Cityam 2012-01-24

FTSE 100 5,782.56 +54.01 DOW 12,708.82 -11.66 NASDAQ 2,784.17 -2.53 /$ 1.56 unc / 1.20 unc /$ 1.
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www.cityam.com Issue 1,555 Tuesday 24 January 2012 FREE
REDKNAPP
ON TRIAL
SPURS BOSS
FACING BUNGS
CLAIMS P34-35
SHARES SLUMP AFTER
BLACKBERRY RESHUFFLE
EXECS FINALLY ADMIT DEFEAT P17
BUSINESS WITH PERSONALITY
Certified Distribution
28/11/11 till 01/01/12 is 92,879
ASIL Nadir, the Turkish Cypriot
tycoon, stole 150m from his own
company more than 20 years ago, a
court heard yesterday.
Nadir switched 146m and $6.4m
(now 4.1m) from his Polly Peck
International empire to a bank he
owned in Northern Cyprus before
fleeing the country, the Old Bailey
was told.
The businessman, now 70,
siphoned off the money for himself,
his family and his associates between
1987 and 1990, it is alleged.
Prosecutor Philip Shears, QC, told
jurors Nadir had moved the cash into
a fairly complex structure of offshore
companies in Switzerland, the
Bahamas and beyond, at times using
his mothers bank account.
He was a man who wielded very
considerable power over its operations
and management, and that of its sub-
sidiaries, particularly in Northern
Cyprus... He abused that power and
helped himself to tens of millions of
pounds of PPIs money.
As a director of PPI and a signatory
on the account, he was entitled to
instruct PPIs bankers to transfer
funds... However, he would have no
authority to transfer or authorise
funds from PPI for his own personal
benefit or that of his family or associ-
ates.
Nadir, former chairman and CEO of
Polly Peck International, was due to
stand trial in late 1993 but fled to
Northern Cyprus and did not return
until August 2010. Nadir, who lives in
Mayfair, arrived at court with his wife.
He faces 13 specimen charges of
theft, relating to 33.1m and $2.5m,
which he denies. The case continues
and is expected to last between four
and six months.
SHAREHOLDERS will be
given binding votes on execu-
tive directors pay as part of
coalition plans to reform the
corporate landscape.
Business secretary Vince
Cable, left, said he also wants
to make it easier for compa-
nies to claw back money
from directors if poor per-
formance subsequently
emerges. But he dropped
plans for workers represen-
tatives to sit on remunera-
tion committees. Companies
will also escape having to
publish pay ratios, showing
the gap between highest- and
lowest-paid members of staff.
ALLISTER HEATH: P2; P3
Asil Nadir and his wife, Nur, arrive outside the Old Bailey yesterday
Cables plan for clawbacks and
tougher votes on director pay
POLITICS
BY PETER EDWARDS
COURTS
BRUSSELS could make its ultra-strict

rulebook on bankers pay even
harsher, commissioner Michel
Barnier said yesterday during a visit
to the City.
The ideas under consideration
include forcing lenders to set a max-
imum ratio between their most and
least highly pay staff and requiring
bankers fixed base salaries to
account for a minimum amount of
their total pay package, as opposed
to their bonus.
If introduced, the new rules
would be the second major overhaul
of bank pay regulations in less than
two years, threatening to throw
lenders cost planning into disarray.
Europe introduced the strictest
pay regime in the world in January
last year, forcing no more than 20-30
per cent of awards to be given in
cash upfront with the rest in
shares or deferred pay. Banks also
have to include clawback clauses
in contracts with senior executives
so that they can get money back if
actions are later deemed to have
caused certain kinds of losses.
But Barnier suggested that more
intervention could be necessary to
avoid a violent reaction from
increasingly resentful European vot-
ers.
He told Reuters: If banks are inca-
pable of self-discipline with regards
to bonuses, then we must act.
He added: Among the ideas that
we are exploring is a ratio between
fixed salary and bonus Another
idea which could be considered is a
ratio between the lowest level of pay
in a bank and the highest level of
pay.
Either of the measures would lead
to a complete rethink of banks costs
bases.
Investment bankers, in particular,
are often given most of their reward
in a variable annual bonus rather
than their base salary. The system
allows banks to cut some awards
down to the bone when revenues
are suffering as they have this
year.
In his speech at Guildhall yester-
day, Barnier also told a City audi-
ence that Brussels is not trying to
undermine London as a leading
financial centre.
Contrary to what I often read,
there is no plot. No plot to under-
mine the City. No plot to boost Paris
or Frankfurt at the expense of the
City, he claimed, suggesting that
Britain would continue to be at the
heart of Europe.
He added that if Europe had given
in to UK demands for safeguards
for the City at a summit last month,
it would have undermined the sin-
gle market by leading to counter-
demands by other states.
He also warned that Europes
move to examine structural reform
of the banking sector could lead to
the imposition of a rival system to
the Vickers Commission ringfence.
Do not assume that the conclu-
sion of this thinking means repro-
ducing the UK approach to the EU,
he said.
EUROZONE NEWS: P6-7
BRUSSELS IN
NEW ATTACK
ON BANK PAY
BY JULIET SAMUEL
POLITICS
Nadir stole 150m and

fled to Cyprus, court told
News
2 CITYA.M. 24 JANUARY 2012
THE GOVERNMENT has suffered a
further defeat over its welfare reform
proposals after peers backed a move
to exclude child benefits from the
26,000 annual cap on benefits paid
to families.
The House of Lords voted by 252 to
237 last night in favour of the amend-
ment introduced by the Bishop of
Ripon and Leeds, the Rt Rev John
Packer, and backed by Labour.
The vote came after a Labour-led
call to exempt people considered at
risk of homelessness from the cap
was rejected by 250 votes to 222.
Bishop Packer argued that impos-
ing the cap on all households regard-
less of their size, would, in effect,
penalise children.
It cannot be right for the cap to be
the same for a childless couple as for
a couple with children. Child benefit
is the most appropriate way to right
this unfairness, he said.
A spokesperson for the
Department for Work and Pension
said following the debate they were
very disappointed by the decision.
If you take child benefit out of the
cap it will simply become ineffec-
tive, failing the very principles of our
reforms, which is to bring fairness
back into our welfare system while
ensuring that support goes to those
who need it, he said.
It is the fifth defeat for the govern-
ment after peers voted down on other
parts of the governments flagship
welfare reform bill earlier this
month. However the decision is like-
ly to be overturned when the legisla-
tion returns to the Commons.
MORE ON WELFARE CAP: P13
BY KASMIRA JEFFORD
POLITICS
Music industry shows content is king

MOST industries have done well from
the extraordinary change unleashed
by the internet since the web went
mainstream in 1994. Among the few
exceptions have been content business-
es, including the media and music
industries, which have seen their old
business models decimated by the
technological revolution and which
have struggled to build a viable alter-
native. So it is encouraging to note that
after years of decline the music indus-
try could finally be stabilising, with
revenues only falling by 3 per cent last
year to around $16bn, the least bad
performance in years. Collapsing CD
sales are now almost being compensat-
ed for by surging paid-for downloads,
and no longer only thanks to iTunes.
Global digital revenues grew 8 per
cent to $5.2bn, according to the IFPI,
with single downloads up 11 per cent
by volume and albums up 24 per cent.
The top selling single was Bruno
Mars Just The Way You Are, at over
12.5m paid-for downloads; while prices
are low, these are real numbers. The
number of users paying to subscribe to
a music service grew 65 per cent to
13.4m. In the US, digital channels now
account for 52 per cent of revenues;
globally, it is 32 per cent, surpassing
the proportion reached by the film,
newspaper and book industries.
The beleaguered music industry is
not out of the woods yet; piracy
remains a huge problem. But its ability
to stabilise itself is good news for other
creative industries. One way or the
other, clever, lean, entrepreneurial
companies will be able to monetise
good content.
REFORMING CEO PAY
Of course, there was lots of bureaucrat-
ic, time-wasting nonsense in Vince
Cables executive pay speech yesterday
(see page opposite). Many of the pseu-
do-reforms announced wont amount
to much. But shareholders rights will
be reinforced and it will be they, not
bureaucrats, who will be in charge of
corporate pay. This is good news; the
substantive changes announced yester-
day are pro-capitalist and give share-
holders more clarity and power. Boards
work for their owners and that is how
it should be; reasserting and strength-
ening that link is the best way to pre-
vent rewards for failure.
That is why it is a good thing that
this announcement was a damp squib
in the sense of being less controversial
than expected: many of the silly or
unworkable ideas (such as appointing
employees to the board) have been
ditched or diluted in such a way as to
become meaningless. But the good
reforms have remained. It makes sense
to have claw-back clauses in contracts
if it turns out that what seemed to be a
good performance in fact wasnt, as a
result of a hidden scandal, for exam-
ple. These are now already the norm in
finance as part of deferred compensa-
tion schemes. It is great that notice
periods of more than a year will have
to be ratified by shareholders; again,
this will reduce payoffs for failure and
some of the extreme termination pay-
ments that have done so much dam-
age to the Citys reputation.
I would have gone further: for exam-
ple, shareholders could be responsible
for directly appointing members of the
remuneration committee. But
inflammatory rhetoric aside at least
Cable hasnt really made any existing
failings much worse (apart from a few
minor and ultimately irrelevant nods
to form-ticking and to fake diversity)
and has actually proposed some real
improvements. The devil will be in the
detail but on balance these are a
decent set of reforms.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
US STATE and federal officials are
nearing a deal with the nations five
largest mortgage lenders to settle
claims of foreclosure that drove peo-
ple out of their homes.
Democratic state attorneys general
and Obama administration officials
met yesterday in Chicago to discuss
the terms of the settlement.
People familiar with the talks have
said Bank of America, Wells Fargo,
JPMorgan Chase, Citigroup and Ally
Financial would provide between
$19bn ((12.2bn) to $25bn of relief.
A spokesman for Iowa attorney
general Tom Miller, who is leading
the talks on behalf of the states, said
the negotiators had a good informa-
tional meeting.
Two Democratic lawmakers also
joined representatives of several
activist groups to call for a deeper
investigation into mortgage abuses,
after critics said the deal released the
banks from too many claims.
BY HARRY BANKS
BANKING
US mortgage deal closer

Obama administration officials met yesterday to discuss settlement terms.
NEWS | IN BRIEF
Petroplus halts fuel deliveries
Petroplus has been forced by its lenders
to stop delivery lorries from leaving its
refinery in Coryton in Essex, the areas
MEP Richard Howitt said yesterday. The
struggling companys shares were sus-
pended from the Swiss SIX exchange
yesterday as it continues talks with its
creditors. Petroplus has already closed
three refineries in Europe but has been
committed to keeping open Coryton,
which can output 220,000 barrels per
day and employs around 1,000 people.
Labour group sounds jobs alarm
The International Labour Organization
sounded the alarm on the global jobs situ-
ation in its annual report published yes-
terday, as it called for more coordination
of fiscal policies, repair and regulation of
the financial sector and support for the
real economy. What has changed with
respect to last year is that our forecast
has become much more pessimistic, said
Ekkehard Ernst, one of the report's
authors. The ILO said that it no longer
expected a gradual stagnation or coming
down of unemployment numbers, warn-
ing that another 40m jobs need to be cre-
ated each year for the next decade.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
HAYWARD ACCUSED OF LYING TO US
CONGRESS
Lawyers for plaintiffs suing for dam-
ages over the Deepwater Horizon dis-
aster in 2010 have alleged that Tony
Hayward, BPs former chief executive,
lied in a court statement and gave
untruthful testimony to the US
Congress when he testified about the
spill. In a filing at the court in New
Orleans that will hear the trial of BP
and other companies involved in the
accident, the plaintiffs lawyers said
Mr Hayward at best, has a unique
view of the truth.
PUB CLOSURES ACCELERATE IN SUBURBS
The suburbs are bearing the brunt as
the number of pub closures rises
across Britain. An average of 16 pubs a
week closed their doors in the six
months until the end of December
last year, according to figures by the
beer and pub pressure group the
Campaign for Real Ale. This was up
from an average of 14 closures a week
in the first half of 2011.
DIAMONDBACK SETTLES INSIDER TRAD-
ING CASE
Diamondback became the first hedge
fund to reach a settlement with feder-
al prosecutors in connection with
their probe of insider trading on Wall
Street as it agreed to pay $9m (5.8m)
to resolve allegations it illegally prof-
ited from trading in shares of Dell
and Nvidia.
TURKISH AIRLINES EYES LOT PURCHASE
Shares in Turkish Airlines (Turk Hava
Yollari) rose on Monday after the
group said it was looking at buying
Lot, but some analysts said they saw
little logic in a deal to take control of
the lossmaking Polish flag-carrier.
The Turkish flag-carrier said it had
authorised its executive committee to
carry out a pre-examination of the
privatisation process and investment
potential of Lot.
LEGOS SMALL SOLDIERS LEAD TOYS
ADVANCE
Tablet computer toys, Nerf guns and
above all Legos play for the nations
pocket money meant that Britains
toy industry succeeded where so
many others failed last year and grew
by three per cent. A sales slump in
September and October was all but
forgotten amid a busy Christmas,
according to figures compiled by the
toy industry analyst NPD. Helped by
comparisons with last years snow-
affected figures and an extra shop-
ping day as Christmas Eve fell on a
Saturday, sales rose 15 per cent in the
week to Christmas Day.
LOSSES MAY FORCE CLOSURE OF
BRITAINS BIGGEST COALMINE
The future of Britains biggest coal pit
and its 800 miners rests on a review
of the Daw Mill colliery set for the
end of March.
NEWS INTERNATIONAL PLANNING TO
LAUNCH SUNDAY EDITION OF SUN IN
APRIL, CLAIMS MP TOM WATSON
Speculation that News International
may introduce a Sunday edition of the
Sun newspaper was rekindled today
after Tom Watson MP cited a source
saying the company was working
towards an April launch.
SCOTTISH RENEWABLE ENERGY SET TO
GET 7.6BN TO CONNECT TO GRID
Energy regulator Ofgem signalled it
was likely to approve up to 7.6bn of
infrastructure investment to connect
new Scottish wind farms and other
renewable power generators to the UK
grid. Ofgem said yesterday it had fast-
tracked proposals for infrastructure
spending by energy companies
ScottishPower and SSE and expected
to make a final decision in April. The
investment will be paid for through
energy bills.
T-MOBILE, AT&T SEEK APPROVAL OF
SPECTRUM TRANSFER
T-Mobile USA and AT&T filed a
request with the US Federal
Communications Commission for
approval of the transfer of $1bn in
wireless airwaves AT&T promised as a
result of the failure of its $39bn bid to
take over its smaller rival. AT&T said
it would turn over the airwaves, or
spectrum, along with $3bn in cash to
T-Mobile parent Deutsche Telekom
AG after pulling out of the deal as
opposition mounted from the FCC,
Justice Department, state attorneys
general and rival carriers.
INTEL TO BUY SOME QLOGIC
NETWORKING ASSETS
Intel agreed to acquire QLogics
InfiniBand business for $125m in
cash, giving it networking technology
for the growing and competitive
supercomputer market.
WHAT THE OTHER PAPERS SAY THIS MORNING
Lords block
welfare bill
News
VINCE Cables plans to reform board-
room pay received a cautious backing
from the City, although it was thought
unlikely that the business secretarys
proposals would have a meaningful
impact on actual pay levels.
John Cridland, director-general of
the CBI, said executive pay must
always be fair and transparent, and
that high pay must be for outstanding,
not mediocre, performance and
introducing a single remuneration
figure is a positive step forward.
Roger Barker, head of corporate gov-
ernance at the Institute of Directors,
said it was right to drop plans to grant
employees a place on remuneration
committees but said boards should
still consider ways to engage with staff
over pay as part of rebuilding trust in
the UK business system.
Barker also expects that binding
shareholder votes on remuneration
will encourage shareholder activism
and remind institutional investors of
their key governance responsibilities.
EasyJet founder Sir Stelios Haji-
Ioannou told City A.M. the coalition
had taken a step forward.
Great news today from Vince
Cable. I think its a great victory for
individual investors.
Legal & General Investment
Management welcomed the proposals
but Sacha Sadan, director of corporate
governance, said he wanted to see
directors remuneration linked to
clear and explicit targets based on
long term results. He also called on
executives to own a meaningful
amount of shares in the company.
Dominic Rossi, global chief invest-
ment officer for equities at Fidelity
Worldwide Investment, which has
long called for investor pay controls,
said: The introduction of a binding
vote on pay is a particularly welcome
move. As always, the devil will be in
the detail.
Stuart Fraser, policy chairman at the
City of London Corporation, was cau-
tious, however. He said pay is an emo-
tive subject and that British firms
need to pay a competitive rate in order
to retain internationally mobile staff.
Sean OHare, remuneration partner
at PwC, said the reforms would give
Britain the most rigorous regime on
executive pay in the world. He added,
however, that the changes may end
up creating more confusion than clar-
ity and may not cut pay dramatically.
Campaigners for tough regulation
of executive pay were disappointed.
Len McCluskey, general secretary of
trade union Unite, accused Cable of
lacking backbone in his retreat from
plans to let workers reps sit on pay
committees.
BY JAMES WATERSON AND PETER EDWARDS
REMUNERATION
Voting
Binding votes on future pay, including
details of how performance will be
judged. Investors will be given a binding
vote on any directors notice period and
exit payments longer than 12 months.
Coalition will also consider creating a
threshold of 75 per cent shareholder
backing for any pay proposals.
Clawbacks
The government will also extend to all
listed firms a requirement for executive
director contracts to include clawback
mechanisms not just in finance.
Diversity
Vince Cable wants to see more people
appointed to boards from different pro-
fessional backgrounds, such as lawyers,
public servants and academics, and peo-
ple who are new to boards.
Total pay
Companies will publish a single figure
for the total package of each executive.
Boards will also be required to explain
how executive pay compares to divi-
dends, taxes, profits and so on.
Independence
Cable has pledged to look again at the
make-up of pay committees. He cited
figures showing that just six per cent of
remuneration committee members at
FTSE 350 companies are executives at
other firms on the index.
Worker representation
Cable dropped plans to
include staff reps on remu-
neration committees because
of the legal difficulties in giv-
ing positions to people who
are not company directors.
Firms will not be forced to pub-
lish pay ratios showing the gap
between the CEO and the low-
est-paid worker.
Verdict
A binding vote on pay policy is a major
change which would make directors
more accountable and force companies
to show they have taken account of
shareholders views. The measure is not
watertight, however, because investors
will only get an advisory vote on how
the policy is put into practice.
Verdict
Clawbacks are a solid threat but will
face legal challenges if they are too
broad. This will only work in the case of
obvious fraud or scandals.
Verdict
Will the outside experts know their
stuff? FSA rules dictate banks exec
directors must have prior industry expe-
rience, for example. Also, many exec
directors are already new to boards.
Verdict
Total packages are already highlighted
by the media. However more clarity is a
good thing and reduces disputes. But
total exec pay is actually already very
small compared with profits or sales.
Verdict
Yesterday Cable came close to admit-
ting that the amount of cross-over
between companies is actually relatively
modest, especially at the exec director
and remuneration committee level. He
was vague about reform.
Verdict
Practical concerns meant
these proposals were
always unlikely,
although shadow busi-
ness secretary Chuka
Umunna (below)
remains keen on the idea
of workers reps.
(Words by Peter
Edwards)
IN DETAIL | CABLES PAY AND CONDITIONS
Vince Cable
was forced to
announce his
plans a day
early
Picture: PA
Cables boardroom reforms get
cautious support from companies
News
THE FTSE hit its highest level in almost
six months yesterday, leading a rise in
shares across Europe as hopes grew
that negotiations to stop a Greek
default may finally conclude.
Rumours of French and German
proposals to cut bank capital require-
ments, enabling increased lending,
also boosted European markets.
Though the talks suffered a setback
last night, when finance ministers
rebuffed an offer from Greeces debt
holders, the mood in the Eurozone
was optimistic during the day.
Negotiations took a turn for the
worse over the weekend after the
authorities asked investors to accept
new bonds yielding 3.5 per cent,
rather than the previously agreed four
per cent.
Greek finance minister Evangelos
Venizelos had hoped talks would be
complete by yesterday morning, and
although that deadline was missed,
said good progress was being made.
The hair-cut and swap must be
arranged by mid-March if Greece is to
avoid defaulting on debt repayments.
The FTSE 100 hit 5782.56, up 0.94
per cent in one day and 13.6 per cent
in two months. Buoyed by bank capital
reports, the STOXX Europe 600 Euro
Zone Banking Index rose 3.9 per cent.
Yields on risky Italian 10-year bonds
dropped 0.141 per cent yesterday to
6.107 per cent, down a full percentage
point from levels earlier this month.
Greece also published a list of 4000
top tax evaders, in a bid to shame
dodgers into paying up.
EUROZONE: P6-7
WEALTH MANAGEMENT: P26
Shares lifted
by hopes of a
Greece deal
The trial of Allen Stanford, the Texan
banker accused of running a $7bn
(4.5bn) Ponzi scheme, started yester-
day after years of delays.
Prosecutors accuse Stanford of issu-
ing fraudulent certificates of deposit
through his Antigua-based bank and
then bilking investors out of their
money.
Stanford, who faces 14 counts of
fraud, conspiracy and conspiracy to
commit money laundering, has
denied any wrongdoing.
Investors have recovered nothing in
the two and a half years since he was
arrested.
As jury selection began yesterday,
Stanford, 61, stood and peered intent-
ly at a pool of 80 jurors as they filed
into a federal courtroom in Houston.
He wore a rumpled light grey suit, a
blue shirt and no tie in his first court
appearance in street clothes since his
arrest in June 2009.
Prosecutors have said Stanfords
scheme included Swiss bank
accounts, a blood oath meant to keep
Antiguas financial regulator silent,
and an eleventh-hour flight to Libya
by Stanford and his girlfriend.
Stanfords attorneys have said that
he is unfit for trial after a severe jail-
house beating and an addiction to
anti-anxiety medication.
EUROPEAN Union governments yester-
day agreed to an immediate ban on all
new contracts to import, buy or trans-
port Iranian crude oil, a move to put
pressure on Tehrans disputed nuclear
programme by shutting off its main
source of foreign income.
But the governments agreed to
phase in the embargo, giving coun-
tries with existing contracts with Iran
until 1 July to end those deals to pro-
tect Europes economy amid the sover-
eign debt crisis.
At a meeting of foreign ministers in
Brussels, EU governments also agreed
to freeze the assets of Iran's central
bank and to ban all trade in gold and
other precious metals with the bank
and other public bodies. Western pow-
ers hope the far stricter sanctions,
which brings the EU more closely into
line with US policy, will force Iran to
scale back or halt its nuclear work,
which Europe and the US believe is
aimed at developing weapons.
Allen Stanfords
fraud trial kicks
off in Houston
EU bans Iran oil imports
as nuclear row escalates
Warships such as the HMS Argyll have been sent to the Strait of Hormuz Picture: REX
BY TIM WALLACE
MARKETS
COURTS
BY HARRY BANKS
ENERGY
ANALYSIS l The FTSE 100 is at its

highest since July
points
Aug Sep Oct Nov Dec 2012
6,000
5,500
5,750
5,250
5,000
5,782.56
23 Jan
ACCOUNTANCY firm RSM Tenon has
parted ways with its two leading exec-
utives after issuing a third results
warning in two months, causing
shares to crash 29 per cent.
The company is suffering from
reduced sales, pressure on margins
and an enormous debt pile.
RSM Tenon say sales in the six
months to 31 December are likely to
be 10 per cent down on the same peri-
od last year, forcing the company into
the red due to high fixed costs.
The firm said chairman Bob
Morton and CEO Andy Raynor had
both resigned and would step down
with immediate effect. Analysts said
it is likely they were pushed.
The companys future may now
depend on agreeing new terms on its
overdraft, due for renewal in July.
Shore Capital analyst Owen Jones
said the firm faces higher banking
costs: The question is what price
they can renegotiate with Lloyds,
their sole lender. They currently pay
three per cent over LIBOR and wed
expect to see their finance costs rise
to around 810 per cent over LIBOR.
The firm was carrying 66m of
debt at the end of June 2011 and says
that it continues to operate within
agreed financial facilities although
headroom remains limited.
RSM Tenon
shares crash
as CEO exits
BY JAMES WATERSON
ACCOUNTANCY
SUN EUROPEAN Partners has

acquired Bonmarch, the sister chain
of the collapsed fashion retailer
Peacocks, via a pre-pack administra-
tion deal that will save around 2,400
jobs.
The private equity group has
bought 230 of Bonmarchs stores
from administrators KPMG for a sum
understood to be around 10m.
However, 160 stores will be closed,
putting around 1,400 jobs at risk.
Sun European has made a string of
retail acquisitions in recent months,
including the purchase of wom-
enswear brand Jacques Vert and
sports specialist American Golf.
It is also understood to be among
several parties considering a bid for
Peacocks, which was put into admin-
istration last week. The deadline for
first round bids is 31 January.
Sun European Partners acquires
Bonmarch chain from Peacocks
RETAIL
THE hedge fund manager backed by

industry star Chris Hohn (pictured)
expects a recovery in financial stocks
after being hit last year by Eurozone
leaders failure to tackle the debt crisis.
Alex Lasagna, head of business
development and investor relations at
Algebris, said: We think after five
years of significant under-perform-
ance by financials there could be
a return This could be the year
for financials, credit and possibly
equity at the end of the year.
Algebris Global Financials
fund fell 46 per cent last
year. Lasagna highlighted
the 109bn (70bn)
Greek bailout in July
which failed to stabilise
the Eurozone.
Last year we went
long too soon and too hard.
With hindsight, we should have
gone long the end of the process,
he said.
Meanwhile Crispin Odeys
European fund lost 2.8 per
cent last month. David
Stewart, head of Odey Asset
Management, told City A.M.
the fund would continue to
invest in media and US
banks.
BY PETER EDWARDS
HEDGE FUNDS
News
Adrian Martin (l)
is now chairman
and Michael
Findlay (r) becomes
deputy chairman
CEO Andy Raynor
(top l) and chair-
man Bob Morton
(top r) have both
left RSM Tenon
ANALYSIS l RSM Tenon
p
17Jan 18Jan 19Jan 20Jan 23Jan
8.50
8.00
7.50
7.00
6.50
6.00
5.85
23 Jan
Hedgie Algebris struggles to
make the numbers stack up
PRIVATE equity house Bridgepoint is
set to buy Quilter, an arm of Morgan
Stanleys wealth management unit
which the US bank is offloading for a
second time.
The buyout group, whose invest-
ments range from Pret a Manger to a
series of continental financial and
business services groups, is expected
to pay around 180m for the business
after entering into exclusive talks
with Morgan Stanley.
Quilter takes private clients pre-
pared to invest at least 25,000, while
international private banking busi-
nesses such as Morgan Stanleys typi-
cally cater to clients worth millions.
It origins go back to 1777 and it has
7.6bn under management with
offices in Britain, Jersey and Ireland.
Morgan Stanley first sold Quilter to
rival Citi in 2006, before coming to
own it again after buying a majority
stake in Smith Barney from Citi.
Last week it emerged that Morgan
Stanley was paying lower bonuses for
2011, reflecting a weaker perform-
ance, as capital markets reacted to
the European sovereign debt crisis
and a downgrade of the US bond rat-
ing. Clients pulled back sharply on
trading and investment banking
activity, hurting profits across Wall
Street.
Morgan Stanley, like rivals such as
Goldman Sachs, responded to rough
market conditions by cutting staff
and salaries.
All parties declined to comment
on the future of Quilter.
Bridgepoint
on brink of
Quilter deal
Truckers blocked roads to highlight their opposition to fuel tax rises Picture: REUTERS
BY PETER EDWARDS
WEALTH MANAGEMENT
EUROZONE
News
ANALYSIS l Morgan Stanley
$
19.00
18.00
18.50
17.50
17.00
16.50
18.21
23 Jan
Protests spread against
Montis economic plans
ANTI-REFORM protesters blocked
roads across Italy and taxi drivers
went on strike yesterday, with more
groups set to rally against Prime
Minister Mario Montis economic
reforms in coming weeks.
Rising fuel taxes were the immedi-
ate cause of the disruption, but rail-
way workers, pharmacists and
lawyers are expected to go on strike
soon in reaction to efforts to open up
competition in protected sectors.
Meanwhile the Italian finance
ministry announced companies and
individuals concealed 21bn
(17.6bn) last year on which they did
not pay tax.
Monti has been putting pressure
on other Eurozone leaders to
increase the bailout fund, though
German Chancellor Angela Merkel
yesterday rejected the demands.
The Italian PM will meet US
President Barack Obama next month
to discuss efforts to build up the fire-
wall and stop the crisis spreading.
EUROZONE
Grim outlook
as sentiment
remains weak
EUROPES finance leaders met yes-
terday as sentiment for the curren-
cy bloc they represent lay in the
doldrums.
Consumer confidence rose
slightly across the Eurozone,
though remains at low levels, the
French business climate is deterio-
rating and Spains economy is
expected to contract sharply this
year, official data showed yesterday.
The European Commissions con-
sumer confidence index rose from
minus 21.3 in December to minus
20.6 in January.
Confidence remains at its second
lowest level since August 2009.
The French business climate
deteriorated to 91 last month on
the statistics agencys index. A
score of 100 represents the long-
term average.
Meanwhile the Bank of Spain
estimated GDP shrank by 0.3 per
cent in the final quarter of 2011
and forecasts a 1.3 per cent fall this
year.
Despite the grim news, an
8.202bn (6.86bn) French bill auc-
tion went smoothly.
Eurozone news
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EUROZONE finance ministers have
rejected an offer made by private
bondholders to help restructure
Greeces debts, officials said yester-
day, sending negotiators back to the
drawing board and raising the
threat of default.
At a meeting in Brussels to discuss
Athens debt problems, ministers
said they could not accept a coupon
of four per cent on new longer-dated
bonds expected to be issued to pri-
vate bondholders in exchange for
their existing Greek holdings.
Banks and other private institu-
tions represented by the Institute of
International Finance (IIF) want a
four per cent coupon on the new
bonds, which will have a face value
of half that of the bonds they
replace, thereby cutting Athens
debts. Greece says the coupon must
be closer to 3.5 per cent.
The ministers have sent the offer
back for negotiations, one
Eurozone official with knowledge of
the talks said, indicating that the
ministers had effectively come
down on the Greek governments
side.
The ministers want a lower
coupon than presented in the offer
[from the IIF], the official said.
The disagreement increases the
risk that it may prove impossible to
strike a voluntary restructuring deal
between Greeces creditors and the
Greek government.
Greek bond
offer blocked
by ministers
BY HARRY BANKS
EUROZONE
FRENCH banks increased their long-

term borrowing from the European
Central Bank (ECB) by 43.6bn
(36.4bn) over the last month,
according to Bank of France data.
The lenders had borrowed 107bn
in long-term ECB funds as of 17
January, up from 63.4bn at 13
December, the data showed.
The funds would more or less
cover 2012 financing needs for top
banks, according to Deutsche Bank.
The ECB revealed it bought
2.243bn of bonds from states like
Italy and Spain last week, down
from 3.77bn the previous week.
EUROZONE
GERMANY and the other strong

Eurozone countries must take
responsibility for the debts of the
weaker states, International
Monetary Fund (IMF) boss Christine
Lagarde announced yesterday.
The bailout fund needs a substan-
tial boost to sooth panicked bond
markets and protect countries like
Italy, she told an audience in Berlin,
whilst also calling for further fiscal
integration.
The planned fiscal compact should
be implemented alongside some
form of risk sharing which would
stop a fiscal crisis in one country ever
again spreading to others, she said.
Lagarde pointed to Eurobonds
shared debts, which Germany rejects
or a debt redemption fund, which
would see high-debt countries face
even stricter guidance on balancing
budgets, as possible solutions.
Meanwhile commissioner Michel
Barnier told a London audience he
always listens to the City, but there
cannot be special rules for the sector
countering David Camerons calls
in December for safeguards over reg-
ulation of the industry.
Lagarde: Eurobonds will help
stop crisis happening again
BY TIM WALLACE
EUROZONE
French banks take ECB funding

Jan Kees De Jager, the Netherlands
finance minister, (centre), watches as
Italian Prime Minister Mario Monti
(l), is greetd by Jean-Claude Juncker,
Luxembourgs Prime Minister and
president of the Eurogroup.
Picture: REUTERS
Focus on Davos
WHY PARTNERSHIP
IS KEY TO SECURING
FINANCIAL FUTURE
ANDREW MOSS
GROUP CHIEF EXECUTIVE, AVIVA
L
OOKING ahead to Davos, I know it will be a stimu-
lating (and demanding) few days. As the chief exec-
utive of an international insurance company I am
particularly conscious of the concerns and anxieties
our customers have and the difficulties they face in
these challenging times. At Aviva were here to provide
certainty and reassurance to our 44m customers. We
are here for people in times of need. Were here to help
them plan and secure their financial futures.
As national budgets remain strained, there is no ques-
tion that insurers will now need to work more closely
with government than ever before and play a greater
role in providing protection to people. Partnership is key
here neither insurers nor government can solve issues
like the pensions challenge on our own.
In Davos I will be speaking up for the important role
insurance can play in protecting the fabric of society,
whether it is helping to address the issues on long term
care, investing in new infrastructure projects or meet-
ing peoples financial needs in retirement. As the leading
player in the UKs 1.7 trillion insurance industry, ours is
a pivotal role. Wed like to see closer, clearer partner-
ships and allocation of responsibility between private
and public providers develop over the next decade.
And this is just the sort of message that should be
heard and discussed at Davos. It is something that
affects the lives of millions of people. We know the
challenges we face in the current environment, but
with positive dialogue and debate between business
and government, solutions can be found. The next few
days will be long and busy, but no doubt they will also
be very worthwhile.
DIVISIONS over a European Tobin
tax have widened in the run-up to a
gathering of leaders in Davos, where
EU commissioner Michel Barnier
will square up to FSA chairman Lord
Turner in a debate on banking this
week.
Barnier used an address to the
City at Guildhall yesterday to restate
his support for a Tobin tax as feasi-
ble and said its impact on financial
services would be negligible.
That contrasts to a hardening view
in London that the tax would drive
be so costly as to prompt some firms
to relocate.
Some British economists have sug-
gested that the heavy burden of a
Tobin tax imposed outside the UK
could actually benefit Britain.
Capital Economics Vicky
Redwood said that if France or
Germany imposed their own tax
without the rest of Europe: The
potential boost to the UKs financial
services sector as activity relocates to
London could be significant.
Barnier suggested yesterday that if
a tax were introduced across the
whole of Europe, it could affect
some transactions passing through
London.
It would be levied on the parties
to the transaction, at their domicile.
Regardless of whether the transac-
tion is carried out in London, Paris,
Frankfurt, Amsterdam or anywhere
else. No discrimination, he said.
But such a form of the tax could
support the argument for firms to
move their domicile to London.
The issue is set to come up in dis-
cussions this week in Davos as regu-
lators gather to debate systemic risk.
Lord Turner will also raise the issue
of regulating shadow banking and
progress on bank resolution
regimes.
Gulf widens over Tobin tax
BY JULIET SAMUEL
POLITICS
ABNORMALLY high uncertainty is

the main factor driving financial
markets at the moment, according to
former US Treasury secretary Larry
Summers.
He said that the debate at Davos on
how to overcome the problem risks
becoming polarised between econo-
mists and business leaders, who want
to see either government stimulus or
private-sector growth.
The right current approach
involves borrowing from both con-
tending lines of thought, he said.
But he added that the onslaught of
post-crisis regulatory reform risks
being counter-productive.
This is not the right time to add
unnecessarily to their worries. Except
where the rationale is both urgent
and compelling, new regulations that
burden investment should be avoid-
ed.
But Summers, who is served as
Treasury chief and an economic
adviser to President Barack Obama,
added that governments have the
best chance of creating economic
recovery.
SKIING is the best reason to go to the
World Economic Forum in Davos,
according to a plurality of those asked
by CNBC. Thirty per cent of those
responding to an online poll highlight-
ed the winter sport as the main draw,
while 27 per cent said that network-
ing is the best selling point.
Just 14 per cent suggested that
debate and discussion is the top
attraction, while 12 per cent answer-
ing that deal-making is the forums
raison detre. Few think it is restful,
with R&R (rest & recuperation) scoring
six per cent.
BY JULIET SAMUEL
POLITICS
WORLD leaders are increasingly fear-

ful of major social and political unrest
as they gather for a week of debates
and drinks parties in Davos, according
to three reports released yesterday.
A majority of 345 designated risk
experts surveyed by the World
Economic Forum (WEF) expected a
major geopolitical disruption rang-
ing from a terrorist attack to political
unrest or war to materialise over the
next year. That compares to just over a
third of those asked at the start of
2012.
The possibility of a geoeconomic
disruption, such as sovereign default,
is to some degree reflected in the mar-
ket, but a major geopolitical disrup-
tion clearly is not, said WEF
managing director Lee Howell.
Respondents have highlighted the
low levels of trust in political leaders
as a growing problem.
The findings coincide with an annu-
al Davos trust barometer published
by Edelman, the public relations firm,
that has shown its biggest drop in
trust in government on record.
Forty-nine per cent of those asked
said they had some trust in govern-
ment a year ago, but only 38 per cent
said the same this year.
While trust in non-governmental
organisations and business has also
gone down, the number of people say-
ing they place some faith in media has
edged up marginally by one per cent
to 47 per cent now on level pegging
with the status of business. Social
media accounted for most of the
increase.
Among different sectors, banks are
singled out for particular distrust: 40
per cent of those asked said they have
some faith in them, down from 56 per
cent in 2011.
A third survey also suggested yester-
day that the degree of political and
economic uncertainty plaguing lead-
ers is on the rise.
A poll by FTI Consulting said that 31
per cent of business leaders think the
euro will not last the year, which
increases to nearly two thirds when
asked whether at least one country
will have dropped out of the currency
by 2013.
Leaders fear
of political
unrest grows
@Angela_D_Merkel 6.24pm
Nearly finished #Davos speech. Thinking of closing
with a musical number.
#Superangiesmagicfiscalpactwilldothebusiness
@DavosDeville 6.50pm
Can someone explain why the hell
I've just walked into the side of an
igloo?
@DavidEnrich 2.48pm
My favorite moment at #Davos 2011: Lagarde denies
existence of crisis. "The #euro zone has turned a cor-
ner"
@Clare_OC 3.02pm
I hear from his assistant that @RichardBranson is skip-
ping Davos this year. Where art tho, Sir Richard?
DAVOS TWEETS
BY JULIET SAMUEL
DAVOS 2012
Working together is essential Picture: REX
Summers calls for Davos
to restore confidence
Skiing beats
networking
WORLD ECONOMY
Focus on Davos
THE OCCUPY movement, which went
global after protests against Wall
Street last year, is camping in igloos to
bring its argument with the super-
rich one per cent to Davos.
It is a reminder to the leaders of
finance and industry at the World
Economic Forum of the resentment
that is leading to questions about the
future direction of capitalism.
At meetings the rest of society is
excluded from, this powerful one per
cent negotiates and decides about the
fate of the other 99 percent of this
world, says David Roth, Camp Igloo
organiser and head of the Swiss cen-
tre-lefts youth wing.
The economic and financial con-
centration of power in a small, privi-
leged minority leads to a dictatorship
over the rest of us. The motto one per-
son, one vote is no longer valid, but
one dollar, one vote. We want to
change that.
Roths group has set up camp in
sub-zero temperatures and snow to
occupy the WEF in a car park just
outside the security cordon around
the meeting that has become a
byword for globalisation.
He is seeking dialogue with the
WEF but few of the 2,000 visitors are
likely to sees the camp by the train sta-
tion, many preferring to travel by pri-
vate jet or helicopter from Zurich. A
one-way trip costs SwFr5,100 accord-
ing to a WEF handout.
Police arrested two men suspected
of scrawling SMASH WEF on the
walls of the Swiss National Bank in
Zurich last week. They also stopped an
unauthorised anti-WEF demonstra-
tion in the capital Berne on Saturday.
In its Global Risk Report earlier this
month, the WEF showed it is well
aware of the Zeitgeist, warning that a
backlash against rising inequality
risks derailing the advance of globali-
sation and threatens growth world-
wide.
Protesters build igloo village
BY HARRY BANKS
POLITICS
PROTESTERS in
Davos have built
an igloo village,
above, to host the
Occupy Davos
anti-capitalist
campaign. World
leaders will gath-
er to discuss the
growing threat of
political unrest
with German
Chancellor
Angela Merkel
(left, top) kicking
off the forum
today. Klaus
Schwab (left, bot-
tom), founder of
the World
Economic Forum,
warned yesterday
that world lead-
ers are suffering
from burnout
as a result of the
ongoing crisis.
WELCOME TO DAVOS
l The World Economic Forum Annual
Meeting 2011 opens today and runs until
Sunday 30 January.
l Today, delegates will be
arriving at the Swiss moun-
tain town of Davos, the
highest city in Europe,
for the conference.
Registration takes
place throughout the
afternoon.
l The programme
begins at 5.30pm - 7pm
UK time, with a welcome
reception in the Congress
Centre.
l Delegates who are in Davos for the first
time will have a newcomers gathering in
the Congress Centre from 7pm - 8pm UK
time.
l Events can be watched live online:
http://www.livestream.com/worldeco-
nomicforum
l The official blog is at:
http://www.forumblog.org/
l The official Twitter feed is @Davos
#WEF.
l The Open Forum Davos also
runs in parallel to the World
Economic Forum, from 27-
29 January.
l This years Open
Forum theme is
Recognition, Discussion
and Change. Unlike the
exclusive World Economic
Forum, this is open to the
general public. Events will not
be streamed, but videos will be
posted on YouTube after the event.
There is also an official Twitter feed:
@OpenForumDavos #WEF #OFD.
l On Thursday 27 January, the first Open
Forum event is a discussion of the
Eurozone, Euro Grounding?, with panel-
lists including economist Nouriel Roubini
and Jean-Claude Trichet, the president of
the European Central Bank. The event
runs from 11.30am - 1pm UK time.
EVENTS
In
association
with
Picture: REUTERS
A CERTAIN economics reporter had
some unwelcome company for the
mountainous bus ride up to the
mountain retreat yesterday, report-
ing that he had heard some youth-
ful attendees on their way to the
forum suggesting the creation of a
spermbank to sell the seed of
promising young leaders.
Still, as public relations slip-ups
go, Davos youth should count them-
selves lucky that there is no perma-
nent Twitter stream devoted to
their more salubrious comments.
Not so for the bank everyone loves
to hate, Goldman Sachs.
We hear the bank has been mak-
ing efforts to stamp out a particular
annoyance: the Twitter feed known
as GSElevator that purports to
publish missives from Goldmanites
themselves. Davos Diary
has it on good authority
that at least some senior
execs think the tweets
have a scary ring
of authenticity.
A choice offering:
Were all Gods children. Some of
us just have a higher allowance.
Not to mention: Some chick asked
me what I would do with 10m
bucks. I told her Id wonder where
the rest of my money went.
As for pick-up tips, bluffing is key:
Spent last night pouring cham-
pagne, feeding her dessert, &
telling stories of my trip to
Bhutan. Ive never been
to Bhutan.
Though some
seem to have trouble
keeping finance out of the
bedroom: 1: My [girlfriend[
asked me if backwardation is a sexu-
al thing. 2: There's a keeper.
Whoever says bankers arent
charming fellows?
DAVOS DIARY
JULIET SAMUEL
News
TECHNOLOGICAL advancement is
changing the face of the music indus-
try for good despite getting a bad press
recently over piracy, top record label
executives declared yesterday.
Digital music revenues grew
eight per cent in 2011 to $5.2bn
(3.3bn), crossing the $5bn
mark for the first time,
according to the
International Federation of
the Phonographic Industry.
The digital sector account-
ed for almost a third of the
$16.2bn total revenue
from across the recorded
music market, which
was down three per
cent on the previous
year in the slowest rate
of decline since 2004.
The year which saw
Adele release the best-sell-
ing digital album of all time
in the US also witnessed
the spread of digital music
services from 23 to 58 countries.
Edgar Berger, chief executive of
International at Sony Music, said:
There is now a positive outlook on the
music industry we are moving from
a headwind to a tailwind.
The internet is a blessing for the
record industry, and the digital era has
changed the way the music busi-
ness operates.
While over a quarter of
internet users access illegal
sites on a monthly basis,
music industry representa-
tives feel confident that
2012 will see piracy fur-
ther stifled, following in
the footsteps of last
weeks swoop on
Megaupload.com.
Rob Wells, presi-
dent of Universal
Musics global digi-
tal business, said:
My crystal ball is
telling me that 2012
will be quite a signifi-
cant year in the history
of the music industry.
Digital sector
saves day for
music market
BY LAUREN DAVIDSON
TECHNOLOGY
Tips to take away from the Ruspetro flotation

T
HE successful flotation of
Ruspetro, the Russian oil and
gas explorer, is being looked
on by many in the City as an
opportunity to finally get a mori-
bund IPO market off the ground.
Its the first main market listing
of the year and it follows a period
during which only the most coura-
geous or crazy banker would con-
template taking anything but the
most established company, such as
Glencore, to market.
So what lessons can be learnt
from the deal, which continues to
trade just slightly below issue price
but closely enough not to dissuade
too many others from following in
its footsteps?
Advisers, headed by Bank of
America Merrill Lynch, say that
there were broadly three key ele-
ments in the process that helped get
it through to the finishing point.
They can be broadly defined as
timetable, pricing and publicity (or
being sparing with it).
The important thing about the
timetable in this instance is that the
bankers eschewed the conventional
timescale, known as two plus two, in
which they traditionally spend two
weeks in pre-marketing and follow
this by two weeks of a roadshow
with a firm end date.
Here they worked on the deal for
a period of around eight weeks,
although this straddled the two
week Christmas holiday.
The first period ahead of
Christmas involved management
meeting between 15 and 20 of the
key institutions.
When it became clear that the
soft market and the imminence to
the Christmas break made pricing
impossible, the process was effec-
tively put on hold until the new
year.
Then, with the client putting the
pressure on, Merrills Rupert Hume-
Kendall and Mirabauds Peter Krens
took control of institutional distri-
bution.
Whereas Mirabaud Securities
made a valiant effort to sell a deal
that would have valued the group at
$550m new money, Hume-Kendall
led the charge to get investors to
sign up at a more realistic price
between $425-450m. This market
isnt for the weak-hearted, he told
me, explaining how he managed to
get the deal covered in one day.
All this was achieved with very lit-
tle publicity. Says Krens, who
worked on the deal at Mirabaud:
The low key approach is definitely
the best unless you are selling a well-
known retail brand.
Expect some of these lessons to be
learned in future deals.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
NEWS | IN BRIEF
Tube to get wi-fi before Games
London Underground passengers will be
able to use wi-fi at 120 stations in time
for the Olympics, a Transport for London
boss has said. TfL oversaw a successful
trial at Charing Cross last year, but there
were fears of delays after telecoms firm
Huawei pulled out of a deal to provide
the network. But a new provider will be
unveiled in spring, leaving plenty of time
for this to be delivered to customers in
time for the 2012 Games, TfL director of
strategy Gareth Powell said in a state-
ment.
Kodak replaces restructuring boss
Eastman Kodak replaced its chief
restructuring officer yesterday, just a
handful of days after it filed for bank-
ruptcy protection. James Mesterharm,
who works for the consultancy firm
AlixPartners, will replace Dominic
DiNapoli, the FTI Consulting employee
who was chosen just last week. The firm
said there was no "disagreement or dif-
ference of opinion" with the previous
restructuring officer but provided no fur-
ther explanation for the change.
Texas Instruments beats Street
Texas Instruments last night reported
higher-than-expected fourth-quarter rev-
enue as demand for its chips improved
more quickly than it had forecast.
The US company, which makes chips for
everything from consumer electronics to
industrial equipment, reported a profit of
$298m (191m), down by two-thirds on
a year ago. Revenue fell three per cent to
$3.42bn, beating analyst forecasts of
$3.25bn. Texas Instruments had warned
last month that chip demand was weak.
OCADO saw its shares fall yesterday
after the online grocer announced
that Andrew Bracey, its chief finan-
cial officer, has quit to join the
recruiting agency Michael Page as its
finance director.
Bracey, who joined Ocado just 18
months ago ahead of its controversial
flotation in 2010, will step down in
April after completing the groups
year end audit and annual report.
The surprise move has prompted
analysts to ask whether this is further
evidence that Ocado will struggle to
compete in the long-term against
industry rivals like Tesco.
Clive Black, analyst at Shore Capital
said: Whilst only our view, that Mr
Bracey has decided to leave Ocado,
billed as the next big thing by some,
speaks volumes.
Ocado is yet to report an annual
pre-tax profit. Capacity constraints at
its distribution centre in Hatfield
forced the troubled company to issue
a profit warning last month.
However, Bracey defended his
move, saying the decision was unre-
lated to the companys performance.
I am certain that Ocado will
demonstrate what we all believe
that it is a business with great
prospects and an exciting growth tra-
jectory, he said.
The group said it had started a for-
mal search process to find a successor
and also announced that co-founder
Jason Gissing will take up the new
role of commercial director, taking
charge of Ocados retail activities.
Ocado shares
fall as finance
chief resigns
BY KASMIRA JEFFORD
RETAIL
News
Asda plans 500m expansion
ASDA has announced it will create
5,000 new jobs in 2012 by opening 25
new stores and three depots across
the UK.
Britains second largest supermar-
ket chain has earmarked 500m for
the investment that will also expand
and refurbish 43 of its existing stores.
The 25 new shops will add over
600,000 square feet of net selling
space, through superstores, small for-
mat supermarkets and Asda Living
outlets
The new depots, at Rochdale,
Falkirk and South Elmsall in
Yorkshire, will add capacity to the
firms logistics network so it can meet
planned growth targets.
Asda, which has pledged to be 10
per cent cheaper than its rivals amid
a supermarket price war, said half
the 30,000 staff it took on last year
had gone to young people.
The Wal-Mart owned chain, which
currently employs more than
180,000 people and runs 528 stores in
the UK, also pledged that eligible
employees would be given the
chance to take City and Guilds
apprenticeships.
Shore Capital analyst Clive Black
said the news of more jobs is most
certainly welcome news for a broadly
stagnating economy. Prime Minister
David Cameron also welcomed the
expansion.
Asda has not yet updated the mar-
ket on its Christmas trading. Rival
Tesco posted disappointing results
last week, announcing its first profit
warning for 20 years after its price
cuts failed to pay off.
BY RAYMOND DOHERTY
RETAIL
ANALYSIS l Ocado
p
100
90
95
85
80
75
85.60
23 Jan
ANDREW Bracey, who is leaving the
world of online grocery shopping to
join recruiter Michael Page, has
been Ocados chief financial officer
since November 2009.
Prior to Ocado, he was head of
consumer and retail investment
banking at Jefferies International,
with an 18-year career in invest-
ment banking and private equity
behind him.
After studying at the University
of East Anglia and taking an MA in
history of architecture at
Magdalene College, Cambridge,
Bracey began his career at UBS in
1991. At the bank, he ran the
retail team in corporate
finance and advised several
retail companies including
Dairy Farm and Somerfield.
Bracey spent three years
at Credit Suisse as manag-
ing director in the invest-
ment banking division,
before joining Barclays
Capital in 2003. As man-
aging director, principal
investments, he under-
took a number of signifi-
cant investments,
including Alliance Boots.
Bracey, 44, was part of the Ocado
team that proposed its controver-
sial flotation at 180p in July 2010,
and he intends to keep a close eye
on the firms progress.
He bought into the shares heavi-
ly in the weeks after the flotation in
2010, accumulating much of his
holding of 820,000 at 150p. Bracey
said he plans to
keep his share
holding and
added that
Ocado can look
forward to an
exciting growth
t r a j e c t o r y
without him.
Retail guru leaves the
firm he helped to float
BY RAYMOND DOHERTY
RETAIL
ANDREW BRACEY
THOMAS Cooks shares took a batter-
ing yesterday after it emerged that
its summer bookings by British cus-
tomers were sharply lower in early
January.
The news further dents confi-
dence in the embattled holiday oper-
ator after a string of profit warnings
and a funding crunch.
Reports yesterday claimed Thomas
Cooks sales had fallen by 33 per cent
in the two weeks to 13 January, cit-
ing a leisure industry monitor
shared by tour operators to track
bookings.
Shares in the group, which have
fallen by over 90 per cent in the last
year, fell a further five per cent.
Sources close to Thomas Cook con-
firmed that sales had fallen but said
it was down to a planned cut in holi-
days on sale rather than a collapse of
confidence in the brand.
Thomas Cook said it last reported
UK bookings on 14 December, show-
ing it went into January with an
order book for summer 2012 that
was well ahead of the wider market.
Charles Stanley analyst Douglas
McNeill said the latest figures were a
concern, but investors should not
read too much into a two-week book-
ing period.
Thomas Cook
shares down as
bookings drop
LEISURE
NEWS | IN BRIEF
Associated Press chief to leave
Global news network Associated Press
(AP) announced yesterday that Tom
Curley, president and chief executive since
2003, will step down this year. Curley
boosted APs move into digital space by
overseeing the creation of a digital data-
base featuring AP content available in
every format. Curley will continue in his
role until a successor is in place to ensure
a smooth transition.
Digital consumerism on the up
Almost two thirds of consumers are will-
ing to pay to stream films online accord-
ing to the latest media and
entertainment survey from KPMG,
which brings to light a breakthrough for
online TV and movie streaming. While
the report shows that the majority of
respondents prefer traditional media
such as physical books and scheduled
TV, smartphone and tablet ownership
continues to rise.
Revenues rise at bakery group
Bakery group Finsbury Food yesterday
announced its total revenues boomed in
the first half of the financial year, passing
102m for the first time in its history.
Growth occurred across all the company
sectors, with the UK cake division up 10
per cent and free from sales increasing
eight per cent. However, Finsburys oper-
ating margin was lower than the same
period last year due to increases in costs.
OIL and gas producer Apache is set to
buy privately held Cordillera Energy
Partners III for $2.85bn (1.8bn) in cash
and stock, expanding its holdings in
one of the most lucrative emerging oil
and gas fields in the United States.
It is the largest US deal so far in
2012, and the second-largest deal
worldwide.
Cordillera is owned by private equi-
ty firm EnCap Investments and other
investors, who will receive about
$2.25bn in cash and $600m of Apache
common stock for the assets.
The deal will double Apaches
acreage in the energy-rich Anadarko
basin, a shale formation in western
Oklahoma and the Texas panhandle in
which the company has been drilling
for more than 50 years.
Apache, which agreed to buy $7bn
worth of assets from BP in 2010, is par-
ticularly interested in Cordilleras
acreage in the Granite Wash geological
formation within the Anadarko basin.
The site holds tight gas and natural gas
liquids trapped in its sandstone.
Because 80 per cent of [Cordilleras]
revenue comes from liquid hydrocar-
bons production, this transaction pro-
vides compelling economics at current
commodity prices, Apache chief exec-
utive Steven Farris said in a statement.
As technological advances have
made drilling for gas and oil possible
in the Granite Wash and other uncon-
ventional opportunities like shale for-
mations, energy companies have
poured billions of dollars to buy North
American acreage with access to those
resources.
But with natural gas prices plung-
ing, they have focused on assets that
produce more oil and natural gas liq-
uids, which trade at higher prices than
so-called dry natural gas.
Bernstein analyst Bob Brackett said
that the acquired acreage could pro-
vide Apache with drilling opportuni-
ties for years, if not decades.
He estimated in a research note that
Apache was paying around $11,200 an
acre for the deal.
Apache inks
$2.8bn deal
for Cordillera
BY HARRY BANKS
M&A
News
Mortgage lending edges up
MORTGAGE lending rose at the end
of last year compared to 12 months
earlier, yet levels remain relatively
deflated.
Gross mortgage lending in quarter
four of 2011 reached 37.2bn up on
33.6bn in the final quarter of 2010.
Yet total loans are significantly
lower than before the credit crunch.
Gross mortgage lending last year
came to nearly 140bn, compared to
362.7bn in 2007.
Many tenants are either finding it
hard to make that leap to making
their first purchase or simply dont
feel confident enough to move
against a backdrop of increasing
unemployment and bad news contin-
ually coming from the Eurozone,
explained Legal & Generals Ben
Thompson.
However, Thompson suggested that
the market would pick up as some
point in the future. There is a lot of
pent up demand, he said, and soon-
er or later confidence will return and
people will find a way to move.
Remortgaging has held up nicely,
and reflects the competitive deals
offered by lenders in the autumn
which created good incentive to
switch to better rates.
Gross lending was 12 per cent high-
er in December than a year prior. Yet
loans for mortgages in the final three
months of the year were lower than
in the third quarter of 2011.
The Council of Mortgage Lenders
(CML), which compiled the data,
talked down yesterdays figures, say-
ing the rise was from low [compara-
tive] levels.
BY JULIAN HARRIS
HOUSING
THE GOVERNMENTS new programme

to get people back into employment
has been rushed and is based on overly
optimistic expectations, the National
Audit Office (NAO) said this morning.
The quick one-year turnaround of
the new Work Programme has had
benefits, the NAO said, yet warned
that no pilot was conducted, and that
the IT system is lagging behind.
The Department [for Work and
Pensions] needs to ensure that
improvements to the IT system are
delivered on schedule, the NAO
warned. In the meantime, there is an
increased risk of fraud and error going
undetected.
The speedy start of the scheme
which will supersede nearly all of the
current welfare to work pro-
grammes could also cause problems
for businesses.
While the scale of ambition and
desire to get things moving should be
applauded, the CBI commented this
morning, we agree that the pace at
which the programme was rolled out
posed a number of challenges to both
providers and the government.
The DWP claims that 40 per cent of
largest group of job seekers in the
Programme will get jobs, yet the NAO
puts the figure at 26 per cent.
Audit office:
back to work
scheme flawed
EMPLOYMENT
I agree that a lower cap should be implemented but child

benefit should be calculated separately for large families
who cant cope but are actively seeking work.
I think 26,000 per household is too low, especially
for London. Ideally it would be set on a case by case
basis, though that would be very difficult.
PAUL DREWETT | ESTAFET CONSULTANCY
www.RateSetter.com Customer Phoneline: 08442490115
In association with RateSetter: A better way to Save and Borrow, Peer to Peer
NEWS | IN BRIEF
Workers proud of private sector
Private sector employees remain proud
to work at commercial firms and are like-
ly to believe their companies have better
leadership than in the public sector, a
survey reveals today. The results come
despite seven in 10 staff, surveyed by
recruitment agents Hays, saying that
stress levels have worsened compared to
one year ago. Nonetheless, 54 per cent
think they have better leadership than in
the public sector, while only 13 per cent
of public sector workers believe they
have better leadership.
FTSE 350 pension deficits rise
Large companies pensions deficits rose
sharply last year, fresh data showed yes-
terday. FTSE 350 deficits, recorded under
accounting rule IAS19, jumped to 67bn
in 2011, compared to 43bn at the start
of the year. Actuarial firm Hymans
Robertson, which compiled the data, said
the results masked an even more severe
deterioration in companies positions.
Bank to consider more stimulus
The Bank of England is right to weigh up
yet another tranche of asset-purchases
when it meets in February, its arch-dove
committee member Adam Posen said last
night. The committee is right to consid-
er as we will be doing in a few weeks
whether we need to do more QE, he said,
while also predicting that the UK would
return to its pre-crash trend growth.
The concept of having a cap that equates to less
than the average household net income is sound.
Looking for work should be the more attractive
option financially.
MARTIN WALLACE | MONTAGU EVANS
CITY VIEWS: DO YOU SUPPORT THE PROPOSED CAP
ON BENEFITS? Interviews by Phoebe Torrance & Raymond Doherty
NICKLAS LORENTZSON | LORENTZSON CONSULTANTS
Iain Duncan
Smith said the
benefits cap would
not increase child
poverty
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
wont stop me from pushing us to do
more and better.
MATCH OF THE DAY
ALSO ON the Ark global board is
Michael Platt, the founder of the
$30bn hedge fund BlueCrest Capital,
which yesterday hosted a chess tour-
nament in Geneva.
Among the players was Icaps
options and futures trader Ryad
Belabdelouahab, a former profession-
al chess player, who challenged the
seven-times world chess champion
Anatoly Karpov following matches
with the games world number two
Vladimir Kramnik and grand masters
Alexander Cherniaev and Gilles
Miralles.
In the last update from Geneva last
night, Belabdelouahab and Karpov
who drew on their last meeting in
December were still deep in play.
CITY COMEBACK
THEN-CHIEF executive Hector Sants
wanted to keep him, but John
Harriman quit Credit Suisse First
Boston of his own accord eight years
ago for a change of scene: returning
to a life as a professional musician,
after spending his formative years as
head chorister at Westminster
Cathedral Choir and a soloist for the
Royal Opera Group.
And tomorrow night, the former
banking adviser (above right) is making
a comeback to Canary Wharf to top the
bill with his jazz band Heads South at
Boisdale, within earshot of his old
offices at 1 Cabot Square.
Harriman, who leads the Cuban
quintet as its composer and pianist, is
hoping the prospect of mostly origi-
nal music will persuade several of his
former senior associates in the City to
come along. If its good enough for
Rod Stewart and his exclusive
guests, whom Harriman recently
entertained at the O2, then its good
enough for his old Credit Suisse col-
leagues even if one of them has since
moved on to run the FSA
ASSET STRIPPERS
IF YOU see Genesis Asset Managements
new hire Chris Ellyatt holding a gun to
the head of his former boss Martin
Gilbert of Aberdeen Asset Management
on 3 February, dont be too alarmed.
The armed raid on Ellyatts old
employer Aberdeen Asset
Management is a water pistol hold-up
to collect all the fund managers spare
change to support Bowel & Cancer
Research and EveryChild.
For them it is just loose change
gathering dust on their desks; for us
it is a few hours of research, says the
cancer charitys Deborah Gilbert (no
relation to Martin), who is planning
a similar raid on the banks of Canary
Wharf in March. Ellyatt, you will be
pleased to hear, has some firms in
mind.
AURUM FUNDS CHIEF
FLIES OUT TO OVERSEE
ARKS AFRICAN LAUNCH
HEDGE FUND manager Kevin
Gundle, the chief executive of Aurum
Funds, has been away from his desk
since last Thursday.
He was in Zambia, The Capitalist
hears, where as a founding trustee of
Absolute Return for Kids (Ark), the
charity set up by the philanthropist
financiers Ian Wace and Arki Busson,
he has been busy dispensing, not gen-
erating, City profits.
Gundle, who flew back from sub-
Saharan Africa yesterday afternoon,
spent that morning in the town of
Kalikiliki in Lusaka Province, where
he oversaw the first vaccination in
the charitys programme to combat
infant mortality caused by the
Rotavirus, run in partnership with
Zambias Centre for Infectious
Disease Research.
Ark committed $5.7m towards the
three-year partnership after its annu-
al fundraising gala last June, when
the Department for International
Development matched the charitys
$1.6m vaccines pledge, the founda-
tion run by Microsoft founder Bill
Gates and his wife Melinda donated
$3.8m, and GSK committed to supply-
ing 84,000 vaccines.
Ark has since been working on
preparatory health and education
work to lay the foundations of its
programme to vaccinate 750,000 chil-
dren but yesterday, said Gundle in
an email to the global board, was
only the beginning.
We have the opportunity to do so
much more, he wrote to Wace,
Busson and his seven fellow founding
trustees, who include Jennifer Moses,
the ex-Goldman investment banker
and special adviser to Gordon Brown,
and Anthony Williams, head of the
specialist solar infrastructure asset
manager Bluefield Partners. In
Zambia I saw Ark at its best, but that
The Cass MBA
The Cass MBA
Leadership series
www.cassmba.com
Book now
Upgrade to Business Cass
26th January 2012
A family from Lusaka Province
who yesterday visited the Ark
vaccination clinic
Icaps Ryad
Belabdelouahab
(right) plays
Anatoly Karpov

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News
BLACKBERRY maker Research in
Motion (RIM) saw its shares plunge
over seven per cent to C$15.98 in yes-
terdays trading after the mobile
phone brand announced a change in
leadership late on Sunday.
Thorsten Heins took to the throne
yesterday, replacing co-chief executives
Mike Lazaridis and Jim Balsillie, who
have nurtured the company since its
birth in 1984.
Balsillie continues to sit on RIMs
board while Lazaridis was appointed
to vice-chair.
After racking up 20 years at
Siemens, Heins joined RIM as senior
vice president for hardware engineer-
ing in December 2007 before being
promoted to chief operating officer for
product and sales in August.
Investors have been calling on the
tech giant to reassess its management
after a turbulent few years, which have
seen company shares drop to a frac-
tion of the almost C$150 high they
reached in mid-2008.
RIMs quarterly revenues dropped
for the first time in nine years in early
2011, prompting the company to axe
over ten per cent of its work force a
total of 2,000 jobs in July.
The company then suffered embar-
rassment when the BlackBerry service
blacked out for four days in October.
Heins said: RIM has undergone and
is still completing a major transforma-
tion, having gone over the last ten
years from annual revenues of
C$294m to just under C$20bn.
Like all companies of that scale,
you hit a few bumps in the road here
and there, but it is key that we learn
from those mistakes.
The new BlackBerry boss said the
company would focus on its execution
process and be more marketing driv-
en and consumer oriented.
The company is looking for a new
chief marketer and is expected to
release several new products this year.
Shares slump
on shake-up
at BlackBerry
BY LAUREN DAVIDSON
TECHNOLOGY
Mike Lazaridis (left)

and Jim Balsillie
stepped down as RIM
co-chiefs yesterday
Only drastic change can save RIM now
FEW in the telecoms industry will
mourn the departure of Jim Balsillie
and Mike Lazaridis. As co-chairmen
and co-CEOs of BlackBerry maker
RIM, the pair wielded far too much
power over the troubled handset
maker.
It was an open secret that the chief
executives of the big network opera-
tors found it incredibly hard to do
business with them. For years now,
they have been telling the company
that BlackBerrys were not up to
scratch when compared to rival
handsets such as the Apple iPhone
and Samsung Galaxy.
Last year, the firm lurched from
disaster to disaster. Millions of users
were unable to access their emails
for three days, after a blackout
downed the firms servers. The
PlayBook tablet billed as an iPad
killer was the dampest squib imagi-
nable, and RIM was forced to take a
charge of $485m after writing off
almost the entire value of its invento-
ry. Its share price lost three quarters
of its value as its market share
quickly dwindled
Appointing a new management
will not solve the problem in and of
itself. New boss Thorsten Heins, who
is moving up from the chief operat-
ing officers post, yesterday said the
company was not in need of drastic
change. He couldnt be more
wrong.
First, RIM should streamline the
ridiculously large BlackBerry range,
and pursue a relentless focus on win-
ning back the high-margin business
customers that matter most.
BOTTOMLINE
Analysis by David Crow
ANALYSIS l Research In Motion
CAD
18.25
17.50
17.75
18.00
17.25
17.00
16.75
16.50
15.67
23 Jan
TIME LINE | RESEARCH IN MOTION
February 1985 Mike Lazaridis founds a tech
start-up in Ontario, Canada.
1992 Jim Balsillie joins RIM as co-chief
executive, investing $250,000.
1995 Working Ventures Canadian Fund
invests C$5m in developing RIMs two-way
pager.
October 1997 RIM floats on the Toronto
Stock Exchange, raising over $115m.
1999 The BlackBerry 850 launches in
Germany and company shares are listed on
Nasdaq, raising another $250m.
2003 The first BlackBerry smartphone is
released.
October 2007 BlackBerry reaches 10m
users.
June 2010RIM acquires QNX, the operat-
ing system now used in the PlayBook, for
C$200m.
April 2011 RIM launches the PlayBook
tablet, which fails to impress critics.
16 June 2011 RIMs quarterly revenue
declines for the first time in almost a decade.
10-13 October 2011 Due to a global RIM
service outage, millions of BlackBerry users
are stranded without basic smartphone
functions.
29 November 2011 RIM offers to manage
rival devices in recognition of its waning
share of the corporate market.
15 December 2011 Co-chief executives
Lazaridis and Balsillie agree to receive a
salary of $1 each.
New 10
Change at top cant come too soon
THERE will be few tears shed in the
telecoms world if RIMs Mike
t
Compared to handsets like the
Samsung Galaxy or Apple iPhone, the
build quality of BlackBerrys is awful.
h b k
rently an independent director of
RIM, to take over the chairmanship. If
she does, she should find a new chief
executive to replace Lazaridis and
In January, we called on
Lazaridis and Balsillie to
quit as soon as possible
News
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NEWS | IN BRIEF
Pan American buys Minefinders
Pan American Silver said it will buy
Canadian precious metals miner
Minefinders for about C$1.5bn (955m)
to boost production from Mexico and cut
output costs. Vancouver-based
Minefinders owns and operates the
multi-million ounce Dolores gold and sil-
ver mine in northern Mexico. The offer of
C$15.60 per share isa premium of 36 per
cent to Minefinders Friday closing price.
Afren to ramp up 2012 output
Afrens shares fell more than five per
cent yesterday, despite the firm forecast-
ing a rise in average output to 42,000-
46,000 barrels of oil equivalent per day
this year up from 19,200 boepd in
2011. It said yesterday the commission-
ing and ramp up of all 14 production
wells associated with the initial phases of
the Ebok field development had been
successfully completed.
HALLIBURTON yesterday warned
that its response to a deep slump in
US natural gas prices would cause
disruptions that will pinch first-
quarter earnings, sending its shares
falling.
The worlds second-largest oil-
field services company posted a
higher-than-expected fourth-quar-
ter profit and gave a fairly upbeat
outlook for 2012, but investors
remain worried about what wider
US drilling trends will mean for the
US market leader.
Costs are rising and the industry
is shifting away from dry gas
toward oil and natural gas liquids
resources.
Eight of its hydraulic fracturing
or fracking crews would complete
moves to liquids-rich basins this
quarter, Halliburton said.
Chief executive Dave Lesar,
addressing a persistent concern
that has weighed on Halliburton
shares, said the idea that North
American profit margins would col-
lapse this year was ridiculous.
Overall, Halliburtons fourth-
quarter profit rose to $907m
(582m) from $607m a year ago.
Revenue rose 38 per cent to
$7.1bn.
Halliburton says disruptions
could hit earnings this year
BY HARRY BANKS
ENERGY
Fracking plants are being shifted towards liquids-rich basins Picture: Getty
MORE NEWS
ONLINE
@
www.cityam.com
News
CAIRN Energy yesterday announced
a deal that will see Norwegian giant
Statoil share the costs of its Arctic
exploration.
The area is a notoriously difficult
and expensive place to drill, with the
inhospitable climate hiking costs.
Statoil has acquired a 30.6 per cent
stake in one of Cairns exploration
licences off the coast of Greenland.
The announcement was well received
by investors in Edinburgh-based
Cairn, with trading yesterday starting
as one of the FTSE 100s highest
climbers before closing up 0.55 per
cent.
Cairn, founded by Scottish rugby
international Sir Bill Gammell, has
spent a $1.2bn (770m) in the Arctic
over the past two years but has so far
failed to find commercial quantities
of oil. The oil industry hopes to open
up a new multi-billion oil province
off the coast of Greenland, with
Exxon Mobil and Shell watching
Cairns drilling campaign closely.
Statoil has also set its sights on
expanding its operations in Alaska,
Greenland and Russia.
Neither company would reveal the
financial details of the tie-up. Oil con-
sultancy Wood Mackenzie has said
Greenland could have reserves of
20bn barrels of oil.
Cairn joined
by Statoil in
Arctic hunt
BY JOHN DUNNE
ENERGY
NEWS | IN BRIEF
UK Coal goes back into the black
UK Coal returned to profit last year,
and agreed land sales worth 18m, the
company said yesterday. The company
said in a trading update for the year
ending 31 December that it had contin-
ued to make progress on the groups
three year strategic recovery plan,
which was launched in May last year.
In a statement it said: In 2011, UK
Coal was restored to profitability and
the board now anticipates operating
profit for the full year to be in line with
expectations, with full year tonnage of
7.5m tonnes.
Gulf Keystone reports best well
Oil company Gulf Keystone yesterday
said its The Shaikan-4 well, located in
the Kurdistan region of Iraq, achieved
a flow rate of 563 barrels of oil per
day and 3.65m standard cubic feet per
day of gas in the first well test. Two
well tests in the Triassic have been
completed to date, with five more
planned, and the firm said the well
could be its best yet.
Petrobras picks new chief exec
Petrobras plans to name engineer Maria
das Graas Foster as chief executive,
promoting a respected technocrat from
the Brazilian oil giant's ranks to turn
around its lacklustre performance in
recent years. Foster, the firms natural
gas and power director, would be the
first woman to run Petrobras if the
board approves her promotion on 9
February. A native of a poor Rio de
Janeiro suburb, Foster started at the
company as an intern in 1978.
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Weir Group
2,100
2,000
1,900
1,800
1,700
Nov Dec Jan
p
1,884.00
23 Jan
WEIR GROUP
JP Morgan Cazenove has downgraded the engineering group from over-
weight to neutral, and says it expects uncertainty about near-term
development in demand for fracking equipment to weigh on its share price.
The company has been in the top three share price performers over the last
two years. The broker expects continued growth this year, with earnings
per share set to rise by 18 per cent, and maintains a target price of 2,300p.
ANALYSIS l IMI PLC
850
800
900
750
700
Nov Dec Jan
p
855.00
23 Jan
IMI
UBS downgrades the industrial engineer from buy to neutral, after
admitting it cant get excited over growth prospects at the group. The
broker is finding it difficult to remain bullish on the stock after weak third
quarter growth, and says the four per cent organic growth reported will
deteriorate further in 2012. UBS leaves its estimates unchanged, but sees
modest downside risk, and lowers its target price from 950p to 900p.
ANALYSIS l Glencore International
440
420
460
400
380
Nov Dec Jan
p
435.85
23 Jan
GLENCORE
Citi rates the global commodities trader as a buy with a target price of
550p, and says it is likely to be the winner in the mining sector over the next
five years. The brokers sees Glencore as delivering volume growth through its
industrial assets, and says it is likely to be more insulated from rising costs
and currency fluctuations that its peers. The broker also notes that Glencores
marketing business is a margin business that benefits from higher prices.
ANALYST VIEWS: IS CAIRNS STATOIL DEAL A
SHREWD MOVE TO REDUCE RISK? Interviews by John Dunne
SANJEEV BAHL | NUMIS

Statoil brings credibility to the project, but uncertainty remains on how
much cash Cairn is to throw at further high risk/reward exploration.
STUART JOYNER | INVESTEC

This is a good move for Cairn, as it reduces their risk in Greenland and
is a positive tie-up. Statoil is solid and will provide a fresh set of eyes.
KEITH BOWMAN | HARGREAVES LANSDOWN

The risk/reward balance is still seen as favourable, with market consensus
opinion continuing to say buy. Statoil has good knowledge of the area.
Sir Bill Gammell has led Cairn into the FTSE 100
ANALYSIS l Cairn Energy
p
300.00
295.00
297.50
292.50
287.50
290.00
285.00
292.20
23 Jan
40%
SKISET.CO.UK
AND SAVE
UP T0
RENT YOUR SKIS
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Caledonia Investments
Stuart Cox has been hired as an
investment executive to join
Caledonias global equity income and
growth pool. Cox started his career as
a UK credit analyst, and has worked
at Lombard Odier, JP Morgan Asset
Management and Hermes.
Hobbycraft Group
Mike Giffin and Dominic Jordan have
joined the retailer as chief financial offi-
cer and retail operations director
respectively. Giffin joins from
Waterstones, where he was finance
director, and is the former group finan-
cial controller for HMV Group. Jordan
most recently worked at Pets at Home,
where he was head of retail operations.
McKinney Rogers
The business execution firm has
appointed John Stoner as a senior
partner. Previously Stoner worked at
McKinsey & Company, where he was
a leader in the operations and public
sector practices.
Orrick, Herrington & Rogers
The law firm has hired Anthony Riley,
formerly a corporate partner at
Norton Rose, to its London office.
Riley specialises in M&A transactions,
representing clients including Nestl,
BMW, Corus Steel and HVB.
VTB Capital
The Russian investment bank has
hired Makram Abboud as CEO, Middle
East & Africa and co-head of the
international multi-product origina-
tion and distribution group. Abboud
was previously head of emerging mar-
kets at Nomura Holdings, following
roles at UBS and Merrill Lynch.
Towers Watson
David Shapiro has been hired as a
senior equity researcher in the profes-
sional services firms investment busi-
ness. Shapiro joins from Stamford
Associates, where he was deputy
chief investment officer. Prior to that,
he founded Greentrees Partners as a
joint venture with Collins Stewart.
MetLife
The life and pensions group has
appointed Stephanie Baillie as
employee benefits director to lead the
expansion of its UK employee benefits
business. Baillie joins from Friends
Life, where she held the role of head
of group protection.
M&G Investments
Phil Cliff, a former European equity
manager at Threadneedle Investments
and Occam Asset Management, has
joined M&G Investments to manage
the pan-European dividend fund, sub-
ject to regulatory approval.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
U
S stocks ended little changed
yesterday as investors took a
pause from a recent rally,
awaiting earnings from bell-
wethers such as Apple later in the
week.
The S&P 500 is up nearly five per
cent so far this year as an improv-
ing US economy has boosted
investor optimism.
The Dow and S&P 500 both had
their best weekly performances in
a month last week.
According to Thomson Reuters
data, 15 per cent of S&P 500 compa-
nies have reported earnings, and
just 59 per cent posted results
above Wall Street expectations.
That percentage trails the aver-
age of about 70 per cent, though
the rate is expected to improve as
earnings season gathers steam.
Among the 117 S&P 500 compa-
nies expected to report earnings
this weeks is tech company Apple,
due after the closing bell today.
The Dow Jones industrial aver-
age slipped 11.66 points, or 0.09 per
cent, at 12,708.82. The Standard &
Poors 500 Index was up 0.62 point,
or 0.05 per cent, at 1,316.00. The
Nasdaq Composite Index was down
2.53 points, or 0.09 per cent, at
2,784.17.
Texas Instruments rose three per
cent after-hours after it posted bet-
ter-than-expected revenues.
B
RITAINS top share index hit a
six-month closing high yester-
day, fuelled by banks and
commodity stocks, as fears
receded over the potential for a
messy Greek default in Europes
debt crisis.
The UK benchmark index ended
up 54.01 points, or 0.9 per cent, at
5,782.56, its highest close since 29
July.
Banks rose, with investors cau-
tiously optimistic about the out-
come of a meeting of Eurozone
finance ministers in Brussels to dis-
cuss Greek debt restructuring.
The mood brightened when
French finance minister Francois
Baroin said to journalists in Paris
that a deal with private sector
investors about resolving Greeces
debt crisis was taking shape.
Its a reminder that, actually,
the European sovereign debt crisis
isnt insurmountable, said Henk
Potts, market strategist at Barclays
Wealth.
Also aiding banking stocks, said
traders, were newspaper reports
that France and Germany will call
for a relaxation of Basel III global
bank capital rules to prevent lend-
ing to the real economy being
choked off.
But Michel Barnier, European
commissioner in charge of finan-
cial regulation, said yesterday that
he would stick strictly to the imple-
mentation of Basel III.
Signs that a Greek deal may be
around the corner had a positive
knock-on effect on other cyclical
sectors, spearheaded by integrated
oil stocks, as oil prices rose on an EU
ban of Iranian crude imports.
Royal Dutch Shell rose 2.5 per
cent, after ING started coverage on
the oil major with a buy rating.
Traders also cited an improving
overall macroeconomic outlook as
supportive of commodity stocks,
with recent better-than-expected
data out of the United States.
THELONDON
REPORT
THENEW YORK
REPORT
p
11 Nov 24Oct 1 Dec 21 Dec 13Jan
5,800
5,200
5,300
5,400
5,100
5,600
5,700
5,500
ANALYSIS l FTSE
5,782.56
23 Jan
Avoca Capital
Avoca Capital, the European credit investment
manager with 6bn assets under management,
has strengthened its sales and marketing capa-
bilities by appointing Rachel Black as head of
capital raising for the credit hedge fund team,
based in the London office. Black joins from
Concerto Asset Management, where she was
head of marketing and business development.
Black has also worked at Deutsche Bank, where
she led the credit hedge fund sales desk, and at
JP Morgan, where she started her career.
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News
FTSE hits a six-month high as Greek fears recede
US stocks pause after rally
LON GD ONCE FIX AM...........1675.00 29.00
SILVER LDN FIX AM ..................32.66 1.64
MAPLE LEAF 1 OZ ....................34.87 0.14
LON PLATINUM AM................1540.00 33.00
LON PALLADIUM AM...............679.00 11.00
ALUMINIUM CASH .................2183.00 52.00
COPPER CASH ......................8230.003-120.00
LEAD CASH...........................2130.00 -1.00
NICKEL CASH......................20150.00 480.00
TIN CASH.............................21800.00 -175.00
ZINC CASH ............................1995.00 -16.00
BRENT SPOT INDEX ................111.40 0.10
SOYA .....................................1187.00 -10.00
COCOA..................................2259.00 -61.00
COFFEE...................................225.40 -1.25
KRUG.....................................1740.50 -2.00
WHEAT ....................................159.62 1.50
AIR LIQUIDE........................................97.63 -0.43 100.65 80.90
ALLIANZ..............................................85.51 1.56 108.85 56.16
ANHEUS-BUSCH INBEV ....................47.40 -0.50 48.63 33.85
ARCELORMITTAL...............................16.51 0.26 28.55 10.47
AXA......................................................12.05 0.13 16.16 7.88
BANCO SANTANDER...........................5.98 0.07 9.00 4.94
BASF SE..............................................58.95 0.56 70.22 42.19
BAYER.................................................53.25 -0.27 59.44 35.36
BBVA......................................................6.85 0.09 9.17 4.94
BMW ....................................................63.88 0.29 73.85 43.49
BNP PARIBAS.....................................36.05 0.73 59.93 22.72
CARREFOUR ......................................17.05 0.05 31.98 14.66
CRH PLC .............................................16.00 -0.10 17.40 10.28
DAIMLER.............................................41.69 -0.27 57.22 29.02
DANONE..............................................47.03 -0.47 53.16 41.92
DEU.BOERSE OFFRE ........................42.48 0.46 55.75 35.46
DEUTSCHE BANK..............................33.51 1.01 48.70 20.79
DEUTSCHE TELEKOM.........................8.78 -0.04 11.38 7.88
E.ON.....................................................15.88 -0.35 25.54 12.50
ENEL......................................................3.04 -0.02 4.86 2.78
ENI .......................................................17.28 0.11 18.66 11.83
FRANCE TELECOM............................11.45 -0.02 16.65 11.12
GDF SUEZ ...........................................20.36 -0.77 30.05 17.65
GENERALI ASS...................................12.39 0.27 17.05 10.34
IBERDROLA..........................................4.53 -0.03 6.10 4.16
INDITEX ...............................................67.19 0.26 69.40 50.92
ING GROEP CVA...................................7.10 0.12 9.50 4.21
INTESA SANPAOLO.............................1.46 0.08 2.47 0.85
KON.PHILIPS ELECTR.......................15.16 -0.05 24.89 12.01
L'OREAL..............................................80.70 -0.36 91.24 68.83
LVMH..................................................120.55 0.00 132.65 94.16
MUNICH RE.........................................99.34 0.77 126.00 77.80
NOKIA....................................................4.40 0.05 8.49 3.33
REPSOL YPF.......................................22.04 0.39 24.90 17.31
RWE.....................................................26.29 -0.65 55.69 21.15
SAINT-GOBAIN...................................34.58 0.69 47.64 26.07
SANOFI ................................................55.44 -0.08 57.42 42.85
SAP......................................................44.20 0.20 46.15 32.88
SCHNEIDER ELECTRIC.....................48.61 0.41 61.83 35.00
SIEMENS .............................................78.40 0.35 99.39 62.13
SOCIETE GENERALE.........................22.80 1.80 52.70 14.32
TELECOM ITALIA..................................0.82 -0.01 1.16 0.70
TELEFONICA ......................................13.39 0.03 18.75 12.50
TOTAL..................................................40.00 0.15 44.55 29.40
UNIBAIL-RODAMCO SE...................147.35 0.85 162.95 123.30
UNICREDIT............................................3.66 0.35 12.06 2.20
UNILEVER CVA...................................25.29 0.03 27.16 20.90
VINCI ....................................................37.06 0.29 45.48 28.46
VIVENDI ...............................................16.21 0.12 22.07 14.10
VOLKSWAGEN VORZ ......................134.50 0.00 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5782.56 54.01 0.94
FTSE 250 INDEX . . . . . . . 10867.56 41.63 0.38
FTSE UK ALL SHARE . . . . 2980.33 25.54 0.86
FTSE AIMALL SH . . . . . . . . 763.78 9.49 1.26
DOWJONES INDUS 30 . . 12708.82 -11.66 -0.09
S&P 500 . . . . . . . . . . . . . . . 1316.00 0.62 0.05
NASDAQ COMPOSITE . . . 2784.17 -2.53 -0.09
FTSEUROFIRST 300 . . . . . 1048.21 5.15 0.49
NIKKEI 225 . . . . . . . . . . . . . 8765.90 -0.46 -0.01
DAX 30 PERFORMANCE. . 6436.62 32.23 0.50
CAC 40 . . . . . . . . . . . . . . . . 3338.42 16.92 0.51
SHANGHAI SE INDEX . . . . 2319.12 23.04 1.00
HANG SENG. . . . . . . . . . . 20110.37 167.42 0.84
S&P/ASX 20 INDEX . . . . . . 2533.50 0.00 0.00
ASX ALL ORDINARIES . . . 4287.60 0.00 0.00
BOVESPA SAO PAOLO. . 62386.24 74.11 0.12
ISEQ OVERALL INDEX . . . 3009.68 3.99 0.13
STRAITS TIMES . . . . . . . . . 2849.38 38.18 1.36
IGBM. . . . . . . . . . . . . . . . . . . 864.31 5.87 0.68
SWISS MARKET INDEX. . . 6127.67 5.00 0.08
Price Chg %chg
3M........................................................85.61 -0.04 98.19 68.63
ABBOTT LABS ...................................55.72 -0.04 56.84 45.07
ALCOA ................................................10.25 0.08 18.47 8.45
ALTRIA GROUP..................................28.61 -0.09 30.40 23.20
AMAZON.COM..................................186.09 -4.84 246.71 160.59
AMERICAN EXPRESS........................49.44 -0.60 53.80 41.30
AMGEN INC.........................................67.78 -1.79 69.63 47.66
APPLE...............................................427.41 7.11 431.37 310.50
AT&T....................................................30.40 -0.11 31.94 27.20
BANK OF AMERICA.............................7.25 0.18 14.95 4.92
BERKSHIRE HATAW B.......................79.15 -0.76 87.65 65.35
BOEING CO.........................................75.51 -0.01 80.65 56.01
BRISTOL MYERS SQUI ......................32.47 -0.18 35.44 20.05
CATERPILLAR..................................106.37 0.73 116.55 67.54
CHEVRON.........................................107.01 0.12 110.99 86.68
CISCO SYSTEMS................................19.83 -0.09 22.34 13.30
CITIGROUP.........................................29.85 0.21 49.60 21.40
COCA-COLA.......................................68.53 0.44 71.77 61.29
COLGATE PALMOLIVE......................88.37 -0.63 94.89 74.86
CONOCOPHILLIPS.............................70.56 -0.64 81.80 58.65
CVS/CAREMARK................................43.02 0.25 43.17 31.30
DU PONT(EI) DE NMR........................49.35 -0.07 57.00 37.10
EXXON MOBIL....................................87.47 -0.02 88.23 63.47
GENERAL ELECTRIC.........................18.94 -0.21 21.65 14.02
GOOGLE A........................................585.52 -0.47 670.25 473.02
HEWLETT PACKARD.........................28.68 0.55 49.39 19.92
HOME DEPOT.....................................44.88 0.37 45.50 28.13
IBM.....................................................189.98 1.46 194.90 151.71
INTEL CORP .......................................26.71 0.33 26.89 19.16
J.P.MORGAN CHASE.........................37.66 0.30 48.36 27.85
JOHNSON & JOHNSON.....................65.00 -0.27 68.05 57.50
KRAFT FOODS A................................38.47 -0.20 38.84 24.30
MC DONALD'S CORP ......................100.95 -0.79 102.22 72.89
MERCK AND CO. NEW......................38.77 -0.43 39.43 29.47
MICROSOFT........................................29.73 0.02 29.95 23.65
OCCID. PETROLEUM.......................102.06 1.69 117.89 66.36
ORACLE CORP...................................28.39 -0.32 36.50 24.72
PEPSICO.............................................66.10 -0.18 71.89 58.50
PFIZER ................................................21.71 -0.19 22.17 16.63
PHILIP MORRIS INTL .........................74.86 0.34 79.96 56.25
PROCTER AND GAMBLE ..................65.00 -1.23 67.72 56.57
QUALCOMM INC ................................58.15 0.42 59.84 45.98
SCHLUMBERGER ..............................74.16 0.36 95.64 54.79
TRAVELERS CIES..............................60.29 -1.30 64.17 45.97
UNITED TECHNOLOGIE ....................76.86 0.17 91.83 66.87
UNITEDHEALTH GROUP...................52.43 0.16 54.18 39.37
VERIZON COMMS ..............................38.40 -0.57 40.48 32.28
WAL-MART STORES..........................60.91 -0.10 61.25 48.31
WALT DISNEY CO ..............................39.25 -0.06 44.34 28.19
WELLS FARGO & CO.........................30.92 0.38 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.284 0.00
LIBOR Euro - 12 months ................1.772 -0.02
LIBOR USD - overnight...................0.144 0.00
LIBOR USD - 12 months.................1.109 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.140 0.04
European repo rate .........................0.211 0.00
Euro Euribor ....................................0.429 -0.30
The vix index ...................................18.67 0.39
The baItic dry index ........................862.0 0.00
Markit iBoxx...................................240.68 -1.08
Markit iTraxx..................................150.29 0.40
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .322.5 8.8 356.5 248.1
Chemring Group . . . .449.0 0.3 736.5 368.8
Cobham . . . . . . . . . . .193.7 -0.7 236.5 165.9
Meggitt . . . . . . . . . . . .375.8 5.2 397.6 304.9
QinetiQ Group . . . . . .135.0 0.0 137.4 101.5
RoIIs-Royce Group . .753.0 17.5 769.0 557.5
Senior . . . . . . . . . . . . .182.9 -2.4 190.6 132.6
UItra EIectronics . . .1550.0 15.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .214.4 2.7 245.0 157.0
BarcIays . . . . . . . . . . .222.7 0.0 333.6 138.9
HSBC HoIdings . . . . .544.9 2.6 730.9 463.5
LIoyds Banking Gr . . .32.6 -0.1 69.3 21.8
RoyaI Bank of Sco . . .28.1 0.7 49.0 17.3
Standard Chartere .1580.0 15.0 1712.5 1169.5
AG Barr . . . . . . . . . .1274.0 30.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .339.5 -5.8 465.0 289.9
Diageo . . . . . . . . . . .1387.5 -5.5 1428.0 1112.0
SABMiIIer . . . . . . . . .2389.5 60.0 2398.5 1979.0
AZ EIectronic Mat . . .285.4 -0.2 338.1 206.1
Croda Internation . .1939.0 2.0 2081.0 1456.0
EIementis . . . . . . . . . .151.0 0.6 187.4 107.5
Johnson Matthey . .2071.0 5.0 2119.0 1523.0
Victrex . . . . . . . . . . .1270.0 18.0 1590.0 1025.0
YuIe Catto & Co . . . . .198.0 -2.0 253.0 148.0
C/$ 1.3030 0.0095
C/ 0.8367 0.0063
C/ 100.31 0.6797
/C 1.1952 0.0092
/$ 1.5571 0.0007
/ 119.88 0.1253
FTSE 100
5782.56
54.01
FTSE 250
10867.56
41.63
FTSE ALLSHARE
2980.33
25.54
DOW
12708.82
11.66
NASDAQ
2784.17
2.53
S&P 500
1316.00
0.62
RPC Group . . . . . . . .392.0 3.7 394.9 231.5
Smiths Group . . . . . .996.5 7.0 1429.0 869.5
Brown (N.) Group . . .232.7 1.9 304.5 227.0
Carpetright . . . . . . . . .607.0 46.5 792.5 375.0
Debenhams . . . . . . . . .66.0 0.2 74.8 51.2
Dignity . . . . . . . . . . . .816.0 -7.5 854.5 648.5
Dixons RetaiI . . . . . . .14.6 1.1 22.3 9.4
DuneImGroup . . . . . .470.0 12.2 524.5 383.9
HaIfords Group . . . . .316.0 3.0 416.0 268.6
Home RetaiI Group . .100.4 -0.1 235.0 72.5
Inchcape . . . . . . . . . .343.1 -0.9 425.4 268.1
JD Sports Fashion . .709.0 2.0 1030.0 570.0
Kesa EIectricaIs . . . . .68.3 -3.3 151.4 60.2
Kingfisher . . . . . . . . .258.1 -2.2 287.1 217.0
Marks & Spencer G . .332.4 -2.3 402.2 301.8
Next . . . . . . . . . . . . .2614.0 -43.0 2810.0 1868.0
Sports Direct Int . . . .234.5 -0.5 266.2 159.0
WH Smith . . . . . . . . . .533.0 -3.0 558.0 433.8
Smith & Nephew . . . .613.5 5.0 742.0 521.0
Synergy HeaIth . . . . .872.0 -2.0 981.0 808.0
Barratt DeveIopme . .110.4 -1.2 119.0 67.5
BeIIway . . . . . . . . . . . .750.0 3.0 776.5 540.5
BerkeIey Group Ho .1273.0 -7.0 1360.0 884.5
BaIfour Beatty . . . . . .285.9 -1.5 357.3 214.6
CRH . . . . . . . . . . . . .1330.0 -2.0 1700.0 1053.0
GaIIiford Try . . . . . . . .491.5 15.0 530.0 307.5
Kier Group . . . . . . . .1374.0 10.0 1458.0 1097.0
Drax Group . . . . . . . .510.0 -22.0 581.5 371.9
SSE . . . . . . . . . . . . . .1236.0 -15.0 1423.0 1159.0
Domino Printing S . .592.0 12.0 705.0 434.3
HaIma . . . . . . . . . . . . .355.1 -0.3 429.6 306.3
Laird . . . . . . . . . . . . . .165.5 2.0 207.0 127.9
Morgan CrucibIe C . .306.1 2.3 357.1 224.0
Oxford Instrument . .920.0 -2.0 1010.0 600.5
Renishaw . . . . . . . . .1210.0 118.0 1886.0 800.0
Spectris . . . . . . . . . .1524.0 2.0 1679.0 1039.0
Aberforth SmaIIer . . .553.5 4.5 714.0 494.0
AIIiance Trust . . . . . .360.2 1.7 392.7 310.2
Bankers Inv Trust . . .411.0 -2.8 428.0 346.5
BH GIobaI Ltd. GB .1186.0 6.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 0.2 12.2 10.4
BH Macro Ltd. EUR . . .19.9 -0.1 20.2 16.3
BH Macro Ltd. GBP 2060.0 8.0 2084.0 1661.0
BH Macro Ltd. USD . . .20.0 0.0 20.2 16.2
BIackRock WorId M .697.0 1.0 815.5 574.5
BIueCrest AIIBIue . . .166.0 -0.3 176.2 162.4
British Assets Tr . . . .122.9 0.3 139.5 109.0
British Empire Se . . .439.5 2.2 533.0 404.0
CaIedonia Investm .1469.0 6.0 1872.0 1337.0
City of London In . . .292.6 4.5 306.9 257.0
Dexion AbsoIute L . .139.5 0.1 151.0 130.0
Edinburgh Dragon . .236.9 0.9 252.0 201.4
Edinburgh Inv Tru . . .480.9 -1.9 492.2 414.9
EIectra Private E . . .1454.0 -4.0 1755.0 1287.0
F&C Inv Trust . . . . . .300.5 0.4 327.9 261.5
FideIity China Sp . . . . .81.6 2.2 114.3 70.0
FideIity European . .1065.0 7.0 1287.0 912.0
HeraId Inv Trust . . . . .481.4 -2.4 545.5 419.0
HICL Infrastructu . . . .117.7 0.2 121.3 112.7
Impax Environment .100.6 0.4 125.9 88.5
John Laing Infras . . .109.6 0.2 109.9 103.4
JPMorgan American .924.0 11.0 927.0 721.5
JPMorgan Asian In . .199.5 1.0 244.0 170.1
JPMorgan Emerging .554.5 1.0 610.5 480.1
JPMorgan European .701.5 1.5 983.5 624.0
JPMorgan Indian I . . .364.0 0.0 459.0 313.1
JPMorgan Russian .524.5 5.5 741.0 415.1
Law Debenture Cor . .350.9 0.9 385.0 321.0
MercantiIe Inv Tr . . . .942.5 4.5 1137.0 823.0
Merchants Trust . . . .381.5 6.4 431.8 341.5
Monks Inv Trust . . . .320.4 3.9 367.9 298.1
Murray Income Tru . .646.5 12.0 673.0 568.0
Murray Internatio . . .958.0 5.0 991.5 818.5
PerpetuaI Income . . .263.3 0.9 276.0 236.5
PersonaI Assets T .33980.0 20.0 34100.030210.0
PoIar Cap TechnoI . .338.7 0.2 391.2 299.5
RIT CapitaI Partn . . .1236.0 -5.0 1360.0 1173.0
Scottish Inv Trus . . . .478.5 -0.8 524.0 417.0
Scottish Mortgage . .649.5 -0.5 781.0 565.0
SVG CapitaI . . . . . . . .221.5 -1.5 279.8 165.1
TempIe Bar Inv Tr . . .901.5 9.5 952.0 791.0
TempIeton Emergin .594.0 0.0 684.5 497.0
TR Property Inv T . . .154.6 2.5 206.1 136.2
TR Property Inv T . . . .64.8 0.3 94.0 59.8
Witan Inv Trust . . . . .470.0 2.0 533.0 401.5
3i Group . . . . . . . . . . .187.2 0.8 319.7 166.9
3i Infrastructure . . . . .119.9 -0.3 124.0 113.1
Aberdeen Asset Ma .240.8 7.0 244.9 167.8
Ashmore Group . . . .363.6 4.5 420.0 301.5
Brewin DoIphin Ho . .147.6 1.6 185.4 113.7
CameIIia . . . . . . . . . .9413.0-112.010950.0 8800.0
CharIes TayIor Co . . .127.5 -13.4 165.0 115.6
City of London Gr . . . .65.5 1.0 93.6 61.3
City of London In . . .363.5 15.6 450.0 304.3
CIose Brothers Gr . . .666.5 -3.5 875.0 590.0
CoIIins Stewart H . . . .94.0 0.0 94.5 48.5
F&C Asset Managem .65.3 -0.2 91.5 56.1
Hargreaves Lansdo .446.3 2.8 646.5 402.5
HeIphire Group . . . . . . .2.0 0.1 17.4 1.4
Henderson Group . . .116.0 -0.2 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .339.5 3.8 559.0 311.6
IG Group HoIdings . .484.8 3.9 502.5 393.6
Intermediate Capi . . .278.7 0.1 354.7 197.9
InternationaI Per . . . .192.5 -1.5 388.8 148.5
InternationaI Pub . . . .118.8 -0.1 121.5 108.6
Investec . . . . . . . . . . .385.3 5.3 522.0 318.4
IP Group . . . . . . . . . . . .80.0 2.3 82.8 32.7
Jupiter Fund Mana . .220.9 -0.9 337.3 184.9
Liontrust Asset M . . . .76.5 -0.1 87.5 57.9
LMS CapitaI . . . . . . . . .57.3 0.3 64.8 51.0
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .899.5 19.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .12.0 0.8 19.8 8.9
Man Group . . . . . . . . .119.1 -2.1 311.0 104.5
Paragon Group Of . .181.5 2.1 206.1 134.6
Provident Financi . . .980.0 -19.0 1124.0 915.0
Rathbone Brothers .1113.0 -9.0 1257.0 977.0
Record . . . . . . . . . . . . .12.5 0.3 35.8 11.0
RSM Tenon Group . . . .5.9 -2.4 64.8 5.6
Schroders . . . . . . . .1487.0 26.0 1906.0 1183.0
Schroders (Non-Vo .1219.0 17.0 1554.0 970.0
TuIIett Prebon . . . . . .308.9 6.5 428.6 262.3
WaIker Crips Grou . . .45.0 0.0 51.5 43.5
BT Group . . . . . . . . . .206.2 0.7 208.0 161.0
CabIe & WireIess . . . .41.8 1.2 51.2 31.3
CabIe & WireIess . . . .23.9 6.0 76.9 14.2
COLT Group SA . . . . .92.9 -0.2 156.2 84.1
KCOM Group . . . . . . . .68.3 0.5 84.0 57.5
TaIkTaIk TeIecom . . .123.9 0.0 161.5 119.8
TeIecomPIus . . . . . . .677.5 -7.5 802.0 440.0
Booker Group . . . . . . .74.1 0.1 80.0 54.5
Greggs . . . . . . . . . . . .511.5 0.5 550.5 445.0
Morrison (Wm) Sup .296.8 3.0 328.0 264.0
Ocado Group . . . . . . . .85.6 -2.1 285.0 52.9
Sainsbury (J) . . . . . . .290.5 -0.1 391.2 263.5
Tesco . . . . . . . . . . . . .335.0 6.0 420.1 312.4
Associated Britis . . .1160.0 6.0 1166.0 940.0
Cranswick . . . . . . . . .742.5 -5.5 862.0 588.5
Dairy Crest Group . . .321.5 -0.3 409.7 315.0
Devro . . . . . . . . . . . . .265.0 0.5 296.9 223.5
Tate & LyIe . . . . . . . . .665.5 -9.5 720.5 520.0
UniIever . . . . . . . . . .2060.0 13.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .505.5 1.0 664.0 413.5
Centrica . . . . . . . . . . .282.4 -0.9 345.8 278.8
InternationaI Pow . . .320.3 1.2 436.6 279.4
NationaI Grid . . . . . . .614.0 -4.5 649.5 542.0
Pennon Group . . . . . .683.0 -10.0 737.5 584.5
Severn Trent . . . . . .1517.0 -15.0 1600.0 1368.0
United UtiIities . . . . .594.0 -5.5 637.0 543.5
Cookson Group . . . . .572.0 1.5 724.5 395.8
DS Smith . . . . . . . . . .230.8 -2.9 266.2 164.4
Rexam . . . . . . . . . . . .379.5 1.0 400.0 299.8
Price Chg High Low
Bovis Homes Group .462.2 -4.3 499.6 326.5
Persimmon . . . . . . . .524.5 3.5 525.0 374.0
Reckitt Benckiser . .3364.0 -46.0 3578.0 3015.0
Redrow . . . . . . . . . . . .124.0 3.2 136.2 103.5
TayIor Wimpey . . . . . . .42.6 0.6 43.8 28.7
Bodycote . . . . . . . . . .305.0 0.6 397.7 225.6
Fenner . . . . . . . . . . . .446.0 2.0 462.0 280.0
IMI . . . . . . . . . . . . . . . .855.0 -22.5 1119.0 636.5
MeIrose . . . . . . . . . . .370.0 0.4 373.8 268.0
Northgate . . . . . . . . . .215.0 -2.0 346.7 190.9
Rotork . . . . . . . . . . .1883.0 -25.0 1979.0 1501.0
Spirax-Sarco Engi . .1950.0 -12.0 2063.0 1649.0
Weir Group . . . . . . .1884.0 -70.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .438.0 6.4 438.0 315.0
Ferrexpo . . . . . . . . . . .338.2 7.2 499.0 238.7
TaIvivaara Mining . . .359.1 2.1 622.0 195.2
BBAAviation . . . . . . .191.7 -0.3 240.8 156.0
Stobart Group Ltd . . .121.5 0.9 163.6 112.0
AdmiraI Group . . . . . .903.5 15.0 1754.0 787.0
AmIin . . . . . . . . . . . . .355.2 4.7 427.0 270.6
BeazIey . . . . . . . . . . . .140.7 1.8 141.9 109.6
Informa . . . . . . . . . . . .390.8 2.0 461.1 313.9
ITE Group . . . . . . . . . .219.0 2.1 258.2 157.7
ITV . . . . . . . . . . . . . . . . .76.4 0.9 93.5 51.7
Johnston Press . . . . . . .6.1 0.2 12.8 4.1
MecomGroup . . . . . .224.8 1.0 310.0 134.5
Moneysupermarket. .116.9 1.1 120.4 84.8
Pearson . . . . . . . . . .1236.0 3.0 1255.0 1013.0
PerformGroup . . . . .247.5 -2.5 259.6 150.0
Reed EIsevier . . . . . .537.5 6.5 590.5 461.3
Rightmove . . . . . . . .1295.0 -3.0 1408.0 785.0
STV Group . . . . . . . . . .98.0 -4.0 168.0 76.3
Tarsus Group . . . . . .138.0 -1.0 165.0 119.5
Trinity Mirror . . . . . . . .48.0 1.5 89.5 37.5
UBM . . . . . . . . . . . . . .550.0 7.5 725.0 416.0
UTV Media . . . . . . . . .109.9 1.1 150.0 92.5
WiImington Group . . .81.0 -3.0 183.0 80.0
WPP . . . . . . . . . . . . . .757.5 12.5 846.5 578.0
YeII Group . . . . . . . . . . .5.7 0.4 12.0 3.4
African Barrick G . . .470.1 0.6 616.5 393.5
AIIied GoId Minin . . .158.6 -0.4 281.3 34.4
AngIo American . . .2685.5 25.5 3437.0 2138.5
AngIo Pacific Gro . . .288.2 5.8 369.3 237.9
Antofagasta . . . . . . .1359.0 21.0 1524.0 900.5
Aquarius PIatinum . .187.0 5.0 419.0 149.0
BHP BiIIiton . . . . . . .2159.0 33.5 2631.5 1667.0
CatIin Group Ltd. . . .413.9 2.6 421.4 334.0
Hiscox Ltd. . . . . . . . . .393.4 3.3 424.7 340.5
Jardine LIoyd Tho . . .699.0 3.5 764.5 576.0
Lancashire HoIdin . . .708.0 7.5 774.5 532.5
RSA Insurance Gro . .108.9 0.7 143.5 99.6
Aviva . . . . . . . . . . . . . .357.4 6.5 477.9 275.3
LegaI & GeneraI G . . .117.6 0.7 123.8 89.8
OId MutuaI . . . . . . . . .148.7 1.6 149.4 98.1
Phoenix Group HoI . .564.0 6.0 688.0 451.1
PrudentiaI . . . . . . . . .716.5 22.5 777.0 509.0
ResoIution Ltd. . . . . .270.4 -0.4 316.1 229.5
St James's PIace . . . .354.0 3.8 376.0 293.0
Standard Life . . . . . . .219.3 5.6 244.7 172.0
4Imprint Group . . . . .263.5 -0.5 295.0 200.0
Aegis Group . . . . . . .151.7 -0.3 158.5 115.7
BIoomsbury PubIis . .103.0 -2.3 138.0 91.3
British Sky Broad . . .680.0 8.5 850.0 618.5
Centaur Media . . . . . . .35.5 0.9 73.0 32.5
Chime Communicati .193.0 7.5 298.5 163.0
Creston . . . . . . . . . . . .66.9 0.0 121.0 65.5
DaiIy MaiI and Ge . . .442.0 6.9 594.5 343.4
Euromoney Institu . .682.0 -7.5 736.0 522.5
Future . . . . . . . . . . . . . .10.5 0.5 30.0 8.3
Haynes PubIishing . .225.0 5.0 257.0 210.0
Huntsworth . . . . . . . . .33.5 0.5 82.0 32.3
Bumi . . . . . . . . . . . . . .878.5 0.0 880.0 867.0
Centamin (DI) . . . . . . . .93.4 1.4 154.2 78.5
Eurasian NaturaI . . .733.0 -5.5 1076.0 522.0
FresniIIo . . . . . . . . . .1784.0 59.0 2150.0 1296.0
GemDiamonds Ltd. .206.3 5.3 306.0 179.8
GIencore Internat . . .435.9 12.8 531.1 348.0
HochschiId Mining . .497.7 -2.3 680.0 365.9
Kazakhmys . . . . . . .1133.0 10.0 1631.0 730.0
Kenmare Resources . .48.1 0.1 59.9 31.0
Lonmin . . . . . . . . . . .1048.0 16.0 1880.0 941.0
New WorId Resourc .470.0 -5.0 1060.0 409.4
PetropavIovsk . . . . . .697.0 7.5 1090.0 543.5
PoIymetaI Interna . .1098.0 2.0 1154.0 877.0
RandgoId Resource 7115.0 60.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3736.0 51.5 4712.0 2712.5
Vedanta Resources .1178.0 32.0 2518.0 928.0
Xstrata . . . . . . . . . . .1089.5 11.5 1550.0 764.0
Inmarsat . . . . . . . . . . .411.5 7.9 719.5 389.3
Vodafone Group . . . .178.9 1.8 182.8 155.1
Genesis Emerging . .489.6 0.3 548.5 424.0
Afren . . . . . . . . . . . . . .117.9 -6.7 171.2 73.6
BG Group . . . . . . . . .1449.0 -8.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .476.7 9.3 497.5 363.2
Cairn Energy . . . . . . .292.2 1.6 469.7 257.8
EnQuest . . . . . . . . . . .107.9 2.9 158.5 85.7
Essar Energy . . . . . .135.6 13.1 543.0 120.0
ExiIIon Energy . . . . . .262.0 5.3 469.7 184.2
Heritage OiI . . . . . . . .198.9 11.7 439.6 160.0
Ophir Energy . . . . . . .298.5 3.9 318.8 184.5
Premier OiI . . . . . . . . .437.4 7.3 535.0 310.0
RoyaI Dutch SheII . .2310.0 56.5 2402.0 1883.5
RoyaI Dutch SheII . .2399.0 69.5 2489.0 1890.5
SaIamander Energy .243.2 -5.1 317.6 182.3
Soco Internationa . . .305.1 10.3 400.0 278.0
TuIIow OiI . . . . . . . . .1382.0 21.0 1493.0 945.5
Amec . . . . . . . . . . . .1004.0 14.0 1251.0 740.5
Hunting . . . . . . . . . . .843.0 20.5 875.5 530.0
Kentz Corporation . .438.4 -1.6 508.0 347.0
LampreII . . . . . . . . . . .299.5 6.9 395.2 220.7
Petrofac Ltd. . . . . . .1454.0 14.0 1612.0 1108.0
Wood Group (John) .658.0 -0.5 715.8 469.9
Burberry Group . . . .1341.0 -14.0 1600.0 1030.0
PZ Cussons . . . . . . . .311.0 -5.0 387.9 308.7
Supergroup . . . . . . . .643.0 -1.0 1820.0 435.2
AstraZeneca . . . . . .3069.5 32.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .319.2 1.6 332.8 210.1
Genus . . . . . . . . . . . .1032.0 -18.0 1111.0 853.5
GIaxoSmithKIine . . .1442.0 3.5 1497.0 1127.5
Hikma Pharmaceuti .732.5 1.5 889.5 555.5
Shire PIc . . . . . . . . . .2120.0 -1.0 2243.0 1634.0
CapitaI & Countie . . .189.1 -0.3 203.7 142.8
Daejan HoIdings . . .2848.0 48.0 2954.0 2282.0
F&C CommerciaI Pr .103.9 0.4 108.0 92.6
Grainger . . . . . . . . . . .104.7 0.8 133.2 77.3
London & Stamford .108.0 0.0 140.0 103.9
SaviIIs . . . . . . . . . . . . .320.5 -2.4 427.1 256.2
UK CommerciaI Pro . .74.9 0.1 85.5 65.1
Unite Group . . . . . . . .175.5 -2.1 224.1 152.9
Big YeIIow Group . . .271.0 -5.8 344.4 218.0
British Land Co . . . . .496.6 0.7 629.5 444.0
CapitaI Shopping . . .332.9 2.8 408.6 288.7
Derwent London . . .1704.0 5.0 1880.0 1400.0
Great PortIand Es . . .360.0 0.6 445.0 312.9
Hammerson . . . . . . . .389.0 -1.4 490.9 345.2
Hansteen HoIdings . . .76.2 0.0 89.5 68.0
Land Securities G . . .691.5 0.5 885.0 612.0
SEGRO . . . . . . . . . . . .219.8 0.4 331.3 195.0
Shaftesbury . . . . . . . .516.0 9.0 539.0 436.8
Aveva Group . . . . . .1608.0 19.0 1799.0 1298.0
Computacenter . . . . .395.1 15.8 490.0 324.7
Fidessa Group . . . . .1680.0 2.0 2109.0 1444.0
Invensys . . . . . . . . . . .200.8 0.2 357.8 180.9
Logica . . . . . . . . . . . . .81.7 2.1 147.2 59.0
Micro Focus Inter . . .447.0 -8.0 455.0 242.9
Misys . . . . . . . . . . . . .310.0 0.0 420.2 214.9
Sage Group . . . . . . . .310.1 5.3 311.1 231.7
SDL . . . . . . . . . . . . . . .699.0 7.0 711.5 586.0
TeIecity Group . . . . . .655.5 0.5 663.5 433.0
Aggreko . . . . . . . . . .2083.0 -6.0 2131.0 1394.5
Ashtead Group . . . . .230.0 4.3 233.5 99.4
Atkins (WS) . . . . . . . .680.0 -3.5 820.0 490.2
Babcock Internati . . .745.0 -8.0 758.0 542.0
Berendsen . . . . . . . . .454.0 4.0 568.0 402.7
BunzI . . . . . . . . . . . . .863.5 -2.0 906.5 676.5
Cape . . . . . . . . . . . . . .390.0 4.0 591.5 295.0
Capita . . . . . . . . . . . . .650.5 1.5 786.5 611.5
CariIIion . . . . . . . . . . .325.4 -2.6 403.2 281.0
De La Rue . . . . . . . . .962.0 8.0 965.5 667.0
DipIoma . . . . . . . . . . .390.2 -4.8 414.3 263.5
EIectrocomponents .218.9 2.9 294.9 182.2
Experian . . . . . . . . . . .886.5 -4.0 902.5 665.0
FiItrona PLC . . . . . . . .388.8 -2.8 404.5 273.1
G4S . . . . . . . . . . . . . . .271.9 0.5 291.0 219.9
Hays . . . . . . . . . . . . . . .72.5 0.4 130.0 58.9
Homeserve . . . . . . . .308.1 -1.9 532.0 218.5
Howden Joinery Gr . .109.6 0.8 127.5 93.1
Interserve . . . . . . . . . .310.2 0.2 341.3 239.8
Intertek Group . . . . .2140.0 5.0 2152.0 1715.0
MichaeI Page Inte . . .401.0 -0.9 567.0 323.0
Mitie Group . . . . . . . .265.0 -0.5 271.0 195.9
PayPoint . . . . . . . . . . .583.5 7.0 587.0 327.3
Premier FarneII . . . . .207.0 1.1 308.8 144.5
Regus . . . . . . . . . . . . . .90.3 1.1 119.0 64.0
RentokiI InitiaI . . . . . . .75.3 0.3 104.7 58.2
RPS Group . . . . . . . . .206.5 0.7 253.0 156.6
Serco Group . . . . . . .516.5 2.5 618.5 458.0
Shanks Group . . . . . . .99.7 0.2 130.9 90.8
SIG . . . . . . . . . . . . . . .105.1 0.0 153.5 77.0
Travis Perkins . . . . . .880.0 -3.5 1090.0 715.0
WoIseIey . . . . . . . . .2240.0 2.0 2261.0 1404.0
ARM HoIdings . . . . . .590.5 15.0 651.0 464.0
CSR . . . . . . . . . . . . . .229.7 3.7 447.0 154.1
Imagination Techn . .563.0 -8.0 575.5 296.9
Spirent Communica .122.3 -3.1 160.0 105.8
British American . .2948.5 26.5 3079.0 2282.5
ImperiaI Tobacco . .2240.0 -13.0 2444.0 1784.0
Betfair Group . . . . . . .857.0 12.0 1030.0 567.0
Bwin.party Digita . . .158.5 -0.8 204.0 100.6
CarnivaI . . . . . . . . . .1979.0 -10.0 3000.0 1742.0
Compass Group . . . .615.5 2.0 619.5 512.5
Domino's Pizza UK . .476.8 16.8 549.0 377.0
easyJet . . . . . . . . . . . .414.4 -8.1 425.7 301.0
FirstGroup . . . . . . . . .306.8 3.2 391.2 301.7
Go-Ahead Group . . .1287.0 -33.0 1598.0 1190.0
Greene King . . . . . . .513.5 1.5 520.5 410.0
InterContinentaI . . .1338.0 21.0 1435.0 955.0
InternationaI Con . . .171.1 3.5 285.0 132.0
JD Wetherspoon . . . .417.5 2.7 468.3 380.5
Ladbrokes . . . . . . . . .140.2 0.3 155.3 114.0
Marston's . . . . . . . . . . .96.5 1.9 112.0 84.6
MiIIennium& Copt . .438.3 -0.5 600.5 371.2
MitcheIIs & ButIe . . . .266.1 -4.4 357.0 215.6
NationaI Express . . .223.6 -0.6 270.2 201.6
Rank Group . . . . . . . .129.5 1.5 153.7 109.5
Restaurant Group . . .297.6 0.5 335.0 254.9
Spirit Pub Compan . . .48.3 0.3 55.0 35.3
Stagecoach Group . .279.1 0.6 281.5 200.0
TUI TraveI . . . . . . . . . .193.2 -3.6 271.9 136.7
Whitbread . . . . . . . .1682.0 19.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .227.3 2.3 244.1 176.8
Abcam . . . . . . . . . . . .345.8 2.8 460.0 316.0
Advanced MedicaI . . .90.0 0.0 96.0 64.8
AIbemarIe & Bond . .350.5 2.9 400.1 272.0
Amerisur Resource . .18.8 0.0 29.0 9.5
Andor TechnoIogy . .565.0 -9.0 685.0 387.1
ArchipeIago Resou . . .68.0 -2.0 79.0 55.5
ASOS . . . . . . . . . . . .1749.0 -23.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.8 0.0 92.0 16.0
Avanti Communicat .290.0 1.0 628.0 248.5
BIinkx . . . . . . . . . . . . . .70.3 -0.8 158.0 50.5
Borders & Souther . . .73.3 2.0 74.8 43.5
BowLeven . . . . . . . . . .86.5 4.5 382.3 62.0
Brooks MacdonaId .1130.0 0.0 1372.5 940.0
Cove Energy . . . . . . .137.3 2.3 140.5 61.0
Daisy Group . . . . . . .100.5 -1.0 127.0 88.0
EMIS Group . . . . . . . .425.1 -12.4 580.0 425.1
Faroe PetroIeum . . . .160.8 -1.0 209.8 130.0
GuIfsands PetroIe . . .178.0 1.5 361.5 142.5
GWPharmaceuticaI . .96.5 3.3 130.0 78.5
H&T Group . . . . . . . . .357.0 12.0 395.0 277.0
Hamworthy . . . . . . . .823.5 -1.5 833.5 406.3
Hargreaves Servic .1155.0 9.0 1180.0 818.0
HeaIthcare Locums . . . .3.3 -0.1 3.4 3.2
Immunodiagnostic . .291.5 -64.5 1218.0 277.0
ImpeIIamGroup . . . .239.0 2.5 387.5 195.0
James HaIstead . . . . .445.0 -2.5 495.0 390.0
KaIahari MineraIs . . .242.5 -0.5 301.0 198.3
London Mining . . . . .267.0 9.5 436.5 257.5
Lupus CapitaI . . . . . .124.5 -3.5 150.0 86.0
M. P. Evans Group . .434.0 -10.1 475.0 371.0
Majestic Wine . . . . . .411.3 12.5 510.0 315.0
May Gurney Integr . .280.0 -3.5 302.0 234.0
Monitise . . . . . . . . . . . .29.3 -0.3 40.0 18.5
MuIberry Group . . . .1650.0 9.0 1920.0 1065.0
Nanoco Group . . . . . . .57.0 2.5 95.5 38.0
NauticaI PetroIeu . . .317.5 -0.5 547.0 223.5
NichoIs . . . . . . . . . . . .607.5 -7.5 615.0 410.0
Numis Corporation . . .98.5 1.0 126.0 72.0
Pan African Resou . . .15.3 0.3 17.0 9.5
Patagonia GoId . . . . . .44.0 -0.5 70.0 37.3
Prezzo . . . . . . . . . . . . .66.5 -0.9 71.5 53.5
Pursuit Dynamics . . .100.0 0.0 410.0 67.0
Rockhopper ExpIor .340.3 17.8 386.0 141.0
RWS HoIdings . . . . . .452.5 2.5 481.6 328.0
Secure Trust Bank . .920.0 20.0 920.0 755.0
Songbird Estates . . .112.5 2.0 160.3 104.0
VaIiant PetroIeum . . .418.0 -1.0 672.0 400.0
Young & Co's Brew . .639.5 -8.0 712.0 565.0
CabIe & WireIess W . .23.9 33.5
Renishaw . . . . . . . . .1210.0 10.8
Essar Energy . . . . . .135.6 10.7
Carpetright . . . . . . . .607.0 8.3
Dixons RetaiI . . . . . . .14.6 7.9
Heritage OiI . . . . . . . .198.9 6.3
Computacenter . . . . .395.1 4.2
Domino's Pizza UK .476.8 3.7
Soco InternationaI . .305.1 3.5
FresniIIo . . . . . . . . . .1784.0 3.4
Afren . . . . . . . . . . . . . .117.9 -5.4
Kesa EIectricaIs . . . . .68.3 -4.6
Drax Group . . . . . . . .510.0 -4.1
Weir Group . . . . . . .1884.0 -3.6
IMI . . . . . . . . . . . . . . . .855.0 -2.6
Go-Ahead Group . . .1287.0 -2.5
Spirent Communicat .122.3 -2.5
Ocado Group . . . . . . . .85.6 -2.3
Big YeIIow Group . . .271.0 -2.1
SaIamander Energy .243.2 -2.1
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 9.000 12 . . . .104.25 -0.30 112.1 103.3
Tsy 5.000 12 . . . .100.51 -0.04 104.7 100.5
Tsy 5.250 12 . . . .101.79 -0.02 105.9 101.8
Tsy 4.500 13 . . . .104.53 -0.02 106.9 104.5
Tsy 2.500 13 . . . .283.38 -0.05 287.7 279.0
Tsy 8.000 13 . . . . .112.60 -0.04 117.7 112.5
Tsy 5.000 14 . . . . .111.78 -0.09 112.9 109.2
Tsy 4.750 15 . . . . .114.53 -0.22 115.4 108.6
Tsy 8.000 15 . . . .127.68 -0.23 129.2 123.7
Tsy 7.750 15 . . . .100.00 0.00 106.8 99.4
Tsy 4.000 16 . . . . .113.46 -0.37 114.7 104.9
Tsy 2.500 16 . . . .342.17 -0.36 344.2 312.1
Tsy 12.000 17 . . .120.86 -0.56 129.8 120.9
Tsy 8.750 17 . . . .140.43 -0.64 141.9 132.9
Tsy 1.250 17 . . . . .115.64 -0.35 116.6 106.7
Tsy 5.000 18 . . . .121.31 -0.37 122.5 109.7
Tsy 4.500 19 . . . . .119.38 -0.40 120.7 105.4
Tsy 3.750 19 . . . . .114.19 -0.48 115.6 99.4
Tsy 2.500 20 . . . .362.86 -0.41 367.1 314.0
Tsy 4.750 20 . . . .121.70 -0.43 123.5 106.6
Tsy 8.000 21 . . . .150.79 -0.46 153.4 133.8
Tsy 1.875 22 . . . .126.53 -0.57 129.1 111.3
Tsy 4.000 22 . . . . .115.91 -0.52 118.2 99.0
Tsy 2.500 24 . . . .327.83 -0.63 334.7 275.6
Tsy 5.000 25 . . . .127.75 -0.64 130.6 107.4
Tsy 1.250 27 . . . .123.75 -0.87 127.0 104.8
Tsy 4.250 27 . . . . .119.69 -0.75 122.7 97.9
Tsy 6.000 28 . . . .144.42 -0.74 148.0 119.5
Tsy 4.750 30 . . . .127.06 -0.75 130.5 103.0
Tsy 4.125 30 . . . .316.20 -0.78 322.8 262.2
Tsy 4.250 32 . . . . .119.58 -0.82 123.1 96.0
Tsy 4.250 36 . . . .120.02 -0.88 123.9 95.0
Tsy 4.750 38 . . . .129.78 -0.95 134.2 102.8
Tsy 4.500 42 . . . .126.18 -1.03 130.8 98.9
% %
CITYA.M. 24 JANUARY 2012 21
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A
S SOON as Newt Gingrichs landslide win
in South Carolina was announced by US
networks, two ideas were put forward as
gospel. Firstly, that this was an unexpect-
ed sensation and secondly that, due to the vast-
ness and expense of campaigning in the state,
such a sensation would be impossible for him to
repeat in Florida. Both are highly flawed.
Gingrich knows how to come back from the
dead. He emerged from the wilderness in March
last year to launch his campaign. By June, howev-
er, he was floundering to such an extent that
almost all his senior team quit. But strong debate
performances and the collapse of the
Bachmann/Perry/Cain campaigns saw Newt surg-
ing into the lead last November. His lead in Iowa
led the Romney campaign to release a barrage of
negative attack adverts that successfully dented
his momentum. He came fourth in Iowa, fifth in
New Hampshire and seemed doomed to drop
out after an inevitable defeat in South Carolina.
But, of course, it didnt work out like that for
zombie Gingrich, who thumped Romney by 12
points. You can easily imagine the former
Massachusetts governors campaign screaming
WHY WONT YOU JUST DIE? at their TVs.
If South Carolina threw the Republican nomi-
nation into a chaotic uncertainty, it did at least
settle one question once and for all: Newt
Gingrich is the only viable conservative alterna-
tive to Mitt Romney a status no-one will now be
able to take from him and one that will give him
a solid vote in all future primaries and caucuses.
But was Gingrichs victory really such a sur-
prise and is Florida really so very different?
The briefest analysis of the two candidates
polling figures from South Carolina and Florida
(below) shows a stark similarity, one that should
terrify the Romney campaign. In both, Gingrich
has led for most of the past few months South
Carolina was not an unexpected sensation and
Florida has never been solid Romney country.
Will money matter? In Florida it costs roughly
$1m to run a single advert. Team Romney is
spending $2.3m just between Wednesday and
next Tuesdays vote. However much money
Newts own fundraising committee (SuperPAC)
releases, it seems unlikely hell be able to match
Romney. He has so far spent nothing.
However, Gingrichs win in South Carolina,
like former Pennsylvania senator Rick
Santorums in Iowa, didnt come down to cash,
but playing to the opinions of the Republican
electorate. The effectiveness of a positive Fox
News cycle is likely to be significantly greater
than another campaign commercial or automat-
ed robocall. John McCain was significantly out-
spent in his Florida victory over Romney in 2008.
In a political system dominated by billionaire-
backed SuperPACs, the idea that debates can still
change a campaign is encouraging and Newt
remains a master of this free medium. It will be
especially interesting to see how he plays the
release on Mitt Romneys tax returns on Tuesday.
Insider Advantage and Rasmussen polls,
released yesterday, show Newt Gingrich with an
eight and nine point lead in Florida respectively.
Conservatives, so long divided across a range of
eclectic candidates, are coalescing around him.
Will he win in Florida? The odds remain
stacked against him and the Republican estab-
lishment will do just about everything possible
in the next week to derail his candidature, as
they stare down the barrel of his vast unpopular-
ity among the swing voters they need to win the
general election. Early voting also means
Romney may already be ahead by 40,000 votes in
those cast before Newts South Carolina bounce.
But the astounding story is that Newt
Gingrich could win in Florida bringing terror
to DC Republicans and delight to the Obama
campaign. This could get very very interesting.
Mark Gettleson is head of research at
PoliticsHome.com and senior political analyst for Dods
Engagement.
22
The Forum
CITYA.M. 24 JANUARY 2012
Debates can still change an
American election campaign
and Newt is master of them
Newt Gingrich is back from
the political dead, and only
Mitt Romney can stop him
cityam.com/forum
MARK GETTLESON
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
ANALYSIS l South Carolina
GINGRICH
ROMNEY
13Oct
2011
27Oct
2011
10Nov
2011
24Nov
2011
8Dec
2011
22Dec
2011
5Jan
2012
19Jan
2012
50
45
40
35
30
25
20
15
10
5
0
ANALYSIS l Florida
GINGRICH
ROMNEY
12Oct
2011
26Oct
2011
9Nov
2011
23Nov
2011
7Dec
2011
21 Dec
2011
4Jan
2012
18Jan
2012
50
45
40
35
30
25
20
15
10
5
0
23
Ex-World Bank
official says that
rules on capital
caused the crisis
Holy moly: Banks
were drugged by
Basels rulebook
L
ETS suppose that the human, fallible
credit rating agencies produce ratings
that are absolutely perfect in terms of
measuring the risk of default; and that
banks use these ratings to choose who to lend
to, at what rates and under what conditions.
But then let us add that bank regulators,
such as those in the Basel Committee, believ-
ing they could act as risk-managers for the
world, imposed on banks capital requirements
based on perceived risks and specifically refer-
ring to the risks already reflected in the rat-
ings.
The product is a hallucinogen, a bankers
LSD. It increases the bankers sensitivity to risk:
he sees good credit ratings in much brighter
lights; not-so-good ratings seem far scarier.
For anyone interested in finance and not
engaged in regulatory group-think, the conse-
quence of that hallucinogen must be excessive
bank exposures to what is officially perceived
as not risky for instance, triple-A rated mort-
gage-backed securities or infallible sover-
eigns. The result is a dangerous overcrowding
of the safe-havens and a growing bank under-
exposure to what is officially perceived as too
risky: for instance, lending to small businesses
and entrepreneurs. That is an equally danger-
ous outcome, because of the lost opportunities
to create the next generation of jobs for our
grandchildren.
All of these effects come about before we
even enter into a discussion of the issue that
the credit ratings are also sometimes wrong.
Regulators and experts have been able to
spin this crisis as a result of excessive risk-tak-
ing when it is evidently the result of regulatory
nannies suffering an excessive aversion to risk.
A couple of years into this crisis, now threat-
ening to take the Western world down, the
issue of how capital requirements drugged the
banks is not even discussed, and, because of
that, failed regulators are allowed to proceed
with a Basel III, built upon precisely the same
failed regulatory paradigm. Holy moly.
Who am I? In 1999, I wrote: The possible big
bang that scares me the most is the one that
could happen the day those genius bank regu-
lators in Basel, playing gods, manage to intro-
duce a systemic error in the financial system,
which will cause its collapse.
In 2003, I wrote again: Everyone knows
that, sooner or later, the ratings issued by the
credit agencies are just a new breed of systemic
errors, about to be propagated at modern
speeds.
As an executive director of the World Bank,
in October 2004, my formal written statement
delivered at the board warned: We believe
that much of the worlds financial markets are
currently being dangerously overstretched,
through an exaggerated reliance on intrinsi-
cally weak financial models, based on very
short series of statistical evidence and very
doubtful volatility assumptions.
I am someone who was much too right,
much too early for his own good.
I am not someone who argues that bank reg-
ulators were an acceptable 8.17 degrees off tar-
get, but who argues they were 180 degrees
wrong. In other words, one who wants to
Occupy Basel.
Per Kurowski is a Venezuelan citizen who served
from 2002-04 as one of 24 executive directors at the
World Bank. http://bit.ly/dFRiMs
Not a capital idea
[Re: Why a wealth tax is a very
bad idea, yesterday] A mansion
tax would require a whole new
bureaucracy to value property and
collect the tax a very bad idea.
More generally, a wealth tax is bad
because it destroys capital. Our
collective wealth provides the
seedcorn for new business invest-
ment, so that the economy contin-
ues to grow and generate the
profits and taxes off which we all
live. Taxation of wealth would
encourage people to hide it, or
just reduce the incentive to create
it in the first place all of which
means less wealth available for
productive investment.
Also, at present we do not routine-
ly have to give the taxman an
account of our wealth this is only
done when we die. A general
wealth tax would give government
yet another opportunity to snoop
into people's private financial
affairs a further erosion of our
liberty.
John Hill
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
PER KUROWSKI
BY ANTHONY J. EVANS
CITYA.M. 24 JANUARY 2012
The Forum
I
N A recent article in
the Daily Telegraph,
Ambrose Evans-
Pritchard argued
that policy defeatism is
in the air, and Austro-liq-
uidationists are winning
the popular debate.
Austro-liquidationists is
a neat slur, managing to damn Austrian economics as
both terrifyingly extreme and stupefyingly technical at
the same time. But Evans-Pritchard misrepresents the
Austrian school, while also overestimating its influence.
Martin Wolf of the Financial Times was equally wrong
to write in 2010 that Austrians also say as their
predecessors said in the 1930s that the right
response is to let everything rotten be liquidated, while
continuing to balance the budget as the economy
implodes. I find this unconvincing.
One of the unique insights of Austrian business
cycle theory is that excessive credit creation has the
potential to induce entrepreneurial errors, and the
resulting correction process will be unavoidable and
costly. So Austrians do tend to stress the need for
malinvestment to be liquidated and are sceptical of
attempts to stimulate aggregate demand.
For this reason Austrians tend to advocate a more
laissez-faire attitude towards policy, but this does not
imply doing nothing. On the contrary, there are
many important policy ideas that would help this
adjustment process: increasing labour flexibility,
reducing barriers to investment and reducing margin-
al tax rates where this would boost revenue are just
three examples. The key is that policymakers should
allow the business community to lead the recovery,
rather than attempting to take their place. The most
dangerous risk is that policymakers deem doing any-
thing to be better than doing nothing, and make
policy errors that compound the original problem.
But accepting the necessity of some liquidation and
warning against the harm caused by doing too much
is not what Evans-Pritchard and Wolf have in mind.
They are alluding to the Great Depression, when
Treasury secretary Andrew Mellon is said to have
advised President Herbert Hoover: Liquidate labour,
liquidate stocks, liquidate farmers, liquidate real
estate... purge the rottenness out of the system.
Unfortunately, that doesnt square with the facts,
which demonstrate that it is simply disingenuous to
present the Depression as an Austrian plot.
In 2008, the US academic Lawrence H. White
investigated these claims. He found that Austrian
scholars did not prescribe a monetary policy of liqui-
dationism during the early years of the Great
Depression and that in any case the work of the peri-
ods key Austrian economists Friedrich Hayek and
Lionel Robbins was not available to the Federal
Reserve, who were instead driven by a very different
doctrine, known as real bills. The quotes of Mellon
are derived from Hoovers memoirs and do not square
with Mellons public statements or Hayeks view
that it was harmful to allow a shrinking money supply
to drive down incomes. Indeed, many Austrians point
to the Federal Reserves decision to allow monetary
policy to tighten in the 1930s as a chief cause of the
length and duration of the Great Depression.
Austro-liquidationists make for alarming bogey-
men, but real Austrian policies are more humane and,
so far, much less influential. Unfortunately, the truth is
so often more nuanced than a good insult.
Anthony J. Evans is associate professor of
economics at Londons ESCP Europe Business
School. www.anthonyjevans.com
anthonyjevans@gmail.com
Liquidating false ideas
of Austrian economics
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
24
With continued violence in some of the worlds largest
oil producing nations, as well as political bickering in
its largest consumers, 2012 is set to be far from a
calm year for the markets, writes Craig Drake
Looking for the
next threat to
your returns
T
HOUGH difficult to predict
which of the many hotspots
of conflict military or politi-
cal will flare up next, with
crude and equity prices moving in
close correlation with risk senti-
ment, it is worth looking at the risk
hotspots that have the potential to
drive price over the coming months
CRUDE BEHAVIOR
Crude prices have spent the year to
date bobbing around the $100 a bar-
rel mark. There has been some
upside from the relative European
stability, though these days
European stability has come to
mean temporary lack of defaults,
bank runs and other credit events
rather than financial stability as one
might usually view it. This has been
boosted by a hope that stronger
demand will be seen from China
and other emerging markets
China is the worlds second largest
oil consumer behind the US. It was
reported that December imports of
crude oil grew by 6 per cent and it is
expected that this demand growth
will continue through 2012.
However, this upside has been
dragged down by political tensions
in Iran, Libya and Nigeria.
SLOW RETURNS
Yesterday evening, news broke that
Gaddafi diehards had launched an
attack on the Libyan city of Bani
Walid, 110 miles southwest of
Tripoli. Bani Walid was one of the
last footholds of Gaddafi loyalists to
hold out in the uprising against the
Libyan dictator.
The latest attack will likely be
another stumbling block to a peace-
ful Libya. And until the interim
National Transitional Government
or indeed any replacement govern-
ment can put its internal squab-
bling and rivalries to one side, it is
unlikely that we will see any acceler-
ation in the return of Libya to the
oil-producing Big League.
Shut down after Nato forces start-
ed a peace-keeping bombing cam-
paign in March to protect civilians
against the Gaddafi government,
levels of Libyan oil production have
been slowly moving towards pre-
civil war levels of around 280,000
barrels per day. According to Opec,
Libyas oil industry is almost back to
normal, but the oil cartel is hardly
known for its full and transparent
dissemination of information.
GOODLUCK WITH THE STRIKES
Though Nigerian President
Goodluck Jonathon appears to have
achieved some form of peace with
unions after an agreement to cut
the cost of petrol, it looks like a frag-
ile ceasefire.
At the start of the month, the
markets reacted to news that
Nigerian unions would go on stike
in protest over the removal of the
huge government subsidy on fuel
threatening to close down the coun-
trys oil production.
Though Nigeria is Africas biggest
oil producer and supplies nearly 5
per cent of daily US crude demand,
it relies mainly on imported refined
fuel decades of corruption has left
the country with little capacity to
process oil itself.
The removal of the subsidy
caused refined oil prices in the
country to almost double, leading
protesters to take to the streets
with the police responding with
tear gas. The unexpected move was
made on 1 January, partly in
response to IMF pressure to deregu-
late the industry.
As he announced what is likely to
be a temporary reinstatement of the
subsidy estimated to cost around
$8bn per year the president said
that his government would contin-
ue to pursue full deregulation of the
downstream petroleum sector.
LOST SENSE OF HORMUZ
Following Iranian military maneu-
vers in the Strait of Hormoz,
European Ministers have moved
ahead with their threats to place an
embargo on the importation of
Iranian oil into the EU.
The move could escalate tensions
with Iran the second largest oil
producer in the Opec tree house
exports around 20 per cent of its oil
to Europe and has threatened to
close the Strait if the embargo goes
ahead.
But analysts are divided about
just what an effect this move will
have on oil prices. It is likely that
arrangements will be made with
Saudi Arabia and Kuwait to pick up
the slack. At the same time, a drop
off in European demand in part
driven by a sliding euro-dollar mak-
ing dollar-denominated crude
increasingly expensive for the
European market.
US DEADLOCK
While European and US politicians
if nothing else possess a great
aptitude when it comes to finger
wagging at other countries, they do
not have the best of track records
when it comes to practicing what
they preach. Though on one hand
urging the likes of Iran and Libya to
achieve national unity and commu-
nication, they are more than capa-
ble of grinding their respective
economies to a halt with political
posturing and bickering.
As the race for the Republican
nomination continues and those on
both sides of the house eye this
years presidential elections, the
potential for a repeat of Septembers
US deadlock looms large. Whatever
the supply issues in the Middle East,
they will be trumped by a major US
slowdown or political shot to the
foot.
WHERE TO PROFIT
We dont know what or where the
next diplomatic hotspot will be, but
we are sure therell be something
and that the markets will continue
to worry about security of supply,
says Bill Mott of the PSigma Income
Fund. In this environment of a
stronger-for-longer oil price, we
think the oil majors will continue to
do well.
The likes of Royal Dutch Shell, BP
and Premier Oil should see sus-
tained growth, with the smaller
players struggling to keep up with
the costs of entry to the club, but for
real volatility, spot crude is the do-
or-die shot.
Wealth Management | Trading
A
S THE old adage goes, in the land
of the blind the one eyed man is
king. In the currency market the
Aussie has become the one eyed
man. Starved for yield, FX investors con-
tinue to flock to the Australian dollar,
despite growing evidence that growth
down under is decelerating quickly.
Last week Australian employment
surprised the market, by printing at
-29,300, versus a forecast of 10,200,
while the unemployment rate decreased
to 5.2 per cent from 5.3 per cent
expected as the participation rate
declined to 65.2 per cent. The internals
of the labour report were not nearly as
gloomy as the headline number would
suggest, with the vast loss in jobs com-
ing from the part-time sector. Overall
however, Australian employment
growth has been nearly flat in 2011 its
worst performance since 1992.
As a result of last weeks data, inter-
est rate markets have now priced in an
88 per cent probability that the Reserve
bank of Australia (RBA) will lower rates
once again at its next meeting in
February. This week the market will be
watching the Australian inflation num-
bers very carefully. Yesterdays
Producer Price Index (PPI) data has
already printed softer than expected at
0.3 per cent, versus 0.4 per cent eyed,
but the true focus of the market will be
on the Australian Consumer Price Index
(CPI) report scheduled for 12.30 am
tomorrow morning. The market antici-
pates a sharp decline to 0.2 per cent,
from 0.6 per cent the month prior, but if
the data prints negative, like it did in
neighbouring New Zealand last week,
the odds of a rate cut will rise to nearly
100 per cent.
Meanwhile, boosted by its G-20 lead-
ing yield of 4.25 per cent, the Aussie
continues to soar, as investors ignore
the economic warning signs. On Monday,
Aussie dollar-dollar climbed above the
$1.0500 for the first time since
November. Is this the start of a new run
towards the all time highs at 1.10? I
doubt it. Ultimately, a bet on Australia is
a bet on China and China is clearly slow-
ing down. The latest Manufacturing
Purchasing Managers Index (PMI)
report from China showed that business
activity showed no improvement regis-
tering a reading 48.8 its second con-
secutive month of contraction.
Despite rising exports to China,
Australia runs a current account deficit
of more than 2 per cent of GDP and a
budget deficit of around 3 per cent. The
current account deficit has been easy to
balance because of tremendous invest-
ment flows into the Aussie dollar, but if
those flows turn into a trickle, as the
rate continue to decline, the Aussie will
have to depreciate. Some analysts are
calling for as much as a 100 basis point
cut in the benchmark rate this year. If
that were to occur, the Aussie could
tumble to as low as $0.9000 as carry
traders exit their positions.
Technically, if the Aussie clears the
$1.0500 handle it can run all the way to
$1.0700 level before encountering the
double top from September and October
of last year. Yet longs should be cautious
at this point. The upside in the pair is
relatively limited, while the downside
could be considerable if the RBA were
to compress yields further.
One interesting way to play Aussie
weakness may be through a short on
Australian dollar-Canadian dollar cross.
As growth in Asia begins to slow, while
activity in North America picks up, the
pair could head towards parity from its
current level of Ca$1.0600.
DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
AUSSIE TOP MIGHT BE NEAR
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
Mar 2011 Nov2011 Jan2012 May2011 Jul 2011 Sep2011
1.04
1.06
1.08
1.10
1.12
0.98
1.00
0.96
0.94
1.02
ANALYSIS l Australian dollar-dollar
$
Ca$
Mar 2011 Nov2011 Jan2012 May2011 Jul 2011 Sep2011
1.04
1.05
1.06
1.07
0.98
0.99
1.00
0.97
0.96
1.02
1.03
1.01
ANALYSIS l Australian dollar-Canadian dollar
WTI crude
S&P 500
Nov Dec 2012
15
-5
5
10
0
ANALYSIS l Spot crude - equities correlation
STRATEGIST
JOHN KICKLIGHTER
My pick: Short S&P 500 Below 1,300
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
The fundamental outlook for global growth and financial stability is
crumbling and yet, risk-based assets continue to nudge higher. This
disparity is founded in hope of unnatural calm and stimulus. However,
the potential risk of a downdraft though not the prevailing trend is
severe. Therefore, Im watching to see if the S&P 500 loses momen-
tum and collapses below 1,300, with a mind for a short and stop
above the current swing high.
ANALYST PICKS
QUANTITATIVE STRATEGIST
DAVID RODRIGUEZ
My pick: Long euro-dollar above $1.2875
Expertise: System trading
Average time frame of trades: 1 week 6 months
I think we are in the midst of a major euro-dollar short-covering
rally, as the pair bounces significantly off of its most recent lows. I
think the strong rally through Mondays session sets the stage for
strength throughout the rest of the week, and as such Id like to
get long. Ill place the stop below Mondays low of $1.2875 and
look for initial targets of $1.3200, with an ultimate objective of
$1.3500.
FOREX STRATEGIST
JOEL KRUGER
My pick: Looking to buy euro-yen
Expertise: Technical analysis
Average time frame of trades: 1 week
The euro is finally starting to correct after weeks of pressure. The lat-
est break above $1.3000 opens the door for additional upside over the
coming days. From here, look for additional short-term corrective gains
towards the $1.3500 area, before the market stalls out in favour of the
next major lower top and underlying bear trend resumption. The bullish
reversal close in the previous week provides additional confirmation for
short-term bullish outlook. I will look to sell into rallies.
Wealth Management
Brussels
Libya
Nigeria
Iran
China
Oil prices are
unlikely to tank
Picture: REUTERS
Wealth Management | Trading
IG INDEX
DAVID JONES
Stock markets may have
surprised a few people this
year by the strong start we
have seen to trading after
the Christmas break. While
we still have the dual wor-
ries of the ongoing
Eurozone crisis and slowing economic recovery,
some would view it as somewhat irrational
but nowhere is it written that markets have to
be logical.
Investors appear to have a more relaxed
approach to the problems of the Eurozone and,
while an absolute solution does not appear to
be that much nearer, it does feel like markets
have now discounted much of what we know
about this problem and are looking further
ahead. Ignoring the slowing economic recovery
is a little harder to understand the risks of a
double-dip recession are far more likely than
they were 12 months ago, but the FTSE 100 is
only around 100 points lower over the past 12
months.
In the short term at least there still seems to be
an appetite to buy on the dips, so it does not
seem too unrealistic to see the 6,000 level chal-
lenged in the first few months of 2012. The
5,600 level has proved very resilient to any
shock,s so for now at least the market appears
well supported.
The old adage has it that bull markets climb a
wall of worry so it seems unlikely to see the
rate of momentum for the FTSE 100 at the
moment continue through 2012, bearing in
mind we have the same problems that weighed
last year. We shouldnt let the enthusiastic start
to trading this year lull us into a false sense of
security, so it is difficult to see significant
progress through 6,000 as the year unfolds.
CITY INDEX
SANDY JADEJA
The FTSE 100 is in a
unique position at the
present moment. On
the one hand we have a
bullish bias with a
potentially bullish pat-
tern in development
and at the same time we have the index
approaching a resistance level. Having
cleared past the initial hurdle of 5,600, which
held back the index since October 2011, the
next upside objective of 5,820 is within easy
reach. After achieving 5,820 it is likely that
the FTSE will aim for the psychological level
of 6,000.
However, the reach for 6,000 may require
several attempts to break past 5,820 first.
The immediate picture sports a potential five
wave pattern from the November 2011 low.
This would suggest that we are likely to see a
pullback after reaching 5,820, before attack-
ing the 6,000 level. Also, the current move
up is a correction against the main bearish
trend since the July 2011 high. This means
that there is likely to be a larger degree cor-
rection in store for the bears to come along
and spoil the fun for the bulls. This is most
probably going to occur during March to
April, as there is a time spiral window during
these months. Once the FTSE creates a
reversal pattern at the cited resistance levels
the correction is likely to be greater than 10
per cent and could see the FTSE trade back
towards the 5,200 area.
What we can count on is that we will most
likely have volatility and range expansion
picking up over the next few months, creat-
ing ample trading opportunities for both bulls
and bears alike.
GFT
DAVID MORRISON
The FTSE 100 fell 6 per
cent last year, which was
bad news for buy and
hold investors. Its per-
formance compared
poorly with the major
US indices: the Dow Jones Industrial Average
managed a 5 per cent gain, while the broader-
based S&P 500 index ended flat. Nevertheless,
the UK index easily outperformed the German
Dax (down 15 per cent) and Chinas Shanghai
Composite, which lost 21 per cent over the
course of the year.
Theres been a good start to 2012 with
investors apparently happy to increase their
exposure to UK equities. Many now believe
that the world has seen the worst of the finan-
cial crisis. Recent economic releases from the
US have come in better than expected, while
Chinas GDP growth remains robust and infla-
tion continues to moderate, reducing fears of a
Chinese hard landing. As for Europe,
investors have shrugged off ratings agency
downgrades and lowered growth forecasts. It
appears that all bad news is now priced in.
Risk appetite is currently strong thanks to the
expectation of further stimulus from the Bank
of England next month, while the ECB looks
like expanding its long term refinancing opera-
tions to help backstop troubled European
banks. The IMF wants to build a larger bail-out
fund, and its even possible that the US Federal
Reserve is open to additional stimulus meas-
ures, once it finds a way to spin it positively.
Yet these interventions show that there are
still fundamental problems with the global
economy and our financial institutions. Until
these are dealt with, the outlook remains
uncertain.
CMC MARKETS
BRENDA KELLY
From a technical perspec-
tive, the FTSE 100
dropped below the 5,800
level in late July 2011 on
the basis of the
omnipresent escalating
debt crisis in Europe.
Only one attempt was made to regain this level
in late October last year and this failed to
break above 5,783, which coincides with the
76.4 per cent Fibonacci retracement level from
the May highs to the August lows. The FTSE is
at present retesting this resistance point and
only a convincing break and close above would
see 5,900 and upwards in the crosshairs.
The UK has a difficult balancing act in stimu-
lating growth, while protecting its AAA rating
through massive savings on public spending.
The economy is at a critical stage and is pre-
dicted to have shrunk by 0.1 per cent in the
final quarter of 2011.
The largest constituents of the FTSE 100 on a
sector basis are financials, miners, oil and gas.
These are sectors that generally do well when
the economy is growing, not contracting.
The ECBs long term financing operation has,
for the moment, helped to allay the funding
problems facing the European banking system.
Any escalation of the financial crisis within
Europe may weigh heavily on the FTSE given
the UK financial sector's exposure to European
banks and sovereign debt.
Inflation is showing signs of easing, so a fur-
ther extension of the QE programme in the
early part of this year is largely anticipated.
This could easily give the equity markets and
ergo the FTSE 100 a boost. Global demand
looks set to remain weak, so even with a weak-
er pound, the FTSE has a difficult year ahead.
Uncertainty holds sway over the FTSE
As the benchmark index headed to a new high for the year, we asked four experts for their views
T
HERE is a lot of speculation sur-
rounding oil explorer
Rockhopper. With takeover
talks lingering, it could only be a
matter of time before an announcement
is made. However, we have seen this
stock rally from 30p to over 500p, and
then drop like a stone to 150p, so the
only thing we know for sure is that
nothing is certain. But as the old adage
goes: buy on rumour, sell on fact. It
could be a similar scenario here. Capital
Spreads quotes 343.8p-346.2p.
BP shares have had a good run since
early October, as the price of crude has
rallied sharply over this time. However,
the stock has struggled to make much
progress of late. It has been unable to
break convincingly above 477p/480p,
the 50 per cent retracement of the
sell-off, following the disaster in the
Gulf of Mexico. Results are due out on
7 February, but there is uncertainty
over the size of the settlement for the
Gulf accident and this is capping gains.
GFT is quoting 474.9p-475p for BP
cash.
WH Smiths Christmas update on
Wednesday will be of interest to share-
holders looking to see whether the
retailer bucked the trend over the fes-
tive season and had a boost in trading.
On the other hand, the likes of Amazon
and other online stationers could have
had a serious impact on footfall for the
high street chain. The technicals sup-
port a bullish trend, so lets see if the
store can pencil in a strong set of
results. Capital Spreads quotes a price
of 538.8p-540.7p.
The FTSE has broken through its
near term resistance around the 5,720
area and on Monday it even recorded a
new high for the year. With clients
remaining sceptical that the strength
can continue they remain bearish
overall are they set for more pain as
the index rises further? Capital
Spreads quotes a price of 5,775.0-
5,776.0 for the UK 100 index.
Easyjet gives a trading update on
Thursday and investors will be keen to
see how the airline is doing during
these tough economic times. The stock
has performed well since October 2011
as people are reluctant to give up their
annual holidays and trade down to
budget airlines in a bid to save money.
Capital Spreads quotes 419.8p-421.7p
for Easyjets share price.
Has Europe risked price stability by
banning Iranian oil imports from July
onwards? This had been on the cards
for a few weeks, so the price of black
gold hasnt jumped up too much on the
announcement. The question now will
be whether we can expect a strong
policy reaction from Tehran? Making
good on its threat to close the Strait of
Hormuz would be the worst case for
anyone in need of cheaper oil. IG
Markets $5 mini contract for April
delivery is priced $1,1047-$1,1056.
Cairn Energy has had a torrid time
in the last couple of years, as it shifted
its focus away from India towards
drilling in Greenland. Now that it has
sold a large part of Cairn India and has
almost $5bn sitting on its books, the
oil explorer has decided to return capi-
tal back to its shareholders. With the
stock going ex-dividend on 6 February
for the princely sum of 160p per share,
the stock could improve further from
current levels as income hunters begin
to pile in. ETX Capital quotes 295.2p-
296.1p for the rolling daily contract.
After its late December slide to
$1,524, gold has rallied hard, adding
on an impressive $150 in just three
weeks. Major hurdles at $1,664 and
$1,674 were cleared on Monday, open-
ing up a run at the $1,700 and maybe
even $1,720 level, where it may well
run out of steam and retrace back to
$1,674. Spread Co offers a spread on
spot gold of $1,675.5 - $1,675.9
Philip Salter
THE TIPSTER
HOPPING ONTO A
ROCK SOLID BET
COULD BE SLICK
Lifestyle | Burns Night
28
I
f youre thinking of hosting your own
Burns night, the haggis should be the
star of the show. Contrary to the
belief of many south of the border, a
well cooked haggis is far more than a bag
of offal. Quality haggis contains an aro-
matic blend of spices and oatmeal, with
meat as high quality as a decent butchers
sausage. McSweens sell delicious haggis,
which you can pick up in Selfridges.
Addressing the haggis before you eat it is
an integral part of the celebration. The host
should recite Burns famous Address To A
Haggis, which was written as a celebration
of his homeland. True Scots will know it by
heart: for everyone else, heres a reminder.
Fair fa' your honest, sonsie face,
Great chieftain o' the puddin-race!
Aboon them a' ye tak your place,
Painch, tripe, or thairm:
Weel are ye wordy o' a grace
As lang's my arm.
The groaning trencher there ye fill,
Your hurdies like a distant hill,
Your pin wad help to mend a mill
In time o' need,
While thro' your pores the dews distil
Like amber bead.
His knife see rustic Labour dight,
An' cut you up wi' ready sleight,
Trenching your gushing entrails bright,
Like ony ditch;
And then, O what a glorious sight,
Warm-reekin, rich!
Then, horn for horn,
they stretch an' strive:
Deil tak the hindmost! on they drive,
Till a' their weel-swall'd kytes belyve,
Are bent lyke drums;
Then auld Guidman, maist like to rive,
"Bethankit!" 'hums.
Is there that owre his French ragout
Or olio that wad staw a sow,
Or fricassee wad mak her spew
Wi' perfect sconner,
Looks down wi' sneering, scornfu' view
On sic a dinner?
Poor devil! see him ower his trash,
As feckless as a wither'd rash,
His spindle shank, a guid whip-lash,
His nieve a nit;
Thro' bloody flood or field to dash,
O how unfit!
But mark the Rustic, haggis fed,
The trembling earth resounds his tread.
Clap in his walie nieve a blade,
He'll mak it whissle;
An' legs an' arms, an' heads will sned,
Like taps o' thrissle.
Ye Pow'rs wha mak mankind your care,
And dish them out their bill o' fare,
Auld Scotland wants nae skinking ware
That jaups in luggies;
But, if ye wish her gratefu' prayer,
Gie her a haggis!
Get the haggis
right at your
Burns supper
A
lmost 215 years since the death of
Scotlands most famous poet, Burns
night has become an established
part of the London culinary calen-
dar, with its popularity growing every year.
We look at some of the best places to get the
most from you haggis this year and a few
places to cut loose once youve eaten your
fill of the chieftain o the puddin-race.
THE RIB ROOM
Jumeirah Carlton Tower, Cadogan Place
20-25 January
50 for four courses
The newly re-opened Rib Room is offering
an array of classic seasonal Scottish dish-
es given a modern twist by head chef Ian
Rudge. Crowdie cheese, pickled vegeta-
bles, beetroot, roasted walnuts and crou-
tons is followed by pan-fried scallops with
a Cullen skink and cauliflower pure.
Then its onto the main event with a loin
of Highland venison with haggis and chest-
nut casserole, parsnip and apple. Desserts
include cranachan, chocolate and
Drambuie mousse and Dundee cake souf-
fl. Tunnocks-inspired petit fours accompa-
ny your coffee. Upgrade to the Buccleuch
private dining room for 100 a person and
receive a bottle of Glenmorangie Astar
Single Malt to share and an additional mid-
dle-course of haggis, neeps and tatties wel-
comed by a piper.
www.theribroom.co.uk
HIX AT THE ALBEMARLE
Brown's Hotel, Albemarle Street, W1S 4BP
25 January
32.50 for three courses
Executive chef Lee Streeton has created a
special Scottish menu, with starters of
cock-a-leekie soup, tatties and pickled her-
ring with capers or Kingairloch venison
salad with woodland mushrooms. Haggis
is first on the list for the main but those
unconvinced by the signature dish can go
for Shetland Island mussel stew with fen-
nel or fillet of Peterhead cod with razor
clams and Orkney bacon. To round it all
off there is a choice of tipsy laird (a tradi-
tional Burns night trifle dessert),
cranachan (a creamy pudding served with
raspberries) or a Scottish farmhouse
cheese board with red onion chutney.
www.thealbemarlerestaurant.com
AVALON
16 Balham Hill, London SW12 9EB
25 January
15 for a tutored malt tasting
A special event in the pubs Blue Room fea-
tures a tutored malt tasting, complete
with Scottish canaps paired with each
dram. Hosted by a series of whisky
experts, the night will include a how to
in perfecting the five-step tasting system:
colour, body, nose, palate and finish.
Guests will be able to sample more than
20 varieties from the four main whisky
producing regions: Highlands, Lowlands,
Islay and Speyside. There will also be a
selection of tastings of the blended vari-
etals of Auchentoshan and Bowmore
alongside single malts such as Talisker,
Glenkinchie, Dalwhinnie and Oban.
www.theavalonlondon.com
CEILIDH CLUB
Hammersmith Town Hall, King St, W6
27-28 January
25 entry
Burn off your haggis with three hours of
Scottish country dancing with a twist. The
Ceilidh Club (pronounced kay-lee) has live
bands to bash out the tunes while you
attempt to dance the likes of the Gay
Gordons, Eight Reel and the Dashing
White Sergeant. For those who didnt have
the advantage of growing up in Scotland,
there is a caller who will help you get to
grips with the steps. Imagine a giant
Scottish wedding without the aire of men-
ace and youre pretty close. A great way to
finish up your Burns celebrations.
Booking in advance is a must, with
tickets expected to sell out.
www.ceilidhclub.com
Steve Dinneen looks at
the best way to
celebrate the great
Scottish bard
The best places to dine to
ensure a first degree Burns
Avalon (top) is host-
ing a Burns malt
tasting, while
Browns and The Rib
Room (above left
and right) have spe-
cial set menus
HEAD OF DISTILLING AND WHISKY
CREATION AT GLENMORANGIE
DR BILL LUMSDEN
EXPERT VIEW: WHISKY
A
n exceptional malt whisky is an essential
part of Burns Night celebrations to toast
the life writings of Scotlands best-known
poet and to pair with traditional Burns
Night supper dishes. Whisky is often enjoyed
throughout the meal to toast the haggis, the
memory of Robert Burns and the lassies (ladies)
who would have historically prepared the haggis.
The best single malt Scotch whisky is made
from barley and mineral rich spring water which
is fermented, distilled and then matured in
wooden casks from which the liquid gains its
delicate flavours and intriguing layers of aromas
and taste. Glenmorangie chooses to mature its
whiskies in ex-bourbon casks, renowned for
their diverse flavour profiles, for at least ten
years. Whisky is best enjoyed neat in its purest
form where the complexity of the flavours and
aromas is at its fullest intensity. However,
adding a little water will soften the alcohol,
causing a change in the texture and bouquet of
the whisky and reveal further layers of aromas
and complexity. Adding ice closes down the top
notes that are released with water, accentuat-
ing instead the base flavours from the oak bar-
rel. A simple good quality tumbler enables the
aromas to be released either before or after
adding water.
For a classic delicate and deliciously complex
single malt, Glenmorangie Original is a ten-year-
old elegant and floral whisky, produced by mar-
rying the delicate spirit that emerges from
Scotland's tallest stills with American white oak
casks. For those wanting to try something spe-
cial, Glenmorangie Artein (69.99, The Whisky
Exchange) has just been released - an assem-
blage of 15 and 21 year old single malts, extra
matured in Super Tuscan wine casks with
flavours of ripe apricots, peaches and plums.
With its long finish and high notes of zesty,
lemon sherbet and a flourish of creamy cappuc-
cino, it is an extra special serve for Burns Night.
29
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
A
s is typical in the London restaurant
scene, we have a very international team
at Lutyens. My assistant Andres is from
Canada and, as he went home for
Christmas, he brought in some Canadian wine
for us to try. There is comparatively little
Canadian wine in the UK market aside from Ice-
wine from Ontario. This is a style that originates
in Germany where the grapes are left to hang on
the vines until well into winter. The grapes freeze
and are picked and pressed while still frozen, this
effectively extracts some of the water from the
juice and so concentrates it giving a super sweet
wine.
Thats not what he brought back however as
hes from British Columbia. These are wines
that have a great deal in common with the
wines of the Pacific North-West of the USA. Its
the usual story, as you move away from the
equator the climate becomes cooler and the
wines tend to higher acidity and lower alcohol.
Certain grape varieties are more suitable for
cooler climates and, to generalise wildly, as the
growing season is longer they tend to be more
aromatic as the flavours have longer to accu-
mulate in the grapes.
The red is Black Hills Nota Bene 2008,
shame on us for opening it as its just a baby, a
Bordeaux style blend of Cabernet Sauvignon,
Merlot and Cabernet Franc. Theres an elegance
and freshness to it that mark it out as a cool cli-
mate wine but, in fact, it is from the southern
end of the Okanaga valley, where the gravelly
soils blend into the sandy desert of Osoyoos.
Along with the crunchy Cabernet fruit (and
Franc leafiness) theres a Sage-like herbaceous-
ness along with tarry liquorice, coffee and
cocoa powder. Nice round mouth feel is coun-
terpointed by fine tannins and brisk acidity.
Delicious, but Id like to see it in a few years
time. I feel like Ive learned something about
Canadian wine today.
A lesson learned
on Canadas wine
Kitchen Jol Antuns
29 Old Burlington Street, London, W1S 3AN
T: 020 7494 5660
FOOD hiiii
SERVICE hhiii
ATMOSPHERE hiiii
Cost per person without wine: 65
L
egends arent what they used to be.
Almost anyone can be one. You have
to do something pretty heinous to
be both famous and dead and not be
called a legend. Branding the deceased
anything less is tantamount to ostenta-
tiously passing wind at their funeral.
It comes as little surprise, then, that
The Embassy Mayfair, which has been
around since 1870, is trumpeting its
reopening, as Kitchen Jol Antuns, as
the return of a legend.
The restaurant is an expansive canteen
with white tiled floors and mirrored pil-
lars. Off-white booths are accented by a
disagreeable shade of peppermint.
French Riviera seems to be the goal but
its closer to Club Med, or a Saga cruise
holiday, right down to the framed photo-
graphs of arm-band clad bathers. To real-
ly give you that cruise-liner experience,
the lights flickered on and off for the
duration of my meal, while the staff
gazed sadly upwards like lost sailors try-
ing in vain to read a map of the stars.
The chefs played their roles to a tee,
preparing food that would have been at
home on an ocean-liner buffet. The gnoc-
chi starter came drenched in a watery
sauce, while the cubes of sponge accom-
panying it were unrecognisable as crab.
The buffalo with aubergine was a greasy
mass of unappealing grey and beige that
tasted like it had been violently drowned
in a tub of oil.
The starters were unpleasant but they
were left in the shade by the mains. Coq
au vin should be ingrained in the DNA of
a restaurant specialising in Provenal cui-
Steve Dinneen nds
Kitchen Jol Antuns
fails to live up to its
legendary reputation
More cruise liner than chic
The expansive can-
teen features off-
white booths
accented by an
unpleasant pepper-
mint green
sine; it should come as naturally as
breathing or being rude to American
tourists. Not so. The insipid hunk of
soggy flesh came, rather appropriately, in
its own tiny black sarcophagus, hunched
in a feeble sauce and decorated with a
sorry selection of wilted vegetable mat-
ter. Its coffin should have remained
sealed. The duck was worse a thick
brown scab, ripe for the picking, sat atop
a layer of chewy fat. It was a roll-call of
how not to prepare anything with a beak
and both left the table with barely a bite
taken.
Dessert was no sweet relief. It had
never before occurred to me to construct
a layer cake with sheets of sugar-soaked
loft insulation and this was a visceral
demonstration of why.
I would have been disappointed had
this meal been served up in
Wetherspoons, where the bill would
have come to a fraction of the 200
(which included a bottle of wine and a
couple of cocktails). Jol Antuns (the
chef) won a Michelin star in 1994 for his
Les Saveurs restaurant on Curzon Street.
Whatever your views on the Michelin sys-
tem, his latest venture isnt even close.
A meal with so few redeeming features
is a rarity an experience you should be
able to dine out on for years to come,
embellishing the details with every telling.
Antuns even falls short on this count. The
ex-footballer Tony Adams was sitting at the
next table to us apparently he met his
wife years ago at the members club (and
when thats the most interesting talking
point after a meal, there is something
sadly lacking). People probably think hes a
legend. Hes certainly more qualified than
Kitchen Jol Antuns.
Lobster and burgers, folks... thats it
T
HE vogue for culinary simplicity has
been around for a while. The shorter
the menu, the better after all, asks
the modern diner, how can caviar,
steak, chicken, risotto and a thousand other
dishes from one kitchen and one staff be
fresh, made with the best of the days ingre-
dients?
Well, the guys behind Goodman, the
Russian-owned smash hit chain of steak
restaurants (a new one has just opened in
Canary Wharf, adding to the wildly popular
Mayfair and City outposts), have taken this
idea a step further with Burger & Lobster.
Its hardly a graceful name, describing the
entirety of the menu in distinctly utilitarian
terms. But boy has it hit a nerve: on
Saturday lunch, the wait for a table (no
bookings another nod to a London vogue)
was an hour.
There are three options: burger, lobster or
lobster roll. The lobster comes steamed in
the shell but you can have it finished on
the grill if you want. Lobster and roll are
both served with clarified butter or a deli-
cious lemon and herb butter.
This is the weird bit, where simplicity
is stretched almost out of reason.
Everything costs the same: 20, which
means youre getting the cheapest good
Simplicity is all at the
hot new opening from
the Goodman folk,
says Zoe Strimpel
Steamed lobster is
one of three options
at Burger & Lobster.
whole lobster in town alongside
what I believe to be the most
expensive burger.
So how does it taste? The lob-
ster looked like lobster, and
chewed like lobster which is to say,
in a way similar to pliant rubber. But
it didnt quite taste of the sea.
Delivered fresh by the tank-load from
Nova Scotia, my New England-
reared taste buds were searching
for more salt, more reference to
marine origins. When eating lobster
in wintry Clarges Street, rather than on
the Massachusetts marshes in high sum-
mer, you need your lobster to taste all the
more of the sea.
With the lobster roll, which was a very
generously stuffed, heaven-sent buttery
brioche, my (also American) companion
and me looked at each other and said: Its
good. Its good. But it doesnt taste that
much like lobster.
Just why remains a mystery, but at 20,
youre getting good value especially as it
all comes with chips and a rather sexy pot
of salad.
The question of the burgers price tag is
resolved, to some degree, by its quality and
weight: all grass-fed Irish and corn-fed
Nebraskan beef, sans filler, each weighs
10oz. Its a lovely burger, and should be,
given its price.
Cocktails and champagne by the glass are
9. The simplicity, ironically, is gimmicky,
but its a welcome gimmick, and this is a
worthwhile den of life on an otherwise curi-
ously dead street.
29 Clarges Street, W1J 7EF. Three stars.
www.burgerandlobster.com
Restaurants

Lifestyle | Health
CITYA.M. 24 JANUARY 2012 30
L
IKE many a busy office worker, I failed
to prepare for my recent ski holoday.
And Im paying the price with a stiff-
ness of gait and inelegance of posture
that simply cant be attractive.
Dont make the same mistake. Here are
some ways to limber up so that youre able
to walk from slopes to aprs ski bar and
once the funs over, up the front door stairs,
without too much pain. Obviously, the bet-
ter your ski muscles are prepared, the bet-
ter youll ski. If youre one of the many
flocking to the slopes for February half
term, you have ample time to prepare.
The more time, the better youll feel.
Here, City A.M. Fitness and Health
columnist Laura Williams walks you
through six ways to get ready.
THE CRUCIAL CORE
Reduce risk of falls, improve posture and
enhance performance by working on
your core. This Swiss ball exercise is per-
fect for working your core in a rotational-
type movement, as youll be doing when
youre skiing. Place your hands shoulder
width apart on a fitness ball. From here,
walk backwards until legs are extended,
with body in a straight position. Then
slowly bring one knee towards the chest
by creating this instability youll be forced
to use your core muscles to keep your bal-
ance and maintain a straight spine.
TOUGHEN THE TICKER
Cardiovascular or aerobic exercise will
help to build the much needed
endurance required for exercising all day
at high altitudes. A mixture of stairclimb-
ing, running and the crosstrainer (basical-
ly, anything where youll be on your feet)
will work wonders for ski fitness. Try a
combination of steady aerobic plodding
(where your heart rate isnt too high and
you can still hold a conversation), with
interval style training where you
alternate between higher-intensity bursts
(e.g. a sprint) and low intensity ones (e.g.
walking). Aim for at least three sessions of
over 30 minutes a week if youre looking
Correction: The Russell Norman pictured on the front page of yesterdays City A.M. was not the London restaurateur, as intended, but New Zealand politician
Russel Norman. We apologise.
CITY DAD
I
WISH I could say the radio alarm had
failed. But I cant. Anyway, with infant
twins in the house, neither bugle call
nor drum roll is ever required for
reveille. Nevertheless, at 6.45am Im
already 45 minutes behind schedule.
The Perth flight leaves at 11am and its
clear I wont make it into the office
before departure as Id planned.
Juliette will have to courier the Cooke-
Webb Mining documents to me at the
airport. Hell, Ill have more than 19 hours
airborne to study them before arrival
and even Sir Rodericks buffoon of a
son-in-law and his colleagues at
Osgoods have worked out that CWM is
attractively undervalued and distinctly
vulnerable; iron ore, with an enticing
sideline in gold.
I grab my phone and hit Juliettes
number. A moment later the home
phone rings. Damn. As I dash to answer
it, or at least to terminate its ringing,
Noel staggers sleepily from his bedroom.
Daddy.
Wheres Juliette? I growl - to myself
rather than to Noel - in the absence of a
response from her. I look at my phone.
Aggh. Ive hit the wrong number. It
seems Im the early morning caller dis-
turbing my own households sleep.
Daddy.
Noel, get back to bed. Its early, I
bark.
Have you already been to Australia
daddy? Have you got my boomerang?
This is a considerable advance on Are
we there yet? ten minutes into a three
hour car journey.
No. Now get back into bed.
Daddy
Noel. I turn, raising my voice. Im
late. Be quiet. Noel shrinks from me. He
begins to cry. Daddy, he whimpers,
clinging to my leg.
Its alright son. Im sorry. I put my
hands around Noels golden-haired head,
the colour and shape of my fathers head.
My phone rings. Its Juliette. I ignore it.
City Dad will continue next Tuesday.
For previous episodes, go to
www.cityam.com.
to build endurance.
IF YOU DO JUST ONE MOVE...
Try the squat n sweep for strengthening
all lower body muscles and most upper
body ones too. Stand with feet hip-width
apart and hold a medicine ball or dumb-
bell. Squat as low as you can (keeping
knees behind
toes and abs
contracted) and
touch the ball to
the floor. Press
through the heels
to rise back up
while sweeping the
weight overhead. Repeat. Do two sets of
20, every other day.
DESK PREP
Want to make use of time in the office?
Inadequately conditioned quad muscles
(front of thigh) can cause early slope
fatigue. Try doing this knee extension
exercise a couple of times a day at your
desk: Sit on the edge of your chair with
knees bent before slowly lifting both legs
off the ground (you may need to hold on
to sides of chair). Hold both legs in the air
for a count of five, lower and repeat. Do a
total of 10 reps.
IF YOU HAVE TIME TO PREPARE
Work on strength for starters. Google
these top skiing moves to add to your
workout repertoire: lunges on a Swiss
ball; deadlifts with a row; bi-lateral
lunges and BOSU squat jumps.
Concentrate on some plyometric moves
too (explosive, jumping-style moves that
help to develop hip and leg power). A
good skiing plyometric move is the box-
jump (dont do if you have any joint prob-
lems, or arent used to training) and the
BOSU jump mentioned above. Dont for-
get your flexibility either: this will enable
your body to get used to the sudden
stretching movements a good
run will involve, and will
also prevent joints from
taking too much of a
hit concentrate
in particular on
calves, quads and
hamstrings.
IF YOU LEFT IT TILL THE
LAST MINUTE
Not a great deal can be
done if youve left it the
week before to train you
dont want to go hell for
leather and wind up with
lower body meltdown
before youve even checked
in. Do the desk prep quadri-
ceps exercise from above the
week before, and keep
stretching out all your lower
body muscles ensuring
theyre as flexible as possi-
ble before you get going.
Start slowly too; try not to
rush into any explosive
moments in particular.
Lastly, maybe book a mas-
sage on arrival as a precau-
tionary measure.
www.laurawilliamsonline.co.uk
The key to enjoying
your ski holiday is
preparation.
LOSING YOUR HAIR?
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www. wi mpol ec l i ni c. c om
EPISODE 43 A FRAZZLED START TO THE DAY
Get the most out of the
slopes. Our tness
columnist Laura
Williams tells Zoe
Strimpel how to do it
Limbering up for a brilliant ski
T
E
R
R
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S
T
R
I
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DEATH ROWDOGS
BBC1, 10.35PM
Officers from the West Midlands
Police Dangerous Dogs Unit try to
tackle the growing problem of attacks
by dangerous and illegal dogs.
SHAMELESS
CHANNEL4, 10PM
Micky suffers homophobic abuse
during a night out with the lads, while
Aidan falls in with a gang of older
Chatsworth boys.
BODY OF PROOF
CHANNEL5, 9PM
Megan conducts an autopsy on a
woman found murdered in a motel
room. Crime drama, starring Dana
Delany.
BBC1
SKY SPORTS 1
7pmRevista De La Liga 8pmLive
Copa Del Rey Football 10pmTest
Cricket 11pmFootballs Greatest
Managers 11.30pmFootball Asia
11.55pmLive Test Cricket
5.30am-6amLive Test Cricket
SKY SPORTS 2
7pmSports Unlimited 8pmTime
of Our Lives 9pmFootballs
Greatest 9.30pmFootballs
Greatest Managers 10pmPoker
12amSports Unlimited 1am
Golfing World 2amCopa Del Rey
Football 3.30amFootballs
Greatest 4amFootballs Greatest
Managers 4.30amSports
Unlimited 5.30am-6amLive Test
Cricket
SKY SPORTS 3
7pmBritish Basketball 9pmFIBA
Basketball 9.30pmKings of the
Snow10pmGolfing World 11pm
British Basketball 1amFIBA
Basketball 1.30am-3.30amPoker
BRITISH EUROSPORT
6.30pmLive Africa Cup of
Nations 9pmTennis: Australian
Open 11.10pmGT Academy: Road
to Dubai 11.30pmGame, Set and
Mats 12am-6.15amLive Tennis:
Australian Open
ESPN
7pmPress Pass 2012 7.30pm
ESPN Kicks: Serie A 7.45pmLive
Coppa Italia 9.45pmESPN Kicks:
Premier League 10pmSerie A
Review10.30pmSerie A Rivals
11.30pmPress Pass 2012 12am
World Series of Poker Europe
3amPlanet Speed 3.30am
Cycling 4amFIS Alpine Ski World
Cup Report 4.30amSerie A
Rivals 5.30am-6amSerie A
Review
SKY LIVING
7pmCriminal Minds 8pmThe
Biggest Loser 9pmUnforgettable
10pmCriminal Minds 11pmBones
12amCSI: Crime Scene
Investigation 1.50amMaury
2.40amMy Wife and Kids
3.30amBones 4.20amNothing
to Declare 5.10am-6amJerry
Springer
BBC THREE
7pmWinter Wipeout 8pmDont
Tell the Bride 9pmJunior Doctors:
Your Life in Their Hands 10pm
EastEnders 10.30pmLittle Britain
11pmFamily Guy 11.45pm
American Dad! 12.30amJunior
Doctors: Your Life in Their Hands
1.30amDont Tell the Bride
2.30amLittle Britain 3amTwo
Pints of Lager and a Packet of
Crisps 4am-5amHow Sex Works
E4
7pmHollyoaks 7.35pmHow I Met
Your Mother 8pmShipwrecked:
The Island 9pm90210 10pmThe
Cleveland Show11pmRude Tube
12amThe Big Bang Theory 1am
Scrubs 1.50amHow I Met Your
Mother 2.15amRules of
Engagement 2.35amGreek
3.20amWildfire 4.05am-6am
Switched
HISTORY
7pmMounted in Alaska 7.30pm
Pawn Stars 8pmAmerican
Pickers 9pmCash Cowboys 10pm
Pub Dig 11pmUFO Hunters 12am
Decoding the Past 1amPub Dig
2amCash Cowboys 3amClash of
the Gods 4amDeep Wreck
Mysteries 5am-6amAmerican
Pickers
DISCOVERY
7pmMythbusters: Whether lit
thermite explodes when it comes
into contact with ice. 8pmRory
McGraths Best of British
Engineering 9pmSwords: Life on
the Line 10pmSwamp Loggers
11pmDeadliest Catch 12am
Bear Grylls: Born Survivor 1am
Swords: Life on the Line 2am
Swamp Loggers 3amWheeler
Dealers 3.50amMythbusters
4.40amChris Barries Massive
Engines 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pmMystery
Diagnosis 10pmBaby ER 11pmI
Didnt Know I Was Pregnant
12amMystery Diagnosis 1am
Baby ER 2amI Didnt Know I Was
Pregnant 3amSupernanny US
4amA Baby Story 5am-6am
Bringing Home Baby
SKY1
7pmGot to Dance: Auditions 9pm
Got to Dance 9.30pmFILMMen
of Honor: Fact-based drama,
starring Cuba Gooding Jr. 2000.
11.55pm35mm12.25amDog the
Bounty Hunter 1.25amMy
Holiday Hostage Hell 2.20am
Fringe 3.15amRoad Wars 4.10am
Project Catwalk 5.05am-6am
Dont Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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B
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmMasterChef
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmCHOICE Death Row
Dogs
11.25pmFILMOpen Range. 2003.
1.35amWeatherview1.40amSign
Zone: The Manor Reborn 2.40am
Natures Miracle Babies 3.40am
MasterChef: The Professionals
4.45am-6amBBC News
6pmEggheads: Quiz show,
hosted by Jeremy Vine.
6.30pmGreat British Railway
Journeys
7pmEscape to the Country
7.30pmMatch of the Day Live:
Cardiff City v Crystal Palace
(Kick-off 7.45pm).
10pmRhod Gilberts Work
Experience
10.30pmNewsnight: Weather
11.20pmRoyal Institution
Christmas Lectures 2011
Meet Your Brain
12.20amBowls
1.20amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmFarewell Becky
8pmThe Exit List: Game show,
hosted by Matt Allwright.
9pmThe Biggest Loser
10pmITV News at Ten
10.30pmLondon News
10.35pmBenidorm
11.35pmHomes from Hell
2009: Property disasters
abroad.
12.30amThe Zone; ITV News
Headlines
3amCrossing Jordan
3.50am-5.30amITV Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pm4thought.tv 8pmThe
Fat Fighters 9pm15 Kids and
Counting 10pmCHOICE
Shameless 11.05pmDesperate
Housewives 12amRandom Acts
12.05amPoker 1.10amSailing:
Americas Cup Uncovered
1.35amKOTV Boxing 2.05am
Volleyball 3amGT Academy
3.25amThat Paralympic Show
3.55amParalympic Wheelchair
Rugby GB Cup 2011 4.50am
European Wheelchair Fencing
Championships 2011
5.15am-6.10amScrapheap
Challenge
6pmHome and Away
6.30pm5 News at 6.30
7pmPolice Interceptors: 5
News Update
8pmCowboy Builders: 5 News
at 9
9pmCHOICE Body of Proof
10pmCelebrity Big Brother
11pmCelebrity Big Brothers
Bit on the Side
12amCelebrity Wedding
Planner
1amSuperCasino 3.55am
HouseBusters 4.20amMichaelas
Wild Challenge 4.45amMichaelas
Wild Challenge 5.10amHouse
Doctor 5.35am-6amHouse Doctor
1 2 3 4 5
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17 18 19
20
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17 20 5
45
8 11
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16 21
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15 6 4
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28
7
11
38
22
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13
13
12
35
33
7
12
3
17
17
29
9
10
29
19
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
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WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Small round bread
which can open
into a pocket (4)
3 Disease of the skin (6)
6 Hyphen (4)
7 Country, capital
Lom (4)
8 Organised persecution
of an ethnic group (6)
9 Not denitely settling
something (10)
14 Stargazer (10)
17 Form a queue (4,2)
19 Rubbish receptacles (4)
20 Cab (4)
21 Ocean oor (6)
22 As a result (4)
DOWN
1 Regional dialect (6)
2 Love intensely (5)
3 Clairvoyance (inits) (3)
4 Cuts into pieces (5)
5 Large northern deer (5)
10 God of the underworld;
counterpart of the
Greek Pluto (3)
11 Articial language,
a simplication of
Esperanto (3)
12 Vigour (3)
13 Total disaster (6)
14 In existence (5)
15 Course (5)
16 Celestial path (5)
18 Fill out (3)
I
L
R
N
M E
O
V
I

4

E E H I R S U T E
R I D G E Y H
S I O N I A N S E A
A L T A R O I
T O Y O N D E R
Z E R O W S A S H
A S S E N T S E
S M R O T O R
M I N I A T U R E E
E U S C R U B
G R A M P U S N Y
3 8 3 8 1 3 1
2 7 4 9 2 3 1 5
7 9 4 8 6 9 8
1 3 2 5 4 1 2 3
3 9 7 6 4 8
7 3 1 6 8 4 2 5 9
9 6 7 6 8 3
2 1 8 9 7 5 6 8
2 4 1 2 1 4 5
3 4 7 2 1 5 9 7
9 5 5 8 9 8 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
EXTENSION
Lifestyle | TV&Games
T
HE CIRCUMSTANCES of
Tottenhams defeat at
Manchester City on Sunday will
have stung Harry Redknapp, but
he should seek significant consolation
in the fact his sides performance con-
firmed a shift in the balance of power
in north London.
To have retrieved a two-goal deficit
and come within a few centimetres of
beating the champions-elect under-
lined the faith Redknapps players
hold in his methods.
The contrast could not have been
starker just a few hours later when
Robin van Persie appeared to contest
Arsene Wengers decision to substi-
tute Alex Oxlade-Chamberlain it had
the feeling of a watershed moment,
perhaps in the Frenchmans reign, but
certainly in the rivalry between Spurs
and Arsenal.
The toxic atmosphere inside
Emirates Stadium intensified once
Danny Welbecks late goal secured vic-
tory for Manchester United and left
Arsenal staring at the prospect of a
year without Champions League foot-
ball and all that accompanies it.
A manager of Wengers standing
doesnt deserve to have his authority
or decision-making so openly ques-
tioned by his clubs fans or his skipper,
but you can certainly understand the
frustration felt on all sides.
Arsenals downfall has been in their
refusal to build from a position of
strength and has led them to a posi-
tion whereby they are now attempting
to sculpt a side around the likes of
Mikel Arteta and Per Mertesacker, who
would have been solid squad addi-
tions when they were challenging for
honours, but simply arent the sort of
players that win you titles.
FLAWED TRANSFER POLICY
Wenger is a magnificent coach who
has transformed Arsenals image, but
sometimes you have to rely on short-
term fixes to ensure the long-term
goal remains attainable.
A failure to invest last January saw
Arsenals challenge on four fronts
unravel in the space of three weeks
and certainly contributed to the
departures of Cesc Fabregas and
Samir Nasri, while already Wenger
appears to be fighting a losing battle
to maintain the services of Van Persie.
Redknapp, on the other hand, had
to fight to convince his chairman of
the merits of signing Scott Parker.
Daniel Levy argued that the addition
of a 30-year-old with no re-sale value
and a checkered injury record should
not be top of his clubs priority list.
You can understand his thinking
and Im sure were Arsenal consider-
ing taking a gamble on Parker they
would have harboured the same
reservations. But Redknapps judge-
ment and confidence in the short-
term merits of Parkers presence in
his sides midfield has emphatically
proved to be a punt worth taking.
It would be churlish to claim Spurs
are on the verge of usurping Arsenal
on the basis of signing Parker, but cer-
tainly it indicates their willingness to
invest in the here and now, while
Arsenal are stuck in a perpetual state
of building for the future.
The next six games could well
determine what that future holds for
Arsenal. A failure to pick up some-
thing near maximum points will see
them wave goodbye to a top four place
and their only world class player.
If thats the case, the Gunners will
start next season from an unfamiliar
position as north Londons second
class citizens.
Trevor Steven is a former Everton and
Glasgow Rangers winger who represented
England at the 1986 and 1990 World Cup.
Spurs ready
to overtake
rivals Arsenal
Sport 32 CITYA.M. 24 JANUARY 2012
SPURS
31 January: Wigan (home)
6 February: Liverpool (away)
11 February: Newcastle (home)
26 February: Arsenal (away)
4 March: Manchester United (home)
10 March: Everton (away)
ARSENAL
1 February: Bolton (away)
4 February: Blackburn (home)
11 February: Sunderland (away)
26 February: Tottenham (home)
3 March: Liverpool (away)
12 March: Newcastle (home)
* Fixtures subject to change due to both
teams involvement in the FA Cup
NEXT SIX PL GAMES | SPURS & ARSENAL
FOOTBALL COMMENT
TREVOR STEVEN
Laureus World Sports Awards, London, 6 February
L
ESS than two weeks to go and the count-
down is on to the 2012 Laureus World
Sports Awards. The most prestigious sports
awards in the world, the winners are chosen
by the 47 members of the Laureus World Sports
Academy, which includes British greats such as
Sir Ian Botham, Sir Bobby Charlton, Lord
Sebastian Coe and Baroness Tanni Grey-
Thompson.
This year there is a very strong British feel to
the Awards, nowhere more so than in the
Laureus Breakthrough of the Year category.
With the Olympic Games just six months away,
Mo Farah will be one of our best hopes for gold
after last year becoming the first Briton to win
the World Championships 5,000m in Daegu and
claiming 10,000m silver as well.
Also nominated is golfer Rory McIlroy, who
delighted the nation with his win in the US Open.
Who will win? Well find out at the Laureus
World Sports Awards at Central Hall,
Westminster, on Monday 6 February.
World champion 5,000m runner up against McIlroy and host of
other stars of 2011 for Laureus World Breakthrough Award
Can Farah go the
distance and cap
landmark year?
YOHAN BLAKE
(Jamaica) Athletics
At 21, he won the 100m gold
medal in the World
Championships in Daegu.
Blake also won gold as a
member of the Jamaican
4x100m relay team, in a
world record 37.04 seconds.
In September he ran the
second fastest 200m of all
time in 19.26 secs.
PETRA KVITOVA
(Czech Republic) Tennis
At 21, she beat Maria
Sharapova in straight sets to
win Wimbledon, her first ever
grand slam. The Czechs other
highlight came in October when
she won the WTA
Championships in Istanbul,
defeating Victoria Azarenka in
three sets. Left-hander Kvitova
is known for her powerful serve.
LI NA
(China) Tennis
In 2011, Li Na became Chinas
first winner of a grand slam
when she defeated Francesca
Schiavone to win the French
Open. Earlier she had reached
the final of the Australian Open
another first for a Chinese player
- beating world No1 Caroline
Wozniacki in the semi-final, but
losing in the final to Kim Clijsters.
T
H
E

N
O
M
I
N
E
E
S
MO FARAH
(United Kingdom) Athletics
Became the first British man to
win a World Championship gold
medal in the 5,000m, also
winning silver in the 10,000m.
Earlier in the year, he won
3,000m gold in the European
Indoor Championship. Was
named 2011 European Athlete
of the Year. Born in Somalia, he
moved to Britain aged eight.
OSCAR PISTORIUS
(South Africa) Athletics
Oscar Pistorius became the
first amputee to win a non-
disabled World Championship
track medal, as a member of
the South African silver medal
winning 4x400m relay team.
He also reached the semi-
finals of the individual 400m.
Born without fibulae, he runs
with carbon fibre blades.
RORY MCILROY
(United Kingdom) Golf
Rory McIlroy captured his first
Major title in 2011 when he
won the US Open by eight
shots. It was an emotional
victory for McIlroy, who had
blown a four-shot lead in the
Masters weeks earlier with a
final round 80. At 22, he
became the youngest US Open
winner since 1923.
FANCY rubbing shoulders with the very
biggest names from the world of sport at
next months glitzy ceremony in London? Of
course you do. Well youre in luck, because
City A.M. has a pair of tickets to the Laureus
World Sports Awards at Central Hall,
Westminster, on 6 February and the exclu-
sive aftershow party to give away to a
lucky reader. Just keep watching these
pages for full details of how to win this
money-cant-buy prize in the coming weeks.
WIN A PAIR OF TICKETS
Farah won 5,000m gold
in Daegu last year
Picture: ACTION IMAGES
Bale scored in Sundays
unfortunate 3-2 defeat at
Manchester City.
REIGNING champion Novak Djokovic
hailed his first major test of the year
after extinguishing a rousing come-
back from home favourite Lleyton
Hewitt to claim his place in the
Australian Open quarter-finals.
World No1 Djokovic lost his way
after racing into a two-set lead and,
having allowed faded star Hewitt to
claw one back, was forced to save
break points at 1-1 in the fourth
before prevailing 6-1, 6-3, 4-6, 6-3.
Success in an 18th consecutive
grand slam match swept the
Wimbledon and US Open champion
into a last-eight meeting with Spains
David Ferrer, and kept him on course
for a semi-final date with Britains
Andy Murray.
Yet he betrayed a rare vulnerability
at times as wild card Hewitt, roared
on by the Melbourne crowd, scented a
famous upset which the Serb put
down to a lack of big-match practise
in recent months.
I think its good, its just that small
part maybe 45 minutes, one hour
where I wasnt playing well and he
did. It happens, said Djokovic, who
enjoyed an extraordinary but punish-
ing 2011.
I just have to keep on going. Im
confident that physically its not
going to affect me too much. Im not
looking for excuses, but Im saying its
obviously the first match that Ive
been tested. It was against the player
that I expected to be tested. Lleyton
was playing in front of his crowd.
Obviously he loves competing against
the top guys on the big stage, and he
proved it again.
Djokovic had dropped just 10
games on his way to the last 16 and
maintained that pace early on against
Hewitt, who was unable to hold serve
until the fifth game of the second set.
The Australian, a former world No1
now languishing at 181 in the rank-
ings, redoubled his efforts to force a
fourth set but could not deny
Djokovic a meeting with fifth seed
Ferrer, who beat Frenchman Richard
Gasquet in straight sets.
On a day of shock performances,
Kei Nishikori upset sixth seed Jo-
Wilfried Tsonga in five sets to become
the first Japanese player in the last
eight for 80 years. He meets Britains
Andy Murray next.
Sport
Djokovic foils gutsy Hewitt
Mens Singles
N Djokovic [1] v D Ferrer
A Murray [4] v K Nishikori
JM Del Potro [11] v R Federer [3]
T Berdych [7] v R Nadal [2]
Womens Singles
C Wozniacki [1] v K Clijsters [11]
V Azarenka [3] v A Radwanska [8]
E Makarova v M Sharapova [4]
S Errani v P Kvitova [2]
Matches today and tomorrow
DRAW | QUARTER-FINALS
SPORT | IN BRIEF
Lampard to miss QPR cup clash
FOOTBALL: Chelsea will be without
Frank Lampard for Saturdays eagerly
anticipated FA Cup fourth round tie
against west London rivals QPR at
Loftus Road. Lampard was taken off
with a calf injury at half time during
Saturdays 0-0 draw at Norwich, but the
midfielder is expected to return in time
for the trip to Swansea on 31 January.
Raikkonen back in the saddle
FORMULA ONE: Former world champi-
on Kimi Raikkonen impressed on his first
day of testing for Lotus after a two-year
absence from the sport, according to the
teams trackside operations director
Alan Permane. From the first run he
was pretty much there, he said of the
Finn. The 32-year-old was driving a two-
year-old Renault R30 at Valencias
Ricardo Tormo circuit in Spain and F1s
testing restrictions mean he will have to
wait until next month to race the teams
car for the coming season. Raikkonen
added: It was nice to get back in the
car. Its a few years since I last drove.
Brown a doubt for Calcutta Cup
RUGBY UNION: Saracens flanker Kelly
Brown is a major doubt for Scotlands
Six Nations opener against England at
Murrayfield next Saturday. Brown suf-
fered a leg injury in Sundays Heineken
Cup win over Benetton Treviso.
World No1 survives
scare against local
hero to book place
in quarter-nals
Unseeded Makarova dumps Serena
FIVE-TIME champion Serena Williams blamed a litany of
mistakes after crashing out of the Australian Open to
unseeded Russian Ekaterina Makarova.
The American was guilty of seven double faults and 37
unforced errors as Makarova claimed the most notable
scalp of her career 6-2, 6-3.
She played really well, she went for broke on a lot of
shots, said Williams, a 13-time grand slam winner. I made
37 errors and that pretty much told the story of the
match.
Williams, who struggled with an ankle ailment before
the tournament, admitted to being short of full fitness but
insisted it was not the cause of her defeat to the world
No56. She added: I never blame any injury I have because
I feel like she played really well and deserved the win."
Makarova, who will meet compatriot and fourth seed
Maria Sharapova in the quarter-finals, said: I won against
Serena thats amazing. I'm surprised but I was feeling so
good and so focused.
Sharapova, chasing her first grand slam since her 2008
Melbourne triumph, came from behind to beat Germanys
Sabine Lisicki 3-6, 6-2, 6-3.
Second seed Petra Kvitova advanced to the last eight
with a 6-2, 7-6 (7-2) victory over former Wimbledon cham-
pion Ana Ivanovic. Kvitova will next face Italys Sara Errani,
who beat Chinas Zheng Jie.
Results
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email sport@cityam.com
Djokovic completed an 18th
straight grand slam win
with victory over Hewitt
Sport
34
BRITAINS Andy Murray described his
49-minute win over Mikhail
Kukushkin as boring and point-
less after taking his place in the
Australian Open quarter-finals.
The fourth seed was leading 6-1, 6-1,
1-0 when his Kazakh opponent,
ranked 92 in the world, was forced to
retire with a hip injury. It was bor-
ing, said Murray. There was nothing
happening. I didnt have to do any-
thing, just hit the ball in court and he
wasnt running. He was making mis-
takes the first or second ball of the
rally. That was it. It was pointless.
The easiest of victories means
Murray will meet Japans Kei
Nishikori in the last eight tomorrow
and remains on course for a semi-
final with world No1 and defending
champion Novak Djokovic.
Murray blasts boring win
as Brit bags last-eight slot
CRYSTAL PALACE manager Dougie
Freedman has risked a Cardiff back-
lash by depicting the Welsh side as
nearly men ahead of tonights
Carling Cup semi final second leg.
Under previous manager Dave
Jones, Cardiff wasted several promis-
ing positions in the league to miss
out on automatic promotion to the
Premier League and have failed in the
play-offs in each of the last two sea-
sons.
Now under the guidance of Malky
MacKay the Bluebirds are again hand-
ily placed in the Championship, but
their path to a third Wembley visit in
four years has been complicated by
Antony Gardners first leg goal which
has put Palace within touching dis-
tance of reaching their first cup final
of any sort in 22 years.
I think they are under more pres-
sure to succeed, said Freedman. In
the play-off games they have always
been a nearly team, nearly getting
there. We are just enjoying ourselves
and nobody thought wed get here.
BY FRANK DALLERES
TENNIS
BY JAMES GOLDMAN
FOOTBALL
Palace boss Freedman piles the

pressure on Cardiffs bottlers
TOTTENHAM manager Harry
Redknapp received bungs totalling
almost 200,000 into an offshore
account in the name of his pet dog
and deliberately dodged paying tax
on the sums, a court heard yesterday.
Redknapp, who is widely tipped to
succeed Fabio Capello as England
head coach in the summer, appeared
in the dock at Southwark Crown
Court yesterday for the first day of a
high-profile trial expected to be con-
cluded next week.
The 64-year-old was accused of
accepting bonus payments of 93,100
and 96,300 relating to his time in
charge of Portsmouth from the clubs
then-chairman Milan Mandaric, who
is also accused. Both men deny the
charges.
The sums were paid into an
account opened by Redknapp in
Monaco under the name Rosie 47,
an amalgamation of his dogs name
and the year of his birth, the prosecu-
tion alleged.
These payments were a bung or
offshore bonus that the parties had
absolutely no intention of paying
taxes for, John Black QC, for the pros-
ecution, said.
Mr Black added that Monaco
accounts were known for obscuring
money trails and that both parties
must have known they were avoid-
ing obligatory income tax and
National Insurance contributions.
Redknapp, sitting behind bullet-
proof glass in the courtroom, was
supported at the trial by his son
Jamie, a former England midfielder
turned media pundit, and executives
from Tottenham.
A packed courtroom heard that
Mandaric made the first of two pay-
ments to Redknapps Rosie 47
account in 2002 and the second on 21
April 2004. In 2008 Redknapp
instructed his Monaco bank to close
the account and transfer his $207,000
balance to his London HSBC account,
Mr Black said.
Redknapp did not disclose the
Rosie 47 accounts existence until
2006, when he declared it to the
Stevens Inquiry into corruption in
English football, the prosecution
added. He did not mention it to HM
Revenue and Customs when, between
2004 and 2006, they investigated a
300,000 payment the former West
Ham manager received in relation to
the transfer of Rio Ferdinand from
the Hammers to Leeds in November
2000, it was claimed.
Redknapp earned bonuses equiva-
lent to five per cent of profit on play-
er transfers while Portsmouth
manager, the court was told. In his
previous role as the clubs director of
football, he was entitled to 10 per
cent, Mr Black added.
The trial continues.
BY FRANK DALLERES
FOOTBALL
Redknapp used
account in dogs
name for bungs,
court told
l Trial begins into claims 64-year-old avoided tax
l Jury told Spurs boss had secret Monaco account
l Redknapp and Mandaric deny charges
Balotelli
hit with
FA charge
MANCHESTER CITY striker
Mario Balotelli could miss
tomorrows Carling Cup semi-
final second leg against
Liverpool and three crucial
Premier League games after he
was charged with violent con-
duct by the Football Association
for appearing to stamp on
Tottenhams Scott Parker.
The Italian striker, who won
and converted the decisive
penalty in Sundays 3-2 win over
Spurs just eight minutes after
committing the alleged offence
which referee Howard Webb
failed to spot at the time, has
until tomorrow evening to
respond to the charge.
Should Balotelli decide to
appeal he will be available for
tomorrows clash at Anfield, in
which City will be looking to
overturn a 1-0 first leg deficit,
with a hearing likely to take
place later this week.
An acceptance of the charge,
however, will see the 21-year-old
miss out tomorrow and will pre-
vent him from playing in league
matches against Everton,
Fulham and Aston Villa.
Meanwhile, Spurs striker
Jermain Defoe, who scored and
then came within a whisker of
winning Sundays epic Premier
League summit meeting, insists
his side remain in the title
frame despite the agonising
nature of their defeat.
We will keep going. We have
got some big games coming
up games that we can get
points from. Well be fine, said
Defoe, whose side now trail
league leaders City by eight
points.
There are not many teams
that can come to Manchester
City and get points or perform
like we did.
It was a tough game but we
really performed, so there are a
lot of positives we can take.
FOOTBALL
35
MAKAROVA AND OUT
SERENA DUMPED OUT OF AUSTRALIAN
OPEN BY UNSEEDED RUSSIAN: PAGE 33
MONTE-CARLO RALLY 2012.
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You could also benefit from the expertise MICHELIN has derived from motorsport
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Experience the performance at www.michelin.com/experience-the-performance
ENGLAND batsman Alastair Cook
insists he and fellow opener Andrew
Strauss should be trusted to create a
platform from which their side can
strike back against Pakistan.
England trail the three-match
series 1-0 after last weeks 10-wicket
defeat in Dubai which featured two
abject batting collapses. The pitch at
the Sheikh Zyed Cricket Stadium
heavily favours the batsmen and
should offer Cook and Strauss the
chance to ensure England gain a
foothold in the second Test which
starts tomorrow.
Its our job to lay the platform.
We didnt do that in Dubai, Cook
said. We can put it right. We made
some poor decisions as a unit. To
score runs you have to make good
decisions over a long period.
Cook promises to lead
fightback from the front
BY JAMES GOLDMAN
CRICKET
ARSENAL winger Alex Oxlade-

Chamberlain hopes his eye-catching
performance against Manchester
United on Sunday will be enough to
convince Arsene Wenger he is worthy
of a regular first team place.
Wengers decision to withdraw the
versatile 18-year-old attacker after 73
encouraging minutes drew stinging
criticism from fans and appeared to
be met with equal astonishment from
club captain Robin van Persie.
But Oxlade-Chamberlain, signed
from Southampton in the summer for
a fee that could eventually rise to
15m, is confident the Frenchman
has confidence in his abilities despite
having his first Premier League start
cut short.
I was happy to first get a start, said
Oxlade-Chamberlain. That is a posi-
tive for me to take away, having the
bosss trust. Ive got to just make sure
that I repay that with my performanc-
es and just working hard in training
and when Im on the pitch. Ive got to
make sure I keep my place now.
Im ready to play every week, vows
Arsenal starlet Oxlade-Chamberlain
BY JAMES GOLDMAN
FOOTBALL
REDKNAPP TRIAL: NEED TO KNOW

Q.
WHAT IS HARRY REDKNAPP
CHARGED WITH?
A.
Redknapp is accused of conceal-
ing two payments, of $145,000
(93,100) and $150,000 (96,300),
from the taxman to avoid income
tax and National Insurance contri-
butions. The payments are alleged
to have been made into a Monaco
bank account between April 2002
and April 2004 and to relate to
Redknapps time in charge of
Portsmouth. He denies the charges.
Q.
WHO ELSE IS INVOLVED IN THE
CASE?
A.
Milan Mandaric, who was
Portsmouth chairman at the
time and is alleged to have made
the payments, is also accused of two
counts of cheating the public rev-
enue. He denies the charges. Serbia-
born American citizen Mandaric is
now chairman of Sheffield
Wednesday.
Q.
HOW LONG WILL THE TRIAL
LAST?
A.
The trial is expected to last up
to two weeks, with hearings
every day at Southwark Crown
Court starting at 10am and finish-
ing at 4:30pm.
Q.
IS REDKNAPP STILL ABLE TO
MANAGE TOTTENHAM?
A.
Redknapp will attend and is
required to arrive 45 minutes
before the jury and leave 45 min-
utes after they depart, so in the
short term he will be
unable to take training
sessions for the duration.
His assistants Joe Jordan and Kevin
Bond will take charge of the first
team in the interim.
Q.
WHAT WILL IT MEAN FOR THE
ENGLAND JOB?
A.
In the longer term, a guilty ver-
dict may jeopardise his
Tottenham position and his status
as favourite to replace Fabio Capello
as England manager this summer.
Sunderland boss Martin ONeill has
been mooted as an alternative, but
there is a chronic shortage of suc-
cessful home-grown candidates.
Q.
COULD REDKNAPP BE SENT TO
JAIL?
A.
If found guilty, Redknapp could
be fined or given a custodial
sentence. The decision will be made
by the judge, Anthony Leonard QC,
who in November lifted a ban on
reporting details of the proceedings.
Q.
WHO IS ON THE 12-PERSON
JURY?
A.
Eight men and four women
were yesterday sworn in as
jurors, having been warned by
Judge Leonard that they must
declare any allegiance for or against
the defendants or their clubs.
Leave all prejudice and favour
behind, he told them. They were
also told not to read media coverage
of the trial.
Q A
&
ON THE BENCH | THE LEGAL TEAMS
MILAN MANDARIC
Mandaric is represented by
Lord Ken MacDonald QC (left),
the decorated former Director
of Public Prosecutions, now of
Matrix Chambers
THE PROSECUTION
John Black QC, an experienced specialist in
criminal cases of 18 Red Lion Court Chambers,
is acting for the prosecution
HARRY REDKNAPP
Redknapp is represented by the
highly regarded John Kelsey-Fry
QC (right), of the Citys Cloth Fair
Chambers, who has previously
acted for footballer Steven
Gerrard and jockey Kieren Fallon

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