FTSE 100 5,790.72 +109.11 DOW 12,716.46 +83.55 NASDAQ 2,848.27 +34.43 /$ 1.58 unc / 1.20 unc /$ 1.

/ 1.20 unc /$ 1.32 +0.01

FACEBOOK has taken the first official
step to becoming a publicly traded
company, filing papers yesterday that
outline plans to raise $5bn in what
could be the biggest float this year.
Silicon Valleys most anticipated
flotation will see Facebook represent-
ed by ticker symbol FB, although the
company did not specify whether it
would list on Nasdaq or NYSE.
Morgan Stanley will underwrite the
offering alongside JP Morgan and
Goldman Sachs, with assistance from
BofA Merrill Lynch, Barclays Capital
and Allen & Co.
The filing with the Securities and
Exchange Commission has given the
world its first authorised peek at
Facebooks finances. It revealed that
the social networking site generated
revenues of $3.71bn (2.34bn) in 2011
88 per cent higher than 2010s $1.97bn
revenue and a staggering growth on
the $777m reaped in 2009.
Mark Zuckerbergs empire,
launched from his Harvard bedroom
in 2004, pocketed $1bn in net income
last year 65 per cent more than the
$606m earned in 2010.
The college dropout owns 28.4 per
cent of the global networking phe-
nomenon which, if Facebooks value
reaches the $100bn put forward by
www.cityam.com Issue 1,562 Thursday 2 February 2012 FREE
SIR FRED
BACKLASH
EX-CHANCELLOR
DARLING LEADS
PROTESTS P3
BUSINESS WITH PERSONALITY
analysts, would place Zuckerberg com-
fortably among the top ten richest bil-
lionaires in the world.
Secondary trading site SharesPost
yesterday priced the company at
$89.4bn, valuing its creator at $23.5bn
on paper. He earned a basic salary of
$483,333 last year and was awarded
$220,500 as bonus. The firm spent a
further $783,529 on Zuckerberg,
which included a security programme
and the use of a private jet.
However, starting from January
2013, the 27-year old will reduce his
salary to just $1 a year.
Chief operating officer Sheryl
Sandberg, formerly of Google, pocket-
ed 381,966 last year, of which salary
accounted for $295,833.
The blue-branded website boasts
845m monthly active users, of which
Certified Distribution
28/11/11 till 01/01/12 is 92,879
almost half 483m people around the
world log in every day.
This accounts for the heavy extent to
which Facebook relies on advertising,
which brought in 98 per cent of rev-
enues last year, up from 95 per cent
the year before and 85 per cent in 2010.
Facebook admitted 12 per cent of its
revenues came through its deal with
games group Zynga, stating this as a
significant risk to investors should the
social gaming company migrate to
competitors, fail to maintain good
relations or no longer entice users.
Other risks outlined by Facebook
include a loss of advertisers, a declin-
ing rate of growth, susceptibility to
legal action and the prospect of losing
Mark Zuckerberg.
Facebook will run a dual class stock,
with early investors having ten-to-one
voting power over the shares to be sold
publicly, ensuring Zuckerberg remains
in control.
The company, which has just moved
to new Menlo Park address 1 Hacker
Way, will follow in Apples footsteps
and not pay dividends.
Zuckerberg said in the filing:
Facebook was not originally created
to be a company. It was built to accom-
plish a social mission to make the
world more open and connected.
We dont build services to make
money; we make money to build bet-
ter services. MORE: P6-7
THE RISE OF THE THINKING
MANS COMPUTER GAME
WE PICK FIVE OF THE BEST P24
FACEBOOK BY NUMBERS
845m
monthly active users
worldwide
$5bn
to be raised in the float
BY LAUREN DAVIDSON
TECHNOLOGY

$3.7bn
revenues in 2011
3,200
employees
$1
Mark Zuckerbergs
salary next year
$1bn
net income in 2011
$23.5bn
Mark Zuckerbergs
potential wealth
$100bn
Estimated maximum
market cap
FACEBOOK UNVEILS
FLOAT OF THE YEAR
News
2 CITYA.M. 2 FEBRUARY 2012
Hoare Govett
sold at a cost
BRITISH taxpayers will still have to
fork out for the salaries of some Hoare
Govett staff after Royal Bank of
Scotland sold the legendary stockbro-
ker for just 1.
RBS last night agreed to offload
Hoare Govett to US investment bank
Jefferies and City A.M. understands the
state-owned lender will pay some staff
costs after the deal has been complet-
ed, which is likely to be in March.
The takeover will see around 50 staff
join Jefferies London office including
current Hoare Govett managing direc-
tors. The business will be re-branded as
Jefferies Hoare Govett.
The origins of the broker go back
more than 100 years. It lost some of its
brand value, however, after being
absorbed into ABN Amro. RBS
acquired Hoare Govett in its otherwise
disastrous 2007 takeover of the bank.
The latest deal comes three months
after Jefferies expanded its European
fixed income team and it will pick up
50 retained clients of Hoare Govett.
The British broker does not reveal cur-
rent clients but in recent years it has
worked with BAE Systems,
GlaxoSmithKline and G4S.
Jefferies International president
David Weaver said Hoare Govett is one
of the most distinguished franchises
in corporate broking. RBS did not
comment on the terms of the deal.
BY PETER EDWARDS
M&A

CALLS MOUNT TO CUT TRINITY

MIRROR CHIEFS PAY
Trinity Mirror is facing renewed pres-
sure to rein in the pay of its chief
executive Sly Bailey from some of the
biggest shareholders in the media
group. The shareholders will set out
their mounting unhappiness over the
pay when Trinity Mirrors incoming
chairman David Grigson holds a
series of meetings with key investors.
BALLS SEES GAPING HOLE IN CITY BILL
The bill to revamp City regulation
includes a gaping hole that could
prevent important warnings from
reaching the chancellor of the
exchequer, Ed Balls, Labours shadow
chancellor, has warned. In an inter-
view with the Financial Times, Mr
Balls criticised the extensive powers
the bill would grant to the governor
of the Bank of England, Sir Mervyn
King, saying the new structure could
stifle dissenting voices in the run-up
to another crisis.
PAY DEALS IN PRIVATE SECTOR RISE
Private sector pay settlements in
recent weeks have been running
above last years levels, bringing work-
ers some relief from the squeeze on
incomes, according to Incomes Data
Services, the pay analyst. IDS said
almost two-thirds of 30 awards
recorded this year were worth at least
three per cent compared with a medi-
an rise of 2.5 per cent in 2011.
RELIANCE LAUNCHES $2BN BUYBACK
TO REASSURE INVESTORS
Reliance Industries launched the
largest share buy-back in Indian cor-
porate history yesterday, in a move
designed to stem investor concerns
about sagging performance and way-
ward management focus. Reliance
shares rose by about two per cent as
the $2bn buy-back began, although
the group declined to comment on
the level of uptake.
FITNESS CHAIN SENDS BOARD PACKING
Almost the entire board of Fitness
First has been axed by its owner in an
attempt to stem potential losses of
hundreds of millions of pounds on its
investment in the worlds biggest fit-
ness club operator. BC Partnershas
sacked the fitness chains chief execu-
tive, finance director and UK manag-
ing director and is replacing the
chairman and one of the non-execu-
tive directors.
MILITARY WEAPONRY WONT HAVE TO
BE MADE IN BRITAIN
Fighter jets, warships and other
weaponry may no longer have to be
built from scratch by British industry
to protect national security. The
Ministry of Defence published a
White Paper yesterday that eliminat-
ed nearly all sovereign capabilities
from its future industrial require-
ments.
JOHN CLARE WINS COMET SUPPLIERS'
SUPPORT AHEAD OF OPCAPITA'S BUY
Veteran retailer John Clare has
secured the support of Comets major
suppliers just hours before the busi-
ness is due to be sold to private equity.
The former Dixons chief executive has
met with the retailers key suppliers
in recent days, after trade credit insur-
ers placed their coverage of Comet
under review.
DAVID MILIBAND: MY BROTHER AND A
RETURN TO OLD LABOUR
David Miliband has broken his silence
to warn that Labour risks moving too
far to the Left under his brothers
leadership and is in danger of alienat-
ing business. In an article in the New
Statesman magazine, Mr Miliband
urges the party to avoid returning to
Old Labour thinking and not to be
overly critical of Tony Blairs achieve-
ments in government.
PFIZER RECALLS BIRTH-CONTROL PILLS
Drug maker Pfizer recalled about a
million packs of birth-control pills
that werent packaged correctly,
which raised the risk of unplanned
pregnancies among women who
relied on the pills. Pulled from shelves
were Lo/Ovral-28 pills and their
Norgestrel generic versions, which
doctors have been prescribing for years
to tens of thousands of women.
GLOBAL SHIPPING PRICES FACE MORE
CHOPPY WATERS
Freight rates hit a record low yester-
day on weak demand for iron ore,
poor weather conditions in mining
regions and a glut of shipping capaci-
ty. The Baltic Dry Index, a composite
of commodity shipping costs around
the world, fell for a 32nd consecutive
session to 662. The previous low, of
663, came in December 2008, during
the depths of the credit crunch.
WHAT THE OTHER PAPERS SAY THIS MORNING
Britain is now an anti-business nation
YES, this government is anti-business.
This is the first time since 1994, when
Tony Blair took over the Labour party,
that both government and opposition
are united in their relentless attacks
on corporate Britain, money-making
and the City. The difference in those
days and starting in 1979 was that
the Tories were in power, and that they
were staunch supporters of free enter-
prise, rewards for success and low
taxes. Partly because of the Lib Dems
and partly because of their own intel-
lectual incoherence, lack of belief in
individual liberty and limited interest
in economics, the Tories are now more
concerned at pandering to populism
or outflanking the Labour party from
the left, rather than imposing an alter-
native, pro-freedom and capitalist nar-
rative. This is the first time since Sir
Edward Heaths useless Tory govern-
ment of the 1970s that no major polit-
ical party in Britain is advocating a
truly freer market.
No wonder, therefore, that one sen-
ior wealth manager told us earlier this
week that the political climate is now
the worst it has been for the City and
private business more generally since
Harold Wilsons socialist government
of 1974-76. This is an exaggeration:
thanks to globalisation, and the fact
that so much of the 1980s-1990s
reformist agenda remains entrenched
in policy and culture, there is a big dif-
ference in what the political classes are
doing and the actual business climate.
But the direction of travel isnt good.
No society has ever done well or cre-
ated jobs and incomes, including for
its most vulnerable members, by bash-
ing business, crippling the most suc-
cessful sectors of its economy or wag-
ing war on wealth. It is unfortunate,
however, that it is only now that main-
stream commentators are starting to
realise that Britain has become anti-
business and they have noticed for
the wrong reason. Some in the busi-
ness community have lashed out over
the decision to strip Fred Goodwin of
his knighthood. As to the commentari-
at, suddenly even usually anti-business
advocates sound scandalised about the
ex-RBS bosss treatment (it was strange
to see so many banker-bashers and ped-
dlers of hysterical anti-City sentiment,
who have done so much to turn the
public against all CEOs and all
bankers, including the vast majority
who have done nothing wrong, sud-
denly start defending Goodwin, one
who actually deserves opprobrium).
But this was the wrong issue to get
upset about. Supporters of capitalism
and rewards for success shouldnt
defend someone who is being
penalised for failure. Goodwin was
knighted for services to banking that
was untenable. It isnt fair that he was
singled out, and its vital the lynch
mob be contained but sometimes,
partial justice is better than nothing.
Goodwins deknighting is not what
is destroying the UKs reputation.
What is doing that is the war on the
City (rather than sensible reform); con-
stant attacks on success; an absurd
belief that fixed pay is a better system
than variable pay and that politicians
can determine what a fair wage is;
the governments failure to deregulate
labour markets; high income and
other taxes; an energy policy which is
killing manufacturing; the tax raid on
the North Sea; an inefficient and bloat-
ed public sector; inadequate airports; a
gargantuan budget deficit and exces-
sive private and public debt; an inade-
quate education system I could go
on. Forget Goodwins deserved
deknighting these are the real fail-
ings that are debilitating the UK.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
EU REGULATORS have blocked the
$7.4bn (4.7bn) deal to merge
exchange operators Deutsche Boerse
and NYSE Euronext, saying the com-
bined firm would have killed compe-
tition in the European futures
market.
The two companies are now set to
abandon the plan, which would have
created the worlds biggest stock
exchange.
Neither firm was willing to placate
the EU regulator by disposing of its
European futures business, causing
the deal to be blocked. The combined
firm would have handled over 95 per
cent of such trades.
Deutsche Boerse said it was a
black day for Europe and that in
the future the continent would strug-
gle to compete in global financial
markets.
The deal was first unveiled in
February 2011 and had been
approved in the US.
BY JAMES WATERSON
CAPITAL MARKETS

EU blocks bourse merger

MORE than 70 people died as football
supporters wielding makeshift
weapons invaded the pitch and
caused a stampede following a match
in Port Said, Egypt, last night.
Hundreds more suffered injury
when fans of Masry rioted, chasing
players and fans from bitter rivals Al-
Ahly, after their unexpected win over
the countrys top team.
It is feared the death toll will rise
for what the Egyptian government
called its worst football-related disas-
ter. Television footage showed sup-
porters throwing stones and
brandishing sticks, while parts of the
stadium were set on fire.
Riot police who tried to protect the
players were also attacked and over-
whelmed. Some of the dead were
thought to be security officers.
Dozens die as
riots erupt at
Egyptian match
CEO Duncan L Niederauer failed to merge NYSE Euronext with Deutsche Boerse
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
Printed by Newsfax International,
BeamReach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
David Weaver talked
up legendary broker
Hoare Govett, after his
firm Jefferies snapped
it up for just 1.
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
Email: news@cityam.com www.cityam.com
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
BY FRANK DALLERES
WORLD NEWS

SENIOR politicians and City heavy-

weights including Alistair Darling and
Terry Smith yesterday led the backlash
against the decision to strip of Fred
Goodwin of his knighthood.
Darling, the former Labour chan-
cellor, said it was tawdry for the
government to target Goodwin, and
asked: If its right to annul his
knighthood what about the hon-
ours of others who were
involved in RBS and HBOS?
Meanwhile Smith, a vet-
eran investor who now runs
Tullett Prebon, told the BBC
the move was deplorable.
Smith also said the honorary
knighthood awarded in 2002
to Alan Greenspan, then
the chairman of the
US Federal Reserve,
should be called
into question.
Lord Jones, a
former CBI
head who briefly served in Gordon
Browns government, said there is a
whiff of the lynch mob on the village
green about this.
Goodwin (pictured) joined the
ranks of Robert Mugabe and jailed
jockey Lester Piggot when he lost his
honour on Tuesday, and MPs have
suggested other the Forfeiture
Committee should look at other for-
mer bank bosses, such as Sir Tom
McKillop, Lord Stevenson, and Sir
Victor Blank, the former chair-
men of RBS, HBOS and Lloyds
respectively.
Conservative Party deputy
chairman Michael Fallon
said who knows what will
follow from an FSA report
into the ill-fated Lloyds-
HB OS me r g e r .
Cabinet Office
sources said,
however, that
Goodwins
case was
e xc e p-
tional.
Protests over
downgrade of
Fred Goodwin
SHARES in hedge fund administrator
GlobeOp leapt by more than a fifth
yesterday after it agreed its 508m sale
to US private equity house TPG Capital.
The stock closed up 21.27 per cent at
430.5p after TPG set out to build a pres-
ence in the market serving the $2 tril-
lion (1.26 trillion) hedge fund sector.
The Texas firm could make more
deals in the sector, sources said, while
it wants to grow GlobeOp organically.
TPG beat Advent International to
the deal. It is offering 435p per share in
cash for London and New York-based
GlobeOp, which administers $173bn in
client assets.
The deal marks a premium of nearly
50 per cent to GlobeOps 5 January
share price, just before it announced it
was in talks with TPG.
GlobeOp chief executive Hans
Hufschmid and his team will continue
to run the firm and will reinvest 70 per
cent of their proceeds from the sale.
A series of London advisers worked
on the deal, with Barry Weir and
James Thomlinson from JP Morgan
Cazenove advising TPG, and Edward
Banks from Evercore Partners advising
GlobeOp, whose corporate brokers are
Bank of America Merrill Lynch and
Espirito Santo Investment Bank.
TPGs lawyers were Linklaters, led by
private equity partner Carlton Evans.
TPG triumphs
in 500m fight
for GlobeOp
BY PETER EDWARDS
BANKING

M&A

News
3 CITYA.M. 2 FEBRUARY 2012
CHARGES against former Goldman
Sachs director Rajat Gupta have
been expanded by US prosecutors,
who have doubled to four the num-
ber of illicit tips Gupta allegedly
passed to hedge-fund manager Raj
Rajaratnam.
They also increased the length of
Guptas illegal dealings, claiming
they began in March 2007 rather
than the previously stated 2008.
This could lengthen Guptas sen-
tence if he is found guilty.
Originally charged in October for
conspiracy and fraud regarding
insider information he gained as a
director of Goldman Sachs and
Procter & Gamble, prosecutors are
now also accusing Gupta of tipping
off Rajaratnam ahead of Goldmans
2007 first quarter earnings.
Rajaratnam, who co-founded
Galleon Group, was sentenced last
May to 11 years in jail on evidence
from wiretap recordings.
Guptas lawyer Gary Naftalis
called the charges totally baseless,
adding: The newly added charges
like the ones brought last year are
not based on any direct evidence,
but rely on supposed circumstantial
evidence.
CRIME

Further counts of Rajat Guptas illicit trading have been put forward Picture: GETTY
Prosecutors up charges
against Goldmans Gupta
News
4 CITYA.M. 2 FEBRUARY 2012
THE PRIVATE equity house behind
Japanese restaurant chain Wagamama
and payments network Payzone has
pulled a 850m (706.5m) fundraising
as global market turmoil shows little
sign of easing.
Duke Street now wants to raise cash
for every one or two deals it carries
out, although it is set to receive pay-
ments to cover operational costs as
well as a performance incentive.
It shelved its seventh fund in what
management regard as a practical
move given the amount of time need-
ed to travel to negotiate with global
investors. Duke Street has invested 90
per cent of its sixth fund, which was
worth 963m.
The move underlines the problems
facing mid-market firms as investors
sit on their cash despite a slight
improvement in market stability.
Private equity firms raised $263bn
in 2011, slightly less than they gath-
ered in 2010, according to data firm
Preqin, and a far cry from the height
of the buyouts boom, when they
pulled in around $600bn a year.
Duke Street, which is focussed on
Britain and France, may return to the
market with a traditional fundraising
but has not set a date.
The firm has previously held stakes
in Gala Bingo and DIY chain Focus. It
bought Wagamama from Lion Capital
in a 215m deal last year.
Nobody from Duke Street was avail-
able for interview yesterday.
Duke Street shelves plan
for 850m fundraising
PRIVATE EQUITY

TRUETT Tate, the widely respected

head of wholesale at Lloyds, will
leave his job by the end of the
month, the bank confirmed yester-
day as part of a management over-
haul.
The shake-up will see the number
of executives who report to chief
executive Antnio Horta-Osrio cut
from 13 to five in an attempt to
reduce his workload. The CEO had to
take two months sick leave last year
due to insomnia.
Julian Horn-Smith, a non-executive
director, is also quitting the bank,
and will be replaced by Sara Weller,
former managing director of Argos.
Tates departure clears out all of
the most senior executives in charge
before Horta-Osrios arrival at the
bank.
One Lloyds insider expressed dis-
may at the move. You hear Antnio
say we need to be the best bank for
customers and yet here were losing
the director in charge of customer
relations. And you hear him say the
bank needs to be a force for good and
yet were losing the lead proponent
for many of the social and cultural
aspects for the bank.
Tate has forged strong links
between the bank and micro-finance
charity Opportunity International.
However, a spokesman for Lloyds
strongly refuted the claim that his
leaving would affect either area,
pointing out that both customer rela-
tions and corporate social responsi-
bility have formal chiefs in charge.
Tate is also well-known in banking
circles outside Lloyds and is a board
member of AFME (Association for
Financial Markets in Europe). AFME
chief executive Simon Lewis called
Tate a positive and supportive mem-
ber of the board.
Lloyds shakes
up exec board
BY JULIET SAMUEL & DAVID HELLIER
BANKING

TOBY Clark, one of the key advisers on

the aborted 5.2bn takeover of the
services group ISS by G4S, has left
Deutsche Bank, the bank that led the
advice on the deal.
City bankers say they became aware
of his departure from Deutsche earlier
this week when his email account was
closed down.
Friends say that Clark, who was at
Deutsche for 18 years, was considering
what he might do next. Deutsche,
which worked alongside RBS Hoare
Govett and Greenhill on the deal,
declined to comment yesterday.
However, it is understood that his exit
is part of a programme, announced
last October, to take 500 people out of
its investment bank globally as a con-
sequence of the downturn in the mar-
kets.
There is no doubt that the failure of
the G4S bid would have been a disap-
pointment for Clark. The advisers
were criticised for being initially too
positive about investor feedback after
they first put the deal to institutions.
The failure of the deal has led to G4S
putting the corporate broking man-
date up to tender, with up to 10 banks
fighting for the business. Deutsche,
which has won more FTSE 100 broker-
ships than any other firm in the last
two years, has decided not to re-pitch.
Deutsche loses its
key G4S adviser
CAPITAL MARKETS

SEVERAL former Credit Suisse

traders manipulated the books on
mortgage-backed securities when the
US real estate market slumped in
2007 and 2008, a former London-
based trader at the investment bank
admitted in court yesterday.
The former trader, David Higgs,
pleaded guilty in US District Court in
New York to a criminal charge of con-
spiracy to commit falsification of
books and to commit wire fraud. He
is cooperating in a US government
investigation on the writedowns of
subprime mortgage derivatives at the
height of the financial crisis.
The investigation stems from
$2.85bn (1.79bn) in writedowns that
Credit Suisse took on collateralised
debt obligations in 2008. Credit
Suisse blamed the losses on a group
of rogue traders and on a failure of
internal controls. Credit Suisse was
not charged in the case. A spokesman
for the firm declined to comment
yesterday.
US says Credit
Suisse traders
falsified books
BANKING

Truett Tate is set

to leave his job as
head of wholesale
at Lloyds.
Picture: CITY A.M.
MPs overturn
welfare reform
made by Lords
MEMBERS of Parliament last night
reinstated parts of the new welfare
bill that had been defeated in the
House of Lords.
The House of Commons voted in
favour of the 26,000 a year benefit
cap, including child benefit, despite
protests last week from the upper
house of parliament.
The government secured a majori-
ty to overrule several amendments
set out by the Lords, although a
handful of Liberal Democrats
rebelled over plans to means-test cer-
tain benefits including the employ-
ment and support allowance.
The bill will now return to the
House of Lords.
POLITICS

News
5 CITYA.M. 2 FEBRUARY 2012
HOUSE prices declined in January
and barely registered any growth
over the last year, according to fig-
ures out yesterday from
Nationwide.
Prices fell 0.2 per cent last month,
repeating Decembers fall and tak-
ing the 12-month growth rate down
from one per cent to 0.6 per cent.
Average prices now stand at
162,228, from 161,211 in January
2011 and 163,481 two years ago.
The report also showed low inter-
est rates are boosting home afford-
ability initial mortgage payments
have fallen from 46 per cent of take
home pay in 2007 to 31 per cent
now, their lowest level since 2003.
House prices fell
again in January,
Nationwide says
FACTORY output expanded strongly in
the US in January, according to figures
published yesterday by the Institute
for Supply Management (ISM).
However, manufacturing output
declined in China and the Eurozone,
according to data from Markit, though
German production increased.
The ISM purchasing managers
index (PMI) for the US came in at 54.1
up from 53.1 in December and the
30th consecutive month of expansion.
Economists believe the figure is con-
sistent with GDP growth of close to
three per cent.
The new orders index hit 57.1, up
from 54.8, while the employment
measure slowed slightly from 54.8 to
54.3. Any figure above 50 represents
growth.
Chinas manufacturing PMI rose
from 48.7 to 48.8 according to Markit,
although the official government
measure registered slight growth at
50.5.
Meanwhile the Eurozones PMI was
yesterday confirmed at 48.8, up from
46.9 in December. Germany and
Austria both registered growth in
manufacturing, with PMIs of 51 and
51.8, while Italy and Spain continued
to contract sharply at 46.8 and 45.1.
With the Eurozone on the cusp of a
severe recession, it might not be too
long before the global recovery fades,
said Capital Economics Paul Dales.
As such, US growth probably wont
be as good as the ISM PMI suggests.
America boosts output
as China and Eurozone lag
WORLD ECONOMY

CENTRAL government
departments are suc-
cessfully finding effi-
ciency savings but
they have not paid
enough attention to the
reorganisation needed
to sustainably cut costs
on a larger scale in com-
ing years, the National
Audit Office (NAO)
warned in a report pub-
lished today.
Spending fell by 2.3
per cent, or 7.9bn, in
real terms in 2010-11,
the NAO said, with effi-
ciency savings and back-
office cuts accounting
for much of the success.
However, the
planned real-terms cuts
amount to a further 19
per cent by 2014-15 for
the average depart-
ment, and most have
yet to develop a clear
picture of their future
state, or a detailed
plan.
A more strategic view
is needed from now on,
the NAO said depart-
ments need to properly
consider how they can
still deliver services on a
much lower budget, for
example.
They must also take
into account the budg-
ets which are out-
sourced and managed
at arms length, some-
times accounting for
over 50 per cent of total
spending.
In particular, this is
problematic when
departments do not
track the link between
costs and outputs in
external bodies, it said.
Efficiency drive is
not enough NAO
POLITICS

HOUSING

PUBLIC borrowing is likely to come in

around 2.9bn below the latest official
forecasts in 2011-12 and 9bn lower by
2016-17, analysis published by the
Institute for Fiscal Studies (IFS) estimat-
ed yesterday.
However, chancellor George
Osborne should be wary of indulging
in a spending splurge in next months
budget spending would have to be in
the region of 20bn or more to add
even 0.1 or 0.2 per cent to GDP, and
could also risk destroying vital confi-
dence in public finances, the respected
think-tank warned.
The IFS also explained a long-term
fiscal loosening is impossible because
of the risk of a deeper Eurozone reces-
sion or even break-up, and the impact
of an aging population.
The IFS also worried that the govern-
ment may lack the will or ability to
implement its proposed spending cuts.
More than 9 of every 10 in
planned cuts are still to be made, said
IFS boss Paul Johnson.
IFS: A budget
giveaway will
risk disaster
UK ECONOMY

MANUFACTURING output jumped

in January, taking the UK out of the
stagnation experienced in
December, purchasing managers
index (PMI) figures from Markit
showed yesterday.
Output rose, registering a PMI of
52.1, up from 49.7 in December and
hitting its highest level since May
2011, with new orders at their high-
est since March.
Any figure above 50 represents
expansion.
Manufacturers reported that
some UK clients were increasingly
willing to spend in the month, and
new export orders also increased.
January saw the second consecu-
tive monthly rise in orders, with
increased demand from non-
Eurozone countries, chiefly Brazil,
China, the Middle East and the US.
The growth spurt saw small and
medium sized firms increase hir-
ing, though larger manufacturers
remain concerned over the ongoing
Eurozone crisis and the impact it
may have on sales.
The rise in this index, if con-
firmed in other readings in the
coming weeks and months, hints
that the UK may escape a renewed
recession, said Citi analyst Michael
Saunders.
UKs factories
bounce back
BY TIM WALLACE
UK ECONOMY

Belgian PM Elio Di Rupo faces an uphill struggle to fix economic woes

BELGIUM yesterday confirmed its
unenviable title as the first non-
bailed-out Eurozone member to fall
back into an official recession.
GDP in Belgium, the blocs sixth
largest economy, shrank by 0.2 per
cent in the fourth quarter of 2011,
following a quarterly contraction of
0.1 per cent in the July to September
period.
Belgium is often cited as a harbin-
ger of things to come in Europe and
many countries in the region are
already sliding towards recession.
Meanwhile in bailed-out Greece,
itself a victim of a contracting econo-
my, Prime Minister Lucas Papademos
will seek backing from political col-
leagues for more austerity -- a condi-
tion expected by the IMF.
The PSI [private sector participa-
tion] deal has been done, said a sen-
ior Greek banker close to the
negotiations yesterday.
Belgian double dip sparks
worries over euro growth
EUROZONE

ANALYSIS l UK Manufacturing PMI

%
Markit/CIPSOutput Index(LHS)
ONSManufacturingProduction(RHS)
2000 2002 2004 2006 2008 2010 2012
65.0
60.0
55.0
50.0
45.0
40.0
35.0
30.0
4.0
2.0
0
-2.0
-4.0
-6.0
-8.0
FACEBOOK yesterday submitted
papers to become a publicly traded
company later this year, putting an
end in the week of its eighth anniver-
sary to months of heated speculation.
In a rare insight into the mind of
the usually tight-lipped social network
creator, celebrity geek Mark
Zuckerberg included a letter in the fil-
ing.
We often talk about inventions like
the printing press and the television
by simply making communication
more efficient, they led to a complete
transformation of many important
parts of society, he said.
Today, our society has reached
another tipping point.
This point, in which Facebook will
debut as a public company and aim to
raise at least $5bn, could value the
company at $100bn and make billion-
aires out of its early enablers.
Mark Zuckerberg, who abandoned
his Harvard degree after the success of
the website he founded in his college
dorm, owns 533.8m shares or 28.4 per
cent of Facebook valuing him com-
fortably above the $20bn mark when
the company floats.
He also holds the voting rights for
more than 50 per cent of the company,
meaning he will keep control.
The second biggest winner will be
equity firm Accel Partners, led by ven-
ture capitalist Jim Breyer, which piled
$12.7m into the start-up in 2005 and
owns an 11.4 per cent stake.
Other early investors including co-
founders Eduardo Saverin and Dustin
Moskovitz, adviser Sean Parker, Paypal
founder Peter Thiel and Yuri Milners
Digital Sky Technologies stand to
rake in the billions.
Even rockstar Bono could see his pot
increase substantially due to the
$120m injected into Facebook in 2010
through venture capital firm
Elevation Partners, in which he is a
lead investor.
Facebook chief operating officer
Sheryl Sandberg owns 1.9m shares,
comprising 0.1 per cent of the stock.
Facebook IPO
to give birth
to billionaires
BY LAUREN DAVIDSON
TECHNOLOGY

News
6 CITYA.M. 2 FEBRUARY 2012
%
5.5
28.4
11.4
7.6
5
4
2.5
1.5
1
Mark Zuckerberg
Accel Partners
Digital Sky Technologies
Dustin Moskovitz
Eduardo Saverin
Sean Parker
Peter Thiel
Microsoft
Elevation Partners
Greylock Partners
Meritech Capital
Goldman Sachs Group
Jim Breyer
Chris Hughes
Private investors &
Facebook employees
FACEBOOKS FRIENDS: CURRENT INVESTORS
From left:
First company
president Sean
Parker and
co-founders
Eduardo Saverin
and Dustin
Moskovitz
hold stakes in
Facebook
Mark Zuckerberg then a
19-year old psychology and
computer science student
at Harvard launches
Facemash, a site where fellow
students can rate their classmates
2003
SEPTEMBER
Zuckerberg starts writing
code for Facebook and
registers the domain name
thefacebook.com. Six days
after the site is launched,
Harvard seniors Cameron Winklevoss,
Tyler Winklevoss (pictured), and Divya
Narendra accuse Zuckerberg of
stealing
their idea
for a
similar
website
JANUARY
Zuckerberg, Dustin
Moskovitz, and Eduardo
Saverin form an official
partnership -
Thefacebook.com LLC
APRIL
Napster co-founder Sean
Parker becomes president
of Facebook as it is
incorporated into a
new company. PayPal
co-founder Peter Thiel (left)
invests $500m in return for seven
per cent of the company.
JUNE
2004
2004
2004
Facebook expands into
21 UK universities, plus
Mexico and Puerto Rico. 2004
OCTOBER
News
7 CITYA.M. 2 FEBRUARY 2012
Morgan Stanley has landed the coveted
lead left spot in Facebooks long-awaited
initial public offering and the deal is likely
to be managed by its co-head of global
technology investment banking, Michael
Grimes.
The lucky banker has been on good
terms with Sheryl Sandberg, Facebooks
chief operating officer and former Google
executive, since Morgan Stanley advised
the search engine through its IPO in
2004. He is said to have been courting
Zuckerberg and his team in anticipation
of this expected float.
45-year old Grimes joined the pecking
order in the late 1980s, starting out at
Salomon Brothers before moving to the
Frank Quattrone-led technology invest-
ment team at Morgan Stanley in 1995.
Grimes has worked on a vast range of
transactions worth over $100bn in value,
acting for clients such as HP, Intel,
Microsoft, Netflix, Oracle and SanDisk.
His portfolio includes Googles $1.9bn
IPO in 2004, completed by auction.
Forbes added Grimes to its Midas List
of the top dealmakers in the technology
sector in 2002, where he has repeatedly
been ranked top investment banker.
Morgan Stanleys technology team
topped the US IPO league tables in 2011,
taking $2.2bn in fees from managing 11
per cent of tech IPOs, according to
Thomson Reuters.
It led LinkedIn, Groupon and Zynga
through their keenly-watched public
offerings last year.
JP Morgan Chase, Goldman Sachs,
Merrill Lynch, Allen & Co and Barclays
will act as assistant underwriters on the
IPO. While rumour tipped Goldman
Sachs to be second in command, the
bank which invited unwelcome contro-
versy when it sold $1.5bn private shares
for Facebook last year was relegated to
third place by JP Morgan.
An IPO of more than $1bn would usu-
ally pay its underwriters four to five per
cent, but it is thought as little as one per
cent of Facebooks winnings could end up
in the banks pockets.
Lauren Davidson
ADVISERS: MORGAN STANLEY, JP MORGAN, GOLDMAN SACHS ET AL
MICHAEL GRIMES
MORGAN STANLEY
Facebook buys
Facebook.com domain
name for $200,000
2005
AUGUST
$3.63m
loss
JANUARY
2006
2006
SEPTEMBER
FACEBOOK: A TIMELINE OF THE SOCIAL NETWORK
2009
SEPTEMBER
Facebook says
it has become
cash-flow
positive. Hits
360m users
A leaked cash-flow
statement shows Facebook
made a net loss in 2005
2008
OCTOBER
International headquarters
set up in Dublin. Facebook
now has 145m active users
Facebook settles two lawsuits
related to the Winklevoss twins,
resulting in it acquiring their
social networking site ConnectU
for 1,253,326 shares of
Facebook stock and $20m in cash
2011
JANUARY
2008
JUNE
Facebook attracts
$500m in investment
for one per cent of
the firm, valuing it at
$50bn. Approaches
845m users
2011
SEPTEMBER
eMarketer estimates
Facebooks 2011
revenue at $4.27bn
Facebook is opened to
everyone over the age of 13
that has an email address
Facebook files to raise
$5bn in an initial public
offering, valuing the
firm at up to $100bn
2012
FEBRUARY
NEW8 FROM THE
CTY OF LONDON
Get City news, info and offers at
www.cityoflondon.gov.uk/eshot
8tories supplied by the City of London
ADVERT8EMENT
Make a splash
at Golden Lanel
he City of London's
newly-refurbished
Golden Lane Sport &
Fitness, in the heart of the
Square Mile, re-opens its
doors on Saturday 4
February. The centre offers
a wide range of state-of-the-
art facilities, including a new
gym, a new sports hall and
a 20-metre four-lane
swimming pool, as well as
new classes including
Zumba, Aqua and Circuits.
City Policy Chairman Stuart
Fraser hosts the AC UK Square
Mile Debate 2012 at the Guildhall
this evening. The event, which is
entitled 'My Flow, Your Rules, The
Buy Side Bites Back', brings
together key players in the
currency markets for a lively
discussion about current topics.
Celebrated actor Sir Patrick
Stewart hosts an evening of
Dickensian entertainment at
The Mansion House on
Tuesday 7 February, to
celebrate the bi-centenary of
the writer's birth. The event
is being held in aid of The
Charles Dickens Museum.
Dickens Dinner at
Mansion House
Policy Chairman
hosts City debate
T
Young artists exhibit at Guildhall Art Gallery
ReHang, the youth panel for Guildhall Art Gallery, presents a free
exhibition of work by young people. The show, which runs from 8
February to 29 April, is a Stories of the World youth engagement
project as part of the Cultural Olympiad 2012.
The Social
Network, a
film about
the
creation of
Facebook,
is released to massive
critical acclaim, despite
Zuckerberg claiming it
is largely inaccurate
2010
OCTOBER
NOMURA revealed a surprise boost
back into profit in its quarterly results
yesterday, although analysts said that
much of the improvement was down
to one-off gains.
The bank swung back into the black
to book earnings of 36.9bn (306m)
for the quarter, versus a 42.3bn loss
the previous quarter.
That was on the back of what
appeared to be a dramatic improve-
ment in its wholesale bank, a division
that is being partially dismantled as
Nomura retreats from its internation-
al business.
Wholesale, which recently lost its
chief Jesse Bhattal, formerly of
Lehman Brothers, recorded a pre-tax
profit of 37.8bn for the quarter to 31
December. That compares to a 73.1bn
loss during the previous three months
and a 10.8bn profit in the equivalent
period of 2010.
But the headline figure was
propped up by the one-off sale of the
Nomuras stake in Skylark, the
Japanese restaurant chain, which ana-
lysts say brought in the lions share of
the profits, and a paper accounting
gain of 16bn due to the lower value of
the banks debt. The lender did see
some bounceback in trading volumes,
however, boosting revenues in fixed
income and equities trading.
Its retail and asset management
divisions, the other main parts of the
business, both suffered a plunge in
revenues and profits. The retail bank
brought in quarterly pre-tax profits of
10.1bn in the quarter, a fall of more
than half, while asset management
booked 4.2bn in profits, a fall of a
third on the previous year.
One-off gains
push Nomura
back to profit
BANKS and other financial services
firms had to deal with 60 regulatory
changes each working day during
2011, according to a report from
Thomson Reuters Governance, Risk &
Compliance.
Regulators around the world
announced 14,215 changes in 2011, a
16 per cent increase from the 12,179
announcements in 2010.
The report shows that the majority
of regulatory activity, 57 per cent,
came from the US, while the UK and
rest of Europe made up 22 per cent
and Asia accounted for 15 per cent.
The volume of announcements,
which can include anything from a
speech which may signal the direc-
tion of a new regulation to a final
binding rule, has grown continuously
since 2008 when regulators issued
8,704 changes.
The firm warn that the level of
announcements will increase even
more during 2012 as governments
tighten regulation and new direc-
tives, including those related to the
US Dodd-Frank act, are implemented.
Scott McCleskey, head of financial
services regulation at the GRC unit,
said: This growth in activity also has
an effect on the level of compliance
spending leaving less to lend, invest,
and do the other core activities which
will be necessary to revive the global
economy.
Michael Wainwright, partner at
Eversheds law firm, said: Businesses
are keen to see the future course of
banking regulation resolved as soon
as possible, so that the banks can get
back to business with a clear view of
the ground rules under which they
will operate.
*Fare applies to one-way flights to selected destinations in Germany, seat availability is limited and subject to change. For other European destinations, please check the respective fares and conditions on lufthansa.com
Discoveries
A product of Lufthansa.
Over 100 fascinating destinations in
Europe are just waiting to be explored.
Start exploring Europe at surprisingly low fares
full-service experience included. Easy online
and mobile check-in, generous luggage allowance
and complimentary food and drinks.
Book now at lufthansa.com
Banks hit with 60 regulatory
changes a day during 2012
BY JULIET SAMUEL
BANKING

CORPORATE GOVERNANCE

News
8 CITYA.M. 2 FEBRUARY 2012
John Towers was chairman of Phoenix, which bought Rover for 10 Picture: REUTERS
Probe censures Deloitte
over Phoenix Four advice
THE UKs corporate governance reg-
ulator has criticised accountancy
firm Deloittes advice during the
controversial 2005 takeover of MG
Rover, saying the firms conduct
fell short of the standards expect-
ed.
Deloitte and then-corporate
finance partner Maghsoud
Einollahi acted as adviser to com-
panies involved with MG Rover and
the so-called Phoenix Four directors.
The investigation will now be
referred to a tribunal.
We are disappointed that the
AADB has taken the view that limit-
ed aspects of our advisory work
relating to two transactions in 2001-
02 falls short of acceptable stan-
dards, said Deloitte in a statement.
We do not agree with the AADB
and are confident that when all the
evidence is considered, the tribunal
will conclude that there is no justifi-
cation for criticism of either Deloitte
or our former partner Mr Einollahi.
REGULATION

ABSA Group, the South African

lender majority owned by Barclays,
said yesterday its full-year earnings
likely rose by as much as 22 per cent.
Absa, which is due to report results
on 10 February, said in a statement it
expected to report an increase of
between 18 and 22 per cent in diluted
headline earnings per share for the
year to end-December.
That compares to an average fore-
cast of a 19 per cent increase in a poll
of 13 analysts by Thomson Reuters.
Headline earnings per share,
which excludes certain items, is the
main measure of profit in South
Africa.
The bank did not give a reason for
the expected rise in profit. It reported
a 19 per cent increase in first-half
earnings in August, as a drop in bad
debts helped lift its mainstay retail
unit.
The bank has focused on reining in
costs and boosting revenue from
transactions as demand for credit
remains slack in Africas largest econ-
omy.
Barclays Absa
sees earnings
rise up to 22pc
BANKING

www.RateSetter.com Customer Phoneline: 08442490115

In association with RateSetter: A better way to Save and Borrow, Peer to Peer
DAVID HUGHES | LAING OROURKE
I think its the right thing to do. He caused the UK economy such a lot
of damage that its worth it to make a point. He wasnt solely
responsible for the collapse of RBS but he was very instrumental.
ALEX IGEL | EMPOWERED SYSTEMS
Absolutely. Im a passionate believer in ethical and socially aware
capitalism. If he had managed things better then there would have
been checks and balance against the collapse happening.
DANIEL PETTICAN | B OF A MERRILL LYNCH
Yes. He took an enormous amount of credit for what he claimed to
have done and he deceived the public and the shareholders. On
numerous occasions he claimed there was no trouble in the US.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: SHOULD FRED GOODWIN HAVE
LOST HIS KNIGHTHOOD? Interviews by James Waterson
SHARES in broker ICAP jumped
7.9 per cent to 362p yesterday
despite the firm announcing job
losses and reduced annual profit
expectations.
The unusual situation occurred
after the worlds largest interdeal-
er agent beat gloomy analyst pre-
dictions that the situation would
be even worse.
Yesterday ICAP announced that
profit for the year ending in
March should be toward the
upper end of the 336m-358m
range. The figures are still sub-
stantially down on November
2011 predictions of 358m-390m
profit.
Reduced trading volumes due
to the Eurozone crisis and a
reduction in market liquidity
have hit the firm, resulting in a
seven per cent drop in trading vol-
ume during the final three
months of 2011 to $740bn
(466bn).
Meanwhile electronic trading
volumes during January 2012
dropped 19 per cent on the same
month last year.
Michael Spencer, group chief
executive of ICAP, said: Like
everyone else we saw a significant
reduction in risk appetite in
November and December. In
January we saw encouraging signs
of activity starting to return,
albeit cautiously in some mar-
kets.
The firm used the interim man-
agement statement to announce
that it had reduced expenditure
by 20m during the current
financial year, mainly by cutting
jobs in areas where profits are
falling but that it would continue
to invest in areas such as financial
futures and commodities.
ICAP profits sink
but shares surge
BY JAMES WATERSON
BROKERS

News
10 CITYA.M. 2 FEBRUARY 2012
CAN ICAP BOOST ITS PROFITABILITY IN 2012? By JAMES WATERSON

NESE GUNER | CITI

As we expected, ICAP
announced that it has taken action to
reduce its cost base and been realigning
the biz by reducing headcount in areas of
lowered profitability. The cost base has
already been reduced by a net 20m (~1.5
per cent of underlying cost base) and we
think there is room for more cost
cuts.

PHILIP MIDDLETON |
BOA MERRILL LYNCH
The company is displaying a
shareholder-friendly attitude to cost man-
age alongside its traditional growth orienta-
tion. At current levels, ICAP is simply too
cheap, unless you instead believe that the
capital markets have suffered major struc-
tural damage recently. This is definitely not
our view, and so we reaffirm our Buy
on ICAP.

JAMES HAMILTON | NUMIS

Further cost saving could help and are likely next year. The immediate net 20m benefit is a mixture
of reduced staff numbers (the Brazilian redundancies was announced last year) and lower bonus payments
opposed to just redundancies.

ANALYSIS l ICAP PLC

p
26Jan 27Jan 30Jan 31 Jan 1 Feb
365
360
355
350
345
335
340
362.00
1 Feb
London office take-up falls
but tech firm demand soars
TAKE-UP of central London
offices fell by 27 per cent in 2011
compared to the previous year,
as the global economic slow-
down continued to take its toll,
according to research by Knight
Frank.
The property consultancy said
take-up fell to 10.7m square feet
last year.
However, this coincided with a
fall in supply and doubling of
demand from the technology
sector, providing some reason
for confidence in the long-term
outlook.
Companies including Apple,
Expedia, Facebook and Groupon
signed deals for 1.3m sq ft, up
from 640,000 sq ft the previous
year, despite a slowdown in
demand from other industries,
particularly finance.
Knight Frank said that rising
technology firm demand was a
London-wide phenomenon
and not restricted to the
Shoreditch area coined as the
Silicon roundabout.
However, the supply of central
London offices continued to fall
by 1.5m sq ft in 2011 to 16.9m sq
ft with supply having peaked in
2009 at 23m sq ft.
Tim Robinson, leasing part-
ner, said the leasing market had
fundamentally changed and
that the reduction in pace in the
sector is like comparing a 20:20
cricket to a test match cricket: It
is a slower game with the odd
burst of excitement.
He added: If demand is no
better than last year, I expect
supply to continue to fall in 2012
and 2013.
Knight Franks quarterly
report also revealed that a third
of all of the 9.1bn of central
London office investments last
year were carried out by first-
time buyers as a new world
order of international operators
continued to flock the market.
Stephen Clifton, City invest-
ment partner, said 60 per cent of
last years acquisitions had
involved overseas equity, with
the hottest money currently
coming from Malaysia, Korea,
Hong Kong and Russia.
Up until now the overseas
money has targeted trophy
assets, but I expect them to
diversify their portfolios this
year taking on more risk, either
buying sites or joint venturing
with UK developers, he said.
Office investment transac-
tions fell to 9.1bn compared to
10.4bn in 2010, in part due to a
relative lack of supply.
BY KASMIRA JEFFORD
RETAIL

News
11 CITYA.M. 2 FEBRUARY 2012
Radicals admit plan to blow
up LSE and Mayors offices
FOUR terrorists who claimed they
were inspired by Al-Qaeda yester-
day pleaded guilty to planning
bomb attacks targeting the London
Stock Exchange, as well as other
City landmarks.
Mohammed Chowdhury, Shah
Rahman, Gurukanth Desai and
Abdul Miah, who were arrested in
December 2010, all admitted yester-
day to engaging in conduct in
preparation for acts of terrorism.
The men, all British citizens
from London and Cardiff, had
planned to send nail bombs
to several prominent London
buildings listing the London
Stock Exchange, the US
embassy and Mayor of
London Boris Johnsons
work address as possi-
ble targets.
But an undercover
police operation
caught the men
before the attacks
could go ahead.
The four men admitted
their guilt under a special
arrangement that allows
defendants to be told their
potential sentence if they
plead on the night before
the trial is due to
begin.
Five other
men pleaded
guilty to other
charges related
to terrorism. All
nine will be sen-
tenced next week.
BY ELIZABETH FOURNIER
CRIME

THE GLOOM in investment manage-

ment deepened yesterday when
Brewin Dolphin reported a slump in
commissions, as clients stayed on
the sidelines amid volatile markets.
Brewin said first quarter commis-
sion income fell 24.4 per cent year-
on-year to 17.5m.
The firm said the figure had con-
tinued to fall into January but other
income has held up.
The update comes days after
Charles Stanley blamed the poor
trading environment, euro uncer-
tainty and depressed UK economy
for a drop in revenue of nearly a
sixth to 27.3m.
Yesterday Brewin said total funds
under management were up 3.8 per
cent to 24.9bn, with recovering
stock markets helping offset a
100m net outflow of funds.
Analyst David McCann at Numis
said: This is the same trend that
Charles Stanley reported last week:
it appears private client activity lev-
els are well down.
Brewin said discretionary funds
saw a 100m net inflow though
advisory funds shed 200m during
the quarter.
First quarter financial planning
and trail income was up 26.6 per
cent and investment management
fees increased 15.8 per cent.
It caps a major week for Brewin,
whose advisory and broking busi-
ness started a new life yesterday
under the ownership of Spains N+1.
BY PETER EDWARDS
ASSET MANAGEMENT

Investment
9.1bn of central London office
investments last year, a 12 per
cent fall on 2010 (10.4bn)
First-time buyers accounted for a
third of deals
Overseas investors accounted for
60% of turnover
Hottest money:
Malaysia, Korea,
Hong Kong and
Russia.
ANALYSIS l Brewin Dolphin Holdings PLC
p
26Jan 27Jan 30Jan 31 Jan 1 Feb
154
152
150
148
146
152.30
1 Feb
Take-up fell by 27 per
cent to 10.7m sq ft
last year
Take-up of central
London offices from
IT and telecoms firms
more than doubled to
1.3m sq ft. Accounted
for 20 per cent of all
transactions.
Availability of central
London offices fell by
by 1.5m sq ft to 16.9m
sq ft. Vacancy rate of
7.3 per cent compared
to 8.1 per cent in
2010.
Central London
Lettings market
Brewin fees drop as
clients sit on hands
HOME Retail Group has named for-
mer Best Buy executive John Walden
as the new boss of its struggling
Argos business.
He takes over as managing director
of the chain next month and will
report to group chief executive Terry
Duddy, who had taken on the role
temporarily after the departure of
Sara Weller last April.
We look forward to John bringing
a valuable, fresh perspective to the
future development of Argos, said
Duddy yesterday.
Argos, which reported a 8.8 per
cent slump in sales over the
Christmas trading period, is facing
fierce competition from supermar-
kets and internet players and has
been particularly hit as low-income
customers struggle with severe budg-
et squeezes.
Duddy warned that the group,
which also owns Homebase, would
have to cut its final dividend and said
that it expects profits to be 60 per
cent lower this year at around
100m.
He also said HRG would close its
four-store UK homewares trial
HomeStore&More at a cost of 10m
and pledged to scale back Argos 750-
strong estate as leases come up for
renewal over the next five years.
The group has come under pres-
sure from analysts to close more of
its stores, but Duddy has rejected this
plan, arguing that the wider econo-
my was to blame rather than his
strategy for the company.
With 40 per cent of Argos sales
now made over the internet and 10
per cent of internet sales made via
smartphones, Duddys strategy is to
invest in a variety of purchasing
options for customers.
Shares in Home Retail Group,
which have lost over half their value
in the last year, closed down 1.3 per
cent last night at 106p.
PEACOCKS administrator KPMG has
received six bids to rescue the group
out of administration.
The first round of bidding closed
on Monday, and it is understood suit-
ors for the Cardiff-based business will
now be asked to provide further
details ahead of a round of final
offers next Monday.
Private equity firms KKR and
OpCapita were last week still in the
running to buy the company, while
trade buyer Edinburgh Woollen Mill
was also thought to be interested in
buying parts or all of the chain. Sun
European Partners, which bought
Peacocks sister chain Bonmarch ear-
lier this month, has also been linked
to the company.
As many as 50 bidders were said to
have originally expressed an interest
in the beleaguered retailer, which
owns 611 stores and employs 9,000
people either as a going concern or
for parts of its estate and its stock.
The chain collapsed earlier this
month after rescue plans, including
injecting fresh equity and a debt-for-
equity swap, ultimately failed. The
company has borrowings of more
than 750m while it made sales of
720m in the year to April 2010.
A total of 249 staff, almost half of
Peacocks head office workforce in
Cardiff, have been made redundant.
However, strong interest in the firm
has raised hopes that KPMG may yet
find a buyer to rescue the remaining
jobs.
Peacocks administrator receives six
bids to rescue the collapsed retailer
BMI has signed a term sheet to sell its
regional offshoot BMI Baby to a mys-
tery UK company.
BMI said the firms had mutually
agreed to keep the potential buyer
and value of the sale under wraps.
The deal has come as a surprise to
rival airlines, including German out-
fit INTRO Aviation, which said it was
close to a deal for BMI Baby last
month but did not return requests
for comment yesterday.
BMI said in a statement that the
new potential owner would continue
to use the brand name for an interim
period and run flights during the
summer as planned.
BMI, which is owned by Lufthansa
but is being sold to British Airlines
parent IAG, is looking to sell its BMI
Baby and BMI Regional units as part
of its takeover.
A deal would effectively save the
BMI Baby brand, as IAG had indicated
that it would close the unit if
Lufthansa could not find a buyer.
Mystery firm signs term
sheet to buy BMI Baby
TRANSPORT

IMPERIAL TOBACCO said yesterday its

cigarette volumes fell seven per cent in
the final quarter of 2011 after sales
were hit by a tough Spanish market,
Syrian sanctions and destocking in
Ukraine and the US.
The worlds fourth-biggest cigarette
maker, whose brands include Davidoff
and Gauloises, said sales were down by
one per cent in the period but rose
three per cent when stripping out the
impact of those four markets.
The Bristol-based group, which sells
over 340bn cigarettes annually, has
suffered in Spain from a bruising price
war, a ban on smoking in public places
and rising unemployment.
A ceasefire was called late last year
but Imperials third most-profitable
market after Britain and Germany is
still struggling from a decline of
around 15 per cent per year as the
Spanish economy looks to be heading
for recession.
Sales have also been hurt by United
Nations sanctions on Syria.
Imperial Tobacco takings
fall as Spain woes persist
RETAIL

SUPERMARKET giant Tesco has

moved Bob Robbins from his role as
UK chief operating officer three
weeks after it was revealed he sold
stock ahead of a profit warning,
according to an internal announce-
ment yesterday.
The announcement said Robbins,
who has held the UK COO role since
March 2011, will work directly for
group chief executive Philip Clarke
on a number of initiatives.
Bob will work directly for me in a
new role that will allow the executive
team to increase its focus on the
strategic priorities we have estab-
lished whilst strengthening further
the support we provide to the UK
business, said Clarke.
Robbins sold 50,000 shares at
404.51p apiece on 4 January, netting
around 202,000, according to a fil-
ing published on 5 January.
That was eight days before Tesco
reported its biggest drop in underly-
ing British sales for decades and
issued a profit warning that sent its
shares plunging.
Tesco said it and Robbins had oper-
ated within the rules, though the sale
was criticised by corporate gover-
nance watchdogs.
A Tesco spokesman said Robbins
move was about using his skills to the
best advantage of the whole business
and was entirely unrelated to his
share sale.
Tesco moves
UK exec who
sold shares
RETAIL

Home Retail
hires Walden
as Argos boss
BY KASMIRA JEFFORD
RETAIL

BY KASMIRA JEFFORD
RETAIL

News
12 CITYA.M. 2 FEBRUARY 2012
Black market sales are the main culprit
PAIN in Spain. That is the cause of
lower sales at Imperial Tobacco.
The Spaniards, hurt by austerity
and high unemployment, have
decided to kick the cancer sticks.
The quintessential cafe culture
moment a strong black coffee
and cigarette is a thing of the
past. Or is it? We doubt it some-
how.
While it is true that sales in
Spain have fallen by double digits,
that is partly explained by a bitter
price war. First Philip Morris cut
the price of its leading Spanish
L&M brand to 3.30 to compete
with British American Tobaccos
Pall Malls. Imperial Tobaccos
biggest label Fortuna looked expen-
sive by comparison at 3.40, so it
cut its own prices too.
Imperial was right to cut prices
to protect its market share. It cur-
rently has 34 per cent of the mar-
ket but Philip Morris, on 32 per
cent, is snapping at its heels.
Volumes have also declined,
which can be explained, in part, by
the smoking ban and changing
attitudes towards smoking. But the
black market for cigarettes in
Spain is probably more responsi-
ble. Spaniards arent necessarily
kicking the habit just feeding
their addictions more cheaply.
Spain is currently losing as
much as 6bn a year in VAT and
duty due to contraband cigarettes,
and analysts expect new Prime
Minister Mariano Rajoy to launch a
crackdown in the near future.
That would allow the tobacco
firms to call off the price war;
Imperials profits and sales would
somewhat recover. With that in
mind, we still think the shares are
worth a puff.
BOTTOMLINE
Analysis by David Crow
ANALYSIS l Home Retail Group PLC
p
26Jan 27Jan 30Jan 31 Jan 1 Feb
108
106
104
102
100
98
106.00
1 Feb
ARGOS incoming chief executive
John Walden is a little known figure
on this side of the Atlantic, but his
extensive multi-channel experience
in the US has caught the attention of
executives at Home Retail Group.
Walden, 52, kicked-off his retail
career in the 1990s as chief operat-
ing officer of online supermarket
pioneer Peabody before joining Best
Buy, the worlds largest electricals
retailer in 1999, where he ran the
companys online division.
After eight years with the firm,
Walden jumped ship to US retailer
Sears, where he was appointed
chief customer officer, in charge of
the internet, catalogue and home
services divisions.
He spent less than a year with
the company and is said to have
received a $2m pay-off.
Walden a law graduate from
Illinois Institute of Technology who
also holds a masters in management
from the Kellogg School of
Management was most recently
the chief executive of renewable
technologies firm Activeion Clean
Technologies.
Despite his wealth of
online experience, some in
the City have ques-
tioned whether
Walden is the
right man to tack-
le Argos under-
performing high street stores and its
costly catalogue business.
I would still have some question
marks over his experience and the
mandate that comes with the job,
Liberum Capital analyst Simon
Irwin said, pointing to Waldens lack
of knowledge in the UK retail or
property market.
The biggest concern is whether
the mandate he has been given is
one of continuity or whether he will
shake things up, he added.
Home Retails chief executive
Terry Duddy recently defended
Argos strategy
and large
store portfo-
lio, but
many City
e x p e r t s
believe it
will need
to go
through
r a di c a l
changes
to survive.
Shop group pins hopes
on US internet expert
BY KASMIRA JEFFORD
RETAIL

JOHN WALDEN
REFORM IS
THE STORY
OF BANKING
BESTSELLER
EVER WONDERED how former BP and
Lehman Brothers spinner Andrew
Gowers ended up as a strategic consult-
ant to the Association for Financial
Markets in Europe?
The appointment of the one-time FT
editor last November was a seamless
transition, says AFMEs CEO Simon Lewis,
from Gowers editing the bodys collection
of essays on reforming Europes financial
markets, as published yesterday.
The book contains some salient sug-
gestions from AFMEs independent con-
tributors, who were set the exam
question: How much has the capital
markets industry changed and how
much further does it need to go?
Given the current headlines, The
Capitalist skipped straight to the section on
the impact of regulation on remunera-
tion, where PwC reward expert Tom
Gosling argues its not all about the pay.
Changes to compensation are important,
he writes. But for the outcome to be suc-
cessful, compensation changes must be
viewed in the context of a firms wider
enterprise risk-management approach.
Food for thought for the investment
bankers invited to last nights launch at
Kempinska retained the intellectual
property, however, and has rebuilt the
chain into a 1.8m turnover business, as
of the year to October 2011, with ambi-
tions to expand beyond its 11 venues into
media, management and more clubs.
We are always looking for investment,
says Kempinska, as she beds in on
Goldmans doorstep.
GOING FOR A SONG
TOM CROSS BROWN is very excited.
Why? Because Stowe Opera, as supported
by the former Lazard and ABN Amro
banker, is moving for its annual festival
this July to Buckinghamshires Winslow
Hall, the Grade 1-listed mansion designed
by Sir Christopher Wren (above).
The performance is by invitation of
restaurateur Chris Gilmour, who saw off
reported competition from Tony and
Cherie Blair to buy the estate in 2007.
This years opera will be The Marriage
of Figaro, and bankers on Cross Browns
circular have been offered a 5 discount if
they book before the end of February.
Every little helps.
the Royal College of Surgeons Michael
Cole-Fontayn of Bank of New York
Mellon, Jose-Luis Guerrero of HSBC and
Costas Michaelides of Credit Suisse all
left clutching a free copy.
BIRLEY BLACKOUT
THE CLOCK is ticking for Robin Birley if
his 20m townhouse on Hertford Street
is to open by Easter (The Capitalist 18
January). And matters wont have been
helped by the dramatic power outage in
Mayfair yesterday afternoon, which
forced Birleys contractors Laing
ORourke to down tools early.
The Shepherd Market blackout also
interrupted the work of one livid
finance boss on Trebeck Street, and the
lunch of the hedge funders dining in
the packed restaurant Sofra.
It should be noted, at this point, that
the lights went out at 4.05pm.
LAUGHING MATTER
EVERYONE in the City could do with some
humour, says Maria Kempinska, the
owner of the Jongleurs comedy chain,
who has strategically located her first
Square Mile venue around the corner
from Goldman Sachs on Bride Lane.
She should know this is the business-
woman who started her company in 1983
with a 300 overdraft and a bicycle as col-
lateral, only to see its owner Regent Inns,
which bought Jongleurs in 2000, collapse
into pre-pack administration in 2009.
Left to right: AFME
contributors Paul
Tucker, deputy gover-
nor of the Bank of
England; WPP CEO
Sir Martin Sorrell;
and the books editor
Andrew Gowers
Pictures: GETTY / REX
Sign up: Sign up: Sign up: Sign up:






Dont miss out!

Speakers
Discover and Build Your Personal Brand
4th Annual Nordic Career Forum
London t 15 March 2012 t Radisson BLU Portman Hotel
Programme





















































































v o c Dis
4th Annual Nor
ondon L t 15 Mar
























uild Y er and B
eer F ar dic C 4th Annual Nor
012 ch 2 15 Mar t adis R
























our P uild Y Yo
orum eer F
tman Ho or U P on BL s adis
























BB onal B s er our P
el t tman Ho
























and aaa rr Br Br B
















































ou Do y
en pho e drunk v ha
oo much when y ak t spe
e an A eel lik f
ain whe t er unc
























elf on F s our f y s o o t en pho
e nerv ou ar oo much when y
/Plain Jane age Joe er v e an A
e a good r ou mak ther y ain whe
























? ebook ac elf on F
? ous e nerv
? /Plain Jane
? sion s e t impr s e a good r
























immer imm
ssss r er ak Spe
mm er W r WW PP
























amm me ogr
Ne
Pr
N ork and displa w t Ne
andy
15 18.
Ma andy
i
15 . 19
hat is a P W
gen S Jr 0 3 . 19
ocial Media and S
our Br Y
ii W er W W P 5 4 19
























s a P
y oo
n un
yy pla ork and displa
o t eh y L
s a P and onal Br s er a P
uun g undber
di
gen S
Medi Med dia and
an aand r Br r
iimmer
























t ahe o ge t t an w
ed one or mor tick
uild er and B v o c Dis
orum! eer F ar dic C Nor
s out! t mis Don
dic Chamber o y Nor o an Go t
and w t sign up no
























s w s ad in the busine t ahe
? e ed one or mor
uild r YYo and onal Br s er P our
orum!
c ommer f C dic Chamber o
e our plac e y ur ec o s w t f
























e e
h
orld? s w
and at the
sit eb eb eb w
t
w e w
t. en the v he e or the f
























o e
uu SS gen S Jr
t eh y L y L Mandy L
tin F Mar
e Mindr
























immer
a
alc lc
g
tt 0
0
undber
ch tin F
er W P 5 4 . 19
a
l
Inspir
Mindr 00 . 0 2
shop ork W
anel 3 P 0 3 . 0. 00
t Ne
2
ork and displa w t ee 00 0 00
00 v E
21.
t n en v EE 00 2. 2. 2 222
























iim
op op
mmer
at at ation
eee rr
ho oop
DD sion us c Dis
y ork and displa
s nishe
























F C ER O MB CHA T
H
E
ANISH~UK D
Sign up:
uk . o c c. duc . www
w t sign up no
s: er ganis Or
























CE MMER RC O
ANISH~UK
Sign up:
c. fbc . www
e our plac e y ur ec o s w t
























uk . o c c.
Sign up:
.nbc www
























Sign up:
om c uk. c .nbc
e Mindr
























Sign up:
c jc uk/ /j g. or c. c .s www
Media p
























: tner ar Media p
15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 2 FEBRUARY 2012
WELSH-born Sir Howard Stringer is to
step down as president and chief
executive of Sony after a fifteen year
run at the Japanese electronics com-
pany, to be replaced by Kazuo Hirai.
Hirai, aged 51 and currently execu-
tive deputy president, will take
Stringers seat on 1 April.
Stringer a rare foreign chief exec-
utive for a leading Japanese compa-
ny will remain as chairman of Sony
Corp, and will become chairman of
the board of directors in June when
Yotaro Kobayashi retires.
This comes as Sony today
announces its third quarter earnings,
which are expected to leave the com-
pany in line for a fourth consecutive
annual net loss a first for Sony in its
54 years as a publicly listed compa-
ny due to its struggling TV division.
Sony has suffered due to the partic-
ularly strong yen, the earthquake in
Japan and the floods in Thailand.
It has also failed to match rivals
Apple and Samsung as they hurtle to
market domination.
Hirai recognised the challenge
ahead of him, saying: The path we
must take is clear: to drive the growth
of our core electronics businesses
primarily digital imaging, smart
mobile and game; to turn around the
television business; and to accelerate
the innovation that enables us to cre-
ate new business domains.
Sir Howard called Hirai, who
notably brought the PlayStation divi-
sion back into profit after four years
in the red, one of a new generation
of leaders.
A former journalist then president
of broadcaster CBS, Emmy Award
winner Stringer joined Sony in 1997
as president of its US operational
unit.
Sony shares, which have lost two
thirds of their value since Stringer
took the helm in mid-2005, closed
down two per cent at 1,364 yen.
FIAT-OWNED Chrysler Group posted a
44 per cent rise in US car sales in
January, led by gains for its Jeep brand,
while its larger domestic rival General
Motors lost ground in a month
marked by modest growth.
Chryslers sales blew past some ana-
lysts expectations of a 35 per cent
increase, demonstrating the unlikely
comeback of the smallest US carmaker
nearly three years after its taxpayer-
funded bankruptcy restructuring.
GM, the largest US carmaker, report-
ed a six per cent drop in US auto sales
in January, while Ford Motor posted
sales that were seven per cent higher,
spurred by a 60 per cent jump in sales
of the Focus small car.
So far, the annualised sales rate for
January is tracking at 13.7m vehicles,
JP Morgan analyst Himanshu Patel
wrote in a research note. Patel and
other analysts had predicted a 13.5m
sales rate for the month.
GM was expected to show a decline
from last January, when the automak-
er offered consumer incentives to
jump-start sales. GM sales totalled
167,962 vehicles in January. Some ana-
lysts had expected GM to report a nine
per cent drop.
Ford, the second biggest US carmak-
er, sold 136,710 vehicles in January.
VW and Nissan Motor reported
gains as well. VW sales rose 48 per cent
to 27,209 vehicles, buoyed by the intro-
duction of its Passat sedan. Nissan
sales in the US rose 10.4 per cent to
79,313.
Mixed January for US car retailers
as Chrysler and Ford beat forecasts
BRITAIN should consider all options
for increasing capacity at London
Heathrow airport, including a third
runway and allowing planes to land
and take-off simultaneously on its two
runways, according to business group
London First.
A report published yesterday by the
capitals connectivity commission --
formed by London First -- said all viable
options for meeting the UKs long-
term need for further capacity, includ-
ing a new airport, should be consid-
ered.
However, it criticised the govern-
ment for ruling out a third runway at
Heathrow for political reasons.
The commission led by Peter
Robinson, chairman of law firm
Berwin Leighton Paisner, said a new
hub airport was the type of long-term
infrastructure planning London need-
ed to stay competitive. But it warned
that a new airport could take up to 30
years to deliver and would be unable
to meet the need for new hub capacity.
Business group calls for
more Heathrow capacity
TRANSPORT

AIRPORT operator BAA must sell

London Stansted airport, after losing
an appeal against an earlier order by
the Competition Commission.
But BAA has not ruled out appeal-
ing further, in the latest twist in a
three-year fight between the firm and
the Competition Commission over its
dominance of the UK airport market.
We are disappointed by the deci-
sion of the Competition Appeal
Tribunal which we will now carefully
consider before making any further
statements, BAA said.
Last year the commission ordered
BAA to sell one of its Scottish airports
before it disposes of Stansted.
BAA, owned by Spanish infrastruc-
ture group Ferrovial, put Edinburgh
airport up for sale in October, but
asked for a judicial review of the latest
ruling on Stansted.
Whilst BAA is of course entitled to
explore the available avenues for chal-
lenge, it is now surely time for BAA to
accept our findings and proceed with
the necessary divestments, said Laura
Carstensen, a member of the original
inquiry.
Ryanair, which operates most of its
London flights out of Stansted and
has long lobbied for a break-up of
BAAs airports, welcomed the decision
and called for the urgent sale of the
site.
BAA loses Stansted appeal
BY MARION DAKERS
TRANSPORT

Stringer set
to step down
as Sony chief
BY LAUREN DAVIDSON
TECHNOLOGY

BY HARRY BANKS
AUTOMOTIVE

News
16 CITYA.M. 2 FEBRUARY 2012
NEWS | IN BRIEF
De La Rue names new chairman
Banknote printer De La Rue has named
Philip Rogerson as its next chairman,
adding to the chairmanships he already
holds at Aggreko, Carillion and Bunzl.
Rogerson will join the De La Rue board as
a non-executive next month, and move to
the chairman role when incumbent
Nicholas Brookes retires at the AGM in
July. Rogerson will step down from his
role at Aggreko in April.
American Airlines takes axe to jobs
AMR Corp, the bankrupt parent of
American Airlines, may slash between
12,000 and 14,000 jobs as part of a
bankruptcy cost-cutting strategy the
carrier says is necessary to compete
with rivals. Sources familiar with
American's plan said the job cuts
detailed by executives in a meeting with
labour groups yesterday would be part
of an overall effort to reduce operating
expenses by more than $2bn (1.27bn)
annually.
Buyout houses circle Iceland
Two buyout houses have placed bids for
frozen food retailer Iceland Foods, peo-
ple familiar with the matter said yester-
day, in an auction that the vendors hope
will value the business at around 1.5bn.
The bids from BC Partners and Bain
Capital are "aggressive" the people said,
although they did not indicate whether
supermarket chain Wm Morrison was
still in the process. Iceland chief execu-
tive Malcolm Walker has 42 days to
match the highest bid under the share-
holder agreement.
ANALYSIS l Ferrovial SA

26Jan 27Jan 30Jan 31 Jan 1 Feb

9.30
9.20
9.10
9.00
8.90
9.32
1 Feb
ANALYSIS l Sony Corp

26Jan 27Jan 30Jan 31 Jan 1 Feb

1,450
1,425
1,400
1,375
1,364
1 Feb
NASDAQ OMX Groups core profit
topped analysts expectations for the
fourth quarter yesterday, boosted by
a rise in revenue from market data
and technology, which helped offset
a soft trading environment.
Stock market volumes declined
from the elevated levels of the prior
quarter as volatility eased and
investors moved to the sidelines.
But the parent of the Nasdaq stock
market has diversified its revenues
through a number of small bolt-on
acquisitions over the years, and has
reaped the benefits.
Higher demand for its proprietary
data services helped drive the com-
panys market data revenue up 10
per cent, while market technology
revenue rose four per cent from a
year earlier due to recently delivered
projects.
Transaction fees, meanwhile,
slipped one per cent from a year ear-
lier and were down 13 per cent from
the prior quarter.
Nasdaq, which runs US and Nordic
markets, earned $82m (51.8m), or
45 cents per diluted share, in the
fourth quarter, down from $137m,
or 69 cents per share, a year ago.
Excluding one-time items associat-
ed with debt refinancing and merger
and strategic initiatives, it earned 63
cents a share, compared to 55 cents
in the year-prior quarter.
Revenue rose six per cent to
$422m, versus expectations of
$417.16m.
Nasdaq OMX
core profit tops
expectations
CAPITAL MARKETS

Stringer, pictured here with Rupert Murdoch, joined Sony in 1997 Picture: GETTY
Sir Howard, pictured with Will Smith, will step down as Sony chief Picture: GETTY
Sir Howard Stringer with David Frost (left) and Kunitake Ando (right) Picture: GETTY
You
can be
there!
Dont miss the chance to see, hear and feel the
excitement this summer. Be there to witness history
being made at the London 2012 Olympic Games,
with Prestige hospitality.
- Guaranteed official London 2012 tickets
- A world-class hospitality experience
- Packages from only 495pp (+VAT)
Availability is very limited contact an
advisor today to book your place at this
years ultimate sporting spectacle on
020 7936 5221
or rory.heron@prestigeticketing.london2012.com
This sensational three day event kicks off the weekend with
a fabulous corporate day offering world class polo from six
international teams, with fully inclusive hospitality plus the new
Veuve Clicquot at Hurlingham evening launch party.
Enjoy a classic British summer day out; three polo matches, Veuve
Clicquot Champagne, lunch at the iconic Hurlingham Club - the
historic home of polo - a quintessential afternoon cream tea and
to finish the day off, a rocking party with live music and guest DJs.
Prices start from just 185 plus VAT per person.
For more details or to book, telephone 0207 936 5284 or email:
rachel@cityevents.uk.com
Friday
City Friday & Polo Party
at MINT Polo In The Park
8
TH
JUNE 2012
The Best Corporate Day Out - as voted by CITY AM
Winner of Best Sports Attraction - London Lifestyle Awards 2010 & 2011
www.mintpolointhepark.com
THE HURLINGHAM CLUB & PARK
FULHAM, LONDON SW6
FRIDAY 8
TH
JUNE 2012
CITY FRIDAY & VEUVE CLICQUOT AT HURLINGHAM PARTY
KAZAKH mining group ENRC yester-
day revealed that output from its key
ferroalloys and iron ore divisions was
badly dented in the fourth quarter of
2011 by the need for emergency
repairs.
The London listed miner said pro-
duction of ferroalloys dropped in the
quarter, with the division suffering as
a furnace malfunctioned.
Saleable output dived by 10 per
cent to 360,000 tonnes in the fourth
quarter, and 2011 production overall
was down 2.9 per cent.
ENRC said the 82,500-tonne fur-
nace would be operating marginally
below full capacity in 2012 but would
not significantly affect full year out-
put numbers.
The miner was also hit by crusher
and railway issues in its iron ore divi-
sion. Primary concentrate production
was down 3.8 per cent but flat over
the full year, while saleable produc-
tion fell 6.6 per cent in the quarter
and five per cent over the year to 16m
tonnes.
Chief executive Felix Vulis said:
Although numbers for the year [are]
slightly less than we anticipated, we
are back to full capacity and demand
is there.
Vulis added he did not expect the
dip in output to affect the groups
financial results, due to be released
next month.
ENRCs production outside its core
commodities fared better, with ENRC
reporting higher copper, cobalt and
aluminium production levels.
ENRC output
hit by repairs
to equipment
JOHNSON Matthey, the worlds
largest supplier of catalytic converters
for vehicles, expects second-half prof-
its to be slightly ahead of the first,
after a third quarter boosted by
Chinese sales and North American
truck sales.
The British speciality chemicals
company said yesterday underlying
profit before tax rose 34 per cent to
104m in the quarter, in line with
analysts expectations despite market
volatility.
That was on the back of a 22 per-
cent rise in sales, as the group benefit-
ed from increased market share in
China after winning business from a
local producer for its pollution-curb-
ing converters, and a jump in North
American truck production.
The news sent its shares up 5.2 per
cent yesterday, making Johnson
Matthey a top gainer in a FTSE 100, as
investors welcomed a beat against the
implied consensus for full-year earn-
ings.
The group said the economic envi-
ronment in Europe, which accounts
for more than a third of its sales,
remained challenging, but demand
for its products, particularly in North
America, was holding up well. The
companys environmental technolo-
gies division also saw a sales lift.
COPPER miner Antofagasta aims to
increase production by more than
nine per cent this year, anticipating
slower output growth after an almost
23 per cent jump in 2011 when the
miner topped its targeted range,
thanks to the ramp up of its
Esperanza mine.
The FTSE 100-listed miner said cop-
per production in the fourth quarter
rose more than 13 per cent to 187,000
tonnes, making it the strongest three
months of the year, and helping 2011
output rise to 640,500 tonnes, just
above its target.
It is aiming for 2012 copper produc-
tion of 700,000 tonnes, below some
analysts expectations.
Copper production has dropped at
many of the industrys largest pro-
ducers over 2011, when mines were
hit by freak weather, strikes and
lower grades as projects mature.
China and US
help Johnson
Matthey sales
Antofagasta sees copper
production jump by 13pc
Chief executive Marcelo Awad is fighting to keep production levels up Picture: REUTERS
BY JOHN DUNNE
MINING

AUTOMOTIVE

News
18 CITYA.M. 2 FEBRUARY 2012
BY HARRY BANKS
MINING

ANALYSIS l Eurasian Natural Resources Corp PLC

p
26Jan 27Jan 30Jan 31 Jan 1 Feb
750
740
730
720
710
700
690
717.50
1 Feb
www.ballsbrothers.co.uk
MINSTER PAVEMENT MINCING LANE EC3R 7PP LONDON
Our new restaurant
is now open. Join us for lunch
Mon-Wed before 16th Feb and
get 50% off your food bill
Tables must be booked in advance.
Please call 020 7283 2838 or email
minster@ballsbrothers.co.uk
.
F
IN
D
U
S
O
N
:
Friday nights
at minster exchange
just got better
Join us for an unrivalled night of unbridled decadence
and 1920s hedonism. Live music, flapper hostesses,
giveaways, delicious canaps & cocktails.
Friday january 27
th
,
3
rd
, 10
th
& 24
th
February from 5
pm
Book a table to receive free cocktails & giveaways.
GLOBAL miner BHP Billiton yester-
day announced that it had offloaded
its stake in a South African titanium
operation to rival Rio Tinto.
The move marks the end of BHPs
participation in the titanium miner-
als industry.
BHP said it had exercised an
option to sell its 37 per cent stake in
Richard Bay Minerals to Rio Tinto,
with the final cost to be agreed by a
previously agreed valuation process.
Rios stake in Richard Bay will rise
to 74 per cent, Rio said in a separate
statement.
Chief executive Harry Kenyon-
Slane said: Doubling our stake in
the business solidifies our position
at a time when the long-term out-
look is strong and demand for high-
er grade titanium dioxide is
growing, driven by urbanisation and
rising environmental standards.
Separately BHP Billiton said it will
cut staff at its Nickel West unit in
Australia in response to weak metals
prices and the negative impact of a
strong Australian dollar.
BHP plans to reduce mine produc-
tion by 30 per cent at its Mt Keith
nickel mine in Western Australia
state for about a year and axe around
150 jobs, a company spokeswoman
said.
BHP Billiton
sells titanium
stake to Rio
BY JOHN DUNNE
MINING

UNITED Utilities, Britains largest

listed water utility, said yesterday it
was on track to deliver a good
underlying performance for the full
year.
In the first half of 2011-12, rev-
enue increased by around four per
cent, compared with the first half of
last year, and this trend is continu-
ing, the company said.
United Utilities added that infra-
structure expenditure for the sec-
ond-half would be higher than the
first-half, in line with its previous
expectations.
In November, the company report-
ed a dip in first-half profit due to
increased capital spending.
On Tuesday, industry regulator
Ofwat said the average household
water and sewerage bill in England
and Wales will rise by 5.7 per cent in
2012 as water companies gear up to
invest as much as 22bn over the
next five years.
In London, bills are set to surge by
6.7 per cent.
United Utilities said it was on
course to meet its 2011-12 regulatory
leakage target, and added water
resource levels were robust, with
reservoir stocks in excess of 90 per
cent.
United Utilities is on track for
full year with rising revenues
BY HARRY BANKS
RESOURCES

News
19 CITYA.M. 2 FEBRUARY 2012
NEWS | IN BRIEF
Range gets boost in Trinidad
Range Resources yesterday raised
proven estimates for its oil fields in
Trinidad by 490 per cent to 12.8m bar-
rels, following engineering studies on
the assets. Range, which is dual listed in
Australia and the UK, said work has
begun on spudding a third well at its
Texas North Chapman project, and that
its Beach Marcelle field has significant
volumes of crude remaining. It expects
to produce 1m to 1.5m barrels per year
using a water flood programme at the
site. The firms interests in oil fields pro-
duced 51,486 barrels in the three
months to December.
Borders starts Falklands drilling
Borders and Southern yesterday said it
had started drilling at its Darwin explo-
ration well in the Falklands. It is the
first in a series of exploration wells that
will test potentially large reservoir tar-
gets in the deeper water off the
Falkland Islands. The drill programme is
being carried out further south of the
area that Rockhopper Exploration and
Desire Petroleum have been exploring.
Borders said it had reached the point
when drilling could begin on the 61/17-1
Islands well. Operations are expected to
take around 45 days. The firms shares
closed up 4.8 per cent at 71p.
BHP is exiting
the titanium
business
Picture: REUTERS
ANALYSIS l Bhp Billiton PLC
p
26Jan 27Jan 30Jan 31 Jan 1 Feb
2,200
2,180
2,160
2,140
2,120
2,174.50
1 Feb
Montagu Evans
Steve Thomas has been appointed as
managing partner following the resigna-
tion of Clive Riding, who will become
property director of Native Land on 1
June. Riding joined Montagu Evans in
1993 and has been on the partnerships
managing committee for 16 years.
Jones Day
The law firm has expanded its Dubai
office by hiring Duane Keighran, who spe-
cialises in real estate projects across the
Middle East and North Africa.
Robert W Baird
Paul Bail has joined the wealth manage-
ment firm as a managing director in
London. He moves from Investec to lead
the debt advisory offering in Europe.
Baring AM
Baring Asset Management has expanded
its equities team by hiring Enakshi Roy as
investment manager, Latin American
equities. Roy joins Barings from Hermes,
where she was associate director, global
emerging markets.
SkyePharma
Axel Mueller has resigned as chief execu-
tive and a director of SkyePharma to
pursue other interests. Peter Grant, who
has been chief financial officer since
November 2006, becomes CEO in his
place, retaining responsibility for the
groups financial matters.
ArchCoal
The US-based coal firm has announced
its sales team ahead of its European
office opening on 1 March. Alexander
Newman is VP international, thermal
coal sales, Europe, and Wyn Davis is VP
of international metallurgical coal sales,
Europe. They join from Noble Group and
Anglo American respectively.
PuriCore
The life sciences company has appoint-
ed Michael Ashton as an independent
non-executive director. Ashton has
held top positions at Purepac, Faulding,
SkyePharma and LMA.
ICAS
Jann Brown, finance director of Cairn
Energy, has been elected as junior vice-
president of ICAS. She will succeed
current vice presidents Sir David
Tweedie and Brendan Nelson to
become ICAS president in April 2014.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
US stocks extend
gains on good data
U
S stocks extended Januarys
rally yesterday after upbeat
global manufacturing data
boosted sentiment and as
Greece neared a long-delayed deal
with private creditors.
The recent run of better-than-
expected economic data around the
world, though still not suggesting a
booming expansion, has helped lift
equity markets as investors move
away from a worst-case scenario for
the global economy.
An index of the US manufactur-
ing sector rose in January to its high-
est level since June, an industry
group said, while Chinas factory
sector expanded slightly, confound-
ing expectations for a contraction.
Germany recorded its first rise in
manufacturing output in four
months.
Optimism spurred gains in indus-
trials, financials and basic materi-
als, which rose between 1.1 per cent
and 1.7 per cent. Caterpillar, a com-
pany heavily exposed to global
industry, rose 1.3 per cent to $110.52
and was the biggest boost to the
Dow industrials.
Trading volume was higher than
it has been in recent days. Volume of
the NYSE, Amex, and Nasdaq was
7.8bn compared to its 20-day moving
average of 6.97bn. The wider partici-
pation comes after four down days
when market movements were min-
imal and volume generally light.
Stocks also got a boost after Greek
finance minister Evangelos
Venizelos said talks between Athens
and its private creditors were one
formal step away from a deal need-
ed to avoid a messy default. Such a
deal would be a significant step in
removing one of the biggest worries
for investors.
US and European banks rallied
on the news. Bank of America
gained 3.2 per cent to $7.36 and
Citigroup rose 2.9 per cent to $31.60.
The Dow Jones industrial average
gained 83.55 points, or 0.66 per cent,
to 12,716.46.
The Standard & Poors 500 Index
rose 11.67 points, or 0.89 per cent, to
1,324.08.
The Nasdaq Composite Index
climbed 34.43 points, or 1.22 per
cent, to 2,848.27.
Amazon slid 7.7 per cent to
$179.46 a day after the online retail-
er warned of a possible first-quarter
loss and posted a steep drop in
fourth-quarter profit.
According to Thomson Reuters
data, with 228 companies having
reported results, 61 per cent have
beaten expectations below the 70
per cent beat rate of recent quarters.
B
ULLISH company earnings
reports and the prospect of
Greece nearing a debt deal
helped lift Britains FTSE 100
higher yesterday, while robust manu-
facturing data from China, the US
and Europe boosted appetite for the
mining sector.
Londons blue chip index rose
109.11 points, or 1.9 per cent to
5,790.72. The index closed below
5,800, where traders said they were
seeing some technical resistance.
Banks were the top gainers as talk
among traders was that a debt-swap
deal for Greece could be imminent,
although no fresh news leaked out
into the ether.
The strength of this market at
present suggests that traders remain
relatively optimistic that some sort of
deal between Greece and its creditors
can be hammered out, said Ben
Critchley, a sales trader at IG Index.
Private sector creditors of Greece
could take a loss of more than 70 per
cent, while Greek finance minister
Evangelos Venizelos said the country
was one formal step away from clos-
ing a deal with private bondholders
to restructure 200bn of debt.
A deal for the debt-laden peripheral
Eurozone country would avoid a
messy default that could prove cata-
strophic for the financial system.
Lloyds Banking Group and Barclays
rose 5.2 and 5.4 per cent, respectively,
and the feelgood factor spread to the
bond market as yields on government
debt in Portugal, which investors
believe will be the next country to
need another bailout, fell after its lat-
est auction.
Shares in asset managers Man
Group and Schroders climbed 5.2 and
8.7 per cent, respectively, as a deal for
Greece would remove some of the
uncertainty which has dented mar-
kets and exacerbated fund outflows.
The uncertainty in the Eurozone
and the subsequent constraints on
market liquidity have hit profits at
ICAP, but the interdealer broker rose
7.7 per cent after it announced job
reductions and cut its full-year fore-
cast toward the upper end of analyst
forecasts.
Valuation also played a part, with
ICAP currently trading on a 12-month
price to earnings (PE) of 8.7 times and
down three per cent in 2012, com-
pared to the FTSE 100 on a PE around
10 times and up two per cent this
year, according to Thomson Reuters
Starmine data.
Oriel Securities said the shares look
oversold despite the earnings risks
given its PE and dividend yield
around 6.3 per cent.
Investors continue to reward com-
panies that have the capability of
increasing earnings in an austere eco-
nomic environment.
Rolls-Royce added 4.8 per cent as
BofA Merrill Lynch raised its earnings
estimates and target price for the
engines manufacturer.
BofA Merrill Lynch said Rolls-Royce
has structural long-term advantages
over its peers which are not fully
priced in at current levels, and lifted
its full-year 2012-2013 earnings per
share estimates by four to six per cent.
Heavily shorted Ocado rose 12.7 per
cent after the British online grocer
forecast first-quarter sales growth of
about 10 per cent, easing concerns
about its prospects after a profit
warning last month.
Johnson Matthey gained 5.3 per
cent after the worlds largest supplier
of catalytic converters said its second-
half earnings would be slightly
ahead of the first six months.
That prompted BofA Merrill Lynch
to raise its EPS forecasts and lift its
price target 14 per cent to 2,150p.
Strong earnings and Greek
hopes cause FTSE to jump
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Babcock International Group PLC
760
740
720
700
680
Dec Jan
p
740.50
1 Feb
BABCOCK INTERNATIONAL
Numis upgrades the engineering company from add to buy with a target
price of 870p after a management statement that was largely in line with
expectations. The broker expects organic growth of around five per cent for
the current year, which it sees as a strong performance when compared to
the rest of the UK. Numis expects a period of good growth as the companys
bid pipeline looks likely to bear fruit in the medium term.
ANALYSIS l Carpetright PLC
600
550
500
450
400
Dec Jan
p
602.50
1 Feb
CARPETRIGHT
Deutsche Bank has downgraded the retailer from hold to sell with an
unchanged target price of 420p following the companys third-quarter results
on Tuesday. The broker says the statement showed a useful improvement
versus the first half, but a lower-than-hoped recovery in gross margins means
profits are likely to come in below the projected 8m-12m range. Deutsche
lowers its profit forecast for the year to April 2012 from 8.8m to 7m.
ANALYSIS l Travis Perkins PLC
900
850
800
750
Dec Jan
p
920.00
1 Feb
TRAVIS PERKINS
Goldman Sachs has upgraded the builders merchant from sell to neutral
with a target price of 863p, and says that any investment negatives are
already priced into the stock. Since the broker added Travis Perkins to its
sell list last August, its shares are up 16 per cent, and Goldman no longer
sees a downside risk to consensus forecasts or the current pricing. Earning
per share growth estimates for 2012 now stand at -2.4 per cent.
p
27Jan 26Jan 30Jan 31 Jan 1 Feb
5,825
5,675
5,750
5,775
5,800
5,700
5,725
ANALYSIS l FTSE
5,790.72
1 Feb
Commonwealth Business Council
Sir Alan Collins, the UK Olympics ambassador
who helped win the Games for London in 2012,
has been appointed as director general of the
Commonwealth Business Council, the
Commonwealths agency for promoting trade
and investment. He will replace founding director
general Dr Mohan Kaul in April. Sir Alan served
as ambassador to the Philippines and as British
high commissioner to Singapore before taking up
the role of director general, trade and investment
USA and consul general New York.
News
20 CITYA.M. 2 FEBRUARY 2012
LON GD ONCE FIX AM...........1744.00 6.00
SILVER LDN FIX AM ..................33.88 0.54
MAPLE LEAF 1 OZ ....................36.36 0.55
LON PLATINUM AM................1611.00 -15.00
LON PALLADIUM AM...............693.00 -1.00
ALUMINIUM CASH .................2257.00 47.00
COPPER CASH ......................8484.50 86.50
LEAD CASH...........................2250.50 13.00
NICKEL CASH......................21125.00 -240.00
TIN CASH.............................24285.00 240.00
ZINC CASH ............................2125.00 30.00
BRENT SPOT INDEX ................111.69 0.66
SOYA .....................................1199.00 5.50
COCOA..................................2291.00 -14.00
COFFEE...................................215.05 0.40
KRUG.....................................1809.50 0.00
WHEAT ....................................167.05 -0.20
AIR LIQUIDE........................................97.56 1.34 100.65 80.90
ALLIANZ..............................................86.49 2.43 108.85 56.16
ANHEUS-BUSCH INBEV ....................47.06 0.70 48.63 33.85
ARCELORMITTAL...............................16.13 0.74 28.55 10.47
AXA......................................................12.27 0.67 16.16 7.88
BANCO SANTANDER...........................6.16 0.21 9.00 4.94
BASF SE..............................................59.89 1.11 70.22 42.19
BAYER.................................................54.40 0.86 59.44 35.36
BBVA......................................................6.89 0.22 9.17 4.94
BMW ....................................................67.99 2.60 73.85 43.49
BNP PARIBAS.....................................33.85 1.48 59.93 22.72
CARREFOUR ......................................17.90 0.45 31.98 14.66
CRH PLC .............................................15.50 0.36 17.40 10.28
DAIMLER.............................................43.85 1.61 57.22 29.02
DANONE..............................................47.98 0.79 53.16 41.92
DEU.BOERSE OFFRE ........................45.48 0.48 55.75 35.46
DEUTSCHE BANK..............................34.04 1.66 48.70 20.79
DEUTSCHE TELEKOM.........................8.68 0.08 11.38 7.88
E.ON.....................................................16.94 0.60 25.02 12.50
ENEL......................................................3.12 -0.00 4.86 2.78
ENI .......................................................17.14 0.24 18.66 11.83
FRANCE TELECOM............................11.56 0.09 16.65 11.09
GDF SUEZ ...........................................21.20 0.45 30.05 17.65
GENERALI ASS...................................12.16 0.23 17.05 10.34
IBERDROLA..........................................4.60 0.10 6.10 4.16
INDITEX ...............................................67.88 1.18 69.40 50.92
ING GROEP CVA...................................7.34 0.38 9.50 4.21
INTESA SANPAOLO.............................1.54 0.08 2.47 0.85
KON.PHILIPS ELECTR.......................15.70 0.25 24.12 12.01
L'OREAL..............................................82.70 1.39 91.24 68.83
LVMH..................................................126.80 3.20 132.65 94.16
MUNICH RE.......................................101.55 1.95 126.00 77.80
NOKIA....................................................3.92 0.10 8.49 3.33
REPSOL YPF.......................................20.89 -0.11 24.90 17.31
RWE.....................................................30.68 1.44 53.86 21.15
SAINT-GOBAIN...................................35.51 1.49 47.64 26.07
SANOFI ................................................56.35 -0.12 57.42 42.85
SAP......................................................46.81 0.62 46.90 32.88
SCHNEIDER ELECTRIC.....................48.26 0.78 61.83 35.00
SIEMENS .............................................73.13 0.99 99.39 62.13
SOCIETE GENERALE.........................21.57 1.21 52.70 14.32
TELECOM ITALIA..................................0.79 0.01 1.16 0.70
TELEFONICA ......................................13.50 0.17 18.75 12.50
TOTAL..................................................40.65 0.25 44.55 29.40
UNIBAIL-RODAMCO SE...................150.80 4.00 162.95 123.30
UNICREDIT............................................3.97 0.18 13.34 2.20
UNILEVER CVA...................................25.89 0.44 27.16 20.90
VINCI ....................................................36.12 0.66 45.48 28.46
VIVENDI ...............................................16.06 0.06 21.68 14.10
VOLKSWAGEN VORZ ......................138.65 3.30 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5790.72 109.11 1.92
FTSE 250 INDEX. . . . . . . . 11021.02 251.67 2.34
FTSE UK ALL SHARE . . . . 2990.34 57.43 1.96
FTSE AIMALL SH . . . . . . . . 766.44 5.97 0.79
DOWJONES INDUS 30 . . 12716.46 83.55 0.66
S&P 500 . . . . . . . . . . . . . . . 1324.08 11.67 0.89
NASDAQ COMPOSITE . . . 2848.27 34.43 1.22
FTSEUROFIRST 300 . . . . . 1057.08 20.03 1.93
NIKKEI 225 . . . . . . . . . . . . . 8809.79 7.28 0.08
DAX 30 PERFORMANCE. . 6616.64 157.73 2.44
CAC 40 . . . . . . . . . . . . . . . . 3367.46 68.91 2.09
SHANGHAI SE INDEX . . . . 2268.08 -24.53 -1.07
HANG SENG. . . . . . . . . . . 20333.37 -57.12 -0.28
S&P/ASX 20 INDEX . . . . . . 2543.30 0.00 0.00
ASX ALL ORDINARIES . . . 4291.00 0.00 0.00
BOVESPA SAO PAOLO. . 64567.18 1494.87 2.37
ISEQ OVERALL INDEX . . . 3068.34 60.55 2.01
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 873.98 18.81 2.20
SWISS MARKET INDEX. . . 6069.91 99.42 1.67
Price Chg %chg
3M........................................................87.35 0.64 98.19 68.63
ABBOTT LABS ...................................54.26 0.11 56.84 45.07
ALCOA ................................................10.20 0.04 18.47 8.45
ALTRIA GROUP..................................28.43 0.03 30.40 23.20
AMAZON.COM..................................179.46 -14.98 246.71 160.59
AMERICAN EXPRESS........................50.62 0.48 53.80 41.30
AMGEN INC.........................................69.84 1.91 69.95 47.66
APPLE...............................................456.19 -0.29 458.99 310.50
AT&T....................................................29.60 0.19 31.94 27.20
BANK OF AMERICA.............................7.36 0.23 14.95 4.92
BERKSHIRE HATAW B.......................78.66 0.29 87.65 65.35
BOEING CO.........................................75.37 1.19 80.65 56.01
CATERPILLAR..................................110.52 1.40 116.55 67.54
CHEVRON.........................................102.79 -0.33 110.99 86.68
CISCO SYSTEMS................................19.80 0.16 22.34 13.30
CITIGROUP.........................................31.60 0.88 49.60 21.40
COCA-COLA.......................................67.85 0.32 71.77 61.29
COMCAST CLASS A..........................26.85 0.27 27.17 19.19
CONOCOPHILLIPS.............................69.32 1.11 81.80 58.65
DU PONT(EI) DE NMR........................51.56 0.67 57.00 37.10
EXXON MOBIL....................................83.97 0.23 88.23 63.47
GENERAL ELECTRIC.........................18.77 0.06 21.65 14.02
GOLDMAN SACHS GRP ..................113.45 1.98 169.90 84.27
GOOGLE A........................................580.83 0.72 670.25 473.02
HEWLETT PACKARD.........................28.76 0.78 49.39 19.92
HOME DEPOT.....................................44.47 0.08 45.50 28.13
IBM.....................................................192.62 0.02 194.90 151.71
INTEL CORP .......................................26.55 0.13 27.00 19.16
J.P.MORGAN CHASE.........................37.60 0.30 48.36 27.85
JOHNSON & JOHNSON.....................65.69 -0.22 68.05 55.76
KRAFT FOODS A................................38.47 0.17 39.00 24.30
MC DONALD'S CORP ........................98.40 -0.65 102.22 72.89
MERCK AND CO. NEW......................38.63 0.36 39.43 29.47
MICROSOFT........................................29.89 0.36 30.05 23.65
OCCID. PETROLEUM.........................99.30 -0.47 117.89 66.36
ORACLE CORP...................................28.88 0.67 36.50 24.72
PEPSICO.............................................66.38 0.71 71.89 58.50
PFIZER ................................................21.31 -0.09 22.17 16.63
PHILIP MORRIS INTL .........................75.75 0.98 79.96 56.46
PROCTER AND GAMBLE ..................63.21 0.17 67.72 56.57
QUALCOMM INC ................................59.56 0.74 59.84 45.98
SCHLUMBERGER ..............................76.12 0.95 95.64 54.79
TRAVELERS CIES..............................59.27 0.97 64.17 45.97
UNITED TECHNOLOGIE ....................80.22 1.87 91.83 66.87
UNITEDHEALTH GROUP...................53.26 1.47 54.18 40.71
UPS CLASS B.....................................76.78 1.13 77.18 60.74
VERIZON COMMS ..............................37.80 0.14 40.48 32.28
WAL-MART STORES..........................62.18 0.82 62.63 48.31
WALT DISNEY CO ..............................39.33 0.43 44.34 28.19
WELLS FARGO & CO.........................29.89 0.68 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 ..................0.282 0.00
LIBOR Euro - 12 months ................1.720 0.00
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................1.090 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 .........................3.020 0.06
European repo rate.........................0.236 0.00
Euro Euribor ....................................0.396 0.00
The vix index ...................................18.22 -1.22
The baItic dry index ........................680.0 -22.0
Markit iBoxx...................................244.33 0.75
Markit iTraxx..................................143.40 -3.10
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .313.3 5.5 356.5 248.1
Chemring Group . . . .390.1 6.3 736.5 368.8
Cobham . . . . . . . . . . .186.7 3.6 236.5 165.9
Meggitt . . . . . . . . . . . .365.0 2.0 397.6 304.9
QinetiQ Group . . . . . .136.4 7.2 137.4 101.5
RoIIs-Royce HoIdi . . .770.5 35.0 774.5 557.5
Senior . . . . . . . . . . . . .188.1 8.1 190.6 132.6
UItra EIectronics . . .1565.0 33.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .215.5 5.9 245.0 157.0
BarcIays . . . . . . . . . . .224.1 11.6 333.6 138.9
HSBC HoIdings . . . . .541.9 12.2 730.9 463.5
LIoyds Banking Gr . . .32.2 1.6 69.3 21.8
RoyaI Bank of Sco . . .27.7 1.1 49.0 17.3
Standard Chartere .1565.0 31.0 1712.5 1169.5
AG Barr . . . . . . . . . .1250.0 50.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .355.3 11.3 449.2 289.9
Diageo . . . . . . . . . . .1432.0 30.0 1434.5 1112.0
SABMiIIer . . . . . . . . .2462.0 54.0 2462.0 1979.0
AZ EIectronic Mat . . .307.8 5.2 338.1 206.1
Croda Internation . .1950.0 15.0 2081.0 1456.0
EIementis . . . . . . . . . .161.1 7.8 187.4 107.5
Johnson Matthey . .2159.0 108.0 2161.0 1523.0
Victrex . . . . . . . . . . .1349.0 72.0 1590.0 1025.0
YuIe Catto & Co . . . . .197.5 1.6 253.0 148.0
C/$ 1.3193 0.0104
C/ 0.8323 0.0020
C/ 100.48 0.6492
/C 1.2014 0.0030
/$ 1.5845 0.0081
/ 120.73 0.4797
FTSE 100
5790.72
109.11
FTSE 250
11021.02
251.67
FTSE ALLSHARE
2990.34
57.43
DOW
12716.46
83.55
NASDAQ
2848.27
34.43
S&P 500
1324.08
11.67
RPC Group . . . . . . . .381.2 0.4 392.0 231.5
Smiths Group . . . . . .960.0 0.0 1429.0 869.5
Brown (N.) Group . . .232.8 2.8 304.5 225.9
Carpetright . . . . . . . . .602.5 52.5 770.5 375.0
Debenhams . . . . . . . . .70.5 2.7 74.8 51.2
Dignity . . . . . . . . . . . .789.5 9.5 854.5 648.5
Dixons RetaiI . . . . . . .13.6 -0.5 22.3 9.4
DuneImGroup . . . . . .468.0 9.0 524.5 383.9
HaIfords Group . . . . .324.5 5.5 411.4 268.6
Home RetaiI Group . .106.0 -1.4 235.0 72.5
Inchcape . . . . . . . . . .350.2 9.4 425.4 268.1
JD Sports Fashion . .723.0 8.0 1030.0 570.0
Kesa EIectricaIs . . . . .70.7 3.3 151.4 60.2
Kingfisher . . . . . . . . .266.4 10.7 287.1 217.0
Marks & Spencer G . .332.6 5.8 402.2 301.8
Next . . . . . . . . . . . . .2682.0 63.0 2810.0 1868.0
Sports Direct Int . . . .250.3 5.5 266.2 159.0
WH Smith . . . . . . . . . .559.0 7.0 567.0 433.8
Smith & Nephew . . . .612.5 -2.5 742.0 521.0
Synergy HeaIth . . . . .856.0 9.0 981.0 808.0
Barratt DeveIopme . .114.5 5.3 119.0 67.5
BeIIway . . . . . . . . . . . .758.0 21.0 776.5 540.5
BerkeIey Group Ho .1286.0 19.0 1360.0 885.0
BaIfour Beatty . . . . . .280.0 6.0 357.3 214.6
CRH . . . . . . . . . . . . .1287.0 28.0 1700.0 1053.0
GaIIiford Try . . . . . . . .486.0 9.5 530.0 309.0
Kier Group . . . . . . . .1391.0 51.0 1458.0 1097.0
Drax Group . . . . . . . .544.5 13.0 581.5 371.9
SSE . . . . . . . . . . . . . .1234.0 11.0 1423.0 1162.0
Domino Printing S . .601.5 8.5 705.0 434.3
HaIma . . . . . . . . . . . . .366.0 12.0 429.6 306.3
Laird . . . . . . . . . . . . . .168.9 1.3 207.0 127.9
Morgan CrucibIe C . .320.6 8.0 357.1 224.0
Oxford Instrument . .927.0 17.0 1010.0 600.5
Renishaw . . . . . . . . .1447.0 53.0 1886.0 800.0
Spectris . . . . . . . . . .1605.0 74.0 1679.0 1039.0
Aberforth SmaIIer . . .588.0 6.0 714.0 494.0
AIIiance Trust . . . . . .360.0 5.0 392.7 310.2
Bankers Inv Trust . . .398.0 4.8 428.0 346.5
BH GIobaI Ltd. GB .1165.0 16.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.5 0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.6 0.1 20.2 16.3
BH Macro Ltd. GBP 2024.0 -15.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.6 0.2 20.2 16.2
BIackRock WorId M .726.0 20.0 815.5 574.5
BIueCrest AIIBIue . . .162.7 0.2 176.2 162.4
British Assets Tr . . . .124.7 4.2 139.5 109.0
British Empire Se . . .443.9 5.2 533.0 404.0
CaIedonia Investm .1487.0 29.0 1825.0 1337.0
City of London In . . .290.5 4.9 306.9 257.0
Dexion AbsoIute L . .139.6 0.0 151.0 130.0
Edinburgh Dragon . .241.0 3.5 252.0 201.4
Edinburgh Inv Tru . . .479.3 2.3 492.2 414.9
EIectra Private E . . .1455.0 0.0 1755.0 1287.0
F&C Inv Trust . . . . . .300.3 4.6 327.9 261.5
FideIity China Sp . . . . .82.6 2.0 114.3 70.0
FideIity European . .1071.0 26.0 1287.0 912.0
HeraId Inv Trust . . . . .490.6 15.6 545.5 419.0
HICL Infrastructu . . . .118.2 0.5 121.3 112.7
Impax Environment . .98.8 0.9 125.4 88.5
John Laing Infras . . .109.4 0.4 109.6 103.4
JPMorgan American .907.0 12.5 924.0 721.5
JPMorgan Asian In . .200.0 2.1 244.0 170.1
JPMorgan Emerging .564.0 15.0 610.5 480.1
JPMorgan European .703.0 14.5 983.5 624.0
JPMorgan Indian I . . .376.8 9.3 459.0 313.1
JPMorgan Russian .558.5 16.0 741.0 415.1
Law Debenture Cor . .360.0 17.0 385.0 321.0
MercantiIe Inv Tr . . . .963.5 23.5 1137.0 823.0
Merchants Trust . . . .373.9 10.9 431.8 341.5
Monks Inv Trust . . . .324.8 5.1 367.9 298.1
Murray Income Tru . .644.5 15.5 673.0 568.0
Murray Internatio . . .956.0 11.5 991.5 818.5
PerpetuaI Income . . .262.6 7.3 276.0 236.5
PersonaI Assets T .34300.0 90.0 34320.030210.0
PoIar Cap TechnoI . .352.5 2.4 391.2 299.5
RIT CapitaI Partn . . .1244.0 34.0 1360.0 1173.0
Scottish Inv Trus . . . .475.6 20.5 524.0 417.0
Scottish Mortgage . .662.0 2.5 781.0 565.0
SVG CapitaI . . . . . . . .221.0 1.7 279.8 165.1
TempIe Bar Inv Tr . . .908.0 23.0 952.0 791.0
TempIeton Emergin .603.0 10.0 684.5 497.0
TR Property Inv T . . .155.1 4.0 206.1 136.2
TR Property Inv T . . . .64.0 0.7 94.0 59.8
Witan Inv Trust . . . . .472.0 9.8 533.0 401.5
3i Group . . . . . . . . . . .193.6 9.0 319.4 166.9
3i Infrastructure . . . .120.8 0.7 124.0 113.4
Aberdeen Asset Ma .250.0 11.1 250.5 167.8
Ashmore Group . . . .375.3 3.9 420.0 301.5
Brewin DoIphin Ho . .152.3 1.3 185.4 113.7
CameIIia . . . . . . . . . .9696.0 130.010950.0 8800.0
CharIes TayIor Co . . .126.5 -7.3 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .346.4 -5.0 450.0 304.3
CIose Brothers Gr . . .684.0 9.0 875.0 590.0
CoIIins Stewart H . . . .91.5 0.5 94.0 48.5
F&C Asset Managem .68.8 2.5 91.0 56.1
Hargreaves Lansdo .424.2 11.4 646.5 402.5
HeIphire Group . . . . . . .2.3 0.1 17.4 1.4
Henderson Group . . .113.0 2.1 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .362.0 26.0 556.5 311.6
IG Group HoIdings . .480.4 6.7 502.5 393.6
Intermediate Capi . . .292.6 17.6 354.7 197.9
InternationaI Per . . . .194.6 4.3 388.8 148.5
InternationaI Pub . . .121.1 0.5 121.5 108.6
Investec . . . . . . . . . . .394.6 18.9 522.0 318.4
IP Group . . . . . . . . . . .101.0 12.8 102.8 33.7
Jupiter Fund Mana . .234.6 7.0 337.3 184.9
Liontrust Asset M . . . .88.8 5.5 90.0 57.9
LMS CapitaI . . . . . . . . .56.5 0.0 64.8 51.5
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .917.0 47.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 0.0 19.8 8.9
Man Group . . . . . . . . .121.7 6.0 311.0 104.5
Paragon Group Of . .182.0 5.0 206.1 134.6
Provident Financi . . .979.0 20.0 1124.0 915.0
Rathbone Brothers .1189.0 44.0 1257.0 977.0
Record . . . . . . . . . . . . .12.0 0.5 35.5 11.2
RSM Tenon Group . . . .6.1 0.3 59.0 5.8
Schroders . . . . . . . .1576.0 126.0 1906.0 1183.0
Schroders (Non-Vo .1260.0 67.0 1554.0 970.0
TuIIett Prebon . . . . . .309.0 11.2 428.6 262.3
WaIker Crips Grou . . .44.0 0.0 51.5 44.0
BT Group . . . . . . . . . .206.5 3.0 208.8 161.0
CabIe & WireIess . . . .44.8 1.9 51.2 31.3
CabIe & WireIess . . . .20.8 0.1 76.9 14.2
COLT Group SA . . . . .93.0 1.0 156.2 84.1
KCOM Group . . . . . . . .74.3 3.2 84.0 57.5
TaIkTaIk TeIecom . . .124.0 1.0 160.6 119.8
TeIecomPIus . . . . . . .688.0 12.5 802.0 440.0
Booker Group . . . . . . .72.5 0.6 80.0 54.5
Greggs . . . . . . . . . . . .520.0 10.0 550.5 445.0
Morrison (Wm) Sup .286.1 0.1 328.0 268.5
Ocado Group . . . . . . . .98.2 11.1 285.0 52.9
Sainsbury (J) . . . . . . .294.0 5.6 391.2 263.5
Tesco . . . . . . . . . . . . .321.5 1.9 420.1 312.4
Associated Britis . . .1175.0 22.0 1178.0 940.0
Cranswick . . . . . . . . .805.0 25.0 862.0 588.5
Dairy Crest Group . . .323.7 10.2 409.7 311.0
Devro . . . . . . . . . . . . .275.4 9.2 296.9 223.5
Tate & LyIe . . . . . . . . .679.0 17.0 720.5 520.0
UniIever . . . . . . . . . .2085.0 39.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .522.5 17.5 664.0 413.5
Centrica . . . . . . . . . . .297.2 3.8 345.8 278.8
InternationaI Pow . . .338.7 3.3 427.0 279.4
NationaI Grid . . . . . . .634.0 2.0 649.5 543.5
Pennon Group . . . . . .703.0 7.5 737.5 584.5
Severn Trent . . . . . .1557.0 32.0 1600.0 1375.0
United UtiIities . . . . .609.0 7.0 637.0 550.0
Cookson Group . . . . .598.0 21.0 724.5 395.8
DS Smith . . . . . . . . . .231.1 4.2 266.2 164.4
Rexam . . . . . . . . . . . .380.1 6.1 400.0 299.8
Price Chg High Low
Bovis Homes Group .470.1 25.8 499.6 326.5
Persimmon . . . . . . . .533.0 6.5 534.5 374.0
Reckitt Benckiser . .3431.0 55.0 3578.0 3015.0
Redrow . . . . . . . . . . . .126.8 3.5 136.2 103.5
TayIor Wimpey . . . . . . .43.6 1.2 44.0 28.7
Bodycote . . . . . . . . . .320.4 15.3 397.7 225.6
Fenner . . . . . . . . . . . .459.2 17.9 462.0 280.0
IMI . . . . . . . . . . . . . . . .874.0 20.5 1119.0 636.5
MeIrose . . . . . . . . . . .377.8 1.8 382.9 268.0
Northgate . . . . . . . . . .241.3 14.6 346.7 190.9
Rotork . . . . . . . . . . .1935.0 34.0 1979.0 1501.0
Spirax-Sarco Engi . .2035.0 56.0 2063.0 1649.0
Weir Group . . . . . . .2022.0 67.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .456.0 7.6 460.0 315.0
Ferrexpo . . . . . . . . . . .350.1 9.6 499.0 238.7
TaIvivaara Mining . . .332.6 19.6 622.0 195.2
BBAAviation . . . . . . .193.9 7.5 240.8 156.0
Stobart Group Ltd . . .125.5 0.2 163.6 112.0
AdmiraI Group . . . . . .933.0 -8.0 1754.0 787.0
AmIin . . . . . . . . . . . . .339.1 -0.9 427.0 270.6
BeazIey . . . . . . . . . . . .143.9 3.7 144.0 109.6
Informa . . . . . . . . . . . .404.0 13.0 461.1 313.9
ITE Group . . . . . . . . . .206.9 2.2 258.2 157.7
ITV . . . . . . . . . . . . . . . . .75.3 0.4 93.5 51.7
Johnston Press . . . . . . .6.0 -0.2 12.8 4.1
MecomGroup . . . . . .211.0 -3.0 310.0 134.5
Moneysupermarket. .118.0 2.6 120.4 84.8
Pearson . . . . . . . . . .1186.0 13.0 1255.0 1013.0
PerformGroup . . . . .257.7 12.7 260.0 150.0
Reed EIsevier . . . . . .532.0 7.0 590.5 461.3
Rightmove . . . . . . . .1295.0 11.0 1408.0 843.5
STV Group . . . . . . . . . .91.0 0.0 168.0 76.3
Tarsus Group . . . . . .137.6 -0.9 165.0 119.5
Trinity Mirror . . . . . . . .46.8 0.5 89.5 37.5
UBM . . . . . . . . . . . . . .563.0 13.5 725.0 416.0
UTV Media . . . . . . . . .108.0 1.0 150.0 92.5
WiImington Group . . .79.3 -0.3 183.0 78.5
WPP . . . . . . . . . . . . . .760.5 15.0 846.5 578.0
YeII Group . . . . . . . . . . .6.0 0.2 11.0 3.4
African Barrick G . . .527.0 12.0 616.5 393.5
AIIied GoId Minin . . .139.8 7.2 281.3 34.4
AngIo American . . .2733.0 109.0 3437.0 2138.5
AngIo Pacific Gro . . .297.0 6.2 369.3 237.9
Antofagasta . . . . . . .1330.0 37.0 1524.0 900.5
Aquarius PIatinum . .167.2 -3.3 419.0 149.0
BHP BiIIiton . . . . . . .2174.5 51.5 2631.5 1667.0
CatIin Group Ltd. . . .407.5 2.1 421.4 334.0
Hiscox Ltd. . . . . . . . . .381.0 0.0 424.7 340.5
Jardine LIoyd Tho . . .688.5 6.5 764.5 576.0
Lancashire HoIdin . . .705.0 16.5 774.5 532.5
RSA Insurance Gro . .108.5 2.5 143.5 99.6
Aviva . . . . . . . . . . . . . .357.0 7.6 477.9 275.3
LegaI & GeneraI G . . .117.7 2.3 123.8 89.8
OId MutuaI . . . . . . . . .151.4 5.4 151.4 98.1
Phoenix Group HoI . .590.0 7.0 688.0 451.1
PrudentiaI . . . . . . . . .719.0 18.5 777.0 509.0
ResoIution Ltd. . . . . .274.9 1.8 316.1 229.5
St James's PIace . . . .358.6 8.6 376.0 294.0
Standard Life . . . . . . .223.5 5.7 244.7 172.0
4Imprint Group . . . . .262.0 2.0 295.0 200.0
Aegis Group . . . . . . .159.9 2.1 161.5 115.7
BIoomsbury PubIis . .110.0 3.0 138.0 91.3
British Sky Broad . . .682.0 -8.0 850.0 618.5
Centaur Media . . . . . . .35.8 -1.5 73.0 32.5
Chime Communicati .218.0 -0.8 298.5 163.0
Creston . . . . . . . . . . . .48.5 1.0 121.0 47.0
DaiIy MaiI and Ge . . .451.3 14.4 594.5 343.4
Euromoney Institu . .705.5 15.5 736.0 522.5
Future . . . . . . . . . . . . . .10.0 -0.4 30.0 8.3
Haynes PubIishing . .210.0 -5.0 257.0 205.0
Huntsworth . . . . . . . . .44.3 1.0 81.0 32.3
Bumi . . . . . . . . . . . . . .890.0 0.0 900.0 870.0
Centamin (DI) . . . . . . . .98.4 4.3 154.2 78.5
Eurasian NaturaI . . .717.5 27.0 1076.0 522.0
FresniIIo . . . . . . . . . .1806.0 70.0 2150.0 1302.0
GemDiamonds Ltd. .212.0 2.0 306.0 179.8
GIencore Internat . . .431.8 20.6 531.1 348.0
HochschiId Mining . .520.5 26.2 680.0 365.9
Kazakhmys . . . . . . .1191.0 55.0 1631.0 730.0
Kenmare Resources . .49.0 1.3 59.9 31.0
Lonmin . . . . . . . . . . .1060.0 28.0 1880.0 941.0
New WorId Resourc .462.5 3.1 1060.0 409.4
PetropavIovsk . . . . . .788.0 31.5 1090.0 543.5
PoIymetaI Interna . .1155.0 18.0 1160.0 877.0
RandgoId Resource 7300.0 135.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3912.0 107.0 4712.0 2712.5
Vedanta Resources 1251.0 56.0 2518.0 928.0
Xstrata . . . . . . . . . . .1119.5 45.0 1550.0 764.0
Inmarsat . . . . . . . . . . .402.0 1.6 719.5 389.3
Vodafone Group . . . .170.6 -0.3 182.8 155.1
Genesis Emerging . .502.5 7.5 548.5 424.0
Afren . . . . . . . . . . . . . .123.8 3.3 171.2 73.6
BG Group . . . . . . . . .1445.5 20.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .483.0 12.2 497.5 363.2
Cairn Energy . . . . . . .292.0 10.2 469.7 257.8
EnQuest . . . . . . . . . . .109.1 2.7 158.5 85.7
Essar Energy . . . . . .132.0 2.8 537.0 120.0
ExiIIon Energy . . . . . .252.8 2.8 469.7 184.2
Heritage OiI . . . . . . . .197.1 9.6 332.2 160.0
Ophir Energy . . . . . . .295.1 0.8 318.8 184.5
Premier OiI . . . . . . . . .409.1 -1.8 535.0 310.0
RoyaI Dutch SheII . .2268.5 28.0 2402.0 1883.5
RoyaI Dutch SheII . .2326.0 17.5 2489.0 1890.5
SaIamander Energy .228.1 0.1 317.6 182.3
Soco Internationa . . .300.2 8.5 400.0 278.0
TuIIow OiI . . . . . . . . .1416.0 26.0 1493.0 945.5
Amec . . . . . . . . . . . .1021.0 17.0 1251.0 740.5
Hunting . . . . . . . . . . .815.5 9.5 843.0 530.0
Kentz Corporation . .473.0 29.0 508.0 347.0
LampreII . . . . . . . . . . .321.1 21.6 395.2 220.7
Petrofac Ltd. . . . . . .1450.0 -5.0 1608.0 1108.0
Wood Group (John) .664.5 6.5 715.8 469.9
Burberry Group . . . .1407.0 65.0 1600.0 1092.0
PZ Cussons . . . . . . . .312.4 7.2 387.9 285.0
Supergroup . . . . . . . .655.0 5.0 1820.0 435.2
AstraZeneca . . . . . .3089.5 35.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .338.0 3.7 338.5 210.1
Genus . . . . . . . . . . . .1037.0 18.0 1111.0 853.5
GIaxoSmithKIine . . .1424.5 14.5 1497.0 1127.5
Hikma Pharmaceuti .710.0 -8.0 869.0 555.5
Shire PIc . . . . . . . . . .2106.0 0.0 2243.0 1634.0
CapitaI & Countie . . .194.3 4.4 203.7 142.8
Daejan HoIdings . . .3010.0 198.0 3010.0 2282.0
F&C CommerciaI Pr .103.9 0.3 108.0 92.6
Grainger . . . . . . . . . . .104.0 5.0 133.2 77.3
London & Stamford .105.0 0.0 140.0 103.5
SaviIIs . . . . . . . . . . . . .361.2 25.2 427.1 256.2
UK CommerciaI Pro . .74.4 -0.1 85.5 65.1
Unite Group . . . . . . . .188.6 10.6 224.1 152.9
Big YeIIow Group . . .295.0 15.2 344.4 218.0
British Land Co . . . . .496.3 7.7 629.5 444.0
CapitaI Shopping . . .330.0 6.8 408.6 288.7
Derwent London . . .1748.0 75.0 1880.0 1400.0
Great PortIand Es . . .368.8 8.5 445.0 312.9
Hammerson . . . . . . . .377.9 0.8 490.9 345.2
Hansteen HoIdings . . .72.8 -0.7 89.5 68.0
Land Securities G . . .679.0 4.5 885.0 612.0
SEGRO . . . . . . . . . . . .223.0 3.2 331.3 195.0
Shaftesbury . . . . . . . .516.5 16.0 539.0 436.8
Aveva Group . . . . . .1638.0 61.0 1799.0 1298.0
Computacenter . . . . .412.6 15.1 490.0 324.7
Fidessa Group . . . . .1674.0 15.0 2109.0 1444.0
Invensys . . . . . . . . . . .203.6 1.4 357.8 180.9
Logica . . . . . . . . . . . . .76.4 0.6 147.2 59.0
Micro Focus Inter . . .442.3 19.6 455.0 242.9
Misys . . . . . . . . . . . . .321.2 -1.9 420.2 214.9
Sage Group . . . . . . . .296.6 3.5 310.1 231.7
SDL . . . . . . . . . . . . . . .670.0 21.0 711.5 586.0
TeIecity Group . . . . . .660.0 13.0 666.0 450.5
Aggreko . . . . . . . . . .2123.0 28.0 2139.0 1394.5
Ashtead Group . . . . .243.0 7.8 246.4 99.4
Atkins (WS) . . . . . . . .724.0 23.0 820.0 490.2
Babcock Internati . . .740.5 11.0 758.0 542.0
Berendsen . . . . . . . . .467.5 6.8 568.0 402.7
BunzI . . . . . . . . . . . . .873.0 12.0 906.5 676.5
Cape . . . . . . . . . . . . . .401.0 9.2 591.5 295.0
Capita . . . . . . . . . . . . .625.0 10.0 786.5 608.0
CariIIion . . . . . . . . . . .314.6 5.7 403.2 281.0
De La Rue . . . . . . . . .941.0 4.5 968.0 679.5
DipIoma . . . . . . . . . . .425.5 31.5 432.0 263.5
EIectrocomponents .228.0 12.4 294.9 182.2
Experian . . . . . . . . . . .874.0 14.5 902.5 665.0
FiItrona PLC . . . . . . . .386.1 7.1 404.5 280.0
G4S . . . . . . . . . . . . . . .270.8 1.3 291.0 219.9
Hays . . . . . . . . . . . . . . .74.1 2.8 130.0 58.9
Homeserve . . . . . . . .292.4 8.5 532.0 218.5
Howden Joinery Gr . .109.2 1.8 127.5 93.1
Interserve . . . . . . . . . .296.7 6.2 341.3 239.8
Intertek Group . . . . .2152.0 40.0 2152.0 1738.0
MichaeI Page Inte . . .418.4 29.3 567.0 323.0
Mitie Group . . . . . . . .258.4 3.9 271.0 195.9
PayPoint . . . . . . . . . . .570.5 17.5 585.0 327.3
Premier FarneII . . . . .216.2 9.4 308.8 144.5
Regus . . . . . . . . . . . . . .99.4 7.4 119.0 64.0
RentokiI InitiaI . . . . . . .75.1 0.0 103.4 58.2
RPS Group . . . . . . . . .220.1 11.6 253.0 156.6
Serco Group . . . . . . .514.0 6.0 618.5 458.0
Shanks Group . . . . . . .99.9 1.5 130.9 90.8
SIG . . . . . . . . . . . . . . .103.6 4.0 153.5 77.0
Travis Perkins . . . . . .920.0 43.0 1090.0 715.0
WoIseIey . . . . . . . . .2245.0 48.0 2274.0 1404.0
ARM HoIdings . . . . . .592.5 -17.0 651.0 464.0
CSR . . . . . . . . . . . . . .231.0 -0.7 447.0 154.1
Imagination Techn . .591.0 13.0 595.0 296.9
Spirent Communica .120.7 1.9 160.0 105.8
British American . .2996.5 79.5 3079.0 2300.0
ImperiaI Tobacco . .2303.0 33.0 2444.0 1794.0
Betfair Group . . . . . . .879.5 8.5 1030.0 567.0
Bwin.party Digita . . .161.9 1.5 204.0 100.6
CarnivaI . . . . . . . . . .1906.0 16.0 2983.0 1742.0
Compass Group . . . .601.0 12.0 619.5 512.5
Domino's Pizza UK . .462.0 4.4 549.0 377.0
easyJet . . . . . . . . . . . .447.4 1.0 457.9 301.0
FirstGroup . . . . . . . . .316.5 6.5 379.1 301.8
Go-Ahead Group . . .1289.0 20.0 1598.0 1190.0
Greene King . . . . . . .510.5 18.4 520.5 410.0
InterContinentaI . . .1334.0 42.0 1435.0 955.0
InternationaI Con . . .183.5 6.3 268.1 132.0
JD Wetherspoon . . . .411.7 4.6 468.3 380.5
Ladbrokes . . . . . . . . .144.1 2.4 155.3 114.0
Marston's . . . . . . . . . . .98.3 1.3 112.0 84.6
MiIIennium& Copt . .457.0 12.0 600.5 371.2
MitcheIIs & ButIe . . . .262.4 5.7 348.7 215.6
NationaI Express . . .222.9 6.0 270.2 201.6
Rank Group . . . . . . . .138.0 6.3 153.7 109.5
Restaurant Group . . .305.9 9.3 335.0 254.9
Spirit Pub Compan . . .50.5 0.5 55.0 35.3
Stagecoach Group . .287.4 6.1 291.0 200.0
TUI TraveI . . . . . . . . . .194.5 3.2 251.5 136.7
Whitbread . . . . . . . .1664.0 20.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .229.2 4.5 244.1 176.8
Abcam . . . . . . . . . . . .334.0 -1.0 460.0 320.0
Advanced MedicaI . . .89.3 3.3 96.0 64.8
AIbemarIe & Bond . .347.0 5.5 400.1 281.0
Amerisur Resource . .18.5 -0.3 29.0 9.5
Andor TechnoIogy . .580.0 20.0 685.0 387.1
ArchipeIago Resou . . .68.5 -0.5 79.0 55.5
ASOS . . . . . . . . . . . .1777.0 57.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.3 -0.3 92.0 16.0
Avanti Communicat .283.3 -1.8 628.0 248.5
BIinkx . . . . . . . . . . . . . .67.3 0.3 158.0 50.5
Borders & Souther . . .71.0 3.3 73.3 43.5
BowLeven . . . . . . . . . .81.0 2.3 382.3 62.0
Brooks MacdonaId .1130.0 -2.5 1372.5 940.0
Cove Energy . . . . . . .136.5 0.5 138.8 61.0
Daisy Group . . . . . . .104.5 2.0 127.0 88.0
EMIS Group . . . . . . . .447.5 7.5 580.0 397.5
Faroe PetroIeum . . . .170.0 2.8 205.0 130.0
GuIfsands PetroIe . . .173.8 -0.3 342.0 142.5
GWPharmaceuticaI . .91.0 -2.4 130.0 78.5
H&T Group . . . . . . . . .345.0 0.0 395.0 277.0
Hargreaves Servic .1165.0 10.0 1180.0 855.0
HeaIthcare Locums . . . .3.0 -0.2 3.4 3.0
Immunodiagnostic . .374.0 -5.0 1218.0 288.8
ImpeIIamGroup . . . .243.0 0.0 387.5 195.0
Iomart Group . . . . . . .138.3 0.3 139.5 85.5
James HaIstead . . . . .472.5 -7.3 495.0 410.0
KaIahari MineraIs . . .242.8 0.5 301.0 198.3
London Mining . . . . .286.3 15.8 436.5 257.5
Lupus CapitaI . . . . . .129.0 7.5 150.0 86.0
M. P. Evans Group . .443.5 1.5 475.0 371.0
Majestic Wine . . . . . .418.0 20.0 510.0 315.0
May Gurney Integr . .290.0 2.4 302.0 234.0
Monitise . . . . . . . . . . . .28.5 0.8 40.0 20.5
MuIberry Group . . . .1885.0 55.0 1920.0 1065.0
Nanoco Group . . . . . . .62.0 -0.5 93.3 38.0
NauticaI PetroIeu . . .329.3 4.5 547.0 223.5
NichoIs . . . . . . . . . . . .602.5 3.8 615.0 410.0
Numis Corporation . . .94.5 -4.0 126.0 72.0
Pan African Resou . . .17.4 0.1 17.8 9.5
Patagonia GoId . . . . . .43.8 0.8 70.0 37.3
Prezzo . . . . . . . . . . . . .68.0 1.3 71.5 53.5
Pursuit Dynamics . . .100.5 -1.5 410.0 67.0
Rockhopper ExpIor .343.8 3.5 386.0 141.0
RWS HoIdings . . . . . .451.0 -1.5 481.6 328.0
Secure Trust Bank .1005.0 10.0 1010.0 755.0
Songbird Estates . . .107.5 -1.5 160.3 104.0
VaIiant PetroIeum . . .419.3 3.0 645.0 400.0
Young & Co's Brew . .633.5 -1.5 712.0 565.0
Ocado Group . . . . . . . .87.1 8.6
Home RetaiI Group . .107.4 8.6
New WorId Resource 459.4 6.1
ExiIIon Energy . . . . . .250.0 5.4
AdmiraI Group . . . . . .941.0 5.2
RPS Group . . . . . . . . .208.5 5.0
CabIe & WireIess C . . .42.9 5.0
NationaI Express G . .216.9 4.1
British Sky Broadc . .690.0 3.7
LampreII . . . . . . . . . . .299.5 3.7
Carpetright . . . . . . . .550.0 -10.9
Dixons RetaiI . . . . . . .14.1 -7.5
SDL . . . . . . . . . . . . . . .649.0 -5.8
Regus . . . . . . . . . . . . . .92.0 -5.3
AIIied GoId Mining . .132.6 -4.9
Aquarius PIatinum . .170.5 -4.9
TR Property Inv Tr . . . .63.3 -2.6
Paragon Group Of C .177.0 -2.3
Scottish Inv Trust . . .455.1 -2.2
FresniIIo . . . . . . . . . .1736.0 -2.2
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.42 -0.04 104.5 100.4
Tsy 5.250 12 . . . .101.68 -0.01 105.8 101.6
Tsy 9.000 12 . . . .103.75 -0.61 111.9 103.3
Tsy 4.500 13 . . . .104.49 0.00 106.6 104.4
Tsy 2.500 13 . . . .283.26 -0.01 287.7 279.0
Tsy 8.000 13 . . . . .112.52 0.01 117.3 112.4
Tsy 5.000 14 . . . . .111.95 0.02 112.9 109.2
Tsy 8.000 15 . . . .128.12 0.02 129.2 123.7
Tsy 7.750 15 . . . .100.00 0.00 106.6 99.4
Tsy 4.750 15 . . . . .114.96 0.01 115.4 108.6
Tsy 4.000 16 . . . . .114.25 0.06 114.7 104.9
Tsy 2.500 16 . . . .343.34 0.05 346.7 312.1
Tsy 1.250 17 . . . . .116.10 0.07 116.6 106.7
Tsy 12.000 17 . . .121.34 0.00 129.3 120.9
Tsy 8.750 17 . . . .141.41 -0.24 141.9 132.9
Tsy 5.000 18 . . . .122.37 0.08 122.5 109.7
Tsy 4.500 19 . . . .120.68 0.12 120.7 105.4
Tsy 3.750 19 . . . . .115.59 0.16 115.6 99.4
Tsy 2.500 20 . . . .365.48 0.10 367.1 314.0
Tsy 4.750 20 . . . .123.38 0.16 123.5 106.6
Tsy 8.000 21 . . . .152.93 0.15 153.4 133.8
Tsy 4.000 22 . . . . .117.84 0.15 118.2 99.0
Tsy 1.875 22 . . . .127.57 0.09 129.1 111.3
Tsy 2.500 24 . . . .330.36 0.15 334.7 275.6
Tsy 5.000 25 . . . .130.18 0.23 130.6 107.4
Tsy 4.250 27 . . . .122.25 0.33 122.7 97.9
Tsy 1.250 27 . . . .124.74 0.28 127.0 104.8
Tsy 6.000 28 . . . .147.48 0.31 148.0 119.5
Tsy 4.750 30 . . . .129.87 0.58 130.5 103.0
Tsy 4.125 30 . . . .318.70 0.43 322.8 262.9
Tsy 4.250 32 . . . .122.36 0.59 123.1 96.0
Tsy 4.250 36 . . . . .123.11 0.66 123.9 95.0
Tsy 4.750 38 . . . .133.04 0.68 134.2 102.8
Tsy 4.500 42 . . . .129.79 0.87 130.8 98.9
% %
CITYA.M. 2 FEBRUARY 2012 21
Wealth Management | ISAs
F
OR a long time it was taboo to suggest the
Eurozone would collapse now people
write and talk of little else. Currency
break-up is inevitable, but despite the
twists and turns a workable solution isnt in
sight. Although its impossible to predict the
precise outcome, previous monetary unions
offer insights into what went wrong and how
things could develop once the dust settles.
As an enthusiast for closer economic rela-
tions within Europe, I helped prepare the way
for European monetary union (EMU). The dis-
appointing 1995 Green Paper led to the euro
being introduced without a bailout rule, but
no provision for exit; a Stability and Growth
Pact, but no means of enforcing it; a legal
structure, which blocks any solution; and no
provision whatsoever for dealing with asym-
metric shocks. I did not know when and in
what form the crisis would come but it was
certain.
It came sooner than I expected, precipitated
by the more general crisis, but caused by the
convergence of interest rates. The apparent
benefit of cheap credit to the weaker countries
proved to be a dangerous trap, leading to over-
borrowing in Greece and an unsustainable
property bubble in Ireland.
There have since been a series of botched ini-
tiatives. The European Financial Stability Fund
aimed to package lower grade (sub prime) debt
into tranches to achieve AAA status. Financial
markets have short memories, but not that
short. Eurobonds collectively guaranteed by
member states would also fail to have the rat-
ing assumed: indeed, several countries have
since been downgraded. The idea of a fiscal
union is half-baked: falling short politically,
but going beyond economically, a true federal
union. Fiscal discipline will mean in practice
cutting expenditure and the only real alterna-
tive to devaluation is deflation, which is work-
ing fairly well in Ireland, but would cause a
massive recession in the whole of the EU.
As such, we are heading for a two-speed
Europe. Some countries, under the leadership
of Germany will form a closer union, with oth-
ers opting out of the euro, defaulting, recon-
structing their debt and or devaluing.
LEARNING FROM UNIONS
Most of the interesting previous monetary
unions the Soviet Union, Austria Hungary,
the former Yugoslavia collapsed at a time of
hyper-inflation. But there are useful lessons
from two other unions: Bretton Woods and the
Sterling area.
The Bretton Woods approach involved ini-
tially fixed exchange rates bolstered by interna-
tional transfers negotiated by the International
Monetary Fund (IMF), but with the right and
indeed the obligation to change the rate
when there was a fundamental disequilibri-
um. There were many examples of this often
in Latin America. The original design of EMU
should have included such a workable propos-
al for exit. The question is: can we revert to
this? The essential first step is to make it
absolutely clear that each member state is
responsible for its own debts. They could then
make their own arrangements, on the classic
gold standard procedures, for maintaining
external balance, and there could be a living
will procedure for dealing with the inevitable
occasional default in a less damaging way.
Convergence would cease to be an intelligent
tactic for investors if it ever was and interest
rates on each countrys debt would reflect
investor perception of its government actions,
giving early warning of trouble.
The Sterling area, being informal, worked
well for many years, but because of that, quiet-
ly fell apart when it became less relevant. The
only monetary authority was the Bank of
England. Others had neither any say in UK
monetary policy, nor after they ceased to be
colonies any obligation to follow it. But they
had, in the areas heyday, strong incentives to
remain in the club, which had substantial ben-
efits, including freedom from exchange con-
trol.
The early leavers, such as New Zealand,
introduced its own currency without any
immediate or expected change in parity. This
arrangement had some similarities to the
Currency Boards used in the old colonies,
which could be an alternative for smaller EU
members.
The same result could have been achieved
economically but certainly not politically
by countries accepting Germanys Bundesbank
as the monetary authority, voluntarily adopt-
ing their currency. This is what Estonia did
very successfully. Note issues and the monetary
base would be the responsibility of the Central
Bank or Currency Board of the country con-
cerned.
Countries which leave the Eurozone and oth-
ers even outside the EU might well find
that the new euro becomes widely used as a
secondary currency, creating the partial advan-
tages of our old 1989 proposal to introduce a
basket European currency unit as a second-
ary currency. It may even become the currency
of choice for internal contracts; a role the US
dollar once had. This might reach the stage
when they would accept euroisation and
partly or wholly abandon their own currencies.
John Chown is principal in Chown Dewhurst and a
co-founder of the Institute for Fiscal Studies. He dis-
cusses the themes of this article in more detail in a
paper released today by the Adam Smith Institute: The
Future of European Monetary Union.
22
The Forum
CITYA.M. 2 FEBRUARY 2012
Some countries, under the
leadership of Germany will
form a closer union
The Eurozone will implode,
but it isnt too late to learn
from past monetary unions
cityam.com/forum
JOHN CHOWN
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.
23
History shows
guilds arent the
golden solution
Apprenticeships
in Britain plainly
have not worked
P
OLITICIANS faced by persistent social
problems often dream of reviving old
institutions. Youth unemployment in
Britain recently passed 1m. No surprise,
then, that historical solutions are being pro-
posed for the UKs present day problems with
youth training. Politicians of all stripes believe
that increasing access to apprenticeships will
turn those young people not in employment,
education or training into industrious young
workers. The government is even considering
reviving the role of Londons livery compa-
nies, the citys ancient guilds of craftsmen, to
improve the status of apprenticeships.
But apprenticeship in old London town was
not as appealing as many imagine. Our recent
research on apprenticeship in seventeenth
and eighteenth century London shows that
on-the-job training was often far less success-
ful than stories of Dick Whittingtons extraor-
dinary ascent through hard graft and luck
from poverty, to become Lord Mayor of
London in the 1390s, suggests. Dick was not
even an apprentice.
Apprenticeship within the livery compa-
nies offers cold comfort for modern Britains
ills. It was unstable. Around half of appren-
tices in the 1600s left their employer before
finishing their contract, a failure rate that
would today lead a school or university to be
shut down. It was expensive. Children from
poor families could afford places to train in
manual crafts such as tailoring and carpentry.
But masters demanded hundreds of pounds
for accepting an apprentice who wanted to
become a merchant or professional. And it
was inefficient. Regulations meant that
apprenticeships dragged on for at least seven
years. Once training was liberalised in the
nineteenth century, terms fell quickly and
completion rates went up.
Apprenticeship was certainly important in
pre-industrial Britain. It was the main way in
which youths acquired skills. Around one in
ten English teenage males started an appren-
ticeship in London in 1700. But it is easy to for-
get that they had little choice. Elizabethan
laws meant that a seven-year apprenticeship
was in theory required to work in most jobs
outside of farming. This was an idea that was
borrowed from Londons Livery Companies,
which had been controlling apprenticeship in
the city for centuries. And the Livery
Companies main interest was not improving
quality, but in limiting numbers to keep their
members earnings up.
After last summers riots, David Cameron
renewed his call for young people to be given
worthwhile employment and training. But he
should take heed. Londons apprentices were
a troublesome bunch. In 1517, apprentices led
riots against foreigners in London. Thirteen
were later executed for treason. Apprentices
rioting in the 1640s even helped eject the
King, and in 1647 apprentices briefly took
control of the Houses of Parliament and
purged it of politicians who were ignoring
their demands for an extra holiday.
Britains historic apprenticeship system,
with its combination of national laws and
local guilds, offers a warning against the dan-
gers of regulation, no matter how well-inten-
tioned. Apprenticeship in the past worked in
spite of the guilds, not because of them, as
youths and their families worked out deals
that allowed them to overcome the restrictive-
ness of training regulations. The government
is right to try and find ways to get more young
people into work and training that has real
value. But apprenticeships and guilds are not
the panacea that the government thinks.
Dr Chris Minns and Dr Patrick Wallis are lecturers
at the London School of Economics.
A critical state
George Osborne commented on
the loss of Fred Goodwins
knighthood by stating RBS
came to symbolise everything
that went wrong in the British
economy in the last decade.
This is a perplexing statement
from the man charged with sort-
ing out the public finances.
The years of artificially low
interest rates that provided a
huge bubble of cheap and easy
credit is not a minor side story
or a simple detail. Nor were the
swathes of planning and employ-
ment regulations. Furthermore,
surely the issuance of innumer-
able stealth taxes to fund an
ever larger state and public sec-
tor cannot be forgotten on
account of a bank that should
not have been bailed out in the
first place.
Osborne has not understood the
cause of the financial crisis.
Amul Pandya
Chairman, I on the Future,
Institute of Economic Affairs
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
CHRIS MINNS &
PATRICK WALLIS
CITYA.M. 2 FEBRUARY 2012
The Forum
I
T COST Mitt
Romney approxi-
mately $16m to
win Floridas 50
delegates. The one thing
he couldnt afford in
Florida was defeat. But
Romney didnt just come
back from a double-digit
poll deficit he did something much more impressive.
Newt Gingrich remarked that a strong second would
save his totally unique campaign. With a landslide
victory, Romney even robbed Gingrich of that.
Florida was not for the faint-hearted. In all, 92 per
cent of campaign ads in Florida were negative.
Gingrich was regularly crying foul play, accusing
Romney of carpet bombing him with attack ads.
There was some truth to this and Romney certainly
outspent him. But Gingrichs attacks were just as, if
not more, personal.
Ultimately Gingrich undermined his own brand. As
a candidate who has built his reputation as a com-
bative conservative, he looked weak when repeatedly
asking Romney to play fair. He reverted to the same
tired attacks on private equity and Wall Street. His
debate performances were not just flat, they were
dismal. 87 per cent of Republicans stated that the
debates impacted their decision. Not surprisingly,
Romney was the beneficiary.
In defeat, Gingrich was defiant as ever. Hell cer-
tainly launch an aggressive counterattack, likely
through his super pollical action committee (PAC).
But his other challenge will be to convince his finan-
cial backers to send more cheques, even if they have
to wait until super Tuesday on 6 March for more
favourable returns. Februarys schedule favours
Romney. The question has always been whether it
would be Romneys lifeline or the start of a victory
lap. With almost $20m in the bank, its looking like
the latter.
Of the six contests Missouris primary is merely
symbolic in February (Nevada, Maine, Colorado,
Minnesota, Michigan, Arizona), Romney won all but
one in 2008, missing out to John McCain in the sen-
ators home state of Arizona. Romney has picked up
the senators endorsement, but his greatest asset
may well be his tough stance on illegal immigration,
an issue consistently ranked as one of the most
important to voters in the state. A sweep in February
is entirely possible.
Ron Paul participated in Floridas debates, but his
strategy has always been to look ahead to Februarys
caucuses. He will continue to fight on and may well
be the main benefactor of some tactical voting in the
Virginia primary on 6 March. Only he and Romney
got enough signatures to contest the ballot in the Old
Dominion. Rick Santorum just opened a new cam-
paign headquarters in Nevada and appears to have
no plans to drop out. But its hard to see where his
campaign goes from here.
Gingrich has pledged to take his campaign to the
convention, adding that the protracted Obama-
Clinton battle in 2008 proved that theres no reason
that a long campaign has to be a bad thing. This is
only true if your opponents campaign machine fails
to take advantage. Ask Jimmy Carter if Ted Kennedy
helped his re-election bid in 1980. If Romney pulls
significantly ahead and Gingrich still refuses to drop
out, the Republican Party will have a major problem
on its hands. For Gingrich will no longer be running
to win the presidency, but to ensure Romney loses it.
And thats Barack Obamas job.
Ewan Watt is a Washington, DC-based consult-
ant. You can follow him on @ewancwatt
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
Romney will be hoping
victory comes swiftly
US ELECTIONS
BY EWAN WATT
Lifestyle | Tech
24 CITYA.M. 2 FEBRUARY 2012
utopia of ultra-laissez faire economics,
where scientists and artists were
excused from moral restraints. The third
instalment sees the franchise move from
its steampunk ocean setting into a
Victorian-style city hanging from giant
balloons, looking every inch like a living
Heath Robinson sketch. If you buy one
game this year, it should be this.
FAR CRY 3
Expected: End of this year
Platform: PS3, Xbox 360, PC
On the face of it, Far Cry 3 sounds like fair-
ly standard video game fare: man gets
stranded on strange island, meets some
unpleasant locals, tries to escape. But the
complexity arises through your nuanced
interactions with the environment and fel-
low islanders. The developers have gone to
great lengths to create what feel like gen-
uine moral choices the game might not
punish you for killing a man for his lunch
but it will try to make you feel bad about it.
If they achieve half of what has been prom-
ised, this could be one of the most mature
games to date. Be prepared to sacrifice a lot
of time on it.
CATHERINE
Expected: 10 February
Platform: PS3, Xbox 360
Catherine is not your average video game.
You take the part of an ordinary bloke
who cheats on his girlfriend Katherine
with a mysterious blonde called, slightly
confusingly, Catherine. Much of the game
takes place in bedrooms and bars, with
much soul searching and musings on the
nature of relationships. You try to gather
clues about the mystery woman to get a
full picture of whats really going on and
why your life has been getting so strange
recently. The real action, though, takes
place when your character falls asleep,
with his fears manifesting themselves in
the form of Freudian nightmares involv-
ing, for example, gigantic crawling babies
that you have to avoid through a series of
block-based puzzles. The Japanese Manga-
style animation looks stunning and the
weirdness-factor alone makes this worth a
look.
THE LAST GUARDIAN
Expected: This year, hopefully
Platform: PS3
The Last Guardian has been stuck in pro-
duction for six years but 2012 should be
the year it finally sees the light of day. It
is an Alice in Wonderland-style adven-
ture about a young boy trying to escape
from a sinister, fantastical world. Helping
you on your journey is, of course, a colos-
sal cat/eagle hybrid creature, who you
will have to keep interested if you want
his help solving the games puzzles. It
combines action with problem solving
and taking care of your lovingly animat-
ed sidekick. The biggest pull, though, will
be exploring the finely crafted world,
which has an air of the Tim Burton to it.
THE LAST OF US
Expected: End of this year
Platform: PS3, Xbox 360, PC
This survival horror was inspired by a
scene in David Attenboroughs Planet
Earth, in which fungal spores take over
the brains of ants (if you havent seen it,
look it up. Its both engrossing and gross).
The Last of Us applies the same theory to
humans, resulting in a zombie invasion
with a difference. The aftermath is very
similar to the TV version of The Walking
Dead, with survivors killing each other
for food and weapons. The animation is
amongst the most advanced ever seen in
a game and the trailer could just as easily
be for a big budget Hollywood movie.
BIOSHOCK INFINITE
Expected: Sometime this year
Platform: PS3, Xbox 360
Bioshock will go down as one of the all-
time great games. Its underwater art
deco city a crumbling palace of rusting
copper was a triumph of both gaming
and imagination. It was set against a
complex political backdrop a failed
Games arent just
about shooting
things. Here are the
pick of 2012s more
cerebral offerings
The thinking mans games
S
o, the biggest selling phone of last year
was the... BlackBerry. Its been a mixed
year for... Wait... What? BlackBerry?
Seriously?
After a year that has seen global black-
outs and gigantic writedowns culminating
in its co-chief executives stepping down last
month RIM has come out with a tub-
thumping statement claiming to be the num-
ber one selling smartphone in the UK for the
second year running, beating the iPhone 4
(and the 4S) and the Samsung Galaxy S2.
The announcement, based on figures from
GfK, appears to go against pretty much
everything weve heard up until now, includ-
ing the research companys own (leaked)
findings from the four weeks up to 9
December, in which the iPhone 4S came out
as the top selling device at around 25 per
cent of the market. But RIM says it grabbed
26.3 per cent of December sales and aver-
aged 27.7 per cent through 2011.
Sounds good but what exactly does
that mean? The first thing to remember is
that BlackBerry is the brand name for a
host of handsets (the various Bolds, the
Torch etc), not a single device. What RIM
seems to be doing is comparing the entire
BlackBerry catalogue to the iPhone 4 and
4S, which is a bit sneaky. In terms of indi-
vidual handsets, the top selling is, by almost
every measure, either the iPhone 4/4S or
the Galaxy S2. In terms of operating sys-
tems, Android mostly consisting of
Samsung and HTC handsets is the clear
market leader, not BlackBerry.
Jupiter released figures last week that
showed RIM shipped 14.4m smartphones in
the fourth quarter, a drop of 0.7 per cent on
the year before, with the companys market
share falling by even more in a growing over-
all field. USwitch, which uses a metric based
on units shipped and online interest, placed
the Samsung Galaxy S 2 top overall, with its
Ace, Nexus, Note and S i9000 all featuring in
the top 10. Now, both of these other sets of
figures are based on shipments, rather than
the sales figures used by GfK, which could
explain some discrepancy. However, as any-
one who has tried to buy a new iPhone will
attest, there is a shortage of available hand-
sets Apple doesnt appear to be bulk ship-
ping millions of iPhones and keeping them
locked in a cupboard somewhere.
I dont doubt that the research is accurate.
It just doesnt show what RIM wants it to.
GEEK SPEAK
@steve_dinneen
BlackBerry
tops handset
sales... sort of
THREE OF THE BEST
INDEPENDENT iPAD GAMES
SUPERBROTHERS: SWORD AND SWORCERRY
Sword and Sworcery (sic) is a point and
click with a difference. This ever-so-clever
Canadian game is part homage to point-and-
clicks of yesteryear, part musical social
experiment. Most of the puzzles are sound-
based, with the player having to respond to
the beautifully crafted soundtrack. The game
will often prompt you to share your experi-
ences on Twitter and search for solutions
from fellow players. A great example of
innovative iPad integration.
SOLIPSKIER
This skiing game is pure simplicity. Holding your
finger on the iPads screen draws snow
under your heavy metal-loving character.
Swiping up or down creates jumps.
Direct your skier through gates and
avoid obstacles. The more gates
you hit and tricks you pull off
(by taking your finger off the
screen), the higher the score
and the faster he goes. This will
have you hooked for weeks.
MACHINARIUM
This Czech-developed point-and-click was first
released in 2009 but has recently found its
home on the iPad 2. The puzzles are fiendishly
hard but the biggest attraction is the hand-
drawn, scrap yard-esque robot planet your
mechanical protagonist (left) lives on. There
is a vague plot but the real fun is exploring
the environment, which your stretchy, decid-
edly old-school robot must tear pieces off to
progress. Its cute in the way Wall-E is
cute a landmark in its genre.
While the big
game studios are
competing with
Hollywood in
terms of scale,
new formats like
the iPad mean the
independent scene
is also flourishing
with games like
Sword and
Sworcery (left)
L
ast year saw a host of games that
pushed the boundaries of what the
genre can achieve. New techniques
give almost cinematic animation
quality and video game acting is no-
longer the refuge of Z-list talent. Titles
like LA Noire and Skyrim were vast in
their scope and brilliant in their execu-
tion, proving that games are far from
mere distractions for teenage boys. Here
are some of the games slated for release
this year that will capture your imagina-
tion as well as test your reflexes.
(Clockwise from top)
Survival horror The
Last of Us; dystopian
steampunk master-
piece Bioshock
Infinite; otherworldly
puzzler The Last
Guardian; surreal
thriller Catherine and
immersive sandbox
Far Cry 3
T
E
R
R
E
S
T
R
I
A
L
INSIDE MEN
BBC1, 9.00PM
New series. A cash depot manager
faces his worst fear when armed
robbers attack in a bid to steal millions
of pounds but nothing is as it seems.
ETERNAL LAW
ITV1, 9.00PM
The angels are assigned to defend a
soldier in a court martial and Tom
follows a line of inquiry at an army
base that puts him in danger.
WINTER ROAD RESCUE
CHANNEL 5, 9.00PM
The first of two documentaries
following snowplough teams and RAC
patrols, working to ensure the roads
are clear during winter.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmPremier League World
8pmThe Rugby Club 9pm
Ringside 10pmTime of Our Lives
11pmPremier League Review
12amRingside 1amTime of Our
Lives 2amPremier League World
2.30amThe Rugby Club 3.30am
Ringside 4.30amPremier League
Review5.30am-6amLive Test
Cricket
SKY SPORTS 2
7pmSuper League 9pmPremier
League Review10pmNFL: Total
Access 11pmThe Rugby Club
12amSuper League 2amNFL:
Total Access 3am-3.30am
Americas Cup Uncovered
SKY SPORTS 3
6pmEuropean Tour Golf 8pm
Live PGA Tour Golf 11pm
European Tour Golf 1am-4am
PGA Tour Golf
BRITISH EUROSPORT
7pmLive Snooker 10pmBoxing
11pmPoker 12am-1amAfrica
Cup of Nations
ESPN
6.45pmPremier League Review
7.45pmLive Serie A 9.45pm
ESPN Kicks: Premier League
10pmOff the Ball 10.30pmGoal!
11pmPremier League World
11.30pmPress Pass 2012 12am
Freestyle FIS World Cup
Magazine 12.30amUFC
Unleashed 1.30amEuroleague
Basketball 3.15amFIBA
Basketball 3.45amAMA
Supercross 5.45am-6amESPN
Kicks: Extra
SKY LIVING
7pmCriminal Minds 8pmI Hate
Mum9pmThe Biggest Loser
10pmCriminal Minds 11pm
Unforgettable 12amBones 1am
CSI: Crime Scene Investigation
2.40amMy Wife and Kids
3.30amBones 4.20amNothing
to Declare 5.10am-6amJerry
Springer
BBC THREE
7pmTop Gear 8pmJunior
Doctors: Your Life in Their Hands
9pmStrictly Soulmates 10pm
EastEnders 10.30pmRussell
Howards Good News 11pmFamily
Guy 11.45pmAmerican Dad!
12.30amStrictly Soulmates
1.30amYoung Soldiers 2.25am
Junior Doctors: Your Life in Their
Hands 3.25amRussell Howards
Good News 3.55amSnog, Marry,
Avoid? 4.25am-5.20amSun, Sex
and Suspicious Parents
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pmRules of
Engagement 9pmHow I Met
Your Mother 9.30pmHappy
Endings 10pmNoel Fieldings
Luxury Comedy 10.30pmChris
Moyles Quiz Night 11.20pmThe
Big Bang Theory 12.20amHow I
Met Your Mother 12.45amScrubs
1.45amNoel Fieldings Luxury
Comedy 2.15amChris Moyles
Quiz Night 2.55amRules of
Engagement 3.15amGreek 4am
Wildfire 4.40am-6amSwitched
HISTORY
7pmMounted in Alaska 7.30pm
Pawn Stars 9pmIRT Deadliest
Roads: The Andes 10pmMud Men
11pmPawn Stars 12.30am
Mounted in Alaska 1amIRT
Deadliest Roads: The Andes 2am
Ice Road Truckers 3amMud Men
4amDeep Sea Detectives
5am-6amAmerican Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmWheeler Dealers 9pmIce
Pilots 10pmSinking of an Aircraft
Carrier 11pmDeadliest Catch
12amBear Grylls: Born Survivor
1amIce Pilots 2amSinking of an
Aircraft Carrier 3amWheeler
Dealers 3.50amMythbusters
4.40amMark Williams on the
Rails 5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon and
Kate Plus 8 9pmI Didnt Know I
Was Pregnant 10pmSurviving
Death 11pmTrauma Unit 12amI
Didnt Know I Was Pregnant 1am
Surviving Death 2amTrauma Unit
3amSupernanny US 4amA Baby
Story 5am-6amBringing Home
the Babies
SKY1
8pmHawaii Five-0 9pm
Mad Dogs 10pmStella 11pm
NCIS: Los Angeles 12amDog the
Bounty Hunter 1am99 Most
Bizarre 1.50amFringe 2.40am
Road Wars 4.20amProject
Catwalk 5.10am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmMotorway Cops
9pmCHOICE Inside Men
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time
11.35pmThis Week
12.20amSkiing Weatherview
12.25amSign Zone: Secrets of
the Tory Billionaire Panorama
12.55amCountryfile
1.55amBritains Killer Roads
2.40amHairy Bikers Best of
British 3.25am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys Goes to Ireland
7pmEscape to the Country
8pmRaymond Blanc The Very
Hungry Frenchman
9pmPutin, Russia & the West
10pmJames Mays Things You
Need to Know
10.30pmNewsnight. With
Emily Maitlis: Weather
11.20pmToughest Place to Be
a Bin Man:
12.20amAn Island Parish
12.50amAn Island Parish
1.20amBBC News 3.25amClose
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmHot Metal: Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmCHOICE Eternal Law
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Jonathan Ross
Show
11.35pmTake Me Out
12.40amThe Zone: ITV News
Headlines
2.45amHot Metal: Tonight 3.10am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
6.55pm4thought.tv
7pmChannel 4 News
7.55pmChannel 4 Presents
2012: Danielle Brown Part
Two
8pmLocation, Location, Location
9pmThe Restoration Man 10pm
Confessions from the Underground
11.05pmCoppers 12.05am
Random Acts 12.10amParty
Paramedics 1.10amThe Great Train
Robberys Missing Mastermind?
2.05amBritain AD: King Arthurs
Britain 3amSt Elsewhere 3.50am
90210 4.30amMy Dream Farm
5.25am-6.10amCountdown
6pmHome and Away:
6.30pm5 News at 6.30
7pmHoliday Heaven on Earth
7.30pmHow Do They Do It?:
5 News Update
8pmWorlds Scariest Near
Misses: 5 News at 9
9pmCHOICE Winter Road
Rescue
10pmFILMThe Shepherd.
2008.
11.55pmInside Hollywood
12.10amSuperCasino
4amHouse Doctor 4.50am
Wildlife SOS 5.10amMichaelas
Wild Challenge 5.35am-6am
Michaelas Wild Challenge
1 2 3 4 5
6 7 8
9 10
11 12 13
14
15 16 17
18
19 20
21 22
9 21
27 12
7 17 19
3 18
32 5
45
10 18
8 9
15 16 14
28 13
6 14
11
7
11
28
20
15
16
10
13
29
9
39
10
14
23
25
13
3
7
33
12
6
12
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Calvin ___, fashion
designer (5)
3 Encounters (5)
6 Oil platforms (4)
8 Hard to comprehend,
solve or believe (6)
9 Chafe (3)
11 Nigerian monetary unit (5)
12 Faintly detectable
amount (5)
14 Arranged in close-
packed rows (7)
15 Get the better of (5)
16 Growing older (5)
18 Consume (3)
19 Saucepan stand (6)
20 Take care of (4)
21 Actors parts (5)
22 In a poor way (5)
DOWN
1 Holy book of
Islam (5)
2 Covered against
loss (7)
3 Small or minor
details (8)
4 Hand over to the
authorities of
another country (9)
5 Fashion (5)
7 Machine for
grinding grain (9)
10 Female hereditary
title (8)
13 Meeting for
boat races (7)
15 Further from
the centre (5)
17 Divine (5)
W
S
H
E
T T
E
N
O

4


4
4

4
D O G M A S C O W
I U M A K E R E
S H Y N T U N A
C A S T E R T N
C S E A L E G S
K S I N G E R
I S O L A T E I
N E S L O W L Y
E D G E E A L A
P E V A N S D W
T W E E S E E D S
2 4 6 1 7 3 1
4 7 8 2 9 9 4
1 5 4 8 9 4
8 9 5 4 3 2 1
3 9 8 7 5 3
8 3 2 7 4 9 5 1 6
6 2 1 1 8 2
9 7 8 5 8 7 9
5 9 2 1 2 3
6 1 1 4 2 1 7
9 4 3 8 6 3 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PERMITTED
Lifestyle | TV&Games
CITYA.M. 2 FEBRUARY 2012 26
Sport
27 CITYA.M. 2 FEBRUARY 2012
Buy online at fulhamfc.com or call 0843 208 1234 (option 1)
Saturday 11th February
(Kick-Off 3pm)
Tickets from 30 Adults and 10 Juniors
All tickets are subject to availability.
FOOTBALL COMMENT
TREVOR STEVEN
Window shopping will see new-look Rangers safe
Results
98I:C8PJGI<D@<IC<8>L<
8jkfeM`ccX%%%%%%%%%%%%%( ) HGI%%%%%%%%%%%%%%%%%%%%%%%%%%%% ) )
9cXZbYlie%%%%%%%%%%%%%% ' ' E\nZXjkc\%%%%%%%%%%%%%%%%%%( )
9fckfe%%%%%%%%%%%%%%%%%%%% ' ' 8ij\eXc%%%%%%%%%%%%%%%%%%%%%% ' '
=lc_Xd%%%%%%%%%%%%%%%%%%% ' ( N\jk9ifd%%%%%%%%%%%%%%%% ' (
Jle[\icXe[%%%%%%%%%%% ) * Efin`Z_%%%%%%%%%%%%%%%%%%%%% ' '
G N ; C = 8 >; Gkj
DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%)* (. * * -' (0 +( ,+
DXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%)* (. * * ,- )( *, ,+
Kfkk\e_Xd%%%%%%%%%%%%%%%%%%%%%)* (, + + ++ ), (0 +0
:_\cj\X%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* () - , +( )- (, +)
E\nZXjkc\%%%%%%%%%%%%%%%%%%%%%%)* (( - - *+ *' + *0
C`m\igffc%%%%%%%%%%%%%%%%%%%%%%%%)* (' / , )/ )( . */
8ij\eXc%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* (( + / *0 ** - *.
Jle[\icXe[%%%%%%%%%%%%%%%%%%%)* / - 0 *) )+ / *'
Jkfb\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* / - 0 )* *, $() *'
<m\ikfe%%%%%%%%%%%%%%%%%%%%%%%%%%%)* / , (' )* )- $* )0
Efin`Z_%%%%%%%%%%%%%%%%%%%%%%%%%%)* . / / *) *0 $. )0
8jkfeM`ccX%%%%%%%%%%%%%%%%%%%%%)* - (' . )/ *( $* )/
=lc_Xd%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* - 0 / )0 *) $* ).
JnXej\X%%%%%%%%%%%%%%%%%%%%%%%%%)* - 0 / )+ )/ $+ ).
N\jk9ifd%%%%%%%%%%%%%%%%%%%%)* . , (( )* *) $0 )-
HGI%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* , - () )+ *0 $(, )(
9fckfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* - ) (, )/ +. $(0 )'
9cXZbYlie%%%%%%%%%%%%%%%%%%%%%%)* + - (* ** +. $(+ (/
Nfcm\j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* + - (* ), +* $(/ (/
N`^Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)* * - (+ )' +/ $)/ (,
EGFN<I:?8DG@FEJ?@G
C\`Z\jk\i%%%%%%%%%%%%%%%%( ) D`[[c\jYifl^_%%%%%%%%%%( )
email sport@cityam.com
SPORT | IN BRIEF
Coward Hamilton slammed by Sutil
FORMULA ONE: Lewis Hamilton has been
branded a coward by former Force India
driver Adrian Sutil. British racer Hamilton
declined to appear as a character witness at
a trial this week that ended with the German
being found guilty of causing grievous bodily
harm. Lewis is a coward, he said.
Nelsen closes in on Spurs move
FOOTBALL: Centre-half Ryan Nelsen is
expected to complete his move to Tottenham
today after Blackburn cancelled the 34-year-
old New Zealanders contract.
Pakistan bowler Amir leaves prison
CRICKET: Pakistan fast bowler Mohammad
Amir has been released from prison after
serving half of a six-month sentence handed
down for his part in a spot-fixing offence car-
ried out against England back in 2010.
ARSENAL manager Arsene Wenger
rebuffed talk of a crisis and insisted
he was pleased with a point and a
clean sheet after slipping further
behind in the race for a Champions
League place.
Two Robin van Persie shots onto
the woodwork were the closest
the Gunners came to capitalis-
ing on their superiority and a
victory that would have hoist-
ed them to within two points
of fourth-placed Chelsea.
Instead they dropped to
seventh, although Wenger
found a positive spin to
a frustrating result
that leaves them
with just one
point from their
last four Premier
League games.
On the posi-
tive side we havent lost and we
havent conceded a goal, he said.
We had even more difficult peri-
ods when we won championships
and went six games without a win.
Its part of football when you lose
three games like we did when you
do not lose the fourth game it is
already not too bad.
FA Cup triumphs over Aston Villa
and Leeds have been rare bright spots
on a wretched run for the north
Londoners, which has seen them take
just eight points from eight league
fixtures. To compound the gloom, it
was confirmed yesterday that
England midfielder Jack Wilshere
remains indefinitely sidelined
after an injury setback.
When Van Persies early
effort was cleared off the
line and Theo Walcott (left)
missed when clean through
Bolton looked unlikely to
keep a first league clean sheet
since November.
But Van Persie hit
the post and, with a
superb chip, the
bar, as the
Gunners second-
half salvo came
to nothing.
At least we
didnt lose,
says Wenger
BY FRANK DALLERES
FOOTBALL

0
0
BOLTON
ARSENAL
TCHOYIS ROYS BOY | Fulham held by Baggies
FORMER Fulham manager Roy Hodgson
enjoyed a profitable return to Craven
Cottage last night after Somen Tchoyis
82nd-minute equaliser ensured West
Brom left west London with a share of
the spoils and a 1-1 draw.
Hodgson, who quit Fulham for
Liverpool in the summer of 2010, saw his
Albion side fall behind to Clint Dempseys
11th goal in his last 13 matches, but sub-
stitute Tchoyi (above) earned the Baggies
a point, scoring just four minutes after
coming off the bench.
Newcastle piled on the agony for rele-
gation-threatened Blackburn as an own
goal from Scott Dann and Gabriel
Obertans injury time strike ensured a 2-0
away win for Alan Pardews Champions
League-chasing side. David Dunn missed
a penalty for Rovers, who are now two
points from safety, while Newcastle
climbed to just three points behind fourth
placed Chelsea.
Sunderland secured their latest con-
vincing victory under Martin ONeill with
a 3-0 win over Norwich. Fraizer Campbell
and Stephane Sessegnon put the Black
Cats two up at half time and a Daniel
Ayala own goal rounded off a third
straight home Premier League success.
Zamoras a guarantee of goals
FIRING Neil Warnock in the first week of
January allowed new QPR manager Mark
Hughes the majority of the window to revamp
his squad. After some last-minute additions
Rangers are in an immeasurably stronger posi-
tion and I cant see any way theyll lose their
Premier League status now. Scoring goals has
been a problem all season long, but Bobby
Zamoras defection across west London will
undoubtedly solve that conundrum.
Arsenal inactivity no surprise
FANS of Arsenal, and to some extent Chelsea,
have no doubt been left frustrated by the lack of
big-name arrivals this month. Though a multi-
million pound signing would have lifted spirits
on the terraces, the problems at both clubs run
so deep that one man alone would not be able
to reverse the tide. Primarily, Chelsea need
Fernando Torres to start scoring again, while
Arsenal would be best advised to wait until the
summer to address their major failings.
Spurs go for short-term fixes
TOTTENHAM remain in a strong position to
challenge for the league and, although they
were looking at Masrseille striker Loic Remy, I
think Harry Redknapp was right to focus his
efforts on making sure all bases are covered
until May. Remy could replace Jermain Defoe in
the summer, but for now Louis Saha will provide
sound cover up front, while Ryan Nelsen is a
solid performer who may not even be required,
so well stocked are Spurs in central defence.
Moyes turns water into wine again
EVERTON manager David Moyes is well used to
operating on a shoestring budget and, having
unearthed a couple more bargains, Im confident
they are equipped to enjoy a strong second half
to the season. Evertons major outlay came in
the shape of Nikica Jelavic, a forward who Ive
watched many times at Rangers. Hes a penalty
box striker, very different in style to the outoing
Louis Saha, and will provide a focal point in
attack that, for all his quality, Saha rarely did.
QPR manager Mark Hughes believes
new signing Djibril Cisse will deliver
the goals to preserve his sides
Premier League status after the
France striker scored just 12 minutes
into his debut to help earn a point at
Villa Park last night.
Stephen Warnocks unfortunate
own goal put the visitors into a 2-0
lead but Darren Bent pulled one back
before the break and Charles
NZogbias first goal since his sum-
mer switch from Wigan 11 minutes
from time robbed Hughes of his first
away win since his appointment at
the beginning of last month.
Rather than dwell on the loss of
two crucial points, however, Hughes,
whose side are now three points clear
of the drop zone, chose to lavish
praise on his 4m deadline day pur-
chase from Lazio.
We were absolutely delighted with
the impact Djibril made, said
Hughes, who also handed debuts to
fellow January recruits Taye Taiwo
and Nedum Onuoha. I think every-
body saw his qualities. He was tired
towards the end and I had to take him
off. Hes had a long few days and we
had to protect him. Theres so much
more to come from him, but hes
made a promising start.
WEDNESDAYS FOOTBALL: PAGE 27
NZogbias
late leveller
spoils Cisses
dream debut
TOTTENHAM manager Harry
Redknapp shouted across the court-
room at a detective to stop staring
and accused the policeman of trying
to unsettle him as his tax evasion trial
took a dramatic turn yesterday.
Redknapp (inset) raised his voice
towards Detective Inspector David
Manley, who led the City of London
Police investigation, amid a series
of spiky exchanges under
cross-examination from the
prosecution.
Please stop staring at
me, officer, the 64-year-
old, who is favourite to be
next England manager,
interrupted his testimony
to tell Manley at
Southwark Crown Court. I
know youre trying to cause
me a problem.
The flashpoint came as Redknapp
took the stand for the first time in his
high-profile trial, which is set to run
into a third week.
He and co-accused Milan Mandaric,
the former Portsmouth chairman,
deny two charges of cheating the pub-
lic revenue regarding payments
totalling 189,400 made into a
Monaco account named after
Redknapps dog Rosie.
Redknapp also clashed with prose-
cuting barrister John Black QC as he
questioned the man credited with
Tottenhams recent revival over the
sums, which are alleged to have been
paid between 2002 and 2007.
You are not too sure where you are
going, Redknapp told Black, denying
that the payments were secret
bungs designed to bypass income
tax and National Insurance.
He added: Do you think Im silly
enough that I wouldnt go along
and close the account if I had
anything to worry about?
Redknapp, who is
accused of keeping the
Rosie 47 account hidden
from HM Revenue and
Customs for six years,
said it only came to light
because he volunteered
the information to the
Stevens Inquiry into football
corruption.
Why do I go along and tell [Stevens
Inquiry investigators] Quest? If I dont
mention it its history. Nobody knows
about it, he told the court.
Redknapp also rejected Blacks
description of him as a hard-headed
businessman with financial acu-
men, saying: Im a fantastic football
manager. I have no business sense
whatsoever unfortunately.
The trial continues. Cisse scored just 12 minutes into his QPR debut Picture: PA
Axe Terry or risk toxic team
spirit, England chiefs urged
ENGLAND chiefs have been urged to
drop captain John Terry or risk a
toxic dressing room at Euro 2012,
after his trial for alleged racist abuse
was adjourned until after this sum-
mers tournament.
Terry will now not face court until 9
July, meaning he is likely to keep the
armband and his place in the squad
for the European Championships, bar-
ring injury or a U-turn from manager
Fabio Capello or the Football
Association. But Piara Powar, executive
director of Football Against Racism in
Europe, last night called on the FA to
intervene.
The seriousness of the allegations
mean that he cant lead the nation,
Powar said. The FA must do the right
thing.
Reading forward Jason Roberts, a
campaigner for anti-racism movement
Kick It Out, warned of the conse-
quences of including the Chelsea star.
Believe me, the dressing room at
the Euros will be TOXIC unless the cor-
rect decision is made, Roberts wrote
on Twitter.
I do not believe that the England
captain should go to the Euros.
Terry has refused to step down and
denies the charge of committing a
racially aggravated public order
offence towards QPR defender Anton
Ferdinand during a Premier League
match in October.
The 31-year-olds legal team yester-
day entered a not guilty plea on his
behalf in a brief hearing at West
London Magistrates Court, which the
player did not attend.
Chelsea directors asked that Terrys
trial be postponed until the conclu-
sion of the domestic season and Euro
2012, which ends on 1 July.
ENGLANDS interim head coach
Stuart Lancaster is expected to con-
firm first international starts for
Saracens trio Owen Farrell, Brad
Barritt and Mouritz Botha when he
names his team this morning for
Saturdays Six Nations opener against
Scotland at Murrayfield.
Uncapped duo Barritt and 20-year-
old Farrell, son of England coach and
former dual-code star Andy, are set to
form a new-look midfield pairing,
while Botha will make his first start
in the second row having won his
maiden cap against Wales last year.
Lancasters options have been
restricted by injuries to the likes of
Leicester fly-half Toby Flood and back-
rower Tom Wood, but he has already
stamped his mark on the squad by
installing Harlequins flanker Chris
Robshaw as captain for the first two
matches of the tournament.
The former Saxons coach must
decide who will play alongside
Robshaw in the back row in the
absence of Wood, who had rivalled
him for the captaincy.
Tom Croft is tipped to play at No6,
leaving 31-year-old Phil Dowson vying
for a first appearance with another
potential debutant, Scarlets Ben
Morgan. Wasps hooker Rob Webber
could make his debut off the bench.
RUGBY UNION

Farrell among Saracens trio

set for first Red Rose starts
Redknapp in
outburst at
cop as drama
hits tax trial
Sport
28 CITYA.M. 2 FEBRUARY 2012
WHO DID THE BEST
JANUARY BUSINESS?
TREVOR STEVENS
VERDICT: P27
BY FRANK DALLERES
FOOTBALL

BY FRANK DALLERES
FOOTBALL

BY JAMES GOLDMAN
FOOTBALL

2
2
ASTON VILLA
QPR