BUSINESS WITH PERSONALITY

POLITICAL upheaval and gloomy

economic data knocked markets in
Europe yesterday, as investors grow
increasingly concerned with the
outlook for the continent.
A business survey for the
Eurozone showed an even faster
pace of recession than expected,
dampening early sentiment. The
mood was worsened by news of
Dutch Prime Minister Mark Rutte
tendering his resignation, after the
coalition government collapsed
over austerity talks.
The expected success of socialist
Francois Hollande in Frances pres-
idential election had already
ensured a dismal start to the week.
The spread between French and
German bonds widened to 147
basis points, while credit default
swaps climbed in Holland.
The pan-European FTSEurofirst
300 lost 2.3 per cent, falling to a
level not seen since mid-January.
The bearish mood also affected
commodities, with Brent crude
down 0.56 per cent and copper los-
ing 1.97 per cent. Gold prices eased
to $1630.89 an ounce, extending
the more than two per cent losses
it has posted so far this month.
A SURGE in dealmaking
offered some much-needed
cheer to the City yesterday
as blue-chip firms brushed
off fears over political
uncertainty and the sover-
eign debt crisis.
Mobile phone giant
Vodafone moved closer to seal-
ing a hotly anticipated 1bn buy-
out of Cable & Wireless Worldwide on
a day when corporates in baby food,
pharmaceuticals, healthcare and avi-
ation also ate into their cash piles.
Vodafone said it would become
Britains second-largest telecoms firm
after agreeing to buy struggling
CWW for 1.04bn in cash. Its 38p-per-
share offer was supported by the
board of CWW but faces opposition
from fund manager Orbis, its largest
shareholder with a 19 per cent stake,
which said the bid was too low.
The largest deal of the day came
from Nestl, which triumphed in the
battle for Pfizers baby food business
with an $11.85bn (7.35bn) offer. The
Swiss food group beat competition
from French rival Danone to take
Pfizer Nutrition, providing it secures
regulatory approval.
Meanwhile AstraZeneca, Britains
second-largest drug-maker, agreed to
buy US firm Ardea Biosciences for
$1.26bn, giving it access to a new
drug to treat gout. The $32 per share
acquisition at a 54 per cent premi-
www.cityam.com FREE
KEN AND BORIS NECK AND NECK AS MAYORAL RACE HOTS UP
FTSE 100 5,665.57. -106.58 DOW 12,926.86 -102.40 NASDAQ2,970.45 -30.00 /$ 1.61 unc / 1.23 +0.01 /$ 1.32 unc
MERGER MONDAY
ISSUE 1,618 TUESDAY 24 APRIL 2012
DONT TAX HERITAGE:
LOYD GROSSMAN IN
THE FORUM
See Page 21
See Page 6
EUROZONE WOES: Pages 4-5

Certified Distribution
27.02.2012 till 01.04.2012 is 99,462
Strife in the
Eurozone
hits markets
BY JULIAN HARRIS
Corporates spend
cash piles despite
the global gloom
BY PETER EDWARDS
um to Ardeas closing price on
Friday is worth $1bn after deduct-
ing cash held by Ardea and is the lat-
est in a wave of pharma buyouts.
And global media giant Thomson
Reuters said it would sell its health-
care arm to private equity firm
Veritas Capital for $1.25bn in cash.
The business provides data and ana-
lytics to hospitals, government agen-
cies and healthcare workers to help
increase efficiency.
It came as the sale of Edinburgh
Airport was finally agreed with
City Airport owner Global
Infrastructure Partners for 807m.
BAA had been forced to sell either
Edinburgh or Glasgow airport
because of Competition Commission
concerns but the price still surpassed
analysts initial estimate of 500m.
The sales provided a boost to M&A
activity in Europe, where 167 deals
have so far reached a value of
22.8bn (18.59bn) this month, com-
pared to 38.27bn from 340 deals in
March, according to
Mergermarket.
A series of other high-profile deals
are on the horizon as private equity
firms look to cash in. Yesterday First
Reserve, the majority shareholder in
Acteon, kicked-off the 1bn sale of
the oil services firm after appointing
JP Morgan as an adviser, while Lion
Capital is in talks to sell Weetabix to
a Chinese government-owned food
firm for 1bn.
807
BAA agrees to
sell Edinburgh
Airport to GIP for
$11.85
Nestl to buy
Pfizer's baby food
business for
billion
million
$1.26
AstraZeneca
to buy Ardea
Biosciences for
billion
1.04
Vodafone nears
deal for Cable &
Wireless Worldwide for
billion
$1.25
Thomson Reuters
to sell healthcare
unit to Veritas for
billion
MORE: Page 8-9 & 13

TOO CLOSE TO CALL
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Hermes flies in face of Deutsche
nActivist UK fund manager Hermes
has urged Deutsche Banks
shareholders not to approve the
supervisory boards performance at
next months meeting. A source close
to the issue told City A.M. that Hermes
Equity Ownership Services, the
investment advisory division of the
multi-boutique asset manager, has
filed a counter proposal against the
motion of approval. The Hermes-
represented group, which accounts for
0.5 per cent of Deutsche Banks
shares, is concerned about
remuneration policies at the bank and
the manner in which the change of
leadership process was managed. The
annual shareholder meeting is
scheduled for 31 May.
S&P lowers Argentina outlook
nRatings agency Standard & Poors
lowered its outlook for Argentinas
sovereign debt rating last night in
response to the countrys
renationalisation plans. S&P said the
South American nations abrupt
seizure of oil group YPF underscores
the weakening system of checks and
balances in its government. The
agency now has a negative outlook on
Argentinas highly speculative B
rating, meaning it has a one in three
chance of a downgrade in the next
two years. Spanish oil major Respol,
which owns 51 per cent of YPF, had
earlier threatened legal action against
companies that invest in YPF. The
Spanish government has also
promised economic sanctions in
response to Argentinas plans.
Profligate states accused
of hijacking credit system
THE GOVERNMENT was accused of
hijacking the credit system to fund
its own profligacy by HSBCs chief
economist yesterday.
In a research note, Stephen King
slams Western governments, includ-
ing the US and the UK, for rigging
the credit system so that they can
jump to the front of the credit
queue and impose low borrowing
rates for states, while private sector
borrowers are crowded out and
forced to pay more.
He uses the term financial repres-
sion to describe the policy, whereby
governments force savers and com-
panies to lend to them for low
returns or at a real-terms loss.
By borrowing heavily while having
the Bank of England act as gilt pur-
chaser of last resort, King argues
that the government has managed
to keep its borrowing costs down but
that it will only serve to live with a
high debt burden and will not
reduce it.
The note is a stinging critique of
George Osbornes claim to be pursu-
ing a policy of fiscal austerity and
monetary activism whereby the
government proceeds gradually with
budget cuts and relies on the Bank of
England to buy its debt.
By jumping to the head of the
credit queue, government is not sub-
Ex-Calpers chief accused of fraud
The Securities and Exchange Commission
has accused Federico Buenrostro, former
chief executive of the California Public
Employees Retirement System, and a
friend of fabricating documents designed
to show that $20m in fees paid by Apollo
to Arvco, a placement agent, for help
securing the pension funds investment
had been fully disclosed.
Tata consultancy arm in profit rise
Tata Consultancy Services has shrugged off
the tough conditions affecting rivals in
Indias outsourcing sector to deliver
quarterly results broadly in line with
expectations. Indias largest IT services and
software group by revenue reported net
profits of Rs29.3bn (346m) in the fourth
quarter, up 23 per cent on the year before.
Beijing hands CIC a further $50bn
China Investment Corp, the Chinese
sovereign wealth fund, has received a
further $50bn in capital from the
government. The move was disclosed late
last week in Beijing by CIC officials
attending a forum for sovereign wealth
funds and pension funds that meets twice
a year.
550 jobs to go at British Gas call centre
The closure of a British Gas call centre in
Southampton is likely to result in most of
the 550 workforce losing their jobs. The
company claimed that customers
preferred to contact staff via e-mail than
over the telephone and insisted that the
closure would not affect its quality of
service.
Back elected mayors, says PM
Cities that fail to back the idea of directly-
elected mayors will lose out on jobs and
investments, David Cameron warned.
Christopher Tappin granted bail
Mr Tappin, 65, is set to be released from
Otero Prison later this week after a US court
overturned an earlier decision to hold him
until his trial on weapons smuggling
charges. The millionaire was ordered to
submit a $1m bond, including $50,000 cash.
Crime: in worlds top 20 economies
Crime generates an estimated $2.1 trillion in
global annual proceeds or 3.6 per cent of
the world's gross domestic product and
the problem may be growing, a senior
United Nations official has said.
Unilever takes Palm Oil in hand
Unilever PLC is negotiating to build a
$100m palm-oil processing plant in
Indonesia, in an attempt to accelerate its
commitment to sourcing the oil in ways
that do not destroy the environment.
United Continental nears Boeing deal
United Continental will soon finalise a
deal with Boeing for more than 100 of its
737 single-aisle jetliners, according to a
person familiar with the matter. Boeing
last year placed far behind its rival Airbus
in landing orders for small airliners.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE POUND hit a 20-month high
against the euro yesterday as
nervous investors fled political
uncertainty to put cash in the UK.
The euro fell 0.6 per cent in the
day against the pound to 89.49p, its
lowest since August 2010.
Expectations that quantitative
easing is coming to an end has also
helped push up the pound in
recent days, which has now risen
7.5 per cent against a trade
weighted basked of currencies
since last June and to its highest
level since August 2009.
Analysts believe the UKs safe
haven status is behind the
appreciation.
We believe the UK economy will
show gradual improvement and the
market will recognise the UK is in a
much better situation than the
Eurozone, said Sara Yates from
Barclays Capital. In the Eurozone
there are an awful lot of risks
coming up, that helps reignite
concerns about the political side.
However, by making UK exports
less competitive and making
imports cheaper, that appreciation
will act as a drag on growth.
M&Gs Jim Leaviss estimated the
rise since June is equivalent to a 1.8
per cent monetary tightening.
There could be big headwinds
for the UK economy over the next
few months, he warned.
Strong pound
could threaten
UKs recovery
George Osbornes policy of monetary activism has been labelled financial repression
2
NEWS
BY TIM WALLACE
BY JULIET SAMUEL
The new jobs website for London professionals
To contact the newsdesk email news@cityam.com
CITYAMCAREERS.com
I
F Boris Johnson loses the London
mayoral election next week, he
will have just two men to blame:
David Cameron and George
Osborne. Yesterdays latest poll
showing the London candidates in a
statistical dead heat Boris on 51 per
cent including second preferences,
and Ken Livingstone on 49 per cent
can only be explained by one factor.
London is now a Labour dominated
city. More Labour voters who
previously would have backed Boris
as Mayor but voted for their party in
the London Assembly elections the
same day now say they will vote for
Ken. That is the only real change
Boris still retains just enough Labour
voters to win, but it is looking
extraordinarily tight.
The big shift over the past few
weeks, of course, has been George
Osbornes omnishambolic budget, the
EDITORS
LETTER
ALLISTER HEATH
Boris is being dragged down by coalitions many mistakes
TUESDAY 24 APRIL 2012
governments inability to respond to
the criticisms and events it
unleashed, and its incompetence over
Abu Qatada. Low grade government is
retoxifying the Tories in London to
such a degree that it is chasing away
wavering Labour voters. Boris lead
among women is also dropping,
which is worrying for him as they
were his stronghold. More people
believe Kens pledge to cut TfL fares.
Boris is Camerons and Osbornes
biggest rival within the Tory party
but a Boris defeat would be lethal for
them. The Prime Minister is hoping a
Boris re-election would cement his
fightback and the start of a phase of
better news for the government. The
stakes are high, not just for London
but also for the coalitions survival.
That said, Boris remains the
favourite. He was ahead of Ken (albeit
in a diminishing way) until the end of
last year in the polls; then Ken
enjoyed a brief period ahead after
ticket prices increased; and Boris then
moved ahead again a few weeks later
when the price hikes receded in peo-
ples memories and the campaign got
going in earnest. The Mayor has
stayed in the lead ever since though is
now back to where he was in
February. The remaining days until
the election will see the campaigns
follow careful strategies: Ken will go
after Labour voters; Boris will try to
to 47.9 from 49.2 and for manufactur-
ing, down to 46.0 from 47.7. Even
Germany is being engulfed in the
implosion of the periphery nations:
its overall PMI is down to 50.9, sug-
gesting very little growth, with manu-
facturing in deeply negative territory
at a 33-month low of 46.3.
Contrary to the received wisdom, it
is not fiscal policy but monetary poli-
cy that is triggering a demand
crunch. The money supply is being
hit as a result of banks being forced
by regulators to deleverage too quick-
ly. Its madness. Of course, the supply-
side is in urgent need of reform, and
is responsible for the regions long-
term woes. Short term, however, the
Eurozones problem is toxic: it faces a
new credit crunch.
retain his own Labour voters; and the
Mayor will also try and maximise
turnout for his core voters in outer
boroughs. For once, it seems, every
vote will really count.
EURO CRISIS
IT is all going very badly wrong in the
Eurozone. First we had the French
elections. Then the Dutch govern-
ment collapsed yesterday, once again
because of the fallout from the crisis.
And then came the grim economic
data, oodles and oodles of it: first
quarter GDP shrank by 0.4 per cent in
Spain and that was the least of the
EUs worries. The Eurozone composite
purchasing managers index, a good
gauge of activity, slumped to 47.4 in
April, down dramatically from
Marchs 49.1; a number below 50
means contraction. This collapse was
felt for both services, which slumped
ject to the market forces that might, in
other circumstances, impose disci-
pline on its behaviour, King writes.
In addition, King highlights that
new Basel III capital rules force banks
and other financial firms to stock up
on public debt because it is the only
way to meet liquidity requirements,
despite the fact that a lot of public
debt is not highly liquid in a crisis.
Lending to government ends up
artificially high and, by implication,
lending to everybody else ends up too
low, he writes, adding: Thats unfor-
tunate because, without economic
growth, its very difficult to bring debt
back down again even under condi-
tions of financial repression.
He also warns that financial repres-
sion is likely to result in persistently
lower growth in Western countries
and that it will be hard for central
banks to turn off the tap.
The central bank will find it
increasingly difficult to tighten mone-
tary policy, he says, because politi-
cians and central banks will continue
to prioritise putting off short-term
pain at the possible expense of long-
term gain.
CHANCELLOR George Osborne was
accused of playing with words
yesterday after he informed the
House of Commons that Britain will
pay out 10bn to beef up the IMFs
resources despite his previous
promise that he would not do so.
Tory backbenchers repeatedly
raised the concern that the IMF will
effectively be funding a Eurozone
bailout by the back door with the
money, despite Osbornes insistence
otherwise. Were not pouring
money into a Eurozone bailout fund
by contributing, the chancellor said.
They were also incensed that
Osborne is paying out the maximum
amount he can raise without having
to hold a parliamentary vote on the
matter.
John Redwood MP has suggested
that if the IMF bails out states
without knowing they can leave the
euro, it could contradict its mandate
that it should lend only where doing
so will make a countrys debts
sustainable. Redwood said Osborne
should urge the IMF to make sure
that loans are only made available
when [a country is] in a position to
devalue or withdraw from the single
currency.
Douglas Carswell MP quoted
Osborne previously claiming the UK
would not pay out for a euro bailout
and asked: Has he changed his
mind or is he playing with words?
Osborne faces
backbenchers
anger over IMF
BY JULIET SAMUEL
FORMER Iceland Prime Minister Geir
Haarde, the only politician to have
been tried over the global financial
crisis, was yesterday found guilty of
only the most minor of four charges
of negligence.
The 61-year-old was con-
victed of failing to hold
dedicated cabinet meet-
ings ahead of the 2008
economic collapse a
charge which does not
carry a prison sentence
but was found inno-
cent of three major
charges, including
neglecting to deal
with an overblown
banking sector. The
former leader
could have faced
up to two years in
jail if he were con-
victed of the more
Ex-Iceland PM
convicted for
his role in crisis
BY JENNY FORSYTH
serious counts.
Haarde himself criticised the special
courts mixed verdict, claiming that
judges had only found him guilty of
one count to appease Icelanders
anger at the politicians who allowed
the countrys banking system to grow
to ten times Icelands GDP before the
meltdown.
It is obvious that the majority of the
judges have found themselves
pressed to come up with a guilty ver-
dict on one point, however minor, to
save the neck of the parlia-
mentarians who instigat-
ed this, said Haarde.
Meanwhile, others
criticised the fact that
only Haarde was put
on the stand.
He was the cap-
tain on the bridge,
but there were
more ministers,
said local pension-
er Arni Einarsson.
Politicians thought that
Iceland was like the
Titanic, unsinkable. They
were not on their guard.
Former PM Geir Haarde
called the verdict absurd
FACEBOOK last night revealed it
will list on the tech-favourite
Nasdaq stock exchange when it
floats next month in the years
most anticipated IPO.
But in the same SEC filing the
social network reported its first
quarter-on-quarter earnings slide
in at least two years as its revenues
fell 6.5 per cent and profits
dropped 32 per cent on the final
period of last year.
Facebook put the sequential
quarterly decline down to seasonal
trends, saying that its advertising
income traditionally slows in the
Facebook unveils Nasdaq listing
ahead of IPO as revenues slide
BY LAUREN DAVIDSON first three months of the year.
First quarter profits were down
year-on-year, falling 12 per cent to
$205m (127.2m) despite revenues
rising 45 per cent to $1.06bn.
The updated SEC filing also
revealed that Facebook paid $300m
in cash and 23m shares for its
recent acquisition of Instagram.
The internet giant announced
separately yesterday that it has
agreed a $550m deal to buy 650
AOL patents from Microsoft, which
bought a trove of trademarks for
$1bn earlier this year. Facebook is
currently embroiled in a patent
spat with Yahoo.
BOTTOM LINE: Page 8

TUESDAY 24 APRIL 2012
3
NEWS
cityam.com
For BT residential customers, calls will cost no more than 4.5p per minute, plus 13.1p call set-up fee (current at March 2012). The price on non-BT phone lines may
be different. Calls may be monitored or recorded for security and training purposes. Over 14billion of new lending includes all credit made available to SME
businesses, with a turnover of up to 25million, between 1st January 2011 31st December 2011. Barclays Business provides services to rms with a turnover of up
to 5million. Loans are subject to application and status. Excludes online applications and automatic overdraft renewals. Terms, conditions and exclusions apply.
Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Ofce: 1 Churchill Place, London E14 5HP.
Business Banking
My local business manager
was responsible for my
lending decision, not a PC.
Lidija Newton made the leap from fashion to farming in 2010
and, with the support of her Business Manager, her raspberry
farm is beginning to reap rewards.
All our 1,700 Business Managers spend time getting to know
your business to help you make the right lending choices
We consider each customers need individually and personally
We could even help you reduce the cost of borrowing
with the Barclays Cashback Finance Scheme, part of the
Governments National Loan Guarantee Scheme
In 2011 Barclays completed over 14billion of new lending to
small and medium sized businesses.
Backed by Barclays, Britain means business.
To see how we can help your business, talk to our Business
Banking team on 0845 301 6306 or visit barclays.co.uk/lendingkit
Zuckerbergs website saw a 32 per cent sequential fall in profits in the first quarter
THE SPANISH government will force
banks to move all their real estate
assets into a special holding
company within weeks, in a bid to
reassure investors the lenders wont
need a further rescue, it emerged
yesterday.
The real estate holding entity
should be up and running by the
summer, but the final form and
details are still being discussed by
the banks and the state, a
government source said. It is
expected to dissolve after 10 years.
Spains ability to avoid an
expensive state rescue for its fragile
banking system which was
devastated by the 2008 crash of a
decade-long building boom is key
to the countrys efforts to keep debt
under control and avert a European
bailout.
This will enable us to separate
clearly the banking business from
the real estate one, the source said.
Now that most of provisions
have been made against property
losses, it should enable the banks to
get cleaned up easily.
The Spanish government in
February forced the banks to write
down massively the value of
undeveloped land, unfinished
developments and foreclosed
properties. That was a third round
of restructuring for the troubled
sector.
Spain looks to
a bad bank to
clean up sector
BY HARRY BANKS
JOBS and output are falling across
the Eurozone, survey data showed
yesterday, with even the relatively
healthy German economy shedding
workers.
Consumer confidence plummeted
to a record low in Italy, Frances busi-
ness climate deteriorated further
and Spains central bank announced
a further 0.4 per cent fall in GDP in
the first quarter, painting a very
gloomy picture of the currency
areas prospects.
The decline in services and manu-
facturing output accelerated in
April, with Markits purchasing
managers indices (PMIs) falling to a
five-month low of 47.9 in services
and a 34-month low of 46.4 in manu-
facturing.
In France the services index fell
sharply below the no change level
of 50, from 50.1 in March to 46.4 in
April, while manufacturing contin-
ued its fall at 47.3, slightly slower
than the 46.7 seen a month ago.
Output growth in Germany slowed
to a five-month low at 50.9, from
Activity drops
as euro areas
slump deepens
BY TIM WALLACE
51.6, and employment fell for the
first time in over two years.
Both the manufacturing and servic-
es sectors saw job losses, as the man-
ufacturing PMI fell from 48.4 in
March to a 33-month low of 46.3,
while services accelerated from 52.1
to 52.6.
Italian data agency Istat reported a
drop in consumer confidence to 89,
the lowest since records began in
1996 and following months of tough
austerity and economic reforms from
technocratic leader Mario Monti.
Meanwhile French agency Insees
business climate index fell one point
to 95 in April.
Eurozone PMIs
Jan99 Jan03 Jan06 Jan09 Jan12
Rest of Eurozone
France
Germany
30
40
50
60
70 PMI
50=nochange
TUESDAY 24 APRIL 2012
4
NEWS EUROZONE CRISIS
cityam.com
Rajoy - Spain
EUROZONE
Composite PMI 47.4
Manufacturing 46.4
Services 47.9
FRANCE
Business condence
index down to 95 in April
Composite PMI 46.8
Socialist Franois Hollande
beat Nicolas Sarkozy into
second place in the rst
round of the race to
be President
Neth
SPAIN
Economy shrank
0.4% in Q1
Fran
Spain
Eurozone output is falling
Mark Rutte
Netherlands
Mariano Rajoy
Spain
Mario Monti
Italy
Dutch government falls as row
over cuts tears coalition apart
EUROPES debt crisis toppled its
latest government yesterday, and
another teetered on the brink, as
coalitions in the Netherlands and
the Czech Republic tore themselves
apart in deficit reduction
negotiations.
The scale of the challenge was
further underlined by new EU data
which showed a total deficit of 4.1
per cent of GDP for the Eurozone
and 4.5 per cent for the EU as a
whole.
Dutch Prime Minister Mark Rutte
BY TIM WALLACE
offered his resignation yesterday
after failing to convince coalition
member Geert Wilders, of the
nationalist Freedom Party, to
support his cuts.
Rutte was trying to pass a budget
which would cut between 14bn
(11.4bn) and 16bn in state
spending to meet the EUs
borrowing targets, but Wilders
rejected proposals that could hit the
elderly.
Meanwhile the junior partner in
the Czech Republics centre-right
coalition broke up, threatening the
governments stability.
However, it is thought the
government has sufficient backing
to continue, and the Prime Minister
was last night believed to be
considering calling a vote of
confidence in his leadership for this
Friday.
Figures out yesterday from
Eurostat showed the Czech
Republics deficit ran at 3.1 per cent
of GDP in 2011, compared with 4.8
per cent in 2010 and 5.8 per cent in
2009. The Netherlands came in at
4.7 per cent last year, down from 5.1
per cent in 2010 and 5.6 per cent in
2009.
EUROPEAN Union quangos have
seen their budgets soar by a third
in the last two years, according to
figures released yesterday.
Despite preaching austerity to
its member states, Brussels own
spending on quangos now totals
2.64bn (2.17bn) 33.2 per cent
higher than in 2010.
There are now 52 EU-funded
quasi-autonomous agencies, twice
as many as there were in 2004, the
Open Europe think-tank said.
Open Europe, which campaigns
for reform of the EU, said that
European Union splashes 2.6bn
on quangos, claims new report
BY JULIAN HARRIS while some agencies perform
valuable services, others merely
duplicate work or suggest wasted
billions in taxpayer funds.
The European Environment
Agency (EEA) paid 250,000 for a
consultant to assess its own media
coverage, the report said. The EEA
also spent 300,000 having plants
attached to walls outside its
Copenhagen headquarters.
Ironically, many of these bodies
would never have survived the
type of austerity programmes that
the EU is now drawing up for
member states, said Open
Europes Pawel Swidlick.
NERVOUS investors weighed down
on markets yesterday, after socialist
Francois Hollande won the first
round of voting in the French
presidential election.
Hollande has been an outspoken
critic of austerity measures in the
Eurozone and last week tweeted in
support of a fight against
finance.
In Paris the CAC 40 index
tumbled throughout the day,
closing down 2.83 per cent.
Elsewhere in Europe the German
DAX lost 3.36 per cent, and the
FTSE closed down 1.83 per cent
both partly affected by Hollandes
first round win against the
incumbent Nicolas Sarkozy.
French presidential election hits
markets as yield spread widens
BY JULIAN HARRIS
And the spread between yields on
French and German government
bonds climbed to a fresh high for
2012, reaching 147 basis points.
The prospect of a new President
and new approach to dealing with
the Eurozone crisis has made
investors and European markets
nervous, commented David Miller,
a Partner at Cheviot Asset
Management.
Well see muddled markets until
the final result is declared.
The second round of voting
between Sarkozy and Hollande is
set for Sunday 6 May.
Far-right candidate Marine Le Pen
fell out of the race after coming in
third, despite registering 17.9 per
cent of the vote a record high for
the French National Front.
TUESDAY 24 APRIL 2012
5
NEWS EUROZONE CRISIS
cityam.com



Germany
NETHERLANDS
PM Mark Rutte resigned after
failing to persuade coalition
allies to support
his spending cuts
herlands
ITALY
Consumer condence
at record low of 89
in March
GERMANY
Composite PMI 50.9
Manufacturing 46.3
Services 52.6
nce
Italy
*PMI scores above 50 indicate growth
CITYVIEWS
KEN Livingstone yesterday blew
the race for Mayor of London
wide open after a YouGov poll
put him just two percentage
points behind his
Conservative rival.
Boris Johnson now leads
the race by just 51 to 49
per cent, with ten days to
go until election day.
Previous polls had con-
sistently given Johnson a
Election will go
to the wire as
Ken closes gap
six point lead but Livingstone has
belatedly begun to capitalise on the
growing unpopularity of the national
Conservative party.
A vote for the Conservative candi-
date in such a vital election is a vote
for what the Tories are doing to our
country and our city. They will use it
to vindicate the next phase of their
plans, he said in a speech yesterday.
Livingstone also issued a direct
challenge to Johnson to have a TV
debate on fares policy this
Thursday.
But Boris Johnson rejected
his opponents offer, joking
to City A.M. he would not
wait that long to discuss the
issue: I challenge him to a
debate tomorrow night, the
idle spavined inspissated
newt! Im not going to wait
cowardy custard.
Poll shows Labour voters are
still willing to back Johnson
LONDONERS increasingly prefer
Labour but many are still
willing to make an exception for
Conservative mayoral candidate
Boris Johnson, according to the
latest YouGov poll.
It shows Labour enjoy a
crushing lead of 50 to 31 in
Westminster voting intentions
amongst the capitals residents.
But when asked for their
mayoral voting intention this
transforms into a 43 to 41 defeat,
mainly thanks to Johnsons
enormous personal popularity.
Brian Paddick, the Liberal
Democrat candidate, is on track
to hit eight per cent of the vote
only slightly down on his result
in the 2008 poll.
Independent Siobhan Benita is
tied with UKIPs Lawrence Webb
on three per cent.
Green party candidate Jenny
Jones trails on two per cent while
the BNPs Carlos Cortiglia can
muster less than one per cent.
The survey of 1,138 voters was
conducted over the weekend, in
the aftermath of a torrid period
for the Conservative-led coalition
government.
Worryingly for Johnsons team
it suggests that just 11 per cent of
voters feel he is in touch with the
concerns of ordinary people.
When asked which candidate
they would most trust to pay back
a loan, 24 per cent of voters chose
Johnson compared to just 17 per
cent for Ken Livingstone.
Tax continues to be an issue,
with almost 40 per cent of voters
believing that Livingstone has not
paid as much as he should and
just one in ten believing he is
honest.
But with the result within the
margin of error much will come
down to the ability of the respec-
tive parties to mobilise their sup-
porters on polling day.
BY JAMES WATERSON
IN BRIEF
Macquarie fear over India tax
n Macquarie's Asia hedge fund has
exited its short positions in Indian
single stock futures in response to a
controversial set of proposed tax rules
that could lower investment returns.
Instead, it has decided to use a futures
contract linked to Indias 50-share NSE
index (Nifty) on the Singapore
Exchange to get its short exposure to
India, according to an investor letter of
the fund. The $1.5bn Macquarie Asian
Alpha Fund also cut India long
exposure in March.
ST-Ericsson to cut 1,700 jobs
nChip maker ST-Ericsson will cut 1,700
jobs and shift a key part of its product to
parent STMicro, forcing the French co-
owner to focus more on its loss-making
and volatile wireless business. ST-
Ericsson said it would partner with
STMicro to develop application proces-
sors, after failing to cut a deal with one of
four other companies. The plan did little
to convince investors the joint venture
was getting back on track and shares of
STMicro accelerated losses after the
statement to close down 13.8 per cent.
Bumi fall sparks Bakries headache
nIndonesian group Bakrie has until
Friday to resolve a covenant breach on a
$437m loan following a drop in the price
of its London-listed coal miner Bumi last
week, sources familiar with the loan said
yesterday. The breach was the latest in a
series of debt problems for Bakrie Group,
one of Indonesia's largest conglomerates
which avoided a debt crisis last year by
selling a stake in Bumi to an Indonesian
investor for $1bn. Credit Suisse sent a
notice on behalf of lenders to the bor-
rower after the breach.
These views are those of the individuals above and
not necessarily those of their company
I dont want any of them, I dont
want a Mayor. Get rid of them. Have
we got anything out of it? Somebodys claiming
our fares will go down. I dont believe any of it.
NICK STEVENSON
LLOYDS OF LONDON

Boriss sense of humour is just the

best, and thats what we are, it
works. Kens a socialist and a pain in the arse. I
say cut him out and get Boris back on the map.
JERRY PRINGLE
MILES SMITH

L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
M
WHO WILL GET YOUR VOTE?
Interviews by Clare Hill
Livingstone has fought his
way back into the race
PORT drinkers raised their glasses,
a knight was converted and one
supporter suggested the Mayor
should join in with some Boris
Dancing its hard to imagine a
more welcoming environment for
the Conservative candidate than
Leadenhall Markets St Georges
Day celebrations.
Yesterday Johnson was cheered
by City crowds as he gave a stump
speech that warned of a return to
the Jurassic epoch if his opponent
Boris takes fight to heart of City
BY JAMES WATERSON newtzilla returned to office.
Jeff Edwards, a hospital porter
dressed as a medieval warrior, was
so impressed that he promptly
knighted the Mayor with a wooden
sword: Normally Im a Labour
voter but that man changed my
mind today. Im from the East End
and hes what we call a geezer.
But Vimal Parekh of Leadenhall
greengrocer Sproutin was unsure
how hell vote on 3 May: Im
undecided. If there was an election
tomorrow Id go with my gut
instinct and vote for Livingstone.
TUESDAY 24 APRIL 2012
6
NEWS
cityam.com
Johnson promised the crowd a modest, non-taxpayer funded celebration if he wins
Ill be voting Boris I just think hes
got a lot more to offer than Ken. Hes
spent a lot of money, but I think that we can
see an improvement on public transport.
GORDON BOTTEN
RELIANCE

%
%
31
43
8
8
50
41
11
8
WESTMINSTER VOTING INTENTION MAYORAL VOTING 1ST PREFERENCE
Conservative Labour Liberal Democrats Other
BY JAMES
WATERSON
MAYORAL
ELECTION
VODAFONE faces a possible shareholder
rebellion over its 1.04bn bid for Cable &
Wireless Worldwide after the ailing tele-
coms companys biggest investor
expressed disappointment at the offer.
Orbis, which holds a 19 per cent stake
in CWW, refused to back Vodafones
offer of 38p per share.
A spokesperson for Orbis said: With
the transaction being accretive in the
first year, the proposed deal is clearly
attractive for Vodafone shareholders.
However, we are concerned that the
offer price does not appear to reflect the
value inherent in CWW.
Two months after admitting it was
considering a bid for CWW, Vodafone
yesterday unveiled a 1.04bn cash offer
for the struggling telco.
The 38p per share bid represents a 92
per cent premium on CWWs last clos-
ing share price before Vodafone
expressed an interest in mid-February.
The telecoms giant said it has unani-
mous backing from CWWs board and
irrevocable undertakings and letters of
intent to vote in favour of the bid from
shareholders representing 18.58 per cent
of the companys stock.
But Vodafone, which insisted the offer
is final and will not be increased,
could struggle to obtain the 75 per cent
shareholder approval it needs for the
scheme to go through if Orbis votes
against the 38p offer.
Credit Suisse and Legal & General,
which hold 5.2 per cent and 3.75 per
cent stakes in CWW respectively and did
not submit letters of intent to back the
offer, could tip the balance against
Vodafone if they side with Orbis.
Vodafone agrees to hand over 1bn
BY LAUREN DAVIDSON
Vodafone has put its long-standing team at UBS,
headed by global co-head of investment bank-
ing Simon Warshaw, on the case to guide it
through its acquisition of CWW.
Oxford-educatedWarshawjoinedtheSwiss
bank in 1986 and has under his belt the former
positions of head of EMEA investment banking,
joint head of UK investment banking and global
head of UBS media investment banking arm.
Vodafones advisory team at UBS includes
Jonathan Rowley, joint head of mergers and
acquisitions EMEA, Mark Lewisohn, global head
ADVISERS VODAFONE AND CABLE & WIRELESS WORLDWIDE
SIMON WARSHAW
UBS
J
UST three months ago,
everyone thought Cable &
Wireless Worldwide was a
busted flush. After de-merging
from the C&W mobile business in
2010, it was forced to make three
profit warnings and went through
the same number of chief
executives. A roster of impressive
blue-chip clients couldnt hide the
fact it lacked the scale and
strategic vision needed to recover.
Then we entered the carcass
phase. Bidders started to evaluate
CWW not on its day-to-day
business selling communications
services to corporates, but rather
on the prize asset it had buried in
the back garden: a 20,000km fibre
optic broadband network. Its
shares, languishing at 19.8p in
February, surged by over 90 per
cent.
It is primarily for this network
not the companys client base or its
people that Vodafone has agreed
to pay 1bn. The mobile giant,
which is dealing with a surge in 3G
traffic, will be able to offload some
of this onto the CWW fibre
network rather than paying the
likes of BT hundreds of millions to
piggyback on their pipes. It will
also beef up its existing offering to
big corporates by offering them so-
called unified communications
solutions a mixture of fixed-line
and mobile services.
This carcass phase is something
were increasingly seeing with once
great technology companies, firms
who were pioneers but who have
failed to keep pace with newer
rivals. It suggests that some of the
laggards of the tech world deserve
to be reassessed, not on their
chances of staging a comeback but
on the treasure they have got
hidden away.
When Google agreed to pay
Motorola Mobility for $12.5bn
(7.7bn), it had very little interest
in the companys main business as
a handset manufacturer. If the web
giant had wanted to develop its
own mobile phone, it would have
gone after a more successful firm
like Taiwans HTC. Instead it wants
BOTTOM
LINE
DAVID CROW
Cable & Wireless Worldwide PLC
17Apr 18Apr 19Apr 20Apr 23Apr
37.50
35.00
32.50
30.00
p 35.90
23Apr
TUESDAY 24 APRIL 2012
8
NEWSMERGER MONDAY
cityam.com
Motorola Mobility for its patents,
allowing it to compete in the so-
called patent wars against Apple.
So what of the other technology
companies who are struggling.
Could they too be worth another
look? Nokia, which was once the
undeniable king of mobile phones,
has had a torrid time of late,
marked by a string of profit
warnings and no obvious route
back to good health. Yet many
analysts believe that its own
patents it has at least 10,000 are
worth much more than its 10.5bn
market value.
Blackberry has lost 75 per cent
of its value over the last year, but it
too has some prize assets: a massive
corporate client base and the best
keyboard in the mobile business,
which is of course protected by
patents. Kodak might be
technically bankrupt, but it values
its own patent portfolio at $2.6bn.
Yahoo is approaching irrelevance,
but as one of the first major web
firms its intellectual property must
be incredibly valuable.
These titans of technology might
be nearing the end but they could
be worth more dead than alive.
Carcass of a failed tech firm may
be worth more than you thought
Both funds declined to comment.
Vodafone chief executive Vittorio Colao
said the acquisition will create a lead-
ing integrated player in the enterprise
segment of the UK communications
market and bring attractive cost savings
to our UK and international operations.
The deal will make Vodafone the sec-
ond largest British telecoms operator by
UK revenues behind BT, with domestic
revenue of 6.97bn based on last years
combined results.
of TMT, and Christian Lesueur, head of EMEA
media and telecoms investment banking.
The UBS squad also led the telecoms giant
through its $5.9bn merger of Vodafone Australia
with Hutchison 3G Australia in 2009.
Batting on the Cable & Wireless Worldwide side
is a Barclays and Rothschild hybrid, led by Mark
Warham and Nigel Higgins respectively.
Warham, who formerly worked for 3i, Schroders
and Morgan Stanley, is co-head of Barclays
Capitals EMEA mergers and acquisitions divi-
sion. He served as director general of the
Takeover Panel in 2006 and 2007.
Higgins has been chief executive of Rothschild
Group for two years and is also co-head of the
banks global nancial advisory division. He for-
merly served as Rothschilds head of UK invest-
ment banking and co-head of the banks
European investment banking activities.
CWW chairman John Barton (right) and the rest of the board unanimously backed the bid from
CWW is also working with Jack Callaway and
Stuart Ord from BarCap and Richard Murley and
Jeremy Boardman from Rothschild.
Vodafones brokers are Citi and JP Morgan
Cazenove, while Deutsche Bank and Jefferies
HoareGovett arejoint corporatebrokers to
CWW, marking Hoare Govetts rst sizeable M&A
job since being bought by Jefferies in February.
Chris Zeal, who was with Hoare Govett in its RBS
days, told City A.M., The joy of Jefferies is to be
with people who are equity focussed. This is the
rst large M&A transaction within the Jefferies
enterprise and its good that were this active.
On the legal side, Iain Fenn and Clodagh Hayes of
Linklaters which also advised on the
Glencore/Xstrata deal are acting for Vodafone.
CWWs lawyers are Chris Haynes and James
Palmer at Herbert Smith.
Lauren Davidson
david.crow@cityam.com
Follow me on Twitter: @davidcrow83
G
E
T
T
Y
for ailing CWW
Vodafone Group PLC
17Apr 18Apr 19Apr 20Apr 23Apr
169
170
171
172
173
174
175
176 p
171.04
23Apr
TUESDAY 24 APRIL 2012
9
NEWSMERGER MONDAY
cityam.com
TIMELINE | CABLE & WIRELESS
1860s
Sir John Pender founds a number of British telegraph
companies .
1928
Various radio and telegraph companies throughout
the British Empire merge into Imperial & International
Communications Limited, which becomes Cable and
Wireless Limited in 1934.
1947
TheLabour government nationalises Cable&
Wireless. All its UK assets areintegratedwiththoseof
the Post Office.
1981
Cable & Wireless is one of the first nationalised com-
panies to be privatised under Margaret Thatchers
government. It launches a subsidiary, Mercury
Communications, to rival BT.
1987
Cable & Wireless acquires TDX Network, a long dis-
tance fibre network in the US which is re-dubbed
Cable&Wireless Communications.
1997-2005
Cable & Wireless expands its business by making
acquisitions across Central and North America and
the British Isles.
26 March 2010
Cable & Wireless Communications demerges from
Cable & Wireless, which is renamed Cable & Wireless
Worldwide (CWW).
28 June 2011
CWW chief executive Jim Marsh resigns, after issuing
three profit warnings in just over a year, to be
replaced by then-chairman John Pluthero.
14 November 2011
CWW posts a half-year pre-tax loss of 433m com-
pared to a 53m profit the year before. Chief execu-
tive John Pluthero steps down and is replaced by
Gavin Darby, formerly an executive at Vodafone.
13 February 2012
Press reports force Vodafone to admit it is consider-
ing making an offer to CWW, whose shares jump by
35 per cent.
18 April 2012
Mumbai-based Tata Communications, which had
been raising money to bid for CWW, walks away from
discussions.
23 April 2012
Vodafone offers 38p per share, or 1.04bn, for CWW.
Vodafone, led by chief Vittorio Colao (left)
Swiss food group Nestl is to buy
US drugmaker Pfizers baby food
business for $11.85bn, beating
out French rival Danone in the
battle for dominance of fast-
growing emerging markets.
The worlds biggest food
company had to dig deeper than
expected to win the high-stakes
fight for Pfizer Nutrition, which
makes 85 per cent of its sales in
emerging markets and is Nestls
biggest deal to date.
The price tag is high, however
Nestl is securing a high
growth/margin business with
high exposure in the emerging
markets," said Vontobel analyst
Jean-Philippe Bertschy.
Nestl said the deal would add
to earnings per share from the
first year, and would allow cost
synergies of $160m.
Bertschy expects it to add
about 0.5 per cent to earnings
per share in the first year and
1.5 per cent in the following
years.
Nestl eats up Pfizer division
BY HARRY BANKS
PHARMA giant AstraZeneca is
poised to snap up US firm Ardea
Biosciences in a bid to boost its
diminishing pipeline of new drugs.
The $1.26bn (782m) deal will
grant AstraZeneca a nearly-cleared
treatment for gout, described by
boss David Brennan yesterday as
an excellent opportunity to
leverage our global specialty and
primary care sales and
marketing
capabilities.
The Ardea team has
done a great job
developing
lesinurad along
with a
promising
next-
generation
gout
programme,
Brennan
added. These
compounds
have real
AstraZeneca set
for $1.3bn deal
for biotech firm
BY JULIAN HARRIS
potential to benefit patients.
The embattled chief executive is
under pressure from shareholders
unhappy at the firms prospects.
New non-executive chairman Leif
Johansson takes over in September,
a boardroom development that
could turn up the heat on
Brennan.
AstraZeneca will pay $32 per
share for the company, it
announced yesterday, a 54 per cent
premium on Ardeas closing price
last week.
Its own shares dipped 1.9 per
cent in London yesterday, while
stocks were down throughout the
European drugs sector.
The deal seems consistent with
management strategy although
the target indication of the lead
product candidate is gout, which
has not, traditionally, been an easy
target for drug development,
commented analyst Savvas
Neophytou from Panmure Gordon
yesterday. AstraZenecas first
quarter results are expected this
Thursday, 26 April, with Panmure
Gordon predicting a fall in revenue
of around five per cent yet
retaining its buy
recommendation on the stock.
AstraZeneca
brought in Morgan
Stanley to advise on
its acquisition on
Ardea, with the
bank hoping to
secure business on
future deals. The
pharma giant has signalled its intention
to snap up more rms at around the
$1bn dollar mark. Morgan Stanley also
advised fellow drug rm
GlaxoSmithKline in its failed bid to cap-
ture Human Genome Sciences. Ardea,
meanwhile, was advised by Bank of
America Merrill Lynch.
ADVISERS
MORGAN STANLEY
BANK OF AMERICA
MERRILL LYNCH
CEO David Brennan
is under pressure
Vodafone will benefit from CWWs
fixed-line network, which will take some
of the pressure off its jam-packed wire-
less traffic, and will be able to offer its
clients a mixture of communications
services via one provider.
But the telecoms giant denied that
CWWs capital allowances are key to the
rationale underpinning the offer. It
claimed, Vodafone does not believe it
can utilise CWWs tax losses.
CWWs shares, which have climbed 80
per cent since Vodafone came to the
table in mid-February but plunged when
Tata Communications declined to bid
last week, jumped 12 per cent to 36p.
DATA and analytics provider
Thomson Reuters said yesterday it
had agreed to sell its healthcare
unit to an affiliate of private
equity firm Veritas Capital for
$1.25bn (776m).
The deal, likely to close in the
next few months, will help to free
up cash at Thomson Reuters,
which has seen its share price fall
30 per cent over the past 12
months.
Thomson Reuters
sells healthcare arm
BY ELIZABETH FOURNIER
The move to buy Ardea is the
latest bid by a multinational
pharmaceutical firm to acquire
relatively small biotechnology
innovators.
GlaxoSmithKline said last week
it had offered to buy Human
Genome Sciences for $2.6bn, in a
bid rejected by the US firm, while
Roche has tried unsuccessfully to
buy Illumina for $6.8bn.
We will continue to do these
external deals, said AstraZenecas
research head Martin Mackay
yesterday. I think we will be
talking about more as the year
goes on.
AstraZeneca PLC
17Apr 18Apr 19Apr 20Apr 23Apr
2,830
2,840
2,850
2,800
2,810
2,820
2,860
2,870 p
2,811.50
23Apr
Treasury caves in to
MPs on Bank scrutiny
FIRMS using and dealing
derivatives face the prospect of
regulatory chaos due to the EU
and US regimes colliding, EU
commissioner Michel Barnier has
warned his American
counterparts.
A spokesperson for the
commissioner said that he has
written to US authorities to
suggest putting off rules that will
hit any firm dealing a certain
volume of derivatives in American
territory, which could include
some energy and commodity
traders.
Firms that trade in both regions
will be hit by two new major
regulatory overhauls this year,
with little work having been done
on how they will interact.
Commissioner Barnier has sent
letters... encouraging them to
delay the swap dealer registration
process as regards EU firms until
there is legal clarity about the
substantive conditions that such
registration will entail, a
spokesperson told Reuters.
Swaps dealers
get an unlikely
hero in Barnier
BY JULIET SAMUEL
G
E
T
T
Y
THE TREASURY has written to banks
to reassure them that it will go to
battle with the EU over new pen-
sions regulation that it says would
make saving for retirement much
more expensive.
In a private letter sent to lenders
and seen by City A.M., the Treasurys
financial secretary Mark Hoban
expresses serious concerns about
the way the EU is going about regu-
lating pensions.
At issue is a botched draft of pen-
sion fund regulation by a new
European regulator, the European
Insurance and Occupational
Pensions Authority (EIOPA), which
has used insurance regulations as a
template for writing its advice on
pensions regulations, something
UK prepares
for pensions
battle with EU
BY JULIET SAMUEL
Hoban says is inappropriate.
I have serious concerns that har-
monising occupational pension
scheme capital rules with Solvency II
carries a strong risk of locking capital
in pension schemes, reducing invest-
ment in growth and significantly,
Hoban tells banks in his letter.
Implementing EIOPAs recommen-
dation would require pension funds
to hold capital in reserve in a similar
way to insurers, despite EU commis-
sioner Michel Barnier saying that this
is not the aim of the regulatory over-
haul. Firms argue the rules would
create a black hole worth billions of
pounds in otherwise adequate pen-
sion funds.
I am very keen for my officials to
work closely with the British
Bankers Association on this, Hoban
says, referring to UK banks trade
body.
THE GOVERNMENT caved in to
demands from the influential
Treasury Select Committee of MPs
last night, agreeing to reopen a
discussion on how to hold the Bank
of England to account in its
flagship financial services reform
bill.
Andrew Tyrie MP, chair of the
committee, withdrew an
amendment that would
require the Court of the Bank
of England to publish
extensive reviews of its
decisions after the
event in order to
hold it to account.
Tyrie dropped
the motion after
Treasury
minister Mark
Hoban
signalled
BY JULIET SAMUEL
that the government will
implement the changes itself once
the bill returns from a vote in the
House of Lords.
Before Hoban indicated that a
climbdown was on the cards, Tyrie
had threatened to send specialist
advisers into the Bank of England
to scrutinise it on behalf of
MPs a position he could take
up again if the Treasury does
not make the concessions.
We will not hesitate to
do [so] if this legislation
remains defective with
respect to the Bank of
England, Tyrie said.
Sending in specialist
advisers was a
somewhat
cumbersome route
but thats why it
would be far
preferable to
improve this
legislation so that
such action...
would not be
necessary.
Mark Hoban has told banks he supports them on the EUs botched pensions reform
Andrew Tyrie
chairs the
committee
THE UKs financial watchdog has lost
a key test of its powers to punish
bankers for alleged supervision
failures after a fine on a senior UBS
banker was overturned yesterday.
In a rare successful appeal against
a fine imposed by the regulator, John
Pottage was cleared of misconduct
by the Upper Tribunal over
compliance failings that occurred
under his supervision at UBSs
British wealth management
business, which he ran.
The Financial Services Authority
(FSA) had sought to fine him
100,000 for alleged failings as the
units boss, even though he was not
personally involved in the
compliance issues.
We think that the actions that Mr
Pottage in fact took prior to July 2007
to deal with the operational and
compliance issues as they arose were
reasonable steps, the Upper
Tribunal said in its ruling.
The FSA said it accepted the
decision, but was undeterred from
pursuing disciplinary action against
senior management.
We have always recognised that
pursuing disciplinary action against
senior management in large firms is
very challenging, said Tracey
McDermott, acting director of
enforcement and financial crime at
the FSA. But we also believe strongly
that senior management must take
responsibility for the businesses they
run.
The case has been watched by rival
banks as a potential precedent-setter
in terms of how far up the ranks
responsibility for failings can go.
Although wins against the FSA are
rare, other senior bankers are
following this route. JP Morgan
dealmaker Ian Hannam was fined
450,000 for market abuse in early
April, a punishment he is appealing.
FSA loses case
against senior
UBS banker
BY HARRY BANKS
THE INSURANCE mis-selling
scandal has become a cash
bonanza for claims management
companies looking to exploit bank
customers, according to consumer
rights advocates Which? magazine
and MoneySavingExpert.com.
They hosted a meeting yesterday,
where major providers of payment
protection insurance (PPI) and
regulators discussed the scandal, in
which thousands of borrowers
were inappropriately sold useless
insurance.
Which? publishing data
suggesting that a quarter of people
Claims companies cash in on PPI
BY JULIET SAMUEL
do not know how to file a
complaint themselves to get their
money back and that claims
management companies, which
offer to file it for them, often take a
30 per cent fee.
Banks say that the companies are
adding to the headache of going
through thousands of complaints
and yesterday pledged to make it
easier for individuals to claim.
The head of Charter UK Paul
Clark, who advises banks on
complaints software, said: Up to
25 per cent of the claims banks are
receiving from [these] companies
are from claimants who never had
a PPI policy in the first place.
TUESDAY 24 APRIL 2012
10
NEWS
cityam.com
Effortless
multitasking with
the new HTC One X
On our award-winning network
Business
Source: Mobile Industry Awards 2011. Android and the Android logo are
trademarks of Google Inc.
Add a landline to
your mobile for
just 10 a month
with Vodafone
One Net Express
No need for a
fixed landline
No call divert charges
3000 UK landline mins
(starting 01, 02, 03)
Terms apply. Subject to credit check. Lines open Mon-Fri 8am-8pm, Sat 9am-5pm.
Calls from landlines are free. Standard network charges apply to calls made from
a mobile phone.
Call 08080 101 204
Visit your local Vodafone store today
Vodafone Business Single Plan
900 mins Mins to UK mobiles or landlines (starting 01, 02, 03)
Standard UK texts 250 texts
3000 mins Mins to other Vodafone UK mobiles
UK mobile internet & email usage on your phone 750MB
BT Openzone Wi-Fi 2GB
35
a month
24-month contract
Prices exclude VAT
Quad core processor for better power management
and prolonged battery life
HTC One X Free
The new
jobs website
for London
professionals
The new
jobs website
for London
professionals
C
I
T
Y
A
M
C
A
R
E
E
R
S
.
c
o
m
In association with Champagne reception sponsor Produced by
cityamactivetrader.com
Where the markets are going, which asset classes are best, how to make
the most of global macroeconomic uncertainty, the best techniques and
models and how to use social media and charting to beat the pros.
Over 30 of the worlds top
trading experts
15 exhibitors showcasing the
latest trading technology
Take your trading to the next
level with a day of masterclasses
Network over lunch and at our
free champagne reception
DAVID
JONES
TIM
GUINNESS
ALLISTER
HEATH
RICHARD
FARLEIGH
LEX
VAN DAM
DONT MISS OUR BLOCKBUSTER
CONFERENCE
TRADING & INVESTMENT
DAVID
KUO
GUIDO
FAWKES
STEPHEN
SEDGWICK
JOHN
HARDY
GARY
BAKER
IN BRIEF
Digby Jones joins Flybe board
nAirline Flybe said yesterday Lord
Digby Jones would be joining the
company as a non executive director.
The former trade minister and director
general of the CBI has a string of other
boardroom roles such as the
chairmanship of Triumph motorcycles.
Carnivals Costa chief steps down
nThe chief executive officer of the
Carnival unit whose ship ran aground off
the coast of Italy in January is retiring and
will be replaced by the head of another of
the cruise operator's European lines. Pier
Luigi Foschi, 65, will retire as Costa
Crociere chief on 1 July, but will remain as
Costa's chairman and keep his seat on
Carnival's board. Foschi will be replaced
by Michael Thamm of Aida Cruises.
ICE Futures to auction CO2 permits
nBritain has awarded a contract to ICE
Futures Europe to auction carbon permits
in the third phase (2013-2020) of the EU
emissions trading scheme in a move that
will boost volume on the most liquid car-
bon bourse. They could be auctioned as
early as November, subject to approval by
the EU.
Wal-Mart faces US investigation
nUS politicians said yesterday they were
launching an investigation into allega-
tions of bribery at Wal-Marts Mexican
affiliate. Two Democratic lawmakers sent
a letter to Wal-Mart chief executive Mike
Duke to request a face-to-face meeting
with company officials over claims the
company halted an internal probe into
bribery in Mexico. Wal-Mart shares fell 4.7
per cent yesterday.
OFCOM yesterday announced it has
launched an investigation into Sky
News after the broadcaster accessed
private email accounts.
Prompted by Sky News admission a
few weeks ago that it had authorised
a journalist to access the email of indi-
viduals suspected of criminal activi-
ty, Ofcom is investigating fairness
and privacy at the news channel.
The media watchdogs announce-
ment coincided with the appearance
of John Ryley, head of Sky News, at the
Leveson Inquiry yesterday.
Lord Justice Leveson interrupted
proceedings to demand of Ryley:
What you were doing wasnt merely
invading somebodys privacy, it was
breaching the criminal law.
Ryley responded that it was before
conceding that Ofcoms broadcasting
code does not give any authority to
breach the criminal law.
The media regulator is examining
the actions of Sky News reporter
Gerard Tubb, who was given permis-
sion by the channels executives to
access the email account of canoe
man John Darwin.
Sky News faces
Ofcom probe
over hacking
BY LAUREN DAVIDSON
Darwin used a canoeing accident in
2002 to fake his own death so his wife
Anne could claim thousands of
pounds of life insurance and pensions.
Sky News said it handed the informa-
tion it obtained to the police and that
it was pivotal in the successful prose-
cution of the Darwins.
The broadcaster added: We stand by
these actions as editorially justified.
There are rare occasions where it is jus-
tified for a journalist to commit an
offence in the public interest.
This inquiry is distinct from Ofcoms
probe into whether BSkyB is a fit and
proper broadcaster, although a nega-
tive ruling for the news channel could
reflect badly on its parent body.
British Sky Broadcasting Group PLC
17Apr 18Apr 19Apr 20Apr 23Apr
650
660
670
680
690 p 679.00
23Apr
TUESDAY 24 APRIL 2012
12
NEWS
cityam.com
Defence company Cobham has
hired Robert Murphy, a member of
BAE Systems' executive committee,
as its new chief executive.
Murphy will take up his new
role on 25 June, replacing Andy
Stevens, who is taking early
retirement due to a recurring back
injury but will remain on the
board until further notice to
smooth the handover.
Murphys appointment marks
the end of a five-month search for
the new chief exec of Cobham. He
is currently executive vice
president of BAE Systems product
sectors, based in the US. He will
relocate to the UK to be near
BY MARION DAKERS
Cobhams Dorset offices.
BAE confirmed the move,
adding in a short statement that
employees who were working
under him will report to chief
executive Linda Hudson until a
replacement can be found.
FTSE 250-listed Cobham is
currently pursuing Danish
satellite communications company
Thrane & Thrane, renewing its
270m offer earlier this month
having withdrawn its bid.
The firm has said its offer
represents a 43 per cent premium
to the price at which Thrane &
Thrane shares were trading before
news of its approach broke in
February.
Robert Murphy (inset) is taking over as Cobhams chief
Cobham picks BAE man Murray
to be its new chief executive
G
E
T
T
Y
THE dismantling of BAAs British
interests moved forward yesterday
when it agreed to sell Edinburgh air-
port to City airport owner Global
Infrastructure Partners (GIP) for a
surprise 807m.
GIP, an investment fund founded
by Credit Suisse and General Electric,
beat a consortium led by JP Morgan
Asset Managements infrastructure
fund. The price dwarfs the 500m
figure expected in the City and
reflects the intense competition for
the airport, which also attracted the
interest of buyout groups 3i and
Carlyle.
GIP is expected to quicken the
amount of time passengers spend in
check-in, security and baggage han-
dling. Chairman Adebayo Ogunlesi
said: We see significant opportunity
to apply our tested and successful
operational expertise and our knowl-
edge of the global airports sector to
develop and enhance the perform-
ance of Edinburgh Airport.
BAA offloads
Edinburgh for
shock 800m
BY PETER EDWARDS The airport attracted 9.3m passen-
gers last year and generated earnings
before interest, tax, depreciation and
amortisation of 48.3m. It was recent-
ly snubbed by Ryanair, which reduced
its flights there, but yesterday the
budget carrier said the deal would
free it from the dead hand of BAA.
JP Morgan Asset Management had
led a consortium including Incheon,
South Koreas airport authority and
US teachers pension fund TIAA-Cref.
However, TIAA-Cref pulled out earlier
this month.
BAA, part of Spanish infrastructure
company Ferrovial, owns Heathrow,
Stansted, Southampton, Glasgow and
Aberdeen airports.
It was made to sell one of its
Scottish airports by the Competition
Commission, and is contesting a rul-
ing that it must offload Stansted.
If Stansted comes on the market
then GIP is unlikely to be allowed to
bid because of its controlling stakes
in Gatwick, which it bought from
BAA for 1.5bn in 2009, as well as City
airport.
T
HERES been a drama playing
out over the past few days in
London that in recent times we
havent seen enough of.
A maker of luxury cashmere
sweaters worn by Prince William and
James Bond met fund managers to
gauge interest in a share flotation.
The fund management groups in
attendance, who included Citadel
Group, Capital Ward Investments
and Marshall Wace, were generally
positive about the company and did-
nt automatically feel they were being
ripped off by greedy private equity
sellers advised by sharp-elbowed pri-
vate equity advisers.
At the end of the presentations, in
which the company extolled the
virtues of paying above average wages
to its workers in order to keep skills
from being exported to lower wage
regions, the main worry for most
institutional investors was whether
they would manage to get hold of any
stock, with the offer eleven times
oversubscribed.
So far so good, but the problem
with this story as far as London is con-
cerned is that the company, Brunello
Cucinelli, is Italian and is listing not
in London but in Milan.
Luxury goods companies tend to
head for the Far East these days but
the firms eponymous owner
Brunello Cucinelli is said to be quite
nationalistic and preferred a float in
his home market.
How London could do with such an
enthusiastic backer.
Whatever else the London Stock
Exchange, the Mayor of London and
the Lord Mayor of the City of London
are getting up to, between them they
have failed miserably to make the
case for IPOs returning to London.
The last major non-Russian IPO was
in July 2011 when Ophir Energy suc-
cessfully raised 233m in London.
Indeed, London tends to make a rea-
sonable case to oil and gas companies
but in so many other sectors it is fail-
ing badly. I went to lunch last week
with the London head of a leading
investment bank, who said his house
was advising at least two UK-based
companies on intended flotations in
overseas markets.
It is difficult to make complete
sense of the comments of David
Wootton, the Lord Mayor of the City
of London, when he writes in City A.M.
that London remains the worlds pre-
eminent financial centre when such
an important aspect of finance a
market on which growth companies
can raise new equity remains effec-
tively closed for business.
Of course, the disappointments
that followed the IPOs of companies
such as Promethean World and
Supergroup, both of whom suffered
from sizeable share price falls last
week, doesnt help Londons case.
But the time has now come for
action. An investment banker, who
himself doesnt much mind which
jurisdiction his companies float in,
recently said that the more young
businesses go overseas for their equi-
ty capital, the more that top talent
will follow the money. That must be
the likely outcome if the current
trend continues.
Or instead the great and the good in
the City need to persuade those who
are thinking of going elsewhere that
they will do all they can to make the
market attractive enough here.
INSIDE
TRACK
DAVID HELLIER
GIP boss Adebayo Ogunlesi has triumphed in another takeover battle
TUESDAY 24 APRIL 2012
13
NEWS
cityam.com
2 for 1: Cannot be used with other ofers. From 69-125 ranges, including standard PENTAX single vision lenses. Second pair from the same price range
or below and to the same prescription. 1.5 scratch-resistant varifocal, bifocal and other single vision lenses included in ofer you just pay for lenses in
your rst pair. Extra Options available at an additional charge on both pairs. Excludes safety eyewear. SKU 24812306, 25263770. 2012 Specsavers. All
rights reserved.
Book an eye test online at specsavers.co.uk
or call 0800 0680 241
5 EYE TEST
Valid for one test booked on or before 30th June 2012 at discounted price of only 5. Present
voucher at time of test. Cannot be exchanged for cash, used with other vouchers or redeemed by
customers already entitled to a free NHS eye test. One per person, at participating Specsavers
stores only. CODE 8129
London needs a champion to revive new issue market
david.hellier@cityam.com
Follow me on Twitter: @hellierd
Former City worker Ajit
Chambers has been in touch to
say that he is being partnered by
a billionaire investor to make a
25m offer for the disused
Brompton Road railway station
in west London.
Chambers left the City to set up
the Old Underground Company
with a mission to make some-
thing of Londons disused Tube
stations. Hes talked to various
would-be partners about holding
conferences, converting the sta-
tions into rock climbing venues
and even holding wedding cere-
monies.
In an ideal world Chambers
would re-open 26 empty Tube
stations, deep-level shelters and
man-made caverns for the pub-
lic.
He first raised the idea with
the Mayor in a public meeting a
couple of years ago, claiming
that he could create a company
with 200m turnover. Boris
Johnson announced that the
scheme was marvellous.
The problem he now has with
Brompton Road, however, is that
the station is currently not for
sale, according to the Ministry of
Defence (MoD).
The MoD says that all of its
sites, including Brompton Road
are under review.
Were reviewing the estate,
says a press person, clearly agi-
tated by the prospect of having
to answer questions about the
proposed plans. And if we do
decide to sell assets they will be
sold under a competitive tender-
ing process to get the best possi-
ble price for the department.
Im afraid to say theres noth-
ing more to go forward with at
this stage.
The MoD says there have been
discussions with Chambers but
these were in November of last
year and a second meeting was
cancelled.
The station itself is sometimes
used for training purposes and is
therefore not a vacant site, says
the spokesperson.
Maybe Chambers needs some
help from Boris to get the project
off the ground.
Entrepreneur makes a
25m offer for station
Got A Story? Email
thecapitalist@cityam.com
14
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Many economists have been
anticipating the return of the
drachma for some time but up until now
attempts to use the old Greek
currency would have proved
futile. However, this week the
Real Greek restaurant on
Bankside is accepting the
drachma for side dishes
in a revival of the
currency that went out
of circulation more than ten years ago.
Diners dont have to worry about an
exchange rate conversion (one suspects
the drachma wont convert favourably
against most currencies) because the
Real Greek is asking customers to
give what they think a dish is
worth rather pay a fixed price.
So, it may be time to search out
all those old Greek notes and
coins.
TUESDAY 24 APRIL 2012
The drachma makes a City return
Ajit Chambers faces a stumbling block in his plans for Brompton Road
Outgoing SFO boss lets off
steam about Al Yamamah
The outgoing head of the Serious
Fraud Office has decided not to
go quietly.
As his four-year term comes to
an end, Richard Alderman has
concluded that massive damage
was done to the UKs reputation
for dealing with corruption when
it shelved a bribery investigation
into the Al Yamamah arms deal
with Saudi Arabia.
I gave a presentation to some
judges in another jurisdiction in
another part of the world about
the UKs tough approach to
bribery. They listened. They
smiled. And, at the end of it, they
said, And now, Richard, tell us
about BAE and Saudi Arabia, he
told investigative website Exaro
(www.exaronews.com).
The damage that was done by
what happened was great and
will last for a very long time, he
said. It was very regrettable and
very unfortunate.
The SFOs former head Robert
Wardle took the decision to drop
the probe but only after much
pressure from Tony Blair.
Richard Alderman has hit out
BREWER SABMiller said yesterday
its European chief Alan Clark will
succeed long-standing chief exec
Graham Mackay in July 2013 in a
reshuffle that will see the 62-year
old Mackay become chairman.
The move appears to fly in the
face of the UK corporate
governance code, which suggests
chief executives should not go on
to become chairman of the same
group, although it can be allowed if
the firm consults its shareholders.
Clark will be appointed chief
operating officer at the groups
AGM in July. Meanwhile Meyer
Kahn will retire as chairman, and
Sue Clark, director of corporate
affairs, will take over from Alan
Clark as head of European
operations.
BY HARRY BANKS
THE average trade size of FTSE 100
stocks on the London Stock Exchange
(LSE) shrank dramatically during the
last year, according to research by
Morgan Stanley that sheds light on
the effect that automated trading is
having on the market.
LSE data shows that the average
size of a FTSE 100 trade was just over
6,081 in January 2012, down from
7,817 12 months previously.
The change represents a 22 per cent
decline in trade size.
Brian Gallagher, managing director
and head of European electronic
trading at Morgan Stanley, said that
the trend is set to continue: The
average trade size will continue to be
atomised as algorithmic trading
grows. High-frequency trading firms
post quotes in multiple venues, and
many brokers have invested in tech-
nology that allows them to hit sever-
al quotes at one time.
This has driven marketmakers and
high-frequency traders to quote even
smaller trades, and the overall trade
size will continue to get smaller, he
Computerised
trading shrinks
FTSE 100 deals
BY CLARE HILL
told Financial News.
Trading is becoming faster and
more compact, contrasting starkly
with a decade ago when the average
trade of FTSE 100 stock on the LSE
was around 60,000.
High-frequency traders, also known
as black-box players, plug algorithms
into computers to generate numer-
ous, lightning-speed automatic trades
that are designed to make money
from arbitrage on razor-thin price dif-
ferences and movements.
Over the past ten years it has grown
to become the dominant source of
liquidity for exchanges and alterna-
tive trading systems but it has attract-
ed the interest of regulators.
As a result, exchanges including the
LSE, Deutsche Boerse and Nasdaq
have all recently announced fines to
cut out speculative trading in high
volumes that some of the high-speed
traders engage in.
The industry hit the headlines in
May 2010, when it was blamed for the
flash crash in the United States,
when the stock market plummeted
over a 1,000 points, or nearly 10 per
cent, in a matter of minutes.
Alan Clark (top) will replace Graham Mackay (l), while Sue Clark (r) will be Europe head
SABMiller PLC
17Apr 18Apr 19Apr 20Apr 23Apr
2,540
2,560
2,580
2,600
2,620
p
2,590.50
23Apr
VIDEO rental company Netflix last
night reported a first-quarter loss
as the company pushed ahead with
its expansion into international
markets.
Netflix posted first-quarter
revenue of $870m, up 21 per cent
from a year earlier. Net income fell,
and the company reported an
earnings loss of eight cents a share.
Stocks, which had dropped four
per cent during the day, collapsed
in after hours trading on the firms
gloomy outlook, nosediving by a
further 16 per cent.
Netflix shares
tank after loss
BY HARRY BANKS
TUESDAY 24 APRIL 2012
15
NEWS
cityam.com
THE HURLINGHAM CLUB & PARK, FULHAM, LONDON SW6
MINT
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.
An exciting range of hospitality options
to suit all budgets with prices from just
150 plus VAT per person.
Book now for a remarkable experience.
Telephone 0207 936 5284 or email
rachel@cityevents.uk.com.
The Best Corporate Day Out - as voted by CITY AM
Winner of Best Sports Attraction - London Lifestyle Awards 2010 & 2011
www.mintpolointhepark.com
For more information visit
SABMiller picks Alan Clark to
replace Mackay as chief exec
INVESCO is trying to sell its $18bn
(11.2bn) wealth management
business, according to five sources.
The Atlanta-based asset
management company wants to sell
Atlantic Trust Private Wealth
Management, which has $18bn in
assets under management, because
it is not core to its business, three of
the sources said.
An Invesco spokesman declined
to comment.
Atlantic Trust has 11 offices
across the US and serves clients
with at least $5m in assets.
Invesco aims to
sell $18bn arm
BY HARRY BANKS
STAGECOACH yesterday reported
growth in its rail business, which
includes London commuter
franchise South West trains.
The FTSE 250 transport company
gave an upbeat forecast for 2012
across its businesses.
Stagecoach said that its like-for-
like sales across its UK rail
operations had risen by 8.8 per cent
in the 48 weeks to 1 April. Its
regional UK bus business posted a
2.7 per cent increase in like-for-like
sales weaker than rail.
That mirrored rival FirstGroup
which said last month that lower
economic activity, particularly in
Scotland and the North of England,
had taken its toll on its bus division.
However, Stagecoachs North
America bus operations posted a 14
per cent jump in like-for-like sales.
The US market has been a bright
spot for UK transport operators.
National Express Group also
reported a five per cent increase in
North America revenue last month
while FirstGroup said its US school
bus and Greyhound operations
continued to perform well.
The company said: Overall
current trading remains good. We
believe the prospects for the group
remain positive and that each
wholly owned divisions remain well
placed to at least maintain their
level of operating profit in the year
to 30 April 2013.
UK rail division
gives a boost
to Stagecoach
BY HARRY BANKS
ROLLS-Royce yesterday said it had
won a $598m (371m) contract to
provide engines for the US military.
The 268 engines will be used in V-
22 Osprey aircraft.
Rolls-Royce is the sole manufactur-
er of the engines for the V-22 and has
a string of contracts with the US
armed forces.
Patricia OConnell, Rolls-Royces
president of customer business for
North America, said: Rolls-Royce
continues to be the world leader in
tilt-rotor engines and this long-term
contract reflects the confidence our
customer has in our expertise and
our technology.
Throughout the length of this con-
tract, we will strive to further
improve performance and capability
of this unique aircraft.
Rolls-Royce said the V-22 aircraft
can carry more troops, fly faster and
has greater range than the helicop-
ters it will replace. The engines allow
the aircraft to take off and land like a
helicopter, but with better perform-
ance.
The manufacturer said that 70
Rolls-Royce and
US army agree
371m contract
BY JOHN DUNNE
engines will be delivered in the first
year of the contract for $151m.
A series of British engineers turned
in positive trading results last week,
helping to buoy the sector.
Rotork, which makes valve control
systems for the oil, gas and water
industries, said first-quarter orders
rose 21 per cent, helped partly by
growth in its gears business.
IMI reported higher first-quarter
sales after a strong performance from
its service arm, which deals with
power generation.
Rolls-Royce provides engines for 500
airlines and 160 armed forces. It
employs over 40,000 people in over 50
countries.
Stagecoach chief executive Brian Souter sees promise in the firms rail division
C
I
T
Y

A
M
Rolls-Royce Holding PLC
17Apr 18Apr 19Apr 20Apr 23Apr
820
830
840
850
860 p
815.50
23Apr
Its a very satisfactory statement which provides scope for a modest
increase in our FY13 earnings forecast. But the good performance is fully reect-
ed in the share price, which seems to assume more growth in the US than
we consider likely. We stick with our reduce recommendation.
ANALYST VIEWS

While some slowing in revenue growth was seen, the update broadly
reassured investors. Performance for its rail business remains solid, while expo-
sure to the more buoyant US economy continues to serve it well. As such
analyst opinion currently denotes a buy.

The message is reassuring the statement that the company expects all
divisions to at least maintain protability has particular meaning for UK Bus
services. With little dependency on concessions or contracts, it has con-
sistently overperformed UK average growth rates.

WHAT IS THE OUTLOOK

FOR STAGECOACH IN 2012
AND BEYOND? By John Dunne
DOUGLAS MCNEILL CHARLES STANLEY

KEITH BOWMAN HARGREAVES LANSDOWN

PAUL HICKMAN PEEL HUNT

TUESDAY 24 APRIL 2012
16
NEWS
cityam.com
IN BRIEF
BP sues Argentinian firm Bridas
nBP yesterday sued Argentinas Bridas
Corp over a collapsed $7.06bn (4.37bn)
asset sale, saying it is willing to pay a
$700m breakup fee so long as it will not
face fraud claims arising from its
conduct. The lawsuit stemmed from the
November 2011 collapse of BPs plan to
sell its 60 per cent stake in crude oil
producer Pan American Energy to
Bridas, which owns the remainder.
Borders dives despite gas find
n Oil explorer Borders & Southern
yesterday said it made a significant
discovery of gas condensate off the
coast of the Falkland Islands. It said that
a well drilled on the Darwin prospect off
the south coast of the Falklands found
the liquid, which often trades at a
premium to crude oil. But shares in the
Aim-listed company fell by more than
30 per cent as analysts said that the find
could take a long time to be
commercially successful.
Gulf Keystone hails its best well
n Gulf Keystone, which focuses on oil
projects in Kurdistan, said that its
Shaikan-4 well was producing 24,000
barrels of crude a day on test, making it
the companys best performing well. The
companys shares surged by more than 11
per cent after the upbeat update.
FRENCH utility GDF Suez
yesterday posted a 5.7 per cent
rise in first-quarter core
earnings, thanks to growing
demand for natural gas and
contract wins in fast-growing
emerging markets through
British unit International Power.
At its annual shareholder
meeting yesterday, GDF Suez
confirmed it would detail its
nuclear review by mid-year, in
the wake of Japans Fukushima
scare and countries subsequently
spurning nuclear power.
GDF Suez said first-quarter
core profit, or earnings before
interest, tax, depreciation and
amortisation rose to 5.8bn on
revenue up 10.5 per cent to
28.2bn.
The group still expects 2012
net recurring income to grow to
between 3.7bn and 4.2bn,
provided it completes the
acquisition of the 30 per cent
stake it does not own in
International Power.
RECENT calendar highlights boost-
ed Greene King as strong sales on
Valentines Day, Mothers Day and
St Patricks Day drove business up
4.5 per cent in the quarter.
The pub operator said it sold
220,000 meals on Mothering
Sunday, a 16 per cent increase on
2011 with wine sales up 18 per cent.
Greene King chief executive
Rooney Anand said that following a
record Christmas the company is
well-placed to benefit from the
Diamond Jubilee, the Euro 2012
and the Olympics later this year.
Like-for-like sales at the Suffolk-
based firm grew 4.6 per cent in the
50 weeks to mid-April, with sales in
London up 6.7 per cent.
Food sales have seen a 6.3 per cent
Mothers Day
boosts takings
at Greene King
BY LAUREN DAVIDSON
rise, boosted by the launch of
Greene Kings new spring menus in
the run up to Easter.
The group said its core ale brand
portfolio ended the 50 week period
up 0.8 per cent, compared to a 4.5
per cent slump in the British ale
market.
ConocoPhillips lags forecasts
as Kelloggs cuts 2012 targets
CONOCOPHILIPS, which is
splitting into two stand-alone
companies at the end of the
month, reported a lower-than-
expected quarterly profit, hurt by
weak refining margins.
Net profit for the first quarter
was $2.9bn, or $2.27 per share,
compared with $3bn, or $2.09 per
share, a year earlier.
Excluding $330m on net special
gains, earnings were $2.02 per
share. That fell short of the
analysts average forecast of $2.08.
Refining and marketing profit
BY HARRY BANKS
fell to $452m from $482m a year
earlier, while the oil and gas
exploration and production arms
earnings, excluding one-time
items, declined to $2.13bn from
$2.2bn.
Oil and gas production totalled
1.64m barrels of oil equivalent per
day in the quarter, down 65,000
from a year earlier, but above the
1.62m it had said earlier this
month that it produced.
Meanwhile, shares in Kelloggs
dropped after the worlds largest
cereal company cut its full-year
outlook following a disappointing
first-quarter performance in
Europe and in some product
categories in the US.
Kelloggs now expects operating
earnings to fall two per cent to
four per cent in 2012, from its
prior forecast of flat or up slightly.
It said sales should rise two per
cent to three per cent, down from
a prior forecast for growth of four
per cent to five per cent.
There was also gloomy news
from toymaker Hasbro, which
reported a fall in sales and weaker-
than-expected quarterly earnings
as North American retailers
struggling with high inventories
put off orders.
PROPERTY developer British Land has sold off five of the Virgin Active racquet sports
clubs it bought last July. The clubs in Gloucester, Neath, Manchester, Oxford and Poole
have been sold to three institutional buyers for a total of 33m, which the company said
represents an average net initial yield of 6.5 per cent.
BRITISH LAND SELLS VIRGIN ACTIVE SITES
Greene King PLC
17Apr 18Apr 19Apr 20Apr 23Apr
505
510
515
520
525
530 p 517.50
23Apr
PHILIPS Electronics reported better-than-expected
quarterly results yesterday, buoyed by one-off gains
and a stronger performance at its consumer and
healthcare businesses, in the first signs of a long-
awaited turnaround under new management.
Philips reported first-quarter net profit jumped
80 per cent to 249m as sales climbed seven per
cent to 5.6bn. But the Dutch group warned that
the outlook for the rest of the year was still
worrying given the weak economic environment.
Philips surprises
with turnaround
BY HARRY BANKS
TUESDAY 24 APRIL 2012
17
NEWS
cityam.com
GLOBAL BUSINESSES
RECRUITING LONDONS
BEST PROFESSIONALS
CITYAMCAREERS.com
WWW.CITYAMCAREERS.COM
OVER
OR SCAN HERE
3000
FINANCE, LEGAL & I.T
SALARIES UP TO
JOBS
300K
GDF Suez benefits from gas as profits jump
BY HARRY BANKS
TRADE union Unite yesterday
resumed talks with fuel tanker
firms aimed at averting a strike.
The firms and union reps took
part in talks at dispute
resolution service Acas yesterday
and are set to do so again today.
Fuel distribution firms last
week granted Unite an extension
to its strike mandate, which is
now due to expire today, in a bid
to reach a deal over working
conditions for their drivers.
Reps for 1,200 drivers have
overwhelmingly rejected an
earlier offer, pointing to work
standards and security as
particular sticking points.
The government has called on
the two sides to make peace and
head off fresh panic buying at
the petrol pumps.
IN BRIEF
MP calls for Tobin explanation
nHigh-profile Conservative MP
Andrew Tyrie yesterday called on the
government to reveal how workable a
global financial transaction tax (FTT)
would be. The European Commission
wants to implement an EU-wide FTT,
but the government opposes it on the
grounds that firms could simply move
to other jurisdictions. Instead, it
claims it would support the tax only if
it was implemented on a global basis.
However, Tyrie, who chairs the
influential Treasury Select Committee,
fears the FTT is good politics, but bad
economics and bad tax policy, and
wants the government to reveal
projections of the impact of a global
tax.
No construction growth for years
nConstruction sector output is expect-
ed to fall by almost three per cent this
year, according to forecasts out yester-
day from the Construction Products
Association. The trade body blames
falling government spending for the
decline, and does not expect the sec-
tors output to rise until stronger pri-
vate sector demand drives growth in
2014. Public sector spending cuts are
now beginning to bite and with the
exception of a steady recovery in the
private housing market, the private
sector is pretty subdued, said the
Associations Michael Ankers.
EU suspends sanctions on Burma
nMost EU sanctions against Burma
were suspended yesterday, thanks to a
shift towards democracy in the country.
The arms embargo will remain in place,
but European companies will be
allowed to invest in Burma, which has
significant natural resources and bor-
ders economic giants China and India.
The EU had frozen the assets of nearly a
thousand companies and institutions,
and banned almost 500 people from
entering the EU.
G
E
T
T
Y
G
E
T
T
Y
BUSINESS lending fell again in
February, official data showed yester-
day, while the level of mortgage
loans is set to plummet after the end
of the stamp duty holiday last
month.
Lending to firms was three per cent
lower in February than in the same
month of 2011, Bank of England fig-
ures revealed, as total corporate debt
fell 4bn in the month to February,
accelerating after falls of 3.4bn in
January and 1.8bn in December.
The fall in lending to small- and
medium-sized enterprises slowed in
the month, with a fall of 3.9 per cent
in the year, compared with 5.2 per
cent in the year to January and 6.1
per cent in the 12 months to
December.
Banks claimed muted demand
from SMEs partly caused the falls.
Conditions on wholesale markets
were reported to have eased in the
first quarter of the year, but the cost
of credit to companies rose nonethe-
less, the Bank reported.
Gross mortgage lending hitting
13.4bn in March, up 30 per cent
from 10.3bn in February and 17 per
cent from 11.4bn in March 2011,
according to the Council of Mortgage
Lending (CML).
The increase in our March lending
estimate appears to be almost entire-
ly due to stronger house purchase
SME borrowing
down again as
demand drops
BY TIM WALLACE
activity the most likely explanation
is that buyers wanted to complete
their transactions before the end of
the stamp duty concession on 24
March, said CMLs Bob Pannell.
We would be surprised if we did
not see a drop in transactions over
the next months, following the end
of the stamp duty concession, espe-
cially as it will take some while for
NewBuy transaction levels to build.
Meanwhile a study from
Moneysupermarket.com showed the
average Briton thinks they will only
be able to afford buy a house once
they hit 37 years old, while the Bank
reported the cost of a mortgage is ris-
ing, with the spread over the base
rate jumping by up to 30 basis points
on some floating-rate products.
More widely, the Bank described the
consumer credit market as sub-
dued, with secured lending up 0.8
per cent in the year and other con-
sumer credit up 2.2 per cent.
Government needs a clearer
strategic plan, says committee
THE GOVERNMENT was accused
this morning of lacking a
coherent strategy to back up
its policies.
The Public Administration
Select Committee (PASC) cites
recent concerns about a
strategic vacuum at the centre
of government and calls for
the publication of a clear long
term strategy in the run up to
each years Budget.
The committee is currently
given six strategic aims by the
government, yet these were
dismissed as too meaningless
to serve any useful purpose by
this mornings report. One of
the aims is to have a free and
democratic society.
Instead, new policies
introduced in each years
Budget should come with
clearer links between long-
term objectives and specific
measures, the PASC says.
Government priorities are too
often shaped by Budget
changes, the report says,
suggesting that changes in tax
and spending should reflect
state policy rather than
determining it.
National strategy must be
informed by a coherent
assessment of the publics
values and aspirations,
commented Conservative MP
Bernard Jenkin, who chairs the
committee.
This is not about abdicating
policy making to opinion polls,
but national strategy must
appreciate what sort of country
the public aspires for the UK to
be, he added.
BY MARION DAKERS
Lending to businesses - BoE data
2004 05 06 07 08 09 10 11 12
-5
-10
-15
0
5
10
15
20
25
30 %
PNFCs
Small
businesses
All SMEs
MANUFACTURING output in
China fell for a second
consecutive month, survey data
showed yesterday, raising fears
the economy will not recover as
sharply as some analysts had
hoped.
Initial estimates of the
manufacturing sectors
purchasing managers index
(PMI), compiled by Markit and
HSBC, rose from 48.3 in March to
49.1 in April.
That is below the no change
level of 50, and so represents
another month of falling output,
though at a slightly slower pace
than in March.
The output index rose from
BY TIM WALLACE
47.3 to 49.1, while new export
orders and employment also
continued to contract, but at a
slower pace than in March.
As April flash PMI ticked
higher, this suggests that the
earlier easing measures have
started to work and hence should
ease concerns of a sharp growth
slowdown, said HSBC economist
Hongbin Qu.
That said, the pace of both
output and demand growth
remains at a low level in an
historical context and the job
market is under pressure.
This calls for additional easing
measures in the coming months.
We expect monetary and fiscal
easing to speed up in the second
quarter.
TUESDAY 24 APRIL 2012
18
NEWS
cityam.com
The Chinese manufacturing sector has suffered from falling foreign demand
Impress your clients, colleagues and friends by choosing quintessentially British
printing manufacturer The Wren Press for all of your business stationery needs.
Bespoke Stationery
For a personal consultation or to place an order,
please call or email us on:
1 Curzon Street, Mayfair, London, W1J 5HD
T: 020 7351 5887
E: info@wrenpress.com
www.wrenpress.com
Factory output keep sliding as
China struggles to find growth
Fuel tanker firms get back
round the table with Unite
Unites Diana Holland has urged drivers
not to panic buy while talks continue
BY JULIAN HARRIS
19
LONDONREPORT
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Wall Street is
in retreat over
euro worries
U
S stocks fell yesterday as
political turmoil in Europe
cast doubts on the
Eurozones ability to push
through measures to end its debt
crisis and as Wal-Mart sank
following a report it stymied a
bribery probe.
The Dow Jones industrial
average was down 102.09 points,
or 0.78 per cent, at 12,927.17. The
Standard & Poors 500 Index was
down 11.59 points, or 0.84 per
cent, at 1,366.94. The Nasdaq
Composite Index was down 30
points, or one per cent, at
2,970.45.
The renewed worries came as
the Eurozones business slump
deepened at a far faster pace than
expected in April. The Markit PMI
fell to a five-month low,
confounding forecasts for a rise.
Europes debt crisis has been a
major headwind for US equities
as investors worried it could hurt
corporate profits. Bank shares
were hit by the concern,
including Morgan Stanley, which
fell 2.9 per cent, while the KBW
bank index fell 0.6 per cent.
Its becoming clear the
Eurozone is in a recession, and
that brings a lot of concerns. To
really get out of the debt
problem, you need growth, and
we havent gotten to that step
yet, said Hank Smith, chief
investment officer at Haverford
Trust.
Wal-Mart Stores slumped 4.7
per cent and was the biggest drag
on the Dow after the New York
Times reported Wal-Mart officials
stymied an internal investigation
into bribery allegations at its
Mexican unit, Walmart de
Mexico.
The sell-off was broad with
almost three stocks on the New
York Stock Exchange falling for
each one that rose, and the
economically sensitive S&P
materials sector was among the
worst performing areas, down 1.4
per cent.
The S&P 500 is still up 8.7 per
cent for the year, some way off its
year-to-date gain of 12.8 per cent
reached earlier this month.
Materials shares followed a fall
in commodity prices as copper
prices dropped 1.6 percent. Shares
in Freeport McMoran Copper &
Gold fell 1.1 per cent.
Shares of Apple, which is due
to report results today after the
bell, briefly fell below their 50-
day moving average for the first
time in four months. Shares
closed down 0.2 per cent at
$571.70.
Kellogg Co shares dropped 6.1
per cent after the cereal maker
cut its full-year profit view.
Fellow Nasdaq component
Hasbro slipped 5.2 per cent on a
similarly downbeat set of results,
with toy sales slumping and
profits falling short of forecasts.
B
RITAINS top shares surrendered
almost all of last weeks gains
yesterday, led lower by commodity
stocks and banks, as political
uncertainty and disappointing
economic data revived investor concerns
over the Eurozone debt situation.
The mood was darkened by data
showing the Eurozones business slump
deepened at a far faster pace than
expected in April, suggesting the
economy will stay in recession at least
until the second half of the year.
The Eurozones commitment to
reform may also be in doubt after Dutch
Prime Minister Mark Ruttes
government collapsed in a crisis over
budget cuts, while Socialist leader
Francois Hollande, who has vowed to
seek changes to a new EU fiscal treaty,
won the first round of Frances
presidential election.
Some analysts said a defeat for
incumbent Nicolas Sarkozy in the 6 May
second round could weaken cooperation
between France and Germany in dealing
with the debt crisis.
The prognosis for equity markets is
they have to accept that under the
current situation were not going to be
able to magic-wand this and see it
finished in a few weeks, said Paul
Kavanagh, a partner at Killik & Co.
My fear at the moment is that
[investors] appear to be panicking
because the outcomes are getting more
uncertain as we get further into this
crisis not less uncertain.
The FTSE 100 index closed 106.58
points, or 1.9 per cent, lower at 5,665.57,
its lowest close since 13 April, having
ended up 0.5 per cent on Friday to
record a 2.1 per cent advance on the
week.
It looks like were in a near-term
corrective downtrend, Phil Roberts,
chief European technical strategist at
Barclays Capital, said, highlighting that
the index failed last week to retrace
more than 50 per cent of the sell-off
from its March high to this month's low.
He reckoned the 200-day moving
average, at 5,568, could be revisited.
Broadcaster BSkyB was one of only
two gainers, ahead 0.7 per cent, aided by
its ongoing share buy-back programme,
and ahead of third-quarter results due
on 2 May. Trading volume in BSkyB was
robust, at one and a half times its 90-day
daily average.
Commodity stocks were the biggest
drag on the UK blue-chip index, as
copper prices and crude dropped after
mixed factory activity data from China
alongside the concerns surrounding the
Eurozone.
Chinas factories posted their best
performance this year as a measure of
new business rose from multi-month
lows in April, with the HSBC flash PMI at
49.1 vs final March reading of 48.3, but
overall activity still contracted for a sixth
successive month.
Banks also came under heavy pressure
on worries about their exposure to the
euro area debt crisis ahead of the
sector's first-quarter results season.
Barclays, the first of the British banks
to report, was the worst off, down 4.2
per cent, ahead of its results on
Thursday.
International Consolidated Airlines
Group shed 5.4 per cent, the second-top
FTSE 100 loser, as investors eyed
integration issues after the owner of
British Airways and Iberia completed its
acquisition of Lufthansas UK airline,
BMI, on Friday.
IAGs chief executive Willie Walsh said
the company was in talks with potential
buyers for the two subsidiaries but that
a sale was far from certain.
FTSE slumps as fresh fears over the
Eurozone return to global markets
BESTof theBROKERS
Heritage Oil PLC
17Apr 18Apr 19Apr 20Apr 23Apr
p
148
146
144
142
140
138
136
140.80
23 Apr
HERITAGE OIL
UBS has upgraded the oil and gas group from neutral to buy and
maintained its target price on the stock at 190p following recent
weakness in the shares. The brokers says that the 22 per cent fall in the
share price since the start of the year is unjustified given the
companys unchanged fundamentals, and sees the low price as a good
buying opportunity as drilling prospects and new ventures particularly
in Malta and Nigeria should provide a range of catalysts.
British American Tobacco PLC
17Apr 18Apr 19Apr 20Apr 23Apr
p
3,260
3,240
3,220
3,200
3,180
3,160
3,140
3,213.50
23 Apr
BRITISH AMERICAN TOBACCO
Credit Suisse has maintained its outperform rating on the stock and
upped its target price to 3,400p from 3,250p following the recent re-
rating of its peer Philip Morris International and strong stock
performance by associate ITC. The broker expects BAT to have
outperformed its competitors in Russia and Europe.
Banco Santander SA
17Apr 18Apr 19Apr 20Apr 23Apr

5.10
5.00
4.90
4.80
4.70
4.60
4.68
23 Apr
SANTANDER
JP Morgan Cazenove has upgraded the bank to overweight from neutral
with a target price of 4.76 and called it the preferred stock in peripheral
Europe, saying that fears are overdone on the back of sovereign worries. The
broker says Santander should benefit most from a reopening of the credit
markets and easing funding costs, and that even with deep recessions in
both Spain and turmoil across Latin America the shares still have value, and
are attractive in the long term. It also expects the bank to increase its
provisions against real estate closer to its 55 per cent expected loss.
FTSE
18Apr 19Apr 20Apr 23Apr 17Apr
5,700
5,725
5,750
5,800
5,665.57
23 Apr
5,775
5,675
5,650
DASHBOARD CITY
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
cityam.com
TUESDAY 24 APRIL 2012
Northill Capital
The asset manager, founded in
2010, has announced the
appointments of Darius Berendji
and Cathy Jones as partners in its
management team. Berendji
joins as partner and chief
financial officer. He was
previously financial director for
Kedge Capital. Jones joins as
partner and head of human
resources. She previously held the same role at BNY Mellon.
Miller Group
Philip Bowman has been made chairman of the property
development, construction and mining business. He
succeeds Sir Brian Stewart, who joined in 2008. Bowman is
currently chief executive of Smiths Company, a technology
firm, and formerly held the same role at Scottish Power. He
is also senior independent director of Burberry.
Reed Smith
The law firm has announced the appointments of Peter
Zaman and Nick Rock to its partnership. Zaman joins from
Clifford Chance, where he was head of its environmental
and climate trading group. Rock is also a practitioner in
environmental law and joins from Dewey LeBeouf.
Simmons & Simmons
David Williams has been made partner in the law firms
financial services team. He joins from DLA Piper, where he
held the position of head of investment funds in the UK.
Williamss specialism is in investment funds and asset
management work, particularly funds investing in private
equity, illiquid credit, real estate and infrastructure.
Alvarez & Marsal
The independent professional services firm has appointed
Matthew Hill as managing director and head of its European
real estate advisory services business. Prior to joining the
company, Hill led the European real estate practice at
AlixPartners. He has also previously worked at King Sturge
and Arthur Andersen.
Cushman & Wakefield
The commercial real estate services firm has appointed
Sharon French as partner in the property and asset
management team of its London markets group. French
joins on 30 April. She has spent the majority of her career
with CBRE, where she led the central London team. She will
report to Polly Plunket-Checkemian.
Mayer Brown
The law firm has announced that Robert Klotz has been
made a partner in its anti-trust and competition practice.
Klotz joins from Hunton & William, where he held the
position of partner for the last five years. He was previously
also an official of the European Commissions Directorate
General for Competition, where he was involved in anti-
trust cases in the energy and telecommunications sectors.
WHOS SWITCHING JOBS Edited by Tom Welsh CITY MOVES
in association with
C
ASINOS are a triumph of
human achievement a
beacon of what financial
markets hope to accomplish.
No, Im not being facetious.
Consider the distinction the
economist Frank Knight made
between risk and uncertainty. Risk is
calculable because the range of
possible outcomes is known. In
roulette, for example, a ball is
released into a spinning wheel that
contains 38 slots. The probability of
correctly guessing is 1/38, and
casinos will pay out odds of 35 to 1
(the difference constitutes the house
advantage). Uncertainty is everything
else. It is the range of possible
outcomes that cannot be reduced to
calculable risk. For roulette, if an
I
TALIAN Prime Minister Mario
Monti recently proclaimed
historic labour reform and even
declared the financial aspect of
the crisis to be over. But dont pop
the Prosecco yet. Italys biggest
impediments to business rigid
labour rules and uncertain contract
enforcement are alive and well.
Montis upbeat attitude should be
tempered by Italys ongoing economic
stagnation. Total production in Italy
still hasnt recovered to its 2007 peak,
while the unemployment rate 9.3 per
cent in February continues to rise.
On ease of doing business, the World
Bank ranks Italy at 30 out of the 31
OECD high-income countries. It is only
beaten to worst place by Greece.
This springs labour reform battle
was a lost opportunity at turning that
situation around. The government and
party leaders came to a fragile agree-
ment with Italys largest unions.
Businesses would be allowed to lay off
workers for economic reasons, mean-
ing financial distress, while paying up
to an exorbitant 24 months of sever-
ance. But firms still would not be
CITYJET.COM
EXCLUSIVE SERVICEDIRECT FROMLONDONCITY AIRPORT. FAREIS ONEWAY ECONOMY & INCLUDESTAXES & CHARGES. SUBJECT TOAVAILABILITY & TERMS& CONDI TIONS.
Paris
FROM 83
cityam.com/forum
Italy ranks dead last
among OECD countries
in efficiency of contract
enforcement
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

20
TUESDAY 24 APRIL 2012
MATTHEW MELCHIORRE
Super Mario talks a good game but
Italys entrepreneurs have lost out
allowed to fire employees for incompe-
tence.
The centerpiece of Italys rigid labour
market, and the main issue of con-
tention, is Article 18 of the Workers
Statute. Under it, poor performance
is not grounds for employee dismissal.
Only concrete and wanton negli-
gence justifies that. If a labour court
finds a business guilty of firing an
incompetent employee, the firm must
rehire the worker and compensate for
lost pay. If an entrepreneur has fewer
than 15 employees, he faces a choice
between rehiring or paying up to 14
months of severance. Article 18 pro-
tects 87 per cent of private sector work-
ers, according to numbers from
Datagiovani a statistical agency that
studies Italian youth.
Then theres Italys two-tier labour
market, an unintended consequence
of Article 18. The law shields older
workers, who already have regular
contracts, from the competition of
new job seekers: the young. Because
they are shut out from regular employ-
ment, 17 per cent of employed Italians
under 35, more than any other age
group, work on short-term contracts
exempt from protection. The rest not
on protected contracts remain unem-
ployed. Italys youth unemployment
averaged 5.8 percent above the EU
average from 2001 to 2010.
Recent reform makes it even less
attractive to hire the young because
social and retirement contributions
for short-term contracts would
increase. Young qualified Italians just
cannot find jobs, because businesses
wont take the risk of hiring an
employee for life.
Entrepreneurs are afraid to grow.
Within the EU, Italy boasts the highest
proportion of employment in both
micro-firms businesses with fewer
than 10 employees and micro and
small firms combined. It also faces the
lowest proportion of employment in
medium-sized enterprises.
Compounding the problem of an
inflexible labour market is a slow legal
system not known for its impartiality.
On average, it takes almost 3.5 years to
adjudicate a lawsuit, according to the
World Bank. Italy ranks dead last
among OECD countries in efficiency
of contract enforcement.
Making matters worse, entrepre-
neurs dont find much sympathy in
Italian courts. Economist Andrea
Ichino of the Center for European
Policy Research found that every per-
centage point increase in regional
unemployment correlates with a 2.5
per cent reduction in an employers
chance of winning employee dismissal
cases in that region.
Fiat, Italys iconic car manufacturer,
has already moved production to
Poland and is threatening to shift
more to Eastern Europe and North
America. While allaying fears recently
that Fiat would leave Italy entirely,
chief executive Sergio Marchionne did-
nt hesitate to criticise Italys impossi-
ble regulatory environment: The
rules that were thought to defend jobs
have brought us to a situation in
which the hardest thing is to create
jobs.
Rigid labour markets and a broken
court system make doing business in
Italy a gruelling ordeal. Recent
reforms merely placate intransigent
unions and cowardly party leaders.
Super Mario should not be surprised
when financial chaos returns as mar-
kets lose confidence in Italian prosper-
ity once again.
Matthew Melchiorre is an adjunct analyst
at the Competitive Enterprise Institute. He
lives in Bologna, Italy.
Elvis impersonator jumped onto the
table and stole the ball this might
constitute an uncertain event. By
definition it cannot be included in
the payoffs, because there is no
known distribution.
Both Austrian and Keynesian
economists share this
risk/uncertainty distinction, and
while some cynical commentators
like to suggest similarities between
casinos and financial markets, this
provides a neat way to understand
the real difference between the two
casinos are temples to precisely-
calculated and managed risk;
financial markets exist to convert
uncertainty into risk.
Casinos can also provide insight
into just how hard that is. Ive just
returned from the 2012 Association
of Private Enterprise Education
conference, held in Las Vegas, where
I set out to spend a few hundred
dollars playing blackjack.
On my way to the table, I stopped
off at the roulette wheel and put $10
on the number 24. It came in,
winning me $350. The problem I
then faced was how this win affected
my plans to gamble further.
The main issue when gambling is
retaining self-control. My strategy is
to take out the maximum I am
willing to lose in cash, and leave my
credit card in my room. My problem
was that now I had $550 in my
pocket, and felt euphoric, so I took a
moment to collect my thoughts.
One option was to reinvest all of
the winnings, and enjoy the
potential of even greater profits. But
if you never cash out you are
guaranteed to lose.
The second option was to split my
money in two, and revise my original
decision about how much to stake. I
wanted to guarantee a financial
profit, so I could try to ignore the
$350 win and only bet with the
money I was originally willing to
gamble. But the problem with this is
that it wasnt time consistent. I could
have gone to the blackjack table
intending to spend $200, but what
would my future self do in a few
hours time? I would almost certainly
dip into the rest of the profits.
Without a way to credibly commit
to staking a fraction of the profit, I
could only see two choices: walk
away, or lose it all. So I cashed in the
chips, went to my room and wrote
this column, with fresh respect for
everyone who works to turn
uncertainty into risk for a living.
Anthony J. Evans is associate professor
of economics at Londons ESCP Europe
Business School:
anthonyjevans@gmail.com
FRONTLINE
ECONOMICS
ANTHONY J. EVANS
Financial markets arent like casinos but they aspire to their condition
Pau
FROM 73
Deauville
FROM 83
21
Monetary wisdom
[Re: Luck-based pay makes decision
making a lottery, Wednesday]
Jamie Whyte's analysis is simplified to the
point of being meaningless. If a corporate
banker only makes one loan and bases his
analysis purely on a credit rating, I would
question the wisdom of paying such a
banker anything other than a basic wage.
The logical conclusion in his scenario is that
all reward should go to the supplier of the
capital, the person bearing the risk, as the
task requires no skill. A middle way is
appropriate and this involves regulation. In
his analysis, surely this would be justified.
His description is of bankers comparable to
children who would steal money for sweets
with no consideration of the consequences.
JohnDiamond
Regulating stasis
[Re: Scientific progress and emerging
markets give us hope, Friday]
I have seen, over the past two decades,
fantastic science developed by small
medical research groups which is then
snapped up by companies with large cash
reserves. The technology disappears from
public view and may or may not reappear,
after an extensive clinical and regulatory
approval process. Technology is hardly ever
sold on to competitors. If the technology
does make it to market, it will face tough
scrutiny by UK NHS approval authorities. It
is not uncommon for great science to be
invented on UK soil, make it to US, Canadian
and South African markets, and never gain
approval in the UK. It is a cost issue.
Michael Fourier
T
HE decision to withdraw
VAT relief from approved
alterations to listed
buildings may not just
change the face of Britain by
sounding the death knell for
hundreds of cherished buildings,
but also damage local economies
and community services.
Listed buildings only three per
cent of all buildings are protected
as the best surviving examples of
our rich architectural tapestry.
Theyre valuable for the unique
beauty they bring to streetscapes,
and their economic contribution is
significant. Every pound invested
in the historic environment
directly contributes, on average, an
additional 1.60 to the economy
over ten years. Local construction
firms and architects often rely on
heritage building projects to
support their businesses. The
tourism sector, driven by our
heritage, is Britains third largest
export earner, worth around
115bn a year and supports around
2.6m jobs. With such an obvious
connection between the historic
environment, local communities
and economic prosperity, it is
puzzling that the government has
failed to make the connection
between the maintenance of the
historic environment and its own
growth and civil society policies.
Rather than curtailing an
anomaly that allows wealthy
owners to avoid tax on alterations
to their listed homes, this tax will
hit the greater majority of modest
owners and community groups,
working hard to reuse listed
buildings. An estimated 35,000 to
50,000 listed buildings are owned
by businesses or charities. With
many unable to reclaim the VAT
incurred in making alterations, the
heritage tax will add an extra 20
TOP TWEETS
Credit to @cityamonline for describing
Marine Le Pen as an extreme nationalist
rather than a creature of the right.
@isaby
Sarko socialist, Hollande far-left, Le Pen
extreme right. Is there any real pro business
party in France?
@TheBigFishh
Fascinating French election a Hollande win
has huge connotations for the Eurozone.
@TheTopQuark
Interesting that Livingstone has normally
bucked the anti-Labour trend, but is now
struggling more than the national party.
@tonygee
Do the first results of Frances presidential
election represent a threat to the Eurozone?
YES
Almost one third of votes went to candidates who are explicitly anti-
euro (Marine Le Pen), or anti-austerity and protectionist (Jean-Luc
Mlenchon). Irrespective of the outcome of the second round, itll be
hard for the next President to convince France to follow a German
vision of the Eurozone sound money and strict supranational
budget rules. A victory for Franois Hollande could complicate
Frances relationship with Berlin, notably over the fiscal pact, which
he questions, or the role of the ECB, which he wants to print money.
This would undermine the entire German approach to the crisis
(German money in return for Prussian budget discipline). While the
Franco-German axis remains strong, this will add even more political
uncertainty to the Eurozone crisis. A back-pedalling France would
make it more difficult for Angela Merkel to get political cover for
putting German money on the line. Markets may grow more anxious.
Vincenzo Scarpetta is a researcher at Open Europe.
Vincenzo Scarpetta
NO
Emma Reynolds
A victory by Francois Hollande would fundamentally change the
terms of the debate in Europe. Europe has been dominated by the
centre-right and its exclusive focus on austerity. The greater threat
to the Eurozone and the British economy would come through
maintaining the status quo. As Standard and Poors has recently
emphasised, austerity alone is self-defeating. Europes centre-right
governments have dragged their feet in tackling the Eurozone crisis.
They have spectacularly mismanaged the situation by imposing
crippling austerity on the weakest economies and failing to address
the unemployment crisis facing one in ten people. Hollande doesnt
want to rip up the fiscal compact but recalibrate it to include a
commitment to jobs and growth. Far from being a threat, this is the
resuscitation the Eurozone desperately needs.
Emma Reynolds is shadow Europe minister and Labour MP for
Wolverhampton North East.
RAPIDresponses
A tax on heritage
attacks the heart
of local business
per cent to the cost of keeping
these buildings going.
This extra burden will likely lead
to the mothballing of many
building projects. A typical
community project at risk is a
town hall renovation in the
Shropshire market town of
Bishops Castle. Project manager
Sam Hine warns, Weve already
been seeking to raise tens of
thousands through local
fundraising and donations. To now
go back for twenty per cent more is
demoralising and will put our
project in jeopardy.
It will be cheaper to demolish a
listed building and rebuild anew
(at 0 per cent VAT), than renovate
the existing building at 20 per cent
VAT. This runs contrary to so many
government initiatives, from the
Big Society to the Asset Transfer
agenda. If government is serious
about supporting economic
growth and cutting carbon it
should focus on measures to
encourage people to reuse existing
buildings. With this ill-considered
proposal, a golden opportunity to
rationalise VAT in a way that would
have benefitted jobs, the economy
and the environment has been
missed. We are left with a regime
that penalises sympathetic, low-
carbon, often community-led
building projects. I hope
government will reconsider this
tax on our heritage.
Loyd Grossman is chairman of The
Heritage Alliance.
TUESDAY 24 APRIL 2012
LOYD GROSSMAN
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
Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor & Head of News David Crow
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
4th Floor, 33 Queen Street,
London, EC4R 1BR
Tel: 020 3201 8900
Fax: 020 7248 2711
Email: news@cityam.com
Editorial Statement: This newspaper adheres to the systemof self-regulation overseen by the Press Complaints Commission. The PCCtakes complaints about the editorial content of publications under the Editors Code of Practice, a copy of which can be foundat www.pcc.org.uk
The Forum is open for you to take part. Got a sharp comment
on one of todays columns? Do you have another subject you
want to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
TUESDAY 24 APRIL 2012
22
MARKETS
cityam.com
LON GD ONCE FIX AM .................................1640.00 -2.00
SILVERLDN FIX AM..........................................31.62 -0.24
MAPLE LEAF 1 OZ .............................................33.13 1.05
LON PLATINUM AM ......................................1577.00 -15.00
LON PALLADIUM AM....................................660.00 -1.00
ALUMINIUM CASH......................................2034.00 18.00
COPPER CASH.............................................8120.00 36.50
LEAD CASH................................................2099.00 75.00
NICKEL CASH.............................................17740.00 140.00
TIN CASH..................................................21250.00 195.00
ZINC CASH..................................................1999.00 14.50
BRENT SPOT INDEX........................................118.69 0.93
SOYA...........................................................1446.75 31.00
COCOA........................................................2299.00 41.00
COFFEE...........................................................177.70 4.05
KRUG...........................................................1697.80 -11.20
WHEAT ..........................................................175.25 -1.02
AIR LIQUIDE......................................................94.55 -3.53 102.30 80.90
ALLIANZ............................................................82.28 -2.38 107.45 56.16
ANHEUS-BUSCHINBEV....................................54.46 -0.74 56.80 33.85
ARCELORMITTAL ................................................12.25 -0.69 25.40 10.47
AXA....................................................................10.18 -0.52 15.94 7.88
BANCO SANTANDER...........................................4.68 -0.07 7.96 4.57
BASF SE............................................................63.67 -2.53 70.22 42.19
BAYER................................................................51.37 -2.36 59.44 35.36
BBVA..................................................................5.00 -0.10 8.44 4.84
BMW................................................................67.00 -2.84 73.95 43.49
BNP PARIBAS...................................................28.40 -1.21 55.20 22.72
CARREFOUR ......................................................14.58 -0.64 28.19 14.53
CRH PLC ............................................................14.66 -0.49 16.93 10.28
DAIMLER...........................................................39.50 -1.73 53.95 29.02
DANONE.............................................................53.13 0.70 54.81 41.92
DEUTSCHE BANK...............................................32.98 -1.50 44.56 20.79
DEUTSCHE BOERSE ...........................................45.75 -1.84 57.68 35.65
DEUTSCHE TELEKOM...........................................8.42 -0.13 11.38 7.88
E.ON..................................................................16.62 -0.49 23.54 12.50
ENEL ...................................................................2.43 -0.06 4.86 2.39
ENI ....................................................................16.05 -0.47 18.72 11.83
FRANCE TELECOM...............................................9.86 -0.20 15.96 9.86
GDF SUEZ...........................................................18.19 -0.50 28.00 17.65
GENERALI ASS. .................................................10.00 -0.28 16.38 9.88
IBERDROLA.........................................................3.49 -0.10 5.94 3.45
INDITEX ............................................................68.25 -1.45 74.73 52.20
ING GROEP CVA ..................................................5.23 -0.34 9.07 4.21
INTESA SANPAOLO ..............................................1.07 -0.07 2.13 0.85
KON.PHILIPS ELECTR .........................................14.82 0.48 20.75 12.01
L'OREAL............................................................89.62 -2.30 94.80 68.83
LVMH...............................................................119.80 -3.60 136.80 94.16
MUNICHRE.......................................................111.80 -3.60 118.35 77.80
NOKIA .................................................................2.71 -0.08 6.36 2.70
REPSOL YPF.......................................................14.03 -0.89 24.45 13.95
RWE..................................................................32.61 -1.37 46.09 21.15
SAINT-GOBAIN..................................................29.75 -0.76 47.64 26.07
SANOFI..............................................................55.57 -1.10 59.56 42.85
SAP..................................................................48.69 -0.96 54.85 32.88
SCHNEIDER ELECTRIC ........................................45.10 -2.29 60.63 35.00
SIEMENS...........................................................68.90 -1.78 99.07 62.13
SOCIETE GENERALE ...........................................16.63 -0.68 46.60 14.32
TELECOM ITALIA...................................................0.81 -0.01 1.03 0.70
TELEFONICA.......................................................10.76 -0.31 18.34 10.70
TOTAL................................................................35.56 -0.89 43.61 29.40
UNIBAIL-RODAMCO SE....................................139.00 -4.25 162.95 123.30
UNICREDIT..........................................................2.80 -0.19 11.57 2.20
UNILEVER CVA...................................................25.51 -0.27 27.16 20.96
VINCI.................................................................32.39 -1.44 45.48 28.46
VIVENDI ............................................................12.64 -0.26 21.37 12.42
VOLKSWAGEN VORZ.........................................121.25 -4.15 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5665.57 -106.58 -1.85
FTSE 250 INDEX. . . . . . . . . . . . . . . . 11181.62 -263.23 -2.30
FTSE UK ALL SHARE. . . . . . . . . . . . 2944.06 -56.62 -1.89
FTSE AIMALL SH. . . . . . . . . . . . . . . . 772.36 -8.25 -1.06
DOWJONES INDUS 30 . . . . . . . . . . 12927.17 -102.09 -0.78
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1366.94 -11.59 -0.84
NASDAQ COMPOSITE . . . . . . . . . . . 2970.45 -30.00 -1.00
FTSEUROFIRST 300 . . . . . . . . . . . . . 1021.76 -24.32 -2.32
NIKKEI 225. . . . . . . . . . . . . . . . . . . . 9542.17 -19.19 -0.20
DAX 30 PERFORMANCE . . . . . . . . . 6523.00 -227.12 -3.36
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3098.37 -90.21 -2.83
SHANGHAI SE INDEX . . . . . . . . . . . 2388.59 -18.28 -0.76
HANG SENG . . . . . . . . . . . . . . . . . 20624.39 -386.25 -1.84
S&P/ASX 20 INDEX. . . . . . . . . . . . . 2596.60 -6.30 -0.24
ASX ALL ORDINARIES. . . . . . . . . . . 4430.30 -14.10 -0.32
BOVESPA SAO PAOLO. . . . . . . . . . . 61539.38 -954.70 -1.53
ISEQ OVERALL INDEX. . . . . . . . . . . . 3162.44 -70.20 -2.17
STRAITS TIMES . . . . . . . . . . . . . . . . 2994.48 -13.73 -0.46
IGBM . . . . . . . . . . . . . . . . . . . . . . . . . 710.59 13.51 1.94
SWISS MARKET INDEX . . . . . . . . . . . 6114.83 -122.96 -1.97
Price Chg %chg
3M......................................................................87.13 -0.35 98.19 68.63
ABBOTT LABS ...................................................59.87 -0.01 62.57 46.29
ALCOA................................................................9.63 -0.07 17.96 8.45
ALTRIA GROUP..................................................31.76 -0.13 32.10 23.20
AM INTL GRP....................................................32.09 0.03 33.45 19.18
AMAZON.COM .................................................188.24 -1.74 246.71 166.97
AMERICAN EXPRESS..........................................57.32 -0.13 59.26 41.30
APPLE .............................................................571.70 -1.28 644.00 310.50
AT&T..................................................................30.61 -0.25 31.97 27.29
BANK OF AMERICA..............................................8.18 -0.18 12.71 4.92
BERKSHIRE HATAW B.......................................78.80 -0.10 83.72 65.35
BOEING CO .......................................................72.86 -0.69 80.65 56.01
CATERPILLAR..................................................106.90 -0.83 116.95 67.54
CHEVRON........................................................102.44 -0.08 112.28 86.68
CISCO SYSTEMS.................................................19.68 -0.23 21.30 13.30
CITIGROUP........................................................33.25 -0.64 46.00 21.40
COCA-COLA.......................................................73.69 -0.44 74.48 63.34
COMCAST CLASS A............................................29.04 -0.41 30.41 19.19
CONOCOPHILLIPS..............................................72.33 -0.55 81.50 58.65
DU PONT(EI) DE NMR........................................51.82 -0.80 57.50 37.10
EXXON MOBIL...................................................85.69 0.39 88.13 63.47
GENERAL ELECTRIC............................................19.07 -0.29 21.00 14.02
GOOGLE A.......................................................597.60 1.54 670.25 473.02
HEWLETT PACKARD..........................................24.27 -0.24 41.74 19.92
HOME DEPOT .....................................................51.10 -0.36 52.15 28.13
IBM.................................................................198.62 -0.98 210.69 157.13
INTEL CORP.......................................................27.45 -0.15 28.78 19.16
J.P.MORGAN CHASE..........................................42.85 0.13 46.49 27.85
JOHNSON & JOHNSON......................................63.37 -0.34 68.05 55.76
KRAFT FOODS A................................................37.99 -0.55 39.40 24.30
MC DONALD'S CORP..........................................95.19 -0.75 102.22 76.50
MERCK AND CO. NEW.......................................38.27 -0.46 39.43 29.47
MICROSOFT........................................................32.12 -0.30 32.95 23.65
OCCID. PETROLEUM...........................................87.92 -0.69 117.89 66.36
ORACLE CORP...................................................28.48 -0.40 36.50 24.72
PEPSICO............................................................66.18 -0.45 71.89 58.50
PFIZER..............................................................22.38 -0.18 22.80 16.63
PHILIP MORRIS INTL.........................................86.94 -0.87 90.10 60.45
PROCTER AND GAMBLE....................................66.65 -0.86 67.95 56.57
QUALCOMM INC.................................................61.56 -0.69 68.87 45.98
SCHLUMBERGER ................................................71.19 -0.51 95.53 54.79
TRAVELERS CIES................................................62.91 0.16 64.17 45.97
UNITED TECHNOLOGIE ......................................79.75 -1.25 91.83 66.87
UNITEDHEALTH GROUP.....................................59.19 -0.32 59.71 41.27
US BANCORP DELAWRE.....................................31.21 -0.08 32.23 20.10
VERIZON COMMS ..............................................38.57 -0.16 40.48 32.28
VISA CL A .........................................................118.10 -2.91 123.68 73.11
WAL-MART STORES..........................................59.54 -2.91 62.63 48.31
WALT DISNEY CO...............................................42.01 -0.34 44.50 28.19
WELLS FARGO & CO..........................................32.69 -0.31 34.59 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight.........................................0.500 0.00
BoE IR 7 days..............................................0.500 0.00
BoE IR 1 month...........................................0.500 0.00
BoE IR 3 months.........................................0.500 0.00
BoE IR 6 months ........................................0.500 0.00
LIBOR Euro - overnight................................0.257 0.00
LIBOR Euro - 12 months................................1.330 0.00
LIBOR USD - overnight.................................0.148 0.00
LIBOR USD - 12 months ................................1.047 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate.............................................1.500 0.00
Finance house base rate..............................1.500 0.00
US Fed funds ...............................................0.250 0.00
US long bond yield.......................................3.130 -0.01
European repo rate ......................................0.157 0.00
Euro Euribor .................................................0.319 0.00
The vix index................................................19.35 -1.91
The baltic dry index ...................................1067.0 39.00
Markit iBoxx................................................241.87 0.80
Markit iTraxx................................................143.14 -0.95
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .293.1 -4.9 340.8 248.1
Chemring Group . . . . . .362.9 -15.6 677.0 346.2
Cobham . . . . . . . . . . . .236.9 -5.9 239.5 165.9
Meggitt . . . . . . . . . . . . . .407.1 -7.1 412.0 304.9
QinetiQ Group . . . . . . . .152.8 -4.6 159.3 101.5
Rolls-Royce Holdi . . . . .832.0 -16.5 844.0 557.5
Senior . . . . . . . . . . . . . .202.0 -1.6 204.8 135.6
Ultra Electronics . . . . . .1681.0 -41.0 1780.0 1305.0
GKN . . . . . . . . . . . . . . . .208.7 -6.7 245.0 157.0
Barclays . . . . . . . . . . . . .213.6 -9.0 301.9 138.9
HSBC Holdings . . . . . . .555.8 -10.1 662.5 463.5
Lloyds Banking Gr . . . . . .30.1 -0.7 60.4 21.8
Royal Bank of Sco . . . . . .24.0 -0.9 42.9 17.3
Standard Chartere . . . .1534.5 -33.0 1672.0 1169.5
AG Barr . . . . . . . . . . . . .1180.0 1.0 1395.0 1031.0
Britvic . . . . . . . . . . . . . .393.4 -9.0 444.0 289.9
Diageo . . . . . . . . . . . . .1582.0 -25.0 1589.0 1112.0
SABMiller . . . . . . . . . . .2613.0 -22.5 2660.0 1979.0
AZ Electronic Mat . . . . . .312.8 -5.3 338.1 206.1
Croda Internation . . . .2274.0 -50.0 2274.0 1597.0
Elementis . . . . . . . . . . .204.9 -6.8 206.0 107.5
Johnson Matthey . . . .2370.0 -95.0 2408.0 1523.0
Victrex . . . . . . . . . . . . .1516.0 -55.0 1590.0 1025.0
Yule Catto & Co . . . . . . .238.4 -6.0 253.0 148.0
/$ 1.3135 0.0085
/ 0.8152 0.0048
/ 106.49 1.2619
/ 1.2266 0.0071
/$ 1.6114 0.0009
/ 130.65 0.7756
FTSE 100
5665.57
106.58
FTSE 250
11181.62
263.23
FTSE ALL SHARE
2944.06
56.62
DOW
12927.17
102.09
NASDAQ
2970.45
30.00
S&P500
1366.94
11.59
Brown (N.) Group . . . . .231.3 -6.3 304.5 222.4
Carpetright . . . . . . . . . .605.0 2.0 741.0 375.0
Debenhams . . . . . . . . . . .81.1 -1.2 82.7 51.2
Dignity . . . . . . . . . . . . .860.0 -22.5 860.0 727.0
Dixons Retail . . . . . . . . . .17.8 -0.7 19.9 9.4
DunelmGroup . . . . . . .505.0 -19.8 533.0 389.0
Halfords Group . . . . . . .285.5 -13.8 405.9 268.6
Home Retail Group . . . .103.5 -3.5 228.5 72.5
Inchcape . . . . . . . . . . . .357.9 -14.7 425.4 268.1
JD Sports Fashion . . . . .808.0 -21.5 1030.0 570.0
Kesa Electricals . . . . . . . .55.1 -2.3 151.4 52.4
Kingsher . . . . . . . . . . .304.0 -9.9 313.8 217.0
Marks & Spencer G . . . .362.6 -6.1 402.2 301.8
Next . . . . . . . . . . . . . . .3032.0 -33.0 3060.0 2153.0
Sports Direct Int . . . . . .280.9 -1.1 296.1 190.0
WHSmith . . . . . . . . . . .542.0 -9.0 559.0 451.6
Smith & Nephew . . . . . .612.5 -11.5 694.0 521.0
Synergy Health . . . . . .840.0 -16.0 981.0 809.5
Barratt Developme . . . .130.8 -6.1 151.5 67.5
Bellway . . . . . . . . . . . . .784.5 -33.0 859.5 540.5
Berkeley Group Ho . . .1259.0 -42.0 1414.0 1025.0
Bovis Homes Group . . .468.9 -10.4 518.5 326.5
Persimmon . . . . . . . . . .641.0 -23.0 706.5 374.0
Balfour Beatty . . . . . . .268.6 -8.5 333.7 214.6
CRH . . . . . . . . . . . . . . .1246.0 -47.0 1665.5 1053.0
Galliford Try . . . . . . . . .625.0 -19.5 630.0 383.8
Kier Group . . . . . . . . . . .1151.0 -31.0 1489.0 1095.0
Drax Group . . . . . . . . . .526.5 5.5 581.5 430.4
SSE . . . . . . . . . . . . . . . .1342.0 -13.0 1423.0 1193.0
Domino Printing S . . . .610.0 -16.0 701.5 434.3
Halma . . . . . . . . . . . . . .406.5 -10.5 429.6 306.3
Laird . . . . . . . . . . . . . . . .216.1 -9.1 222.0 128.5
Morgan Crucible C . . . . .328.9 -16.2 360.0 224.0
Oxford Instrument . . .1285.0 -45.0 1285.0 714.0
Renishaw . . . . . . . . . .1454.0 -54.0 1886.0 800.0
Spectris . . . . . . . . . . . .1840.0 -54.0 1857.0 1039.0
Aberforth Smaller . . . .634.0 -13.5 714.0 494.0
Alliance Trust . . . . . . . . .367.9 -8.5 392.7 310.2
Bankers Inv Trust . . . . .420.0 -5.4 433.8 346.5
BH Global Ltd. GB . . . . .1179.0 -2.0 1212.0 1077.0
BH Global Ltd. US . . . . . . .11.6 -0.1 12.2 10.6
BH Macro Ltd. EUR . . . . . .19.3 -0.0 20.2 16.5
BH Macro Ltd. GBP . . . .2031.0 13.0 2078.0 1692.0
BH Macro Ltd. USD . . . . . .19.2 -0.2 20.2 16.4
BlackRock World M . . . .674.0 -26.0 805.0 574.5
BlueCrest AllBlue . . . . . .161.4 -0.1 176.2 160.6
British Assets Tr . . . . . . .126.3 -2.0 139.4 109.0
British Empire Se . . . . .416.0 -6.8 533.0 402.0
Caledonia Investm . . .1418.0 -14.0 1800.0 1337.0
City of London In . . . . .294.3 -2.3 306.9 257.0
Dexion Absolute L . . . .140.0 -1.0 150.0 130.0
Edinburgh Dragon . . . .242.5 -5.5 253.1 201.4
Edinburgh Inv Tru . . . . .501.0 -3.0 504.0 422.5
Electra Private E . . . . .1703.0 -33.0 1755.0 1287.0
Fidelity China Sp . . . . . . .79.3 -1.2 114.3 70.0
Fidelity European . . . .1100.0 -37.0 1287.0 912.0
Foreign and Colon . . . .305.5 -4.9 327.9 261.5
Herald Inv Trust . . . . . . .516.0 -10.5 545.5 419.0
HICL Infrastructu . . . . . .120.6 -0.8 123.6 112.7
John Laing Infras . . . . . .107.1 0.0 110.6 103.8
JPMorgan American . . .914.5 -14.5 965.5 721.5
JPMorgan Asian In . . . .196.0 -6.4 243.9 170.1
JPMorgan Emerging . . .550.0 -11.5 610.5 480.1
JPMorgan Indian I . . . .345.0 -13.0 448.5 313.1
JPMorgan Russian . . . .560.0 -19.5 689.0 415.1
LawDebenture Cor . . . .383.0 -9.0 398.7 323.0
Mercantile Invest . . . .1002.0 -19.5 1119.0 823.0
Merchants Trust . . . . . . .377.6 -6.0 431.8 341.5
Monks Inv Trust . . . . . .330.0 -4.4 367.9 298.1
Murray Income Tru . . . .650.0 -11.5 674.0 568.0
Murray Internatio . . . . .971.0 -15.0 1012.0 818.5
NB Global Floatin . . . . .100.5 -0.7 103.0 92.5
Perpetual Income . . . . .270.1 -2.6 276.0 236.5
Personal Assets T . . .34100.0-190.0 35350.031750.0
Polar Capital Tec . . . . . .387.0 -7.4 404.0 299.5
RIT Capital Partn . . . . . .1167.0 -10.0 1360.0 1150.0
Scottish Inv Trus . . . . . .478.0 -9.0 524.0 417.0
Scottish Mortgage . . . .697.0 -17.0 781.0 565.0
SVG Capital . . . . . . . . . .289.8 -5.6 295.5 165.1
Temple Bar Inv Tr . . . . .927.0 -18.0 970.0 791.0
Templeton Emergin . . .578.0 -16.5 678.5 497.0
TRProperty Inv T . . . . . .149.7 -2.4 206.1 136.2
TRProperty Inv T . . . . . .66.8 -1.8 94.0 59.8
Witan Inv Trust . . . . . . .480.7 -8.7 533.0 401.5
3i Group . . . . . . . . . . . . .189.0 -6.2 294.1 166.9
3i Infrastructure . . . . . . .127.5 0.5 128.9 115.6
Aberdeen Asset Ma . . . .277.8 -6.0 277.8 167.8
Ashmore Group . . . . . .385.7 -12.7 420.0 306.4
Brewin Dolphin Ho . . . .167.6 -1.6 177.0 113.7
Camellia . . . . . . . . . . .9500.0 137.5 10950.0 8800.0
Charles Taylor Co . . . . . .142.5 -8.3 160.0 115.6
City of London Gr . . . . . .72.0 0.0 88.0 61.3
City of London In . . . . . .387.5 -20.3 440.0 304.3
Close Brothers Gr . . . . .748.0 -17.0 820.0 590.0
F&C Asset Managem . . .68.7 -1.6 81.7 56.1
Hargreaves Lansdo . . . .521.5 -24.6 646.5 402.5
Helphire Group . . . . . . . . .1.8 0.1 14.0 1.4
Henderson Group . . . . .124.4 -5.3 163.7 95.1
Highway Capital . . . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . . . .379.6 -14.6 524.0 311.6
IG Group Holdings . . . . .467.7 0.7 502.5 393.6
Intermediate Capi . . . . .257.1 -9.3 345.0 197.9
International Per . . . . .253.5 -7.8 388.8 148.5
International Pub . . . . . .121.7 -0.5 121.9 112.7
Investec . . . . . . . . . . . . .358.8 -11.7 522.0 318.4
IP Group . . . . . . . . . . . . .147.0 4.0 160.0 36.0
Jupiter Fund Mana . . . .236.6 -4.6 310.5 184.9
Liontrust Asset M . . . . . .113.3 0.8 125.0 57.9
LMS Capital . . . . . . . . . . .58.0 1.0 64.8 54.0
London Finance & . . . . .19.5 0.0 23.5 18.5
London Stock Exch . . .1082.0 -20.0 1093.0 756.5
Lonrho . . . . . . . . . . . . . . .11.8 -0.3 19.8 8.9
Man Group . . . . . . . . . . .95.7 -3.2 259.6 91.8
Paragon Group Of . . . .186.7 -6.0 206.1 134.6
Provident Financi . . . . .1169.0 -35.0 1181.0 915.0
Rathbone Brothers . . .1286.0 -21.0 1316.0 977.0
Record . . . . . . . . . . . . . . .17.5 1.1 35.5 9.8
RSM Tenon Group . . . . . . .8.1 0.1 32.8 5.6
Schroders . . . . . . . . . .1459.0 -61.0 1906.0 1183.0
Schroders (Non-Vo . . . .1119.0 -36.0 1554.0 970.0
Tullett Prebon . . . . . . . .350.7 -9.8 427.3 262.3
Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
BT Group . . . . . . . . . . . .218.2 -7.3 232.1 161.0
Cable & Wireless . . . . . . .31.3 0.2 48.9 30.1
Cable & Wireless . . . . . .32.0 3.9 55.0 14.2
COLT Group SA . . . . . . . .99.5 -0.7 151.5 84.1
KCOM Group . . . . . . . . . . .71.5 -1.0 84.0 59.8
TalkTalk Telecom . . . . .130.3 -2.0 150.0 118.9
TelecomPlus . . . . . . . .692.0 1.5 802.0 472.0
Booker Group . . . . . . . . .81.6 -1.6 85.3 60.0
Greggs . . . . . . . . . . . . . .521.0 -10.5 558.0 445.0
Morrison (Wm) Sup . . .295.0 -4.9 328.0 277.0
Ocado Group . . . . . . . . .112.2 -2.9 233.0 52.9
Sainsbury (J) . . . . . . . . .313.0 -5.2 362.8 263.5
Tesco . . . . . . . . . . . . . . .321.9 -2.6 420.1 308.7
Associated Britis . . . . .1225.0 -10.0 1233.0 977.0
Cranswick . . . . . . . . . . .812.5 -9.5 841.0 588.5
Dairy Crest Group . . . . .304.8 -14.4 409.7 289.7
Devro . . . . . . . . . . . . . . .307.0 -3.3 332.2 232.0
Tate & Lyle . . . . . . . . . .688.0 -7.0 720.5 544.5
Unilever . . . . . . . . . . .2086.0 -18.0 2189.0 1892.0
Mondi . . . . . . . . . . . . . .564.0 -11.0 664.0 413.5
Centrica . . . . . . . . . . . . .322.8 -4.2 333.0 278.8
International Pow . . . . .417.3 -0.3 418.3 279.4
National Grid . . . . . . . .655.0 -2.0 659.0 569.0
Pennon Group . . . . . . . .751.0 -9.5 752.0 623.5
Severn Trent . . . . . . . .1720.0 -31.0 1720.0 1375.0
United Utilities . . . . . . .620.5 -6.0 637.0 560.0
Cookson Group . . . . . . .738.0 -35.0 747.5 395.8
Rexam . . . . . . . . . . . . . .431.9 -8.3 438.0 299.8
RPC Group . . . . . . . . . . .371.0 -5.6 393.2 300.5
Smith (DS) . . . . . . . . . . .169.5 -3.0 183.7 113.3
Smiths Group . . . . . . .1048.0 4.0 1340.0 869.5
Price Chg High Low
Reckitt Benckiser . . . .3620.0 -19.0 3660.0 3100.0
Redrow . . . . . . . . . . . . .122.5 -5.5 135.3 103.5
Taylor Wimpey . . . . . . . .49.9 -1.6 52.8 28.7
Bodycote . . . . . . . . . . . .415.2 -14.5 426.5 225.6
Fenner . . . . . . . . . . . . .448.0 -10.5 483.7 280.0
IMI . . . . . . . . . . . . . . . . .992.0 -30.5 1119.0 636.5
Melrose . . . . . . . . . . . . .433.9 -10.8 434.9 268.0
Northgate . . . . . . . . . . .198.7 -4.2 342.0 190.0
Rotork . . . . . . . . . . . . .2220.0 -81.0 2220.0 1501.0
Spirax-Sarco Engi . . . .2300.0 -47.0 2300.0 1649.0
Weir Group . . . . . . . . .1700.0 -53.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . . .378.1 -14.2 460.5 315.0
Ferrexpo . . . . . . . . . . . . .287.1 -11.7 499.0 238.7
Talvivaara Mining . . . . .190.3 -8.7 538.5 179.6
BBA Aviation . . . . . . . . .201.1 -3.2 223.4 156.0
Stobart Group Ltd . . . . .127.7 -2.6 149.5 112.0
Admiral Group . . . . . . .1225.0 -27.0 1754.0 787.0
Amlin . . . . . . . . . . . . . . .327.4 -8.1 427.0 270.6
Beazley . . . . . . . . . . . . .145.9 -2.7 151.8 109.6
Catlin Group Ltd. . . . . . .422.9 -4.5 449.0 337.0
Hiscox Ltd. . . . . . . . . . .406.6 -6.6 424.7 340.5
ITV . . . . . . . . . . . . . . . . . .86.0 -2.1 89.9 51.7
Johnston Press . . . . . . . . .5.8 0.4 8.2 4.1
MecomGroup . . . . . . . .157.0 -9.0 310.0 134.5
Moneysupermarket. . . .132.3 -3.4 135.7 92.5
Pearson . . . . . . . . . . . .1126.0 -15.0 1255.0 1038.0
PerformGroup . . . . . . .305.0 -2.5 317.2 150.0
Reed Elsevier . . . . . . . . .527.5 -12.0 578.0 461.3
Rightmove . . . . . . . . . .1514.0 -22.0 1519.0 1036.0
STV Group . . . . . . . . . . . .114.5 -0.1 168.0 76.3
Tarsus Group . . . . . . . . .145.0 0.3 165.0 119.5
Trinity Mirror . . . . . . . . . .30.8 0.3 54.3 29.5
UBM . . . . . . . . . . . . . . . .598.0 -25.5 641.5 416.0
UTVMedia . . . . . . . . . . .159.5 -1.0 162.3 92.5
Wilmington Group . . . . .91.3 0.0 151.0 78.5
WPP . . . . . . . . . . . . . . .843.0 -19.0 880.0 578.0
Yell Group . . . . . . . . . . . . .3.4 0.0 11.0 3.4
African Barrick G . . . . . .355.0 1.7 616.5 346.1
Anglo American . . . . .2349.0 -55.0 3181.0 2138.5
Anglo Pacic Gro . . . . . .310.0 -5.4 340.0 237.9
Antofagasta . . . . . . . . .1178.0 -38.0 1491.0 900.5
Aquarius Platinum . . . .143.5 -5.3 360.0 129.5
Avocet Mining . . . . . . . .166.2 -6.4 286.8 156.5
BHP Billiton . . . . . . . . .1970.0 -71.5 2560.0 1667.0
Bumi . . . . . . . . . . . . . . .543.5 -46.1 1158.0 480.0
Centamin (DI) . . . . . . . . .64.5 -1.0 141.5 63.1
Jardine Lloyd Tho . . . . .683.0 -3.0 764.5 576.0
Lancashire Holdin . . . . .821.0 -7.0 821.0 618.5
RSA Insurance Gro . . . .104.9 -2.9 139.8 99.6
Aviva . . . . . . . . . . . . . . .305.5 -6.4 450.3 275.3
Legal & General G . . . . .118.6 -2.3 135.0 89.8
Old Mutual . . . . . . . . . . .169.7 -24.4 164.6 98.1
Phoenix Group Hol . . . .524.5 -3.0 688.0 451.1
Prudential . . . . . . . . . . .762.5 -37.0 797.5 509.0
Resolution Ltd. . . . . . . .224.2 -3.2 316.1 219.0
St James's Place . . . . . .339.6 -6.6 376.0 294.0
Standard Life . . . . . . . . .229.1 -6.2 250.7 172.0
4Imprint Group . . . . . . .277.5 -2.0 312.5 200.0
Aegis Group . . . . . . . . . .177.9 -5.6 187.4 115.7
Bloomsbury Publis . . . .109.9 -1.5 138.0 91.3
British Sky Broad . . . . .674.5 4.5 850.0 618.5
Centaur Media . . . . . . . .33.0 -0.8 56.3 32.3
Chime Communicati . . .217.8 1.5 298.5 163.0
Creston . . . . . . . . . . . . . .64.0 -0.5 121.0 47.0
Daily Mail and Ge . . . . .420.4 -4.9 505.5 343.4
Euromoney Institu . . . .791.0 -20.0 809.5 522.5
Future . . . . . . . . . . . . . . . .11.0 0.3 19.9 8.3
Haynes Publishing . . . .195.0 0.0 255.0 192.0
Huntsworth . . . . . . . . . .48.3 -2.5 76.3 32.3
Informa . . . . . . . . . . . . .430.4 -17.3 451.0 313.9
ITE Group . . . . . . . . . . . .224.6 -7.4 258.0 157.7
Eurasian Natural . . . . .564.0 -23.0 933.5 522.0
Fresnillo . . . . . . . . . . . .1632.0 -73.0 2150.0 1302.0
GemDiamonds Ltd. . . .272.0 -2.0 310.6 179.8
Glencore Internat . . . . .423.4 -14.9 531.1 348.0
Hochschild Mining . . . .488.9 -8.9 612.5 365.9
Kazakhmys . . . . . . . . . .889.5 -40.5 1405.0 730.0
Kenmare Resources . . . .54.9 -4.0 61.5 31.0
Lonmin . . . . . . . . . . . .1025.0 -40.0 1645.0 941.0
NewWorld Resourc . . .402.5 -6.2 1060.0 391.0
Petra Diamonds Lt . . . .159.0 -7.1 188.2 97.0
Petropavlovsk . . . . . . . .474.5 -13.9 913.0 457.3
Polymetal Interna . . . .988.0 -31.5 1175.0 877.0
Randgold Resource . .5440.0-160.0 7565.0 4580.0
Rio Tinto . . . . . . . . . . .3547.0 -171.0 4595.0 2712.5
Vedanta Resources . . .1237.0 -70.0 2352.0 928.0
Xstrata . . . . . . . . . . . . . .1167.5 -39.0 1550.0 764.0
Inmarsat . . . . . . . . . . . .440.4 -9.1 620.0 389.3
Vodafone Group . . . . . . .171.5 -0.1 182.7 155.1
Genesis Emerging . . . .492.5 -7.8 543.5 424.0
Afren . . . . . . . . . . . . . . .150.0 -9.7 171.0 73.6
BG Group . . . . . . . . . . .1415.5 -27.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .434.9 -5.2 504.6 363.2
Cairn Energy . . . . . . . . .336.7 -9.0 511.6 291.9
EnQuest . . . . . . . . . . . . .123.6 -2.8 140.0 85.7
Essar Energy . . . . . . . . .137.5 -9.1 461.0 101.6
Exillon Energy . . . . . . . .144.0 -6.6 469.7 123.0
Heritage Oil . . . . . . . . . .142.1 -1.3 262.1 133.1
Ophir Energy . . . . . . . . .553.0 6.0 561.0 184.5
Premier Oil . . . . . . . . . .380.7 -11.1 500.3 310.0
Royal Dutch Shell . . . .2136.5 -26.5 2402.0 1883.5
Royal Dutch Shell . . . .2202.5 -23.0 2489.0 1890.5
Ruspetro . . . . . . . . . . . .199.0 -5.5 230.0 125.0
Salamander Energy . . .248.4 3.3 302.8 182.3
Soco Internationa . . . . .296.2 -6.0 397.5 278.0
TullowOil . . . . . . . . . . .1510.0 -35.0 1601.0 945.5
Amec . . . . . . . . . . . . . .1129.0 -35.0 1207.0 740.5
Hunting . . . . . . . . . . . . .917.5 -25.5 968.0 530.0
Kentz Corporation . . . . .427.0 -7.0 508.0 375.0
Lamprell . . . . . . . . . . . . .331.5 -8.4 395.2 220.7
Petrofac Ltd. . . . . . . . .1770.0 -47.0 1772.0 1108.0
Wood Group (John) . . .749.5 -16.0 763.5 469.9
Burberry Group . . . . . .1495.0 -69.0 1600.0 1092.0
PZ Cussons . . . . . . . . . .334.0 -12.1 387.9 285.0
Supergroup . . . . . . . . . .351.8 -16.8 1600.0 325.3
AstraZeneca . . . . . . . .2867.0 -55.5 3194.0 2543.5
BTG . . . . . . . . . . . . . . . .385.3 -9.0 389.2 236.8
Genus . . . . . . . . . . . . . .1316.0 -33.0 1368.0 853.5
GlaxoSmithKline . . . . .1470.0 -12.0 1497.0 1205.0
Hikma Pharmaceuti . . .654.0 -32.0 869.0 555.5
Shire Plc . . . . . . . . . . .2045.0 -44.0 2300.0 1818.0
Capital & Countie . . . . .198.0 -1.5 203.7 158.1
Daejan Holdings . . . . .3233.0 -53.0 3300.0 2282.0
F&C Commercial Pr . . . .103.8 -0.3 108.0 92.6
Grainger . . . . . . . . . . . . .105.1 -2.2 133.2 77.3
London & Stamford . . . .114.0 -2.0 140.0 103.9
Savills . . . . . . . . . . . . . .353.2 -5.1 427.1 256.2
UK Commercial Pro . . . . .73.7 -0.4 85.5 65.1
Big Yellow Group . . . . .283.6 -7.1 344.4 218.0
British Land Co . . . . . . .485.5 -6.8 629.5 444.0
Capital Shopping . . . . .327.4 -8.1 408.6 288.7
Derwent London . . . . .1725.0 -5.0 1880.0 1400.0
Great Portland Es . . . . .350.0 -4.4 445.0 312.9
Hammerson . . . . . . . . .417.0 -9.0 490.9 345.2
Hansteen Holdings . . . . .75.1 -0.1 89.5 68.0
Land Securities G . . . . . .731.0 -13.5 885.0 612.0
SEGRO . . . . . . . . . . . . . .228.7 -6.4 329.6 195.0
Shaftesbury . . . . . . . . .501.0 -7.9 539.0 441.2
Aveva Group . . . . . . . .1668.0 -56.0 1799.0 1298.0
Computacenter . . . . . . .411.0 -9.4 490.0 324.7
Fidessa Group . . . . . . .1543.0 -37.0 2109.0 1444.0
Invensys . . . . . . . . . . . . .191.4 -5.3 340.6 180.9
Logica . . . . . . . . . . . . . . .79.7 -3.2 144.8 59.0
Micro Focus Inter . . . . .462.5 -3.7 476.7 242.9
Misys . . . . . . . . . . . . . . .349.9 -1.8 420.2 214.9
Sage Group . . . . . . . . . .284.6 -2.4 312.4 231.7
SDL . . . . . . . . . . . . . . . . .711.5 -6.5 756.0 586.0
Telecity Group . . . . . . .806.0 -14.0 808.5 450.5
Aggreko . . . . . . . . . . . .2301.0 -66.0 2316.0 1522.0
Ashtead Group . . . . . . .255.8 -11.8 271.1 99.4
Atkins (WS) . . . . . . . . . .756.0 -37.5 820.0 490.2
Babcock Internati . . . . .851.0 -15.0 851.8 570.5
Berendsen . . . . . . . . . . .535.0 -10.0 568.0 402.7
Bunzl . . . . . . . . . . . . . .1030.0 -14.0 1030.0 676.5
Cape . . . . . . . . . . . . . . . .381.0 -6.5 591.5 295.0
Capita . . . . . . . . . . . . . .748.5 -19.5 767.0 611.5
Carillion . . . . . . . . . . . . .272.2 -7.6 403.2 261.0
De La Rue . . . . . . . . . . .923.5 9.0 1001.0 730.0
Diploma . . . . . . . . . . . . .451.3 -6.3 453.0 284.0
Electrocomponents . . . .231.9 -9.5 294.9 182.2
Experian . . . . . . . . . . . .998.0 -33.0 998.0 665.0
Filtrona PLC . . . . . . . . . .468.0 -7.7 484.5 296.3
G4S . . . . . . . . . . . . . . . .289.9 -9.4 292.1 219.9
Hays . . . . . . . . . . . . . . . . .91.6 -4.2 119.0 58.9
Homeserve . . . . . . . . . .243.3 -6.5 532.0 214.7
Howden Joinery Gr . . . .120.0 -1.0 130.8 93.1
Interserve . . . . . . . . . . .287.2 -7.4 341.3 270.1
Intertek Group . . . . . .2597.0 -80.0 2605.0 1744.0
Michael Page Inte . . . . .434.6 -11.6 567.0 323.0
Mitie Group . . . . . . . . . .289.5 -0.5 290.0 206.8
PayPoint . . . . . . . . . . . .645.0 -16.5 670.0 450.0
Premier Farnell . . . . . . .210.8 -8.1 301.0 144.5
Regus . . . . . . . . . . . . . . .111.0 -5.7 117.5 64.0
Rentokil Initial . . . . . . . .89.9 -4.1 100.9 58.2
RPS Group . . . . . . . . . . .236.7 -8.7 253.0 156.6
Serco Group . . . . . . . . .563.0 -18.5 597.5 458.0
Shanks Group . . . . . . . . .94.0 -1.8 130.9 90.8
SIG . . . . . . . . . . . . . . . . .108.7 -4.2 153.5 77.0
Travis Perkins . . . . . . .1059.0 -41.0 1125.0 715.0
Wolseley . . . . . . . . . . .2382.0 -99.0 2558.0 1404.0
ARM Holdings . . . . . . . .585.0 -18.5 645.0 464.0
CSR . . . . . . . . . . . . . . . . .198.4 -3.8 391.4 154.1
Imagination Techn . . . .682.5 -9.0 717.0 296.9
Spirent Communica . . .166.5 -2.5 172.8 105.8
British American . . . .3244.0 -30.5 3259.0 2592.0
Imperial Tobacco . . . .2546.0 -28.0 2591.0 1974.0
Betfair Group . . . . . . . . .812.0 4.0 901.0 567.0
Bwin.party Digita . . . . .158.4 -4.4 174.0 100.6
Carnival . . . . . . . . . . . .1979.0 -35.0 2642.0 1742.0
Compass Group . . . . . . .651.5 -6.0 671.0 512.5
Domino's Pizza UK . . . .432.0 2.8 526.0 377.0
easyJet . . . . . . . . . . . . .498.0 -14.1 498.0 302.5
FirstGroup . . . . . . . . . . .196.9 -6.9 370.2 189.5
Go-Ahead Group . . . . .1150.0 -17.0 1598.0 1125.0
Greene King . . . . . . . . .519.0 -1.5 529.0 410.0
InterContinental . . . . .1474.0 -49.0 1497.0 955.0
International Con . . . . . .171.8 -9.2 258.7 132.0
Ladbrokes . . . . . . . . . . .175.8 -4.6 175.8 114.0
Marston's . . . . . . . . . . . .98.8 -2.4 112.0 84.6
Millennium& Copt . . . .481.5 -7.2 535.0 371.2
Mitchells & Butle . . . . . .268.3 -6.1 336.8 215.6
National Express . . . . .219.4 -6.8 270.2 201.6
Rank Group . . . . . . . . . .122.7 -1.8 153.7 109.5
Restaurant Group . . . . .287.0 -6.0 335.0 254.9
Spirit Pub Compan . . . . .55.8 -2.0 62.8 35.3
Stagecoach Group . . . . .253.1 -5.5 287.4 220.0
TUI Travel . . . . . . . . . . . .189.2 -6.4 250.0 136.7
Wetherspoon (J.D. . . . . .418.1 -6.1 468.3 380.5
Whitbread . . . . . . . . . .1830.0 -30.0 1872.0 1409.0
WilliamHill . . . . . . . . . .278.3 -1.7 281.8 183.3
Abcam . . . . . . . . . . . . .356.0 -2.0 460.0 320.0
Advanced Medical . . . . .77.8 -1.0 95.0 64.8
Albemarle & Bond . . . .323.0 4.0 400.1 294.9
Amerisur Resource . . . . .24.8 -1.5 29.0 9.5
Andes Energia . . . . . . . . .38.1 0.4 82.8 17.5
Andor Technology . . . .529.0 -4.0 685.0 466.0
Archipelago Resou . . . . .60.8 -0.3 79.0 56.5
ASOS . . . . . . . . . . . . . . .1613.0 -46.0 2468.0 1142.0
Aurelian Oil & Ga . . . . . . .21.8 -0.8 71.0 16.0
Avanti Communicat . . .249.8 -1.0 496.8 241.3
Blinkx . . . . . . . . . . . . . . .47.8 -4.5 158.0 41.3
Borders & Souther . . . . .131.0 -41.5 131.0 43.5
BowLeven . . . . . . . . . . . .82.5 -1.8 342.3 62.0
Brooks Macdonald . . .1325.0 0.0 1372.5 940.0
Cluf Gold . . . . . . . . . . . .85.3 -3.3 112.8 66.5
Cove Energy . . . . . . . . .222.0 -5.0 242.0 61.0
Daisy Group . . . . . . . . . .112.5 -1.5 127.0 95.0
EMIS Group . . . . . . . . . .555.0 -2.5 580.5 397.5
Faroe Petroleum . . . . . .174.0 -3.8 179.0 130.0
Gulfsands Petrole . . . . . .131.8 -5.3 290.0 125.0
GWPharmaceutical . . . .89.9 -1.9 130.0 78.5
H&T Group . . . . . . . . . .298.0 -3.0 395.0 286.0
Hargreaves Servic . . . .1264.0 -23.0 1265.0 855.0
Healthcare Locums . . . . . .1.9 -0.3 2.0 1.6
ImpellamGroup . . . . . .350.0 0.0 382.6 225.0
Iomart Group . . . . . . . .139.0 -1.0 151.0 85.5
James Halstead . . . . . . .512.5 -5.0 527.5 410.3
London Mining . . . . . . .294.3 -11.0 436.5 257.5
Lupus Capital . . . . . . . . .122.5 2.5 142.0 86.0
M. P. Evans Group . . . . .485.0 6.5 495.0 371.0
Majestic Wine . . . . . . . .480.0 0.8 510.0 315.0
May Gurney Integr . . . .232.0 0.5 302.0 230.0
Monitise . . . . . . . . . . . . .36.8 -0.8 40.0 24.0
Mulberry Group . . . . .2249.0 -81.0 2290.0 1290.0
Nanoco Group . . . . . . . . .67.5 -0.5 90.0 38.0
Nautical Petroleu . . . . .337.5 -8.5 392.5 223.5
Nichols . . . . . . . . . . . . .669.0 5.5 675.0 487.5
Numis Corporation . . . . .88.3 0.0 119.6 72.0
Pan African Resou . . . . . .15.8 0.0 18.3 9.5
Patagonia Gold . . . . . . . .37.0 -3.0 70.0 33.5
Prezzo . . . . . . . . . . . . . . .66.0 2.5 71.5 53.5
Rockhopper Explor . . . .351.8 -10.3 393.5 141.0
RWS Holdings . . . . . . . .523.5 -1.0 560.0 385.0
Secure Trust Bank . . . .1075.0 -5.0 1077.5 755.0
Sirius Minerals . . . . . . . . .19.8 -0.8 32.0 6.4
Songbird Estates . . . . . .120.0 -1.0 160.3 103.0
Valiant Petroleum . . . .584.5 -8.0 628.5 400.0
Young & Co's Brew . . . .622.5 -3.5 712.0 580.0
Cable & Wireless W . . . . . . . . . . .32.0 12.2
Salamander Energy . . . . . . . . . .248.4 1.3
Ophir Energy . . . . . . . . . . . . . . .553.0 1.1
Drax Group . . . . . . . . . . . . . . . . .526.5 1.0
De La Rue . . . . . . . . . . . . . . . . . .923.5 1.0
British Sky Broadc . . . . . . . . . . .674.5 0.7
Cable & Wireless C . . . . . . . . . . . .31.3 0.7
Domino's Pizza UK . . . . . . . . . .432.0 0.7
BH Macro Ltd. GBP . . . . . . . . . .2031.0 0.6
Betfair Group . . . . . . . . . . . . . . .812.0 0.5
Old Mutual . . . . . . . . . . . . . . . . . .169.7 -14.4
Bumi . . . . . . . . . . . . . . . . . . . . . .543.5 -8.5
Kenmare Resources . . . . . . . . . . .54.9 -7.3
Essar Energy . . . . . . . . . . . . . . . .137.5 -6.6
Afren . . . . . . . . . . . . . . . . . . . . . .150.0 -6.5
Vedanta Resources . . . . . . . . . .1237.0 -5.7
International Cons . . . . . . . . . . . .171.8 -5.4
Regus . . . . . . . . . . . . . . . . . . . . . .111.0 -5.1
Atkins (WS) . . . . . . . . . . . . . . . .756.0 -5.0
Morgan Crucible Co . . . . . . . . . .328.9 -4.9
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 5.250 12 . . . . . . .100.57 -0.02 105.0 100.5
Tsy 9.000 12 . . . . . .102.42 0.00 110.2 101.3
Tsy 2.500 13 . . . . . .283.80 -0.03 287.7 282.8
Tsy 4.500 13 . . . . . . .103.50 -0.01 106.4 103.5
Tsy 8.000 13 . . . . . . .110.76 -0.02 116.4 110.7
Tsy 5.000 14 . . . . . . .110.73 0.03 112.9 110.0
Tsy 8.000 15 . . . . . . .126.18 0.11 129.2 124.8
Tsy 4.750 15 . . . . . . .113.57 0.10 115.4 110.2
Tsy 4.000 16 . . . . . . .113.03 0.16 114.7 106.9
Tsy 2.500 16 . . . . . .343.95 0.15 345.7 320.7
Tsy 1.250 17 . . . . . . . .116.25 0.18 117.1 109.4
Tsy 8.750 17 . . . . . . .139.30 -0.07 141.9 134.9
Tsy 12.000 17 . . . . . .118.72 0.00 127.9 117.8
Tsy 5.000 18 . . . . . . .121.01 0.22 122.5 112.3
Tsy 4.500 19 . . . . . . .119.67 0.24 120.9 108.4
Tsy 3.750 19 . . . . . . .114.82 0.30 115.9 102.6
Tsy 4.750 20 . . . . . .122.33 0.34 123.5 109.7
Tsy 2.500 20 . . . . . .365.62 0.31 369.3 327.0
Tsy 8.000 21 . . . . . . .150.87 0.36 153.4 137.3
Tsy 1.875 22 . . . . . . .127.63 0.42 129.2 114.8
Tsy 4.000 22 . . . . . .116.65 0.40 118.2 102.2
Tsy 2.500 24 . . . . . .328.92 0.48 334.7 286.3
Tsy 5.000 25 . . . . . . .127.93 0.51 130.6 111.0
Tsy 1.250 27 . . . . . . .123.49 0.39 127.0 107.6
Tsy 4.250 27 . . . . . . .118.82 0.44 122.7 101.7
Tsy 6.000 28 . . . . . .142.98 0.42 148.0 123.7
Tsy 4.125 30 . . . . . . .312.18 0.14 322.8 271.0
Tsy 4.750 30 . . . . . .124.82 0.23 130.5 107.1
Tsy 4.250 32 . . . . . . . .117.18 0.23 123.1 100.2
Tsy 4.250 36 . . . . . . .116.72 0.19 123.9 99.6
Tsy 4.750 38 . . . . . . .126.13 0.19 134.2 107.9
Tsy 4.500 42 . . . . . .122.38 0.15 130.8 104.1
% %
AUTOMOBILES & PARTS
AEROSPACE & DEFENCE
BANKS
BEVERAGES
CHEMICALS
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXEDLINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER &MULTIUTILITIES
GENERAL INDUSTRIALS
GENERAL RETAILERS
HEALTH CARE EQUIPMETN & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
NON LIFE INSURANCE
LIFE INSURANCE
MEDIA
MINING
MOBILE TELECOMS
NON EQUITY INVESTM. COMM.
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
REAL ESTATE INVEST. TRUSTS
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. &EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
fx360.com
The contents of this column are provided for general information purposes only. One should consider the
appropriateness of the information in light of their own objectives, financial situation or needs before trading.
SELL IN MAY AND GO AWAY
REMAINS EFFECTIVE ADVICE
F
ORGET merger arbitrage, forget
relative strength, forget long/short
hedge books. In investing, one
simple strategy has been wildly more
effective than any modern, sophisticated
computer-driven algorithms. You may
have heard the old trader manta sell in
May and go away. I certainly have, but
until I looked up its results I never realised
just how productive this investment
strategy has been.
The sell in May strategy refers to the
fact that, over the past sixty years, all the
gains in the Dow Jones Industrial Average
(DJIA) have been made between 1
November and 30 April. In fact if, starting
in 1950, you invested $10,000 into the
DJIA only during those six months it would
have compounded to more than $527,000.
The same $10,000 invested during the
other six months of the year would have
resulted in a net loss of approximately
$470. That is a gap so vast that it
essentially defines the difference between
winning and losing as an investor.
Certainly there are some notable caveats.
The sell in May strategy applies mainly
to the thirty large stocks of the Dow. The
smaller, more entrepreneurial businesses
on Nasdaq dont quite fall into the
seasonal pattern, with gains lasting
through to the end of June. Furthermore,
there have been some exceptionally
positive years for the bad six months.
For example the Dow gained 19 per cent in
1958 during the summer, 10 per cent in
1995 and 18.9 per cent as recently as 2009.
But those are the exceptions that prove the
rule. The bottom line is that, over the past
sixty years, seasonality has had a
tremendous impact on US equity investing
and there is little reason to believe that
2012 will be different.
There are three reasons why stocks may
face turbulence over the next six months:
slowdown in Asia, high gasoline prices in
US and chronic recession in Europe. In
Asia, the latest news from China suggests
that small-to-medium sized enterprises
are continuing to experience decline in
demand. The latest HSBC Purchasing
Managers Index (PMI) manufacturing
data, released over the weekend, showed
twitter.com/fx360 facebook.com/fx360
DIRECTOR OF CURRENCY RESEARCH, GFT
THE TIPSTER
EasyJet taxiing for take-off
EasyJet shares have been taking off
since last summer, tacking on over 50
per cent to highs of almost 500p. Look
for any drop back towards the 460p
level to take a long position, as
trendline support and the 50 and 60-
day simple moving averages should
offer a buying opportunity. Spread Co
quotes easyJet at 482.27p-484.19p.
Carpetrights trading update today
should lay the paving for a position on
the companys performance. With it
being no secret that high street
retailers are having a struggle, will the
flooring specialist be able to buck the
trend and post some positive news?
Capital Spreads quotes a price of
599.7p-602.8p.
The French Cac took a bit of a tumble
following the first round of the French
presidential elections and as polls
indicate that Francois Hollande
shouldn't have too much trouble
getting into the lyse Palace. France's
index fell in line with general risk
aversion across equity markets, so the
question is whether this presents a
buying opportunity or not? Capital
Spreads quotes a price of 3,115-3,116
for the French CAC 40.
The last update from insurer Admiral
prompted a surge of around 7 per cent
in the shares, as investors took heart
from better-than-expected profits.
Still, some of that enthusiasm might
wash away if Thursdays update shows
that overall claims are still rising,
acting as something of an anchor,
holding back further growth in
earnings. IGs price on Admiral is
1,187p-1,191p.
CRAIG DRAKE
TUESDAY 24 APRIL 2012
23
cityam.com
TRADING MANAGEMENT WEALTH
With its exible, intuitive interface and powerful trading features, DealBook for iPad is a
convenient way to tap into the worlds markets with GFTs award-winning trading platform.
|u||screenchart|ngw|thdraw|ngtoo|s
||vestrear|ngChBCv|deoforqua||fy|ngcustorers
Custor|sab|eru|t|v|ew|nterface
When trading CFDs, Forex and Spread bets, it is possible to lose more than your initial deposit.
Download today free from the App Store. Search GFT DealBook.
Visit gftuk.com/ipad to nd out more.
GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority. 2012 Global Futures and Forex, Ltd.
All rights reserved. CD03UK.218.021512 Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries.
App Store is a service mark of Apple Inc.
SPREAD BETS, CFDs AND FOREX.
Now on DealBook for iPad.
SPR|A0 B|JS | C|0s | |0R|X | 6|JUK C0M | |R||PH0h|
facebookcorgftrarketsuk tw|ttercorgftuk
BORIS SCHLOSSBERG
that the index remained below the 50
boom/bust line at 49. This suggests that
China will likely remain in a soft landing
environment, with growth drifting towards
the 8 per cent level. With US companies
now selling as much to China as they
source from it, slowdown in demand is
likely to curtail these companies earnings
in the future.
In the US, the economy is hampered by
painfully high prices at the gas pump. With
large swathes of the country paying well
above $4.50 per gallon, consumers and
businesses are clearly in a cautious mood.
This is reflected in the latest labour data
statistics, showing that jobless claims have
inched uncomfortably away from the
350,000 per week mark. Over the past
several weeks, the price of gasoline has
declined by about 5 cents, the first time
since December that petrol prices have
eased. However, unless gasoline prices
commence a dramatic decline, the
pressure on consumer wallets during the
key summer driving season will likely
dampen economic activity in the US.
Lastly Europe remains a disaster. The
latest PMI data, released yesterday,
indicates that the core European
economies of Germany and France are
unlikely to rebound soon. The data for the
region as a whole continues to slip further
into negative territory, printing at 47.4
against 49.1 the month prior. The weak PMI
reports suggest that growth in core
European economies is in peril,
undermining any expectations of a
rebound to positive GDP in the second
quarter of this year. German composite
PMI tends to be a strong leading indicator
to overall GDP growth and, as it teeters on
the edge of the 50 boom/bust line, it
indicates that Europes leading economy
may remain in recession for the near term.
None of this bodes well for stocks which
are likely to remain under pressure as the
summer proceeds. With all three areas of
the globe seeing economic slowdown, the
recent rally in equities could be easily
unwound as we approach autumn. This is
why I believe that sell in May and go
away remains as good advice in 2012 as it
has been for the past sixty years.
Dow Jones Industrial Average
2010 2011 2012
10.0
10.5
11.0
11.5
12.0
12.5
13.0
ooos 12,865.98
23 Apr
G
E
T
T
Y
CURRENCY STRATEGIST
JOEL KRUGER
My pick: Sell sterling-dollar at $1.6210
Expertise: Technical analysis
Average time frame of trades: 3 days to 1 week
The market has recently broken to fresh 2012 highs beyond
$1.6000. This now likely opens additional upside, back towards
the October 2011 peak by $1.6165 further up. While our core bias
remains bearish, we will stand aside and look for opportunities
to sell into rallies above $1.6200, in anticipation of an eventual
bearish resumption. A break and close back below $1.6000 is
now required to alleviate immediate topside pressures. Sell
$1.6210 for a $1.5800 objective. Stop at $1.6410.
ANALYST PICKS
Trading up in a sideways market
STRATEGIST
ILYA SPIVAK
My pick: Short gold (pending)
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
Recession in the Eurozone and slowdown in China bear down on
global growth, while the Fed is turning less dovish. Inflation will
likely be contained as QE3 prospects fade. Fears of a credit crisis,
triggered by a Eurozone default, have been downgraded after
ECB LTRO efforts buffered the banks with close to 1 trillion in
capital. This stands to sap store-of-value demand for gold. I will
sell on a weekly close of $1,622.25, which would clear support at
the September 2011 bottom and a trend line from late 2008.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Aussie-dollar breakout, long euro-Swissie/sterling-Aussie
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
The Brent oil short last week worked well. However, the euro-
dollar short below $1.3000 never materialised and euro-Swissie
is still anchored to SFr1.2000. I will stick with the latter, as the
Swiss National Bank is being backed into a corner, with few
options apart from manipulation. Elsewhere, a wedge on
Aussie-dollar will soon break, and follow-through would be
good either way. A sterling-Aussie short scenario plays to
alternative expectations on GDP and CPI.
TUESDAY 24 APRIL 2012
24
MANAGEMENT WEALTH TRADING
cityam.com
Flat markets dont need to mean flat profits, writes Craig Drake
boundaries of the channel. When the
price approaches support or resistance,
then you should look to establish a
position. In the case of the Barclays
price action, looking to take a short
position at 220p in anticipation of
sellers driving the price down and on
the other side looking to establish a
long position at 210p in anticipation of
buyers being tempted into the market.
This swing trading example can be
used for any time frame, but is most
effective on a daily chart. Typically, the
strength of support and resistance
points is seen as being stronger the
more times the market has tested that
boundary. Also, the longer that
channel has been in place, the more
reliable that channel can be seen to be.
But as the Barclays example shows, it is
important to be vigilant in case of a
breakout from the range. As usual, this
is where a well-placed stop loss can
come in. In order to protect against a
sudden breakout, a good strategy is to
place a stop outside of the determined
support or resistance line, meaning
that if an event should shake the
markets, you wont be hit by big losses.
Another way of achieving volatility
and with it increased chances to gain is
W
HEN it comes to the
markets, most traders are
agnostic about which way
the market is moving,
whether up or down, just as long
as it is moving in a direction.
Following the trend is one of the
basics of spread betting. But
markets move in a non-trending or
sideways direction more often
than they trend. This has been
particularly true this year, where
flat, sideways markets with no day-
long narrative have often made it
a slog to get a strategy to
consistently pay off. So how do you
achieve results in a sideways
market? One effective strategy is to
tighten the range in which you
trade. Barclays has broken out of its
trend, but had been ranging
between 210p and 220p for most of
last week. As David Jones, chief
market strategist for IG Index,
points out, we saw buyers at 220p
and sellers at 210p but there was
nothing to be gained from trading
around 215p a no-mans land for
takers. In such a market, traders
should identify the support and
resistance levels which are the
through the use of binary options. To
take the example of the FTSE, with
half an hour left until the market
close, the FTSE could be trading at
5,700, down 12 points from
Mondays close. The binary price
given by IG for the FTSE to finish up
is 18-22. If you believe that the FTSE is
going to rally on the day, you can bet
10 a point at 22. All binaries close at
100 or 0, meaning that if the FTSE
were to close strongly, up 2 points,
your binary would settle at 100, net-
ting you 780. If wrong it would set-
tle at 0, losing you 220. As a result,
rather than the two points of a
straight FTSE position, youve lever-
aged to closer to eight points with a
healthy risk reward ratio.
Non-trending days shouldnt be seen as tumbleweed in the markets
Barclays
17Apr 18Apr 19Apr 20Apr 23Apr
206
204
208
210
222
220
218
216
214
212
p
240.55
23Apr
G
OLD has been struggling to
make any real breakthroughs
of late, stuck below the
psychological $1,700 an
ounce level since the beginning of
March. On the New York Mercentile
Exchange, Comex gold futures
open interest, a liquidity gauge
based on the number of contracts
outstanding, saw some of its lowest
levels of 2012 spot gold fell 1.05
per cent over the week.
But while gold is struggling to
gain any upside in the short term,
the fundamental drivers of a bull
market that has lasted more than
10 years remain. Monetary debase-
ment, and financial and political
instability have pushed an investor
flight to safety and an easing of pur-
chasing restrictions has made gold
as a retail investment product more
accessible than ever.
The Eurozone problem has been
one of the biggest sources of this
instability and the union as a whole
is a long way off finding a meaning-
ful, long-term solution to the funda-
mental flaws within its single
currency system. The union-wide
nature of this problem was brought
home yesterday when Dutch Prime
Minister Mark Rutte and his cabinet
resigned after failing to reach agree-
ment on reducing the countrys
budget to meet European guide-
lines.
BURSTING THE BUBBLE
Gold has risen by 17 per cent com-
pound year-on-year over the last 12
years, equivalent to about 650 per
cent over the course of the gold bull
run. But while many talk about a
speculative gold bubble, Ross
Norman, chief executive of Sharps
Pixley, points out that we are seeing
a bubble, but not in gold. With the
US balance sheet more than dou-
bling, it is not gold and other com-
modities that are expensive, but
cash that is cheap. And the cult of
monetary expansion is yet still
going strong at the Federal Reserve
and Threadneedle Street. Norman
predicts that, should the Federal
Reserve follow its plans to hold
interest rates until at least the end
of 2014, then $3,500 an ounce is not
beyond the realms of possibility by
2016.
On top of this, central banks con-
tinue to be net buyers of gold, some-
Fundamentals
remain for gold to
resume its bull run
TUESDAY 24 APRIL 2012
26
MANAGEMENT WEALTH TRADING
cityam.com
Uncertainty could drive the price to new highs, says Craig Drake
With the US
balance sheet more
than doubling, it is
not gold and other
commodities that are
expensive but cash
that is cheap

T
HE news of the French election,
with the Socialist candidate
creeping ahead of incumbent
president Nicholas Sarkozy, had
the predictable effect of unsettling
the FTSE yesterday morning. Although
yesterdays falls have only taken it back to
the levels seen around a week ago, it is
beginning to seem as if a combination of
Eurozone, China and US worries are
conspiring to take the index lower from
here.
In the French election, Sarkozy looks
to have a difficult task ahead in
order to retain power. Markets are
understandably worried about
what might happen if Francois
Hollande does indeed secure the
lyse Palace, given that he has
pledged to re-open
negotiations on the EUs
fiscal compact. This move
would threaten to
overturn all the good
work done in the past
year on the Euro crisis,
and would certainly
provoke a major row
with Berlin.
However, one of
the interesting
features of the 2012
stock market rally has
been its resilience,
INSIGHT
DAVID JONES
OPTIMISTS HAVE THE UPPER
HAND DESPITE EURO FEARS
CHIEF MARKET STRATEGIST
IG IS DIFFERENT SEARCH IG MARKETS
tem to access the gold markets. It is
important to remember that spread
betting is not just about sitting in
front of a screen all day, buying and
selling dozens of times a day.
Spread betters can run a strategy for
weeks or months, often with both a
long and short term trading strate-
gy. And though gold is in a short-
term correction, by having both a
short and long term outlook to your
gold trades, you can benefit from
the almost inevitable monetary
expansion and market volatility
that could reignite the gold bull
run.
thing seen in 2011 for the first time
in 20 years. According to Adrian
Ash, head of research for
BullionVault, central bank purchas-
es have slowed from the frantic buy-
ing of last year on the back of a
sharp downturn in global FX
reserves growth. But the central
banks nevertheless remain in the
market for the yellow metal.
So what does this mean for spread
betters? Though the gold bull mar-
ket could be seen as an investment
story, Stuart Wheeler, the founder
of IG Index and the grandfather of
spread betting, developed the sys-
Central bank gold purchases
600 Tons
400
200
0
-200
-400
-600
-800
2002 2004 2005 2006 2007 2008 2009 2010 2011
Source: London Bullion Market Association, Thomson Reuters, World Gold Council
2003
A bullish dog on the gold market
EUR/USD WALL STREET GERMANY 30 GBP/USD US SPX 500
63%
SHORT
62%
SHORT
-0.7%
70%
LONG
83%
SHORT
75%
SHORT
-0.86% -2.93% -0.25% -0.93%
BARCLAYS
LLOYDS
BANKING
GROUP
ROYAL BANK
OF SCOTLAND
GROUP TESCO BP
-3.77%
91%
LONG
98%
LONG
98%
LONG
95%
LONG
95%
LONG
-2.33% -3.47% -1% -1.53%
59%
LONG
Clients trading this market also have positions on
Client sentiment on the FTSE 100
59% of IG clients with open positions in this
market expect the price to rise
41% of IG clients with open positions in this
market expect the price to fall
with indices going through periodic bouts
of weakness only to push higher again.
Our client sentiment indicator for the FTSE
100 currently shows that the optimists
have the upper hand, with sentiment
showing that clients are 59 per cent long.
Losses for the FTSE 100 at the beginning
of March saw a similar pattern, with clients
switching to being buyers of the FTSE 100
and calling the bounce fairly accurately.
Will this time round see similar prescience
from IG clients?
Another point of interest has been
the greater strength of US markets,
with the Dow and S&P 500 making
continued progress even when the
FTSE struggles. Here, by contrast,
clients are expecting greater
weakness, with data
showing that clients are
still short on the Dow and
S&P 500 by a significant
margin. Recent US data
has failed to match the
impressive start to the
year seen in the non-
farm payrolls reports,
which has led to a
voicing of concerns that
the US economy is slowing
down again. However, a
note of caution here, since
there are still those who
expect the Fed to ride to the
rescue with more QE in due
course.
Francois Hollande isnt worried
G
E
T
T
Y
T
here is about a 25 per cent
chance you suffer from allergic
rhinitis. If you do, the chances
are your body is currently pro-
ducing a surplus of antibody
immunoglobulin E. This IgE will be
busy binding to your mast cells,
tricking your body into releasing the
inflammatory mediator histamine.
In short, you suffer from hay fever
welcome to the pollen season.
Hay fever has become shorthand
for a variety of allergies, which
include types of pollen, dust and pol-
lution. Its symptoms range from
mild irritation of the eyes and nasal
cavity to hives, extreme drowsiness
and lack of concentration.
There are an estimated 15m suffer-
ers in the UK and this is expected to
double by 2030 as summers warm up
and a higher percentage of people live
in built-up areas with more pollution.
But understanding the science
behind it will give you scant consola-
tion when the inevitable itching
starts. Here is our guide to beating
the scourge of the summer.
TAKE YOUR MEDS
Anti-histamines, which prevent his-
tamines from bonding to their recep-
tors, should be at the top of your
shopping list (2.85 for seven tablets,
boots.com). Nasal sprays can reduce
the amount of pollen that enters the
body (Flixonase, 6.99, various
stores). Eye-drops can help to prevent
itchiness (Otrivine, 4.39, various
stores).
PLAN YOUR HOLIDAY CAREFULLY
Different regions experience differ-
ing durations and intensities of
pollen, so planning ahead can help
to ease your suffering. Dry places
tend to have less grass and therefore
lower pollen counts. If you feel the
effects badly you should probably
rule out hotspots like the south of
France and the French Riviera,
Florence, Naples, Rome and Athens.
Low-count areas include the Greek
islands, the Canary Islands and
North Africa.
INDULGE IN A HAIR OF THE DOG
Evidence over the use of honey to
treat hay fever is anecdotal but
some people swear by it. The theory
is that by exposing your body to
small levels of pollen it can build up
a resistance to airborne pollen
and even if it doesnt work, you
have a tasty, healthy snack.
CHILL OUT
Hay fever symptoms have been
shown to be worse in people with
high stress levels. This is because the
body produces cortisone when
under stress, which heightens your
immune response to the allergen.
Getting a good nights sleep, eating
well and cutting down on alcohol
can all help.
GET YOUR HOUSE IN ORDER
Air conditioning and air purifiers
can help to reduce the pollen count.
G
E
T
T
Y
FIT IN
THE CITY
LAURA WILLIAMS
LIFE&STYLE
TUESDAY 24 APRIL 2012
27
cityam.com
HEALTH
EPISODE 54 FEEDING TIME AT THE ZOO
B
ut dad, its disgusting. It never
tastes like this when Maria makes
it.
You dont have to like it, you just
have to eat it.
I cant eat it. Its all slimy. Im going
to be sick. Noel slams his knife and fork
down on the kitchen table. He sits with
his arms crossed and a scowl plastered
across his face.
Noel, just think of it as one of your
five a day. Im trying to be clear,
consistent, fair but firm and without
resorting to either bribery or
intimidation. So far, its been a textbook
performance.
Ill die if I have to eat this. I raise my
hand to my mouth, stifling a laugh.
This is broccoli. With pasta. And
grated cheese on top. Im assured that it
CITY DAD
FITNESS & DIET EXPERT
Finished the London
Marathon? Get back
on top with our
guide to after-care
T
here will be plenty of sore limbs
around this weekend following the
London Marathon. But you neednt
just grin and bear the pain proper
post-run care can quicken your recovery
and help stave off injuries. I caught up
with top physio Shreena Patel to find her
top tips for getting back to full strength
after your gruelling 26-mile ordeal.
Post-marathon your immune system
will be depressed, leaving you vulnerable
to colds and other infections. Get a little
more sleep than you normally would for a
few days, and ensure your diet is well-
balanced with plenty of vitamin C.
Your level of pre-marathon fitness will
determine the degree of delayed onset
muscle soreness you will suffer. This is
caused by micro-trauma to the muscle
itself. There is some evidence to suggest
cooling the muscles can be of some
benefit. You could use a cold wet towel,
or an ice bath intermittently. It is
advisable not to run again until this
soreness has resolved.
The muscles that will be important to
stretch will be the gluteal muscle region,
hamstrings, quadriceps and calves. The
calf stretch must include a stretch with
the knee both extended and bent, in
order to stretch both muscles in the calf
region.
Hold these stretches for 30 seconds in
order to achieve the maximum carry-over.
Ideally, if youre returning to a desk-
based job, these stretches should be done
three to four times a day.
The ITB (band of connective tissue
that runs from hip to knee) can commonly
get over-worked during the marathon
itself the use of a foam roller on the
outer thigh region can be helpful, if a
little painful.
Running should only commence again
when the post exercise muscle soreness
has completely resolved. In the meantime
swimming or gentle cycling can be
helpful.
Follow me on Twitter @laurafitness or visit
bit.ly/yZ8ves
ranks amongst Noels Top Ten. But not
today, it seems. Im beginning to wish Id
gone back to the office after the meeting
with the lawyers to discuss Juliettes case
instead of sneaking home for 6.30pm.
Eat. It. Noel. I can feel that my
hitherto textbook performance is
beginning to slip away from me.
Emma and Maria enter the kitchen,
Gwennie and Harry in their arms. At the
very same moment, Noel distributes his
dinner across the kitchen with a
devastating flat backhand drive. For a
moment, we are all wide-eyed and
dumbstruck, apart from Harry who
gurgles happily in Marias arms.
Whats going on? asks Emma.
Noel pre-empts my own explanation by
turning to face his mother, his previously
determined face crumpling as he bursts
into tears and screams Daddy made me
eat it. And I couldnt. Its disgusting
mummy.
After three grim hours with the lawyers
discussing objectives and strategies, Im
just about strategised out. But Ive got a
distinct feeling that Im six to five against
in this situation.
Tired of the relentless itching of hay fever? Then follow our guide, by Steve Dinneen
MORNING UPDATE
Sign up to
our 10:30am
newsletter at
cityam.com
TRISHNA is that rare thing: a rustic-
chic restaurant serving top-dollar
Indian cuisine. Elsewhere in London,
posh Indians are in over-sleek rooms
without windows and rustic is the
very last word youd apply to them.
At the other end of the spectrum, of
course, you have the eating halls of
Commercial Road or the dives of
Brick Lane. Trishna makes a nice
change.
The cosy design of the place seems
to make families feel welcome. At
Trishna, my parents and I felt right
at home among family groups with
children of all ages. There were also
young, well-heeled local couples hav-
ing a romantic Friday night date.
Trishna specialises in south-west
Indian food and is sister to the
award-winning seafood restaurant
Trishna in Mumbai. It is not brand
new, but chef Karam Sethi also the
Hot stuff: Trishna is
great for date night
but mind the spice
owner has only been at the helm for
a year.
There is a varied a la carte choice
but we went for the tasting menu,
moving through shellfish to fish and
then to rich meat, with all the lovely
side dishes of lentils, rice and naan
that youd hope for.
Sethis sister, Sunaina, is the som-
melier and she impressed us with
clever, interesting choices a
Brazilian white was particularly good
with the bolshy flavours of the food.
Now, I like spice as much as the next
biryani lover, but for my money, Sethi
needs to tone down the heat and let
the ingredients peep out more.
Indian food is built around strong
flavours, but with cuisine of these
ambitions, a more moderate
approach would have been better. Too
often the coatings and marinades
railroaded over the delicate seafood
or meat they accompanied. Koliwada
fried lobster and shrimp with carom
seed, garlic and chutney, tasted most-
ly of batter and spice a real shame
while Aylesbury duck seekh kebab
distinguishable from lamb kebab by
its lighter colour and silkier texture
was utterly overpowered by a generic
hot meaty flavour, albeit one of com-
plex composition. And Dorset brown
crab with garlic pepper and butter
was just too much: too rich, too but-
Vivek Singh goes to
Soho with Cinnamon
VIVEK Singh is one of Londons
most serious restaurateurs: The
Cinnamon Club in Westminster was
the first of its type: a deeply elegant,
quirky dining room and food to
match. The Cinnamon Kitchen
followed: a less characterful but still
very good restaurant in the City.
And now theres Cinnamon Soho,
because who can stay out of Soho
these days?
The dining room isnt strictly
to my taste: its like Singh wants
in on some of that Soho buzz but
has missed the aesthetic, which is
small, shabby-chic, cramped and
full of natural materials.
Cinnamon Soho is somewhere
between flashy and functional
it could be any number of bars
offering happy hour cocktails.
But the food was, in our
humble books, really rather
scrumptious and always fun.
First, you could be tempted by
the selection of balls, written as
All Balls! on the menu, which is a
bit odd, especially as the
exclamation mark looked like an
i. Ballsi? I asked my friends.
Whats that? Theyre crab cakes,
potato bandas, beef kebab and
even a bangla-scotch egg
probably a good way to start.
Instead, we chose a warm,
piquant plate of glistening roast
aubergine chutney and carom
seed mathri (little crackers) and
some of the best chicken Ive had
in recent memory in the form of
the tandoori chicken and chilli
Delhi sandwich (bread-free).
Tandoori salmon with green pea
relish was well-balanced and
refreshing we nearly resorted to
aggressive use of handbags in our
haste to get the three dishes down us.
For mains, the stars are smoked
saddle of Cumbrian lamb with
spiced onion sauce and Old Delhi-
style tandoori fenugreek chicken,
but Id heard bad things about
these (too bland in the first
instance, too dry in the second).
Instead, I went for Keralan
seafood pie (theres a list of pies,
including Roganjosh shepherds
pie) and found it utterly delicious,
a bit like a massive vol au vent
overspilling with prawns and fish
in an unctuous, aromatic sauce.
Tandoori king prawns with curry
sauce were big and powerful,
though it was a small serving for
the price tag (17). Vegetable
tehari, intended to
counterbalance our rich tastes,
was a slightly dry and
unremarkable bowl of rice and
veg. Dont bother. Do, however,
bother with black lentils theyre
a creamy slop containing some of
the best, most robust flavours of
the menu.
Desserts are not good (yet,
anyway): a chocolate cake with
cumin tasted curiously of meat,
though it looked fabulous; a
carrot halwa meant well but
only tasted sickly, and a serving of
saffron ice cream was remarkable
mostly for its neon yellow hue.So
save yourself the calories
and stay in the heart of the menu:
get in the pies, a Delhi sandwich
and maybe some Balls! and youve
got a good reason to seek Singh
out in Soho.
ZS
The bland interior of Cinnamon Soho does its good food down.
An ambitious, friendly Indian that needs to reign in the heat
TUESDAY 24 APRIL 2012
28
cityam.com
LIFE&STYLE FOOD & DRINK
RESTAURANT
CINNAMON SOHO
5 Kingly Street, W1B 5PF
FOOD hhhii
SERVICE hhhhi
ATMOSPHERE hhhii
Cost per person without wine: 40
tery and too slurry-like the crab
needed to be allowed to sing more
and retain more of its texture.
Elsewhere, though, the menu
delighted and I was glad, since
Trishna has good vibes and should do
itself proud. Hariyali bream with
mint, coriander and tomato kachum-
ber was a sensuous, smoky take on
the white fish; guinea fowl tikka
with fennel seed was just the ticket;
star anise and masoor lentils were
completely moreish, nutty and fra-
grant, and lamb though we barely
had space for it was superb.
Indian puddings (at least in UK
restaurants) are notorious, but the
gulab jamun with cardamom and ice
cream is an aromatic, satisfying
treat.
Overall, the brother and sister team
operating Trishna do a good job:
theyre friendly, knowledgeable and
talented, and the dining room excud-
es bonhomie. If the excessive flavour-
ing of the tasting menus most
ambitious dishes can be tempered,
itll be great.
Perhaps the solution, for now, is to
stick to the classics: lamb, chicken
and white fish. These seem to be
Trishnas strengths and youll be in
for a treat. Oh, and dont forget the
wine: Ms Sethi knows what shes talk-
ing about. Zoe Strimpel
RESTAURANT
TRISHNA
15-17 Blandford Street, W1U 3DG
FOOD hhhii
SERVICE hhhhh
ATMOSPHERE hhhhi
Cost per person without wine: 45
Trishna serves south-west Indian food in a rustic chic dining room.
29
TV & GAMES
cityam.com
T
E
R
R
E
S
T
R
I
A
L
BBC1
SKY SPORTS 1
2.55pmLive Test Cricket 10pm
School of Hard Knocks 11pm
Sporting Greats 11.30pmA League
of Their Own 12.30amUEFA
Champions League Highlights
1.30amSchool of Hard Knocks
2.30amSporting Greats 3am
Footballs Greatest Managers
3.30amUEFA Champions League
Highlights 4.30amRevista De La
Liga 5.30am-6amFootball Asia
SKY SPORTS 2
7pmLive UEFA Champions League
10.15pmRevista De La Liga
11.15pmFootball Special 12.15am
British Basketball 2.15amGreat
Run Series 2.45am-3.15am
Football Asia
SKY SPORTS 3
7pmBritish Basketball 9pmVolvo
Ocean Race 9.30pmSporting
Greats 10pmSports Unlimited
11pmVolvo Ocean Race 11.30pm
Golf 12.30amGolfing World
1.30amLPGA Tour Golf
3am-3.30amVolvo Ocean Race
BRITISH EUROSPORT
5.30pmLive WTA Tennis 7.15pm
Live Snooker: The World
Championship 10pmBoxing
10.35pmCycling
12.05am-12.30amPorsche Super
Cup
ESPN
7pmFA WSL Review Show
7.30pmRussian Premier League
Review8pmAmerican Le Mans
Series 9pmFIA GT1 World
Championship Review10pmESPN
Kicks: Premier League 10.15pm
ESPN Kicks: Scottish Premier
League 10.30pmEredivisie Review
Show11.30pmPress Pass 2012
12amThe Ultimate Fighter 1am
Live NBA Basketball 3.30am
Planet Speed 4amESPN Game of
the Week 4.30amAustralian
Football International 2012
5.30am-8.30amLive Australian
Rules Football
SKY LIVING
7pmCriminal Minds 8pmThe
Biggest Loser USA 9pm
Unforgettable 10pmCriminal
Minds 11pmBones 12amMedium
1amMaury 2.40amBones 3.30am
Nothing to Declare 4.20am
Americas Next Top Model
5.10am-6amJerry Springer
BBC THREE
7pmPops Greatest Dance Crazes
7.30pmThe Voice UK 9pmBritain
Unzipped 10pmEastEnders
10.30pmRussell Howards Good
News 11pmFamily Guy 11.45pm
American Dad! 12.30amBritain
Unzipped 1.30amRussell Howards
Good News 2amI Woke Up Gay
2.55amPops Greatest Dance
Crazes 3.25amStop My Stutter
4.25am-5.25amOur Crime
E4
7pmHollyoaks 7.35pmHow I Met
Your Mother 8pmDavid Blaine:
What Is Magic? 9pm90210 10pm
The Cleveland Show10.30pm
Napoleon Dynamite 10.55pmThe
Ricky Gervais Show11.30pmThe
Big Bang Theory 12.25amScrubs
1.20amHow I Met Your Mother
1.50amDavid Blaine: What Is
Magic? 2.35amComedy Lab: Mr &
Mrs Hotty Hott Hot Show3.05am
Rules of Engagement 3.30am
Greek 4.10amMade in Chelsea
5.05am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmCash Cowboys 9pm
Storage Wars 10pmNo County for
Old Men 11pmCash Cowboys
12amStorage Wars 12.30am
Pawn Stars 1amNo County for Old
Men 2amCash Cowboys 3am
America: The Story of the US 4am
Heir Hunters 5am-6amAncient
Discoveries
DISCOVERY
7pmBear Grylls 8pmCruise Ship
Disaster: Inside the Concordia 9pm
Wheeler Dealers 10pmDeadliest
Catch 11pmLicence to Drill 12am
Bear Grylls 1amWheeler Dealers
2amDeadliest Catch 3.50amIce
Pilots 4.40amWheeler Dealers: On
the Road 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny 8pm19 Kids and
Counting 9pmMystery Diagnosis
10pmUntold Stories of the ER
11pmHoarding: Buried Alive 12am
Mystery Diagnosis 1amUntold
Stories of the ER 2amHoarding:
Buried Alive 3amSupernanny 4am
A Baby Story 5am-6amBaby Tales
SKY1
7pmThe Simpsons 8pmTouch
9pmFILMThe Italian Job 2003.
11.10pmCop Squad 12.10amRoad
Wars 1.10amAirline 2amNight
Cops 2.50amDanny Dyers
Deadliest Men: Living Dangerously
3.40amSafebreakers 4.35am
Customs UK 5.05am-6amOops TV
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
6pmBBC News 6.30pmBBC
London News 6.55pmParty
Election Broadcast 7pmThe One
Show7.30pmEastEnders; BBC
News 8pmHolby City 9pmThe
Syndicate: Bob says goodbye to
those he loves. Last in the series.
10pmBBC News 10.25pm
Regional News; National Lottery
Update 10.35pmThe Matt Lucas
Awards 11.10pmKevin Bridges:
Whats the Story? 11.40pmThe
Estate 12.10amFILMBelow 2002.
1.50amWeatherview1.55amSign
Zone: The Apprentice 2.55amSign
Zone: Horizon: Solar Storms The
Threat to Planet Earth 3.55amSign
Zone: Britains First Photo Album
4.25am-6amBBC News
6pmEggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pmAntiques Road Trip
7.30pmGreat British Menu
8pmThe Hairy Bikers
Bakeation: The duo bake their
way through France.
9pmMeet the Romans with
Mary Beard
10pmLater Live with Jools
Holland
10.30pmNewsnight; Weather
11.20pmSnooker: The World
Championship
12.10amSnooker Extra
2.10amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.25pmParty Election
Broadcast
6.30pmITV News
7pmEmmerdale
7.30pmCountrywise Kitchen
8pmWho Wants to Be a
Millionaire? Celebrity
9pmCHOICE The Mighty
Mississippi with Trevor
McDonald
10pmITV News at Ten 10.30pm
London News 10.35pmThe Battle
for London The Mayoral Debate
11.45pmThe Unforgettable Terry
Scott 12.10amThe Zone; ITV News
Headlines 3amCrossing Jordan
3.45am-5.30amITV Nightscreen
6pmThe Simpsons 6.30pmHollyoaks
7pmChannel 4 News 7.55pm
4thought.tv 8pmSupersize vs
Superskinny 9pmCHOICE Hidden
Talent 10pmFacejacker 10.30pmHit
the Road Jack 11.05pmRandom Acts
11.10pmDesperate Housewives
12.10amPoker 1.10amKOTV Boxing
Weekly 1.35amSailing: Americas Cup
Uncovered 2.05amFIM World
Superbikes 2.30amJonnie Peacock
Speed 2.35amBritish GT 3.05am
The Grid 3.30amLee Pearson The
Colour Gold 3.35amFreesports on 4
4.05amBrief Encounters of the
Sporting Mind: Body Building
4.10amRoad to London 2012:
Paralympics Extra: A preview of this
summers Games. 5.05amLiz Johnson
Into the Blue 5.10am-6.10amFull
Metal Challenge
6pmHome and Away
6.30pm5 News at 6.30
7pmEddie Stobart: Trucks and
Trailers; 5 News Update
8pmRory McGraths Pub Dig;
5 News at 9
9pmCHOICE CSI: Crime
Scene Investigation
10pmCSI: NY
10.55pmCSI: Miami
11.50pmCSI: Crime Scene
Investigation
12.50amSuperCasino
4.05amRough Guide to Cities
4.15amMichaelas Wild Challenge
5.05amGreat Artists 5.35am-6am
Great Artists
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
digits1-9 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
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
WORDWHEEL
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
1 2 3 4 5 6
7 8 9
10
11 12 13 14
15 16 17 18 19
20
21 22
23 24
26 21
13 12
14 32
10 16 12
21
14 22
22
19 15 17
16 4
27 18
20 20
9
6
6
38
24
9
5
28
12
30
20
13
18
21
22
3
11
7
17
29
37
11
11
4
ACROSS
1 Lives in a tent (5)
4 Emergence of a baby
from the womb (5)
7 Form a queue (4,2)
9 Section of glass (4)
10 Cipher (4)
11 Uses jointly (6)
13 Lob, pitch (4)
15 Fruiting spikes of
cereal plants (4)
17 Division of Ireland (6)
20 Ms Amos, songstress
whose albums include
The Beekeeper (4)
21 Hindu meditation and
relaxation method (4)
22 Appear (6)
23 Insurgent (5)
24 Present time
or age (5)
DOWN
1 Keyboard
instrument (7)
2 Organisation
for people with
high IQs (5)
3 Condiment (5)
5 Driving force (7)
6 Prongs of a fork (5)
8 Arrangement
of the body and
its limbs (7)
12 Say again,
repeat (7)
14 Witchcraft (7)
16 Positively charged
electrode (5)
18 Boundary (5)
19 Exhausted (5)
I
T
A
N
E Y
R
B
G

4



4
M C B D R A W L
A L A M O D E U I
N M B L R K
G U E S S T I M A T E
O H I O N
C E A S E F I R E
B D I S B
A L T E R N A T I V E
D I O F R R
G D S P E C I F Y
E N E M Y W S L
1 6 4 9 8 2 8
4 8 5 2 7 1 6 3 9
9 6 3 8 5 7 4
2 7 1 6 9 6 8
1 3 2 5 2 4 1 3
3 9 1 3
9 1 4 8 6 8 7 9
5 2 1 8 5 4 2
5 6 9 7 3 8 1
6 3 5 8 9 1 4 2 7
9 7 1 4 2 3 1
4
4
4
4
4
4
4
4
4
The nine-letter word was
GREYHOUND
T
E
R
R
E
S
T
R
I
A
L
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
TUESDAY 24 APRIL 2012
THE MIGHTY MISSISSIPPI WITH
TREVOR MCDONALD ITV1, 9PM
The broadcaster spends Independence
Day in St Louis, Missouri and steers a
paddle steamer in author Mark Twains
home town.
HIDDEN TALENT
CHANNEL4, 9PM
New series. Richard Bacon follows
members of the public who scientists
believe could have extraordinary
abilities they were never aware of.
CSI: CRIME SCENE
INVESTIGATION CHANNEL5, 9PM
A human brain is found at the scene of
a car crash and the CSI investigators
are surprised to discover it does not
belong to any of the three victims.
TVPICK
CHELSEA manager Roberto di Matteo
insists his side are good enough to
win the Champions League as they
prepare for 90 minutes that could
define their season in Barcelona
tonight.
A gutsy 1-0 win in last weeks
semi-final first leg has given
the Blues an outstanding
chance of pulling off a
major upset and pipping
the holders to a place in
next months Munich
showpiece.
Barca, with the unique
threat of 63-goal star Lionel
Messi, remain odds-on
favourites to overturn the deficit
and reach the final, but Di Matteo is
optimistic of progressing and making
Chelsea history.
We do have the qualities within
this team, said the Italian, who is
adamant he will not set his team out
to achieve a goalless draw. I think we
need away from home, as weve seen
in the past, a bit of luck to be able to
do well in a competition like this. But,
certainly, the quality and the squad
we have at Chelsea is very good.
Striker Didier Drogba, whose goal
decided last weeks clash in west
London, is expected to shake off a
knee niggle to start at Camp Nou,
where Di Matteo believes his side will
need to breach Barca again.
I do think well have to try and
score a goal, added the former
Chelsea midfielder, who has won 10
and drawn three of 14 games
since taking temporary
charge. That would give
us a greater chance. I
think itll be difficult just
playing for a goalless
draw.
Di Matteo maintains
he will not pick his
team until today
and empha-
sised he would
readily risk
players one
b o o k i n g
away from a ban in the hope of end-
ing Barcas quest to become the first
to retain the Champions League.
I dont think we can be thinking
about that in the game tomorrow, he
said. The players will be playing fully
focused on their task and their
responsibilities in the game. We
cannot speculate on the
bookings.
Chelsea won plaudits
more for their resolve
than artistry in the first
leg, but Di Matteo
defended his pragmatic
approach against a team
who have scored 168
goals and won three tro-
phies already this term.
You have to utilise the
strengths of your players, and see
what the weakness of the opposition
is, he said. I respect other peoples
opinion, but I disagree.
Barca manager Pep Guardiola
insisted Messi would be fit despite
missing training on Sunday and
robustly rejected suggestions his
team would struggle to cope with a
third pivotal match in seven days.
Leo had a gastric issue, the doctor
saw him and he called us before the
training session to say he wouldnt be
coming in, but now hes okay, said
Guardiola, whose men lost to arch-
rivals Real Madrid on Saturday.
Tomorrow theres no tiredness in
the legs. Maybe in the mind, but, in
the semi-final of a Champions
League, no matter if we play three
days ago or yesterday, well be ready
to try to reach the final.
Tonights result has huge repercus-
sions not just for Di Matteos job, but
also for Chelseas hopes of playing in
this competition next season. They
lie sixth in the Premier League,
four points off a top-four spot.
It would be a catastrophe to
miss out on the Champions
League, said striker
Fernando Torres.
Drogba doesnt dive,
BARCELONAS Gerard Pique has
defended Didier Drogba from
accusations the Chelsea striker is a
diver ahead of this evenings crucial
Champions League semi-final.
Pique, who left Manchester
United to become one of Barca
manager Pep Guardiolas first
signings, was an unused substitute
for Chelseas 1-0 victory in the first
leg and said he believes Drogbas
repeated tumbles were genuine,
despite the Ivory Coast
internationals prior reputation
and criticism from Barca captain
Carles Puyol.
I dont think that, when Drogba
went down, he was trying to act or
dive, Pique said. If not well start
to talk about football not having
fair play and being all about cheats.
Football is not like that. We have to
keep all the good things, and diving
and cheating is not good. If he
keeps doing that, you might end up
thinking thats the case. But I
believe in his honesty.
Pique has missed Barcas last five
matches but may be recalled after
consecutive defeats to Chelsea and
Huh comeback
proves rookies
one to watch
E
NGLANDS own Lee Westwood
enjoyed his first win of the
season and former Open
champion Ben Curtis ended a
six-year barren streak, but the player
who really caught my eye at the
weekend was rookie John Huh.
The 21-year-old American was
nine over par after eight holes of his
first round at the Valero Texas Open
but recovered spectacularly and
ended up missing a play-off by just
two shots and then only after
winner Curtis birdied the last.
It was a fantastic performance
from Huh, who came through tour
school and captured the attention
in February when he won the
Mayakoba Classic. He is definitely a
name to look out for in the future.
Congratulations to Curtis,
however, who won for the first time
since 2006. The 2003 Open
champion has lost his way a little
and did not look full of confidence
but he won so deserves the credit.
Westwood also tasted victory, at
the Indonesia Masters, where he
continued his good recent form by
earning his first win of the season.
Its perhaps not the biggest
tournament nor the toughest field,
but a win is a win. For the world
No3 to go back and defend that title
is admirable in itself; to go back and
win again is excellent.
Westwood faded a little at the
end, having had to play most of his
third round on the final day owing
to bad weather on Saturday. That
scenario can work both ways. A lot
of the time youll come off the 18th
green and wish you could get back
on the first tee, because youre
settled into your round. On the
other hand, 14 extra holes is a little
tiring, although it shouldnt trouble
someone as fit as Lee.
Finally, mobile phones are to be
allowed at the Open again. I dont
have a huge problem with them if
they are on silent but, having said
that, if I was on the main tour and
contending for Majors I wouldnt
want them on the golf course.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer and media
commentator. Follow him on Twitter
@torrancesam
168
Number of goals
scored by Barca
this season
GOLF
COMMENT
SAM TORRANCE
Di Matteo vows to pinch away goal as
Drogba and Messi fight to prove fitness
THE man accused of disrupting the
University Boat Race by swimming in
the River Thames has been
prohibited from being within 100m
of Londons Olympic torch route.
Trenton Oldfield, 35, of
Whitechapel, east London, was
summoned to Feltham Magistrates
Court and charged under the Public
Order Act after interrupting the 7
April race by swimming in the path
of the competing Oxford and
Cambridge boats. Though released
Boat-race rebel banned from
attending Ol ympic torch relay
on bail, Oldfield is restricted from
entering the City of Westminster on
9 May, the state opening of
Parliament, and the Royal Borough
of Windsor and Maidenhead before
his Isleworth Crown Court
appearance on 28 May, a period in
which several borough events are
planned to mark the Queens
Diamond Jubilee.
The torch relay, which Oldfield is
also restricted from, enters London
via Greenwich on 21 July before
concluding at the Olympic Stadium
six days later to signal the official
start of London 2012.
TUESDAY 24 APRIL 2012
30
SPORT
cityam.com/sport
BY FRANK DALLERES
BY DECLAN WARRINGTON
RED Bull driver Mark Webber has
admitted his relief at leaving
Bahrain following civil unrest in the
Gulf state surrounding the
weekends Grand Prix.
Webber finished fourth behind
team-mate and winner Sebastian
Vettel on Sunday but said he was
pleased he could depart after
security concerns and political
controversy surrounded the event.
The 2011 race was cancelled after
distressing anti-government protests.
Webber glad to leave Bahrain
following troubled Grand Prix
Im looking forward to getting on
a plane, said Webber. Its time to go
back to Europe. Yeah, I am pleased
the weekend is over. There should be
no real celebrations. We can leave.
We saw the size of the crowd.
World champion Vettel, who leads
the drivers standings with Britains
Lewis Hamilton second, added the
difficulties made it tough to
concentrate on the race.
It is not easy, he said. You try to
focus on the race, the car and
whatever problems you might face.
Hopefully well have a good pack-up
now and get back home safely.
BY DECLAN WARRINGTON
BY DECLAN WARRINGTON
Di Matteo disagrees with
critics of his teams style
Huh won the Mayakoba Classic in February
We can be Euro champs,
31
IN BRIEF
Trescothick set for ankle surgery
nCRICKET: Somerset captain Marcus
Trescothick has been ruled out for at
least six weeks after he was told he
needs surgery on an ankle injury. The
former England opener suffered a
recurrence of the problem in the
County Championship match against
Nottinghamshire on Friday.
Hallissey awarded team GB place
n OLYMPICS: London Marathon star
Claire Hallissey has been rewarded for
her personal best performance with a
place in the Team GB squad for
London 2012. Hallissey, 29, who
finished 11th in the womens race, is
preferred to Jo Pavey.
insists Barca defender Pique
rivals Real Madrid and, as
preparation for the possibility,
has consulted former team-mate
Rio Ferdinand on how to
approach playing Drogba.
Rio sent me a text message
and wanted to talk to me, he
said. Maybe thats what he
wants to talk about we could
talk about Drogba. Hes one of
the best forwards Ive ever seen.
Itll be a very hard duel if Im in
the starting XI.
Intriguingly, for a side widely
praised as club footballs best-
ever, Pique also believes he and
his team-mates deserve greater
credit for their success, even
if defeat tonight to
Chelsea realistically
leaves them with
only the Copa del
Rey to target.
A team that has
won 13 trophies in
three-and-a-half
years deserves more
credit, he said. Other
teams need to win more
championships before we
start talking like that. We
deserve respect.
Barca forward Alexis Sanchez
is expected to be available
after scoring as a
substitute against Real
on Saturday so,
following the recovery
from a knee ligament
injury of Holland
international Ibrahim
Afellay and excluding
long-term absentees
David Villa (broken leg)
and Eric Abidal (liver
transplant), Guardiola has a
fully-fit squad from which to
choose.
6
Barcelona have
won six of 12
previous European
Cup semi-finals
WEST Ham kept alive their hopes of
automatic promotion to the Premier
League after beating Leicester to
close to within two points of second-
placed Southampton.
Striker Jermaine Beckford
headed the Foxes in front
just after the half-hour
mark but defender Winston
Reid equalised just five
minutes later with a
neat finish from
inside the six-yard
box, and midfielder
Jack Collison scored
an impressive 58th-
Theres no tiredness in the legs. Maybe in
the mind, but well be ready to reach the final

cityam.com
TUESDAY 24 APRIL 2012
Leicester victory keeps West Ham
in contention for top-two finish
City A.M. has secured the last pair of tickets
to this unique event for the very special
price of 3,000 + Vat. Play in the exclusive
Aberdeen Asset Management Ladies
Scottish Open Pro Amat the world class
Archerfeld Links, Edinburgh from Thursday
3rd Saturday 5th May 2012.
Leading Ladies European Tour Professionals
will be partnered with amateurs for the
Thursday & Friday with the top 15 amateurs
qualifying through to the fnal round.
We look forward to welcoming you to the
Aberdeen Asset Management Ladies Scottish Open Pro-Am 2012!
www.ladiesscottishopen.com
3rd 5th May 2012
ABERDEEN ASSET MANAGEMENT
LADIES SCOTTISH OPEN
Pro-Am Package includes:
Two return fights on BA Cityfyer from
London City to Edinburgh
Audi transfer to and from Edinburgh
airport
Two exclusive amateur places in the
Aberdeen Asset Management Ladies
Scottish Open Pro-Am(Thursday 3rd
& Friday 4th May)
Local Accommodation
VIP ticket to the Tournament Welcome
Reception on Wednesday 2nd May
VIP hospitality pass to the Tournament
hospitality facility in the Archerfeld
Clubhouse
Exclusive Aberdeen Asset Management
Ladies Scottish Open Pro-Amgift bag
To register
your interest please email:
Sophia.tabiowo@wsmcommunications.com
or telephone:
0207 183 4621
Results
EGFN<I:?8DG@FEJ?@G
C\`Z\jk\i%%%%%%%%%%%%%%%%( ( N\jk?Xd%%%%%%%%%%% ( )
G N ; C = 8 >; Gkj
I\X[`e^%%%%%%%%%%%%%%%% +, ). / (' -0 *0 *' /0
Jflk_Xdgke%%%%%% +, ), (' (' /( +- *, /,
N\jk ?Xd%%%%%%%%%% +, )* (+ / .0 +. *) /*
9cXZbgffc %%%%%%%%%%%% +, )' (+ (( .. ,. )' .+
9`id`e^_d%%%%%%%%% +, (0 (- (' .- ,( ), .*
:Xi[`]] %%%%%%%%%%%%%%%%%% +, (/ (/ 0 -+ ,) () .)
D`[[c\jYif%%%%%%%% +, (/ (- (( ,( +0 ) .'
?lcc %%%%%%%%%%%%%%%%%%%%%%%%% +, (0 (( (, +- +) + -/
9i`^_kfe%%%%%%%%%%%%%% +, (. (+ (+ ,) ,) ' -,
C\`Z\jk\i%%%%%%%%%%%%%% +, (. () (- -+ ,+ (' -*
;\iYp %%%%%%%%%%%%%%%%%%%% +, (/ 0 (/ +0 ,. $/ -*
9liec\p%%%%%%%%%%%%%%%%% +, (. (' (/ -' ,. * -(
C\\[j%%%%%%%%%%%%%%%%%%%%% +, (. (' (/ -+ -- $) -(
NXk]fi[%%%%%%%%%%%%%%% +, (, (- (+ ,+ -* $0 -(
@gjn`Z_%%%%%%%%%%%%%%%% +, (- (' (0 -- ., $0 ,/
D`ccnXcc %%%%%%%%%%%%%%%% +, (, (( (0 ,* ,, $) ,-
:ipjkXc GXc%%%%%%%%%% +, (* (. (, +, +0 $+ ,-
G\k\iYfif %%%%%%%%%% +, (* (' )) -- .- $(' +0
9i`jkfc :`kp%%%%%%%%% +, () () )( +* -. $)+ +/
Efkkd=fi%%%%%%%%%%% +, (* / )+ +- -* $(. +.
9Xiejc\p%%%%%%%%%%%%%%% +, (* / )+ +0 .+ $), +.
Gfikjdflk_%%%%%%% +, (* (( )( ,' ,. $. +'
:fm\ekip%%%%%%%%%%%%%% +, 0 (* )* +( -( $)' +'
;feZXjk\i%%%%%%%%%%% +, / () ), +( .. $*- *-
:I@:B<K
N\jk @e[`\jm8ljkiXc`X
IFJ<8L1 8ljkiXc`X _Xm\ jZfi\[ )() ]fi j\m\e n`Zb\kj
X^X`ejk N\jk @e[`\j
8LJKI8C@81 =`ijk @eej
< :fnXe cYnIXdgXlc %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(
; NXie\i Z Gfn\cc Y J_`cc`e^]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ,'
J NXkjfe Z ;\feXi`e\ Y JXddp%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% +(
I Gfek`e^ Z JXddp Y J_`cc`e^]fi[ %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)*
D:cXib\ Z 9XiXk_ Y J_`cc`e^]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)+
D?ljj\p Z JXddp Y J_`cc`e^]fi[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ('
DNX[\ efk flk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%))
I ?Xii`j Z 9Xl^_ Y IfXZ_%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% +
DJkXiZ efk flk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)+
9+ cY- n( eY)%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (*
KfkXc . nbkj%# 0' fm\ij%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% )()
9fnc`e^1 IfXZ_ (-$,$+*$(# IXdgXlc (/$,$++$(# JXddp
(0$.$*)$(# J_`cc`e^]fi[ *+$/$..$+# ;\feXi`e\ *$'$-$'%
KF;8PJ;@8IP
L<=8:_Xdg`fejC\X^l\J\d`$]`eXc)e[C\^
9XiZ\cfeX' m :_\cj\X( .%+, %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
9XiZcXpjGi\d`\iC\X^l\
8jkfeM`ccXm 9fckfe.%+, %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Collison scored the winner
in the 58th minute
Reading 45 27 8 10 69 39 89
Southampton 45 25 10 10 81 46 85
West Ham 45 23 14 8 79 47 83
TOP THREE
TEAM PLD W D L F A PTS
LEICESTER CITY...........................1
WEST HAM UNITED....................2
BY DECLAN WARRINGTON
CHAMPIONSHIP
Barca boss Guardiola dismisses fears over his teams hectic schedule
Chelsea goalkeeper
Petr Cech is likely
to face a barrage
from a Barca team
who have scored
168 goals this term
minute winner with a powerful low
drive beyond goalkeeper Kasper
Schmeichel.
Manager Sam Allardyce said
afterwards that he was pleased with
the win and that the result puts
pressure on Southampton.
I think it was a deserved victory,
he said. It should have been by more
but we squandered too many simple
chances, which left us a little nervous
towards the end. Well have to do our
job on Saturday and hope that
Coventry can do a little bit at
Southampton.
West Ham must beat Hull on
Saturday and hope that Southampton
fail to defeat Coventry to stand any
chance of a top-two finish.
says Chelseaboss
ProSreads Iimiled, incororaled in Cibrallar, is a arl oI lhe grou oI comanies conlrolled by Iondon Cailal Crou Holdings lc, regislered number: o497744, regislered address: 2nd oor, 6 evonshire Square, Iondon, EC2M 4AE. ProSreads Iimiled
is a comany regislered in Cibrallar under regislered number 9136S. Begislered address: 2/3b Horse Earrack Iane, Cibrallar. ProSreads Iimiled is licensed as a gaming comany by lhe Covernmenl oI Cibrallar and regulaled by lhe Cibrallar Cambling
Commissioner (Caming Iicence o.2S) and aulhorised and regulaled by lhe Financial Services Commission.
Spread betting carries a high risk to your capital, can be very volatile and prices may move rapidly against you. Only speculate with money you
can afford to lose as you may lose more than your original deposit and be required to make further payments. Spread betting may not be suitable
for all customers, so ensure you fully understand the risks involved and seek independent advice if necessary.
Are you
spread betting
without
direct market
access?
If youre a serious trader, you already
know the importance of execution speed
and tight spreads.
But unless you are spread betting
with direct market access, you are never
spread betting directly on the market price,
just within an articial market created by
your betting platform.
Thats why more and more serious
traders are moving up to ProSpreads.
We are the nancial spread betting
platform that gives you direct access to
the underlying market price.
This means that our clients always
get true price transparency, vital speed
of execution, extremely tight spreads,
and are never re-quoted.
With ProSpreads you are effectively
trading on the underlying market price.
And to do so, you have access to
highly sophisticated spread betting technology,
comparable to bank trading technology.
If youre a serious trader, and you
would like to nd out more about how direct
market access can improve your spread
betting experience, call us on 0800 804 8772
or go to prospreads.com
ProSpreads. Financial spread
betting with direct market access.