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FTSE 100 t5,436.70 -29.66 DOW t11,397.61 -246.88 NASDAQ t2,614.92 -52.93 /$ 1.57 t-0.01 / 1.15 +0.01 /$ 1.37 t -0.02
iPhone 4S
sales set a
new record
THE iPhone 4S has become the fastest
selling mobile device ever, despite ini-
tial scepticism, shifting more than 4m
units in just three days.
The handset more than doubled
the record set by iPhone 4 last year,
instantly entering the list of all-time
fastest selling gadgets.
It is now vying with Microsofts
Xbox Kinect which sold 8m units in
two months for the top spot.
The iPhone 4S had already broken
Apples record for the most pre-
ordered device, racking up more than
1m in 24 hours, compared to the
iPhone 4s 600,000.
However, most analysts expected it
to get off to a blistering start. The 4S
will be deemed a success or a failure
on whether it goes on to shift more
than 20m units a quarter.
The 4S includes a faster processor
than its predecessor designed by
FTSE 100 member ARM and an
improved camera. However, the
biggest attraction is its Siri voice
recognition software that Apple says
could revolutionise the way we inter-
act with our phones.
Apple also said it has seen 25m peo-
ple download its new iOS 5 operating
system since it went live a week ago.
UK broadband providers said traffic
on their networks was at an all time
high as users of Apples mobile
devices, including the iPad and
iPhone, scrabbled to download the lat-
est software.
RIM OFFERS COMPENSATION: P15
BY STEVE DINNEEN
TECHNOLOGY
Vikram Pandit said the results were solid in a challenging economic environment Picture: GETTY
CITIGROUP bucked gloomy economic
trends to post a surprise jump in prof-
its yesterday.
The boost came mostly from a drop
in losses from bad loans, which fell by
41 per cent to $4.5bn (2.86bn) in an
unexpectedly bullish sign from US
consumers.
Chief executive Vikram Pandit
declared the results solid in a chal-
lenging economic environment and
said he was scrapping plans to offload
the banks credit card arm after it did
far better than expected.
The business had been placed in Citi
Holdings, the groups run-off portfo-
lio, but will now be transferred back
into the fold of core assets, after bring-
ing in $2.2bn in profits year-to-date.
The bank said that the division had
gained from consumers other credit
avenues drying up, driving them
towards using Citi credit cards more.
Like JP Morgan Chase, which report-
ed results last week, Citi gained $1.9bn
in pre-tax profit from an accounting
technicality, but even stripping out the
effect, its earnings rose.
Pre-tax profit rose 10.4 per cent ver-
sus the same period last year, reaching
$3.39bn for the group on the back of
smaller losses from Citi Holdings
assets.
Losses at the non-core division
dropped by 25 per cent versus last year
CITI BUCKS GLOOM
WITH PROFIT HIKE
BY JULIET SAMUEL
BANKING
www.cityam.com Issue 1,491 Tuesday 18 October 2011 FREE

HALF-TERM
ACTIVITIES
OUR PICK OF CHILD
FRIENDLY EVENTS
IN LONDON P26
PROTESTERS DIG IN
FOR THE LONG HAUL
HUNDREDS SET UP CAMP P6
BUSINESS WITH PERSONALITY
to $1.24bn.
However, revenues were flat or
down eight per cent if the accounting
gain is removed and overall prof-
itability was dragged down by its
investment bank.
Top-line income at the investment
bank shrank 12 per cent, with equities
revenues plummeting by 73 per cent
to $289m and fixed income shrinking
revenues down by a third to $2.71bn.
The numbers will make grim read-
ing for front-office bankers, who are
already facing the prospect of lay-offs
in their thousands.
Shares in Citi closed down 1.65 per
cent at $27.93 in the US yesterday.
Meanwhile, Wells Fargo, the US
retail bank, reported quarterly profits
of $8bn yesterday, which was a slight
improvement on the previous quarter.
Certified Distribution
29/08/11 till 02/10/11 is 98,447
News
2 CITYA.M. 18 OCTOBER 2011
Euro dithering
hits US stocks
A LACK of political action to resolve
the Eurozone crisis hit stocks across
the pond yesterday, after German
finance minister Wolfgang Schaeuble
said that EU leaders wont have a
definitive solution this weekend.
Schauble spoke at Londons
Chatham House before a dinner with
chancellor George Osborne at
Downing Street last night.
The countdown to Cannes contin-
ues, Osborne said yesterday. The
biggest boost to growth across the
world and for Britain would be a
resolution to the crisis in the
Eurozone. Maintaining the momen-
tum towards that will be the focus of
my discussion with my international
counterparts today.
Stocks had risen earlier in the day as
hopes grew that Europe would suc-
cumb to pressure from the G20 to stop
the debt crisis from escalating out of
control. But markets across the conti-
nent closed down as optimism faded.
US stocks also suffered yesterday,
with the Dow Jones closing down 2.12
per cent. The CBOE Volatility index,
Wall Streets so-called fear gauge, rose
16 per cent to 32.82, its highest one-
day jump since August.
Analysts fear that contagion is
spreading considerably beyond
Greece, threatening other sovereigns
and highly-exposed banks. The spread
between French 10-year yields and
German 10-years expanded beyond 96
basis points at one point yesterday.
The yield on Italian 10-year bonds
remained 5.8 per cent.
In its latest bid to hold down yields
in troubled, peripheral states, the
European Central Bank (ECB) bought
BY JULIAN HARRIS
EUROZONE
Capitalists: the real revolutionaries

ONCE again, Apple, the worlds most
successful company, has pulled it off:
it has sold 1m of its latest iPhone in its
first 24 hours, smashing all the
records. But this statistic should be of
interest to more than tech geeks: it
says a lot about how fast economies
can evolve, especially in times of stress
and readjustment. It also shows just
how powerful an agent of change cap-
italism really is, and how the pure
market economy as opposed to the
soft, corporatist, rigged version that
dominates so much of our society
relentlessly disrupts and overturns
existing corporate power structures.
There was a time when the excite-
ment came from BlackBerry; once,
believe it or not, it even came from
Nokia. No longer.
As Deloittes economist Ian Stewart
points out, the transience of economic
power in a dynamic market economy
is demonstrated by the intriguing fact
that none of the worlds top ten com-
panies in 1912 were in the top 100 by
1995. Joseph Schumpeter, the great
economist, famously argued that cap-
italism is a process of creative destruc-
tion. This is always true companies,
practices and business models are
being shredded all the time, products
launched and pulled, and capital and
labour constantly reallocated to better
uses. What the pseudo-Marxist crew
camping on the stairs of St Pauls does-
nt understand is that capitalism is
the truly radical, revolutionary and
subversive system. That is why so
many people on the right the pou-
jadiste tendency that hates free trade,
big companies and finance doesnt
like capitalism. If you dont like
change, and think that progress is a
bad thing, then you wont like the
market economy and will want to
tame it, control it and slow it down
with red tape and bailouts.
Schumpeters process of creative
destruction applies when the times
are good as well as when the times are
bad. But recessions destroy capacity
and shift resources at an especially
fast rate as bust projects and firms are
liquidated in vast quantities very
quickly (if the market is allowed to
operate freely). A recession can be seen
as an acceleration of the process of
change: far more structures and capi-
tal are destroyed than in ordinary
times, causing GDP to fall and unem-
ployment to soar, at least for a period
of time. The bigger the bubble, the
more dud projects and the greater the
malinvestment, the bigger the subse-
quent liquidation will be and the
greater the transitional pain.
But while everybody always and
understandably focuses on the
anguish and destruction inevitably
seen during periods of readjustment
especially the rise in unemployment,
which is always deeply tragic they
usually miss out the opportunities
and growth that occur during periods
of economic stress. It is almost always
forgotten that the recessions of the
1930s (and prior to that, the 1870s)
were periods of great technical change
and innovation. Microsoft was found-
ed in 1975, when the US economy was
in recession. Apples share price has
risen 400 per cent since Lehman
Brothers collapsed in 2008, thanks to
the success of its new products.
As Daniel Mitchell of the Cato
Institute puts it, capitalism without
bankruptcy is like Christianity with-
out hell. Its just not the real thing.
The problem with bail outs is that
they delay fresh thinking and wealth
and job-creating innovations. It is a
shame those who criticise capitalism
are so blind to its real nature.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Wolfgang Schaeuble said a solution would not emerge this week Picture: REUTERS
NEWS | IN BRIEF
Moodys mulls French rating
Moodys warned today it may slap a
negative outlook on Frances Aaa credit
rating in the next three months if the
costs for helping to bail out banks and
other Eurozone members stretch its
budget too much. The warning comes as
European Union leaders discuss ways to
protect the regions financial system
from an expected Greek debt default.
Frances progress on fiscal and economic
reforms and potential adverse develop-
ments in financial markets or the econo-
my will also be taken into account under
the review, Moody's said. A negative
outlook could be a sign Frances rating
could be downgraded.
UK warns not to hide fugitives
British Foreign Secretary William Hague
warned Libyas neighbours yesterday not
to shelter Muammar Gaddafi or mem-
bers of his entourage who have been
indicted by the International Criminal
Court. We've been very active in
reminding other countries in Africa of
their responsibilities ... to apprehend and
to hand over to Libya or the ICC any of
those people who go on to their territo-
ry, Hague said in Tripoli.
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 Jo Simpson
Pictures Alice Hepple
Commercial
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Commercial Director Harry Owen
Head of Distribution Nick Owen
2.243bn worth of bonds between 6
October and 12 October, down from
2.312bn the previous week and tak-
ing the programmes overall total to
165bn. Over half the ECBs staff (55
per cent) feel that outgoing ECB presi-
dent Jean-Claude Trichet has taken the
Bank beyond its remit by allowing the
interventions, a Reuters survey
showed.
Nevertheless, more than half of
those who thought the ECB had over-
stepped its mandate said the decisions
taken were right given the circum-
stances.
ECB policymaker Juergen Stark said
last night that the bank could not go
any further in trying to stave off the
crisis. Stark whose decision to quit
the ECB is thought to be in protest
against the bond-buying said: To ask
more of the ECB will challenge its
independence.
MARKETS: P19
THEFT, FRAUD AND ERROR TAKE
4.9BN TOLL ON SHOPS
Shoplifting, employee theft and error
have cost UK retailers an estimated
4.9bn in the past year, the highest
figure ever recorded, as worsening
economic conditions fuel rising levels
of crime in the retail sector. In the
year to June 30, losses relating to
theft, fraud and error in the UK retail
sector increased by 6.2 per cent,
according to the Global Retail Theft
Barometer.
WEAVERING FOUNDER FACES FUND
FRAUD CLAIMS
The founder of Weavering Capital
(UK), one of Londons oldest hedge
fund managers which collapsed in
2009, was the chief architect of a
$600m (380m) hedge fund fraud
the High Court was told yesterday.
MCR, the joint liquidators of
Weavering, began a civil lawsuit
against Magnus Peterson, the founder
and chief executive of the hedge
fund, and against other former
employees including Mr Petersons
wife Amanda, a former director of
Weavering who is facing claims that
she breached her duty as a director.
BIG OIL SNUB TO OFFSHORE IRELAND
Twelve companies have won licensing
options to explore Irish coastal waters
for oil and gas. But in a blow to the
Irish governments drive to increase
offshore exploration, none of the
worlds oil majors applied.
COMPANIES EXPECT MORE LAWSUITS
A boom in corporate litigation is
expected in the US and UK due to
increased regulation and whistle-
blower complaints, a transatlantic
survey of top in-house lawyers by the
law firm Fulbright & Jaworski has
found. More than 90 per cent of US
companies and 85 per cent of UK
companies are expecting lawsuits to
stay the same or rise next year.
EQUITABLE LIFE GROUP ATTACKS
INCOMPETENT TREASURY
Thousands more Equitable Life poli-
cyholders could die before they
receive compensation amid continu-
ing government incompetence, the
mutuals chief campaign group has
warned. According to the Equitable
Members Action Group, the Treasury
has rejected an up-to-date list with
the names and addresses of 322,000
policyholders, citing data protection
legislation.
PRESIDENTIAL CANDIDATE VOWS TO
TAX REDUNDANCIES
British companies that invest in
France could be hit by a series of
measures pledged by Franois
Hollande, who is to stand for the
Socialist Party in next years presiden-
tial election. He wants penalties for
companies that make staff redun-
dant while recording a profit.
LIAM FOX INQUIRY FAILS TO IDENTIFY
ADAM WERRITTY BACKERS
An official report to be published
today will not identify those who
funded Dr Liam Foxs self-styled advis-
er, The Daily Telegraph can disclose.
Sir Gus ODonnell, the Cabinet
Secretary, is expected to rule that the
former Defence Secretary broke the
ministerial code of conduct by failing
to declare the arrangements sur-
rounding Adam Werritty. However,
the report, set to run only to about 10
pages, will conclude that there is no
evidence that Dr Fox personally profit-
ed from the arrangement.
HARTNETT PLEDGES TO ANSWER QUES-
TIONS ON 'ODD' TAX DEALS
The top taxman at HM Revenue &
Customs has pledged to report by
tomorrow the level of detail he can
reveal about two tax settlements with
Goldman Sachs and Vodafone.
CHINA EASTERN CANCELS ORDER FOR
24 BOEING 787 DREAMLINER JETS
China Eastern Airlines Corp, citing
delivery delays by Boeing, canceled
an order for two dozen 787
Dreamliner jets and instead will buy
45 of the US company's smaller 737
aircraft. The shift, disclosed in a regu-
latory filing in Hong Kong yesterday,
marks one of the biggest order can-
cellations for Boeing's first all-new
airliner in 16 years.
ALLEGATIONS OF FIRMS' ABUSES
ABROAD TO GET COURT HEARING
The Supreme Court said yesterday it
will consider a lawsuit against Royal
Dutch Shell to decide whether corpo-
rations can be sued in US courts for
allegedly aiding human-rights abuses
overseas. The case examines whether
corporations can be held liable under
a 1789 law passed by the first US con-
gress.
WHAT THE OTHER PAPERS SAY THIS MORNING
DESPITE fears of a global economic
slowdown US industrial output
increased in September, according to
Federal Reserve figures out last night.
Output increased by 0.2 per cent,
compared with flat production regis-
tered in August.
However, manufacturing figures
for New York State declined for the
fifth consecutive month in October.
At minus 8.48 the general business
conditions index registered a slight
improvement on Septembers minus
8.82. The states new orders increased
from minus 0.8 to a positive 1.6, the
highest level since May.
IBM, the computer services giant,
reported a rise in third quarter profits
and raised its full year guidance yester-
day, helped by steady corporate spend-
ing and continued growth in
emerging markets.
IBM said its full year operating earn-
ings would be at least $13.35 (8.47)
per share, up 10 cents from its previ-
ous forecast of $13.25 per share in July.
Revenues rose eight per cent from a
year earlier to $26.2bn, but fell slightly
short of analyst expectations, under-
scoring investors fears about slower
information technology spending.
US economic worries and the
European financial crisis have hurt
demand but companies such as IBM
that sell hardware and software for
data centres powering the Internet
have shown resilience.
Third-quarter earnings rose seven
per cent to $3.8bn compared with
$3.6bn in the third quarter of 2010.
In a statement yesterday, Samuel J.
Palmisano, IBMs chief executive, said
growth markets such as India and
China delivered outstanding revenue
performance across software and
services, climbing 19 per cent last
quarter. The company said revenue in
major market countries was flat year
to year, with the US up four per cent
and Europe and the Middle East up
nine percent .
Contract signings for services,
which make up about 60 per cent of
IBM revenue, slowed to $12.3bn in the
third quarter compared to $14.3bn
during the second quarter.
At an investor meeting last night,
chief financial officer Mark
Loughridge said the declines were due
to the impact of currency.
Shares fell by 2.07 per cent to
$186.59 last night before the results,
but fell further in extended trading.
IBM lifts full
year forecast
as profits rise
HOUSEHOLD energy bills will continue
to rise despite government measures,
industry bosses warned yesterday as gov-
ernment ministers met the Big Six
energy companies for talks.
Phil Bentley, the managing director of
British Gas said that prices in the longer
term would keep increasing because of
the rising cost of gas on the international
market and increasing competition for
gas from the Middle East.
It is an inconvenient truth that unit
prices of energy are going to go up, he
told the BBC yesterday.
His comments came as ministers met
with the big six energy companies, con-
sumer groups and watchdog Ofgem to
discuss how to make it easier for con-
sumers to switch suppliers and help
them save on the winter energy bills.
Prime Minister David Cameron said
letters will be sent to more than eight
million customers to encourage them to
shop around to get the cheapest possible
deal they can for their energy.
He ensured that energy suppliers are
being permanently watched by Ofgem
to make sure it is a competitive market.
All of Britains major energy compa-
nies announced price hikes between
June and September, with the average
annual energy bill forecast to reach
1,293 next month.
Ahead of the summit, British Gas,
Scottish Power and Npower promised not
to raise prices again this winter.
British Gas chief warns hike
in energy prices will continue
No slowdown
for US factories
BY KASMIRA JEFFORD
TECHNOLOGY
US ECONOMY
BY KASMIRA JEFFORD
ENERGY
News
ANALYSIS l International Business Machines Corp
$
11 Oct 12Oct 13Oct 14Oct 17Oct
190
189
188
187
186
185
186.59
17 Oct
NO BANKS are providing enough
transparency and detail on staff pay,
and disclosure needs to improve, the
European Banking Authority (EBA)
said in a report released yesterday.
With regard to the new disclosures
on remuneration policy and practices,
there is room for significant improve-
ments for the majority of banks
included in the sample, the report on
banks transparency read.
The EBA said five of the 20 banks
studied provided insufficient infor-
mation on pay, ten could improve dis-
closure and five had not published
their data when the study took place.
Euro banks fail
new pay rules
EUROZONE ECONOMY
David Cameron met with the big six energy suppliers Picture: GETTY
News
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Buckles has some convincing to do
OUCH. After it announced its trans-
formational 5.2bn bid for ISS yes-
terday, shares in G4S lost almost a
quarter of their value. Having pulled
plans for a flotation due to lack of
demand, the private equity backers
of ISS have now successfully
shopped the business to G4S. But the
thinking among some shareholders
is this: if institutional investors did-
nt want it through a public sale,
then why are we buying it trade?
Then theres the huge 3.67bn
debt pile that often comes with pri-
vate equity-owned assets and the
dilutive 2bn rights issue G4S is
doing to help fund the deal. To cap it
off, it is paying a lot for a firm that
has been on the block since the start
of 2011: 8.5 times historic ebitda.
Nick Buckles should be very wor-
ried about the performance of the
G4S share price. In the boom years,
it was quite common for firms to
pay too much, get punished by
shareholders, and still get the deal
away while holding onto their job.
Since 1997, the proportion of deals
in which the immediate market
reaction caused the acquirers share
price to fall suggesting it was over-
paying has averaged 60 per cent,
according to McKinsey. But last year,
the percentage of overpayers fell
dramatically to 47 per cent.
There is one very recent precedent
for what happens when an executive
pursues a transformational
takeover without shareholder back-
ing. When HP boss Leo Apotheker
agreed a $103bn (65bn) acquisition
of Autonomy, HPs shares plunged
20 per cent in a day. A month later
he was ousted. Buckles needs to con-
vince shareholders this is a good
deal and fast.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
16.9bn
7.4bn
Combined
revenues
1bn
Combined
profits
G4S revenue
(2010)
8.5bn
ISS revenue
(2010)
527m
5.2bn
G4S profits
(2010)
G4S is acquiring
ISS for an enterprise
value of
481m
ISS profits
(2010)
From catering to security: a support services giant
INVESTORS took fright yesterday after
security firm G4S revealed plans to
buy ISS from its private equity owners
in a 5.2bn deal.
Shares in G4S plunged more than a
fifth after it said it would pay 1.53bn
in an even split of cash and shares for
the Danish facilities management
group. It will raise 2bn to help fund
the deal through a rights issue and
take on ISS debt of 3.67bn.
It is only eight months, however,
since EQT and Goldman Sachs
Capital Partners pulled a 1.55bn
float in Copenhagen at the eleventh
hour.
Yesterday Nick Buckles, chief execu-
tive of G4S, hailed the deal as game-
changing and said it allows the firm
to move into support services.
We believe this acquisition will
transform our business, significantly
accelerate the delivery of our solu-
tions strategy and create substantial
value for shareholders, he said.
G4S is already the worlds largest
security company and the deal will
create a group with revenues of
16bn and 1.2m staff in 130
nations.
The deal sparked concerns, howev-
er, about its size and shares in G4S
closed down 22.1 per cent at 219.9p.
Buckles dismissed the drop as a tech-
nical adjustment and said the
takeover would be well-received in
the long-run.
Kevin Lapwood from Seymour
Pierce said: Although G4S has in the
past proved effective at integrating
large acquisitions, this will double
the size of the group and there is
bound to be some transactional risks
in the short term.
G4S said the new deal would pro-
vide an estimated 100m of annual
pre-tax cost savings by 2014. The
seven-for-six rights issue is priced at
122p a share.
EQT and Goldman, which bought
G4S for about $3.8bn (2.4bn) in 2005,
will hold a stake of around 11 per
cent.
G4S shares
plunge after
5.2bn offer
BY PETER EDWARDS
M&A
News
CITY veterans Anthony Parsons and
Toby Clark from Deutsche Bank, who
advised G4S alongside Greenhill, have
acted on a series of major deals.
Parsons, head of UK mergers and
acquisitions at Deutsche, returned to
the bank in 2005 after a seven year
spell at Citigroup.
During his time at Citi he advised
private equity house Apax on its 1bn
acquisition of Travelex and West LB on
the sale of Boullion, its aircraft leasing
business.
Clark, a managing director who has
spent 12 years at Deutsche Bank, was
part of a team which advised on retail-
er New Looks 650m flotation early
last year. It was later postponed
because the timing wasnt right
although some investors had criticised
the price.
David Wyles of investment bank
Greenhill also advised G4S. Deutsche
Bank and RBS Hoare Govett acted as
joint global co-ordinators and corpo-
rate brokers to G4S.
RBS Hoare Govett is the corporate
broking arm of the Scottish bank.
MEET THE ADVISERS
ANTHONY PARSONS,
TOBY CLARK
DEUTSCHE BANK
TIME LINE | G4S
17 October 2011
Chief executive Nick Buckles says around
2,000 staff will lose their jobs as part of the
takeover but says there is a good chance
the firm will create 50,000 jobs every year.
23 August 2011
G4S reports a three per cent rise earnings
before interest, tax and amortisation to
239m for the six months to June 30.
31 March 2011
Wins a 750m contract with the Ministry of
Justice the first time control of an existing
state-run jail has been handed to private
managers. The firm will control Birmingham
prison and Featherstone 2, which is being
built in Wolverhampton.
21 March 2011
Signs an estimated 100m contract to be
the official security services provider for the
London Olympics.
29 October 2010
Says it will lose contract with UK Border
Agency for escorting detainees on deporta-
tion flights
15 October 2010
Says it is in talks with an unnamed police
force to operate Britains first totally private-
ly run police cells.
13 September 2010
Announces deal to buy Skycom, a market
leader in African security systems.
24 February 2007
Securicor and the security business of
Danish rival Group 4 Falck agree to merge to
form G4S, the worlds largest security firm.
G4S
635,000 employees
Employees
1.17m
ISS
535,000 employees
Combined
employees
ANALYSIS l G4S PLC
p
280
270
260
250
240
230
219.90
17 Oct
Cost savings
Book now at KLM.com
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News
Activists, left,
invoked the spirit of
the Egyptian
revolution but
serious confronta-
tions were not
reported.
Pictures: Laura
Lean / City A.M.
PROTESTERS against global capitalism
dug in for a long stay outside St Pauls
Cathedral yesterday, after police pre-
vented them from demonstrating out-
side the London Stock Exchange.
About 250 demonstrators appealed
for donations of sandbags, wooden
palettes and tarpaulins as organisers
made plans to create a semi-perma-
nent camp outside the cathedral.
The third day of rallies against what
the activists called corporate greed
passed without any arrests, however,
as City workers returned to their desks
after the weekend.
Demonstrators, who had earlier
been unable to disrupt the London
Stock Exchange, outlined plans to set
up a kitchen, a visitors centre and a
shelter in which to hold general
assemblies the open meetings used
to make decisions about their strategy.
Occupy LSX published an online
manifesto but many passing City staff
said they were still unclear about the
groups aims.
Its placards ranged from anti-capi-
talist slogans to criticism of the coali-
tions planned NHS reforms. A
construction company director, 44,
who did not want to be named, said: I
am still trying to work out what the
objective is.
As protesters invited City workers to
come and join us, one chartered
accountant drew a crowd of onlookers
when he attacked the banking bailout
of 2008.
Tim Sanders, 45, said: The general
public has to understand the meaning
of too big to fail. Capitalism without
bankruptcy is like Christianity with-
out hell.
Kai Wargalla, 26, a student and
activist, originally from Germany. said:
We need politicians and people work-
ing in the financial industries to come
to us and talk to us. I hope City work-
ers will come to support.
Services at St Pauls took place as
normal but the cathedral said the last
few days had not been without vari-
ous challenges.
Shopping centre One New Change
said it was working with the police
but had not been affected. The LSE
declined to comment.
BY PETER EDWARDS
POLITICS
Protesters set up home in the City

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BP has accepted a $4bn (2.5bn) pay-
ment from partner Anadarko
Petroleum towards the Gulf of
Mexico oil spill clean up.
The figure is far less than it might
have won in court, but could reduce
the overall cost of the disaster for the
British group. Anadarko will no
longer pursue its allegations of gross
negligence against BP. The deal
excludes possible government fines
the parties may have to pay.
As a 25 per cent partner in the
Macondo well, Anadarko is liable for
25 per cent of the costs of cleaning
up the spill, compensating those
affected, and paying government
fines. It could only avoid this respon-
sibility if it proved BP had been
grossly negligent something which
could have added around $18bn to
the total amount of fines BP faced.
BPs estimated total payout is up
to $42bn.
BP seals $4bn
clean up deal
with partner
BY JOHN DUNNE
OIL
TEMASEK has launched a S$650m

(350m) bond exchangeable into
shares in the London-listed bank
Standard Chartered, bookrunner
Bank of America Merrill Lynch said
yesterday.
Temasek, a sovereign wealth fund
for the Singapore authorities, is an
18 per cent shareholder in Standard
Chartered.
The offering of the three-year, zero
coupon bonds by Temasek Financial,
a special purpose vehicle, will be
priced on 18 October.
There will be an over allotment
option of S$150m.
Bankers said that Temasek was
using its shareholding in Standard
Chartered to raise money on excep-
tionally cheap terms.
The German government has
raised funds using stakes in
Deutsche Post and Deutsche
Telecom as collateral but interconti-
nental deals and cross-currency
deals such as this Temasek deal are
rare.
Bank of America Merrill Lynch is
the sole bookrunner on the deal.
If the entire Temasek bond was
exchanged into Standard Chartered
shares, then Temaseks 18 per cent
shareholding would come down by
around 1.2 per cent.
Temasek raises 350m with
innovative fund-boosting deal
CAPITAL MARKETS
News
The Gulf of Mexico spill caused devastation to the coast Picture: Reuters
ANALYST VIEWS: HOW IMPORTANT IS IT
THAT BP AGREED A FIGURE? Interviews by John Dunne
KEITH BOWMAN | HARGREAVES LANSDOWN

In all, the shadow of the Gulf of Mexico accident continues to loom.
However, the payment marks another step in the right direction for BP. Its cash
generative nature continues to attract the attention of investors, with further
value enhancing developments possible. The consensus says buy.
ANDREW WHITTOCK | LIBERUM CAPITAL

Until now [Anadarko] had refused to accept any liability for costs. The
settlement represents a positive resolution of a significant uncertainty for BP. Only
Transocean and Halliburton are still holding out. The biggest fundamental negative
(for us) is that Shell yields 4.9 per cent (better than BP).
RICHARD GRIFFITH | EVOLUTION SECURITIES

The acceptance of partial liability by Anadarko further reduces the likeli-
hood of punitive damages against BP. We continue to believe that most of the
issues that have been weighing on BPs shares are more than discounted in the
current valuation of 5.7x 2012 earnings.
ANALYSIS l BP PLC
p
440
430
420
410
400
390
425.55
17 Oct
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THE way the Financial Reporting
Council (FRC) works must be changed
to take into account new powers it has
taken on since its creation, its chief
executive has told City A.M.
Following scandals like Enron and
Equitable Life, the FRCs responsibili-
ties grew from accounting standards
originally to cover areas like corporate
governance, professional oversight,
and actuarial work, Stephen Heddrill
told City A.M.
However, the whole body was not
reformed to take these into account.
Today the FRC publishes a consulta-
tion paper on reforms to the scope of
its disciplinary powers and the type of
bodies covered.
In terms of structure, there is a
case for focusing on audits of major
publicly listed firms, Heddrill said.
We are willing to shrink away from
monitoring charities and private com-
panies, leaving them to regulators like
the Charities Commission.
Heddrill also wants new powers to
speed up investigations: We can make
accountants give evidence, but not
companies. That slows us down and
means we often cannot find what we
need. Powers to settle outside tri-
bunals would also speed up the
process and cut costs for everyone.
Reforms to bring change
to UKs audit regulator
News
BY TIM WALLACE
REGULATION
BOYS TOYS BIGGEST BOOST FOR HASBRO

HASBRO, the US toymaker behind the iconic Mr Potato Head, said third-quarter profits rose
by 10 per cent, as international growth and sales of its boys toys such as the Transformers
helped offset weakness in the US. Net income rose to $171m (108m), up from $155.2m the
same quarter last year but falling short of analyst expectations. Hasbro, however, kept its
outlook for meaningful growth in 2011 revenues and earnings. Picture: Image.net
News
THE two sides battling for control of
private equity fund LMS Capital
appeared no nearer to a deal last
night after chairman Robert Rayne
defied calls to leave the firm quickly.
A group that includes Rayne said
he was willing to step down providing
he could stay on as a director and if a
plan to realise the assets was agreed.
Yesterday the prospects of that hap-
pening appeared remote, however.
Shareholders are likely to be asked to
choose between keeping Rayne in
post, leading to a quick wind-down of
the fund, or asking the independent
directors to take control and carry
out an orderly wind-down.
The concert party, which holds
about 37 per cent of shares, said
Rayne had told the board in
September of his intention to step
down once a capital realisation strat-
egy had been put in place but wishes
to remain as a director.
John Barnsley, chairman of the
group of independent directors, said
however that LMS would stick with its
plan to give shareholders a chance to
vote at an emergency general meet-
ing, expected to be held in late
November. He wants to prevent the
Rayne group having any undue
influence during the wind-down.
Rayne still in post as LMS row continues
GREATNESS HAPPENS BY
CHOICE, NOT CHANCE
Te inspirational new book from JIM COLLINS,
international bestselling author of
BUILT TO LAST and GOOD TO GREAT
NAT ROTHSCHILDS Indonesian coal-
mining company Bumi announced
yesterday it would not be going ahead
with its proposed 75 per cent acquisi-
tion of Bumi Resources Minerals due
to continuing market uncertain-
ties.
The financiers London-listed com-
pany has an existing 25 per cent stake
in BRM through its 29.1 per cent
shareholding in thermal coal produc-
er PT Bumi Resources, which owns
the remaining stake.
Bumi planned to buy the stake
from Bumi Resources for $2.07bn of
convertible bonds, adding base and
precious metals such as tin, zinc and
gold to its core focus on coal.
The acquisition was also intended
to simplify the companys complex
ownership structure.
Although the statement published
yesterday did not provide further
details, the deal is understood to have
been abandoned due to recent falls
Bumis share price, which has
widened the gap with the 11.80
strike price on the convertible bond.
Bumi closed up 1.07 per cent to
756p yesterday.
Rothschild halts BRM buy
BY KASMIRA JEFFORD
MINING
AN increasing number of US and

European banks are putting their pri-
vate equity arms up for sale in order
to boost their capital levels.
Crdit Agricole has opened exclu-
sive negotiations to sell a significant
interest in its private equity arm to
global secondaries fund Coller
Capital, City A.M. understands.
The French bank is believed to have
excluded Carvest, its regional develop-
ment capital arm in the sale, in order
to retain an interest in the private
equity sector.
It emerged fewer than 24 hours
after Edmond de Rothschild sold its
majority stake in Select, the private
equity fund of funds, to manage-
ment, led by David Seligman.
The business, which has funds
under management of 200m
(174.55m), will change its name to
Seligman Private Equity Select.
Select, which was set up in 2003,
has raised two funds-of-funds and has
said the final close on its first second-
ary fund will occur soon.
Banks face having to boost their
capital levels because of the wave of
regulatory reforms, such as the Basel
III guidelines, in the aftermath of the
2008 crisis.
Many have responded by trying to
offload their private equity and
hedge fund units, although some
parts of the funds-of-funds industry
fear the market is becoming crowded.
Last month Axa hired Credit Suisse
as it put its private equity division up
for sale with US giant KKR expected to
be among the bidders.
Axa hopes to obtain between
200m and 400m in a transaction,
although insiders have stressed a deal
is not certain to take place.
Coller declined to comment and
Crdit Agricole did not respond to a
request for comment.
Banks in
new private
equity sales
ASIA-focused commodities trader
Noble has closed its London coal trad-
ing desk while hiring heavily in the
US and Asia, in the latest blow to the
Citys status as a global financial hub.
The desk used to trade both physi-
cal coal and coal swaps in London as
part of Nobles 120 staff employed in
two UK offices.
Many of Nobles physical coal and
coal swaps traders have now left the
firm as a result, it emerged yesterday.
Singapore-listed Noble is now
expanding into Asia as it seeks to cap-
italise on Chinas soaring demand for
commodities, including coal.
Its executive vice president for coal
and carbon, Neil Dhar, has estimated
China will need about 200m tonnes
of coal imports per year by 2015.
Noble is primarily an Asia-based
business for coal so it makes sense to
grow the business there, where all
the future demand growth and a lot
of new production is going to come
from, one of its former traders said.
Noble has also hired seven new
petrol traders in the US for its trading
desks in Houston and Stamford in
more signs that other countries are
benefiting while it withdraws from
London.
It has continued buying into the
pipelines for commodity assets, pay-
ing $950m (600m) for two sugar
mills in Brazil and raising its stake in
subsidiary Australian iron ore produc-
er Territory in June.
A competitor to Glencore, Noble
was founded in 1980 and employs
11,000 globally across mining, pro-
cessing, storage, port terminals and
trading operations.
It is now Asias biggest diversified
commodities trader, and made
$343m net profit in the first half of
the year, up 70 per cent from a year
earlier, on revenues of $39.7bn.
Noble shuts
its City coal
trade desk
A LITTLE-known brokerage in New
York toppled Goldman Sachs and
Morgan Stanley from the top of the
New York Stock Exchanges ranking of
trading companies for the past two
weeks, it has emerged.
Latour Trading topped NYSEs week-
ly list of the biggest programme
traders, which use an automated sys-
tem to execute large trades buying or
selling batches of stocks at a time.
Used primarily by institutional
investors, it is seen as a good indicator
of the big banks proprietary trading
desks.
Regulatory documents show Latour
is owned by Tower Research Capital,
an algorithm-driven hedge fund
founded by former Credit Suisse trad-
er Mark Gorton in 1998. Latour shifted
568.8m shares in the first week in
October, 14 per cent of all trades.
Trader tops NYSE ranking
CAPITAL MARKETS
Financier Nat Rothschild has given up on buying a bigger stake in Bumi Picture: GETTY
BY ALISON LOCK
COMMODITIES
BY PETER EDWARDS
PRIVATE EQUITY
BY PETER EDWARDS
PRIVATE EQUITY
Wetherspoons pub on Wormwood

Street. Were occupying a table
under the TV, they tweeted happily.
Arsenal just scored.
HAPPY CAMPERS
MEANWHILE, there could be an
unlikely winner from the anti-capital-
ist demonstrations: the struggling
outdoor camping business Blacks,
which has a shop right next to the
protesters in Paternoster Square.
Just the place for the demonstra-
tors to buy their tents for their
overnight stays expect an improve-
ment on Blacks Leisure Groups dis-
appointing loss of 5.5m for 2011 in
chairman David Bernsteins next
trading update
MOVER AND SHEIKHA
THERE will be no honeymoon for
Amanda Staveley (below) when she
marries Mehrdad Ghodoussi on 29
October, as The Capitalist hears the
Middle Eastern dealmaker plans to
return to fixing deals for sheikhs the
day after starting married life.
There will be no time off before the
ceremony either, as Staveley best-
known for helping rescue Barclays
from a government bailout through
the Dubai royal familys billions will
work right up to the day of the cer-
emony.
The marriage the first for
both parties will still be a
memorable occasion as it rolls
on until 2am however, with 500
guests expected at the
black-tie celebration at
the Buckinghamshire
country pile West
Wycombe Park.
But contrary to
reports, Staveleys ex-
boyfriend the Duke
of York is not
expected to be
among the City
and Middle
Eastern revellers.
That would be
unusual, said a
source familiar with
the plans, indicat-
ing Staveleys lunch
companions Sir
Philip Green and
Simon Cowell are
also unlikely to
make an appear-
ance.
YOUNG PRETENDERS
HES HIRING again: Lord Sugar, the
self-styled avid supporter of young
people in business, yesterday
launched his search for a Young
Apprentice ahead of the start of the
BBC One show next Monday.
Most of the tycoons of tomorrow,
aged between 16 and 17, are still in
school but Lord Sugar started in
business at the same age and expects
his prospects to be able to do the
same. All the contestants think they
have what it takes to win the 25,000
fund to start their business career,
but typically Lord Sugar knows
better. He warned: Dont try to pre-
tend you know it all because, believe
me, itll be embarrassing.
SAFE AS HOUSES
IT WAS only a matter of time
before the London property mar-
ket, viewed by the worlds
wealthy as a safe haven for their
cash in difficult times, started
seeing capital flight from
troubled Eurozone
economies.
One high-end residen-
tial developer, who man-
ages flats worth multiple
millions, started seeing a
significant amount of
money coming out of
Greece and Portugal four
months ago, as the view-
ing list for Londons finest
homes grows ever-longer.
No doubt Italian buyers
will soon join the stam-
pede
ADDING VALUE
ARE you a top-performing risk
director in an investment bank
with ten years experience, a uni-
versity degree and an MBA?
If you are not already paid a
base salary of 92,000 with an 80
per cent bonus then it is time to ask
for a payrise, says a salary calculator
designed to tell City professionals
how much they are worth. Check
www.whatismyvalue.co.uk before
storming into your bosss office.
LIBERTARIAN LEAFLETERS HIT OUT
AT ANTI-CAPITALIST PROTESTS
SNEAKING among the protesters
outside St. Pauls Cathedral over the
weekend was a pack of intrepid pro-
capitalist activists.
Their purpose? To reform and edu-
cate the anti-corporate revolutionar-
ies on the beauty of an unimpeded
free market. We distributed more
than 100 leaflets to protesters, ring-
leader Simon Gibbs told The Capitalist.
One third of protesters, mostly
young people, received a clearly laid
out opposing opinion, said Gibbs,
while his leaflets boasted: Capitalists
feed, clothe, and entertain us capi-
talism is not the problem!
The group, an internet forum
known as Libertarian Home, urged
protesters to direct their angst at gov-
ernment-driven cronyism instead.
Government laws protect bankers
from risk, the literature explained,
before lashing out at the Bank of
England for excessive money-printing
and creating the credit bubble.
We dont need to end capitalism,
we need to end cronyism and that
means ending the governments
favours and market distortions, the
group concluded.
Thirsty work, especially on ones
day of rest. Before long, the libertar-
ians packed up and defected to the
Starting them young: Lord Sugar
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
Anti-capitalist protesters camp out near Paternoster Square Picture: Laura Lean/CITY A.M.
EVRAZ, the Russian metals and min-
ing group backed by billionaire oli-
garch Roman Abramovich, is moving
its domicile to the UK and listing in
London as it seeks greater internation-
al acceptance and access to capital.
Evraz, which mines coal, iron ore
and valladium and makes steel indus-
trial goods, yesterday said it wanted to
list on the London Stock Exchanges
premium market and hoped to be
added to the FTSE 100 index to raise its
profile with global investors.
The move will see investors
exchange their global depositary
receipts for shares in Evraz, which is
one of Russias biggest industrial com-
panies and has expanded its global
operations rapidly in recent years.
Evraz is the latest in a series of
Russian firms seeking to list in London
to access the deeper and more liquid
markets despite the strict controls.
We will be the same company but
with a better platform for growth,
Evraz chief financial officer Giacomo
Baizini told investors on a call.
Chief executive Alexander Frolov
said it was keen to adopt the UKs
more stringent corporate governance
standards, and had expanded its board
to include four independent directors,
including Sir Michael Peat, one of the
founders of KPMG. A fifth independ-
ent non-executive may also be added
to the board to equalise the numbers
with the non-independent directors.
The GDR exchange is expected to
close by 4 November, in order to meet
the agenda for the next LSE meeting,
which could add them to the FTSE 100
index by December.
Abramovich invested in Evraz in
2006, buying 42 per cent via
Lanebrook, an investment vehicle he
co-owns with Frolov and Evrazs chair-
man Alexander Abramov. Lanebrook
now owns 72.25 per cent of Evraz and
is backing the plans.
Russias Evraz
to list on LSE
BY ALISON LOCK
CAPITAL MARKETS
SHARES in property consultancy DTZ

plunged by 13 per cent yesterday after
its majority shareholder walked away
from making a formal takeover offer
due to market turmoil and the
Eurozone debt crisis.
DTZ revealed in May that French
family-run property group Saint
Georges Participations (SGP), which
owns about 55 per cent of DTZ, had
approached it with a potential
takeover offer.
SGP made its bid in partnership
with the real estate arm of BNP Paribas,
which was to take over DTZ in a deal
valuing the firm at about 162m. SGP
had until today to make an offer or
walk away under stock market rules.
Tim Melville-Ross, DTZs chairman,
said: The external environment has
contrived to prevent the considerable
efforts of many people over the past
months to consummate a transaction.
Shares in DTZ, which closed at
23.75p last night, have more than
halved in value since talks were
announced in May.
Takeover speculation, combined
with poor economic conditions, meant
DTZ had a varied start to the year, the
firm said in a trading update last
month.
The business has had a lack of clari-
ty, which has now dissipated, John
Forrester, DTZs new chief executive
said, adding that the companys prime
drive was to focus on significant areas
of growth such as China and India.
The group also announced it has
agreed it agreed a 10m credit facility
with SGP and Royal Bank of Scotland.
BY KASMIRA JEFFORD
PROPERTY
DTZ plummets as
takeover talks end
News
Roman Abramovich has a large stake in Evraz Picture: REUTERS
NEWS | IN BRIEF
LOreal decision
L'Oreal heiress Liliane
Bettencourts daughter
Francoise Meyers-
Bettencourt won control
over her 88-year-old
mothers business affairs
yesterday almost two
years after she asked to
take over on the grounds
her mother had been
exploited. Bettencourt
was deemed to be suffer-
ing dementia.
Top streets selling
Foreign landlords own
over 60 per cent of
Londons Bond Street and
Oxford Street, having
snapped up numerous
stores in the past five
years as investors sought
safe havens for their cash,
data from Savills showed.
The property consultancy
said foreign investors
were attracted by the
weakness of sterling.
D
is
n
e
y
X[SQEXMRIIW
IZIV][IIOIRH
Sat & Sun at 2.30pm
&33/23;
thelionking.co.uk
ANALYSIS l DTZ Holdings PLC
p
27
28
26
25
24
23.75
17 Oct
MORGAN Stanley and Credit Suisse
are joint sponsors of the Evraz list-
ing, with experienced bankers on
both sides. Gergely Voros, Morgan
Stanleys co-head of investment
banking in Russia, is heading its
team, while Credit Suisses side is led
by its UK chief executive James
Leigh-Pemberton.
Voros spent 12 years with Morgan
Stanley in London before moving to
Moscow for his new role in Moscow
in April 2010. He has worked on
high-profile floats such as state-
owned oil giant Rosnefts block-
buster $10.5bn listing in 2006.
He has also experienced the rough
end of rocky markets, being forced
to pull the planned $1.5bn listing of
Russian precious metals miner Nord
Gold in February as investors aban-
doned risky stocks.
Leigh-Pemberton works on CSs
highest-profile clients, which range
from Nat Rothschilds Bumi to
Barclays and insurer Resolution.
MEET THE ADVISERS
GERGELY VOROS,
JAMES LEIGH-
PEMBERTON
MORGAN STANLEY,
CREDIT SUISSE
News
Lows on a high after fixing double energy deals
N
OT that many bankers have
experienced the satisfaction of
closing an M&A deal this year,
as markets have proved volatile.
Yet Jeremy Low of RBC Capital
Markets found himself on the adviso-
ry side of two completed deals in less
than a week recently when he advised
Dominion Petroleum on its 118m
sale to Ophir Energy just days after
leading Premier Oil to its acquisition
of Encore Oil.
Lows involvement in both deals,
supported by the banks well staffed
and very capable energy team, under-
lines at least two things; one, that
RBC Capital Markets is fast becoming
a go-to house for energy deals; and
two, that the sector is very much alive
to deals despite overall depressed
market conditions.
Earlier this year RBC also advised
on the 2.4bn sale of Northumbrian
Water to Li Ka-Shing in what is still
the biggest takeover of a UK company
in 2011, and its head of equity capital
markets Joshua Critchley famously
led an innovative 2bn rights issue
for Resolution.
But there is still a way to go before
RBC threatens the likes of JP Morgan,
Goldman and Bank of America
Merrill Lynch in UK bids and deals.
RBC still ranks fairly low down in
the M&A league tables, though. In the
latest Thomson Reuters table RBC
comes in at 19, compared to 20th in
the previous year.
Meanwhile there is some specula-
tion as to what has happened to one
of the banks recent recruits, Sarah
Spikes, part of RBCs financials team
that helped win it a broking position
at Evolution. Spikes, who was paid
handsomely to join RBC from Arden
Partners, appears to have left the firm
less than a year after her appoint-
ment, along with several others.
ISS DEAL BOOST
Yesterdays 5.2bn bid for Danish
catering to security group ISS by G4S
is a big boost for Deutsche Bank,
Greenhill and RBS Hoare Govett who
are advising G4S on the deal.
Morgan Stanley and Goldman
Sachs are advising the vendor, FS
Invest, which owns ISS and they have
struck a deal that will give it an 11.3
per cent of the equity in the new com-
pany.
Estimates suggest the various advis-
ers on the deal and the accompany-
ing 2bn rights issue will net up to
around 100m in fees, which is a wel-
come infusion of funds to the cash-
strapped advisory sector.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
NEWS | IN BRIEF
Louis Dreyfus IPO not likely soon
Commodities firm Louis Dreyfus is not
envisaging a listing of its trading unit in the
short term but is still considering options
to raise capital, leaning towards a private
investor, sources familiar with the situation
said yesterday. There is no rush; the com-
pany has been private for 150 years so
there is no specific timing for changing the
share holding structure, one source said.
Union warning to Air France-KLM
Air France-KLM received a warning shot of
labour disruption yesterday as its board
prepared to sign off on an unexpectedly
broad management shake-up. The warning
by the CFDT, one of Frances largest unions,
stopped short of a firm strike threat but
put the airline's expected new manage-
ment on notice it could face turbulence
over recent calls for new cost savings.
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News
MICROSOFT will hand 28m to Nokia
and Samsung to spend marketing
handsets running the latest version of
its Windows Phone mobile software.
The move is Microsofts latest
attempt by to force its way into the
smartphone market, with Windows
Phone 7 (WP7) languishing in an
industry increasingly dominated by
Googles Android and Apples iOS.
It is understood the lions share
around 20m will be dished out to
close ally Nokia, which earlier this
year said it would scrap its own
Symbian platform to work exclusively
with Microsoft. Samsung, which will
get the remainder of the cash, is a key
partner for Microsoft. Its handsets
have surged in popularity, driven by
the success of the Galaxy S2, and offer
the US giant a chance to gain real
traction. It recently launched its
Focus Flash and Focus S handsets run-
ning the Mango update of Windows
Phone 7.
Meanwhile, analysts at IHS have
estimated Amazon will take a smaller
than expected $10 (6.30) loss on each
unit of its new tablet it sells.
The Kindle Fire retails at just $199
but costs $209 to manufacture.
Amazon also sold its original Kindle
readers at a small loss.
Microsoft flashes cash to promote WP7
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Capital thinking #11
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traders. Some of the best strategies are the simplest.
PHILIPS Electronics has all but aban-
doned hope of selling its TV business
by the end of the year, leaving a ques-
tion mark over how quickly it can
divest its loss-making problem child.
Chief executive Frans van Houten
said: The global TV market has deteri-
orated, and obviously the sooner we
complete this the better, but we first
need to finalise the negotiations, and
whether we can do that this year or
into the first quarter of 2012, there are
some uncertainties with that plan-
ning.
Philips the worlds biggest lighting
maker, a top three hospital equipment
maker and Europes biggest consumer
electronics producer said negotia-
tions to sell off most of its TV business
to Hong Kong based monitor-maker
TPV were intense, constructive and
taking longer than expected.
Van Houten said the companies
were still talking but if negotiations
were to end, it could then take months
to close a deal due to regulatory hur-
dles. Both Philips and TPV said yester-
day there was no agreed timeline to
close the deal. Van Houten also said it
was too early to outline a backup plan.
Philips TV plans in doubt
BY STEVE DINNEEN
TECHNOLOGY
THE price tag of up to $4bn

(2.54bn) some analysts had slapped
on EMI was completely unrealis-
tic, according to people close to the
matter.
It is understood bids for the embat-
tled music giant, which is home to
acts including Lily Allen (pictured),
came in at the very bottom of the
$3bn to $4bn price range forecast by
some analysts.
One source close to the process told
City A.M. the higher valuation was
crazy: way, way off the mark.
Citigroup is in no rush to make a
decision on the multi-billion sale of
EMI, with a decision not expected for
at least a week, according to people
close to the matter.
However, analysts say it will be pri-
vately itching to dispose of the asset it
seized from Guy Hands Terra Firma
earlier this year.
It is likely EMI will be split upon its
sale, with four of the five
bidders vying for one
half of its operations.
BMG Music and Sony
Music Entertainment
are interested in the
publishing arm,
while Vivendis
Universal Music
Group and
Warner Music
are keen on the
recorded music
business.
But only
MacAndrews
& Forbes
Holdings is
understood
to have
tabled a
bid for the
entire compa-
ny.
$4bn EMI
price tag
too bullish
SHARES in Japanese camera-maker
Olympus plunged by a quarter yester-
day as the fallout from the ousting of
its chief executive sent investors run-
ning for cover, and threatened to esca-
late into a legal battle.
Michael Woodford was sacked just
two weeks after the company promot-
ed the Briton from his role as presi-
dent with glowing reports on his
performance.
Hisashi Mori, executive vice presi-
dent at Olympus, told investors
Olympus may take legal action against
Woodford after accusing him of dis-
closing confidential information.
There were also reports Woodford
could take his case to the UKs Serious
Fraud Office, after claimed he had
asked chairman Tsuyoshi Kikukawa to
resign over payments made to advisors
during a $2bn acquisition in 2008. He
says he sent a number of explosive let-
ters demanding action after an inde-
pendent report was drafted by PwC.
The company claims the axe fell
after Woodford refused to accept the
Japanese corporate structure, insisting
on acting autonomously.
His unceremonious exit marks the
end of a 30-year career with the compa-
ny. Kikukawa will take over as presi-
dent and chief executive, roles he had
stepped away from to allow
Woodfords appointments.
Olympus
dives after
firing boss
BLACKBERRY-MAKER Research In
Motion (RIM) will offer millions of
customers $100 (63) worth of apps as
compensation for last weeks outages.
RIMs reputation has been tar-
nished by the failure, which brought
down data services from Chile to
South Africa.
Users will now have free access to
premium apps until the end of the
year a move that is likely to cost the
manufacturer tens of millions of
pounds. However, it falls short of
some analyst calculations of the
amount the company could be due.
Co-chief executive Mike Lazaridis
said: We are grateful to our loyal
BlackBerry customers for their
patience. We have apologised to our
customers and we will work tirelessly
to restore their confidence.
RIM offers compensation
Philips boss Frans van Houten said he does not yet have a back up plan
BY STEVE DINNEEN
TECHNOLOGY
BY STEVE DINNEEN
TECHNOLOGY
BY STEVE DINNEEN
MEDIA
ANALYSIS l Olympus Corp

JPY
2,600
2,200
1,800
1,555
17 Oct
BY STEVE DINNEEN
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y reac Eoin T
THE Takeover Panel made the first
extensions to its new put up or shut
up deadline imposed on buyers of UK
companies yesterday, granting several
potential bidders more time to put their
proposals together.
Entertainment rights company
Coolabi, the home of childrens TV
favourite cat Bagpuss, is one of four
firms that have been granted more time
for buyers to formalise their bids.
Coolabi is currently being eyed by
North Promotions and said it needed
the extra time to progress items such as
due diligence and tax advice, to the sat-
isfaction of North and the independent
directors. It has been granted until 31
October.
The Panels new rule is designed to
stop predatory bidders from putting
takeover targets under siege for long
periods because of the uncertainty and
disruption it causes businesses.
It has set a 28-day deadline for bidders
to either table a formal offer or leave all
bidding for six months.
The rule is already having an effect on
bidding behaviour. Last week Joe Lewis,
the billionaire shareholder of Mitchells
& Butlers, withdrew his 230p-per-share
for the pub group within days of breach-
ing the Panel deadline.
Others given extensions were insur-
ance broker THB, which has been given
until 14 November to negotiate its sale
to US wholesale broker AmWINS;
Merchant Securities, which expects an
offer from South African group Sanlam;
and Travelzest, in talks with Red Label
Vacations.
Certain aspects of the possible trans-
action need to be concluded before
Sanlam can announce a firm intention
to make an offer, Merchant Securities
said in a statement.
The deadline was brought in after the
controversial 11.6bn takeover of choco-
late maker Cadbury by US group Kraft
in 2010. Cadbury chairman Sir Roger
Carr said at the time the board had been
weakened by the drawn-out bid process.
Meanwhile, Omega Insurance and its
potential buyer Canopius said they were
still discussing the detail of its offer
with key shareholders.
More time for
takeover talks
Bagpuss owner Coolabi has been given more time for its sale talks Picture: REX
BY ALISON LOCK
M&A
News
16
News
SALES at Hennes & Mauritz (H&M)
the worlds second-largest fashion
retailer, fell seven per cent on a like
for like basis in September as
unusually warm weather across
Europe dented demand for
autumn clothes.
Last year total sales in
September, the first month in
H&Ms fiscal fourth quarter, rose 16
per cent at the group, while sales
in comparable units were up eight
per cent.
In the three months to the end
of August 2011, H&M sales dropped
three per cent on a like-for-like
basis leading to a 15.5 per cent fall
in profits.
H&M, with more than 2,300
stores in 41 countries, said in
September it would speed up its
expansion and open 265 new stores
in its fiscal year 2010/11, compared
with an earlier forecast for 250 new
outlets.
The retailer has seen earnings
fall for four straight quarters,
squeezed by a spike in input costs
and the strong crown.
Analysts said same-store sales
were a bit disappointing, but
should pick up as the weather
turns colder.
We see that the weather in
October has changed in most of the
European markets, which I believe
will drag the customers to the
stores.
I think well see a better
October, Nicolaj Jeppesen, an ana-
lyst at Sydbank said.
H&M, which will launch a collec-
tion by Italian fashion icon
Donatella Versace in November,
has said that the negative effect
from high cotton prices would
drop off after the fourth quarter.
H&M sales hit by
warm September
BY JOHN DUNNE
RETAIL
FOUNDER and chief executive of

pub group JD Wetherspoon, Tim
Martin, has taken a 19,000 pay
cut this year while two top direc-
tors have parted with the firm
with combined total payments of
766,000.
Martins salary was 375,000 in
the year to 24 July, according to the
companys annual report.
That compared with his 2010 fig-
ure of 394,000.
Meanwhile his shareholding has
remained stable at more than 32m
shares.
Finance director Keith Down left
the company during the period
and was paid a total of 415,000,
which covered all the contractual
obligations to him.
Similarly chief operating
officer Paul Harbottle was
handed 351,000, the annu-
al report said.
It said pre-tax profits for
the year were up 1.5 per per
cent to 61.4m. The company
opened 50 pubs while closing
two, leaving a total of 823.
Like for like sales were up 0.4
per cent. However, on a bleak
note the annual report said that
the pub industry was seeing the
pressure piled on by an increase in
taxes.
We believe that the current
level of tax levied on the
pub industry is unsustain-
able and is directly leading
to the closure of many
pubs, which have become
uncompetitive in relation
to neighbouring countries
and to supermarkets.
Martin founded the pub
1979, making it into a house-
hold name for its relatively
low prices. He tours his bars
about two days a week.
Wetherspoon chief takes pay cut as
two directors sign off with 766k
LEISURE
PRADA UPBEAT ON CHINA GROWTH

PRADA said it would stick to its plan for opening new retail outlets yesterday as it was
optimistic over growth in Asia, particularly in China, where sales are expected to double
or even triple in the next two to three years. In September it reported pre-tax profits up
more than 70 per cent for the first half.
RETAILER John Lewis has appoint-
ed former Habitat creative direc-
tor Theo Williams as design
manager.
Williams will be in charge of
developing the seasonal and
home design trends.
The designer, who
headed the creative
direction at
Habitat for four
years, will put
his energy into
revamping the
department,
focusing on
f ur ni t ure,
lighting and
3D design.
He will work
with current design manager
Mockie Harrison until her
retirement in 2013. Peter
Ruis, director of buying and
brand at John Lewis said:
Theo is a heavyweight in the
design industry, and his
appointment shows our con-
tinued commitment to design,
and ensuring that we bring the
very best home offer to
our customers.
Habitat was
bought by new
owner Home Retail
Group in June.
John Lewis has
design collabora-
tions with the
likes of
Clements Ribeiro,
James Joyce and
Ptolemy Mann.
Habitat guru made
head of design at
John Lewis chain
BY JOHN DUNNE
RETAIL
ANALYSIS l H & M Hennes & Mauritz AB

SEK
213
211
209
207
206.10
17 Oct
US TOYMAKER Mattel could buy
Hit Entertainment, the British
owner of Thomas the Tank Engine
and Bob the Builder as soon as this
week, paying just over 500m for
the media group.
Hit has been owned by private
equity firm Apax Partners since
2005, but US sources close to the
deal have said a sale could be
imminent, according to Sky News.
Apax hired Bank of America
Merrill Lynch almost a year ago to
advise on a possible sale, and the
firm has since attracted interest
from a wide pool of potential bid-
ders, with Hasbro and Walt Disney
also rumoured to be in the run-
ning.
Last week Mattel, the worlds
biggest toymaker, reported a big-
ger-than-expected fall in gross mar-
gins, hurt by a stronger dollar and
higher costs, taking the gloss off a
record jump in sales of its iconic
Barbie dolls heading into the criti-
cal holiday season.
Mattel close to
deal for Thomas
the Tank Engine
CONSUMER
GLOBAL miner Rio Tinto signalled a

major retreat from its aluminium
business yesterday, putting an esti-
mated $8bn (5bn) worth of assets up
for sale across six countries, only four
years after buying aluminium giant
Alcan for $38bn.
Rio Tinto said it planned to sell 13
assets, including smelters and alumi-
na refineries, in a move immediately
interpreted as a way of diverting yet
more resources to iron ore, which
now accounts for nearly 80 per cent
of group earnings.
Its all about returns and these big
miners, Rio included, are always re-
evaluating their businesses. And iron
ore is currently a real cash cow for Rio
Tinto, said Gavin Wendt, senior min-
ing analyst for Mine Life in Sydney.
The sale, which would leave Rio
Tintos remaining aluminium busi-
ness focused mainly on its more prof-
itable Canadian operations, is
designed to help the group more
than double its aluminium earnings
margins to 40 per cent by 2015.
The only way they can achieve
that is by getting rid of all these assets
which can never be world class, said
Peter Chilton, resources analyst at
Constellation Capital Management.
Rio Tintos shares closed down 1.3
per cent, or 43.50p at 3,302p.
Rio Tinto has been in aluminium
since the 1950s and ranks itself as the
worlds largest primary producer
after the ill-timed Alcan deal in 2007,
but it could no longer ignore the busi-
nesss big hunger for capital and rela-
tively meagre returns.
Rio Tinto was careful not to appear
overly keen to sell and made it clear
that aluminium remained a core
asset, saying global demand was rela-
tively good and that it would consider
making further investments in quali-
ty aluminium assets. The company
said it would look at a range of
options for divesting its assets.
SMALL business confidence has nose-
dived in the third quarter of the
year, with firms increasingly having
to cut back on staff.
The Federation of Small
Businesses (FSB) reported yesterday
that its confidence index plunged to
-9.3 points in the three months to
September, down from +0.3 per cent
in the previous quarter.
And a positive balance of six per
cent of surveyed firms said they will
lay off staff in the next three months
the highest balance recorded since
the survey began in the first quarter
of 2010.
It is the first time since we start-
ed the index that we have seen more
people believe that theyre going to
lay off staff than take them on,
explained FSB chairman John
Walker. This has to show the gov-
ernment that a more robust plan for
growth is needed.
The FSB is calling on the coalition
to extend its holiday on National
Insurance Contributions (NIC) to
existing businesses across the UK
that have fewer than four employees
and that employ up to the three
more staff.
The tax holiday currently applies
only to new start-up companies, yet
has only attracted 7,000 businesses
to sign up, the FSB said.
The government should also fol-
low the lead of some other EU coun-
tries in cutting VAT on tourism and
construction, the FSB argued.
Unemployment could rise further with
small firms set to cut jobs, survey says
STATOIL is bidding $4.4bn for
Brigham Exploration to boost its
unconventional energy resources
in the US, one of its key growth
areas.
The Norwegian state-controlled
oil firm backed its belief in the
growing importance of unconven-
tional sources on energy supplies
with an agreed $36.50 (23) per
share all-cash offer, a 36 per cent
premium to Brighams average
price in the past month.
Statoil already has a stake in the
Marcellus shale gas project with
Chesapeake in north-east America
and owns acreage in the Eagle Ford
prospect in Texas, together with
Canadas Talisman.
Marcellus is primarily dry gas,
Eagle Ford is a combination of dry
gas and liquids and this (Brighams
assets) is oil. We now have a good,
deep position in the US in uncon-
ventionals, said Statoil chief exec-
utive Helge Lund.
Statoil bids $4.4bn for
Norwegian firm Brigham
OIL & GAS
KINDER Morgan has struck a $21bn

(13.3bn) deal to buy rival El Paso Corp,
combining the two largest natural gas
pipeline operators in North America
in a huge bet on the fast-growing mar-
ket for that fuel.
The cash and stock deal values El
Paso at a 37 per cent premium to its
Friday market value, and comes as
Exxon Mobil and other oil majors are
spending billions of dollars to develop
and produce shale gas and crude oil in
areas with poor infrastructure.
The combined El Paso and Kinder
Morgan would own about 80,000
miles of pipe stretching from coast to
coast, and could demand higher trans-
port fees from oil and gas producers,
which could then raise the prices that
power companies and other end users
pay for gas.
Now that KMP is by far the biggest
pipeline distributor of natural gas,
that will also give them pricing power
over the market, which could lead to
price pressure to the upside for natu-
ral gas, said Chris Jarvis, president
and founder of Caprock Risk
Management in Rye, New Hampshire.
We expect this to have a positive
impact on the natural gas markets,
likely setting the stage for addition
mergers and acquisitions in the
space.
It was not immediately clear how
regulators would view the deal. Kinder
Morgan said it expected the deal to
close in early 2012.
We believe that natural gas is going
to play an increasingly integral role in
North America, Kinder Morgan chief
executive Richard Kinder. We are
delighted to be able to significantly
expand our natural gas transportation
footprint at a time when it seems like-
ly that domestic natural gas supply
and demand will grow at attractive
rates for years to come.
Kinder Morgan to buy El Paso
BY HARRY BANKS
OIL & GAS
Rio puts $8bn

of aluminium
assets on sale
BY HARRY BANKS
MINING
BY JULIAN HARRIS
UK ECONOMY
News
SYRIAN STRIFE FOR GULFSANDS
GULFSANDS Petroleum said it had not yet been paid for its August output in Syria, esca-
lating the firms problems in the country after the oil ministry last week ordered it to
reduce production. Gulfsands, which produces over 90 per cent of its total output in
Syria, said yesterday it had expected payment for August output of around 24,112 bar-
rels of oil per day last week. Picture: REUTERS
NEWS | IN BRIEF
Amec wins 150m BP contract
Engineering and project management
services firm Amec said yesterday it
had won a 150m contract related to a
giant Shetland oil field operated by BP.
The work will take place on the main
platform design for Clair Ridge, the sec-
ond phase of the Clair oil field, west of
the islands. The award will see AMEC
deliver detailed engineering and project
management services for the construc-
tion and installation phase of two new
bridge-linked platforms, the firm said.
Arcadis buys EC Harris
Engineering firm Arcadis has said it will
buy EC Harris, an international built
asset consultancy. The international
design, consulting, engineering and
management services company said it
would issue 3m shares to EC Harris
partners and pay an undisclosed cash
amount from existing credit facilities.
SNS Securities analysts estimated the
acquisition price to be between 108m
and 144m. The company, which also
cut its outlook for 2011 earnings yester-
day, has been looking for opportunities
away from the struggling Benelux mar-
ket, looking to tap strong growth in
Asia and South America.
Walmart China boss resigns
Supermarket giant Walmart has
replaced its top executive of China
operations after it was forced to tem-
porarily shut down stores in southwest
China. The company, which recently cel-
ebrated its 15th anniversary in China,
closed more than a dozen stores last
week following allegations they sold
regular pork as organic pork over the
past two years. Ed Chan, who served as
president and CEO of Walmarts
Chinese business for nearly five years,
left the company "for personal reasons.
This is the second round of top-manage-
ment resignations at Walmart China in
five months.
MORE NEWS ONLINE
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ANALYSIS l Rio Tinto
p
4,250
3,750
3,250
2,750
Aug Sep Oct
3,302.00
17 Oct
News
Barings
Baring Asset Management has
appointed John Burns as chief operat-
ing officer, taking over from John
Misselbrook, who is retiring at the
end of 2011 after a decade with the
firm. Burns joins Barings from his role
as chief operating officer at the bou-
tique investment bank Visor Capital in
Almaty, Kazakhstan.
BoA Merrill Lynch
Michel Sindelar will join Bank of
America Merrill Lynch in January
2012 as head of CEEMEA emerging
markets equities. Sindelar joins from
Morgan Stanley, where he is a manag-
ing director and head of emerging
markets equity product.
Ince & Co
The commercial law firm has appoint-
ed two Simon Cooper and Kiran Soar
as partners in its insurance and rein-
surance practice. Both join from
Barlow Lyde & Gilbert.
Green Gas International BV
The producer of clean energy and car-
bon credits has announced that Joost
Knoll will succeed Chris Norval as chief
executive, effective from 1 December.
Knoll formerly led the Hertel Group,
where he became CEO in 2003.
MAM Funds
The multi-asset management group
has appointed Tom Delic as an invest-
ment analyst at its Liverpool office.
Delic was previously a technical analyst
at Royal Liver Assurance and Mercers.
Cancer Research Technology
The commercial arm of Cancer
Research UK has appointed Peter
Chambr as its new chairman, to suc-
ceed Melanie Lee. Chambr is cur-
rently chairman of the private
equity-backed pharmaceutical busi-
nesses Xellia Pharmaceuticals and
7TM Pharma.
Towergate Insurance
James Strachan has been appointed
as an independent non-executive
director and chairman of the group
risk and compliance committee, sub-
ject to FSA approval. Strachan is cur-
rently a non-executive director of the
FSA, JPMorgan Asian Investment,
Welsh Water, Sarasin and Partners,
and Social Finance Limited.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Fear gauge up as
US stocks plunge
U
S stocks suffered their worst
loss in two weeks yesterday
after comments from
Germanys finance minister
caused investors to fear Europes solu-
tion to its debt crisis may not come
fast enough.
The S&P index had risen for two
straight weeks for the first time since
July, riding a wave of euphoria built
on optimism that European leaders
had a newfound commitment to tack-
le a crisis that threatened financial
stability and global growth.
The rapid rally left the market sus-
ceptible to swift declines. German
Finance Minister Wolfgang
Schaeuble, speaking of a 23 October
European Union summit on the debt
crisis, tempered enthusiasm, saying,
we wont have a definitive solution
this weekend.
US bank earnings also contributed
to the selling pressure. Wells Fargo &
Co shares fell 8.4 per cent to $24.42
after the US lenders financial results
fell short of expectations.
The German Finance Minister
basically came out and sort of ruined
the expectation that a grand plan was
coming along, that some sizeable
fund was being put together to recap-
italize European banks, said Stephen
Massocca, fund manager with
Wedbush Morgan in San Francisco.
Depending on the development
there, we could technically get back
down to the low end of the trading
range, at about 1,100 on the S&P.
With that in mind, investors
rushed to seek protection in the
options market against losses. The
CBOE Volatility index VIX, Wall
Streets so-called fear gauge, rose 18.2
per cent to 33.39, its highest one-day
jump since August. The VIX is a 30-day
risk forecast of stock market volatility
conveyed by S&P 500 index options; it
generally moves inversely to the S&P
benchmark.
The Dow Jones industrial average
was down 246.58 points, or 2.12 per
cent, at 11,397.91. The Standard &
Poors 500 Index was down 23.72
points, or 1.94 per cent, at 1,200.86.
The Nasdaq Composite Index was
down 52.93 points, or 1.98 per cent, at
2,614.92.
Trading volume was light, with just
6.87bn shares traded on the New York
Stock Exchange, NYSE Amex and
Nasdaq for the day, below the years
daily average so far of about 8bn.
After the closing bell, IBMreported
third-quarter revenue that met expec-
tations. The tech company ended 2
per cent lower at $186.59 during regu-
lar trading, but in after-hours action
IBM shares fell 3.6 per cent more to
$179.81 after reporting results.
B
RITAINS leading share index
closed lower yesterday, giving
up early gains, as miners and
banks went in to reverse after
hopes for an imminent solution to
Europes debt crisis were dashed by
comments from Germanys finance
minister.
Wolfgang Schaeuble played down
heightened expectations that
European governments will resolve
the regions sovereign debt crisis at a
European Union summit on 23
October.
Finance ministers and central
bankers of the Group of 20 major
economies had said at the weekend
they expected the EU summit to
decisively address the current chal-
lenges through a comprehensive
plan.
Specialty miners and banks bore
the brunt of the sell-off as investor
appetite for such risk-sensitive stocks
swung from sharply positive to nega-
tive.
Again, promises of decisive meas-
ures to come, but thats been heard
many times before and, until there
are concrete proposals, investors are
right to remain relatively sceptical,
said Henk Potts, market strategist at
Barclays Wealth.
The FTSE 100 index closed down
29.66 points, or 0.5 per cent, at
5,436.70, having dropped from an
intraday peak of 5,543.72, back below
technically important levels around
5,450 which it breached for the first
time in 10 weeks on Friday.
Based on the annual range of
6,105.80 to 4,791.00, the 50 per cent
level of this range at 5,448.40 was also
an important price level to overcome
... This makes 5,449.70 to 5,448.40 a
key zone that must hold to sustain
the rally. A close under this zone will
likely lead to the start of a substantial
correction," said James A. Hyerczyk,
analyst at Autochartist.
Oils topped the blue-chip sector
performers mainly thanks to strong
gains in BP , which added 2.2 per cent
after it and Anadarko, its partner in
the well that caused last years Gulf of
Mexico oil spill, agreed a $4bn settle-
ment on clean-up costs.
Oil services firm AMEC also stood
out, gaining 1.7 per cent, after unveil-
ing a 150m engineering and project
management contract win as part of
an existing tie-up with BP.
Oriel Securities said the deal gives
more visibility over Amecs medium-
term forecasts, but kept a hold rat-
ing on the stock on a relative
valuation basis.
G4S plunged 22 per cent after
agreeing to buy Danish outsourcing
service provider ISS in a 5.2bn deal
including debt, creating the worlds
biggest security and facilities services
group.
The deal could carry risks as a
large transaction, in that it could
dilute G4S focus on pure security,
especially in government security
and emerging markets security, and
ISS may be unappealing to investors
who turned down the IPO this year,
JPMorgan Cazenove said in a note.
US blue-chips were 1.2 per cent
lower by Londons close, with finan-
cials one of the biggest drags on the
market as an earnings miss from
Wells Fargo & Co, down nearly 6 per
cent, hit the sector, although earn-
ings from Citigroup beat expecta-
tions.
Bank of America and Goldman
Sachs will continue the US banks
reporting season today.
In order for the rally to continue,
its absolutely vital companies deliver
consensus-beating results and give
positive guidance for 2012 and
beyond, said Barclays Wealths Potts.
Lack of plan to fix Euro debt
crisis hits banks and miners
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Syngenta AG
220
230
240
250
260
270
Aug Sept Oct
CHF
264.30
17 Oct
SYNGENTA
Nomura rates the agricultural chemical maker as a buy and increases its
target price from SwFr380 to SwFr385 after a better than expected set of
third-quarter sales. The broker sees solid growth for 2012, plus a pricing
improvement and productivity gains, which should more than offset adverse
currency and raw material effects. Nomura increases its earnings per share
by 1.4 per cent for 2011 and 1,8 per cent for 2012.
ANALYSIS l ASOS PLC
1,500
1,750
2,000
2,250
Aug Sept Oct
p 1,440.00
17 Oct
ASOS
JP Morgan rates the online fashion retailer as neutral with a target price
of 1,900p, after its UK sales growth slowed substantially in the second
quarter. Though international sales continue to perform strongly, the slow
rate of UK growth is likely to be viewed as disappointing. The broker
reduces its full year UK sales to +4 per cent from +13 per cent, represent-
ing second half growth of +1 per cent.
ANALYSIS l Premier Foods PLC
5.00
7.50
10.00
15.00
12.50
17.50
20.00
Aug Sept Oct
p
4.79
17 Oct
PREMIER FOODS
Citi downgrades the food producer from buy/high risk to neutral/high risk
with a target price of 5p after a sharper than expected deterioration in trad-
ing. The broker says the groups third quarter trading statement reflected an
increasingly competitive market environment, with the slowdown in its drive
brands of most concern. Citi lowers its estimates for full year trading profit in
2011 from 225m to 175m, reflecting the slowdown in grocery.
18Jul 5Aug 25Aug 5Oct 15Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5436.70
17 Oct
Nikko Asset Management
Nikko Asset Management Group, the largest
regional asset manager headquartered in Asia,
has appointed Eleanor Seet as president and
executive director of Nikko Asset Management
Asia. Seet will be responsible for leading the
growth of Nikko AM in Singapore and
Southeast Asia. Prior to joining the firm, Seet
held the role of senior director, private wealth
distribution, for iShares. Prior to that, she spent
12 years at AllianceBernstein, responsible for
building the firms distribution channels.
T
HE recent death of Steve Jobs is a timely
moment to step back and reconsider
what innovation is really for. Reading the
obituaries and testimonies posted across
the internet, you would not be alone in assum-
ing that Saint Jobs had cured the world of can-
cer and is now in heaven, reconfiguring Gods
messaging system from analogue to digital.
There are many good things that can be said
about Steve Jobs, particularly concerning his
role as a leader and his ability to commercialise
solutions to irksome consumer user experi-
ences. But the pedestal of a great innovator on a
par with Edison is highly debatable.
The difficulty is that Steve Jobs reached his
peak at a time when society is suffering from
lowered expectations and ambitions, particu-
larly with regard to technology.
It is simply not tenable to compare Apple
with breakthrough innovations like the electric
light, the space race, the discovery of nuclear
power, or the invention of the jet engine. The
Apple universe is narrowly focused on the cre-
ation of devices and applications that elevate
the self above all else; self-expression, self-
absorption, individuated entertainment and
therapeutic communications. Innovation
today is focused not on the transformation of
nature to ensure human progress, but the
transmission of the self. Updating your sta-
tus on a beautifully designed device is now
regarded as important, if not more impor-
tant, than upgrading your understand-
ing of how the world works.
This is not nostalgia but a vital point:
the inflation of Steve Jobs and the sup-
posedly unprecedented Apple-led
innovation era masks a culture of
lowered ambitions, increasingly hos-
tile to large-scale technological
advances that aspire to tame nature
and shape the world we live in. We
need to ask what a man of Jobss
ambition and passion could have
achieved had this been an era when innovation
was about genuinely changing the world.
What is never mentioned or remembered is
that the technologies upon which Steve Jobs
and Apple built a commercial empire were
based upon scientific discoveries made almost a
century ago. The scientific revolution the dis-
covery of quantum physics and mechanics
gave rise to the innovations we now take for
granted and praise. When the great physicists
like Albert Einstein or Niels Bohr formulated
quantum mechanics from 1900 to 1930, they
were trying to understand the fundamental
laws of the universe, not invent something of
great economic importance. Their quest was for
the sheer beauty of solving some of the most
baffling and abstract theoretical questions in
order to advance mankinds knowledge and
our ability to control nature.
The subsequent implications were so far-
reaching they transformed sister disciplines
like chemistry and provided the foundation for
technological wonders: quantum mechanics,
for example, is necessary to engineer solid-state
devices such as transistors, which are the build-
ing blocks of electronics and computers. The
behaviour of semiconductors, an essential
material for transistors, cannot be fully grasped
with classical physics alone (the physics known
before the discoveries of quantum mechanics
and relativity). Without quantum mechanics,
the information age and much of modern sci-
ence would not exist. The inventions of the
computer, the transistor, the World Wide Web
and the laser used in fibre optics the basis for
our global telecommunications industry owe
their existence to quantum mechanics.
These are the giant shoulders upon which
individuals like Steve Jobs stood. Of course,
there will always be a relationship between sci-
entific endeavour and its subsequent exploita-
tion. Both are necessary because that is how
society realises innovation. But the depth of
mourning for Jobs reveals we have moved away
from understanding how critical scientific
knowledge remains to future innovation.
Praising those who put scientific knowledge to
work while remaining hostile or suspicious of
the abstract pursuit of new knowledge that will
allow even greater breakthroughs suggests we
need to refocus our attention.
The idolatry surrounding Jobs since his sad
passing detracts from the critical importance of
the pursuit of pure scientific inquiry. The era of
the scientific revolution can rightly be called an
era of unparalleled innovation, but it became so
because it was, first and foremost, an age ambi-
tious for knowledge. Innovation was an out-
come rather than an end in itself. And no
matter how cool or slick its design, we should
never forget that innovations true purpose lies
in its potential to transform nature for the ben-
efit of mankind.
Dr Norman Lewis is a consultant on innovation and
co-author of Big Potatoes: The London Manifesto for
Innovation. He is speaking at the debate What Is
Innovation For? at the Battle of Ideas festival at the
Royal College of Art on 29 October, sponsored by City
A.M. www.battleofideas.org.uk
20
The Forum
CITYA.M. 18 OCTOBER 2011
Innovation today is focused
on transmitting the self, not
the transformation of nature
Steve Jobs was an amazing
businessman but Einsteins
the genius behind the iPod
cityam.com/forum
NORMAN LEWIS
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
21
Prices could drop
by a third if the
coalition changes
its costly policies
A few cold facts
in the debate on
high energy bills
A
T YESTERDAYS energy price summit,
David Cameron pledged that he would
do whatever he could to bring down the
spiralling cost of energy bills. There is
only one problem: the coalitions own costly
green energy policies, which threaten to raise
energy prices even further in coming years.
David Camerons energy advisers recently
warned him of a 30 per cent rise in consumer
energy bills by 2020 as a direct result of the
coalitions policies. A Deutsche Bank report
last week said that a quarter of UK households
would be driven into fuel poverty by 2015.
Britains industrial electricity prices are
already among the highest of any major econo-
my. One of the reasons: Britain has the most
aggressive decarbonisation target in the world,
a legally binding 80 per cent reduction of CO2
emissions by 2050. A unique and unilateral
burden on our business sector and economy.
By obliging power companies to buy more
expensive, renewable energy, our green levies
have significantly inflated our power bills.
In response to a growing public backlash,
George Osborne has promised that the govern-
ment will not cut CO2 emissions faster than
other countries in Europe.
But there is opposition to Osbornes pledge.
Chris Huhne, green campaigners and even
energy bosses insist families will still be better
off switching to renewable energy, claiming oil
and gas price hikes are inevitable.
These assumptions are completely mistaken.
In reality, we are in the middle of a shale gas
revolution that has decoupled the prices of oil
and gas and is reducing energy prices signifi-
cantly in those countries that have begun to
tap into this new and plentiful resource.
Britain may be sitting on a gold mine of
cheap, abundant and comparatively clean
energy that could supply the UKs energy
needs for a century. Three weeks ago, an esti-
mated 200 trillion cubic feet of shale gas was
discovered near Blackpool, suggesting Britain
has far more shale gas than anyone expected.
Unlike green targets or costly subsidies, the
shale revolution could create a new energy
industry that would generate billions of much
needed revenue and thousands of real jobs.
The knock-on effects of a shale gas revolu-
tion could be just as staggering: cheap energy
would make UK manufacturing more compet-
itive, gas and electricity bills would fall and the
rising trend in fuel poverty could be reversed.
According to Deutsche Bank, the most effec-
tive policy to bring down energy costs would be
to abandon the renewables obligation and
the carbon floor price. This would cut bills by
15 per cent from 2015. I think another 15 per
cent or more could be cut in this governments
lifetime if it encouraged the shale revolution.
Abandoning high-priced green energy pro-
grammes together with the exploration of
cheap British shale gas would bring down ener-
gy costs, perhaps by as much as a third, and
kick-start the UK economy. Given coalition con-
straints, it remains doubtful, at least for the
time being, whether the greenest govern-
ment ever is ready or indeed capable of grab-
bing a golden opportunity with both hands.
Dr Benny Peiser is the director of the Global
Warming Policy Foundation.
Empowered intern
I support Rob Killicks article
[Why unpaid internships are a
good thing, yesterday]. I began
my career as an unpaid intern
hailing from precisely the kind of
low income, disadvantaged
background that is invoked to
argue for closing down these
opportunities. I worked a low
paid (but flexible) job alongside
these placements and became
unfashionably thrifty in order to
make ends meet, consoling
myself with the thought that
nothing worth doing is ever easy
and that the prize would be all
the sweeter for not having been
handed to me on a plate. My
experiences suggest that unpaid
internships actually level the
playing field as they offer talent-
ed but unconnected outsiders a
chance to make an impression
and break the cycle of nepotism
that prevails for new entrants in
some industries.
Daniel Cormack
Actaeon Films
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
In association with
BENNY PEISER
BY ANTHONY J. EVANS
CITYA.M. 18 OCTOBER 2011
The Forum
I
T SEEMS like
Mervyn King has
abandoned the Bank
of Englands (BoE)
inflation target, with the
consumer price index
(CPI) apparently stuck
well above 2 per cent.
But has King privately
taken up a different sort
of target altogether? A more credible alternative that
continues to gain momentum is to set a nominal GDP
(NGDP) target instead. Setting a target for the nations
gross domestic product unadjusted for inflation (what
F.A. Hayek referred to as the total income stream)
has several arguments in its favour. Such a target
allows gains in productivity to reveal themselves in
price deflation over the long-term, and it turns the
attention of policymakers towards market expecta-
tions rather than the previous months inflation figures.
Scott Sumners proposal for the Adam Smith Institute
is an interesting investigation of the topic and suggests
such a target may well be an improvement, and is
worth giving serious attention.
The Economist recently discussed the idea but
after listing several arguments in favour warned that
it should not be undertaken lightly. The main con-
cern is that the BoE has invested heavily in the pres-
ent policy rule, and anchoring inflation expectations
to 2 per cent is no mean feat. Attempting to get the
market to buy into something new is not only a chal-
lenge but also an uncertain one.
However, long-term inflation expectations of 2 per
cent are compatible with NGDP targeting. Most
advocates assume that the target for NGDP should
be around 5 per cent; if we expect real GDP growth
of 3 per cent then 2 per cent price rises would add
up. We should expect inflation to be a lot more
volatile (especially in the short term), but it would be
a case of adjusting the anchor, not removing it.
In fact, with inflation continuing to overshoot the
current policy rule, it seems the BoE has already
abandoned the official rule. Current Bank policy
makes more sense when viewed from an NGDP lens
than an inflation-centred one. Whether it admits it or
not, the Bank seems more keen on stabilising NGDP
than keeping inflation at 2 per cent (see chart).
In the five years leading up to the financial crisis,
CPI rose steadily, while NGDP stayed within a range
of 4-6 per cent. When the crisis hit, NGDP dropped
significantly (and for those who advocate NGDP tar-
geting, this is the main cause of our present woes).
CPI dropped too. What is interesting is that once the
Bank of England began to utilise its monetary tools,
there seemed to be increasing evidence that it was
NGDP, and not CPI, that it was attempting to target.
Im not suggesting we are anywhere close to the
NGDP targeting system some advocates propose.
However, publicly moving towards it might not create
that much of a stir. Im sure many traders recognise
that this is what has already happened.
Anthony J. Evans is Associate Professor of
Economics at Londons ESCP Europe Business
School, and Fulbright Scholar-in-Residence at
San Jose State University.
www.anthonyjevans.com.
The real central bank
target is not inflation
Email: theforum@cityam.com
Twitter: @cityamforum
ANALYSIS l Nominal GDP, % change on a year earlier
Sources: Thompson Reuters; The Economist
2011 2008 2004 2006 2002 2000 1998
8
6
4
2
0
+
-
2
4
6
AVERAGE
EU SHARES
AIR LIQUIDE...............91.61 -0.82 100.65 80.90
ALLIANZ .....................76.56 -1.44 108.85 56.16
ANHEUS-BUSCH INBEV39.61-0.39 46.33 33.85
ARCELORMITTAL......13.79 -0.57 28.55 10.47
AXA.............................10.75 -0.19 16.16 7.88
BANCOSANTANDER ..6.06 -0.04 9.47 5.05
BASF SE .....................50.50 -0.81 70.22 42.19
BAYER.........................44.00 -0.85 59.44 35.36
BBVA.............................6.37 -0.09 9.82 4.94
BMW............................54.50 -1.94 73.85 43.49
BNP PARIBAS ............31.05 -1.20 59.93 22.72
CARREFOUR..............17.04 -0.22 35.29 14.66
CRH PLC.....................12.69 -0.21 17.40 10.28
DAIMLER ....................36.51 -1.31 59.09 30.52
DANONE .....................45.40 -0.91 53.16 41.92
DEU.BOERSE OFFRE41.67 -0.24 55.75 35.46
DEUTSCHE BANK......26.47 -0.84 48.70 20.79
DEUTSCHE TELEKOM 9.40 -0.15 11.38 7.88
E.ON............................17.19 -0.44 25.54 12.50
ENEL .............................3.47 -0.09 4.86 2.81
ENI ...............................15.37 -0.28 18.66 11.83
FRANCE TELECOM...13.03 -0.16 17.45 11.12
GDF SUEZ...................23.12 -0.46 30.05 18.32
GENERALIASS. .........12.60 -0.14 17.05 10.34
IBERDROLA .................5.27 -0.05 6.50 4.29
INDITEX.......................67.58 0.37 68.23 50.92
INGGROEP CVA..........5.92 -0.10 9.50 4.21
INTESA SANPAOLO.....1.23 -0.07 2.53 0.85
KON.PHILIPS ELECTR14.52 -0.28 25.45 12.01
L'OREAL .....................79.44 0.94 91.24 68.83
LVMH.........................113.55 -0.85 132.65 94.16
MUNICH RE ................96.63 -1.21 126.00 77.80
NOKIA...........................4.40 -0.15 8.49 3.33
REPSOL YPF ..............21.78 -0.32 24.90 17.31
RWE.............................29.41 -0.87 55.88 21.22
SAINT-GOBAIN...........33.30 -0.27 47.64 26.07
SANOFI .......................50.43 -0.44 56.82 42.85
SAP .............................41.46 0.07 46.15 32.88
SCHNEIDER ELECTRIC44.48 -1.65 61.83 35.94
SIEMENS.....................73.93 -0.91 99.39 62.13
SOCIETE GENERALE20.25 -0.59 52.70 14.32
TELECOMITALIA.........0.90 -0.00 1.16 0.70
TELEFONICA..............15.14 -0.16 19.69 12.50
TOTAL .........................37.06 -0.17 44.55 29.40
UNIBAIL-RODAMCOSE146.15-1.85162.95 124.05
UNICREDIT ...................0.89 -0.06 2.03 0.64
UNILEVER CVA ..........24.44 -0.18 24.90 20.90
VINCI ...........................34.87 -0.70 45.48 29.49
VIVENDI ......................16.31 -0.24 22.07 14.10
VOLKSWAGEN VORZ112.30 -2.00 152.20 86.40
Price Chg High Low Price Chg High Low
WORLDINDICES
US SHARES
3M.................................75.88 -3.01 98.19 68.63
ABBOTT LABS............52.04 -0.69 54.24 45.07
ALCOA...........................9.58 -0.68 18.47 8.45
ALTRIA GROUP...........27.42 -0.25 28.14 23.20
AMAZON.COM...........242.16 -4.55 246.71 154.23
AMERICAN EXPRESS 45.12 -0.98 53.80 38.75
AMGEN INC.................56.54 -0.95 61.53 47.66
APPLE........................419.75 -2.25 426.70 297.76
AT&T.............................29.02 -0.15 31.94 27.20
BANK OFAMERICA......6.03 -0.16 15.31 5.13
BERKSHIRE HATAWB72.89 -1.86 87.65 65.35
BOEING CO.................61.78 -2.11 80.65 56.01
BRISTOL MYERS SQUI32.44 0.00 33.20 20.05
CATERPILLAR.............81.52 -2.57 116.55 67.54
CHEVRON....................98.61 -1.86 109.94 80.41
CISCOSYSTEMS ........17.15 -0.40 24.60 13.30
CITIGROUP..................27.93 -0.47 51.50 21.40
COCA-COLA................67.00 -0.85 71.77 59.68
COLGATE PALMOLIVE90.94 -1.40 94.89 74.39
COMCASTCLASS A...23.31 -0.63 27.16 18.11
CONOCOPHILLIPS .....68.34 -0.65 81.80 58.37
DU PONT(EI)DE NMR.43.78 -1.31 57.00 37.10
EXXON MOBIL.............77.47 -0.64 88.23 63.47
GENERAL ELECTRIC .16.23 -0.37 21.65 14.02
GOOGLE A.................581.29 -10.39 642.96 473.02
HEWLETTPACKARD..24.86 -1.25 49.39 19.92
HOME DEPOT..............34.65 -0.40 39.38 28.13
IBM.............................186.59 -3.94 190.53 136.70
INTEL CORP................23.24 -0.26 26.78 18.90
J.P.MORGAN CHASE..31.04 -0.85 48.36 27.85
JOHNSON & JOHNSON63.79 -0.93 68.05 57.50
KRAFTFOODS A ........34.77 -0.46 36.30 24.30
MC DONALD'S CORP.88.66 -1.28 91.22 72.14
MERCK AND CO.NEW32.31 -0.67 37.68 29.47
MICROSOFT ................27.05 -0.23 29.46 23.65
OCCID.PETROLEUM..82.68 -2.74 117.89 66.36
ORACLE CORP ...........31.19 -0.66 36.50 24.72
PEPSICO......................61.89 -0.35 71.89 58.50
PFIZER.........................18.69 -0.35 21.45 16.25
PHILIP MORRIS INTL..67.04 -0.36 72.74 55.85
PROCTER AND GAMBLE64.26-0.63 67.72 56.57
QUALCOMMINC.........53.60 -1.38 59.84 42.45
SCHLUMBERGER.......67.52 -3.42 95.64 54.79
TRAVELERS CIES.......49.58 -1.69 64.17 45.97
UNITED TECHNOLOGIE72.12-2.52 91.83 66.87
UNITEDHEALTH GROUP46.60-0.62 53.50 34.50
VERIZON COMMS.......36.94 -0.39 38.95 31.60
WAL-MARTSTORES...54.78 -0.68 57.90 48.31
WALTDISNEY CO.......33.39 -1.08 44.34 28.19
WELLS FARGO& CO .24.42 -2.25 34.25 22.58
FTSE 100 . . . . . . . . . . . . . . 5436.70 -29.66 -0.54
FTSE 250 INDEX . . . . . . . 10250.39 -88.12 -0.85
FTSE UK ALL SHARE ....2805.16 -15.88 -0.56
FTSE AIMALL SH . . . . . . . . 714.45 -1.27 -0.18
DOWJONES INDUS 30 ..11441.43 -203.06 -1.74
S&P 500 . . . . . . . . . . . . . . . 1200.86 -23.72 -1.94
NASDAQCOMPOSITE ...2614.92 -52.93 -1.98
FTSEUROFIRST 300 . . . . . . 966.04 -9.48 -0.97
NIKKEI225AVERAGE....8879.60 131.64 1.50
DAX 30PERFORMANCE..5859.43 -107.77 -1.81
CAC 40 . . . . . . . . . . . . . . . . 3166.06 -51.83 -1.61
SHANGHAISE INDEX ....2440.40 9.03 0.37
HANG SENG. . . . . . . . . . . 18873.99 372.20 2.01
S&P/ASX 20INDEX ......2583.80 41.30 1.62
ASX ALL ORDINARIES ...4337.90 68.90 1.61
BOVESPA SAOPAOLO ..53911.33-1119.12 -2.03
ISEQOVERALL INDEX ...2588.29 -16.33 -0.63
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 891.67 -11.53 -1.28
SWISS MARKETINDEX...5723.41 -37.71 -0.65
Price Chg %chg Price Chg %chg Price Chg %chg
LONGDONCEFIXAM..............................................1689.00 13.00
SILVERLDNFIXAM .....................................................31.97 0.08
MAPLELEAF1OZ .......................................................34.35 0.39
LONPLATINUMAM ..................................................1574.00 28.00
LONPALLADIUMAM..................................................642.00 37.00
ALUMINIUMCASH....................................................2170.00 00.00
COPPERCASH.........................................................7500.00 00.00
LEADCASH..............................................................2007.00 00.00
NICKELCASH.........................................................18850.00 00.00
TINCASH ...............................................................22045.00 00.00
ZINCCASH...............................................................1901.00 00.00
BRENTSPOTINDEX...................................................114.53 3.86
SOYA........................................................................1270.00 13.00
COCOA.....................................................................2671.00 41.00
COFFEE......................................................................239.55 1.90
KRUG .......................................................................1742.40 9.20
WHEAT .......................................................................147.43 1.05
COMMODITIES CREDIT&RATES
BoE IR Overnight .........................................................................0.500 0.00
BoE IR 7 days..............................................................................0.500 0.00
BoE IR 1 month...........................................................................0.500 0.00
BoE IR 3 months.........................................................................0.500 0.00
BoE IR 6 months.........................................................................0.500 0.00
LIBOR Euro - overnight...............................................................0.868 -0.01
LIBOR Euro - 12 months .............................................................2.065 0.00
LIBOR USD - overnight ...............................................................0.142 0.00
LIBOR USD - 12 months..............................................................0.910 0.00
HaIifax mortgage rate..................................................................3.990 0.00
Euro Base Rate ............................................................................1.500 0.00
Finance house base rate.............................................................1.000 0.00
US Fed funds................................................................................0.250 0.00
US Iong bond yieId ......................................................................3.750 0.55
European repo rate......................................................................0.749 -0.01
Euro Euribor.................................................................................1.171 0.00
The vix index................................................................................32.07 3.83
The baItic dry index.....................................................................2.173 0.01
Markit iBoxx ...............................................................................232.57 0.78
Markit iTraxx...............................................................................172.43 -6.03
BAE Systems . . . . . .282.6 -2.9 369.9 248.1
Chemring Group. . . .534.5 -6.0 736.5 485.0
Cobham . . . . . . . . . . .171.6 1.1 245.6 168.5
Meggitt . . . . . . . . . . . .362.4 -4.6 397.6 303.9
QinetiQ Group. . . . . .116.0 -1.5 136.3 96.7
RoIIs-Royce Group. .689.0 -6.5 700.0 557.5
Senior. . . . . . . . . . . . .157.2 -2.1 190.6 131.1
UItra EIectronics . . .1602.0 -28.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .190.3 -7.3 245.0 157.0
BarcIays. . . . . . . . . . .176.4 0.3 333.6 138.9
HSBC HoIdings. . . . .523.0 -2.0 730.9 473.6
LIoyds Banking Gr . . .32.4 -0.8 72.2 27.6
RoyaI Bank of Sco . . .24.1 -0.2 49.0 19.7
Standard Chartere .1429.0 10.5 1950.0 1169.5
AG Barr . . . . . . . . . .1229.0 7.0 1395.0 1031.0
Britvic. . . . . . . . . . . . .311.4 -5.6 503.5 289.9
Diageo . . . . . . . . . . .1280.0 -12.0 1307.0 1112.0
SABMiIIer. . . . . . . . .2260.5 -11.0 2340.0 1979.0
AZ EIectronic Mat . . .249.5 3.1 338.1 206.1
Croda Internation . .1793.0 -20.0 2081.0 1367.0
EIementis. . . . . . . . . .132.1 -3.2 187.4 104.8
Johnson Matthey . .1765.0 -15.0 2119.0 1523.0
Victrex . . . . . . . . . . .1152.0 -32.0 1590.0 1025.0
YuIe Catto & Co. . . . .168.0 -3.0 253.0 148.0
C/$ 1.3737 0.0139
C/ 0.8731 0.0044
C/ 105.74 1.4133
/C 1.1454 0.0057
/$ 1.5746 0.0075
/ 121.14 1.0016
FTSE100
5436.70
29.66
FTSE250
10250.39
88.12
FTSEALL SHARE
2805.16
15.88
DOW
11397.61
246.88
NASDAQ
2614.92
52.93
S&P500
1200.86
23.72
Rexam . . . . . . . . . . . .323.5 -3.0 400.0 299.8
RPC Group . . . . . . . .344.9 3.2 384.8 215.4
Smiths Group . . . . . .931.5 -20.0 1429.0 907.5
Brown (N.) Group . . .270.6 -3.3 311.2 252.5
Carpetright . . . . . . . . .495.2 -19.8 835.5 472.5
Debenhams . . . . . . . . .64.2 -0.9 77.4 51.2
Dignity . . . . . . . . . . . .853.0 3.5 854.5 633.0
Dixons RetaiI . . . . . . .12.2 -0.3 28.5 10.6
DuneImGroup. . . . . .461.1 -20.5 550.0 383.9
HaIfords Group . . . . .323.7 -4.2 459.7 268.6
Home RetaiI Group. .121.5 -3.1 235.0 105.1
Inchcape . . . . . . . . . .323.0 -8.3 425.4 268.1
JD Sports Fashion . .841.0 -4.0 1030.0 753.5
Kesa EIectricaIs . . . . .94.2 -0.9 174.0 80.0
Kingfisher . . . . . . . . .259.9 0.4 287.1 217.0
Marks & Spencer G. .334.9 2.5 427.5 301.8
Mothercare . . . . . . . .203.0 -4.0 627.5 179.6
Next . . . . . . . . . . . . .2574.0 -36.0 2649.0 1868.0
Sports Direct Int . . . .231.9 1.9 266.2 125.5
WH Smith. . . . . . . . . .541.0 -8.0 557.5 433.8
Smith & Nephew. . . .580.5 -6.0 742.0 521.0
Synergy HeaIth . . . . .855.5 -15.5 981.0 736.0
Barratt DeveIopme . . .89.5 -0.8 119.0 67.5
BaIfour Beatty . . . . . .257.5 -2.7 357.3 228.6
GaIIiford Try. . . . . . . .441.0 7.7 530.0 276.5
Kier Group. . . . . . . .1366.0 -10.0 1418.0 1097.0
Drax Group . . . . . . . .458.0 -12.3 536.5 353.6
SSE. . . . . . . . . . . . . .1349.0 -3.0 1423.0 1108.0
Domino Printing S . .539.5 17.5 705.0 434.3
HaIma . . . . . . . . . . . . .335.5 -10.2 429.6 306.3
Laird . . . . . . . . . . . . . .139.5 -5.5 207.0 127.9
Morgan CrucibIe C . .262.3 -4.2 357.1 222.3
Oxford Instrument . .787.0 -38.0 1010.0 495.0
Renishaw. . . . . . . . . .871.5 -25.5 1886.0 845.0
Spectris . . . . . . . . . .1164.0 -20.0 1679.0 1039.0
Aberforth SmaIIer . . .521.5 -4.5 714.0 508.5
AIIiance Trust . . . . . .335.6 -1.1 392.7 310.2
Bankers Inv Trust . . .373.0 -3.0 428.0 346.5
BH GIobaI Ltd. GB .1200.0 -5.0 1210.0 1058.0
BH GIobaI Ltd. US. . . .11.8 -0.2 12.2 10.4
BH Macro Ltd. EUR. . .19.1 -0.2 20.1 15.8
BH Macro Ltd. GBP 1990.0 -2.0 2070.0 1630.0
BH Macro Ltd. USD. . .18.9 -0.1 20.1 15.8
BIackRock WorId M .615.5 -16.0 815.5 574.5
BIueCrest AIIBIue . . .168.6 -1.4 176.2 162.4
British Assets Tr . . . .115.9 -2.4 140.5 109.0
British Empire Se . . .449.0 0.0 533.0 409.9
CaIedonia Investm .1527.0 -22.0 1928.0 1470.0
City of London In . . .280.1 -2.1 306.9 257.0
Dexion AbsoIute L . .133.9 -1.0 151.0 130.0
Edinburgh Dragon . .220.6 -0.3 262.1 201.4
Edinburgh Inv Tru. . .459.3 -7.0 492.2 414.9
EIectra Private E . . .1375.0 -18.5 1755.0 1287.0
F&C Inv Trust . . . . . .284.4 -1.5 327.9 261.5
FideIity China Sp. . . . .76.7 -0.4 128.7 70.0
FideIity European . .1013.0 2.0 1287.0 912.0
HeraId Inv Trust. . . . .458.0 -6.0 545.5 419.0
HICL Infrastructu. . . .117.0 0.1 121.3 112.7
Impax Environment . .93.5 0.0 130.5 88.5
JPMorgan American.820.0 -10.0 916.0 721.5
JPMorgan Asian In . .190.0 3.0 250.8 170.1
JPMorgan Emerging.523.0 -1.0 639.0 480.1
JPMorgan European.756.0 7.0 983.5 692.5
JPMorgan Indian I. . .366.0 -5.2 502.0 350.0
JPMorgan Russian .475.5 4.0 755.0 415.1
Law Debenture Cor. .346.0 -3.2 385.0 309.8
MercantiIe Inv Tr . . . .918.0 -15.0 1137.0 856.5
Merchants Trust . . . .368.2 -3.6 431.8 347.0
Monks Inv Trust . . . .322.0 -4.2 367.9 298.1
Murray Income Tru . .613.5 -7.5 673.0 568.0
Murray Internatio . . .883.0 1.0 991.5 818.5
PerpetuaI Income . . .250.0 -3.0 276.0 234.8
PersonaI Assets T .33400.0 90.0 33725.030210.0
PoIar Cap TechnoI . .339.1 2.6 391.2 299.5
RIT CapitaI Partn. . .1302.0 -12.0 1334.0 1127.0
Scottish Inv Trus. . . .448.0 0.0 524.0 417.0
Scottish Mortgage . .651.0 -3.0 781.0 586.5
SVG CapitaI . . . . . . . .210.0 3.4 279.8 187.2
TempIe Bar Inv Tr . . .851.0 -13.0 952.0 791.0
TempIeton Emergin .549.5 -0.5 689.5 497.0
TR Property Inv T . . .171.0 2.8 206.1 150.0
TR Property Inv T . . . .74.7 -0.9 94.0 69.5
Witan Inv Trust . . . . .432.0 -10.0 533.0 401.5
3i Group. . . . . . . . . . .204.5 2.5 340.0 184.1
3i Infrastructure. . . . .119.8 -0.1 125.2 112.9
Aberdeen Asset Ma .187.1 -2.9 240.0 167.8
Ashmore Group . . . .320.6 -7.2 420.0 301.5
Brewin DoIphin Ho . .121.3 0.6 185.4 113.7
CameIIia. . . . . . . . . .9050.0 -25.010950.0 8862.5
CharIes TayIor Co. . .138.0 3.9 193.0 122.0
City of London Gr . . . .72.0 -1.0 93.6 72.0
City of London In . . .335.0 -1.5 461.5 321.3
CIose Brothers Gr. . .729.0 -1.5 888.5 656.5
CoIIins Stewart H . . . .63.0 0.1 90.8 59.0
EvoIution Group . . . . .82.8 1.5 94.0 62.3
F&C Asset Managem .61.6 -1.3 92.9 56.1
Hargreaves Lansdo .507.0 -4.0 646.5 402.5
HeIphire Group . . . . . . .2.9 -0.2 34.0 2.2
Henderson Group. . .124.1 2.9 173.1 95.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .422.2 -9.6 570.5 383.7
IG Group HoIdings . .458.6 -7.6 553.0 393.6
Intermediate Capi . . .229.7 -6.9 360.3 197.9
InternationaI Per . . . .254.9 0.8 388.8 196.5
InternationaI Pub. . . .115.4 -0.1 118.3 108.6
Investec . . . . . . . . . . .366.7 -1.1 538.0 331.8
IP Group. . . . . . . . . . . .65.0 2.8 65.3 27.9
Jupiter Fund Mana . .221.1 -3.3 337.3 184.9
Liontrust Asset M . . . .61.0 -2.5 94.3 60.0
LMS CapitaI . . . . . . . . .59.5 -1.3 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .896.5 -27.0 1076.0 685.5
Lonrho . . . . . . . . . . . . .15.0 0.0 19.8 12.5
Man Group. . . . . . . . .160.8 3.2 311.0 150.0
Paragon Group Of . .156.8 -0.5 206.1 134.6
Provident Financi . .1052.0 -10.0 1124.0 728.5
Rathbone Brothers.1055.0 15.0 1257.0 866.0
Record . . . . . . . . . . . . .24.0 0.0 46.5 20.3
RSM Tenon Group . . .22.3 1.5 66.3 20.3
Schroders . . . . . . . .1328.0 -17.0 1922.0 1183.0
Schroders (Non-Vo .1132.0 -15.0 1554.0 970.0
TuIIett Prebon . . . . . .365.6 -0.9 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .181.1 -0.1 204.1 147.4
CabIe & WireIess . . . .35.6 -0.5 54.3 31.3
CabIe & WireIess . . . .27.2 0.1 76.9 26.4
COLT Group SA . . . . .94.5 -0.5 156.2 94.3
KCOM Group. . . . . . . .70.5 0.5 84.0 47.5
TaIkTaIk TeIecom . . .132.0 1.4 168.3 119.8
TeIecomPIus. . . . . . .740.0 11.5 740.0 375.0
Booker Group . . . . . . .76.6 0.1 77.9 53.2
Greggs . . . . . . . . . . . .495.4 -6.1 550.5 429.1
Morrison (Wm) Sup .304.6 -0.1 308.3 262.7
Ocado Group. . . . . . . .87.6 -2.4 285.0 87.0
Sainsbury (J) . . . . . . .300.3 1.6 391.5 263.5
Tesco . . . . . . . . . . . . .406.1 -2.9 439.0 356.3
Associated Britis . .1084.0 -15.0 1182.0 940.0
Cranswick . . . . . . . . .685.0 10.5 896.0 588.5
Dairy Crest Group. . .347.8 0.3 424.9 325.0
Devro . . . . . . . . . . . . .252.8 -2.2 296.9 218.0
Premier Foods. . . . . . . .4.8 0.3 35.1 3.8
Tate & LyIe. . . . . . . . .645.0 -4.0 656.9 490.2
UniIever . . . . . . . . . .2084.0 -25.0 2120.0 1777.0
Mondi . . . . . . . . . . . . .493.9 -2.2 664.0 450.1
Centrica . . . . . . . . . . .305.3 -4.6 345.8 282.6
InternationaI Pow . . .326.1 -0.4 448.6 279.4
NationaI Grid . . . . . . .638.0 5.5 649.5 530.0
Pennon Group. . . . . .684.5 -0.5 737.5 584.5
Severn Trent . . . . . .1524.0 -5.0 1571.0 1333.0
United UtiIities . . . . .605.0 -0.5 631.5 543.5
Cookson Group . . . . .477.5 -17.0 724.5 395.8
DS Smith . . . . . . . . . .195.0 -1.0 266.2 163.4
Price Chg High Low
BeIIway. . . . . . . . . . . .677.5 -2.5 753.5 511.0
BerkeIey Group Ho .1170.0 -22.0 1299.0 789.5
Bovis Homes Group.449.9 -5.0 465.0 326.5
Persimmon . . . . . . . .483.4 -1.9 502.5 336.5
Reckitt Benckiser . .3348.0 -6.0 3648.0 3015.0
Redrow. . . . . . . . . . . .119.0 -0.7 139.0 98.4
TayIor Wimpey . . . . . . .36.9 -0.1 43.3 22.3
Bodycote . . . . . . . . . .272.2 -0.8 397.7 225.6
Charter Internati . . . .863.5 0.5 876.5 538.5
Fenner . . . . . . . . . . . .334.9 -4.5 422.5 256.0
IMI . . . . . . . . . . . . . . . .784.0 -25.5 1119.0 636.5
MeIrose . . . . . . . . . . .320.1 -2.9 365.4 265.7
Northgate. . . . . . . . . .246.9 6.9 346.7 202.0
Rotork . . . . . . . . . . .1580.0 -20.0 1858.0 1501.0
Spirax-Sarco Engi. .1779.0 -10.0 2063.0 1649.0
Weir Group . . . . . . .1646.0 -40.0 2218.0 1375.0
Ferrexpo. . . . . . . . . . .330.1 -8.9 499.0 238.7
TaIvivaara Mining . . .208.0 -10.4 622.0 205.0
BBAAviation . . . . . . .182.5 2.9 240.8 156.0
Stobart Group Ltd. . .126.0 -1.0 163.6 122.0
AdmiraI Group. . . . .1262.0 -1.0 1754.0 1227.0
Haynes PubIishing . .215.0 2.0 257.0 203.5
Huntsworth . . . . . . . . .60.0 0.1 85.0 56.0
Informa. . . . . . . . . . . .340.2 -10.7 461.1 313.9
ITE Group. . . . . . . . . .178.5 -2.7 258.2 157.7
ITV. . . . . . . . . . . . . . . . .62.4 -2.6 93.5 51.7
Johnston Press. . . . . . .4.6 0.1 13.5 4.3
MecomGroup . . . . . .138.0 -2.8 310.0 135.3
Moneysupermarket. .101.9 -1.6 120.4 75.7
Pearson . . . . . . . . . .1157.0 -16.0 1207.0 926.0
PerformGroup . . . . .202.0 0.0 234.5 150.0
Reed EIsevier . . . . . .524.0 -11.0 590.5 461.3
Rightmove . . . . . . . .1248.0 -33.0 1307.0 736.5
STV Group. . . . . . . . . .97.0 0.4 168.0 90.3
Tarsus Group . . . . . .142.0 4.0 165.0 112.5
Trinity Mirror . . . . . . . .45.5 0.8 108.0 37.5
UBM . . . . . . . . . . . . . .465.2 -23.8 725.0 416.0
UTV Media . . . . . . . . .126.3 3.8 150.0 101.0
WiImington Group . . .89.5 -0.9 183.0 82.5
WPP . . . . . . . . . . . . . .640.0 -8.5 846.5 578.0
YeII Group . . . . . . . . . . .3.9 0.0 16.1 3.7
African Barrick G . . .554.5 9.5 618.5 393.5
AIIied GoId Minin . . .154.7 -7.7 281.3 34.4
AngIo American . . .2304.0 -57.5 3437.0 2138.5
AngIo Pacific Gro . . .255.5 -8.4 369.3 237.9
Antofagasta. . . . . . .1078.0 -40.0 1634.0 900.5
AmIin . . . . . . . . . . . . .312.5 1.7 427.0 270.6
BeazIey. . . . . . . . . . . .122.6 2.5 139.2 109.6
CatIin Group Ltd. . . .390.0 -6.9 421.4 331.5
Hiscox Ltd. . . . . . . . . .387.4 0.4 424.7 340.5
Jardine LIoyd Tho. . .675.5 -6.5 709.0 571.5
Lancashire HoIdin . . .720.0 2.0 733.5 529.0
RSA Insurance Gro. .114.3 -0.7 143.5 106.0
Aviva. . . . . . . . . . . . . .340.0 1.0 477.9 275.3
LegaI & GeneraI G . . .104.5 -0.6 123.8 89.8
OId MutuaI . . . . . . . . .108.8 -0.4 144.8 98.1
Phoenix Group HoI . .522.5 0.0 699.5 451.1
PrudentiaI . . . . . . . . .621.5 -10.5 777.0 509.0
ResoIution Ltd. . . . . .272.8 -0.2 316.1 211.3
St James's PIace. . . .345.1 5.3 376.0 236.2
Standard Life. . . . . . .214.4 0.7 244.7 172.0
4Imprint Group . . . . .232.0 15.0 295.0 200.0
Aegis Group . . . . . . .133.1 -5.4 163.5 119.4
BIoomsbury PubIis. . .98.5 -1.5 138.0 95.1
British Sky Broad . . .665.0 -11.0 850.0 618.5
Centaur Media. . . . . . .40.0 -0.5 73.0 36.0
Chime Communicati.205.0 1.5 298.5 173.0
Creston . . . . . . . . . . . .84.0 0.0 121.0 72.0
DaiIy MaiI and Ge . . .400.4 -6.4 594.5 343.4
Euromoney Institu . .611.0 0.0 736.0 522.5
Future. . . . . . . . . . . . . .10.1 -0.1 30.0 9.8
Aquarius PIatinum . .191.6 -5.0 419.0 163.1
BHP BiIIiton. . . . . . .1910.0 -37.0 2631.5 1667.0
Centamin Egypt Lt . .104.4 3.7 197.1 89.7
Eurasian NaturaI . . .651.5 -11.0 1125.0 522.0
FresniIIo. . . . . . . . . .1629.0 -31.0 2150.0 1223.0
GemDiamonds Ltd. .198.7 0.7 306.0 179.8
GIencore Internat . . .408.0 -14.5 531.1 348.0
HochschiId Mining . .471.1 -3.9 680.0 397.0
Kazakhmys . . . . . . . .872.5 -27.5 1671.0 730.0
Kenmare Resources. .39.5 -1.0 59.9 18.4
Lonmin. . . . . . . . . . .1077.0 -20.0 1983.0 974.5
New WorId Resourc .507.0 2.0 1060.0 410.5
PetropavIovsk . . . . . .689.0 8.5 1165.0 543.5
RandgoId Resource 6450.0 -35.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3302.0 -43.5 4712.0 2712.5
Vedanta Resources 1206.0 -7.0 2559.0 948.0
Xstrata . . . . . . . . . . . .949.0 -25.1 1550.0 764.0
Inmarsat . . . . . . . . . . .456.0 -16.9 719.5 389.7
Vodafone Group . . . .173.4 -0.4 182.8 155.1
Genesis Emerging . .455.0 2.0 568.0 430.0
Afren. . . . . . . . . . . . . . .92.0 1.5 171.2 73.6
BG Group. . . . . . . . .1345.5 2.0 1564.5 1144.0
BP. . . . . . . . . . . . . . . .425.6 9.2 509.0 363.2
Cairn Energy . . . . . . .290.7 -8.0 469.7 261.4
EnQuest . . . . . . . . . . .104.2 0.7 158.5 86.6
Essar Energy . . . . . .286.0 4.0 589.5 235.1
ExiIIon Energy. . . . . .269.6 2.8 469.7 184.2
Heritage OiI . . . . . . . .226.5 -9.7 486.0 190.0
Ophir Energy. . . . . . .226.2 -8.8 299.0 184.5
Premier OiI. . . . . . . . .368.7 -4.3 535.0 310.0
RoyaI Dutch SheII . .2192.0 6.5 2326.5 1883.5
RoyaI Dutch SheII . .2241.0 18.0 2336.0 1890.5
SaIamander Energy .202.3 -2.3 317.6 182.3
Soco Internationa . . .336.2 2.4 400.0 279.8
TuIIow OiI . . . . . . . . .1375.0 -49.0 1493.0 945.5
Amec . . . . . . . . . . . . .876.0 15.0 1251.0 740.5
Hunting . . . . . . . . . . .633.0 -10.0 817.0 530.0
Kentz Corporation . .465.0 9.1 494.5 275.5
LampreII . . . . . . . . . . .224.0 -1.0 395.2 216.2
Petrofac Ltd. . . . . . .1335.0 -24.0 1685.0 1108.0
Wood Group (John) .571.0 -11.5 715.8 432.5
Burberry Group. . . .1262.0 -32.0 1600.0 959.5
PZ Cussons. . . . . . . .352.3 4.3 409.0 320.5
Supergroup . . . . . . . .668.0 3.0 1820.0 659.5
AstraZeneca . . . . . .2973.0 -29.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .280.4 0.4 309.7 210.1
Genus. . . . . . . . . . . .1008.0 -15.0 1111.0 800.0
GIaxoSmithKIine. . .1375.5 -2.5 1390.0 1127.5
Hikma Pharmaceuti .633.0 -3.5 900.0 555.5
Shire PIc. . . . . . . . . .2024.0 -38.0 2136.0 1454.0
CapitaI & Countie . . .172.5 -2.8 203.7 141.6
Daejan HoIdings . . .2649.0 -7.0 2954.0 2282.0
F&C CommerciaI Pr . .97.5 0.1 108.0 88.0
Grainger . . . . . . . . . . . .89.0 0.8 133.2 77.3
London & Stamford .119.9 0.6 140.0 112.9
SaviIIs. . . . . . . . . . . . .280.4 -7.4 427.1 256.2
UK CommerciaI Pro . .77.8 0.1 85.5 70.4
Unite Group. . . . . . . .173.6 -2.4 224.1 152.9
Big YeIIow Group . . .272.1 3.8 352.2 234.2
British Land Co. . . . .524.0 -1.0 629.5 452.0
CapitaI Shopping . . .337.3 -4.9 424.8 296.4
Derwent London . . .1646.0 -4.0 1880.0 1400.0
Great PortIand Es . . .361.4 -2.6 445.0 317.4
Hammerson. . . . . . . .417.5 2.7 490.9 353.0
Hansteen HoIdings. . .79.2 0.7 89.5 70.0
Land Securities G. . .706.0 -7.5 885.0 616.0
SEGRO. . . . . . . . . . . .238.5 1.7 331.3 210.1
Shaftesbury. . . . . . . .503.0 -5.0 539.0 431.7
Aveva Group . . . . . .1426.0 0.0 1799.0 1298.0
Computacenter . . . . .367.0 1.6 490.0 346.3
Fidessa Group. . . . .1670.0 40.0 2109.0 1409.0
Invensys. . . . . . . . . . .215.1 -1.5 364.3 199.6
Logica . . . . . . . . . . . . .87.7 -1.9 147.2 73.9
Micro Focus Inter . . .330.8 -14.1 426.2 239.4
Misys . . . . . . . . . . . . .257.8 4.3 420.2 214.9
Sage Group . . . . . . . .277.0 -1.8 302.0 231.7
SDL. . . . . . . . . . . . . . .674.5 -0.5 711.5 555.0
TeIecity Group. . . . . .580.5 1.0 592.0 430.0
Aggreko . . . . . . . . . .1729.0 1.0 2034.0 1394.5
Ashtead Group . . . . .154.0 1.7 207.9 99.4
Atkins (WS) . . . . . . . .525.0 -12.5 820.0 490.2
Babcock Internati . . .675.0 -2.5 733.0 513.5
Berendsen . . . . . . . . .441.8 -0.2 568.0 391.3
BunzI . . . . . . . . . . . . .792.0 -0.5 812.5 676.5
Cape . . . . . . . . . . . . . .462.4 -9.2 591.5 348.8
Capita Group. . . . . . .704.0 -9.0 794.5 635.5
CariIIion . . . . . . . . . . .357.0 -4.9 403.2 298.8
De La Rue . . . . . . . . .831.0 -15.5 854.5 549.5
DipIoma . . . . . . . . . . .307.3 -11.1 414.3 258.0
EIectrocomponents .211.2 -0.9 294.9 182.2
Experian. . . . . . . . . . .744.5 -11.5 833.5 665.0
FiItrona PLC . . . . . . . .350.5 0.5 385.5 227.5
G4S. . . . . . . . . . . . . . .219.9 -62.4 291.0 216.5
Hays . . . . . . . . . . . . . . .73.1 -1.3 133.6 66.6
Homeserve . . . . . . . .452.5 -8.4 532.0 408.0
Howden Joinery Gr. .115.3 -2.5 127.5 75.4
Interserve. . . . . . . . . .310.4 -5.6 341.3 183.5
Intertek Group. . . . .1927.0 -31.0 2148.0 1715.0
MichaeI Page Inte . . .357.5 -5.5 567.0 338.7
Mitie Group . . . . . . . .238.3 -2.5 244.0 194.1
Premier FarneII . . . . .172.1 0.9 308.8 144.5
Regus. . . . . . . . . . . . . .70.0 -0.4 119.0 64.0
RentokiI InitiaI . . . . . . .69.7 -0.3 104.9 64.8
RPS Group. . . . . . . . .169.6 -5.2 253.0 156.6
Serco Group . . . . . . .499.5 -16.5 633.0 490.9
Shanks Group. . . . . .106.3 -2.4 130.9 103.0
SIG . . . . . . . . . . . . . . . .96.9 0.9 153.5 83.8
SThree . . . . . . . . . . . .266.6 0.2 447.6 213.2
Travis Perkins . . . . . .835.0 -22.5 1127.0 715.0
WoIseIey . . . . . . . . .1659.0 -37.0 2261.0 1404.0
ARM HoIdings . . . . . .597.0 3.0 651.0 338.9
CSR . . . . . . . . . . . . . .185.0 -5.1 447.0 183.4
Imagination Techn . .462.6 -2.4 502.0 296.9
Pace . . . . . . . . . . . . . . .92.6 -1.0 231.8 88.1
Spirent Communica .125.8 -0.7 160.3 109.5
British American . .2801.5 -7.0 2871.0 2282.5
ImperiaI Tobacco . .2176.0 -33.0 2231.0 1784.0
Betfair Group. . . . . . .750.0 -20.0 1550.0 567.0
Bwin.party Digita . . .107.2 -2.3 280.9 100.6
CarnivaI . . . . . . . . . .2146.0 -4.0 3153.0 1742.0
Compass Group . . . .554.0 1.0 612.0 511.5
Domino's Pizza UK. .459.6 -6.1 586.0 377.0
easyJet. . . . . . . . . . . .354.1 -7.2 479.0 301.0
FirstGroup . . . . . . . . .326.1 -1.0 412.6 301.8
Go-Ahead Group. . .1481.0 21.0 1598.0 1104.0
Greene King . . . . . . .447.4 -1.7 518.0 410.0
InterContinentaI . . .1082.0 -8.0 1435.0 955.0
InternationaI Con . . .163.4 -3.1 305.0 141.6
JD Wetherspoon. . . .424.0 0.9 468.3 380.5
Ladbrokes . . . . . . . . .133.7 -0.1 155.3 114.0
Marston's. . . . . . . . . . .94.8 -0.7 117.1 84.6
MiIIennium& Copt . .410.4 1.0 600.5 375.6
MitcheIIs & ButIe. . . .240.8 0.8 361.0 216.4
NationaI Express . . .233.3 -2.5 270.2 219.6
Rank Group . . . . . . . .127.4 1.7 153.7 109.5
Restaurant Group. . .284.4 -3.1 335.0 254.9
Stagecoach Group . .248.0 -6.3 272.4 187.7
Thomas Cook Group .46.6 -2.7 204.8 33.7
TUI TraveI. . . . . . . . . .160.1 -5.3 271.9 137.2
Whitbread . . . . . . . .1627.0 12.0 1887.0 1409.0
WiIIiamHiII. . . . . . . . .241.5 -2.6 248.3 155.5
Abcam . . . . . . . . . . . .344.0 -4.0 460.0 307.0
AIbemarIe & Bond . .325.0 8.0 400.1 272.0
Amerisur Resource . .12.5 0.8 29.0 9.5
Andor TechnoIogy . .509.0 7.0 685.0 340.0
ArchipeIago Resou. . .70.0 0.0 79.0 32.3
ASOS . . . . . . . . . . . .1440.0 -40.0 2468.0 1198.0
AureIian OiI & Ga . . . .18.3 0.3 92.0 16.0
Avanti Communicat .311.0 -5.0 735.0 248.5
Avocet Mining . . . . . .250.5 -5.0 286.8 173.8
BIinkx . . . . . . . . . . . . .146.5 -4.8 158.0 70.5
Borders & Souther . . .50.9 1.1 73.0 43.5
BowLeven . . . . . . . . .116.8 -4.0 398.0 74.5
Brooks MacdonaId 1235.0 0.0 1372.5 940.0
Cove Energy . . . . . . . .85.5 -1.3 112.8 61.0
Daisy Group. . . . . . . .110.5 0.0 127.0 88.0
EMIS Group . . . . . . . .533.5 -6.5 580.0 393.0
Encore OiI . . . . . . . . . .77.5 -1.3 151.5 40.8
Faroe PetroIeum. . . .144.0 1.0 218.3 130.0
GuIfsands PetroIe. . .192.3 -4.5 401.5 142.5
GWPharmaceuticaI . .95.0 -1.5 130.0 83.0
H&T Group. . . . . . . . .339.8 4.8 395.0 277.0
Hamworthy . . . . . . . .512.0 2.0 705.0 373.8
Hargreaves Servic .1060.0 -20.0 1080.0 676.0
HeaIthcare Locums . . . .4.8 0.5 4.8 4.5
Immunodiagnostic . .920.0 -2.0 1218.0 768.5
ImpeIIamGroup . . . .330.1 0.1 387.5 155.0
James HaIstead. . . . .465.0 0.0 495.0 345.5
KaIahari MineraIs . . .249.5 1.0 301.0 161.5
London Mining . . . . .334.5 3.3 436.5 283.0
Lupus CapitaI . . . . . . .96.9 -1.1 150.0 86.0
M. P. Evans Group . .405.0 0.0 500.5 371.0
Majestic Wine . . . . . .417.0 -8.8 510.0 336.0
May Gurney Integr . .289.0 -5.5 300.0 211.0
Monitise . . . . . . . . . . . .37.0 -0.5 39.0 18.5
MuIberry Group. . . .1400.0 0.0 1920.0 520.0
Nanoco Group. . . . . . .42.5 -8.0 115.8 40.0
NauticaI PetroIeu . . .310.0 -9.0 547.0 223.5
NichoIs. . . . . . . . . . . .550.5 -6.0 579.0 410.0
Numis Corporation. . .90.0 -1.5 137.8 89.0
Pan African Resou . . .12.3 0.3 14.5 9.4
Patagonia GoId . . . . . .54.0 1.0 70.0 20.3
Prezzo . . . . . . . . . . . . .53.8 -2.5 71.5 53.3
Pursuit Dynamics . . .197.5 -2.3 700.0 160.5
Rockhopper ExpIor .204.3 -3.5 386.0 141.0
RWS HoIdings. . . . . .427.5 2.5 479.8 266.5
Songbird Estates . . .120.0 3.0 160.3 110.3
VaIiant PetroIeum . . .490.0 0.0 750.0 435.0
Young & Co's Brew. .590.0 -32.5 712.0 530.0
PremierFoods........4.8 6.3
CentaminEgyptLtd .104.4 3.7
DominoPrintingSc .539.5 3.4
Northgate..........246.9 2.9
FidessaGroup.....1670.0 2.5
HendersonGroup ...124.1 2.4
BP................425.6 2.2
BeazIey ...........122.6 2.1
ManGroup.........160.8 2.0
KentzCorporation ..465.0 2.0
G4S...............219.9 -22.1
ThomasCookGroup .46.6 -5.4
UBM ..............465.2 -4.9
TaIvivaaraMining ...208.0 -4.8
AIIiedGoIdMining ..154.7 -4.7
OxfordInstruments .787.0 -4.6
DuneImGroup......461.1 -4.3
HeritageOiI ........226.5 -4.1
MicroFocusIntern ..330.8 -4.1
ITV ................62.4 -3.9
Risers FaIIers
MAINCHANGESUK350
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
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Tsy 3.250 11. . . . .100.25 -0.13 103.0 100.3
Tsy 5.000 12 . . . .101.70 -0.04 106.1 101.7
Tsy 5.250 12 . . . .102.96 -0.02 107.5 103.0
Tsy 9.000 12 . . . .106.66 0.00 114.6 106.5
Tsy 4.500 13 . . . .105.39 0.01 108.8 105.3
Tsy 2.500 13. . . . .284.11 -0.02 287.7 277.6
Tsy 8.000 13. . . . .114.21 0.00 120.7 114.1
Tsy 5.000 14. . . . .111.76 0.06 114.1 109.2
Tsy 8.000 15 . . . .127.64 0.09 131.3 123.7
Tsy 7.750 15 . . . .101.50 -0.42 108.8 101.3
Tsy 4.750 15. . . . .113.89 0.11 114.8 108.6
Tsy 4.000 16. . . . .112.23 0.15 113.4 104.9
Tsy 2.500 16 . . . .340.43 0.11 342.0 310.2
Tsy 12.000 17 . . .124.00 0.02 134.0 122.5
Tsy 1.250 17. . . . .114.21 0.17 115.3 106.7
Tsy 8.750 17 . . . .138.94 -0.09 141.9 132.9
Tsy 5.000 18. . . . .119.37 0.35 121.0 109.7
Tsy 4.500 19. . . . .116.67 0.46 118.8 105.4
Tsy 3.750 19. . . . .111.16 0.51 113.5 99.4
Tsy 2.500 20 . . . .350.24 0.35 355.6 312.4
Tsy 4.750 20. . . . .118.71 0.52 121.4 106.6
Tsy 8.000 21 . . . .147.43 0.53 151.8 133.8
Tsy 4.000 22. . . . .113.11 0.71 115.6 99.0
Tsy 1.875 22 . . . .122.14 0.38 125.4 111.3
Tsy 2.500 24. . . . .311.94 0.31 320.1 273.5
Tsy 5.000 25 . . . .124.18 0.75 126.9 107.4
Tsy 4.250 27. . . . .115.55 0.70 118.1 97.9
Tsy 1.250 27. . . . .116.51 0.12 121.0 104.6
Tsy 6.000 28 . . . .139.76 0.68 142.9 119.5
Tsy 4.750 30 . . . .122.74 0.82 125.6 103.0
Tsy 4.125 30 . . . .295.82 0.25 305.4 261.2
Tsy 4.250 32. . . . .114.83 0.87 117.9 96.0
Tsy 4.250 36. . . . .114.69 0.94 117.6 95.0
Tsy 4.750 38 . . . .123.78 0.97 126.9 102.8
Tsy 4.500 42 . . . .120.20 1.08 123.0 98.9
% %
ALTERNATIVE ENERGY
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Wealth Management | Markets
W
HILE looking at trends in chart
patterns is always a useful exer-
cise when dealing with com-
modities, it is important that it is
not the be all and end all of a traders strat-
egy. Of course there are global macro influ-
ences that can drive commodity prices
copper being driven as a proxy for infra-
structure building, gold as a haven curren-
cy in times of investor risk aversion being
prominent examples. But commodity
prices are also influenced by the internal
policies of the commodity clearing houses
themselves.
When a clearing house such as the CME
increases its margin requirements for
futures on a commodity, it can have the
effect of deleveraging that trade and trig-
gering a sell off. Though these require-
ments will not necessarily affect the
margin payment required from your CFD
provider, they do of course affect the unde-
lying asset on which you are taking the con-
tract.
An example of the effect that clearing
house policy can have on a commodities
market can be seen from the price action
following CME moves in margin require-
ments for gold in August (see chart, below
right.) Following periods of market volatili-
ty due to haven flows into the yellow metal,
the CME raised its margin requirements
twice. As you can see in the chart, this trig-
gered a gold sell off.
PREDICTING A MARGIN CHANGE
Given the effects that a large margin hike
can have on a price, how can traders pre-
dict a margin move?
CME has stated that it has a policy of
making changes in a way that they are
telegraphed to the market, and in doing so
give participants notice of the effects. The
clearing house typically takes a mecha-
nised approach to margins looking at
interday monitoring of market volatility.
Rate changes can
trigger a sell-off,
writes Craig Drake
In Trading Places, Duke and Duke were hit by a margin call on frozen orange juice
Shock margin hikes can
hurt commodity traders
I
NVESTORS have placed considerable faith in China over
the past few years. Many remain convinced that the
countrys growing middle class (estimated to be around
300m people) is ready to step in and take up the slack as
US and European economies slow. But while Chinas econom-
ic growth is likely to continue to outstrip that of developed
countries for years to come, it still has significant problems to
deal with.
Its manufacturing base is tied closely to its export market
with its biggest customers being the US and Europe. Given
the ongoing European debt crisis, austerity measures, high
US unemployment and moribund housing market, con-
sumers in the US, Europe and UK are likely to be cutting
their spending for the foreseeable future. So until domestic
demand in China increases significantly, its manufacturing
base is likely to come under severe pressure. Meanwhile,
there is evidence that Western manufacturers are experi-
encing a sharp slowdown in Chinese sales. Although luxury
brands have done spectacularly well over the past few
years, many are now scaling back expansion plans. This is
hardly surprising considering that despite recent wage
growth average Chinese per capita personal income is
roughly 20 per cent of that in Europe.
Last week, the latest update on the Chinese trade balance
was released. The surplus narrowed to $14.5bn in
September from $17.8bn previously. Growth in both exports
and imports slowed significantly. On Friday, we heard that
both CPI and PPI fell for the second consecutive month. But
underlying the headline inflation numbers was the unpalat-
able fact that food prices rose 13.4 per cent year-on-year.
This remains a major issue for the Chinese administration, as
do concerns of a bursting real estate bubble and a possible
banking crisis due to bad loans made to over-indebted local
governments.
Looking at the iShares FTSE China 25 ETF, back in August
there was a sharp break of the downward-sloping trend line
which had held as support since the summer of 2009. The
index has since snapped back following the announcement
that the domestic arm of Chinas sovereign wealth fund is
buying shares in its four largest banks. But the trend line is
now acting as resistance, and buying pressure so far hasnt
been strong enough to get a close above 35. It is worth
keeping an eye on this over the coming weeks.
CHINA FACING
WALL IN HUNT
FOR GROWTH
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
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But it also takes into account qualitative
factors such as seasonality and whats in
the news headlines for example, in the
past it has hiked margins on crude oil
ahead of major hurricanes, aiming to
reduce the risk of default by traders in the
inevitable period of higher volatility.
But whatever the volatility-calming aspi-
rations of rate setters, they do unavoidably
affect prices. Especially in our current cli-
mate of big market movements. As mar-
gins are increased, traders especially
those that have been caught on the wrong
side of the market will liquidate their
positions. In doing so, they exacerbate
what are already big moves.
Predicting a margin hike is not an exact
science. But CFD traders should be wary of
one being on the horizon in a particularly
volatile market. But in such a climate, they
should always be analysing their exposure
to all potential risk.
CITYA.M. 18 OCTOBER 2011 23
Wealth Management | CFDs
01 Aug 05Aug 09Aug 13Aug 17Aug 21 Aug 25Aug 29Aug
1,920
1,880
1,840
1,800
1,760
1,720
1,680
1,640
1,600
ANALYSIS l Effect of CME gold margin hikes
$/oz
Receive 200 trading credit
*

when you deposit 1000 into your
NEW spread betting account
*Deposit 1000 and place three trades at 3 per point or more
before 31st October to claim your 200 trading credit.
Terms and Conditions apply.
Youre better off
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Spread betting and CFD trading can result in losses that exceed your initial deposit.
Wealth Management | Contracts for Difference
Beware of the
dragon if you
trade copper
Nothing can take away the inuence
of Chinese growth on the demand for
key commodities, writes Philip Salter
C
OPPER has been rallying on the
back of hopes that the politi-
cians of Europe might carve
out a plan to avoid the sys-
temic sovereign and banking crisis
that threatens the continent. But as
important as European salvation is,
the linchpin of coppers price lies
thousands of miles away in China.
ENTER THE DRAGON
Metal Bulletins editor Alex Harrison,
says copper prices got absolutely sav-
aged in the flight to safety at the
start of August, when investors sold
on fears that a financial crisis in the
Eurozone would sink banks, and
impair global growth. He notes that
copper on an official three-month
basis at the London Metal Exchange
(LME) dropped to $6,810/12 per tonne
on 4 October, over $3,000 down on
the price on 1 August, when it traded
at $9,846/47. It has since moved back
to over $7,500 and Harrison thinks it
may have been oversold in the panic.
The use of copper in electrical
wires, roofing, plumbing and indus-
trial machinery makes it is a
proxy trade for, or against, global
growth. Will Hedden of IG
Markets says this can be covered
by one word: China. Sales trad-
er Hedden sees lots of move-
ments in copper in relation to
Chinese data releases, noting
that traders who are aware of
these are better positioned to
take advantage of the moves
in this market. This morn-
ings Chinese third quarter
GDP results are a case in point.
Hedden says the recent
volatile nature of copper has
meant that IG Markets has seen
more short-term trading than
long. This is a good way to
approach the trade, as the daily
range on the Comex High Grade con-
tract can often exceed 1,000 points.
As such, he advises traders to be wary
of their stop loss placement.
UPBEAT ON COPPER
Elliott Winner of Capital Spreads
says copper has been trading in a
bullish channel for around a week
now, suggesting it is trending
upwards. He thinks on a technical
basis there is potential for it to go
higher. Harrison thinks it is worth
noting that until the sell-off in
August, bears have been getting
absolutely hammered in this market
ever since 2009. Also, Harrison notes:
In the period of currency devalua-
tion that will follow the current debt
crisis, previous experience suggests
that real assets such as copper are
likely to hold their value.
AN EGGS AND BASKET CASE
That China is the great hope for glob-
al economy is demonstrative of the
shifting balance in global economic
power. But questions remain: is
Chinas growth sustainable and will
internal (principally asset
price collapses) or external
(principally reduced demand)
factors result in a hard eco-
nomic landing?
A major shock to the
Chinese economy
would reverberate
across the globe, knock-
ing market bulls off
their hooves. For better
or worse, the world is
now reliant on a country
run by the Communist
Party of China (CPC), and
the price of copper is being
driven by how much is built
by edict from the party and
demand from the people.
O
VER the course of September,
goldsaw its price drop 11 per cent,
which was its biggest slump in
three years. However, with
renewed fears that European leaders
have bitten off more than they can chew
regarding the debt crisis, we could see
traders return to the trusty safe haven.
The yellow metal is also trading within a
bullish channel which is further reason
for potential upside. Capital CFDs quotes
Gold Rolling Daily $1,687.6-$1,688.0.
Although the share price of G4S took
a hit yesterday morning in light of the
rights issue, the downside wasnt any-
where close to the actual dilution that
was being seen. The market may still
have a little way to go on the downside
once the share actually starts trading
ex-rights, it also suggests theres a
degree of confidence that the merger
will deliver the promised synergies. IG
Markets quotes 226.2p-226.3p.
The half-year earnings of Home
Retail release should come under scruti-
ny from shareholders on Wednesday.
Thats if they want a break from licking
their wounds after a year of poor results
and profit warnings. After recently
being thrown into the least preferred
stock pile at Citigroup, it doesn't look
optimistic for the owner of Argos.
Capital CFDs quotes 125.4p-126.0p.
Mining giant Anglo American
updates the markets tomorrow and
traders will be watching carefully to see
if it can break from the bearish pattern
it has been in since hitting two and a
half year highs at the start of the year.
For now though, selling around 2,400p
with a target of 2,100p seems a sensible
play. Spread Co quotes 2,337.7p -
2,343.7p.
Philip Salter
THE TIPSTER
EURO CRISIS
INCUBATING
GOLDEN EGG
Apr 07 Sep07 Mar 08 Sep08 Feb09 Aug09 Feb10 Jul 10 Jan11 Jun11
4
3
2
ANALYSIS l 5 year copper (spot)
Source: Kitco
$/lb
2004 2005 2006 2007 2008 2009 2010 2011
60
55
50
45
40
ANALYSIS l HSBC Purchasing Managers Index (PMI)
Increasing rate
of growth
Increasing rate
of contraction
2011 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4
Consensus 8,169 8,593 8,961 9,065 9,058 9,030 9,040 8,923 8,875 8,232 8,209 8,133 8,183
view (weighted*)
Consensus 8,160 8,602 8,959 9,119 9,112 9,109 9,107 8,978 8,931 8,231 8,204 8,172 8,172
view (vanilla)
Lowest 5,000 6,614 7,165 7,300 7,300 8,100 8,100 8,100 8,100 6,283 6,283 6,283 6,283
Highest 9,991 10,031 10,031 11,000 11,500 11,200 11,200 11,200 11,200 9,921 9,921 9,921 9,921
%vanilla to weighted* -0.1% 0.1% 0.0% 0.6% 0.6% 0.9% 0.7% 0.6% 0.6% 0.0% -0.1% -0.1% -0.1%
*Analysts and desks that consistently call the market more accurately for both
the short term and the long term than their peers are weighted more highly. Source: Metal Bulletin Apex
FORECASTS FOR COPPER | CONSENSUS PREDICTS A RISE AND FALL ($/TONNE)
6.7687 6 7687 7
21.58 21 58
77.588 77 8
698.3
49.7 49.
89.7 9 7
13.4 .4 13
13.4 3.4
99.3 999.3 9
99.3
12.55
125.3 25.3
0.78544 0 78544
0.7854 5 0 7854 854
1.23 1
14.12566 14
9.653 9 653
9.653 9
9.653 653
0.223 0 223 0
0.99
15.36 115.36 1
17.29 .2 1
72.5 72
852.2 2.
21.99
698.3 98 8 3
0.36 0.36
71.4
79.8
36.2 3
19.7 19 19.7 19
9.68 .6
25.3 5.
69.5
2.16 2 16
9.95 9.9
0.99 .99
23.5 22
Better technology, better pricing
THINGS TO DO
LION KING 3D IMAX
Everyone loves a bit of Lion King, and
when it not only promises to be in 3D but
also extra big on the IMAX screen, this
offering is impossible to resist. 2-27 October,
child ticket: 11, adult ticket: 16.
LONDON ZOO
Always a great place to take the kids. Visit
the penguin beach, the otter enclosure
and the scary reptile house where croco-
diles lurk underwater. 10am-5.30pm,
Regents Park
ROLLER DISCO FAMILY JAM
This is a great way to graduate from baby
disco. For those over toddler-age, this is
the way to work off that extra energy: the
good old school roller disco. The
Renaissance rooms, Vauxhall. Every Saturday
11am-5pm, 7.50
BEGINNERS GARDENING CLASSES
Entry-level horticulture on how to grow
and take care of your plants. A lovely fami-
ly activity to get the young ones helping
out in your plot. 26 October, Chelsea Physic
Garden
THE THREE LITTLE PIGS AND THE WOLF
AND CAPTAIN GRIMEY
Londons only floating theatre is putting
on two delightful puppet shows both
familar and new. Oct 22-28, Puppet Theatre
Barge, www.puppetbarge.com
MAKE YOUR OWN GROMIT
This is a crash course in crafting the love-
able dog, Gromit, in a Gromit building
session, led by the senior model maker at
Aardman Animations. 12pm and 2pm, 22
October. Booking essential. The Cinema
Museum
POWER OF MAKING: FANTASTIC MR
FOX
Watch a special screening of
Fantastic Mr Fox at V&A before visit-
ing the puppets in the Power of
Making exhibition. 11am-12.30pm,
1.30pm-3pm, 22-30 October, Sackler centre,
Victoria & Albert museum
Below: take part in a
crash course in
Gromit-making at
The Cinema Museum.
Right: learn about the
early forms of
photography at
Somerset House
GETAWAYS
NORMAN CARR SAFARIS, ZAMBIA
Whisk your family away and experience a
safari in the South Luangwa National Park.
Theres a kids club: the Luangwa Lion Cubs,
which the young ones can join. Experience
a rangers life as theyll get the chance to
identify footprints and droppings with an
expert guide on the foot safari, meet the
local schoolchildren and learn a little of
the local language. And there are also les-
sons in African drumming around a camp-
fire, and wildlife quizzes that are put on
for the whole family. Bailey Robinson
www.baileyrobinson.com has 3 nights at Kapani
Camp and 4 nights at the Norman Carr Bush
Camps from 3,980 per person (under 12s would
be 3290 per child).
Includes BA flights to Lusaka, light aircraft trans-
fer to Mfuwe in the Luangwa National Park and
fully inclusive accommodation at the camps
including all activities and park fees.
CASTEL MONASTERO
Alternatively, keep it in Europe, and stay in
a gorgeous private villa or suites surround-
ed by Tuscan countryside, 23km from
Siena. Castel Monastero are putting on a
special half term package a mini-club for
the kids that will keep them occupied
from 9am-6pm, and a childrens cinema
every night. Or for family activities, theres
go-karting, horse riding, biking and tennis.
For more information visit
www.coxandkings.co.uk/europe.
A five night stay for a family of four will cost
6,790. Valid for stays from 21 October to 3
November.
DUBROVNIK SUN GARDENS
With temperatures staying in the balmy
late teens along the Adriatic Coast,
Dubrovnik Sun Gardens will offer October
sun for the family. On offer is six nights
accommodation, and unlimited, compli-
mentary access to the spa, sailing to Elafiti
islands and the old town of Dubrovnik
nearby.
For more information email
reservations.dubrovnik@radissonblu.com, or
phone +385 20 361 901
Its never too late to start planning the school break. Helena Lee rounds up Londons kid-friendly activities
Lifestyle | Half Term
Make the most of half term and
indulge your childish side as well
OUT OF OFFICE
HELENA LEE
ANTARCTIC PHOTOGRAPHY
EXHIBITION, BUCKINGHAM PALACE
A collection of photographs will be
exhibited together for the first time
to mark the centenary of Captain
Scotts ill-fated expedition to the
South Pole. The Heart of the Great
Alone: Scott, Shackleton and
Antarctic Photography documents
dramatic landscapes, harsh condi-
tions as well as the more
lighter moments between
the men on the journey.
21 October 2011-15 April
2012, The Queens
Gallery, Buckingham
Palace
TOKYOS FASHION
NIGHT OUT
If you happen to be
in Tokyo, join the
throng of interna-
tional Vogue editors,
including Anna
Wintour and the
UKs Alexandra
Shulman, for a shop-
ping event conceived
to boost morale after
the earthquake and
tsunami that ravaged Japan
earlier this year. www.fash-
ionsnightout.jp, 5 November
BLOOMSBURY FESTIVAL
This arts festival is a per-
fect way to kick off half-
term. With over 150
events that are
crammed in the parks
and squares of
Bloomsbury, the vari-
ety is staggering. There
are park trails in Russell
Square, Doctor Who in
comics at the Cartoon
Museum. A celebration
of everything
Bloomsbury has to offer.
www.bloomsburyfesti-
val.org.uk 21-23 October
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with Dr May call today on:
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MAGIC AND MAKE BELIEVE
Week of arts and crafts, performance and
storytelling. Shadow puppet storytelling,
magicians and magical crafts. 10.30am-
4pm, 24-28 October. Drop-in. Museum of
Childhood, www.vam.ac.uk/moc
THE FROZEN IMAGE
This all-day workshop is
aimed at teens. Theyll learn
about the early forms of
photography, make a cam-
era and take photos that are
inspired by the past. Age 13-
18, 27 October, Somerset House. Booking essen-
tial.
CHILD FRIENDLY EATS
JACKS
As well as serving a varied menu of kid-
friendly food (American pancakes, red
Thai curry, burgers), this relaxed joint in
Queens Park village has the added bene-
fit of being right next to Brondesbury
Park, so the kids can work up an appetite
beforehand. 101 Salusbury Road, NW6 6NH,
www.jacks-cafe.com
THE DINER
Waffles with jam and cream? Macaroni
cheese with spinach? Yes please! The
menu will attract the young and not-so-
young alike with its hearty, fun food.
Trendy, but great for children (they
hand out crayons and the like)
this place is a haven for North
London families with its branch-
es in Kensal Rise, Islington,
Camden, Shoreditch, and Soho.
www.goodlifediner.com
BYRON
The resounding success of Byron is not
just down to its burgers, but the friendly
and unique atmosphere in each of its
branches. Like the Diner, it has got the kit
for the kids great staff, crayons and a lot
of personality. Branches throughout London.
A new branch has opened on Northcote Road,
Battersea. www.byronhamburgers.com
FRANCO MANCA
These informal pizzerias fast have become
cult classics. Sourdough thin crust pizzas,
cooked in a minute in their wood-fired
ovens, with fresh ingredients made to
their own specifications. And the best
part? Children love them too. 4A Market
Row, Brixton and 144 Chiswick High Road,
www.francomanca.co.uk
Bread Street Kitchen
One New Change, St Paul's, EC4M 9AF,
020 7592 1616 breadstreetkitchen.com
FOOD hhhhi
SERVICE hhiii
ATMOSPHERE hhhhi
Cost per person without wine: 45
Y
OUD do well to forget that Bread
Street Kitchen is owned by Gordon
Ramsay. The restraint of his high-
end restaurants is nowhere to be
seen in the latest addition to his portfo-
lio, housed in the shiny shopping com-
plex One New Change. Its a number from
ex-Boxwood Caf head chef Stuart Gillies
too, and has slipped so easily into the fab-
ric of the City that you wonder how on
earth it wasnt there before. Because on
the night I visit, it is full. More than full
throbbing. And theres something of the
catwalk about it perhaps its the way
that there are two entrances, so you can
pop over from Jamie Olivers Barbecoa in
a skip and a jump, and prance through
the main artery of the restaurant right
through to the other side and down to
the bar. Or perhaps its because, post
Fashion Week success, Jonathan Saunders
had his after party here when the paint
was barely dry. Either way, this has firmly
established itself as a favourite in the
month that it has been open.
Bread Street Kitchen is not as formal as
the Wolseley nor as trendy as
Hawksmoor, but sits somewhere between
the two. Sliding into the green leather
banquettes, you can catch a glimpse of
hidden corners of the upstairs dining
room in the panelled mirrors that lean
over the tables on every wall. The catwalk
of black and white square tiles between
banquettes is well used those who strut
down it are lit by the collection of vintage
lamps between many an art deco pillar.
That Shoreditch glow of industrial yellow
from behind metal-mesh warehouse ban-
nisters gives the art deco a cutting trendi-
ness not seen much in the City.
Theres enough space between each
table to ensure intimacy, but close
enough to be part of the throng. Dinner
deux would be just as fun as dinner six
or sept.
The menu, split into three parts raw
bar, wood stone and hot stone is a mix
Less dough for better bread
of dishes both British, and adopted
British too; ceviche and rigatoni sit happi-
ly next to corned beef and bread and but-
ter pudding. After a brief consultation
with the waiter (friendly enough, but
could be more well-versed in whats on
the menu), and Marco, who chooses two
excellent carafes for us, the food comes
quickly. A scallop starter is standard; the
roar of bacon against the pallid, slightly
overcooked scallops, disappointing. But,
the pigs head croquettes are crisp
delights a gorgeous blood red in the
middle. Its worth ordering from the raw
bar as Bread Street home cures and mari-
nates its meats and fish. The stone bass
ceviche translucent and milky white
strips with rivulets of plum red, is topped
with a pale avocado cream that gilds the
clean bass on your tongue, and then
comes the crunch of salt. This is the best
of the sea.
The mains are even better. A ribeye
steak thick with a well-hung flavour
has a shiny slick from bone marrow cubes
melting on top, and slices of grilled yel-
low-fin tuna are seared perfectly light
yet almost meaty. Sides are mainly good:
brussel-tops like spring greens are vibrant
and crunchy with bacon. The hand-cut
chips are impressively uniform beauti-
fully crisp and then melting in the mid-
dle. Its a pity such care isnt taken with
the carrots sad, over-cuminned and
almost grey.
To finish: a staunchly British bread and
butter pud is a welcome hark-back to
childhood. Crunchy ridges of caramelized
bread that are smattered with raisins
insulate the milk-soaked slices under-
neath. Chocolate tart is the Karl Lagerfeld
of desserts glossy, skinny and elegant, so
smooth and shiny you could catch your
own reflection. Its accompanied by salt
caramel ice cream with a crumble of cin-
der toffee on top I could have eaten a
bowl of that on its own.
At this point, I must mention that the
state of the bathrooms do not match the
quality of food. Soggy tissues line the
marbled sink-tops and worse, I have an
unacceptably unwelcome view walking
past the gents due to the urinals position
something Ive not experienced at a
restaurant before and could be offensive,
not to mention, shocking, to someone
more sensitive than I.
However, moving on from that inci-
dent, should you wish to retire to the
sofas and relax to the walking jazz bass-
line then you can. We choose not to
because were too full to contemplate any
sort of digestif but I can say that Bread
Street Kitchen is great fun at reasonable
value. A fashionable and very welcome
addition to the City.
The shiny, new and
trendy Bread Street
Kitchen
Acclaimed head-chef
Stuart Gillies adds a
City-friendly dimension
to the Ramsay fold,
writes Helena Lee
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
T
HIS has been quite a week. I hope that
youll forgive me if I start by thanking
the wonderful staff of St Thomas hos-
pital for the birth of my son. A new
arrival is an event to celebrate so, with that
in mind, Im going to take a look at bubbles.
Champagne provides the model for what
is now called the Traditional Method, where
there is the addition of yeast and sugar to a
bottle of dry, still wine and a tightly sealed
cap is used to trap the carbon dioxide given
off during fermentation inside the bottle.
This gives explosive pressure and fizzy
wine. Its an expensive business as the dead
yeast has to be removed from each bottle
individually (otherwise Champagne would
be cloudy as indeed it used to be). A practi-
cal alternative is to do this second fermen-
tation inside a tank and to filter and bottle
the wine under pressure. Sparkling wine
purists tend to sneer at the Tank or
Transfer method but thanks to this, we
can enjoy good quality sparkling wine at a
reasonable price.
Champagne is made from a blend of
Chardonnay, Pinot Noir and Pinot Meunier
(yes, those last two are black grapes but
the colour in a grape is all in the skin so,
when pressed gently, grapes yield clear
juice) and this is a recipe that has been suc-
cessfully followed around the world. Terrific
Champagne style wines can be found in
Italy (Franciacorta), Australia (Yarra
Valley, Tasmania) and Spain (Cava). This
last one deserves a special mention. As well
as making sparkling wine with the tradi-
tional Champagne grapes, Cava is also fre-
quently made with local grapes Parellada,
Xarel-lo and Macabeo, which give a distinc-
tive, earthy style.
On the more affordable side, and moving
away from Champagne in style, is Prosecco
from Italy (made from the Prosecco grape,
the best examples are from Valdobbiadene
in Veneto) or, a personal favourite of mine,
Lindauer from New Zealand (where they
sneak a bit of Chenin Blanc into the blend
to give it some zip) both of which are per-
fect for parties.
There can be
only bubbles for
a new arrival
FOOD & BOOZE NEWS
HELENA LEE
ANGELA HARTNETT FEAST NIGHT AT
WHITECHAPEL GALLERY DINING ROOM
These monthly feasting menus are centred
around a theme, and Octobers is all about
beef. Hartnett has worked with head chef
Emma Duggan, ex-Foxtrot Oscar, to create
these menus. We want to create a night of
eating for friends and family, with all of the
food to share, says Hartnett, Emma has the
generosity as a chef to produce amazing food
in a relaxed environment as if you were in
your own home. 45, Whitechapel Gallery
BFI/JAMESON
POP-UP SPEAKEASY
Pop along to the cine-
matic speakeasy on the
top floor of Kettners,
where the Jameson
Apartment will be serving
cocktails served by a modern day
dandy.
Until 27 October. For the secret pass-
word visit:
www.facebook.com/jamesoncultfilmclub
BLUMENTHAL WINS AT
OFM AWARDS
Heston Blumenthal and
Hugh Fearnley-Whittingstall
were winners at last weeks
Observer Food Monthly
awards. Blumenthals Dinner
was named best restaurant. Koya in
Soho was best cheap eat, and Marks
Bar at HIX was best place to drink.
Fearnley Whittingstall won the award for
best food personality.
Left: Angela Hartnett.
Right: Its cocktail
time at the Jameson
speakeasy
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THE BODY FARM
BBC1, 9PM
A man is killed in a robbery, but his
family refuse to co-operate, preferring
to take the law into their own hands.
Keith Allen stars. Last in the series.
THIS WORLD: SPAINS STOLEN
BABIES BBC2, 9PM
Katya Adler investigates allegations of
baby theft and trafficking in Spain
during the dictatorship of General
Francisco Franco.
REAL FOOD FAMILY COOK OFF
CHANNEL5, 7.30PM
Matt Dawson and Lisa Faulkner park
the touring kitchens in Londons
Kensington Gardens for the first semi-
final of the home cooking competition.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.30pm
Special Report 11pmA League of
Their Own 12amFootball Asia
12.30amUEFA Champions
League Goals 1.30amFootballs
Greatest 2amRevista De La Liga
3amFootballs Greatest 3.30am
UEFA Champions League Goals
4.30amRevista De La Liga
5.30am-6amFootball Asia
SKY SPORTS 2
7pmLive UEFA Champions
League 10pmUEFA Champions
League Goals 11pmRevista De La
Liga 12amInternational Bowls
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SKY SPORTS 3
7pmFIA GT1 World
Championship 8pmGolf 9pm
2011 PGA Grand Slam of Golf
12amGolfing World. Magazine
show. 1amChallenge Series Golf
1.30amGolf 2.30am-4.30am
Mixed Martial Arts
BRITISH EUROSPORT
5.30pmLive WTA Tennis 7.15pm
Boxing 10pmGT Academy: Road
to Dubai 10.15pmWorld
Superbikes 11.15pm-12.15am
British Superbikes
ESPN
7pmESPN Kicks: Serie A 7.15pm
NFL 9.45pmESPN Kicks: Scottish
Premier League 10pmEredivisie
Review Show11pmSerie A
Review11.30pmESPN Press
Pass. Football-related debate.
12amWorld Series of Poker
Europe 1amPlanet Speed.
Motorsport round-up. 1.30am
WRC Rally World 2.30amESPN
Kicks: Premier League 2.45am
ESPN Kicks: Serie A 3amRussian
Premier League Review3.30am
Eredivisie Review Show4.30am
Premier League Review5am-6am
ESPN Game of the Week
SKY LIVING
7pmCriminal Minds 8pmSigned
By Katie Price 9pmAmericas
Next Top Model 10pmThe Secret
Circle 11pmBones 12amJerry
Bruckheimers Chase 1am
Criminal Minds 1.50amCSI:
Crime Scene Investigation
3.30amBones 4.20amMaury
5.10am-6amJerry Springer
BBC THREE
7pmDont Tell the Bride 9pmUp
for Hire Live 10pmEastEnders
10.30pmWilfred 10.50pm
Family Guy 11.35pmAmerican
Dad! 12.20amUp for Hire Live
1.20amWilfred 1.40amDont
Tell the Bride 3.40amJunior
Doctors: One Year Check Up
4.40am-5.10amThe Real Hustle:
New Recruits
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmMade
in Chelsea 9pmSmallville
10pmThe Cleveland Show
11.05pmShameless 12.10am
The Big Bang Theory 1.05am
Scrubs 1.55amHow I Met Your
Mother 2.20amShameless
3.15amRules of Engagement
3.35amReaper 4.20amGlee
5.05am-6amSwitched
HISTORY
7pmAmerica: The Story of the
US 8pmAmerican Pickers 10pm
American Restoration 11pm
Chasing Mummies 12amMud
Men 1amAmerican Restoration
2amMega Movers 3amAmerica:
The Story of the US 4amPawn
Stars 4.30amStorage Wars
5am-6amAncient Discoveries
DISCOVERY
7pmMythbusters 9pmWheeler
Dealers 10pmDeadliest Catch
11pmIce Pilots 12amBear Grylls:
Born Survivor 1amBattle
Machine Bros 2amDeadliest
Catch 3.50amWildest Africa
4.40amHow the Universe Works
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Stories 8pmI Didnt
Know I Was Pregnant 9pm
Mystery Diagnosis 10pmKids
Hospital 11pmHospital Sydney
12amMystery Diagnosis 1am
Kids Hospital 2amHospital
Sydney 3amI Didnt Know I Was
Pregnant 4amA Baby Story
5am-6amDeliver Me
SKY1
8pmMatthew Morrison Live at
the Hammersmith Apollo 9pm
Inside Gatwick 10pmFILM
Enemy of the State 1998.
12.30am35mm1amRoad Wars
1.30amNight Cops 2.25amLost
4.05amBite Size Brainiac
4.20amMy Pet Shame
5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmCHOICE The Body Farm
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmThe Kids Speech
11.25pmCherrys Parenting
Dilemmas
12.25amWeatherview
12.30amSign Zone: Village
SOS 1.30amHistory Cold Case
2.30amReel History of Britain
3am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmBritains Biggest Book
Prize: A Village Decides (Again)
7.30pmEscape to the Country
8pmCoast
9pmCHOICE This World:
Spains Stolen Babies
10pmLater Live with Jools
Holland: With Feist.
10.30pmNewsnight: Weather
11.20pmRTS Huw Wheldon
Lecture 2011: TV: Modern Father of
History 12amDamages 12.45am
BBC News 3amClose 4am-6am
BBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale: Debbie
disowns Cain.
7.30pmMayday Mayday
8pmHigh Stakes: Game show,
hosted by Jeremy Kyle.
9pm71 Degrees North
10pmITV News at Ten
10.30pmLondon News
10.35pmDCI Banks
11.35pmJoanna Lumleys
Greek Odyssey
12.30amThe Zone: ITV News
Headlines
3.05amHeist 3.50am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmGoks Clothes Roadshow:
Get the Look for Less
9pmMary Queen of Frocks
10pmShameless
11.10pmRandom Act 11.15pmTrue
Blood 12.30amUK & Ireland Poker
Tour 1.25amSailing 1.50amBeach
Volleyball 2.45amKOTV Boxing
3.10amBritish F3 International
Series 3.40amFIM Superbike
World Championship 4.05amThat
Paralympic Show4.30amGreat
East Swim5.25amGrudge Match
5.40am-6.10amTV Book Club
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmCHOICE Real Food
Family Cook Off: 5 News Update
8pmSuperior Interiors with
Kelly Hoppen: 5 News at 9
9pmCSI: Miami: Horatio
confronts his wifes killer.
10pmBig Brother 11pmBig
Brothers Bit on the Side 12am
Ultimate Police Interceptors
12.50amInside Hollywood 1am
SuperCasino 3.55amCounty
Secrets 4.05amMichaelas Wild
Challenge 4.55amAnimal Rescue
Squad 5.10amHouseBusters
5.35am-6amHouse Doctor
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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.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Cover with cloth (5)
3 Expect (5)
6 Tired of the
world (5)
7 Take exception
to (5)
10 Not having enough
money to pay for
necessities (11)
13 Arousing or holding
the attention (11)
15 Glide across ice (5)
18 Presentation,
briey (5)
19 Sing the praises
of (5)
20 Second planet
from the sun (5)
DOWN
1 City in the United
Arab Emirates on the
Persian Gulf (5)
2 Law established
by following earlier
judicial decisions (9)
3 Assist (3)
4 Branch (3)
5 Limited periods of time (5)
8 Being (9)
9 Hand tool for
boring holes (5)
11 Adult male person (3)
12 Large vase (3)
13 Come forth (5)
14 One dozen dozen (5)
16 Insect (3)
17 Old cloth measure (3)
E
R
A
T
O D
V
N
E
4
4

4
4
C A R G O S C A L P
H E U B I
E D A M G R O O V E
A L S P R C
P L A T E L O I R E
B E A R I N G
L E A N T C O I N S
I S B E N T
M O T L E Y B E E R
P E L R I
S T R U T P A Y U P
1 7 2 9 2 7
7 6 9 8 2 1 4
2 3 5 1 8 5 9 7
9 4 8 3 8 9
2 6 3 1 7 4 5
8 5 9
1 3 5 2 8 6 4
9 8 5 7 1 2
8 2 1 3 2 4 3 1
9 6 8 7 9 8 3
4 2 6 9 8 2
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PORCUPINE
Lifestyle | TV&Games
CITYA.M. 18 OCTOBER 2011 28
Sport
A
NY lingering doubts as to
whether the outstanding
Englishman Tom Lewis had
made the right decision in
turning pro at just 20 years of age
were utterly dispelled by his thrilling
maiden tournament victory at the
Portugal Masters on Sunday.
At the time I was fully supportive
of the move he made having been
suitably impressed by the way he
conducted himself at The Open and
I liked what I saw from him at the
Walker Cup subsequently.
After that there really was
nowhere left for him to go in the
amateur game and although the
timing meant he was likely to have
to earn his keep on the Tour school,
by winning in Vilamoura its no
exaggeration to say hes hit the jack-
pot.
It would have been no bad thing
for him to learn his profession out of
the media spotlight but from what
Ive seen hes got the temperament
and the talent to cope with the
attention he will now attract.
Furthermore, although hes pro-
pelled himself to super stardom and
will have to cope with everything
that accompanies that, in reality
hes already lifted an enormous
amount of pressure from his shoul-
ders by securing his European Tour
status for the next two years. That
will provide him with tremendous
peace of mind and allow him to play
his natural game.
In terms of his performance in
Portugal you cant describe it as any-
thing less than extraordinary. This
was by no means a run of the mill
end of year tournament with the
likes of Thomas Bjorn and Martin
Kaymer competing alongside him.
He managed to birdie five of the
last seven holes which showcased a
real attacking intent and a winners
mentality. Getting that first victory
under his belt so early is a stunning
achievement and youve only got to
look at how long it took the likes of
Nick Faldo and Rory McIlroy 28
and 38 tournaments respectively
to win their first titles to understand
just what this young man has
accomplished.
Nobody has announced their
arrival on Tour in such a dramatic
fashion previously even Tiger
Woods took five goes at it to win a
tournament and I really think we
are dealing with a superstar.
On a more sombre note I was sad-
dened to learn of the death of
Scottish golf coach Adam Hunter at
the age of just 48. He was a lovely
guy who helped a lot of Scottish
golfers down the years and hell be
sadly missed.
Youngster Lewis set for super stardom
GOLF COMMENT
SAM TORRANCE
HIGHLY-REGARDED Wales defence
coach Shaun Edwards is unsure if he
will remain in the role after his side
returns from their World Cup adven-
ture.
The former rugby league star will be
on the Welsh bench, potentially for
the final time, on Friday for the third-
place play-off against Australia.
Edwards, also head coach at Wasps,
has been linked with 2015 tourna-
ment hosts England, whose tourna-
ment ended in quarter-final defeat by
France.
My contract is up at the end of the
tournament and Im not too sure
what the future holds, admitted
Edwards.
Im not in a position to adjudicate
what my future is in international
rugby so its important that I just step
back, reflect and first and foremost
decide whether Wales dont want me
or whether my term as coach has
come to an end or whatever.
Its really important someone
told me once never make a decision
when youre emotional and obvious-
ly the emotions are still running
incredibly high at the moment.
The Welsh Rugby Union are under-
standably keen to keep thier coaching
unit, led by New Zealander Warren
Gatland, and which also includes for-
mer international scrum-half Rob
Howley.
WRU group chief executive Roger
Lewis indicated that they were keen to
retain Edwards, but admitted the for-
mer Wigan players situation was
complicated.
I have to be very respectful here,
Lewis said. Shauns principal, pri-
mary employer is Wasps.
Four years ago I had a very long
and protracted negotiation, an under-
standably difficult negotiation with
Wasps to get Shaun on release to us.
Because that is the relationship, hes
on release to us. Shaun, we know, has
been outstanding.
FORMER Olympic bronze medallist
Kelly Sotherton insists she still has
London 2012 glory in her sights
despite having her central funding
axed following a series of injury prob-
lems.
Sotherton, 34, was the highest-pro-
file victim yesterday when governing
body UK Athletics revealed how lot-
tery cash would be distributed for a
crucial 12 months as Team GB hope-
fuls gear up for the Olympics.
The former heptathlete, who decid-
ed to concentrate her efforts on the
400m last year, received second-tier
Podium Relay funding last year but
has now lost even that yet remains
unshaken in her bid for gold on home
soil.
My goals, aspirations and inten-
tions remain exactly the same as they
did when I was on [top-tier] Podium
funding and that is to represent Team
GB at the London 2012 Olympics, she
said. I am still training hard, with
my focus on being at peak physical
condition come July 2012. This news
does not come as a major surprise to
me and it is not a setback to my ambi-
tions and I am very grateful for the
support that UK Athletics has offered
me up until now.
World champions Mo Farah and
Dai Greene are among 75 athletes to
be awarded elite Podium funding,
alongside silver medallists Phillips
Idowu, Jessica Ennis and Hannah
England.
Recent British converts Tiffany
Porter, the US-born hurdler, and
Yamile Aldama, the Cuba-born triple
jumper who has also represented
Sudan, are also in the top bracket.
Two European Under-23 champi-
ons, pole vaulter Holly Bleasdale and
400m hurdler Jack Green, have been
promoted to Podium, as has
marathon runner Scott Overall, who
impressed by finishing fifth in Berlin
last month.
European silver medal-winning
sprinter Mark Lewis-Francis has been
relegated to Podium Relay funding
after his World Championship dis-
qualification for false-starting
BY JAMES GOLDMAN
RUGBY UNION
Sotherton
defiant after
funding blow
BY FRANK DALLERES
OLYMPICS
Sotherton won an
Olympic bronze
medal in 2004
Picture: ACTION
IMAGES
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email sport@cityam.com
SPORT | IN BRIEF
Chelsea reject Bridge bid
FOOTBALL: Chelsea have rejected a
counter-offer from opponents of their
bid to buy back the freehold of
Stamford Bridge. Chelsea need 75 per
cent of supporter-led group Chelsea
Pitch Owners shareholders who attend
an extraordinary general meeting on 27
October to back their bid in order for it
to succeed. Their opponents established
a campaign last week called Say No
CPO and members of the campaign
have met twice with Chelsea chairman
Bruce Buck to plead their case and yes-
terday saw them make a counter-offer
to the club. But a Chelsea spokesman
said: We have made what we believe to
be a reasonable proposal to the CPO
shareholders, and that is the proposal
that will be put to them on 27 October.
Chiefs to review new whip rules
HORSE RACING: The British
Horseracing Authority says it will review
the sports new controversial whip rules.
The move comes after discussions with
a delegation of riders and the
Professional Jockeys Association. The
dispute over tougher regulations and
penalties nearly led to a strike yesterday.
Jockey Richard Hughes relinquished his
licence last week in protest at new rules
which had seen him banned twice in the
space of four days.
Arsenal duo fitness doubts
FOOTBALL: Kieran Gibbs and Aaron
Ramsey are doubts ahead of Arsenals
Champions League trip to Marseille
tomorrow. Ramsey sat out Sundays 2-1
win over Sunderland at the Emirates
Stadium with a hamstring problem and
Gibbs suffered a stomach injury.
HENRY WARY OF
FRANCE THREAT
NEW ZEALAND coach Graham
Henry claims he is taking little
notice of France's unimpressive
World Cup semi-final performance
against Wales. The All Blacks have
been installed as overwhelming
favourites to land the Webb Ellis
Trophy at Frances expense on
Sunday, but Henry is taking nothing
for granted: He said: Although they
didnt play particularly well in their
semi-final, we know theyve got the
ability to play outstandingly, and
they have done that in the past.
THE BREAKDOWN |
WORLD CUP BRIEFS
Coveted Edwards unsure of Welsh future
ENGLAND fast bowler James
Anderson has strenuously denied
ever having tampered with the ball in
the wake of accusations levied
against him and team-mate Stuart
Broad by Pakistan seamer Umar Gul.
Responding to the confessions of
the recently retired Shoaib Akhtar in
his explosive autobiography, Gul, a
mainstay of the current Pakistan side,
claimed: Quite a few bowlers are
doing it [ball tampering] even now.
Against England last year I saw
myself Anderson was doing it.
Against Australia, the Ashes that
they won, everyone saw, Broad
scratched the ball with his shoes.
Everyone does this.
England have recently pro-
pelled themselves to the head of
the Test team standings largely
on the strength of their pace
attack, spearheaded by
Anderson and Broad, who
stand second and fifth in
the international Test
bowling rankings.
But Anderson has
denied Englands rapid
ascent has been based on
any manipulation of the
ball, even if Guls com-
ments took him aback to
such an extent that he
ended up questioning his
own integrity.
Its an interesting
one, said Anderson, who
has been rested from the
England side currently
touring India. It made
me think have I ever
scratched the ball?
Its something that Ive never done
and am not likely to do. I dont know
where its come from really.
I did read the comments where he
said that everyone does it but I can
safely say nobody in the England
team does it. I think [with Stuart] he
was referring to where he stopped the
ball with his foot during the Ashes.
Although they received the
unequivocal backing of England one-
day skipper Alastair Cook last week, it
is not the first time Broad and
Anderson have been accused of skul-
duggery.
In January of last year South
Africas AB de Villiers
demanded that
Englands naughty
cricketers be reported and
that they were guilty of
working on the ball at the
second Test in Durban.
Gul attempted to down-
play his own accusations last
week but with relations
between the two sets of players
already strained the trial into
allegations of spot-fixing dur-
ing last summers Test series is
currently ongoing this lat-
est episode is sure to add
extra spice when
the teams renew
hostilities in
Dubai early next
year.
James Anderson was
supporting the
NatWest OSCAs at Lord's,
held annually to reward volun-
teers and celebrate the unsung
heroes of the game. Find out
more at natwest.com/cricket.
Anderson: We
have never
tampered
with the ball
BY JAMES GOLDMAN
CRICKET
Sport
30
TRACK greats have united to accuse
Americas IndyCar series of allowing
dangerous driving conditions after
British racer Dan Wheldon died on
Sunday.
Buckinghamshire-born Wheldon,
who was 33, was the only fatality in
an horrific 200mph, 15-car pile-up
during the Las Vegas Indy 300.
Ex-Formula One drivers Mark
Blundell and Jody Scheckter called
the accident inevitable due to the
large number of cars jockeying for
position at very high speeds.
The Las Vegas circuit featured 34
cars one more than the bigger
Indianapolis track did for the series
showpiece race, the Indy 500.
It was inevitable in many ways,
said Blundell, also a former IndyCar
racer. It was a recipe for disaster.
These type of cars shouldnt be on
these type of circuits. Fifteen cars
wiped out 40 per cent of the grid
and weve had a fatality. Thats not
acceptable.
Scheckter, the 1979 Formula One
world champion whose son, Tomas,
escaped unhurt from Sundays infer-
no, called IndyCar the most danger-
ous form of motor racing at the
moment.
He added: One person makes a
mistake and this happens. It was mad-
ness. Formula One is not like that any-
more and it is still quite exciting.
Wheldon, who twice won the
Indianapolis 500 and also claimed the
series title in 2005, did not have a full-
time drive this season but was lured
back for the Las Vegas race and the
chance to win 317m ($500m).
Despite being a star in the United
States and well known among the
motorsport world he did not enjoy a
similarly high profile in Britain, hav-
ing left the country as a 21 year old in
1999.
Current Formula One stars Lewis
Hamilton, Jenson Button and Mark
Webber paid their tributes to
Wheldon on micro-blogging site
Twitter.
Wheldon hoped at one stage to
break into Formula One but was nit
prepared to be a test driver indefinite-
ly and turned down an offer from
BMW Sauber in 2006.
He leaves a wife and two young
sons, Oliver and Sebastian.
Wheldon
death raises
Indy fears
MANCHESTER UNITED defender
Patrice Evra has told manager Sir
Alex Ferguson that he wishes to pur-
sue his allegation that he was racially
abused by Liverpool forward Luis
Suarez in Saturdays Premier League
match.
Uruguay star Suarez on Sunday
denied Evras claim that he used a
certain word at least 10 times dur-
ing the 1-1 draw at Anfield.
But Ferguson, speaking ahead of
tonights Champions League match
at Romanian title winner Otelul
Galati, confirmed Evra still wants the
Football Association to investigate.
I spoke to Patrice today. He is
adamant he wants to follow it on,
said Ferguson.
It is not an easy one for us. It is not
something we would want to level
against Liverpool and it is not against
Liverpool. Obviously Patrice feels very
aggrieved at what was said to him. It
rests in the hands of the FA now.
Ferguson confirmed the ongoing
dispute would not preclude Evra
from featuring this evening as United
look to make up ground following an
unusually sluggish start to their
European campaign.
The English champions had to
come from behind to snatch a draw
at home to Basel last time round and
also drew their opening Group C fix-
ture, away at Benfica.
Defender Rio Ferdinand has been
rested but his regular central defen-
sive partner Nemanja Vidic returns
from a calf injury and could resume
the captaincy from Evra.
Striker Wayne Rooney, left on the
bench against Liverpool following the
news of a three-match international
ban that will rule him out of the Euro
2012 group stage, is in the squad.
Ferguson added: Its not easy to cope
with this situation, when he realised
that he will miss so many important
matches at a major competition. But
he is a strong character. When he
came on [at Anfield] he was bubbly,
full of energy and enthusiasm.
Galati have made a slow start to the
domestic season and lie ninth after
10 games, 10 points off the top.
Kohlis hundred
was his seventh
in one-day inter-
nationals
Picture: GETTY
Dan Wheldon Picture: ACTION IMAGES
BY FRANK DALLERES
FOOTBALL
OTELUL GALATI
MANCHESTER UNITED
Basel 2 1 1 0 5 4 4
Benfica 2 1 1 0 2 1 4
Man Utd 2 0 2 0 4 4 2
Otelul Galati 2 0 0 2 1 3 0
GROUP C
TEAM PLD W D L F A PTS
Evra insistent over Suarez racism claim
BY FRANK DALLERES
MOTORSPORT
Relegation in danger of
axe managers chief
Cook downbeat
as Kohli century
inspires Englands
Delhi destruction
DEMORALISED England captain
Alastair Cook admits his side have
been mentally weak in allowing India
to open up a 2-0 series lead following
yesterdays crushing eight-wicket
defeat in Delhi.
Following Fridays 126-run loss in
Hyderabad England were keen to
make a positive start on what
appeared to be a batting friendly
track.
Instead, the tourists found them-
selves immediately behind
the eight ball with Cook
and his opening partner
Craig Kieswetter sent
back to the hutch
without troubling
the scorers.
Kevin Pietersen
top scored with 46
in a total of 237 all
out which India
chased down with 80
balls remaining on
the back of a mam-
moth 209-run partner-
ship between Gautam
Gambhir and Virat Kohli, who
made an unbeaten 112 on his home
ground.
Weve had an excellent prepara-
tion and got everything out of the
practice matches that we wanted. But
weve not delivered out in the middle,
maybe its a bit of a mental thing,
conceded Cook (inset), who was frus-
tratingly out to the fourth ball of the
match, slashing a Praveen Kumar
long-hop straight to backward point.
We were none for two and quite a
long way back. There were a lot of 30s
and 40s, and we know that doesnt
win the game. Virat and Gambhir
showed us what a partnership can do.
It was a very good wicket and we
got 30, 40, 50 runs too few, but credit
to the way India played. They didnt
give us anything.
After a winless two-month summer
tour of England, during which India
lost their No1 Test ranking and were
soundly beaten in the one-dayers, the
boot is now firmly on the other foot.
India can clinch a series win on
Thursday in Mohali at the earliest pos-
sible opportunity and captain MS
Dhoni is proud of the way
his side has reacted fol-
lowing the disappoint-
ment of the summer.
He said: Im real-
ly happy we are on
the winning side.
The series in
England was not a
good one, but we
showed character.
We didnt get
frustrated, we
remained social on
the field and didnt lose
our temper. Its good to be
on the winning side now.
Tim Bresnan had offered England
some hope defending a sub-standard
total by removing both openers before
the score had hit 30. But Kohli, in tan-
dem with Gambhir, steadied the ship
before accelerating out of sight.
I was really keen to perform and
luckily I pulled it off, said Kohli. At
29-2 it was doing a bit and the bowlers
were getting bounce.
But I played on a similar wicket in
the IPL and it was coming on beauti-
fully so it suited my strokes.
BY JAMES GOLDMAN
CRICKET
OVERSEAS owners of Premier League

clubs want to ringfence the top flight
and abolish relegation, according to
League Managers Association chief
Richard Bevan.
Such a move could only be passed
if 14 of the 20 leading clubs voted in
favour of the change, but Bevan
believes that could happen if more
foreign investors snap up English
clubs.
There are a number of overseas-
owned clubs already talking about
bringing about the avoidance of pro-
motion and relegation in the Premier
League, he said. If we have four or
five more new owners, that could
happen.
It comes after Wigan chairman
Dave Whelan accused Liverpools
American owners of being behind the
Reds call for clubs to be allowed to
sell their own television rights, rather
than subscribing to the Premier
Leagues collective bargaining model.
Bevan again blamed the growing
US influence in English football, as
well as pointing the finger at Asian
investors.
Youll find that with American
owners and youll find that with
some of the Asian owners as well, he
added.
If you look at sport all around the
world and you look at sport owners
trying to work out how to invest and
make money, youll find that most of
them like the idea of franchises.
If you take, particularly, American
owners, without doubt there have
been a number of them looking at
possibly having more of a franchise
situation. That would mean no pro-
motion or relegation. That would
obviously not be good news for
English football.
Ringfencing the Premier League
would safeguard the top 20 teams
from the huge drop in revenue
caused by relegation, but critics
believe it would erode the divisions
famous competitiveness.
Bevan called on the games author-
ities to adopt government recom-
mendations to how the sport is run,
and in particular the introduction of
an annual licensing system managed
by the Football Association.
He said: You need to make sure
that the FA is strong enough to
ensure that the principles on which
our clubs are run, if Im an owner
coming in, I must recognise and
embrace the history, the tradition,
the supporters, the community, the
philosophy of actually how this club
should be operating and not deciding
my club should be taken abroad or
whatever.
The Glazer family became the first
American owners in the Premier
League when they bought
Manchester United in 2005.
BY FRANK DALLERES
FOOTBALL
31
MY FOCUS REMAINS ON BEING IN
PEAK CONDITION FOR JUNE 2012
SOTHERTON MAINTAINS OLYMPIC HOPE
AFTER HER CENTRAL FUNDING IS CUT: P29
The Glazer family were the first American Premier League owners Picture: PA
MANCHESTER CITY manager Roberto
Mancini is intent on staying at the
club beyond the length of his current
contract, which expires at the end of
next season.
The Italian has presided over Citys
best start to a league campaign since
1897 having secured the clubs first
piece of major silverware for 35 years
with last seasons FA Cup victory.
I would like to stay here for many
years in the future but it is not impor-
tant, my contract, the 46-year-old,
who succeeded Mark Hughes in
December 2009, said. After this year I
have one more year and I dont have a
problem with this. I havent talked to
the club but it is not important.
My feeling here is good, Mancini
said. I would like to stay here but in
football every week it can change. If
you lose two or three games, that can
change but we are working well.
Though all is set fair on the domes-
tic front, City have made a less than
auspicious start to their debut season
in Europes premier club competition.
A draw at home to Napoli was fol-
lowed by defeat in Munich and a win
is essential against Villarreal at the
Etihad Stadium tonight.
To that end City were boosted by
the news that top goalscorer Sergio
Aguero came through a training ses-
sion yesterday having not featured
since injuring his groin against
Blackburn earlier this month.
Mancini in it for the long haul
BY JAMES GOLDMAN
FOOTBALL
MANCHESTER CITY
VILLARREAL
OUTSPOKEN QPR captain Joey Barton
has taken aim at England captain
John Terry and Manchester United
star Ryan Giggs for their off-field
behaviour.
Barton, who served two months in
prison in 2008 after admitting assault
and affray, criticised two of the
Premier Leagues most high-profile
stars during a public speaking
appearance yesterday in London.
Of Chelsea skipper Terry, who lost
the England captaincy temporarily
over claims he had an affair with his
former team-mate Wayne Bridges ex-
girlfriend, Barton said: There was a
human element then about, as a
man, what you should do either to
your friend at work or one of your col-
leagues. It shouldnt have happened.
Giggs was this year accused of hav-
ing an extra-marital affair with his
brothers wife, and Barton added:
The Giggs issue in any walk of life is
not right. The behaviour of the man
towards another man, towards his
brother, its not right, regardless of
the player.
The former Manchester City and
Newcastle midfielder also added to
criticism of Englands rugby players
at the current World Cup in New
Zealand. He said: If that was an
England football team at a World
Cup, there would probably have been
public executions.
QPR skipper Barton blasts Terry,
Giggs and England rugby team
FOOTBALL
Bayern 2 2 0 0 4 0 6
Napoli 2 1 1 0 3 1 4
Man City 2 0 1 1 1 3 1
Villarreal 2 0 0 2 0 4 0
GROUP A
TEAM PLD W D L F A PTS
Arsenal Stan Kroenke* (US)
Aston Villa Randy Lerner (US)
Blackburn Venkys (India)
Chelsea Roman Abramovich (Russia)
FulhamMohamed Al Fayed (Egypt)
Liverpool Fenway Sports Group (US)
Man City Sheikh Mansour (UAE)
Man Utd Glazer family (US) (pictured)
QPR Tony Fernandes* (Malaysia)
Sunderland Ellis Short (US)
* Majority shareholders
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www.cityam.com Issue 1,491 Tuesday 18 October 2011 FREE

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