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Boris slams
European
Tobin tax
BORIS Johnson has launched an all-
out attack on nine EU states after
they called for a new financial trans-
actions tax to be introduced urgently.
The mayor promised to fight the
proposal, which would cause serious
damage to Londons economy.
Addressing the countries Johnson
declared: Non, nein, no! I will not
allow jobs, growth and the liveli-
hoods of Londoners to be jeopardised
by an unholy alliance of European
states who view financial services as
an easy target, despite the fact that it
is crucial to the economic recovery of
its members.
Last Tuesday the finance ministers
of France, Germany, Austria, Belgium,
Finland, Greece, Spain, Portugal and
Italy wrote to Denmark holders of
the EU Presidency to petition for the
fast-track introduction of a 0.1 per
cent tax on stocks and 0.01 per cent
on derivatives trading.
Johnson said: Do they not under-
stand that our crucial wealth
providers will be on the first flight
out to the US and Far East if their ill
thought out plans succeed?
But Labour mayoral candidate Ken
Livingstone argued: Boris Johnson
spends more time defending the
interests of the wealthiest bankers
than fighting for ordinary Londoners.
Unemployment in the capital is
rocketing and Londoners are feeling
squeezed, yet the Mayor refuses to call
on the banks to do more to fulfil their
obligations to the rest of society.
BY JAMES WATERSON
POLITICS

MOODYS last night threatened the

UKs coveted triple-A credit rating by
moving the country to a negative out-
look.
This means the UK now has a one in
three chance of a downgrade in the
next 12 to 18 months.
The ratings agency blamed its
actions on the increased uncertainty
regarding the pace of fiscal consolida-
tion in the UK due to materially
weaker growth prospects.
It also warned that economic head-
winds could jeopardise the govern-
ments goal of cutting the debt to GDP
ratio, which looks set to peak at 95 per
cent in 2014 or 2015 higher and later
than other countries with a top rating.
The agency said that the high risk
of further shocks in the fragile
Eurozone also put the UKs debt reduc-
tion plans at risk, given its trade and
financial links.
Moodys verdict is a significant blow
for chancellor George Osborne, who
promised in his 2010 manifesto to safe-
guard Britains gold-plated rating
through the coalitions austerity plans.
Osborne said last night: This is
proof that, in the current global situa-
tion, Britain cannot waiver from deal-
ing with its debts.
The chancellor claimed that his aus-
terity measures were the only thing
protecting Britain from an immediate
downgrade, saying this is a reality
BY KASMIRA JEFFORD
UK ECONOMY

www.cityam.com FREE
check for anyone who thinks Britain
can duck confronting its debts.
Indeed, Moodys said the govern-
ments move to cut spending more
quickly last year was a reason for keep-
ing Britains top rating. It also said the
UKs low refinancing risk and relative-
ly strong banking sector work in our
favour.
Austria and Frances triple-A credit
ratings were also put on negative out-
look by the agency yesterday.
Moodys also lowered the ratings of
Italy, Portugal, Slovakia, Slovenia and
Malta by one notch and slashed
Spains sovereign rating by two notch-
es from A1 to A3.
The outlook on the Bank of
Englands triple-A debt rating was also
downgraded to negative, in parallel
with the UK.
However, Moodys said the
European Financial Stability Facility
(EFSF), the single currencys bailout
fund, has not been downgraded,
despite it being previously linked to
Eurozone sovereigns own ratings.
Moodys left the triple-A ratings of
Denmark, Finland, Germany,
Luxembourg, Netherlands and
Sweden unchanged and also left
Belgium, Estonia, and Irelands ratings
untouched.
The euro and sterling fell against
the dollar after the news last night.
EUROZONE: P4-5
Issue 1,570 Tuesday 14 February 2012
Certified Distribution
02/01/12 till 29/01/12 is 92,258
ABU QATADA FREED
WHY THE REAL COST IS
TO THE REPUTATION OF
UK PLC THE FORUMP24
VALENTINES DAY S.O.S.
IF YOUVE LEFT IT TOO LATE,
PANIC NOT: CHECK OUT OUR
EMERGENCY GUIDE P31
BUSINESS WITH PERSONALITY
Chancellor George Osborne defended his budget plans after the outlook change by Moodys Picture: GETTY
MOODYS PUTS UK
ON CREDITWATCH
News
2 CITYA.M. 14 FEBRUARY 2012
Obama taxes
to target rich
TAX HIKES amounting to an extra $1.5
trillion (950bn) over the next decade
were proposed yesterday by President
Barack Obama.
He called for increased taxes on cap-
ital gains and dividends, as well as a
Buffett rule to increase taxes on
households earning over $1m per year.
Bush-era tax breaks will be allowed
to expire, hitting those earning over
$250,000, and the maximum rate of
income tax will rise to almost 40 per
cent in 2013, from 35 per cent now.
We built this budget around the
idea that our country has always done
best when everyone gets a fair shot,
Obama said. It rejects the youre on
your own economics that have led to a
widening gap between the richest and
poorest Americans.
Although the plan includes $4 tril-
lion in spending cuts, it also requests
$800bn more spending on public sec-
tor workers and infrastructure, and
would still let the national debt grow
by $6 trillion over the next decade.
However, the plan has little chance
of making it through Congress or the
Republican-controlled House of
Representatives.
This proposal isnt really a budget
at all. Its a campaign document, said
leading Republican Mitch McConnell.
Its bad for job creation and it will
make the economy worse.
BY TIM WALLACE
US POLITICS

HONDA TO ACCELERATE OUTPUT IN

EUROPE
Honda says it will nearly double its
production of cars in Europe as it
seeks to reduce its reliance on
imports form Japan and recover from
a disastrous year. The carmakers
European boss said that Honda aimed
to increase production at its main
European plant in Swindon to
180,000 in 2012, up from 97,000 last
year.
SMALL SHOPKEEPERS BENEFIT AS BIG
CHAINS RETREAT
Independent retailers have reported a
surprise sales boost as national retail
chains continue to retreat from the
high streets. In the last quarter of
2011, more than half of small shop-
keepers surveyed by the British
Independent Retailers Association
reported higher sales than the same
period last year.
CAR TRADE DEFICIT IS LOWEST FOR 36
YEARS
Britains trade deficit in cars is at its
smallest since 1976 as the countrys
automakers profit from buoyant over-
seas demand for their vehicles,
unpublished official statistics show.
TEPCO TOLD TO CEDE OWNERSHIP FOR
FUNDING
Japans government has threatened
to withhold a 1 trillion yen financial
rescue of Tokyo Electric Power , owner
of Fukushima Daiichi nuclear power
station, unless the struggling utility
allows itself to be nationalised.
BANKING CHIEF FAILED TO DISCLOSE
2M SHARES DEAL
Jaspal Singh Bindra, the Hong Kong-
based chief executive of Standard
Chartereds Asia business is facing a
possible investigation by the
Financial Services Authority after fail-
ing to disclose a 2m shares deal to
the bank for more than three weeks.
CITY OFFICE SPACE IS SHRINKING
FAST
Job cuts and fears of another reces-
sion are causing large businesses to
cut the amount of office space they
occupy in Londons Square Mile. A
report by DTZ shows a space efficien-
cy drive by tenants has led to a 7.3
per cent drop in occupancy costs.
SONY AND APPLE ANGER WHITNEY
HOUSTON FANS OVER ALBUM PRICE
HIKE
Sony and Apple were heavily criticised
yesterday after the cost of buying
Whitney Houstons greatest hits
album nearly doubled shortly after
her death over the weekend. The price
of the singer's Ultimate Collection
jumped to 7.99 from 4.99 on iTunes,
although it is now the original price.
KUWAITS CENTRAL BANK BOSS
SHEIKH SALEM ABDULAZIZ AL SABAH
QUITS AFTER CRITICISING STATE
The governor of the Central Bank of
Kuwait has quit amid apparent dis-
agreements over the governments
spending policies.
EX-BEAR HEDGE-FUND MANAGERS
SETTLE SEC CHARGES
Two former Bear Stearns hedge-fund
managers agreed with the Securities
and Exchange Commission to settle
civil-fraud charges for a total of
$1.05m. The two managers of the
Bear funds also agreed to securities-
industry bans.
DEUTSCHE DEAL ON KIRCH IS IN THE
WORKS
Deutsche Bank is closing in on an
agreement to pay about 800m to set-
tle decade-old claims that a former
chief executive officer helped drive
German media company Kirch Group
into bankruptcy, according to people
familiar with the negotiations.
WHAT THE OTHER PAPERS SAY THIS MORNING
Coalitions crazy credit contradiction
YOU cant have lending without bor-
rowing. They are the two sides of the
same coin. Yet try telling that to those
who, in the same sentence, want more
lending yet also want the UK to
deleverage. As contradictions go, it
takes some beating.
But this entire debate is disturbingly
muddled. Two different concepts are
mixed up: net lending the increase in
debt after accounting for repayments
and gross lending which tallies up
new loans and doesnt account for the
repayment of previous loans. Unless
you ban people from paying back
debts, nobody can control net lending
banks and politicians can only
impact gross lending, and even then
really only have influence on the
potential supply of new loans (unless
you force people to accept loans, or
increase their untapped facilities, such
as overdrafts, without telling them,
and classify it as an increase in credit).
The Merlin deal, which supposedly
fixed targets for lending, the results of
which were published yesterday, was
always a joke on that the Labour
party is right, albeit for the wrong rea-
sons. The agreement was defined in
such a way that it was never meaning-
ful. It was a preposterous attempt by
the Treasury to centrally plan credit
without actually doing anything about
it. At least it was never going to trigger
another epidemic of sub-prime lend-
ing, which is what it sometimes seems
this government would like (even
though the crisis was caused by too
much cheap money lent to the wrong
people). The Treasurys forthcoming
attempt at boosting small business
loans via credit easing could mean
loans that now get turned down
because they are deemed too risky will
happen, backed by controversial new
guarantees from taxpayers.
So given that retail banks make
money from lending, why arent we in
a new credit bubble? Why arent the
banks doing what so many people
want, and lending like crazy? The
answer is two-fold: the demand for
credit is down cautious individuals
and firms are deleveraging. The supply
of credit is also being restrained. UK
banks have rightly realised that they
must be safer. Foreign lenders have
partly withdrawn from the UK;
finance is deglobalising. And official
banking policy as devised by Basel,
the EU, the FSA and so on is to make
banks hold more, higher quality capi-
tal and maintain increased liquidity.
Because banks need to make a cer-
tain return on their capital to be
viable, and cant lend as much as they
did before for every given unit of capi-
tal, this is reducing the supply and
increasing the cost of credit. Long-run,
this makes banks safer; short-run, it
constrains the economy and the
money supply. On top of that, lending
to small businesses is deemed by regu-
lators higher risk than other kinds of
lending so banks are forced to hold
more capital against loans to small
firms, making lending to them even
less profitable. Marginal loans will no
longer be viable and wont happen. Yet
a government that claims to want to
boost small firms has signed up to this.
The capital adequacy rules are
designed to encourage some lending
and discourage other kinds. They are
working too well. If politicians are real-
ly worried about the availability of
credit for small firms, they should sus-
pend the rules not embark on QE or
credit easing, which merely address
the consequences, rather root causes,
of the problem, and guarantee nasty
side-effects. The current situation is
one giant, preposterous contradiction.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GOLDMAN SACHS has promoted
David Dusty Philip to co-head of
investment banking for industrial
companies, as incumbent George
Mattson retires.
Philip will work alongside fellow co-
head Alex Dibelius, with Mattson stay-
ing on for an unspecified handover
period, Goldman said in a memo.
Philip was previously co-head of
Americas mergers and acquisitions.
New York-based Mattson, who has
been with the bank for 18 years, start-
ed as an associate in investment bank-
ing before being made partner and
head of the global industries group in
2002.
He advised Tyco last year on its
break-up and United Technologies on
its $16.5bn bid for Goodrich.
The bank has also promoted Clare
Scherrer, head of the industrials group
in EMEA, to the additional role of chief
operating officer of the global indus-
trials group.
BY MARION DAKERS
BANKING

Goldman dealmaker retires

Goldman, led by Lloyd Blankfein, has replaced George Mattson Picture: GETTY
NEWS | IN BRIEF
BHP and Rio spend $4.5bn on mine
BHP Billiton and Rio Tinto have approved
plans for a $4.5bn (2.8bn) expansion of
the Escondida mine in Chile, the worlds
biggest copper mine, where BHP said
this morning the ore reserve estimate
has been increased by 25 per cent. BHP,
operator of the mine, plans to spend
$2.6bn on two projects to boost output
at the mine, while Rio's share of the proj-
ects is $1.4bn. The projects are designed
to give the partners access to higher ore
grades, with a new concentrator plant
and mineral handling system that will
boost production to more than 1.3m
tonnes a year by June 2015.
Volcker: rule wont hit UK bonds
Former Federal Reserve chairman Paul
Volcker last night insisted a proposed
ban on proprietary trading by US banks
named the Volcker Rule after him
would not threaten the UK government
bond market. The UK has voiced concern
that the Volcker rule would disrupt sov-
ereign bond markets. But Volcker wrote
in the FT: The simple fact is that Dodd-
Frank specifically permits both market
making in response to customer needs
and underwriting.
EDITORS LETTER
ALLISTER HEATH
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
www.pcc.org.uk
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of City A.M. Please ring 0207 015 1230, or email
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President Obama
wants a Buffett rule
to increase taxes for
households earning
over $1m a year
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
W W W . C I T Y A M C A R E E R S . C O M For the best jobs visit:
DAVID Cameron will today announce
plans to reduce insurance premiums
by cutting red tape, reducing legal
bills and tackling the high number of
spurious claims.
Proposals include a plan to reduce
the number of whiplash claims by
enforcing a higher evidence thresh-
old for injuries and cutting the 1,200
fee that lawyers can earn for small
personal injury cases.
He also wants to assist business-
es facing trivial claims by extend-
ing the rigorous road traffic
accident claims process to cover
employer liability and public
liability insurance.
The Prime Minister
has summoned
Britains leading
insurers to
Downing Street to discuss how such
changes in government policy can be
reflected in real decreases in the pre-
miums paid by consumers.
Over 1,500 whiplash claims are
made every day in Britain. According
to the Association of British Insurers
(ABI) this costs the industry 2bn and
adds 90 to the average car insurance
premium.
David Cameron will say: I am
determined to tackle this damag-
ing compensation culture
which has been pushing up
premiums.
Downing Street confirmed
that companies represented at
the summit will include
Admiral, Aviva, AXA, Royal
Bank of Scotland,
USwitch and the Co-
operative. The ABI,
Health and Safety
Executive and
Federation of
Small Businesses
will also be pres-
ent.
Cameron calls
on insurers to
cut premiums
APPLES shares topped $500 for the
first time ever yesterday, in a new
milestone that underscores the tech-
nology giants place as the worlds
most valuable company by market
value at around $460bn.
The companys shares have surged
by more than 20 per cent so far this
year, after the success of its iPhones
and iPads helped the group post
record-breaking quarterly profits last
month of $13.1bn (8.4bn).
The California-based firm recently
overtook oil giant Exxon as the
worlds most valuable company.
Rival technology firm Google has a
market cap of $198m and Microsoft
of $256m, making Apple bigger than
both companies put together.
Meanwhile, the computing giant
said it has agreed to let a US non-prof-
it labour group inspect working con-
ditions at its main contract
manufacturers, including Foxconns
plants in southern China.
The Fair Labor Association will
audit several suppliers and interview
thousands of employees, as Apple
attempts to counter criticism that it
was glossing over problems at these
facilities.
Apples shares closed up 1.86 per
cent yesterday at $502.60 after reach-
ing $503.83 earlier in the day.
Apples shares
pass $500 for
the first time
BY JAMES WATERSON
INSURANCE

TECHNOLOGY

News
3 CITYA.M. 14 FEBRUARY 2012
EMPIRE STATE OWNER FILES FOR IPO
ORDINARY investors will soon have the chance to own a piece of an iconic US skyscraper,
after Empire State Realty Trust, owners of the Empire State Building, yesterday filed to sell
up to $1bn of its Class A common stock in an initial public offering. The proceeds will be
used to pay existing stakeholders in the buildings who chose to receive cash in exchange for
their interests, and to repay debt. The Malkin family bought the property in 2002 but only
gained total control of the 102-story building in 2010 after much wrangling. Picture: GETTY
David Cameron
has called for
lower premiums.
POLITICAL grumblings in Greece and
Germany cast doubt over prospects of
a successful bailout agreement yester-
day, marring the relief from an auster-
ity deal passed by Greeces MPs on
Sunday.
Despite parliaments endorsement,
the main party leaders must sign a
pledge that they will stand by the
measures if victorious in upcoming
elections one of several potential
banana skins.
In Germany the mood remains cyni-
cal over whether the Greeks will deliv-
er meaningful reforms and cuts.
Now we need to wait and see what
comes after the legislation, economy
minister and deputy Prime Minister
Philipp Roesler said. We have taken
one step in the right direction but we
are still far from the goal.
His colleague Wolfgang Schaeuble
has warned: Greek promises arent
enough for us anymore.
Doubts have emerged that conserva-
tive leader Antonis Samaras may
refuse to submit a written pledge.
Samaras, who has been accused of crit-
icising austerity measures as an elec-
tioneering tactic, appeared to suggest
that Greece will seek to renegotiate
the deal.
He urged fellow MPs to support the
deal so that we can have the possibili-
ty tomorrow to negotiate and change
Greek-German
threat to new
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BY JULIAN HARRIS
EUROZONE

News
4 CITYA.M. 14 FEBRUARY 2012
THE EUROPEAN Central Bank kept
its controversial government bond
purchases to an absolute minimum
last week, spending less than 150m
for the third week running and
shrugging off anxieties surrounding
Greeces strained debt deal.
The ECB has all but halted its pur-
chases of troubled Eurozone debt
over the last month and a half, fol-
lowing both a substantial improve-
ment in key Eurozone bond markets
and the emergence of calls for it to
take losses on its Greek bonds.
Last weeks 59m worth of pur-
chases represents another token sig-
nal that the programme is still
operational and edges the amount
the ECB has spent since starting the
purchases back in May 2010, up to
219.5bn.
ECB keeps bond
purchases low
EUROZONE

A DONE DEAL? THE NEXT STEPS FOR THE GREEK BAILOUT PLAN
Its all in the detail
Greeces government must persuade
international lenders that it has
detailed 325m of additional cuts,
on top of existing measures and
that its political leaders pledge to
carry out the austerity reforms.
Private bond holders await
A deal for private debt holders to
take a 70 per cent haircut has been
discussed already yet not finalised.
A deadline of 17 February has been
mentioned, yet last month an earlier
deadline was set for yesterday.
That deadline was ignored.
Going global with the IMF
In faraway Mexico City, ministers
and central bank chiefs from the
G20 are expected to meet. If the
Eurozone has pledged more funds
the bailout, IMF boss Christine
Lagarde may raise more funds from
outside the euro area.
1 March a deal is due
EU leaders are scheduled to hold a
summit on 1 and 2 March, at which
point a final arrangement would
need to be signed off by all parties,
merely three weeks prior to the
most threatening date of all...
Tomorrow Eurogroup meeting
If all goes as planned, ministers of
finance from Eurozone countries
will gather again tomorrow. A final
deal with private debt holders will
not be established, but the
Eurogroup will be aiming to agree
to the deal in principle.
Is it sustainable? Troika decides
The troika made up of the
European Union, European Central
Bank and IMF must decide if the
bailout, combined with reforms,
would put Greece on a sustainable
footing. Debt is required to dip to
equivalent of 120 per cent of GDP.
German paymasters set to vote
On 27 February the Bundestag, the
lower house of the parliament in
Germany, will discuss the plan.
Many Germans are unhappy with
the government being demonised in
Greece, despite taxpayers coughing
up for the rescue fund.
...Doomsday? 20 March 2012
Much of the panic over the Greek
situation is caused by this nearing
deadline. If Greece fails to pay out
14.5bn in bond redemptions on this
date then it will officially default,
potentially leading to contagion
throughout the Eurozone.
STOCKS SOAR
MARKETS REACTED WELL TO
THE GREEK DEAL....
BANKS BOUNCE
YIELDS (on 10-year debt)
FTSE 100
UP 0.9%
STOXX 600
UP 0.7%
Commerzbank
UP 1.6%
Deutsche
UP 0.5%
Lloyds
UP 2.3%
SPANISH FELL
0.04PP
GREEK
FLAT
ITALIAN
0.01PP
Dow Jones
UP 0.57%
ASE Index
UP 4.65%
Spiked to
$1.328, yet
fell back to
$1.316
PORTUGUESE
FELL 0.55
PERCENTAGE
POINTS
CURRENCY
FITCH and Standard & Poors both
downgraded Spanish banks yesterday,
following earlier downward revisions
to the sovereigns credit rating.
Fitch took notches off four Spanish
banks, including BBVA, while S&P
downgraded 15 financial groups.
And S&P went even further, by
slashing the rating of Spains entire
lending sector.
The Banking Industry Country Risk
Assessment (BIRCA) was cut from
group 5 to group 4, S&P revealed,
with the industry risk score tumbling
from group 5 to group 3.
The BICRA change reflects our
revised industry risk score, owing to
our lower assessment of systemwide
funding and competitive dynamics in
Spain, S&P said, after it downgraded
Spanish state debt last month.
Spains banks hit
by downgrade
BANKING

ATHENIANS spent yesterday inspect-

ing the damage to their city after yet
another night of social unrest left its
mark on Greeces capital.
City authorities said 150 shops
were looted and 93 buildings were
wrecked or seriously damaged.
Youth unemployment is running
at 50 per cent and groups from the
provinces have flocked to the capital
to fight police. Rioting also spread to
the second city of Thessaloniki, towns
across the country and the islands of
Crete and Corfu.
I wouldnt mind paying for the
next two years if I knew austerity
would take us somewhere but this
crisis seems endless. said Leto
Papadopoulou, a civil servant.
The famous Attikon cinema,
housed in a neo-classical building dat-
ing from 1870, was burnt to a shell
while graffiti artists repainted the
sign on the outside of the Bank of
Greece to read Bank of Berlin.
People sent a message yesterday:
Enough is enough! They cant take it
any more, said Ilias Iliopoulos, gener-
al secretary of public sector union
ADEDY.
The social explosion will come
one way or another, there is nothing
they can do about it any more.
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Rates are xed for the term of the Bond, but the amount of interest you receive will depend on the number and size of the withdrawals you make. Rates
correct at time of going to press 11/01/2012. AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and
compounded once each year. Gross means the rate of interest payable before income tax is deducted. Withdrawals may take the balance into the
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minute, plus 13.1p call set-up fee (current at December 2011). The price on non-BT phone lines may be different. Calls may be monitored or recorded
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Austerity vote gets through
but ordinary citizens despair
BY JAMES WATERSON
POLITICS

News
5 CITYA.M. 14 FEBRUARY 2012
tensions pose
bailout deal
the policy that is being imposed upon
us today.
Yesterday a government spokesman,
Pantelis Kapsis, attempted to reassure
observers by insisting that the party
leaders would sign a pledge.
Kapsis added that elections would
be held in April, following the
assumed resolution of a second
bailout package to Greece in March.
THE FORUM: P25
WEALTH MANGEMENT: P28
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BEN BALLARD | CITY OF LONDON
Yes, I think they will follow through with the government spending cuts,
despite the public feeling. It is their only possibility to survive.
MICHAEL SCOTT | SJ BERWIN
I do not think they will be able to; the government doesnt have
sufficient par to follow through. Realistically they will ultimately
default and leave the euro.
STU GOODERHAM | LEXIS NEXIS
No, based on its previous mistakes I dont think they will be able to
keep their promises. It seems like they bail out on any hard
decisions.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: DO YOU THINK GREECE WILL CUT
SPENDING AS IT HAS PLEDGED? Interviews by Phoebe Torrance
...BUT GREEKS MUST PAY THE
PRICE OF DEBT REDUCTION
AUSTERITY PLANS
MINIMUM WAGE
to be slashed to
encourage new jobs
CIVIL SERVANTS
150,000 jobs to be
cut by 2015
PENSIONS
to be slashed by
300m a year
EMPLOYMENT
Laws will make it
easier to fire workers
HEALTH & MILITARY
Face large spending cuts
ANALYSIS l State debt as % of GDP
%GDP
Greek debt
2006 2008 2010 2012
200
180
160
140
120
100
80
60
Eurozone
ANALYSIS l Unemployment is soaring
Greek unemployment
2006 2008 2010 2012
25
20
15
10
5
Eurozone
%GDP
22%
150K
300m
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Headline bundle prices (i.e. prices before discount is applied) may vary during this ofer. *Source: Ofcoms reviewof UK broadband speeds published in July 2011, based on OfcomMay 2011 test results. General: All prices include VAT. Information correct at Jan 2012. Payment may be required in advance. Further legal stuf applies. Go to virginmedia.comfor details.
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ECONOMISTS have dismissed the gov-
ernments Project Merlin figures as
bearing no relation at all to the avail-
ability of credit in the economy.
The government struck a deal with
banks last year under which they
agreed to boost lending in return for
less anti-bank rhetoric from ministers.
The Bank of England released fig-
ures yesterday showing that banks
had met the overall target to increase
gross lending but fallen slightly short
on the small business lending target.
The Merlin data says that the UKs
five biggest banks made 214.9bn of
credit facilities available to business-
es, 74.9bn of which was to small
firms, versus targets of 190bn and
76bn respectively.
The response from City economists
was to shrug, however. They say the
figures are meaningless when assess-
ing the health of the economy.
Hendersons Simon Ward said net
lending data is more useful: I havent
given the [Merlin] figures much of a
look. You want to concentrate on the
amount of money actually lent from
the point of view of the impact on the
economy.
Instead, Merlin targets gross lend-
ing the credit banks have made
available to firms but uses a less
stringent definition of the term than
that used by the Bank of England
itself, which says the Merlin data are
not collected under the Bank of
Englands statistical code of practice.
Citigroup economist Michael
Saunders said: The figures bear no
relation to the cost and availability of
credit to the UK corporate sector I
think the Bank of England is embar-
rassed at having to publish them.
The Bank highlights its official
data alongside the Merlin figures.
Due to a change in statistical method,
the gross lending data is not compa-
rable throughout 2011, but the net
figure shows a steady contraction in
borrowing. Overall, firms borrowed
6.6bn less in 2011 than they repaid
in loans.
But financial secretary Mark Hoban
called the Merlin figures good news.
Economists:
Merlin data
is worthless
A PARLIAMENTARY committee has
slammed the governments inability
to explain what safeguards it was
demanding from European nations
when Prime Minister David Cameron
vetoed an EU treaty in December.
The House of Lords EU Committee
said that it has repeatedly asked min-
isters what exactly was at stake at the
summit and has yet to get a satisfacto-
ry answer.
It is unacceptable that the govern-
ment have not released appropriate
details of the safeguards which the
Prime Minister sought at the
December European Council, the
lords say in a report released today.
This makes it impossible to form a
balanced judgement about the out-
come.
At a separate inquiry by the House
of Commons Treasury Select
Committee, chancellor George
Osborne suggested that the safe-
guards demanded were aimed at
shoring up the UKs negotiating posi-
tion in thrashing out the details of
technical directives, in particular on
the ability of EU regulatory bodies to
wield certain powers.
But the government has yet to pro-
duce a consistent explanation of what
it was seeking at the summit.
THE administrators of the British arm
of MF Global said payments to clients
of the defunct brokerage will reach
$31m (19.6m) in the coming days.
KPMG said $19m will be released
this week after it agreed on Friday to
hand back $12m. The interim payouts
will affect about 1,900 clients in total.
Staff from KPMG have been criticised
for the time taken to return cash but
Richard Heis, joint special adminis-
trator, said he wanted to act quickly
despite the fact some legal uncertain-
ties have still to be resolved.
Clearly in a situation where we are
paying clients without having com-
plete certainty as to the extent of
claims, we must take a conservative
approach to payments... but this first
payment marks an important mile-
stone.
US broker MF Global collapsed on
31 October.
Lords demand
facts on EU veto
negotiations
New payout for clients of
failed broker MF Global
Former boss Jon Corzine has apologised for MF Globals collapse Picture: GETTY
BY JULIET SAMUEL
POLITICS

BY JULIET SAMUEL
POLITICS

News
CITYA.M. 14 FEBRUARY 2012
BY PETER EDWARDS
FINANCIAL SERVICES

7
SHARES in Cable & Wireless
Worldwide (CWW) soared 45 per cent
yesterday as Vodafone admitted it was
weighing up the benefits of a bid to
buy the dwindling telecoms group.
Following reports over the weekend,
Vodafone released a statement con-
firming it is in the very early stages of
evaluating the merits of a potential
offer for CWW.
Under the Takeover Code, Vodafone
has until 5pm on 12 March either to
confirm its intention to make an offer
or withdraw its interest.
The telecoms giant said any offer
made will be in cash, but declined to
comment on the likelihood of a bid or
any terms it might include.
CWW released a statement noting
Vodafones confirmation.
Vodafone could be looking at CWW
for its fixed-line network something
Vodafone lacks in Britain or to
cement its position in the corporate
market as consumer uptake of mobile
phones reaches saturation point.
CWWs Friday closing share price of
20p and market cap of 530m led to
analyst speculation of a 700m bid.
But CWW closed yesterday at 28.5p,
valuing the group at 771m already.
Private equity firm Apax Partners,
which lately bought Oranges Swiss
arm, is said to be eyeing CWW too.
Confirmed:
Vodafone eye
on CWW deal
BY LAUREN DAVIDSON
TELECOMS

GOOGLE has won the approval of US

and European regulators for the
$12.5bn (7.9bn) purchase of Motorola
Mobility.
Both the US Justice Department and
European antitrust authorities both
warned, however, that they would
monitor how patents are used to
ensure they comply with antitrust
rules.
Antitrust enforcers on both sides of
the Atlantic are concerned that
patents essential to ensuring commu-
nications devices sold by different
companies work together are licensed
for a reasonable fee.
The Justice Department said in a
statement yesterday that it will not
hesitate to take appropriate enforce-
ment action to stop any anticompeti-
tive use of SEP [standard essential
patent] rights.
Google, whose Android software is
the top operating system for internet-
enabled smart phones, said in August
that it would buy phone-maker
Motorola for its 17,000 patents and
7,500 patent applications, as it looks to
compete with rivals such as Apple and
defend itself and Android manufactur-
ers in patent litigations.
The deal will give Google one of the
industrys largest patent libraries, as
well as hardware manufacturing oper-
ations that will allow Google to devel-
op its own line of smart phones.
Google gets EU and US green
light over Motorola takeover
BY HARRY BANKS
RETAIL

News
8 CITYA.M. 14 FEBRUARY 2012
Both Vodafone and Cable & Wireless
Worldwide have been quick to maintain
that there is, as yet, no deal on the table.
But, should Vodafone serve an offer,
CWW has its usual advisory team
comprising Barclays Capital and
Rothschild at the ready.
Heading the BarCap squad is Will
Peters, who has been at the investment
bank since 2004 and is a director in its
Comms and Media department.
He previously served as a captain in
the army.
Jeremy Boardman leads from the
Rothschild side. Before joining the firm
in 1995, where he is now managing
director, Boardman was assistant vice-
president of Bankers Trust.
Herbert Smith, led by corporate
partner Christopher Haynes, is acting
for CWW on the legal side.
Vodafone has its usual bank UBS on
hand to guide it through this potential
deal with Linklaters, its long-standing
adviser, on the legal side.
MEET THE ADVISERS
BARCLAYS
CAPITAL
WILL PETERS
ANALYSIS l Cable and Wireless Worldwide
p
7Feb 8Feb 9Feb 10Feb 13Feb
30
28
26
24
22
20
28.54
13Feb
FACEBOOK UNDER FIRE FOR STOCK STRUCTURE
Facebooks proposed shareholder structure, outlined ahead of its forthcoming IPO, has
failed to impress Institutional Shareholder Services. The proxy advisory group criticised
the social networks dual-class stock which will give Zuckerberg (pictured) voting con-
trol of 57 per cent of Facebook for diminishing shareholder rights. ISS also condemned
the limited board accountability at Facebook, which as a controlled company is not
required to have a majority independent board. Picture: GETTY
HELICAL BAR, the listed property
developer, said it has made acquisi-
tions totalling 90m since 30
September 2011 against a backdrop of
severely constrained lending.
Helica said acquisitions and new let-
tings had helped boost its rental
income, net of irrecoverable property
costs, from 20m to 25.8ma year.
It also disposed of non-income pro-
ducing properties, totalling 40m dur-
ing the same period.
The developer said it also agreed
133m of new bank facilities including
a 100m revolving credit facility with
The Royal Bank of Scotland.
REGULATORS in France and Belgium
have finally lifted the bans on the
short-selling of certain financial
stocks, six months after they were
introduced as markets plunged on
Eurozone debt fears.
The separate decisions, by French
watchdog AMF and Belgiums
Financial Services and Markets
Authority (FSMA), come after a boost
to market sentiment and are expect-
ed to bring more liquidity to trading.
They stop short of a full easing of
restrictions, however.
AMF has lifted a ban on 10 institu-
tions BNP Paribas, Socit Gnrale,
Credit Agricole, Natixis, AXA, April,
CNP, Credit Mutuel-CIC, Scor and
Euler Hermes but introduced a new
regime of disclosing short positions
The FSMA lifted its ban on the cov-
ered short selling of KBC, KBC Ancora,
Dexia, and Ageas because of the
lower volatility of the markets but
said a ban on so-called naked short
selling, where the seller does not
actually own the shares in question,
would remain in place.
It also said that significant net
short positions in Belgian financials
would be subject to a reporting obli-
gation. Nobody from the French
finance ministry and the French
treasury were available for comment.
France, Italy, Spain and Belgium
introduced bans on short-selling
financial stocks on 12 August in a co-
ordinated attempt to restore market
confidence as borrowing costs soared.
Short-selling normally involves bor-
rowing a stock on the expectation it
will fall in price. Traders then make a
profit when they buy back the share
at a cheaper rate.
The bans were triggered by a col-
lapse in confidence in banks, includ-
ing Soc Gen, but were criticised by
institutional investors who com-
plained that it barred them from
engaging in legitimate hedging activ-
ities.
Spain has given little indication of
when it will lift its indefinite ban on
short-selling while in Italy curbs have
been extended until 24 February.
Yesterday banks, many of which
have exposure to Eurozone sovereign
debt, pared earlier session gains, with
the STOXX Europe 600 Banks index
closing up 0.5 per cent after being up
over one per cent in the morning.
France and
Belgium end
shorting ban
KNIGHT VINKE, the activist US
investor, has increased its stake in
Kesa, sending shares in the electricals
retailer up by 1.42 per cent yesterday.
Kesa revealed yesterday that its
biggest shareholder has upped its
holding by 2.2m shares, takings its
stake to 107.6m shares, or 20.32 per
cent.
The electricals group sold its loss-
making Comet chain after pressure
from Knight Vinke, which wanted it
to focus on its profitable French elec-
trical goods business Darty.
Shares in Kesa closed up 1.4 per
cent at 82.2p last night.
Knight Vinke
ups Kesa stake
Helical Bar to
keep spending
BY PETER EDWARDS
CAPITAL MARKETS

PROPERTY

RETAIL

SWISS corporations have taken a

global lead in international acquisi-
tions during 2012 and are responsible
for 16 per cent of cross-border
takeovers this year.
The relative strength of the
nations financial sector has allowed
Switzerland to surge the top of the
M&A rankings, with outbound acqui-
sitions by Swiss firms totalling
$12.8bn (8.1bn) in 36 deals so far this
year over sixteen times higher at the
same point in 2011.
Switzerlands success has pushed
Japan (14 per cent of foreign takeovers
by volume) and the US (10 per cent)
into second and third place respec-
tively, according to information from
data provider Dealogic.
Several major deals have helped
Switzerland hit such heights, led by
Roche Holdings $5.8bn bid for
Illumina, which is being resisted by
the US company.
Other major deals include ABBs
intended takeover $4bn of Thomas &
Betts and Temenos $1.9bn bid for
British technology firm Misys.
A major beneficiary has been
Credit Suisse, who advised on $10.4bn
of the deals.
Total Swiss acquisition volume is at
$61.2bn, largely due to the $48.4bn
merger of Glencore and Xstrata.
Swiss are global leaders for
2012 cross-border takeovers
M&A

The AMFs Jean-Pierre Jouyet has retained some restrictions on shorting Picture: GETTY
News
10 CITYA.M. 14 FEBRUARY 2012
REFORMS designed to regulate the
world of independent financial advis-
ers will lead to higher costs for con-
sumers who seek investment
guidance, according to a survey by
accountancy firm BDO.
The report suggests that 90 per
cent of advisers expect their earnings
to stay stable or increase after the
reforms and claims that the new reg-
ulations may change very little in
terms of direct benefits to con-
sumers.
It also suggests that although the
initial charge to the consumer will
fall by 0.1 per cent of investment
value, the overall cost of advice will
increase as advisers compensate for
lost revenue and increase ongoing
charges by around 0.2 per cent of
investment value.
The long-awaited Retail
Distribution Review (RDR) aims to
improve the quality of financial
advice by banning financial advisers
from earning commissions on the
sales of savings plans and enforcing a
minimum level of training.
Banning direct commissions from
product providers is intended to
improve the reliability of advice by
removing incentives to recommend
investments that are associated with
high referral fees but offer a poor
return for clients.
Alex Ellerton, financial services
director at BDO, said: The most
prominent form of remuneration in a
post-RDR world will simply be
charges deducted from the cus-
tomers premium by the product
provider and passed back to the IFA
just the same way as commission
works now.
A spokesman for the Financial
Services Authority said: We strongly
believe the RDR will raise profession-
al standards, remove commission
bias and help restore trust in the way
people receive investment advice.
IFA reforms
may result in
higher fees
BY JAMES WATERSON
FINANCIAL ADVICE

CONCERNS over liquidity in Japan

have forced GLG to close the door on a
key fund in the nation.
Stephen Harkers 1.1bn Japan
CoreAlpha fund faces a soft closure
from 30 March, meaning it will place
restrictions on new investment.
The fund, which has beaten the
Japanese sector average for the last
three years, will re-open when market
conditions improve.
Richard Phillips, head of UK retail
at Man, said liquidity in the Japanese
equity market had fallen in the after-
math of the earthquake in March of
last year.
While this has not impinged on
the teams ability to manage portfo-
lios with the desired degree of liquid-
ity and flexibility, it has created a risk
that performance could become con-
strained if inflows into the strategy
increase, Phillips said.
GLG was bought by Man Group, the
worlds largest listed hedge fund, for
$1.6bn (now 1.01bn) in 2010.
Turmoil forces GLG to shut the
door on Harkers Japanese fund
HEDGE FUNDS

BRITISH trading software firm

Fidessa yesterday announced that its
pre-tax profit had risen to 43.2m in
2011, up from 40m a year earlier.
The results beat analysts predictions,
despite the tough trading conditions
caused by a wave of insolvencies and
consolidation in the sector.
Revenue for last year was up six per
cent at 278.3m but the firm warned
that growth levels will be slower in
2012 as it continues to invest in devel-
opment and struggles with the loss of
smaller clients.
Fidessa suffered in its traditional
Western markets, typified by the col-
lapse of MF Global, which was respon-
sible for 1.3 per cent of Fidessas
global revenue.
However such declines were offset
by strong demand for its products in
the Americas and Asia.
The Woking-based company is the
dominant provider of trading soft-
ware to the financial industry, with
$10 trillion worth of transactions
using its network each year. The
firms flagship sell-side suite is used
by 85 per cent of tier one global equi-
ty brokers.
Fidessa shares, which had gained
12 per cent from the start of the year,
closed down 4.8 per cent.
Fidessa beats profit forecast
but warns of slowdown ahead
BY JAMES WATERSON
TECHNOLOGY

News
11 CITYA.M. 14 FEBRUARY 2012
ANALYST VIEWS: CAN FIDESSA CONTINUE TO
GROW AT ITS CURRENT RATE? Interviews by James Waterson

DAVID TOMS | NUMIS

Fidessa's results are modestly ahead of our expectations.
Management's increasing confidence in the multi-asset opportunity and the poten-
tial for a new engine of growth from hosted platforms for larger customers con-
tinue to support our positive stance.

JULIAN YATES | INVESTEC

Unsurprisingly the company is seeing continued weakness in its SME
customer base and it expects these trends to continue. New asset classes will not
be enough to sustain previous levels of growth and we would expect sales growth
in low single digits.

ROGER PHILLIPS | MERCHANT SECURITIES

The statement says to expect a slower year in terms of growth due to
market conditions persisting and further product investment. In the short term
the reaction will be a disappointment and the shares will come under pressure.
Longer term we see Fidessa as one of the outstanding stocks in the sector.

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the U.S. and other countries. App Store is a service mark of Apple Inc.
JOE LEWIS TO HOST HIGH-ROLLERS
GOLF IN HIS TAKEOVER DOWNTIME
THERE IS still more than a month to
go before Bahamas-based billionaire
Joe Lewis can come back with a bid
for pub chain Mitchells & Butlers.
To occupy himself in the mean-
time, the financier is hosting two of
the worlds most high net worth golf
tournaments. The first, the Albany
International Challenge co-hosted
with Rob Hersovs Adoreum Partners
near Lewiss Bahamas home; the sec-
ond, the Tavistock Cup in Orlando.
Both are extremely private. Only 50
business associates of the man who
owns Tottenham Hotspurs are invited
to the Bahamas tournament from 9
to 11 March, where cleared Spurs
manager Harry Redknapp would be
received with open arms.
[Redknapp] is not on our current list,
but he absolutely would be welcome,
said an aide. As for the Tavistock Cup
ten days later part of Lewiss leisure,
finance, energy and property con-
glomerate Tavistock Group only
sponsors, invited guests and members
of the Albany, Isleworth, Queenwood
and Lake Nona clubs are welcome.
That means Aidan Heavey, the
founding director of Tullow Oil;
banking executives from fellow spon-
sors Citi Private Bank and RBC Capital
Markets; plus Andrew White, CEO of
marketing agency WSM, and perhaps
his father-in-law Sir Martyn Arbib,
who ran Perpetual in the late 1990s.
Golfers Tiger Woods and Ernie Els,
backers of Lewiss Albany develop-
ment, will represent the resorts
team, but Lewis himself has too much
going on to take part. There are a lot
of interesting opportunities at the
moment for people with good cash
balances, hints a source. Whatever
could El Rico be looking to buy next?
COMMITMENT ISSUE
ITS THE thought that counts. So
thanks to ex-Liontrust chief Nigel
Legges new fund Vinculum, which
sent The Capitalist a card reminding
that love like the asset managers
fees is performance related.
Commitment may involve a high-
er element of interpersonal risk,
reads the Valentines-themed circular
to would-be investors. This can result
in profound and lasting resentment,
chronic loss of self-esteem, mutual
loathing, and periodic bouts of
seething rage. Where do I sign?
Joe Lewis (centre) with associates Aidan Heavey and Rob Hersov Pictures: GETTY / REX
The Capitalist
14 CITYA.M. 14 FEBRUARY 2012
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
HEATHROW is lagging behind major
rivals in the race to attract passengers
from China due to a lack of capacity,
BAA warned yesterday.
Londons biggest airport is losing out
to the likes of Paris, Amsterdam and
Frankfurt, airport chief Colin Matthews
said. Heathrows January traffic from
China, including Hong Kong, was down
by 0.7 per cent compared with the pre-
vious year.
Matthews said that the trend showed
that capacity constraints at Heathrow,
Europes busiest airport, were damag-
ing the UK economy when the country
can least afford it.
For 2011 as a whole, Heathrows
China traffic was up three per cent
compared with 2010 but that com-
pared with nine per cent in Frankfurt
and Paris and six per cent in
Amsterdam. Meanwhile the proposed
London hub airport in the Thames estu-
ary, backed by Mayor Boris Johnson, is
not off the starting blocks.
Overall BAA, which is mostly owned
by Spanish group Ferrovial, said it han-
dled 7.5m passengers in January, up 0.5
per cent. Heathrow served 5.2m passen-
gers last month, a record for January
and up 2.3 per cent on a year ago.
Heathrows bleak China figures are
reflected in a report from Visit Britain
last year which showed that Chinese
spent $54.9bn (3.4bn) on tourism in
2010, a fourfold increase in a decade.
But the UKs share of the pie was a mea-
gre 0.4 per cent. Airline seat capacity
from the countrys airports to the UK
remained stable at 40,000 per annum,
while rivals has risen.
Heathrow hit
as Chinese go
to rival hubs
Airbus joins aviation tax row
GLOBAL planemaker Airbus joined a
chorus of concern that a European
scheme to charge airlines for carbon
emissions risks triggering a full-blown
trade war, with implications for plane
deals and even Europes crippling sov-
ereign debt crisis.
The EUs Emissions Trading Scheme
(ETS), introduced on 1 January, has
drawn howls of protest from airlines
around the world, with China ban-
ning its carriers from taking part.
The escalating row comes on the
eve of a China-EU summit in Beijing,
with the EU looking to China to dip
into its huge foreign exchange
reserves to help the Eurozone tackle a
debt build-up that threatens its eco-
nomic stability.
Airbus chief executive Tom Enders
said he was increasingly concerned at
the potential fall-out if tensions are
not defused.
I am very worried about the conse-
quences of that. What started out as a
solution for the environment has
become a source of potential trade
conflict and that should be a worry
for all of us, he told an aviation con-
ference yesterday ahead of the
Singapore Airshow.
China is a strategic market for the
worlds two big planemakers, as it
coordinates purchases centrally and
regularly places orders with Airbus
and Boeing in batches of 100 or more
to coincide with high-level political
contacts.
Foreign governments argue
Brussels is exceeding its legal jurisdic-
tion by calculating the carbon cost
over the whole flight, not just Europe.
BY JOHN DUNNE
TRANSPORT

BY HARRY BANKS
AVIATION

QANTAS Airways has played down a

steering issue that forced an Airbus
A380 to twice abandon departure
before taking off from Heathrow air-
port on Saturday, saying it was unre-
lated to wing cracks that have led
Europes air safety officials to order
global checks on the superjumbo.
Qantas said the plane, due to fly
from London to Singapore, was travel-
ling at a very slow speed when the
decision was made to return to bay.
It was due to the steering issue. It
has no relation to the cracks in the
wing ribs at all, Qantas spokeswoman
Courtney Treak said. Our engineers
were able to fix the issue, so we dont
have any further concerns.
A spokesman for manufacturer
Airbus declined to comment, saying
that only the airline could comment
on operational matters.
Qantas says A380 delay
unrelated to wing cracks
AVIATION

News
15 CITYA.M. 14 FEBRUARY 2012
ANALYSIS l Ferrovial

7Feb 8Feb 9Feb 10Feb 13Feb

9.55
9.50
9.45
9.40
9.35
9.50
13Feb
Britains share of outbound Chinese visits
compared to closest competitors
2005
2010
Austria France Germany Italy Switzerland UK Canada USA
35
30
25
15
20
10
5
0
%
000s
Asia
Europe
Americas
Africa
Middle East
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
25,000
20,000
15,000
10,000
5,000
0
Chinese tourism to Europe is set to
surge in the coming years but
Britain will miss out due to
capacity constraints
ANALYSIS l Britain is failing to cash in on
the Chinese tourism boom
of all outbound visits from
China in 2010
0.4%
Britain accounted
for just
REVENUES tripled at Monitise in
the first half of the fiscal year on
record demand for the mobile bank-
ing groups services, which now
process an annual 480m transac-
tions, up from 120m in 2010.
The British company raised its
full year revenue guidance by 21 per
cent to 34m after a successful six
months which saw revenues reach
15.8m three times the revenue
of the first half of fiscal 2011.
Despite ending the period with
43m in cash and a record order
book of 83m, the group reported
an operating loss of 6.9m albeit
an improvement on last years
7.5m.
The period saw strong growth in
the US, where Monitise now sells
directly into the market due to its
acquisition of FISs majority stake in
joint venture Monitise Americas.
This will be boosted by last weeks
announcement of a new mobile
payments collaboration with Visas
debit processing service.
The partnership with Visa also
saw Monitises European presence
grow, due to a 24.7m investment
from the credit card company in
October and the subsequent launch
of a mobile banking alerts service.
Monitise said it expects gross
margins to increase to more than 70
per cent by the end of fiscal 2013.
Chief executive Alastair Lukies
said: The platform is scaling global-
ly through our continued invest-
ment as we deliver against our strat-
egy. We have particularly seen
momentum accelerate in the US
mobile money market and we
believe we are well placed to benefit
from this.
Shares teetered throughout the
day, before closing level at 36.5p.
US growth triples
Monitise revenues
BY LAUREN DAVIDSON
TECHNOLOGY

OLYMPUS, the scandal-hit technolo-

gy company, said it may shun out-
side investment as it forecast it
would fall to a 32bn (260m) full
year loss.
It had been considering a cash
injection from other Far East electri-
cal companies but its medical equip-
ment arm appears solid.
When asked if Olympus could con-
tinue without a capital boost, presi-
dent Shuichi Takayama said
yesterday: I think its a possibility.
The firm said it now expects a
32bn net loss for the financial year
ending 31 March, hit by impairment
losses in its ailing camera business
and tax asset write-downs.
That compared with a 3.87bn net
profit in the prior year, and its previ-
ous forecast for an 18bn profit that
it withdrew in the wake of the 1bn
accounting scandal.
Olympus wants
to go it alone
despite falling
to 260m loss
TECHNOLOGY

News
16 CITYA.M. 14 FEBRUARY 2012
DATA centre Telecity is ready to
reward investors as the group
announced it will pay its first dividend
following first half 2012 results later
this year.
The company, which is based in
London, yesterday reported revenues
up 22 per cent to 239.8m for the year
to the end of December, largely boost-
ed by the growth of cloud computing
as mobile data demand increases and
large companies outsourcing their
data hosting.
Pre-tax profits jumped more than a
quarter on last year to 67m, surpass-
ing market expectations of 65.7m.
Adjusted earnings per share grew 11
per cent to 24.1p.
Telecity, the leading provider of car-
rier-neutral data centres across
Europe, now has total available cus-
tomer power of 68 megawatts, up
from 58MW at the end of 2010.
Telecity chief executive Michael
Tobin (pictured) said in a statement:
We have significantly enhanced the
groups future growth prospects, with
investments being
made in capac-
ity across
Europe and
with the
acquisitions
of Data
Electronics in
Dublin and UK
Grid in
Manchester.
Shares in the
FTSE 250-list-
ed firm fell
one per cent
to 648.5p.
Cloud computing
guides Telecity to
maiden dividend
BY LAUREN DAVIDSON
TECHNOLOGY

ANALYSIS l Monitise
p
7Feb 8Feb 9Feb 10Feb 13Feb
39
38
37
36
35
34
33
36.50
13Feb
Real potential is in emerging markets
WHEN I first met Alistair Lukies
back in 2009, things were not look-
ing good for his company, the
mobile payments provider
Monitise. The firms share price
was languishing at 5p, way below
its IPO price of 21.25p, and it was
operating in not one but two trou-
bled sectors: tech and financial
services. To make matters worse, it
was quoted on the then-belea-
guered Aim market. Lukies, a for-
mer rugby pro, was unfazed,
believing that mobile banking
would hit the tipping point round
about now. As it happens, he was
right.
Yesterday, the firm upgraded its
full-year revenue guidance by 21
per cent to 34m. That is more
than double the 14m it pulled in
in 2011 and over five times its 2010
haul of 6m. It is a blistering pace
of revenue growth, which has
helped it narrow its ebitda loss
from 7.5m in the first half of 2011
to 6.9m this time round. Its tar-
get to break even in cash terms by
the end of 2013 no longer looks so
distant. Analysts at Evolution
expect profits of 8m in 2014.
This is all the product of years of
painstaking work, which saw
Monitise build partnerships with
the likes of Visa and VocaLink, the
operator of the UK cash-machine
network. It also had to convince
investors and the authorities that
its security was bank grade. The
good news is that while all this
heavy lifting was pretty arduous, it
means the barriers to entry are
now quite high.
It is the US that is now driving
revenue growth, but the exciting
thing about this company has
always been its ability to conquer
young emerging markets. These
countries are likely to skip inter-
net banking (due to patchy con-
nectivity) and go straight for
mobile banking.
The shares still look like a good
punt, but the returns on offer will
be nothing compared to the
killing that those who stood by
Lukies in the dark days of 2009
stand to make.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
GELDOF AFRICA FUND RAISES $200M
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equity fund, cementing a shift in his global anti-poverty crusade from rich world debt
forgiveness to promoting private enterprise. Private equity is one way to support the
enterprise and dynamism of the people of the continent and help provide the jobs and
skills that are needed," Geldof said yesterday. Picture: GETTY
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17 CITYA.M. 14 FEBRUARY 2012
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www.cityam.com
Why Barclays Capital is set to go marching on
W
HENEVER I speak to a direc-
tor at Goldman Sachs or
Morgan Stanley about
BarCap, Barclays Banks
investment banking arm, I am
reminded by them that it takes a very
long time to build up a sustainable
leading position in the equity mar-
kets.
As Barclays geared up for publica-
tion of its financial results last Friday,
questions were being asked again
about its commitment to investment
banking.
For sure, BarCap has leapt up the
league tables of equity advisory, equi-
ty capital markets and equity trading,
but the critics say this has all come at
too heavy a cost.
Bob Diamond, the Barclays chief
executive, has set a rate of return on
equity target of 13 per cent by 2013,
which now seems too optimistic
given that last years figure came in at
6.6 per cent.
Barclays blames the recent market
downturn and argues that although
revenues, for example, in fixed
income and commodities, came
down by 27 per cent in 2011, this was
less of a fall than at Goldman Sachs (-
46 per cent) or Bank of America
Merrill Lynch (-36 per cent). Barclays
also says that its cost income ratio of
71 per cent beats that of rivals such as
Citi, BoA, Goldman, Morgan Stanley
and Deutsche.
But still it knows there is investor
pressure to make some inroads on
costs. I expect BarCap to be one of
the survivors and relative winners,
says Ian Gordon, banking analyst at
Investec, but the bank cannot
achieve its targeted returns and sus-
tain the existing cost base without a
particularly strong rebound in invest-
ment banking revenues.
I expect the outcome to include a
more material and sustainable focus
on cost reduction in BarCap.
The question is will it be possible
to keep winning new mandates and
keep levels of morale high while
simultaneously reducing headcount
or remuneration?
Fortunately for BarCap the lousy
market conditions may work in its
favour. For one, it is hard for employ-
ees to find better positions elsewhere
in a contracting market. And compa-
nies are more likely to look for new
advisers in fragile markets.
Add to that the fact that RBS has
conceded its position at the top table
of UK investment banking, UBS is
retreating and few other houses are
in expansion mode.
Look how aggressively BarCap
fought to get on the Xstrata deal and
you get the sense that theres no
wavering of commitment to the
cause.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
Merchant House slumps
SHARES in broker Merchant House
dropped by a sixth yesterday after it
said it was transferring money from
Dorset stockbroker Pritchard, whose
activities have been restricted by the
Financial Services Authority.
The stock closed down 16.67 per
cent at 0.1p. Merchant said the cash
held by Pritchard, in the structured
products group, is safe because it was
in a client account.
Last week the FSA said Pritchard
had failed to arrange sufficient pro-
tection for clients assets.
FINANCIAL SERVICES

FRENCH cosmetics maker LOreal said

yesterday it expected increased rev-
enue and profits again this year, with
emerging markets set to eclipse
Western Europe as the biggest con-
tributor to sales.
The group also said that LOreal
heiress Liliane Bettencourt, 89,
Frances richest woman with a 30 per
cent stake in the 49bn (40.1bn)
company, was leaving the board to be
replaced by her 25-year-old grandson
Jean-Victor Meyers.
The maker of Garnier shampoo,
Lancome creams and Yves Saint
Laurent perfume posted 2011 operat-
ing profit of 3.29bn, up 7.7 per cent
and ahead of estimates.
The worlds biggest cosmetics
groups operating margin rose to 16.2
per cent from 15.7 per cent the previ-
ous year. Full-year sales rose 5.1 per
cent like-for-like to 20.34bn, also just
ahead of forecasts.
Chief executive Jean-Paul Agon said
the group was well-equipped to
achieve another year of sales and
profit growth in 2012 following a
year in which the global cosmetics
market trend was favourable.
The chief exec also thanked
Bettencourt for what he called her
unrelenting support to the man-
agers of the group, adding that her
interest for the group remains
strong.
The Bettencourts have a 10-year
deal with Swiss group Nestle, which
owns 31 per cent of LOreal, giving
each party first refusal for their
stakes. Neither can raise their stakes
during Liliane Bettencourts lifetime.
Bettencourt lost control of her busi-
ness affairs to daughter Francoise
Meyers-Bettencourt, mother of Jean-
Victor Meyers, in an October judg-
ment on the basis of a medical
examination that concluded she was
suffering from a form of dementia.
Meyers, who has been a member of
the supervisory board of Bettencourt
family holding Tethys since January
2011, was given responsibility for his
grandmothers health and physical
well-being.
DAIRY Crest said yesterday it had
made a 4m provision for bad debt
after one of its customers, Quadra
Foods, appointed administrators.
The group said it was in a strong
position to absorb the debt and its
dividend would not be adversely
affected.
In a statement the foods group
Dairy Crest said: This is the total
debt owed to us by Quadra, although
we are looking at several options to
reduce the amount involved.
Dairy Crest has annual sales of
1.6bn and this is an isolated inci-
dent. It will have no material effect
on our year end borrowings.
Dairy Crest said the 4m owed will
be accounted for as an exceptional
item.
Quadra is best known for its
Dairystix liquid milk pouches.
In an interim management state-
ment earlier this month, Dairy Crest
said group sales had risen two per
cent, thanks to new products but
admitted that trading was tough in
the dairy products business.
Its main brands are Cathedral City,
Country Life, St Hubert Omega 3,
Clover and Frijj.
The group said it was is on track to
meet its promised annual cost sav-
ings of 20m.
Analyst Charles Hall at Peel Hunt
said: The loss will obviously be seen
as negative to sentiment in the short
term, but should have minimal effect
long term.
Dairy Crest warns investors over 4m
hit as Quadra calls in administrators
EXPECTATIONS that the directors of
FTSE 250 miner Bumi will strike a deal
to resolve a row over board member-
ship rose yesterday, driving the share
price of the company up in morning
trading.
Samin Tan, the newest major share-
holder in Bumi, is due in London this
week to talk with other shareholders
about a plan to remove Nat Rothschild
as the miners co-chairman.
But he and the Bakrie Group, which
had both proposed Rothschilds
removal and replacement by Tan,
sounded a more conciliatory tone yes-
terday.
Tan claimed: The resolution [to
remove Rothschild and four other
directors] has never been targeted at
any individual or individuals.
We are keen to get to work to help
create value for all shareholders, Tan
told the Wall Street Journal. As City
A.M. revealed yesterday, Tan wants to
get more money into the development
of Bumis non-coal assets as quickly as
possible but it is not clear how other
shareholders will react to the plan.
Bumi investor says board
shake-up is not personal
MINING

ANGLO American Platinum, the

worlds largest platinum producer, yes-
terday said its production continued
to be dented by safety issues which
have triggered a string of shutdowns.
Amplats, which had 81 government-
enforced safety stops in 2011, over dou-
ble the number the year before, said
production in 2012 was likely to be
flat.
The firm is listed in Johannesburg
but is a managed subsidiary of mining
giant Anglo American.
Meanwhile headline earnings per
share the main gauge of earnings in
South Africa fell almost 30 per cent
as expected to 1,365 cents in 2011.
The rise in stoppages was a key rea-
son behind Amplats failure last year
to meet its initial production target of
2.7m ounces. It produced just over
2.5m and is targeting 2.5 to 2.6m
ounces this year.
The company has been critical of
the scale of some of the shutdowns
imposed on it by the authorities.
Anglo American Platinum
dented by mine stoppages
MINING

US PRESIDENT Barack Obama

unveiled a 2013 defence budget yester-
day that proposes cuts in Pentagon
spending for the first time since 1998,
slashing military personnel costs and
weapons purchases as it trims $487bn
(308.7bn) in projected outlays over
the next decade.
The Presidents spending plan calls
for a Pentagon base budget of
$525.4bn, about $5.1bn less than
approved in 2012.
The cost of US wars abroad would
fall 23 per cent, to $88.5bn, primarily
due to the US withdrawal from Iraq
and a drawdown in Afghanistan.
Shares in UK-listed defence giants
such as BAE Systems and Qinetiq were
left unchanged by the news, however,
as the firms have already looked to
other markets to offset spending cuts
in the UK and US.
The defence budget slashes person-
nel costs by $6.7bn as the military
begins to cut its overall force size by
about 100,000 troops over five years.
The Army is to take the bulk of the
reductions about 72,000 soldiers.
The budget also would delay devel-
opment of the Armys ground combat
vehicle, saving $1.3bn over five years,
and reduce the Navys shipbuilding
program, for savings of $13.1bn.
The spending plan terminates one
version of the Global Hawk unmanned
surveillance drone, a defence weather
satellite system and the C-27A trans-
port plane, for total savings of $9.6bn
over five years.
Obama unveils defence cuts
BY HARRY BANKS
DEFENCE

Heiress quits
LOreal as firm
reveals profit
BY HARRY BANKS
CONSUMER

BY JOHN DUNNE
CONSUMER

The United States has pledged to cut $487bn

from its defence budget over ten years
This comes after the UK said in October
2010 that it would trim eight per cent from its
33bn annual defence budget over five years
FAST FACTS | DEFENCE SPENDING
News
19 CITYA.M. 14 FEBRUARY 2012
BARRICK Gold, the worlds largest
gold producer, plans to sell its 20 per
cent stake in Russias Highland Gold,
it announced yesterday.
Barrick bought the stake in
Highland, a venture backed by tycoon
Roman Abramovich, almost a decade
ago, with the aim of using it to gain a
foothold to grow in Russia, home to
the worlds second-largest gold
reserves after South Africa.
Instead, as Highland failed to sig-
nificantly ramp up its production and
with Russia still a tough environment
for foreign miners, Barrick Gold has
focused on its more lucrative US and
Latin American growth assets.
Aim-listed Highland, which missed
its 2011 output target after hitting
operational hitches, was Barricks
only major asset in Russia.
Highland is 40 per cent owned by
entities linked to Millhouse,
Abramovichs investment vehicle,
which said that a sale could be good
for the stock as it could boost a free
float, currently around 30 per cent.
Barrick to offload stake
in Russias Highland Gold
Barrick is to sell its 20 per cent interest in Highland Gold Picture: GETTY
BY HARRY BANKS
MINING

NEWS | IN BRIEF
Rusal aluminium output dips
Rusal said yesterday that it expects
more companies to cut aluminium out-
put this year, with China accounting for
about a third of global cuts, but still
forecast that global output would top
demand. A supply glut on the back of a
deepening European debt crisis and
global economic slowdown has hurt
demand and prices for the lightweight
metal. Russias Rusal is one of the
biggest aluminium companies in the
world.
Ronson petrol purchase nears OK
Gerald Ronsons deal to acquire petrol
stations from Total and sell some to
Shell is close to clearing its final compe-
tition hurdle. Ronsons Snax 24 forecourt
business, alongside Investec and
Grovepoint Capital, made the deal for
Total UKs assets in June under the name
Rontec. At the time, Rontec said it
would end up operating 556 sites across
the UK, owning 238 of these outright
and selling 254 to Shell. The Office of
Fair Trading approved the purchase from
Total last month, and said yesterday the
sale to Shell will be considered for clear-
ance now that Shell has offered to sell
some sites to overcome local competi-
tion issues.
Stobart property deal gets nod
Haulage group Stobart has won the
backing of almost all its shareholders to
buy up property from a company con-
trolled by its own directors. Despite crit-
icism from institutional investor group
Pirc, 97.9 per cent of Stobart investors
who voted by proxy before the meeting
were in favour of the deal. Stobart said
last month it planned to buy 18 proper-
ties from WA Developments for
12.35m plus 88.85m of debt. WA and
its subsidiary WADI Properties are con-
trolled by two Stobart directors: chief
exec Andrew Tinkler and chief operating
officer William Stobart.
Liliane Bettencourt has
left the board of
LOreal after medics
concluded she had a
form of dementia
EUROPEAN plans aimed at protect-
ing pension pots will destroy final
salary schemes in the UK and cost
businesses hundreds of billions of
pounds, a consortium of industry
and labour bodies warned yesterday.
In a letter to EC boss Jose Manuel
Barroso, the Confederation of British
Industry (CBI), Trades Union
Congress (TUC) and National
Association of Pension Funds (NAPF)
argued that applying new capital
rules to pension funds will cost an
estimated 300bn, hitting the work-
ers saving for retirement and threat-
ening to tip the companies offering
the schemes into bankruptcy.
The European Insurance and
Occupational Pensions Authority
(EIOPA) will tomorrow present its
recommendations to the European
Commission, and is expected to
push for Solvency II-style regulations
to be implemented, bringing pen-
sion funds into line with insurance
companies.
The aim is to make funds safer,
giving them a capital buffer in case
an economic shock puts them at risk
and means risk-free, liquid assets
like government bonds will be priori-
tised over riskier assets like equities.
However, the NAPF argues this
misunderstands how pension funds
work: theirs are long-term invest-
ments, but insurers face more short-
term risk if major events result in
large payouts to customers.
By demanding dramatic increas-
es in funding from employers, the
ECs plans would at best force all
remaining defined benefit schemes
to close and at worst push many
businesses into insolvency, leading
to significant job losses, the letter
said.
Far from benefitting employees
and protecting scheme members,
this would create a system in which
job creation would be seriously hurt
and pension provision inevitably
damaged.
It will also harm firms looking to
raise cash by issuing shares.
Pensions minister Steve Webb
joined the push to stop the rules
being implemented, telling City A.M.:
Why are we even thinking about
this? It is hard to see what question
Solvency II is the answer to. These
changes would be catastrophic, and
we need to get in early to make our
case before the decisions are made.
JAPANS economy shrank much more
sharply that expected in the final
quarter of 2011, official GDP estimates
showed yesterday.
The strong yen and Thai floods
helped cut exports by 3.1 per cent over
the three-month period, leading GDP
to contract by 0.6 per cent.
Public fixed capital formation fell by
2.5 per cent, a second consecutive
quarterly decline, also hitting output,
which declined by 0.9 per cent for the
year as a whole.
Analysts expect the grim news to
increase pressure on the Bank of Japan
to tweak its monetary policy outlook.
Since the Fed enhanced its policy
guidance on 25 January and dragged
down the USD by pushing back its pol-
icy rate hike expectation toward late
2014, both ruling and opposition
politicians have said the Bank should
clarify its current monetary policy
regime, said Barclays Capitals
Masafumi Yamamoto.
To weaken the yen, Yamamoto sug-
gested the Bank either increase its
asset purchases or publicly seek to out-
do the Fed by promising lower interest
rates and more QE beyond the Feds
stated forecast periods.
The Bank of Japan believes more
spending on reconstruction should
help boost GDP into 2012.
However, economists worry slowing
consumer demand growth fell to 0.1
per cent in the fourth quarter from 0.9
per cent in the third may dent those
hopes of recovery.
Japans economy falls sharply as Thai
floods and strong yen pull on exports
UK JOBSEEKERS face the worst labour
market environment since early
2009, according to a study from the
Chartered Institute for Personnel
(CIPD), published yesterday.
A net balance of eight per cent of
firms are set to cut headcount, the
groups survey showed, which is
expected to take unemployment up
to 2.85m by the end of the year.
Meanwhile the Trades Union
Congress today argued that the gov-
ernment should take more note of
the U6 measure of unemployment,
which takes into account discour-
aged workers who have given up
seeking jobs, and those who are
underemployed, taking part time
work when they would prefer full
time jobs.
On this measure, the TUC estimat-
ed, unemployment stands at 6.3m
its highest level since records began
in April 1993, and well above the offi-
cial level of 2.68m or the claimant
count, which stands at 1.6m.
Unemployment heading
toward 3m, warns study
UK ECONOMY

HUNDREDS of thousands of house-

holds are coping better with paying
bills and debts than they were late
last year, Legal and Generals
MoneyMood survey showed yesterday.
The number struggling with finan-
cial commitments has fallen by
244,000 since the final quarter of
2011, to 1.89m.
Of those, 189,000 are in London
down 81,000 on the quarter.
The average household nationwide
that is short of cash needs an extra
96 per month to get by, but those in
London are 261 short.
Households in Scotland and East
Anglia with a shortfall have the low-
est on average, at just 25 per month.
At the other end of the spectrum,
households that manage to save
money put away an average of 93
each month but Londons savers
manage 159.
The biggest savers are in the East
Midlands, at 177 per month.
There is a clear north/south divide
with the south saving between 25 per
cent and 90 per cent more than the
national average and double the level
of savings achieved by those in the
northern regions, the report said.
Household finances show signs of life
with Londoners savings racing ahead
UK ECONOMY

AN ECONOMIC upturn is on the way,

and economies should start growing
more strongly in the next six months,
according to the Organisation for
Economic Cooperation and
Developments (OECD) leading
indices, published yesterday.
Using indicators like business senti-
ment and job expectations to esti-
mate economic growth in six
months time, the study found posi-
tive figures in the US and Japan in
December, pulling global growth
upwards.
However, the index registered
below-trend growth for the UK, hold-
ing steady at 98.7, and the Eurozone,
which fell 0.2 to 98.3, and a slowdown
in China, which saw its reading slide
from 99.8 to 99.3.
A reading of 100 indicates trend-
rate economic growth.
The near-stabilisation for the UK
in December ties in with recent indi-
cators and survey evidence suggest-
ing economic activity picked up
around the turn of the year and
boosts hopes the economy can avoid
recession, said economist Howard
Archer from IHS Global Insight.
The OECD as a whole registered a
positive change in momentum, hit-
ting 100.4, up from 100.2 in
November.
Global growth getting better
BY TIM WALLACE
WORLD ECONOMY

EU plan risks
final salary
pension deals
BY TIM WALLACE
REGULATION

BY TIM WALLACE
JAPANESE ECONOMY

News
20 CITYA.M. 14 FEBRUARY 2012
FIRST TIME BUYERS HURRY TO BEAT STAMP DUTY DEADLINE
THE HOUSING
market saw a
jump in activity in
December and
January as first-
time buyers
snapped up houses
before the stamp
duty exemption
runs out next
month, data from
the Council of
Mortgage Lenders
(CML) showed yes-
terday, and Royal
Institute of
Chartered
Surveyors (RICS)
today. Loans to
first-time buyers
were up 14 per cent
on December 2010,
CML reported.
Picture: GETTY
NEWS | IN BRIEF
EU sees jump in trade to China
Exports from the EU to China dramatically
outgrew sales to other countries and
regions in the last decade, Eurostat data
revealed yesterday. The 27 countries saw
exports to China rise consistently from
26bn (21.78bn) in 2000 to 113bn in
2010, defying the overall drop in exports
experienced in 2009. Imports rose from
79bn to 283bn over the period, leaving
a trade deficit of 169bn. Data from the
first 10 months of 2011 registered a 21
per cent jump in exports on the same peri-
od of 2010. German exports represented
48 per cent of the total last year, followed
by France with 10 per cent and the UK
and Italy with seven per cent each. The
UK has the second largest trade deficit
with China after the Netherlands, at
24bn in the 10-month period.
Debt consolidation hits 1.5bn
Consumers are set to borrow 1.5bn for
debt consolidation in the thirst three
months of 2012, according to data out
yesterday from Sainsburys Finance. The
157,000 loans account for almost one in
three of all unsecured loans taken out in
the period, and average 9,800 each.
For those who perhaps have balances on
credit cards where they are no longer
benefiting from an introductory offer or
are paying a high interest rate on one or
more store cards, consolidating the debt
could make a big difference by making it
easier to budget monthly outgoings, said
Steven Baillie of Sainsburys. Anyone
considering taking out a personal loan
for this purpose should make sure they
shop around and find the most competi-
tive rate or reward package.
ANALYSIS l The OECD economies may
be looking up
Leading
index
2001 02 03 04 05 06 07 08 09 10 11
100
105
100
95
90
New from City A.M., we bring you the latest
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>


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W W W . C I T Y A M C A R E E R S . C O M
F I NA NC E B A NK I NG L E GA L I T
News
22 CITYA.M. 14 FEBRUARY 2012
IOSCO
The International Organization of
Securities Commissions has appointed
David Wright as its new secretary gen-
eral. Wright, who will start the new job
in March, has been a senior adviser to
the European Commission during the
current financial crisis, most recently
as a member of the Commissions task
force on Greece.
Merchant Securities
Merchant Securities has hired the for-
mer corporate finance team at Evolution
Securities Leeds office, who will move
to the Leeds office on 6 March. The
team will be led by Joanne Lake, who
becomes director of corporate finance
and head of Merchant Securities Leeds
office, working with Peter Steel and
Casper Kaars Sijpesteijn. In addition,
Jeff Keating has been appointed as a
director of corporate finance in London.
Grant Thornton
Ian Corfield has been appointed as a
partner in the London mid-market
recovery and re-organisation team to
expand the business alongside existing
partners David Dunckley and David
Riley. Corfield specialises in advising on
the turnaround of distressed businesses,
notably the administration of the Hilton
Manchester and First Quench Retailing.
Cavendish Corporate Finance
The corporate finance adviser has pro-
moted directors Michael Jewell and
Andrew Jeffs to partner. Jeffs and
Jewell have worked at Cavendish since
2002 and 2006 respectively.
Eversheds
Eversheds has expanded its pensions
practice with three new partner
hires. Sarah Swift joins the London
office from Freshfields Bruckhaus
Deringer, and pensions specialists
Emma King and Sarah Franklin join
Eversheds Birmingham office from
Squires Saunders.
IFRS
James H Quigley, the chief executive
of Deloitte Touche Tohmatsu between
2007 and 2011, has been appointed
as a trustee of the International
Financial Reporting Standards
Foundation, the oversight body of the
International Accounting Standards
Board. Quigley will hold the appoint-
ment until 31 December 2014.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
US stocks rise and
Apple hits its peak
U
S stocks rose yesterday, with the
S&P 500 near seven-month
highs, after Greeces parlia-
ment approved reforms needed
to qualify for a bailout and avoid an
unruly default.
Apple shares closed above $500 for
the first time after a gain of 1.9 per
cent, leading the Nasdaq Composite
to close at a more than 11-year high.
Greek lawmakers backed drastic
cuts in wages, pensions and jobs on
Sunday as the price of a 130bn
(109bn) bailout by the European
Union and International Monetary
Fund.
But unrest in the streets and a vot-
ing rebellion by lawmakers of the rul-
ing coalition suggested Greece may
be on the brink of massive social
unrest, which would make it difficult
for Athens to stick to the rescue
terms.
Doug Roberts, chief investment
strategist for the website
ChannelCapitalResearch.com, said
there is some scepticism about
whether the Greek public will accept
the reforms. But current market con-
ditions make it hard for money man-
agers to avoid stocks.
Mutual fund managers have a
herd instinct and if everyone else is
playing the game, with cash yielding
zero, they have to participate,
Roberts said.
The S&P 500 last week hit a seven-
month high and is up more than 25
percent from a low in early October,
in part on bets the Greek reforms
would pass. The benchmark index is
hitting strong resistance in the 1,355-
1,360 area, a possible trigger for a
pullback.
You have to respect the fact the
market has been as strong as it has
been, but we wouldn't buy into this
strength, said Bruce McCain, chief
investment strategist at Key Private
Bank in Cleveland.
The Dow Jones industrial average
gained 72.81 points, or 0.57 per cent,
to 12,874.04. The S&P 500 Index
gained 9.12 points, or 0.68 per cent, to
1,351.76. The Nasdaq Composite rose
27.51 points, or 0.95 per cent, to
2,931.39.
Apple raised the stakes in an inten-
sifying global patent battle with
Samsung Electronics by targeting
Samsungs latest model that uses
Googles Android software.
Apple shares rose as high as
$503.83 and ended up 1.9 per cent to
a record close of $502.60. Google rose
one per cent to $612.20. Google is
expected to win approval from regula-
tors for a $12.5bn purchase of
Motorola Mobility.
B
RITAINS leading shares index
closed higher yesterday, led by
commodity and financial
stocks, after Greece moved a
step closer to securing an internation-
al bailout and avoiding a messy
default.
At the close, the FTSE 100 index
was up 53.31 points, or 0.9 per cent, at
5,905.70, in volume just 70 per cent of
the 90-day average, with many traders
in London away for the school half-
term holiday.
Buyers lifted the FTSE on the back
of the Greek news, but it was not as
confidence building a rally as one
would have hoped, said Angus
Campbell, head of sales at Capital
Spreads.
Investors are still wary as it does
not mean Greece is immune to
defaulting sometime in the future,
and investors continue to keep a close
eye on the likes of Portugal, Ireland,
Spain and Italy, Campell added.
Banks provided a boost for the blue
chips after the Greek parliament
voted through a bill that sets out
3.3bn (2.8bn) of extra budget cuts
for this year alone and provides for a
bond swap to ease Greeces debt bur-
den by cutting the real value of pri-
vate-sector investors bond holdings
by 70 per cent.
Insurers were in demand as bond
default worries eased and equity valu-
ations recovered, with RSA Insurance
up 1.8 per cent, helped by positive
comment from Nomura ahead of full-
year results due on 23 February.
RSA has performed in line with
the FTSE 100 year to date, but has
lagged the risk on rally, underper-
forming the DJ Insurance Index by 8
per cent, Nomura said in a note.
Hence, the results on 23 February
could be a catalyst for the stock. If
markets re-trench, on the other hand,
RSA should have a less marked correc-
tion, the broker added.
Integrated oils and miners also
moved higher on demand hopes as
the debt swap deal for Greece lifted
some of the uncertainty hanging over
the global economic outlook.
Miners were also boosted by more
M&A talk following last weeks
announcement of the proposed
merger between Glencore and
Xstrata, with reports Canadian met-
als and coal miner Teck Resources
may be building a stake in Australias
third-largest iron ore producer
Fortescue Metal.
M&A moves also catapulted mid
cap Cable & Wireless Worldwide up
44.5 percent, easily the biggest mar-
ket gainer, after Vodafone Group, the
worlds largest mobile operator by
revenue, said it was weighing a
$1.1bn offer for the telecoms firm.
Vodafone shares added 1 per cent.
Credit Suisse said appetite for
acquisitions is building, and high-
lighted financial services group Old
Mutual among possible targets. Old
Mutual shares added 2 per cent.
On the downside, cruise operator
Carnival and airlines group IAGwere
among the top blue-chip fallers,
down 2.5 per cent and 1.4 per cent,
respectively, hit by fears over a hike in
fuel costs as crude prices rose.
Other defensive stocks accounted
for a number of other blue chip fall-
ers, with luxury goods group
Burberry off 1.1 per cent and engi-
neer Weir Group down 0.7 per cent,
as the appetite for safer assets faded
slightly.
Cyclicals are outperforming defen-
sives by 12 per cent (in the year-to-
date), but as long as yields continue to
move higher, cyclicals will remain the
outperformers in our view, JP
Morgan Cazenove said in a strategy
note.
FTSE breaks through 5,900
mark on Greek bailout deal
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l RWS Holdings
440
450
460
470
480
430
420
Dec Jan Feb
p
480.00
13 Feb
RWS HOLDINGS
Numis has upgraded the intellectual property support service provider from
add to buy and increases its target price on the stock from 534p to 565p,
after the company reported trading in its first quarter has been in line with
expectations. The broker sees RWS as a highly attractive business, with solid
top line growth, a good track record in acquisitions, and strong cash genera-
tion. Numis leaves its profits before tax and earnings forecasts unchanged.
ANALYSIS l Homeserve
260
280
300
320
240
220
Dec Jan Feb
p
250.00
13 Feb
HOMESERVE
N+1 Brewin has moved its rating on the emergency home repairs and insur-
ance firm from reduce to hold and reduces its target price from 275p to
260p following an interim management statement last week, which prompt-
ed another downgrade to estimates and flagged potential exceptional costs.
The broker says the shares are fairly valued given longer-term growth oppor-
tunities, but says uncertain UK conditions could trigger further shocks.
ANALYSIS l Faroe Petroleum
170
155
160
165
150
145
140
Dec Jan Feb
p
165.00
13 Feb
FAROE PETROLEUM
Seymour Pierce has initiated coverage on several Aim-listed oil and gas firms
including the Atlantic Margin-focused Faroe Petroleum, which it rates as a
buy with a target price of 306p. The broker says Faroe has a robust mix of
production growth and high impact exploration, plus a strong balance sheet
to fund planned drilling, appraisals and development. The companys review of
its Norwegian assets is also expected to boost long-term production.
p
14Nov 2Dec 22Dec 3Feb 16Jan
6,000
5,200
5,000
5,400
5,600
5,800
ANALYSIS l FTSE
5,905.70
13 Feb
Avoca Capital
The European credit investment manager has
strengthened its credit offering by hiring
Credit Suisse banker Vaibhav Piplapure, who
joins as head of structured and illiquid credit.
At Credit Suisse, Piplapure was most recently
head of asset finance for Europe in the securi-
tised products group. Prior to that, he was
global head of the credit solutions group. He
will initially focus on managing allocations to
structured credit from Avocas 500 mm
credit opportunities fund.
LON GD ONCE FIX AM...........1727.00 11.50
SILVER LDN FIX AM ..................33.72 0.08
MAPLE LEAF 1 OZ ....................36.28 0.14
LON PLATINUM AM................1663.00 15.00
LON PALLADIUM AM...............703.00 1.00
ALUMINIUM CASH .................2218.00 -14.00
COPPER CASH ......................8590.00 70.00
LEAD CASH...........................2168.00 85.00
NICKEL CASH......................21025.00 -320.00
TIN CASH.............................25495.00 340.00
ZINC CASH ............................2112.00 5.00
BRENT SPOT INDEX................117.22 -0.95
SOYA .....................................1229.00 2.00
COCOA..................................2156.00 -80.00
COFFEE...................................215.30 -0.70
KRUG.....................................1785.20 3.10
WHEAT ....................................163.00 -2.00
AIR LIQUIDE........................................98.06 0.60 100.65 80.90
ALLIANZ..............................................88.08 1.10 108.85 56.16
ANHEUS-BUSCH INBEV ....................49.13 0.59 49.13 33.85
ARCELORMITTAL...............................17.04 0.16 28.19 10.47
AXA......................................................12.42 0.07 16.10 7.88
BANCO SANTANDER...........................6.48 0.02 9.00 4.94
BASF SE..............................................60.73 0.35 70.22 42.19
BAYER.................................................55.00 0.80 59.44 35.36
BBVA......................................................7.14 0.00 9.17 4.94
BMW ....................................................70.56 0.69 73.85 43.49
BNP PARIBAS.....................................34.33 -0.73 59.93 22.72
CARREFOUR ......................................17.68 0.01 31.64 14.66
CRH PLC .............................................15.25 0.02 17.40 10.28
DAIMLER.............................................47.05 0.70 57.22 29.02
DANONE..............................................48.45 -0.02 53.16 41.92
DEUTSCHE BANK..............................33.65 0.18 48.70 20.79
DEUTSCHE BOERSE .........................48.79 -0.06 62.48 35.65
DEUTSCHE TELEKOM.........................8.90 -0.01 11.38 7.88
E.ON.....................................................16.35 -0.03 25.00 12.50
ENEL......................................................3.29 0.04 4.86 2.78
ENI .......................................................17.29 0.21 18.66 11.83
FRANCE TELECOM............................11.34 0.09 16.65 11.09
GDF SUEZ ...........................................19.44 -0.12 30.05 17.65
GENERALI ASS...................................12.12 0.09 17.05 10.34
IBERDROLA..........................................4.65 -0.02 6.10 4.16
INDITEX ...............................................68.03 -0.54 69.40 50.92
ING GROEP CVA...................................6.61 0.13 9.50 4.21
INTESA SANPAOLO.............................1.49 -0.03 2.47 0.85
KON.PHILIPS ELECTR.......................15.64 0.11 24.12 12.01
L'OREAL..............................................81.65 0.27 91.24 68.83
LVMH..................................................124.40 0.75 132.65 94.16
MUNICH RE.......................................106.85 1.00 126.00 77.80
NOKIA....................................................3.77 -0.01 8.43 3.33
REPSOL YPF.......................................21.01 0.11 24.90 17.31
RWE.....................................................32.16 0.53 53.47 21.15
SAINT-GOBAIN...................................35.34 0.57 47.64 26.07
SANOFI ................................................56.78 0.47 57.42 42.85
SAP......................................................47.85 -0.02 48.43 32.88
SCHNEIDER ELECTRIC.....................47.76 0.28 61.83 35.00
SIEMENS .............................................74.49 0.12 99.39 62.13
SOCIETE GENERALE.........................22.74 -0.51 52.70 14.32
TELECOM ITALIA..................................0.81 0.01 1.16 0.70
TELEFONICA ......................................13.07 -0.09 18.59 12.50
TOTAL..................................................41.04 0.46 44.55 29.40
UNIBAIL-RODAMCO SE...................144.05 1.30 162.95 123.30
UNICREDIT............................................4.06 -0.16 13.34 2.20
UNILEVER CVA...................................25.58 0.34 27.16 20.90
VINCI ....................................................38.08 -0.03 45.48 28.46
VIVENDI ...............................................16.23 0.12 21.37 14.10
VOLKSWAGEN VORZ ......................144.40 3.70 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5905.70 53.31 0.91
FTSE 250 INDEX. . . . . . . . 11275.60 107.99 0.97
FTSE UK ALL SHARE . . . . 3052.15 27.53 0.91
FTSE AIMALL SH . . . . . . . . 799.97 5.30 0.67
DOWJONES INDUS 30 . . 12874.04 72.81 0.57
S&P 500 . . . . . . . . . . . . . . . 1351.77 9.13 0.68
NASDAQ COMPOSITE . . . 2931.39 27.51 0.95
FTSEUROFIRST 300 . . . . . 1071.63 7.58 0.71
NIKKEI 225 . . . . . . . . . . . . . 8999.18 52.01 0.58
DAX 30 PERFORMANCE. . 6738.47 45.51 0.68
CAC 40 . . . . . . . . . . . . . . . . 3384.55 11.41 0.34
SHANGHAI SE INDEX . . . . 2351.86 -0.13 -0.01
HANG SENG. . . . . . . . . . . 20887.40 103.54 0.50
S&P/ASX 20 INDEX . . . . . . 2571.10 28.70 1.13
ASX ALL ORDINARIES . . . 4359.40 36.80 0.85
BOVESPA SAO PAOLO. . 65691.53 1693.67 2.65
ISEQ OVERALL INDEX . . . 3098.26 -3.58 -0.12
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 884.19 -1.08 -0.12
SWISS MARKET INDEX. . . 6177.44 46.78 0.76
Price Chg %chg
3M........................................................88.03 0.89 98.19 68.63
ABBOTT LABS ...................................55.16 0.05 56.84 45.28
ALCOA ................................................10.33 0.04 18.47 8.45
ALTRIA GROUP..................................29.23 0.02 30.40 23.20
AMAZON.COM..................................191.59 6.05 246.71 160.59
AMERICAN EXPRESS........................52.07 0.26 53.80 41.30
AMGEN INC.........................................68.20 0.84 70.00 47.66
APPLE...............................................502.60 9.18 503.83 310.50
AT&T....................................................30.04 0.20 31.94 27.27
BANK OF AMERICA.............................8.25 0.18 14.95 4.92
BERKSHIRE HATAW B.......................79.44 0.65 87.65 65.35
BOEING CO.........................................74.85 -0.10 80.65 56.01
CATERPILLAR..................................113.70 1.95 116.55 67.54
CHEVRON.........................................106.38 1.10 110.99 86.68
CISCO SYSTEMS................................20.03 0.14 20.49 13.30
CITIGROUP.........................................32.88 -0.05 49.60 21.40
COCA-COLA.......................................68.44 0.50 71.77 61.29
COMCAST CLASS A..........................27.41 0.24 27.52 19.19
CONOCOPHILLIPS.............................72.81 0.56 81.80 58.65
DU PONT(EI) DE NMR........................50.60 -0.55 57.00 37.10
EXXON MOBIL....................................84.42 0.62 88.23 63.47
GENERAL ELECTRIC.........................19.07 0.18 21.65 14.02
GOLDMAN SACHS GRP ..................114.53 0.41 169.90 84.27
GOOGLE A........................................612.20 6.29 670.25 473.02
HEWLETT PACKARD.........................28.75 0.05 49.39 19.92
HOME DEPOT.....................................45.93 0.60 46.11 28.13
IBM.....................................................192.62 0.20 194.90 151.71
INTEL CORP .......................................26.70 0.01 27.00 19.16
J.P.MORGAN CHASE.........................38.30 0.69 48.36 27.85
JOHNSON & JOHNSON.....................64.68 0.08 68.05 55.76
KRAFT FOODS A................................38.40 -0.18 39.06 24.30
MC DONALD'S CORP ........................99.65 0.18 102.22 72.89
MERCK AND CO. NEW.......................38.11 0.20 39.43 29.47
MICROSOFT........................................30.58 0.09 30.80 23.65
OCCID. PETROLEUM.......................104.06 1.36 117.89 66.36
ORACLE CORP...................................28.43 -0.07 36.50 24.72
PEPSICO.............................................63.69 -0.26 71.89 58.50
PFIZER ................................................21.30 0.25 22.17 16.63
PHILIP MORRIS INTL .........................81.61 1.17 81.89 58.87
PROCTER AND GAMBLE ..................64.23 0.35 67.72 56.57
QUALCOMM INC ................................61.74 0.01 61.99 45.98
SCHLUMBERGER ..............................78.03 0.86 95.64 54.79
TRAVELERS CIES..............................58.99 -0.39 64.17 45.97
UNITED TECHNOLOGIE ....................84.88 1.38 91.83 66.87
UNITEDHEALTH GROUP...................53.85 0.53 54.24 41.27
VERIZON COMMS ..............................38.13 0.44 40.48 32.28
VISA CL A..........................................112.71 -1.19 115.17 70.45
WAL-MART STORES..........................61.79 -0.11 62.63 48.31
WALT DISNEY CO ..............................41.79 0.34 44.34 28.19
WELLS FARGO & CO.........................30.62 0.36 34.19 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.281 0.00
LIBOR Euro - 12 months ................1.665 0.00
LIBOR USD - overnight...................0.142 0.00
LIBOR USD - 12 months.................1.067 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.140 -0.06
European repo rate.........................0.229 0.00
Euro Euribor ....................................0.373 0.05
The vix index ...................................20.79 -1.45
The baItic dry index ........................715.0 0.00
Markit iBoxx...................................240.33 -2.50
Markit iTraxx..................................134.39 0.09
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .320.0 2.2 356.5 248.1
Chemring Group . . . .418.0 0.6 736.5 368.8
Cobham . . . . . . . . . . .191.8 2.8 236.5 165.9
Meggitt . . . . . . . . . . . .365.0 -1.1 397.6 304.9
QinetiQ Group . . . . . .142.5 0.1 144.6 101.5
RoIIs-Royce HoIdi . . .779.5 7.0 786.5 557.5
Senior . . . . . . . . . . . . .182.8 2.5 190.6 132.6
UItra EIectronics . . .1620.0 6.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .219.3 2.1 245.0 157.0
BarcIays . . . . . . . . . . .237.0 2.9 333.6 138.9
HSBC HoIdings . . . . .564.4 6.8 730.9 463.5
LIoyds Banking Gr . . .35.3 0.8 69.3 21.8
RoyaI Bank of Sco . . .28.1 0.2 49.0 17.3
Standard Chartere .1612.5 25.5 1712.5 1169.5
AG Barr . . . . . . . . . .1246.0 -7.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .378.9 3.7 444.0 289.9
Diageo . . . . . . . . . . .1503.0 19.5 1503.0 1112.0
SABMiIIer . . . . . . . . .2537.5 17.5 2537.5 1979.0
AZ EIectronic Mat . . .311.9 0.9 338.1 206.1
Croda Internation . .2052.0 22.0 2081.0 1473.0
EIementis . . . . . . . . . .164.1 3.3 187.4 107.5
Johnson Matthey . .2270.0 44.0 2281.0 1523.0
Victrex . . . . . . . . . . .1305.0 -9.0 1590.0 1025.0
YuIe Catto & Co . . . . .207.5 2.7 253.0 148.0
C/$ 1.3213 0.0015
C/ 0.8372 0.0004
C/ 102.47 0.0726
/C 1.1945 0.0007
/$ 1.5778 0.0024
/ 122.40 0.1290
FTSE 100
5905.70
53.31
FTSE 250
11275.60
107.99
FTSE ALLSHARE
3052.15
27.53
DOW
12874.04
72.81
NASDAQ
2931.39
27.51
S&P 500
1351.77
9.13
Smith (DS) . . . . . . . . .171.3 0.8 183.4 113.3
Smiths Group . . . . .1050.0 0.0 1426.0 869.5
Brown (N.) Group . . .255.3 3.2 304.5 227.0
Carpetright . . . . . . . . .578.0 23.0 770.5 375.0
Debenhams . . . . . . . . .70.4 0.9 74.8 51.2
Dignity . . . . . . . . . . . .779.0 0.0 854.5 648.5
Dixons RetaiI . . . . . . .14.8 -0.2 22.1 9.4
DuneImGroup . . . . . .503.0 5.4 524.5 383.9
HaIfords Group . . . . .325.0 0.0 409.7 268.6
Home RetaiI Group . .109.3 2.3 235.0 72.5
Inchcape . . . . . . . . . .366.1 2.1 425.4 268.1
JD Sports Fashion . .836.0 34.0 1030.0 570.0
Kesa EIectricaIs . . . . .82.2 1.2 151.4 60.2
Kingfisher . . . . . . . . .272.0 0.6 287.1 217.0
Marks & Spencer G . .348.8 -1.4 402.2 301.8
Next . . . . . . . . . . . . .2741.0 8.0 2810.0 1868.0
Sports Direct Int . . . .261.0 2.0 266.2 159.8
WH Smith . . . . . . . . . .537.5 6.0 559.0 433.8
Smith & Nephew . . . .635.5 1.0 742.0 521.0
Synergy HeaIth . . . . .860.0 -0.5 981.0 808.0
Barratt DeveIopme . .121.8 4.3 121.8 67.5
BeIIway . . . . . . . . . . . .798.0 8.5 798.0 540.5
BerkeIey Group Ho .1295.0 20.0 1360.0 960.0
BaIfour Beatty . . . . . .285.0 1.4 357.3 214.6
CRH . . . . . . . . . . . . .1279.0 3.0 1700.0 1053.0
GaIIiford Try . . . . . . . .512.0 12.4 530.0 332.8
Kier Group . . . . . . . .1461.0 3.0 1477.0 1097.0
Drax Group . . . . . . . .530.5 14.5 581.5 371.9
SSE . . . . . . . . . . . . . .1260.0 -1.0 1423.0 1181.0
Domino Printing S . .610.0 0.0 705.0 434.3
HaIma . . . . . . . . . . . . .376.2 0.4 429.6 306.3
Laird . . . . . . . . . . . . . .167.0 0.5 207.0 127.9
Morgan CrucibIe C . .329.0 3.9 357.1 224.0
Oxford Instrument .1102.0 6.0 1108.0 600.5
Renishaw . . . . . . . . .1462.0 8.0 1886.0 800.0
Spectris . . . . . . . . . .1646.0 17.0 1679.0 1039.0
Aberforth SmaIIer . . .609.0 5.0 714.0 494.0
AIIiance Trust . . . . . .364.8 1.8 392.7 310.2
Bankers Inv Trust . . .405.0 3.0 428.0 346.5
BH GIobaI Ltd. GB .1180.0 9.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.7 0.2 12.2 10.4
BH Macro Ltd. EUR . . .19.6 -0.0 20.2 16.3
BH Macro Ltd. GBP 2039.0 13.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.7 0.0 20.2 16.2
BIackRock WorId M .722.5 0.5 815.5 574.5
BIueCrest AIIBIue . . .164.1 2.8 176.2 160.6
British Assets Tr . . . .126.0 1.0 139.5 109.0
British Empire Se . . .443.7 2.6 533.0 404.0
CaIedonia Investm .1500.0 5.0 1816.0 1337.0
City of London In . . .295.0 2.4 306.9 257.0
Dexion AbsoIute L . .140.2 0.6 151.0 130.0
Edinburgh Dragon . .244.2 2.5 252.0 201.4
Edinburgh Inv Tru . . .474.2 2.2 492.2 414.9
EIectra Private E . . .1645.0 2.0 1755.0 1287.0
F&C Inv Trust . . . . . .306.4 2.1 327.9 261.5
FideIity China Sp . . . . .82.4 1.3 114.3 70.0
FideIity European . .1091.0 0.0 1287.0 912.0
HeraId Inv Trust . . . . .508.0 2.0 545.5 419.0
HICL Infrastructu . . .120.1 0.3 121.3 112.7
Impax Environment .102.0 2.0 125.4 88.5
John Laing Infras . . .110.6 0.3 110.6 103.4
JPMorgan American .916.0 6.5 924.0 721.5
JPMorgan Asian In . .201.9 2.4 244.0 170.1
JPMorgan Emerging .560.5 0.0 610.5 480.1
JPMorgan European .727.0 8.5 983.5 624.0
JPMorgan Indian I . . .384.0 1.7 459.0 313.1
JPMorgan Russian .561.5 5.0 741.0 415.1
Law Debenture Cor . .373.0 4.4 385.0 321.0
MercantiIe Inv Tr . . . .997.0 11.5 1137.0 823.0
Merchants Trust . . . .383.9 4.3 431.8 341.5
Monks Inv Trust . . . .332.7 2.5 367.9 298.1
Murray Income Tru . .654.5 6.5 673.0 568.0
Murray Internatio . . .971.0 7.5 991.5 818.5
PerpetuaI Income . . .264.5 1.9 276.0 236.5
PersonaI Assets T .34390.0 130.0 34391.030210.0
PoIar Cap TechnoI . .366.0 3.9 391.2 299.5
RIT CapitaI Partn . . .1236.0 9.0 1360.0 1173.0
Scottish Inv Trus . . . .483.0 4.4 524.0 417.0
Scottish Mortgage . .687.0 9.0 781.0 565.0
SVG CapitaI . . . . . . . .254.0 -0.8 279.8 165.1
TempIe Bar Inv Tr . . .901.5 9.0 952.0 791.0
TempIeton Emergin .622.5 10.0 684.5 497.0
TR Property Inv T . . .154.2 1.9 206.1 136.2
TR Property Inv T . . . .70.1 0.6 94.0 59.8
Witan Inv Trust . . . . .488.9 6.3 533.0 401.5
3i Group . . . . . . . . . . .199.5 2.7 317.0 166.9
3i Infrastructure . . . .123.4 0.8 124.0 113.4
Aberdeen Asset Ma .263.6 3.0 267.1 167.8
Ashmore Group . . . .395.3 6.4 420.0 301.5
Brewin DoIphin Ho . .156.6 2.1 185.4 113.7
CameIIia . . . . . . . . . .9945.0 195.010950.0 8800.0
CharIes TayIor Co . . .144.0 8.0 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .357.3 -1.5 445.0 304.3
CIose Brothers Gr . . .704.5 4.5 875.0 590.0
CoIIins Stewart H . . . .97.8 -0.3 98.0 48.5
F&C Asset Managem .68.7 0.7 88.1 56.1
Hargreaves Lansdo .465.6 9.8 646.5 402.5
HeIphire Group . . . . . . .1.9 -0.2 17.4 1.4
Henderson Group . . .127.6 4.5 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .368.1 1.5 552.5 311.6
IG Group HoIdings . .476.7 0.9 502.5 393.6
Intermediate Capi . . .284.5 1.6 345.0 197.9
InternationaI Per . . . .212.5 4.6 388.8 148.5
InternationaI Pub . . .121.0 0.0 121.5 108.6
Investec . . . . . . . . . . .391.4 6.5 522.0 318.4
IP Group . . . . . . . . . . .101.0 -0.8 103.0 36.0
Jupiter Fund Mana . .247.1 6.1 337.3 184.9
Liontrust Asset M . . . .90.9 1.0 91.8 57.9
LMS CapitaI . . . . . . . . .56.5 0.5 64.8 53.8
London Finance & . . .22.5 0.0 23.5 19.0
London Stock Exch .940.0 16.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.8 0.0 19.8 8.9
Man Group . . . . . . . . .131.2 0.9 309.0 104.5
Paragon Group Of . .186.6 2.9 206.1 134.6
Provident Financi . . .989.5 20.0 1124.0 915.0
Rathbone Brothers .1222.0 -12.0 1250.0 977.0
Record . . . . . . . . . . . . .11.6 0.0 35.5 11.3
RSM Tenon Group . . . .6.0 0.3 55.0 5.5
Schroders . . . . . . . .1602.0 6.0 1906.0 1183.0
Schroders (Non-Vo .1282.0 9.0 1554.0 970.0
TuIIett Prebon . . . . . .317.0 6.3 428.6 262.3
WaIker Crips Grou . . .40.0 0.0 51.5 40.0
BT Group . . . . . . . . . .215.7 1.7 216.0 161.0
CabIe & WireIess . . . .38.0 1.7 51.2 31.3
CabIe & WireIess . . . .28.5 8.8 76.9 14.2
COLT Group SA . . . . .92.8 1.4 156.2 84.1
KCOM Group . . . . . . . .73.3 -0.8 84.0 58.0
TaIkTaIk TeIecom . . .137.8 5.1 151.7 118.9
TeIecomPIus . . . . . . .645.0 15.5 802.0 440.0
Booker Group . . . . . . .76.0 0.7 80.0 54.5
Greggs . . . . . . . . . . . .543.5 8.0 550.5 445.0
Morrison (Wm) Sup .291.0 0.3 328.0 268.5
Ocado Group . . . . . . .104.4 -1.8 259.3 52.9
Sainsbury (J) . . . . . . .291.1 0.7 389.3 263.5
Tesco . . . . . . . . . . . . .319.4 -1.3 420.1 312.4
Associated Britis . . .1199.0 7.0 1200.0 940.0
Cranswick . . . . . . . . .836.5 2.0 862.0 588.5
Dairy Crest Group . . .332.6 1.8 409.7 311.0
Devro . . . . . . . . . . . . .282.3 3.8 296.9 228.0
Tate & LyIe . . . . . . . . .690.0 5.0 720.5 520.0
UniIever . . . . . . . . . .2075.0 24.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .536.0 6.0 664.0 413.5
Centrica . . . . . . . . . . .291.5 3.0 345.8 278.8
InternationaI Pow . . .331.3 1.6 347.7 279.4
NationaI Grid . . . . . . .639.0 6.5 649.5 543.5
Pennon Group . . . . . .686.5 1.0 737.5 584.5
Severn Trent . . . . . .1526.0 7.0 1600.0 1375.0
United UtiIities . . . . .597.5 1.0 637.0 551.0
Cookson Group . . . . .621.5 11.0 724.5 395.8
Rexam . . . . . . . . . . . .379.8 1.1 400.0 299.8
RPC Group . . . . . . . .389.7 -0.3 393.2 231.5
Price Chg High Low
Bovis Homes Group .493.3 8.9 499.6 326.5
Persimmon . . . . . . . .559.0 8.0 561.5 374.0
Reckitt Benckiser . .3534.0 -7.0 3578.0 3015.0
Redrow . . . . . . . . . . . .129.1 0.7 136.2 103.5
TayIor Wimpey . . . . . . .44.5 0.8 44.8 28.7
Bodycote . . . . . . . . . .330.5 5.4 397.7 225.6
Fenner . . . . . . . . . . . .457.0 -8.7 472.5 280.0
IMI . . . . . . . . . . . . . . . .921.0 12.0 1119.0 636.5
MeIrose . . . . . . . . . . .374.6 0.2 388.0 268.0
Northgate . . . . . . . . . .250.0 4.6 346.7 190.9
Rotork . . . . . . . . . . .1974.0 23.0 2009.0 1501.0
Spirax-Sarco Engi . .1994.0 -13.0 2089.0 1649.0
Weir Group . . . . . . .1983.0 -14.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .424.9 12.9 460.5 315.0
Ferrexpo . . . . . . . . . . .344.1 10.1 499.0 238.7
TaIvivaara Mining . . .343.4 8.1 609.0 195.2
BBAAviation . . . . . . .197.0 3.9 240.8 156.0
Stobart Group Ltd . . .127.3 0.3 155.4 112.0
AdmiraI Group . . . . . .968.0 4.0 1754.0 787.0
AmIin . . . . . . . . . . . . .355.4 3.6 427.0 270.6
BeazIey . . . . . . . . . . . .147.7 0.6 150.5 109.6
Informa . . . . . . . . . . . .411.6 1.4 461.1 313.9
ITE Group . . . . . . . . . .230.6 -1.2 258.2 157.7
ITV . . . . . . . . . . . . . . . . .79.7 0.8 93.5 51.7
Johnston Press . . . . . . .6.3 0.0 12.8 4.1
MecomGroup . . . . . .203.3 -1.8 310.0 134.5
Moneysupermarket. .121.9 2.6 123.3 84.8
Pearson . . . . . . . . . .1197.0 9.0 1255.0 1013.0
PerformGroup . . . . .258.5 -9.6 271.0 150.0
Reed EIsevier . . . . . .534.0 3.5 590.5 461.3
Rightmove . . . . . . . .1329.0 13.0 1408.0 857.0
STV Group . . . . . . . . .111.0 6.0 168.0 76.3
Tarsus Group . . . . . .147.5 0.0 165.0 119.5
Trinity Mirror . . . . . . . .48.5 0.8 89.0 37.5
UBM . . . . . . . . . . . . . .579.5 9.0 725.0 416.0
UTV Media . . . . . . . . .123.1 0.8 150.0 92.5
WiImington Group . . .83.5 0.0 175.0 78.5
WPP . . . . . . . . . . . . . .793.5 15.0 846.5 578.0
YeII Group . . . . . . . . . . .5.9 0.1 11.0 3.4
African Barrick G . . .518.0 4.5 616.5 393.5
AIIied GoId Minin . . .130.0 -2.0 281.3 34.4
AngIo American . . .2817.0 70.5 3437.0 2138.5
AngIo Pacific Gro . . .312.0 0.2 369.3 237.9
Antofagasta . . . . . . .1348.0 25.0 1491.0 900.5
Aquarius PIatinum . .149.3 -0.7 419.0 146.8
BHP BiIIiton . . . . . . .2082.5 25.0 2631.5 1667.0
CatIin Group Ltd. . . .427.0 -9.5 449.0 334.0
Hiscox Ltd. . . . . . . . . .404.9 -5.0 424.7 340.5
Jardine LIoyd Tho . . .675.0 2.0 764.5 576.0
Lancashire HoIdin . . .750.0 10.5 774.5 532.5
RSA Insurance Gro . .112.2 2.0 143.5 99.6
Aviva . . . . . . . . . . . . . .368.0 6.7 477.9 275.3
LegaI & GeneraI G . . .119.3 0.7 123.8 89.8
OId MutuaI . . . . . . . . .158.3 3.2 159.1 98.1
Phoenix Group HoI . .567.5 6.5 688.0 451.1
PrudentiaI . . . . . . . . .716.5 2.5 777.0 509.0
ResoIution Ltd. . . . . .271.0 1.2 316.1 229.5
St James's PIace . . . .375.0 9.3 379.3 294.0
Standard Life . . . . . . .227.9 2.8 244.7 172.0
4Imprint Group . . . . .268.8 7.8 295.0 200.0
Aegis Group . . . . . . .165.1 0.4 166.9 115.7
BIoomsbury PubIis . .124.0 6.0 138.0 91.3
British Sky Broad . . .700.0 6.0 850.0 618.5
Centaur Media . . . . . . .39.0 0.1 73.0 32.5
Chime Communicati .249.3 -5.8 298.5 163.0
Creston . . . . . . . . . . . .57.4 1.9 121.0 47.0
DaiIy MaiI and Ge . . .435.1 -1.9 570.0 343.4
Euromoney Institu . .710.0 -2.5 738.0 522.5
Future . . . . . . . . . . . . . .13.1 0.0 30.0 8.3
Haynes PubIishing . .195.0 0.0 257.0 195.0
Huntsworth . . . . . . . . .42.3 1.8 81.0 32.3
Bumi . . . . . . . . . . . . . .760.0 0.0 739.5 763.5
Centamin (DI) . . . . . . . .97.1 0.6 154.2 78.5
Eurasian NaturaI . . .702.0 17.5 1020.6 522.0
FresniIIo . . . . . . . . . .1773.0 19.0 2150.0 1302.0
GemDiamonds Ltd. .236.0 2.6 306.0 179.8
GIencore Internat . . .429.3 -6.0 531.1 348.0
HochschiId Mining . .517.5 -3.0 680.0 365.9
Kazakhmys . . . . . . .1139.0 15.0 1579.0 730.0
Kenmare Resources . .58.5 5.4 59.9 31.0
Lonmin . . . . . . . . . . .1035.0 20.0 1880.0 941.0
New WorId Resourc .517.5 -7.5 1060.0 409.4
PetropavIovsk . . . . . .716.0 2.0 1090.0 543.5
PoIymetaI Interna . .1100.0 -24.0 1175.0 877.0
RandgoId Resource 7145.0 -55.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3845.5 73.5 4682.0 2712.5
Vedanta Resources 1282.0 22.0 2518.0 928.0
Xstrata . . . . . . . . . . .1213.0 15.0 1550.0 764.0
Inmarsat . . . . . . . . . . .467.9 9.3 719.5 389.3
Vodafone Group . . . .174.4 1.8 182.8 155.1
Genesis Emerging . .505.0 10.5 548.5 424.0
Afren . . . . . . . . . . . . . .131.5 -0.5 171.2 73.6
BG Group . . . . . . . . .1468.0 -10.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .496.0 5.7 497.5 363.2
Cairn Energy . . . . . . .348.0 -2.8 531.8 291.9
EnQuest . . . . . . . . . . .117.3 1.5 158.5 85.7
Essar Energy . . . . . .129.0 0.0 525.5 120.0
ExiIIon Energy . . . . . .257.6 -2.9 469.7 184.2
Heritage OiI . . . . . . . .195.9 4.6 332.2 160.0
Ophir Energy . . . . . . .374.0 9.4 376.0 184.5
Premier OiI . . . . . . . . .420.5 3.1 521.0 310.0
RoyaI Dutch SheII . .2296.5 12.5 2402.0 1883.5
RoyaI Dutch SheII . .2326.0 18.5 2489.0 1890.5
SaIamander Energy .243.1 1.2 317.6 182.3
Soco Internationa . . .308.5 0.5 400.0 278.0
TuIIow OiI . . . . . . . . .1523.0 -9.0 1549.1 945.5
Amec . . . . . . . . . . . . .1112.0 17.0 1207.0 740.5
Hunting . . . . . . . . . . .793.0 4.5 845.0 530.0
Kentz Corporation . .468.2 3.2 508.0 347.0
LampreII . . . . . . . . . . .328.0 2.8 395.2 220.7
Petrofac Ltd. . . . . . .1532.0 20.0 1603.0 1108.0
Wood Group (John) .695.0 0.0 715.8 469.9
Burberry Group . . . .1393.0 -16.0 1600.0 1092.0
PZ Cussons . . . . . . . .317.7 2.4 387.9 285.0
Supergroup . . . . . . . .528.0 -28.5 1773.0 435.2
AstraZeneca . . . . . .3012.5 33.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .347.8 2.1 348.5 210.1
Genus . . . . . . . . . . . .1064.0 1.0 1111.0 853.5
GIaxoSmithKIine . . .1433.0 22.0 1497.0 1138.5
Hikma Pharmaceuti .742.0 10.0 869.0 555.5
Shire PIc . . . . . . . . . .2246.0 32.0 2272.0 1671.0
CapitaI & Countie . . .196.1 2.7 203.7 142.8
Daejan HoIdings . . .2980.0 26.0 3030.0 2282.0
F&C CommerciaI Pr .102.9 -0.1 108.0 92.6
Grainger . . . . . . . . . . .106.0 0.0 133.2 77.3
London & Stamford .110.8 -0.8 140.0 103.9
SaviIIs . . . . . . . . . . . . .360.5 -9.5 427.1 256.2
UK CommerciaI Pro . .73.9 -0.1 85.5 65.1
Unite Group . . . . . . . .195.7 0.7 224.1 152.9
Big YeIIow Group . . .300.0 0.0 344.4 218.0
British Land Co . . . . .495.2 3.4 629.5 444.0
CapitaI Shopping . . .337.1 4.1 408.6 288.7
Derwent London . . .1761.0 25.0 1880.0 1400.0
Great PortIand Es . . .366.4 2.9 445.0 312.9
Hammerson . . . . . . . .391.3 8.6 490.9 345.2
Hansteen HoIdings . . .75.0 1.7 89.5 68.0
Land Securities G . . .690.0 11.5 885.0 612.0
SEGRO . . . . . . . . . . . .234.1 3.7 331.3 195.0
Shaftesbury . . . . . . . .517.0 4.5 539.0 441.2
Aveva Group . . . . . .1704.0 -30.0 1799.0 1298.0
Computacenter . . . . .418.9 4.9 490.0 324.7
Fidessa Group . . . . .1616.0 -81.0 2109.0 1444.0
Invensys . . . . . . . . . . .212.2 -0.5 357.8 180.9
Logica . . . . . . . . . . . . .83.8 2.5 147.2 59.0
Micro Focus Inter . . .443.7 -1.3 455.0 242.9
Misys . . . . . . . . . . . . .290.3 0.2 420.2 214.9
Sage Group . . . . . . . .299.0 0.4 310.1 231.7
SDL . . . . . . . . . . . . . . .670.0 -3.0 711.5 586.0
TeIecity Group . . . . . .648.5 -4.5 666.5 450.5
Aggreko . . . . . . . . . .2180.0 5.0 2198.8 1394.5
Ashtead Group . . . . .252.5 6.8 254.1 99.4
Atkins (WS) . . . . . . . .759.0 10.0 820.0 490.2
Babcock Internati . . .742.0 -2.0 758.0 542.0
Berendsen . . . . . . . . .456.7 2.2 568.0 354.3
BunzI . . . . . . . . . . . . .878.0 6.0 906.5 676.5
Cape . . . . . . . . . . . . . .444.5 9.0 591.5 295.0
Capita . . . . . . . . . . . . .634.5 2.0 786.5 611.5
CariIIion . . . . . . . . . . .322.6 -0.4 403.2 281.0
De La Rue . . . . . . . . .994.5 6.5 1003.0 699.0
DipIoma . . . . . . . . . . .397.4 -0.3 425.5 263.5
EIectrocomponents .237.4 2.4 294.9 182.2
Experian . . . . . . . . . . .929.5 8.5 930.0 665.0
FiItrona PLC . . . . . . . .400.2 12.2 404.5 293.0
G4S . . . . . . . . . . . . . . .279.8 0.2 291.0 219.9
Hays . . . . . . . . . . . . . . .81.6 2.1 130.0 58.9
Homeserve . . . . . . . .250.1 -1.7 532.0 218.5
Howden Joinery Gr . .115.2 1.4 127.5 93.1
Interserve . . . . . . . . . .312.7 5.7 341.3 239.8
Intertek Group . . . . .2195.0 17.0 2214.0 1738.0
MichaeI Page Inte . . .427.4 8.3 567.0 323.0
Mitie Group . . . . . . . .264.6 3.2 271.0 195.9
PayPoint . . . . . . . . . . .575.5 5.5 585.0 327.3
Premier FarneII . . . . .219.7 3.3 308.8 144.5
Regus . . . . . . . . . . . . .110.1 2.5 119.0 64.0
RentokiI InitiaI . . . . . . .76.8 1.3 100.9 58.2
RPS Group . . . . . . . . .224.0 1.0 253.0 156.6
Serco Group . . . . . . .531.5 0.5 618.5 458.0
Shanks Group . . . . . .105.6 0.1 130.9 90.8
SIG . . . . . . . . . . . . . . .103.2 1.6 153.5 77.0
Travis Perkins . . . . . .955.0 17.5 1090.0 715.0
WoIseIey . . . . . . . . .2318.0 31.0 2338.0 1404.0
ARM HoIdings . . . . . .575.5 8.0 651.0 464.0
CSR . . . . . . . . . . . . . .232.6 -3.6 447.0 154.1
Imagination Techn . .617.5 -13.0 640.9 296.9
Spirent Communica .131.8 1.1 160.0 105.8
British American . .3129.5 20.5 3151.7 2300.0
ImperiaI Tobacco . .2454.0 15.0 2462.9 1878.0
Betfair Group . . . . . . .880.0 3.0 1030.0 567.0
Bwin.party Digita . . .171.3 0.4 204.0 100.6
CarnivaI . . . . . . . . . .1913.0 -49.0 2983.0 1742.0
Compass Group . . . .635.0 3.0 639.5 512.5
Domino's Pizza UK . .479.1 1.1 526.0 377.0
easyJet . . . . . . . . . . . .459.3 0.9 476.1 301.0
FirstGroup . . . . . . . . .304.9 1.0 378.0 301.8
Go-Ahead Group . . .1312.0 34.0 1598.0 1190.0
Greene King . . . . . . .520.5 3.0 524.5 410.0
InterContinentaI . . .1402.0 5.0 1435.0 955.0
InternationaI Con . . .175.3 -2.5 258.7 132.0
JD Wetherspoon . . . .410.0 1.8 468.3 380.5
Ladbrokes . . . . . . . . .147.4 0.7 155.3 114.0
Marston's . . . . . . . . . . .99.3 0.8 112.0 84.6
MiIIennium& Copt . .472.6 5.0 600.5 371.2
MitcheIIs & ButIe . . . .271.1 0.5 338.4 215.6
NationaI Express . . .227.3 2.6 270.2 201.6
Rank Group . . . . . . . .138.0 -0.2 153.7 109.5
Restaurant Group . . .303.4 -1.6 335.0 254.9
Spirit Pub Compan . . .55.5 -1.8 57.5 35.3
Stagecoach Group . .265.7 -4.1 287.4 200.0
TUI TraveI . . . . . . . . . .207.5 5.7 250.0 136.7
Whitbread . . . . . . . .1714.0 16.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .234.3 2.8 244.1 176.8
Abcam . . . . . . . . . . . .336.5 2.3 460.0 320.0
Advanced MedicaI . . .88.5 0.5 96.0 64.8
AIbemarIe & Bond . .368.5 -1.5 400.1 281.0
Amerisur Resource . .23.3 -1.3 29.0 9.5
Andor TechnoIogy . .545.0 -14.0 685.0 387.1
ArchipeIago Resou . . .69.0 0.0 79.0 55.5
ASOS . . . . . . . . . . . .1894.0 6.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.5 -0.3 92.0 16.0
Avanti Communicat .287.0 1.3 628.0 248.5
BIinkx . . . . . . . . . . . . . .69.0 1.5 158.0 50.5
Borders & Souther . . .69.0 -1.0 73.3 43.5
BowLeven . . . . . . . . . .79.0 1.8 382.3 62.0
Brooks MacdonaId .1152.5 5.0 1372.5 940.0
CIuff GoId . . . . . . . . . . .94.0 0.0 125.8 66.5
Cove Energy . . . . . . .146.0 7.0 147.0 61.0
Daisy Group . . . . . . .106.0 5.0 127.0 88.0
EMIS Group . . . . . . . .437.5 7.5 580.0 397.5
Faroe PetroIeum . . . .165.0 -5.0 190.0 130.0
GuIfsands PetroIe . . .173.3 1.0 342.0 142.5
GWPharmaceuticaI . .90.8 0.3 130.0 78.5
H&T Group . . . . . . . . .323.0 -22.3 395.0 277.0
Hargreaves Servic .1220.0 30.0 1220.0 855.0
HeaIthcare Locums . . . .3.6 -0.3 4.2 3.6
Immunodiagnostic . .409.5 2.0 1218.0 288.8
ImpeIIamGroup . . . .265.0 23.5 387.5 212.5
Iomart Group . . . . . . .140.8 -0.8 144.0 85.5
James HaIstead . . . . .490.0 5.0 500.0 410.0
London Mining . . . . .290.3 3.5 436.5 257.5
Lupus CapitaI . . . . . .127.5 -0.5 150.0 86.0
M. P. Evans Group . .450.5 3.0 475.0 371.0
Majestic Wine . . . . . .419.0 -7.0 510.0 315.0
May Gurney Integr . .292.5 0.0 302.0 234.0
Monitise . . . . . . . . . . . .36.5 0.0 40.0 20.5
MuIberry Group . . . .1885.0 -15.0 1925.0 1065.0
Nanoco Group . . . . . . .62.5 -1.0 93.3 38.0
NauticaI PetroIeu . . .328.5 -4.8 452.0 223.5
NichoIs . . . . . . . . . . . .604.0 4.0 615.0 410.0
Numis Corporation . . .93.5 -1.5 126.0 72.0
Pan African Resou . . .17.5 -0.3 17.8 9.5
Patagonia GoId . . . . . .37.5 -2.3 70.0 36.0
Prezzo . . . . . . . . . . . . .64.5 -2.5 71.5 53.5
Pursuit Dynamics . . . .89.0 -2.0 409.0 67.0
Rockhopper ExpIor .357.3 -0.5 362.8 141.0
RWS HoIdings . . . . . .480.0 10.0 481.6 329.8
Secure Trust Bank .1005.0 -2.5 1025.0 755.0
Songbird Estates . . .105.0 2.0 160.3 102.0
VaIiant PetroIeum . . .468.0 34.0 645.0 400.0
Young & Co's Brew . .652.5 7.0 712.0 565.0
SVG CapitaI . . . . . . . .257.9 8.4
Oxford Instruments .1100.0 7.5
Kesa EIectricaIs . . . . .85.1 5.9
CatIin Group Ltd. . . .449.0 5.3
Smith (DS) . . . . . . . . .174.5 5.3
Amec . . . . . . . . . . . .1110.0 3.6
Domino Printing Sc .629.0 3.5
Unite Group . . . . . . . .193.4 3.4
Ashtead Group . . . . .245.0 3.3
Inmarsat . . . . . . . . . . .470.1 3.3
Supergroup . . . . . . . .559.5 -3.5
Aquarius PIatinum . .157.0 -3.4
Tate & LyIe . . . . . . . . .672.5 -3.2
Evraz . . . . . . . . . . . . .428.8 -3.0
Rank Group . . . . . . . .139.0 -2.8
AIIied GoId Mining . .135.9 -2.6
British Land Co . . . . .497.0 -2.2
Misys . . . . . . . . . . . . .292.3 -2.1
Ferrexpo . . . . . . . . . .353.7 -2.0
Shanks Group . . . . . .104.0 -2.0
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
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AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.29 -0.05 104.2 100.3
Tsy 5.250 12 . . . .101.56 -0.03 105.4 101.5
Tsy 9.000 12 . . . .103.75 -0.39 111.3 103.3
Tsy 4.500 13 . . . .104.36 -0.03 106.5 104.4
Tsy 2.500 13 . . . .283.20 -0.03 287.7 279.3
Tsy 8.000 13 . . . . .112.30 -0.02 116.9 112.2
Tsy 5.000 14 . . . . .111.63 -0.03 112.9 109.1
Tsy 7.750 15 . . . .100.00 0.00 106.3 99.4
Tsy 4.750 15 . . . . .114.50 0.03 115.4 108.6
Tsy 8.000 15 . . . .127.58 0.02 129.2 123.7
Tsy 2.500 16 . . . .342.57 0.16 344.2 312.1
Tsy 4.000 16 . . . . .113.71 0.16 114.7 104.9
Tsy 1.250 17 . . . . .115.73 0.20 116.6 106.7
Tsy 12.000 17 . . .121.50 0.38 128.7 120.7
Tsy 8.750 17 . . . .140.32 -0.16 141.9 132.9
Tsy 5.000 18 . . . .121.29 0.16 122.5 109.7
Tsy 4.500 19 . . . . .119.32 0.12 120.7 105.4
Tsy 3.750 19 . . . . .114.06 0.07 115.6 99.4
Tsy 4.750 20 . . . .121.34 -0.08 123.5 106.6
Tsy 2.500 20 . . . .363.23 0.02 367.1 314.0
Tsy 8.000 21 . . . .149.96 -0.26 153.4 133.8
Tsy 4.000 22 . . . . .115.22 -0.36 118.2 99.0
Tsy 1.875 22 . . . .126.33 -0.18 129.1 111.3
Tsy 2.500 24 . . . .327.27 -0.18 334.7 275.6
Tsy 5.000 25 . . . .126.53 -0.53 130.6 107.4
Tsy 1.250 27 . . . .122.64 -0.73 127.0 104.8
Tsy 4.250 27 . . . . .117.50 -1.12 122.7 97.9
Tsy 6.000 28 . . . .141.79 -1.13 148.0 119.5
Tsy 4.125 30 . . . . .311.73 -1.08 322.8 262.9
Tsy 4.750 30 . . . .123.86 -1.47 130.5 103.0
Tsy 4.250 32 . . . . .116.29 -1.67 123.1 96.0
Tsy 4.250 36 . . . . .116.26 -1.85 123.9 95.0
Tsy 4.750 38 . . . .125.37 -1.92 134.2 102.8
Tsy 4.500 42 . . . .121.71 -2.08 130.8 98.9
% %
T&Cs: Austin Reed branded merchandise only
"645*/3&&%$06,
MENS SUITS
FROM
179
MADE TO MEASURE SUITS
FROM
299
SALE
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CITYA.M. 14 FEBRUARY 2012 23
Wealth Management | Markets
T
HE release on bail yesterday of the terror
suspect Abu Qatada has generated head-
lines around the world. Once described
by a Spanish judge as Bin Ladens right-
hand man in Europe, Qatada is wanted in a
host of countries on serious charges. Our own
courts and Home Office regard him as a direct
threat to our national security.
And yet Qatada has successfully avoided
deportation for a decade, using every legal
avenue to stall the process, and eventually tak-
ing his case all the way to the European Court
of Human Rights in Strasbourg. The flawed
ruling blocking his deportation can still be
appealed, but Qatada has already been freed
on bail.
Meanwhile we must provide for his security
and invest in surveillance to uphold his strin-
gent bail conditions. This is on top of the con-
siderable taxpayer expense that Qatada has
incurred since he first arrived in the UK on a
forged passport in 1993. Since 2002, the direct
cost of dealing with Qatada following his
arrest will be almost 2m; and more in future
if he stays.
But the Qatada case is not really about the
money. It raises profound questions about
how Britain is governed, and what the cost to
the UK is of being seen to be unable to uphold
the security of the lawful majority who live
and work here.
Because of the UKs membership of the
European Convention on Human Rights
(ECHR), our own courts can now be overruled
by a ruling of a foreign court in Strasbourg.
Even in the most serious cases where our
national security is at stake, that institution is
increasingly willing to do so.
That means that our own laws cannot stand
if challenged directly by Strasbourg, even if
our own supreme court and parliament take a
different view. Unlike the supreme courts of
Canada or Australia, our own highest judicial
authority can be second-guessed by an interna-
tional tribunal.
This erosion of judicial independence fos-
ters a sense that Britain is no longer a state
that can freely determine its own laws.
Meanwhile human rights cases like Qatada
erode public support for rights by turning
them into a charter for the undeserving.
The British public sense that their govern-
ment cannot exclude those who seek to cause
them harm. As globalisation brings new rea-
sons to open up trade and with it borders,
states have to succeed in managing these
flows in ways that welcome the good but repel
the bad.
In recent years British immigration policy
has failed to prevent some of the individuals it
was intended to exclude from crossing our
borders. Our legal system has not been much
better at handling such cases once they are
here. The right to remain in the UK on the
grounds of the human right to a family life, in
line with article eight of the ECHR, was hard-
ly ever heard ten years ago it was exercised in
more than 400 cases last year.
A decade after 9/11, we live in an unstable
world, with chronic threats that are hard to
counter. Former mayor of New York Rudy
Giuliani argues that democracies need to get
better at building resilience while learning to
live with risk. This has a cost. It makes security
a bigger part of our lives. Queues at airports
get longer and the cost of security goes up
each year for businesses and their staff. Yet we
make it even harder for ourselves when
authorities cannot deal properly with clear
dangers.
When known terrorists cannot be tried in
open court they may be pursued for deporta-
tion for years. Even if charged and convicted
here, they may radicalise others while in
prison before being released prematurely. For
those dangerous individuals that cannot be
tried, or deported, or detained, our govern-
ment appears helpless.
How does this make Britain look in the eyes
of allied governments or overseas investors?
Cases like Qatada are not just an expensive
mess in legal and political terms they exact a
reputational cost. With Qatada perhaps
shortly to be followed by Abu Hamza back on
the streets again in time for the Olympics, how
safe does the UK seem?
We need Britain to be open for business, not
open for terror. We need well-policed borders
that keep the criminal and the dangerous
from arriving on our shores and immigration
rules that can remove them promptly if
required. We need domestic security measures
validated by our own courts that keep the
public safe, with politicians that can be held
accountable and not overruled by suprana-
tional bodies issuing rulings from afar.
And we need our political representatives to
appreciate that a country which cannot con-
trol its own affairs is not a country that can be
safe, let alone one that can thrive economical-
ly in a globalised world.
Blair Gibbs is the head of crime and justice at
Policy Exchange. www.policyexchange.org.uk
24
The Forum
CITYA.M. 14 FEBRUARY 2012
Cases like Qatada arent just
an expensive legal mess
they have a reputational cost
Freeing Abu Qatada showed
that Europe is the new judge
of Britains national security
cityam.com/forum
BLAIR GIBBS
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
Austerity with no
democratic check
will risk years of
scenes like these
The Greek riots
have unmasked
its tragic future
T
HERE is a sense of malaise in Brussels
after the terrible riots in Greece over the
weekend. Their growing ferocity and
frequency mean that EU politicians dis-
miss them at their own peril. In fact, this
could be a glimpse into Greeces future.
Assume everything goes to plan and the
Eurozone manages to muddle through; by
2015 Greek bailouts will have totalled 240bn.
This is over 100 per cent of Greek GDP and yet,
at that point, Greeces debt-to-GDP ratio will
still be around 140 per cent. Hardly good value
for taxpayers money. And this money has the
potential to cause even more divisions, rather
than bringing any clear sense of stability.
The latest package passed on Sunday com-
mits Greece to another three years of austerity
reviewing how painful the last two years
have been suggests this will probably not go as
smoothly as hoped. Specifically, the pro-
gramme commits Greece to 150,000 public
sector job cuts over the next three years.
Proportionately, as a share of population, that
is the same as cutting over 800,000 jobs from
the UK public sector, more than current UK
plans and at a faster rate. Greek public work-
ers and unions have no intention of giving in
without a fight. One can imagine a situation
where every parliamentary vote or every budg-
et announcement prompts a new wave of
protests. An early and most likely messy test
will be the Greek general elections in April. In
a sign of just how fine the line the Eurozone is
treading in pushing economic reforms at the
expense of democracy, the outcome of these
elections is largely irrelevant. A condition of
the second bailout deal is that all governing
parties have to commit, in writing, to imple-
ment the EU/ECB/IMF imposed austerity meas-
ures. The question is whether this is
sustainable.
The pressure being applied by the Eurozone
on both the economic front (through massive
austerity) and on the political front (by tying
all governing parties to the same policies)
leaves little room for manoeuvre or political
discourse, which increases the chances that
something may crack.
Even in an optimistic scenario, Greece will
need significant fiscal transfers for the best
part of a decade. Given that taxpayers from
around Europe are likely to demand some
level of control over how their money is spent
(as they rightly should) the Greek public could
be forced to accept tough economic policies
decided by people sitting in foreign capitals
for years to come. This also means that the
protests we saw in Athens yesterday could be
but a prelude of what is to come, as the
numerous rounds of austerity really start to
bite on the Greek population.
This all highlights the potential cost of try-
ing to force a country into a fiscal and politi-
cal straitjacket something which the
Eurozone seems intent on doing. The econom-
ic and political costs of a break-up or default
are widely cited. But the costs and risks of the
current bailout and austerity policy approach
are now coming to the surface. It may not
have reached tipping point yet but it is only a
matter of time before more and more people
start to question whether this economic and
social pain is a price worth paying for a shared
currency.
Raoul Ruparel is the head of economic research for
Open Europe.
Parental guidance
Well written, David Crow [Too
many children are being taken
into care, last Friday]. In a free
society such as ours, surely it is
better to leave children in the
care of their parents rather than
in institutions we must give
back to parents, often single
parents, the responsibility and
authority they once had, to raise
and discipline their children as
best they can, unhindered by do-
good legislation. The result may
be nowhere near the socially
accepted norm, but surely its
still better for most at-risk chil-
dren to grow up at the bottom
of the family bell curve than in
an institution.
Government policy is best
directed toward supporting par-
ents as they shoulder their
responsibilities, doing whatever
they can in their circumstances,
rather than toward cutting out
parental responsibility altogeth-
er by removing the children.
Mike Casebourne
@cityamforum
Dominic Raab hit the nail on the
head [Gender quotas are wrong
and dont work its time to
treat people as individuals, yes-
terday]. Gender quotas and posi-
tive discrimination are
anti-meritocratic and against
the whole equalities agenda.
David Spencer
@dspencer47
We want to hear your views.
email us: theforum@cityam.com
Top responses will be reprinted.
RAPID RESPONSES
RAOUL RUPAREL
BY ANTHONY J. EVANS
CITYA.M. 14 FEBRUARY 2012
The Forum
T
AX evasion is rife
in the UK. In the
last few months a
friend of mine
has spent over 1,000
on various household
jobs. On each occasion
the labourer was paid
in cash. Was VAT
included? Did the workman pay income tax? I have
other acquaintances who consider themselves left
of centre politically, but do not seem to feel com-
pelled to reveal their entire earnings to HMRC.
There is a double standard on tax fraud in Britain
today: a general sentiment that only the wealthy
are under an obligation to pay their taxes in full,
and that the morality of tax evasion is dependent
on how much you withhold.
I suspect that the economy is doing better than
official figures reveal, partly because increased
tax burdens and regulatory requirements give
incentives for legitimate business activity to go
underground. It is always a shame when other-
wise honest and devoted entrepreneurs are
pushed into illegal activity. Plumbers, electricians
and handymen should be the backbone of a com-
mercial community, not targets for zealous HMRC
informants. The role of the government is to facili-
tate entrepreneurship, not penalise it.
I know that I could pay less tax on my self-
employed earnings than I do, but feel that those
who advocate lower taxes have a moral duty to
ensure they are compliant. The reason I want sim-
pler and lower taxes is to encourage existing eco-
nomic activity to become public, and to encourage
more economic activity to take place.
Critics of flat taxes (where people pay the same
tax rate on all of their taxable income) imply that
these might have worked in Eastern Europe,
where tax evasion was rife, but that the UK econ-
omy is somehow different. The results were cer-
tainly impressive in Eastern Europe. As the chart
below shows, in Russia personal income tax rev-
enue rose from $8.3bn in 2001 (when the flat tax
was adopted) to $20.5bn in 2004.
It could happen here too. The UK has a massive
scope to raise the taxpaying base. Much of the
necessary activity is already happening, its just
done behind closed doors. Tax evasion isnt a rich
mans game, it has become a commonplace that
many otherwise honest workers engage in. Its
time to slash the level of tax evasion, not by turn-
ing a blind eye but by giving current evaders as
few excuses as possible to operate outside the
system. Simplifying the tax code and reducing tax
rates is the way to do so.
Anthony J. Evans is associate professor of
Economics at Londons ESCP Europe Business
School.
www.anthonyjevans.com
anthonyjevans@gmail.com
A nation of tax cheats
changed by new rules
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
$bn
2001 2004
5
0
10
15
20
25
ANALYSIS l Personal income tax revenue in Russia
Wealth Management | Trading
26 CITYA.M. 14 FEBRUARY 2012
O
NE of the absolute truths of the
current investment climate is that
investors are desperate for yield.
With both the Federal Reserve and
the European Central Bank emulating the
Bank of Japan by keeping rates at near
zero per cent for the foreseeable future,
savers have become starved for return.
For example, in the US, investors can now
expect to receive a whopping $12 dollars
of interest on a $100,000 6-month T-bill.
Put simply the rate of return on
$100,000 of 6 month US Treasuries will
not even pay the tab for a lunchtime ham-
burger at a run of the mill Manhattan
eatery. For savers, many of whom depend
on fixed income to supplement their
retirement the current situation is nothing
short of disaster.
When Fed Chairman Ben Bernanke
was asked about the impact of his zero
interest rate policy on savers, his
response was simple and direct
investors seeking yield should look to
equities not bonds for their returns. Little
wonder then that dividend-yielding
stocks have performed so well in the
recent stock market rally as many the
hunt for yield has made them the instru-
ment of choice in the current zero inter-
est rate environment.
Of course, dividends have always been
the key ingredient to stock market per-
formance. In fact, the only reason equi-
ties have outperformed bonds,
commodities and precious metals over a
long period of time has been due to the
compounding factor of dividends. Over
the past several decades, when stocks
boomed and capital appreciation was all
the rage, investors have forgotten that
lesson. But now they are flocking to high
dividend stocks in droves.
To illustrate the power of this phe-
nomenon, financial blogger Reformed
Broker took a look at the performance of
all US equities that recently declared
their first dividend. The results were
astounding. Of the approximately 40 or
so equity names that he tracked from 1
August 2011, only three stocks posted a
negative return. Furthermore, a a group
the new dividend yielding stocks outper-
formed the S&P 500 by a massive 15.67
per cent appreciating by 22.75 per
cent, while the index rose by 7.09 per
cent over the same period of time. In the
financial markets the verdict is clearly in
dividends rule and any stock that
declares one is likely to rally.
Which finally brings me to Apple.
Apple has been on a tear lately as
investors flocked to the stock in the
wake of its record breaking quarterly
results. The fundamental case of the
company is well known. Its products are
so superior to the competition that it
sometimes feels like it is playing on a
completely different level. The other day
at dinner with my sister, her fianc and
my children, I counted six iPhones at the
table and several iPads in our briefcases.
Given Apples recent sales numbers, I
have a feeling that our household is not
unique. With the iPad 3 and iPhone 5 on
the way, I have no doubt that demand
for its products will remain strong.
Despite the consumer euphoria the
Apple stock remains relatively modestly
valued trading at only 14 times trailing
earnings.
Yet thats not the reason I find the
stock attractive. The company is sitting
on a massive pile of cash. Apples
$97.6bn in cash and investments is larger
than the market value of all but 26 com-
panies in the Standard & Poors 500
index. The total could reach $150bn by
year-end if the company doesnt give
money back to shareholders, according
to many companies that follow the com-
pany. If Apple were to announce its first
dividend it would join that exalted club of
dividend paying stocks and would very
likely rally further as yield seeking
investors pile into the stock.
Furthermore, as the companys business
continues to grow it will very likely
increase its dividend in the near future,
prompting further appreciation in the
common stock.
CFD traders can approach the trade
two ways. They can take a more specula-
tive stance and assume a position now in
the hope that the company announces a
dividend soon. Or they can wait until
Apple actually announces its dividend
plans and take a position in the after-
math of the press release trying to ride
the positive price momentum that will
likely be unleashed by the news. Either
way the desperate hunt for yield and the
massive pile of cash on its balance sheet
will likely result in a winning combination
DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
THE HUNT FOR YIELD HAS
LED INVESTORS TO APPLE
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
USD
2011 Sep Oct Nov Dec 2012 Feb
480
400
380
360
340
420
440
460
ANALYSIS l The rise of Apple
Charting your way
to trading profits
With a grasp of these four basic patterns, you will have a
better idea of the direction to trade, writes Craig Drake
REVERSAL
DOUBLE TOP
DOUBLE top and double bottom chart patterns are
straightforward to spot and can be seen across a
range of different time frames, both in long and
short-term charts.
Double tops are important to look out for, as are
double bottoms, says Ian OSullivan, head of sales
for SpreadCo. They confirm a resistance point
that has been retested a second time and failed.
This pattern should be seen as a set up for a possi-
ble trend reversal, and so traders should wait for
the price to break below the neckline before enter-
ing the trade.
However, according to OSullivan, you need to look
out for additional clues to base a trading decision
on did volume drop on the second run up? Was it
a slightly lower high? Are the relative strength
indicators (RSI), stochastic and moving average
convergence-divergence (MACD) indicators turn-
ing lower, indicating weakness? Only then should
you consider making the trade and selling short or
closing a long.
CONTINUATION
HEAD AND SHOULDERS
Head and shoulders patterns are one of those
that a lot of people like to follow and trade, says
Ian OSullivan. He adds that the skeptics out there
would say that it is just another self-fulfilling
prophecy as traders jump on to a trade and help it
get to target levels but it is definitely a pattern
you should be looking out for and watching as
they form on a regular basis.
A head and shoulders formation can be a clear
warning that momentum is fading from the mar-
ket. The top of the head of the movement is
formed with volumes dropping. The right shoulder
is formed as the move runs out of momentum.
Another thing to watch out for though is when a
head and shoulders pattern fails, says OSullivan.
This can often result in a sharp move the other
way as traders scramble to close out and traders
taking the other side squeeze hard. OSullivan
adds: So look out for Head and Shoulders pat-
terns, but trade with caution.
Peak1 Peak2
Break Out
Neckline (support)
ANALYSIS l Double top
S
H
S
Neckline (support)
ANALYSIS l Head & shoulders
C
HOCOLATIER Thorntons will
be hoping it can keep investors
sweet, when it releases its lat-
est update this week. Its
Christmas update provided little
cheer, and it is somewhat hard to
believe that the market for slightly
upmarket chocolates has improved in
any way during the post-Christmas
season even if some Britons might
have turned to chocolate as solace
from the bleakness of January. The
companys main hope will have to be
Easter and the traditional splurge on
chocolate eggs and rabbits. Thorntons
can only hope that it avoids meltdown
in the meantime. IG Indexs price for
Thorntons is 15.46p-16.04p.
Dominos Pizza will announce pre-
liminary results tomorrow. Taking
into account the fact that the compa-
ny gave a quick in-line update in early
January, its unlikely there will be any
surprises here. Pre-tax profit figures
will be more or less in line with guid-
ance around 42m. Like-for-like sales
are expected to show decline. CMC
Markets quotes 478.24p-479.23p.
Sports Direct reports earnings
tomorrow and it is expected to show
it is on track for continued growth.
The shares are running strong this
year, scoring an impressive 22 per
cent gain year-to-date. There is a
hurdle ahead at 264p, which held it
in 2011, but once clear of that the
next target is its flotation price of
300p. Spread Co quotes 59.83p-
260.63p.
Barclays was one of Fridays
biggest movers, after the banking
giant released its full-year earnings
for 2011. The investment banking
division disappointed, but the share
price recovered strongly from an ini-
tial pull-back. Its balance sheet is
stronger than many of its peers and
Barclays should benefit from any
recovery in the Eurozone. The shares
are hovering around the 50 per cent
retracement of the February-
September 2011 sell-off at 237p.
GFT quotes 238.0p-238.3p.
Philip Salter
THE
TIPSTER
ROCKY ROAD
PAVED WITH
CHOCOLATE
HEAVEN
27 CITYA.M. 14 FEBRUARY 2012
ANALYST PICKS
STRATEGIST
JOEL KRUGER
My pick: Buy dollar-Canadian dollar on a daily close above Ca$1.0035
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
Our constructive outlook remains, despite the interday pullback, with the
market largely still consolidating around parity ahead of what we believe
will be an eventual retest of the key October highs by Ca$1.0660. Look
for any interday pullbacks to be very well supported above Ca$0.9900,
while only a close below Ca$0.9900 would give reason for concern. A
close back above Ca$1.0035 should accelerate gains. Stops should be
placed on a close below Ca$0.9900 with a Ca$1.0600 objective.
STRATEGIST
ILYA SPIVAK
My pick: Short gold
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
US economic data continues to outperform expectations by impressive
margins but headwinds from the Eurozone, where a recession is likely
already underway, are still a drag on the recovery. This means both QE3
and inflation expectations are likely to be capped. Prices appear to be
forming a Head and Shoulders top with the peak marked by a Bearish
Engulfing candlestick pattern below resistance at $1,763.00. I will
remain short, initially looking for a test below the $1,700 figure.
STRATEGIST
JOHN KICKLIGHTER
My pick: Short S&P 500, long euro-Swissie, long dollar-yen
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
The prevailing risk appetite run that has guided the markets since
the beginning of the year has been impressive, but also looks to be a
little tired at current levels. There are a number of appealing setups
to accompany the risk positive environment, but I remain sceptical
with these fundamentals. As such, I'll keep a standing order for an
S&P breakdown below 1,300, while also holding exposure in the non-
risk dependent dollar-yen and euro-Swiss franc positions.
REVERSAL
INVERSE HEAD AND SHOULDERS
The inverted head and shoulders formation
is the same as the head and shoulders, just
turned on its head. It can be considered a
buy signal when the price breaks above the
neckline. This formation is typically seen
after a long downtrend. In the case of an
inverted head and shoulders formation, vol-
ume generally plays a larger role than in a
regular head and shoulders, requiring an
increase in volume for a breakout from the
neckline. The inverted left shoulder is
formed by an increase in volume, the invert-
ed head of the chart is accompanied by
lighter volume, and then a big jump in vol-
ume on the rally from the inverted head. An
inverted head and shoulders is confirmed
with the upside penetration of the neckline.
Only last week we spotted an inverted
head and shoulders developing in the Dax
on the five minute chart, says Ian
OSullivan. The target once it broke the
neckline was 6,710 and it duly got there.
Buying as it broke about the neckline
around 6,685 would have yielded a 25pt
profit in less than an hour.
REVERSAL
TRIANGLE
Triangle patterns consist of two trend lines
converging into a triangle, and the price mov-
ing between these lines. Triangle chart forma-
tions tend to be a sign that traders need to sit
on their hands and wait to see where the
breakout will head.
There are three kinds of triangle formations.
Symmetrical triangles are seen as a suggestion
that the trend is in a period of consolidation
before continuing with the trend. The price will
usually rebound between the descending resist-
ance line and the ascending support line before
breaking out in the direction of the original
trend.
An ascending triangle suggests that the price
will head higher upon completion. The key
aspect is the ascending support line indicat-
ing selling in the market, after which buyers
will move in and raise the price above the
breakout level and into an upward trend. By
contrast, a descending triangle suggests that
the price will turn to a bearish move on com-
pletion of the pattern, however traders should
be wary of the price breaking the lower sup-
port line of the triangle pattern.
ANALYSIS l Inverse head & shoulders
Neckline
Head
Right shoulder Left shoulder
ANALYSIS l Triangle
Wealth Management | Trading
28 CITYA.M. 14 FEBRUARY 2012
S&P
CREDIT
RATING
Germany
France
Switzerland
Netherlands
Finland
United
Kingdom
Austria
Belgium
Italy
Ireland
Hungary Portugal
LEGEND
10-Year Yield
Total GDP
Total Debt
Cyprus
Slovenia
Estonia
Malta
Slovakia
Poland Spain
Czech
Republic
AAA
AA+
AA
A
BBB
BBB-
BB+
BB
B
CC
CCC
SPECULATIVE GRADE
INVESTMENT
GRADE
Greece
Greeces latest austerity promise
isnt worth the paper its printed on
Contagion fears are drawing out the painful inevitability of a Greek default, writes Philip Salter
L
ONG-TERM investors could be
forgiven for putting their hands
over their ears at the mere men-
tion of the Eurozone at the
very least it will better assure their
continued sanity. But traders are cut
from a different cloth and see oppor-
tunities in volatility. Despite the relief
following the latest agreement for the
Greek government to introduce fur-
ther reforms which Eurozone
finance ministers will consider on
Wednesday in truth, the agreement
isnt worth the paper its printed on.
Pessimistic realism will return in no
time. There will be no Irish resolution
for Greece the people are thirsting
for their ancient birthright: direct
democracy.
Spread Cos Ian OSullivan says
although the initial reaction in the
markets seems to be one of relief that
the deal was agreed, that euphoria
may well wear out in a matter of days,
especially if the protests and riots con-
tinue. Michael Hewson of CMC
Markets is adamant that decisions are
being driven nearly exclusively by
domestic political necessity. He thinks
Greek politicians want to be in a posi-
tion to ultimately blame the
Eurogroup, while the Eurogroup are
looking for Greece to take the flak.
The entire Greek drama has been
based on the never-never, says Chris
Beauchamp of IG Index, each time it
looks as if the Eurozone will let the
Greeks go over the edge, another
prime minister manages to pass
another austerity bill and they get yet
another wodge of cash. He thinks
the country is probably in a death
spiral, as austerity is compounded by
depression, and any agreement
signed is at the mercy of the politi-
cians who, in their desire to get into
power, will abrogate any treaty if it
helps them get elected. Beauchamp
says they can then argue that this rep-
resents the will of the Greek people,
and go back to the negotiating table.
As Hewson says: Ultimately, the
Germans wont keep writing blank
cheques.
As is shown below, Greece is on a
slippery slope. Although Joshua
Raymond of City Index expects
Europe to ratify the deal tomorrow, he
says each tranche of bailout funds
will have a huge question mark over
it, as the fiscal oversight of Greece is
likely to be the strictest its ever been.
He also thinks Aprils election poses a
threat to Europes ability to trust the
sincerity of Athens to implement
these austerity measures.
BANKING ON IT
The 1m question is: what is the
threat of contagion? Its stopping the
strong nations from filtering out the
weaker and forming their own superi-
or currency bloc and its the bargain-
ing chip for weaker nations in their
quest to squeeze the German taxpayer
until the pips squeak.
Big banks are the big worry,
although Beauchamp says Europe
has used its time to inoculate itself
against Greece. OSullivan says
although European banks remain
vulnerable to a Greek default with bil-
lions of euros of Greek debt on their
books, the recovery in European
banks so far in 2012 suggests that the
debts are manageable and contained.
Hewson, a critic of the long term refi-
nancing operation (LTRO) calling it
quantitative easing through the back
door wonders if equities are broadly
overvalued. This liquidity boost could
help explain the decent performance
of banking stocks. Beauchamp thinks
the danger is that European banks
will not be able to cope if markets
move on to Portugal as the next domi-
no. GFTs David Morrison thinks con-
tagion is probable, even with an
extended LTRO, with concerns over
the stability of the global banking sys-
tem will return. Ultimately, Morrison
thinks precious metals should do
well, but notes they could suffer in
the short term as leveraged investors
rush to close out long positions to
raise cash.
ANALYSIS l Sovereign debt is dragging the Eurozone underwater
Each solid circle represents a
European nations GDP. The
corresponding dotted circle
shows the size of the nations
debt relative to GDP.
Source: OANDA
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Valentine SOS:
Foxyfitness
for the 14th
T
oo late to pump it up to impress your
Valentine date? No way this lunchtime
you can get buff, glowing and well in the
mood for your dinner date.
Plump for the fitness facelift. Anything that
gets you sweaty and out of breath is good
news for your skin. By making it to that
lunchtime spin class, youll literally be able to
infuse skin cells with oxygen and other nutri-
ents both are essential for skin collagen
production (collagen helps to keep the skin
plump and smooth).
lFeel the burn. Raised levels of testosterone
post-weight training have been shown to
cause a surge in libido studies have shown
that regular exercisers report a higher sex
drive. Good news for tonights lucky lady.
lPump those pecs. Increased blood flow to the
skins surface can improve the appearance of
any body part a newly worked muscle will
(temporarily) look more pronounced, so for pert
pecs tonight, hit the bench press at lunch.
lLose the lumps. More wobbling, less whittling
been done? Forget lasers, rollers and any other
cellulite cure. Caffeine in any form will
improve blood flow and temporarily improve
the appearance of cellulite when applied to the
skin and the science is there: several studies
have shown that when caffeine is applied in this
way, moisture is pulled away from cells and skin
is indeed firmed. If youre feeling flush you can
splash out on a cream but if youre watching
the pennies you can nick the celeb secret of
applying a homemade coffee granule paste to
get equally good results.
lTone and tighten your nether regions. Guys
and gals, tonight and beyond, dont neglect
those pelvic floor muscles. For everything
from better enjoying the physical side of your
Valentines night to preventing (and even
treating) erectile dysfunction, the pelvic floor
is where its at. Lets keep it simple for a
Tuesday: for both sexes, the easiest way to
locate these muscles is to imagine doing a
number one, then stopping before youre fin-
ished, drawing the muscles in for a count of
five. Release, relax and repeat for up to 10
repetitions. Every day.
@laurafitness; www.laurawilliamsonline.com
Perfume has come a long way in the last decade. Now is a great time to look at
customised scents and they arent just for women, says Steve Dinneen
Bespoke perfumery
usually takes around
six months and costs
between 5,000 and
20,000
Picture: GETTY
The rise of bespoke perfumery
EPISODE 46 A RATHER BAD NEWS DAY
CITY DAD
arrive in the office a few minutes late. The
last couple of nights Ive been struggling
to sleep for much of the night, only to slip
into deep sleep just as its time to rise and
shine. Well, thats how it seems to me. Emma
says Im still snoring throughout the night.
Gina has coffee and the newspapers already
sorted. I pick up City A.M. and am horrified to
read that Caroline Davison has snaffled the
CWM deal from right under my nose. Signed,
sealed and delivered. And at a price lower than
I would have imagined possible. Damn.
The telephone on my desk rings. Good
morning David, its Angela Valentine, the chair-
mans executive assistant. Sir Roderick won-
ders whether you might pop up for a moment.
At your convenience, of course. I note that
theres been subtle but quite forceful insistence
on the Sir of late. Underlining, presumably,
that the old fella thinks hes worth it. Ill be
right up, I find myself replying, without fore-
thought.
I put the phone down and look once more at
the City A.M. coverage of the CWM deal. Sir
Rodericks buffoon of a son-in-law is certain-
ly looking rather sharper and probably a
great deal richer this morning, thanks to
Carolines takeover coup on Osgoods behalf.
Its also the week of bonus announcements.
Which of these two might Sir Roderick wish to
discuss? Hmm.
I leave my office and walk towards the lift,
wondering about the ebb and flow of conver-
sation when Sir Roderick next invites his
beloved daughter and the buffoon for
Sunday lunch. As I approach the lift I receive a
text message: Seen the papers? Hehe. Have
booked our erstwhile favourite lunch spot. You
remember, no? Next Monday, 1pm. See you
there. Caroline x Suddenly, I wish Id had
breakfast. City Dad will continue next Tuesday.
For past episodes, go to www.cityam.com.
bespoke perfumes. A wealth of boutique
perfumers came to the market, offering
highly tailored services to well heeled cus-
tomers wanting to stand out from the
crowd. The traditionally female-dominated
industry also expanded to accommodate
more men, with most perfumers offering a
wide range of male scents.
This was supplemented by leaps in the
scientific understanding of smell includ-
ing the emergence of a new theory of how
our nose interprets different scents. It had
been assumed that molecules were read
in the same way our that body interacts
with proteins by shape. A new school of
thought argued that we in fact respond to
the distinct vibrations of molecules.
This allowed scientists to recreate rare
(or, in the case of the pleasant-smelling but
carcinogenic coumarin, dangerous) com-
pounds that had been unusable.
There are plenty of opportunities for dis-
cerning Londoners to take advantage of
bespoke perfumery. Ormonde Jayne offers
a service involving at least three meet-
ings in which your tastes (do you like cof-
fee? The idea of the mountains or the
ocean? Spicy food?) are marked down and
perfumes concocted accordingly.
The six month process will eventually
guarantee you find the ideal scent. Prices
start at around 5,000 but, depending on
the ingredients used and the degree of cus-
tomisation of the bottle, they can exceed
20,000.
F
or centuries fragrances have
beguiled us. Ancient civilisations
experimented with perfumes and by
the 11th century, European scent-
masters were plying their olfactory trade.
It became a mainstream craft in Victorian
times, when leaps in scientific knowl-
edge and equipment made it possible
to create previously unattainable com-
pounds.
Throughout most of its existence, per-
fume was the preserve of the wealthy.
Sourcing rare ingredients is expensive
(one popular material is ambergris, a fatty
compound secreted by the sperm whale:
not exactly something you just stumble
across) and refining them into something
usable was and remains a long and
arduous process.
Post-war consumerism, though,
changed the face of the industry clever
marketing secured its status as a luxury
brand but perfumes became available to
the masses. They earned a reputation as
must-have luxury products and people
who would balk at the price of a Jean Paul
Gaultier dress happily spend money on his
branded perfume.
Things ticked along quite happily for a
few decades, with most designers launch-
ing lucrative scent lines. The 2000s, though,
saw another major shift. As scents became
ubiquitous (as opposed to ways for the rich
to mask their smell in lieu of regular
bathing), demand grew for unusual or
Lifestyle | Health
29 CITYA.M. 14 FEBRUARY 2012
DON DRAPER
Rich opulent woody scents hint towards
sophisticated, cultivated intellectuals. Throw
in a touch of black hemlock or oud (a
resinous heartwood formed in quilaria and
gyrinop trees after they are infected by
mould) for a seductive, masculine scent. Try
Ormonde Jaynes Ormonde Man
GEORGE CLOONEY
Pink pepper, drydown of cedar, mandarin
and moss gives an elegant fragrance with a
fruity twist. This is a complex scent that
works across age ranges. Its a sign of a
classy man who may still be a bit of a player.
Try Ormonde Jaynes Isfarkand
THIERRY HENRY
Vetiver, a type of grass, is the scent of choice
for sporty, hot-blooded types a fragrance
that says masculine and dominant. Try
Ormonde Jaynes Zizan
WHAT YOUR SMELL SAYS
What price, though, on discovering the
key to your perfect scent?
See ormondejayne.com or call 020 7499 1100
for more information.
Lifestyle | Restaurant Review
30 CITYA.M. 14 FEBRUARY 2012
Baku
164-165 Sloane Street, SW1X 9QB
FOOD hhiii
SERVICE hhhhi
ATMOSPHERE hhiii
Cost per person without wine: 50
H
AUTE-AZERI food thats cuisine
from Azerbaijan sounds terribly
interesting, doesnt it? Certainly, I
hastened to take myself to Baku on
Sloane Street (of all places), lured by the
promise of Asiatic exoticism,
Knightsbridge-style. A quick look at the
menu revealed a beguiling mixture of
hearty meats, spices and fruit reminis-
cent of Turkish cooking, combined with
Eastern European accents (think caviar
and chestnuts and sturgeon).
With a prime, spacious location only a
moment or two from the Mandarin
Oriental and Harrods, Baku looks like a
big deal it needs to be a big deal, really,
unfurl in a series of brilliant screen
images.
But downstairs, a strangely cold space
(bare but without a sense of deliberate
minimalism), we pushed aside the iPad
in favour of good old fashioned paper. It
didnt seem particularly helpful to see
the food all photo-pretty before eating
it if this isnt a case of the proof resid-
ing in the pudding, I dont know what is.
Food is divided into soups, seasonal
fresh greens and salads, main courses
from the oven, kebabs from the grill, veg-
etarian and to share from the tandir.
Yet these labels arent particularly help-
ful: the tandir sturgeon we had was small
and the flavour wed expected (perhaps
wrongly based on experiences eating
Indian food) was not apparent; the stur-
geon from the grill, served with pome-
granate molasses, was also small.
Sturgeon, in case you hadnt realised,
makes frequent appearances on this
menu (you could have a sturgeon trio
from the oven, cooked three ways), but
beef is probably the better way to go. The
beef turshu govurma was an amazingly
tender, fatty bowl of rib-eye slow-cooked
and servied with onion, plum and chest-
nut, though the amusing Romanian
waiter was reluctant to serve such a
calorific dish to two ladies. Perhaps
Bakus elite used to keeping themselves
in tight Gucci would have declined.
While the main courses are overpriced
given their size and quality, there are
gems to be found. The same can not be
said of the salads and appetisers
choban salad was a microscopic bowl
of tomato, cucumber and herbs that any-
one could knock together at home, yet it
cost 8.50. Blinis (stuffed with lamb or
cheese) were dry and miniscule at
7.50, not worth it. That said, our dessert
of exotic fruit was incredible: a massive
plate of exotic fruit that arrived on
steaming ice.
Cocktails a few doors up the road
would cost twice as much. So I recom-
mend dropping by Baku for drinks
familiarise yourself with the iPads pic-
toral list of vivid preparations and, if
youre starving, pop downstairs for a
bowl of meat stew. For an authentic taste
of Baku, though, I fear you may need to
go elsewhere.
Azerbaijani cuisine appears in SW1
High hopes of rich,
avoursome food
were only partially
sustained at this odd
Sloane St restaurant
The dining room at
Baku.
WORDS BY
ZOE STRIMPEL
otherwise heaven knows how the rent
can be justified. Yet when we turned up,
the bar a big, Oriental-style space was
virtually empty and the restaurant, to
which we descended after a really good
set of cocktails, lacked buzz. To be fair, it
was a Wednesday in January; a few weeks
later, a friend drunkely texted me from
the bar on a Saturday night where she
was necking champagne.
The iPad menus seem closer to the
restaurants heart than the soulful
Azerbaijani food I had imagined even
the cocktails, named things like Caspian
Sea Flip and Baku Bay Fizz (and very rea-
sonably priced, in fact, at around 8.50),
If you have left your plans until the very last minute, dont
panic. Here are some quick fixes to help save the day, with tips
for staying in and restaurants that arent fully booked... yet.
Lifestyle
31 CITYA.M. 14 FEBRUARY 2012
Still not ready for
Valentines tonight?
Dont be shy of hearts, but make them
original. Conveniently, Waitrose is
stocking a heart-shaped brie and
Poilane (www.poilane.fr), the posh
French baker, are doing heart-
shaped butter biscuits. If you want
to get very groovy about it, Gelupo,
the super-cool ice cream arm of Boca
di Lupo in Soho has designed a box of
gelato kisses a box of gelato bon
bons in flavours like ricotta sour cherry
in dark chocolate and strawberry sorbet
in white chocolate (18, www.gelupo.com).
ROMANTIC NIBBLES | FROM 3.99
Rotunda is offering Valentines treats including
pumpkin, honey and rosemary mousse; ceviche
of salmon; Northumbrian lamb and steamed
chocolate pudding. At less than 50, including
a glass of bubbly (albeit not from a certain
region of France), Rotunda offers value that is
hard to beat especially if you have left it this
late to book a table.
90 York Way, N1 Tel: 020 7014 2810
ROTUNDA | 48.50 FOR FOUR COURSES,
INC A GLASS OF PROSECCO
Cassis has designed a special sharing
menu for Valentines couples. Guests can
dine on bouillabaisse fish soup with whole
fish fillets and shellfish or limousin veal fil-
let with puntalette pasta gratin. For that
certain je ne sais quoi, there will be love
songs played by Cassis resident pianist.
The restaurant also features artworks
from the likes of Matisse, Gary Hume and
Eve Arnold. 232-236 Brompton Road,
SW3 2BB | Tel: 020 7581 1101
CASSIS BISTRO | 65 PER PERSON
INC A GLASS OF CHAMPAGNE
Treat your someone special to a sharing
menu at intimate French restaurant
Morgan M. Expect dishes like fillet of Ikon
Valley venison, pot-roasted with chestnut
pure, liver ravioli and game jus sure to
add fuel to any burning fire of desire. A
sommelier is on-hand throughout, ensuring
the wine you choose is the perfect match.
Just like your dining companion, with any
luck.
50 Long Lane, EC1A | Tel: 020 7609 3560
MORGAN M | SPECIAL TASTING
MENU 75 PER PERSON
Get amazing takeaway. The key for this one is to
make sure its ready when she gets home you
want the table set, the candles lit, the wine out.
Chinese isnt allowed: instead, opt for the very
best of Londons restaurants, to-go. Our top pick
is the fabulous Modern Pantry in Farringdon
(020 7250 0833/ themodernpantry.co.uk). For
sushi as good as any at Nobu, stop by the Japan
Centre (14-16 Regent Street) and stock up on
all manner of delights which once arranged on
some nice plates, with chopsticks, youll be good
to go. Barbecoa, the Jamie Oliver restaurant,
has a phenomenal butchers, with a huge range
of meat you can knock up quickly including
luxury sausages. (It also has a take-out service,
but only for lunch in extremis you could load
up on the sensational pulled pork boxes and
stick them in the oven at home).
ENJOY THE PERFECT RESTAURANT MEAL AT HOME |
FROM 35
If youre really stuck, get a
hamper. This is in no way
the poor mans option,
either: Fortnums are prob-
ably the safest bet if youre
guilty of forgetting
Valentines Day. The specif-
ic V-Day selections need
preordering, so opt for any
other on the first floor. We
like the boozy ones you
can then buy some
baguette and cheese to
make for a classy picnic in
bed. Mount Street Delis
Valentine hamper handy
if you work in Mayfair is
great, but requires a
breakfast in bed theme.
At 3am or whenever the
night of passion leaves you
feeling peckish, a half a
bottle of Champagne, a
bottle of peach nectar (for
bellinis) Scott's granola,
organic fruit compotes and
ginger & lemon biscuits
should be just the ticket.
45.00, to order call 020
7499 6843
VALENTINES HAMPER | 45
Highly regarded chef Alyn Williams will be
preparing a special seven course tasting
menu including foie gras salad, poached
lobster, poached brill and beef sirloin. The
newly re-opened Mayfair eatery is a
sophisticated retreat in the heart of the
west end the perfect spot to impress a
Valentines date.
Westbury Hotel, Bond Street House, 14
Clifford Street, London W1S 2YF
Tel: 020 7078 9579
ALYN WILLIAMS AT THE WESTBURY |
SEVEN COURSES 90
Michelin starred Lecture Room and Library
at Sketch has a Valentine's day menu cre-
ated by master chef Pierre Gagnaire. Dine
on a four finely crafted courses including
scallop carpaccio or pan fried deer, all
washed down with a glass of Bollinger
rose. To add to the romantic mood their
will be music by Louise Golbey throughout
the night.
9 Conduit Street, London W1S 2XG
Tel: 020 7659 4500
LECTURE ROOM AND LIBRARY |
FOUR COURSES 195 INC CHAMPAGNE
JO MALONE CANDLES | FROM 38
Romance up the house and fast. Jo
Malone, with outposts in the City
and Canary Wharf, is the ultimate
stop-off for all things woman-pleas-
ing and scent related. There is a nice
range or rose-fragrance candles, but
Pomegranate Noir is the one to go
for if you want the house to smell
sensual. Make sure you get some
bath salts to go with and, you dont
need me to tell you a nice bottle of
bubbly, too.
Staying In Going Out
&
T
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R
R
E
S
T
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PRISONERS WIVES
BBC1, 9PM
Harriet is distraught to discover son
Gavin has been attacked in prison
and the only way to protect him is to
supply the bully with drugs.
HOWTO GROWA PLANET
BBC2, 9PM
Iain Stewart reveals how flowers have
transformed Earth, journeying to
remote islands in the South Pacific to
learn about the earliest species.
THE EXIT LIST
ITV1, 8PM
Game show hosted by Matt Allwright,
in which players can win a cash prize
by correctly answering questions as
they navigate a 26-room maze.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.30pm
Revista De La Liga 11.30pm
Footballs Greatest Managers
12amUEFA Champions League
Highlights 1amFootball Asia
1.30amRevista De La Liga
2.30amFootballs Greatest
Managers 3amUEFA Champions
League Highlights 4amFootball
Asia 4.30amFootballs Greatest
Managers 5am-6amUEFA
Champions League Highlights
SKY SPORTS 2
7pmLive UEFA Champions
League 10.15pmClarence
Seedorf Renaissance Man
10.45pmPoker 12.45am
International One-Day Cricket
2.45am-4.45amPoker
SKY SPORTS 3
6pmBritish Basketball 8pm
International One-Day Cricket
10pmSports Unlimited
11pmTen Pin Bowling 12amFIBA
Basketball 12.30amBritish
Basketball 2.30am-3amFIBA
Basketball
BRITISH EUROSPORT
7pmLive Snooker: The Welsh
Open 10pmBoxing 11pmAfrica
Cup of Nations 12am-12.30am
Alpine Skiing
ESPN
5.30pmLive UEFA Europa League
Football 7.30pmNBA Basketball
9.30pmFIS Alpine Ski World Cup
Report 10pmESPN Kicks: Serie A
10.15pmEredivisie Review Show
11.15pmESPN Kicks: Premier
League 11.30pmESPN Press Pass
12amSerie A Review12.30am
NHRA Drag Racing 4amPlanet
Speed 4.30am-6amPremiership
Rugby Union
SKY LIVING
7pmCriminal Minds 8pmThe
Biggest Loser 9pmUnforgettable
10pmCriminal Minds 11pmBones
12amCSI 1.50amMaury 2.40am
My Wife and Kids 3.30amBones
4.20amNothing to Declare
5.10amThe Jerry Springer Show
5.35am-6amJerry Springer
BBC THREE
7pmDont Tell the Bride to Be:
The Proposals 8pmDont Tell the
Bride: Valentines 9pmJunior
Doctors: Your Life in Their Hands
10pmEastEnders 10.30pmLittle
Britain 11pmFamily Guy 11.45pm
American Dad! 12.30amJunior
Doctors: Your Life in Their Hands
1.30amLittle Britain 2amBizarre
Crime 2.30amDont Tell the Bride
to Be: The Proposals 3.35amDont
Tell the Bride: Valentines
4.25am-5.25amYoung Gardener
of the Year
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmDavid Blaine:
What Is Magic? 9pm90210
10pmCleveland Show10.30pm
Bobs Burgers 11pmSirens 12am
The Big Bang Theory 1amScrubs
1.55amHow I Met Your Mother
2.20amRules of Engagement
2.40amGreek 3.20amUgly Betty
4.05am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmAmerican Pickers
10pmSeeking Salvage 11pmUFO
Hunters 12amPawn Stars
12.30amStorage Wars 1am
Seeking Salvage 2amUFO
Hunters 3amOnly in America
4amThe True Story 5am-6am
Cash Cowboys
DISCOVERY
7pmBear Grylls: Born Survivor
8pmX-Machines 9pmSwords:
Life on the Line 10pmReal Prison
Breaks 11pmDeadliest Catch
12amBear Grylls: Born Survivor
1amSwords: Life on the Line
2amReal Prison Breaks
3amWheeler Dealers 3.50am
Mythbusters 4.40amIndustrial
Revelations 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pmMystery
Diagnosis 10pmBaby ER 11pmI
Didnt Know I Was Pregnant
12amMystery Diagnosis 1am
Baby ER 2amI Didnt Know I Was
Pregnant 3amSupernanny US
4amA Baby Story 5am-6am
Baby Tales
SKY1
7.30pmGot to Dance: Semi-Finals
9pmAshley Banjos Secret Street
Crew10pmFILMThe Core 2003.
12.35am35mm1.05amDog the
Bounty Hunter 1.35amFringe
2.30amDom Jolys Happy Hour
3.20amRoad Wars 4.45amLion
Man 5.10am-6amDont Forget
the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmCHOICE Prisoners Wives
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmDeath Unexplained
11.20pmNeighbourhood Watched
12.05amFILMTitanic Town 1998.
1.40amWeatherview1.45amSign
Zone: The Hunt for the Higgs: A
Horizon Special 2.45amSign Zone:
Inside Men 3.45amSign Zone:
Natures Miracle Babies
4.45am-6amBBC News
6pmEggheads
6.30pmBritains Heritage
Heroes
7pmRaymond Blanc: The Very
Hungry Frenchman: The chef
explores the Burgundy region.
8pmAlex Polizzi: The Fixer
9pmCHOICE How to Grow a
Planet
10pmHave I Got Old News for
You
10.30pmNewsnight: Weather
11.20pmRubicon
12.05amRubicon
12.50amBBC News
3.05amClose 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmRiver Monsters
8pmCHOICE The Exit List
9pmThe Biggest Loser: Nicky
Hambleton-Jones and Nicky
Clarke give the contestants
makeovers.
10pmITV News at Ten
10.30pmLondon News
10.35pmBenidorm
11.35pmThe Cube
12.30amThe Zone; ITV News
Headlines
3.05amCrossing Jordan
3.50am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmGoks Teens: The Naked
Truth
9pmBig Fat Gypsy Weddings
10pmShameless
11.05pmDesperate
Housewives
12.05amRandom Acts 12.10am
Poker 1.10amSailing: Americas
Cup Uncovered 1.35amKOTV
Boxing Weekly 2amVolleyball
2.55amLate Night Poker 3.55am
Best of British 4.50amThat
Paralympic Show5.15am-6.10am
Full Metal Challenge
6pmHome and Away
6.30pm5 News at 6.30
7pmPolice Interceptors: 5
News Update
8pmSaving Private Ryan: The
True Story: 5 News at 9
9pmBody of Proof
9.55pmCSI: NY
10.55pmCSI: Miami
11.50pmCSI: Crime Scene
Investigation
12.45amForensic Files
1.10amSuperCasino 4amHouse
Doctor 4.25amWildlife SOS
5.10amMichaelas Wild Challenge
5.35am-6amMichaelas Wild
Challenge
1 2 3 4 5 6
7 8
9 10 11 12 13 14
15 16 17 18 19
20 21 22
23 24
24 6
45
9 13 12
11 4 7
42
29 11
39
5 3 5
7 9 12
45
22 23
21
15
13
39
9
17
14
15
27
8
10
26
20
19
12
6
7
17
22
12
35
19
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.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Unemotional
person (5)
4 Acute abdominal
pain (5)
7 Chemical
compound (7)
8 Chinese communist
leader (1893-
1976) (3)
9 Popular game
played with
pieces of stifened
paper (5)
12 Blasphemed (5)
15 Suspicious, not
as expected (5)
18 Ticks over (5)
20 ___ Tolstoy,
Russian writer (3)
21 With legs stretched
far apart (7)
23 Beauty parlour (5)
24 Imperial (5)
DOWN
1 Of sound (5)
2 Known (3)
3 Gambling game
using two dice (5)
4 Professional cooks (5)
5 State of being disregarded
or forgotten (5)
6 Ugly evil-looking
old woman (5)
10 Muhammad ___,
former boxer (3)
11 First note in the tonic
sol-fa scale (3)
13 Small mass of soft
material (3)
14 The Catcher in the ___,
J D Salinger novel (3)
15 Drops down (5)
16 Destroy or ruin (5)
17 Ache, long (5)
18 Lay to rest (5)
19 Carapace (5)
22 Clinging plant (3)
T
E
O
I
D P
N
R
V

4

F R A N Z N A D I R
O N E O E
R E N T A L R O M E
E U L E F T F
S I L D T O A S T
T A A T E T D
C R A N E D O N E
I D A R T R F
R I N D S A L A M I
I L N G N
S L E E P G E E S E
2 8 6 2 2 3
7 6 9 8 4 8 4 9
3 4 6 9 5 7 1 2 8
4 7 3 9 1 3
5 9 1 3 2
1 5 2 3 8 9 6 7
1 9 2 3 6
7 8 8 4 2 3
4 7 2 6 3 8 9 1 5
3 5 1 6 9 7 5 8
9 7 1 5 4 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
NOURISHED
Lifestyle | TV&Games
CITYA.M. 14 FEBRUARY 2012 32
IRELAND may have to wait until June
to complete their Six Nations cam-
paign if the tournaments organising
committee bows to the demands of
Frances leading clubs.
Saturdays match between Les Bleus
and Ireland was postponed shortly
before kick-off after referee David
Pearson deemed sections of frozen
turf at the Stade de France to be a dan-
ger to the safety of the players.
Six Nations officials met yesterday
to try to arrange a new date for the
fixture and ruled out the possibility of
it taking place this Saturday or
Sunday, leaving the weekend of
March 3-4, originally scheduled as a
rest week, the most likely alternative.
Playing the match on either of
those dates would, however, see both
sides forced to play on four successive
weekends. Such an eventuality would
further irritate the French Rugby
League, which has written to Six
Nations chiefs pointing out that 10
out of the 17 Top 14 weekends this sea-
son have already clashed with interna-
tional fixtures.
The FRL has suggested the game be
pushed back until their domestic sea-
son finishes on 9 June, but with
Ireland scheduled to be touring New
Zealand in the summer that idea
would appear to be a non-starter.
Toulouse manager Guy Noves
admitted the prospect of losing up to
eight key men for an extra Top 14
match was far from ideal but con-
firmed he would not prevent his play-
ers from joining up with the national
side.
For me from a sporting point of
view after having already played half
of the championship without players
the interests of rugby are the obvious
priority, he said.
I wont go against it (the FRL deci-
sion), thats not my role. Trying to
make up what happened now is going
to be complicated.
The Six Nations organising commit-
tee will meet again today in an
attempt to reach a compromise.
France want
Ireland match
played in June
BY JAMES GOLDMAN
RUGBY UNION

Sport
33 CITYA.M. 14 FEBRUARY 2012
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email sport@cityam.com
HOMECOMING | Palmer seals Wasps return
ENGLAND lock Tom Palmer will return to Wasps at the end of the season after he agreed
a two-year deal yesterday. Palmer, 32, has spent the last three years in France with Stade
Francais but will rejoin the Premiership strugglers at the same time as another of
Englands 2011 World Cup squad, James Haskell, who is currently playing for Japans
Ricoh Black Rams but signed a three-year deal with Wasps in the summer. Picture: GETTY
Sport
34
A
S SOMEONE who pioneered the
use of the broomhandle putter
over 20 years ago I realise Im
leaving myself open to accusa-
tions of hypocrisy, but I welcomed the
news last week that the R&A, as well
as the US Golf Association, are plan-
ning to take a closer look at the
increasing use of the controversial
belly putter among top professionals.
Without getting overly technical, in
order to hit the perfect putt you want
the head of the club to finish where it
started. If youve got the top part of
the club wedged into your belly, as
long as you can keep your hands
steady, the putter head is automatical-
ly going come down in the same line
it went up in.
That might sound similar to what I
was attempting to do, but the reality
was and is very different. I put the
handle on my chin but that was to
make sure the club hung up and
down in a straight line and it was eas-
ier to get my eyes over the ball.
The technique I employed was very
different to what the likes of USPGA
winner Keegan Bradley (right) are up
to and I think its got to the stage
whereby the authorities need to
restrict players from anchoring the
top of the club to your body.
LEFTY BACK IN THE SWING
On the course it was
an interesting week-
end for four of the
worlds top players
with Phil Mickelsons victory
at the AT&T Pebble Beach
National Pro-Am particularly
impressive.
Lefty was at a bit of a loss a fort-
night ago to explain his poor
early season form but a slight
swing change has reversed
his fortunes. Mickelson has
shortened his swing by
keeping his left leg
much firmer on the
backswing which
creates a nice
little coil, and when you get that right
it works really well. It may have taken
him a bit of time to break it in but its
certainly working now.
Tiger Woods, despite a sloppy final
round, had an encouraging week,
while on the European Tour as
delighted as I was for Rafael
Cabrera-Bello, who won the
Dubai Desert Classic, both
Lee Westwood and Rory
McIlroy would have been
disappointed not to have
claimed that title, especial-
ly the Northern Irishman
after his splendid first two
rounds.
Sam Torrance OBE won 21
European Tour titles and is a for-
mer Ryder Cup captain.
Follow Sam on twitter
@torrancesam
Belly putter is different to the broomhandle
and authorities should consider outlawing it
GOLF COMMENT
SAM TORRANCE
SPORT | IN BRIEF
Dorran-Jones gets England call
RUGBY UNION: Northampton prop Paul
Doran-Jones has joined the England Six
Nations squad as a temporary replace-
ment for Baths David Wilson, who has a
jaw injury. England play Wales at
Twickenham a week on Saturday in a
clash of two unbeaten sides.
Cappello awaits Russian call
FOOTBALL: Mega-wealthy Russian club
Anzhi Makhachkala have accepted the
resignation of head coach Yuri
Krasnozhan paving the way for a pos-
sible approach for former England man-
ager Fabio Capello. The 65-year-old
Italian has also been strongly linked
with Inter Milan, but hinted last week
that his next managerial role was likely
to be based outside his homeland.
Essex swoop for Petersen
CRICKET: Essex have sealed the services
of South Africa batsman Alviro
Petersen for the first half of the new
county season. The 31-year-old skip-
pered Glamorgan last summer and will
remain at Chelmsford until mid-June.
The Toss: Cook calls correctly and
chooses to bat. No return for Tim
Bresnan who is deemed short of
match fitness.
12.5 Overs: A promising start is
undone by Afridi who accounts for
KP and Trott in consecutive balls
35.1 Overs: Cook goes to his third
ODI hundred with a boundary off
Ajmal
36.6 Overs: Bopara brings up his
seventh ODI fifty and at 188-2
England look set for a big total
50 Overs: Despite a late flurry
from Swann and Patel England fin-
ish on 260-7 after Ajmal weaves
his magic to end with 5-43
2.2 Overs: Pakistans response
gets off to an awful start as Finn
traps both Shafeeq and Hafiz leg-
before in the space of two balls.
6.5 Overs: Younis does well to
even get an inside edge to a Finn
snorter and Kieswetter takes a fine
catch. Pakistan in trouble at 27-3
8.5 Overs: The same Finn-
Kieswetter combo does the trick
again as Farhat is caught behind
14.4 Overs: Misbahs gone and so
too, in all probability, has the
match. Patel slides one past the
Pakistan captains defences and the
hosts are reduced to 53-5
36.6 Overs: Broad takes the final
wicket of Ajmal as England wrap
up a conclusive 130-run victory
FIRST ODI
ENG 260-7 | PAK 130 ALL OUT
Captain excels with best ever one-day score while
Finn does the damage with the ball as Pakistan are
crushed by 130 runs in one-sided series opener
Cook sets tone
as England win
at long last
ENGLAND one-day captain Alastair
Cook admitted to feeling a combina-
tion of jubilation and relief after his
century helped set the tone for his
sides first significant victory of their
troubled tour of Pakistan.
The Essex left-hander compiled a
career-best score of 137 in Englands
total of 260-7, which proved more
than enough to take a 1-0 lead in the
four-match series after Steven Finn
returned figures of 4-34 to help bowl
the hosts out for just 130.
Victory represented a much-need-
ed shot in the arm for English
morale in light of the 5-0 drubbing
Cooks side took in India last October
which proved a precursor to the
more recent travails of the Test team
who were similarly whitewashed by
Pakistan earlier this month.
Its always good to start off the
series well, and to play close to our
potential which I dont think weve
done on this tour is really pleas-
ing, said Cook.
I thought one to 11 today were
outstanding. Ive always said, as cap-
tain, youre judged by results - and
we didnt play very well (in India),
and I take responsibility. But today
was a really good day for the side. We
did need the win on tour, and it was
great to be able to contribute to it.
Cooks effort underpinned an
England innings that lurched vio-
lently from varying degrees of
despair to positions of near total
dominance before they were forced
to settle for a par total.
The experiment to open with
Kevin Pietersen failed to reap instant
dividends the South African-born
star hung around for 36 balls but
managed only 14 runs before he was
bowled by Shahid Afridi while
there were also failures for Jonathan
Trott, Craig Kieswetter and Eoin
Morgan.
Spin, meanwhile, which caused so
much havoc in the Test series,
accounted for all seven English wick-
ets to fall with Saeed Ajmal helping
himself to another five-fer.
Encouragement was, however, to
be found in the composure of Ravi
Bopara, reduced to the role of specta-
tor for most of the tour, who made a
pleasing 50 from 69 balls, while the
performance of Englands attack,
and particularly Finn, ensured a
belated first international victory of
2012 for England.
BY JAMES GOLDMAN
CRICKET

35
FRENCH CLUBS WANT IRELAND
GAME PUSHED BACK TO JUNE
SIX NATIONS CHIEFS YET TO CONFIRM
NEW DATE FOR REARRANGED MATCH: P33
LIVERPOOL sponsor Standard
Chartered has confirmed it raised
concerns with Reds chiefs over
striker Luis Suarezs latest
flashpoint with his
Manchester United
nemesis Patrice Evra.
The Anfield club
issued a flurry of apolo-
gies on Sunday after
severe criticism of
Suarezs refusal to shake
hands with Evra before
Saturdays Premier League
match, which United won 2-1.
It is thought to have followed inter-
vention from their American owners,
Fenway Sports Group, and yesterday
it emerged Standard Chartered,
which pays 20m a year to sponsor
Liverpools shirts, was also perturbed.
The bank said in a statement: We
were very disappointed by Saturdays
incident and have discussed our con-
cerns with the club.
Suarez (inset), who was
banned for eight games in
December for using a
reference to Evras skin
colour in an on-field
row earlier this season,
apologised for his snub,
having told bosses he
intended to shake
hands.
Liverpool manager Kenny
Dalglish, who accused his post-
match interviewer of being bang out
of order as he continued his defence
of Suarez, also said sorry on Sunday.
Sponsors urged Reds action
BY FRANK DALLERES
FOOTBALL

MANCHESTER CITY exile Carlos Tevez

has jeopardised his fragile hopes of a
rapprochement by launching a fresh
attack on manager Roberto Mancini,
who he accused of treating him like a
dog.
Tevez, who is due back at the club
today following four months of bad
blood, revealed he once nearly came
to blows with Mancini but also
pledged to win over the fans who
burned his shirt.
The Argentina star fled to his
homeland last year after City fined
him and made him train with the
reserves for refusing to come on as a
substitute in a September Champions
League defeat at Bayern Munich.
But, in a lengthy interview with
Argentinean television, he continued
to dispute the clubs version of events,
insisting he only refused to warm up,
and even then just because of barbs
from Mancini.
Tevez said he stopped warming up
because he felt Mancini was making
defensive substitutions, and then
bore the brunt of his managers tem-
per following a touchline row
between Mancini and Edin Dzeko.
Hes in the middle of an argument
so then he tells me to keep on warm-
ing up and treats me like a dog. So
when he spoke to me in that tone of
voice, I said: No, Im not going out,
Tevez said.
So I was willing to play, but the
coach was in such a foul mood
because he had that argument with
Dzeko. He started on me as well, start-
ed swearing at me. Mancini said some
horrible things to me.
Tevez, whose hopes of moving to
Spain, Italy or France in January and
the summer ran aground on the
Premier League leaders 25m asking
price, revealed a previous clash with
Mancini that almost boiled over into
violence.
Last season we almost exchanged
punches, he added. It was after a
home game against Newcastle. We
almost hit each other in the dressing
room but we spoke the following
day.
Mancini hinted on Sunday that an
apology would be necessary for Tevez
to be considered for selection again.
The South American did not indi-
cate contrition but said: Ive decided
to return to City. I know I have what it
takes to change the situation. I know
itll be hard, but its a nice challenge.
Mancini said Tevez would never
play for the club again following the
Bayern game, which contributed to
their group stage exit in the
Champions League.
If its true that Mancini said he
will welcome me back if Im fit, then
I like those quotes, but he also said I
was never going to be playing for him
again, so I dont know, Tevez added.
Ill do my best to be available and
play. I know I can be back on the pitch
in two weeks.
City have remained on course for
their first top-flight title since 1968
during Tevezs absence. Their next
match is against Porto on Thursday in
the Europa League.
BY FRANK DALLERES
FOOTBALL

Standard Chartered complained to Liverpool over Suarez

SCOTTISH champions Rangers look
set to this week become the biggest
British club to plunge into adminis-
tration.
The Glasgow outfit took legal steps
yesterday to notify the courts of their
intention, which would carry an
instant 10-point penalty in the
Scottish Premier League.
It follows months of speculation
about the threat of administration
and comes as the club wait for the
outcome of a tax tribunal that could
cost them 49m.
Rangers chairman Craig Whyte
insisted it was not a foregone conclu-
sion but called the move the most
practical way to safeguard the long
term future of the club.
Whyte bought the Ibrox side for 1
in May but has endured a controver-
sial tenure, with former chairman
Alastair Johnson last week citing
widespread stakeholder concern over
the use of future season ticket rev-
enue as security.
Trading of their shares on the PLUS
stock exchange was suspended last
month. Whyte added that the club
was earning 10m less than its 45m
annual liabilities.
A 10-point penalty would leave
Rangers 14 points behind SPL leaders
Celtic but still nine points in front of
third-placed Motherwell.
Meanwhile Portsmouth are set to
go into administration for the second
time in as many years. The
Championship club faces a winding-
up order over unpaid tax next week.
Administration to claim
biggest scalp in Rangers
BY FRANK DALLERES
FOOTBALL

FORMER West Ham and Charlton

manager Alan Curbishley has
emerged as the early frontrunner to
replace Mick McCarthy after Wolves
made the Yorkshireman the third
Premier League boss to be sacked this
season.
McCarthys five-and-a-half-year
reign was brought to an end yesterday
following Sundays 5-1 Premier
League humiliation at home to West
Midlands rivals West Brom, who are
also vying with Wolves for top-flight
survival.
Curbishley, who has been out of
work since resigning from West Ham
in September 2008, admitted he
would be tempted by a return to man-
agement at Molineux.
If I get a phone call I will talk to
them, as I have always said I wanted
to go back to the Premier League,
Curbishley said yesterday.
I have been favourite for things
before and nothing really has hap-
pened. We will just have to wait and it
depends where the people in charge
want to go and what they want.
Former Sunderland manager Steve
Bruce, who became the first casualty
of the current campaign in
November, has also been linked with
rescuing Wolves, who slipped into the
bottom three at the weekend.
McCarthy until yesterday the
fifth longest serving manager in the
division insisted on Sunday he
remained the man for the job but has
paid the price for a miserable run of
just one win in 13 games.
Wolves, who have placed assistant
Terry Connor in caretaker charge,
said: The board took the difficult
decision to terminate Micks contract
after a run of form which has seen
Wolves pick up only 14 points in the
last 22 League games, after a promis-
ing start to the season, culminating
in yesterdays 5-1 defeat.
Curbishley
in line for
Wolves job
Mancini treated me like a
dog, says returning Tevez
Tevez has not played for City since the Bayern game in September Picture: PA
BY FRANK DALLERES
FOOTBALL

Hazard drops big

Tottenham hint
LILLES coveted Belgian winger Eden
Hazard has revealed Tottenham could
be his unlikely destination in the sum-
mer.
The 21-year-old, who is being tar-
geted by a number of stellar European
clubs, is to leave the French champions
in the close season and has already
indicated his desire to move to the
Premier League. Maybe Ill go to
Tottenham. Its a great English club. I
said I would go to England, said
Hazard, who would cost potential suit-
ors around 40m, yesterday.
Captain Cook
scored his third
ODI century
Picture: GETTY