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then head of the Barclays Capital
investment banking division, which
suggests that Paul Tucker, the
deputy governor of the Bank of
England, was aware of irregularities
in Libor submissions made by
Barclays and other banks.
Mr Tucker stated...that while he
was certain we did not need advice,
that it did not always need to be the
case that [the banks Libor submis-
sions] appeared as high as we have
recently, Diamond wrote in an
email to fellow executives.
Bank of England officials declined
to comment on the content of the
email but repeated its position that
two separate probes on both sides of
the Atlantic had found no evidence
that Tucker had encouraged the fal-
sification of Libor submissions. City
A.M. understands that Paul Tucker
was questioned by investigators as
part of the probe that led to
Barclays record-breaking 290m
fines.
Yesterday the FSA confirmed that
its investigators were aware of this
email but concluded no instruc-
tion was given by the Bank in rela-
tion to Libor submissions.
But the memos claim that Tucker
was also receiving calls from
senior Whitehall staff on the issue
raised the possibility that members
of the previous Labour government
could be drawn into the affair.
When Diamond suggested that
Tucker should tell these Whitehall
staff that many other banks were
also distorting their Libor submis-
sions, the Bank of England official
allegedly replied: oh, that would be
worse.
Last night Labour politicians,
including shadow chancellor Ed
Balls and former chancellor
Alistair Darling, queued up to
BOB Diamond will today face ques-
tions from parliament on his role in
the Libor-fixing scandal, following a
dramatic 12 hours that began with
his resignation as chief executive of
Barclays and ended with the Bank
of England battling to keep itself
out of the crisis.
Diamonds resignation was
announced early yesterday morning
after he decided overnight that his
position had become unsustainable.
The external pressure placed on
Barclays has reached a level that
risks damaging the franchise I
cannot let that happen, he said in a
statement.
Barclays declined to comment on
claims that the decision was made
after Bank of England governor
Mervyn King and Lord Turner, the
chairman of the Financial Services
Authority (FSA), personally contact-
ed directors and encouraged
Diamond to step down.
But it was a sudden change in
direction for the Barclays board,
which had originally decided its
chief executive would fight on after
chairman Marcus Agius resigned in
an attempt to defuse the situation.
Agius responded to the turn of
events by delaying his departure
and instead taking on the new role
of executive chairman, tasked with
finding a new chief executive and
running the company in the inter-
im period.
What I did yesterday was indicate
my intention to resign. I was not
resigning with immediate effect. I
am still chairman and I still have
the full confidence of the board. I
am the obvious person to lead the
succession, he explained.
But by lunchtime he found him-
self with an additional board vacan-
cy as chief operating officer Jerry
del Missier also quit just 11 days
after taking up the position.
Jerry was the most senior officer
who gave instructions to lower the
Libor rate, Agius told reporters.
That obviously put him in a very
difficult position.
Barclays then released an internal
2008 memo written by Diamond,
BY JAMES WATERSON
Bob Diamond resigned from Barclays yesterday with immediate effect
Crisis spreads as Bob Diamond says the
Bank of England knew about rate fixing
claim they were not involved in dis-
cussions surrounding the Libor rate
as the focus switched to the previous
administrations role.
Attention will now shift to
Diamonds appearance at todays
Treasury select committee, where his
answers will enjoy the legal immuni-
ty provided by parliamentary privi-
lege.
Labour MP John Mann, a member of
the committee, told City A.M. that he
will use the opportunity to demand
Barclays call in external investigators
to deal with the systematic fraud
that was being carried out in their
trading rooms.
I want to know why Barclays
havent brought in the Serious Fraud
Office to have these criminals arrest-
ed, he said. At their weekly execu-
tive meetings they got reports on
Libor. So how come Bob Diamond
was so incompetent that he couldnt
spot market manipulation for three
years? He also predicted that anoth-
er 20 banks, including RBS will face
similar charges.
Fi l e Note: Cal l to RED from Paul Tucker, Bank of Engl and
Date: 29th October 2008
Further to our last call, Mr Tucker reiterated that he had received calls from
a number of senior figures within Whitehall to question why Barclays was
always toward the top end of the Libor pricing. His response was you
have to pay what you have to pay. I asked if he could relay the reality,
that not all banks were providing quotes at the levels that represented real
transactions, his response oh, that would be worse.
I explained again our market rate driven policy and that it had recently
meant that we appeared in the top quartile and on occasion the top decile
of the pricing. Equally I noted that we continued to see others in the
market posting rates at levels that were not representative of where they
would actually undertake business. This latter point has on occasion
pushed us higher than would otherwise appear to be the case. In fact, we
are not having to pay up for money at all.
Mr Tucker stated the levels of calls he was receiving from Whitehall were
senior and that while he was certain we did not need advice, that it did not
always need to be the case that we appeared as high as we have recently.
RED
An internal memo from Robert Bob
Edward Diamond - aka RED
MANCHESTER
UNITED FLOAT
CLUB REVEALS ITS
AMERICAN LISTING
MORE ON PAGES:
2, 3, 4, 5, 6, 16, 17
Barclays PLC
3Jul 27Jun 28Jun 29Jun 2Jul
160
170
180
190
p
167.05
3Jul
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
MPs set to grill Bob ahead
of their full investigation
LORDS rejected Labour calls for a
judge-led inquiry into the Libor
fixing scandal last night, increas-
ing the chance that the govern-
ment will get its favoured
parliamentary investigation into
the manipulation of the key inter-
bank interest rate.
However David Cameron and
George Osborne may not get the
exact panel of MPs and peers they
hope for, with Treasury select
committee (TSC) chairman
Andrew Tyrie MP warning he will
only lead the inquiry if he has the
full backing of the House of
Commons.
That looks unlikely to happen, as
Labour have forced a debate on
the issue tomorrow, with shadow
chancellor Ed Balls arguing that
only when you have the forensic
judicial and QC process you can
really open this up.
Meanwhile today the committee
will grill former Barclays chief
executive Bob Diamond on his
role in the Libor affair.
It is understood that the com-
mittees members want to find
out how many people at Barclays
knew about the false interest rate
information being given by
Barclays, how many people were
involved in the activity, and
Facebook hit by glitches after email
switch
Facebook has been racing to deal with a
series of technical glitches after making a
controversial change to its members
email settings that has been criticised as a
way to promote its service at the expense
of competitors.
African minerals names new head
Frank Timis plans to step back from
running African Minerals, relinquishing
the role of executive chairman following
the recruitment of a new chief executive.
Keith Calder will replace Alan Watling as
chief executive, with Timis handing over
operational control in due course.
Ireland returns to international debt
markets
Ireland will return to international debt
markets tomorrow for the first time since
it was forced into an EU and IMF bailout
when it holds an auction for three-month
treasury bills. Irelands National Treasury
Management Agency said it would sell
500m worth of bills maturing on 15
October in the first debt auction it has
held since September 2010.
Oxford University Press learns an
expensive lesson
One of Britains most respected academic
publishers will hand over 1.9m in ill-
gotten sales after it emerged that it had
paid bribes to win contracts in Africa.
North Sea oil minnow prepares to
join big fish in London markets
Caithness Petroleum, say those in the
know, has hired Bank of America Merrill
Lynch and Morgan Stanley to help to
persuade investors to sign up for shares.
Boeing says 34,000 new jets needed
According to plane-maker Boeing, 2.9
trillion worth of passenger jets will be
required by airlines in the next 20 years.
Global airline traffic will rise by five per
cent per year while cargo traffic will
increase by 5.2 per cent.
Virgin slams competition body
Virgin Media accused the Competition
Commission of irrational behaviour after
it scrapped plans to curb BSkyBs
stranglehold on buying movie rights.
Spain says aid may flow straight to
banks
The terms of an agreement to provide up
to 100bn in EU aid to Spains banking
sector will probably allow the funds to be
channeled directly to banks, Spains
finance minister said yesterday.
ECB tightens lending rules on banks
The European Central Bank yesterday
tightened its lending conditions in what
seems a foretaste of the more active role
it will soon have in Eurozone banking.
REVELATIONS that a number of
senior officials in Whitehall
allegedly raised questions about
Barclays Libor submissions last
night led to fevered speculation
about the previous Labour
governments role in the scandal.
The claims are reported in a
memo sent by Barclays Bob
Diamond in 2008 at the height of
the financial crisis.
Alistair Darling, who was
chancellor at the time the alleged
interventions took place, said such
advice would be indefensible.
I can think of no circumstances
that anyone would ever suggest
wrongdoing like this, he told
Channel 4 News.
Shadow chancellor Ed Balls, who
held the position of economic
secretary to the Treasury until
2007, said he had absolutely no
idea about Libor-fixing because
he was serving as secretary of state
for children, schools and families
at the time of the financial crisis.
Questions have also been raised
about the role of Baroness Vadera,
then a Labour economic adviser
who co-authored a paper entitled
Reducing Libor in late 2008.
Last night a spokesman said she
has no recollection of speaking to
Paul Tucker or anyone else the
Bank of England about the price
setting of Libor.
Labours role in
Libor discussion
under scrutiny
Andrew Tyrie MP will lead MPs questioning ex-Barclays boss Bob Diamond this afternoon
2
LIBOR SCANDAL
BY JAMES WATERSON
BOB Diamond, who lost his job
yesterday, now stands to lose
millions of pounds worth of
unvested shares as Barclays
directors prepare to repossess the
former chief executives bonuses.
Sources close to the matter said
yesterday that Diamond, who
resigned as boss of Barclays
yesterday after the bank was
shamed for rigging interest rates,
faces having his share awards
rescinded if he does not relinquish
them himself.
Speaking to reporters yesterday,
Barclays new chairman Marcus
Agius said the bank has not got
around to dealing with the issue
of Diamonds pay. We are hours
into this situation. Give us a
chance, he added.
The amount Diamond stands to
lose is unclear, as his future
bonuses are subject to a variety of
conditions, but he is set to receive
millions of pounds worth of
deferred shares from previous
bonuses and future shares from
long-term incentive schemes.
Diamond, who joined Barclays
in 1996, was paid a 1.35m salary
last year, and over 5m worth of
deferred shares in just the past
two years.
The bankers pay was rejected by
32 per cent of shareholders at
Barclays general meeting in April.
Diamond faces
calls to return
share awards
BY LAUREN DAVIDSON
BY TIM WALLACE
To contact the newsdesk email news@cityam.com
T
HIS is no longer just a crisis for
Barclays, even though that
particular bank has just
suffered a devastating blow. This
is now a crisis that could engulf the
entire British establishment in a
much broader way than anything we
saw in 2008-09. The questions are
piling up at an astonishing rate.
Remember that there are two
strands to the Libor manipulation
scandal: there was a set of disgusting
actions by several traders at Barclays
(and other banks) which saw them
influence the Libor setters to try and
serve their own financial self-interest.
Astonishingly, nobody has yet been
prosecuted for these disgraceful acts.
Then there was a decision from the
top of Barclays apparently, by COO
Jerry del Missier, who also quit yester-
day to push down their Libor sub-
missions to suggest that they were in
EDITORS
LETTER
ALLISTER HEATH
Crisis threatens UKs entire politico-financial establishment
WEDNESDAY 4 JULY 2012
a better position as a bank than they
actually were. This policy was also
pursued by other banks. What makes
all of this explosive is that Barclays
believes that it had informed the
Bank of England that others were dis-
torting Libor in 2008 and that it
only joined in after that conversation.
According to Bob Diamonds version
of events, Paul Tucker, the Banks
deputy governor (and until now the
frontrunner to become governor next
year) sounded almost sympathetic to
Barclays plight in a crucial telephone
call, arguing that perhaps its rate
neednt be as high as it was and
implying that senior Whitehall fig-
ures agreed. However, and somewhat
confusingly, Barclays and the Bank
both deny that Diamond was told or
given the green light to cut his Libor
submissions. Instead, del Missier is
being blamed for having misinter-
preted the memo.
Who knew what, and when? Did the
Treasury under Labour know what
was going on with Libor? How could
it not have? What about the Bank of
England? Why didnt it act?
We also need to find out why
Diamond suddenly performed a U-
turn and resigned. Did Sir Mervyn
King and Adair Turner tell the board
to fire him, as seems to be the case?
Did George Osborne endorse this?
And did Diamonds resignation have
His strategy is to pretend that all of
the problems of the past few years
came from the culture of banks.
But any broader inquiry which also
looked at the role of regulators (and
the inane implicit guarantees, which
fuelled moral hazard and risk-taking)
and of the central bank which
inflated the credit bubble more than
anybody else would reflect extreme-
ly poorly on Labour. The growing
Libor scandal will be devastating for
Miliband if senior Labour figures are
found to have turned a blind eye or
deliberately encouraged wrong prac-
tices. This afternoons grilling by the
Treasury select committee of
Diamond could be a watershed
moment in Britains political and eco-
nomic history. Let us hope he lets rip.
anything to do with the fact that
Barclays had started to fight back and
seemingly implicated the central
bank in the whole affair? If so, we
need to decide whether its right that
the authorities have such power in a
modern, open society; they dont,
after all, own Barclays. In past
decades, it was accepted that the
Bank was at the top of the Citys peck-
ing order, that it wielded immense
powers and that it could informally
sack any banker without any possibil-
ity of appeal or scrutiny. But we live in
a different society today, one which is
meant to be governed by formal pro-
cedures and rules, in an American
kind of way. So which is it to be?
It is hard to know what Ed
Milibands game is. He thinks hes
managed to outfox Osborne by calling
for a judicial inquiry but in reality
could be about to blow himself up.
whether adequate controls have
been put in place to stop the manip-
ulation from happening again.
They are also expected to try and
cast some light on Diamonds rela-
tionship with the Bank of Englands
deputy governor Paul Tucker.
Evidence submitted to the TSC
includes notes made by Diamond of
a conversation with Tucker in late
2008, claiming they discussed irreg-
ular Libor readings.
The TSC expects to uncover so
much information from Diamond
and the evidence already submitted
that it has delayed the interrogation
of Barclays chairman Marcus Agius
and other non-executive directors
until next week, rather than tomor-
row as initially planed.
[This] is not a one-off. I expect the
Bank of England, the FSA and other
banks to be called in the in the next
few weeks, TSC member John
Mann said.
I am quite happy to have former
Labour ministers such as Baroness
Vadera called in front of the com-
mittee. We will hold any govern-
ment to account.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
G
E
T
T
Y
Bob Diamond spent
16 years at Barclays
Diamond poses with his daughter Nellie
(above), who took to Twitter to defend
him. Below left: Diamond is a keen golfer
and (right with John Terry) Chelsea fan
ROBERT E Diamond Junior isnt
going down without a fight. The bel-
ligerent Barclays chief executive,
once described as the unacceptable
face of banking, has had a career of
hard-won deals, boardroom battles
and bruising run-ins with regulators
to prepare him for todays parliamen-
tary showdown.
Massachusetts-born Diamond
spent 16 years at Barclays, turning
the investment bank into a global
contender before taking the reins of
the group 18 months ago.
He is a trader at heart, having led
fixed income trading at Morgan
Stanley and spent 18 years based in
Tokyo as head of global fixed income
and foreign exchange at Credit
Suisse First Boston.
His first job was as a business lec-
turer at the University of
Connecticut, where he earned his
MBA a post he used in a BBC lecture
in November 2011 to paint himself as
a contrite former teacher, keen for
his bank to make amends as a corpo-
rate citizen.
The bold banker who
led Barclays shake-up
But he is better remembered for his
comments a few months prior, gain-
ing notoriety as the defiant face of
the industry by telling MPs who criti-
cised his bonuses: There was a peri-
od of remorse and apology for banks
and I think that period needs to be
over.
The 60-year-old Chelsea fan has
spent most of his time at the
Barclays helm batting away com-
plaints from politicians and
shareholders, who have been
irritated that the highest-paid
boss in the FTSE 100 has failed
to buoy the banks share price
alongside his own pay packet.
Since he took over from
John Varley in
January 2011 (hav-
ing lost out on the
top job to him in
2003), Barclays
shares have slid
from 272p to
167p.
But his combat-
ive manner
aided the firm
in its attempts
to conquer the
investment bank-
ing world. When
he moved to
Barclays in 1996,
Diamond joined
a fledgling investment banking arm
that was struggling to emerge from
the carcass of the BZW break-up.
He took over the division in 2002,
and in a few years, after a hiring spree
and reorganisation, was generating
the bulk of Barclays profits.
So strong was the business that
when Lehman Brothers was in its
death throes in 2008, Diamond
was bold enough to pay $1.75bn
to take on the firms core busi-
nesses, after a febrile few
weeks of horse-trading with
the US authorities.
Diamond is said to have
played God Save The Queen
on the New York firms trad-
ing floor when the
acquisition was
announced.
His feelings about
a different London
institution, how
his bank manipu-
lated it, and who
else might have
known about it,
will be laid bare
in front of the
Treasury select
committee today.
Diamond battled to
revamp bank, writes
Marion Dakers
WEDNESDAY 4 JULY 2012
3
LIBOR SCANDAL
cityam.com
BARCLAYS newly appointed chief
operating officer Jerry del Missier
followed his chief executive Bob
Diamond and resigned from the
bank yesterday in the wake of the
interest rate-rigging scandal.
Barclays said he will leave with
immediate effect.
He is thought to be the executive
mentioned by the FSA as having
misunderstood the Bank of
Englands thoughts on Libor, which
may have led to Barclays fixing
their submissions.
Del Missier has for years been a
key lieutenant of Diamond, helping
The Barclays number three who
got the wrong idea about Libor
BY CITY A.M. REPORTER him build up the Barclays Capital
investment bank, and was
appointed COO last month.
I have every confidence that the
board and executive management
of Barclays will be successful in
executing their plans, and I wish
them the best of luck in doing so,
del Missier said in a statement.
Del Missier joined Barclays in
1997 as head of derivatives, moving
up the ranks to become co-
president of the Barclays Capital
investment banking arm in 2005.
The Canadian has also left his
post as chairman of the US
industry body the Securities
Industry and Financial Markets.
Jerry Del Missier has left Barclays in the wake of the furore over interest rate fixing
RUNNERS AND RIDERS BARCLAYS CHIEF EXECUTIVE
Antony
Jenkins
Even given the
huge damage
Barclays
reputation has
sustained, the
frontrunner is an
insider. Jenkins is
head of retail and
business banking
and considered a safe pair of hands
Paddy Power puts him at evens.
Rich
Ricci
Another
prominent
internal candidate
is the banks joint
head of corporate
and investment
banking the role
previously held by
ousted chief Bob
Diamond. Paddy Power puts his
prospects at 8/1.
David
Roberts
Roberts, 49, was
with Barclays for
23 years before
he left in 2006,
moving through
the second
largest Austrian
retail bank to
Lloyds, where he
is currently deputy chairman. Paddy
Power offers 14/1 on his candidacy.
Gary
Hoffman
Paddy Power had
Hoffman at 8/1, but
his odds have been
reportedly driven
down by a huge
volume of bets.
Hoffman became
chief executive of
Northern Rock in
2008 and claims responsibility for its
rescue, stabilisation and restructuring.
Bill
Winters
Winters, former
joint chief of the
European arm of
JP Morgan, is a
frontrunner with
odds at 4/1. As an
outsider and a
framer of the new
Vickers banking
regime, he may be well placed to rebuild
Barclays tarnished image.
Christopher
Lucas
Currently finance
director at the
bank, Paddy
Power has Lucas
as the second
favourite, with
odds for 3/1.
Previously he was
UK head of
financial services, and global head of
banking at PricewaterhouseCoopers.
WEDNESDAY 4 JULY 2012
4
LIBOR SCANDAL
cityam.com
Now Scotland
probes firms
over rate fixing
BY MARION DAKERS
SCOTTISH prosecutors yesterday
went public with their own
investigation into the banking
sector.
The Crown Office confirmed
that an ongoing probe into the
financial sector in Scotland will
be extended to cover Libor-rigging
as a result of recent
developments.
It said the probe had been
underway for some time, but
decided to reveal its investigation
given the degree of public
concern about the banking
industry.
But the details remain sketchy,
with the office tight-lipped about
the names or number of banks
under scrutiny and the full remit
of the probe, saying in a statement
that as the investigation is
ongoing, it would not be
appropriate to comment further.
The Serious and Organised
Crime Division is leading the
investigation, said the Crown
Office, the body responsible for
deciding whether to bring
criminal prosecutions in Scotland.
Royal Bank of Scotland,
headquartered in Edinburgh, is
one of several institutions being
looked at by UK authorities in the
ongoing efforts to uncover the full
extent of Libor-fixing in recent
years.
Agius will stay until a new
chief executive is hired
L
AST week the NatWest
computer glitch; this week
another bank, another crisis
and more damage to a
brand.
The Libor scandal has hit
Barclays brand hard and fast and
while the impact on customers
may be less obvious than with
NatWests difficulties, the trajec-
tory of the crisis on brand percep-
tion was very similar.
Lets look at daily buzz scores
on YouGovs BrandIndex first.
Both firms were moving along at
just below zero (heard positive
minus heard negative) and then
dived NatWest to -63 on 25 June,
Barclays to -59 on Monday.
Hearing bad news is one thing
but does it also impact on brand
perception? Index scores (a com-
posite of six key image measures)
get at that and show a similar
pattern.
Here, the two brands dont fall
as far but hit lows of -22 for
NatWest and -24 for Barclays.
Declines in perception were
inevitable but these scores
should be put into context. At the
height of the oil spill disaster in
2010 the lowest one day scores
that BP had were -78 for buzz and
-19 for index, so the noise around
the oil firms crisis was worse.
But BP never got as low on
brand perception (in the UK) as
either of the two banks have.
Much ground to recover, there-
fore, and the long term impact
on them will be determined to a
large extent by how quickly they
do recover.
The brand perception story will
develop quickly and Barclays will
hope that Bob Diamonds resig-
nation will be the cleansing they
need (our social media research
reveals that news had reached 41
per cent of UK Twitter feeds by
midday yesterday).
One interesting final point. It
appears the sector as a whole is
being tarred by association; HSBC
and Lloyds have seen their index
scores fall at the same time.
AS BARCLAYS top management con-
tinued to fall like dominoes yesterday,
the bank was forced to turn to outgo-
ing chairman Marcus Agius to lead its
hunt for a successor to Bob Diamond.
Agius, the first scalp to be claimed
as a result of the Libor scandal,
announced his intention to
leave the bank on Monday
morning.
But just 24 hours later he
was back in the spotlight
as full-time chairman,
leading the Barclays execu-
tive committee and heading
up the search for a new chief
executive to commence
immediately.
The appointment
Rudderless ship
turns to Agius
in hunt for CEO
BY ELIZABETH FOURNIER
gives Agius de-facto control of the
bank after the departure of both
Diamond and operations head Jerry
Del Missier yesterday.
With a tough task ahead of him to
steer the bank through the remaining
days of the scandal, it will be small
comfort to Agius that his appearance
in front of the Treasury select com-
mittee originally schedule for
tomorrow has been delayed until
next week.
Meanwhile the day-old search
for a replacement for Agius him-
self goes on. The recruitment
process is being run concurrently
by non-executive board member Sir
John Sunderland.
WEDNESDAY 4 JULY 2012
5
LIBOR SCANDAL
cityam.com
THEFORUM
cityam.com/forum
L L
JOIN THE DEBATE PAGES 16-17
Buzz
2Jul 27Jun 22Jun 17Jun 12Jun 7Jun 2Jun
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0
NatWest
Barclays
Index Chart
1 Jun 19Jun 2Jul
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BRAND
INDEX
STEPHAN SHAKESPEARE
Hit to banks reputation is instant and damning
SIR Stelios Haji-Ioannou yesterday
escalated his efforts to oust Sir
Mike Rake as EasyJet chairman by
filing papers for an extraordinary
general meeting of shareholders.
Everyone can see Mike Rakes
deep conflicts of interest and
entrenched positions in the
disgraced City establishment, he
BY LAUREN DAVIDSON
claimed, questioning the former
Barclays bosss ability to run a
public company after failing to
prevent the interest rate fiasco.
The EasyJet founder said: We
cant have a chairman who is going
to be tied up in one of the largest
corporate scandals in recent
history.
The firm said it was disappointed
by Stelioss actions.
Stelios boosts bid to oust Rake
WAS BOB DIAMOND RIGHT TO
QUIT?Interviews by Polly Young and Jamie Sutherland
I think its great to take the media heat off the
banks, but its unfortunate because Diamond
was a great chief executive of the bank. Hes the fall guy of
an unfortunate story its a shame but it had to be done.
These views are those of the individuals above andnot necessarily those of their company
ANDREAS KLEIN
MIZUHO

It was a very honourable thing to do in some

respects pressure had been mounting on him
over the past 24 hours and I think the public perception
was they expected to see him move on.
JAMES OCONNELL
ETIS LIMITED
I guess he had to go. I think it was quite obvious-
ly where the buck stops the chairmans resig-
nation was probably a smoke screen. They both had to go:
there was so much political pressure, there was no choice.
TIM CHISNALL
TC CONSULTING

CITYVIEWS
G
E
T
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WEDNESDAY 4 JULY 2012
6
LIBOR SCANDAL
cityam.com
BANKING scandals such as the
Libor fixing case have strengthened
the case for imposing a Tobin tax
on the financial sector, the
president of the European
Commission said yesterday.
Jose Manuel Barroso praised the
EUs moves towards tougher
regulation of finance.
Whilst the proposal for a
financial transaction tax has
unfortunately not met with
unanimous support from member
states, I would like to welcome the
decision to start negotiations under
enhanced cooperation for all
Member States that will wish to
join the initiative, Barroso said.
We have seen once again in
recent months and weeks ... that
practices that have fuelled the
financial crisis are not yet
eradicated from the sector, he
added, hitting out at reckless
trading and market manipulation.
It is time that these practices
stop once and for all. And it is time
that a sector that owes so much to
the taxpayers
support accepts to
hand back a fair
share to society.
Barroso: Bank
sins show need
for a Tobin tax
BY JULIAN HARRIS
RECKLESS bankers who take excessive
risks could end up in jail under plans
unveiled by the Treasury last night.
Following the Financial Services
Authority report that revealed wide-
spread management failures in the
run-up to the collapse of RBS, the gov-
ernment also wants to make it harder
for the bosses of failed banks to take
up roles at other institutions.
Announcing the proposals, the
Treasury said that the events of
recent days have further high-
lighted that the culture of bank-
ing is badly broken.
The government hopes
the consultation will be
complete by the end of
September, so the pro-
posals can join the
banking reform bill
being put before par-
liament next January.
These proposals are
some of the most ambi-
tious in Europe and will
make it easier for the
regulator to stop direc-
Treasury wants
to jail reckless
bank directors
BY TIM WALLACE
tors of failed banks from taking up
similar positions in the future, said
Treasury minister Mark Hoban.
Under the new plans, directors and
senior management could become
subject to criminal sanctions as a
result of negligence, incompetence,
recklessness, or simply being in posi-
tion when a bank fails.
But the consultation acknowledges
there are potential problems with the
plan for example, directors in posi-
tion when the bank collapses may
not be responsible for its failure, as
they could be trying to repair dam-
age done by earlier managers.
The government also wants to
make it tougher for directors
of failed banks to take roles
at other institutions.
Currently the onus is on
regulators to explain if a
candidate is unsuitable in
future, it may be the direc-
tor who has to convince reg-
ulators why they should be
allowed to take the job.
THE FINANCIAL Services
Authority (FSA) is reviewing how
wholesale markets are supervised
following the interest rate-setting
scandal, its chairman Adair
Turner said yesterday.
There are no free lunches, and
shoddy wholesale practice is not a
victimless act, even in those cases
where it is not defined as a
crime, Turner told the
watchdogs final annual meeting
before being dismantled.
The FSA was criticised for not
bringing criminal charges against
Barclays or its traders who rigged
City regulator to review market
supervision after Libor scandal
BY HARRY BANKS the London Interbank Offered
Rate (Libor) and is expected to be
given new powers.
The FSA will publish the
outcome of its review in the
autumn.
Turner said the Libor scandal is
a huge blow to the reputation of
the banking industry.
The cynical greed of traders
asking their colleagues to falsify
their Libor submissions so that
they could make bigger profits -
has justifiably shocked and
angered people, in particular
when we are facing hard
economic times provoked by the
financial crisis, Turner said.
Lord Adair Turner is chairman of the Financial Services Authority
Minister Mark Hoban wants
rogue bankers prosecuted
EU chief Jose
Manuel Barroso
TORY MEPS
SLAMMED: Page 12
L L
BOTTOM
LINE
MARC SIDWELL
BlackRock Inc
3Jul 27Jun 29Jun 2Jul
164
168
172
$
173.84
3Jul
28Jun
WEDNESDAY 4 JULY 2012
8
NEWS
cityam.com
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PRIVATE equity group HgCapital
has sold employment consultancy
SHL to larger rival Corporate
Executive Board for $660m
(420.6m), having quadrupled the
value of the firm within six years.
HgCapital, which bought the
firm for 100m in 2006, has sold
out from SHL after helping to
almost double the firms revenues
and treble its earnings. HgCapital
merged the UK firm with US rival
PreVisor last year, bringing in VSS
as a fellow investor. US INVESTMENT manager BlackRock
is buying Swiss Res European private
equity arm, marking the second deal
for a private equity fund manager in
as many days as sellers contend with a
new regulatory landscape and tough
trading.
Swiss Res deal to sell its $7.5bn
(4.8bn) private equity and infrastruc-
ture fund of funds business follows
hot on the heels of HarbourVest
Partners agreement to buy
Amsterdam-listed private equity fund
of funds business Conversus Capital.
Both Swiss Res private equity busi-
ness and Conversus invest in a portfo-
lio of private equity funds from firms
like Blackstone, CVC and KKR, which
in turn plough that capital into com-
panies via leveraged buyouts and
minority investments.
BlackRock said the terms of the all-
cash deal were not being disclosed. It
expects the deal to be completed by
the end of the third quarter and be at
best modestly accretive to its 2012
earnings. The deal will see Swiss Re
Private Equity Partners (SRPEP), which
BlackRock buys
SwissRe private
equity business
BY HARRY BANKS
had $7.5bn in total commitments at 31
May, outsource the management of its
investments to BlackRock Private
Equity Partners, an arm of its
Alternative Investors division, which
had $110.4bn in assets at end March.
Swiss Re said in a separate statement
that it would continue to hold the
underlying investments in SRPEP and
plans to make further private equity
investments mainly through this plat-
form.
BRPEP head Russell Steenberg will
lead the combined unit, while SRPEP
chief executive Christian Hinze will
join BlackRock as deputy head of the
combined business.
HELLMAN & Friedman will take a
majority stake in energy analysis
group Wood Mackenzie in a deal
that values the company at 1.1bn
including debt, marking a relatively
quick turnaround for seller
Charterhouse in a sluggish market.
The deal comes just three years
after Charterhouse bought the
firm which has over the years been
chaired by both Sir George
Mathewson and Gerry Grimstone
in a 553m buyout. Charterhouse
will retain a 13 per cent stake in
Wood Mac. Management and staff,
led by chief executive Stephen
Halliday will hold a 24 per cent.
I
TS set to be an explosive Fourth
of July. Quite apart from the
fireworks at the Treasury select
committee, today in Geneva the
atom-smashers at Cern will
announce signs of the elusive Higgs
boson, a key component to
explaining the property of mass in
the universe. Winton Capital was
said to be recruiting in Geneva
recently. Perhaps with the Higgs
found, a few more Swiss physicists
can down tools and come help
crunch the Citys numbers.
Meanwhile, BlackRock
announced in Zurich yesterday that
it will be taking on a little more
mass from Swiss Re, when it gains
its European private equity and
infrastructure fund of funds
franchise Swiss Re Private Equity
Swiss split particles while funds join forces
Partners (SRPEP). Integrating with
BlackRocks existing unit BlackRock
Private Equity Partners (BRPEP), this
will double client commitments to
$15bn (9.6bn). Swiss Re will retain
its underlying investments. Neither
side sees smashing profits, but in a
marketplace made nervous by the
approach of new regulatory
burdens, the reasons for
consolidation and outsourcing are
easy to discover.
Wood Mac reviews North Sea oilfields
Wood Mac stake fetches 1.1bn
PRIVATE EQUITY TALENT
The acquisition by the Corporate
Executive Board (CEB) of HgCapital-
owned SHL aims to create the
worlds foremost source of insight
on the measurement and
management of talent for business
and government. Given the issues
both sides have to grapple with, one
can only wish that project well.
HgCapitals investors have in any
case managed a 26 per cent return
over the six years since it bought the
talent measurement specialist. SHL
has benefited too, with revenue up
more than 80 per cent since the
private equity firm took the helm.
No psychometric tests needed to
identify talent at work in this case.
Marc Sidwell is City A.M.s managing
editor.
HGCapital sells
SHL for $660m
BY MARION DAKERS
BY CITY A.M. REPORTER
G
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MANCHESTER United last night filed
documents for an initial public offer-
ing (IPO) of shares to be listed on the
New York Stock Exchange.
The size of the offering has initially
been listed at $100m yet analysts
expect that the figure could change
significantly, with the price and quan-
tity of shares yet to be decided.
The club also revealed that it will
become part of a holding company
based in the Cayman Islands, a move
likely to provoke more anger among
fans disgruntled with the controver-
sial Glazer family owners.
Documents filed with the Securities
and Exchange Commission (SEC) in
the US show the company is issu-
ing shares to help cope with
its 423.3m debts.
Underwriting the IPO will
be Jefferies, Credit Suisse,
JP Morgan, Deutsche Bank
Man Utd unveil
IPO in New York
to pay off debts
and Bank of America Merrill Lynch.
Our indebtedness could aversely
affect our health and competitive posi-
tion, the filing states, adding: We
intend to use all of our net proceeds
from this offering to reduce our indebt-
edness.
New Class A shares will be issued by
the IPO, which will only carry one vote
per share. The remaining Class B
shares, owned entirely by the Glazers,
will carry ten votes per share.
Duncan Drasdo of the
Manchester United
Supporters Trust told City
A.M. that without fair vot-
ing rights, the share issue
is just a debt instrument
that wont allow the
Glazers to be
held to account.
JP Morgan in US energy probe
n US energy regulators have
subpoenaed JP Morgan Chase twice in
the past three months as part of a probe
into whether the bank manipulated
power markets. Authorities have asked
the firm to produce emails from 2010 and
2011 as part of a probe into JP Morgan
bidding practices.
Kinetic boss returns to outdoor ads
n Former Kinetic boss Eric Newnham
has returned to the out-of-home
advertising business by investing in
specialist agency Talon Outdoor.
Newnham, who sold Kinetic to WPP in
2010 and left the firm a year later, said he
was keen to work with Talon to use new
technologies in outdoor ads.
KNIGHT VINKE TURNS UP HEAT ON GLENCORE
Activist fund Knight
Vinke, a top-20
shareholder in miner
Xstrata, yesterday
backed a surprise call
from fellow investor
Qatar for better terms
in a takeover offer
from commodities
trader Glencore, led by
Ivan Glasenberg
(pictured).Knight
Vinke yesterday said
the deal does not
represent fair value for
Xstrata on current
terms and also
objected to the fact no
premium is being paid
for a change of control.
Wayne Rooneys
club listed debts
of 423.3m
CLIFFORD CHANCE, the UKs
biggest law firm by revenues,
yesterday raised the bar for its
magic circle competitors as it
announced a seven per cent rise in
turnover.
Revenues at the firm were
1,303m in the year to 30 April, up
from 1,219m in the previous 12
months. Profits per equity partner
also grew by seven per cent, rising
to 1.1m having hit the million
mark in 2011.
Though Clifford Chance
Asia Pacific growth helps give
Clifford Chance bigger profits
BY ELIZABETH FOURNIER
registered growth across all its
regions, the firms offices in Asia
Pacific delivered the strongest
performance, raking in 185m in
revenues a 28 per cent rise.
The region now accounts for 14
per cent of global revenues, with
the firm deriving more than two-
thirds of its overall revenue from
outside of its London headquarters.
Managing partner David Childs
described Clifford Chances UK
performance as good in a difficult
market, as home-grown revenue
edged up by three per cent to
443m.
POLICE raided the home and
offices of former French President
Nicolas Sarkozy yesterday as part
of a judicial inquiry into financial
relations between his political
camp and LOreal heiress Liliane
Bettencourt.
Sarkozys lawyer said the raids, a
day after his client had left for
Canada on holiday, would show
nothing and that he had already
supplied info to investigators that
debunked suspicions of secret
meetings with Bettencourt.
Police search
Sarkos home
BY CITY A.M. REPORTER
ICAP, the worlds largest inter-dealer
broker, has unveiled a jobs tracker,
in the latest example of brokerages
aiming to offset weak trading with
new services.
Icap said yesterday it had
launched its UK Labour Market
Indices, offering investors, traders
and researchers guidance on
employment, vacancies and salaries.
The broker said the new service
will be valuable for clients because it
will provide them with data on
employment levels ahead of official
figures.
Icap launches
jobs monitor
BY CITY A.M. REPORTER
WEDNESDAY 4 JULY 2012
9
NEWS
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WESTMINSTER
BUSINESS
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IN BRIEF
BY JULIAN HARRIS
The new
jobs website
for London
professionals
C
I
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Y
A
M
C
A
R
E
E
R
S
.
c
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H
EAVEN knows, weve all been
there before, but imagine Ian
Gordons reaction at
breakfast time yesterday
morning as he digested the news
that Bob Diamond had resigned.
Not 24 hours earlier, Investec ana-
lyst Gordon had published a
research note entitled: Back Bob!
We urge investors to back Bob,
and take full advantage of Barclays
recent share price underperfor-
mance. Bob is going nowhere,
Backing Bob backfires badly
Gordon opined.
Yesterdays note took on a different
complexion following news of
Diamonds departure from the
bank, with Gordon blaming Mob
Rule! (sic) for the state of affairs.
We are disappointed by Bobs res-
ignation this morning. That said, it
is undeniable that the unrelenting
political/media campaign had cen-
tred on Bob personally, and this was
leading to a persistent misrepresen-
Got A Story? Email
thecapitalist@cityam.com
10
cityam.com
cityam.com/the-capitalist
THECAPITALIST
It must be mind-boggingly hard
work organising the affairs of the
Treasury Select Committee, which
today takes evidence from the man of
the moment, former Barclays chief
executive Bob Diamond.
What with the need to arrange extra
facilities to cater for heavy demand
from the media and the public, the
irrepressible aide to the committee
James Abbott emailed yesterday with a
date of 14 July for the Diamond
appearance. This was immediately
changed to the correct date, 4 July.
Then tomorrows visit of Marcus Agius
had to be postponed.
WEDNESDAY 4 JULY 2012
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C
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A
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tation of Barclays position in rela-
tion to the multi-bank Libor investi-
gations, and a clear distraction from
the execution of Barclays strategic
repositioning, Gordon thundered in
yesterdays note.
Of course I feel a bit silly. It was
the wrong decision but now Barclays
needs to move on and make Libor a
multi-bank problem.
The situation is not pretty and the
biggest risk now is inertia, Gordon
said yesterday.
Investec has still stuck to its advice
to clients that Barclays shares are
undervalued.
Back Bob!
We urge investors to back Bob, and take full advantage of Barclays recent
share price underperformance. Bob is going nowhere. But we also expect (and
demand) more radical action to address a bloated Barcap cost base to get
closer to the Groups unrealistic RoE aspirations. This would help to underpin
underlying operational performance. Meanwhile, as "unquantifiable" litigation
risks are progressively seen to be a multi-bank issue (rather than
Barclays-specific), expect Barclays sharp underperformance to reverse.
Bob Diamond will appear today
G
E
T
T
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THE SQUEEZE on consumer
finances eased again in June, retail
industry figures showed today,
with shop price inflation falling to
its lowest level in two and a half
years.
Inflation dropped to 1.1 per cent
in the year to June from 1.4 per
cent in May, according to the
British Retail Consortium (BRC) a
slowdown that analysts hope will
give a boost to consumer spending.
Food price inflation is near a
two-year low at 3.5 per cent in the
year to June, down from 4.3 per
cent in the year to May.
Meanwhile the price of non-food
goods fell 0.3 per cent on last June
the fifth consecutive monthly
decline, as retailers slash prices to
counter sluggish demand.
That deflation was driven by a
4.8 per cent fall in the price of
clothing and footwear on the year,
as well as a 3.1 per cent drop in
electricals prices and a 0.2 per cent
drop in books, stationery and home
entertainment.
DIY, gardening and hardware
price inflation fell to 1.6 per cent in
the year to June a three-year low.
With real disposable incomes
still dropping, lets hope theres
more downward pressure to come
from past falls in commodity prices
working through to inflation, said
the BRCs Stephen Robertson.
Price pressures
ease as food
inflation slows
BY JAMIE SUTHERLAND
CONSTRUCTION sector output fell in
June, influential survey data showed
yesterday, raising further fears that
the UK economy will remain in reces-
sion for another quarter.
Markits purchasing managers
index (PMI) fell to 48.2 in June from
54.4 in May below the crucial no
change mark of 50.
That represents the fastest contrac-
tion in output in two-and-a-half
years, and comes after official data
showed a 4.9 per cent fall in con-
struction output.
Civil engineering activity fell most
rapidly, with the index dropping
from 52.8 to 44.7, while housing
activity also fell to a reading of 46.5,
having recorded very slow growth at
50.9 in May.
Commercial construction expand-
ed slightly, with an index score of
50.7, down from 56.5 in May.
The picture may worsen in coming
months, the survey showed. New
orders fell for the first time since
September 2011, with the index
dropping from 53.9 to 47.9, while
Recession blow
as construction
activity drops
BY TIM WALLACE
companies assessments of future
output dropped to an eight-month
low.
The weak outlook is also starting to
impact on jobs the employment
index fell from growth of 52.2 in May
to contraction at 48.9 in June.
The anomaly of the double bank
holiday at the start of the month will
have had some negative impact,
explained David Noble, chief execu-
tive at the Chartered Institute of
Purchasing and Supply.
But the underlying sluggishness
throughout the industry could point
towards a much softer period head-
ing into the third quarter.
L
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Construction output fell suddenly in June
Jun00 Jun12 Jun10 Jun08 Jun06 Jun04 Jun02
70
55
60
65
50
45
40
35
30
25
50 = no change
LENDING to businesses dropped in
May, according to banking industry
data published by the Bank of
England yesterday.
Equity fund-raising also dipped,
as did commercial paper issuance.
Consumers were also hit
although credit rose slightly
overall, mortgage approvals
remained low and the overall
market is sluggish.
Net business lending fell 1.7bn
in May, reversing a 0.4bn rise in
April and taking the quarterly fall
to 2.9 per cent. On the year, lending
is down 3.1 per cent.
Businesses lose out as bank
lending slumps even further
BY TIM WALLACE Consumer credit edged up
0.7bn in the month, building on a
0.4bn rise in April, taking the
annual net increase to 2.4 per cent.
Meanwhile mortgage approvals
fell to 51,098 in May from a 25-
month high of 58,572 in January.
Housing market activity is
persistently low compared to long-
term norms and while it may
eventually be lifted by more
mortgages being granted at decent
interest rates under the funding
for lending scheme announced by
the Bank of England, this is
unlikely to be a major factor in the
near term, said IHS Global
Insights Howard Archer.
WEDNESDAY 4 JULY 2012
11
NEWS
cityam.com
Chancellor George Osborne is under pressure to get Britains banks to lend more
G
E
T
T
Y
TAX rises may be on the way in
Spain and France, say government
ministers, who are under pressure to
make budget targets.
The French Prime Minister Jean-
Marc Ayrault yesterday promised a
75 per cent tax band on earnings
above 1m, but confirmed that the
government would reverse a sales
tax increase due to begin in October.
This may not be enough to fill the
holes in their budget estimated to be
more than 6bn this year, and 33bn
in 2013.
But the PM has positioned himself
against austerity and for investment,
as growth forecasts were cut to a
measly 0.3 per cent for 2012 and just
1.2 per cent for 2013.
And Spain may hike consumption,
energy and property taxes to cut its
annual shortfall to 5.8 per cent of
GDP, from 8.9 per cent in 2011.
This came after Finland and the
Netherlands expressed their sharp
opposition to the European stability
Eurozone hikes
taxes to fill big
budget holes
BY BEN SOUTHWOOD
mechanism, which may lend up to
500bn to ailing Eurozone nations.
Spain brushed off these threats by
pointing out that the usual unanimi-
ty may not be required, There is an
emergency procedure clause allow-
ing 85 per cent majority rule.
But Italy is in line to meet its budg-
et targets, according to estimates
made by Barclays yesterday.
Seasonal adjustments put the budg-
et deficit at just one per cent of GDP
excluding the costs of servicing
Italys mammoth debt, the country
exhibited a surplus of over three per
cent in April, the bank said.
IN BRIEF
US factory orders and car sales up
while retail sales growth slows
n American factory orders jumped
above expectations in May, according to
data released by the Commerce
Department yesterday. New orders for
manufactured goods climbed 0.7 per
cent, well above the consensus forecast
of 0.2 per cent. This came as car sales
climbed to an annualised rate of 14.5m,
based on generous incentives and a
slide in petrol prices. Retail sales were
up 1.7 per cent on the same week last
year, which is the lowest increase in
almost 15 months.
Producer price deflation in euro
area shows slumping production
n Eurozone industrial producer prices
edged down compared to April,
though they were up on May last year.
Eurostat data shows a 0.5 per cent fall
in the producer price index this month
for the Eurozone, with a 0.7 per cent
fall for the entire EU. In April prices
had inched up 0.1 per cent in the
Eurozone and stayed completely flat in
the EU as a whole. The biggest falls
were in the UK, Denmark, Greece and
France, while Cyprus registered a 2.1
per cent rise.
WEDNESDAY 4 JULY 2012
12
NEWS
cityam.com
Visit our space at ncp.co.uk
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Cameron backs banking union
as Barroso hits out at Tory MEPs
PRIME Minister David Cameron
yesterday gave his support for
further integration in the
Eurozone, while elsewhere on the
continent his partys MEPs were
subjected to a stinging attack from
European Commission president
Jose Manuel Barroso.
A banking union and closer fiscal
ties among euro area states would
not necessarily affect the UKs
position, Cameron told the House
of Commons liaison committee.
BY JULIAN HARRIS If the 17 countries of the
Eurozone bring about a banking
union for themselves which I
frankly think they need to do in a
single currency if we can get
proper safeguards in place, then
that wouldnt be a fundamental
change for us, he said.
Cameron told the committee that
Eurozone states face very difficult
decisions on giving up sovereignty,
yet appears supportive of a closer
union within the single currency
a move he has recently described as
following remorseless logic.
Yet many of Camerons
Conservative Party MEPs remain
sceptical of the European project,
and yesterday became the target of
a bitter attack in Strasbourg.
You seem to take a delight in
highlighting any differences in the
Eurozone which is in stark contrast
with the position of your own party
leader, Commission chief Barroso
said, adding that while many of the
MEPs are calling for countries to
leave the single currency, their
party leader last week said Greece
must remain in the bloc.
THE International Monetary Fund (IMF) yesterday cut its US growth forecast to two per
cent expansion this year (from 2.1 per cent) and 2.25 per cent next year (from 2.4 per
cent). Its head, Christine Lagarde, warned that another fiscal cliff may sap the recovery.
IMF WARNS OF TEPID AMERICAN RECOVERY
Decits and debts
Italy France Spain
100 %
80
60
40
20
0
Govt. DebtasapercentageofGPDQ42011
2011decits
IN BRIEF
WPP expands Brazilian presence
nWPP-owned subsidiary Ogilvy &
Mather yesterday unveiled the
purchase of a majority stake in Foster,
a Brazilian digital agency. Ogilvy
acquired 70 per cent of the 19 year old
company, whose clients include Metro,
Danone and Goodyear. Foster, which
generated revenues of R$5m (1.6m)
last year, will contribute to WPPs
Brazil-based revenues of $800m
(510m) and staff of 5,000.
Anites profits jump 75 per cent
nSoftware company Anite boosted its
dividend yesterday after an excep-
tional year in which pre-tax profits
climbed 75 per cent to 28m. The final
dividend was increased by 53 per cent
as revenues jumped by almost a third
to 122.5m and earnings per share
almost doubled to 6.5p. The London-
listed company said all three of its busi-
ness network testing, travel industry
software and handset testing are
heading for growth, with the latter best
placed for high growth in the immedi-
ate future.
Real good food gets sugar rush
n Sugar producer the Real Good Food
Company said yesterday that a robust
performance from Renshaw and Garrett
Ingredients helped lift earnings before
interest, tax, depreciation and amortisa-
tion by 62 per cent to 9.1m in the year
to December. The firm, which is moving
its reference date from 31 December to
31 March, posted sales of 305.5m for
the 15 months to 31 March.
G
E
T
T
Y
N BROWN announced yesterday that
both its long-standing chairman, Lord
Alliance of Manchester and chief exec-
utive Alan White will be retiring from
the catalogue and online shopping
group.
Lord Alliance, the Liberal Democrat
peer and the founder of textile com-
pany Coats, said the retailer had
come a long way since he bought the
Manchester-based mail order firm JD
Williams in 1963. More than half of
the groups sales are now online.
The company is in great shape, and
will benefit from an injection of new
blood and new ideas, he said.
Lord Alliance will be replaced by for-
mer Tesco director Andrew Higginson
in September, but he will stay on as a
non-executive director.
Higginson will be in charge of look-
ing for a replacement for White, who
after 25 years at the group and 10 as
chief executive said he planned to
leave in the second half of next year.
The shake-up came as the retailer,
Chairman and
chief executive
of N Brown exit
BY KASMIRA JEFFORD
whose brands including FigLeaves,
Simply Be, Jacamo, Marisota and High
and Mighty, reported that like-for-like
sales rose 1.9 per cent in the 17 weeks
to 30 June.
Although that was ahead of growth
of 0.6 per cent in the eight weeks to 28
April the mix of sales meant gross
margin was one per cent lower than
the firm had anticipated.
White said the wet weather had led
to disappointing sales of ladieswear, its
highest margin category, while
menswear, lingerie and homeware all
showed growth in the period.
Vodafone gets green
light for CWW deal
VODAFONE yesterday won approval
from the European Commission for
its 1bn takeover of Cable &
Wireless Worldwide.
Five weeks after the deal was
submitted to Brussels for approval,
the Commission ruled that the
merger of the companies would not
lead to any antitrust issues.
The Commission concluded that
the transaction would raise no
competition concerns, as the
parties activities are largely
complementary. CWWs main
activity is related to fixed telecoms,
whereas Vodafone is mainly active
BY LAUREN DAVIDSON
in mobile telecoms, the watchdog
said in a statement.
Elaborating on its decision to
approve the deal, the Commission
pointed to the many other
competitors which offer similar
services and the ability of regulators
to intervene and constrain the
merged entity if necessary.
The Commission therefore
concluded that the transaction
would not significantly impede
effective competition in the
European Economic Area or any
substantial part of it.
The 1.04bn deal, unveiled on 23
April, will make Vodafone the UKs
second largest telecoms operator.
N Brown Group PLC
3Jul 27Jun 28Jun 29Jun 2Jul
245
250
255
260
265
270 p
259.00
3Jul
The result was supported by planning gains on residential land, as
achieved in prior years. With the shares still trading on a signicant 33 per cent
prospective NAV discount, despite a long series of positive newsow, we
reiterate our buy recommendation on expectations of outperformance.
ANALYST VIEWS

An encouraging set of results with particularly strong progress in the

development programme and the residential landbank. The scale of value-adding
opportunities continues to impress... We think St Modwen looks attractive
given the above sector-average net asset value growth prospects.

St Modwens rst half results show strong progress against a difcult

market backdrop...This is tribute to the groups portfolio approach, added value
activities and the strength of residential land where signicant disposals
have been made at or above book.

WHAT DO YOU MAKE OF

ST MODWENS
PERFORMANCE? Interviews by Kasmira Jefford
KEITH CRAWFORD PEEL HUNT

CONOR FINN LIBERUM CAPITAL

CHRIS MILLINGTON NUMIS

A BOHEMIAN brewer located in
the original town of Budweiser
beer yesterday won a case to be
allowed to continue using the
brand name in the UK.
The Czech company, Budejovicky
Budvar, has been fighting off a
legal challenge by global brewing
giant Anheuser-Busch InBev, which
produces the more well-known
Budweiser a beer that originates
in the US.
AB-InBev had sought to
Czech brewer Budvar victorious
in battle over Budweiser name
BY JULIAN HARRIS
invalidate Budvars use of the
name, yet the Court of Appeal
yesterday ruled in Budvars favour.
Both companies will be allowed to
continue using the name.
The judgment...reflects the
reality of the situation that both
brands co-exist and have done so
for many years, said the firms
lawyer Mark Blair, of Marks &
Clerk Solicitors.
AB-Inbev said it was
disappointed with the verdict,
but that it would not affect sales of
its own Budweiser beer.
BRITISH drinks can maker Rexam
yesterday said it had agreed to sell
its underperforming personal
care business in two parts for
$709m (451.9m) in cash and
return about 370m of the
proceeds to investors.
Private equity firm Sun Capital
Partners had agreed to buy the
cosmetics, toiletries and
household care division for
$459m, Rexam said, while Silgan
Holdings would acquire its high-
barrier food packaging business
for $250m.
Rexam put the businesses,
which employ 7,000 people, on
the block in February because
they had been hit by rising costs
Rexam cans personal care arm
and returns cash to investors
BY CITY A.M. REPORTER
and lower volumes. The unit had
sales of 502m in 2011, and
underlying operating profits of
38m before costs.
The company said it would
restructure as a result of the sale
at an exceptional cost of 40m, of
which 25m would be cash costs.
It also expects to book a $200m
impairment charge linked to the
sale of the cosmetics business, the
firm said in a statement
yesterday.
Barclays and Rothschild are
advising Rexam on the deals,
which are both due to close by the
end of the year.
Shares in Rexam closed up 2.3
per cent at 433.5p yesterday,
valuing the FTSE 100-listed firm
at around 3.7bn.
WEDNESDAY 4 JULY 2012
13
NEWS
cityam.com
In the UK two separate beers are allowed to use the Budweiser trademark
St Modwen says net asset value
lifted by housebuilder demand
REGENERATION SPECIALIST St
Modwen yesterday said that a strong
appetite for new homes, particularly
in London and the South East,
helped lift its net asset value (NAV)
in the first half of the year.
Chief executive Bill Oliver said
despite the on-going challenges in
the economy it had delivered a
strong set of first half results.
The group, which last month was
selected as the preferred partner
for the 2bn regeneration of New
Covent Garden Market in Nine
Elms, posted a six per cent increase
BY KASMIRA JEFFORD
in NAV to 264p a share, driven by
21.5m of net revaluation gains.
St Modwen said housebuilders
demand for residential land had
gained momentum. While
London was the central focus, the
group said there was interest for
well-located sites across the UK.
In the period to 31 May it sold 103
acres of residential land for 146m.
Its new housebuilding arm, St
Modwen Homes, made 77 sales, with
a further 145 exchanged or reserved.
Meanwhile St Modwen also said it
expects to formalise plans for the
long-awaited redevelopment of its
Elephant and Castle shopping centre
by the end of the year.
The firm said it aimed to be on site
in 2015, with plans to more than
double the size of its retail footprint
to 450,000 square feet and build up
to 1,000 apartments above the mall.
St. Modwen Properties PLC
3Jul 27Jun 28Jun 29Jun 2Jul
160
165
170
175
180 p
175.00
3Jul
HOUSEBUILDER Persimmon said
yesterday it had made an excellent
start to its new strategic plan by
completing more new homes,
attracting more viewers and selling
them for a higher fee, giving it
confidence for the full year.
The group followed other
property developers by saying that
market conditions had been
relatively stable despite sentiment
being hit by the continued
weakness in the wider economy.
It legally completed 4,712 new
homes in the first six months of
2012, up six per cent, while
cancellation rates remained in
line with last year, sending
turnover up 13 per cent to 805m.
BY CITY A.M. REPORTER
Persimmon in
house sale lift
LONDONREPORT
Mayer Brown
Alexandria Carr, the lead legal
adviser at HM Treasury on EU
financial services strategy, has
been appointed by the law firm
to its financial services,
regulatory and enforcement
group in London. She has
worked for the UK government
for 13 years, the last five of
which were spent at the
Treasury.
Close Brothers Asset Management
The division of the specialist financial services group has
appointed Frankie Mendoza as head of product
infrastructure and strategic relationships. He joins from
Legal & General Assurance Society, where he has worked
for over 20 years as both operational readiness director
and as head of investment services for four years.
SWIP
Scottish Widows Investment Partnership has appointed
Derek McKay as head of finance. He has worked for
Lloyds Banking Group for 15 years and was previously
head of management reporting and planning for the
insurance division. Prior to that he held a number of
senior roles within insurance finance.
Alexander Man Solutions
The recruitment company has appointed John Collington
as chief operating officer and as a member of the
executive board. He has been director general and chief
procurement officer within the Cabinet Office since 2010,
and was previously group commercial director at the
Home Office.
Paul Hastings
The international law firm has announced that Ugo
Giordano is joining the finance practice in its London
office as a partner. He has practised in the UK since 1996,
with experience in capital markets, securitisation,
structured finance, structured products, banking and
securities regulation. He leaves Ashurst to join Paul
Hastings.
Capital Support
Ray Bricknell, formerly the head of IT at RAB Capital, has
been appointed head of technical services at the IT
solutions firm. He has worked in the IT industry for over
thirty years and his career includes senior management
positions at Prudential, Marsh McLennan and Barclays.
Bedrock
The private investment office has set up an advisory
board. It will be chaired by Henrique Meirelles, the
president of the Central Bank of Brazil from 2003 to
2010, and Bedrock advisor Jeff Keil, the former vice
chairman of the executive committee of the Republic
National Bank of New York.
WHOS SWITCHING JOBS Edited by Jamie Sutherland
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
US stocks gain
in thin trading
before holiday
U
S stocks extended a rally for a
third day in a shortened
trading session yesterday as
sharp gains in oil prices lifted
energy shares and traders factored in
increased expectations for central
bank stimulus.
A raft of weak economic data has
raised hopes that the European
Central Bank will cut interest rates to
a record low tomorrow in a move that
could drive stock markets higher and
further lift commodities like oil and
copper.
Yesterdays gains came on a short-
ened trading day before the 4 July
Independence Day holiday when US
markets are closed. Trading volume
was the lowest of the year at 3.78bn
shares on the NYSE, Nasdaq and
AMEX.
Brent crude oil topped $101 a barrel
for the first time in three weeks as
tension over Iran increased concerns
about threats to supply and as
investors bet on further policy action.
US crude was up $3.50 at $87.25 a
barrel. The S&Ps energy stocks sector
was the top gainer, up 2.2 per cent.
Eric Kuby, chief investment officer
at North Star Investment
Management in Chicago, said that
last weeks European summit, which
sparked the rally with measures to
ease the blocs crisis, has raised expec-
tations that policymakers globally are
waking up to the need to support
financial markets and the economy.
We have been in rally mode, he
said. Its hard to buy into the actual
economic numbers as really moving
the market as they seem to be so
dwarfed by the this whole global liq-
uidity situation.
The Dow Jones industrial average
gained 72.43 points, or 0.56 per cent,
to 12,943.82. The Standard & Poors
500 Index rose 8.51 points, or 0.62 per
cent, to 1,374.02. The Nasdaq
Composite Index added 24.85 points,
or 0.84 per cent, to 2,976.08.
The euro rallied, climbing to a ses-
sion peak as investors positioned for
the European Central Bank policy
meeting.
Major carmakers also posted
stronger-than-expected sales gains in
June. Shares of Ford and General
Motors rose on the news. Ford gained
2.2 per cent to $9.60 while General
Motors rose 5.6 per cent to $20.67.
The S&P 500 has gained 3.4 per cent
over the last three sessions, its best
such run since December. The move
has lifted the S&P 500 out of a recent
trading range of 1,350-1,360, meaning
stocks could advance to a higher
range, according to analysts at Brown
Brothers Harriman.
Stocks posted their biggest one-day
gain of the year on Friday after
European policymakers said EU emer-
gency funds could be used to buy
bonds of debt-stricken countries.
Microsoft shares rose 0.7 per cent
yesterday. The company said its pur-
chase of aQuantive, its largest acquisi-
tion in the Internet sector, was
effectively worthless and wiped out
any profit for the past quarter.
B
RITAINS top share index hit
two-month highs yesterday,
extending gains into a third
session as investors readied for
more economic stimulus after
surprise action last week at an EU
summit to tackle the festering
Eurozone debt crisis.
But traders said the rally could be
short-lived and the market may face
downward pressure starting next week
as the root problems of the euro debt
crisis has not been eliminated.
It is broadly positive today and we
are seeing investors buying this market
at this level, said Joe Rundle, head of
trading at ETX Capital.
There was a resolution on the euro
deal but again it has not actually fixed
the problem. So people are unsure
where to invest and thats why [we are
seeing] short-term trading.
The UK rally also tracked US markets,
boosted by stronger-than-expected
growth in factory orders last month,
lessening concerns about the depth of
the downturn in the worlds largest
economy.
UK trading volumes remained rela-
tively thin at 83 per cent of the 90-day
daily average. Todays UK Independence
Day holiday followed by tomorrows
European Central Bank and Bank of
England meetings meant investors
were reluctant to take new positions
The FTSE 100 closed up 47.09 points,
or 0.83 per cent, at 5,687.73, its highest
close since early May.
Miners led blue chip gainers, bol-
stered by prospects of rising global
demand for resources on the back of
central banks monetary easing. The
top performer was Vedanta Resources,
surging 6.1 per cent, followed by
Antofagasta, which gained 3.8 per
cent, and Kazakhmys, which added 3.6
per cent.
On the flipside, FTSE 250-listed miner
Talvivaara tumbled 12.6 per cent after
it warned it would miss output targets.
Barclays saw some of the heaviest vol-
umes, with more than double the
usual number of shares traded.
The stock closed down 0.8 per cent
after a very volatile day, reversing earli-
er gains after the bank said it had
spent almost 100m on a three-year
internal probe into how it had submit-
ted inaccurate Libor interest rate
prices, which cost chief executive Bob
Diamond and chief operating officer
Jerry del Missier their jobs.
RBS, which is also being investigated
in the Libor scandal, lost 1.1 per cent.
Aberdeen Asset Management, mean-
while, fell 3.7 per cent to lead the FTSE
100 fallers list, following Credit
Suisses sale of its seven per cent stake
in the company.
Recent weak European data has
raised expectations that central banks
will take fresh policy action this week
to stimulate their economies.
The Bank of England is widely expect-
ed to launch a third round of gilt pur-
chases tomorrow, while the ECB will
likely cut interest rates to 0.75 per cent
from one per cent.
Now that commodity prices have
fallen, there is much more scope for
the ECB to cut rates, said Dominic
Rossi, global CIO equities at Fidelity
Worldwide Investment.
The downside risk to equities from
current levels isnt that great. When
the markets gone down to 5,200 on
the FTSE, Id be within five per cent of
writing a buy note, but I cant see the
market getting above 6,000 until we
solve some of the problems. I would
suggest investors focus on low beta and
low volatility strategies.
Miners lead the FTSE 100 upwards
in the hope of economic stimulus
BESTof theBROKERS
BTG PLC
27Jun 28Jun 29Jun 2Jul 3Jul
p 425
415
420
410
405
400
395
422.50
3 Jul
BTG
Merchant Securities has initiated coverage of the speciality healthcare
group with a buy rating and a target price of 490p, seeing what it
calls a tantalising growth story after three development and distribution
companies were combined to produce two direct sales operations. As a
result the broker is forecasting a significant increase in revenues from
international operations rising to as much as 44 per cent in 2020.
FTSE
5,650
5,700
5,500
5,450
5,550
5,600
27Jun 28Jun 29Jun 2Jul 3Jul
5,687.73
3 Jul
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
in association with
Man Group PLC
27Jun 28Jun 29Jun 2Jul 3Jul
p
77
75
76
74
73
72
70.85
3 Jul
MAN GROUP
Credit Suisse has downgraded its rating for hedge fund manager neutral
from outperform and lowered its target price from 130p to 88p. The
broker sees Mans market environment as tough, and says volatility in the
second quarter of this year will have hit Mans flagship funds AHL and GLG
after a strong first three months of the year. The broker expects a negative
impact on assets under management of $2.3bn in the second quarter.
WM Morrison Supermarkets PLC
27Jun 28Jun 29Jun 2Jul 3Jul
p
270
268
269
267
266
265
264
263
270.60
3 Jul
WM MORRISON
Panmure Gordon has downgraded the supermarket group from hold
to sell and cut its target price from 260p to 240p. The broker has alos
downgraded its forecasts over the next three years by four per cent,
seven per cent and nine per cent respectively, having taken into account
recent industry sales trends. Panmure says the diversification into small
stores and into new formats for its main chain has added risks.
WEDNESDAY 4 JULY 2012
14
cityam.com
WEDNESDAY 4 JULY 2012
cityam.com
LON GD ONCE FIX AM..................................1608.50 12.25
SILVERLDN FIX AM.........................................28.36 0.84
MAPLE LEAF 1 OZ............................................30.48 0.88
LON PLATINUM AM......................................1467.00 25.00
LON PALLADIUM AM.....................................583.00 3.00
ALUMINIUM CASH.......................................1866.50 32.50
COPPER CASH.............................................7647.00 43.00
LEAD CASH..................................................1851.00 55.50
NICKEL CASH.............................................16570.00 100.00
TIN CASH..................................................18930.00 180.00
ZINC CASH...................................................1874.50 32.00
BRENT SPOT INDEX ........................................96.54 1.26
SOYA............................................................1532.25 19.50
COCOA........................................................2282.00 -7.00
COFFEE ..........................................................174.30 4.20
KRUG ..........................................................1673.60 20.10
WHEAT ..........................................................177.88 3.27
AIR LIQUIDE ......................................................91.89 0.13 92.79 73.38
ALLIANZ............................................................80.97 0.80 98.60 56.16
ANHEUS-BUSCHINBEV....................................62.88 0.09 63.47 33.85
ARCELORMITTAL ................................................12.83 0.69 24.77 10.47
ASML HOLDING..................................................41.87 0.57 41.87 21.22
AXA...................................................................10.70 0.10 15.94 7.88
BANCO SANTANDER............................................5.32 0.07 7.57 4.17
BASF SE............................................................56.50 1.25 69.80 42.19
BAYER ..............................................................58.30 0.82 58.64 35.36
BBVA ..................................................................5.79 0.16 8.06 4.52
BMW................................................................58.94 1.53 73.95 43.49
BNP PARIBAS ....................................................31.22 -0.43 54.98 22.72
CARREFOUR......................................................14.96 0.25 24.89 13.38
CRH PLC..............................................................15.51 0.16 16.93 10.28
DAIMLER...........................................................37.06 0.82 53.95 29.02
DANONE...........................................................50.30 0.90 54.96 41.92
DEUTSCHE BANK ..............................................29.56 0.55 42.08 20.79
DEUTSCHE TELEKOM............................................8.71 -0.01 10.94 7.69
E.ON...................................................................17.19 -0.04 20.00 12.50
ENEL ...................................................................2.53 0.12 4.53 2.23
ENI .....................................................................17.57 1.44 18.72 11.83
ESSILOR INTERNAT.............................................75.14 0.99 75.52 46.89
FRANCE TELECOM..............................................10.45 0.01 14.73 9.45
GDF SUEZ ..........................................................18.70 -0.21 25.44 15.62
GENERALI ASS...................................................10.64 0.42 14.95 8.16
IBERDROLA.........................................................3.75 0.03 5.88 3.03
INDITEX.............................................................82.43 1.07 82.79 52.20
ING GROEP CVA..................................................5.40 0.12 8.72 4.21
INTESA SANPAOLO ...............................................1.13 0.09 1.92 0.85
KON.PHILIPS ELECTR..........................................15.52 -0.21 18.06 12.01
L'OREAL............................................................94.04 1.27 94.80 68.83
LVMH...............................................................122.60 1.60 136.80 94.16
MUNICHRE ......................................................113.90 2.00 118.35 77.80
NOKIA.................................................................1.69 0.02 5.19 1.60
REPSOL YPF .......................................................13.19 0.42 23.29 11.07
RWE..................................................................33.32 0.50 39.24 21.15
SAINT-GOBAIN..................................................29.85 0.27 45.38 25.77
SANOFI .............................................................60.93 0.60 60.93 42.85
SAP...................................................................47.87 0.33 54.85 32.88
SCHNEIDER ELECTRIC ........................................45.01 0.83 58.85 35.00
SIEMENS ...........................................................67.46 0.32 96.19 62.13
SOCIETE GENERALE............................................18.67 -0.29 42.64 14.32
TELEFONICA.......................................................10.53 0.12 16.61 8.81
TOTAL................................................................37.06 1.07 42.97 29.40
UNIBAIL-RODAMCO SE ....................................149.70 1.80 162.95 123.30
UNICREDIT..........................................................3.02 0.33 10.13 2.20
UNILEVER CVA ..................................................27.05 0.45 27.16 20.96
VINCI ..................................................................37.31 -0.47 44.79 28.46
VIVENDI.............................................................14.87 0.06 18.61 12.02
VOLKSWAGEN VORZ ........................................127.95 3.45 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5687.73 47.09 0.83
FTSE 250 INDEX. . . . . . . . . . . . . . . . 11189.81 96.34 0.87
FTSE UK ALL SHARE. . . . . . . . . . . . . 2951.72 24.60 0.84
FTSE AIM ALL SH. . . . . . . . . . . . . . . . 692.98 13.55 1.99
DOWJONES INDUS 30 . . . . . . . . . 12943.82 72.43 0.56
S&P 500. . . . . . . . . . . . . . . . . . . . . . 1374.02 8.51 0.62
NASDAQ COMPOSITE . . . . . . . . . . . 2976.08 24.85 0.84
FTSEUROFIRST 300. . . . . . . . . . . . . . 1046.11 10.79 1.04
NIKKEI 225. . . . . . . . . . . . . . . . . . . 9066.59 63.11 0.70
DAX 30 PERFORMANCE . . . . . . . . . . 6578.21 82.13 1.26
CAC 40. . . . . . . . . . . . . . . . . . . . . . . 3271.20 31.00 0.96
SHANGHAI SE INDEX. . . . . . . . . . . . 2229.19 3.08 0.14
HANG SENG . . . . . . . . . . . . . . . . . . 19735.53 294.07 1.51
S&P/ASX 20 INDEX . . . . . . . . . . . . . 2503.70 -1.50 -0.06
ASX ALL ORDINARIES. . . . . . . . . . . 4166.40 -6.10 -0.15
BOVESPA SAO PAOLO . . . . . . . . . . 56136.69 1443.90 2.64
ISEQ OVERALL INDEX . . . . . . . . . . . . 3189.31 27.94 0.88
STRAITS TIMES . . . . . . . . . . . . . . . . 2945.33 34.74 1.19
IGBM. . . . . . . . . . . . . . . . . . . . . . . . . 730.53 9.23 1.28
SWISS MARKET INDEX . . . . . . . . . . 6194.08 84.67 1.39
Price Chg %chg
3M....................................................................89.70 0.42 98.19 68.63
ABBOTT LABS...................................................64.83 0.20 65.00 46.29
ALCOA................................................................8.90 0.28 16.60 8.21
ALTRIA GROUP.................................................34.99 0.03 35.05 23.20
AMAZON.COM.................................................229.53 0.21 246.71 166.97
AMERICAN EXPRESS .........................................59.41 0.36 61.42 41.30
AMGEN INC........................................................75.16 0.80 75.17 47.66
APPLE.............................................................599.41 6.89 644.00 334.20
AT&T ................................................................36.00 -0.20 36.21 27.29
BANK OF AMERICA.............................................8.06 0.01 11.14 4.92
BOEING CO........................................................74.27 1.09 77.83 56.01
BRISTOL MYERS SQUI ........................................34.91 -1.14 36.34 25.69
CATERPILLAR ...................................................86.46 2.78 116.95 67.54
CHEVRON ........................................................107.37 1.51 112.28 86.68
CISCO SYSTEMS...................................................17.15 0.07 21.30 13.30
CITIGROUP........................................................27.65 0.19 43.06 21.40
COCA-COLA .......................................................79.16 0.24 79.36 63.34
COMCAST CLASS A............................................32.03 -0.23 32.50 19.19
CONOCOPHILLIPS ..............................................56.41 0.68 80.13 50.62
CVS/CAREMARK................................................47.83 0.02 48.09 31.30
DU PONT(EI) DE NMR.......................................49.59 0.16 57.50 37.10
EXXON MOBIL...................................................86.28 0.94 87.94 63.47
GENERAL ELECTRIC...........................................20.43 -0.06 21.00 14.02
GOOGLE A.......................................................587.83 7.36 670.25 480.60
HEWLETT PACKARD..........................................20.36 0.20 37.70 19.12
HOME DEPOT.....................................................51.65 -1.36 53.28 28.13
IBM .................................................................195.93 0.10 210.69 157.13
INTEL CORP......................................................26.86 0.20 29.27 19.16
J.P.MORGAN CHASE..........................................35.88 -0.40 46.49 27.85
JOHNSON & JOHNSON.....................................68.04 0.04 68.12 55.76
KRAFT FOODS A ................................................39.21 0.33 39.99 31.88
MC DONALD'S CORP .........................................88.58 0.50 102.22 82.01
MERCK AND CO. NEW........................................41.81 -0.04 41.96 29.47
MICROSOFT.......................................................30.76 0.20 32.95 23.79
OCCID. PETROLEUM..........................................88.04 2.10 109.08 66.36
ORACLE CORP...................................................29.97 0.18 34.13 24.72
PEPSICO............................................................70.76 0.00 70.89 58.50
PFIZER..............................................................22.87 -0.13 23.30 16.63
PHILIP MORRIS INTL.........................................89.49 0.49 91.05 60.45
PROCTER AND GAMBLE.....................................61.36 0.17 67.95 57.56
QUALCOMM INC................................................56.26 0.60 68.87 45.98
SCHLUMBERGER...............................................67.34 2.40 95.53 54.79
TRAVELERS CIES................................................64.13 0.21 65.27 45.97
UNITED TECHNOLOGIE.......................................75.75 0.71 91.83 66.87
US BANCORP DELAWRE ...................................32.58 0.14 32.98 20.10
VERIZON COMMS..............................................44.95 0.02 45.07 32.28
VISA CL A........................................................126.34 -0.28 127.00 76.11
WAL-MART STORES ..........................................70.75 1.40 70.77 48.31
WALT DISNEY CO..............................................48.59 -0.13 48.95 28.19
WELLS FARGO & CO..........................................33.48 -0.07 34.59 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight.........................................0.500 0.00
BoE IR 7 days..............................................0.500 0.00
BoE IR 1 month...........................................0.500 0.00
BoE IR 3 months.........................................0.500 0.00
BoE IR 6 months ........................................0.500 0.00
LIBOR Euro - overnight................................0.254 0.00
LIBOR Euro - 12 months.................................1.185 0.00
LIBOR USD - overnight .................................0.170 0.00
LIBOR USD - 12 months................................1.069 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate.............................................1.500 0.00
Finance house base rate..............................1.500 0.00
US Fed funds ...............................................0.250 0.00
US long bond yield......................................2.740 0.04
European repo rate......................................0.168 0.02
Euro Euribor .................................................0.319 0.00
The vix index ...............................................16.80 -0.28
The baltic dry index....................................1013.0 9.00
Markit iBoxx ...............................................250.19 -0.32
Markit iTraxx ...............................................161.46 1.78
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .290.7 0.0 333.0 248.1
Chemring Group . . . . . .269.0 -5.1 638.5 261.2
Cobham . . . . . . . . . . . . .235.2 -0.4 239.5 165.9
Meggitt . . . . . . . . . . . . .395.6 7.3 413.5 304.9
QinetiQ Group . . . . . . . .160.6 0.8 160.9 101.5
Rolls-Royce Holdi . . . . .879.0 10.0 880.0 557.5
Senior . . . . . . . . . . . . . .194.4 2.3 213.0 135.6
Ultra Electronics . . . . .1662.0 22.0 1780.0 1305.0
GKN . . . . . . . . . . . . . . . .183.6 1.9 245.0 157.0
Bank of Georgia H . . .1090.0 26.0 1120.0 929.8
Barclays . . . . . . . . . . . . . .167.1 -1.4 262.7 138.9
HSBC Holdings . . . . . . .570.3 0.2 627.0 463.5
Lloyds Banking Gr . . . . . .31.8 0.3 49.9 21.8
Royal Bank of Sco . . . . .216.5 -2.5 391.9 173.4
Standard Chartere . . . .1447.5 28.5 1662.5 1169.5
Barr (A.G.) . . . . . . . . . . .418.4 13.4 439.0 343.7
Britvic . . . . . . . . . . . . . . .316.7 -17.8 399.5 289.9
Diageo . . . . . . . . . . . . .1653.0 -5.0 1664.0 1112.0
SABMiller . . . . . . . . . . .2613.5 39.0 2660.0 1979.0
AZ Electronic Mat . . . . .309.6 9.6 323.5 206.1
Croda Internation . . . .2333.0 34.0 2333.0 1597.0
Elementis . . . . . . . . . . .201.9 1.9 211.8 107.5
Johnson Matthey . . . .2263.0 56.0 2408.0 1523.0
Victrex . . . . . . . . . . . . .1314.0 38.0 1590.0 1025.0
Yule Catto & Co . . . . . . . .140.1 -3.3 253.0 133.9
/$ 1.2607 0,0023
/ 0.8036 0.0017
/ 100.71 0.6562
/ 1.2445 0.0025
/$ 1.5689 0.0003
/ 125.33 0.5653
FTSE 100
5687.73
47.09
FTSE 250
11189.81
96.34
FTSE ALL SHARE
2951.72
24.60
DOW
12943.82
72.43
NASDAQ
2976.08
24.85
S&P500
1374.02
8.51
Brown (N.) Group . . . . .259.0 10.5 291.0 222.4
Carpetright . . . . . . . . . .678.0 3.0 728.5 375.0
Debenhams . . . . . . . . . .86.9 0.6 86.9 51.2
Dignity . . . . . . . . . . . . . .814.5 4.5 868.0 727.0
Dixons Retail . . . . . . . . . .17.9 -0.3 19.6 9.4
DunelmGroup . . . . . . .520.0 -2.5 533.0 392.9
Halfords Group . . . . . . .228.4 4.6 374.7 221.2
Home Retail Group . . . . .85.2 0.7 165.7 69.2
Inchcape . . . . . . . . . . . .349.5 6.0 420.0 268.1
JD Sports Fashion . . . . .735.0 11.0 1030.0 570.0
Kingsher . . . . . . . . . . .281.8 -7.2 313.8 217.0
Marks & Spencer G . . . .331.0 3.1 389.5 301.8
Next . . . . . . . . . . . . . . .3196.0 1.0 3207.0 2153.0
Sports Direct Int . . . . . .310.2 0.2 315.6 190.0
Ted Baker . . . . . . . . . . .904.5 -2.5 928.5 633.0
WHSmith . . . . . . . . . . .555.0 2.0 559.0 451.6
NMC Health . . . . . . . . . .197.4 4.4 230.0 190.0
Smith & Nephew . . . . . .637.5 -1.5 686.5 521.0
Synergy Health . . . . . .926.0 1.0 981.0 762.5
Barratt Developme . . . .142.2 -2.4 151.5 67.5
Bellway . . . . . . . . . . . . .828.5 -11.5 859.5 540.5
Berkeley Group Ho . . .1399.0 -27.0 1439.0 1025.0
Bovis Homes Group . . .478.0 -9.4 518.5 326.5
Balfour Beatty . . . . . . . .303.1 2.5 323.8 214.6
CRH . . . . . . . . . . . . . . .1244.0 3.0 1525.0 1052.0
Galliford Try . . . . . . . . .647.0 0.0 653.0 383.8
Kier Group . . . . . . . . . .1256.0 -3.0 1489.0 1095.0
Drax Group . . . . . . . . . .572.0 5.0 581.5 453.0
SSE . . . . . . . . . . . . . . . .1394.0 -7.0 1423.0 1193.0
Dialight . . . . . . . . . . . .1064.0 6.0 1120.0 643.5
Domino Printing S . . . .570.0 10.5 701.5 434.3
Halma . . . . . . . . . . . . . .431.7 3.9 434.3 306.3
Laird . . . . . . . . . . . . . . .190.0 -1.8 222.0 128.5
Morgan Crucible C . . . .296.2 7.7 360.0 224.0
Oxford Instrument . . .1298.0 7.0 1305.0 714.0
Renishaw . . . . . . . . . .1400.0 6.0 1886.0 800.0
Spectris . . . . . . . . . . . .1596.0 46.0 1902.0 1039.0
Aberforth Smaller . . . .598.5 9.5 714.0 494.0
Alliance Trust . . . . . . . .360.0 4.7 392.7 310.2
Bankers Inv Trust . . . . .414.3 5.4 433.8 346.5
BH Global Ltd. GB . . . . .1145.0 -3.0 1212.0 1085.0
BH Global Ltd. US . . . . . . .11.4 -0.1 12.2 10.8
BH Macro Ltd. EUR . . . . . .18.7 -0.0 20.2 16.9
BH Macro Ltd. GBP . . . .1928.0 7.0 2078.0 1745.0
BH Macro Ltd. USD . . . . . .18.5 -0.2 20.2 16.8
BlackRock World M . . . .585.0 8.0 782.0 556.0
BlueCrest AllBlue . . . . . .165.0 -0.9 174.0 160.5
British Assets Tr . . . . . . .119.4 2.2 137.6 109.0
British Empire Se . . . . .415.0 1.3 530.0 386.6
Caledonia Investm . . .1461.0 20.0 1780.0 1237.0
City of London In . . . . . .301.9 4.4 306.9 257.0
Dexion Absolute L . . . . .135.4 0.2 146.1 130.0
Edinburgh Dragon . . . .242.6 2.6 253.1 201.4
Edinburgh Inv Tru . . . .503.0 7.9 504.0 422.5
Electra Private E . . . . .1672.0 7.0 1740.0 1287.0
Fidelity China Sp . . . . . . .75.9 -0.1 102.9 70.0
Fidelity European . . . .1099.0 4.0 1280.0 912.0
Foreign and Colon . . . . .308.1 4.5 327.9 261.5
Herald Inv Trust . . . . . .496.7 5.8 545.5 419.0
HICL Infrastructu . . . . . .119.9 0.6 123.6 112.7
John Laing Infras . . . . . .107.5 0.1 110.6 103.8
JPMorgan American . .908.0 10.5 965.5 721.5
JPMorgan Asian In . . . .180.0 2.2 243.9 170.0
JPMorgan Emerging . . .542.5 7.5 610.5 480.1
JPMorgan Indian I . . . .345.0 5.8 437.0 303.4
LawDebenture Cor . . .386.9 5.9 398.7 323.0
Mercantile Invest . . . . .982.0 7.5 1090.0 823.0
Merchants Trust . . . . . .383.0 7.2 427.7 341.5
Monks Inv Trust . . . . . . .328.4 5.5 357.4 298.1
Murray Income Tru . . . .660.5 5.5 674.0 568.0
Murray Internatio . . . .1006.0 12.0 1012.0 818.5
NB Global Floatin . . . . . .98.5 0.0 103.0 92.5
Perpetual Income . . . .272.7 0.5 274.1 236.5
Personal Assets T . . . .34770.0 370.0 36000.0 32340.0
Polar Capital Tec . . . . . .375.0 9.0 404.0 299.5
RIT Capital Partn . . . . .1283.0 8.0 1360.0 1096.0
Scottish Inv Trus . . . . . .466.8 5.3 524.0 417.0
Scottish Mortgage . . . .689.0 13.0 781.0 565.0
SVG Capital . . . . . . . . . .285.0 2.7 295.5 165.1
Temple Bar Inv Tr . . . . .921.0 7.0 970.0 791.0
Templeton Emergin . . .549.5 11.5 678.5 497.0
TRProperty Inv T . . . . . .155.0 3.7 206.1 136.2
TRProperty Inv T . . . . . .65.4 0.2 94.0 59.8
Utilico Emerging . . . . .165.0 2.4 169.5 133.8
Witan Inv Trust . . . . . . .468.9 9.7 533.0 401.5
3i Group . . . . . . . . . . . . .198.9 1.4 292.1 166.9
3i Infrastructure . . . . . . .123.3 0.7 128.0 115.6
Aberdeen Asset Ma . . .255.0 -9.7 283.8 167.8
Ashmore Group . . . . . .350.4 -2.9 420.0 306.4
Brewin Dolphin Ho . . . .143.0 1.3 177.0 113.7
Camellia . . . . . . . . . . .9450.0 200.0 10603.0 8800.0
Charles Taylor . . . . . . . .155.0 -0.3 160.0 115.6
City of London Gr . . . . . .73.0 0.0 79.0 61.3
City of London In . . . . .330.0 6.8 440.0 304.3
Close Brothers Gr . . . . .762.0 10.0 812.0 590.0
F&C Asset Managem . . .84.3 0.3 84.8 56.1
Hargreaves Lansdo . . .548.0 11.0 629.5 402.5
Helphire Group . . . . . . . . .1.0 -0.0 3.8 1.0
Henderson Group . . . . .104.2 -0.1 163.7 92.9
Highway Capital . . . . . . .14.0 0.0 19.5 12.0
ICAP . . . . . . . . . . . . . . . .334.8 -5.0 498.8 311.6
IG Group Holdings . . . .479.9 1.2 502.5 393.6
Intermediate Capi . . . . .277.7 -0.6 338.4 197.9
International Per . . . . .246.2 3.2 381.2 148.5
International Pub . . . . .119.0 0.6 121.6 112.6
Investec . . . . . . . . . . . . .394.7 13.7 522.0 310.4
Jupiter Fund Mana . . . .218.3 -1.2 260.2 184.9
Liontrust Asset M . . . . . .93.0 0.5 125.0 57.9
LMS Capital . . . . . . . . . . .68.8 1.3 68.8 54.0
London Finance & . . . . .19.5 0.0 23.5 18.0
London Stock Exch . . .1021.0 -3.0 1093.0 756.5
Lonrho . . . . . . . . . . . . . . . .7.3 -0.1 18.0 6.7
Man Group . . . . . . . . . . .70.9 -3.6 259.6 69.2
Paragon Group Of . . . .172.0 2.0 200.7 134.6
Provident Financi . . . .1236.0 2.0 1246.0 915.0
Rathbone Brothers . . .1292.0 28.0 1351.0 977.0
Real Estate Credi . . . . . . .86.5 0.0 143.0 79.5
Record . . . . . . . . . . . . . . .16.8 -0.4 32.4 9.8
RSM Tenon Group . . . . . . .6.1 -0.4 31.5 4.8
S & U . . . . . . . . . . . . . . .845.0 0.0 855.0 547.5
Schroders . . . . . . . . . .1380.0 10.0 1665.0 1166.0
Tullett Prebon . . . . . . . .290.2 3.7 386.4 262.3
Walker Crips Grou . . . . . .38.0 0.0 51.5 36.0
BT Group . . . . . . . . . . . .213.9 -1.4 232.1 161.0
Cable & Wireless . . . . . .29.9 0.2 45.2 27.3
Cable & Wireless . . . . . .37.9 0.1 48.7 14.2
COLT Group SA . . . . . . . .125.0 0.0 143.0 84.1
KCOM Group . . . . . . . . . .72.4 0.7 84.0 65.6
TalkTalk Telecom . . . . .193.6 1.2 194.7 118.9
TelecomPlus . . . . . . . .860.0 6.0 863.0 550.0
Booker Group . . . . . . . . .93.3 0.2 93.8 66.2
Greggs . . . . . . . . . . . . .504.5 1.5 558.0 445.0
Morrison (Wm) Sup . . .270.6 3.6 328.0 263.0
Ocado Group . . . . . . . . . .77.0 2.0 198.2 52.9
Sainsbury (J) . . . . . . . . .307.7 3.2 334.2 263.5
Tesco . . . . . . . . . . . . . . .319.8 5.1 411.5 297.1
Associated Britis . . . . .1290.0 2.0 1291.0 977.0
Cranswick . . . . . . . . . . .840.0 21.5 841.0 588.5
Dairy Crest Group . . . . .333.8 -0.4 387.1 290.4
Devro . . . . . . . . . . . . . . .311.3 4.2 332.2 232.0
Tate & Lyle . . . . . . . . . .650.5 3.0 720.5 544.5
Unilever . . . . . . . . . . . .2183.0 28.0 2189.0 1892.0
Mondi . . . . . . . . . . . . . .568.0 18.0 664.0 413.5
Centrica . . . . . . . . . . . . .317.8 -1.8 330.3 278.8
National Grid . . . . . . . . .679.5 -1.5 685.5 569.0
Pennon Group . . . . . . . .761.0 -7.5 777.0 623.5
Severn Trent . . . . . . . .1652.0 -10.0 1796.0 1407.0
United Utilities . . . . . . .673.5 -6.0 680.5 560.0
Cookson Group . . . . . . .612.5 6.5 747.5 395.8
Rexam . . . . . . . . . . . . . .433.5 9.9 438.0 299.8
RPC Group . . . . . . . . . .390.0 1.0 397.0 300.5
Smith (DS) . . . . . . . . . . .154.5 2.5 183.7 113.3
Smiths Group . . . . . . .1040.0 22.0 1212.0 869.5
Price Chg High Low
Persimmon . . . . . . . . . .621.5 -13.5 706.5 374.0
Reckitt Benckiser . . . . .3471.0 25.0 3660.0 3100.0
Redrow . . . . . . . . . . . . .128.5 2.6 130.3 90.2
Taylor Wimpey . . . . . . . .49.3 -0.7 52.8 28.7
Bodycote . . . . . . . . . . . .351.8 7.5 437.1 225.6
Fenner . . . . . . . . . . . . . .381.2 -1.7 483.7 280.0
IMI . . . . . . . . . . . . . . . . .860.0 18.5 1119.0 636.5
Melrose . . . . . . . . . . . . .362.7 -6.3 441.6 268.0
Rotork . . . . . . . . . . . . .2058.0 60.0 2260.0 1501.0
Spirax-Sarco Engi . . . .2045.0 34.0 2334.0 1649.0
Weir Group . . . . . . . . . .1612.0 49.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .267.7 9.2 460.5 241.0
Ferrexpo . . . . . . . . . . . .221.2 7.4 495.3 179.4
Talvivaara Mining . . . . .148.6 -21.4 455.6 129.0
BBA Aviation . . . . . . . .200.0 -3.0 222.4 156.0
Stobart Group Ltd . . . . .115.0 -0.9 145.0 110.3
Admiral Group . . . . . . .1185.0 16.0 1671.0 787.0
Amlin . . . . . . . . . . . . . . .359.2 4.3 417.9 270.6
Beazley . . . . . . . . . . . . .142.4 0.5 151.8 109.6
Catlin Group Ltd. . . . . . .430.3 8.3 449.0 337.0
Hiscox Ltd. . . . . . . . . . . .425.3 1.3 427.3 340.5
Johnston Press . . . . . . . . .5.5 0.6 7.9 4.1
MecomGroup . . . . . . . . .64.0 -0.3 242.0 61.0
Moneysupermarket. . . .129.9 3.0 135.9 93.4
Pearson . . . . . . . . . . . .1254.0 -8.0 1266.0 1038.0
PerformGroup . . . . . . .409.0 4.1 410.9 150.0
Reed Elsevier . . . . . . . .523.0 7.0 578.0 461.3
Rightmove . . . . . . . . . .1619.0 4.0 1631.0 1058.0
STV Group . . . . . . . . . . . .91.5 0.5 128.8 76.3
Tarsus Group . . . . . . . . .151.0 -4.0 165.0 119.5
Trinity Mirror . . . . . . . . . .27.5 1.5 54.3 25.5
UBM . . . . . . . . . . . . . . . .592.5 -3.5 641.5 416.0
UTVMedia . . . . . . . . . . .150.0 2.3 159.5 92.5
Wilmington Group . . . . .84.0 1.0 119.0 78.5
WPP . . . . . . . . . . . . . . . .810.0 14.0 880.0 578.0
Yell Group . . . . . . . . . . . . .1.5 -0.1 11.0 1.2
African Barrick G . . . . . .415.5 22.3 616.5 309.8
Anglo American . . . . .2154.5 45.5 3181.0 1955.5
Antofagasta . . . . . . . . .1139.0 42.0 1491.0 900.5
Aquarius Platinum . . . . .51.0 2.9 322.6 44.5
Avocet Mining . . . . . . . . .71.3 -5.9 286.8 69.3
BHP Billiton . . . . . . . . .1870.0 40.0 2521.5 1667.0
Bumi . . . . . . . . . . . . . . .318.0 8.0 1148.0 305.0
Centamin (DI) . . . . . . . . .74.3 3.5 141.5 60.7
Eurasian Natural . . . . .435.6 10.0 815.0 390.8
Fresnillo . . . . . . . . . . . .1524.0 34.0 2150.0 1307.0
Jardine Lloyd Tho . . . . .726.5 9.5 764.5 576.0
Lancashire Holdin . . . . .794.5 1.5 825.0 620.0
RSA Insurance Gro . . . .109.7 1.1 137.9 97.7
Aviva . . . . . . . . . . . . . . .286.9 4.2 445.9 255.3
Legal & General G . . . . .129.5 1.0 135.0 89.8
Old Mutual . . . . . . . . . . .155.9 1.9 188.1 112.1
Phoenix Group Hol . . . .475.9 -11.1 604.0 405.3
Prudential . . . . . . . . . . .751.5 0.0 797.5 509.0
Resolution Ltd. . . . . . . .200.0 2.0 300.0 190.3
St James's Place . . . . . .336.1 1.9 376.0 294.0
Standard Life . . . . . . . . .235.4 1.0 250.7 172.0
4Imprint Group . . . . . . .291.0 1.0 312.5 200.0
Aegis Group . . . . . . . . . .168.1 3.1 187.4 115.7
Bloomsbury Publis . . . .115.0 2.0 133.0 91.3
British Sky Broad . . . . .689.0 1.5 850.0 618.5
Centaur Media . . . . . . . .33.0 -2.0 52.5 28.5
Chime Communicati . . .167.8 3.5 275.0 143.0
Creston . . . . . . . . . . . . . .55.5 -1.5 115.0 47.0
Euromoney Institu . . . .759.0 11.5 828.0 522.5
Future . . . . . . . . . . . . . . .12.0 -0.1 18.8 8.3
Haynes Publishing . . . .175.0 0.0 255.0 175.0
Huntsworth . . . . . . . . . .42.0 0.0 74.0 32.3
Informa . . . . . . . . . . . . .388.5 0.1 451.0 313.9
ITE Group . . . . . . . . . . . .192.9 -0.1 240.6 157.7
ITV . . . . . . . . . . . . . . . . . .76.4 -1.5 89.9 51.7
GemDiamonds Ltd. . . .202.7 2.2 310.6 179.8
Glencore Internat . . . . .303.8 4.8 503.0 292.0
Hochschild Mining . . . .485.2 12.2 549.5 365.9
Kazakhmys . . . . . . . . . .757.0 27.0 1405.0 665.0
Kenmare Resources . . . .39.8 0.1 61.5 31.0
Lonmin . . . . . . . . . . . . .767.0 0.0 1451.0 699.0
NewWorld Resourc . . . .332.1 -2.2 928.5 269.0
Petra Diamonds Lt . . . .122.0 0.8 188.2 97.0
Petropavlovsk . . . . . . . .477.5 5.0 913.0 361.7
Polymetal Interna . . . .928.0 8.5 1175.0 765.0
Randgold Resource . .5985.0 185.0 7565.0 4596.0
Rio Tinto . . . . . . . . . . . .3157.0 96.5 4595.0 2712.5
Vedanta Resources . . . .961.0 55.0 2088.0 871.5
Xstrata . . . . . . . . . . . . .806.4 3.5 1417.0 764.0
Inmarsat . . . . . . . . . . . .495.4 2.9 571.0 389.3
Vodafone Group . . . . . .179.6 0.2 182.7 155.1
Genesis Emerging . . . .482.8 8.3 543.5 424.0
Afren . . . . . . . . . . . . . . .109.6 2.1 165.1 73.6
BG Group . . . . . . . . . . .1347.0 24.0 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .432.9 0.4 504.6 363.2
Cairn Energy . . . . . . . . .276.3 6.7 468.6 248.2
EnQuest . . . . . . . . . . . . .114.6 4.5 132.6 85.7
Essar Energy . . . . . . . . .122.1 -3.6 422.1 101.6
Heritage Oil . . . . . . . . . .123.0 0.0 262.1 115.1
Ophir Energy . . . . . . . .599.5 4.5 637.5 184.5
Premier Oil . . . . . . . . . .362.3 12.1 455.4 310.0
Royal Dutch Shell . . . .2188.5 29.0 2402.0 1883.5
Royal Dutch Shell . . . .2269.5 30.0 2489.0 1890.5
Ruspetro . . . . . . . . . . . .133.5 0.0 230.0 125.0
Salamander Energy . . .167.6 -4.0 235.8 148.0
Soco Internationa . . . . .325.8 16.4 371.5 254.9
TullowOil . . . . . . . . . . .1531.0 38.0 1601.0 945.5
Amec . . . . . . . . . . . . . .1054.0 28.0 1171.0 740.5
Hunting . . . . . . . . . . . . .767.0 26.5 968.0 530.0
Kentz Corporation . . . .382.8 2.8 508.0 325.0
Petrofac Ltd. . . . . . . . .1459.0 22.0 1772.0 1108.0
Wood Group (John) . . .726.0 24.5 798.0 469.9
Burberry Group . . . . . .1331.0 -5.0 1600.0 1092.0
PZ Cussons . . . . . . . . . . .316.9 -0.1 380.0 285.0
AstraZeneca . . . . . . . .2932.0 50.0 3166.5 2543.5
BTG . . . . . . . . . . . . . . . .422.5 11.5 424.2 236.8
Dechra Pharmaceut . . .498.8 4.8 524.8 392.5
Genus . . . . . . . . . . . . . .1263.0 10.0 1457.0 853.5
GlaxoSmithKline . . . . .1469.5 -2.5 1497.0 1205.0
Hikma Pharmaceuti . . .665.0 8.5 789.0 555.5
Shire Plc . . . . . . . . . . . .1847.0 6.0 2300.0 1743.0
Capital & Countie . . . . . .212.7 1.6 213.3 158.1
Daejan Holdings . . . . .2709.0 -11.0 3300.0 2282.0
F&C Commercial Pr . . . .107.0 0.5 107.0 92.6
Grainger . . . . . . . . . . . . .92.6 -0.8 133.2 77.3
London & Stamford . . . .110.0 -0.3 135.0 101.8
Raven Russia Ltd . . . . . . .59.1 0.9 67.5 47.3
Savills . . . . . . . . . . . . . .360.0 2.6 402.0 256.2
UK Commercial Pro . . . . .71.5 0.5 82.0 65.1
Big Yellow Group . . . . .307.0 -0.2 326.0 218.0
British Land Co . . . . . . . .521.5 2.5 629.5 444.0
Capital Shopping . . . . .322.6 1.4 401.7 288.7
Derwent London . . . . .1895.0 8.0 1897.0 1400.0
Great Portland Es . . . . .403.2 4.9 445.0 312.9
Hammerson . . . . . . . . . .451.1 1.1 490.9 345.2
Hansteen Holdings . . . . .73.0 -1.0 89.5 68.0
Land Securities G . . . . .755.0 4.5 885.0 612.0
SEGRO . . . . . . . . . . . . . .223.7 4.9 319.0 195.0
Shaftesbury . . . . . . . . .529.5 3.5 537.0 441.2
Anite . . . . . . . . . . . . . . .130.8 5.8 130.8 57.8
Aveva Group . . . . . . . .1678.0 19.0 1799.0 1298.0
Computacenter . . . . . . .318.8 9.1 490.0 292.4
Fidessa Group . . . . . . .1613.0 8.0 2109.0 1439.0
Invensys . . . . . . . . . . . .230.9 5.1 333.9 180.9
Logica . . . . . . . . . . . . . .105.4 -0.5 135.6 59.0
Micro Focus Inter . . . . . .541.5 0.0 550.0 242.9
Sage Group . . . . . . . . . .282.0 1.7 312.4 231.7
SDL . . . . . . . . . . . . . . . .668.0 18.0 756.0 586.0
Telecity Group . . . . . . . .826.5 13.5 827.5 450.5
Aggreko . . . . . . . . . . .2082.0 -3.0 2316.0 1522.0
Ashtead Group . . . . . . .270.9 -1.1 274.1 99.4
Atkins (WS) . . . . . . . . .699.0 13.5 799.0 490.2
Babcock Internati . . . . .884.0 19.5 884.5 570.5
Berendsen . . . . . . . . . . .513.0 10.5 568.0 402.7
Bunzl . . . . . . . . . . . . . .1069.0 14.0 1072.0 676.5
Cape . . . . . . . . . . . . . . .275.0 5.8 591.5 205.0
Capita . . . . . . . . . . . . . .666.0 7.5 767.0 602.0
Carillion . . . . . . . . . . . . .282.1 2.0 387.0 253.5
De La Rue . . . . . . . . . .1023.0 2.0 1024.0 730.0
Diploma . . . . . . . . . . . .453.0 5.0 460.5 284.0
Electrocomponents . . . .213.4 4.1 274.5 182.2
Experian . . . . . . . . . . . .923.5 7.5 998.0 665.0
Filtrona PLC . . . . . . . . . .489.6 5.8 490.5 296.3
G4S . . . . . . . . . . . . . . . .285.4 1.7 292.1 219.9
Hays . . . . . . . . . . . . . . . . .77.5 1.8 104.5 58.9
Homeserve . . . . . . . . . .159.7 6.1 505.5 137.5
Howden Joinery Gr . . . .129.0 0.2 130.8 93.1
Interserve . . . . . . . . . . . .319.1 3.9 341.3 270.1
Intertek Group . . . . . . .2717.0 23.0 2717.0 1744.0
Menzies(John) . . . . . . . .619.5 11.0 652.0 445.5
Michael Page Inte . . . . .388.8 10.8 552.5 323.0
Mitie Group . . . . . . . . . .266.9 4.2 296.7 208.0
PayPoint . . . . . . . . . . . .718.0 9.5 740.0 465.0
Premier Farnell . . . . . . .180.9 4.9 249.0 144.5
Regus . . . . . . . . . . . . . . . .91.4 0.8 117.5 64.0
Rentokil Initial . . . . . . . . .77.0 2.9 95.9 58.2
RPS Group . . . . . . . . . . .212.0 1.5 253.0 156.6
Serco Group . . . . . . . . .549.5 5.5 565.0 458.0
Shanks Group . . . . . . . . .79.2 -0.8 129.8 75.8
SIG . . . . . . . . . . . . . . . . .102.2 0.4 145.2 77.0
Travis Perkins . . . . . . .1020.0 -1.0 1125.0 715.0
Wolseley . . . . . . . . . . .2443.0 50.0 2558.0 1404.0
ARM Holdings . . . . . . . .517.0 6.0 645.0 464.0
CSR . . . . . . . . . . . . . . . .229.7 4.7 321.3 154.1
Imagination Techn . . . .497.8 1.2 717.0 296.9
Spirent Communica . . . .167.4 2.9 174.0 105.8
British American . . . .3341.0 43.0 3347.5 2592.0
Imperial Tobacco . . . .2564.0 60.0 2591.0 1974.0
Betfair Group . . . . . . . .760.0 10.0 901.0 567.0
Bwin.party Digita . . . . .112.0 2.3 174.0 100.6
Carnival . . . . . . . . . . . .2197.0 12.0 2465.0 1742.0
Compass Group . . . . . . .671.5 1.5 674.0 512.5
Domino's Pizza Gr . . . . .516.0 -4.0 526.0 393.1
easyJet . . . . . . . . . . . . .539.5 7.5 543.0 302.5
FirstGroup . . . . . . . . . . .223.1 -10.4 370.2 190.0
Go-Ahead Group . . . . .1235.0 0.0 1598.0 1086.0
Greene King . . . . . . . . .560.5 7.5 561.5 410.0
InterContinental . . . . .1555.0 4.0 1573.0 955.0
International Con . . . . .159.2 0.6 258.7 132.0
Ladbrokes . . . . . . . . . . .155.8 -1.7 181.4 114.0
Marston's . . . . . . . . . . . .104.0 0.0 106.8 84.6
Millennium& Copt . . . .494.5 4.9 517.0 371.2
Mitchells & Butle . . . . . .248.5 -0.1 320.0 215.6
National Express . . . . .216.0 1.9 262.4 180.0
Rank Group . . . . . . . . . .119.0 1.1 153.7 109.5
Restaurant Group . . . . .304.1 0.7 309.7 254.9
Spirit Pub Compan . . . . .48.0 -2.0 62.8 35.3
Stagecoach Group . . . . .274.1 3.7 287.4 220.0
TUI Travel . . . . . . . . . . . .175.1 1.3 231.8 136.7
Wetherspoon (J.D. . . . .421.0 -3.8 449.9 371.3
Whitbread . . . . . . . . .2084.0 -3.0 2088.0 1409.0
WilliamHill . . . . . . . . . .287.4 2.1 288.5 183.3
Abcam . . . . . . . . . . . . .422.0 3.0 460.0 320.0
Advanced Medical . . . . .66.0 0.0 95.0 64.0
Albemarle & Bond . . . .232.8 -2.5 400.1 228.3
Amerisur Resource . . . . .39.3 4.5 40.0 9.5
Andor Technology . . . .380.0 -2.0 685.0 355.0
Archipelago Resou . . . . .50.0 0.0 79.0 49.0
ASOS . . . . . . . . . . . . . .1704.0 -11.0 2406.0 1142.0
Aurelian Oil & Ga . . . . . . .14.5 0.5 71.0 13.9
Avanti Communicat . . .357.0 24.0 436.5 241.3
Blinkx . . . . . . . . . . . . . . .39.3 -0.5 158.0 33.5
Borders & Souther . . . . .65.5 2.5 131.0 43.5
BowLeven . . . . . . . . . . . .59.5 1.3 342.3 53.5
Brooks Macdonald . . .1140.0 0.0 1365.0 940.0
Cluf Gold . . . . . . . . . . . .68.0 0.5 112.8 63.3
Cove Energy . . . . . . . . .269.0 -0.3 270.3 61.0
Daisy Group . . . . . . . . . .95.0 -0.5 126.5 86.0
EMIS Group . . . . . . . . . .607.5 0.0 637.5 397.5
Faroe Petroleum . . . . . .150.0 1.3 177.8 130.0
Gulfsands Petrole . . . . . .89.0 3.0 226.5 82.0
GWPharmaceutical . . . .76.8 0.0 126.0 74.0
H&T Group . . . . . . . . . . .295.5 1.5 395.0 253.0
Hargreaves Servic . . . .780.0 20.5 1264.0 738.0
Healthcare Locums . . . . . .3.1 0.1 3.2 2.8
IDOX . . . . . . . . . . . . . . . . .38.8 -0.3 40.3 20.9
ImpellamGroup . . . . . .345.0 0.0 375.0 225.0
Iomart Group . . . . . . . .148.0 2.0 153.4 93.5
James Halstead . . . . . .530.0 5.0 552.3 410.3
London Mining . . . . . . .199.3 4.5 405.0 185.0
Lupus Capital . . . . . . . . .129.5 0.0 134.5 86.0
M. P. Evans Group . . . . .505.0 5.0 525.0 371.0
Majestic Wine . . . . . . . .465.0 3.0 510.0 315.0
May Gurney Integr . . . .233.0 2.5 302.0 226.0
Monitise . . . . . . . . . . . . .33.0 -0.5 40.0 25.5
Mulberry Group . . . . . .1530.0 23.0 2472.0 1295.0
Nanoco Group . . . . . . . .68.5 1.3 85.8 38.0
Nautical Petroleu . . . . .457.5 -2.0 468.0 223.5
Nichols . . . . . . . . . . . . . .707.3 2.5 732.0 505.0
Numis Corporation . . . . .98.0 0.5 119.6 72.0
Pan African Resou . . . . . .15.5 -0.3 18.3 10.9
Patagonia Gold . . . . . . . .25.5 -0.3 70.0 22.0
Prezzo . . . . . . . . . . . . . . .65.9 0.1 70.0 53.5
Rockhopper Explor . . .288.0 25.0 393.5 141.0
RWS Holdings . . . . . . . .485.0 0.0 560.0 400.0
Secure Trust Bank . . . .1015.0 -10.0 1077.5 755.0
Sirius Minerals . . . . . . . . .16.0 0.3 32.0 7.1
Smart Metering Sy . . . .169.0 0.0 186.5 75.0
Songbird Estates . . . . . .104.0 -5.0 153.0 100.0
Valiant Petroleum . . . .394.0 11.5 603.0 353.5
Young & Co's Brew . . . .610.0 -5.0 712.0 580.0
Vedanta Resources . . . . . . . . . . .961.0 6.1
Aquarius Platinum . . . . . . . . . . .51.0 6.0
African Barrick Go . . . . . . . . . . . .415.5 5.7
Soco International . . . . . . . . . . .325.8 5.3
Centamin (DI) . . . . . . . . . . . . . . . .74.3 4.9
Anite . . . . . . . . . . . . . . . . . . . . . .130.8 4.6
Brown (N.) Group . . . . . . . . . . .259.0 4.2
EnQuest . . . . . . . . . . . . . . . . . . . .114.6 4.1
Homeserve . . . . . . . . . . . . . . . . .159.7 4.0
Rentokil Initial . . . . . . . . . . . . . . .77.0 3.8
Talvivaara Mining . . . . . . . . . . .148.6 -12.6
Avocet Mining . . . . . . . . . . . . . . . .71.3 -7.6
Britvic . . . . . . . . . . . . . . . . . . . . .316.7 -5.3
Man Group . . . . . . . . . . . . . . . . . .70.9 -4.8
FirstGroup . . . . . . . . . . . . . . . . . .223.1 -4.5
Spirit Pub Company . . . . . . . . . .48.0 -4.0
Aberdeen Asset Man . . . . . . . . .255.0 -3.7
Essar Energy . . . . . . . . . . . . . . . .122.1 -2.9
Kingsher . . . . . . . . . . . . . . . . . .281.8 -2.5
Salamander Energy . . . . . . . . . .167.6 -2.3
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 9.000 12 . . . . . .100.76 0.00 108.9 100.0
Tsy 2.500 13 . . . . . . .281.04 -0.05 287.3 280.8
Tsy 8.000 13 . . . . . . .109.53 -0.05 115.7 109.4
Tsy 4.500 13 . . . . . . .102.85 -0.02 106.2 102.8
Tsy 5.000 14 . . . . . . .110.21 -0.10 112.9 110.1
Tsy 4.750 15 . . . . . . . .113.61 -0.18 115.4 111.6
Tsy 8.000 15 . . . . . . .125.91 -0.18 129.2 125.9
Tsy 2.500 16 . . . . . .342.28 -0.21 348.1 330.5
Tsy 4.000 16 . . . . . . .113.74 -0.24 114.7 108.7
Tsy 8.750 17 . . . . . . .139.78 -0.39 141.9 135.8
Tsy 12.000 17 . . . . . . .116.71 -1.09 126.4 115.5
Tsy 1.250 17 . . . . . . . .114.39 -0.32 117.1 110.6
Tsy 5.000 18 . . . . . . .122.23 -0.39 123.6 114.3
Tsy 4.500 19 . . . . . . .121.40 -0.39 123.3 110.5
Tsy 3.750 19 . . . . . . .116.80 -0.44 118.7 104.6
Tsy 2.500 20 . . . . . .365.67 -0.39 373.0 334.8
Tsy 4.750 20 . . . . . . .124.41 -0.43 126.7 111.5
Tsy 8.000 21 . . . . . .153.66 -0.45 156.6 139.6
Tsy 1.875 22 . . . . . . .126.65 -0.55 130.3 115.3
Tsy 4.000 22 . . . . . .119.98 -0.51 122.4 103.6
Tsy 2.500 24 . . . . . .330.35 -0.56 339.0 293.7
Tsy 5.000 25 . . . . . . .132.41 -0.61 135.4 111.7
Tsy 1.250 27 . . . . . . .122.38 -0.81 127.0 109.0
Tsy 4.250 27 . . . . . .124.00 -0.79 127.2 101.9
Tsy 6.000 28 . . . . . .148.96 -0.79 152.7 123.9
Tsy 4.125 30 . . . . . . .313.39 -0.79 322.8 280.9
Tsy 4.750 30 . . . . . . .131.16 -0.89 135.0 107.5
Tsy 4.250 32 . . . . . . .123.18 -0.89 126.9 100.6
Tsy 4.250 36 . . . . . . .122.72 -1.18 127.0 99.8
Tsy 4.750 38 . . . . . . .132.23 -1.31 137.2 108.2
Tsy 4.500 42 . . . . . .128.02 -1.40 133.6 104.3
% %
AUTOMOBILES & PARTS
AEROSPACE & DEFENCE
BANKS
BEVERAGES
CHEMICALS
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXEDLINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER &MULTIUTILITIES
GENERAL INDUSTRIALS
GENERAL RETAILERS
HEALTH CARE EQUIPMETN & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
NON LIFE INSURANCE
LIFE INSURANCE
MEDIA
MINING
MOBILE TELECOMS
NON EQUITY INVESTM. COMM.
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
REAL ESTATE INVEST. TRUSTS
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. &EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
15
MARKETS
T
HERE is a contradiction at
the heart of the Bank of
England, which may be laid
bare today. It is this: the
Bank is above the markets
and yet intimately involved in
them. The twin spheres Sir
Mervyn Kings lofty world of
monetary policy and econometrics
and his deputy Paul Tuckers world
of market-makers, bankers and
brokers occasionally collide. The
results are explosive.
The Banks governor has held up
his hands in horror at the
behaviour of Barclays traders. Sir
Mervyn called it shoddy and
deceitful. The idea that the Bank
might have known about, let alone
sanctioned, any manipulation or
T
HE 2007-8 banking crisis was a
disaster for Londons
international position as a
banking centre. But financial
services is much more than just
banking. It includes areas such as
insurance (in which Londons
position is strong internationally,
though by no means dominant) and
securities and broking in which
London had every prospect of
remaining the worlds leading player.
Even as Asian banks grew, perhaps
replacing now part-nationalised
British banks in the lists of the
worlds greats, those emerging banks
(along with growing large Asian
corporates) would still require
wholesale services which London
was extremely well-placed to supply.
The Libor scandal threatens to end
that hope. Libor co-evolved, from the
mid-1980s, with Londons role in secu-
rities and broking. It is the key refer-
ence rate, internationally, in areas
such as futures contracts, swaps, and
currencies, along with many whole-
sale financial products. As the credit
crunch began in 2007, the term Libor
FLIGHTS STRAIGHT F
FROM 63
ONE
WAY*

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This could turn into
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a reserve currency
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16
WEDNESDAY 4 JULY 2012
ANDREW LILICO
The Libor scandal may destroy the
preeminence of the City of London
entered broader public consciousness,
as the spread between Libor and the
bank rate became the most widely-
known measure of the financial sec-
tors woes.
All around the world, contracts are
normed against Libor. Investors that
would not trust the probity of locally-
determined reference rates that
might be manipulated for political or
corrupt purposes trusted English law,
the honour of English gentlemen, the
culture of my word is my bond, the
reputation of as safe as the Bank of
England, the excellence and integrity
of UK and London regulation.
With the Libor scandal, that is very
probably now gone. Heads are rolling
at Barclays, RBS has fired traders, the
government has announced an offi-
cial inquiry which may yet mean
more heads rolling in more banks
and even the Bank of England has had
its probity impugned. The more heads
that roll, the broader the scandal; the
fewer that roll, the wilder the conspir-
acy theories will get.
The London interbank offered rate
will become a byword for dodgy prac-
tice the word London built into an
irredeemably toxic term.
International investors will develop
their own new reference rates for
financial contracts and those rates
probably wont be in London. If mat-
ters escalate, this could easily turn
into an event of a similar order to the
end of sterling as a reserve currency,
in terms of the impact on Britains
financial role in the world. British
securities and broking could be
sucked into almost as dismal an out-
look of medium-term decline as the
British banking sector.
The symbiotic relationship between
the UK banks and the government of
recent decades has been corporatism
of a quite shameful and indefensible
nature. Implicit bailout promises vest-
ed the positions of major firms, clos-
ing out proper competition and
encouraged lax internal monitoring
and risk management, over-merging
and excessive, dangerous balance-
sheet growth. As tax revenue flowed,
lending exploded and jobs grew, the
industrial policy goals of governments
were met, and the temptation to look
the other way, in terms of lax supervi-
sory control and tax forbearance
appears, all too often, not to have been
resisted.
Bizarrely, however, a common reac-
tion to this cataclysm of mis-regula-
tion and over-involvement of
government in the sector has been to
call for yet more government. How
can so many people continue to fail to
see that excess government bailouts,
cosy relationships leading to supervi-
sory laxity that would not occur in
other less-regulated sectors, and tax
forbearance has been a central root
cause of these problems? It is as if a
man with a terrible hangover thinks
the solution is to get even drunker
once more.
Banking will only achieve probity
when there is true accountability to
the capital providers and the cus-
tomers of banks. And they will only
monitor banks properly when they
are exposed to genuine risk of loss and
there are genuine competitive alterna-
tives. The hair of the dog that bit
you(more regulation) isnt going to
help here, unless your goal is to
restore the cosier-than-thou symbiosis
of finance and the big state. Only the
market can regulate something as
large and important and complex as
financial services. All else is hubris,
delusion, and venality.
Andrew Lilico is chairman of Europe
Economics.
recalibration of Libor is anathema.
If Sir Mervyn passed Bob Diamond
in Threadneedle Street, we are led
to believe, he would struggle to
recognise him.
The truth, I suspect, is more
complex. In fact, the Banks
Markets Division, led by Tucker
from 2002 to 2009, knew all about
Libor and how it operates and,
indeed, when it ceases to operate.
For the latter, when banks decline
to lend to each other in times of
crisis, it was no surprise to anyone
in the Division that it became, in
the jargon, dislocated from
itself.
Nor did such dislocation go
unrecorded in Threadneedle
Street. The Banks Money Markets
Liason Group, a busy cog in the
great machine of the Bank, has
met regularly over the years to
discuss the ups and downs of Libor.
Witness its minutes in September
2009, which recorded errors in
the inputting of Libor
submissions, but that the fixings
would not be recomputed unless
the process as a whole had been
compromised. These are not
minutes with top secret stamped
on them, they record the everyday
business of the Bank.
Or at least part of it. Sir Mervyn
takes a decidedly de haut en bas
view of the markets. He simply
regards them as rather grubby,
one of the Treasurys highest
officials told me recently, leaving
some of his colleagues to fight in
the trenches.
There is, therefore, a disconnect
at the Bank and it is a large one. It
has led to confusion and
misunderstanding in the markets,
in banks like Barclays and its
peers.
The Libor imbroglio is but one
example. Look to the gilts market
for another. The Banks mighty QE
programme was unleashed in
March 2009 with barely any
consultation with gilts traders, let
alone with the Debt Management
Office. The results: utter chaos on
the first days trading, followed by
naked market manipulation which
created artificial spikes in the
market. The Bank saw everything
and did nothing. Whether Libor,
gilts or, indeed, gold, the Bank
needs to decide where it stands in
the market and whether it takes
responsibility for some of its
mistakes.
Dan Conaghan is the author of The
Bank Inside the Bank of England
(Biteback Publishing). He has worked in
the City for the past 15 years, latterly in
the bond market.
AGAINST
THE GRAIN
DAN CONAGHAN
The paradox at the heart of the Bank of England is now clear for all to see
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17
The firing line
There is no doubt that an inquiry is called for in
the Libor manipulation saga, but the fines
should be targeted at the dealers and the man-
agement, not the banks. Shareholders did not
have a say in the internal dirty dealings, nor did
they share much of the loot. Bonuses mostly
went to the staff. Remember who the ordinary
investors are: Isa-holders, pension funds and
insurance companies. Also, the government
should come out and say to the world that the
crimes happened in the UK and punishment will
be meted out by local judiciary according to the
law here. We already have two zombie banks in
the UK (a third one is not in our interest). We
and the rest of world were financially crippled
by the US credit crunch. Did the yellow UK gov-
ernment prosecute or fine the culprits? No. So
the UK government should either stand up and
fight or resign.
Dave Mahendra
Hadrians Wall
[Re: Would a vote for Scottish independence
be boon for its businesses?, yesterday]
Stewart Hosie MP argues that the SNP should
be able to set Scottish corporation tax at 20 per
cent to encourage further investment in
Scotland. However, in the 2012 Budget, the rate
of corporation tax was reduced to 24 per cent,
and is being lowered further to 22 per cent by
2014. How much lower would the SNP go?
There is no need to divide tax liabilities and tax
assets between the jurisdictions in relation to
UK tax. Many companies, especially retailers,
have multiple purchasing, processing, and sell-
ing across the UK. If a different tax system were
introduced firms would need to comply with
two different sets of rules. Thus, a reduction in
corporation tax could actually increase the
absolute tax burden for businesses across the
entire country.
CalumCrichton
I
N 2011, the Serious Fraud Office
(SFO) decided not to investigate
allegations concerning Libor
manipulation. At that stage,
one reason was that it did not
have the necessary resources to
take on such an investigation.
Although the FSA has conducted its
own investigation, the results of
which will have been passed to the
SFO, the emphasis of the FSA
investigation has been regulatory
in nature rather than criminal.
Any criminal investigation is like-
ly to be complex. The prospect of
criminal proceedings under the
market manipulation provisions of
the Financial Services and Markets
Act (FSMA) 2000 is limited, as the
Libor rate is not a qualifying invest-
ment. So the investigation may
have to focus on offences under the
Fraud Act 2006 and the Theft Act
1968, both of which, unlike FSMA,
require proof of dishonesty.
The knock-on effect of Barclays
contact with the Bank of England
in 2008 is difficult to gauge.
However, it would appear to provide
a basis for those involved to assert
that they believed that their activi-
ties had been sanctioned by the
authorities and that they were not
therefore behaving dishonestly.
Much will depend on whether the
evidence reveals that this featured
at all in the minds of those
involved.
So negating assertions that it was
common practice and sanc-
tioned by the authorities and
therefore not dishonest may be dif-
ficult. A further difficulty is likely
to be establishing who in the chain
of command knew what and when.
Those higher up may assert that
they were unaware of the full
extent of what was happening in
particular that Libor was being
manipulated for profit, whereas
TOP TWEETS
No one in the world I admire more than my dad.
16 years building Barclays. Shame to see the mis-
takes of a few tarnish the hard work of so many.
@NellieDiamond
CEO of a global bank is one of those jobs thats
much harder to get than it is to do.
@ReformedBroker
Barclays CEO resigns but investigations and law-
suits are industry wide, the question is whos
next?
@Gemma Godfrey
So central banks manipulate interest rates? Say it
isnt so.
@ZeroHedge
Is it right that Barclays should be taking
all the flak for the Libor-fixing scandal?
YES
Barclays is getting its comeuppance. Where people break the
regulations of their industry or the law of the land then they
should face the appropriate punishment. We dont know how
deep the rot is the question is how to find out? Because while
Barclays, and maybe others, did it, it was at best with politicians
turning a blind eye, at worse creating a regime which in essence
encouraged such cheating. And here we get to the heart of the
problem. For three decades, financialised capital in the UK has
become so powerful that it has pulled the strings of the
politicians. So how can the puppets now investigate the puppet
masters? Only an independent and public inquiry can get to the
truth. If that happens, the City will never be the same again. That
is why such an inquiry will be resisted.
Neal Lawson is chair of the pressure group Compass and author of
the book All Consuming.
Neal Lawson
NO
Tim Ambler
The focus on Barclays is because it was the first to settle, but it
wont be the only culprit and we will have to find out what
happens next. Certainly, Barclays management and compliance
team deserve the flak they are getting, but the regulators should
be under fire too. The City press have expressed concerns about
the Libor-setting process for years all through the 2008 crisis
they carried rumours of misleading rate reporting. In 2008, Sir
Mervyn King was alarmed enough to press for changes, but gave
up because the Bank of England did not have regulatory
responsibility. How did the FSA miss all that and fail to
investigate in a timely fashion? It seems a case of the same
regulatory inattention and inactivity that allowed the 2008 crisis
to develop. When you leave the keys in the front door, you
cannot wholly blame the burglar.
Tim Ambler is a senior fellow of the Adam Smith Institute.
RAPIDresponses
A leading barrister
considers the case
for prosecutions
those lower down may say they
believed their activity had been
approved from on high.
There may well be a distinction to
be drawn between those at the coal
face and those higher up the chain
of command. The email traffic
between the derivatives traders and
those responsible for the submis-
sion of Barclays interest rate data
to the Britsh Bankers Association
(BBA), identified in the FSA report,
would appear to provide good
grounds for a criminal investiga-
tion. Under Section 2 of the Fraud
Act 2006, a person is guilty of the
offence of fraud by false representa-
tion if he dishonestly makes a false
representation thereby intending
to make a gain for himself or anoth-
er or to cause loss to another or to
expose another to the risk of loss.
There would appear to be little
doubt that the representations
made to the BBA were false. The
nature and tone of the emails
would be key in determining
whether those involved were behav-
ing dishonestly. However, without
similar documented exchanges,
those higher up may well be able to
successfully maintain that they
genuinely believed that the manip-
ulation of Libor had been sanc-
tioned by the authorities.
Any investigation is likely to start
at the centre of the wrong-doing
and then work its way upwards.
Andrew Oldland QC is partner at
Michelmores LLP and has conducted a
number of prosecutions for the SFO.
WEDNESDAY 4 JULY 2012
ANDREW OLDLAND
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7 9 6 9 7 9 8
4 2 3 1 6 2 1 3
8 9 8 4 5 7 9
1 5 5 7 2 1
5 7 9 8 1 3 4 2
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2 6 1 4 9 3
7 8 6 9 4 3 7
1 9 4 3 5 1 2 7
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The nine-letter word was
UPHOLDING
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
WEDNESDAY 4 JULY 2012
WHEN I GET OLDER
BBC1, 9PM
Two-part documentary in which
famous pensioners move in with other
OAPs to learn about the difficulties
they face.
RIVER COTTAGE: THREE GO MAD
CHANNEL 4, 8PM
Actress Felicity Kendal and Ashes to
Ashes stars Philip Glenister and Keeley
Hawes take part in a two-day cookery
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NCIS
CHANNEL 5, 9PM
The agents investigate the death of a
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discover the chief suspect died days
before his apparent victim.
TVPICK
IN BRIEF
Chambers makes Olympics cut
nOLYMPICS: Sprinter Dwain
Chambers, a former drugs cheat, has
controversially been selected in Team
GBs athletics squad for London 2012.
Among those joining him is Jessica
Ennis, Mo Farah, Phillips Idowu, Dai
Green and Christine Ohuruogu.
Sagan wins his second Tour stage
nCYCLING: Peter Sagan yesterday
won the third stage of the Tour de
France, his second of the race. The
Liquigas rider won the 197km stage
from Orchies to Boulogne-sur-Mer to
add to his first-stage victory.
Murray: Ive got
the edge over
Ferrer on grass
Batsmen will
inspire England
to series win
E
ngland face Australia at
Edgbaston today with the
momentum in this one-day
international series. If they can
triumph again then theyll know
theyre on their way to a series win.
If they take a 5-0 victory, they
overtake Australia as the worlds top
one-day side, but talk of a whitewash
remains premature. This isnt a bad
Australian team theres no
such thing.
Pat Cummins was impressive and
now cant play because of a side
strain, but theyve still some decent
cricketers. David Warner and Shane
Watson are a very strong partnership
and Michael Clarke is as good a one-
day player as there is in the world.
If England can win today, then
they can start thinking about a 5-0
win, but its a hard game to call,
particularly as weve a few injury
doubts. The one thing weve seen this
summer is that in England, in
English conditions, our boys are very
hard to beat and theyre really
going to be up for it.
Jimmy Anderson is a key player
and I dont think England will take
any risks with his groin strain,
particularly with them two-nil up
and with South Africa coming over in
a few weeks. Its important they look
after him. Jade Dernbachs proved a
handy player but I dont think his
absence will weaken the team.
Everyone was saying Kevin
Pietersens retirement from the one-
day game was going to affect England
but Ian Bell, Eoin Morgan and Ravi
Bopara have batted magnificently,
England are a very strong batting
side and its that thats going to win
them this series.
Andy Lloyd is a former England Test
cricketer who captained, and then later
acted as chairman of, Warwickshire.
CRICKET
COMMENT
ANDY LLOYD
British No1 Andy Murray is yet to advance beyond the semi-finals at Wimbledon
WEDNESDAY 4 JULY 2012
19
SPORT
cityam.com/sport
BRITISH No1 Andy Murray insists
that playing on Wimbledons grass
surface could make the difference
for him today as he anticipates a
difficult quarter-final contest against
Spains David Ferrer.
Seventh seed Ferrer defeated
Murray 6-4, 6-7 (7-3), 6-3, 6-2 in the
last eight of last months French
Open but the Scot believes that the
clay courts of Roland Garros gave
him an advantage that he today will
not have, even though the world No5
was convincing throughout his
impressive 6-3, 6-2, 6-3 victory over
former US Open champion Juan
Martin del Potro yesterday.
Id rather not play [Ferrer] on a
clay court because its a surface that
Ive struggled against him on, said
Murray, who also yesterday won with
a 7-5, 6-2, 6-3 dismissal of Croatias
Marin Cilic, despite the interrup-
tions brought by rain.
But on the other surfaces Ive
played some good matches against
him. Tough matches, but good. Ive
won against him a few times.
Hopefully I can do the same.
Murray has so far avoided seriously
aggravating the back injury that
undermined him during that loss to
Ferrer, but he regardless remains
wary of the threat of fatigue. After
beating Marcos Baghdatis in
Wimbledons latest ever finish on
Saturday night, his rest on Sunday
was followed by playing against
Cilic both yesterday and on Monday
because of the interruptions
brought by rain; today represents
his third consecutive day
without recovery.
Its not just me theres lots of
guys in exactly the same position,
he said. Anyone will tell you if you
play four matches in eight days, its
better than playing four matches in
five or six days. The more rest you can
get the better, but its part of playing
grand slam tennis.
Often its happened to me in the
past at the US Open where theres
been a backlog of matches. Its not
going to be the only time it happens
here, either.
Should Murray succeed in defeat-
ing Ferrer he will have equalled his
best ever performance at Wimbledon
by reaching the final four, but in this
instance his hopes of reaching the
final may be greater as a consequence
of Rafael Nadals stunning early elim-
ination. Awaiting in the semi-final
will be the winner of Jo-Wilfried
Tsonga versus Philipp Kohlschreiber,
the former also winning yesterday
with a 4-6, 7-6 (7-4), 6-4, 6-4 win over
Americas Mardy Fish.
In the womens tournament,
American sixth seed Serena Williams
overcame defending champion Petra
Kvitova in a 6-3, 7-5 victory and,
despite impressing in doing so,
remained adamant that she needed
to improve if she was to win her fifth
Wimbledon title. If I want to win
the title, I have to step it up,
Williams said.
Victoria Azarenka, meanwhile,
defeated Tamira Paszek 6-3, 7-6 (7-4).
BY DECLAN WARRINGTON
Spurs to let Villas-Boas spend
TOTTENHAM chairman Daniel Levy
will back new manager Andre Villas-
Boas in the transfer market as the
North London club aim to secure a
return to the Champions League.
Villas-Boas yesterday signed a
three-year contract to succeed the
sacked Harry Redknapp at White
Hart Lane and, Levy has confirmed,
will be given the funding necessary
to achieve the boards aspirations.
Andre shares our long-term
ambitions and ethos of developing
players and nurturing young talent,
and he will be able to do so now at a
new world class training centre,
he said.
We are constantly looking to
move the club forward. It is
important that we now look to
develop the potential within the
squads at all levels, whilst
strengthening the first-team in the
summer in key positions with
players who will become part of the
future success of the club.
Ajax defender Jan Vertonghen and
Hoffenheim midfielder Gylfi
Sigurdsson are expected to be the
former Chelsea managers first
signings, particularly if Spurs can
beat Liverpool to the latters
signature, though any joy at their
arrivals is potentially offset by the
uncertainty surrounding the future
of the influential Luka Modric, even
if Villas-Boas is optimistic about the
ability of the squad he has inherited.
I have had several discussions
with the chairman and the board
and I share their vision for the
future progress of the club, the
Portuguese manager said. This is a
squad any coach would love to work
with and together I believe we can
bring success.
BY DECLAN WARRINGTON
Representing my country in an
Olympics is a privilege that should
never be taken for granted
Team GBs Dwain Chambers on his selection for London 2012

Results
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TODAYS HIGHLIGHTS
Mens singles
nD Ferrer [7] v A Murray [4]
nR Federer [3] v M Youzhny [26]
nN Djokovic [1] v F Mayer [31]
nJ Tsonga[5] vPKohlschreiber [27]
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