Cityam 2011-06-22

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Cass Masters
Im not waiting for the upturn,
Im making it happen.
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FTSE 100 5,775.31 +81.92 DOW 12,190.01 +109.63 NASDAQ 2,687.26 +57.60 /$ 1.62 -0.002 / 1.13 +0.004 /$ 1.44 +0.01
JP Morgan
pays out on
fraud probe
BANKING giant JP Morgan has agreed
to pay $153.6m (94.6m) to the US reg-
ulators to resolve an investigation into
the selling of risky mortgages at the
height of the financial crisis, though
it has not admitted liability.
The Securities and Exchange
Commission (SEC), Wall Streets
watchdog, had filed civil fraud
charges against the bank for allegedly
misleading investors who bought
mortgage securities it helped to sell.
The New York-based bank had
helped to put together a collateralised
debt obligation (CDO), a form of
investment package, without inform-
ing investors that a hedge fund had
helped to select some of the mortgage-
based assets backing the product.
The hedge fund, Magnetar Capital,
had bet the assets would lose value.
Magnetar had helped to select
mortgages to be included in the CDO,
marketed under the name Squared,
whilst investors were told an inde-
pendent firm, GSC Capital, had select-
ed the securities.
The SEC also filed civil charges
accusing Edward Steffelin, a former
managing director at GSC Capital, for
failing to reveal in marketing materi-
als for the transaction Magnetars
involvement.
JP Morgan agreed to settle with the
regulator, reimburse investors who
lost money and improve the way it
approves mortgage securities transac-
tions. No executives at the bank have
been charged in the probe.
BY RICHARD PARTINGTON
BANKING
George Osborne was speaking following a vist to Luxembourg to meet Eurozone leaders and ECB president Jean-Claude Trichet Pic:AP
THE chancellor, George Osborne, has
given the cabinet a deeply pessimistic
briefing on the outlook for Greece, City
A.M. has learned.
Osborne told senior colleagues,
including the Prime Minister David
Cameron and foreign secretary
William Hague, that the situation in
the stricken country was very seri-
ous at a cabinet meeting yesterday
morning.
City A.M. understands the chancellor
offered little hope that the Eurozone
would be able to find a solution to the
worsening crisis.
The chancellors comments come a
day after Mark Hoban, the Treasury
minister, refused to say whether the
government thought the euro would
survive the sovereign debt crisis dur-
ing a Commons debate.
Osborne reiterated that the UK gov-
ernment would not contribute to any
kind of Eurozone-led bailout, although
it could be forced to stump up its share
of any further loans from the IMF.
OSBORNE BLEAK ON
GREECE PROSPECTS
BY DAVID CROW AND JULIET SAMUEL
EUROZONE
www.cityam.com Issue 1,408 Wednesday 22 June 2011 FREE

CITY A.M.
AWARDS
SHORTLIST FOR
TRADER OF THE
YEAR P20
FOSTERS SPURNS A BID
FROM SABMILLER
6BN TAKEOVER REJECTED P4
BUSINESS WITH PERSONALITY
The chancellors downbeat outlook
comes despite Greece being granted a
temporary reprieve last night as Prime
Minister George Papandreou won a
knife-edge no-confidence vote in par-
liament, enabling Athens to press
ahead with an austerity programme
that is a condition of its rescue funds.
Papandreou avoided a catastrophic
defeat on the back of his slim majority
in parliament, with his ruling Socialist
party narrowly defeating the alliance
of far-left and centre-right parties by
155 votes to 143, with two abstentions.
The euro rose as high as $1.4435
immediately following the vote, after
falling earlier in the day.
But Greeces political troubles are
far from over. Parliament will now
spend the next week debating the
28bn (24.8bn) of additional budget
cuts that it must pass on 30 June in
order to qualify for its next 12bn
tranche of aid from the IMF and EU.
If it does not receive the aid, which
is part of the 110bn bailout it was
promised last year, the sovereign will
go bankrupt in July.
Markets saw a relief rally through-
out the day on the expectation of a vic-
tory for Papandreou, with the FTSE
100 closing up 1.44 per cent, the
Eurostoxx 50 gaining two per cent, the
Dow rising 0.9 per cent.
MORE ON EUROZONE: P3
WEALTH MANAGEMENT: P23
Certified Distribution
02/05/11 till 29/05/11 is 103,467
Euro rises after Greek
PM George Papandreou
wins key confidence
vote late last night
News
2 CITYA.M. 22 JUNE 2011
Misys finally
admits to bid
MISYS surged almost nine per cent
yesterday after confirming it has
received a preliminary bid.
One analyst described the move as
the end game for the firm, which
has been subject to takeover specula-
tion for almost a year. The unnamed
suitor is thought to be a US-listed
financial software firm, with Merrill
Lynch understood to be advising.
Financial terms were not disclosed
but analysts say an offer could be
between 450p to 500p a share, a pre-
mium of up to 20 per cent on its clos-
ing price of 419p yesterday, which
valued it at 860m.
Misys, which competes with com-
panies including Temenos, Fidelity,
Fiserv and SunGard, has seen its
share price climb more than a third
since bid rumours began to circulate.
Fiserv and Fidelity have both been
named as possible buyers, with some
analysts suggesting an unnamed
Indian firm could also be interested.
In a statement Misys said: The
board confirms it has received a pre-
liminary approach that may or may
not lead to an offer being made.
Misys has brought in Barclays
Capital as its adviser on the deal. Its
usual broker is Deutsche but a source
close to the company told City A.M. the
firm has worked with a number of
banks over the last 12 months.
BY STEVE DINNEEN
TECHNOLOGY
UK public finances still in sorry state

SLOWLY but surely, the government is
regaining control over public spend-
ing. Yet there is still a long way to go:
the deficit, believe it or not, has actu-
ally been higher so far this financial
year than it was during the same two-
month period of 2010.
This deeply depressing fact shows
just how detached from reality much
of the political and media debate has
become, where it is widely assumed
that massive cuts have already taken
place. But while it is true that spend-
ing increases are gradually becoming
less pronounced, austerity still
remains more of a goal than the actu-
al reality in Britain today.
Central government current spend-
ing in April-May, the first two months
of the new financial year, was 4.1 per
cent higher in cash terms than during
the same months of 2010. The official
inflation rate used for the public sec-
tor is just 2.9 per cent (it is lower than
the usual consumer or retail price
indices) so spending still grew in real
terms by over one per cent. So much
for the massive, reckless cuts that
are supposed to have taken place.
But there were also signs that
spending is finally being tightened in
other areas: public sector net invest-
ment during April and May 2011 was
five per cent lower in cash terms than
in the same two months of 2010.
Current spending grew by just 2.3 per
cent in May, though monthly figures
are even less meaningful that the two-
monthly ones. So progress is being
made at trying to ensure that Britain
starts living within its means once
again, albeit too slowly.
Depressingly, public sector net bor-
rowing (excluding financial interven-
tions) was 27.4bn so far during
2011-12, up substantially from 25.9bn
in the same period last year. Two
months dont make much of trend, of
course, and borrowing in May alone
was down 1.1bn on the previous year.
It would be interesting, however, to
know what Ed Balls, the shadow chan-
cellor, would be doing differently
would he be increasing the national
debt that we will be bequeathing our
children and grand-children at an
even faster rate?
The reason why the deficit
increased was that spending rose
faster than tax revenues. Receipts in
April and May were just three per cent
higher in cash terms than in the same
months of 2010. If this were a fair
reflection of the situation, Britain
would truly be in crisis. Fortunately
for George Osborne, April 2010 figures
were flattered by 3.5bn worth of
receipts from the temporary Bank
Payroll Tax. Excluding these suggests
that underlying receipts grew by 7.8
per cent in April and May 2011 com-
pared to the same two months a year
ago, a much healthier trend.
Yet the overall picture remains
grim. Even on the official measure,
which excludes off-balance sheet
items, public sector net debt was
920.9bn (60.6 per cent of GDP) at the
end of May 2011. This compares to
778.9bn (53.8 per cent of GDP) as at
the end of May 2010. Again, this
demolishes the sloppy claim that is
still so often heard that the coalition
is paying down the national debt. It
isnt.
So far this year, spending is still ris-
ing, the deficit is increasing and the
national debt is soaring. The good
news is that this miserable situation
will probably start to improve over the
next few months. But until we actual-
ly see better numbers, it will remain
too early to declare Britain back on the
path to fiscal sanity.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
INSURANCE giant Aviva is close to
selling the RAC, the roadside rescue
business it owns.
Two private equity firms are in the
final stages of bidding for the compa-
ny, Sky News reported last night.
Three buyout firms had put up
final offers several days ago, includ-
ing BC Partners, Carlyle Group and
Clayton Dubilier & Rice.
The sale of RAC, which is being
handled by JP Morgan, is expected to
net Aviva anywhere up to 900m.
The insurer bought the RAC in
2005 for 1.1bn. Since then, it has
packaged off and sold parts of its
business, such as the BSM motoring
school and Auto Windscreens.
An announcement on the sale is
expected by the end of this week at
the earliest.
Aviva put the business up for sale
earlier this year as part of a wider
restructure of the group. The firm
declined to comment last night.
M&A
Aviva nears RAC disposal

VINCE Cable has asked economist
John Kay to review Britains stock mar-
kets, as the business secretary steps up
his attack on corporate short termism.
Kay, formerly head of the Institute
for Fiscal Studies, will chair the equity
market review, which reports in 2012.
As part of the review, Kay will look
at how to get institutional investors
more involved in the running of the
companies in which they hold shares
in order to minimise short-termism.
Cable will use a speech to the
Association of British Insurers later
today to announce the review and
Kays appointment.
The financial crisis has raised justi-
fiable concerns about whether there
are systemic flaws in the way compa-
nies are owned and managed in the
UK, he is expected to say.
Cable appoints
Kay to head up
market review
Aviva chief Andrew Moss is close to selling off the RAC
FINANCIAL MARKETS
EDITORS LETTER
ALLISTER HEATH
7
th
Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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Misys chief exec Mike
Lawrie has overseen a
major restructuring of
the firm since taking
the reins in 2006
JUSTICE SHAMBLES ATTACKED BY
LABOUR
The coalitions strategy on criminal
justice was said to be in shambles
yesterday after the government
scrapped its cost saving plans to halve
prison sentences for offenders who
plead guilty. Ken Clarke, justice secre-
tary, came under fire for creating a
130m hole in his departmental budg-
et.
MADOFFS YACHT IN THE MONACO
SALES
For the great and the good of the
hedge fund world gathered in Monaco
this week, only one trade is worth dis-
cussing: Bernard Madoffs yacht.
The 90ft powerboat, one of the fastest
ever built, is being discreetly
offered for sale for 3m (2.7m) this
week at the Gaim conference, an
annual event for the European hedge
fund industry.
DIRECTORS AT C&W WORLDWIDE SEE
PAY CUT
Cable & Wireless Worldwide is cutting
the pay packages for its top managers
following shareholder anger over the
telecoms groups poor performance
during its first year as an independent
company. The basic pay and perks of
Jim Marsh, chief executive, rose 45 per
cent in 2010-11, while the groups
share price fell 43 per cent in the same
period following two profit warnings.
TOP RBS STAFF GET 2.7M IN BONUS
SHARES
Seven of Royal Bank of Scotlands
most senior executives were granted
shares in the bank worth 2.7m after
a deffered part of an earlier bonus
scheme was paid out. John Hourican,
head of the investment banking divi-
sion, was awarded the biggest pay-out
of 2.4m shares for his performance in
2009, a bumper year for his part of the
business. After tax he received 1.16m
shares, which he immediately sold for
about 450,000.
BIG SIX ESCAPE ENERGY REGULATOR
The Big Six energy companies have
escaped a referral to the Competition
Commission, Ofgem will confirm
today. The decision comes in spite of
Britains largest independent suppli-
er warning that the regulators pro-
posed reforms are unlikely to be
effective.
BA GIVES UP ON NEW RUNWAY AT
HEATHROW
British Airways has given up hope of
a third runway being built at
Heathrow and is looking instead for
space to expand in foreign cities, with
Madrid at the top of its list of targets.
Speaking at The Times CEO Summit
yesterday, Willie Walsh, chief execu-
tive of BAs parent company, conced-
ed for the first time that the
Governments decision to cancel
expansion at Heathrow had killed the
prospect of a new runway for good.
US TOBACCO INDUSTRY TO FIGHT
GRAPHIC CANCER IMAGES ON PACKS
Cigarette packs sold in the US next
year will be required to carry images
of a corpse and cancer-ridden lungs in
a change that has triggered a legal
protest from the tobacco industry.
Cigarette packs sold in the US next
year will be required to carry images
of a corpse and cancer-ridden lungs in
a change that has triggered a legal
protest from the tobacco industry.
BELGIUM LIFTS SECRECY ON FOREIGN
BANK ACCOUNTS
Belgian tax authorities are preparing
to release the details of thousands of
foreign-owned bank accounts, as part
of a move to improve tax transparen-
cy. Information about around 250,000
savings accounts owned by foreigners
will be handed to governments
around the world in the next few
weeks.
M&A BOSS LEAVES UBS
In the latest of a string of high-level
departures to hit Swiss banking giant
UBS AG, its head of global mergers
and acquisitions has defected to
become a partner at New York-based
boutique Moelis & Co. Liam Beere, a
19-year veteran at UBS, will join
Moelis in September, according to a
statement from the boutique bank.
GEITHNER CONFIDENT US WILL AVOID
DEFAULT CRISIS
Treasury Secretary Timothy Geithner
Tuesday said he is confident that the
U.S. will avoid a default crisis this
summer as policy makers near agree-
ment on a broad budget framework.
Were going to have a bipartisan,
comprehensive long-term deficit
reduction framework. The question
is, what is going to be the shape of
that framework, Mr. Geithner said at
The Wall Street Journal CFO Forum.
WHAT THE OTHER PAPERS SAY THIS MORNING
FITCH has said that most of Europes
banks do not have a large amount of
direct exposure to Greece, holding
only 37bn in the sovereigns bonds.
Banks should be able to absorb the
immediate credit, market and liquidi-
ty risks with only minor, if any, nega-
tive rating actions, the agency said of
the situation in Greece. But this could
change due to the risk of a disorderly
contagion spiral, it added.
Most at risk would be
wholesalefunded banks with direct
exposure to peripheral Eurozone risk
and banks still in rehabilitation
mode, Fitch said.
BANKS use of emergency liquidity
from the European Central Bank (ECB)
shot to its highest level since February
yesterday, defying forecasts that
demand for one-week loans from the
Bank would be the same as last week.
In a worrying reminder of the
reliance Europes banks still have on
the ECB for their day-to-day funding,
Eurozone banks borrowed 189bn ver-
sus expectations of 135bn.
The banks rush for cash came as
Fitch warned that any rollover of Greek
sovereign debt would send the coun-
trys banking system into default
unless the ECB is bends its rules regard-
ing the collateral it will accept in
return for emergency funding.
The most crucial immediate con-
sideration for Fitchs bank ratings
would be whether a mechanism
would remain for ensuring that cen-
tral bank liquidity continues to be pro-
vided to the Greek banks, the agency
said. It estimates that Greek banks
hold some 45bn in Athens paper,
equal to 160 per cent of their equity.
The ECB has warned policymakers
not to precipitate a credit event a
default by imposing losses on private
holders of Greek debt. This would
make it impossible for the Bank to
accept Athens paper as collateral, it
said, which would freeze Greek banks
out of the ECBs emergency loans pro-
gramme -- a situation that Fitch calls a
worst-case scenario.
But City A.M. understands that the
Bank could instead decide to ignore
ratings agencies. A source close to the
ECB told City A.M.: When we accept col-
lateral, we can always say we trust the
Greek government and they are imple-
menting a programme regardless of
what the ratings agencies are saying.
However, the source added that if an
agency were to downgrade Greece to a
default, the ECBs governing council
would investigate the suitability of its
bonds as collateral.
Euro banks
scramble for
ECB funding
THE European Commission (EC) is
pressing ahead with plans to impose
a Tobin tax on all financial transac-
tions that pass through the EU,
despite concerns that it would devas-
tate the City.
EC president Jose Manuel Barroso
said yesterday that the 0.05 per cent
tax on every type of financial trans-
action would create appropriate
disincentives for overly risky or pure-
ly speculative transactions and
would also address concerns about
excessive profits in the financial
sector.
He promised to present legislation
to implement the tax, from which
the EU hopes to raise 200bn
(177.5bn) for additional spending,
at this weeks European Council
meeting of the regions leaders.
Sovereign states will have a veto
over the tax, but in practice it will be
difficult for the UK to veto the whole
raft of proposals the EC is hoping to
push through, which include meas-
ures to cede control over asylum pol-
icy, giving the EU the right to
approve the UK budget and kicking
off a timetable for Croatias admis-
sion to the EU.
UKIP said that the tax was being
proposed alongside a tsunami of
legislation. The partys leader, Nigel
Farage, warned: David Cameron
had better have his wits about him.
European Commission draws
up legislation for EU Tobin tax
SPAIN paid a slightly higher premium
to borrow 2.99bn (2.65bn) over three
and six months at a debt sale yesterday
as investors awaited clarity over a sec-
ond Greek bailout.
The amount of treasury bills sold
was at the higher end of the Spanish
governments target range of 2.25-
3.25bn and attracted solid volumes of
bids from investors.
Yields on the three-month paper
jumped 18 basis points compared to
the last tender in May and on six-
month paper they inched up a point.
The Spanish auction was being
closely watched for signs of contagion.
Spanish yields
rise in bond sale
EU banks could
absorb default
BY JULIET SAMUEL
EUROZONE
EUROZONE
EUROZONE
BY JULIET SAMUEL
TAX
Focus on Eurozone
ANALYSIS l Use of ECB one
week loan facility
by Eurozone banks
bn
Jan Feb Mar Apr May Jun
250
150
50
Jose Manuel Barroso said the tax would discourage risky trades Picture: REUTERS
FOSTERS Group yesterday rejected a
A$9.5bn (6.2bn) cash takeover offer
from global drinks giant SABMiller
sparking speculation that a bidding
war will follow.
SABMiller, which makes Peroni,
Grolsch and Miller Lite, has long been
seen as the favourite to take over
Fosters, but the Australian brewer is
digging in for a higher price.
The indications were that
SABMiller would let the dust settle
after the offer to gauge the reaction
from Fosters shareholders and the
market in general. The company is
adamant that the offer is a realistic
valuation of Fosters, which sold off
its wine business last month.
SABMiller chief executive Graham
Mackay said: Through the applica-
tion of our commercial capabilities
we believe we can improve Fosters
top line growth and enhance its prof-
itability. Mexican brewing power-
house Grupo Modelo had been tipped
to be the first to table a bid for
Fosters.
BY JOHN DUNNE
CONSUMER
INTELLIGENT software company

Autonomy yesterday announced it
had appointed Goldman Sachs as a
third joint broker.
Goldman, which now has 11 FTSE
100 broking clients, will work along-
side existing brokers UBS and Citi.
The Goldman pitch was headed up
by Phil Shelley, the former UBS bro-
ker who was recruited in December
to help strengthen the banks broking
business. Shelley knows the company
well from his days at UBS.
By appointing a third broker,
Autonomy joins the ranks of compa-
nies such as Diageo, Tesco and
Burberry, who also employ three
broking houses to advise them.
Earlier this year Burberry added
Nomura to its team.
The traditional broking role is not
normally the most profitable for
investment banks but it can lead to
other business and helps to create
potentially lucrative relationships
with corporate clients.
Goldman has won a few other man-
dates lately, such as Balfour Beatty
and Arm, in a sign that it is taking
the broking side of the business ever
more seriously.
JP Morgan is still the most success-
ful bank in terms of brokerships, but
most of these were acquired when
the group bought Cazenove, the
Citys blue-blooded stockbroker.
Goldman Sachs picks up a
broking slot with Autonomy
BY DAVID HELLIER
ADVISERS
News
DOES A RECORD LABEL LIKE EMI HAVE A FUTURE IN
A DIGITAL WORLD? Interviews by Phoebe Torrance and Cora Gardiner
They do. I prefer to use CDs because they are
what I am used to. I dislike the idea of down-
loads because the idea of buying an actual CD
is far more appealing as it is physically avail-
able to you; you can touch, hold and unwrap
the merchandise itself.
MIKE MCGILL | LLOYDS
It depends whether people want to go online
or go to the shops. When the younger genera-
tion has access to free music online, they can't
lose or damage the songs like CDs, which has
its own appeal. I think that makes it hard to
see a future in record labels like EMI.
Records labels do have a future, but not
necessarily in the form they are in now.
They need to diversify and adapt. The
older generation will always enjoy the
nostalgia in CDs but the younger genera-
tion will look online to access free music.
PAUL SMITH | INCEPTA
GERARD KINSELLA | CITYNET
ANALYSIS l Sabmiller
p
28Mar 18Apr 9May 20Jun 31 May
2,300
2,200
2,100
2,000
2,103.00
21 Jun
Fosters turns
down 6bn
SABMiller bid
ASDAS share of the UK grocery mar-
ket fell from 16.7 per cent to 16.3 per
cent in the 12 weeks to 13 June,
according to figures from Kantar
Worldpanel.
The figures show that the Wal-
Mart-owned chain is now only mar-
ginally ahead of Sainsburys, which
held its share steady at 16.2 per cent.
Discount stores Aldi and Lidl both
held their market shares at record lev-
els of 3.4 per cent and 2.6 per cent
respectively.
Asda loses market share as Lidl
and Aldi shore up their position
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GERALD RONSONS service station
business is among a consortium that
has snapped up 810 UK outlets from
French oil giant Total in a deal worth
hundreds of millions of pounds, the
firms announced yesterday.
Ronsons Snax 24 business, which he
set up 45 years ago, has teamed up
with Investec and new investment firm
Grovepoint Capital to take over the
petrol stations along with a logistics
arm and the Butler heating oil brand.
The Rontec consortium is believed to
have fended off rival bids from
Blackstone, Bain Capital and TPG.
The group has agreed in turn to sell
254 of the sites in the Midlands and
South East to Shell for 240m, but will
run the stations under a management
agreement.
As a result of the deal, Snax 24 will
be left operating 556 petrol stations
across the UK, of which 238 will be
owned by the Rontec group.
Total said the deal was part of its
attempts to streamline its downstream
business, in line with several big oil
firms refocusing on more lucrative
exploration and production.
The deal, expected to close later this
year, will leave Total with a handful of
marketing operations in the UK. The
firm said it was also continuing talks
to sell its UK refining business.
Ronson said the transaction marks
Snax 24s return to the fuel business in
scale.
Total sells its
UK forecourts
BY MARION DAKERS
M&A
News
6
Gerald Ronson has expanded his petrol retail firm Picture: Micha Theiner/CITY A.M
BRADLEY Fried led the advisory for
Grovepoint Capital, which also raised
finance for the deal.
Born in South Africa, Fried began his
career in New York with McKinsey & Co.
He moved to London in 1999 to join
Investec Bank in the UK. He was chief
executive at the bank until March 2010,
when he founded Grovepoint.
Grovepoints head office is based at
Heron House, where Gerald Ronsons
companies are also based.
Adam Dann and John Bennett, part-
ners at City law firm Berwin Leighton
Paisner, also advised on the deal.
MEET THE ADVISER: GROVEPOINT CAPITAL
BRADLEY FRIED
GROVEPOINT
CAPITAL
EDWARD Bonham Carter and other
shareholders in Jupiter Asset
Management have sold more than 25
per cent of their holding in the fund
manager through a share placement,
netting a total of almost 63m.
The sale of 26.9m shares equal to
5.7 per cent of the company came as
a lock-in period on the stock expired
exactly a year after the company
floated on the London Stock
Exchange.
Fund managers Anthony Nutt and
Philip Gibbs divested the largest
stakes, placing almost half of the
offered shares between them, to bank
18m and 12.7m respectively.
Chief executive Bonham Carter,
brother to actress Helena, sold just
555,103 shares, netting 1.3m at the
offer price of 2.40 per share, but
retaining a huge 14m shares or 3.6
per cent of the company.
Shares in Jupiter closed down 2.08
per cent yesterday at 249.51p, having
fallen to 238.10p earlier in the day.
Jupiter team
nets 63m in
share placing
BY ELIZABETH FOURNIER
FUND MANAGEMENT
News
Jupiter is led by Edward Bonham Carter, brother of actress Helena Picture: REX
Sell-off provides a buying opportunity
WHEN fund managers sell off
shares in the firm they work for, it
hardly inspires confidence. So it is
unsurprising that shares in Jupiter
tumbled two per cent yesterday,
after Edward Bonham Carter et al
sold stock representing 5.7 per cent
of Jupiters issued capital.
However, Bonham Carter sold
just 550,000 shares only 12 per
cent of the 4.6m he was allowed to
divest under the rules of the lock-
up put in place when the firm
floated last year. That suggests he
thinks the shares could go higher
still, and were inclined to agree.
Assets under management of
24.8bn were broadly in-line with
analyst estimates, as was first-half
revenue guidance of 126.5m-
129m and an adjusted Ebitda
range of 69.5-71.5m. Performance
fees surpassed expectations, howev-
er, coming in at 4.5m against con-
sensus of 1m or so.
Most analysts trimmed their fore-
casts yesterday on the back of softer
markets. But Jupiter still has much
to recommend. Its margins are
higher than the sector average; it is
well exposed to the structural
growth in the UK defined contribu-
tion pensions market; it has
demonstrated good organic
growth; and is not as reliant on per-
formance as some.
For that reason, it likely deserves
an enterprise value of 11.4 times
net operating profit after tax a
five per cent premium to the sector.
Investors mightnt like the signal
that is sent when directors and
employees cash in but we think
yesterdays sell-off is a buying
opportunity.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
ANALYSIS l Jubiter
p
310
290
270
250
249.51
21 Jun
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News
DUTCH insurer Aegon said yesterday
it would target seven to 10 per cent
annual earnings growth and resume
dividend payments, as it unveiled a
new strategy after repaying Dutch
state aid.
Earlier this month, Aegon became
the first Dutch financial institution
to repay the state in full, repaying
the government 4.1bn (3.6bn) to
open the way to a resumption in div-
idends and the possibility to make
takeovers.
The company said it aimed to grow
underlying earnings before tax by an
annual seven to 10 per cent, on aver-
age from 2010-15, and resume divi-
dends this year. It plans to pay a 10
cent dividend over the second half of
2011 in May 2012.
With the completion of repay-
ment to the Dutch State, we are
focusing our full attention to achiev-
ing ambitious financial targets, con-
sistent with our ambition to be a
leader in all our chosen markets in
the coming years, chief executive
Alex Wynaendts said.
Aegon said it would target a
return on equity of 10-12 per cent by
2015 and increase fee businesses to
30-35 per cent of underlying earn-
ings before tax by 2015.
Aegon sets targets and resumes dividends
EVERYTHING Everywhere, the joint
venture between Orange and T-Mobile,
faced criticism from MPs yesterday
over profit it stands to book on the sale
of radio waves.
Orange, which acquired the spec-
trum for free in 1991, must now
offload it as part of its merger agree-
ment with Ofcom, with analysts esti-
mating it is worth around 450m.
After taking into account licence
fees, this would give the firm a profit
of 290m. In a Department of Culture,
Media and Sport hearing yesterday
Labour MP Tom Watson asked if it was
fair that the firm make a profit for its
stakeholders in France and Germany
on the taxpayer-subsidised spectrum.
Everything Everywhere responded
by pointing out it has invested mil-
lions in infrastructure in the UK and
said it will re-invest the proceeds into
the rollout of a 4G network.
MPs believe the government must
set a coverage obligation to make sure
the whole of the country can access
mobile internet. They said mobile
broadband is a vital aspect of the roll-
out of superfast internet to the whole
of the UK.
MPs hit out at Orange
BY STEVE DINNEEN
TELECOMS
FINANCIAL data provider Dealogic has

said it intends to delist from Londons
alternative investment market (Aim).
The company, which offers research
and analysis to investment banks,
plans to delist next month, subject to
shareholder approval.
Management at the firm will hold a
shareholder meeting on 7 July to seek
approval for the plans, with delisting
effective from 19 July.
Directors at the firm want to delist
as they believe its share price had not
risen in line with its financial per-
formance, saying there had been lim-
ited liquidity of its ordinary shares.
Over the past year, trading of the
firms ordinary shares occurred on
only 131 days out of a possible 252
trading days, the firm said.
Dealogic also said its free float cur-
rently comprised of less than ten per
cent of its total issued share capital.
Since the firm listed in May 2004 its
revenues have increased from $59.1m
(36.4m) to $103.6m in 2010. Pre-tax
profits have increased by 100.7 per
cent since 2004 from $19.2m to
$38.6m in 2010.
The AIM listing does not, in itself,
offer investors meaningful liquidity or
marketability of the ordinary shares
or the opportunity to trade in mean-
ingful volume or with frequency, the
firm said.
Dealogic to
delist from
London AIM
CRUISE operator Carnival has
revealed an 18 per cent slip in second-
quarter earnings, as higher fuel prices
hit a growth in revenue.
The worlds largest cruise operator,
which owns the Cunard brand,
reported a pre-tax profit of $206m
(127m) for the quarter ended 31 May,
down from $252m a year earlier.
The profit equates to 26 cents per
share, above predicted earnings of
between 20 cents and 24 cents the
company made in March.
Revenues for the firm jumped 11
per cent to $3.6bn, beating analyst
forecasts.
Carnivals operating margin tight-
ened to 7.7 per cent from 10.7 per
cent, after high fuel prices pushed
costs for the company about $150m
higher than a year earlier.
The company lowered its full-year
earnings estimate to between $2.40 to
$2.60, compared to $2.47 per share a
year earlier.
Carnival also said it had been hit by
the earthquake and tsunami in
Japan, as well as other geo-political
events.
Revenue yield improvement was
more than offset by higher fuel prices
which cost the company approxi-
mately $150 million, or $0.19 per
share, said Carnival chairman and
chief executive Micky Arison.
Carnival is
knocked by
fuel prices
Labour MP Tom Watson asked if Orange should make a profit from the spectrum sale
LEISURE
BY HARRY BANKS
INSURANCE
CAPITAL MARKETS
ANALYSIS l Dealogic
p
330
310
290
270
310.00
21 Jun
ANALYSIS l Carnival
p
8Apr 28Apr 7Jun 18May
2,600
2,500
2,400
2,300
2,200
2,324.00
21 Jun
JEFFERIES Group, a mid-sized US
investment bank, posted a bigger-
than-expected drop in quarterly
earnings as rising costs outpaced a
revenue increase.
Profit fell to $80.6m (49.6m), or
36 cents per share, in the second
quarter ended 31 May, from $83.8m,
or 41 cents per share, a year earlier.
Analysts on average had expected
earnings of 39 cents per share.
Net revenue rose 8.3 per cent to
$727.2m from $665.5m.
Jefferies has been spending
aggressively to build up its business
as new regulations make invest-
ment banking more costly for its
bigger rivals.
The bank added 140 employees
during the quarter, resulting in a
4.5 per cent increase in staffing
from the first quarter of 2011.
Jefferies profits disappoint
FINANCIAL SERVICES
FOR ONCE, Boris Johnson wasnt the

centre of attention.
Instead, his brother Jo Johnson MP
took the spotlight at the Number 11
Downing Street reception to launch
Reconnecting Britain and India, the
book of essays Johnson co-edited with
the Indian Chambers of Commerce
secretary general Dr Rajiv Kumar.
Rachel Johnson, editor of The Lady,
was also representing the Johnson
clan, while London Stock Exchange
chief executive Xavier Rolet, Driss
Ben-Brahim, partner at Man GLG
Partners, and Clifford Chance partner
Simon Gleeson were among those
who heard trade minister Stephen
Green outline how the British govern-
ment is determined to forge a new
special relationship with New Delhi.
The point is no doubt elaborated on
by Prime Minister David Cameron in
the personal reflections on the ties
between the two countries he con-
tributed to the book.
RUSSIA WITH GLOVES
IT WAS billed as one of the most
enthralling events of the corporate
age: a white-collar boxing match
between rival Moscow and London
traders.
However, Mark Nicholls from ICAP,
James McLaughlan from JP Morgan
and Sean Mooney from Goldman
Sachs going several rounds with
Alexei Poliakov from SocGen Moscow,
Anatoly Mishnov from LukOil and
Alexander Matveev from Renaissance
Capital this Friday was obviously not
enough of a draw, as the fundraiser
sold only 100 tickets and has been
downsized from the original venue of
Kensington Town Hall to organiser
The Real Fight Clubs City gym near
Liverpool Street.
The first rule of fight club: give
spectators sufficient advance warn-
ing. Lets hope this announcement
pulls in the crowds for the resched-
uled big event at Kensington Town
Hall on 25 November although the
fighters have yet to be confirmed
FREEDOM FOR DAME
SHE has already been made a Dame,
but yesterday the list of Judi Denchs
honours grew ever longer as she
received the Freedom of the City at a
ceremony at the Guildhall for her
services to acting.
I feel very honoured, said the 76-
year-old thespian as she accepted her
framed parchment certificate in the
Chamberlains Court, adding that she
looks forward to occasionally wear-
ing a sword in public.
Dench was nominated by the clear-
ly starstruck Deputy William Fraser
and Gerald Bodmer, a liveryman from
the Worshipful Company of
Feltmakers. Fraser gushed: In an
exceptional career spanning more
than 50 years, the breadth of
Dame Judis roles has been aston-
ishing: Queen Elizabeth I,
Queen Victoria, Iris Murdoch,
M o t h e r
Courage,
L a d y
Bracknell,
M in the
B o n d
films and
her many
Shakespearean
roles, including
a memorably chilling
Lady Macbeth.
THE FLYING TRADER
YOUVE heard of the flying doctors,
now meet flying trader Greg Secker,
who will attempt to make money out
of thin air on Friday as he hovers
10,000 feet above the City in a heli-
copter while trading live on the for-
eign exchange markets.
Trading from his laptop in the sky,
every trade Secker makes will be post-
ed live on the website of his training
business Knowledge for Action to
allow the Citys traders to keep up.
See www.theflyingtrader.org to co-
pilot Fridays mission over to your
conscience as to whether you join
Secker in donating all the brokerage
commissions generated by your firm
on Friday to Barnardos and The
Ubuntu Education Fund.
NEPTUNE TURNS NINE
THE STAGE was set for the ninth
anniversary of Neptune Asset
Management at the National Theatre,
hosted by chief executive Robin
Geffen with non-executive chairman
Jonathan Punter and directors
Richard Green, Robert Warner and
Patrick Berton.
Neptune sponsors four productions
a year as the National Theatres
Cottesloe Partner, so the guests were
given a behind-the-scenes tour, led by
the NTs chairman John Makinson,
before taking in the views over the
South Bank from the theatres
rooftop venue The Deck.
The evenings entertainment was
provided by a skiffle band inspired by
the NTs current play One Man, Two
Guvnors and later by The Gandinis,
who gave a juggling performance
from their Glow repertoire.
BORIS BROTHER PLOTS
HIS PASSAGE TO INDIA
Getting high: Flying trader Greg Secker
Jo Johnson MP (far left), co-editor of Reconnecting Britain and India, with trade minister Stephen Green (centre) and book contributors
9
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
CITYA.M. 22 JUNE 2011
News
VIRGIN Atlantic pilots voted in
favour of a strike over pay yester-
day, although union members said
no date for industrial action had
been set because they still hope an
agreement can be reached.
With no pay increase since
2008, a below-inflation offer for
2011 and proposals for 2012 and
2013 that will be sub-inflation this
is now a six-year attack on living
standards which has not happened
in any other UK airline. Pilots at
Virgin are saying enough, pilots
union Balpa
said.
The state-
ment added that
Balpa hoped Sir
Richard Branson
( p i c t u r e d ) ,
whose Virgin
Group owns a
m a j o r i t y
stake in the
a i r l i n e ,
would meet
to resolve
the dispute.
B a l p a
said 97 per
cent voted for strike action
in the ballot and noted that
there had been no UK pilot
strike for 32 years.
Virgin said it had
offered pilots pay
rises over the next
two and a half years
and a share of com-
pany profits.
We believe that
once Balpa commu-
nicate this offer to
our pilots, industri-
al action will be
averted, the airline
said.
BY HARRY BANKS
AVIATION
l
NEWS FROM THE PARIS AIR SHOW
AIRBUS piled up orders for its
revamped A320neo passenger jet at
the Paris Air Show yesterday, putting
more pressure on Boeing.
European planemaker Airbus
notched up $14.4bn (8.8bn) of orders
on the first day, outselling US rival
Boeings $9.3bn.
Early yesterday its sales chief said it
had 544 commitments for its new
A320 aircraft, including a memoran-
dum of understanding with leasing
company CIT for 50.
Healthy demand from buyers at
the show has provided evidence that
a solid upswing in civil aviation is
underway, powered by emerging mar-
kets in Asia. The hike in oil prices this
year has also given buyers a new sense
of urgency to get more fuel-efficient
aircraft.
Airbus beats
rival Boeing
BY CORA GARDINER
AVIATION
ROLLS-ROYCE WINS ETIHAD DEAL

ROLLS-ROYCE yesterday signed a $360m (222m) agreement with
Etihad Airways, which will see the engineering giant provide long-
term engine services and performance kits to the United Arab
Emirates national carrier.
Pilots at Virgin vote
for first ever strike
the market.
City A.M. was given an exclusive
sneak preview of the TouchPad run-
ning an early version of WebOS at the
Consumer Electronics Show in Las
Vegas earlier this year and, while per-
fectly useable, it is far from revolu-
tionary and gives no compelling
reason to choose HPs offering over
the all-conquering iPad.
Last year Apple raked in an esti-
mated $1.8bn (1.1bn) through
its App Store, an 87 per
cent share of revenue,
while Google made
$100m.
HEWLETT-PACKARDis fighting to per-
suade more developers to jump on
board its app store as it prepares to
launch its first tablet PC next month.
The worlds biggest computer man-
ufacturer lags far behind market lead-
ers Apple and Google in the booming
market. Its online store offers just
7,000 apps, compared to more than
500,000 on Apples App Store and
almost 300,000 on Googles Android
Marketplace.
Analysts say it is vital developers
provide apps if the upcoming
TouchPad is to have even the
slimmest of chances of chipping mar-
ket share from established rivals like
the iPad.
Many developers are wary of
going to the expense of port-
ing their products onto
HPs WebOS platform
while it is
unproven in
News
NOKIA boss Stephen Elop yesterday
said he expects the first wave of
Windows Phone 7 (WP7) handsets to
be released later this year, as
revealed by City A.M. earlier this
month.
Elop said he has increased confi-
dence that troubled Nokia will
launch its first device based on the
platform by the end of 2011, after
ditching its in-house Symbian oper-
ating system.
He added the firm will begin sell-
ing WP7 phones in bulk in 2012.
Industry insiders said the first
Nokia WP7 handset which they
said will be fully touch-screen will
be a fantastic piece of hardware.
The Finnish
company is des-
perate to gain a
foothold in the
lucrative smart-
phone market,
where it has
been rocked by
intense compe-
tition from the
likes of Apple,
Samsung and
HTC.
Nokia yes-
t e r d a y
launched its
N9 handset
running the
MeeGo operating system it jointly
developed with Intel. Analysts have
described the phone as an orphan
as it is unlikely to be joined
by other MeeGo phones, and
could miss out on future
updates.
The release will do little to
reassure investors, who have
seen Nokias shares tumble
since announcing a shock
sales and margin warning
earlier this month, and
admitting it may not make a
profit this quarter.
To make matters worse,
Nokia will this year be
superceded by Samsung
as the worlds largest
smartphone man-
u f a c t u r e r ,
with Apple also
biting at its
heels.
Nokia boss confirms
2011 release of WP7
BY STEVE DINNEN
TELECOMS
NEWS | IN BRIEF
Leighton takes over as Pace chairman
Allan Leighton has taken the role of non-executive chairman of
set-top box maker Pace. His appointment was announced in
May. He takes over from Mike McTighe, who is step-
ping down after a decade at Pace, with five years
under his belt as chairman. McTighe will con-
tinue as a non-executive director until he
retires at the end of August. Shares in
Pace crashed 39 per cent last
month after an unscheduled
trading statement warned
that profits for the
year would be
worse than
forecast.
HP urges developers
to join its app store
NEWS |
IN BRIEF
Halma sees boost to profits
British safety, health and sensor technology
group Halma has reported a rise in full-year pre-
tax profit to 104.6m to 2 April compared with
86.2m a year ago. Total revenues rose 13 per cent to
518.4m with strong organic growth in its health and analy-
sis division and in emerging markets. Revenue contribution from
outside the UK, rest of Europe and the US was about 24 per cent,
compared with 21 per cent last year.
RPC Group beats expectations as Superfos buy lifts turnover
Europe's leading plastic-packaging supplier RPC Group announced their full-year
results, which where better than expected strengthened by the acquisition of its peer
and cost cuts. The results for the year ended 31 March 2011 showed that sales increased
by 99.3m to 819.2m due to nine per cent growth on a like-for-like basis and the inclusion of
37.5m Superfos turnover after RPC acquired the packaging company last year. The company,
which bought Superfos in December, raised its final dividend by about 10 per cent, taking the total
dividend to 11.5p. Net profit improved by 94 per cent to a record 25.6m.
App Store (Apple)
500,000
Android Marketplace (Google)
300,000
Nokia Store
40,000
Windows Phone 7 (Microsoft)
18,000
Blackberry App World (RIM)
8,500
WebOS (HP)
7,000
Number of apps:
* estimated number
of Apps as of April
Most downloaded apps (paid for):
Android Marketplace (Google)
Angry Birds Seasons
App Store (Apple)
Doodle Jump
Nokia Store
Angry Birds
Windows Phone 7 (Microsoft)
Doodle Jump
HOW DO THE APP STORES MEASURE UP?
BY STEVE DINNEEN
TECHNOLOGY
MICROSOFT is preparing for an all-out

assault on the mobile phone market in
a desperate bid to regain ground ceded
to Google.
The firm plans to unveil a host of
new handsets to coincide with the
new version of its Windows Phone 7
(WP7) platform codenamed Mango
slated for release this autumn.
Among the line-up will be the first
Nokia handset developed for WP7 fol-
lowing the Finnish firms
decision to abandon its
Symbian operating sys-
tem to climb into bed
with Microsoft, led by
Steve Ballmer (pic-
tured).
Industry insiders
have described
the hand-
set
w h i c h
p
t
i
BY STEVE DINNEEN
EXCLUSIVE
HENDERSON Global Investors has

completed the purchase of the
Leadenhall Triangle site for around
190m, the fund manager announced
yesterday.
The Triangle, which encompasses
five sites in the City including
Leadenhall Street and Fenchurch
Street, was sold following interest
from 11 potential bidders.
The plots previous owners, who
were clients of Investream, hired debt-
servicing specialist Hatfield Philips
last summer, who in turn appointed
PwC in November last year after
172m of debt secured on the assets
was not repaid.
The sale followed a marketing
process including over 60 information
memoranda issued to interested par-
ties, resulting in 11 initial bids being
submitted, ranging from 145m to
183m.
Philip Byun, vice president, HPI said
that achieving the full debt repay-
ment highlighted that Londons
financial districts and West End retail
property continue to defy the slump
that affects most of the European
commercial property markets.
Henderson could not confirm yes-
terday whether plans drawn up by
architects in 2006 to turn the triangle
into 1.25m square foot site for banking
headquarters would still go ahead.
NEW plans for the redevelopment of
Chelsea Barracks in central London
were given the go-ahead yesterday by
Westminster council, two years after
the Prince of Wales intervened over
the original plans for the site.
The outline of the masterplan for
the scheme, which will cost around
3bn, will see the 13-acre property that
used to house the Queens guard trans-
formed to include up to 448 houses
and flats, as well as a sports centre,
retail and a health centre.
The approval comes two years after
the sites owners Qatari Diar withdrew
their plans following Prince Charles
objections to award-winning architect
Lord Rogers designs.
In a letter to the prime minister of
Qatar last year, the Prince said that his
heart sank when he saw Lord Rogers
plans.
The plans, revised by architects
Dixon Jones, Squire and Partners and
Kim Wilkie, will now be referred to
London Mayor Boris Johnson for
approval before more detailed designs
for the buildings are put before the
council.
Sources familiar with plans said the
buildings will be less futuristic,
reaching up to eight stories in height
compared to 11 stories outlined in the
previous plan and will be joined by
some five acres of new public squares.
The Grade II listed chapel on the site
will also be maintained.
The development will also feature
123 affordable homes, with 78m
being contributed to the councils
affordable housing fund.
Chelsea Barracks is the most signif-
icant residential development we have
seen in Westminster in recent years,
said councillor Alastair Moss, chair-
man of Westminster Councils
Planning and City Development
Committee. It is a world class site, in a
historic part of the capital and it is
vital that its re-development helps
improve the area.
BY KASMIRA JEFFORD
PROPERTY
NEWS | IN BRIEF
Product demand boosts Domino Printing
Britain's Domino Printing has seen a rise in profits on increased
demand for its products. Domino, whose printers are used for
stamping barcodes and expiry dates on foods and other
products, raised its interim dividend by 20 per cent.
Pre-tax profit for the six months to 30 April was
28.2m in comparison to the 25.1m in the
same period one year ago. Additionally,
revenue rose eight per cent to
156.4m. The gross margin for
the year was also improved
rising from 48.9 per
cent the previous
year to 49.8
per cent.
Leadenhall
Triangle sale
completed
PROPERTY
SHORT sellers are targeting global technology stocks, as traders bet on a

return to dot.com boom and bust.
The tech sector recorded the highest proportion of new stock loans out of all
other sectors last week, according to research provider DataExplorers.
US technology software and services had short interest at 6.5 per cent of total shares at
the end of last week. The rise is well above the average US broad market Russell 3,000 index
where short interest hit 4.6 per cent.
AOL, the US internet provider, has been subject to rising short interest over recent months.
Shares in the company have fallen in recent months, and short sellers increased their positions in
March to reach a fresh high of 16.7 per cent of total shares.
The developments come on the back of several high-profile technology floats in the US, including the listing
of networking website LinkedIn, and in anticipation of the float of Facebook.
CITYA.M. 22 JUNE 2011
News
May 1984
At the 150th Anniversary of the Royal
Institute of British Architects (RIBA), the
Prince launches an unexpected attack on
modern design, calling a plan for the
National Gallery extension "a monstrous
carbuncle on the face of a much-loved
and elegant friend.
December 1987
At the Corporation of London Planning
and Communication Committee's annual
dinner at Mansion House, Prince Charles
criticises a scheme by Lord Rogers to
redevelop Paternoster Square, which
leads to Rogers changing the design.
October 1988
In his BBC documentary A Vision of
Britain, the Prince criticised the building
of Canary Wharf saying he would go
mad if I had to work in a place like that.
July 1991
Charles wins the battle over designs for
the extension of the National Gallery in
Trafalgar Square with a postmodern
classical design by US architects Robert
Venturi and Denise Scott Brown.
February 2008
Prince Charles described designs for iron-
clad Ivor Crewe Lecture Hall in
Colchester as looking "like a dustbin".
The building went on to win a regional
awards from the RIBA.
April 2009
The Princes kicks off a row over Lord
Rogers by intervening with his design of
Chelsea Barracks.
TIME LINE | PRINCE CHARLES DESIGN INTERVENTIONS
Short
sellers bet
on return of
dot.com bubble
13
TECHNOLOGY
Chelsea Barracks
3bn plan approved
Birthday
JOIN OUR
CELEBRATI ONS
Chamberlains is celebrating
its 10th birthday with a new
season menu and a joint
summer evening offer with
Santa Margherita celebrating
50 years of Pinot Grigio.

FOOD &
WINE OFFER
10
Visit Chamberlains restaurant at 23-25 Leadenhall Market, EC3V 1LR,
call 020 7648 8690 or visit www.chambcr|a|nsoondon.com

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News
NEWS | IN BRIEF
Kier says trading is in line
Support services group Kier has
announced that trading remains in line
with forecasts. It insists that its order
books in services and construction
remain resilient with net cash balances
staying at healthy levels. Kier said it has
secured all its expected construction rev-
enue for the year to 30 June and 86 per
cent of targeted revenue for the follow-
ing year.
Creston makes progress on profits
Communications firm Creston has posted
a sufficiently higher than expected full
year profit, raised its dividend and said it
expected revenue growth next year from
foreign markets and marketing services.
Like-for-like revenues rose seven per
cent, giving a pre-tax profit one per cent
ahead of last year at 10.4m. The compa-
ny said it would pay a final dividend of
2.25p per share.
China consumer confidence down as UK grows
I
N recent months when we have
looked at the economic confi-
dence figures from the
Bloomberg/YouGov Household
Economic Activity Tracker (HEAT) we
have seen that the Chinese consumer
is buoyant whilst the UK one is gener-
ally negative about the next 12
months. The figures from May show
that this position remains with a 68
point difference between the net con-
fidence figures in the two countries
(China +42, UK -26).
However that gap has narrowed in
each of the last four months with
early signs that confidence has
improved slightly in the UK and
cooled to some degree in China. In
China, confidence is now 12 points
worse than it was in February (+42
compared to +54) while in the UK it is
10 points better (-26 compared to -36).
To a large extent this is reflected in
peoples actual circumstances, i.e.
how their financial situation has
changed in the last month. In China
this number fell from +27 in February
to +17 in May, whilst in the UK it rose
from -35 in February to -23 in May.
So in China we still have good num-
bers but getting worse, and in the UK
it remains bad but its getting better.
One spot where concern in China is
increasing is with respect to inflation
and this is impacting how people pur-
chase. In February, UK and China
consumers were nearly identical in
reporting an increase of price-con-
sciousness compared to the last
month (60 per cent in China said they
were more price-conscious; 59 per
cent in the UK). Over the past three
months, there has been divergence,
as Chinese consumers become more
price conscious (66 per cent reporting
increased price consciousness versus
51 per cent in the UK).
Worries about inflation continue
to make news in China and we are
seeing those worries register at the
consumer level.
Stephan Shakespeare is chief executive of
YouGov
BRANDINDEX
STEPHAN SHAKESPEARE
ANALYSIS l Change since last month
Feb Mar Apr May
40
30
20
10
-10
0
-20
-30
-40
China UK
ANALYSIS l Change expected in 12 months
Feb Mar Apr May
60
50
40
30
20
10
-10
0
-20
-30
-50
-40
China UK
Part Number: 7379KGG
Dual-socket Tower server featuring up to 2 Intel Xeon processor 5600 series
2x 146 GB 10k Hot Swap Disk Drives
IBM ServicePac 3-year onsite limited warranty
6
on parts and labour
Upgrades to 3 years 24x7 Onsite Repair with a 4 hour response
7
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Rated No.1 in Server Customer Satisfaction by TBR for the 6
th
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3
.
Performance or efficiency?
How about both.

1
x3650 M3: 931,658 SPECjbb2005 bops 155,276 bops/JVM; Intel Xeon X5690 2 chips/12 cores. x3650 M2: 598,924 SPECjbb2005 bops 149,731 bops/JVM; Intel Xeon X5570 2 chips/8 cores.
Results as of 4/5/11. http://www.spec.org/jbb2005/results. SPEC and SPECjbb are registered trademarks of Standard Performance Evaluation Corporation (SPEC)
2
Based on comparing
previous generation, 200 servers IBM eServer xSeries 346 (3.0 GHz) (2Ch /2Co) to new generation 10 servers IBM x3550 M3 (Xeon E5650) 2.66 GHz (2x6) using the IBM Consolidation Evaluation
tool.
3
TBR 4Q10 x86-Based Servers: Corporate IT Buying Behaviour & Customer Satisfaction Study, February 2011.
4
All prices stated include VAT at a rate of 20% and are the IBM estimated
retail selling prices that were correct at the time of going to print.
5
Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply: Offering
availability subject to credit approval; Available to offering specific credit qualified commercial clients financing; 5K to 200k in the United Kingdom; IBM eligible hardware must comprise a
minimum 70% of total financed amount; IBM eligible hardware financed on 36 month fair market value lease*; all other items financed on 36 month loan, or full pay out lease if available; Charges
for software, services must be a one time cost not recurring i.e. quarterly; Sold direct through IBM or through an authorised IBM reseller. For more details and full Terms & Conditions please visit:
http://www.ibm.com/financing/uk/lifecycle/acquire/xsolutionfinancing.html Global Financing offerings are provided through IBM Credit LLC in the United States and other countries. IBM Global
Financing terms and conditions and other restrictions may apply. Monthly payment provided is for planning purposes only and may vary based on customer credit and other factors. Payment is
quarterly. Rates and offerings are subject to changes, extension or withdrawal without notice.
6
Standard warranty is 3-year Onsite limited warranty. The ServicePac upgrades this to 3-year
7x24x4hr. 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
7
Service will only be provided in the country where the service has been purchased, unless stated otherwise. For more information on
ServicePac warranty enhancements visit: www.ibm.com/services/europe/maintenance 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 Corpora-
tion 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 30/04/2011 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 States. 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. 2011 IBM Corporation. All rights reserved.
IBM System x3650 M3 Express
1,654.80 incl. VAT
4
OR FROM 137.90 / QUARTER FOR 36 MONTHS
5
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IBM System x3400 M3 Express
1,447.20 incl. VAT
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5
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see below.
IBM System Storage DS3524 Express
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5
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Part Number: 1746A4S
External disk storage with 6Gb/s Serial Attach SCSI (SAS) interface technology
Scalable up to 48 TB with 500 GB 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
0800 028 6282
Contact the IBM Team to help you connect to
the right IBM Business Partner
or x3650m3 Search
Part Number: 7945K3G
2U dual-socket server featuring up to 2 Intel Xeon processor 5600 series
18 DIMM sockets, 1333 MHz DDR3 (18 RDIMMs, 144 GB max)
IBM ServicePac 3-year onsite limited warranty
6
on parts and labour
Upgrades to 3 years 24x7 Onsite Repair with a 4 hour response
7
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a t i d e r c r e m o t s u c n o d e s a b y r a v y aay m d n a y
d n a s e t aat t S d e t i n U e h t n i C L L t i d e r C M B I h g
m r e TTe l l u f d n a s l i a t e d e r o m r o F . rr. e l l e s e r M B I d e

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M B I r o e v i t at t n e s e r p e r M B I r u
t n e m u c o d s i h T . y t i l i b a l i a v a o t
s e c i r p g n i l l e s l i a t e r d e t aat m i t s e
- a r o p r o C l e t n I f o s k r a m e d a r t
e b t h g i m s e m a n e c i v r e s d n a
, o g o l M B I e h t , M B I . s e c i v r e s
n o n o i t aat m r o ffo n i e r o m r o F . e s i
t i s i v , s e i t n a r r a w t c u d o r p e l b a
r a e y - 3 o t s i h t s e d a r g p u c a P
s i t n e m y ay P . s r o t c a f r e h t o d n
l a b o l G M B I . s e i r t n u o c r e h t o
: t i s i v e s a e l p s n o i t i d n o C & s m

CAPITAL Pub Company yesterday
reported a profit surge that could send
its price tag up as Fuller, Smith &
Turner looks to buy the
business.
Fuller made public a
54m bid last week but
Capitals chief execu-
tive Clive Watson has
steadfastly refused to
entertain the offer.
His bargaining hand
is now stronger given
that in the year to March,
Capital saw revenue at its
34 pubs rise 24 per cent to
27m.
Profit jumped 48 per cent
to 4.1m, allowing the com-
pany to pay a dividend of
2.25p, the first since 2008.
The company specialises
in revamping pubs and tapping into
London communities, particularly
attracting young and well-off pubgo-
ers.
Watson said: We have a growth
strategy and want to continue doing
what we are doing. We are the
only remaining independent
London pub company. London
deserves a freehouse operator.
Watson, who stood to
receive 7m for his stock
under the Fullers offer, said
the company was on the hunt
for more pubs to buy and is
aiming to bring the total to
between 45 and 50.
Cenkos Capital broker Ian
Berry said in a note: Pubs repre-
sents a unique potential acquisi-
tion opportunity for a larger
business and in due course it will
be acquired by a larger operator.
He added that Fullers bid is
woefully inadequate.
BY JOHN DUNNE
LEISURE
News
16
VERSACE TO DESIGN FOR H&M
H&M yesterday announced that Versace would be its next guest designer. The Versace
line will hit some 300 H&M stores worldwide in November and will look back on the
heritage of the brand, full of leather, print, colour and exuberance in exclusive materi-
als. A further collection, also designed by Donatella Versace (above, centre left), will be
available exclusively online from January 2012. Picture: H&M
Capital Pubs
in profits lift
STRONG turnover and new stores at
Costa Coffee have helped Whitbread
raise its sales by 9.2 per cent.
Total sales at its coffee chain in the
last three months were 22.5 per cent
up on a year ago.
Costa was boosted by the opening of
73 new branches during the period, as
well as new customers joining its loyal-
ty scheme. Whitbreads Premier Inn
chain also did well thanks to strong
sales in London, with growth of eight
per cent.
But trading at its restaurants, which
are based outside London, was hurt by
a more difficult casual dining mar-
ket chief exec Andy Harrison said.
Like-for-like sales at its restaurants,
which ignore the effects of new restau-
rant space, fell 1.4 per cent compared
with a year ago.
The overall sales figures were largely
in line with analysts forecasts.
Business was adversely affected by the
extended Easter and Royal Wedding
holiday, Harrison said.
He attributed that to a drop in busi-
ness travellers due to extended holi-
days and pub-goers only using
premises with gardens in the May
heatwave.
The FTSE 100 hotel and restaurant
group plans to open another 300 Costa
Coffee outlets over the next year, a 15
per cent increase, and to add 4,000
rooms to Premier Inn, which is a nine
per cent increase.
Harrison said: We are very pleased
with the results especially in a tough
trading environment.
Whitbread in
sales lift as
Costa grows
Chief executive Andy Harrison says London is fuelling a group sales jump
BY JOHN DUNNE
LEISURE
News
ANALYSIS l Whitbread
p
1,750
1,650
1,550
1,450
8Apr 28Apr 7Jun 18May
1,587.00
21 Jun
ANALYST VIEWS: IS WHITBREAD ON A
SUSTAINABLE GROWTH TRAIL? Interviews by John Dunne
NIGEL PARSON | EVOLUTION SECURITIES

We are trimming our forecasts to reflect a more cautious view of the
UK economy ex-London but the stock remains good value. Whitbread's strong
value proposition remains relevant and the increasing roll-out will compensate for
more muted like for like sales.
RICHARD HUNTER | HARGREAVES LANSDOWN

Total sales showed an impressive growth spurt, whilst within this
Premier Inn was the beneficiary of a promising London market. Whilst concerns
remain around the intensity of competition in the markets in which it operates, the
company seems well placed to deliver on its growth plans. Buy.
SIMON FRENCH | PANMURE GORDON

The commentary suggests the Premier Inn and Costa performances
are on a rising trend which should reassure the market. We will likely see a
bounce in the shares today but remain cautious on UK regional hotel revpar [rev-
enue per available room] trends and reiterate our Hold recommendation.
THE capital is weathering the eco-

nomic downturn much better than
might have been expected with cof-
fee bars, hotels and pubs bursting at
the seams, according to two chief
executives yesterday.
Andy Harrison at Whitbread and
Clive Watson at Capital Pub
Company, who both reported buoy-
ant sales, extolled the virtues of
London as an oasis in a country
where the downturn has drained
sales and seen pub closures in their
dozens.
Harrison said his Premier Inns in
the capital had seen an eight per cent
sales rise, compared with a minor lift
in other parts of the country.
The jump has been fuelled mainly
by business travellers who have come
flooding back since the global econo-
my started on the road to recovery.
Costa has performed well across
the country but it is London where
customers have the disposable
income to splash out.
Similarly Watson at Capital Pubs
said there were no shortage of afflu-
ent punters to fill his pubs on any
given day of the week.
The company is planning an expan-
sion on the strength of the spending
power in London, which evidently has
its own micro econ-
omy.
LONDON | AN ECONOMIC OASIS
News
CHANCELLOR George Osbornes
deficit reduction plan is already run-
ning off track, some economic ana-
lysts said yesterday.
Government borrowing measured
17.4bn in May, down from the
18.5bn borrowed in May 2010 -- yet
in the fiscal year to date (April and
May), borrowing was 1.5bn higher
than at the same time last year.
Central government spending was
2.24 per cent higher in May this year
than in May 2010 (in nominal terms
and excluding capex), the Office for
National Statistics revealed.
Its early days yet but, at this rate,
borrowing will overshoot the Office
for Budget Responsibilitys 122bn
borrowing forecast by almost
30bn, calculated Jonathan Loynes
of Capital Economics.
The governments plans for
reducing the deficit are now show-
ing worrying signs of slippage,
added Mark Littlewood, head of the
Institute for Economic Affairs.
Public sector borrowing for the
last fiscal year, which came in suc-
cessfully below target, was revised
up by 3.8bn, to 143.2bn.
In 2009-10, the deficit hit a high of
156.5bn.
Spending in April and May was
4.1 per cent higher than in the same
months of 2010, the Institute for
Fiscal Studies (IFS) revealed in a note.
This years budget, according to
the Office for Budget
Responsibilitys (OBR) forecasts,
allows for a 3.6 per cent rise in
spending, the IFS said.
The higher spending is because of
higher debt interest payments, the
OBR said yesterday.
Responding to the figures, the
OBR continued to point to dented
tax receipts early in the financial
year and a distorting effect from the
one-off payroll tax on banks in April
2010. The tax raised 3.5bn in April
2010, suppressing receipts growth
in the early part of 2011-12, it said.
Excluding the effects of the one-
off bank tax, government receipts
are up 7.8 per cent this fiscal year,
the IFS calculated -- above the OBR
forecast for a 7.3 per cent rise.
Government debts reached
920.9bn in May, equivalent to 60.6
per cent of GDP up from 778.9bn
(53.8 per cent of GDP) at the same
time in 2010.
SHARES of major Chinese lenders
China Construction Bank (CCB) and
Agricultural Bank of China (AgBank)
fell to multi-month lows yesterday,
hit by potentially souring loans, an
economic slowdown and tighter capi-
tal requirements.
CCB printed a nine-month low of
HK$6.43 (0.50) in early trading,
down 2.7 per cent. AgBank was down
3.8 per cent to a four-month low of
HK$3.84, versus the benchmark Hang
Seng Indexs 0.4 per cent rise.
The risk of a hard landing for the
Chinese economy is increasing, said
Alexander Lee, a Hong Kong-based
analyst at DBS Vickers. The Japanese
earthquake, a slow US economy, the
Eurozone problems and a slowing
Chinese economy are all building up.
CCB is Chinas largest mortgage
lender at a time when the govern-
ment is taking increasingly heavy-
handed measures to cool real estate
prices, prompting Standard & Poors
to lower its outlook on the countrys
property sector to negative.
AgBank is the biggest lender to
rural causes and has the highest non-
performing loan ratio and lowest cap-
ital adequacy ratio among the big
four lenders, raising worries that it
may need fresh capital if the govern-
ment tightens capital requirements.
Further weighing on the two stocks
is the impending expiry of their cor-
nerstone investors lock-up period
Big Chinese lenders see stocks drop on
fears of capital requirement tightening
HIGH crude prices may derail growth
in China and India, the two nations
that have helped the global economy
overcome the financial crisis, the
International Energy Agency has said.
Prices for Brent crude have peaked
at just above $127 (78) a barrel so far
this year although it fell to around
$111 yesterday as uncertainties about
how Greeces debt crisis could be
resolved spurred risk aversion.
Oil prices are still significantly
higher than average of 2008. High oil
prices are a significant risk to derail-
ing the economic recovery not only in
the OECD countries, but also in China
and India, the IEAs chief economist
Fatih Birol said.
China and India are two most
important economies which helped
us get out of the economic crisis. If
they go for tightening of monetary
policies, this may lead to a slowdown
in their economies which is bad news
for all of us.
Emerging economy boom
at risk from high oil values
WORLD ECONOMY
THE UK could still face a deflationary

threat despite stubbornly high infla-
tion, Bank of England rate-setter Paul
Fisher claimed yesterday.
The economy could be much
weaker than we expect, pushing
down on inflation and risking defla-
tion, Fisher told a gathering in
London yesterday.
Recovering to the target from that
could be even harder, he said.
Fisher also acknowledged an
upside risk to inflation, which cur-
rently stands at 4.5 per cent on the
consumer price index.
Higher inflation expectations
could become entrenched making it
very costly for the Bank to subse-
quently bring inflation back to tar-
get, he said. There are very major
risks to either side.
The Bank has been correct to keep
rates at their historic low of 0.5 per
cent for over two years, Fisher argued.
I do not think I have heard many
argue that we should have done
something materially different with
policy during the depths of the reces-
sion, Fisher said.
Deflation could still hit the UK, insists
defiant Bank of England official Fisher
UK ECONOMY
CONSUMERS can expect price hikes

from UK factory products in the com-
ing months, as manufacturers look to
pass on steep and rising costs.
Yet despite inflationary products
and weak domestic demand, the
industry is upbeat about its current
situation, a survey from the
Confederation for British Industry
(CBI) revealed yesterday.
Nearly a third (31 per cent) of manu-
facturers expect to raise output prices
over the next three months, it said.
Inflationary pressures remain
acute, said CBI chief economist Ian
McCafferty. High commodity prices
and import costs mean firms still
expect to raise factory gate prices
markedly over the next three months.
A positive balance of 27 per cent of
manufacturers expect prices to rise,
up from 24 per cent in Mays survey
and well above the long-run average of
a one per cent balance.
Overall business, measured by total
order books, climbed out of negative
territory for only the second time this
year in the survey. A positive balance of
one per cent reported above normal
orders, considerably higher than the
long-term average of -18 per cent.
The result were partly driven by
strong exports, which recorded an
even balance, with 27 per cent saying
overseas orders were above normal
and 27 per cent reporting below nor-
mal exports a monthly improve-
ment, and above the long-run average
of -21 per cent.
Expectations for the coming three
months moderated slightly. Much of
this appears to be due to the tempo-
rary supply chain disruptions follow-
ing the tsunami in Japan, McCafferty
added.
UK factories set to hike prices
BY JULIAN HARRIS
UK ECONOMY
Planned cuts
to deficit yet
to be realised
BY JULIAN HARRIS
UK ECONOMY
BY HARRY BANKS
BANKING
GOVERNMENTS FISCAL WATCHDOG ANNOUNCES NEW OFFICIALS

FORMER Bank of
England interest
rate-setter Kate
Barker and ex-
Treasury official
Terry Burns were
yesterday
announced as the
latest recruits to
the governments
Office for Budget
Responsibility.
Meanwhile,
Michael Cohrs -- a
member of the
Banks interim
Financial Policy
Committee -- has
been appointed to
the Banks Court of
Directors.
Pictures:
REUTERS/PA
NEWS | IN BRIEF
German morale plummets in June
A majority of German investors now
expect its economy to slow over the next
six months, with the Eurozones debt cri-
sis is weighing heavily on sentiment. The
Mannheim-based ZEW economic think
tanks headline sentiment index hit its
lowest since January 2009 in June,
falling into negative territory for the first
time since last October at -9 points com-
pared to 3.1 in May.
American housing market slumps
Sales of previously owned US homes fell
to a six-month low in May and prices
dropped 4.6 per cent from a year ago,
pointing to a housing market still strug-
gling to regain its footing. The National
Association of Realtors said yesterday
that sales slipped 3.8 per cent month-on-
month to an annual rate of 4.81m units,
the lowest since November. It was the
second straight month of declines. The
drop was smaller than economists had
expected, but the April sales figure was
revised lower, leaving a report that was
largely in line with expectations in finan-
cial markets. Sales were partly affected
by tornados and flooding.
Gold spikes due to Greek worries
Gold rose for a third day yesterday, driv-
en by a weaker dollar and uncertainty of
the sovereign debt crisis in Greece.
Bullion also got a lift from a return of
investor risk appetite across-the-board,
as the grains, commodity and equity
markets all rose. The precious metal has
hit a high against sterling this week,
printing over 954 an ounce.
News
CITYA.M. 22 JUNE 2011 19
UBS
Antanas Petrosius has been appointed as
deputy chief executive for Russia and
CIS and head of investment banking for
Russia and CIS, based in Moscow.
Petrosius will join UBS on 1 August from
Credit Suisse, where he is chief executive
for Credit Suisse Kazakhstan.
British Polythene Industries
The polythene manufacturer has
appointed Ian Russell as an independent
non-executive director and as chairman
of the audit committee. Russell is cur-
rently chairman of Johnston Press,
Advance Power AG and Remploy.
Dominos Pizza
Syl Saller and Helen Keays will be
appointed as non-executive directors
of Dominos Pizza UK & Ireland with
effect from 20 September. Saller is
global innovation director for Diageo,
and Keays is a consultant and a non-
executive director of Majestic Wine.
EC Harris
The built asset consultancy has hired
Nick Hayes as its new head of sus-
tainability. Hayes joins from environ-
ment specialist BRE, where he was
international director.
HSBC Private Bank
Adam Brownlee has been appointed as a
director on the high net worth team at
HSBC Private Bank. He joins from Credit
Suisse, where he was a vice president.
Aon Hewitt
The HR consulting business of Aon
Corporation has appointed John
Harrison to its UK Investment team as
a principal consultant. Harrison was
previously UK chief investment officer
at UBS Global Asset Management.
Barclays Corporate
Jason Clinton has been appointed as
business development director in the
non-bank financial institutions team.
Clinton joins from National Australia
Bank, where he has held the role of
director, international payment solutions,
Europe, for the past five years.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
US stocks recover
on Greece hopes
U
S stocks posted gains for the
fourth day yesterday on grow-
ing hopes that Greece will
avoid a debt default, adding
momentum to the markets recent
rebound.
The Nasdaq had its biggest per-
centage gain since October, while
the S&P 500 marked its best day in
two months in what investors
believe could be continued short-
term buying from deeply oversold
levels.
The Nasdaq reclaimed positive ter-
ritory for the year and led the mar-
kets advance, boosted by a jump in
semiconductor stocks. A semicon-
ductor index shot up 2.5 per cent, its
best gain since April.
Consensus grew that Greek prime
minister George Papandreous cabi-
net would survive a confidence vote
after the US market close. The confi-
dence vote is seen as the first step in
moving closer to a resolution of
Greeces debt crisis.
It could pave the way for more aid
and also remove a source of con-
stant worry about global banks
exposure to the euro zones debt
problems. The PHLX KBW Bank
Index gained 1.1 per cent after
touching a 52-week high earlier in
the day.
If youre an investor, you dont
want this Greek debt crisis to touch
off another round of financial con-
tagion around the world, said
Michael Sheldon, chief market
strategist of RDM Financial, in
Westport, Connecticut.
Volume was lighter than normal,
however, with just 6.69bn shares
traded on the New York, Nasdaq and
NYSE Amex exchanges, compared
with a daily average of 7.58bn.
The Dow Jones industrial average
rose 109.63 points, or 0.91 per cent,
to 12,190.01 at the close. The
Standard & Poors 500 Index gained
17.16 points, or 1.34 per cent, to
1,295.52. The Nasdaq Composite
Index climbed 57.60 points, or 2.19
per cent, to 2,687.26.
The Nasdaq ended Tuesdays ses-
sion above its 50 and 200-day mov-
ing averages, for the first time since
31 May.
The Dow and the S&P 500 finished
last week with gains after six weeks
of declines. The Nasdaq, however,
ended the week in the minus col-
umn.
The S&P 500 is down five per cent
since its 2 May high.
After nearing its 200-day moving
average on Monday, the S&P 500
rebounded solidly above the level.
Analysts saw 1,360 as the next tech-
nical level on the upside.
B
RITAINS leading shares
pushed higher yesterday, led
by rallying commodity stocks
and banks as investors await-
ed a vote of confidence in the Greek
Parliament.
The vote, due after the London
market close, is seen as a key step
towards the passage of more spend-
ing cuts in exchange for foreign
emergency loans.
What equity markets need is a
bit of good news or even some relief
from the sheer dreariness of the
Eurozones sovereign debt crisis and
Greeces financial odyssey, said
Mike Lenhoff, market strategist at
Brewin Dolphin.
A vote of confidence for Mr
Papandreou and his government
might be the catalyst that helps
equity markets to regain their foot-
ing, he added.
At the close, the FTSE 100 index
was up 81.92 points, or 1.4 per cent
at 5,775.31, recovering the previous
sessions losses, although trading
was thin, at just 68 per cent of the
average 90-day volume.
Energy issues were the top blue
chip sector gainers as crude prices
rose, with BG Group ahead 2.7 per
cent.
BP added 3.7 per cent after
Weatherford, which provided equip-
ment used in the Macondo oil well,
agreed to pay $75m (46m) toward
the cost of the Gulf of Mexico spill.
Miners also rebounded as metal
prices ticked up, with Chilean cop-
per miner Antofagasta ahead 5.1 per
cent and Fresnillo up 4.7 per cent.
Outside the top flight, gold miner
Petropavlovsk gained 7.6 per cent on
the back of strong production fig-
ures.
Banks lent their strength to the
blue chip index as well, with
Barclays up 2.5 per cent, while glob-
al heavyweight HSBC added 0.9 per
cent.
Whitbread was the top FTSE 100
gainer, up 6.9 per cent after
Britains biggest hotel and coffee
shop operator said its London opera-
tions had performed strongly in
recent weeks.
Cruises operator Carnival got a
boost from better-than-expected sec-
ond-quarter results, adding 6.0 per
cent.
Wolseley rose 4.3 per cent as ING
upgraded its rating for the building
supplies firm to buy.
FTSE 250-listed software firm
Misys rose almost nine per cent
after it announced that it had
received a bid approach.
On the downside, brewer
SABMiller was the top blue chip fall-
er, down 3.6 per cent after rival
Australian firm Fosters Group
rejected its A$9.5bn cash takeover
offer.
Defensively-perceived water blue
chips were also weak, with United
Utilities down 0.8 per cent, as
Goldman Sachs cut target prices
and estimates in a sector review.
The rotation into defensives in
Europe may have been a feature of
last week ... We favour the non-cycli-
cals until sovereign risk abates, the
manufacturing data turns and
Chinese inflation peaks, said strate-
gists at RBS in a note.
Domestic macroeconomic news
was mixed. British factory orders
were stronger than expected in
June, but Britain ran up a record
budget deficit in the first two
months of the fiscal year.
But US data was supportive, with
a smaller than expected decline in
May existing home sales helping US
blue chips add one per cent by
Londons close.
FTSE gains after commodity
rally and flurry of M&A bids
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Commerzbank
6.0
5.0
4.0
3.0
8Apr 28Apr 18May 7Jun
3.174
21 Jun
COMMERZBANK
Deutsche Bank reinitiates coverage of Germanys second largest bank with
a buy rating and a target price of 4.60, reflecting the groups strong
position in core German banking products. The broker sees the main profit
driver in the next 18 months as the normalisation of loan losses and execu-
tion on cost saving potential, after the bank completed its recapitalisation
programme earlier this month.
ANALYSIS l Homeserve
540
520
500
480
460
440
p
522.00
21 Jun
HOMESERVE
UBS rates the emergency insurance cover and domestic repair providers as a
buy, and increases its target price from 560p to 580p. The upgrade is
based on a recent visit to the groups US operations in Miami and Connecticut,
which the broker sees as having potential for UK-levels of penetration, cross-
selling and retention. The broker adds three to five per cent to its earnings
per share estimates for 2014-16 based on the US opportunity.
ANALYSIS l AXA
16.0
15.6
15.2
14.8
14.4
15.38
21 Jun
AXA
JP Morgan Cazenove rates the French financial protection group as under-
weight with a target price of 16, and increases its earnings per share
estimate for 2011 by three per cent following a recent investor day. The
broker sees sense in Axas focus on turning round its property and casualty
business, but thinks it will take some time before Axa can bring underwrit-
ing profits to a more attractive level.
6,100
5,900
5,700
4May 24May 14Jun 8Apr 21 Mar
ANALYSIS l FTSE 100
5,775.31
21 June
Linklaters
The law firm has appointed Michael Cutting as
global head of competition and Sir Christopher
Bellamy (pictured) as chairman of the practice,
both effective from 1 July. Cutting, who has been
a partner at the firm since 2005, specialises in
banking, energy and utilities competition law,
and takes over from Gerwin Van Gerven, who is
stepping down as global head of competition.
Bellamy joined Linklaters as a senior consultant
in 2007, and was previously president of the UK
Competition Appeal Tribunal.
T
his hasnt been the easiest of
times for investment banks but
there are signs that deal activity,
at least, is picking up to more
normal levels. We have chosen JP
Morgan because, as ever, it has shown
itself to be strongly placed in most
markets. Bank of America Merrill
Lynch is something of a recovery story.
It is fast moving on from the traumas
of the early days of its ownership by
Bank of America. Barclays Capital is a
relative newcomer on the equities
front, while Evercore and the ever-
green Goldman complete the list.
JP Morgan has had a bumper year for
M&A, pulling off AT&Ts $39bn
acquisition of T-Mobile USA, in part
through a $20bn unsecured bridge
loan the largest single one of its
kind in the banks history.
The bank has also advised Sanofi
Aventis on its $7bn yankee bond
issuance, one of the biggest pharma
transactions ever, and GDF Suez in
its 300m bond sale.
And JP Morgan took a spot on the
opposite side to Goldman on the
$23.4bn merger of International
Power and GDF Suez. It also helped
FTSE 100 miner BHP Billiton in its
$45bn capital-raising to fund its bid
for Potash Corp. The acquisition was
scuppered by protectionist Canadian
authorities, but it was nonetheless
the banks biggest financing job
since 2008.
JP MORGAN
CAZENOVE
After a deceptively slow start to
the year, Goldman confounded its
rivals by keeping its place at the
top of the league tables for M&A
services, advising on transactions
worth $679bn globally.
It has taken on some of the
most complex deals and restruc-
turing jobs in the industry includ-
ing spin-offs by Fiat, Motorola and
ArcelorMittal as well as
Vodafones purchase of a 33 per
cent stake in Vodafone Essar and
GDF Suezs acquisition of a con-
trolling stake in International
Power. The banks UK brokerages
business is benefiting from recent
changes at the top, gaining FTSE
100 tech giant Autonomy and
FTSE 250 builder Balfour Beatty as
clients in just the last week. Other
wins seem likely.
GOLDMAN
SACHS
BARCLAYS
CAPITAL
take a lot of the plaudits for this but
it has to be said that the bank,
which is not a traditional broking
firm but wants to become one, will
also be benefiting from the strong
lending relationships it already has
with clients.
Its client list includes Barclays,
National Grid, Resolution and the
new British Airways owner IAG.
The bank has also been picking
up an increasing amount of UK
transactions work, including lead-
ing on the 900m IPO of Justice
Holdings, the largest blind pool
vehicle ever listed. In 2010 the bank
moved up from 14th to 2nd in the
UK M&A table. The investment banking boutique
Evercore has had an eventful and
successful year.
Recently it paid 86m to buy the
advisory firm Lexicon and it raised
funds by way of a $155m share
issue.
It has mandates on a number of
high profile mergers and acquisi-
tions deals, such as advising Nasdaq
on its joint bid with ICE for control
of the NYSE and AT&T in its bid for
T- Mobile US.
In the UK, stars such as Bernard
Taylor have helped push the
European business forwards, advis-
ing the Qataris on their investment
in Hochtief and Lafarge on its joint
venture with Anglo American.
The bank is growing fast and has
big ambitions, with some expecting
another acquisition soon.
EVERCORE
Deals in Bank of America/Merrill
Lynchs European financial institu-
tions group (FIG) have been coming
thick and fast, with the bank win-
ning mandates to advise on some of
the regions biggest capital-raisings,
including rights issues for Deutsche
BANK OF
AMERICA/
MERRILL
LYNCH
Bank (10.2bn), Commerzbank
($6.1bn), Danske Bank ($3.8bn) and
the $3.3bn privatisation of Russias
flagship investment bank VTB.
Thats in addition to non-FIG
mega-deals such as book-running for
Glencores float and a role advising
Porsche on its $7.2bn capital-raising.
The banks volume of deals and its
expertise in new instruments like
contingent convertibles has made it
the go-to adviser for capital-raisings
and seen a boost in M&A mandates
as well, such as advising on
Santanders $5.4bn purchase of
Bank Zachodni, National Bank of
Greeces $4bn acquisition of Alpha
Bank and VTBs $3.5bn deal to buy
the Bank of Moscow.
T
hey are far less visible than their
counterparts in corporate
finance or in the capital mar-
kets, but traders play a crucial
role in many organisations.
For this years selection we have
chosen two traders for big banks, one
hedge fund founder and one hedge
fund trader. And then theres a man
from Glencore.
Dont miss the City event of the
year book your table for the City
A.M. Awards on 21 September 2011 at
Grange St Pauls Hotel, London EC4.
www.CityAMAwards.com
GLGs Steven Roth is the man
responsible for the GLG Market
Neutral Fund, which generated
returns of 33.7 per cent last year.
This year returns have been more
modest but are still said to be
around nine per cent.
Roth joined Man-owned GLG in
2005 to co-manage the GLG Market
Neutral and GLG Global
Convertible Funds. Earlier this year
he wrote about a paper explaining
why he is a convertible bonds fan.
He previously spent seven years
at Deutsche Bank, where he was a
managing director and head of the
number one ranked European con-
vertible business. Away from the
screens, Roth enjoys wine tasting
and collecting and watching
movies. He also is reported to play a
mean game of table football.
STEVEN
ROTH
MAN GROUP
Alex Beard is Glencores global
head of oil, whose stake in the firm
became worth around 1.7bn when
it was floated earlier this year.
He joined Glencore in 1995. He
was appointed director of the oil
commodity department in
February 2007, overseeing all of
Glencores crude oil and oil prod-
ucts.
Now he runs the groups oil trad-
ing division from offices in Mayfair,
and he is also a director of Chemoil
and various other Glencore Group
companies.
Beard holds an MA degree in bio-
chemistry from Oxford. Before
Glencore, he worked for BP.
Beard is the top man for
Glencore in the UK, and is already a
fully fledged member of the
Sunday Times rich list.
ALEX BEARD
GLENCORE
Morgan Stanleys Richard Evans is a
rising star in the electronic equity
trading world.
He currently runs Delta-1 strate-
gists, which is focused on creating
better toolkits to help manage
Morgan Stanleys execution busi-
ness and ensure that the firm is
RICHARD
EVANS
MORGAN
STANLEY
positioned appropriately for the
future trading environment.
He joined Morgan Stanley in
September 2009 in a well reported
move from Citigroup, where he was
responsible for a range of electronic
execution services, including its
agency programme trading, trans-
action cost analysis, market data
monetisation and the Lava e-trad-
ing product lines.
Evans was also a founding board
member of the investment
bank-backed Turquoise trading
platform from April 2007 to
December 2008.
Outside work, Evans is a keen
runner who, having run three
marathons, has most recently
turned his hand to triathlons. Michael Hintze, the Australian
founder of hedge fund CQS, is
short-listed this year mainly for his
decision to donate 2m of his per-
sonal wealth to the National
Gallery in January.
Hintze, who founded CQS in
1999, is a regular giver to the arts,
supporting institutions including
the Old Vic, the V&A and
Wandsworth Museum.
Hintze, who is also a donor to
the Conservative party, said at the
time of his gift: We have always
sought to give back to those institu-
tions that have enriched and given
so much to our lives. He was for-
merly head of equity trading at
Goldman.
CQS took a massive short posi-
tion on Bradford & Bingley at the
time of the financial crisis.
MICHAEL
HINTZE
CQS
At the age of 29, David Hitchens
was made one of the youngest ever
managing directors when he
became global head of FX deriva-
tives trading at Bank of America.
Since then he has successfully
managed the FX options businesses
DAVID
HITCHENS
UNICREDIT
at Calyon, TD Securities and latterly
Unicredit, Italys biggest bank,
where he is managing director
and global head of vanilla forex
trading.
Now 36, Hitchens has been one of
the foremost FX options traders in
recent years demonstrating consis-
tent success.
Following the credit crisis, he has
been quick to respond to changing
market conditions, leading TD to be
the first bank to stream live options
prices into the CME, the worlds
biggest derivatives exchange.
Hitchens has also been highly
involved in the application of artifi-
cial intelligence to the algorithmic
trading of both FX spot and options.
OF THE YEAR
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Since hiring Jim Renwick as head of
UK equity capital markets and cor-
porate broking in April 2009,
Barclays Capital has won 14 clients
from a standing start, which is why
it makes it into our list this year.
Renwick, formerly of UBS, must
Counting the cost of
business travel
Picture: REX
I
TS fair to say that climate change
issues have stormed into the main-
stream of political debate over the past
couple of decades.
David Camerons 2006 trip with the
huskies and the consequent vote blue, go
green strapline wouldnt have been possi-
ble without the change in perception of
green issues; climate change got a whole
UK government department to look after it
in 2008.
Despite finally being taken seriously by
politicians, climate change today shares
one major problem with climate change
yesterday: a concerted and effective interna-
tional political response is missing.
Individual countries may take positive
steps, but in a globalised world, these are
undermined by the inaction of others.
One of the few concrete steps on climate
change taken by politicians on the interna-
tional stage, the 1997 Kyoto Protocol,
expires next year and attempts to renew it
have, despite the pre-event hype, always
ended in failure.
This has left a rather large policy vacuum
at the centre of the sustainability agenda; a
vacuum that business can fill.
FILLING THE VACUUM
Business and sustainability goals are usual-
ly presented as mutually exclusive, but this
neednt be the case. Business is in a great
position to drive forward the sustainability
agenda and benefit their bottom line at the
same time.
Discussion of how businesses can benefit
from embracing sustainable business prac-
tices doesnt often stray beyond reputation-
al benefits, but this often risks
sustainability becoming a PR add-on for
businesses.
Businesses that genuinely embrace sus-
tainability can find efficiency savings, man-
age risk, and identify new opportunities for
growth.
Finding these advantages isnt easy: it
takes good information and innovative crit-
ical analysis. Above all, it takes measure-
ment.
Without measurement, management of
something is impossible. Businesses
account for their financial inputs and out-
puts for a reason, after all.
Theres been plenty of work over the past
decade or so to develop credible method-
ologies to help businesses measure their
greenhouse gas (GHG) emissions. However,
most of this work has focused on the most
obvious kind of emissions: Scope-1 and
Scope-2 emissions.
Briefly, Scope-1 GHG emissions are those
directly caused by a business; Scope-2 emis-
sions result from the generation of pur-
chased electricity.
What dont really receive attention are
Scope-3 emissions.
MEASURING EVERYTHING
Scope-3 is everything else. Business travel;
distribution and logistics; waste disposal.
Even the use of a businesss products and
the impact of the whole supply chain
counts. Unsurprisingly, Scope-3 emissions
make up the vast bulk of business emis-
sions, perhaps up to 75 per cent.
Its from measuring Scope-3 that busi-
nesses can find the information needed to
understand climate-related risks and
opportunities upstream and downstream
from operations, beyond operational
boundaries and in the products and servic-
es developed and sold. Its from measuring
Scope-3 that businesses can gain an edge
over their competitors.
Scope-3 reporting lifts the bonnet on
businesses to show business leaders how
their company works in a way they have
never seen it before. It reveals previously
unseen trends amongst inputs and outputs
that can challenge assumptions and affect
strategic decision-making.
Measuring Scope-3 can result in deci-
sions to develop new products rather than
adapt old ones; it can highlight where busi-
nesses use inefficient and unsustainable
resources; it can result in new criteria for
evaluating supply chain performance.
In short, measuring Scope-3 can result in
change. It can challenge companies to look
at what theyre doing, not just how theyre
doing it.
In 2009, 409 (82 per cent) Global 500
companies responded to the Carbon
Disclosure Projects request for GHG emis-
sion information. Just over half of this
group reported any Scope-3 emissions (209;
42 per cent). Only six companies reported
on all five classes of Scope-3 emissions.
This lack of engagement is understand-
able. For one thing, none of the regulatory
or voluntary reporting programmes
require Scope-3 reporting. Besides, measur-
ing Scope-3 can be tricky. Theres the risk of
double-counting, there are questions about
what exactly to measure, and how to meas-
ure it.
WHO DOES WHAT
Businesses respond to these challenges in
three broad ways. Theres the control
approach, where businesses focus on emis-
sions that they can control. In other words,
they ignore Scope-3.
There are businesses that adopt an
influence approach, an approach in
which a business recognises the impor-
tance of Scope-3 and uses its influence to
change Scope-3 upstream.
Then theres the engaged approach,
where businesses identify opportunities
for innovation downstream as well as
upstream. This kind of business looks not
only at how they make their products, but
how they are used and disposed of too.
Among businesses that report Scope-3,
German chemical giant Bayer is one of the
leading proponents of this approach.
MUTUAL EXCLUSIVITY
Sustainability and business are not mutu-
ally exclusive. Businesses face as many risks
from climate change and unsustainable
practices as the rest of us, perhaps even
more so.
Climate change and other sustainability
issues will impact the very foundations of
businesses: availability of inputs; market
stability; reputation; efficiency; and cus-
tomer and investor demand.
A better understanding of the risks and
opportunities associated with GHG emis-
sions would benefit business by enabling
the development of strategies that can cre-
ate value for organisations and their stake-
holders.
In the absence of global political leader-
ship, businesses have the opportunity to
shape the sustainability agenda before it
shapes them.
Counting up the full
pollution impact of a
firm can also help it
generate innovation
and reduce its costs
ANDREW LECK
HEAD OF ACCA UK
Keeping track of your companys total
emissions makes sense on every level
CITYA.M. 22 JUNE 2011 21
City Focus| Accounting
Wealth Management | Foreign Exchange
22
There isnt an
alternative to
Greek default
Events in the Eurozone are moving fast
for forex traders, writes Philip Salter
G
REECE is in a dire state. While
people protest in the streets,
bond yields consistently point
towards expectations of a
default. Things are going to be bad,
but if the key actors continue to deny
the inevitable, the tragedy will play
out even worse. As such, forex traders
need to keep on their toes.
SEEING THE WOOD FOR THE TREES
The former Federal Reserve chief Alan
Greenspan has gone on record as say-
ing of Greece that the risks of default
are so high you almost have to say
theres no way out. Rishi Patel of Fair
FX concurs: Interest rates demanded
by investors are so high it makes it
impossible for Greece to fund itself
through the bond market. He argues
that the structural deficit remains
unchallenged: Greece has already
burned its way through one bailout,
if it is offered the same again it will
do the same. Former foreign secre-
tary Jack Straw MP believes the euro,
in its current form, is going to col-
lapse.
Throughout Europe and across the
political spectrum, people are losing
faith in a Greek renaissance. On
bailouts, Conservative MP John
Redwood has noted: We could easily
lose substantial sums through this
activity. The IMF has been lending to
euro countries at a little over 5 per
cent when the market says they
should be paying twice that. His sec-
ond concern is one of timing: The
UK government is rightly fighting the
battle of the bulge on its own borrow-
ing habits. Having to borrow more to
lend to ailing Euroland economies
through the IMF is not helpful to the
UK programme of debt and risk
reduction in the national accounts.
THE EUROPEAN DISEASE
Ian OSullivan of Spread Co compares
the Greek debt crisis to the Asian
financial crisis of 1997/8, which swept
across the global economy: This
started in Thailand, a small country
too, but when that collapsed
investors fled from the surrounding
vulnerable economies. In the fallout,
most of South East Asia and Japan
saw their currencies fall, stock mar-
kets tank and asset prices fall across
the region. He thinks this is some-
thing that could well happen in
Europe.
Yet, the can cant be kicked down
the road forever. Bill Bonner in his lat-
est Daily Reckoning thinks the prob-
lem could be solved by letting a few
banks and speculators go broke. It
would teach the rest of them a lesson.
Most likely, Europe could get back to
work soon after. But for better or
worse, the authorities arent going to
let banks go bust any time soon a
managed default would be the best
politically feasible option. Michael
Hewson of CMC Markets suggests
rather than throwing good money
after bad, Europe should opt for a
controlled default, by recapitalising
exposed banks. Even this might fail.
Capital Economics notes: There is
still considerable uncertainty about
the ripple effects throughout the
global financial system. Adding a
Greek default would crystallise and
deepen the worries about the dire
state of the public finances in many
countries.
NIMBLE TRADERS
OSullivan warns that traders will
need to stay nimble. He argues in a
Greek default the fallout could be
swift and brutal. As such, he thinks
euro-dollar will swing wildly and will
almost certainly be hit hard. Just how
hard will depend on the results in the
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AFTER GREECE,
THE EURO WILL
LOOK TO DATA
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
C
URRENCY markets were in a state of sus-
pended animation, awaiting the Greek no con-
fidence vote. But the verdict of the parliament
in Athens wasnt surprising. Prime Minister
Papandreou was never likely to lose, despite the fact
that he had a majority of just five in the parliament
of 300. The stakes were simply too large. If the
Papandreou government fell, the ensuing chaos
could easily have sent the euro below the $1.4000
figure, as the prospect of a Greek default suddenly
became quite real.
Even with the Papandreou governments sur-
vival, and the austerity measures passed by the
Greek parliament, the credit crisis will face addi-
tional challenges. The German Banking Federation
is now demanding better incentives before its
members are asked to extend repayments on their
existing Greek debt. The situation is complicated
further by the rating agencies who may not acqui-
esce to a rollover of Greek debt. Fitch Ratings
warned it would treat a voluntary rollover of
Greeces sovereign bonds in any rescue package as
a default and would cut the credit rating accord-
ingly.
Nevertheless, now the Greeks have been able to
stave off immediate crisis, the focus in the euro-
dollar will turn to economic rather than political
news. As the week proceeds, the market will get a
glimpse of the flash PMI data on Thursday and the
IFO survey on Friday. Given the disappointing
results from Tuesdays ZEW report, which showed
the first negative reading since October 2010, I
believe there is a strong chance that the latest eco-
nomic data from the Eurozone could miss to the
downside. Despite the turmoil in the periphery,
euro-dollar has held up remarkably well over the
past month on the assumption that growth in the
core economies will lead to further tightening by
the European Central Bank, but that thesis will be
sorely tested if this weeks reports show a signifi-
cant deceleration in economic activity. Thats why
even if euro-dollar rallies in post-vote euphoria, its
gains may be capped at the $1.4500 level.
Word on the
street is that
the Greek econ-
omy is dead
and buried
Picture: AP
23
days and weeks that follow. Patel
believes many questions are going to
be asked about the effect of the cur-
rent uncertainty on the other periph-
ery nations. He says: In January we
saw the euro at $1.29. Given the cur-
rent turmoil in the Eurozone, that
level may not be as far away as the
charts display.
THE TRAGEDY
Greek civilisation arguably peaked in
Athens during the fifth century BC.
Then the wealthy subsidised the
entertainments of the people, includ-
ing theatre. There are few wealthy
enough in Athens today to pay for
such diversions. Unlike modern
entertainment in which blood and
guts are strewn across screen and
stage, the Ancient Greeks confined
their violence to the imagination
the chorus at the front of the stage
described the deaths. In this modern
tragedy, even though the key actors
are ignoring the chorus of the mar-
ket the sound of the death knell
rings clear.
with extreme caution. It might be best to
wait to see if it reaches 128.0 before buy-
ing. Spread Co offers sterling-yen at
129.69-129.77.
So long as theres call for a safe haven in
financial markets, the Swiss franc is unlike-
ly to be short of supporters. The greenback
has lost around 30 per cent of its value
against the Swissie over the last 12
months. With ongoing uncertainty over
economies on both sides of the Atlantic,
theres little reason to believe this trend will
come to an end any time soon. Current IG
Index price on dollar-Swiss franc is
SFr0.8433-SFr0.8435.
With the FOMC meeting today, and a
Bernanke press conference later, the US
dollar could be set for a bounce, especially
if the chairman signals that no further QE
is forthcoming. This could well provoke a
bounce in dollar-yen, which is trading just
off one month lows. CMC Markets spread
on dollar-yen is 80.165-80.174.
Mixed Chinese macro data has been hitting
the wires weaker credit growth but
stronger industrial production is being off-
set by a positive Japanese recovery since
the tsunami. Japans industrial production
report released last week revealed that
manufacturers are forecasting a huge 8
per cent increase in production during both
May and June. If the actual economy fol-
lows these forecasts, the level of industrial
production would exceed the average of
Jan and Feb 2011 (pre-tsunami) by June.
On euro-yen, Alpari offers a spread of
114.90-114.92.
Craig Drake
S
TERLING-yen continues to come
under pressure as it hit a low yester-
day not seen since the earthquake
related slide in mid-March of
129.73. Heavy pressure on dollar-yen and
a similarly weak cable helped to push it
lower. It looks intent on testing the support
areas around 129.15-128.70, so anyone
tempted to buy this pair should approach
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CAXTON FX
RICHARD
DRIVER
There is little push-
ing the Fed to tight-
en policy. The US is
not suffering from
the same price pres-
sures as other
economies and labour market improvement
remains the Feds number one concern.
Moreover, there have emerged serious ques-
tion marks over the US economic outlook
amid a raft of awful growth figures. The Fed
and Bank of England policy outlooks are very
similar; tighter policy can only be considered
when sustained growth emerges. The threat
of a double-dip recession in both economies
remains realistic, and premature tightening
could be the tipping point.
Accordingly, we are probably looking at the
middle of next year for a Fed rate hike.
Bernanke looks highly likely to maintain his
extended period rhetoric with regard to the
Feds current ultra-loose monetary policy.
However, a third round of quantitative easing
would probably only be resorted to if the US
did fall back into negative growth. Bernanke
is likely to stress the recent weakness of US
growth and in the absence of any hints to
future tightening, the US dollar looks likely to
come under a little pressure. The dollar will
remain weak for many months to come, but
hopes for hawkish Fed rhetoric are so sparse
that we are unlikely to see the greenback suf-
fer any major losses for today at least.
IG INDEX
CHRISTOPHER
BEAUCHAMP
Ben Bernanke does
his Meet the Press
act for the second
time today, when he
will take questions
on the Feds view of
the state of the US
economy. As it
stands, the Fed is
stuck between a rock and a hard place;
the US economy is not yet strong enough
to withstand tighter policy, nor is it weak
enough for QE3. The most likely course of
action is for the Fed to refrain from any
changes to policy, preferring instead to
see how the current soft patch in the
US economy plays out.
A decision to stand fast would most likely
result in a rally for the US dollar, due to
diminished expectations of more money
printing, although this could rapidly peter
out as investors realise rate hikes are still
some way off.
Continued loose policy will give a lift to
both equities and commodities, but per-
haps the longer term driver remains the
crisis in Europe. If people continue to
shift back to US Treasuries as a safe
haven, the US dollar could make gains
regardless of the Federal debt ceiling
problem that looms on the horizon, and
this could contribute to further losses for
stocks.
CHARLES
SCHWAB
LIZ ANN
SONDERS
We believe mone-
tary policy is large-
ly on hold for the
near to medium-
term. Its unlikely the Fed will begin to let its
balance sheet shrink; as such, QE 2.5 rein-
vesting proceeds from maturing Treasuries to
maintain the level of its balance sheet
would be considered a go once QE2 ends this
month. Given the US and global economys
soft patch, expectations for the first actual
rate hike by the Fed have been pushed to
mid-2012. It may be premature to set target
dates for the first hike because the Fed is
truly data-dependent and driven by their dual
mandate. In other words, if employment
growth were to improve meaningfully and
inflation expectations were to pick up uncom-
fortably, the Fed might be moved to at least
hint about rate hikes sooner than what is
built into expectations.
As for whether QE3 is on the table, Fed chair-
man Bernanke has already said explicitly that
the bar is very high.
In our minds that bar would only be hit if
deflation risk increased markedly from here
and the unemployment rate were to move
meaningfully higher from here. In other
words, both of their mandates would likely
have to be breached for the Fed to consider
QE3 a necessary remedy.
GFT FOREX
KATHY LIEN
With US economic
data still very weak,
the Federal Reserve
will have no choice
but to keep mone-
tary policy easy.
The idea of another
round of quantita-
tive easing (QE3) has been floated, but the dete-
rioration in US data has not been severe and
consistent enough to warrant such a nuclear
option. QE2 received a significant amount of
opposition both inside and outside of the Federal
Reserve and QE3 would make Bernanke even
more politically unpopular. The Fed has decided
to go with their initial game plan of ending asset
purchases but keeping the size of the balance
sheet unchanged going forward by reinvesting
principal payments. The more interesting ques-
tion to consider is what could happen to the dol-
lar once QE2 is completed at the end of this
month. To answer this question, we can examine
how the dollar behaved when the first round of
quantitative easing ended around April 2010.
The dollar index rose 10 percent between April
and mid June but over the next few months, it
trended lower as investors considered the possi-
bility of QE2. We saw a similar reaction in euro-
dollar, which fell from $1.33 down below $1.20.
Since more stimulus is not a serious possibility
this time around, the end of QE2 this month
could spark a dollar rally based on the prospect
of higher yields along with less concerns about
inflation or currency debasement.
Looking into the Feds crystal ball
FOREX ANALYST PICKS
FOREX STRATEGIST
ILYA SPIVAK
My pick: Short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
FOREX STRATEGIST
DAVID RODRIGUEZ
My pick: Long dollar-Canadian dollar
Expertise: System trading
Average time frame of trades: 2 days to 10 weeks
The dollar remains in a fairly steady short-term uptrend against the
Canadian dollar, and I think it will continue to recover off of multi-year
lows. Our proprietary FXCM Speculative Sentiment Index data showed
retail trading crowds remained heavily net-long dollar-Canadian dollar
from September 2010 through mid-May 2011. The fact that crowds
are now net-short underlines the sentiment shift and gives contrarians
a consistent signal that the pair could continue higher.
The euro is bouncing higher as a lack of new bad news on the Greek debt
crisis front allows for a relief rally. Indeed, bears are likely to at least
wait for the outcome of the EU leaders summit on Thursday to resume
selling in earnest. However, the situation itself has not improved, with
the chance of a default as priced into CDS rates actually up from last
week (81 per cent). I will look for short entry opportunities below the
$1.46 figure in the days ahead.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Long sterling-Swissie, short Kiwi-dollar and Swissie-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
Last weeks short euro-dollar setup with a $1.4300 breakout worked
out well; but without a $1.4000 break the trend dried up. Ill keep an
eye on this benchmark pair; but in the meantime, both my short Kiwi
dollar-dollar and Swiss franc-yen positions are in play (the latter its
first target at 94.25 so the stop is trailed). More speculative this
week, Im looking for a bullish sterling-Swiss franc break above
SFr1.3900 as the Greek crisis spreads unevenly.
Wealth Management | Foreign Exchange
In advance of Federal Reserve chairman Ben Bernanke giving a conference this afternoon, we ask a
selection of experts for their view on the monetary policy of the United States in the coming months
LON GD ONCE FIX AM...........1543.00 6.00
SILVER LDN FIX AM ..................36.45 0.67
MAPLE LEAF 1 OZ ....................51.00 -2.50
LON PLATINUM AM................1748.00 2.00
LON PALLADIUM AM...............755.00 13.00
ALUMINIUM CASH .................2490.00 -28.00
COPPER CASH ......................8934.50 -166.50
LEAD CASH...........................2375.00 -103.00
NICKEL CASH......................21405.00 -500.00
TIN CASH.............................24670.00 -420.00
ZINC CASH ............................2148.00 -51.50
BRENT SPOT INDEX................112.00 0.26
SOYA .....................................1335.75 2.75
COCOA..................................2967.00 50.00
COFFEE...................................243.60 -5.95
KRUG.....................................1596.50 3.10
WHEAT ....................................174.12 1.88
AIR LIQUIDE........................................95.06 1.90 100.65 79.85
ALLIANZ..............................................95.56 2.21 108.85 78.99
ALSTOM..............................................42.48 0.51 45.32 30.78
ANHEUS-BUSCH INBEV ....................40.11 0.27 46.33 38.68
ARCELORMITTAL...............................22.52 0.41 28.55 20.26
AXA......................................................15.38 0.38 16.16 10.88
BANCO SANTANDER...........................8.03 0.16 10.23 7.00
BASF SE..............................................65.20 2.40 70.22 40.74
BAYER.................................................57.68 0.29 59.44 43.27
BBVA......................................................8.04 0.21 10.71 6.75
BMW....................................................64.85 0.95 65.49 37.80
BNP PARIBAS.....................................53.08 1.33 59.93 43.13
CARREFOUR ......................................27.31 0.45 41.28 25.95
CREDIT AGRICOLE............................10.33 0.33 12.92 8.13
CRH PLC .............................................14.72 0.42 19.92 11.51
DAIMLER.............................................48.56 1.00 59.09 37.03
DANONE..............................................52.15 -0.13 52.84 41.00
DEUTSCHE BANK..............................41.25 1.01 51.61 35.93
DEUTSCHE BOERSE .........................52.61 0.79 62.48 46.33
DEUTSCHE TELEKOM.......................10.62 0.11 11.38 9.50
E.ON.....................................................19.33 0.27 25.54 18.25
ENEL......................................................4.32 0.02 4.86 3.42
ENI .......................................................16.07 0.35 18.66 14.62
FRANCE TELECOM............................14.52 0.15 17.45 14.01
GDF SUEZ ...........................................24.64 0.51 30.05 22.64
GENERALI ASS...................................14.52 0.36 17.05 13.31
IBERDROLA..........................................6.09 0.10 6.50 4.38
ING GROEP CVA...................................8.28 0.20 9.50 5.92
INTESA SANPAOLO.............................1.86 0.06 2.53 1.65
KON.PHILIPS ELECTR.......................17.98 0.26 26.87 17.35
L'OREAL..............................................87.56 1.17 90.00 75.03
LVMH..................................................116.70 3.55 129.05 84.85
MUNICH RE.......................................104.20 1.45 126.00 99.62
NOKIA....................................................4.21 0.16 8.49 4.03
REPSOL YPF.......................................22.86 0.59 24.90 16.30
RWE.....................................................38.07 0.75 58.10 36.87
SAINT-GOBAIN...................................42.58 1.16 47.64 27.81
SANOFI ................................................52.44 0.44 56.50 44.01
SAP......................................................43.05 0.72 46.15 34.13
SCHNEIDER ELECTRIC ...................113.30 3.70 123.65 79.70
SIEMENS .............................................93.48 1.83 99.39 70.02
SOCIETE GENERALE.........................40.18 1.41 52.70 32.50
TELECOM ITALIA..................................0.93 0.02 1.16 0.89
TELEFONICA ......................................16.58 0.19 19.69 14.95
TOTAL..................................................38.88 0.82 44.55 35.66
UNIBAIL-RODAMCO SE...................155.75 3.05 159.30 111.60
UNICREDIT............................................1.52 0.03 2.24 1.41
UNILEVER CVA...................................22.35 0.01 24.11 20.68
VINCI ....................................................43.12 1.22 45.48 33.01
VIVENDI ...............................................18.93 0.47 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5775.31 81.92 1.44
FTSE 250 INDEX. . . . . . . . 11654.92 117.08 1.01
FTSE UK ALL SHARE . . . . 3011.74 40.48 1.36
FTSE AIM ALL SH . . . . . . . . 846.77 2.11 0.25
DOWJONES INDUS 30 . . 12190.01 109.63 0.91
S&P 500 . . . . . . . . . . . . . . . 1295.52 17.16 1.34
NASDAQ COMPOSITE . . . 2687.26 57.60 2.19
FTSEUROFIRST 300 . . . . . 1096.95 15.76 1.46
NIKKEI 225 AVERAGE. . . . 9459.66 105.34 1.13
DAX 30 PERFORMANCE. . 7285.51 135.30 1.89
CAC 40 . . . . . . . . . . . . . . . . 3877.07 77.41 2.04
SHANGHAI SE INDEX . . . . 2646.48 25.23 0.96
HANG SENG. . . . . . . . . . . 21850.59 251.08 1.16
S&P/ASX 20 INDEX . . . . . . 2715.10 37.00 1.38
ASX ALL ORDINARIES . . . 4565.20 52.70 1.17
BOVESPA SAO PAOLO. . 61423.61 255.37 0.42
ISEQ OVERALL INDEX . . . 2907.42 34.50 1.20
STI . . . . . . . . . . . . . . . . . . . . 3053.51 39.91 1.32
IGBM. . . . . . . . . . . . . . . . . . 1039.39 18.83 1.85
SWISS MARKET INDEX. . . 6171.01 57.31 0.94
Price Chg %chg
3M........................................................93.43 0.87 97.95 76.8
ABBOTT LABS ...................................52.26 0.24 54.24 44.5
ALCOA ................................................15.37 0.59 18.47 9.8
ALTRIA GROUP..................................27.31 -0.01 28.13 19.5
AMAZON.COM..................................194.23 6.51 206.39 105.8
AMERICAN EXPRESS........................49.55 0.67 51.97 37.3
AMGEN INC.........................................58.17 -0.28 61.53 50.3
APPLE...............................................325.30 9.98 364.90 236.7
AT&T....................................................31.11 0.15 31.94 23.8
BANK OF AMERICA...........................10.83 0.23 16.10 10.4
BERKSHIRE HATAW B.......................76.49 0.39 87.65 73.2
BOEING CO.........................................73.98 -0.54 80.65 59.4
BRISTOL MYERS SQUI ......................27.98 0.17 28.99 20.0
CATERPILLAR..................................101.39 3.21 116.55 58.0
CHEVRON.........................................101.59 1.68 109.94 66.8
CISCO SYSTEMS................................15.51 0.37 26.00 14.7
CITIGROUP.........................................39.31 1.15 51.50 36.2
COCA-COLA.......................................66.26 0.43 68.77 49.4
COLGATE PALMOLIVE......................88.92 -0.19 89.36 73.1
CONOCOPHILLIPS.............................73.73 1.46 81.80 48.0
DU PONT(EI) DE NMR........................51.72 1.33 57.00 33.7
EXXON MOBIL....................................80.57 0.86 88.23 55.9
GENERAL ELECTRIC.........................18.81 0.33 21.65 13.7
GOLDMAN SACHS GRP..................135.96 0.86 175.34 129.5
GOOGLE A........................................493.00 8.42 642.96 433.6
HEWLETT PACKARD.........................35.30 0.31 49.39 33.9
HOME DEPOT.....................................35.43 0.66 39.38 26.6
IBM.....................................................166.22 1.20 173.54 120.6
INTEL CORP .......................................21.65 0.33 26.78 17.6
J.P.MORGAN CHASE.........................40.91 0.43 48.36 35.1
JOHNSON & JOHNSON.....................66.49 -0.02 67.37 56.8
KRAFT FOODS A................................34.81 0.01 35.44 24.3
MC DONALD'S CORP ........................82.80 0.11 83.08 65.3
MERCK AND CO. NEW......................35.78 -0.01 37.68 31.0
MICROSOFT........................................24.76 0.29 29.46 22.7
OCCID. PETROLEUM.......................102.40 0.90 117.89 72.1
ORACLE CORP...................................32.65 0.74 36.50 21.2
PEPSICO.............................................68.93 -0.05 71.89 60.3
PFIZER ................................................20.43 0.16 21.45 14.0
PHILIP MORRIS INTL .........................68.05 -1.03 71.75 44.9
PROCTER AND GAMBLE ..................64.22 -0.87 67.72 56.5
QUALCOMM INC ................................54.43 0.95 59.84 31.6
SCHLUMBERGER ..............................83.50 1.37 95.64 52.9
TRAVELERS CIES..............................58.08 0.51 64.17 48.1
UNITED TECHNOLOGIE ....................85.56 0.02 90.67 63.6
UNITEDHEALTH GROUP...................52.22 0.95 52.25 27.1
VERIZON COMMS ..............................35.99 0.34 38.95 25.8
WAL-MART STORES..........................53.29 0.25 57.90 47.7
WALT DISNEY CO ..............................38.78 0.55 44.34 30.7
WELLS FARGO & CO.........................27.46 0.51 34.25 23.0
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 ............................0.545 0.00
LIBOR Euro - overnight ..................1.285 -0.02
LIBOR Euro - 12 months.................2.118 0.00
LIBOR USD - overnight...................0.127 0.00
LIBOR USD - 12 months.................0.727 0.00
Halifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US long bond yield .........................4.020 0.03
European repo rate.........................1.291 -0.01
Euro Euribor ....................................1.310 0.01
The vix index ...................................18.77 -1.21
The baltic dry index ........................1.418 0.00
Markit iBoxx...................................220.44 -0.35
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
/$ 1.4388 0.0080
/ 0.8869 0.0038
/ 115.33 0.5010
/ 1.1276 0.0051
/$ 1.6224 0.0023
/ 130.00 0.0381
FTSE 100
5775.31
81.92
FTSE 250
11654.92
117.08
FTSE ALLSHARE
3011.74
40.48
DOW
12190.01
109.63
NASDAQ
2687.26
57.60
S&P 500
1295.52
17.16
Rexam . . . . . . . . . . . .374.4 7.6 400.0 290.4
RPC Group . . . . . . . .354.0 13.2 361.1 199.9
Smiths Group . . . . .1119.9 17.0 1429.0 1043.0
Brown (N.) Group . . .269.1 2.9 311.2 221.0
Carpetright . . . . . . . . .690.0 -2.5 835.5 631.0
Debenhams . . . . . . . . .69.0 0.9 77.4 53.0
Dignity . . . . . . . . . . . .748.5 7.5 785.0 627.5
Dixons Retail . . . . . . .15.4 -0.1 28.5 11.8
DunelmGroup . . . . . .393.5 -6.5 550.0 325.3
Halfords Group . . . . .399.1 2.7 550.0 348.2
Home Retail Group . .166.4 -0.1 244.5 165.5
Inchcape . . . . . . . . . .394.5 7.3 414.0 237.1
JD Sports Fashion . .900.0 13.5 1005.0 683.0
Kesa Electricals . . . .133.9 -3.2 174.0 109.8
Kingfisher . . . . . . . . .264.2 0.7 287.1 198.5
Marks & Spencer G . .364.8 4.7 427.5 327.2
Mothercare . . . . . . . .386.8 0.3 627.5 382.0
Next . . . . . . . . . . . . .2254.0 29.0 2326.0 1868.0
Sports Direct Int . . . .228.6 -1.4 234.1 101.1
WH Smith . . . . . . . . . .465.9 1.5 523.0 398.2
Smith & Nephew . . . .649.5 5.5 742.0 537.5
Synergy Health . . . . .901.5 -4.5 948.0 640.0
Barratt Developme . .110.6 2.5 119.0 70.1
Yule Catto & Co . . . . .230.1 2.7 240.5 112.7
Balfour Beatty . . . . . .306.2 9.5 357.3 229.8
Keller Group . . . . . . .443.2 -7.2 698.5 442.3
Kier Group . . . . . . . .1333.0 -37.0 1418.0 886.5
Drax Group . . . . . . . .486.2 6.3 488.3 353.6
Scottish & Southe . .1385.8 21.0 1410.0 1108.0
Domino Printing S . .659.0 -5.0 705.0 433.0
Halma . . . . . . . . . . . . .393.6 6.4 396.5 265.4
Laird . . . . . . . . . . . . . .199.0 -0.5 202.2 98.8
Morgan Crucible C . .300.2 6.4 333.0 179.5
Renishaw . . . . . . . . .1705.0 -1.0 1819.0 709.0
Spectris . . . . . . . . . .1549.0 28.0 1581.0 740.5
Aberforth Smaller . . .690.0 -4.0 714.0 506.0
Alliance Trust . . . . . .372.9 5.1 385.0 293.5
Bankers Inv Trust . . .416.5 1.5 428.0 337.0
BH Global Ltd. GB .1108.0 4.0 1174.0 1058.0
BH Global Ltd. US . . . .10.9 0.1 11.6 10.4
BH Macro Ltd. EUR . . .17.1 0.1 17.2 15.8
BH Macro Ltd. GBP 1775.0 0.0 1775.0 1630.0
BH Macro Ltd. USD . . .17.1 0.1 17.1 15.8
BlackRock World M .735.5 16.5 815.5 533.0
BlueCrest AllBlue . . .174.3 0.2 176.2 163.8
British Assets Tr . . . .133.0 2.0 140.5 105.0
British Empire Se . . .507.0 2.0 533.0 404.1
Caledonia Investm .1710.0 14.0 1928.0 1539.0
City of London In . . .294.0 3.5 303.2 235.0
Dexion Absolute L . .145.6 0.6 151.0 131.2
Edinburgh Dragon . .238.0 3.8 262.1 205.3
Edinburgh Inv Tru . . .475.0 7.1 492.2 372.2
Electra Private E . . .1721.0 -11.0 1755.0 1177.0
F&C Inv Trust . . . . . .310.9 2.7 317.5 251.4
Fidelity China Sp . . . . .95.2 0.8 128.7 93.5
Fidelity European . .1236.0 7.0 1287.0 916.0
Fidelity Special . . . . .566.0 3.5 595.0 503.0
Herald Inv Trust . . . . .523.5 1.5 541.0 352.5
HICL Infrastructu . . . .115.3 -0.1 121.3 112.0
Impax Environment .117.2 1.0 130.5 106.5
JPMorgan American .862.0 10.0 909.0 673.0
JPMorgan Asian In . .225.0 0.7 250.8 187.1
JPMorgan Emerging .576.5 4.0 639.0 479.5
JPMorgan European .908.0 8.0 983.5 618.0
JPMorgan Indian I . . .406.4 4.0 502.0 394.1
JPMorgan Russian .650.5 8.5 755.0 502.0
Law Debenture Cor . .365.9 4.9 372.4 273.3
Mercantile Inv Tr . . .1082.0 15.0 1137.0 840.0
Merchants Trust . . . .416.0 5.6 431.8 320.0
Monks Inv Trust . . . .344.0 3.9 367.9 275.5
Murray Income Tru . .650.0 13.0 672.0 518.0
Murray Internatio . . .944.0 9.5 966.0 805.5
Perpetual Income . . .267.6 3.9 276.0 212.0
Polar Cap Technol . .346.0 4.9 391.2 275.6
RIT Capital Partn . . .1304.0 -5.0 1328.0 1107.0
Scottish Inv Trus . . . .491.1 5.6 517.0 401.5
Scottish Mortgage . .718.5 6.0 764.0 533.0
SVG Capital . . . . . . . .260.0 3.0 279.8 140.0
Temple Bar Inv Tr . . .924.0 6.0 947.5 717.0
Templeton Emergin .623.5 6.5 689.5 515.0
TR Property Inv T . . .190.0 -0.1 201.0 132.3
TR Property Inv T . . . .88.3 0.1 91.0 59.5
Witan Inv Trust . . . . .503.0 4.1 528.0 409.9
3i Group . . . . . . . . . . .272.9 6.0 340.0 254.1
3i Infrastructure . . . . .119.5 0.1 125.2 108.9
Aberdeen Asset Ma .216.1 2.5 240.0 123.0
Ashmore Group . . . .383.9 4.4 393.9 236.5
Berkeley Technolo . . . .4.3 0.0 9.0 2.2
Brewin Dolphin Ho . .144.8 -2.2 185.4 114.0
Camellia . . . . . . . . .10472.0-228.010950.07600.0
Charles Taylor Co . . .150.0 8.9 234.0 122.0
City of London Gr . . . .81.5 -2.0 93.6 70.7
City of London In . . .410.0 -2.8 461.5 273.5
Close Brothers Gr . . .764.5 5.5 888.5 664.0
Collins Stewart H . . . .74.0 -1.0 90.8 67.3
Evolution Group . . . . .66.0 0.0 92.0 65.0
F&C Asset Managem .73.6 0.6 92.9 47.5
Hargreaves Lansdo .603.5 7.5 646.5 317.4
Helphire Group . . . . . . .3.8 -0.2 44.0 3.2
Henderson Group . . .142.4 0.9 173.1 118.1
Highway Capital . . . . .19.5 4.0 21.0 6.0
ICAP . . . . . . . . . . . . . .450.4 7.1 570.5 380.2
IG Group Holdings . .429.9 4.2 553.0 420.0
Intermediate Capi . . .311.4 8.9 360.3 240.4
International Per . . . .339.2 6.3 386.6 183.3
International Pub . . . .116.0 1.0 118.3 108.6
Investec . . . . . . . . . . .487.3 9.1 538.0 429.2
IP Group . . . . . . . . . . . .46.0 -1.0 53.8 27.9
Jupiter Fund Mana . .250.0 -5.3 337.3 180.3
Liontrust Asset M . . . .81.0 0.0 95.3 70.0
LMS Capital . . . . . . . . .61.3 0.5 64.8 40.0
London Finance & . . .21.0 0.0 23.5 16.5
London Stock Exch .957.5 17.5 990.0 544.0
Lonrho . . . . . . . . . . . . .18.8 0.3 19.8 10.0
Man Group . . . . . . . . .230.6 9.1 311.0 206.4
Paragon Group Of . .191.0 -1.8 206.1 114.4
Provident Financi . . .978.0 0.5 1033.0 728.5
Rathbone Brothers .1092.0 1.0 1257.0 762.5
Record . . . . . . . . . . . . .35.5 0.5 53.5 20.3
RSM Tenon Group . . .25.0 -0.3 66.3 21.3
Schroders . . . . . . . .1506.0 23.0 1922.0 1154.0
Schroders (Non-Vo .1266.0 22.0 1554.0 950.5
Tullett Prebon . . . . . .345.3 1.9 428.6 307.5
Walker Crips Grou . . .49.5 0.5 52.1 46.5
BT Group . . . . . . . . . .198.6 2.9 201.9 126.3
Cable & Wireless . . . .38.7 0.9 61.4 37.8
Cable & Wireless . . . .51.1 2.2 92.0 46.6
COLT Group SA . . . .143.7 -0.2 156.2 109.0
TalkTalk Telecom . . .148.3 -0.2 168.3 114.3
TelecomPlus . . . . . . .637.5 -62.5 700.0 327.0
Booker Group . . . . . . .67.0 0.1 70.3 39.5
Greggs . . . . . . . . . . . .507.5 0.0 542.0 418.7
Morrison (Wm) Sup .294.9 0.1 308.3 261.2
Ocado Group . . . . . . .199.9 -3.2 285.0 123.5
Sainsbury (J) . . . . . . .322.2 -1.4 395.0 317.2
Tesco . . . . . . . . . . . . .402.4 -1.5 440.7 377.5
Associated Britis . .1058.0 -5.0 1182.0 940.0
Cranswick . . . . . . . . .757.5 -1.5 907.5 735.0
Dairy Crest Group . . .377.3 -1.1 424.9 339.7
Devro . . . . . . . . . . . . .260.0 -8.7 296.9 181.5
Premier Foods . . . . . . .25.7 0.5 35.1 16.0
Tate & Lyle . . . . . . . . .639.0 -3.0 656.0 409.1
Unilever . . . . . . . . . .1958.0 10.0 2000.0 1688.0
Mondi . . . . . . . . . . . . .604.0 13.5 630.0 367.6
Centrica . . . . . . . . . . .321.6 4.5 346.1 292.8
International Pow . . .312.2 1.2 448.6 295.9
National Grid . . . . . . .590.5 5.5 632.5 485.0
Northumbrian Wate .374.9 -3.7 387.0 295.5
Pennon Group . . . . . .651.0 2.0 675.0 545.5
Severn Trent . . . . . .1443.0 7.0 1517.0 1216.0
United Utilities . . . . .595.5 -4.5 632.0 520.0
Cookson Group . . . . .651.5 26.5 724.5 367.4
DS Smith . . . . . . . . . .215.0 1.8 226.0 116.0
Glencore Internat . . .495.2 16.0 531.1 473.0
BAE Systems . . . . . .307.6 0.1 369.9 294.7
Chemring Group . . . .648.5 11.5 736.5 519.6
Cobham . . . . . . . . . . .207.4 2.7 247.6 192.3
Meggitt . . . . . . . . . . . .361.7 8.3 380.9 261.7
QinetiQ Group . . . . . .116.7 1.0 136.3 96.7
Rolls-Royce Group . .600.5 5.5 665.0 535.0
Senior . . . . . . . . . . . . .164.1 0.5 168.0 111.2
Ultra Electronics . . .1599.0 10.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .211.2 7.1 237.1 109.3
Barclays . . . . . . . . . . .258.9 6.4 344.0 252.6
HSBC Holdings . . . . .609.0 5.5 730.9 596.2
Lloyds Banking Gr . . .47.3 0.2 77.6 46.7
Royal Bank of Sco . . .38.9 0.4 52.1 37.6
Standard Chartere .1575.0 12.5 1950.0 1525.0
AG Barr . . . . . . . . . .1349.0 1.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .398.8 1.9 518.0 364.5
Diageo . . . . . . . . . . .1265.4 13.0 1301.0 1033.0
SABMiller . . . . . . . . .2103.0 -79.0 2306.0 1827.0
AZ Electronic Mat . . .305.0 2.0 338.1 248.5
Croda Internation . .1889.0 28.0 1962.0 971.0
Elementis . . . . . . . . . .161.6 1.9 169.8 58.8
Johnson Matthey . .1973.0 42.0 2119.0 1460.0
Victrex . . . . . . . . . . .1444.0 1.0 1525.0 1049.0
Price Chg High Low
Bellway . . . . . . . . . . . .709.0 2.5 753.5 511.0
Berkeley Group Ho .1166.0 5.0 1181.0 763.5
Bovis Homes Group .424.9 1.3 464.7 326.6
Persimmon . . . . . . . .463.5 6.1 502.5 336.5
Reckitt Benckiser . .3350.0 -22.0 3648.0 3015.0
Redrow . . . . . . . . . . . .119.9 0.8 139.0 97.5
Taylor Wimpey . . . . . . .37.0 1.0 43.3 22.3
Bodycote . . . . . . . . . .348.4 10.1 397.7 185.0
Charter Internati . . . .550.0 11.5 853.5 538.5
Fenner . . . . . . . . . . . .380.0 5.5 393.8 192.2
IMI . . . . . . . . . . . . . . .1017.6 19.5 1112.0 657.5
Melrose . . . . . . . . . . .342.0 11.8 355.5 203.4
Northgate . . . . . . . . . .299.6 -5.9 346.7 152.3
Rotork . . . . . . . . . . .1601.0 16.0 1895.0 1254.0
Spirax-Sarco Engi . .1904.0 3.0 2063.0 1346.0
Weir Group . . . . . . .2054.4 66.0 2060.0 1024.0
Ferrexpo . . . . . . . . . . .435.0 12.5 499.0 235.0
Talvivaara Mining . . .414.0 11.4 622.0 352.3
BBAAviation . . . . . . .209.1 2.1 240.8 175.0
Stobart Group Ltd . . .140.9 -0.2 163.6 124.1
Admiral Group . . . . .1678.0 3.0 1754.0 1390.0
Haynes Publishing . .246.0 1.0 262.5 202.5
Huntsworth . . . . . . . . .73.8 -1.3 87.5 65.0
Informa . . . . . . . . . . . .418.8 4.1 461.1 342.1
ITE Group . . . . . . . . . .218.4 1.4 258.2 136.2
ITV . . . . . . . . . . . . . . . . .67.3 2.1 93.5 48.3
Johnston Press . . . . . . .5.2 -0.2 20.0 4.4
MecomGroup . . . . . .226.5 -3.5 310.0 162.0
Moneysupermarket. .101.0 -1.0 109.3 64.6
Pearson . . . . . . . . . .1139.0 -11.0 1175.0 864.0
Reed Elsevier . . . . . .537.5 2.5 590.5 490.2
Rightmove . . . . . . . .1105.0 -13.0 1119.0 596.5
STV Group . . . . . . . . .129.8 0.7 168.0 66.0
Tarsus Group . . . . . .154.0 4.0 165.0 112.5
Trinity Mirror . . . . . . . .41.0 -1.0 124.3 39.9
United Business M . .519.5 -6.5 725.0 483.8
UTV Media . . . . . . . . .124.0 -1.0 151.0 106.0
Wilmington Group . . .119.0 -1.0 183.0 114.0
WPP . . . . . . . . . . . . . .743.0 3.0 846.5 614.5
Yell Group . . . . . . . . . . .5.7 -0.0 30.3 5.6
African Barrick G . . .400.0 2.1 651.0 393.5
Anglo American . . .2915.0 99.0 3437.0 2254.0
Anglo Pacific Gro . . .296.5 -6.5 369.3 249.0
Antofagasta . . . . . . .1272.0 62.0 1634.0 761.0
Aquarius Platinum . .303.5 8.8 419.0 227.1
BHP Billiton . . . . . . .2315.0 56.5 2631.5 1684.5
Amlin . . . . . . . . . . . . .409.3 4.1 433.0 375.3
Beazley . . . . . . . . . . . .122.0 0.2 139.2 109.1
Catlin Group Ltd. . . .419.0 -1.4 421.4 325.0
Hiscox Ltd. . . . . . . . . .421.5 -0.7 424.7 336.1
Jardine Lloyd Tho . . .678.5 -2.0 709.0 521.5
Lancashire Holdin . . .649.5 5.5 660.0 491.1
RSA Insurance Gro . .132.3 0.4 143.5 117.9
Aviva . . . . . . . . . . . . . .427.1 11.1 477.9 305.8
Legal & General G . . .113.7 2.1 123.8 75.6
Old Mutual . . . . . . . . .127.9 3.0 145.2 102.0
Phoenix Group Hol . .614.5 0.5 758.0 584.5
Prudential . . . . . . . . .715.0 13.5 777.0 489.2
Resolution Ltd. . . . . .302.2 2.4 316.1 211.3
St James's Place . . . .331.8 5.3 360.4 204.2
Standard Life . . . . . . .205.7 3.8 244.7 173.0
4Imprint Group . . . . .265.0 8.0 295.0 195.0
Aegis Group . . . . . . .148.6 1.6 152.0 103.6
Bloomsbury Publis . .124.8 -1.3 138.0 108.5
British Sky Broad . . .829.5 -0.5 849.0 693.5
Centaur Media . . . . . . .53.0 -0.3 73.0 45.8
Chime Communicati .285.5 3.5 298.5 158.0
Creston . . . . . . . . . . .120.0 8.0 121.0 78.5
Daily Mail and Ge . . .444.0 2.4 594.5 433.0
Euromoney Institu . .632.0 -10.0 736.0 575.5
Future . . . . . . . . . . . . . .17.8 0.1 30.0 15.8
Centamin Egypt Lt . .120.7 4.0 197.1 114.5
Eurasian Natural . . .742.1 17.0 1125.0 716.0
Fresnillo . . . . . . . . . .1368.0 61.0 1682.0 950.0
GemDiamonds Ltd. .240.0 0.5 306.0 186.3
Hochschild Mining . .442.6 14.6 680.0 289.4
Kazakhmys . . . . . . .1297.4 66.1 1671.0 965.0
Kenmare Resources . .49.9 1.3 50.4 11.5
Lonmin . . . . . . . . . . .1425.0 41.0 1983.0 1355.0
New World Resourc .920.0 2.0 1060.0 890.0
Petropavlovsk . . . . . .729.5 51.5 1365.0 678.0
Randgold Resource 4783.0 146.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4218.0 123.0 4712.0 2880.5
Vedanta Resources 1971.6 65.0 2583.0 1839.0
Xstrata . . . . . . . . . . .1285.0 27.0 1550.0 845.8
Inmarsat . . . . . . . . . . .595.5 5.0 762.0 564.5
Vodafone Group . . . .164.0 1.7 181.9 136.5
Genesis Emerging . .510.5 1.0 568.0 439.1
Afren . . . . . . . . . . . . . .159.5 2.2 171.2 79.2
BG Group . . . . . . . . .1346.0 35.0 1564.5 1002.0
BP . . . . . . . . . . . . . . . .443.0 16.1 509.0 302.9
Cairn Energy . . . . . . .402.0 7.9 493.2 366.0
EnQuest . . . . . . . . . . .123.1 1.7 158.5 96.0
Essar Energy . . . . . .417.3 3.4 589.5 387.1
Exillon Energy . . . . . .415.1 5.2 469.7 166.5
Heritage Oil . . . . . . . .216.0 0.5 486.0 214.0
JKX Oil & Gas . . . . . .264.0 -1.2 335.1 228.0
Premier Oil . . . . . . . . .472.0 7.3 535.0 292.8
Royal Dutch Shell . .2158.5 44.0 2326.5 1624.0
Royal Dutch Shell . .2168.5 48.0 2336.0 1554.0
Salamander Energy .260.0 3.0 317.6 210.0
Soco Internationa . . .366.6 3.5 484.2 292.0
Tullow Oil . . . . . . . . .1274.0 33.0 1493.0 991.5
Amec . . . . . . . . . . . .1109.3 41.0 1251.0 805.5
Hunting . . . . . . . . . . .742.5 16.0 817.0 439.4
John Wood Group . .634.5 11.0 706.0 308.4
Lamprell . . . . . . . . . . .336.2 2.7 364.4 186.3
Petrofac Ltd. . . . . . .1544.0 57.0 1685.0 1141.0
Burberry Group . . . .1355.6 29.0 1365.0 739.5
PZ Cussons . . . . . . . .353.6 -10.9 409.0 317.9
Supergroup . . . . . . . .908.0 45.0 1820.0 673.5
AstraZeneca . . . . . .3025.0 -5.0 3385.0 2801.5
BTG . . . . . . . . . . . . . .271.1 0.9 282.5 191.0
Genus . . . . . . . . . . . .1002.0 -3.0 1046.0 704.5
GlaxoSmithKline . . .1275.0 -0.5 1348.5 1095.0
Hikma Pharmaceuti .764.0 6.5 900.0 683.0
Shire Plc . . . . . . . . . .1845.0 9.0 1961.0 1341.0
Capital & Countie . . .187.0 5.3 187.0 104.1
Daejan Holdings . . .2745.0 58.0 2919.0 2251.0
F&C Commercial Pr .105.9 -0.1 108.0 88.0
Grainger . . . . . . . . . . .122.0 -0.1 128.2 86.3
London & Stamford .131.5 0.0 140.0 110.3
Savills . . . . . . . . . . . . .392.0 -0.7 427.1 273.1
St. Modwen Proper . .186.1 0.4 192.0 135.4
UK Commercial Pro . .81.2 -1.0 85.5 74.3
Unite Group . . . . . . . .215.7 3.7 229.8 170.5
Big Yellow Group . . .308.3 -1.7 353.3 287.1
British Land Co . . . . .583.8 13.0 604.5 429.0
Capital Shopping . . .385.6 11.1 424.8 301.3
Derwent London . . .1810.0 16.0 1871.0 1208.0
Great Portland Es . . .426.6 -1.2 442.2 281.0
Hammerson . . . . . . . .471.6 6.7 486.3 336.3
Hansteen Holdings . . .87.5 0.1 89.3 59.4
Land Securities G . . .854.0 11.5 855.5 545.0
SEGRO . . . . . . . . . . . .312.2 1.8 331.3 250.2
Shaftesbury . . . . . . . .520.5 8.5 539.0 349.3
Autonomy Corporat 1741.0 53.0 1964.0 1271.0
Aveva Group . . . . . .1700.0 31.0 1743.0 1127.0
Computacenter . . . . .450.7 -4.3 489.7 260.0
Fidessa Group . . . . .1955.0 25.0 1992.0 1300.0
Invensys . . . . . . . . . . .317.5 9.6 364.3 230.2
Kofax . . . . . . . . . . . . .470.0 3.0 535.0 231.0
Logica . . . . . . . . . . . .131.5 3.1 147.2 101.7
Micro Focus Inter . . .360.1 5.2 541.5 276.0
Misys . . . . . . . . . . . . .418.9 34.4 430.0 232.8
Sage Group . . . . . . . .283.7 5.7 302.0 222.7
SDL . . . . . . . . . . . . . . .685.5 -4.0 711.5 450.0
Telecity Group . . . . . .546.0 1.5 549.5 377.0
Aggreko . . . . . . . . . .1873.8 1.0 1935.0 1346.0
Ashtead Group . . . . .170.5 2.4 207.9 77.0
Atkins (WS) . . . . . . . .749.0 -11.0 820.0 650.0
Babcock Internati . . .685.5 -4.5 704.5 492.8
Berendsen . . . . . . . . .491.1 8.1 519.5 360.2
Bunzl . . . . . . . . . . . . .751.5 5.0 783.0 658.0
Capita Group . . . . . . .739.5 -2.0 794.5 635.5
Carillion . . . . . . . . . . .371.7 8.1 403.2 291.2
De La Rue . . . . . . . . .750.5 -2.5 966.0 549.5
Electrocomponents .274.2 4.3 294.9 205.7
Experian . . . . . . . . . . .774.1 0.0 819.0 578.0
Filtrona PLC . . . . . . . .362.5 0.7 385.5 209.2
G4S . . . . . . . . . . . . . . .283.3 3.9 291.0 237.7
Hays . . . . . . . . . . . . . .102.0 -0.5 133.6 88.4
Homeserve . . . . . . . .522.0 2.5 532.0 398.6
Howden Joinery Gr . .105.7 3.2 127.5 56.8
Intertek Group . . . . .1934.0 13.0 2148.0 1437.0
Michael Page Inte . . .528.0 4.5 567.0 349.4
Mitie Group . . . . . . . .234.6 -1.4 242.5 188.7
Premier Farnell . . . . .239.3 -3.9 308.8 210.2
Regus . . . . . . . . . . . . .108.4 3.3 119.0 66.1
Rentokil Initial . . . . . . .95.0 1.2 121.7 84.3
RPS Group . . . . . . . . .239.0 7.8 251.4 169.8
Serco Group . . . . . . .565.0 4.0 633.0 529.5
Shanks Group . . . . . .124.4 2.4 130.9 96.5
SIG . . . . . . . . . . . . . . .138.5 0.3 153.5 90.7
SThree . . . . . . . . . . . .379.0 1.3 447.6 231.1
Travis Perkins . . . . .1011.0 15.5 1127.0 709.0
Wolseley . . . . . . . . .1965.0 81.0 2261.0 1223.0
ARM Holdings . . . . . .567.5 16.5 651.0 270.5
CSR . . . . . . . . . . . . . .307.5 2.0 447.0 280.9
Imagination Techn . .433.0 5.0 502.0 273.0
Pace . . . . . . . . . . . . . .106.7 1.0 231.8 93.0
Spirent Communica .150.9 1.8 160.3 107.6
British American . .2667.3 18.0 2745.5 2091.0
Imperial Tobacco . .2000.0 -23.0 2231.0 1784.0
Avis Europe . . . . . . . .310.5 -0.6 313.0 184.0
Betfair Group . . . . . . .801.0 -19.0 1550.0 753.0
Bwin.party Digita . . .132.0 -4.4 309.5 127.5
Carnival . . . . . . . . . .2324.0 132.0 3153.0 2037.0
Compass Group . . . .591.0 8.5 598.5 501.0
Domino's Pizza UK . .385.0 5.0 586.0 373.9
easyJet . . . . . . . . . . . .354.4 4.0 479.0 322.3
Enterprise Inns . . . . . .66.9 0.9 122.7 66.0
FirstGroup . . . . . . . . .329.4 2.4 412.6 311.3
Go-Ahead Group . . .1516.0 36.0 1517.0 1042.0
Greene King . . . . . . .486.8 0.9 502.5 392.1
InterContinental . . .1197.0 30.0 1435.0 982.0
International Con . . .241.6 4.9 305.0 186.5
JD Wetherspoon . . . .433.4 1.0 468.3 386.
Ladbrokes . . . . . . . . .147.7 0.9 152.2 122.
Marston's . . . . . . . . . . .99.2 0.1 117.1 90.
Millennium& Copt . .486.1 17.0 600.5 392.
Mitchells & Butle . . . .316.3 -0.5 361.0 274.
National Express . . .251.8 1.3 270.2 213.
Punch Taverns . . . . . .70.8 1.5 90.4 58.
Rank Group . . . . . . . .150.0 -0.7 153.0 94.
Restaurant Group . . .288.7 2.1 335.0 208.
Stagecoach Group . .244.4 2.6 249.8 160.
Thomas Cook Group 130.5 1.1 204.8 129.
TUI Travel . . . . . . . . . .221.4 7.4 271.9 190.
Whitbread . . . . . . . .1587.0 102.0 1887.0 1361.
WilliamHill . . . . . . . . .216.8 1.9 223.5 155.
Abcam . . . . . . . . . . . .412.3 -6.8 428.5 241.
Albemarle & Bond . .330.0 -3.0 352.0 218.
Amerisur Resource . .25.8 0.0 29.0 11.
Andor Technology . .630.0 2.0 640.0 253.
Archipelago Resou . . .57.0 0.0 66.8 32.
ASOS . . . . . . . . . . . .2422.0 27.3 2468.0 801.
Aurelian Oil & Ga . . . .54.3 -2.5 92.0 35.
Avanti Communicat .354.4 1.1 735.0 348.
Avocet Mining . . . . . .180.5 3.0 253.5 112.
Blinkx . . . . . . . . . . . . .118.0 4.0 148.8 33.
Borders & Souther . . .52.5 0.3 93.0 52.
BowLeven . . . . . . . . .319.3 0.5 398.0 126.
Brooks Macdonald 1330.0 -3.5 1372.5 767.
Caledon Resources .108.5 0.0 108.8 23.
Conygar Investmen .112.8 1.3 120.0 101.
Cove Energy . . . . . . . .87.0 3.5 112.8 47.
Daisy Group . . . . . . . .115.0 0.0 118.3 86.
EMIS Group . . . . . . . .520.0 4.5 555.5 303.
Encore Oil . . . . . . . . . .60.3 4.8 151.5 30.
Faroe Petroleum . . . .157.0 7.0 218.3 115.
Gulfsands Petrole . . .234.8 3.5 401.5 230.
GWPharmaceutical .124.5 1.8 132.0 83.
Hamworthy . . . . . . . .627.5 7.5 684.5 293.
Hargreaves Servic .1020.0 -10.0 1051.0 556.
Healthcare Locums . .112.5 0.0 112.5 112.
Immunodiagnostic . .945.0 -5.0 980.0 594.
ImpellamGroup . . . .365.0 12.5 387.5 84.
James Halstead . . . . .470.0 8.0 485.0 306.
Kalahari Minerals . . .236.5 4.6 301.0 142.
London Mining . . . . .338.3 -1.8 436.5 211.
Lupus Capital . . . . . .112.0 0.0 150.0 72.
M. P. Evans Group . .425.3 -5.0 500.5 334.
Majestic Wine . . . . . .449.3 -0.8 470.3 292.
May Gurney Integr . .273.8 -6.1 285.0 177.
Monitise . . . . . . . . . . . .27.3 0.0 29.5 17.
Mulberry Group . . . .1548.0 65.0 1610.0 207.
Nanoco Group . . . . . . .81.5 -0.5 115.8 68.
Nautical Petroleu . . .308.0 3.0 547.0 128.
Nichols . . . . . . . . . . . .550.5 1.8 578.0 390.
Numis Corporation . .103.0 0.0 146.5 94.
Pan African Resou . . .10.5 -0.3 12.3 5.
Patagonia Gold . . . . . .48.3 -1.3 59.3 12.
Prezzo . . . . . . . . . . . . .69.0 -0.9 71.5 37.
Pursuit Dynamics . . .297.0 4.0 700.0 196.
Rockhopper Explor .272.8 -0.3 510.0 202.
RWS Holdings . . . . . .440.0 0.0 472.0 239.
Songbird Estates . . .157.0 0.0 160.3 135.
Valiant Petroleum . . .590.0 -2.5 761.5 504.
Young & Co's Brew . .650.0 -5.3 685.0 510.
Misys . . . . . . . . . . . . .418.9 9.0
Petropavlovsk . . . . . .729.5 7.6
Whitbread . . . . . . . .1587.0 6.9
Carnival . . . . . . . . . .2324.0 6.0
Kazakhmys . . . . . . .1297.4 5.4
Supergroup . . . . . . . .908.0 5.2
Antofagasta . . . . . . .1272.0 5.1
Fresnillo . . . . . . . . . .1368.0 4.7
Cable & Wireless W . .51.1 4.4
Wolseley . . . . . . . . .1965.0 4.3
Telecom Plus . . . . . . .637.5 -8.9
SABMiller . . . . . . . . .2103.0 -3.6
Devro . . . . . . . . . . . . .260.0 -3.2
Bwin.party Digital . . .132.0 -3.2
PZ Cussons . . . . . . . .353.6 -3.0
Kier Group . . . . . . . .1333.0 -2.7
Kesa Electricals . . . .133.9 -2.3
Betfair Group . . . . . . .801.0 -2.3
Anglo Pacific Grou . .296.5 -2.2
Jupiter Fund Manag .250.0 -2.1
Risers Fallers
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
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ELECTRONIC & ELECTRICAL EQ.
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MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .101.26 -0.02 103.8 101.3
Tsy 9.000 11 . . . . .100.47 -0.02 108.8 100.5
Tsy 2.500 11 . . . . .307.42 -0.01 310.0 307.4
Tsy 5.000 12 . . . .103.10 -0.05 107.2 103.1
Tsy 5.250 12 . . . .104.36 -0.04 108.5 104.4
Tsy 9.000 12 . . . .109.22 0.00 116.7 108.6
Tsy 4.500 13 . . . .106.27 -0.05 109.2 105.8
Tsy 2.500 13 . . . .286.94 -0.07 287.7 274.9
Tsy 8.000 13 . . . . .115.83 -0.06 121.3 115.8
Tsy 5.000 14 . . . . .111.39 -0.08 114.1 109.2
Tsy 7.750 15 . . . .103.75 0.00 110.8 76.0
Tsy 8.000 15 . . . .126.49 -0.11 131.6 123.7
Tsy 4.750 15 . . . . .112.05 -0.09 114.7 108.6
Tsy 2.500 16 . . . .332.37 -0.12 334.1 304.4
Tsy 4.000 16 . . . .109.28 -0.09 111.4 104.9
Tsy 12.000 17 . . .126.25 0.00 185.9 126.0
Tsy 1.250 17 . . . . .111.46 -0.13 112.1 104.9
Tsy 8.750 17 . . . .136.25 -0.42 142.2 132.9
Tsy 5.000 18 . . . . .115.00 -0.11 117.6 109.7
Tsy 4.500 19 . . . . .111.22 -0.12 113.8 105.4
Tsy 3.750 19 . . . .105.36 -0.12 107.7 99.4
Tsy 4.750 20 . . . . .112.55 -0.13 115.9 106.6
Tsy 2.500 20 . . . .339.80 -0.11 341.2 303.8
Tsy 8.000 21 . . . .141.09 -0.12 147.1 133.8
Tsy 4.000 22 . . . .104.76 -0.16 108.4 99.0
Tsy 1.875 22 . . . . .116.99 -0.20 117.8 108.5
Tsy 2.500 24 . . . .297.01 -0.14 298.9 262.1
Tsy 5.000 25 . . . . .113.17 -0.22 118.5 107.4
Tsy 1.250 27 . . . . .110.03 -0.04 111.2 100.5
Tsy 4.250 27 . . . .103.36 -0.26 108.8 97.9
Tsy 6.000 28 . . . .125.51 -0.25 132.7 119.5
Tsy 4.750 30 . . . .108.85 -0.24 115.0 103.0
Tsy 4.125 30 . . . .282.18 0.09 283.9 248.7
Tsy 4.250 32 . . . .101.80 -0.26 107.8 96.0
Tsy 4.250 36 . . . .101.02 -0.32 107.4 95.0
Tsy 4.750 38 . . . .109.52 -0.32 116.5 102.8
Tsy 4.500 42 . . . .106.10 0.00 112.8 98.9
% %
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TRADE IN...
PETROCHINA
Hong Kong listed PetroChina is the listed arm of the state-
owned China National Petroleum Company. Headquartered
in Beijing, it is Chinas biggest oil producer and is the most
valuable company by market capitalisation in the world. Its
shares are listed in both New York and Shanghai, as well as
Hong Kong.
CHINA MOBILE
China Mobile is the worlds largest mobile phone operator.
More than 600m subscribers use its nationwide mobile
telecommunications network, which is also the largest of its
kind. In 2010, Vodafone made 4.2bn in cash by selling its
3.2 per cent stake in the company. China Mobiles shares are
listed in Hong Kong and also on the New York Stock
Exchange.
BHP BILLITON
BHP Billiton is a global mining, oil and gas company head-
quartered in Melbourne, Australia. It is the largest company
in Australia in terms of market capitalisation and the third
largest in the world. Created in 2001 by the merger of the
Australian Broken Hill Proprietary Company (BHP) and the
Anglo-Dutch Billiton, its shares are listed in both Sydney and
London.
RIO TINTO
The Rio Tinto Group is a multi-national mining and resources
company headquartered in London and Melbourne. It was
founded in 1873 as a result of the purchase of a Spanish
mine complex and now has operations on six continents,
producing commodities including aluminium, copper, coal
and diamonds.
MAJOR ASIA-PACIFIC LISTINGS
China makes
the very best
of neighbours
for Australia
Wealth Management
W
HILE Australias first stock
exchange officially opened
in Melbourne in 1861,
some 10 years after the
start of the Gold Rush, the national
Australian Stock Exchange was not
established until more than 100
years later, in 1987.
But ASX Group, current owner of
the entity created by the merger of
the Australian Stock Exchange and
the Sydney Futures Exchange in July
2006, is now one of the worlds top
10 listed exchange groups by market
capitalisation.
BIG THINGS
It still wants to get bigger if it can.
The groups most recent attempt to
grow in size and influence was a
proposed merger with read
takeover by the Singapore Stock
Exchange (SGX).
The plan was to create the
regions pre-eminent exchange by
combining the strengths of ASX
through its listings, stock options
and fixed income franchises, with
SGX, the Asian gateway for interna-
tional listings, equity futures and
over-the-counter (OTC) clearing.
And had the deal gone through,
the resulting exchange would have
had a market value of US$14bn.
It would also have become the sec-
ond largest listing venue in the Asia-
Pacific region, with over 2,700 listed
companies from more than 20 coun-
tries, including 200-plus listings
from Greater China and more than
900 resource sector listings.
SINGAPORE SLUNG
However, on 8 April, the Australian
treasurer and deputy leader of the
Australian Labour Party, Wayne
Swan, decided to block the merger.
ASX Groups David Gonski says
that this will not prevent the compa-
ny seeking further ways to increase
its reach.
He said: We believe very strongly
that Australia can and should be
involved in a much wider dimension
than just Australia onshore.
SGX, meanwhile, has already
moved on to join forces with Bursa
Malaysia, the Philippine Stock
Exchange and the Stock Exchange of
Thailand, appointing US technology
firm Sungard to provide a cross-bor-
der trading platform.
The move is part of a wider plan
by the 10-country Association of
South East Asian Nations (ASEAN) to
transform itself into a unified trad-
ing bloc with free flow of capital by
2015.
While that development is bound
to be of interest to investors keen on
emerging Asian markets, those who
prefer commodities and resource
stocks will be watching closely to see
what ASX does next.
Australias steady economic
growth it is now the worlds four-
teenth largest economy has been
driven by its position as one of the
In the last of our global exchanges series,
Jessica Bown finds ASX rich with resource
stocks at home and keen on mergers away
HKEx: a global IPO hot-spot
Major names look to Hong Kong
to go public, writes Jessica Bown
T
HE Hong Kong Stock Exchange
(HKEx) is Asias third largest
exchange in terms of market
capitalisation, after Tokyo and
Shanghai.
It was first established in 1891,
although informal exchanges were
taking place in Hong Kong for some
thirty years previous to that date.
Nowadays, the exchange has
become well-known for attracting big
international companies particular-
ly those based in China that are
going public for the first time.
Italian fashion house Prada, for
example, recently chose Hong Kong
for its landmark flotation.
It is the first luxury goods group to
list in the city, hoping to tap the bur-
geoning spending power of the
Chinese consumer.
And HKEx was hoping that it would
cement its position as the worlds
biggest initial public offering (IPO)
market one that it has held for the
past two years, raising US$57.4bn in
2010 alone.
However, Pradas offering failed to
dazzle investors, forcing the company
to cut the final price of its listing by
nearly one-fifth. Its value slipped to
about 8bn as a result.
Analysts said the offering had been
hit by the volatility caused by events
in Greece, while retail investors were
put off by the fact that they would be
liable for Italian taxes when selling
the shares.
Other luxury goods brands, such as
Burberry, that have expressed an
interest in listing in Hong Kong, may
think twice as a result.
HKEx is facing increased competi-
tion for IPOs from both the US and
Shanghai, which wants to provide an
alternative for companies looking to
list closer to Chinas lucrative market.
Andrew Weir, a partner at KPMG in
Hong Kong, said: The law and regula-
tion is in the process of being
finalised, and its likely that a number
of companies will want to list in
Shanghai.
That said, HKEx is still well ahead of
London, where companies have raised
US$14bn so far this year, and has some
advantages over Shanghai.
Hong Kong is a mature market,
with well-established regulation and
corporate governance, and that
should protect its position, Weir
added.
Manoj Agarwal at Royal Bank of
Scotland also believes that things will
start to look up for the exchange soon.
As Asian inflation fears subside
and global economic certainty
increases, you will see companies
returning to the IPO markets again,
Agarwal said.
TOP FIVE HKEX LISTINGS BY MARKET CAP SOURCE: BLOOMBERG
Ticker Company Market Market Cap
Symbol HK$ trillion
857 PetroChina SEHK 2.315
1398 ICBC SEHK 1.865
939 CCB SEHK 1.605
941 China Mobile SEHK 1.397
5 HSBC SEHK 1.367
x

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ASIA-PACIFIC: FACTS AND FIGURES
Global Exchanges: Asia-Pacific
largest global suppliers of raw mate-
rials such as coal and iron ore and
one well-placed to benefit from the
near-insatiable demand for such
resources from Chinas breakneck
economic expansion.
AMBER NECTAR
So it is no surprise that the
resources sector makes up a massive
23 per cent of the Australian equity
market.
Only the financial services sector
is bigger, with a 35 per cent market
share.
One of the biggest players in the
resources field is Rio Tinto, which
first listed on the ASX in 1962 as Rio
Tinto-Zinc Corporation.
Mining giant BHP Billiton is also
listed in Australia, along with many
smaller resources companies such
as Focus Minerals.
If that sector fails to excite you,
however, beer manufacturer Fosters
is another household name that you
can invest in through the Australian
exchange.
ANALYSIS l S&P/ASX 200 index
Jan07 Jan08 Jan09 Jan10 Jan11
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,000
3,500
A HAVEN OF FREE TRADE SHOWS THE
WAY TO CHINAS OPENING MARKETS
PAUL INKSTER
HEAD OF PRODUCT,
BARCLAYS STOCKBROKERS
T
HIS week takes us to Asia-Pacific;
to Australia, Hong Kong and
Singapore. All three offer investors
access to China but none more so
than Hong Kong.
FRAGRANT HARBOUR
Hong Kong is Asias second largest
exchange by market capitalisation and
was formed in 1980 by a merger
between the Far East Exchange, Kam
Ngan Stock Exchange and Kowloon
Stock Exchange.
Now it is a leading global financial
centre, characterised by a progressive
approach to free trade and low taxes,
which make it an attractive place for
both institutions and individuals alike.
Not only is Hong Kong considered
the business capital of Asia, it is also
seen as an economic barometer for
the region.
Hong Kongs business credentials
go a long way; evidenced by
both the individuals and
companies which are
choosing to relocate there. One
example is Anthony Bolton, the
renowned fund manager, who has
recently moved to Hong Kong to
manage the China Special Situations
fund. Or even HSBC, returning home.
CHINA
For many investors, Hong Kong
is a route into China. China is
one of Hong Kongs principal
trading partners, in both goods
and services, and there are
over 3,000 Chinese businesses
based in Hong Kong plenty
of food for choice. Hong Kong
has long been considered the
international trading outlet for
China and since the 1997 handover has
been increasingly positioned as the
international financial centre for China.
Large Chinese companies such as the
Bank of China (SEHK: 3988) and
China Telecom (SEHK: 728) are listed
on the Hong Kong Stock Exchange.
OPPORTUNITIES
Prada recently chose to float on the
Hong Kong Stock Exchange, raising
HK$16.7bn (1.32bn) in institutional
and retail investment. Not only was it
the largest listing in Hong Kong so far
this year, it is the largest ever consumer
listing to take place on the exchange.
Despite the difficulties that this list-
ing experienced in practice, due to both
economic fallout from the Greek crisis
and potential Italian tax liabilities (see
article, left), Pradas groundbreaking
decision to opt for the Hong Kong
Stock Exchange, rather than one in
London or the US, could still be a
wake up call for the more tradi-
tional exchanges a reminder
of the growing lure of the
Easts fragrant harbour.
LOCATIONS
ASX
Exchange Centre, 20 Bridge Street, Sydney
SGX
2 Shenton Way, Singapore
HKEx
Exchange Square, Central, Hong Kong
OPENING TIMES
[LOCAL TIME]
ASX: 10am
SGX: 9am
HKEx: 9.30am
CLOSING TIMES
[LOCAL TIME]
ASX: 4pm
SGX: 5pm
(with a break between 12.30pm and 2pm)
HKEx: 4pm
(with a lunch break during which some trading continues
between midday and 1.30pm)
CURRENCIES
ASX: Australian dollar
SGX: Singapore dollar
HKEx: Hong Kong dollar
NUMBER OF LISTINGS
ASX: About 2,240 companies
SGX: About 800 companies
HKEx: More than 1,400 companies
MARKET CAPITALISATION
ASX: US$1.4 trillion
SGX: SG$700bn
HKEx: US$2.7 trillion
The ASX good call
Picture: GETTY
CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010
The Cygnet lacks the
acceleration of
bigger Astons, but
loses none of the
envy-factor.
CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010
And we found the car attracted a great
deal of attention on the road all posi-
tive, too.
So whats not to like? Well only the
price really. But if youre balking at the
price then you cant afford it. Remind
yourself youd rather be stuck in com-
muter traffic in an Aston Martin than
anything else, then breathe in that
leather smell. City driving has never
been like this.
CARAVAN PARADISE
If youve never salivated over a caravan, then youve never seen an
Airstream. This is the latest flagship 684 DB model with loft style
interior. Its predecessor won the Caravan Club Caravan Design
Awards for three years running and this one is even better thanks to
a complete clean sheet redesign. It costs 52,575 and sleeps four.
CAR TALK BY RYAN BORROFF
I
T used to be the richer the man the
bigger and more powerful the car.
But now, in case you hadnt noticed,
there is an emerging trend towards
expensive and increasingly stylish little
city cars. None more so than Aston
Martins pocket-sized Cygnet which is
both very stylish and very exclusive.
Aston came up with the idea for the
Cygnet when it realised so many of its
customers took their Astons out at week-
ends and commuted in something else
during the week. The resulting vehicle is
undoubtedly the worlds most luxurious
commuter car, if not the most controver-
sial. It would be an understatement to
say that the Cygnet has raised some eye-
brows amongst Aston Martin purists.
Yet bespoke it is...think Saville Row.
According to Aston Martin it takes 150
man hours to produce every car. Based
on the Toyota iQ with which it shares
its mechanicals almost every exterior
body panel bar the roof and all of the
bespoke interior are entirely new.
Available in two special edition colours,
white and black, these launch Cygnets
cars cost 39,995 (the regular Cygnet
will be priced from 30,995) but come
with bespoke luggage by Bill Amberg.
And if youre cynical about it,
remember that its target buyers
are people that spend similar
sums of money on watches,
even mobile phones.
The exterior is surpris-
ingly handsome. Theres a
chrome grille from the
same supplier as the mil-
lion-pound-plus One-77
hypercar, plus the signa-
ture side strake and
inverted rear lights famil-
iar on bigger Astons. The
alloy wheels have been cre-
ated especially for the Cygnet
too. Even the paint work is per-
fect. Not to forget that all-impor-
tant Aston Martin badge which, in
these special editions, matches the
body colour.
But its inside where most of your
money goes. Created to each customers
specification and then trimmed by hand
in as much leather as that used to to
trim the DB9, the result is an interior
that is positively sumptuous. Besides
leather theres polished aluminium,
glossy piano black surfaces and
Alcantara, plus a cool Garmin sat-
nav on the dash. As intuitive to
use as any Ive seen.
But this smallest Aston
Martin of all time is also the
slowest. Acceleration time is
an un-Aston Martin-like 0-
62mph in 11.6 seconds.
That said, around town,
flying about Chelsea and
Pimlico between the
Bluebird Cafe, the Conran
Shop and Daylesford
Organic, the Cygnet feels
very nippy. This is especially
the case in the automatic ver-
sion with CVT transmission. The
steering is light and the car is
remarkably entertaining to drive, so
easy is it to flow in and out of traffic.
FERRARI UK DEBUT
Ferraris new four-seater sports car, the FF, is making its UK public
debut at the Goodwood Festival of Speed, 1-3 July. The 660bhp,
V12-engined Grand Tourer is the first Ferrari to feature four-wheel
drive, has near-perfect weight distribution and an acceleration time
of 0-62mph in 3.7 secs.
PARK LANES MCLAREN PALACE
McLarens flagship London showroom has just opened at One Hyde
Park. McLaren claims the showroom will stock a spare of every
serviceable part for its new MP4-12C high-performance, carbon-
fibre-based sports car and provide an efficient pitstop service for
repairs. McLaren aims to hand-build 1,000 cars this year.
Aston Martins hot
little car will even
make traffic fun
CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010 CITYA.M. 22 SEPTEMBER 2010
Lifestyle | Motors
The new frontier of city driving
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhii
PRACTICALITY hhhii
VALUE FOR MONEY hhhii
THE FACTS:
ASTON MARTIN CYGNET
PRICE: 30,995
0-60MPH: 11.6secs
TOP SPEED: 106mph
CO2 G/KM: 120g/km
MPG COMBINED: 54.3mpg
WORDS BY
RYAN BORROFF
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WATERLOO ROAD
BBC1, 7.30PM
Chris discovers new pupil Scout is a
drug courier, but trying to help her
lands him in trouble with both Karen
and the police.
24 HOURS IN A&E
CHANNEL4, 9PM
Tension mounts after two men from
different areas are brought in with
stab wounds suffered in the same
fight.
PAWN STARS
CHANNEL5, 7.30PM
Corey takes a quiz after misidentifying
a Faberge crystal egg if he loses he
works the graveyard shift, but if he
wins he gets $2,500.
BBC1
SKY SPORTS 1
4.30pmLive UEFA Under-21s
European Championship 7.30pm
Live UEFA Under-21s European
Championship 10.30pmThe Sky
Sports Years 11.30pmTime of
Our Lives 12.30amUEFA
Under-21s European
Championship 2.30amFIFA
Futbol Mundial 3amFootballs
Greatest 3.30amFootball Asia
4am-6amUEFA Under-21s
European Championship
SKY SPORTS 2
5.30pmLive Twenty20 Cup
Cricket 9pmBoots n All 10pm
Bowls 11pmNFL 12am
Twenty20 Cup Cricket 2am
Inside the PGA Tour 2.30am
European Tour 3am-5am
PGA EuroPro Tour Golf
SKY SPORTS 3
3.55pmLive Test Cricket
11pmTotal Rugby
11.30pmWatersports World
12.30amFootballs Greatest
1amCage Fighter 1.30am
Poker 3.30am-4.30am
Watersports World
BRITISH EUROSPORT
7pmMotoGP 9pmLive
Under-17s World Cup Football
11pmUnder-17s World Cup
Football 12.35am-1am
Eurosport for the Planet
ESPN
7pmLive Russian Premier
League Football 8pmPremier
League Goals 8.30pmSerie A
9pmPremier League World
9.30pmDTM Review Show
10.30pmVW Scirocco Cup
11.30pmPremier League Top
50 Goals 12amSerie A
12.30amESPN Press Pass
1.30am30 for 30 5.15am
ESPN Kicks: Extra 5.30am-
6amESPN Press Pass
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmPsychic Sally:
On the Road 9pmNikita 10pm
Supernatural 11pmCriminal
Minds 12amCSI: Crime Scene
Investigation 1.50am
Supernatural 2.40amGhost
Whisperer 3.30amCharmed
4.20amNothing to Declare
5.10am-6amMaury
BBC THREE
7pmTop Gear 8pmGreat TV
Mistakes 9pmFILMNorbit
2007. 10.40pmFamily Guy
12.10amKids Behind Bars
1.10amAmerican Dad!
3.20amGreat TV Mistakes
4.15am-5.15amKids Behind
Bars
E4
7pmHollyoaks 7.30pmFriends
9pmFILMSchool of Rock
2003. 11.05pmAlan Carr
12.10amRude Tube: Viral Ads
1.10amMy Name Is Earl
2.05amGlee 2.50amAlan Carr
3.45amPrivileged 4.30am
Reaper 5.10am-6amSwitched
HISTORY
7pmHeir Hunters 8pmAx Men
10pmOnly in America 11pmOil
Riggers 12amAx Men 2am
Deep Wreck Mysteries 3amHeir
Hunters 4amHow the Earth
Was Made 5am-6amAx Men
DISCOVERY
8pmHow Its Made 9pm
Britains Toughest Cops 10pm
I Almost Got Away with It
11pmDisaster Eyewitness 12am
Bear Grylls: Born Survivor 1am
Britains Toughest Cops 2am
I Almost Got Away with It 3am
Deadliest Catch 3.50amFuture
Weapons 4.40amTreasure
Quest 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm
Untold Stories of the ER 10pm
Hospital Sydney 11pmThe Real
ER 12amUntold Stories of the
ER 1amHospital Sydney 2am
The Real ER 3amLittle People,
Big World 4amA Baby Story
5am-6amBringing Home Baby
SKY1
8pmEmergency with Angela
Griffin: The actress attends the
scene of a traffic collision. 9pm
Brit Cops: Zero Tolerance 10pm
An Idiot Abroad 11pmWall of
Fame 11.30pmCop Squad
12.30amThe Chicago Code
1.30amNCIS: Los Angeles
3.10amFringe 4amAirline
4.50amCrash Test Dummies:
Agame of car conkers.
5.15am-6amSell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmCHOICE Waterloo
Road: BBC News
8.30pmIn with the Flynns
9pmThe Apprentice
10pmBBC News 10.25pm
Regional News 10.35pmThe
National Lottery Wednesday Night
Draws 10.45pmNot Going Out
11.15pmFILMExtreme Measures:
1996; National Lottery Update
1.10amSign Zone: See Hear
1.40amCountry Tracks 2.35am
Saints and Scroungers 3.05am
Great British Railway Journeys
3.35am-6amBBC News
5.50pmWimbledon 2011: The
third days play continues at
the All England Club.
8pmToday at Wimbledon:
Reflections on the third days
play at the All England Club.
9pmAfghanistan: War without
End?: John Ware examines the
last decade of conflict.
10pmThe Apprentice:
Youre Fired!
10.30pmNewsnight: Weather
11.20pmThree Men Go to
Venice
12.20amThe Tudors
1.15amBBC News 3.35am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmPoms in Paradise
8pmLewis: A man is
found dead in the Bodleian
Library basement.
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Kids Are Alright
11.35pmBaby Hospital
12.30amThe Zone;
ITV News Headlines
2.35amFILM True Crime:
Crime thriller, starring Clint
Eastwood. 1999. 4.40am-
5.30amITV Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pm4thought.tv
8pmEmbarrassing Bodies:
Live from the Clinic
9pmCHOICE
24 Hours in A&E:
10pmDesperate Housewives
11.05pm8 Out of 10 Cats Uncut
11.50pmMusic on 4: Live from
Abbey Road 12.40amThe Album
Chart Show: Spotlight 12.55am
4Play: Foster the People 1.10am
4Music Favourites: Avril Lavigne
1.35amFILMMy First Mister:
2001. 3.30amConservations
Dirty Secrets: Dispatches
4.25amHill Street Blues
5.20am-6.05amCountdown
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmCHOICE Pawn
Stars: 5 News Update
8pmSubmarine School
9pmNCIS
10pmLaw & Order:
Criminal Intent
11pmLaw & Order: Special Victims
Unit: 11.55pmPoker: Aussie
Millions: 12.55amSuperCasino
4amMeals in Moments 4.10am
Michaelas Wild Challenge
4.35amMichaelas Wild Challenge
4.55amRough Guide to
Adventures 5.10amWildlife SOS
5.35am-6amHouse Doctor
1 2 3 4
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30
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Lose heat (4)
3 Bicycle seat (6)
5 Bustle (3)
6 Nautical term used
in hailing (4)
7 Foolish (6)
9 All (10)
14 Fixed
conventionalised or
stock image (10)
17 Fast gait of a
horse (6)
19 Go of, as with
milk (4)
20 ___ Maria, prayer to
the Virgin Mary (3)
21 Loveliness (6)
22 Tatters (4)
DOWN
1 Swiss cottage (6)
2 Stratum (5)
3 Call for help (inits) (3)
4 Mendacious (5)
8 Mr Geller, spoon-bender (3)
10 Young newt (3)
11 Be equal, draw (3)
12 Word indicating a
negative answer (3)
13 One of four playing-
card suits (6)
14 Frighten away (5)
15 Long and slippery sh (3)
16 Weapon that delivers a
temporarily paralysing
electric shock (5)
18 Hand over money (3)
R
I
C
A
P E
O
T
V

4
4

M C C O N S U L T
O N A I R H E
U R A R T I S A N
S E E R S V V
S S S O M E E
E A S T W R O S E
N R I N K L A
G I O R D E R
D E S P A I R H N
L L A G A V E
J A V E L I N T D
8 2 1 9 7 2 5
9 3 6 1 7 2 5 4 8
1 3 2 4 3 1
3 4 5 8 9 3 8
9 7 8 6 8 9 5 7
2 1 4 1
5 8 9 7 2 2 3 1
1 3 2 1 6 7 3
5 9 6 9 7 8
4 9 7 5 3 8 1 6 2
8 7 6 4 3 9 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
WHOLESALE
Lifestyle | TV&Games
A
NDREW STRAUSSS decision to
switch counties in order to find
some form ahead of the Indias
impending visit has been criti-
cised in some quarters, but I cant see
a problem with it.
Its unprecedented, innovative and
Somerset should be applauded for
being so accommodating. Its also
encouraging to see Strauss, now
retired from international one-day
cricket, accepting he needs time in
the middle, rather than putting his
feet up for a month.
Clearly theres a problem with the
scheduling if the captain of England
has to go to such lengths to find an
opportunity to prepare appropriately
for a major Test series, but there are
plenty of good reasons why the ECB
shoehorn the majority of domestic
one-day fixtures into this period of
the summer.
In any case, talk of Strausss demise
and a supposed weakness against left-
arm seamers is greatly over exaggerat-
ed he didnt look too shabby against
Mitchell Johnson last winter did he?
Sure, his scores dont look too
clever against what was the worst Sri
Lankan attack Ive seen for ages, but
he only had four innings and much
like Kevin Pietersen has, hell come
good again. Taunton, with its flat
track and small boundaries will pro-
vide the perfect setting for him to get
back in the runs.
Credit goes
to Strauss
for taking a
brave move
Sport
30
OLYMPIC chiefs sparked a furious row
last night by announcing that a deal
had been reached paving the way for
players from all four home nations to
represent Team GB in the London
2012 football tournament.
Scottish, Welsh and Irish football
associations swiftly responded by col-
lectively rubbishing the notion, with
one official saying he was astound-
ed at the British Olympic
Associations (BOA) statement.
They added that they would contin-
ue to oppose a unified team, say-
ing: We have stressed this in
communications to them
and are disappointed that
this has been ignored in the
media release.
It is the latest and most
high-profile spat in a long-
running row over
whether the likes
of Wales and
T o t t e n h a m
winger Gareth
Bale (right) will
play alongside
the best
E n g l i s h ,
Scottish and
N o r t h e r n
Irish foot-
ballers at next
s u m m e r s
Games.
The spat also
means Englands
Football Association
(FA) is still the only
body in agreement
with the BOA,
although that will
not stop both parties pressing ahead
with plans.
The BOA appeared to have brought
the remaining home nations on
board when they released a state-
ment entitled: Historic agreement
reached to enable Team GB to return
to the Olympic football pitch.
It explained the FA will effectively
pick the 18 players who will make up
the mens team, and will do so from
all four home nations. The FA will
also identify the manager, who is like-
ly to be appointed before next season.
But a response from the chief exec-
utives of the Scottish, Welsh and Irish
FAs hit back by insisting they did not
support nor formally endorse the
plans. They added: No discussions
took place with any of us, far less
historic agreement been reached.
George Peat, president of the
Scottish FA, said: I am absolute-
ly astounded that they have put
out this statement. I
know nothing of any
agreement and we
want nothing to do
with this tourna-
ment.
Englands fellow
home nations oppose
forming a unified
British team for the
first time since 1960
because they fear it
may harm their FAs
independent statuses
with world chiefs.
They do not have
power to block the likes
of Bale from competing,
but inclusion will be at the
players discretion, meaning
they could come under pres-
sure to withdraw.
War breaks
out over 2012
football team
BY FRANK DALLERES
OLYMPICS
THE FULHAM SEASON TICKET FROM 379 ADULTS

AND ONLY 125 JUNIORS (UNDER 16s)
Visit fulhamfc.com/seasontickets or call 0843 208 1234
CRICKET COMMENT
ANDY LLOYD
CHELSEA last night confirmed they are in negotiations with managerial target Andre
Villas-Boas and hope to reach a satisfactory conclusion shortly. The 33-year-old, who led
Porto to the Treble last season, yesterday resigned from the Portuguese club who later
revealed they had received the outstanding 13.3m compensation detailed in the termi-
nation clause of Villas-Boas contract. Picture: GETTY
GOODBYE PORTO, HELLO CHELSEA
31
TWO OF THE major threats to Andy
Murrays hopes of achieving
Wimbledon glory, Roger Federer and
Novak Djokovic, got their campaigns
off to winning starts yesterday.
Federer, who skipped his tradition-
al SW19 warm-up event in Halle due
to a knee injury, looked rusty in
what was his first match since
he was beaten in the final of the
French Open.
Despite not being at his best
the third seed required just 102
minutes to see off Centre Court
debutant Mikhail Kukushkin of
Khazakhstan 7-6 (7-2), 6-4, 6-2.
Its always nerve-wracking
playing your first match on
Centre Court because you
dont get the chance to
practice at the start of
the tournament,
said the six-times
champion (right).
But it was a matter of
playing solid and getting
through.
Federer plays Frances
Adrian Mannarino, who
battled past Irelands
Conor Niland in five sets,
in round two, while Djokovic, the
world No2, will play Kevin Anderson
of South Africa or Ukraines Illya
Marchenko next after he demolished
Frances Jeremy Chardy, dropping
just six games in a 6-4, 6-1, 6-1 win.
It represented a timely return to
winning ways for the Serb who sur-
rendered his 43 match unbeaten run
to Federer in Paris and hadnt played
since, having opted not to play at
Queens Club.
Andy Roddick, three-times a losing
finalist here, and Spaniard David
Ferrer, the seventh seed, were also
notable winners on day two.
In the womens draw defending
champion Serena Williams followed
her older sister Venus into the second
round, but she had to overcome a
scare in doing so.
The 29-year-old broke down in tears
after securing only her second vic-
tory 6-3, 3-6, 6-1 over
Aravane Rezai since
last years final fol-
lowing a near 12-
month lay-off.
It has been a disaster year
but I have been praying, I have
my family and I love tennis,
said Williams. This was the
most emotional Ive gotten
after a match.
Things were far more
straightforward for the top
seed Caroline Wozniacki
who dropped just three
games in defeating Arantxa
Parra Santonja, while French
Open champion Li Na and
fifth seed Maria Sharapova
progressed in straight sets.
FULHAM manager Martin Jol insists
he doesnt have any hard feelings
towards Tottenham as he prepares for
his second stint in English football.
Jol, who officially began work at
Craven Cottage on Monday, was
unceremoniously shown the door by
Spurs in October 2007 just months
after nearly taking them into the
Champions League.
But the Dutchman has since
enjoyed success at Hamburg and Ajax
and says he is on good terms with the
man who axed him, Tottenham chair-
man Daniel Levy.
I wont lie I didnt feel great at
that moment, Jol said yesterday.
Then later on you go to another club,
I was in Germany and Hamburg have
55,000 season ticket holders not
30,000 it was a big club.
Then after a few weeks you go on
and we played in Europe, we got to
the semi-finals [of the Europa League]
we had played in the quarter-final at
Spurs. So it was even better, it was
nice. There was no looking back or
hard feelings.
Jol will need to call on his Spurs
connections if, as has been suggested,
he is interested in making striker
Robbie Keane, who has fallen out of
favour in north London, one of his
first signings.
He plans to bring in four or five
players but will need to act fast as the
clubs first match of the season the
Europa League qualifier against NSI
Runavik of the Faroe Islands is in
just eight days time.
No problems for Federer but
its emotional for Williams
No grudge with Spurs, says Jol,
as Dutchman arrives at Fulham
BY FRANK DALLERES
FOOTBALL
SPORT | IN BRIEF
England drop Prior and Colly
CRICKET: Matt Prior and Paul
Collingwood have been axed from
Englands one-day squad ahead of the
upcoming series against Sri Lanka. There
were recalls for wicketkeeper Craig
Kieswetter and all-rounder Samit Patel.
McIlroy to take extended break
GOLF: US Open champion Rory McIlroy
said he is planning to take a break from
golf before playing at next months Open.
Ive got three weeks off and then the
British Open so I want to take it easy,
said the Northern Irishman.
Results
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email sport@cityam.com
OUTSIDE COURT | WEATHER, GOSSIP AND TODAYS HIGHLIGHTS
MURRAY UPDATE
Andy Murrays second round oppo-
nent, Germanys Tobias Kamke,
warmed up for todays clash with an
impressive 6-3, 7-6 (7-4), 5-7, 6-1 win
over Blaz Kavcic. The pair, who are due
to be the second match on Court One,
have never met in an ATP or grand
slam event before.
BRIT WATCH
Queens semi-finalist James Ward and
Dan Cox fell by the wayside, but there
were wins for Elena Baltacha and
Anne Keothavong, although the latters
victory was tempered by the fact she
beat compatriot Naomi Broad.
WHAT TO WATCH
Heather Watson, the great hope of
British womens tennis, finally gets her
campaign underway against Mathilde
Johansson on Court Three.
BY JAMES GOLDMAN
TENNIS
WEDNESDAY FORECAST
Heavy rain shower
HIGH
LOW
19
0
11
0
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