Cityam 2012-03-29

A
P
E
X
BUSINESS WITH PERSONALITY
PM fuels panic
as drivers are
urged to fill up
THE GOVERNMENT was accused
of provoking panic yesterday
after ministers urged motorists
to stockpile petrol ahead of pos-
sible fuel tanker strikes.
David Cameron chaired a
meeting of the Cobra commit-
tee, normally only convened in
times of emergency, to discuss
how to keep supplies going.
Downing Street later insisted
that while motorists should
consider keeping their tanks
topped up, there is no shortage.
And as the Unite union wel-
comed talks with Acas in a bid to
avoid industrial action, cabinet
office minister Francis Maude
suggested that a bit of extra fuel
in a jerry can in the garage is a
sensible precaution to take.
The AA yesterday pleaded
with drivers to not turn a
rumour into a crisis by panic-
buying.
Osborne has been criticised for new rules subjecting hot foods to VAT
GEORGE Osbornes pasty tax and
other hikes in VAT will push up the
cost of living even further, according
to official figures out yesterday, while
new data suggests higher wages could
also be about to stoke inflation.
The tax on hot food sold in retail out-
lets, along with higher duties on fuel,
cigarettes and alcohol, will pile 0.38
percentage points on to the consumer
price index (CPI) one-monthly rate, the
Office for National Statistics (ONS)
said yesterday.
CPI came in at 3.4 per cent last
month, which was slightly higher
than expected. The inflation rate has
remained above the Bank of Englands
two per cent target for 27 straight
months.
Pressure from wages has been mod-
est during this period, but data is now
revealing that pay settlements have
reached an average of three per cent,
up from 2.5 per cent the same time a
year ago.
Higher-level awards at four per
cent or above are being made in sec-
tors where prospects have brightened
recently, said Ken Mulkearn from
Incomes Data Services, which com-
piled the figures.
www.cityam.com FREE
Core inflation may prove stickier
than expected, said Henderson econ-
omist Simon Ward last night. JP
Morgan last week published a big
upward revision [to its forecasts] 2.9
per cent by December. It looks as if the
Bank of England will revise up infla-
tion estimates yet again.
Last years Budget also pushed up
costs, so the ONSs annual comparison
is less severe. Yet the 12-month rate of
consumer price inflation will still be
0.17 percentage points higher because
of Osbornes changes.
The news comes as surging oil prices
have forced the UK, US and French
government to consider releasing
emergency oil stocks to ease pressures.
Spot oil prices have surged by $20
(12.61) since the start of the year and
recently were trading at $125 a barrel,
triggered by tensions between Iran
and the West.
Frances energy minister Eric Besson
yesterday responded to questions on
whether France was willing to take
part in a release of reserves: It is the
US that has asked for it. France is
favourable to the suggestion.
We are waiting now for the conclu-
sions of the International Energy
Agency (IEA), he added.
WE REVIEW THIS YEARS HOT HORROR GAMES
BY MARION DAKERS
FTSE 100 5,808.99 -60.56 DOW 13,126.14 -71.59 NASDAQ3,104.96 -15.39 /$ 1.59 -0.01 / 1.19 -0.01 /$ 1.33 unc
INFLATION FEARS AS
TAX ON PASTIES BITES
SCARE TACTICS
ISSUE 1,602 THURSDAY 29 MARCH 2012
DONT MISS OUR
10 PAGE ISA SPECIAL
Starts on Page 29
Page 40
Certified Distribution
30/01/2012 till 26/02/2012 is 98,573
GDP REVISED DOWN: Page 6

UK FUEL SUPPLY: Pages 13 and 24

BY JULIAN HARRIS
AND JOHN DUNNE
New data shows wage settlements
are beginning to edge upwards
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
IPO success for food firm Annies
nShares in Annies surged 89 per
cent on their first day of trading
yesterday despite the organic food
company pricing its IPO above a
boosted price range. Listed on the
New York Stock Exchange, Annies had
the best debut performance since
LinkedIns shares soared 109 per cent
when the website floated for $45 last
May. Annies stock opened at $19 and
closed at $35.92. 11 out of 12 March
IPOs in the US gained on their first
day, while four out of 18 flotations last
month dropped immediately after
listing. According to the NYSE, the
average return for IPOs on their first
day of trading this year is 15 per cent.
BlackRock backs Glencore-Xstrata
nBlackRock yesterday came out in
support of Glencores planned 21.3bn
bid for Xstrata. The merger, which
would create the worlds fourth-largest
mining company, has been widely
criticised with Standard Life, Schroders
and Allianz Global all publicly coming
out in opposition. But speaking in Hong
Kong yesterday, fund manager
Catherine Raw, who helps manage
BlackRocks World Mining Fund, said its
natural resources team would accept
the offer. In terms of the natural
resources teams view, we see the joint
entity as being a better solution for
both companies, she told Bloomberg.
BlackRock is Xstratas second-biggest
shareholder. Glencore, the largest
publicly traded commodity supplier,
already owns 34 per cent of Xstrata and
agreed to buy the company for 2.8 of
its shares for each one in Xstrata.
G
E
T
T
Y
Facebook nears float as it
stops secondary trading
FACEBOOK will suspend trading of
its shares on the secondary market
from next week in a sign the social
network is inching closer to its mam-
moth IPO, expected in May.
The Menlo Park-based company is
said to have asked grey market oper-
ators to halt trades of Facebook
shares to avoid valuation churn
while it sets its IPO price.
SharesPost, a company that facili-
tates trading of unlisted shares, said
yesterday it will stop processing
trades of Facebook stock at close of
play on Friday to help ensure the
companys orderly transition into
the public markets.
Facebook shares were trading at
around $43 on SharesPost last night,
valuing the company at just over
$100bn.
The social network filed for its IPO
on 1 February, less than a week after
suspending trades of its stock on the
grey market, when SharesPost val-
ued the company at $74.3bn. A week
after filing its flotation form with
the SEC, Facebook hit a valuation of
$123bn on private-stock trader IG
Markets.
The eight year old website re-sub-
mitted its filing to the SEC yesterday,
admitting in an update that the
impact of its current patent clash
with Yahoo could be material to our
Osborne battle overwelfare cut
Plans by the chancellor to take 10bn a year,
or almost 1 in 20, out of the welfare
budget are being openly resisted by the
department for work and pensions in the
first sign of government infighting over the
coming spending round. George Osborne
made clear in last weeks Budget that
further welfare savings were crucial if other
departments were to be spared even deeper
cuts after 2015.
World Bank selection a hypocrisy test
Ngozi Okonjo-Iweala, the Nigerian finance
minister seeking to become the first non-
American to lead the World Bank, has
warned rich nations that the selection
process will test their level of hypocrisy.
Balfour Beatty warns of job losses
Balfour Beatty, the UKs biggest
construction company, has warned 12,000
staff in the UK they could lose their jobs as a
result of the downturn in the building
industry. With new infrastructure projects
expected to fall sharply after the Olympics in
London this year, the FTSE 250 company,
which employs 50,000 people worldwide,
said it was conducting a consultation
process.
Indians head queue for Marriott
An Indian property investor has been
selected as the preferred bidder for 42
Marriott hotels in the UK after offering
almost 750m. Blue Mountain Real Estate
Advisors is understood to have won a period
of exclusivity to collect funding for a deal.
Samsung backs green experiment
Britains flagging efforts to clean up its dirty
power stations have received a boost after
Samsung took a 15 per cent stake in an
experimental project in South Yorkshire.
Tory donors could stop giving to party
Major Conservative donors are threatening to
close their cheque books following the cash-
for-access scandal because they are
uncomfortable about the negative publicity.
Vauxhall factory future still unclear
Uncertainty still hangs over Vauxhalls
Ellesmere Port factory despite hopes that a
board meeting of General Motors' European
arm on Wednesday would lead to a decision
over the plant's future. A spokeswoman said
no decisions had yet been taken.
Regulator closes Olympic probe
Japanese securities regulators ended
their probe of Olympus, bringing the
inquiry into one of the country's biggest
corporate scandals closer to completion.
Investigations by police and prosecutors
continue, however.
Bertelsmann considers going public
Bertelsmann AG, in a startling about-face,
said it was considering an initial public
offering as part of a broader strategic
repositioning of the German media group.
WHAT THE OTHER PAPERS SAY THIS MORNING
DRIVING up the governments
foreign aid budget risks stoking
corruption in poor countries, an
influential House of Lords
committee has found.
The department for
international development (DfID)
must do more to tackle
corruption that stems from
British aid, the Lords economic
affairs committee will argue today.
DfID detected only 1.2m of
fraud in its 7.7bn budget in the
year to March 2011, the report
says, slamming the figure as paltry
and implausibly low.
The report added that the UKs
arbitrary target of committing
0.7 per cent of GDP to aid which
it plans to embed in law would
wrongly prioritise the amount
spent rather than results achieved.
Just last week the Independent
Commission for Aid Impact gave
DfIDs programme in Afghanistan
an amber-red mark, signalling
that it is not performing well and
needs significant improvements.
The US government has cut aid
payments to Afghanistan after
allegations that western funds are
being smuggled out of the country
in suitcases stuffed with cash.
The Lords committee argued that
humanitarian aid, which receives
under 10 per cent of the aid
budget, should be maintained.
Corruption risk
from foreign aid
target, say Lords
Zuckerbergs social network is preparing for its flotation, expected in May
2
NEWS
BY HARRY BANKS
BY LAUREN DAVIDSON
The new jobs website for London professionals
Got a story? news@cityam.com
CITYAMCAREERS.com
F
OR a Prime Minister whose only
private sector job was working in
public relations, it is astonishing
how bad his governments
communications skills have become.
From implausible anecdotes about
their pasty eating habits to panic-
mongering about petrol shortages,
David Cameron, George Osborne and
Francis Maude, the cabinet office
minister, have been blundering as if
there were no tomorrow. But while PR
matters, over time reality is even more
important and on that front the
news isnt good either.
Rising prices (and falling real wages
and wealth) are one of the main rea-
sons why the economy has under-per-
formed (and is now thought to have
shrunk by 0.3 per cent in the fourth
quarter). But it is looking ever less like-
ly that the Bank of Englands uber-opti-
mistic inflation predictions will be
EDITORS
LETTER
ALLISTER HEATH
Not just pasties: Inflation will remain too high for comfort
THURSDAY 29 MARCH 2012
met. Inflation will continue to fall, but
the decline wont be sufficient to make
enough of a difference. Osbornes Vat
and other hikes will boost the con-
sumer price index by around 0.4 per
cent, while oil and petrol prices are
higher than previously expected.
Until now, wage growth has
remained weak and below the rate of
inflation. While bad for workers, at
least this didnt trigger a dreaded
1970s-style price-wage spiral, a vicious
circle whereby higher prices trigger
compensating pay rises, an excessive
rise in demand (unchecked by a com-
placent Bank of England), further
price rises, even greater wage rises,
inflationary chaos and a collapse in
competitiveness. For the first time,
however, there are some signs that
workers and employers are beginning
to react to persistently high inflation.
The latest survey from Incomes Data
Services shows median UK pay settle-
ment reached 3 per cent for the three
months to the end of February. This is
up from the 2.5 per cent this time last
year. This is in part due to higher settle-
ments in industries for which the out-
look has improved. As long as they
remain at present levels, pay rises are
good as they eliminate most of the
effects of inflation.
But any sign wages are beginning to
rise uncontrollably would be a disaster
and signal the complete failure of
so hard to communicate properly with
people in call centres? Clearly, incom-
petence is endemic in Britain. But
why? What has gone wrong? Is it the
education system? Is it a creaking
infrastructure? Has it become too diffi-
cult to sack bad staff? Is it regulation?
Is the quality of management too low?
Have most people lost their work ethic
and pride in doing a good job?
What is certain is that millions of
hours are wasted every week dealing
with nonsense and errors, and this has
become a major drag on productivity,
economic growth and quality of life. It
is also very bad for the reputation of
capitalism, already battered by the cri-
sis. The situation needs to change but
how the revolution will come about is
the 1 trillion question.
Britains grand experiment in ultra-
loose monetary policy. We shall soon
find out which it is to be.
BAD SERVICE
Here is a question to which I genuinely
dont have an answer. Why is customer
service so bad at so many of Britains
largest firms? Its truly baffling and
the fact that the public sector is even
worse is no excuse. The fact that there
are a few key exceptions the top
supermarkets and online retailers
such as Amazon are pretty good
makes the failure of the others espe-
cially in retail financial services or in
telecoms especially irritating.
Why do so many transactions go
wrong? Faulty phones are replaced by
equally faulty phones, goods dont
turn up or if they do miss vital compo-
nents, paperwork is lost, simple proce-
dures take weeks and so on. Why is it
business, financial condition, or
results of operations.
Yahoo brought a legal case against
Facebook on 12 March claiming
infringement of 10 patents relating to
advertising, social networking, privacy,
customisation and messaging.
The Zuckerberg-owned website said
it will vigorously defend itself but
has yet to assert any counterclaims as
the litigation is still in its early stages.
Facebook, which has 845 average
monthly users, generated almost $4bn
in revenue last year.
Mark Zuckerberg, who dropped out
of Harvard to focus on the website he
started in his college bedroom, owns
28.4 per cent of Facebook and is set to
rake in billions when his company
floats.
But he has faced criticism for the
dual-class structure of the stock, which
will see the 27 year old control 57 per
cent of Facebook.
The social network has yet to disclose
which stock exchange it will float on,
but has reserved ticker symbol FB on
Nasdaq and NYSE.
Morgan Stanley is lead underwriter
on the $5bn IPO.
FRENCH oil giant TOTAL could lose
billions of pounds if its North Sea
gas leak leads to an explosion,
analysts warned yesterday.
The firm, which has seen $9bn
(5.7bn) wiped off its market
capitalisation since Tuesday when
the leak at its Elgin platform began,
faces losses from $200m up to
$10bn in a worst-case scenario of an
explosion, according to analyst
projections.
Bank of America analysts
estimated an explosion could cost
$10bn, hitting Totals earnings by
10 per cent, but other analysts said
the most likely outcome was that
the leak would be plugged with
BY KATIE HOPE
THE COST of using a mobile phone
abroad will be significantly cheaper
from this summer after the European
Union yesterday announced it would
cap roaming charges.
Effective from 1 July, subject to
approval, the cost of downloading one
megabyte worth of data will be no
more than 59p from this summer and
is set to drop to 17p in two years.
This marks the first time that data
roaming costs are capped.
Downloading an mp3 music track
takes about four megabytes of data.
Traditional phone services will also
face tighter cost regulation, with the
price of a one-minute call to be
capped at 24p, falling to 16p by 2014.
Sending a text will cost no more than
7.5p from this summer and five pence
in two years almost half the current
ceiling of nine pence.
Three, which has a ten per cent mar-
ket share in the UK, welcomed the
price ceiling after writing an open let-
ter to the UK government last month
calling for regulated roaming charges.
A Three spokesman said the cheaper
costs will encourage more consumers
Price of mobile
roaming to be
capped by EU
BY LAUREN DAVIDSON
to use their phones abroad and could
generate higher income for the net-
work operators.
But Everything Everywhere was dis-
appointed with the EUs decision. It
said competition was a more effective
way to drive down prices, citing that
data roaming costs have fallen 78 per
cent over the last three years without
regulation. Vodafone held a similar
pro-competition line.
The EU aims to bring roaming tariffs
into line with domestic prices by 2015.
Shares in Deutsche Telekom, France
Telecom and Telefonica the parent
bodies of T-Mobile, Orange and O2
respectively all dropped one per
cent.
Shawbrook to ramp up lending
after buying asset finance firm
SHAWBROOK, the new business
bank chaired by former RBS boss Sir
George Mathewson, is set to grow
this year after snapping up an asset
finance business from the
administrators of Icelandic lender
Kaupthing.
It has bought Singers Asset
Finance, a major provider of
finance to NHS trusts and small and
medium sized enterprises, which
did not enter administration and
has been trading well. Richard
Pyman will continue to run Singers.
BY PETER EDWARDS
Now small business lender
Shawbrook hopes to increase total
lending to more than 700m by the
end of this year.
After the deal, which was
announced today, Mathewson said:
Singers is a strong, successful
business, and by joining forces we
will be extending our offer to SMEs
and giving customers access to the
experience and knowledge within
both of our specialist lending
teams.
As RBS chief executive Mathewson
presided over the 20bn acquisition
of NatWest in 2000 before stepping
down a year later. His stint as
chairman ended in 2006.
He retirement was untarnished,
in contrast to that of his successor,
Fred Goodwin, and he made a
comeback in October last year when
Shawbrook was set up as part of a
rash of openings in the aftermath of
the financial crisis.
Shawbrook is owned by a special
opportunities fund created by RBS
but in which the part-nationalised
group holds only a 13 per cent stake.
Shawbrook, Metro and Aldermore
hope to challenge the dominance of
Barclays, HSBC, Lloyds and RBS.
Sir George Mathewson wants Shawbrook to compete with the big four banks
3
NEWS
cityam.com
the total cost depending on how
long this took.
CM-CIC Securities estimated in a
worst-case of a six-month
projection halt, costs would hit
$2.7bn, but said a best-case scenario
of a quick solution would reduce
costs to just $150-200m. Exane BNP
analysts said they would cut their
projection for 2012 earnings by two
per cent if it took six months to
repair the leak and two relief wells
costing $44m each were needed.
But Total, which owns 46.2 per
cent of the operation, which
accounts for 2.5 per cent of its
overall annual production,
yesterday played down the risk of
an explosion and said plugging the
leak was a question of days.
Total warned of cost of billions
as fears mount over gas leak
Competition, not
regulation, will serve
customers better.
The regulation may
lead to the scaling
back of investment.
Give consumers a
break... This will help
end the price gulf.
REACTIONS | Network operators
BY JAMES WATERSON
LLOYDS of London has suffered the
second-worst catastrophe losses in its
324 year history, paying out a record
4.6bn in disaster-related claims dur-
ing 2011.
Earthquakes in Japan and New
Zealand combined with floods in
Australia and tornadoes in America to
create a horrific year for underwriters,
dragging the market into the red with
a 526m loss, and taking total payouts
for the year to 12.9bn.
Despite this Lloyds was able to
boast that its balance sheet was
not weakened by the catastro-
phes.
2011 has been a really good
stress test for whether the
system works. If what
had happened last year
had happened in the
1990s the result may
have been very differ-
ent, chairman John
Nelson told City A.M.
Lloyds produced a
loss of just over 500m
and when you think that
Lloyds pushed
into red after a
year of disaster
we incurred claims of 13bn in the
year then relatively speaking its a
pretty good result.
The results, which aggregate the
financial performance of 80 compet-
ing insurance syndicates, rank as the
largest loss since the recordbreaking
payout that followed the terrorist
attacks of 2001.
Weak investment yields, reflecting
rock-bottom interest rates and strong
demand for high-quality government
bonds, also took their toll on Lloyds
last year, with total returns on its port-
folio falling 24 per cent to 955m.
Although the market made a loss
the board still enjoyed substan-
tial bonuses. Chief executive
Richard Ward saw his pay hit
1.44m, partly thanks to a
752,000 performancerelat-
ed reward, while finance
director Luke Savages
338,00 bonus allowed
him to take home
893,000.
4
NEWS
cityam.com
The most expensive insured
Thailand - 27July 2011
Severe Floods
Economic Losses: $30bn
USA - 22 August 2011
Hurricane Irene
USA - 8 April 2011
Severe Storms
Economic Losses: $2.2bn
USA - 4 April 2011
Severe Storms
Alabama, USA - 22 April 2011
Severe Storms & Tornadoes
Missouri, USA - 20 May 2011
Severe Storms & Tornadoes
$12bn
$7.3bn
$7bn
$2bn
$1.5bn
$5.3bn
AYEAR of natural catastrophes and
manmade disasters cost the world-
wide economy over $370bn (232bn)
in 2011, according to new research
from the insurer Swiss Re.
It estimates that insurers will
have to cover $116bn of this cost,
up from their December forecast
of $108bn.
Japans earthquake, which
caused over 19,000 deaths,
accounted for more than half the
economic loss and was the most
expensive earthquake on record,
causing $210bn of damage.
However a lack of earthquake
insurance protection in the
country meant insurers will only
bear 17 per cent of total costs.
Had Japan been more fully
insured, 2011 would certainly have
been the most expensive year ever
also in terms of insured losses,
said Lucia Bevere, Swiss Re senior
catastrophe data analyst.
Last summers Thai floods
caused $30bn of damage but
mainly in heavily insured
industrialised areas. As a result
Swiss Re estimates that insurers
are responsible for just under half
of the total bill.
New Zealanders are well insured
against disasters, particularly for
residential properties, allowing
them to claim back $12bn of the
$15bn cost of the Christchurch
earthquake.
BY JAMES WATERSON
Lloyds of London chairman John
Nelson said the results showed the
strength of the market.
Catastrophes
cost economy
232bn in 2011
5
NEWS
cityam.com
catastrophe losses in 2011
Japan - 11 March 2011
Earthquake & Tsunami
Australia - 9 January 2011
Severe Floods
New Zealand - 22 February 2011
Earthquake
New Zealand - 13 June 2011
Earthquake
$35bn
$2.3bn
$2bn
$12bn
CO-OPERATIVE Legal Services has
become the first alternative business
structure (ABS) to launch in the UK
after being officially approved by
regulators, along with a pair of
regional solicitors firms.
The Solicitors Regulation Authority
(SRA) said yesterday it had licensed
the Co-operative Group subsidiary,
Oxford-based John Welch and
Stammers, and Lawbridge Solicitors in
Kent as ABSs, three months after it
started taking applications under new
rules set by the Legal Services Act.
The licence will allow the Co-op to
expand its practice from personal
injury claims into family law, a move
the group says will lead to it taking
on an extra 150 employees this year.
Co-op has long positioned itself as
a figurehead for the liberalisation of
the UKs legal market, saying it
wants to become the countrys
biggest provider of consumer legal
services over the next decade.
This is a huge milestone for UK
legal services and the future of
alternative business structures, said
justice minister Jonathan Djanogly.
ABSs introduce more competition in
the market place, delivering
competitive pricing, higher standards
of product and more choice.
The SRA said yesterday that
around 60 applications had now
moved onto the second stage of the
licensing process, after initial
interest from nearly 180 applicants.
Co-op granted
licence to sell
legal services
BY ELIZABETH FOURNIER
BY PETER EDWARDS
A SURGE in public anger over pay-
ment protection insurance (PPI) has
helped push up complaints about
financial institutions more than a
fifth to 2.26m.
Complaints about the controversial
method of cover jumped 85 per cent
to nearly 980,000 in the second half of
last year, according to the Financial
Services Authority.
The total paid out in redress for gen-
eral insurance and payment protec-
tion hit 2.1bn, after banks
abandoned a long-running battle
against accusations of PPI mis-selling.
The overall number of complaints
rose 21 per cent to 2.26m. Barclays was
the single organisation with the most
number of complaints, at 282,899,
over the period, although the differ-
ent arms of Lloyds Banking Group
opened nearly 450,000 complaints
altogether.
The figures show, however, that the
number of complaints about banking
products fell two per cent to 787,096,
their lowest level since the second half
of 2006.
The British Bankers Association
PPI sales chaos
triggers a spike
in complaints
said: Claims from customers for PPI
repayment are being resolved as quick-
ly as possible for customers, but the
high volumes generated by for-profit
claims management companies need
similar attention.
Antony Jenkins, chief executive of
Barclays Retail and Business Banking,
said they had made progress in cut-
ting the number of annual complaints
by 31 per cent and Lloyds said it had
cut banking complaints by 30 per cent
although the overall figure rose
because of PPI.
Richard Lloyd, Which? executive
director, called for new regulator the
Financial Conduct Authority to be a
watchdog not a lapdog.
Number of complaints by type of product
2009
H1
2009
H2
2010
H1
2010
H2
2011
H1
2011
H2
3,000
2,500
2,000
1,500
1,000
500
0
Numberof
complaints(000s)
Banking
General insurance&pureprotection
Investments
Decumulation, lifeandpensions
HomeFinance
G
E
T
T
Y
BANK of England officials want
the power to control mortgage
lending levels by forcing banks to
hold more capital against risky
high loan-to-value (LTV)
borrowing but does not want an
explicit cap on LTV levels because
it fears a public backlash.
Raising the capital banks must
hold against high LTV mortgages
may be desirable in times when
any sector is booming or deemed
to be riskier than is usually
realised, Financial Policy
Committee (FPC) minutes
revealed yesterday.
The minutes revealed some
members were attracted to the
BY TIM WALLACE
possibility of imposing more
direct limits on LTV ratios and
loan to income levels, because they
would cover all mortgages in a
simple and transparent way.
However, the FPC concluded it
did not want to impose specific
limits as it has no way to
determine confidently sustainable
levels of property prices and so
would not accurately be able to
know when to raise or lower ratio
limits in line with market
conditions.
Furthermore, banning certain
loans outright may be unpopular
with the public further
analysis, and public debate may
be needed before asking for such
powers.
UK GDP growth
Q2 Q1 2010 2011 Q3 Q4 Q2 Q1 Q3 Q4
1.2
1
0.8
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
6
NEWS
cityam.com
GOLDMAN Sachs has made some
concessions to unions over its board
structure, but has stopped short of
splitting Lloyd Blankfeins chairman
and chief executive roles for now.
Top execs at the American bank
have talked about dividing up
Blankfeins responsibilities in
response to corporate governance
concerns, but yesterday only went as
far as introducing a lead director
position on the board to hold off
complaints. AFSCME, a prominent
governance campaigner with shares
in Goldman, said the move is a step
in the right direction that will
provide a much needed and vital
check on the companys practices
and conflicts of interest. It has
dropped its call for Blankfeins job to
be split.
Goldman said in new corporate
governance documents that the lead
director will be chosen by the
independent directors. His or her
duties will include leading a yearly
CEO evaluation and if requested by
major shareholders,
being available for
consultation and
direct
communication.
Goldman gives
some leeway
in board fight
BY MARION DAKERS
ECONOMIC output fell more quickly
towards the end of last year than first
thought, official estimates showed
yesterday.
GDP contracted by 0.3 per cent in
the final quarter of last year, the
Office for National Statistics (ONS)
said, not the 0.2 per cent previously
reported.
The decline represents a sharp turn-
around from the 0.6 per cent in the
previous quarter and takes annual
growth to 0.7 per cent, down from the
0.8 per cent previously estimated.
Household consumption growth
slowed to 0.4 per cent in the quarter,
from earlier estimates of 0.5 per cent,
while real disposable incomes fell 0.2
per cent in the quarter, bigger than
the 0.1 per cent fall in the third quar-
ter as inflation continued to run
above wage growth.
Manufacturing led the decline with
a 0.7 per cent fall in output, followed
by construction at 0.2 per cent and
services at 0.1 per cent.
However, economists pointed to a
rising savings rate as evidence con-
sumers were repairing their balance
ONS: UK output
fell even faster
than expected
BY TIM WALLACE
sheets in the quarter, which could lead
to greater growth in the future.
Savings were revised up by 10bn for
the first three quarters of the year to a
rate of 8.3 per cent of gross disposable
income, despite low interest rates.
This means there would appear to
be greater scope over coming quarters
for a lower household savings rate to
support consumer demand, accord-
ing to economist Jamie Dannhauser
from Lombard Street Research.
ONS data also showed an improve-
ment in the UKs trade deficit, which
fell from 4.3bn in the third quarter to
4bn in the fourth, led by goods
exports rising four per cent, outstrip-
ping the one per cent rise in imports.
FPC aims to cut high
risk mortgage loans
FPC chairman Mervyn King is looking for ways to reduce risks to the financial system
Lloyd Blankfein has come
under pressure to
give up some of
his duties
D
ISASTER has been averted. Just
a few months ago, many
thought that Thomas Cook
was not long for this world.
After yesterdays update, it is clear
the firm will live to fight another
day. The imminent sale of its Indian
business, which is expected to net
130m, along with a stabilisation in
trading, means its debt repayments
no longer seem so onerous.
As far as the good news goes,
thats about it. Thomas Cook holds
the title of Britains oldest tour
operator and it is hopelessly stuck
in the past. It specialises in the kind
of travel that is dying out, what the
Association of British Travel Agents
BOTTOM
LINE
DAVID CROW
7
NEWS
cityam.com
NEW8 FROM THE
CTY OF LONDON
Get City news, info and offers at
www.cityoflondon.gov.uk/eshot
8tories supplied by the City of London
ADVERT8EMENT
8cott expedition
marked by 8t.
Paul's 8ervice
ord Mayor Alderman David
Wootton (pictured), Lady
Mayoress Wootton and the
Sheriffs of London attend a service
at St. Paul's Cathedral today to
mark the centenary of the Captain
Scott Terra Nova Expedition to the
South Pole. A commemorative
reception will be held afterwards at
the Guildhall.
Visit Keats House in
Hampstead on 15 April at 3pm
for a poetry reading to
commemorate the 100th
anniversary of the sinking of
the . FREE with an
admission ticket to the House.
www.cityofIondon.gov.uk/
keatshousehampstead
Barbican Music Library pays
tribute to Kathleen Ferrier, one
of the best-loved British singers
of the 20th century, with a free
exhibition (3 April - 30 May) of
photographs, programmes and
memorabilia to mark the
centenary of her birth.
The Askew Sisters (Emily and Hazel) sing and play English folk
music on fiddle and melodeon at Guildhall Art Gallery and Roman
Amphitheatre on 3 April at 1.05pm, as part of the City of London
Free Winter Concerts 2012. www.coIf.org
Kathleen Ferrier
celebrated at the
Barbican Library
The Titanic
remembered
through poetry
Folk singers perform at Guildhall Art Gallery
L
describes as bucket and spade in
Spain-type holidays.
Yesterday, management were keen
to trumpet a 14 per cent rise in
bookings at its specialist and
independent division, which sells
individual components like flights
and hotel rooms rather than package
holidays. Anyone who has observed
the huge success of Expedia or
lastminute.com in recent years will
know that this is the way the travel
sector has been going for some time.
Nobody seems to have told
Thomas Cook. Summer bookings
might be up, but sales in this
division accounted for just a quarter
of revenue last year. The firm is still
far too reliant on bland package
holidays to Costa Del Somewhere,
which generated three quarters of
revenue and yet hardly a single
penny of underlying profit in 2011.
The digital revolution also seems
to have passed it by. According to
Ipsos Mori, 68 per cent of Britons
now book their holidays on the
internet, yet online bookings
accounted for just 25 per cent of
Thomas Cooks sales in 2011. That
puts it well behind its closest rival
Tui Travel, which takes around 40
per cent of its bookings in this way.
Instead of investing in a better
website, former chief executive
Manny Fontenla Novoa brokered an
ill-judged merger with Co-operative
Travel last year, landing the firm
with 1,200 old-fashioned shops.
Whoever ends up occupying the
empty chief executives office has an
awful lot of work to do.
NOKIA VS APPLE
Nokia, once the king of the mobile
phone world, is taking on Apple, the
firm who stole its crown. Both are
desperate to develop the next
generation of Sim card. Apple has
submitted its design to the
European Telecommunications
Standards Institute, but Nokia is
threatening to scupper the whole
process by witholding crucial
patents. This is one of the few areas
where Nokia has an advantage. It
might seem like an irrelevance, but
it still owns much of the intellectual
property that underpins the mobile
phone. The so-called patent wars
have only just begun.
The UKs oldest tour operator is still stuck in the past
THIRTEEN logistics firms, including
UPS, Panalpina and Expeditors , were
fined a total of 169m (141.6m) by
the European Commission yesterday
for cartel activities.
The European Commission said
the companies fixed prices in the air
freight forwarding business in four
cartels between 2002 and 2007,
identifying themselves in their
secret talks with code names such as
asparagus and courgettes.
Logistics firms fined 169m
in Europe for cartel activities
THOMAS COOK: Page 10

BANK of America chief executive offi-
cer Brian Moynihan made $8.1m
(5.1m) in total compensation last
year, more than four times the $1.9m
he received in 2010, according to a
filing with the US Securities and
Exchange Commission yesterday.
The news came as it emerged that
Moynihan was compiling an
international advisory board in a
bid to boost business from overseas,
in a switch for the US-focused bank.
Bank of Americas Moynihan
total pay for 2011 hits $8.1m
TWO former directors at doorstep
lender Cattles have been banned
and fined for misleading investors,
the Financial Services Authority said
yesterday.
Cattles, which was FTSE 250-listed
until its shares were suspended in
2009, breached a number of the
FSAs market abuse, listing and
disclosure rules and execs at the
loan company failed to act with
integrity, the watchdog said.
James Corr, former finance
director and now an independent
Ex-Cattles directors fined 600k
by FSA for misleading investors
BY MARION DAKERS
financial services professional, has
been fined 400,000 and banned
from performing any function
relating to FSA-regulated activities.
Corr was fired in 2009 after a
review of the lenders finances
revealed a 700m black hole.
Peter Miller, who was finance
director at subsidiary Welcome
Financial Services until he was also
sacked in 2009, was slapped with a
200,000 fine and also banned
yesterday.
A third exec, former Welcome
managing director John Blake, has
also been banned and fined 100,000
L
A
U
R
A

L
E
A
N
/
C
I
T
Y

A
M
8
NEWS
cityam.com
300 INSURANCE
CONTRIBUTION
4 YEARS
SERVICING
4
TH
YEAR EXTENDED
GUARANTEE
UP TO 3 YEARS
ROAD TAX*
3 YEARS 6.4% APR
REPRESENTATIVE
CHOOSE 3 OFFERS
ON YOUR NEW CR-V,
JAZZ OR INSIGHT
YOUR HONDA,
YOUR WAY.
Fuel consumption gures for Honda range in mpg (l/100km):
Urban Cycle 23.2 - 61.4 (12.2 - 4.6), Extra Urban 40.4 - 67.3 (7.0 - 4.2),
Combined 32.5 - 64.2 (8.7 - 4.4). CO2 emissions: 201 101 g/km.
Call: 0845 200 8000 to nd your local
Honda dealer, or visit: www.honda.co.uk
Models shown: Jazz 1.4 ES Manual in Azure Blue Metallic at 13,935, CR-V 2.0 ES Manual in Urban Titanium Metallic at 24,235 and Insight IMA EX in Spectrum
White Pearl at 21,435. Terms and Conditions: Offers valid on new retail CR-V, Jazz (including Jazz Hybrid) and 11YM Insight models ordered from 16 December
2011 to 31 March 2012 and registered by 30 June 2012. Offers applicable at participating Dealers and are at the Promoters absolute discretion. Servicing: Four
years complimentary servicing or 50,000 miles, whichever comes rst, and includes a maximumof four services. Complimentary servicing covers the manufacturers
scheduled servicing only. 4th Year Extended Guarantee: Additional coverage extends the original Standard Warranty to 4 years / 120,000 miles (whichever occurs
rst), and will Guarantee the vehicle is free from material and manufacturing defects (mechanical and electrical items only, excludes items which can be expected to
wear). Road Tax: *Jazz/11YM Insight - monetary amount equivalent to the cost of Road Tax (Vehicle Excise Duty) for the rst three years of the vehicles life will be
paid at time of purchase at the prevailing rates of First Year and Subsequent Year VED. CR-V - monetary amount equivalent to the cost of Road Tax (Vehicle Excise
Duty) for the rst year of the vehicles life will be paid at time of purchase at the prevailing rate. Insurance contribution: Monetary amount of 300 will
be paid at time of purchase as a contribution to insurance costs. Honda Aspirations (PCP): Indemnities may be required in certain circumstances.
Finance is only available to persons aged 18 or over, subject to status. All gures are correct at time of publication but may be subject to change. Credit
provided by Honda Finance Europe PLC, 470 London Road, Slough, Berkshire SL3 8QY. You do not have to pay the Final Payment if you return the car at the end
of the agreement, you have paid all other amounts due, the vehicle is in good condition and has been serviced in accordance with the Honda service
book and the maximum permitted mileage of 10,000 per annum has not been exceeded. LOVE HEARTS , SWIZZELS MATLOW LTD.
Scan me to see
the latest offers
but is appealing his case.
The FSA wanted to fine Cattles and
Welcome, but their financial
circumstances made it impossible.
Cattles declared a pre-tax profit of
165m for 2007, when it had in fact
lost 96.5m with half of its 3bn
loan book in arrears, the FSA said.
Investors who took part in a
subsequent 200m rights issue may
well have done so because of the
misleading figures, it added.
Last March, Cattles said its
investors would receive only 1p for
each share, compared with a rights
issue price of 1.28.
BROKER Icap said clients have redis-
covered their appetite for risk amid
the spring rally in equity markets.
The worlds largest interdealer bro-
ker, run by Conservative donor and
Downing Street guest Michael
Spencer, said profit for the year end-
ing 31 March would be at the upper
end of analysts expectations of
336m to 358m.
The figures are still substantially
down on November 2011 predictions
of 358m to 390m profit.
Yesterday Spencer, the founder and
chief executive, said: Icap is on track
for a robust performance for the year
despite the demanding economic
environment.
In the last three months we have
seen an improvement in risk appetite
in some markets. We expect to see a
slow move towards more normalised
markets as the year progresses.
The firm, which works in the bond,
foreign exchange and swaps market,
said its oil and gas arms had per-
formed strongly in its final quarter.
Shares dipped 3.5 per cent to 394.6p,
Icaps relief as
clients taste for
trades returns
BY PETER EDWARDS
however, on analysts concerns over
credit markets and whether banks
foreign exchange arms can match
trades themselves rather than use an
external venue such as Icaps EBS.
It has reduced expenditure by 20m
during the current financial year, part-
ly by cutting jobs and bonuses in less
profitable areas.
Spencer, a former Tory treasurer, was
this week named as one of the City
grandees who have attended dinners
at Prime Minister David Camerons
official residences. Last month Icap
bought European biofuels dealer Sun
Commodities although it did not
declare the value of the deal.
Voice broking looks like it has been stronger than the weak electronic vol-
umes seen in recent months. Prots will be at this year with the benet of 20m
of savings, largely from lower bonuses, which may not be sustainable.
ANALYST VIEWS
In terms of outlook, Icap has seen an improvement in risk appetite in

some markets and management expect a slow move towards normalised mar-
kets as the year progresses. The shares have performed well year to date
reecting this improvement.
We expect Icap to report further cost cuts for full year 2013 with its full
year results announcement in May. We forecast a three per cent decline in ICAPs
full year 2013 xed cost base.
WHAT DO YOU MAKE OF

ICAPS LATEST UPDATE?
Interviews by Kendal Gapinski
JAMES HAMILTON NUMIS SECURITIES LIMITED
SARAH ING SINGER CAPITAL MARKETS
NESE GUNER CITIGROUP

ICAP PLC
394.60
28Mar
23Mar 22Mar 26Mar 27Mar 28Mar
425
420
415
410
405
400
395
p
Michael Spencers Icap will make around 350m profits despite lowering expectations
TOPPS said yesterday that muted
consumer spending and a sluggish
housing market in the UK hurt
revenue in the first half of the
financial year, sending the companys
shares down four per cent.
It doesnt seem to me housing
transactions will fall below current
levels, chief executive Matthew
Williams said. He said the company
was in the fourth year of all-time lows
with 800,000 housing transactions per
year, compared with 2006 when
transactions peaked at 1.7m.
The tiles and flooring retailer,
which operates 319 stores, said
revenue for the 26 weeks to 31 March
is expected to fall 2.5 per cent to
86.9m.
Like-for-like sales in the first quarter
of 2012 is predicted to have decreased
4.5 per cent compared with a 1.8 per
cent increase a year ago while
adjusted sales for the second quarter
are expected to fall by four per cent.
Despite the drop in sales, Topps said
it continued to boost its market share
to 26 per cent and expects to end the
financial year with 325, in line with
previous guidance.
Analysts at Peel Hunt said Topps
remains one of the leading potential
recovery stocks in the sector. However,
other analysts are more wary, voicing
concerns that other retailers
improving their home offers could
start to provide tougher competition
for Topps.
Tough housing
market weighs
on Topps Tiles
BY HARRY BANKS
THOMAS COOK said yesterday that
its recently launched advertising
campaign and improvements to its
websites helped improve bookings
in recent weeks as the debt-laden
operator attempts to turn its busi-
ness around.
The worlds oldest travel firm,
which was rescued by its banks after
a cash crisis late last year, reported a
19 per cent year-on-year uplift in
online UK bookings for mainstream
holidays in the past four weeks.
Despite the recent uplift, the com-
pany said UK sales for the summer
season overall remain two per cent
behind the previous year while its
mainstream summer holiday book-
ings, package tours to destinations
such as the Canaries and Balearics,
also dropped sharply by 10 per cent.
The troubled operator, which
issued three profit warnings last
year culminating in the departure
of its chief executive Manny
Fontenla-Novoa in August, has been
trying to revive sales by reducing its
capacity and shifting its focus
Thomas Cook
sees summer
sales pick-up
BY KASMIRA JEFFORD
toward more specialised holidays.
In the UK this winter, bookings for
specialist holidays rose by one per
cent, and were up a further 14 per
cent for the summer period.
A spokesperson for the firm said
the group had seen a bounce back in
specialised bookings to North
African destinations like Tunisia,
where demand had fallen sharply
due to social unrest in the region
last year.
The group failed to announce a
new chief executive yesterday.
Shares, which have fallen 85 per cent
in the past year, closed down 0.5p at
22.75p.
Dominos investors
protest against pay
SHAREHOLDERS in Dominos
Pizza protested against the firms
proposed bonus package for its top
executives at the AGM yesterday as
quarterly sales slowed.
Over 16 per cent of investors
voted against changes to the
remuneration report that will see
the top directors take home up to
500 per cent of their salary in
bonuses if they achieve their long-
term target of 15 per cent earnings
per share growth over three years.
Dominos said following
consultation with many of our
BY KASMIRA JEFFORD
larger investors, we have noted
their views but said it was pleased
with the overall outcome.
The results of the meeting were
published after Dominos revealed
like-for-like sales across its 660
mature stores rose 3.5 per cent in
the three months to 25 March,
down from 4.2 per cent in the same
period last year.
Like-for-like sales growth in all
Dominos UK stores slowed to 3.6
per cent from 5.5 per cent in the
first quarter of 2011 while Ireland
jumped into positive territory, up
1.7 per cent compared to a 10.5 per
cent fall last year.
10
NEWS
Dominos CEO Lance Batchelor talked up the firms sales growth
Thomas Cook Group PLC
25.5
25.0
24.5
24.0
23.5
23.0
22.5
p
22.75
28Mar
cityam.com
MURDOCH-owned publishing
house HarperCollins saw revenues
reach a three-year high in its UK
division last year.
Sales of digital books grew seven-
fold as tablets and e-readers invaded
the market, driving turnover up 4.7
per cent to 254m in the year to
June 2011. HarperCollins, which
publishes classic British authors
including JRR Tolkein, CS Lewis and
Agatha Christie, more than doubled
its operating profit but saw pre-tax
profits halve to 14m.
The publisher named Peter
Mandelsons memoir The Third
Man as one of its biggest sellers,
alongside the five novels in the
book series behind cult TV show
Game of Thrones.
HarperCollins UK publishes
around 1,000 books a year.
BY LAUREN DAVIDSON
G
E
T
T
Y
ENTERTAINMENT One, the film and
TV content company, said yesterday
that it is looking to promote its stock
to a premium listing after a particu-
larly strong fourth quarter.
Listed on the London Stock
Exchange, the group moved from AIM
to the main market in July 2010 and
said it hopes to upgrade its shares in
the coming year.
Entertainment One said full-year
results will be in line with expecta-
tions after a busy year of film releases,
including Bafta-winning Tinker Tailor
Soldier Spy, boosted revenues.
Breaking Dawn Part One, the latest
instalment of the Twilight franchise
and Entertainment Ones biggest hit
to date, was issued on DVD earlier this
month and quickly became the UKs
highest selling release so far this year.
The entertainment distribution
company also had a successful year in
the US, where its TV show Peppa Pig
was granted extra broadcast time.
The porky character will trot over to
Asia in the coming year and a new
Twilight firm
eyes premium
listing on LSE
BY LAUREN DAVIDSON
range of Peppa Pig toys will hit shop
shelves in time for Christmas.
Last month the company said it had
ditched plans to sell itself in favour of
making a major acquisition.
Entertainment One said yesterday it
was still assessing opportunities.
Its shares closed 1.6 per cent higher
at 1.55 yesterday.
EMAP, the multi-platform media
group, is changing its name as part
of a restructure which will see its
core business split into three
operating divisions.
The business-to-business media
and events company, owned by
Guardian Media Group and private
equity firm Apax, said it will ditch
the name Emap and rebrand as Top
Right Group in reference to the top
right area on graphs.
However, the Emap name will live
on in the companys publishing arm,
which publishes Retail Week and
Broadcast and accounts for about 18
per cent of group turnover.
The exhibitions, conferences and
festivals sector will be redubbed i2i
(read: eye to eye) Events while the
data division will adopt the name 4C
(read: foresee).
They account respectively for 44
and 38 per cent of turnover.
While the move would make it
easier for Emap to sell off chunks of
its business, the company denied
yesterday that this was its plan.
But it is thought likely that the
group is looking to make a sale.
Chief executive Duncan Painter
said, Were devolving responsibility
from the centre and will give our
new operating companies the
freedom to be more independent,
agile and single-minded in pursuit of
their objectives.
The restructure will not result in
job losses but staff will be relocated
from the Camden headquarters.
Im not too worried as I very rarely drive and only on
the weekend. I am not panic buying or stocking up. If
the union strikes and the government brings in military drivers, its
not going to be the ideal situation, but it will have to be done.
These views are those of the individuals above and not necessarily those
of their company
HUGH LITTLE
CBRE
ARE YOU WORRIED ABOUT THE UKS FUEL SUPPLY?

Interviews by Kendal Gapinski and Joe Softley
CITYVIEWS
Entertainment One Ltd
157
156
155
154
153
152
151
150
p
155.00
28Mar
13
NEWS
cityam.com
The New Lamiga Chair with ERGO-DISC
Contact K+N | T: 020 74909340 | E: stomlinson@kn-international.co.uk | www.koenig-neurath.com
K+N City 52 Britton St London EC1M 5UQ
For a limited period only, you can purchase the Lamiga Chair for only 550.00 + VAT
*Subject to status, available to business users only. The terms set out above are given solely upon the
understanding that they do not constitute any part of an offer or a contract. Please accept this offer as merely
an invitation to treat. Once approved any agreement will be subject to a one-off administration charge. Written
details on request fromPlus Finance Limited, The Old Perfumery, 24 HighamRoad, Chesham, Bucks HP5 2AF
LAMI GA CHAI R
*Only 22.95
+VAT

interest free over 24 months
The ofce chair that
hugs your back and
supports your spine.
Embraces your back & supports your neck
The perfect ergonomic solution
To fnd out more about the Lamiga Chair,
scan this code into your smartphone.
LAMI GA

CHAI R LAMI GA

CHAI R

LAMI GA

CHAI R LAMI GA

CHAI R

into your smartphone. scan this code
Lamiga Chair e h t t u o b a e r o m t u o d n f o TTo
ergonomic solution The perfect
& supports your back Embraces your

into your smartphone.
, amiga Chairr,
ergonomic solution
neck & supports your

stomlinson@kn-international.co.uk | E: 74909340 | 020 : TT: | Contact K+N
, 24 HighamRoad, Chesham, Bucks HP5 2AF The Old Perfumery details on request fromPlus Finance Limited,
an invitation to treat. Once approved any agreement will be subject to a one-of
fer or a contra understanding that they do not constitute any part of an offf
The terms set out above are given solely upon the . *Subject to status, available to business users only
, you can purchase the Lamiga Ch For a limited period only y,
hugs your back and
f o e h T

ff
.koenig-neurath.com www stomlinson@kn-international.co.uk |
, 24 HighamRoad, Chesham, Bucks HP5 2AF
ritten administration charge. W f one-offf
fer as merely act. Please accept this of
The terms set out above are given solely upon the
T A hair for only 550.00 + V VA
K+N City 52 Britton St Lond
hugs your back and
t a h t r i a h c e c

.koenig-neurath.com
on EC1M 5UQ K+N City 52 Britton St Lond
Private Property
Finance
Individuals, companies, SPVs etc.
We will arrange funding for you
from 30k to 20m.
A quick and true alternative
to slow bank funding.
Soho Corporate
0208 123 2151
www.sohocorporate.co.uk
Steven McColl Investment Partner at Soho Corporate.
Gozpoza4e Ftnanotezs
Have you lett or tblnklng about
leavlng your current employer!
Do you have one good deaI prospect!
Contact us olrectly or tbrougb your
preterreo lntermeolary at
theonedeaI@newpiercapitaI.con
Lstabllsbeo 2008 / FSA regulateo
LEGOLAND owner Merlin Entertainments said yesterday that it could float in 2014, after a 2bn
IPO fell through in early 2010. The group, which also owns Madame Tussauds, the London Eye
and Thorpe Park, grew revenues 15.9 per cent to 928.4m as visitors increased to 46.4m.
Merlin said the opening of the Legoland Windsor Hotel will boost results in the coming year.
LEGOLAND OWNER BUILDS REVENUES HIGHER
HarperCollins gets mega boost from e-books
Im not personally worried, but Im worried about my
wife as she uses the car the most. The reserves are
already stretched with the threat of the strike, so the government
needs to do what is necessary to keep cars on the road.
PATRICK OCONNOR
ABERDEEN ASSET MANAGEMENT
Im very worried about it because if they strike, no one

will be able to get anywhere. Im not queuing up to
buy petrol now, but I will once Im paid. If I dont have my car
then I wont be able to get to work.
CHARLOTTE CURTIS
RPS
BY LAUREN DAVIDSON
Twilight is the highest selling DVD release
so far this year in the UK and Canada
Emap rebrands
and splits itself
into three parts
CUSHMAN CASHING IN ON ITS OWN OFFICES
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
14
cityam.com
cityam.com/the-capitalist
A
NTHONY Seldon, a biographer
of Tony Blair, a guru in
happiness and the master of
the private school Wellington
College, is moving full steam ahead
in his ambition to establish a
network of Academy schools.
Wellington has already opened
one college, Wellington Academy,
with the help of a 2m donation
from the ex-Goldman Sachs part-
ner Tim Bunting. Now it has hired
James OShaughnessy), David
Camerons former head of policy,
to help take the project on to the
next stage.
Wellington wants to establish a
network of Academy schools in
the state sector.
Says Seldon, who is famous for
his opinions about the search
for happiness: Our goal is to
create a group of Academy and
international schools with
Wellington College at its heart
and its inspiration, bound
together by our unique ethos
of very high academic achieve-
ment combined with holistic
education.
Governments believe you
can have either academic
standards or holistic educa-
tion we say you can have
THECAPITALIST
Wellington master hires
No 10 aide for schools plan
Call 0800 049 4448 or visit carphonewarehouse.com
BETTER
JUST GOT
PLAYTIME
BlackBerry
PlayBook
2.0 16GB
169
Also available in 32GB and 64GB
Geek Squad service plans available from 7.99 per month.
BlackBerry, RIM, Research In Motionand related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license fromResearch In Motion Limited.
both, and our results prove it.
Seldon doesnt only have financial
backing from an ex-Goldmanite. He is
also blessed with a City veteran chair-
ing his schools board of governors,
Sir Mike Rake.
Sir Mike probably finds
Wellington easier to chair than
easyJet where the former KPMG
chairman has got the airlines
founder constantly breathing
down his neck, querying his col-
leagues pay and bonus deals
relentlessly.
Says Sir Mike: British business
needs now more than ever
young people who have had
their young characters and
intellect developed in an envi-
ronment such as Wellington
College.
Its not clear whether this sort
of character building includes
pupils at the new schools being
encouraged to stand on their
heads each day while they prac-
tise yoga as Seldon is wont to do.
Seldon wont say whether the
standing upside down commit-
ment is a prerequisite to
attending one of his schools
(we assume it isnt) but he
does tell the Capitalist that
everyone should do yoga.
WHEN Bank of America Merrill
Lynch star investment banker Andrea
Orcel left the group last week, his
departure merited just 11 words in
an internal message to staff. After 20
years at the bank, Orcels departure
was dismissed as sparsely as possible.
Why, the Capitalist argues, was the
farewell message so brief?
Sources close to the bank say the
terseness and brevity of the
communication reflected a sour taste
at the manner of Orcels leaving.
Prior to his departure, Orcel, who
didnt return the Capitalists phone
call, had manoeuvred to position
himself as the successor to Jonathan
Moulds, the violin-loving president of
Europe and Canada who is off to do
philanthropic works.
Orcels intended move required
four weeks of detailed work as the
bank negotiated with regulators to
gain approval for his promotion. The
banks executives also felt let down,
feeling they had tried hard to find a
role that would satisfy Orcels
ambition, only for him to ultimately
leave for rival UBS. At no time
during the process did he give a
heads-up on the fact he was thinking
of quitting, said one source.
Orcels move
leaves a sour
taste at Merrill
CUSHMAN & Wakefield has been hired to sell... its own London headquarters. On behalf of
current owner SEB, the property services firm boasts of a rare, prime and striking
building in Portman Square, which is on the market for the second time in three years.
VENTURE capitalist Jon
Moultons new turnaround
fund has chosen window
specialist Everest as its
maiden acquisition.
The Better Capital 2012
Fund has pledged 25m to
buy the firm and finance
its restructuring, it said in
a statement.
Everest generated
revenues of 173m in 2010
but has since endured
difficult trading
conditions, Better said. The
company employs more
than 900 people.
The fund will take a 95
per cent stake in the group,
while some founders retain
a five per cent holding.
Better Capital, which
Moulton launched in 2010,
has snapped up stakes in a
string of troubled firms
including Readers Digest,
housing group Connaught
and boat maker Fairline.
Its second London-listed
fund closed in January with
around 166m to spend. It
aims to buy up businesses
and force through
energetic implementation
of critical actions to return
[the firm] to profitability.
Moultons new Better
fund snaps up Everest
BY MARION DAKERS
BANK of America Merrill Lynch and
the Italian bank Mediobanca yester-
day began the investor marketing for
the forthcoming flotation of Brunello
Cucinelli, the premium cashmere
clothing line.
The founder (pictured), who runs the
eponymous brand, has decided to float
in Milan even though other premium
brands such as Prada or Graf dia-
monds have preferred a far eastern
location for their public share offer-
ings.
Hes very Italian and wanted to
have this IPO in his domestic market,
says one person close to the deal.
If the deal succeeds, it will represent
a triumph for the Italian financial
markets and signify a further return
to financial health following the
gigantic rights issue for Unicredit that
Bank of America Merrill Lynch also
masterminded earlier this year.
With the Eurozone crisis domi-
nating the headlines, many
commentators felt that the
Unicredit rights issue was
heading for disaster but the
deal was eventually a resound-
ing success with take-up of more
than 90 per cent, justifying
Bank of America
Merrills decision to
back it strongly.
The plan for
Brunello Cucinelli is
to raise around
150m of new
money, which would
BY DAVID HELLIER
take Cucinellis stake of around 95 per
cent down to between 60-65 per cent.
A management group holds the
remainder of the shares at the
moment and its stake will be diluted
too after the float.
The proceeds of the float will be
used to expand the brand outside of
Italy, with Asia being the main focus
of growth. The group has stores in
Mayfair and South Kensington,
London. The share issue will be taken
to Italian investors in the first
instance but also to other European
and US investors.
Pricing is expected at the end of
April with trading schemed in for
early May if all goes well.
News of the flotation comes during
a week of frenetic IPO activity in the
US, where around ten businesses are
due to complete IPOs.
Bankers are yet to try their luck in
the UK, where the IPO markets have
been effectively closed since the giant
Glencore flotation last year.
Sources close to the IPO market
in London are hoping that it will
re-open towards the end of the
year, with confidence bolstered
by the success of share flotations
elsewhere.
Recently, the relationship
between investors and private
equity groups and other
owners willing to sell
shares in listing compa-
nies deteriorated after
a series of flotations
flopped, with issues
either being pulled or
going ahead but then
disappointing as share
prices dipped below
their issue price.
Brunello Cucinelli is
aiming to raise 150m
Brunello Cucinelli specialises in top of the range clothing
London
Bridge
SE1
Employment . Corporate Immigration
Construction . Dispute Resolution
Insurance . Corporate Commercial
t. 0203 142 6768
e. john@jkwlaw.com
w. www.jkwlaw.com
15
NEWS
cityam.com
Banks start IPO
marketing for
BrunelloCucinelli
BRITISH foreign exchange company
Travelex, whose bureaux de change
are prevalent in many of the
worlds leading airports, yesterday
said it swung back to a profit in
2011 after netting gains of some
436m from the sale of key busi-
nesses.
Travelex, which is majority-owned
by private equity company Apax,
reported 2011 profits of 377.6m,
up from a 2010 loss of 59.6m.
Revenues at its ongoing operations
rose nine per cent to 586.7m.
Profits were boosted by the sale of
its Travelex Global Business
Payments (TGBP) division
last year to Western
Union, as well as
the disposal of
another business
to Mastercard.
The Mastercard
sale netted Travelex
290m last April, and
TGBP was offloaded
for 606m in
November.
Although Travelex has
sold off non-core assets,
the company has also made
acquisitions of its own in
key fast-growing markets,
such as Brazil and Africa.
Turning to the year ahead, global
trading conditions remain unques-
tionably challenging, chief execu-
tive Peter Jackson said in a
statement.
Despite these challenging trading
conditions, I am confident that our
strategy, together with our leading
brand and talented team of people
will generate further growth for our
group over the long term, he added.
The company said that online sales
now account for 30 per cent of all
sales in the UK, after Travelex saw a
34 per cent increase in web-based
orders globally over 2011.
During the year, it added 133
stores to its portfolio, as well as
175 dedicated ATM termi-
nals, increasing ATM
transactions by nearly
20 per cent. Travelex
also expanded into new
destinations, adding
locations in Malaysia,
acquiring a shareholding
in FX Africa, and buying
Grupo Confidence
Brazils largest provider of
foreign exchange services.
Apax Partners has
been the majority
shareholder in the
company since an
investment in 2005,
which valued
Travelex at 1.06bn.
PROPERTY services group Colliers
UK was yesterday taken over by
Canadian giant FirstService under a
pre-pack administration deal.
Debt-laden Colliers, which had
been in talks with FirstService since
January, appointed administrators
this morning before it was snapped
up for $22m (13.9m).
PROTESTERS linked to the long-
running St Pauls demonstration
have set up camp in an Olympic
construction site, stopping work on
the basketball training ground.
Ten to 15 campaigners, some of
whom camped at St Pauls Cathedral
as part of the Occupy movement,
have pitched tents on the Leyton
Marsh site, stopping construction
work. It follows a demonstration by
around 200 people on Saturday.
The Olympic Delivery Authority
insisted the structure will be
removed soon after the end of the
Games without lasting damage to
the land but yesterday protesters
threatened to take over sites, saying:
This is just the beginning,.
The Occupy movement suffered a
symbolic blow last month when its
tented camp was finally cleared from
outside St Pauls Cathedral.
Activists retain a presence at
smaller sites in London and are
expected to use the Olympics to step
up their campaign against coalition
austerity plans and what they claim
is a lack of accountability in the City.
Len McCluskey of trade union
Unite has also said workers should
consider disrupting the Games as a
protest against the planned
slowdown of public spending.
Last night a spokesman for the
ODA said: The basketball training
venue is a temporary structure that
will be removed within a month of
the end of the Games, and the land
restored to its previous state. The
vast majority of Leyton Marsh is
completely unaffected... We regret
that action has been taken which
has delayed work on the site.
Now activists
target Olympic
basketball site
Hansteen continues investment as earnings dip
TIM WALLACE, PETER EDWARDS
THREE competing bidders have
been shortlisted to build 800 homes
in the first neighbourhood at the
Queen Elizabeth Olympic Park after
the London 2012 Games.
Barratt Homes and Le Frak
Organisation, Taylor Wimpey and
London & Quadrant as well as East
Thames and Countryside
Properties, have been selected from
a shortlist of six potential
developers to build Cobham Manor,
the Olympic Park Legacy Company
(OPLC) revealed yesterday.
Chobam Manor, which sits
between Athletes Village and the
VeloPark in Stratford, will form
one of five neighbourhoods
developed on the Olympic Park,
with up to 8,000 new homes
eventually being built over the next
20 years.
The OPLC said it wanted to see a
return to Londons traditional
family neighbourhoods with
terraced and mews houses plus
duplex apartments set within tree-
lined avenues. Up to 70 per cent of
the 800 homes will cater to the
needs for larger family housing in
the area and 40 per cent will have
gardens. The neighbourhood will
also include a walk-in health
centre, two nurseries and the
nearby Academy school.
The OPLC, which is being advised
by Drivas Jonas Deloitte, hopes to
select a partner this summer in
time for the first homes to be ready
in 2014. In total, the Olympic Park
will provide 35 per cent affordable
housing.
PROPERTY investor Hansteen
Holdings has said it will continue to
hunt new acquisitions despite
posting a sharp drop in annual pre-
tax profits.
The FTSE 250 company, which
owns and manages real estate in the
UK and continental Europe, said
pre-tax profits fell to 8.9m from
BY KASMIRA JEFFORD
33.2m in 2010 after a fall in the
value of the groups property in the
Netherlands and Belgium of 19.3m.
Adverse currency exchange
movements on overseas assets also
hit net asset value, which fell by 2p
per share to 82p over 2011.
Hansteen, which has been
expanding its UK portfolio, bought
150m of industrial properties from
the Spencer Group in December,
bringing total acquisitions for the
year to 176m, against sales of 33m.
The groups rent roll rose 19.6 per
cent to 79.3m per year with a yield
of 8.3 per cent from 2,500 tenants.
Commenting on the property
market, chairman James Hambro
said: The investment market for
property is cyclical but the timing
and depth of the cycles are
unpredictable.
17
NEWS
cityam.com
Final three shortlisted
to build Olympic homes
The Olympic Park Legacy Company wants to build a traditional family neighbourhood
G
E
T
T
Y
BY JOE SOFTLEY
FirstService snaps up Colliers
BY MARION DAKERS
The sale leaves shareholders with
nothing due to the high levels of
debt in the firm, Colliers said in a
statement.
Chief executive Tony Horrell said
he will continue to run the company,
adding that it is business as usual
for us, and all our staff and client
teams will continue as before.
The company had debts of 34m at
the end of June 2011.
Asset sales help
Travelex swing
back into profit
BY HARRY BANKS
Travelex provides foreign exchange
services across the world
BUSINESSES are eager to hire more
staff, a survey showed yesterday
but they do not think ex-public
sector workers have the skills needed
for private sector work.
Fifty-eight per cent of companies
told Barclays job creation survey
they plan to create jobs over the next
12 months, almost unchanged from
the 57 per cent last year.
Few believe they have been
encouraged by government
initiatives, with 88 per cent saying
schemes to foster job creation have
come to nothing.
Small companies in particular are
increasingly looking to boost
headcount, with 51 per cent
planning on hiring, up from 41 per
cent last year.
This hiring spree is not expected
to make up for the large losses in
public sector jobs 71 per cent of
firms expect a shortfall in hiring.
In part this is because over half of
firms are not interested in hiring ex-
public sector employees, arguing
they lack suitable skills for the
companies needs.
Most UK firms
want to create
jobs this year
BY TIM WALLACE
G
E
T
T
Y
LONDON and New York are still the
best places for the worlds elite to
buy houses, a new study revealed
yesterday but competition is grow-
ing rapidly from Beijing and Dubai.
Quality of life, knowledge, influ-
ence and economic activity are all
key factors for the ultra-wealthy in
choosing where to invest, according
to the latest wealth report from
Knight Frank and City Private Bank.
London came top of the list in
almost every area, though
Washington DC pipped it at the post
to be named top city for political
influence.
In terms of economic growth, too,
the UK dropped behind every one
of the top 10 cities on that measure
is in China. However, despite the
Wealthy prefer
London when
choosing home
BY TIM WALLACE
rapid growth in China, London is still
expected to be top of the list in a
decades time with New York still in
second place, although Hong Kong is
expected to have dropped from third
in the rankings to sixth as Bejing,
Shanghai and Singapore keep
advancing.
Similarly Paris is forecast to fall
from fourth to seventh over the peri-
od.
Wealthy individuals and families,
especially those originating from
Europe, the Middle East, Africa and
Asia, have become extraordinarily
global in nature, said Citis Luigi
Pigorini. With English a popular sec-
ond language and a relatively weak
pound, the global wealthy have
focused their interest on London and
the wealth preservation it can
afford.
IN BRIEF
Mad Men fails to boost Sky
n Fewer than 100,000 people saw
series five of Mad Men, a drama about
advertising executives, debut on Sky
Atlantic on Tuesday night and only half
of viewers tuned in to the second
episode of the double-bill. While the
ratings figure is likely to grow as not all
Sky subscribers will have watched the
show live, it pales in comparison to the
355,000 Mad Men fans who watched
series four debut on BBC4. However,
viewer ratings for the programme were
300 per cent above Sky Atlantics
average. Last October, Sky was
understood to have offered 25 per cent
more than the BBC paid for the show.
BA offers more BMI concessions
n EU regulators are assessing extra
concessions offered by British Airways
owner IAG to gain approval for its bid
to buy Lufthansas BMI, after initial
proposals fell short, the EUs antitrust
chief said yesterday.
IAG wants to buy BMI to boost its share
of runway slots at Heathrow.
EU competition commissioner Joaquin
Almunia said IAG submitted additional
concessions on Tuesday, on top of
others offered earlier this month.
Sources said IAG had initially offered to
cede 10 slots at Heathrow but has now
raised this to 14.
18
NEWS
PROPERTY agent Savills said it was beginning to see the first green shoots of recovery
in some of the prime residential markets outside of London, driven by an increase in
affluent buyers making a move from the capital to the home counties. Savills said
commuter hotspots showed particularly strong quarterly growth of over five per cent.
LONDONERS HEAD FOR THE COUNTRYSIDE
INSPIRING GLOBAL EXCELLENCE
Sponsored by:
Scholarships & funding information
Meet admissions ofcers
Accredited MBA programmes only
Free informative sessions
L O N D O N 2 0 1 2
The Accredited
MBA FAIR
Saturday 21 April | Park Plaza Victoria Hotel, London, SW1V 1EQ
Prize draw
Registration opens: 11am; Last session ends: 17.15
Register now: www.mbaworld.com/mbafair
F
r
e
e

e
n
t
r
y
!
Scholarships & funding infor


e
e
r
F
r
n
r
e
e
n
t
r
y
!
e
F
r

edited MBA pr Accr
mative sessions ee infor Fr
edited The Accr
Prize draw

edited MBA pr
mative sessions
edited
mat
ogrammes o

L O N D O N 2 0 1 2
edited The Accr
MBA
day 21 April Satur | Park Plaza V
Registration opens: 11am;

L O N D O N 2 0 1 2
edited
AI FFA MBA
ictoria Hotel, London, SW1V 1EQ Park Plaza V
11am; Last session ends: 17.15

L O N D O N 2 0 1 2
AIR
ictoria Hotel, London, SW1V 1EQ

ed by: Sponsor
Register now: .mba wwww.

ed by:
.mbaworld.com/mbafair

NEW JOBS
NEW COMPANIES
EVERYDAY
CITYAMCAREERS.com
WWW.CITYAMCAREERS.COM
OVER
OR SCAN HERE
2000
FINANCE, LEGAL & I.T
SALARIES UP TO
JOBS
300K
cityam.com
M
O
R
N
I
N
G
U
P
D
A
T
E
Sign up to
our 10:30am
newsletter at
cityam.com
G
E
T
T
Y
ECB boss Mario Draghi pumped banks full of cheap cash in December and February
19
NEWS
cityam.com
Brought to you by your National Tourist Boards
great2012offers.com
Terms and conditions apply.
BANK lending to the private sector fell
again in the Eurozone last month,
with central bank efforts to get credit
flowing barely impacting the real
economy, data showed yesterday.
Loans to non-financial firms fell
3bn (2.52bn) in the month, down
from growth of 1bn in January, the
European Central Bank data showed.
That takes annual growth in corpo-
rate lending down to just 0.4 per cent,
from 0.7 per cent in the year to
January and 1.1 per cent in December.
Lending to households remained
unchanged in the month with a total
stock of debt outstanding at 5.24 tril-
lion, after rising 9bn in January and
falling 5bn in December, taking the
annual growth rate down to 1.2 per
cent.
Although this gloomy data suggests
the credit crunch is not over, there are
some signs in the money supply data
that the ECBs efforts to pump cash
into the economy are having an
impact.
BY TIM WALLACE
The central bank pushed over 1 tril-
lion into the banking system in two
long-term refinancing operations
(LTROs), taking bad assets off banks
and boosting liquidity in the hope that
lending would rise.
However, a broader measure of
money supply did accelerate in
February M3 rose 0.5 per cent in
January and 0.8 per cent in February,
after a 0.8 per cent fall in December.
The two 3-year LTROs have signifi-
cantly helped reduce the risk of credit
supply constraints in parts of the
Eurozone banking system, but it is too
early to sound the all clear, said econ-
omist Martin van Vliet from ING.
That said, the subdued pace of over-
all lending to the private sector also
likely reflects corporates and house-
holds remaining cautious in their
spending plans in the current weak-
ened and uncertain economic envi-
ronment. In terms of monetary policy
implications, todays data are a firm
reminder that interest rate increases
likely remain a very distant prospect
in the Eurozone.
Banks have not
lent out ECBs
1 trillion boost
DOUBTS grew over the
manufacturing recovery in the US
as new orders rose by less than
expected in February, according to
data out yesterday.
Durable goods orders rose 2.2 per
cent, less than the three per cent
forecast by economists and only
partially reversing Januarys
revised 3.6 per cent decline, the
commerce department revealed.
Manufacturing has been a key
support for the US recovery from
the recession, and a recent
acceleration in job growth has
boosted hopes the extra income
will create a virtuous cycle that
leads to more spending, faster
growth and further hiring.
Durable goods range from
toasters to big-ticket items like
aircraft which are meant to last at
least least three years. Non-defence
capital goods orders excluding
aircraft, a closely watched proxy for
future investment, edged 1.2 per
cent higher, missing hopes of a two
per cent gain.
BY HARRY BANKS
French GDP grinds to a halt as
household incomes stagnate
FRENCH economic growth slowed to
a crawl at the end of 2011, official
data confirmed yesterday.
GDP edged up by 0.2 per cent in
the final quarter of the year, slightly
slower than the 0.3 per cent gain in
the previous three-month period.
For the year as a whole the
economy expanded 1.7 per cent, up
from 1.4 per cent in 2010.
That low level keeps French
growth well below that of other
developed economies the G20 as a
whole expanded by 0.7 per cent in
BY TIM WALLACE
the final quarter of 2011, 0.9 per cent
in the previous quarter and 2.8 per
cent in the year as a whole.
Nonetheless, it is stronger than
Germany, which contracted by 0.2
per cent in the three-month period,
and the UKs GDP which fell 0.3 per
cent in the quarter.
Purchasing power only grew 0.1
per cent, after accounting for
inflation, while household spending
traditionally the engine of French
growth expanded by 0.2 per cent.
A spokeswoman for President
Nicholas Sarkozy welcomed signs of
recovery, suggesting the economy is
reaching the end of the tunnel.
However, economists were less
optimistic.
We expect French GDP to remain
flat in the first half of 2012 driven by
weak domestic demand, said
Barclays Capitals Fabrice Montagne.
The deterioration in the labour
market since June 2011 and sticky
energy prices are weighing on
household disposable real income
while further fiscal consolidation
will depress government
consumption. We believe the
recovery will come only later this
year and develop throughout 2013.
Worries over US recovery as
manufacturing sales weaken
BATS Global Markets has stripped
chief executive Joe Ratterman of the
chairmans role, days after the third-
largest US exchange operators
botched initial public offering (IPO).
The board, however, said it
unanimously supported Ratterman
as president and chief executive of
the company and cited better
corporate governance as the reason
for splitting the CEO and chairman
roles. Ratterman, a founding
employee of BATS, has led the
company since June 2007. He will
hold the chairmans position until a
successor is found.
The decision comes after a series
of glitches hit the market debut of
BATS on its own exchange on Friday,
causing the company to take the
extremely rare step of withdrawing
its IPO of shares. The aborted listing
also threw into question BATS
growth plans, including its bid to
compete with NYSE Euronext and
Nasdaq in the listings business and
expand in Brazil and Canada.
Over the weekend, disagreement
emerged between Ratterman and
Dave Cummings, the founder and
director of BATS, over plans for the
exchange. Cummings called for the
company to develop a credible IPO
plan and go public in the second
quarter, if possible. But Ratterman
said there were no plans to try for
another IPO in the foreseeable future.
BATS strips
Ratterman of
chairman role
BY HARRY BANKS
AFRICA-FOCUSED oil and gas firm
Ophir Energy yesterday raised 150m
in a placing to fund three explorato-
ry wells on blocks in Tanzania and
Kenya, and aims to acquire addition-
al blocks in the region.
The company successfully placed
30.5m new shares priced at 495p
each.
The placing will bolster the firms
strong cash position, giving it an
estimated 400m in total.
East Africa has been a
focus for exploration
since substantial
deposits of crude were
found in Uganda in
2006. This weeks
announcement by
Tullow Oil that oil had
been struck in Kenya for
the first time has also
fuelled interest.
Ophir Energy
has a 70
p e r
c e n t
inter-
Ophir in 150m
placing to fund
its African plan
BY JOHN DUNNE
est in Tanzanias coastal East Pande
Block and an 80 per cent interest in
Block 7 and is the operator in both of
them. The funding was arranged by a
JP Morgan Cazenove led consortium,
which also includes RBC Capital and
Oriel Securities.
[The placing] will allow Ophir to
maintain its current equity position in
the Block 1, 3, 4 JV with BG while we
continue to investigate the world-class
potential of this asset base, Ophir
chief executive Nick Cooper said yes-
terday.
At the same time we plan to
introduce industry partners into
our operated East African posi-
tions during the second half of
2012 and are preparing for a first
quarter 2013 East African pro-
gramme on our operated acreage
in Block 7, East Pande and L-09.
Ophirs shares closed almost
seven pence higher at 495p yester-
day as investors reacted well
to the placing.
The execution of the deal was led by
Chris Nicholls who is an executive direc-
tor in the UK corporate finance team at
JP Morgan Cazenove.
Nicholls also led on the initial public
offering of Ophir in July 2011 and has led
successful equity raises in recent years
for numerous UK companies including
John Laing Infrastructure, Land Securities
and Songbird Estates.
Cambridge University-educated Nicholls
has previously worked as an executive
director at Lehman Brothers and as an
investment banking executive at
Deutsche Morgan Grenfell.
He also worked in the audit & business
advisory department at accountants
Arthur Andersen.
Also on the team is Neil Passmore from
the oil and gas team and Ben Davies
leading on the ECM team.
In addition, Matthew Coakes at RBS
Capital Markets and Ashton Clanfield of
Oriel Securities also worked on yester-
days placing.
The placing was priced at 495p, a premi-
um to Tuesdays nights close of 488p,
and was seen as a success by the team in
a week in which Ophir has made its
expansion plans clear.
ADVISERS J.P. MORGAN CAZENOVE
CHRIS NICHOLLS
EXECUTIVE
DIRECTOR
20
NEWS
Ophir has outlined its oil exploration ambitions
THE HURLINGHAM CLUB & PARK, FULHAM, LONDON SW6
MINT
This sensational three day event kicks
off the weekend with a fabulous
corporate day offering world class polo
from six international teams, with
fully inclusive hospitality plus the new
Veuve Clicquot at Hurlingham evening
launch party.
Enjoy a classic British summer day out;
three polo matches, Veuve Clicquot
Champagne, lunch at the iconic
Hurlingham Club - the historic home of
polo - a quintessential afternoon cream
tea and to finish the day off, a rocking
party with live music and guest DJs.
An exciting range of hospitality options
to suit all budgets with prices from just
150 plus VAT per person.
Book now for a remarkable experience.
Telephone 0207 936 5284 or email
rachel@cityevents.uk.com.
The Best Corporate Day Out - as voted by CITY AM
Winner of Best Sports Attraction - London Lifestyle Awards 2010 & 2011
www.mintpolointhepark.com
Ophir chief executive Nick
Cooper says the placing will
fund further exploration
cityam.com
Petropavlovsk looks to hike its
gold production target for year
G
E
T
T
Y
EVRAZ, Russias largest steelmaker, has
said that the outlook for the global
steel industry will remain tough this
year after its 2011 net profit missed
market expectations by 31 per cent.
The FTSE 100-listed company, part-
owned by tycoon Roman Abramovich,
posted 2011 net profit of $453m
(285.3m) below the $661m forecast
by analysts and down four per cent
from 2010. However, revenue in the
period reached $16.4bn, ahead of the
$16.16bn forecast and up 22 per cent
year-on-year.
In the near-term, the outlook for the
global steel industry is likely to contin-
ue to be challenging in 2012, chief
executive Alexander Frolov said.
Our current expectation is for a
modest overall rise in steel consump-
tion, driven by demand from the
emerging markets.
Evraz warns of
tough 2012 as
profit falls back
BY JOHN DUNNE The company reported in January
that its 2011 crude steel output rose
three per cent to 16.8m tonnes. Evraz
said first quarter prices were flat
while costs are up because of the
strengthening rouble.
It expects volumes of finished steel
products to increase slightly this year.
The company will make a final 2011
dividend payment of $228m, or $0.17
per ordinary share, it said.
RUSSIAN gold miner Petropavlovsk is
likely to increase its 2012 production
target to reflect an increase in capaci-
ty at its flagship mines, chairman
Peter Hambro has said.
The company, which operates
open-pit mines in the Russian far
east, is forecasting a 680,000 ounce
production figure in 2012 around
eight per cent higher than last year
but this does not include planned
expansion of the Pioneer and Albyn
mines. Petropavlovsk reported a 52
per cent increase in the amount of
gold it sold in 2011, which along
with higher gold prices helped
deliver a tenfold increase in full year
net profit to $240.5m (151.3m).
Revenue more than doubled in the
period to $1.3bn.
IN BRIEF
StanChart shuts in Afghanistan
n Standard Chartered has made plans to
close its retail business in Afghanistan, trans-
ferring its operations to local bank
Afghanistan International Bank. Standard
Chartered's business in Afghanistan consists
of one branch, nine ATMs and gross assets of
$229m (144.2m). Subject to regulatory
approval, StanChart will maintain a corre-
spondent banking relationship with the local
bank that will mean it can still serve clients
doing business locally and from offshore.
Randgold Mali mines still open
n Gold miner Randgold Resources said yes-
terday that its mines in Mali were still open
despite a coup in the country. The miners
chief executive Mark Bristow has been in Mali
to monitor the situation and the unrest has
dented the share price of the FTSE 100 com-
pany. The company said that it had been able
to get enough fuel to keep its mines running
and that the Mali government had given
assurances. Randgold said in a statement:
Randgold will continue to engage with the
Malian authorities and monitor the political
situation in Mali, as well as the regional and
international communities reaction to the
events in the country.
HIG swoops for Rio Tinto alumina
n HIG European Capital Partners has offered
to buy three French alumina plants from min-
ing group Rio Tinto, Olivier Boyadjian, man-
aging director of the private equity firm's
French unit said. Boyadjian did not provide
financial details of the deal. Rio Tinto is sell-
ing the three plants located in Gardanne,
La Bathie and Beyrede in southern France
as part of a worldwide plan to scale back its
activities in aluminium. Rio Tinto, the worlds
third-largest diversified miner, signalled the
retreat last October when it unveiled plans to
sell 13 assets, only four years after buying
aluminium giant Alcan.
Amylin rejects $3.5bn Bristol offer
n Shares of Amylin Pharmaceuticals surged
46 per cent higher yesterday following
reports the company had rejected a $3.5bn
(2.2bn) unsolicited takeover bid from
Bristol-Myers Squibb. Bristol-Myers pro-
posed an acquisition at $22-a-share in a let-
ter to Amylin, which the board turned down
last month, according to Bloomberg, which
cited two people with knowledge of the mat-
ter. Spokeswomen for Bristol-Myers and
Amylin said they "do not comment on mar-
ket rumors or speculation."
LOS ANGELES Dodgers and owner Frank McCourt said yesterday that Guggenheim Baseball
Management will buy the baseball team for $2bn (1.3bn), helping the Dodgers to finally
emerge out of bankruptcy protection. The buying group includes Mark Walter, as well as
basketball superstar Magic Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly.
MAGIC GROUP SNAPS UP THE LA DODGERS
EVRAZ plc
400
390
380
370
360
p 359.80
28Mar
21
NEWS
cityam.com
Brought to you by your National Tourist Boards
No passports, no jabs, no visas, no euros. No wonder
holidays at home are so great.
Its all happening here in 2012, so make it a year to
remember. Choose from thousands of offers including
hotels, comfy B&Bs, cottages, train tickets, theme parks,
theatre trips, day trips, exciting attractions and loads
more. In fact, weve got everything you need for
a great holiday.
For thousands of great value offers, go to
great2012offers.com
Terms and conditions apply.
BY HARRY BANKS
22
LONDONREPORT
First Reserve
The leading global investment
firm dedicated to the energy
industry has appointed Alex T.
Krueger as president, the next
milestone in its senior
management succession plan.
Krueger has been with First
Reserve for thirteen years, most
recently serving as managing
director in London. He was
previously co-head of the companys buyout funds.
Kruegers elevation follows the expansion of the senior
management team, including Claudi Santiagos recent
appointment as chief operating officer, and nine senior
promotions at the managing director and director level.
Mitsubishi UFJ Securities Holdings
Cliff De Souza, currently chief executive of Mitsubishi UFJ
Securities International in London, will become principal
executive officer of the Japanese securities group, effective
1 April. He will report jointly to Tsutomu Tanaka and Akira
Kamiya, deputy presidents of the company. De Souza will
now be based in New York.
RSM Tenon
The UK professional services firm has made six new senior
appointments within its financial management team to
further strengthen and enhance its offering to corporate
and private clients. These include Nick Courtney, who has
been appointed head of corporate. He joins from employee
benefits provider Eden Red.
TRG Post Trade Services
The provider of post trade consulting services to the
financial community, covering regulatory change,
compliance and audit, has announced the appointment of
Steven Ramsay as director of implementation services.
Ramsay has previously held senior roles at Linklaters and JP
Morgan. He will be responsible for developing and
managing TRGs services to support clients in managing
and delivering their change portfolios.
Freshfields Bruckhaus Deringer
The global law firm has announced the elevation of twenty
new partners worldwide, effective 1 May. In London, those
becoming partners include Doug Smith, Matthew Bruce,
Ryan Beckwith, Geoff ODea and Michael Steele.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Drop in oil and
metals prices
sparks sell-off
U
S stocks declined yesterday as
sliding oil and metals prices
gave investors a reason to sell
commodity-related shares.
A sharp fall in US crude oil futures
hit energy stocks, prompted by talk of
a release of some US and European
strategic oil reserves. Materials shares
dropped as well.
A weaker-than-expected report on US
durable goods orders deflated some of
the recent investor optimism over the
economy, leading to softness in indus-
trial shares. Analysts also said quarter-
end stock buying, which lifted stocks
earlier this week and caused a number
of top performers to hit new 52-week
highs, may be waning.
Window dressing at the end of quar-
ter has probably driven up stock prices
over the last couple of days, said
Robbert Van Batenburg, head of equity
research at Louis Capital in New York.
Caterpillar, down 3.5 per cent at
$104.26, was the biggest drag on the
Dow. Major oil companies Exxon
Mobil, down 0.9 per cent at $85.86,
and Chevron, down 1.1 per cent at
$105.89, also weighed heavily on the
blue-chip average.
The S&P 500 materials sector index,
down 1.5 per cent, led the broad mar-
kets decline. All S&P 500 sectors were
lower, except for financials.
Despite the decline, the S&P 500s
ability to hold the 1,400 level was an
indication that the markets uptrend
was still in place, said Jim Paulsen,
chief investment officer at Wells
Capital Management.
The Dow Jones industrial average fell
71.52 points, or 0.54 per cent, to
13,126.21 at the close. The Standard &
Poors 500 Index slipped 6.98 points, or
0.49 per cent, to 1,405.54. The Nasdaq
Composite Index declined 15.39
points, or 0.49 per cent, to 3,104.96.
B
RITAINS blue-chip index ended
lower yesterday as disappointing US
economic data pushed investors to
cash in their quarterly gains,
setting the index on course for its first
monthly loss of the year.
The FTSE 100 closed 60.56 points, or one
per cent, lower at 5,808.99 points, extend-
ing losses in the afternoon after breaking
below its 50-day moving average at 5,850.
Weighing on the FTSE yesterday were
cyclical stocks as weaker-than-expected
durable goods orders data from the US, the
worlds largest economy and a key source
of profit for UK blue-chips, provided
investors with a good reason to cash in on
a strong first quarter.
Metals and mining stocks fell 4.3 per cent
and 2.9 per cent respectively, tracking cop-
per prices into the red as the weak US data
dented the demand outlook.
Steelmaker Evraz dropped 5.5 per cent
after it said the outlook for the global steel
industry would remain tough this year as
its 2011 net profit missed market expecta-
tions. But the FTSE was still up 4.3 per cent
year-to-date at close yesterday, supported by
a 19 per cent rally in the banking sector.
RSA Insurance was the top FTSE faller,
losing 7.5 per cent as the insurance sector
was hit by news of the second biggest ever
annual loss at the Lloyds of London insur-
ance market following a record run of
catastrophe claims. Also weighing on the
sector were ex-dividend factors, with both
RSA Insurance and Prudential trading
without their payout entitlements. Icap,
the worlds largest interdealer broker, fell
3.5 per cent in volume, as investors cashed
in on a 30 per cent rally since January after
the firms outlook statement was less
upbeat than the market had hoped for.
FTSE poised for monthly loss as hit
from insurers leads to technical fall
BESTof theBROKERS
Old Mutual PLC
163
162
161
160
159
158
157
p
158.00
28Mar
OLD MUTUAL
After the sale of its Nordic
operations, Deutsche
Bank has reinstated
coverage of the bank with
a buy rating and target
price of 190p, seeing the
valuation as attractive
despite a 45 per cent rally
since December.
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
in association with
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
TD Direct Investing
Apply now at
trading.tddirectinvesting.co.uk
0845 607 6002
Brokerage Services provided by TD Direct Investing (Europe) Limited (a subsidiary of The Toronto-Dominion Bank). Registered in England under No. 2101863. Registered ofce: Exchange Court, Duncombe Street, Leeds, LS1 4AX, United Kingdom. Authorised and regulated by the Financial Services Authority (FSA), 25 The North Colonnade, Canary Wharf, London, E14 5HS, United Kingdom (FSA rm reference
number 141282), member of the London Stock Exchange and the PLUS Markets. VAT Registration No. 397103051. Banking Services provided by TD Bank N.V.Incorporated in the Netherlands and registered as a branch in England and Wales under branch registration number BR006780. Authorised by the Dutch Central Bank (De Nederlandsche Bank DNB Institution Number 481) and subject to limited regulation
by the Financial Services Authority (FSA rm reference number 216791). Details on the extent of our regulation by the Financial Services Authority are available from us on request.
TDUK1059511.ADV.F.9
Broaden your horizons with online trading on
15 international exchanges
TD Direct Investing allows you to trade internationally wherever, whenever
on our award-winning TD Trading App or our fast efcient online trading
platform. You can trade quickly and easily on 15 international exchanges
from only 8.95 commission per online or mobile trade, with the option of
holding cash and stock in nine different currencies.
TD Direct Investing, puts you in control. The value of investments can go down
as well as up. You may not get back all the funds you invest. The potential for
prot or loss from transactions on international markets or in foreign
denominated currencies will be affected by uctuations in exchange rates.
23 Mar 22 Mar 26 Mar 27 Mar 28 Mar
5,950
5,850
5,825
5,875
5,900
5,925
FTSE
5,808.99
28 Mar
Henderson Group PLC
126.80
28Mar
129
128
127
126
125
124
p
HENDERSON
GROUP
Investec has upgraded the
fund manager to buy
with a target price of 149p
based on improving return
on equity trends, rising
margins and no further
restructuring costs in 2012.
Wolseley PLC
2,575
2,550
2,525
2,500
2,475
2,450
2,425
2,400
p
2,445.00
28Mar
WOLSELEY
UBS reiterates its buy
rating on the plumbing
giant following strong
first-half results, and ups
its target price to 2,650p.
The broker sees a mixed
outlook but raises full-
year 2012 EPS estimates
by a modest two per cent.
Sitting in front of a screen is just part of a contractors job
23
cityam.com
SENIOR JAVA DEVELOPER
INVESTMENT BANKING
45k-60k pa
A senior developer is required to join a global
financial services vendor based in the City. The
roles involves working on low latency, multi
threaded systems.
http://www.cityamcareers.com/job/7665
DIRECTOR QUANTITATIVE RISK DEVELOPER
NEW YORK CLEARING HOUSE
$150k-$180k pa + 30% bonus
A leading New York clearing house is looking to
expandits team. Thesuccessful candidate will
have a PhD in a highly quantitative field, with a
preference for computational mathematics.
IT INFRASTRUCTURE AUDITOR
BANKING
60k-65k pa +benefits
A high profile banking group is looking to fill a
post in its well established internal audit depart-
ment. Thesuccessful candidate is ideallyCISA,
CISSP or CISM certified.
SOLUTIONS ARCHITECT
BANKING
Up to 60k pa
A solutions architect is needed by a rapidly
expanding financial organisation to take on a
hands on role. Applicants must have experience
of JBOSS.
LINUX SQL SYSTEMS SPECIALIST
CENTRAL LONDON OR NEW YORK
90k pa + bonus and medical
A high profile Quant investment manager
requires a technologist to work in a bleeding
edge environment. The firm will provide devel-
opment through their research team.
JOBSoftheWEEK
TODAY ON
CITYAMCAREERS.com
I
T PROFESSIONALS in contract work
may seem to have it easy. Daily rates
are high, they regularly move
between jobs and, when their skills
are in demand, they can select projects
that suit their interests and professional
development. They have loyalty to their
industry, but not always to any one firm.
But IT contracting rests on more than
just technical skill and an eye for career
advantage. Those in contract roles, and
others considering whether to move into
contracting from a permanent IT job,
must consider the wider benefits and dis-
advantages and fulfil a broader range of
requirements.
Mercenaries must be more than skilful
to make money. Likewise, the capacity of
contractors to command lucrative pay-
ments depends on reputation manage-
ment, credibility, and convincing
employers of their special place within
the IT employment market.
UNCERTAINTY PREMIUM
Steve Yendell, executive director of Selby
Jennings, says that most move into con-
tracting either because they see that their
skills will be attractive in the market,
because theyll be able to work on a vari-
ety of projects, or for short-term income
Contract work is a lucrative
option for IT professionals
But youll need more than just technical skills to prosper, writes Tom Welsh
maximisation. Contractors get choice
over what they work on and where they
work.
This comes at a price. Yendell stresses
that contractors expect a pay premium
because they sacrifice the security and
benefits of a permanent position. James
Holland, head of global markets at
Alexander Black Recruitment, agrees.
The length of your contract is only the
length of the notice period written in it.
Theres no severance payment and youll
inevitably have times when you're out of
work for extended periods.
To maximise the benefits you can gain
out of contracting, therefore, its essential
to offer what companies want. To a great
extent, this rests on your technical ability.
According to Holland, you have to be up
to date, you have be top of your game. The
better you are technically, the more
money you can earn. But this isnt the
full picture.
REPUTATION MANAGEMENT
Holland and Yendell predict that Scala
and Python, two progamming languages,
will be highly sought-after by investment
banks and hedge funds in the near future.
Those looking to launch themselves onto
the contracting market should take
advantage of these trends, and take the
time to upskill. But a successful career in
contracting requires broader qualities.
Michael Crutchley, account manager at
Computappoint, the specialist IT
recruiter, says that good reputation is
essential. It can be built on the back of
ability, but contractors must also have
proven loyalty to their work and their
projects, and be good at commanding
authority. Anyone considering moving
into a contract role must be able to
demonstrate that, despite the nomadic
nature of their work, theyll be fully com-
mitted to their employers requirements.
Networking is perhaps a surprising
necessity for contractors. Some might pic-
ture IT professionals as the techies in the
corner, but once a reputation is gained, it
has to be managed. Close contact with
other contractors and employers can also
assist in staying informed of leading
industry innovations.
PERMANENT IMPLICATIONS
Contractors must know and reassure their
employers that they understand what con-
tracting implies. Contract work doesnt
provide the luxury of building a role with-
in an organisation, and contractors must
be able to add value from day one.
Employers want expertise to be imple-
mented immediately.
If considering a move from permanent to
contract work, you should be aware of the
limitations as well as the advantages. Daily
rates may compare well against an equiva-
lent permanent role, but ensure you factor
in the lack of a bonus, no job security, no
pension contributions, no holiday or sick
days. And determine that you want to
work on contract in the long-term, and not
for momentary monetary benefit.
Holland says that this final point is cru-
cial. If youve been a contractor, any
recruiter and most employers will want to
know why you want to go back into a per-
manent contract. Just as its not necessar-
ily easy to jump from permanency to
contracting, the other direction has its
own hurdles. Employers can be concerned
that a contractor-turned-permanent will
leave if the market for his or her skills
picks up, and the burden is on the appli-
cant to prove a desire for stability.
IT professionals in contracting should
want to be IT contractors in the fullness of
the role. This involves not just an apprecia-
tion of the benefits, but a heightened
awareness of the disadvantages.
Follow @cityamcareers on Twitter for the lat-
est news from CityAMCareers.com
CITYAMCAREERS.com
Scan here to go to
CITYAMCAREERS.com
500
jobs in IT
2,250
150
100
300
jobs
companies
represented
developer roles
jobs in investment
banking
Over
marketing roles
Over
500
Over
More than
Over
T
HIS week, two years after
President Barack Obama
signed his US health reforms,
known as Obamacare, into
law, the central tenet of the
legislation, whether the federal
government can compel uninsured
individuals to purchase private
health insurance, came before the
Supreme Court.
The administration claims that the
so-called individual mandate is
legal under terms of the constitu-
tions commerce clause, which
empowers Congress to regulate com-
merce among the several States.
Ever since the Court ruled against
the plaintiff in Wickard v. Filburn,
the federal government has taken an
elastic view of the commerce clause,
L
EN McCluskey, general secretary
of the Unite trade union,
positions himself as an arch-
enemy of the government. Of
the Bob Crow school of
diplomacy, McCluskey remains
convinced civil disobedience is
necessary to halt the coalitions deficit
reduction programme. And he seems
hell-bent on ruining the Olympic
Games with mass industrial action.
Now might seem a perfect time for
his union to flex its muscles by calling
a tanker driver strike. The
Conservative half of the coalition is in
free-fall in the polls, with Labour hav-
ing opened up a 10-point lead. An
unpopular budget and the Cam Dine
With Me scandal have brought into
question the governments compe-
tence. With petrol prices having been
most voters number one concern for
some time, and the chancellor decid-
ing not to cancel the 3p fuel rise in last
weeks Budget, David Cameron must
be worried about the prospect of
angry motorists queuing outside
petrol forecourts.
But McCluskey is wrong to have
cityam.com/forum
Hoyer claims that its
tanker drivers are on
average earning to the
tune of 45,000 a year
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
24
THE WHITE
HOUSE RACE
EWAN WATT
The jurys out on whether Obamas health bill is too bitter a pill to swallow
RYAN BOURNE
Unite scored an own goal with the
tanker strike but so has Cameron
grabbed the low-hanging fruit. Bob
Crows RMT has shown that while
action affecting transport is popular
with your members, it is reviled by the
public. In tough times, motorists are
even less likely to be sympathetic
about being inconvenienced than the
long-suffering London commuter.
Widespread support for action only
comes when theres a clear grievance,
and the stated reason for the dispute
health and safety concerns is unlike-
ly to obtain much sympathy. Many of
the biggest employers are naturally
dismayed. Hoyer claims its drivers are,
on average, remunerated to the tune
of 45,000 per year meaning over
half are higher-rate taxpayers. They
work 37 hours per week, have premi-
um overtime arrangements and a
decent pension. Those employed on
the Shell contract have seen a 40.3 per
cent increase in earnings since 2003.
Unsurprisingly, the company conclud-
ed Unites decision to leave the negoti-
ating table (around which six large
companies were discussing minimum
standards) was an attempt to wrest
control of the industrial agenda.
Theres a big difference between this
strike and the popular protests faced
by Blair in 2000. Then the strikers won
public support mainly because they
were campaigning on what was per-
ceived to be a common cause against
soaring fuel costs. Now, the demands
are unlikely to resonate.
This means there is little the govern-
ment needs to do except remain
competent. It made a decent start,
with the inevitable condemnation fol-
lowed by the predictable these strikes
are wrong in difficult economic
times and both sides need to get
around the negotiating table-style
platitudes. There was the call to dis-
cuss contingency plans with delivery
companies and supermarkets, and
bringing Acas to the party. But since
then, Francis Maude and the Prime
Minister have decided to risk inducing
mayhem by suggesting consumers
should panic buy fuel. OK, not panic
buy. But top up if you can, said the
PM. Maude even suggested storing
maybe a little bit in the garagein a
jerrycan. Given unions have to give
seven days notice for a strike, during
which time it may well be resolved,
the timing of these statements is
incredible. The consequence has been
images and stories that a competent
government would seek to avoid.
Yesterday afternoon, Simon Lane told
the BBC his local garage in Groby,
Leicester ran out of diesel and unlead-
ed petrol after panic buying involv-
ing huge queues.
Theres little need for political panic.
For the reasons outlined, this seems
unlikely to be a popular strike and will
probably be quickly forgotten. If the
Conservatives are prudent, they will
remain calm and allow the public to
make the Unite-Labour link itself.
In terms of longer-term strategy,
however, this should serve as a warn-
ing. Taxes and duties account for 60
per cent of the price of unleaded
petrol and 58 per cent for diesel the
highest percentages in the European
Union. While changing policy accord-
ing to protest would weaken any gov-
ernment, the coalition would be
vulnerable to a wide coalition if the
strike were based on the cost of fuel
rather than technical health and safe-
ty issues. If the strike brings anything
to the attention of the political class, it
should be the plight of motorists.
Policies for that constituency could be
a huge electoral winner in 2015.
Ryan Bourne is head of economic research
for the Centre for Policy Studies.
interpreting it to cover any activities
that substantially affect interstate
commerce. In the case of Roscoe
Filburn, the Ohio farmer exceeded
wheat quotas and was found to have
violated interstate commerce even
though he was growing the wheat
for personal consumption. This
precedent was maintained in
Gonzales v. Raich, where the Court
criminalised home-grown medical
marijuana.
The administration is now invoking
the commerce clause to deal with
the uninsured who receive free med-
ical treatment but ultimately shift
the cost burden to the insured. The
Presidents healthcare bill forces indi-
viduals to purchase insurance, pro-
viding subsidies for those in need of
economic assistance. Those who
dont pay will be fined. The adminis-
tration is pushing the unprecedented
argument that it can regulate inac-
tivity, drawing scorn from the swing
vote Justice Anthony Kennedy and
the more conservative justices on the
court, with Chief Justice John
Roberts enquiring whether the feder-
al government could implement an
individual mandate requiring you
to buy a cell phone.
An alternative for the administra-
tion is to defend the mandate on the
grounds that Congress has the power
to collect taxes to provide for the
general welfare of the United States.
Given that the bill fails to describe
the mandate as a tax, this only exac-
erbates concerns about the adminis-
trations consistency. Its also a major
political problem. In 2009 the
President emphasised that his
reforms were absolutely not a tax
increase. In addition, given that
Obama campaigned in 2008 on a
firm pledge to never implement
any form of tax increase on individ-
uals earning less than $250,000, such
an argument may well imperil his re-
election bid. With a final ruling from
the Court expected in late June, the
President will receive a painful
reminder on the campaign trail of
his most costly political endeavour.
Alternatively, if the Court finds the
mandate unconstitutional, the rul-
ing could help to revitalise the
Presidents base with a message of
unfinished business. Republicans are
aware that Mitt Romney, who sup-
ported a mandate when governor,
may not be the best messenger. But
thats not the point. All they are look-
ing for is confirmation that the fed-
eral government is still one of
enumerated powers.
Ewan Watt is a Washington DC-based
consultant. You can follow him on
@ewancwatt
25
Insufficient appeal
[Re: Taxpayers must not be forced to pay,
Tuesday]
Surely if a party appealed to a sufficient
number of people, they would happily
donate funds for the party to use.
Insufficient appeal leads to insufficient
funds. If there was cash at the end, maybe
politicians would be more likely to respond
to consumer demand.
JohnPaterson
[Re: Coalition plans fails to shake-up UKs
antiquated planning rules, yesterday]
You make very good points. The report was
something of a damp squib and I really
dont think the system will be any better
today than before.
Christopher Wright
Greased palms
[Re: Its not just the wealthy who should be
kept from influencing politicians, yesterday]
Jamie Whyte makes an interesting point
about the self-interest of most voters under
a progressive tax system, and politicians
willingness to do favours in return. But what
are these strict constitutional limits on
politicians he advocates? Are they even
necessary? There are many examples of
policies that are in the self-interest of many
voters, which are completely ignored by
politicians and the cause of great
indifference among most people, Europe for
one. Whyte attributes too much rational
awareness to both politicians and voters.
We need self-interested millionaires to
focus politicians minds with money.
Jennifer Bowden
The Forum is open for you to take part. Got a sharp comment
on one of todays columns or rapid response topics? Do you
have another subject relating to business and the economy you
want to share your opinion on? We want to hear your views.
H
OW many houses in
Canada are painted red?
That question recently
greeted an applicant for an
advertising position at
Google. Crazy estimation questions
have become popular in many
industries, particularly as the job
market has tightened. Job seekers
are confronting posers like: How
many surgeons are there in
Britain? How many people are
talking on their mobile phone
right now? How many rubbish
collectors are there in France?
Such questions are part of a general
trend toward tougher, more
invasive job interviews. Instead of
merely asking a job candidate to
say what he or she can do,
interviewers are demanding that
the candidate demonstrate skills in
the interview. The rules are
disarmingly simple: the
interviewee is expected to use
mental maths to come up with a
specific figure no paper, much
less a computer, allowed.
Does it make sense for employers to
ask these questions? They cite the
job market: with so many qualified
applicants for each open position,
they need ways to winnow the
field. Interviewers also complain
that many applicants, even those
with brilliant education or
resumes, often have a problem
applying what they know to the
real world. While these estimation
questions are sometimes
intentionally bizarre, they parallel
the sort of estimates common in
the business world. The
businessperson confronts a
constant stream of opportunities:
to open a new store or a new
market; to develop a novel product
or pull the plug on an
underperforming line of business.
Its necessary to have a quick way of
TOP TWEETS
The price of everything, the value of
nothing. Many of us dont want new towns
full of Tescos and tiny houses
@TheDukeofBork
New garden cities stuffed with facilities can
happen now. Just try and find a developer
willing to pay for the links and facilities.
@LichfieldWolf
Jamie Whyte at it again in @cityamforum:
democracy is 100 years of wasteful
spending. Neo(lithi)conomics.
@ealexhudson
Cornwall must establish itself as a tax haven,
or pasty lovers will flee to Switzerland
@JonnyGoff
Is Mervyn King wrong to say the Diamond
Jubilee will be bad for Britains economy?
YES
The argument that Britain cant afford the downturn that, it is
alleged, will result from the Diamond Jubilee is beyond parody. The
event, which now has more momentum behind it than the obscenely
expensive (and heavily publicly funded) Olympics, is historically
unique, and will unite people in the biggest public celebration for
two generations. The knock-on effect in raising national morale will
be incalculable and, as with last years royal wedding, brand
Britain will be at the centre of the world's attention, which must be
good for long-term business and the national image. Sir Mervyn King
might ponder Oscar Wilde's quote: A cynic is one who knows the
price of everything and the value of nothing. Over sixty years, the
Queens value as national figurehead and Britains chief ambassador
abroad has been immense good for political relationships, but also
for the business that flows from these relationships.
Peter Whittle is director of the New Culture Forum.
Peter Whittle
NO
Peter Tatchell
Whatever you think of the monarchy, the millions being spent on
the Queens Diamond Jubilee is an extravagance too far. Britain is
broke. We cant afford it. There is a huge deficit; plus vast job
losses and cuts in health, education and other public services. The
extra Bank Holiday will hit economic output at a time when we
need all the output we can get. In addition, while I have no
personal animosity towards the Queen, I find it curious that our
democracy celebrates an unelected head of state who inherited the
position as a result of being born into a privileged aristocratic
family, rather than by election based on merit and virtue. Monarchy
is not compatible with democracy. It is a relic of feudalism. I wont
be celebrating. I still dream of a head of state who is elected by the
people and accountable to them like the Irish president: elected,
low-cost, modest and purely ceremonial.
Peter Tatchell is a human rights campaigner.
RAPIDresponses
How to prove you
are smart enough
to work at Google
distinguishing the ideas worthy of
further study from those that can
be ruled out immediately. The
smart entrepreneur has the knack
of making quick offhand
calculations of market size, costs,
and profit.
Heres how to handle how many
houses in Canada are painted red?
The first test is whether you have
some demographic facts at your fin-
gertips. The population of Canada is
around 30m. If you dont know that,
at least be able to make a guess that
isnt totally ridiculous.
There are usually several people to
a household. Lets say three on
average to keep it easy. Divide 30m
by three to get 10m housing units.
Not all of these are houses. Lets say
half are houses and half are
apartments. Thats 5m houses.
How many are painted red? Not
many. A door might be painted red,
but its pretty unusual to have a
whole house painted red. At a
rough guess, only one in a hundred
houses might be red. Divide 5m
into 100 to get the answer: 50,000
red houses in Canada.
Any interviewer would be pleased
with this answer. The interviewers
who ask these kinds of questions
dont know the correct answer.
They just want to see your thought
process. Make sure its logical and
grounded in a few real-world facts,
and youll do fine.
Are You Smart Enough to Work at
Google by William Poundstone is
published by Oneworld, priced 12.99.
WILLIAM POUNDSTONE
Printed by Newsfax International, BeamReach 5 Business Park, Marsh Way, Rainham, Essex, RM13 8RS
Distribution helpline
If you have any comments about the
distribution of City A.M.
please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow
Business Features Editor Marc Sidwell | Lifestyle Editor Zoe Strimpel | Sports Editor Frank Dalleres | Art Director Gavin Billenness
Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen
4th Floor, 33 Queen Street,
London, EC4R 1BR
Tel: 020 3201 8900
Fax: 020 7248 2711
Email: news@cityam.com
Editorial Statement: This newspaper adheres to the systemof self-regulation overseen by the Press Complaints Commission. The PCCtakes complaints about the editorial content of publications under the Editors Code of Practice, a copy of which can be foundat www.pcc.org.uk
26
DIRECTOR UK ENTERPRISE, CISCO
IF A COMPANY DOES NOT
CURRENTLY USE VIDEO, IS THIS
A TREND THEY CAN IGNORE?
Over 4bn YouTube videos are viewed every
day, and 60 hours of video are uploaded to
YouTube every minute. So even if customers
are not deploying video for business use,
that doesnt mean their employees are not
flooding their network with video traffic.
Also, even if a company does not currently
use video as a business tool, customers typi-
cally build networks for three to five years.
Consider that three years ago, none of us
had heard of an iPad, whereas in the fourth
quarter of 2011, Apple sold more iPads than
Hewlett Packard sold PCs. So its important
to build a network that can support future
predictions, including the prevalent use of
video.
WHAT DOES A COMPANY
DEPLOYING VIDEO NEED TO
CONSIDER ON THE NETWORK?
Its not just a case of having sufficient band-
width. Previous networks have been able to
prioritise video over voice and data, but with
Gartners prediction that video will be 90 per
cent of all internet traffic by 2015, we need to
do more than prioritise video over voice and
data. We need to be able to prioritise some
video over other video. For example, a com-
pany may decide to prioritise business-rele-
vant video-conferencing over social video, or
it may decide to prioritise video traffic of some
employees based on their rank or job function.
Networks today do have this ability and thus
guarantee not just that video can be used, but
that business-critical video is prioritised.
TIM SKINNER
BUSINESSTECHNOLOGY
WHAT NEW WAYS DO YOU EXPECT
US TO BE USING VIDEO OVER THE
NEXT TWO TO FIVE YEARS?
We have already seen a massive growth in
the amount of video being used in a busi-
ness-to-business capacity with video con-
ferencing and telepresence. Likewise,
consumer and social video has exploded
thanks to applications like Skype and
Facetime. But what is still to come is the
use of video in a consumer-to-business
capacity using video to purchase goods
from an online store for example, or meet-
ing with medical experts and travel agents
over video rather than in person, and hav-
ing a video call with customer services
teams. We believe the use of video for
ecommerce in this way will become preva-
lent in the next couple of years.
The new networking sky is flled with all kinds of clouds. Big ones.
Small ones. Public. Private. Even hybrid. Your people, partners,
citizens and customers must move swiftly and securely between
many clouds. Not just one. Thats why Cisco Data Center and
Cloud services ensure the same agility, efciency and security as
the rest of the Cisco architecture. So your data, your relationships and
your business can remain protected at every level. And you can focus
on taking your business to new heights through innovative growth.
Learn how businesses in every industry are entrusting their data with
Cisco Data Center and Cloud services in the physical workplace,
and the virtual one, at www.cisco.co.uk/ucs
In the past year,
67% more
companies
moved to cloud.
(But not just to one.)
Employees and customers are
primed for video: Be prepared
1
2
3
Video conferencing:
I
N all aspects of business,
employees are increasingly
demanding greater freedom of
choice as to how and where they
work. And giving employees this
freedom of choice makes sense for a
business if work can be carried out
from any number of locations your
company can be more efficient with
lower overheads and so be more
competitive. Figures suggest that
extending unified communications
and collaboration across an
organisation can deliver up to two
hours extra of productive work from
employees every day. And as the take-
up of video conferencing technology
increases, it will need to be able to
respond to these demands. According
to a recent Cisco Connected World
Technology report, by 2015 200m
workers globally will take advantage of
company-supplied video conferencing
at their desktops.
RESPONDING TO THE DEMAND
In order to provide this flexibility in the
workplace, IT systems managers need
to be able to provide a secure platform
that can handle a broad range of tools
whether meetings are taking place in
dedicated video conferencing rooms or
over a combination of PCs, Macs, tablets
or smartphones. Today, video can be
delivered in the office or from a park
bench. For this to be possible, there
needs to be a seamless transition from
office environment to mobile device,
with a consistent user experience
including recording, transcribing, tag-
ging and the functionality that would
be expected in a modern teleconferenc-
ing suite.
VISUAL CHALLENGES
Interestingly, there is a difference in
attitudes towards video communica-
tion in the US and in the UK. According
to a survey last month by IBOPE Zogby
International, when it comes to weekly
meetings and regular project meetings,
Telepresence has undergone a revolution
and firms must adapt, writes Craig Drake
the majority of business professionals
in the US (60 per cent) would prefer not
to be on camera for others to see. UK
business professionals display slightly
different attitudes towards video con-
ferencing, with most favouring this
type of technology for regular project
meetings. However, this still leaves a
large minority (43 per cent) who prefer
not to be on camera for others to see in
this situation. Business professionals in
both countries are much more likely
87 per cent in the US and 86 per cent in
the UK to agree that it is helpful to
communicate via video in special situa-
tions such as interviewing or training.
But why does there remain some reti-
cence in the uptake of video communi-
cation technology? For one, users still
have in their heads the early days of
video conferencing lagging images
and dropped calls and the feeling of
talking at a television screen.
Technology has advanced leaps and
bounds since then, but to harness these
developments, IT managers need to
consider the mobile, visual, social and
virtual requirements for users. Visually,
you want your video to be rendered to
the same quality for all the users on the
system both internally and with exter-
nal clients. But the proprietary codecs
of apps dont always play ball with
other equipment. As a result, you need
a standards-based, HD video system
available everywhere, whether accessed
on a smart phone, laptop, tablet PC or
in the conference room. The same
applies for desktop virtualisation and
collaboration of documents. A PC envi-
ronment can allow adequate data
access for business apps for those wish-
ing to share across an office network,
but does not allow for rich video apps
or connection from a mobile environ-
ment. But by implementing an inte-
grated unified communications system
over a virtual desktop integration link
(VXI) with optional mobility, this prob-
lem can be overcome. With advances in
HD video conferencing, of telepresence
and of collaboration technology, we
have moved on from the old feeling of
talking at a computer monitor in the
boardroom. The technology is available
to have a truly interactive video confer-
encing experience, with the feeling
that the other users are sat in the same
room as you. Files can be shared seam-
lessly and presentations can be viewed
with equal ease across boardroom pro-
jectors, desktop PCs and tablet comput-
ers. But while this technology is
available, the onus is on IT managers to
adopt the systems and create an infra-
structure that caters to the demands of
the modern business.
With state of the art video conferencing
Prioritise the video that matters to you
27
2
0
1
1

C
is
c
o

S
y
s
t
e
m
s
,

In
c
.

A
ll
r
ig
h
t
s

r
e
s
e
r
v
e
d
.

Beyond the office
One of the biggest challenges of video
conferencing is that, because of so many
early launches, people can have a
misconception of video conferencing as
being crackly and poor quality. But video
communication has now come of age, not
just with the HD picture but also the sound.
With stereo audio and HD video it now
really is like the other users are in the same
room as you.
We have over 1,200 suites with a dedicated
MPLS network and demand is growing.
The future of video communication is not
about one fixed place to one fixed place, but
about multiple people in multiple places.
Much as employees demand to be able to
have options in the workplace for how they
work and where, the same applies to
communication. It is necessary to provide
them with options of where, when and how
they connect with video communication
from HD telepresence studios to connecting
over a smartphone. We have over 1m
customers who use our offices and only 25
per cent of them use an office 9-5. The rest
are mobile at various locations and their
video communications needs continue to
reflect this.
Regus is a worldwide network of flexible offices,
meeting rooms and workspaces.
technology, it can feel like everybody is sat in the same room
CASE STUDY REGUS ANTHONY BROWN, GLOBAL DIRECTOR
The future of video:
From the boardroom
onto the high street
T
HE current demands for
video conferencing and
communication technology
in the office and the
boardroom are clear.
Businesses need a cohesive,
mobile and robust system capable
of responding to their needs for
communication on a global scale
whether in a video conferencing
suite or communicating via an
iPad camera. But where are we
going to see advances in video
technology in other areas?
We predict a future rise in the
use of video conferencing in
healthcare and legal services and
we could increasingly see it on the
high street in the next few years,
says Chris Argent, financial servic-
es consultant at ICT consultancy
Hudson & Yorke. As consumers are
used to socialising, banking and
shopping in a virtual way, many
would be happy to discuss and buy
financial products and other serv-
ices from a video agent.
As home computing technology
increases and with superfast broad-
band speeds on the horizon, the
potential is there for businesses to
embrace customer-facing video
technology. Rather than just inter-
nal, employee-focused video sys-
tems and infrastructures,
businesses can use video to reach
out to potential customers. The
main stumbling block to the
uptake of this approach may well
be cultural, at least at first but
the companies that successfully
encourage business-client video
interaction will have the edge on
their competitors.
COST BENEFITS
The future of video technology
will also be driven by the continu-
ing financial squeeze and by the
evident advantages for businesses
of having employees work remote-
ly. As office rental increases and
as companies feel the pinch, the
draw of truly mobile video com-
munication technology will be
clear to businesses. Rather than
being tied to an office space,
employees can work on the move
and from home. Not only is
expensive office space saved, but
the increased productivity will
help the successful adopters of
technology to profit.
Craig Drake
Video will become an interactive experience
cityam.com
28
MARKETS
cityam.com
LON GD ONCE FIX AM ..................................1677.00 -17.00
SILVERLDN FIX AM.........................................32.23 -0.48
MAPLE LEAF 1 OZ............................................34.65 0.51
LON PLATINUM AM.....................................1640.00 -21.00
LON PALLADIUM AM.....................................654.00 -15.00
ALUMINIUM CASH.......................................2132.50 -4.00
COPPER CASH.............................................8510.00 30.00
LEAD CASH.................................................1995.00 14.00
NICKEL CASH.............................................18025.00 -160.00
TIN CASH..................................................22450.00 100.00
ZINC CASH..................................................2014.00 150.50
BRENT SPOT INDEX .......................................125.66 0.16
SOYA............................................................1369.75 -9.75
COCOA........................................................2356.00 25.00
COFFEE...........................................................187.35 8.55
KRUG ..........................................................1736.40 -13.20
WHEAT..........................................................172.62 1.80
AIR LIQUIDE......................................................98.76 -0.34 101.00 80.90
ALLIANZ ............................................................91.37 -1.11 107.45 56.16
ANHEUS-BUSCHINBEV....................................54.30 -0.42 55.61 33.85
ARCELORMITTAL.................................................14.18 -0.51 26.40 10.47
AXA...................................................................12.66 -0.18 15.97 7.88
BANCO SANTANDER ...........................................5.79 -0.11 8.36 4.94
BASF SE............................................................65.98 -1.22 70.22 42.19
BAYER...............................................................52.88 -0.87 59.44 35.36
BBVA ..................................................................5.93 -0.13 8.79 4.94
BMW.................................................................67.22 -1.23 73.95 43.49
BNP PARIBAS...................................................36.90 -0.49 55.44 22.72
CARREFOUR........................................................18.11 -0.22 28.39 14.66
CRH PLC.............................................................15.39 -0.30 17.03 10.28
DAIMLER...........................................................45.78 -1.01 53.95 29.02
DANONE ...........................................................52.29 0.21 53.46 41.92
DEUTSCHE BANK ..............................................38.29 -0.36 44.56 20.79
DEUTSCHE BOERSE...........................................50.70 -0.07 57.68 35.65
DEUTSCHE TELEKOM............................................9.13 -0.11 11.38 7.88
E.ON...................................................................18.12 -0.17 23.54 12.50
ENEL ...................................................................2.79 -0.02 4.86 2.76
ENI.....................................................................17.68 -0.11 18.72 11.83
FRANCE TELECOM...............................................11.25 -0.11 15.98 10.92
GDF SUEZ ..........................................................19.45 -0.16 28.98 17.65
GENERALI ASS....................................................12.21 -0.03 16.44 10.34
IBERDROLA.........................................................4.23 -0.09 5.95 4.16
INDITEX.............................................................72.07 0.16 73.36 52.20
ING GROEP CVA ..................................................6.57 -0.16 9.50 4.21
INTESA SANPAOLO...............................................1.43 -0.01 2.18 0.85
KON.PHILIPS ELECTR..........................................15.39 -0.15 23.01 12.01
L'OREAL............................................................89.08 -0.29 91.24 68.83
LVMH...............................................................129.95 -0.35 136.80 94.16
MUNICHRE ......................................................115.80 -1.15 118.35 77.80
NOKIA.................................................................4.14 0.14 6.36 3.33
REPSOL YPF .......................................................18.31 -0.66 24.90 17.31
RWE...................................................................36.11 -0.32 47.29 21.15
SAINT-GOBAIN .................................................34.05 -1.12 47.64 26.07
SANOFI .............................................................58.06 -0.09 59.56 42.85
SAP...................................................................52.86 -0.23 54.85 32.88
SCHNEIDER ELECTRIC........................................49.48 -1.39 61.83 35.00
SIEMENS...........................................................75.99 -0.88 99.39 62.13
SOCIETE GENERALE...........................................22.87 -0.68 49.02 14.32
TELECOM ITALIA..................................................0.92 0.02 1.10 0.70
TELEFONICA.......................................................12.30 -0.18 18.34 12.30
TOTAL................................................................38.02 -0.54 43.73 29.40
UNIBAIL-RODAMCO SE ....................................149.65 -2.85 162.95 123.30
UNICREDIT..........................................................3.99 0.02 12.44 2.20
UNILEVER CVA ..................................................25.32 -0.23 27.16 20.96
VINCI .................................................................38.91 -0.65 45.48 28.46
VIVENDI.............................................................13.82 -0.14 21.37 13.54
VOLKSWAGEN VORZ........................................132.90 -1.25 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100. . . . . . . . . . . . . . . . . . . . . 5808.99 -60.56 -1.03
FTSE 250 INDEX . . . . . . . . . . . . . . . 11589.71 -120.99 -1.03
FTSE UK ALL SHARE . . . . . . . . . . . . 3022.38 -30.82 -1.01
FTSE AIM ALL SH . . . . . . . . . . . . . . . 796.90 -6.57 -0.82
DOWJONES INDUS 30 . . . . . . . . . . 13126.21 -71.52 -0.54
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1405.54 -6.98 -0.49
NASDAQ COMPOSITE. . . . . . . . . . . . 3104.96 -15.39 -0.49
FTSEUROFIRST 300 . . . . . . . . . . . . . 1072.48 -11.06 -1.02
NIKKEI 225 . . . . . . . . . . . . . . . . . . . 10182.57 -72.58 -0.71
DAX 30 PERFORMANCE . . . . . . . . . 6998.80 -80.10 -1.13
CAC 40. . . . . . . . . . . . . . . . . . . . . . . 3430.15 -39.44 -1.14
SHANGHAI SE INDEX . . . . . . . . . . . 2284.88 -62.30 -2.65
HANG SENG . . . . . . . . . . . . . . . . . 20885.42 -161.49 -0.77
S&P/ASX 20 INDEX. . . . . . . . . . . . . 2582.60 27.30 1.07
ASX ALL ORDINARIES . . . . . . . . . . . 4431.50 39.90 0.91
BOVESPA SAO PAOLO . . . . . . . . . . 64957.85 -1079.50 -1.63
ISEQ OVERALL INDEX . . . . . . . . . . . 3286.20 7.57 0.23
STRAITS TIMES . . . . . . . . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . . . . . . . 804.74 -15.60 -1.90
SWISS MARKET INDEX . . . . . . . . . . 6250.43 -18.95 -0.30
Price Chg %chg
3M....................................................................88.45 -0.69 98.19 68.63
ABBOTT LABS.....................................................61.12 -0.21 61.49 46.29
ALCOA ................................................................9.83 -0.23 18.47 8.45
ALTRIA GROUP.................................................30.52 -0.09 30.91 23.20
AMAZON.COM..................................................201.16 -4.28 246.71 166.97
AMERICAN EXPRESS ........................................59.06 0.84 59.26 41.30
APPLE..............................................................617.62 3.14 621.45 310.50
AT&T..................................................................31.36 -0.28 31.97 27.29
BANK OF AMERICA.............................................9.75 0.15 13.88 4.92
BERKSHIRE HATAW B........................................81.78 0.02 85.51 65.35
BOEING CO........................................................74.33 -0.48 80.65 56.01
CATERPILLAR..................................................104.26 -3.80 116.95 67.54
CHEVRON........................................................105.89 -1.15 112.28 86.68
CISCO SYSTEMS.................................................21.08 0.17 21.11 13.30
CITIGROUP........................................................37.06 0.28 46.90 21.40
COCA-COLA.......................................................72.66 0.79 72.83 63.34
COMCAST CLASS A............................................29.92 -0.25 30.41 19.19
CONOCOPHILLIPS..............................................75.98 -0.86 81.80 58.65
DU PONT(EI) DE NMR.......................................52.95 -0.37 57.50 37.10
EMC CORP.........................................................29.55 0.00 30.00 19.84
EXXON MOBIL...................................................85.86 -0.76 88.13 63.47
GENERAL ELECTRIC...........................................20.01 -0.03 21.00 14.02
GOLDMAN SACHS GRP....................................126.36 0.03 164.40 84.27
GOOGLE A.......................................................655.76 8.74 670.25 473.02
HEWLETT PACKARD..........................................23.58 -0.04 43.28 19.92
HOME DEPOT ....................................................49.91 -0.13 50.35 28.13
IBM.................................................................207.29 0.11 208.69 157.13
INTEL CORP.......................................................27.80 -0.39 28.28 19.16
J.P.MORGAN CHASE..........................................46.27 0.38 47.80 27.85
JOHNSON & JOHNSON.....................................65.62 0.22 68.05 55.76
KRAFT FOODS A ................................................37.97 -0.39 39.06 24.30
MC DONALD'S CORP..........................................97.08 -0.26 102.22 74.76
MERCK AND CO. NEW........................................38.31 -0.49 39.43 29.47
MICROSOFT .......................................................32.19 -0.33 32.95 23.65
OCCID. PETROLEUM..........................................94.85 -3.56 117.89 66.36
ORACLE CORP...................................................29.36 0.01 36.50 24.72
PEPSICO ...........................................................65.93 -0.08 71.89 58.50
PFIZER ..............................................................22.41 -0.09 22.80 16.63
PHILIP MORRIS INTL .........................................86.97 -0.55 88.51 60.45
PROCTER AND GAMBLE.....................................67.19 0.04 67.95 56.57
QUALCOMM INC.................................................68.12 -0.37 68.87 45.98
SCHLUMBERGER...............................................69.78 -0.18 95.53 54.79
TRAVELERS CIES ...............................................58.77 0.29 64.17 45.97
UNITED TECHNOLOGIE.......................................81.52 -1.59 91.83 66.87
US BANCORP DELAWRE....................................31.82 0.13 32.23 20.10
VERIZON COMMS..............................................38.26 -0.40 40.48 32.28
VISA CL A.........................................................119.35 -0.46 120.70 71.75
WAL-MART STORES ...........................................61.19 0.10 62.63 48.31
WALT DISNEY CO...............................................43.51 -0.64 44.50 28.19
WELLS FARGO & CO..........................................34.47 0.47 34.59 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight.........................................0.500 0.00
BoE IR 7 days..............................................0.500 0.00
BoE IR 1 month...........................................0.500 0.00
BoE IR 3 months.........................................0.500 0.00
BoE IR 6 months ........................................0.500 0.00
LIBOR Euro - overnight................................0.262 0.00
LIBOR Euro - 12 months................................1.392 0.00
LIBOR USD - overnight .................................0.153 0.00
LIBOR USD - 12 months ................................1.048 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate.............................................1.500 0.00
Finance house base rate..............................1.500 0.00
US Fed funds ...............................................0.250 0.00
US long bond yield......................................3.290 -0.02
European repo rate ......................................0.138 0.00
Euro Euribor ................................................0.320 0.00
The vix index................................................16.79 1.20
The baltic dry index .....................................917.0 5.00
Markit iBoxx ...............................................241.08 0.30
Markit iTraxx................................................116.55 -0.34
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .301.0 -2.7 340.8 248.1
Chemring Group . . . . . .405.3 -9.1 712.0 368.8
Cobham . . . . . . . . . . . . .223.5 -1.0 236.5 165.9
Meggitt . . . . . . . . . . . . .398.0 -1.2 408.3 304.9
QinetiQ Group . . . . . . . .149.6 0.0 153.2 101.5
Rolls-Royce Holdi . . . . .824.0 -0.5 842.5 557.5
Senior . . . . . . . . . . . . . .195.0 -2.4 201.0 135.6
Ultra Electronics . . . . . .1727.0 -14.0 1779.0 1305.0
GKN . . . . . . . . . . . . . . . . .207.1 -4.5 245.0 157.0
Barclays . . . . . . . . . . . . .245.6 -5.8 308.9 138.9
HSBC Holdings . . . . . . . .561.4 -3.1 667.2 463.5
Lloyds Banking Gr . . . . .34.4 -0.4 62.4 21.8
Royal Bank of Sco . . . . . .28.6 -0.1 44.4 17.3
Standard Chartere . . . .1580.5 -28.0 1690.0 1169.5
AG Barr . . . . . . . . . . . .1230.0 -3.0 1395.0 1031.0
Britvic . . . . . . . . . . . . . .390.0 -4.5 444.0 289.9
Diageo . . . . . . . . . . . . .1527.0 -4.0 1553.0 1112.0
SABMiller . . . . . . . . . . .2538.0 -30.5 2660.0 1979.0
AZ Electronic Mat . . . . .296.0 -6.5 338.1 206.1
Croda Internation . . . .2115.0 -10.0 2238.0 1597.0
Elementis . . . . . . . . . . . .185.1 -4.4 196.1 107.5
Johnson Matthey . . . .2292.0 -48.0 2403.0 1523.0
Victrex . . . . . . . . . . . . .1335.0 -20.0 1590.0 1025.0
Yule Catto & Co . . . . . . .246.3 -2.8 253.0 148.0
/$ 1.3310 0.0009
/ 0.8388 0.0037
/ 110.16 0.6454
/ 1.1922 0.0053
/$ 1.5867 0.0080
/ 131.34 1.3413
FTSE 100
5808.99
60.56
FTSE 250
11589.71
120.99
FTSE ALL SHARE
3022.38
30.82
DOW
13126.21
71.52
NASDAQ
3104.96
15.39
S&P500
1405.54
6.98
Brown (N.) Group . . . . .238.2 -7.8 304.5 227.0
Carpetright . . . . . . . . . .700.0 6.5 741.0 375.0
Debenhams . . . . . . . . . . .81.7 -1.0 83.0 51.2
Dignity . . . . . . . . . . . . . .814.0 -13.5 854.5 693.0
Dixons Retail . . . . . . . . .19.3 -0.4 19.9 9.4
DunelmGroup . . . . . . . .515.0 1.0 524.5 383.9
Halfords Group . . . . . . .307.5 -2.3 405.9 268.6
Home Retail Group . . . .113.6 -1.2 228.5 72.5
Inchcape . . . . . . . . . . . .385.1 -5.2 425.4 268.1
JD Sports Fashion . . . . .775.0 -12.0 1030.0 570.0
Kesa Electricals . . . . . . . .73.7 -0.7 151.4 60.2
Kingsher . . . . . . . . . . .309.8 -2.0 314.1 217.0
Marks & Spencer G . . . .384.2 -1.4 402.2 301.8
Next . . . . . . . . . . . . . .3009.0 12.0 3031.7 1980.0
Sports Direct Int . . . . . .282.2 -3.9 296.1 181.5
WHSmith . . . . . . . . . . .552.0 0.0 560.0 433.8
Smith & Nephew . . . . .633.5 2.5 715.0 521.0
Synergy Health . . . . . . .853.5 -6.5 981.0 809.5
Barratt Developme . . . .146.2 -5.3 151.6 67.5
Bellway . . . . . . . . . . . . .835.0 -4.0 859.5 540.5
Berkeley Group Ho . . .1328.0 -18.0 1414.0 1019.0
Bovis Homes Group . . .500.5 -9.5 518.5 326.5
Persimmon . . . . . . . . . .656.5 -5.0 706.5 374.0
Balfour Beatty . . . . . . . .297.4 -0.6 345.1 214.6
CRH . . . . . . . . . . . . . . .1290.0 -25.0 1672.5 1053.0
Galliford Try . . . . . . . . . .619.0 -9.0 633.4 368.0
Kier Group . . . . . . . . . .1168.0 -24.0 1489.0 1097.0
Drax Group . . . . . . . . . .524.5 -6.5 581.5 393.9
SSE . . . . . . . . . . . . . . . .1327.0 -18.0 1423.0 1193.0
Domino Printing S . . . .562.5 0.5 701.5 434.3
Halma . . . . . . . . . . . . . .386.7 -8.9 429.6 306.3
Laird . . . . . . . . . . . . . . . .217.6 3.5 218.0 127.9
Morgan Crucible C . . . . .324.7 -6.4 360.0 224.0
Oxford Instrument . . .1220.0 0.0 1262.0 700.0
Renishaw . . . . . . . . . . .1291.0 -48.0 1886.0 800.0
Spectris . . . . . . . . . . . . .1813.0 -22.0 1846.0 1039.0
Aberforth Smaller . . . .642.5 -7.5 714.0 494.0
Alliance Trust . . . . . . . .370.0 -1.8 392.7 310.2
Bankers Inv Trust . . . . .422.0 -3.4 433.8 346.5
BH Global Ltd. GB . . . . .1191.0 -3.0 1212.0 1058.0
BH Global Ltd. US . . . . . .12.0 0.0 12.2 10.4
BH Macro Ltd. EUR . . . . .20.0 0.0 20.2 16.3
BH Macro Ltd. GBP . . .2049.0 -20.0 2078.0 1671.0
BH Macro Ltd. USD . . . . . .19.7 0.2 20.2 16.2
BlackRock World M . . .669.0 -3.0 815.5 574.5
BlueCrest AllBlue . . . . . .162.1 -0.9 176.2 160.6
British Assets Tr . . . . . . .127.3 -1.9 139.4 109.0
British Empire Se . . . . .427.0 -4.7 533.0 404.0
Caledonia Investm . . .1508.0 -8.0 1800.0 1337.0
City of London In . . . . .296.7 -3.2 306.9 257.0
Dexion Absolute L . . . . .141.4 1.2 150.0 130.0
Edinburgh Dragon . . . .248.0 1.0 253.1 201.4
Edinburgh Inv Tru . . . .496.3 -5.2 504.0 422.5
Electra Private E . . . . .1740.0 6.0 1755.0 1287.0
Fidelity China Sp . . . . . .80.6 -1.2 114.3 70.0
Fidelity European . . . . .1141.0 5.0 1287.0 912.0
Foreign and Colon . . . . .316.5 -0.5 327.9 261.5
Herald Inv Trust . . . . . .523.0 -0.5 545.5 419.0
HICL Infrastructu . . . . . .119.5 0.1 121.3 112.7
John Laing Infras . . . . .106.5 0.0 110.6 103.8
JPMorgan American . . .957.0 -4.0 966.3 721.5
JPMorgan Asian In . . . . .193.7 -3.3 244.0 170.1
JPMorgan Emerging . .564.0 2.0 610.5 480.1
JPMorgan Indian I . . . .359.0 -3.5 459.0 313.1
JPMorgan Russian . . . .578.5 -2.5 741.0 415.1
LawDebenture Cor . . . .377.8 -11.0 398.7 323.0
Mercantile Invest . . . .1045.0 -14.0 1119.0 823.0
Merchants Trust . . . . . .384.5 -1.7 431.8 341.5
Monks Inv Trust . . . . . .332.0 -3.0 367.9 298.1
Murray Income Tru . . . .658.5 -6.5 674.0 568.0
Murray Internatio . . . .1001.0 -4.0 1011.6 818.5
NB Global Floatin . . . . . .99.2 -0.6 103.0 92.5
Perpetual Income . . . .267.9 -2.6 276.0 236.5
Personal Assets T . . .34420.0 -40.0 35350.030850.0
Polar Capital Tec . . . . . .402.3 0.3 404.0 299.5
RIT Capital Partn . . . . .1225.0 -2.0 1360.0 1173.0
Scottish Inv Trus . . . . . .490.9 -1.1 524.0 417.0
Scottish Mortgage . . . . .713.0 -6.0 781.0 565.0
SVG Capital . . . . . . . . . .290.0 5.3 295.5 165.1
Temple Bar Inv Tr . . . . .922.0 -11.0 970.0 791.0
Templeton Emergin . . .596.5 -0.5 684.5 497.0
TRProperty Inv T . . . . . .156.5 -1.4 206.1 136.2
TRProperty Inv T . . . . . .70.3 0.3 94.0 59.8
Witan Inv Trust . . . . . . .496.4 -3.6 533.0 401.5
3i Group . . . . . . . . . . . .204.0 -2.9 301.1 166.9
3i Infrastructure . . . . . . .123.5 -0.2 125.2 115.0
Aberdeen Asset Ma . . .256.8 -6.5 265.8 167.8
Ashmore Group . . . . . . .374.7 -5.3 420.0 306.4
Brewin Dolphin Ho . . . .169.4 0.9 176.5 113.7
Camellia . . . . . . . . . . .9575.0 -35.0 10950.0 8800.0
Charles Taylor Co . . . . . .146.0 2.0 160.5 115.6
City of London Gr . . . . . .67.0 0.0 93.6 61.3
City of London In . . . . .355.8 -6.5 440.0 304.3
Close Brothers Gr . . . . .790.0 -4.5 845.0 590.0
F&C Asset Managem . . . .67.5 -2.0 81.7 56.1
Hargreaves Lansdo . . . .487.0 -1.2 646.5 402.5
Helphire Group . . . . . . . . .1.9 -0.0 14.9 1.4
Henderson Group . . . . .126.8 1.0 173.1 95.1
Highway Capital . . . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . . . .394.6 -14.5 541.5 311.6
IG Group Holdings . . . .442.5 -8.5 502.5 393.6
Intermediate Capi . . . . .281.6 -3.2 345.0 197.9
International Per . . . . . .257.0 -4.6 388.8 148.5
International Pub . . . . . .119.3 -0.2 121.5 112.7
Investec . . . . . . . . . . . . .386.4 -5.7 522.0 318.4
IP Group . . . . . . . . . . . .120.0 0.0 121.0 36.0
Jupiter Fund Mana . . . . .238.1 -1.2 310.5 184.9
Liontrust Asset M . . . . . .121.0 4.5 122.0 57.9
LMS Capital . . . . . . . . . . .59.3 0.8 64.8 54.0
London Finance & . . . . .19.5 0.0 23.5 19.0
London Stock Exch . . .1015.0 -5.0 1076.0 756.5
Lonrho . . . . . . . . . . . . . . .12.0 0.3 19.8 8.9
Man Group . . . . . . . . . . .133.3 -1.9 259.6 104.5
Paragon Group Of . . . .182.9 -1.0 206.1 134.6
Provident Financi . . . . .1171.0 -10.0 1187.0 915.0
Rathbone Brothers . . .1278.0 2.0 1316.0 977.0
Record . . . . . . . . . . . . . . .11.5 0.1 35.5 10.5
RSM Tenon Group . . . . . . .8.4 -0.2 38.8 5.6
Schroders . . . . . . . . . . .1576.0 -66.0 1906.0 1183.0
Schroders (Non-Vo . . .1241.0 -40.0 1554.0 970.0
Tullett Prebon . . . . . . . .353.0 4.1 428.6 262.3
Walker Crips Grou . . . . .45.0 0.0 51.5 40.0
BT Group . . . . . . . . . . . .227.6 0.0 232.1 161.0
Cable & Wireless . . . . . .32.3 -0.2 48.9 31.3
Cable & Wireless . . . . . .34.0 -1.0 55.0 14.2
COLT Group SA . . . . . . . .105.7 1.0 154.0 84.1
KCOM Group . . . . . . . . . .69.8 0.8 84.0 58.5
TalkTalk Telecom . . . . .145.0 -4.1 150.0 118.9
TelecomPlus . . . . . . . .689.0 -6.5 802.0 452.3
Booker Group . . . . . . . . .84.1 0.2 85.0 59.5
Greggs . . . . . . . . . . . . . .514.0 -4.0 558.0 445.0
Morrison (Wm) Sup . . .303.1 -0.8 328.0 268.5
Ocado Group . . . . . . . . .116.9 -2.5 237.0 52.9
Sainsbury (J) . . . . . . . . .313.9 -1.7 362.8 263.5
Tesco . . . . . . . . . . . . . . .336.8 -1.7 420.1 310.5
Associated Britis . . . . .1219.0 2.0 1239.0 977.0
Cranswick . . . . . . . . . . .812.0 12.5 841.0 588.5
Dairy Crest Group . . . . .338.0 -3.7 409.7 311.0
Devro . . . . . . . . . . . . . .308.0 -7.2 332.2 232.0
Tate & Lyle . . . . . . . . . . .704.5 -3.0 720.5 544.5
Unilever . . . . . . . . . . .2053.0 -11.0 2189.0 1885.0
Mondi . . . . . . . . . . . . . .593.0 -16.5 664.0 413.5
Centrica . . . . . . . . . . . . .313.3 -3.9 333.0 278.8
International Pow . . . . .383.4 3.3 385.6 279.4
National Grid . . . . . . . . .631.0 0.0 659.0 569.0
Pennon Group . . . . . . . .712.0 2.5 737.5 620.0
Severn Trent . . . . . . . .1540.0 -9.0 1610.0 1375.0
United Utilities . . . . . . .602.5 -4.5 637.0 560.0
Cookson Group . . . . . . .697.0 -9.5 724.5 395.8
Rexam. . . . . . . . . . . . . .430.5 -0.9 436.0 299.8
RPC Group . . . . . . . . . . .381.0 -1.3 393.2 281.0
Smith (DS) . . . . . . . . . . .178.9 -1.4 183.7 113.3
Smiths Group . . . . . . .1033.0 -12.0 1340.0 869.5
Price Chg High Low
Reckitt Benckiser . . . .3522.0 -35.0 3602.0 3100.0
Redrow . . . . . . . . . . . . .129.0 -0.6 135.3 103.5
Taylor Wimpey . . . . . . . .52.4 -0.1 53.0 28.7
Bodycote . . . . . . . . . . . .388.8 -12.0 426.5 225.6
Fenner . . . . . . . . . . . . . .437.7 -12.9 483.7 280.0
IMI . . . . . . . . . . . . . . . . .969.0 -11.0 1119.0 636.5
Melrose . . . . . . . . . . . . .428.0 2.5 428.0 268.0
Northgate . . . . . . . . . . .215.8 0.8 346.7 190.9
Rotork . . . . . . . . . . . . .1975.0 -40.0 2099.0 1501.0
Spirax-Sarco Engi . . . .2072.0 -37.0 2184.0 1649.0
Weir Group . . . . . . . . .1753.0 -18.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .359.8 -21.0 460.5 315.0
Ferrexpo . . . . . . . . . . . .292.5 -7.6 499.0 238.7
Talvivaara Mining . . . . .241.4 -5.9 589.0 195.2
BBA Aviation . . . . . . . . .216.3 -1.0 223.4 156.0
Stobart Group Ltd . . . . .129.4 -2.9 152.8 112.0
Admiral Group . . . . . . .1161.0 -17.0 1754.0 787.0
Amlin . . . . . . . . . . . . . .336.9 -3.6 427.0 270.6
Beazley . . . . . . . . . . . . .143.0 -0.6 151.8 109.6
Catlin Group Ltd. . . . . . .418.0 -0.7 449.0 337.0
Hiscox Ltd. . . . . . . . . . . .396.1 -7.1 424.7 340.5
ITV . . . . . . . . . . . . . . . . . .87.4 -1.8 89.9 51.7
Johnston Press . . . . . . . . .6.5 -1.0 9.0 4.1
MecomGroup . . . . . . . .177.8 -1.8 310.0 134.5
Moneysupermarket. . . .126.7 -3.3 130.3 85.8
Pearson . . . . . . . . . . . .1200.0 -14.0 1255.0 1038.0
PerformGroup . . . . . . .308.0 -2.0 317.2 150.0
Reed Elsevier . . . . . . . .562.5 2.0 578.0 461.3
Rightmove . . . . . . . . .1446.0 6.0 1449.0 933.0
STV Group . . . . . . . . . . . .117.3 1.6 168.0 76.3
Tarsus Group . . . . . . . . .147.3 2.3 165.0 119.5
Trinity Mirror . . . . . . . . . .38.5 0.0 54.3 35.3
UBM . . . . . . . . . . . . . . . .627.0 -7.5 640.0 416.0
UTVMedia . . . . . . . . . . .151.0 0.3 153.3 92.5
Wilmington Group . . . . .97.8 0.5 157.0 78.5
WPP . . . . . . . . . . . . . . .862.5 -5.0 880.0 578.0
Yell Group . . . . . . . . . . . . .3.9 0.1 11.0 3.4
African Barrick G . . . . . .395.5 -15.7 616.5 389.3
Anglo American . . . . .2347.0 -95.0 3344.0 2138.5
Anglo Pacic Gro . . . . .329.0 -2.1 340.0 237.9
Antofagasta . . . . . . . . .1118.0 -64.0 1491.0 900.5
Aquarius Platinum . . . .146.2 -4.8 364.8 130.9
Avocet Mining . . . . . . . .186.1 -8.0 286.8 177.5
BHP Billiton . . . . . . . . .1885.0 -41.0 2631.5 1667.0
Bumi . . . . . . . . . . . . . . .659.0 -5.52 701.76 651.0
Centamin (DI) . . . . . . . . . .71.1 -7.3 154.2 69.9
Jardine Lloyd Tho . . . . .694.0 -1.0 764.5 576.0
Lancashire Holdin . . . . .793.5 6.0 798.0 597.5
RSA Insurance Gro . . . . .107.1 -8.7 139.8 99.6
Aviva . . . . . . . . . . . . . . .336.6 -9.2 452.7 275.3
Legal & General G . . . . .132.5 -1.9 135.0 89.8
Old Mutual . . . . . . . . . . .158.0 -3.1 164.6 98.1
Phoenix Group Hol . . . .560.5 -2.5 688.0 451.1
Prudential . . . . . . . . . . .768.5 -29.0 797.5 509.0
Resolution Ltd. . . . . . . .263.2 -5.0 316.1 229.5
St James's Place . . . . . .356.6 -13.6 376.0 294.0
Standard Life . . . . . . . . .231.0 -0.7 250.7 172.0
4Imprint Group . . . . . .299.0 2.0 302.7 200.0
Aegis Group . . . . . . . . . .181.3 -1.6 185.9 115.7
Bloomsbury Publis . . . .110.5 -1.5 138.0 91.3
British Sky Broad . . . . .673.0 -20.0 850.0 618.5
Centaur Media . . . . . . . .38.3 0.0 56.3 32.5
Chime Communicati . . .218.5 6.8 298.5 163.0
Creston . . . . . . . . . . . . . .59.0 0.5 121.0 47.0
Daily Mail and Ge . . . . .454.7 -6.8 505.5 343.4
Euromoney Institu . . . .779.0 -18.0 809.5 522.5
Future . . . . . . . . . . . . . . .13.0 0.4 26.5 8.3
Haynes Publishing . . . .210.0 -5.0 257.0 192.0
Huntsworth . . . . . . . . . .44.6 0.1 76.3 32.3
Informa . . . . . . . . . . . . .447.4 -1.0 451.5 313.9
ITE Group . . . . . . . . . . . .227.6 -5.4 258.0 157.7
Eurasian Natural . . . . .594.5 -24.5 973.5 522.0
Fresnillo . . . . . . . . . . . .1609.0 -69.0 2150.0 1302.0
GemDiamonds Ltd. . . .275.0 -11.5 310.6 179.8
Glencore Internat . . . . .389.3 -12.3 531.1 348.0
Hochschild Mining . . . .464.0 -24.0 646.0 365.9
Kazakhmys . . . . . . . . . .906.5 -38.0 1493.0 730.0
Kenmare Resources . . . .48.6 1.3 61.5 31.0
Lonmin . . . . . . . . . . . .1053.0 -39.0 1760.0 941.0
NewWorld Resourc . . .430.2 -18.7 1060.0 409.4
Petra Diamonds Lt . . . . .175.7 -12.5 189.0 97.0
Petropavlovsk . . . . . . . .621.0 1.0 1061.0 543.5
Polymetal Interna . . . .925.0 -11.5 1175.0 877.0
Randgold Resource . .5490.0 -135.0 7565.0 4567.0
Rio Tinto . . . . . . . . . . .3316.0 -70.5 4595.0 2712.5
Vedanta Resources . . .1232.0 -72.0 2518.0 928.0
Xstrata . . . . . . . . . . . . .1068.5 -37.5 1550.0 764.0
Inmarsat . . . . . . . . . . . .459.3 -0.7 628.5 389.3
Vodafone Group . . . . . .173.7 -0.4 182.7 155.1
Genesis Emerging . . . .505.0 7.0 548.5 424.0
Afren . . . . . . . . . . . . . . .129.6 -5.9 171.2 73.6
BG Group . . . . . . . . . . .1450.0 -25.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . . . .468.1 -3.3 504.6 363.2
Cairn Energy . . . . . . . . .332.4 -0.9 531.8 291.9
EnQuest . . . . . . . . . . . . .128.1 -1.5 141.5 85.7
Essar Energy . . . . . . . . .152.0 -4.7 478.7 101.6
Exillon Energy . . . . . . . .165.5 0.6 469.7 163.0
Heritage Oil . . . . . . . . . .145.3 -4.0 291.0 143.6
Ophir Energy . . . . . . . .494.0 5.9 515.0 184.5
Premier Oil . . . . . . . . . .394.7 -9.8 520.5 310.0
Royal Dutch Shell . . . .2216.0 -7.0 2402.0 1883.5
Royal Dutch Shell . . . .2225.5 -14.0 2489.0 1890.5
Ruspetro . . . . . . . . . . . .202.4 -3.6 214.0 125.0
Salamander Energy . . .214.4 -6.5 317.6 182.3
Soco Internationa . . . . .298.5 -5.9 400.0 278.0
TullowOil . . . . . . . . . . .1511.0 -51.0 1601.0 945.5
Amec . . . . . . . . . . . . . . .1113.0 -3.0 1207.0 740.5
Hunting . . . . . . . . . . . . .941.0 -8.0 968.0 530.0
Kentz Corporation . . . .452.0 -16.0 508.0 375.0
Lamprell . . . . . . . . . . . .339.0 -17.0 395.2 220.7
Petrofac Ltd. . . . . . . . .1672.0 -15.0 1719.0 1108.0
Wood Group (John) . . . .711.5 -6.5 763.5 469.9
Burberry Group . . . . . .1508.0 -46.0 1600.0 1092.0
PZ Cussons . . . . . . . . . .296.8 -4.5 387.9 285.0
Supergroup . . . . . . . . .642.5 5.0 1600.0 435.2
AstraZeneca . . . . . . . .2806.0 -24.5 3194.0 2543.5
BTG . . . . . . . . . . . . . . . .339.4 -4.4 365.0 226.0
Genus . . . . . . . . . . . . . .1270.0 -21.0 1368.0 853.5
GlaxoSmithKline . . . . .1422.5 0.0 1497.0 1184.0
Hikma Pharmaceuti . . .698.0 -10.5 869.0 555.5
Shire Plc . . . . . . . . . . . .2140.0 17.0 2300.0 1791.0
Capital & Countie . . . . . .191.5 -2.1 203.7 154.5
Daejan Holdings . . . . .3001.0 1.0 3053.0 2282.0
F&C Commercial Pr . . . .101.2 0.1 108.0 92.6
Grainger . . . . . . . . . . . .106.2 -3.2 133.2 77.3
London & Stamford . . . .110.5 -3.0 140.0 103.9
Savills . . . . . . . . . . . . . .379.0 3.1 427.1 256.2
UK Commercial Pro . . . . .72.5 1.6 85.5 65.1
Big Yellow Group . . . . .288.3 -5.5 344.4 218.0
British Land Co . . . . . . .485.8 -13.9 629.5 444.0
Capital Shopping . . . . .337.2 -4.5 408.6 288.7
Derwent London . . . . .1721.0 -23.0 1880.0 1400.0
Great Portland Es . . . . .355.7 -6.8 445.0 312.9
Hammerson . . . . . . . . .414.6 -5.7 490.9 345.2
Hansteen Holdings . . . . .72.1 -2.4 89.5 68.0
Land Securities G . . . . .708.5 -12.5 885.0 612.0
SEGRO . . . . . . . . . . . . . .233.2 -4.5 329.6 195.0
Shaftesbury . . . . . . . . .491.0 -7.7 539.0 441.2
Aveva Group . . . . . . . .1683.0 -29.0 1799.0 1298.0
Computacenter . . . . . .436.4 -0.7 490.0 324.7
Fidessa Group . . . . . . .1639.0 -20.0 2109.0 1444.0
Invensys . . . . . . . . . . . .200.0 -2.0 354.9 180.9
Logica . . . . . . . . . . . . . .100.0 0.4 144.8 59.0
Micro Focus Inter . . . . .452.4 -7.9 471.2 242.9
Misys . . . . . . . . . . . . . . .357.2 0.1 420.2 214.9
Sage Group . . . . . . . . .300.0 4.9 312.4 231.7
SDL . . . . . . . . . . . . . . . .740.0 -4.5 756.0 586.0
Telecity Group . . . . . . . .725.0 -2.0 736.0 450.5
Aggreko . . . . . . . . . . .2228.0 -31.0 2316.0 1522.0
Ashtead Group . . . . . . .257.0 -9.7 271.1 99.4
Atkins (WS) . . . . . . . . . .749.0 -43.0 820.0 490.2
Babcock Internati . . . . .797.5 -2.5 810.0 570.5
Berendsen . . . . . . . . . .530.0 5.0 568.0 402.7
Bunzl . . . . . . . . . . . . . .1005.0 -2.0 1021.0 676.5
Cape . . . . . . . . . . . . . . .440.2 -7.7 591.5 295.0
Capita . . . . . . . . . . . . . . .741.0 -8.0 767.0 611.5
Carillion . . . . . . . . . . . . .302.8 -3.3 403.2 281.0
De La Rue . . . . . . . . . . . .917.5 -10.5 1001.0 730.0
Diploma . . . . . . . . . . . .429.0 -3.4 433.8 284.0
Electrocomponents . . .252.8 -3.7 294.9 182.2
Experian . . . . . . . . . . . .990.5 -1.5 995.5 665.0
Filtrona PLC . . . . . . . . . .466.2 -1.0 470.6 296.3
G4S . . . . . . . . . . . . . . . .274.5 -2.1 292.1 219.9
Hays . . . . . . . . . . . . . . . .84.8 -1.7 119.6 58.9
Homeserve . . . . . . . . . .239.1 0.1 532.0 214.7
Howden Joinery Gr . . . .126.2 -2.0 130.8 93.1
Interserve . . . . . . . . . . .298.9 -5.6 341.3 252.8
Intertek Group . . . . . .2492.0 -15.0 2529.0 1744.0
Michael Page Inte . . . .480.0 -8.7 567.0 323.0
Mitie Group . . . . . . . . . .284.1 -2.4 288.3 196.1
PayPoint . . . . . . . . . . . . .617.5 10.0 638.0 410.0
Premier Farnell . . . . . . .213.0 -4.5 301.0 144.5
Regus . . . . . . . . . . . . . . .115.0 -2.3 117.9 64.0
Rentokil Initial . . . . . . . .84.7 -1.3 100.9 58.2
RPS Group . . . . . . . . . . .243.5 -1.5 253.0 156.6
Serco Group . . . . . . . . .548.5 -5.0 597.5 458.0
Shanks Group . . . . . . . . .99.7 -1.8 130.9 90.8
SIG . . . . . . . . . . . . . . . . .119.2 -1.5 153.5 77.0
Travis Perkins . . . . . . .1094.0 7.0 1112.0 715.0
Wolseley . . . . . . . . . . .2445.0 10.0 2558.0 1404.0
ARM Holdings . . . . . . .600.0 -1.0 645.0 464.0
CSR . . . . . . . . . . . . . . . .240.0 -3.1 391.4 154.1
Imagination Techn . . . .694.0 -12.0 717.0 296.9
Spirent Communica . . .158.7 2.1 160.3 105.8
British American . . . .3180.5 -19.5 3245.0 2462.0
Imperial Tobacco . . . .2520.0 -6.0 2576.0 1901.0
Betfair Group . . . . . . . .868.5 -14.5 1030.0 567.0
Bwin.party Digita . . . . .146.2 -5.0 204.0 100.6
Carnival . . . . . . . . . . . .2027.0 1.0 2642.0 1742.0
Compass Group . . . . . .653.0 2.0 668.0 512.5
Domino's Pizza UK . . . .446.0 -25.5 526.0 377.0
easyJet . . . . . . . . . . . . . .489.1 1.0 496.0 302.5
FirstGroup . . . . . . . . . . .289.1 -2.6 370.2 282.5
Go-Ahead Group . . . . .1301.0 15.0 1598.0 1190.0
Greene King . . . . . . . . . .513.5 -3.5 523.5 410.0
InterContinental . . . . .1445.0 -1.0 1497.0 955.0
International Con . . . . .178.2 0.0 258.7 132.0
Ladbrokes . . . . . . . . . . .159.6 -0.3 161.8 114.0
Marston's . . . . . . . . . . . .98.2 -2.0 112.0 84.6
Millennium& Copt . . . .484.4 -6.6 540.0 371.2
Mitchells & Butle . . . . . .274.3 0.5 336.8 215.6
National Express . . . . .252.0 1.9 270.2 201.6
Rank Group . . . . . . . . . .129.5 0.2 153.7 109.5
Restaurant Group . . . . .294.7 -6.4 335.0 254.9
Spirit Pub Compan . . . . .62.0 1.3 62.6 35.3
Stagecoach Group . . . . .263.1 2.1 287.4 215.9
TUI Travel . . . . . . . . . . . .197.4 2.5 250.0 136.7
Wetherspoon (J.D. . . . . .411.0 4.0 468.3 380.5
Whitbread . . . . . . . . . .1849.0 39.0 1889.0 1409.0
WilliamHill . . . . . . . . . .258.8 0.9 261.5 179.3
Abcam . . . . . . . . . . . . . .352.8 -0.8 460.0 320.0
Advanced Medical . . . . .76.5 -0.1 96.0 64.8
Albemarle & Bond . . . .356.0 -0.1 400.1 281.0
Amerisur Resource . . . . .26.3 1.3 29.0 9.5
Andes Energia . . . . . . . .44.0 -3.8 82.8 17.5
Andor Technology . . . .519.0 9.0 685.0 387.1
Archipelago Resou . . . . .65.0 2.0 79.0 55.5
ASOS . . . . . . . . . . . . . .1825.0 -68.0 2468.0 1142.0
Aurelian Oil & Ga . . . . . . .21.0 1.3 73.3 16.0
Avanti Communicat . . .269.3 1.3 499.8 241.3
Blinkx . . . . . . . . . . . . . . .63.8 -1.3 158.0 50.5
Borders & Souther . . . . .69.0 -2.5 80.5 43.5
BowLeven . . . . . . . . . . . .101.3 -2.3 382.3 62.0
Brooks Macdonald . . .1310.0 0.0 1372.5 940.0
Cluf Gold . . . . . . . . . . . .87.0 -1.9 119.0 66.5
Cove Energy . . . . . . . . .208.0 -2.5 242.0 61.0
Daisy Group . . . . . . . . . .107.5 -2.5 127.0 90.0
EMIS Group . . . . . . . . . .565.0 35.3 580.0 397.5
Faroe Petroleum . . . . . .162.3 -0.8 183.3 130.0
Gulfsands Petrole . . . . .144.0 -16.5 315.5 126.0
GWPharmaceutical . . . .85.0 -1.3 130.0 78.5
H&T Group . . . . . . . . . . .297.0 -6.1 395.0 285.0
Hargreaves Servic . . . .1207.0 1.0 1258.0 855.0
Healthcare Locums . . . . . .2.5 0.1 2.5 2.3
ImpellamGroup . . . . . .348.0 3.0 387.5 225.0
Iomart Group . . . . . . . . .133.0 1.0 151.0 85.5
James Halstead . . . . . .495.0 0.0 518.8 410.3
London Mining . . . . . . .274.0 -0.5 436.5 257.5
Lupus Capital . . . . . . . . .128.0 -0.3 150.0 86.0
M. P. Evans Group . . . . .462.0 -7.5 475.0 371.0
Majestic Wine . . . . . . . .437.0 4.0 510.0 315.0
May Gurney Integr . . . .285.8 -4.8 302.0 236.0
Monitise . . . . . . . . . . . . .38.0 1.8 40.0 22.8
Mulberry Group . . . . . .1982.0 82.0 2150.0 1290.0
Nanoco Group . . . . . . . .65.0 -3.0 93.3 38.0
Nautical Petroleu . . . . .324.0 -10.0 419.0 223.5
Nichols . . . . . . . . . . . . . .637.5 -2.5 653.8 467.5
Numis Corporation . . . . .92.5 -1.0 119.6 72.0
Pan African Resou . . . . . .16.5 -0.3 18.3 9.5
Patagonia Gold . . . . . . . .38.0 -1.0 70.0 36.0
Prezzo . . . . . . . . . . . . . . .66.0 -3.0 71.5 53.5
Rockhopper Explor . . . .327.8 -8.0 393.5 141.0
RWS Holdings . . . . . . .540.0 -5.0 560.0 377.0
Secure Trust Bank . . . .1075.0 0.0 1110.0 755.0
Sirius Minerals . . . . . . . . .19.8 -0.3 32.0 6.4
Songbird Estates . . . . . .117.0 2.0 160.3 103.0
Valiant Petroleum . . . . .517.5 1.5 628.5 400.0
Young & Co's Brew . . . .662.5 -12.8 712.0 565.0
Kenmare Resources . . . . . . . . . . .48.6 2.8
UK Commercial Prop . . . . . . . . . .72.5 2.2
Whitbread . . . . . . . . . . . . . . . .1849.0 2.2
Spirit Pub Company . . . . . . . . . .62.0 2.1
SVG Capital . . . . . . . . . . . . . . . . .290.0 1.9
Sage Group . . . . . . . . . . . . . . . .300.0 1.7
PayPoint . . . . . . . . . . . . . . . . . . .617.5 1.7
Laird . . . . . . . . . . . . . . . . . . . . . . .217.6 1.6
Cranswick . . . . . . . . . . . . . . . . . .812.0 1.6
Genesis Emerging M . . . . . . . . .505.0 1.4
Centamin (DI) . . . . . . . . . . . . . . . .71.1 -9.3
RSA Insurance Grou . . . . . . . . . . .107.1 -7.5
Petra Diamonds Ltd . . . . . . . . . .175.7 -6.6
Bumi . . . . . . . . . . . . . . . . . . . . . .659.0 -5.5
Vedanta Resources . . . . . . . . . .1232.0 -5.5
Evraz . . . . . . . . . . . . . . . . . . . . . .359.8 -5.5
Atkins (WS) . . . . . . . . . . . . . . . .749.0 -5.4
Domino's Pizza UK . . . . . . . . . .446.0 -5.4
Antofagasta . . . . . . . . . . . . . . . .1118.0 -5.4
Hochschild Mining . . . . . . . . . . .464.0 -4.9
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 5.250 12 . . . . . . .100.91 -0.03 105.1 100.9
Tsy 9.000 12 . . . . . .103.03 0.00 110.6 101.9
Tsy 2.500 13 . . . . . .283.63 0.00 287.7 282.6
Tsy 4.500 13 . . . . . . .103.81 -0.02 106.4 103.7
Tsy 8.000 13 . . . . . . .111.26 -0.03 116.4 111.1
Tsy 5.000 14 . . . . . . .111.06 0.01 112.9 109.3
Tsy 8.000 15 . . . . . .126.65 0.03 129.2 123.8
Tsy 4.750 15 . . . . . . .113.87 0.03 115.4 109.1
Tsy 4.000 16 . . . . . . .113.36 0.07 114.7 105.6
Tsy 2.500 16 . . . . . .344.29 0.11 344.5 318.0
Tsy 12.000 17 . . . . . .119.52 0.00 127.9 118.3
Tsy 1.250 17 . . . . . . .116.34 0.25 116.6 108.4
Tsy 8.750 17 . . . . . . .139.79 -0.17 141.9 133.3
Tsy 5.000 18 . . . . . . .121.25 0.19 122.5 110.6
Tsy 3.750 19 . . . . . . .114.54 0.33 115.6 100.7
Tsy 4.500 19 . . . . . . .119.64 0.31 120.7 106.5
Tsy 4.750 20 . . . . . . .121.91 0.32 123.5 107.7
Tsy 2.500 20 . . . . . .365.04 0.29 367.1 322.1
Tsy 8.000 21 . . . . . . .150.32 0.30 153.4 134.8
Tsy 1.875 22 . . . . . . .126.93 0.46 129.1 113.3
Tsy 4.000 22 . . . . . . .115.85 0.34 118.2 100.0
Tsy 2.500 24 . . . . . .327.05 0.43 334.7 282.2
Tsy 5.000 25 . . . . . .126.76 0.42 130.6 108.5
Tsy 1.250 27 . . . . . . .122.94 0.34 127.0 106.6
Tsy 4.250 27 . . . . . . .117.74 0.36 122.7 99.1
Tsy 6.000 28 . . . . . .141.96 0.34 148.0 120.7
Tsy 4.125 30 . . . . . . .310.41 0.25 322.8 268.3
Tsy 4.750 30 . . . . . .123.96 0.34 130.5 104.3
Tsy 4.250 32 . . . . . . .116.50 0.34 123.1 97.5
Tsy 4.250 36 . . . . . . .116.26 0.31 123.9 96.8
Tsy 4.750 38 . . . . . . .125.72 0.32 134.2 105.0
Tsy 4.500 42 . . . . . . .122.01 0.35 130.8 101.3
% %
AUTOMOBILES & PARTS
AEROSPACE & DEFENCE
BANKS
BEVERAGES
CHEMICALS
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXEDLINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER &MULTIUTILITIES
GENERAL INDUSTRIALS
GENERAL RETAILERS
HEALTH CARE EQUIPMETN & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
NON LIFE INSURANCE
LIFE INSURANCE
MEDIA
MINING
MOBILE TELECOMS
NON EQUITY INVESTM. COMM.
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
REAL ESTATE INVEST. TRUSTS
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. &EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
I
NDIVIDUAL savings accounts
(Isas) are a success story of finan-
cial marketing. Most are aware
of them, many use them, and a
great number understand their tax
benefits. As the tax year ends on 5
April, everyone should now ensure
they take full advantage.
Despite Isas piercing the public
consciousness, some investors dont
make the most of them. Keith Evins,
head of UK marketing at JP Morgan
Asset Management, says misconcep-
tions concern Isa providers, and moti-
vate a strong emphasis on education
and guidance by providers.
Most errors stem from the idea
that Isas are products in themselves,
when in fact theyre just tax wrap-
pers. Others are a misunderstanding
of varying kinds of Isas and their flex-
ibility. Many people also subject their
Isas to a degree of neglect. Central to
this is often a belief that Isas only
offer tax benefits, with investors for-
getting that they can be vehicles for
growth as well as shelters for capital.
TAX EFFICIENCY
Isas should be the cornerstone of any
investment strategy because they can
combine tax benefits with flexibility.
There is still time for investors to shel-
ter up to 10,680 from taxation and,
once inside the Isa wrapper, that
money isnt liable for tax on interest,
on dividends or on capital gains.
According to Evins, the best strate-
gy to consistently use your full Isa
contribution limit is through steady
monthly contributions. This encour-
ages habitual saving as well as, if
invested in an equity Isa, helping to
smooth out the ups and downs of the
market if the investor is nervous of
making a lump contribution at the
top of the market.
CASH VS EQUITY
Isas can be more diverse than just tax-
protected savings accounts. Cash Isas
attract a high proportion of savings,
but contributions can be placed into
a diverse range of investment vehi-
cles. Cash isnt necessarily the best
way to grow the value of your contri-
butions.
Cash Isas are often perceived as the
risk-free option. Although they offer
capital protection, this benefit isnt
necessarily exclusive. Catherine
Penney, of Barclays Stockbrokers,
notes that low-risk products can be
bought through equity Isas.
Smash open your
Isas full potential
Isas can provide more than just tax benets for those
nimble enough to exploit them, writes Tom Welsh
Your contributions need not
be locked away forever, so
keep an eye on new products
The choice between cash and equi-
ty should be decided by the purpose
and the time frame of the invest-
ment. Penney says instant access cash
Isas are for emergency funds. If your
time frame is longer, and you want
better growth, equity Isas or fixed
term cash Isas may be more appropri-
ate. Stocks and shares Isas also allow a
larger contribution the full 10,680
in the tax year 2011-12, compared to
5,340 for cash Isas.
CAPITAL EROSION
Cash Isas carry a risk based on histor-
ically low rates of return. Nick Blake,
head of retail at Vanguard Asset
Management UK, warns that return
on interest may be below the rate of
inflation, thus eroding purchasing
power over time.
Blake says that stocks and bonds
typically, over longer periods, outper-
form cash deposits and provide better
protection against inflation. Unless
you require easy, quick access, you
should consider how inflation might
put the purchasing power of your
core contribution at risk.
ISA NEGLECT
Isa contribution limits are refreshed
every year so the long-term cap on
your investment is only limited by
financial circumstances and lifespan.
But Isa investments shouldnt be
made and forgotten about. In tough
economic times, its even more cru-
cial to review all of your existing Isas,
says Penney.
Evins says care should also be taken
with cash Isas. The money isnt
locked up forever and there is a ben-
efit in watching market competition,
and moving money when possible.
With instant access cash Isas,
bonus rates offered as enticements
can end, and investors need to move
their money once they expire.
Similarly, with fixed rate cash Isas,
you should consider how long you
want to lock away your investment,
and whether better returns could be
gained from an equity product.
The cash Isa market is competitive
and consumers should take advan-
tage of this. Providers offer attractive
initial rates because they want you to
invest with them, and this initial
attractiveness wears off because
providers rely on a degree of torpor
by investors. To make the most of
your Isa, dont conform to their low
expectations.
29
cityam.com
ISA SPECIAL MANAGEMENT WEALTH
Halifax Isa Saver Fixed 4.50% 5 Years Yes
Virgin 3 Year Fixed Rate 3.30% 24/04/2015 Yes
FIXED RATE CASH ISAS COMPARED
Account name Interest Rate (AER) Term/Notice Transfer In
Cheshire BS Direct 3.50% Fixed 2.50% until 30/09/13 No
NatWest e-Isa 3.50% Fixed 1% for first 12 months Yes
Santander Direct 3.30% 2.80% for first 12months Yes
INSTANT ACCESS CASH ISAS COMPARED
Account name Interest Rate (AER) Bonus Transfer In
S
o
u
r
c
e
M
o
n
e
y
s
u
p
e
r
m
a
r
k
e
t
*To qualify for our best Fixed Rate Cash ISAs, customers must be eligible for an ISA and either hold a Co-operative Bank
current account, or open a Co-operative Bank current account by completing the switching process from their present bank,
and make minimum monthly payments of 800 into the account.Terms and conditions apply. Our best Fixed Rate Cash ISAs are also available to
existing customers with a Britannia Fixed Rate Cash ISA maturing on 6th April 2012. Lines are open from 8am until 9pm, Monday to Friday and 9am until 6pm, Saturday and
Sunday. Calls may be monitored or recorded for security and training purposes. Calls to 0800 numbers are free from any UK landline. Call charges from other providers may
vary. The Co-operative Bank reserves the right to decline or to accept any application and/or deposit. Britannia is a trading name used by The Co-operative Bank, which is
authorised and regulated by the Financial Services Authority (No. 121885), subscribes to the Lending Code and to the Financial Ombudsman Service, and is licensed by the
Office of Fair Trading (No. 006110). The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No. 990937.
My bank gives me
their best rate. Thats
why I rate my bank.
We reward our main current account customers*
with our best deals for Fixed Rate Cash ISAs.
Talk to us in any branch of The Co-operative Bank or Britannia | Visit us online | Call 0800 169 9369
T
HE end of another tax year
looms, but it seems from fig-
ures released by HM Revenue
and Customs for 2010/11 that
as far as investment Isas are
concerned, weve seen more talk than
action. The data reveals that only 7
per cent of the UK adult population
have a stocks and shares Isa and
among those that do the average
invested is 4,613 less than half the
amount that could currently be
invested each year.
These are amazingly low take up
figures. The value of an Isas benefit
depends on each individuals circum-
stances; while the case for investment
Isas for basic rate taxpayers is not
clear cut, in my opinion it is difficult
to argue against the benefits for a
higher rate tax payer. As the 40 per
cent tax becomes payable on gross
income of 42,475 (41,450 from
April 2013) for this year, its clear that
for many people, its a missed oppor-
tunity.
The key to understanding the true
potential of investment Isas is not to
look upon them as a one-off annual
tax savings account but to view them
as a life-long fiscal planning tool. A
number of our clients who have
recognised this have already become
Isa millionaires.
Although these people are extreme
examples, they illustrate the long-
term potential of these tax efficient
vehicles. They have viewed Isas and
in most cases their predecessor the
Personal Equity Plan (Pep) as long
term tax efficient shelters, built brick-
by-brick, year-by-year. Although to
achieve these value levels they have
obviously made some great invest-
ment decisions, you can build up
your own shelters more quickly than
you may think. Even if you focus just
on the Isa era which began in 1999
(the monies held in Peps were trans-
ferrable to Isas), a married couple
could have made contributions to
investment Isas alone of 202,560.
The Isa millionaire story is obvious-
ly not just about contributions. Its
about capital growth. We should not
forget though that most Isa investors
dont become millionaires. Some will
achieve more modest levels of growth
and some will lose. Isas merely inflate
growth, by reducing tax, where it is
achieved. Those who have achieved
the status or even lesser degrees of
success tend to fall into two cate-
gories: the chancers and the investors.
THE CHANCERS
Some Isa millionaires have followed a
strategy of having lots of eggs in a few
baskets. They have backed their judg-
ment in one or two companies and
for them it has paid off. This is a very
high-risk strategy and there are exam-
ples of investors who have lost signifi-
cant amounts of money by adopting
such a focused plan.
There is no doubt that diversifica-
tion reduces risk. I often refer to the
10-2 guideline which states: do not
put more than 10 per cent of your
portfolio into one company and dont
Isa millionaires: A
guide to building
tax-free prosperity
There is a split between the chancers that struck it rich through a risky
strategy and those investors that applied more reasoned judgements
23
INVESTMENT
COMMENT
JOHN COTTER
invest in more than two companies in
one sector. This policy would have
served you well over the years but the
chancers have paid no heed to such a
risk reducing strategy. An example of
a chancers stock is Tullow Oil. As you
will see from the chart (above) over
the last five years investing in Tullow
Oil would have quadrupled your con-
tributions. Those who have followed
this strategy clearly demonstrate that
the age old relationship between risk
and reward still applies as it always
has and to date they have achieved
greater rewards for taking bigger
risks. It wont always have such a
happy ending.
THE INVESTORS
Some have achieved Isa millionaire
status by a far more measured
approach. They have built their tax
efficient shelter not just in the Isa era
but in the previous Pep period which
started over 25 years ago. They have
taken a long-term view and in many
cases appreciated the importance of
both reinvested dividends and divi-
dend growth to the overall perform-
ance of equity investment. SSE
(previously Scottish and Southern
Energy) is a great example of such a
stock. Although over the last five
years this stock has lost about 15 per
cent in terms of its share price (above),
if purchased in 1989 at 240p the pres-
ent dividend of 6.1 per cent on its cur-
rent value at the time of writing
13.30 would represent an annual
return on the dividend alone of over
30 per cent based on the original
investment back in 1989.
Past performance is not, of course,
a reliable indicator of future perform-
ance. The figures speak for them-
selves. But there is one more point I
would make for those people who
have opted for the no risk alterna-
tive of cash Isas. Although there is
extra risk in investing in stocks and
shares Isas you can lose money one
of the best methods of reducing the
risk of the stock market is to feed
money in over time. This reduces the
chance of getting your short-term
timing wrong and allows you to bene-
fit from pound cost averaging if the
markets move against you. This sim-
ply means you will buy more shares if
prices fall and therefore reduce the
average book value of shares pur-
chased. Isas with their annual
allowances force investors to adopt
such an approach. Although it only
reduces the risk and does not eradi-
cate it, for some it may be enough to
make them think again about this
much underused tax efficient vehi-
cle.
John Cotter is a vice president at Barclays
Stockbrokers.
30
MANAGEMENT WEALTH ISA SPECIAL
cityam.com
Tullow Oil
Mar07 Nov07 Jul 08 Mar 09 Nov09 Jul 10 Mar 11 Dec11
500
750
1,000
1,250
1,500
1,750 p
1,600
SSE
Mar07 Nov07 Jul 08 Mar 09 Nov09 Jul 10 Mar 11 Dec11
1,000
1,400
1,200
p
Please remember, investments into an ISA will depend on individual circumstances
and all tax rules may change. The value of investments and income can go down
as well as up and you may not get back the amount you invested. The Select List is
not a recommendation to buy or sell funds. Annual management charges apply. If
you would like further information, please contact our UK call centre. Alternatively,
if you require a recommendation, please contact an adviser.
*0% initial charge if you invest in Fidelity or Select List funds online or by phone by midnight on 5 April 2012.
Terms and conditions apply, offer ends 30 March 2012 and applies to investments over 10,000. **Based on gross sales for w.c. 5 March 2012. The Simplied Prospectus or Key Investor Information Document (KIID) for
Fidelity and non-Fidelity funds is available in English and can be obtained from our website at www.delity.co.uk/importantinformation or by calling 0800 41 41 61. The full prospectus for Fidelity funds may also be obtained from Fidelity. For non-Fidelity funds the full prospectus and the KIID or Simplied Prospectus are available from
the Fund provider directly. Issued by FIL Investments International, authorised and regulated in the UK by the Financial Services Authority. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. CSO3420/0312/V1
Ours or theirs.
Yours for less.
From Aberdeen and AXA, to Schroders and Standard Life you can pick up
everything you need at the Fidelity fund supermarket. Weve over 1,200 funds from
some 70 leading providers. And if you want help choosing some for your ISA, take a look
at the Select List a collection of over 50 funds hand-picked by our experts. With no
initial charge,* plus 20 cash back,
it now costs less than ever to buy through Fidelity. So,

whether you want ours or theirs, check them out at our fund supermarket rst.
w: delity.co.uk/list
t: 0800 368 0217
Quote CAM11
20
cash back
Act before 30 March
T&Cs apply
Last chance to get
NO
initial charge
Annual management
charges apply
Latest top-selling Select List funds**
1. Aberdeen Emerging Markets Fund
2. Invesco Perpetual High Income Fund
3. Fidelity South East Asia Fund
4. Fidelity Emerging Europe, Middle East & Africa Fund
5. M&G Strategic Corporate Bond Fund
Fidelity ISA 2012
Phone lines open Mon to Sun, 9am 6pm
The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the
Financial Services Authority under reference 146768. The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB.
cut
your SA
fees
Our Self-select Funds ISA has no quarterly admin fee
If you want to invest your ISA allowance in funds, then this could be just what youre
looking for. We have over 1,800 funds for you to choose from, outstanding customer
service and you can apply online in a matter of minutes.
Whats more, well even cover the cost of transferring your ISA from another provider,
up to a maximum of 300 (conditions apply).
Please note that tax allowances depend on your individual circumstances, and ISA
benefits could change in the future. The value of investments and the income from
them can fall as well as rise, and you may not get back your original investment.
Find out more on 0845 61 85 252 or at share.com/funds-isa
A
S THE Eurozone crisis rum-
bles on and Chinese growth
starts to slow, many people
are understandably con-
cerned about the state of UK
and world stock markets.
When equity markets are volatile,
bonds tend to be where investors
turn, but there are concerns about
these too, with developed market
governments so heavily in debt. So,
as the tax-year end fast approaches,
what is an Isa investor to do? You
cant put as much money aside in a
cash Isa as in an investment Isa and
the rates arent great but if you
dont use your allowance at all this
year youll lose it so waiting for
better times isnt an option.
THE LONG VIEW
Many experts, including myself, will
encourage you to look beyond the
short-term uncertainties, and take
that leap of faith to invest now for
your longer-term goals. If you are
investing for a long period of time
you can afford to ride out the mar-
kets lumps and bumps.
And for the new tax year we will
also suggest that regular monthly
savings may be a good idea and
extol the virtues of pound cost aver-
aging: investing small amounts on a
regular basis means you do not need
to panic when markets fall, as you
will be buying more of your chosen
investment, and when markets are
up you buy less. Although there is
not enough time left in the current
tax year to opt for monthly savings,
this is something to consider for
next year.
PARK AND RIDE
If you are feeling the pressure of the
looming deadline and just dont
have the time to research and select
the funds you want, there is anoth-
er solution. Many Isa providers offer
a cash holding facility, usually
called a Cash Park or Cash Reserve,
which you can use to place your
money within an Isa today thereby
securing your tax allowance but
letting you decide where to invest at
a later date when you are more con-
Driving your Isa allowance into an Isa park can be very useful but dont forget to move it
fident about the economic and mar-
ket outlook.
Theres no time limit on how long
you can hold money in an Isa cash
reserve, but the Inland Revenue
does expect you to treat it as a tem-
porary facility and ultimately invest
the money into stocks or funds. As
the interest rates on these facilities
are barely above zero in most cases,
and what interest you do receive is
taxed at 20 per cent, there is also lit-
tle incentive to leave your money
there too long. You should also be
aware that, while I cant think of
any Isa provider that imposes an ini-
tial charge on the use of the facility,
some may charge you to switch out
of it into a fund, so its best to check
beforehand.
The important thing is not to for-
get you have money in an Isa cash
reserve. If you have long-term goals
its not timing the market but time
in the market that counts, and
therefore its best to get back on
track as soon as possible and make
your investment.
They are a useful facility though,
and widely used as last years Isa sea-
son proved: from 1 January to 5
April 2011, the Isa cash reserve was
the best selling Isa investment on at
least one fund supermarket. And
they are also useful for existing Isa
investments as they can be used to
switch all or part of your Isa portfo-
lios into cash if you believe markets
are toppy and likely to fall. You can
then move your portfolio back into
funds when you are more optimistic
that markets will rise crucially,
while retaining the all important
tax advantages you have built up
over the years.
Darius McDermott is managing direc-
tor of Chelsea Financial Services.
INVESTMENT
COMMENT
DARIUS McDERMOTT
Dont panic: Parking
your cash will buy
you some extra time
32
cityam.com
ISA CASH PARK
These are likely to appeal
if you:
n Are seeking temporary shelter from
stock-market exposure and don't want to
lose your annual allowance.
n Want to make full use of your stocks
and shares ISA allowance without
immediately committing your money to
equity or bond markets.
n May prefer to shift some of your ISA
investments into cash temporarily during
times of market uncertainty, even though
research shows you will usually be better
off if you avoid making short-term
changes to long-term investments
Source: TQ Invest
This is a facility that allows you to hold
your equity Isa in cash, temporarily, and
earn interest until you are ready to invest.
A
NDREW Lang, the nine-
teenth-century the Scottish
poet, was onto something
when he observed: An unso-
phisticated forecaster uses
statistics as a drunken man uses
lamp-posts for support rather than
for illumination. With this in mind
it would be a mistake to lean too hard
on the statistics garnered from
Interactive investors website survey.
Yet, theres plenty to learn and it
can pay to see what others are doing
even if you choose to do the opposite.
As Socrates almost said: An unexam-
ined tax wrapper is not worth using.
THE KEY FINDINGS ARE:
nThe number investing in cash Isas
has stayed about the same. The num-
bers investing into self-select Isas has
risen by 16 per cent, this has been at
the expense of managed funds.
nPeople buying their Isas from fund
supermarkets are in the majority,
with 53 per cent doing so. The num-
ber buying from fund managers
directly has fallen again.
nThe number of investors happy with
the performance of their Isa has fall-
en by 28 per cent.
nSaving for retirement is the top rea-
son to invest in an Isa, with 40 per
cent choosing this a rise of 12 per
cent on last year.
nThe UK is still the most popular
investment area, rising by 13 per cent.
The US has shown the biggest
increase, rising 60 per cent.
n90 per cent intend to take out an Isa
this year.
nFor those taking out a self-select Isa
the most popular choices are UK
shares, international shares, invest-
ment trusts and funds.
nOver 74 per cent are aware of Junior
Isas but only 14 per cent have an
intention to invest in them.
Philip Salter
Vital statistics on what some investors
A survey delivers some useful numbers on the changing views of its clients
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Yes No
Have you taken an Isa in this tax year?
2
0
1
1
69.2%
28.1%
30.8%
71.9%
2
0
1
2
2
0
1
1
2
0
1
1 2
0
1
2
2
0
1
1
2
0
1
1
2
0
1
2
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Cash Fund Self Select Mixtureof All
What type was it?
2
0
1
1
25.8%
22.8%
2
0
1
2
2
0
1
1
16.5%
20.8%
2
0
1
2
32.3% 31.3%
2
0
1
2
2
0
1
1
2
0
1
1
25.4% 25.1%
2
0
1
2
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
How did you pay?
LumpSumOnly
2
0
1
1
71.4%
73.7%
2
0
1
2
MonthlyContributionsOnly
10%
8.1%
Both
2
0
1
1
18.6% 18.3%
2
0
1
2
2
0
1
1
2
0
1
1
2
0
1
2
2
0
1
2
2
0
1
1
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Why did you primarily take out your last Isa?
Tax
Advantages
Attractive
Interest
Rate
Attractive
Growth
Saving
Best
Product
forSaving
IFARecom-
mended
Them
HaveDone
itforYears
NoNeedto
Declarein
TaxReturn
Other
Reason
43.6%
4.6% 4%
11.4%
5.3%
7.8%
10%
0.9%1.3%
23.6%
21.7%
6.4%7.4%
1.7%1.1%
49.1%
2
0
1
2
2
0
1
1
2
0
1
2
2
0
1
1
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
How did you buy your last Isa?
Online Direct Froma
FundManager
FromanIFA FromaBankor
BuildingSociety
35.9%
30.8%
6.4%
9%
4.3%
8.2%
52.6%
50.7%
0.8% 1.3%
Cant Remember
2
0
1
2
2
0
1
1
2
0
1
2
2
0
1
1
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
How happy have you been with your Isa(s) performance?
GenerallyHappy
2
0
1
1
45.4%
62.7%
2
0
1
2
GenerallyUnhappy
10.2%
6.9%
Mixed
44.4%
30.4%
2
0
1
1
2
0
1
2
34
cityam.com
think of Isas
Socrates wouldnt be interested in a Junior Isa
39.4%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
What is your primary reason for investing in an Isa?
After the
TaxBreaks
ThinkSavingis
aGoodIdea
SavingTowards
Retirement
HaveaSpecic
Target (e.g. Holiday)
4.9%
4.1%
35.3%
26%
30.4%
27.2% 26.3%
2.5% 3.9%
Other Reason
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
2
2
0
1
2
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Intentions
toInvest
AlreadyInvested NoInterest Not MadeUp
MyMind
In relation to Junior Isas have you?
3.1%
64.8%
17.9%
14.3%
35
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Where are you likely to invest this year?
UK
Companies
US
Companies
European
Companies
Established
Emerging
Markets
New
Emerging
Markets
Natural
Resources/
Commodities
Other
66.7%
75.2%
16.7%
26.6%
23.6%
20.2%
40.8%
35.3%
23.5%
21.4%
38.1%
30.1%
13.7%13.9%
2
0
1
1
2
0
1
1
2
0
1
2
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
2 2
0
1
2
2
0
1
2
2
0
1
1
2
0
1
2
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
ATimetoSell ATimetoBuy ATimetoHold Dont Know
Which of the following best sums up your view in the UK market this year?
2.8%
3.8%
37.1%
33.2%
36.7%
38.5%
23.3%
24.5%
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
1
2
0
1
2
2
0
1
2
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
What best describes your view on the investment
outlook over the next ve years?
Positive Neutral Negative VeryNegative Dont Know VeryPositive
5.9% 5.8% 4.8%
4.2%
1.1% 0.9%
6.6%
4.8%
2
0
1
1
26.9%
21.7%
2
0
1
1
62.7%
54.7%
2
0
1
2
2
0
1
2
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Which of the following factors do you consider to be the
biggest threat to your wealth over the next 12 months?
Unemployment Interest Rates Ination Tax
16% 16.5%
43%
52.5%
16.4%
14.9%
13.3%
8.4%
11.4%
7.7%
Other
2
0
1
1
2
0
1
1
2
0
1
1 2
0
1
2
2
0
1
2
2
0
1
2
Mixed Investment
0-35% Shares
Mixed Investment
20-60% Shares
Mixed Investment
40-85% Shares
Flexible Investment
All Funds
Growth
UK All Companies
UK Smaller Companies
Japan
Japanese Smaller
Companies
Asia Pacic incl. Japan
Asia Pacic excl. Japan
China/ Greater China
North America
North American Smaller
Companies
Europe excl. UK
Europe incl. UK
European Smaller
Companies
Global
Global Emerging Markets
Equity
Mixed
Asset
Lines are open Monday to Friday 7.45am 7pm. Calls may be recorded. Selftrade is a trading name of Talos Securities Limited and registered trade
mark of Boursorama. Talos Securities Limited is incorporated in England and Wales (Registration No. 4196325, Registered Address: Boatmans House,
2 Selsdon Way, London E14 9LA), is authorised and regulated by the Financial Services Authority (FSA Register No. 208271), is a member of the
London Stock Exchange and PLUS Markets plc and is an HM Revenue & Customs Approved Plan Manager.
W
a
n
t to
yo
u
r S
h
a
re
s IS
A
in
ve
stm
e
n
t?
Invest in a self-select Shares ISA today and win up to 10,680
(terms apply)
Tailor your portfolio to suit your individual investment aims
Select from over 2,500 funds, plus deal in shares, ETFs, bonds
and gilts on our fast, reliable trading platform
Open a Selftrade Cash ISA too and move money from savings
to investments easily
A Shares ISA is a tax-ecient wrapper designed for longer-term
investing. e value of investments can fall as well as rise and you
may get back less than you invested. Tax rules may change and
any tax benets depend on individual circumstances. Selftrade
does not provide investment advice.
W
in back your subscription up to 10,680
w
w
w
.selftrade.co.uk/double
or call 0845 0700 720
Be a selftrader. Open a Shares ISA today

b
b
W
a
n
t to
b

b
b
l
l
e
e l
b
e
l
b
b
l
l
e

e
ee
e

d
d
o
o
d
d
o
o
d
d
o
o
o
u
r
S
h
d
o

b
b
o
o
u
u
o
o
u
u
b
u
o
o
u
u
b
b
h
a
re
s IS
A
in
ve
u
u
o
u
u
W
a
W
a
n
t to
u

b
b
l
l
e
e l
b
e
l
b
l
le
e
yo
u
r S
h
a
re
s IS
A
in
ve
stm
e
n
t?

e
ee

yo
u
r S
h
a
re
s IS
A
in
ve
stm
e
n
t?
apply)
(terms
n i t s e v nnv I
your
ailor
T
k cck
a b
n i
W

yo
u
r S
h
a
re
s IS
A
in
ve
stm
e
n
t?
apply)
y a d o t A S I s e r a h S t cct e l e s - f llf e s a n
individual
your
suit
to
portfolio
your
u
n o i tti
p i r ccr
s b u s r u o y
k

0 8 6 , 0 1 o t p u n i w d n a
aims
investment
individual
s d n o b , s F T EET , s e r a h s i l
0 8 6 , 0 1
o t
p u

your
ailor
T
gilts
and
t cct e l e S
a t y n a
e g y a m
n i t sst e v n i
e r a h S A
investments
to
n e p O

portfolio
your
trading
reliable
fast,
our
on
gilts
e d s u l p , s d n u f 0 0 5 , 2 r e v o m o r f
advice.
investment
p
provide
a u d i v i d n i n o d n e p e d s t e n e b x a
. d e t s e v n i u o y n a h t s s e l k cck a b t e
a c s t n e m t s e v nnv i f o e u l a v e . g n
r e p p a r w t n e i cci
e - x a t a s i A S I s e
easily
investments
m d n a o o t A S I h s a C e d a r t fft llf e S a

platform
trading
E , s e r a h s n i l a e
advice.
e d a r t fft llf e S . s e c n a t s m u c r i cci l
d n a e g n a h cch y a m s e l u r x a T
u o y d n a e s i r s a l l e w s a l lll a f n
m r e t --t r e g n o l r o f d e n g i s e d r
s g n i v a s m o r f y e n o m e v o m

not
does
y a
a
e B

investment
provide
not
S
a
n e p O . r e d a r ttr fft llf
e s
or call 084
w
w
w
.selft
w
w
w
.selft
084

y aay
d o t
A S I s e r a h S
45 0700 7
trade.co.uk/double
trade
45
0700
720

w
w
w
.selftrade.co.uk/double

London Stock Exchange and PLUS Markets plc and is an HM Revenue & Customs Approved Plan Manager
authorised is 9LA), E14 London , Way Selsdon 2
Limited Securities alos TTa Boursorama. of mark
7.45am Friday to Monday open are Lines

London Stock Exchange and PLUS Markets plc and is an HM Revenue & Customs Approved Plan Manager
Services Financial the by regulated and authorised
(Registration Wales and England in incorporated is Limited
trading a is Selftrade recorded. be may Calls 7pm.

. London Stock Exchange and PLUS Markets plc and is an HM Revenue & Customs Approved Plan Manager
member a is 208271), No. Register (FSA Authority Services
Boatmans Address: Registered 4196325, No. (Registration
registered and Limited Securities alos TTa of name trading

the of member
House, Boatmans
trade registered
M
OST funds can be broadly
classified as either income
or growth oriented and
most managers focus their
abilities on one to the exclu-
sion of the other. There is plenty of
debate about which investors should
favour, and although there are good
reasons to lean towards one or the
other, ultimately investors should
focus on diversification not classifi-
cation. Not least because the hold-
ings of income and growth funds are
not as different as often presumed.
DIFFERENT STROKES
Matthew Jennings of Fidelity
explains that the main difference
Building a balanced Isa portfolio that matches
your time and risk preferences is the crucial
investment consideration, writes Philip Salter
A BALANCED VIEW
Jason Witcombe of Evolve Financial
Planning encourages investors to
look at total returns. He says that
what investors want is a fund that
will make them money, whether
that is income or growth or a mix-
ture of the two really doesnt mat-
ter: No one would want a fund that
produced a fantastic 8 per cent
yield but lost a less than fantastic 10
per cent per annum in capital
terms.
Adrian Lowcock, senior invest-
ment adviser at Bestinvest, thinks
investors shouldnt choose one over
the other: Whether you are seek-
ing income or growth you should
have some income funds in your
portfolio and vice versa. Some
funds self-define as combined
income and growth funds. Lowcock
thinks these are fine if the portfo-
lio is smaller and it is hard to get
diversification, but generally speak-
ing we prefer to separate out the
two approaches to ensure the man-
ager is focused.
SAME DIFFERENCE
All stereotypes hide a multitude of
similarities. Guy Foster, who is head
of portfolio strategy at Brewin
Dolphin, thinks investors should be
wary of generalisations, such as the
perception that growth funds have
a tendency towards volatility. Ellis
notes that equity income funds
have experienced as much volatility
as growth funds over recent years.
In fact, an analysis of the two sec-
tors shows their performance to be
highly correlated this is because
they tend to invest in similar stocks.
36
cityam.com
between income and growth funds is
the type of return they aim to pro-
vide to investors: A growth fund
aims for capital appreciation over
time, whereas an income fund aims
to deliver a steady stream of income,
which can be paid out to the
investors or re-invested in the fund.
As such, growth fund managers will
typically invest in companies that
they believe will be able to signifi-
cantly grow their earnings over
time, while an income fund manag-
er is more concerned about the level
of dividend that the company pays,
and the sustainability of that divi-
dend.
Simon Ellis of Legal & General
Investments says growth is easier to
define, but harder to find. Tapping
into a consistently successful fund
manager in an investment area that
you think shows long-term growth
potential requires some diligent
research, but above all you need to
believe a market is going to grow.
He suggests investors without the
time or inclination to try to pick the
best managers should access the
growth market through tracker
funds, as they are much cheaper.
Income funds work on different
principles explains Ellis, the main
principle is that by picking up divi-
dends, coupons and interest along
the way, you should be making at
least a little money most of the
time. Many very large companies
are paying out dividends way above
commonly available deposit funds,
notes Ellis. For example, Sainsburys
currently pays out 5 per cent and
GlaxoSmithKline offers 4.9 per cent.
Whether driven by animal spirits,
business cycles or credit fuelled
booms and busts, in theory at least,
the bear and the bull tend to benefit
either income or growth funds.
Growth funds usually perform well
during periods of confidence in the
economy, whereas income funds will
perform well when investors prefer
the safety and tangible nature of div-
idends, explains Jennings. He adds:
The protection afforded by a regu-
lar and stable dividend payment con-
fers a significant benefit to income
funds during periods of stress in
equity markets. However, when mar-
kets are optimistic, it is growth
funds that will usually outperform.
THE GLASS IS HALF SOMETHING
Investors in need of an income
principally those in retirement are
constrained by their time horizons
to focus on income over growth, but
for everyone else, the portfolio
weighting in favour of one over the
other should it is believed be
based on a clear market view.
Jennings says over the long term it
is clear that optimistic market condi-
tions favour growth funds, while
more cautious markets favour
income funds.
Foster says that the discipline of
income investing should keep
investors away from bubbles, as the
underlying stocks must generally be
providing distributable profits in the
immediate term they are therefore
less reliant on growth which may
turn out to be illusory. However, he
adds: Income investors can be lured
into mistakes by the siren song of
high dividend yields. He notes that
banks in 2008 were a prime example
of this: A high dividend yield can be
halted, only for capital to be diluted
too. Another example Foster gives is
BP, where income funds held the
stock prior to the Deepwater
Horizon crisis only to sell it when
the dividend was cut in that
instance the discipline of income
investing meant missing out on
much recovery potential.
Income
It looks half empty to me
Funds that choose not to be
classied into specic IMA sectors, or
which have been removed from
them for non-compliance.
Income
Specialist
Money Market
Short Term Money Market
Protected
Absolute Return
Personal Pensions
Property
Specialist
Technology &
Telecommunications
UK Equity & Bond
Income
UK Equity Income
Global Equity Income
UK Gilts
UK Index Linked Gilts
Corporate Bond
Strategic Bond
High Yield
Global Bonds
Unclassied
Equity
Fixed
Income
Mixed
Asset
Capital
Protection
Threadneedle UK Equity Income 18% 1,900
Newton Global Higher Income 12% 1,300
First State Global Emerging Markets Leaders 19% 2,000
M&G Strategic Bond 15% 1,600
Standard Life Global Absolute Return Strategies 10% 1,080
Schroder European Alpha Plus 11% 1,200
Franklin UK Midcap Growth 15% 1,600
ADRIAN LOWCOCKS RECOMMENDED FUNDS
12 Month
Return
3 Month
Return
5 Month
Rteturn
Yield TER
Oliver Clarke-Williams of FE notes
the r-squared correlation between
the two sectors is 0.98 over the past
three years. He also notes that of
the top 10 holdings of the UK Equity
Income funds, the five most popu-
lar are GlaxoSmithKline, Vodafone,
Royal Dutch Shell, BP Group and
BAT, appearing in the top 10 hold-
ings of over half the funds. He adds
that four of these holdings also
appear in the top five of the UK All
Companies sector the only one
missing is BAT, which falls to eighth
and is replaced by BG Group sug-
gesting that the way income and
37
Growth and Income Inows and Outows
Dec
05
Jan
06
Feb
06
Mar
06
Apr
06
May
06
Jun
06
Jul
06
Aug
06
Sep
06
Oct
06
Nov
06
Dec
06
Jan
07
Feb
07
Mar
07
Apr
07
May
07
Jun
07
Jul
07
Aug
07
Sep
07
Oct
07
Nov
07
700,000,000
Income
Growth
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
-100,000,000
0
-200,000,000
growth funds invest are not sub-

stantially different.
As such, a balance of income and
equity doesnt necessarily result in a
balanced portfolio. In this instance
your biases might not undermine
your balance. You or your adviser
will need to get under the skin of
your investments to see if you have
the diversification you really want.
Whether your portfolio is diversi-
fied or weighted in favour of growth
or income, Ellis says one thing is for
sure: In a high tax economy, put-
ting money away into a tax-free Isa
is almost a personal duty.
ADRIAN LOWCOCKS RECOMMENDED ISA PORTFOLIO
% of 10,680 Rounded Distribution
versus growth isnt the crunch choice
INCOME
Threadneedle UK Equity Income 6% 63% 21% 4.1% 1.62%
Newton Asian Income 16% 135% 92% 4.9% 1.66%
Newton Global Higher Income 9% 66% 40% 4.5% 1.64%
M&G Strategic Corporate Bond 11% 45% 56% 4.0% 1.17%
GROWTH
First State Global Emerging Markets Leaders 13% 105% 103% n/a 1.60%
Franklin UK Midcap Growth 9% 121% 56% n/a 1.56%
Aberdeen World Equity 5% 73% 33% n/a 1.63%
Schroder European Alpha Plus -6% 52% 8% n/a 1.62%
MISCELLANEOUS
Standard Life Global Absolute Return Strategies 7% 40% n/a n/a 1.62%
Investment Management Association sector classification
Source: IMA Data
September 2002.
nNot already have a CTF if born
between these dates.
Children with existing CTFs are
not, Smith adds, eligible as they
would otherwise be receiving dou-
ble tax efficient savings allowances
however, CTF limits have also
increased to 3,600 per annum from
November 2011. It may only be a
matter of time before CTFs are
merged into Junior Isas, although
the slow wheels of bureaucracy are
frustrating many.
FIRST PRIORITY
As Jason Hollands of F&C
Investments says: It makes sense
for parents to utilise their own Isa
allowances ahead of potentially
funding a Junior Isa, even if the
intention is to eventually utilise the
proceeds for the benefit of their
children (e.g. school or college fees).
He gives three reasons for this: a
lack of access, efficiency and con-
trol.
ACCESS TO THE FUND
Hollands explains that unlike
an adult Isa, which can be fully or
partially cashed in at any time,
money in a Junior Isa is tied up until
18 when the funds can be accessed
or converted into an adult Isa. This
makes Junior Isas ideal for saving up
for university costs, but less useful
as a school fees planning tool.
TAX EFFICIENCY
The tax benefits of an Isa are
more relevant for a working par-
ent, explains Hollands, particular-
ly a higher rate tax payer. After all,
few children earn more than the
personal allowance, which will rise
from 8,105 to 9,205 in April 2013.
PARENTAL CONTROL
The proceeds of a Junior Isa
legally belong to your children at 18
and their priorities e.g. a big party
may not be consistent with the
parents wishes, says Hollands.
Funds saved through an adult Isa
can be released to the child as and
A prodigal son wouldnt be comic
when the parents see fit. This last
point is critical. As Smith explains:
If 3,600 was contributed every year
for the next 18 years (a total of
64,800), which received a return of
5 per cent a year (after charges), the
Junior Isa will have grown to over
106,000 (before taking into account
inflation). Thats a fair chunk of
change for most 18 year olds to have
access to.
Adrian Lowcock of Bestinvest sug-
gests the following order of priority
for investors: Isa, Sipp or pension, fol-
lowed by a Junior Isa.
Although Junior Isas shouldnt be
the first port of call, saving for chil-
dren is a must especially given the
governments growing deficit and
debts. Michael Garvey of Edinburgh
Wealth Management believes the
bank of Mum and Dad will have to
continue to lend freely. He does the
sums:
nAnticipated cost of student debt for
a 2012 fresher: 59,100.
nAverage wedding cost: 15,500.
nAverage first time buyers deposit:
29,439.
nAverage graduate salary 25,500.
For those with the means, how
much money to give to your children
is a ubiquitous moral quandary
particularly for those who havent
always had it so good. Access to over
100,000 at the age of 18 could be
setting your children up for a fall.
That he or she will know to expect it
before undertaking A-levels or the
equivalent future examination is a
gamble.
Spiderman advises that with great
power comes great responsibility,
but in this instance his tingling spi-
der-sense might not be so keen.
Much will come down to predicting
the personality of your progeny. Not
a problem if you have a Peter Parker,
but if your 18-year-old child is closer
to Norman Osborn (Green Goblin)
you will end up wishing that you
had more control. Of course, if your
offspring turns out to have the per-
sonality of a green goblin, wasting
your money on a Junior Isa wont be
the top of your list of regrets.
Save like a superhero what to do
to protect your childrens future
38
cityam.com
Investors should use their
allowance if they want to
help with the likely costs of
education, weddings and
deposits, says Philip Salter
C
OLUMN inches are being
racked up, extolling the
virtues of getting your child a
Junior Isa. And surely nobody
could decry a tax wrapper
that aims to build a stash of cash for
the next generation? However, there
is a potential problem and its not
the abolition of the 250 cheque the
government handed out with Child
Trust Funds (CTFs). The problem is
that at the age of 18 your child will
have complete freedom to do whatev-
er he or she wants with the cash.
As Murray Smith of Mattioli
Woods explains, to be eligible for a
Junior Isa children must be resident
in the UK and:
nBe born on or after 3 January 2011.
nBe under 18 and born before
1
2
3
Thursday 29 March 2012
39
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
THE HONEYMOON MURDER
BBC1, 9PM
A Panorama report examining in detail
the hours leading up to the death of
Anni Dewani while on honeymoon in
Cape Town in 2010.
LOVE LIFE
ITV1, 9PM
Lucy is shocked when Joe comes to
see her at the caravan and tells her he
is leaving for Argentina. Drama,
starring Rob James-Collier.
MARYS BOTTOMLINE
CHANNEL4, 9PM
Its all hands on deck as Mary Portas
and the factory workers prepare for
the launch of Kinky Knickers at London
department store Liberty.
BBC1
SKY SPORTS 1
7pmLive Premier League Darts
10.30pmTime of Our Lives
11.30pmRingside 12.30am
Sporting Greats 1amPremier
League World 1.30amPremier
League Darts 5amPremier
League World 5.25am-6amLive
Test Cricket
SKY SPORTS 2
6pmATP Tennis 8pmLive ATP
Tennis 10pmATP Tour Uncovered
10.30pmNRL Fulltime 11pmThe
Rugby Club 12amLive ATP Tennis
2amRacemax 3amSuper
Leagues Supermen 4am-4.30am
NRL Fulltime
SKY SPORTS 3
5pmLive LPGA Tour Golf 8pm
Live PGA Tour Golf 11pmLive
LPGA Tour Golf 2.30am-4.30am
European Tour Golf
BRITISH EUROSPORT
6pmLive WTA Tennis 7.45pm
Live Figure Skating 9.15pmFigure
Skating 10.15pm-12.15am
Snooker
ESPN
7pmPress Pass 2012 7.30pm
Goal! Bundesliga Preview8pm
Live UEFA Europa League Football
10pmOff the Ball 10.30pmGoal!
Bundesliga Preview11pmPremier
League World 11.30pmPress Pass
2012 12amESPN Kicks: MLS
12.15amOff the Ball 12.45am
ESPN Kicks: Extra 1amUEFA
Europa League Highlights 2am
Freestyle FIS World Cup
Magazine 2.30amFIBA
Basketball 3amNBA Action
3.30am-6amLive NBA Basketball
SKY LIVING
7pmCriminal Minds 8pmRinger
9pmThe Biggest Loser USA
10pmCriminal Minds 11pm
Unforgettable 12amBones 1am
CSI: Crime Scene Investigation
2.40amMedium3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmThe Apprentice 8pmDont
Tell the Bride 9pmPramface
9.30pmWhite Van Man 10pm
EastEnders 10.30pmAngry Boys
11pmFamily Guy 11.50pm
American Dad! 12.35am
Pramface 1.05amWhite Van Man
1.35amWorld Series of Dating
2.05amGambling Addiction &
Me: The Real Hustler 3.05am
Dont Tell the Bride 4.05am-5am
I Never Said Yes
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pmRules of
Engagement 9pmHow I Met
Your Mother 9.30pmHappy
Endings 10pmThe IT Crowd
10.30pmPhoneShop 11pmPete
Versus Life 11.35pmThe Big Bang
Theory 12.30amScrubs 1.30am
How I Met Your Mother 2am
PhoneShop 2.25amPete Versus
Life 2.55amRules of Engagement
3.15amGreek 4amUgly Betty
4.40am-6amSwitched
HISTORY
7pmAmerican Restoration
7.30pmPawn Stars 8.30pm
American Restoration 9pmIRT
Deadliest Roads: The Andes 10pm
Mud Men 11pmPawn Stars
11.30pmAmerican Restoration
12.30amPawn Stars 1amIRT
Deadliest Roads: The Andes 2am
Ice Road Truckers 3amMud Men
4amRoman Invasion of Britain
5am-6amAmerican Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmWheeler Dealers 9pm
Licence To Drill 10pmX-Machines
11pmStan Lees Superhumans
12amBear Grylls: Born Survivor
1amLicence To Drill 2am
X-Machines 3amWheeler Dealers
3.50amMythbusters 4.40am
More Industrial Revelations
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pm18 Kids
and Counting 9pmI Didnt Know I
Was Pregnant 10pmThe Real ER
11pmTrauma Unit 12amI Didnt
Know I Was Pregnant 1amThe
Real ER 2amTrauma Unit 3am
Supernanny US 4amA Baby
Story 5am-6amBaby Days
SKY1
7pmThe Middle 7.30pmModern
Family 8pmThe Simpsons 9pm
Glee 10pmHouse 11pmNCIS: Los
Angeles 12amDog the Bounty
Hunter 1amThe Real A&E 1.55am
Big Trouble in Thailand 2.50am
MacIntyre: Worlds Toughest
Towns 3.40amDom Jolys Happy
Hour 4.35amCrash Test Dummies
5.05am-6amOops TV
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmWatchdog
9pmCHOICE The Honeymoon
Murder
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time
11.35pmThis Week 12.20am
Skiing Weatherview12.25amSign
Zone: Murdochs TV Pirates
Panorama 12.55amCountryfile
1.55amHidden 2.55amOrbit:
Earths Extraordinary Journey
3.55amBritains First Photo Album
4.25am-6amBBC News
6pmJust a Minute
6.30pmEggheads
7pmThe Hairy Bikers
Bakeation: Si King and Dave
Myers bake their way across
Germany.
8pmNatural World: Queen of
the Savannah: The life of the
African honeybee queen.
9pmWhite Heat
10pmThe Sarah Millican
Television Programme
10.30pmNewsnight: Weather
11.20pmThe Tube
12.20amMedium
1.05amMedium1.45amBBC News
3am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmBamber The New
Evidence: Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmCHOICE Love Life
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Jonathan Ross Show
11.35pmTake Me Out: Another
batch of hopefuls takes part.
12.30amThe Zone; ITV News
Headlines 2.35amBamber The
New Evidence: Tonight 3amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmGet Your House in Order
9pmCHOICE Marys Bottom
Line
10pmDeath Row
11pmRandom Acts
11.05pmEmbarrassing Bodies
12.10amThe Shooting Gallery:
China
1.05amChina: Triumph and Turmoil
2amRare Chicken Rescue 2.30am
The Bible: A History 3.25amThe
Crucified Soldier 4.20amTime
Team5.15am-6amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmHoliday Heaven on Earth
7.25pmUltimate Police
Interceptors
7.55pmLive UEFA Europa
League Football: Schalke 04 v
Athletic Bilbao (Kick-off
8.05pm).
10pmFILMChaos: Thriller,
with Jason Statham. 2005.
12.10amSuperCasino
4amHouse Doctor 4.25am
Wildlife SOS 4.45amWildlife 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
11 9 10
6 23 7
13 11
19 17
12 9
45
22 14
29 21
13 10
4 7 13
10 24 9
9
11
12
37
26
3
23
30
30
10
8
8
21
27
14
5
28
23
10
16
17
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Design made of
small pieces of
coloured stone (6)
6 Lessen the density
or solidity of (6)
8 Store selling
childrens
playthings (7)
9 Try out (6)
10 Make free of ice (7)
13 Flow back (3)
14 Conspicuous
success (3)
17 Timidity (7)
20 Island to the north
of Java (6)
21 Daybreak (7)
22 Not if (6)
23 Firstborn (6)
DOWN
1 In a softened tone (5)
2 Assimilate or
take in (6)
3 Emblem of
Christianity (5)
4 Notwithstanding (7)
5 ___ Cup, golf
tournament played
every two years (5)
7 Absence of emotion
or enthusiasm (6)
11 Feverish (7)
12 Be constantly talking
or worrying about
something (6)
15 Hardened to (6)
16 Around (5)
18 Accommodate (5)
19 Perfume (5)
R
U
M
O
I T
P
E
S
4
4
4

B A N G L E S I L T
O A O H I
L S O U T H E A S T
T W A D L U
S A L T E D T Y R O
T A R I S E F
S T U N G A R R E T
L G T I R E
S E L E C T I O N X
I N R G A
P A C T L E S S O N
8 9 5 3 8 1
1 2 4 8 4 7 9 6
9 6 8 5 1 4 6 2
4 6 3 8 2 1
2 1 2 7 9 8 5
1 5 1 3 2 5 1
7 9 8 6 1 9 2
7 1 9 5 2 3
7 6 9 4 8 6 7 9
4 1 5 2 3 3 4 1
9 5 7 9 1 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
DISEMBARK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
Shoot shoot kill throw slash. Crap,
more zombies. Shoot shoot shoot.
OMG a big thing with a giant eye
on its shoulder.
If youre short on time, this sen-
tence pretty much sums up
Operation Raccoon City, the latest
installment in the 16-year-old
Resident Evil franchise.
The new spin is that youre part
of a team employed by the evil
Umbrella Corporation, sent to
destroy evidence of its involvement
in the zombification of the world.
Its a nice hook that soon gets lost
amid Raccoon Citys
ceaseless blasting of the
undead.
You wont find any of
the suspense horror
that made earlier
installments so terrify-
ingly playable this is a
by-the-numbers line-
em-up-and-blast-em-up
thats high on body-
count but low on scares.
While clearing room after room
of lumbering zombies has a certain
charm, the action isnt without its
drawbacks. If you try running in a
direction the game doesnt like, for
example, youll just jog against an
invisible wall, which can be very
frustrating when a big thing with a
club is bearing down on you.
The AI is, rather unhelpfully, set
to kamikaze and in later mis-
sions youll spend as much time
running around trying to resusci-
tate your teammates as you do
fending off waves of weaponised
zombies. It plays a bit like an old-
fashioned arcade shooter (crouch,
shoot, reload, repeat), with none of
the finely tuned combat seen in
games like Crysis, nor the sheer
mindless joy of Dead Rising (a
game that parodies exactly the
kind of relentless slaugh-
ter presented here with-
out a trace of irony).
There are plenty of diver-
sions down memory lane
for long-term Resident Evil
fans. For everyone else,
Operation Raccoon City is
below-par shooter you
could quite easily ignore.
cityam.com
40
Its the clash of the horror titans as Resident Evil and Silent Hill go head to head
Time to invest in new pants
The new Silent Hill has a lot to live
up to. For many gamers it was the
first title that not only made them
jump but got under their skin;
that made them look over their
shoulder while playing and sleep
with the lights on.
In this installment your
character finds himself lost in the
titular ghost town after an
accident on his way to a
maximum security prison.
Downpour is at pains to prove it is
a mature title. The somewhat
gratuitous introduction forces you
to stab a naked prison inmate to
death (a
paedophile,
you assume
you can tell by
his face).
But the
horror starts in
the town itself:
you see flashes
of figures in
windows, people vanish into the
swirling mists. The beauty of
Silent Hill is that not a great deal
happens: the terror is created by
the possibility of something
happening. It borrows heavily
from the book of horror cliches
creeping through basements with
only a cigarette lighter to guide
you, the distant sound of ghostly
children laughing and uses
them to chilling effect. Theres
nothing startlingly original here
but that wont stop it scaring the
hell out of you. The ability to look
over your shoulder, allowing you
to catch a glimpse of whatever
might be creeping up behind you,
is a master stroke.
Alas, it falls down on the
gameplay. Fighting is a clunky
affair that will have you weeping
bitter tears of frustration. The
games insistence on locking onto
a single opponent makes fighting
multiple enemies nigh on
impossible. But the world itself is
(just) enough to compensate. After
a few minutes playing in the dark,
I sheepishly got up to switch the
light on. In a market saturated
with mediocre horror titles,
thats a rare seal of approval.
LIFESTYLETECHNOLOGY
WORDS BY
STEVE DINNEEN
THE GAMES THAT GAVE US GOOSEBUMPS
BY STEVE DINNEEN
Alone in the Dark (1992)
The original horror puzzler. The memory of being chased
down a long, candle-lit corridor by a ghostly creature still
makes me shudder. Alone in the Dark perfectly struck the
balance between suspense and action. A classic for a reason.
Doom (1993)
Wolfenstein may have come before it but Doom perfected
the formula. It was the first jump-out-of-your-skin shoot-
em-up and it still influences gaming today. The sounds of
demons groaning in the distance was creepy as all hell.
Dead Space (2008)
One of the few first person shooters of the last few years that
can truly be called a horror classic. This Alien-inspired space
odyssey not only makes you jump it sends your heart rac-
ing and palms sweating every time you open a door.
The ghostly world of Silent Hill: Downpour (left) offers more scares than the zombie gore-fest of Resident Evil: Operation Raccoon City (right)
GAMES
SILENT HILL: DOWNPOUR
Cert: 15
hhhhi
GAMES
RESIDENT EVIL: OPERATION
RACCOON CITY Cert: 15
hhi ii
Zombies take
over St Pauls
Mindless, lumbering creatures were drooling
onto the steps of St Pauls last weekend. Not
again you might sigh. But dont worry the
protestors havent moved back in.
Resident Evil: Operation Raccoon City
maker Capcom organised a real-life zombie-
hunt to promote the launch of its new title.
Fans were invited to download an
augmented reality app leading them to the
scene of a zombie infestation, where they had
to blast waves of the undead with their
phones before finding a computer and erasing
the all important
evidence (see
review left).
While blasting
away at virtual
monsters, real life
blood-suckers (or
at least actors very
convincingly
dressed up)
showed up to
chase them
around.
The final
location on the
apps radar led to
the Umbrella Corporation HQ, where zombie
hunters were handed rifles loaded with
rubber discs and told to mow down one last
wave of the undead.
I was rather chuffed when my name (albeit
briefly) appeared on the apps in-built
leaderboard. My bubble was suitably
deflated, though, when one young gamer
gawped at me before asking: Do they still
make games for people in your age range?
I hope zombies eat his brains.
Ecstatica (1994)
If Doom was a slasher horror then Ecstatica was a surreal
psychological thriller. It created an atmosphere of impend-
ing terror despite being constructed entirely of bulbous
spheres. Make sure the wolf doesnt catch you...
Reducing complexity has never been simpler.
Designed for growing business, the IBM System x3650 M3 Express server with the latest
Intel
Xeon
processor 5600 series can help you simplify your IT infrastructure. With
simple start-up, intuitive management and tool-less design, this server is easy to deploy
and managewhether your IT infrastructure is physical or virtual, onsite or remote.
Additionally, you get the valuable expertise of IBM Business Partners to create an IT
environment optimised to keep up with tomorrow, today.
Rated No.1 in Server Customer Satisfaction by TBR for the 9
th
consecutive quarter
1
.
1
TBR 3Q11 x86-Based Servers: Corporate IT Buying Behavior & Customer Satisfaction Study, November 2011.
2
Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering availability subject to credit approval; for more details and full Terms
and Conditions please visit: http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html Rates and offerings are subject to change, extension or withdrawal without notice. Prices
include VAT at a rate of 20%. IBM hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product
warranties, visit http://www.ibm.com/servers/support/machine_warranties. IBM makes no representation or warranty regarding third-party products or services. IBM, the IBM logo, System Storage
and System x are registered trademarks of International Business Machines Corporation registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or
other companies. For a current list of IBM trademarks, see www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other
countries. All prices and savings estimates are subject to change without notice, may vary according to configuration, are based upon IBMs estimated retail selling prices as of 01/01/2012 and may
not include storage, hard drive, operating system or other features. Reseller prices and savings to end users may vary. Products are subject to availability. This document was developed for offerings
in the United Kingdom. IBM may not offer the products, features, or services discussed in this document in other countries. Contact your IBM representative or IBM Business Partner for the most
current pricing in your geographic area. 2012 IBM Corporation. All rights reserved.
Find a system that fits
your business.
IBM System x3650 M3 Express
1,623 incl. VAT
OR 45/MONTH OVER 36 MONTHS
2
PN: 7945KMG
IBM System x3550 M3 Express IBM System Storage DS3524 Express
3,704 incl. VAT
2
PN: 1746A4S
External disk storage with 6GB/s Serial Attach SCSI (SAS) interface
technology
Scalable up to 48TB with 500GB NL-SAS 2.5" drives
Support for 96 drives with combination of EXP3512 or EXP3524 expansion
enclosures
Field upgradeable with FC or ISCSI host interface cards
Self encrypting drive options available for secure data at rest
DS3512 also available with 3.5" drive support
Intel Xeon 5620 processor (2.4GHz four-core), maximum of two
processors
Up to 192GB Registered Dual Inline Memory Modules (RDIMMs) or
48GB UDIMMs high-performance, new generation Double Data Rate 3
(DDR-3) memory
Internal storage flexibility with up to sixteen 2.5" hot-swap Serial
Attached SCSI (SAS)/Serial Advanced Technology Attachment (SATA)
HDDs or SSDs
Up to four PCIe slots
Intel Xeon 5606 processor (2.13GHz four-core), maximum of two
processors
Up to 192GB Registered DIMMs (RDIMMs) or 48GB UDIMMs
high-performance, new generation Double Data Rate 3 (DDR-3) memory
Internal storage flexibility with up to eight 2.5" hot-swap Serial Attached
SCSI (SAS)/Serial Advanced Technology Attachment (SATA) HDDs or
Solid State Drives (SSDs)
or x3650M3 Search
Visit: ibm.com/systems/uk/express1
Contact the IBM Team to
help you connect to the right
IBM Business Partner.
0800 028 6282
1,155 incl. VAT
2
PN: 7944KAG
42
SPORT
cityam.com/sport
MAJOR League Baseball bosses are
interested in staging matches at
Londons Olympic Stadium as part
of a first foray into Europe.
High-profile basketball and
American football contests have
already been staged in the capital
with great success, and baseball
wants to follow suit.
That [London Olympic] stadium,
the way its built, actually is big
enough for a baseball game, said
Clive Russell of MLB International.
Its not perfect, but it has some
real potential.
MLB has registered interest with
the Olympic Park Legacy Company
in using the stadium once it is
converted following this summers
Games. Football club West Ham
have also bid to use the arena.
G
E
T
T
Y
FOOTBALL ASSOCIATION chiefs are
cooling on appointing Tottenhams
Harry Redknapp as England manager,
with West Broms Roy Hodgson and
former national boss Glenn Hoddle
considered increasingly credible alter-
natives, City A.M. understands.
Redknapp has been the overwhelm-
ing favourite for the top job since last
month, when he was acquitted of tax
evasion on the same day that Fabio
Capello resigned in protest at the FAs
decision to strip John Terry of the
England captaincy.
The 64-year-old is on course to lead
Spurs into the Champions League for a
second time, having made history by
masterminding their qualification two
years ago, and is a popular choice
among fans and pundits alike.
Results at White Hart Lane have
slipped since Christmas but it is
believed that some at the FA also
harbour doubts that Redknapp
has the right profile for the role.
That has seen Hodgson and,
remarkably, Hoddle consid-
ered as viable choices.
Both have gone public
with their eagerness to
take over for this sum-
mers European
Championship.
The FA have delayed
a decision until the
end of the season, but
Capellos successor will need to be in
place before Englands first Euro 2012
warm-up in less than nine weeks time.
Hodgson, who has continental expe-
rience from spells in charge of Inter
Milan and Switzerland, has said the
England job would be an honour.
Ex-Chelsea and Tottenham coach
Hoddle, who was sacked by the FA in
1999 over controversial comments
about the disabled, has not managed
since quitting Wolves in 2006, but this
week put himself forward for an
extraordinary return. If I were to die
tomorrow, my life would be incom-
plete, he said.
Caretaker manager Stuart Pearce is
keen to stay on for Euro 2012 but
admits he does yet not have the experi-
ence to take the job permanently.
n FORMER England manager Terry
Venables has made a shock return
to football as technical advisor of
non-league Wembley FC. The 69-
year-olds contract is being
bankrolled by beer giant
Budweiser, who last week
agreed to sponsor the club,
who play in the ninth tier.
Ex-Tottenham and
Barcelona boss
Venables said: If they
are willing to learn,
Im willing to teach.
Vieira: Man Utd get
more help from refs
MANCHESTER CITY chief Patrick
Vieira has reignited his war of words
with Premier League title rivals
Manchester United by claiming the
champions get preferential
treatment from referees at Old
Trafford.
Vieiras comments come after
Fulham were denied a potentially
decisive penalty late in Mondays 1-0
defeat at United, despite Sir Alex
Ferguson admitting Danny Murphy
had been caught by Michael
Carrick.
When United play at home they
get some advantage that other teams
dont get, said former Arsenal
captain Vieira, now Citys football
development executive.
When you go to United, [Real]
Madrid, Barcelona, or [AC] Milan, its
BY FRANK DALLERES
always difficult for the referee to go
against these kind of teams. This is
the way it is. Its something teams
who are used to winning get all the
time, so we need to win games so we
have this advantage in the future.
Vieira riled United manager
Ferguson last week when he
suggested bringing veteran Paul
Scholes out of retirement was a sign
of desperation.
Ferguson, no stranger to mind
games himself, swiftly retorted that
City had shown their own weakness
by recalling rebel striker Carlos
Tevez, who fled to his native
Argentina for five months after a
row with boss Roberto Mancini.
Mondays win lifted United three
points clear of City, with eight games
remaining, including a pivotal
Manchester derby at the Etihad
Stadium on 30 April.
IN BRIEF
Saracens boost to Copthall move
n RUGBY UNION: Saracens expect to
receive the green light to move to
Barnets Copthall Stadium in a matter
of days after the Secretary of State for
Communities and Local Government
approved the plans. The decision
paves the way for Barnet Council to
formally issue planning permission to
the Premiership champions, who
currently play at Watford FCs
Vicarage Road. An 18m revamp will
create a 10,000-capacity ground and
see Saracens become the first
professional club to play on an
artificial pitch.
Racing icon Jordan awarded OBE
n FORMULA ONE: Former driver and
team owner Eddie Jordan has been
awarded an honorary OBE for services
to charity and motor racing. The
charismatic Irishman, who celebrated
with a Guinness yesterday, hours after
watching his beloved Chelsea win in
Lisbon, said: I am hugely surprised
and greatly overjoyed.
BY FRANK DALLERES
ENGLANDS rugby players would be
disappointed to a man if interim
head coach Stuart Lancaster is not
handed the job permanently, back-
row Phil Dowson has warned.
Lancaster has revitalised a
dispirited England set-up in just
three months and led a new-look
side to four wins from five in the Six
Nations earlier this month.
Rookie Lancaster, who has never
coached a top club, faces
competition from decorated former
South Africa and Italy boss Nick
Mallett.
The Rugby Football Union is
expected to make an announcement
imminently and Dowson has left
them in no doubt which man the
players want.
If you asked the whole squad, to a
man they would say theyve got faith
in the coaches, said the
Northampton forward. The proof is
in the results. I think all the players
would be disappointed if it wasnt
Stuart Lancaster.
Previously coach of Englands
second-string Saxons team,
Lancaster, 42, promoted a number of
his protegees with great success and
won praise for fostering a strong
collective mentality.
Dowson added: There are a lot of
psychological things he did
meetings during training, before
games and after games and I think
the players responded to that and I
think the results were borne out of
that.
Leicester fly-half Toby Flood, who
did not feature heavily due to fitness
concerns and the form of young
Saracens back Owen Farrell, praised
Lancasters excellent job.
He created an environment
where all the boys were keen to work
hard for each other, Flood added. If
you take into account what he has
managed to do in such a short space
of time then he has to get the job.
Flood conceded, however, that
new RFU chief executive Ian Ritchie
had a difficult choice to make.
The RFU have to take all sorts of
things into account such as
experience and knowledge of
players, things that we do not know
about as players, he said. But Stuart
certainly did himself no harm at all.
BY FRANK DALLERES
Lancaster is
players choice
for England,
says Dowson
Ex-Saxons coach Lancaster led England
to four wins from five in the Six Nations
AC MILAN defied expectations to keep Champions League holders Barcelona at bay and
earn a 0-0 draw in the first leg of their quarter-final in Italy last night. Milans former
Barca striker Zlatan Ibrahimovic (above right) might even have grabbed a surprise win
and set up a likely semi-final against Chelsea but scuffed a good first-half opening.
MILAN SMOTHER BARCELONA
Baseball chiefs
hold Olympic
Stadium talks
Redknapp was initially
the overwhelming
favourite for the England job
EXCLUSIVE
BY FRANK DALLERES
FA cooling on
Redknapp as
door opens for
Hoddle return
G
E
T
T
Y
43
Englands biggest run chases in Test matches:
332-7 v Australia (1928-9), 315-4 v Australia (2001),
307-6 v New Zealand (1996-7)
cityam.com
G
E
T
T
Y
SPINNER Graeme Swann insists
England will resume this morning as
favourites to win the first Test in Sri
Lanka, despite needing to achieve
their highest ever run chase in 135
years of cricket history.
The tourists also lost openers
Alastair Cook and Andrew Strauss
early in their second innings,
although batsmen Kevin Pietersen
and Jonathan Trott guided England
to 111-2, 229 runs behind the hosts.
Earlier on day three Sri Lanka had
frustrated England by putting on 87
for the last two wickets to reach 214,
meaning Strausss men must eclipse
by eight runs the 332 chased down
against Australia in 1928 to win.
It would be only the fourth time
England have successfully chased
more than 300, and with a batting
line-up that has exceeded 200 only
twice in seven winter innings.
But Swann said: Id say were just
favourites. I dont like statistics. Just
because somebody won a game in
1912 chasing 290 or someone got 350
in the Kerry Packer era doesnt mean
anything. This is 2012. History is
there to be rewritten.
Sri Lankas Prasanna Jayawardene
disagreed: We have the
psychological advantage because
they need to score more than 300.
Swann completed his 12th five-for
after Sri Lanka resumed on 84-5, and
the hosts might have been dismissed
for 167, had paceman Stuart Broad
not been belatedly penalised for a no-
ball, having caught and bowled
wicketkeeper Jayawardene.
That would have set England a
more attainable target of 293, but
instead the hosts magnified
Englands frustration by adding 47,
Jayawardene contributing a
damaging 61 not out.
Cook (14) and Strauss (27) both fell
to nemesis Rangana Herath, who
claimed six first-innings scalps, after
tea, but Trott (40 no) and Pietersen
(29 no) gave England faint hope.
BY FRANK DALLERES
0844 847 2492 Or visit ticketmaster.co.uk
*Available only when you buy a 50 ticket for the Aviva Premiership Rugby Final 2012. Offer applies to selected 50 tickets only. Offer is subject to availability and only while stocks last.
*
Book your place amongst 81,601 true fans and enjoy rugby at its
very best. Buy now to get a limited edition shirt with your ticket.*
AVIVA PREMIERSHIP RUGBY FINAL
TWICKENHAM MAY 26
LIM
ITED
O
FFER
FR
E
E
S
H
IR
T
Were the favourites,
says Swann, despite
a record run target
Pietersens 29 not out gave England a glimmer of hope for a record run chase
Results
=FFK98CC
L<=8:?8DG@FEJC><HKI$=@E8C(JKC<>
8:D`cXe%%%%%%%%%%%%%%%% ' ' 9XiZ\cfeX%%%%%%%%%%%%%%%%%% ' '
DXij\`cc\%%%%%%%%%%%%%%% ' ' 9Xp\ieDle`Z_%%%%%%%%%%( )
EGFN<IC<8>L<(
J_\]]Lk[%%%%%%%%%%%%%%%%( + :_\jk\i]`\c[%%%%%%%%%%%%%%%( (
:I@:B<K
=@IJKK<JKD8K:?
Ji` CXebX m <e^cXe[ ;Xp*f],
>8CC<1<e^cXe[#n`k_ \`^_k j\Zfe[$èeè^jn`Zb\kjè _Xe[#
i\hlì\ ))0 ilej kf Y\Xk Ji` CXebX
JI@C8EB81=ìjk@eeè^j *(/ (D P V D J+]+W+rere
8O, Arersar 5Z)
<E>C8E;1=ìjk@eeè^j (0* (Be|| 5Z, Her+t| o4)
JI@C8EB81J\Zfe[@eeè^j
(O1err||t 845)
l O|+r|m+| c P|eterser | P+res+r ....................................................J
S R+r|1 ||WSW+rr................................................................................ 8
H J+]+W+rere rat aat............................................................................o
H Her+t| | SW+rr........................................................................................
U we|ee+r+ c Str+ass | P+res+r ....................................................J
R l+|m+| rar aat ........................................................................................J
B ||4 W r|4.................................................................................. O
Tat+| (84.J a1ers) ........................................................................Z4
=Xcc1 4, 8, 4, 4, Z, 4, 5, Z, o.
9fncè^1 Arersar O.JZZoO, Bra+ ZJJ, SW+rr
JO58Zo, P+res+r Z4o59Z, P+te| 949O.
<E>C8E;1 J\Zfe[ @eej
A Str+ass c D||s|+r | Her+t| ............................................................... Z
A Oaa| c H A P wJ+]+W+rere | Her+t|......................................4
l Tratt rat aat.............................................................................................4O
K P|eterser rat aat...................................................................................Z9
l|............................................................................................................
Tat+| (Z W|ts., 4O a1ers)............................................................
=Xcc1 J, 48.
9fncè^1 we|ee+r+ 5ZoO, l+|m+| J9O, Her+t|
5J5ZZ, D||s|+r 94O, R+r|1 89O.
Ldgì\j1 A R+af & R Tac|er.
KF;8PJ;@8IP
<lifgXC\X^l\HlXik\i=èXc=ìjkC\^
AZ A||m++r 1 V+|erc|+ (8.O5)......................................................................
At|et|ca V+r| 1 H+rra1er (8.O5)............................................................
Sc|+||e 1 At||et|c B|||+a (8.O5) .................................................................
Spart|r l|s|ar 1 Vet+||st K|+r||1 (8.O5).............................................

Cityam 2012-03-29

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Cityam 2012-03-29

Transféré par

Droits d'auteur :

Formats disponibles

A

In terms of outlook, Icap has seen an improvement in risk appetite in

WHAT DO YOU MAKE OF

SARAH ING SINGER CAPITAL MARKETS

NESE GUNER CITIGROUP

ARE YOU WORRIED ABOUT THE UKS FUEL SUPPLY?

Im very worried about it because if they strike, no one

it now costs less than ever to buy through Fidelity. So,

growth funds invest are not sub-

Vous aimerez peut-être aussi