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FTSE 100 5,164.65 +37.08 DOW 11,231.78 -25.77 NASDAQ 2,441.51 -18.57 /$ 1.54 -0.01 / 1.17 +0.01 /$ 1.32 -0.01
Army on
standby
for strike
THE Army has been put on standby to
run Britains borders amid fears
Wednesdays mass strike over pensions
will paralyse public services.
Up to 18,000 immigration officials
will join the industrial action, which
is set to close up to two-thirds of
schools, trigger chaos at ports and air-
ports and disrupt services ranging
from refuse to tax collection.
The coalition has told soldiers and
civil servants they may have to help
out after airports operator BAA
warned of 12-hour delays for passen-
gers at Heathrow and the need to
keep people held on planes.
Yesterday tensions increased as a
Treasury source dismissed as bogus
a claim by Brendan Barber, the TUC
general secretary, that Ministers had
misrepresented the income due to
public sector workers in retirement.
Two million people are expected to
join the walkout over cost-cutting
measures that compel them to pay
more for their pensions and to retire
later. Talks, which began a year ago,
have been stalled since 2 November.
Francis Maude, the Cabinet Office
Minister, called the strike stupid and
wrong and George Osborne, the
Chancellor, said that the reforms
were a good deal that were fair to
public sector workers and taxpayers.
Richard Simcox from the PCSU,
told City A.M.: Our members... dont
want their pay frozen, jobs cut and
pensions raised to pay off a deficit
they didnt cause.
BY PETER EDWARDS
POLITICS

Chancellor George Osborne will take on 20bn in bank debt risk Picture: REUTERS
THE GOVERNMENT will guarantee
20bn of UK bank debt over the next
two years, chancellor George Osborne
revealed yesterday, in a desperate bid
to unfreeze credit markets.
The Treasurys credit easing pro-
gramme will see the government
underwrite chunks of lenders debt to
bring their borrowing costs down, in
return for which they will cut the cost
of their loans to small businesses by up
to one per cent.
Osborne said the aim is to use the
fact that the government can borrow
money very cheaply to help small busi-
ness to borrow money more cheaply.
It is not yet clear how much more
small businesses will opt to borrow at
the lower cost or how much banks
cost of credit will be brought down.
The scheme marks a temporary
reversal in the attempt to end the
implicit state guarantee for banks, see-
ing governemnt directly underwrite
their debt. But the treasury has prom-
ised to audit it so that the drop in the
price of risk is passed on to small busi-
nesses and does not benefit banks.
The firepower for the plan will come
from cancelling 40bns worth of guar-
antees to the Bank of Englands asset
purchase scheme (APS).
The APS will still be underwritten to
the tune of 10bn but the treasury will
deploy 20bn of guarantees on credit
OSBORNE UNVEILS
20BN LOAN PLAN
BY JULIET SAMUEL
POLITICS

www.cityam.com FREE
CYBER
MONDAY
WHY TODAYS THE
BIG DAY FOR
E-TAILING P25 & 33
FOOTBALL STUNNED BY
DEATH OF WALES BOSS
GARY SPEED 1969-2011 P38 & 39
BUSINESS WITH PERSONALITY
easing and keep another 20bn on
standby to boost it to 40bn if needed.
Alongside the details of the scheme,
City A.M. understands that Osborne
will also announce a new tax raid on
hundreds of banks in his autumn
statement tomorrow.
He will unveil the second hike to the
UKs 0.075 per cent bank balance sheet
levy within a year of its introduction.
The hike is due to banks shrinking
their wholesale funding base so much
that Osborne is no longer on course to
get the 2.5bn in revenues he had bud-
geted for.
In effect, it means that banks that
have cut their loan book the most by
selling off assets Lloyds and RBS
will shoulder less of the burden.
Other banks, including HSBC and
Standard Chartered, will take on pro-
portionately more of the burden
despite some of them having less risky
funding structures.
However, those worst hit will be
banks more reliant on wholesale fund-
ing, such as the UK businesses of many
American investment banks.
Among the other growth measures
expected are:
Talks between the Treasury and pen-
sion funds to get them to invest in
infrastructure. The National
Association of Pension Funds told City
A.M. it envisages investing 15-20bn.
Scrapping auto-enrolment in pen-
sions for small firms with under 50
staff, although this could be delayed.
Scrapping a planned 3p rise in fuel
duty and limiting rail fares rises.
Reducing carbon tax costs for firms.
ALLISTER HEATH: P4, MORE: P6-8, P28.
Certified Distribution
03/10/11 till 30/10/11 is 100,123
Issue 1,520 Monday 28 November 2011
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News
4 CITYA.M. 28 NOVEMBER 2011
PLEA TO BRUSSELS OVER AUDIT
SHAKE-UP
The heads of several midsized audit
networks have issued a last-ditch
appeal to the European Commssion
not to dilute sweeping proposals
aimed at reducing the dominance of
the four biggest accountants and
improving audit quality. In a joint
interview with the Financial Times,
the chief executives called on Michel
Barnier, EU internal market commis-
sioner to hold his nerve as he finalises
his recommendations for reforming
the sector, which are expected next
week.
HEDGE FUND CHIEF BACKS
TRANSACTION TAX PLAN
The founder of one of Londons
biggest hedge funds has given quali-
fied support for a European tax on
financial transactions, breaking
ranks with many of his peers fiercely
opposed to such a measure. David
Harding, the chief executive of the
$26bn Winton Capital, said he did
not object to moves by European
Union politicians to levy the tax
dubbed by UK chancellor George
Osborne a bullet aimed at the heart
of London earlier this month.
BNP EYES SALE OF $700M PRIVATE
EQUITY PORTFOLIO
BNP Paribas is weighing a sale of a
more than $700m private equity port-
folio, underlining how banks are
looking to dispose of such assets to
shrink their balance sheets and bol-
ster their capital base.
GULF CARRIERS GROWING PAINS
START TO TELL AT EMIRATES
Etihad and Qatar Airways, the fastest-
growing Gulf airlines, are scouting
for deals as they strive to match the
scale of Emirates Airline, their larger
rival. Etihad is looking to buy stakes
in European and Asian airlines. Qatar
is also interested in airline stakes.
NHS IS WASTING MILLIONS ON
VACCINES
The NHS is being overcharged by
100m a year for vaccines to immu-
nise British children against diseases
such as measles and tuberculosis,
according to the worlds largest man-
ufacturer of vaccines. Cyrus
Poonawalla, whose company Serum
Institute of India produces half the
worlds vaccines by volume, said that
British taxpayers were suffering
because of excessive profits earned by
big Western drugs companies.
CITY MUST WAIT FOR SKYSCRAPERS
TO REVIVE MORIBUND DEMAND FOR
OFFICES
The aftermath of Lehman Brothers
collapse and falling business confi-
dence mean that new office space in
the Square Mile has hit a record low,
And, according to a survey by Drivers
Jonas Deloitte.
FAREPAK FEES REACH 8.2M
Five years after Farepak went bust,
ruining Christmas for nearly 120,000
savers, the fees dealing with the
administration have overtaken any
amount customers can hope to
receive. The great majority of cus-
tomers are still waiting to receive
some of their money back, which is
expected to total 5.53m. However,
this is dwarfed by 8.2m earned by
lawyers, administrators, insurers and
media relation executives during both
the administration and liquidation of
the company.
M&S GIVES CASHMERE GOATS A
BREAK BY RECYCLING WORN-OUT
SWEATERS
Marks & Spencer is working on a wool-
ly idea to recycle precious cashmere
from worn-out jumpers. It has created
500 coats made almost entirely from
wool recycled from damaged items.
OLYMPUS LEADERS URGED TO QUIT
BOARD
Olympus Corps top executives
should resign their board seats but
retain their management posts for
the time being to keep the company
stable, said a former Olympus direc-
tor who is leading a push to reform
the Japanese camera and medical-
equipment maker. The concerns were
expressed by Koji Miyata, a former
senior executive and director who
retired from Olympus in 2006.
CATERPILLAR STIRS STATES
ASPIRATIONS
Forget Kindle Fires and iPads. One of
the holiday gifts most coveted by
local officials across the US this year
is a new Caterpillar construction-
equipment factory, likely to be pre-
sented to a North American
community in late December. The
factory would bring 1,000 jobs.
WHAT THE OTHER PAPERS SAY THIS MORNING
Chancellors plans are a mixed bag
THIS weeks Autumn statement by the
chancellor will be like the proverbial
curates egg: good in parts, bad in oth-
ers, and as a result not entirely
digestible. While bits of George
Osbornes plans rightly focus on liber-
ating companies and individuals, oth-
ers involve creating special schemes,
funds and interventions, many of
them gimmicks, and seek to turn the
government into a semi-bank guaran-
teeing mortgages and lending to small
firms. In the wake of the sub-prime cri-
sis, such corporatist schemes fail the
smell test. Taxpayers should not be
asked to guarantee risky lending that a
newly becalmed private sector refuses
to countenance. It is crazy that parts of
the government (the regulators) are
telling banks to cut risky lending and
hold far more capital against small
business lending than they previously
had to, while another part of the gov-
ernment (the Treasury) is complaining
when they do so and will use taxpay-
ers money to try and dilute the impact
of the regulations. Joined-up govern-
ment, RIP.
Some of the repeated shifts to the
goal-posts are reminiscent of what
used to happen when Gordon Brown
was in charge. Take Osbornes plan to
hike the special tax rate on banks to
ensure it still raises the 2.5bn
planned: this is the third time the tax
rate has been hiked in a year. When it
comes to overall tax rates and levels of
public spending and borrowing, as
well as to his meddling tendencies,
George Osborne is failing to differenti-
ate himself sufficiently from his
Labour predecessors.
Its far from all bad, however.
Motorists will thank the chancellor for
deferring Januarys 3p fuel duty rise,
while there will be some, albeit minor,
good news for energy intensive firms.
Osborne should be commended for
the governments decision to exempt
firms with under 50 staff from the
Nest pension auto-enrolment scheme
(though he should have postponed it
for everybody). Chris Graylings bid to
reduce health and safety red tape is
equally welcome, assuming that it is
more than mere rhetoric or trivial (as
ever, I will believe it when I see it). The
same is true of the reforms to employ-
ment law launched by Vince Cable
though, once again, change is taking a
long time and various measures have
been reannounced several times
already, which is worrying.
Osbornes bid to tap the private sec-
tor to invest and finance infrastructure
projects is great, though it depends on
how exactly it is executed. It is vital to
avoid another private finance initia-
tive-style fiasco, where taxpayers were
taken for a ride and the main aim of
the project was to keep liabilities off
the governments balance sheet. The
real problem are planning restrictions;
it is these, rather than demand, that
are stopping investment. Plenty of
companies would love to build a new
airport but they are not allowed to do
so. It would be silly to invent a new
layer of bureaucracy and government
guarantees to encourage global funds
to do what they would have done any-
way under much more basic reforms.
Parts of the infrastructure plan that
Osborne will announce tomorrow will
come from extra public spending. This
will rightly mainly be paid for by sav-
ings elsewhere, but two questions
remain: will Osborne scrap what is left
of pension tax relief for higher rate tax-
payers? And what will happen to all of
these plans if, as the Treasury increas-
ingly fears, the Eurozone is about to
face a truly devastating crisis? Let us
hope Osborne has the answers.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
US Black Friday sales up 6.6pc
US Black Friday sales were 6.6 per cent
up on a year ago, according to retail data
and consulting firm ShopperTrak. The
gains were the strongest since 2007 and
topped last years weak 0.3 per cent rise.
The firm, which instals monitoring devices
in stores to gauge foot traffic, said many
retailers extended trading hours by open-
ing on the night of Thanksgiving rather
than very early on Friday. There was an
even bigger increase in internet sales,
according to research firm comScore,
which said e-commerce was up 26 per
cent from $648m last year to $816m on
Friday.
City expects lower bonuses
City workers expect their bonus to be
equal to about a quarter of their salary
this year, down from 35 per cent last year,
according to a survey by recruitment firm
Astbury Marsden. That translates to an
average bonus of some 20,000 (assum-
ing average pay of 83,000). However,
managing directors think they will get
bonuses equal to 70 per cent of their
salary, or an average of 166,000. Fixed
income investment bankers expect a
bonus of only 13 per cent, however.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Commission. The PCC takes complaints about the
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Editor Allister Heath
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News Editor David Crow
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Commercial Director Harry Owen
Head of Distribution Nick Owen
CUTS in corporation and
income taxes would benefit the
City, but expectations are low
for George Osborne to offer any
in tomorrows Autumn
Statement, according to the
Voice of the City survey pub-
lished today.
More than two-thirds (69 per
cent) said they would be very
favourable or somewhat
favourable towards a proposal
to cut corporation tax more
quickly. A similar pro-
portion (68 per cent)
said the same of
scrapping the 50p
tax rate for high
earners.
Yet just 28
per cent
think it very
likely or
somewhat like-
ly that the
Chancellor will cut corporation
tax more quickly, and a mere
13 per cent think he might
abolish the top income tax rate.
Meanwhile 57 per cent
expect him to cut employers
national insurance (NI) con-
tributions to encourage
firms to take on young
workers a plan not
dissimilar to the
NI holiday pro-
posed by Labours
Ed Balls (pictured left).
PoliticsHome.com PoliticsHome.com
How favourable would you be towards the Chancellor
cutting corporation tax faster?
How favourable would you be towards the Chancellor
cutting the 50p tax rate for high earners?
Very favourable
Somewhat favourable
Somewhat unfavourable
Very unfavourable
Dont know Neither favourable nor unfavourable
%
27
14
9
7
42
%
18
12
6
13
50
Very favourable Somewhat unfavourable
Neither favourable nor unfavourable
Somewhat favourable Very unfavourable
Dont know
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
BY TIM WALLACE
UK ECONOMY

In partnership
with
The City wants tax cuts but does
not think Osborne shares its hope
CHINA is keen to invest in the ail-
ing infrastructure of Western coun-
tries, especially Britain, the
chairman and chief executive of
the Asian countrys sovereign
wealth fund wrote in the Financial
Times.
Now, infrastructure in Europe
and the US badly needs more
investment, China Investment
Corporations (CIC) Lou Jiwei wrote.
He said while China had tradition-
ally confined itself to the role of con-
tractor in overseas infrastructure
projects, the countrys investors now
saw a need to invest in, develop and
operate such projects.
In a sign of this determination,
the China Investment
Corporation... is now keen to team
up with fund managers or partici-
pate in public-private-partnerships
(PPP) in the UK infrastructure sec-
tor as an equity investor, Lou
wrote.
CIC believes that such an invest-
ment, guided by commercial princi-
ples, offers the chance of a
win-win solution for all.
Local co-investors need to provide
knowledge for infrastructure proj-
ects while the government must
encourage domestic players to head
them, Lou wrote.
EUROZONE leaders are hoping to
stimulate demand for the debt of
their bailout fund by rushing out
newly drawn-up plans for how it will
work.
The European Financial Stability
Facility (EFSF) was forced to cancel an
auction of its debt recently due to lit-
tle interest from investors, with
details scarce on how its capital will
be deployed.
However, Eurozone officials have
now made some progress in working
out how the funds 250bn available
cash will be leveraged.
The fund will guarantee losses
equal to 20-30 per cent of a Eurozone
government bonds value by issuing
a certificate to buyers of the debt,
according to Reuters.
The certificate could then be
bought and sold separately. It would
pay out, either in cash or EFSF debt, if
the International Swaps and
Derivatives Association determined
that a credit event had taken place
or if Eurozone ministers agreed that
a significant voluntary restructuring
of debt had occurred.
However, the EFSF will also keep
around 10bn in un-leveraged capital
on standby for unforeseen events.
There were also reports yesterday
that the IMF is putting together a
600bn rescue for Italy with the aim
of seeing it through the next year so
that new Prime Minister Mario Monti
has some breathing space in which
to bring down the countrys huge
debt pile.
The loan would be put together by
the IMF and European Central Bank
(ECB) and would charge a 4-5 per cent
interest rate, according to an Italian
newspaper.
A 1.4 per cent rally in the Nikkei
225 as of midnight last night was put
down to reports of the IMF rescue
and EFSF progress.
However, the IMF would need sig-
nificantly increased resources at its
disposal in order to make such a
loan. It is not clear where the funds
would come from, with its biggest
backer, the US, battling its own debt
crisis.
The IMF is currently reviewing
Italys finances with its new govern-
ment hoping its verdict will boost
market confidence in its debt reduc-
tion plan.
Eurozone in
rush to draw
up fund rules
LLOYDS has put a maximum 6m pay
package on the table for George
Culmer, its incoming chief financial
officer, and is negotiating with his cur-
rent employer, RSA Group, to enable
him to join before his 12-month notice
period ends.
It is understood that the pay will be
made up of a base salary of around
600,000, with the rest in shares. It
includes converting Culmers unvest-
ed reward of RSA Group shares into
Lloyds shares, worth several hundred
thousand.
Despite being offered a 6m pack-
age, Culmer is not likely to receive the
full amount. It is unusual for Lloyds
executives to receive the maximum in
pay-outs because much of it is depend-
ent on meeting a series of perform-
ance targets.
The sharper the tools
the more condent you can be
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The value of investments can go down as well as up. You may not get back all the funds
you invest.
Lloyds hire in line
for 6m package
CIC: China ready to invest in
ageing Western infrastructure
BY JULIET SAMUEL
EUROZONE

POLITICS

Klaus Regling,
head of the
Eurozone bailout
fund, needs to
drum up demand
for its debt.
Picture: REUTERS
BY JULIET SAMUEL
BANKING

News
5 CITYA.M. 28 NOVEMBER 2011
GEORGE Osborne announced 20bn
of guarantees to banks in an effort to
cut borrowing costs for small and
medium-sized enterprises yesterday.
He announced the credit easing
idea in Septembers conference
speech, and has now made clear he
hopes to cut SME interest rates by
around one percentage point.
We are making available 20bn for
the national loan guarantee scheme,
which sits within an envelope that
could be as large as 40bn, he told the
BBCs Andrew Marr.
A range of banks will participate
over the next two years, boosting mar-
ket confidence in them and so cutting
the rate at which they can borrow.
Once the banks obtain funds at
lower rates, they will be expected to
pass the saving on to companies with a
turnover of less than 50m.
City A.M. understands the Treasury
does not want to guarantee SMEs
directly, which would put taxpayers
money on the line in if they go bust.
Under the proposals the Treasury
will only pay out if a bank fails, which
Osborne sees as highly unlikely.
It could be a good short-term meas-
ure, provided the lower funding costs
are actually passed on , Federation of
Small Businesses Andrew Cave told
City A.M. But in the long-term, we
need more funding sources and more
competition among banks.
UK will guarantee banks
debt to boost SME loans
BY TIM WALLACE
UK ECONOMY

News
6 CITYA.M. 28 NOVEMBER 2011
MORE NEWS
ONLINE
@
www.cityam.com
Rail fare rises cut to 6pc
COMMUTERS will gain slight relief in
George Osbornes Autumn Statement
as he is expected to announce peak
and season ticket price rises will be
capped at a lower level.
Rises will be kept below six per cent,
it is thought, rather than the eight per
cent previously anticipated.
This will cost the Treasury 300m,
but a department source told City A.M.
that the overall package announced
tomorrow will not add to the deficit.
UK ECONOMY

Small firms to be exempt

from staff enrolment rule
SMALL companies are to be exempted
from the governments automatic pen-
sion enrolment scheme, the chancel-
lor is expected to announce tomorrow.
The scheme will be rolled out from
2012, but allowing small firms to delay
the changes should help them
through the economic downturn
without the additional burden of pay-
ing for more pensions.
Ministers had previously defended
the plans as crucial to helping workers
save for retirement, as the scheme
gives an opt-out not an opt-in.
The rule would mean five to eight
million workers saving for a pension
for the first time though now the
numbers will be millions lower.
There was always the risk that the
Government would lack the courage
of its convictions and back away when
push came to shove, said actuary
Barnett Waddinghams Malcolm
McLean. The extra costs could per-
haps have been partly offset by greater
fiscal help to SMEs via the tax system.
UK ECONOMY

News
7 CITYA.M. 28 NOVEMBER 2011
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TALKS are beginning to work out how
the government can harness tens of bil-
lions of pounds in pensions funds cash
to boost infrastructure spending, the
Treasury and pensions industry
announced yesterday.
A memorandum of understand-
ing was signed by the Treasury, the
National Association of Pension
Funds (NAPF) and the Pension
Protection Fund (PPF) signalling
that they will co-operate to devel-
op a new investment platform.
The government wants to see
200bn in new infrastructure
investment over the next five
years, and wants 15 to 20bn
to come from pension funds.
As the funds look to provide
long-term returns for savers, they hope
infrastructure projects, like toll roads
and energy generation, will match their
risk and return profiles.
Working together on a new invest-
ment platform will help our industry
match the level of investment seen in
other countries by pooling
resources and expertise, said
NAPF chief executive Joanne
Segars (pictured).
The level of investment will
depend on the yields investors
can expect.
PPF chief executive Alan
Rubenstein believes all par-
ticipants are keen to make
quick progress.
I would be very surprised
if nothing new was
announced before the next
budget, he told City A.M.
Pension funds
look to invest
BY TIM WALLACE
UK ECONOMY

The Treasurys review of inde-

pendent forecasts shows an aver-
age forecast of just 1.0 per cent
both this year and next meaning
less cash for Osborne to spend.
The OBR forecast in March put
borrowing at 121.8bn this year
and 101bn next year. But inde-
pendent economists believe it will
be closer to 129.1bn and 117bn.
Back in March, the Office for
Budget Responsibility (OBR) fore-
cast GDP growth of 1.7 per cent in
2011 and 2.7 per cent in 2012. But
that will be cut back on Tuesday.
Osborne is ahead of his deficit-
cutting plan, but not by much.
Falling GDP growth means he will
only eliminate the deficit in 2017,
not 2015, according to Barclays.
ANALYSIS l Growth down, deficit up
1%
Growth
Expected
2012 revision
117bn
Deficit
Expected
2012 revision
EMPLOYMENT minister Chris
Grayling has revealed plans to dump
dozens of health and safety rules,
telling the Sunday Times: Health
and safety legislation should be all
about saving lives and preventing
people from serious injury, but we
have a bad record on unnecessary red
tape.
Regulations expected to be cut
include strict liability rules, under
which employers can be sued even for
accidents that were not their fault.
The red tape challenge was
launched in April, providing a website
through which members of the public
can detail their experiences of regula-
tion and suggest improvements.
Graylings declaration came as busi-
ness groups called for further action
on red tape among fears that the
much-vaunted red tape challenge
has lost its momentum. The British
Retail Consortium (BRC) called on
George Osborne to slash regulations
hitting retailers, whilst a PwC study
shows the challenge red tape presents
businesses, and Grayling (pictured
right) yesterday announced plans to
scrap the most damaging health and
safety rules. Eighteen months in,
with the economy stalling, the need
for the Government to deliver real
growth not just more promises is
all the more urgent, said the BRCs
director general Stephen Robertson.
The government has so far failed to
deliver any significant de-regulation.
Professional services firm PwC also
published a new survey today showing
a quarter of large firms see regulations
as a key challenge.
Red tape is undoubtedly a major
issue for British business, and is partic-
ularly acute for smaller and mid-sized
firms, where it can mean the differ-
ence between success and failure
said tax partner Alex Henderson.
While global economic difficulties
are largely beyond the Chancellors
control, they make it more important
than ever that the UK stands out inter-
nationally as a place for business.
Ill streamline
safety rules,
says Grayling
THE NEXT five years will see far more
public sector job cuts than the Office
for Budget Responsibility (OBR) cur-
rently expects, according to a new
report from the Ernst and Young
Item Club, out yesterday.
GDP growth will grind to a halt,
the respected economists believe,
but one factor keeping the govern-
ment relatively close to its borrow-
ing targets will be soaring public
sector unemployment.
The OBR has been far too conser-
vative in estimating losses of 20,000
general government jobs in
2011/12 the Club believes.
Just one quarter into the finan-
cial year, the number of job losses
already stands at 147,000 the report
said.
We would expect to see the OBR
increase its estimates of general gov-
ernment job losses between 2012/11
and 2015/16 from around 400,000 to
closer to 500,000.
Meanwhile George Osborne is
expected to announce years of pain,
with spending cuts into 2017 in his
Autumn Statement tomorrow.
The speech is expected to under-
line the long-term nature of the
deficit reduction programme, which
has become more difficult thanks to
the economic downturn.
Item Club says
100,000 more
jobs will be lost
Chris Grayling attacked the damaging consequences of over-regulation Picture: REUTERS
BY TIM WALLACE & THOMAS MCMAHON
REGULATION

UK ECONOMY

News
8 CITYA.M. 28 NOVEMBER 2011
A MONGOLIAN coal miner is consid-
ering a multi-billion flotation in
London in a deal that will please
investment bankers who have been
largely starved of new issues in
Londons faltering IPO market.
According to banking sources,
Goldman Sachs and Deutsche Bank,
are working on the potential listing
of the state-owned Tavan Tolgol, with
hopes that the group could list with a
valuation of in excess of 10bn some-
time in the New Year.
There are reports that the group
might list as little as 15 per cent of its
shares in the so-called free float,
although yesterday sources suggested
that this figure was a long way from
being decided. London listing rules
normally require a 25 per cent free
float, although sometimes this
requirement is waived by the llsting
authorities if they decide the issue is
large enough to ensure a liquid mar-
ket in the shares.
Yesterday sources close to the deal
said the company would demonstrate
that all the corporate governance
requirements were in place before it
came to market, with some UK invest-
ment institutions complaining that
the listing procedures have become
too lax. Theres a lot up in the air at
the moments and a lot to do, said
one person close to the deal.
Mongolias prime minister
Sukhbaatar Batbold wants to com-
plete the flotation, which will involve
a listing in Hong Kong and Mongolia
as well, by March, although some
think this might be too optimistic.
If Tavan Tolgol does make it to mar-
ket, it will follow a host of other for-
eign-owned resources groups listing
in London such as Evraz and
Polymetal in a phenomenon which
has concerned some investors who
feel the FTSE indices are becoming
too dominated by such groups.
However, without such new market
entrants, the new issues markets
would be even more dormant than
they already are.
Miner plans
London listing
in New Year
CLIENTS of the British arm of col-
lapsed US broker MF Global today
move one step closer to getting back
some of their money as the adminis-
trator publishes a timetable for deal-
ing with claims.
KPMG, the special administrator,
said clients could submit claims from
8 December until 30 March next year.
Joint administrator Richard Heis
said: The proportion of the client
money pool to be distributed initially
is dependent upon the return of suffi-
cient funds from third party institu-
tions and the ability of the Joint
Special Administrators to make ade-
quate provision for all possible claims
in respect of client money.
Several clients of MF Global, which
collapsed on October 31 after a $6.3bn
(4.08bn) bet on the Eurozone trig-
gered a massive loss of confidence,
have complained about the time taken
to return cash held in segregated
accounts. KPMG said an interim dis-
tribution will be made within 14 days
of the claim being agreed.
On Friday US broker INTL FCSTone
agreed to buy the British metals unit
of MF Global Holdings, including its
London Metal Exchange ring-dealing
seat, securing a significant role in met-
als with a single deal.
Cash hope for
British clients
of MF Global
Mongolia prime minister Skhbaataryn Batbold Picture: REUTERS
BY DAVID HELLIER
CAPITAL MARKETS

News
11 CITYA.M. 28 NOVEMBER 2011
LONDONS CALLING
WHOS WHO AND WHATS HAPPENED SO FAR
Evraz The steelmaker is part-owned by Chelsea owner
Roman Abramovich and launched with a free
float of 23.4 per cent. Its current market capi-
talisation is 5.369bn.
Polymetal Launched with a free float of 50.7 per cent, 45
per cent of the gold and silver mining company
is shared by three billionaires. Its market capi-
talisation is 4.15bn.
Polyus Gold Russias largest gold producer with major inter-
ests in Kazakhstan, the company intends to
launch with a free float of just 13 per cent. Its
market capitalisation is 2.491bn.
Tavan Tolgoi Mongolian miner is discussing a high-profile
float in London sometime next year.
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JAMES Murdoch will be comfortably
re-elected as a director of BSkyB at
tomorrows annual general meeting,
says one of the broadcasters biggest
investors, despite shareholder calls
for him to resign in the wake of the
phone hacking scandal.
Hedge fund boss Crispin Odey, who
holds a 2.7 per cent stake in the satel-
lite business, says Murdoch looks
secure in the position. He will feel
the influence [of the controversy]
Odey told City A.M. But I expect him
to remain on the board.
The critical vote at tomorrows
annual general meeting of BSkyB fol-
lows Murdochs resignation from the
boards of News Group Newspapers
and Times Newspapers.
A number of shareholders, includ-
ing Kames Capital, Legal & General
and Franklin Templeton, are reported-
ly preparing to vote against Murdoch
after the claims of phone hacking at
the News of the World emerged,
which led to the papers closure.
But investors Odey, Capital
Research Global Investors and
Taube Hodson Stonex, which
between them own 9.4 per cent of
BSkyB, are understood to be plan-
ning to vote in favour of Murdoch.
I am voting for James as a thank
you for taking the company where it
is, Odey told City A.M. He has done
a good job so far and he tells me he
is very committed to being chair-
man and to continuing to help out.
News Corp, which owns 39 per
cent of BSkyB but has 37 per cent of
the votes, has also stated it will back
Murdoch to remain as chairman, a
role that is contingent upon
Murdoch being re-elected as a direc-
tor. The remaining shareholders
votes are weighted proportionately to
their stake in the company.
Twelve of the 14 BSkyB directors
are standing for re-election at the
11am meeting at the Queen
Elizabeth II Conference Centre in
Westminster tomorrow. It has
already been announced that Allan
Leighton and David Evans will step
down as directors immediately after
the AGM, to be replaced by Martin
Gilbert and Matthieu Pigasse.
Earlier this month, BSkyB deputy
chairman Nick Ferguson wrote to
shareholders to reason why James
Murdoch should stay as chairman.
Murdoch set
to survive at
Skysays Odey
BY HARRIET DENNYS
MEDIA

James Murdoch getting a grilling from MPs Picture: REUTERS

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News
13 CITYA.M. 28 NOVEMBER 2011
NEWS | IN BRIEF
Bluefin Advisory may be sold
Axa UK has hired advisors to decide
whether to sell its Bluefin Advisory
Services. Following reports of a possible
sale, the company said it had appointed
Fenchurch Advisory Partners to consult
on the firms strategic options.
Working closely with the senior man-
agement team in BAS, Fenchurch will
consider both the prospects for the con-
tinued growth of the business under its
existing ownership structure as well as
assessing and testing whether Bluefin
Advisory Services, its clients and staff
would be better positioned under new
ownership. it stated. It stressed that
Bluefin Insurance Group, the general
insurance broking business, is a com-
pletely separate business, so would not
be part of the review.
BSkyB investors have reasons to
stick with their under-fire chairman
S
o should James Murdoch remain as a direc-
tor of BSkyB or should he go?
On one level, it is an easy story for
shareholders: the dividend of 353m
plus the share buyback of 750m adds up to a
nine per cent payout to investors of the compa-
nys market cap of 12bn. Murdoch also has a
good relationship with BSkyBs chief executive
Jeremy Darroch and has worked with the inde-
pendent directors for eight years.
In addition, Murdoch has assured the board
that he can devote sufficient time to the role,
given his executive role at News Corp, and
Darroch has confirmed that Murdoch has been
fully available, as required, since the end of News
Corps bid process this summer for the 61 per
cent of BSkyB it doesnt already own.
However, in the event News Corp eventually
comes back with a second bid to own BSkyB out-
right, some shareholders would feel more comfort-
able with an independent chairman at the helm.
And, of course, the question-mark over
Murdochs integrity following the hacking scandal
could affect BSkyBs reputation and more
importantly sales. The share price has so far
been stable since the scandal broke in July, and
deputy chairman Nick Ferguson claims he has
seen no negative effect internally. Whether this
will remain the case as the Leveson inquiry
unfolds, however, is far from guaranteed.
BOTTOMLINE
Analysis by Harriet Dennys
by the charity event with Leukaemia
& Lymphoma Research.
BREAKING THE ICE
HOW TO make friends and influence
people: conduct a naked phone chat
with Five Live at the Labour Party
Conference and then dine out on the
story for the next few months.
Well, it seems to be working for
John Longworth, the new director
general of the British Chambers of
Commerce, who was called for his live
interview just as he emerged from
taking a shower in his Liverpool hotel
bedroom. Apparently, the tale has
proved something of an icebreaker as
Longworth settles into the role.
LLOYDS RESHUFFLE
WANTED: a media relations manager,
a senior media relations manager and
a media relations officer. Anyone
would think there was some sort of
communications crisis at the recruit-
ing bank in question.
But no, says Matt Young, group cor-
porate affairs director at Lloyds
Banking Group, the PR hiring spree is
simply about reorganising what we
had before as part of an internal
comms restructure dating back to
Lloyds strategic review in June.
It is certainly not related to any-
thing that has happened in the last
three weeks, said Young firmly, fol-
lowing Lloyds crisis manoeuvres after
stressed-out chief executive Antonio
Horta-Osorio decided to take an
extended break. Just so thats clear.
DIAMOND AUCTION
IF ITS good enough to appear in the
December issue of Vogue, its good
enough for the readers of City A.M.,
says Laura Young, who brings you this
Peter Lindbergh portrait of model
Stella Tennant wearing an 18-carat
yellow and white gold diamond neck-
lace (pictured above).
The pendant is being auctioned off
on Wednesday by Edinburgh auction-
eers Lyon & Turnbull to raise funds
for the Teapot Trust, a charity that
provides art therapy for children with
life-limiting diseases in Edinburgh
and Glasgow. For details on how to
bid, email laura@johnctaylor.com
STRICTLY BALLROOM AS HOGAN
LOVELLS TAKES TO THE DANCEFLOOR
PALE winter skin was smothered in
fake tan and suits were replaced by
sequins. Think The Only Way is
Essex meets Strictly Come Dancing
and youre halfway to picturing the
spectacle that was Hogan Lovells
ballroom dancing contest.
There is no record of what the
law firms clients made of it all, but
the Legally Ballroom event was
such good fun that co-ordinator
Richard Tyler the energy partner
with two left feet found he had
important business in Ankara to
attend to on the night in question.
But fortunately there were
enough people happy and keen to
take part, Tyler told The Capitalist on
his return from northern Turkey.
Fifteen couples from the firms
London office, in fact, who had given
up their Wednesday evenings for ten
weeks in the run-up to learning the
mambo, paso doble, jive and waltz
from professional dancers.
Laurence Dace and Corinne
McPartland were judged the winning
Hogan Lovells pair by former England
footballer Geoff Thomas, Hogan
Lovells business development manag-
er Errol Donald and Clara Evans from
Caterham Dance School. Action
Against Hunger split the 9,000 raised
Partner John Young and Action Against Hungers Claire Pryce perform an exhibition dance
The Capitalist
14 CITYA.M. 28 NOVEMBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
TWO things are in plentiful supply at the
1980s-themed club Maggies in West
London: bad taste and Russian Standard
vodka. Combine the two, as one City boy
did when he turned up to start Christmas
early with seven friends, and you find
yourself wearing the Miners Cap a hat
adorned with the Iron Ladys face that
dripfeeds cocktails as you dance.
Elsewhere on the Thatcher-era drinks
order were the Maggies Fishbowl
vodka, Malibu, Midori and champagne
and the larger sharkbowl version called
Brewsters Millions, pina coladas, Grey
Goose vodka and Rubiks Cube shooters.
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Italys soccer players have joined the
fight to save the nations finances,
urging supporters to buy government
bonds in a campaign kicking off
today which underlines how far the
debt crisis has moved from the busi-
ness pages into everyday life.
News bulletins have been dominat-
ed for months by the crisis, making
esoteric financial terms like
spreads, inverted yield curves and
single A ratings familiar fare for
Italian television viewers.
BTP Day, the brainchild of the
Corriere della Sera newspaper and
Italys banking association, will allow
Italians to buy government bonds,
known as BTPs, without paying the
normal bank commission, and soccer
players are backing the drive.
Some of us are selected to play for
Italy but all of us support our country
and above all, we believe in its
strengths, former national soccer
player Damiano Tommasi, now head
of the Italian footballers association,
told the ANSA news agency.
Thats why we are joining BTP Day
on Monday.
Even in soccer-mad Italy, that may
not be enough to turn back the awe-
some power of the bond markets, but
every little bit will help with up to 8
bn (6.9bn) of BTPs coming on to the
market tomorrow.
Markets have hammered Italian
bonds in recent months as doubts
have mounted over public debt
amounting to 120 per cent of gross
domestic product.
But Italians, some of Europes most
cautious savers, have traditionally
been keen buyers of government
paper, which accounts for about 20
per cent of their total wealth, against
just 1.6 per cent for the French and
7.8 per cent for Germans, according
to Italian bourse figures.
That has encouraged official efforts
to tap into the retail market, with the
Treasury planning to launch direct
sales of new bonds to retail investors
via an online platform next year.
Domestic banks and other
investors hold more than 50 per cent
of Italian government debt, leaving
the country much less dependent on
the movements of foreign investors
than other heavily indebted countries
like Greece.
Soccer stars
in Italy urge
bond buying
HUNGARY hopes that credit rating
agencies Fitch and S&P will wait for
the results of its talks with the
International Monetary Fund (IMF)
and the European Union (EU) before
taking any rating action, a top govern-
ment official said yesterday.
The country, whose economy is
seen among the most vulnerable in
central Europe, returned to the IMF
for help after more than a year with-
out a financing backstop, only to see
its debt downgraded to junk by
Moodys, triggering a market selloff.
The right-of-centre government,
which called the downgrade part of a
speculative attack against the coun-
try, performed a dramatic about-face
and agreed on Friday to mend ties
with the EU, the IMF and the coun-
try's banks to stabilise the economy.
Hungary pleads for
time from agencies
BY HARRY BANKS
EUROZONE

Former Italian
international
Damiano Tommasi
supports the cam-
paign to urge fans
to buy government
bonds
Picture: REUTERS
BY HARRY BANKS
EUROZONE

Eurozone News
17 CITYA.M. 28 NOVEMBER 2011
Belgium plans to form
government this week
BELGIUM may have a government
this week, the countrys chief negotia-
tor in charge of forming a cabinet
Elio Di Rupo said yesterday, after
political parties clinched a deal on
the 2012 budget under pressure from
rising borrowing costs.
The budget agreement was seen as
the last major obstacle to forming a
government among six Belgian par-
ties and came hours after ratings
agency Standard & Poors had down-
graded Belgiums credit to AA from
AA+, pressing the country to act.
We hope to be able to do it (form a
government) during next week. We
still have a few areas on which we
need to work and we believe that we
will do it with the shortest delay pos-
sible, Elio Di Rupo, who is likely to be
the next prime minister, told a news
conference.
Belgium has set a modern-day
record for being without a formal
government. It has been about 18
months since its elections, which is
one reason for its rating downgrade.
EUROZONE

FORMULA One owner CVC Capital

has moved quickly to dismiss specu-
lation ex-M&S boss Sir Stuart Rose is
being lined up to replace Bernie
Ecclestone to run the business.
Contrary to recent media specula-
tion, CVC is not seeking a replace-
ment for Bernie Ecclestone and
intends to retain him as chief execu-
tive of F1, CVC said in a statement.
Reports over the weekend suggest-
ed Formula One has drawn up a
shortlist of candidates to replace
Ecclestone, possibly as soon as next
year. But a spokesperson for CVC said
there was no shortlist and no head-
hunters have been appointed.
City A.M. understands Ecclestone,
81, has no plans to retire in the near
future. Bernie remains firmly in
charge and looks to be very happy
with the job, said a source.
There has been speculation that
Rose, who spent seven years at the
helm of M&S before quitting in
January, was being sounded out to
run Formula One.
City commentators believe CVC is
keen to float the business in Asia next
year, and is looking for a senior busi-
nessman who can capitalise on the
popularity of motor racing in the far
east. Over his decades at the helm of
the company, Ecclestone has turned
Formula One into one of the biggest
sports franchises in the world.
CVC Capital quashes talk
ex-M&S boss is to run F1
BY HARRIET DENNYS
PRIVATE EQUITY

News
18 CITYA.M. 28 NOVEMBER 2011
PUTIN PLOTS RETURN TO PRESIDENCY
Vladimir Putin accepted his ruling party's nomination yesterday to return to Russias
presidency, while accusing foreigners of funding his political opponents in a reminder of
the anti-Western rhetoric that characterised his years in power. Putin, president from
2000-2008 and now prime minister, is expected to easily recapture the presidency in an
election in March. Picture: REUTERS
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News
21 CITYA.M. 28 NOVEMBER 2011
THOMAS Cook has launched a pub-
licity offensive aimed at reassuring
customers of its future as its
incoming chairman, Frank
Meysman, arrives to review the
business, which is expected to
involve a boardroom clearout.
After being saved from collapse
on Friday by a 100m bailout from
its banks, Thomas Cooks interim
chief executive Sam Weihagen pub-
lished an open letter on the web-
site aimed at dispelling customer
fears about its financial stability.
Weihagen insisted Thomas Cook
is an even stronger and more con-
fident company stressing that cus-
tomers holidays were really in
safe hands.
The company has sought to
quash concerns over its holidays
after rivals last week tried to take
advantage and published newspa-
per adverts alluding to its financial
problems.
Last week the 170-year-old firm,
which sells more than 22m holi-
days a year in the UK, had to ask its
banks to come to its rescue for the
second time in six weeks, following
a deterioration in trading condi-
tions.
Under a new deal agreed on
Friday, the syndicate of banks led
by RBS, HSBC, Unicredit and
Barclays, will have the right to take
five per cent of the shares, and will
receive about 10m in fees. The
travel company will pay about six
per cent interest on the emergency
loan.
Thomas Cook said its prelimi-
nary results, which were post-
poned, would be published in the
week of 12 December. It is expected
to announce a radical downsizing,
to pay down its 1.1bn debt, includ-
ing the closure of at least 200 travel
agencies and the loss of 1,000 jobs.
Frank Meysman, the former Sara
Lee executive who takes over as
chairman on Thursday, is expected
to review the firms entire board of
non-executive directors.
Thomas Cook aims
to reassure clients
BY KASMIRA JEFFORD
LEISURE

MINING giant BHP Billiton has

announced a senior management
reshuffle to fill the gaps as chief
financial offer Alex Vanselow steps
down.
Vanselow is set to leave the firm
at the end of February and will be
succeeded by Graham Kerr, who is
currently the president of dia-
monds and specialty products.
In another promotion, market-
ing head Mike Henry will join the
companys group management
committee as chief marketing offi-
cer, reporting to chief executive
Marius Kloppers and based in
Singapore.
BHP Billiton said Vanselow, who
joined the company in 1989 and
rose to his top management posi-
tion in 2006, was leaving to pursue
personal business interests.
Kerr is set to take up the position
of CFO from the start of 2012, and
will be working in Melbourne
rather than his previous base of
Vancouver. Another BHP Billiton
stalwart, he has been with the com-
pany since 1994, though he briefly
worked for another resources com-
pany from 2004-2006.
The firm said that, following
company policy, any awards given
to Vanselow under its five-year
incentive plan will be reduced to
reflect his period of service up
until his departure date.
Those awards must be held for
the duration of the performance
period and will only vest if the per-
formance hurdles are satisfied, it
stated.
The company added that
Vanselow would not be given any
such award for the 2012 financial
year.
BHP Billiton announces reshuffle of
senior management as CFO leaves
MINING

NEWS | IN BRIEF
Centrica eyes bid for RWE assets
Centrica, the owner of British Gas, has
been eying a possible bid for RWEs
North Sea oil and gas assets for up to
2bn (1.7bn). The FTSE 100 energy
company has been working with
bankers from Citigroup, the Telegraph
reported this weekend. The move comes
as German power company RWE looks
to sell assets, including all or part of its
oil and exploration unit RWE-DEA, to
bolster its debt-laden balance sheet.
It is thought RWE-DEAs North Sea oil
and gas assets could be worth between
1bn and 2bn (857bn-1.71bn).
RWE began searching for buyers for
some assets earlier this year after the
German government decided to close
the countrys 17 nuclear power stations
by 2022. It was reported that RWE is
hoping to raise 11bn from divestments.
NSN chief says no more bailouts
The chief executive of Nokia Siemens
Networks (NSN), the worlds second-
largest maker of mobile phone network
equipment, has warned employees NSN
can not expect any more money from its
parent companies, a German magazine
reported yesterday. Parents Nokia and
Siemens have provided capital for the
last time and expect this investment
will provide results, Spiegel reported,
citing a copy of a letter sent from Rajeev
Suri to NSNs 9,000 employees in
Germany.
Ex-Old Mutual chief Jim Sutcliffe could lead a takeover of Phoenix Picture: GETTY
AT&T is considering an offer to divest a
significantly larger portion of
assets than it had initially
expected, in order to salvage
its $39bn (25.3bn) deal to
buy T-Mobile USA,
Bloomberg financial news-
wires reported, citing a per-
son familiar with the
plan. Bloomberg said
the exact size of the
divestiture hasnt been
determined but report-
ed it could be as much
as 40 per cent of T-
Mobile USAs assets.
The divestiture, led
by chairman and ceo
Randall Stephenson
(pictured), is an
attempt to address the concerns of
the Justice Department, which sued
to block the takeover on 31 August,
saying the deal would substantially
lessen competition in the wireless
market, Bloomberg said. The proposal
was dealt another blow on 22
November, as the Federal
Communications Commissions
chairman sought to have it seen by
an administrative law judge.
The proposal, which
could come as early as the
next Justice Department
hearing on 30 November,
might be the only remain-
ing option if the second-
largest US wireless
operator wants to avoid a
lengthy court battle in
its bid to become the
countrys top mobile car-
rier.
AT&T mulls a big
asset sale to save
its T-Mobile deal
BY HARRY BANKS
TELECOMS

McDonalds Olympic mentions by category

Regional News
Topicals
Twitter
Blogs
Other
National News
%
17% 16%
40%
6%
15%
6%
Brought to you by
IN ASSOCIATION with Repskan.com, the media
monitoring and analytics platform, City A.M. is
measuring the relative Olympic media buzz
around the partners for the London 2012
Olympic and Paralympic Games, week by week.
The leaderboard, right, reflects their ranking
over the past week, in this case from
Wednesday 16 November to Wednesday 23
November.
Recently, a mention by the
American athlete Lolo Jones on
Twitter to her 35,800 followers
suggesting she would eat
McDonalds oatmeal at the
Olympic village provided a boost to the brands
positive online Olympic mentions, showing the
importance of understanding who your influ-
encers are, or can be, in different areas of your
marketing activity.
McDonalds enjoys a steady volume of Olympic
mentions regardless of any specific campaigns or
activities targeting online media. As one of the
worlds largest fast food companies, it has
worked hard in recent years to both create a
healthier range of menu options and improve
public awareness of those changes. That is espe-
cially important in relation to its association with
an event that, in part, aims to promote health
and fitness, and Joness tweet helped to boost
that message even further.
Olympic Media Buzz
LONDON 2012 PARTNERS
TOP TEN PARTNERS BY MENTIONS
Brand Position change
BT 2
Lloyds TSB 4
Coca-Cola -3
Visa -2
Samsung 4
BP -2
McDonald's -1
Adidas 3
Omega 5
BMW -1
Old Mutual veteran set to
lead Phoenix Group offer
PRIVATE equity house CVC has
brought in Jim Sutcliffe, the former
chief executive of Old Mutual, to lead
its 1bn takeover bid for closed life
and pension fund group Phoenix, it
was reported yesterday.
CVC is believed to have access to a
data room to conduct due diligence
but declined to comment last night.
Clive Cowderys Resolution has
walked away from a deal after failing
to agree on a valuation but Swiss Re,
whose Admin Re unit specialises in
buying insurers that are closed to
new customers, could make an offer.
Phoenix, created from a restructur-
ing of Pearl last year, remains bur-
dened by 2bn in debt incurred to
finance that deal but is thought to
have received a total of 10 approaches.
MERGERS AND ACQUISITIONS

PEOPLE aged 50 and over are continu-

ing to suffer from a decline in their
quality of life as a result of rising infla-
tion, unemployment and a fall in sav-
ings, research by Saga reveals today.
The Saga quarterly report, conduct-
ed by the Centre for Economics and
Business Research and Populus, ques-
tioned more than 10,000 people over
50 on their living standards, health,
worries and happiness.
It found that whilst older Britons
continued to report declines in their
quality of life relative to last year, fewer
are planning cutbacks in their discre-
tionary spending such as short
breaks or going to the cinema - which
could help boost the economy next
year.
Despite their own economic woes
this year, 33 per cent of older people
are providing financial support to
their children and grandchildren and
around half will donate to charity this
Christmas.
Dr Ros Altmann, Director-General of
Saga and former government pensions
adviser, said: After falling consistently
throughout 2011, I hope that the first
signs of stabilisation in our Quality of
Life index will turn into a solid
improvement in 2012.
It is also heart-warming how much
the over-50s are helping others, despite
high inflation, by supporting family
and charity. These really are generous
generations.
Nevertheless 61 per cent of people
reported the cost of living as a greater
concern than it was 12 months ago,
well above health worries with a third
of people over 50 anticipating that
inflation will be above 6 per cent in a
years time.
On average, they expect it to be 5.2
per cent showing that most expect
their experienced price rises will be
way in excess of the Bank of Englands
target of two per cent over the coming
year.
The report, which represents 21m
people over 50, found that 19 per cent
were cutting back their essential
spending as a result of high inflation,
with 32 per cent reporting they had
cut back on heating.
Saga said that many of those in
their 50s and early 60s were delaying
retirement as a result of rising living
cost, which may help the economy by
ensuring they have higher incomes
than if they were trying to live only on
their pension savings.
NEW Zealands re-elected centre-right
government claimed a mandate yes-
terday to push on with up to $5bn
(2.4bn) worth of asset sales and wel-
fare reforms and said it would quick-
ly get down to forming a new
administration.
The National Party, led by former
foreign exchange dealer John Key,
scored 48 per cent of the vote,
increased its number of seats to 60
from 58 and gained the support of
two small parties to guarantee a
majority in the 121-seat parliament.
Its a pretty strong endorsement of
where the Government sits, and
were confident we'll be able to build
the relationships needed to go ahead
with the programme, Nationals
campaign manager Steven Joyce told
TVNZ.
National campaigned on promises
to consolidate policies of the past
three years and work towards eco-
nomic growth by cutting debt, curb-
ing spending, selling state assets and
returning to a budget surplus by
2014/15.
National plans to sell minority
stakes in state-owned power energy
companies and further reduce the
stake in Air New Zealand. Key has
promised local small investors will
have preference in share sales, with a
10 per cent cap likely on how much
any single investor can hold.
It also plans to reform welfare and
slow down the expansion of its car-
bon trading system.
New Zealands re-elected government
plans asset sales and welfare reform
IRELAND is confident that the 1.3bn
(1.12bn) it will have to inject into
Irish Life & Permanent after the col-
lapse of the sale of its life arm will be
the last capital injection required,
Finance Minster Michael Noonan said
yesterday.
Noonan told broadcaster RTE that
the government had already set aside
1.3bn for the recapitalisation. ILP
suspended the sale of its life insur-
ance arm on Friday and blamed very
challenging market conditions.
Canada Life, a unit of Canadas sec-
ond-largest life insurer Great-West
Lifeco had been the lead candidate to
buy the business, which has an
embedded value of around 1.6bn, a
source said last week.
Faced with a capital hole of nearly
4bn and heavily reliant on emer-
gency funding from the European
Central Bank and Irelands central
bank, the bancassurer had put the
unit, Irelands largest life assurer up
for sale earlier this year.
ILP cash injection is the
last it will get: Noonan
FINANCIAL SERVICES

A potential $2.2bn (1.4bn) debt

restructuring for Drydocks World,
the shipbuilding arm of indebted
Dubai World, is seen facing tough
headwinds with the presence of
hedge funds and a lack of govern-
ment aid seen threatening an amica-
ble deal.
Drydocks has set up a committee to
thrash out an agreement for the
restructuring of its $2.2bn debt pile.
The firm missed a payment deadline
for a $1.7bn three-year loan facility
that it took in October 2008. It also
has another five-year $500m facility
on the restructuring table.
But a potential debt accord may be
hampered by a large portion of the
loans getting offloaded by banks to
hedge funds in secondary market
deals. The loans last exchanged
hands at 49 cents to the dollar in
September, one secondary market
loans trader said. Some of the lend-
ing bank consortium members have
sold to international hedge funds.
Drydocks World faces a
deadlock in debt accord
DEBT RESTRUCTURING

DUTCH cooperative Rabobank has

agreed to sell its majority stake in
private Swiss bank Sarasin to the
Brazilian-Swiss private bank Safra
for 1.04bn Swiss francs (730bn),
scuppering chances of a domestic
tie-up sought by rival Julius Baer.
The deal ended months of uncer-
tainty as Rabo weighed whether and
how to sell its stake in Sarasin.
We now have clarity about our
future, Sarasin chief executive
Joachim Straehle said in a statement.
In Safra, we will have a new and
well capitalised majority sharehold-
er that will reinforce our strong posi-
tion as an independent Swiss private
bank under the Sarasin brand and
that will support our business
model.
The deal ended a bidding war for
Sarasin involving its larger Swiss
rival Julius Baer, Safra and, accord-
ing to media reports, at least one
other bank.
Sarasin had made it clear that it
preferred other bidders over deal-
hungry Julius Baer.
Uncertainty is toxic for private
banks, whose clients put a premium
on stability, consistency and discre-
tion. As a result, protracted bidding
wars are uncommon and hostile
takeovers are practically unheard of.
Unlisted Rabobank was never a
desperate seller and on Friday it left
its reasons for selling unclear,
although the sale is expected to but-
tress its AAA credit rating.
Experts had suggested the Dutch
bank might be eager to avoid associa-
tion with Swiss private banking,
which is under fire from the US and
other countries over undeclared
assets held by their citizens in secret
accounts.
For its part, Sarasin has advocated
a clean-asset strategy.
Safra wins battle for Sarasin
BY HARRY BANKS
BANKING

Over-50s still
feel squeezed
by downturn
BY KASMIRA JEFFORD
RETAIL

BY HARRY BANKS
WORLD ECONOMICS

News
22 CITYA.M. 28 NOVEMBER 2011
PAKISTAN FURY OVER NATO ATTACKS
Fury spread in
Pakistan yesterday
over a NATO cross-
border air attack
that killed 24
Pakistani soldiers
and could under-
mine the US effort to
wind up the war in
Afghanistan. NATO
described the killings
as a tragic unin-
tended incident and
said an investigation
was underway. A
Western official and
an Afghan security
official who request-
ed anonymity said
NATO troops were
responding to fire
from across the bor-
der.
Picture: REUTERS
NEWS | IN BRIEF
Oil field to be reopened
Britains first North Sea oil field,
the Alma field, is to be
reopened by FTSE 250 produc-
er Enquest, according to
reports. The field, originally
called Argyll, was shut down
nearly 20 years ago because
production had dried up. But
Enquest plans to extract more
with modern drill techniques.
Solum in Islamic venture
British-based, sharia-compliant
investment firm Solum Asset
Management will launch the
first investment sukuk in the
first quarter of next year, treat-
ing Islamic bonds as investment
vehicles rather than debt
instruments, its chief executive
said. Unlike traditional sukuk,
which are akin to conventional
debt products, the 200m
Student Accommodation
Investment Sukuk will use equi-
ty to provide holders with an
annual yield of four to six per
cent, said chief executive
Safdar Alam at the company's
launch. Alam said the company
was seeking to delink Islamic
finance products from debt-
heavy conventional finance.
Akamai to buy Cotendo
Akamai Technologies, which
helps companies improve web-
site performance, is in talks to
buy its smaller Israeli rival
Cotendo for more than $300m,
the Calcalist financial daily
reported yesterday. Cotendo
has raised $39m from Sequoia
Capital, Benchmark Capital and
Tenaya Capital, Calcalist said.
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THE private equity house best known
for its investments in LK Bennett and
Jimmy Choo has sold Asco, its oil and
gas business.
Phoenix Equity Partners sold the
fast-growing oil and gas logistics
firm, based in Aberdeen, to Doughty
Hanson & Co, five years after paying
134m for it.
The value of the latest sale has not
been revealed but City A.M. under-
stands it was for under 250m after
an auction run by Lexicon Partners.
Cinven and AEA Investors, the vehi-
cle advised by former BP chief execu-
tive Tony Hayward, were also believed
to have been among the bidders. A
sale worth up to 300m has been
rumoured as recently as last month.
Asco changed hands yesterday in a
transaction with no debt but
Doughty will look to put in some bor-
rowings in future, sources said.
The existing management team
has kept a stake in Asco, which is
seeking fresh capital in order to enter
the next phase of its rapid interna-
tional expansion.
John Gemmell, principal at
Doughty Hanson, which also owns
cinema chain Vue, said they had
bought into Asco because it had per-
formed well during the downturn.
The firm has more than doubled
its revenues from 240m in 2005 to
more than 500m in the past year,
and is now a global brand, despite the
uncertainty facing Britains oil and
gas sector because of George
Osbornes Budget raid on North Sea
oil and gas firms.
Asco is internation-
ally recognised for
its strong and reli-
able service capa-
bilities and
impeccable safety
record, Gemmell
said.
With growing
demand for energy,
the company is well
positioned to bene-
fit from the
trend towards
s pec i al i s t
outsourced
l ogi st i cs ,
particularly
in the
emerging
h i g h
growth oil
and gas
markets.
Asco co-
ordinates
the sup-
ply of
g o o d s ,
such as
dr i l l i ng
e q u i p -
ment and
food, going
to and from oil rigs and platforms. It
has more than 1,600 staff and has
broadened its global presence in the
past few years, opening several bases
across Asia and the Middle East
including in Azerbaijan.
In 2009 it entered the Asia-Pacific
market with the opening of an Asco
Freight Management operation in
Singapore. It also added to its
European network with a Dutch oper-
ation after entering into a joint ven-
ture with the Maritime Services
Centre IJmond group in Holland.
Billy Allan, chief executive of
Asco, said: Over the last
five years Asco has con-
solidated its market-
leading position and
its clear that
Doughty Hansons
aspirations and
enthusiasm for
our business mov-
ing forward will
add significant
momentum as
we move into
our next excit-
ing internation-
al growth
phase.
T w e l v e
months ago
Doughty Hanson
agreed to buy Vue
Entertai nment
from Cavendish
Square Partners,
a joint venture between private equi-
ty group Coller Capital and Lloyds
Banking Group, US hedge fund Och-
Ziff and existing management. The
deal valued Britains third-largest cin-
ema chain at around 450m.
Doughty Hanson was set up by Sir
Nigel Doughty and Richard Hanson
in 1984 and has gone on to become
one of the biggest private equity and
fund management firms in Europe.
Doughty, pictured left, is the owner
of Nottingham Forest FC, his home-
town club. He stepped down as chair-
man last month, however, when Steve
McClaren quit and claimed the club
lacked ambition.
He also gave the Labour party
1.01m in the run-up to the last gen-
eral election, when many big busi-
ness donors were wooed to the
Conservatives by pledges to cut red
tape and to scrap Gordon Browns
planned national insurance rise.
Doughty is also a committed phi-
lanthropist, having set up the
Doughty Hanson Charitable
Foundation, which fights poverty, dis-
ability and homelessness and pro-
motes healthcare and education, and
his own Doughty Family Foundation,
set up with wife Lucy.
Phoenix, a mid-market buyout
firm, sold out of Jimmy Choo, the
iconic ladies shoe designer, in 2004
but still has a stake in upmarket
clothes retailer LK Bennett, into
which it invested with Sirius Equity
three years ago.
BARGAIN website Groupon is poised
to move out of the Tech City develop-
ment in East London, according to
reports, becoming the latest in a
number of big-hitting companies to
turn its back on the area.
Groupon has been operating out of
temporary offices in the zone, which
stretches from Shoreditch to
Stratford. But the firm is now report-
edly close to signing a deal to relocate
to near Monument.
The Tech City zone, also known as
Silicon Roundabout, has sought to
build on the number of small tech-
nology firms springing up in the area
by luring larger firms there. The proj-
ect had already been dealt a blow in
September by Twitters decision to
choose Dublin as its headquarters.
However later that month Google
signed a 10-year lease on a building in
the zone it intended to make avail-
able to start-ups.
A source close to Groupon
declined to comment on the news,
but said whether the company based
itself in Tech City or elsewhere, it
remained committed to London.
The UK is a key market to
Groupon. Being in London is impor-
tant to us, the source said.
Martin Warner, online entrepre-
neur and founder of Tech
Entrepreneurs Week, said: The issue
is trying to force tech companies into
a geographical boundary when the
benefits are not attractive enough
yet.
Groupon mulls move from temporary
Tech City base to Square Mile office
A BRITISH energy consultancy will
list on the Alternative Investment
Market (AIM) today with a 10.6m
value. Inspired Energy, an energy pro-
curement and management firm,
raised 3.4m before expenses with a
placing of 111,651,668 ordinary shares
at 3p each.
The firm, set up by Janet Thornton
in 2000, works with energy intensive
corporates and advises and procures
gas and electricity for its customers.
Joining AIM today provides
Inspired Energy with an excellent
springboard for the companys next
phase of growth, Thornton said.
The firm, based in Kirkham,
Lancashire, generated revenue of
2.86m for the year to June.
The share prospectus shows
Inspireds directors are subject to a
lock-in which means they cannot sell
their stake until the 2014 results are
published, unless there is a surge in
demand for the stock from institu-
tional investors.
Energy company feeling
Inspired as it joins AIM
CAPITAL MARKETS

IRAQ signed a final $17bn (11bn)

deal with Royal Dutch Shell and
Mitsubishi yesterday to capture flared
gas at southern oilfields, a project
that should boost production of badly
needed electricity.
The 25-year project, one of the
largest Iraq has signed with foreign
energy firms, is meant to help har-
ness more than 700m cubic feet per
day of gas being burned off at south-
ern fields and will ultimately handle
2bn cubic feet per day, officials said.
This day represents a historic
change in the Iraqi oil industry ... the
best utilisation of (associated) gas to
meet the increasing needs for gas in
Iraq, Luaibi said at a signing ceremo-
ny attended by Shell chief executive
Peter Voser.
OPEC member Iraq has signed a
series of deals with foreign oil compa-
nies to modernise its energy industry
after years of war and economic sanc-
tions.
Its official goal to raise production
capacity to 12m bpd by 2017 would
vault it into the top echelon of global
producers, although officials say 8m
bpd capacity is more realistic.
Increased crude production is
expected to bring huge increases in
associated gas output and Iraq may
soon produce more gas than it can
use, opening up the possibility of gas
exports.
The Shell deal will involve the cre-
ation of the Basra Gas Co joint ven-
ture, in which the government will
hold 51 percent, Shell 44 per cent and
Mitsubishi five per cent.
The project aims to capture gas at
Iraqs workhorse field, Rumaila, as
well as Zubair and West Qurna.
Intermittent electricity is one of
Iraqis major complaints against their
government. Power supply is about
half of demand.
Shell in $17bn gas contract
BY HARRY BANKS
GAS AND OIL

Doughty Hanson in deal for

global oil and gas firm Asco
BY PETER EDWARDS
PRIVATE EQUITY

BY THOMAS MCMAHON
PROPERTY

Bought cinema chain Vue Entertainment

in November 2010 in a deal valuing the busi-
ness at 450m. Doughty Hanson reportedly
beat rival offers from BC Partners and the
private equity arm of Ontario Municipal
Employees Retirement System.
Doughty Hanson hired JP Morgan as an
adviser in March as it considered a sale,
flotation or re-financing of Spanish bus firm
Avanza Group, Spains second-largest bus
company after Alsa.
Other current investments include indus-
trials group HellermannTyton, which could be
sold for up to 800m next year, high-end lug-
gage and business accessory business Tumi,
and Zobele, an Italian manufacturer of elec-
tric air fresheners and insecticide products.
Previous investments include sportswear
brand Umbro, upmarket watch firm Tag
Heuer and the Priory rehabilitation group.
FAST FACTS | DOUGHTY HANSON
News
24 CITYA.M. 28 NOVEMBER 2011
NEWS | IN BRIEF
AT&T hacking suspects arrested
Philippine police and the FBI have arrest-
ed four people over a hacking operation
that targeted customers of US telecom-
munications giant AT&T to funnel money
to a Saudi-based militant group. Those
arrested in Manila were paid by the same
group the Federal Bureau of
Investigation accuses of having funded
the November 2008 attacks in Mumbai,
the Philippines' Criminal Investigation
and Detection Group (CIDG) said. The
hacking activity resulted in almost $2m
in losses incurred by AT&T, the CIDG said
in a statement.
Charoen in $2bnThai deal
Charoen Pokphand Foods, a Thai agricul-
tural giant, has agreed to acquire 74.2
per cent of CP Pokphand Co, its Hong
Kong-listed affiliate, in a deal potentially
worth more than $2bn (1.3bn). CPF will
gain access to markets in China and
Vietnam with this deal. According to a
statement, the Bangkok-listed company
will buy 18.8bn CPP shares at HK$0.90
each, where its share price closed on
Thursday. Trading in CPP in Hong Kong
was suspended on Friday pending this
announcement and will resume today.
Ontario Teachers shelves sale
The Ontario Teachers' Pension Plan has
shelved plans to sell its 80 per cent stake
in Maple Leaf Sports and Entertainment
Ltd, the trophy asset owner of
Toronto's big-league hockey and basket-
ball teams. Teachers, one of Canada's
largest pension fund administrators,
began looking into a sale in March.
Vue is owned by Doughty Hanson
UK CONSUMERS are expected to kick-
start the busiest online shopping day
of the year today, with Christmas shop-
pers predicted to spend more than
350,000 each second on their Visa
cards, the company said.
The day has been coined Cyber
Monday in the US and Visa Europe
expects 4.8m purchases worth 303m
to be made using Visa cards.
The payment services firm said this
reflects a 12 per cent rise compared
with last years Cyber Monday, as con-
sumers increasingly turn to the inter-
net to take advantage of cheap deals
online.
Visa said the Monday closest to
December has historically been the
busiest day for e-tailers, when many
consumers have just received their
November pay packages.
Traditionally, consumers spend the
weekend browsing the shops before
logging on to buy their gifts the follow-
ing Monday. Sales are expected to peak
at lunchtime and in the early evening
as workers return home.
Research by Deloitte forecasts
online retail sales to rise by 15 per cent
in December compared with the same
time last year, when heavy snowfall
forced some major retailers to stop tak-
ing orders because delivery became
impossible.
Assuming no repetition, continued
growth in click and collect and
increasing access through mobile
phones and tablets will help boost
sales, Ian Geddes, UK head of retail at
Deloitte, said.
This year total online retail sales,
which accounts for 11 per cent of the
total annual retail market, will exceed
30bn for the first time, the accoun-
tacncy firm said.
Richard Hyman, strategic retail
adviser to Deloitte, said: Christmas
2011 promises to be the most impor-
tant moment in retail trading we have
seen for many years.
Visa said it will process almost 7m
online transactions today.
DITCH CYBER MONDAY? P33
TRAVELODGE has joined forces with
Waitrose, the supermarket chain, to
build three mixed use hotel and retail
sites in a 27m scheme.
The budget hotel chain said yester-
day that it is also looking at 25 other
sites next to big supermarkets in a
130m expansion that is expected to
create about 600 jobs.
The local corner shop market has
become a battleground for Britains
supermarket giants as they try to
build up their positions in a still frag-
mented part of the market.
Guy Parsons, Travelodge chief exec-
utive said: To fuel our development
programme we have capitalised on
the UKs supermarkets expansion
plans; by co-developing a hotel on top
of a Metro-style store.
The reason we work so well with
supermarkets from a development
perspective is the ease in which a
hotel and ground-floor supermarket
can be built. They are also able to
attract finance relatively easily, even
in this difficult environment, he
added.
The company will build three hol-
tels next to Waitrose outlets in Sidcup
in Kent, Vauxhall, south London and
Aylesbury, Buckinghamshire, which
are due to open in the course of next
year.
So far this year, Travelodge, which
operates over 490 hotels across the
UK, Ireland and Spain, has opened a
site with Tesco in North London and
Morrisons in Manchester.
Travelodge bets on convenience stores
to spur 130m budget hotel expansion
JOHN LEWIS said retail sales fell 1.2
per cent last week compared with
the same week last year, as
consumers continue to face severe
pressure from high inflation and
muted wage growth.
The department store group post-
ed sales for the week ending 26
November of 98.7m, jumping 15.9
per cent on the previous week as
Christmas draws nearer.
However, IHS Global Insights
chief economist Howard Archer
pointed out that John Lewis has
four more stores trading than a year
ago and that prices are significantly
higher than a year ago.
He said the dip in sales from the
retail bellwether fuels suspicion
that retailers are having a very
challenging Christmas, despite the
office for National Statistic
reporting a rise in retail sales last
month.
John Lewis takings down
from this time last year
RETAIL

THE MONDAY after Thanksgiving is

established as a peak day for US
online retail, and innovative UK busi-
nesses are starting to import the tra-
dition. Elinor Osila and Isobel
Beauchamp, founders of
DegreeArt.com, noticed their sales
peak on Cyber Monday last year, and
now theyre prepared to capitalise.
The company, which offers work by
students and recent graduates, has
strengthened its twitter presence and
opened a facebook shop in anticipa-
tion of increased interest.
Gift vouchers are another strategy
the company hopes will give its sales
a boost as the Christmas season gets
into gear, and companies have been
buying them for employees.
Osila said she has seen an increase
in purchases in recent months by
buyers inside the Square Mile.
People are seeing art as something
that is going to grow in value, she
said.
Business has been strong in recent
months despite gloomy news from
the high street and Olisa believes
online retail is the future.
People need to be aware of the
importance of online, she said.
RETAIL

Online sales
to hit 350k
each second
BY KASMIRA JEFFORD
RETAIL

BY KASMIRA JEFFORD
RETAIL

News
25 CITYA.M. 28 NOVEMBER 2011
Its comeback time for bond market vigilantes
G
UESS where well be getting our
cues from next week (hint: its
an easy question). The answer,
of course, is once again from
the bond markets and the politicians.
Fantastic. So something new to look
forward to, then (or rather not).
Glancing at the agenda, the most
important political event to be aware
of is the Eurogroup meeting of
finance ministers tomorrow; yes, dear
readers, ahead even of George
Osbornes Autumn statement, which
is also being published tomorrow.
Greece is hoping to get its hands on
a long awaited 8bn aid instalment,
but the release of the sixth tranche of
aid from Greeces first bailout agree-
ment has been dependent on written
confirmation from Greeces political
leaders that they would stick to
reforms necessary to receive Greeces
second bailout (agreed back in July).
Hopefully well hear more about
the details of the second Greek
bailout. It would be surprising not to
hear more noise also about necessary
bank recapitalisations and how to
make the EFSF more effective. We
shall soon see.
It became very hard last week to
avoid the jittery moves in the core
European bond markets. We saw a
terrible German 10-year bond auc-
tion, and core European spreads
widen against their German counter-
parts, just as had been the case with
periphery debt against core Europe.
At the end of last week, Italian yields
had once again jumped after an
expensive bond auction, and core
Germany and France saw yields
widen as well mostly on general
worries and a growing lack of confi-
dence in Eurozone sovereigns.
This week supply will be in vogue
again note that well see bond auc-
tions from Italy and Belgium on
Monday, another Italian auction on
Tuesday, Spain going to the market
on Thursday, and last, but not least,
another core bond auction on
Thursday...this one from France.
Granted, these auctions may not be
the largest, but given the markets
willingness to short a European coun-
trys bonds on any given day, they will
still be watched closely.
Given all of the above, the
European data seems almost irrele-
vant. If anything, having already told
us it would give us an update on the
USs sovereign rating before
December, there could be more focus
on whether ratings agency Fitch
stamps the US with a negative out-
look or even cuts its AAA status.
Louisa Bojesen is a CNBC anchor
CNBC COMMENT
LOUISA BOJESEN
E-TILLS ARE RINGING FOR CYBER MONDAY
Elinor Olisa and Isobel Beauchamp, founders of DegreeArt.com
The online company bringing American
tradition to British Christmas retailing
Barclays Wealth
Barclays wealth management arm has
appointed Januar Tjandra as head of
greater China, based in Hong Kong.
Tjandra will join on 5 December from
Goldman Sachs, where his roles included
co-head of the Hong Kong office and
head of the Taiwan desk.
Lloyds Bank Corporate Markets
Darren Coote has been appointed as
global head of FX spot trading, based in
London. Coote joins from UBS, where he
was global head of FX spot.
Aon Hewitt
The HR consultancy has appointed
Simon Davies to lead its UK defined con-
tribution consulting team. Davies joins
from Standard Life, where he was head
of corporate client relationships.
Cheapflights Media
The travel network has appointed its
chief technology officer Chris Martin to
the board. Joining Martin on the board
is Alan Martin, who has been confirmed
as chief financial officer after taking the
role on an interim basis in July.
Corven Consulting
The change advisory firm has hired
Nicholas Beatty and John Hardy as
directors in its financial advisory team,
and Jeremy Roberts as a principal.
Beatty moves from BNP Paribas corpo-
rate finance and Hardy and Roberts join
from Lansdowne Capital.
GKAM
Glendevon King Asset Management has
appointed Andrew Grant and Jeremy
Soames to its advisory board. Grant is
the founder of financial PR firm Tulchan
and Soames is currently chairman of
Barbican Managing Agency, after spend-
ing 20 years at NM Rothschild Group.
Unicredit
Michael Baptista has been appointed as
global head of research to succeed
Thorsten Weinelt, who becomes the new
head of private wealth management at
HypoVereinsbank. Baptista moves from
RBS-owned ABN Amro, where he led
the global cash equity team.
FOA
The Futures and Options Association has
appointed Blake Stephenson as manag-
er, regulation. Stephenson joins from the
Financial Services Authority.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Cable and Wireless Worldwide
35
30
25
20
15
Sep Oct Nov
p
14.88
25 Nov
CABLE AND WIRELESS
Investec rates the telecommunications firm buy, with a target of 53p,
down from 59p. The broker says that despite a lack of interest from buyers
after its poor first half results there is growing interest from other UK
telecommunications companies. The companys woes stem from poor man-
agement, the broker says, and the new chief executive Gavin Darby has a
track record in delivering efficiency.
ANALYSIS l Blacks Leisure
12
10
8
6
4
2
Sep Oct Nov
p
3.88
25 Nov
BLACKS LEISURE GROUP
Numis rates the outdoor leisurewear vendor sell. The broker has lowered
its target price to 3.5p following a weaker than predicted three months of
trading. Numis believes business has deteriorated further through
November, and the company will struggle to reverse its decline. Christmas
trading will determine results to the end of the year on 12 February, and
the company has lowered its expectations for the period.
ANALYSIS l Marks And Spencer
340
330
320
310
300
Sep Oct Nov
p
307.60
25 Nov
MARKS AND SPENCER
Shore Capital rates the retailer buy. The broker says although the new
Champs Elysees store itself is small, its opening shows commitment to
international expansion which, along with e-commerce, is essential to the
companys growth prospects. Shore says the company is holding its own in
clothing and food in its core market and despite the tough economic
climate sees the opportunity for growth in earnings.
Mayer Brown
The global law firm has hired Bernd Bohr as a
partner in the corporate and securities practice.
Bohr is relocating from the New York office of
Allen & Overy to support the expansion of
Mayer Browns US M&A and capital markets
practice in Europe. He specialises in SEC-regis-
tered securities offerings, public and private
M&A transactions and cross-border transac-
tions. Prior to joining Mayer Brown, Bohr
worked for Allen & Overy in New York, London,
Switzerland and Hong Kong.
News
26 CITYA.M. 28 NOVEMBER 2011
WALL STREET WEEK AHEAD
U
S investors came to the
Thanksgiving holiday table on
Thursday mostly thankful that
the week was a short one, or
losses could have been larger.
As another round of news and
bond auctions from Europe begins
this week, traders will watch closely
sovereign bond yields that have kept
markets on edge.
Yields rose in almost every Euro-
zone country last week, and Germany
failed to find enough bids for a 10-
year auction.
The S&P 500 reacted by posting a
second straight week of declines and
its worst week in two months.
Politicians are scrambling to find a
way out of a two-year-old sovereign
debt crisis in the Eurozone and a visit
to Washington from top European
Union officials, as well as a meeting
of Eurozone finance ministers, will
provide the market with headlines
and possibly add to uncertainty.
With the spectre of rising yields,
France, Britain, Italy, Belgium and
Spain are holding debt sales next
week. The direction of bond yields
will determine the direction of equity
markets.
Politicians are trying to buy them-
selves time so austerity measures kick
in and impact budgets and deficits
and markets become more forgiving
and rates come down, said Wasif
Latif, vice president of equity invest-
ments at the San Antonio, Texas-
based USAA Investment
Management.
The credit market and fixed
income are a little bit more in the eye
of the storm; thats where the issue is
rising, so equities are more reac-
tionary, he said. You may continue
to see more of the same.
Investors have worried about rising
borrowing costs in many Eurozone
nations, but Italy, the third-largest
Eurozone economy, has grabbed most
of the focus.
On Friday Rome paid a record 6.5
per cent to borrow for six months and
almost 8 per cent to issue two-year
zero coupon bonds.
Many market participants have
said that the sharply differentiated
risk on and off trades that the Euro
zone crisis has generated has seen
equities being sold as an asset class,
with little or no difference between
strong and weak balance sheets and
earnings reports. But a wedge has
opened at least from a global perspec-
tive, as data show stocks of companies
with more exposure to Europe are
underperforming.
US President Barack Obama will
meet today with European Council
President Herman van Rompuy and
European Commission President Jose
Manuel Barroso, and Europes
response to the two-year sovereign
debt crisis is expected to top the agen-
da.
The only thing that will come out
of that is speculation, said Todd
Salamone, vice president of research
at Schaeffers Investment Research in
Cincinnati, referring to the meeting
in Washington.
It will come down to the US try-
ing to convince European leaders to
get something in place to solve this
crisis.
Not many hopes are set either on
tomorrows meeting where Eurozone
finance ministers are expected to
agree on how to further strengthen
the regions bailout fund.
On Thursday, European Central
Bank President Mario Draghi presents
the banks annual report to the
European parliament.
Traders keeping a close eye
on FTSE after drop to 5,100
G
LOBAL equities continued to
tumble last week with many
indices crashing through tech-
nical support areas. At the start
of the week, the FTSE gapped below
its 50-day moving average around
5,350 and went on to trade below
5,100 briefly on Friday. This level is
not only psychologically significant,
but also important in technical
terms.
It marks the 38.2 per cent
Fibonacci retracement of the March
2009 May 2011 rally, and the 50 per
cent retracement of the financial cri-
sis sell-off from October 2007 to
March 2009. Traders will be watching
the FTSEs behaviour closely around
this level over the coming weeks.
It has been a difficult time for
stock market bulls and many are
choosing to stand aside for now. The
alternative is to attempt to catch a
falling knife although for many the
memories of the crash in 2008
remain fresh. Despite this, some
investors are still hoping for an end-
of-year rally. But the ongoing debt cri-
sis across Europe continues to weigh
on sentiment.
GFT quotes two-way prices on stock
indices around the clock, even when
the underlying markets are closed.
The FTSE 100 index is called to open
down 40 points at 5125. The German
DAX is expected to open down 58
points at 5435, and the French CAC
40 is forecast to open down 25 points
at 2832.
On top of the problems in Europe,
investors were also unnerved by
Wednesdays surprisingly weak
Chinese Manufacturing PMI. There is
an update for this number on
Thursday, with bullish investors hop-
ing for an upward revision.
Today sees the release of New
Home Sales from the US, with addi-
tional housing data out tomorrow
when the S&P/Case Shiller House
Price Index is published, closely fol-
lowed by the Conference Board
Consumer Confidence Index.
Wednesday sees another round of
meetings between European finance
ministers together with an update on
Eurozone inflation. On Thursday,
members of the Banks MPC testify to
the Treasury Committee on inflation
and the economic outlook. Well also
see the latest UK Manufacturing PMI.
Rounding off the week is Fridays
US Non-Farm Payroll number. Job cre-
ation fell to just 80,000 last month,
well below the 125,000 threshold
required to absorb fresh entrants into
the labour market.
Martin Slaney is director of global prod-
uct management at GFT
MARTIN ON
THE MARKETS
MARTIN SLANEY
p
23Sep 5Sep 13Oct 2Nov 22Nov
5,800
5,000
5,200
5,400
5,600
ANALYSIS l FTSE
5,164.65
25 Nov
27Sep 7Sep 17Oct 4Nov 24Nov
6,400
5,400
5,200
5,600
5,800
6,000
6,200
ANALYSIS l Dax
5,492.87
25 Nov p
EU SHARES
AIR LIQUIDE...............86.54 -1.96 100.65 80.90
ALLIANZ .....................69.56 -2.49 108.85 56.16
ANHEUS-BUSCH INBEV42.16-0.68 45.11 33.85
ARCELORMITTAL......12.14 -0.94 28.55 10.47
AXA...............................9.03 -0.48 16.16 7.88
BANCOSANTANDER ..5.38 -0.19 9.20 5.05
BASF SE .....................48.15 -1.58 70.22 42.19
BAYER.........................44.40 -1.75 59.44 35.36
BBVA.............................5.72 -0.21 9.17 4.94
BMW............................51.33 -2.22 73.85 43.49
BNP PARIBAS ............26.85 -1.22 59.93 22.72
CARREFOUR..............17.84 -0.60 34.12 14.66
CRH PLC.....................12.50 -0.30 17.40 10.28
DAIMLER ....................30.40 -1.23 59.09 30.21
DANONE .....................46.30 -1.23 53.16 41.92
DEU.BOERSE OFFRE41.53 -0.99 55.75 35.46
DEUTSCHE BANK......25.64 -1.32 48.70 20.79
DEUTSCHE TELEKOM 8.99 -0.31 11.38 7.88
E.ON............................16.66 -0.69 25.54 12.50
ENEL .............................2.92 -0.25 4.86 2.81
ENI ...............................15.29 -0.56 18.66 11.83
FRANCE TELECOM ...11.97 -0.46 16.95 11.12
GDF SUEZ...................18.58 -0.74 30.05 18.32
GENERALIASS. .........11.97 -0.30 17.05 10.34
IBERDROLA .................4.66 -0.21 6.50 4.29
INDITEX.......................63.60 -1.64 69.40 50.92
INGGROEP CVA..........5.03 -0.29 9.50 4.21
INTESA SANPAOLO.....1.15 -0.07 2.47 0.85
KON.PHILIPS ELECTR13.54 -0.43 25.45 12.01
L'OREAL .....................76.03 -0.95 91.24 68.83
LVMH.........................108.15 -4.25 132.65 94.16
MUNICH RE ................86.77 -1.39 126.00 77.80
NOKIA...........................4.59 -0.23 8.49 3.33
REPSOL YPF ..............20.60 -0.74 24.90 17.31
RWE.............................27.72 -1.28 55.88 21.22
SAINT-GOBAIN...........28.06 -0.95 47.64 26.07
SANOFI .......................48.56 -0.97 56.82 42.85
SAP .............................42.85 -0.67 46.15 32.88
SCHNEIDER ELECTRIC36.68 -2.30 61.83 35.94
SIEMENS.....................70.00 -2.01 99.39 62.13
SOCIETE GENERALE16.01 -0.66 52.70 14.32
TELECOMITALIA.........0.81 -0.04 1.16 0.70
TELEFONICA..............13.41 -0.50 18.75 12.50
TOTAL .........................36.02 -1.09 44.55 29.40
UNIBAIL-RODAMCOSE125.50-3.75162.95 124.05
UNICREDIT ...................0.73 -0.02 2.03 0.64
UNILEVER CVA ..........23.81 -0.41 25.13 20.90
VINCI ...........................29.83 -1.24 45.48 29.49
VIVENDI ......................15.86 -0.40 22.07 14.10
VOLKSWAGEN VORZ115.25 -7.05 152.20 86.40
Price Chg High Low Price Chg High Low
WORLDINDICES
US SHARES
3M.................................76.13 0.59 98.19 68.63
ABBOTTLABS............52.05 -0.30 55.61 45.07
ALCOA...........................8.95 0.07 18.47 8.45
ALTRIA GROUP...........27.25 0.13 28.14 23.20
AMAZON.COM...........182.40 -6.59 246.71 160.59
AMERICAN EXPRESS 45.00 -0.10 53.80 41.25
AMGEN INC.................54.65 -0.29 61.53 47.66
APPLE........................363.57 -3.42 426.70 306.56
AT&T.............................27.41 -0.14 31.94 27.20
BANK OFAMERICA......5.17 0.03 15.31 5.11
BERKSHIRE HATAWB72.89 0.14 87.65 65.35
BOEING CO.................62.78 0.42 80.65 56.01
BRISTOL MYERS SQUI30.16 0.01 33.27 20.05
CATERPILLAR.............86.72 -1.04 116.55 67.54
CHEVRON....................92.29 -1.46 110.01 80.41
CISCOSYSTEMS ........17.50 0.10 22.34 13.30
CITIGROUP..................23.63 0.12 51.50 21.40
COCA-COLA................64.74 -0.13 71.77 61.29
COLGATE PALMOLIVE86.73 0.25 94.89 74.86
CONOCOPHILLIPS .....66.14 -0.79 81.80 58.65
CVS/CAREMARK ........36.85 -0.19 39.50 30.49
DU PONT(EI)DE NMR.43.86 -0.22 57.00 37.10
EXXON MOBIL.............73.90 -0.68 88.23 63.47
GENERAL ELECTRIC .14.70 -0.03 21.65 14.02
GOOGLE A.................563.00 -7.11 642.96 473.02
HEWLETTPACKARD..25.39 -0.39 49.39 19.92
HOME DEPOT..............36.47 -0.05 39.38 28.13
IBM.............................177.06 -0.89 190.53 141.28
INTEL CORP................22.73 0.03 26.78 19.16
J.P.MORGAN CHASE..28.48 0.10 48.36 27.85
JOHNSON & JOHNSON61.27 -0.72 68.05 57.50
KRAFTFOODS A ........34.32 0.09 36.30 24.30
MC DONALD'S CORP.92.10 0.23 95.45 72.14
MERCK AND CO.NEW33.16 -0.03 37.65 29.47
MICROSOFT ................24.30 -0.17 29.46 23.65
OCCID.PETROLEUM..86.69 -1.08 117.89 66.36
ORACLE CORP ...........28.74 -0.26 36.50 24.72
PEPSICO......................62.49 0.09 71.89 58.50
PFIZER.........................18.45 0.00 21.45 16.25
PHILIP MORRIS INTL..71.31 0.29 73.46 55.85
PROCTER AND GAMBLE61.00-0.06 67.72 56.57
QUALCOMMINC.........51.86 -0.17 59.84 45.98
SCHLUMBERGER.......66.37 -0.13 95.64 54.79
TRAVELERS CIES.......53.41 0.65 64.17 45.97
UNION PACIFIC...........95.16 -0.84 107.89 77.73
UNITED TECHNOLOGIE71.04 0.07 91.83 66.87
VERIZON COMMS.......35.35 0.00 38.95 31.60
WAL-MARTSTORES...56.89 0.25 59.40 48.31
WALTDISNEY CO.......33.51 0.11 44.34 28.19
WELLS FARGO& CO .23.51 0.30 34.25 22.58
Price Chg High Low Price Chg High Low
FTSE 100 . . . . . . . . . . . . . . 5164.65 37.08 0.72
FTSE 250 INDEX . . . . . . . . 9640.29 38.40 0.40
FTSE UK ALL SHARE ....2661.18 17.63 0.67
FTSE AIMALL SH . . . . . . . . 674.46 -1.06 -0.16
DOWJONES INDUS 30 ..11231.78 -25.77 -0.23
S&P 500. . . . . . . . . . . . . . . . 1158.67 -3.12 -0.27
NASDAQCOMPOSITE ...2441.51 -18.57 -0.75
FTSEUROFIRST300 . . . . . . 907.92 8.42 0.94
NIKKEI225AVERAGE....8160.01 -5.17 -0.06
DAX 30PERFORMANCE..5492.87 64.76 1.19
CAC 40 . . . . . . . . . . . . . . . . 2856.97 34.72 1.23
SHANGHAISE INDEX ....2380.22 -17.33 -0.72
HANG SENG. . . . . . . . . . . 17689.48 -245.62 -1.37
S&P/ASX 20INDEX ......2390.00 -44.30 -1.82
ASX ALL ORDINARIES ...4057.60 -57.70 -1.40
BOVESPA SAOPAOLO..54894.49 -385.39 -0.70
ISEQOVERALL INDEX ...2521.97 9.31 0.37
STI . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00
IGBM. . . . . . . . . . . . . . . . . . . 779.75 4.18 0.54
SWISS MARKETINDEX...5395.61 38.65 0.72
Price Chg %chg Price Chg %chg Price Chg %chg
LONGDONCEFIXAM.............................................1676.00 -23.00
SILVERLDNFIXAM ....................................................31.30 -0.46
MAPLELEAF1OZ ......................................................33.64 0.79
LONPLATINUMAM .................................................1535.00 -14.00
LONPALLADIUMAM.................................................570.00 -17.00
ALUMINIUMCASH...................................................2002.00 10.00
COPPERCASH........................................................7271.00 96.00
LEADCASH.............................................................1982.00 26.00
NICKELCASH........................................................17200.00 55.00
TINCASH ..............................................................20500.00 -200.00
ZINCCASH..............................................................1897.00 -6.00
BRENTSPOTINDEX..................................................107.84 0.27
SOYA .......................................................................1122.50 0.00
COCOA....................................................................2246.00 0.00
COFFEE ....................................................................231.60 0.00
KRUG ......................................................................1755.60 13.20
WHEAT ......................................................................142.50 1.25
COMMODITIES CREDIT&RATES
BoE IR Overnight......................................................................0.500 0.00
BoE IR 7 days ..........................................................................0.500 0.00
BoE IR 1 month........................................................................0.500 0.00
BoE IR 3 months......................................................................0.500 0.00
BoE IR 6 months......................................................................0.500 0.00
LIBOR Euro - overnight ...........................................................0.624 0.00
LIBOR Euro - 12 months..........................................................2.018 0.00
LIBOR USD - overnight ............................................................0.143 0.00
LIBOR USD - 12 months ..........................................................1.051 0.01
HaIifax mortgage rate...............................................................3.990 0.00
Euro Base Rate.........................................................................1.500 0.00
Finance house base rate .........................................................1.000 0.00
US Fed funds ............................................................................0.250 0.00
US Iong bond yieId...................................................................2.920 0.08
European repo rate ..................................................................0.371 -0.02
Euro Euribor..............................................................................0.911 0.00
The vix index.............................................................................34.47 0.49
The baItic dry index..................................................................1.814 -0.01
Markit iBoxx............................................................................238.32 -1.09
Markit iTraxx ...........................................................................206.14 -1.18
BAE Systems . . . . . .255.8 4.4 361.1 248.1
Chemring Group. . . .389.8 -21.9 736.5 368.8
Cobham . . . . . . . . . . .166.5 0.6 236.5 163.6
Meggitt . . . . . . . . . . . .365.5 6.1 397.6 304.9
QinetiQ Group. . . . . .121.5 -0.5 136.3 101.5
RoIIs-Royce Group. .678.0 9.0 738.0 557.5
Senior. . . . . . . . . . . . .162.0 4.1 190.6 132.6
UItra EIectronics . . .1408.0 -12.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .169.6 0.7 245.0 157.0
BarcIays. . . . . . . . . . .155.7 3.2 333.6 138.9
HSBC HoIdings. . . . .467.4 0.6 730.9 456.4
LIoyds Banking Gr . . .23.2 0.8 69.6 21.8
RoyaI Bank of Sco . . .18.7 0.8 49.0 17.3
Standard Chartere .1273.5 5.5 1878.0 1169.5
AG Barr . . . . . . . . . .1121.0 -23.0 1395.0 1031.0
Britvic. . . . . . . . . . . . .323.0 -2.1 503.5 289.9
Diageo . . . . . . . . . . .1295.5 -2.0 1344.0 1112.0
SABMiIIer . . . . . . . . .2118.0 22.0 2354.5 1979.0
AZ EIectronic Mat . . .228.6 -2.5 338.1 206.1
Croda Internation . .1712.0 24.0 2081.0 1433.0
EIementis. . . . . . . . . .132.5 2.9 187.4 107.5
Johnson Matthey . .1739.0 14.0 2119.0 1523.0
Victrex . . . . . . . . . . .1100.0 19.0 1590.0 1025.0
YuIe Catto & Co. . . . .148.7 0.3 253.0 144.9
C/$ 1.3229 0.0117
C/ 0.8565 0.0048
C/ 102.82 0.1122
/C 1.1676 0.0066
/$ 1.5445 0.0050
/ 120.05 0.5436
FTSE100
5164.65
37.08
FTSE250
9640.29
38.40
FTSEALL SHARE
2661.18
17.63
DOW
11231.78
25.77
NASDAQ
2441.51
18.57
S&P500
1158.67
3.12
RPC Group . . . . . . . .316.5 -8.2 384.8 215.4
Smiths Group . . . . . .883.5 3.5 1429.0 867.0
Brown (N.) Group . . .246.4 -0.3 311.2 241.9
Carpetright . . . . . . . . .381.0 -9.6 835.5 380.0
Debenhams . . . . . . . . .56.7 -0.4 75.7 51.2
Dignity . . . . . . . . . . . .812.5 2.5 854.5 645.0
Dixons RetaiI . . . . . . .10.3 0.3 26.5 9.4
DuneImGroup. . . . . .431.0 -8.9 550.0 383.9
HaIfords Group . . . . .323.1 3.1 459.7 268.6
Home RetaiI Group. . .76.2 1.6 235.0 72.5
Inchcape . . . . . . . . . .300.6 2.6 425.4 268.1
JD Sports Fashion . .713.0 -42.0 1030.0 700.0
Kesa EIectricaIs . . . . .81.7 -3.2 174.0 78.4
Kingfisher . . . . . . . . .247.0 1.9 287.1 217.0
Marks & Spencer G. .307.6 2.1 402.2 300.5
Mothercare . . . . . . . .148.7 -0.9 627.5 127.3
Next . . . . . . . . . . . . .2614.0 16.0 2810.0 1868.0
Sports Direct Int . . . .225.4 -2.7 266.2 127.0
WH Smith. . . . . . . . . .499.3 -4.2 558.0 433.8
Smith & Nephew. . . .555.0 -3.0 742.0 521.0
Synergy HeaIth . . . . .868.0 2.0 981.0 800.5
Barratt DeveIopme . . .94.0 1.2 119.0 67.5
BeIIway. . . . . . . . . . . .693.5 -6.0 753.5 514.0
BaIfour Beatty . . . . . .221.0 2.1 357.3 214.6
GaIIiford Try. . . . . . . .472.0 2.7 530.0 276.5
Kier Group. . . . . . . .1287.0 7.0 1448.0 1097.0
Drax Group . . . . . . . .551.5 0.0 581.5 353.6
SSE. . . . . . . . . . . . . .1254.0 8.0 1423.0 1111.0
Domino Printing S . .494.7 -0.1 705.0 434.3
HaIma . . . . . . . . . . . . .317.4 5.1 429.6 306.3
Laird . . . . . . . . . . . . . .131.8 3.3 207.0 127.5
Morgan CrucibIe C . .238.5 0.9 357.1 224.0
Oxford Instrument . .915.0 -12.0 1010.0 581.0
Renishaw. . . . . . . . . .800.0 -20.0 1886.0 800.0
Spectris . . . . . . . . . .1134.0 -11.0 1679.0 1039.0
Aberforth SmaIIer . . .507.0 -0.5 714.0 503.0
AIIiance Trust . . . . . .326.0 1.4 392.7 310.2
Bankers Inv Trust . . .358.2 3.0 428.0 346.5
BH GIobaI Ltd. GB .1203.0 8.0 1210.0 1058.0
BH GIobaI Ltd. US. . . .11.8 -0.1 12.2 10.4
BH Macro Ltd. EUR. . .20.0 -0.1 20.3 15.8
BH Macro Ltd. GBP 2061.0 -9.0 2075.0 1630.0
BH Macro Ltd. USD. . .19.9 0.0 20.1 15.8
BIackRock WorId M .586.5 -4.5 815.5 574.5
BIueCrest AIIBIue . . .165.3 -0.2 176.2 162.4
British Assets Tr . . . .112.9 0.4 140.5 109.0
British Empire Se . . .425.6 -0.5 533.0 409.9
CaIedonia Investm .1398.0 -1.0 1928.0 1385.5
City of London In . . .265.5 1.6 306.9 257.0
Dexion AbsoIute L . .133.2 0.1 151.0 130.0
Edinburgh Dragon . .206.0 -1.5 262.1 201.4
Edinburgh Inv Tru. . .448.4 5.3 492.2 414.9
EIectra Private E . . .1417.0 16.0 1755.0 1287.0
F&C Inv Trust . . . . . .274.8 1.7 327.9 261.5
FideIity China Sp. . . . .75.5 0.0 123.0 70.0
FideIity European . . .935.0 5.5 1287.0 911.3
HeraId Inv Trust. . . . .430.2 -4.8 545.5 419.0
HICL Infrastructu. . . .116.2 0.0 121.3 112.7
Impax Environment . .93.3 -1.2 130.5 88.5
JPMorgan American.780.5 -5.0 916.0 721.5
JPMorgan Asian In . .179.5 1.5 250.8 170.1
JPMorgan Emerging.485.9 1.4 639.0 480.1
JPMorgan European.643.0 -1.5 983.5 636.5
JPMorgan Indian I. . .327.5 0.5 492.0 322.5
JPMorgan Russian .486.0 5.0 755.0 415.1
Law Debenture Cor. .329.0 -2.0 385.0 315.0
MercantiIe Inv Tr . . . .832.0 7.0 1137.0 816.5
Merchants Trust . . . .343.0 1.5 431.8 339.5
Monks Inv Trust . . . .303.2 0.2 367.9 298.1
Murray Income Tru . .584.0 4.0 673.0 568.0
Murray Internatio . . .865.5 2.0 991.5 818.5
PerpetuaI Income . . .242.9 -0.8 276.0 234.8
PersonaI Assets T .33200.0 20.0 33975.030210.0
PoIar Cap TechnoI . .321.0 -1.5 391.2 299.5
RIT CapitaI Partn. . .1289.0 15.0 1360.0 1149.0
Scottish Inv Trus. . . .430.0 1.0 524.0 417.0
Scottish Mortgage . .579.5 6.0 781.0 567.0
SVG CapitaI . . . . . . . .182.1 -0.1 279.8 179.0
TempIe Bar Inv Tr . . .807.5 2.5 952.0 791.0
TempIeton Emergin .520.0 -1.5 689.5 497.0
TR Property Inv T . . .140.5 -4.5 206.1 140.5
TR Property Inv T . . . .67.6 -2.9 94.0 67.6
Witan Inv Trust . . . . .418.0 5.8 533.0 401.5
3i Group. . . . . . . . . . .180.2 2.2 340.0 176.8
3i Infrastructure. . . . .119.2 -0.2 125.2 113.1
Aberdeen Asset Ma .185.1 1.8 240.0 167.8
Ashmore Group . . . .310.7 -1.9 420.0 301.5
Brewin DoIphin Ho . .119.9 1.9 185.4 113.7
CameIIia. . . . . . . . . .9500.0 -20.010950.0 8800.0
CharIes TayIor Co. . .125.5 1.0 171.5 121.0
City of London Gr . . . .63.5 0.0 93.6 63.0
City of London In . . .334.9 -5.1 461.5 321.3
CIose Brothers Gr. . .613.0 2.5 888.5 601.5
CoIIins Stewart H . . . .50.6 1.6 90.8 49.0
EvoIution Group . . . . .74.5 -1.3 94.0 62.3
F&C Asset Managem .64.5 0.4 92.9 56.1
Hargreaves Lansdo .426.0 -1.0 646.5 402.5
HeIphire Group . . . . . . .1.4 -0.3 17.5 1.3
Henderson Group. . .102.0 -0.6 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .327.8 5.1 570.5 311.6
IG Group HoIdings . .427.9 3.8 528.0 393.6
Intermediate Capi . . .224.8 3.0 360.3 197.9
InternationaI Per . . . .170.1 -7.9 388.8 167.3
InternationaI Pub. . . .118.0 -0.5 119.5 108.6
Investec . . . . . . . . . . .330.2 -2.6 538.0 318.4
IP Group. . . . . . . . . . . .70.0 0.5 76.5 29.9
Jupiter Fund Mana . .201.5 -3.5 337.3 184.9
Liontrust Asset M . . . .75.9 -0.1 91.8 57.9
LMS CapitaI . . . . . . . . .57.0 0.8 64.8 44.8
London Finance & . . .22.0 0.0 23.5 16.5
London Stock Exch .807.0 7.0 1076.0 758.5
Lonrho . . . . . . . . . . . . .10.5 -0.8 19.8 10.5
Man Group. . . . . . . . .125.2 -0.6 311.0 121.7
Paragon Group Of . .178.2 6.0 206.1 134.6
Provident Financi . . .976.5 -5.0 1124.0 802.0
Rathbone Brothers.1036.0 -3.0 1257.0 977.0
Record . . . . . . . . . . . . .14.8 0.5 41.0 13.5
RSM Tenon Group . . .17.0 1.0 66.3 16.0
Schroders . . . . . . . .1205.0 -6.0 1922.0 1172.0
Schroders (Non-Vo.1033.0 7.0 1554.0 970.0
TuIIett Prebon . . . . . .286.7 -2.3 428.6 282.6
WaIker Crips Grou . . .44.5 0.0 51.5 40.0
BT Group . . . . . . . . . .177.2 0.7 204.1 161.0
CabIe & WireIess . . . .35.2 -0.0 52.9 31.3
CabIe & WireIess . . . .14.9 -0.0 76.9 14.1
COLT Group SA . . . . .84.1 -0.9 156.2 82.0
KCOM Group. . . . . . . .71.6 0.4 84.0 51.0
TaIkTaIk TeIecom . . .129.0 0.9 168.3 119.8
TeIecomPIus. . . . . . .741.5 -1.5 751.5 408.0
Booker Group . . . . . . .75.1 1.6 80.0 54.5
Greggs . . . . . . . . . . . .486.6 -1.1 550.5 435.3
Morrison (Wm) Sup. .311.2 3.2 320.0 262.7
Ocado Group. . . . . . . .84.8 1.1 285.0 81.0
Sainsbury (J) . . . . . . .286.0 1.8 391.5 263.5
Tesco . . . . . . . . . . . . .384.2 1.8 439.0 356.3
Associated Britis . .1085.0 7.0 1182.0 940.0
Cranswick . . . . . . . . .702.0 3.0 883.5 588.5
Dairy Crest Group. . .326.1 2.2 424.9 317.2
Devro . . . . . . . . . . . . .250.6 1.3 296.9 223.5
Premier Foods. . . . . . . .4.7 0.2 35.1 3.3
Tate & LyIe. . . . . . . . .663.5 4.5 689.5 510.0
UniIever . . . . . . . . . .2015.0 38.0 2114.0 1777.0
Mondi . . . . . . . . . . . . .415.0 -5.8 664.0 407.2
Centrica . . . . . . . . . . .286.6 0.8 345.8 282.6
InternationaI Pow . . .315.4 0.1 448.6 279.4
NationaI Grid . . . . . . .631.5 11.5 649.5 530.0
Pennon Group. . . . . .686.0 12.5 737.5 584.5
Severn Trent . . . . . .1497.0 -26.0 1600.0 1368.0
United UtiIities . . . . .600.0 2.0 637.0 543.5
Cookson Group . . . . .452.9 13.6 724.5 395.8
DS Smith . . . . . . . . . .183.5 0.2 266.2 164.4
Rexam . . . . . . . . . . . .330.8 1.0 400.0 299.8
Price Chg High Low
BerkeIey Group Ho.1222.0 13.0 1299.0 807.5
Bovis Homes Group.443.0 1.0 485.5 326.5
Persimmon . . . . . . . .463.5 1.8 518.5 338.6
Reckitt Benckiser . .3149.0 2.0 3648.0 3015.0
Redrow. . . . . . . . . . . .106.9 3.4 139.0 101.3
TayIor Wimpey . . . . . . .36.1 0.6 43.3 23.8
Bodycote . . . . . . . . . .246.3 0.2 397.7 225.6
Charter Internati . . . .927.5 1.0 952.0 538.5
Fenner . . . . . . . . . . . .365.9 5.0 422.5 280.0
IMI . . . . . . . . . . . . . . . .717.0 -2.0 1119.0 636.5
MeIrose . . . . . . . . . . .322.2 2.1 365.4 268.0
Northgate. . . . . . . . . .221.2 1.1 346.7 202.0
Rotork . . . . . . . . . . .1650.0 3.0 1858.0 1501.0
Spirax-Sarco Engi. .1743.0 0.0 2063.0 1649.0
Weir Group . . . . . . .1795.0 18.0 2218.0 1375.0
Ferrexpo. . . . . . . . . . .257.4 1.5 499.0 238.7
TaIvivaara Mining . . .201.8 0.6 622.0 194.8
BBAAviation . . . . . . .164.7 -1.9 240.8 156.0
Stobart Group Ltd. . .112.0 -3.0 163.6 110.9
AdmiraI Group. . . . . .881.0 26.5 1754.0 800.5
AmIin . . . . . . . . . . . . .310.9 6.8 427.0 270.6
Huntsworth . . . . . . . . .36.3 -2.8 85.0 36.3
Informa. . . . . . . . . . . .334.4 4.2 461.1 313.9
ITE Group. . . . . . . . . .181.9 6.8 258.2 157.7
ITV. . . . . . . . . . . . . . . . .60.0 0.7 93.5 51.7
Johnston Press. . . . . . .4.6 -0.2 12.8 4.1
MecomGroup . . . . . .165.0 -2.0 310.0 134.5
Moneysupermarket. .102.0 0.3 120.4 75.7
Pearson . . . . . . . . . .1081.0 12.0 1207.0 926.0
PerformGroup . . . . .200.0 -2.0 234.5 150.0
Reed EIsevier . . . . . .498.0 1.4 590.5 461.3
Rightmove . . . . . . . .1205.0 0.0 1408.0 743.0
STV Group. . . . . . . . . .89.3 0.3 168.0 87.0
Tarsus Group . . . . . .132.5 0.0 165.0 114.0
Trinity Mirror . . . . . . . .45.5 -2.5 93.0 37.5
UBM . . . . . . . . . . . . . .457.9 1.0 725.0 416.0
UTV Media . . . . . . . . .109.0 0.9 150.0 101.0
WiImington Group . . .83.8 0.0 183.0 82.5
WPP . . . . . . . . . . . . . .616.5 0.0 846.5 578.0
YeII Group . . . . . . . . . . .4.5 0.0 14.8 3.4
African Barrick G . . .491.3 4.6 618.5 393.5
AIIied GoId Minin . . .166.5 1.6 281.3 34.4
AngIo American . . .2221.5 25.5 3437.0 2138.5
AngIo Pacific Gro . . .274.6 7.5 369.3 237.9
Antofagasta. . . . . . .1044.0 10.0 1634.0 900.5
Aquarius PIatinum . .150.0 -1.5 419.0 141.5
BeazIey. . . . . . . . . . . .126.2 1.1 139.2 109.6
CatIin Group Ltd. . . .380.0 10.5 421.4 331.5
Hiscox Ltd. . . . . . . . . .362.4 -3.6 424.7 340.5
Jardine LIoyd Tho. . .643.5 -4.0 764.5 573.5
Lancashire HoIdin . . .687.0 7.0 774.5 529.0
RSA Insurance Gro. .102.2 -0.5 143.5 101.2
Aviva. . . . . . . . . . . . . .280.4 1.3 477.9 273.8
LegaI & GeneraI G. . . .97.2 0.7 123.8 89.8
OId MutuaI . . . . . . . . .104.8 0.0 144.8 98.1
Phoenix Group HoI . .532.0 22.0 688.0 451.1
PrudentiaI . . . . . . . . .565.5 6.0 777.0 509.0
ResoIution Ltd. . . . . .232.7 0.1 316.1 211.3
St James's PIace. . . .303.5 -2.3 376.0 236.2
Standard Life. . . . . . .185.1 -0.1 244.7 172.0
4Imprint Group . . . . .218.0 0.0 295.0 200.0
Aegis Group . . . . . . .123.1 0.8 158.5 115.7
BIoomsbury PubIis. . .95.0 0.0 138.0 93.5
British Sky Broad . . .726.0 10.5 850.0 618.5
Centaur Media. . . . . . .38.8 0.0 73.0 34.6
Chime Communicati.182.8 -1.0 298.5 173.0
Creston . . . . . . . . . . . .74.3 -0.3 121.0 72.0
DaiIy MaiI and Ge . . .388.1 3.8 594.5 343.4
Euromoney Institu . .623.5 5.0 736.0 522.5
Future. . . . . . . . . . . . . . .9.0 0.3 30.0 8.4
Haynes PubIishing . .225.0 0.0 257.0 208.5
BHP BiIIiton. . . . . . .1759.5 3.0 2631.5 1667.0
Centamin Egypt Lt . . .86.5 1.1 186.3 80.8
Eurasian NaturaI . . .600.5 2.0 1125.0 522.0
FresniIIo. . . . . . . . . .1583.0 -22.0 2466.3 1296.0
GemDiamonds Ltd. .203.9 -0.2 306.0 179.8
GIencore Internat . . .373.8 -8.4 531.1 348.0
HochschiId Mining . .400.0 2.4 680.0 384.4
Kazakhmys . . . . . . . .805.0 -2.5 1671.0 730.0
Kenmare Resources. .31.9 -1.4 59.9 24.4
Lonmin. . . . . . . . . . . .971.0 3.5 1983.0 941.5
New WorId Resourc .411.8 -8.1 1060.0 410.5
PetropavIovsk . . . . . .665.0 15.5 1165.0 543.5
RandgoId Resource 6775.0 -15.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3032.0 1.5 4712.0 2712.5
Vedanta Resources .928.0 -27.0 2559.0 895.8
Xstrata . . . . . . . . . . . .908.7 8.7 1550.0 764.0
Inmarsat . . . . . . . . . . .403.3 14.0 719.5 383.8
Vodafone Group . . . .166.4 0.4 182.8 155.1
Genesis Emerging . .424.0 -3.0 568.0 420.5
Afren. . . . . . . . . . . . . . .76.7 2.4 171.2 73.1
BG Group. . . . . . . . .1245.0 -2.0 1564.5 1144.0
BP. . . . . . . . . . . . . . . .425.4 4.9 509.0 363.2
Cairn Energy . . . . . . .264.2 -3.5 469.7 259.8
EnQuest . . . . . . . . . . . .85.7 -1.9 158.5 84.3
Essar Energy . . . . . .214.0 0.7 589.5 207.6
ExiIIon Energy. . . . . .252.5 -5.9 469.7 184.2
Heritage OiI . . . . . . . .160.0 -0.4 486.0 158.3
Ophir Energy. . . . . . .240.0 0.0 299.0 184.5
Premier OiI. . . . . . . . .357.3 5.4 535.0 310.0
RoyaI Dutch SheII . .2101.0 31.0 2326.5 1883.5
RoyaI Dutch SheII . .2171.0 32.5 2336.0 1890.5
SaIamander Energy .197.0 0.3 317.6 182.3
Soco Internationa . . .278.0 -6.5 400.0 273.6
TuIIow OiI . . . . . . . . .1252.0 16.0 1493.0 945.5
Amec . . . . . . . . . . . . .844.0 6.0 1251.0 740.5
Hunting . . . . . . . . . . .626.0 6.0 817.0 530.0
Kentz Corporation . .462.1 -11.7 508.0 275.5
LampreII . . . . . . . . . . .248.6 3.7 395.2 220.7
Petrofac Ltd. . . . . . .1299.0 11.0 1685.0 1108.0
Wood Group (John) .591.0 -4.5 715.8 469.9
Burberry Group. . . .1162.0 0.0 1600.0 996.0
PZ Cussons. . . . . . . .336.0 4.0 409.0 320.5
Supergroup . . . . . . . .444.5 -30.5 1820.0 435.2
AstraZeneca . . . . . .2755.0 23.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .279.3 6.1 309.7 210.1
Genus. . . . . . . . . . . .1010.0 30.0 1111.0 824.0
GIaxoSmithKIine. . .1343.5 14.5 1405.5 1127.5
Hikma Pharmaceuti .601.0 5.0 900.0 555.5
Shire PIc. . . . . . . . . .1989.0 27.0 2136.0 1481.0
CapitaI & Countie . . .169.7 1.2 203.7 142.8
Daejan HoIdings . . .2507.0 57.0 2954.0 2282.0
F&C CommerciaI Pr .100.9 0.6 108.0 88.0
Grainger . . . . . . . . . . . .94.3 1.4 133.2 77.3
London & Stamford .114.0 -0.9 140.0 111.6
SaviIIs. . . . . . . . . . . . .284.9 9.9 427.1 256.2
UK CommerciaI Pro . .70.3 -0.9 85.5 70.3
Unite Group. . . . . . . .157.0 2.9 224.1 150.4
Big YeIIow Group . . .240.0 -1.6 352.2 218.0
British Land Co. . . . .454.2 1.5 629.5 443.7
CapitaI Shopping . . .288.9 -1.0 424.8 283.2
Derwent London . . .1501.0 -6.0 1880.0 1400.0
Great PortIand Es . . .324.1 -1.9 445.0 317.4
Hammerson. . . . . . . .353.8 1.8 490.9 344.4
Hansteen HoIdings. . .69.6 -0.6 89.5 68.2
Land Securities G. . .635.5 3.0 885.0 616.0
SEGRO. . . . . . . . . . . .206.9 2.1 331.3 198.7
Shaftesbury. . . . . . . .464.6 -2.0 539.0 431.7
Aveva Group . . . . . .1436.0 8.0 1799.0 1298.0
Computacenter . . . . .335.4 -2.1 490.0 321.8
Fidessa Group. . . . .1571.0 -34.0 2109.0 1409.0
Invensys. . . . . . . . . . .182.3 -0.4 364.3 177.8
Logica . . . . . . . . . . . . .70.6 0.4 147.2 67.6
Micro Focus Inter . . .357.9 0.9 426.2 239.4
Misys . . . . . . . . . . . . .240.9 -8.9 420.2 214.9
Sage Group . . . . . . . .266.5 1.2 302.0 231.7
SDL. . . . . . . . . . . . . . .641.5 -2.0 711.5 571.0
TeIecity Group. . . . . .581.5 3.5 620.5 430.0
Aggreko . . . . . . . . . .1738.0 27.0 2034.0 1394.5
Ashtead Group . . . . .160.3 1.4 207.9 99.4
Atkins (WS) . . . . . . . .591.5 6.0 820.0 490.2
Babcock Internati . . .676.0 2.5 733.0 520.0
Berendsen . . . . . . . . .422.0 3.0 568.0 391.3
BunzI . . . . . . . . . . . . .796.5 10.0 820.5 676.5
Cape . . . . . . . . . . . . . .299.1 4.1 591.5 282.2
Capita Group. . . . . . .617.5 0.5 786.5 612.0
CariIIion . . . . . . . . . . .285.2 -0.4 403.2 280.6
De La Rue . . . . . . . . .936.0 49.0 949.3 549.5
DipIoma . . . . . . . . . . .306.0 2.4 414.3 263.3
EIectrocomponents .197.9 1.4 294.9 182.2
Experian. . . . . . . . . . .777.5 1.5 833.5 665.0
FiItrona PLC . . . . . . . .375.5 5.5 397.1 229.7
G4S. . . . . . . . . . . . . . .232.0 0.5 291.0 219.9
Hays . . . . . . . . . . . . . . .66.9 -1.7 133.6 65.9
Homeserve . . . . . . . .234.7 -2.0 532.0 218.5
Howden Joinery Gr. .100.5 0.8 127.5 92.0
Interserve. . . . . . . . . .299.8 5.6 341.3 190.8
Intertek Group. . . . .1850.0 11.0 2148.0 1715.0
MichaeI Page Inte . . .356.9 0.4 567.0 338.7
Mitie Group . . . . . . . .244.3 -1.7 257.5 195.9
Premier FarneII . . . . .167.0 6.3 308.8 144.5
Regus. . . . . . . . . . . . . .81.0 2.4 119.0 64.0
RentokiI InitiaI . . . . . . .61.4 0.4 104.9 60.0
RPS Group. . . . . . . . .179.6 0.5 253.0 156.6
Serco Group . . . . . . .468.5 0.7 618.5 467.4
Shanks Group. . . . . .103.5 -0.3 130.9 100.7
SIG . . . . . . . . . . . . . . . .77.7 -1.0 153.5 75.7
SThree . . . . . . . . . . . .219.5 -1.0 447.6 213.2
Travis Perkins . . . . . .757.0 1.0 1127.0 715.0
WoIseIey . . . . . . . . .1743.0 11.0 2261.0 1404.0
ARM HoIdings . . . . . .553.0 -7.0 651.0 389.6
CSR . . . . . . . . . . . . . .160.0 2.0 447.0 154.1
Imagination Techn . .412.7 1.5 502.0 296.9
Pace . . . . . . . . . . . . . . .44.7 -1.6 231.8 44.0
Spirent Communica .119.4 1.4 160.3 109.5
British American . .2825.0 16.5 2949.5 2282.5
ImperiaI Tobacco . .2254.0 27.0 2354.0 1784.0
Betfair Group. . . . . . .741.0 -8.5 1471.0 567.0
Bwin.party Digita . . .134.5 2.0 257.6 100.6
CarnivaI . . . . . . . . . .2003.0 19.0 3153.0 1742.0
Compass Group . . . .551.0 5.5 612.0 512.5
Domino's Pizza UK. .395.8 2.7 586.0 377.0
easyJet. . . . . . . . . . . .361.4 9.3 474.0 301.0
FirstGroup . . . . . . . . .309.9 0.1 412.6 301.8
Go-Ahead Group. . .1219.0 -1.0 1598.0 1198.7
Greene King . . . . . . .441.5 -0.1 518.0 410.0
InterContinentaI . . .1005.0 0.0 1435.0 955.0
InternationaI Con . . .140.8 1.1 305.0 132.0
JD Wetherspoon. . . .400.2 0.2 468.3 380.5
Ladbrokes . . . . . . . . .126.6 1.4 155.3 114.0
Marston's. . . . . . . . . . .89.8 1.7 117.1 84.6
MiIIennium& Copt . .385.8 1.7 600.5 371.2
MitcheIIs & ButIe. . . .217.0 1.4 361.0 212.9
NationaI Express . . .203.2 1.6 270.2 198.9
Rank Group . . . . . . . .140.0 0.0 153.7 109.5
Restaurant Group. . .285.0 -2.5 335.0 254.9
Stagecoach Group . .240.5 -0.3 272.4 200.0
Thomas Cook Group .18.0 1.7 204.8 10.2
TUI TraveI. . . . . . . . . .154.6 5.7 271.9 136.7
Whitbread . . . . . . . .1528.0 20.0 1887.0 1409.0
WiIIiamHiII. . . . . . . . .193.0 2.2 244.1 155.5
Abcam . . . . . . . . . . . .334.3 -6.8 460.0 307.0
AIbemarIe & Bond . .312.5 -4.5 400.1 272.0
Amerisur Resource . .15.8 0.0 29.0 9.5
Andor TechnoIogy . .578.0 -4.0 685.0 371.0
ArchipeIago Resou. . .60.0 0.0 79.0 46.5
ASOS . . . . . . . . . . . .1270.0 -5.0 2468.0 1230.0
AureIian OiI & Ga . . . .19.5 1.3 92.0 16.0
Avanti Communicat .268.5 2.3 735.0 248.5
Avocet Mining . . . . . .209.8 -0.3 286.8 177.5
BIinkx . . . . . . . . . . . . . .64.8 -1.5 158.0 62.8
Borders & Souther . . .59.3 -0.3 72.3 43.5
BowLeven . . . . . . . . . .65.3 -1.8 398.0 60.3
Brooks MacdonaId .1164.0 -29.0 1372.5 940.0
Cove Energy . . . . . . . .79.3 1.0 112.8 61.0
Daisy Group . . . . . . .103.5 3.0 127.0 88.0
EMIS Group . . . . . . . .500.0 5.0 580.0 406.0
Encore OiI . . . . . . . . . .74.8 1.5 151.5 40.8
Faroe PetroIeum. . . .142.0 0.5 218.3 130.0
GuIfsands PetroIe. . .190.8 5.8 401.5 142.5
GWPharmaceuticaI . .96.5 1.5 130.0 87.0
H&T Group. . . . . . . . .304.0 -1.0 395.0 277.0
Hamworthy . . . . . . . .831.0 4.0 839.0 373.8
Hargreaves Servic .1101.0 16.0 1180.0 693.0
HeaIthcare Locums . . . .2.7 -0.2 3.2 2.7
Immunodiagnostic . .786.0 57.5 1218.0 715.0
ImpeIIamGroup . . . .263.0 -5.5 387.5 180.5
James HaIstead. . . . .452.5 2.5 495.0 360.0
KaIahari MineraIs . . .224.3 -0.8 301.0 198.3
London Mining . . . . .293.8 7.3 436.5 278.5
Lupus CapitaI . . . . . .100.3 0.0 150.0 86.0
M. P. Evans Group . .396.0 -1.0 500.5 371.0
Majestic Wine . . . . . .365.8 10.8 510.0 353.0
May Gurney Integr . .282.8 7.8 302.0 213.0
Monitise . . . . . . . . . . . .31.0 -0.8 40.0 18.5
MuIberry Group. . . .1370.0 -30.0 1920.0 605.0
Nanoco Group. . . . . . .50.0 0.0 110.0 38.0
NauticaI PetroIeu . . .263.5 -3.5 547.0 223.5
NichoIs. . . . . . . . . . . .536.0 -1.0 579.0 410.0
Numis Corporation. . .90.0 -0.5 137.8 88.2
Pan African Resou . . .14.0 -0.5 15.8 9.5
Patagonia GoId . . . . . .49.5 -0.5 70.0 37.3
Prezzo . . . . . . . . . . . . .56.3 1.3 71.5 53.3
Pursuit Dynamics . . .195.5 13.3 700.0 160.5
Rockhopper ExpIor .232.8 0.5 386.0 141.0
RWS HoIdings. . . . . .431.5 -2.5 479.8 266.5
Songbird Estates . . .108.0 0.8 160.3 107.3
VaIiant PetroIeum . . .400.3 0.3 672.0 400.0
Young & Co's Brew. .642.5 -8.5 712.0 565.0
ThomasCookGroup .18.0 10.2
DeLaRue .........936.0 5.5
PhoenixGroupHoId.532.0 4.3
RoyaIBankofScot ...18.7 4.3
PremierFoods........4.7 4.2
PremierFarneII .....167.0 3.9
ITEGroup .........181.9 3.9
TUITraveI..........154.6 3.8
SaviIIs ............284.9 3.6
Inmarsat...........403.3 3.6
Supergroup ........444.5 -6.4
JDSportsFashion ..713.0 -5.6
ChemringGroup ....389.8 -5.3
InternationaIPers ...170.1 -4.4
KenmareResources..31.9 -4.2
TRPropertyInvTr....67.6 -4.1
KesaEIectricaIs .....81.7 -3.8
Misys .............240.9 -3.6
Pace ...............44.7 -3.5
TRPropertyInvTr...140.5 -3.1
Risers FaIIers
MAINCHANGESUK350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENTINSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUGRETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS,WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT& S.
HHOLD GDS & HOME CONSTR.
INDUSTRIALENGINEERING
INDUSTRIALTRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST.& SERV.
SOFTWARE & COMPUTER SERV.
SUPPORTSERVICES
TECHNOLOGY HARDW.& EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM50
NON LIFE INSURANCE
REAL ESTATE INVEST.TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT& SERVICES
MINING
NONEQUITY INVESTM.COMM.
Tsy 3.250 11. . . . . .99.96 -0.12 102.8 100.0
Tsy 5.250 12 . . . .102.52 -0.03 106.9 102.5
Tsy 9.000 12 . . . .105.88 0.00 113.5 105.8
Tsy 5.000 12 . . . .101.25 -0.05 105.5 101.1
Tsy 4.500 13 . . . .105.13 -0.01 108.1 105.0
Tsy 2.500 13 . . . .284.03 0.00 287.7 277.6
Tsy 8.000 13. . . . .113.69 -0.01 119.5 113.7
Tsy 5.000 14. . . . .112.10 -0.04 112.9 109.2
Tsy 7.750 15 . . . .100.75 -0.44 108.0 100.4
Tsy 4.750 15. . . . .114.55 -0.10 114.8 108.6
Tsy 8.000 15 . . . .128.05 -0.11 129.2 123.7
Tsy 2.500 16 . . . .339.61 -0.13 342.7 310.2
Tsy 4.000 16. . . . .113.31 -0.23 113.8 104.9
Tsy 1.250 17. . . . .114.39 -0.31 115.4 106.7
Tsy 8.750 17 . . . .139.82 -0.72 141.9 132.9
Tsy 12.000 17 . . .123.16 0.00 132.0 122.3
Tsy 5.000 18 . . . .120.52 -0.50 121.5 109.7
Tsy 4.500 19. . . . .118.21 -0.60 119.6 105.4
Tsy 3.750 19. . . . .112.96 -0.65 114.3 99.4
Tsy 2.500 20 . . . .357.55 -0.44 359.7 312.4
Tsy 4.750 20 . . . .120.71 -0.74 122.2 106.6
Tsy 8.000 21 . . . .149.15 -0.86 152.0 133.8
Tsy 1.875 22 . . . .124.46 -0.70 127.4 111.3
Tsy 4.000 22. . . . .115.13 -1.07 116.7 99.0
Tsy 2.500 24 . . . .321.76 -0.53 323.6 273.5
Tsy 5.000 25 . . . .127.05 -1.09 128.7 107.4
Tsy 1.250 27 . . . .121.96 -0.55 122.6 104.6
Tsy 4.250 27. . . . .119.43 -1.10 122.2 97.9
Tsy 6.000 28 . . . .144.14 -1.09 145.8 119.5
Tsy 4.125 30. . . . .311.04 -0.48 312.2 261.2
Tsy 4.750 30 . . . .126.89 -1.09 128.3 103.0
Tsy 4.250 32. . . . .119.48 -1.14 120.9 96.0
Tsy 4.250 36 . . . .120.35 -1.27 121.9 95.0
Tsy 4.750 38 . . . .130.18 -1.32 131.9 102.8
Tsy 4.500 42 . . . .126.91 -1.38 128.6 98.9
% %
Play FTSE under
the table
Register for free and see
why Lovestruck is YMJ dating
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e t h t
S T ay F l P
e l b a tta
d n E u S r e
27
Wealth Management
on higher earners seeking to save for
their pensions. There is some talk that
the rules on the tax-treatment of non-
domiciles could be modified again and
that we could see the introduction of a
statutory residence test. As a result of
the fact that growth forecasts are
expected to be lowered, he cant use any
bazookas to do anything radical like cut
VAT, says Angus Campbell, head of
sales for Capital Spreads. He needs as
much tax as possible coming in to have
any chance of making his deficit reduc-
tion targets and so we might see some
retail stocks come under pressure.
BUNG FOR BUILDERS
Osborne will use the statement to con-
firm that he will underwrite the mort-
gages of sub-prime first time buyers of
new built homes.
Last week, David Cameron unveiled his
support of the scheme which would
also use 400m of taxpayer funds to aid
housing developers. The announce-
ment will be welcome news for housing
developers and for anybody with fond
memories of the last time that a govern-
ment manipulated the mortgage mar-
ket. But according to Manoj Ladwa,
senior trader at ETX Capital, although
the news could give the sector a small
blip, any boost has already been fac-
tored in.
Tomorrows speech will not be a
game changer for the markets, but
traders should look to any short term
moves in UK gilts especially in the
case of any surprises.
Osborne to
find cash for
UK builders
T
OMORROW, George Osborne will
deliver his Autumn Statement, sup-
posedly focusing on economic
growth. There will also be fresh
data on government finances from the
Office of Budget Responsibility. The state-
ment is likely to contain a mixture of bad
news for taxpayers as well as government
subsidy for pet ideas. It is unlikely to con-
tain anything unexpected, but some sec-
tors particularly UK housebuilders
may show a short-term rally on the confir-
mation of their expected government
handouts.
After entering Number 11, George
Osborne announced that his deficit
reduction plans would set the UK on
course to eliminate its structural deficit
by 2014-2015. Many expect that he will
announce tomorrow that he is set to fall
short on that objective (though because
he is focusing on the structural, rather
than cyclical deficit, he may yet be able to
fudge the numbers). Though this
announcement would be no surprise,
with bond markets so skittish, Angus
Campbell, head of sales for Capital
Spreads says that we should be looking to
the reaction of UK gilts. Will this lead to
a sell off of our bonds and cause our
yields to spike the way that France, Italy
and Spains have? This is probably the real
area that traders will be focusing on
tomorrow.
TAXING TIMES
Even though the government has
already squeezed dry the stagnat-
ing economy, the Treasury may
attempt to bludgeon the country with
further tax rises, perhaps on banks or
Tomorrows autumn
address could bring
gifts for a chosen few,
writes Craig Drake
George will attempt to
create something out
of nothing
Pictures:REX
THE TIPSTER
TRYING TO
SPOT GOLD
SHINING
M
ARKETS rarely go up or
down in a straight line and
why should the FTSE be an
exception? Ten straight
days of negative closes has left the
FTSE 100 looking pretty oversold.
Although sovereign debt concerns
still hang over the market like a dark
shadow, equities could experience a
sharp pull back in coming days. Given
the recent sell-off, investors could
begin to pile back in for the Santa
Rally. ETX Capital quotes 5,112-5,114
for the UK 100 rolling daily contract.
Retailers will be in the spotlight
this week following on from the US
Thanksgiving mad shopping bonan-
za, and to see if any of the frenzy
will rub off on UK consumers. Next,
a bellwether for the high street, has
seen its share price rally almost 30
per cent in 2011. So can there be
more upside for the retailer? Capital
Spreads quotes 2,586.6p-2,591.4p
for the shares.
Thomas Cooks share chart has
resembled an alpine ski slope this
year, sliding 95 per cent to lows of
9.09p last week, with one final steep
lunge from 40p to 10p on Tuesday.
But those brave traders who like to
take the Black Runs and started buy-
ing at 9, 10 and 11p saw their invest-
ments gain over 100 per cent by
Friday, as Thomas Cook took off to
climb towards 20p. They didnt just
book a nice profit, they Thomas
Cooked it. Spread Co offer a spread
on Thomas Cook of 17.58p-17.60p.
Kingfisher is the largest home
improvement retailer in Europe and
the third-largest in the world. When
it releases its third quarter trading
update on Thursday, investors will be
looking to see how the group has
held up over a difficult quarter. With
860 stores in eight countries and
brands including B&Q, Castorama,
Brico Depot and Screwfix, the com-
pany has done well this year, despite
adverse conditions that have held
back its competitors. Investors will
also be fishing in the trading update
for clues as to how the company will
perform over the crucial Christmas
period. IG Index quotes 246.9p-247p
for Kingfisher.
Craig Drake
THE WEEK AHEAD in association with
COMPANY NEWS
l London headquartered conference organiser
ITE Group will announce its preliminary earn-
ings for 2011 tomorrow.
l Britvic will announce its preliminary earnings
results on Wednesday. The Chelmsford-based
soft drinks manufacturer will be hoping that its
earnings have a bit of fizz.
l Marstons Brewery is also set to announce its
full-year results on Wednesday. Marstons owns
more than 2,000 pubs in the UK and is the
worlds largest brewer of cask ale. Good results
will mean doubles all round.
Register now at:
capitalspreads. com/seminar
Spread betting and CFD trading carry
a high level of risk.
Capital Spreads is a trading name of London Capital
Group, which is authorised and regulated by the
Financial Services Authority.
Capital thinking #17
Learn from your mistakes.
If a lesson was expensive
dont pay for it again.

Trading Strategies with Malcolm Pryor
Wednesday 30th November, 17:00 20:00
Capital Spreads seminars and webinars
An introduction to spread betting and
current market trends: will the Christmas
rally occur this year?
Monday 12th December, 17:30 18:30
POLITICAL NEWS
l Fast moving climate secretary Chris Huhne
plans to begin developing a global treaty at this
weeks UN climate summit. With a goal of final-
ising the treaty, hell have to put his foot down if
hes to speed up progress to reach emissions tar-
gets by 2020. Luckily, thanks to carbon trading,
these points are exchangeable.
l At a one-day summit in Washington DC,
President Barack Obama will offer his expert
advice on proactive debt reduction to European
Council President Herman Van Rompuy and
President of the European Commission Jose
Manuel Barroso.
ECONOMICS
l The European Monetary Union will announce
its M3 money supply today. This is the European
Central Banks most comprehensive measure of
money supply growth. The last released M3
year-on-year rate was 2.3 per cent.
l Tomorrow, George Osborne will address par-
liament to give his Autumn Statement. With
nothing left in the bank it is unlikely that the
Chancellor will have any gifts to offer taxpayers.
l Thursday will see the release of manufactur-
ing PMI figures. Last months figure fell from
50.8 to 47.4, the lowest reading in 28 months.
Wealth Management | Spread Betting
28 CITYA.M. 28 NOVEMBER 2011
Candlestick
charts are a
leading light
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Spread betting and CFD trading can result in losses that exceed your initial deposit.
Rice kernels harvested a key measure
to model price action, says Philip Salter
C
ANDLESTICK charting has stood
the test of time, with Japanese
rice merchant Munehisa
Homma (1724-1803) credited as
its founder. As a model of price move-
ments, candlesticks are an elegant
means of displaying complex informa-
tion. The candle or real body marks a
prices opening and closing positions
for a given time period, while the thin
wick or shadow marks the highest
and lowest prices reached in that time.
If the price closed lower than it
opened, the candle is red; it is green if
it closed higher (see graphic, below).
David Jones of IG Index says candle-
sticks let traders see very quickly who
won the battle on the day, the bulls or
the bears, based on the colour. They
are a more useful approach than look-
ing at the traditional high/low,
open/close format of bar charts, says
Jones, which were the default option
for many years. Line and bar charts
just dont cut it for short-term traders
they need more information when
it comes to deciding on which way to
trade and where to place stop losses.
BODY IMAGE
CMCs Michael Hewson thinks the size
of the real body the area between the
open and the close of the candle can
give us important clues of market sen-
timent. He explains that this is the
area where most of the trading activity
has occurred and is therefore some-
times known as the true value area.
Because of the distinction between an
uptrend (green) and downtrend (red),
the colour of the real-body can quick-
ly underline the directional changes in
any given market over any given time
frame. Hewson explains: The smaller
the real body the weaker the candle
typically this is when the market con-
solidates and uncertainty exists with
traders squaring positions and looking
for a potential reversal or corrections.
IN THE SHADOWS
Big shadows can tell traders a lot about
the extent of intra-period moves, says
Michael van Dulken of Accendo
Markets, and whether sentiment
changed markedly during the period.
Ian OSullivan of Spread Co says long
shadows at the bottom of the candle
show that during the day the bears
pushed prices lower, but the bulls
retook control and pushed the candle
back higher to close, (or even above the
opening price). He says this can often
be a very bullish sign if at a bottom of a
slide, signalling a bullish reversal.
Candles with long lower tails are
known as bullish hammers. On the
opposite side, it can be bearish if at the
top of a rally the prices push higher,
then are pushed lower leaving a long
upper shadow, says OSullivan, hence
the bearish hammer name given to
this kind of formation.
EGGS AND BASKETS
Candlestick charts sometimes give too
much information, says van Dulken,
getting too busy when moving aver-
ages and trendlines are added. This, he
says, can draw focus away from under-
lying trends, which may be more easi-
ly visible on a standard closing price
line chart. He also notes that traders
will often still need to look at an intra-
period chart to see if the low or high
was at start or end of the period.
Hewson is a champion of candle-
stick analysis, but says: Predicting
trend changes has always been a tricky
process and candlestick analysis is pri-
marily about identifying trend exhaus-
tion. Experts agree candles should be
used with other charting techniques.
Homma, the acknowledged founder
of candlestick charting, is regarded by
some as the most successful trader in
history, every year raking in pounds by
the billion. Both a lucrative and
enlightening discovery.
Chart the difference
between four candles
and fork handles
Picture: REX
ANALYSIS l Uptrend and downtrend candlesticks
Upper Shadow
Lower Shadow Lower Shadow
Upper Shadow
HIGH
CLOSE
OPEN
LOW
CLOSE
LOW
HIGH
OPEN
Real
Body
Real
Body
Wealth Management | Spread Betting
29 CITYA.M. 28 NOVEMBER 2011
A
COTTAGER and his wife had a hen that
laid a golden egg every day. They sup-
posed that the hen must contain a
great lump of gold in its inside, and in
order to get the gold they killed it.
The protesters in the City understand
Aesops fable as a warning against the greed of
bankers and arbitrageurs. The exploitation of
poor people, they suppose, yields a golden egg
to the wretched 1 per centers. Dont kill us
hens, they say.
Understood. And if their zero-sum theory
were true, the moral would be a good one. If
the 1 per centers got rich by appropriating
eggs from poor people, Id join the protest.
But its not the good moral, and I wont be
joining the barricades. The moral that fits the
modern case is the Citys best reply to the
occupiers: Dont kill the system that made
you so well off, at any rate by comparison with
your ancestors, or even now by comparison
with most of the worlds people. The truth is
that since about 1800, free and innovative
markets from London to Hong Kong have
delivered every day a Great Fact of golden
eggs, for the poorest among us. The source of
our income is not a great, fixed lump of gold,
to be shared out between the rich and poor.
Its the daily making of the golden egg that
matters.
The news from economic history is that
income per head in Britain during the
Napoleonic Wars was about 3.75 a day. The
news is utterly uncontroversial, agreed to by
all economic historians, left or right. Its a
plain fact, more settled even than many in
astronomy. The old average of 3.75 a day is,
figured in 2011 London prices, about the price
of a pint at Ye Olde Cheshire Cheese. To put it
in sad context, the average Briton in 1800 did-
nt do much better than the average North
Korean nowadays.
The British average since then has risen by
at least a factor of 16, or 1,500 per cent, to 59
a day, the poor experiencing a still larger real
increase. Further, the factor of 16 is a lower
bound on the Great Fact. Most goods and serv-
ices are superior to what they were in 1800
orange juice in winter and central heat away
from the fireplace. What is more, our antibi-
otics and public water supplies and correct
theories of medicine and of economics are all
incomparably better than what was on offer in
1800. Unlike items like orange juice and house
heat or yachts, note, they are spread equally
among the 1 and the 99 per cent. Total welfare
of the poor has therefore increased more than
the average. As the American economist John
Bates Clark predicted in 1901, The typical
labourer will increase his wages from one dol-
lar a day to two, from two to four and from
four to eight. Such gains will mean infinitely
more to him than any possible increase of cap-
ital can mean to the rich This very change
will bring with it a continual approach to
equality of genuine comfort. Unlike most
economic predictions, this one was spot on.
Why did it happen? Oddly, ideas, words, ide-
ologies, rhetorics. Economic historians such as
Joel Mokyr, Jack Goldstone, Eric Jones and
Margaret Jacob have concluded that merely
material explanations work poorly. We didnt
get rich by trading with India or stealing from
the poor or even by piling brick on brick, or BA
on BA. We got rich because, starting in
Holland in the seventeenth century, we gave
liberty and dignity to the bourgeoisie. We
accepted the Bourgeois Deal: You let me
engage in creative destruction in the econo-
my, as painters and musicians do in their
fields, and in the moderately long run Ill
make you rich.
The best scientific evidence that rhetoric
matters most is the recent experience of China
and India. After 1978 the Chinese stopped
shooting millionaires and started admiring
them, or at least letting them do their nasty
little millionaire things. Incomes commenced
doubling every seven or eight years. Then the
Indians, mortified by this development,
stopped in the late 1970s making movies
attacking businesspeople and admiring
bureaucrats. When Bollywoods insight started
to be made into law, after 1991, Indian income
started growing at comparable rates.
Sneering at the bourgeoisie and admiring
the aristocracy in Shakespearean England
yielded trivial growth. Maoism and Great
Leaps Forward, or Gandhi combined with LSE
socialism, yielded the same. When in the eigh-
teenth century the British became a polite and
commercial people, the modern world began.
Watch it. Theres no lump of gold inside the
goose. Talking about the lump leads to unhap-
py economic policy, such as Indias stifling
Licence Raj or Maos disastrous backyard blast
furnaces. Rhetoric matters, all the way down.
Deirdre McCloskey teaches economics, history,
English and communications at the University of
Illinois at Chicago and economic history at
Gothenburg University. Her latest book is Bourgeois
Dignity: Why Economics Cant Explain the Modern
World (University of Chicago Press, 2010).
30
The Forum
CITYA.M. 28 NOVEMBER 2011
We got rich because we
started giving liberty and
dignity to the bourgeoisie
Anti-capitalist slogans have
real costs: Dont put down a
goose that lays golden eggs
cityam.com/forum
DEIRDRE McCLOSKEY
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
31
Giving long-term
incentives the
chop wont make
the system better
Back to basics is
not the way to
resolve high pay
E
XECUTIVE Pay is out of control official.
Thats the message from last weeks High
Pay Commission report, which claims
that excessive top pay is deeply damag-
ing to the UK as a whole, and action is urgent-
ly required to address it. However, on the
subject of long-term incentives, in particular, it
is just plain wrong. The report says that pay
programmes are far too complicated and rec-
ommends going back to basics. The argu-
ment runs that complicated pay programmes
are far too difficult for us to understand and so
everyone should get a salary plus a discre-
tionary award if performance is good enough.
Apparently we dont need long-term incen-
tives anymore because escalating high pay for
senior executives is often concealed from
shareholders and the public within complex
remuneration arrangements, buried in the
small print of companies annual reports.
Before everyone decides these supposedly
complex programmes get the chop, just con-
sider this: if you invested 100 in Rolls Royce in
2001, it would be worth four times that 10
years later. Sir John Rose, as chief executive,
was paid 27m for those 10 years. Of the 2.7m
annual average take-home pay, salary made up
26 per cent, annual bonus 20 per cent and long
term incentives 54 per cent. Who would
begrudge a chief executive the rewards of that
kind of success, and isnt it right that long-
term pay drives a man like Rose? Rolls Royce is
an example of what the UK is capable of, and
focusing on the long-term is a key reason why
shareholders derived that kind of value.
If the High Pay Commission had conducted
the same analysis for the FTSE 100 over, say, the
last five years (chief executives total five-year
pay compared with the companys value per-
formance 2007 to 2011) they would have found
something very interesting. Total annual
bonuses paid to chief executives of companies
with total shareholder returns greater than 5
per cent annually (the winners) are only 25
per cent more than those paid to chief execu-
tives managing companies with returns less
than 5 per cent annually (underperformers).
By contrast, long-term incentive pay for win-
ners was more than five times (500 per cent)
that awarded to underperformers.
Long-term incentives are an effective link
between pay and performance, whereas large
bonuses tied to annual operating targets may
serve to obscure rather than clarify that link.
The chief executive of BP received over 8m
in bonuses over the last five years despite
achieving shareholder returns of less than 5
per cent annually. Of the 55 FTSE companies
that did better, only five received bigger bonus-
es, but 35 received greater long-term payouts.
To put the UKs concerns into context, US
chief executives are paid roughly double that
of UK chief executives. In an attempt to address
the issue, they opted to introduce a British
style say-on-pay vote for shareholders. The UK
is significantly ahead of the US in terms of dis-
closure and shareholder communications.
While other countries admire our approach,
there is a real danger we will shoot ourselves in
the foot over long-term incentives. If the pub-
lic, the government and shareholders come to
the view that all pay is unrelated to perform-
ance, it will be a dangerous misjudgement.
Simon Patterson is a partner with Patterson
Associates LLP, the independent remuneration consult-
ing firm.
From bad to wurst
In Fridays City A.M., Allister Heath
quoted economic research con-
cluding that if a restaurant bill is
split equally among diners it is on
average 36 per cent more expen-
sive than if people paid individually
only for what they ordered, point-
ing out by extension the obvious
moral hazard of Eurozone pooled
debts, where financially disciplined
countries pay for the most profli-
gate. This would not be true if the
diners were limited to a fixed price
menu and one glass of wine per
head. Strict measures need to be
taken to ensure that extra glasses
of brandy are not slipped onto the
communal bill. But the person who
is in control of the budget may lose
a few friends and some diners may
choose to eat elsewhere in the
future. Maybe sausage and sauer-
kraut should be made compulsory
in all restaurants across the
Eurozone. Then there could be no
arguments over the bill, just
whether to dine in the Eurozone.
Christopher Clayton
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
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by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
SIMON PATTERSON
CITYA.M. 28 NOVEMBER 2011
The Forum
T
HE publication of
the High Pay
Co mmi s s i o n s
report last week
prompted much com-
ment when it found that
remuneration for head-
ing one UK bank has
increased dramatically
more than average wages over 30 years.
Coming on the back of last months Income Data
Services report, which drew attention to the
increase of total earnings for directors of FTSE 100
companies, it is easy to understand why the general
public let alone the St Pauls protest camp feels
angered by the perceived disconnect and pay dif-
ferentials between boardrooms and other workers.
But to make a fair assessment of current pay
structures you have to look beyond the headlines.
If rewards are properly aligned with perform-
ance and do not jeopardise long-term stability
through excessive risk-taking, there is absolutely
nothing wrong with high payouts. And in a global
marketplace, UK-based firms need to pay a com-
petitive rate in order to retain highly mobile staff
or, equally crucially, attract new, talented individu-
als. The test of competitiveness isnt staff who
leave, it is staff who dont want to join.
Where the business world differs, for example,
from football is that the general public finds it diffi-
cult to gauge the difference in talent and perform-
ance between one executive and another.
Enormous value can be added by key individuals
but it is far less immediately obvious due to the
many variables in play. Improving understanding in
this area is much needed.
Remuneration has, in fact, been debated in City
circles for some time. Progress has been made in
improving overarching structures, with firms
adapting practices in areas such as guaranteed
bonuses.
Of course, we should not be shy in shining a light
on this issue and some people in the Square Mile
as in any industry are paid more than their per-
formance justifies.
Despite this, it is not the role of government to
set pay levels in private firms. For the vast majority
of firms (those not currently owned or run by the
government) remuneration is a matter for share-
holders and we need to find ways to encourage
them to take a more active role in ensuring remu-
neration is justified.
Proposals such as greater transparency might
help in this regard, but we should be wary of unin-
tended consequences. We have seen banks shed
tens of thousands of jobs in recent months, partly
due to the shift away from flexible bonuses to high-
er fixed salary costs that was encouraged following
the financial crisis. (And see the article, right, on
the perils of new simplification proposals.)
We must remember too that high pay brings its
own opportunities to support wider society. Many
people across the City make vast philanthropic con-
tributions but choose not to make such acts public.
The City has always thrived in the past by keeping
its head down, but now is the time to make a noise
about these efforts.
Such giving does not justify high pay it should
ultimately come down to performance. But it does
show that City workers recognise the need to con-
tribute to the wider community during this age of
austerity.
David Wootton is Lord Mayor of the City of
London.
Like Terry or Lampard,
City stars are worth it
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
BY DAVID WOOTTON
T
HOSE lucky San Franciscans. One
hour north and theres Napa Valley.
A hop skip and a jump (or 30 min-
utes) east of Napa and youre in the
stunning Sonoma wine region. Natural
wonders including Lake Tahoe, Yosemite
and the Big Sur are all on your doorstep.
Top that with the fabulous food and drink
and its enough to make you want to move
there.
The mood before our flight home to
London needless to say is sombre. Were
sipping our last glass of California
chardonnay in Zuni, a small restaurant in
a groovy corner of the Castro neighbour-
hood, indulging in one last delight, the
restaurants signature wood-fired oven-
roast chicken served over Tuscan bread
salad.
Only a week has past and its been a
whirlwind of Californian bliss. Our holiday
concept was simple: San Francisco and the
Napa Valley, for an unbridled culinary fes-
tival, followed by a brief whistle-stop at
Yosemite before flying home.
The Clift was our San Francisco abode.
The iconic hotel, one of the earlier Philippe
Starck boutique hotels, marks its tenth
anniversary this year and is still as cool
as ever when we arrive. Stepping in here
is like entering a surreal nightclub. The
lights are dim and atmospheric with
sculptural furniture dotted everywhere.
The rooms, by contrast, are light, sleek
and larger than youd expect, with Malin
& Goetz toiletries and luxurious high
thread count sheets.
The cornerstone of the Clift is its brood-
ing double-height Redwood Room on the
ground floor, a highly atmospheric bar,
and hub for the citys nightlife at week-
ends. It divides reviewers (Tripadvisor
describes it as a nightclub hotel, the
derogatory term used for hotels that pri-
oritise being a night time hotspot over
serving guests), but I loved it. The atmos-
phere is upbeat, young and well, quite
sexy and the best bit is you can enjoy
cocktail upon killer cocktail safe in the
knowledge that your bed is just floors
away.
But first, food. We start with A16, a culi-
nary hotspot in the hip Marina District.
The restaurant is famed for rustic
Southern Italian cuisine and as we step
inside, the wood-fired oven is burning at
full pelt (reservations are essential). We
feast on Arugula, medjool dates and
pecorino salad, finishing with the restau-
rants signature: Chocolate budino tart
and sea salt, topped with extra virgin olive
oil (Sounds dubious but trust me, it works.)
Next its Bin 38, a cult wine bar on Scott
Street, known for its extensive California
wine list. We sip Californian Brown Estate,
Napa Valley Zinfandel in the bars fairy-lit
garden, warming ourselves in front of a
roaring fire pit, before heading back to the
hotel bar (3am. Oof).
The following day is spent at the usual
tourist spots; Alcatraz, Haight-Ashbury
the famed Janis Joplin haunt and hub of
the 1960s hippy movement before its
time to go again.
This time The Mission is our target. The
mission in San Francisco started out as a
poor Mexican immigrant neighbourhood
but today is one of the hippest areas of the
city. It boasts a fabulous array of Mexican
restaurants and we head to family eatery
Puerto Alegre, a small cheap-as-chips joint
on Valencia Street with authentic food
(you cant make reservations here. You
come, you wait. Thats it.) We pig out on
There is more to San
Francisco than the
Golden Gate
Bridge its also a
food and wine hub
The area around
the famous city is
full of natural
wonders many of
them edible, says
Lucie Green
TRAVEL NOTES
BY STEVE DINNEEN
Australia to set up marine park bigger than Germany
Australia has agreed to set up the world's biggest marine park to protect
vast areas of the Coral Sea off the country's northeast coast and the site
of fierce naval battles during World War Two. The park will cover almost
1m square km an area the size of France and Germany combined and
will set up a haven for fish, pristine coral reefs and nesting sea birds.
San Francisco: the foodies dream
Lifestyle | Travel
32 CITYA.M. 28 NOVEMBER 2011
Flights to Russia just got cheaper
The EU and Russia have agreed to phase out the fees paid by EU air carri-
ers in order to fly trans-Siberian routes, which should mean a reduction in
the cost of flying from Europe to East Asia. Any charges now paid by EU
airlines to the Russian authorities will have to be cost-related and trans-
parent. The new arrangement will come into force on 1 January 2012.
St Anton ready to open two new hotels
New mountain design hotel The Mooser will open this week in St Anton,
one of Austrias top ski resorts. Surrounded by breathtaking scenery, this
stylish and contemporary hotel has eight double rooms, seven suites and
two junior suites. Following soon after will be the M3 hotel, with three
suites, 15 superior double rooms and seven double rooms.
T
oday is Cyber Monday, which means
at some point this evening we will all
finally be subsumed into the greater
consciousness of the net. Dont panic,
life will be better there. There wont be any
nasty personalities or individuals or
things, just an infinite loop of the John
Lewis advert playing over the surface of our
conjoined minds like a schmaltzy, festive dose
of heroin.
Cyber Monday is the busiest
online shopping day of the year,
on which everyone tries to avoid
playing Russian roulette with the
postal service by ordering their gifts a
full four weeks before the event. It follows
Black Friday, which isnt as ominous as it
sounds: it gets its name from the densely-
packed human traffic milling senselessly
through the streets of every major western
city on one of the busiest days on the high
street. Inexplicably, the days between the
two have yet to be named (I suggest
Crazy Saturday and Crme brle
Sunday).
This year, more than a third of
Why its time to ditch the term Cyber Monday
GEEK SPEAK
@steve_dinneen
Christmas presents will be bought over the
internet, in what is predicted to be the
biggest online shopping day ever. This is,
depending on who you ask, either:
A) The saviour of Christmas, the day
retailers make enough money to stop the
high street from going bankrupt, pack-
ing up and leaving a muddy channel
through the middle of every provincial
town in the country.
B) The day the internet breaks
under the weight of all the digital traf-
fic and cyber criminals claim the smoul-
dering remains as their own, like futuristic,
weedy barbarians (given that scientists have
calculated that the weight of all the elec-
trons making up the internet only
weigh about as much as an egg,
this seems unlikely). The sec-
ond eventuality is preferred by
fans of the elusive millennium
bug.
Neither has very much merit. The very
name Cyber Monday is anachronistic its
the equivalent of an ancient civilisation
dreaming up a deity to explain electricity.
Pretty soon almost everything will be
ordered online. It doesnt need to be called
Cyber Monday any more than tomorrow
needs to be called Getting Out of Bed and
Going To Work Tuesday.
Of course, in the future we wont have to
get out of bed anyway. Well be able to
experience the full tedium of life from our
embryonic sustenance pods, living out the
daily grind in a simulated digital reality. Its
the logical next step from the Chinese World
of Warcraft sweatshops, in which armies of
workers spend 14 hours a day mining virtual
gold. So thats something to look forwards
to while you order your presents. Merry
Christmas.
Mexican pulled pork, fajitas, corn chips
and eye watering fresh salsa. The night is
capped with drinks at Blondies next door,
one of the areas buzziest cocktail joints
(famed for its dive bar vibe, generous
read pint size martinis and live music.)
The next day activity is required to shake
the cobwebs. We opt for a breathtaking
cycle (through local hire company Blazing
Saddles) across the Golden Gate Bridge to
nearby town Sausalito and sip beers in the
sunshine. We return and visit Humphry
Slocombe, one of the citys award-winning
boutique ice cream companies. (Think:
Strawberry Candied Japelapeno and Blue
Bottle Vietnamese Coffee.)
Napa is only a 40-minute drive from
downtown San Francisco but feels worlds
away when we arrive in the sun-drenched
leafy confines of Yountville, one of a series
of towns along the St Helena Highway.
Were staying at Bardessono, a sleek bou-
WHERE TO GO: | FOODIE SAN FRANCISCO AND NAPA
l Zuni: Neighborhood restaurant with a
difference. Pre-order the Roast Chicken.
www.zunicafe.com; A16: Southern Italian
food, stone baked Pizzas. Bliss.
www.a16sf.com
l Delfina: Modern Italian fare with a killer
wine list. www.delfinasf.com
l Puerto Alegre: Cheap, unbeatable
Mexican food. 546 Valencia Street, San
Francisco, 001 415 255 8201;
l Blondies: Killer martinis, Cajun live
bands. There needs to be one of these in
London. www.blondiesbar.com
l Humphry Slocombe: Ice cream, but not
as we know it:
www.humphryslocombe.com;
l Bouchon: Didnt make it in to French
Laundry? Dont worry. You can always con-
sole yourself in the restaurants more afford-
able (but nonetheless excellent) sister venue
www.bouchonbistro.com
l Oakville Grocery: Rustic breads, deli-
cious deli food and gourmet salads for the
road in the heart of Napa. www.oakvillegro-
cery.com
l Napa Wine Co: Boite for the areas inde-
pendent wineries. www.napawineco.com
(Flights start at $20)
l Frogs Leap: Farm-style glorious setting
with beautiful wines. www.frogsleap.com
(Flights start at $20)
l Cliff Lede: Exquisite wines in a blissful
setting minutes from Yountville. www.clif-
fledevineyards.com
tique hotel in the heart of town.
Bardessonos USP is its eco-friendly poli-
cy its one of only two hotels in the US to
be LEED certified by the US government
but thankfully none of this is at the
expense of luxury. There are great practical
touches solar panels, its paperless, organ-
ic linens but the rooms are still suitably
decadent. Our suite boasts its own terrace,
a jacuzzi the size of my flat and a working
fireplace. Refreshingly, in contrast to the
abundance of cutesy B&Bs in the area, its
also feels quite young and hip. We spend an
afternoon sipping margaritas in serviced
cabanas at the hotels rooftop pool, which
sweeping views across the valley.
The best thing about Bardessono is its
location. Smack bang in the middle of
town, theres no need to drive or take taxis
(handy as its approximately four minutes
walk from the world-famous French
Laundry and sister restaurant Bouchon).
Its also a great spot to explore the valley.
The hotel offers complimentary bicycles to
guests and will even collect you should the
zinfandel sipping turn a little enthusiastic.
The main Napa towns Oakville, St Helena
and Calistoga are all within easy reach by
bike. The three of us set out and visit The
Napa Wine Company, in Oakville (20 min-
utes gentle cycle away.) The venue is a col-
lective-supported tasting room for small
independent wineries and we spend an
hour sampling red wine. Next up its Frogs
Leap a farm-style vineyard with breezy
verandas, comfy chairs and delicious
chardonnay. We finish with cycle along the
Silverado trail before a quick tasting at Cliff
Lede vineyards open-air terraces.
The wind down is a good idea, it turns
out, because what follows is nothing short
of a foodies dream. London may have wel-
comed The French Laundry lately but it is
nothing compared with experiencing the
legendary three-Michelin-starred restau-
rant in its home setting. Getting in here
isnt easy. It takes me a steady two-month
campaign of follow-ups, both through the
restaurant and Relais & Chateaux who rep-
resent it, to get in. But its worth it. The
restaurant occupies a small innocuous
vine clad house. Once inside its all hushed
sound and warm lighting. The restaurant
serves two set menus. Both cost $270
without wine and include service.
Courses, tit bits and foie gras flow. Its
the perfect finale to our Napa stay because
we leave feeling like we could never eat
anything again . . . Well, almost.
Bardessono low season rooms begin at approxi-
mately $499 and in peak season start at $899.
www.bardessono.com. Clift Hotel rooms start at:
$250 per night. www.clifthotel.com. For French
Laundry reservations: call Relais & Chteaux: 00
800 2000 00 02 (toll free) or visit the website at:
www.relaischateaux.com.
Stunning vistas are
just a short ride
away from the city.
The Bardessono
(inset left) is a luxu-
ry, eco friendly hotel.
Yosemite (inset
right) is wonder to
feast your eyes on
Today is expected to
be the busiest online
shopping day of the
year
WHERE TO GO: | EXTEND YOUR TRIP TO YOSEMITE
l Yosemite National Park is just four
hours drive from both Napa and San
Francisco and well worth the trip if you
have time. The vast terrain, El Capitan,
waterfalls and valleys are truly spectacular.
Entrance to the park is $20 for a weeks
unlimited access. There is only one hotel in
the park itself, the historic Awahee, but
with rooms at roughly 300 its an expen-
sive option. We stay at Tenaya Lodge, just
outside the park, and its perfect. The hotel
is a large, family-style place (think antlers,
fireplaces, Navajo print) perched high on
the hill and offers terrific value at roughly
150 per room per night. There are two
pools, three restaurants, a spa, well-
equipped rooms and its only a short drive
to all the key sites in the park. The
concierge service is impartial, authoritative,
and open throughout the day. With guid-
ance we self-drive the park, pre-ordering a
packed lunch from the hotel ($15) and hire
bikes to cycle the Yosemite Valley floor.
www.tenayalodge.com For more informa-
tion about Yosemite, see:
www.Yosemitepark.com
THE ULTIMATE LUXURY
CHRISTMAS HAMPERS
OUR GUIDE TO FORTNUM &
MASONS SEASONAL BASKETS P34
33 CITYA.M. 28 NOVEMBER 2011
ST NICHOLAS HAMPER
Fortnum & Mason has offered the finest Christmas gifts for more than 300 years. Treat someone
special to the ultimate luxury present this year with one of their famous hampers, by Steve Dinneen
Welcome to Xmas hamper heaven
Lifestyle | Shopping
CITYA.M. 28 NOVEMBER 2011 34
150
lJubilee Biscuit Selection, 500g Tin
lAfternoon Blend Tea, 125g Tin
lApricot Preserve, no.98
lBurleigh Mug
lChristmas Coffee, 250g Tin
lChristmas Curd, 327g
lChristmas Spiced Preserve, 340g
lJubilee Clotted Cream & Pistachio
Biscuits, 250g Tall Tin
l900g Mulled Wine Spice Bag
THE BURLINGTON HAMPER
CHRISTMAS TEA HAMPER
SOMMELIER HAMPER
CHILDRENS
CHRISTMAS
HAMPER
45
lChocolate Gold Coins
Bag
lApple & Custard
Splendid Sweets
lChildrens Mug
lPolar Bear Iced Biscuit
lPenguin Iced Biscuit
lRudolph Choc Lollipop
lSeaside Fudge Tin
250
lFortnum's Demi-Sec N.V, Louis Roederer
lFortnum's Argentinian Malbec, Chakana
lFortnum's Canon-Fronsac, La Roche du Gaby
lFortnum's Chteauneuf-du-Pape, Chteau Simian
lFortnum's Chianti Classico, Riecine
lFortnum's Dolcetto, Vajra
lFortnum's Douro Vinho Tinto, Niepoort
lFortnum's Gavi Terrarossa, La Zerba
lFortnum's Oloroso VORS, Bodegas
Tradicion Half Bottle
lFortnum's Pouilly Fuiss 'Terres de
Pierres'
lFortnum's Ruster Ausbruch, Feiler
Artinger
lFortnum's Tawny Port 10 Years
Old 50cl, Niepoort
300
lAkbar Blend Coffee, 250g Tin
lApricot Preserve, no.98
lAssorted English Creams,
250g Box
lCognac Butter, 210g
lCountess Grey, 250g Tin
lCrystallised Ginger, 300g Box
lFortnum's Pedro Ximenez
VOS, Bodegas Tradicion Half
Bottle
lFortnum's Ros Champagne,
Bottle
lFortnum's Saint Romain, Alain
Gras
lFortnum's Sancerre, Andre
Dezat Loire 2010
lHighgrove Onion Marmalade
lJubilee Royal Sovereign
Strawberry Preserve, 340g Jar
l907g poly basin, serves 6-8
l500g
lLucifer Biscuits, 300g
Tin
lOld English Hunt
Marmalade, 340g
lRose Biscuits, 250g
Tin
lSuperb Milk Selection,
500g Box
lChocolate Biscuit Selection,
600g
250
lBurlington Marmalade 340g
lChocolate Dipped Orange
Slices, 140g
lCrystallised Peppermints,
200g Box
lAssorted Squares, 175g Box
lHighgrove Lemon Curd
lHighgrove Raspberry &
Blackberry Preserve
lJubilee Clotted Cream &
Pistachio Biscuits, 250g Tall
Tin
lMarzipan Fruits, 275g Box
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
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KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
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or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
4 Chaos (5)
7 Discharge (7)
8 31 December
(3,5,3)
12 Alliance (9)
15 Ready-to-wear
(3-3-5)
20 Shore next to
the coast (7)
21 Conjecture (5)
DOWN
1 Central area of an ancient
Roman amphitheatre (5)
2 Exhaled with force (4)
3 Female pantomime
character (4)
4 Listen (4)
5 Long depression in the
surface of the land (4)
6 Heavy wooden pole tossed
as a test of strength (5)
9 Agent used in
fermenting beer (5)
10 Nimble, spry (5)
11 English explorer said to have
been saved by Pocahontas (5)
13 In an early period of life (5)
14 Behind (5)
16 Front of the human head (4)
17 Expression of dislike (4)
18 Drench (4)
19 Make changes in text (4)
O
F
S
H
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4


4


S O R B E T G A
E O E B B I N G
T A B L E A U G A
U E K N I G H T
P E P Y S Y L E
A N I L I N E
S Y L P A R K A
P A M P A S T W
I E G O R I L L A
R E N T E D O K
E T A U N T I E
2 3 7 1 3 1 6 2
9 6 8 7 6 4 9 8
1 9 5 1 2
9 4 9 8 1 2
7 2 3 5 8 4 9 6 1
8 4 2 6
4 3 2 6 1 7 8 9 5
5 1 9 2 6 8
9 8 3 1 8
2 1 4 3 9 5 7 8
9 4 8 7 2 3 5 1
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
DIVERGENT
Lifestyle | TV&Games
35 CITYA.M. 28 NOVEMBER 2011
Business Features | Entrepreneurs
36
Donata Huggins meets
a scion of a newsprint
dynasty, now making
a name for himself in
the online space as he
reclaims video rights
A
LL we ever seem to hear these days is
that the UK venture capital market is
behind the US venture capital market. Yet
direct comparisons between the two is
not always helpful.
The US venture capital market is about 30
years old. By contrast, the UK (and European)
venture capital market is only in its awkward
teenage years. Not only that, development dur-
ing its early years was slowed by the false dawn
of the dotcom bubble during the late 1990s and
its crash in the early 2000s.
The US market is not only more established
than the UKs, but a key ingredient in its success
has been the recycling of skills, money and time
from its home-grown entrepreneurs. This recy-
cling has been typically lacking in the UK, with
our entrepreneurs and start-ups seeking capital
from bankers and financiers that may lack real-
life experience in building a business.
However, over the past few years we have
started to see the emergence of a new breed of
entrepreneur-backed VC funds. Led by Index
Ventures and closely followed by the likes of
Atomico, Notion Capital, Open Ocean and
ProFounders, these venture capitalists are rein-
vesting their essential experience and capital
into todays start-ups. This has provided a solid
foundation for a more successful venture capital
ecosystem in the UK and, in support of this, we
saw an upswing in European funding and exits
between 2009 and 2010. The UK and Europes
venture capital and start-up ecosystem is now
viable in its own right, rather than being
dependent on the US.
Two main criticisms levelled at the UK ven-
ture capital market are that it is risk averse and
that the funds are too small. Its undoubtedly
true that both the UK and European markets
have been traditionally much more risk averse
than their US counterparts. Just before the cur-
rent economic downturn we were starting to
see bolder investments, but as soon as the cred-
it crunch hit this quickly slowed down. It is also
true that there are more and bigger funds in the
US; but again, given the disparity in maturity of
each market this shouldnt really come as a
huge surprise.
The reality is that the US market is overheat-
ed. An over-supply of money has led to excep-
tionally high valuations, leaving start-ups under
huge pressure to execute flawlessly just to be
capable of living up to expectation. An example
here is the latest rumoured valuation of
Groupon at $11.4bn, an amazing price for a
young business nowhere near turning a profit.
There is a fine line between a healthy appetite
for risk and throwing money at a business with-
out due consideration. After all, its not like con-
sumers and businesses have more money to
spend even markets going through major
changes are ultimately finite in size.
In contrast, the European market has less
competition and subsequently less inflation on
deals and other costs associated with early
stage businesses (hiring staff, office space),
meaning that it is arguably better balanced
than the US right now and its actually possi-
ble to strike good deals at the right price. Add
to this how different regions in Europe are
demonstrating specific areas of specialisation
and learning to work together, usually with
London as the hub, and the case builds for
investing in the UK and Europe.
Recently, Google invested in Londons East
End Tech City, committing to a centre for start-
ups. This isnt just a US tech company with
cash-reserves to burn; its a very clear sign that
the market has global recognition and is worth
investing in.
Jos White is an entrepreneur and co-founder
of venture capital and advisory fund, Notion
Capital.
A NEW BREED OF
VC FUNDS IS THE
UKS BEST FRIEND
JOS WHITE
PARTNER AT NOTION CAPITAL
A
LMOST every Brit has heard of
Kelvin MacKenzie: the opinionat-
ed, controversial editor of the Sun
newspaper in the 1980s and early
1990s who went on to become a succesful
media entrepreneur. His son Ashleys
story however is also interesting and
comparatively little known. Unlike the
rest of the MacKenzie family, he did not
become a journalist. Everyone in my
family is a journalist: my grandparents
were journalists, my mum and dad met
working on a local newspaper, my sister
and brother are journalists, even my
cousins theyre all journalists. Im not
gifted in writing though, so I never
thought about it, he says.
Ashley went into business, working his
way up to director level in marketing and
advertising, only to be poached by his
own dad to become the sales controller
for Talk Radio UK, before moving up to
become the general manager for
Talksport and then managing director for
Independent Local Radio, the firm that
grew into the Wireless Group and was
sold to UTV Media.
ON THE RIGHTS SIDE
Ashleys cut of the profits gave him the
capital he needed to start his own ven-
ture in 2007: MyVideoRights, recently
rebranded as Base79. The idea no doubt
sprang from the experiences of his fami-
ly: People who create video media, the
content creators, get nothing. As soon as
they produce something, it ends up
online, on YouTube, being viewed for
free. Base79 hopes to change that.
Working on behalf of big hitters like the
Football Association and Ministry of
Sound, it monetises the video content
that ends up online for the creator by
reclaiming the rights to the footage and
placing advertising around it. Its based
on the basic belief that the guy that came
up with the idea and created the video
should get paid for it.
The sum he got from the sale of the
Wireless Group was not enough to make
the start-up process easy. My father
made lots of money, I made some, he
laughs. To expand to America, where
Ashley and his family now live, he had to
pull his kids out of school and earn noth-
ing while the company launched out
there. Starting a business is impossible
unless you have a really supportive fami-
ly, he says. The gamble has paid off, how-
ever. The company has attracted 2.75m
of investment for its expansion plans.
Bluntly, Ashley says hes glad he moved
for the business. Theres a very different
business culture in the States: the speed
in which you can attract investment is
extraordinary and the market is so much
bigger because the BBC isnt there to
halve the market the BBC is a commer-
cial media killer. He might not have
gone into journalism, but hes certainly
as opinionated as his father.
Company name: Base79
Number of staff: 30
Company revenue: below 10m per year
Job title: Founder and chief executive
Age: 39
Born: Dartford, Kent
Lives: Old Greenwich, Connecticut, USA
Studied: Biology & geography, Bristol University
Drinking: White wine
Reading: Lord of the Rings
Idol: Simon Cowell
Favourite business book: Only the Paranoid
Survive by Andy Groves
Motto: Jump, you might just fly.
First ambition: It was to play cricket for
England.
CV | ASHLEY MACKENZIE
Finding the way to make
internet content pay off
The guy that came up with the idea should get paid for it.
ENTREPRENEURS NEWS | IN BRIEF
WEB COULD BE THE KEY FOR SUCCESS
Small businesses can use clever website
design as a tool to compete against large
businesses. Recent research released by Yell
shows that when websites are equally
matched in sophistication and utility, the con-
sumer is less likely to be able to make the dis-
tinction between the size of the business, and
two-thirds of consumers would choose the
small businesss website over the large busi-
ness. The websites clarity and simplicity in
displaying information is also key in helping
the consumers decision on whether or not to
make a purchase.
GOV TO GIVE MORE TO UNI ENTREPRENEURS
The government will give 500,000 in fund-
ing to university enterprise societies in order
to promote and support the new wave of
young entrepreneurs. The minister for busi-
ness and enterprise Mark Prisk announced
the funding move last week, noting how this
ties in with the current push for encouraging
young entrepreneurs to make their ideas hap-
pen in an effort to boost the UK economy. An
innovation fund will also be set up to award
up to 8,000 to individual university enter-
prise societies to boost the schools entrepre-
neurial activity.
THREE QUARTERS PREFER SMES
More than three quarters of jobseekers prefer
working in small to medium-sized businesses
(SME), new research from Hays, a professional
recruiting group, shows. However, despite the
positives of SMEs that jobseekers listed, like
greater responsibility, more collaborations with
senior employees and an increased hands-on
approach, concerns about uncompetitive
salaries and benefits deter them from applying.
Instead, they pursue employment at larger busi-
nesses. Job security and stability are additional
appealing aspects of large businesses that job-
seekers noted attract them as well.
Sport
37 CITYA.M. 28 NOVEMBER 2011
SIGNING OFF IN STYLE
WORLD champion Sebastian Vettel warned
his rivals theres no chance he or his Red
Bull team will be resting on their laurels
next season.
Vettels team-mate Mark Webber led
home a Red Bull one-two, his first victory of
the season, in Brazil with Britains Jenson
Button third.
German Vettel, now a back-to-back world
champion, had been on course to cap a near
perfect 2011 campaign with his 12th grand
prix win of the year but was hampered by
gear box trouble. The 24-year-old, though,
was able to nurse his car to the chequered
flag.
We had an amazing season and it would
be over the top being upset now, so we take
this second place, he said afterwards.
It has been a phenomenal year and a
very strong finish now as well. We are all
looking forward to the break and coming
back as strong as this year.
SWISS superstar Roger Federer capped his
100th career tournament final with a
record sixth victory at the ATP World Tour
Finals in London after vanquishing Jo-
Wilfried Tsonga in three high-quality sets.
Federer was pushed all the way by
Frances Tsonga but had just enough in his
locker to complete a 6-3, 6-7 (6-8), 6-3 win
and collect a cheque for 1m.
Victory saw Federer, 30, eclipse Ivan Lendl
and Pete Sampras, whom he shared the pre-
vious record of five titles with, and after-
wards he told a packed 02 Arena that it
ranked as one of his finest accomplish-
ments.
He said: I just tried to recuperate from
Basel and Paris and hopefully get through
the round-robin stages. So now its finally a
reality that Ive been able to win six World
Tour Finals. Its an amazing feeling. I know
its one of my greatest accomplishments.
Webber wins season
ending race in Brazil but
the glory goes to Red
Bull team-mate Vettel
Federer ends his year
on a high to claim
record sixth ATP
World Tour Finals
BY JAMES GOLDMAN
TENNIS

FORMULA ONE

Federer became
the oldest winner
of the tournament
Picture: GETTY
Vettel ended up
winning the title
by 122 points
Picture: GETTY
Sport
38
I was given the tragic news
this morning. To say I am devas-
tated is an understatement. My
thoughts and prayers go out to
Garys family and friends. Today
the world has lost a great football
manager but even more sadly a
great man. He will be missed by
all Wales captain, Aaron
Ramsey
I am totally devastated. Gary
Speed was one of the nicest
men in football and someone I am
honoured to call a team-mate and
friend Former Wales interna-
tional, Ryan Giggs
He was a very respected
man in and around football,
not only for his ability but for the
guy as a person. I signed Gary
for 5m from Everton and he did
a fantastic job for us at
Newcastle, during the time I was
there and after Id left as well
Liverpool manager, Kenny
Dalglish
Gary was a magnificent
person, bright, fun and a
wonderful family man he lit up
every room he walked into. I am
proud to have been his friend
and will miss him dreadfully
Former Newcastle captain,
Alan Shearer
I, and all of the football
family of Wales, am devas-
tated by the news of Garys pass-
ing. My thoughts and prayers are
with his wife and family at this
difficult time Football
Association of Wales chief
executive, Jonathan Ford
Gary Speed, MBE
1969 2011

SWANSEA boss Brendan Rodgers

insisted his side were eager to honour
the memory of Wales manager Gary
Speed, who passed away yesterday, by
ensuring their Premier League fix-
ture against Aston Villa went ahead.
Four members of the Wales nation-
al squad were involved in the fixture
as Swanseas Ashley Williams, Neil
Taylor and Joe Allen as well as Villas
James Collins started for their respec-
tive clubs, while Villa keeper Shay
Given and second half substitute
Jermaine Jenas both played with
Speed at Newcastle.
Gary was brilliant for these guys
for the short period of time he was
with them. I think our message was
that we wanted to play the game for
Gary Speed because he was a brilliant
football man, as well as a great player
and human being, said Rodgers.
The players wanted to do it for
him and then it has set in after the
game and its difficult for them.
Understandably, under the circum-
stances, the game failed to catch light
with neither goalkeeper unduly trou-
bled until Given blocked Leroy Litas
effort from close range late on. At the
other end Michel Vorm saved from
Darren Bent, whose Villa side have
won just one of their last six matches.
Rodgers: Players wanted
to honour their manager
MANCHESTER CITY manager Roberto
Mancini defended controversial striker
Mario Balotelli, whose red card
sparked a period of late Liverpool pres-
sure that nearly cost the Premier
League leaders their unbeaten record.
Vincent Kompany put the visitors
ahead in the 31st minute when he met
David Silvas corner with his shoulder,
rather than his head, but the lead last-
ed just two minutes when the
Belgians defensive partner Joleon
Lescott deflected Charlie Adams shot
past Joe Hart.
Balotelli was introduced midway
through the second half but a madcap
cameo lasted only 18 minutes. The
Italian was booked first for a tug on
Glen Johnson and was given his
marching orders seven minutes from
the end for striking Martin Skrtel with
his arm.
Mancini said: I think every time
Mario does something many players
provoke him. Mario should pay atten-
tion because he knows many players
provoke him and this is not correct.
Because of his red card we conceded a
few chances from Liverpool.
Indeed, City were ultimately indebt-
ed to Hart, who made a crucial late
double save to deny Andy Carroll and
Luis Suarez.
Mancini defends Balotelli as
Hart stopper denies Liverpool
FOOTBALL

0
0
SWANSEA
ASTON VILLA
BY JAMES GOLDMAN
FOOTBALL

1
1
LIVERPOOL
MAN CITY
THE FOOTBALL world was numbed
yesterday and united in grief after
Wales manager Gary Speed was found
hanged at his home in Cheshire.
The body of 42-year-old Speed, who
had appeared on the BBCs magazine
show Football Focus on Saturday
afternoon, was discovered yesterday
morning.
Police insisted there were no suspi-
cious circumstances surrounding
the death of Speed, who seemed des-
tined for a stellar managerial career
having recently triggered the renais-
sance of a vibrant young Wales side,
spearheaded by the likes of Arsenals
Aaron Ramsey and Tottenhams
Gareth Bale.
A spokeswoman for Cheshire Police
said: Officers went to the scene
where a 42-year-old man was found
dead. The next of kin have been
informed and have confirmed the
identity of the man as Gary Speed.
There are no suspicious circum-
stances stances surrounding the
death. The family have requested that
they are left in peace to grieve at this
difficult time.
Tributes poured in yesterday for
Speed, who leaves behind a wife and
two young children, each one paying
tribute to his unwavering profession-
alism and integrity.
Speeds former Wales team-mate
Ryan Giggs summed up the mood of
disbelief. I am totally devastated, he
said. Gary Speed was one of the
nicest men in football and someone I
am honoured to call a team-mate and
friend. It goes without saying my
thoughts are with his family.
Speed, the first man to play 500
Premier League games, made his
debut as a 19-year-old for Leeds United
and only hung up his boots last May
when he was combining playing and
coaching duties at Sheffield United,
who he then went on to manage.
An elegant but fiercely competitive
midfielder, renowned for his aerial
prowess, Speed played an integral role
in Leeds Uniteds First Division cham-
pionship triumph in 1992. He moved
to Everton in 1996 for 3.5m and after
two seasons at Goodison Park he was
lured to St James Park by then
Newcastle boss Kenny Dalglish.
He spent six years on Tyneside,
enjoying particular success under Sir
Bobby Robson, who described Speed,
capped 85 times by his country, as a
blue chip player and person.
After Kevin Blackwell was sacked
early the 2010/11 season, Speed took
up the managerial reigns at Bramall
Lane, and despite his limited experi-
ence, the Football Association of
Wales saw him as the ideal candidate
to succeed John Toshack as national
team boss.
Speed, who was awarded the MBE
in the 2010 Birthday Honours for his
services to football, had recently
presided over a run of four wins in
five matches to climb to 50th in the
world rankings.
BY JAMES GOLDMAN
FOOTBALL

Speeds death stuns

football world
Man City 13 11 2 0 43 12 35
Man Utd 13 9 3 1 30 13 30
Tottenham 12 9 1 2 26 16 28
Newcastle 13 7 5 1 19 12 26
Chelsea 13 8 1 4 28 17 25
Liverpool 13 6 5 2 17 12 23
Arsenal 13 7 2 4 26 23 23
TOP SEVEN
TEAM PLD W D L F A PTS

Tributes pour in for Wales manager, found

hanged at his home in Cheshire aged just 42
WINNING HERE IS ONE OF MY
GREATEST ACHIEVEMENTS
FEDERER ENDS YEAR ON A HIGH WITH
SIXTH ATP WORLD TOUR FINALS WIN: P37
39
FORMER South Africa head coach
Jake White is the latest high-profile
candidate to have distanced himself
from succeeding Martin Johnson as
England manager.
Johnson resigned earlier this
month following Englands cata-
strophic World Cup campaign which
ended in abject defeat to France in
the quarter-finals and was under-
mined by off-field controversies.
White, who masterminded South
Africas World Cup victory back in
2007, admits the prospect of a return
to international rugby is an intrigu-
ing one, but at present his focus
remains on his commitments with
Super 15 side the Brumbies.
It would be wonderful to be back
on the world stage, but Ive commit-
ted myself to [the Brumbies], said
White, 48. Its something Id like to
aspire to again. But this moment in
time Im enjoying the fact Ive got a
new challenge.
Embattled Rugby Football Union
chief Rob Andrew, still reeling from
the Twickileaks scandal that led him
to claim the sport in England was at
rock bottom, has already seen for-
mer Italy coach Nick Mallett, New
Zealands World Cup winning coach
Graham Henry and Sir Clive
Woodward reject the role.
White not keen on England
A GAME IN MOURNING
Joe Allen (left) was one of three Swansea players, who featured for the Welsh
national team under Speed, to put yesterdays shocking news behind him
and turn out for his club against Aston Villa.
Picture: ACTION IMAGES
Aston Villa goalkeeper Shay Given, a
former Newcastle team-mate of
Speed, learned of the news shortly
before kick-off.
Picture: GETTY
Liverpool players observed a minutes
silence but Craig Bellamy, a former
Wales team-mate of Speed, was given
permission to miss the game
Picture: ACTION IMAGES
Results
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email sport@cityam.com
SPORT | IN BRIEF
Americans win World Cup
GOLF: American duo Matt Kuchar and
Gary Woodland hit six birdies in a closing
67 to win the World Cup by two shots in
China. Englands Ian Poulter and Justin
Rose carded a nine-under-par 63 to finish
second alongside Germany on 22 under.
Quins make it nine from nine
RUGBY UNION: Premiership leaders
Harlequins moved nine points clear of sec-
ond placed Saracens with a 39-8 home
win over Newcastle, their ninth consecu-
tive victory this season. Seb Stegmann
and Danny Care went over in the first half
with Jeremy Manning responding. Luke
Wallace crossed for Quins third try and
Mike Browns effort added the bonus
point, before Stegmann scored his second
and James Johnston went over late on.
RUGBY UNION

The stronger the backup

the more condent you can be
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