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Life science
firms to get
180m fund
DAVID Cameron will today unveil a
new 180m fund to help firms in the
life science sector bring their prod-
ucts to market more quickly, as part
of a new strategy designed to boost
Britains biomedical industry.
The Prime Minister hopes the fund
will help bridge the so-called valley
of death the period between when
a firm conceives a new drug or med-
ical technology and the moment at
which the market is ready to invest
in it.
The government says that private
investors want to see evidence that
products will work in humans
rather than laboratory animals
meaning that some of the best inno-
vations never see the light of day.
Cameron is expected to say: I
want the great discoveries of the next
decade happening in British labs, the
new technologies born in British
Small and medium-sized life sci-
ence firms will be able to apply to the
so-called Biomedical Catalyst Fund,
as will some university departments.
Meanwhile, Cameron is expected
to announce a new early access
scheme for seriously ill patients,
which would see them get access to
new drugs a year before they are fully
licensed. And he will announce plans
to share patients NHS records with
private health companies, in a bid to
encourage greater co-operation
between the public and private sec-

David Cameron could face a backbench rebellion if he does not do more to fight anti-City regulation in Brussels Picture: REUTERS
A RECORD 49 new EU regulations are
about to hit the City, prompting calls
from industry groups, think-tanks and
Tory MPs for David Cameron to do
more to protect British interests at a
European level.
A tidal wave of rules, covering areas
from derivatives trading to the loca-
tion of clearing houses and short-sell-
ing to insurance, will hit the UK
disproportionately hard, think tank
Open Europe warns today in a compre-
hensive report underlining the creep
of European financial legislation.
John Redwood, the influential
Conservative MP, told City A.M. the
onslaught of regulation would dam-
age the UK and warned there could be
a Tory rebellion if David Cameron does
not do more to fight for Britain.
As the City contributed 53.5bn in
tax in 2009-10 around 11 per cent of
total revenues and generated a sub-
stantial trade surplus, Open Europe
argues it is vital that the UK govern-
ment has a larger say in any new regu-
Cameron would be right to use EU
treaty changes to ask for an emergency
brake to halt regulation that could
harm financial services and the wider
economy, said Open Europe.
Redwood added: It is vital to protect
financial services. They are a valuable
asset in terms of jobs and tax revenue,

www.cityam.com FREE
and we need an opt-out to protect
them, he said.
The government should not try to
postpone a renegotiation. Other coun-
tries need us to pass changes, so it is
time to use our leverage and say the
relationship doesnt work any more.
Redwood believes a majority of
Conservative backbenchers agree with
him, threatening Camerons leader-
ship if he fails to use this opportunity
to support British interests.
Luke Johnson, chairman of Risk
Capital Partners, said Europes pro-
posed financial transaction tax was
particularly damaging .
He added: This is a good chance to
stop these populist, xenophobic pro-
posals before they fully take hold.
The City of London Corporation also
warned against protectionism and
said the financial transaction tax
would cost hundreds of thousands of
UK jobs.
Meanwhile, Iain Duncan Smith, the
work and pensions secretary, has
called on the Prime Minister to hold a
referendum on plans for greater fiscal
union in the Eurozone, it is under-
The former Tory leader and a stan-
dard-bearer for the right of the party
said that any major treaty change,
such as the one being devised by
France and Germany, should be put to
a public vote.
Certified Distribution
03/10/11 till 30/10/11 is 100,123
Issue 1,525 Monday 5 December 2011
Central bank independence wont last
SLOWLY but surely, the case for cen-
tral bank independence is being
undone. It may not look like it, with
central bankers being afforded even
greater powers than before the reces-
sion, but we are probably at the high
watermark of their influence and
autonomy. At some stage, as it
becomes clear that monetary policy
has turned into fiscal policy, and
when the full extent of the macro-pru-
dential powers that have been granted
to officials become apparent, there
will be a backlash. The independent
monetary policy committee was man-
ageable in a democracy when it was
confined to targeting consumer
prices, as it was pre-2008 the finan-
cial policy committee will be far more
controversial from the start. Already,
the government is inventing polices
(such as credit easing or subsidies for
95 per cent mortgages) to counteract
the tightening of its own regulators.
As a paper from the Politeia think-
tank by Michael Bordo of Rutgers and
Harold James of Princeton points out,
the intellectual shift towards central
bank independence over the past cou-
ple of decades was based on the view
that their mission was to pursue a
simple rule: minimise consumer price
inflation. The problem is that this is
no longer what they are being asked
to do. Discretion is back, central banks
are once again taking over financial
regulation and monetary stability is
much less of a political priority.
Central banks now have to make
choices about what types of securities
to take into their portfolio; when
there is a possibility of a loss, an
implicit subsidy is involved. Combined
with QE, central banks are now oper-
ating a quasi-fiscal policy. No wonder
pressure for repoliticisation is mount-
ing, especially in the US and EU.
Bordo and James dont pull any
punches. They worry politicians see
monetary policy as a free lunch and
increasingly wish to be able to influ-
ence to whom credit is allocated (to
their constituents, rather than more
globally). Bordo and James compare
this to the interwar period when trade
policy became nationalised, with dis-
astrous consequences.
My own view is that it never made
sense for central banks to focus on
consumer price inflation this obses-
sion is what triggered the bubbles.
One could still have independent cen-
tral banks tasked with a more com-
plex set of rules, aiming at controlling
the growth rate of total liquidity in
the economy. Such rules could have
prevented the bubble, which was at its
core a simple, old-fashioned case of
central banks allowing or encourag-
ing excessive monetary creation (and
its corollary, credit). But central banks
whose job it is to micro-manage the
financial system or who like the
Bank did in October bought 16.9bn
in gilts at a time when the govern-
ment issued 17bn, monetising the
entire deficit, cannot remain inde-
If anything, todays problem is even
greater than that: it is clear from the
global government debt crisis that fiat
money currencies entirely detached
from any commodity or anchor and
produced entirely at the discretion of
government agencies has failed. Its
adoption has abolished all restraints
on governments and has meant that
currencies keep being devalued and
inflated away. Eventually, we will need
a new monetary system more in tune
with the principles of capitalism and
sound money until then, expect ten-
sions between central bankers and
governments to rise and rise.
Follow me on Twitter: @allisterheath
US denies Iran shot down drone
Iranian media reported yesterday that
their countrys military had shot down a
US reconnaissance drone in eastern Iran,
but a US official said there was no indica-
tion the aircraft had been shot down.
NATOs US-led mission in Afghanistan said
the Iranian report could refer to an
unarmed US spy drone that went missing
last week. The incident comes as Tehran
tries to contain outrage at the storming of
the British embassy on Tuesday, after
London announced sanctions on Irans
central bank in connection with Irans
nuclear enrichment programme.
MORE: 20
Bondholder losses may be eased
Germany is prepared to soften language in
the Eurozone's permanent bailout mecha-
nism compelling bondholders to accept
losses in exchange for much stricter budg-
et rules, sources have said. The shift would
not completely remove the possibility of
private bondholders having to accept loss-
es in the future, but it would align the
statutes of the European Stability
Mechanism more closely with IMF rules,
creating a more-level playing field for pri-
vate buyers of Eurozone sovereign debt.
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
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Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
City vacancies
tumble again
CITY vacancies shrank by 16 per cent
in November, with candidates facing
the toughest competition for years.
There are now five qualified candi-
dates for every available post, accord-
ing to figures published by financial
services recruitment firm Astbury
Marsden today.
The firm said the ratio of candidates
to vacancies is at its highest since
December 2008, compared to at the
start of this year when there were just
1.7 candidates per job.
Mark Cameron, operations chief at
Astbury Marsden said: For those City
staff who are looking for a new job it
means they are being pitted against
more intense competition then they
may have faced for years.
The firm estimates that 2,670 jobs
were created in November, compared
to 3,160 in October.
The fall continues a trend from the
previous month, with Octobers figure
18 per cent down from Septembers.
However, the City figures buck a
more positive trend across the rest of
the UK, according to recruitment
group Reeds latest job index.
The companys benchmark index
rose four points to 133 in November to
reach its highest level in 23 months,
with employer demand for new staff
20 per cent higher than the same time
last year.

NICK Clegg, the deputy Prime

Minister, yesterday said the govern-
ment was prepared to introduce new
legislation that could force listed
firms to change the way they deter-
mine pay awards for top executives.
Clegg said the government would
publish a set of proposals in January,
adding it was willing to introduce
new laws that could force firms to
put a rank-and-file employee on their
remuneration committees.
We now need to get tough on...
remuneration of executives in the pri-
vate sector, Clegg said.
However, he insisted that the gov-
ernment had no intention of setting
pay at publicly-listed firms.
Employers organisation the CBI
has said top pay should be more close-
ly linked to performance, although it
has called on the government to
enforce any new rules using a com-
ply or explain code rather than pass-
ing new laws.

Clegg targets CEO pay

Nick Clegg said the coalition would get tough on executive pay Picture: Laura Lean / CITY A.M.
Competition for City
jobs is fierce, with five
candidates for every
vacancy compared to
1.7 earlier this year
Sterling corporate bond issuance is
soaring, but euro-denominated bond
sales are at a six-year low as more
companies turn to the relative stabili-
ty of the London market amid
Europes financial turmoil. UK and
international companies have sold
more than $42bn worth of sterling-
denominated bonds so far this year.
Businesses breaching European
Union privacy rules will face fines of
up to five per cent of their global
turnover under sweeping proposals
to be unveiled next month. In the
first significant update of data protec-
tion legislation since 1995, compa-
nies found to have mishandled any
personal data they hold will face the
highest levels of fines, which could
extend to billions of euros for large
Banks face paying more to raise
finance in traditional bond markets
and some will continue to be locked
out completely as a growing
demand for collateral from other
lenders is undermining the strength
of their balance sheets, the Bank of
England has warned. The UK central
bank said that the issue of secured
lending to banks is of growing con-
cern to regulators and markets.
Cynthia Carroll, chief executive of
Anglo American, is under pressure to
resolve a row in Chile or risk the
wrath of a significant number of lead-
ing shareholders, who will demand
changes at the top of the mining
group unless the dispute is settled
quickly, according to people familiar
with the situation.
The financial media organisation
wants to erect one of the Citys most
significant buildings within yards of
the Bank of England on a site it has
called Bloomberg Square. The pro-
posed scheme is in an archaeological-
ly rich area of the City and will be
home to a reconstructed Temple of
Mithras, which was uncovered at the
site in 1954.
The Barclay brothers are poised to
make a cash injection of about
130m into the Maybourne Hotel
Group as part of their campaign to
win outright control of the Claridges
and Connaught operator. Sir David
and Sir Frederick will put a proposal
to this weeks board meeting to raise
200m of new equity.
Plea bargaining to settle serious finan-
cial crimes could be introduced as
early as next year according to politi-
cians and leading legal experts.
Research by The Daily Telegraph has
shown leading City law firms and
Government Ministers are looking at
new rules on deferred prosecution
agreements to be introduced in the
next session of Parliament in May.
The taxpayer could end up meeting
almost a third of the cost of a 250m
contract designed to save the
Bombardier trainmaking plant.
Provision has been made for the
Government to contribute 80m
towards the cost of 130 new carriages
on the London to Brighton line.
General Motors is working on a fix to
the battery of its Chevrolet Volt that
would eliminate the risk of a post-
crash fire and could be retrofitted
onto existing vehicles, people famil-
iar with the situation said yesterday.
The people familiar stopped short of
saying GM plans to recall existing
Volts, but such a move likely would be
necessary to repair cars already on
the road.
Altria Group will record $119m in
fourth-quarter charges stemming
from two long-running lawsuits. The
companys Philip Morris USA unit
will record a $62m pre-tax charge in
the quarter related to two judgments
in tobacco cases and will incur
approximately $57m in interest costs
related to the cases.
PROTESTERS from Occupy London
have won a meeting with Hector
Sants, the chief executive of the
Financial Services Authority.
Members of the group are due to
meet Sants at St Ethelburgas Tent, at
the Centre for Reconciliation and
Peace, on Bishopsgate on Wednesday.
It is part of London Connection, a
series of events on finance and ethics
initiated by Dr Richard Chartres, the
Bishop of London.
Dr Chartres and Ken Costa, the for-
mer Lazard International chairman
who is now advising the Church of
England on ethics and the City, will
also take part in the private session.
Meanwhile the protesters said they
plan to hold an Occupy Everywhere
event on 15 December to mark two
months since they set up camp out-
side St Pauls Cathedral, inspired by
Occupy Wall Street.
It comes after a US federal judge on
Friday issued a temporary restraining
order to block Oklahoma City from
forcibly ousting Occupy protesters
from a downtown park where they
have bought daily permits to stay
after hours.
Protesters argue they have a consti-
tutional right to assemble peacefully
in the park all day and night.
FSA chief agrees to meet Occupy activists
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TOUGH tax hikes and spending cuts
were announced last night as Italys
technocratic Prime Minister unveiled
his plan to get the countrys colossal
debts back under control.
The 20bn (17.2bn) fiscal package
was presented after a cabinet meeting.
The retirement age is set to rise,
income tax on the rich will be hiked
and a wealth tax on assets and proper-
ty is also to be implemented.
Unions hit out at the plans, claim-
ing they hit poorer workers and pen-
sioners disproportionately hard.
However, the government has little
choice as Italys national debt stands at
1.8 trillion or 120 per cent of GDP.
Ten-year bonds finished last week with
a yield of nearly 6.7 per cent, close to
the seven per cent danger zone that
tipped others into bailout territory.
Monti was appointed Prime
Minister to get to grips with the budg-
et and restore market confidence,
after elected politicians failed to tackle
the countrys deficit. Should Italy
require a bailout, it may well over-
whelm existing provisions for saving
indebted countries, and would bring
the Eurozone crisis to new heights.
As part of Montis reforms:
Income tax will be hiked, largely tar-
geted at higher earners;
A new wealth tax will target proper-
ty and other assets;
To be entitled to a state pension,
workers will have to contribute for a
minimum of 41 years for women and
42 for men up from 40 currently;
Inflation indexing on pensions will
be cut back.
Montis marvellous medicine

AFTER a record 588 day wait, Belgium

at last has a new Prime Minister
Socialist leader Elio Di Rupo.
The Francophone leader heads a
six-party coalition and faces major
economic and social challenges.
Europes sovereign debt crisis
appears to have spread to the former-
ly-safe core nation, as 10-year bond
yields hit record highs of 5.875 per
cent on 25 November, though they
have since declined.
The government has debts of
almost 100 per cent of GDP, and was
downgraded by ratings agency
Standard and Poors last month.
Part of the coalition agreement is
to cut the budget deficit to 2.8 per
cent of GDP in 2012,
Predecessor Yves Letermes govern-
ment fell after the Flemish liberal
party withdrew from his five-party
coalition as a result of a row over elec-
tion boundaries around Brussels.
Flemish and French-speaking par-
ties disagree frequently, and the
threat of disintegration hangs over
the country another core challenge
for Di Rupo to manage.
Belgian PM
elected after
record wait
THE euro faces a decisive week as
European Union leaders, urged on
anxiously by the US, seek agreement
on a convincing rescue plan that has
eluded them for two years.
Despite short-term market opti-
mism about a possible deal to tackle
Europes sovereign debt crisis and
underpin the survival of the single
currency, the outcome is far from
certain as the EU gears up for a sum-
mit in Brussels on Thursday and
This week, the stable future of
the euro and thus the economic
recovery in Europe and employment
are at stake, said EU Economic and
Monetary Affairs Commissioner Olli
Rehn. This calls for a convincing
package of measures from the
European Council (summit).
Portuguese Prime Minister Pedro
Passos Coelho went further.
We have to find a response to
the crisis, he told the daily Publico.
If we dont, clearly that could repre-
sent the end of the European
If all goes according to plans
being hatched in Berlin and Paris,
the EU will have taken a step
towards fiscal union by Friday night,
agreeing on a treaty change to
anchor coercive budget discipline
for the 17-nation currency area.
The European Central Bank will
have cut interest rates on Thursday
to counter a looming recession and
taken new measures to provide
longer-term funding for Europes
teetering banks.
And new prime ministers in Italy,
Greece and Spain will have demon-
strated their commitment to tough
austerity measures and structural
economic reforms to tackle their
debt problems and restore investor
EU summit
crucial for
euro rescue
IRISH Prime Minister Enda Kenny set
out a raft of tough new austerity meas-
ures in his Budget address yesterday,
pledging to cut spending and raise
taxes to bring down the nations huge
Setting out the challenge of restor-
ing Irelands economy, Kenny said the
government was still spending 16bn
(13.7bn) per year more than it raised
and would need to cut 2.2bn from
spending, and raise 1.6bn in extra
taxes, to rein in the deficit to three per
cent of GDP by 2015.
This problem will not be fixed
unless we take action to bridge this
gap, he said. This budget will be
tough it has to be.
Belt-tightening measures include a
two percentage point increase in VAT,
to 23 per cent, and further cuts to the
education and welfare budgets.
More austerity in Ireland

Monti plans tax rises Picture: REUTERS




New PM Di Rupo Picture: REUTERS

JOHN Lewis, Britains biggest depart-
ment store group, said sales rose 9.6
per cent last week, with the increase
flattered by snow disruption a year
The employee-owned group, seen as
a retail bellwether, said yesterday
department store sales rose to
113.6m in the week to 3 December.
While the figures were flattered
by the snow which caused disruption
to trade this time last year, sales were
up 10.9 per cent on the same week
two years ago, indicating a robust
underlying trading performance,
John Lewis said.
TODAYS Cyber Monday is set to be the
years busiest online Christmas shop-
ping day, beating last year by 15 per
cent, with retail websites expected to
receive 85m hits as the festive frenzy
picks up pace.
Encouraged by the nearing big day
and last weeks November pay packet,
while leaving enough time for parcel
deliveries, Brits will today tot up a
hefty portion of the 350m hours they
are expected to clock up shopping
online this month.
A Deloitte report estimates that
9bn will be spent online this holiday
season, accounting for half of all non-
food related merchandise retail sales.
Of this, 20 per cent will be multi-
channel, where consumers use more
than one channel in making their pur-
chase, including smartphone apps,
price comparison websites, review
forums and social media.
Colin Jeffrey, head of multichannel
retail at Deloitte, said, With trust in
traditional sources of influence
decreasing, consumers are turning to
their peers or communities online for
advice and to share information and
The current economic climate is
accelerating the rate at which con-
sumers are adopting digital behav-
iours as they rebalance their spending
and turn to digital solutions to seek
out savings and value.
While the ever-increasing domi-
nance of social media is expected to
cost the consumer more, with multi-
channel consumers spending 143 per
transaction compared with 102 for
direct shoppers and 57 for in-store
customers, it could also lead to a high-
er gift success rate.
Last year an estimated 650m worth
of unwanted Christmas presents were
listed on eBay by 500,000 unhappy
recipients within days of being
exchanged. However, Anton Gething,
co-founder of social commerce expert
nToklo, believes social media could
make for higher customer approval
and retention rates, while also making
the consumer experience more fun
and a little less stressful.
This could be a Christmas win for
the often maligned retail industry, as
well as gift givers and receivers across
the UK.
Social media
to help Cyber
Monday grow
HIGH street trading is in a worse state
today than it was in the tumultuous
period after Lehman Brothers
declared bankruptcy three years ago,
an Ernst & Young report has revealed.
Eighteen per cent of general retail-
ers, excluding food and drug vendors,
have issued profit warnings since the
beginning of October, up from 14 per
cent in the same period in 2008,
which saw Woolworths and Zavvi
wave farewell to the high street.
The ten bleak-prospected retailers
include Mothercare, Thorntons, and
French Connection, said E&Y.
Alan Hudson, head of E&Ys restruc-
turing practice, was not confident of
prospects improving in the new year.
He said, The walking wounded left
behind will struggle to survive with
rising costs and pressure.
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High street trade is
worst since 2008
ONLINE grocer Ocado has seen the
punctuality of its deliveries slip in the
face of increasing demand.
The listed company, which sells
Waitrose goods, is understood to have
delivered 90-95 per cent of its shop-
ping early or on time in the past three
months, compared to an average
punctuality rate of 95.5 per cent in
the three months to 7 August.
Ocado, which admits it is facing
capacity problems at its Hatfield dis-
tribution centre during busy periods,
said it 90 per cent plus punctuality
rate still beats the average supermar-
ket punctuality rate of 80 per cent.
Ocado running
late more often
John Lewis sales
up almost 10pc




Retailers such
as Woolworths
collapsed in
TWO exit polls have shown that
Russian Prime Minister Vladimir
Putins ruling party suffered a big
decline in support in a parliamen-
tary election yesterday, winning less
than half of votes cast.
According to the poll from state
pollster VTsIOM, Putins United
Russia party won 48.5 per cent of the
vote followed by the Communists
with 19.8 per cent, LDPR with 11.4
per cent and Just Russia with 12.8
per cent.
An exit poll by FOM shown on
state television showed United
Russia won 46 per cent, a result
which the pollster projected would
give the party just 220 of the 450
State Duma seats, far below the 315
seats it won in the last election in
If confirmed, the result is a consid-
erable blow to Putin because the
election was widely seen as a test of
his personal authority before his
planned return to the presidency
next year.
We are watching and hope that
we shall get a majority of the man-
dates in the Duma, Boris Gryzlov,
head of the partys supreme council,
told reporters. We can say that
United Russia remains the ruling
GLOBAL businesses face increasing
volatility in 2012, as weak economic
performance and declining prosperi-
ty continue to aggravate tension and
increase scrutiny on corporate prac-
With growth prospects hampered
by ongoing debt and political crises
across the world and social unrest
likely to continue as food and fuel
costs increase, international business-
es will face unprecedented challenges
to remain viable, according to the lat-
est RiskMap analysis from business
risk consultancy Control Risks.
They will also come under increas-
ing pressure to be transparent and
accountable, as public hostility and
financial pressures throw a spotlight
onto corporate procedures.
The one indisputable lesson from
2011 is that planning for low-proba-
bility but high-impact events must be
part of any strategic forecast, said
Richard Fenning, chief executive of
Control Risks.
The research also suggest that the
growing wave of social protest that
has swept certain regions is unlikely
to subside, as tensions aggravated by
austerity programmes and political
unrest intensify.
Tunisia, Egypt and Libya in particu-
lar begin 2012 facing highly contested
futures, while ongoing protests in
Syria and Yemen could escalate into
more violent situations.
Despite the long list of threats,
Control Risks has also identified sev-
eral countries that offer the best
opportunities for investment in the
coming year, including Bulgaria and
The latter is seen as a source of
financing for wide-ranging recon-
struction through sovereign wealth
fund and oil revenues, while the for-
mer is feted for its low budget deficit
and strong links to the EU.
Colombia, Mozambique and Sri
Lanka are also seen as key countries
for investors to monitor, offering new
opportunities for development in
regions ripe for long-term invest-
Despite an expectation that export-
heavy economies in Asia will suffer
from turmoil in Western markets,
2012 will see Asias role as the engine
of global economic growth continue,
according to the report.
Volatility will
continue for
firms in 2012
Blow to Putin as exit polls show
support for United Russia falling


engulfed in flames
after he was hit by
a petrol bomb
thrown by protest-
ers during clashes
near the parlia-
ment building in
Syntagma square
in Athens. Crowds
gathered in the
square over the
weekend to protest
against the latest
round of Greek aus-
terity plans, as
Prime Minister
Lucas Papademos
insisted he would
press ahead with
planned spending
Picture: REUTERS


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IAIN Duncan Smith, the welfare
secretary, yesterday admitted
that the Treasury had discour-
aged people from working, after
it increased out-of-work benefits
in line with inflation while freez-
ing various tax credits for those
in employment.
Duncan Smiths comments
came after George Osborne
used his Autumn Statement
to freeze the working
tax credit and to can-
cel plans to hike the
child tax credit,
while increasing
out-of-work bene-
fits in line with
Septembers CPI figure of 5.2 per
He said: Work will still pay
better than benefits on the bal-
ance of things but the differen-
tial has been slightly reduced by
that, we recognise that.
However, the welfare secre-
tary insisted that the disincen-
tive would be removed
when he introduces a
new Universal Credit in
Liam Byrne, the shadow
welfare secretary, said
the government had
broken the cardi-
nal rule of welfare
reform that work
should always

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Duncan Smith admits hike in
benefits will discourage work
THE policies unveiled in George
Osbornes Autumn Statement
are unlikely to boost growth,
according to the City A.M. /
PoliticsHome.com Voice of the
City panel.
Some fifty-seven per cent of
panellists said they were scepti-
cal that the measures would
boost growth, compared to 19
per cent who said they were
somewhat confident and just
one per cent who said they were
very confident.
The most popular measure
was a decision to cap public sec-
tor pay rises at one per cent
from 2013, with 83 per cent of
panellists saying they were
favourable to the policy.
The least popular measure
was Osbornes decision to freeze
capital gains tax exemptions,
which had been expected to rise
in line with inflation. Twenty-
five per cent said they were
unfavourable to this policy,
although a similar amount said
they were favourable.
PoliticsHome.com PoliticsHome.com
Will Osbornes Autumn Statement boost growth?
Somewhat confident
Neither confident nor sceptical
Somewhat sceptical
Very sceptical
Very confident
Dont know
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com

In partnership
City says Osbornes Autumn
Statement wont boost GDP
How favourable are you to George Osbornes Autumn Statement?
Very favourable
Somewhat favourable
Neither favourable
nor unfavourable
Somewhat unfavourable
Very unfavourable
Dont know
sector pay
rises at 1 %
for individuals
instart ups
gains tax
MORE government spending
would create extra government
debt and not more growth,
according to research published
today by the Institute for
Economic Affairs.
Comparisons to the Great
Depression are ill-founded, the
report argues, as current levels of
government spending are now far
higher than in the 1930s meaning
looser fiscal policy would have
even less effect today.
The report claims that growth
took off four years into the
Depression, and full capacity was
reached within another four, all
during a period of fiscal austerity.
With much higher levels of
government borrowing, there is
no realistic possibility of such a
positive outcome today, the
report warns.
The reports modelling indi-
cates more spending in the 1930s
would have had little impact.
State spending currently
accounts for over half of our
national income and our budget
deficit sits at 165bn to suggest
that our economic woes can be
solved by further borrowing is
wrong, said Professor Phillip
Booth from the IEA.
With a sovereign debt crisis
currently raging, the government
must hold the course on fiscal
austerity and be far bolder with
supply-side reform.

IEA: Plan B would result in

extra debts but no growth
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THE City regulators report into the
collapse of Royal Bank of Scotland is
set to spare Sir Fred Goodwin and Sir
Tom McKillop any detailed criticism
when it is published next week.
The results of the Financial
Services Authority probe, due to be
published next Monday after a series
of delays, are expected to avoid a full
analysis of the work of the former
chief executive and chairman and to
focus on Johnny Cameron, the ex-
head of investment banking, who has
been banned from any full-time work
in the City.
The report is also expected to high-
light the global financial crisis and
the 71bn (then 49bn) takeover of
ABN Amro, by RBS and two other
banks, as major contributors to why
RBS needed a 45bn taxpayer bailout
and billions more in state-backed
loans. A let-off for Goodwin, howev-
er, is likely to provoke the fury of MPs.
The FSA said it would not give a
running commentary in the run-up
to the reports publication. RBS
declined to comment.
Goodwin set
to be spared
in FSA report
PRIVATE equity house JC Flowers has
built a 1.5bn cash pile to spend on
British banks mortgage books after
failing in its attempt to buy part of
Northern Rock.
The US buyout giant, which focuses
on financial services, is believed to
have changed its strategy after losing
out to Virgin Money in the bidding
war for the good bank of the Rock
last month.
Founder Christopher Flowers, once
a rising star of Wall Street in charge of
the financial institutions group at
Goldman Sachs, last month said he
was keeping a a lot of cash on hand
to weather global market turmoil and
to stay ready for buyout opportunities.
JC Flowers, which declined to com-
ment, could buy assets worth hun-
dreds of millions of pounds and
transfer them into OneSavings, the
venture it formed when it put 50m
into Kent Reliance Building Society.
It has reportedly held discussions
with a number of banks already.
Britains high street lenders are
looking to sell off books of mortgages
in order to boost capital ratios because
of tougher regulatory demands and
fears that a break-up of the euro
would unleash a new round of tur-
Flowers investments over the global
financial crisis have reduced the size
of his third $7bn (4.49bn) fund and
the group recently took a hit on the
MF Global Holdings crisis, after the
commodities broker filed for bank-
ruptcy protection.
The collapse of futures broker MF
Global cost New York-based Flowers
nearly $50m.
Australias UGL acquires
DTZ Holdings for 77.5m
AUSTRALIAN engineering firm UGL
said overnight it had acquired all the
trading operations of real estate servic-
es company DTZ Holdings for 77.5m.
DTZ was placed into administration
in the UK immediately prior to the
In a statement, UGL said that, after
the buyout, it will have combined
annual revenues of A$5.1bn (3.4bn)
and 53,000 workers in 43 countries.
It will also expand UGLs reach into
Asian markets, where DTZ has held a
top position in property services.
DTZ, which was founded in the UK
in 1784, will also boost UGL in the field
of property valuation. DTZ was ranked
top for valuations in China, and in the
top three in the UK and European mar-
kets. UGL also praised DTZs A$10bn
real estate assets under management.
UGL managing director and chief
executive Richard Leupen said the deal
would be fully funded from new debt
facilities. Goldman Sachs was exclu-
sive advisor on the acquisition.
The deal appears a relative bargain
for UGL, after another deal with Saint
George Participations and BNP
Paribas, that reportedly valued DTZ at
162m, fell through due to Eurozone
economic turmoil. Shares in DTZ fell
as low as 3p last week, having started
the year worth 45p each.
JC Flowers eyes up 1.5bn of
deals for UK mortgage books



Sir Fred Goodwin was vilified in the aftermath of the banking crisis Picture: REX
Daniels bonus could be slashed
Lloyds Banking Group could withhold up
to half the 2010 bonus awarded to for-
mer chief executive Eric Daniels.
Lawyers for Lloyds remuneration com-
mittee have told Daniels and other sen-
ior executives that the bank plans to
withhold some of the bonuses
announced in February. The claw back
comes after Lloyds made a 3.2bn provi-
sion against complaints relating to the
mis-selling of payment protection insur-
ance. The taxpayer-backed bank said
the implications on compensation are
being considered by the remuneration
committee and will be determined by
the board in due course, in line with the
FSA code on compensation.
SFO boss calls for prosecutions
Financial institutions and individuals
should be subject to criminal prosecu-
tion for the kind of "reckless" behaviour
that contributed to the financial crisis,
the outgoing director of the Serious
Fraud Office told the Sunday Telegraph.
Richard Alderman said: "What I am
thinking of is some kind of offence of
being involved with recklessly running or
being involved in the running of a finan-
cial institution. We are thinking about
banks, CDOs. I have been pushing this to
MPs. Alderman bemoaned the fact that
under existing rules it is almost impossi-
ble for the SFO to bring criminal charges
against an institution, unless it can prove
a directing mind such as the chief
executive was involved.
29Nov 28Nov 30Nov 1 Dec 2Dec
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SAP, the largest business-manage-
ment software provider, on
Saturday announced a $3.4bn
(2.18bn) deal to buy SuccessFactors
in a move to extend its reach in the
cloud computing market.
The cash deal will see the US web-
based software company, which has
more than 15m subscribers across
168 countries, sold for $40 per share
a premium of 52 per cent over its
Friday closing price of $26.25.
SAP co-chief executive Bill
McDermott said that this deal will
help SAP achieve its goal of exceed-
ing 20bn (17.19bn) in sales and
reaching a profit margin of 35 per
cent in 2015.
The cloud is a core of SAPs
future growth, and the combination
of SuccessFactors leadership team
and technology with SAP will create
a cloud powerhouse, he added.
This will establish an advanced
end-to-end offering of cloud and on-
premise solutions for managing all
relevant business processes.
Cloud computing is the service
where data and processes are hosted
remotely via the internet as opposed
to being located on office premises.
German trading has seen SAP
shares gain 17 per cent this year,
valuing the company at just under
SAP said that JP Morgan had
advised it on its acquisition. Morgan
Stanley was the adviser to
SuccessFactors, a spokesman for SAP
also said.
SAP snaps up
cloud expert
in 2bn deal
Zodiak circles Twilight vendor
Entertainment One, the distributor of
the Twilight films (pictured, right) in
the UK and Canada, has been
approached by Zodiak Media Group
about a 400m reverse takeover
approach, according to reports.
Discussions are understood to be at
an early stage between the two televi-
sion production and distribution busi-
nesses, whose merger would create a
media group with about 1bn of
annual revenues.
Entertainment One has
been the subject of takeover
talk since September, when it
confirmed it is considering
a sale as part of a strategic
review of the business,
with Sony, Lionsgate
and Alliance Films
linked to initial possi-
ble bids.
Zodiak has steadily
increased its scale by
buying TV produc-
tion business RDF
Media last June, fol-
lowed by Bwark, the producer of
The Inbetweeners, this July. It is
reportedly interested in
Entertainment One as a
way of floating in a diffi-
cult market.
The company, part of
De Agostini Group,
consists of 45 produc-
tion firms with pres-
ence in 18 territories.
A spokesperson for
Entertainment One
said it did not com-
ment on speculation.


David Lloyd Leisure prepares to hire

investment bank to assess its options
GYM chain David Lloyd Leisure is
preparing to appoint an investment
bank to advise on its strategy, accord-
ing to reports.
The company, which is owned
jointly by Caird Capital, the private
equity firm whose investors include
Lloyds Banking Group, and London &
Regional, the property firm owned by
the billionaire Livingstone brothers,
held a board meeting in November to
discuss appointing an adviser.
The move is reportedly designed to
help the board assess its options and
consider potential acquisitions,
rather than to engineer a sale.
It is understood David Lloyd is plan-
ning to add new clubs to the chain of
79 centres it operates in Britain, and
is looking for further expansion
opportunities overseas.
Lloyds Banking Group, which holds
a 30 per cent equity stake in the com-
pany through Caird Capital, is under-
stood to be fully supportive of the
business and the management.
David Lloyd was unavailable for


REAL Estate
Opportunities, the
Irish developer behind
the regeneration of
Battersea Power
Station, is resigned to
the fact that the land-
mark site will enter
administration this
week. Malaysias SP
Setia will now wait
for the lenders
Lloyds and Irelands
National Asset
Agency to seize con-
trol before making
another bid for the
debt linked to the site.
Picture: REUTERS
ANY deal between Entertainment One
and Zodiak Media would be handled by
JP Morgan and Credit Suisse, the
banks advising Entertainment One on
its strategic review.
Leading the advisory panel at JP
Morgan is Harry Hampson, the
European telecoms and media invest-
ment banking chief who acted for
Bertelsmann on the sale of its sub-
sidiary RTL Groups Channel 5 to
Richard Desmond in July 2010.
On the Credit Suisse team is
Alastair Blackman, the banks head of
media investment banking, helped by
colleagues Indy Bhattacharyya, Stuart
Field and Joe Hannon. Blackman
recently advised on the IPO of digital
sports media group Perform, which
floated 25 per cent of the business on
the London Stock Exchange.
It is expected that Zodiak would
bring Olswangs corporate partner
Chris Mackie on board, after the media
law firm advised Zodiak Media Group
on its acquisition of Bwark.
29Nov 28Nov 30Nov 1 Dec 2Dec
2 Dec
MTR CORPORATION, the company that
operates Hong Kongs metro system, is
believed to be working on plans to bid
for two more British rail franchises.
The Hong Kong group is keen to oper-
ate the c2c (Essex Thameside) and
Thameslink franchises, according to
weekend reports.
The Department for Transport is
understood to be inviting bids for the
two services before Christmas.
MTR, which has an almost perfect
punctuality record in Hong Kong, has
also improved punctuality and upgrad-
ed stations in Britain. In 2007 it won a
seven-year concession to operate the
London Overground suburban network
in a joint venture with Deutsche Bahn.
But it is likely to face stiff competition
for c2c and Thameslink, which have
steady take up because they are com-
muter lines. National Express, which
runs c2c, is expected to fight for the
franchise as it is the companys only
remaining British rail contract.
A spokesman said: As part of
National Express, c2c has delivered and
still holds both the annual and four-
week period punctuality records. We
hope to build upon this success and con-
tinue running the service after the exist-
ing franchise ends in 2013.
Thameslink is run by First Group
through First Capital Connect. It could
not be reached for comment.
Meanwhile, the fate of another
planned train line the controversial
high-speed route from London to
Birmingham is understood to have
been delayed until the New Year.
Transport secretary Justine Greening
is understood to be considering whether
a 500m tunnel should be bored to min-
imise impact on the Chiltern Hills land-
scape. She has asked for a feasibility
study to be carried out on a 1.5m tun-
nel near Amersham, as well as an envi-
ronmental probe.
The 100-mile rail link, due to be built
between 2016 and 2026, would cut the
journey between the two cities to 49
minutes. But the 32bn project has pro-
voked fury among many Tory MPs, with
Welsh secretary Cheryl Gillan reported-
ly threatening to resign.
MTR eyes two
UK rail routes
Hong Kongs MTR Corporation is keen to run the Thameslink franchise Picture: REX

CITIGROUP managing director Basil
Geoghegan proved his stamina when
he became the eighteenth Irishman
to successfully scale Mount Everest
earlier this year.
But even he is no match for X
Factor judge Louis Walsh, who was
the last man standing at the Ireland
Fund of Great Britains tenth winter
ball at The Savoy on Saturday night,
organised by Geoghegan with co-
chair Zach Webb of JP Morgan.
Walsh arrived straight from film-
ing that evenings X Factor show
and was mobbed, The Capitalist
hears, by scores of bankers wives
demanding autographs.
For their children, obviously
which is also why Deutsche Banks
Tadgh Flood put in some deter-
mined bidding to secure Walshs
auction lot of two tickets to the reality
shows live final on Saturday for his
teenage daughter, contributing
2,500 towards the 75,000 raised by
the evenings live auction.
Elsewhere in the bidding, oil baron
John McKeon of oil investment shell
Niche Group parted with a healthy
sum for the flag Geoghegan hoisted
on the summit of Everest earlier this
year, while hedge fund manager Mike
Maye auctioned off a stay in his home
in the South of France.
Top of the lots, however, was a box
at Twickenham on St Patricks Day
next year to watch the Six Nations
match between England and Ireland
DSM Demolition paid 11,000 to
secure their ringside seats at the
England teams revenge match.
FRANKEL, the racehorse known as the
Usain Bolt of flat-racing (above right),
was recently valued at 100m after
remaining undefeated in nine starts.
And last Thursday, Frankels owner
Prince Khalid Abdullah of Saudi
Arabia collected three further tro-
phies for his overflowing mantlepiece
at the annual awards hosted by the
Association of Racehorse Owners:
three-year-old of the year, owner of
the year, and racehorse of the year.
Collecting the trophies on the
sheikhs behalf were Frankels trainer
Sir Henry Cecil and manager Lord
Teddy Grimthorpe, who were joined
at the Park Lane Hilton by Irish
tycoon JP McManus; Paul Roy, the for-
mer Merrill Lynch investment banker
and chair of the British Horseracing
Authority; and British Airways chair-
man Martin Broughton.
Also celebrating was Cenkos
founder Andy Stewart, whose
unbeaten racehorse Big Bucks won
the award for outstanding hurdler.
IT HAS been friends and family of
Jeremy King and Chris Corbin only
in the guinea pig soft launch for
their new venture The Delaunay
over the last week.
But this morning, both the restau-
rant and the reservation line are offi-
cially open for business, with good
numbers expected to turn up to see
and be seen on the sister venue to The
Wolseleys first day. True to form for
the restaurateurs known for their
publicity-shy approach, however, The
Delaunay is remaining silent on its
advance VIP guests
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The Capitalist
THIS weeks bill from Italian restaurant
Bunga Bunga was so long this column
had to cut it in half. So lets just say that
ten well-funded fund managers spent
116.50 on food when they visited the
Battersea venue for lunch, before fritter-
ing away seven times that amount on the
more interesting end of the menu. Yes,
that means the drinks: a gaudy list of
sharing cocktails the Colosseum, the
Flaming Fiat and the Horses Head with
Perrier Jouet champagne, Grey Goose
vodka and Martini prosecco. And, as a
bonus, the restaurant provides a defini-
tive translation for bunga bunga it
means, apparently: Can I show you the
private room upstairs? Berlusconi
would approve.
Italian Stallion
Ruby Lovers
S Tricolore
5 Scoop
Flaming Fiat
Horses Head
The Bung Bunga
8 Bellini
Perrier Jouet
Martini Prosecco
Campari Spritz
Grey Goose
Xmas Special

57 No


Service Charge


Ball host Graham Norton (centre) with Ireland Fund co-chairmen Zach Webb of JP Morgan (left) and Basil Geoghegan of Citigroup
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RUSSIAs presence on the UKs top
share index will go up this Wednesday
if two of its newly London-listed met-
als and mining groups are admitted
in the quarterly changeover of its con-
Evraz, the steelmaking group part-
owned by Chelsea owner Roman
Abramovitch, and Polymetal, Russias
biggest silver producer, have each
swapped their global depositary
receipt listing for shares on the
London Stock Exchanges main mar-
ket and applied to join the FTSE 100.
If given the green light by the FTSE
committee at its quarterly review on
Wednesday, both groups will join the
benchmark index despite vocal oppo-
sition from some fund managers con-
cerned about the level of say that
minority investors would have in the
oligarch-controlled groups.
Only Polymetal is making a full 50
per cent of its shares public, meeting
the condition for foreign-domiciled
groups, while Evraz has re-domiciled
its business to a holding company in
the UK and is listing with just a 23 per
cent free float.
Kazakh mining group Eurasian
Natural Resources Corporation
(ENRC), which was accepted into the
FTSE 100 after floating with an 18 per
cent free float in 2007, caused
headaches for investors this summer
when four of its board members quit
after voicing corporate governance
But the addition of more high
growth emerging markets resources
companies has been cheered by other
fund managers happy to invest in
firms that deliver high returns and
comply with the UKs stringent corpo-
rate governance regime.
A third company, Irish building
materials maker CRH, will also be
admitted to the FTSE 100 pending the
meetings outcome, while South
African miner Lonmin and asset man-
ager Investec, and satellite maker
Inmarsat, are likely to be shunted out.
Russia miners
to add weight
to bluechips

HEDGE funds substantially increased

their short positions on engineering
company Weir Group in November
after the company disappointed
investors with its trading update mid-
month, new data from Data
Explorers shows.
Short interest in Weir Group, meas-
ured by the percentage of its shares
borrowed by investors, has doubled in
the past two months to 7.14 per cent.
But its share price has gained 51 per
cent over the same period in spite of
falling markets, leaving short
investors out of pocket.
Retailers have also been targeted by
short sellers, with Next seeing loaned
shares increase to 9.02 per cent from
7.71 per cent in September, and M&S
loaned shares rising slightly to 4.11
per cent from 3.93 per cent.
Short interest across the FTSE 100
is down slightly, to 1.3 per cent from
1.4 per cent in September.
South African asset manager
Investec has seen high short interest
since the end of August and this
remains high ahead of it being rele-
gated to the FTSE 250 this week.
Miner Lonmin, also due to be
moved out of the FTSE 100, has seen
short interest rise to 4.66 per cent
from 3.88 per cent in September.
Short sellers eye Weir Group
and retailers in the FTSE 100

29Nov 28Nov 30Nov 1 Dec 2Dec
2 Dec
Russian IPOs have provoked serious
debate, but they make great returns
HACKLES may be raised at some City
institutions after this quarters FTSE
reshuffle as the UKs top blue-chip
index is filled with yet more emerg-
ing markets miners.
Adding two Russian metals play-
ers to the FTSE 100 has started a seri-
ous debate over how much share
capital a firm must float to give
minority investors a valid voice; and
how many more groups dominated
by a few foreign investors we should
bring into the realm of passive
index-linked UK funds.
But these groups may not be such
a problem. The success of many oth-
ers shows huge investor appetite for
access to the worlds least-developed
resources. These groups deliver envi-
able returns and their GDR listings
have been reliable for years. They will
still sit under the UKs governance
regime. So despite the misgivings,
until we produce more mining offer-
ings of our own, the big growth will
come from these.
Analysis by Alison Lock
1 Next 9.02
2 Weir Group 7.14
3 Lonmin 4.66
4 Capita 4.59
5 Marks & Spencer 4.11
6 Investec 3.75
7 IAG 3.39
8 Aggreko 3.21
9 International Power 3.11
10 Serco 2.94
Source: Data Explorers
FORMER pizza magnate Herman Cain
dropped out of the US presidential
race during the weekend after accusa-
tions of sexual misconduct over-
whelmed his bid to win the
Republican nomination as an anti-
Washington tax reformer.
Cains departure set off a competi-
tion among other candidates to win
over his conservative supporters with
voting to start next month in the race
to determine the Republicans presi-
dential pick for 2012 to oppose
President Barack Obama.
Cain, a former Godfathers Pizza
chief executive, told followers in his
hometown of Atlanta that false and
unproved sexual accusations had
forced him to suspend his White
House bid.
He said he would endorse another
candidate, effectively ending a roller-
coaster campaign that saw the
African-American businessman go
from complete outsider to the rising
star of Republican conservatives with-
in a few weeks over the autumn.
Cain held a Friday night meeting
with his wife, Gloria, who has stayed
mostly silent as several women
accused her husband of sexual harass-
ment and an Atlanta businesswoman
said last week she had carried out a 13-
year affair with him.
Gloria Cain appeared at his side on
Saturday and smiled throughout his
exit speech.
Following Cains departure, Newt
Gingrich now commands a strong
lead in Iowa in the race to become
Republican presidential candidate.
According to a new poll, published
on Saturday, exactly one month
before Iowans become the first in the
US to choose their preferred candi-
date, the Des Moines Register found
that Gingrich had the support of 25
per cent of likely Republican voters.
The former speaker of the House of
Representatives was seven points
ahead of the libertarian Ron Paul.
Mitt Romney who had 22 per cent
of the vote a month ago has now fall-
en into third place with a 16 per cent
Cain drops US
president race
Godfather Pizza boss Herman Cain has faced sexual misconduct allegations Picture: REUTERS

RISING inflation expectations and
lower corporate bond yields helped
to push up pension deficits at the
UKs biggest companies to the high-
est level seen this year, new data
today shows.
The funding gap in defined bene-
fit schemes for all companies in the
FTSE 350 rose to 80bn at the end of
November, up by 25 per cent in only
one month from the end of
October, Mercer said in its Pensions
Risk Survey.
The corporate pension schemes
had gross liabilities of 553bn at
the end of November, made larger
as the corporate bonds they bought
to discount the liabilities delivered
lower than expected yields.
At the same time, asset values
increased only slightly due to high-
er bond prices, and gains were held
back by a fall in stock markets in
the UK and abroad.
The shortfall shows companies
on average had 86 per cent of their
liabilities funded, down from 89
per cent a month ago and from 88
per cent at the end of last year.
Mercer senior partner Ali Tayyebi
said funding levels fell as much as
six per cent during November as
volatility soared during the month.
We are beginning to see the bad
economic news catch up on the
accounting numbers, which had so
far been relatively protected in the
midst of the general economic tur-
moil, he said.
If 30 November conditions are
mirrored at 31 December then
many companies will be seeing an
increased deficit on their balance
sheet at the year end.
Tayyebi said demand for UK gov-
ernment bonds as a safe haven
from the Eurozone crisis was creat-
ing a relentless fall in gilt yields,
which when combined with quanti-
tative easing, was bringing down
high quality corporate bond yields.
Mercer partner Adrian
Hartshorn said firms were trying
increasingly non-traditional strate-
gies to try to reduce long-term risk.
Companies and pension scheme
trustees are looking at scenario
analysis to help them plan actions
for those scenarios which they are
most worried about, he said.
Shortfalls in benefit
plans hit new highs

AVIVA, the UKs biggest insurer, is

considering selling off part of its
portfolio of UK annuities to
strengthen its balance sheet after a
fall in its regulatory capital surplus
due to volatile stock and bond mar-
kets over recent months.
Aviva is the UKs biggest provider
of individual annuities with a 23
per cent market share, but may sell
off part of the book for a cash pay-
ment to shore up its IGD regulato-
ry capital, which fell to 2.7bn by
the end of September from 4bn at
the end of June, the Telegraph said.
The insurer has a huge presence
in Europe and has had larger hold-
ings of Eurozone sovereign bonds
than many of its peers, causing its
share price to be hammered over
recent months on fears for the sta-
bility of the region.
A spokesperson for Aviva
declined to comment on the possi-
ble sale, but said: As with any
insurer, we regularly look at vari-
ous options to optimise our capital
position such as re-insurance and
The sell-off is one of several
strategies Aviva has under consid-
eration, as it seeks to make its posi-
tion stronger and safer.
Aviva mulls selling off part of UK
annuity book to bolster capital base

Airbus deal scuppers 800 jobs
Engineering firm GKNs plan to create
800 jobs in Bristol has been scuppered
after it lost a contract to build parts for a
new Airbus jet. GKN had been favourite
to win the contract to make wing compo-
nents for Airbuss revamped A320 at its
Filton plant. But despite frantic last-
minute talks between GKN and Airbus,
the deal now looks likely to go to Korean
Aerospace Industries.
Dyson warns China over patents
Billionaire inventor Sir James Dyson has
warned China that it risks being expelled
from the World Trade Organisation
(WTO) over copyright breaches including
rip-offs of his famed inventions. The
inventor of the Dyson vacuum cleaner
and blade hand dryer is a member of the
Prime Minister's business advisory group.
He issued the warning as executives at
the company he founded prepare to raise
their concerns this week at an intellectual
property (IP) symposium brokered by the
Chinese and British governments.
Former Tesco boss cuts till rolls
Lord MacLaurin, the former chief execu-
tive and chairman of Tesco, is investing in
a British start-up championing paper-less
receipts. MacLaurin, who helped pioneer
Tescos Clubcard, is backing Paperless
Receipts, which sends digital receipts to
personalised websites.
Lord Hutton says there may need to be further cuts to public sector pensions Picture: REX
THE government could have to make
further cuts to public sector pensions
because the outlook for the British
economy has worsened, Lord Hutton,
the former Labour minister, warned
Hutton, who was work and pen-
sions secretary in Gordon Browns
government, said the calculations
contained in his recently-published
review of public sector pensions now
appeared too optimistic.
The ground underneath [my] esti-
mates has changed radically and Im
afraid in the wrong direction so we
cannot be sure that the costs will fall
over time and that we get to a more
sustainable balance.
He added: The events of the last
couple of weeks have confirmed that
change is going to be the order of the
day now, if were going to remain
competitive, successful as an econo-
We could be heading for the rocks
unless we make adjustments now.
But Brian Strutton, the national
secretary of the GMB trade union,
said Hutton was only considering
one side of the equation.
He added: What hes forgotten to
look at is the government also
announced an atrocious 710,000 job
losses in the public sector and a fur-
ther two years of pay restraint.
Thats going to bring down the
long-term cost of public sector pen-
sions, and therefore I think Huttons
own affordability test is still going to
be met in the long-term.
Hundreds of thousands of public
sector workers staged a strike at the
changes to their pensions last week.
Reform of pensions
may be insufficient,
warns Lord Hutton

Adidas Olympic mentions by category

Regional News
National News
6% 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 23
November to Wednesday 30 November.
Criticism of Dow from
the likes of Ken
Livingstone has brought
it up the rankings for all
the wrong reasons.
Meanwhile, Adidas has picked up strong
positive mentions over the past week.
There has been a warm reception of the
news that Adidas has extended its sponsor-
ship deal with the British Olympic
Association beyond London 2012 until Rio
2016 and also for the launch of an exclusive
edition of trainers to raise funds for British
athletes. There has also been strongly posi-
tive mention regarding the Olympic
Volunteer uniforms which will be manufac-
tured by Adidas partly due to the fact that
the uniforms are to be made from recycled
fabric but also just because volunteers are
excited to receive them; all boding well for
Adidas in the run up to the Olympics.
Olympic Media Buzz
Brand Position change
Dow Chemical 18
Adidas 6
BP 3
BT -3
Samsung = 0
Visa -2
McDonald's = 0
Omega 1
Atos 10
29Nov 28Nov 30Nov 1 Dec 2Dec
2 Dec
IRAN yesterday warned the West
that any move to block its oil
exports would more than double
crude prices with devastating con-
sequences on a fragile global econo-
As soon as such an issue is raised
seriously the oil price would soar to
above $250 (160) a barrel, foreign
ministry spokesman Ramin
Mehmanparast (pictured below) said
in a newspaper interview.
The comments come as Iran strives
to contain international reac-
tion to the storming of the
British embassy last week,
a move which drew
immediate condemna-
tion from around the
world and may galvanise
support for tougher action
against Tehran.
Washington and EU countries
were already discussing measures to
restrict oil exports after the United
Nations nuclear watchdog issued a
report in November with what it said
was evidence that Tehran had
worked on designing an atom bomb.
Iran claims its nuclear programme is
entirely peaceful.
The US Senate voted on Thursday
to penalise foreign financial institu-
tions that do business with Irans
central bank, which takes payment
for the 2.6m barrels Iran exports a
day. The European Union is consider-
ing a ban already in place in the
United States on Iranian oil
So far neither Washington nor
Brussels has finalised its move
against the oil trade or the central
bank amid fears of the possible
impact on the global economy of
restricting oil flows from the
worlds fifth biggest exporter.
But the British
embassy attack
dragged relations
with Europe to a
long-time low and
Iran is now facing
rising rhetoric
about a direct
hit on its main
source of for-
eign earnings.
Iran: oil price
could soar to

ROYAL Dutch Shell signed a deal with

Qatar yesterday to develop a $6.4bn
(4.1bn) petrochemicals complex in
Ras Laffan in the Gulf Arab state.
Qatars energy minister,
Mohammed al-Sada, and Shells chief
executive Peter Voser signed the heads
of agreement in the Qatari capital
The deal is the latest in a series of
Middle East agreements for Shells
Voser, who is on a tour of the region.
Last week, Iraq signed a final $17bn
deal with Royal Dutch Shell and
Mitsubishi 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
firms, is meant to help harness more
than 700m cubic feet per day of gas.
Shell signs deal to develop 4bn
petrochemical complex in Qatar

Petrol congress meets amid Middle East unrest
Petroleum Congress kicks off in
the Qatari capital of Doha this
week, aiming to boost dialogue
among stakeholders in the petroleum
industry and beyond. It is the first
time the triennial event has ever been
held in the Middle East. It could not
have come to the region at a more cru-
cial time.
The momentum of the Arab Spring
still engulfs the region, and disrup-
tions in oil supply became very real in
Libya. Regardless of how swift a return
to pre-conflict levels of production will
be, doubts about Opecs spare capacity
in particular have exacerbated supply
With Syria entrenched in de-facto
civil war, and Western powers ramping
up the rhetoric on Iran, the prospect of
a broader regional conflict has many
investors concerned about where oil
prices, now above $100 a barrel, are
headed. The Middle East is home to
many of Opecs heavyweights and the
Strait of Hormuz, a critical choke-
point. More than 15m barrels per day
of crude oil go through the waterway,
some 17 per cent of the worlds oil
A multitude of issues will be dis-
cussed over the course of the five day
event here in Doha. Topics such as the
impact of conflict and territorial dis-
putes, to what constitutes a fair price
for oil and gas are on the agenda.
Most Opec members, especially in
the Gulf, shy away from endorsing lev-
els above $100 per barrel out of fear of
demand destruction and a global
economy still struggling to stay on its
Energy demand though remains
elevated with the IEA forecasting glob-
al oil demand to grow by 1.3m barrels
per day in 2012.
So attracting investments for the
industry in such a climate raises the
stakes for various players ranging from
state-owned oil groups to the major
independent oil companies. And as
much as fossil fuels may continue to
dominate the worlds energy mix or a
few years to come, dialogue in Doha
will also focus on the alternative
sources of energy.
Qatar is the worlds biggest natural
gas exporter, and also boasts one of the
fastest growing economies. The IMF
forecasts 2011 GDP growth at 18.7 per
cent. Unlike several of its Arab counter-
parts, Qatar has been able to avoid
domestic turmoil. The country, rated
AA by credit rating agencies, success-
fully raised $5bn recently in its first
sovereign bond issue in two years.
The hope in Doha therefore is that
the dialogue between the energy
industrys biggest players will translate
into a more streamlined and coordi-
nated response to the fragile economic
and geopolitical realities. At the very
least, its hoped the Congress will be a
step in that direction.
Yousef Gamal El-Din is Middle East
Correspondent for CNBC. Follow him on
Twitter @youseftv
OPTIMISM about the state of the
economy has plummeted among
Londons businesses, the
Confederation of British Industrys
(CBI) bi-yearly business prospects sur-
vey showed today.
Most firms 55 per cent cited the
threat of a double-dip recession over
the next year as their major concern.
Only 13 per cent of firms in the
capital feel more optimistic about
prospects for the economy over the
next six months.
That lowly proportion compares
with 43 per cent who felt optimistic
in June.
Hiring in London has taken a hit as
a result.
The number of companies only
hiring when essential has risen from
59 per cent in June to 64 per cent.
Twenty-three per cent of firms
have implemented recruitment
freezes, up slightly from 20 per cent
six months ago.
Its clear that London business
confidence has been knocked by the
ongoing uncertainty in the Eurozone
and weak demand and growth at
home we now need the
Government to power ahead with its
autumn statement plans to help busi-
nesses grow and create jobs, said
Sara Parker, London regional director.
However, companies do believe the
Olympics may provide a boost.
Ninety-two per cent think the
Games will benefit London interna-
tionally, and 78 per cent are looking
forward to the event.
Its good news that the majority of
the capitals companies are now
thinking about planning for the
Games, continued Parker.
The event will showcase London as
a world-leading business location,
and highlight the success of UK firms
in delivering a complex construction
and infrastructure project.
However, there is still more work
to be done over coming months to
make sure transport, staffing and
security issues are ironed out.
PRINTING more money would boost
the economy just when a stimulus is
most needed, the British Chambers of
Commerce (BCC) argued yesterday,
calling on the Bank of Englands
Monetary Policy Committee (MPC) to
announce more quantitative easing
(QE) at Thursdays meeting.
Low economic growth and further
fiscal austerity mean monetary policy
is the most important tool left to help
the recovery, the business group said.
UK monetary policy must be as
expansionary as possible to protect
our economy from adverse effects of
deficit cuts and Eurozone problems,
said BCC chief economist David Kern.
There is a strong case for the MPC
to announce a further 50bn increase
in the QE programme this week, to
Other economists disagree.
The message from the MPC seems
to be that more QE is highly probable,
but not until the New Year, said IHS
Global Insights Howard Archer.
Nonetheless, the BCC believes a sur-
prise move would maximise impact.
An early announcement would
strengthen confidence and help
counter the negative mood that has
become apparent following the grim
projections from the Office for Budget
Responsibility, Kern continued.
The BCC is also calling on the MPC
to purchase private sector assets, and
for George Osborne to accelerate the
implementation of credit easing,
which aims to help SMEs borrow.
50bn more QE now would give shock
boost to Britain, says business group
MANUFACTURING figures across
Europe are released this week, and
economists expect a gloomy outlook.
Octobers figures are expected to
show an oncoming recession in the
Eurozone and weakness in the sur-
rounding economies.
Barclays Capital predicts Italian
industrial output data out on
Thursday will be flat in the month to
October, consistent with a decline of
0.5 per cent year on year.
Spanish production is set to fall 1.8
per cent in the month, and the UK is
forecast to see a 0.3 per cent fall in
manufacturing output.
French output is expected to be up
0.1 per cent in the month, but down
one per cent annually. However,
Barclays Capital forecasts a 0.6 per cent
monthly rise in Germany, rebounding
from a 2.7 per cent drop in September.
The data should provide further
evidence the Eurozone is likely to con-
tract in the fourth quarter, said
Capital Economics Ben May.
Week aheads industrial
data likely to be gloomy

FOREIGNERS living in Egypt and

southern Europe reported the most
widespread weakening in the local
economy during the last year, accord-
ing to new research from HSBC.
Expats in Egypt (100 per cent), Spain
(97 per cent), Bahrain (94 per cent) and
Italy (88 per cent) were among those
most likely to report a deterioration,
the HSBC Expat Explorer said.
Their concerns show no sign of dis-
appearing, with nearly half of expatri-
ates living in Italy (44 per cent) and 38
per cent of those in Spain fearful for
the future, as the Eurozone crisis takes
its toll.
HSBC Expat, formerly known as
HSBC Bank International, also found,
however, that the wealth of expatri-
ates is largely immune to global eco-
nomic turmoil. Lisa Wood, head of
marketing at HSBC Expat, said: Many
expats are facing an uncertain eco-
nomic outlook in their current coun-
try. Yet, it seems despite this wider
unrest, expats remain financially shel-
tered from the turmoil.
Nearly half of foreigners living in
Britain (49 per cent) feel the economy
has worsened over the last two years
but only a quarter think it will contin-
ue to deteriorate.
Around 5.6m Britons live abroad,
according to the Institute for Public
Policy Research.
Report says expats fear economic woes

A PANEL appointed by Olympus to

probe the accounting scandal engulf-
ing the Japanese firm estimates that
Olympus hid investment losses total-
ing 130bn yen (1.1bn) at the peak of
the cover-up, a source familiar with
the investigation said.
The source said the panels report,
to be issued as early as tomorrow,
would state that former executive vice
president Hisashi Mori and ex-internal
auditor Hideo Yamada led the scheme
and informed former president
Tsuyoshi Kikukawa.
The Nikkei business daily said that
the panel was leaning towards stating
that it had found no proof that organ-
ised crime syndicates were involved in
the scheme.
The 92-year-old maker of cameras
and endoscopes is battling to remain
listed on the Tokyo Stock Exchange,
but if the panel does find involvement
of organised crime syndicates that out-
come would be difficult.
Tokyo police, prosecutors and the
Securities and Exchange Surveillance
Commission (SESC) have launched a
rare joint investigation of the scandal,
and are likely to step up their probe
after the panel report is released.
Potential criminal charges could
include filing false financial state-
ments, fraud and aggravated breach of
Olympus also needs to meet a 14
December deadline to file its financial
results for the six months to
September in order to avoid an auto-
matic delisting.
Former Olympus boss Michael
Woodford, who blew the whistle on
accounting tricks at the company after
his sacking from the top job in
October, has launched a campaign to
oust the current board and replace it
with his own team of candidates led by
him as nominated chief executive.
Olympus hid 1.1bn loss: source

Weak Europe
knocks firms
in the capital


British expats celebrate the Royal Wedding in Magaluf, Spain Picture: REX
Whistleblower: former Olympus chief Michael Woodford Picture: REUTERS
HE Eurozone will once again
serve as the source of Wall
Streets angst, as investors look
to a summit of the regions
political leaders for decisive solutions
for the ballooning debt crisis.
Stocks posted their best week in
more than two years last week, driven
by central bank efforts to provide
cheaper dollar loans to struggling
European banks.
In addition, the new head of the
European Central Bank said on
Thursday the ECB stands ready to act
more aggressively to fight Europes
debt crisis if political leaders agree to
much tighter budget controls at the 9
December summit.
But Wall Street investors can be for-
given for feeling like theyve been in
this position before. Markets see-
sawed throughout the fall, guided by
prevailing sentiment out of Europe.
It will be all focused on the
upcoming Friday summit. But dont
forget this is the 15th summit weve
had now during the Eurozone crisis,
and every time the market and then
boom -- it gets disappointed, said Ken
Polcari, of ICAP Equities in New York.
Until now, the ECB has resisted
prodding from markets and world
leaders to step in as the lender of last
resort. European credit market yields
have soared in recent weeks on con-
cerns that the Eurozone could break
up or one or more countries would
default on their debt.
French President Nicolas Sarkozy is
due to meet German chancellor
Angela Merkel today to outline joint
proposals for the summit.
Investor optimism over apparent
progress by Eurozone leaders toward
taming their debt problems helped
propel the S&P 500 7.4 per cent high-
er for the week, its best weekly per-
formance since March 2009. The best
performers in the last week were
companies with more international
sales, according to Bespoke
Investment Group, an investment
adviser in Harrison, New York.
While volatility remains high as
markets are susceptible to any nega-
tive headlines coming out of the
Eurozone, investors appear satisfied
for the time being that the regions
leaders will stay on track in tackling
the crisis.
Weve seen some policy changes
which suggest they are finally begin-
ning to understand that theyve got a
problem, said Phil Orlando, chief
equity market strategist at Federated
Investors in New York. They are final-
ly recognising that this is their
Lehman moment, and they have got
to do the same sort of things that we
did back in the 2007 to 2009 period.
With markets swings closely tied to
sentiment about the progress made
in the Eurozone, investors have been
forced to weigh the regions fiscal sta-
bility with US stocks that are seen as
cheap by many analysts.
Recent corporate outlooks and ana-
lyst projections have been painting a
less rosy picture, with estimates for
fourth-quarter S&P earnings growth
tumbling over the past two months as
well as a near-record high ratio of neg-
ative corporate preannouncements to
positive ones, according to Thomson
Reuters Proprietary Research.
Even if European leaders continue
on a path that investors have cheered,
the difficulty in putting plans in
place may throw cold water on
investor optimism. Borrowing costs in
major nations such as Italy and Spain
remain at levels considered unsus-
tainable in Europes slow-growth
EU summit the new focus as
investors waver over the euro
AST week saw an extraordinary
turnaround in equity markets.
The index bounced off 5,100 and
shot higher with barely a back-
ward glance. The FTSE 100 tacked on
more than eight per cent over the
period and on Friday it tested signifi-
cant resistance at 5,600. This marks
the 61.8 per cent Fibonacci retrace-
ment of the sell-off that we experi-
enced from May to October.
Ten days ago, most of the major
global stock indices were threatening
to break below significant support
and investor sentiment was pro-
foundly negative. Policymakers
across the Eurozone repeatedly failed
to address the escalating debt crisis,
and the core members of the curren-
cy bloc continued to argue over the
role of the ECB, the creation of
Eurozone bonds and fiscal integra-
Little appears to have changed, yet
the FTSE is now 500 points higher.
Perhaps the market was oversold.
Maybe better-than-expected US data
has helped to dispel worries of a glob-
al economic slowdown. Or could
investors view the coordinated cen-
tral bank move that cut the cost of
dollar funding as a harbinger of
greater cooperation in the future?
Whatever it was, it boosted investors
risk appetite.
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 42 points at 5,510. The German
DAX is expected to open down 31
points at 6,050 and the French CAC
40 is forecast to open down 11 points
at 3,154.
This week is a busy one on the eco-
nomic data front. Today we have
Services PMI in both the US and UK,
and Eurozone Retail Sales. Tomorrow
sees a rate decision from the Reserve
Bank of Australia. Expectations are
for another cut of 25 basis points. We
have UK Manufacturing Production
on Wednesday, and on Thursday well
hear the latest statement from the
Bank of Englands MPC. On Friday
well see inflation data from China
and the UK, and Consumer
Sentiment and Inflation
Expectations from the US.
But crucially, the week closes with
the EU Economic summit. This has
become the new focus for investors,
and there is a strong expectation that
a definitive course of action will be
agreed on by Europes leaders.
Another failure will see investors
rush to the exits.
Martin Slaney is director of global prod-
uct management at GFT
23Sep 5Sep 13Oct 2Nov 22Nov
2 Dec p
23Sep 5Sep 13Oct 2Nov 22Nov
2 Dec
Miroma Group
Miroma has hired Richard Hirst, formerly
UK senior marketing manager at
McDonalds, to lead commercial strategy
for Miroma Ventures, the companys
newly created arm for its non-corporate
barter interests. These include invest-
ment vehicle Miroma Capital and leisure
turnaround consultancy Miroma Leisure.
Lloyds Bank Corporate Markets
Howard Grubb has been appointed as
head of e-FX algorithmic trading, based
in London. Grubb joins from BNP
Paribas, where he was head of research
in electronic FX trading, and has also
worked in electronic trading at Goldman
Sachs and Barclays Capital.
M&G Investments
The investment manager has appointed
James Tomlins as fund manager for its
77m European high yield bond fund
and deputy fund manager for the 1.1bn
high yield corporate bond fund. Before
Tomlins joined M&G in June, he was
deputy fund manager of the Cazenove
strategic bond fund.
The Financial Services Authority has
appointed Paul Stockton as non -
executive director to the board of the
financial services compensation scheme.
Stockton is currently group finance
director at Rathbone Brothers.
Richard Goodall has been appointed as
managing director, global wealth servic-
es at the investment solutions outsourc-
ing provider. Goodall was most recently
sales and marketing director at
Ascentric and a board director of
Investment Funds Direct.
DLA Piper
The law firm has appointed intellectual
property specialists Melinda Upton and
Nicholas Tyacke to its partnership, mov-
ing from Blake Dawson and Clayton Utz
respectively. Both will start in early
2012, based in the firms Sydney office.
British Standards Institution
Sir David Brown has been named as
deputy chairman and chairman desig-
nate of BSI Group to succeed current
group chairman Sir David John, who
will retire on 30 March 2012. Sir David
joined the board as non-executive
director in May 2010.
+44 (0)20 7092 0053
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Compass Group
Oct Nov
p 589.50
2 Dec
Goldman Sachs rates the food and support services group as a buy and
increases its target price from 695p to 705p, as well as updating its esti-
mates. The broker expects earnings per share of 43.74p in 2012, rising to
48.99p in 2013, but sees several downside risks to both its view and price
target. These include negative foreign currency translation effects, a mate-
rial increase in price competition, and significant food cost inflation.
ANALYSIS l Kingfisher
Oct Nov
p 263.50
2 Dec
Citi rates the home improvement retailer as a buy and raises its target
price from 2.80 to 3, following strong third quarter results last week.
The broker says the forecast-beating results add credibility to the compa-
nys +10 per cent-plus earnings per share growth target to January 2014,
driven by a combination of like-for-like sales progress, cost controls and a
+50-70bp group gross margin delta per year.
Oct Nov
p 1274.00
2 Dec
JP Morgan rates the power group as underweight and raises its target
price from 1,060p to 1,205p, saying the companys defensive appeal is under-
mined by its volatile earnings stream and rising debt. The broker says SSEs
Generation and Supply business a key driver of growth from 2003-2009
is facing a challenging future at the same time that its gearing is at a record
high, and that it will likely remain cash negative until at least 2015.
The banking software provider has appoint-
ed former SAP executive Dr Bernd-Michael
Rumpf as global head of the companys cus-
tomer services group, reporting to chief
executive Guy Dubois. Bernd-Michael previ-
ously spent 12 years at SAP, where his exec-
utive roles included head of field services
and support. Prior to that, he was chief exec-
utive of SAP SI AG, before its integration
into SAP, and strategic consultant and prin-
cipal at Cap Gemini Ernst & Young.
HE recent concessions by the coalition, in
respect of the public sector pension negoti-
ations, verge on an unconditional surren-
der to the unions, perhaps on a scale
unprecedented in the history of public sector
labour negotiations. The price will be paid by
those who are not at the negotiating table: the
private sector and the young. The latter could be
summed up as simply an extension of the on-
going perpetration of generational injustice.
By agreeing to exclude those within 10 years of
retirement from any deal, as well as increasing
the pension accrual rate, the coalition has wiped
out, for the next 10 years, any scope for meaning-
ful cost savings. The only remaining benefit,
within that timeframe, will be additional
employee contributions, a mere trickle when
compared to the burgeoning cost of meeting
pensions in payment.
Four years ago the public sector pen-
sions cashflow gap (between contribu-
tions and pensions in payment) was an
insignificant 200m. In 2010-11 it was
4.3bn, and in this years March Budget
the gap was forecast to be 7.2bn in 2014-
15. Last weeks OBR report, accompany-
ing the Autumn Statement, increased
the 2014-15 forecast to 10bn (and rising
thereafter). With three-year forecasting
volatility such as this, the unions claim
of on-going affordability, based upon a 50-
year cost projection, is totally lacking in
In the meantime, the gap has to be
plugged by the Treasury; this, together with
employer contributions, leaves taxpayers
meeting at least 80 per cent of the cost of pub-
lic sector pensions. So increases in employee
contributions that are small relative to the total
cost of pensions will be of limited benefit to
the Treasury. The real economic benefits
only arise well beyond 10 years hence,
principally powered by Lord Huttons pro-
posal to link the retirement age to the
retreating State Pension Age. Helpful in
the future, but of no political value today.
Furthermore, as part of the recent conces-
sions, the acceptable range for the cost of public
sector pensions will be increased, from 17 per
cent to 21 per cent up to 20 per cent to 22 per
cent of the annual wage bill. The latter is approx-
imately 182bn; the 3 per cent increase in the
lower end of the range is 5.4bn per year.
Consider an alternative use for this state spend-
ing; it is equivalent to cutting the rate of corpora-
tion tax by 4p. Imagine the potential for
economic growth were such an initiative to be
implemented today.
There was an alternative: there are a few cash-
flow quick wins which the Treasury could have
used as far more effective bargaining counters.
The most productive would be to put an end to
contracting out of the State Second Pension
(S2P), saving some 3.9bn annually on allied
national insurance contributions rebates.
Indeed, the coalition should have started the
process of public sector pensions reform by rais-
ing the state pension to at least 140 a week. By
putting in place a bedrock of retirement income
above the means-testing threshold, the coalition
could claim to have addressed the unions legiti-
mate concerns over pensioner poverty. It could
be (more than) financed by reinvesting the ensu-
ing reduction in means-tested benefits (saving
up to 8.6bn annually) and ending higher rate
tax relief (7bn annual saving). The coalition
would then be in a stronger position to negotiate
a route map to a wholly defined contribution
based framework for public sector pensions.
To date, the unions have comprehensively out-
witted the coalition in the media war, harness-
ing to full effect the opportunities for obfusca-
tion and bamboozlement offered by the pen-
sions theme. But, paradoxically, could the
unions success, to date, ultimately be their
undoing? Such is the opacity of pensions that
few within the public sector appreciate just how
good the current offer is. By striking, public sec-
tor workers could have made a tactical error of
Scargillian proportions, a major step towards
snatching defeat from the jaws of victory. The
coalition could still just pull the current deal off
the table, and walk away. To be clear, what is on
offer is a pension that is roughly three times big-
ger than that which is typically available to a pri-
vate sector worker on the same salary.
In the interim, the unions may accept the
deal, but this could ultimately prove to be a
Pyrrhic victory, the price being even greater sub-
sequent job losses to exert some control over the
cost of future pensions. Meanwhile, the chief sec-
retary to the Treasury should reconsider his ludi-
crous comment that the proposals would
endure for at least 25 years. Over that time-
frame, no one knows how our economy will per-
form, or what the additional costs may be from
increasing life expectancy. This leaves one final
question, to the Prime Minister. He has made it
clear that the pensions offered to the public sec-
tor are far, far better than pensions in the pri-
vate sector. Why should they be?
Michael Johnson is a research fellow at the Centre
for Policy Studies.
The Forum
What is on offer is a pension
that is roughly three times
the private sector equivalent
The coalitions pension plan
is an insult to private sector
workers, not to the unions
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
Technology is at
a tipping point
banking needs to
innovate, or else
A warning from
the future: Dont
bank on old ways
OR banks, the path of lowest possible risk
is to continue doing what theyve always
done; however this would be a grave mis-
take, as Alan Hughes wrote in the Forum
last week [The challenge to banks: Who will lead on
service, Wednesday]. Not only is service impor-
tant, as Hughes argues, but with technology
shifting the way we bank, there are huge
opportunities for innovation here too.
Transforming the services banks offer can
respond to customer behaviour and rebuild
consumer trust. This has to be more than a
service that manages a weekly budget or a new
savings product with an introductory rate that
vanishes six months later. Banks need to pro-
vide a bespoke service that meets a customers
individual needs. One size fits all will simply
no longer cut it.
The way we bank is fundamentally chang-
ing: driven by the proliferation of smart-
phones, more and more customers are
accessing banking services on the move.
Developments in a number of key technolo-
gies, such as mobile banking and the digital
wallet, are converging to provide the opportu-
nity to take advantage of this shift. With con-
sumers increasingly managing their affairs on
a single device, banks can capture live, accu-
rate data on their customers and give almost
instantaneous feedback. The benefits to the
banks are clear: more data allows better profil-
ing, which leads to a better ability to predict
need, which in turn means more effective sell-
ing and greater sales opportunities.
Developing a branch in your pocket would
allow banks to simplify as well as personalise
the services providing a single account dash-
board to allow easy access to key information:
income, outgoings and transactions, as well as
charts and graphs to compare spending
month-to-month and year-to-year. This can be
adapted to meet the customers needs and
regularly adjusted to reflect savings targets,
changes in circumstances, or holiday funds.
By making real improvements to their serv-
ices based on consumer data, banks can incen-
tivise increased engagement from their
customers. The more the customer engages
with their bank, the more they will receive a
service pertinent to them, based on their own
profile and behaviour. To provide indispensa-
ble services, banks must embed themselves
into the lives of their customers so they not
only facilitate saving for a holiday, but also pro-
vide a gateway to book flights, exchange cur-
rencies and purchase travel insurance, all at
the touch of a button.
It remains to be seen whether the banks are
ready to embrace this, and bring down the bar-
riers to the services they offer in order to
rebuild consumer trust. If they arent, it is only
a matter of time before someone else steps in.
Technology giants such as Google and Apple
have been hinting at moves into the industry
for some time. Meanwhile, the UKs largest
supermarket Tesco is preparing to move into
in-store banking so it becomes the ultimate
one-stop-shop. As trusted names with a proven
record in innovation, they pose a genuine
threat to the banks position. This is a friendly
Paul-Jervis Heath is head of design for Head
UnCommons sense
As a tax-and-spend liberal who
believes in big government I am
confounded to find myself agree-
ing with Dr Tim Morgan [Theres
one economic policy the coalition
has yet to try, last Tuesday]. He
points to some truths that have
been forgotten by all parties in
this debate: growth is unlikely to
come from anywhere; the NHS
and defence are over-bureaucra-
tised; and efforts to decentralise
have been disastrous failures.
And he offers solutions. No PFI,
build rental homes and help real
working people. Its all common
sense which is why politicians
will not do it.
John Finch
Road to ruin
Your proposed road reforms
[Time to bring our roads into the
market economy, last Friday]
would be great, but I can't help
but think it would go the same
way as the railways. Prices
would keep going up each year
and no real improvement would
be seen by the customer.
Jason McCarthy
Speak your mind
Got a sharp comment?
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The Forum
RIDLOCK is often
the outcome of
public sector walk-
outs so we can be
grateful that last weeks
strikes did not, as feared,
severely impact upon
Civil servants and oth-
ers stepped in to prevent the lengthy queues and
angry scenes that would have damaged our interna-
tional reputation with both tourists and businesses.
As a world-leading business hub, London has tradi-
tionally benefited from excellent transport links to des-
tinations all over the world. This is an integral part of
our success as an international financial centre.
The investment programme outlined by the chancel-
lor in the Autumn Statement will help to deliver the
infrastructure improvements across the country need-
ed to improve growth prospects. Crossrail and the
Tube upgrade will also help to meet growing demand
over the medium term.
But our competitive edge as an international hub is
being eroded as we wait for decisive action to upgrade
our airports.
The chancellors commitment to exploring all the
options for more aviation capacity and support for a
hub airport in the South East is welcome but we now
need action to match this pledge. And if these other
options cannot deliver enough capacity in time, the
Citys view is that increased runway capacity at
Heathrow should remain on the table.
Access to aviation services is a critical requirement
for firms across the City and London as a whole. We
must rise to the challenge of increasing demand, with
passenger numbers across Londons airports forecast
to rise from 140m a year in 2010 to 400m in 2050.
Extra capacity is needed, though it may require
unpopular decisions.
The danger is that by the time progress is made
other hubs across Europe will have taken advantage of
our failure to deliver in time.
Already our ability to access key high-growth mar-
kets is becoming severely constrained. Better-connect-
ed hubs such as Paris and Frankfurt boast 1,000 more
annual flights to the three largest cities in China than
This is important because UK businesses trade 20
times as much with emerging markets that have
direct daily connections to the UK as they do with
those that do not.
We understand both the political and environmental
issues that surround aviation policy. Wherever new
airport capacity is planned there will be objections
from those likely to be affected or concerned about
the environmental impact. It is, however, surely better
to have planes parked on the ground than stacked in
the air.
London is behind the curve when compared to our
European rivals. They are already delivering increased
capacity and we need our existing hub to work far
more efficiently.
Interim measures are possible such as mixed
mode operation more intensive use of existing run-
ways. Increased runway capacity at other airports,
including Stansted and London City, would also be
welcome but Heathrow remains by some distance
our primary international gateway.
The government has pledged to show the UK is
open for business. It is time the coalition proved it by
taking control of aviation strategy and facing up to the
difficult decisions.
Stuart Fraser is policy chairman at the City of
London Corporation.
Keep a new Heathrow
runway on the table
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
HAVING condensed for 30 years in the
mind of Goichi Hosoda, a Japanese jour-
nalist, ichimoku kinko hyo which trans-
lates as one glance balanced chart
took Japanese traders by storm when it was
unveiled in 1960. Its now a stock indicator in
Japan and has a scattered following in Europe
and the US. This should only precipitate in the
coming years.
Ichimoku is a complex charting system, which
can be used as part of many trading strategies,
says Michael Hewson of CMC Markets. Although
ichimoku charts appear confusing at first sight,
using ichimoku is actually quite easy. Kathleen
Brooks of Forex.com thinks the indicators
appearance should not scare traders, as it is sim-
ply based averaging highs and lows, combining
the results on one chart.
Ichimoku uses five indicators, each of which
indicates an average or price:
1. Tenkan sen (calculated by averaging highest
high and lowest low during the last 9 days)
2. Kijun sen (calculated by averaging highest
high and lowest low during the last 26 days)
3. Chikou span (todays daily closing price pro-
jected into the past by 26 days)
4. Senkou span A (calculated by taking the aver-
age value of the sum of the tenkan sen and the
kijun sen, which is then projected 26 days into
the future)
5. Senkou span B (calculated by averaging the
highest high and the lowest low over the prior 52
days, but plotted into the future)
Hewson explains: The most distinctive fea-
ture of ichimoku is kumo (translates as cloud),
the area between senkou span A and senkou
span B this feature is given its name by the
appearance of this area when shaded. Markos
Solomou of Easy-forex notes: When green and
prices are above the cloud, this is considered an
indication that the trend is an uptrend. When
red and prices below the cloud the trend is
downtrend. When prices are in the cloud the
trend is flat. Hewson says unlike with typical
support or resistance indicators kumo has
depth, which indicates how likely it is for a price
to break through the cloud.
Ichimoku signals are generated when key lines
cross. A buy signal is triggered when the tenkan
sen crosses above the kijun sen from below,
while a sell signal is triggered when the tenkan
sen crosses below the kijun sen from above. But
as Brian Dolan of Forex.com notes in Trading
The sky is
the limit
Philip Salter gazes at Ichimoku clouds and how they can help to
forecast whether youll see rays of sunshine from the markets
HEN Victrex reports its earn-
ings on Tuesday, analysts are
expecting revenues of around
93m, up from 75m this
time last year. The maker of polymerss
shares have slid 27 per cent from their
highs in July of 1,600p, but it looks like
it is on the way back from lows of
1,020p. Strong gains and a break above
the 50 day moving average last week at
1,161p could mean there is polymore
to come. Spread Co offers a spread on
Victrex of 1,167.1p-1,170.8p.
The FTSE 100 index has broken the
back of the recent weakness and is
close to testing its 200-day moving
average again which currently sits
around the 5,650 area. Considering
the Dow Jones has broken back above
its 200-day moving average theres a
chance that the FTSE might be soon to
follow. Capital Spreads quotes 5,569.0-
5,570.0 for the UK 100 Rolling Daily.
Third quarter numbers from the
retail giant Tesco will be released on
Thursday and the impact of the recent
supermarket price war will be closely
scrutinised. Given the spat is being
seen as helping drag inflation down a
shade, its certainly no bad thing for
the wider economy, but the share price
has spent the bulk of the year strug-
gling to push above the 400p mark.
Many analysts remain bullish and
clearly the company will be looking for
a bumper Christmas, so any guidance
here will be closely watched, but the
companys ever expanding overseas
operation combined with a weak
pound will continue to add focus to
the international arm. Current IG
Index price is 406.9p-407.8p.
Two weeks ago we called Amazon
worthy of a buy when pulling back to
long term support lines around $186.
Seems the Black Friday shoppers
werent the only ones picking up bar-
gains as Amazon came within 60c of
hitting our target of $200 on Friday.
The trendline this week comes in
around $190 and any dips should be
used as buying opportunities for a
push through $200. Spread Co offers a
spread on Amazon of $197.45-$197.85
Craig Drake
THE WEEK AHEAD in association with
l TUI Travel announces its preliminary results
for the year today. The company is an interna-
tional leisure travel agency that operates aircraft
and retail outlets and services the European and
North American markets.
l Northgate will announce its interim results
tomorrow. A vehicle rental business, Northgate
hopes the first half of its financial year has driven
it to positive results.
l Photo-Me International has its interim
announcement on Friday. Photo-Me snapped its
way to success by manufacturing and selling
coin-operated photobooths.
l The Bank of England and the European Central
Bank will release their interest rate decisions on
Thursday. The previous BoE interest rate was 0.5
per cent. The ECBs previous interest rate was
1.25 per cent, down from Octobers 1.5 per cent.
l The Bank of Canada, Reserve Bank of
Australia and Reserve Bank of New Zealand will
also release their interest rate decisions this
l The Statisches Bundesamt Deutschland will
release the consumer price index for Germany on
Friday. This will reveal the countrys rate of infla-
l US and Chinese defence officials will hold their
annual defence talks in Beijing this week. This
comes three months after the Obama adminis-
tration decided it would sell $5.3bn in upgrades
to Taiwans fighter jet fleet, despite Chinas oppo-
l Conservative Anthea McIntyre starts work in
the European Parliament this week, as the UKs
73rd MEP. McIntyre will represent the West
l On Friday, Merkozy will present their plans for
tackling the Eurozone crisis to EU leaders at a
summit in Brussels.

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N AN earlier article I said that I
was disheartened by the chain of
disappointments that are perpet-
uating the crisis of the Eurozone.
Many analysts, and I among them,
believe that the European Central
Bank has the ability to change histo-
ry, or is destined to repeat it. To quote
the world renowned economist and
Nobel Prize recipient, Milton
Friedman, Governments never
learn. Only people learn. On this
point, one can only hope that he is
The Eurozone crisis has been drawing
a great many parallels to the Great
Depression, though some economists
feel that that is unjustified. However,
quite a few believe that some of the
blame for the Great Depression must
be placed squarely at the feet of the
central bankers, which steadfastly
supported the gold standard. Back in
the late 1920s and early 1930s, the
majority of the worlds developed
economies were all tied to the gold
standard, which meant that they
pegged their circulating currency to
the actual amount of gold bullion
they held in store. That limited their
ability to increase the money supply,
which in turn prevented them from
lowering interest rates. A liquidity
crunch ensued, and the banking sys-
tem such as it wasessentially col-
Finally, in 1933, President Franklin
D. Roosevelt took the US off the gold
standard, which gave the Federal
Reserve leave to print money, as and
when needed. A few years after, as
their economy worsened, the UK
would similarly abandon the gold
standard. Even now, Federal Reserve
Chairman Ben Bernanke acknowl-
edges that it was a mistake for the US
government to have waited that long
to abandon the gold standard and to
ignore the demand to increase the
money supply. He is among many
who believe that that was a major
policy misstep.
And that is where the European
Central Bank finds itself right now
in a similar place to the Federal
Reserve Bank of the twentieth centu-
rys Great Depression, on the verge of
a major policy misstep that could
result in the twenty-first centurys
Great Depression. Yes, it is a different
century, but the mistakes being
made are unchanged. The US, no
longer tied to the gold standard,
through the Federal Reserves mone-
tary policy, can print money as and
when needed. As it is now, the ECB is
standing idly by, watching the
Eurozone economy rapidly deterio-
rate for want of additional capital,
and using the excuse that it is bound
by the tenets of its mandate.
The recent actions by the worlds
major central bank went some way to
appeasing the market, but the eupho-
ria was fleeting. Markets need quick
and decisive action; they are hopeful
that the rescue of Italy and perhaps
Spain, as well, will be sufficient to
avert a crisis. If that is what they are
hoping, they are making a fatal mis-
Take the revised yield curve on
Italian sovereign debt as evidence of
how worried investors really are.
Two-year bonds were trading at a
higher yield than the 10-year bench-
mark notes; that means investors are
already pricing in a default. Even a
successful rescue doesnt provide
assurance that Italy will never go
bankrupt at some point in the future.
The government is in the process of
instituting various reforms, many of
which will be wildly unpopular with
the Italian people, but are absolutely
necessary. But Italy wont be the only
Eurozone member facing austerity;
hardships will be prevalent through-
out, and liquidity will be sharply
squeezed. Just like in the 1930s.
Its quite possible that, without
quick ECB intervention, the liquidity
squeeze could hit the major indices
incredibly and protractedly hard.
Historical data suggests that
investors could see a decline in global
indices by as much as 50 per cent,
and which could last as long as three
to four years.
It can all be averted. Milton
Friedman, considered one of the
great thinkers of our time, said this,
The Great Depression, like most
other periods of severe unemploy-
ment, was produced by government
mismanagement rather than by any
inherent instability of the private
economy. Certainly, Ben Bernanke,
who once offered an apology on
behalf of the Federal Reserve for the
needlessly enduring Great
Depression, would agree.
Clouds: In ichimoku theory, all signals are not
created equal, and this is where the cloud comes
into play. Dolan explains that the strongest sell
signal is generated when the downside crossover
occurs while prices are below the cloud and the
strongest buy signal comes from an upside
crossover while prices are above the cloud.
Except Chikou span, all the other lines also work
for traders as supports and resistance. Elliott
Winner of Capital Spreads explains that
ichimoku helps traders identify support and
resistance levels and indicate momentum at a
quick glance. He adds: It also shows future
direction of a current trend using moving aver-
ages to show bearish and bullish crossover
Since forming in Japan, ichimokus popularity
has dispersed across Asia. A strong easterly is
blowing ichimoku westward, as over the years
the indicator becomes increasingly popular for
western traders. Spread Cos Ian OSullivan says
it is being used more and more in analyses and
is mentioned increasingly on tweets as a point
of reference for trading levels. James Stanley, a
trading instructor at DailyFX, the research arm
of FXCM, thinks ichimoku is the type of trading
system that can really grow in popularity.
Its time to get your head in the clouds.
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ANALYSIS l FTSE Ichimoku cloud
2007 2008 2009 2010 2011
Apr Jul Oct May Sep May Oct May Oct Apr Oct
Interval: 1 week; Time: 5 years
Looking for grey
clouds on the horizon
Picture: GETTY
LON GD ONCE FIX AM...........1751.00 1.00
SILVER LDN FIX AM ..................32.79 -0.15
MAPLE LEAF 1 OZ ....................35.23 0.11
LON PLATINUM AM................1559.00 7.00
LON PALLADIUM AM...............657.00 44.00
ALUMINIUM CASH .................2103.00 125.50
COPPER CASH ......................7800.50 395.50
LEAD CASH...........................2061.00 76.00
NICKEL CASH......................17170.00 240.00
TIN CASH.............................20300.00 250.00
ZINC CASH ............................2032.00 90.00
BRENT SPOT INDEX................110.71 0.30
SOYA .....................................1128.00 -3.25
COCOA..................................2079.00 -83.00
COFFEE...................................233.20 0.60
KRUG.....................................1814.50 6.10
WHEAT ....................................143.15 -0.30
AIR LIQUIDE........................................91.87 -0.08 100.65 80.90
ALLIANZ..............................................78.72 2.47 108.85 56.16
ANHEUS-BUSCH INBEV ....................44.51 0.15 45.23 33.85
ARCELORMITTAL...............................14.23 0.16 28.55 10.47
AXA......................................................11.07 0.57 16.16 7.88
BANCO SANTANDER...........................5.78 0.23 9.20 5.05
BASF SE..............................................53.98 0.92 70.22 42.19
BAYER.................................................47.30 -0.05 59.44 35.36
BBVA......................................................6.45 0.23 9.17 4.94
BMW ....................................................55.61 0.43 73.85 43.49
BNP PARIBAS.....................................31.60 2.73 59.93 22.72
CARREFOUR ......................................19.85 -0.27 31.98 14.66
CRH PLC .............................................14.18 0.13 17.40 10.28
DAIMLER.............................................33.93 0.58 59.09 29.02
DANONE..............................................48.45 -0.27 53.16 41.92
DEU.BOERSE OFFRE ........................44.53 -0.14 55.75 35.46
DEUTSCHE BANK..............................30.08 1.45 48.70 20.79
DEUTSCHE TELEKOM.........................9.26 -0.29 11.38 7.88
E.ON.....................................................18.18 -0.17 25.54 12.50
ENEL......................................................3.14 -0.00 4.86 2.78
ENI .......................................................15.85 0.14 18.66 11.83
FRANCE TELECOM............................12.65 -0.04 16.65 11.12
GDF SUEZ ...........................................20.92 0.04 30.05 17.65
GENERALI ASS...................................12.41 0.02 17.05 10.34
IBERDROLA..........................................5.02 0.05 6.50 4.29
INDITEX ...............................................63.55 -0.10 69.40 50.92
ING GROEP CVA...................................6.01 0.37 9.50 4.21
INTESA SANPAOLO.............................1.30 0.06 2.47 0.85
KON.PHILIPS ELECTR.......................15.18 0.22 25.45 12.01
L'OREAL..............................................78.96 -0.24 91.24 68.83
LVMH..................................................116.25 0.25 132.65 94.16
MUNICH RE.........................................94.82 1.79 126.00 77.80
NOKIA....................................................4.18 -0.03 8.49 3.33
REPSOL YPF.......................................22.57 0.26 24.90 17.31
RWE.....................................................30.12 -0.38 55.88 21.22
SAINT-GOBAIN...................................31.29 0.19 47.64 26.07
SANOFI ................................................51.79 -0.22 56.82 42.85
SAP......................................................44.72 0.15 46.15 32.88
SCHNEIDER ELECTRIC.....................42.17 0.64 61.83 35.00
SIEMENS .............................................75.16 0.76 99.39 62.13
SOCIETE GENERALE.........................18.91 1.41 52.70 14.32
TELECOM ITALIA..................................0.85 0.01 1.16 0.70
TELEFONICA ......................................13.95 0.07 18.75 12.50
TOTAL..................................................38.61 0.31 44.55 29.40
UNIBAIL-RODAMCO SE...................137.25 -0.80 162.95 123.30
UNICREDIT............................................0.79 0.02 2.03 0.64
UNILEVER CVA...................................24.75 -0.15 25.41 20.90
VINCI ....................................................33.32 0.88 45.48 28.46
VIVENDI ...............................................16.96 -0.05 22.07 14.10
VOLKSWAGEN VORZ ......................128.55 1.85 152.20 86.40
Price Chg High Low
FTSE 100 . . . . . . . . . . . . . . 5552.29 62.95 1.15
FTSE 250 INDEX . . . . . . . 10307.32 103.57 1.02
FTSE UK ALL SHARE . . . . 2856.45 31.72 1.12
FTSE AIMALL SH . . . . . . . . 702.99 7.04 1.01
DOWJONES INDUS 30 . . 12019.42 -0.61 -0.01
S&P 500 . . . . . . . . . . . . . . . 1244.28 -0.30 -0.02
NASDAQ COMPOSITE . . . 2626.93 0.73 0.03
FTSEUROFIRST 300 . . . . . . 985.34 9.32 0.95
NIKKEI 225 . . . . . . . . . . . . . 8643.75 46.37 0.54
DAX 30 PERFORMANCE. . 6080.68 44.80 0.74
CAC 40 . . . . . . . . . . . . . . . . 3164.95 35.00 1.12
SHANGHAI SE INDEX . . . . 2360.66 -26.20 -1.10
HANG SENG. . . . . . . . . . . 19040.39 38.13 0.20
S&P/ASX 20 INDEX . . . . . . 2580.20 36.20 1.42
ASX ALL ORDINARIES . . . 4346.30 58.20 1.36
BOVESPA SAO PAOLO. . 57885.85 -257.57 -0.44
ISEQ OVERALL INDEX . . . 2720.59 10.81 0.40
STI . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00
IGBM. . . . . . . . . . . . . . . . . . . 857.95 15.09 1.79
SWISS MARKET INDEX. . . 5718.85 37.28 0.66
Price Chg %chg
3M........................................................79.76 -0.54 98.19 68.63
ABBOTT LABS ...................................54.15 -0.37 55.61 45.07
ALCOA ..................................................9.91 0.10 18.47 8.45
ALTRIA GROUP..................................28.41 -0.27 29.05 23.20
AMAZON.COM..................................196.03 -1.10 246.71 160.59
AMERICAN EXPRESS........................48.23 0.44 53.80 41.25
AMGEN INC.........................................58.10 0.10 61.53 47.66
APPLE...............................................389.70 1.77 426.70 310.50
AT&T....................................................28.96 0.12 31.94 27.20
BANK OF AMERICA.............................5.64 0.11 15.31 5.03
BERKSHIRE HATAW B.......................77.44 -0.37 87.65 65.35
BOEING CO.........................................71.30 0.32 80.65 56.01
BRISTOL MYERS SQUI ......................32.77 -0.13 33.27 20.05
CATERPILLAR....................................96.29 -0.53 116.55 67.54
CHEVRON.........................................101.69 -0.14 110.01 81.75
CISCO SYSTEMS................................18.55 -0.03 22.34 13.30
CITIGROUP.........................................28.17 1.18 51.50 21.40
COCA-COLA.......................................66.38 -0.45 71.77 61.29
COLGATE PALMOLIVE......................90.19 0.08 94.89 74.86
CONOCOPHILLIPS.............................72.55 0.79 81.80 58.65
DU PONT(EI) DE NMR........................47.02 -0.27 57.00 37.10
EXXON MOBIL....................................79.79 0.00 88.23 63.47
GENERAL ELECTRIC.........................16.09 0.18 21.65 14.02
GOOGLE A........................................620.36 6.59 642.96 473.02
HEWLETT PACKARD.........................27.68 -0.54 49.39 19.92
HOME DEPOT.....................................39.94 0.60 40.46 28.13
IBM.....................................................189.66 0.21 191.33 143.51
INTEL CORP .......................................24.64 -0.28 26.78 19.16
J.P.MORGAN CHASE.........................32.33 1.87 48.36 27.85
JOHNSON & JOHNSON.....................63.47 -0.98 68.05 57.50
KRAFT FOODS A................................36.50 0.00 36.63 24.30
MC DONALD'S CORP ........................95.70 0.20 96.47 72.14
MERCK AND CO. NEW......................35.48 -0.20 37.65 29.47
MICROSOFT........................................25.22 -0.06 29.46 23.65
OCCID. PETROLEUM.........................95.92 -0.91 117.89 66.36
ORACLE CORP...................................31.20 -0.47 36.50 24.72
PEPSICO.............................................64.28 0.19 71.89 58.50
PFIZER ................................................19.89 -0.14 21.45 16.42
PHILIP MORRIS INTL .........................75.47 -0.22 77.00 55.85
PROCTER AND GAMBLE ..................64.66 0.58 67.72 56.57
QUALCOMM INC ................................54.34 -0.39 59.84 45.98
SCHLUMBERGER ..............................75.01 0.14 95.64 54.79
TRAVELERS CIES..............................54.24 -0.80 64.17 45.97
UNION PACIFIC ................................102.69 -0.24 107.89 77.73
UNITED TECHNOLOGIE ....................76.54 -0.04 91.83 66.87
UNITEDHEALTH GROUP...................48.23 -0.29 53.50 34.94
VERIZON COMMS ..............................37.85 0.08 38.95 32.22
WAL-MART STORES..........................58.09 -0.52 59.40 48.31
WALT DISNEY CO ..............................36.61 0.62 44.34 28.19
WELLS FARGO & CO.........................26.07 0.43 34.25 22.58
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 ..................0.625 0.00
LIBOR Euro - 12 months ................2.004 0.00
LIBOR USD - overnight...................0.146 0.00
LIBOR USD - 12 months.................1.065 0.00
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 .........................3.020 -0.08
European repo rate.........................0.398 0.04
Euro Euribor ....................................0.892 0.00
The vix index ...................................27.33 -0.08
The baItic dry index ........................1.862 0.01
Markit iBoxx...................................236.68 0.29
Markit iTraxx..................................174.35 -10.06
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
BAE Systems . . . . . .272.9 1.6 361.1 248.1
Chemring Group . . . .397.0 2.0 736.5 368.8
Cobham . . . . . . . . . . .178.3 4.7 236.5 165.9
Meggitt . . . . . . . . . . . .384.0 1.2 397.6 304.9
QinetiQ Group . . . . . .131.2 3.8 136.3 101.5
RoIIs-Royce Group . .720.5 -13.0 738.0 557.5
Senior . . . . . . . . . . . . .174.2 -2.1 190.6 132.6
UItra EIectronics . . .1440.0 9.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .193.7 2.9 245.0 157.0
BarcIays . . . . . . . . . . .190.7 13.5 333.6 138.9
HSBC HoIdings . . . . .510.7 15.0 730.9 463.5
LIoyds Banking Gr . . .25.4 1.4 69.6 21.8
RoyaI Bank of Sco . . .21.6 1.1 49.0 17.3
Standard Chartere .1452.5 45.5 1878.0 1169.5
AG Barr . . . . . . . . . .1177.0 16.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .329.4 -0.1 488.1 289.9
Diageo . . . . . . . . . . .1355.0 3.0 1369.5 1112.0
SABMiIIer . . . . . . . . .2237.0 -2.5 2354.5 1979.0
AZ EIectronic Mat . . .249.0 8.8 338.1 206.1
Croda Internation . .1844.0 -2.0 2081.0 1456.0
EIementis . . . . . . . . . .148.0 -4.5 187.4 107.5
Johnson Matthey . .1902.0 15.0 2119.0 1523.0
Victrex . . . . . . . . . . .1167.0 1.0 1590.0 1025.0
YuIe Catto & Co . . . . .170.3 -4.7 253.0 148.0
C/$ 1.3407 0.0006
C/ 0.8594 0.0014
C/ 104.60 0.0295
/C 1.1635 0.0019
/$ 1.5601 0.0003
/ 121.71 0.0085
FTSE 100
FTSE 250
S&P 500
RPC Group . . . . . . . .350.2 -2.8 384.8 217.0
Smiths Group . . . . . .953.0 8.0 1429.0 869.5
Brown (N.) Group . . .270.0 4.7 311.2 242.3
Carpetright . . . . . . . . .438.6 48.5 835.5 375.0
Debenhams . . . . . . . . .64.4 2.0 75.7 51.2
Dignity . . . . . . . . . . . .834.0 26.5 854.5 648.5
Dixons RetaiI . . . . . . .11.5 0.4 26.1 9.4
DuneImGroup . . . . . .453.5 4.3 550.0 383.9
HaIfords Group . . . . .329.6 6.2 459.7 268.6
Home RetaiI Group . . .98.4 8.0 235.0 72.5
Inchcape . . . . . . . . . .328.3 7.8 425.4 268.1
JD Sports Fashion . .675.0 -25.0 1030.0 675.0
Kesa EIectricaIs . . . . .85.2 0.4 174.0 78.4
Kingfisher . . . . . . . . .263.5 2.2 287.1 217.0
Marks & Spencer G . .330.1 5.3 402.2 301.8
Mothercare . . . . . . . .160.2 3.7 627.5 127.3
Next . . . . . . . . . . . . .2717.0 56.0 2810.0 1868.0
Sports Direct Int . . . .231.9 4.7 266.2 135.0
WH Smith . . . . . . . . . .514.0 1.0 558.0 433.8
Smith & Nephew . . . .596.0 12.0 742.0 521.0
Synergy HeaIth . . . . .859.0 -6.0 981.0 808.0
Barratt DeveIopme . .101.3 2.1 119.0 67.5
BeIIway . . . . . . . . . . . .776.5 22.0 789.0 540.5
BaIfour Beatty . . . . . .251.4 3.2 357.3 214.6
GaIIiford Try . . . . . . . .479.0 3.0 530.0 285.0
Kier Group . . . . . . . .1458.0 23.0 1462.0 1097.0
Drax Group . . . . . . . .534.5 -16.0 581.5 359.2
SSE . . . . . . . . . . . . . .1274.0 -44.0 1423.0 1111.0
Domino Printing S . .501.0 3.8 705.0 434.3
HaIma . . . . . . . . . . . . .341.0 0.5 429.6 306.3
Laird . . . . . . . . . . . . . .146.8 -1.4 207.0 127.9
Morgan CrucibIe C . .272.9 4.1 357.1 224.0
Oxford Instrument .1010.0 29.0 1039.0 594.5
Renishaw . . . . . . . . . .901.5 3.5 1886.0 800.0
Spectris . . . . . . . . . .1245.0 4.0 1679.0 1039.0
Aberforth SmaIIer . . .530.0 2.0 714.0 507.0
AIIiance Trust . . . . . .346.7 3.2 392.7 310.2
Bankers Inv Trust . . .386.5 5.5 428.0 346.5
BH GIobaI Ltd. GB .1211.0 1.0 1213.1 1058.0
BH GIobaI Ltd. US . . . .11.9 0.1 12.2 10.4
BH Macro Ltd. EUR . . .20.2 0.0 20.3 15.8
BH Macro Ltd. GBP 2075.0 -3.0 2089.0 1630.0
BH Macro Ltd. USD . . .20.1 0.1 20.2 15.8
BIackRock WorId M .632.5 10.0 815.5 574.5
BIueCrest AIIBIue . . .167.8 0.8 176.2 162.4
British Assets Tr . . . .121.4 1.7 140.5 109.0
British Empire Se . . .447.0 -3.0 533.0 409.9
CaIedonia Investm .1460.0 1.0 1928.0 1398.0
City of London In . . .285.2 4.1 306.9 257.0
Dexion AbsoIute L . .135.6 0.8 151.0 130.0
Edinburgh Dragon . .221.0 2.6 262.1 201.4
Edinburgh Inv Tru . . .475.0 1.8 492.2 414.9
EIectra Private E . . .1415.0 -15.0 1755.0 1287.0
F&C Inv Trust . . . . . .292.2 1.5 327.9 261.5
FideIity China Sp . . . . .79.7 0.8 123.0 70.0
FideIity European . .1008.0 10.0 1287.0 912.0
HeraId Inv Trust . . . . .456.0 2.0 545.5 419.0
HICL Infrastructu . . . .118.5 0.2 121.3 112.7
Impax Environment . .98.0 1.0 130.5 88.5
JPMorgan American .836.0 20.0 916.0 721.5
JPMorgan Asian In . .192.9 4.8 250.8 170.1
JPMorgan Emerging .522.0 2.5 639.0 480.1
JPMorgan European .694.0 14.0 983.5 643.0
JPMorgan Indian I . . .346.0 7.0 492.0 247.3
JPMorgan Russian .537.0 7.0 755.0 415.1
Law Debenture Cor . .352.1 4.0 385.0 321.0
MercantiIe Inv Tr . . . .885.0 1.0 1137.0 825.0
Merchants Trust . . . .375.0 8.0 431.8 341.5
Monks Inv Trust . . . .319.9 4.4 367.9 298.1
Murray Income Tru . .630.0 6.0 673.0 568.0
Murray Internatio . . .921.5 24.5 991.5 818.5
PerpetuaI Income . . .258.5 1.5 276.0 236.5
PersonaI Assets T .34030.0 -20.0 34330.030210.0
PoIar Cap TechnoI . .331.5 1.6 391.2 299.5
RIT CapitaI Partn . . .1223.0 3.0 1360.0 1129.0
Scottish Inv Trus . . . .457.9 6.9 524.0 417.0
Scottish Mortgage . .632.5 12.5 781.0 573.5
SVG CapitaI . . . . . . . .192.0 -0.5 279.8 182.1
TempIe Bar Inv Tr . . .871.0 9.0 952.0 791.0
TempIeton Emergin .567.0 12.5 689.5 497.0
TR Property Inv T . . .155.9 3.2 206.1 140.5
TR Property Inv T . . . .70.0 2.5 94.0 67.6
Witan Inv Trust . . . . .450.0 5.0 533.0 401.5
3i Group . . . . . . . . . . .190.3 1.4 340.0 176.9
3i Infrastructure . . . .122.0 1.0 125.2 113.1
Aberdeen Asset Ma .203.4 1.9 240.0 167.8
Ashmore Group . . . .346.9 8.6 420.0 301.5
Brewin DoIphin Ho . .127.8 1.7 185.4 113.7
CameIIia . . . . . . . . . .9550.0 151.010950.0 8800.0
CharIes TayIor Co . . .126.3 -0.5 166.5 121.0
City of London Gr . . . .61.5 -1.0 93.6 61.5
City of London In . . .328.0 0.0 461.5 321.3
CIose Brothers Gr . . .631.5 -13.0 888.5 604.0
CoIIins Stewart H . . . .49.8 1.0 90.8 48.8
EvoIution Group . . . . .83.8 2.8 94.0 62.3
F&C Asset Managem .68.5 0.2 92.9 56.1
Hargreaves Lansdo .468.5 1.6 646.5 402.5
HeIphire Group . . . . . . .2.0 0.3 17.4 1.4
Henderson Group . . .117.2 4.5 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .369.0 24.7 570.5 311.6
IG Group HoIdings . .481.8 1.9 528.0 393.6
Intermediate Capi . . .244.6 7.5 360.3 197.9
InternationaI Per . . . .205.5 0.5 388.8 170.1
InternationaI Pub . . . .119.2 0.6 119.5 108.6
Investec . . . . . . . . . . .372.5 11.8 538.0 318.4
IP Group . . . . . . . . . . . .72.5 1.5 76.5 29.9
Jupiter Fund Mana . .226.5 6.0 337.3 184.9
Liontrust Asset M . . . .77.3 -0.3 90.0 57.9
LMS CapitaI . . . . . . . . .57.0 1.0 64.8 44.8
London Finance & . . .22.0 0.0 23.5 16.5
London Stock Exch .851.0 -1.5 1076.0 772.5
Lonrho . . . . . . . . . . . . . .9.1 0.1 19.8 8.2
Man Group . . . . . . . . .142.4 2.8 311.0 123.6
Paragon Group Of . .187.6 3.6 206.1 134.6
Provident Financi . . .997.0 3.0 1124.0 806.5
Rathbone Brothers .1082.0 16.0 1257.0 977.0
Record . . . . . . . . . . . . .14.0 -0.4 41.0 13.5
RSM Tenon Group . . .15.3 -0.5 66.3 15.3
Schroders . . . . . . . .1383.0 43.0 1922.0 1183.0
Schroders (Non-Vo .1142.0 14.0 1554.0 970.0
TuIIett Prebon . . . . . .308.0 15.0 428.6 286.7
WaIker Crips Grou . . .44.5 0.0 51.5 40.0
BT Group . . . . . . . . . .185.5 -3.5 204.1 161.0
CabIe & WireIess . . . .38.3 0.1 52.9 31.3
CabIe & WireIess . . . .16.9 0.5 76.9 14.2
COLT Group SA . . . . .93.0 0.1 156.2 84.1
KCOM Group . . . . . . . .73.0 1.0 84.0 52.3
TaIkTaIk TeIecom . . .133.5 1.1 168.3 119.8
TeIecomPIus . . . . . . .770.0 -9.0 802.0 422.0
Booker Group . . . . . . .76.7 1.3 80.0 54.5
Greggs . . . . . . . . . . . .492.5 -0.5 550.5 435.3
Morrison (Wm) Sup .316.7 -6.2 325.0 262.7
Ocado Group . . . . . . . .90.3 2.2 285.0 81.0
Sainsbury (J) . . . . . . .299.1 -4.1 391.5 263.5
Tesco . . . . . . . . . . . . .405.0 -1.0 439.0 356.3
Associated Britis . . .1116.0 0.0 1182.0 940.0
Cranswick . . . . . . . . .743.0 7.5 883.5 588.5
Dairy Crest Group . . .335.0 2.9 424.9 318.8
Devro . . . . . . . . . . . . .254.0 0.0 296.9 223.5
Premier Foods . . . . . . . .5.5 -0.0 35.1 3.3
Tate & LyIe . . . . . . . . .664.0 -3.5 689.5 511.0
UniIever . . . . . . . . . .2102.0 -13.0 2146.0 1793.0
Mondi . . . . . . . . . . . . .463.6 12.6 664.0 413.5
Centrica . . . . . . . . . . .296.3 -5.4 345.8 282.6
InternationaI Pow . . .332.0 -4.0 448.6 279.4
NationaI Grid . . . . . . .607.5 -20.0 649.5 530.0
Pennon Group . . . . . .691.0 -20.5 737.5 584.5
Severn Trent . . . . . .1498.0 -55.0 1600.0 1368.0
United UtiIities . . . . .613.0 -10.5 637.0 543.5
Cookson Group . . . . .490.4 -3.8 724.5 395.8
DS Smith . . . . . . . . . .201.0 2.4 266.2 164.4
Rexam . . . . . . . . . . . .345.4 2.5 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1360.0 93.0 1383.0 840.0
Bovis Homes Group .499.6 16.8 499.9 326.5
Persimmon . . . . . . . .510.0 15.1 518.5 372.3
Reckitt Benckiser . .3205.0 -6.0 3648.0 3015.0
Redrow . . . . . . . . . . . .115.2 3.2 139.0 103.5
TayIor Wimpey . . . . . . .39.4 1.5 43.3 25.4
Bodycote . . . . . . . . . .274.7 3.3 397.7 225.6
Charter Internati . . . .935.0 11.0 952.0 538.5
Fenner . . . . . . . . . . . .390.0 -4.0 422.5 280.0
IMI . . . . . . . . . . . . . . . .778.5 19.5 1119.0 636.5
MeIrose . . . . . . . . . . .345.0 5.0 365.4 268.0
Northgate . . . . . . . . . .232.2 4.4 346.7 209.0
Rotork . . . . . . . . . . .1839.0 43.0 1858.0 1501.0
Spirax-Sarco Engi . .1871.0 10.0 2063.0 1649.0
Weir Group . . . . . . .2074.0 2.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .294.5 0.2 499.0 238.7
TaIvivaara Mining . . .234.0 3.4 622.0 195.2
BBAAviation . . . . . . .176.5 5.6 240.8 156.0
Stobart Group Ltd . . .116.0 0.0 163.6 112.0
AdmiraI Group . . . . . .911.5 -0.5 1754.0 800.5
AmIin . . . . . . . . . . . . .332.0 8.2 427.0 270.6
Huntsworth . . . . . . . . .39.3 1.3 85.0 36.3
Informa . . . . . . . . . . . .364.8 6.8 461.1 313.9
ITE Group . . . . . . . . . .207.0 12.4 258.2 157.7
ITV . . . . . . . . . . . . . . . . .65.2 1.3 93.5 51.7
Johnston Press . . . . . . .4.8 0.0 12.8 4.1
MecomGroup . . . . . .185.0 1.0 310.0 134.5
Moneysupermarket. .107.7 2.2 120.4 75.7
Pearson . . . . . . . . . .1143.0 8.0 1207.0 978.5
PerformGroup . . . . .215.0 0.0 234.5 150.0
Reed EIsevier . . . . . .524.0 -2.0 590.5 461.3
Rightmove . . . . . . . .1276.0 11.0 1408.0 743.0
STV Group . . . . . . . . . .87.1 -1.4 168.0 86.0
Tarsus Group . . . . . .132.0 -1.8 165.0 114.0
Trinity Mirror . . . . . . . .48.8 1.8 93.0 37.5
UBM . . . . . . . . . . . . . .497.7 4.9 725.0 416.0
UTV Media . . . . . . . . .104.0 -5.0 150.0 101.0
WiImington Group . . .85.3 0.0 183.0 82.5
WPP . . . . . . . . . . . . . .673.5 12.0 846.5 578.0
YeII Group . . . . . . . . . . .5.9 0.4 14.8 3.4
African Barrick G . . .515.5 21.6 618.5 393.5
AIIied GoId Minin . . .187.0 -0.2 281.3 34.4
AngIo American . . .2471.0 44.0 3437.0 2138.5
AngIo Pacific Gro . . .278.6 16.4 369.3 237.9
Antofagasta . . . . . . .1199.0 29.0 1634.0 900.5
Aquarius PIatinum . .183.2 11.5 419.0 150.0
BeazIey . . . . . . . . . . . .135.0 2.2 139.2 109.6
CatIin Group Ltd. . . .419.8 3.4 425.8 334.0
Hiscox Ltd. . . . . . . . . .391.4 3.0 424.7 340.5
Jardine LIoyd Tho . . .673.5 14.5 764.5 576.0
Lancashire HoIdin . . .727.0 4.0 774.5 529.0
RSA Insurance Gro . .108.9 1.3 143.5 102.2
Aviva . . . . . . . . . . . . . .320.8 11.2 477.9 275.3
LegaI & GeneraI G . . .108.0 3.2 123.8 89.8
OId MutuaI . . . . . . . . .118.1 4.0 144.8 98.1
Phoenix Group HoI . .553.0 13.0 688.0 451.1
PrudentiaI . . . . . . . . .649.0 21.5 777.0 509.0
ResoIution Ltd. . . . . .253.1 8.4 316.1 211.7
St James's PIace . . . .340.7 11.4 376.0 253.1
Standard Life . . . . . . .207.5 3.8 244.7 172.0
4Imprint Group . . . . .235.5 -7.5 295.0 200.0
Aegis Group . . . . . . .137.5 1.5 158.5 115.7
BIoomsbury PubIis . . .92.0 -2.8 138.0 91.0
British Sky Broad . . .764.5 -1.5 850.0 618.5
Centaur Media . . . . . . .36.5 0.3 73.0 34.6
Chime Communicati .179.0 2.0 298.5 173.0
Creston . . . . . . . . . . . .71.3 -1.8 121.0 70.3
DaiIy MaiI and Ge . . .398.0 2.5 594.5 343.4
Euromoney Institu . .632.0 -16.5 736.0 522.5
Future . . . . . . . . . . . . . . .9.0 0.0 30.0 8.5
Haynes PubIishing . .225.0 0.0 257.0 210.0
BHP BiIIiton . . . . . . .2000.5 77.5 2631.5 1667.0
Centamin Egypt Lt . . .99.8 0.8 183.5 80.8
Eurasian NaturaI . . .674.5 12.5 1125.0 522.0
FresniIIo . . . . . . . . . .1753.0 12.0 2150.0 1296.0
GemDiamonds Ltd. .194.5 5.1 306.0 179.8
GIencore Internat . . .411.0 18.7 531.1 348.0
HochschiId Mining . .445.0 17.6 680.0 394.9
Kazakhmys . . . . . . . .956.0 38.0 1671.0 730.0
Kenmare Resources . .34.1 -1.1 59.9 25.5
Lonmin . . . . . . . . . . .1063.0 26.0 1983.0 963.0
New WorId Resourc .455.4 9.3 1060.0 410.5
PetropavIovsk . . . . . .699.5 -3.5 1165.0 543.5
RandgoId Resource 6700.0 -50.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3346.5 42.5 4712.0 2712.5
Vedanta Resources 1086.0 32.0 2559.0 928.0
Xstrata . . . . . . . . . . .1036.0 28.0 1550.0 648.0
Inmarsat . . . . . . . . . . .438.2 10.3 719.5 389.3
Vodafone Group . . . .172.1 -1.1 182.8 155.1
Genesis Emerging . .463.0 7.0 568.0 424.0
Afren . . . . . . . . . . . . . . .84.3 -1.0 171.2 73.6
BG Group . . . . . . . . .1364.0 13.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .464.8 10.5 509.0 363.2
Cairn Energy . . . . . . .274.0 7.0 469.7 261.4
EnQuest . . . . . . . . . . . .96.1 0.9 158.5 85.7
Essar Energy . . . . . .245.4 16.4 589.5 211.4
ExiIIon Energy . . . . . .265.0 -10.1 469.7 184.2
Heritage OiI . . . . . . . .189.3 6.6 486.0 160.0
Ophir Energy . . . . . . .267.2 3.2 299.0 184.5
Premier OiI . . . . . . . . .367.1 5.1 535.0 310.0
RoyaI Dutch SheII . .2239.0 32.5 2326.5 1883.5
RoyaI Dutch SheII . .2308.0 41.0 2336.0 1890.5
SaIamander Energy .213.9 5.3 317.6 182.3
Soco Internationa . . .309.3 5.8 400.0 278.0
TuIIow OiI . . . . . . . . .1403.0 15.0 1493.0 945.5
Amec . . . . . . . . . . . . .943.0 61.0 1251.0 740.5
Hunting . . . . . . . . . . .697.5 14.0 817.0 530.0
Kentz Corporation . .463.5 -1.2 508.0 275.5
LampreII . . . . . . . . . . .278.9 4.9 395.2 220.7
Petrofac Ltd. . . . . . .1456.0 24.0 1685.0 1108.0
Wood Group (John) .662.5 11.0 715.8 469.9
Burberry Group . . . .1316.0 8.0 1600.0 1030.0
PZ Cussons . . . . . . . .356.9 3.0 409.0 320.5
Supergroup . . . . . . . .520.0 28.0 1820.0 435.2
AstraZeneca . . . . . .2923.5 11.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .294.9 -2.3 309.7 210.1
Genus . . . . . . . . . . . .1035.0 5.0 1111.0 831.5
GIaxoSmithKIine . . .1421.5 14.0 1422.0 1127.5
Hikma Pharmaceuti .633.0 16.5 900.0 555.5
Shire PIc . . . . . . . . . .2129.0 3.0 2162.0 1481.0
CapitaI & Countie . . .176.3 -2.9 203.7 142.8
Daejan HoIdings . . .2660.0 -23.0 2954.0 2282.0
F&C CommerciaI Pr .102.9 0.6 108.0 91.5
Grainger . . . . . . . . . . .106.8 -0.1 133.2 77.3
London & Stamford .117.0 0.0 140.0 111.6
SaviIIs . . . . . . . . . . . . .319.9 3.7 427.1 256.2
UK CommerciaI Pro . .70.4 0.4 85.5 69.0
Unite Group . . . . . . . .177.3 2.3 224.1 152.9
Big YeIIow Group . . .256.2 3.7 352.2 218.0
British Land Co . . . . .503.5 3.8 629.5 452.0
CapitaI Shopping . . .324.4 4.5 424.8 288.7
Derwent London . . .1628.0 3.0 1880.0 1400.0
Great PortIand Es . . .341.4 -1.7 445.0 317.4
Hammerson . . . . . . . .390.4 1.4 490.9 352.0
Hansteen HoIdings . . .72.8 -0.5 89.5 69.6
Land Securities G . . .683.0 -3.0 885.0 616.0
SEGRO . . . . . . . . . . . .225.2 1.0 331.3 204.8
Shaftesbury . . . . . . . .499.2 1.2 539.0 431.7
Aveva Group . . . . . .1551.0 7.0 1799.0 1298.0
Computacenter . . . . .366.0 27.3 490.0 333.0
Fidessa Group . . . . .1570.0 26.0 2109.0 1440.0
Invensys . . . . . . . . . . .208.7 4.6 364.3 180.9
Logica . . . . . . . . . . . . .76.9 1.8 147.2 67.6
Micro Focus Inter . . .380.3 14.1 426.2 239.4
Misys . . . . . . . . . . . . .249.0 4.9 420.2 214.9
Sage Group . . . . . . . .290.7 3.4 302.0 231.7
SDL . . . . . . . . . . . . . . .630.5 44.5 711.5 585.0
TeIecity Group . . . . . .607.5 -7.5 620.5 430.0
Aggreko . . . . . . . . . .1885.0 -2.0 2034.0 1394.5
Ashtead Group . . . . .184.6 -3.6 207.9 99.4
Atkins (WS) . . . . . . . .630.0 -12.0 820.0 490.2
Babcock Internati . . .717.0 -11.0 738.0 540.5
Berendsen . . . . . . . . .423.4 -12.3 568.0 402.7
BunzI . . . . . . . . . . . . .830.0 2.5 838.5 676.5
Cape . . . . . . . . . . . . . .332.0 4.4 591.5 295.0
Capita Group . . . . . . .631.5 1.0 786.5 614.5
CariIIion . . . . . . . . . . .295.0 -2.4 403.2 281.0
De La Rue . . . . . . . . .881.5 20.0 936.0 641.5
DipIoma . . . . . . . . . . .339.0 -6.4 414.3 263.3
EIectrocomponents .206.3 2.3 294.9 182.2
Experian . . . . . . . . . . .839.5 -4.5 857.7 665.0
FiItrona PLC . . . . . . . .385.2 1.4 397.1 235.9
G4S . . . . . . . . . . . . . . .256.6 -0.6 291.0 219.9
Hays . . . . . . . . . . . . . . .71.2 -0.5 133.6 66.6
Homeserve . . . . . . . .270.0 14.1 532.0 218.5
Howden Joinery Gr . .109.0 1.0 127.5 93.1
Interserve . . . . . . . . . .315.3 -2.7 341.3 193.0
Intertek Group . . . . .1962.0 -4.0 2148.0 1715.0
MichaeI Page Inte . . .365.0 -14.9 567.0 338.7
Mitie Group . . . . . . . .249.1 -3.6 258.1 195.9
Premier FarneII . . . . .182.5 3.5 308.8 144.5
Regus . . . . . . . . . . . . . .92.5 1.0 119.0 64.0
RentokiI InitiaI . . . . . . .65.1 0.4 104.9 61.0
RPS Group . . . . . . . . .182.2 -2.9 253.0 156.6
Serco Group . . . . . . .483.6 -1.8 618.5 467.4
Shanks Group . . . . . .105.5 -0.1 130.9 103.0
SIG . . . . . . . . . . . . . . . .86.0 2.5 153.5 77.7
SThree . . . . . . . . . . . .221.8 -22.2 447.6 212.5
Travis Perkins . . . . . .849.5 17.0 1127.0 715.0
WoIseIey . . . . . . . . .1924.0 22.0 2261.0 1404.0
ARM HoIdings . . . . . .600.5 8.5 651.0 389.6
CSR . . . . . . . . . . . . . .172.1 0.1 447.0 154.1
Imagination Techn . .484.2 4.5 502.0 296.9
Pace . . . . . . . . . . . . . . .57.3 5.7 231.8 44.0
Spirent Communica .122.1 -1.3 160.3 109.5
British American . .2956.5 5.0 2995.0 2282.5
ImperiaI Tobacco . .2296.0 -14.0 2361.0 1784.0
Betfair Group . . . . . . .780.0 4.0 1264.0 567.0
Bwin.party Digita . . .140.4 4.2 257.6 100.6
CarnivaI . . . . . . . . . .2241.0 52.0 3153.0 1742.0
Compass Group . . . .589.5 -1.0 612.0 512.5
Domino's Pizza UK . .440.4 -10.7 586.0 377.0
easyJet . . . . . . . . . . . .380.8 0.8 474.0 301.0
FirstGroup . . . . . . . . .321.9 0.5 412.6 301.8
Go-Ahead Group . . .1223.0 4.0 1598.0 1190.0
Greene King . . . . . . .467.9 2.2 518.0 410.0
InterContinentaI . . .1121.0 25.0 1435.0 955.0
InternationaI Con . . .153.5 1.9 305.0 132.0
JD Wetherspoon . . . .425.1 0.3 468.3 380.5
Ladbrokes . . . . . . . . .131.5 0.7 155.3 114.0
Marston's . . . . . . . . . . .95.3 0.8 117.1 84.6
MiIIennium& Copt . .426.2 4.7 600.5 371.2
MitcheIIs & ButIe . . . .230.5 7.6 361.0 215.6
NationaI Express . . .212.7 3.3 270.2 201.6
Rank Group . . . . . . . .145.8 3.9 153.7 109.5
Restaurant Group . . .304.8 1.8 335.0 254.9
Stagecoach Group . .248.0 -1.2 272.4 200.0
Thomas Cook Group .16.2 -0.5 204.8 10.2
TUI TraveI . . . . . . . . . .169.6 4.4 271.9 136.7
Whitbread . . . . . . . .1642.0 21.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .203.4 1.7 244.1 159.5
Abcam . . . . . . . . . . . .344.3 -5.5 460.0 307.0
AIbemarIe & Bond . .327.1 10.9 400.1 272.0
Amerisur Resource . .14.0 0.3 29.0 9.5
Andor TechnoIogy . .535.0 -5.0 685.0 371.0
ArchipeIago Resou . . .67.5 -2.5 79.0 49.5
ASOS . . . . . . . . . . . .1360.0 11.0 2468.0 1230.0
AureIian OiI & Ga . . . .17.8 0.3 92.0 16.0
Avanti Communicat .308.0 4.3 735.0 248.5
Avocet Mining . . . . . .213.0 3.8 286.8 177.5
BIinkx . . . . . . . . . . . . . .75.0 4.0 158.0 64.8
Borders & Souther . . .64.5 -0.3 72.3 43.5
BowLeven . . . . . . . . . .72.8 7.8 398.0 64.0
Brooks MacdonaId 1087.5 30.0 1372.5 940.0
Cove Energy . . . . . . .100.8 4.0 112.8 61.0
Daisy Group . . . . . . .102.0 -0.9 127.0 88.0
EMIS Group . . . . . . . .500.0 -12.3 580.0 406.0
Encore OiI . . . . . . . . . .76.3 1.5 151.5 40.8
Faroe PetroIeum . . . .160.0 5.0 218.3 130.0
GuIfsands PetroIe . . .207.3 4.3 401.5 142.5
GWPharmaceuticaI . .92.0 1.0 130.0 87.0
H&T Group . . . . . . . . .325.0 0.0 395.0 277.0
Hamworthy . . . . . . . .827.0 -3.0 833.0 373.8
Hargreaves Servic .1095.0 -31.0 1180.0 710.0
HeaIthcare Locums . . . .3.1 0.1 3.3 2.8
Immunodiagnostic . .500.0 22.3 1218.0 470.8
ImpeIIamGroup . . . .267.6 0.1 387.5 180.5
James HaIstead . . . . .465.0 -0.1 495.0 360.0
KaIahari MineraIs . . .232.0 0.0 301.0 198.3
London Mining . . . . .315.8 11.8 436.5 278.5
Lupus CapitaI . . . . . .102.9 3.9 150.0 86.0
M. P. Evans Group . .397.0 -3.0 500.5 371.0
Majestic Wine . . . . . .367.0 14.0 510.0 353.0
May Gurney Integr . .277.3 -7.8 302.0 234.0
Monitise . . . . . . . . . . . .32.5 0.5 40.0 18.5
MuIberry Group . . . .1517.0 14.0 1920.0 700.0
Nanoco Group . . . . . . .58.0 -0.5 107.3 38.0
NauticaI PetroIeu . . .278.3 -1.8 547.0 223.5
NichoIs . . . . . . . . . . . .540.0 7.3 579.0 410.0
Numis Corporation . . .83.0 0.1 137.8 80.0
Pan African Resou . . .15.9 -0.4 16.3 9.5
Patagonia GoId . . . . . .53.3 1.0 70.0 37.3
Prezzo . . . . . . . . . . . . .55.5 0.0 71.5 53.3
Pursuit Dynamics . . .220.8 8.3 700.0 160.5
Rockhopper ExpIor .265.0 -0.3 386.0 141.0
RWS HoIdings . . . . . .452.6 7.0 479.8 266.5
Songbird Estates . . .107.0 3.0 160.3 104.0
VaIiant PetroIeum . . .441.5 7.3 672.0 397.0
Young & Co's Brew . .672.8 4.0 712.0 565.0
Carpetright . . . . . . . .438.6 12.4
Pace . . . . . . . . . . . . . . .57.3 11.1
Home RetaiI Group . . .98.4 8.9
Computacenter . . . . .366.0 8.1
BarcIays . . . . . . . . . . .190.7 7.6
SDL . . . . . . . . . . . . . . .630.5 7.6
BerkeIey Group HoI 1360.0 7.3
ICAP . . . . . . . . . . . . . .369.0 7.2
Essar Energy . . . . . .245.4 7.2
Amec . . . . . . . . . . . . .943.0 6.9
SThree . . . . . . . . . . . .221.8 -9.1
MichaeI Page Inter . .365.0 -3.9
ExiIIon Energy . . . . . .265.0 -3.7
JD Sports Fashion . .675.0 -3.6
Severn Trent . . . . . .1498.0 -3.5
SSE . . . . . . . . . . . . . .1274.0 -3.3
NationaI Grid . . . . . . .607.5 -3.2
Kenmare Resources . .34.1 -3.1
EIementis . . . . . . . . . .148.0 -3.0
Drax Group . . . . . . . .534.5 -2.9
Risers FaIIers
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
AIM 50
Tsy 3.250 11 . . . . .100.00 -0.04 102.7 100.0
Tsy 5.250 12 . . . .102.46 -0.06 106.7 102.4
Tsy 9.000 12 . . . .105.71 0.00 113.4 104.8
Tsy 5.000 12 . . . .101.19 -0.08 105.4 101.1
Tsy 4.500 13 . . . .105.16 -0.05 107.8 105.1
Tsy 2.500 13 . . . .284.18 -0.06 287.7 277.6
Tsy 8.000 13 . . . . .113.70 -0.07 119.1 113.6
Tsy 5.000 14 . . . . .112.40 -0.07 112.9 109.2
Tsy 7.750 15 . . . .101.02 -0.83 107.8 100.1
Tsy 4.750 15 . . . . .114.90 -0.06 115.0 108.6
Tsy 8.000 15 . . . .128.39 -0.06 129.2 123.7
Tsy 4.000 16 . . . . .113.82 0.03 113.9 104.9
Tsy 2.500 16 . . . .340.54 -0.04 342.7 310.2
Tsy 8.750 17 . . . .140.53 -0.31 141.9 132.9
Tsy 12.000 17 . . .123.09 -0.37 131.8 122.3
Tsy 1.250 17 . . . . .114.47 -0.07 115.4 106.7
Tsy 5.000 18 . . . .120.87 0.04 121.5 109.7
Tsy 4.500 19 . . . . .118.43 -0.02 119.6 105.4
Tsy 3.750 19 . . . . .113.16 -0.03 114.3 99.4
Tsy 2.500 20 . . . .357.76 -0.24 359.7 312.4
Tsy 4.750 20 . . . .120.85 -0.07 122.2 106.6
Tsy 8.000 21 . . . .150.06 -0.12 151.8 133.8
Tsy 1.875 22 . . . . .124.11 -0.38 125.5 111.3
Tsy 4.000 22 . . . . .114.98 -0.14 116.7 99.0
Tsy 2.500 24 . . . .321.22 -0.52 324.7 273.5
Tsy 5.000 25 . . . .126.75 -0.33 128.7 107.4
Tsy 1.250 27 . . . .120.59 -1.26 123.7 104.6
Tsy 4.250 27 . . . . .118.38 -0.75 120.8 97.9
Tsy 6.000 28 . . . .142.89 -0.74 145.8 119.5
Tsy 4.750 30 . . . . .125.11 -0.86 128.5 103.0
Tsy 4.125 30 . . . .306.96 -1.26 316.0 261.2
Tsy 4.250 32 . . . . .117.66 -0.93 121.1 96.0
Tsy 4.250 36 . . . . .118.06 -1.10 122.2 95.0
Tsy 4.750 38 . . . .127.41 -1.18 132.3 102.8
Tsy 4.500 42 . . . .123.76 -1.37 129.2 98.9
% %
Wealth Management
Business Features | Entrepreneurs
Donata Huggins meets
two men responsible
for improving access
to funding for small
firms by starting a
company of their own
NTREPRENEURS are an intriguing species.
Charismatic, fragile, passionate, distracted:
with such conflicting personality traits, its no
wonder they sometimes fail to turn great
ideas into viable and profitable businesses.
At Piper, we have worked with countless
entrepreneurs during our 25-year history. The
best share characteristics that can make all the
difference between failure and success. Here are
some thoughts on how to be one of them.
As your business grows, make sure you dont dis-
tance yourself from your consumers or assume
that you know them better than anyone else.
Great entrepreneurs listen obsessively to their
customers to the point where they can act
instinctively when something needs changing.
All the entrepreneurs weve ever met have multi-
ple ideas and short attention spans. Theyre
always on to the next thing. But the ones who
succeed stay focused, do one thing really well and
dont allow themselves to get distracted. When
Piper invested in Boden in 1999, its founder
Johnnie Boden was considering moving the direct
clothing brand into retail. At that stage, many
customers didnt shop direct it was the big
catalogues and nothing else. Our recommenda-
tion was to stick to selling direct. Johnnie was
growing a very good direct business that was
much less capital intensive and lower risk than
retail. It proved to be worthwhile advice.
Daunting though this might seem, recruit people
into your business who are capable of working in
a much bigger company. Surrounding yourself
with highly experienced people will rapidly accel-
erate the growth of your business. Smart entre-
preneurs also over-recruit, especially during an
economic downturn. When conditions improve,
theyre able to absorb the increased volume.
Theres another reason for wise and careful
recruitment: it helps you recognise the need for a
succession plan. As an entrepreneur, youve been
integral to the growth of your business. But you
shouldnt get to the point where youre indispen-
sable nor allow yourself be handcuffed in by
someone else who thinks the company cant
operate without you. So its very important to
think about a succession plan and build a broader
set of shoulders. The earlier, the better.
If youre planning an eventual exit, be clear who
youre growing your business for. If youre consid-
ering a trade buyer, think about what they might
be looking for and identify the processes at which
you want to excel. Maximuscle, the sports nutri-
tion company, understood this extremely well,
both when we invested in and exited the busi-
ness. Have an eye for the long-term goal, plan
how you get there and make sure you deliver.
At Piper, we often use the Olympic analogy a
split second better makes you a winner. If you
focus on the things that will make your business
stronger than your competitors, and dont get
pulled down blind alleys, youll stand a far greater
chance of long-term success. If youre satisfying
customer need, people will keep coming to you.
They dont suddenly stop wanting things just
because theres a recession as long as you
ensure that what you offer is what they want.
Libby Gibson is co-founder of Piper, a specialist
in consumer brands, which has helped grow busi-
nesses such as Boden, Las Iguanas and
Maximuscle. www.piperprivateequity.com
HEN the shadow business secre-
tary makes a speech calling your
seven-month old business the
lifeblood of the lifeblood of our
economy, its fair to say youve made quite
an impression. This happened to the co-
founders of MarketInvoice Anil Stocker and
Charles Delingpole two weeks ago: Labours
Chuka Umanna described their business as
turning straw into gold. Certainly, for
small and medium-sized businesses (SME)
at the moment, raising short-term finance
is no easy matter.
The magic comes in the form of an
online trading platform. SMEs in need of
cash can use it to auction their invoices on
for one or two per cent of eventual face
value plus a small data processing fee to
MarketInvoice this gives SMEs instant liq-
uidity and the buyers a healthy return.
There isnt really a substantial medium-
sized business market in the UK, says
Stocker. This gives huge power to big com-
panies and allows them to exert punishing
payment terms over small businesses. In
some cases, 120 days.
Stocker and Delingpole got the idea after
going on what they fondly called their
SME road trip last year. After quitting
their City jobs (Stocker worked for Lehman
Brothers and Delingpole for J.P. Morgan),
they went looking for a small business to
buy. Initially I thought we should buy a
business. We travelled all over the country
speaking to people until we concluded that
you bore as much risk buying a small busi-
ness as you did starting your own. We kept
hearing the same list of problems: cash
flow, punitive payment terms, the banks
arent lending which gave us the idea.
Delingpole says: We were advised by our
investors that we should stick to areas that
built on our unique selling points. Ours
were the internet and finance. We had
both worked in the City and I had already
set up and sold an internet business when
I was younger. Indeed, Delingpole founded
The Student Room website when he was 17.
They credit much of their success to play-
ing to these strengths. Working in the City
gave us the contacts, credibility and capital
to get going, says Delingpole.
The pair chose to involve lots of investors.
Yeah, we gave up a little equity for each,
but having the investors was vital for devel-
oping a track record. They were our first
buyers, says Stocker. Strangely, they found
that persuading SMEs to start selling was
the hardest bit. They either said great
idea but I dont need it right now; or they
were locked into a contract with their
bank. Thankfully, it only took three
months for the situation to change.
Theyre now up and running with 30
SMEs and 15 investors, channelling over
3m worth of funding since they launched.
Were a team of six at the moment, but
were growing really fast.
Where do they see themselves in five
years? The eBay for invoices sounds weird,
but thats what were after, says Stocker.
Company name: MarketInvoice
Number of staff: 10
Job title: Co-Founders and directors
Age: Anil: 27 Charles: 28
Born: Anil: Zurich, Switzerland
Charles: Birmingham, UK
Lives: Anil: Old Street Charles: Victoria
Studied: Anil: Economics, Trinity College,
Charles: Politics, Trinity College, Cambridge
Drinking: Anil: Ice cold Sapporo
Charles: Green tea
Anil: The Master and Margarita by Mikhail
Charles: The Snowball by Warren Buffett
Idol: Anil: Nelson Mandela
Charles: Warren Buffett
Talents: Anil: Selling the dream
Charles: Making stuff work
Favourite business book:
Anil: Delivering Happiness by Tony Hsieh
Charles: Dancing with the Bear by Roger
Motto: Anil: Even a journey of a thousand miles
starts with a single step.
Charles: 1% inspiration, 99% perspiration.
First ambition: Anil: Create something that
outlives me.
Charles: To start a company.
They hit the road for an
idea thats on the money
Charles Delingpole (left) and Anil Stocker (right) have set up an eBay for invoices Pic: Laura Lean
Angel investors and venture capitalists are hesi-
tating to invest in digital content intermediaries
(DCIs) as the US government contemplates
new, tougher rules on pirated digital content.
Under the US House Judiciary Committees pro-
posed Stop Online Piracy Act a website could
be subject to fines and penalties if its users
uploaded pirated content. The Booz and
Company study found that more than 70 per
cent of the angel investors and venture capital-
ists surveyed would think twice before putting
money into DCIs. They currently invest more
than $40bn annually in early-stage companies.
Floxx Media Group hosts a public hackathon
on 15 December from 12pm, in which they
will design, develop and launch a new applica-
tion after a 24-hour marathon session.
Established tech companies like Facebook and
Linkedin credit hackathons for creating some
of their greatest innovations. Earlier this year,
Skype purchased GroupMe, which was valued
at $85m despite being hashed together in a
24 hour hackathon. This hackathon is intend-
ed to not only make the development method
more popular in the UK, but also to promote
career possibilities in the field.
Despite the recent encouragement to boost
smaller and medium enterprises (SME) in the
UK, many entrepreneurs are not fully financial-
ly fit and are in need of a workout to get prop-
erly prepared or informed to knowledgeably
start up a small business, new research from
Intuit, the makers of the accounting software
QuickBooks, finds. About a fifth of aspiring
and current SME owners dont have or plan to
create a business plan before launch, almost
half dont know the correct definition of gross
profit and over 60 per cent are unaware of
the 73,000 VAT threshold.
TS with a spirit of rebellion that three
girlfriends and I sip G&Ts, descending
over Las Vegas, the first leg of what we
planned to be a mammoth 30th birth-
day blowout road trip to the Grand Canyon,
Los Angeles, and the Big Sur. The trip is as
much about commemorating a key corner-
stone in our lives as having a holiday.
Travel changes when you hit this age,
you see. For better or worse even if you are
still single your holidaying life changes
forever as those who used to join on irre-
sponsible ventures suddenly have, well,
responsibilities. The far-flung backpacking
jaunts in cockroach-infested hostels dwin-
dle as a result, as do the bargain 190
weeks in Magaluf, and in their place come
couples holidays and villas in the south of
France. An upgrade of standards, certainly,
but also rather sensible. With that in mind,
we opt for UN-sensible and theres no bet-
ter place to do that than Las Vegas.
The Cosmopolitan, opened last year, is
one of the newest hotels on the strip. Its
part of The Marriot Groups new boutiquey
Autograph division: aimed squarely at the
Starwood/W Hotel demographic of
young, affluent, groovy types. (Albeit
with less boutiquey room numbers. This
property has a staggering 2,995.)
We pull up and the mood is set by a
convoy of white Hummers. Step inside
and its all sculptural chandeliers, pulsing
music and atmospheric lighting. The
rooms are, as youd expect, gigantic. The
look is 1960s meets retro nautical meets
Las Vegas glitz. There are two large flat-
screen TVs (you know, just in case), a kitch-
enette, Jacuzzi bath, and a balcony. Its all
pretty sexy.
Las Vegas, we discover, is all about the
daytime pool party. The Cosmopolitan has
two pools, both with an array of luxurious
cabanas, day beds, cooling mists and bars.
One is designed as a chill-out zone, while
the other features a stage for live bands,
several open-air pool tables and gaming sta-
Ticketed day clubs taking this to
harder core territory have also become
big news at all the major hotels. (Hugely
popular with visiting stag parties. Abs, biki-
nis, shots, hot tubs not for the faint-heart-
You need to give in to Las Vegas to really
enjoy it, and so we do. High points include:
Cirque du Soleil, brunch at Simon and the
Palms (staff wear pyjamas, its unlimited
and you can upgrade this to include
booze); shopping on a grand scale at
Crystals Mall, a giant architectural feat in
itself which also boasts North Americas
largest Louis Vuitton, finishing with
rooftop drinks at Mix lounge at THEHotel.
Add that to gambling (the Wynn), hotel
spotting (we loved the Venetian Canal) and
were ready to ship out.
The Grand Canyon is next. With a brief
detour to the Hoover Dam which is 30
minutes from Las Vegas we make it just
in time to catch a spectacular sunset. The
next day we dip in again for sunrise at five
AM (worth checking the time online, it
changes every day) before heading out.
The drive from Grand Canyon to Los
Angeles is eight hours and not to be trifled
with, but the scenery is genuinely breath-
taking. The Mojave Desert is mountainous,
Above: Sin City as
sun goes down.
Right: The Hyatt
Carmel Highlands,
Las Vegas, Big Sur and Los Angeles make
for a spectacular combination of driving
and luxury, says Lucie Greene
Anantara opens luxe resort in Koh Phangan
North of Koh Samui, youll find Koh Phangan tucked away at the base of a
lush mountain. Set amid towering coconut palms and steps from idyllic
Thong Nai Pan Noi beach, the resort has 44 private pool suites and villas
and an open-air spa. Snorkeling, archery, elephant trekking, and herbal
steam sauna are among other activities. anantara.com
Doing the Wild West in style
Lifestyle | Travel
Rocco Fortes first opening outside Europe: Abu Dhabi
Recently open, this 11-storey curved glass hotel is located near the exhibi-
tion centre and Yas Island. The 2,000sq m spa has separate male and
female facilities, indoor swimming pools, traditional wet and dry
Hammam and more, and there are no fewer than seven restaurants and
bars in-house. Opening offer from $330 p/n. www.roccofortehotels.com
Abercrombie & Kent launch airport concierge
The new service operates in 200 airports worldwide: perks include being
met directly from the plane and guided through security, customs and
immigration as well as luggage assistance, transfers in plus cars, city ori-
entation tours, and access to airport lounges even if a business or first
class ticket is not held. www.abercrombiekent.co.uk.
arid, and vast like driving on the moon.
Meanwhile trucks, freight, and passing
Harley Davidsons imbue the whole experi-
ence with a sense of real Americana.
Its also the perfect endurance test before
arriving at The Four Seasons Beverly Hills,
which turns out to be actual Los Angeles
paradise. With elegant palm trees, striped
loungers, fountains and topiary, the hotel
oozes quintessential Beverly Hills glamour.
We step out of our giant rental SUV into its
serene palm-treed drive and staff greet us
magically by name. The rooftop pool has
views of the Hills and even has an open-air
gym. The rooms are plush and tasteful
with all the puffy bathrobes and luxe toi-
letries you could wish for. The service is
also second to none. We love the hotels
complimentary Bentley car, which will
take you anywhere within a two mile
We opt for dinner at The Bazaar by Jose
Andres at the SLS Hotel in West Hollywood
(ultra-modern, and very El-Ay tapas) and
feast on deconstructed Caesar salads and
olive foam martinis. The next day we go to
Rodeo Drive, before Graumans Chinese
Theatre; the Hollywood sign and deter-
mined to spot a celebrity lunch in the
Chateau Marmont Hotel (Success! Katy
Perry sits next door).
Theres just enough time to take in the
volleyball beach crowd and skaters at Santa
-Cirque du Soleil: Acrobatics, drama and jaw dropping
stunts. From 70. www.cirquedusoleil.
-Crystals Mall: Is it a Getty museum? No, its a mall
and a fairly stonking one at that. Let loose with your
credit card. www.crystalsatcitycentre.
-Day Clubs: Hedonism by day. The Marquee, MGM
Grand, the Encore hotels and many others stage ticket-
ed venues. Observe the dress codes theyre strict.
-Eat: There are lots of great restaurants in Las Vegas.
We like STK at The Cosmopolitan, The CUT, Wolfgang
Pucks famed steak restaurant at The Palazzo
www.wolfgangpuck.com, and El Segundo, a fabulous
Mexican restaurant where they make the guacamole in
front of you with pestle and mortars.
-Drink: Mix Lounge, THEHotel, Madalaybay.com
-Bazaar at SLS: Worth it for the foie gras lollipops alone.
-Chateau Marmont: Celebs and moderately priced food,
in a grand setting. www.chateaumarmont.com
-Shopping: Melrose Avenue, The Grove (A-listers and
Abercombie-style shoppers). www.thegrovela.com
-Culina, The Four Seasons: The freshest cut fruit; organ-
ic muesli, waterfalls and palm trees make this a serene
brunch spot. www.culinarestaurant.com
-The Getty Museum: Perched high on this hill, its worth
it for the views of Los Angeles alone. Modernist archi-
tecture and world-famous gardens add to its splendour.
-Brophy Bros, Santa Barbara: Fresh rustic seafood on
the marina with views to the Santa Barbara mountains
in the distance. www.brophybros.com
-Mos Steakhouse Barbecue, Pismo Beach: Prime ribs,
authentic hickory barbecue, juicy steaks- its a hit with
the locals for a reason. www.smokinmosbbq.com
-Hearst Castle, San Simeon: In its heyday this mansion
entertained the whos who of Hollywood. The blue-tiled
Art Deco pool is a must-see. www.hearstcastle.com
-17 Mil Drive: Winding the Carmel coastline with views
of the Sequoias and beyond. www.pebblebeach.com
-Monterey Bay Aquarium: Sharks, whales, and squid the
size of your head. www.montereybayaquarium.com
Monica, then its off up the pacific
Its difficult to exaggerate the
beauty of Highway 1, from the
surfers that hug the Malibu coast
at sunset to the winding traverses of the
Big Sur with vast expanses of blue ocean,
cliffs and gleaming sunlight.
We spread the journey over a few days to
make the most of the central coast. First
up is Santa Barbara, an artsy seaside town
that makes a great spot for boutique
shopping. Next its Pismo Beach less
chichi, more red-neck. We hit the local
dive bar Harrys for a night of beer, pool,
and karaoke and stay in a cute boutique
motel, The Cottage Inn, by the Sea.
The next day its Hearst Castle, the
sprawling mansion built high on the hills
of San Simeon by publishing magnate
William Randolph Hearst, and then we
hit the road again.
Big Sur, a 90-mile stretch of road that
wraps the California coastline, is what
driving was invented for. Our car winds
up and down, with hills to the right, and
dramatic cliffs and ocean to our left. The
highway was built in the 1930s as part of
Roosevelts New Deal program and some
of the most spectacular parts are the pic-
ture-postcard bridges that cross the
coasts deeper indents.
We reach The Big Sur Hotel Hyatt
Carmel Highlands at dusk. The hotel,
sat high on the hills, offers brilliant views
of the coastline, now brooding in the blue
light with blustery winds. Inside the
main lobby, the bar and restaurant fea-
ture stunning floor-to-ceiling windows
and balconies overlooking the
ocean. The mood, meanwhile, is alluring-
ly cosy. Live jazz plays and billowing
leather sofas are placed in front of roar-
ing fires and candle-lit mantle pieces. (I
feel like Im in a Michael Bolton music
video but in a good way.)
The hotel has been designed as a series
of spread-out modern wooden cabins
integrated subtly in to the hillside. The
rooms feature king size beds, gargantuan
Jacuzzi baths and working fireplaces and
are connected by wooden walkways with
outdoor hot tubs and communal fire pits
dotted in between. We hit the hotels
Pacific view restaurant and indulge in
California steaks and red wine before bed.
Carmel (a chocolate box town with art
galleries and coffee shops) will be too sac-
charine for some but is worth a visit. We
take in the nearby iconic 17 Mile Drive, a
stretch of private residential land, which
takes you through some of Carmels pret-
tiest coastal spots. As a final stop, we visit
nearby Montereys world-famous
Aquarium, which features a series of jaw-
dropping exhibits and live sea life shows.
We find ourselves acting like excited chil-
dren, which makes an apt conclusion to
the trip. Our childhood, our twenties
and indeed those dodgy Magaluf half-
board deals may have passed, but it will
always be there, even if its relegated to a
different time entirely.
Rooms at the Cosmopolitan Las Vegas start at
$168, www.cosmopolitanlasvegas.com. Rooms at
the The Four Seasons, Beverly Hills, start around
$400. www.fourseasons.com. Rooms at the The
Big Sur Hotel- Hyatt Carmel Highlands, from
255, www.hyatt.com
Above: the Grand
Inset left: the rooftop
pool at the Four
Seasons Beverly Hills.
Right: one of the pools
at the Cosmopolitan
in Las Vegas.
ith the New Year just around
the corner, now is the perfect
time to start thinking about
where 2012 will take you. If
your resolution is to discover new
places be it the south coast of
England or South America the
Preferred Rewards Gold Card from
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getaway even more rewarding.
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track. Apply now and youll receive
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simply by spending 1,000 in your first
three months of Cardmembership.
Thats enough for two complimentary
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Whether youre going global or
planning something a little closer to
home, heres some inspiration on
must-visit destinations for the year
Wedged between the snowy Andes and
the sea, Santiago is an electrifying mix
of glitzy skyscrapers, picturesque open
spaces, renovated Beaux-Arts
neighbourhoods and blocks of galleries
and cafes clustered around the soaring
financial district. If youre looking to
sample the culinary scene, Astrid and
Gastn Acurio is well worth a visit for
its traditional Chilean sea bass and
Patagonian lamb. The charm of the city
is also visible via its long boulevards,
hillside lanes and leafy parks. Enjoy
breathtaking views from Cerro San
Cristbal which overlooks the town.
While youre there, try a cup of mote
con huesillo, a concoction of wheat and
peaches, which makes for a delicious
Representing France as European
Capital of Culture in 2013, Marseille is
one of the most exhilarating cities in
France. Explore the crooked, narrow
streets of the Quartier du Panier, the
oldest part of the city where the Greeks
built their temples. On the eastern
edge of the city is Parc Borly, a
peaceful oasis boasting a beautiful
lake, botanical garden, stunning rose
garden and 18th-century Chteau. And
if food is your thing, try to get up early
enough to catch the renowned daily
seafood and fish market at the Vieux
Port. For a different angle on the city,
visit the Arab quarter and wander past
locals selling spices and fresh almonds
in bulk in the rue d'Aubagne.
The American Express

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The Preferred Rewards Gold Card is offered by American Express Services Europe Limited. Registered Office: Belgrave House, 76 Buckingham Palace Road, London
SW1W 9AX. American Express Services Europe Limited is authorised in the United Kingdom by the Financial Services Authority under the Payment Services
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l Transfer points to over 10 major frequent flyer
l Two complimentary annual visits to more than 350
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Main picture: Marseille Harbour. Inset: Titanium Tower, Santiago, in front of the Andes. Picture: GETTY
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Turn your
travel dreams
into gold
Documentary telling the story of
how the Edinburgh-based Royal
Bank of Scotland fell from grace in
October 2008.
Cameras capture the contestants
outside the jungle, as they step back
into normal life after enduring the
physical and mental challenges.
The team presents a pre-Christmas
special, including a search for the best
gadget gift, the top five stocking fillers
and hi-tech festive lights.
7pmLive Monday Night Football
10.30pmNetbusters 11pmSPL
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5.30am-6amFIFA Futbol
7pmShow Jumping 8pmNFL
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International One-Day Cricket
12amEuropean Tour Golf 1am
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2.30amPGA Tour Classic
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7pmTable Tennis 8pmTest
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WWE: Late Night Afterburn
12amWWE: NXT 1amWWE
Vintage Collection 2am-4.15am
Live WWE: Late Night Raw
7pmLive Snooker: UK
Championship 10pm-11pm
6.30pmTalk of the Terrace
7.45pmLive Serie A 9.45pm
ESPN Kicks: Extra 10pm
Between the Lines 10.45pm
Pardon the Interruption 11.15pm
ESPN Kicks: Scottish Premier
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Pass 12amLive NFL Countdown
1.30amLive NFL 4.45amESPN
Game of the Week 5.15am-6am
Between the Lines
7pmCriminal Minds 8pm
Americas Next Top Model 9pm
Half Ton Teen 10pmCriminal
Minds 11pmBones 12amCSI:
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1.50amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
7pmDont Tell the Bride 8pm
Snog, Marry, Avoid? 8.30pm
Skin Deep: The Business of
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Mongrels 2.30amDont Tell the
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7pmHollyoaks 7.35pmHow I
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Desperate Scousewives 11pm
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7pmStorage Wars 7.30pm
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American Restoration 10pm
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Ancient Discoveries
7pmWhale Wars 8pmWheeler
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7pm18 Kids and Counting 8pm
Supernanny 10pmHospital
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Bringing Home Baby
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Back on the Frontline 10pmAn
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A Question of Sport 11.05pmJohn
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6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pm4thought.tv 8pmTurner
Prize 2011 8.30pmLandlords from
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Summer 12.40amLate Night Poker
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Michaelas Wild Challenge
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11 19
16 14 11
17 16
26 16
12 28
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
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.
1 Bend the knees and bow
in a servile manner (6)
6 Light-sensitive membrane
at the back of the eye (6)
7 Bellow (4)
9 Many-legged insect (9)
12 Italian operatic composer
(1813-1901) (5)
13 Large African antelope (3)
15 Respond (5)
18 Suite of rooms usually
on one oor (9)
20 Approach (4)
21 Feeling of ill-will arousing
active hostility (6)
22 Characterised by
insincerity, evasive (6)
1 Russian city on the
Vyatka River (5)
2 Exhausted (5)
3 Court order (4)
4 Sleep during
winter (9)
5 Ring-shaped
bread roll (5)
8 Vigorously active,
gymnastically (9)
10 Dark period (5)
11 Harden (5)
14 Cold vegetable
dish (5)
16 Boredom (5)
17 Linger (5)
19 Fail to hit (4)

9 5 8 4 9 1 6
4 3 2 5 1 7 5 9
1 7 9 8 4 2
1 2 4 6 3 1 3 7
2 6 9 8 7 8 6 9
6 7 1 3
2 4 1 9 4 6 7 8
9 7 5 8 3 2 4 1
9 3 1 2 7 3
1 5 3 7 5 9 8 6
4 8 2 1 5 2 1
The nine-letter word was
Lifestyle | TV&Games
NORTHERN Irelands Rory McIlroy
piled further pressure on European
Tour leader Luke Donald and ensured
a nailbiting climax to the season by
winning the UBS Hong Kong Open
McIlroys two-shot victory at
Fanling means he can deny Donald
the honour of becoming the first
man to officially top the US and
European money lists in the same sea-
son at this weeks Dubai World
To do so he will have to win the
lucrative season-ending spectacular
in the Middle East and hope that
Donald, who ended 10 shots adrift in
the Nedbank Golf Challenge yester-
day in South Africa, finishes outside
the top nine.
It meant a lot knowing that I had
to go out there and play well to keep
myself alive in The Race to Dubai,
probably to keep second place in the
World Rankings. To produce the sort
of golf I did today was very pleasing,
said US Open champion McIlroy.
That was one of the goals going
out today, to win this tournament
and keep myself in with a shout next
Thats very dependent on what
Luke does because hes got such a big
lead. If I can somehow get myself into
contention next week, you never
know. McIlroy, 22, chipped in from a
greenside bunker at the 18th to card a
final-round 65 and finish 12 under
par, two clear of Frenchman Gregory
Swedens Peter Hanson was a fur-
ther shot adrift, while Englands Ian
Poulter was one of three players tied
for fourth on eight under.
US PGA Tour winner Donald, mean-
while, ended five under par on his
return from a five-week break, finish-
ing seventh at Sun City, where fellow
Englishman Lee Westwood retained
his title at a canter.
Westwood could afford a one-over-
par final round of 73 and still finish
15 under, to stay third in the world
rankings behind Donald and McIlroy.
WOLVES manager Mick McCarthy
delighted in ruining his good friend
Martin ONeills day, as his battling
side deepened the woes the Northern
Irishman is poised to inherit.
Two goals from Steven Fletcher
cancelled out Kieran Richardsons
thumping opener in a match that
hinged on a controversial penalty
won and then missed by
Sunderlands Sebastian Larsson.
ONeill, appointed Black Cats man-
ager on Saturday, officially takes over
today but was in the stands at
Molineux to see his new team slump
to a fourth defeat in seven games.
McCarthy said: Im just glad Ive
made his job harder for him on
Monday morning. Im thrilled that
hes got a harder job than it looked
like for however many minutes here.
Martin is a pal of mine but I didnt
want to do him any favours.
Sunderland now lie 17th, just one
point above the relegation zone, but
could have climbed as high as 14th
had Larsson converted from the spot
to put them two goals ahead in the
72nd minute.
The Sweden midfielder made the
most of a touch from Jody Craddock
to swallow dive into the area, but was
not as successful with his kick,
Wolves goalkeeper Wayne Hennessy
saving smartly low to his left.
Sunderland caretaker manager
Eric Black justifiably called it the piv-
otal moment.
Emboldened, the home side surged
to the other end where Matt Jarvis
delivered an in-swinging cross from
the left that Wes Brown misjudged,
allowing Fletcher to power a header
down and past Kieren Westwood.
Eight minutes later Fletcher scored
his second of the match, and his 10th
in 15 league games, sweetly volleying
low past Westwood with his left foot
after a touch from Jamie OHara that
prompted accusations of handball.
Wolves make
pay penalty
Dubai showdown on cards as
McIlroy closes in on Donald
Sport 34 CITYA.M. 5 DECEMBER 2011
Fletcher took his tally to 10 goals in 15 Premier League games Picture: ACTION IMAGES

STOKE manager Tony Pulis toasted a

perfect week after following up
Europa League qualification with a
second consecutive Premier League
victory at Goodison Park.
A 15th-minute goal from Robert
Huth, the defender diverting Dean
Whiteheads shot past Tim Howard
from close range, was the decisive
moment in a game of few chances.
But neither a lack of entertainment
nor an injury to goalkeeper Thomas
Sorensen could spoil a satisfactory
afternoon for Pulis, who saw his side
climb to eighth.
It has been a great week for the
club. To get six points and to qualify
for the latter stages of the Europa
League is first class, he said.
We have had a dip of form, which
most clubs do, and we have shown a
lot of character and spirit the last
week and the result on Thursday
against Kiev was a fantastic result for
us. This was a real battling perform-
ance against a good Everton team.
Stoke had lost all previous fixtures
that followed this seasons
Continental away trips, but ended
that run yesterday, having reached
the last 32 of the Europa League on
Thursday evening.
Everton manager David Moyes,
meanwhile, criticised referee Lee
Mason but admitted his teams fifth
home defeat was not solely attributa-
ble to the official.
I thought the referee had a poor
game, Moyes. It is not the reason for
our loss far from it because that was
down to our inability to make and
take [chances]. But there was a lot
going on in the box and we got very
little of it.
Defender Johnny Heitinga came
closes to equalising in the dying
stages but could only make faint con-
tact with a whipped left-wing cross
and his glancing header skipped
harmlessly wide.
Before the match both sides paid
their tributes to former Wales manag-
er Gary Speed, who died last week,
with the ex-Blues captains father
Roger among those present for a
minutes applause.
Pulis joy as Huth completes Stokes perfect week
Brazil hero Socrates dies
FOOTBALL: Former Brazil captain
Socrates died yesterday, aged 57, after
an intestinal infection. The elegant mid-
fielder, who played in the 1982 and 1986
World Cups, was admitted to the inten-
sive care unit of a Sao Paulo hospital on
Friday. The ex-Corinthians, Botafogo,
Fiorentina, Flamengo and Santos player
suffered a stomach haemorrhage in
August caused by alcohol abuse. in 2004,
aged 50, Socrates made headlines by
aggreeing to a one-off appearance for
non-league side Garforth Town.
Blatter aims fire at English
FOOTBALL: Fifa president Sepp Blatter
has renewed his attack on his English
critics, claiming they are bitter at the
failed bid to stage the 2018 World Cup.
They thought that football should have
come home; the World Cup was theirs by
right, Blatter said. When they came
with David Beckham, Prince William and
Prime Minister Cameron, they were cer-
tain of winning. They got two votes.
Since then, they have looked for every
means to justify their defeat. Russia
won last years vote to host the 2018
tournament, with Qatar controversially
awarded the 2022 World Cup.
OSullivan knocks out Davis
SNOOKER: Ronnie OSullivan beat Steve
Davis 6-1 in a first-round clash of former
champions at the UK Championships in
York. World No1 Mark Selby eased into
round two with a 6-0 drubbing of Ryan
Day and will play Marco Fu next, after he
beat Stuart Bingham 6-4.
Pattinson shines on Test debut
CRICKET: Seamer James Pattinson took
5-27 on his debut as Australia beat New
Zealand by nine wickets in the first Test
in Brisbane. Pattinson, younger brother
of former England bowler Darren,
claimed a triple-wicket maiden as the
tourists slumped to 28-5, and although
Dean Brownlies 43 hauled them to 150
all out, Australia reached their target of
19, despite the early dismissal of Phil
Hughes, with one day to spare to take a
1-0 series lead.
FULHAM goalkeeper Mark Schwarzer
has warned his team-mates that
fatigue will not be an acceptable
excuse if their winless run continues.
The Cottagers host Liverpool
tonight in the Premier League, seek-
ing their first victory in five matches
and their first domestic triumph
since October.
Thursdays Europa League defeat at
FC Twente was their 27th match of an
already gruelling campaign that
began in June, but veteran Schwarzer
is in no mood for self-pity.
When people ask me about the
national team and the amount of
travelling and the number of games
that we play, for me its all about a
mental approach and a mindset, said
the 39-year-old.
Youve got a long time to recuper-
ate after youve finished playing.
When you talk about the demands of
the English Premier League, yes they
are tough. But youre playing in one
of the best leagues in the world and
do you expect any different?
Fulham are likely to be without
Damien Duff, after the Irishman was
injured in Holland last week, while
Liverpool will have to field a replace-
ment for midfielder Lucas Leiva, who
is out for the season.
Tiredness is
no excuse



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email sport@cityam.com
AN EMOTIONAL Rafael Nadal hailed
the best crowd of his life after a typi-
cally gutsy victory over Juan Martin
del Potro earned Spain a third Davis
Cup in four years, to the delight of a
22,000-strong support in Seville.
Nadal had to come from a set down
to defeat Argentinian No1 Del Potro 1-
6, 6-4, 6-1, 7-6 (7-0) and gain the hosts
an unassailable 3-1 lead with one sin-
gles match to spare.
Afterwards the world No2, who has
now on 20 consecutive Davis Cup sin-
gles matches, revealed he would skip
Spains defence next year in order to
play at the London 2012 Olympics.
I want a coherent calendar. So
next year, since its an Olympic year,
my participation in the Davis Cup is
impossible. Then we will think about
the future. For the time being, lets
enjoy today, he said. Today is one of
the most emotional days of my
career. After such a difficult year, this
was a spectacular finale to the season.
To win a final this way is
very special. We are very
grateful to all the peo-
ple of Spain. It was the
best atmosphere I have
experienced in my
The decisive match was
played out in a raucous
setting, with the
Argentinian contingent in
the Olympic Stadium also
making themselves heard,
to the degree that they
were asked to quieten
down by the umpire.
Knowing only victory
would keep Argentinas
hopes of a maiden title
alive, former US Open
winner Del Potro went on the offen-
sive in the first set and, despite being
broken at the first opportunity, then
roared through six straight games.
Nadal arrested his slump by taking
the second and third sets, before a
fourth that swung this way and that
until the tie-break, which the
Spaniard swept
through to seal the tri-
Spains victory
underlined their
recent dominance
of the competition,
having won all
five of their titles
since the turn of
the century.
Argentina, mean-
while, acquired
the dubious honour of
becoming the first coun-
try to lose four finals.
Nadal signs off with Davis Cup victory

SARACENS director of rugby Mark

McCall blasted his players for a below-
par performance, despite keeping the
pressure on Premiership leaders
Harlequins with victory over London
Fly-half Owen Farrell kicked five
penalties to edge out the Exiles, for
whom Tom Homer and Daniel
Bowden kicked penalties and David
Paice scored a late try to secure a los-
ing bonus point.
With a high-profile Heineken Cup
clash against Ospreys at Wembley
looming on Saturday, McCall made it
clear the domestic champions would
have to improve significantly in their
next outing.
We defended pretty well in parts,
scrambled well in others when we fell
off tackles, but it was a disappointing
match, a scrappy match and we are
disappointed with our first half per-
formance, he said.
We were not up to our usual stan-
dards in certain areas and well defi-
nitely be looking at that during the
week. Ospreys beat Munster on the
weekend and will offer a big chal-
lenge. But we have played six games
at Wembley and won five of them,
our players really enjoy their outings
there, as do our supporters.
Irish head coach Toby Booth admit-
ted the clinical kicking of Saracens
had proved the difference, but called
for the officials to work better to
improve what he depicted as the lot-
tery of scrummaging.
Right now, its a bit like those
numbers that come out on balls late
on a Saturday night, said Booth. I
believe there is a degree of guessti-
mation when it comes to scrums and
who is in the right and the wrong.
McCall not
by sloppy
HARLEQUINS captain Chris Robshaw
declared his unbeaten side ready to
test themselves in a double-header
with European super-powers
Toulouse after clinching a 14th suc-
cessive win of the season.
Tries from centre Matt Hopper, full-
back Mike Brown and flanker Luke
Wallace maintained the south
Londoners flawless start to the cam-
paign and kept them nine points
clear of champions Saracens in the
Four-time European winners
Toulouse are the next threat to Quins
perfect record, but yesterdays hard-
fought victory at Adams Park means
Conor OSheas men will approach
the Heineken Cup games in rude
They are the big guns you want to
play against in rugby, said Robshaw,
whose form has seen him touted as a
possible successor to Lewis Moody as
England captain, despite remaining
You have really got to test yourself
and find out what you are about.
Everyone is really looking forward to
it. We will enjoy tonight and rest up
and look forward to it next week.
Hoppers seventh-minute try, con-
verted by fly-half Nick Evans, gave
Quins a flying start, but Wasps
refused to lie down and cut the half-
time deficit to just one point with a
brace of penalties from No10 Nick
The leaders found another gear
after the interval, however, with
Brown collecting his own chip before
touching down and then Wallace
latching onto a Danny Care kick to
score and close in on a 10th league
win. There were still twists to come,
Hoppers sin-binning preceding a
Wasps revival marked by tries from
full-back Hugo Southwell and wing
Tom Varndell, but they were kept at
arms length by Robinson twice hit-
ting the woodwork.
Wasps boss Dai Young, who paid
tribute to veteran England hooker
Steve Thompson, who retired on
Saturday after just one game for the
club, said: I think you could see why
they are top. They had three opportu-
nities and they took them all.

Rafael Nadal (SPA) beat Juan Monaco
(ARG) 6-1, 6-1, 6-2
David Ferrer (SPA) beat Juan Martin del
Potro (ARG) 6-2, 6-7 (2-7), 3-6, 6-4, 6-3
David Nalbandian and Eduardo Schwank
(ARG) beat Fernando Verdasco and
Feliciano Lopez (SPA) 6-4, 6-2, 6-3
Rafael Nadal (SPA) beat Juan Martin del
Potro (ARG) 1-6, 6-4, 6-1, 7-6 (7-0)
Spain win 3-1
Ruthless Quins warm
up for European test
Harlequins 10 10 0 0 295 167 43
Saracens 10 8 0 2 218 163 34
Exeter 10 5 0 5 195 202 25
London Irish 10 4 1 5 253 227 25
Mike Brown scored Quins second try Picture: ACTION IMAGES

A SIMMERING rivalry that has already

delivered fireworks this season is
poised to be reignited after
Manchester City were drawn against
neighbours Manchester United in the
FA Cup third round.
Holders City, who thrashed United
6-1 at Old Trafford in October, could
now inflict more misery on them by
dumping them out of the FA Cup at
what is the first hurdle for top-flight
Sir Alex Fergusons men will view it
as an ideal chance to avenge their
humiliation, with the bonus of ensur-
ing Roberto Mancinis upstarts can-
not complete a domestic treble.
City currently top the Premier
League and last week reached the
semi-finals of the Carling Cup, a com-
petition United bowed out of after a
shock home defeat to Championship
side Crystal Palace.
The clash between Englands two
leading teams is the standout fixture
from the draw and one of only two
all-top flight games, the other being
Blackburns visit to Newcastle.
Chelsea manager Andre Villas-Boas
will enjoy his first taste of FA Cup
action when they host Portsmouth,
winners in 2008 who have since
dropped into the Championship
amid serial financial catastrophes.
Resurgent Arsenal, back up to fifth
in the table after a horror start to the
campaign, entertain Leeds, who they
needed a replay to overcome last sea-
son, in a repeat of the 1972 final.
High-flying Tottenham, who sit
third following a run of six consecu-
tive league wins, will be confident of
negotiating the visit of Cheltenham,
despite the League Two sides strong
Fulham meet League Ones run-
away leaders Charlton in a London
derby, while QPR travel to MK Dons,
West Ham are away at Sheffield
Wednesday and Liverpool will meet
Southend or Oldham at Anfield.
Tigers back: Woods wins
for first time in two years
FORMER World No1 Tiger Woods
finally ended the longest barren spell
of his distinguished professional
career last night when he won the
Chevron World Challenge more
than two years after his last victory.
Woods, who dropped outside the
top 50 in a desperate spell that fol-
lowed the break-up of his marriage,
showed flashes of his old self to beat
fellow American Zach Johnson in
Trailing Johnson by one shot with
two holes to play, Woods made back-
to-back birdies to card a final-
round 69 and finish on 10
under par, one stroke
better than his playing
It feels awesome,
whatever that is, said
Woods (right) on end-
ing his 749-day wait for
a title. It feels great. It
was a lot of fun coming
down the stretch. Zach put a
lot of pressure on me. Then I made
two good putts.
It was Woodss first win since the
Australian Masters in Melbourne on
15 November 2009. Days later alle-
gations of infidelity emerged,
precipitating a scandal that
irrevocably changed his
squeaky-clean image.
Those personal prob-
lems and injuries had
hampered him since, but
signs arose in recent weeks
Woods was rediscovering the
touch that brought him 14
Majors. He helped the American
team win the Presidents Cup, with
his 4&3 win over Aaron Baddeley rem-
iniscent of vintage performances.
ENGLAND and Harlequins star Nick
Easter admits he may have been the
player who uttered the notorious line
Thats 35k down the toilet follow-
ing the World Cup quarter-final exit
to France in October.
But the No8 insists that even if he
did make the remarks, they would
have been meant facetiously and
that money played no part in his
motivation at the tournament.
I dont specifically remember say-
ing it but its possible I did, especially
if a number of players have said so,
said Easter. It is the kind of facetious
thing I say and people who know me
know this. The infamous comments
emerged in the Rugby Players
Associations review of the dismal
World Cup, which was compiled
using anonymous feedback from the
majority of players but subsequently
leaked to a national newspaper.
Senior players came in for heavy
criticism, with some, such as captain
Lewis Moody, accused of letting com-
mercial interests interfere with the
tournament. Easter, who did not play
as Quins maintained their
Premiership lead at Wasps yesterday,
added: I cant understand whoever
reported this would believe this was
part of my motivation.

I may have made 35k

toilet quip, admits Easter
rivals thrown
together by
FA Cup draw


CRUEL FOR CATS | ONeill watches as Sunderland crash at Wolves

SUNDERLANDS new manager Martin ONeill (inset) received an unwelcome reminder of the scale of the task he will inherit when he offi-
cially takes over this morning when his side lost yesterday at Wolves. The Black Cats, including Nicklas Bendtner (pictured above) squan-
dered a lead and missed a penalty before collapsing to two Steven Fletcher goals, leaving them 17th and one point above the Premier
Leagues relegation zone. ONeill, who revealed he was childhood Sunderland fan, said: We had a great season last season and a wee bit
of a disappointing start this time, but we hope with a little bit of luck we can turn things around. MATCH REPORT: P34 Pictures: PA
Manchester City v Manchester United
Chelsea v Portsmouth
Arsenal v Leeds United
Tottenham Hotspur v Cheltenham Town
Fulham v Charlton Athletic
Milton Keynes Dons v Queens Park Rangers
Sheffield Wednesday v West Ham United
Liverpool v Southend Utd/Oldham Ath
Everton v Tamworth
Bristol Rovers v Aston Villa
Ties to be played weekend of 7/8 Jan