Hong Kong:Hsbc Can Come Home: Groupon Postpones Its $750m Float As Market Turmoil Mounts

FTSE 100 5,156.84 +54.26 DOW 11,139.30 -100.96 NASDAQ 2,473.83 -6.50 /$ 1.60 -0.01 / 1.14 unc /$ 1.
.14 unc /$ 1.40 -0.01

Groupon postpones its $750m float as market turmoil mounts
HSBC is being wooed by regulators in
Hong Kong, who have assured the
bank that it would be welcome if it
decided to leave Britain and re-domi-
cile back to its original homeland.
City A.M. has learned that the Hong
Kong Monetary Authority (HKMA),
whose permission HSBC would need
to move back to the city state, has
informed the bank that it would be
implicitly backed by the Chinese gov-
ernment if it came home.
Doubts had been raised over Hong
Kongs ability to host a bank of
HSBCs size given that the firms asset
base of $2.7 trillion is more than 13.5
times the size of its economy.
But it is understood that the
HKMA has actively sought to reas-
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DISCOUNTING website Groupon has
put back its planned flotation amid
more US market turmoil and ques-
tions from regulators.
The $750m (457m) initial public
offering on the New York Stock
Exchange, expected later this month,
has been postponed by at least a fort-
night as Groupon waits for markets
to calm and tackles questions from
the Securities and Exchange
Commission.
Last night Wall Street closed down
for the third consecutive day. The
Dow Jones industrial average fell
nearly one per cent to 11,139.30.
Recession fears also loomed over a
collapse in European equities, with
the FTSEurofirst 300 sinking to its
lowest close in over two years.
The index dropped 0.7 per cent
during the days trading, to end the
session unofficially at 904.07 points.
It has lost over 19 per cent so far this
year amid the economic turmoil.
Banks exposed to the Eurozone
debt crisis took yet another hammer-
ing, with the STOXX Europe 600
Banking Index down 2.1 per cent,
sinking to a fresh 29-month low.
French banks BNP Paribas and
Societe Generale shed 5.2 and 6.5 per
cent respectively.
The ongoing troubles, combined
with the news that Swiss franc has
been pegged to the euro, saw gold
soar to a new record high yesterday
although it then retreated two per
cent as investors cashed in on profits.
The safe haven touched $1,923 an
ounce but sank back below $1,875
later in the day. MORE: P2-5, 24-25
BY PETER EDWARDS AND JULIAN HARRIS
MARKETS
sure HSBC that it does not share the

view of some regulators, who have
expressed concerns about welcom-
ing the bank back to Asia.
The warm words from Hong Kong
clear the way for the bank to flee the
UKs growing regulatory burden if it
becomes too onerous.
HSBC is currently conducting a
regular review of its domicile in
order to determine whether its HQ is
in the right place.
It is understood that the bank feels
it cannot make a decision until there
is a clear outcome from the
Independent Commission on
Bankings (ICB) final report, which is
published this coming Monday.
That means it will have to wait
until the Treasury draws up legisla-
tion to implement the ICBs propos-
als, with concerns centered on
whether chancellor George Osborne
will require banks to put a ringfence
around their UK retail operations.
Losing one of the worlds biggest
banks would be a major blow for
Osborne, but he has already commit-
ted to putting in place some kind of
ringfence requirement.
In May, Martin Wheatley, the out-
going head of the Hong Kong
Securities and Futures Commission
(SFC), told City A.M. that he would
have serious doubts about being lead
regulator to HSBC, given its size. The
lead regulator would usually be
expected to organise a rescue or
inject liquidity for its banks if
required.
But Wheatley has now left his job
in Hong Kong to take up a new role
at the FSA, and the HKMA has ulti-
mate authority over the SFC.
Relations between HSBC and
Beijing have become increasingly cor-
dial as the bank has sought and
gained permission to grow its
Chinese business. In July, HSBC
became the first foreign bank to
become a member of the Shanghai
Futures Exchange, giving it access to
Chinas gold futures market.
HSBC declined to comment on the
news.
BY JULIET SAMUEL
EXCLUSIVE
HKMA chief Norman Chan

(left) is ready to welcome
HSBC (led by Stuart
Gulliver, right) back to
Hong Kong
Pictures: REUTERS
HONGKONG: HSBC
CAN COME HOME
ANALYSIS l HSBC Holdings PLC
31 Aug 1 Sept 2Sept 5Sept 6Sept
540
535
530
525
520
515
510
505
509.20
6Sept
p
News
2 CITYA.M. 7 SEPTEMBER 2011
CHANCELLOR George Osborne came
out fighting during questioning in
parliament yesterday, insisting that he
will continue with plans to cut the UK
governments annual deficit.
Osborne also rejected calls from
Labours Ed Balls for another tax on
financial sector bonuses -- and was
quick to make fun of the back-stabbing
suffered by Balls at the hands of for-
mer Labour chancellor Alistair Darling
this week. Darling has admitted that
the previous tax on bonuses had to be
a one-off, Osborne said.
Osborne also received a boost from
Lloyds of London chair Lord Levene,
who backed the chancellors growth
strategy.
Levene said the financial industry
should end its self-imposed flagella-
tion in order to help foster economic
growth fuelled by the private sector.
Osborne defended his austerity pro-
gramme yesterday, ahead of a crunch
meeting with finance ministers from
other G7 countries.
The way this country and other
countries are going to get growth is
not by taking yet another fix of the
debt-fuelled spending bubble that got
us into the mess we are in at the
moment, he said, during a separate
question and answer session. I will
further discuss fiscal consolidation
plans in the G7, G20 and IMF meetings
later this month, Osborne added.
IMF chief Christine Lagarde will visit
London this Friday to meet with
Osborne prior to the G7 meeting in
Marseilles later that evening.
Lagarde appeared to contradict
Osborne at the end of last week, by
calling for yet another period of fiscal
stimulus.
Looking at Europe, we recommend
countries adjust their austerity pro-
grammes to a changed situation and
consider measures to drive growth,
she told German magazine Der
Spiegel on Sunday.
Also appearing in Westminster yes-
terday, Prime Minister David Cameron
signalled that Britain will demand the
return of some powers from Brussels
to London in return for agreeing to
any new European Union treaty.
German finance minister Wolfgang
Schaeuble said that changes to treaties
may be required to bring the Eurozone
closer together as a guard against
future debt crises. A German court is
expected to rule today that its parlia-
ment should have more powers to
determine whether or not to support
bailouts to ailing Eurozone member
states. WEALTH MANAGEMENT: P26
Chancellor Osborne:
I am not for turning
BY JULIAN HARRIS
UK ECONOMY
BANKS have called for a rethink from

the Basel Committee over its stringent
liquidity requirements.
The committee yesterday denied
that it is preparing to loosen the rules,
which will come as bad news to
lenders, who say the current rules
force them to buy too many govern-
ment bonds and are too expensive.
The British Bankers Associations
(BBA) Irving Henry, head of prudential
capital and risk, said: Right now, the
emphasis is on sovereign bonds. We
would welcome a recalibration of the
asset pool so that less emphasis is
placed on sovereign bonds.
With the emphasis on government
securities, banks are mandated hold-
ers and becoming almost indistin-
guishable from the state, Henry
added. [Basel] needs to think about
that concentration risk.
Meanwhile banking lobby group
the Institute of International Finance
predicted that the myriad rules being
brought in around the world could
dent global economic output by as
much as 3.2 per cent by 2015.
This would lead to 7.5m fewer jobs
being created, the IIF said.
BY JULIET SAMUEL
REGULATION
PM David Cameron said the UK would take a tough line in Europe

Banks call on Basel to reconsider rules
Eurozone needs
to cut out the rot
before its too late
WHEREVER one looks, the signals are
bad. The S&P 500 is down 14.5 per cent
from its highest point of the year. The
Vix, a measure of market turbulence,
rose 9.4 per cent yesterday. Bank
stocks tumbled everywhere. The Swiss
franc went nuts when the authorities
took the dramatic step to peg it to the
euro, a possibly unworkable plan
aimed at preventing the destruction
of Swiss exports as its currency keeps
on rising as a result of safe haven buy-
ing. Even though the UK and the US
economy are still just about expand-
ing, the vibes are ominous.
There are intense worries that weak
growth and the possibility of a
renewed slide in US house prices could
hit the financial system hard. But the
greatest fear of all, of course, is the
Eurozone, which is on to a hiding to
nothing. Several component states are
insolvent in all but name; contagion
fears are rife; nobody has a credible
plan to do something about it.
There is still a chance that the EU
will muddle through. If it doesnt, the
authorities need a Plan B. One thing is
sure: it would be a disaster were the EU
authorities or individual countries to
end up launching deeply unpopular
Tarp style capital injections for
Eurozone banks that fail as a result of
the stupidity and over-borrowing of
governments. Capitalism will lay dis-
credited across the continent if this
EDITORS LETTER
ALLISTER HEATH
turns into a bailout bonanza, fuelling
populist, fascistic or extreme-left atti-
tudes and a war on wealth. Instead,
the authorities should encourage pru-
dent firms in France and Germany to
recapitalise privately; they could also
allow the good ones to temporarily sus-
pend capital requirements. But they
should stand ready to seize and
unwind insolvent banks, starting with
the weaker ones in Greece, as Sweden
famously did in the 1990s. Equity
should be wiped out; top management
fired; contracts suspended; and bond-
holders made to take a huge hit. All
bad assets should be auctioned off and
sold to the highest bidder. The banks
should then be recapitalised and repri-
vatised as soon as possible, with the
aim to minimise any taxpayer losses.
The central bank should stick to liq-
uidity support to solvent banks in the
event of a sudden collapse in the inter-
bank-lending and money markets. Our
monetary and banking system is pred-
icated on the existence of central
banks as the ultimate bank for private
banks. The central banks lender of last
resort function has been largely mis-
represented over the past three years.
It is not tantamount to a bailout,
assuming that it is properly and fairly
provided, that it doesnt discriminate
against smaller banks and that it does-
nt amount to a secret subsidy.
What should happen is that the cen-
tral bank must take in collateral in
exchange for providing otherwise
unlimited amounts of liquidity to the
system; if an asset provided as collater-
al has suddenly become illiquid and
hard to value, the central banks job is
to assess a fair value for it. The rate
charged for this service should be
steep. This doctrine was laid down in
1802 by Henry Thornton in his An
Enquiry into the Nature and Effects of
the Paper Credit of Great Britain and
by Walter Bagehot in his Lombard
Street in 1873. I actually believe that
this kind of policy is second-best; there
is a more efficient and less risky way of
doing things that relies more on the
market, as argued by George Selgin of
the University of Georgia, Lawrence H
White of George Mason University and
others. But we live in the world we live
in, and the European Central Bank
and others ought to be prepared to
produce as much liquidity as is needed
to solvent banks if the present crisis
intensifies.
Tragically, the Eurozone is repeating
the errors of the past. The Greek state
is insolvent; because its financial sys-
tem owns a lot of the debt, it too is in
trouble. This is a solvency problem, not
a liquidity issue (though some other,
much sounder EU banks may soon be
contaminated by genuine liquidity
issues if the crisis continues). Rather
than gradually shifting much of the
debt on other, more prudent
European countries, which will merely
fuel terrifying political tensions, the
answer must be to face reality and
amputate the rotten limbs.
Popular support for capitalism will
only be possible if all industries are
governed by profit and loss, not just
profit and bailouts. Any outcome will
be painful; but unless dud institutions
and unrepayable debt are written off,
this crisis will never end and the ensu-
ing recession will drag on for years,
discrediting our society.
[email protected]
Follow me on Twitter: @allisterheath
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: [email protected] www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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ANALYSIS l Societe Generale
10:00 00:09 14:00 16:00 12:00

20.50
19.50
19.00
20.00
18.92
6 Sept
ANALYSIS l STOXX Europe 600
10:00 14:00 16:00 18:0 12:00
225
224
223
222
221
220
221.98
6 Sept
YIELDS l Greek 2 year bonds
%
JUL AUG SEP
60
40
30
50
52.314
6 Sept
Chancellor George Osborne stuck by his plans for austerity
THOUSANDS of trades union mem-
bers marched in Madrid yesterday to
protest against austerity measures
and a swift constitutional reform to
cap government spending, which
they say threatens government-fund-
ed social programmes.
The workers and members of the
youth Indignados movement gath-
ered in Puerta del Sol square -- ground
zero for anti-government protesters
in Spain -- in the evening carrying
banners reading I dont want any
change to the constitution.
Union leaders said 25,000 people
took part but witnesses said the
turnout was about half that.
The protest, organised by Spains
two main union federations, the
CCOO and UGT, came a day before
the countrys Senate is due to change
the constitution to limit structural
deficits in central and regional gov-
ernments.
Youth unemployment tops 40 per
cent in Spain and one in five workers
are jobless, the highest rate in the
European Union.
GREECE will default in December,
according to analysts at RBS, as yields
on the sovereigns short-term debt
reached a record yesterday.
As Eurozone finance ministers
struggled to reach a deal on the collat-
eral they will demand in return for
Greeces second bailout, market inter-
est rates on its two-year debt shot to a
new high of 53.2 per cent.
However, Athens managed to get
through a short-term debt auction to
refinance its maturing six-month
bonds yesterday, selling 1.3bn.
Seventy per cent of the debt was pur-
chased by domestic buyers, most of
whom are likely to be Greek banks
that are required to hold government
bonds to fulfil liquidity requirements.
Greece paid 4.8 per cent for the
cash, 60 basis points above the rate it
pays on its IMF/EU bailout loans. It is
not known if the European Central
Bank (ECB) intervened in secondary
markets during the sale.
However, European leaders are
finding it difficult to reach agree-
ment over Greeces second 109bn
bailout. Finance ministers from
Holland, Finland and Germany were
meeting in Brussels yesterday to
agree on a position.
Finland is leading the charge to
demand collateral in return for new
loans on top of the first 110bn rescue.
Leaders of the Eurozones paymas-
ter economies are tasked with per-
suading their reluctant voters and
parliaments to back a second rescue,
despite Greece failing to meet any of
the targets that were conditions of its
first bailout. Securing collateral from
Athens in the form of state-owned
assets, for example could help to per-
suade legislators.
RBS: Greek default this year
Spanish trades unions protest
against cap on public spending
EUROZONE CRISIS
BY JULIET SAMUEL
EUROZONE CRISIS
ITALY made yet more changes to its

proposed austerity package yester-
day, hiking VAT and planning a bal-
anced budget amendment as
hundreds of thousands of citizens
went on strike to protest against the
measures.
As part of the effort to balance
the countrys budget by 2013, Prime
Minister Silvio Berlusconis govern-
ment yesterday said it would up the
basic rate of VAT by one percentage
point to 21 per cent, with an extra
three per cent levy for high earners.
The additional wealth tax will
apply to those earning more than
500,000 (438,830) per year.
Other measures floated by
Berlusconis cabinet include raising
the retirement age for women work-
ing in the private sector to 65 years
two years earlier than planned, in
2014.
The package could be passed
today, as a vote of confidence is
called in the Italian Senate ahead of
a meeting of the governing council
of ECB, scheduled for tomorrow.
Approval in the lower house
would then be needed for the final
plans to be passed.
New austerity plan
as Italians strike
BY ELIZABETH FOURNIER
EUROZONE CRISIS
News
Italian PM Silvio Berlusconi announced higher taxes and an extended retirement age
Wolfgang Schauble hinted at new treaties Greek finance minister Evangelos Venizelos
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SWITZERLANDS central bank

shocked currency markets yesterday
by pegging its burgeoning currency
to the euro to limit its soaring value
as a safe haven and shore up bat-
tered Swiss exporters.
The Swiss National Bank said it
was prepared to buy foreign curren-
cy in unlimited quantities to keep
the franc at a minimum 1.20
exchange rate against the euro.
The news sent the franc sharply
down almost nine per cent against
the euro, causing shock among
watching analysts, and reigniting
fears of currency war style
reprisals by other central banks to
weaken their currencies.
But experts warned that such
intervention was unlikely to prove
effective for long because the under-
lying problems causing flight from
risk were still in place.
The SNB issued a brutal statement
making it clear it would stop at noth-
ing to achieve its goal.
The current massive overvalua-
tion of the Swiss franc poses an
acute threat to the Swiss economy
and carries the risk of a deflationary
development, it said.
The SNB will enforce this mini-
mum rate with the utmost determi-
nation and is prepared to buy
foreign currency in unlimited quan-
tities.
Jeremy Cook, chief economist at
currency exchanger World First, said
its use of unlimited was virtually
unprecedented. People are going to
try to test the SNBs resolve in pro-
tecting this level, he said.
The move was also a challenge to
European authorities to put an end
to the Eurozone crisis causing the
rush to the franc. The European
Central Bank acknowledged the deci-
sion but gave no comment on it.
Cook said the SNBs move was an
opening battle but could bring
short term relief to Swiss exporters
until a solution to the Eurozone
problems could be found.
Currency war
fear as Swiss
set franc floor
ANALYSIS l Euro vs Swiss Franc
Aug15 Aug1
1.2
1.15
1.1
1.05
BY ALISON LOCK
CURRENCIES
News
ANALYST VIEWS: WHAT WILL THE SNBS
DECISION ACHIEVE? Interviews by Alison Lock
JENNIFER MCKEOWN | CAPITAL ECONOMICS

In theory, this policy should be successful in devaluing the franc as
there are no limits to the amount of francs that the SNB can print. The
franc has already dropped by seven per cent to 1.20 on todays news and we now
see it remaining at around that level for the rest of the year.
JEREMY COOK | WORLD FIRST

This is intervention on a grand scale. It was the single largest foreign
exchange move I have ever seen. This dwarfs moves seen post Lehman brothers,
7/7, or others. This turns up the heat on the Eurozone and economies who have
benefited from weakening their currency in the past couple of years.
LOUISE COOPER | BGC PARTNERS

Changing long term global currency flows is near impossible a lesson
the UK learnt from George Soros! The main reason for Swissie strength is the
flight to safety. The franc will weaken if and when investors start getting more
keen on risk, but at the moment all I see is evidence of fear.
FRIDAY 5 AUGUST
Swiss Franc surges against
the US dollar as rating agency
S&P strips the US of its AAA
credit rating after weeks of
political wrangling
WEDNESDAY 10 AUGUST
Franc sinks after the Swiss
National Bank warns markets it
will take action to weaken the
franc and expands its available liq-
uidity to address the issue.
The Swiss National Banks Philipp Hildebrand said he would staunchly defend the floor
Aug29
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FROM banking giant UBS to watch-

maker Swatch, Swiss exporters were
the biggest winners from yesterdays
decisive central bank move to take on
the currency speculators.
The 30 per cent appreciation in the
franc against the euro since 2009 has
decimated profits at companies such
as Nestle and Roche that make the
majority of their revenues globally.
Nestle estimated at its last results
that the currency strength knocked
600-700m francs from its operating
cash flow in the first half of this year,
while in June Swatch chairwoman
Nayla Hayek (pictured below) said the
franc was eating Swiss businesses.
The SNB is buying time for Swiss
exporters, which have been absolutely
hammered over the past two years,
said Jeremy Cook, chief economist at
World First.
But the move to curb the currency
may create losers in less likely quar-
ters as investors such as hedge funds
betting the currency would appreci-
ate further could be left with paper
losses.
Currency traders said there were
already also signs that investors seek-
ing a safe haven were moving to new
targets, with elevated demand for the
Norwegian krone and US dollars.
Black box computer hedge funds
and managers who bet on global mar-
kets were likely among those hardest
hit by the shock intervention.
Among computer funds that may
have been hit is Man Groups flagship
$23.9bn AHL fund. An AHL fund man-
ager said last month it had a small bet
on the franc, though the fund
declined to comment on its position
yesterday.
WEALTH MANAGEMENT:P24-25
BY ALISON LOCK
CURRENCIES
News
Exporters gain breathing space
but investors could suffer losses
WEDNESDAY 17 AUGUST
Investors plough back into franc and gold as
safe havens after emergency meetings
between German chancellor Angela Merkel
and French president Nicolas Sarkozy (below,
left) end without a deal to shoulder debt held
by peripheral Eurozone economies through
tools such as euro bonds
TUESDAY 6 SEPTEMBER
Swiss National Bank abruptly establish-
es a floor for the franc against the euro,
causing the biggest single-day drop in
the francs value ever recorded. The SNB
says it will buy unlimited quantities of
foreign currency to maintain the floor
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TOTAL costs at the European arm of
Goldman Sachs fell sharply in the
first half of the year, according to fig-
ures published yesterday.
Administrative expenses, which
include pay, bonuses and the other
major costs of running the business,
came to $1.802bn (1.13bn) at
Goldman Sachs International (GSI),
down 38 per cent from $2.907bn for
the same period last year.
The bank only publishes informa-
tion on salaries and bonuses at a glob-
al level.
GSI, the London-based European
division which has about 5,000 staff
in Britain, made pre-tax profits of
$1.21bn for the six months to 30 June,
down 17 per cent from $1.47bn for
the same period last year.
Revenue fell to $3.05bn, down 31
per cent from $4.42bn in the first-half
of 2010 as the European sovereign
debt crisis, the Japanese tsunami and
emerging markets inflation all had
an impact on the results.
GSI also paid $600m after chancel-
lor George Osborne decided to contin-
ue the bank payroll levy brought in
by Labour.
No one from the bank was avail-
able for interview but the directors
report said the bank had suffered
significantly lower revenues in
fixed income, currencies and com-
modities.
High levels of uncertainty and
decreased levels of liquidity during
the second quarter of 2011 con-
tributed to difficult market-making
conditions and prompted the compa-
ny to operate at generally lower levels
of risk.
Standard & Poors gave GSI a rating
for the first time, marking it A+/A-1.
GSI, led by co-chief executives
Michael Sherwood and Richard
Gnodde, will be subject to intense
speculation later this year when it
publishes the top executives annual
bonus figures.
Costs cut at
Goldman as
revenues fall
WOOD Group and 3i were the losers
in the FTSE 100 reshuffle yesterday,
dropping out of the index and losing
out on the benefits bestowed upon
companies big enough to eat at the
top table.
They are likely to be replaced by
investment firm Ashmore and equip-
ment supplier Bunzl, pending a final
decision later today by the FTSE EMEA
Committee.
The firms moving up into the pre-
mier league of companies, calculated
by market capitalisation, usually
receive a boost as they are included in
market tracking funds.
Conversely, fund managers who
have invested in Wood Group and 3i
could be forced to offload their stock
in these companies.
Inmarsat and ITV were among the
companies towards the foot of the
table who avoided the big drop.
Just missing out on promotion were
African Barrick Gold and Meggitt.
The near miss will be particularly
painful for Meggitt director Peter
Huber, who yesterday bought an extra
15,000 worth of shares in the firm,
taking his total holding to just shy of
100,000 inclusion into the FTSE 100
could have given him an instant
return on his investment.
PRIVATE equity giant Carlyle Group
will launch its long-awaited US flota-
tion once market turbulence calms.
City A.M. understands Carlyle wants
to raise hundreds of millions, rather
than billions, of dollars from the ini-
tial public offering. The figure of
$100m listed with the Securities and
Exchange Commission is merely a
placeholding figure.
Carlyle, which declined to com-
ment, expects the regulatory proce-
dures to take between three and six
months and will then make a deci-
sion about the date of the IPO,
depending on the US market.
Investors appetite could be hit by
the poor performance of Blackstone,
the private equity house whose
shares have dropped by a third since
late April, but industry insiders
expect the stock to rebound based on
the returns from its investments.
Wood Group
and 3i drop out
of the FTSE 100
Carlyle set to go public
despite market turmoil
Hands up: Carlyle MD David Rubenstein will expect interest from investors globally
BY PETER EDWARDS
BANKING
News
CITYA.M. 7 SEPTEMBER 2011
BY PETER EDWARDS
PRIVATE EQUITY
7
BY STEVE DINNEEN
FINANCIAL SERVICES
THE SPOTLIGHT once again fell on

James Murdoch yesterday, after two
former News International executives
told a parliamentary committee they
told him phone hacking was not limit-
ed to a single rogue reporter and he
failed to act.
Former editor Colin Myler said he
told Murdoch about an email titled
for Neville which appeared to prove
phone hacking was more widespread
than the company had previously
admitted. He said: I think everybody
perfectly understood the seriousness
and the significance of what we were
discussing.
His testimony was backed up by for-
mer News of the World senior lawyer
Tom Crone, who was also present in
the 15 minute meeting in 2008 that
could prove central to the allegations.
Murdoch was forced to issue a state-
ment denying he misled parliament,
saying: Neither Myler nor Crone told
me that wrongdoing extended beyond
Goodman or Mulcaire. However, he
now faces a humiliating recall before
the committee to explain the discrep-
ancy between his testimony and that
of the men who have worked under
him.
During a tense media select com-
mittee grilling, Crone and Myler
denied they were part of a cover-up
operation, or that they were told to
keep quiet or lose their jobs.
Crone also claimed that former
News of the World editor Andy
Coulson wanted to keep its shamed
royal editor Clive Goodman on the
payroll even if he was jailed.
NotW execs
say Murdoch
misled MPs
NEW banking venture NBNK
Investments suspended its shares
yesterday as it confirmed it was in
talks that could lead to its maiden
acquisition.
However, the bank declined to
name its target, despite sources yes-
terday confirming that it would look
to buy the UK operations of National
Australia Bank.
There can be no certainty that a
transaction will be forthcoming.
Further announcements will be
made in due course, NBNK said in a
statement.
NBNK was set up last year by for-
mer Lloyds of London insurance
chairman Lord Peter Levene and it
raised an initial 50m through a
stock market flotation.
Striking a deal with NAB UK would
give it more funding to buy the 630
Lloyds branches currently on the mar-
ket.
Sources with knowledge of the
matter have listed NBNK, Sun Capital
Partners and The Co-Operative
Groups banking arm as the front-
runners for the Lloyds branches,
which could fetch about 2.5bn.
Both Lloyds and rival Royal Bank of
Scotland have been ordered by regula-
tors to sell assets following govern-
ment bailouts.
NBNK suspends
shares ahead of
possible deal
BY STEVE DINNEEN
MEDIA
ANALYSIS l News Corp

$
1 Sep 31 Aug 5Sep 6Sep 2Sep
17.25
16.75
16.25
15.75
16.34
6 Sept
Neither Mr Myler nor Mr
Crone told me that wrong-
doing extended beyond
Mr Goodman or
Mr Mulcaire.
James Murdoch
[There] was clear evidence
that phone hacking was
taking place beyond Clive
Goodman... That is what was
relayed to Mr Murdoch.
Tom Crone
There is no suggestion that
anyone tried to hide any-
thing... If we had known
then what we know now,
things would have been
massively, massively differ-
ent for everybody. Colin Myler
We got to a figure which
to my mind was a reason-
able settlement [for jailed
reporter Clive Goodman].
There was no basis in
which we were trying to
cover it up. Jon Chapman
BY HARRY BANKS
BANKING
News
Spread beting losses can exceed
your initial deposit.
FORMER BP chief executive Tony
Hayward will imminently seal his
return to the oil industry by buying
into Turkeys Genel Enerji, in a deal
valuing the target at around 2.5bn, a
source close to the matter said yester-
day.
Vallares, an acquisition vehicle
established by Hayward and finan-
cier Nat Rothschild, has agreed in
principle to a tie-up with Genel
Enerji, which owns oil fields in
the semi-autonomous Kurdish
region of Iraq, and is expected to
announce a deal in the coming
days.
The exact terms of the
deal are unclear but it is
expected to net
Hayward and his
Vallares co-founders
tens of millions of
pounds.
In June, Vallares
raised 1.35bn from
investors to target emerging-market
oil assets.
The plan was to offer owners of oil-
fields a shortcut to a London Stock
Exchange listing, thus enabling them
to raise finance to fund the develop-
ment of their assets.
Hayward, Rothschild and the other
Vallares founders, are entitled to a 6.67
per cent stake in the enlarged
group, following the comple-
tion of a deal, and this
would be worth around
$300m if Vallares buys all of
Genel Enerji.
Hayward said he would
be chief executive of any
acquired company and has
assembled a team of big names
around him, including former
deputy chief executive of
BP and chairman of
Petrofac, Rodney
Chase.
The tie-up will
need to be blessed
by the Kurdish
authorities.
Tony Hayward
nears 2.5bn
oil purchase
TWO Bank of America executives are
leaving the firm after a boardroom
shake-up.
Joe Price, president of global con-
sumer and small business banking,
and Sallie Krawcheck, president of
global wealth and investment man-
agement, depart as chief executive
Brian Moynihan seeks to capitalise on
the upbeat mood created by Warren
Buffetts $5bn (3bn) investment in
the bank last month.
Moynihan has appointed David
Darnell and Tom Montag to the new
positions of co-chief operating offi-
cers.
Darnell is now in charge of individ-
ual client arms while Montag will be
responsible for the arms that serve
companies and institutional
investors.
It seems apparent Moynihan is
under pressure to make some bold
moves, said David Dietze, chief
investment strategist at Point View
Financial Services, which owns BofA
shares.
Obviously there is disagreement
among people at the top who have
lots of options and lots of experience.
Buffetts investment last month
provided a boost to the beleaguered
BofA as it struggled to convince the
market of its financial health.
Even though the bank has said it
did not need to raise capital, investors
widely believed it needed to show it
could raise funds easily.
Moynihan said yesterdays manage-
ment reshuffle will help BofA contin-
ue its transformation. David and
Tom are leaders skilled at driving
profitability and growth by focusing
their businesses on all we can do for
customers.
Director shake-up at Bank of America
BY HARRY BANKS
ENERGY
News
BY PETER EDWARDS
BANKING
9
PIMCO WINS MORE FREEDOM
Pimco, the US asset manager, is being
given more autonomy as part of a
restructuring by its owner Allianz,
the German insurer. Pimco has been
one of Allianzs most successful
investments since it was acquired in
2000 and has been given a largely free
rein to set its own course.
OSBORNE URGED TO DROP 50P TAX
George Osborne should drop the 50p
top rate of income tax at the earliest
opportunity to boost growth, accord-
ing to 20 high-profile economists.
Britain will only enjoy long-term
growth if it has an internationally
competitive tax regime, the group say
in a letter.
TCHENGUIZ HIRES WIKI BARRISTER
Embattled property tycoon Vincent
Tchenguiz has hired Ben Emmerson,
QC, the barrister representing the
Wikileaks founder Julian Assange to
launch a fresh attack against the
Serious Fraud Office, claiming that it
breached his human rights.
DISPUTE WONT HALT HOTELS SALE
Two London hotel developments have
been put up for sale for more than
200m after a legal dispute between
the partners behind the projects. The
sale of the luxury InterContinental in
Westminster and a Hilton in
Southwark follows a ruling over a
spat between Shiraz Boghani and
Bashir Nathoo.
CONSUMER DEBT WILL HIT RETAILERS
British consumers are burdened with
too much debt, high levels of infla-
tion and rising borrowing costs a
toxic combination, which will hit
nearly all retailers profits, according
to a gloomy summary of the sector by
Citigroup, the brokers.
OIL INDUSTRY WARNS MINISTERS
North Sea oil bosses have told the
Government that uncertainty over
who will pay the 30bn bill for dis-
mantling old platforms is even more
harmful to investment than the
Chancellors tax grab on energy com-
panies. BG Group, BP, Total, Shell and
TAQA Bratani have asked ministers
for clarity on paying for the work.
WHAT THE OTHER PAPERS SAY THIS MORNING
WHITBREAD cheered the market yes-
terday after reporting a sharp rise in
sales at its Premier Inn and Costa
Coffee chains, despite the continuing
shaky consumer climate.
The hotel and restaurant group
was the top performer in the FTSE
100 after posting a 4.8 per cent
increase in like-for-like sales in the 11
weeks to 18 August against the same
period last year.
In a statement, Whitbreads chief
executive Andy Harrison said Premier
Inn saw growth across the UK but par-
ticularly in London, leading to a 7.1
per cent rise in sales at hotels open
for more than a year.
But he said trading at the groups
pub restaurants arm, which includes
Beefeater and Brewers Fayre, remains
challenging, with customers being
particularly price sensitive.
It saw a 1.6 per cent fall in like-for-
like sales over the quarter as cus-
tomers still showed signs of financial
pressure.
New store openings helped boost
Costa Coffee sales by 28.8 per cent in
the period, with like-for-like sales
increasing 9.7 per cent. The company
has opened 145 new stores this year,
and aims to open another 155 by the
end of the year.
The group plans to increase the
number of Premier Inn rooms in the
UK by almost 50 per cent by 2015-16.
Like his sector peers, Harrison cau-
tioned that trading remained vari-
able in the continuing uncertain
economic environment.
Costa Coffee
lifts turnover
at Whitbread
HOUSEHOLD and personal care pro-
ducer McBride has seen its profits fall
by 76 per cent in the year to 30 June.
The own-label goods manufactur-
ers end-of-year results, released yes-
terday, showed that pre-tax profits
have dropped from 29.6m to 7.1m.
McBride chief executive Chris Bull
has said that the results can be best
explained by the challenging envi-
ronment within which McBride is
currently competing.
McBride profits
fall as market
remains tough
Andy Harrison, CEO, said Whitbread traded strongly in the second quarter
BY KASMIRA JEFFORD
LEISURE
YAHOO chief executive Carol Bartz

has been fired by the companys
board, sources familiar with situation
said last night.
Bartz said in a memo to employees
at the US technology group that she
was fired over the phone, one of the
sources said.
Another source said the companys
board named chief financial officer
Tim Morse as the interim CEO while a
permanent replacement is found.
Yahoo chief is
fired by phone
TECHNOLOGY
News
ANALYSIS l Whitbread
p
1,580
1,540
1,500
1,460
1,563.00
6 Sept
Hangover dulls caffeine high
WHITBREADs upbeat statement yes-
terday was a breath of fresh air to
the markets, propping up the FTSE
with a seven per cent jump as it
promised yet more growth from its
core Costa Coffee and Premier Inn
brands.
But theres one albatross still
hanging around the company neck
its underperforming pub restaurant
business, where like-for-like sales
were down by 1.6 per cent.
Whitbread sold 239 of its Brewers
Fayre chain to Mitchells & Butlers in
2006, and its remaining pub restau-
rants are almost all on the same site
as one of the groups budget hotels.
But with M&Bs recent marketing
push and Spirits refurbishment
ramping up competition in the sec-
tor, success by association isnt
enough to make the food outlets
worth keeping.
The group is quite rightly pinning
its future on caffeine addicts, pour-
ing recent funds raised into Costa
and predicting revenues from the
coffee chain will overtake the restau-
rant division by the end of the year.
Though the fall in restaurant sales
is not enough to offset stellar sales at
Costa and Premier, and we expect
future profit upgrades from its solid
growth plan, it does cast a shadow
over one of the consumer sectors
few success stories at the moment.
BOTTOMLINE
Analysis by Elizabeth Fournier
BY WILLIAM TURVILL
CONSUMER
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BRITISH pubs and brewery group
Greene King said higher demand for
pub food helped it partly offset the
impact of cost inflation and lower con-
sumer morale in the 18 weeks to 4
September, and reported a rise in like-
for-like sales.
The trading outlook remains
uncertain as UK consumers are having
to cope with rising costs, falling dispos-
able income and the prospect of
increased unemployment, the compa-
ny said in a statement yesterday.
The 212-year-old Suffolk-based firm,
which runs pubs such as Hungry
Horse, Old English Inns and Bellhaven,
posted a 4.2 per cent rise in like-for-like
sales, while sales at the retail division
its largest and fastest growing divi-
sion grew 2.6 per cent.
Greene King said margins and prof-
it remained in line with its expecta-
tions and both its acquisitions this
year, Cloverleaf and Realpubs, were
trading strongly.
The company also recently bought
smaller rival Capital Pub Company for
70m, trumping a 54m offer from
rival Fuller, Smith & Turner.
Greene King shares, which have fall-
en 10 per cent over the past three
months, closed up 0.79 per cent at
434.9p yesterday
Greene King cautious as
pub food boosts its sales
Chief executive Rooney Anand has overseen a rise in like-for-like sales Picture: GETTY
BY HARRY BANKS
CONSUMER
News
NEWS | IN BRIEF
BP ploughs 700m into North Sea
BP said yesterday it plans to invest up to
700m on developing an oil reservoir in
the central North Sea. BP, along with its
minority partners Eni and Summit, hopes
to produce 45,000 barrels a day once
the Kinnoull prospect is up and running.
The consortium will spend two years
upgrading the Andrew platform ahead of
production, during which time the rig will
be shut down.
Conrad Black returns to jail
Former media mogul Lord Conrad Black
yesterday returned to prison in Florida
to finish serving a sentence for fraud and
obstruction of justice, a US Bureau of
Prisons spokesman said. Black, who once
owned the Telegraph, was booked in to
the Federal Correctional Institution in
Miami, a low-security facility, yesterday
afternoon to serve another 13 months in
prison under a 2007 conviction.
@
@
@
MORE NEWS
ONLINE
www.cityam.com
BRITISH companies took advantage of
the weak global economic recovery to
spend 10.2bn on acquisitions in the
last quarter.
The Office for National Statistics fig-
ures for April to June mark a slow-
down on the first three months of the
year, but are still the second highest
since the first quarter of 2008.
The largest acquisition was the
$7.3bn (4.58bn) purchase of oil and
gas firm Pride International by
London-based and US-listed Ensco, the
owner of the worlds second-largest
offshore drilling fleet.
Several other high-profile deals were
completed in the second quarter,
including the acquisition, by Pizza
Express founder Hugh Osmond, of US
temporary power provider APR and oil
services firm John Woods sale of its
well support business to GE.
Rhys Phillip, partner at Ernst &
Young and head of UK and Ireland
mergers and acquisitions, said there
had been a general rise in confidence
in the second-quarter as macro-eco-
nomic conditions stabilised and began
to show signs of improvement.
That was all thrown in the air in
quarter three [however] as the Greek
crisis appeared to deepen and ques-
tions were raised about the USs credit
rating. Therefore I am not convinced
this a sustained recovery.
The picture abroad was more
gloomy. The total value of M&A deals
by British companies overseas fell 51
per cent from the previous quarter
when GDF took control of
International Power with the 41
deals closed the lowest since the first
quarter of 2010.
Acquisitions in the UK by foreign
firms totalled 8.5bn in the second
quarter, higher than the previous
quarter but still low in historic terms.
The award winning Galaxy S II
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BY PETER EDWARDS
M&A
ITALYS biggest bank Unicredit plans

to double its presence in China to
secure growth in the market, its gen-
eral manager said yesterday.
Roberto Nicastro said Unicredit
will open new branches in Beijing,
mid-west cities such as Chongqing
and Chengdu, as well as along the
coast to gain a greater foothold in
Asias biggest economy.
The Chinese market is crucial for
us, we are ready to double our pres-
ence in the next few years, Nicastro
said in an interview in Italy.
The Chinese market is booming
and the outlook for European quality
exports there is one of the very few
truly exciting developments today.
Milan-based Unicredit serves
European clients in China through
Shanghai and Guangzhou branches
and a Beijing headquarters.
Unicredit chief says bank plans
to double its presence in China
BANKING
ASSET manager City of London

Investment Group said its funds
under management had risen by a
third in the year to the end of May,
and to more than $5bn (3.1bn) yes-
terday.
City said the jump outstripped the
29 per cent growth seen in the MSCI
emerging market index over the
same period, while its pre-tax profits
jumped 27 per cent to 13.1m.
City, which listed on the LSE main
market last October, added that the
recent market turbulence had cut its
funds under management by 10.3
per cent to $5.3bn by the end of
August.
But it said this also outperformed
its MSCI comparator, which fell 10.6
per cent, and said the turmoil
helped it to significantly benefit in
terms of its investment perform-
ance.
We are confident that our invest-
ment process can continue to pro-
duce good returns, said chairman
Andrew Davison yesterday.
City of London Investment is
undaunted by market turmoil
BY ALISON LOCK
FUND MANAGEMENT
News
LLOYDS HIT BY SURGE IN PPI COMPLAINTS
LLOYDS (led by Antonio Horta Osorio, pictured) was the most complained-about bank in
the first half of 2011 after being hit by a flood of disputes over mis-sold payment protec-
tion insurance, the financial ombudsman service said yesterday. It received 37,696 com-
plaints against Lloyds Banking Group, of which about 26,910 were related to PPI.
Barclays received the second-highest number of complaints, at 19,050. Pic: REUTERS
ANALYSIS l City Of London Investment
p
382.50
377.50
372.50
367.50
372.25
6 Sept
UK firms snap
up more rivals
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AUSTRALIAS Macquarie Group is
preparing a bid for the aircraft leasing
arm of Royal Bank of Scotland in a
deal that could be worth at least $6bn.
The bank is in early stages of putting
together an offer and is exploring a
number of options, which include
making a direct offer or putting
together a consortium to bid for the
assets, a source told City A.M.
RBS Aviation is one of the worlds
top four commercial airline leasing
firms with over 200 aircraft currently
on lease. It has a portfolio value of
$8bn (4.8bn).
Royal Bank of Scotland previously
tried to find a buyer in 2009, but
shelved the sale last year as the finan-
cial crisis made bids unattractive.
Goldman Sachs has been recruited to
handle the auction.
The first round of bids from interest-
ed parties are due on Friday this week.
A source close to the company said
the unit had attracted interest from
several companies across the world,
including private equity firms and
financial institutions.
Dublin-based RBS Aviation said it
will not be commenting further dur-
ing the sales process.
Last year, Macquarie expanded its
aircraft leasing business by buying up
American International Groups air-
craft portfolio for $1.6bn.
Oz bid for RBS
airline assets
BY KASMIRA JEFFORD
AVIATION
FRENCH drugmaker Sanofi expects

annual earnings to rise more than five
per cent on average in the next four
years as a strategic shift into new
growth areas insulates it from block-
buster drugs going off patent.
The firm, which bought US biotech
group Genzyme for $20.1bn earlier in
the year, said it hopes to make 2bn in
additional cost savings by 2015 in addi-
tion to beefing up its research and
development pipeline.
Sanofi has been branching out into
areas including vaccines and animal
health in a bid to make up for declin-
ing sales of top drugs like bloodthin-
ner Plavix and cancer drug Taxotere,
which are facing generic rivals after
losing patent protection.
We are essentially moving into a
new phase, a phase of growth, said
chief executive Chris Viehbacher.
Sanofi aims for 2bn cost savings
as Genzyme prompts an overhaul
PHARMA
BUDGET airline easyJet carried 5.54m

passengers during August, notching
up a 6.5 per cent rise on last years fig-
ures in what is traditionally the travel
industrys busiest month.
For the 12 months to the end of
August, easyJet took 54.1m passengers
on its flights a rise of 11.8 per cent
on the previous year.
In August the carriers load factor
a measure of how full its flights are
dipped 0.1 percentage point to 92.2
per cent. However, easyJets load fac-
tor in the year to August rose 0.3 per-
centage points to 87.2 per cent.
The airline runs a no refunds poli-
cy, meaning that all the tickets it sells
count towards the figures, even if cus-
tomers fail to turn up for their flight.
The robust numbers come as
easyJet attempts to fend off another
boardroom assault by founder and 38
per cent shareholder Sir Stelios Haji-
Ioannou.
Sir Stelios has called for easyJet to
remove Professor Rigas Doganis after
the director backed the purchase of 35
aircraft from Airbus in January, a
transaction that Stelios fiercely
opposed.
He has already claimed the scalp of
fellow board member Sir David
Michels over the Airbus purchase.
EasyJet delivers strong rise in
passenger traffic in August
BY MARION DAKERS
TRANSPORT
News
ANALYSIS l Macquarie
AUD
26.50
25.50
24.50
23.50
23.16
6 Sept
How easyJet passenger
numbers fared in August
54.1M
+11.8%
Number of passengers in the 12
months to August
5.54M +6.5%
Number of passengers in August
compared with last year
Load factor of
87.2%
in the year to August a
0.3 percentage point rise
92.2%
Load factor in August a drop of
0.1 percentage points on last year
News
BETFAIR shares surged more than
five per cent per cent yesterday
despite falling short of the heights
it reached during last years World
Cup.
The betting exchange was
buoyed by record mobile phone bet-
ting as well as strong trading at
Royal Ascot, Wimbledon and the
Open Golf Championship.
It said its first quarter revenue
fell seven per cent to 80.8m, beat-
ing analyst forecasts of 79m.
The company reiterated its full-
year revenue target of 346m.
Chief financial officer Stephen
Morana said he is pretty comfort-
able that the signs are positive for
the rest of the year.
Betfair floated at 13 a share last
October and rose as high as 16
before losing 50 per cent of its
value, dogged by the regulatory
concerns casting a shadow over the
gaming industry.
The gaming giant has been
forced to shutter its poker and
games business in Italy over clashes
with regulators and will take a 3m
a year hit on its Spanish business
thanks to new tax laws. It is also fac-
ing difficulties in Germany and
Greece.
The firm has come in for criti-
cism for the bumper pay awarded
to its senior executives, including
outgoing boss David Yu, despite its
decline in its value. The company
did not name a successor to Yu.
Betfair, founded 10 years ago by
one-time professional gambler
Andrew Black and ex-JP Morgan
trader Edward Wray, allows gam-
blers to either place a bet or offer
odds to others, taking commission
on their winnings. Last year, it
matched more than 900m bets.
Betfair falls short
of World Cup high
BY STEVE DINNEEN
GAMING
ALLOCATE Software yesterday

announced its fifth consecutive
year of record growth, driving rev-
enues up 37 per cent despite chop-
py trading waters. The workforce
management software retailer
also pushed its underlying earn-
ings up 57 per cent to 5.8m.
Chief executive Ian Bowles said:
We continued to strengthen our
position in both the overseas and
the UK healthcare markets. The
defence business has also had a
good year with major new orders.
Record year
for Allocate
TECHNOLOGY
Philip Reitinger has advised the US Department of Homeland Security on cyber threats
INTERNATIONAL Paper sealed a
$3.7bn (2.3bn) deal to buy rival
Temple Inland by raising its offer
five per cent, cementing its position
as the leader of the North American
corrugated packaging market.
The deal, which is expected to
close by the end of 2012, came
together after a Labor Day weekend
meeting between IP chief executive
John Faraci and Temple counterpart
Doyle Simons.
Simons opened Temples books to
Faraci something he had refused to
do since the IP offer was made public
in June and IP went hostile in July.
IP initially offered $30.60 per
share, an amount that Temple had
repeatedly said was too low.
After reviewing Temples num-
bers, Faraci and the rest of IPs board
voted on Monday night to boost the
offer to $32 per share, roughly
$3.7bn.
IP will assume $600m in Temples
debt.
The deal averts a prolonged hostile
bid process, which likely never
would have succeeded given
Temples poison pill defence.
We concluded that we were
ready, willing and able to offer $32
per share and still remain highly
confident that we had an accretive,
strategic and financially attractive
acquisition, Faraci said.
Temple makes corrugated packag-
ing, which is used to make shipping
boxes. When the deal closes,
International Paper will be able to
consolidate pricing power by control-
ling roughly 40 per cent of the corru-
gated industry.
International Paper
seals $3.7bn deal
for Temple Inland
BY HARRY BANKS
M&A
ANALYSIS l Betfair
p
700
660
620
655.00
6 Sept
SONY has hired an ex-US Department
of Homeland Security official to head
up its security team in a bid to ensure
it does not fall victim to a second cata-
strophic hacking attack.
Philip Reitinger, previously director
of the US National Cyber Security
Center, will be tasked with making
sure Sony has closed the gaps in its
security that allowed hackers to steal
information about 100m of its users.
Reitinger, who has also worked for
Microsoft and the US Department of
Defense, was one of President Obamas
key policy-makers during the first two
years of his administration. He stepped
down in June after finishing a two year
review of US national cyber security,
saying he wanted to spend more time
with his family.
The appointment comes as a host of
companies, including UPS and
Telegraph Media Group, were hit by
hackers this week.
Obama adviser
hired to head
Sonys security
BY STEVE DINNEEN
TECHNOLOGY
DELL and Chinas top search

engine Baidu plan to jointly devel-
op tablet computers and mobile
phones, targeting the Chinese
market dominated by Apple and
Lenovo.
China is one of the fastest grow-
ing markets for tablets and is
home to more than 900m mobile
phone subscribers, but analysts
were sceptical that the partner-
ship would unseat Apple as the
dominant force in the nascent
market.
Dell declined to give a timeline
for the launch of the devices, but
it is understood they may be avail-
able as early as November.
Baidu launched a new mobile
application platform last week
and offered a glimpse of its
upcoming mobile operating sys-
tem, which it hopes will serve a
growing number of users access-
ing the internet from smart-
phones and tablet computers.
Baidus Nasdaq-listed shares are
up nearly 50 per cent so far this
year, giving it a market value of
around $50bn.
Dell to launch a tablet in
China in deal with Baidu
TECHNOLOGY
The ofcial fuel consumption gures in mpg (l/100km) for the Clio I-Music 1.2 16V 75 are: Urban: 37.2 (7.6),
Extra Urban: 57.7 (4.9), Combined: 48.7 (5.8). The ofcial CO2 emission gure is 135g/km.
Renault TV on Sky Guide 883
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Bluetooth & iPod connectivity
Air conditioning
3 years servicing for 199***
3 years/100,000 mile warranty
Rentals stated are for Renault Lease. Renault Selections PCP nance product also available. If you choose Renault Lease then you will not own the car. When you have paid the nal rental at the end of the contract you can keep using the car and pay an annual rental equivalent to one monthly rental. *Clio I-Music 1.2 16V 75
example advance rental 159 followed by 43 monthly rentals of 159, nal rental 3,640. A nance facility fee of 149 will be payable with the advance rental. Guarantees and indemnities may be required. You must be at least 18 and a UK resident (excluding Isle of Man and Channel Islands) to apply. Finance provided by RCI
Financial Services Limited, PO Box 149, Watford WD17 1FJ. Authorised and regulated by the Financial Services Authority for the conduct of general insurance business. Available at participating dealers only. Not available in conjunction with any schemes or other offers, please see your local dealer for details. All offers available on
retail orders only for new cars when ordered between 26th August and 30th September 2011 and registered by 31st December 2011. Car shown with optional metallic paint available at an additional 445. All gures correct at time of going to publication. This promotion is open to UK, Channel Islands and Isle of Man residents, 18
years old or over only, with the exception of employees (and their families) of Renault UK Ltd, their suppliers, agents, third parties, employees of authorised Renault Dealerships or anyone professionally connected with this promotion. Entrants must possess a full, clean drivers licence. Test drives available 1/8/11-19/9/11. Closing
date for receipt of applications is noon on 20/9/11. Instant rewards will be given to the rst 2,000 people to test drive and redeem their code online. Check with your dealership before booking. Concert dates are subject to availability and the date awarded cannot be changed. For full terms and conditions on ticket promotion and
a full list of dates visit vavavoom.co.uk. Internet access required. One entry per person only. Promoter: Renault UK Ltd., The Rivers Ofce Park, Denham Way, Maple Cross, Rickmansworth, Hertfordshire, WD3 9YS. For full Terms & Conditions visit vavavoom.co.uk. **200 voucher is available on all Clio and Mgane models
excluding Pzaz and Bizu Limited Editions ordered between 26th August and 30th September 2011 and registered by 31st December 2011. ***Service offer covers vehicles for 3 years or 30,000 miles (whichever comes rst) and is available at the point of new car registration. The Service offer can be transferred to another new
vehicle at no extra cost. Services must be carried out in line with manufacturers servicing schedule and can be carried out at any Renault Dealer. Available at participating Dealers only. Vehicles covered for 3 years or 100,000 miles, whichever comes rst.
TOSHIBA will buy out Shaws stake
in nuclear power plant company
Westinghouse Electric, clearing
nearly $1.7bn of the US firms debt.
Shaw says the sale of its 20 per-
cent stake in the venture will be
used to strengthen its balance sheet.
Shares in Toshiba fell more than
seven per cent to two and a half year
lows yesterday on concerns the chip-
maker could be saddled with costs
of buying additional shares it
agreed in principle to acquire five
years ago, before Japans worst
nuclear disaster put a chill on global
demand for new reactors.
Shaw partnered Toshiba and
Japanese engineer IHI Corp to buy
Westinghouse from British Nuclear
Fuels for $5.4bn in 2006. Toshiba
bought 77 per cent, Shaw pur-
chased 20 per cent, and IHI three
per cent.
Toshibas stake in Westinghouse
fell to 67 per cent after the company
sold part of the stake to
Kazakhstans state-owned nuclear
power company Kazatomprom.
Shaw had an option under the
original deal to sell the
Westinghouse stake to Toshiba. That
option expires in February 2013.
Shaw sells nuclear
stake to Toshiba
BY STEVE DINNEEN
ENERGY
Since May 2010 following the Gulf of Mexico oil spill, the Oil Spill
Prevention and Response Advisory Group (OSPRAG) has led the
UK oil and gas industrys effort to ensure that its drilling practices
and procedures are robust and remain fit for purpose. While the
industry, regulators and trade unions are confident in the ability of
current regulations and procedures to prevent major well control
incidents, OSPRAG has made great strides in identifying where
improvements can be made and implementing them.
Oil & Gas UKs OSPRAG Summit provides delegates with the
opportunity to find out from experts about the range of projects
undertaken to bolster the industrys prevention of blowouts and in
the unlikely event that such an incident occurs, the sectors
response to it.
BOOK NOW: www.oilandgasuk.co.uk/ospragsummit
Oil & Gas UK Member Rates: 200.00 plus VAT per person
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and Response
Wednesday 21 September 2011
Aberdeen Exhibition and Conference Centre
Endeavour
Supporting Sponsors
FOR MORE INFORMATION VISIT WWW.OILANDGASUK.CO.UK/OSPRAGSUMMIT
Principal Sponsor
SHARES in home decorative items
maker Blyth soared by more than a
quarter yesterday despite the compa-
ny reporting a net loss for the second
quarter as discontinued operations
and charges related to its ViSalus
equity incentive plan took their toll.
The company also raised its earn-
ings guidance for the full-year 2012,
citing strong sales and profit growth
at ViSalus Sciences, which makes
energy drinks.
We are very pleased with the per-
formance of ViSalus, which accelerat-
ed during the second quarter...
Effective products that taste good,
combined with a great earning oppor-
tunity for ViSalus distributors, have
resulted in a winning formula that is
being replicated across the US, chair-
man and chief executive Robert
Goergen said. The US company posted
a net loss of $3.07m for the second
quarter, compared to net earnings of
$0.74m in the prior-year quarter.
Shares in Blyth
soar despite
bigger losses
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RETAIL
FOR MORE NEWS

@
www.cityam.com
News
ANALYSIS l Toshiba
JPY
31 Aug 30Aug 2Sep 5Sep 1 Sep
340
330
320
297.00
6 Sept
SPRINT PILES INTO AT&T LEGAL FIGHT
US mobile phone group Sprint Nextel yesterday sued to block rival AT&Ts
$39bn (24.4bn) purchase of T-Mobile USA, saying the deal would lead to higher
prices for consumers and create a duopoly between AT&T and Verizon
Communications. Last week, a similar lawsuit was brought on by the US
Justice Department, putting the takeover in jeopardy.
News
NEWS | IN BRIEF
PIRC questions DTZ boss
Investor body PIRC has advised DTZ
shareholders to oust chairman Tim
Melville-Ross, following last months
board shake-up at the property consul-
tancy. PIRC said yesterday that Melville-
Ross is not independent because he was
nominated by takeover suitor and
biggest shareholder SGP. The firms chief
exec and finance director left in August.
Ashtead more than doubles profit
Industrial equipment hire firm Ashtead
forecast substantially better full-year
results after booming business in its core
US market. The FTSE 250 company
posted a 211 per cent rise in first-quarter
pretax profit for the three months to 31
July of 33.8m, easily beating market
expectations. The firms shares soared
almost 19 per cent on the news.
Apple is still shining despite the loss of Jobs
A
fortnight ago Steve Jobs
announced that he was resign-
ing as chief executive of Apple
with Tim Cook, the former
chief operating officer, taking over.
Jobs guided the company he had
founded in 1976 from the difficult
days of the late 1990s to become one
of the most successful and biggest
companies in the world.
As the public face of Apple he has
become synonymous with new prod-
ucts, with items like the iPod, iPad
and iPhone reinventing the way the
world interacted with technology.
Speculation has been rife since the
announcement about how Apple
would cope without Jobs at the helm.
Much of course will depend on the
way the company operates and how
important one man is to it, but we
can use YouGovs BrandIndex data to
measure the immediate impact on
public perception.
As we would expect attention (the
number of people hearing news
about Apple, whether it be good or
bad) rose immediately both in the UK
and in the US.
Index, an amalgamation of six key
measures impression, quality, value,
reputation, satisfaction and recom-
mendation also rose slightly in both
countries and although those gains
were not that large and have, to some
extent, fallen back in the last couple
of days the very positive news for
Apple is that it has increased rather
than decreased.
These are of course early days but
Apple can certainly be buoyed by the
fact that its already high scores
(which are in the high +30s for index
in both countries) have not been
harmed and the public does not feel
any different about the Apple brand
since the departure of Jobs.
Stephan Shakespeare is the chief executive
of YouGov
STEPHAN SHAKESPEARE
BRANDINDEX
ANALYSIS l Index Chart
5Sep 18Aug 1 Aug
45.0
0.0
20.0
15.0
10.0
5.0
25.0
30.0
35.0
40.0
UK
US
ANALYSIS l Attention Chart
5Sep 18Aug 1 Aug
60.0
0.0
10.0
20.0
30.0
40.0
50.0
UK
US
NO PLAN B
GEORGE IS
GQ MAN OF
THE YEAR
BETTER LATE than never for George
Osbornes belated fortieth birthday pres-
ent from Cond Nasts UK head Nicholas
Coleridge, whose glossy magazine empire
last night rewarded the chancellor for his
sheer bloody mindedness.
BBC political editor Nick Robinson pre-
sented Osborne with his Politician of the
Year trophy at the GQ Men of the Year
Awards at The Royal Opera House, a trib-
ute to true grit in recognition of the
stamina with which the chancellor has
resisted everyone who criticises his no
plan B approach to economic recovery.
Last night was the second time Osborne
has been named GQs Politician of the
Year the first time, in 2009, the mens
magazine admired his nimble escape
from what could have been a watery polit-
ical grave following the Deripaska affair
a potentially fatal collision of yachts,
Bullingdon boys and Peter Mandelson.
Those days thankfully seem a long time
ago, said columnist Matthew dAncona,
who judged the award. The only problem
is, in the volatile economy of 2011, Boy
George is more like Atlas carrying the
entire weight of the coalitions problems
on his shoulders. No pressure, then.
A lot of men, in fact. Perhaps unfortu-
nately for a book that says boardrooms
need to fight the macho culture that
brought the City to its knees, there were
only about ten female faces at the party
although The Capitalist is sure the likes of
Addictive Interactive chief executive
Sarah-Jane Thomson, Numis Securities
executive director Lorna Tilbian and head-
hunter Jan Hall, head of the JCA Group,
more than held their own
WEDDING BOLES
CONGRATULATIONS to Tory MP
Nick Boles, who last weekend fol-
lowed his quiet London civil cere-
mony to Shay Meshulam back in
March with a larger wedding on
Ibiza, a relaxed affair where a num-
ber of the guests wore shorts.
The Capitalist also hears that when
Boles kissed his partner after
exchanging vows, all the guests
were encouraged to kiss their other
halves at the same time although
it is not clear how the single invitees
managed that situation
WRITERS BLOCK
THE BOOKWORMS are coming out of the
woodwork, as adman Maurice Saatchi pre-
pares to launch Brutal Simplicity of
Thought at the V&A on 19 September, fol-
lowed by a party for The Ascent of Media
YouGov chairman Roger Parrys take on
Niall Fergusons The Ascent of Money at
the Globe on 26 September.
Getting in early, however, is David
Cameron and George Osbornes former
economic advisor Matthew Hancock MP,
who stole a march on Monday night with
a Number 11 Downing Street reception for
Masters of Nothing, a study of the human
behaviour that caused the banking crash
co-authored with former YouGov chief
executive Nadhim Zahawi MP.
In a break with book launch tradition,
there were no copies for sale at the recep-
tion; instead, guests were handed a leaflet
on leaving advising they could order the
book from its publishers Biteback. It
was extraordinary, spluttered one
empty-handed literary mole, while
another who yesterday ordered the
book at the knockdown price of 7.49
on Amazon joked to cabinet secretary
Sir Gus ODonnell: I should have
realised Downing Street is not a profit
centre, it is a cost base.
Also left trawling Amazon were
Schroders fund manager Andy Brough;
Hargreaves Hale investment manager
Patrick Evershed; Henry Angest, chair-
man of Arbuthnot Securities; Tory
peer Lord Howard Flight; and Bell
Pottinger founder Piers Pottinger.
Left: George Osborne
last night won
Politician of the Year
at GQs Men of the
Year Awards for his
new-found grit
Right: Conservative
MP Nick Boles
Below: Saatchi &
Saatchi founder
Maurice Saatchi
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EVERY READER AT THE DRIFT BAR
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From the team that
brought you The Folly and
The Anthologist, the drift
in Heron Tower on
Bishopsgate is a stunning
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To celebrate their opening,
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week to claim a Russian
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The drift in Heron Tower on
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Wednesday to Friday this week to
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the drift is a stunning new venue
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Wine lovers can choose from an
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of Prosecco and Champagnes for
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the drift, 110 Bishopsgate, London, EC2N 4AY.
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Cobbler. Valid from 12 noon to 11pm until Friday 9 September 2011.
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offered are subject to change/availability. Management reserves the right
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19 EDITED BY
HARRIET DENNYS
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Introduction by City AM Editor, Allister Heath
SHOPFITTER Havelock Europa yester-
day reported reduced half year losses,
increased revenue and said it made
progress in securing new business in
overseas markets.
Group revenue increased by four
per cent to 42.9m in the six months
to 30 June. Havelock reported a pre-
tax loss of 1.5m compared to a loss of
4.6m in 2010, following exceptional
costs of 2.1m. Group net debt was
reduced to 17.2m from 19.7m in
December 2010.
Havelock also confirmed the
appointment of Paul Davis as busi-
ness development director.
GAZPROM yesterday started pumping
the first gas through its controversial
subsea pipeline from Russia to
Germany, bypassing Ukraine, where
disputes have halted energy supplies
to European countries twice since
2006.
The 1,220-kilometre Nord Stream
pipeline is the first direct link
between western Europe and Russia,
which provides for around quarter of
the EUs gas supplies.
The pipeline will deliver enough
energy to supply 26m households
across Europe when it is fully complet-
ed next year.
The launch yesterday saw the
pipeline filled with so-called buffer
gas, which helps create the right level
of pressure before it is ready to start
transporting gas to Europe in about a
months time.
Speaking at the event in the north-
ern city of Vyborg, Russian prime min-
ister Vladimir Putin said the Nord
Stream project would reduce Russias
dependence on Ukrainian pipelines
and ease relations between the two
neighbouring countries.
Ukraine has been locked in disputes
with Russia over gas prices and debt
for more than a decade.
A stand-off between the two coun-
tries in 2009 choked gas supplies to
parts of Europe in the dead of winter,
putting pressure on Gazprom to devel-
op routes avoiding conflict areas.
Ukraine, which has told Russia it
wants to renegotiate the gas agree-
ment to secure lower prices and
import less gas, has said that if the
two sides cannot reach agreement it
will seek arbitration in Stockholm.
The $12.5bn Nord Stream project,
agreed in 2005 by then German chan-
cellor Gerhard Schroeder and Russias
Putin, is made up of two pipelines and
should be able to move 55bn cubic
metres of gas a year by 2013, after the
completion of the second pipeline.
State-owned Gazprom owns 51 per
cent of Nord Stream, the company
building the pipeline, alongside
Germanys Wintershall, E.ON
Ruhrgas, the Dutch company NV
Nederlandse Gasunie and Frances
GDF Suez.
Gazprom is also leading the South
Stream pipeline project, which will
run from southern Russia to Bulgaria
under the Black Sea.
Gazprom fills
Nord Stream
gas pipeline
INDUSTRIAL conveyor belt maker
Fenner forecast full-year results ahead
of market expectations after strong
trading in its fourth quarter.
The firm said yesterday trading in
the final quarter to 31 August had
been particularly robust in both the
conveyor belting and advanced engi-
neering products divisions.
Fenner said it would end the year
with net debt of less than 110m.
Whilst we note that uncertainty
about the strength of the global econ-
omy has increased, the demand levels
remain in line with our expecta-
tions, the firm added.
We are increasingly convinced
Fenner is a higher-quality, more
robust stock post managements
reshaping of the group, said Investec
in a note.
Sign up at cityam.com
Fenner predicts a
year of big growth
WATER treatment group Hydro
Internationals pre-tax profits rose
by 53.9 per cent to 950,000 in the
six months to the end of June.
Revenue increased 23.8 per cent to
13.7m while operating profits rose
by 36.8 per cent to 1.04m.
Chief executive Steve Hides said:
Significant progress has been made
in the half with accelerated progress
on key wastewater contracts.
The group remains financially
strong and well placed to deal with
the short term challenges posed by
the current economic environ-
ment, he added.
Hydro profits
rise in first half
Havelock Europa
pares its losses
BY KASMIRA JEFFORD
ENERGY
RETAIL
UTILITIES
Gothenburg
Stockholm
Volkhov
Valdai
Torzhok
Smolensk
Minsk
Vilnius
Riga
Tallinn
Bialystok
Kaliningrad
Malmo
Szczecin
Greifswald
Hamburg
Copenhagen
Esbjerg
Aalborg
Emden
Bremen
Berlin
St. Peterburg
NORTH SEA
RUSSIA
POLAND
ESTONIA
LATVIA
BELARUS
LITHUANIA
DENMARK
GERMANY
Nord Stream gas pipeline
Existing gas pipelines
Gas pipelines under design
Territorial sea boundary
EEZ boundary
EEZ boundary (unofficial)
BY HARRY BANKS
INDUSTRIALS
News
ANALYSIS: GAZPROMS NORD STREAM PIPELINE
SOARING energy and food prices are
hitting consumers across the devel-
oped world, claim figures out today.
Data from the Organisation for
Economic Cooperation and
Development (OECD) show consumer
price index (CPI) inflation increased to
3.1 per cent across all items in the 12
months to July. That is up slightly
from three per cent the month before.
The UK experienced higher infla-
tion than the average of the OECDs 34
member nations, at 4.4 per cent.
Energy and food prices changed
most dramatically among all mem-
bers, rising by 4.5 per cent and 13.5 per
cent respectively.
The biggest increases come in ener-
gy prices. US consumers are facing 19
per cent rises in 12 months, with UK
prices up 10.7 per cent.
Food prices face serious upside risks
in coming months. Poor harvests in
the US in particular which accounts
for half of all corn exports is putting
upward pressure on prices.
Already analysts say fierce competi-
tion has cut margins, meaning con-
sumers are not yet fully exposed to
rising prices.
Faced with the lowest consumer
confidence since the recession began,
shops have maintained high promo-
tion levels, said Mike Watkins of
Nielsen, whose separate study, out yes-
terday, showed food prices had risen
five per cent in the year to August.
OVERALL growth slowed dramatically
across Europe from April to June, fig-
ures released yesterday confirmed
but growing demand from other
countries helped the 27 member
states in positive figures.
GDP across the European Union
grew by a meagre 0.2 per cent in the
second quarter, taking growth for the
12 months to June to 1.7 per cent.
The UK performed weakly, with
annual growth of 0.7 per cent, while
the Baltic nations expanded the most.
Estonia, Latvia and Lithuania all
boomed, growing at 8.4 per cent, 5.7
per cent and 6.2 per cent respectively.
Falling household spending was
largely to blame, declining 0.2 per
cent in the second quarter. Export
growth bolstered the figures, with a
one per cent rise outstripping the 0.5
per cent growth in imports.
As evidence of weak growth and
low confidence in the third quarter
mounts including this weeks poor
PMI stats analysts predict the stag-
nation will continue through 2012.
The data continue to signal ongo-
ing slowdown of the Eurozone econo-
my, said Julian Callow from Barclays
Capital. Our PMI-based GDP indica-
tor continues to signal that in Q3 real
GDP expansion will be around 0.1 per
cent, quarter on quarter, though we
do see that risks are rather tilted to
the downside.
The EUs 0.2 per cent growth was
matched by the US, while Japans
economy shrank by 0.3 per cent.
Exports struggle to keep EU afloat as
consumer demand slides even further
THE RECOVERY in UK job prospects
could be running out of steam if the
trend seen in August continues,
according to a report out today.
The Recruitment and
Employment Confederation (REC)
and KPMG said the rise in vacancies
brought by the economic recovery
slowed through August.
Pay levels are also suffering, with
last months increases being the low-
est for 22 months even as inflation
threatens to hit five per cent.
Although the jobs market has
held up relatively well, it remains in
the summer doldrums and, worry-
ingly, there seem to be early signs of
trends similar to those of 2008, said
KPMGs head of business services
Bernard Brown.
Employers continue to take a cau-
tious approach to hiring decisions
amid an uncertain economic cli-
mate. Much will depend on macro-
economic factors and their effect on
overall confidence.
UK employment recovery
could soon be at an end
EMPLOYMENT
VEHICLE registrations increased in

August for the first time in 14 months,
the Society of Motor Manufacturers
and Trades has revealed.
Over 59,000 new cars were sold last
month, representing a 7.3 per cent
increase on sales in August 2010.
From January to July of this year
sales were down 6.1 per cent on the
same period last year.
Ford led the field with 3,213 Fiesta
sales, representing over five per cent
of all new car registrations in the
month.
But the SMMT is expecting registra-
tions for the full year to be down five
per cent, as sales in August are usually
light compared with the rest of the
year.
Consumers are nervous about the
future and short to medium term eco-
nomic uncertainty is likely to temper
the rate of future growth said SMMT
chief executive Paul Everitt.
There is some room for
optimism, though
commercial vehicle
sales are up 20 per
cent over the year
so far. From HGVs
to lighter-weight
trucks, the market has held
up despite the slow economic recov-
ery.
September is traditionally the
largest month for registrations, with
the new 61-plate becoming available.
Glimmer of hope after year of decline
in new car sales as vans carry market
UK ECONOMY
STRONG service sector performance

in the US has given new hope to econ-
omists who had feared signs of a slow-
down.
The Institute for Supply
Managements non-manufacturing
purchasing managers index (PMI)
increased to 53.3 in August, up from
52.7 in July, it said yesterday.
Experts had expected the figure to
fall to 51. Any figure above 50 repre-
sents growth, with this increase indi-
cating a growing pace of expansion in
the sector.
These figures are far stronger than
expected, helping to dispel some of
the recent gloom, said Chris
Williamson, chief economist at
Markit. The consensus-beating read-
ing leaves the US in better shape than
other major developed economies.
Analysts believe the figures keep
the US on track for a solid economic
growth figure in the third quarter,
which could reach up to an annu-
alised 1.5 per cent. However, weaker
recent stats such as low jobs figures
and poor manufacturing results
mean the outlook is far from certain.
There isnt much good news
around, so this is a spot of welcome
relief, said INGs Rob Carnell.
Despite covering a larger section of
the economy than the manufactur-
ing survey, the service sector tends to
trail rather than drive the business
survey.
That means this spot of welcome
good news amongst an otherwise dis-
mal backdrop probably doesnt
change the notion that the US is skirt-
ing recession right now.
The surprise improvement in the
US counters Eurozone stats earlier in
the week, which showed a slowdown
in growth to 51.1. Countries like
Spain and Italy are experiencing
declining output in services.
Services lift US growth hope
BY TIM WALLACE
US ECONOMY
Energy hikes
lead inflation
rise in OECD
BY TIM WALLACE
WORLD ECONOMY
BY TIM WALLACE
EUROPEAN ECONOMY
News
CITY VIEWS: ARE YOU SURPRISED BY THE RISE IN CAR REGISTRATIONS?
Interviews by William Turvill and Max Faulkner
With the country's current economic situa-
tion in mind, I am surprised at the increase in
car registration. Personally, I very rarely pur-
chase a new car and still own my 1980
Land Rover Defender, which has done
79,000 miles.
ROBIN TUTTY | STARR AND PARTNERS
Everyone wants a car and I'm not particu-
larly surprised at the increase in car sales. I
quite often change my vehicle and if my
wife learned to drive then I would
definitely by myself a new car.
ROLAND OPOKO | RSA
I usually change my car every three or four years but I always look at my finances before buying
a new car. I find it surprising that more cars are being registered when people supposedly have
less money.
TAYO FASHINA | ROCK TECH LTD
* These views are those of the individuals above and not necessarily those of their company.
ANALYSIS l OECD/UK inflation
OECD
Jul Sep Aug Nov Dec Jan Feb Mar Apr May Jun Jul Oct
4.0
3.0
2.0
1.0
UK
FACTORY orders in Germany fell
sharply in July, according to statistics
out yesterday.
Orders fell by 2.8 per cent, repre-
senting a major turnaround from the
situation in earlier months. June and
May saw increases of 1.8 per cent and
1.5 per cent rise respectively.
The stats add to other indicators
pointing to a renewed downturn.
German factory
orders plummet
on low demand
GERMAN ECONOMY
TWELVE consecutive months of infla-

tion increases have left Brazil with its
highest price rises in six years, new
statistics showed yesterday.
CPI inflation hit 0.37 per cent in
August, with prices rising by 7.23 per
cent over the last year.
Despite an official target of 4.5 per
cent, the central bank cut interest
rates at the end of August.
Rocketing price
pressures strike
again in Brazil
BRAZILIAN ECONOMY
News
Fox Williams
The law firm has appointed financial
services and regulation specialist Peter
Wright, formerly a leading member of
the legal group at the Financial
Services Authority, as a partner in its
financial services regulatory team,
based in London.
CB Richard Ellis
CB Richard Ellis has appointed Francis
Warner Lacey and Elizabeth Sedgman
to the central London tenant advisory
group. Warner Lacey joins from Knight
Frank, where she was a partner in the
City agency team advising developers,
landlords and occupiers, including
Investec and JP Morgan. Sedgman
joins from Cushman & Wakefield,
where she was an associate partner in
the corporate real estate team.
BlackRock
Ingo Heinen has joined as a managing
director in the alternative investment
strategy group at BlackRock
Alternative Investors. Most recently,
Heinen managed institutional equity
derivatives and fund-linked sales for
Germany and Austria at the Royal
Bank of Scotland.
IMS Group
The compliance and regulation consul-
tancy has appointed three new compli-
ance consultants: Diana Stevens,
Cynthia Griffith and Daniel Sharpe. The
three hires join from Eton Park Capital
Management, HedgeStart Partners
and Octopus Investments.
DLA Piper
Dr Jacqueline Bore, formerly a life sci-
ences regulatory and product life
cycle specialist at Arnold & Porter,
has been appointed as a partner in
the law firms intellectual property &
technology group.
Hymans Robertson
The independent pensions and bene-
fits consultant has appointed Vijay
Krishnaswamy as head of the enter-
prise risk management practice. He
joins from the Financial Services
Authority and will lead the establish-
ment of the firms new ERM practice.
Irwin Mitchell
The law firm has hired Holly Trotman,
formerly an associate at Nabarro, to
its real estate planning team.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Wall Street falls
on Europe fears
W
ALL Street fell for a third day
yesterday on fears Europe
still has failed to tackle its
debt crisis, prompting wor-
ries the market is headed to new lows
for the year.
Investors channeled cash into less
risky assets as doubts resurfaced over
the political will of Italy and Greece to
push through tough budget measures
and as Germany hardened its stand
against providing more aid. The wor-
ries over the European debt crisis
renewed fears that the global econo-
my could fall into recession.
The S&P 500 is now down 14.5 per
cent from its highest point in 2011,
reached at the end of April. Though
investors have periodically taken
heart from signs that Europe has
carved out a plan to deal with its fes-
tering crisis, confidence has been
repeatedly walloped every time there
is a development showing that the
problems have not been solved.
We have got a shot at trading the
S&P under 1,100 again, said Nick
Kalivas, an equity index analyst at MF
Global in Chicago. I don't sense that
people are really going to defend the
market until something like that
occurs.
A similar pattern of fractured confi-
dence exists in bank stocks. Major US
banks were among the biggest declin-
ers on Tuesday, with the KBW Bank
index off nearly 2 per cent.
Late on Friday, the Federal Housing
Finance Agency sued 17 large US
banks over subprime mortgage-
backed bonds, compounding fears
about the health of the sector.
JPMorgan and Bank of America,
both subjects of the suit, fell more
than 3 per cent on Tuesday.
The CBOE Volatility Index, or Vix, a
measure of expected market turbu-
lence, posted its biggest gain in nearly
two weeks, climbing 9.4 per cent to
37.08.
Right now there is a tremendous
amount of uncertainty, said Michael
Sheldon, chief market strategist at
RDM Financial in Westport,
Connecticut.
There is a decent chance that we
are in a bear market.
The Dow Jones industrial average
dropped 100.96 points, or 0.90 per
cent, to 11,139.30. The Standard &
Poors 500 Index fell 8.73 points, or
0.74 per cent, to 1,165.24. The Nasdaq
Composite Index lost 6.50 points, or
0.26 per cent, to 2,473.83.
Traders are monitoring lows set by
major global indexes during the sell-
off in the first half of August. So far,
only Germanys DAX, down nearly 25
per cent this year, and Japans Nikkei
have fallen below those levels.
A
RALLY by hard-pressed com-
modity issues hauled Britains
top share index higher yester-
day as investors fished choppy
waters for bargains after sharp falls
in the past two sessions.
At the close, the FTSE 100 index
was up 54.26 points, or 1.1 per cent,
at 5,156.84, having hit a peak of
5,190.2 in the morning and reversed
to a low of 5,086.7 in the afternoon.
It was very choppy, but investors
in London chose to ride a hard-
fought rally by commodity issues
today after the recent slide,
although the sands could shift
again at any time, said Mic Mills,
head of electronic trading at ETX
Capital.
The UK blue-chip index shed near-
ly six per cent in the previous two
sessions in response to poor US jobs
data, downbeat global PMI econom-
ic data and worries over the euro
zone debt crisis.
Beaten-down mining and inte-
grated oil stocks led the bounce
back, having so far experienced
their worst year since 2008, the year
Lehman Brothers collapsed.
Global miners Xstrata and Rio
Tinto added 2.2 and 1.7 per cent,
while oil major BP rose 2.3 per cent.
Whitbread was the top blue-chip
gainer, up 7.3 per cent after the
countrys biggest hotel and coffee-
shop operator reported accelerating
growth in quarterly sales.
The UK consumer outlook may
be stuttering, but there is no evi-
dence of the malaise affecting
Whitbread, which released an excel-
lent trading statement, Evolution
Securities said.
Other defensively perceived
issues also saw support, led by
Imperial Tobacco and British
American Tobacco, up 3.2 per cent
and 1.7 per cent, while food retailer
Tesco added 3.7 per cent.
Mobile telecoms heavyweight
Vodafone also lent its considerable
strength to the blue chips, rising 1.7
per cent as UBS added the stock to
its European Key Call list.
Banks were higher as a sector
after a choppy session, mainly
thanks to gains by global heavy-
weight HSBC, up 0.9 per cent, while
Lloyds Banking Group added 0.3 per
cent.
But Royal Bank of Scotland and
Barclays were the top two FTSE 100
fallers, down 2.8 per cent and 2.2
per cent, respectively, tracking falls
by US financials.
Big US banks, in talks with state
officials on settling claims of
improper mortgage practices, have
been offered a deal that could limit
legal liability in return for a multi-
billion-dollar payment.
US blue chips were 1.9 per cent
lower by Londons close as traders
returned following the Labor Day
holiday, catching up with drops by
global markets on Monday.
Back in London, retailers suffered
as Citigroup downgraded its sector
rating to neutral and cut its earn-
ings forecast for the sector in light
of gloomy economic indicators.
Blue chip Marks and Spencer
shed 0.2 per cent, while mid cap
Halfords dropped four per cent as
the broker cut its ratings for both of
the high street retailers to hold.
Technical analysis of the FTSE 100
index suggests caution. The UK
market could still be looking at a
fall of significant proportions from
current levels, with an implied
downside target of around 4,500. In
the meantime, last months intra-
session low, at 4,791, is going to be
critical, said Bill McNamara, tech-
nical analyst at Charles Stanley.
A rally in commodities gives
a rare fillip to the FTSE 100
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to [email protected]
ANALYSIS l Antofagasta
Jul Aug Sep
p
1,400
1,200
1,244.00
6 Sept
ANTOFAGASTA
Canaccord Genuity rates the miner a buy with a 1,580p target price as it
believes civil unrest in Chile will lead to a promised cut in corporation tax
there being scrapped. That would hurt Antofagastas earnings per share fore-
casts, and the broker has cut its estimates by three per cent for 2012 and fur-
ther ahead. Canaccord says its dividend yield is currently six per cent and it is
likely to issue another special dividend by the end of the year.
ANALYSIS l Imperial Tobacco
Jul Aug Sep
p
2,200
2,100
2,000
2,105.00
6 Sept
IMPERIAL TOBACCO
Morgan Stanley has added the cigarette maker to its best ideas list with an
overweight rating based on its research in August, which concluded that
the company has ample scope for cost cuts to add leverage to its robust and
improving top-line trends. MS believes Imperial reflects attractive tobacco
industry features such as strong pricing power, high volumes, few input cost
pressures and cash generation, at a low valuation compared to its peers.
ANALYSIS l Debenhams
Jul Aug Sep
p
70
60
52.90
6 Sept
DEBENHAMS
Numis rates Debenhams a hold with a 55p target price after cutting its
forecasts for its 2012 pre-tax profit by 26m to 152m, ten per cent below
the current consensus. The broker believes negative retail sector data shows
consumer spending is unlikely to recover in 2012 and views Debenhams as a
target for short interest despite its fundamentals being strong and the com-
pany well managed.
06Jun 24Jun 14Jul 23Aug 03Aug
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5,156.84
6 Sept
Emap International
Duncan Painter has been appointed as chief
executive of the publisher and events business
to replace David Gilbertson, who stepped down
in May. Painter is currently managing director of
the BSkyB subsidiary Sky IQ, which provides
customer intelligence services to BSkyB and
FTSE 100 firms including Centrica and Zurich
Financial Services. Previous roles included global
product leader at Experian Marketing Services
and chief executive of consumer intelligence
company ClarityBlue.
Y
ESTERDAY morning, the Swiss
National Bank (SNB) took the bold
move to put in place currency con-
trols in the form of a minimum
exchange rate between the euro and the
Swiss franc at SFr1.20. The SNB said that it
will protect the franc with the utmost
determination. The SNB has also indicated
that it is prepared to buy foreign currencies
in unlimited quantities.
The SNB unsuccessfully made moves ear-
lier in the year as it attempted to relieve the
impact of the overvalued franc on the Swiss
export economy.
One can understand the desire of the
Swiss authorities to intervene in the cur-
rency markets. As central banks have med-
dled in the markets with money printing
in the UK, US and Eurozone, investors have
been left with only one feasible haven cur-
rency option: the Swiss franc. As a result,
every sovereign debt crisis, and every whis-
pered rumour of a further round of quanti-
tative easing, has sent investors running for
the safety of the Swiss currency, strength-
ening it more each time against its major
currency pairs. This has hit Swiss exports
hard. (see chart, above right) At the same
time, Swiss interest rates have been lower
than those in emerging markets in Eastern
Europe, such as Hungary and Romania. As
a result, many people took advantage of
the advantageous borrowing rate to take
out mortgages in Swiss francs. These bor-
The move by the central bank to limit franc
strength could be the casus belli for a full
blown currency battle, writes Craig Drake
Swiss move
signals end of
the phoney war
W
E NEED a fiscal union," declared Joaquin
Almunia, the EU Competition
Commissioner, and he couldnt have been
more right. Euro-dollar has declined more
than 300 points since last week, as renewed con-
cerns about the fiscal viability of the union have once
again put pressure on the single currency. The latest
troubles stemmed from Finland and Italy: the former
tried to work out a side deal with Greece by asking
for collateral guarantees for the second round of
bailouts, while the later reneged on its initial plans for
an austerity budget, putting into question the Italian
governments commitment to fiscal discipline. The
conflict in the Eurozone is devolving into an every
man for himself affair, and this antagonistic attitude
that has pitted much of Northern Europe against
Southern Europe is threatening to undermine the cur-
rency. German Chancellor Angela Merkel has staked
her political future on the issue of Eurozone fiscal
unity, but so far has suffered steep political losses for
her views. Her party saw its fifth election loss this
year after she failed to persuade voters in her home
state of the need for further financial assistance to
the troubled economies in the south. Merkels
Christian Democratic Union collected only 23.1 per-
cent of the vote its worst tally since voting began in
the state after German reunification in 1990. The
result means that Merkels national coalition has been
defeated or lost votes in all six German state elec-
tions so far this year, as voters resist her attempts to
pay more taxpayer money for Eurozone bailouts. This
week, the whole issue of bailouts may face further
trouble from a surprising source. Today, the
Bundesverfassungsgericht the constitutional court
of Germany will rule on the constitutionality of
bailouts in general. The lawsuit, presented by German
academics and businessmen, argues that bailouts
compromise the financial rights of the German parlia-
ment (Bundestag), and so undermine German democ-
racy. If the court sides with the plaintiffs, it could
create yet another political crisis in the Eurozone and
push euro-dollar through the key $1.4000 level as
fears of fracture escalate.
EURO FACES
NEW TROUBLE
OVER BAILOUT
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
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11
rowers were put to the sword when the
franc began to rise, and default rates
spiked. With Swiss, Austrian and German
banks sitting on hefty potential losses, it is
likely that this situation influenced the
SNBs policy decision.
However, up to now, the measures taken
Wealth Management| Foreign Exchange
24
Flashback: the 1973 Swiss Central Bank intervention
T
HOUGH the Swiss National Banks
(SNB) recent move is a bold one, it is
not the first time that the central bank
has imposed currency controls in order
to try and tame Swiss franc strength.
While financial turmoil in the US has driven
capital flows into the Swiss franc today,
four decades ago it was political and mili-
tary problems. In 1971, as the cost of fight-
ing the Vietnam war got out of hand, the
US saw a sharp rise in inflation and the US
was pushed into a trade deficit. After Nixon
came off the gold standard in August 1971,
markets werent convinced that the US gov-
ernment was serious about addressing its
financial woes.
With low inflation, the Swiss franc
was seen as a safe haven, and
investors piled into the franc
sound familiar?
In 1973, the Swiss imposed capital
controls, including negative interest
rates on Swiss franc deposits by
non-residents. (The Swiss LIBOR is
currently -0.00333 per cent)
Though the measures were initially
a success, within 6 months the franc had
begun to strengthen again, with the dollar-
Swiss franc hitting a low in 1978 of SFr1.50.
Jan- 71 73 72 75 74 77 76 79 78 80
4.7
4.2
3.7
3.2
2.7
2.2
1.7
1.2
ANALYSIS l Swiss 1973 intervention
Dollar - Swiss franc
cessful anticipation of his failure. However,
in this case, there is a clear difference. The
Swiss are protecting their currency from
strengthening further rather than weaken-
ing, says Chris Towner, director of FX advi-
sory services at HiFX. In order to protect
your currency from weakening further, the
market would immediately look at the vol-
ume of the foreign exchange reserves that
the central bank holds, just as Soros and co
did back in 1992 with the Bank of England.
Towner points out that the SNB is using its
own currency as ammunition and so can
be that much more bold they own the
printing press.
TRADING THE NEWS
Many of the big institutions had their stops
blown out by the SNB move, and the shift
yesterday morning will have done big dam-
age to leveraged traders long Swiss franc.
One hundred pip moves in minutes in
sterling-Swiss franc and euro-Swiss franc
will have seriously hurt traders as they just
gapped massively with no opportunities for
stops to be filled on the way up, says Ian
OSullivan, head of marketing at SpreadCo.
Interestingly, OSullivan adds that on
Monday there was a lot of market chatter
about interest in buying short-dated SFr1.14
calls for Wednesday expiry, looking like
leaked news of the SNB move.
Any position taken by traders on the
Swiss franc has to be seen as a position on
the anticipated success or failure of the
SNB move. Either way, its an interesting
trading opportunity, potentially, says
David Jones, chief market strategist for IG
Index. If you take the view that the SNB is
doomed to failure, the SNB has given
traders an opportunity to go short on the
dollar-Swiss franc 600 points higher than it
was on Monday. If you think it is going to be
successful then Jones points out that this is
the start of a major trend reversal.
Its a massive gamble from the SNB and
could prove very costly, especially if the tide
doesnt turn and the US goes down the
route of QE3, says Angus Campbell, head
of sales for Capital Spreads. Watch this
space, but for now the upward trend for the
Swissie remains firmly intact.
by the SNB have been futile. When it comes
to currency intervention, it is for all intents
and purposes impossible to reverse a strong
currency flow. The only hope is usually to
tip a change in trend when it is on the cusp
of this reversal. Currency pegs have never
worked in the long term, and if its such a
silver bullet, why havent the Japanese tried
it given they have been trying for years
without success to weaken their currency?
asks Michael Hewson, market analyst for
CMC Markets.
PUSHING AGAINST THE TIDE
So what chance of success does this move
have? One reaction to the SMB move is that
it might compare to the move made by
Norman Lamont and his adviser David
Cameron in 1992, when the Bank of
England spent billions of pounds buying
up the sterling being sold on the currency
markets as the UK tried to stay on the
exchange rate mechanism. Then, the cur-
rency markets bet against Lamont, selling
pounds and buying deutschemarks in suc-
ANALYSIS l Swiss Export Growth
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1.7
1.6
1.5
1.4
1.3
1.2
1.1
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Swiss Exports y/y (rhs)
Euro - Swiss Franc (lhs)
25
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Looking to sell Australian dollar-dollar
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold euro-dollar in late July at $1.4328 expecting an escalation in the
EU debt crisis, compounded by a downward revision in investors expec-
tations of global economic growth that sets off risk aversion and drives
the dollar on safe-haven demand. These larger themes appear to have
reclaimed their dominance over price action, with the euro starting to
accelerate lower. Remain short, aiming for a break below $1.40 to
expose initial target at $1.3975. Stop-loss on daily close above $1.4535.
Rallies have finally stalled by the upper Bollinger band and the market is
in the process of carving a fresh lower top below the $1.1080 post-float
record highs, ahead of the next major downside extension back below
parity. The next short-term support comes in by $1.0400 and a break
below this will help to confirm bias and accelerate declines. Sell at
$1.0395, aiming for a $1.0000 objective. A stop-loss will be triggered
at $1.0560.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Long Aussie-Kiwi, long dollar-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
The market finally took notice of the Eurozones financial troubles
and the result was a sharp euro-dollar drop that easily hit reasonable
targets. This pair could certainly do more; but the combination of
$1.40-$1.38 zone support and the threat of QE3 could make this a
choppy affair. Top setups for now remain dollar-yen above 77.50 (a
long-term projection requiring fundamentals) and Aussie-Kiwi,
should it break above the NZ$1.2700 head-and-shoulders neckline.
Yesterdays SNB move
was the first shot of
the war
Picture: REUTERS
T
HE Royal Bank of Australia left
rates unchanged as expected this
month, but Australian dollar-dollar
traders are keen to sell any rallies
in Aussie dollar as it heads towards
$1.060-$1.0650. This is the site of the
50 and 100-day moving averages and
support/resistance going back several
months. Strong support may not come
in again until around $1.040. Spread Co
offers Australian dollar-dollar at
$1.0517$1.0519.
The Swiss National Banks (SNB)
announcement that it will defend the
SFr1.2000 level against the euro with
utmost determination saw the euro
strengthen significantly against the
Swissie to bring the rate back above
the SFr1.2000 level. The recent
strength in the Swissie has led many to
believe that the SNB is about to inter-
vene and yesterdays comments make
that possibility inevitable. The
SFr1.2000 level could remain support
for quite some time now and Capital
CFDs quotes a price of SFr1.2035-
SFr1.2039 for euro-Swiss franc.
The euro has had a rough time
recently due to ongoing concerns for
the eurozone debt situation. Global
equities have been falling, and traders
have sought after the safe currencies.
Against the dollar, the single currency
has fallen consistently for five days.
However we could be seeing a bit of a
bear squeeze at the moment. The pair
has broken out of a medium-term
declining trend line, so there could be
some positivity on its way. Capital
Spreads quotes $1.4185-$1.4186 for
euro-dollar.
Craig Drake
THE TIPSTER
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CREATE MORE VALUE
German voters wont
bankroll peripheral
profligacy forever
Foreign exchange traders can prot from the rocky road
towards closer integration or separation, writes Philip Salter
W
HILE Greece and Italy con-
tinue to take a hammering
in the bond markets,
traders are today shifting
their gaze to Germany, as its constitu-
tional court decides on whether the
bailouts are legal. Under article 103 of
the Maastricht Treaty, neither the
Community or any other member
state is liable for or can assume the
commitments of any other member
state. Despite the clear infringement,
the court isnt expected to rule the
bailouts illegal although it is expect-
ed to put in place democratic over-
sights making it harder to send
taxpayer funds south. Even this will
weigh heavily on the euro and things
are likely to get a lot worse for holders
of the single currency.
Following Sundays sixth local elec-
tion defeat in a row, Chancellor
Angela Merkel is under pressure from
voters to extricate German taxpayers
from the position of the Eurozones
backstop. These are tough times for
the Chancellor. After todays constitu-
tional court decision, the next hurdle
will be Berlins House of
Representatives election on the 18
September, and then on the 29
September there will be a vote on the
European Financial Stability Facility
(EFSF) emergency bailout fund oppo-
sition parties will likely put up a fight.
A COSTLY BREAK-UP
In their latest paper, Euro Break-Up
The Consequences, economists at UBS
dare to think the unthinkable: a
break-up of the euro. They conclude
that because it will be costly, the prob-
ability of failure is close to zero, esti-
mating that a weak country leaving
the euro would incur a cost of
between 9,500 and 11,500 per per-
son, with a further 3,000 to 4,000
per person, per year, over subsequent
years. A stronger country like
Germany leaving the euro would
apparently burden citizens with
between 6,000 to 8,000, followed by
4,500 to 3,500 per person over subse-
quent years. The paper then estimates
that the cost of bailing out Greece,
Ireland and Portugal entirely in the
wake of the default of those countries
would be a little over 1,000 per per-
son, in a single hit.
It is good to see numbers put on a
break-up, but three factors remain
unexplored in UBSs paper that are
likely to throw a spanner in the works
of the fiscal integration the econo-
mists expect. Firstly, there is no assur-
ance that these bailouts would be a
one-off. Secondly, if the economies of
Italy and Spain join the list of coun-
tries requiring German transfer pay-
ments, UBSs numbers would be
turned on their head. The third rea-
son a euro breakup might happen is
that if economic rationality really was
the driver of political decisions, the
Eurozone wouldnt have been created
in the first place.
POLITICS TRUMPS ECONOMICS
Politics got Europe into this mess and
it is politics that will determine the
euros fate. The memory of fascism
was the impetus behind the founding
of the European Coal and Steel
Community (ECSC) in 1951, as an
attempt to unify Western Europe
through economic reliance. And the
German authorities were key in the
further expansion and integration of
Eastern Europe into the fold. The West
Germans shouldered the costs of uni-
fication of East and West. German eco-
nomic might was key to founding the
euro, but bailing out the
Mediterranean could still be a step too
far.
Chris Beauchamp of IG Index
thinks the euro has been good for
Germany in making exports cheaper.
Germans are getting fed up of being
the fall-guy for the rest of the
Eurozone, he says, and Merkel hasnt
done enough to explain the benefits
of the euro to the German populace,
so popular support for the currency is
ebbing. A return to the deutschmark
could hurt German industry, but
national will could easily overcome
rational economic considerations.
Although Beauchamp thinks fiscal
integration is the most likely out-
come, he says its conceivable that a
weak member of the euro is forced to
exit. Simon Smith of FxPro thinks
without greater fiscal and political
integration countries will have to
leave the euro, or soft and hard euros
will emerge. Smith says: Whichever
road is taken, its going to be painful.
That said, the current situation of
piecemeal solutions to a broken sys-
tem is clearly not working and becom-
ing ever more painful for all involved.
Turmoil is inevitable there are few
scenarios in which there wont be
opportunities to bet against the euro.
FOREIGN EXCHANGE
The UBS report is blunt in its advice to
investors worried about Eurozone col-
lapse: The only way to hedge against
a euro break-up scenario is to own no
euro assets at all. However, because
forex trading is a zero sum game, it is
possible to profit from a Eurozone
rout. Rishi Patel of FairFX says con-
cerns that policy makers are failing to
address the Eurozone debt crisis is
already pushing investors back
towards the dollar, with euro-dollar
trading towards the lower end of the
$1.41-$1.45 range. Beauchamp says for
traders predicting Eurozone chaos,
the euro-Swiss franc pair would be
normally be the obvious choice, how-
ever, possible intervention puts the
Swissie in the uncertain territory of
the yen. As such, boring old euro-dol-
lar could see some moves if Ben
Bernanke holds off on more quantita-
tive easing and the Eurozone keeps
getting worse. Beauchamp also picks
out the Norwegian krone and even
sterling as potential profitable pairs.
Merkel is under political pressure to turn her back on the Eurozone Picture: REUTERS
LON GD ONCE FIX AM...........1891.00 -5.50
SILVER LDN FIX AM ..................42.01 -0.92
MAPLE LEAF 1 OZ ....................44.58 1.03
LON PLATINUM AM................1877.00 -4.00
LON PALLADIUM AM...............766.00 -10.00
ALUMINIUM CASH .................2363.00 -36.00
COPPER CASH ......................8934.50 -115.50
LEAD CASH...........................2443.50 -81.50
NICKEL CASH......................21025.00 -540.00
TIN CASH.............................23870.00 -180.00
ZINC CASH ............................2132.00 -57.00
BRENT SPOT INDEX................113.17 -1.37
SOYA .....................................1436.00 0.00
COCOA..................................3092.00 0.00
COFFEE...................................289.20 0.00
KRUG.....................................1964.90 1.00
WHEAT ....................................169.03 -0.97
AIR LIQUIDE........................................87.58 1.05 100.65 80.90
ALLIANZ..............................................62.89 -0.96 108.85 62.07
ALSTOM ..............................................27.92 -1.00 45.32 27.63
ANHEUS-BUSCH INBEV ....................37.28 0.85 46.33 33.85
ARCELORMITTAL...............................13.01 -0.07 28.55 12.83
AXA........................................................9.62 -0.16 16.16 9.27
BANCO SANTANDER...........................5.65 -0.12 9.80 5.54
BASF SE..............................................44.40 -0.06 70.22 42.09
BAYER.................................................37.75 -3.08 59.44 35.36
BBVA......................................................5.60 -0.10 10.21 5.50
BMW ....................................................50.66 -0.21 73.85 43.26
BNP PARIBAS.....................................29.66 -1.64 59.93 29.26
CARREFOUR ......................................16.47 -0.28 36.06 16.35
CREDIT AGRICOLE..............................5.57 -0.28 12.92 5.44
CRH PLC..............................................11.31 0.19 17.40 10.87
DAIMLER.............................................32.36 -0.79 59.09 32.13
DANONE..............................................46.13 0.19 53.16 42.08
DEU.BOERSE OFFRE ........................38.17 0.43 55.75 37.03
DEUTSCHE BANK..............................23.51 -0.21 48.70 23.10
DEUTSCHE TELEKOM.........................8.24 -0.09 11.38 8.22
E.ON.....................................................13.46 -0.12 25.54 13.19
ENEL......................................................3.10 -0.05 4.86 3.08
ENI .......................................................13.02 -0.15 18.66 11.83
FRANCE TELECOM............................11.97 -0.23 17.45 11.91
GDF SUEZ ...........................................19.63 -0.42 30.05 18.32
GENERALI ASS...................................11.25 -0.30 17.05 10.34
IBERDROLA..........................................4.61 -0.10 6.50 4.59
ING GROEP CVA...................................4.99 -0.19 9.50 4.94
INTESA SANPAOLO.............................1.00 -0.03 2.53 0.95
KON.PHILIPS ELECTR.......................12.76 -0.54 25.45 12.68
L'OREAL..............................................72.08 -0.44 91.24 71.00
LVMH..................................................109.25 0.25 132.65 96.06
MUNICH RE.........................................83.56 -0.06 126.00 82.60
NOKIA....................................................4.32 0.10 8.49 3.33
REPSOL YPF.......................................18.46 -0.13 24.90 17.31
RWE.....................................................22.77 -0.37 55.88 22.71
SAINT-GOBAIN...................................30.67 -0.65 47.64 30.00
SANOFI ................................................48.88 0.80 56.82 42.85
SAP......................................................35.79 0.35 46.15 32.88
SCHNEIDER ELECTRIC.....................40.16 -0.94 61.83 39.82
SIEMENS .............................................65.70 -0.26 99.39 64.80
SOCIETE GENERALE.........................18.93 -1.33 52.70 18.82
TELECOM ITALIA..................................0.77 -0.02 1.16 0.76
TELEFONICA ......................................13.24 -0.26 19.69 13.01
TOTAL..................................................31.69 -0.32 44.55 30.34
UNIBAIL-RODAMCO SE...................140.80 -1.55 162.95 124.50
UNICREDIT............................................0.80 -0.04 2.05 0.76
UNILEVER CVA...................................23.21 0.24 24.08 20.82
VINCI ....................................................33.16 -0.18 45.48 32.05
VIVENDI ...............................................15.59 -0.51 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5156.84 54.26 1.06
FTSE 250 INDEX . . . . . . . 10071.17 -12.94 -0.13
FTSE UK ALL SHARE . . . . 2678.25 23.01 0.87
FTSE AIMALL SH . . . . . . . . 757.59 -4.20 -0.55
DOWJONES INDUS 30 . . 11139.30 -100.96 -0.90
S&P 500. . . . . . . . . . . . . . . . 1165.24 -8.73 -0.74
NASDAQ COMPOSITE . . . 2473.83 -6.50 -0.26
FTSEUROFIRST 300 . . . . . . 903.87 -6.19 -0.68
NIKKEI 225 AVERAGE. . . . 8590.57 -193.89 -2.21
DAX 30 PERFORMANCE. . 5193.97 -52.21 -1.00
CAC 40 . . . . . . . . . . . . . . . . 2965.64 -33.90 -1.13
SHANGHAI SE INDEX . . . . 2470.52 -8.22 -0.33
HANG SENG. . . . . . . . . . . 19710.50 94.10 0.48
S&P/ASX 20 INDEX . . . . . . 2442.90 -39.60 -1.60
ASX ALL ORDINARIES . . . 4160.70 -63.50 -1.50
BOVESPA SAO PAOLO. . 56607.30 1608.89 2.93
ISEQ OVERALL INDEX . . . 2447.93 13.85 0.57
STI . . . . . . . . . . . . . . . . . . . . 2774.33 1.16 0.04
IGBM. . . . . . . . . . . . . . . . . . . 802.23 -13.33 -1.63
SWISS MARKET INDEX. . . 5367.24 224.25 4.36
Price Chg %chg
3M........................................................78.08 -1.27 98.19 76.50
ABBOTT LABS ...................................51.29 0.25 54.24 45.07
ALCOA.................................................11.77 -0.27 18.47 10.46
ALTRIA GROUP..................................26.83 0.11 28.13 22.58
AMAZON.COM..................................216.18 6.18 227.45 132.05
AMERICAN EXPRESS........................48.06 -0.45 53.80 37.33
AMGEN INC.........................................54.52 0.42 61.53 47.66
APPLE...............................................379.74 5.69 404.50 248.57
AT&T....................................................27.83 -0.22 31.94 27.06
BANK OF AMERICA.............................6.99 -0.26 15.31 6.01
BERKSHIRE HATAW B.......................68.37 -1.00 87.65 66.51
BOEING CO.........................................62.77 -1.26 80.65 56.01
BRISTOL MYERS SQUI ......................29.24 0.23 30.00 20.05
CATERPILLAR....................................85.70 0.32 116.55 67.75
CHEVRON...........................................95.61 -0.80 109.94 76.47
CISCO SYSTEMS................................15.28 -0.13 24.60 13.30
CITIGROUP.........................................27.70 -0.70 51.50 25.40
COCA-COLA.......................................69.43 -0.31 71.10 56.86
COLGATE PALMOLIVE......................88.99 0.47 90.99 73.62
CONOCOPHILLIPS.............................65.70 -0.74 81.80 53.59
CVS/CAREMARK................................35.81 0.38 39.50 27.96
DU PONT(EI) DE NMR........................46.14 -0.62 57.00 41.84
EXXON MOBIL....................................71.15 -0.99 88.23 60.36
GENERAL ELECTRIC.........................15.25 -0.51 21.65 14.82
GOOGLE A........................................522.18 -2.66 642.96 460.31
HEWLETT PACKARD.........................23.63 -0.71 49.39 22.75
HOME DEPOT.....................................32.05 -0.13 39.38 28.13
IBM.....................................................165.11 -1.87 185.63 124.65
INTEL CORP .......................................19.54 -0.10 26.78 17.75
J.P.MORGAN CHASE.........................33.44 -1.19 48.36 32.31
JOHNSON & JOHNSON.....................64.64 0.57 68.05 57.50
KRAFT FOODS A................................34.08 -0.19 36.30 24.30
MC DONALD'S CORP ........................88.82 -0.27 91.22 72.14
MERCK AND CO. NEW......................32.25 -0.12 37.68 29.47
MICROSOFT........................................25.51 -0.29 29.46 23.65
OCCID. PETROLEUM.........................82.72 -0.69 117.89 73.86
ORACLE CORP...................................26.49 -0.48 36.50 22.35
PEPSICO.............................................62.45 -0.85 71.89 60.10
PFIZER ................................................18.65 0.19 21.45 16.21
PHILIP MORRIS INTL .........................67.81 -0.43 72.74 52.87
PROCTER AND GAMBLE ..................62.38 -0.17 67.72 56.57
QUALCOMM INC ................................49.45 -0.23 59.84 39.45
SCHLUMBERGER ..............................74.32 -0.10 95.64 55.08
TRAVELERS CIES..............................48.53 -0.34 64.17 46.62
UNITED TECHNOLOGIE ....................70.50 -0.54 91.83 66.91
UNITEDHEALTH GROUP...................45.71 -0.02 53.50 32.29
VERIZON COMMS ..............................35.22 -0.34 38.95 29.69
WAL-MART STORES..........................51.68 -0.35 57.90 48.31
WALT DISNEY CO ..............................31.76 -0.70 44.34 29.60
WELLS FARGO & CO.........................23.92 -0.28 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.831 0.00
LIBOR Euro - 12 months ................2.041 0.00
LIBOR USD - overnight...................0.143 0.00
LIBOR USD - 12 months.................0.814 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.250 -0.05
European repo rate.........................0.787 0.00
Euro Euribor ....................................1.089 0.00
The vix index ...................................38.03 4.11
The baItic dry index ........................1.750 0.01
Markit iBoxx...................................231.09 1.24
Markit iTraxx..................................179.54 15.35
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3979 0.0119
C/ 0.8769 0.0020
C/ 108.43 0.0840
/C 1.1406 0.0024
/$ 1.5938 0.0174
/ 123.65 0.3421
FTSE 100
5156.84
54.26
FTSE 250
10071.17
12.94
FTSE ALLSHARE
2678.25
23.01
DOW
11139.30
100.96
NASDAQ
2473.83
6.50
S&P 500
1165.24
8.73
RPC Group . . . . . . . .314.9 0.2 384.8 215.4
Smiths Group . . . . . .928.5 -6.5 1429.0 907.5
Brown (N.) Group . . .265.8 2.1 311.2 229.4
Carpetright . . . . . . . . .519.0 -13.0 835.5 507.5
Debenhams . . . . . . . . .52.9 0.6 77.4 50.3
Dignity . . . . . . . . . . . .773.0 4.0 833.0 633.0
Dixons RetaiI . . . . . . .10.6 -0.4 28.5 10.5
DuneImGroup . . . . . .422.0 6.4 550.0 378.4
HaIfords Group . . . . .280.5 -11.6 504.5 277.8
Home RetaiI Group . .115.7 0.7 235.0 112.2
Inchcape . . . . . . . . . .285.1 -11.5 425.4 280.7
JD Sports Fashion . .842.0 17.0 1030.0 726.0
Kesa EIectricaIs . . . . .95.0 -6.3 174.0 94.4
Kingfisher . . . . . . . . .225.6 -1.4 287.1 211.1
Marks & Spencer G . .301.8 -0.6 427.5 296.2
Mothercare . . . . . . . .344.5 0.8 627.5 340.4
Next . . . . . . . . . . . . .2304.0 0.0 2426.0 1868.0
Sports Direct Int . . . .210.0 -0.4 266.2 113.5
WH Smith . . . . . . . . . .488.0 7.8 523.0 422.0
Smith & Nephew . . . .599.0 5.5 742.0 521.0
Synergy HeaIth . . . . .894.0 22.0 981.0 690.0
Barratt DeveIopme . . .76.1 -2.4 119.0 67.5
BeIIway . . . . . . . . . . . .573.0 -9.0 753.5 511.0
YuIe Catto & Co . . . . .167.8 2.1 253.0 146.5
BaIfour Beatty . . . . . .234.7 -2.5 357.3 228.6
KeIIer Group . . . . . . .353.0 -6.0 698.5 346.0
Kier Group . . . . . . . .1136.0 -12.0 1418.0 1030.0
Drax Group . . . . . . . .516.0 -1.0 536.5 353.6
Scottish & Southe . .1269.0 21.0 1423.0 1108.0
Domino Printing S . .545.0 4.5 705.0 469.0
HaIma . . . . . . . . . . . . .343.7 -2.1 429.6 282.5
Laird . . . . . . . . . . . . . .144.1 -1.1 207.0 127.9
Morgan CrucibIe C . .255.2 -4.4 357.1 203.9
Renishaw . . . . . . . . .1322.0 -26.0 1886.0 865.0
Spectris . . . . . . . . . .1404.0 -15.0 1679.0 963.0
Aberforth SmaIIer . . .559.5 4.0 714.0 526.0
AIIiance Trust . . . . . .331.5 2.5 392.7 322.5
Bankers Inv Trust . . .364.1 6.2 428.0 354.0
BH GIobaI Ltd. GB .1173.0 10.0 1175.0 1058.0
BH GIobaI Ltd. US . . . .11.6 0.1 11.6 10.4
BH Macro Ltd. EUR . . .19.4 0.2 19.5 15.8
BH Macro Ltd. GBP 2007.0 17.0 2007.0 1630.0
BH Macro Ltd. USD . . .19.4 0.2 19.5 15.8
BIackRock WorId M .676.5 6.5 815.5 589.0
BIueCrest AIIBIue . . .169.0 1.0 176.2 162.4
British Assets Tr . . . .118.6 3.2 140.5 113.0
British Empire Se . . .471.1 6.1 533.0 445.5
CaIedonia Investm .1571.0 6.0 1928.0 1538.0
City of London In . . .265.4 1.4 306.9 257.0
Dexion AbsoIute L . .141.1 1.0 151.0 135.2
Edinburgh Dragon . .223.0 3.0 262.1 213.0
Edinburgh Inv Tru . . .438.8 4.3 492.2 414.9
EIectra Private E . . .1384.0 18.0 1755.0 1295.0
F&C Inv Trust . . . . . .276.6 4.0 327.9 267.2
FideIity China Sp . . . . .83.7 1.0 128.7 80.0
FideIity European . .1003.0 8.5 1287.0 985.0
FideIity SpeciaI . . . . .468.1 2.6 595.0 459.5
HeraId Inv Trust . . . . .446.2 6.2 545.5 401.5
HICL Infrastructu . . . .115.5 0.1 121.3 112.0
Impax Environment . .98.6 0.6 130.5 98.0
JPMorgan American .754.0 12.0 916.0 716.5
JPMorgan Asian In . .203.0 2.5 250.8 198.5
JPMorgan Emerging .525.0 6.0 639.0 499.3
JPMorgan European .744.0 -4.0 983.5 683.5
JPMorgan Indian I . . .375.3 3.3 502.0 354.8
JPMorgan Russian .525.0 3.0 755.0 510.0
Law Debenture Cor . .328.8 3.3 385.0 306.9
MercantiIe Inv Tr . . . .915.5 12.5 1137.0 895.0
Merchants Trust . . . .358.0 5.5 431.8 348.7
Monks Inv Trust . . . .333.0 9.7 367.9 311.0
Murray Income Tru . .598.0 11.5 673.0 577.0
Murray Internatio . . .882.0 3.0 991.5 845.5
PerpetuaI Income . . .248.0 6.0 276.0 225.9
PoIar Cap TechnoI . .313.8 2.9 391.2 295.1
RIT CapitaI Partn . . .1220.0 21.0 1334.0 1110.0
Scottish Inv Trus . . . .437.0 5.6 524.0 423.5
Scottish Mortgage . .665.5 18.0 781.0 601.5
SVG CapitaI . . . . . . . .256.0 4.0 279.8 153.8
TempIe Bar Inv Tr . . .845.0 18.0 952.0 782.0
TempIeton Emergin .573.5 7.5 689.5 554.0
TR Property Inv T . . .168.7 1.4 206.1 147.8
TR Property Inv T . . . .76.3 0.0 94.0 66.0
Witan Inv Trust . . . . .438.0 5.7 533.0 428.0
3i Group . . . . . . . . . . .197.0 -0.8 340.0 195.5
3i Infrastructure . . . .120.7 0.0 125.2 112.9
Aberdeen Asset Ma .196.0 0.3 240.0 136.9
Ashmore Group . . . .398.2 -6.2 414.5 301.4
Brewin DoIphin Ho . .128.5 -0.8 185.4 117.0
CameIIia . . . . . . . . . .9250.0 -32.510950.0 8350.0
CharIes TayIor Co . . .137.0 2.5 198.3 122.0
City of London Gr . . . .76.3 0.0 93.6 76.3
City of London In . . .372.3 -2.8 461.5 278.5
CIose Brothers Gr . . .691.0 -4.0 888.5 656.5
CoIIins Stewart H . . . .67.5 -0.3 90.8 67.0
EvoIution Group . . . . .91.0 0.0 93.0 62.3
F&C Asset Managem .65.6 -0.3 92.9 58.7
Hargreaves Lansdo .483.5 5.0 646.5 386.0
HeIphire Group . . . . . . .2.4 0.2 39.0 2.2
Henderson Group . . .119.1 -3.8 173.1 117.8
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .463.0 0.1 570.5 391.3
IG Group HoIdings . .437.9 -0.3 553.0 393.6
Intermediate Capi . . .230.4 -3.5 360.3 204.8
InternationaI Per . . . .239.0 1.3 388.8 228.0
InternationaI Pub . . . .115.3 0.3 118.3 108.6
Investec . . . . . . . . . . .413.0 -6.6 538.0 378.7
IP Group . . . . . . . . . . . .48.0 1.3 54.5 27.9
Jupiter Fund Mana . .198.0 0.6 337.3 184.9
Liontrust Asset M . . . .75.5 -1.5 95.3 72.0
LMS CapitaI . . . . . . . . .61.5 4.0 64.8 43.3
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .860.0 -15.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .14.5 0.3 19.8 10.5
Man Group . . . . . . . . .209.0 -2.8 311.0 178.0
Paragon Group Of . .150.3 1.1 206.1 134.6
Provident Financi . .1080.0 -3.0 1124.0 728.5
Rathbone Brothers .1033.0 -2.0 1257.0 828.0
Record . . . . . . . . . . . . .29.5 0.0 52.0 20.3
RSM Tenon Group . . .27.5 0.5 66.3 21.3
Schroders . . . . . . . .1436.0 -9.0 1922.0 1373.0
Schroders (Non-Vo .1156.0 10.0 1554.0 1123.0
TuIIett Prebon . . . . . .356.8 -3.2 428.6 329.8
WaIker Crips Grou . . .49.0 0.0 51.5 45.0
BT Group . . . . . . . . . .162.6 -0.8 204.1 138.6
CabIe & WireIess . . . .36.9 0.1 61.1 31.3
CabIe & WireIess . . . .32.8 0.7 78.4 31.1
COLT Group SA . . . .103.6 0.7 156.2 102.5
TaIkTaIk TeIecom . . .130.0 3.0 168.3 119.8
TeIecomPIus . . . . . . .675.5 -14.5 704.5 364.5
Booker Group . . . . . . .69.5 0.8 77.9 45.0
Greggs . . . . . . . . . . . .483.9 -5.4 550.5 429.1
Morrison (Wm) Sup .291.4 6.3 308.3 262.7
Ocado Group . . . . . . .107.0 -3.0 285.0 106.0
Sainsbury (J) . . . . . . .288.9 1.8 395.0 280.4
Tesco . . . . . . . . . . . . .374.8 13.5 440.7 360.1
Associated Britis . .1054.0 16.0 1182.0 940.0
Cranswick . . . . . . . . .646.0 12.0 896.0 606.0
Dairy Crest Group . . .354.5 3.9 424.9 334.1
Devro . . . . . . . . . . . . .258.2 3.9 296.9 218.0
Premier Foods . . . . . . .12.2 -0.6 35.1 12.0
Tate & LyIe . . . . . . . . .577.0 7.0 656.0 438.5
UniIever . . . . . . . . . .2021.0 28.0 2081.0 1743.0
Mondi . . . . . . . . . . . . .512.0 -6.5 664.0 468.8
Centrica . . . . . . . . . . .286.8 0.5 346.1 285.4
InternationaI Pow . . .322.3 0.1 448.6 279.4
NationaI Grid . . . . . . .615.0 6.0 632.5 530.0
Northumbrian Wate .461.5 1.4 469.5 295.5
Pennon Group . . . . . .639.5 1.5 737.5 579.5
Severn Trent . . . . . .1428.0 8.0 1517.0 1306.0
United UtiIities . . . . .585.5 2.0 632.0 543.5
Cookson Group . . . . .442.6 -21.5 724.5 436.0
DS Smith . . . . . . . . . .196.0 -1.0 266.2 145.9
Rexam . . . . . . . . . . . .339.9 0.8 400.0 301.5
GIencore Internat . . .385.2 8.8 531.1 348.0
BAE Systems . . . . . .264.4 6.8 369.9 248.1
Chemring Group . . . .521.0 -11.5 736.5 485.0
Cobham . . . . . . . . . . .182.0 -0.4 245.6 173.4
Meggitt . . . . . . . . . . . .318.0 -11.0 397.6 272.1
QinetiQ Group . . . . . .117.5 -1.4 136.3 96.7
RoIIs-Royce Group . .616.0 8.5 665.0 557.5
Senior . . . . . . . . . . . . .140.0 -6.7 190.6 122.4
UItra EIectronics . . .1413.0 -7.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .177.9 -3.3 245.0 147.7
BarcIays . . . . . . . . . . .150.8 -3.4 333.6 145.5
HSBC HoIdings . . . . .509.2 4.7 730.9 502.5
LIoyds Banking Gr . . .30.8 0.1 77.6 27.6
RoyaI Bank of Sco . . .21.2 -0.6 50.2 19.7
Standard Chartere .1295.0 -4.5 1950.0 1269.5
AG Barr . . . . . . . . . . .1117.0 12.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .304.6 -2.3 503.5 289.9
Diageo . . . . . . . . . . .1220.0 10.0 1307.0 1070.0
SABMiIIer . . . . . . . . .2179.5 22.5 2340.0 1925.5
AZ EIectronic Mat . . .224.2 -4.8 338.1 210.0
Croda Internation . .1673.0 -6.0 2081.0 1342.0
EIementis . . . . . . . . . .144.1 -1.3 187.4 87.5
Johnson Matthey . .1569.0 3.0 2119.0 1541.0
Victrex . . . . . . . . . . .1224.0 -1.0 1590.0 1140.0
Price Chg High Low
BerkeIey Group Ho .1225.0 -11.0 1299.0 789.5
Bovis Homes Group .400.2 -0.2 464.7 326.5
Persimmon . . . . . . . .436.3 2.0 502.5 336.5
Reckitt Benckiser . .3206.0 23.0 3648.0 3015.0
Redrow . . . . . . . . . . . .115.4 -0.2 139.0 98.4
TayIor Wimpey . . . . . . .30.9 -0.5 43.3 22.3
Bodycote . . . . . . . . . .267.0 -5.6 397.7 237.7
Charter Internati . . . .774.0 -8.5 853.5 538.5
Fenner . . . . . . . . . . . .335.0 1.2 422.5 214.7
IMI . . . . . . . . . . . . . . . .791.5 -13.5 1119.0 718.0
MeIrose . . . . . . . . . . .277.0 -4.1 365.4 250.1
Northgate . . . . . . . . . .259.0 -8.2 346.7 196.3
Rotork . . . . . . . . . . .1623.0 -37.0 1895.0 1501.0
Spirax-Sarco Engi . .1751.0 0.0 2063.0 1637.0
Weir Group . . . . . . .1756.0 -11.0 2218.0 1283.0
Ferrexpo . . . . . . . . . . .353.2 3.2 499.0 292.4
TaIvivaara Mining . . .317.6 5.4 622.0 297.2
BBAAviation . . . . . . .161.0 0.3 240.8 156.0
Stobart Group Ltd . . .133.5 0.5 163.6 124.1
AdmiraI Group . . . . .1336.0 12.0 1754.0 1279.0
AmIin . . . . . . . . . . . . .298.9 0.0 427.0 295.0
Huntsworth . . . . . . . . .58.3 -0.3 86.0 58.3
Informa . . . . . . . . . . . .334.5 -5.4 461.1 325.1
ITE Group . . . . . . . . . .173.6 -4.6 258.2 154.5
ITV . . . . . . . . . . . . . . . . .53.8 -1.0 93.5 53.5
Johnston Press . . . . . . .5.0 -0.1 16.3 4.4
MecomGroup . . . . . .151.8 -5.3 310.0 150.0
Moneysupermarket. .107.3 0.5 120.4 71.5
Pearson . . . . . . . . . .1064.0 0.0 1207.0 926.0
PerformGroup . . . . .171.5 -1.6 234.5 150.0
Reed EIsevier . . . . . .482.6 -6.5 590.5 461.3
Rightmove . . . . . . . .1210.0 -41.0 1307.0 691.5
STV Group . . . . . . . . .110.0 1.0 168.0 89.8
Tarsus Group . . . . . .140.0 -1.5 165.0 112.5
Trinity Mirror . . . . . . . .41.3 0.8 124.0 37.5
United Business M . .431.9 -6.9 725.0 428.2
UTV Media . . . . . . . . .124.0 0.5 151.0 101.0
WiImington Group . . .87.3 -0.3 183.0 87.0
WPP . . . . . . . . . . . . . .592.0 -2.5 846.5 578.5
YeII Group . . . . . . . . . . .4.6 -0.1 16.7 4.3
African Barrick G . . .603.5 29.0 638.0 393.5
AngIo American . . .2383.0 14.5 3437.0 2234.0
AngIo Pacific Gro . . .286.2 -0.8 369.3 257.1
Antofagasta . . . . . . .1244.0 11.0 1634.0 1076.0
Aquarius PIatinum . .225.3 0.6 419.0 216.7
BHP BiIIiton . . . . . . .1977.5 23.5 2631.5 1846.0
BeazIey . . . . . . . . . . . .112.7 -0.6 139.2 109.6
CatIin Group Ltd. . . .342.9 -2.7 421.4 325.0
Hiscox Ltd. . . . . . . . . .349.7 6.3 424.7 340.5
Jardine LIoyd Tho . . .633.5 8.0 709.0 561.0
Lancashire HoIdin . . .648.5 -11.0 700.0 529.0
RSA Insurance Gro . .109.3 0.0 143.5 108.3
Aviva . . . . . . . . . . . . . .301.8 -5.3 477.9 297.6
LegaI & GeneraI G . . . .94.0 -0.6 123.8 91.3
OId MutuaI . . . . . . . . .113.7 1.1 145.2 103.2
Phoenix Group HoI . .520.0 -9.0 758.0 458.0
PrudentiaI . . . . . . . . .565.5 1.0 777.0 557.0
ResoIution Ltd. . . . . .251.9 -2.2 316.1 211.3
St James's PIace . . . .327.4 -13.8 376.0 236.2
Standard Life . . . . . . .192.1 1.7 244.7 172.0
4Imprint Group . . . . .230.0 5.0 295.0 195.0
Aegis Group . . . . . . .123.5 -2.0 163.5 114.5
BIoomsbury PubIis . .100.5 0.5 138.0 98.0
British Sky Broad . . .645.5 4.5 850.0 618.5
Centaur Media . . . . . . .38.0 -0.8 73.0 37.0
Chime Communicati .180.8 0.8 298.5 173.0
Creston . . . . . . . . . . . .88.0 1.0 121.0 78.5
DaiIy MaiI and Ge . . .372.0 -5.3 594.5 363.3
Euromoney Institu . .547.5 -20.0 736.0 546.0
Future . . . . . . . . . . . . . .13.0 1.0 30.0 11.5
Haynes PubIishing . .235.0 0.0 262.5 202.5
Centamin Egypt Lt . .106.2 0.9 197.1 89.7
Eurasian NaturaI . . .630.5 5.5 1125.0 585.5
FresniIIo . . . . . . . . . .2064.0 78.0 2100.0 1100.0
GemDiamonds Ltd. .210.0 0.0 306.0 179.8
HochschiId Mining . .509.0 6.0 680.0 360.0
Kazakhmys . . . . . . . .993.5 4.0 1671.0 918.0
Kenmare Resources . .41.5 1.5 59.9 17.2
Lonmin . . . . . . . . . . .1209.0 2.0 1983.0 1103.0
New WorId Resourc .560.5 14.0 1060.0 514.5
PetropavIovsk . . . . . .859.0 17.0 1252.0 676.0
RandgoId Resource 6940.0 205.0 7070.0 4425.0
Rio Tinto . . . . . . . . .3549.0 60.5 4712.0 3387.5
Vedanta Resources 1342.0 25.0 2559.0 1225.0
Xstrata . . . . . . . . . . . .978.3 20.9 1550.0 933.4
Inmarsat . . . . . . . . . . .457.8 2.6 724.5 389.7
Vodafone Group . . . .160.2 2.7 181.9 155.1
Genesis Emerging . .465.0 6.5 568.0 444.5
Afren . . . . . . . . . . . . . . .93.3 -0.6 171.2 92.0
BG Group . . . . . . . . .1222.5 -11.5 1564.5 1065.5
BP . . . . . . . . . . . . . . . .371.7 8.5 509.0 361.3
Cairn Energy . . . . . . .305.4 2.3 469.7 281.4
EnQuest . . . . . . . . . . . .95.1 -1.5 158.5 93.5
Essar Energy . . . . . .241.0 5.9 589.5 233.5
ExiIIon Energy . . . . . .222.0 -19.2 469.7 173.0
Heritage OiI . . . . . . . .207.2 -4.6 486.0 190.0
JKX OiI & Gas . . . . . .163.0 3.0 335.1 157.4
Premier OiI . . . . . . . . .310.0 -4.7 535.0 308.3
RoyaI Dutch SheII . .1978.0 30.0 2326.5 1803.0
RoyaI Dutch SheII . .1993.0 33.5 2336.0 1749.0
SaIamander Energy .204.8 0.0 317.6 201.4
Soco Internationa . . .325.3 15.1 467.9 279.8
TuIIow OiI . . . . . . . . .1086.0 11.0 1493.0 945.5
Amec . . . . . . . . . . . . .864.0 3.0 1251.0 834.0
Hunting . . . . . . . . . . .641.0 1.5 817.0 592.5
LampreII . . . . . . . . . . .277.9 -3.2 395.2 254.5
Petrofac Ltd. . . . . . .1281.0 2.0 1685.0 1110.0
Wood Group (John) .555.0 0.5 715.8 383.3
Burberry Group . . . .1272.0 13.0 1600.0 871.5
PZ Cussons . . . . . . . .359.5 2.5 409.0 320.5
Supergroup . . . . . . . .990.0 16.5 1820.0 818.5
AstraZeneca . . . . . .2769.5 30.0 3385.0 2543.5
BTG . . . . . . . . . . . . . .259.6 0.6 309.7 200.1
Genus . . . . . . . . . . . . .930.0 10.0 1046.0 711.0
GIaxoSmithKIine . . .1287.5 23.0 1385.0 1127.5
Hikma Pharmaceuti .578.5 10.0 900.0 561.5
Shire PIc . . . . . . . . . .1946.0 33.0 2136.0 1405.0
CapitaI & Countie . . .163.3 -0.1 203.7 126.7
Daejan HoIdings . . .2487.0 -6.0 2954.0 2282.0
F&C CommerciaI Pr .101.3 0.9 108.0 88.0
Grainger . . . . . . . . . . .100.1 -3.1 133.2 86.3
London & Stamford .116.4 1.0 140.0 110.3
SaviIIs . . . . . . . . . . . . .288.2 -8.6 427.1 288.2
St. Modwen Proper . .123.5 -5.6 196.2 122.9
UK CommerciaI Pro . .77.6 0.3 85.5 70.4
Unite Group . . . . . . . .180.2 -6.0 229.8 152.9
Big YeIIow Group . . .273.5 8.3 353.3 234.2
British Land Co . . . . .499.1 0.4 629.5 464.0
CapitaI Shopping . . .322.2 3.8 424.8 312.5
Derwent London . . .1541.0 -9.0 1880.0 1411.0
Great PortIand Es . . .352.6 0.8 445.0 324.7
Hammerson . . . . . . . .386.4 -1.7 490.9 374.2
Hansteen HoIdings . . .79.6 0.6 89.5 64.3
Land Securities G . . .721.0 0.0 885.0 620.5
SEGRO . . . . . . . . . . . .250.9 0.5 331.3 232.4
Shaftesbury . . . . . . . .460.0 -0.9 539.0 426.3
Autonomy Corporat 2518.0 -1.0 2525.0 1271.0
Aveva Group . . . . . .1507.0 -12.0 1799.0 1385.0
Computacenter . . . . .387.0 4.8 490.0 284.1
Fidessa Group . . . . .1600.0 0.0 2109.0 1380.0
Invensys . . . . . . . . . . .242.6 -3.4 364.3 221.7
Kofax . . . . . . . . . . . . .284.6 10.1 535.0 242.0
Logica . . . . . . . . . . . . .81.0 -1.4 147.2 79.3
Micro Focus Inter . . .304.7 1.2 426.2 239.4
Misys . . . . . . . . . . . . .277.1 1.1 420.2 234.7
Sage Group . . . . . . . .247.8 0.1 302.0 231.7
SDL . . . . . . . . . . . . . . .626.0 -4.5 711.5 548.0
TeIecity Group . . . . . .563.0 18.5 572.5 430.0
Aggreko . . . . . . . . . .1833.0 26.0 2034.0 1394.5
Ashtead Group . . . . .133.2 21.2 207.9 92.0
Atkins (WS) . . . . . . . .528.0 0.5 820.0 513.5
Babcock Internati . . .601.0 -10.0 733.0 513.5
Berendsen . . . . . . . . .467.0 -2.6 568.0 382.6
BunzI . . . . . . . . . . . . .785.0 13.0 812.5 676.5
Capita Group . . . . . . .695.5 -3.0 794.5 635.5
CariIIion . . . . . . . . . . .334.8 -2.0 403.2 298.8
De La Rue . . . . . . . . .804.0 6.0 853.5 549.5
EIectrocomponents .201.1 -2.8 294.9 190.0
Experian . . . . . . . . . . .685.5 1.5 833.5 649.0
FiItrona PLC . . . . . . . .337.3 -4.8 385.5 227.5
G4S . . . . . . . . . . . . . . .254.9 -3.1 291.0 237.7
Hays . . . . . . . . . . . . . . .71.9 -0.4 133.6 69.4
Homeserve . . . . . . . .462.6 5.2 532.0 408.0
Howden Joinery Gr . . .97.9 -0.2 127.5 67.9
Intertek Group . . . . .1911.0 -9.0 2148.0 1686.0
MichaeI Page Inte . . .354.5 1.2 567.0 349.6
Mitie Group . . . . . . . .215.6 1.1 242.5 191.2
Premier FarneII . . . . .171.7 -3.7 308.8 168.4
Regus . . . . . . . . . . . . . .69.4 -1.7 119.0 64.0
RentokiI InitiaI . . . . . . .76.1 -1.2 107.1 74.5
RPS Group . . . . . . . . .196.3 -1.8 253.0 175.4
Serco Group . . . . . . .496.8 2.1 633.0 490.1
Shanks Group . . . . . .111.9 -0.1 130.9 99.0
SIG . . . . . . . . . . . . . . .100.5 1.1 153.5 96.0
SThree . . . . . . . . . . . .236.0 -1.1 447.6 232.1
Travis Perkins . . . . . .748.0 -15.5 1127.0 723.5
WoIseIey . . . . . . . . .1509.0 -6.0 2261.0 1353.0
ARM HoIdings . . . . . .536.0 2.5 651.0 338.9
CSR . . . . . . . . . . . . . .212.0 -2.0 447.0 210.0
Imagination Techn . .325.0 -0.5 502.0 296.9
Pace . . . . . . . . . . . . . .103.7 -0.3 231.8 91.0
Spirent Communica .121.6 0.0 160.3 116.0
British American . .2744.5 45.0 2871.0 2282.5
ImperiaI Tobacco . .2105.0 65.0 2231.0 1784.0
Avis Europe . . . . . . . .313.9 0.1 314.0 184.0
Betfair Group . . . . . . .655.0 27.0 1550.0 567.0
Bwin.party Digita . . . .111.0 0.1 297.9 100.6
CarnivaI . . . . . . . . . .1867.0 37.0 3153.0 1742.0
Compass Group . . . .535.0 0.0 612.0 511.5
Domino's Pizza UK . .505.5 8.9 586.0 377.0
easyJet . . . . . . . . . . . .321.7 -2.9 479.0 301.0
Enterprise Inns . . . . . .33.9 -1.0 122.7 33.5
FirstGroup . . . . . . . . .350.9 1.6 412.6 311.3
Go-Ahead Group . . .1416.0 -4.0 1598.0 1085.0
Greene King . . . . . . .434.9 3.4 518.0 410.0
InterContinentaI . . .1005.0 12.0 1435.0 955.0
InternationaI Con . . .155.6 -2.8 305.0 154.1
JD Wetherspoon . . . .410.7 5.5 468.3 389.9
Ladbrokes . . . . . . . . .121.5 -0.4 155.3 120.2
Marston's . . . . . . . . . . .92.0 0.0 117.1 87.1
MiIIennium& Copt . .408.4 2.0 600.5 403.9
MitcheIIs & ButIe . . . .216.4 -1.5 361.0 215.1
NationaI Express . . .232.1 -4.3 270.2 220.7
Rank Group . . . . . . . .126.6 1.6 153.7 109.5
Restaurant Group . . .271.4 -4.7 335.0 254.9
Spirit Pub Compan . . .39.0 1.0 55.0 37.0
Stagecoach Group . .245.3 -1.7 268.5 180.4
Thomas Cook Group .38.8 0.4 204.8 38.2
TUI TraveI . . . . . . . . . .137.2 -3.3 271.9 136.1
Whitbread . . . . . . . .1563.0 106.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .216.9 -2.0 237.3 155.5
Abcam . . . . . . . . . . . .350.0 0.0 460.0 307.0
AIbemarIe & Bond . .363.5 -5.5 400.1 242.3
Amerisur Resource . .16.0 -0.6 29.0 11.5
Andor TechnoIogy . .561.5 1.5 685.0 322.5
ArchipeIago Resou . . .78.5 1.0 79.0 32.3
ASOS . . . . . . . . . . . .1781.0 -48.0 2468.0 960.5
AureIian OiI & Ga . . . .45.5 0.8 92.0 42.5
Avanti Communicat .326.5 -3.5 735.0 288.8
Avocet Mining . . . . . .281.3 9.3 285.5 123.5
BIinkx . . . . . . . . . . . . .115.0 0.3 148.8 70.5
Borders & Souther . . .48.5 -1.8 93.0 44.8
BowLeven . . . . . . . . .128.5 -0.5 398.0 115.3
Brooks MacdonaId 1052.5 7.5 1372.5 907.5
Conygar Investmen . .96.0 -1.0 120.0 95.0
Cove Energy . . . . . . . .65.0 -0.8 112.8 59.5
Daisy Group . . . . . . . .110.5 0.0 127.0 88.0
EMIS Group . . . . . . . .535.0 -13.8 580.0 303.5
Encore OiI . . . . . . . . . .48.3 -1.3 151.5 40.8
Faroe PetroIeum . . . .150.5 -4.5 218.3 133.0
GuIfsands PetroIe . . .153.3 3.8 401.5 142.5
GWPharmaceuticaI .105.0 1.0 130.0 83.0
Hamworthy . . . . . . . .543.5 21.0 705.0 334.3
Hargreaves Servic . .906.5 1.5 1076.0 620.0
HeaIthcare Locums . .84.6 0.0 84.6 84.6
Immunodiagnostic .1052.0 -16.0 1218.0 768.5
ImpeIIamGroup . . . .332.5 5.0 387.5 128.5
James HaIstead . . . . .425.0 -2.5 495.0 315.0
KaIahari MineraIs . . .233.5 -2.0 301.0 142.0
London Mining . . . . .332.5 -1.0 436.5 258.8
Lupus CapitaI . . . . . . .90.0 1.0 150.0 83.0
M. P. Evans Group . .395.0 7.5 500.5 371.0
Majestic Wine . . . . . .405.0 -7.5 510.0 309.0
May Gurney Integr . .242.5 2.5 295.0 177.0
Monitise . . . . . . . . . . . .35.8 -0.3 39.0 18.5
MuIberry Group . . . .1500.0 -3.0 1920.0 363.5
Nanoco Group . . . . . . .63.1 1.1 115.8 57.5
NauticaI PetroIeu . . .243.5 -11.8 547.0 167.5
NichoIs . . . . . . . . . . . .513.5 -1.5 579.0 410.0
Numis Corporation . .106.0 6.0 146.0 91.9
Pan African Resou . . .13.3 0.3 13.8 7.6
Patagonia GoId . . . . . .65.8 -4.0 69.8 19.5
Prezzo . . . . . . . . . . . . .59.0 -0.8 71.5 47.5
Pursuit Dynamics . . .195.0 -4.5 700.0 160.5
Rockhopper ExpIor .208.5 -4.3 510.0 141.0
RWS HoIdings . . . . . .412.0 -20.5 479.8 255.0
Songbird Estates . . .118.0 -0.5 160.3 110.3
VaIiant PetroIeum . . .463.0 -13.5 761.5 455.8
Young & Co's Brew . .652.5 2.5 712.0 525.0
Ashtead Group . . . . .133.2 18.9
Whitbread . . . . . . . .1563.0 7.3
African Barrick Go . .603.5 5.1
Soco InternationaI . .325.3 4.9
Betfair Group . . . . . . .655.0 4.3
FresniIIo . . . . . . . . . .2064.0 3.9
Tesco . . . . . . . . . . . . .374.8 3.7
Kenmare Resources . .41.5 3.7
Kofax . . . . . . . . . . . . .284.6 3.7
TeIecity Group . . . . . .563.0 3.4
ExiIIon Energy . . . . . .222.0 -8.0
Kesa EIectricaIs . . . . .95.0 -6.2
Premier Foods . . . . . . .12.2 -5.0
Cookson Group . . . . .442.6 -4.6
Senior . . . . . . . . . . . . .140.0 -4.6
St. Modwen Propert .123.5 -4.3
St James's PIace . . . .327.4 -4.0
HaIfords Group . . . . .280.5 -4.0
Inchcape . . . . . . . . . .285.1 -3.9
Dixons RetaiI . . . . . . .10.6 -3.7
Risers FaIIers
MAIN CHANGES UK 350
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Tsy 3.250 11 . . . . .100.57 -0.01 103.3 100.6
Tsy 5.250 12 . . . .103.50 -0.02 107.9 103.5
Tsy 9.000 12 . . . .107.30 -0.32 115.4 106.7
Tsy 5.000 12 . . . .102.21 -0.02 106.5 102.2
Tsy 4.500 13 . . . .105.86 -0.05 108.9 105.8
Tsy 2.500 13 . . . .284.47 -0.10 287.7 277.5
Tsy 8.000 13 . . . . .115.04 -0.10 121.0 115.0
Tsy 5.000 14 . . . . .112.40 -0.11 114.1 109.2
Tsy 7.750 15 . . . .102.25 0.00 342.1 102.0
Tsy 4.750 15 . . . . .114.48 -0.10 114.8 108.6
Tsy 8.000 15 . . . .128.68 -0.11 131.3 123.7
Tsy 2.500 16 . . . .338.13 -0.07 340.9 310.2
Tsy 4.000 16 . . . . .112.95 -0.07 113.2 104.9
Tsy 1.250 17 . . . . .113.60 0.03 115.0 106.7
Tsy 8.750 17 . . . .140.92 -0.01 142.1 132.9
Tsy 12.000 17 . . .125.34 0.00 185.9 124.8
Tsy 5.000 18 . . . .120.57 -0.01 120.8 109.7
Tsy 4.500 19 . . . . .117.99 0.13 118.2 105.4
Tsy 3.750 19 . . . . .112.39 0.16 112.5 99.4
Tsy 2.500 20 . . . .350.26 0.15 355.6 312.4
Tsy 4.750 20 . . . . .119.99 0.15 120.2 106.6
Tsy 8.000 21 . . . .150.39 0.11 150.5 133.8
Tsy 1.875 22 . . . . .121.11 0.00 122.8 111.3
Tsy 4.000 22 . . . . .112.97 0.04 113.1 99.0
Tsy 2.500 24 . . . .310.71 0.08 316.1 273.5
Tsy 5.000 25 . . . .123.21 0.06 123.4 107.4
Tsy 1.250 27 . . . . .115.94 0.17 118.3 104.6
Tsy 4.250 27 . . . . .113.20 0.11 113.4 97.9
Tsy 6.000 28 . . . .137.22 0.12 137.5 119.5
Tsy 4.125 30 . . . .293.92 -0.06 299.8 261.2
Tsy 4.750 30 . . . . .119.31 0.05 119.6 103.0
Tsy 4.250 32 . . . . .111.81 -0.05 112.2 96.0
Tsy 4.250 36 . . . . .110.87 -0.17 111.5 95.0
Tsy 4.750 38 . . . . .119.81 -0.20 120.5 102.8
Tsy 4.500 42 . . . . .113.35 0.00 114.3 98.9
% %
Wealth Management | Markets
Business Features| Reviews
T
HE pharaohs built their pyra-
mids, gigantic tombs to propel
themselves into a divine after-
life, colossal and as pointless as
they were pointed. The Romans were
more practical, and concentrated on
useful things like aqueducts and
roads, but which still served to
remind the common people as they
were using them of the greatness and
superior nobility of Marcus Agrippa,
or Appius Claudius, or whoever. The
mediaeval period erected towering
cathedrals to the greater glory of God,
and to save their souls, while the
Victorians churned out factories and
railways which suited their mechani-
cal times. Each age builds to memori-
alise itself and in so doing reflects
what made it tick and what it valued.
Does anything sum up the twentieth
century better than moon rockets and
war cemeteries? Together they repre-
sent the power of technology and the
democratic equality of the grave-
yard, and the fact that our fore-
bears mainly used the one to
create so much of the other.
Our distinctive monu-
ments are not the
glass skyscrapers
which adorn so
many of our
cities, nor
even the
cities themselves, but the markets
which paid for them. Our edifices are
flexible, electronic and dynamic, a
moving wall of money, not rigid, con-
crete and static. They are open to all. It
is possible to share in this monument
not as a conscripted labourer or a
sight-seeing tourist but as an active
participant. Nothing that happened
during the financial crisis of 2007 to
2009 alters this fact or invalidates the
basic merits of this way of living.
The financial crisis does not prove
that ultimately everything depends
upon the state being prepared to bail
out the capitalist system. What it
proves is that if, in response to a devel-
oping financial crisis, the state takes
certain actions rather than others,
then this can effectively commit the
state to a path which
inexorably leads to it
having to bail out
the financial sys-
tem, and bail
it out in a
particu-
l a r
way. We will never know what would
have happened if Northern Rock had
been allowed to crash in September
2007 and Bear Stearns to fail in
March 2008. What we can say
is that by not allowing
them to fail at those
times, but allowing
Lehman Brothers to
fail, and blocking
the TARP at the
first attempt,
a n d
announcing the Brown-Darling
bailout in the form it took, effectively
all governments were forced to follow
through and buy large equity stakes
in the banks after October 2008.
Civilisation requires the produc-
tion of a surplus. If not every-
ones labour is needed to
produce enough food to
keep everyone alive then
it frees some people to
move into other
activities, to pro-
duce other
c ommodi -
ties, to be
spared
t h e
need for daily drudgery; in short, to
enjoy a higher standard of living than
mere subsistence. The more devel-
oped and diversified the society, the
higher the quality of life. People not
working in fields can instead make
pots and pans, or washing machines,
or paint the ceiling of the Sistine
Chapel. If this surplus is expressed in
numbers we call it a profit.
It still remains the case that the
most efficient way of achieving such a
surplus, and hence the enjoyment of
civilisation, is through having a bank-
ing system.
Surpluses can be accumulated as
capital and reinvested to expand pro-
duction. A system whereby some com-
mercial enterprise has an incentive to
sweep up the small surpluses of indi-
viduals to provide significant lump
sums for reinvestment speeds up the
process of development. It allows soci-
ety to take larger steps forward which
require larger capital investments.
With the possible exception of the
Inca (not perhaps the best example of
an alternative model for society) there
has not been a civilisation which did
not have someone performing the
functions of banking.
Excerpted from Monument and Bank:
Capitalism and the Anglo-Saxon Mind
by William Norton, Social Affairs
Unit, 2011
Not the end of the
line for capitalism
The global capital market still changes lives
The Bank of England and (below) Egypts monumental pyramids Pictures: REUTERS
EXTRACT
MONUMENT AND BANK
BY WILLIAM NORTON
SAU, 20
hhhhi
Alex Singleton
Y
OU might be forgiven for
thinking that another book
on the financial crisis was
unnecessary. After all, Gordon
Brown has already written a compre-
hensive tome. You know, the one in
which he forgets about all the mis-
takes he made with regulation, con-
gratulates himself for saving the
world, and bangs on about the need
for more Church of Scotland-style
morality.
OK, so maybe another book is nec-
essary. And when William Nortons
Monument and Bank dropped into
my hands, I thought: at last. This
heavyweight paperback takes up 728
pages. But its more than just a paper-
weight written by a man with an
encyclopaedic knowledge of the Citys
institutions. It is a peculiarly success-
ful hybrid of history book, economic
commentary, and defence of Anglo-
Saxon capitalism.
So what does Norton blame for the
financial crisis? First, he says that the
inflation targeting conducted by the
Bank of England (BoE) from 1993, and
more formally once Brown entered
the Treasury, was wrong. The
Consumer Price Index, and RPIX
before it, failed to take account of
asset prices. And retail prices, which
these statistics did measure, were
misleading. What they really report-
ed was that cheap Chinese workers
were helping us out. This allowed an
asset bubble to grow, but let the BoE
justifiably claim it was meeting its
inflation target.
CAPITAL CRIMES
Second, Norton blames Basel rules for
substituting common sense with tick-
box regulations. The rules required
banks to set aside the same propor-
tion of capital no matter how big the
institution was. Ridiculous, Norton
says, because if a big bank collapses,
it can cause a systemic crisis. If a
small bank goes bust, theres little
problem. So big banks need more
capital than small ones.
Moreover, Norton argues that by
setting minimum capital require-
ments, it anaesthetises part of the
judgement that banks make. They
end up just meeting that require-
ment, in the knowledge that if they
run into trouble, they can tell the
government: Well, we followed all
the rules, so bail us out.
Third, he suggests that the involve-
ment with collateralised debt obliga-
tions (CDOs) by the smaller British
banks was due to government mis-
management of the property market.
The former building societies, such as
Northern Rock, needed to bulk up in
order to compete against the Big Four
high street banks. The former build-
ing societies were too pricey for for-
eign banks to acquire, but foreign
banks could see that they operated in
an attractive market because of the
huge returns in the UK property mar-
ket.
Norton says that CDOs, therefore,
were the easy way for foreign institu-
tions to get into this lucrative market.
He says that the real question we
should be asking is: how on earth did
we let the property market get so dis-
torted that something as basic as
property became such an attractive
investment?
Needless to say, Gordon Brown
wont like Nortons book. For the rest
of us, it weaves thoughtful analysis
into a wonderfully lucid story.
Recommended.
Alex Singleton is the founder of Alex
Singleton Associates, a public relations firm
based in the City of London.
It is a peculiarly successful
hybrid of history book,
economic commentary, and
defence of capitalism
Our monuments are not the skyscrapers which adorn so
many of our cities, but the markets which paid for them
... a moving wall of money, not rigid, concrete and static
L
IKE many metropolis-dwellers,
Londoners tend to think theyre the
centre of the universe and certainly
of England regardless of where
theyre from.
But if youve recently had your toe trod
on at rush hour, been barked at by an
angry commuter or ignored by a surly
waiter oh, and charged 10 for a 2
minute black cab journey you should
head to Liverpool for a weekend of friendly,
affordable fun.
The Beatles home-town was last week
voted the friendliest city in the UK by
Conde Nast Traveller. Combine such wel-
coming locals with an impressively
glossed-up cultural offering Liverpool
was Capital of Culture in 2008 and youve
got a destination thats absolutely worth a
night or two.
Up we zipped from Euston, pulling up to
Lime Street station two hours after we
departed. Sure, we could have been in
Brussels in that time, but then wed have
had to deal with Euros, foreign tongues
and high prices and possibly le snobisme.
Liverpools history is formidable it was
a shipping centre of the world, launching
the first direct steamship to China in 1866,
and shipping out a full half of all European
emigrants to the US by the mid-19th centu-
ry. Liverpoolis incomparably the great-
est city in the British Empire, declared
Lord Birkenhead of Chester in 1924.
But before delving into the citys past at
the impressive (free) Museum of Liverpool
on the spruced up Albert Docks, we had
Friday night to do.
We were staying at the Malmaison on
Princes Dock (www.malmaison.com)
which has been renovated into a sleek box-
like building fusing Beatles heritage (as
practically everywhere here does) with
plum-coloured minimalism and the odd
bit of studied boho-luxe (plump, purple felt
arm chairs and chaise-longs; golden cush-
ions).
Many Scouse women live for weekend
nights where they parade their fashion
finds in an intense peacocking environ-
ment. Its like the terracotta army in
stilettos, joked one local of their march
through the streets to the bars and clubs.
So we got our glad rags on and headed out
for dinner to Marco Pierre Whites be-seen-
at steakhouse in the businessy new Indigo
Hotel. The female clientele was preened
within an inch of its lives with sculptural
hair and architectural dresses, but the
prices reminded me of how differently
Londoners live. Champagne was 8 per
glass, and good luck finding a main over
19. When the dishes came out, they were
mammoth lots of different bits to tease
the tastebuds.
The showstopper came next, after a 3
cab journey, at Alma de Cuba, one of
Liverpools most famous dance bars, a
favourite of the footballing set. Here, at
11pm, rose petals are thrown from a mez-
zanine over the gyrating bodies of some
fabulously and minimally clad dancers.
My friend and I instantly felt dumpy and
shabby. Our glad rags were veritable pyja-
mas next to the locals Versace-style mini-
gowns.
Liverpool has a Tate Modern, which
shows some interesting exhibitions that
dont always come to London. Id had my
Lifestyle
29
Rocking the
Scouse in UKs
friendliest city
Albert Dock, a swishly
renovated riverside
part of the city.
Picture: REX
Fab rainwear
Luisa De Paula, buying director of
my-wardrobe.com, suggests five practical
must-haves for looking sleek this autumn, even
when its bucketing down. By Zoe Strimpel
WHAT TO DO IN LIVERPOOL
Museum of Liverpool: its free, its
child-friendly and, strangely
enough, its a great museum about
Liverpools culture and
history. liverpoolmuseums.org.uk
Tate Modern. Much smaller and
more pleasant to visit than its
London parent, with some good col-
lections. www.tate.org.uk/liverpool
Alma de Cuba: Glimpse those
famously fashion-mad Scouser
women knocking back cocktails and
getting their groove on. alma-de-
cuba.com
Shoppers should head to the
Closet, a dress renting agency
founded by Hollyoaks actresses.
Rent a Herve Leger dress worn by
someone famous for 100 a night.
theclosetliverpool.com
Take a Mersey cruise. Yes, it was
raining and yes, it wasnt quite like
the Nile, but its a fun way to see
the city. merseyferries.co.uk
Go to the Beatles Story museum.
Memorabilia paradise, with real
passion. beatlesstory.com
eye on the Belgian surrealist Magritte
show, and this was the perfect chance to
see it. Unlike Tate Modern in London,
Liverpools version was quiet, small and
cool on Saturday morning. We made our
way round in quiet contemplation, then
popped next door to the Liverpool
Museum, a dense fanfare of history, relicry,
pop culture. It was full.
A quick lunch at arty Leaf on arty Bold
Street (6), a look round Cricket (where
Colleen shops regularly) and Vivienne
Westwood (London prices) and it was time
to head back to London. Next to Liverpool,
Londons weather seemed tropical. Next to
its spirit, London seemed distinctly
grumpy.
History, culture and a
taste for fun: steal a
weekend in Liverpool,
says Zoe Strimpel
3
Warm, dry torso
Invest in a beautifully cut trench coat. It's a
classic wardrobe essential, which you will
wear for years to come. Look to designers
such as Burberry, always a classic, as well as
brands including See by Chloe, D&G and
Barbour. Above: See by Chlo Double-breast-
ed wool coat, 715
4
Take shelter
The umbrella is a staple acces-
sory. A classic black one will
always look chic and be versa-
tile, unlike a printed or novelty
style. Paul Smith and Burberry
have classics in their collec-
tions. (Specialists London
Undercover is City A.M.s fave).
Left: Luxe DPM in black, 120,
www.londonundercover.co.uk
2 1
Dry feet
Boots are a key investment for
Autumn Winter and are ideal
footwear for wet weather days, but
avoid suede. Flat knee high boots and
ankle boots are easy to wear and can
look just as chic as a block or stiletto
heel. Look to brands such as Belstaff,
Philosophy di Alberta
Ferretti and Sam Edelman.
Left: Chocolate
Townmaster 55 Boot ,
Belstaff, 345
5
Dry head
Invest in a hat. Hats are back as a statement
accessory for Autumn Winter and are a great
investment if you choose a style that suits you.
Even with an umbrella, a beautifully made
fedora will protect your hair on a rainy day.
Look to Eugenia Kim and By Malene Birger for
beautifully designed hats. Above: Carly stud-
ded rabbit felt cap, Eugenia Kim, 280
Dry calves
Avoid wide leg trousers on
wet days, as there is
nothing worse than a
soaking wet trouser hem.
This season the 60s com-
pete with the 70s, so look
for a slim fit trouser fin-
ishing at the ankle or a
tunic dress, which is much
more practical. Look to
designers such as Acne and
Joseph. Right: crepe peg-
leg trousers, Acne, 190
T
HERE was a time when the only
diesel Porsche you could buy was a
tractor. But after Ferdinand
Porsches tractor designs of the
1950s came the rather more striking and
long-lasting 911 and Porsche became a
sports car company.
But now the best selling Porsche prod-
uct is the Cayenne SUV, a vehicle that was
widely derided by Porsche aficionados
when it was introduced back in 2002.
Today Porsche is so successful it owns
Volkswagen. This is all quite important
because when people think of Porsche
they think of a sports car company, but
the Panamera Diesel is not a sports car
and it is further proof that Porsche is a
sports car company no more. It is a car
company that also makes sports cars.
Confirmation of this is irrefutable
when a man from Porsche points to a
chart full of numbers and declares that
More efficiency, less sexiness
THE FACTS:
PORSCHE
PANAMERA
DIESEL
PRICE: 62,134
0-62MPH: 6.8 secs
TOP SPEED:150mph
CO2 G/KM: 172g/km
MPG Combined: 45
Porsche has lost
some of its thrill with
the Panamera Diesel
Lifestyle | Motoring
WORDS BY
RYAN BORROFF
We Want to
Buy Your Car
At Dick Lovett Specialist Cars, we are always buying.
We are looking for quality, low-mileage models of the
following brands: Ferrari, Maserati, Audi R8, Nissan GT-R,
Bentley, Lamborghini, Aston Martin, M Power BMW models,
Ferrari Classics and anything a bit different.
If you are thinking of selling your car and would like to take
advantage of our open cheque book, please call Matthew
Beard on 01793 615000 or 07860 911959. Alternatively,
please e-mail [email protected]
Dick Lovett Specialist Cars
Ashworth Road, Bridgemead, Swindon, Wiltshire, SN5 7XR
www.dicklovett.co.uk
the number one target of the Panamera
Diesel is fuel economy and not perform-
ance. I cannot believe my ears. And if a
diesel-engined Cayenne SUV is acceptable
then a frugal version of Porsches four-
seater GT Panamera must be as well? Fuel
economy is now king even for Panamera
owners, of which there are many, because
Porsches imperfectly-styled grand tourer
has become something of a success.
This diesel version is important too. It
will almost certainly be the biggest seller
in the UK despite the fact that driving it
feels quite a bit too slow. The performance
figures are just adequate in relation to
speed 0-62mph takes 6.8 seconds and top
speed is 150mph. This would be acceptable
if the car carried the badge of the Audi
brand that donated this Panameras
250bhp, 3.0-litre V6 turbo diesel engine
but on a Porsche it just doesnt seem so.
So its no wonder then that the man
from Porsche wants to focus on economy
figures. Here the Panamera diesel is
impressive. A combined figure of 45mpg is
claimed, which theoretically means its 80-
litre tank could carry the car for as much
as 745 miles. A 100-litre tank option is
muted too which will ensure even grander
grand tours.
Inside, the car is far more successful
than its exterior styling belies. It is a won-
derful place to be and overall, driving the
Panamera is a fine experience. Its com-
fortable and refined and up to speed on
the German autobahns yes, the
Panamera diesel is undoubtedly an
extremely efficient way of knocking off
the miles. But back on the Austrian moun-
tain roads I find myself inching forward in
my sumptuous, beautifully-made seat des-
perately egging it on.
The man from Porsche of course would
declare that this is because driving excite-
ment was not the primary goal of this car.
And in that context the car is a success.
Porsche has made a very economical conti-
nent-tourer of a four-seater GT. It is, as
always with Porsche products, very well
executed. But it isnt a sports car. Is the
Porsche brand any poorer for it?
VWS ONE-SEATER VISION
The future of commuting according
to VW is travelling in cars that only
seat one, as most daily commuters
travel alone. Volkswagens unusual
looking NILS concept is a single-
seat EV which has two glass wing
doors and free-standing wheels.
Its small at just over 3m long
and 1.2 metres tall and has a 40
mile range and a top speed of
80mph.
LAND ROVER DC100
This is Land Rovers DC100 concept
which could yet become the next
Defender. Land Rover says this dra-
matic reworking of the original icon-
ic design has been created to test
customer reaction to a possible new
look for the next generation SUV,
which is planned for production in
2015. If Land Rover fans are as
resistant to change as they usually
are then reception will be mixed.
FIAT PANDA PREVIEW
Fiat has released images of its new
Panda ahead of its launch at the
Frankfurt motor show this month.
This latest version of Fiats extreme-
ly successful city car has a softer,
rounder shape and is only slightly
bigger than its predecessor. The car
will come with a range of frugal
engine options including two ver-
sions of its award-winning two-cylin-
der TwinAir engine.
CAR TALK BY RYAN BORROFF
THE VERDICT
DESIGN HHHii
PERFORMANCE HHHii
PRACTICALITY HHHii
VALUE FOR MONEY HHiii
The Diesel is a beauti-
fully executed
product, but not very
Porsche.
T
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VILLAGE SOS
BBC1, 8PM
Sarah Beeny visits Tideswell in the
Peak District, where residents are
battling to halt the villages decline by
opening a cookery school.
NATURAL WORLD: ANIMAL
HOUSE BBC2, 8PM
David Attenborough investigates
animals that build structures, including
bower birds, which select mates based
on their home decorations.
LOCATION, LOCATION, LOCATION
CHANNEL4, 8PM
Kirstie Allsopp and Phil Spencer head
to Devon, where they help local
newlyweds Sam and Jamie who are
looking to start afresh in a new home.
BBC1
SKY SPORTS 1
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6.30pmRoad to Wembley: How
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Championship
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7pmCriminal Minds 8pmFour
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1amCSI: Crime Scene
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Jerry Springer
BBC THREE
7pmThe Worlds Strictest
Parents 8pmJunior Doctors:
Your Life in Their Hands 8.55pm
Pops Greatest Dance Crazes 9pm
FILMFace/Off 1997. 11.10pm
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Hustle: New Recruits 3.05am
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Hustle: New Recruits
E4
7pmHollyoaks 7.35pmHow I
Met Your Mother 8pmFILM
Fantastic Four: Rise of the Silver
Surfer. 2007. 10pmHollyoaks
Later 11pmFranklin & Bash 12am
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5.10am-6amBeauty School
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News
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Live: BBC News: Regional News
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Are?
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Apollo: National Lottery Update
11.30pmFILMGreen Card 1990;
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Kitchen Secrets 3.15amCountry
Tracks 4.10am-6amBBC News
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thinks it is a bike and a beauty
treatment administered by fish.
8pmCHOICE Natural World:
Animal House
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You: With guest host Robert
Webb.
10.30pmNewsnight: Weather
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1.15amBBC News 4.10am-6am
Close
6pmLondon Tonight
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10pmITV News at Ten
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10.35pmFILMMystery Men:
Superhero comedy, starring
Ben Stiller. 1999.
12.45amThe Zone; ITV News
Headlines
2.50amITV Nightscreen
4.05am-5.30amFILMYu-Gi-Oh!
Animated adventure, with the voice
of Dan Green. 2004.
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11.45pmChris Moyles Quiz
Night: The Radio 1 DJ hosts the
grand final. Last in the series.
12.45amThe Killing 2.35am
4Music: 4Play: Ed Sheeran. Profile
of the singer-songwriter. 2.50am
4Music: The Album Chart Show:
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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 Inexible (5)
4 Fires from a job (5)
7 Pixie (3)
8 Russian rulers (5)
10 ___ Island, New
York Bay area (5)
11 Possess (3)
12 Remoulded car tyre (7)
13 Kimono sash (3)
15 To the ___ degree
(to the utmost) (3)
17 Rubbery (7)
20 Paddle used to
move a boat (3)
21 Eddy (5)
22 Crowd actor (5)
23 Listening organ (3)
24 Drugged (5)
25 Mix up or confuse (5)
DOWN
1 Helicopter
propeller (5)
2 Allowance (5)
3 Unkempt,
disordered (11)
4 Roadside device
triggered by fast-
moving vehicles (5,6)
5 Large stringed
instrument (5)
6 Japanese rice
dish (5)
9 Sugary (5)
14 Wild rose (5)
15 Pried (5)
16 Bristles (5)
18 Carried with
difculty (5)
19 Fad (5)
I
U
Y
C
S R
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O
T

4

4
4
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M O G U L M O N T H
A L I R R
S U S E M I N A R
S L E E T E D
E I N S T A N C E
S A N E O T Y R O
A G R A R I A N L
C V B L I N D
S H E A V E S C M
E T E A A
K N E E S N Y L O N
2 1 4 2
4 9 8 6 1 2 3 5
3 8 1 3 2 1 6
7 8 5 1 6 2 4 9
9 4 9 5 7 8
1 7 3 5
1 2 4 3 8 4
4 3 6 5 9 7 1 2
8 5 4 8 9 9 5
2 4 7 1 6 2 3 1
6 9 3 7
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PHENOMENA
Lifestyle | TV&Games
DOUBLE amputee runner Oscar
Pistorius cut short an interview yes-
terday after taking offence at being
asked whether South African track
chiefs might view him as inconve-
nient and an embarrassment.
Pistorius, known as Blade Runner
because of his distinctive carbon
fibre legs, became the first
Paralympian to win a medal at an
able-bodied world championships
when he helped his country claim sil-
ver in the 4x400m relay in Daegu at
the weekend.
However, the 24-year-old, who has
been cleared to compete by the Court
of Arbitration for Sport and intends
to run at London 2012, was dropped
from the line-up for the final, leading
to speculation that South Africa
might be trying to pre-empt any pos-
sible controversy.
Asked yesterday by BBC reporter
Rob Bonnet whether, as well as an
inspiration, he might be considered
an inconvenient embarrassment to
the South African authorities and
[world governing body] the IAAF
because, effectively, youre taking
them into uncharted ethical waters
here, Pistorius snapped.
He replied: I think thats an insult
to me and I think this interview is
over. When Bonnet protested, he
reiterated: That is an insult. Thank
you very much. Pistorius said yester-
day he plans to compete not only at
the London 2012 Olympics but also
the Paralympics which follow imme-
diately afterwards.
British Paralympic great Baroness
Tanni Grey-Thompson has called for
Pistorius to choose one or the other.
But he said: I want to compete in
both. I will be running the 100m,
200m and 400m in the Paralympics.
Ive got to run one more qualification
time for the Olympics between
January and June next year.
Results
BRITISH No1 Andy Murray will play
his delayed US Open fourth round
match today after torrential rain
forced play to be abandoned yester-
day without a single ball being hit in
anger.
The extra day of rest may come as a
relief to the fourth seed, who was
taken to five sets in his second round
clash against Robin Haase, but he
now faces four matches in five days if
he is to win a first grand slam.
The matches involving defending
champion Rafael Nadal and Gilles
Muller and three-time losing US
Open semi-finalist Andy Roddick and
David Ferrer have also been resched-
uled to take place today.
Meanwhile, in the other half of the
draw Roger Federer is looking for-
ward to renewing hostilities with his
Wimbledon nemesis Jo-Wilfried
Tsonga after securing a last eight
spot in double-quick time.
The Swiss made short work of Juan
Monaco at Flushing Meadows on
Monday night, winning 6-1, 6-2, 6-0 to
ensure a record 30th consecutive
grand slam quarter-final appearance.
Federer will expect a tougher test
today against Tsonga, the man who
came from two sets down to beat the
former world No1 in an epic
Wimbledon quarter-final earlier this
year.
It was the first time in his profes-
sional career that the 30-year-old had
surrendered a two-set advantage and
the five-time US Open champion is
anticipating an equally eventful
clash against the powerful
Frenchman.
He said: Jos a tough player. Ive
had some really good matches
against him. Theyre always a bit
crazy, a bit up and down.
Im looking forward to it. Hes an
exciting player to watch and to play. I
hope I can play as well as I did against
Juan, then Ill give myself a chance.
While Federer sailed through his
fourth round clash, Tsonga was given
an altogether tougher time by Mardy
Fish, coming from two sets to one
down to beat the home favourite.
Tsonga, who also beat Federer in
Montreal last month, added: Its
good to have some wins against him
because now Roger knows Im able to
beat him. But every day its another
day.
Even if I won two times, I know
the third time will be difficult
maybe more than the others
because of that, because Roger knows
I can beat him and he will do every-
thing to win this time.
BY JAMES GOLDMAN
TENNIS
Pistorius interview bust-up over relay row

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email [email protected]
Sport 32 CITYA.M. 7 SEPTEMBER 2011
Play was abandoned at Flushing Meadows yesterday Picture: ACTION IMAGES
BY FRANK DALLERES
ATHLETICS
ENGLAND will face Argentinas

strongest possible side in their
crunch World Cup opener in
Dunedin on Saturday, according to
Pumas coach Santiago Phelan.
The shock semi-finalists in France
four years ago are rated as underdogs,
despite being ranked the top seeds in
Pool B, but their line-up will be
enhanced by the presence of outside
centre Gonzalo Tiesi.
The Stade Francais star replaces
Marcelo Bosch in the only change to
the side that was beaten 28-13 in
Cardiff last month by Wales in what
was Argentinas only Test of the year.
We think that this game and at
this moment it is the best team we
have, said Phelan (below).
We know we have 30 players and
all are in very good condition for play-
ing, but this starting XV is the best
players we can put on the field.
Prop Juan Figallo retains his
place in the front row with
the experienced Martin
Scelzo forced to make do
with a spot on the replace-
ments bench.
We know he is a young
player but he is developing
very well, Phelan said of the
23-year-old Figallo. He
had a very good year
in Montpellier and
we think he is
the best option
for the right prop and also he can play
left.
Fly-half Felipe Contepomi retains
the captaincy in what will be his
fourth World Cup, a feat that will be
matched by the 38-year-old hooker
Mario Ledesma.
Weve only played one Test
match in the last 11 months,
so naturally were looking
forward to growing up as a
team throughout the tour-
nament, said Contepomi.
Our expectation is to
come and play our best and
if we can be competitive on
Saturday, that will be
great and start the
tournament as
best we can.
Pumas primed for England showdown
BY JAMES GOLDMAN
RUGBY UNION
SPORT | IN BRIEF
Davies fearful of Steyns boot
RUGBY UNION: Wales second-row
Bradley Davies believes maintaining dis-
cipline will be the key to causing a World
Cup shock against South Africa on
Sunday. Warren Gatlands side have let
the world champions off the hook in
their previous two encounters, conceding
needless penalties. With Morne Steyn,
one of the most reliable kickers in the
world game, part of South Africas
armoury Davies knows his side cant
afford to give the fly-half any chances in
their tournament opener. He said: You
dont want to be giving him any easy
points. He is one of the world-class kick-
ers in the game at this moment in time.
Clubs slam nonsense matches
FOOTBALL: Europes top clubs want to
see the number of international fixtures
halved to just six a year, and friendlies in
June and August eradicated. The 200-
strong European Club Association met in
Geneva yesterday and chairman Karl-
Heinze Rummenigge said: It has to be
stopped that we release players for non-
sense dates.
Vermaelen joins Arsenal injured
FOOTBALL: Arsenal defender Thomas
Vermaelen has been ruled out for a
month after undergoing ankle surgery.
It is a second blow this week for the
Gunners, after midfielder Jack Wilshere
was told he may not play again until
December, also due to an ankle problem.
Cech in line for Chelsea return
FOOTBALL: Chelsea goalkeeper Peter
Cech is in contention for Saturdays trip
to Sunderland after returning to full
training after a knee injury ahead of
schedule. Defender David Luiz could also
make his first appearance of the season,
while deadline day signing Raul Meireles
may make his debut.
Moody on course
for speedy return
ENGLAND captain Lewis Moody looks
likely to be in contention to make his
comeback against Georgia next week
after he delivered an upbeat bulletin
on the damaged knee which will keep
him out of Saturdays World Cup
opener against Argentina. The flanker,
who has been restricted to just over
an hour of international rugby this
year because of injuries, said on
Twitter: Thanks for the kind mes-
sages, knee nearly ready.
Rain forces
Murray to
wait his turn
Cook struck an unbeaten 80 from 63 balls Picture: ACTION IMAGES
ENGLAND captain Alastair Cook
steered his side to a crushing seven-
wicket win over India in the second
match of the one-day series and in the
process went a long way to silencing
the doubters who claim he scores too
slowly to merit a place in the limited
overs set-up.
Cooks measured style, which has
reaped handsome rewards in the five-
day arena, is not best suited to the
one-day format and his appointment
as one-day skipper was hardly met
with universal approval.
But the Essex left-hander demon-
strated a hitherto unseen array of
attacking shots at a rain-sodden Rose
Bowl yesterday to suggest he has been
unfairly pigeonholed as nothing
more than a Test specialist.
In a match that was reduced to 23
overs-a-side due to bad weather,
England sacrificed Jonathan Trott,
another patient compiler who, like
Cook, is not a member of Englands
Twenty20 side, and also had to make
do without the injured Eoin Morgan.
England won the toss and opted to
bowl first but it looked a questionable
decision by the time the tourists had
raced to 109-2 in the 14th over thanks
largely to a partnership of 79 between
Ajinkya Rahane and Rahul Dravid.
Opener Parthiv Patel had made a
lively 28 before he became James
Andersons 200th ODI wicket, but it
was Rahane who caught the eye with
a sparkling 54.
Suresh Raina made a brutal 40
from the 30 balls to drag his side to
what looked like a more than compet-
itive total of 187-8.
But Englands openers got off to a
flyer and by the time Craig Kieswetter
departed for 46 they were well ahead
of the asking rate.
Cook, whose innings of 80 from 63
balls contained one meaty six and
one inventive paddle sweep for four,
was deservedly there at the end as his
side got home with five deliveries to
spare to take a 1-0 series lead.
BY JAMES GOLDMAN
CRICKET
WORLD No2 Lee Westwood will be

the biggest threat in a depleted Great
Britain and Ireland side bidding to
retain the Seve Trophy in Paris next
week.
The holders have been hit hard by a
spate of withdrawals, which will
deprive them of four of the worlds
top 20 in Luke Donald, Rory McIlroy,
Graeme McDowell and Paul Casey, as
well as Justin Rose and Martin Laird.
However, captain Paul McGinley
can still call on Ian Poulter, Open
champion Darren Clarke and 2009
veterans Simon Dyson, Robert Rock
and Ross Fisher for the biennial con-
test.
Continental Europe, led by
Dutchman Jean van de Velde, boast
the most in-form man on the
European Tour, Denmarks Thomas
Bjorn, and Italian wonderkid Matteo
Manassero, who becomes the compe-
titions youngest ever player at 18
years, 152 days.
Also looking to end Great Britain
and Irelands run of five successive
victories will be Spains Alvaro
Quiros, Italian Ryder Cup star
Francesco Molinari and Bjorns coun-
tryman Anders Hansen.
The Seve Trophy takes place at St-
Nom-La-Breteche from 15 September.
BY FRANK DALLERES
GOLF
Sport
Westwood to spearhead GBs Seve tilt
Cook cuts loose
to show hes man
for all seasons
GB & Ireland
Lee Westwood
Ian Poulter
Darren Clarke
Simon Dyson
Ross Fisher
Mark Foster
Robert Rock
Jamie Donaldson
David Horsey
Scott Jamieson
Cap: P McGinley
Cont. Europe
Francesco Molinari
Anders Hansen
Thomas Bjorn
Matteo Manassero
Alvaro Quiros
Alex Noren
Pablo Larrazabal
MA Jimenez
Nicolas Colsaerts
Peter Hanson
Cap: J v d Velde
THE TEAMS | SEVE TROPHY
Shoulder injury ends
Morgans summer
ENGLAND batsman Eoin Morgan has
been ruled out of the remainder of the
one-day series against India with a
recurrence of an injury to his right
shoulder. Morgan first suffered the
injury during Englands Ashes tour of
Australia earlier this year with the
injury flaring up after the recent
Twenty20 fixture against India at Old
Trafford. With three games left,
Englands selectors have opted not to
call up a replacement.
Sport
34
I
F Fabio Capello needs a clue as to
how to get his lacklustre team fir-
ing on all cylinders again he need
look no further than the recipient
of last nights man of the match
award.
Aaron Ramsey, the 20-year-old cap-
tain of Wales, took that honour and
at once symbolised everything that
was in such short supply in the
England side: youth, energy, vigour
and fearlessness.
Just a few days ago Capello took his
squad to Bulgaria and picked an
adventurous, young line-up featuring
two defensive midfielders and four
interchanging forwards and
deservedly ran out comfortable 3-0
winners.
Here last night, however, he sent
out a disappointingly conservative
side featuring three central midfield-
ers who are all too similar. England
ended up with a decent result but
were static and largely nullified by
Wales and got away with it.
James Milner did well enough and
worked hard but is just not offensive
enough as a replacement for Theo
Walcott. It meant there was little
interaction between the forwards and
Wayne Rooney was left an isolated
figure for much of the game.
ONE-PACED
Frank Lampard seems to have lost the
bursts of energy so crucial to his
game and is now one-paced, with too
many sideways passes, and does not
affect games terribly much.
Lampard has been a great servant
to his country and certainly still has a
role to play as a squad player but the
sad fact is that the years catch up
with us all eventually and England
need to face the issue of their ageing
stars head-on.
Capello doesnt have many games
left before Euro 2012 and must use
them to bring through youngsters.
Chris Smalling has been a success;
now lets see the likes of Tom
Cleverley get their chance.
No longer can we use the excuse
that youngsters cannot handle the
pressure of international football.
They are all playing for top clubs,
often in the Champions League. They
are ready.
What we need is to give new blood
their chance and stick with them
even if they have the odd bad game.
The older heads can always be
brought on as substitutes but only if
the youngsters dont work out.
Capello must throw off the shackles
MANAGER Fabio Capello admitted
England got lucky after an Ashley
Young goal salvaged a first home win
for more than a year and took them
to the brink of qualifying for Euro
2012 from a distinctly lacklustre per-
formance.
In what is likely to be the Italians
last competitive match at Wembley, he
reverted to a more conservative selec-
tion, with three central midfielders,
than that which swept Bulgaria aside
on Friday.
But he blamed the inhibiting factor
of a home crowd for a display that
scarcely merited three points and
would have gleaned just one, had
Wales substitute Robert Earnshaw not
missed an open goal in the closing
stages.
Yes, we were lucky, said Capello.
Here, we lose the confidence. Some
players usually can dribble and go
straight at the goal. I always want
three players in front of goal for cross-
es but there was only ever one.
We didnt play well in the first 20
minutes and in the last 15 minutes we
suffered a lot. We didnt play good
passes and never pressed the ball.
When we play at Wembley, we want to
play with more courage and more
pressure on the opponent. When we
played the qualification for the World
Cup, we never had problems at home.
Today, the other team played without
pressure for the result. You can do
things with a free mind.
England now need just a point from
their final Group G fixture, away to
Montenegro next month, to ensure
their place at next summers finals in
Poland and Ukraine, but will not be
feared on this showing.
Capello made two changes from the
team that swaggered past Bulgaria 3-0
on Friday, with James Milner replacing
injury doubt Theo Walcott and Frank
Lampard preferred to Scott Parker, one
booking away from a ban.
But with a slightly altered shape,
Milner playing deeper than Young had
in Sofia, they looked a pale shadow,
rarely outfoxing an eager Wales team
also buoyed by a weekend win.
A John Terry header and Stewart
Downings miscued scissor kick were
the only times England threatened to
rouse another impressive Wembley
crowd in the first half-hour.
But out of nowhere Downing pro-
duced a moment of class, feigning to
cut in from the right but instead dart-
ing to the bye-line and pulling back for
Young to convert smartly first time at
the near post.
It looked set to herald a more inci-
sive display, but straight after the
break they were subdued and compla-
cent again. Lampard blazed a tricky 18-
yard effort over but Wales looked
increasingly dangerous and Capellos
men ever more anxious.
Earnshaw had by far the best chance
of the game, an empty net from Darcy
Blakes ball across the six-yard box, but
somehow contrived to shin it over.
Young rescues flat
England need a point from their final
group fixture next month in Montenegro
to make sure of top spot and automatic
qualification. Defeat would risk being
knocked into second place, but only as
long as Montenegro won their final
game, in Switzerland, four days later.
Switzerland could still pinch second place
but Wales and Bulgaria are both out.
WHAT IT MEANS | EURO 2012
FOOTBALL COMMENT
TREVOR STEVEN
Joe Hart
Wasnt required to make a sin-
gle save of note and was nothing but
a glorified ball boy throughout.
6
Substitutes
Scott Parker: Unlucky to be dropped on the evi-
dence of his performance in Sofia last week. Sent
on to do a steadying job in place of Lampard but
was hardly noticed. Adam Johnson: Only given
11 minutes to make an impact and saw little of
the ball. This time last year he looked like an
England regular for years to come, but lack of
first-team action at Manchester City means hes
been overtaken by Downing and Young.
HOW THEY RATED
ENGLAND
Chris Smalling
Performed well enough against
limited opposition but doesnt look a
long-term option at right-back.
6
John Terry
Accomplished stuff from the
skipper. Phil Jones will be waiting
in the wings for some time yet.
7
Gary Cahill
Contributed to two clean
sheets in the space of four days but
sterner tests lie ahead.
6
Ashley Cole
Coped masterfully with the
threat of Bale. Remains just about
the first name on the team sheet.
7
Gareth Barry
In a midfield zone saturated
with mediocrity, the City water car-
rier failed to stamp his authority.
5
Frank Lampard
Neat and tidy but nothing
more. Skied the one presentable
opportunity that came his way.
5
James Milner
Worth his place in the squad
by virtue of his versatility but not
suited to a central role at this level.
6
Ashley Young
Hopefully hes not peaking too
soon, but already looks certain of a
place in Englands Euro 2012 squad.
8
Stewart Downing
Showed hes more than a one
trick pony with the way he created
Youngs goal. Impressive again.
7
Wayne Rooney
The smile in Sofia was
replaced by a scowl at Wembley.
Frustrated by lack of support.
5
Fabio Capello
Got the job done, more by
luck than judgement. Over-cautious
against the worlds 117th best team.
6
England 7 5 2 0 15 3 17
Montenegro 6 3 2 1 5 3 11
Switzerland 6 2 2 2 10 8 8
Bulgaria 7 1 2 4 3 12 5
Wales 6 1 0 5 3 10 3
GROUP G
TEAM PLD W D L F A PTS
BY FRANK DALLERES
FOOTBALL
1
0
ENGLAND
WALES
Euro 2012 qualification now just a point away but little
cause for enthusiasm from a lukewarm performance
SCOTLAND gave their Euro 2012 qual-
ification hopes a shot in the arm with
a crucial 1-0 home victory over
Lithuania, thanks to Steven
Naismiths second-half goal.
Craig Leveins men, who saw
Darren Fletcher miss a penalty, hung
on in a nervous finale for only their
second victory of the campaign.
Naismith (right) scored just after
the break when he stretched to meet
a whipped cross from the outstand-
ing Barry Bannan with a half-volley
that went in via the post.
It means Scotland lie two points
behind the Czech Republic in a two-
way fight for second place, with two
fixtures remaining. Group I leaders
Spain confirmed their qualification
with a 6-0 win over Liechtenstein.
Elsewhere, the Republic of Ireland
secured a vital draw in Russia with a
heroic rearguard effort that left
defender Richard Dunne covered in
blood and wearing a shirt with his
number scrawled on the back in
marker pen.
Dunne made several crucial
blocks and goalkeeper Shay
Given a string of superb
saves to earn a seventh
consecutive clean sheet
and stay just two points
behind the Group B leaders.
A facial
wound
f o r c e d
t h e
Aston Villa
centre-back
to change his
shirt, but with only blanks in
their kit bag Irish staff had to add a
makeshift No5 to Dunnes new top
with a pen. Qualification rivals
Slovakia, meanwhile, suffered a huge
shock 4-0 home defeat to Armenia,
keeping them one point behind
Giovanni Trapattonis men, and with
Russia still to play. Ireland face easier
final matches against Andorra,
away, and Armenia, at home, next
month.
Northern Irelands hopes of
reaching the finals died as they lost
4-1 in Estonia. Group
C leaders Italy
conf i r med
top spot by
b e a t i n g
Slovenia 1-0.
World No1 ranked side
Holland also booked
their Euro 2012 spot
with a 2-0 win in
Finland.
Scotland and Republic of Ireland keep
hopes alive but Northern Ireland crash
WALES manager Gary Speed refused
to blame striker Robert Earnshaw for
the astonishing miss which meant
his side left Wembley without the
point he felt their performance mer-
ited.
Earnshaw, the veteran Cardiff
striker, missed an open goal from five
yards with just 13 minutes remain-
ing of a game which had seen Wales
more than match their illustrious
opponents, particularly in the second
half.
But Speed, whose last two matches
in charge have hinted at a brighter
future for Welsh football, felt noth-
ing but sympathy for Earnshaw.
Hes been great for Wales and will
be for years to come. Hes a fantastic
lad. Im sorry it had to happen, said
Speed.
The pressure we were putting on
England meant we were going to get
a chance and if you could have it fall
to anyone it would have been Earnie.
It was unfortunate.
If we had 25 of him then wed go a
long way. If you want to put your
money on anyone in that position
then it would be Earnie, but in the
bigger picture, if its this time next
year, maybe we would be ruing that
miss a little bit more.
I think just the way the guys
played second-half far outweighs the
disappointment of that miss.
Despite a result which means
Wales hopes of qualifying for Euro
2012 are over, Speed was justifiably
proud of his sides display.
He said: Im really proud of the
players in there because they stuck to
their game plan, they knew what was
going to happen and theyre unfortu-
nate not to get the result.
But the performance and the way
the players played, Im really, really
proud.
Proud Speed takes the heat off
Earnshaw after strikers howler
FOOTBALL
BY FRANK DALLERES
FOOTBALL
England
35
CAPTAIN COOK SHOWS HES
A MAN FOR ALL SEASONS
SKIPPER LEADS FROM THE FRONT AS
ENGLAND HAMMER INDIA AGAIN: P33
KEY MOMENTS | THREE LIONS FLOUNDER AGAINST WALES
73 mins: Theo Walcott, John Terry and
Fabio Capello all launched vehement
defences of Frank Lampard this week, but
nothing in his performance last night sug-
gested his role in Poland and Ukraine next
summer will extend to much beyond a
couple of cameo appearances from the
bench. He skied his only chance of note
just past the hour mark, looked slow and
cumbersome in comparison to his Welsh
opponent Aaron Ramsey and was taken
off with 17 minutes remaining.
35 mins: The Wembley boo boys were no
doubt clearing their throats as half-time
approached and with their side failing to
justify their hugely flattering Fifa world
ranking. But the players were spared a
grilling, by the fans at least, thanks to
Ashley Youngs neat near post finish after
his former Villa team-mate Stewart
Downing showed his right foot isnt just
for standing on. The now Liverpool winger
escaped the attentions of Joe Ledley with
a clever shimmy and centred for the
unmarked Young, who steered his shot
inside the near posts and under the body
of the sprawling Wayne Hennessey.
77 mins: Hed only been on the field for
nine minutes but thats just about the only
excuse that can be offered in defence of
Robert Earnshaw, whose miss from six-
yards is likely to haunt the Wales striker
for years to come. Aaron Ramseys free-
kick was touched across goal by Darcy
Blake and looked to have presented the
seasoned poacher with an unmissable
opportunity. With the goal at his mercy
Earnshaw opted for power rather than
placement and succeeded only in locating
the top tier of the stand behind Joe Harts
goal.
Pictures: ACTION IMAGES / EMPICS
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