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FTSE 100 5,989.76 +44.05 DOW 12,582.77 +168.43 NASDAQ 2,816.03 +42.51 /$ 1.61 +0.01 / 1.11 unc /$ 1.45 unc
Jobs boom
in financial
sector: CBI
HIRING in financial services hit its
highest level since the credit crunch
in the three months to June, a survey
from the Confederation of British
Industry (CBI) will show today.
Similar growth is predicted for the
coming three months, the CBI said in
its latest financial services survey,
compiled with PwC.
Income from interest, investment
or trading grew at its quickest rate
since March 2007. Revenues from fees,
commission and premium income
also rose strongly, the survey says.
Job opportunities across all sectors
sprung back sharply in June, accord-
ing to a separate poll conducted by
Reed, also released today.
Reeds job index jumped by three
per cent in June compared to May,
with demand for workers in the insur-
ance sector reaching its highest level
since the records began.
Yet signs of a slowdown were still
evident in the CBIs report. While
financial services continued to grow
in the three months to June, expan-
sion was at a slower rate than in the
previous three quarters.
Business optimism remained at the
same rate it was at three months ago.
Sentiment in the industry spiked in
the first three months of the year.
Concerns about economic recov-
ery and demand have caused a dip in
banks confidence while, for the first
time in a year, business volumes are
dropping off, said Andrew Gray, UK
banking leader at PwC.
BY JULIAN HARRIS
FINANCE

THE average familys real weekly

income rose by just 1 in Labours
final term in office, a Westminster
think tank will reveal this morning.
The average households weekly
income measured 682 in 2004-05
and just 683 in 2009-10, in numbers
adjusted for inflation.
Although the figures for 2009-10
are the latest available, the situation
will have only worsened in the 13
months since the coalition took
power. Earlier this year, Bank of
England governor Sir Mervyn King
warned of the biggest income
squeeze on families since the 1920s.
Real disposable income plummet-
ed by 2.7 per cent in the year to the
end of March the sharpest drop
since 1977 official statistics showed
last week. And inflation currently
stands at 4.5 per cent on the con-
sumer price index far higher than
the banks two per cent target.
The collapse in income growth
coincided with falling popularity for
the Labour government and its
removal from office last year. The
Centre for Policy Studies (CPS), which
compiled the figures, will urge cur-
rent chancellor George Osborne not
to succumb to the same fate.
With Britons wallets squeezed by
rising prices and a sluggish economy,
Osborne must deliver faster growth if
he wants to avoid electoral defeat in
FAMILIES JUST 1
RICHER THAN 2004
BY JULIAN HARRIS
UK ECONOMY

www.cityam.com Issue 1,416 Monday 4 July 2011 FREE

GEEK SPEAK
HOW MOBILE
APPS ARE
TAKING OVER
FESTIVALS P20
DJOKOVIC DETHRONES
NADAL AT WIMBLEDON
SERBS RISE CONTINUES P22
BUSINESS WITH PERSONALITY
2015, the CPS will argue.
The CPS, co-founded by Margaret
Thatcher in 1974, will quote Ronald
Reagan in its plea to the chancellor,
ahead of the unveiling of a statue of
the ex-US president in Grosvenor
Square this morning. In 1980, the
American presidential debates were
transformed when Reagan asked the
audience: Are you better off now
than you were four years ago?
If the answer to Reagans question
is to be yes in 2015, then a robust
strategy for growth and the contain-
ment of inflation are both essential,
said CPS director Tim Knox.
In Labours two terms in office up
to 2005, real incomes rose 3.1 per
cent and 2.1 per cent a year respec-
tively leading to electoral success,
the CPS said. Yet income growth in
Labours third term was just 0.04 per
cent a year.
The CPS demand comes as some
Conservatives are pressing for the
government to combine its commit-
ment on deficit reduction with
strong supply-side reforms, echoing
similar statements from business
groups such as the Confederation of
British Industry and the Institute of
Directors.
Tim Montgomerie, head of the blog
Conservative Home and former aide
to Iain Duncan Smith, told City A.M.:
When Greece defaults, thats the
time for Osborne to announce meas-
ures that will reassure investors in
Britain: restructure the tax system,
release banks from onerous capital
requirements, and modernise strike
law. ALLISTER HEATH: P2
Certified Distribution
02/05/11 till 29/05/11 is 103,467
Chancellor
Osborne should
heed the advice
of the late US
president
Ronald Reagan,
a think tank
will argue today
Pictures:
REUTERS
ANALYSIS l Weekly income per household
DISPOSABLE INCOME
GROSS INCOME p
1997-98 1999-00 2001-02 2003-042005-06 2007-08 2009-10
750
650
550
450
350
250
200
News
2 CITYA.M. 4 JULY 2011
Price war sees
petrol tumble
PETROL prices fell by over two pence
per litre last week, according to data
seen by City A.M.
A combination of supermarket price
wars and a sharp fall in the global
price of oil saw the average price of
unleaded drop from over 136p per litre
to 133.82p.
Diesel declined from almost 140p
per litre to 137.90p, the information
company Experian Catalist revealed.
J Sainsbury has turned up the heat
in its battle against other petrol
providers by offering a 10p per litre dis-
count to its customers.
Rivals Asda and Tesco had slashed
three pence per litre off the cost of
petrol, after the International Energy
Agency (IEA) said it would release 60m
barrels of emergency reserves through-
out most of this month.
The announcement saw the price of
Brent crude plummet by close to $7
(4.36) per barrel in the days trading
prompting some retailers to cut their
own prices at the pumps.
Energy secretary Chris Huhne has
called for supermarkets to also offer
gas and electricity provision to homes.
We welcome the reduction in
petrol prices, a spokesperson for the
Road Users Association said, but the
key issue is that most of the cost of fuel
is tax. Tax accounts for over 60 per
cent of the price of unleaded, it said.
BY JULIAN HARRIS
ENERGY

Optimistic? Pessimistic? You choose

BRITAIN is in a strange place. The econ-
omy is simultaneously making
progress while also disappointing. Yet
the fact that the recovery is proving to
be such a mixed bag is hardly a sur-
prise given the massive size of the bub-
ble that is still deflating today. At the
height of the craziness in 2006-07,
domestic demand was 5-6 per cent
higher than what the economy could
comfortably cope with: GDP itself was
2-3 per cent too high, while the trade
deficit was 3-4 per cent of GDP. No
wonder recovering from all of that
madness is proving so painful. So for
the sake of balance, here are three bad
developments about the UK economy
and three pieces of good news.
PESSIMISTIC FACT 1
Average take home pay has been
falling after adjusting for inflation
since the coalition came to power. Real
disposable incomes fell 2.7 per cent
year on year in the first quarter, the
biggest drop since 1977; no wonder
consumer spending fell 0.5 per cent.
But the rot started under Labour: real
disposable income rose just 4 a week
between 2004/05 and 2009/10, the
Centre for Policy Studies calculates.
PESSIMISTIC FACT 2
A sound economy invests as well as
consumes; yet the UK has largely for-
gotten how to do the former. Private
and public consumption as a share of
GDP hit a record 86.2 per cent in 2010.
Consumption was 8 per cent higher as
a share of GDP in the UK than the
European Union average; only Greece
was worse, according to Citigroup.
PESSIMISTIC FACT 3
The economy is going through anoth-
er soft patch. The Royal Wedding did-
nt help: the services sector was down
1.2 per cent in April as a result. The
manufacturing recovery is slowing:
the purchasing managers index fell to
51.3 in June, compared to 52.0 in May.
Supply-chain disruptions caused by
the Japanese earthquake have hit car
production, but there are also broader,
more global factors at play which sug-
gest a slowdown. Growth in the second
quarter could be feeble.
OPTIMISTIC FACT 1
Rebalancing is proceeding apace.
Business investment has jumped 8.2
per cent since the recession stopped.
Exports of goods are up 21 per cent,
thanks in part to sterlings 25 per cent
devaluation. Deleveraging is also going
well. Non-financial companies debt
fell to 108 per cent of GDP in the first
quarter of this year, down from 123 per
cent in the third quarter of 2009.
Household debt has dropped to 103
per cent from 111 per cent in the sec-
ond quarter of 2009. Both groups com-
bined debt is down 18 percentage
points of GDP over the last year, the
biggest reduction of the last 25 years.
OPTIMISTIC FACT 2
Jobs are becoming easier to find, even
if there is still a long way to go. Public
sector employment was cut by 140,000
in the year to the first quarter but
this was more than compensated for
by an increase in private sector employ-
ment of 520,000.
OPTIMISTIC FACT 3
The strong jobs growth seen over the
past year suggests that the economy
has grown faster than the official stats
suggest. In particular, everybody from
the Bank of England to the property
industry knows the official construc-
tion figures are all over the place.
Strangely, the Office for National
Statistics has yet to revise its figures.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GERMAN utility giant RWE is said to
be considering the sale of its UK busi-
ness Npower for 5bn as it struggles
to pay down debts.
The owner of Npower, one of
Britains biggest electricity suppliers,
has hired Goldman Sachs to review
the companys prospects, it is under-
stood. Iberdrola, the Spanish owner
of Scottish Power, is seen as a likely
buyer.
A sale would allow RWE to cut its
own large debts and fulfil demands
to invest in green power stations.
A spokesman for the company
refused to comment yesterday but
said the UK was still a core market
for RWE.
RWE, Germanys second largest
energy company, bought Npower
then known as Innogy for 3.1bn in
2002
Npower supplies energy to 6.8m
homes in Britain and generates eight
per cent of the UKs electricity.
BY KASMIRA JEFFORD
ENERGY

RWE eyes sale of Npower

Npower, headed by chief executive Volcker Beckers, could be on the block
NEWS | IN BRIEF
Hands looks for new investors
Guy Hands' private equity firm Terra
Firma is drumming up interest in its next
fund, which aims to raise up to 2.5bn.
The fund, Terra Firma Capital Partners IV,
will be around half the size of its previous
one and will not be formally marketed
until the start of 2012. Terra Firma will
focus on the Middle East and Asia to help
raise parts of the fund and future invest-
ments are likely to be between 225m
and 450m.
EU to cap roaming charges
The EU is set to introduce a slew of price
caps on mobile phone roaming charges
this week. In plans to be unveiled on
Wednesday, the European Commission
will set out a programme to bring prices
for domestic and international calls, data
downloads and text messages to roughly
the same levels as one another by 2015.
Telecoms operators have lobbied hard
against the changes, which will see the
price cap on texts brought down to 10
cents from 11 cents and prices for voice
calls brought into line with their domestic
equivalent. The roaming market is already
highly regulated, but the price caps are a
severe blow for European telcos.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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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
JLR IN 50 PER CENT BOOST TO
SPENDING
Jaguar Land Rover is to boost its
spending on products by 50 per cent
from about 1bn to 1.5bn as the UKs
largest premium carmaker prepares
to launch the most important vehicle
since Tata Motors bought the group
from Ford Motor three years ago.
CHI-X TAKEOVER PLAN IN JEOPARDY
A plan to create the largest share trad-
ing platform in Europe is in jeopardy
as several shareholders in Chi-X
Europe are now exploring a sale of
their platform to new buyers, follow-
ing the referral of its takeover by
BATS Global Markets to UK antitrust
authorities, according to sources.
COLLATERAL DEMAND RISES FOR
INTERBANK LENDING
Interbank lending using European
government bonds as collateral has
reached record levels, in spite of wor-
ries about Greek debt default and the
future of the Eurozone. By contrast,
lending between banks without the
backing of collateral has ground to a
near standstill for any loans of more
than a weeks duration, as fears of
bank insolvency rise due to continu-
ing uncertainty over Greece.
BARSKY CALLS FOR CHANGE
AT TNK-BP
TNK-BPs chief executive in waiting
has warned that BPs Russian oil ven-
ture must install independent man-
agement or risk undermining its
ambitious international growth
plans. Maxim Barsky, who had been
due to take over from Mikhail
Fridman, one of the Russian share-
holders, as chief executive in January,
said the companys wider focus
meant that TNK-BP which is equally
owned by BP and Alfa-Access-Renova
(AAR), a group of Russian billion-
aires needed a different type of cor-
porate structure.
DOVER EYES ASIA AS IT FIGHTS FOR
PRIVATISATION
The Port of Dover has revealed ambi-
tious plans to expand into the Asian
port market if it can persuade the
government to privatise it. The Dover
executive also believes that, if
released from public ownership, it
can expand into regional airports and
rail. The future of Dover is back on
the agenda at the Department for
Transport this week after the suspen-
sion by Philip Hammond, the
Secretary of State, of any plans for pri-
vatisation of the so-called trust ports.
UNILEVER PROMISES A REAL JOB
FROM DAY ONE TO ENTICE
GRADUATES
Unilever hopes that the promise of a
real job from the outset will prove
more attractive than an investment
banks pay package in luring top MBA
graduates.
ZYNGA WARNS OF THE DANGERS
OF GETTING RICH
Zynga has taken the highly unusual
step of warning that plans for a multi-
billion dollar flotation of the online
gaming company could sour relations
among its employees as some sudden-
ly find themselves much richer than
others. The disclosure came in the
Risk Factors section of the prospectus
for a potential $20bn (12bn) stock
market listing that it filed with regu-
lators at the end of last week.
TAX-FREE ISAS TO FUND SOCIAL
PROJECTS
Tax-free Isas will be offered to millions
of Britons in return for funding a
200m fund to tackle the root causes
of social problems among the poorest
in society. The programme will see
taxpayers, rather than the state, fund
social projects. Investors will get a
200 increase to their tax-free savings.
NESTL HOLDS TALKS TO BUY BIG
CHINESE CANDY MAKER
Nestl is in talks to buy Chinese
candy maker Hsu Fu Chi
International, according to a person
familiar with the matter, in what
would be one of the biggest foreign
takeovers of a Chinese company. The
talks between Nestl and Hsu Fu are
at a delicate stage and still have a
number of hurdles to cross, the per-
son said.
SPAIN PICKS BANKS TO COORDINATE
LOTERIAS IPO
Spains Finance Ministry has picked
four investment banks to coordinate
the blockbuster privatisation of
Spains lottery company, Sociedad
Estatal de Loteras y Apuestas del
Estado SA, people familiar with the
situation said. The banks are JP
Morgan Chase, Goldman Sachs Group
UBS and Credit Suisse Group.
WHAT THE OTHER PAPERS SAY THIS MORNING
FESTIVAL
4 - 24 JULY
WWW.LONDON.GOV.UK/SHUBBAK

@SHUBBAKFESTIVAL
IMAGE: NOUS WITH THE RIBA. BURJ KHALIFA. PHOTO: IWAN BAAN
MORTGAGE lender Paragon has
emerged as a surprise contender to
buy Northern Rock.
It is understood Paragon has
requested documentation relating to
the sale with a view to making an
offer.
The sale is expected to return
around 1bn of the 1.4bn invested in
the failed institution by the taxpayer.
Paragon joins Coventry building
society, Virgin Money, Co-op Financial
Services and NBNK as bidders for the
assets.
The lender narrowly avoided a sim-
ilar fate to Northern Rock after going
cap in hand to investors after the
financial crisis hit.
It was forced to stop lending
between 2008 and 2010 but has since
rebounded, with strong demand for
rented accommodation helping push
profits up.
Pre-tax profit for the six months
ending in March rose 34.8 per cent to
39.5m, and the company also raised
its interim dividend by 12.5 per cent
to 1.35p.
It says it expects further growth in
lending for the rest of the year.
George Osborne confirmed the sale
would go ahead at his Mansion House
speech last month.
Both the Treasury and Paragon
declined to comment on the sale.
The Northern Rock sale is expected
to take place after the sale of 632
Lloyds branches.
Paragon eyes
Northern Rock
BY STEVE DINNEEN
BANKING

GREECE has been warned that it faces

an era of massively limited sover-
eignty in return for the bailout cash
that will ward off a disorderly bank-
ruptcy this summer.
Eurogroup chairman Jean-Claude
Juncker said that in return for the EU
signing off on Greeces 12bn (10.8bn)
in aid, which was rubber-stamped on
Saturday night, Athens should prepare
to have some fiscal decisions made by
foreigners.
One cannot be allowed to insult
the Greeks. But one has to help them.
They have said they are ready to accept
expertise from the Eurozone, said
Juncker. The sovereignty of Greece
will be massively limited.
In the face of riots in Athens, the
Greek parliament voted last week to
implement 28bn in cuts and to set up
an agency to offload 50bn in state
assets.
EU: Greece must accept limits
on sovereignty for 12bn in aid
EUROZONE

NASDAQ, the US bourse, is understood

to be considering a bid for the London
Stock Exchange.
The LSE became a potential target
for Nasdaq chief Bob Greifeld after it
failed to tie-up an agreed merger with
Toronto bourse operator TMX Group.
Greifeld is understood to have asked
his senior executives to look at putting
together an approach.
A source told City A.M. that he is
under pressure to seek merger oppor-
tunities because Nasdaq risks being
dwarfed by bigger rival NYSE following
its tie-up with Deutsche Boerse.
The New York-based exchange is said
to have a price of about 12.75 per
share in mind for the LSE. Shares in
the London bourse closed at 10.33 per
unit on Friday.
Meanwhile, the stock exchange has
played down suggestions that two of
its senior directors are under pressure
from Artemis, a key shareholder, to
quit following the collapsed merger.
Investors are said to have called for
Robert Webb and Dame Janet Cohen,
who have been on the board for ten
years, to stand down.
An LSE spokesperson said: In refer-
ence to Artemis, we have been
informed that they have been and
remain in support of the LSE board.
Nasdaq considers approach
for London Stock Exchange
BY RICHARD PARTINGTON
FINANCIAL MARKETS

News
3 CITYA.M. 4 JULY 2011
FIRST FEMALE LEADER FOR THAILAND
THAILAND voted in its first female leader last night. Yingluck Shinawatra, the sister of
former Thai Prime Minister and Manchester City owner Thaksin Shinawatra who was
toppled in a bloodless coup in 2006 was on course to win an outright majority of 262.
Outgoing Prime Minister Abhisit Vejjajiva conceded defeat. Picture: REUTERS
Analysts expect the sale to net between 650m
and 1bn. High capital requirements are expected
to lower the value.
Paragon has bounced back in the wake of the
recession, when it was forced to make a cash call.
It resumed lending last year.
FAST FACTS | NORTHERN ROCK SALE
SEVERAL top investors in private equi-
ty firm 3i are planning to vote against
re-electing the companys chief execu-
tive Michael Queen.
It is understood 3i shareholders
including Schroders, BlackRock and
Scottish Widows Investment
Partnership are planning to abstain or
vote against Queens re-election, after
they said he had rejected demands to
return cash to investors.
A 3i spokesman yesterday said the
board had not made any decision on
returning cash to investors, adding
we are always interested in the views
of our shareholders.
FOUR Seasons is to take over 45 of
the homes currently being run by
the UKs biggest care home provider,
Southern Cross, with plans to keep
them open after a revamp.
Four Seasons, which runs a care
homes business alongside its hotel
chain, currently leases the 45
homes to the struggling Southern
Cross, which is in negotiations with
its landlords and other creditors to
avoid being forced into administra-
tion.
As both a rival care provider and
landlord, Four Seasons is in a strong
position to take over the homes and
add them to its own business.
The company has now inspected
all of the 45 homes in question and
believes that it can integrate them
successfully.
It is not yet clear what form the
deal would take, but any agreement
to keep the homes open would be
welcomed by the government,
which has been under pressure to
intervene to protect Southern
Cross 31,000 vulnerable residents
from the turmoil caused by the
companys problems.
Last week, Southern Cross was
granted a month-long extension in
its bank lending facilities, giving
the company breathing space to
continue a four-month restructur-
ing process with its other creditors,
many of whom are the landlords of
the homes it runs.
Regarding the 45 homes that it
leases to Southern Cross, Four
Seasons chief executive Pete
Calveley told the Financial Times:
Weve been around all 45 and have
no intention of closing any of
them.
He also blamed many of Southern
Cross problems on quality of
homes and quality assurance.
Four Seasons
eyes Southern
Cross homes
Price correct as at 27 June 2011. Available to book now while stocks last. Offer valid on 750,000 selected seats across our
European network available one way for 35.99 or less. For travel from 15 July to 30 September 2011 inclusive. Variable
charges for hold baggage apply and some payment methods attract a handling fee. See website for details.
Summer Lovin
Prices
For travel between 15 July
and 30 September 2011
THE RECOVERY of Londons alterna-
tive investment market (AIM) has
been knocked off course for the sec-
ond quarter in a row as the number
of companies delisting jumped 50 per
cent, research by accountancy firm
UHY Hacker Young finds.
Forty-two companies left AIM in
the second quarter of this year, up
from 28 in the first quarter the
largest quarterly increase since 2009.
The average amount of money
raised from IPOs has also fallen to
about 3.6m in the first part of this
year, down 70 per cent on the same
period in 2010.
AIM recovery
hits the buffers
Investors to vote
against 3i chief
BY JULIET SAMUEL
SERVICES

PRIVATE EQUITY

FINANCIAL MARKETS

HERMES, the investment house, has

held discussions with the government
over the way banks are paid for man-
aging stock market floats.
The investor wants a portion of the
fees paid to banks to be withheld for
several years and released only if the
flotation is deemed a success.
The meetings with the department
for business are the latest attempt by a
key City player to revitalise Londons
market for initial public offers (IPOs).
Last month, a special investigation
by City A.M. revealed that key players
in the IPO market were effectively at
war, with boutique advisers STJ accus-
ing book-runners of talking down the
price of companies.
Unrest in the City was first exposed
in a scathing letter sent by investment
giant BlackRock about the state of the
London IPO market.
Government holds talks over
revitalising flat IPO market
CAPITAL MARKETS

Four Seasons, led by chief executive Pete Calveley, will take over 45 Southern Cross homes
News
4 CITYA.M. 4 JULY 2011
ANALYSIS l Southern Cross
p
29Jun 30Jun 28Jun 1 Jul
7.80
7.40
7.00
7.00
1 Jul
CITY AT WAR
News
6 CITYA.M. 4 JULY 2011
THE government should have
taken more account of the cost of
going to war in Libya and must
now review its plans to cut
defence spending, according to
the City A.M./PoliticsHome Voice of
the City Panel.
Although a majority of panel-
lists (63 per cent) thought the gov-
ernment was right to go to war in
Libya, they had serious concerns
about financial planning and the
effect of swingeing cuts to the
defence budget.
Seventy per cent of the panel
said the government should have
taken more account of the cost of
the war, which is said to have
already cost over 200m. Initially
the government had said the war
would set the exchequer back
somewhere in the region of tens
of millions of pounds.
A similar number of panellists
(68 per cent) said the government
now needed to review its planned
cuts to the defence budget in light
of the conflict.
Overall, the UK defence budget
will be cut by eight per cent in real
terms by the end of the parlia-
ment in 2015 and a total of 17,000
jobs will be cut across the three
armed forces.
Although the war is being fund-
ed from Treasury reserves not
by the Ministry of Defence it has
been suggested that the cuts have
made certain operations more
expensive than they otherwise
would have been.
One panellist said: Ring-fenc-
ing the budget of the NHS and for-
eign aid whilst cutting
defence budgets is where
this government has got
it completely wrong.
Another added: The
problem isnt that
defence spending is
being cut this is
unavoidable but
that the time was-
nt taken to exam-
ine what the
g o v e r n m e n t
requires from the
armed forces and
how they might
be organised to
reflect this.
Me a n wh i l e ,
panellists were split
on whether the Arab Spring
would be good for the world econ-
omy: 40 per cent said it would
have a positive effect; 27 per cent
said it would have no
effect; and 27 per cent
said it would have a
negative effect.
City A.M. and
PoliticsHome inter-
viewed 434 members
of the Voice of the City
panel by email last
week. It has been spe-
cially recruited to rep-
resent a cross section
of Londons financial
and business commu-
nity.
Readers can apply
to join at
cityam.com/panel
PoliticsHome.com PoliticsHome.com
Should the government have taken more
account of the cost of the war in Libya?
In light of the Libya conflict, do you believe the
government needs to review its planned cuts
to the defence budget?
Probably
Definitely
Probably not
Definitely not
Dont know
Dont know
45%
25%
22%
7%
1% 1%
%
Probably
Definitely
Probably not
Definitely not 34%
34%
18%
13%
1%
%
Will the Arab spring be positive for the world
economy?
No Effect
Mainly positive
Mainly negative
Totally negative
Dont know
Totally positive
36%
27%
25%
2%
6%
4%
%
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
City: government should review cuts to
defence budget in light of Libya conflict
BY DAVID CROW
POLITICS

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NEARLY three quarters of occupation-

al pension trustees are looking to cut
back their allocation to equities,
according to a comprehensive survey
released today.
And companies are hoping to
reduce deficits in their pension funds,
with 22 per cent of trustees expecting
to receive company assets in lieu of
cash contributions, the study by
Pension Corporation reveals.
Flexibility in how to pay off deficits
should be good news for companies as
they seek to retain liquid assets in a
difficult economic environment, said
David Collinson of Pension
Corporation. Trustees are looking to
seriously tackle the deficits in their
pension funds and aim to use every
tool available to them, including com-
pany owned assets.
Over half (55 per cent) of pension
fund trustees may increase sponsor
contributions more than 10 per cent
after the next valuation. Eleven per
cent say they could raise contributions
by 20 per cent or more.
Close to half (44 per cent) of those
surveyed feel that the governments
move to apply inflation uplifts to the
consumer price index (which is usual-
ly below the retail price index) is
unfair on pensioners.
Pensions trustees set
to cut back on equities
Trustees for pensioners are cutting their allocation to equities Picture: REX
BY JULIAN HARRIS
PENSIONS

News
7 CITYA.M. 4 JULY 2011
REDUNDANCY payments totalled
4.4bn over the last fiscal year, the
details of a freedom of information
request reveal today.
The figure is only slightly down (by
two per cent) on the previous year, as
government sector cuts and a fear of
employment tribunals continue to
push up the level of payments.
In the last three years redundancy
payments are calculated to have cost
UK employers a total of 13.4bn,
according to City law firm Wedlake
Bell, which unveiled the figures.
Average redundancy payments
reached 9,362 per person in 2010-11.
Redundancy bill hits 4.4bn
EMPLOYMENT

THE Mayor of London Boris

Johnson has launched a 600m
bond to finance the construction
of Crossrail.
Issuing the bond will
help the Greater London
Authority (GLA) fund its
4.1bn investment in the
14.8bn project to build
the new rail link,
which will connect
east and west parts of
the capital.
London will be the
first local authority to
raise finance using
the capital markets in
17 years.
Tapping public debt
markets will save the GLA some 65m
in borrowing costs and equates to a
years revenue from the Business
Rate Supplement, a levy on busi-
ness owners to fund the project.
The bond, put together by
Lloyds Bank Corporate
Markets, will allow for
capital to be raised
0.17 per cent cheaper
than the current
option.
This is a great
example of the
public and pri-
vate sectors com-
ing together and
delivering an
innovative solu-
tion to bear
down on borrow-
ing costs, the Mayor said.
Mayor backs
600m bond
for Crossrail
20-27 November
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BY KASMIRA JEFFORD
CAPITAL MARKETS

News
8 CITYA.M. 4 JULY 2011
Protectionism rears its ugly head again
WHO would you buy 3.4bn worth of
new trains from. Germany, a country
synonymous with precision engineer-
ing and home to some of the worlds
most prestigious car marques, like
BMW, Porsche and Mercedes Benz? Or
Britain, home of the Mini-Metro and
Austin Allegro?
The answer seems obvious, yet the
Department for Transport is under
fire for awarding the contract to build
a new fleet of Thameslink trains to
Siemens. The German firm came up
with the cheapest bid, and the one
that met most of the specifications,
meaning rival Canadian bidder
Bombardier lost out.
As a result of losing the contract,
Bombardier looks set to shut Britains
last remaining train factory, putting
at risk 6,000 jobs and sounding anoth-
er death knell for UK manufacturing.
Predictably, an opportunistic
Labour Party (which designed the ten-
der process while in government) is
calling for a review. Vince Cable, the
business secretary, and Philip
Hammond, the transport secretary
whose own department selected
Siemens, have also written to the
Prime Minister with their concerns.
This kind of protectionism often
rears its head when recession bites,
and was in evidence at the weekend
when Iain Duncan Smith, the welfare
secretary, called on UK employers to
give our young people a chance
rather than employing immigrants.
Both the anger over the train con-
tract and the argument being made
by Duncan Smith miss the real point.
It is indeed depressing that the UK
cant rival the likes of Germany and
Japan when it comes to high-tech
manufacturing, nor Poland when it
comes to productive lower-skilled
workers. That doesnt mean we
should erect barriers and accept sec-
ond-best, however. Instead, we must
up our own game.
BOTTOMLINE
Analysis by David Crow
RAIL RAGE
THE LABOUR Party has urged the government to review its decision to award a 3bn
contract to Siemens of Germany to build new Thameslink trains. In a letter sent to David
Cameron yesterday, shadow business secretary John Denham said the decision had dealt
a body blow to the UK rail manufacturing sector and will put 6,000 jobs at a
Bombardier factory (pictured) and 20,000 jobs in the supply chain at risk.
Andrew Gczy, chief executive of
wholesale markets and co-head of cor-
porate markets, led the team that
designed the bond for the GLA.
Gczy joined Lloyds Banking Group
in 2009 after 24 years senior corpo-
rate and investment banking experi-
ence. He began his career in public
accounting with Price Waterhouse in
1986, before moving to Paris with
KPMG Peat Marwick.
Gczy started his banking career in
capital markets with Citibank in Paris
where his main focus was on cross-
border transactions involving Europe
and the US and was appointed global
head of structured corporate finance
in 2003.
Glen Manning, senior director, and
James Garvey, managing director at
Lloyds TSB, were also involved in the
GLA Crossrail deal.
Gczy said said the framework cre-
ated for the GLA could be adopted by
other local authorities across the
country looking to raise capital.
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The Capitalist
CITYA.M. 4 JULY 2011
GLENCORES
GLASENBERG
SHOWS HIS
SOLIDARITY
GLENCORE boss Ivan Glasenberg is notori-
ously elusive but one event that persuad-
ed the commodities billionaire to make a
rare public appearance was a high-level
mining industry dinner at Lords Cricket
Ground in St Johns Wood.
Glasenberg was no doubt drawn to the
fifth London event of The Melbourne
Mining Club last week by the prospect of
hearing Anglo Americans chief executive
Cynthia Carroll challenge conventional
wisdom in the global minerals industry.
For governments, there is the tempta-
tion to court popularity by treating min-
ing as at best a necessary evil and at worst
just plain evil, said the head of the
emerging markets mining business.
There is the temptation to caricature
mining companies as rapacious and irre-
sponsible profiteers who deserve at best
to be subject to windfall taxes and at
worst to have their assets seized.
The reality, continued Carroll to guests
including ex-BHP Billiton chief executive
Chip Goodyear; Philip Needham, finance
director of the London Metal Exchange;
and Peter Bacchus, head of European
investment banking at Jefferies; is that
modern human life is impossible with-
Ivan Glasenberg made a rare public outing to support The Melbourne Mining Club Picture: REUTERS
LUCS BRASSERIE in
Leadenhall Market was the
venue for six Square Mile resi-
dents who set the tone for a
bibulous summer lunch by start-
ing with aperitifs of vodka, gin
and the champagne-style lager
Kasteel Cru. It seems the party
had a lot to celebrate, as two
bottles of champagne were
added to the tab to accompany
the starters of foie gras,
asparagus, remoulade, camem-
bert and rosti. Then Corton
Charlemagne white wine and
Chateau Talbot red accompa-
nied the Chateaubriand steaks,
shared between the party as
their main course. From there,
Bonnezeuax sweet wine,
Woodhouse fortified wine and
brandies all round came out
over the French puddings to
set the group up for a no
doubt highly productive
afternoon back in the office.
BILL OF THE WEEK
out mining. Although she conceded
that: Not all miners have acted responsi-
bly in the past and, if we are honest,
there are still elements of our industry
that do not act responsibly today.
OVER-ACHIEVERS
THERE was no room for failure at the
National Achievers Congress, where lead-
ing motivational speakers including
investment adviser Robert Allen and Lord
Alan Sugar told a sell-out audience how to
become as wealthy as they are.
Greg Secker, the CEO of Knowledge to
Action and City A.M.s flying trader (The
Capitalist 27 June), explained how private
investors can get rich quick by trading on
the currency markets, before peak per-
formance coach Anthony Robbins
explained how rich people make up their
mind quickly and change it slowly, while
poor and unsuccessful types make up
their mind slowly and change it quickly.
However, a harder strategy is rebooting
the emotional attitudes that sabotage
your chances of making you too a million-
aire.
Your money blueprint, ingrained in
your subconscious mind since child-
hood, is the single most important fac-
tor in determining your level of wealth,
explained T Harv Eker, the chief execu-
tive of Peak Potentials Training who
went from from zero to a million by
resetting his financial mindset.
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
WH Smith gives its third quarter
update later this week, with ana-
lysts tipping the company for a
robust performance, despite the
tough trading environment.
The company is pinning its
hopes on international expansion
while cutting costs to shore up
profit. In contrast with companies
like beleaguered HMV, WH Smith
has steered relatively safely
through choppy economic waters.
Chief executive Kate Swann
could earn 8m in the next three
years if she meets targets set by the
board.
Keith Bowman, equities analyst
at Hargreaves Lansdown said
ahead of Thursdays figures for the
third quarter: The groups mid-
April half year results saw the com-
pany reporting ongoing progress.
Whilst sales remained on the
back foot, the profit margin con-
tinued to be expanded, aided by
changes in the product mix. Strong
cash flow continued to be seen,
with the company announcing an
18 per cent increase in the interim
dividend payment.
After opening 19 international
stores, WH Smith planned to open
a further 21 sites abroad.
WH Smith pins its
hopes on travellers
BY JOHN DUNNE
RETAIL

News
12 CITYA.M. 4 JULY 2011
NEWS | IN BRIEF
Retailers hail Independents Day
Independent high street stores need a
programme of support to survive, the
British Retail Consortium (BRC) will
argue today, calling for cuts in expensive
employment regulation and cheaper
parking in town centres. Today has been
dubbed Independents Day in a bid to
promote small and medium sized stores,
with the BRC also asking for reduced
property costs. Government and local
authorities need to work with business-
es to create safe, attractive town cen-
tres with good transport links and
affordable parking, the BRC said in a
statement.
Prada raises more in HK listing
Bookrunners for Pradas Hong Kong list-
ing have exercised an over-allotment
option to bring more shares to the mar-
ket and raise an extra HK$2.5bn
(200m). The over-allotment brings
shareholder Prada Holding BVs owner-
ship to 80 per cent from 82.5 per cent.
MORE NEWS
ONLINE AT
@
@
www.cityam.com
ANALYSIS l WHSmith
p
29Jun 30Jun 28Jun 27Jun 1 Jul
495
485
475
493.00
1 Jul
BRITISH heritage fashion brand Aquascutum is planning to tap the overseas luxury market that has treated rivals Burberry
and Mulberry so well in recent years by launching its first stand-alone shops outside of the UK within the next 12 months. The
brand, best known for the classic trench coats worn by British soldiers during both of the World Wars, was brought back
under UK ownership from its Japanese owners in 2009 by Jaeger boss Harold Tillman. Picture: REX
AQUASCUTUM PLANS OVERSEAS PUSH WITH STANDALONE STORES
A NEW poll suggests former IMF boss
Dominique Strauss-Kahn could stage a
remarkable political come-back
should the rapidly unravelling sex
case against him finally collapse.
As the credibility of the maid at the
centre of the scandal comes under
increasing doubt, a poll shows 60 per
cent of left-leaning French voters
want the man known as DSK to make
a return to frontline politics. This slips
to 49 per cent among the general pub-
lic.
Just over half of French leftists want
to see the man previously seen as a
racing certainty to beat Sarkozy in the
2012 presidential race back in the
frame for the top job, saying the
Socialist party should delay announc-
ing an official candidate.
However, analysts say the chances
of him running for the Presidency are
very unlikely, especially with the addi-
tional allegations levelled against
him, including a French journalist
who says she was sexually assaulted
by Strauss-Kahn a decade ago.
His supporters say he should be
able to run while he has not been con-
victed of any crime.
Socialist contenders must declare
their candidacy by 13 July, although
there have been calls to extend the
deadline so Strauss-Kahn could take
part. The earliest he could be cleared
is 18 July.
The high-profile sex case has been
rocked by a string of revelations about
the accuser, which last week led a
judge to released Strauss-Kahn from
house arrest and lift strict bail condi-
tions.
The 32-year-old woman is under-
stood to have been recorded making a
call to her suspected drug-dealer
boyfriend in a US prison, where she
discussed the possibility of making a
financial gain from the incident.
Prosecutors say the woman also lied
about being gang-raped in Guinea as
part of an application for US asylum
and changed details of her story about
what she did after the incident in
Straus-Kahns luxury hotel suite.
Further allegations include lying to
officials about possessing a number of
mobile phones and bank accounts
showing the transfer of tens of thou-
sands of pounds, despite claims the
hotel is her only source of income.
Strauss-Kahns next court appear-
ance in New York will be for an 18 July
hearing.
INCOMING UBS chairman Axel Weber
has said that pressing ahead with
changes to the Swiss banks manage-
ment will be one of the most impor-
tant tasks he faces when he takes the
helm at the bank in two years time.
UBS, Europes largest wealth manag-
er by assets, named Weber, former
Bundesbank head, as its next chair-
man on Friday. The surprise move robs
Deutsche Bank of one candidate to
replace chief exec Josef Ackermann.
It will be one of my most important
tasks to contribute to preparing the
bank for the future and pushing
ahead with the generation change,
Weber told a German magazine.
Weber said in the interview he took
the job because UBS made him an
excellent offer. There were never any
other formal contract negotiations or
offers, he said. Weber, who will be the
first non-Swiss to chair the bank, will
get a basic salary of SwFr1.5m (1.3m)
as vice-chairman, as well as 150,000
UBS shares, which he wont be able to
sell for four years.
Weber says generation change at UBS
will be a key task when he takes charge
US MONEY transfer firm Western
Union is in advanced talks to buy a
division of British currency exchange
Travelex.
Western Union, the worlds largest
payment transfer company, is close to
buying Travelexs business payments
unit for $1bn (622m).
Owned by private equity house
Apax Partners, Travelex wants to use
the proceeds from the sale to pay
down debt and to develop its con-
sumer currency exchange business.
The deal to acquire its global busi-
ness payments unit may be
announced as early as this week.
Western Union wants to buy
Travelexs business payments unit,
described by the company as the
worlds largest non-bank provider of
foreign exchange and risk solutions,
in order to grow its revenue from cor-
porate transactions overseas.
Apax bought a controlling stake in
Travelex in 2005 for more than 1bn.
Travelex declined to comment.
Western Union set to buy
Travelex payments unit
CURRENCY

French left
backs DSK for
shock return
BY STEVE DINNEEN
POLITICS

BY HARRY BANKS
BANKING

News
13 CITYA.M. 4 JULY 2011
Strauss-Kahn with his wife after his bail conditions were lifted on Friday
Eurozone runs the risk of going up in flames
L
AST week I had a scary near-miss
moment. I was so distracted by
uploading photos of myself look-
ing smug on Centre Court at
Wimbledon that I forgot to switch off
the hob. Next morning, I discovered
the gas had burned all night, perilous-
ly close to the tea towel and the dog.
But Wimbledon was so much more
exciting than the spag bol. I saw Sir
Trever McDonald and Annabel Croft
and some kids TV presenter from the
1980s.
Having avoided certain death at
home, I headed to work where I was
promptly distracted by scenes of high-
drama in Athens black-hooded
youths hurling stones in the shadow of
the Acropolis and knife-edge votes in
parliament and so on.
Elsewhere, the hob was burning and
the dog was looking worried,
metaphorically speaking.
Were already on the second round
of bailouts for Greece, but thats only
one of the so-called PIIGS. Ireland
and Portugal arent fixed. Spain and
Italy may have avoided a bailout so far,
but they arent out of the woods.
Spain has made valiant attempts at
reform, but yields on 10-year Spanish
debt have remained stubbornly above
five per cent. In Italy public debt is 120
per cent of GDP, growth is low and
efforts at structural reform are slow.
One man who didnt leave the hob
on last week was Hans-Werner Sinn,
president of the Ifo Institute, who
wrote about the murky outlook for the
Eurozone.
He points out that thanks to the
ECB, peripheral European countries
have been living beyond their means
and the European Stability
Mechanism has allowed them to con-
tinue running vast current account
deficits even longer. This is unsustain-
able and not just limited to Greece.
Sinn argues Ireland has cut wages
and now ordinary citizens of several
European countries must concede to
being materially poorer to resolve a
serious mis-pricing of assets. Thats
tough to stomach.
Closer to home, the prospect of
shrinking pensions was enough to
send hundreds of thousands of UK
public sector workers out on strike.
And we dont exactly have phenome-
nal growth either. Oh, and remember
the US debt ceiling deadline which is
less than a month away?
I dont subscribe to the double-dip
theory, but I do think we need to stop
being so easily entranced by successive
dramatic headlines and keep a broad-
er view of whats turning out to be a
patchy recovery. And one other thing.
You may have some exciting photos to
show your friends, but dont forget to
switch the hob off first.
Beccy Meehan is a presenter at CNBC
Europe.
CNBC COMMENT
REBECCA MEEHAN
TIMELINE
HOW THE STRAUSS-KAHN
CHARGES UNFOLDED
13 May 2011
IMF chief Dominique Strauss-Kahn
checks into the Sofitel hotel in New
York.
14 May 2011
A maid claims to have entered the
room, which she apparently thought
was unoccupied, to be met with
Strauss-Kahn running naked at her
from the shower. She claims he sexually
assaulted her and attempted to rape
her. He later admits a sexual encounter
but denies the charges. Strauss-Kahn
then checks out of the hotel, leaving
behind some personal belongings, and
goes to a scheduled lunch. After this he
boards a plane to France, on which he is
arrested from the first class section.
15 May 2011
Strauss-Kahn is charged with a criminal
sexual act, attempted rape and unlaw-
ful imprisonment. His wife, French tele-
vision personality Anne Sinclair, publicly
backs her husband.
16 May 2011
Strauss-Kahn appears in Manhattan
Criminal Court for his hearing. He is
denied bail and transferred to Rikers
Island jail.
17 May 2011
Strauss-Kahn resigns as managing
director of the IMF.
18 May 2011
A New York judge grants Strauss-Kahn
bail. The terms are $1m cash bail, 24-
hour home detention with electronic
monitoring and an armed guard.
1 July 2011
Speculation builds over the credibility of
the alleged victim, who appears to have
links to a suspected drug dealer and
was recorded discussing how she could
benefit from the case.
Pictures: REUTERS, PA
The former IMF boss makes an appearance in a New York court in early June
Strauss Kahn is led to court in cuffs by US police after his arrest in May
ANALYSIS l UBS
CHF
28Jun 29Jun 30Jun 27Jun 1 Jul
15.50
15.00
14.50
15.69
1 Jul
THE company that keeps chancellor
George Osborne hydrated during long
days at 11 Downing Street will this
morning announce its intention to
raise 41m on Londons Alternative
Investment Market (AIM), in the
exchanges second biggest float of the
year so far.
Waterlogic, which supplies purify-
ing water dispensers to offices, hotels
and gyms, including No.11, plans to
raise 41m to fund acquisitions, with
further spending planned to develop
its product line and repay loans.
If the listing prices at 1.45 per share
as planned, Waterlogic will
be valued at 112.5m, net-
ting co-founders Ariel
Recanati and Jeremy Ben-
David a combined paper
windfall of around 50m.
Recanati the son of
prominent Jewish business-
man Leon Recanati and
Ben-David founded
Waterlogic in 1992 with
150,000 of capital from
friends and family.
Under the terms of the listing, the
new chairman and chief executive of
the company will be locked into the
business for at least 12 months follow-
ing the float, after which their 90 per
cent overall stake in the company will
be diluted to around 25 per cent each.
Ahead of the publication of its offi-
cial listing prospectus this morning, a
company spokesman said the offer
was already oversubscribed by 2.5
times.
Much of the demand for the IPO is
down to interest in the companys fire-
wall technology, a unique Waterlogic
product, said a spokesperson for the
company. Firewall purifies water as it
is dispensed into the
cup, rather than in the
storage tank.
Waterlogic is also in
talks with a large water
utility to provide a
mains alternative to reg-
ular tap water, which
would allow them to
offer purified water sys-
tems in residential
households.
JON Moulton will plough a further
3m into Readers Digest after his
white-knight 13m bid saved the
iconic magazine from bankruptcy a
year ago.
He told City A.M. yesterday the firm
is undergoing radical changes and
the cash injection will help it realise
its ambitions of turning around its
fortunes.
He said: The changes to the busi-
ness are far-reaching and this doesnt
happen without investment.
This is probably the last
injection in the short-term but
after that, who knows?
The business is debt free and
everything is being funded by
Better Capital.
The investment takes Betters
total expenditure on the busi-
ness to around 23m.
The UK arm of the 87-year-
old publisher filed for
administration in February
2010, two weeks after the
Pensions Regulator rejected
a plan to plug the 125m hole
in its savings fund.
Management at the com-
pany took a 35 per cent stake
in the firm as part of the deal.
Readers Digest launched
in the US in 1922. It
made its name
by taking on
tobacco firms
with a series
of hard-hit-
ting articles
on lung
cancer.
Jon Moultons Better Capital to inject
a further 3m into Readers Digest
THE TROUBLED owner of Londons
fire engines is in advanced talks with
Bahraini investment group Arcapita
over a 10m rescue deal.
The company, which had previous-
ly tabled a bid for AssetCo earlier this
year, is understood to have returned
with a 4p-per-share offer.
AssetCos directors had previously
rejected a 21p-per-share bid from the
investment firm in March.
However, the company has been
close to the brink for several months,
forcing chief executive Tudor Davies
to consider a cut-price sale.
The company has debts of about
80m, which it has struggled to refi-
nance, and was almost wound up
earlier this year for an unpaid tax
bill.
Belfast-based lender Northern
Bank, which is owed 1.3m by
Assetco, had launched a creditors
petition to wind up the company,
due to be heard in court last week.
The case has been put back until 11
July, after AssetCo applied for an
administration order.
AssetCo in talks over sale
to Bahraini firm Arcapita
SUPPORT SERVICES

Water cooler
firm set for
a 41m float
BY ELIZABETH FOURNIER
CAPITAL MARKETS

BY STEVE DINNEEN
PRIVATE EQUITY

News
14 CITYA.M. 4 JULY 2011
Why businesses have to come first in the City
A
T the end of the 19th Century,
the Square Mile was home to
some 75,000 people; by 1950,
this number had decreased to
less than 10,000 and has remained
largely stable ever since.
These figures in themselves are not
surprising; they reflect the inherent
tensions that exist between business-
es and residents in any modern area
with a high concentration of office
space.
The City of London Corporation
goes to great lengths to provide a
high quality living environment for
its residents; a recent survey indicat-
ing that 95 per cent of residents are
satisfied or very satisfied with life in
the Square Mile suggests that these
efforts are largely successful.
However, as the worlds pre-emi-
nent financial centre, the City also
has a responsibility to its other resi-
dents, the thousands of firms drawn
from across the world.
To allow existing businesses to
grow and new businesses to flourish,
successful business districts require
careful planning and almost constant
commercial development.
That is why, last week, the City of
Londons Planning Committee
approved plans for two new office
blocks on London Wall, despite oppo-
sition from some of our Barbican res-
idents.
On this occasion following a
lengthy planning process and a series
of major concessions from the devel-
opers the Committee decided that
the economic benefits such a develop-
ment will provide outweighed the
concerns of local residents.
Of course, the Barbican is a desig-
nated and carefully planned residen-
tial area, albeit in a business hub; the
repercussions would be far more
severe if residential properties were
dotted randomly throughout the
City.
This is exactly the situation busi-
ness districts across the UK could be
facing if government plans to make it
easier for developers to convert office
space to residential properties the
consultation for which ended last
Thursday proceed unrevised.
Whilst the City appreciates the
need to deliver housing stock nation-
ally and is not opposed to further
development in the Square Mile, any
such provision must be in an appro-
priate location that does not restrict
the ability of business districts to ful-
fil their primary purposes.
Owners of residential properties
are well protected by law but unfortu-
nately many of these expectations of
residential amenity are incompatible
with commercial activity.
Converting offices to residential
properties would not only limit the
amount of immediately available
office space but it would also reduce
the supply of development sites.
Once a property has been convert-
ed it is unlikely to changed back, even
if the developer so desires. This is
because short leases are unsuitable
for residential purposes and they are
often tied up for 125 years.
Stuart Fraser is the Policy Chairman at the
City of London Corporation
CITY COMMENT
STUART FRASER
SIR Richard Branson accrued a divi-
dend of around 17.8m from his stake
in Virgin Rail last year, accounts from
its joint-owner show.
Virgin Rail, which has operated the
West Coast Main Line service between
London and Glasgow since 1997, is
part-owned by Branson and
Stagecoach.
Results published last week by the
bus and rail operator Stagecoach,
which owns 49 per cent of Virgin Rail,
showed it had received a 17.1m divi-
dend from the enterprise last year.
In turn, Branson who owns a 51
per cent stake in the company
would have been paid a dividend of
around 17.8m.
The payment brings the total
that Branson has made from the rail-
ways since they were privatised to
188.8m.
Virgin received no dividend from
Virgin Trains for the first seven years,
when hundreds of millions of pounds
were invested to transform Britains
railways. We now have a turnover of
750m a year and we are the fastest
growing train operator in the coun-
try, a spokesperson for Virgin told
City A.M.
Stagecoach also confirmed that
Virgin Rail is in talks with the govern-
ment to extend its current franchise
of the London to Glasgow line, which
comes to an end next year.
Branson paid
18m in Virgin
Rail dividend
TRANSPORT

Co-founders Jeremy Ben-David and Ariel Recanati will make millions from the float
WATERLOGIC is being advised on its
AIM listing by Steve Pearce, a senior
member of the corporate finance team
at Liberum Capital.
Pearce joined Liberum in 2007 from
Arden Partners, having previously
worked at Socit Generale and
PricewaterhouseCoopers.
With specific responsibility for the
telecoms, utilities, support services
and small & mid-cap sectors at
Liberum, Pearce has regularly worked
for business telecoms specialist Daisy
Group, including on its 87m takeover
of Vialtus Solutions in 2009, and of
Vodafones mobile voice and data busi-
ness Outsourcery earlier this year.
At Arden, Pearce advised Metal
Bulletin on its acquisition by
Euromoney Institutional Investor for
227m in 2006.
Qualified as a chartered accountant,
Pearce is a graduate of Durham
University.
MEET THE ADVISERS: LIBERUM CAPITAL
STEVE PEARCE
LIBERUM
CAPITAL
Hanson Green
Nick Aitchison, who stepped down
after three years as chairman of the
Leander Club on 30 June, will join as
non-executive director of the recruit-
ment company Hanson Green on 18
June. Prior to the Leander Club
chairmanship, Aitchison was a part-
ner at Stork & May.
TISA
The Tax Incentivised Savings
Association has appointed Carol
Knight, who joined the retail savings
body in 2004 as head of member
services, to its board of directors.
Venquis
The business transformation
recruiter has appointed Clare Eades,
formerly a senior consultant at
Eames Consulting Group, as head of
the companys insurance division.
Hedgebay
The secondary hedge fund firm has
promoted Lindsey Clavel from head
of business development in the UK
and Europe to head of the firms
European operations.
Ortac Resources
The AIM-listed exploration and
development company has appointed
Owen Mihalop as group mining engi-
neer. Until recently, Mihalop was
technical director of mining at engi-
neering consultancy Wardell
Armstrong International.
Oriel Securities
The stockbroking and advisory firm
has appointed Andrew Heath, who
joined Oriels sales team from Arden
Partners in 2009, as head of sales.
CitySprint
The distribution network has appointed
David Burtenshaw as non-executive
chairman. Burtenshaws previous logis-
tics roles include board positions at
Federal Express, ANC and Lynx Express.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
DTZ
Catherine Vasseur, who joined the real estate
adviser in January 2011, has been appointed
as head of UK property management and a
member of the UK executive committee. She
will continue to focus on seven service deliv-
ery areas covering clients, staff engagement
and the market perception of the business.
Previous roles include president and general
manager of CNH Capital Europe and head of
the consumer credit division at GE Capital.
+ 44 (0) 207 092 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
WALL STREET WEEK AHEAD
FTSE expected to open down on profit taking
W
ITH many US markets
closed today due to the
Independence Day holiday,
European stocks could be
presented with the ideal opportunity
to cash in some of the substantial
gains generated last week.
GFT quotes two-way prices on stock
indices around the clock, even when
the underlying markets are closed.
The FTSE 100 index is called to
open down 20 points at 6,099. The
German DAX is forecast to open down
22 points at 7,099, and the French
CAC 40 is down 11 points at 3,773.
The FTSE enjoyed a jump of over
five per cent or nearly 300 points last
week; that was its best week in almost
a year.
The main factor behind the rally
was Greece of course, and its approval
of the austerity plan which will
release additional bailout funding to
stave off a default for now.
I see the move as more of a relief
rally however, rather than one found-
ed on optimism, and with no direc-
tion from American indices,
consequently stocks are more prone
to the profit-taking that we are fore-
casting today.
Beyond today there is scope for
stocks to continue on their upward
path, with a good dose of US econom-
ic data on the radar to provide ample
trading opportunity.
The major event of the week is the
nonfarm payrolls report on Friday.
Consensus there was for a number
around the 100,000 mark.
Key data last week surprised to the
up side, including pending home
sales and the Chicago purchasing
managers report, as well as most sig-
nificantly the ISM manufacturing
index, which posted a figure of 55.3
versus expectations of just 51.8.
Many analysts have subsequently
revised their non-farm estimates
higher by 20 or 30,000 on the back of
those positive reports, so that now
the markets are probably looking for
a number north of around 125,000
jobs; anything less and we could be in
for some chunky profit-taking to
close the week out.
Ahead of Friday, other US data will
set the scene for the headline event,
including factory orders tomorrow
and weekly jobless claims on
Thursday.
The other main focus for the UK
market will be the Bank of Englands
interest rate decision, due out on
Thursday.
Despite inflation running at 4.5 per
cent, the Monetary Policy Committee
will almost inevitably keep the base
rate at 0.5 per cent.
According to the minutes of the
previous meeting, all but one of the
MPC members had even considered
additional quantitative easing.
Martin Slaney is director of global deal-
ing operations at GFT.
MARTIN ON
THE MARKETS
A
PULLBACK could be on the
table this week for US stocks
after their best weekly per-
formance in two years, espe-
cially if a raft of data headlined by
the June jobs report doesnt bolster
the argument of a strengthening
economy.
Stocks rose for five straight days
as the fog of the Greek debt crisis
appeared to once again be lifted
while better-than-anticipated eco-
nomic numbers such as Fridays
manufacturing data gave weight to
the belief the US economy was
starting to recover from a soft
patch.
What we are looking at is a mar-
ket that is going to focus on the
economic numbers, said Peter
Cardillo, chief market economist at
Avalon Partners in New York.
We had real good gains towards
the end of the quarter so it would-
nt surprise me to see a little bit of
profit taking before we get those
numbers out during the course of
the week.
Data expected for this week
includes factory orders for May, the
ISM services index and several indi-
cators on the labour market.
It is a little bit early to declare
victory over the mid-cycle slow-
down weve had, said Tim
Ghriskey, chief investment officer
of Solaris Asset Management in
New York.
On Friday, you have payrolls,
unemployment rate the big
Kahuna and there might be some
trepidation going into it, especially
with the market having already
rebounded sharply here over sever-
al days.
MARTIN SLANEY
p
26Apr 4Apr 18May 8Jun 28Jun
6,100
5,700
5,800
5,900
6,000
ANALYSIS l FTSE
5,989.76
1 Jul
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Premier Foods
40
30
20
p
4Apr 26Apr 18May 8Jun 28Jun
17.08
1 Jul
PREMIER FOODS
Citi retains its buy rating on the UK food producer, but raises its risk profile
to speculative from high and cuts it target price to 29p from 40p, to reflect
an increased covenant risk and recent hit to its profits. The broker says that
revenues have been affected by commodity pressure, a contract loss and the
delisting of a major customer, as well as tough market conditions. It cuts its
half-year profit forecast to 68m, but sees many issues as unlikely to recur.
ANALYSIS l Aveva
1,750
1,650
1,550
p
4Apr 26Apr 18May 8Jun 28Jun
1,742.00
1 Jul
AVEVA
Goldman Sachs reiterates its conviction buy rating on the engineering soft-
ware group, with a 12-month target price of 2,700p. The broker continues to
see the company as a structural winner in the European market due to its
strong industry positioning, exposure to infrastructure growth and increasing
share in offshore oil and gas development. The broker sees the stock as
undervalued compared to its peers, despite better forecasts across the board.
ANALYSIS l Debenhams
70
72
68
64
p
4Apr 26Apr 18May 8Jun 28Jun
69.95
1 Jul
DEBENHAMS
After better than expected like-for-like sales in the third quarter, UBS
rates the retailer as neutral with a target price of 70p. The broker
thinks Debenhams should report its underlying profits on a 52-week
basis to aid comparability, but based on the 53rd week benefit increas-
es its full-year sales outlook by 1.5 per cent, and lowers its gross mar-
gin to flat from +20 basis points.
News
15 CITYA.M. 4 JULY 2011
Donata Huggins meets
three men who left the
corporate world to
launch a holidays firm
specialising in fantastic
short weekend breaks
W
E LIVE in an age where every
business that operates in the digi-
tal space has the potential to
make an instant global impact.
Just look at Tweetdeck a London startup
that was snapped up by Twitter last month for
$40m, just three years after launching.
Many other digital businesses in the UK are
looking to make a similar impact and this
often means taking something that works
locally overseas. But it is easier said than done.
Early stage businesses face enormous chal-
lenges when pushing for international growth
and some of the most difficult challenges
come when looking to grow in Europe.
I first arrived in London from the US over a
decade ago, to set up Ticketmasters online
business in Europe. I led the international
team at Match.com that took the business
into more than 43 countries. I then set up
Seatwave, Europes largest online ticket
exchange, which now operates across a dozen
markets.
We launched in the UK for a host of reasons.
Its a country with a fanatical passion for
sport, a world leading music and cultural
scene, plus it was a market ready to shift away
from touting the primary means of exchang-
ing tickets for decades.
In the four years since we launched weve
built a highly effective way for fans to buy and
sell tickets safely and securely, but weve had
to deal with a host of challenges that led to
invaluable lessons along the way.
For a start, you have to be ready to adapt to
the vast differences in consumer tastes,
diverse economic conditions and contrasting
regulatory regimes across Europe. This pro-
vides a constant challenge when trying to
scale a business and the nuances between
each market cannot be ignored.
Just take the lack of legal harmony
between countries. While our customers are
permitted to resell football tickets in Germany,
theyre prohibited in the UK, so we need a
completely different approach between the
two countries.
Thats a small example but emblematic of
the hurdles a business looking to serve multi-
ple European markets needs to overcome.
And these inconsistencies mean that online
businesses based in Europe often spend more
of their time figuring out how to operate in
markets rather than actually operating in
them.
Many commentators ask why Europe hasnt
produced a Facebook or a Google, but the real-
ity is that European businesses face far
tougher challenges to scale than their US or
Asian counterparts.
While European businesses tend to focus on
markets of 40-90m people, their US rivals
start with an audience of more than 300m.
Their Indian and Chinese counterparts are
starting with more than 1bn.
Skype and Spotify are rare exceptions that
have built a large international audience. Their
scarcity neatly highlights the difference
between a US start-up and one from Europe.
My advice to European entrepreneurs is to
target a global audience from day one. Given
Europes excessive red tape and exclusionary
approach, it requires the same overhead to
aim your business at a market of 500,000 as
it does one of 20m.
By developing a model that translates inter-
nationally, businesses then have the potential
to become global success stories, just as
Skype, Spotify and yes, Tweekdeck have done.
The key thing is to think big from the very
beginning.
Joe Cohen is the CEO and founder
of Seatwave.com
HOW TO LAUNCH
YOUR BUSINESS
ACROSS EUROPE
JOE COHEN
ENTREPRENEUR
I
TS the perennial Monday morning
question: What did you do over the
weekend? And in most offices: Erm,
not much, just doesnt cut it week
after week. Especially in the City, where
even the most passive of activities can be
made competitive. Three men Alastair
Poulain, a former venture capitalist, Nick
Newbury who worked as a corporate
financer at ING and Tom Barber, previous-
ly a journalist took the problem and
made a business out of the solution.
Little beats the feeling of coming into the
office on Monday and saying that you
went dog-sledging in Lapland, says
Poulain.
There was a huge gap in the market for
big short breaks, that is, original trips
that require little or no time off work,
explains Newbury. The thing about the
City is that your boss doesnt want you to
take a holiday and you dont want to take
one either because youre convinced that
when you get back a young gun in the
office will have nicked your job.
Their business journey began in a spare
room in 2003. Now they have a three-
storey office, thirty staff and a cabinet
stuffed full of business awards. But before
they quit their jobs and took on the busi-
ness full time, they drafted together a
business plan and pooled their funds,
using 44,000 of savings to kick-start the
adventure.
We didnt have a marketing budget in
the first year, Poulain explains, so it was
a matter of sending out hundreds of
emails to our friends in the City, letting
them know we existed. Its amazing we
grew so fast. They expanded far more
speedily than they had imagined. We had
planned to stay in the spare room for a
year and a half, but through a combina-
tion of a lack of space and how bad Tom
smelt in the morning, we decided to move
into a bigger space earlier than expected.
The group opted for an injection of pri-
vate equity finance to grow the business
in 2008: I think our knowledge of the pri-
vate equity industry made it much easier
to find the funding we wanted, says
Newbury. We knew from experience that
some funding offers can be really aggres-
sive and domineering. It was for that rea-
son, we actually chose not to go with the
company that valued the business at the
highest level, but instead for the deal we
were most comfortable with.
But that wasnt the only advantage that
City life gave the trio: I think our original
niche came from the fact that other travel
agencies werent sensitive enough to the
needs of City workers, Barber explains.
Two-thirds of us, he laughs at himself,
were accustomed to being super-stressed
out and didnt have time to organise
adventurous short breaks.
Company name: Original Travel
Size: Its compound annual growth rate in rev-
enue terms has hit 50 per cent over the last
three years
Staff: 30
Awards: BT Essence of the Entrepreneur 2008;
Runner Up Best Applied Brand in Leisure Sector,
Marketing 2003; Guardian Observer Awards:
Best Short Break Tour Operator 2008; Best Tour
Operator 2007; Best Brochure 2005, 2003
MEET THE MANAGEMENT
Name: Nick Newbury
Title: Co-founder and chief executive
Age: 38
Studied: French and Economics, Durham
University
Talent: Sadly, Excel-geek is the one Im normal-
ly labelled with.
Name: Alastair Poulain
Title: Co-founder and chief operator
Age: 38
Studied: History, Bristol University
Talent: I won the Victor Ludorum twice in
1985 and 1986.
Name: Tom Barber
Title: Co-founder and director for product devel-
opment
Age: 38
Studied: Psychology, Durham University
Talent: Writing and spotting a trend.
CV | ORIGINAL TRAVEL
Adventures tailor-made
for City boy weekends
From left to right: Nick Newbury, Alastair Poulain and Tom Barber Picture: Micha Theiner/City A.M.
ENTREPRENEURS NEWS | IN BRIEF
MIND CANDY AND LOVEFILM WIN AWARDS
The British Private Equity and Venture Capital
Association (BVCA) awarded Mind Candy and
LoveFilm business management awards at a
black tie ceremony held in London last week.
Mind Candy, the business behind childrens
social networking sensation Moshi Monsters,
picked up the Venture Capital Backed-
Management Team of the Year award, while
Lovefilm received Exit Management Team of
the Year award. Mark Florman, chief executive
of the BVCA, says: The management team
represent the best our industry has to offer
and are a perfect illustration of what can be
achieved through sheer hard work and talent.
ERNST AND YOUNG ENTREPRENEUR AWARDS
Christopher Dawson has been named Ernst &
Young London and South Entrepreneur of the
Year 2011. He is behind the retail business The
Range, stocking everything from furniture to
camping equipment. In 2011, Dawson opened
the fiftieth outlet of the business, employing
3,200 people across the UK, with profits of
245m. The independent judges describe
Dawson as an original entrepreneur, who start-
ed with nothing, including no external financing,
and with passion has built a very profitable busi-
ness. He has fantastic drive and spirit, for whom
there are no limits to what he can do, and who
sees opportunity in everything he does.
NON-DOMS RULES TO HELP ENTREPRENEURS
More relaxed tax rules for non-domiciled
people who invest in companies which carry
on a trade, or develop or let commercial prop-
erty, will boost enterprise sectors, according
to the tax specialists Smith & Williamson.
Tim Lyford, the UKs head of corporate tax at
Smith & Williamson, says: In recent years,
non-doms have been discouraged from invest-
ing in UK businesses because of the potential
tax charges. However, the proposed new rules
will make it easier for people to put money
into companies and provide welcome flexibili-
ty. In short, the changes should be great news
for the enterprise economy.
Business Features| Entrepreneurs
16 CITYA.M. 4 JULY 2011
THE WEEK AHEAD in association with
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Buy the rumour...
...Sell the fact?
COMPANIES
l Today, St Modwen
Properties will release its
interim results. It is certain-
ly not a good time to be in
the housing business and
results are expected to
reflect this.
l Tomorrow, retailer N
Brown Group will deliver its
interim management state-
ment. James David Williams
founded the FTSE 250
home shopping retailer in
1859.
l Balfour Beatty gives its
trading update on
Wednesday. The construc-
tion company has recently
bought US contractor
Howard S Wright (HSW)
for $93m. This is its second
US purchase this month in
its moves to build up US
operations.
ECONOMICS
lToday, Markits UK
Purchasing Managers'
Index (PMI) for construc-
tion output is released. Its
a leading indicator.
l Tomorrow, the RBA
announces its decision on
interest rates, with the
markets expecting rates to
be kept on hold at 4.75 per
cent.
l On Thursday, the Bank of
England and ECB will
announce their decisions on
rates. Markets dont expect
a rise in the UK, but they
are expecting a 0.25 per
cent rise from the ECB.
Later in the afternoon
Jean-Claude Trichet will
deliver his ECB statement,
which traders will dissect
for clues on future mone-
tary policy.
POLITICS
l Coinciding with US
Independence Day, a statue
of Ronald Reagan is being
be unveiled in Grosvenor
Square today. Current
Republicans would no doubt
welcome a candidate with
his skills to face Obama.
l Tomorrow, Labour MPs
will vote on whether to
accept Ed Milibands plan to
scrap shadow cabinet elec-
tions. If successful, it would
also have to be agreed by
Labours national executive
committee as well as at its
annual conference.
l On Thursday, the IMF will
decide whether to pay the
full 3.25bn in aid to Greece.
In addition to the latest
payment of 8.75bn, the EU
has pledged to make up any
shortfall from the IMF.
A
REPORT from the US
Department of Agriculture at
the end of last week, flagging a
marked increase in the amount
of corn being sown by farmers, sent
prices tumbling. A good harvest will
certainly take the pressure off food sup-
plies and in turn the prices being
charged globally, but some will simply
see this weakness as a buying opportu-
nity. IG Index offers $6.03-$6.04 per
bushel.
The markets are breathing a sigh of
relief that Greece is out of the immedi-
ate firing line since the austerity meas-
ures were passed last week. This was
the green light investors needed to buy
up risk. While the recent rally may be
built on shaky foundations, stocks are
likely to benefit for as long as it lasts.
Forex.com has a current spread for
S&P 500 of 1,328.25-1,329.
Recent weakness in the sterling-
euro pairing has seen the pound slip to
its lowest level since May 2010.
Purchasing Managers Index (PMI) fig-
ures for construction are due out
today. Having risen from 53.5 to 54
last month, a disappointing figure
today could well drive sterling even
lower. CMC markets offers a spread on
sterling-euro of 0.9035-0.9036.
House builder Persimmon has had a
decent first half of the year, with its
share price gradually inclining since the
turn of 2011. It recently announced in
April that new home sales have
increased since January, and have just
signed up as one of the house builders
the government will use as part of its
new scheme for first time buyers,
called FirstBuy. It is due to update the
market tomorrow and its develop-
ments could be in line with its sector
counterparts. Capital Spreads quotes
482.5p-483.8p.
Easyjet give a trading update on
Wednesday and its share price has still
failed to meaningfully recover from its
profit warning in January, spending
most of its time hovering around 350p.
Since oil prices have come off its highs,
an upbeat trading statement could be
enough to send the share price higher
again. Capital Spreads quotes 357.0p-
358.9p for the stock.
Craig Drake
THE TIPSTER
HARVESTING
A BIG BUSHEL
OF PROFITS
management, focusing as much on
where they exit a trade as where they
enter one. On being in the futures pit,
Brown recalls trading with his fellow
traders, often creating equal and
opposite positions to each other.
However, by the end of the day we
would all have made money, because
we had effective risk management
strategies, which proved to be more
important than whether we were
long or short in the first place.
From looking across the positions
held by his clients and speaking to
them personally, Brown says there
appears to be a broad consensus that
traders expect a consumer led double
dip recession. Nevertheless, they are
currently long on European and US
equities on the expectation that there
will be a rally inside the next four
months. Clients are also long on com-
modities and have been so for a while.
Although some may have suffered on
the recent pullbacks, professional
traders are generally good at getting
out of losing positions and continuing
to trade to make back any losses
incurred.
From speaking directly with his
clients, Brown says most believe mar-
ket interventions and fiscal stimuli
are delaying the inevitable, adding
that a number of clients believe that
some banks should have been left to
their own devices in the credit
crunch. Unlike the wider market,
which hasnt yet coalesced around the
expectation of a Greek default, Brown
says a significant majority of
ProSpreads customers think its
default is inevitable. The US is still
being backed, particularly through
the dollar, but this is not so much
because of confidence in its economy,
but an acceptance that there is no
alternative. Brown says equities are
favoured for similar reasons.
Only time will tell whether these
particular traders are right about the
big economic picture, but given their
expertise and willingness to put a lot
of money on the table, their outlook
should be taken very seriously indeed.
L
IVING, as we do, in uncertain eco-
nomic times, it is helpful to take
a peek at what the experts are
doing. Simon Brown is the per-
son to turn to. He is managing direc-
tor of ProSpreads, a Gibraltar based
spread betting provider catering only
to professional traders. Because of its
niche clientele, Brown is able to give a
sense of the direction of travel expect-
ed in the markets by the people that
live and breathe them. By looking at
their interday positions, he is able to
get a flavour of what the thoughts of
traders are. Brown cut his teeth on
the bustling London International
Financial Futures Exchange (LIFFE),
where he stood, waived his hands and
shouted for 12 years. This experience
helps him better understand the
needs of the professional trader.
ProSpreads is unique in offering the
functionality of Direct Market Access
(DMA), providing a similar environ-
ment used in the day job of the many
professional traders the company
serves. Building upon its offering in
the major indices, commodities and
currency markets, it now provides
access to individual stocks on the FTSE
100, FTSE 250, Eurostoxx 50 and the
Dow 30. In order to gain new clients,
ProSpreads relies principally upon
word-of-mouth, with Brown stating
that over 50 per cent of current
traders came to ProSpreads upon the
recommendation of existing clients.
As well as trading higher amounts
than the average retail client, Brown
says ProSpreads benefits from the fact
that many of its traders are savvy. As
such, they are much less likely to lose
their money and stop trading.
Professional traders emphasise risk
Pro traders have a gloomy
outlook for global economy
Experts trading at ProSpreads
offer a unique perspective on
the market, says Philip Salter
17
Wealth Management | Spread Betting
Opinions from the
pit are hard to
ignore
Picture: PA
We think you can do the maths.
0.8pt spreads, still the tightest.*
Only at www.spreadco.com
Spread betting can result in losses
that exceed your initial deposit
Spread Co is authorised and regulated by the Financial Services Authority
*0.8 spreads available on certain products in-hours - see site for details.
Spread Betting . CFDs . FX
1? 0.9?
Or 0.8?
LON GD ONCE FIX AM...........1492.75 -15.25
SILVER LDN FIX AM ..................33.89 -0.90
MAPLE LEAF 1 OZ ....................50.00 -2.00
LON PLATINUM AM................1703.00 -21.00
LON PALLADIUM AM...............752.00 -7.00
ALUMINIUM CASH .................2508.00 17.00
COPPER CASH ......................9300.00 125.00
LEAD CASH...........................2622.00 37.00
NICKEL CASH......................23100.00 220.00
TIN CASH.............................25850.00 545.00
ZINC CASH ............................2314.00 54.00
BRENT SPOT INDEX................112.14 1.32
SOYA .....................................1306.25 -28.00
COCOA..................................3170.00 56.00
COFFEE...................................265.35 5.10
KRUG.....................................1540.60 -23.40
WHEAT ....................................160.00 2.88
AIR LIQUIDE........................................99.03 0.19 100.65 79.85
ALLIANZ..............................................97.43 1.10 108.85 78.99
ALSTOM ..............................................42.35 -0.17 45.32 30.78
ANHEUS-BUSCH INBEV ....................40.04 0.04 46.33 38.68
ARCELORMITTAL...............................24.20 0.20 28.55 20.26
AXA......................................................15.85 0.18 16.16 10.88
BANCO SANTANDER...........................8.17 0.21 10.23 7.00
BASF SE..............................................67.84 0.27 70.22 40.74
BAYER.................................................55.67 0.23 59.44 43.27
BBVA......................................................8.34 0.25 10.71 6.75
BMW ....................................................67.77 -1.04 70.02 37.80
BNP PARIBAS.....................................54.54 1.31 59.93 43.13
CARREFOUR ......................................28.16 -0.16 41.28 25.95
CREDIT AGRICOLE............................10.80 0.43 12.92 8.13
CRH PLC .............................................15.48 0.21 17.52 11.51
DAIMLER.............................................51.59 -0.31 59.09 37.03
DANONE..............................................51.55 0.10 52.94 41.00
DEUTSCHE BANK..............................41.81 1.06 51.61 35.93
DEUTSCHE BOERSE .........................52.93 0.53 62.48 46.33
DEUTSCHE TELEKOM.......................10.69 -0.13 11.38 9.50
E.ON.....................................................19.95 0.36 25.54 18.25
ENEL......................................................4.50 -0.00 4.86 3.42
ENI .......................................................16.49 0.18 18.66 14.62
FRANCE TELECOM............................14.66 -0.01 17.45 14.01
GDF SUEZ ...........................................25.32 0.08 30.05 22.64
GENERALI ASS...................................14.89 0.34 17.05 13.31
IBERDROLA..........................................6.22 0.09 6.50 4.38
ING GROEP CVA...................................8.67 0.18 9.50 5.92
INTESA SANPAOLO.............................1.91 0.08 2.53 1.65
KON.PHILIPS ELECTR.......................17.66 -0.05 26.43 15.56
L'OREAL..............................................89.59 0.03 90.00 75.03
LVMH..................................................125.85 1.75 129.05 84.85
MUNICH RE.......................................106.30 0.85 126.00 99.62
NOKIA....................................................4.45 -0.02 8.49 4.03
REPSOL YPF.......................................24.15 0.21 24.90 16.30
RWE.....................................................38.82 0.59 56.49 36.71
SAINT-GOBAIN...................................45.06 0.40 47.64 27.81
SANOFI ................................................55.50 0.06 56.50 44.01
SAP......................................................41.80 0.05 46.15 34.13
SCHNEIDER ELECTRIC ...................116.95 1.75 123.65 79.70
SIEMENS .............................................94.90 0.20 99.39 70.02
SOCIETE GENERALE.........................42.44 1.52 52.70 32.50
TELECOM ITALIA..................................0.96 -0.00 1.16 0.89
TELEFONICA ......................................16.99 0.13 19.69 14.95
TOTAL..................................................39.91 0.03 44.55 35.66
UNIBAIL-RODAMCO SE...................160.00 0.55 160.25 111.60
UNICREDIT............................................1.54 0.08 2.24 1.31
UNILEVER CVA...................................22.79 0.19 24.11 20.68
VINCI ....................................................44.51 0.34 45.48 33.01
VIVENDI ...............................................19.05 -0.13 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5989.76 44.05 0.74
FTSE 250 INDEX . . . . . . . 12040.28 106.24 0.89
FTSE UK ALL SHARE . . . . 3120.33 23.61 0.76
FTSE AIMALL SH . . . . . . . . 864.22 6.26 0.73
DOWJONES INDUS 30 . . 12582.77 168.43 1.36
S&P 500 . . . . . . . . . . . . . . . 1339.67 19.03 1.44
NASDAQ COMPOSITE . . . 2816.03 42.51 1.53
FTSEUROFIRST 300 . . . . . 1119.36 8.39 0.76
NIKKEI 225 AVERAGE. . . . 9868.07 51.98 0.53
DAX 30 PERFORMANCE. . 7419.44 43.20 0.59
CAC 40 . . . . . . . . . . . . . . . . 4007.35 25.14 0.63
SHANGHAI SE INDEX . . . . 2759.36 -2.71 -0.10
HANG SENG. . . . . . . . . . . 22398.10 336.92 1.53
S&P/ASX 20 INDEX . . . . . . 2777.40 -9.90 -0.36
ASX ALL ORDINARIES . . . 4647.90 -11.90 -0.26
BOVESPA SAO PAOLO. . 63394.34 990.70 1.59
ISEQ OVERALL INDEX . . . 2994.18 40.89 1.38
STI . . . . . . . . . . . . . . . . . . . . 3139.01 18.57 0.60
IGBM. . . . . . . . . . . . . . . . . . 1064.21 14.45 1.38
SWISS MARKET INDEX. . . 6237.81 50.74 0.82
Price Chg %chg
3M........................................................96.67 1.82 97.95 77.04
ABBOTT LABS ...................................53.10 0.48 54.24 44.59
ALCOA ................................................16.31 0.45 18.47 9.81
AMAZON.COM..................................209.49 5.00 210.27 105.80
AMERICAN EXPRESS........................52.34 0.64 52.50 37.33
AMGEN INC.........................................58.28 -0.07 61.53 50.34
APPLE...............................................343.26 7.59 364.90 236.78
AT&T....................................................31.68 0.27 31.94 23.88
BANK OF AMERICA...........................11.09 0.13 15.72 10.40
BERKSHIRE HATAW B.......................78.09 0.70 87.65 73.23
BOEING CO.........................................74.27 0.34 80.65 59.48
BRISTOL MYERS SQUI ......................29.15 0.19 29.54 20.05
CATERPILLAR..................................108.62 2.16 116.55 58.06
CHEVRON.........................................104.09 1.25 109.94 66.83
CISCO SYSTEMS................................15.86 0.25 26.00 14.78
CITIGROUP.........................................42.88 1.24 51.50 36.20
COCA-COLA.......................................68.09 0.80 68.77 49.47
COLGATE PALMOLIVE......................88.47 1.06 89.36 73.12
CONOCOPHILLIPS.............................75.88 0.69 81.80 48.06
DU PONT(EI) DE NMR........................54.47 0.42 57.00 33.73
EMC CORP..........................................27.83 0.28 28.73 17.87
EXXON MOBIL....................................82.01 0.63 88.23 55.94
GENERAL ELECTRIC.........................19.20 0.34 21.65 13.75
GOLDMAN SACHS GRP..................136.60 3.59 175.34 128.30
GOOGLE A........................................521.03 14.65 642.96 433.63
HEWLETT PACKARD.........................37.05 0.65 49.39 33.95
HOME DEPOT.....................................36.73 0.51 39.38 26.62
IBM.....................................................174.54 2.99 174.65 120.61
INTEL CORP .......................................22.53 0.37 26.78 17.60
J.P.MORGAN CHASE.........................41.58 0.64 48.36 35.16
JOHNSON & JOHNSON.....................67.30 0.78 67.37 56.86
KRAFT FOODS A................................35.47 0.24 35.50 24.30
MC DONALD'S CORP ........................85.65 1.33 85.80 65.31
MERCK AND CO. NEW......................35.60 0.31 37.68 31.06
MICROSOFT........................................26.02 0.02 29.46 22.73
OCCID. PETROLEUM.......................105.52 1.48 117.89 72.13
ORACLE CORP...................................33.05 0.14 36.50 21.24
PEPSICO.............................................70.19 -0.24 71.89 60.32
PFIZER ................................................20.75 0.15 21.45 14.00
PHILIP MORRIS INTL .........................66.75 -0.02 71.75 45.55
PROCTER AND GAMBLE ..................64.27 0.70 67.72 56.57
QUALCOMM INC ................................57.88 1.09 59.84 31.63
SCHLUMBERGER ..............................87.60 1.20 95.64 52.91
TRAVELERS CIES ..............................59.11 0.73 64.17 48.17
UNITED TECHNOLOGIE ....................90.13 1.62 90.67 63.62
UNITEDHEALTH GROUP...................53.13 1.55 53.27 27.13
VERIZON COMMS ..............................37.80 0.57 38.95 25.80
WAL-MART STORES..........................53.51 0.37 57.90 47.77
WALT DISNEY CO ..............................39.72 0.68 44.34 30.72
WELLS FARGO & CO.........................28.67 0.61 34.25 23.02
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 ..................0.900 -0.88
LIBOR Euro - 12 months ................2.147 0.01
LIBOR USD - overnight...................0.125 0.00
LIBOR USD - 12 months.................0.734 0.00
HaIifax 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 Iong bond yieId .........................4.020 0.03
European repo rate.........................0.931 -0.04
Euro Euribor ....................................1.177 -0.01
The vix index ...................................15.72 -0.80
The baItic dry index ........................1.413 -0.00
Markit iBoxx...................................218.64 -1.07
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4529 0.0034
C/ 0.9038 0.0004
C/ 117.39 0.5500
/C 1.1066 0.0036
/$ 1.6073 0.0026
/ 129.88 0.7204
FTSE 100
5989.76
44.05
FTSE 250
12040.28
106.24
FTSE ALLSHARE
3120.33
23.61
DOW
12582.77
168.43
NASDAQ
2816.03
42.51
S&P 500
1339.67
19.03
Rexam . . . . . . . . . . . .395.0 12.2 400.0 290.4
RPC Group . . . . . . . .368.6 5.4 373.0 199.9
Smiths Group . . . . .1200.0 -1.0 1429.0 1043.0
Brown (N.) Group . . .263.1 0.1 311.2 221.0
Carpetright . . . . . . . . .637.0 -14.0 835.5 631.0
Debenhams . . . . . . . . .70.0 1.0 77.4 55.1
Dignity . . . . . . . . . . . .782.5 -7.5 795.0 627.5
Dixons RetaiI . . . . . . .16.7 -0.1 28.5 11.8
DuneImGroup . . . . . .399.3 10.3 550.0 325.3
HaIfords Group . . . . .370.2 -1.0 525.0 348.2
Home RetaiI Group . .164.7 1.0 244.5 159.1
Inchcape . . . . . . . . . .425.4 7.5 436.6 237.1
JD Sports Fashion . .944.5 14.5 1005.0 723.5
Kesa EIectricaIs . . . .138.0 0.3 174.0 109.8
Kingfisher . . . . . . . . .266.2 -1.0 287.1 198.5
Marks & Spencer G . .367.6 6.2 427.5 327.2
Mothercare . . . . . . . .403.2 5.2 627.5 381.5
Next . . . . . . . . . . . . .2300.0 -25.0 2340.0 1868.0
Sports Direct Int . . . .240.0 3.7 252.4 101.1
WH Smith . . . . . . . . . .493.0 3.1 523.0 398.2
Smith & Nephew . . . .674.5 9.5 742.0 537.5
Synergy HeaIth . . . . .908.0 -7.0 948.0 640.0
Barratt DeveIopme . .115.8 1.6 119.0 70.1
YuIe Catto & Co . . . . .226.6 -0.8 240.5 112.7
BaIfour Beatty . . . . . .312.0 3.5 357.3 229.8
KeIIer Group . . . . . . .470.0 3.8 698.5 432.0
Kier Group . . . . . . . .1379.0 19.0 1418.0 886.5
Drax Group . . . . . . . .498.1 -5.4 507.0 353.6
Scottish & Southe . .1398.0 5.0 1410.0 1108.0
Domino Printing S . .695.0 13.0 705.0 440.0
HaIma . . . . . . . . . . . . .418.9 4.6 420.3 265.4
Laird . . . . . . . . . . . . . .203.0 0.5 204.0 98.8
Morgan CrucibIe C . .321.4 13.5 333.0 179.5
Renishaw . . . . . . . . .1787.0 34.0 1819.0 725.0
Spectris . . . . . . . . . .1610.0 18.0 1626.0 740.5
Aberforth SmaIIer . . .687.5 2.0 714.0 507.0
AIIiance Trust . . . . . .389.0 3.1 391.4 293.5
Bankers Inv Trust . . .420.0 3.6 428.0 337.0
BH GIobaI Ltd. GB .1108.0 0.0 1174.0 1058.0
BH GIobaI 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 1771.0 -2.0 1780.0 1630.0
BH Macro Ltd. USD . . .17.1 -0.1 17.2 15.8
BIackRock WorId M .764.0 7.5 815.5 533.0
BIueCrest AIIBIue . . .173.7 -0.4 176.2 163.8
British Assets Tr . . . .136.0 0.0 140.5 105.0
British Empire Se . . .530.0 6.5 533.0 404.1
CaIedonia Investm .1730.0 17.0 1928.0 1539.0
City of London In . . .301.2 -0.1 303.2 235.0
Dexion AbsoIute L . .145.2 -0.5 151.0 131.2
Edinburgh Dragon . .247.0 -0.3 262.1 206.6
Edinburgh Inv Tru . . .475.0 4.2 492.2 372.2
EIectra Private E . . .1728.0 -5.0 1755.0 1195.0
F&C Inv Trust . . . . . .323.2 3.4 323.2 251.4
FideIity China Sp . . . .102.3 -0.2 128.7 93.0
FideIity European . .1268.0 8.0 1287.0 916.0
FideIity SpeciaI . . . . .578.0 7.5 595.0 503.0
HeraId Inv Trust . . . . .532.0 3.5 541.0 352.5
HICL Infrastructu . . . .114.9 0.0 121.3 112.0
Impax Environment .117.1 0.6 130.5 106.5
JPMorgan American .891.0 1.0 909.0 673.0
JPMorgan Asian In . .237.5 0.2 250.8 187.1
JPMorgan Emerging .600.5 3.0 639.0 479.5
JPMorgan European .945.5 10.5 983.5 618.0
JPMorgan Indian I . . .427.0 0.4 502.0 394.1
JPMorgan Russian .681.5 7.5 755.0 502.0
Law Debenture Cor . .377.5 4.7 377.8 274.1
MercantiIe Inv Tr . . .1077.0 10.0 1137.0 840.0
Merchants Trust . . . .426.0 7.1 431.8 320.0
Monks Inv Trust . . . .352.8 5.3 367.9 275.5
Murray Income Tru . .665.0 5.5 672.0 518.0
Murray Internatio . . .991.5 4.5 991.5 805.5
PerpetuaI Income . . .270.7 -0.6 276.0 212.0
PoIar Cap TechnoI . .362.0 4.3 391.2 275.6
RIT CapitaI Partn . . .1316.0 20.0 1328.0 1107.0
Scottish Inv Trus . . . .519.5 4.5 520.0 401.5
Scottish Mortgage . .770.0 10.0 770.0 533.0
SVG CapitaI . . . . . . . .265.0 3.0 279.8 148.8
TempIe Bar Inv Tr . . .941.0 4.0 947.5 717.0
TempIeton Emergin .663.0 12.0 689.5 515.0
TR Property Inv T . . .202.8 2.6 202.8 132.3
TR Property Inv T . . . .92.5 0.4 92.5 59.5
Witan Inv Trust . . . . .524.0 2.0 528.0 409.9
3i Group . . . . . . . . . . .285.1 4.0 340.0 254.1
3i Infrastructure . . . .121.0 0.0 125.2 108.9
Aberdeen Asset Ma .224.7 1.6 240.0 123.0
Ashmore Group . . . .404.5 6.1 405.0 236.5
BerkeIey TechnoIo . . . .4.3 0.0 9.0 2.2
Brewin DoIphin Ho . .147.4 -1.1 185.4 114.0
CameIIia . . . . . . . . .10200.0 45.010950.0 7600.0
CharIes TayIor Co . . .153.0 1.5 234.0 122.0
City of London Gr . . . .78.5 0.0 93.6 70.7
City of London In . . .440.0 10.8 461.5 273.5
CIose Brothers Gr . . .783.0 11.0 888.5 664.0
CoIIins Stewart H . . . .69.0 -1.3 90.8 69.0
EvoIution Group . . . . .63.5 1.3 92.0 62.3
F&C Asset Managem .75.6 0.6 92.9 47.5
Hargreaves Lansdo .616.0 8.5 646.5 317.4
HeIphire Group . . . . . . .3.8 0.1 44.0 3.2
Henderson Group . . .154.6 2.0 173.1 118.1
Highway CapitaI . . . . .18.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .497.2 24.2 570.5 380.2
IG Group HoIdings . .445.5 9.1 553.0 416.2
Intermediate Capi . . .325.8 3.1 360.3 240.4
InternationaI Per . . . .388.8 20.9 389.4 183.3
InternationaI Pub . . . .117.9 -0.1 118.3 108.6
Investec . . . . . . . . . . .512.5 8.0 538.0 429.2
IP Group . . . . . . . . . . . .52.0 2.5 53.8 27.9
Jupiter Fund Mana . .260.0 7.1 337.3 180.3
Liontrust Asset M . . . .79.8 1.3 95.3 70.0
LMS CapitaI . . . . . . . . .62.8 0.5 64.8 40.0
London Finance & . . .21.0 0.0 23.5 16.5
London Stock Exch 1033.0 -28.0 1063.0 544.0
Lonrho . . . . . . . . . . . . .18.0 0.3 19.8 10.0
Man Group . . . . . . . . .242.3 5.3 311.0 206.4
Paragon Group Of . .196.3 -2.1 206.1 114.4
Provident Financi . . .974.5 11.5 1033.0 728.5
Rathbone Brothers .1139.0 8.0 1257.0 762.5
Record . . . . . . . . . . . . .31.8 -1.5 52.8 20.3
RSM Tenon Group . . .24.5 -0.3 66.3 21.3
Schroders . . . . . . . .1583.0 36.0 1922.0 1154.0
Schroders (Non-Vo .1339.0 26.0 1554.0 950.5
TuIIett Prebon . . . . . .380.0 25.7 428.6 307.5
WaIker Crips Grou . . .51.0 0.0 52.9 46.5
BT Group . . . . . . . . . .199.9 -1.6 202.0 126.3
CabIe & WireIess . . . .40.6 0.1 61.4 37.5
CabIe & WireIess . . . .46.3 0.3 90.0 45.0
COLT Group SA . . . .143.4 0.4 156.2 109.0
TaIkTaIk TeIecom . . .145.1 2.1 168.3 114.3
TeIecomPIus . . . . . . .689.5 24.5 700.0 327.0
Booker Group . . . . . . .68.5 0.9 70.3 39.5
Greggs . . . . . . . . . . . .547.5 17.0 548.0 418.7
Morrison (Wm) Sup .295.0 -2.7 308.3 262.7
Ocado Group . . . . . . .187.9 5.6 285.0 123.5
Sainsbury (J) . . . . . . .328.9 -0.5 395.0 317.2
Tesco . . . . . . . . . . . . .401.2 -0.9 440.7 377.5
Associated Britis . .1078.0 -5.0 1182.0 940.0
Cranswick . . . . . . . . .724.0 -4.5 907.5 723.0
Dairy Crest Group . . .370.1 0.1 424.9 339.7
Devro . . . . . . . . . . . . .270.0 0.1 296.9 196.8
Premier Foods . . . . . . .17.1 -1.9 35.1 16.0
Tate & LyIe . . . . . . . . .619.0 3.0 656.0 409.1
UniIever . . . . . . . . . .2012.0 6.0 2014.0 1688.0
Mondi . . . . . . . . . . . . .639.0 18.5 641.5 367.6
Centrica . . . . . . . . . . .325.9 2.6 346.1 292.8
InternationaI Pow . . .320.8 -0.9 448.6 295.9
NationaI Grid . . . . . . .615.5 3.0 632.5 485.0
Northumbrian Wate .422.0 6.4 422.0 295.5
Pennon Group . . . . . .701.0 3.0 701.1 546.0
Severn Trent . . . . . .1494.0 22.0 1517.0 1216.0
United UtiIities . . . . .610.5 11.5 632.0 522.0
Cookson Group . . . . .689.0 16.5 724.5 367.4
DS Smith . . . . . . . . . .256.0 4.9 256.5 118.0
GIencore Internat . . .489.0 -2.0 531.1 466.7
BAE Systems . . . . . .318.9 0.4 369.9 294.7
Chemring Group . . . .634.5 -5.5 736.5 519.6
Cobham . . . . . . . . . . .213.8 2.2 247.6 192.3
Meggitt . . . . . . . . . . . .382.1 0.6 383.1 261.7
QinetiQ Group . . . . . .129.1 8.4 136.3 96.7
RoIIs-Royce Group . .647.5 2.5 665.0 535.0
Senior . . . . . . . . . . . . .187.6 5.8 187.6 111.2
UItra EIectronics . . .1704.0 -12.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .233.9 2.1 237.1 109.3
BarcIays . . . . . . . . . . .265.6 9.1 344.0 237.3
HSBC HoIdings . . . . .629.1 10.7 730.9 596.2
LIoyds Banking Gr . . .50.8 1.8 77.6 43.4
RoyaI Bank of Sco . . .39.7 1.2 52.1 35.1
Standard Chartere .1672.0 34.0 1950.0 1519.0
AG Barr . . . . . . . . . .1315.0 -2.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .393.9 -0.6 518.0 364.5
Diageo . . . . . . . . . . .1282.0 9.0 1301.0 1033.0
SABMiIIer . . . . . . . . .2265.5 -6.0 2306.0 1827.0
AZ EIectronic Mat . . .310.7 3.7 338.1 248.5
Croda Internation . .1913.0 26.0 1962.0 971.0
EIementis . . . . . . . . . .172.5 0.0 173.1 61.0
Johnson Matthey . .2001.0 35.0 2119.0 1460.0
Victrex . . . . . . . . . . .1515.0 15.0 1530.0 1049.0
Price Chg High Low
BeIIway . . . . . . . . . . . .719.0 4.0 753.5 511.0
BerkeIey Group Ho .1289.0 1.0 1299.0 769.5
Bovis Homes Group .442.4 0.4 464.7 326.6
Persimmon . . . . . . . .482.5 0.2 502.5 336.5
Reckitt Benckiser . .3453.0 13.0 3648.0 3015.0
Redrow . . . . . . . . . . . .125.3 1.0 139.0 97.5
TayIor Wimpey . . . . . . .38.9 1.1 43.3 22.3
Bodycote . . . . . . . . . .379.7 7.8 397.7 185.0
Charter Internati . . . .816.5 24.5 853.5 538.5
Fenner . . . . . . . . . . . .407.0 5.5 407.8 192.2
IMI . . . . . . . . . . . . . . .1067.0 14.0 1112.0 657.5
MeIrose . . . . . . . . . . .360.4 -1.6 366.9 203.4
Northgate . . . . . . . . . .324.0 -3.9 346.7 168.5
Rotork . . . . . . . . . . .1686.0 0.0 1895.0 1254.0
Spirax-Sarco Engi . .2022.0 21.0 2063.0 1346.0
Weir Group . . . . . . .2141.0 14.0 2144.0 1024.0
Ferrexpo . . . . . . . . . . .479.7 10.1 499.0 235.0
TaIvivaara Mining . . .457.0 -8.0 622.0 359.6
BBAAviation . . . . . . .218.4 0.9 240.8 175.0
Stobart Group Ltd . . .145.0 0.0 163.6 124.1
AdmiraI Group . . . . .1673.0 12.0 1754.0 1390.0
Haynes PubIishing . .253.5 0.0 262.5 202.5
Huntsworth . . . . . . . . .74.0 1.0 86.0 65.0
Informa . . . . . . . . . . . .436.5 4.4 461.1 342.1
ITE Group . . . . . . . . . .212.8 -5.5 258.2 136.2
ITV . . . . . . . . . . . . . . . . .73.8 2.3 93.5 48.3
Johnston Press . . . . . . .5.6 0.3 20.0 4.4
MecomGroup . . . . . .219.0 3.3 310.0 162.0
Moneysupermarket. .103.8 2.1 109.3 64.6
Pearson . . . . . . . . . .1177.0 1.0 1188.0 864.0
Reed EIsevier . . . . . .573.0 7.0 590.5 490.2
Rightmove . . . . . . . .1207.0 15.0 1230.0 596.5
STV Group . . . . . . . . .127.0 0.0 168.0 66.0
Tarsus Group . . . . . .149.8 -0.3 165.0 112.5
Trinity Mirror . . . . . . . .42.3 0.8 124.3 40.8
United Business M . .557.0 0.5 725.0 483.8
UTV Media . . . . . . . . .129.3 5.0 151.0 106.0
WiImington Group . . .117.0 0.0 183.0 114.0
WPP . . . . . . . . . . . . . .775.0 -5.0 846.5 614.5
YeII Group . . . . . . . . . . .6.2 0.5 30.2 5.1
African Barrick G . . .420.3 6.0 638.0 393.5
AngIo American . . .3102.0 14.5 3437.0 2254.0
AngIo Pacific Gro . . .311.1 -8.2 369.3 249.0
Antofagasta . . . . . . .1420.0 26.0 1634.0 761.0
Aquarius PIatinum . .315.3 -2.7 419.0 227.1
BHP BiIIiton . . . . . . .2459.5 7.5 2631.5 1684.5
AmIin . . . . . . . . . . . . .404.8 -1.3 433.0 375.3
BeazIey . . . . . . . . . . . .127.1 2.1 139.2 109.1
CatIin Group Ltd. . . .406.1 4.0 421.4 325.0
Hiscox Ltd. . . . . . . . . .417.5 -1.4 424.7 336.1
Jardine LIoyd Tho . . .684.0 3.0 709.0 521.5
Lancashire HoIdin . . .652.5 0.0 660.0 494.5
RSA Insurance Gro . .135.8 0.9 143.5 117.9
Aviva . . . . . . . . . . . . . .446.3 7.3 477.9 305.8
LegaI & GeneraI G . . .120.0 1.8 123.8 75.6
OId MutuaI . . . . . . . . .135.5 2.1 145.2 102.0
Phoenix Group HoI . .610.0 0.5 758.0 584.5
PrudentiaI . . . . . . . . .733.5 13.5 777.0 489.2
ResoIution Ltd. . . . . .293.5 -0.5 316.1 211.3
St James's PIace . . . .353.5 13.5 360.4 204.2
Standard Life . . . . . . .213.6 3.1 244.7 173.0
4Imprint Group . . . . .270.0 1.5 295.0 195.0
Aegis Group . . . . . . .161.2 1.2 161.5 103.6
BIoomsbury PubIis . .128.5 -1.3 138.0 108.5
British Sky Broad . . .849.0 2.5 849.5 693.5
Centaur Media . . . . . . .47.0 0.5 73.0 44.8
Chime Communicati .277.0 0.0 298.5 158.0
Creston . . . . . . . . . . . .114.8 -0.1 121.0 78.5
DaiIy MaiI and Ge . . .464.4 0.0 594.5 433.0
Euromoney Institu . .653.0 0.0 736.0 575.5
Future . . . . . . . . . . . . . .17.3 -1.0 30.0 15.8
Centamin Egypt Lt . .126.2 0.2 197.1 114.5
Eurasian NaturaI . . .800.0 18.5 1125.0 695.5
FresniIIo . . . . . . . . . .1399.0 -3.0 1682.0 950.0
GemDiamonds Ltd. .233.0 3.7 306.0 186.3
HochschiId Mining . .451.6 -8.0 680.0 289.4
Kazakhmys . . . . . . .1399.0 19.0 1671.0 965.0
Kenmare Resources . .57.8 -1.2 59.3 11.5
Lonmin . . . . . . . . . . .1445.0 -8.0 1983.0 1355.0
New WorId Resourc .928.5 13.5 1060.0 861.5
PetropavIovsk . . . . . .748.0 18.0 1252.0 678.0
RandgoId Resource 5175.0 -80.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4532.0 41.5 4712.0 2880.5
Vedanta Resources 2095.0 1.0 2583.0 1832.0
Xstrata . . . . . . . . . . .1389.0 17.5 1550.0 845.8
Inmarsat . . . . . . . . . . .559.0 3.0 756.5 542.5
Vodafone Group . . . .164.1 -1.2 181.9 136.5
Genesis Emerging . .533.0 4.5 568.0 439.1
Afren . . . . . . . . . . . . . .159.1 1.2 171.2 79.2
BG Group . . . . . . . . .1427.5 13.5 1564.5 1002.0
BP . . . . . . . . . . . . . . . .459.7 1.0 509.0 322.0
Cairn Energy . . . . . . .418.5 3.7 493.2 366.0
EnQuest . . . . . . . . . . .123.7 0.7 158.5 96.0
Essar Energy . . . . . .416.0 6.9 589.5 385.7
ExiIIon Energy . . . . . .435.0 0.2 469.7 166.5
Heritage OiI . . . . . . . .230.0 10.6 486.0 210.0
JKX OiI & Gas . . . . . .265.0 0.0 335.1 228.0
Premier OiI . . . . . . . . .443.0 -3.6 535.0 306.5
RoyaI Dutch SheII . .2223.0 5.0 2326.5 1624.0
RoyaI Dutch SheII . .2238.0 14.0 2336.0 1554.0
SaIamander Energy .284.8 4.1 317.6 210.0
Soco Internationa . . .362.1 5.9 484.2 292.0
TuIIow OiI . . . . . . . . .1252.0 12.0 1493.0 991.5
Amec . . . . . . . . . . . .1103.0 15.0 1251.0 805.5
Hunting . . . . . . . . . . .773.5 8.5 817.0 439.4
John Wood Group . .662.0 14.5 706.0 310.9
LampreII . . . . . . . . . . .386.7 9.6 387.7 186.3
Petrofac Ltd. . . . . . .1527.0 13.0 1685.0 1141.0
Burberry Group . . . .1471.0 21.0 1472.0 739.5
PZ Cussons . . . . . . . .358.5 2.5 409.0 320.5
Supergroup . . . . . . . .858.5 -3.5 1820.0 720.0
AstraZeneca . . . . . .3124.0 16.0 3385.0 2801.5
BTG . . . . . . . . . . . . . .280.0 0.0 284.2 191.0
Genus . . . . . . . . . . . .1040.0 10.0 1046.0 704.5
GIaxoSmithKIine . . .1334.0 0.0 1348.5 1095.0
Hikma Pharmaceuti .771.0 11.0 900.0 687.5
Shire PIc . . . . . . . . . .1947.0 2.0 1962.0 1341.0
CapitaI & Countie . . .198.9 1.9 199.0 106.8
Daejan HoIdings . . .2760.0 -5.0 2919.0 2251.0
F&C CommerciaI Pr .106.2 0.1 108.0 88.0
Grainger . . . . . . . . . . .132.3 2.4 132.3 86.3
London & Stamford .133.8 3.4 140.0 110.3
SaviIIs . . . . . . . . . . . . .391.1 0.2 427.1 274.8
St. Modwen Proper . .190.0 5.0 192.0 135.4
UK CommerciaI Pro . .82.0 -0.2 85.5 74.3
Unite Group . . . . . . . .221.1 3.5 229.8 170.5
Big YeIIow Group . . .317.0 9.3 353.3 287.1
British Land Co . . . . .615.5 6.5 617.5 429.0
CapitaI Shopping . . .400.5 1.0 424.8 301.3
Derwent London . . .1846.0 20.0 1871.0 1208.0
Great PortIand Es . . .439.6 3.6 442.2 281.0
Hammerson . . . . . . . .485.7 4.3 486.3 336.3
Hansteen HoIdings . . .88.0 0.6 89.3 59.4
Land Securities G . . .866.5 14.0 870.0 545.0
SEGRO . . . . . . . . . . . .315.4 3.1 331.3 250.2
Shaftesbury . . . . . . . .532.0 4.0 539.0 349.3
Autonomy Corporat 1703.0 -4.0 1915.0 1271.0
Aveva Group . . . . . .1742.0 29.0 1772.0 1141.0
Computacenter . . . . .480.0 0.0 489.7 260.0
Fidessa Group . . . . .1969.0 32.0 1982.0 1300.0
Invensys . . . . . . . . . . .323.7 1.8 364.3 230.2
Kofax . . . . . . . . . . . . .445.0 2.0 535.0 231.0
Logica . . . . . . . . . . . .134.3 0.3 147.2 101.7
Micro Focus Inter . . .339.5 4.2 452.4 276.0
Misys . . . . . . . . . . . . .420.2 0.2 421.2 232.8
Sage Group . . . . . . . .290.4 1.5 302.0 222.7
SDL . . . . . . . . . . . . . . .693.5 -4.5 711.5 450.0
TeIecity Group . . . . . .557.0 3.0 563.5 377.0
Aggreko . . . . . . . . . .1944.0 15.0 1945.0 1346.0
Ashtead Group . . . . .173.2 3.2 207.9 77.0
Atkins (WS) . . . . . . . .745.5 -2.5 820.0 650.0
Babcock Internati . . .720.5 8.5 723.0 492.8
Berendsen . . . . . . . . .535.0 -10.0 549.5 360.2
BunzI . . . . . . . . . . . . .801.0 21.0 848.5 658.0
Capita Group . . . . . . .717.0 1.5 794.5 635.5
CariIIion . . . . . . . . . . .379.3 3.2 403.2 291.2
De La Rue . . . . . . . . .762.5 -2.0 952.5 549.5
EIectrocomponents .273.9 1.3 294.9 205.7
Experian . . . . . . . . . . .801.5 8.0 819.0 578.0
FiItrona PLC . . . . . . . .369.4 1.8 385.5 209.2
G4S . . . . . . . . . . . . . . .280.4 0.6 291.0 237.7
Hays . . . . . . . . . . . . . .104.6 1.6 133.6 88.4
Homeserve . . . . . . . .500.0 -3.0 532.0 399.2
Howden Joinery Gr . .107.8 0.8 127.5 57.0
Intertek Group . . . . .1945.0 -28.0 2148.0 1437.0
MichaeI Page Inte . . .551.0 16.0 567.0 349.4
Mitie Group . . . . . . . .236.7 -1.2 242.5 188.7
Premier FarneII . . . . .247.6 -1.4 308.8 210.2
Regus . . . . . . . . . . . . .110.9 0.2 119.0 66.1
RentokiI InitiaI . . . . . . .94.9 -0.2 114.0 84.3
RPS Group . . . . . . . . .245.0 -0.2 251.4 169.8
Serco Group . . . . . . .548.5 -4.0 633.0 529.5
Shanks Group . . . . . .125.8 -2.0 130.9 96.5
SIG . . . . . . . . . . . . . . .141.8 5.3 153.5 90.7
SThree . . . . . . . . . . . .411.2 14.2 447.6 231.1
Travis Perkins . . . . . .999.5 10.0 1127.0 709.0
WoIseIey . . . . . . . . .2064.0 32.0 2261.0 1223.0
ARM HoIdings . . . . . .593.5 5.5 651.0 270.5
CSR . . . . . . . . . . . . . .321.6 12.0 447.0 280.9
Imagination Techn . .397.8 20.7 502.0 273.1
Pace . . . . . . . . . . . . . .107.3 0.8 231.8 93.0
Spirent Communica .149.4 0.4 160.3 108.5
British American . .2754.0 23.0 2762.5 2091.0
ImperiaI Tobacco . .2117.0 46.0 2231.0 1784.0
Avis Europe . . . . . . . .310.5 0.2 311.1 184.0
Betfair Group . . . . . . .770.5 14.0 1550.0 726.5
Bwin.party Digita . . .151.0 1.0 309.5 127.0
CarnivaI . . . . . . . . . .2457.0 44.0 3153.0 2037.0
Compass Group . . . .605.0 4.0 608.5 501.0
Domino's Pizza UK . .414.9 11.2 586.0 377.0
easyJet . . . . . . . . . . . .361.5 2.4 479.0 322.3
Enterprise Inns . . . . . .65.7 1.7 122.7 64.1
FirstGroup . . . . . . . . .343.0 2.1 412.6 311.3
Go-Ahead Group . . .1586.0 7.0 1594.0 1042.0
Greene King . . . . . . .497.9 10.5 518.0 395.0
InterContinentaI . . .1275.0 0.0 1435.0 982.0
InternationaI Con . . .254.5 0.8 305.0 186.5
JD Wetherspoon . . . .442.3 11.0 468.3 386.5
Ladbrokes . . . . . . . . .152.8 0.4 153.9 122.7
Marston's . . . . . . . . . .103.0 1.2 117.1 90.4
MiIIennium& Copt . .517.0 8.5 600.5 392.0
MitcheIIs & ButIe . . . .317.1 2.1 361.0 275.6
NationaI Express . . .255.8 2.6 270.2 213.4
Punch Taverns . . . . . .73.0 1.2 90.4 58.1
Rank Group . . . . . . . .149.5 0.0 153.0 94.8
Restaurant Group . . .296.0 2.0 335.0 208.2
Stagecoach Group . .268.5 13.2 270.1 160.7
Thomas Cook Group 134.5 1.5 204.8 125.7
TUI TraveI . . . . . . . . . .226.8 2.4 271.9 190.0
Whitbread . . . . . . . .1626.0 11.0 1887.0 1361.0
WiIIiamHiII . . . . . . . . .229.6 1.2 230.1 155.5
Abcam . . . . . . . . . . . .438.0 21.3 440.0 244.0
AIbemarIe & Bond . .375.5 3.5 375.5 218.0
Amerisur Resource . .25.3 1.0 29.0 11.5
Andor TechnoIogy . .640.0 -11.5 659.0 260.0
ArchipeIago Resou . . .57.0 -4.8 66.8 32.3
ASOS . . . . . . . . . . . .2356.0 -44.0 2468.0 840.0
AureIian OiI & Ga . . . .57.3 0.3 92.0 35.8
Avanti Communicat .385.5 14.5 735.0 339.0
Avocet Mining . . . . . .215.0 -0.3 253.5 112.0
BIinkx . . . . . . . . . . . . .120.3 0.3 148.8 33.5
Borders & Souther . . .51.8 1.0 93.0 49.5
BowLeven . . . . . . . . .341.0 5.8 398.0 126.3
Brooks MacdonaId 1300.0 0.0 1372.5 767.5
CaIedon Resources .111.3 0.3 111.5 23.3
Conygar Investmen .109.5 0.0 120.0 101.3
Cove Energy . . . . . . . .98.5 1.3 112.8 47.5
Daisy Group . . . . . . .120.0 -7.0 128.0 86.0
EMIS Group . . . . . . . .520.0 2.5 555.5 303.5
Encore OiI . . . . . . . . . .63.5 0.3 151.5 49.0
Faroe PetroIeum . . . .162.5 1.5 218.3 115.0
GuIfsands PetroIe . . .213.0 1.5 401.5 207.3
GWPharmaceuticaI .130.0 6.0 130.0 83.0
Hamworthy . . . . . . . .653.5 3.5 684.5 297.5
Hargreaves Servic .1046.0 0.0 1053.0 568.0
HeaIthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic .1129.0 71.0 1129.0 710.0
ImpeIIamGroup . . . .362.6 0.1 387.5 84.0
James HaIstead . . . . .485.9 7.5 488.0 306.0
KaIahari MineraIs . . .235.0 1.0 301.0 142.0
London Mining . . . . .367.0 9.3 436.5 211.0
Lupus CapitaI . . . . . .115.5 2.5 150.0 72.0
M. P. Evans Group . .460.0 22.5 500.5 334.0
Majestic Wine . . . . . .503.5 13.5 507.6 295.0
May Gurney Integr . .273.8 -3.8 285.0 177.0
Monitise . . . . . . . . . . . .31.3 1.3 32.0 17.8
MuIberry Group . . . .1642.0 2.0 1653.3 237.5
Nanoco Group . . . . . . .79.0 -3.0 115.8 68.0
NauticaI PetroIeu . . .316.5 3.5 547.0 128.0
NichoIs . . . . . . . . . . . .558.0 10.8 578.0 392.5
Numis Corporation . .100.3 4.3 146.5 94.0
Pan African Resou . . .11.0 0.3 12.3 5.9
Patagonia GoId . . . . . .54.3 -0.5 59.3 12.5
Prezzo . . . . . . . . . . . . .67.5 1.0 71.5 37.8
Pursuit Dynamics . . .301.0 -8.8 700.0 196.0
Rockhopper ExpIor .269.8 0.8 510.0 202.5
RWS HoIdings . . . . . .439.0 -10.5 472.0 239.0
Songbird Estates . . .151.8 -1.8 160.3 135.0
VaIiant PetroIeum . . .595.0 5.0 761.5 504.0
Young & Co's Brew . .655.0 0.0 685.0 510.0
TuIIett Prebon . . . . . .380.0 7.3
QinetiQ Group . . . . . .129.1 7.0
InternationaI Pers . . .388.8 5.7
Imagination Techno .397.8 5.5
Stagecoach Group . .268.5 5.2
ICAP . . . . . . . . . . . . . .497.2 5.1
Heritage OiI . . . . . . . .230.0 4.8
Morgan CrucibIe Co .321.4 4.4
St James's PIace . . . .353.5 4.0
SIG . . . . . . . . . . . . . . .141.8 3.9
Premier Foods . . . . . . .17.1 -10.2
London Stock Excha1033.0 -2.6
AngIo Pacific Grou . .311.1 -2.6
ITE Group . . . . . . . . .212.8 -2.5
Carpetright . . . . . . . .637.0 -2.2
Kenmare Resources . .57.8 -2.0
Berendsen . . . . . . . . .535.0 -1.8
HochschiId Mining . .451.6 -1.7
TaIvivaara Mining . . .457.0 -1.7
Shanks Group . . . . . .125.8 -1.6
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
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ELECTRONIC & ELECTRICAL EQ.
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Tsy 3.250 11 . . . . .101.19 -0.02 103.7 101.2
Tsy 9.000 11 . . . . .100.25 -0.03 108.6 100.3
Tsy 2.500 11 . . . . .307.27 0.00 310.0 307.3
Tsy 5.250 12 . . . .104.23 -0.05 108.4 104.2
Tsy 9.000 12 . . . .108.98 0.00 116.5 107.9
Tsy 5.000 12 . . . .102.97 -0.05 107.1 103.0
Tsy 4.500 13 . . . .106.14 -0.05 109.2 105.8
Tsy 2.500 13 . . . .286.88 -0.03 287.7 274.9
Tsy 8.000 13 . . . . .115.54 -0.08 121.3 115.5
Tsy 5.000 14 . . . . .111.05 -0.14 114.1 109.2
Tsy 7.750 15 . . . .103.85 -0.13 110.7 76.0
Tsy 8.000 15 . . . .125.99 -0.17 131.6 123.7
Tsy 4.750 15 . . . . .111.67 -0.15 114.7 108.6
Tsy 4.000 16 . . . .108.75 -0.19 111.4 104.9
Tsy 2.500 16 . . . .330.48 -0.10 334.1 304.4
Tsy 8.750 17 . . . .135.30 -0.60 142.2 132.9
Tsy 12.000 17 . . .126.34 0.00 185.9 126.0
Tsy 1.250 17 . . . . .110.55 -0.24 112.1 104.9
Tsy 5.000 18 . . . . .114.22 -0.28 117.6 109.7
Tsy 4.500 19 . . . . .110.37 -0.26 113.8 105.4
Tsy 3.750 19 . . . .104.47 -0.31 107.7 99.4
Tsy 4.750 20 . . . . .111.38 -0.39 115.9 106.6
Tsy 2.500 20 . . . .334.97 -0.42 341.2 303.8
Tsy 8.000 21 . . . .139.47 -0.49 147.1 133.8
Tsy 1.875 22 . . . . .114.85 -0.35 117.8 108.5
Tsy 4.000 22 . . . .103.39 -0.38 108.4 99.0
Tsy 2.500 24 . . . .292.39 -0.24 298.9 262.1
Tsy 5.000 25 . . . . .111.58 -0.37 118.5 107.4
Tsy 1.250 27 . . . .108.39 -0.10 111.2 100.5
Tsy 4.250 27 . . . .101.80 -0.27 108.8 97.9
Tsy 6.000 28 . . . .123.76 -0.24 132.7 119.5
Tsy 4.750 30 . . . .107.43 -0.21 115.0 103.0
Tsy 4.125 30 . . . .279.63 -0.06 283.9 248.7
Tsy 4.250 32 . . . .100.44 -0.22 107.8 96.0
Tsy 4.250 36 . . . . .99.62 -0.20 107.4 95.0
Tsy 4.750 38 . . . .108.00 -0.22 116.5 102.8
Tsy 4.500 42 . . . .104.37 0.00 112.8 98.9
% %
Wealth Management | Markets
18 CITYA.M. 4 JULY 2011
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T
HE Eternal City has had a 21st-centu-
ry makeover. In the last few years,
daring new architect-designed
buildings have been springing up,
while workmen sing along to Tony
Bennett: The glory that was Rome/Is of
another day. The Auditorium Parco della
Musica was created by Renzo Piano, and
took 12 years to build. The American archi-
tect Richard Meier has contributed two
major buildings: the Ara Pacis Museum,
which became in 2006 the first new build-
ing to open in the historic city in 70 years,
and the curved concrete Jubilee Church to
the east of the city. Old buildings have
been tarted up: the 19th century Palazzo
delle Exposizioni has been given a new
glass and steel extension, and the Museum
of Contemporary Art of Rome has been
housed in an old brewery.
But the leader of the pack is Zaha
Hadids stunning Maxxi museum. The
name itself is a delightful play on old and
new, using Roman numerals to spell out
Museum of Art of the 21st Century.
Hadid makes concrete seem organic, all
sinuous curves on the outside, with vertig-
inous staircases and dizzying split levels
on the inside like some Escher painting. It
opened in 2010, and in October it won the
Stirling Prize for the finest building in
Europe designed by a British architect.
Deservedly so. But can it really compete
with Romes established wonders? I hadnt
visited the city for a couple of years, and was
grateful for an excuse to find out. But wan-
dering and wondering round Hadids
extraordinary creation shortly before
Christmas, it seemed all style and no sub-
stance. Wheres the great art to go inside it?
There was a fun sculpture made of traf-
fic cones stuck together. In another room,
a pair of giant legs that disappear into the
ceiling. A video installation by Bill Viola,
two clothed dummies by Yinka
Shonibare, a massive and yet minor PVC
sculpture by Anish Kapoor. And the rest
was blah. The collection changed in
February, so you may have better luck,
but on this evidence I doubt it.
Still, for those visiting Rome this sum-
mer, theres an important exhibition of
100 works by Michelangelo Pistoletto, dar-
ling of the Arte Povera movement in the
60s. That runs until 15 August.
But while Romes newest marvel may
have disappointed, thrown back on
Romes longer-lived wonders for a second
time, I discovered why they call it the
Eternal City. You can go again and again,
and discover something new.
HOTEL WITH A VIEW
I stayed in the Rome Cavalieri, which is
offering privileged access and passes to
the Maxxi. It stands on a hilltop overlook-
ing the city (a free shuttle bus leaves
hourly), and though it may look from the
outside like a concrete council estate, on
the inside it is the epitome of luxury. It
has a three-Michelin-starred restaurant on
the top floor (book several months in
advance to avoid disappointment), and its
owner is a wealthy art collector who has
left a thousand pieces, both furniture and
paintings, dotted around the place.
Borrow an iPod from the concierge and
take the walking tour. Its unintentionally
hilarious in parts -- the American narra-
tors Italian accent was evidently so offen-
sive to the Roman ear that the titles of
paintings have been overdubbed by
another voice but good at drawing the
finest works to your attention.
But the best thing about the Cavalieri is
the view, ah, the view! Just sitting down to
breakfast is inspiring. St Peters is just
there, to the right, with dozens of smaller
domes sprouting from the mass of build-
ings all over the city, as though its great
dome were the bell of some curious stone
flower which had pollinated and spread
its seeds across the capital. The rooms at
the Cavalieri have their own balconies,
and mirrors artfully placed to reflect St
Peters right into your bedroom.
It sets you up well for a day of wander-
ing. Because the real object of Rome is,
well, to roam. Round every corner is some
new square, or fountain, or church, or
great stone edifice with gigantic pillars.
And even the monuments amply repay a
second visit.
At the Colosseum, I read how they used
to flood the arena floor and stage elabo-
rate naval battles. At the Pantheon, which
has a large hole in the top of its perfectly
spherical dome as though an eye to God,
it began to snow only the second snow
here in 20 years -- the flakes falling
through the opening to the stone floor
like feathers shaken from the wings of
angels.
Perhaps the greatest revelation was the
Vatican Museum. On my last visit Id just
crowded in, buffeted and bewildered, not
quite knowing what to look at outside of
the Sistine Chapel itself. This time we
were accompanied by a guide, a talented
artist in her own right, who brought these
millennia-old treasures freshly to life.
We stood before Michelangelos ineffa-
bly moving Pieta of the Virgin Mary with
the crucified Christ, a sculpture carved
from a single block of Carrara marble
when the great artist was just 23. Our
guide pointed out Michelangelos trick
with scale Christ is much smaller than
the mother whose lap he is stretched out
on, so that the scene suggests his birth as
well as his death. And her expression and
gestures are sad but accepting, as though
she knew from birth that this sacrifice
was ordained.
Then she pointed out a real curio: the
only Leonardo da Vinci in Rome, an unfin-
ished and damaged work. You can see the
restored square where the face had been
cut out of the painting, and made into a
cushion for a shoe-maker to park his back-
side on. As Jim Royle might say,
Leonardo, my arse!
SISTINE CHAPEL
And finally, the piece de resistance: the
Sistine Chapel itself. This, too, has had a
controversial makeover in the last decade,
but only to restore it to its former colour-
ful glory. Michelangelo initially refused
the commission on the grounds that he
was a sculptor, not a painter. Even so, he
finished the ceiling without any helpers
in just four years, inventing trompe
loeuil into the bargain the device
whereby painted statues and porticoes
are made to look 3D.
The side wall of the Last Judgment was
commissioned 20 years later, when
Michelangelo was 50, but he had lost
none of his youthful fire. He painted the
figure of Minos, who in Dantes Inferno
decides in which Circle of Hell to confine
sinners, with the face of a prominent
Cardinal who had annoyed him: a serpent
is wrapped round his legs, biting him in
the balls for all eternity.
The tour operator Italy With Us has
wangled an exclusive licence to show visi-
tors round in the early morning for 50 a
head, before the place opens to the gener-
al public. To see Michelangelos greatest
masterpiece unsullied by the heedless
hordes is worth travelling to Rome for
alone. Next to those eternal glories, the
Maxxi museum is a load of Pollocks.
For Vatican tours including exclusive Sistine
Chapel access, contact Italy With Us, Via
Vespasiano 16-18, Rome; (+39) 06 3972 3051,
www.italywithus.com. Citalia is the UKs
leading specialist Italian tour operator: 0845
415 1987, www.citalia.co.uk. Rooms at the
Cavalieri start at 355 euros: (+39) 06 35092040,
www.romecavalieri.com
Above left, the Maxxi
museum, designed by
Zaha Hadid. Top right,
the Sisitine Chapel.
Bottom right,
Michelangelos Pieta.
Lifestyle | Travel
MARCUS WAREINGS
THE GILBERT SCOTT
RESTAURANT REVIEWED IN
TOMORROWS CITY A.M.
19
Romes new modern art museum
is dramatic, but not compared to
Michelangelo, says Dominic Wells
Ancient and modern wonders
F
estivals aint what they used to
be. Back in the day, your parents
would smear their naked bodies
with healing mud and take so
much acid their eyes melted. Now, in a
resounding victory for progress, people
can huddle in their tents, feverishly
watching the events on the blinking
screen of an iPhone.
Even in a muddy field in the middle
of god-knows-where, mobile technolo-
gy is doing away lifes mundane irrita-
tions, such as decision making and
independent thought.
The new wave of festival apps are a
stroke of genius, to be held alongside
the wheel and the Super Nintendo
Entertainment System. Orange designed one for Glastonbury and Vodafone did
something similar for the Isle of Wight and last weekends Wireless in Hyde
Park. The free downloads show you exactly what time and on which stage all
the acts are playing, meaning you dont have to pay 6 for a programme that is
prone to disintegrating in the rain. You can then choose who you want to watch
and put them in a personalised schedule, along with a reminder of when you
have to set off to see them. But the best part is, you can then open up a map of
the site, which uses GPS to tell you exactly where youre standing and which
direction you should go in. All thats missing are giant arrows showing you
exactly where you can find your arse and your elbow.
After using them for five minutes, it makes you wonder how people survived
at festivals before apps were invented. Presumably they just wandered mindless-
ly from field to field for five days, weeping quietly into their falafels.
By the next Glastonbury in 2013, Im hoping for an app thats hard-wired into
the mind of Fearne Cotton, akin to the experiment where scientists removed the
top of a cats skull and attached electrodes to its brain, so we can watch the
backstage area through her cold, dead eyes. By then the festival will be renamed
App-stonbury. It will be the best weekend ever.
Of course, these apps rely on keeping your phone charged. Enter Orange with
its t-shirt that converts sound into electricity. Using the same technology as a
speaker but in reverse, it absorbs vibrations through a silver panel on the wear-
ers stomach (which makes them look a bit like a sad Teletubby). In 2010,
Orange showcased a pair of wellies that convert the energy you use wading
through mud into electricity. This strikes me as a better idea, although I didnt
spot a single person wearing them this year, which is the festival equivalent of
leaving without any money in the Dragons Den.
Not to be outdone by the milling ant colony of asinine
festival-goers operating several intellectual and spiritu-
al leagues below him, Bono literally spoke to a space-
man during his Glastonbury set. Read that sentence
back. Say it out loud. He cut to a live link-up with a
space station, where a real life astronaut quoted
David Bowie lyrics at him. If I hadnt watched it later
on telly, Id probably have assumed Id dreamt it. For
his next trick I would like to see Bono play the first
ever set on the moon, hooked into a computer that will
cut his oxygen supply if he plays anything from after
1987.
All of this upsets the purists, who think festivals
should consist of three hippies dancing around a
bonfire with a kazoo. Probably. I wouldnt
know. I didnt speak to any of them. I was
too busy looking at my phone. Technology
is the future of festivals. If you dont like
it, start another one. Have it in your back
garden. Nobody will want to go anyway.
Lifestyle | Travel and Gadgets
20 CITYA.M. 4 JULY 2011
I
T is 5.45am waking hour on safari.
Close to the tent, there are groups
of feeding buffalo and wildebeests
and slowly loping giraffes. Behind
them, there is a spectacular view of the
Kent coast and English Channel with
France in the distance.
This is what it is like to go on safari,
English-style. And despite driving only
an hour down the M20, instead of ven-
turing into the heart of Africa, the
panorama is magnificent.
For a credit crunch version of the
African dream, the overnight stay at
Livingstone Safari Lodge at Port Lympne
Wild Animal and Safari Park in Kent is a
summer treat. After all, why pay thou-
sands to travel across the globe, when you
can sample it for 115, and even take your
(nine-year-old plus) children?
We dressed quickly, sorry to be leaving
the cosy warmth of our luxury tents. But
with the sun still rising over the Romney
marshes, we were in for a treat as we
hopped on board the safari truck and
drove slowly past grazing zebra, impala
and ostrich. Our Zimbabwe-born guide
Warren Cathro, who has spent 35 years
working as a ranger and conservationist,
gave a running commentary as hungry
giraffes literally poked their heads in the
jeep to wolf down slices of bread.
Then it was back to the warm, homely
Lapa, the African-style meeting room
near our tents, for a bang-up bacon and
egg breakfast. Some things, after all, real-
ly are better the English way.
We had been met at 3.30pm the day
before at the park entrance by Warren,
who greeted us with a welcome drink
and an impassioned speech about the
parks work. The fact the animals are
thriving here in the wilds of Kent is
down to the late John Aspinall, who set
up this 600-acre estate as a haven for
endangered animals. Today, more than
1,000 animals roam free and visitors can
also see caged Siberian and Indian tigers,
Barbary lions, small cats, monkeys and
the worlds largest gorilla enclosure.
Chugging off in the safari jeep, we
soon came across the black rhino, an ani-
mal thats almost extinct thanks to a
black market trade which sells their
horns for up to 30,000.
Then we took time to gaze at the ele-
phants before spending a couple of
hours lumbering through farmland as
Warren pointed out the many different
breeds of animals, and even the mis-
takes that had left one group all white
a freak of nature.
By early evening we had reached our
safari accommodation at the top of the
hill a row of luxury tents built on
wooden decks. Its more glamping than
camping, with comfortable twin beds,
fluffy robes and even a desk in case you
feel like writing a postcard about your
wilderness adventure.
And dinner was hardly campfire cook-
ing either though the delicious African
themed buffet did include steaks cooked
at the indoor wood fire.
After a couple of wines, all that was
left to do was hear more from Warren
about his twin passions conservation
and sport. He didnt seem so thrilled
when talk turned to what a thrashing
the Springboks have taken in rugby late-
ly. Perhaps the 5.45am wake-up was his
revenge.
Livingstone Lodge overnight safari at Port
Lympne, near Hythe, runs from March 31 to
mid October, for groups of up to 18. Participants
are free to tour the rest of Port Lympne at their
leisure when the safari ends mid-morning. Call
01303 234190 for further details.
OUT OF AFRICA
Coming soon: the
Fearne Cotton app
A couple of giraffes
(above) take a long
look at the English
countryside, and dont
bat an eyelid in the
process. Welcome to a
very British safari
adventure.
Jenny Forsyth takes the family to a luxury safari camp
with a difference its only an hour outside London
TRAVEL NOTES | by Timothy Barber
...AND THE REAL, AFRICAN VERSION
For those fancying a taste of the real
safari life on the African plains,
Sanctuary Zebra Plains is a new lux-
ury walking safari camp in
Zambias South Luangwa region.
Rather than heading out in a
jeep to snap animals from a dis-
tance, you set out on foot with
Garth Hovell, one of Zambias
most renowned guides, over
South Luangwas long, lazy
plains, which include the largest
hippo population in the world.
The camp has just four tents for
up to six people, all with en suite
facilities. Book a stay for two and
one of you can go half price, a saving of
513. www.sanctuaryretreats.com
COOK WITH DUCASSE IN SHANGHAI
Foodies take note: Masters of Food & Wine is
an event held each year by luxury hotel
operator Park Hyatt that brings togeth-
er renowned chefs and sommeliers.
This year the event comes to China
for the first time, at the Park Hyatt
Shangai in November. Alain
Ducasse and Gerard Basset, the
worlds most famous chef and
sommelier respectively, will be
joined by various regional Chinese
master chefs for workshops, tast-
ing sessions, Shanghai market
excursions, Chinese floral arranging
and, of course, dinners. 22-26 Nov,
Park Hyatt Shanghai. Rooms from
CHY2,500 (240) per night. For more info
see www.parkhyattshanghai.com
HP TouchPad (399)
HPs new Web OS tablet finally launched this week. Youll
probably have realised this already after seeing the non-
existant queues of people who camped outside Dixons
waiting to get their hands on one. If this was the first
tablet to launch it would be something pleasant enough,
the gadget equivalent of a nice cup of tea. But, in case
you havent noticed, there are a few tablets out there
already. And most of them are better than this. Even if
you hate Apple, youd be wiser picking up a Galaxy Tab
or a Motorola Xoom running Android.
GEEK SPEAK
@steve_dinneen
Logitech Wireless Keyboard (50)
Logitechs wireless keyboard looks like a giant version of
one of the calculators you used to take to school as a kid.
It looks vast on your desk, with big, bulbous black keys
(although it is pleasingly thin). The firm says that once
charged, its battery can last for up to three months,
which is useful for all the typing in the dark you get up
to. Its a smart enough piece of kit but something about
the feel of the keys make it seem cheap which its not.
Annoyingly it doesnt work with Macs.
T
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NEWTRICKS
BBC1, 9PM
New series. The veteran detectives
return to investigate a fresh batch
of unsolved crimes, beginning with
the murder of a palaeontologist.
CORONATION STREET
ITV1, 7.30PM
Fiz is arrested on suspicion of murder.
Meanwhile, Stella senses the damage
she is doing to Leannes family and her
own, and prepares to leave.
EMBARRASSING BODIES...
CHANNEL 4, 9PM
Doctors Christian Jessen, Dawn
Harper and Pixie McKenna travel
around the UK giving advice to
teenagers with health concerns.
BBC1
SKY SPORTS 1
5.30pmLive Twenty20 Cup
Cricket 9pmAshes Memories
9.30pmFootballs Greatest
10pmTime of Our Lives 11pm
Twenty20 Cup Cricket 1am
Soccer AM: The Best Bits 2am
FIFA 2.30amSports Unlimited
3.30amWatersports World
4.30amMax Power
5.30am-6amFIFA
SKY SPORTS 2
6.30pmNASCAR 7.30pmLive
Elite League Speedway 9.30pm
NASCAR 10.30pmBoots n All
11.30pmElite League Speedway
1.30amEuropean Tour Golf
2.30amPGA Tour Golf
3.30am-5amWonderful World
of Golf
SKY SPORTS 3
7pmLive Winning Post 9pm
Equestrianism11pmWWE:
Late Night Bottom Line
12amWWE: Afterburn 1am
WWE: NXT 2am-4.15amLive
WWE: Late Night Raw
BRITISH EUROSPORT
6.35pmTriathlon 7.05pm
Cycling 8.35pmWorld Cup
Show8.50pmLive Under-17s
World Cup Football 11pm
Cycling 12.30am-12.45am
World Cup Show
ESPN
6.15pmMajor League Soccer
8pmNFL: Top 10 11pmESPN
Kicks: Extra 11.15pmLive Copa
America Football 1.15amESPN
Kicks: Extra 1.45amLive Copa
America Football 3.45amESPN
Kicks: Extra 4amFIA GT1 World
Championship Review5amESPN
Game of the Week 5.30am-6am
ESPN Press Pass
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmDating in the
Dark 9pmBritain & Irelands
Next Top Model 10.05pmKatie
Price: Standing Up for Harvey
11.05pmCriminal Minds 12am
CSI: Crime Scene Investigation
1.50amGhost Whisperer
2.40amCharmed 4.20am
Nothing to Declare 5.10am-6am
Maury
BBC THREE
7pmDoctor Who 7.50pmDoctor
Who Confidential 8pmDont Tell
the Bride 9pmKill It, Cut It, Use
It 10pmEastEnders 10.30pm
Worlds Craziest Fools 11pm
Family Guy 11.45pmDont Tell
the Bride 12.45amKids Behind
Bars 1.45amWorlds Craziest
Fools 2.15amKill It, Cut It, Use
It 3.15amDoctor Who 4.05am
Doctor Who Confidential
4.15am-5.15amKids Behind
Bars
E4
7pmHollyoaks 7.30pmFriends
9pmOne Tree Hill 10pmDirty,
Sexy Things 11pmTool Academy
12.10amMy Name Is Earl
1.15amGlee 2amTool Academy
2.55amBeing Erica 3.40am
Heartland 4.25amReaper
5.05am-6amSwitched
HISTORY
7pmAmerica: The Story of the
US 8pmPawn Stars 10pm
American Pickers 12amPawn
Stars 1amAmerican Pickers 3am
America: The Story of the US
4amHow the Earth Was Made
5am-6amIce Road Truckers
DISCOVERY
7pmMythbusters 9pmBear
Grylls: Born Survivor 10pm
Tornado Road 11pmJFK: The
Ruby Connection 12amBear
Grylls: Born Survivor 2am
Tornado Road 3amDeadliest
Catch 3.50amMassive Nature
4.40amThrough the Wormhole
with Morgan Freeman
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm
Quints By Surprise 10pm999
Emergency 11pmA&E 12am
Quints By Surprise 1am999
Emergency 2amA&E 3amLittle
People, Big World 4amA Baby
Story 5am-6amBringing
Home Baby
SKY1
8pmRoad Wars 9pmCop Squad
10pmSpartacus: Blood and Sand
11.10pmWall of Fame 11.40pm
Brit Cops: Zero Tolerance
12.35amDanny Dyers Deadliest
Men 1.25amStargate Atlantis
2.55amThe Top Ten Show
3.05amRoss Kemp on Gangs
3.55amOops TV 4.20amAirline
5.10am-6amSell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmFake Britain: News
8pmEastEnders
8.30pmWhy Hate Junk Mail?
Panorama
9pmCHOICE New Tricks
10pmBBC News 10.25pm
Regional News 10.35pmA
Question of Sport 11.05pmIn with
the Flynns 11.35pmThe Graham
Norton Show12.25amSign Zone:
Business Nightmares with Evan
Davis 1.25amLuther 2.25am
Britains Secret Seas 3.25am
Animal 24:7 4.10amAn Island
Parish 4.40am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys
7pmThe Truth About Wildlife
7.30pmHampton Court Palace
Flower Show 2011
8pmUniversity Challenge
8.30pmAntiques Master
9pmMade In Britain
10pmJames Mays Things You
Need to Know
10.30pmNewsnight: Weather
11.35pmThe Many Faces of
Michael Caine
12.35amThe Tudors
1.30amBBC News 4.40am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCHOICE Coronation
Street
8pmThe Unforgettable Frankie
Howerd
8.30pmCoronation Street
9pmBabies Behind Bars
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMRambo: First Blood
Part II 1985. 12.25amThe Zone;
ITV News Headlines 2.25am
Nightwatch 3.20amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pmChannel 4 Presents
David Clarke 2012
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1 2 3 4 5 6
7
8 9
10
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14 15
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21 22
26 23
15 10
16 23
4 21
38 5
10 9
13 37
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11 10
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6 30
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27
7
29
6
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
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.
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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 Violent impact (5)
3 Bid (5)
7 Threesome (4)
8 Twin brother of
Romulus (5)
9 Perpendicular (5)
11 Town between
Farnborough and
Andover (11)
14 Coastal town in
Dorset (11)
16 Dig into (5)
19 Excessive interest (5)
20 Thin strand of
metal (4)
21 Basic unit of currency
in many Arabian
countries (5)
22 Coupling (5)
DOWN
1 Tree with edible pods
used as a chocolate
substitute (5)
2 Country, capital
Riyadh (5,6)
3 Metal-bearing
mineral (3)
4 Child of an aunt
or uncle (5,6)
5 Adversary (3)
6 Bind again or anew (5)
10 Heron (5)
12 Bustle (3)
13 Case for containing
a set of articles (3)
14 Animal with two feet (5)
15 Composer Joseph
___ (1732-1809) (5)
17 Be in possession of (3)
18 Make a mistake (3)
L
S
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Y N
T
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4

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S A L O N C R O S S
C C H P P
R I S E G R A P P A
U T A T I O C
B L I N I S E R G E
P R A T T
A B U S E E L U D E
R L L N A N M
E N A M E L S E E M
T T S S E
E V E N S B O A S T
9 8 7 9 3 8
5 4 6 1 9 8 2 7 3
3 8 4 3 1 6 2
1 5 8 5 5 1
2 6 8 9 7 5 9 6
2 7 8 1
9 3 6 1 4 3 5 2
5 2 7 9 9 8
7 4 9 8 6 8 3
8 5 4 9 3 2 6 7 1
1 2 6 1 2 4
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
HAIRSTYLE
Lifestyle | TV&Games
21 CITYA.M. 4 JULY 2011
Sport
22
ENGLAND captain Alastair Cook has
ordered his batsmen to improve in
Wednesdays must-win fourth one-
day international after Sri Lanka took
a 2-1 lead in the series at Lords yester-
day.
Cook smashed 119 but received
scant assistance from his top order
colleagues as England reached 246-7
a total the tourists surpassed with six
wickets and 10 balls to spare.
Mahela Jayawardene followed his
ton at Headingley on Friday with 79
off 77 balls before Dinesh Chandimal
wrapped up back-to-back wins for
Sri Lanka with 105 not out.
We will review this game,
where we think we can get better,
said Cook. Our batting line-up
hasnt scored enough runs in
the last two games. If we
want to win games were
going to have to fire more
consistently.
But Cook (right) resisted
suggestions a top three
including both him and
Jonathan Trott, who made
just two runs, might be too
conservative for shorter
forms of the game. Trottys
had a quiet couple of games, but
he averages 50 and strikes at 80 at
No3, which are pretty good stats,
he said. Well all take collective
responsibility in the batting line-
up for not scoring enough runs.
Trott, Craig Kieswetter (three)
and Eoin Morgan (four) could
only manage single fig-
ures on a batting-
friendly track.
England need to
win the midweek day-nighter at
Trent Bridge if they are to avoid
defeat in the five-match series,
with the final match taking place
at Old Trafford on Saturday.
Cook sticking to trusted recipe despite
Englands half-baked batting failures
BY FRANK DALLERES
CRICKET

SPORT | IN BRIEF
Hushovd takes yellow jersey
CYCLING: Norwegian Thor Hushovd
took the race leaders yellow jersey after
Garmin-Cervelo won the second stage of
the Tour de France, the team time trial.
Scotlands David Millar, Hushovds col-
league, lies second overall while
Australian Cadel Evans is close behind
after his team, BMC Racing, finished
runners-up yesterday.
Haskell on way back to Wasps
RUGBY UNION: England flanker James
Haskell will return to Wasps next year,
three years after leaving the club for
Stade Francais. Haskell, 26, is first plan-
ning a stint with Ricoh Black Rams in
Japan following the World Cup later this
year. He said: I believe I come back to
Wasps both a better player and a more
rounded individual as a result of my
experiences abroad.
NEWLY-CROWNED Wimbledon
champion Petra Kvitova admits
she did not believe she would
carve out a career in tennis.
The 21-year-old from the Czech
Republic claimed her maiden
grand slam with a convincing 6-3,
6-4 victory over 2004 winner Maria
Sharapova on Saturday.
That landmark triumph has ele-
vated her to the A-list of the
womens game way beyond the
modest ambitions harboured by
the teenage Kvitova.
Until I was nine I was probably
the best but then I was third or
fourth in my age group, she said.
I didnt think I could be profes-
sional because I was practising
only after school for an hour or an
hour and a half.
Kvitova is the latest player to
capitalise on the absence of a dom-
inant force on the womens tour,
but insists it is too early to write
off the Williams sisters, who have
missed much of the last year.
Kvitova: I
didnt think
Id make it
Kvitovas victory marked her first grand
slam win Picture: ACTION IMAGES
NEW world No1 Novak Djokovic toast-
ed a double celebration last night
after crowning his dazzling ascent to
the apex of the mens game by beat-
ing the man he replaces, Rafael Nadal,
to win his first Wimbledon title.
Djokovic thrilled Centre Court by
sweeping aside defending champion
Nadal 6-4, 6-1, 1-6, 6-3 to claim his sec-
ond grand slam of a breathtaking sea-
son and extend his record to just a
single defeat in his last 51 matches.
Incredibly, it was already the Serbs
fifth victory over Nadal this year all
of which have come in finals and
came just hours before todays official
pronouncement of Djokovic as the
highest ranked man on the tour.
I managed to achieve a lifetime
goal and I managed to make my
dream come true, all in three days. Its
just an incredible feeling that Im
never going to forget. This is the best
day of my tennis career, he said.
For these kind of days, I was prac-
tising every day, being dedicated,
being a tennis professional. Any ath-
lete in the world dreams of being No1.
So finally when you really do it and
when you know that youre the best,
it's just an amazing achievement.
Winning two sets in just over an
hour against the defending champion
on the court that he hasnt lost on for
four years was incredible. It was the
best tennis match on grass courts that
Ive played ever. It came at the right
moment.
Djokovic edged a desperately tight
first set, capitalising on his first break
point of the afternoon at 5-4 when
Nadal uncharacteristically netted a
forehand, but breezed through the
second. Nadal, unbeaten in 20 match-
es at Wimbledon and usually so
resilient, could not get close to the
Belgrade native, who put on a mas-
terclass in aggressive tennis studded
with 13 winners.
The Spaniard desperately needed
a foothold and he found one early in
the third when Djokovic suddenly
dipped, and Nadal took advantage.
But it proved a mere blip, and
Djokovics third career grand slam
looked increasingly inevitable as he
hurtled towards championship
point, which he took first time. Two-
time winner Nadal, 25, admitted his
series of defeats to the same oppo-
nent had played on his mind as he
fought to cling on to his title.
To change things I probably have
to be a little bit less nervous, play
more aggressive, and all the time be
confident with myself, he said.
Thats what Im going to try next
time. If not, Im going to be here
explaining the sixth.
Djokovic, who has now won eight
titles this year, cites Serbias Davis
Cup triumph in December as the
catalyst for his superb form.
After the Davis Cup win I was full
of life, full of energy, eager to come
back to the tennis court, eager to
play more, win some other tourna-
ments, said the Australian Open
champion. I lost my fear. I believed
in my abilities more than ever.
On winning, Djokovic dropped to
the turf and picked up a blade of
grass, before eating it. I wanted to
see how it tastes, he said. It tastes
good. I didnt know what to do for
my excitement and joy.
Electric Djok stuns Nadal
Serb caps rise to world No1 by claiming first
Wimbledon title with dazzling triumph
BY FRANK DALLERES
TENNIS

BY FRANK DALLERES
TENNIS

Broad lands fine

for umpire dissent
ENGLAND fast bowler Stuart Broad
has been fined half his match fee for
showing serious dissent to umpire
Billy Bowden in Fridays one-day defeat
to Sri Lanka.
Broad made unacceptable and
offensive remarks towards Bowden
after having an appeal for lbw against
Jeevan Mendis turned down.
Twenty20 captain Broad, who was
fined last summer for throwing the
ball at Pakistan batsman Zulqarnain
Haider, later admitted the offence.
Stuarts behaviour was not accept-
able in any form of cricket, said match
referee Alan Hurst. Accepting an
umpire's decision is an essential fea-
ture of cricket and part of its spirit.
BRITAINS David Haye admits he is
having second thoughts about retir-
ing after losing his WBA heavyweight
title to Wladimir Klitschko in
Germany on Saturday night.
Haye has long insisted he would
quit the ring in October, when he
turns 31, but refused to commit fol-
lowing his unanimous points defeat
to the Ukrainian, who also holds the
IBF and WBO belts.
Im not making any decisions yet
on retirement, said the Londoner,
who blamed his underwhelming per-
formance in rainy Hamburg on a bro-
ken little toe.
A re-match has been mooted,
although neither Klitschko, who has
set his sights on more British opposi-
tion in Dereck Chisora and rising star
Tyson Fury, nor Haye seem to have
the requisite appetite to make the
fight happen.
Will he want to give me a rematch
when Im 100 per cent fit? I dont
know. If not, then I dont know. I real-
ly dont know, Haye added.
Id love him to give me a rematch.
He said he can knock me out and Id
love him to give it a go. If he couldnt
knock me out on one leg, pretty
much, then how about when Im fit?
Klitschko, 35, responded: If the
guy wants a rematch and comes into
the press conference shouting I want
a rematch, that was nothing, then
okay. But I didnt see from David
Haye a real desire to have a rematch.
Instead the rematch was pushed to
him and he was like okay, maybe, I
dont know, whatever.
Promoter Frank Warren believes
Haye should write off his heavy-
weight career just five fights after his
step up from cruiserweight and is
urging him to hang up his gloves.
I think he should retire, said
Warren. Hes got money in the bank
so why does he need to fight on? He
was a great cruiserweight but hasnt
got it at this level.
Former WBC champion Frank
Bruno refused to wade into the retire-
ment debate, but said Haye would be
remembered as a very, very good
cruiserweight. Bruno added:
Heavyweight and cruiserweight are
two different cups of tea; Harrods and
Primark.
The fight failed miserably to live up
to months of bad-tempered build-up,
yet Haye defiantly insisted the contest
had been good for the flagging divi-
sion.
I feel weve put heavyweight box-
ing back on the map because this
fight got so many people excited, he
said. Wladimirs had more than 50
fights and this is the first one to have
reached out to everybody and I think
I played my part in that.
Klitschko is now targeting the win-
ner of this months clash between
British champion Chisora and Fury,
the undefeated 6ft 9ins 23-year-old
from Manchester.
WEST HAM have vowed to take legal
action against London rivals
Tottenham following a fresh bout of
controversy over the future of the
Olympic Stadium.
The Hammers yesterday mounted a
vigorous defence of their successful
bid for the Stratford venue after it
emerged that a director of the OPLC,
the public body that voted for their
proposal ahead of Tottenhams, also
did paid consultancy work for the
Upton Park outfit. A Sunday newspa-
per alleged that the payments were
uncovered by a private investigator
who was hired by Tottenham, who
have not given up hope of the OPLCs
decision being overturned.
That has prompted West Ham to
take action against Spurs, who they
accuse of obtaining private informa-
tion illegally, and the newspaper.
We are certain of the robustness
of our successful bid for the Olympic
Stadium, West Ham said in a state-
ment. The only wrongdoing here is
by those who have broken the law
and obtained private information.
The club added: The suggestion of
secret cash in the article is absolute-
ly and categorically denied. As such,
legal action is being taken against the
Sunday Times, as well as Tottenham
Hotspur.
Tottenham last night declined to
comment on allegations made by the
newspaper or West Ham.
The storm is likely to increase pres-
sure on the government to re-open
the debate about who should occupy
the stadium after the London 2012
Games.
The OPLC director, Dionne Knight,
whose partner works for West Ham,
has been suspended on full pay.
Hammers and Tottenham at war after
fresh claims fire Olympic Stadium row
BY FRANK DALLERES
OLYMPICS

DAVID HAYE
(Great Britain)
Fights 27
Wins 25
KOs 23
Losses 2
WLADIMIR KLITSCHKO
(Ukraine)
Fights 59
Wins 56
KOs 49
Losses 3
REVISED RECORDS | HAYE V KLITSCHKO
Results
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email sport@cityam.com
23
Haye uncertain on future
after Klitschko damp squib
Haye (right) lost by unanimous points decision Picture: ACTION IMAGES
BY FRANK DALLERES
BOXING

KEY MOMENTS | DJOK AND AWE

It was to be Djokovics day, however, and the
Serb rediscovered his ruthlessness in the
fourth set to despatch defending champion
Nadal before celebrating by eating a few
blades of Centre Court turf
Two-time champion Nadal showed his trade-
mark resilience just as the trophy threatened
to slip from his grasp, breaking early in the
third to dent Djokovics soaring confidence
and put himself back in the match
Djokovic snatches the upper hand by edging a
tight opening set and dazzles in the second,
reeling off 13 winners and some of his finest
tennis yet on grass to go two sets up against
Nadal, a man unbeaten in 20 at Wimbledon
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