Cityam 2011-01-10

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Date: 21 January 2012
Time: 10.0015.30
FTSE 100 t5,612.26 -37.42 DOW 12,392.54 +32.62 NASDAQ 2,676.03 +2.34 /$ 1.55 +0.01 / 1.21 unc /$ 1.28 +0.01
Camerons
pay claims
under fire
COALITION attacks on crony capital-
ism at Britains top companies are
flawed and based on outdated views of
the composition of UK boardrooms,
according to a leading advisory group.
Sarah Wilson, chief executive of
proxy voting adviser Manifest, told City
A.M. that David Camerons policy was
a big soundbite but it does not have
much behind it.
Cameron has called for the reform
of remuneration committees to stop
what he claimed was a merry-go-
round, in which directors sit on each
others boards and hand out pay rises
to one another.
But research from Manifest reveals
that only 52 executive directors of
FTSE 100 companies, or just five per
cent, hold non-executive positions at
other firms on the index and only 20
of these sit on pay committees.
It also showed that where an execu-
tive from one company sits on the
board of another FTSE 100 firm, there
is no further crossover, because there
are no instances of an executive from
the second company also sitting on the
board of the first. This demolishes a
widely-believed myth.
Of the 1,005 directors in the 97 FTSE
100 companies surveyed, 88 per cent
hold just one FTSE 100 directorship, 10
per cent hold two and just two per
cent hold three or four. What share-
holders do want are claw-backs and
they want binding votes in place but
on directors share plans, Wilson said.
ALLISTER HEATH: P2, CITY VIEWS: P8
BY PETER EDWARDS
POLITICS
Philipp Hildebrand yesterday dramatically stepped down as head of the Swiss central bank Picture: REUTERS
EMBATTLED Swiss National Bank gov-
ernor Philipp Hildebrand yesterday
resigned from his role with immedi-
ate effect, succumbing to weeks of
pressure from politicians and the
media over controversial currency
transactions made by his wife.
Hildebrand admitted yesterday he
could not provide conclusive and
final evidence that Kashya
Hildebrand had bought half a million
US dollars in Swiss francs on 15
August without his knowledge, just
weeks before the SNB revealed a peg
for the booming currency.
Announcing his resignation at a
press conference in Bern, Hildebrand
told reporters he had stepped down to
protect the integrity of his employer.
I deeply regret these mistakes as well
as the entire situation I am confi-
dent that the SNB will emerge
stronger from what are admittedly
exceptionally difficult circum-
stances, he said.
Hildebrand had been due to face a
grilling by opposition politicians at a
closed meeting of Switzerlands par-
liamentary committee for economic
affairs and taxation yesterday after-
noon, but the appearance was can-
celled after the SNB issued a
lunchtime alert announcing that he
had quit.
A storm has been brewing around
the former hedgie since it emerged
TOP SWISS BANKER
FELLED BY SCANDAL
BY ELIZABETH FOURNIER
BANKING
www.cityam.com Issue 1,545 Tuesday 10 January 2012 FREE

COMEBACK
KING HENRY
ARSENAL LEGEND
MARKS RETURN
WITH WINNERP30
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REED HASTINGS INTERVIEW P20
BUSINESS WITH PERSONALITY
over Christmas that details of forex
trades from his personal accounts
had been leaked to members of the
Swiss Peoples Party by an employee
at his private bank, Sarasin.
Documents showed a 50,000 prof-
it had been made on a purchase of US
dollars made by Mrs Hildebrand just
weeks before the franc was pegged to
the euro, though she has denied any
prior knowledge of the policy change.
Despite Hildebrand continuing to
deny all allegations of insider trading,
pressure on him had been mounting
over the weekend after embarrassing
revelations in a magazine favoured by
opposition politicians. Just last
Thursday he maintained he would
remain at the SNB so long as I have
the confidence of the government
and the bank council.
Following the announcement, the
Swiss franc spiked to a four-month
high against the euro, but quickly fell
back as analysts said the shake-up at
the countrys central bank was
unlikely to affect monetary policy.
Colleagues were quick to rally
round the ex-hedge fund trader, with
Bank of England governor Sir Mervyn
King praising Hildebrand for his
total integrity, extraordinary ability
and, most important of all, courage.
Hildebrand also resigned yesterday
from the Financial Stability Board,
where he had been vice chairman.
The SNB said it regretted
Hildebrands decision and the cir-
cumstances that led to it.
Certified Distribution
31/10/11 till 27/11/11 is 100,007
News
2 CITYA.M. 10 JANUARY 2012
Panicking investors now pay
Germany to take their cash
YIELDS at a six-month German debt
auction became negative yesterday, as
investors were so desperate to lend to
Europes safest state that they paid the
government to take their cash.
Germany sold 3.9bn (3.22bn) in
six month bills for an average yield of
minus 0.0122 per cent. A similar issue
last month saw 0.001 per cent yields.
German Chancellor Angela Merkel
and French President Nicolas Sarkozy
met in Berlin in an effort to hammer
out a common position on resolving
BY TIM WALLACE
EUROZONE
RBS TO PRESS ON WITH BONUSES

Royal Bank of Scotland is determined
to press ahead with plans to pay out
promised bonuses to investment
bank boss John Hourican and other
top staff, despite growing rhetoric
from the government about excessive
pay. RBS, which is 83 per cent owned
by taxpayers, has long been the focal
point of government ire over banker
pay. A tussle is underway with UKFI,
which manages the governments
stake, about the overall bonus pool
RBS wants to pay its investment
bankers, with the tally set to be
halved to less than 500m.
MIGRANTS HAVE NO IMPACT ON JOBS
A long-held assumption that high lev-
els of immigration inthe past decade
led to a rise in unemployment has
been challenged by research. The
report, published by the National
Institute for Economic and Social
Research (NIESR) found that migra-
tion in local areas has essentially no
impact on the number of people
claiming unemployment benefit in
those regions.
BIOFUEL PRODUCTION DOWN IN 2011
The growth of the biofuel industry
has come to an abrupt halt with
annual output last year falling for the
first time in a decade due to poor
margins in Brazil and the US, the
worlds biggest suppliers. Global bio-
fuel production dropped to 1.819m
barrels a day, from 1.822m b/d in
2010.
EURO SHIFT HIGHLIGHTS REVIVAL OF
CARRY TRADE IN CURRENCY MARKETS
The borrowing of euros by traders to
invest in global assets is rising, in a
shift that banks say marks the start of
a revival of a so-called carry trade in
currency markets. Investment banks
say hedge funds are now shorting the
euro at record levels as bearishness
over the single currency increased.
MONTI TO VISIT CITY OF LONDON
Italys new technocrat leader will
court leading City investors in person
on a trip to London next week in an
effort to win over the financial mar-
kets. Mario Monti, who serves as
Prime Minister and Economy
Minister, will hold a road show after
talks with David Cameron on January
18. The Italian Embassy has sent 80
invitations to key City bankers and
fund managers to the session at the
London Stock Exchange.
SPOOKED INVESTORS FLEE EQUITIES
Private investors have staged their
biggest retreat from the share market
in at least 20 years, according to new
figures released yesterday. Investors
pulled a net 864m from the market
in November, as redemptions exceed-
ed new purchases of unit trusts and
other funds, said the Investment
Management Association.
ERIC CANTONA ANNOUNCES BID FOR
FRENCH PRESIDENCY
Eric Cantona, the former Manchester
United striker, has said he wants to
run in this years presidential election
in France and is trying to gather the
signatures needed to do so. The foot-
baller, who would need the backing of
500 elected officials by the end of
February to run, has sent a letter to
French mayors describing himself as
an engaged citizen and asking for
their support.
WAITROSE HELPS PRINCE OF WALESS
DUCHY TURN A PROFIT
Two years ago Duchy Originals was
criticised as a vanity project of the
Prince of Wales, hit by falling sales
and mounting losses, as consumers
cut back on organic food. However,
under a new deal with Waitrose, the
food manufacturer has made a profit
for the first time in four years.
JP MORGAN CEO: HOUSING MARKET IS
NEAR BOTTOM
JPMorgan Chase chief executive Jamie
Dimon said yesterday that the US
housing market has neared its bot-
tom, though it could remain there
for a year. Speaking at the banks
health-care conference, Dimon said
the country is likely to need more
new homes in the coming years as
supply and demand are balanced and
housing is more affordable than ever.
WHITE HOUSE CHIEF OF STAFF DALEY
RESIGNS
White House Chief of Staff William
M. Daley surprised President Barack
Obama by resigning after a year at
the start of the 2012 campaign.
Obama said Daley will be succeeded
by 56-year-old White House budget
director, Jack Lew. Daley had been
tasked with repairing the presidents
soured relations with business.
WHAT THE OTHER PAPERS SAY THIS MORNING
Time to root out fake facts on boards and pay
REWARDS for failure are bad; rewards
for doing well are good. That is one of
this newspapers guiding principals;
as I argued in this space yesterday, the
Prime Minister is right to be giving
more powers to shareholders to make
sure they exercise closer control over
boards. It is wrong and indefensible
for CEOs who bankrupt their compa-
ny to walk away with a large payout
they should be fired with no payoff.
Rewards for failure must end but at
the same time it is right that success-
ful, hard-working wealth creators be
handsomely rewarded when they
deliver the goods for their owners.
This debate ought to be about making
capitalism work better, not about
returning to some intellectually bank-
rupt egalitarian dystopia and embrac-
ing permanent stagnation.
So it is vital that the public be
informed of the proper facts about
City pay structures and corporate gov-
ernance so that they can understand
which reforms are needed and which
are not. Take the idea regularly ped-
dled by David Cameron, Vince Cable
and Nick Clegg that executives rou-
tinely sit on each others boards and
remuneration committees and hand
each other massive annual pay hikes.
This is an insidious myth, as Manifest,
a corporate governance group, has
brilliantly revealed.
First, take the overlap between dif-
ferent boards. Of the 1,005 directors in
97 FTSE 100 companies surveyed, 88
per cent hold just one FTSE 100 direc-
torship, 10 per cent hold two and just
2 per cent hold three or four. Just 5 per
cent of FTSE 100 executive directors
also serve as a non-executive on the
board of another FTSE 100. In not a
single one of these is the favour
returned. There is just one case of an
exec serving on the board of another
firm of which a non-exec in turn
serves on the formers board. Just 20
current executive directors of FTSE
100 firms sit on the remuneration
committees of 18 other FTSE 100 firms
and thus help influence pay. To sum
up: the cross-overs between boards are
small; they are utterly insignificant
when it comes to remuneration com-
mittees. In this instance at least, the
idea that cronyism dominates board-
rooms is worthless, factless nonsense.
Second, take total CEO pay in listed
companies. The best measure of these
things is to examine median (not
mean) total compensation. It is also
vital to understand that performance
pay is backward looking: pay rises
handed out in 2011 cannot be com-
pared to earnings or share rises for
2011 but for the previous financial
year. This ought to be obvious but
sadly isnt. The latest Manifest/MM&K
survey shows that Aim CEO total
remuneration awarded rose by 4 per
cent in 2010-11; small cap CEOs by 14
per cent, FTSE 250 CEOs by 12 per cent
and FTSE 100 CEOs by 12 per cent. The
previous year they were up by 4 per
cent for Aim, down 7 per cent for
small caps and up 6 per cent for FTSE
250 and FTSE 100 firms.
Total remuneration realised by
FTSE 100 CEOs grew by a median of 14
per cent, driven by long-term incen-
tive plans that vested in the year and
options. Bonuses were up 13 per cent,
triggered by FTSE 100 earnings per
share rising 39 per cent and the FTSE
100 rising by 9 per cent in 2010. Far
from these increases bearing no rela-
tion to performance, they were due to
plans paying out when performance
improved, not to boards randomly
increasing pay. Manifest believes
that the evidence shows that the sys-
tem has become much more efficient
and responsive over the past three
years. If this is right, the next batch of
figures will show that remuneration
slowed substantially as the FTSE stag-
nated in 2011 and earnings growth
slowed. We shall soon find out.
This doesnt mean the system is per-
fect; far from it. It needs further
reforms. Compensation doesnt fall
enough in bad years. There are still too
many massive payoffs for failure,
which is never excusable and is proba-
bly the single worst problem. The FTSE
100 has not increased over the past 12
years though CEO pay has quadru-
pled. There are some decent reasons
for some of that many firms now in
the FTSE werent there 12 years ago, so
the figures are not comparable; p/e
ratios are more sensible today but
bubble-era inflation also played a role
in pay. It is right that shareholders are
being given more powers; reforms
should go even further to empower
them. But the present hysteria and
misuse or downright distortion of sta-
tistics must end.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Merkozy have found common ground on tax and budget proposals Picture: REUTERS
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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self-regulation overseen by the Press Complaints
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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 Gavin Billenness
Pictures Alice Hepple
Commercial
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Commercial Director Harry Owen
Head of Distribution Nick Owen
the crisis that is driving investors away
from nations like Italy and Spain.
Merkel expressed confidence that a
new treaty, designed to force govern-
ments to run only small budget
deficits in future, will be finalised by
the end of this month.
Merkel urged swift action on the
Greek bond haircut a key step if the
country is to avoid a formal default on
its debts and possible euro exit.
The second Greek aid package
including this restructuring must be
in place quickly. Otherwise it won't be
possible to pay out the next tranche
for Greece, she announced.
Both leaders support the introduc-
tion of a financial transactions tax,
with Sarkozy even suggesting France
may implement it alone to encourage
other countries to follow suit.
Someone has to be first to jump in
the water, said French PM Franois
Fillon.
David Cameron who firmly oppos-
es such a tax claimed the Eurozones
problems lie in Germanys competi-
tiveness relative to the southern states.
Only massive transfers of wealth
from one part of Europe to another
will hold the union together, he said.
Meanwhile, Hungary saw borrow-
ing costs hit 7.77 per cent on 40bn
forints (1.05bn) of six-month debt
the highest since June 2009.
MORE EUROZONE: P10 & 11
Safe haven reward for Germans
Merkel wants euro budget deal
Sarkozy to forge ahead on FTT
Cameron urges transfer union
THE DEPARTMENT for Transport is
today expected to give the thumbs up
to High Speed 2, the 32bn project
which will link London with the north
by high speed rail.
Justine Greening will also reveal
measures to soften the worst effects
of the planned railway, which has
been criticised in the belief it will dis-
rupt communities, blight the
Chilterns and cost taxpayers dearly.
First proposed by Labour transport
secretary Lord Adonis in 2010, the
first phase of HS2 will allow passen-
gers to commute between London
and Birmingham in 49 minutes.
IT WAS all change on the high street
yesterday after two of the UKs strick-
en retailers, lingerie chain La Senza
and outdoor sportswear company
Blacks Leisure, were rescued from
administration.
Retailer JD Sports confirmed yester-
day that it had bought all of Blacks
290 stores and the bulk of its business
from its administrator KPMG in a
20m deal, pipping Dragons Den star
Peter Jones and rival Sports Direct to
the post.
Blacks new owner said it will evalu-
ate the performance of each store
before it decides how many to close.
The future of its Northampton-based
head office and warehouse remained
unclear.
Meanwhile Kuwait-based retail
group Alshaya has snapped up 60 of La
Senzas 146 UK stores from KPMG,
who is also acting as La Senzas admin-
istrator, helping to secure 1100 jobs.
KPMG said another 84 stores and 18
concessions had closed, resulting in
about 1,300 job losses at the retailer,
which was owned by private equity
firm Lion Capital.
Alshaya, an international franchise
partner for a number of British retail
brands including Mothercare,
Debenhams, Boots and Next, said it
planned to invest about 100m in the
business over the next two year.
This is a strategic investment for us
and a positive addition to our exten-
sive international retail portfolio,
executive chairman Mohammed
Alshaya said in a statement.
The private family-owned company
runs franchises for 55 brands in 19
countries, including in Russia, where
it already operates three La Senza
stores. The group made its first step in
the UK last year when it opened the
US frozen yoghurt brand Pinkberry in
Selfridges and Westfield Stratford.
Both Blacks and La Senza have been
put through a controversial pre-pack
administration, where a company con-
tinues to trade right up to its sale to a
new owner and assets are sold off
debt-free.
The companies are the latest in a
long line of retailer casualties
including Hawkins Bazaar, Past Times
and Barratts Shoes that have col-
lapsed as the crisis in consumer confi-
dence wreaks havoc on the high
street.
La Senza and
Blacks saved
from brink
FACEBOOK and the Angry Birds game
were the most downloaded apps of 2011,
Apple revealed yesterday, and the
remaining eight of the top 10 were all
games.
Early last month Apple said its 2011
app downloads had smashed through
the 100m mark.
The technology giants chief executive
Tim Cook received almost $1m
(646,700) in cash last year, plus hun-
dreds of millions in restricted shares.
Based on the shares valuation in
August, when they were awarded to
Cook, the package is worth $376m.
Half of the shares vest in 2016, and the
other half in 2021, Apple said in an
announcement yesterday.
Apple said the remuneration was a
retention and promotion tool, and also
recognised Cooks work in standing in
when Steve Jobs took medical leave.
Among music apps, Pandora which
generates personalised radio stations for
its users based on their music prefer-
ences came top. FatBooth, which shows
users how they would look with a few
extra pounds, and video streamer Netflix
topped the entertainment category.
The less popular heath and fitness cat-
egory was led by the Calorie Counter app
and the Nike+GPS tools to aid track runs
and workouts.
Angry Birds leads iPhone app
boom as boss gets paid $376m
TRADE union Unite rejected reforms
to the Local Government Pension
Scheme yesterday, saying its members
lacked clarity on the plans.
Changes include basing pensions on
average career earnings and linking
the local government retirement age
to the rising state pensions age.
The union accused communities
secretary Eric Pickles of wrongly claim-
ing the proposals were agreed.
Unites Len McCluskey said the pro-
posals were rejected because: The
security of our members in retirement
is just too important to leave any space
for doubt or mistrust.
Unison rejects
pensions offer
HS2 go-ahead
expected today
BY KASMIRA JEFFORD
RETAIL
TRANSPORT
POLITICS
BY HARRY BANKS
TECHNOLOGY
News
Apple boss Tim Cook received hundreds of millions of dollars in stock awards
SANTANDER has raised all the nec-
essary capital to meet regulators
demands six months ahead of
schedule, the bank declared yester-
day.
It said that it had raised the lions
share 6.83bn (5.6bn) through a
controversial bond conversion
known as Valores Santander.
The project involved activating a
clause that converted a huge slice of
its debt, much of it bought by its
retail customers, into less valuable
equity, causing a row in Spain over
accusations that it had taken a cav-
alier attitude towards its investors.
Of the other 8.2bn, the bank
found 1.94bn by swapping pre-
ferred shares for common shares,
1.66bn by issuing a scrip dividend
(which can be issued in shares
rather than cash) and the remain-
ing 4.89bn from accrued earnings
and offloading stakes in Chilean
and Brazilian businesses.
Altogether, the bank said that the
moves bring its core tier one capital
ratio up to the nine per cent
demanded by the European
Banking Authority.
The news came as its UK business
unveiled the appointment of a for-
mer RBS executive charged with
kickstarting the banks stalled pur-
chase of 318 branches from its
nationalised rival.
Martin Bischoff no relation to
the Lloyds chairman of the same
surname will join Santander UK
from RBS in order to oversee the
integration of the branches, which
the bank wants to complete by the
end of this year, about a year behind
schedule.
Bischoff who is moving from a
senior role at RBS-owned Citizens
Financial Group, will be in charge
of the retail side of the operation.
The purchase of the branches
became so fraught last year that
Santander UK was forced to renego-
tiate the entire deal with RBS over
the summer, making the arrival of
a former RBS insider particularly
useful to the bank.
It is not yet clear what kind of dis-
count on the purchase Santander
UK could get, given that the worsen-
ing macro-economic situation
could have significantly changed
the value of some of the assets.
The bank has also not ruled out
sales of chunks of its international
business to bring its capital up fur-
ther to ten per cent.
Santander is
ahead of its
capital goals
BY JULIET SAMUEL
BANKING
News
Sir Richard
Branson in
Newcastle
yesterday, on a
quest for better
banking.
VIRGIN: THE TOP TEAM
The only former Northern Rock executive
to make the final cut at Virgin Money,
Mark Parker will take the role of chief
operating officer, which he also held at the
bailed-out lender. He has also worked pre-
viously at HBOS and at HBOS-owned sub-
sidiary Intelligent Finance Bank.
City grandee David Clementi is a former
deputy governor of the Bank of England,
a role he held until 2002. He has also
been chairman of FTSE 100 insurer
Prudential and chief executive of private
bank Kleinwort Benson.
Jayne-Anne Gadhia has worked at a
range of RBS and Virgin financial servic-
es ventures for the last 16 years, includ-
ing a stint as a manager of RBSs 66bn
mortgage book. She joined Virgin Money
as CEO in 2007.
CHAIRMAN
SIR DAVID CLEMENTI
CHIEF EXECUTIVE
JAYNE-ANNE GADHIA
MARK PARKER
CHIEF OPERATING OFFICER
VIRGIN Money has unveiled the full
executive team that will be charged
with embarking upon its quest for
better banking for the high street
with a strong showing for staff former-
ly employed by bailed-out behemoth
Royal Bank of Scotland.
The full lineup includes four senior
managers who used to work at RBS,
including chief executive Jayne-Anne
Gadhia.
Finlay Williamson, formerly
finance director in manufacturing at
RBS, has filled the role of finance direc-
tor, while Stephen Pearson, previously
RBSs head of litigation, moves into
Virgin Moneys chief counsel role.
Marketing director Paul Lloyds also
comes from RBS.
Virgin Money yesterday marked the
completion of its deal to buy chunk of
the bailed-out lender Northern Rock
by wheeling out its group founder, Sir
Richard Branson.
Branson made an appearance at the
Newcastle branch to shake hands with
Gadhia before raising a toast and pos-
ing for a series of photos.
Branson said that going into high
street banking followed on from
Virgins trend of going into markets
where theres been an opportunity to
make things better for customers.
The management will also include a
former Northern Rock exec, Mark
Parker, as chief operating officer; Pete
Ball, from Bank of America, as com-
mercial director; and a human
resources chief from BP, Matt Elliot.
Virgin picks
former RBS
executives
Martin Bischoff is
tasked with integrating
the retail side of the
branches Santander
bought from RBS
ANALYSIS l Banco Santander SA
3Jan 4Jan 5Jan 6Jan 9Jan

5.90
5.70
6.00
5.80
5.50
5.40
5.60
5.45
9 Jan
BY JULIET SAMUEL
BANKING
UniCredit in
fresh share
price plunge
News
CITYA.M. 10 JANUARY 2012
Goldman to
slash pay by
nearly half
5
risk appetite among Middle Eastern
funds has retreated markedly due to
nursing recent losses.
Even pessimistic investors were
shocked by the extent of the discount
when UniCredit unveiled its rights
price last week.
It was forced to knock them down
to just 1.90, a 43 per cent discount
on the shares estimated post-deal
value and a 69 per cent discount to
its closing price a week ago, before
the announcement.
Underwriters are on the hook for
the whole issue if they cannot find
buyers, but even rival bankers think
that the deal will get done somehow.
One said that despite the lenders
plunging stock price, its underlying
business is healthy and UniCredits
banks are unlikely to be left with
much on their books. Antnio Horta-Osrio arrived back at Lloyds yesterday Picture: Reuters
TRADING in shares and rights in
Italys largest lender, UniCredit, had
to be suspended for the second time
in a week yesterday after falling too
quickly.
The 12.8 per cent fall yesterday
means that the bank has lost nearly
half of its value in just one week
since giving details of its heavily dis-
counted rights issue.
It was an inauspicious start to trad-
ing in the discounted rights to take
up extra shares in the bank, which
fell 14.2 per cent upon opening.
Bankers on the deal blamed the
plunging stock price on tail-swallow-
ing a practice whereby investors
sell shares in order to buy cheaper
rights. The problem was being exac-
erbated by a market with little liquid-
ity, said one banker.
But a source on the deal also said
there is strong interest in the stock
because it is now screamingly
cheap. The bank has received indica-
tions of interest in about 24 per cent
of the new issue so far, although 10
per cent of the interst does not con-
sist of firm commitments to partici-
pate.
There had been suggestions that
sovereign wealth funds could be
tapped to take up some of the issue,
but two banking sources said that
ANALYSIS l UniCredit SpA

4.00
3.50
3.00
2.50
2.29
9 Jan
LLOYDS chief executive Antnio
Horta-Osrio returned to his first day
of work after two months sick leave
yesterday, taking five minutes out of
his morning to pose for photos out-
side its Gresham Street HQ.
His return came as the bank
appointed Rothschild, the investment
bank, to advise on its options for its
business in the United Arab Emirates,
with a possible sale on the cards as
the group scales down its interna-
tional presence.
Horta-Osrio said he was
thrilled to be back. He will spend
this week meeting executives to dis-
cuss their new roles.
GOLDMAN Sachs is expected to take
an axe to pay in this years bonus
round following a dramatic fall-off in
revenues.
Some senior bankers expect to see
their pay packages fall as much as 40
per cent, while some reports suggest-
ed that pay for partners at the very
top could halve.
But some bonuses will be cut right
down to the bone: revenues, which
determine pay packages, have
plunged from over $14bn in the mid-
dle of 2010 to just above $5bn in
September last year.
The bank could cut some bonuses
entirely in an attempt to get rid of
staff before looking at slashing jobs.
Like rivals, Goldman has suffered
from a major slowdown in trading in
part due to debt crisis worries.
Firms lending
cash to banks
BANK FUNDING
BLUE-CHIP names like Johnson &

Johnson, Pfizer and Peugeot are
among firms bailing out Europes ail-
ing banks in a reversal of the estab-
lished roles of clients and lenders.
One source with knowledge of the
so-called repo deals or short-term
secured lending, said the two US phar-
maceutical groups and French car-
maker were the latest to sign up for
them.
Europes banks are struggling to
secure cash to fund their day-to-day
business and have largely stopped
lending to each other. So a group of
well-known, cash-rich companies has
stepped into the repo market, which
provides a form of lending so far
almost exclusively in use between
banks.
BY JULIET SAMUEL
BANKING
BY JULIET SAMUEL
BANKING
BY JULIET SAMUEL
BANKING
Lloyds boss returns with

a smile for the cameras
ORIEL Securities, the expanding
stockbroking firm that is bidding for
Hoare Govett, has lost one of its sen-
ior executives after less than a year.
Glenn Poulter, who joined Oriel as
head of equities in December 2010,
has left the firm after asking chief
executive Simon Bragg whether he
could extend his settling-in period
during which his sizeable financial
investment in Oriel
could have
been taken out.
Poulter made
the investment
in Oriel when
he joined the
firm and, as is
common, was
entitled to withdraw it at any time
during the first 12 months if he felt
the new role was not working out.
According to sources, he asked
Bragg whether the settling-in period
could be extended by six months, a
request that was refused. Poulter left
Oriel before Christmas, sources said.
Some say that the disagreement
over the length of the settling-in
Hoare Govett
bidder loses
top executive
CLIENTS and creditors of MF Global
UK, part of the defunct US brokerage,
may get some of their cash back next
month after a crunch meeting with
the administrator yesterday.
They backed the proposals put for-
ward by special administrator KPMG
in a session which critics had billed as
a vote of confidence.
Richard Heis, joint administrator,
said: Both clients and creditors voted
overwhelmingly in favour of our pro-
posals, which include the expectation
that we will be able to make an inter-
im distribution of client monies with-
in the next few weeks.
KPMG is due to update the High
Court on the administration early
next month, which could lead to an
interim distribution of money shortly
afterwards.
About 800 representatives of MF
Globals clients and creditors attend-
ed the meeting with KPMG yesterday.
The broker failed on 31 October.
FINANCIAL SERVICES
LAZARD, the independent invest-

ment bank, has poached a well-
regarded managing director from
rival Bank of America Merrill Lynch.
Noah Bulkin is joining Lazards
financial advisory team and is likely
to continue acting mostly for retail
clients.
In the past he has worked on a
string of high-profile deals such as
Odeon and UCI Cinemas 300m cash-
raising in May last year, acquisitions
by Guy Hands Terra Firma totalling
641m and EDFs sale of its 3.1bn
minority stake in British Energy to
Centrica.
Lazard poaches
a BofA banker
News
Creditors back plan for MF Global UK
Theres no let up in Citys race to consolidate
I
T seems there is going to be no
slackening of the consolidation
process taking place in the finan-
cial advisory sector. Evolution has
already been swallowed up by
Investec, with fairly unpleasant conse-
quences for many of its employees;
Collins Stewart Hawkpoint is busy
sorting out the finer details of its deal
with the Canadian group Canaccord,
and a whole raft of firms have let peo-
ple go.
In current markets, there is simply
not enough commission business or
deals going on to support existing
incumbents. The last couple of days
have also brought rumours of
Panmure Gordon putting together
some sort of deal with Cenkos, now
led by chief executive Jim Durkin.
Anythings possible in these markets
but yesterday there were doubts that
Panmures Qatari shareholder would
fancy selling out of the group at cur-
rent prices.
Then theres the future of Hoare
Govett, the advisory arm of RBS that
chancellor George Osborne has insist-
ed must be sold. Hoare Govett, despite
its recent troubles and losses estimat-
ed at around 20m a year, is still
viewed in the City as a fantastically
attractive brand.
The firm retains a host of broker-
ships in the FTSE 100, including
Rexam, Morrison and Rolls-Royce, and
despite the problems of its current
parent and being part-owned by the
government it still employs a number
of high quality employees, such as
Paul Nicholls, Lee Morton and Chris
Izeal.
RBC Capital Markets, the Canadian
banking group, is seen by many to be
one of the more obvious buyers but
privately it has been ruling itself out.
Barclays Capital is also expanding its
advisory business but maybe CIBC is a
more likely bidder.
Liberum Capital, which is a well
regarded independent advisory and
research house, is said to be interested
in picking up some of the best teams
from Hoare Govett but has yet to have
detailed talks with Lazard, which is
working on the sale. Numis has also
been named as a possible buyer.
Much depends on the financial
arrangements. Hoare Govett employs
around 1,000 people, many of whom
would not be required by a purchaser.
Indeed any buyer might even need
some assistance in order to be able to
make the necessary lay-offs.
The firm seen to be in pole position
is Oriel Securities, which just happens
to have former Hoare Govett legend
Peter Meinertzhagen as a director. It
would be a big step up for Oriel but
chief executive Simon Bragg is an
ambitious man.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
DEXION, a boutique investment bank
focused on hedge funds, has scored a
coup by snagging a highly regarded
analyst from behemoth JP Morgan
Cazenove.
Senior analyst Tom Skinner has left
the bulge bracket bank to head up
research at Dexion, expanding its cov-
erage to include some close-ended
funds and infrastructure.
Dexion managing director Ana
Haurie says the bank is able to recruit
because it did not hire and fire like
some rivals: We grew organically
and... stuck to our knitting, she told
City A.M.
JP Morgan loss
to boutique rival
period was just one of many factors.
Its unfortunate that Glenns not
with us, but things just did not work
out, said a source.
Poulter, who is recovering from a
back operation, is still listed as one
of the key executives on Oriels web-
site but calls to him were not being
put through yesterday.
He has left the firm, a reception-
ist said.
Poulter was hired by Oriel from
Icap, where he
spearheaded the
money-brokers
push into equi-
ties. He was pre-
viously the
former head of
C i t i g r o u p s
European cash
equities business.
Oriel, which has the former Hoare
Govett luminary Peter
Meinertzhagen on its board and is
adviser to 56 corporate clients, is
interested in bidding for the RBS
unit.
It is expected to face competition
from other bidders, including the
Canadian group that tried to buy
Evolution, CIBC.
BY DAVID HELLIER
EXCLUSIVE
BANKING
BANKING
FALLING metals prices and a weak

global economy pushed Alcoa into a
fourth quarter loss, the USAs largest
aluminium producer revealed yester-
day.
Kicking off 2012s corporate earn-
ings reports in the States, the firm
lost $193m (125m), or 18 cents per
share, on continuing operations.
Nonetheless, the firm remains
upbeat with forecasts of soaring
demand over the next decade.
The loss compares with a profit of
$176m, or 15 cents pre share, in the
final quarter of 2010.
Excluding restructuring and other
charges, the loss stood at $34m, or
three cents per share.
However, the results were not as
bad as feared, and shares rose six
cents to $9.48 in after-hours trading.
Revenues were down seven per
cent compared with the third quar-
ter, but up six per cent on the same
period of 2010, to $6bn.
Alcoa has forecast growth of seven
per cent in global aluminium
demand over 2012, and believes
demand will double by 2020.
The first results of the quarter fol-
low on the heels of dimming analyst
expectations across the stock mar-
ket. On 30 September, analysts pro-
jected that fourth-quarter earnings
at companies in the Standard &
Poors 500 index would grow 14.1 per
cent, according to Bespoke
Investments. By 3 January, the
growth estimate had fallen to just
6.2 per cent.
Alcoa loses
on slumping
metal prices
PROTESTERS from Occupy London
will today join politicians from across
the party divide to give the City regu-
lator a teach out on executive pay
and bonuses.
The group is due to hold the ses-
sion in the area outside the headquar-
ters of the Financial Services
Authority in Canary Wharf this
morning, coinciding with the RBS
bonus announcements. The activists
said Labours Lord Glasman will
attend, as well as Conservative MP
Steve Baker, who has campaigned for
tougher accounting standards.
Protesters aim
to teach FSA
BY HARRY BANKS
INDUSTRIALS
POLITICS
News
Yes, but to a point. Shareholders invest a
large amount of money so they deserve
power, but it would be hard to implement.
Yes, as the level of director pay affects divi-
dends. If executives get paid a lot, it can
decrease what the shareholder receives.
ALI MALAIBARI | BLOOMBERG
The shareholders already have some control
over the executives pay, but they don't use it!
If they did use it I think they have enough.
ALEX WALSH | NILEX
www.RateSetter.com Customer Phoneline: 08442490115
In association with RateSetter: A better way to Save and Borrow, Peer to Peer
Prime Minister
David Cameron
has spoken out
against excessive
executive pay
ANALYSIS l Alcoa Inc
$
9.40
9.30
9.10
9.00
9.20
9.43
9 Jan
Interviews by Phoebe Torrance
CITY VIEWS: SHOULD SHAREHOLDERS HAVE MORE
SAY ON EXECUTIVE PAY?
NEIL NEWTON | BERRYMANS LACE MAWER LLP
MORE airport capacity is needed in
the south east, according to a report
out today from the Civil Aviation
Authority (CAA).
Unless expansion is allowed, the
CAA fears consumers will face higher
prices and the choice of destinations
will become increasingly limited.
The CAA suggests local residents
concerns over levels of noise pollu-
tion caused by any expansion could
be addressed by giving out tax
rebates, paid for by taxing airlines
with the loudest planes.
CAA calls for
more airports
POLITICS
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BANKS are storing ever more cash in
the European Central Banks (ECB)
deposit facility, which hit another
record high yesterday.
Banks put away 464bn (383bn) in
the facility, which is regarded as a rea-
sonable indication of their desire to
horde cash as it means putting away
money above and beyond the amount
they must hold in their current
accounts.
Yet the news coincides with signs of
a thaw in interbank funding markets.
Data from Dealogic shows that banks
issued their highest volumes of unse-
cured debt since May last year, before
Europes latest credit crunch took
hold.
Banks sold $22.8bn of unsecured
debt last week in a rush to get hold of
more cash before markets close again.
The biggest such deal was by
Citigroup, which sold $2.5bn last
week. That was followed by the sale of
2.5bn in bonds by both Nordea Bank
and RBS-owned ABN Amro, while
Rabobank Netherland raised 1.75bn.
The issuances and the high in
deposits shows that banks are desper-
ate to accrue and sit on as much cash
as possible in order to ride out any fur-
ther funding crises this year.
The ECB has been pumping cash
into the banking system and last week
also increased its intervention in gov-
ernment bond markets. Its purchases
of sovereign notes rose to 1.1bn, the
largest amount it has bought since
mid-December.
The figure does not include any pur-
chases it might have made on Friday.
ECB deposits
reach a fresh
record high
BY JULIET SAMUEL
BANKING
TALKS between Hungary and the

International Monetary Fund (IMF)
began in Washington yesterday,
according to Hungarys economy min-
istry.
The country hopes that a credit line
from the IMF will not need to be called
upon but will be seen by investors as a
safety net preventing the country
from defaulting on its debts.
Yields on the governments 10-year
debt spiked to 9.5 per cent in
December and 10.8 per cent last week
as concern grew over the new constitu-
tion put in place over the New Year.
Prime Minister Viktor Orban fell out
with international lenders over the
changes, but now must court them
after investors panicked.
Following this weeks negotiations,
the country will also discuss aid with
the EU.
Hungary starting bailout talks in
attempt to soothe market worry
EUROZONE
PRIME Minister David Cameron would

face a humiliating Commons defeat if
he tries to boost Britains contribution
to an IMF bailout fund for the
Eurozone, backbench MPs expect.
Chancellor George Osborne told par-
liament in October that the UK will
not be putting money into the bailout
fund either directly or through the
IMF yet he is coming under
increased international pressure to
back down on the pledge, with
Number 10 refusing to rule out fur-
ther contributions.
The last time they asked the
Commons to approve more billions for
the IMF to bail out the euro they were
down to their lowest majority,
Conservative MP Douglas Carswell told
City A.M. I suspect that if the govern-
ment pushes it to a vote they may well
find they cannot rely on a majority.
Parliament passed an increase in
the UKs contributions to the IMF in
July 2011, yet 30 Conservative MPs
rebelled. And at the end of October, 81
Tory MPs joined a rebellion against the
Coalition over a vote to grant a referen-
dum on Britains membership of the
European Union.
Wed all give very serious consider-
ation to voting against the govern-
ment, added Steve Baker MP,
yesterday. But it is conceivable [that
the government would lose]. We want
the government to do the right thing.
Higher IMF contribution may
prompt defeat in Commons
BY JULIAN HARRIS
EUROZONE
News
HIGHER exports have bolstered
Germanys trade balance, official
data showed yesterday, widening the
Eurozone heavyweights surplus.
The positive economic news was
short-lived, however, after separate
data showed a decline in German
industrial output -- prompting some
economists to state that the core
Eurozone nation could already be in
the midst of a double-dip recession.
And in France the trade deficit is
set for a record high in 2011, despite
narrowing sharply in November on
the back of Airbus exports.
We do not expect the [French]
trade deficit to improve significant-
ly, in line with indications of slow-
ing industrial growth in Europe but
also more generally at the global
level, commented Barclays Capital
in a note. However, there is a risk
BY JULIAN HARRIS
EUROZONE ECONOMY
News
that imports slowed down owing to
tepid domestic demand.
The French government expects
the countrys economy to grow one
per cent this year although most
economists are forecasting growth
much closer to zero as businesses
and consumers entrench for a
painful downturn.
In neighbouring Germany exports
rose 2.5 per cent in November, data
showed, easily beating forecasts and
reversing Octobers drop. The trade
surplus widened to 15.1bn.
Yet industrial output for the same
month was down 0.6 per cent, worse
than bearish forecasts.
Restrained orders in the manu-
facturing and construction sectors
indicate that overall production will
continue to be subdued in the com-
ing winter months, the economy
ministry said in a statement.
And Capital Economics said in a
note: While Germany should fare
better than most other Eurozone
economies in the coming months,we
doubt that it will avoid a recession
and see GDP falling by about 0.5 per
cent this year.
Mario Draghi, head
of the ECB, is seeing
more cash deposit-
ed with the bank
Germany may be in recession
despite a wider trade surplus
@
@
@
MORE NEWS
ONLINE
www.cityam.com
News
HOPE for the British high street was
boosted this morning by figures show-
ing a sharp increase in retail sales for
December, compared to the key
Christmas period the previous year.
Like-for-like retail sales were up 2.2
per cent, while total sales -- which
include newly developed shop floor
space -- jumped by 4.1 per cent.
However, the British Retail
Consortium (BRC), which compiles the
data, said that 2010s extreme snow
storms had flattered the comparatives.
In the three months to December, a
less volatile comparison, like-for-like
sales were up just 0.2 per cent, while
total sales rose by 2.3 per cent -- well
below current levels of inflation.
December sales
boost flattered
by 2010s snow
RETAIL
EMBATTLED music retailer HMV

said sales of consumer gadgets such
as headphones and tablet computers
had helped improve its sales over
the crucial Christmas trading period
as the group attempted to offset the
long-term decline in CDs and DVDs.
Sales at stores open over a year fell
8.2 per cent in the five weeks to 31
December. But that is an improve-
ment on like-for-like sales since HMV
updated investors in the week
before Christmas, when sales were
running down more than 13 per
cent.
Chief executive Simon Fox said
clearly overall numbers are disap-
pointing but added he was opti-
mistic about the groups prospects.
While reiterating last months
warning that material uncertain-
ties may cast doubt on the firms
ability to continue as a going con-
cern in the future, Fox said he was
confident that the business would
going to be around for some
Christmases to come.
The 91-year old company, which
runs 256 stores in UK and Ireland
and employs 4,500, issued three
profit warnings in 2011, forcing it to
sell off its Waterstones business ear-
lier this year.
Last month the group appointed
Citigroup to find a buyer for its prof-
itable HMV Live division to help cuts
its 160m debt pile, but analysts
believe the company will have to fur-
ther to pay down debt and provide
sufficient working capital.
The live division, which runs 13
venues including the Hammersmith
Apollo, is understood to have
sparked interested among several
potential bidders including Time
Out owner Oakley Capital.
The group has been focusing on
offsetting falling demand for CDs,
DVDs and video games, by refitting
its stores with a technology range of
portable digital products. These
delivered technology like-for-like
sales of 51 per cent in the five-week
period. Fox said the firm sold
500,000 pairs of headphones in
December and 20,000 tablet com-
puters.
Shares fell 1.67 per cent to 2.95p
yesterday.
HMV hopeful for its
survival as sales fall
BY KASMIRA JEFFORD
RETAIL
ANALYSIS l HMV Group PLC

p
3.50
3.40
3.30
3.20
3.10
3.00
2.90
2.80
2.95
9 Jan
Foyles new shops help to
offset Crossrail problems
FOYLES bookshops said the sale of
hardback classics and limited edi-
tions of Haruki Murakamis best-
seller 1Q84 helped boost group
sales by 20 per cent for the period
from 1 to 24 December compared to
same period last year.
Strong sales at its newly opened
store in the Westfield Stratford
shopping centre helped offset a six
per cent slump at its flagship
Charing Cross store, which Foyles
blamed on Crossrail development at
Tottenham Court Road Tube sta-
tion.
Foyles said its website performed
well, with book and eBook sales up
67 per cent in the period.
RETAIL
ANALYST VIEWS: WERE MORRISONS RESULTS

IN LINE WITH EXPECTATIONS? Interviews by Kasmira Jefford
PHILIP DORGAN | PANMURE GORDON

Christmas trading was slightly below best expectations, although in line
with the market. Morrisons shares were fantastic performers in 2011 and, while
we see no real downside, we expect others within the sector to pick up the baton
in 2012.
CLIVE BLACK | SHORE CAPITAL

We deem such a performance from Morrisons to be a little disappointing
overall with the company performing in line with rather than out-performing the sec-
tor...we note that Asda appears to have had an especially strong festive period...it leads
us to suggest that it has competitively impacted its Yorkshire based rival.
RICHARD HUNTER | HARGREAVES LANSDOWN

Given Morrisons recent drive in propelling its business at a greater rate
than its rivals, expectations had been high. However, the company seems to have
fallen foul of the wider economic environment, whilst the update does not bode
well for Sainsbury and Tesco, who will be reporting later in the week.
Morrisons says its festive

revenues gained slightly
WM MORRISON said squeezed shop-
pers counted their pennies this
Christmas, trading down on items
like champagne for sparkling wine,
as the supermarket chain reported a
slowdown in like-for-like growth.
Britains fourth-biggest supermar-
ket said sales at stores open for at
least a year rose 0.7 per cent, exclud-
ing fuel and VAT in the six weeks to 1
January down from 2.4 per cent
growth in the third quarter.
Chief executive Dalton Philips said
said an extra 800,000 customers visit-
ed its stores each week, but cus-
tomers cut back on spending,
putting an average of one item less in
their basket.
Turkey sales rose by nine per cent
but households also compromised on
finer cuts of meat with pork instead.
Champagne sales by volume dropped
seven per cent while sparkling wine
jumped by 156 per cent.
Analysts were disappointed with
results and had widely expected the
retailer to outperform the market
with a sales growth of around two
per cent. However, Philips said the
group was pleased with their per-
formance given the tough environ-
ment.
While traditionally historic like-
for-like sales at Morrisons are around
three per cent, with consumer confi-
dence at a generation low, you are
going to see a sector that has very low
like-for-like sales, he said.
RETAIL
Haruki Murakamis 1Q84 was one of Foyles bestsellers Pictures: REX, inset REUTERS
News
US video streaming service Netflix
began its attempt to take over the UK
market yesterday, ruffling the feath-
ers of home competitors such as
Lovefilm and Sky Movies.
British customers can pay 5.99
per month for unlimited access to
Netflixs online emporium of films
and TV programmes that can be
streamed on a range of gadgets
including PlayStation 3, Xbox 360
and Wii, as well as through Android
and Apple operated devices.
Netflix, which has more than 20m
subscribers across 47 countries, last
week reported that its members tal-
lied up over 2bn hours of online
streaming in the fourth quarter of
2011.
This came after a worrying third
quarter in which up to a million
Netflix subscribers cancelled their
subscriptions due to hiked fees,
bringing the companys market
value down from over $15bn to $4bn
(9.7bn to 2.6bn) and causing shares
to plunge a record 35 per cent.
Netflix co-founder and chief execu-
tive Reed Hastings said yesterday:
We are starting 2012 in the best pos-
sible way: by giving consumers in the
UK and Ireland an amazing enter-
tainment experience.
Now, you can enjoy as many great
films and TV programmes as you
want, when you want, where you
want, for one low monthly price with
no contracts or commitments.
However, Amazon-owned movie
streaming service Lovefilm refused to
be beaten, yesterday announcing a
step away from its traditional DVD-
rental service with an unlimited
streaming-only package for 4.99 per
month beating Netflixs price by 1.
It also took the opportunity to
reveal reaching a subscriber base of
2m people in the UK due to hundreds
of thousands of new recruits in the
fourth quarter of last year the
fastest customer growth rate at
Lovefilm since 2009.
Simon Calver, chief executive of
Lovefilm, said: We offer customers
an unparalleled range of titles,
including exclusively available block-
busters. Our 2m members can look
forward to us adding even more
world class content, in a variety of
formats, to be delivered across an
ever expanding range of digital plat-
forms.
BSkyB also announced yesterday
its 10 per cent investment in TV-
watching social network Zeebox
which will allow customers to con-
nect with other viewers, find infor-
mation and shop online easily.
Netflix shares jumped 13.8 per
cent to $98.18 in yesterdays trading,
and continued rising after-hours.
INTERVIEW: P20
Netflix and Lovefilm
battle for UK market
BY LAUREN DAVIDSON
TECHNOLOGY
2m
members in
the UK
20m+
members in
the US
5.99
per month
in the UK
4.99
per month
in the UK
DVD
Xbox 360
PlayStation 3
Samsung
iOS
Wii
Android
LG Blu-ray
players
DVD
X box 360
PlayStation 3
Samsung

iOS
Wii
Android
LG Blu-ray
players Smart TV Smart TV
BSKYB has acquired 10 per cent of
social TV network Zeebox in a move
that grants the broadcaster exclusive
rights to use the two-month-old start-
ups technology in its own apps.
While no sum was officially dis-
closed, Zeebox chief executive Ernesto
Schmitt tweeted that BSkyB parted
with more than $15m (9.7m) in the
deal.
Co-created by BBC iPlayer developer
Anthony Rose, Zeebox allows the TV
watcher to see what other viewers are
tuned into and connect with them via
Twitter or Facebook, find information
about programmes, buy products seen
on-screen and search popular topics.
While Zeebox remains an independ-
ent company its app and website will
continue to be available to non-Sky
customers this investment from
BSkyB will fund the social media net-
works global expansion.
Schmitt said: Thanks to Skys back-
ing we now also have the resources
and expertise to set our sights firmly
on international expansion alongside
further innovation here in the UK.
Emma Lloyd, Skys director of
emerging products, said: Millions of
our customers have smartphones and
tablets and regularly use them to
engage with Sky on mobile devices, so
its a natural next step for us.
BSkyB signs $15m
tie-up with Zeebox
Start-up founders extract a tidy sum
AN interesting deal this. Industry
sources put the price of BSkyBs
stake in Zeebox at a rich $15m
(9.7m), implying a valuation of
$150m for a start-up that was
launched just two months ago.
Extrapolating a price tag mightnt
be entirely fair, because Sky is also
buying the rights to integrate
Zeeboxs technology into its own
apps, as well as various sales tie-ups.
But theres no getting away from it:
this is a pricey deal.
Zeebox, which allows viewers to
comment in real time on TV shows
using social media such as Twitter
and Facebook, is a nice product,
which should help ginger up Skys
interactive features. Sky might have
the best content offering in the busi-
ness, but it has trailed arch-rival
Virgin Media in when it comes to
interactivity for some time.
The ability to collect a viewers
real-time response to a particular
show could also be valuable to adver-
tisers, who are always on the look
out for data that helps them
improve their message.
Sky is right to pick Zeebox, a plat-
form that relies on smartphones,
tablets and other so-called compan-
ion devices, for its social media
push. This means the viewer can use
their iPad or iPhone to comment or
rate shows, rather than using an app
that appears directly on their TV
screen. These so-called on-screen
widgets are fiddly, and often diffi-
cult to clear with the various rights-
holders.
What remains unclear is how
widely Skys customers will use
Zeebox. While people are watching
more TV, they are watching more of
it at a time of their choosing not
the schedulers. A platform like
Zeebox assumes we are all watching
TV at the same time, and want to
discuss it around some virtual
water-cooler.
That might be true for some
shows, such as ITV blockbuster The
X-Factor, as well as big-hitting dra-
mas like Downton Abbey and
Sherlock. Indeed the phrase du jour
for television executives is event
programming, which denotes a
renaissance in the kind of collective
telly experience Britain used to have.
That said, linear viewing will consti-
tute a smaller part of what we
watch.
Sky is a cash-rich company that
can afford to have a flutter on this
kind of start-up should it wish. But
the founders of Zeebox have extract-
ed a very tidy price.
BOTTOMLINE
Analysis by David Crow
BY LAUREN DAVIDSON
TECHNOLOGY
SHARES in house builder

Persimmon rose 2.8 per cent yester-
day after it said it expects its under-
lying full-year pre-tax profit to rise
by half, helped by higher sales mar-
gins, and said it was confident of
further growth in 2012 as first time
buyer interest improves.
The largest UK housebuilder by
market value said yesterday that
tighter cost control and sales on
higher margin land meant it
expects underlying operating mar-
gin for the year to be around 10 per
cent. Revenue for the year to 31
December was 1.53bn.
The group said that while the
general economic backdrop to the
UK housing market remained chal-
lenging it had seen encouraging
visitor levels, sales reservations and
stable prices. Forward sales stood at
615m compared to 565m in 2010,
leaving it well placed for 2012.
We will continue to focus on
our operating margins as we start
new sites. Weve started 25 new
sites in the last quarter and are
scheduled to start another 60 sites
in the first six months of this year,
Persimmon chief executive Mike
Farley said.
Those sites will probably be on
newly acquired land and will have
higher margins on them. I think in
this environment we can still look
to grow our profitability even on
fairly stable market conditions.
Persimmon completed 9,360
homes in the period, in line with
the previous year. Its average sell-
ing price stood at 164,000, down
two per cent on the previous year,
due to the rise in the number of
first time buyers aided by the gov-
ernments FirstBuy shared equity
scheme.
Persimmon buoyed
by bullish outlook
BY HARRY BANKS
PROPERTY
UK HOUSE prices continued to fall

at the end of last year, a widely-
regarded survey revealed this
morning, yet prices in the capital
are still bucking the trend.
London was the only region to
show a positive net balance (46 per
cent) of surveyors reporting rising
prices. Across the country as a
whole, a balance of 16 per cent
more surveyors saw prices falling
rather than growing.
The latest survey from the Royal
Institution of Chartered Surveyors
(RICS) revealed that supply to the
housing market is picking up in
London and elsewhere. Twelve
per cent more respondents report-
ed rises rather than falls in new
homes coming onto the market, it
said the third straight month of
rising new instructions.
The sharpest increase in supply
was recorded in London, where
growing instructions were noticed
by a balance of 38 per cent of sur-
veyors the highest figure since
January 2005.
The increasing number of
prospective sellers who placed
their homes on the market in
December is a positive develop-
ment as a lack of stock has been a
big issue in some parts of the
country, said RICSs housing
spokesman Ian Perry.
Meanwhile it appears that mort-
gages have sunk to their most
affordable rates on record, accord-
ing to separate data from Barclays.
People last year paid an average
of 15.4 per cent of their take home
pay towards monthly mortgage
payments, Barclays found, down
from a high of 20.5 per cent in
2008.
London the only region to defy house
price slump throughout rest of UK
HOUSING
News
THE CITY and the Docklands enjoyed a
big lift in commercial property deals
last year, with 6.3bn changing hands
through 108 transactions, new figures
show.
Activity was up 34 per cent by value
on a year ago, according to real estate
firm Cushman & Wakefield, with over-
seas funds making almost half of all
purchases.
Asian buyers made 30 per cent of
the deals, taking the lions share of the
41 per cent of the market made up of
overseas investors, the research said.
And sales such as Nathan Kirshs
purchase of Tower 42 and a deal by a
sovereign wealth fund to buy One Silk
Street have helped boost the total in
the final quarter of 2011.
The West End also fared well, with
4.5bn of transactions and prime rents
up 7.9 per cent for office space and two
per cent for retail.
For central London as a whole,
investors spent 10.9bn on commer-
cial property during last year, up from
9.9bn in 2010.
Looking ahead to 2012, all markets
will be tough but we expect the West
End to continue attracting overseas
equity given the wealth preservation
characteristics of the prime assets
within this area, said Cushmans
head of central London investment
Clive Bull.
A number of European funds are
expected to sell out of central London
properties over the next year, keeping
the market buoyant, adds head of City
investment Bill Tyser.
Property investors who bought in
during the 2008/9 slump are also likely
to take profits this year, he thinks.
Asian clamour for
safe investments
lifts City property
BY MARION DAKERS
PROPERTY
ANALYSIS l Persimmon PLC

p
500
490
480
470
460
506.50
9 Jan
CROSS-CHANNEL ferry operator
SeaFrance sank into official liquida-
tion yesterday after Frances Tribunal
de Commerce ruled a 165m bailout
by the French government illegal.
Eurotunnel told the French press
yesterday that it could mount a sur-
prise bid to buy up SeaFrances fleet in
the wake of the collapse, only to draw
criticism from a rival ferry firm.
A P&O spokesperson confirmed yes-
terday it would consider approaching
competition authorities if Eurotunnel
goes ahead with its bid to expand from
rail to sea.
SeaFrance, which carried over 3.5m
passengers a year, went into receiver-
ship in 2010. The decision puts more
than 1,000 jobs at risk across the chan-
nel and 130 British workers in Dover
look set to lose their jobs.
President Nicolas Sarkozy, who has
strongly backed efforts to find a way of
saving jobs at SeaFrance, said govern-
ment representatives would meet
today to look into options for the firm.
Eurotunnel eyes
up ships after
SeaFrance sinks
BALFOUR BAGS OLYMPIC LEGACY WORK
Balfour Beatty has won contracts to maintain parts of the Olympic Park once the Games
are over. The London-listed engineering firm will run the Queen Elizabeth Olympic Park
and the ArcelorMittal Orbit sculpture, while leisure centre operator Greenwich Leisure
Limited has signed up to operate the aquatics centre and the multi-use arena. The
Olympic Park Legacy Company said naming rights to the venues will be sold later, and
that the facilities will require no further public subsidy to run.
BY PHOEBE TORRANCE
TRANSPORT
PLAYING golf in the office has gone

the same way as four-hour lunches
and six-figure bonuses in the auster-
ity City. Or has it?
Teeing up deals on the putting
green will be business as usual at the
new City offices run by serviced office
provider Co-Work, which is looking
for 101 tenants for its latest (mini) golf
course-equipped opening near
Mansion House. We are big fans of
greenery, co-founder Matt Guild tells
me. So we wanted to bring a bit of
the outside inside without going
down the pot plant route.
Those with long City memories
will remember the office at 33
Queen Street as the site of stockbro-
ker Wills & Co, which made a sharp
exit in February 2010 after the FSA
took a keen interest in its mislead-
ing sales practices.
In November 2011, the 8,000 sq ft
site two floors below City A.M.s HQ
passed into the hands of Guild and ex-
Morgan Stanley banker Tom Kuhn,
who set up Co-Work, a subsidiary of
Lenta Business Centres, after discover-
ing there was a real lack of quality
office space for small companies.
The pair hope the premises infor-
mal meeting rooms, private offices
and call pods for private phonecalls
and the occasional Friday afternoon
sleep will attract City entrepre-
neurs, small businesses and start-ups
to the shared open-plan space.
It is not just somewhere to work,
said Guild. We hope it will become a
community of like-minded people.
All-inclusive rents, if youre interest-
ed, are 649 per month per desk
and not a spider plant to be seen.
NORTHERN ROCK
FTSE 100 SECURITY giant G4S may be
licking its wounds after the collapse
of its 5.2m merger with Danish
cleaning firm ISS.
But expansion continues at its sub-
sidiary G4S Risk Management, which
is stretching its tentacles into Libya to
help rebuild the war-torn countrys
economy and infrastructure.
A G4S consultant has been talking
to the countrys construction and oil
and gas firms for several months, and
former British ambassador to Libya
Richard Northern has been brought
in as a senior adviser. Further
resources will be deployed as and
when clients need it, adds G4S,
which is considering establishing a
full-time Libyan office.
MEXICAN WAVE
ON THE subject of overseas
expansion, Chipotle, the New
York-listed Mexican chain
backed by McDonalds, con-
tinues its march into the UK.
The groups third opening
in London, hears The
Capitalist, will be on the
ground floor and base-
ment at 92/3 St
Martins Lane in
Covent Garden, where
Chipotle has paid a pre-
mium of 350,000 to
oust the previous tenant
St Martins Spice.
The 25-year lease on
the 2,500 sq ft site, at a
rent of 140,000 per
annum, was negotiated
by property agents Shelley Sandzer,
who acted on behalf of landlords
Gascoyne Holdings.
Chipotles brand of classic Mexican
cooking methods is set to become a
big hit in the capital this year, pre-
dicts Shelley Sandzers Nick Weir.
FAMILY FORTUNES
LAST October, former Sun editor
Kelvin MacKenzie told a Leveson sem-
inar examining press ethics that the
Leveson inquiry was a bad idea.
But there he was on the witness
stand yesterday, telling Lord Justice
Leveson how he used to speak to
Rupert Murdoch almost every day
memorably when the media mogul
gave MacKenzie 40 minutes of
non-stop abuse when The Sun
had to pay out 1m in libel dam-
ages to Sir Elton John.
Further details of life with the
Murdochs, meanwhile, emerged from
Rupert Murdochs biographer
Michael Wolff, who lays the blame for
the phone hacking scandal at the feet
of Murdochs chameleon-like heir
James Murdoch. At the heart of the
hacking scandal is James support of
David Cameron, who he saw as a kind
of post-ideological figure, writes
Wolff in next months issue of GQ.
Hence, in an effort to court
Ruperts favour, there was the deal,
brokered by Rebekah Brooks, to have
Cameron hire News Corp loyalist and
former News of the World editor
Andy Coulson which, arguably,
turned the spotlight on the whole
hacking affair.
UNCLE BULGARIA
PETKO Karamotchev (below) doesnt
see Made in Chelsea entrepreneur
Francis Boulle as a competitor.
He just contacted The Capitalist from
Bulgaria to let it be known that his
investment network Merar.com oper-
ates in different markets from
Boulles investment platform
Fundmine, as covered in this col-
umn on 16 November. I dont
see Francis as a rival, but we will be
interested to see Fundmines effect
in the UK, says the founder of the
international information bro-
ker that matchmakes
investors and entrepreneurs.
Karamotchev, just so you
are up to speed, has 1,300
investments projects on
the go, focusing in
markets with
growth such as India,
China and Africa. Later
this month, he will
launch escrow accounts,
data room software and
copyright services.
GOLF RETURNS TO THE
BOARDROOM AS CITY
FIRM TEES UP TENANTS
Chameleon: News Corp heir James Murdoch
15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
Tee time: the putting
green in Co-Works
City office
UPMARKET carmaker Rolls-Royce,
owned by BMW, said it sold a record
number of cars in 2011, benefiting
from a surge in demand for luxury
and bespoke cars from customers in
emerging markets.
The 107-year-old company said it
sold 3,538 cars in 2011, up 31 per cent
on the year before, as sales of its
Phantom and Ghost models both rose,
beating the previous record from 1978,
a year boosted by sales of its classic
Silver Shadow II model.
Rolls-Royce said strong sales growth
was reported across the globe, with
sales in the Asia Pacific region up 47
per cent, North American sales rising
17 per cent and Middle East sales up 23
per cent. It also performed well in the
UK, despite tough economic condi-
tions, with sales up 30 per cent.
Rival Aston Martin said in
November it expected a quarter of its
sales to come from the Asia Pacific
region within two years.
Rolls-Royces parent company BMW,
the worlds biggest maker of premium
cars, yesterday posted record car sales
for 2011 and forecast a boom in luxury
cars would keep it ahead of rivals.
Also yesterday, carmaker
Volkswagen said it aims to sell more
than half a million cars in the US for
the first time in 39 years, building on
its last years global volume that
topped the 8m mark.
The German firm wants to sell 10m
vehicles worldwide by 2018, compared
with nearly 8.16m in 2011 not includ-
ing another 59,000 commercial trucks
from Swedish unit Scania.
A tenth of the mid-term volume tar-
get should stem from the US market,
where it is making strides with the
new Beetle and the Passat sedan.
Volkswagen had US group sales of
444,192 vehicles last year, a 23.3 per
cent increase from 2010, with about 70
per cent coming from its Volkswagen
brand and the remainder from its
other brands such as Audi, Bentley and
Lamborghini.
Volkswagen Group of America head
Jonathan Browning forecast the size of
the US market at between 13.5m and
14m vehicles in 2012.
Rolls-Royces
car sales hit
a record high
BY HARRY BANKS
AUTOMOTIVE
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BRITISH credit information firm
Experian yesterday announced the
death of chief financial officer
Paul Brooks (pictured right).
Paul died suddenly this week-
end at his home in California. Our
thoughts and deepest condolences
are with Pauls family at this
time, the company said in a state-
ment.
Brooks, 58, had been Experians
finance chief since October 2001,
when he joined the worlds largest
credit checking company from car
distributor Inchcape.
Paul was a great friend, a tal-
ented colleague, and an inspira-
tional leader and will be greatly
missed by all those who had the
pleasure of working and dealing
with him, Experian chair-
man John Peace said.
At Inchcape he became
marketing services finance
director in 1994, based in
Singapore.
He previously spent five
years with GKNs industrial
services division, mostly as
divisional chief financial
officer in the USA.
Before that, he worked
for ICIs plastics division
in Brussels and its corporate
reporting group in London.
He qualified as a chartered
accountant with KPMG, having
graduated from Cambridge
University with an eco-
nomics degree.
He also took on non-
executive director role at
Serco Group just under a
year ago.
Serco chair Alastair
Lyons said: He will be
greatly missed by all
of us and our sin-
cerest condo-
lences are with
Pauls family.
Experian announces shock death of
finance boss Brooks at his US home
BY JOHN DUNNE
SERVICES
New legal
row facing
Olympus
AILING Japanese technology firm
Olympus is suing its president and
three of its former directors over
the $1.7bn (1.1bn) accounting scan-
dal.
The maker of cameras and med-
ical equipment has filed proceed-
ings against its president, Shuichi
Takayama (pictured), along with
three former executives identified
by investigators as having engi-
neered or helped cover up the fraud
at the firm, at Tokyo district court.
Takayama is planning to resign as
a result of the lawsuit. Olympus
confirmed the suits had been filed
and said more details would be
revealed today.
On Friday Michael Woodford, the
Briton who was fired after flagging
up suspect payments, dropped his
battle to be reinstated. He said he
would sue Olympus for unfair dis-
missal.
It comes after an outside panel
found ex-chairman Tsuyoshi
Ki kukawa,
f o r me r
e xe c u -
tive vice
p r e s i -
d e n t
Hisashi
Mori and
former audi-
tor Hideo Yamada had
played leading roles in a 13-
year scheme to hide losses
from Olympus investors.
BY PETER EDWARDS
TECHNOLOGY
News
Property investor Patron
picks up forecourt group
PRIVATE equity house Patron Capital
has snapped up forecourt operator
Motor Fuels Group.
The property investment specialist
has taken control of 58 mostly free-
hold petrol filling stations in a joint
venture with a new management
team backed by oil industry veteran
Alasdair Locke. The petrol stations
trade under the BP, Shell, Esso, Total
and Jet brands. William Bannister,
who takes over as chief executive of
MFG, a 240m turnover group, said
the deal provides a sound platform
growth in the sector.
Patron provided the majority of the
equity for the deal, alongside Locke
and management. Investec provided
debt finance.
BY PETER EDWARDS
PRIVATE EQUITY
Investor Alasdair
Locke becomes
chair of MFG
LEGAL & General has become the
latest City firm to offset the cost of
paying out to pensioners who live
longer than expected.
L&G has agreed to take on the
cost of unexpected increases in the
lifespan of 11,500 retired workers
from glassmaker Pilkington in
return for an undisclosed fee, and
transferred 90 per cent of the risk to
Hannover Re under a separate rein-
surance contract. ITV and Rolls-
Royce have struck similar deals to
Pilkington in the last year.
L&G boss Tim Breedon said: In
2011 we completed our first 1bn
pension buy-out, and today we have
announced our first ever longevity
insurance swap. These transactions
leverage our expertise in investment
management and longevity risk
pricing. Hannover Re said the deal,
which covers about 1bn of pension
liabilities, should provide it with
total premium income of 800m.
Hannover is not assuming any
investment or inflation risk.
L&G in 1bn pensions transfer deal
BY PETER EDWARDS
PENSIONS
ANALYSIS l BMW AG

57
56
54
55
56.84
9 Jan
DRUGMAKER AstraZeneca was forced
yesterday to reiterate its 2011 and mid-
term financial forecasts after mistak-
enly releasing confidential company
information to analysts.
The Anglo-Swedish firm described
the released details as out of date
planning information which it said
did not represent its forecast for the
full year for 2011 or for future periods.
The most recent update of the com-
panys financial guidance for 2011 was
issued on 20 December 2011, it said.
The company reaffirms this guid-
ance; the company continues to expect
to report core earnings per share for
the full year 2011 in the lower half of
the range of $7.20 to $7.40.
The group also repeated its expecta-
tions for revenue, margins and cash
deployment for the period between
2010 to 2014, which had been given a
year ago.
AstraZeneca, which suffered a dou-
ble blow to its drug pipeline last
month resulting in a $381.5m
(247.1m) pre-tax charge, said the mis-
taken information had slipped out
during a routine consensus collection
process.
Confidential company information
was inadvertently embedded in a
spreadsheet template sent to the sell-
side analyst community that follows
the company, its statement said.
AstraZeneca already has the weakest
pipeline of its European peers and was
hit hard by a double setback in its
development of a cancer drug called
and an experimental anti-depressant
called TC-5214.
The firm faces potential patent loss-
es on blockbusters like Seroquel for
schizophrenia and Nexium for heart-
burn and ulcers, since it has few other
medicines in late-stage development
other than a new pill for rheumatoid
arrange.
In yesterdays statement it said it
would provide specific financial guid-
ance for 2012 and any updates to its
2010 to 2014 mid-term planning
assumptions when it publishes its 2011
full year results on 2 February.
AstraZenecas shares fell one per
cent yesterday.
AstraZeneca
repeats data
after blunder
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NORWEGIAN oil firm Statoil has
made a second big oil discovery in
the Barents Sea in less than a year
and predicted more discoveries to
come in the region, further boost-
ing the remote Arctic regions oil
prospects.
The discovery will also improve
the oil prospects of Norway, the
worlds eighth-largest oil exporter
and the second-largest for gas,
which has seen declining oil output
since 2001, following a string of dis-
coveries made in the past year.
This is extremely positive, said
John Olaisen, an analyst at Oslo-
based firm Carnegie.
This is an important strategic
asset in a new oil region, so this is
very good... One could expect more
oil finds in the region after this.
Finding oil in the Norwegian part
of the Barents Sea had until recently
proven to be very difficult. The new
oil find at the Havis prospect could
hold between 200m and 300m bar-
rels of oil equivalent.
Together with the previous and
nearby discovery in the region,
called Skrugard, it could provide
between 400m and 600m boe,
Statoil said yesterday.
Over the past 30 years oil compa-
nies have drilled 92 exploration
wells but only a handful have
proven to be hits including
Statoils Snoehvit gas field, and Enis
Goliat oilfield.
Statoil spurs fuel hopes in Norway
after striking oil in the Barents Sea
BY JOHN DUNNE
ENERGY
GSK shares are hit by drug trial results

SHARES in GlaxoSmithKline slipped
four per cent after the announce-
ment of disappointing results from
its new asthma drug yesterday.
Britains biggest drugmaker said it
still planned to put lung medicine
Relovair up for regulatory approval in
the middle of this year.
But clinical trials have not shown
the new treatment to be better than
GSKs flagship asthma drug Advair.
Mark Clark, an analyst at Deutsche
Bank, said the data was poor and the
failure to beat Advair in clinical out-
comes would reduce Relovairs com-
mercial potential and GSKs pricing
power for the product.
This means any advantage is limit-
ed to its once- versus twice-daily for-
mat, he said. Clark also believes GSK
may now have trouble getting
Relovair approved, since the results
were inconsistent across trials and
reports of fatal pneumonia in some
of the studies were a potential con-
cern.
The fact that Relovair, which will
be aimed at sufferers of chronic
obstructive pulmonary disease as
well as asthma, is only inhaled once a
day, was expected to give it an advan-
tage.
Darrell Baker, senior vice president
at GSK said: Having undertaken an
initial assessment of these data we
believe they support our plan to seek
global approvals of this once-daily
medicine for the treatment of
patients with COPD and asthma.
BY HARRY BANKS
PHARMACEUTICALS
PROVEXIS SPONSORS OLYMPIC ROWERS

NEWS | IN BRIEF
Black cab firm in profit alert
Black cab maker Manganese Bronze
has said it made no profit in 2011 and
could fall miss targets this year. The
group blamed the weak UK economy,
uncertainty over the global economic
outlook and a delay in fulfilling an
order for 1,000 taxis from Azerbaijan.
The firm sold 1,502 taxis in the UK last
year, compared with 1,653 in 2010 - a
fall of 9.1 per cent. However interna-
tional sales are growing, the company
said. Manganese Bronze sold 705 vehi-
cles compared with 226 in 2010. A
delay in securing finance means that
the last 500 taxis of its Albanian order
will now be shipped by 30 January at
the earliest. The overall impact of
lower UK sales and the delayed fulfil-
ment of the Azerbaijan order will pre-
vent the group from achieving a
profitable result for the year ended 31
December 2011, Manganese Bronze
said.
Enquest makes Kraken deal
UK-focused oil firm Enquest yesterday
announced a deal to buy a 20 per cent
stake in the Kraken oil discovery in the
North Sea. The deal, which lifted
Enquests share price 2.7 per cent, also
boosts Enquests new partner in the
field, smaller explorer Nautical
Petroleum. Enquest moving in
strengthens the partnership there and
endorses the commerciality of the
project moving forward, Canaccord
analyst Lindsay Wheeler said. Enquest
bought the stake in the Kraken asset
from Canamens. Analysts at Peel Hunt
called the deal a clear positive for
Nautical.
News
ANALYSIS l AstraZeneca PLC
p
3,060
3,050
3,040
3,030
3,020
3,010
3,000
3009.00
9 Jan
ANALYSIS l Statoil ASA
NOK
162
160
158
156
155.00
9 Jan
Provexis has signed a five-year deal to be the official sup-
plier of drinks and nutrition products for the GB Rowing
Team. The sponsorship renews a relationship between the
Aim-listed sports nutrition company and the team (pic-
tured) and takes in the Olympics. Picture: GETTY
Shepherd Construction
Mark Tant has joined the contractor as
managing director of the south divi-
sion, based in London. Tant joins after a
29-year career at Willmott Dixon,
where he was most recently managing
director for south London and the
southern home counties.
Akin Gump
Harry Keegan has been promoted to the
partnership of Akin Gump Strauss
Hauer & Feld, based in the law firms
London office. Keegan is a member of
the firms international corporate trans-
actions practice, specialising in UK and
cross-border corporate finance transac-
tions, including capital markets transac-
tions, M&A and private equity.
Healthcare Brands International
Barry Clare has joined the board of
Healthcare Brands International as
chairman, and Simon Pulsford joins as a
non-executive director. Clare is the for-
mer chief executive of Boots Healthcare
International and Betapharm, and
Pulsford joins following his retirement
from GSK Consumer Health, where he
was chief strategy officer.
Aberdeen Asset Management
Sonja Tilly has been appointed as an
analyst in the fund managers multi-
manager team. Tilly joins from
Broadstone Pensions & Investments,
where she was responsible for fixed
income manager research and selection.
Nomura
Andy Chaytor has been appointed as an
executive director, senior macro strate-
gist in Nomuras global macro strategy
team. Chaytor joins from RBS, where he
specialised in rates strategy, credit strat-
egy and global macro.
Lombard Odier
The Swiss private bank has appointed
Pranay Gupta as chief investment offi-
cer for Asia and global head of invest-
ment solutions. Gupta moves to the
firms Hong Kong office from ING,
where he was chief investment officer
of the banks investment management
division for Asia Pacific.
KPMG
KPMG has strengthened its specialist
defined contributions pensions adviso-
ry team by hiring Andy Seed, formerly
of Deloitte, as a director.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
US stocks up amid
cautious investing
U
S stocks ended slightly higher
yesterday in a light-volume
session as investors stayed
cautious ahead of corporate
earnings and key auctions for
European debt this week.
Alcoa advanced 0.8 per cent to
$9.50 in extended trading after the
largest US aluminium producer
reported fourth-quarter revenue
that beat Wall Street expectations,
though a plunge in aluminium
prices helped push the company
into a loss.
As the first company in the Dow
to report results, Alcoa is seen as
the unofficial start to the earnings
season. In the regular session Alcoa
rose three per ent to $9.43.
After breaking out of the gate
with strong gains on the first day of
trading in January, stocks have been
confined to a tight range in daily
moves and volume has been low.
The S&P 500 faces strong technical
resistance as it has been unable to
pierce through 1,285, the closing
high set in late October.
The Dow Jones industrial average
gained 32.62 points, or 0.26 per
cent, to 12,392.69. The Standard &
Poors 500 Index gained 2.89 points,
or 0.23 per cent, to 1,280.70. The
Nasdaq Composite Index gained
2.34 points, or 0.09 per cent, to
2,676.56.
B
RITAINS FTSE 100 closed
down yesterday with finan-
cials under pressure after a
warning by German
Chancellor Angela Merkel reignited
fears of a Greek default, while
GlaxoSmithKline fell on worries
over its key lung drug Relovair.
Londons blue chip index closed
down 37.42 points or 0.7 per cent at
5,612.26, with volumes just 88 per
cent of their already weak 90-day
average and as US equities gave up
early gains.
Traders said FTSE 100 bulls also
encountered technical resistance
around 5,700 a level the index
failed to hold sustain last week --
and with the relative strength
index indicating UK-listed blue
chips were approaching overbought
territory after last weeks 1.4 per
cent gain.
Banks ebbed lower as investors
mulled over the latest press confer-
ence from Angela Merkel and
French President Nicolas Sarkozy,
which traders said was uninspir-
ing.
The main concern revolved
around Merkels warning that
Greece would not be paid its next
aid tranche without rapid progress
on its second rescue package.
Banks have already been asked to
take a 50 per cent haircut on their
Greek debt, and there are broader
concerns over their balance sheets
as European peer UniCredits capi-
tal raising plans failed to convince
investors.
With Eurozone worries back to
the fore, Barclays fell 4.5 per cent.
Old Mutual dropped 1.4 per cent
and hedge fund Man Group was
down 4.8 per cent.
Financials under pressure as
Greek default fears rekindled
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 ARM Holdings
575
600
625
550
Nov Dec Jan
p
613.50
9 Jan
ARM HOLDINGS
FinnCap rates the Cambridge-based chipmaker as a hold with a target
price of 575p, saying the company is at the heart of the mobile revolution,
with its low power products ubiquitous in smartphone and tablet proces-
sors. The broker says the shares are worth picking up on a bad day, with
plenty of upside from more devices using ARM chips, as well as royalties
from additional intellectual property due to it owning the platform.
ANALYSIS l BT
180
185
190
195
200
175
Nov Dec Jan
p
196.40
9 Jan
BT GROUP
JP Morgan Cazenove rates the telecoms group as overweight and reduces its
target price from 240p to 210p to reflect its updated pension deficit assump-
tions. The broker expects the gross actuarial deficit to be in the range of 5-8bn,
having deteriorated recently due to falling gilt yields impacting the liability dis-
count rate. Despite this, it sees scope for near-term positive news on pensions,
and expects BT to look to pre-pay contributions before the end of March.
ANALYSIS l Mitchells and Butlers
230
240
250
220
Nov Dec Jan
p
245.00
9 Jan
MITCHELLS AND BUTLERS
Goldman Sachs lowers its six-month price target on the pub group from
303p to 290p with a rating of neutral as it introduces 2014 estimates to
its forecasts. The broker sees limited growth in profit for the year ahead
despite elevated capital expenditure, and prefers Greene King within the pub
sector. The key negative risks to the brokers view is a significant increase in
UK unemployment, which would further squeeze consumer spending.
Just-Eat
The worlds largest online takeaway business
has appointed John Hughes as chairman to
replace Klaus Nyengaard, who continues as
group chief executive. Hughes previously held
senior positions at Thales Group, Lucent
Technologies and Hewlett Packard. He is also
chairman of Telecity Group and a non-executive
Director of CSG Systems International. In addi-
tion, he is an ambassador for the Alzheimers
Society and was awarded a CBE for services
to international telecommunications in 2011.
News
40%
SKISET.CO.UK
AND SAVE
UP T0
RENT YOUR SKIS
ONLINE
BOOK ONLINE
COLLECT IN RESORT
HASSLE FREE SKI RENTAL
p
28Oct 10Oct 17Nov 7Dec 29Dec
5,800
5,200
5,300
5,400
5,100
5,600
5,700
5,500
ANALYSIS l FTSE
5,612.26
9 Jan
Interview
The man gunning for Sky in the
battle to be king of the movies
Netflix boss Reed
Hastings may be
tech savvy but hes
still competing by
the oldest measure
in the book: price
I
TS a brave man who takes on BSkyB.
The UKs undisputed champion of
subscription TV continues to go
from strength to strength, seemingly
impervious to the problems facing its
biggest shareholder.
But there is a new kid in town who
wants to muscle in on the action. Netflix
launched its video streaming service in
the UK yesterday and, while it is still a rel-
ative unknown here, it is already estab-
lished in 46 other regions, with over 20m
subscribers.
It is now preparing a marketing blitz
in the hope it can emulate here the suc-
cess that has seen it become one of the
biggest online movie vendors in the
world. But to do that, it will have to go
through Sky.
Leading the charge is chief executive
Reed Hastings, a man whose very name
seems to guarantee him success. It is the
kind of name youd choose if you wanted
to reinvent yourself, like when Homer
Simpson started calling himself Max
Power. If he hadnt been a chief executive,
Hastings would probably have been an
astronaut or a news anchor or the
President.
In person, he cuts an unassuming fig-
ure, part computer programmer, part his-
tory professor, with a corduroy jacket
and neatly-cropped goatee.
But the mild-mannered chief executive
has Sky very much in his sights: It hasnt
had much competition for a long time
were going to help provide that. What
we see in the UK is a very developed mar-
ket with a lot of demand... We see a great
opportunity.
Hastings, however, knows he has his
work cut out. Sky Movies has deals with
all six of the major Hollywood studios,
giving it first access to movies as they
become available to rent.
Its difficult, admits Hastings. Sky
has a very strong position. But as we grow
we will bid against them and perhaps
win one or two and that will help.
We launched 18 months ago in
Canada and after a year we were able to
win the Paramount deal there.
Sometimes you just have to build up,
then you can win.
What will constitute winning? We
want millions of members in the UK. Sky
Movies has close to 5m users we want to
be competitive.
Hastings is less keen to talk about the
role regulators could play, with Skys
dominance of the market a longstanding
source of consternation amongst its
rivals.
I dont know what regulators will do,
he says. Im sure theyll do their job. We
need to focus on what we can control.
Netflix started business as a DVD
rental operation, the US equivalent of
LoveFilm, although Hastings says he
knew it would end up moving into
streaming thats why were not called
Postflix.
Video streaming, or over-the-top con-
tent, is the future of the TV industry, he
says: Online is going to replace broad-
cast in the same way the mobile phone
has replaced the landline. All the growth
will be in the mobile side of things rather
than broadcast.
Hastings bet on online movies has
paid dividends. Netflix has seen a mete-
oric rise, with its stock surging more
than 200 per cent in 2010 alone.
The last year, however, has been a
bumpy ride. The former darling of Wall
Street fell from a share-price high of
almost $300 to a low of $63 after a string
of blunders. A disastrous price hike in its
DVD business led to a loss of at least
800,000 subscribers, with more thought
to be heading for the door.
Announcing plans to split the DVD
rental arm from its streaming business,
before performing a screeching U-turn,
made matters worse. Jittery investors
were also unconvinced by forecasts that
the UK business could take two years to
become profitable. Hastings says this is
normal but has still opted to halt
Netflixs international expansion while
the UK operation beds in and the firm
returns to global profitability.
Against this backdrop, the UK business
takes on even greater significance. The
question is, will it succeed where others
have failed?
Its service is impressive. The slick inter-
face has been ported onto platforms
including the Xbox 360, Apple TV and
the Nintendo Wii. Xbox Kinect owners
can even scroll through movies with
their hands like Tom Cruise in Minority
Report.
Netflix can also learn what you like
in a similar way to Virgin Medias TiVo
and give you personalised recommenda-
tions. The best part, though, is the price
tag. At just 5.99 a month (for unlimited
access Hastings says multiple pricing
options would dilute its offering), it is
astonishingly cheap.
He says Netflix has hit the UK at an
ideal time, with demand for online video
surging despite the relatively consistent
popularity of broadcast TV.
Services like BBC iPlayer and 4oD have
whetted the publics appetite for online
video and YouView, the collaboration
between firms including BT, the BBC and
ITV, is also preparing for its long-awaited
launch.
Since its sale to Amazon, LoveFilm has
also stepped up a gear, penning deals
with the BBC and ITV for shows includ-
ing Doctor Who, Prime Suspect and
Planet Earth. Hastings, though, isnt wor-
ried: Well compete a little with
LoveFilm, he says, but mostly it will be
the two of us competing with Sky.
With the TV market evolving at a
dizzying rate, 2012 could be the year Sky
finally sees a real challenge to its domi-
nance.
Reed showing off
the Netflix service
on a PlayStation 3
yesterday
Sky hasnt had much
competition for a long
time were going to help
provide that. What we
see in the UK is a very
developed market with a
lot of demand.
Online is going to replace
broadcast in the same
way the mobile phone has
replaced the land line. All
the growth will be in the
mobile side of things
rather than broadcast.
1983
Graduated from Bowdoin College with a BA, having won
plaudits in its mathematics department
1988
Gained a master's degree in computer science from
Stanford University
1991
Served as chief executive, president and director of
Pure Software, which he founded. Pure eventually
merged with Atria, combining their trouble-shooting
software portfolio
1997
Co-founded Netflix with Marc Randolph. Hastings still
runs the video streaming website, which has expanded
into 47 territories
Directorships
Hastings is on the board of technology giants including
Facebook and Microsoft
Other interests
Hastings is an educational activist, championing reform
of the education system. He has served as President of
the California State Board of Education
CV | REED HASTINGS
On the future of TV On competing with Sky
WORDS BY STEVE DINNEEN
ANALYSIS l Netflix Inc
$
85
95
90
80
75
98.18
9 Jan
21
Wealth Managment
LON GD ONCE FIX AM...........1618.00 -3.00
SILVER LDN FIX AM ..................28.90 -0.22
MAPLE LEAF 1 OZ ....................31.49 2.50
LON PLATINUM AM................1405.00 -12.00
LON PALLADIUM AM...............617.00 -16.00
ALUMINIUM CASH .................2019.00 16.00
COPPER CASH ......................7514.00 104.00
LEAD CASH...........................1975.00 -40.00
NICKEL CASH......................18675.00 95.00
TIN CASH.............................19745.00 335.00
ZINC CASH ............................1827.00 -8.00
BRENT SPOT INDEX................113.59 1.03
SOYA .....................................1189.50 -11.75
COCOA..................................2028.00 0.00
COFFEE...................................221.75 2.20
KRUG.....................................1680.50 19.40
WHEAT ....................................155.78 3.52
AIR LIQUIDE........................................94.78 -0.12 100.65 80.90
ALLIANZ..............................................72.59 -1.29 108.85 56.16
ANHEUS-BUSCH INBEV ....................47.50 1.08 48.35 33.85
ARCELORMITTAL...............................14.70 -0.04 28.55 10.47
AXA........................................................9.54 -0.26 16.16 7.88
BANCO SANTANDER...........................5.45 -0.01 9.20 5.05
BASF SE..............................................55.67 -0.25 70.22 42.19
BAYER.................................................51.25 -0.52 59.44 35.36
BBVA......................................................6.06 -0.17 9.17 4.94
BMW ....................................................56.84 1.29 73.85 43.49
BNP PARIBAS.....................................27.90 -0.56 59.93 22.72
CARREFOUR ......................................16.61 -0.01 31.98 14.66
CRH PLC .............................................14.62 -0.02 17.40 10.28
DAIMLER.............................................36.73 0.26 59.09 29.02
DANONE..............................................48.98 0.72 53.16 41.92
DEU.BOERSE OFFRE ........................39.65 -0.05 55.75 35.46
DEUTSCHE BANK..............................26.37 -0.64 48.70 20.79
DEUTSCHE TELEKOM.........................8.80 -0.06 11.38 7.88
E.ON.....................................................16.79 -0.23 25.54 12.50
ENEL......................................................3.05 -0.04 4.86 2.78
ENI .......................................................16.25 -0.09 18.66 11.83
FRANCE TELECOM............................11.69 -0.10 16.65 11.12
GDF SUEZ ...........................................20.53 -0.14 30.05 17.65
GENERALI ASS...................................11.50 -0.15 17.05 10.34
IBERDROLA..........................................4.57 -0.02 6.30 4.16
INDITEX ...............................................63.98 0.93 69.40 50.92
ING GROEP CVA...................................5.49 0.04 9.50 4.21
INTESA SANPAOLO.............................1.10 -0.04 2.47 0.85
KON.PHILIPS ELECTR.......................15.65 0.00 25.45 12.01
L'OREAL..............................................81.62 0.44 91.24 68.83
LVMH..................................................110.05 1.15 132.65 94.16
MUNICH RE.........................................91.90 -1.38 126.00 77.80
NOKIA....................................................4.04 -0.12 8.49 3.33
REPSOL YPF.......................................23.72 0.39 24.90 17.31
RWE.....................................................27.69 -0.69 55.70 21.15
SAINT-GOBAIN...................................29.16 -0.01 47.64 26.07
SANOFI ................................................55.79 -0.46 57.42 42.85
SAP......................................................42.67 0.47 46.15 32.88
SCHNEIDER ELECTRIC.....................42.70 0.27 61.83 35.00
SIEMENS .............................................75.75 -0.37 99.39 62.13
SOCIETE GENERALE.........................15.00 -0.57 52.70 14.32
TELECOM ITALIA..................................0.81 0.00 1.16 0.70
TELEFONICA ......................................13.01 -0.04 18.75 12.50
TOTAL..................................................39.96 -0.03 44.55 29.40
UNIBAIL-RODAMCO SE...................132.10 -0.50 162.95 123.30
UNICREDIT............................................2.29 -0.09 12.06 2.20
UNILEVER CVA...................................26.48 0.16 27.16 20.90
VINCI ....................................................33.85 0.11 45.48 28.46
VIVENDI ...............................................16.32 -0.23 22.07 14.10
VOLKSWAGEN VORZ ......................121.75 -2.25 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5612.26 -37.42 -0.66
FTSE 250 INDEX . . . . . . . 10251.13 5.27 0.05
FTSE UK ALL SHARE . . . . 2880.93 -16.10 -0.56
FTSE AIMALL SH . . . . . . . . 716.13 3.65 0.51
DOWJONES INDUS 30 . . 12392.54 32.62 0.26
S&P 500 . . . . . . . . . . . . . . . 1280.70 2.89 0.23
NASDAQ COMPOSITE . . . 2676.56 2.34 0.09
FTSEUROFIRST 300 . . . . . 1008.69 -5.04 -0.50
NIKKEI 225 . . . . . . . . . . . . . 8390.35 -98.36 -1.16
DAX 30 PERFORMANCE. . 6017.23 -40.69 -0.67
CAC 40 . . . . . . . . . . . . . . . . 3127.69 -9.67 -0.31
SHANGHAI SE INDEX . . . . 2225.89 62.50 2.89
HANG SENG. . . . . . . . . . . 18865.72 272.66 1.47
S&P/ASX 20 INDEX . . . . . . 2480.10 0.00 0.00
ASX ALL ORDINARIES . . . 4161.50 -3.00 -0.07
BOVESPA SAO PAOLO. . 58885.53 285.16 0.49
ISEQ OVERALL INDEX . . . 2932.51 42.64 1.48
STRAITS TIMES . . . . . . . . . 2691.28 -24.31 -0.90
IGBM. . . . . . . . . . . . . . . . . . . 874.79 1.65 0.19
SWISS MARKET INDEX. . . 5987.54 -26.29 -0.44
Price Chg %chg
3M........................................................83.87 0.50 98.19 68.63
ABBOTT LABS ...................................55.85 -0.01 56.84 45.07
ALCOA ..................................................9.43 0.27 18.47 8.45
ALTRIA GROUP..................................28.50 -0.22 30.40 23.20
AMAZON.COM..................................178.56 -4.05 246.71 160.59
AMERICAN EXPRESS........................48.39 0.12 53.80 41.30
AMGEN INC.........................................64.20 -0.56 65.19 47.66
APPLE...............................................421.73 -0.67 427.75 310.50
AT&T....................................................29.66 -0.02 31.94 27.20
BANK OF AMERICA.............................6.27 0.09 15.31 4.92
BERKSHIRE HATAW B.......................76.29 -0.10 87.65 65.35
BOEING CO.........................................74.53 0.55 80.65 56.01
BRISTOL MYERS SQUI ......................33.91 -0.31 35.44 20.05
CATERPILLAR....................................97.10 1.34 116.55 67.54
CHEVRON.........................................109.49 1.18 110.99 86.68
CISCO SYSTEMS................................18.97 0.12 22.34 13.30
CITIGROUP.........................................29.08 0.53 51.50 21.40
COCA-COLA.......................................68.93 0.00 71.77 61.29
COLGATE PALMOLIVE......................89.78 -0.02 94.89 74.86
CONOCOPHILLIPS.............................72.94 0.28 81.80 58.65
CVS/CAREMARK................................41.79 0.33 41.86 31.30
DU PONT(EI) DE NMR........................46.43 0.39 57.00 37.10
EXXON MOBIL....................................85.50 0.38 88.23 63.47
GENERAL ELECTRIC.........................18.86 0.21 21.65 14.02
GOOGLE A........................................622.46 -30.27 670.25 473.02
HEWLETT PACKARD.........................26.44 0.04 49.39 19.92
HOME DEPOT.....................................43.23 0.03 43.30 28.13
IBM.....................................................181.59 -0.95 194.90 146.75
INTEL CORP .......................................25.47 0.22 26.78 19.16
J.P.MORGAN CHASE.........................35.30 -0.06 48.36 27.85
JOHNSON & JOHNSON.....................64.93 0.10 68.05 57.50
KRAFT FOODS A................................37.72 0.17 38.05 24.30
MC DONALD'S CORP ........................99.64 -0.96 101.59 72.14
MERCK AND CO. NEW......................38.39 -0.08 39.00 29.47
MICROSOFT........................................27.74 -0.37 29.46 23.65
OCCID. PETROLEUM.........................96.93 1.16 117.89 66.36
ORACLE CORP...................................27.03 0.10 36.50 24.72
PEPSICO.............................................65.73 0.34 71.89 58.50
PFIZER ................................................21.82 0.25 22.00 16.63
PHILIP MORRIS INTL .........................76.86 -0.22 79.96 55.85
PROCTER AND GAMBLE ..................66.64 0.28 67.72 56.57
QUALCOMM INC ................................55.91 -0.25 59.84 45.98
SCHLUMBERGER ..............................68.82 1.04 95.64 54.79
TRAVELERS CIES..............................59.69 0.34 64.17 45.97
UNITED TECHNOLOGIE ....................74.10 0.20 91.83 66.87
UNITEDHEALTH GROUP...................52.72 -0.06 53.50 37.74
VERIZON COMMS ..............................38.37 0.04 40.48 32.28
WAL-MART STORES..........................59.18 0.18 61.06 48.31
WALT DISNEY CO ..............................39.75 -0.16 44.34 28.19
WELLS FARGO & CO.........................29.30 0.36 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.298 0.00
LIBOR Euro - 12 months ................1.842 -0.01
LIBOR USD - overnight...................0.149 0.00
LIBOR USD - 12 months.................1.128 0.05
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................2.980 -0.04
European repo rate.........................0.157 0.00
Euro Euribor ....................................0.546 -0.01
The vix index ...................................21.36 -0.85
The baItic dry index ........................1.426 0.73
Markit iBoxx...................................242.29 -0.22
Markit iTraxx..................................177.08 0.78
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .289.2 1.4 361.1 248.1
Chemring Group . . . .399.0 -3.5 736.5 368.8
Cobham . . . . . . . . . . .182.5 -1.3 236.5 165.9
Meggitt . . . . . . . . . . . .356.5 -0.5 397.6 304.9
QinetiQ Group . . . . . .132.6 1.4 137.4 101.5
RoIIs-Royce Group . .756.5 1.0 764.0 557.5
Senior . . . . . . . . . . . . .185.0 7.8 190.6 132.6
UItra EIectronics . . .1492.0 20.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .190.4 -1.0 245.0 157.0
BarcIays . . . . . . . . . . .178.1 -8.3 333.6 138.9
HSBC HoIdings . . . . .491.4 -6.8 730.9 463.5
LIoyds Banking Gr . . .26.2 -0.9 69.6 21.8
RoyaI Bank of Sco . . .20.1 -0.4 49.0 17.3
Standard Chartere .1397.5 -23.5 1744.5 1169.5
AG Barr . . . . . . . . . .1202.0 -21.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .331.8 -0.4 471.8 289.9
Diageo . . . . . . . . . . .1416.0 1.5 1428.0 1112.0
SABMiIIer . . . . . . . . .2341.5 9.0 2354.5 1979.0
AZ EIectronic Mat . . .259.8 -1.2 338.1 206.1
Croda Internation . .1825.0 0.0 2081.0 1456.0
EIementis . . . . . . . . . .138.0 2.9 187.4 107.5
Johnson Matthey . .1922.0 4.0 2119.0 1523.0
Victrex . . . . . . . . . . .1120.0 -12.0 1590.0 1025.0
YuIe Catto & Co . . . . .171.7 2.7 253.0 148.0
C/$ 1.2737 0.0013
C/ 0.8256 0.0007
C/ 97.922 0.0103
/C 1.2111 0.0012
/$ 1.5430 0.0006
/ 118.59 0.1231
FTSE 100
5612.26
37.42
FTSE 250
10251.13
5.27
FTSE ALLSHARE
2880.93
16.10
DOW
12392.54
32.62
NASDAQ
2676.56
2.34
S&P 500
1280.70
2.89
RPC Group . . . . . . . .381.4 4.1 385.0 231.5
Smiths Group . . . . . .940.0 -2.0 1429.0 869.5
Brown (N.) Group . . .238.1 -1.2 311.2 227.0
Carpetright . . . . . . . . .543.0 30.0 835.5 375.0
Debenhams . . . . . . . . .56.9 -1.7 74.8 51.2
Dignity . . . . . . . . . . . .842.5 11.0 854.5 648.5
Dixons RetaiI . . . . . . . .9.6 -0.1 23.7 9.4
DuneImGroup . . . . . .453.0 2.0 527.5 383.9
HaIfords Group . . . . .295.0 2.4 435.0 268.6
Home RetaiI Group . . .86.7 -5.6 235.0 72.5
Inchcape . . . . . . . . . .292.6 -5.0 425.4 268.1
JD Sports Fashion . .700.0 40.0 1030.0 570.0
Kesa EIectricaIs . . . . .66.1 -0.9 164.0 60.2
Kingfisher . . . . . . . . .251.6 1.9 287.1 217.0
Marks & Spencer G . .308.5 -2.2 402.2 301.8
Next . . . . . . . . . . . . .2573.0 -6.0 2810.0 1868.0
Sports Direct Int . . . .233.8 3.8 266.2 159.0
WH Smith . . . . . . . . . .526.0 -1.0 558.0 433.8
Smith & Nephew . . . .600.5 -6.5 742.0 521.0
Synergy HeaIth . . . . .874.0 8.0 981.0 808.0
Barratt DeveIopme . . .95.0 2.1 119.0 67.5
BeIIway . . . . . . . . . . . .695.0 8.5 776.5 540.5
BerkeIey Group Ho .1289.0 33.0 1360.0 884.5
BaIfour Beatty . . . . . .272.9 -0.7 357.3 214.6
CRH . . . . . . . . . . . . .1206.0 -10.0 1700.0 1053.0
GaIIiford Try . . . . . . . .478.0 13.5 530.0 307.5
Kier Group . . . . . . . .1420.0 17.0 1458.0 1097.0
Drax Group . . . . . . . .557.0 1.0 581.5 371.9
SSE . . . . . . . . . . . . . .1292.0 7.0 1423.0 1159.0
Domino Printing S . .527.5 2.0 705.0 434.3
HaIma . . . . . . . . . . . . .338.0 1.1 429.6 306.3
Laird . . . . . . . . . . . . . .152.1 2.7 207.0 127.9
Morgan CrucibIe C . .271.4 -5.4 357.1 224.0
Oxford Instrument . .966.0 -12.5 1010.0 600.5
Renishaw . . . . . . . . .1046.0 -3.0 1886.0 800.0
Spectris . . . . . . . . . .1344.0 17.0 1679.0 1039.0
Aberforth SmaIIer . . .518.0 4.5 714.0 494.0
AIIiance Trust . . . . . .346.0 -1.5 392.7 310.2
Bankers Inv Trust . . .391.0 4.0 428.0 346.5
BH GIobaI Ltd. GB .1190.0 3.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.7 -0.3 12.2 10.4
BH Macro Ltd. EUR . . .19.9 0.1 20.2 15.9
BH Macro Ltd. GBP 2050.0 8.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.7 -0.2 20.2 15.9
BIackRock WorId M .634.0 2.5 815.5 574.5
BIueCrest AIIBIue . . .167.5 -0.4 176.2 162.4
British Assets Tr . . . .118.9 -0.5 140.5 109.0
British Empire Se . . .423.0 2.9 533.0 404.0
CaIedonia Investm .1395.0 -6.0 1905.0 1337.0
City of London In . . .284.6 -2.4 306.9 257.0
Dexion AbsoIute L . .136.8 0.1 151.0 130.0
Edinburgh Dragon . .220.2 -0.2 261.5 201.4
Edinburgh Inv Tru . . .476.0 -1.4 492.2 414.9
EIectra Private E . . .1424.0 2.0 1755.0 1287.0
F&C Inv Trust . . . . . .289.7 -1.0 327.9 261.5
FideIity China Sp . . . . .74.2 1.0 119.0 70.0
FideIity European . . .988.0 1.0 1287.0 912.0
HeraId Inv Trust . . . . .463.0 -3.0 545.5 419.0
HICL Infrastructu . . . .118.3 0.0 121.3 112.7
Impax Environment . .94.8 -0.3 128.9 88.5
John Laing Infras . . .109.0 0.0 109.5 103.4
JPMorgan American .876.0 -5.5 916.0 721.5
JPMorgan Asian In . .186.0 1.0 247.0 170.1
JPMorgan Emerging .516.5 -0.5 632.5 480.1
JPMorgan European .650.0 -2.5 983.5 624.0
JPMorgan Indian I . . .327.2 2.2 473.4 313.1
JPMorgan Russian .495.0 6.5 750.0 415.1
Law Debenture Cor . .338.0 -1.0 385.0 321.0
MercantiIe Inv Tr . . . .862.0 -3.0 1137.0 823.0
Merchants Trust . . . .370.3 -1.1 431.8 341.5
Monks Inv Trust . . . .309.0 0.0 367.9 298.1
Murray Income Tru . .619.0 -9.0 673.0 568.0
Murray Internatio . . .932.5 -4.5 991.5 818.5
PerpetuaI Income . . .254.2 -4.6 276.0 236.5
PersonaI Assets T .33930.0 80.0 34060.030210.0
PoIar Cap TechnoI . .327.7 -1.3 391.2 299.5
RIT CapitaI Partn . . .1210.0 1.0 1360.0 1173.0
Scottish Inv Trus . . . .456.9 -1.0 524.0 417.0
Scottish Mortgage . .595.0 -3.0 781.0 565.0
SVG CapitaI . . . . . . . .213.3 3.3 279.8 165.1
TempIe Bar Inv Tr . . .870.0 -3.0 952.0 791.0
TempIeton Emergin .552.0 2.0 684.5 497.0
TR Property Inv T . . .137.6 -0.7 206.1 136.2
TR Property Inv T . . . .60.5 -0.8 94.0 59.8
Witan Inv Trust . . . . .448.3 -2.6 533.0 401.5
3i Group . . . . . . . . . . .175.6 -2.7 332.0 166.9
3i Infrastructure . . . .120.0 -0.5 124.0 113.1
Aberdeen Asset Ma .216.0 -0.6 240.0 167.8
Ashmore Group . . . .314.5 -6.8 420.0 301.5
Brewin DoIphin Ho . .140.0 -1.5 185.4 113.7
CameIIia . . . . . . . . . .9362.0-148.010950.08800.0
CharIes TayIor Co . . .127.5 2.5 165.0 115.6
City of London Gr . . . .64.0 0.0 93.6 61.3
City of London In . . .332.0 -2.3 458.3 304.3
CIose Brothers Gr . . .598.5 0.0 888.5 590.0
CoIIins Stewart H . . . .90.8 0.3 91.3 48.5
F&C Asset Managem .59.5 -1.3 92.9 56.1
Hargreaves Lansdo .412.2 -11.8 646.5 402.5
HeIphire Group . . . . . . .1.9 -0.1 17.4 1.4
Henderson Group . . . .97.8 -2.9 173.1 95.1
Highway CapitaI . . . . .12.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .312.1 -7.2 570.5 311.6
IG Group HoIdings . .489.0 -3.1 526.5 393.6
Intermediate Capi . . .227.6 -4.6 360.3 197.9
InternationaI Per . . . .156.9 -3.1 388.8 156.2
InternationaI Pub . . . .119.3 -0.2 121.5 108.6
Investec . . . . . . . . . . .335.5 -1.8 534.0 318.4
IP Group . . . . . . . . . . . .81.0 1.3 81.3 32.2
Jupiter Fund Mana . .188.5 -7.5 337.3 184.9
Liontrust Asset M . . . .74.0 0.0 87.5 57.9
LMS CapitaI . . . . . . . . .55.0 0.0 64.8 48.8
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .779.5 -1.5 1076.0 756.5
Lonrho . . . . . . . . . . . . . .9.7 0.0 19.8 8.9
Man Group . . . . . . . . .107.3 -5.4 311.0 106.8
Paragon Group Of . .178.1 -0.4 206.1 134.6
Provident Financi . . .933.0 -2.0 1124.0 869.5
Rathbone Brothers .1038.0 3.0 1257.0 977.0
Record . . . . . . . . . . . . .12.9 0.0 35.8 12.5
RSM Tenon Group . . . .8.0 -0.5 66.3 7.7
Schroders . . . . . . . .1256.0 -39.0 1922.0 1183.0
Schroders (Non-Vo .1027.0 -34.0 1554.0 970.0
TuIIett Prebon . . . . . .263.3 1.0 428.6 262.2
WaIker Crips Grou . . .45.0 0.0 51.5 43.0
BT Group . . . . . . . . . .196.4 0.4 204.1 161.0
CabIe & WireIess . . . .37.0 0.3 51.2 31.3
CabIe & WireIess . . . .17.0 -0.4 76.9 14.2
COLT Group SA . . . . .87.4 -0.1 156.2 84.1
KCOM Group . . . . . . . .69.0 0.5 84.0 57.5
TaIkTaIk TeIecom . . .136.0 0.7 165.2 119.8
TeIecomPIus . . . . . . .720.0 14.0 802.0 433.0
Booker Group . . . . . . .75.6 0.3 80.0 54.5
Greggs . . . . . . . . . . . .515.0 -0.5 550.5 445.0
Morrison (Wm) Sup . .311.5 0.2 328.0 262.7
Ocado Group . . . . . . . .56.0 -2.1 285.0 52.9
Sainsbury (J) . . . . . . .300.0 1.2 391.5 263.5
Tesco . . . . . . . . . . . . .390.5 -0.5 429.7 356.3
Associated Britis . . .1116.0 -3.0 1150.0 940.0
Cranswick . . . . . . . . .739.0 -9.5 882.0 588.5
Dairy Crest Group . . .326.1 -0.2 410.4 318.8
Devro . . . . . . . . . . . . .254.2 3.2 296.9 223.5
Tate & LyIe . . . . . . . . .706.5 1.0 720.5 520.0
UniIever . . . . . . . . . .2135.0 12.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .463.3 -9.6 664.0 413.5
Centrica . . . . . . . . . . .286.1 -1.2 345.8 278.8
InternationaI Pow . . .342.3 3.8 436.6 279.4
NationaI Grid . . . . . . .624.0 14.5 649.5 530.0
Pennon Group . . . . . .717.0 -3.5 737.5 584.5
Severn Trent . . . . . .1528.0 -6.0 1600.0 1368.0
United UtiIities . . . . .612.0 -1.0 637.0 543.5
Cookson Group . . . . .537.0 1.0 724.5 395.8
DS Smith . . . . . . . . . .203.0 5.0 266.2 164.4
Rexam . . . . . . . . . . . .364.2 3.4 400.0 299.8
Price Chg High Low
Bovis Homes Group .429.8 21.8 499.6 326.5
Persimmon . . . . . . . .506.5 25.5 518.5 374.0
Reckitt Benckiser . .3307.0 34.0 3578.0 3015.0
Redrow . . . . . . . . . . . .122.3 5.3 136.2 103.5
TayIor Wimpey . . . . . . .38.1 0.7 43.3 28.7
Bodycote . . . . . . . . . .277.9 1.3 397.7 225.6
Charter Internati . . . .961.0 1.0 965.0 538.5
Fenner . . . . . . . . . . . .412.0 -3.5 422.5 280.0
IMI . . . . . . . . . . . . . . . .801.0 5.5 1119.0 636.5
MeIrose . . . . . . . . . . .348.4 -0.2 365.4 268.0
Northgate . . . . . . . . . .199.0 4.0 346.7 190.9
Rotork . . . . . . . . . . .1942.0 24.0 1979.0 1501.0
Spirax-Sarco Engi . .1890.0 14.0 2063.0 1649.0
Weir Group . . . . . . .2174.0 28.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .393.0 7.2 412.0 315.0
Ferrexpo . . . . . . . . . . .289.1 -6.8 499.0 238.7
TaIvivaara Mining . . .263.9 -3.1 622.0 195.2
BBAAviation . . . . . . .179.4 0.2 240.8 156.0
Stobart Group Ltd . . .120.0 0.5 163.6 112.0
AdmiraI Group . . . . . .825.5 -19.0 1754.0 787.0
AmIin . . . . . . . . . . . . .319.0 -2.3 427.0 270.6
Huntsworth . . . . . . . . .33.8 -0.1 85.0 33.0
Informa . . . . . . . . . . . .358.7 -1.8 461.1 313.9
ITE Group . . . . . . . . . .206.5 0.9 258.2 157.7
ITV . . . . . . . . . . . . . . . . .70.4 -1.0 93.5 51.7
Johnston Press . . . . . . .6.3 -0.1 12.8 4.1
MecomGroup . . . . . .208.0 1.8 310.0 134.5
Moneysupermarket. .106.2 2.3 120.4 76.3
Pearson . . . . . . . . . .1226.0 -3.0 1235.0 983.0
PerformGroup . . . . .210.8 0.8 234.5 150.0
Reed EIsevier . . . . . .508.5 -0.5 590.5 461.3
Rightmove . . . . . . . .1329.0 11.0 1408.0 770.0
STV Group . . . . . . . . . .76.3 0.0 168.0 74.1
Tarsus Group . . . . . .135.0 -1.8 165.0 119.5
Trinity Mirror . . . . . . . .49.0 -1.0 93.0 37.5
UBM . . . . . . . . . . . . . .471.2 1.2 725.0 416.0
UTV Media . . . . . . . . .103.0 1.5 150.0 92.5
WiImington Group . . .84.0 -0.5 183.0 82.0
WPP . . . . . . . . . . . . . .701.0 11.0 846.5 578.0
YeII Group . . . . . . . . . . .5.1 -0.1 14.5 3.4
African Barrick G . . .447.9 -2.4 616.5 393.5
AIIied GoId Minin . . .152.0 -5.8 281.3 34.4
AngIo American . . .2438.5 -30.5 3437.0 2138.5
AngIo Pacific Gro . . .268.4 -2.7 369.3 237.9
Antofagasta . . . . . . .1234.0 -36.0 1571.0 900.5
Aquarius PIatinum . .163.3 0.6 419.0 149.0
BeazIey . . . . . . . . . . . .133.0 -1.4 139.2 109.6
CatIin Group Ltd. . . .389.0 -2.2 421.4 334.0
Hiscox Ltd. . . . . . . . . .373.1 -0.7 424.7 340.5
Jardine LIoyd Tho . . .669.5 -3.5 764.5 576.0
Lancashire HoIdin . . .698.0 7.5 774.5 532.5
RSA Insurance Gro . .107.1 -0.9 143.5 99.6
Aviva . . . . . . . . . . . . . .299.0 -2.5 477.9 275.3
LegaI & GeneraI G . . .103.1 -1.1 123.8 89.8
OId MutuaI . . . . . . . . .137.2 -2.0 144.8 98.1
Phoenix Group HoI . .551.5 9.0 688.0 451.1
PrudentiaI . . . . . . . . .636.0 -1.5 777.0 509.0
ResoIution Ltd. . . . . .245.2 -5.1 316.1 229.5
St James's PIace . . . .333.9 4.4 376.0 272.5
Standard Life . . . . . . .198.9 -2.0 244.7 172.0
4Imprint Group . . . . .216.0 -2.4 295.0 200.0
Aegis Group . . . . . . .141.4 0.3 158.5 115.7
BIoomsbury PubIis . . .94.0 0.4 138.0 91.3
British Sky Broad . . .707.0 -4.5 850.0 618.5
Centaur Media . . . . . . .32.9 0.4 73.0 32.2
Chime Communicati .180.5 1.0 298.5 163.0
Creston . . . . . . . . . . . .65.5 0.0 121.0 64.0
DaiIy MaiI and Ge . . .393.7 -2.5 594.5 343.4
Euromoney Institu . .650.0 -1.5 736.0 522.5
Future . . . . . . . . . . . . . . .8.3 -0.5 30.0 8.3
Haynes PubIishing . .225.0 0.0 257.0 210.0
BHP BiIIiton . . . . . . .1947.5 -1.5 2631.5 1667.0
Bumi . . . . . . . . . . . . . .861.5 0.0 869.0 854.0
Centamin (DI) . . . . . . . .80.9 -1.0 173.1 78.5
Eurasian NaturaI . . .697.5 -7.0 1125.0 522.0
FresniIIo . . . . . . . . . .1638.0 -23.0 2150.0 1296.0
GemDiamonds Ltd. .189.9 3.2 306.0 179.8
GIencore Internat . . .398.7 3.4 531.1 348.0
HochschiId Mining . .412.3 0.4 680.0 365.9
Kazakhmys . . . . . . . .979.0 -16.0 1671.0 730.0
Kenmare Resources . .48.0 0.6 59.9 29.0
Lonmin . . . . . . . . . . . .976.5 -16.0 1896.0 941.0
New WorId Resourc .450.2 -5.7 1060.0 409.4
PetropavIovsk . . . . . .665.0 -6.0 1123.0 543.5
PoIymetaI Interna . .1118.0 -8.0 1130.0 877.0
RandgoId Resource 6900.0-100.0 7555.0 4425.0
Rio Tinto . . . . . . . . . .3311.0 -2.5 4712.0 2712.5
Vedanta Resources .978.0 -28.0 2518.0 928.0
Xstrata . . . . . . . . . . .1011.5 -4.5 1550.0 764.0
Inmarsat . . . . . . . . . . .420.7 -1.9 719.5 389.3
Vodafone Group . . . .177.1 -2.4 182.8 155.1
Genesis Emerging . .464.0 2.3 559.0 424.0
Afren . . . . . . . . . . . . . .104.7 -1.4 171.2 73.6
BG Group . . . . . . . . .1456.0 -1.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .473.6 -3.5 509.0 363.2
Cairn Energy . . . . . . .261.8 -2.1 469.7 257.8
EnQuest . . . . . . . . . . .106.8 2.8 158.5 85.7
Essar Energy . . . . . .162.0 -8.7 560.0 160.9
ExiIIon Energy . . . . . .277.9 2.7 469.7 184.2
Heritage OiI . . . . . . . .182.4 -11.1 467.9 160.0
Ophir Energy . . . . . . .313.0 -5.0 320.0 184.5
Premier OiI . . . . . . . . .395.9 3.5 535.0 310.0
RoyaI Dutch SheII . .2384.0 -1.0 2405.3 1883.5
RoyaI Dutch SheII . .2470.5 -8.0 2496.5 1890.5
SaIamander Energy .228.9 1.4 317.6 182.3
Soco Internationa . . .294.1 3.7 400.0 278.0
TuIIow OiI . . . . . . . . .1414.0 6.0 1493.0 945.5
Amec . . . . . . . . . . . . .961.5 -1.5 1251.0 740.5
Hunting . . . . . . . . . . .794.0 16.5 817.0 530.0
Kentz Corporation . .446.5 -3.5 508.0 346.0
LampreII . . . . . . . . . . .296.7 7.0 395.2 220.7
Petrofac Ltd. . . . . . .1539.0 -4.0 1685.0 1108.0
Wood Group (John) .675.5 5.0 715.8 469.9
Burberry Group . . . .1278.0 28.0 1600.0 1030.0
PZ Cussons . . . . . . . .329.5 -6.0 404.0 308.7
Supergroup . . . . . . . .549.0 0.5 1820.0 435.2
AstraZeneca . . . . . .3009.0 -33.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .326.0 -0.1 333.7 210.1
Genus . . . . . . . . . . . .1078.0 9.0 1111.0 840.5
GIaxoSmithKIine . . .1435.0 -62.0 1497.0 1127.5
Hikma Pharmaceuti .651.0 -6.5 900.0 555.5
Shire PIc . . . . . . . . . .2170.0 20.0 2243.0 1589.0
CapitaI & Countie . . .179.4 -3.3 203.7 142.8
Daejan HoIdings . . .2702.0 -71.0 2954.0 2282.0
F&C CommerciaI Pr .102.9 -0.1 108.0 92.6
Grainger . . . . . . . . . . .105.0 0.8 133.2 77.3
London & Stamford .107.8 0.7 140.0 103.9
SaviIIs . . . . . . . . . . . . .328.1 -7.9 427.1 256.2
UK CommerciaI Pro . .70.0 0.6 85.5 65.1
Unite Group . . . . . . . .169.8 5.8 224.1 152.9
Big YeIIow Group . . .255.4 0.1 344.4 218.0
British Land Co . . . . .455.3 -5.0 629.5 444.0
CapitaI Shopping . . .301.1 -5.4 408.6 288.7
Derwent London . . .1547.0 12.0 1880.0 1400.0
Great PortIand Es . . .329.7 4.1 445.0 312.9
Hammerson . . . . . . . .354.5 -2.2 490.9 345.2
Hansteen HoIdings . . .72.0 -0.6 89.5 68.0
Land Securities G . . .618.0 -3.5 885.0 612.0
SEGRO . . . . . . . . . . . .198.2 -1.9 331.3 195.0
Shaftesbury . . . . . . . .462.5 -0.4 539.0 436.4
Aveva Group . . . . . .1479.0 16.0 1799.0 1298.0
Computacenter . . . . .345.9 0.9 490.0 324.7
Fidessa Group . . . . .1614.0 2.0 2109.0 1444.0
Invensys . . . . . . . . . . .210.8 -2.3 364.3 180.9
Logica . . . . . . . . . . . . .67.0 -0.4 147.2 59.0
Micro Focus Inter . . .403.7 4.4 426.2 239.4
Misys . . . . . . . . . . . . .243.0 -4.0 420.2 214.9
Sage Group . . . . . . . .299.7 0.6 302.6 231.7
SDL . . . . . . . . . . . . . . .649.0 -1.0 711.5 586.0
TeIecity Group . . . . . .656.5 26.0 657.0 430.0
Aggreko . . . . . . . . . .2131.0 42.0 2140.0 1394.5
Ashtead Group . . . . .225.0 4.3 230.2 99.4
Atkins (WS) . . . . . . . .648.0 -5.0 820.0 490.2
Babcock Internati . . .738.5 4.5 743.5 542.0
Berendsen . . . . . . . . .441.6 8.1 568.0 402.7
BunzI . . . . . . . . . . . . .892.0 4.5 897.0 676.5
Cape . . . . . . . . . . . . . .335.6 0.5 591.5 295.0
Capita . . . . . . . . . . . . .641.5 1.5 786.5 611.5
CariIIion . . . . . . . . . . .301.9 -0.5 403.2 281.0
De La Rue . . . . . . . . .905.0 10.5 936.0 667.0
DipIoma . . . . . . . . . . .359.7 -0.3 414.3 263.5
EIectrocomponents .205.5 1.4 294.9 182.2
Experian . . . . . . . . . . .864.5 11.5 880.0 665.0
FiItrona PLC . . . . . . . .399.5 3.0 401.1 250.0
G4S . . . . . . . . . . . . . . .272.4 -0.3 291.0 219.9
Hays . . . . . . . . . . . . . . .65.4 0.5 132.4 58.9
Homeserve . . . . . . . .300.0 1.0 532.0 218.5
Howden Joinery Gr . .105.4 3.0 127.5 93.1
Interserve . . . . . . . . . .317.0 -0.9 341.3 233.5
Intertek Group . . . . .2088.0 26.0 2148.0 1715.0
MichaeI Page Inte . . .346.2 1.0 567.0 323.0
Mitie Group . . . . . . . .270.9 1.9 271.4 195.9
Premier FarneII . . . . .190.0 -4.1 308.8 144.5
Regus . . . . . . . . . . . . . .85.0 -1.2 119.0 64.0
RentokiI InitiaI . . . . . . .66.0 1.4 104.9 58.2
RPS Group . . . . . . . . .187.3 1.4 253.0 156.6
Serco Group . . . . . . .500.0 8.7 618.5 458.0
Shanks Group . . . . . . .97.0 -0.1 130.9 90.8
SIG . . . . . . . . . . . . . . . .86.4 -0.3 153.5 77.0
Travis Perkins . . . . . .802.0 4.0 1127.0 715.0
WoIseIey . . . . . . . . .2080.0 -39.0 2261.0 1404.0
ARM HoIdings . . . . . .613.0 3.5 651.0 459.6
CSR . . . . . . . . . . . . . .190.1 -0.8 447.0 154.1
Imagination Techn . .574.0 6.0 576.5 296.9
Spirent Communica .115.9 0.7 160.0 105.8
British American . .3010.0 -28.0 3079.0 2282.5
ImperiaI Tobacco . .2405.0 -6.0 2444.0 1784.0
Betfair Group . . . . . . .810.0 0.0 1054.0 567.0
Bwin.party Digita . . .168.0 -4.3 214.7 100.6
CarnivaI . . . . . . . . . .2153.0 -13.0 3147.0 1742.0
Compass Group . . . .605.0 0.0 616.0 512.5
Domino's Pizza UK . .439.8 2.8 578.0 377.0
easyJet . . . . . . . . . . . .403.3 8.1 474.0 301.0
FirstGroup . . . . . . . . .333.2 -6.3 406.3 301.8
Go-Ahead Group . . .1355.0 -27.0 1598.0 1190.0
Greene King . . . . . . .482.4 -2.0 518.0 410.0
InterContinentaI . . .1195.0 21.0 1435.0 955.0
InternationaI Con . . .144.2 -2.3 305.0 132.0
JD Wetherspoon . . . .421.4 0.0 468.3 380.5
Ladbrokes . . . . . . . . .131.5 0.2 155.3 114.0
Marston's . . . . . . . . . . .90.6 -0.3 112.0 84.6
MiIIennium& Copt . .393.0 -0.5 600.5 371.2
MitcheIIs & ButIe . . . .245.0 -4.8 357.1 215.6
NationaI Express . . .221.0 -1.2 270.2 201.6
Rank Group . . . . . . . .130.0 -1.7 153.7 109.5
Restaurant Group . . .286.3 3.3 335.0 254.9
Stagecoach Group . .267.6 0.1 272.4 200.0
TUI TraveI . . . . . . . . . .157.8 -2.6 271.9 136.7
Whitbread . . . . . . . .1597.0 8.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .204.2 0.4 244.1 168.6
Abcam . . . . . . . . . . . .377.0 7.3 460.0 310.0
Advanced MedicaI . . .93.0 0.5 96.0 64.8
AIbemarIe & Bond . .334.5 0.5 400.1 272.0
Amerisur Resource . .17.5 0.8 29.0 9.5
Andor TechnoIogy . .595.0 5.0 685.0 387.1
ArchipeIago Resou . . .68.0 0.8 79.0 55.5
ASOS . . . . . . . . . . . .1422.0 18.0 2468.0 1142.0
AureIian OiI & Ga . . . .17.5 0.5 92.0 16.0
Avanti Communicat .293.0 -7.0 646.0 248.5
BIinkx . . . . . . . . . . . . . .67.5 -1.3 158.0 50.5
Borders & Souther . . .70.0 2.0 72.3 43.5
BowLeven . . . . . . . . . .71.8 -3.3 398.0 62.0
Brooks MacdonaId .1158.0 16.5 1372.5 940.0
Cove Energy . . . . . . .125.0 0.5 129.8 61.0
Daisy Group . . . . . . . .95.0 -5.0 127.0 88.0
EMIS Group . . . . . . . .490.0 -7.5 580.0 416.0
Encore OiI . . . . . . . . . .81.3 0.5 151.5 40.8
Faroe PetroIeum . . . .161.8 1.8 218.3 130.0
GuIfsands PetroIe . . .185.0 -1.0 375.0 142.5
GWPharmaceuticaI . .84.0 2.0 130.0 78.5
H&T Group . . . . . . . . .320.0 0.0 395.0 277.0
Hamworthy . . . . . . . .824.5 -1.5 833.5 406.3
Hargreaves Servic .1122.0 29.0 1180.0 814.5
HeaIthcare Locums . . . .3.4 0.0 3.7 3.0
Immunodiagnostic . .423.0 -7.0 1218.0 410.4
ImpeIIamGroup . . . .265.0 0.0 387.5 181.5
James HaIstead . . . . .457.5 14.0 495.0 372.5
KaIahari MineraIs . . .242.0 0.0 301.0 198.3
London Mining . . . . .297.8 -3.8 436.5 278.5
Lupus CapitaI . . . . . .114.5 -0.5 150.0 86.0
M. P. Evans Group . .444.0 9.0 492.0 371.0
Majestic Wine . . . . . .349.0 7.8 510.0 315.0
May Gurney Integr . .280.0 1.0 302.0 234.0
Monitise . . . . . . . . . . . .27.5 -0.3 40.0 18.5
MuIberry Group . . . .1481.0 -19.0 1920.0 1025.0
Nanoco Group . . . . . . .52.0 -2.0 100.0 38.0
NauticaI PetroIeu . . .258.5 2.5 547.0 223.5
NichoIs . . . . . . . . . . . .575.0 -16.5 591.5 410.0
Numis Corporation . . .77.0 0.0 127.0 72.0
Pan African Resou . . .15.3 0.3 17.0 9.5
Patagonia GoId . . . . . .45.5 -1.8 70.0 37.3
Prezzo . . . . . . . . . . . . .65.0 3.3 71.5 53.5
Pursuit Dynamics . . . .83.0 -0.6 471.0 67.0
Rockhopper ExpIor .286.0 -5.5 386.0 141.0
RWS HoIdings . . . . . .446.0 -4.0 481.6 328.0
Songbird Estates . . .112.0 -1.8 160.3 104.0
VaIiant PetroIeum . . .438.0 8.0 672.0 400.0
Young & Co's Brew . .660.0 0.0 712.0 565.0
JD Sports Fashion . .700.0 6.1
Carpetright . . . . . . . .543.0 5.9
Bovis Homes Group .429.8 5.3
Persimmon . . . . . . . .506.5 5.3
Redrow . . . . . . . . . . . .122.3 4.5
Senior . . . . . . . . . . . . .185.0 4.4
TeIecity Group . . . . . .656.5 4.1
Unite Group . . . . . . . .169.8 3.5
Howden Joinery Gro .105.4 2.9
GaIIiford Try . . . . . . . .478.0 2.9
Home RetaiI Group . . .86.7 -6.0
Heritage OiI . . . . . . . .182.4 -5.7
Essar Energy . . . . . .162.0 -5.1
Man Group . . . . . . . . .107.3 -4.8
BarcIays . . . . . . . . . . .178.1 -4.5
GIaxoSmithKIine . . .1435.0 -4.1
Jupiter Fund Manag .188.5 -3.8
AIIied GoId Mining . .152.0 -3.7
Ocado Group . . . . . . . .56.0 -3.5
LIoyds Banking Gro . .26.2 -3.4
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.69 -0.04 104.8 100.7
Tsy 5.250 12 . . . .101.97 -0.02 106.1 101.9
Tsy 9.000 12 . . . .104.89 0.00 112.4 104.0
Tsy 4.500 13 . . . .104.71 -0.02 107.0 104.7
Tsy 2.500 13 . . . .283.51 0.00 287.7 279.0
Tsy 8.000 13 . . . . .112.93 0.00 118.0 112.8
Tsy 5.000 14 . . . . .112.08 0.04 112.9 109.2
Tsy 4.750 15 . . . . .114.99 0.09 115.4 108.6
Tsy 8.000 15 . . . .128.29 0.09 129.2 123.7
Tsy 7.750 15 . . . .100.10 -0.23 107.1 99.8
Tsy 4.000 16 . . . . .114.25 0.11 114.7 104.9
Tsy 2.500 16 . . . .344.23 0.13 344.4 312.1
Tsy 8.750 17 . . . .141.40 -0.10 141.9 132.9
Tsy 1.250 17 . . . . .116.61 0.22 116.8 106.7
Tsy 12.000 17 . . .121.75 -0.19 130.2 121.8
Tsy 5.000 18 . . . .122.20 0.24 122.4 109.7
Tsy 4.500 19 . . . .120.54 0.23 120.6 105.4
Tsy 3.750 19 . . . . .115.42 0.24 115.5 99.4
Tsy 2.500 20 . . . . .367.11 0.20 367.2 314.0
Tsy 4.750 20 . . . .123.18 0.22 123.5 106.6
Tsy 8.000 21 . . . .152.74 0.17 153.4 133.8
Tsy 4.000 22 . . . . .117.62 0.17 118.2 99.0
Tsy 1.875 22 . . . .129.05 0.07 131.0 111.3
Tsy 2.500 24 . . . .334.72 0.16 335.2 275.6
Tsy 5.000 25 . . . .129.96 0.20 130.6 107.4
Tsy 4.250 27 . . . . .122.11 0.25 122.6 97.9
Tsy 1.250 27 . . . .127.01 0.12 127.4 104.8
Tsy 6.000 28 . . . .147.16 0.25 147.8 119.5
Tsy 4.750 30 . . . .129.53 0.24 130.0 103.0
Tsy 4.125 30 . . . .322.57 0.05 322.6 262.1
Tsy 4.250 32 . . . .122.06 0.23 122.5 96.0
Tsy 4.250 36 . . . .122.53 0.21 123.2 95.0
Tsy 4.750 38 . . . .132.62 0.22 133.4 102.8
Tsy 4.500 42 . . . .128.83 0.21 129.6 98.9
% %
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EALE
Wealth Management | Contracts for Difference
T
HE retail festive sales reports are
in full swing but today sees not
just an ordinary update this is a
Marks and Spencer update.
Expectations are for good food sales and
based on a strong performance from fel-
low high street staple Next last week,
the clothing side is expected to be none
too shabby either. But as usual it will be
the tone of the outlook that potentially
has the bigger bearing on sentiment and
this week has already seen a little cau-
tion creeping into the share price. IG
Markets CFD price is 308.3p-308.7p.
Alcoa reported earnings after the
bell yesterday to kick off the earnings
season, with its shares having fallen 50
per cent from their highs in 2011. After
breaking through a trendline drawn
from the April highs and the 30-day
moving average, the shares were trying
to recover from the dip to as low as
$8.50 at the end of 2011. Good results
may well see the shares break above
$9.50-$10.00, disappointing results
may offer another buying opportunity
around $8.50. Spread Co offers a
spread on Alcoa of $9.35-$9.38.
Its all about retailers this week as
supermarkets and many high street
bellwethers report their numbers and
investors will want to see how the
Christmas trading period was for them.
One such retailer that has struggled is
Mothercare whose share price
slumped some 60 per cent in 2011.
Will 2012 prove a turning point for it or
more of the same troubles as con-
sumers keep their money in their pock-
et? Capital CFDs quotes 156.0-157.2
for Mothercare.
Oil majors continue to garner
traders interest as the price of crude
tests upside resistance. There are ele-
vated geopolitical tensions on worsen-
ing relations between Iran and the
West, following the EUs decision to
implement a ban on Iranian crude
imports. Countering this are the ongo-
ing concerns over the global economy
as many European countries struggle
with austerity measures, and on contin-
ued uncertainty over the outlook for
China. While European refiners strug-
gle, producers such as BP, Royal Dutch
Shell and Exxon Mobil continue to
power ahead. GFT quote for Royal
Dutch Shell B shares is 2,483-2,484p
Craig Drake
THE TIPSTER AN EXTRA
SPECIAL M&S
UPDATE TO
START THE
EARNINGS
SEASON
A slippery
time ahead
for oil prices
Though Iranian worries have caused
price rises, they may be offset by an
EU slowdown, writes Craig Drake
C
ONTINUED geopolitical
issues in Iran and its stand-
off in the Strait of Hormuz
has pushed up oil prices over
fears of a threat to supply, but will
global economic weakness be
enough to take the edge off these
rises in the long term?
SHORT TERM FEARS
Crude traders were of course
spooked by the escalating situa-
tion in the Strait of Hormuz and
Iran, with WTI Crude leaping $4.50
in the first few trading sessions of
2012, says Ian OSullivan, head of
marketing of SpreadCo. Since this
earlier jumpiness, tensions have
eased somewhat, with crude work-
ing its way back to the $101 sup-
port level. According to OSullivan,
although some are saying that,
should the Strait of Hormuz close,
crude could hit $200, we are likely
to see crude trade sideways around
$100 for now.
EUROPEAN DEMAND DENTED
Though the Iranian issues have the
potential to drive up crude prices,
yesterday provided an indicator
that European economic fears
could trump worries over Iranian
supply restrictions.
Chancellor Angela Merkel and
President Nicolas Sarkozy met yes-
terday for yet another round of
talks about how to deal with a
problem like Greece, but rolled out
their usual caveated statements
about wanting to be proactive and
effective in dealing with the crisis,
just not yet. Merkel maintained
her stance that a second bailout
for Greece wont come until there
is an agreement on private bond-
holder haircuts. Should a decision
not be arrived at on this issue,
Greece would be at serious risk of
default.
DOLLAR DENOMINATED WORRIES
European demand is also at the
mercy of the euros fortunes
against the dollar. With euro-dol-
lar sliding to the $1.2700 area, dol-
lar-denominated crude is getting
even more expensive for European
consumers. The combination of
the Iranian risk premium and the
FX costs are set to cause real dam-
age to European oil demand
throughout the next quarter.
CONTINUE WHERE WE LEFT OFF
Though the Iranian problems and
the European debt crisis both have
the potential to cause big move-
ments in crude prices, according
to Mike Franklin, head of invest-
ment strategy at Beaufort Equity,
these are almost certainly not the
only areas of potential risk. As well
as the potential for social and eco-
nomic disruption caused by natu-
ral disasters, Franklin cites the
continued Democrat-Republican
standoffs in the US and the wor-
ries over Chinese growth as areas
of concern: Against this back-
ground, investors can be expected
to contiunue with caution as this
year unfolds, says Franklin.
Consequently, the short-term
trading mentality and accompa-
nying volatility that charac-
terised 2011 looks likely to
continue into 2012.
Not a time for crude jokes Picture: REUTERS
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Looking to buy euro-dollar
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Remain short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I entered short at $1.3526 on 9 November expecting the Eurozone
debt crisis to continue to spread and moved my stop to $1.3231 last
week after the pair met my secondary objective at $1.2872, aiming for
the next target at $1.2586. Positioning now appears oversold and a
corrective bounce is likely, particularly considering the likely onslaught
of jawboning from officials heading into the 30 January EU summit. I
will treat any recovery as an opportunity to add to the short position.
This market is trading near 20 year lows and finally broke to fresh record
lows below $1.2500. Short, medium and long-term studies are all looking
stretched and I will look for an opportunity to buy in anticipation of a major
correction and eventual bullish trend reversal. Only a weekly close below
$1.2300 would ultimately give reason for concern, while back above $1.3000
confirms and should accelerate gains. Buy entry has been placed on a daily
close back above $1.2650, with stops on a weekly close below $1.2300.
QUANTITATIVE STRATEGIST
DAVID RODRIGUEZ
My pick: Sell euro rallies into $1.3000
Expertise: System trading
Average time frame of trades: 2 to 10 weeks
Market sentiment is incredibly one-sided, as non-commercial futures
traders are their most net-short euro-dollar on record. Yet the trend
is down until it isnt, and I like selling euro strength as long as we
dont see a daily close above $1.3000. Plausible short entry levels
include $1.2800 and beyond that $1.2950. I will bail on any short
positions on a daily close above $1.3000 and target key 2010 lows
of $1.2590.
Strait of Hormuz
Gulf of Oman
Iran
UAE
Oman
A
FTER the well-flagged decision this
afternoon to press ahead with the first
stage of the High Speed 2 rail project
(HS2), the City and business will be
pressed to contribute to the strong business
case. An aspect that MPs are singularly ill-
equipped to consider, but that the City will
focus on, is the way the case has been fiddled
by selective manipulations buried in the detail
of the Department for Transports (DfT) spread-
sheets.
What is likely to be approved is a scheme
designed to boost capacity for Northampton-
based commuters (who need new trains now)
by building a new, high-speed line to
Birmingham opening in maybe 2026-27, most-
ly on the promise of the benefit to people who
will be travelling to work after 2050. That will
make three fast rail routes to Birmingham: the
West Coast main line, the Chiltern line and
HS2. All are fast, Chiltern just had an upgrade,
and could be faster still with decent signals.
The basis for this is an 80-year GDP forecast
from DfT a forecasting paragon. Further, the
discount rates used have no provision for error
in this forecast. It is 100 per cent correct. Please
be reassured, there are no recessions due
before 2093.
The rosy DfT outlook means that the average
business rail user by 2092 will see their real
incomes rise 4.26-fold in 2009 money there is
no inflation. While their ancestors struggled
on about 65,000 in 2009, the 2092 crowd will
be on salaries of at least 240,000, maybe more
as the overall cost of employing them is esti-
mated by DfT to be 370,000. By travelling on
HS2, these highly-paid executives (about 72,000
per day of them) save time and generate extra
profits for their employers. Minor things like
radical changes in the UK demographics after
2050, the rise of China and Asia and technolog-
ical changes are irrelevant. Even pensioners
will be 3.2-fold better off by 2092.
This is a neat trick and all done on a couple
of lines in a spreadsheet that MPs will never
look at. It means that 88 per cent of benefits
arrive after 2043.
The largesse is not even, though. Most staff
who will work on HS2 remain on 2009 wage
levels. And construction costs, which are 45bn
in cash terms at 2009 prices, are not affected by
GDP growth either. So construction workers
lose out. Fares do not inflate by GDP, though
real price rises are assumed till 2043, so fares
will eventually fall relative to income if the
DfT is right.
Why the 2043 cut off? well, there are not
enough passengers until then. To make it work
financially, HS2 also needs 30 per cent growth
in rail passengers over the DfT optimistic case.
If the sophisticated demand model is not
arbitrarily ended at a convenient level in 2043,
it predicts that very quickly wed all be travel-
ling daily on HS2, all 60m of us. And it only
goes to five places apart from London.
What does this do for the economics of the
project? Well, it is in two stages: first to
Birmingham and then two arms of the eventu-
al Y route: to Manchester on the west arm
and to near Nottingham, outside Sheffield and
rammed into Leeds on the east. Less a network
and more a corridor. If anything breaks down,
like the elaborate computer-controlled signals
(not yet designed) it will cause chaos.
The whole thing will cost 45bn in 2009 cash
to build. So far, no one north of Birmingham
has seen any details but the costs of the north-
ern extensions are small relative to this first
section oddly cheap, as there are things
called hills in the North.
We all have to make forecasts but one can
accommodate uncertainty to some extent by
using a present value with a discount rate to
reflect inherent risks and uncertainties. The
Treasury dictates a rate of 3.5 per cent falling
by 2092 to 2.5 per cent. This is not a financial
present value as there is no financing cost and
no debt calculation involved; its all free, tax,
money. By increasing real GDP after 2043, the
benefits are exaggerated and costs diminished
when assessing the benefit ratio. Far from this
ratio being over 2 as needed, it falls to under
0.9 if 2009 GDP levels are used. In other words,
the UK is still not rich enough to get any bene-
fits from HS2 and will lose 10p for every pound
spent.
The government hopes that HS2 will bridge
the North-South divide after 2033, when the
extensions finally reach Leeds and Manchester
but spending 45bn cash upfront to get few
benefits before 2043 seems odd. And there is
no evidence it will make any difference. In the
meantime, Northamptons commuters can
stand. At least, according the DfT, they are get-
ting steadily richer. What has always been puz-
zling is why such a badly-thought-out plan is so
eagerly adopted by David Cameron. We will see
what the latest excuse is at 3pm today, when
the latest secretary of state to be duped by the
rail lobby stands up in Parliament.
Dr John Savin is an investment analyst and lives in
Wendover, an affected village in the Chilterns Area of
Outstanding Natural Beauty.
24
The Forum
88 per cent of benefits of
the High Speed Rail 2
project arrive after 2043
No recessions for 80 years:
The fanciful world of High
Speed Rail 2s business case
cityam.com/forum
JOHN SAVIN
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
A reduced role
means politicians
now have far too
much spare time
MPs say we need
less drink they
must be wasted
B
RITAINS middle classes have long been
obsessed with what the other, poorer,
half eats and drinks. Yesterday, MPs on
the science committee called on the gov-
ernment to issue new guidance on alcohol
consumption, recommending that people
have at least two alcohol-free days a week. Its a
bit rich for politicians, who are often found
worse-for-wear in one of the five House of
Commons bars, to lecture the rest of us on
booze but this advice is not intended for
those who enjoy a glass of claret with their
weeknight supper. Like plans for a minimum
alcohol price, it is all about the improvement
of lesser or less well-off mortals.
The fixation is nothing new. In his 1937
account of life in the northern working-class
heartlands, The Road to Wigan Pier, George
Orwell claimed we may find out in the long
run that tinned food is a deadlier weapon than
the machine gun. He believed that processed
foods like tinned peas and white sliced bread
were to blame for the deterioration in Britains
physical stock. Orwell took his lead from the
Victorians, who were fixated with what poorer
people ate and drank, and the effect it might
have on the way they led their lives.
The idea that one could improve the physi-
cal and moral standards of an entire popula-
tion by controlling its diet used to bounce
around with early theories of eugenics. A
clutch of writers such as WB Yeats were big pro-
ponents of such thinking. While the Nazi
eugenics programme sounded the death-knell
for that sick science, the fascination with food
and drink persists.
Only in recent times have politicians taken
up the mantle with such vigour, previously
preferring to leave campaigns to charities such
as the Rowntree foundation. For most of the
twentieth century, MPs were too busy rebuild-
ing the country, or running things such as the
railways or coal mines to take any notice.
After Margaret Thatcher privatised huge
swathes of national industry, there was much
less for government to do. That was fine for a
Tory administration that believed in a smaller
state, but it posed a big problem for New
Labour, which was still at heart an interven-
tionist party. They were too scared to roll back
Thatchers economic reforms, so they busied
themselves with other things instead. Tony
Blair satisfied his interventionist inklings by
engaging the UK in a series of foreign conflicts;
domestic politicians turned their attention to
public health.
During the 1997 to 2010 Labour years, more
than 350m was spent telling the public to
drink less, eat well, exercise more and to prac-
tise safe sex. Spending on the poster, television
and cinema campaigns rose 30-fold during the
partys time in power. The coalition has cut
back on such advertising, but it is still passion-
ate about the issues. David Cameron is at his
most animated when speaking out on sexually
suggestive pop music videos, or the impact of
food adverts on children.
This government, like the last, really thinks
it can build a better Britain by going into poor-
er peoples kitchens and telling them what to
eat and drink. Levels of obesity and binge
drinking which soared over the last twenty
years or so, during which nannying was rife
suggest it is misguided.
David Crow is City A.M.s managing editor and
head of news.
Crippled by costs
Im glad to see that Ernst and
Young has now revealed the
true cost that an EU financial
transaction tax (FTT) would
impose on the whole of the
European Union and, in particu-
lar, the City of London [Tobin
Tax could cost EU billions,
Monday].
David Cameron would certainly
be right to veto the FTT if
Germany really does try to
impose this costly levy on the
whole of the EU. However,
given the financial realities, I
doubt that Chancellor Angela
Merkel will even be able to per-
suade all her Eurozone partners
to sign up to the proposed tax;
it would have a similar crippling
effect on the financial services
industries in Malta and
Luxembourg as it would here in
the UK.
Marina Yannakoudakis,
Conservative member
of the European Parliament
for London
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
DAVID CROW
BY ANTHONY J. EVANS
The Forum
D
EBATES about
tax can be pretty
taxing as two
recent examples
of both sides of the
debate embellishing the
facts to create outrage
out of nothing clearly
show.
In a recent report, Action Aid found that 98 per
cent of FTSE 100 companies had subsidiaries that
operated within a tax haven. There are problems
with how they define tax havens, and Christie
Malrys FCA blog has already taken them to task for
this. They use a conventional definition from the US
Congresss Government Accountability Office and
then supplement it with a mixture of states and
countries that they arbitrarily define as tax havens.
Since this list includes parts of the US and EU it
should be taken with a large pinch of salt. However,
when a TV news channel reported this, it implied
that owning a subsidiary within a particular country
is the same thing as the entire company being based
there, claiming that 98 out of the 100 companies on
the FTSE 100 base their operations in territories
where there is low or no tax. This would be like say-
ing that Coca Cola, McDonalds and Ford are based
in the UK purely because they have operations here.
Once this started circulating, some people mistook
low or no tax with simply no tax, feigning outrage
that 98 per cent of the UKs 100 largest companies
do not pay tax at all. But all companies pay tax.
In the US there is a similar story. The Tax Policy
Center found that 47 per cent of Americans do not
pay federal income tax (according to Derek
Thompson at The Atlantic, over half of those people
earn less than $20,000 per year). This has led to a
Conservative counter-movement to Occupy Wall
Street, referring to itself as the 53 per cent, but
this figure has also been misused. Fox & Friends co-
host Brian Kilmeade presented the movement as
representing the 53 per cent that actually pay our
taxes, ignoring the payroll, state, sales and myriad
other forms of taxation that affect everybody. All
people pay tax.
Both sides can take these criticisms too far. Just
because the claim that 98 per cent of the FTSE 100
dont pay tax is factually wrong, doesnt excuse tax
evasion (although it is also important to realise that
just because companies sign the cheques does not
mean that they bear the incidence ultimately only
people pay taxes). Policy should focus on making sure
that SMEs do not face regulatory burdens that only
large companies are able to work around, and reduc-
ing the complexity that makes tax dodging possible.
Similarly, those on the left often ignore the caveat
about who pays federal income taxes when it does
get made, and neglect the important fact that tax
burdens on working people are getting higher.
The internet facilitates these sorts of memes, and
polemicists on both sides find value in exploiting
them. But it usually pays to look beyond headlines
and commentary to track down the studies them-
selves. It is wrong to believe that rich companies can
simply employ legal experts and avoid paying taxes,
and its wrong to think that those who are out of
work do not suffer from high tax burdens. We can-
not make easy distinctions between taxpaying and
non-taxpaying companies, or indeed between tax
paying or non-taxpaying individuals. We are all tax-
payers.
Anthony J. Evans is associate professor of
economics at Londons ESCP Europe Business
School. www.anthonyjevans.com
Were the 100 per cent
because we all pay tax
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Top classes
to get you
into shape
S
o the funs over and now its time to tackle
Januarys inevitable mincepie-top. Best
place to start is often the studio, instead of
the gym floor; trying to go it alone on the
treadmill can be tough after weeks of gluttony
and inactivity. These are my picks of the citys
finest fitness classes for 2012.
Sexy in the City Bootcamps: This is the boot-
camp with a difference. Its a women-only boot-
camp that guarantees great results in
30-minute sessions through warrior-style rou-
tines perfect if youre looking to lose fat;
research has found that women who resistance-
train two or three times a week lose, on average,
3.5 pounds of fat over eight weeks. And best of
all for a cold January? The classes are indoors.
www.sexyinthecitybootcamps.com
Stars Gyms Conditioning Empower Class:
Grrr, this is one for the boys. A tough, military-
style class with a big emphasis on energetic
intervals, this should be one for your resolution
list. And, as a recent Canadian study found,
short, high-intensity intervals make for superior
workouts than slower, longer plods. This makes
it the perfect class for a time-poor executive.
www.starsgym.co.uk
Drag Queen Dance Class: Fancy replacing the
Lycra with backcombed hair and false eyelash-
es? Then join famous drag troupe, The Globe
Girls, at Floridita in Wardour St for their Drag
Queen Dance Class. With heels being the regula-
tion footwear, youll get to try the sassy strut-
ting in heels warm-up followed by a
high-octane dance workout. A 90-minute class
and a cocktail will cost you 25.
www.floriditalondon.com
PowerHit: Described as the ultimate quick
fix (we like this already) this is a popular tradi-
tional Power Plate class combined with spin-
ning-style cardio intervals on Power Plates
all-new Power BIKE - and its only 25 minutes.
Try it at the Harrods Power Plate Studio from
today.
www.powerplate.com
Visit www.laurawilliamsonline.co.uk or follow
me on twitter @laurafitness
Steve Dinneen tries out the VIP gym treatment from Mark Anthony
Mark Anthony has
worked with stars
including Katie Price
and Billie Piper
The get fit quick scheme
weights, the machine work is excruciating.
If I didnt have someone telling me to carry
on, I would have packed up and left after
the warm-up.
DAY THREE: DAY OFF
Blackberry yoatie for breakfast, cashew
nuts as a snack, carrot and lentil soup for
lunch, a muffin in the afternoon and
steamed fish for dinner. Everything hurts.
DAY FOUR: HAMSTRINGS AND ABS
The day off has given my body some time to
recover. I wake up in plenty of time for the
cab. The warm-up isnt so bad, especially
after a few days without drinking. However,
after a second day of leg exercises, Im sure
I can actually hear my thighs crying. The 20
minute hike, though, is easier, even on a
steeper incline. The nausea has gone.
DAY FIVE: BACK AND ABS
Getting up is easy. I feel energetic and
chat to the driver for the first time. The
warm-up doesnt tire me out, although
my arms are still painful from Tuesday.
The back exercises, one of which uses a
machine that looks like Hal from 2001: A
Space Odyssey and probably costs as
much, are tough and by the end my mus-
cles are burning again but the daily climb
is actually quite fun. I leave feeling elat-
ed for the first time in my life I under-
stand the attraction of going to the gym.
Im absolutely ravenous and the food
(salmon and scrambled eggs, cherry muf-
fin, risotto, turkey roll and stuffed pep-
pers) barely satisfy my hunger.
* * *
After a week I was exhausted and in pain but
completely sold on this way of getting fit.
While five days isnt enough to notice much of
a physical change, I was amazed by how quick-
ly my body adapted to the routine. Six weeks
of the VIP Body System would have a big
impact, especially if weight loss is your goal.
The VIP Body System Package is 750 a week. Go to
markanthonysuk.com for more information, call
0207 221 8625 or visit the gym at 57 Ossington Street
London, W2 4LY
P
eople rarely have a clean break with
their good intentions. They disappear
gradually, a death by 1000 cuts. Im
too tired to make lunch for work
tomorrow. Its too cold to walk to the
gym. I dont have time for a run today.
Self-styled body genius and personal train-
er to the stars (well, Katie Price and Billie
Piper), Mark Anthony thinks he has a solu-
tion. The VIP Body System is a six week
regime that includes a chauffeur-driven car
to pick you up and drop you off (I went from
home to gym to office), an hour-long work-
out and delivery of all of your meals directly
to your home or office (breakfast, two
snacks, lunch and dinner) I tried it out: here
is how it went.
DAY ONE: LEGS AND ABS
I wake up at 7.30am to the sound of my driv-
er calling to let me know hes waiting out-
side. I almost fall over the gigantic box of
food sitting on the doorstep (the days food
consists of honey granola, smoothie, chick-
en and quinola salad, flapjacks and Keralan
prawn curry). I drag it into the taxi and
promptly fall asleep for the entire journey
to the West End studio. We start with an
uphill walk to warm up before embarking
on a punishing leg routine. Half way
through my third rep of bar-lifting squat
thrusts my thighs feel like they are on fire,
lactic acid searing every muscle. The ab
exercises again, split into three reps of 15
or 25 are worse. My trainer misses a few
numbers as he counts down, which we both
pretend not to notice. I get through three
leg and three ab routines before I waddle to
the treadmill for a 20 minute uphill hike. I
feel nauseous, drenched in sweat, surprised
by quite how unprepared my body was for
this. My driver takes me back to the
office, where I can barely walk. The
food, though, is delicious its clearly
low fat but isnt insipid, as Id expect-
ed.
DAY TWO: ARMS AND ABS
Roast pepper and sweet potato frittata
for breakfast (later: fruit, turkey noo-
dles, Szechuan chicken bites and beef
stew). The treadmill warm-up is a
killer after the leg exercises yester-
day. The arm routines are even
tougher than the leg ones yester-
day free-weight bicep curls almost
finish me off. Even on the light
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For those who overindulged... picture: REX
A credit crunch movie
that doesnt hate bankers
Lifestyle
I
F you had to guess where J.C.
Chandors sympathies lie, youd proba-
bly go with anti-banker. Had I met
him without having watched a pre-
release DVD of Margin Call, his art-house
credit crunch thriller, Id take one look
at his skinny jeans, luxuriant black hair
and air of New York cool and think: no
way is this guy a friend of
Wall Street.
Appearances, of course, can deceive, and
it turns out that hip as he looks when we
meet in the penthouse of the May Fair
hotel, Chandor is far too clever for banker
bashing. Margin Call, which stars Kevin
Spacey, Jeremy Irons, Stanley Tucci and
Demi Moore (not a bad cast for a first-time
feature film maker) focuses on 36 hours in
an unspecified investment bank just before
the proverbial hits the fan in 2008. Filmed
in just three weeks in an old Manhattan
hedge fund office, the film is a tight, claus-
trophobic examination of humans in trou-
ble. Chandor wanted to show that the
bankers involved in the sale of trillions of
dollars of mortgage securities are indeed
people with hearts ands souls never more
vulnerable than when they realise its all
gone horribly wrong.
Predictably, not everyone is happy with
that standpoint. I get criticism from both
the left and right, he says. The left are par-
ticularly angry that the movie isnt critical
enough, that I havent hung them out to
dry. But I had no interest in doing that.
So does he sympathise with his charac-
ters, which include Jeremy Irons Dick
Fulds-esque CEO, Paul Bettanys strip club-
frequenting chief trader and Kevin Spaceys
head honcho? I dont have sympathy, says
Chandor. The choices they made are the
choices they made. But Im empathetic. A
huge amount of coverage has been given
over to caricature a black and white por-
trayal, where the bankers are all bad guys.
There is certainly a scapegoat element in
the US. Hopefully what the film does is
show these people in a more complex
light.
One reason Chandor is so refresh-
ingly free of that simplistic fury evi-
dent in, say, the Occupy Wall Street
and St Pauls protesters is that his
father worked for Merrill Lynch for 35
years. My personal experience with
people in that industry is: do they get
paid a lot more than most of
us? Absolutely. But if you
took a thousand people
from that world, on aver-
age, most of them are
unbelievably hard
working and really,
really smart. These
are people who
work harder than
I do. Since they
were 22 scratch
that, 15 years old
they have
worked harder
than I have. At the
high end, there is a
serious issue with
the compensation
packages, and some
of the lavish things
people did were
silly and stupid and
poor taste and
dency, which he doesnt have, although peo-
ple on the left probably think he does.
The film does not contain any sex, police
chases or violence. In fact, says Chandor, the
presence of those elements would have driv-
en away his super-star cast, who basically
did the film for free because they saw it was
subtle, interesting, real (and low-budget).
Thanks to their acting but also to the pace,
it is utterly gripping without those classic
thriller trappings. Boiled down, though,
Chandor believes Margin Call is a tragedy.
Tragedy visits each character personally, but
it is the very ideology of their work that is
most tragic. The tragic flaw of capitalism is
that the more money you have, the easier it
is to make money. Thats why it has to be
regulated.
With that, he jumps off the plush sofa,
shakes my hand, smoothes his hair and
heads off to explain why bankers are still
people to the next person.
Margin Call opens in the UK on Friday.
ridiculous, but I have never
entirely begrudged
them.
So is Wall Street a
better place now than
it was before
September 2008? Im
not sure its about
being a better place,
he says, with the prag-
matism I now see as
his trademark. I think
that to expect these
people in the system to
change without help
from the outside is a
fools errand. Based on that
last speech by Tuld [Jeremy Irons
CEO], where he says money is
just paper, people ask me if I think
its all hopeless. Absolutely not! But
we do need to engage: I do think the
banking system needs to realign itself
to be promoting development of businesses
and ingenuity, to help people make things
a more traditional style of banking, in other
words. If you look at the top five investment
banks in the five years before the crash and
what a percentage of profit came from
making money for moneys sake and what
percentage came from traditional invest-
ment and commercial banking practices,
theres no question that it was entirely out
of whack.
I cant help but note that Ironss arch-
Englishness lends an extra air of the sinister
to his role. Was this intentional? It wasnt
just because he was English, says Chandor.
A lot of wonderful actors are English, but
also theres a New York-London financial
exchange and a lot of English people in New
York, so it made sense. But Irons character
does not do what he does because he is pure
evil, but because hes a true capitalist: he
believes what he says. When someones
being pure evil, theres a psychopathic ten-
Zoe Strimpel meets J.C. Chandor, director of the Oscar-tipped Margin Call
ON FILM: BANKER MOVIES MADE SINCE 2008
Capitalism: A Love Story
Michael Moore wouldnt let something like the
credit crunch go by without a stab at the system
that has created global prosperity, and so we have
his 2009 documentary in which he skewers the
casino mentality of Wall Street and indicts capi-
talism as a whole. Tiresome.
Too Big To Fail
Based on the best-selling book about the financial
crisis by Ross Sorkin, this made-for-HBO film aired
in May 2011 and received 11 Emmy nominations. It
focuses on the period between August 2008 and
October 2008, and the actions of then Secretary
of the Treasury Henry Paulson (William Hurt).
Wall Street 2: Money Never Sleeps
Gordon Gekko comes to London 23 years after his
first outing on Wall Street. Were treated to an
enjoyable reworking of the Bud Fox-Gekko dynamic
and its a good watch. The film isnt as fiery or excit-
ing as the first Wall Street (its inevitably autumnal),
but its not mere money-hating tosh either.
Inside Job
A virulently anti-finance film narrated by Matt
Damon that set out to prove that a crime had been
committed by the banking community. The film tries
to expose the realities of subprime loans, derivatives,
leverage and mercilessly homes in on Wall Streets
cocaine-snorting alpha males.
Above: Kevin spacey
stars as a big shot at
a brokerage firm in
Margin Call.
Left: J.C. Chandor,
the films director.
Picture left: Laura
Lean/CITY A.M.
27
T
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DIY SOS: THE BIG BUILD
BBC1, 9PM
Nick Knowles and the team head to
Chesterfield, Derbyshire, where they
help Lisa and Richard Watson
complete an extension.
THE MYSTERY OF EDWIN DROOD
BBC2, 9PM
Two-part thriller based on Charles
Dickens unfinished novel about a
choirmasters obsession with a girl and
the measures he takes to attain her.
THE EXIT LIST
ITV1, 8PM
New series. Game show, hosted by
Matt Allwright, based on an epic
challenge in which players can win a
cash prize by answering questions.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Carling Cup Football:
Crystal Palace v Cardiff City
(Kick-off 8.00pm). 10.15pmA
League of Their Own 11.15pm
Footballs Greatest Managers
11.45pmFootball Asia 12.15am
Carling Cup Football 1.45amSky
Sports Classics 2amFootballs
Greatest 2.30amCopa Del Rey
Football 4.30am-6amCarling
Cup Football
SKY SPORTS 2
6pmPGA Tour Golf 8pmRevista
De La Liga Special 8.55pmLive
Copa Del Rey Football 11pm
Poker 1amSports Unlimited
2am-4amPoker
SKY SPORTS 3
6.30pmPool 7.30pmLive
Greyhound Racing 10pmPGA
Tour Golf 11pmBritish Basketball
1amFIBA Basketball
1.30am-2.30amPool
BRITISH EUROSPORT
5pmWTA Tennis 7.30pm
Australian Open Tennis 8pm
Motorcycling 10pmGT Academy:
Road to Dubai 10.15pmDakar
Rally 11pmMotorcycling
12am-12.45amDakar Rally
ESPN
6.30pmLive Darts: BDO World
Championships 10pmESPN
Kicks: Serie A 10.15pmESPN
Kicks: FA Cup 10.45pmSerie A
Rivals 11.15pmESPN Kicks:
Premier League 11.30pmPress
Pass 2012 12amLive Caribbean
Twenty20 Cricket 3.30amFIS
Alpine Ski World Cup Report 4am
Planet Speed 4.30amESPN
Kicks: FA Cup 5amSerie A
Rivals 5.30am-6amPress Pass
2012
SKY LIVING
7pmCriminal Minds 8pmThe
Biggest Loser 9pmUnforgettable.
New series. 10pmCriminal Minds
11pmBones 12amCSI: Crime
Scene Investigation 1amCriminal
Minds 2.40amMy Wife and Kids
3.30amBones 4.20amCSI:
Crime Scene Investigation
5.10am-6amJerry Springer
BBC THREE
7pmWinter Wipeout 8pmDont
Tell the Bride 9pmWebsex:
Whats the Harm? 10pm
EastEnders 10.30pmLittle
Britain 11pmFamily Guy 11.45pm
American Dad! 12.30amWebsex:
Whats the Harm? 1.30amDont
Tell the Bride 2.25amIs Oral Sex
Safe? 3.25amBeing Human
4.25am-5.20amHow Sex Works
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pm
Shipwrecked: The Island 9pm
90210 10pmThe Cleveland Show
10.30pmAllen Gregory 11pm
Rude Tube: Superstars of the Web
12.05amThe Big Bang Theory
1amScrubs 1.50amHow I Met
Your Mother 2.15amPete Versus
Life 3.10amRules of Engagement
3.35amGreek 4.15amWildfire
5am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmAmerican Pickers
9pmCash Cowboys 10pmPub
Dig 11pmUFO Hunters 12am
Decoding the Past 1amPub Dig
2amCash Cowboys 3amClash of
the Gods 4amAmerica: The
Story of the US 5am-6am
American Pickers
DISCOVERY
7pmMythbusters 8pmRory
McGraths Best of British
Engineering 9pmSwords: Life on
the Line 10pmSwamp Loggers
11pmDeadliest Catch 12amBear
Grylls: Born Survivor 1am
Swords: Life on the Line 2am
Swamp Loggers 3amWheeler
Dealers 3.50amMythbusters
4.40amIndustrial Revelations
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny USA 8pmJon
and Kate Plus 8 9pmEmergency:
Life in the ER 10pmBaby ER
11pmI Didnt Know I Was
Pregnant 12amEmergency 1am
Baby ER 2amI Didnt Know I
Was Pregnant 3amSupernanny
USA 4amA Baby Story
5am-6amBringing Home Baby
SKY1
7pmGot to Dance: Auditions
9pmRoad Wars 10pmFILM
Total Recall 1990. 12.10am
35mm12.40amDog the Bounty
Hunter 1.40amCop Squad
2.30am99 Most Bizarre 3.25am
Road Wars 4.20amProject
Catwalk 5.10am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmCHOICE DIY SOS: The
Big Build
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmBurglar in the House
11.25pmThe League Cup Show
11.55pmFILMHuman Traffic
1999. 1.30amWeatherview
1.35amSign Zone: Frozen Planet
2.35amSign Zone: MasterChef:
The Professionals 3.35amSign
Zone: Youve Been Scammed
4.20am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys
7pmHairy Bikers Best of
British
8pmThe Great Sport Relief
Bake Off
9pmCHOICE The Mystery of
Edwin Drood
10pmHave I Got Old News for
You
10.30pmNewsnight: Weather
11.20pmDarts: BDO World
Championships
12.10amDarts Extra
2.10amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmRiver Monsters
8pmCHOICE The Exit List:
New series. Game show, hosted
by Matt Allwright.
9pmThe Biggest Loser
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMThe Grudge:
Horror remake, starring Sarah
Michelle Gellar. 2004.
12.20amThe Zone; ITV News
Headlines
2.50amCrossing Jordan
3.40am-5.30amITV Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pm4thought.tv
8pmThe Fat Fighters
9pmRogue Baboon: An Inside
Natures Giants Special
10pmShameless 11.15pm
Desperate Housewives 12.15am
Random Acts 12.20amPoker
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
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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 Removes (5)
4 Packs to capacity (5)
7 Armed struggle (3)
8 Make illegal payment
in exchange for
favours (5)
10 Hoot with derision (3)
11 Additional (4)
12 Emit an odour (5)
14 Assignation between
lovers (5)
17 Gusset (5)
20 Climbing plant
supporter (5)
22 Cuckoo pint, for
example (4)
23 Afrmative word (3)
24 Passing from
physical life (5)
26 Domestic swine (3)
27 Wayside plant with
daisy-like owers (5)
28 Throw out (5)
DOWN
1 Pipes (5)
2 Colourful ornamental
carp (3)
3 Expand abnormally (5)
4 Bottle that holds oil or
vinegar for the table (5)
5 Church associated
with a convent (5)
6 Diversion requiring
physical exertion (5)
9 Beautiful young woman (5)
13 Chaps (3)
15 Having ample space (5)
16 H Rider Haggard novel (3)
17 Adult insect (5)
18 Leather with a
napped surface (5)
19 Brownish-grey colour (5)
20 Shift, move very
slightly (5)
21 Brightest star in the
constellation Orion (5)
25 Mischievous little fairy (3)
R
E
N
V
R O
I
T
T
4

4
4

L H A S A L A G O S
A R G S O
R E T I R E T U B A
I D A N T E P
A F E W T O R S O
T C W R Y T A
M O C H A B A R S
B L O N G G P
A L T O T H R I C E
C C E N C
K H A K I E I G H T
9 8 2 1 7 7 1
7 9 3 1 6 8 5 4 2
2 5 1 9 7 8 4
2 3 1 2 3
7 8 5 9 4 6 5 1
9 4 8 6 9 9 7
6 2 7 2 8 9 6 3
1 8 3 1 5
1 3 4 2 8 7 9
2 5 9 3 1 6 7 4 8
4 6 8 3 9 1 2
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PROMINENT
Lifestyle | TV&Games
CITYA.M. 10 JANUARY 2012 28
THE FIRST humanitarian sports-
based project Laureus supported
back in 2000 was the Mathare Youth
Sports Association, based in one of
the largest and poorest slums in
Nairobi, Kenya.
With disease widespread and Aids
a serious problem, the project pio-
neered the use of football as a tool to
encourage co-operation and raise
self-esteem in the young people of
the community. Thousands of young-
sters now play in leagues, where suc-
cess is measured not just by the goals
scored in matches, but by the work
the young people do in cleaning up
the slums.
From that small start, Laureus has
grown to the point where there are
now 91 such projects around the
world, including five in London,
which mainly focus on combating
juvenile crime, gang culture and the
lack of education.
One such project is Track Academy
in Willesden, north London, set up
by former British triple-jump star
Connie Henry.
The area surrounding Willesden
Sports Centre is one of the most
socially deprived in the city with low
levels of educational achievement.
AT THE very first Laureus Awards
Ceremony in Monaco in 2000, President
Nelson Mandela, the Patron of Laureus,
made the visionary speech which has
become the philosophy of Laureus and the
driving force which has shaped its work.
President Mandela said: Sport has the
power to change the world. It has the
power to unite people in a way that little
else does. Sport can awaken hope where
there was previously only despair.
To achieve these goals, Laureus has
become much more than a spectacular
red carpet event held each year to cele-
brate the best in sport. It is now a year-
round charity dedicated to effecting social
change through sport.
Members of the Laureus World Sports
Academy sporting legends such as
Boris Becker (right), Sir Ian
Botham, Sir Bobby Charlton, Lord
Sebastian Coe, Marcel Desailly, Tanni
Grey-Thompson, Michael Johnson,
John McEnroe, Edwin Moses,
Martina Navratilova, Jack Nicklaus,
Gary Player, Sir Steve
Redgrave and Mark Spitz
volunteer their time to
act as global ambassa-
dors for the Laureus
Sport for Good
Foundation.
The mission of the Laureus Foundation is
to use sport as the means to combat
some of the worlds toughest social chal-
lenges facing young people today such as
juvenile crime, gangs, HIV/Aids, discrimi-
nation, social exclusion, landmines aware-
ness and health problems such as obesity.
The academy currently numbers 47 and
new members are elected from time to
time. The newest additions are British
Olympic rowing star Sir Steve Redgrave
and Australias five-times motorcycle
world champion Mick Doohan. Members
all share a belief in the power of sport to
break down barriers, bring people togeth-
er and to improve the lives of young peo-
ple around the world.
Now the Laureus World Sports Awards
Ceremony not only honours the
greatest sportsmen and sports-
women in the world each year,
but also acts as a showcase for
the Laureus Sport for Good
Foundation, increasing global
awareness of its work.
Laureus operates with the support
of its founding patrons,
Richemont and Daimler and its
global partners, Mercedes-Benz,
IWC Schaffhausen and
Vodafone. See www.laureus.com
for more information.
T
HE 2012 Laureus World Sports
Awards are coming to London
next month and City A.M. will
be providing the best coverage
over the next few weeks in the build-up
to this world-famous event.
The Laureus World Sports Awards
Ceremony, to be held at Central Hall,
Westminster, on Monday 6 February, is
recognised as the premier honours
event in the international sporting cal-
endar as stars come together to salute
the finest sportsmen and sports-
women of the year.
Among the winners who have
received awards at previous cere-
monies are Jenson Button, Roger
Federer, Sir Alex Ferguson, Lewis
Hamilton, Justine Henin, Kelly Holmes,
Rafael Nadal, Sir Steve Redgrave,
Ronaldo, Michael Schumacher, Kelly
Slater, Serena Williams and Zinedine
Zidane.
Guests attending the ceremony have
included David and Victoria Beckham,
Sir Sean Connery, Michael Douglas and
Catherine Zeta-Jones, Morgan
Freeman, Teri Hatcher, Eva Longoria,
Gwyneth Paltrow and Kevin Spacey.
Boris Johnson, the Mayor of London,
said: I am excited that the Laureus
World Sports Awards and the Laureus
Sport for Good Foundation have decid-
ed to bring the awards to London for
2012. Laureus and I share a commit-
ment to making sport a positive part of
everyones life regardless of age and
ability. Celebrating the power of sport
here in London with the worlds sport-
ing superstars will provide the perfect
start to our Olympic year.
And Laureus World Sports Academy
member Sebastian Coe, chairman of
ITS SHOWTIME
Sport
WORLDSPORTSMANOF THE YEAR
Last years winner: Rafael Nadal
This years nominations: Usain Bolt (Jamaica)
Athletics; Novak Djokovic (Serbia) Tennis; Cadel
Evans (Australia) Cycling; Lionel Messi (Argentina)
Football; Dirk Nowitzki (Germany) Basketball;
Sebastian Vettel (Germany) Formula One
WORLDSPORTSWOMANOF THE YEAR
Last years winner: Lindsey Vonn
This years nominations: Vivian Cheruiyot (Kenya)
Athletics; Maria Hoefl-Riesch (Germany) Alpine
Skiing; Carmelita Jeter (US) Athletics; Petra Kvitova
(Czech) Tennis; Homare Sawa (Japan) Football; Yani
Tseng (Taiwan) Golf
WORLDTEAMOF THE YEAR
Last years winner: Spain World Cup Team
This years nominations: All Blacks (New Zealand)
Rugby Union; FC Barcelona (Spain) Football; Dallas
Mavericks (US) Basketball; England Cricket Team;
Japan Womens Football Team; Red Bull (Austria)
Motor Racing
WORLDBREAKTHROUGHOF THE YEAR
Last years winner: Martin Kaymer
This years nominations: Yohan Blake (Jamaica)
Athletics; Mo Farah (UK) Athletics; Petra Kvitova
(Czech Republic) Tennis; Rory McIlroy (UK) Golf; Li
Na (China) Tennis; Oscar Pistorius (SA) Athletics
WORLDCOMEBACKOF THE YEAR
Last years winner: Valentino Rossi
This years nominations: Eric Abidal (France)
Football; Darren Clarke (UK) Golf; Crusaders (NZ)
Rugby Union; Sergio Garcia (Spain) Golf; Liu Xiang
(China) Athletics; Queensland Reds (Australia)
Rugby Union
WORLDSPORTSPERSONWITHADISABILITY
Last years winner: Verena Bentele
This years nominations: Terezinha Guilhermina
(Brazil) Athletics; Oscar Pistorius (SA) Athletics;
Esther Vergeer (Netherlands) Wheelchair Tennis;
David Weir (UK) Wheelchair Athletics; Irek Zaripov
(Russia) Nordic Skiing
WORLDACTIONSPORTSPERSONOF THE YEAR
Last years winner: Kelly Slater
This years nominations: Jamie Bestwick (UK) BMX;
Philip Koester (Germany) Windsurfing; Carissa
Moore (US) Surfing; Travis Rice (US) Snowboarding;
Kelly Slater (US) Surfing; Shaun White (US)
Skateboarding/Snowboarding
LAUREUS AWARDS: THE CATEGORIES
the London 2012 organising commit-
tee, said: I am delighted that we are
able to bring the Laureus Awards
Ceremony to London. We are all hop-
ing 2012 will be one of the most mem-
orable years for sport in this country
and we hope everyone who comes to
London for the awards will get a
foretaste of the excitement to come.
The nominees six in each catego-
ry are chosen by a worldwide
media selection panel from more
than 100 countries. The winners are
then picked from that list by the ulti-
mate sports jury: the 47 members of
the Laureus World Sports Academy,
the living legends of sport honour-
ing the great athletes of today. Each
winner receives a prestigious hand-
crafted Laureus statuette.
Proceeds from the Laureus World
Sports Awards directly benefit and
underpin the work of the charitable
Laureus Sport for Good Foundation
which supports 91 community sports-
based projects around the world.
Since its inception, Laureus has sup-
ported projects that have helped to
improve the lives of more than 1.5m
young people.
The planets superstars
are descending on the
capital for the Laureus
World Sports Awards
FANCY rubbing shoulders with the very
biggest names from the world of sport at
next months glitzy ceremony in London? Of
course you do. Well you are in luck, because
City A.M. has a pair of tickets to the Laureus
World Sports Awards at Central Hall,
Westminster, on 6 February, and the exclu-
sive aftershow party to give away to a lucky
reader. Just keep watching these pages for
full details of how to win this money-cant-
buy prize in the coming weeks.
WIN A PAIR OF TICKETS
Last years winners
included Rafa Nadal
and Kelly Slater
(main), while the bash
attracts stars like
Kevin Spacey (inset).
Picture: GETTY; IAN
MCILGORM
Track Academy helps to combat anti-
social behaviour by using sport as the
means to interest young people and
bring them into a positive environ-
ment with inspirational role models
and educational support.
The project combines a track train-
ing programme with a mentor and
study plan which helps participants
to overcome barriers in their life,
identifying issues behind anti-social
behaviour and non-attendance at
school and advising on careers and
further education opportunities.
Laureus Academy Member and
Olympic track legend Michael
Johnson said: Track Academy does a
very important job in this neighbour-
hood. When you talk to the young
people you realise what a difference
sport can make to their hopes and
dreams of a better future.
What is Laureus? A brief history
How sport can help millions
Steve Redgrave, Michael Johnson and Lord Coe are supporters Picture: GETTY
ENGLANDS delight at beginning
their tour of the UAE with a morale-
boosting three-wicket victory over an
ICC Combined XI yesterday was
quickly tempered by the news that
Tim Bresnan has been ruled out of
the upcoming Test series against
Pakistan with an elbow injury.
The Yorkshireman (right) missed
the first of two warm-up matches,
which England won after successful-
ly chasing down 261, with a recur-
rence of a problem that required
surgery in December. England are
optimistic that the 26-year-old
will return in time for the one-
day series next month, but hopes
of him featuring in any of the
three Tests, the first of
which begins next
Tuesday, were dashed
when he failed to come
through a net session
yesterday.
Bresnan tried to
bowl having had an
injection and a good
rest, said skipper
Andrew Strauss. We
were all expecting
him to be fine. But
its very painful
and given that, hes not going to
be able to play for two or three
weeks, he will be flying home.
England also have fitness
concerns over spinner
Graeme Swann, who is
set to undergo a
scan on a tight leg
muscle, and fast
bowler Chris
Tremlett. The Surrey
paceman, vying with
Steven Finn to replace
Bresnan in the Test team, is
struggling with an eye
infection.
More encouragingly, how-
ever, wicketkeeper Matt
Prior has recovered from a bruised
finger and will be fit to play in the
second practice match against a
Pakistan Cricket Board XI tomorrow.
Strauss, meanwhile, top scored
with 76 as England completed a tense
victory which had been set-up by the
skippers adventurous declaration on
Sunday, when his team still trailed by
98 runs.
England had 69 overs to reach
their target after the ICC Combined
XI declared on 164-9 and the tourists
looked in control when they reached
133-2, but a collapse, similar to the
one they suffered in the first innings,
meant the margin of victory was
slimmer than it should have been.
Bresnan injury blow mars England win
LONDON 2012 organisers should have
been well equipped to cope with the
high demand for second hand
Olympic tickets, industry experts said
yesterday.
Games chiefs Locog were forced to
suspend the official re-sale portal,
which remained offline last night,
designed to allow customers the
chance to sell on any unwanted tick-
ets at face value just hours after it
opened last Friday.
Thousands of customers logged on
to the site last week only to be frustrat-
ed in their attempts to use the service
and chief executive of online ticket
exchange Seatwave, Joe Cohen,
believes there is no way the system
should have buckled, even if Locog
underestimated the traffic they were
likely to experience.
I get the impression the problems
weve seen with the re-sale system are
very little to do with volume of inter-
est, Cohen told City A.M. The
demand can still be high but if you
speculate that of the six million tick-
ets that have been purchased so far by
just over a million people, lets say an
outlandish proportion of around 20
per cent wanted to offload their tick-
ets thats around 250,000 people.
And even if all those people logged
on at the same time thats a weight of
traffic that a business like ours and
others in the industry would be able
to and are designed to cope with com-
fortably.
Locog are currently working with
their official ticketing partner
Ticketmaster to resolve the problems
with the service but were unable to
put a date on when it would be up and
running again.
Those who bought tickets directly
from Locog should be able to submit
their tickets for re-sale on the 2012
ticketing website until 3 February.
Demand no
excuse for
latest 2012
ticket fiasco
BY JAMES GOLDMAN
OLYMPICS
BY JAMES GOLDMAN
CRICKET
Sport
30
SPORT | IN BRIEF
Chambers to learn Olympic fate
OLYMPICS: Controversial sprinter Dwain
Chambers will discover on 12 March
whether he is likely to be able to overturn
his ban and compete for Britain at
London 2012. That is the date that has
been set for the Court of Arbitration for
Sport to rule on the validity of the British
Olympic Associations lifetime ban on ath-
letes who have ever committed a serious
doping offence. If the BOAs rule is found
to be illegal, Chambers will be free to run
for Team GB, as would cyclist David
Millar, although he has indicated he is
unlikely to appeal.
Murray fourth seed in Aussie Open
TENNIS: Britains Andy Murray has been
seeded fourth for the 2012 Australian
Open which begins on Monday.
Meanwhile, Great Britain have been
drawn in the same group as the
Netherlands, Israel and Portugal for Judy
Murrays first tie as Fed Cup captain.
Strausss return to form overshadowed as skipper conrms all-rounder out of Test series
ENRAPTURED Arsenal manager
Arsene Wenger admitted to being in
dreamland after returning hero
Thierry Henry scored the goal that
booked their place in the FA Cup
fourth round just eight minutes into
his emotionally-charged comeback.
Henry, on loan from New York Red
Bulls, reminded adoring
Gunners fans how he
racked up a club record
226 goals in 370 appear-
ances with a 77th-
minute strike that bore
all his hallmarks: calm,
elegance and ruthless-
ness.
The 34-year-old, who
left the club in 2007, had
climbed off the bench to
make his second debut just
moments earlier, and celebrated his
Roy of the Rovers-style impact by
sprinting up the touchline to embrace
Wenger.
It was a little bit like a dream. It was
the story you would tell some young
kids if you wanted to tell a story about
football. Its not often like that in our
game, but sometimes it happens, said
the Gunner boss (inset), whose side will
host Aston Villa in the fourth round.
When he got in this position I
thought, Oh, thats your angle, but its
a bit too close and thats when he
surprised me. He didnt force the shot
and still made it look easy. I thought it
was a bit too much on the left, but he
has that special finishing -- that was
Thierry Henry finishing.
Wenger revealed Henrys loan deal is
for a maximum of eight weeks, ruling
out the possibility he could remain for
the season, and insisted he could play
alongside top scorer Robin van Persie --
but had not decided if he would
against Swansea on Sunday.
Robin will be back against
Swansea, added Wenger.
Will Thierry start or not? I dont
know yet. He can play behind or in
front of Robin or on the flank, Robin
can play on the flank too, but I dont
know yet what I will do.
The former France and Barcelona
star, who only completed his move
minutes before Fridays dead-
line for this match, struggled
to convey his emotions after
a dream reunion.
I came back from holi-
day 15 days ago, said
Henry. I never thought Id
play for Arsenal again or
score the winner. I really
dont know what to say I love
the club. Hopefully I can do
more. I hope it wont be the last one.
The feeling I had when I scored was
amazing.
Henrys electrifying cameo only cast
Arsenals preceding struggle to pierce
the Leeds defence in an even harsher
light, with a tame Mikel Arteta shot
saved by Andy Lonergan the most dan-
gerous moment.
The visitors might even have
snatched a draw were it not for
Wojciech Szczesnys reflexes, the Pole
adroitly parrying substitute Mikkel
Forssells sharp last-minute turn and
shot -- but there was to be no denying
Henry the limelight, 12 years and 155
days after his first Gunners debut.
Henrys goal was
his 227th for the
club and first in
five years
Picture: GETTY
Arsenal legend Henry marks his return to the club in
the grandest manner by scoring the only goal as
Gunners set up FA Cup fourth round tie against Villa
BY FRANK DALLERES AT EMIRATES STADIUM
FOOTBALL
1
0
ARSENAL
LEEDS UNITED
SECOND COMING
THE MYSTERY man at the heart of
the row over British fighter Amir
Khans controversial defeat to
Lamont Peterson last month,
Mustafa Ameen, has broken his
silence to declare his innocence of
any wrongdoing.
Ameen has been accused of
being an unauthorised presence at
ringside for the WBA and IBF light-
welterweight title bout, amid sug-
gestions that judges scorecards
were tampered with before
Peterson won by split decision.
Ive got nothing to hide. Im not
running or ducking or anything,
said Ameen.
I can discuss, without talking
about the merits of what hap-
pened, I will just say that theres a
lot of misinformation. Ive been
called a lot of names over the past
several days and that attacks my
credibility, attacks my reputation
that I worked very hard on in all
my years in boxing.
Khans American trainer Freddie
Roach named Ameen as the mys-
tery man on Saturday, alleging
that he had no credentials, is
not a member of any boxing organ-
isation and there was no reason
for him to be at ringside. Ameen,
who is thought to have managed
business interests of other US fight-
ers, retorted: Nobody seemed to
know who I was, yet 24 hours later
everybody in boxing, including the
trainer of Amir Khan and every-
body else, said I know him.
He added: Im not a mystery
man at all. It puzzles me that Im
this mysterious guy that dropped
out of a sewer and they say I tried
to fix a fight.
Ameen is due to attend the IBFs
hearing later this month, which is
expected to rule on Khans demand
for a re-match. The WBA has
already agreed that the fight
should be re-run.
Hughes seeking
clarity before
joining Rangers
Mystery man Ameen has nothing to
hide in row over Khan title defeat
FORMER Fulham boss Mark
Hughes will today hold a second
round of talks with Queens Park
Rangers as he edges closer to
becoming the struggling west
London clubs new manager.
Hughes and his advisor Kia
Joorabchian were at Loftus Road
yesterday, less than 24 hours after
confirmation of Neil Warnocks
departure, attempting to thrash
out a deal which would see the
48-year-old return to top flight
management seven months
after he opted to turn his back
on Fulham having spent just
one season at the club.
The Welshman is due to
hold further talks
today before he com-
mits to a team who
have sunk to 17th in
the Premier table
League having lost
eight of their last
12 games.
Theres a lot
more to discuss and
well wait until the
morning, said Hughes
(right). Were still dis-
cussing the ideas the club have.
Im pleased with how its gone
but nothing is confirmed.
Ive got to think very carefully
about whats been said today. We
have to discuss a number of
things but it went well.
Its about thinking things
over and well see what happens
in the morning.
Im an ambitious manager
and hopefully the next club Im
at can match those ambitions.
Meanwhile, striker Jay
Bothroyd, signed by the
outgoing Warnock from
Cardiff in the summer,
believes the impending
appointment of Hughes
manager would be
tremendous.
Speaking on
T w i t t e r ,
Bothroyd said:
Obviously Im
sad to see the
manager and
Keith Curle go
but Mark
Hughes and
his team
would be a
t r e me nd o us
appointment.
BY JAMES GOLDMAN
FOOTBALL
31
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APIA INTCRNATIONA| (S]re])-Her's Sirles Rr I. l
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wcmer's Sirles Rr I. D O||a||a1+ (S1|) |t S Per (O|r) oZ
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Atarerla (B|r) |t S Vaee|e (SW|) oZ o, J J+r|a1|c (Ser) |t
J Oaeres (Oer) o J ret, (8) H Bartcli (|r+) |t P Herca
(S|a) oJ oJ, S Ka/retsa1+ (Ras) |t (6) V Zcrarea (Ras) o
oZ, O Sc|eepers (Rs+) |t V O/|r| (Har) o4 oZ, (4) N |i (O|r)
|t E V+|+ra1+ (Ras) oO oJ, | Sc||+1are (lt+) |t (5) S Stcsar
(Aas) oZ o4, D H+rtac|a1+ (S1|) |t R V|rc| (lt+) 5 oZ, A
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wTA HOORI||A HOBART INTCRNATIONA|-wcmer's Sirles
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Or]st+| P+|+ce 1 O+r|ff (8pm) ................................................................................
apewer |eetba|| |eaqae 0ae
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Herefar 1 Br|sta| Ra1ers ...........................................................................................
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email sport@cityam.com
KEY MOMENT
What else could it be? Eight minutes after
coming off the bench to an almighty roar,
Henry conjured a trademark finish like hed
never been away, peeling off the defender,
collecting Songs pass, opening his body
and stroking a measured finish into the far
corner. Arsenals fans, and their favourite
son, erupted.
TALKING POINT
With one classy swing of his trusty right
foot, Henry has shown hes still got it, but
that raises the question of what Wenger
does with the clubs all-time leading
goalscorer: play him in a wide left role, in
place of Gervinho or the lethargic
Arshavin, or alter the teams shape to
accommodate both him and Van Persie in
central positions? Start him or keep him
as an impact substitution? The options
are varied and plenty Wenger has until
Sundays Premier League fixture at
Swansea to decide.
GAME STATS
ARSENAL 1 - 0 LEEDS
8 ATTEMPTS ON TARGET 4
16 ATTEMPTS OFF TARGET 2
12 CORNERS 1
63% POSSESSION 37%
1 YELLOW CARDS 2
0 RED CARDS 0
2 OFFSIDES 2
DUGOUT VIEW
It was probably written in the stars
that would happen but thats the class of
Thierry Henry hes shown that so many
times. How many times has he been in
that position and bent one into the bot-
tom corner? You always fear the worst
when he comes on but I thought the
team handled him pretty well. You just
know he can do something out of noth-
ing, and thats why hes the player he has
been. I just wish hed signed for Arsenal
a few weeks ago and we might not have
had all the furore that we have.
Leeds boss Simon Grayson
MATCH ANALYSIS
BY FRANK DALLERES
BY FRANK DALLERES
BOXING
Ferguson backs Rooney in ref row

MANCHESTER United boss Sir
Alex Ferguson has defended
Wayne Rooney after Manchester
City manager Roberto Mancini
accused the striker of playing a
part in Vincent Kompanys send-
ing-off during Sundays clash.
Mancini argued that Rooney
lobbied Chris Foy before the refer-
ee showed a straight red card to
City defender Kompany for a two-
footed tackle on Nani in an FA Cup
third round match United went on
to win 3-2.
But Ferguson said: I have no
complaints about Wayne, I dont
think it was unacceptable what he
did. I think it was a natural reac-
tion to a bad challenge from an
opponent.

Cityam 2011-01-10

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