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Issue 1,393 Wednesday 1 June 2011
CITY BACKS PLANS
FOR NHS SHAKE-UP
POLITICS
▲
BY ELIZABETH FOURNIER
THE CITY has thrown its weight
behind controversial government
plans to reform the NHS, according to
the latest results from our Voice of the
City panel, run in association with
PoliticsHome.com.
More than two-thirds of our panel of
business and finance professionals
said they were in favour of plans to
allow “any willing provider”, whether
NHS, private or voluntary, to offer pub-
lic health services, and 65 per cent said
they supported proposals for a regula-
tor that would promote competition
to provide NHS services in England.
The panellists, recruited to repre-
sent a cross-section of the business and
financial community in and around
London, were responding to plans put
forward in January by health secretary
Andrew Lansley for a radical shake-up
in how the NHS is run. More than 500
panellists responded.
Their views provide a stark contrast
to the backlash that the government
has faced since Lansley’s Bill was
published. Unions, NHS leaders and
MPs from all the major political par-
ties have insisted that the reforms
need to be rethought.
Under the plans, 151 primary care
trusts (PCTs) and strategic care author-
ities will be disbanded by 2012 and
replaced by consortia of GPs responsi-
ble for commissioning services.
Though 71 per cent of participants
in our poll came out in favour of scrap-
ping PCTs, just 17 per cent felt that GPs
should have sole responsibility for
commissioning public health services,
with 41 per cent preferring that a
wider range of NHS professionals also
be involved in the process.
A further 13 per cent said that local
councillors should also be on commis-
sioning bodies, to give greater demo-
cratic accountability to the process.
Just 11 per cent said commissioning
services should remain unchanged.
FTSE 100 ▲5,989.99 +51.12 DOW ▲12,569.79 +128.21 NASDAQ ▲2,835.30 +38.44 £/$ 1.65 unc £/¤ 1.14 t-0.01 ¤/$ 1.44▲ +0.01
BUSINESS WITH PERSONALITY
www.cityam.com FREE
New bidder
enters race
for AssetCo
▲
EXCLUSIVE
BY ALISON LOCK
A THIRD bidder is circling troubled
London fire engine supplier AssetCo in
addition to the two already named,
The health reforms City A.M. has learned.
currently propose
9% that ‘any willing Manchester-based turnaround
provider’, whether and investment house Consilia
NHS, private or Partners is currently meeting
voluntary, could now AssetCo’s shareholders as it prepares
%
provide NHS
24% services. Do you to make a bid.
support these plans? Consilia enters the bidding along-
67% side Bahraini fund Arcapita and Italian
Yes investor Investindustrial, both of
which have previously submitted
No offers for AssetCo.
Don’t know The three bidders are keen to snap
Do you
up AssetCo, which remains a prof-
support itable operating company, as its share
9% plans for a price has slumped to 3.6p per share
regulator from highs of 66p in November 2010
to promote after a series of financial setbacks and
competition
internal strife.
%
in NHS
26% services in However, City A.M. understands that
England? AssetCo faces a claim for £180,000 in
65%
unpaid bills from a second creditor,
Yes parts supplier Supply 999, alongside
No Northern Bank’s £1.3m claim for the
return of its overdraft.
Don’t know Supply 999, which was part of
AssetCo until December 2010 when it
The results of our poll show the City is overwhelmingly in favour of health secretary Andrew Lansley’s NHS reform bill Picture: REUTERS had a management buyout, joined
Northern Bank’s creditor petition on
“GPs have gone through a long that the reforms should be significant- Cameron’s handling of the dispute. 17 May.
training in providing first level health ly delayed to allow for further analysis. ALLISTER HEATH: P2 Arcapita’s most recent offer of 14-
care,” said one panellist. “It is unrea- But just eight per cent of our panel- If you wish to apply to join our panel of 21p per share on 14 March is still
sonable to expect them to be experts lists said they most approved of Nick business and finance professionals, and take lodged with the Takeover Panel.
in health economics and the compet- Clegg’s handling of the NHS reform our weekly, 30-second email survey, please go Gareth Taylor of Investec, which
ing forces of healthcare providers – we debate, with 37 per cent backing David to www.cityam.com/panel advises Arcapita, said that offer no
should have specialists doing this.” longer applies because AssetCo issued
Lansley has admitted the cost of the a highly dilutive share placement later
reforms would include a £1bn redun- in March – but it remained interested
dancy bill from scrapping more than in making a bid.
24,000 NHS positions, but said that the “Arcapita remains an interested
changes are projected to save more party open to dialogue with the man-
than £5bn this parliament. agement team,” he said.
Downing Street was forced to deny AssetCo’s shareholders have seen
over the weekend that Lansley may their stakes diluted after it issued
quit the cabinet over changes to the 160m 10p shares to a small group of
proposed reforms, as Liberal Democrat investors to raise £16m in March.
members of the coalition push for the One investor told City A.M. his fund
bill to be watered down. was interested in an external bid as it
Last month, deputy prime minister feared the alternative would be anoth-
Nick Clegg called for clauses on private er huge placement at 1p per share or a
sector involvement and encouraging
In association with Apply to join today at sale to one investor for a nominal sum,
competition to be removed, and said PoliticsHome.com www.cityam.com/panel PoliticsHome.com
leaving its stake worthless.
Certified Distribution
04/04/11 - 01/05/11 is 103,899
 2 News
Why the NHS needs to be reformed
EDITOR’S LETTER
ALLISTER HEATH
FOR once, some good news for the gov-
ernment’s proposed healthcare
reforms. They may have been
slammed in most quarters but mem-
bers of our special panel of business
and financial professionals love them.
Over 500 took part in our latest survey
(in partnership with PoliticsHome), as
we report on page 1, and two-thirds
backed the idea that a variety of
organisations, whether NHS, private
or voluntary, should now be able to
provide NHS services. This is a sensible
view to take, even if most other demo-
graphics in the UK disagree.
7th Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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WHAT THE OTHER PAPERS SAY THIS MORNING
UK CONSUMER RECOVERY SET TO BE
SLOWEST IN 180 YEARS
The UK economy is set to experience
the slowest pick-up in consumer
spending of any post-recession period
since 1830, according to a Financial
Times analysis of official forecasts.
Families are expected to spend just
slightly more by 2015 than they were
before the financial crisis hit in 2008,
as high inflation, tax rises and slow
wage growth eat into disposable
incomes.
BUILDERS PROP UP HOUSE SALES
WITH £835M
Housebuilders have pumped £835m
into purchases of the homes they
build to support struggling buyers
and maintain sales volumes. The
Home Builders Federation, which rep-
resents the industry, said builders
had invested in shared equity
schemes. These have helped 30,000
The NHS is very different to other
health systems in other countries. For
example, in Germany, a society which
many would argue has a better overall
health system than Britain’s (and
retains universal access), just 31 per
cent of hospitals are owned by the gov-
ernment. Slightly more – 32 per cent,
and rising – are owned by for profit
firms and 37 per cent are owned by
the not-for-profit charitable sector.
Over there, the idea that the state
must own all hospitals is seen as a
weird idea redolent of an archaic
worldview. What matters are out-
comes and ensuring the best bang for
the taxpayer’s buck.
It is not just Germany which suc-
cessfully involves the private sector to
a much greater extent than we do to
ensure that the whole population
enjoys a higher level of healthcare. In
Spain, the region of Valencia has
called on for-profit companies in a big
way since 1997. A private consortium
provides all healthcare services for
over 20 per cent of that region, cover-
US housing in
double-dip fall
US ECONOMY
▲
BY JULIAN HARRIS
US HOUSE prices in March sank even
deeper than the levels last seen dur-
ing the financial crisis, according to
the widely regarded Standard and
Poor’s Case-Shiller survey.
The 20-city index fell to 138.16,
below the April 2009 low of 139.26,
meaning that home prices have fully
retreated from gains posted from May
2009 through June 2010, putting
housing in a double-dip downturn.
Prices fell 3.6 per cent on a year-on-
year basis in March, compared with a
3.3 per cent year-on-year drop in
February.
Meanwhile, in further negative
data for the US, confidence on the US
high street sank to an index score of
60.8 this month, from a revised 66 in
April – a six-month low.
first-time buyers priced out of the
market over the past three years get a
foot on the ladder.
SHELL AND ROSNEFT IN TALKS ABOUT
ARCTIC DEAL
Royal Dutch Shell has held talks with
Rosneft about exploring blocs in the
Arctic that the Russian state oil cham-
pion had originally committed to BP.
Peter Voser, chief executive, said talks
last week in Russia with Rosneft and
Igor Sechin, the energy tsar, had
looked at “a multitude of blocs”.
These included the three in the South
Kara Sea that had been earmarked for
the alliance with BP.
HOUSE OF FRASER IN £250M BOND
REFINANCING
Department store group House of
Fraser has refinanced its bank debts
by issuing a £250m bond. The over-
subscribed issue of senior secured
notes – with an annual coupon of
8.875 per cent – carries a seven-year
term.
ing nearly 1m people, under contract
to the regional government. Various
private sector contractors have
improved services by providing longer
opening times and using IT properly,
with patients in many cases now able
to view up to the minute waiting
times for hospitals and GP surgeries
over the internet, as a report from the
Reform think-tank points out.
The future for Britain is to move
down the continental European route:
a social insurance system with mixed
sources of financing and a variety of
providers. There is no other way for-
ward. As consumers become richer,
they understandably want to spend
more of their money on healthcare.
The problem is that the government is
out of money: the budget deficit
remains vast and even its attempt to
increase real terms health spending
slightly year on year (rather than cut-
ting it) is proving extremely painful.
Taxes are nearing their maximum
level: any more and the economy will
wither away as mobile firms and
“This suggests there is little hope of
a decent bounce back in real con-
sumption growth,” commented Paul
Dales of Capital Economics.
Real consumption grew just 2.2 per
cent in the first-quarter of the year
compared to a year earlier, while GDP
growth came in at just 1.8 per cent.
There was also bad news for US
manufacturing, with a purchasing
managers’ index for Chicago plum-
meting to 56.6 in May -- down from
67.6 in April. Disruptions to the auto-
mobile trade from the Japanese earth-
quake were blamed for the figures.
Ben Bernanke’s Federal
Reserve faces growing
concerns over the
weakening American
recovery
MONARCH CHANGES COURSE TO BEAT
DECLINE OF PACKAGE HOLIDAY
Falling demand for package holidays
has forced Monarch to end more than
four decades as a charter airline to
become a scheduled carrier instead.
Monarch will confirm today that its
strategy is changing and it will now
compete directly with easyJet,
Ryanair and British Airways in the
scheduled market. The shift will be
accompanied by a revamped brand
and charging structure.
BROKEN FOOD SYSTEM WILL
AGGRAVATE HUNGER, OXFAM WARNS
Food prices will double in the next 20
years, pushing millions of the world’s
poorest people into hunger, due to a
“broken” food system that causes a
devastating gap in the food supply, a
report from Oxfam warns. Food
prices are set to increase by between
70 and 90 per cent by 2030.
workers quit the UK. So the only way
to spend much more on health over
the next couple of decades – and in 50
years’ time spend perhaps 20-25 per
cent of GDP – is to allow consumers to
contribute directly to the costs of
healthcare, as is already the case in
nations such as France or Switzerland.
Replacing one state-owned monop-
oly by a privately owned one would be
stupid. What is needed instead is
more competition, property rights
and an incentive for new entrants to
provide the best services at the cheap-
est cost to consumers, who need to be
empowered. The coalition’s plan has
flaws – not least the idea that GPs
should be given so much responsibili-
ty for commissioning spending – but
also contains many good ideas. It is
time for radical thinking on how to
build a world-class British healthcare
system fit for the twenty-first century.
Apply to join our panel of City profession-
als at www.cityam.com/panel
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Andrew Sentance said the Bank of England was in danger of losing its credibility
Sentance attacks Bank
UK ECONOMY
▲
BY KATIE HOPE
OUTGOING Monetary Policy
Committee (MPC) member Andrew
Sentance used his last day in office to
launch a stinging attack on the Bank
of England.
Sentance, whose five-year term
ended yesterday, said the Bank of
England was in danger of losing its
credibility. “I think that there is a big
risk now emerging to credibility of
the Bank,” he said in an interview
OPENX RAISES $20M AS IT SIGNALS
NEW ERA FOR ONLINE ADVERTISING
OpenX, a UK-founded digital display
advertising firm, has raised $20m
(£12m) from SAP Ventures, AOL
Ventures and two giant Japanese
groups to help it take on Google,
Yahoo! and Microsoft. The software
company will use the cash to drive
growth in its core real-time advertis-
ing auction services, which grew rev-
enue 600 per cent last year after it
signed exclusive ad distribution deals
with the likes of Orange, the mobile
phone firm.
CUCUMBER E.COLI SCARE: UKSHOPS
REASSURE CONSUMERS AS SPAIN
DEMANDS COMPENSATION
British supermarkets have urged shop-
pers to carry on buying salad, insist-
ing their produce is free of the E.coli
outbreak that has claimed 16 lives
across Europe.
CITYA.M. 1 JUNE 2011
NEWS | IN BRIEF
Red tape cut for small business
The EU has agreed to simplified
accounting rules for small businesses,
cutting the red tape for the UK’s small-
est firms. Business ministers from
across Europe met in Brussels yesterday
and agreed accounting exemptions for
“micro-entities”. Business minister Ed
Davey said it could save firms as much
as £300m a year. To join the new cate-
gory of companies created by the agree-
ment, companies must not exceed two
of three criteria: a balance sheet total of
€250,000 (£217,000); a net turnover of
€500,000 and an average of 10 employ-
ees during that financial year.
Bank of Ireland deal disappoints
Bank of Ireland said it would impose
large losses on junior bondholders and
disappointed investors by withholding
details on the possibility of a more
attractive deal for holders willing to
take shares instead. Bank of Ireland’s
lower tier two paper dropped sharply
after the lender said it might offer an
equity alternative to its cash buyback
rather than laying out concrete plans for
such an offer. Ireland’s largest bank
wants to avoid falling into state control.
with Sky News.
“If inflation does not come down
in the way that the Bank is suggest-
ing – and I think there is a big risk
that is the case – than that is going to
have a big knock on effect on the
credibility of the bank’s commitment
to its inflation target,” he added.
Sentance, who has consistently
voted for a rise in interest rates over
the past 12 months in a bid to tackle
the rising rate of inflation, accused his
fellow MPC members of “not respond-
ing at all” to above-target inflation.
LIBYA’S GOLDMAN DALLIANCE ENDS IN
LOSSES, ACRIMONY
In early 2008, Libya’s sovereign-
wealth fund controlled by Colonel
Moammar Gadhafi gave $1.3bn to
Goldman Sachs Group to sink into a
currency bet and other complicated
trades. The investments lost 98 per
cent of their value, internal Goldman
documents show. What happened
next may be one of the most peculiar
footnotes to the global financial cri-
sis. In an effort to make up for the
losses, Goldman offered Libya the
chance to become one of its biggest
shareholders, according to docu-
ments and people familiar with the
matter.
TOYOTA LIFTS OUTPUT VIEW
Toyota said yesterday that it expects
to resume production at 90 per cent
of normal capacity during June and
match last year’s output for the year.
CITYA.M. 1 JUNE 2011 News 3

Spain would back

Southern Cross
chairman
Christopher Fisher
believes landlords
will agree to a

Carstens for IMF

rental cut

Spain’s vote is with the seat, an indivis-

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

Rental battle
puts Southern
Cross on brink
Southern Cross, said:“We believe that
▲

HEALTHCARE
BY DAVID HELLIER
THE chances of the UK’s largest pri-
vate sector nursing home operator
collapsing increased last night as two
of its landlords refused a plan that
would see its rents reduced by 30 per
cent over the summer.
Southern Cross, which cares for
more than 30,000 old people, says it
needs its landlords to agree to a rent
reduction to give it a chance of
restructuring its finances.
But last night it emerged that
Bondcare and Four Seasons, two of its
landlords, had decided to resist the
move and look for another operator
instead.
Sources at Southern Cross said they
remained hopeful that NHP, its
biggest landlord, and others would
back the life-saving rental cut scheme
which would enable the group to
trade through the summer whilst try-
ing to find an equity partner to inject
£100m or so into the cash-strapped
business.
Southern Cross said that it wanted
to reach a deal with its landlords by
the end of today.
Christopher Fisher, chairman of
all of the key stakeholders in
Southern Cross want this restructur-
ing to succeed.
“We are in dialogue with the
Department of Health, our lenders
and landlords and they continue to
support the process. The objective
will be to emerge with a stable and
sustainable business model for the
continuing care of our residents.”
However, last night it emerged that
the government was preparing for
the possibility of the group failing to
see itself through its financial diffi-
culties.
The group has been struggling to
pay its rents and is on the verge of col-
lapse. It recently warned it was in
“critical financial condition” as it
reported a half-year loss of £311m.
Many of its rent deals were struck
during boom times in the industry
and the group has also been hit by
some misguided property deals.
If the rental reduction pro-
gramme, due to run from today until
30 September, goes through,
Southern Cross advisers Greenhill
and Clifford Chance, will hope to
tempt an equity partner to invest
around £100m in the group.

SIP and Betfred EIB calls halt to

in final Tote race Glencore finance
▲

BUSINESS OF SPORT COMMODOTIES

THE winning bid for the Tote is set to
be announced tomorrow – with fron-
trunners Sports Investment Partners
(SIP) and bookmaker Betfred neck and
neck at the finish.
A Sky News report yesterday sug-
gested SIP chief Sir Martin Broughton
had increased the value of his offer to
the Treasury by £2m and the overall
value by a “substantially larger sum”
just before yesterday’s 7pm bid dead-
line.
The winner is set to be announced
by Culture secretary Jeremy Hunt.
Last night both SIP and Betfred
declined to comment.
THE European Investment Bank (EIB)
has suspended new financing to
Glencore over concerns about the
mining giant’s alleged tax avoidance
in Zambia.
The bank, which is the European
Union’s financing arm, had already
agreed to lend $50m (£30 million) to
Glencore to renovate a smelter and
reduce sulphur dioxide emissions at
its Mopani Copper Mines subsidiary
in Zambia.
However all future funding has
now been cut after an intervention by
Philippe Maystadt, the EIB president.
Glencore denies tax avoidance.
 4 News CITYA.M. 1 JUNE 2011

Nokia shares tumble as

firm abandons targets
the industry, had lost too much mar- from its devices and services business

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

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

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CITYA.M. 1 JUNE 2011 News 5

Alliance Trust buys

APPLE chief execu-
tive Steve Jobs, who
spent months on
medical leave, will
open an annual

back £68m shares

developers’ confer-
ence next week

Picture:
REUTERS

The buybacks reduced its share

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

Steve Jobs to
return to the
Apple stage
joined by his executive team during
▲

TECHNOLOGY
BY HARRY BANKS
APPLE chief executive Steve Jobs, who
spent months on medical leave, will
open an annual developers’ confer-
ence next week showcasing the iPad
maker’s latest computer software and
a new cloud computing service.
Apple’s shares rose 3.1 per cent to
$347.83 after it said yesterday that
Jobs, along with a team of executives,
will deliver the keynote speech at the
6 June conference. It was unclear,
however, if the chief executive is
returning from medical leave.
An appearance by Jobs, a survivor
of a rare form of pancreatic cancer,
would mark one of the few occasions
he has showed up in public on the
company’s behalf since going on med-
ical leave – for an undisclosed condi-
tion – in January.
In March, a thin but energetic Jobs
took to his now-familiar platform at
San Francisco’s Yerba Buena Centre to
unveil the iPad 2, drawing a standing
ovation after months of frenetic
media and investor speculation about
his health.
But this is the first time in recent
years that Apple has said Jobs will be
the keynote speech. Jobs typically
takes the stage alone at most new
product or service launches.
Channing Smith, co-manager of
the Capital Advisors Growth Fund,
said he was “very surprised but
happy” to see that Jobs appeared to be
taking a more active role in strategic
planning, though he was also encour-
aged that Apple was letting other
executives share the spotlight.
“The biggest overhang on Apple’s
stock is the health concerns sur-
rounding Steve Jobs and the move to
show a united front from the man-
agement team is overdue,” Smith
said.
Jobs and his team plan to unveil a
new cloud-based service called
iCloud, which will offer remote com-
puting and data over the internet,
and a slew of software upgrades at
the conference including Lion, its
Mac OS X computer operating system,
and iOS 5, the next version of its
mobile operating system.
Apple – which has so far only pro-
vided content through its iTunes
store – has been gearing up for the
launch of cloud services by building a
huge data centre in North Carolina.

Half of retirees Novae confirms

to leave nothing Omega talks
▲

INSURANCE
HALF of UK retirees will not be able to
afford to leave relatives an inheri-
tance, new research out today shows.
More than a quarter of this year’s
retirees believe it will be impossible to
leave anything as inheritance, accord-
ing to a survey by the Prudential,
while 22 per cent of respondents were
not sure their savings would fund
their retirement.
Concerns over how to fund retire-
ment comfortably persist, with only 39
per cent of people surveyed confident
that they have saved enough. Average
expected retirement income was
£16,600 per year, the survey found.
INSURANCE
LLOYD’S insurer Novae ended specula-
tion about its plans to merge with rival
Omega Insurance yesterday, confirm-
ing it had opened Omega’s books.
Novae, which wrote £587.7m of
insurance in 2010, said it was under-
taking due diligence to evaluate the
merits of a possible merger.
It joins unlisted Lloyd’s insurer
Canopius among named bidders for
Omega, as well as unconfirmed bids
from Delphi Financial and Barbican
Insurance in the past five months.
However, discussions with Canopius
have taken months and analysts said it
may take a while to finalise any bid.
 6 News
Serious Fraud Office to
probe EADS bribery claim
▲
REGULATION
BY HARRY BANKS
BRITAIN’S Serious Fraud Office is
investigating allegations that
European defence group EADS bribed
Saudi Arabian officials to win a
$3.3bn (£2bn) communications con-
tract.
The probe centres on a contract
awarded to GPT Special Project
Management, owned by EADS, to pro-
vide communications and intranet
services for the Saudi National Guard,
which protects the Kingdom’s royal
family.
“It is the case that the SFO are look-
ing at it (the contract) but have been
trying to keep it under the radar
because it’s a sensitive issue,” a source
said yesterday.
GPT Special Project Management is
a subsidiary of Paradigm Services, a
unit of Astrium, a satellite arm of
EADS.
“Certain allegations have been
made and these are being properly
investigated,” an EADS spokesman
said. The SFO declined to comment.
The allegations surfaced in employ-
ment tribunal proceedings and were
made by a former GPT employee who
claimed Saudi officials were given
luxury cars, jewellery and large sums
of cash from London accounts
through intermediaries.
Tough British anti-corruption laws
will come into force in July, but only
for crimes committed after that date.
Iceland finance minister Steingrímur Sigfússon said economic prospects had brightened
Iceland eyes bond issue
CAPITAL MARKETS
▲
BY HARRY BANKS
ICELAND is planning to meet investors
this month about a possible Eurobond,
one of the lead managers said yester-
day, as the country prepares its first
international sale of bonds since its
economic meltdown.
Iceland, which is recovering from its
worst-ever downturn following the col-
lapse of its top banks, has planned
investor meetings for June 1-8 and has
appointed Barclays Capital, Citigroup
CITYA.M. 1 JUNE 2011
and UBS as lead managers.
Iceland is keen to return to the inter-
national capital markets and get its
economy back on a normal footing but
has been prevented from doing so due
to uncertainties over a dispute with
Britain and the Netherlands over more
than $5bn (£3bn) in “Icesave” debt.
The government now expects most
of that debt to be covered by the estate
of Landsbanki, the failed bank which
ran the Icesave accounts, while aid
from the IMF and its Nordic neigh-
bours looks set to flow uninterrupted.
CITYA.M. 1 JUNE 2011 News 7

Aldermore says
loans to SMEs Serco jumps
have risen 75pc
on Indian buy
▲

BANKING

BRITISH bank Aldermore said its loan SUPPORT SERVICES of Blackstone’s clients, will stay on as

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

HSBC Germany in
talks with WestLB
BANKING
▲

BY JULIET SAMUEL deal. Investec’s Gareth Hunt said:

HSBC’S German private banking
arm is in talks to buy a large part of
WestLB, the nationalised German
lender.
Andreas Schmitz, chairman of
HSBC Trinkaus & Burkhardt
Rothschild, has said that the bank is
“in talks” to buy a chunk of the
German bank. He did not confirm
which unit HSBC is looking at, but it
is thought to be the structured
finance and corporate customers
business.
However, the German govern-
ment might not want to sell off its
stake in WestLB in parts and might
instead think that it can get better
value by selling the bank as a whole.
“Acquisition of a European corpo-
rate book makes strategic sense pro-
vided the price is right.”
But he added: “That said, we
would very much like to see
announcements of rationalisations
and/or closures alongside announce-
ments of acquisitions.”
Many analysts were disappointed
by HSBC’s recent strategic review, in
which it announced moves to sell
off large parts of its North American
business, estimated at a value of
$25bn, but did not go further and
name other assets that it will sell to
slim down the business.
Chief executive Stuart Gulliver
has promised a “series of announce-
ments” on disposals as deals are con-

PART TIME MBA

Analysts had mixed views on the firmed.

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Desire finds North Falkland leads Salamander farm out in Vietnam
Oil and gas exploration group Desire
Petroleum yesterday revealed it had
found two new leads from early results
of a 3D seismic survey over its acreage in
the North Falkland Basin and has com-
pleted a detailed survey in order to iden-
tify new targets. Chairman Stephen
Phipps said the prospect inventory will
continue to grow as fully processed seis-
mic data is delivered and interpreted
towards the end of 2011.
Independent oil and gas company
Salamander Energy yesterday announced
an agreement with Japanese oil and gas
exploration JX Nippon to farm out a 20
per cent interest in Block 101-100/04 that
contains the Cat Ba oil prospect offshore
Vietnam. Chief executive James Menzies
said the transaction reduced Salamander’s
financial exposure to the drilling while
staying leveraged to the upside in the
event of success at Cat Ba.
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Blinkx unveils fashion tie-up Capita buys health recruiter WESTMINSTER

The world’s largest video search engine
Blinkx yesterday announced a partner-
ship with FashionTV, CHIC.TV and VID-
CAT to offer fashion, beauty and
celebrity-style enthusiasts access to
fashion advice, news and trends. The
company has made more than 720 part-
ners and indexed over 35m hours of
video and audio content to date.
Outsourcing specialist Capita has acquired
specialist healthcare recruitment firm BUSINESS
Team24. Capita is paying an initial £24m
for the recruiter, with up to £2m more
SCHOOL
payable depending on the firm’s perform-
ance in the year to 31 March, 2012.
Team24 provides nurses and doctors at
short notice for a range of placements
across the NHS and the private sector.
8 Focus on Greece CITYA.M. 1 JUNE 2011

Even if the ECB gets its way,

its task will only get harder
I
t’s hardly surprising that when it
comes to scary piles of debt, EU
bureaucrats are no more willing to
confront the horrible truth than
ordinary consumers. The truth is that
Greece faces a funding shortfall of €60-
80bn next year, a year in which it was
meant to be ready to go back to markets
for cash.
But even at the time, economists saw
the rescue as a lavish way of kicking the
debt can down the road. Greece’s debt is
still forecast to reach 160 per cent of GDP
before coming down, even if it does
If the EU goes down this route, it will
show that it is the ECB, and not the
diplomats, that is calling the shots. Two
board members of the Bank have
stepped up recently to squash attempts
at an early restructuring: first Juergen
Stark warned that it would be “worse
than Lehman” and then Christian Noyer
opined that it would be a “horror story”.
So what can Greece and the EU do
about this mountain of debt? It’s easy to
agree that the state needs a radical over-
haul, not least so that it is capable of col- Greeks have now been camped out in Athens’ Syntagma Square for days to protest the government’s handling of its debt crisis
lecting its own taxes and selling off at
least €50bn of assets.

Hope of fresh Greek

somehow meet its deficit target of 7.6
per cent this year (having missed last
year’s 8.6 per cent target by 0.9 per cent).
The latest mooted deal – a boost to the
first bailout in return for more promises
that Athens won’t be able to keep – is
The ECB is betting that it will be easier
to force through this reform while
Athens is living hand-to-mouth on EU
cash than it will be after Greece has been
allowed to renege on its debt obligations.

rescue lifts markets

another attempt to move the can down
the road, but it could prove to be more of
a futile tap than a kick.
So what is the alternative? The EU
appears to be creeping back from even
tentative moves to “reprofile”, “resched-
ule” or “softly” restructure Greece’s debt.
Instead, it will hand out the cash to stop
Athens going bankrupt in July, and then
But ultimately, the Bank is trying to
push together two repelling poles of a
magnet: Greeks, who don’t want anoth-
er bailout tied to spending cuts – and
Germans, who don’t want to pay for it.
BOTTOMLINE EUROZONE worse than the 10.5 per cent drop The German insistence on bur-
▲

worry about what to do in August. Analysis by Juliet Samuel BY JULIET SAMUEL
MARKETS across Europe opened to a
strong rally yesterday after reports
that Germany is weakening its
opposition to a second Greek
bailout.
The initial burst of risk appetite
was later knocked by US data and
further doubts on Greece, but the
euro nonetheless gained 0.9 per
cent against sterling, 0.75 per cent
against the Swiss franc, and 0.6 per
cent against the greenback by
KŝůΘ'ĂƐh<ƌĞĂŬĨĂƐƚƌŝĞĮŶŐ evening.
The markets even brushed off
ZŝƐŬDŝƟŐĂƟŽŶĂŶĚ/ŶƐƵƌĂŶĐĞ Greek retail sales data showing a
17.5 per cent year-on-year plunge in
consumer spending in March, even
ƉŽƐƚͲDĂĐŽŶĚŽ
FAST FACTS | WHAT ARE GREECE’S OPTIONS?
tĞĚŶĞƐĚĂLJϭϱ:ƵŶĞϮϬϭϭͮϴ͘ϬϬĂŵͲϭϬ͘ϬϬĂŵ
Herbert Smith, Exchange House, Primrose Street, London, EC2A 2HS ● A SECOND BAILOUT
Seems to be the most likely near-term option. It
would probably consist of an extension in the
It is just over a year since the Deepwater Horizon incident in the Gulf of Mexico maturity, cutting the interest and possibly
increasing the size of the bilateral emergency
ĂŶĚƚŚĞKŝů^ƉŝůůWƌĞǀĞŶƟŽŶĂŶĚZĞƐƉŽŶƐĞĚǀŝƐŽƌLJ'ƌŽƵƉ;K^WZ'ͿƚŚĂƚǁĂƐ loans that made up Greece’s first €110bn
ƐĞƚƵƉƚŽƚĂĐŬůĞƚŚĞƌĞůĂƚĞĚŝƐƐƵĞƐŝŶƚŚĞh<ŚĂƐŶŽƚďĞĞŶƌĞƐƟŶŐŽŶŝƚƐůĂƵƌĞůƐ͘ bailout, but without extending this to Greece’s
The group, which comprises the industry, regulators and trade unions, has other debts. It is likely to come with harsh con-
taken major strides in ensuring that the regulatory regime under which the UK ditions attached such as an extension of state
ŽīƐŚŽƌĞŽŝůĂŶĚŐĂƐŝŶĚƵƐƚƌLJŽƉĞƌĂƚĞƐƌĞŵĂŝŶƐƌŽďƵƐƚĂŶĚĮƚͲĨŽƌͲƉƵƌƉŽƐĞ͘ asset sales and more spending cuts. Even if
Greece were capable of delivering on this, most
KŶĞ ŽĨ K^WZ'͛Ɛ ƉƌŝŽƌŝƟĞƐ ŝƐ ƚŽ ĂƐƐĞƐƐ ƚŚĞ ƉŽƚĞŶƟĂů ƌĞŵĞĚŝĂƟŽŶ ĂŶĚ economists see it only as a stop-gap measure.
ĐŽŵƉĞŶƐĂƟŽŶĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂůĂƌŐĞŽŝůƐƉŝůůŝŶƚŚĞh<^ĂŶĚĚĞƚĞƌŵŝŶĞ
how these are provided for and whether the provisions the UK has in place
ƌĞƋƵŝƌĞŝŵƉƌŽǀŝŶŐ͘ CITY VIEWS: SHOULD GREECE BE FORCED TO LEAVE THE EURO?
ƩĞŶĚKŝůΘ'ĂƐh<͛ƐďƌĞĂŬĨĂƐƚďƌŝĞĮŶŐƚŽŚĞĂƌƚŚĞůĂƚĞƐƚƵƉĚĂƚĞŽŶK^WZ'͛Ɛ
ǁŽƌŬ ĨƌŽŵ :ŝŵ ,ŽƵƐĞ͕ ƚŚĞ ŐƌŽƵƉ͛Ɛ ĐŚĂŝƌŵĂŶ ĂŶĚ ƌĞŐŝŽŶĂů ǀŝĐĞ ƉƌĞƐŝĚĞŶƚ ĂŶĚ
ŵĂŶĂŐŝŶŐĚŝƌĞĐƚŽƌĂƚƉĂĐŚĞEŽƌƚŚ^ĞĂ>ƚĚ͘zŽƵĐĂŶĂůƐŽŚĞĂƌƚŚĞǀŝĞǁƐŽĨWĂƵů
<ŝŶŐ͕ĚŝƌĞĐƚŽƌŽĨ/E^ŽŶƐƵůƟŶŐ>ŝŵŝƚĞĚ͕ŽŶŚŽǁƚŚĞŝŶƐƵƌĂŶĐĞŵĂƌŬĞƚŚĂƐ
JOHNNY CHAM |
ƌĞĂĐƚĞĚƚŽƚŚŝƐŝŶĐŝĚĞŶƚĂŶĚŝƚƐƉƌĞĚŝĐƟŽŶƐĨŽƌƚŚĞĨƵƚƵƌĞ͘ COFUNDS
seen in February.
The optimism was fuelled by the
prospect of an extension in Greece’s
€110bn (£96.2bn) bailout loans that
might not also include a broader
restructuring of its debt to other cred-
itors. Germany has been pushing for
a “soft restructuring”, forcing private
creditors and the ECB to take some of
the pain by extending the maturity of
their loans to Athens, a stance firmly
opposed by the ECB itself.
“While the EU finance ministers
and the ECB were broadly always
against any form of soft restructur-
ing, the real sticking point was the
German… push for an early resched-
uling of Greek bonds,” said analysts
at BNP Paribas in a note.
● “REPROFILING”/“SOFT RESTRUCTURING”
The lightest form of burden-sharing, this would
involve creditors agreeing to extend the maturi-
ty of all Greece’s debts. However, the ECB, one
major creditor, is fiercely opposed to granting
relief without evidence that Greece has at least
met some of the conditions of its first bailout.
Ratings agencies have also said that the move
would constitute a “selective default”.
● BROADER VOLUNTARY RESTRUCTURING
This could equate to a 50 per cent haircut on
Interviews by Shiba Babamiri and Scarlett Archer
JUISEPPE D’ANGELO |
AEGIS
den-sharing, in part driven by popu-
lar domestic opposition to another
bailout, had barred a deal because
the ECB is anxious about allowing
haircuts both on the Greek debt it
holds and on that held by banks
across the Eurozone.
Capital Economics’ Jonathan
Loynes said: “This stand-off was
threatening to blow up between the
European Commission and the ECB.
If Germany is backing down on the
bailout that does diffuse that situa-
tion for a while.” But he added:
“What seems to happen with these
bailouts is that each one has a small-
er impact on markets than the pre-
vious one.”
MARKETS: P18; BELARUS: P19
Greece’s debt via cutting coupon rates and
extending maturities. Economists think this will
have to happen; the question is when.
● HARD RESTRUCTURING/EURO EXIT
The EU/ECB are strictly against this “Doomsday
scenario”. It could impose haircuts of 75 per
cent on Greece’s creditors, which include the EU
and major international banks. ECB board
member Juergen Stark says it would be “worse
than Lehman”. But others argue it would be
better for Greece in the long run.
TREVOR BROWN |
KENNEDYS SOLICITORS

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

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

We’re proud to introduce the latest showpiece in
Bentley history – the New Continental GT.
Representing the very best in British design, this is a
Bentley of extremes. A thrilling mix of supercar
performance and handcrafted luxury, this stunningly
sculptured coupe combines timeless Bentley styling
with the most advanced technologies. This is a true
motoring enthusiast’s car. The pinnacle of pure power
and luxury. To take a test drive* and find out more about
our passion for performance, visit the Bentley Stand at
Motorexpo in Canary Wharf from 6th - 12th June.
Fuel economy figures for the Continental GT in mpg
(l/100km): Urban 11.1 (25.4); Extra Urban 24.9 (11.4);
Combined 17.1 (16.5). CO2 Emissions (g/km): 384.

For more information call 01270 535032† or visit www.bentleymotors.com

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

PRINCE TO This year’s

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

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CITYA.M. 1 JUNE 2011 News 15

Tullow plans Ronson project

makes first deal
public share PROPERTY

▲
LONDON property tycoon Gerald

sale in Ghana
Ronson’s new investment vehicle
completed its maiden purchase yes-
terday.
Ronson Capital Partners (RCP), “a
club of like-minded partners” drawn
mostly from the UK and the Middle
East, has spent £63m on
International House on Chiltern
ENERGY ration blocks off the Ghanaian Street, Marylebone.
▲

BY MARION DAKERS shore, and operates the Jubilee field RCP aims to demolish the 12-storey
that lies across the blocks. tower once the existing tenants’
TULLOW OIL yesterday laid out plans The president of Ghana attended lease deals expire in 2014, before
to float 4m shares in Ghana, where the first oil celebration in December, building a residential block on the
last year it was instrumental in pro- and production is expected to hit site.
ducing the country’s first 120,000 barrels per day next International House was previous-
oil. month. ly owned by Targetfollow, the one-
Tullow said it Last week, Tullow Chief executive Kevin Appleton stands down at the end of the month Picture: Lavendon time owner of Centrepoint and the
hopes to demon- splashed out £186m to Can of Ham site whose subsidiaries

Lavendon chief to leave

strate its commit- buy EO Group, a fell into administration late last year.
ment to Ghana by minority partner in “Ronson Capital Partners is
allowing the the Jubilee field pleased to have completed on our
public to buy the that was struggling maiden investment. We are confi-
shares, which to meet its operat- dent that RCP will become a signifi-
would be worth ing costs. cant name in the property sector as
£53.9m at yester- The company will Appleton will leave by mutual well as a club of which many will
▲

day’s London
price of £13.47.
The firm will
price the offering on
13 June, and is expected
to list the shares towards
the end of the month.
“We would like everyone in Ghana
to have the opportunity to invest in
the future performance of Tullow,
especially as we embark upon fur-
ther exciting exploration and devel-
opment activities in Ghana and
across our global portfolio,” said
chief executive Aidan Heavey.
Ghanaian bank IC Securities is act-
ing as lead broker on the offering,
with Standard Chartered and
Agricultural Development Bank also
selling shares through their branch-
INDUSTRIAL
join a string of com- agreement at the end of the month, wish they were members,” said chief
modities firms on PLATFORM hire company Lavendon and is thought to be looking for executive Jonathan Goldstein, who
the Ghana Stock has begun the hunt for a new chief another role in the industry. also acts as deputy chief for Ronson’s
Exchange (see table executive following Kevin Appleton’s Chairman John Standen and other development firm Heron
below), including branch- departure after nine years at the firm. directors will fill in while head- International.
es of Total, AngloGold Ashanti Lavendon recently completed a hunters find a replacement chief. Ronson himself is thought to have
and state-run Ghana Oil Company. business review following takeover Some analysts were surprised by invested a significant sum of his own
Tullow shares closed up 1.4 per offers, which the firm said brought the timing of his departure. “While money in RCP, with his property
cent at 1,347p yesterday. up questions of succession. trading remains in line there is pre- developer Heron also injecting equity.
The firm’s shares were sent tum- sumably much to do in delivering the Investec provided a senior debt
bling in January after Ashtead and improvements identified for the and equity package for the purchase,
ANALYSIS l Tullow Oil
TVH Services walked away from a growth plans outlined to take and said it will continue to support
1,500
p 1,347.00 takeover pursuit, after Lavendon Lavendon forwards,” said Panmure the venture “in this tough funding
31 May
1,450
rejected their advances. Gordon in a note. environment”.
1,400
1,350

1,300
Losses mount NEWS | IN BRIEF
es in the country.
Tullow has interests in two explo- 1,250
28 Feb 18 Mar 7 Apr 12 May 23 May
at Chariot Oil VW makes formal offer for MAN
German carmaker Volkswagen (VW) for-
mally launched its bid for MAN yesterday, in
pounds and the successful $1m (£608m)
disposal of a non-core diagnostic sub-
sidiary.
SOME OF THE COMPANIES LISTED IN GHANA a move toward creating Europe’s biggest
truckmaker. VW aims to raise its stake in Renold reports a profit increase
Company Market cap First listed MAN to 35-40 per cent of voting rights Renold, the world’s second-largest suppli-
ENERGY
▲

from just over 30 per cent now, just enough er of industrial chains, yesterday report-
Total Ghana £97.6m July 1991 AIM-LISTED exploration group to get regulatory approval for closer coop- ed revenue of £191m for the year to the
Guinness Ghana £85m August 1991 Chariot Oil & Gas more than doubled eration between MAN and Scania without end of March, up from £156.1m in the
its losses last year, but said it was con- buying the whole company. VW made a previous year. Operating profit was £7m,
Unilever £182.4m August 1991 fident of becoming the first firm to deliberately low offer of €95 (£83) per with net operating profit of £4.3m, com-
drill in Namibia later this year. share for MAN yesterday, 1.8 per cent pared to a loss of £4.8m the prior year.
Standard Chartered Bank £493.6m August 1991 Chief executive Paul Welch said the below the current market value of €96.69 Adjusted earnings per share were 2p.
company was “in control of its des- per share.
PZ Cussons £15.7m August 1991 tiny” as it posted a loss of $7.3m Upbeat forecast for Voestalpine
Societe Generale £71.3m October 1995 (£4.4m) for the year to March, due in ValiRx sees revenues rise Austrian steel group Voestalpine yesterday
part to soaring staffing costs. ValiRx, the life science company with a predicted strong earnings after Asian
Ghana Commercial Bank £320.5m May 1996 Exploration costs sank from $17.6m focus on cancer diagnostics and thera- demand for luxury cars and orders for its
to $4m during the year, but this is peutics for personalised medicine, has products from the energy industry helped it
AngloGold Ashanti £5,215m April 2004 expected to rise as work on Chariot’s seen revenue for the year increased to beat full-year profit forecasts. The maker of
16 prospects in Namibia gets under- £177,297, up from £29,326 in 2009, in its steel used in cars, railways and pipelines
TOTAL WORTH OF GHANAIAN FIRMS LISTED £8,169m NOVEMBER 1990 way. final results. The company pointed to said yesterday it was operating at full
Chariot shares closed down 0.3 per solid progress with pre-clinical pro- capacity and net sales were close to levels
NB All figures converted from Ghanaian Cedi (1 cedi = 40.3p) Source: Ghana Stock Exchange website
cent at 225.25p. grammes of leading therapeutic com- last seen before the economic downturn.

TUESDAY 14TH JUNE TO SATURDAY 18TH JUNE 2011

300 YEARS OF THE WORLD’S

MOST FAMOUS RACECOURSE
Hospitality packages from £245 per person
hospitality@ascot.co.uk 0870 727 4321 ascot.co.uk
Photography: Simon Procter Attire: Vivienne Westwood Millinery: Stephen Jones
 16 News CITYA.M. 1 JUNE 2011

Playstation pays price for gamers’ privacy loss

threats emerging across the digital
landscape. The hacking of personal
data is a concern for anyone wielding
their online purchasing power, includ-
ing those fighting their own virtual
battle – online gamers.
The recent attacks on the Playstation
Network impacted over 100m users in
BRANDINDEX
the last month alone. Sony has estimat-
STEPHAN SHAKESPEARE ed the costs arising from their security
breach at approximately $173m
announcement of the hack. Between
21 April and 6 May, Playstation’s buzz
rating fell by some 34 points. This
impact was felt across other
BrandIndex indicators, for example the
Impression score of the brand fell from
20 points to eight in the same period.
Just two months ago, Playstation
and Xbox were fighting neck and neck
for second place position in Impression
scores. On 28 February, just one point
Xbox at 16 points). platform which has improved their
Such a dramatic impact on brand perception – just not enough to
Playstation illustrates just how sensi- get them back to the level of their com-
tive the consumer can be to the securi- petitors.
ty of their data. Sony has taken Stephan Shakespeare is chief executive of
measures to beef up the security of the YouGov.
ANALYSIS l Buzz: April – May 2011 ANALYSIS l Impression
35.0 40.0
15.0 30.0

O
NLINE privacy has left few sur- (£105m). The long term damage on the divided the two brands (PS3 at 20
0 20.0
vivors in recent weeks. Dictators Playstation brand however is still play- points, Xbox at 21 points with
and celebrities were not the only ing out on the BrandIndex trackers. Nintendo at 40 points). -15.0 Nintendo Nintendo
10.0
ones left cowering in the shadow Playstation’s apology package on 17 Following the online security scare, PS3 PS3
Xbox 360 Xbox 360
of Twitter. Online consumers were also May did little to stem damage in con- Playstation has seen that gap widen by -35.0 0
shown to be vulnerable to the new sumer “Impression” following the 13 points, (PS3 at seven points and 1 Apr 15 Apr 29 Apr 13 May 27 May 1 Apr 15 Apr 29 Apr 13 May 27 May

Buyout group
pays €2.1bn
for PAI’s Spie
▲
M&A
BY HARRY BANKS latest in a series of European LBOs
bolstered by the recovery of financing
A GROUP led by Clayton Dubilier & markets after the 2008 financial cri-
Rice (CD&R) has agreed to buy sis.
French engineering group Spie Other recent deals include CVC
in a deal valuing it at €2.1bn Partners’ purchase of a majority
(£1.8bn), in the biggest French stake in French rail equipment
leveraged buyout (LBO) since Delachaux and the purchase of
the 2008 financial crisis. upscale shoemaker Jimmy Choo
French private equity group by luxury goods group Labelux.
PAI Partners, which said in Spie said in a statement the CD&R
March it was considering deal was one of several indi-
a possible sale of the cations of interest it
electrical and mechani- received and would be
cal engineering firm, positive for the compa-
confirmed a deal to sell ny’s prospects, because of
it to a group also an employee share owner-
including a unit of ship scheme that would
French insurer AXA link pay to performance.
and Canada’s Caisse des The new owners plan to
Depots du Quebec. take the company public in
More than half the about three years after
deal’s value, or €1.3bn, planned bolt-on acquisi-
was financed by debt, tions in northern Europe,

Team Up, Get Cooking, sources said. CD&R pro-

vided about €400m of
equity.
said a person familiar with
the matter.
Spie chief executive
Build Better Lives The deal is the
biggest of a recent string
Gauthier Louette (pic-
tured) said in March he
of private equity invest- favoured an IPO for the com-
ments in France and is the pany in the long run.
For all who enjoy cooking , novice to
talented, Big City Cook is the ideal challenge
Heats kick off 11th September 2011
Chemical maker
th
thelordmayorsappeal.org.uk/cook
elordmayorsappeal.org.uk/cook
020 7520 0425
Ashland buys ISP
Enter your trio Ashland also makes chemicals and
▲

INDUSTRIALS
materials for the packaging and water
of chefs now! SPECIALTY chemicals maker Ashland
has struck a deal to buy privately held
purification industries.
In buying New Jersey-based ISP,
Kindly sponsored by International Specialty Products for Ashland is betting that consumer
$3.2bn (£1.9bn) as part of a plan to bol- demand for pharmaceuticals, skin
Official Media Par tner
ster its strong roster of products for creams, hair gels and cosmetics will
the skin care, drug and energy sectors. only continue to grow.
Ashland, along with larger rivals The deal is a windfall for the family
Dow Chemical and BASF, has long of Samuel Heyman, a hedge fund
The Thomas Coram
Coram Foundation
Foundation ffor
or
o Children (registered charity
charity no.
no. 312278) was
was established
established by
by Royal
Royal Char
Charter
ter in 1739. RedR UK is registered charity
charity no.
no. 1079752.
focused on the specialty chemical sec- manager who spun off International
tor, which offers high margins and Special Products from roofing manu-
tends to be resilient during recessions. facturer GAF Materials in the 1990s.
CITYA.M. 1 JUNE 2011
CHINESE DROUGHTS FORCE UP FOOD PRICES
DROUGHTS in China have placed even greater upward pressure on food prices, provoking a
dilemma for the Chinese authorities, as they seek to control inflation. Pork prices have
jumped in particular, further inflated by strong demand from May’s holidays. Food prices
account for about a third of China's consumer price index. Slower economic growth is set to
test the central bank’s appetite for monetary tightening.
Ireland set for
one more year
of recession
▲
IRELAND ECONOMY
IRELAND will emerge from recession
in 2012, after four straight years of
economic contraction, a report from
Ernst and Young claimed yesterday.
The Republic’s economy will shrink
by 2.3 per cent this year, worse than
previous forecasts, the report said.
The recovery is expected to begin
with 1.1 per cent growth next year
and 2.2 per cent growth in 2013.
While exports from Ireland contin-
ue to boom in response to global
demand, domestic activity remains
weak, the report noted.
Picture: REUTERS
Japanese industry
starts to fight back
JAPAN ECONOMY
JAPAN’S industry fought back in April
after the devastating earthquake and
tsunami the previous month, several
data releases have shown.
Industrial output and manufactur-
ing activity have recovered from
record losses in March, yet Japan still
faces an upward climb, with unem-
ployment rising to 4.7 per cent last
month – high by Japanese standards.
Car production collapsed by 60 per
cent last month, data from the
Japanese car manufacturers’ associa-
tion revealed yesterday.
House prices
in London hit
a 3-year high
HOUSING
▲
BY JULIAN HARRIS
HOUSE prices in London have
jumped to their highest level since
January 2008, figures from the Land
Registry revealed yesterday.
The average home in the capital
cost £352,187 in April, up three per
cent from the previous month.
Prices were up by 0.8 per cent
across the UK, yet remained 1.3 per
cent below the same time last year.
“London is defying the dip in
house prices elsewhere in the UK,”
said Peter Rollings of estate agent
Marsh and Parsons.
“Prices in London have gone up by
five per cent this year and with limit-
ed supply and huge demand, we
believe this trend will continue,”
Rollings added.
Nonetheless, industrial output
sprung back by rising one per cent in
April, after March’s record fall, official
data showed -- a sign that companies
are mending broken supply chains.
Meanwhile, a purchasing managers’
index for the factory sector returned
to growth for April, measuring 51.3,
from 45.7 in April.
Household spending was three per
cent down compared to April last year,
but the pace of decline slowed marked-
ly from March’s record 8.5 per cent
record annualised fall.
BORIS SCHLOSSBERG: P19
Prices in London will rise two per
cent per annum faster than in the
rest of the UK, a separate report from
the Centre for Economic and
Business Research claimed yesterday.
The average house price across the
country stands at £163,083, accord-
ing to the Land Registry data.
In the north east prices are down
8.1 per cent from April 2010, the
sharpest dip out of all the UK’s
regions. An average home in the
north east now costs £103,295,
according to the data.
The number of UK houses sold in
February of this year dropped by 10
per cent compared to a year ago, the
Land Registry said.
However, the number of proper-
ties sold for over £1m increased from
399 in February 2010 to 454 this
February, a 14 per cent rise.
Inflation goes up in OECD
yet slows across Eurozone
▲
EUROZONE ECONOMY
INFLATION has hit a 30-month high
across member states of the
Organisation for Economic Co-opera-
tion and Development (OECD), the
group revealed yesterday, despite a
slight easing of prices in the Eurozone.
Consumer price inflation edged up
to 2.9 per cent for the OECD in April,
from 2.7 per cent in March, reaching
its highest level since October 2008.
The figure is extremely close to the
2.8 per cent reading for Eurozone
inflation in the same month. Yet a
“flash” estimate of Eurozone prices in
May showed a small reduction in the
rate, to 2.7 per cent.
Economics 17
NEWS | IN BRIEF
German unemployment declines
Unemployment in Germany has dropped
every month for almost two years, it
emerged yesterday. The jobless rate
declined to seven per cent this month,
the lowest rate since records began in
1991. However, the rate of decline was
slower than expected by many econo-
mists, down by just eight thousand on
the month.
Canadian Bank sounds hawkish
Canadian interest rates were held at one
per cent yesterday, yet a notably hawk-
ish statement from the central bank
drove the Canadian dollar and short-
term bond yields higher as traders
increased bets on rate hikes later this
year. The comments suggest that tight-
ening is not immediately on the cards,
but should be expected later in the year.
Swiss GDP growth disappoints
The Swiss economy grew slower than
expected in the first-quarter, hit by
lower investment and consumption,
although exports proved robust in the
face of a strong Swiss franc. Growth
came in at 0.3 on the previous quarter,
an annual expansion of 2.4 per cent.
India’s boom records slowdown
India’s economy grew by a slower-than-
expected 7.8 per cent in the March quar-
ter from a year earlier, government data
revealed yesterday. Economists had
expected expansion of more than eight
per cent.
“We suspect that the decline was
largely down to lower energy prices
and the unwinding of the ‘late Easter
effect’ – which led to a surge in infla-
tion in the leisure and entertainment
sector last month,” commented ING’s
Martin van Vliet.
“Eurozone headline inflation is set
to stay well above two per cent in the
remainder of this year, as energy and
food prices continue to have an
upward impact on consumer prices.”
Meanwhile, the unemployment rate
across the Euro area held stubbornly
at 9.9 per cent in April, separate data
showed. Spanish unemployment fig-
ures are expected this week.

 

 
    

  


 
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 18 News CITYA.M. 1 JUNE 2011

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

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

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS l Ericsson ANALYSIS l Tate & Lyle ANALYSIS l GlaxoSmithKline

100
sek
91.30 630 620.50 1,350 1,320.00
31 May p
31 May
p 31 May
620
90 1,330

610
1,310
80
600
1,290
3 May 10 May 17 May 24 May 3 May 10 May 17 May 24 May
70
18 Mar 7 Apr 27 Apr 17 May

ERICSSON TATE & LYLE GLAXOSMITHKLINE

UBS rates the telecommunications company a “buy” and has a 12-month
target price of $16.04 (£9.72), up from $15.24. The broker has raised its
earnings forecasts by four to six per cent for 2012 onwards and has raised
its capital expenditure forecasts to around four per cent a year on the back
of new broadband technology. The broker also notes the firm is strongly
positioned to outperform in 2012, following recent contract wins.
Morgan Stanley rates the food producer “overweight” with a target price
of 630p following full-year results. The broker sees potential for the compa-
ny as it progresses away from bulk ingredients activities towards specialty
food ingredients, and now predicts sales growth of five per cent. But the
broker adds that the share price momentum relies on Tate & Lyle delivering
accelerated growth.
Goldman Sachs has downgraded the pharmaceutical company from “neu-
tral” to “sell” and has lowered its target price by 130p to 1,110p as it
expects the stock to revert to the mean for the sector. The broker has cut
its earnings per share forecast to three per cent below consensus, reflect-
ing in part the generic competition for Lovaza, the prescription fish oil cap-
sule, and asthma treatment Advair.

Banks help FTSE to end May US rallies on hopes

on a high but fear still reigns of Greek debt plan
THELONDON four per cent in the last week, some
are concerned that this is quite far
enough for now,” said Yusuf Heusen,
Matthey found support ahead of
results tomorrow, rising 4.6 per cent.
“We expect 2011 to be Johnson THENEW YORK shot up 128.21 points, or 1.03 per cent,
to 12,569.79. The Standard & Poor’s 500
Index gained 14.10 points, or 1.06 per

REPORT senior sales trader, at IG Index.

Banks were higher as Europe
stepped up efforts to draft a second
bailout package for Greece.
Matthey's best year so far,” RBS said in
a note, adding it sees margins in the
second-half of 2011 at 16.2 per cent, up
REPORT cent, to 1,345.20. The Nasdaq
Composite Index rose 38.44 points, or
1.37 per cent, to 2,835.30.
about 40 basis points compared to the For May, the Dow lost 1.9 per cent

B W
ANKS and energy stocks, buoyed
by hopes of a second bailout for
Greece, helped Britain’s FTSE
100 higher yesterday, but traders
remained concerned about buying
momentum in the short-term.
“Uncertainty for the near term out-
look still remains bearish until the
markets can pick up positive momen-
tum and clear hurdles to give the bulls
a chance to see higher prices for June,”
Sandy Jadeja, chief technical analyst at
City Index said.
The FTSE 100 closed up 51.12 points,
or 0.9 per cent, at 5,989.99, but drifted
away from a session high of 6,009.98.
The index fell 1.3 per cent in May.
“Although the first few days of June
look positive it will be the closing
prices for the week ahead that may
provide a clue for the monthly out-
look,” Jadeja said, warning the FTSE
had formed a double top at around
6,100, signalling the potential for fur-
ther declines.
“Of course, if there’s one lesson we
have learnt over the past 12 months
about the sovereign debt crisis, it is
that it does have a tendency to rear its
ugly head repeatedly, and with shares
in London bouncing back by around
Standard Chartered rose 1.4 per
cent as Nomura upgraded the bank to
“buy”.
But Lloyds retreated 1.4 per cent,
with traders citing concerns over the
bank placing its bonus scheme under
review, potentially driving away the
bank’s top talent.
Traders also said there were worries,
sparked by newspaper reports, of a
return to high-risk mortgage lending,
raising fears of the potential for anoth-
er credit crunch scenario.
The euro climbed to a three-week
high against the dollar, as European
officials met in Vienna to sketch out
options for another bailout package.
The weak dollar lifted crude oil
prices, which boosted integrated oils,
but BG Group fell 0.3 per cent, as
Credit Suisse cut its target price for the
firm.
Plumbing supplies firm Wolseley
climbed 3.4 per cent, ahead of its trad-
ing update today. The company was
also boosted after the Sunday Times
reported the plumbing supplies firm
has put three of its UK businesses –
Build Center, Electric Center and
Encon – up for sale.
Industrial conglomerate Johnson
first-half of 2011.
Broker support helped lift Experian
3.1 per cent, as Credit Suisse raised its
rating for the credit checking firm to
“outperform” from “neutral”.
Bullish broker comment buoyed
motor insurer Admiral Group. The
firm’s shares rose 2.1 per cent as
Collins Stewart repeated its “buy” rat-
ing following last week’s decision by
the UK regulator against a total ban on
referral fees.
Serco rose 3.5 per cent after the
London-based outsourcer agreed to
buy Indian private sector outsourcing
company Intelenet for up to £385m,
which brokers view as expensive but
strategically significant.
ANALYSIS l FTSE 100
6,100
5,989.99
31 May
6,000
5,900
5,800
10 May 17 May 24 May
ALL St bulls took the upper
hand with a one per cent
rally yesterday as hopes for a
new plan to deal with
Greece’s debt crisis relieved some
investor worry, but grim economic
data suggested more hurdles ahead as
the S&P 500 closed out its worth
month since August.
Stocks rebounded late in the session,
nearing levels that were approached at
the open, but later fell following lack-
lustre data on US Midwestern factory
demand and consumer confidence.
European officials were mulling
options for a second bailout package
for Greece, with private-sector partici-
pation still under discussion. Germany,
which was resisting extra funding, may
drop its push for an early rescheduling
of Greek bonds, the Wall Street Journal
reported.
Rising expectations for a package
pushed the dollar down against the
euro, helping lift commodity prices
and materials stocks. Crude futures
rose 2 per cent while Chevron gained
1.6 per cent to $104.91 and Alcoa added
2 per cent to $16.81. The S&P energy
index added 1.04 per cent.
The Dow Jones industrial average
and the Nasdaq fell 1.3 pe rcent. The
S&P fell 1.4 per cent, its worst month
since August, when the US Federal
Reserve announced the second round
of its quantitative easing programme.
US single-family home prices
dropped in March, below their 2009
low, according to the S&P/Case-Shiller
composite index of 20 metropolitan
areas. A separate report showed an
unexpected drop in May consumer
confidence, while the Institute for
Supply Management-Chicago said busi-
ness activity in the US Midwest grew
much less than expected in May.
Tech shares also lifted the market,
with the S&P information technology
index up 1.6 per cent. Cisco Systems
was one of the Dow’s top gainers, up
2.1 per cent at $16.80, while Apple
climbed 3.1 per cent to $347.83 on the
news that Steve Jobs, its chief executive
who has spent months on medical
leave, would open an annual develop-
er’s conference.
US-listed shares of Nokia slumped
14.4 per cent to $7.02 after it aban-
doned hope of meeting key targets just
weeks after setting them. The stock
dropped on its heaviest volume since
February.
 19

Wealth Management Foreign Exchange |

DOLLAR-YEN IS
FOCUSED ON US Belarus devalues its
JOBS NUMBERS
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
way to hyperinflation
It is hard for market

Y
ESTERDAY, Moody’s threw a bombshell into the
currency market by announcing that it could watchers not to draw
lower Japan’s Aa2 rating in the coming months.
Dollar-yen jumped nearly 100 points as a result
of the news, rising to a high of ¥81.80. In its note, the
comparison with the
ratings agency cited “heightened concern that falter-
ing economic growth prospects and a weak policy
likely Greek endgame,
response would make more challenging the govern-
ment’s ability to fashion and achieve a credible deficit
writes Craig Drake
reduction target.”

Japan’s debt is the largest in the industrialised
world, standing at more than twice its GDP of $5 tril-
lion (£3.03 trillion), and is likely to expand further in
the wake of reconstruction efforts following the nat-
ural disasters in March. Analysts are worried that,
with an ageing population, Japan will simply find its
debt load unsustainable.
However, those concerns have been voiced many
times before and, much to the consternation of yen
bears, they have not come to pass. Japan continues
to generate a surplus of capital and is therefore able
to finance its fiscal deficits internally. Eventually, the
demographics of the country and the exponential
increase in its debt will catch up with its currency,
but for now dollar-yen continues to trade primarily
off interest rate differentials.
That’s why this week all eyes in the currency mar-
ket will be focused on the US non-farm payrolls
report due Friday at 1.30pm. Market consensus is for
an increase of 194K, slightly lower than the prior
month’s reading of 244K. However, if the number
surprises to the upside it could provide further lift to
dollar-yen. I believe that the Federal Reserve will
need to see at least three consecutive 200K+ months
of job growth in order to seriously consider a rate
hike. If the US employment data proves robust for a
second month running, the market will begin to price
in the possibility of a US rate hike before the year
end. That dynamic is likely to fuel a much more sus-
tainable rally in dollar-yen than any ratings agency
downgrade. If the US labour condition continues to
show improvement, dollar-yen could test the ¥85.00
level as the summer progresses.
L
AST week, Belarus demonstrated
very clearly what happens to a coun-
try when it does not address its
deficit, does not rein in spending
and tries to mask its problems with state
intervention. Overnight, the National
Bank of Belarus devalued the Belarusian
rouble by 56 per cent. The devaluation
resulted in an immediate 24 per cent rise
in fuel prices, and shoppers queuing
down the street as shelves emptied of
food.
Those with Belarusian-denominated
debt saw their liabilities halved and those
holding their money in gold or silver saw
their relative purchasing power double.
However, the rest of the country is up the
proverbial creek without a paddle.
The former Soviet state had previously
been granted a $3bn loan by Russia, with
the country being pushed to sell $7.5bn of
assets in order to plug some holes in the
country’s economy. In response to this
insistence, President Alexander
Lukashenko warned that Belarus “will
not throw anything to anybody for noth-
ing.”
The state’s economy collapsed with the
end of the Soviet Union, which had pro-
vided the country with a market for
exporting farm materials, textiles and
agricultural machinery. When he came to
power in 1994, elected on a platform of
Brownonomic market socialism,
Lukashenko re-nationalised companies
and infrastructure and put in place price
and currency controls.
As a country that has been in a vast,
rigid supranational political and mone-
tary union – reliant on bailouts from
neighbours to stay afloat – market watch-
ers observing the plight of Belarus will
Following Belarus off the cliff
inevitably draw comparisons with Greece,
as it weighs up plans to leave the
European single currency experiment
and return to the drachma. According to
investment managers Charles Stanley:
“Critically, in our view, the threatened
fire-sale of state assets will be the warning
shot fired at each country in the devel-
oped world considering following
Belarus’ example.” They continue: “The
world is beginning to wake up to the real-
isation that there exists simply insuffi-
cient cash flow to cover the interest
payments on a debt pile, in both the pub-
lic and private sectors, a pile that contin-
ues to rise at an astronomic rate even as
the global economy shows signs of slow-
ing from the centrally planned and
‘steroid-infused’ post-Great Recession
recovery.”
ANALYSIS l Belarusian rouble
0.035
US cents
0.030
0.025
0.020
0.020
28 May
0.015
1 May 9 May 16 May 23 May
Picture: ALAMY
As is the case for every country that
tries to devalue its currency, Belarus is on
the road to hyperinflation. According to
Alexei Moiseev, chief economist at VTB
Capital: “Unless Belarus heeds Russia’s
call for mass privatisation of state assets,
it is headed for hyperinflation, mass
unemployment and a shutdown of pro-
duction.”
As the Greek finance minister in
Athens considers his country’s monetary
future, he should look 1,500 miles north
to Minsk to see the effects of long term
dependence on bailouts and bond auc-
tions. But as George Papaconstantinou
tries to sail between Scylla and Charybdis
– between leaving the euro and remain-
ing in the eye of the Eurozone storm – he
knows that at some point his rapidly sink-
ing ship may be wrecked in the squall.

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 20 Wealth Management | Foreign Exchange
Bitcoins are
It is an uncertain
bet to tie your
money up online
Picture:
GETTY
rising fast –
but risky too
Governments will not let an alternative
currency compete, writes Philip Salter
R
ICKARD Falkvinge, the Swedish
IT entrepreneur and founder of
the first Pirate Party, has
Forex & CFD Trading. Worldwide. announced he is piling all his
money into bitcoins, a digital curren-
cy that is attracting a lot of online
interest. Although the technology is
groundbreaking and its security sub-
stantial, Falkvinge is nevertheless tak-
ing a huge leap of faith.
Satoshi Nakamoto, a Japanese com-
Focus your Forex trading potential puter programmer, set out his innova-
tive idea for bitcoin in his 2009 paper:
Bitcoin: A Peer-to-Peer Electronic Cash
System. Unlike every previous curren-
cy it doesn’t rely upon a central
authority. It is stored virtually in the
form of a file and digitally transferred.
Once the money supply has reached
21m bitcoins – growing as the net-
work grows – no more will be issued,
thus prohibiting devaluation. Bitcoins
can’t be frozen, tracked or taxed.
GOVERNMENTS LIKE TAX
If bitcoins catch on, all functioning
governments will make them illegal.
This will no doubt be framed as a
move to stem its criminal use.
However, legitimate as these concerns
are, lost tax and monetary competi-
tion will be the principal spurs for
action. In making bitcoins illegal,
their price, which has rocketed over
800 per cent over the last few months,
will plummet, pushing the currency
underground: thus cementing it as
the currency of choice for criminals.
Most people won’t want to hold a
tainted currency which companies
are banned from accepting. Bitcoins
will become largely unusable.
THE TIPSTER
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P
ERIPHERAL Europe, the US budget
impasse and escalating tightening
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barrier. IG Index offers euro-dollar
UK Product
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The Kiwi had a great week against the
dollar and it has not disappointed this
CITYA.M. 1 JUNE 2011
FOR THE HYPERINFLATED
On the other side of the coin, for peo-
ple living in countries where their
governments are worse than crimi-
nals, such considerations won’t apply.
Indeed, it would offer some a cleaner
method of payment than usually
open to them. Bitcoins wouldn’t have
been a bad option for Zimbabweans
who could see where Mugabe’s gov-
ernment was taking them.
IN GOLD WE TRUST
Many savers have turned to the “bar-
barous relic” of gold to counteract
inflation. Relying upon this historical-
ly proven store of wealth is the oppo-
site of tying up wealth in complex
new code. In Nakamoto’s 2009 paper,
he claims: “We have proposed a sys-
tem for electronic transactions with-
out relying on trust.” However, all
stores of wealth rely on trust at some
level and with its complexity and
criminal potential, bitcoins can’t com-
pete with the yellow metal. Buying
bitcoins could be a profitable, if risky,
short-term speculative bet. But you
will have to get out before govern-
ments step in to break up the party.
ANALYSIS l Bitcoin against sterling
6
£
£5.593
4
31 May
2
0
3 Apr 18 Apr 1 May 19 May
week either. Confidence had been hit
hard since the earthquake last February,
but data released has shown around 40
per cent of companies expect their fig-
ures will pick up over the course of the
year. Capital Spreads offers New
Zealand dollar-dollar $0.8235-$0.8239.
The euro recovered against a basket
of currencies yesterday, helped by an
easing of fears over the Greek crisis. The
single currency reached a three-week
high against the yen at ¥117.80 after
Moody’s placed Japan’s debt ratings
under review for a possible downgrade.
Traders are not yet eyeing a return to
the highs of last month, above ¥123, but
are instead looking at a strong support
line dating back to March, which sug-
gests that a possible pullback to around
the ¥116 level could still be on the cards.
Spreadex offers euro-yen ¥117.49-
¥117.53.
Sterling-dollar has been on a one-way
charge from $1.6100 since weak US
data last week saw the dollar come
under pressure. Chartists watching the
four-hour candles yesterday noticed a
bearish outside reversal as it failed to
break $1.6550 resistance and the day
candle was also setting up as a bearish
hammer. A close below $1.6472 would
be a good sell signal for a pull back to
$1.6325. Spread Co offers sterling-dol-
lar $1.6474-$1.6476.
Philip Salter
CITYA.M. 1 JUNE 2011 Wealth Management | Foreign Exchange 21

Yen faces bleak long-term prospects

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

IG INDEX environment. Both the Japanese government HIFX

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

SPREAD CO level of the ¥76.49 to ¥85.50 move at ¥81.

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

FOREX ANALYST PICKS

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

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

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

EUSHARES USSHARES
Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................96.53 2.31 100.65 78.26 3M ........................................................94.38 0.91 97.95 72.72
ALLIANZ ..............................................96.18 1.64 108.85 77.48 ABBOTT LABS ...................................52.25 0.70 54.24 44.59
ALSTOM ..............................................43.02
ANHEUS-BUSCH INBEV ....................41.92
ARCELORMITTAL...............................23.18
1.14
0.69
0.28
45.32
46.33
28.55
30.78
38.37
20.26
."%&
50
.&"463&
46*5*/(
ALCOA ................................................16.81
ALTRIA GROUP ..................................28.06
AMAZON.COM..................................196.69
0.33
0.12
2.56
18.47
28.09
206.39
9.81
19.53
105.80
AXA......................................................14.84 0.31 16.16 10.88 AMERICAN EXPRESS........................51.60 0.47 51.97 37.13
BANCO SANTANDER...........................8.26 0.32 10.23 7.00 AMGEN INC.........................................60.54 1.19 61.53 50.34
BASF SE..............................................64.26 2.34 70.22 40.74 APPLE ...............................................347.83 10.42 364.90 236.78
BAYER .................................................56.95 1.13 59.44 43.27 AT&T....................................................31.56 0.27 31.94 23.88

‚
BBVA......................................................8.12 0.25 10.71 6.75 BANK OF AMERICA ...........................11.75 0.06 16.20 10.91
BMW ....................................................61.48
BNP PARIBAS.....................................54.22
0.65
1.01
65.49
59.93
36.98
40.81
/08 BERKSHIRE HATAW B.......................79.07
BOEING CO.........................................78.03
1.03
1.04
87.65
80.65
69.61
59.48
CARREFOUR ......................................30.78 0.50 41.28 29.83 BRISTOL MYERS SQUI......................28.76 0.29 28.99 22.31
CREDIT AGRICOLE ............................10.62 0.19 12.92 7.87 CATERPILLAR..................................105.80 1.20 116.55 54.89
CRH PLC .............................................15.14 0.29 19.92 11.51 CHEVRON .........................................104.91 1.70 109.94 66.83
DAIMLER .............................................49.11 1.05 59.09 37.03 CISCO SYSTEMS................................16.80 0.34 26.00 16.11
DANONE..............................................50.95 1.06 50.98 41.00 CITIGROUP .........................................41.15 0.18 51.50 36.20
DEUTSCHE BANK ..............................41.42 0.80 51.61 35.93 COCA-COLA .......................................66.81 0.30 68.77 49.47
DEUTSCHE BOERSE .........................54.78 0.20 62.48 46.33

COLGATE PALMOLIVE ......................87.53 1.81 87.58 73.12
DEUTSCHE TELEKOM .......................10.33 0.16 11.38 8.95
& CONOCOPHILLIPS.............................73.22 0.58 81.80 48.06

*.
E.ON.....................................................19.74 0.18 25.54 19.44 DU PONT(EI) DE NMR........................53.30 0.74 57.00 33.73
ENEL......................................................4.77 0.05 4.86 3.42
$"/"3:
8)"3'

„

'&/$)63$)

45
EMC CORP..........................................28.47 0.04 28.73 17.72
ENI .......................................................16.66 0.32 18.66 14.59 -*7&3100-
45

„

106-53:

„
3&(&/5
45
5 EXXON MOBIL....................................83.47 0.84 88.23 55.94
FRANCE TELECOM............................15.90 0.12 17.45 14.01 % GENERAL ELECTRIC.........................19.64 0.20 21.65 13.75
GDF SUEZ ...........................................25.56 0.32 30.05 22.64
& -: GOLDMAN SACHS GRP ..................140.66 2.02 175.34 129.50
GENERALI ASS...................................15.21 0.32 17.05 13.31
888"645*/3&&%$06, *5 / GOOGLE A........................................529.02 8.12 642.96 433.63
IBERDROLA ..........................................6.15
ING GROEP CVA...................................8.38
0.07
0.10
6.50
9.50
4.38
5.86 Terms & Conditions apply. See in store for details. *. 0 HEWLETT PACKARD.........................37.38
HOME DEPOT.....................................36.28
0.42
0.28
49.39
39.38
35.44
26.62
INTESA SANPAOLO .............................1.80 0.04 2.53 1.65 - IBM.....................................................168.93 1.43 173.54 120.61
KON.PHILIPS ELECTR .......................19.28 0.22 26.87 18.86 INTEL CORP .......................................22.51 0.30 23.96 17.60
L'OREAL..............................................87.43 1.46 90.00 74.50 J.P.MORGAN CHASE .........................43.24 0.45 48.36 35.16
LVMH..................................................120.90 2.90 129.05 83.66 WORLD INDICES JOHNSON & JOHNSON.....................67.29 0.52 67.37 56.86
MUNICH RE .......................................106.60 1.55 126.00 98.38 KRAFT FOODS A................................34.97 0.22 35.44 27.59
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................4.75 -1.01 8.49 4.72 MC DONALD'S CORP ........................81.54 -0.08 83.08 65.31
FTSE 100 . . . . . . . . . . . . . . 5989.99 51.12 0.86 S&P 500 . . . . . . . . . . . . . . . 1345.20 14.10 1.06 CAC 40 . . . . . . . . . . . . . . . . 4006.94 64.41 1.63 BOVESPA SAO PAOLO . . 64620.08 666.15 1.04
REPSOL YPF.......................................23.68 0.85 24.90 15.67 MERCK AND CO. NEW ......................36.75 0.54 37.68 31.06
FTSE 250 INDEX . . . . . . . 12060.79 101.99 0.85 NASDAQ COMPOSITE . . . 2835.30 38.44 1.37 SHANGHAI SE INDEX . . . . 2743.47 37.11 1.37 ISEQ OVERALL INDEX . . . 2969.57 13.29 0.45
RWE .....................................................40.53 0.22 59.85 40.01 MICROSOFT........................................25.01 0.25 29.46 22.73
FTSE UK ALL SHARE . . . . 3121.07 26.45 0.85 FTSEUROFIRST 300 . . . . . 1142.18 9.47 0.84 HANG SENG. . . . . . . . . . . 23684.13 499.81 2.16 STI . . . . . . . . . . . . . . . . . . . . 3159.93 19.33 0.62
SAINT-GOBAIN ...................................45.93 1.23 47.64 27.81 OCCID. PETROLEUM.......................107.85 1.28 117.89 72.13
FTSE AIM ALL SH . . . . . . . . 890.78 14.27 1.63 NIKKEI 225 AVERAGE . . . . 9693.73 188.76 1.99 S&P/ASX 20 INDEX . . . . . . 2831.60 24.50 0.87 IGBM . . . . . . . . . . . . . . . . . . 1066.37 22.52 2.16
SANOFI................................................55.02 0.93 56.50 44.01 ORACLE CORP...................................34.22 0.52 36.50 21.24
DOW JONES INDUS 30 . . 12569.79 128.21 1.03 DAX 30 PERFORMANCE. . 7293.69 133.39 1.86 ASX ALL ORDINARIES . . . 4788.90 42.80 0.90 SWISS MARKET INDEX. . . 6554.71 83.91 1.30
SAP ......................................................43.17 0.62 46.15 34.13 PEPSICO .............................................71.12 0.72 71.89 60.32
SCHNEIDER ELECTRIC ...................114.60
SIEMENS .............................................93.00
3.80
2.61
123.65
99.39
79.35
70.02
COMMODITIES CREDIT & RATES PFIZER ................................................21.45
PHILIP MORRIS INTL .........................71.75
0.52
1.23
21.45
71.75
14.00
42.94
SOCIETE GENERALE.........................41.24 1.00 52.70 29.71 LON GD ONCE FIX AM...........1537.00 12.00 TIN CASH.............................27040.00 0.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.250 0.00 PROCTER AND GAMBLE ..................67.00 0.80 67.72 58.92
TELECOM ITALIA..................................0.99 0.02 1.16 0.88 SILVER LDN FIX AM ..................38.40 0.30 ZINC CASH ............................2243.00 0.00 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 QUALCOMM INC ................................58.59 1.24 59.84 31.63
TELEFONICA ......................................16.88 0.27 19.69 14.83 MAPLE LEAF 1 OZ ....................57.00 1.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 SCHLUMBERGER ..............................85.72 1.01 95.64 51.67
BRENT SPOT INDEX ................114.76 -0.33 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.03
TOTAL..................................................40.03 0.59 44.55 35.66 LON PLATINUM AM................1821.00 40.00 TRAVELERS CIES ..............................62.08 0.56 64.17 47.77
SOYA .....................................1379.75 0.00 BoE IR 6 months ............................0.545 0.00 European repo rate .........................0.870 -0.025
UNIBAIL-RODAMCO SE...................156.70 3.30 159.30 108.66 LON PALLADIUM AM ...............775.00 21.00 UNITED TECHNOLOGIE ....................87.77 1.44 90.67 62.88
COCOA ..................................2969.00 0.00 LIBOR Euro - overnight ..................0.910 0.04 Euro Euribor ....................................1.084 -0.01
UNICREDIT............................................1.58 0.04 2.24 1.46 ALUMINIUM CASH .................2597.00 0.00 LIBOR Euro - 12 months ................2.106 0.00 The vix index ...................................16.12 0.14 VERIZON COMMS ..............................36.93 0.26 38.95 25.25
UNILEVER CVA...................................22.68 0.14 24.11 20.68 COPPER CASH ......................9150.00 0.00 COFFEE...................................263.70 0.00 WAL-MART STORES..........................55.22 0.52 57.90 47.77
LIBOR USD - overnight...................0.128 0.00 The baltic dry index ........................1.474 0.00
VINCI....................................................44.84 1.33 45.48 33.01 LEAD CASH ...........................2540.00 0.00 KRUG.....................................1593.40 5.00 LIBOR USD - 12 months .................0.729 0.00 Markit iBoxx...................................220.40 0.01 WALT DISNEY CO ..............................41.63 0.11 44.34 30.72
VIVENDI ...............................................19.40 0.44 22.07 16.25 NICKEL CASH ......................23120.00 0.00 WHEAT ....................................189.75 -7.00 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................95.06 0.00 WELLS FARGO & CO.........................28.37 0.23 34.25 23.02
 Lifestyle
23

| Motoring WORDS BY
RYAN BORROFF

The Juke: a crossover with class

Nissan’s new sporty SUV for
the city is surprisingly good, if
lacking slightly in engine power

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

CAR TALK BY RYAN BORROFF

VAUXHALL LAUNCHES GREENEST INSIGNIA TO DATE
Vauxhall has introduced its greenest Insignia model yet. The new
ultra-low emissions ecoFLEX diesel Insignia is aimed at commuters
and business users and its 2.0 CDTi engine is cleaner than its prede-
cessor. Its CO2 emissions are 115g compared to 129g for the outgo-
ing model.
LEXUS WINS AGAIN FOR CUSTOMER SATISFACTION
For the 11th year running, Lexus has come out top for customer sat-
isfaction. Lexus was named top manufacturer in the J D
Power/What Car? UK Vehicle Ownership Satisfaction Study and its
IS saloon achieved the highest overall score. Meanwhile, its RX SUV
was ranked third overall. This year’s study canvassed the opinions of
almost 17,000 UK car owners.
JOHNSON INTRODUCES ELECTRIC CHARGING POINTS
London Mayor Boris Johnson has launched London’s electric vehicle
charging scheme called Source London. The scheme is targeted to
deliver at least 1,300 public charging points by 2013, as part of
Johnson’s plan for London to become the electric vehicle capital of
Europe. Members can use any of the charging points for an annual
membership of £100.
 24 Lifestyle | TV& Games CITYA.M. 1 JUNE 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Waterloo Road: BBC
News
8.30pm CHOICE Life of Riley
9pm The Apprentice
10pm BBC News
10.25pm Regional News
10.35pm The National Lottery
Wednesday Night Draws 10.45pm
Not Going Out 11.15pm FILM
Forces of Nature. 1999; National
Lottery Update 1am Sign Zone: See
Hear 1.30am Sign Zone: Watchdog
2.30am Sign Zone: Country Tracks
3.25am Sign Zone: The British at
Work 4.25am-6am BBC News
6pm Great British Menu
7pm Escape to the Country
7.30pm Springwatch 2011
8.30pm Springwatch
Unsprung 2011
9pm Wonderland – The Men
Who Won’t Stop Marching
10pm The Apprentice: You’re
Fired!
10.30pm Newsnight: Weather
11.20pm Stewart Lee’s
Comedy Vehicle
11.50pm Louis Theroux: Miami
Mega Jail
12.50am French Open Tennis
1.50am BBC News
4.25am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale
7.30pm Britain’s Got Talent
9pm Coronation Street
9.30pm Britain’s Got Talent
Results
10pm ITV News at Ten
10.30pm London News
10.35pm Cumbria, One Year
On
11.35pm Long Lost Family
12.30am The Zone; ITV News
Headlines
2.35am FILM Boogeyman: Horror,
starring Barry Watson. 2004.
4am-5.30am ITV Nightscreen
6pm The Simpsons 6pm Home and Away
6.30pm Hollyoaks 6.25pm OK! TV
7pm Channel 4 News 7pm 5 News at 7
7.55pm 4thought.tv 7.30pm Pawn Stars: 5 News
8pm Diagnosis Live from the Clinic Update
9pm 24 Hours in A&E 10pm 8pm Giant Animal Moves: 5
CHOICE Desperate Housewives
11.05pm The Big Bang Theory
News at 9
11.35pm The Big Bang Theory 9pm CHOICE NCIS
12am Music on 4: The Album Chart 10pm Law & Order: Criminal
Show: Spotlight 12.15am Music on Intent LIFE OF RILEY
4: The Album Chart Show: Cee Lo 10.55pm Law & Order: Special BBC1, 8.30PM
12.45am Music on 4: Mercury Prize Victims Unit 11.55pm Poker: Aussie Jim’s ex-wife invites the children to
Sessions 1.05am FILM Riding in stay with her. Comedy, starring
Millions 12.50am SuperCasino
Cars with Boys. 2001. 3.15am The 4am The Family Recipe 4.05am Caroline Quentin, Neil Dudgeon and
Sex Education Show: Am I Normal? Michaela’s Wild Challenge 4.30am Lucinda Dryzek. Last in the series.
4.10am Hill Street Blues 5am Michaela’s Wild Challenge 4.55am
Wogan’s Perfect Recall County Secrets 5.10am Wildlife
5.25am-6.10am Countdown SOS 5.35am-6am House Doctor

SKY SPORTS 1 Tour Weekly 2am Golf 4am-5am SKY LIVING 12am My Name Is Earl 1am The DISCOVERY HOME &
SATELLITE & CABLE

7pm Live Twenty20 Cup Cricket
10.30pm FIFA Futbol Mundial
11pm Football’s Greatest 11.30pm
Total Rugby 12am European Tour
Weekly 12.30am Twenty20 Cup
Cricket 2.30am Boots ’n’ All
3.30am Football’s Greatest
4am-6am Twenty20 Cup Cricket
SKY SPORTS 2
7pm Total Rugby 7.30pm FIFA
Futbol Mundial 8pm Boots ’n’ All
9pm International Judo World
Circuit 9.30pm Total Rugby 10pm
Boots ’n’ All 11pm Bowls 12am
NFL: Total Access 1am FIFA
Futbol Mundial 1.30am-2.30am
Trans World Sport
SKY SPORTS 3
7pm Inside the PGA Tour 7.30pm
European Tour Weekly 8pm Golf
10pm Cage Fighter 10.30pm
Trans World Sport 11.30pm Cage
Fighter 12am Poker 1am Inside
the PGA Tour 1.30am European
Bowls
BRITISH EUROSPORT
7pm Wednesday Selection
7.10pm Show Jumping 8.10pm
Riders Club 8.15pm PGA Tour
Golf 9.15pm European Tour Golf
9.45pm Ladies European Tour
Golf 9.55pm Golf Club 10pm
Yacht Club 10.05pm Wednesday
Selection 10.15pm Olympic
Magazine 10.40pm-12.45am
French Open Tennis
ESPN
7pm ESPN Kicks: Extra 7.15pm
ESPN Press Pass 7.45pm NBA
Tonight 8.15pm Russian Premier
League Review 8.45pm AFL
Review Show 9.45pm ESPN
Kicks: Extra 10pm Premier League
World 10.30pm UFC 1.30am
ESPN Press Pass 2am Premier
League World 2.30am NBA
Tonight 3am-6am Major League
Baseball
7pm CSI: Crime Scene
Investigation 8pm Four Weddings
Revisited 9pm Bones 10pm Grey’s
Anatomy 11pm Criminal Minds
12am CSI: Crime Scene
Investigation 1.50am Ghost
Whisperer 3.30am Charmed
4.20am Nothing to Declare
5.10am-6am Maury
BBC THREE
7pm Top Gear 8pm Great Movie
Mistakes 9pm How Drugs Work
10pm FILM Kill Bill: Vol One.
Martial arts thriller, starring Uma
Thurman. 2003. 11.45pm Family
Guy 12.30am How Drugs Work
1.30am American Dad! 3.15am
Great Movie Mistakes
4.15am-5.15am Secrets of the
Superbrands: Food
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM Volcano 1997. 11pm
Rude Tube: Ultimate Champions
Event 1.50am Ugly Betty 2.35am
The Event 3.15am Heartland 4am
Reaper 4.45am-6am Switched
HISTORY
7pm Heir Hunters: The detectives
look for the heirs to a £200,000
fortune. 8pm Ax Men 10pm How
the States Got Their Shapes: How
America’s state lines were formed.
12am Ax Men 2am Deep Wreck
Mysteries 3am Heir Hunters 4am
The Universe 5am-6am Ax Men
DISCOVERY
8pm How It’s Made 9pm Britain’s
Toughest Cops 10pm I Almost
Got Away with It 11pm Disaster
Eyewitness 12am Bear Grylls:
Urban Survivor 1am Deadliest
Catch 2am Future Weapons 3am
Greatest Tank Battles 3.50am
World War Two in HD Colour
4.40am Clash of the Dinosaurs
5.30am-6am Destroyed in
Seconds
HEALTH
7pm Bringing Home Baby 8pm
Little People, Big World 9pm
Untold Stories of the ER 10pm
Hospital Sydney 11pm A&E: DESPERATE HOUSEWIVES
Outback 11.30pm Chopper Rescue CHANNEL4, 10.00PM
12am Untold Stories of the ER Susan develops a gambling habit,
1am Hospital Sydney 2am A&E: and Felicia moves back into the
Outback 2.30am Chopper Rescue neighbourhood. Guest starring
3am Little People, Big World 4am Gregory Itzin.
A Baby Story 5am-6am Bringing
Home Baby
SKY1
8pm Emergency with Angela
Griffin 9pm Brit Cops: Zero
Tolerance 10pm Fringe 11pm The
Chicago Code 12am Drug Wars:
DEA 1.45am Stargate SG-1
3.15am The 4400 4am The Top NCIS
Ten Show 4.10am Secret Life of CHANNEL5, 9.00PM
Suburbia 4.35am Bite Size DiNozzo becomes obsessed with
Brainiac 4.45am Secret Life of finding a woman whose brother has
Suburbia 5.10am-6am Don’t been murdered, while the team
Forget the Lyrics searches for the man’s killer.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
34 16 27 19 8 7 28 33 
30 10
 
24 28
Place the numbers from 1 to 9 in each empty cell so that each 37  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 15 17
13
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 21 3 14  
above or to the left of it. 11 16
You can only use the digits 1-9 9 23   
   and you must not use the
17
30 
same digit twice in a block. 32 19 35 17
 The same digit may occur 39 7   
12
   more than once in a row or
column, but it must be in a
4 10
11 14
10

24 18
 separate block.
15 
14 29
    22 20


   ACROSS DOWN
1 Moral principles (6) 1 Apart from (6)
 
    WORDWHEEL R I
6 Public speaker (6)
7 Rough with small
waves (6)
2 Fairground game of
ring throwing (4-2)
3 Asian plant widely
Using only the letters in the Wordwheel, you have
   ten minutes to find as many words as possible,
I E 9 Face veil worn by cultivated for its
oily beans (4)
Muslim women (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters C 11 Buddy (3) 4 German composer
(1685-1750) (4)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
P C 13 Tutor’s favourite
student (8,3) 5 Gives to a charity
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
P E 16 Group which released or good cause (7)
8 Large snake (6)
the album Twilight
QUICK CROSSWORD 9 7 8 9 2 7 2 Of The Innocents 10 One who rides
C O M E T B E A K S
3 2 1 5 7 4 3 1 SUDOKU         
in 2007 (3) breaking waves (6)
A A B L W
1 3 9 8 6 8
         17 Love affair (7) 12 Spray can (7)
9 4 6 6 3 8 9 7
R U S T L E V I S A
4 3 5 4 2 3 5 1
         20 Relating to or similar 14 Verdigris (6)
N I T E E B
A U N T T A S T Y 4 9 1 5
         to bears (6) 15 Steal something (6)
WORDWHEEL
        
L U P E R U B 8 4 2 3 1 9 8 4 21 Fin on the back 18 As well (4)
O S I E R S T A R         
9 5 7 8 6 2 4 1 of a fish (6)
M M A O T I          19 Reduce the population
A Q U A F E L I N E
1 9 2 1 4 3 The nine-letter word was 22 Discover the site of (6)
S G F E F 6 2 5 3 6 7 9 8          of (animals) by selective
T W E E D B A L L S 9 7 1 4 1 7 2
OVERSPENT          slaughter (4)
 Sport
Spectacular Scholes retires
▲
FOOTBALL
BY FRANK DALLERES
MANCHESTER UNITED’S Paul Scholes,
hailed by fellow professionals as one
of the finest midfielders of his genera-
tion and a rare one-club man, yester-
day confirmed his retirement from
the game.
Scholes, whose last appearance
came in Saturday’s Champions League
final defeat to Barcelona, made his
debut in 1994 and went on to accumu-
late 17 major titles, the equivalent of
one every year, during United’s most
successful era.
The 36-year-old, who came through
the youth ranks with David Beckham
and the Neville brothers, is set to stay
at Old Trafford as part of Sir Alex
Ferguson’s coaching staff.
Scholes said in a statement: “This
was not a decision I have taken lightly
but I feel now is the right time for me
to stop playing.”
World Cup-winning former France
captain Zinedine Zidane once called
Scholes “undoubtedly the finest mid-
fielder of his generation”, while
Barcelona and Spain star Xavi
described him as “a spectacular player
who has everything”.
Scholes won 66 England caps before
retiring from international football in
August 2004.

26&6&4
"3&
'03.*/(
Investec Ladies’ Day – Friday 3rd June*
Investec Derby Day – Saturday 4th June
Featuring the world’s greatest flat race
*Queen’s Stand tickets on Ladies’ Day are sold out.
FINEST OF HIS GENERATION: SCHOLES
1992: Scholes, Beckham and the Nevilles
help Man Utd win FA Youth Cup
2004: Reaches last eight of Euro 2004 but
quits England duty for good weeks later
26*$,
%$
“THERE ARE MORE PILLS INSIDE
ME NOW THAN OZZY OSBOURNE”
INJURED MURRAY BATTLES BACK
FROM THE BRINK AT FRENCH OPEN: P26
1994: Makes senior debut versus Ipswich,
ends season with five goals in 17 games
2008: Hits winner against Barca to make
Champions League final, which Utd win
%$
Hurry, book now
0844 579 3004
epsomdowns.co.uk
1997: Scores on first England start
against Italy at Le Tournoi in France
2011: Makes last appearance in defat to
Barcelona Pictures: ACTION IMAGES/PA
25
Injury scare
for Derby
fave Carlton
▲
HORSE RACING
BY FRANK DALLERES
THE QUEEN’S Carlton House, the
favourite for the Investec Derby,
remains poised for Saturday’s Epsom
classic despite an injury scare.
The colt was sent for X-rays yester-
day after concerns were raised follow-
ing a workout on Sunday, but is still
expected to take part in the world’s
most famous flat race.
Her Majesty’s racing manager John
Warren said: “Following a routine can-
ter [on Sunday], Carlton House was
found to have a small amount of fill-
ing in his near-fore joint at evening
stables last night.
“As a result precautionary X-rays
were taken this morning [yesterday]
which revealed no abnormalities and
we remain hopeful that he is on target
for the Investec Derby on Saturday.”
Carlton House has been the book-
makers’ favourite for the race since
impressing at the Dante Stakes at York
three weeks ago. The setback saw him
drift to 3-1 on betting exchanges at
one point yesterday.
 26 Sport
FA attempt to
delay election
Rooney’s thunder was stolen by Messi in
Rooney: Leo and demand
Saturday’s final Pic: ACTION IMAGES
would find it
tough here Fifa reforms
FOOTBALL
▲
MANCHESTER UNITED striker Wayne
Rooney believes it would be hard for
his side’s Champions League final
nemesis Lionel Messi to prosper in
the Premier League in the same way
he does in La Liga for Barcelona.
Messi orchestrated United’s demise
on Saturday at Wembley scoring the
second goal, his 53rd of the season in
all competitions, in a 3-1 win which
helped Barcelona claim their second
European crown in three season’s at
the Old Trafford club’s expense.
Asked if Messi could dictate games
in the England as he does in Spain,
Rooney, who is suspended from
England’s Euro 2012 qualifier against
Switzerland on Saturday, said: “If you
bring Xavi and Iniesta with him, yes.
But it would be difficult, almost
impossible for him to play as he does
in Spain.
“The game is more physical here,
going to the likes of Birmingham and
Stoke away is very demanding.
Cristiano Ronaldo is more suited to
the English game than Messi.
Cristiano is taller and good in the air.”
On defeat in the showpiece
Wembley final Rooney said: “It hurt. I
watched the game again because you
can always learn by watching foot-
ball. It was very disappointing but you
have to put your hands up and say
they were the better team.
“They are simply fantastic, a very
special side. That’s the level we want
to be at and we have to up our game.”
SPORT
SCHOLES
RETIRES
Tributes pour in as
United’s midfield
maestro calls it a day
after a 17-year Old
Trafford career
Football: Page 25
Investec Derby jolly
Carlton House gives
punters a scare as
colt is sent for X-rays
Racing: Page 25
▲
FOOTBALL
BY JAMES GOLDMAN
FOOTBALL ASSOCIATION chairman
David Bernstein admits his organisa-
tion’s late bid to postpone today’s Fifa
presidential election is likely to fail
but maintained a victory for Sepp
Blatter would represent an unsatisfac-
tory outcome for the sport.
Bernstein believes Fifa must also
appoint an independent body to over-
see sweeping reforms in light of the
allegations of corruption and bribery
which have been levied at some of its
most influential personnel.
“This is a matter of principle,” said
Bernstein,” whose pleas were support-
ed by the Scottish FA’s chief executive,
Stewart Regan as well as FA president
Prince William. “Myself and the FA
believe that the position in Fifa is just
not acceptable.”
In order for the FA to force a change
in the agenda of the Fifa congress,
which began in Zurich yesterday, it will
need 153 of the 205 voting national
associations to support their motion.
Bernstein is understood to have gar-
nered support from sections of
Europe and Africa, but he admits the
prospect of staging a dramatic coup is
unlikely.
“To get 150-odd votes clearly would
be extremely difficult when we start-
ing from a standing start,” he added.
“Going forward in this situation if he
does with a coronation rather than an
election I don’t think does anybody
any good – including Mr Blatter.
“This is meant to be a democratic
organisation, one’s entitled to a
Gritty Murray into last four
▲
FOOTBALL
BY FRANK DALLERES
BRITAIN’S Andy Murray joked he had
“more pills in me than Ozzy
Osbourne” after overcoming a torn
ankle tendon and fighting back from
the brink of defeat to reach the quar-
ter-finals of the French Open.
Murray (right) underlined his repu-
tation as one of the game’s grittiest
performers by battling from 5-2 down
in the final set to beat 15th seed
Viktor Troicki, who had won the first
two sets of a match that began on
Monday.
The Scot eventually wrapped up a
4-6, 4-6, 6-3, 6-2, 7-5 victory and,
because his match ran into a second
day, will be thrown straight back into
action this afternoon against
Argentinian Juan Ignacio Chela. “I
managed to come back from a situa-
CITYA.M. 1 JUNE 2011
minority view, even a singular view.
Whatever happens we are not with-
drawing from Fifa and we will and we
have to work from within the tent
with the result of what all of this is.
“Sometimes in life you have to take
a jump even if you aren’t quite sure
how solid the ground is beneath you.”
Despite taking such a brave stance,
the FA were criticised by Chuck
Blazer, who was last night attempting
to stave off attempts to sack him from
his position as Concacaf General
Secretary by its acting president Lisle
Austin.
He said: “Unfortunately with them
[the FA], everything is too little too
late. If they wanted other candidates
they should have done things before
the deadline.
“If they wanted to report malfea-
sance they shouldn’t have waited for a
Parliamentary hearing. The FA needs
to learn to be ahead of the curve and
not behind the game.”
Meanwhile, the embattled Blatter,
who is seeking a fourth consecutive
term in office, opened the congress
and admitted the world governing
body had been destabilised by allega-
tions of corruption .
“I thought that we were living in a
world of fair play, mutual respect and
discipline, and I must say this is not
the case any longer,” Blatter, 75, said. Blatter will stand
“It’s no longer the case because our unopposed in
pyramid of Fifa is suddenly unstable today’s election.
on its basis and there’s a danger. I will
speak to you later today on this dan- Picture: ACTION
ger that is lurking and tell you how IMAGES
we can fight together and work
against this threat.”
Federer sets up
Djokovic meeting
tion that on another day or as he felt his way back into
another tournament I might the match. Not until he was THIRD seed Roger Federer will face in-
not have been able to, so I was 5-2 down was he stirred into form Novak Djokovic in the last eight
proud of that,” said fourth seed a reaction, untethering his
aggressive side to win five
after the Swiss great despatched home
favourite Gale Monfils in straight sets.
Murray. “I don’t think many
people recover from a
sprained ankle and a
successive games.
“Once I went behind again, I
Federer, aiming for his second
French Open crown, won 6-4, 6-3, 7-6
tear in a tendon in two
days. I was told to stay
loosened up a little
bit, started
to set up a clash with Djokovic, the
second seed who is on a staggering
off my feet the day in
between the match-
going for
m y
43-match winning run.
World No1 Rafael Nadal faces
es. I was given shots Sweden’s Robin Soderling in their
crutches which I
didn’t use because
more
a n d
quarter-final today.
In the women’s draw, defending
I didn’t know how
to.”
g o t
through
champion Francesca Schiavone over-
came a major scare before beating
Resuming at
two sets all,
it,” he added.
“Emotionally it was
15th seed Anastasia Pavlyuchenkova.
The Italian was one set down and
Murray quick-
ly found
pretty challenging.”
Murray plays the
trailing 4-1 in the second but fought
back to win 1-6, 7-5, 7-5. The Italian
himself
behind to
unseeded Chela, against
whom he has won his last six
will play Marion Bartoli in the last four
after the Frenchwoman beat Svetlana
Serbian meetings, second today on Court Kuznetsova 7-6 (7-4), 6-4.
Troicki Suzanne Lenglen.
 CITYA.M. 1 JUNE 2011
Warner accused
of flouting his ban
SUSPENDED Fifa vice-president Jack
Warner has been reported for alleged-
ly transgressing the terms of his ban
by Concacaf general secretary Chuck
Blazer.
Warner is currently barred from
football-related activities amid a Fifa
ethics committee investigation into
allegations of bribery, but in a letter
issued yesterday encouraged members
of his Caribbean Football Union to vote
for current president Sepp Blatter in
today’s election.
Blazer, who blew the whistle on
Warner, said: “We have clear evidence
of a violation of Warner’s suspension
and we have reported that to the Fifa
secretary general Jerome Valcke.
“He has also been meeting with
Concacaf members, which is against
the rules of the suspension.”
Emirates and Visa
voice their concern
EMIRATES and Visa are the latest
heavyweight corporate sponsors to
express their dissatisfaction at the cor-
ruption scandal currently engulfing
Fifa.
Emirates, whose partnership with
Fifa started with the 2006 World Cup,
joined the likes of Coca Cola and
Adidas in condemning the accusations
of bribery which have led to the sus-
pension of Executive Committee mem-
bers Jack Warner and former
presidential candidate Mohamed bin
Hammam.
“Emirates, like all football fans
around the world, is disappointed with
the issues that are currently surround-
ing the administration of this sport,”
said a spokesperson.
Credit card giants Visa added in a
statement: “The situation is clearly not
good for the game and we ask that
Fifa take all necessary steps to resolve
the concerns that have been raised.”
Flower reveals he’s only Hamilton apologises for
seen Dernbach bowl once his Ali G impersonation
▲
CRICKET
BY JAMES GOLDMAN
ENGLAND head coach Andy Flower
insists he’s happy for Surrey pace-
man Jade Dernbach to be part of the
squad for this week’s second Test
against Sri Lanka despite hav-
ing seen him bowl just
once in the flesh.
The 25-year-old (right)
replaces the injured
James Anderson, who
was unable to bowl in
Monday’s thrilling vic-
tory over the tourists at
Cardiff, in a 12-man
squad which now con-
tains five South African-born
players.
Dernbach earned his first senior
call-up on the back of some impres-
sive displays for the England Lions
during the winter and gave Sri Lanka
a thorough workout in their tour
Chelsea favourite Hiddink
wants return to club game
▲ lems. Houllier, who only joined the club
FOOTBALL
BY FRANK DALLERES
FORMER Chelsea manager Guus
Hiddink has dropped the strongest
hint yet that he wants to return to
Stamford Bridge – whether he stays
on as Turkey coach or not.
The Dutchman, whose current role
may depend on the outcome of
Friday’s Euro 2012 qualifier against
Belgium, declared he would relish a
return to the day-to-day involvement
of club football.
However, referring to the three-
and-a-half months of 2009 in which
he managed Chelsea alongside
Russia, Hiddink suggested he would
be willing to juggle two high-profile
jobs again.
“I feel energetic, so a club role is
more preferable,” said the 65-year-old.
“And that’s what I like, working every
day. I feel I need to do more.
“I’ve trained Australia and PSV
[Eindhoven] at the same time, as well
as Russia and Chelsea, and I was very
happy. We’ll see what happens with
Turkey.”
Hiddink, who took over at
Stamford Bridge in February 2009 fol-
lowing the departure of Luiz Felipe
Scolari and led the Blues to the FA
Cup, was last night the favourite to
succeed the sacked Carlo Ancelotti.
The former Real Madrid coach,
who is still on the Chelsea payroll as
an advisor to the club’s owner Roman
Abramovich, insisted he had not yet
received a concrete offer from west
London.
“There is no official offer yet, but I
can’t guarantee anything,” he added.
“I haven’t told the [Turkish Football
Federation] chairman [Mahmut
Ozgener] what I thought yet. But he’s
an intelligent man. I am sure he fol-
lows the world media.”
Turkish media have speculated
that Hiddink could be sacked if he
fails to guide the team to next sum-
mer’s European Championship
finals. They currently lie third in
qualifying Group A, one point behind
Belgium and six adrift of runaway
leaders Germany, meaning Friday’s
match at Derby last month.
“I haven’t seen much of him to be
honest,” admitted Flower. “I’ve seen
him bowl once, at Derby against Sri
Lanka, where I think he got nine
wickets in the match and bowled
very well.
“I don’t know him well as a per-
son but he joined our squad
right at the end of the
World Cup campaign and
fitted in well.
“The coaches have been
impressed with him and
we just wanted another
option, with James
Anderson stepping out,
other than the tall bowler in
Steven Finn.”
Meanwhile, England will leapfrog
South Africa into second in the ICC
world Test rankings, potentially their
highest ever position, should they
win the final two Tests of the series at
Lord’s and the Rose Bowl.
Hiddink won the FA Cup with Chelsea in 2009
clash in Brussels could push him clos-
er to the exit.
Hiddink said his contract was for
another year and added: “I never told
anybody I was going to continue
working here. The team is focused on
me, I would affect the team negative-
ly if I answered the speculation.”
Tottenham manager Harry
Redknapp has also been linked with
the post but appears increasingly like-
ly to stay at White Hart Lane.
Chelsea defender Michael
Mancienne, who spent last season on
loan at Wolves, meanwhile, looks set
to join Hamburg after travelling to
Germany yesterday for a medical
examination ahead of a move.
▲
FORMULA ONE
BY JAMES GOLDMAN
FORMER world champion Lewis
Hamilton has apologised for his Ali G
inspired response to being repri-
manded twice by the Monaco stew-
ards during Sunday’s Grand Prix.
The McLaren driver, who finished
sixth and remains a distant second to
Sebastian Vettel in the drivers’ cham-
pionship, was penalised for tangling
with Ferrari’s Felipe Massa before
being handed a 20-second penalty for
a skirmish with Pastor Maldonado.
Asked why he thought the stewards
had taken a dim view of his antics,
Hamilton responded: “Maybe it’s
because I’m black. That’s what Ali G
says.”
Later, however, the 26-year-old,
mindful that his remark may have
caused offence wrote on Twitter: “Hey
guys, I wanted to apologise for my
performance and my comments. I
Pictures: ACTION IMAGES
Hammers set to
appoint Allardyce
WEST HAM are expected to bring
their search for a new manager to a
close this week, with former
Blackburn boss Sam Allardyce
favourite to land the role. Allardyce,
who also had spells at Bolton and
Newcastle, is being tipped to sign a
two-year contract at Upton Park. His
first task will be to lead the recently
relegated side back into the top flight.
McLaren driver Hamilton Picture: PA
never meant to offend anyone.”
Immediately after the race,
Hamilton said: “Massa held me up in
qualifying, I got the penalty. He
turned in to me [during the race], I
got the penalty. These drivers are
ridiculous. It’s stupid.”
But Hamilton added on Twitter:
“To Massa and Maldonado, with the
greatest respect I apologise if I offend-
ed you. Both of you are fantastic driv-
ers who I regard highly.”
Sport 27
SPORT | IN BRIEF
Houllier tipped to leave Villa
FOOTBALL: Aston Villa manager Gerard
Houllier’s short tenure looks likely to be
ended this week due to concerns over
his health. The Frenchman, 63, missed
the last month of the season after being
admitted to hospital with heart prob-
in September, has since undergone fur-
ther tests to determine whether he is fit
to return. His No2 Gary McAllister
insisted two weeks ago that the former
Liverpool boss would definitely be in
charge next season. However, Fulham’s
Mark Hughes, ex-England coach Steve
McClaren and Everton’s David Moyes
have been linked with replacing Houllier.
Modric hints at Tottenham exit
FOOTBALL: Tottenham midfielder Luka
Modric has hinted the club’s failure to
qualify for the Champions League could
prompt him to leave. Modric, who is
thought to be a target for Manchester
United, said: “I’m happy at White Hart
Lane, but when you experience playing
in [the] Champions League, you want to
keep playing in this tournament.”
Contador free to defend Tour
CYCLING: Tour de France winner
Alberto Contador is free to defend his
title next month after his doping hearing
at the Court of Arbitration for Sport
was postponed until August. The
Spaniard, who faces losing his title and a
two-year ban if found guilty, tested posi-
tive for clenbuterol during last year’s
Tour. Spanish cycling chiefs cleared the
28-year-old in February but the Cas
agreed to re-examine the case after an
appeal from world governing body the
UCI and the World Anti-Doping Agency.
Results
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email sport@cityam.com
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