Cityam 2012-03-08

Should nancial regulation intervene in the
portfolio choice of investors?

Francesca Cornelli, Professor of Finance
Masters in Finance (full-time and weekend formats available)
Meet us on campus at an information event and speak with alumni, students and admissions staff:
Q Monday 16 April, 19.00 Q Tuesday 08 May, 19.00
Visit www.london.edu/mif/ | Email mif@london.edu | Call +44 (0)20 7000 7514 Leading Financial Thinking

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Leading Financial
Thinking
FTSE 100 5,791.41 +25.61 DOW 12,837.48 +78.33 NASDAQ 2,935.69 +25.37 /$ 1.57 unc / 1.19 -0.01 /$ 1.32 +0.01
Greece set
to impose
writedown
MOST private sector bond holders are
expected to agree to swap their assets
into fewer, longer-term bills by
tonights deadline but Greece will
probably have to use new laws to force
the stubborn remainder to take losses.
The arrangement is part of Greeces
130bn (108.5bn) bailout which aims
to cut its debts from 160 per cent of
GDP now to 120.5 per cent by 2020.
Dozens of major banks belonging to
the Private Creditor Investment
Committee for Greece (PCIC) yesterday
agreed to the swap, with investments
totalling 124bn, or 60 per cent of the
206bn of bonds involved.
If bondholders accounting for 66
per cent, roughly 150bn, of the total
agree to the swap by todays 8pm GMT
deadline, the government can force
the others to take losses too, through
collective action clauses (CACs).
The government will not reach the
95 per cent it wanted to declare the
bond swap voluntary, but it will prob-
ably get over 75 per cent of bondhold-
ers to agree, said Raoul Ruparel, an
analyst at Open Europe.
This is the outcome everyone has
worked for six months to avoid for
such a small write-down, this deal rep-
resents a lot of wasted time and effort.
Eurozone finance ministers are
expected to hold a teleconference this
afternoon at which CACs will be dis-
cussed before Greece puts them into
force after markets close.
The bond swap is then expected to
be carried out over the weekend.
BY TIM WALLACE
EUROZONE
Tim Cooks firm sold 15.4m iPads in the final quarter of 2011.
APPLE launched its latest bid to extend
its dominance of the tablet computer
market last night as it revealed a next-
generation iPad and delivered a rally-
ing cry that the days of personal
computers are over.
We think the iPad is the poster
child of the postPC world, chief exec-
utive Tim Cook told the tech elite who
had gathered in San Francisco for the
launch. The momentum behind the
iPad has been incredible and has sur-
prised virtually everyone.
The long-awaited device was
unveiled last night and features a new
high definition screen, a faster proces-
sor and an improved camera.
High-end models will be compatible
with fast 4G mobile phone networks,
due to launch later this year in the UK,
allowing users to stream high defini-
tion video on the move.
The new iPad will launch in the UK
in just 10 days on Friday 16 March,
with a starting price of 399 for the
most basic model.
In an attempt to head off competi-
tion from rivals producing cheaper
tablets using Googles Android soft-
ware, the old iPad will remain on sale
at the reduced price of 329.
Cook shied away from using the
term iPad 3 in his presentation,
instead referring to it simply as the
new model.
BY JAMES WATERSON
TECHNOLOGY
www.cityam.com Issue 1,587 Thursday 8 March 2012 FREE

Michael Holt, an analyst at
Morningstar, said the announcement
was about evolution rather than radi-
cal change: They want you to think of
it as the iPad, not which model. Its an
interesting choice. People who are into
bragging rights would have liked to say
this is the iPad 3.
Fred Huet of Greenwich Consulting
added: While the hardware is notably
enhanced there are still some areas of
improvement that Apple needs to work
on in order to stay ahead of its
encroaching competitors.
The tablet market has boomed since
Apple introduced the first iPad in
April 2010. Although initially met with
scepticism, sales of the device have
exploded, with Apple boasting that it
sold 15.4m iPads in the last quarter.
Leading PC maker Hewlett-Packard
only sold 15.1m PCs in the same period.
Apple shares were up 0.2 per cent to
$530.85 in after-hours trading.
Certified Distribution
02/01/12 till 29/01/12 is 92,258
BUSINESS WITH PERSONALITY
ANALYSIS l Apple
US$
1 Mar 2 Mar 5 Mar 6 Mar 7 Mar
545
540
535
530
525
520
530.69
7 Mar
MEET THE BILLIONAIRES
FROM TELECOMS AND MINING
TYCOONS TO TV STARS P18
APPLE:NEW iPAD
WILL CRUSH PCs
News
2 CITYA.M. 8 MARCH 2012
Ratings execs
under attack
TOP credit ratings agency executives
faced a wave of criticism from MPs yes-
terday for the mistakes made by their
institutions before the financial crisis.
The industry was either incompe-
tent or its judgment affected by a con-
flict of interest, Tory MP David Ruffley
told directors from Moodys, Fitch,
Standard & Poors, as well as smaller
Canadian agency DBRS, at the
Treasury Select Committee.
Andrew Tyrie, Tory chairman of the
TSC, said MPs were unconvinced the
ratings agencies problems had been
tackled and pressed directors to make
a full apology to the millions of people
affected because of the enormity of
the blunders over poor quality assets.
Tory MP Jesse Norman claimed the
ratings process had been compro-
mised, saying: There was an enor-
mous profit stream... from taking
goodness knows what quality assets,
bundling them together into struc-
tured products and then asking you
guys to bless them.
Agencies say the scale of the crisis
couldnt have been predicted and
expressed regret. Dominic Crawley,
director at S&P, said: We like many
others... did not forsee the severity of
the downturn in asset values and in
the US economy. Fitch director Paul
Taylor said he absolutely apologises
over the structured products ratings.
BY PETER EDWARDS
FINANCIAL SERVICES
Mortgage time-bomb UKs top threat

SOME time-bombs can be defused. Not
this one. At some point in a year, in
two, or perhaps even in five the cost
of borrowing for consumers will climb
back to the sorts of levels we were
used to 15 years ago. Complacent bor-
rowers addicted to rock-bottom inter-
est rates and for whom an 8 per cent
mortgage is almost inconceivable
will be in for the rudest awakening of
their lives. The timings are unclear;
the direction of travel isnt. The Bank
of England, which will doubtless keep
base rates on hold today, has been des-
perately trying to keep money cheap,
but it only controls very short-term
interest rates.
Longer-term rates are determined
by powerful market and regulatory
forces that are largely independent of
the official base rate; and they are
already beginning to shoot up. Halifax
(part of Lloyds) will increase its stan-
dard variable rate from 3.5 to 3.99 per
cent on 1 May and the rate on two
other products from 3.4 to 3.89 per
cent. Royal Bank of Scotland has hiked
the rate for new and existing cus-
tomers on two products, including
one from NatWest, from 3.75 per cent
to 4 per cent. Santander has hiked the
rate for new borrowers on four prod-
ucts by 0.1 per cent. Bank of Ireland
yesterday announced a rise of 1.5
points to 4.49 per cent in two stages,
affecting 100,000 customers in Britain.
Around 850,000 existing borrowers
will be hit by Halifaxs move and
200,000 by RBS. Capital Economics cal-
culates that for the average mortgage
monthly payments at Halifax would
rise 30 per month on a repayment
basis and 45 per month on an inter-
est-only basis a hike of 3-14 per cent.
The good news is that the changes
announced so far will increase total
UK mortgage payments by only one
per cent. The bad news is that this is
just the beginning; far more people
are already struggling with their
mortgages than is usually understood
and other costs, such as petrol, are
also rocketing at the same time. So
why are borrowing costs rising? There
is no conspiracy but regulatory
changes are the main drivers, paradox-
ically given that politicians love easy
money yet have introduced changes
(some good, some silly) that will lead
to the opposite outcome. Mortgages
are never financed by money bor-
rowed at overnight rates from the
Bank of England. Rather, banks fund
their lending using wholesale money
(borrowed from other institutions)
and deposits; new rules incentivise
banks to focus on the latter. Both of
these sources of funding have become
dearer. It is hard for banks to quickly
build up deposits, so they have been
forced to offer higher rates excellent
news for long-suffering savers, but bad
for borrowers. Banks are now having
to offer up to two-three per cent more
than the Bank base rate (currently 0.5
per cent): before the crisis, savings
rates were usually lower than the base
rate. The other change is that banks
must now hold more than twice the
amount of capital against their loans
to protect themselves against defaults;
this is expensive and being passed on.
The securitisation market remains
sluggish, which means loans cant be
sold on, further adding to costs.
Borrowing costs need to normalise.
The bubble was caused by excessively
cheap money; we cant delay the nec-
essary readjustment forever. But the
pain will be almost unbearable for
those caught unaware. They need to
evaluate their debt levels, stress test
themselves for rate hikes and
deleverage as fast as possible.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
QUANTITATIVE easing (QE) has
pushed down bond yields, hitting
pension funds and pushing final
salary schemes deeper into the red,
two new studies have shown.
Deficits at FTSE350 firms rose
9bn in February to 92bn, accord-
ing to data published yesterday by
Mercer, as falling yields offset the
positive impact of rising equity
prices.
The National Association of
Pension Funds revealed today that
final salary schemes across the coun-
try have fallen 90bn deeper into
deficit since QE started in October,
forcing firms to divert money away
from jobs and investment and into
filling the hole.
Annuity rates on defined contri-
bution pensions have also fallen.
Those retiring with a pension pot
of 26,000 will now get 22 per cent
less in income than if they retired
four years ago, a fall of 440 per year.
BY TIMWALLACE
PENSIONS
QE knocks pension funds

Mervyn Kings Bank of England is using QE as a stimulus Pic: Laura Lean / CITY A.M.
NEWS | IN BRIEF
BG considers $2bn gas sale
British gas producer BG Group is offer-
ing up to a 20 per cent stake in its
Queensland natural gas liquefaction
facilities as it seeks to expand the $15bn
project. BG will undertake a global road-
show to attract bidders for the 15-20
per cent stake, which could be valued at
around $2bn based on past transactions.
A deal would allow BG to share the
costs of the Queensland project, lock in
customers and reinvest in other explo-
ration and production activities.
More banks join Facebooks IPO
Facebook added 25 banks to help under-
write the companys initial public offer-
ing (IPO), meaning most of Wall Street
will have a role in the share sale, accord-
ing to an amended IPO filing last night.
The new banks, including Citigroup,
Credit Suisse and Deutsche Bank,
increase the number of underwriters on
the deal to 31, the filing said. Facebook
also said that it had secured two new
credit facilities, one of which will help
the company satisfy hefty tax withhold-
ing obligations and remittances related
to employees' stock units following its
initial public offering.
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ALLISTER HEATH
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Andrew Tyrie called on
the heads of ratings
agencies to issue an
apology for their
companies mistakes.
4th Floor, 33 Queen Street, London, EC4R 1BR
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
CURRENCY TRADING VOLUMES DROP
Volumes in the worlds multi-trillion
dollar foreign exchange market have
dropped to six-year lows as nervous
investors have shied away from trad-
ing the euro and central banks have
continued to maintain a tight grip on
the value of their currencies.
SOCGEN TO FACE REGULATOR PROBE
Socit Gnrale is to face a discipli-
nary probe, which could result in
fines, by the Autorit de Contrle
Prudentiel, the French banking regu-
lator. Frances second-largest bank
said that the regulators inquiry
focused on controls in its private
bank over money-laundering and ter-
rorism financing.
VODAFONE HEADS TOWARDS C&WW BID
Vodafone is edging towards making
an indicative offer for Cable &
Wireless Worldwide ahead of the
Takeover Panels put-up-or-shut-up
deadline on Monday. The situation is
still said to be fluid by those with
knowledge of the company, however,
and Vodafone could still withdraw,
given continued deliberations over
price.
RATING AGENCY BACKS ROTATION
DBRS, the upstart Canadian credit
rating agency, broke ranks with its
larger US-based competitors and told
a UK parliamentary committee that
forcing companies to change their
rating agency regularly would
increase competition and prevent
group think. Representatives of the
big three agencies oppose reform.
CHINESE STEEL MANUFACTURER TURNS
TO PIG FARMING
One of Chinas biggest steel firms has
become so exasperated with the state
of the industry that it is investing
4bn in pig farming, chicken-rearing,
drain clearance and kindergarten
taxi services. The diversification of
the Wuhan Iron and Steel Group was
made after managers realised they
could make more profit on a pork
chop than they could on 1kg of steel.
TRAINS SHOULD OFFER NO-FRILLS SEATS
Trains should copy airlines and intro-
duce premium economy seats to ease
overcrowding, said Alok Sharma MP,
calling on operators to introduce a
no-frills version of first class.
BRITAIN LEADS WAY IN FINANCIAL
CRISIS MANAGEMENT
The UK has excelled in crisis manage-
ment over the five years of the global
downturn, according to analysts.
Deutsche Bank said the UK authori-
ties have done a good job to date in
limiting the effects of the crisis, bene-
fiting from control over its currency
and its own central bank.
LADBROKES BOSS TAKES 491,000
BONUS DESPITE PROFITS FALL
Ladbrokes chief executive Richard
Glynn was handed a 491,000 bonus
last year as part of his total 1.22m
pay despite a fall in profits and anoth-
er failed attempt to buy an online
gambling company.
COURT CHALLENGES EU ON BANK
DOWNSIZINGS
A decision from the European Union
Court of Justice has called into ques-
tion the tough downsizings imposed
on many of the region's banks as the
price of approval for the giant govern-
ment bailouts they received during
the financial crisis.
BIG REWARDS FOR FORD DIRECTORS
Top company executives at Ford are
getting big rewards for a turnaround
that avoided government bailouts.
The firm gave 17 of its top executives
stock valued at $56.5m for shares
granted in 2009, the year Ford
rebounded to a $2.7bn profit after a
record loss of $14.6bn the year before.
WHAT THE OTHER PAPERS SAY THIS MORNING
The new jobs website for London professionals
CAREERS.com
News
DAVID Cameron has claimed he is
working extremely hard to miti-
gate the impact of new European
rules for insurers that could force
the Prudential to quit London for
Hong Kong.
The Prime Minister said the so-
called Solvency II rules were a
good example of ill thought-out
EU legislation endangering a great
British business that should have its
headquarters in the UK.
He added: We are working
extremely hard at a European level
and with the Prudential to try and
deal with this.
Cameron made the remarks at
yesterdays session of Prime
Ministers questions, after he was
asked whether he supported Boris
Johnsons campaign to keep the
Prudential headquartered in the UK.
Earlier this week, City A.M.
revealed that Johnson had written
to Prudential chief executive
Tidjane Thiam to promise to fight
the Solvency II legislation so the
company could stay in London.
Last week, the insurance giant
admitted it was considering chang-
ing its domicile, but it is not
thought to have any plans to quit
Britain imminently.
Chief among its concerns is that
it could be forced to raise a large
amount of expensive capital
against its US business, Jackson Life,
because the EU is afraid that
American regulators are too lax.
A spokesperson for Prudential
said: We have been working with
the government and the rest of the
industry to try to ensure that
Solvency II ends up in the right
place. It is also important for the
economy that we can continue to
invest for the long term in UK busi-
ness and infrastructure, an ability
that could be endangered by the
new rules as currently drafted.
Cameron: Ill fight
to keep Pru in UK
BY DAVID CROW
POLITICS
US FEDERAL Reserve officials are

considering a new approach to
bond buying that aims to avoid
fuelling inflation.
The Fed is considering new ways
to buy bonds in order to boost
growth. One possibility is that it
could borrow back the money it
used to buy those bonds for short
periods of time at low interest rates,
according to the Wall Street Journal.
Doing so would take that money
out of circulation, or sterilise it.
Representatives from the Federal
Reserve and the New York Federal
Reserve Bank, which conducts the
central banks bond trading,
declined to comment.
The Fed is holding a regular
policy meeting next week but is
not expected to launch another
round of bond buying at that
time.
However, chair-
man Ben
Bernanke (inset)
has signalled
that he would
c o n s i d e r
a n o t h e r
round of bond buying to support
the fragile recovery if tepid
growth and modest
improvements in the
labour market falter.
Many analysts believe
that the Fed will resort
to quantitative easing,
later this year as high-
er oil prices and
Europes eco-
nomic prob-
lems weigh
on the
Amer i c an
recovery.
US Federal Reserve is considering
new methods of quantitative easing
ECONOMY
NEWS | IN BRIEF
Asian defence spending booms
Asian military spending will top that of
Europe in 2012 for the first time in cen-
turies, a global defence survey said yes-
terday, pointing to high regional
economic growth and an increasingly
ambitious China. The International
Institute for Strategic Studies said US
military spending was also falling with
withdrawal from Iraq and Afghanistan
although Washingtons $739bn
(469.5bn) budget still dwarfs that of
other nations. With the Pentagon explic-
itly refocusing its strategic attention on
Asia, the annual Military Balance report
said it was clear that a major historical
shift was underway.
US to offload $6bn AIG shares
The US Treasury yesterday revealed
plans to sell $6bn of American
International Group (AIG) shares and
struck another deal for the insurer to
pay down $8.5bn more in obligations, in
a bid to hasten its unwinding. AIG said
the agreement would allow it to pay
down what it owed in a special purpose
vehicle, AIA Aurora, and free up some of
the company's collateral, including
interests in aircraft lessor International
Lease Finance Corp and Asian insurer
AIA Group. The special purpose vehicle
was set up in December 2009 in
exchange for a reduction in the debt
that AIG owed the New York
Federal Reserve.
LAWYERS and pension funds yesterday
hit out at proposals to remove tax
relief from high-earners pension con-
tributions, arguing it would be unfair
and overly complicated.
Removing the relief on employee
contributions for those earning over
150,000 a year could be a tempting
move for the government, raising
around 8bn per year for the Treasury.
However, that would mean taxing
pension contributions as they are
saved, and then taxing the income as
it is paid out in later years.
If this change is made, it would be
equitable to remove tax on money
being paid out of pensions, said David
Heaton from Baker Tilly.
However, I cant see them doing
that as the aim is to raise money.
Firms could avoid the new tax by
increasing employers contributions,
which Heaton believes may prompt
the government to cancel national
insurance relief on contributions
potentially raising 13bn per year.
But that would hit more people
than just top earners, he warned.
The pensions industry is also wary
of any new taxes on contributions.
The pensions regime has been sub-
ject to massive upheaval in recent
years, and more changes would fur-
ther hit incentives to save and place a
huge administration burden on
funds, said Paul Platt from the
National Association of Pension Funds.
The annual cap on tax-free contribu-
tions has already been lowered from
over 200,000 to 50,000, and the NAPF
believes the government may compro-
mise by reducing that to 40,000, rais-
ing an extra 600m per year.
Lawyers: Removing
pension tax relief
will hit savers twice
BY TIM WALLACE
UK ECONOMY
DEUTSCHE Bank is shaking up its top

management to give investment bank-
ing and emerging markets more
prominence, and will oust risk officer
Hugo Baenziger, two sources familiar
with the matter said yesterday.
It will elevate US banker William
Broeksmit, currently head of risk at
the corporate and investment bank, to
its seven-member management board
as group risk chief, the sources said.
The move also foresees the appoint-
ment of Canadian trader Colin Fan,
and Australian Robert Rankin as co-
chief executives of the investment
bank, the source said.
Fan is head of credit and emerging
markets, while Rankin, who heads the
banks Asia Pacific operations, helped
the bank secure roles on the AIA and
Agricultural Bank of China initial pub-
lic offerings.
Deutsche plans reshuffle
in investment banking
Colin Fan (left) and Robert Rankin (right) are lined up as co-heads of the investment bank
BY HARRY BANKS
BANKING
R
F
i
t
B
BORIS Johnson has written to the chief

executive of Prudential in a bid to con-
vince the insurance giant to keep its
headquarters in London, City A.M. has
learned.
The Mayor sent the letter to Tidjane
Thiam last Friday, following the revela-
tion that Prudential was considering
moving its headquarters to Hong Kong
to avoid tough new European rules for
insurers known as Solvency II.
Johnson, who is campaigning to be
re-elected in May, said he was
extremely concerned to learn that a
change of domicile was under review
and promises to lobby both in
Brussels and London to ensure that
E an
BY DAVID CROW
y
Issue 1,585 Tuesday 6 March 2012
Dear Tidjane,
As London`s Mayor I was extremely
concerned to learn that a change of
domicile was under review...
...I wanted to let you know that we
always work to ensure that
European regulatory initiatives do
not work against the interests of the
UK...
...Finally, I would obviously like to
remind you and your board of the
many advantages to your firm
being based in London...
BORIS BEGS
PRUTOSTAY
EXCLUSIVE
P i c t u r e : L a u r a L e a n / C I T Y A . M .
R
o
Tuesdays front page
NATIONAL Australia Bank (NAB) is
likely to position its UK bank assets
for sale after separating off its trou-
bled commercial real-estate business
at the end of an ongoing review of its
UK operations, two sources said.
The result of the review is due in
May, and it is still classified within
NAB as an operational review with a
focus on raising the returns from the
business that is a drag on NABs earn-
ings, they said.
NABs UK bank business spans 335
branches through its Yorkshire and
Clydesdale branches. It also holds
about 6bn ($9.4bn) in commercial
real estate exposure, with close to a
tenth of that stressed, the sources
said.
Analysts estimate NAB UK assets to
have a book value of around 3.0-
3.5bn ($4.7-$5.5bn) and a sale could
raise anywhere between 0.5 to 0.7
times book in current market condi-
tions, or between $2.3bn and $3.9bn.
The sources said the core portfolio
had the likelihood of fetching closer
to book value, if not more in the short
term, once the real-estate exposure
was hived off.
TREASURY sources talked down the
idea of a state-owned business bank
yesterday as Vince Cable appeared to
row back from the idea in a speech at
Mansion House.
A treasury source told City A.M. that
the creation of a wholly publicly
owned bank that channels cheap
funds into small business (SME) is not
going to happen.
It is also understood that Cable has
made no serious moves to examine
the policy despite writing a letter to
his Tory coalition rivals pitching it.
And the business secretary told City
leaders last night that it is in fact
unlikely to be pursued
because it would delay re-
privatising RBS and Lloyds
and would not get past EU
law.
He also said it could
hinder the development of
a functional small business
credit market, which is
being examined by Tim
Breedon, formerly of
Legal & General, in
a special gov-
ernment taskforce.
Cable said that instead of a state
bank: Our focus at the moment is on
credit easing where the government
uses its own access to currently cheap
bond finance to support cheaper and
hopefully more plentiful bank credit.
He suggested that small businesses
currently occupy a death valley in
finance terms.
He told leading City figures that
SMEs inability to get funding might
not show up in surveys which do not
reveal high demand if they dont
even apply for loans because they are
perhaps scarred by recent experience,
or simply scared of what might go
wrong. But he hinted at sympathy for
lenders arguments that regulations
are choking off SME credit, saying
that adjusting rules would be
sensible but difficult to
achieve.
Cable, who was an economist
for Shell, also compared the
finance industry to oil compa-
nies that extract resources from
countries with little regard
for what hap-
pens outside
the perimeter
fence.
Treasury cool
on Cable state
bank policy
BY JULIET SAMUEL
POLITICS
BANKING
HSBC has agreed to sell its general

insurance businesses to French insur-
er AXA Group and Australias QBE
Insurance Group for $914m (580m)
in cash, as Europes biggest bank
moves ahead with its plan to divest
non-core assets.
HSBCs decision to exit the business
could be a precursor to similar deals
as lenders globally consider selling
capital-intensive businesses as reserve
requirements become more strict.
We expect rising capitalisation
requirements across the banking and
insurance sectors to continue to drive
portfolio re-balancing, with some
banks in particular reflecting on the
value of manufacturing and/or dis-
tributing non-life insurance going for-
ward, said Ron Kozlowski, director of
Towers Watsons general insurance
consulting business in Asia Pacific.
The deal, the latest in a series of
cost-cutting initiatives under new
HSBC chief executive Stuart Gulliver,
includes 10-year bancassurance agree-
ments with AXA and QBE.
The agreements will earn commis-
sions and profit-related payments for
HSBC on top of the cash value of the
deal.
For AXA, the acquisition is a step
forward in its effort to boost emerg-
ing markets presence and potentially
help Europes second-biggest insurer
to achieve its 2015 targets ahead of
time.
HSBC sells non-core insurance
units to AXA for over $900m
INSURANCE
News
HSBCs Stuart Gulliver is trying to streamline the bank Picture: GETTY
National Australia Bank
prepping for UK sell-off
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today. Lord Mayor David
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Adam Walker and Morgan
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THE BRITISH Bankers Association
(BBA) said it is keen to keep a central
role in compiling the London
Interbank Offered Rate (Libor), a key
financial benchmark, despite recent
scandals.
The industry body also insisted that
the number, which is used as a meas-
ure of interbank interest rates borrow-
ing costs in trillions of pounds worth
of financial products, continues to be
the authoritative benchmark of the
wholesale money market.
The compilation of Libor is current-
ly under investigation by nine regula-
tory bodies in different countries over
allegations that it was manipulated
during the 2008 financial crisis by
weak banks whose borrowing costs
had risen.
The scandal has sparked calls for
Libors key role to be scrapped or for
regulatory involvement in supervising
it potentially taking it over entirely,
which would be a blow for the BBA.
The data is currently compiled by
the BBA and then crunched by
Thomson Reuters by removal of the
outliers at the bottom and top of the
range.
The BBA claims that it has been
notable for its objectivity and accura-
cy, but trust has been eroded as the
scandal engulfs banks and hedge
funds accused of trying to manipulate
the data.
BBA keen to maintain
role in compiling Libor
BY JULIET SAMUEL
BANKING
News
INVESTMENT bank Goldman Sachs is
reshuffling the board of directors
that oversees its UK-based subsidiary,
with four senior executives stepping
down from their board-level roles,
including investment banking rain-
maker Yoel Zaoui.
Zaoui, Christopher French, David
Wildermuth and the soon-to-be relo-
cated to Hong Kong Matthew
Westerman have stepped down from
the board of Goldman Sachs
International (GSI), the UK and
European subsidiary of Goldman
Sachs Group. The 10 person board
will now comprise an equal number
of executives and non-execs.
Goldman Sachs rejigs its
UK subsidiarys boardroom
Goldmans Matthew Westerman and three others will step down from the GSI board
BY DAVID HELLIER
INVESTMENT BANKS
THE ASSOCIATION of British Insurers

(ABI) says the government must come
to a new agreement soon if it wants
to secure a sustainable flood insur-
ance market in the UK.
It claims that up to 200,000 proper-
ty owners will struggle to get afford-
able insurance when the current
agreement ends in June 2013.
At the moment insurers agree to
provide flood cover as standard for
low-risk properties, on the condition
that the government invests in
defences. The industry feels that the
governments decision to cut spend-
ing on defences means it has reneged
on its part of the deal.
Richard Benyon, the minister
responsible, yesterday ruled out
renewing the existing agreement.
James Dalton, the ABIs Head of
Property Insurance, said: We are run-
ning out of time to ensure that peo-
ple in high flood risk areas can
continue to get affordable flood
insurance when the Statement of
Principles expires in June 2013.
It is widely recognised that the
current industry agreement with the
government is unsustainable, [and]
has thwarted choice for consumers,
ABI said in a statement.
ADMIRAL shares climbed 11 per cent
yesterday after the firm overcame last
years profit warning to announce
better-than-expected results.
The car insurance giant increased
profits to 299m in 2011, up 13 per
cent on the year before, largely
thanks to the addition of 600,000
new customers. Turnover increased
38 per cent to 2.19bn.
But although the board was
pleased to announce record-breaking
year-end figures, it was disappointed
by the absence of further growth.
Chief executive Henry Englehardt
called on the spirit of Dickens, saying
2011 was the best of times, it was the
worst of times.
Profits are up 13 per cent, and in
most situations youd call this a giant
winner. But this is less than most peo-
ple thought they would be. Far less
than I thought they would be, thats
for sure. It has been a disappointing
year. Not because it was a bad year,
but because so much more was
expected.
Analysts had initially pencilled in a
22 per cent profit rise for 2011 but
slashed their forecasts in November
when Admiral which insures one
in 10 cars on Britains roads
warned it had been hit by a substan-
tial jump in personal injury claims,
driven by a small number of big pay-
outs to cover long-term care for
injured customers.
The firm will look to increase earn-
ings during 2012 by increasing premi-
ums and developing revenues from
other ventures such as its online com-
parison site, Confused.com.
However it faces the threat of regu-
latory intervention on ancillary rev-
enue, such as highly profitable
referral fees to claims lawyers and car
hire firms.
Shares in the firm closed at 11.44.
Admiral hits
record profit
in tough year
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ABI warns 200,000 could
miss out on flood insurance
BY JAMES WATERSON
INSURANCE
INSURANCE
News
ANALYST VIEWS: CAN ADMIRAL BOOST PROFITS IN 2012?
NICK JOHNSON
NUMIS
UK customer
growth slowed in the sec-
ond half of the year to a
10 per cent annualised
increase from 30 per cent
in the first half, as Admiral
switched from raising
rates a little less than the market to a little
more. The group put through average rate
increases of 15 per cent for the year and we
see potential modest downside risk to fore-
casts from the slowdown in UK customer
growth and a longer than expected drag
from International losses. Hold.
RICHARD CURR
PRIME MARKETS
More than ever
in 2011-12, Admiral has
been written off as a
stock that has had its day.
Once again, Admiral has
blown profits and revenue
expectations out of the
water, confounding the analysts with
growth numbers and importantly under-
scoring this performance with a record full-
year dividend per share. Prime Markets
believes that the results today will in time
see the stock recover levels from last sum-
mer around 1500-1600p. Buy.
KEVIN RYAN
INVESTEC
As 58 per cent
of 2011 profit came from
the sale of ancillary prod-
ucts, it is clear that strong
growth in new vehicles
insured is needed to grow
earnings. The share price
does not reflect the likelihood of either of
these events ever occurring, in our view.
Admiral remains significantly more prof-
itable than the rest of the UK motor market.
We believe that as Admiral grows and its
competitors take remedial action to address
losses, this leadership position will be
eroded. Sell.
CEO Henry Englehardt had a disappointing year Picture: Micha Theiner/CITY A.M.
ANALYSIS l Admiral Group PLC
p
1 Mar 2Mar 5Mar 6Mar 7Mar
1,200
1,175
1,150
1,125
1,100
1,050
1,025
1,075
1,144.00
7 Mar
THE CHIEF executive of Jupiter
warned the financial services sector
would continue to shrink as a propor-
tion of Britains economy as the fund
manager posted a jump in annual
profits.
Edward Bonham Carter also said his
sector has to work harder to give value
for money as the City adjusts after a
long period of growth before the crisis.
I think we are still in the deleverag-
ing cycle as we work off some of the
excess particularly high debt levels,
he told City A.M.
Jupiter has bolstered its balance
sheet after a year of deleveraging and
its net cash position, of 7.4m at 31
December, is the strongest in its histo-
ry after nearly halving its debt posi-
tion to 143m over the year.
The fund manager pulled in 700m
of new money during the year,
although assets under management
dropped 5.4 per cent to 22.8bn as
market movements hit its funds.
Bonham Carter said markets are likely
to remain volatile and fund flows
subdued, echoing warnings of client
nervousness made last week by the
head of fund manager Henderson.
Its quite reasonable to expect a lag
from retail investors before they get
confidence into risk, Bonham Carter
said.
Pre-tax profit jumped 65.8 per cent
to 70.3m. The firm will continue its
European expansion, believing
investors in Germany and France will
want to own more equities.
City shrinks
but Jupiter
goes red hot
AN INVESTMENT fund founded by
the Lebanese Prime Minister yester-
day upped its stake in Sainsburys to
more than three per cent, lifting
the supermarkets share during
afternoon trading.
Founded more than 40 years ago
by brothers Taha and Najib Mikati
who has twice served as Lebanese
PM since 2005 the M1 Group today
is a diversified investment company
with interest ranging from South
African telecoms to London real
estate.
The investment arms interest in
Sainsburys is largely seen as a play
on the companys property assets,
which are estimated to be worth
almost twice its market capitalisa-
tion.
In the supermarkets last annual
report, its property portfolio was
valued at 10.9bn. Its share price
closed up 1.35 per cent yesterday at
292.9p, valuing the company at
around 5.6bn.
Sainsburys largest shareholder is
still the Qatari Investment
Authority with 26 per cent of the
retailer. Despite a failed takeover
bid in 2007, speculation remains
that the Qataris could renew their
interest in the supermarket in the
future.
Lebanese PM
lifts stake in
Sainsburys
Edward Bonham Carter issued a warning to the financial services sector Pic: GETTY
BY PETER EDWARDS
ASSET MANAGEMENT
RETAIL
News
CITYA.M. 8 MARCH 2012 7
ANALYSIS l Jupiter Fund Management PLC
p
260
265
255
250
245
240
242.10
7 Mar
US ENGINEERING giant General
Electric has signed a deal to occupy a
former Olympic landmark building in
Argents huge Kings Cross central
development scheme this summer.
The so-called German Gymnasium
next to Kings Cross Station was built
by the German gymnastic team in
1865 and was used to host events at
the 1866 London Olympic games.
Roger Madelin, joint-chief executive
of developer Argent, told delegates at
property trade show MIPIM yesterday
that GE planned to move in before the
2012 Olympics and use the 6,000 sq ft
site to showcase their ecomagina-
tion portfolio GEs green energy
technologies such as wind turbines,
solar panels and smart grids.
GE will join Camden Council, which
is moving its headquarters to a
150,000-square-foot building on the
site. French bank BNP Paribas is also
building a new office block on the site,
and Google is also understood to have
signed a memorandum of understand-
ing to take up around 700,000 sq ft of
space on the site.
The 67-acre site will also include up
to 2,000 homes and a primary school.
It will also have 500,000 sq ft of retail,
which Madelin boasted would outper-
form other retail areas in London.
General Electric strikes deal
on Kings Cross Central move
General Electric is moving into the Kings Cross Central development
News
NEWS | IN BRIEF
Remploy to close factories
Remploy a specialist employment
agency for people with disabilities is
planning to close 36 of its 54 factories in
the UK, leading to the compulsory
redundancies of 1,752 people. Remploy
will close the sites before the end of
2012 as they are unlikely to become
financially viable, the minister for dis-
abled people Maria Miller said yesterday.
GE Healthcare buys Xcellerex
GE Healthcare is taking over Xcellerex, a
supplier of biomanufacturing technolo-
gies, to expand its antibodies and vac-
cines offerings. This is the first time GE
has made an acquisition in the biopro-
cessing sector since August 2011, when
it bought PAA Laboratories. Jeffries was
the sell-side adviser to Xcellerex, its sev-
enth mandate in the past year in the life
sciences sector.
Mulberry forks out for new boss
Luxury bag designer Mulberry has spent
3.39m on welcoming its new boss from
rival firm Herms. The British label
dished out 200,670 shares to its new
chief executive Bruno Guillon, who paid
just 2 for each 18.90 share leaving
Mulberry to pay for the remaining
16.90 per share. However, Guillon will
only reap value from the offering if the
share price exceeds 23.02.
German fund sells City buildings
German real estate fund KanAm Grund
has sold two City office buildings to
Malaysian investment fund Permodalan
Nasional Berhad (PNB) in another sign
of overseas investors flocking to the
Capital. KanAm said PNB had agreed to
buy the European Bank of
Reconstruction & Developments head
office next to Liverpool Street station.
RETAILERS at Heathrow are
bucking the gloom in the
high street with an 8.8 per
cent rise in gross turnover
in 2011, fuelled by a grow-
ing number of shoppers
from the BRIC nations,
the airport said yester-
day.
Heathrow reported
record annual traffic
last month, and its shops
are cashing in on this
jump by offering more
lucrative luxury
brands.
Retail sales topped
1.7bn in 2011, a
record for the hub
airport, which is oper-
ating at close to full capac-
ity and lobbying the
government for permis-
sion to expand.
The average passenger
spent 4.35 in Heathrows
shops last year, it said yes-
terday but flyers from
Brazil, Russia, India and China
(BRICs) splashed out an average of
45.50 per head.
Heathrow said its new Miu
Miu concession and pop-up
stores for brands like Chanel
are helping bring in more
discerning shoppers.
Duty free sales also rose
12.7 per cent during the year.
We now have passengers
who are choosing to fly
through Heathrow specifically
to pick up items sold here,
said retail concessions director
Muriel Zingraff.
Passenger spending, which
includes shop purchases as well
as other charges such as car park-
ing and vehicle rental, rose 9.9 per
cent to contribute 391.4m to BAAs
revenues last year, the firm said last
month.
Heathrow says its sales put it
above Dubai airport, which reported
duty-free turnover of $1.46bn
(929m) last year, and Incheon in
South Korea, which claimed duty-free
sales of $1.53bn.
Fashionista Florrie Arnold with a bag
from Miu Miu
BY MARION DAKERS
TRANSPORT
BY KASMIRA JEFFORD IN CANNES

PROPERTY
Heathrows
retail sales
are booming
INVESTMENT bank Goldman Sachs
has sold out its investment in LMAX,
the online trading platform owned by
Betfair.
The banks exit comes as the plat-
form struggles to live up to its earlier
expectations. Its chief executive left
last year as trading volumes failed to
live up to hopes.
Betfair said that its decision to
invest a further 10m in LMAX dilut-
ed Goldmans 12.5 per cent share-
holding to less than five per cent,
meaning it no longer qualified for a
seat on the board.
Former equity trader Phil
Hylander, Goldmans representative,
who has himself retired from the
bank, subsequently stepped down
from the LMAX board and Betfair
bought out the banks residual hold-
ing.
Betfair said yesterday: As
announced in last years preliminary
results, we invested a further 10m
into LMAX which in effect diluted the
Goldman Sachs holding to the point
where they no longer qualified for a
place on the board. It does not bring
to an end their involvement in LMAX
as they are still the lead market mak-
ers and very much Exchange part-
ners. LMAX continues to perform well
and we are pleased with the volume
growth this quarter.
Last year Betfairs outgoing chief
executive David Yu said about LMAX:
I think its fair to say that its been a
mixed success. Yu went on to say
that whilst the technology had met
expectations, registrations to the site
had not. However, there are signs that
the volumes are beginning to come.
Last months forex trading volumes
touched $16bn, according to the lat-
est figures.
Goldman sells
off its entire
LMAX stake
BY DAVID HELLIER
TECHNOLOGY
THE VETERAN chief executive of
FTSE 100 miner Antofagasta, Marcelo
Awad, has paid for the poor perform-
ance of the companys flagship mine
with his job.
The Chilean copper miner made
the shock announcement yesterday
with insiders suggesting that the
board thought Awad had taken his
eye off the ball in failing to ensure
the ramping up of production at the
Esperanza mine.
Awad, who has been chief execu-
tive for eight of his 16 years at the
company, has been replaced on a
temporary basis by chairman Jean-
Paul Luksic, whose family controls
the miner.
The company is due to publish full-
year earnings next week and Awads
departure is being seen as a chance
to clean the slate before the company
tries to push forward in 2012.
Antofagasta topped its production
target for 2011 but rising costs and
the Esperanza disappointment have
taken their toll.
Antofagasta said full-year results
would be in line with market expec-
tations and the company said it
would stick with its current growth
strategy.
Antofagasta chief makes shock
exit ahead of full-year results
MINING
INDONESIA is to take more of the

profits from its vast mineral
resources by limiting foreign owner-
ship of mines in a move likely to scare
off new investment in the worlds top
exporter of thermal coal and tin.
Under new rules announced on the
energy ministrys website, Indonesia
will force foreign firms to sell down
stakes in mines by the 10th year of
production and increase domestic
ownership to at least 51 per cent.
Southeast Asias largest economy
contains some of the worlds richest
mineral deposits and its fast-growing
mining sector accounts for more
than a tenth of GDP. Grasberg on
eastern Papua island is the worlds
largest gold mine. It was not made
clear if the regulation, effective from
21 February, will apply only to new
investors or also to existing mining
investors such as Freeport McMoRan
Copper & Gold and Newmont.
Holders of mining business permits
and special mining business permits,
in terms of foreign investment, are
required to divest the shares gradual-
ly five years after production, the
regulation said. Bumi, which oper-
ates under the previous licensing sys-
tem will be required to shift to the
new licenses when the contracts
expire, Liberum Capital said.
Indonesia hits miners with
new ownership regulations
MINING
Indonesian ownership of its mines is set to increase to 51 per cent Picture: GETTY
News
ANALYSIS l Betfair Group PLC
p
885
880
875
870
865
860
855
885.00
7 Mar
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THE CHAIRMAN of John Lewis has pre-
dicted a modest recovery for retailers
this year despite unveiling a sharp fall
in annual profits.
Charlie Mayfield told City A.M. the
sector would shift from decline to
growth this year following a bloody
difficult 2011.
He added: Im not in any way
underplaying how serious the chal-
lenges are. The macro-economic envi-
ronment is still severe but it is less
critical than it was.
The John Lewis Partnership, the
employee-owned co-operative that
owns 25 John Lewis shops and 272
Waitrose supermarkets, said it grew
total sales excluding VAT by 5.4 per
cent in the year to the end of January.
That means the group did signifi-
cantly better than the retail sector
overall which grew total sales by just
two per cent less than half the
amount over the same period,
according to the British Retail
Consortium (BRC).
But operating profit tumbled by 8.7
per cent to 353.8m, after the group
decided to press ahead with its biggest
ever store expansion programme,
which saw it open 29 new Waitrose
shops and three John Lewis outlets.
The 80,000 or so partners who own
the business shared a bonus of
165.2m, equivalent to 14 per cent of
their salary or seven weeks pay, less
than the 18 per cent they pocketed in
2010.
Waitrose performed more strongly
than the department stores, with sales
at shops open for more than a year
growing by three per cent excluding
VAT. Overall sales, which include new
openings, jumped by 7.9 per cent to
5.07bn, while operating profit fell by
5.2 per cent to 260.06m.
By comparison John Lewis depart-
ment stores struggled like most non-
food high street retailers. Excluding
VAT, sales at stores open for more than
a year dipped by 0.6 per cent. Overall
sales, which include new openings like
Westfield Stratford, were up three per
cent to 3.33bn, while operating profit
fell sharply by 20 per cent to 157.9m.
Mayfield added: This was a year
when we upped the pace of innovation
and investment. That came at the
price of some short-term profit but
leaves us in a good place at the start of
this year.
John Lewis is upbeat on 2012
BY DAVID CROW
RETAIL
QR SCAN HERE
ftfftI.tem
FINANCE, LEGAL & I.T.
SALARIES UP TO
250K 1000
OVER
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ANMOL CHIBBER | DZ BANK
It attracts the higher end of the market. The rich are get-
ting richer while the poor are getting poorer. It is also
known for its quality, service, and matching prices.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: WHY IS JOHN LEWIS BEATING
THE HIGH STREET? Interviews by Kendal Gapinski
Chair Charlie Mayfield said 2011 was bloody difficult Picture: Laura Lean / CITY A.M.
MICHAELA MORAN | BANK OF AMERICA
People know what they are buying at John Lewis. Its reliable.
You know you can purchase something and have no issues. Its
also convenient you dont want to trawl the high street.
SOPHIE MUNARETTO | SMBC
It is targeting a different kind of customer. It has been renew-
ing its stores and the investment is paying off. The stores also
have a very diverse product range
Price matching
was expensive
but worth it
NEVER knowingly undersold. It
has been the guiding principle
behind the John Lewis offering
since 1925. Despite this the
group still has an upmarket
image, as exploited by a famous
Dixons advert in 2009. Step into
middle Englands best loved
department store... where an
awfully well brought up young
man will bend over backwards to
find the right TV for you. Then
go to Dixons.co.uk and buy it.
This image is something of a
double-edged sword for John
Lewis: it attracts people seeking
quality but it repels bargain
hunters. Hence the need for such
a firm price promise. The guar-
antee still doesnt apply to
online-only retailers like
Amazon (or Dixons.co.uk for that
matter), but it has been broad-
ened to include the websites of
its high street rivals.
Last year, it became more
expensive to keep the promise,
as rivals slashed their prices to
entice hard-pressed consumers
through their doors. John Lewis
said it invested an additional
23.8m in price matching on top
of the tens of millions it already
costs. Some will remark that the
40.5m profit drop at the depart-
ment store business would have
been much smaller if John Lewis
had restricted the promise in
various ways.
That misses the point. First
because John Lewis needs to
counter that expensive image
and second because by price
matching it managed to grow its
share of a shrinking pie.
That means the rebates it
earned from suppliers increased
substantially last year, allowing
it to hold its gross margin of
around five per cent steady.
There are very few retailers who
can claim to have done the same
in the annus horribilis that was
2011.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
RIVALS across town, who have forever been envious of
Credit Suisse star banker James Leigh Pembertons
brains, good humour and especially his contacts,
have been talking wishfully about his possible early
retirement.
Not so, says the great man to The Capitalist, when
asked the direct question. It aint happening. I
havent got anything better that I want to do.
So Credit Suisse and Leigh Pemberton clients
such as Diageo can relax, for the time being, at least.
The son of former governor of the Bank of
England and life-peer Lord Kingsdown, James Leigh-
Pemberton was educated at Eton and started his
career at SG Warburg. He handled masses of govern-
ment work during the restructuring of the UK
banks and is still the go-to man for many of Credit
Suisses clients.
BORIS Johnson likes to make much of the
fact that he has convinced the private sector
to give him oodles of cash. Barclays gave
25m to help pay for his Boris bikes while
Emirates, the airline, will pay 36m over the
next ten years to sponsor the Thames cable
car. But his method of extracting cash from
benefactors can sometimes prove a little
unconventional. The Capitalist hears that he
tapped Lakshmi Mittal for cash while the pair
were taking a leak at a
urinal in Davos,
where they were
attending 2010s
World Economic
Forum. Just two
months later, Mittal
said he was donat-
ing 16m to help
build the UKs
tallest sculpture,
designed by Turner
P r i z e - wi nni ng
artist Anish
Kapoor, to com-
memorate the
London 2012
Olympics.
13
The Capitalist
CITYA.M. 8 MARCH 2012
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Ben yesterday. To win a pair of VIP tickets to The Gaucho
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landmark their mascot, Barnabus, the smallest polo pony in the world,
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three lovingly restored red-brick Edwardian homes just around the
corner from Chelsea's Sloane Square and Kensington. To win this bril-
liant prize here is the final clue for this week: The flag will be flying for
Barnabus' visit here so Where's Barnabus? To enter let us know where
you think he is via the Gaucho Polo Twitter site @GauchoPolo
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THE OLYMPICS will lead to a business
boom for London as the city is show-
cased to heads of states who will use
their visit as a diplomatic opportunity,
insisted the Department for
Transports London director Jonathan
Sharrock yesterday.
Deloitte director Mark Naysmith
said: Two weeks before the Athens
Olympics the smell of fresh paint lin-
gered in the air, but London will do
better as long as businesses deliver.
However, Britains biggest banks,
retailers and professional services
firms, from John Lewis to HSBC, were
urged yesterday to change their habits
or face serious disruption this sum-
mer. British gold-medallist Kieran
West implored the companies to keep
London moving for the sake of Brit-
ains Olympians, if not its businesses.
Olympics to boost
London businesses
BY LAUREN DAVIDSON
OLYMPICS
News
Funeral firm Dignity posts
a year of steady growth
FUNERAL company Dignity said death
and taxes had helped it grow last year,
after it posted a 1.3 per cent rise in pre-
tax profit to 40.3m.
The firm, which conducts more
than one in every ten funerals in the
UK, said its tax bill had dropped from
10.8m to 6m in the year, mostly
thanks to one-off credits.
Revenues rose 5.5 per cent to
210.1m. The firm said it had been a
record year for sales of pre-arranged
funeral plans, with 265,000 people
now paying in advance for their
funerals.
But it added that the number of
deaths in the first quarter of 2012 is
expected to be a lower proportion of
the year as a whole than in 2011.
Dignity added 33 new locations
during the year, as part of its expan-
sion programme that started in 2010.
It also completed construction on two
new crematoria, taking its market
share up to 8.8 per cent.
The firm said it had 14.1m in cash
available to make further acquisi-
tions. Costs grew five per cent to
31.1m due to higher pension costs
and a rise in headcount.
SUPPORT SERVICES
HOLIDAY AT HOME IN 2012

VISITENGLAND, the
national tourist board,
yesterday launched a
campaign aimed at
boosting domestic
tourism in the UK. Its
TV advert, which airs
today for the first
time, features actress
Julie Walters (pic-
tured), and is aimed at
showcasing the special
20.12 per cent discount
deals on offer on
attractions and accom-
modation during the
Olympic year.
Picture:
VisitEnglandBiz
DEUTSCHE Lufthansa posted a net
loss of 13m (10.86m) in 2011, after
taking a larger-than-expected charge
on the sale of its British Midland unit.
British Airways owner IAG in
December agreed to buy Lufthansas
British Midland for 172.5m in the
race to grab the loss-making units
coveted runway slots at London
Heathrow.
A loss of 285m from discontinued
operations reflects current losses at
British Midland and valuation effects
linked to its disposal, the German air-
line said in an unscheduled statement
yesterday.
Analysts on average had expected a
full-year net profit of 324m, accord-
ing to a Thomson Reuters poll, follow-
ing a net profit of 1.1bn a year earlier.
The German flagship carrier also
said it would pay a dividend of 0.25
almost half analysts expectations of
0.47 as an exception to its dividend
policy.
This is intended to let shareholders
participate in the successful operating
performance in the reporting year in
a way that is justifiable to the finan-
cial profile, the group said.
Meanwhile, Franco-Dutch airline
Air France KLM, which yesterday
announced it was suspending all
flights to Damascus due to the wors-
ening security situation in Syria, said
passenger traffic for February rose 6.2
per cent despite a strike action that
hit its European network.
But cargo traffic fell 5.1 per cent, hit
by the weak economy.
Air France KLM shares were up one
per cent to 4.18.
Lufthansa shares wavered slightly
before closing flat at 10.02.
Sale of BMI
takes its toll
on Lufthansa
BY HARRY BANKS
TRANSPORT
ANALYSIS l Deutsche Lufthansa AG

10.60
10.50
10.40
10.30
10.20
10.10
10.00
10.02
7 Mar
BILL GATES has stepped into the

online song sales market by launching
his music licensing business,
GreenLight, as an internet service
which could evolve to rival iTunes.
GreenLight, the three-year old enter-
tainment rights vendor, has ventured
online with the backing of music
giants Warner, EMI, Universal and
Sony ATV and already has a portfolio
of more than one million tracks.
The online auction house for music
rights allows customers to bid online
to negotiate a price for the rights to
use a song for adverts, websites and
stage productions or to get it now
for a selection of popular songs avail-
able for immediate purchase.
The website facilitates price compar-
ison and allows users to browse accord-
ing to themes including
memories, driving and cocky
and moods, from restrained to
euphoric.
GreenLight is owned by Corbis, the
digital images licenser founded by Bill
Gates in 1989 when he gained the dig-
ital rights to art masterpieces such as
the Mona Lisa and Whistlers Mother.
Corbis has made a strong start to
2012, acquiring Norm Marshall &
Associates which facilitates product
placement in films in January, and
in February launching On Demand
Entertainment, a subscription service
for licensing images.
Gary Shenk, chief executive of
Corbis, said the move was about sim-
plifying the complex process of music
licensing to make popular music more
easily accessible to the clients who
might otherwise have shied away
from the area.
Mark Pinkus, a Warner executive,
praised GreenLight Music for coming
at a time when music is being used in
more ways than ever before.
BY LAUREN DAVIDSON
TECHNOLOGY
TOKYO prosecutors yesterday charged

Olympus and six key figures in the
1.1bn accounting fraud at the camera
and endoscope maker, tightening
their case in the investigation of one of
Japans biggest corporate scandals.
Prosecutors charged ex-chairman
Tsuyoshi Kikukawa, former executive
vice-president Hisashi Mori and for-
mer auditor Hideo Yamada with
inflating the companys net worth in
financial statements for the fiscal
years ended March 2007 and 2008, in
violation of the Financial
Instruments and Exchange Law.
Also charged were former bankers
Akio Nakagawa, Nobumasa Yokoo
and Taku Hada, prosecutors said.
The six were arrested in February
on suspicion of filing false financial
statements to help hide huge invest-
ment losses through complex
takeover deals at the company.
Prosecutors did not charge a seventh
person they arrested last month.
We take these charges very seri-
ously and will continue to strengthen
our corporate governance, Olympus
said in a statement. We again
express our deep apologies to share-
holders, investors, business partners,
customers and other related parties
for causing trouble.
Shares of Olympus, which have lost
about half of their value since the
scandal broke, fell 1.1 per cent.
Olympus and six former staff
charged over firms accounts
BY HARRY BANKS
TECHNOLOGY
News
Gates GreenLight has partnered with Warner, EMI, Universal and Sony Picture: GETTY
Bill Gates puts
music sales
service online
THE EUROPEAN Commission has
given the green light to Ofcoms pro-
posed price caps for Openreach, BTs
wholesale broadband division.
Ofcom, which regulates BT
Openreach due to its significant mar-
ket power, will lower annual charges
by five to 20 per cent, with further
reductions each year until March 2014.
BT said it disagrees with some assump-
tions and will consider appealing.
GAMBLING group Sportechs 2010
acquisition of Scientific Games
Racing, the US racetrack business, has
finally proved a success as it swung
the British company to profit last year.
Sportech posted pre-tax profits of
8m, up from a loss of 5.9m in 2010.
Revenues jumped 66 per cent to
118.2m, of which 67.3m came from
the American acquisition, rebranded
Sportech Racing.
Buyout delivers
for Sportech
Ofcom confirms
BTs price caps
TELECOMS
LEISURE
BRITISH manufacturing buyout

group Melrose posted full-year profit
at the top end of expectations and
said strong energy and mining mar-
kets meant it was set for further
growth.
The strong end-markets we have
are proving their worth, finance
director Geoffrey Martin said
We are 50 per cent into energy, oil
and gas, and mining, which are good
places to be in right now.
Melroses 2011 pre-tax profit rose
32 per cent to 161m, compared with
a forecast for 157m. Sales, 11 per
cent higher at 1.15bn, were in line.
ENGINEER Costain said yesterday it
was on course to double its profits
with its oil services operations set to
expand.
The company reported a 38 per
cent rise in full year adjusted operat-
ing profit for 2011 to 24.1m.
Finance director Tony Bickerstaff
told City A.M. the company was buoy-
ant in the UK due to a string of recent
contract wins, and that it was also tar-
geting more work with oil companies.
We work with a lot of big oil com-
panies and want to do more particu-
larly in upstream (recovery of oil).
He added that its winning of high
profile contracts in the UK, including
the London Bridge redevelopment,
were testament to its success in tar-
geting blue chip customers.
Costain, which has won contracts
such as London Bridges 400m rede-
velopment, reported that its year-end
order book edged up to 2.5bn com-
pared to 2.4bn in 2010.
Costain is debt free and had 140m
in cash at the end of last year. It said
its support services activities now rep-
resent 25 per cent of work secured for
2012. The group recommended an
eight per cent dividend hike the
fifth consecutive year that there has
been a rise. Bickerstaff added: We are
in good shape. We are employing
more people and will look at acquisi-
tion opportunities as they arise.
Costain looks
to oil to fuel
rapid growth
BRITISH aero electronics group
Cobham expects to deliver further
growth this year after cost cuts and a
strong performance from commer-
cial aviation boosted 2011 profit.
Cobham, whose equipment helps
military vehicles such as F-35 fighter
planes communicate with one anoth-
er, yesterday said 2011 pre-tax profit
rose seven per cent to 328m on sales
three per cent lower at 1.85bn.
Cobhams revenue growth has been
hit by cuts to government defence
budgets in the US, which account for
56 per cent of its sales.
The company, which said it would
increase its full-year dividend by a
third to eight pence, said a fall in US
defence sales was offset by growing
military sales in emerging markets
such as Brazil and a buoyant civil avi-
ation business, which it expects to
keep growing.
The positive trend in our export
and commercial markets are expect-
ed to continue in 2012 and we expect
to deliver underlying progress this
year, said Cobhams chief financial
officer Warren Tucker.
The increase in the dividend is a
clear statement of confidence in the
business model said Investec analyst
Andrew Gollan.
Cobham eyes lift as its civil
aviation sales head upwards
RPS GROUPS full-year results topped
analysts expectations, and the British
engineering consultancy said it
expected 2012 growth to be fuelled by
acquisitions and exposure to global
energy markets.
The company derived more than 70
per cent of its underlying profit from
outside Europe and made five acquisi-
tions during the year in a bid to
expand its international operations.
Pre-tax profit for the year was
50.8m, beating analysts estimates of
50.3m.
RPS said January to December rev-
enue rose 15 per cent to 528.7m.
RPS profits on
overseas sales
Melrose sees
energy boost
BY JOHN DUNNE
ENGINEERING
MANUFACTURING
ENGINEERING
BY HARRY BANKS
ENGINEERING
News
Costain, last year, won a 400m contract to redevelop London Bridge station
ANALYSIS l Costain Group PLC
p
212
210
208
206
204
202
204.50
7 Mar
The world now has a record number
of billionaires says Forbes, but its been
a turbulent year for those at the top
Its tough at the top: worlds
richest fight to keep wealth
News
REAL ESTATE TYCOONS DOMINATE UK LIST
WHICH SECTORS MAKE THE MOST BILLIONAIRES?
TMT
The tech and telecoms sector is
holding firm towards the top of
the table, with Carlos Slim, Bill
Gates and Oracle owner Larry
Ellison inside the top 10 and
more than 100 across the entire
list. Savvy investments in the
likes of Facebook and Twitter can
also make billions, as Netscape
founder James Clark has found.
On the media side, Oprah
Winfrey is one of the few televi-
sion faces to boast a personal
wealth of more than a billion, and
even she is outstripped by the
likes of Reuters chair David
Thomson ($17.5bn) and News
Corps Rupert Murdoch ($8.3bn).
Investments
The Sage of Omaha, Warren
Buffett, leads more than 150
investors holding spots on this
years billionaires list. But hedge
fund tycoon George Soros
demonstrated the perils of the
sector, with his wealth swinging
from $14.5bn to $22bn then
back to $20bn in the space of a
year though it still makes him
the worlds 22nd richest man.
Fashion and retail
Some 130 billionaires have made
their fortunes in retail, with
brands ranging from Aldi to
Louis Vuitton peppering the top
10. Despite the miserable state
of the UK high street, the likes of
H&Ms Stefan Persson and Nikes
Phil Knight still expanded their
fortunes.
Industry
With around 80 energy billion-
aires, 90 or so in manufacturing
and dozens more labelled simply
as diversified by Forbes, mak-
ing stuff is still a popular path
to the top of the worlds wealth
pile. Lakshmi Mittal might have
crashed out of the top 20, but
the Koch brothers, steel tycoon
Roman Abramovich and
Swedish packaging scion Birgit
Rausing are still doing well.
By Marion Dakers
Gerald Cavendish
Grosvenor - real estate
Gerald Cavendish Grosvenor is
ranked 78 on the list. As the
sixth Duke of Westminster,
Grosvenor is the wealthiest
landowner in the UK with a net
worth of $11bn (7bn), down
from $13bn from last year.
Grosvenor, age 60, is based in
Chester. He made his fortune
though his private company
Grosvenor Group, which owns
real estate on five continents.
Reuben Brothers - real
estate
David and Simon Reuben, with a
net worth of $9bn (5.7bn), are
ranked 100 on the list. The
brothers made their fortune
through investments and real
estate. Last month, they bought
Londons only private heliport.
Charles Cadogan - real
estate
Ranked number 230 on the list,
Charles Cadogan, age 75, is
worth $4.6bn (3bn) due to his
work in real estate. The eighth
Earl Cadogans fortune rose again
this year with his real estate
investments in London. Cadogan
began his career as a merchant
banker at Schroder Wagg. His
family owns a 90-acre estate in
Chelsea and Knightsbridge.
Sir Richard Branson/Sir
James Dyson/Sir Philip Green
Richard Branson is in a three-
way tie for position 255.
Branson, 61, is a self-made bil-
lionaire through his soft drinks-
to-air travel Virgin Company. This
year, Branson opened the worlds
first commercial spaceport in
New Mexico. His net worth is
$4.2bn, which has held steady
since last year. Sir James Dyson,
owner of Dyson vacuum cleaners,
also ranks at 255 with a net
worth of $4.2bn, as do Arcadia
Group owners Sir Philip and
Cristina Green, whose net worth
sank by almost 40 per cent.
By Kendal Gapinski
2 Microsoft founder Bill Gatess net worth has risen this year
4 Europes richest man, LVMH chairman Bernard Arnault 3 Investor Warren Buffett has gained despite market turmoil
11 Christy Walton, Wal-Mart heiress and worlds richest woman
9 Li Ka-Shing, who reclaims the title of Asias richest man
1,153 New entrant, Spanx founder Sara Blakely 21 Steel magnate Lakshmi Mittal has fallen out of the top 20
1 Carlos Slim, the worlds richest man for third year running
MEXICAN telecoms magnate Carlos
Slim Helu has kept his spot as the
worlds richest man for the third year
running, according to the Forbes list of
billionaires out yesterday.
But his family fortune slid $5bn to
$69bn over the year, closing the gap
between him and Microsoft founder
Bill Gates, who remains in second place
with a net wealth of $61bn, up $6bn on
last year.
The pairs performance over the year
is mirrored in the rest of the list, with
plenty of movement up and down the
table as the turbulent world economy
pays off handsomely for some but swal-
lows others.
Forbes said 128 new entrants had
made it onto its list of the worlds
wealthiest, while 117 dropped off in
what it called a year of churn and
burn. It estimates there are a record
1,226 dollar billionaires worldwide,
with a combined wealth of $4.6 tril-
lion up by $100bn on last year.
The worlds wealthiest are still most-
ly based in the US, with 425 billionaires
compared with Asia-Pacifics 315. Both
regions enjoyed slight gains.
Forbes names 37 UK-based billion-
aires, with the Duke of Westminster,
Gerald Cavendish Grosvenor (pictured
inset), still the most valuable thanks to
his lucrative land holdings.
Grosvenors family wealth slid from
$13bn to $11bn over the year, according
to Forbes estimates, making him the
78th richest man in the world.
The biggest gainer was
Mexicos Ricardo Salinas
Pliego, a broadcasting and
electronics magnate who
added $9.2bn to his net
worth in the year, clinching
$17.4bn and 37th place.
Notable new entrants
include Sara Blakely, the
self-made founder of the
Spanx underwear range, with a net
worth of $1bn.
The $10bn float of Glencore last May
made new billionaires out of a handful
of its partners, with head of oil Alex
Beard, coal head Tor Peterson and joint
heads of zinc and copper Daniel
Badenes and Aristotelis Mistakidis mak-
ing their debuts on the list.
Mark Zuckerberg is the youngest of
the listed billionaires at 27 years of age,
closely followed by his Facebook co-
founder Dustin Moskovitz.
The duo are among 100 or so billion-
aires who have made their fortunes in
telecoms and technology. But while the
sector is proving lucrative for many
intrepid business owners, the Forbes
list also charts the decline of those who
fail to keep up with the fast-moving
industry.
Former Research in Motion co-chiefs
Jim Balsillie and Mike Lazardis both
crashed out, following the dire per-
formance of their BlackBerry range.
Another prominent faller was steel
magnate Lakshmi Mittal, who lost an
eye-watering $10.4bn to drop out of the
top 20 rankings for the first time since
2004.
Amid the volatility of this years
table, the Forbes list
itself is facing down
a challenger.
Bloomberg this
week launched its
own billionaires
list, to be updated
daily.
BY MARION DAKERS
WEALTH
STRONG jobs figures published yester-

day raised hopes that the economic
recovery is finally underway.
Permanent staff placements by
recruitment firms grew for the second
month running in February, accord-
ing to the KPMG and Recruitment and
Employment Confederation (REC)
report on jobs, though temporary
placements fell.
Overall demand for staff rose at the
fastest pace in four months particular-
ly in the IT and computing sector.
The index of permanent staff place-
ments rose from 51.2 in January to
53.2 in February, indicating a higher
rate of growth.
Any figure above 50 indicates an
increased number of placements.
However, the slowdown in tempo-
rary placements accelerated, with the
index falling from 49.4 to 49, and
salaries for permanent staff declined
for the first time since October 2009.
The vacancies expanded for both,
hitting 53.6 for permanent staff, up
from 52.2 in January, and slowing
slightly from 53.7 to 52.7 for tempo-
rary work.
In terms of sector, the IT and com-
puting industry and engineering and
construction sector remained the top
two growth areas, with indices of 58.5
and 57.3 respectively.
Nursing and medical care also
expanded strongly with an index read-
ing of 54 a major improvement on
the 46.3 decline registered a year ago,
when the industry was the weakest
performer in terms of hiring.
The only sector to register a fall in
vacancies in the month was the hotel
and catering industry, scoring 47.3.
The labour market is clearly
improving, so jobseekers should take
heart that there are vacancies out
there, said Kevin Green from the REC.
Slowly, private sector employers are
becoming more confident as the
gloom around the Eurozone recedes.
FIDELITY Investments, hit by another
year of massive outflows from its
stock mutual funds, said operating
profit in 2011 rose 13 per cent to
$3.3bn due to careful expense man-
agement.
Fidelity is one of the worlds largest
asset managers. Total assets under
management were $1.52 trillion in
20l1, down four per cent from $1.59
trillion in 2010.
In its report, Fidelity conceded
index and exchange-traded funds
continued to capture market share
from actively managed funds, while
extremely low interest rates led to
outflows from money market funds.
However, Fidelity offset declines in
its bread-and-butter stock funds busi-
ness by being the leading US provider
of 401(k) and retirement planning
services. Total customer assets at
Fidelity were $3.39 trillion at the end
of 2011, compared with $3.48 trillion
in the previous year.
Fidelity, however, said it experi-
enced total outflows of $20.1bn in
2011. Equity funds, in particular, con-
tinued to bleed assets, experiencing
outflows of $46.1bn, Fidelity said in
its annual report to shareholders.
Money market funds had outflows of
$16.1bnduring the year.
Fidelity, which is privately held,
said overall equity performance
lagged the prior year, with equity
funds outperforming 53 per cent of
peers in 2011, down from 59 per
cent in 2010.
Fidelity Investments sees jump in 2011
profit despite suffering fund outflows
RESTRICTIVE planning laws are hold-
ing back economic growth, hurting
the poor and pushing down the quali-
ty of houses, a new report claims.
The Adam Smith Institute (ASI) has
called for a radical shake up of plan-
ning rules that would see the green
belt scrapped, devolution of planning
powers to local authorities, and the
privatisation of development rights.
The current system makes
NIMBYism rational, the report argues.
Property owners have no incentive
to agree to development and every rea-
son to object.
The think-tank concludes this
approach has restricted development,
leading to expensive, high-density
housing within the city. This excludes
outsiders and first time buyers from
London.
As an alternative to a full shake-up,
the ASI suggests auctioning develop-
ment rights or tradable permits, with
local authorities controlling the over-
all level of development.
Think-tank: Scrap green
belt to boost GDP growth
UK ECONOMY
THE EUROZONE continues to look

weak as industrial data published yes-
terday showed the economy in
decline, while the US kept growing
with positive jobs figures.
German industrial orders plum-
meted in January, falling 2.7 per cent
on the month as foreign orders col-
lapsed.
Export orders fell 5.5 per cent, led
by an 8.6 per cent fall in non-Eurozone
demand which economists believe
will weigh on the economy.
This was a weak report which con-
firmed our view that industrial pro-
duction will remain very subdued in
the near term, said Barclays Capitals
Thomas Harjes. Our German GDP
growth forecast remains at 0.1 per
cent for the first quarter of 2012 and
we expect only some slight improve-
ment in the following quarter.
Spanish industrial output dropped
for the fifth consecutive month,
falling 4.2 per cent in January, faster
than the 3.5 per cent decline in
December.
Meanwhile, US employment rose by
216,000 in February, up from the
173,000 gain in January, ADP
Employer Services reported yesterday.
The upbeat figures point to growth
across the economy, and add to a
growing stack of evidence that the
economy is gradually speeding up in
stark contrast to the Eurozones con-
tinuing crisis.
Activity in home purchases also
picked up last week, rising 2.1 per cent
according to the Mortgage Bankers
Association (MBA), although overall
mortgage applications slumped 1.2
per cent on the week as refinancing
activity fell by two per cent.
Meanwhile, Australian GDP growth
slowed to 0.4 per cent in the final
quarter of 2011, taking growth for
2011 to 2.3 per cent.
Europe slowing as US grows
BY TIM WALLACE
WORLD ECONOMY
Employment
lifts as firms
grow bolder
BY TIM WALLACE
UK ECONOMY
BY HARRY BANKS
INVESTMENT
News
19
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ANALYSIS l Staff Appointments via Recruitment Consultancies
Permanent Placements
1998 1999 20002001 20022003200420052006200720082009 2010 2011
75
70
65
60
55
50
45
40
35
30
25
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d
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ALLISTER HEATH | CITY A.M.
Markets are already providing a degree of tightening, with some banks putting up mortgage rates. This is
good news and means the MPC should stay put this month. There are signs the economy is recovering.
SIMON WARD | HENDERSON
Stop QE but offer ECB-style medium-term funding support to banks the current policy of forcing banks to
deleverage while trying to offset the economic consequences with QE is damaging.
GEORGE BUCKLEY | DEUTSCHE BANK
With 50bn of additional asset purchases in progress, no additional policy changes will be required this
month. The next key decision will be in May following the end of the current asset purchase programme.
TREVOR WILLIAMS | LLOYDS
It looks as if the UK economy will avoid a technical recession, but the fact that Bank rate is still at 0.5 per
cent after three years this month is testimony to the problems that persist so for now, keep rates on hold.
VICKY REDWOOD | CAPITAL ECONOMICS
Continue with the 50bn of QE started last month. There are already tentative signs that the recent pick-up
in the recovery is losing steam again, suggesting that the economy still needs monetary policy support.
GRAEME LEACH | IOD
Nothing needs to change this week on either interest rates or asset purchases. All eyes need to be on the
money supply for evidence of expansion
HOLGER SCHMIEDING | BERENBERG BANK
Hold rates. Indicators continue to project a return to modest growth after a mild recession. Inflation has fall-
en back sharply, though the recent rise in oil prices clouds the near-term outlook for growth and inflation.
VICKY PRYCE | FTI CONSULTING
Hold rates. The UK might escape a further fall in GDP this quarter and high oil prices may push inflation high-
er but Eurozone figures are still weak and the contagion from Greece remains a real possibility.
ROSS WALKER | RBS
The recent improvement in the survey data provides some encouragement and is consistent with unaltered
policy settings but will need to be sustained for some time for a withdrawal of stimulus to be warranted.
CITY A.M. | SHADOW MPC VOTES TO HOLD RATES
Mecom Group
The consumer publishing company has
appointed Torben Lundberg as chief
information officer. Lundberg has been
working for Mecom since 2008 and has
over 15 years of experience in the media
industry. In his new role, Lundberg will
focus on creating group-wide IT solu-
tions. Mecom has also appointed Mark
Leimann as group director of its
Sweetdeal brand. Leimann has been at
Mecom since 2006. He will be responsi-
ble for the development of international
consumer sales products.
WH Ireland
The wealth management and corporate
finance services group has announced
that Andrew Kitchingman will be joining
the group as a director in corporate
finance. Analysts Nick Spoliar and Angus
McPhail have also joined the company.
Kitchingman and Spoliar both worked
previously at Arbuthnot Securities, while
McPhail has moved to WH Ireland from
Investec. The three combined have more
than 50 years of experience in working
on corporate transactions.
Grant Thornton
The financial consulting firm has hired
Simon Bevan as partner in the firms
London audit practice. Bevan spent 30
years at BDO and left the firm last sum-
mer to take a nine-month sabbatical,
which he spent in China working as a vis-
iting professor at Xiamen University.
Bevans main focus will be to develop the
firms privately held audit practice.
Old Mutual Asset Management
The investing firm has appointed Olivier
Lebleu as head of non-US distribution for
Old Mutual Asset Management
International. Prior to joining the organi-
sation, Lebleu was a partner and a mem-
ber of the investment advisory
committee at Stenham (Montier &
Partners). Lebleu will be based in London
and help to contribute to the firms global
expansion efforts.
Newedge
The multi-asset brokerage has named
Marc Lorin as deputy head of origination
and structuring for the Americas, James
Shekerdemian as head of origination and
structuring for Europe, the Middle East
and Africa (EMEA) and Charles Hill as his
deputy at the alternative investment
solutions (AIS) division of its prime clear-
ing services team.
CITY MOVES | WHOS SWITCHING JOBS Edited by Kendal Gapinski
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
US stocks reverse
three day decline
U
S stocks broke a three-day losing
streak yesterday, recovering
some recent losses after a report
showed the US private sector
added more jobs than expected last
month.
After suffering their worst decline
in three months on Tuesday, stocks
received an early lift after payroll
processor ADP said US private employ-
ers picked up the pace of hiring in
February.
A report from The Wall Street
Journal saying the US Federal Reserve
is considering a new type of mortgage
and Treasury bond-buying pro-
gramme boosted stocks, particularly
the financials.
Banking stocks Tuesdays big los-
ers were the strongest sector on
Wednesday. The KBW bank index
advanced 1.9 per cent. Morgan Stanley
gained 3.2 per cent to $17.88 following
a 5.3 per cent drop in the last session.
Earlier in the week, portfolio man-
agers, advisors and institutional
money managers were looking for
some sort of pullback just because its
good to buy on the dip, and weve had
such a nice run, said Mark Martiak,
senior wealth strategist at Premier
Financial Advisors in New York.
The right part of the economic
good news, good data story was the
private sector adding 216,000 jobs.
The news comes after Fed chairman
Ben Bernanke stirred caution among
many in financial markets last week
by giving no clear indication that he
plans to spur faster growth by pushing
for another round of asset purchases.
Improving economic figures have
helped push the S&P 500 up more
than 20 per cent from the October clos-
ing low.
Investors continued to eye signs of
progress in negotiations between fis-
cally troubled Greece and private cred-
itors that will result in a substantial
write-down for Greeces debt costs.
Tuesdays tumble was prompted by
renewed concerns about Greece and
the outlook for the world economy. It
was one of the worst performances
since stocks began rallying in October
and the third straight decline for the
S&P 500. Six Greek pension funds are
still holding out against joining the
deal; eight have agreed to take part.
The Dow Jones industrial average
rose 78.33 points, or 0.61 per cent, to
12,837.48 at the close. The Standard &
Poors 500 Index climbed 9.27 points,
or 0.69 per cent, to 1,352.63. The
Nasdaq Composite Index added 25.37
points, or 0.87 per cent, to 2,935.69.
The PHLX housing sector index
advanced 2.7 per cent, with
Hovnanian Enterprises up 2.5 per cent
at $2.46 after posting results.
R
ECENTLY beaten down mining
stocks and banks rallied yester-
day to help haul Britains lead-
ing shares index higher, as
above-forecast US private payrolls data
provided a positive signal ahead of
Fridays key US February jobs report.
The ADP National Employment
Report said the US private sector
added 216,000 jobs last month, top-
ping economists expectations for a
gain of 208,000 and helping allay
some of the recent concerns over the
health of the global economy.
At the close, the FTSE 100 index was
up 25.61 points, or 0.4 per cent at
5,791.41, regaining some of Tuesdays
1.9 per cent slide, its steepest one-day
fall since mid-December.
Miners led the rally in London, hav-
ing fallen nine per cent over the previ-
ous five trading days, as the relative
strength index a closely-watched
technical indicator suggested the
sector was near oversold levels.
Chilean copper miner Antofagasta,
however, missed out on the sector
rally, shedding 0.6 per cent as its CEO
Marcelo Awad resigned, surprising
investors just a week before the com-
pany is due to publish full-year earn-
ings.
Banks were higher, cheered by the
US data and by hopes Greeces private
creditors will agree by the deadline
today to participate in a bond
exchange, a key part of a bailout pro-
gramme to help Greece manage its
wrecked finances and meet a debt
repayment on 20 March.
However, if fewer than 75 per cent
of creditors accept the offer, the debt
swap could be off, potentially plung-
ing the Eurozone back into crisis.
While the market falls had been
causing concern among some
investors that the recent rally could be
running out of steam, Trevor
Greetham, Portfolio Manager,
Fidelitys Multi Asset Funds, said he
has been taking advantage of the dip
to add further to his stock and com-
modity exposure.
Greetham said he has moved over-
weight risky assets in these funds for
the first time since July 2011.
I am concerned that the economic
cycles seem to be getting shorter and
shorter and more reliant on support
from policy makers. However, markets
are more likely to peak out over the
summer months than now given con-
tinued improvements in macro data
and the pre-announced mid-year end
date for the Feds Operation Twist. I
am buying the dip, Greetham said in
a note.
Among individual stocks in
demand, Burberry added 3.2 per cent
as the European Luxury goods sector
rallied on renewed talk China will cut
import taxes on luxury goods to boost
consumption, following a report in
The China Daily.
Burberry also got a boost from a tar-
get price hike by Goldman Sachs to
2,604.1p from 2,180p and a reiteration
of its Conviction Buy stance on the
stock in a note on Global
Discretionary Retail.
Admiral Group was the top FTSE
100 gainer, up 10 per cent, buoyed by
above-forecast full-year results and an
easing of injury claims that forced it
to issue a profit warning in November.
Ex-dividend factors knocked a total
of 11.01 points off the FTSE 100 index
yesterday, with seven blue chip firms
trading without their payouts includ-
ing BAT and CRH.
Although the US ADP data bodes
well for Fridays US job data, the lack
of real fireworks today appears to
show there is little investor confi-
dence to get involved until then, said
Mike Mason, trader at Sucden
Financial Private Clients.
Miners, banks and positive US
jobs data lift blue chip index
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Kingfisher
284
282
280
278
276
p
276.60
7 Mar
KINGFISHER
Morgan Stanley has upgraded the retailer from equal-weight to over-
weight and has lifted its target price from 285p to 325p. The broker is
increasingly optimistic about the firms sourcing plans and the outlook for
French consumer spending. Morgan Stanley has trimmed its earnings fore-
casts for 2012-13 due to currency changes, but expects to see margin
increases in the UK and France over the longer term.
ANALYSIS l IMI PLC
1,000
980
960
940
p
951.50
7 Mar
IMI
Berenberg rates the engineering group buy and has raised its target price
to 11.55. The broker thinks IMIs margins are sustainable, with potential
to improve further as its business mix improves. It also reckons that IMIs
exposure to Europe, with 38 per cent of its sales in the region, is better
than some had feared. Berenberg estimates a 1-2p earnings per share boost
this year thanks to two recent acquisitions.
ANALYSIS l Michael Page International PLC
490
480
470
460
450
440
p
466.10
7 Mar
MICHAEL PAGE
JP Morgan Cazenove has raised its rating from underweight to neu-
tral and has hiked its target price from 290p to 400p following better
than expected results on Tuesday. The broker is encouraged by strong
growth in Europe, particularly in Germany, and notes that recruitment in
financial services and accountancy has not nosedived as much as some
had expected.
2Mar 1 Mar 5Mar 6Mar 7Mar
5,950
5,850
5,875
5,900
5,775
5,800
5,825
5,925
ANALYSIS l FTSE
5,791.41
7 Mar
INREV
The non-profit association yesterday announced
Patrick Kanters as chairman at its AGM. Kanters
has previous experience as a global investor, for-
merly working at ING Real Estate. Kanters is also
a member of the Executive Board of EPRA and
sits on the board of investing firm Steen & Strom.
In his new position, he will help develop industry
standards for the non-listed real estate vehicles
sector, such as developing global standardisation
and promoting inter-regional research pro-
grammes.
News
N
EW JOBS in banking and finance are
not easy to find. Last week, Morgan
McKinley released figures showing
that the number of newly-open posi-
tions fell by 47 per cent in the year to
February 2012. For the past four years, large
numbers of candidates have pursued a per-
sistently small number of jobs. The market
for finance professionals remains difficult.
In this environment, applicants have to
stand out more than ever. Its not enough
to have a fully-stocked CV, a winning inter-
view technique and a well-researched
knowledge of the role on offer. In other
words, its not enough to be the good candi-
date. To be successful in todays job market,
applicants must show themselves to be
extraordinary.
But which traits, behaviours and charac-
teristics can best separate the everyday
from the exemplary?
STRATEGIC THINKING
Lewis Fraser, operations director for bank-
ing and finance at Advantage Resourcing,
emphasises the importance of clear, strate-
gic thought. Finance is constantly in flux,
he says. One years zeitgeist is the next
years MySpace. In 2011, commodities rose
to the top as banks focused on the sector to
help them diversify and spread trading
risk. In 2012, risk and compliance have
taken centre stage, as the focus shifts to
adapting practices to recent and upcoming
legislation.
Excellent candidates must show that
they can identify future growth areas.
Once identified, they need to consider how
their future firm might manipulate mar-
ket conditions and redefine its strategies in
light of these trends. Strategic thought
requires being aware of broad market
movements, knowing the ambitions and
concerns of the particular company, and
finally suggesting a clear and achievable
solution that will reconcile the two.
INNOVATION
Banking and finance will prove an increas-
ingly competitive environment in 2012.
Therefore, the ability to offer coherent
strategies for the future must be combined
with a ceaseless commitment to innova-
tion in approach, concept and delivery.
Exceptional candidates can enter an organ-
isation, identify opportunities and intro-
duce new ideas. So far, so uncontroversial.
More difficult is how this can be translated
during the application process. How can a
job applicant show off his or her innovative
thinking?
Proof of ability to deliver is essential.
Although being a catalyst of change
could sound like jargon, Richard Hoar,
director of banking and financial services
at Goodman Masson, thinks the phrase has
real-life application. Candidates must fur-
nish examples of how their innovative
thinking has directly led to benefits for pre-
vious employers. They must show how
their career has achieved momentum pre-
cisely because of their ability to find new
solutions. Its a question of subtle-selling
this is what I am and most importantly
these are the outcomes of my innovative
thought. The candidate must tell a believ-
able story furnished with facts.
ENTHUSIASM
The best place for a candidate to do this is
in interview. Although interviews can
seem formulaic, a visibly enthusiastic
approach is essential. Fraser calls it a key
indicator that a candidate is after a partic-
ular job, not just any job. Its best to actu-
ally be enthusiastic about the role, but
communicating a willingness to put in
the hours and work outside the jobs spe-
cific remit, where necessary, can suffice.
Enthusiasm is even more important in
straitened times, as employers need new
or existing employees to offset the
impact of a possibly reduced headcount.
But Hoar thinks enthusiasm is more
than just acting the puppy dog. Its a way
of helping your prospective boss or col-
leagues see that youre living the role
youve applied for. It involves the candi-
date being visibly willing to adapt to suit
the job. It also requires a commitment
from the candidate that he or she will
match their skill set and career ambi-
tions to that organisations values and
what the particular department wants to
achieve. An excellent candidate will
research thoroughly to give this enthusi-
asm credibility.
BACK TO BASICS
Candidates, however, should walk before
they run. Vincent Bowen, director at CMC
Consulting, says that its often hard to dis-
tinguish between the great and the
remarkable, but many forget the basics
while trying to prove themselves perfect. A
nervous throwaway remark said at inter-
view can determine the outcome in an oth-
erwise exemplary performance. Before
girding themselves to be star performers,
job applicants must have a clear, business-
like CV, should sell their appropriate aca-
demic achievements, and above all ensure
that they are relevant to the role. Potential
employers are obsessed with recruitment
risk and although they want excellence,
they also deserve reassurance. Brilliance
can be attractive, but the ideal candidate
will understand that even brilliance needs
to be anchored to the mundane.
CAREERS.com
1,400
jobs in total
JOBSof theWEEK
W W W. C I T Y A M C A R E E R S . C O M
TODAY ON
CAREERS.COM
21
Senior commercial analyst
London
45k-55k, plus excellent benefits
A market-leading leisure firm seeks to fill a
core role in analysis of profitability across
the business. The ideal applicant is a quali-
fied member of an accounting body.
www.cityamcareers.com/job/5636
VP New Business Development
Central London
90k-110k, plus bonus
A leading investor services bank is seeking
a candidate with strong and demonstrat-
ed sales experience and a record in devel-
opment of successful customer accounts.
Wealth planning adviser
Zurich
125k-135k
An international private bank needs to fill
a role providing holistic, strategic wealth
and tax planning solutions to relationship
managers and their private clients.
Regulatory policy manager
London
80k-95k, plus bonus + benefits
A leading global investment bank seeks to
fill a senior role with an accountant with
the ability to drive through change. The
role has excellent career progression.
Legal counsel
Central London
75k-90k
A leading mobile banking organisation
requires an in-house legal counsel who
wishes to achieve significant career pro-
gression in a highly-commercial practice.
Over
280
roles in accountancy
More than
150
roles overseas
Over
100
roles in insurance
Over
100
legal roles
More than
150
jobs in I.T.
More than
Give yourself an edge
in a tight job market
Applicants need to be more than just acceptable, writes Tom Welsh
Scan here to go to
CITYAMCAREERS.COM A good candidate will soar with a little work, but must remain anchored Picture: GETTY
T
HE government is to be applauded for its
attempts to get the medium-term public
finances under control. However, its
enthusiasm to do so is leading, increas-
ingly often, to decisions that will mortgage the
future to the benefit of the coalition. The gov-
ernment seems to have a time horizon of pre-
cisely five years. Beyond that, debt is somebody
elses problem.
The latest example to hit the headlines again
is that of the Royal Mail pension fund. Because
the Royal Mails pension fund is an albatross
around the publicly-owned corporations neck,
the government wants to take responsibility for
the fund in order to ensure a quick privatisa-
tion of the Royal Mail. This involves the govern-
ment taking the assets of the fund about
25bn onto its balance sheet while taking
responsibility for the future pension liabilities.
Interestingly, because of the way the govern-
ment does its accounting, these liabilities do
not appear in government borrowing and debt
figures. So the government appears to be get-
ting a windfall of 25bn. In fact, it is also taking
on pension liabilities of up to 50bn (there is a
deficit in the fund) but sweeping those liabili-
ties where the rest of the long-term public pen-
sion sector liabilities go under the Treasury
carpet. The bills will be picked up by future gen-
erations of taxpayers.
I would have no objection to the continued
nationalisation of the fund. It may not be in
anyones interest to privatise the Royal Mail
while giving it the legacy of a pension fund
deficit. The pension fund is currently a state-
run fund, but it is one that contains real assets.
This situation could continue and the fund
could be ring-fenced. Instead it is to be replaced
by a scheme with no assets the money will be
used to make the UKs national debt look small-
er and give future governments a licence to
spend more money.
Indeed, we may not have to wait very long for
the politicians to get their hands on the money.
Already, government back-benchers are pres-
surising the government to sell the assets and
use the money to spend on government infra-
structure projects.
This example shows why we desperately need
better public sector accounting that makes
proper provision for pension liabilities just
like the government requires of the private sec-
tor. Britain is following the example of
Argentina and Hungary in taking pension fund
assets onto its balance sheet and then using
those assets for apparent debt reduction while
taking on board a huge level of future liabilities
that do not appear in government accounts
except in the depths of documents several hun-
dred pages thick.
Unfortunately, this is not the only example of
government medium-termism. Wherever you
look, the coalition is mortgaging the future.
Next month, the government is abolishing con-
tracting out from defined contribution pension
schemes. It will no longer be possible to take a
rebate of national insurance contributions and
invest it in your pension scheme. What will
happen instead? The answer is simple. The gov-
ernment will take the national insurance con-
tributions, spend them, your pension saving
will be reduced and the government will take
on the additional pension liability. The 2bn a
year in extra national insurance contributions
will be spent today and no provision will be
made for the governments additional pension
liabilities.
The governments pensions Green Paper pro-
poses going all the way and abolishing contract-
ing out for everybody and the government has
made it clear that this is its desired path. Once
again, the effects are clear. Over 7bn extra will
flow into the Treasury and be spent.
Meanwhile, saving will be reduced, costs on
employers will rise and the governments
future pension obligations will increase.
Indeed, the government seems to be pursu-
ing medium-term goals with missionary zeal. It
recently caved in to the unions on public sector
pensions. But, cleverly, it took a decision that
will increase government costs by up to a third,
but back-loaded those costs so that they will not
be felt until the coalition is dead and buried.
The long-term trends in government
finances are grim. The Office for Budget
Responsibilitys report on this matter produces
projections for pensions, long-term care and
health spending which should be deeply worry-
ing. Against this background, we have a govern-
ment taking action that almost nobody
understands to reduce private saving and
increase pension obligations. In doing so it is
tearing up arrangements that have been sup-
ported by ministers as extreme as Tony Benn
and Barbara Castle and promoted by successive
Conservative and Labour governments. This is
not a good time to be entering the labour mar-
ket. The very-long-term outlook for the UK tax-
payer is not good and this government is
making it a lot worse.
Philip Booth is the editorial and programme
director for the Institute of Economic Affairs.
22
The Forum
The government has a five
year horizon. Past that, debt
is somebody elses problem
Britains long-term outlook
is suffering as the coalition
pursues medium-term gain
cityam.com/forum
PHILIP BOOTH
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
23
The fight goes on
but Mitt Romney
is looking almost
unstoppable now
In America, the
Republican race
has got a leader
W
ITHOUT a very public fight at the
partys convention in August, Mitt
Romney will be the Republican nom-
inee. After Super Tuesday, Romneys
delegate lead over closest rival Rick Santorum
is now looking increasingly insurmountable.
However, Romney may well be edging ever
closer to the nomination, but his opponents
feel far from defeated. As this week demon-
strated, Santorum and Newt Gingrich contin-
ue to win their own contests and for the time
being have earned the right to stay in the race.
If Super Tuesday wasnt the knockout blow
Romney was hoping for, his campaign still
delivered, winning enough contests and seiz-
ing enough delegates in states once regarded
as entirely inhospitable to his candidacy. Of
the ten contests on Tuesday, Romney won six,
racking up victories in Alaska, Massachusetts,
Vermont, Idaho, Virginia, and, most impor-
tantly, Ohio. After the hard fought victory in
Michigan, Ohio was seen as yet another litmus
test for Romneys candidacy. Given that no
Republican has ever won the White House
without also winning in the Buckeye State,
defeat in this bellwether would have severely
undermined Romneys narrative as the most
electable candidate in the field. It went down
to the wire, but it was a win nonetheless.
Historically, candidates drop out because
their campaigns start to resemble vanity proj-
ects or they simply run out of cash. Santorum
and Gingrich are not there yet, especially in
the latter category. Having seen his strong
leads wiped out in Michigan and Washington
in the past week, some pundits were question-
ing whether Santorum had the appeal to
remain in the race. Victories in Tennessee,
Oklahoma and North Dakota have given a
clear answer. Gingrich is in less certain territo-
ry. Of course, the former speaker resoundingly
won his native state of Georgia, but he cam-
paigned there heavily and wasnt even compet-
itive elsewhere especially in Ohio.
With more southern and conservative states
coming up on the calendar, Gingrich needs to
beat Santorum to fully justify his claim that
hes again a serious candidate and the true
alternative to Romney. In the past month,
Santorum and Gingrich have publicly lament-
ed that if they had a straight shot at Romney
they would unite the conservative forces
behind a single candidate and halt Romneys
march towards Tampa. However, these utter-
ances have become increasingly heated, with
Gingrich now regularly blasting Santorum for
his opposition to right to work legislation
when he served in the Senate. Both candidates
will have to go ugly to maintain momentum.
The rest of March will be somewhat difficult
for Romney. Hell likely win some smaller races
in Hawaii and Puerto Rico, but his main focus
will be on Illinois on 20 March. Like Ohio,
Romney has a significant advantage over
Santorum because the former senator failed to
file for delegates in four of the states 18 dis-
tricts. Thus, the former senator is already inel-
igible for 10 of Illinoiss 54 delegates. A win in
Barack Obamas home state will provide the
ideal springboard for April, a month where
more Romney-friendly states will be allowed to
usher the contest along by awarding their del-
egates on a winner-takes-all basis.
Ewan Watt is a Washington DC-based consultant.
You can follow him on @ewancwatt
Caught in the net
[Re: A so-called mansion tax will
not achieve fairness, yesterday]
Aside from the obvious problems
in administering a mansion tax,
its clear that its not solely super-
rich buyers whod bear the brunt
of an annual property levy, but
long-term homeowners who may
not be cash-rich but simply live in
areas where house prices have
climbed rapidly. In Kensington &
Chelsea, for instance, the average
property valued at 2m would
have been worth just 392,000 in
1995. In essence, it would consti-
tute yet another tax burden on
London, penalising long-term
property ownership.
Peter Rollings, chief executive,
Marsh & Parsons
Tax on Londoners
I would make your headline more
explicit: the mansion tax will be
unfair. I have lived in my home for
twenty years, having bought it in a
dilapidated condition and lovingly
restored it. I still have a mortgage,
I have paid my taxes and have not
lived extravagantly, but always
expected my estate would face
more taxation via inheritance tax.
I accept this as a good citizen, but
this proposed tax would force me
to sell my family home. I have
never regarded my home as any-
thing other than a home, not a
piece of tradeable property. I fall
into the category of the asset-
rich/income-poor. Were I to be
forced to sell up, only the income-
rich could afford my home. Is it
LibDem policy to force hard work-
ing people out of their homes and
make the ownership of expensive
homes exclusive to the super
income-rich? I doubt this idea has
been thought through, especially
its implications for a small minori-
ty, who mainly live in London.
Alaistair Albright
Fair valuation
A fair tax is based on fair value.
Its 21 years since Vince Cables
house was valued for council tax.
A valuation for everyone today,
reflecting the great changes in val-
ues, would probably result in high-
er overall tax for everyone in the
southeast, and lower taxes for the
rest of the country. Surely fair,
even for Cable?
Simon Harris
War on wealth
[Re: War on Britain's aspirational
classes, Tuesday]
This article reflects how most of
us feel. Furthermore, a potential
property tax is deeply worrying
for those fortunate enough to
have benefited from the surge in
south England house prices,
myself included. We dont neces-
sarily have spare cash lying
around. My wife and I work very
long hours, pay outrageous levels
of tax and have children at pri-
vate school. What do we get in
return? Criticism for being suc-
cessful. How about a tax refund
for not burdening the state edu-
cation system, for example?
Those that use the system more
should pay more.
Name withheld
Seen it before
This article added clarity for me
on the issues around the higher
tax rate and cutting benefits to
higher rate payers. Before I left
South Africa, almost 15 years
ago, I had been paying 40 per
cent tax while working incredibly
long hours and weekends. I felt
robbed and it was a huge disin-
centive to making any effort,
especially since I was in my
twenties and missing out on time
with friends and family. Sadly, it
seems that the negative effects
of globalisation and taxation are
lessening the appeal of Britain as
a country to live and work in.
How does Britain now compare
to Brazil, for example?
Grant Volker
Final separation?
Its worse than just high taxes. If
youre a divorced father of two
and your ex decides to exercise
her legal privilege to involve the
child maintenance and enforce-
ment commission, ones tax rate
jumps another 16 per cent on the
first 800 per week gross earn-
ings, and then further still. If the
Tories have their way, the spread
between what the father pays and
the mother gets will widen.
Anyone on a 50 per cent tax rate
will in fact be paying much closer
to 70 per cent. I am now com-
pletely priced out of the UK and
am seriously considering whether
to leave Britain for good.
Name withheld
Fleeing the nest
The people I feel the worst for
are precisely the group of young
aspirational professionals you
outlined. They commute long dis-
tances, despite working 12+
hours a day, and tax increases in
recent years have made central
London unaffordable to them.
This demographic will look
abroad for work and the next
generation of professionals in
London will be hollowed out. I
was undecided over whether the
50p tax rate would ultimately
lead to mass movement away
from London but my view is
changing quickly. An increasing
number of my peers move to
other jurisdictions for lesser
roles, simply because London is
becoming too difficult. Ive seen
three young families move out of
London in the last six months. As
these families leave, their peers
are more incentivised to leave
also because they no longer have
the same networks in the work-
place or neighbourhood.
Name withheld
Unfair agenda
What a miserable place Britain is
becoming. My tax rate is higher
than you describe because we
have a second home, pay private
school fees and have private
health care. It feels like I have no
disposable income at all. Theres
also a myth about child benefit.
It was originally a tax allowance
but was turned into a benefit so
the poor would also get it. Now
the rich are having it taken away.
The nature of the debate is that
people think the rich should pay
more because they can afford it.
Its fuelled by a fairness agenda.
The brightest will be heading
either to the East or the US in
the next few years.
Simon McLeod
Speak your mind
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EWAN WATT
LON GD ONCE FIX AM...........1682.50 -3.00
SILVER LDN FIX AM ..................33.29 0.40
MAPLE LEAF 1 OZ ....................35.96 0.49
LON PLATINUM AM................1620.00 -12.00
LON PALLADIUM AM...............675.00 -13.00
ALUMINIUM CASH .................2202.00 -51.00
COPPER CASH ......................8335.00 -166.00
LEAD CASH...........................2068.00 -54.00
NICKEL CASH......................18695.00 -540.00
TIN CASH.............................22675.00 -225.00
ZINC CASH ............................2007.50 -60.00
BRENT SPOT INDEX................122.65 -1.28
SOYA .....................................1329.75 10.50
COCOA..................................2316.00 2.00
COFFEE...................................192.95 -8.55
KRUG.....................................1742.50 4.10
WHEAT ....................................165.25 -1.50
AIR LIQUIDE........................................95.95 0.45 100.65 80.90
ALLIANZ..............................................86.89 0.10 107.45 56.16
ANHEUS-BUSCH INBEV ....................50.90 0.70 51.43 33.85
ARCELORMITTAL...............................14.52 0.06 26.85 10.47
AXA......................................................11.83 0.11 15.97 7.88
BANCO SANTANDER...........................6.00 0.05 8.42 4.94
BASF SE..............................................63.01 0.59 70.22 42.19
BAYER.................................................53.33 0.33 59.44 35.36
BBVA......................................................6.31 -0.03 8.81 4.94
BMW ....................................................68.27 1.25 73.85 43.49
BNP PARIBAS.....................................35.67 0.67 55.44 22.72
CARREFOUR ......................................17.62 -0.12 29.25 14.66
CRH PLC .............................................15.09 -0.21 17.03 10.28
DAIMLER.............................................44.04 0.46 53.95 29.02
DANONE..............................................51.55 0.97 53.16 41.92
DEUTSCHE BANK..............................33.98 0.65 46.33 20.79
DEUTSCHE BOERSE .........................47.01 1.05 57.68 35.65
DEUTSCHE TELEKOM.........................8.53 0.05 11.38 7.88
E.ON.....................................................16.75 -0.22 23.58 12.50
ENEL......................................................3.04 -0.01 4.86 2.78
ENI .......................................................17.22 -0.05 18.18 11.83
FRANCE TELECOM............................11.02 0.01 15.98 10.92
GDF SUEZ ...........................................19.47 0.16 28.98 17.65
GENERALI ASS...................................12.58 0.20 16.44 10.34
IBERDROLA..........................................4.34 -0.04 5.95 4.16
INDITEX ...............................................66.97 0.35 70.15 50.92
ING GROEP CVA...................................6.57 0.06 9.50 4.21
INTESA SANPAOLO.............................1.46 0.04 2.31 0.85
KON.PHILIPS ELECTR.......................15.04 0.09 24.10 12.01
L'OREAL..............................................86.77 0.92 91.24 68.83
LVMH..................................................125.95 1.35 132.65 94.16
MUNICH RE.......................................106.45 0.80 120.80 77.80
NOKIA....................................................3.84 0.09 6.36 3.33
REPSOL YPF.......................................19.35 -0.04 24.90 17.31
RWE.....................................................34.31 -0.14 48.29 21.15
SAINT-GOBAIN...................................34.09 0.49 47.64 26.07
SANOFI ................................................56.61 0.41 58.08 42.85
SAP......................................................50.79 0.04 51.82 32.88
SCHNEIDER ELECTRIC.....................48.83 0.35 61.83 35.00
SIEMENS .............................................73.34 0.79 99.39 62.13
SOCIETE GENERALE.........................23.78 0.78 49.47 14.32
TELECOM ITALIA..................................0.85 0.01 1.15 0.70
TELEFONICA ......................................12.39 -0.04 18.34 12.33
TOTAL..................................................41.49 -0.12 44.55 29.40
UNIBAIL-RODAMCO SE...................144.65 1.25 162.95 123.30
UNICREDIT............................................4.00 0.12 12.44 2.20
UNILEVER CVA...................................25.06 0.13 27.16 20.90
VINCI ....................................................38.40 0.64 45.48 28.46
VIVENDI ...............................................13.85 0.30 21.37 13.54
VOLKSWAGEN VORZ ......................136.80 0.35 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5791.41 25.61 0.44
FTSE 250 INDEX. . . . . . . . 11287.14 143.04 1.28
FTSE UK ALL SHARE . . . . 3002.91 16.37 0.55
FTSE AIMALL SH . . . . . . . . 795.49 7.63 0.97
DOWJONES INDUS 30 . . 12837.33 78.18 0.61
S&P 500 . . . . . . . . . . . . . . . 1352.63 9.27 0.69
NASDAQ COMPOSITE . . . 2935.69 25.37 0.87
FTSEUROFIRST 300 . . . . . 1058.45 6.34 0.60
NIKKEI 225 . . . . . . . . . . . . . 9576.06 -61.57 -0.64
DAX 30 PERFORMANCE. . 6671.11 38.00 0.57
CAC 40 . . . . . . . . . . . . . . . . 3392.33 29.77 0.89
SHANGHAI SE INDEX . . . . 2394.79 -15.65 -0.65
HANG SENG. . . . . . . . . . . 20627.78 -178.47 -0.86
S&P/ASX 20 INDEX . . . . . . 2459.20 0.00 0.00
ASX ALL ORDINARIES . . . 4234.40 0.00 0.00
BOVESPA SAO PAOLO. . 66016.76 902.61 1.39
ISEQ OVERALL INDEX . . . 3148.63 16.06 0.51
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 822.62 -0.14 -0.02
SWISS MARKET INDEX. . . 6102.54 55.01 0.91
Price Chg %chg
3M........................................................85.47 0.52 98.19 68.63
ABBOTT LABS ...................................56.26 -0.09 57.52 46.29
ALCOA ..................................................9.55 0.08 18.47 8.45
ALTRIA GROUP..................................30.10 0.02 30.40 23.20
AMAZON.COM..................................183.77 2.68 246.71 160.59
AMERICAN EXPRESS........................52.27 0.53 54.45 41.30
AMGEN INC.........................................66.95 0.41 70.00 47.66
APPLE...............................................530.69 0.43 548.21 310.50
AT&T....................................................30.88 0.16 31.94 27.27
BANK OF AMERICA.............................8.02 0.31 14.70 4.92
BERKSHIRE HATAW B.......................78.82 0.35 86.66 65.35
BOEING CO.........................................73.52 0.96 80.65 56.01
CATERPILLAR..................................108.28 2.35 116.95 67.54
CHEVRON.........................................109.46 0.61 110.99 86.68
CISCO SYSTEMS................................19.41 -0.07 20.49 13.30
CITIGROUP.........................................33.24 1.12 46.90 21.40
COCA-COLA.......................................68.79 0.03 71.77 61.29
COMCAST CLASS A..........................29.24 0.32 29.92 19.19
CONOCOPHILLIPS.............................77.02 0.57 81.80 58.65
CVS/CAREMARK................................44.71 -0.08 45.39 31.30
DU PONT(EI) DE NMR........................50.23 0.20 57.50 37.10
EXXON MOBIL....................................85.83 -0.03 88.13 63.47
GENERAL ELECTRIC.........................18.77 0.35 20.86 14.02
GOOGLE A........................................606.80 1.84 670.25 473.02
HEWLETT PACKARD.........................24.36 0.19 43.45 19.92
HOME DEPOT.....................................47.39 1.00 48.07 28.13
IBM.....................................................197.77 0.51 201.19 151.71
INTEL CORP .......................................26.91 0.31 27.50 19.16
J.P.MORGAN CHASE.........................39.95 0.63 47.80 27.85
JOHNSON & JOHNSON.....................64.30 -0.05 68.05 55.76
KRAFT FOODS A................................37.83 -0.44 39.06 24.30
MC DONALD'S CORP ......................100.18 0.29 102.22 72.89
MERCK AND CO. NEW......................37.31 -0.13 39.43 29.47
MICROSOFT........................................31.84 0.29 32.44 23.65
OCCID. PETROLEUM.........................99.89 -1.14 117.89 66.36
ORACLE CORP...................................30.22 0.28 36.50 24.72
PEPSICO.............................................62.62 0.34 71.89 58.50
PFIZER ................................................21.37 0.11 22.17 16.63
PHILIP MORRIS INTL .........................84.07 0.01 85.43 60.45
PROCTER AND GAMBLE ..................66.58 -0.26 67.77 56.57
QUALCOMM INC ................................62.72 1.16 63.81 45.98
SCHLUMBERGER ..............................74.70 0.91 95.53 54.79
TRAVELERS CIES..............................56.87 -0.12 64.17 45.97
UNITED TECHNOLOGIE ....................82.57 1.18 91.83 66.87
UNITEDHEALTH GROUP...................54.39 -0.07 56.16 41.27
VERIZON COMMS ..............................38.87 0.18 40.48 32.28
VISA CL A..........................................115.64 0.80 119.36 70.45
WAL-MART STORES..........................59.86 0.90 62.63 48.31
WALT DISNEY CO ..............................41.75 -0.25 44.34 28.19
WELLS FARGO & CO.........................30.41 0.31 32.97 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 ..................0.262 0.00
LIBOR Euro - 12 months ................1.547 0.00
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................1.054 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.100 0.02
European repo rate.........................0.126 0.00
Euro Euribor ....................................0.320 0.00
The vix index ...................................19.47 -1.40
The baItic dry index ........................787.0 5.00
Markit iBoxx...................................243.61 0.31
Markit iTraxx..................................141.18 6.82
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .309.9 5.8 340.8 248.1
Chemring Group . . . .411.0 5.2 736.5 368.8
Cobham . . . . . . . . . . .209.7 23.4 236.5 165.9
Meggitt . . . . . . . . . . . .387.3 6.8 400.2 304.9
QinetiQ Group . . . . . .149.9 -0.2 153.2 101.5
RoIIs-Royce HoIdi . . .813.0 12.5 826.5 557.5
Senior . . . . . . . . . . . . .190.5 4.3 201.0 132.6
UItra EIectronics . . .1694.0 17.0 1752.0 1305.0
GKN . . . . . . . . . . . . . .206.5 0.9 245.0 157.0
BarcIays . . . . . . . . . . .239.0 0.1 308.9 138.9
HSBC HoIdings . . . . .550.7 2.3 670.6 463.5
LIoyds Banking Gr . . .34.3 0.1 62.4 21.8
RoyaI Bank of Sco . . .26.2 -0.0 44.4 17.3
Standard Chartere .1555.5 -9.5 1690.0 1169.5
AG Barr . . . . . . . . . .1178.0 12.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .378.6 -1.4 444.0 289.9
Diageo . . . . . . . . . . .1510.5 2.0 1527.5 1112.0
SABMiIIer . . . . . . . . .2568.0 13.0 2589.5 1979.0
AZ EIectronic Mat . . .284.5 5.2 338.1 206.1
Croda Internation . .2149.0 42.0 2182.0 1556.0
EIementis . . . . . . . . . .177.6 0.6 187.4 107.5
Johnson Matthey . .2255.0 43.0 2351.0 1523.0
Victrex . . . . . . . . . . .1308.0 26.0 1590.0 1025.0
YuIe Catto & Co . . . . .203.2 4.2 253.0 148.0
C/$ 1.3145 0.0027
C/ 0.8350 0.0008
C/ 106.48 0.4553
/C 1.1976 0.0009
/$ 1.5741 0.0019
/ 127.70 0.0002
FTSE 100
5791.41
25.61
FTSE 250
11287.14
143.04
FTSE ALLSHARE
3002.91
16.37
DOW
12837.48
78.33
NASDAQ
2935.69
25.37
S&P 500
1352.63
9.27
Smith (DS) . . . . . . . . .173.0 3.0 183.4 113.3
Smiths Group . . . . .1053.0 17.0 1353.0 869.5
Brown (N.) Group . . .233.5 0.8 304.5 227.0
Carpetright . . . . . . . . .612.0 12.0 770.5 375.0
Debenhams . . . . . . . . .71.3 -0.5 74.8 51.2
Dignity . . . . . . . . . . . .805.0 -4.0 854.5 690.0
Dixons RetaiI . . . . . . .14.6 -0.4 19.9 9.4
DuneImGroup . . . . . .483.8 0.8 524.5 383.9
HaIfords Group . . . . .305.8 2.6 405.9 268.6
Home RetaiI Group . .103.2 1.6 228.5 72.5
Inchcape . . . . . . . . . .365.0 5.1 425.4 268.1
JD Sports Fashion . .776.0 -4.0 1030.0 570.0
Kesa EIectricaIs . . . . .68.6 -2.6 151.4 60.2
Kingfisher . . . . . . . . .277.4 2.9 287.1 217.0
Marks & Spencer G . .351.5 1.7 402.2 301.8
Next . . . . . . . . . . . . .2731.0 23.0 2810.0 1868.0
Sports Direct Int . . . .280.5 1.8 296.1 179.6
WH Smith . . . . . . . . . .527.0 9.0 559.0 433.8
Smith & Nephew . . . .622.0 11.5 718.5 521.0
Synergy HeaIth . . . . .822.0 -0.5 981.0 808.0
Barratt DeveIopme . .137.9 1.1 149.2 67.5
BeIIway . . . . . . . . . . . .795.0 11.5 820.5 540.5
BerkeIey Group Ho .1357.0 35.0 1394.0 960.0
BaIfour Beatty . . . . . .265.5 -1.5 354.0 214.6
CRH . . . . . . . . . . . . .1263.0 -22.0 1687.0 1053.0
GaIIiford Try . . . . . . . .595.0 -5.0 607.0 332.8
Kier Group . . . . . . . .1195.0 12.0 1489.0 1097.0
Drax Group . . . . . . . .516.5 21.4 581.5 371.9
SSE . . . . . . . . . . . . . .1293.0 1.0 1423.0 1184.0
Domino Printing S . .656.0 -1.0 703.0 434.3
HaIma . . . . . . . . . . . . .386.7 10.0 429.6 306.3
Laird . . . . . . . . . . . . . .186.7 2.1 207.0 127.9
Morgan CrucibIe C . .338.1 8.1 360.0 224.0
Oxford Instrument .1156.0 11.0 1175.0 600.5
Renishaw . . . . . . . . .1369.0 -30.0 1886.0 800.0
Spectris . . . . . . . . . .1711.0 26.0 1773.0 1039.0
Aberforth SmaIIer . . .631.0 12.5 714.0 494.0
AIIiance Trust . . . . . .367.0 1.5 392.7 310.2
Bankers Inv Trust . . .416.6 2.1 428.0 346.5
BH GIobaI Ltd. GB .1195.0 -2.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.6 -0.1 20.2 16.3
BH Macro Ltd. GBP 2056.0 15.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.8 0.1 20.2 16.2
BIackRock WorId M .698.0 -11.0 815.5 574.5
BIueCrest AIIBIue . . .164.6 -0.2 176.2 160.6
British Assets Tr . . . .127.0 0.6 139.4 109.0
British Empire Se . . .439.7 1.7 533.0 404.0
CaIedonia Investm .1524.0 -1.0 1800.0 1337.0
City of London In . . .294.0 1.0 306.9 257.0
Dexion AbsoIute L . .137.6 0.4 150.7 130.0
Edinburgh Dragon . .248.1 1.6 253.0 201.4
Edinburgh Inv Tru . . .490.0 3.9 496.5 414.9
EIectra Private E . . .1670.0 3.0 1755.0 1287.0
F&C Inv Trust . . . . . .307.2 0.7 327.9 261.5
FideIity China Sp . . . . .83.9 0.6 114.3 70.0
FideIity European . .1100.0 10.0 1287.0 912.0
HeraId Inv Trust . . . . .512.5 5.5 545.5 419.0
HICL Infrastructu . . . .119.0 0.5 121.3 112.7
Impax Environment .101.5 0.3 125.4 88.5
John Laing Infras . . .109.5 -0.4 110.6 103.8
JPMorgan American .929.0 9.0 940.5 721.5
JPMorgan Asian In . .197.6 0.2 244.0 170.1
JPMorgan Emerging .556.5 -1.5 610.5 480.1
JPMorgan European .715.0 2.5 983.5 624.0
JPMorgan Indian I . . .368.0 1.8 459.0 313.1
JPMorgan Russian .577.0 4.5 741.0 415.1
Law Debenture Cor . .376.4 1.1 386.4 321.0
MercantiIe Inv Tr . . .1009.0 11.0 1119.0 823.0
Merchants Trust . . . .377.0 0.2 431.8 341.5
Monks Inv Trust . . . .334.2 0.2 367.9 298.1
Murray Income Tru . .653.5 -0.5 673.0 568.0
Murray Internatio . . .975.0 6.0 991.5 818.5
PerpetuaI Income . . .268.9 2.4 276.0 236.5
PersonaI Assets T .34840.0-160.0 35350.030210.0
PoIar Cap TechnoI . .376.8 4.6 389.2 299.5
RIT CapitaI Partn . . .1220.0 16.0 1360.0 1173.0
Scottish Inv Trus . . . .479.9 2.9 524.0 417.0
Scottish Mortgage . .675.0 2.5 781.0 565.0
SVG CapitaI . . . . . . . .275.6 3.7 281.4 165.1
TempIe Bar Inv Tr . . .933.0 7.0 952.0 791.0
TempIeton Emergin .610.0 2.5 684.5 497.0
TR Property Inv T . . .150.5 0.5 206.1 136.2
TR Property Inv T . . . .68.1 0.3 94.0 59.8
Witan Inv Trust . . . . .482.6 -4.4 533.0 401.5
3i Group . . . . . . . . . . .190.2 -1.1 307.5 166.9
3i Infrastructure . . . .122.4 0.8 125.2 113.4
Aberdeen Asset Ma .246.6 6.8 265.8 167.8
Ashmore Group . . . .378.8 2.9 420.0 301.5
Brewin DoIphin Ho . .162.0 0.6 183.3 113.7
CameIIia . . . . . . . . . .9875.0 325.010950.0 8800.0
CharIes TayIor Co . . .131.0 0.5 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .364.1 2.5 440.0 304.3
CIose Brothers Gr . . .753.5 13.0 875.0 590.0
CoIIins Stewart H . . . .97.3 0.3 99.3 48.5
F&C Asset Managem .71.0 0.5 85.5 56.1
Hargreaves Lansdo .461.8 2.7 646.5 402.5
HeIphire Group . . . . . . .2.1 -0.1 17.1 1.4
Henderson Group . . .116.5 2.9 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .394.4 13.8 541.5 311.6
IG Group HoIdings . .456.7 8.7 502.5 393.6
Intermediate Capi . . .265.8 4.6 345.0 197.9
InternationaI Per . . . .244.5 4.4 388.8 148.5
InternationaI Pub . . . .119.8 0.7 121.5 108.6
Investec . . . . . . . . . . .397.2 3.8 522.0 318.4
IP Group . . . . . . . . . . .114.0 2.0 116.0 36.0
Jupiter Fund Mana . .242.1 2.5 328.7 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .58.6 0.0 64.8 54.0
London Finance & . . .19.5 0.0 23.5 18.2
London Stock Exch .883.5 3.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.0 -0.5 19.8 8.9
Man Group . . . . . . . . .146.1 0.3 284.4 104.5
Paragon Group Of . .182.5 -0.7 206.1 134.6
Provident Financi . .1116.0 10.0 1140.0 915.0
Rathbone Brothers .1228.0 -2.0 1290.0 977.0
Record . . . . . . . . . . . . .10.9 -0.4 35.5 10.9
RSM Tenon Group . . . .8.7 -0.0 44.8 5.6
Schroders . . . . . . . .1561.0 37.0 1906.0 1183.0
Schroders (Non-Vo .1235.0 37.0 1554.0 970.0
TuIIett Prebon . . . . . .328.1 10.5 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 40.0
BT Group . . . . . . . . . .211.5 0.4 217.8 161.0
CabIe & WireIess . . . .32.6 -0.3 51.2 30.3
CabIe & WireIess . . . .33.6 2.3 72.6 14.2
COLT Group SA . . . . .99.9 -1.6 154.0 84.1
KCOM Group . . . . . . . .69.5 0.6 84.0 58.5
TaIkTaIk TeIecom . . .139.8 0.3 150.0 118.9
TeIecomPIus . . . . . . .617.5 5.5 802.0 440.0
Booker Group . . . . . . .74.4 1.4 80.0 54.5
Greggs . . . . . . . . . . . .551.0 7.0 556.0 445.0
Morrison (Wm) Sup .284.8 1.5 328.0 268.5
Ocado Group . . . . . . .102.7 2.5 237.0 52.9
Sainsbury (J) . . . . . . .292.9 3.9 371.0 263.5
Tesco . . . . . . . . . . . . .311.4 1.0 420.1 310.0
Associated Britis . . .1186.0 8.0 1228.0 940.0
Cranswick . . . . . . . . .801.5 9.5 842.5 588.5
Dairy Crest Group . . .326.5 5.3 409.7 311.0
Devro . . . . . . . . . . . . .317.4 2.8 318.2 232.0
Tate & LyIe . . . . . . . . .694.0 0.5 720.5 520.0
UniIever . . . . . . . . . .2038.0 10.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .597.0 17.5 664.0 413.5
Centrica . . . . . . . . . . .307.6 1.5 337.6 278.8
InternationaI Pow . . .359.4 -1.8 366.1 279.4
NationaI Grid . . . . . . .645.5 -3.5 652.5 543.5
Pennon Group . . . . . .723.0 1.5 737.5 584.5
Severn Trent . . . . . .1581.0 12.0 1600.0 1375.0
United UtiIities . . . . .615.5 2.0 637.0 551.0
Cookson Group . . . . .667.0 13.0 724.5 395.8
Rexam . . . . . . . . . . . .411.8 6.6 417.0 299.8
RPC Group . . . . . . . .370.0 3.0 393.2 231.5
Price Chg High Low
Bovis Homes Group .500.5 4.9 514.0 326.5
Persimmon . . . . . . . .655.0 20.5 706.5 374.0
Reckitt Benckiser . .3515.0 46.0 3597.0 3015.0
Redrow . . . . . . . . . . . .130.6 3.6 136.2 103.5
TayIor Wimpey . . . . . . .46.8 0.3 52.7 28.7
Bodycote . . . . . . . . . .403.8 18.5 420.0 225.6
Fenner . . . . . . . . . . . .459.7 4.2 481.8 280.0
IMI . . . . . . . . . . . . . . . .951.5 18.5 1119.0 636.5
MeIrose . . . . . . . . . . .375.0 4.9 393.4 268.0
Northgate . . . . . . . . . .247.8 -1.2 346.7 190.9
Rotork . . . . . . . . . . .1998.0 36.0 2099.0 1501.0
Spirax-Sarco Engi . .2010.0 4.0 2101.0 1649.0
Weir Group . . . . . . .1944.0 21.0 2236.0 1375.0
Evraz . . . . . . . . . . . . .391.0 11.0 460.5 315.0
Ferrexpo . . . . . . . . . . .302.6 7.7 499.0 238.7
TaIvivaara Mining . . .274.9 9.8 589.0 195.2
BBAAviation . . . . . . .202.5 2.1 223.4 156.0
Stobart Group Ltd . . .130.5 -0.1 152.8 112.0
AdmiraI Group . . . . .1144.0 104.0 1754.0 787.0
AmIin . . . . . . . . . . . . .334.6 0.1 427.0 270.6
BeazIey . . . . . . . . . . . .137.0 0.9 151.8 109.6
Informa . . . . . . . . . . . .424.8 6.5 446.0 313.9
ITE Group . . . . . . . . . .230.0 1.5 258.2 157.7
ITV . . . . . . . . . . . . . . . . .84.3 1.1 91.0 51.7
Johnston Press . . . . . . .6.8 0.0 12.3 4.1
MecomGroup . . . . . .174.3 2.0 310.0 134.5
Moneysupermarket. .127.0 1.3 130.0 85.5
Pearson . . . . . . . . . .1194.0 4.0 1255.0 1038.0
PerformGroup . . . . .272.1 2.1 283.4 150.0
Reed EIsevier . . . . . .535.0 4.0 578.0 461.3
Rightmove . . . . . . . .1370.0 35.0 1446.0 933.0
STV Group . . . . . . . . .105.9 3.4 168.0 76.3
Tarsus Group . . . . . .139.5 2.0 165.0 119.5
Trinity Mirror . . . . . . . .42.3 -0.8 59.0 37.5
UBM . . . . . . . . . . . . . .586.0 13.5 621.5 416.0
UTV Media . . . . . . . . .144.0 2.0 150.0 92.5
WiImington Group . . .99.0 -2.0 164.5 78.5
WPP . . . . . . . . . . . . . .809.5 10.5 828.0 578.0
YeII Group . . . . . . . . . . .4.3 -0.1 11.0 3.4
African Barrick G . . .429.9 -2.1 616.5 393.5
AIIied GoId Minin . . . .117.2 1.7 263.3 34.4
AngIo American . . .2535.5 33.5 3344.0 2138.5
AngIo Pacific Gro . . .327.0 1.8 343.3 237.9
Antofagasta . . . . . . .1230.0 -7.0 1491.0 900.5
Aquarius PIatinum . .137.0 6.1 381.1 130.9
BHP BiIIiton . . . . . . .1960.0 26.0 2631.5 1667.0
CatIin Group Ltd. . . .410.3 4.7 449.0 334.0
Hiscox Ltd. . . . . . . . . .406.9 9.8 424.7 340.5
Jardine LIoyd Tho . . .685.0 2.5 764.5 576.0
Lancashire HoIdin . . .761.5 11.5 790.5 532.5
RSA Insurance Gro . .108.3 -0.1 139.8 99.6
Aviva . . . . . . . . . . . . . .351.2 1.0 477.9 275.3
LegaI & GeneraI G . . .118.5 1.4 123.8 89.8
OId MutuaI . . . . . . . . .158.0 1.9 162.2 98.1
Phoenix Group HoI . .556.0 4.5 688.0 451.1
PrudentiaI . . . . . . . . .702.5 2.5 777.0 509.0
ResoIution Ltd. . . . . .260.8 -0.8 316.1 229.5
St James's PIace . . . .345.0 -0.9 376.0 294.0
Standard Life . . . . . . .233.3 3.1 244.7 172.0
4Imprint Group . . . . .240.0 -5.0 295.0 200.0
Aegis Group . . . . . . .174.0 3.0 176.1 115.7
BIoomsbury PubIis . .115.0 0.1 138.0 91.3
British Sky Broad . . .691.5 8.0 850.0 618.5
Centaur Media . . . . . . .42.0 -0.5 63.6 32.5
Chime Communicati .224.5 -3.5 298.5 163.0
Creston . . . . . . . . . . . .58.5 -3.0 121.0 47.0
DaiIy MaiI and Ge . . .427.0 4.4 520.0 343.4
Euromoney Institu . .700.5 5.5 772.0 522.5
Future . . . . . . . . . . . . . .12.3 0.0 26.5 8.3
Haynes PubIishing . .215.0 3.0 257.0 192.0
Huntsworth . . . . . . . . .46.5 0.5 76.3 32.3
Bumi . . . . . . . . . . . . . .746.0 -0.47 755.0 740.5
Centamin (DI) . . . . . . . .82.0 2.8 154.2 78.4
Eurasian NaturaI . . .655.0 13.5 973.5 522.0
FresniIIo . . . . . . . . . .1839.0 9.0 2150.0 1302.0
GemDiamonds Ltd. .244.0 2.0 291.0 179.8
GIencore Internat . . .402.3 1.0 531.1 348.0
HochschiId Mining . .480.8 5.2 663.5 365.9
Kazakhmys . . . . . . . .942.0 18.0 1493.0 730.0
Kenmare Resources . .51.6 1.0 61.5 31.0
Lonmin . . . . . . . . . . .1042.0 24.0 1827.0 941.0
New WorId Resourc .478.6 -9.6 1060.0 409.4
PetropavIovsk . . . . . .635.0 9.5 1073.0 543.5
PoIymetaI Interna . . .967.5 16.0 1175.0 877.0
RandgoId Resource 6935.0 75.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3370.0 14.0 4595.0 2712.5
Vedanta Resources 1344.0 -1.0 4196.7 1331.0
Xstrata . . . . . . . . . . .1127.0 1.5 1550.0 764.0
Inmarsat . . . . . . . . . . .461.3 28.1 628.5 389.3
Vodafone Group . . . .170.0 0.0 182.7 155.1
Genesis Emerging . .503.5 4.5 548.5 424.0
Afren . . . . . . . . . . . . . .131.5 5.9 171.2 73.6
BG Group . . . . . . . . .1465.0 -5.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .492.8 2.7 504.6 363.2
Cairn Energy . . . . . . .319.7 -1.3 531.8 291.9
EnQuest . . . . . . . . . . .120.8 1.7 158.5 85.7
Essar Energy . . . . . .107.0 5.4 509.0 100.4
ExiIIon Energy . . . . . .198.5 -2.9 469.7 184.2
Heritage OiI . . . . . . . .159.6 1.6 332.2 157.4
Ophir Energy . . . . . . .418.6 11.6 434.0 184.5
Premier OiI . . . . . . . . .412.5 2.8 520.5 310.0
RoyaI Dutch SheII . .2247.5 -3.5 2402.0 1883.5
RoyaI Dutch SheII . .2277.5 -1.0 2489.0 1890.5
SaIamander Energy .233.6 0.2 317.6 182.3
Soco Internationa . . .316.0 0.5 400.0 278.0
TuIIow OiI . . . . . . . . .1445.0 32.0 1601.0 945.5
Amec . . . . . . . . . . . .1106.0 27.0 1207.0 740.5
Hunting . . . . . . . . . . .802.5 14.5 845.5 530.0
Kentz Corporation . .455.7 -1.0 508.0 347.0
LampreII . . . . . . . . . . .326.5 0.6 395.2 220.7
Petrofac Ltd. . . . . . .1591.0 46.0 1603.0 1108.0
Wood Group (John) .701.5 -4.0 763.5 469.9
Burberry Group . . . .1437.0 44.0 1600.0 1092.0
PZ Cussons . . . . . . . .306.7 6.6 387.9 285.0
Supergroup . . . . . . . .522.0 6.0 1600.0 435.2
AstraZeneca . . . . . .2824.0 18.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .349.7 3.1 361.8 210.3
Genus . . . . . . . . . . . .1316.0 4.0 1368.0 853.5
GIaxoSmithKIine . . .1409.5 9.5 1497.0 1138.5
Hikma Pharmaceuti .729.0 6.0 869.0 555.5
Shire PIc . . . . . . . . . .2175.0 8.0 2300.0 1748.0
CapitaI & Countie . . .191.1 1.4 203.7 153.4
Daejan HoIdings . . .2926.0 -34.0 3030.0 2282.0
F&C CommerciaI Pr .101.7 -0.3 108.0 92.6
Grainger . . . . . . . . . . .104.5 -0.8 133.2 77.3
London & Stamford .112.0 0.3 140.0 103.9
SaviIIs . . . . . . . . . . . . .361.8 -3.6 427.1 256.2
UK CommerciaI Pro . .72.7 -0.4 85.5 65.1
Unite Group . . . . . . . .195.1 -0.8 224.1 152.9
Big YeIIow Group . . .295.0 2.0 344.4 218.0
British Land Co . . . . .470.4 4.3 629.5 444.0
CapitaI Shopping . . .329.4 2.0 408.6 288.7
Derwent London . . .1701.0 17.0 1880.0 1400.0
Great PortIand Es . . .352.6 2.6 445.0 312.9
Hammerson . . . . . . . .390.0 1.8 490.9 345.2
Hansteen HoIdings . . .75.1 0.6 89.5 68.0
Land Securities G . . .688.5 11.5 885.0 612.0
SEGRO . . . . . . . . . . . .238.4 4.7 331.3 195.0
Shaftesbury . . . . . . . .492.8 8.8 539.0 441.2
Aveva Group . . . . . .1673.0 7.0 1799.0 1298.0
Computacenter . . . . .392.4 2.3 490.0 324.7
Fidessa Group . . . . .1585.0 -12.0 2109.0 1444.0
Invensys . . . . . . . . . . .200.0 3.0 357.3 180.9
Logica . . . . . . . . . . . . .89.2 1.8 144.8 59.0
Micro Focus Inter . . .444.3 1.5 458.4 242.9
Misys . . . . . . . . . . . . .337.7 -0.8 420.2 214.9
Sage Group . . . . . . . .297.4 0.0 312.4 231.7
SDL . . . . . . . . . . . . . . .712.0 -10.0 756.0 586.0
TeIecity Group . . . . . .689.0 1.0 706.0 450.5
Aggreko . . . . . . . . . .2171.0 46.0 2250.0 1395.5
Ashtead Group . . . . .254.2 6.7 259.2 99.4
Atkins (WS) . . . . . . . .770.0 14.5 820.0 490.2
Babcock Internati . . .741.0 6.5 758.0 550.5
Berendsen . . . . . . . . .521.0 4.0 568.0 402.7
BunzI . . . . . . . . . . . . .962.0 16.0 973.0 676.5
Cape . . . . . . . . . . . . . .458.0 12.7 591.5 295.0
Capita . . . . . . . . . . . . .738.5 3.5 785.0 611.5
CariIIion . . . . . . . . . . .302.5 -2.0 403.2 281.0
De La Rue . . . . . . . . .955.0 21.5 1001.0 730.0
DipIoma . . . . . . . . . . .385.0 -5.9 425.5 263.5
EIectrocomponents .239.3 4.6 294.9 182.2
Experian . . . . . . . . . . .929.5 19.0 960.0 665.0
FiItrona PLC . . . . . . . .446.0 3.0 451.9 293.0
G4S . . . . . . . . . . . . . . .285.3 3.8 291.3 219.9
Hays . . . . . . . . . . . . . . .81.0 1.3 128.0 58.9
Homeserve . . . . . . . .222.0 7.3 532.0 214.7
Howden Joinery Gr . .121.8 1.8 125.5 93.1
Interserve . . . . . . . . . .297.8 4.4 341.3 245.5
Intertek Group . . . . .2320.0 58.0 2372.0 1744.0
MichaeI Page Inte . . .464.1 21.1 567.0 323.0
Mitie Group . . . . . . . .263.0 1.9 271.0 195.9
PayPoint . . . . . . . . . . .580.0 5.5 593.0 395.0
Premier FarneII . . . . .209.2 2.4 305.2 144.5
Regus . . . . . . . . . . . . .102.7 -0.3 119.0 64.0
RentokiI InitiaI . . . . . . .73.4 -0.1 100.9 58.2
RPS Group . . . . . . . . .227.0 5.7 253.0 156.6
Serco Group . . . . . . .518.5 -0.5 597.5 458.0
Shanks Group . . . . . .103.5 0.0 130.9 90.8
SIG . . . . . . . . . . . . . . .111.7 1.3 153.5 77.0
Travis Perkins . . . . .1036.0 0.0 1090.0 715.0
WoIseIey . . . . . . . . .2338.0 37.0 2500.0 1404.0
ARM HoIdings . . . . . .549.5 14.0 645.0 464.0
CSR . . . . . . . . . . . . . .235.5 3.2 391.4 154.1
Imagination Techn . .601.5 22.0 630.5 296.9
Spirent Communica .151.0 -0.4 156.0 105.8
British American . .3126.0 -65.5 3223.0 2300.0
ImperiaI Tobacco . .2523.0 17.0 2534.0 1878.0
Betfair Group . . . . . . .885.0 4.0 1030.0 567.0
Bwin.party Digita . . .161.2 6.1 204.0 100.6
CarnivaI . . . . . . . . . .1876.0 32.0 2672.0 1742.0
Compass Group . . . .647.5 15.0 651.1 512.5
Domino's Pizza UK . .442.8 10.6 526.0 377.0
easyJet . . . . . . . . . . . .433.0 1.3 478.4 302.5
FirstGroup . . . . . . . . .286.9 4.4 371.3 280.8
Go-Ahead Group . . .1283.0 2.0 1598.0 1190.0
Greene King . . . . . . .502.0 7.4 521.5 410.0
InterContinentaI . . .1419.0 36.0 1450.0 955.0
InternationaI Con . . .163.2 2.5 258.7 132.0
JD Wetherspoon . . . .402.0 2.0 468.3 380.5
Ladbrokes . . . . . . . . .154.3 5.1 155.3 114.0
Marston's . . . . . . . . . . .96.0 1.8 112.0 84.6
MiIIennium& Copt . .484.0 6.2 552.0 371.2
MitcheIIs & ButIe . . . .256.6 3.3 336.8 215.6
NationaI Express . . .239.8 4.6 270.2 201.6
Rank Group . . . . . . . .130.8 0.1 153.7 109.5
Restaurant Group . . .286.2 6.5 335.0 254.9
Spirit Pub Compan . . .57.5 2.0 61.0 35.3
Stagecoach Group . .267.2 2.3 287.4 200.0
TUI TraveI . . . . . . . . . .188.0 -5.2 250.0 136.7
Whitbread . . . . . . . .1652.0 15.0 1737.0 1409.0
WiIIiamHiII . . . . . . . . .227.4 5.0 244.1 176.8
Abcam . . . . . . . . . . . .348.0 -10.5 460.0 320.0
Advanced MedicaI . . .84.3 -6.8 96.0 64.8
AIbemarIe & Bond . .345.0 -5.0 400.1 281.0
Amerisur Resource . .25.5 2.0 29.0 9.5
Andor TechnoIogy . .537.5 0.0 685.0 387.1
ArchipeIago Resou . . .65.8 0.0 79.0 55.5
ASOS . . . . . . . . . . . .1702.0 23.0 2468.0 1142.0
AureIian OiI & Ga . . . .18.3 0.3 89.5 16.0
Avanti Communicat .251.5 -5.8 515.0 245.5
BIinkx . . . . . . . . . . . . . .75.3 1.3 158.0 50.5
Borders & Souther . . .74.5 5.5 80.5 43.5
BowLeven . . . . . . . . . .85.0 -2.8 382.3 62.0
Brooks MacdonaId 1322.5 5.0 1372.5 940.0
CIuff GoId . . . . . . . . . . .94.3 -0.3 119.0 66.5
Cove Energy . . . . . . .209.0 3.0 242.0 61.0
Daisy Group . . . . . . .108.3 0.0 127.0 88.0
EMIS Group . . . . . . . .450.0 35.3 580.0 397.5
Faroe PetroIeum . . . .156.5 -8.3 183.3 130.0
GuIfsands PetroIe . . .152.0 -7.5 335.0 142.5
GWPharmaceuticaI . .93.0 -0.5 130.0 78.5
H&T Group . . . . . . . . .330.0 -1.8 395.0 285.0
Hargreaves Servic .1244.0 9.0 1258.0 855.0
HeaIthcare Locums . . . .2.8 0.1 2.8 2.6
Immunodiagnostic . .323.0 -3.3 1218.0 288.8
ImpeIIamGroup . . . .335.0 0.0 387.5 225.0
Iomart Group . . . . . . .135.0 -5.0 151.0 85.5
James HaIstead . . . . .506.0 1.0 517.5 410.0
London Mining . . . . .294.5 -3.3 436.5 257.5
Lupus CapitaI . . . . . .122.0 -2.0 150.0 86.0
M. P. Evans Group . .458.5 1.0 475.0 371.0
Majestic Wine . . . . . .423.0 4.0 510.0 315.0
May Gurney Integr . .285.0 2.0 302.0 234.0
Monitise . . . . . . . . . . . .37.0 0.8 40.0 20.5
MuIberry Group . . . .1910.0 42.0 1951.0 1220.0
Nanoco Group . . . . . . .75.3 6.0 93.3 38.0
NauticaI PetroIeu . . .335.0 3.8 444.3 223.5
NichoIs . . . . . . . . . . . .626.0 9.0 642.0 410.0
Numis Corporation . . .95.0 1.0 119.6 72.0
Pan African Resou . . .16.5 0.0 18.3 9.5
Patagonia GoId . . . . . .39.0 3.0 70.0 36.0
Prezzo . . . . . . . . . . . . .67.4 0.0 71.5 53.5
Pursuit Dynamics . . . .80.0 1.0 392.0 67.0
Rockhopper ExpIor .364.0 19.0 393.5 141.0
RWS HoIdings . . . . . .522.5 7.5 530.0 368.6
Secure Trust Bank .1062.5 0.0 1095.0 755.0
Songbird Estates . . .113.0 3.0 160.3 103.0
VaIiant PetroIeum . . .504.0 7.5 630.0 400.0
Young & Co's Brew . .675.0 7.5 712.0 565.0
Cobham . . . . . . . . . . .209.7 12.6
AdmiraI Group . . . . .1144.0 10.0
CabIe & WireIess W . .33.6 7.5
Inmarsat . . . . . . . . . . .461.3 6.5
Essar Energy . . . . . .107.0 5.3
Bodycote . . . . . . . . . .403.8 4.8
MichaeI Page Inter . .464.1 4.8
Afren . . . . . . . . . . . . .131.5 4.7
Aquarius PIatinum . .137.0 4.7
Drax Group . . . . . . . .516.5 4.3
Kesa EIectricaIs . . . . .68.6 -3.6
TUI TraveI . . . . . . . . . .188.0 -2.7
Dixons RetaiI . . . . . . .14.6 -2.5
Renishaw . . . . . . . . .1369.0 -2.1
British American T .3126.0 -2.1
New WorId Resource 478.6 -2.0
CRH . . . . . . . . . . . . .1263.0 -1.7
COLT Group SA . . . . .99.9 -1.6
BIackRock WorId Mi .698.0 -1.6
DipIoma . . . . . . . . . . .385.0 -1.5
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
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Tsy 5.250 12 . . . .101.20 -0.03 105.3 101.0
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% %
YES, THE AIRCRAFT IN
THE PHOTO IS FOR SALE!
www.hamlinjet.com +44 (0)1582 726760
Wealth Management | Markets
Moncler
Cyprienne coat
505
www.matches.com
Isabel M
arant khaki Ow
en linen
coat
3
2
0
www.liberty.co.uk
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atches.com
P
astels once again dominate for
Spring 2012. As pretty and deli-
cate as lavender, mint green and
candy pink may look on the
fashion pages, against the skin these
chalky pale tones can be draining. To
prevent pastels washing you out, team
them with a strong saturated block
colour or a bright white or deep black.
These stronger shades will help to
define your silhouette and provide a
counter-balancing edge to this girlie
palette. It also means you can wear
them now to get a little hit of spring
without catching a cold. Sandrina
Fasolis print blouses have the perfect
balance of baby blue and navy to flatter
all skin tones. Team with a classic black
trouser suit to lift your mood in the
office.
The new exotic fruit for this season
is a peplum: a short overskirt attached
to a fitted jacket, blouse or dress.
Mirroring the opening petals of a
flower, this is another ultra-feminine
Spring trend. The problem is that it can
make even the most boyish of us look
wide-hipped by adding extra volume at
the largest point of the body. To ensure
your peplumed piece flatters you,
choose one in a structured fabric which
clearly stands away from the skirt
underneath so you can still see the line
of your silhouette. If you are a pear
shape then avoid dresses and try
instead a peplum style jacket that nips
in very tightly at the waist to show off
your narrowest point, whilst softly con-
cealing the bum and hips. D-Exterior
has produced a beautiful jacket this
season in black but with a flash of
orange on the reverse of the peplum.
There was an air of the Roaring
Twenties across the Spring 2012 cat-
walks. An intoxicating mix of sequins
and embellishment, Gatsby glamour is
the modern choice for eveningwear.
The minimal shift shape is effortless
and chic whilst luxe detailing of the
fabric allows you to keep your acces-
sories simple. The problem is that this
is not a shape that traditionally works
well on curves. Slavishly following this
trend without factoring in your body
shape may result in a dress that is tight
and sparkly on all the wrong bits. The
trick is to find a modern shape that
nips in at the waist. Rachel Gilbert has
perfected the art of 1920s beading on
a waisted shift shape. Dont be afraid to
have a dress tailored slightly to better
suit your figure which is essential if
you are investing in true vintage you
want to enjoy rather than just point-
lessly displaying in your wardrobe.
With the fast approaching Olympics,
SportsLuxe is another key trend. We
suggest you approach this one with a
little caution. Overdone and you will
risk looking like Sporty Spice. Show
your enthusiasm for the worlds largest
sporting event by picking up on sporty
fabrics like grey jersey in classic shapes
that you already like. Zoe Jordans
Winston trousers which team olive silk
with soft jersey are a perfect example.
The same approach applies to the glob-
al traveller aesthetic, which draws on
strong prints, beading and traditional
crafts. To avoid looking like youve just
come back from your gap-year partake
by adding tribal inspired accessories
over classic outfits. Nocturne and
Rutzou have both created beautiful
necklaces which are an easy way to
add a little traveller spirit to your
wardrobe.
For your own City style questions con-
tact: Clare Rous & Kara Iland, Rous Iland
Members Boutique
www.rousiland.com, tel: 0845 003 8945
AN INTELLIGENT GUIDE TO SPRINGS KEY TRENDS
HOW TO GET
DRESSED IN
THE CITY
Clare Rous & Kara Iland
FOUNDERSOF ROUSILANDMEMBERS BOUTIQUE,
WWW.ROUSILAND.COM
Belt up
Bright
Beautiful
Lifestyle | Fashion
&
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jaeger.co.uk
MaxMara Snack
lightweight coat
620
www.matches.com
25
Spring coats are all about
peppy prints, pastels and a
good belt, says Zoe Strimpel
Reiss Cassidy
Cardigan coat
19
5
www.reiss.co.uk
Sound travels: Zoe Strimpel chooses the best portable speakers and a few besides
Sleeker speakers
A
t this moment, your brain is being
bombarded with data. Not just from
the conventional five senses, but
with information about your bal-
ance, hunger, the positions of your limbs and
the urgency of your next bowel movement.
To cope with this assault, the brain must
be ruthless in its compression. For instance,
light signals are summarised by the eye
into abstract descriptions of shape, colour
and movement before they even reach the
brain. What we perceive is inferred from
these hints, with obvious gaps filled in by
memory and intuition.
Of course, in the rush to discard unim-
portant information the brain can make the
occasional mistake. It can be as innocuous
as a misread word or a face glanced over
at a party, or as serious as a cyclist slipping
past at a junction.
What happens when we turn over such
decisions of salience to our computers?
Techniques for machine learning have been
studied for decades, and its proponents are
equipping computers with the ability to
learn strategies for decision-making from
input data, much as humans do.
And just as the brain seeks to sum-
marise its input, half the battle comes in
choosing features of the data to feed our
algorithm. For instance, let's say we have a
four-legged mammal. Knowing the sound it
makes will help us decide whether it is a
cat or a dog, but knowing if it has a wet
nose will not.
Google has recently introduced Priority
Inbox, which uses simple statistical tech-
niques to rank the messages that arrive at
your inbox in order of importance. Their
servers crunch your behaviour into fine-
grained features such as whether you gen-
erally reply to emails from your mother, or
how often you open message that contain
the word "Viagra". Google can then check
incoming messages for indicators of how
likely you are to read or reply to them.
In some cases, the cost of a false posi-
tive (a message from your mum being clas-
sified as spam) is rather low. But machine
learning has been applied in the field of
medicine, to the point where some systems
for the classification of skin blemishes can
outperform human doctors. In such cases,
a false negative (allowing someone with a
serious condition to remain undiagnosed)
has a much greater cost.
When we seek to emulate our human
capacity for learning, we must be mindful
of our human capacity for mistakes. We
are perhaps the most advanced system for
learning in the universe, and yet we require
decades of experience to reach a level
where our expert judgements can be trust-
ed. Machine learning is becoming more
widespread, from supplying your film rec-
ommendations to recognising your hand-
writing, and increasingly in helping
financial institutions tease out trends from
market data. In situations where the cost
of misjudgement is significant, who is to
blame if the machine makes a mistake?
Rhodri is a full-time software engineer
for Softwire Ltd, and records next-genera-
tion music as Uther Moads.
TECH CORNER
Rhodri Karim
Teaching
machines
to think
ALTEC LANSING IMT320
INMOTION SPEAKER SYSTEM
37.50, www.amazon.co.uk
Among other virtues, Altec Lansings
super-reliable, universally compatible
addition to the inMotion range comes
with a cover that doubles as a stand. Two
full-range neodymium drivers give pure,
distinct full-spectrum sound and good
bass, and the trademarked Audio
Alignment system offers good balance.
Lasts up to 24 hours with four AA batter-
ies; comes with an AC adaptor.
BOSE SOUNDDOCK PORTABLE
DIGITAL MUSIC SYSTEM
349, www.bose.co.uk
One of the top dogs of portable speakers, this
beauty from Bose offers the usual eight-hour
rechargeable lithium-ion battery. Whats less usual
is the spacious sound and trademark slim design,
which makes for an easy portability the docking
station even rotates out of sight for easy transit.
Compatible with iPod and iPhone.
PHILIPPE STARCK PARROT ZIKMU
999, www.iworld.co.uk
Another statement speaker (not portable at 3.5kg), this
beauty has analogue hi-fi input so you to connect your
CD players or TV set. A floor-level sub-woofer transmits
a rich sound thats intense but not overpowering. The
iPod/iPhone dock uses Apples digital encryption
chipset. Transfer is entirely digital and supports all digi-
tal formats, including Apple Lossless. Works with
Bluetooth and older equipment, too.
VEHO 360 PORTABLE
CAPSULE SPEAKER
14.95, www.veho-uk.com
A very cute machine, this
super-small but powerful
speaker works with any iPhone
or MP3 player and most mobile
phones as well (anything else with
a 3.5mm headphone socket).
Comes with a built-in USB cable
and a built-in 3.5mm jack with
dual-volume control. No unseemly
wires either: for an inexpensive
speaker, the Veho Capsule is very
good looking and the sound isnt
half bad.
Lifestyle | Technology
26
JAMBOX WIRELESS SPEAKER
127, jawbone.com
This is truly the hipster of portable speakers,
resembling the seasons latest must-have clutch
bag. For something so compact, the sound it
makes is impressive: with output capacity of
85 decibels, you can crank this baby right up.
Jambox is powered by a pair of proprietary,
highly sophisticated acoustic drivers,
unmatched in their ability to produce extreme
high and low frequencies from a single, ultra-
small dome speaker. You can use your phone
while it streams music, podcasts and sporting
events.
X-MINI MAX V1.1 CAPSULE
SPEAKER
39, store.x-mini.com
A portable speaker for people in the know, this X
very successfully bridges the gap between ultra-
portables and boombox. Using the same 36mm
drivers as the popular Mini 1.1, it delivers rich loud
sound in a smaller package than the Max II capsule.
Open and angled drivers enhance sound and give a
richer bass output. The Buddy-Jack function
means you can connect one mini capsule to another.
LIBRATONE LOUNGE AIRPLAY
SPEAKER
1,099, www.johnlewis.com
A gorgeous specimen from the Scandinavian
sound-masters, weve included this one not because
its portable (it isnt), but because its really rather
fabulous. In conjunction with a wireless connection
near the speaker, AirPlay lets you control your
entire library from your iPhone, iPad, Mac or PC.
Fix the speaker 20cm from a flat wall: the sound
waves then reflect off the wall to give you a 360
sound experience.
T
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DAVID WALLIAMS BIG SWIM: A
SPORT RELIEF SPECIAL BBC1, 9PM
Documentary looking back at David
Walliams charity challenge last
September, when he swam the length
of the River Thames.
WHITE HEAT
BBC2, 9PM
Drama charting the lives of seven
friends over six decades, beginning in
1965 as they move into a student flat
together, full of youthful expectation.
OUR MAN IN THE COSTAS
CHANNEL4, 10PM
A forest fire threatens the enclave of
Portman on the Costa Blanca, spark-
ing a evacuation, while Vice Consul Liz
has to help a grieving family.
BBC1
SKY SPORTS 1
7pmLive Premier League Darts
10.30pmTime of Our Lives
11.30pmRingside 12.30am
Premier League World 1am
Premier League Darts 4.30am
Ringside 5.30am-6amPremier
League World
SKY SPORTS 2
6pmLive World Golf
Championship 11pmWWE: Raw
1amWWE: NXT 2amTime of Our
Lives 3amNRL Fulltime 3.30am
Super Leagues Supermen
4.30am-5.30amThe Rugby Club
SKY SPORTS 3
6.30pmSuper Leagues
Supermen 7.30pmRugby Club
8.30pmRingside 9.25pmLive
Test Cricket 5am-6amRacemax
BRITISH EUROSPORT
7pmAlpine Skiing 8pmFight
Club 10pmPoker 11pm-12.30am
Cycling
ESPN
6pmLive UEFA Europa League
Football 8pmLive UEFA Europa
League Football 10pmOff the
Ball 10.30pmGoal! 11pmESPN
Kicks: FA Cup 11.15pmESPN
Kicks: Extra 11.30pmPress Pass
2012 12amUEFA Europa League
Highlights 2amFreestyle FIS
World Cup Magazine 2.30am
AMA Supercross 4.30amPress
Pass 2012 5amGoal!
5.30am-6amOff the Ball
SKY LIVING
7pmCriminal Minds 8pmRinger
9pmFILMFive 2011. 10.45pm
Unforgettable 11.45pmThe
Biggest Loser 12.45amBones
1.45amCriminal Minds 2.40am
Medium3.30amBones
4.20am-6amCSI: Crime Scene
Investigation
BBC THREE
7pmJunior Doctors: Your Life in
Their Hands 8pmDont Tell the
Bride 9pmPramface 9.30pm
White Van Man 10pmEastEnders
10.30pmRussell Howards Good
News 11pmFamily Guy 11.45pm
American Dad! 12.30am
Pramface 1amWhite Van Man
1.30amDont Tell the Bride
2.30amRussell Howards Good
News 3amThe Secrets of
Everything 3.30amBeing Human
4.30am-5.25amSun, Sex and
Suspicious Parents
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmBig Bang
Theory 8.30pmRules of
Engagement 9pmHow I Met
Your Mother 9.30pmHappy
Endings 10pmNoel Fieldings
Luxury Comedy 10.30pm
PhoneShop 11pmPete Versus Life
11.35pmRude Tube 12.05amBig
Bang Theory 1amScrubs 2am
How I Met Your Mother 2.25am
Noel Fieldings Luxury Comedy
2.50amRules of Engagement
3.10amGreek 3.55amUgly Betty
4.35am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8.30pmAmerican
Restoration 9pmIRT Deadliest
Roads: The Andes 10pmMud
Men 11pmPawn Stars 11.30pm
American Restoration 12am
Storage Wars 12.30amPawn
Stars 1amIRT Deadliest Roads:
The Andes 2amIce Road
Truckers 3amMud Men 4amThe
True Story 5am-6amAmerican
Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmWhale Wars 9pmAircrash
Confidential 10pmX-Machines
11pmStan Lees Superhumans
12amBear Grylls: Born
Survivor 1amAircrash
Confidential 2amX-Machines
3amWheeler Dealers: On the
Road 3.50amMythbusters
4.40amChris Barries Massive
Speed 5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pm14 Kids
and Counting 9pmI Didnt Know
I Was Pregnant 10pmThe Real
ER 11pmTrauma Unit 12amI
Didnt Know I Was Pregnant 1am
The Real ER 2amTrauma Unit
3amSupernanny US 4amA Baby
Story 5am-6amBaby Tales
SKY1
7pmThe Middle 7.30pmThe
Simpsons 8pmHawaii Five-0
9pmGlee 10pmHouse 11pm
Stella 12amVictoria Woods
Angina Monologues 1amNCIS:
Los Angeles 2amRoad Wars
2.30am99 Most Bizarre 3.20am
UK Border Force 4.15amRoad
Wars 5.05am-6amDream Lives
for Sale
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
A
B
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders; BBC News
8pmThe Great British
Countryside
9pmCHOICE David Walliams
Big Swim: A Sport Relief
Special
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time 11.35pm
This Week 12.20amSkiing
Weatherview12.25amSign Zone:
The Money Farmers Panorama
12.55amCountryfile 1.55am
Accused 2.55amHairy Bikers Best
of British 3.40am-6amBBC News
6pmEggheads: Quiz show,
hosted by Jeremy Vine.
6.30pmMy Life in Books
7pmTop Gear: With Blur
bassist Alex James.
8pmNatural World: Grizzlies
of Alaska: A grizzly bear
prepares her two cubs to
survive winter.
9pmCHOICE White Heat
10pmThe Sarah Millican
Television Programme
10.30pmNewsnight; Weather
11.20pmThe Tube
12.20amBBC News
3.40amClose 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale: Sam lies to
Lisa to protect Zak.
7.30pm2012 Pride and
Punishment: Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmKidnap and Ransom
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Jonathan Ross Show
11.35pmTake Me Out 12.40am
The Zone; ITV News Headlines
2.40am2012 Pride and
Punishment: Tonight 3.05amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmLocation, Location,
Location
9pmMake Bradford British
10pmCHOICE Our Man in The
Costas
11.05pmEmbarrassing Bodies
12.05amRandom Acts
12.10amCoppers 1.10amThe
Worlds Fattest Families and Me
2.05amWhatever Turns You On
2.10amThe Bible: A History
3.05amTime Team4amReaper
4.45am90210 5.25am-6.10am
Countdown
6pmHome and Away: A friend
of Caseys from juvenile
detention arrives in Summer
Bay.
6.30pm5 News at 6.30
7pmHoliday Heaven on Earth
7.30pmLive UEFA Europa
League Football: Manchester
United v Athletic Bilbao (Kick-
off 8.05pm).
10.15pmFILMMercenary for
Justice: Action thriller, starring
Steven Seagal. 2006.
12.05amSuperCasino
4amHouse Doctor 4.25am
Wildlife SOS 5.10amMichaelas
Wild Challenge
1 2 3 4 5
6 7 8
9
10 11 12 13
14
15 16 17
18 19
20 21
14 5 10
45
9 13
30 13
6 34
12 23 10
16 7
16 29
16 4
45
8 10 15
11
12
17
6
23
10
27
18
14
35
9
19
3
33
26
15
11
24
28
7
8
17
17
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Band of inelastic tissue
connecting a muscle
with a bone (5)
3 Comedy characterised by
improbable situations (5)
6 Former (4)
8 Part of a dress above
the waist (6)
10 Kingdom in the
South Pacic (5)
12 Lock of hair (5)
14 Type of hunting dog (7)
15 Flatsh (5)
16 Accurate (5)
18 Rivulet (6)
19 George ___, footballer
who died in 2005 (4)
20 Wears out (5)
21 Fish with a hook (5)
DOWN
1 Grunt (5)
2 Female sheep (3)
3 Wilderness at
the edge of a
settled area (8)
4 Say again (9)
5 Level betting (5)
7 Holder (9)
9 Marked by lack
of attention (8)
11 Acquire (3)
13 King (3)
15 Very small sh (5)
17 Identifying
appellation (5)
19 Garbage
container (3)
A
W
E
R
L T
O
M
K

4
S P U R T C U S P
W G H A L O I
A L U A G E S
B L I S S F U L T
O U O E A S E
B I D L E S I
S E C T I C D
A C L O S E S E T
T O G A O C A
Y S T O A A K
R A C E P E N N E
3 1 5 2 6 8 2 7
9 5 7 8 3 7 1 2
3 9 4 7 9
5 2 2 9 8 6
9 4 3 2 1 5 6 7 8
1 6 4 9
3 2 4 5 9 8 7 6 1
1 4 4 8 9 8
1 3 6 1 7
7 4 2 1 7 6 8 9
9 8 3 7 1 2 4 3
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter words were
COMPLAINT and COMPLIANT
Lifestyle | TV&Games
CITYA.M. 8 MARCH 2012 28
RED BULL chief Christian Horner
expects Englishman Jenson Button to
pose the biggest threat to his teams
dominance in the coming season.
Horner (inset) rates 2009 world
champion Button sterner com-
petition than his McLaren
team-mate and compatri-
ot Lewis Hamilton, who
won the title in 2008.
Red Bull and No1
driver Sebastian Vettel
are looking to make it
three constructors and
drivers championships
in a row when the season
starts in Australia next week.
Both Lewis and Jenson are
massively talented drivers, said
Horner. Jenson had a phenomenal
season last year, he seemed to get the
team around him and strung a set of
results together that was very impres-
sive. If he can carry that form forward
then he can be a real contender. Lewis
is a hugely talented individual. [He
had] a difficult season last year but
hell be looking to bounce back.
Pushed on which driver was the
biggest threat to Vettel and team-
mate Mark Webber, Horner said:
Probably Jenson.
McLaren aside, Horner expects
improvements from Mercedes
and Ferrari, despite
teething problems in pre-
season testing. Further
spice is added by the
return of another for-
mer world champion,
Kimi Raikkonen, fol-
lowing a two-year
absence, but Horner
insists Vettel, 24, is still
hungry and focused.
One of Sebastians assets is
his mind strength. Last year he made
very few mistakes. His confidence has
grown, his experience has grown, he
said. Sebastian really enjoys the his-
tory and what hes achieved at a real-
ly young age. He doesnt
underestimate our competitors.
Red Bull fear
Button more
than Lewis
BY FRANK DALLERES
FORMULA ONE
Sport
Results
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email sport@cityam.com
Button won the title in 2009 and Hamilton the previous year Picture: GETTY
Australia Melbourne, 16-18 Mar
Malaysia Sepang, 23-25 Mar
China Shanghai, 13-15 Apr
Bahrain Sakhir, 20-22 Apr
Spain Montmelo, 11-13 May
Monaco Monte Carlo, 25-27 May
Canada Montreal, 8-10 Jun
Europe Valencia, 22-14 Jun
Britain Silverstone, 6-8 Jul
Germany Hockenheim, 20-22 Jul
Hungary Hungaroring, 27-29 Jul
BelgiumSpa, 31 Aug-2 Sep
Italy Monza, 7-9 Sep
Singapore 21-23 Sep
Japan Suzuka, 5-7 Oct
Korea Yeongam, 12-14 Oct
India New Delhi, 26-28 Oct
Abu Dhabi Yas Marina, 2-4 Nov
United States Austin, 16-18 Nov
Brazil Interlagos, 23-25 Nov
CALENDAR | 2012 FORMULA ONE SEASON
BRITISH Olympic chiefs have hit
back at claims they are set to
lose next weeks landmark
legal case, which is expected
to determine whether sprint-
er Dwain Chambers can
compete at London 2012.
Sports lawyer Howard
Jacobs, who helped American
400m star LaShawn Merritt
overturn a doping ban, said
the Court of Arbitration for
Sport was not likely to rule in
favour of the British Olympic
Association.
But the BOA remain confident
that their right to omit any ath-
lete ever found guilty of a serious
doping offence will be upheld on
Monday, despite opposition from
the World Anti-Doping Agency.
Mr Jacobs is certainly enti-
tled to his point of view, a
BOA spokesperson told City
A.M. We are far more inter-
ested in the point of view of
the arbitration panel, and
we look forward to having
the opportunity to appear
before them on Monday.
Defeat for the BOA
would pave the way for
Chambers (left), who
served a two-year ban for
taking the steroid THG, to
launch a bid for gold on
home soil this summer.
BOA confident of win
in key Chambers case
ENGLAND have not progressed under
the guidance of their interim head
coach Stuart Lancaster and remain
negative and predictable, according
to his Leicester counterpart Matt
OConnor.
Since taking over from Martin
Johnson following last Octobers
World Cup, Lancaster has overseen
turgid victories away from home
against Scotland and Italy.
Lancaster tasted his first defeat
against Wales at Twickenham a fort-
night ago that means remote hopes of
a successful Six Nations defence now
hinge on Sundays clash with France
in Paris.
England have managed just two
tries both scored by Charlie
Hodgson as a result of charge-downs
in their three games so far and
OConnor believes the lack of attack-
ing threat is a result of Lancasters
handling of Leicesters out-of-favour
half-backs Toby Flood and Ben
Youngs.
We consistently score the most
tries in the Premiership because of
those two blokes, said OConnor in
reference to scrum-half Youngs and
No10 Flood, who were Englands first
choice half-back pairing throughout
last years Six Nations campaign.
The powers that be at England
have not fully appreciated what they
can offer a team. England don't want
creative players, they are just trying
not to lose.
There is nothing I have seen so far
[in the Six Nations] that indicates
England want to go out and beat
teams. Under the current structure, I
cannot see that changing.
Meanwhile, Lancaster has released
three players Joe Launchbury,
Charlie Sharples and Jordan Turner-
Hall from his squad ahead of
Sundays crunch match in Paris.
France, who have two wins and a
draw under their belts so far, named
their team yesterday and have select-
ed Stade Francais scrum-half Julien
Dupuy and Toulouse fly-half Lionel
Beauxis ahead of the benched duo
Morgan Parra and Francois Trinh-Duc.
Prop David Attoub is once again the
unlucky player to drop out of the ini-
tial 23-man squad named ahead of
the clash at Stade de France.
Lancasters
England are
accused of
being boring
BY JAMES GOLDMAN
RUGBY UNION
Sport
30
Lancaster has won two of his three games
in charge of England Picture: GETTY
BY FRANK DALLERES
OLYMPICS
SPORT | IN BRIEF
Messi breaks another record
FOOTBALL: Barcelona striker Lionel
Messi became the first player in
Champions League history to score
five goals in a single match as the hold-
ers ran riot at Camp Nou against
Bayer Leverkusen last night. Barca
romped to a 7-1 victory, securing a 10-
2 aggregate win and a place in the last
eight, which also featured two goals
from Cristian Tello. Meanwhile, APOEL
Nicosia became the first Cypriot team
to reach the last eight by beating Lyon
4-3 on penalties following last nights
1-0 win.
Gandy secures Olympic berth
OLYMPICS: World championship silver
medallist Ellen Gandy secured her sec-
ond Team GB Olympic berth with vic-
tory in the 200m butterfly final at the
British Swimming Championships last
night. Joining Gandy and Lowe at
London 2012 will be Andrew Willis
and Michael Jamieson. The 200m
breastrokers edged out British record-
holder Kris Gilchrist into third.
A CLINICAL display of finishing from
Jermain Defoe ensured Tottenham a
safe passage through to the FA Cup
quarter finals but his manager Harry
Redknapp insists he is still unable to
guarantee the England striker a start-
ing berth.
Defoe struck twice, either side of
Emmanuel Adebayors penalty, as
Spurs came from behind to beat
League One outfit Stevenage and
secure a last eight meeting with
Bolton at White Hart Lane a week on
Saturday.
After his goalscoring cameo in
Sundays 3-1 defeat against
Manchester United, Defoe, who has
started only two Premier League
matches since the turn of the year,
now has three goals in two games but
is not guaranteed to feature against
Everton at the weekend, according to
his manager.
Jermain looked sharp tonight and
took his goals well so thats good for
me, said Redknapp. But weve got
Louis Saha and Emmanuel Adebayor
so we are looking good up front
Rafael van der Vaart came through
tonight as well.
Its always difficult to leave any-
one out because they are all playing
well. Saha is scoring goals and
Adebayor too. Theres no way I can
play the three of them.
Its difficult to even play with two,
not many teams do, let alone three so
well have to have a look at it. Hes in
good form though and thats great
for us.
Redknapp would have hoped for a
routine evening but matters were
complicated by Joel Byroms fourth-
minute penalty and subsequent
injuries to Michael Dawson, who the
Spurs manager confirmed would be
out for the long-term, and Aaron
Lennon, who pulled up with a ham-
string strain.
Stevenage protected their lead
until the 26th minute when Defoe
controlled a long ball expertly on his
chest and fired beyond Chris Day
from the edge of the penalty area.
Spurs finally made their superiori-
ty tell 10 minutes after the interval
when Adebayor rolled home a penal-
ty after Gareth Bale had tumbled
under the challenge of Mark Roberts.
Defoe settled the contest 15 min-
utes from time when Bales quick
throw travelled nearly 40 yards and
found the striker in the space which
afforded him the time to cut in and
expertly locate the far corner.
BY JAMES GOLDMAN
FOOTBALL
3
1
TOTTENHAM
STEVENAGE
ULSTER hooker Rory Best will captain
Ireland in the absence of Paul
OConnell for Saturdays Six Nations
clash with Scotland.
OConnell, who was ruled out for
the rest of the tournament with a
knee injury earlier this week, has
been replaced at lock by Donnacha
Ryan, while scrum-half Eoin Reddan
comes in for Conor Murray.
Best previously captained Ireland
on the 2009 summer tour of North
America when Brian ODriscoll and
OConnell were unavailable because
of their Lions tour commitments.
I was obviously very honoured
when Declan [Kidney, coach] asked me
to captain the side, said Best. Its a
great honour.
Best proud to
lead Ireland for
Scotland clash
RUGBY UNION
Deadly Defoe
keeps Spurs
marching on
Deadly Defoe
keeps Spurs
marching on
Defoe has started
just two league
games since the
turn of the year
Picture: GETTY
Tottenham through to FA Cup quarter finals but
Harry cant guarantee striker first team football
Tottenham through to FA Cup quarter finals but
Harry cant guarantee striker first team football
31
CHAMPIONS RED BULL MOST
AFRAID OF ZIPPY BUTTON
JENSON RATED A BIGGER THREAT
THAN FELLOW BRIT HAMILTON: P29
ARSENAL manager Arsene Wenger is
facing the possibility of Uefa sanction
for the third time in a year after he
confronted referee Damir Skomina
following his sides 3-0 win over AC
Milan in the Champions League on
Tuesday night.
The Gunners boss, who was banned
from the touchline for the first three
matches of this seasons competition,
also made comments about the refer-
ees performance in his post match
press conference.
The European governing body con-
firmed a disciplinary case has been
opened for improper conduct but
have not revealed whether a potential
charge would relate to the tunnel
confrontation or his accusation that
Skomina awarded too many free-
kicks 21 in total against his side.
Despite the rousing nature of their
performance against the Serie A lead-
ers Arsenal exited the Champions
League stage at the last 16 stage 4-3 on
aggregate and are destined to finish
trophyless for a seventh consecutive
season.
Arsenal must now attempt to
ensure qualification for next seasons
premier European competition by
securing fourth place in the Premier
League and defender Thomas
Vermaelen believes recent displays
against Spurs, Liverpool and
Tuesdays win over Milan prove his
side are headed in the right direction.
If we can play like (we did on
Tuesday night), there is no way that
we will not be in the top four, the
Belgian said. That performance will
give us a boost now.
Its really important that we quali-
fy for the Champions League. I think
Arsenal are a team that belongs in the
Champions League.
Meanwhile, reports in Germany
last night claimed Arsenal have
agreed a fee with Cologne for striker
Lukas Podolski who looks set to join
the north London club following the
European Championships.
Wenger faces Uefa action
over Milan referee jibes
BY JAMES GOLDMAN
FOOTBALL
Buy online at fulhamfc.com or call 0843 208 1234 (option 1)

Saturday 17th March
(Kick-Off 3pm)
Tickets from 30 Adults and 10 Juniors
All tickets are subject to availability.
CITY A.M. VERDICT
It was far from straightforward with
injuries to Michael Dawson and Aaron
Lennon complicating matters further, but
the result was never really in doubt from
the moment Jermain Defoe equalised.
MAN OF THE MATCH
There were 11 heros out on the pitch for
Stevenage but sadly for their manager
Gary Smith none of his charges exhibited
the assuredness in front of goal which
Jermain Defoe possess in abundance.
KEY MOMENT
Only after several replays did it become
apparent that Gareth Bale had kicked Mark
Roberts rather than the other way around
in the build up to a penalty that effectively
decided the contest.
TALKING POINT
Englands striking cupboard is down to the
bare bones, so for one of the nations most
natural finishers to be restricted to the odd
FA Cup outing must be a worry for whoev-
er takes charge in the summer.
GAME STATS
SPURS 3-1 STEVENAGE
7 ATTEMPTS ON TARGET 7
8 ATTEMPTS OFF TARGET 7
8 CORNERS 6
51% POSSESSION 49%
0 YELLOW CARDS 2
0 RED CARDS 0
4 OFFSIDES 2
DUGOUT VIEW
I thought we gave a terrific account
of ourselves. Some big moments didn't
quite go our way in the second period
and some wonderful finishing from
Jermain Defoe in the end was too much
for us. In the end it was a corner kick
that ended up being our Achilles heel in
the first half because we werent able to
defend them on the counter attack
Stevenage manager Gary Smith
MATCH ANALYSIS
BY JAMES GOLDMAN
RANGERS administrators have
warned that the financially-stricken
Scottish champions are in severe dan-
ger of being unable to complete the
season.
Duff and Phelps said yesterday they
had again failed to agree cost-cutting
measures with players, leaving them
with little choice but to accelerate
attempts to sell the club.
David Whitehouse of Duff and
Phelps said: No one should be in any
doubt that in the absence of sufficient
cost-cutting measures or receipt of
substantial unplanned income, the
club will not be able to fulfil its fix-
tures throughout the remainder of
the season.
Administrators also admit Rangers
look doomed to being banned from
Europe next season as they are highly
unlikely to meet the necessary finan-
cial criteria, but plan to ask for special
dispensation.
However, Duff and Phelps denied
suggestions from a club director that
liquidation was inevitable, and insist-
ed that their stadium was not under
threat.
Joint administrator Paul Clark said:
As we have stated previously, we
remain very confident that Rangers
will not cease to exist and the team
will continue to play at Ibrox.
Interested parties will be invited to
hold talks with administrators over
the next few days, Whitehouse
added. Failure to achieve a sale would
result in very severe cost-cutting
measures at the club.
To be eligible for European competi-
tion next term Rangers, who lie sec-
ond in the Scottish Premier League
following a 10-point deduction for
entering administration, must satisfy
conditions by 31 March.
Clark said there was no realistic
prospect of the club being able to ful-
fil its obligations before governing
body Uefas deadline.
Gers could
fail to finish
the season
BY FRANK DALLERES
FOOTBALL
MIRACLE MAN TERRY TOOK TWO DAYS TO RECOVER

CHELSEA captain John Terry underlined his commitment to the cause by taking just two
days off after undergoing minor knee surgery a fortnight ago. It was estimated that the
31-year-old would be out for six weeks but he returned as an unused substitute in
Tuesdays 1-0 FA Cup replay win over Birmingham and is in contention to figure against
Stoke on Saturday. I had the operation, I was literally jogging about after two days,
which was incredible, he said. Its down to getting over it mentally as well, that youve
had an operation. I said to the physios, the way things were here, I just wanted to push
myself and be involved and try to get back as quickly as possible. Picture: PA
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Should nancial regulation intervene in the

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