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regulated by the French Autorité de Contrôle Prudentiel (Prudential Control Authority) and Autorité des Marchés Financiers (Financial Markets Authority). Societe Generale is subject to limited regulation by the UK Financial Services
Authority («FSA») for the conduct of its business in the United Kingdom. Details of the extent of its regulation by the FSA are available from us on request. Societe Generale benefits from the EC passport authorising the provision of
certain banking and investment services within the EEA. This material has been prepared solely for information purposes and does not constitute an offer from Societe Generale to buy or sell any securities or financial instruments,
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Issue 1,356 Monday 4 April 2011
VODAFONE SELLS
£7BN SFR STAKE
TELECOMS
▲
BY DAVID CROW
VODAFONE last night agreed to sell
its stake in SFR, France’s second-
largest mobile operator, to Vivendi for
€7.95bn (£7bn) in cash and said it
would return £4bn to its sharehold-
ers.
The British mobile giant’s 44 per
cent stake was valued at €7.75bn and
it will receive a final dividend of
€200m once the transaction is com-
pleted within the next three months.
Vodafone said £4bn of the proceeds
would be returned to investors via a
share buyback, with the remainder
being used to pay down its debt pile.
Sources close to the firm said
Vodafone boss Vittorio Colao had
extracted a “good price” during nego-
tiations that ran into yesterday
evening.
Last month, Vivendi indicated that
it would be unwilling to pay anything
north of £6bn for the 44 per cent of
SFR it does not already own.
The deal implies an enterprise
value for SFR of around 6.7 times
earnings before interest, taxation,
depreciation and amortisation
(Ebitda) – higher than the 5.5 times
that is the norm for European tele-
coms companies.
Colao said the decision to sell SFR
was in keeping with his strategy of
“realising maximum value from
[Vodafone’s] non-controlled assets”.
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Vodafone chief executive Vittorio Colao has been selling off the mobile giant’s non-core assets
He added: “The sale of our stake in
SFR, at an attractive multiple, repre-
sents a significant further step in the
execution of this strategy.”
Vodafone’s holding in SFR con-
tributed £573m to its adjusted operat-
ing profit in the year to 31 March
2010, and £284m in the six months to
30 September 2010.
The pair also hammered out the
NASDAQ ▲2,789.60 +8.53
www.cityam.com
terms of a new two-year commercial
partnership that will enable
Vodafone customers to use SFR signal
when in France.
Vodafone, which has already sold
its minority interests in China and
Japan, is now likely to turn its atten-
tion to divesting its Polish assets.
Analysts estimate its 24.4 per cent
stake in Poland’s Polkomtel could be
£/$ 1.61 ▲+0.01 £/¤ 1.13 unc ¤/$ 1.42 unc
P25
worth about €1bn.
Meanwhile, Vivendi said it would
be able to hike its dividend thanks to
the extra profits it will book follow-
ing completion of the deal.
Last week, Vodafone bought Essar
out of its Indian venture for $5bn, in
a move that paves the way for an
eventual flotation of the firm, accord-
ing to sources close to Vodafone.
NORTH SEA
TAX RAID
CENTRICA SAYS IT
COULD MOVE RIGS
ELSEWHERE P3
FREE
Elliott piles
pressure on
UK targets
▲
FUND MANAGEMENT
BY ALISON LOCK
ACTIVIST hedge fund Elliott Advisors
has stepped up its assault on two UK
companies after garnering the support
of extra shareholders.
At National Express, where it has
built up a 17 per cent stake and called
for a shake-up of strategy, it is expected
to receive the backing of the transport
group’s largest shareholder, Spain’s
Cosmen family.
The Cosmen family, a major investor
in National Express since 2005, holds a
20 per cent stake but has not publicly
backed the board.
Sources close to National Express
told City A.M. the family “has been a
long term supporter of the company”
and it “remains to be seen” which side
of the debate it will support.
Meanwhile, at Alliance Trust, where
Elliott recently bought a three per cent
stake, stockbroker Brewin Dolphin is
set to meet management tomorrow to
persuade it to discuss its share price
performance, which trades at a dis-
count to the firm’s net asset value.
Elliott has not yet demanded any
changes at Alliance Trust, which man-
ages £2.4bn of funds, but in February
Laxey Partners, another activist fund
with a 1.3 per cent stake, called for a
control mechanism to reduce its gap-
ing 17-20 per cent share price dis-
count.
Brewin Dolphin is said to be repre-
senting shareholders that own a com-
bined four per cent of the firm’s stock,
who all want the firm to shake up its
strategy.
Certified Distribution
31/01/11 - 27/02/11 is 107,265
 2 News
Wall St fuelling new dot.com bubble
EDITOR’S LETTER
ALLISTER HEATH
WITH the benefit of hindsight, bub-
bles are shockingly easy to spot. From
Dutch merchants staking fortunes on
the price of tulip bulbs to Chinese
investors fighting for empty proper-
ties, the idiocy is always self-evident –
eventually. At the time, however, it
seems to make perfect sense to throw
good money after bad. Somewhere
deep in their psyche, human beings
want to delude themselves that the
world really is different this time, that
they are just that much cleverer than
everybody else and that eternal eco-
nomic laws no longer hold.
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
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Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
UNITED ANGER AT EU CARBON RULE
The European Union’s plan to pull
almost every leading airline into its
scheme to limited carbon emissions
is so “beyond the pale”, that a foreign
government is certain to challenge it,
according to the head of the world’s
largest airline by passenger traffic,
the newly merged United
Continental Holdings.
ALCHEMY FUND EYES DISTRESSED
COMPANIES
Buy-out group Alchemy has raised
the largest fund to target financially
troubled European companies since
the financial crisis. The move will tap
into demand from investors anticipat-
ing new opportunities as the region’s
banks offload assets to deflate their
vast balance sheets. While fundrais-
ing remains challenging for the pri-
vate equity industry in the wake of
Lehman Brothers’ collapse, the move
Unfortunately, such sentiments are
invariably and depressingly wrong.
Hence why I worry – and why my
own bubbleometer starts flashing red
– when I see that Groupon, a two and a
half-year old US website which spe-
cialises in digital coupons and dis-
counts, is being valued by its backers
and advisers at $15bn-$25bn. This can’t
be right. Wall Street venture capital-
ists, investment bankers and fund
managers are getting carried away
again. In many cases, they are right to
be excited – the new generation of tech
start-ups are generating lots of rev-
enues. They are closer to Google and
Amazon than to the duds launched
during the 1990s dot.com bubble.
There are a great group of viable small-
er firms in the UK too, based around
London’s Silicon Roundabout (see p25).
But that doesn’t mean that all sense of
proportion should be lost.
In 1999, when the dot.com bubble
was at its most extreme, 308 tech firms
floated in the US, netting Wall Street a
cool $1.3bn in fees. Morgan Stanley cal-
All eyes on ECB
after debt sale
EUROZONE ECONOMY
▲
BY JULIAN HARRIS
THE European Central Bank (ECB)
will today reveal if it intervened in
the Portuguese debt sale at the end of
last week, when €1.645bn (£1.45bn) in
short-dated bonds were sold.
The sales came with a yield of 5.793
per cent -- below the secondary mar-
ket level of seven per cent, but 2.5 per
cent higher than Portugal paid at
auctions of similar bonds last year.
While the sale raised cash, analysts
point to high borrowing costs and
tumbling confidence in the peripher-
al Eurozone state, which is edging
closer to a bailout.
Prime Minister Jose Socrates’ resig-
nation, following parliament’s rejec-
tion of his latest austerity package,
has sparked a snap election to be held
on 5 June.
highlight investor’s interest in profits
that can be made in near-bankrupt
companies.
CHINALCO PLEDGES TO KEEP STAKE IN
RIO TINTO
Chinalco, the Chinese aluminium
group, has quashed speculation that
it plans to sell down its stake in Rio
Tinto, saying it views the mining
group as a key strategic partner in its
expansion overseas. The Chinese
group is still Rio’s largest shareholder.
OIL PRICE RISES WILL HIT ROAD
REPAIRS
The UK will struggle to foot the bill of
repairing its weather-damaged road
network as soaring oil costs spark con-
cerns about the price of building mate-
rials. In a series of letters obtained
by the Financial Times, the world’s
largest asphalt and concrete suppliers
warn customers about the likely
impact high oil prices and ongoing
unrest in the Middle East will have
on costs.
culates that the combined valuation of
the 24 largest US tech firms floated
that year was $70.96bn. Since then, the
world has changed radically and for
the better for tech firms. But it is never-
theless ominous that the four biggest
new dot.coms on the block – Facebook,
Twitter, Zynga and Groupon, all pri-
vately held – are being valued at a com-
bined $79-89bn.
Facebook, valued at $50bn, is the
dominant member of this new genera-
tion of firms. It may even eventually be
worth its price tag given its surging
revenues – but that assumes it retains
its market share. Twitter is being val-
ued at $4.5bn; it remains to be seen
how good it will be at generating rev-
enues and profits. It could thus easily
be over-valued. Zynga, a social games
developer, was founded in July 2007. It
has already raised $219m, is seeking
$500m more and employs 1,300 peo-
ple. It expects revenues to reach $1.8bn
and to make $630m in profits in 2011.
The site is now valued at $10bn, which
would not be that expensive if these
Meanwhile, the International
Monetary Fund (IMF) has vehemently
denied suggestions that it was pri-
vately pressing troubled Greece to
restructure its debt.
“The IMF supports the Greek gov-
ernment’s position of no debt restruc-
turing and its determination to fully
service its debt obligations,” an IMF
spokeswoman said.
Greece and Ireland can both sus-
tain their governments’ debts, Klaus
Regling, head of the European
Financial Stability Facility, said last
week.
Troubled Portugal
faces a snap election
on 5 June, after Prime
Minister Jose Socrates’
resignation
GLENCORE’S $14M BONUSES FOR
TRADERS LEAVE BANKS IN SHADE
Glencore paid its senior traders more
than $900m (£558m) in bonuses last
year, giving them an estimated aver-
age pay-out of $14m each, dwarfing
most City bonuses. The Swiss com-
modities trader is understood to have
told its bondholders that the basic pay
of senior staff totalled $146m last year,
with a further $938m in bonuses.
JAPANESE PARTS SHORTAGE
THREATENS HONDA IN SWINDON
Honda has drawn up plans to halt
production at its factory in Swindon
as the economic aftershocks of
Japan’s devastating earthquake and
tsunami begin to reach Britain. The
Japanese carmaker, which employs
3,000 staff at the Wiltshire plant, has
been hit by a parts shortage, includ-
ing sat-navs and essential electronic
components.
profit numbers turn out to be correct
(which of course is not certain).
Groupon has turned down a $6bn
offer from Google. It is being valued at
around $15bn, having raised $1bn, and
hopes to eventually float for $25bn. Its
revenues seem to have been $750m in
2010; the firm hopes these will reach
$3bn-$4bn this year. But given that its
competitors may be able to replicate its
technology, such growth rates could
easily turn out to be fanciful.
The internet has come of age. One
reason why British retailers are suffer-
ing so much is because shoppers are
migrating from bricks and mortar. But
many investors are getting carried
away again. Some of these tech firms
will be huge; others won’t. Even the
successful ones may be worth only half
or a quarter of what their bankers are
pushing for. This is not like 1999 all
over again – but this new frenzy is not
entirely rational either. We don’t need
hindsight to tell us that.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Lloyd Blankfein saw his 2010 bonus double after a challenging year
Blankfein’s bonus doubles
BANKING
▲
BY JENNY FORSYTH
GOLDMAN Sachs doubled its chief
executive Lloyd Blankfein’s annual
bonus for 2010, awarding him $18m
(£11.2m) in cash and shares.
Blankfein received the pay-out,
which included $5.4m in cash and
restricted shares valued at $12.6m,
after a rollercoaster year for the bank.
He steered Goldman through the
twin challenges of weaker trading
and a $550m fine to settle civil
THOMAS THE TANK SUITORS QUESTION
$1BN VALUATION
A sale of the famous train’s owner has
begun, with information memoran-
dums being sent out by Bank of
America Merrill Lynch last week.
When it emerged last year that a sale
was in the offing, sources close to Hit
and its private equity owner Apax said
they hoped to sell the company for up
to $1.5bn. Sources close to one poten-
tial bidder said Apax wants $1bn for
Hit, but the group plans to offer near-
er $600m.
MORE THAN 1.5M “LOSE OUT” ON
UNIVERSAL STATE PENSION
More than 1.5m people will lose out if
a universal state pension is intro-
duced, experts warned. The new flat
rate is expected to be unveiled by the
Government next week and will bring
to an end the current system. The flat
rate of £155 will start around 2015.
CITYA.M. 4 APRIL 2011
NEWS | IN BRIEF
Ronson in petrol station bid
Veteran property developer Gerald
Ronson is one of a consortium of
investors in exclusive talks to buy
around 800 UK petrol stations from
Total. The consortium includes Snax 24,
the retail chain founded by Ronson,
Investec and investment group
Grovepoint Capital. The petrol stations
comprise about 10 per cent of the mar-
ket. The deal comes as oil majors look
to back out of retail operations and
focus on oil and gas production.
Interpublic has Facebook stake
Advertising group Interpublic has
emerged as a shareholder in Facebook.
The company’s stake in the social net-
work is valued at between $200m
(£124m) and $300m. Interpublic is
said to own slightly less than half a per
cent in Facebook and paid less than
$5m for it in 2006. Interpublic won
the right to invest in what was then an
emerging site by commiting to spend
$10m of it clients’ cash on Facebook.
Based on a recent valuation of
Facebook at a staggering $50bn, the
Interpublic stake of 0.4 per cent would
be worth around £200m.
Picture: REUTERS
charges from the US Securities and
Exchange Commission. His salary for
2011 has been increased to $2m from
$600,000 in 2010.
Goldman’s board said executive
pay was based in part on how well the
bank performed in comparison to
competitors.
“Our performance over the last
three-year period was strong, particu-
larly in relation to our competitors:
Bank of America, Citigroup,
JPMorgan Chase and Morgan
Stanley,” the bank said.
RANDOM HOUSE ADDS VIDEOGAME
PARTNER
A year after venturing into the
videogame business, Random House
has struck a collaborative deal with
game producer THQ in a bid to gain
traction. The two companies said they
intend to create a wide spectrum of
original works that include novels,
graphic novels and digital books, as
wells as online, console and mobile-
phone games. Hollywood may partici-
pate as well.
NASDAQ BATTLES FOR BIG BOARD
Igniting a battle for control of the
New York Stock Exchange, a team led
by Nasdaq launched an $11.3bn bid
for the Big Board aimed at sinking a
German rival’s offer to buy America’s
most storied stock exchange. Nasdaq
OMX and IntercontinentalExchange
announced Friday an unsolicited bid
that tops Deutsche Börse’s offer.
CITYA.M. 4 APRIL 2011 News 3

BP returns to
Oil firms may
ANALYSIS | HOW NORTH SEA MARGINAL TAX RATES COMPARE

UK Gulf of Mexico
move rigs out
The highest tax rate
is levied on oil fields
developed before
1993, which must
well drilling
pay an extra 50 per
cent petroleum rev- NORWAY

of UK waters
ENERGY

▲
enue tax
Marginal tax rate:
BP PLANS to return to deepwater oil

78%
Substantial incentives
production in the Gulf of Mexico
this summer – just over a year after
the Transocean oil spill disaster,
sources told City A.M. yesterday.
offered. Rate has been It reached a deal with US regula-
▲

ENERGY “We are assessing the impact of the stable for decades tors to enable the oil major to
BY ALISON LOCK proposed tax increase on all of our
UK resume drilling work on ten wells
operations and projects that we have Marginal tax rate: halted since the explosion and oil

62-81%
MAJOR UK oil and gas firms are draw- in our plan and that includes the spill from its Deepwater Horizon rig
H
ing up plans to move their drilling £700m investment,” he said. in April 2010.
rigs out of the North Sea’s British Michael Tholen, economics and The Gulf of Mexico wells are all in
waters to avoid punitive changes to commercial director at UK Oil and Rate has been increased deep water but will be drilled purely
the tax regime, City A.M. has learned. Gas, said rigs could be easily moved three times in the to maintain or supplement oil pro-
British gas owner Centrica and oth- across borders by tug boat or internal past nine years duction to existing platforms.
ers are considering plans to move rigs engines and linked to new pipelines. Sources close to BP told City A.M. it
out of UK waters to Norwegian and “It is wholly understandable that was “looking to resume drilling”
Dutch areas of the sea to avoid a 12 companies which have operations in there as a number of other compa-
per cent hike in oil production taxes. both the UK and the Netherlands THE NETHERLANDS nies had already done so. But it has
Centrica told Treasury officials and may now switch investment abroad,” agreed to tough new regulatory over-
government ministers at meetings he said. Marginal tax rate: sight including allowing US govern-
last week that it is also reconsidering
£700m of new North Sea investment
it announced only in February.
Sources close to Centrica told City
ANALYSIS l Centrica
350
p 330.20
1 Apr
50%Stable for
ment officials 24-hour access to its
operations there, and agreed to meet
strict safety standards.
It has also called a last-ditch tribu-
A.M. that “a number of companies are 345 two decades nal hearing today to try to save its
looking at their options” and that 340 $16bn (£11.2bn) share swap deal with
they could “refocus their production” 335
Russia’s Rosneft.
in the region if the tax was imposed. Even if the share swap is allowed
330
A Centrica spokesman said no deci- to proceed, the pair have already
sion had been made on moving rigs 325 been forced to put their Arctic explo-
out of UK waters but said the firm 320 ration plans on ice after BP’s Russian
was “assessing the impact” of the tax 315 partners in TNK-BP objected to the
raid. ANALYSIS l Centrica
350

345
340

335
330
325
320
315
p

10 Jan 28 Jan
330.20

28 Feb
1 Apr

29 Mar
10 Jan 28 Jan 28 Feb 29 Mar deal.

NORWAY
Marginal tax rate:

78%
Substantial incentives
offered. Rate has been
UK stable for decades
Marginal tax rate:

H
62-81%
Rate has been increased
three times in the
past nine years

THE NETHERLANDS
Marginal tax rate:

50%Stable for
two decades

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bond with a sky
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5 year fixed rate savings bond

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Conditions apply. Rates correct at time of going to press 01/04/2011. Gross rate: Is the rate of interest payable before the deduction of income tax. Interest is payable gross to non-taxpayers subject to their providing the required
certification. Please note: This bond does not meet the criteria for a Qualifying Time Deposit (see clause 5 of the Barclays Savings Bond Terms and Conditions) and income tax will be deducted at the lower rate, but may be
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 4 News CITYA.M. 4 APRIL 2011

Commission
mulls higher
capital ratios
▲

BANKING tions like payments off into a separate

BY JULIET SAMUEL subsidiary with its own capital. The
idea would be to keep essential retail
BRITISH banks are braced for a week functions going for a period even if
of share price volatility as the the bank has collapsed.
Independent Commission on Banking Another possibility is a forced sepa-
(ICB) readies its interim report for pub- ration of retail and wholesale banking Barclays chief Bob Diamond, RBS chief Stephen Hester and HSBC chief Stuart Gulliver are awaiting the findings of the commission
lication next Monday. into separately capitalised sub-
The best outcome for banks could sidiaries. TURNING UP THE HEAT ON BANKS | THE COMMISSION’S OPTIONS
be a deal that allows them to avoid The industry is also preparing for a
splitting up their operations if they raft of measures on the competitive- STAY COOL NEW CAPITAL GEOGRAPHICAL FUNCTIONAL GLASS-STEAGALL
hold more capital, with sources close ness of retail banking. One industry “Do nothing” is the only INSTRUMENTS SUBSIDIARISATION SUBSIDIARISATION BREAK UP
to the commission suggesting that source said that, as far as the ICB is option more unlikely than a Banks might have to Forcing banks to split Splitting up wholesale All but ruled out by
capital ratios will form a core part of concerned, the competition issue is
the report released next week. “the dog that hasn’t barked”.
full-scale bank break-up use co-cos or bail-in their business over and retail banking but John Vickers; would
ICB chair John Vickers has already bonds to encourage national lines, as keeping them under the split ownership of retail
suggested that hiving off different ANALYSIS l Royal Bank of Scotland investor supervision HSBC does already same ownership and wholesale banking
business lines from one another could 50
p
have the same effect as holding a larg-
er cushion of capital at group level: “If 42.34
1 Apr
the probability and/or impact of bank 46
failure... can be reduced by forms of
separation between banking activi-
ties, then so too might capital require- 42 LIVING WILL HIGHER GROUP CAPITAL OPERATIONAL SUBSIDIARISATION
ments,” he said in January. Banks will have to Instead of splitting up banks, Hiving off essential ops like payments
The committee is also mulling tools draw up a plans for an they could be given the choice systems to keep them running for a
to make it easier to unwind failing 38 orderly bankruptcy to simply hold more capital period after a bank’s collapse
banks, such as splitting core opera- 10 Jan 28 Jan 17 Feb 9 Mar 29 Mar
CITYA.M. 4 APRIL 2011 News 5

SMEs able to appeal

A report from the
Treasury select
committee, chaired
by Andrew Tyrie (l),
said Santander’s

refused loan requests

purchase of RBS
branches was a
missed opportunity
for improving high
street banking
competitiveness

Picture: Micha ed attacks from politicians who say

▲
BANKING
Theiner/City A.M. BY HARRY BANKS
BANKS who turn down loan requests
from small businesses (SMEs) will have
their decision reviewed by a rival
lender, as part of a new appeals
process designed to boost credit to
SMEs.
The banking sector hopes the new
regime will help repair its image,
which has suffered the face of repeat-
banks are starving SMEs of cash.
Banks claim they are lending to as
many healthy SMEs as is possible but
that the demand is not there, as firms
undergo an often painful process of
de-leveraging.
Under the new process, SMEs will
learn the result of their appeal within
30 days and banks will have to offer
guidance on alternative sources of
finance, such as equity financing.

Banks reject
claims over
competition
Other large banks also dismissed
▲

BANKING
BY JULIET SAMUEL
SANTANDER UK has rejected a sugges-
tion by MPs that its purchase of 318
RBS branches last year was a “missed
opportunity” to improve the competi-
tiveness of high street banking in
Britain.
“'The deal to buy the RBS branches
was approved by the EU. Santander is a
challenger bank in the UK, not an
incumbent,” a spokesman for the bank
told City A.M., objecting to the commit-
tee’s decision to group Santander UK
with Britain’s biggest retail banks –
Barclays, Lloyds, HSBC and RBS.
The bank was reacting to a report
published at the weekend by the influ-
ential Treasury Select Committee,
chaired by Tory Andrew Tyrie, which
said that Santander “was already a
leading player” in UK banking and
that the government let its desire for a
good return from the RBS sale trump
its effect on competitiveness.
Santander is keen to stress its “chal-
lenger” status, adding that it is “pro-
viding a competitive alternative to the
UK’s incumbent banks”, rather than
contributing to concentration in the
market.
the committee’s view. HSBC said: “The
UK retail market is very competitive at
the moment – it’s probably the most
competitive in Europe.”
The Treasury Committee report said
that some banks’ “too big to fail” sta-
tus gives them an unfair advantage
that contributes to an “oligopoly”,
with “high barriers to exit”, or bank-
ruptcy. It added that banks are not
clear enough about current account
fees and horde information such as
access to the payments system.
Despite concern about concentra-
tion, however, the committee said the
Lloyds-HBOS merger should not be
reversed for fear of damaging govern-
ment “credibility”.
ANALYSIS l Lloyds Banking
70 p
61.00
66 1 Apr
62
58
10 Jan 28 Jan 17 Feb 9 Mar 29 Mar

Deutsche set Citigroup hit by

to fight HMRC US cyber attack
▲

REMUNERATION
DEUTSCHE Bank has officially con-
firmed its intention to appeal a tribu-
nal decision which ruled against a
scheme it established to avoid taxes
on bonuses.
The January decision against the
bank by Judge David Williams affects
a £92m pay pot Deutsche set up in the
Cayman Islands before rule changes
made the arrangement illegal.
A spokesman for the bank said:
“This was a one-off arrangement from
seven years ago and hasn’t been
repeated. We believe it met all
requirements at the time and are
appealing the decision.”
TECHNOLOGY
THE e-mails and names of customers
of Citigroup, Walgreen and other
large US companies were exposed in a
massive and growing data breach,
after a computer hacker penetrated
online marketer Epsilon.
In what could be one of the biggest
such breaches in US history, diverse
companies that did business with
Epsilon stepped forward over the
weekend to warn customers some of
their electronic information could
have been exposed. Affected firms
included video recorder TiVo, credit
card lender Capital One Financial and
teleshopping company HSN.
 6 News
Glencore gets
a green light
in Hong Kong
MINING
▲
BY JULIET SAMUEL
HONG Kong has given Glencore per-
mission for the Asian leg of its float,
according to sources close to the com-
modities giant.
The commodities and trading
giant, which is valued at $60bn
(£37bn), received a letter on Friday
giving it the go-ahead for its Hong
Kong listing as part of a dual London-
Hong Kong listing plan first disclosed
by City A.M. in December.
The initial public offering (IPO),
which will be London’s biggest ever
float, had originally been considered
a UK-only deal, but sources close to
the deal told City A.M. that its manage-
ment have been persuaded to pursue
a dual listing in Asia to be closer to
the region’s high-growth, commodi-
SUEK set to
join FTSE 100
in June IPO
▲
MINING
RUSSIAN coal giant SUEK is likely to
join the FTSE 100 when it floats in a
London IPO in June. The group’s
intention to tap investors for around
$1bn (£623m) this summer was first
revealed in City A.M. last Thursday.
With a valuation of between $5bn
and $10bn, the group – the Siberian
Coal Energy Company in full – is like-
ly to become a constituent of the
blue-chip FTSE 100 index. It has been
tightening up its corporate gover-
nance procedures to comply with
London’s strict listing rules.
ty-hungry economies.
Glencore is understood to be inter-
ested in raising $10bn through the
deal, which will transform the com-
pany from its traditional partnership
model, allowing many of its senior
staff to cash out.
Analysts have been told that mid-
May is a preliminary deadline, after
which the company will have to redo
its accounts in order to float.
BlackRock fund manager Evy
Hambro, who holds a number of
Glencore’s convertible bonds, con-
firmed last week that he is expecting
the IPO to get off the ground in the
second quarter of this year.
Analysts were also given a deadline
of last Friday to complete their notes
after a series of investor meetings by
Glencore chief executive Ivan
Glasenberg.
Richard Desmond
mulls Mail merger
M&A
▲
BY JENNY FORSYTH
THE owners of the Daily Express and
the Daily Mail are said to have held
informal talks about a potential
merger of the national newspa-
per titles.
According to Sky News,
Richard Desmond (r), the
chairman of the Express
owner, Northern & Shell, and
Lord Rothermere, chairman of
Daily Mail & General Trust,
discussed the idea earlier this
Chief executive Ivan Glasenberg has been meeting potential investors Picture: REUTERS
Ophir Energy plans $2bn
London float or stake sale
▲
GAS & OIL
AFRICA-focused oil company Ophir
year and further talks may Energy, which is backed by Indian
be held within a few weeks. steel magnate Lakshmi Mittal, is
Any deal would mark an preparing for a $2bn (£1bn) float in
end to the hostilities London.
between the proprietors, The company, which has a portfo-
which for several years lio of oil fields across Africa, plans to
were played out raise up to $500m by selling a quarter
through the papers. of its shares before the summer to
Circulation fig- fund the development of recent
ures show a merger finds.
would create a Ophir is understood to have lined
newspaper power- up Credit Suisse and JPMorgan to
house, with week- lead the listing.
day sales of more However, the group is also looking
than 3m copies. at selling a stake in one of its projects
CITYA.M. 4 APRIL 2011
Financial firms
say business is
back on track
▲
ENERGY
FINANCIAL services firms have report-
ed business that is only slightly below
normal levels for the first time since
the financial crisis, a survey reveals
today.
However, this partly reflects lower
expectations of what constitutes “nor-
mal trading”, according to
PricewaterhouseCoopers (PwC), which
conducted the survey alongside the
Confederation of British Industry
(CBI).
New regulation threatens to burden
the industry over the coming months,
the survey revealed.
The proportion of firms reporting
that statutory legislation and regula-
tion could stunt growth over the next
12 months reached a record high for
the survey.
Nonetheless, a net 22 per cent of
firms reported growing volumes of
business in the past quarter, while a
net 30 per cent expected to see growth
accelerate in the next three months.
Fees and revenues at banks, build-
ing societies, fund managers, traders
and insurers rose at the fastest rate
since March 2007.
or attracting further private invest-
ment as an alternative to a listing.
The company, which was set up in
2004, is 70 per cent owned by four
investors.
Mittal, the wealthiest man in
Britain, owns 21 per cent after invest-
ing three years ago.
Ophir is the latest firm keen to
cash in on soaring commodities
prices. The price of oil hit $118 a bar-
rel last week as political unrest con-
tinued in Libya and protests spread
to other Middle Eastern oil produc-
ers.
Ophir was not available for com-
ment.
 How did oil prices
get so pumped up?
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UK UK drivers at
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inflation the petrol
value?
rises. pump.
Take a position at
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MPC considers
Political unrest Libyan oil raising
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streets of Cairo Suez trade route
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Spike in
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ingredients
causes commodity
Demand for
bubbles.
Speculative alternative fuels
interest in increases.
smaller Oil price
Are shares a
oil exploration rapidly hits
good prospect?
companies $100
Take a position at
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igindex.co.uk increases.
car sales feel
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BP’s 2010
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Spread betting can result in losses that exceed your initial deposit.
 8 News CITYA.M. 4 APRIL 2011

Japan nuclear
Stalemate in leaks could take
Libya as Gulf months to halt

markets rally
JAPAN

▲
JAPAN’S government yesterday
warned that it could take months to
stem radiation leaks from the dam-
aged Fukushima Daiichi nuclear
plant, as the plant’s operator said
attempts to seal the latest reactor leak
▲

MIDDLE EAST tion forces, the UK said it had sent had so far failed.
BY ELIZABETH FOURNIER diplomats on a fact-finding trip to A crack in the concrete pit at
meet rebel leaders in Benghazi – the Fukushima’s number 2 reactor was
KEY oil town Brega was at the centre of insurgents’ stronghold in the east. confirmed at the weekend, and radia-
clashes in Libya yesterday, as rebels Meanwhile, thousands of Syrians tion readings remained high last night
fought Gaddafi’s troops for control of called for freedom at the funeral of despite efforts to repair the fracture.
the eastern settlement and coalition eight protesters yesterday after Meanwhile two nuclear plant work-
warplanes launched targeted attacks. President Bashar al-Assad named a for- ers were named as the first official
Fighting in Brega has been at a stale- mer agriculture minister to form a deaths at Fukushima.
mate for several days, with Western air new government. Speaking on national television,
power failing to give insurgents the Unrest also continued in Yemen yes- prime ministerial aid Goshi Hosono
upper hand in clashes. terday, where two protesters were admitted that overheated nuclear rods
A Western coalition air strike killed reported to have died when police at the plant still presented a crisis situ-
13 rebels late on Friday near the settle- used live ammunition and tear gas to ation. “How long will it take to achieve
ment’s eastern gate. The rebel leader- disperse anti-government protests in (the goal of stopping the radiation
ship said that the bombing was an Taiz, south of the capital Sana’a. leakage)? I think several months would
unfortunate mistake, and that air Despite ongoing turmoil across the be one target,” he said.
strikes were still needed against Middle East, Gulf markets have made Plant operator Tokyo Electric Power
Gaddafi’s better-armed units. positive gains in the past week, as their Company (Tepco) yesterday said that
Meanwhile, reports yesterday sug- political risk premium appeared to General Electric had promised to help
gested Libya’s deputy foreign minister decline. with supply generation in the coming
Abdelati Obeidi had flown to Athens Both the Egyptian and Omani months.
with a message for the Greek Prime bourses made small gains yesterday, A Tepco spokesman said that GE,
Minister George Papandreou. with Egypt up 1.7 per cent – the fifth which helped build three of six reac-
A meeting was expected to take time in seven sessions that it has risen. tors at the Fukushima plant, “would
place late last night, raising hopes of a Crude oil was at a 30-month high in cooperate with Tepco on restarting
diplomatic solution to the war. New York on Friday, with May deliver- and strengthening its thermal power
As Nato assumed control of coali- ies hitting $107.94 a barrel. Political unrest in Syria is part of widespread turmoil in the Middle East Picture: GETTY generation”.

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 The Capitalist
CITYA.M. 4 APRIL 2011 9
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

HARLAN’S When clients

meet Craig
LICENCE TO Coben they
THRILL HIS are more
interested in
CITY FANS talking about
his brother’s
NEVER mind capital markets – when
clients meet Craig Coben, head of equity next book
capital markets at Bank of America
Merrill Lynch, they are far more interest- Bishop of London Richard Chartres
ed in talking about when his famous
brother, the US author Harlan Coben, is
publishing his next novel.
“A lot of the bank’s corporate and pri-
vate equity clients – ranging from chief
BILL OF THE WEEK
executives to chief financial officers – are
fans of Harlan’s,” Craig Coben told The A step back in time for this week’s bill from 11 November 1918, which
Capitalist. “They know his books so well Author Harlan Coben has a wide fan club among Bank of America Merrill Lynch’s corporate clients can be seen as part of an exhibition at Dr Johnson’s House on Gough
they quote details of the plots to me that Square from tomorrow until 30 July. When the gathering of 31 distin-
even I can’t remember.” chief executive Mick Davies and Anthony guished diners – including the first Viscount Northcliffe Alfred
So the senior US private equity figure Alt, deputy chairman of NM Rothschild & Harmsworth, founder of the Daily Mail, the Lord Mayor of London and
who emailed Craig Coben excitedly when Sons, and Sassoon agreed with Alt that the detective author GK Chesterton – sat down at a banquet at Dr
he noticed a full-colour ad in the New City should invest in SMEs such as the tech Johnson’s house near Fleet Street, they put away 36 cocktails, six bot-
York Times for Harlan’s new book Live firms at Silicon Roundabout to offset the tles of Corton Burgundy, seven bottles of Pontet-Canet claret and six
Wire will be pleased to hear the “electric, loss of public sector jobs. “It’s deeply bottles of Cockburn’s 1896 port, while their food included turtle soup
stay-up-all-night thriller” has shot to the shocking there is such a close conjunction and “the famous rumpsteak, kidney, lark and oyster pudding”. Converted
top of that newspaper’s bestseller lists between some of the wealthiest and the into today’s money, the bill works out at about £6,750.
after its first week on sale in America, poorest parts of the UK,” he said.
ahead of its UK publication in May.
Craig, 44, is the youngest of the three
Coben brothers after Harlan, 49, and
Larry, 52, who runs a charity for preserv-
RINGING THE CHANGES
BUSINESSMAN and philanthropist Dill
ing archaeological sites. Although Craig’s Faulkes, who made his money in software,
15 years as a London banker at Merrill is best known for his work to help young
Lynch and Deutsche Bank must have people through his educational trust.
given him plenty of material, he has no But yesterday he stepped in as the
plans to collaborate with Harlan on an principal benefactor for a new set of
intricate plot set in the financial world. bells for the City’s parish church on
“Historically, Harlan has focused on the Bennett and Pereya-Achata Cornhill, the Christopher Wren-
people and places he knows best, such as designed St Michael’s.
New Jersey, to give his novels an authentic fundraiser at law firm Mayer The 12 bells, which range in size
feel and tone,” said Coben, who plans to Brown – including Jerrold from one to five feet, were laid out
read Live Wire when he is in the States on Bennett from the Financial yesterday morning and consecrated
business later this month. Services Authority and in an opening ceremony by the
“I have no input into his books, just as Alexandra Pereyra-Achata from Bishop of London Richard
he has no input into what I do. We leave Execuzen (pictured above) – Chartres (pictured
each of our métiers to the professionals.” where drinks were followed above striking one of
by a panel debate the bells), inscribed
chaired by the BBC’s with the benefac-
MIND THE GAP economics editor tors’ names.
KAREN Gerrard from Citigroup walked Stephanie Flanders. That’s £195,000
away from a party last Thursday better- Lord Sassoon, com- well spent – listen
dressed than when she arrived, after win- mercial secretary to out for the tune-
ning a £1,000 Savile Row suit voucher by the Treasury (right), ful three-hour
predicting the closing level of the Nasdaq- discussed how the City peals on
100 index with deadly accuracy. can contribute to Sundays, Saints
Gerrard was joined by 150 young City Britain’s economic Days and
professionals at the Young Norwood recovery with Xstrata memorial days.
 10 News
ECB should hike rates – but don’t forget Spain
CNBC COMMENT
GUY JOHNSON
I
T is all but certain that the ECB will
raise rates this week. It has been
itching to do so for some time. Now
that the moment has arrived what
will the move actually mean for the
Eurozone and the global economy?
The simple answer is probably not
very much. The move has been well
telegraphed and priced in to financial
assets. The key policy rate will also
remain well below an inflation read-
ing that in February hit a 29-month
high of 2.6 per cent.
Some degree of normalisation is
desirable. The current ultra-easy
money environment is not sustainable
without creating huge distortions fur-
ther down the road. Drilling down fur-
ther, rates are not in any way
appropriate for the big economies of
France and Germany, which are well
on their way to recovery.
The real issue though is not what
happens on 7 April but after it.
Pragmatically, the ECB should tighten
slowly and carefully. The economic
environment remains unclear with
the situations in Japan, North Africa
and the Middle East still unresolved.
However, the biggest uncertainty poli-
cy makers face is how the periphery of
the region will respond to a higher
cost of borrowing.
The central bank says it can do no
better than set policy for the whole of
the area. True, but is the ECB really
prepared to feed the weakest members
of its flock to the wolves? Despite ongo-
ing liquidity support, an abrupt
change in the cost of money will kill
off any hope of recovery for many.
The critical country to watch now is
Spain. While Greece, Ireland and
Portugal matter, they are still minor
players within the euro area. Spain is
its fourth largest economy. It matters
not only to the ECB but also to the
markets.
Judging by yields in the secondary
market, investors have become more
relaxed about prospects for Spain over
recent weeks. This may change. The
cost of recapitalising the country’s sav-
ings banks is still unknown, as is the
impact of tighter money on the broad-
er economy. Spain has large numbers
M&S to add to
retail gloom
▲
RETAIL
BY DAVID CROW
MARKS and Spencer, the retail bell-
wether, is likely to add to the sense of
impending doom on the High Street
when it reports a sharp drop in sales
later this week.
Analysts expect like-for-like sales of
general merchandise – which exclude
food – to have fallen by a “grisly” six
per cent in the fourth quarter. Food
sales are likely to have held up, how-
ever, growing by around 1 per cent at
stores open for a year or more.
The drop in sales will be exacerbat-
ed by an unusually good performance
in the same quarter a year ago, when
M&S grew non-food sales by 9 per
cent.
The late timing of Easter and
Mother’s Day is also likely to be cited
as a factor by management.
But bears are sure to seize on the
figures, which follow a slew of bad
news from retailers, as proof of an
impending “Nightmare on the High
Street”.
“M&S should have suffered from a
mix of tougher comparatives and a
more cautious consumer at the start
of 2011,” analysts at Société Générale
said in a note.
M&S is seen as a bellwether for the
rest of the retail sector, due to its
Forget the Champs-Élysées: British
consumers have lost their joie de vivre
THERE was much fanfare last week
when Marks and Spencer returned
to the Champs-Élysées in Paris. But
even if the French flock to the
British retailer in droves, which
seems somewhat improbable to us,
their joie de vivre isn’t being shared
by domestic customers. Like-for-like
sales in the fourth quarter are
expected to be off by six per cent.
Bulls are sure to point out that
M&S is fighting against incredibly
tough comparatives, after sales in
the same period last year jumped by
9 per cent. And they will also point
out that Mother’s Day, Easter and
the Royal Wedding, which all fall in
M&S’s next quarter, will provide a
boost next time round.
CITYA.M. 4 APRIL 2011
of variable mortgages which means
that any move from the ECB will be
quickly transferred to the already
stretched consumer.
If Spain shows signs of faltering
then the Eurozone has a massive
problem. At that point rate rises may
need to stop or even be reversed.
This, though, is for the future.
Tightening is the right thing to do
right now. Pricing in an aggressive
tightening cycle is not. There
are still too many unknowns: both
the ECB and investors should tread
very carefully.
Guy Johnson co-anchors European Closing
Bell weekdays on CNBC.
heavy footfall of 21m customers a
week and the wide range of merchan-
dise it sells.
The slide in sales at M&S comes hot
on the heels of a raft of gloomy news
from some of the best-known High
Street names.
Last week, Dixons Retail, the owner
of Currys and PC World, warned on
its profits for the second time in as
many months, after like-for-like sales
fell by seven per cent in the 11 weeks
to the end of March.
Justin King, the chief executive of J
Sainsbury, also recently said sales at
the supermarket had fallen signifi-
cantly since Christmas.
Even Domino’s Pizza, which has
been seen as one of the biggest benefi-
ciaries of the recession, last week said
first quarter sales had dropped by
over 10 per cent.
ANALYSIS l Marks & Spencer
390 p
338.90
370 1 Apr
350
330
10 Jan 28 Jan 17 Feb 9 Mar 29 Mar
That might be so, but the medi-
um to long-term outlook is uncer-
tain for M&S, as it is for most
retailers. Spiralling inflation stoked
by higher commodity prices, higher
taxes, constrained consumer credit
and fear over public sector cuts are
about to combine to create a lethal
brew.
Most retailers, with the exception
of those who have fallen by the way-
side, have had a remarkably good
recession. Sadly for the likes of
M&S, that can’t last.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
CITYA.M. 4 APRIL 2011
Business says
paternity law
will hit hard
EMPLOYMENT
▲
BY JULIAN HARRIS
BUSINESS groups and trade unions
clashed yesterday over the introduc-
tion of new employment laws.
Over half (52 per cent) of companies
say the new regulations, granting
extra paternity leave and scrapping
the default retirement age, will harm
their business, according to a survey.
And over a third (34 per cent) said the
changes would be “extremely detri-
mental”.
“In the face of promises by the gov-
ernment to listen to the needs of busi-
ness and cut red tape, these two new
pieces of employment regulation will
hit businesses hard,” said David Frost
of the British Chambers of Commerce
(BCC), which conducted the survey.
However, TUC general secretary
Brendan Barber said businesses
should be grateful for the regulations
on paternity leave.
“The extension of family-friendly
working over the last decade has
helped to drive record employment
rates for working families, which busi-
nesses have hugely benefited from,”
Barber said.
Four in 10 employers are still unpre-
pared for the changes to paternity
leave regulations, according to recent
research from the charity Working
Families.
We need to shout about
the best things in London
VIEW FROM CITY HALL
ANTHONY BROWNE
W
HAT is London? A city, yes,
but so much more. It is a
global centre of finance,
sure. It is by some meas-
ures the world’s creative capital,
from media to theatre to film; home
to the world’s most popular music
venue and its most popular modern
art gallery. The university capital of
the world, with more top universi-
ties and international students than
any other city. A global leader in
medical research, and the European
leader in digital technology. We
might not be the fashion capital
quite yet, but we did give the world
the business suit. The best restau-
rants, even the French are starting
to say. More museums than Paris,
less rain than Rome, a quarter the
murder rate of New York. Next year,
we’ll become the first city in history
The new Additional Paternity Leave
regulations allow fathers of children
born from yesterday onwards to take a
share of the mother’s maternity leave
if she returns to work. Fathers can
take a maximum of six months pater-
nity leave.
In a further blow for employers, the
default retirement age of 65 will be
gradually phased out from
Wednesday.
In last month’s Budget, chancellor
George Osborne unveiled a policy to
except some small firms from new
government regulations.
“There is some confusion about
this,” a Federation of Small Businesses
spokesperson told City A.M. yesterday.
“We’re still not sure what regulations
the proposed three year moratorium
refers to.”
“The Budget revealed a policy to
exempt start-ups and existing firms
with fewer than ten employees from
new domestic regulation,” added
Frost. “But arguably, any exemptions
should include a wider scope of firms,
not just micros,” Frost said.
Government must cut
red tape to allow British
businesses to grow, said
David Frost of the British
Chambers of Commerce.
to host the Olympics three times.
I say all this because when we
asked business what the top thing is
that the Mayor can do to boost the
London economy, the answer came:
promote it. He is in a unique posi-
tion to champion London around
the world, in a way that no individ-
ual company can.
The Mayor inherited various agen-
cies – Think London, to promote
inward investment, Study London,
to encourage international stu-
dents, and Visit London, to encour-
age tourists. They all did a good job
within their sector, but businesses
urged the Mayor to merge them so
we can take a more strategic and
flexible approach, and get more pro-
motional bang for our buck. Uniting
them, we can promote a coherent
message about London with a single
brand, and promote whichever sec-
tors give the greatest economic
returns. By combining forces, we
can reduce duplication and increase
the firepower.
After two years of preparations,
we last week launched the capital’s
new promotional agency – London
and Partners. Despite cuts from cen-
tral government, we managed to
fund it from our own resources.
And although mainly publicly fund-
Robin Osmond has resigned to pursue other opportunities Pic: Micha Theiner/City A.M.
Chief quits Betfair’s LMAX
months after retail launch
FINANCIAL SERVICES
▲
BY DAVID CROW
THE chief executive of Betfair’s finan-
cial betting exchange LMAX has quit
just three months after the platform
was launched for retail investors.
Robin Osmond, a former head of
global investment banking at Morgan
Stanley, is leaving to “pursue other
opportunities in the City”, LMAX said
in a statement.
Betfair, which owns a majority 75
per cent stake after investing £25m in
the start-up, said it remained “fully
committed to LMAX”.
But the departure of Osmond so
soon after the platform was launched
for retail investors is sure to raise
questions among some in the City,
especially after Betfair declined to
ed, we set it up to be ruthlessly com-
mercially-led, with a private sector
board, and working in close part-
nership with companies as well as
public agencies. From early days,
Dame Judith Mayhew Jonas, chair-
man of the New West End
Company, was very generous with
her time, and we were delighted
when she agreed to be the founding
chairman.
All we need do now is actually
promote London. And what a time
to do it! This month we have the
Royal wedding, next year the
Queen’s diamond Jubilee closely fol-
lowed by the Olympics and
Paralympics, with the world’s eyes
upon us. London and Partners will
be leading the charge in using the
2012 games to promote all that our
great city has to offer the world.
London might be glowing, but it is
set to shine even brighter.
Planning an event for 2012? Share
details by 31 March 2011 and be part
of a unique and exciting year.
Cultural events: http://www.thecul-
turediary.com
Other events:
http://www.london.gov.uk/eventsin
2012
Anthony Brown is an adviser to the
Mayor of London
give details of LMAX’s progress when
it unveiled its maiden results as a
public company early last month.
Yesterday, sources close to the firm
were playing down expectations for
LMAX’s trading so far, insisting it was
“still very early days”.
Osmond will be replaced by David
Mercer, who will become interim
chief executive with immediate
effect. Most recently, Mercer worked
at specialist forex and derivatives
provider Velocity Trade.
City A.M. understands that while
Betfair was happy with the technical
performance of LMAX under
Osmond, it felt Mercer had more
appropriate commercial experience.
Prior to Velocity Trade, Mercer had
spells at IFX Markets, City Index and
Saxo Bank.
Final Reductions
including
5 shirts for £100
Finishes Tuesday 5th April 2011
Shop 14, The Old Truman Brewery
91 Brick Lane, London E1 6QL
Tel: 020 7434 2001
All major credit cards accepted
Terms & Conditions apply
News 11
NEWS | IN BRIEF
SABMiller eyes Brazil brewery
SABMiller is said to be considering a
bid for Schincariol, Brazil's second-
largest brewer, which has been put up
for sale for about $2bn (£1bn). Dutch
brewer Heineken could also be interest-
ed in the privately owned company it is
understood. SABMiller, the world's
number two brewer, declined to com-
ment.
New EasyGym brand to launch
EasyJet founder Sir Stelios Haji-Ioannou
is set to launch a chain of easyGyms
across the UK. He plans to open the first
two gyms in summer, with the aim of
rolling out 10 sites a year from next
year. He will be working on the project
with private equity firm Fore Fitness.
Like other “easy” brands, the gyms will
focus on value for money, with no con-
tracts and prices starting at £15 a
month.
Hop film bounces into box office
Animated movie Hop, about a music-
loving teenage rabbit, jumped to the top
of box office charts with $38m
(£23.6m) in North American ticket
sales, according to studio estimates yes-
terday. The movie, in which comedian
Russell Brand voices a young rabbit
who will one day become the Easter
Bunny, easily outdistanced thriller
Source Code, which collected $15m.
Rounding out the top three was
Insidious with $13.5m. All three movies
were in their first weekends in theatres.
"Hop" was released by Universal
Pictures, part of the NBC Universal
media company run by Comcast Corp.
It was released in the UK on Friday.
Correction
In our edition dated Friday 1 April, an
article on the potential sale of Odeon
and UCI cinemas by Terra Firma said
the private equity house was also
mulling a sale of Cineworld. It does not
own the Cineworld chain, which is
owned by public company Cineworld
Group.
 Copyright © 2011 United Parcel Service of America, Inc.
The new logistics is global. A manufacturer in China can supply a finished product days after receiving your
prototype design. As the world’s largest customs broker and with one of the world’s largest air fleets, UPS can
shrink the world for you. In fact, UPS clears more shipments through customs than any company on earth.
That’s a new kind of speed-to-market. That’s a new kind of logistics. thenewlogistics.co.uk
CITYA.M. 4 APRIL 2011 News 13

Chinese growth will benefit City of London too

ships through commercial diplomacy.
Emerging economies are expected
to account for over 50 per cent of
global growth over the next five years.
Some people view this change in the
economic landscape as a threat to our
future prosperity but I see it as an
opportunity for closer partnership.
LORD MAYOR’S COMMENT The City has always thrived in the
face of intense competition for busi-
MICHAEL BEAR ness. London is a natural location for
trade and investment with rapidly
largest economy, China is already a
key player on the international stage.
But by sharing our experience and
expertise we can help China over-
come bottlenecks and help it develop
a thriving financial industry to serve
Chinese companies’ domestic needs
and support international expan-
sion.
Just as London is the natural
point of entry for international firms
looking to access European markets,
centres, alongside London and New
York, while the State Council and the
Shanghai municipal government are
taking steps towards realising the
vision of Shanghai becoming
China’s international financial cen-
tre and shipping hub by 2020.
The growth of new financial cen-
tres will ultimately benefit
established centres such as London:
as the size of the global industry
expands, we will see new business
Understanding with the Shanghai
Municipal Government, to strength-
en our longstanding relationship.
The Prime Minister and Chinese
Premier Wen agreed last November
to work towards doubling bilateral
trade to $100bn (£50bn) a year by
2015.
China’s dramatic development
presents considerable opportunities
for UK firms, especially in high-value
projects. Huge sums will need to be

W
ITH the debate over how to
stimulate UK economic
growth still raging, one area
we can ill afford to neglect is
strengthening our trading relation-
developing countries but we must
continue to make the case.
That is why I will be leading a sen-
ior City business delegation to China
later this week. As the world’s second
Chinese centres want to become
financial gateways to Asia and
beyond.
Hong Kong is already established
among the top three world financial
opportunities forged on the
basis of strong links between finan-
cial centres.
To this end, I look forward to sign-
ing a renewal of a Memorandum of
invested into infrastructure schemes
to keep pace with domestic consump-
tion.
Michael Bear is Lord Mayor of the City of
London

Candy bros
see £4m loss Gain an edge in a
PROPERTY of new business opportunities, which
competitive market
▲

BY ALISON LOCK will in turn affect the division

prospects,” its statement said.
CANDY & Candy, the interior design The Candy brothers lost contracts
and property development firm to develop expensive projects such as
owned by Nick and Christian Candy, Chelsea Barracks and NoHo square
slipped to a £4.4m loss in 2010, its
accounts showed yesterday.
The firm fell to a £4.4m pre-tax loss
north of Oxford Street that had boost-
ed revenues in 2009. The plans for
Chelsea Barracks were abandoned by
Study part-time for a successful
in the year to the end of
June last year from a
£2.2m profit in 2009
its Qatari developer after
opposition from Prince
Charles among others.
career within the financial
after sales plummeted
to £8.3m from £18.2m a
year earlier, according to
High costs and
administrative expenses
were also a factor, as the
services industry
accounts filed at firm paid out a com-
Companies bined £12.3m last
House. year compared
The firm with £16.6m in
blamed a lack of 2009. Candy &
new business Candy said it
for the decline. took steps to
“The lack of cut costs by
liquidity in the reducing head-
construction count. The
finance market brothers also
has affected sold their large
the division’s London head-
clients and lim- quarters in
ited the number February.

@
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Foundation Degree in Banking Practice and Management
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BSc (Hons) in Banking Practice and Management

Join us to find out more

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CITYA.M. 4 APRIL 2011
Business polls
still point to
UK recovery
UK ECONOMY
▲
BY JULIAN HARRIS
BUSINESS surveys continue to point
to a rebound in growth for the first
three months of this year, but econo-
mists are divided on the extent to
which the UK economy will recover.
Business surveys due out today and
tomorrow, which cover March, will
reveal the level of progress in the con-
struction and services sectors, which
together account for around 85 per
cent of the UK economy.
“Last month’s services purchasing
managers’ index fell back to 52.6
from January’s 54.5, consistent with
lacklustre growth,” said Investec’s
Philip Shaw.
Figures over 50 in PMI surveys
reflect expansion in a sector.
“Given gloomy evidence from
retailers over recent weeks, we sus-
pect that the level of the services PMI
will remain in the doldrums tomor-
row, and accordingly we are forecast-
ing it to remain at 52.6,” Shaw added.
The services sector alone makes up
around three quarters of the British
economy.
Other business surveys, conducted
for the European Commission, point
to a positive outlook for the first
quarter of 2011, according to Simon
Ward, chief economist at Henderson.
“Services and industrial output --
Fund managers expect economy to
grow but warn of sluggish progress
WORLD ECONOMY
▲
BY JULIAN HARRIS
ALMOST two thirds (63 per cent) of
fund managers believe the UK econo-
my will grow over the next 12 months,
a survey revealed today.
However, a majority of fund man-
agers (54 per cent) expect the economy
to only “marginally” improve, as slug-
gish growth looks likely to stall the
recovery.
Faith in sterling nonetheless
remains strong, with almost half (44
per cent) expecting the currency to
appreciate over the coming 12
months. Only 28 per cent anticipate
further depreciation of the currency.
NEWS | IN BRIEF
Weak recovery in the Eurozone
Growth in the Eurozone will be slug-
gish in 2012, while the single currency


area faces strong downside risks,
Ernst and Young’s spring economic
forecast will state today. The euro
area economy is recovering “at a
much slower pace than expected,”
with forecast GDP growth of just 1.5
per cent this year and 1.7 per cent in
2012, Ernst and Young will announce.
$XWKRULVHG)HGH[6KLS&HQWUHSURYLGHGLV
“And although we still expect a muted
recovery for the Eurozone over the
next 12 months that could easily be
which makes up 93 per cent of GDP --
was 0.7 per cent above its quarter
four average,” Ward said.
“And the economy is already rebal-
ancing, with a 12 per cent rise in
business investment in the year to
quarter four. This contributed one
percentage point to GDP growth,
which is the equivalent of a 1.6 per
cent increase in consumer spending,”
Ward added.
On Wednesday, official data will
report on industrial output in
February, providing more evidence
for the likely expansion of GDP in the
first three months of the year.
“Overall industrial production is
expected to have expanded by 0.3 per
cent month-on-month,” said Howard
Archer of IHS Global Insight, “with
the manufacturing part up by 0.5 per
cent.”
The UK’s factory industry has been
the good news story of the recovery,
yet the sector’s PMI score dropped to
57.1 in March – down from 60.9 in
February, and a record high of 61.2 in
January.
“Manufacturers reported an
unwelcome combination of slower
growth and rising price pressures in
March,” said Rob Dobson of Markit,
which conducts the surveys.
The sector’s growth still remains
significantly above the long run aver-
age of 51.3.
The euro, however, is set to depreci-
ate, according to 63 per cent of respon-
dents. The 17 country single currency
has recently strengthened, with the
European Central Bank expected to
hike interest rates on Thursday.
But the expectation of depreciation
to come “highlights further uncertain-
ty about Europe’s economic security,”
according to the report by Capital
Spreads.
“Although sterling is currently trad-
ing at roughly a four month low
against the euro, fund managers
appear to be of the opinion that it is
only a matter of time before it
strengthens,” said Capital Spreads
chief Simon Denham.
blown off course by global economic
events or an escalation of the
Eurozone debt crisis,” said Ernst and
Young economist Marie Diron.
Unemployment across the Eurozone
could still be around 14m in 2015,
according to the forecast – consider-
ably above 2007 levels. Given the
frailty of the economy, the European
Central Bank could be making a mis-
take by raising interest rates, Diron
feels. The ECB is widely expected to
hike interest rates when it meets on
Thursday of this week.
News 15
PwC: Budget
was good for
businesses
▲
UK ECONOMY
BY JULIAN HARRIS
CHANCELLOR George Osborne
received a boost today, when a poll
revealed that three quarters (74 per
cent) of businesses believe that the
Budget made the UK a more attrac-
tive place to do business.
Construction data for March is released today Picture: Micha Theiner/City A.M. Osborne pledged several incre-
ments of cuts in corporation tax as
ECONOMISTS’ VIEWS: IS THE UK ON COURSE TO well as reforms to Controlled Foreign
Company rules, in last month’s
BOUNCE BACK IN QUARTER ONE? Interviews by Julian Harris Budget.
Among multinational companies,
83 per cent believe last month’s
Budget was “good for business,”
SIMON WARD | HENDERSON PricewaterhouseCoopers (PwC)
“
revealed today.
Last year, just over half (56 per
I am encouraged by the strength of employment expec- cent) thought the previous Budget
”
tations in EU surveys for March, suggesting that firms have has been good for business.
“The 2011 Budget contained a wide
weathered recent events with their optimism intact. range of measures aimed at making
the UK tax system more competitive
globally,” said PwC’s Justin O’Hagan.
PHILIP SHAW | INVESTEC “Businesses will welcome these
“
measures,” O’Hagan said, citing tax
simplification measures and the new
We expect to see GDP rebounding by 0.8 per cent in the patent box tax relief.
”
first quarter of the year. That would reflect around 0.5 per cent However, over half (56 per cent)
'lost' last year as well as 0.3 per cent ‘genuine’ growth. doubt whether the full corporation
tax reform will be in place by the
summer of 2012.
And there remains widespread
HOWARD ARCHER | IHS GLOBAL INSIGHT scepticism over whether the chancel-
“
lor can successfully reduce the UK’s
annual government deficit.
Signs that consumers are reining in their spending is a Only 28 per cent of respondents
”
particular concern. As consumer spending accounts for 65 per think the austerity plans are realistic
cent of GDP this is very worrying for growth prospects. and achievable, compared with 60
per cent in the last year’s poll.
HOW WILL MAJOR CURRENCIES
PERFORM OVER THE NEXT
12 MONTHS?
Depreciate Appreciate
Euro 63% 15%
THE PRINT COMPANY
Dollar
Sterling
31%
28%
41%
44%
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SULQWHGDQGGLVSDWFKHGWR1HZ<RUNIRUQH[WGD\
manufacturers’ group EEF said today.
“Interest rates must remain on hold
until much stronger evidence emerges CALL US TO DISCUSS 


of a healthier economy,” said EEF RUFIND
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STORERQZZZFRORUFRXN
economist Lee Hopley. “Any bounce
back in the first quarter will not neces-
sarily signal a rebound in economic for-
tunes,” she added. “Growth is
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tor contributions from trade and
investment.”
 16 News
Travelex eyes
another sale
FINANCIAL SERVICES
▲
BY ELIZABETH FOURNIER
FOREIGN exchange company
Travelex is poised to appoint bankers
to advise on the sale of its global
business services, as it builds up cash
reserves to expand its currency serv-
ices in global markets.
Travelex’s global business services
operation is currently the largest
non-bank provider of foreign
exchange services to businesses and
financial institutions.
A source close to the company said
that talks with banks and advisers
were ongoing following strong
financial results last month, and
that although no banks had been
officially hired yet an appointment
is likely to be made “very shortly”.
Chief executive Peter Jackson said
in late March that the company was
FTSE expected to dip as traders take some profits
MARTIN ON
THEMARKETS
MARTIN SLANEY
T
HE first 100-point gain for the
FTSE 100 index on Friday since
the start of the year is likely to
prove too much of a temptation
for those looking to bag some profits
this morning, with the usual
headaches still tormenting the mar-
%$
#3*5"*/
(0&4
065
%$
Investec Derby Festival – 3rd & 4th June 2011
Featuring the world’s greatest flat race
looking to use cash reserves from dis-
posals – including the $459m
(£285m) sale of its prepaid currency
card unit to MasterCard last year – to
fund expansion of its currency serv-
ices in markets across Asia and
South America.
The company added 139 new
stores in 2010, expanding the brand
to 950 stores across 24 countries. It
also acquired a minority stake in
South African peer FX Africa last
year,
Travelex has been the subject of
listing rumours since the middle of
last year, after chairman Lloyd
Dorfman admitted that its private
equity majority owner Apax Group
was looking at exit strategies.
The company released its second
best-ever set of profits on 21 March,
despite being hit by the Icelandic vol-
cano and travel strikes last year.
kets: oil and the European debt crisis.
In out-of-hours trading, GFT is fore-
casting the UK blue-chip index to open
down 22 points from last week’s close,
at around 5,988. The German DAX is
quoted to open down 27 points at
7,152 and the French CAC down 15
points at 4,039.
The surge made by equities at the
end of the week came on the back of
more positive economic data from the
US, this time from the non-farm pay-
rolls. The boost from the heavyweight
US jobs number was a major boost to
European stock markets, signalling to
many we are witnessing a genuine
recovery in the jobs market there.
Nevertheless, the contrary side to the
good news is that it may in fact be too
good; enough perhaps even to bring
about a premature ending by the
Federal Reserve of its quantitative eas-
ing programme – currently scheduled
to end in June – and maybe even flag-
ging a potential rise in US interest
rates later in the year.
With it seemingly only a matter of
Goldsmiths owner on the
block for up to £200m
RETAIL
▲
BY HARRY BANKS
JEWELLER Aurum Holdings, owned
by failed Icelandic bank Landsbanki,
has been put on the block for as
much as £200m.
Aurum, which owns 165 Mappin &
Webb, Watches of Switzerland and
Goldsmiths stores, posted core earn-
MEET THE ADVISERS
PAUL HERMAN
CAVENDISH
CORPORATE
FINANCE
PAUL Herman is advising Aurum on the
sale of the jewellers. Yesterday, he said
the business had received interest from
time before Portugal needs a bail-out,
and Ireland revealing that it needs
another €24bn (£21.2bn) for its bank-
ing system, Europe’s whole financial
system is still perilously poised, yet
the ECB is expected to raise interest
rates for the first time in two years on
Thursday, as inflationary pressures
have continued to mount.
Crude oil is also set for another
volatile week, starting near two year
highs, with the conflict in Libya now
looking increasingly likely to drag on
longer than was originally expected,
making it difficult to predict when oil
exports can resume.
Martin Slaney is director of global deal-
ing operations for GFT.
The Investec Derby Festival is one of the most iconic events of the sporting
and social calendars. With an anticipated 125,000 on Investec Derby Day
alone, the Festival is one of the most popular sporting events in Britain. And
for good reason. The Festival attracts a diverse range of people, creating
ings of £16.1m, up 53 per cent, on
like-for-like sales of £326m in the year
to 30 January 2011.
Aurum is controlled by the resolu-
tion committee of failed Icelandic
bank Landsbanki, which acquired its
stake when Iceland’s Baugur Group
placed its UK arm into administra-
tion in 2009. Aurum’s chairman and
management team also own stakes.
UK mid-market jewellers and a number
of firms based in the Middle East. He
predicted the sale process would cul-
minate in a two-way run between a UK
player and a Middle East buyer.
Herman, a chartered accountant who
is fluent in French, joined Cavendish in
2000 and heads the retail team at the
advisory firm. He has led transactions
for top clients such as stationers
Smythson, womenswear retailer Etam
and portrait photographer Olan Mills.
ANALYSIS l FTSE
6,100
6,000
5,900
5,800
5,700
5,600
5,500
10 Jan 28 Jan
ANALYSIS l Dax Index
7,600
7,400
7,200
7,000
6,800
6,600
6,400
12 Jan 1 Feb
CITYA.M. 4 APRIL 2011
Tesco launches
website for
used-car sales
▲
AUTOMOTIVE
SUPERMARKET chain Tesco yesterday
launched an online used-car sales serv-
ice, giving customers access to thou-
sands of pre-checked vehicles at set
prices.
To avoid the pitfalls usually associat-
ed with buying a second-hand vehicle,
all cars will undergo an RAC inspec-
tion and be provided with full service
history and details of any damage.
Tesco claims the service will offer
cheaper prices than the traditional
forecourt model by supplying the cars
direct to customers, sourced from a
variety of business and retail stock.
Though customers won’t be able to
test drive the car before purchase, the
website includes videos of the vehicles
being tested for performance and safe-
ty.
The new service is chaired by Sir
Trevor Chinn, former chair of both
Kwik-Fit and the RAC.
6,009.92
1 Apr
17 Feb 9 Mar 29 Mar
7,179.81
1 Apr
21 Feb 11 Mar 31 Mar
CITYA.M. 4 APRIL 2011 News 17

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Bibby Financial Services
The invoice finance specialist has appointed
Andy Leopold as sales director for the south,
based in London. Leopold, who has been pro-
moted from the role of sales director for
London and Hastings, brings more than 19
years’ experience working in the financial
services sector. He will be responsible for
securing new business and supporting the
company’s expanding network in the
Midlands, London and the south of England.
Ascot Mining strengthened its board of directors
The Costa Rican gold miner has by appointing Alex Panko as non-
executive director. Panko has more
than 25 years’ experience in financ-
ing and was previously a director of
Coral Resources, Renaissance
Structures and Eagle Gold Mines.
Eversheds
The international law firm has
appointed Howard Barrie as a part-
ner in its project and infrastructure
team. Barrie joins from SNR Denton,
where he was a partner.
Alexander Proudfoot
Paul Carvell has been appointed as
head of business services at the
operational improvement consultan-
cy. Carvell, who was previously chief
executive of Business Post Group,
has more than 30 years’ experience
in logistics, supply chain manage-
ment and transport.
Barclays Corporate
Mark Lee has been appointed as
head of manufacturing, transport
and logistics at Barclays Corporate,
reporting to Graham Buckland, head
of London industry teams. Prior to
Barclays, Lee worked at the Royal
Bank of Scotland.
KPMG
The consultancy group has appointed
Dan Roman, formerly of Ernst &
Young, as a partner in its hedge
funds tax practice.
Investor Relations Society
Richard Davies will retire as chair-
man at the society’s annual general
meeting on 21 June, to be replaced
by John Dawson, currently deputy
chairman and director of investor
relations at National Grid.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS l Tate & Lyle ANALYSIS l Serco Group ANALYSIS l Future Plc
600 p 620 p
573.00 30 p
21.00
1 Apr 548.00 1 Apr
580 600 1 Apr 28

560 580 26

540 560 24

520 540 22

500 520 20
14 Feb 21 Feb 28 Feb 7 Mar 29 Mar 14 Feb 21 Feb 28 Feb 7 Mar 29 Mar 14 Feb 21 Feb 28 Feb 7 Mar 29 Mar

TATE & LYLE SERCO FUTURE

RBS rates the UK speciality food producer “buy” and ups its target price
from 580p to 625p following a positive trading update and the sale of its
Fort Dodge ethanol plant to Cargill for £36m. Though the sale is at a sig-
nificant shortfall to the £234m of investment it had made, the broker still
sees significant cash benefit. Normalised profits before tax are raised
from £251m to £259m, taking earnings per share from 45.1p to 46.5p.
The announcement of successful bidders for the Work Programme last
week brought disappointment for the support services firm, but Espirito
Santo maintains its “buy” rating, believing that the firm’s track record of
delivery, scale, breadth of service and geographic spread will continue to
underpin attractive growth. The broker estimates the impact equates to
only a one per cent headwind to forecasts, and sets a target price of 680p.
Altium Securities reiterates its “sell” recommendation for the Bath-based
publishing firm, following an interim management statement that sub-
stantially reduced profit guidance for the full year. The company’s shares
fell 11 per cent following the warning, but the broker warns that further
underperformance is likely, as planned digital gains may not compensate
for print advertising declines. The target price is reduced from 27p to 19p.

WALL STREET WEEK AHEAD

T
HE Standard & Poor’s 500 index
is poised to hit its highest mark
in nearly three years this week
after more signs of life from the
jobs market, but think twice before
betting the house.
Many investors are coming to the
view that the US employment situa-
tion has turned a corner, but the risks
that sent stocks cascading between
mid-February and mid-March are as
real as ever.
In addition, the surprisingly robust
recovery shown in recent economic
data has some investors nervous that
the Federal Reserve may end its easy
money policies before schedule and
increase interest rates in the second
half of the year.
That could spell trouble for risk
assets such as stocks and commodi-
ties that have benefited from the
added liquidity provided by the Fed’s
$600bn Treasury bond buying. The
programme, known as quantitative
easing, or QE2, is slated to end in
June.
“The Fed is now going to much
more seriously consider early with-
drawal of QE2 because these numbers
are getting stronger,” said Kenneth
Polcari, managing director at Icap
Corporates, a floor broker at the
NYSE.
One Fed official poured cold water
on that idea on Friday, saying he saw
no reason to reverse course even as
the economy adds jobs. The com-
ments helped cement optimism over
the jobs data.

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starts with Investec Ladies’ Day on Friday 3rd June, followed by Investec Derby Day on Saturday 4th June.
Hospitality packages are available. Book ahead and you can be there for the whole show.
Book now: 0844 848 3256 | epsomdowns.co.uk
18 CITYA.M. 4 APRIL 2011

Wealth Management Spread Betting |

THE TIPSTER
NOT JUST
ANY SHARE
Taking a punt
T
INCREASE...
HIS week sees a fourth quarter trading
update from Marks & Spencer. The
impact of the VAT hike, rising commod-
on FTSE 250
ity prices and careful consumers will
make for interesting reading. With so many
others on the high street struggling, there is no
real hope of a good performance from M&S.
Overseas ambitions may well help in the
longer term, but are unlikely to be enough to
compensate for a drop in traditional, store-
companies
based demand from this retail mainstay.
Current IG Index price is 335.96p-336.84p Betting on, instead of owning, shares
BP had been on a downtrend since the
beginning of the week, falling around 30p, has lots of advantages if you are fine
but on Friday it received a boost from
JPMorgan, who issued a bullish note. This
weekend’s good news on exploring in the
taking on the risk, says Philip Salter
Gulf of Mexico will also help, despite

Russian uncertainties. The recent strength
in oil prices also underpins the share price.
Capital Spreads quotes 463.6p-464.2p for
BP’s shares.
ARM Holdings has so far offered the
best performance of the FTSE 100 from
the beginning of year to date and has just
broken above its 50-day moving average
while still some 70 off its high for the year.
This is still some way off the top end of the
range on the Relative Strength Index.
WorldSpreads offers a 578.4p-580.6p
spread.
J Sainsbury shares have fallen some 15
per cent from their early January highs as
sales growth slowed and lower disposable
income has affected sales. The slide has
paused on a long term support line going
back to mid 2008, but with this line now
very vulnerable, and food commodities
soaring yesterday on the back of US crop
reports, Sainsbury’s could well test
317/307p before we see a recovery. Spread
Co quotes 333.2p-334p on J Sainsbury.
The slew of poor updates from retailers
has pushed Kesa Electricals to the edge
of a precipice, which may see its shares
fall a further 10-15 per cent. The 10 per
cent fall last week from 131p to under
118p pushed it below an important sup-
port trend line at 120p that goes back to
2008. Past price history may suggest it
could hit 110p or even 100p soon. Spread
Co offers a spread on Kesa Electricals of
117.6p-117.9p
Craig Drake
T
HERE are tax, leverage and
other advantages to using
spread betting to get expo-
sure to equities. For some
investors, of course, these benefits
may not offset the time and skill
needed to negotiate the spread bet-
ting markets. However, some mar-
kets are easier than others to
manage, with the FTSE 250 the best
place to start.
The main advantage is that “any
profits you make on spread betting
are not subject to tax of any kind,”
says Michael Hewson of CMC
Markets. Unlike dealing directly in
equities, there is no capital gains
tax or stamp duty to pay. The only
tax downside is that “because it is a
bet, traders cannot offset losses
against capital gains,” says Manoj
Ladwa of ETX Capital.
Spread betting is a leveraged
product so the potential for profit-
ing on rising share prices is huge.
But this is a “double-edged sword”,
according to Angus Campbell of
London Capital Group. On the one
hand, being able to leverage your
position lowers the barrier to mak-
ing serious profits compared with
owning the equities, but on the
other hand, traders can also lose a
lot very quickly, potentially more
than their original deposit.
The most popular individual
equities for spread betters belong
to the FTSE 100. qRio Tinto and
Barclays are highly liquid, well
traded, and volatile within a small
range. This means that for short-
term traders there will always be
some movement and profits to be
made. Ian O’Sullivan of Spread Co
says the smarter traders know how
to trade these by playing the levels
and using charts. However, the
skills required for such short-term
trading may be unfamiliar to equi-
ty investors so the FTSE 100 is
arguably not the best place to start.
With the FTSE 250, it is harder to
profit from day-to-day volatility in
the same way as the FTSE 100, yet it
offers an opportunity for new bet-
ters in equities. David Jones of IG
Index suggests that the FTSE 250
can be a good play over three or
four months. If traders use a quar-
terly contract – in which all the
costs are in the spread – they can
run their positions more like a
portfolio, provided they set up sen-
sible stop losses to offset the down-
side risk. Jones sees this as a “less
manic way” to spread bet. Good
recent bets on the FTSE 250 include than just owning the equity. Smaller more risk than comes with buying
Bodcote, SVG Capital, Mondi and cap firms outside the FTSE 250 can equities, even when dealing in the
Rightmove. An investor with a posi- be harder to deal in though, due to relatively longer-term FTSE 250. But
tion on Rightmove from 2009 their wider spreads, increased for any investors thinking of moving
could have had some of the action volatility and illiquidity. from equities to spread betting, dip-
in its steady rise from 160p to Alongside these advantages, ping your toe in the relatively calm
1,011p. A leveraged spread bet spread betters need to be more waters of the FTSE 250 is the place to
would have earned much more proactive and willing to take on start.

THE WEEK AHEAD in association with

COMPANY NEWS ECONOMICS NEWS POLITICAL NEWS

l On Monday, investors
will be keen to hear
EnQuest’s view on the
recent tax rise for North
Sea producers that was
included in last week’s
Budget. The steady rise in
oil prices should ensure a
solid set of results. Future
strategy and any change in
production targets may
have a further impact.
l M&S will release its
year end trading state-
ment on Wednesday. M&S
has been affected by
weak UK retail sales in
Jan/Feb, and it is believed
that it will suffer in the
food and clothing markets
despite the relatively
more robust finances of
its upper-mid market
customers.
l It is not expected that
the Bank of Japan (BoJ)
will change its monetary
stance in its meeting on
Thursday. The BoJ is likely
to continue to inject liquidi-
ty into the banking sector,
and it has raised note
issuance considerably as
the demand for cash has
risen.
l In the second of
Thursday’s meetings of
inert central banks, it is not
expected that the events of
the past month will have
done anything to close the
differences of opinion that
exist across the Monetary
Policy Committee (MPC).
Consequently there is little
chance of any change of
either the bank rate or
asset purchase facility.
Ladder Trading
l We can all breathe a
sigh of relief when the
House of Commons goes
into recess on Wednesday.
MPs will return to legislate
and levy taxes on 26 April.
l It is expected that US
President Barack Obama
will register as a 2012 re-
election candidate next
week, with the Federal
Election Commission filing
possibly coming as early as
Monday.
l The White House has
announced Israel’s
President, Shimon Peres, Professional Trading
will visit President Barack Professional Spread Betting
Obama next week. During a
working lunch planned for
Tuesday, the two leaders
www.ProSpreads.com
Spread betting can result in losses that exceed your initial deposit.
will discuss US-Israeli secu- Authorised and regulated by the Financial Services Commission, Gibraltar.
rity cooperation.
CITYA.M. 4 APRIL 2011
Jim Mellon: wise words
from a master investor
Philip Salter asks entrepreneur and investment guru
Jim Mellon for insights on taxes and trading trends
WHAT ARE YOUR FAVOURITE MARKETS
TO TRADE IN?
Forex and indices.
WHAT ARE THE ADVANTAGES OF SPREAD
BETTING?
Tax, convenience, leverage and cost.
WHAT IS THE MOST COMMON
MISTAKE MADE BY TRADERS?
Sticking with losers.
WHAT IS THE MOST IMPORTANT LESSON
FOR A TRADER TO LEARN?
Don’t trade unless you have a high
degree of confidence in the outcome.
IN THE PAST YOU HAVE SUGGESTED
SHORTING THE EURO AGAINST THE
DOLLAR. IS THIS STILL A GOOD BET?
This is still a very good trade but you
need to change your mind on a
dime. I think the euro is des-
tined to go to 1.20 against the
dollar in the next two years.
WHICH EMERGING MARKETS
ARE YOU MOST EXCITED ABOUT?
Turkey and Brazil. Turkey is
undervalued; Brazil is resource
rich and a real country – most
Latin American countries
are still small scale
and dangerous.
YOU HAVE
TIPPED SOLAR
ENERGY AND
The FTSE 250 could BIOSCIENCE
be the best place to AS AREAS FOR
make a splash when THE FUTURE.
spread betting equities DO YOU STILL
BACK THEM?
I do, particu-
larly bio-
science. My
new book on
19
TRADE BETTER
BY REVIEWING
YOUR RESULTS
TOM HOUGAARD
CONSULTING ANALYST, INTERTRADER
this will be out before the end of the
year. “Don’t trade
WHAT IS IN STORE FOR THE UK?
Very low growth and a poor housing
unless you
have a high
H
market. ERE is an exercise that my own trading coach
Steve Ward taught me. I may be paraphras-
YOU HAVE PREDICTED THAT HOUSES
WILL FALL 50 PER CENT FROM PEAK TO
degree of ing, but to the best of my recollection these
are his exact words:
TROUGH IN THE UK – ARE YOU STILL
WAITING FOR FURTHER FALLS?
confidence in “Tom, you will never make the progress you
want, if you don’t go back and review your old
Yes. The slow attrition of housing
prices will persist for the next two
the outcome” trades. On your losing trades, you have to ask your-
self if you could have done things differently. Was
years. the entry well defined? Was the stop in the proper
place? On winning trades, you have to ask yourself
DO YOU THINK GEORGE OSBORNE IS if you got out too early, too late or timely. Could you
GOING FAR ENOUGH? have added to the winning position, rather than just
On the cuts side yes, but he needs to be sitting back and watching the trade?”
much more radical on taxes. The Laffer Today I traded euro-sterling, and I bought it at
curve works. £0.8793 with a stop at £0.8775. The entry was
perfect, for about a minute, then the market sank
WHEN COMPETING IN lower. It spiked lower to £0.87743, then reversed
MARATHONS, ARE YOU ABLE hard up, and is now trading at £0.8820. So I got
TO SWITCH OFF? stopped out on a spike by half a pip, and it is now
I think about everything, sitting exactly where I would have liked it to be. In
from “did I switch off the my diary, I noted calmly that, since I was trading
gas?” to “is the yen with the daily and the four-hour time frame, I prob-
cheap?” ably needed to have a slightly wider stop than I did.
Otherwise everything was fine. It was just one of
Jim will be speaking at the UK’s those trades that didn’t work out. I also took a
largest investor show, Master snapshot of the before/after chart, for reference. I
Investor at the Business have learnt more from reviewing my old trades
Design Centre in than from any book or any course I ever took.
Islington on the Happy trading.
16 April. There The views and comments in this article are not
are 20 pairs of the views of InterTrader.com. The provision of this
free tickets for information should not be construed in any circum-
City A.M. stances as a recommendation or solicitation to buy
readers. or sell any security or financial instrument.
Call on l In my last two articles, I wrote about a trading
0 16 2 4 6 4 1 setup, and named it after Eva Mendes, simply
310 or email because it is as near to perfection as they come.
mi2011 However, I understand from her solicitors that she
tickets@ took offence. I wish to publicly apologise for my
t1ps.com inappropriate gesture, which was well intended. I
Quote: “MI have nothing but admiration for her work and char-
11CAM”. acter and the setup was simply a reflection of that.
 20 Wealth Management | Markets CITYA.M. 4 APRIL 2011

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 Lifestyle
22 In association with CITYA.M. 4 APRIL 2011

| Travel

Live it up in Melbourne,
Australia’s city of plenty
E
ARLY morning Melbourne, the
A brilliant cafe culture, exciting food, world-class sun is rising, and we are drifting
over this modern metropolis and
wineries and outdoor sport has Esther Shaw enthralled its spectacular skyline of skyscrap-
ers and spires in a hot air balloon.
Rising high above the city, we gaze
down on icons such as the Melbourne
Cricket Ground (MCG), the Formula
One racetrack, Government House,
Melbourne Park, and the meandering
Yarra River far below.
When Melbourne hosted the
Olympics back in 1956, it was seen as a
quaint backwater, but this city, the sec-
ond biggest in Australia, is now dynam-
ic, cutting-edge, and sophisticated.
Penetrate the heart of the city, and
you will soon be hit by its multi-cultur-
al vibe, a heady mix of arts and culture
and a big dose of European chic. Walk
around its boulevard-style streets, criss-
crossed with tramlines and inter-
spersed with lanes and alleys teeming
with bookshops, jewellers and music
stores, and you’ll soon agree it deserves
its title as Victoria’s capital of cool.
With so much to do and see, you
need to plan your time carefully, but a
good starting point is the Eureka
Skydeck on the 88th floor of a towering
92-floor skyscraper, from where you
can enjoy a 360 degree view across the
city from the CBD to the Dandedong
Ranges and Port Phillip Bay.
For the non-faint-hearted (and non-
vertigo sufferers) it’s well worth trying
an experience known as “The Edge”,
which involves stepping into a 10ft
glass cube jutting out from the tower. retailers.
From this observation deck, the You’ll get to see the loft and base-
highest public vantage point in ment businesses, the boutiques that are
Melbourne, you can gaze down over unique to the city, and the chocolate,
the streets of the city a long, long way confectionary and cafes which send the
below. smell of fresh coffee wafting through
If, after that, you’re still looking for a the streets.
buzz, jump on the back of a Harley Spend a few hours getting under the
Davidson for a tour of the city’s sites skin of this city with a well-versed
with your very own bearded biker- guide, and you soon begin to realise
chauffeur. After meeting at a pre- that Melbourne is far richer in history
arranged pick-up in the centre of town, than you might have first imagined.
I was kitted out in helmet and leathers, While you’ll find it tricky to run out
and spent an exhilarating hour roaring of things to do in the city itself, if you
through the city and cruising out can tear yourself away for a few days,
along the open road to the beach sub- you’ll find there’s plenty more to the
urb of St Kilda – a kind of Brighton- state of Victoria than Melbourne.
down-under – complete with its very Just 45 minutes from the city is the
own theme park and pier. Yarra Valley – Melbourne’s premier
Once here, you’ll be in no hurry to wine-growing region. Home to acres of
leave, as there’s no better place to sam- vineyards and 40 cellar doors – the
ple the city’s food culture – the streets bushland is dotted with vines and
are brimming with cafes and cake mountain ash forests for as far as the
shops, as well as top-notch bars and eye can see.
bistros. If you’re looking for luxury travel,
For a slightly less adrenaline-filled take one of the Melbourne Private
introduction to the city, join one of the Tours, as these chauffeured excursions
Hidden Secrets walking tours which through the region can be personalised
take you from funky Federation Square to suit your itinerary.
– the new see-and-be-seen fusion of Spend your day stopping off at vine-
arts, eateries and museums in the city yards to find out how the wine is
centre – through the lanes and arcades crushed, fermented, and bottled, and
past designer start-ups and specialty get a peek behind the scenes with the
people who make it.
If you love your wines, I spent a very enjoyable few hours at
Dominique Portet (www.dominique-
but fancy something a portet.com), one of the newer wineries
in the Yarra Valley, tasting the estate’s
little different, then wines under the guidance of the uber-
charming Dominique, the ninth
head out to the recorded generation in this family of
vignerons dating back to eighteenth
Mornington Peninsula century France.
From here, I wobbled on to the beau-
and explore the region tiful TarraWarra Estate (www.tarrawar-
ra.com.au) – famous for its Pinot Noir
on horseback and Chardonnay – where visitors can
enjoy a lunch of delights such as saf-
CITYA.M. 4 APRIL 2011 In association with 23
THE RISE OF LONDON’S
TOWNHOUSE HOTELS
IN TOMORROW’S
NEWSPAPER

Left: the Melbourne

skyline; bottom left; TRAVEL NOTES | by Zoe Strimpel
the Yering Gorge
Cottages and
Federation Square.

BYBLOS’S NEW SEASON PACKAGE pyramid, surely. Easter weekend, Friday

To celebrate opening for the 2011 sea-
son, Saint Tropez’s most iconic hotel,
Byblos, is offering a seductive package
to entice early season weekenders.
Enticements are indeed numerous, with
an Alain Ducasse restaurant, Byni'z for
tapas and cocktails by the pool, a luxuri-
ous Sisley spa, recently refurbished
rooms and suites and the exclusive Les
Caves du Roy nightclub. Escapade pack-
age is £347 per night for 2 people
including breakfast and a gift. Not avail-
able on weekends in July and August. To
book, call +33 4 94 56 68 00 or go to
www.byblos.com
GLENEAGLES EASTER TREATS
Easter at Scotland’s grandest hotel,
Gleneagles, is full of delights – egg hunts,
bonnet parades and teddy bear making.
(Naturally.) Also on offer to keep the
kids enthralled is a circus. There’s no
chance of them of getting bored with
the chance to learn stilt-walking, jug-
gling, or the thrill of performing a human
22 April and Saturday 23 April, rooms
from £325 per person, including break-
fast. Children’s bed, breakfast and activi-
ties from £225 (based on two children
sharing their own room, per night). For
further information visit www.glenea-
gles.com or call Resort Sales on 0800
704 705.
SOFITEL’S NEW MOROCCO RESORT
Sofitel, the hotel group, has pushed its
luxury offering further into the limelight
with the new Essaouira Mogador Golf &
Spa (pictured), near the historical port
of Essaouira. Surrounded by 600
hectares of forest, natural sand dunes
and a pristine beach, the setting is idyllic.
Add in elegant design by Didier Gomez
and architect Rachid El Andaloussi and
the result is a wonderful continuity
between outside and in. An 18-hole golf
course and 1300 m spa confirm it as one
of the best places to stay outside
Marrakesh. From £148 per night,
www.sofitel.com.

fron-cured ocean trout, followed by
seared venison with sautéed chicory,
while sitting out on the terrace, gazing
out over the expanse of vineyards.
If you love your wines, but fancy
something a little different, then head
out to the Mornington Peninsula
which curves southwards from
Melbourne to Port Phillip Bay, and
explore the region on horseback.
Once you’ve slipped into the saddle
and bonded with your trusty steed, you
head off into the vineyard region of
Red Hill and Shoreham, dismounting
every now and then to sample a little
Melbourne and the Yarra Valley: eat, drink, stay, fly
of the local produce.
You’ll stop off at wineries such as T
Gallant (www.tgallant.com.au) and Ten
Minutes by Tractor (www.tenminutes-
bytractor.com.au) for a tipple – or, if
you can afford the time, a longer gour-
met lunch surrounded by the patch-
work of bushland, pasture, hills and
vineyards.
Sitting back in the southern
Australian sunshine, Pinot Noir in
hand, marveling at the breathtaking
vineyards before me, I can think of few
better ways to while away an afternoon
– or two.
For more info: Global ballooning (global-
ballooning.com.au) costs from AU$315 per THINK ROOMS... with
person; the Eureka Skydeck and the Edge
Experience (eurekaskydeck.com.au) costs
AU$28.50. The Harley Davidson tour with
HD Chauffeur Ride
(www.harleyrides.com.au) costs from
AU$115.50, and the Hidden Secrets tours ROYCE HOTEL 5*
(www.hiddensecretstours.com) cost AU$115
per person. A tour of the Yarra Valley with
379 St Kilda Road | Melbourne | VIC 3004
Melbourne Private Tours Having once been a Rolls Royce showroom, this
(melbprivatetours.com.au) costs from hotel certainly hasn’t forgotten its exclusive roots. It
AU$560 for one person, while the Horseback lies next to the Royal Botanic Gardens on
Winery Tours (horsebackwinery Melbourne’s famous boulevard, St Kilda Road, and
tours.com.au) cost from AU$110 per person. boasts lovely boutique décor blended with a touch
of glitz and glamour. The award-winning ‘Dish’
restaurant is a delight and it even includes the
Royce Ballroom – see, we told you it was glamorous!

WHERE TO STAY (movida.com.au), or if you fancy some- THE WESTIN MELBOURNE 5*

The Olsen, set in South Yarra, is one of
the Art Series Hotel Group (art-
serieshotels.com.au) along with the
Cullen and the Blackman – each of
which are named after renowned
Australian artists. The Olsen’s 229 five-
star suites are adorned with the works
of landscape artist Dr John Olsen,
while the interior of the Cullen, in the
south-eastern suburb of Prahran, is
filled with the cutting-edge works of
Adam Cullen, part of Australia’s
“grunge” art movement, whose paint-
ings take an irreverent view of
Australian outlaw, Ned Kelly and his
gang.
The Blackman showcases the works
of Charles Blackman, with an emphasis
on his large and spectacular Alice in
Wonderland paintings. Prices for a stu-
dio suite start from AU$209 per night.
In the Yarra Valley, make yourself at
home in one of the 12 Yering Gorge
Cottages (yeringcottages.com.au) on
the banks of the Yarra River, each of
which offers a spacious open-plan liv-
ing area, wood-burning stove, fully-
equipped kitchen and jacuzzi.
Once you’ve set foot inside, you’ll
feel a world away from the city – espe-
cially once you set eyes on the herd of
kangaroos which cavort outside the
cottages each day at dawn and dusk.
A one-night stay in a one-bedroom cot-
tage starts from AU$259 per night,
including a breakfast basket delivered
to your door each morning.
WHERE TO EAT AND DRINK
Food is one thing Melbourne does
extremely well, and for top-notch
tapas head to Mo Vida Aqui
thing French, Harvey’s (harveysrestau-
rant. com.au) is one of the city’s
favourites; best-known for breakfast, it
is also a fabulous venue for both lunch
and dinner.
If you want to splash out, book a
table at Vue de Monde
(vuedemonde.com.au) in the historic
Normanby Chambers building in the
heart of the CBD for a real treat of
classical fine dining.
And, if you want to head on into the
night, top watering holes include the
bar and live music venue, Toff in the
Town (thetoffintown.com) on
Swanston Street, and the swanky
rooftop bar, Siglo on Spring Street sit-
uated just above the popular
Melbourne Supper Club.
HOW TO GET THERE
Economy flights from Heathrow to
Melbourne via Doha with Qatar
Airways (www.qatarairways.com/uk)
start from £833; the scheduled flight
time is 21 hours and 40 minutes.
205 Collins Street | Melbourne | VIC 3000
Head to the heart of this eclectic city and enjoy a
chic and elegant stay at The Westin Melbourne. It’s
the place to be to experience all the surrounding
theatres, designer boutiques, galleries and attrac-
tions that Melbourne has in abundance. And the
hotel’s tranquil Wellness Centre is certainly the
place to relax and rejuvenate too. Or why not try a
special Westin ‘In-Room Spa’ instead?
THE BLACKMAN 5*
452 St Kilda Road | Melbourne | VIC 3004
If you have an eye for art, or even if you haven’t,
you’ll love this luxurious yet quirky stay on St Kilda
Road. An Art Series hotel, The Blackman is inspired
by one of Australia’s most celebrated artists,
Charles Blackman, and his striking and edgy work
is showcased throughout. The rest of the stylish
décor is impressive in itself and it all combines to
create a unique hotel with real flair!
To book your stay at any of these fabulous hotels, or to discover a whole world of other
accommodation possibilities, visit LateRooms.com or call 0161 831 3894.
 24 Lifestyle | Hotels CITYA.M. 4 APRIL 2011

A unique blend of An Eames chair, just

one of the furnish-
ings tailored for the
rooms at the

Swiss refinement
Widder.

Nine historic parts of the little complex are the

twelfth century walls in the library.
townhouses make The gothic window alcoves, the carv-
ings and the (working) fireplaces that
the buildings have accrued since
up Zurich’s most those walls were built are retained
without in any way impairing the
beguiling hotel, Swiss-clock efficiency of the hotel.
There’s a gym, function rooms and
writes Alex Deane a business centre equipped just as
they should be. The concierge knows
every twist and turn of his city.

T
HE well-heeled traveller auto-
matically thinks of the impos-
ing Dolder Grand when staying
in Switzerland’s financial cen-
tre. He is wrong to do so.
Filling nine lovingly restored, his-
toric townhouses in the very heart of
Zurich, the Widder Hotel is a deluxe
little hotel in a quiet street just off
Bahnhoffstrasse, the top class shop-
ping street. The effort that has gone
into preserving beautiful original fea-
tures while creating a genuinely first
class hotel over the past fifteen years
There’s wireless throughout. But the
point about this hotel is the extras,
not the ticked boxes.
Guests are issued with person-
alised, attractively printed business
cards with your direct line and the
hotel’s details, to give to contacts if
you wish whilst you’re in Zurich. Each
suite comes with a courtesy iPad for
the duration of your stay. The Bang
and Olufson sound system in each
room is perfect. Eames chairs unique
to the hotel are in each room.
And you’re treated like a grown-up

is quite extraordinary. The oldest
@
here. The windows actually open (the soundproofing is total when they’re
closed – and the only noise is the
sound of church bells anyway). One
can smoke in one’s room, and – a
vociferous non-smoker being with me
on our stay – I can say that there’s
genuinely no smell of smoke in
rooms later. There is provision made
for smokers as well as non-smokers in
the hotel’s three restaurants. The bar
features the country’s biggest collec-
tion of single malts, and hosts (good)
jazz nightly, which can only be heard
in the bar; you simply wouldn’t know
it was going on in any other room.
ed to suit each room, each of which
has been tailored uniquely by a
designer. Each of the nine houses has
its own subtle but distinct style and
atmosphere, from the hand-carved
curlicues to the individually designed
doors and rich paintings. This is a
hotel that remembers and values
every detail of décor and of your stay.
This is the antithesis of the standard
large luxury hotel with identikit
rooms and identikit staff – and it is all
the better for that. It cannot be rec-
ommended more highly.
Rooms from 560 CHF (£380) per night–

@
The hotel is spotlessly clean. details available onine: www.widder
Each aspect of decoration is select- hotel.ch

Luxury for less

Award winning 4 star luxury hotels in London

@
Book now and take advantage of our amazing Smartphone?
Scan the code to
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Apex City of London Hotel From £79*

Apex London Wall Hotel From £89*

Top 15 rated hotels out of over 1000 London hotels

reviewed on TripAdvisor®**

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* Subject to promotional room availability. Available between the 24th and 30th of April. Rates on a
room only basis in a standard room and inclusive of VAT. This offer cannot be booked in conjunction
with any other offer and is valid for new bookings only. Full payment is required at the time of booking
and is non-refundable. ** At date of going to press.

Book online at
apexhotels.co.uk
MORE NEWS or call 0845 365 0000
ONLINE  

Apex Hotels  

 
  

  

 

www.cityam.com
 Business Features | Entrepreneurs
25

Real world social networking helps to

keep the Silicon Roundabout turning
Donata Huggins
speaks to London’s
coolest tech start-ups
about how they keep
their creative juices
flowing in Old Street

F
ORGET Silicon Valley and
Cambridge’s Silicon Fen, the Silicon
Roundabout celebrated by David
Cameron in a speech late last year is
the UK’s newest and coolest hub of entre-
preneurship. Dozens and dozens of IT start-
ups lie just around London’s Old Street
roundabout, spreading into Shoreditch
and further east. The area’s cheap rent
drew them in initially, but now serves to
facilitate what economists call
“clustering.” Clustering is not just what the
gentlemen in the pictures on this page are
doing, but it is part of it. Businesses often
benefit from grouping together in the
same area because it allows easy network-
ing and the sharing of ideas, and people
looking for their services know where to
find them.
At the start of this year, City A.M. asked
investors in new enterprise what type of
business they were looking for. Almost all
those questioned said they had their sights
set on east London, searching out the next
Facebook. Some took this more seriously
than others. Just last month Index
Ventures, a venture capital firm, moved software and commands a high price for
into one of the shared office spaces that are his services. Motley designs the framework Above: Ollie Maitland,
popular in the area alongside Moo, a digital for the products Byng fleshes out and sells. founder of Byng
design and print company. And Push Technologies collaborates with Systems (left, in glass-
The shared office space is just one way Byng on projects for their customers. It all es), and Sean Bowen,
that the silicon community is making the turns on an intricate web of relationships. founder of Push
most of their cluster. Three of the people Bowen explains: “Push isn’t based out Technology (centre)
pictured here – Ollie Maitland, Sean Bowen here, but I come down here a lot to work socialising in The Book
and Ross Motley – are fine examples of how with these guys. I’m an ex-City boy and Club in Shoreditch
the area’s dynamic works. Maitland’s com- work with banks, so it’s all a bit too trendy
pany Byng Systems designs cloud comput- for my liking. This stuff seems to keep the Right: Maitland just
ing software, Bowen’s company Push creative juices flowing for them – and before a game of ping-
Technology pushes content around the that’s all good.” pong
internet at super speed and Motley is what Maitland thinks the environment helps:
is known as a “nomad”. An Imperial “Being based out here is great for business.
College maths graduate and part-time DJ, IT start-ups need to be based around here to
Motley is a freelance software architect. He attract the best creative people. They’re
comes up with the original outlines for attracted to the atmosphere.”

SOME OF THE SILICON ROUNDABOUT’S HOTTEST STARS

Songkick: An online database of concerts, Byng Systems: Designed cloud computing
tour dates and festivals. www.songkick.com software company.
www.byng-systems.com
SocialGO: A service allowing users to create
private social networks. www.socialgo.com Horsesmouth: Social network for informal Right: Maitland chat-
mentoring groups. ting with Ross Motley,
Tweetminster: Connecting users to UK politi- www.horsesmouth.co.uk a “nomadic” software
cians and news. architect
tweetminster.co.uk Floxx: An anonymous location-based flirting Pictures:
website. Micha Theiner
Smarkets: Sports betting website. www.floxx.com /City A.M.
www.smarkets.com
Last.fm: The world's largest online music cata-
TweetDeck: Twitter browser that connects logue. www.last.fm
different applications.
www.tweetdeck.com WhoSampled: A database of sampled music.
www.whosampled.com
FactSet: Supplier of market data and econom-
ic information for financial investors. My Neighbourhoods: A local neighbourhood
www.factset.com platform to help you meet your neighbours.
www.myneighbourhoods.co.uk
Moo: A printworks that turns virtual content
into printed material. Shooting People: Independent film-making
www.moo.com distribution network. www.shootingpeople.org
 26 Lifestyle | TV& Games CITYA.M. 4 APRIL 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Bang Goes the Theory;
BBC News
8pm CHOICE EastEnders
8.30pm Finished at Fifty? –
Panorama
9pm Waking the Dead
10pm BBC News
10.25pm Regional News 10.35pm
A Question of Sport 11.05pm Late
Kick Off 11.35pm FILM The Big
Easy: 1987; Weatherview 1.20am
Sign Zone: MasterChef 2.20am
Sign Zone: Silk 3.20am Sign Zone:
Arctic with Bruce Parry
4.20am-6am BBC News
6pm Eggheads
6.30pm Great British Menu
7pm The Great Rift: Africa’s
Wild Heart
8pm University Challenge: The
Grand Final. Last in the series.
8.30pm CHOICE Lambing
Live:
10pm Never Mind the
Buzzcocks
10.30pm Newsnight; Weather
11.20pm Louis Theroux: America’s
Most Hated Family in Crisis
12.20am The Brain: A Secret
History: Scientists’ efforts to
understand emotions. 1.20 An
Island Parish 1.50am BBC News
4am-6am BBC Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm Coronation Street 7.55pm 4thought.tv 7.30pm How Do They Do It?;
8pm The Dales 8pm Dispatches: Cashing in on 5 News Update
8.30pm Coronation Street Degrees 8pm The Gadget Show;
9pm Law & Order: UK 9pm One Born Every Minute 5 News at 9
10pm ITV News at Ten 10pm Heston’s 70s Feast 9pm FILM Executive Decision:
10.30pm London News 11.05pm CHOICE The Event Action thriller, starring Kurt
12.05am Music on 4: The Album EASTENDERS
10.35pm Real Crime: A Shot in Russell. 1996.
Chart Show Introduces – Katy B BBC1, 8PM
the Dark 12.20am Music on 4: 4Play: Gypsy 11.45pm FILM Undisputed: Jack fears his marriage is on the verge
11.35pm River Monsters and the Cat 12.40am European Boxing drama, starring Ving of collapse, and urges Ronnie to open
12.30am The Zone; ITV News Poker Tour 1.35am Rome Wasn’t Rhames. 2002. up to him about her emotional
Headlines 2.35am UEFA Champions Built in a Day 2.30am Royal Deaths 1.30am SuperCasino 4.05am The problems.
League Weekly 3.05am The Jeremy and Diseases 3.25am Codex FBI Files 4.55am Animal Rescue
Kyle Show 3.55am-5.30am ITV 4.20am The Bible: A History Squad 5.10am Wildlife SOS
Nightscreen 5.15am-6am Ugly Betty 5.35am-6am House Doctor

SKY SPORTS 1 12am WWE: Afterburn 1am Weddings 10pm Step Kids Don’t 1am Ugly Betty 1.45am Beauty Colour 4.40am Nasa’s Greatest
SATELLITE & CABLE

7pm US Masters Official Film –
Ballesteros 1983 7.30pm Live
Football League 10pm Masters –
Golf’s First Major 11pm Premier
League Review 12am Netbusters
12.30am SPL Round-Up 1am
Football League 2.30am Sports
Unlimited 3.30am Watersports
World 4.30am Max Power
5.30am-6am FIFA Futbol Mundial
SKY SPORTS 2
7pm The Sky Sports Years 8pm
How the 2011 ICC Cricket World
Cup Was Won 10pm The Sky
Sports Years 11pm Soccer AM:
The Best Bits 12am How the 2011
ICC Cricket World Cup Was Won
2am NASCAR 3am European Tour
Golf 4am-5am PGA Tour Golf
SKY SPORTS 3
7pm Wild Spirits 7.30pm Live
Speedway 9.30pm Wild Spirits
10pm WWE Hall Of Fame 11pm
WWE: Late Night – Bottom Line
WWE: NXT 2am Live WWE: Late
Night – Raw 4.15am-5.15am
WWE Hall Of Fame
BRITISH EUROSPORT
5.30pm MotoGP 7.30pm
Strongest Man 8.30pm Cycling
9.30pm Live Curling 11.30pm
Rallying 11.45pm-12.45am
Cycling
ESPN
6.30pm Talk of the Terrace 8pm
French Top 14 Rugby Union
8.30pm Premiership Rugby Union
10pm Between The Lines
10.30pm ESPN Pardon the
Interruption 11pm ESPN Game of
the Week 11.30pm This Week in
Baseball 12am Live Major League
Baseball 3am Live NHL Ice Hockey
5.30am-6am ESPN Press Pass
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Katie 9pm Four
Ruin My Big Day 11pm Criminal
Minds 12am Ghost Whisperer 1am
CSI: Crime Scene Investigation
2.40am Charmed 4.20am
Nothing to Declare 5.10am-6am
Maury
BBC THREE
7pm Doctor Who 7.45pm Doctor
Who Confidential 8pm Snog,
Marry, Avoid? 8.30pm The Lock
Up 9pm My Brother the Islamist
10pm EastEnders 10.30pm
Bizarre ER 11pm Family Guy
11.45pm My Brother the Islamist
12.45am Bizarre ER 1.15am Police
Academy UK 2.15am The Lock Up
2.45am Snog, Marry, Avoid?
3.15am A Dangerous Place to
Meet My Family 4.15am-5.15am
Police Academy UK
E4
7pm Hollyoaks 7.30pm Friends
9pm Glee 10pm Great British
Hairdresser 11pm Beauty and the
Geek 12am My Name Is Earl
and the Geek 2.25am Important Missions 5.30am-6am Destroyed
Things with Demetri Martin in Seconds
2.50am David Blaine: Drowned
Alive 3.35am Privileged DISCOVERY HOME &
4.15am-6am Switched
HEALTH
LAMBING LIVE
HISTORY 7pm A Baby Story 8pm Kate: Her BBC2, 8.30PM
7pm America: The Story of the US Story 9pm Trauma Unit 10pm New series. Kate Humble and Adam
8pm Pawn Stars 9.30pm Mud Untold Stories of the ER 11pm
Henson reveal the challenges and risks
Men 10.30pm IRT Deadliest Critical Condition 11.30pm A&E
faced by sheep and their owners on a
Roads 11.30pm Pawn Stars 12am 12am Trauma Unit 1am Untold
Stories of the ER 2am Critical
farm during lambing season.
Mud Men 1am Pawn Stars 2am
IRT Deadliest Roads 3am America: Condition 2.30am A&E 3am Kate:
Her Story 4am Bringing Home
The Story of the US 4am The
Baby 5am-6am A Baby Story
Universe 5am-6am Ice Road
Truckers
SKY1
DISCOVERY 8pm Rooftop Rainforest 9pm Ross
8pm How Do They Do It? 8.30pm Kemp in Search of Pirates 10pm
How It’s Made 9pm Mythbusters: Spartacus: Gods of the Arena
Testing a famous assassination 11.15pm A League of Their Own
attempt. 10pm Dual Survival 11pm 12.15am Night Cops 1.15am Road THE EVENT
Monsters Inside Me 12am Bear Wars 2.10am Glenn Martin, DDS CHANNEL4, 11.05PM
Grylls: Born Survivor 1am 2.40am Cold Case 3.30am Lost President Martinez and Blake Sterling
Deadliest Catch 2am Future 4.20am Dom Joly’s Happy Hour have the Sleepers surrounded – but
Weapons 3am Hitler’s Henchmen 5.10am-6am Liza and Huey’s Pet negotiations have to take place when
3.50am World War Two in HD Nation Sophia triggers a national disaster.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
8 13 18 5 15 21
16 4 10
27 33 7     
45
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 11
23 12
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 30 14  
above or to the left of it. 20 26 14
You can only use the digits 1-9 6 34
  and you must not use the
35
12 22 7     
same digit twice in a block. 18 28
   The same digit may occur 16 22 
22
     more than once in a row or
column, but it must be in a 3
17
11
10
 
13 15
   separate block.
6 13 14
45
  9 6 17


   ACROSS DOWN
2 Trait of lacking 1 Republic in Central
    
   WORDWHEEL R A
courage (9)
6 Bring dishonour
upon (5)
America (5,4)
2 American raccoon (5)
3 In what place? (5)
Using only the letters in the Wordwheel, you have 8 Iridescent internal layer 4 Hindu queens (5)
  ten minutes to find as many words as possible,
E W of a mollusc shell (5) 5 Deserving of a
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters D 11 Discolour, usually with
use or wear (7)
scratch (5)
7 Relatively coarse lace
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
B I 12 A Town Like ___,
Nevil Shute novel later
made by weaving and
knotting cords (7)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
Y L made into a film (5) 9 Bedazzle with
13 Painful eyelid wonder (7)
QUICK CROSSWORD 1 3 7 4 1 2 7 swellings (5) 10 Elliptical chocolate
S I N B A D A M
7 6 9 8 3 5 1 9 SUDOKU          14 Perfect type (5) treat associated with
T O A T O M I C
4 8 2 1 9 6 8
         17 Fruit pulp (5) a spring festival (6,3)
9 7 4 2 1 6 3 5
O P E N A I R O C          19 Suppose (7) 15 Number (5)
I S S I G N O 1 2 6 5 9 8
C H E A P P G U Y 3 1 4 2 2 5 1 3
         20 Hand tool for 16 Immature insect (5)
boring holes (5) 17 Fragment (5)
WORDWHEEL
D I S C U S S 8 9 3 7 5
        
9
S R I Y P A T C H
3 4 7 5 1 2 3 7          21 Derive, evoke (5) 18 Put back into service
O T A C T L A
L I H O R I Z O N
1 7 9 6 9 8 7 The nine-letter word was          22 Private conversation after processing (5)
A Z O R E S V K 4 8 3 4 7 6 8 9          between two
R N S C A N T Y 5 9 1 2 1 2 3
TURNTABLE         
people (4-1-4)
CITYA.M. 4 APRIL 2011
Kirsten and Dhoni deserve India’s adulation
CRICKET COMMENT
ANDY LLOYD
C
ELEBRATIONS in India are prob-
ably only just starting to die
down after Saturday’s thorough-
ly deserved World Cup final vic-
tory over gallant losers Sri Lanka.
Sachin Tendulkar is currently
bathing in unprecedented adulation,
Five-star City
swagger back
into top three
MANCHESTER CITY 5 prised we won by five goals but I am
SUNDERLAND 0 winger Johnson, who netted a fine
▲
FOOTBALL
BY FRANK DALLERES
MANCHESTER CITY manager Roberto
Mancini toasted a fruitful weekend
after seeing his side capitalise on
their rivals’ failings with a swash-
buckling rout of woeful Sunderland.
Adam Johnson, Carlos Tevez, David
Silva, Patrick Vieira and Yaya Toure all
scored as City leapfrogged Chelsea
and moved to within touching dis-
tance of second-placed Arsenal.
“I am very happy because we got
three points, moved above Chelsea
and are now just three points behind
Arsenal. It’s true they both have a
game in hand, but this was a good
day for us,” said Mancini.
“This was an important weekend
for us, too – a big weekend will be
when we win something – but it was
Saracens look bound for the play-offs
as Stevens steals show against Bath
▲
RUGBY UNION
BY JAMES GOLDMAN
ENGLAND World Cup hopeful Matt
Stevens produced an inspired display
against his former side Bath as
Saracens tightened their grip on sec-
ond place in the Premiership with a
20-9 victory.
The South African-born prop,
capped 32 times by England but not
once since 2008, faced his former
club for the first time since leaving
the Recreation Ground in the wake of
failing a drugs test that landed him
with a two-year ban. Winger David
but when the hype and hysteria dissi-
pates, the two men all of India should
look to thank above any other are
their coach Gary Kirsten and
captain MS Dhoni.
The two have dovetailed
superbly and worked hard
to unite a side whose talent
was unquestionable,
but one which had
become unmanage-
able such was the
abundance of egos
in the dressing
room.
As a off on his
c o a c h ,
Kirsten has
instantly
important, nonetheless. I was sur-
not complaining.”
Mancini singled out England
opener, and striker Mario Balotelli,
even though he was one of the few
who did not trouble the scoresheet.
“Johnson is a very important player
for us and we have missed him
because he is the only player in our
squad who can play the role he does,”
he added. “Mario was much better
today, he worked hard for the team,
was strong, didn’t get involved with
the referee or opposition and concen-
trated on what he needed to do.”
Johnson swapped passes with
Toure to score after just nine minutes
and Tevez doubled the lead on a quar-
ter of an hour with a penalty after he
had been fouled by Phil Bardsley.
City crowned the win with three
goals in 10 second-half minutes. First
Silva tucked away a rebound and
then Vieira turned home Aleksandar
Kolarov’s drilled cross, before Toure
capitalised on Lee Cattermole’s suici-
dal back-pass.
Strettle enjoyed a lively afternoon
and scored the only try while
Alex Goode kicked five
penalties, but it was the
forwards that did the
real damage.
“I came into
Saracens with every-
thing sorted out.
Week on week it’s
something I keep an
eye on and I’m in a
very stable environ-
ment,” said Stevens
(right). “It’s not just about
what happens on the park and
become one of the hottest properties
in cricket. If I were him I’d sit
back and let the offers
flood in; he won’t be short
of any.
He’s exceptionally thor-
ough in his preparation
and accepts noth-
ing short of total
commitment
and if you
want tangi-
ble evidence
of how that
has rubbed
side, just
take a look
at how
TOP FIVE
TEAM
Man Utd
Arsenal
Man City
Chelsea
Spurs
Tevez struck his first league goal since February
that has made it easy to stay focused
and be healthy. I feel like a 20
year-old who’s just started
the game.”
Elsewhere, London
Irish boosted their
hopes of a top-six fin-
ish as they came from
behind to beat Wasps
25-12 at the Madejski
Stadium. The visitors
had held an early 12-3
lead but Exiles winger
Tom Horner then kicked
six penalties and a try from
David Paice settled matters.
India have improved to become one of
the best fielding teams around.
Dhoni, meanwhile, represented
something of a wildcard choice when
he was given the captaincy, but the
decision to do so was inspired. Being
handed the leadership of the team
has matured him no end, not only as
a person but also as a batsman.
When he first burst onto the scene
he was all about big, extravagant
shots . There was not a bit of that in
Mumbai on Saturday, though, and it
was fitting that his innings helped get
his side over the line.
India are now world champions,
top of the Test rankings and heading
here this summer – if you’ve got a
ticket you won’t be disappointed.
PLD W D L F A PTS
31 19 9 3 68 32 66
30 17 8 5 59 29 59
31 16 8 7 50 27 56
30 16 7 7 54 25 55
30 13 11 6 41 34 50
Picture: ACTION IMAGES
SPORT | IN BRIEF
Horsey plays up Morocco victory
GOLF: David Horsey won a three-way
play-off in the Trophee Hassan at the
Royal course in Morocco. The 25-year-
old had a hole-in-one at the second but a
double bogey at the last meant he had
to battle with Rhys Davies and Jaco
Van Zyl in a play-off. Horsey played a
fine iron shot to within two feet for a
birdie at the second extra hole to claim
the title.
Bale winning Madrid fitness race
FOOTBALL: Tottenham winger Gareth
Bale has flown to Spain with his team-
mates ahead of tomorrow’s Champions
League quarter-final against Real
Madrid. His manager Harry Redknapp
claims the Welshman has an 80 per
cent chance of playing. Defender Alan
Hutton is out for the season with a knee
injury he picked up in training last week.
Sport 27
PS A POINTER FOR ENGLAND
SRI LANKA will be feeling gutted at
having failed to give Muttiah
Muralitharan the perfect send-off but
the innings of Mahela Jayawardene
deserves a special mention.
If England need a lesson in how to
play a one-day innings on the subcon-
tinent, and on the evidence of the last
month they do, they should be sat
down and made to watch that knock.
It was an object lesson in timing,
patience and precision. Finding the
boundary by trying to hit the cover
off the ball is always a fast way back
to the pavilion. Jaywardene proved
this game will always be brain over
brawn. England should take note.
Results
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email sport@cityam.com
 Sport
28
GO TO HELL
Fulham chairman Al Fayed sparks fury among
fans by hitting out at critics of Jackson statue
▲
FOOTBALL
BY FRANK DALLERES
CHAIRMAN Mohamed Al Fayed has
provoked outrage among Fulham
fans after telling those supporters
critical of his controversial statue of
Michael Jackson to “go to hell”.
Al Fayed, speaking after unveiling
his tribute to the deceased King of
Pop at Craven Cottage yesterday, also
suggested fans who did not like it
were not welcome and should follow
west London rivals Chelsea instead.
His remarks sparked such fury
among disbelieving Cottagers
fans that the club had to
delete a discussion
thread on their official
website in which sup-
porters were angrily
deriding Al Fayed
and the monu-
ment.
Al Fayed rounded
on his critics when
asked if he thought
it a little bizarre to
house the statue of
Jackson, a friend of his
but with little other associa-
tion with Fulham, at the club’s
ground.
“Bizarre? Why? Football fans love
it,” he said. “And if some stupid fans
don’t understand and appreciate
such a gift that this guy gave to the
world, they can just go to hell. I don’t
want them to be fans if they don’t
understand and believe in the things
that I believe in. If not, they can go to
Chelsea or to anywhere else.”
Tendulkar laughs off talk of Decision due today as FA
probe Rooney swearing
retiring ahead of England tour
▲
CRICKET
BY JAMES GOLDMAN
INDIA’S talisman Sachin Tendulkar
maintains thoughts of retirement
couldn’t be further from his mind
following Saturday’s World Cup final
victory.
A hundredth international centu-
ry may have eluded the Little Master,
as captain MS Dhoni and Gautam
Gambhir steered India to a six-wicket
victory over Sri Lanka, but with a
World Cup winners’ medal now part
of his astonishing array of honours
Tendulkar could be forgiven for call-
Fulham fans hit back at Al Fayed on
the club website’s forum, calling him
“misguided” and an “old fool”, while
his comments were labelled “an own
goal” and “a terrible, terrible PR
move”.
Others said they felt “infuriated”
and “disgusted” by the remarks,
while contributors largely poured
scorn on the statue itself, calling it
“laughable” and “a joke”. The thread,
entitled “Fayed is Off the Wall” was
eventually removed.
Fanzine editor David Lloyd, of
There’s Only One F In Fulham, strong-
ly defended Al Fayed’s tenure but
admitted his comments were
“potentially divisive”.
“To come out with that
is a bit brash but fairly
typical of him,” Lloyd
told City A.M. “The
chairman’s the
bedrock and what’s
keeping us afloat.
He has barely put a
foot wrong as chair-
man. I don’t think
it’s worth throwing
toys out of the pram.”
Al Fayed originally
intended the statue of
Jackson, who died in 2009, to be
displayed in Harrods but switched its
location to Fulham after selling the
Knightsbridge store last year. He
added: “It is nice to see a memory
that can stay forever. And it’s such a
beautiful statue.”
Jackson attended a game in 1999
with the chairman but was otherwise
not associated with the club, although
Al Fayed talked up his interest.
ing time on his 20-
year career.
But with a box
office tour of
England on the hori-
zon this summer, and
the chance to register
that landmark ton at
Lord’s, the 37-year-
old isn’t ready for
retirement yet.
He said: “No. This is a
moment to enjoy and celebrate.
It’s not about what I’m going to
do in the future. This is a spe-
cial moment which I really
“HIGH FIVE KEEPS
CITY IN THE HUNT”
JOHNSON BOOSTS
EURO HOPES: P27
Fulham’s Jackson
tribute has angered
a section of fans
Picture: Micha
Theiner/City A.M.
want to enjoy and live it to its
fullest.
“I started playing cricket
dreaming of lifting the trophy
one day and that is where it
all started. I am speechless
to be honest.
“This was the reason why
I started playing cricket. I
wanted to achieve something,
do something for the country.
The process has been a long
one and I’ve continued to
enjoy my game. I don’t see
any reason why I need to
change anything right now.”
CITYA.M. 4 APRIL 2011
Zamora makes
it easy as 1, 2, 3
FULHAM 3
BLACKPOOL 0
▲
FOOTBALL
BY JAMES GOLDMAN, CRAVEN COTTAGE
FULHAM manager Mark Hughes
believes his side can now turn their
attention to cementing a top half finish
after yesterday’s win over Blackpool.
The Cottagers are now six points
clear of the relegation zone and five
ahead of yesterday’s opponents who
were beaten by a Bobby Zamora first-
half brace and Dickson Etuhu’s first
Premier League goal since August.
Fulham are now up into tenth, and
with last season’s top scorer, Zamora,
now back to full fitness, Hughes is look-
ing forward to an enjoyable run-in.
“We’ve never wavered from the view
that we are a top-half team and obvi-
ously tonight we’re in that position,” he
said. “We’re something like three points
from seventh. It’s possible we can really
establish ourselves from now until the
end of the season in that top half.
“And that’s what we anticipated we
would do this season and obviously we
lost key personnel, Bobby being the
main one in that respect, and that ham-
pered our season. But we are really
starting to progress as a group and the
players are all really receptive.”
sion,” Brooking said yesterday. “It is
▲
FOOTBALL
something we will have to look at.”
MANCHESTER UNITED striker Wayne United, whose manager Sir Alex
Rooney will discover today whether Ferguson is serving a five-match
he is to face punishment for his foul- touchline ban for his criticism of a
mouthed goal celebration in referee, released a statement on
Saturday’s win at West Ham. Saturday evening in which Rooney
Rooney shouted a stream of exple- apologised for his “heat of the
tives into a television camera after moment reaction”.
completing his hat-trick in a 4-2 come- The controversy overshadowed an
back victory that stretched United’s otherwise triumphant day for the
Premier League lead to seven points. club, who saw title rivals Arsenal and
Football Association director Sir Chelsea slip further behind after both
Trevor Brooking said the governing were unable to keep pace.
body would investigate the incident The Gunners failed to sparkle in a
and decide whether to bring a charge 0-0 draw at home to struggling
against the England star today. Blackburn, while the Blues were held
“Tomorrow there will be a deci- to a 1-1 stalemate at Stoke.
 NOTHING IS AS STRONG
AS TEAM SPIRIT

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 NOTHING IS AS STRONG
AS TEAM SPIRIT

R E TA I L B A N K I N G - C O R P O R AT E & I N V E S T M E N T B A N K I N G
SPECIALISED FINANCIAL SERVICES & INSURANCE
P R I VAT E B A N K I N G , G L O B A L I N V E S T M E N T M A N A G E M E N T & S E RV I C E S

Societe Generale is a credit institution and investment services provider (entitled to perform banking activities and/or to provide investment services other than the operation of Multilateral Trading Facilities) authorised and
regulated by the French Autorité de Contrôle Prudentiel (Prudential Control Authority) and Autorité des Marchés Financiers (Financial Markets Authority). Societe Generale is subject to limited regulation by the UK Financial Services
Authority («FSA») for the conduct of its business in the United Kingdom. Details of the extent of its regulation by the FSA are available from us on request. Societe Generale benefits from the EC passport authorising the provision of
certain banking and investment services within the EEA. This material has been prepared solely for information purposes and does not constitute an offer from Societe Generale to buy or sell any securities or financial instruments,
or to participate in any trading strategies. Not all products and services offered by Societe Generale are available in all jurisdictions. Please contact your local office for any further information. © 2011 Societe Generale Group and
its affiliates. - © GettyImages -