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HSBC plans
a jobs cull
in Europe
EUROPE is set to lose thousands of jobs
to higher-growth markets in Asia as
HSBC slashes its headcount by 30,000
in the next two years.
That includes 700 jobs cut in the UK
alone in the first half of this year, with
more to come as the bank refocuses its
business eastwards. It has also cut 700
jobs in France, 1,400 in the US and 300
in the Middle East.
By contrast, it has hired 1,500 in Asia-
Pacific and 800 in Brazil, although
Latin America overall has seen 1,700
jobs cut.
The bank says that the numbers are
merely gross job cuts, with many likely
to go through natural attrition. But it
has no estimate for the net job losses
expected in the UK or overall.
It does, however, have concrete plans
to hire 3,000-4,000 people per year in
emerging markets, despite rising wage
inflation.
Chief executive Stuart Gulliver put
the UK job losses down to an increasing
burden of regulation driving up costs.
Brian Robertson, head of HSBCs
European businesses, told City A.M. he
expects headcount in the region to be
broadly flat as it grows elsewhere.
But that could change, the bank
warned, due to regulatory changes rec-
ommended by Independent
Commission on Banking (ICB).
Gulliver said: Well really have to
wait to see what the ICB will say before
we know what our headcount will be.
Chairman Douglas Flint added that
the ICB will also inform its decision
on whether to stay headquartered in
the UK or move elsewhere. MORE: P7
BY JULIET SAMUEL
BANKING

US POLITICIANS moved one step closer

last night to approving an eleventh-
hour deal to raise the countrys debt
ceiling, and hope to avoid the prospect
of a default that would throw global
markets into chaos.
Members of the Republican-con-
trolled House of Representatives voted
269-161 in favour of the proposed plan,
which will lift the debt ceiling by $2.4
trillion (1.48 trillion) before the end of
the year through a programme of
spending cuts that politicians have
spent recent weeks furiously debating.
Though the House vote was seen as
the biggest hurdle to the bills
progress, the Democrat-led Senate
must grant final approval before
tonights midnight deadline. After
that the US coffers would officially
run dry, risking the first full-scale
default in the countrys history.
Representatives from both parties
had spent the final hours before the
vote rallying support for the bill,
despite each side admitting that the
compromise proposal was far from
perfect. Democrat minority leader
Nancy Pelosi was forced to make up for
a number of defections among
Republicans led by the Tea Party
faithfuls by pledging her support for
the deal, and encouraging other mem-
bers of her party to do the same.
The approved plan spreads $2.4 tril-
US PULLS BACK
FROM THE BRINK
BY ELIZABETH FOURNIER
POLITICS

www.cityam.com Issue 1,437 Tuesday 2 August 2011 FREE

THE 50P
TAX DEBATE
SHOULD THE
COALITION SCRAP
THE TOP RATE? P8
ENGLAND TAKE GIANT STEP
TOWARDS WORLD NO1 SPOT
BRESNAN CRUSHES INDIA P22 & 23
BUSINESS WITH PERSONALITY
lion of spending cuts out over the next
decade, with almost $1 trillion avail-
able immediately and a further $1.5
trillion in cuts to be agreed later in the
year by a congressional committee.
No immediate tax increases will be
introduced to contribute to the pot,
after the Republicans, led by House
speaker John Boehner, won a key con-
cession during negotiations.
The vote saw the return of
Congresswoman Gabrielle Giffords to
the House for the first time since she
was shot in the head in January this
year. Democrat Giffords only left rehab
in mid-June, but returned to Capitol
Hill to vote in favour of the deal, earn-
ing a standing ovation from her col-
leagues.
Commentators spilled doubt yester-
day on hopes that a last-minute deal
would prevent the US from losing its
AAA credit rating, after rating agency
Standard & Poors said that a $4 tril-
lion programme of cuts would be
needed to sidestep the downgrade.
US markets, which had dipped from
early gains yesterday after weak manu-
facturing data was released, pared
back losses during the afternoon as
optimism grew that the deal would be
passed. But Japans Nikkei index fell
1.2 per cent in early trading this morn-
ing, as fears around the US debt crisis
continued to rattle world markets.
DAVID HELLIER: P2 MORE: P4-5
Certified Distribution
30/05/11 till 03/07/11 is 102,636
Gabrielle Giffords (above)
returned to the House for the key
vote last night, which approved
the deal negotiated by President
Obama and the US Congress
Picture: GETTY/REUTERS
GEORGE Osbornes hopes of a manu-
facturing-led recovery were dealt a
blow yesterday, after a survey suggest-
ed factory output had contracted in
July for the first time in two years.
The manufacturing purchasing
managers index (PMI) fell to 49.1 in
July from a revised 51.4 in June the
first time it has been below the 50
mark that separates contraction from
expansion since July 2009, when the
UK was still in the depths of recession.
Although the manufacturing sector
accounts for just 13 per cent of eco-
nomic output, it recovered strongly
after the slump as companies
restocked and a weak pound boosted
exports.
Economists said the survey did not
bode well for economic growth in the
third-quarter, especially as there were
no obvious one off factors like the
Royal Wedding to blame.
Labour was quick to seize on the sur-
vey as proof that the coalition does not
have a plan for growth, arguing that it
is cutting too far, too fast.
Osbornes plans for growth were
also dealt a blow yesterday from the
International Monetary Fund (IMF).
The IMF maintained its forecast for UK
economic growth of 1.5 per cent this
year and 2.3 per cent in 2012, but
warned the mandate is met with a
very slim target.
News
2 CITYA.M. 2 AUGUST 2011
UK factories
slump in July
BY DAVID CROW
ECONOMICS

Relief over debt deal is short-lived

I
t didnt take long for the relief
caused by Sunday evenings US
debt plan to dissipate. First, theres
the dawning realisation that the
plan itself, passed by the House late
last night, is unlikely to help the US
avoid some sort of debt downgrade.
Nor is it likely to repair the wounds
caused by weeks of wrangling between
US lawmakers.
Then there were disappointing eco-
nomic figures on both sides of the
Atlantic that indicate tough times are
ahead, regardless of whose economic
policies are most in vogue.
Throw into the mix much renewed
nervousness around the Eurozone and
there can be no surprise that the
euphoria of global markets yesterday
morning was short-lived.
In the UK, the latest disappoint-
ment in manufacturing stats will sure-
ly put more pressure on chancellor
George Osborne to try to revive eco-
nomic growth. While some are look-
ing towards the revival of quantitative
easing, others look to supply-side
measures including tax cuts to get the
economy moving forwards again.
Although perhaps not the most sig-
nificant lever, the 50p tax rate contin-
ues to cause much debate and in
recent days the call for its scrapping
from London Mayor Boris Johnson has
provoked a lively debate.
On page 8 we present two views on
the issue; one from a conservative MP
who feels its scrapping is vital if we are
to energise the entrepreneurial spirit
that will help move the UK forwards;
and another from a former aide to
Gordon Brown who defends it.
WORTH A SECOND CHANCE
Giving people a second chance is not
just the prerogative of David Cameron,
it seems. Occasionally even the nor-
mally harsh City can be a forgiving
place too, which is a good thing as far
as African Minerals is concerned, a
company that specialises in extracting
iron ore from Sierra Leone.
African Minerals is chaired by the
entrepreneur Frank Timis, who was
chairman of Regal Petroleum when it
was fined 600,000 by Londons junior
stock market AIM for failing on 11 sep-
arate occasions to take reasonable
care to ensure its announcements
were not misleading, false or deceptive
and didnt omit material informa-
tion.
As well as being the executive chair-
man of African Minerals, Timis is the
second largest shareholder with a 12
per cent stake, but that hasnt stopped
the likes of BlackRock, M&G and
Capital from backing the group.
Indeed his presence is what pulls most
of those investors there. Also, only last
week the blue-chip Deutsche Bank
became the groups nominated advis-
er. Deutsche, who declined to com-
ment, was impressed by recent
additions to the groups board.
Yesterday shares in the group spiked
by around seven per cent to hit an all-
time high of 663p after it announced a
deal in which the Chinese Shandong
Iron & Steel Group will invest $1.5bn
in an iron ore project. AIM-listed
African Minerals is now worth around
2.2bn, not far short of the market
capitalisation of a FTSE-100 company.
Analysts from the likes of Deutsche
and Bank of America Merrill Lynch
weighed in with buy notes yesterday.
Timis has a record for making huge
sums of money for shareholders in
some deals, while other ventures such
as Regal Petroleum have ended less
successfully for him and those who
have backed him.
But there is always an exciting ride
along the way.
[email protected]
MORE ON AFRICAN MINERALS: P11
NEWS International asked a technol-
ogy firm to delete a large number of
emails from its system nine times in
15 months, a technology firm told
MPs probing the hacking scandal.
In a letter to the Home Affairs
Committee from India-based HCL
Technologies, the firm said that it
noticed nothing abnormal or unto-
ward about the requests by News
International.
The requests, which were made
between April 2010 and July 2011,
included wiping more than 200,000
delivery failure messages and prun-
ing archived messages, HCL told the
parliamentary committee.
HCL, responding to a request from
the committee chairman Keith Vaz,
said it did not store News
International data but managed the
firms computer systems.
News International said it keeps
backups of its core systems and was
working with police to restore them.
BY HARRY BANKS
MEDIA

NI ordered email deletion

NI boss Rupert Murdoch and former chief executive Rebekah Brooks Picture: REUTERS
NEWS | IN BRIEF
Cable to reveal copyright change
Business secretary Vince Cable is
expected to unveil reforms to UK copy-
right laws tomorrow, freeing up those
who make copies of their own music
and film collections for personal use
from potential lawsuits. In the UK, it is
still illegal to make personal copies of
bought content. Cable is expected to say
he will abolish such restrictions, in line
with the Hargreaves report on intellec-
tual property published in May.
Xchanging profits plummet
Pre-tax profits at back office services
group Xchanging plummeted 95 per
cent in the first half of 2011. The spon-
sor of the Oxford-Cambridge boat race
said that in the six months to the end of
June, profits before taxation fell to
812,000. The company parted ways
with its chief executive David Andrews
and cancelled its 2010 dividend in
February after surprising markets with
a profit warning. The firm is now keen to
cut costs by substantially paring the
number of senior managers in the UK,
cutting US overheads and closing its
London West End head office and relo-
cating to Leadenhall.
EDITORS LETTER
DAVID HELLIER
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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George Osborne, the
chancellor, is relying on
manufacturing growth
to offset depressed
domestic consumption
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
Acting 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
FOXCONN LOOKS TO AN AUTOMATED
FUTURE WITH 1M ROBOTS BY 2013
Foxconn, the worlds largest contract
electronics manufacturer by revenue,
plans to have as many robots as work-
ers in its China factories within three
years, according to Terry Gou, chair-
man and chief executive. Foxconn,
Chinas biggest employer, produced
Apples iPad and other electronic
gadgets. The group currently employs
1m workers but has just 10,000 robots
on its production lines.
TEENAGER CHARGED WITH LULZSEC
HACKING ATTACKS IS RELEASED ON
BAIL
A British teenager charged with a
range of hacking offences as part of
the Metropolitan Polices investiga-
tion into Anonymous and Lulz
Security was released on bail yester-
day. Scotland Yard officials allege that
Jake Davis, using the online nick-
name Topiary, is among the leaders
of LulzSec, an online group that has
claimed responsibility for dozens of
cyberattacks in the past two months.
CONSUMERS FIND FUNDS TO SAVE
MORE
Households are putting more money
aside in tax-free savings accounts
than ever before, despite rising
domestic bills and stagnant wage
growth. The number of active
Individual Savings Accounts (Isas),
rose to 15.3m in 2010-11, the highest
figure since Isas were first launched
in 1999, according to FT analysis of
data from HM Revenue & Customs.
POUNDLAND TO TACKLE EUROZONE
DISCOUNT SECTOR WITH IRISH
STORES
Poundland, the discount retailer that
has grown rapidly on the high street
in recent years, is poised to become
the first of the UKs growing ranks of
pound stores to expand abroad. It will
open six stores in Republic of Ireland.
KRAFT TAKES ON THE CHALLENGE OF
FUNDING CADBURY PENSION DEFICIT
Kraft Foods has agreed to a nine-year
funding plan to top up Cadburys
deficit-stricken pension scheme. The
American group confirmed last night
that it had agreed to underwrite the
schemes deficit and had already
made the first payment of 30m,
with payments to be made until 2019.
STORES SALE SAVES ONE IN TEN JOBS
AT TJ HUGHES
Nearly 450 jobs at TJ Hughes have
been saved after a buyer was found
for four of the shops owned by the
discount department store chain. The
administrator Ernst & Young said yes-
terday that Lewiss Home Retail, a
homewares company that is part of
the online retail company Benross
Group, had bought TJ Hughes flag-
ship store in Liverpool and sites in
Eastbourne, Glasgow and Sheffield.
ULTRA ELECTRONICS DEFY CUTS WITH
PROFIT RISE
Ultra Electronics, the engineering
company which specialises in sensors
and defence equipment, turned in a
23 per cent rise in first-half profit and
said it plans to expand through acqui-
sitions this year, despite delays and
cuts to defence orders in the US and
UK. Pre-tax profit rose to 43.9m in
the six months to 1 July, up from
35.7m the previous year.
UK STORES BOOSTED BY CHINESE
SHOPPERS
Chinese tourists have been on a spend-
ing spree in British shops, helping to
boost the profits of department stores
and luxury goods retailers, fresh fig-
ures have shown. Analysts said the
weak pound, the strength of the UK
luxury goods retail scene and the rise
of the Asian middle class combined to
see a surge in tourist spending.
COURT THROWS OUT CONVICTIONS IN
GENRE-AIG CASE
A federal appeals court yesterday
threw out the 2008 criminal convic-
tions of four former General Re Corp.
executives and an American
International Group Inc. ex-executive
stemming from a high-profile trial
over a reinsurance transaction that
prosecutors said masked a drop in
reserves at AIG. The US Second Circuit
Court of Appeals ordered a new trial
for former Gen Re chief executive
Ronald Ferguson and the four others.
CNNS MORGAN TRIES TO FEND OFF
SCRUTINY
CNN said it is standing by television
host Piers Morgan amid growing
media scrutiny over his past as a
tabloid editor in the UK, where a
widening scandal over reporting tac-
tics has led to a re-examination of the
tabloid newspaper industry.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE price of luxury homes in central
London has jumped by almost 10 per
cent in the past year, driven by
demand from wealthy Europeans
looking to invest outside of the trou-
bled Eurozone economies.
Prime London property prices
have risen 9.6 per cent since July
2010, and are more than 28 per cent
higher than two years ago, just after
the post-financial crisis trough in
March 2009, according to the latest
Prime Central London Index from
estate agent Knight Frank.
Once again the main reasons for
the level of demand in the prime
central London market can be attrib-
uted to the increased presence of
overseas purchasers and low stock
levels, said Noel Flint, who is head
of London residential at Knight
Frank.
In the last month our offices
have seen more interest from buyers
from continental Europe.
Property prices in Chelsea and
Mayfair have risen most steeply, with
values up 7.7 per cent and 7.2 per
cent respectively over the past six
months.
Overseas interest in London prop-
erty has traditionally been driven by
buyers from the Middle East and
eastern Europe, but more recently
buyers from Spain, Italy and Greece
have been flooding the market in
search of secure investments away
from turbulent domestic markets.
Research late last year showed that
three-quarters of cash-rich
Europeans buying property in
London do so as a means of diversify-
ing their wealth, and moving assets
overseas, with just a quarter buying
with the intention to make London
their primary residence.
The upward trend in London is in
stark contrast to the rest of the coun-
try, where average property prices
have fallen by more than one per
cent over the same period.
Eurozone worries also seem to
have hit British buyers desire to
move abroad.
Data from online property search
Primelocation.com revealed last
week that interest in homes in
Portugal, Italy, Greece and Spain fell
by almost a quarter (24 per cent)
between the first and second quar-
ters of this year.
Europes rich
flood Londons
house market
THOMAS Cook made a surprise entry
into the UKs top ten most shorted
stocks by the end of July after it
issued its third profit warning in a
year, according to DataExplorers.
The embattled holiday operator
had more than ten per cent of its
shares out on loan by 28 July after it
warned on 12 July that it was likely to
miss its full-year profit forecasts.
It joined others struggling to main-
tain sales as cash-strapped consumers
cut back on discretionary spending.
Average short interest across the
FTSE All Share is only 1.74 per cent
but consumer-facing groups such as
second-tier retailers, travel and bet-
ting companies see far greater
demand from short sellers and domi-
nate the list of most shorted stocks,
said DataExplorers research director
Will Duff Gordon.
Directory publisher Yell Group
topped the list for another month
with almost a fifth of its shares on
loan as bearish investors saw it facing
a long-term decline.
Short sellers also targeted smaller
retailers such as electrical goods spe-
cialist Dixons and Argos owner Home
Retail Group that have had their sales
battered by falling consumer confi-
dence and spending.
Thomas Cook in top shorted
stocks after profit warning
BY ELIZABETH FOURNIER
PROPERTY

BY ALISON LOCK
CAPITAL MARKETS

News
3 CITYA.M. 2 AUGUST 2011
Prime property prices are up 10 per cent since last year Picture: Micha Theiner/CityAM
ANALYSIS: TOP TEN MOST SHORTED FTSE STOCKS SOURCE: DATAEXPLORERS
Rank Company Shares on loan (%)
1 Yell Group 19.80
2 Dixons Retail 19.21
3 Home Retail Group 17.25
4 Provident Financial 15.42
5 HMV 14.21
6 Carpetright 12.61
7 Lonrho 11.68
8 Thomas Cook 10.80
9 Betfair Group 10.48
10 Next Plc 10.18
THE US could still be downgraded by
ratings agencies despite passing its
deficit reduction plan yesterday, say
economists, leaving debt markets
under a cloud of uncertainty.
The deal to cut US spending by
$2.4 trillion over the next decade
falls far short of S&Ps stated require-
ment that Washington would have to
produce some $4 trillion in cuts over
the medium-term to avoid a down-
grade.
The deal does not put the US fis-
cal position on a sustainable path
and will not prevent the US from los-
ing its AAA credit rating, says
Capital Economics Paul Dales.
Just $6bn in cuts are planned for
this year in the context of a deficit
worth $1.049 trillion.
A downgrade would put the US on
the same ratings level as China,
Japan and New Zealand, and could
force some funds to offload their US
treasuries immediately if they have
legal mandates that requires them to
hold only triple-A rated debt.
INGs James Knightly says that
despite the deal: The AAA rating is
not assured with a downgrade still
potentially having severe negative
consequences for the economy.
The plan voted through yesterday
also leaves the lions share of the cuts
to be decided by a congressional com-
mittee, which will report in
November, with a vote scheduled for
just before Christmas.
Pimcos Mohammed El-Erian sug-
gested that S&P must be under a lot
of pressure from the US government
not to downgrade the sovereign,
which could buy the US some time
until the committee reports.
However, few expect a dramatic
effect on treasury yields, even if the
US is downgraded. Newedges Bill
Blain says simply: The $7.5 trillion
US Treasury market is irreplaceable.
Triple A rating
still in doubt
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BY JULIET SAMUEL
US ECONOMY

EARLY gains in the US markets were

reversed yesterday after poor manufac-
turing data put the spotlight firmly
back on the faltering US economy.
The Institute for Supply
Management (ISM) reported the slow-
est growth in US manufacturing in
two years, with new orders falling to
their lowest level since June 2009.
US stocks swung from a one per
cent gain at the open to a one per cent
slide mid-afternoon, but losses pared
later on renewed hopes that the debt
ceiling deal was nearing approval.
The headline index fell to 50.9, and
the forward-looking new orders index
dropped to below 50, though the ISM
said this could be down to companies
putting off decisions until the debt
ceiling deal had been reached.
US manufacturing at two-year low
US ECONOMY

News
4 CITYA.M. 2 AUGUST 2011
KEY ELEMENTS OF THE US DEBT DEAL
Q.
WHATS BEEN AGREED?
A.
Spending cuts totalling $2.4 tril-
lion (1.48 trillion) over 10 years
will be approved in two stages, with
$917bn available straight away and a
further $1.5 trillion subject to a fur-
ther vote later in the year. President
Obama will be allowed to raise the
debt ceiling in three steps.
Q.
HOW WILL THE SPENDING CUTS
WORK?
A.
Almost $1 trillion (614bn) of cuts
will kick in immediately, spread
over 10 years and balanced between
defence and non-defence spending. A
cap on the cuts will be set for each
year, with harsher upper limits saved
for later in the programme once the
economy has (hopefully) stabilised.
Less than one per cent of the cuts will
be made through 2012.
Q.
AND THE OTHER $1.5 TRILLION?
A.
A so-called bipartisan committee
of 12 will be tasked with allocat-
ing the extra savings, with the tax
code and benefit programmes likely
to be high on its list of targets. If an
agreement cant be reached on at
least $1.2 trillion of savings, or
Congress rejects the plan, automatic
cuts of that amount will be imple-
mented from 2013.
Q.
HOW LIKELY IS IT THAT THE TRIG-
GER CUTS WILL BE USED?
A.
Quite likely. Democrats have been
pushing for tax increases
throughout the negotiations, and will
be keen to get them
back on the table of
the bipartisan commit-
tee. With Democrat-friendly defence
cuts written into the back-up meas-
ure, there will be little incentive to
vote for the second round of savings
unless they include tax hikes. But the
remaining discretionary cuts will
include Medicare, meaning neither
partys sacred cow is safe.
Q.
WHAT ABOUT THE BALANCED
BUDGET AMENDMENT?
A.
This clause essentially bans the
US from any form of deficit for
the fiscal year, with government only
allowed to spend what it collects in
tax revenue unless three-fifths of the
House votes in favour of allowing a
spending excess.
Q A
&
WINNERS AND LOSERS
John Boehner
Braggedthat the GOPgot
98pc of its wishes, but has
beenbruisedby the fight to
get there, withhis tactic of
brinkmanshipunlikely to win
himpopular favour. Will be
pleasedthe balancedbudget
amendment survived.
DEFICIT CUTS OVER 10 YEARS
To be
approved
by end
of 2011
5
10
4
10
Harry Reid
Thoughhis planto boost the
debt ceilingby $2.7trillion
straight off was rejected,
Reidhas always beenpre-
paredto compromise. Will be
pleasedto have helpedpush
the deal through, despite
angeringsome liberals.
Mitch McConnell
Has raised his profile by
staying at the centre of
negotations and making
sure pain was shared
among parties at the table.
With a default avoided his
case to be majority leader in
2013 is strong.
Barack Obama
Can take solace from the fact that the
debt ceiling will be raised through the
end of his first term, and that any
automatic cuts will hit in the areas
Democrats would favour. But his
approval rating has dropped signifi-
cantly, and his reputation within his
own party has been damaged by worries
that concessions to the Republicans have set a
precedent for future fiscal negotiations.
4
10
6
10
News
5 CITYA.M. 2 AUGUST 2011
EUROPE yesterday showed signs that
confidence was unravelling after a
tepid response to Greeces latest
bailout, as the tiny Eurozone island
of Cyprus swung closer to a bailout.
The Dax plummeted more than
2.8 per cent, dragging the Eurostoxx
50 down 2.9 per cent, although the
FTSE fell just 0.7 per cent.
Trading in shares of Intesa
Sanpaolo Italys largest lender
and Banca Monte dei Paschi were
suspended due to falling too quickly.
Both banks had plunged more than
7.8 per cent by the days close, while
Unicredit fell 4.3 per cent.
Italian ten-year yields also shot
above six per cent seen as a danger-
ous threshold for European debt
and the spread between yields on
Italian debt and equivalent German
bunds rose to 350 basis points.
The cost of Spains ten-year debt
continued to move northwards high
above the six per cent line, reaching
6.2 per cent.
Traders were even less impressed
with the euro than with the US dol-
lar: the single currency fell by more
than one per cent against the green-
back throughout yesterday. It also
set a new record low of less than
SFr1.1 against the Swiss franc.
European jobs figures gave little
cause for joy: the overall unemploy-
ment rate stayed at 9.9 per cent but
the numbers of unemployed work-
ers rose by 18,000.
Cyprus also stirred up unease in
the bloc after its biggest bank, the
Bank of Cyprus, said there was an
imminent threat of the country
joining the European Union sup-
port mechanism.
The countrys banking sector
holds around 5bn (4.4bn) worth of
Greek sovereign debt and is heavily
reliant on the stricken country for
trade. The yield on its 10-year bonds
was at 10.54 per cent yesterday, up
from 9.71 per cent on Friday.
BY JULIET SAMUEL & DAVID CROW
EUROZONE

Eurozone crisis
SPAINS auction of mobile telecoms
radio frequencies raised 1.65bn
(1.44bn), scraping above the mini-
mum 1.62bn price tag set by the
government.
The sale formed part of Spains
attempt to get its government
deficit down to six per cent this
year from over nine per cent.
The country was put on a nega-
tive credit watch by Moodys on
Friday, and yields on its ten-year
debt hit 6.2 per cent yesterday.
The auction saw Spains largest
three mobile operators Telefonica,
Vodafone and France Telecoms
Orange split valuable extra radio
frequencies, crucial to allow them
to meet growing demand for data
use on smartphones and tablets.
Eleven telecoms operators
applied and were granted the right
to enter the auction, crucial in dis-
tributing enough mobile frequen-
cies to allow operators to meet
future customer demand for data
use on smartphones and tablets.
Spain gets its
minimum price
in telco sale
EUROZONE

European stocks slump

and Italys banks suffer
as Greek relief wanes
$1.5 trillion
$917bn
Approved
yesterday
Committee to report on
cuts by November 2011
$350 billion
defense cuts
Other discretionary
spending
$1.049
Trillion
Deficit Size
Debt
$14.3
Trillion
Trillion
2011-2012
Deficit Target
$1.043
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HSBC defied the equities gloom to
jump 2.19 per cent yesterday after
unveiling a rise in profits versus expec-
tations of a decline.
The bank saw its half-year pre-tax
profit rise to $11.5bn (7.1bn), three per
cent higher than the same period last
year, allowing it to boost its dividend
for the period by 13 per cent to 18
cents.
Its underlying profits were up 13 per
cent to $11.4bn on the back of a 32 per
cent fall in impairments, which the
bank said was driven by running off
the unwanted parts of its US business.
The bank announced the sale of its
New York branch network late on
Sunday for $1bn and said it is still in
talks with a couple of potential buy-
ers for its US credit cards business.
European profits were knocked by a
$611m provision for compensating UK
customers mis-sold payment protec-
tion insurance (PPI), with earnings in
the region falling 29 per cent to
$2.2bn.
But the bank said that its global
banking and markets division (GBM)
HSBCs investment bank fared better
than rivals due to providing relatively
unusual services such as trading
access to a wider range of emerging
markets than others. Nonetheless, its
revenues slumped nine per cent.
HSBC unveils
surprise rise
in earnings
BY JULIET SAMUEL
BANKING

News
7 CITYA.M. 2 AUGUST 2011
HSBC chief Stuart Gulliver is slashing jobs despite a rise in earnings.
ANALYSIS l HSBC Holdings
p
26Jul 27Jul 28Jul 29Jul 1 Aug
620
615
610
605
600
595
607.50
1 Aug
30,000 jobs? Its a start, says Gulliver
W
HEN HSBC chief Stuart
Gulliver told investors in
May that the bank had a
cost problem, few expect-
ed him to wield the axe quite so dra-
matically.
But he insists that casting out mid-
dle managers to the tune of 30,000 in
gross job cuts is still not enough: It
will be a very long journey, he
warned yesterday. Given that the
banks return on equity came inside
its 12-15 per cent target range, that
might seem a tad pedantic.
But not once you factor in the wave
of regulatory reform sweeping
through the banking sector. Gulliver
revealed that under Basel III rules,
the banks RoE would have been a
less inspiring 10.5 per cent.
We would have needed to make
an extra $2bn this half-year to hit our
target under Basel III, he said. Few
other banks have been quite so frank.
Still, analysts are optimistic,
upgrading their price targets left and
right yesterday. They were pleased by
the banks suggestion that net inter-
est margins are on the way up despite
being eroded this year by its US busi-
ness and encouraged by its shift
towards drawing more on higher-
growth markets for revenues.
But it still pays to be cautious.
Costs in Asia have been hit by wage
inflation, which is expected to con-
tinue even as China slows, due to the
concentration of worker-hungry
banks in new financial centres.
And Gullivers reasonably strong
confidence that the Chinese govern-
ment can engineer a soft landing
could prove misplaced.
He still has a lot to prove.
BOTTOMLINE
Analysis by Juliet Samuel
NEW British bank Aldermore has
broken even, two years after its
launch, and has accumulated total
assets of more than 1bn, the compa-
ny said yesterday.
Aldermore said it now had loans
of more than 800m for 9,500 cus-
tomers, and had 42,000 deposit
accounts.
Aldermore and other new
entrants such as Metro Bank,
Haymarket Financial (HayFin) and
NBNK are aiming to challenge the
dominance of Britains Big Four
banks.
NEDBANK Group, South Africas
fourth-largest bank, reported a 26 per
cent rise in first-half profit yesterday,
helped by a drop in bad debts and its
push to boost revenue from fees.
Nedbank, majority owned by insur-
er Old Mutual, was hit hard by bad
debts after 2009s recession took over
1m jobs out of the economy,
squeezed corporate earnings and left
borrowers with ballooning house-
hold debts.
It has turned its focus to increasing
the money it makes on transactions,
to offset the slack demand for credit.
Nedbank first
half profits rise
Aldermore bank
has broken even
BANKING

BANKING

T
HE last Conservative
manifesto was
unequivocally right to
include the pledge that
we do not regard the 50p
tax rate as a permanent fea-
ture of the tax system as,
indeed, was Alan Johnson
when he called for it to be
ditched last November, when
he was Labours shadow
chancellor.
Introduced by the previous
Labour government in its
dying days, the 50p rate is
something the coalition gov-
ernment should abolish as
soon as possible.
Thats why I was delighted
when the chancellor
announced a review of tax
on top earners in the last
budget. Im confident that it
will show that the 50p rate
raises so little, if indeed it
raises anything, that its abo-
lition would be unlikely to
harm revenues. There are
three obvious reasons it
needs to go.
First, all empirical evi-
dence on the relationship
between tax rates and tax
revenues shows that, after a
certain point, tax cuts lead
to higher revenues. As one
who supports a progressive
tax system, I want the rich to
pay more in taxes. The way
to achieve this is through
scrapping the 50p rate.
When Margaret Thatcher
slashed the top income tax
rate from 83p to 60p, and
eventually to 40p, taxes paid
by the rich rocketed. During
the Thatcher years, the
income tax take from the top
10 per cent of earners went
up from 32 per cent to 45 per
cent. Similarly, the Reagan
era tax cuts in the US led to
higher tax revenues from the
rich.
Second, the 50p rate
makes the UK extremely
uncompetitive for high earn-
ers. After Sweden and
Denmark, we have the high-
est top tax rate in the world.
Such a punitive rate only
puts pressure on those affect-
ed by it to mitigate their tax
exposure however possible.
Whether this takes the form
of tax avoidance, tax evasion
or even leaving the UK, the
result is always the same: a
drop in total tax revenue.
Third, scrapping the top
tax rate will provide an
immediate boost to econom-
ic growth. Other supply side
measures the government
has already taken, such as
cutting red tape and invest-
ing in skills are also impor-
tant, but they all take far
longer than tax measures to
kick in.
The people who create
wealth in our society do so
most often by risking every-
thing they have in the hope
of greater returns. It is a step
that many people are unwill-
ing to take. This profit-seek-
ing motive should always be
welcomed, and never treated
with contempt or ridicule, as
it generates additional
wealth not only for those
who start up the business
but also for all those who are
employed by it, supply it and
trade with it.
It will take courage to
scrap the 50p tax rate. But
given the tough, but neces-
sary, economic decisions the
coalition government has
already made, I am personal-
ly convinced that the right
decision will be made.
Sajid Javid is the Conservative
MP for Bromsgrove.
T
HEemotion and politics
surrounding the 50p
debate far outweighs its
economic significance
and the heat is growing as Lib
Dems and Tories argue out
the issue publicly.
The 50p top rate is seen by
some as a major factor hold-
ing back a nascent economic
recovery. Cut it back to 40p,
goes the theory, and enter-
prise will gush out of every
pore. Firms who are queuing
up to leave the UK will change
their minds. Entrepreneurs
will emerge from every uni-
versity and back street.
So were we mad in
announcing the introduction
of the 50p back in Budget
2009? Was this Labour getting
its own back on the wealthy
and taking revenge on the
bankers? Conspiracy theorists
may think so but in fact it was
a pragmatic response to need-
ing a plan to reduce the
deficit and making sure the
pain was equally spread
around different income
groups. And it was realistic on
what a 50p rate would and
would not do.
Take a hard look at the
policy. The 50p tax rate does
not come in at median
wages or even at average
wages. It comes in at 150k.
That is six times the typical
full timers wage and three
times what someone as high
as the 90th percentile gets.
Only around one per cent of
the population earns this
much. It is a marginal tax
rate that applies solely to
earnings over 150k not to
those below it as popular dis-
cussion sometimes suggests.
Not only that but if the
much desired rebalancing of
the UK economy is to hap-
pen we will have to see the
rise of middle sized manu-
facturing firms. The key peo-
ple to boost this sector rarely
earn the sort of money that
the 50p tax rate would
impact upon.
The trouble is that perspec-
tives on these issues are highly
coloured by the experiences of
those who most strongly advo-
cate them the very well paid
in the City and the CEOs of
the biggest firms. The 50p
does mean they pay more
and unsurprisingly they
would love it to go.
But surely it might be
argued, dont experts say that
the 50p rate wont raise much
money? That is certainly what
the Institute for Fiscal Studies
said a while back. This was
mainly though because it
thought that those who earn
these sorts of sums are pretty
smart at avoiding ever paying
such a rate they turn earn-
ings into capital gains, or hide
them away in aided by
accountants.
The Treasury reckons that
the 50p tax would raise some
serious money up to 2.4bn.
If it is right then scrapping it
will leave a hole in the
Budget that needs to be filled
in another way and there
are no easy options. In truth
we do not yet know how
much it will raise and there-
fore how much scrapping it
would cost although some
economists pointed to unex-
pectedly high revenue from
income tax recently that may
point to even higher revenues
from the 50p than the
Treasury thought. Case very
much not proven.
Dan Corry is an FTI Consulting
director and a former adviser to
Gordon Brown
Should the 50p rate be scrapped?
Debate
8 CITYA.M. 2 AUGUST 2011
CITY VIEWS: DO YOU THINK THE GOVERNMENT SHOULD WAIT TO REDUCE THE 50P TAX? Interviews by Helen Thompson
Yes, they should keep it
for the moment. It may
not be fair to everyone but
its needed to pay off UK
debt. The revenue has to
be generated somewhere
and this is the best way.
No, the 50p tax was
introduced a few years
ago as a temporary meas-
ure. I think it will be justi-
fied to reduce it in the
next budget as it is
disproportionately high.
No, personally I think that it
is unfair only penalising the
high earners, because they
are the ones who work hard
to earn their money. The
quicker they get rid of it, the
better.
SAJID JAVID, MP
YES
DAN CORRY
NO
ANNALISA STORSILLO | WILLIS JACK HARVEY | LOREGA LTD JASON WARD | MARKETRESEARCH.COM
* These views are those of the individuals below and not necessarily those of their company.
LEGAL FIRM
BROADENS
RECRUITING
HORIZONS
CITY INTERNSHIPS are notoriously hard
to come by. But not for regular readers of
The Capitalist such as Ratidzo Chinyuku,
who wrote to Taylor Wessing partner
Martin Winter asking for a work place-
ment after reading about his charity work
in her homeland of Zimbabwe in this col-
umn on 12 April.
Following her successful appeal, the 15-
year-old schoolgirl is now half way through
a two-week placement in the law firm,
where she is helping the private equity
team by doing background research on the
cash generative businesses they have
been asked to pitch for and the personali-
ties of the people they are meeting.
Chinyuku, who previously had mixed
perceptions of the law, based on the TV
show The Good Wife, has been inspired
by her legal experience. And Winter, a sen-
ior partner and head of private equity at
Taylor Wessing, is now keen to start a pro-
gramme to make law as representative as
possible of the wider community.
There is a feeling the legal profession
has become too narrow in how it
recruits, said Wessing. So we want to
start a programme that widens the net to
younger people who dont have the con-
part of the hotel again sooner rather than
later. Precisely when that will be, however,
is anyones guess. I wish I knew, said
Thomason. Hopefully in the next three
months, so I can get on and run my hotel
again.
SLEEPING ON THE JOB
IT STARTED as a trial to let jetlagged
bankers take a rest in the middle of the
day, but Jon Grays sleep pods have
proved such a hit that the former Merrill
Lynch banker is no longer renting his
sleeping contraptions but selling them off
as fast as his Battersea production plant
can put them together.
Five investment banks have placed
orders for the 1,650 sleeping tubes (pic-
tured left), as well as ten law firms and
even one hospital for the staff working
demanding shift patterns, not the
patients, The Capitalist should point out.
Obviously, the City firms arent turn-
ing their quiet back rooms into bed-
rooms to get out of doing their work; it
is all about short rests that signifi-
cantly increase an individuals work
capacity. Like having a cup of coffee,
but healthier, supplied Gray helpfully.
tacts to get their foot in the door. There
are plenty of schools in outer and inner
London who would welcome the opportu-
nity. Form an orderly queue
PENTHOUSE PLOT
ANYONE in the market for a new pent-
house? Why not trot along to Strutt &
Parkers Knightsbridge branch to take a
look at the Battersea penthouse that fall-
en hotels tycoon Andrew Davis has put up
for sale. He is keen to make some cash fol-
lowing the collapse of his country house
hotels empire Von Essen Hotels Group.
Three bedrooms (all en suite, naturally),
plus a generous reception area leading
out to a 300 square foot terrace with views
of Canary Wharf and all for just 2.5m,
or one hundredth of the debt Daviss busi-
ness owes creditors Barclays and Lloyds.
However, while Davis is free to flog the
penthouse, located at the top of his Hotel
Verta in Battersea, the events space on the
floor below has fallen into the hands of
the administrators as it is part
of Von Essen Hotels Group
much to the dismay of the
hotels general manager
Andrew Thomason, who has
been told he can not rent out
the space until the adminis-
tration process has been com-
pleted.
Since the function area usu-
ally rents for 5,000 to 7,000
for 24 hours, that is some loss of
income, so lets hope Floor 13 becomes
Taylor
Wessing
wants to
widen the net
to younger
people who
dont have
the contacts
to get into law
9
The Capitalist
CITYA.M. 2 AUGUST 2011 EDITED BY
HARRIET DENNYS
Got A Story? Email
[email protected]
Follow The Capitalist
on Twitter: @citycapitalist
Ratidzo Chinyuku (fourth from left) with TWs private equity lawyers. Pic: Micha Theiner/City A.M.
Out of bounds: Batterseas landmark Hotel Verta
LAIRD shares plunged 15 per cent
yesterday after Cooper Industries
announced it was withdrawing its
bid for the electronics components
firm, saying it is unwilling to pro-
ceed at Lairds asking price.
Cooper Industries two-month bat-
tle to take over the smaller British
rival came to a deadlock this week-
end after the two companies were
unable to agree on a price.
The Houston-based electronics
firm sweetened its offer from 185 to
200p per share last Wednesday only
to be rebuffed two days later.
Lairds chairman Nigel Keen wrote
to Coopers chief executive Kirk
Hachigian to say that its board was
not prepared to meet with Cooper
unless it increased its indicative offer
to 220p a share.
Sources close to City A.M said
Lairds response came as a surprise to
Cooper, as it marked a U-turn in the
terms under which it had initially
agreed to meet with Cooper.
In a statement to the stock
exchange yesterday the firm said:
Cooper continues to believe that
there would be strategic merit in
acquiring Laird but is unwilling to
proceed at the price at which the
Board of Laird will engage with
Cooper or without being able to
undertake due diligence.
Laird dropped 27.9p to close at
159.8p, its lowest price since Coopers
initial approach on 16 June.
Cooper drops
takeover bid
for rival Laird
BY KASMIRA JEFFORD
ELECTRONICS

PRESSURE on Charter International

mounted yesterday as its investor
roadshow to win support for its new
chief executive and strategy moved to
the US after days of UK meetings.
Charter has rejected two offers
from turnaround investor Melrose,
but several of its major investors have
called for it to allow Melrose to view
its books, while Richard Buxton,
Schroders head of UK equities, told
Charters chairman Lars Emilson he
was underwhelmed with the cost-
cutting strategy it had presented.
Analysts said investors were likely
to take Buxton seriously. People pay a
lot of attention to what he has to say,
said Collins Stewart analyst Mark
Wilson. Our view is that the most
likely option is that Melrose is success-
ful at 8.40 or close.
Charter has been forced to cancel a
meeting with minority US investors
this week, sources told City A.M., due to
the level of interest it has received
from its larger shareholders there.
Sources close to Charter, however,
said the board was very much listen-
ing to all of its shareholders.
Schroders holds eight per cent of
Charter, so 92 per cent of investors
still have to be considered, one said.
But Melrose sources said Charters
investors, 30 per cent of whom hold
shares in both firms, dont feel they
have had their questions answered.
Melrose bid for Charter gains
pace as roadshow moves on
BY ALISON LOCK
INDUSTRY

News
10 CITYA.M. 2 AUGUST 2011
ANALYSIS l Laird
p
26Jul 27Jul 28Jul 29Jul 1 Aug
190
180
170
160
150
159.80
1 Aug
Barclays Capital acted as adviser to
Cooper Industries in its bid for Laird.
Mark Warham, co-head of European
M&A, led the advisory alongside man-
aging director Mark Todd.
Warhams team recently worked on
the London Stock Exchanges failed
4bn merger with Canadian peer
TMX Group and was also recently
hired by BHP to advise on its deal
with Chesapeake.
Born in Leeds, Warham joined BarCap
in May 2009 from Morgan Stanley,
where he was head of UK M&A. He is
currently a member of the Takeover
Panel, and served as its director gen-
eral between 2005 and 2007.
Mark Todd, managing director of
BarCap, joined the investment bank
from Citigroups mergers and acquisi-
tions team in July 2009. Over the past
year, Todd acted as adviser to Irish
food company Greencore during its
unsuccessful attempt to merge with
Northern Foods.
MEET THE ADVISERS
MARK WARHAM
BARCLAYS
CAPITAL
Melrose executive chairman Christopher Miller has tabled a 1.4bn offer for Charter
AFRICAN Minerals has finalised a
1.5bn deal with Chinas Shandong
Iron & Steel, handing over a 25 per
cent stake in its flagship Tonkolili
iron ore project in Sierra Leone.
Shandong, one of the worlds
largest iron and steel groups, will
also purchase iron ore at a discount-
ed price under an off-take arrange-
ment, and has the option of buying
up to 25 per cent of annual iron ore
production from each of Tonkolilis
three production phases.
The funding will help AIM-listed
African Minerals to press on with the
second phase of its expansion project
and repay a $417m (255.8m) loan.
Shandong, which first signed a
memorandum of understanding
with African Minerals last year, still
needs to secure Chinese government
approval before it can go ahead with
the funding.
Deutsche Bank analyst Grant
Sporre said in a note that, if approved,
the deal significantly de-risks the
projects as it is a significant vote of
confidence in Sierra Leone by China.
African Minerals, run by the con-
troversial Romanian businessman
Frank Timis, was previously known
as the Sierra Leone Diamond
Company.
African Minerals signs
with Chinas Shandong
BY KASMIRA JEFFORD
MINING

News
11 CITYA.M. 2 AUGUST 2011
AS a self-made billionaire, Frank
Timis entrepreneurial skills in the
global natural resources industry
are hard to match. Nicknamed
The Gusher in the City, he is well
known for being a fast-talking risk-
taker.
His personal website was recent-
ly re-launched, drawing a less-than-
subtle focus on his social
responsibility and charitable
deeds. It is clear that Timis is try-
ing to draw a firm line under his
controversial past.
At the tender age of 15 he fled
Romania and eventually sought
refugee in Australia. He was
charged twice in Australia in the
early 1990s for possessing heroin,
something he has never denied but
is not proud of.
However, this blip in his
past has done very little to
negatively affect his
future success.
He cut his teeth in the
industry as a labourer on
a rig in Western
Australia, but had
embarked on his first
mining venture by
the age of 27.
One of the many
things that set him
apart from other
entrepreneurs is his
willingness to finan-
cially back his own projects,
such as the $52m (31.9m) he
invested of his own money in
African Minerals.
This is likely to be one of
the reasons why shareholders,
from JP Morgan to Goldman Sachs,
repeatedly trust and support him
regardless of a previous brush with
the authorities.
In 2009, Regal Petroleum, for-
merly part of Timis Corporations
portfolio, was fined a record sum
of 600,000 for consistently mis-
leading shareholders. A blemish
that appears to have been forgot-
ten for now.
Despite owning two
B o m b a r d i e r
Challenger 604 air-
planes, he would
never describe
himself as the
flashy type, as he
lives in London in
a rented apart-
ment without a
car.
The risk taker who puts his
money where his mouth is
BY ESHE NELSON
PROFILE

FRANK TIMIS
NEWS Corp has appointed
Andrea Zappia as chief executive
of Sky Italia, replacing Tom
Mockridge, who left the broad-
caster to fill the vacant top job at
News International.
Zappia will leave his job as a
director at former News Corp
takeover target BSkyB with
immediate effect.
He will take on the running
battle with Italian Prime
Minister and media mogul Silvio
Berlusconi in the bid to be the
top pay-TV operator in the coun-
try.
Zappia, a key lieutenant to
James Murdoch, has a history
with Sky Italia, having worked
there for seven years following
senior marketing roles at Ferrari,
Fila and Procter & Gamble.
His predecessor Mockridge was
parachuted into News Corps UK
newspaper business News
International last month after
the resignation of former News
of the World editor Rebekah
Brooks.
The former newspaper worker
from Murdochs Australian busi-
ness, now tasked with rescuing
the tycoons British media opera-
tions in the wake of the phone
hacking scandal, is seen as an
antidote to Brooks gregarious
management style.
Zappia gets
Sky Italia job
BY STEVE DINNEEN
MEDIA

TWITTER yesterday confirmed it

has completed a significant
round of funding led by Russian
technology investor Digital Sky
Technologies (DST).
The microblogging site said the
new funds, in which several other
investors were involved, would be
used to aggressively innovate,
hire more great people and invest
in international expansion.
It is understood DST took a stake
of around $400m (246m), with
another $400m being split
between other investors, giving
Twitter a valuation of up to $8bn.
T Rowe Price is thought to be
one of the minority investors, tak-
ing a stake worth around $90m.
Analysts say the fundraising
makes it unlikely Twitter will seek
to IPO in the short term.
DST already has a stake of more
than $1bn in Facebook. In
February it invested $100m in
Spotify, valuing it at $1bn.
Twitter confirms significant
investment from Russian firm
TECHNOLOGY

Arena raced ahead of attendance expectations in its first half Picture: ACTION IMAGES
News
CITYA.M. 2 AUGUST 2011
BRILLIANT!
BRILLIANT!
BRILLIANT!
Chris Tarrant, BBC Radio 2
NOL COWARD THEATRE
0844 482 5141
12
Arena Leisure sees 11 per
cent spike in attendance
ARENA Leisure saw its shares spike
almost eight per cent yesterday before
settling three per cent up, after its
customer adds raced ahead of expec-
tations.
The racecourse owner said its atten-
dance figures rose by more than 11
per cent year-on-year in the first half.
The surge came despite a drop in
pre-tax profits, to 1.4m from 2m,
and revenues, from 30.1m to 28.2m.
This was largely due to an expected
shortfall in the horseracing levy
imposed on UK-based bookmakers.
Arena said it is in talks with the
government on a remedy for the
shortfall, without which its revenues
rose by 3m.
GAMING

Twitter boss Dick Costolo wants to expand

CHARLES ALLEN TO LEAD LABOUR REVIEW
Former ITV chief executive and EMI chairman Charles Allen was yesterday appointed to lead a
management and commercial review of the Labour Party. He was hired by incoming general secre-
tary Iain McNicol to get the partys house in order in time for the next general election. Leader Ed
Miliband said the appointment is another step in the right direction for Labour. Picture: REX
GUARDIAN Media Group (GMG) has
endured another challenging year,
seeing revenues fall nine per cent to
255m, while flagship newspaper edi-
tor Alan Rusbridger took home
455,000.
GMG chief executive Andrew Miller
earned 572,000, while axed manag-
ing director Tim Brooks received a
510,000 final settlement.
The firm reported an operating loss
of 54.5m, up slightly on last year
despite swingeing cost cuts. Its pre-tax
profit crept into the black at 9m,
compared to last years 171m loss.
Its Guardian News & Media (GNM)
newspaper business also saw its rev-
enues drop, from 221m to 198m,
hit by a steep decline in recruitment
ads. Its operating loss also grew slight-
ly to 38.3m. The company said digi-
tal revenues were robust but were
not enough to offset the decline.
Its Trader Media Group business
saw an operating profit of 120.1m.
GMG sees its
revenues slide
in tough market
MEDIA

Andrea Zappia will

return to Sky Italia
to take the top job,
replacing Tom
Mockridge
ArcelorMittal and US energy group
Peabody were forced to go hostile with
their A$4.7bn (3.2bn) bid for
Macarthur Coal after the Australian
mining group said the offer underval-
ued the company and was working on
attracting a rival offer.
Peabody the largest US coal compa-
ny, and ArcelorMittal , the worlds top
steelmaker, have been courting
Macarthur to secure its resources of
pulverised coal, a key steelmaking
ingredient, but talks collapsed this
weekend after the board refused to
close the door to rival suitors in
exchange for a higher offer price.
In a statement to the Australian
Securities Exchange, ArcelorMittal and
Peabody said the all-cash offer was
worth A$15.50 a share and also
offered Macarthur shareholders a divi-
dend of up to 16 cents a share.
Macarthur was not willing to
engage on customary terms even with
Peabody and ArcelorMittals willing-
ness to improve the price, said
Gregory H Boyce, Peabodys chairman
and chief executive. We have decided
to take this attractive offer directly to
Macarthur shareholders to provide
them with significant value.
Macarthur told shareholders earlier
in the day to take no action on the bid,
while also revealing that it had
rebuffed an even higher proposal from
the two parties, at A$16 a share, that
was conditional to no-shop and no-
talk obligations with other interested
parties.
Instead, the Australian firm
demanded for a conditional price
increase to A$18 per share if it was
backed by 90 per cent of shareholders.
This was rejected by the Arcelor and
Peabody.
Macarthur added that the represen-
tative from its largest shareholder Citic
Resources has taken a temporary leave
of absence, to avoid any future actual
or potential conflict of interest, reviv-
ing speculation that Citic too may be
interested.
ArcelorMittal owns 16 per cent of
Macarthurs shares, second only to
Citic, which controls 24 per cent of the
company.
Arcelor and
Peabody go
hostile on bid
BY KASMIRA JEFFORD
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LLOYDS insurer Hiscox said record
levels of catastrophes over the past
six months pushed it to an 85.6m
pre-tax loss yesterday.
Hiscoxs chief executive Bronek
Masojada told City A.M. the period
had been very active and 2011
would be a record-breaking year
for disasters, but played down the
impact on the insurer.
This is not the end of the world,
it is what we are here for, he said.
Masojada also denied that Hiscox
would be following rival Lancashire
in returning its tax base to the UK,
noting that Hiscox was very happy
being based in Bermuda.
We are building business in the
US and being based in Bermuda
makes us less London-centric, he
added.
Hiscox, the second-biggest Lloyds
insurer, cut its gross written premi-
ums by 6.7 per cent compared with
the first half of 2010, to 847.5m, in
line with its aim of steering clear of
unprofitable underwriting.
Masojada said he expected full-
year revenues to be flat or slightly
lower than 2010, while Hiscox had
raised the capacity of its main syn-
dicate 33 by 100m for 2012, effec-
tively providing ourselves with a bit
more headroom for next year as
rates improved.
Analysts on average expect
Hiscox to turn an 11m profit for
the full year.
Hiscox backs Bermuda tax base as
catastrophes push it to 86m loss
BY ALISON LOCK
INSURANCE

EADS buys
satellite firm
for 587m
EUROPEAN aerospace group EADS
kept up a hot pace of acquisitions
with a $960m (587.14) cash deal to
buy satellite communications firm
Vizada yesterday, chasing steadier
sales from high-value services.
The purchase, from private equity
owner Apax France, adds to a string
of deals designed to help the Airbus
parent firm dispose of surplus cash.
Although Vizida is based in Paris, a
contract with the US Army will give
Franco-German EADS an extra toe-
hold in the United States, where
efforts to expand have met mixed
success.
Vizida provides communications
services to 200,000 users in the mar-
itime, aviation and defence sectors
and will become part of EADSs
Astrium space business.
EADS said the deal would boost its
earnings per share and provide sig-
nificant synergies. It did not give a
timeframe or amount.
EADS wants to double the share of
services in its revenues to 25 per cent
and reduce its dependence on Airbus
commercial sales to 50 per cent of
revenues by 2020 from 66 per cent
now.
Apax Partners said the deal
marked its third exit in the telecom
sector in two months following sales
of Prosodie and Outremer Telecom. It
and Vizada were both advised by
UBS.
EADS was advised by Messier
Partners.
BY HARRY BANKS
AEROSPACE

NEWS | IN BRIEF
Rusal lines up $4.75bn loan
UC Rusal, the world's largest alumini-
um producer, said yesterday it had
mandated 12 banks to arrange a loan
of up to $4.75bn (2.9bn). The banks,
including BNP Paribas, WestLB and
ING, will provide Rusals loan to allow
the firm to pay off debts. The interest
rate on the facility will be the three-
month LIBOR plus margin, with the
current margin being 2.35 per cent per
annum. Rusal said the high level of
interest in the deal demonstrated mar-
ket confidence in the company.
Plane production aids Senior
Aero engineer Senior yesterday report-
ed a 17 per cent rise in first-half profit,
helped by a ramp up in production by
its largest plane-making customers
who are seeing continued growth in
demand for commercial aircraft.
Senior, which makes components and
systems for the aerospace, defence,
land vehicle and energy markets, post-
ed an adjusted pre-tax profit of 38m
on revenues 10 per cent higher at
315.6m for the six months to the end
of June.
Seymour Pierce still top for AIM
Stockbroker FinnCap made the biggest
small-cap client gains over the last
three months, taking its tally to 69,
according to the latest Hemscott AIM
advisers data. FinnCap is now just one
client short of clinching the joint lead
spot alongside Seymour Pierce, which
has also retained its crown as the top
nominated adviser despite losing four
clients in the quarter. Law firm
Memery Crystal has taken first place
in the AIM lawyer ratings, stealing the
top spot from Pinsent Masons.
News
13 CITYA.M. 2 AUGUST 2011
HAMMERSON, one of Britains largest
retail landlords, has brushed off chal-
lenges in the retail market, reporting a
1.9 per cent rise in like-for-like sales
across its shopping centres in their
half-year results yesterday.
David Atkins, Hammersons chief
executive, said the group had seen lit-
tle impact from the rise in retailers
going into administration despite the
challenging backdrop.
Pre-tax profit fell by 42.6 per cent to
192.8m, while its property portfolio
grew in value by 2.2 per cent, with a
2.6 per cent rise in footfall across its
UK shopping centres.
The landlord said it is pressing
ahead with 1.1bn worth of near-term
developments after a period of
restrained activity, including two
landmark office buildings at London
Wall Place, which the firm is due to
start building next year.
Hammerson dodges UK
gloom to post sales rise
Hammerson won planning approval for its London Wall Place last month
BY KASMIRA JEFFORD
PROPERTY

ANALYSIS l Macarther Coal Ltd

AU$
26Jul 27Jul 28Jul 29Jul 1 Aug
15.90
15.80
15.70
15.60
15.50
15.83
1 Aug
ANALYSIS l Hiscox Ltd
p
26Jul 27Jul 28Jul 29Jul 1 Aug
394.00
1 Aug 420
415
410
405
400
395
DEBT laden pub company Punch
Taverns completed its demerger yes-
terday as its Spirit business started
trading on the market.
Shares in the slimmed-down Punch
plummeted 80 per cent to 13p, as
Spirit Pub Company ended the day
broadly flat at 52p.
Spirit consists of the better per-
forming managed pub business while
the leasehold section continues to
trade under the Punch Taverns name.
The move has been made to give
Spirit the chance to thrive by not
being saddled with the debt and oper-
ational difficulties afflicting Punch.
However, some analysts have pre-
dicted that the Punch Taverns busi-
ness will be at risk of breaching
covenants.
Citigroup said in a note: We con-
tinue to see covenant breaches as a
key risk and think that the new
group will need to support these vehi-
cles with 40m-45m pa of PLC cash
to prevent this occurrence.
Former Punch chief executive Ian
Dyson is now boss at Spirit, while
Punch Taverns is headed by Roger
Whiteside.
Under the demerger Spirit will
operate 800 pubs while Punch will
look to offload 2,200 premises as it
addresses its 2.3bn debt pile.
Spirit starts
trading after
Punch split
headline sponsor champagne reception sponsor
official venue partner
sponsors
The Square Miles
event of the year.
Book your place for the City A.M. Awards
on Wednesday 21 September at the
Grange St Pauls Hotel, London.
Visit www.CityAMAwards.com
For more information, contact Jo Pead I 020 8267 4043 I [email protected]
BY JOHN DUNNE
LEISURE

News
14 CITYA.M. 2 AUGUST 2011
HORNBY REMAINS ON TRACK THANKS TO CHINA
Toy maker Hornby said
yesterday it was trading
well, with weakness in
Europe being offset by
an improved supply
chain in China.
The company, which is
renowned for its model
railways, said in a trad-
ing update: The effect
of pent-up demand in
Europe, now being satis-
fied by improved sup-
plies from China, and
the positive impact of
incremental sales of
London 2012 merchan-
dise gives us confidence
in the out-turn for the
year.
Picture: Getty
ANALYSIS l Punch Taverns
p
26Jul 27Jul 28Jul 29Jul 1 Aug
80
60
40
20
13.00
1 Aug
NEWS | IN BRIEF
Real Good Food shares dented
Shares in The Real Good Food Co tum-
bled 8.7 per cent yesterday after the
company announced a first-half net debt
increase on the back of rising commodi-
ty costs. The bakery ingredients and
sugar group said overall it had been
trading strongly. In the six months to 24
June, volumes have increased, with over-
all sales rising by 21 per cent to 110m
and earnings before interest, tax, depre-
ciation and amortisation improving from
600,000 at the same point last year to
2.7m. The firms shares, which have tre-
bled in value over the last 12 months,
closed at 66p.
Fidessa trading in line for year
Trading systems developer Fidessa
reported a resilient interim performance
yesterday, despite tough market condi-
tions, and the firm expects full year
results to be in line with expectations.
Adjusted operating profit rose to 21.1m
for the six months ended 30 June from
19.5m a year before. Revenue increased
to 137m from 128.5m a year earlier.
Pre-tax profit climbed to 20.9m, from
19.5m a year before.
Ultra Electronics profits up
British defence company Ultra
Electronics reported a nine per cent rise
in first-half adjusted pre-tax profit yes-
terday, offsetting the impact of spending
constraints in its key UK and US mar-
kets. However, the group expects an
impact on contracts going forward.
Adjusted pre-tax profit between January
and June was 52.1m, compared with
47.6m last year, boosted by acquisi-
tions made in the period.
ANALYST VIEWS: IS SPIRIT A GOOD BUY
AFTER THE PUNCH DEMERGER? By John Dunne

JAMIE ROLLO | MORGAN STANLEY

We initiate on the newly demerged Spirit Pub Company at under-
weight as we see structural reasons for its low margins. Free cash flow genera-
tion is very weak relative to EPS (we do not think it should pay a dividend). Its
exposure to leased pubs makes it less attractive to other parties.

SIMON FRENCH | PANMURE

Following the de-rating of some of its peers over the last few weeks,
we have reduced our fair value estimate for Spirit to 48-62p per share. Our 83p
target price for Punch Taverns was previously predicated on 19p of fair value for
Punch and 64p for Spirit. We recommend a hold.

DANIEL HARRIS | H20 MARKETS

Newly demerged Spirit is likely to attract interest as a potential invest-
ment case, although with nearly half the exposure of group EBITDA to leased
pubs, the upside is likely to be limited, at least until the incoming CFO develops the
group strategy. Meantime we view Spirit shares as a hold.

BRITISH testing firm Intertek posted

a 14 per cent rise in first-half profit
yesterday, as a booming mining
industry in Asia and the Pacific rim
drove strong growth in its commodi-
ties division.
Intertek, which tests products
from toys and clothes to oil and
renewable technology, said its
adjusted pre-tax profit grew to
110.6m on revenues up 17 per cent
at 763.1m in the six months to the
end of June.
The group said it recorded rev-
enue growth across all of its mar-
kets, with sales at its commodities,
commercial and electrical divisions
helping offset a slowdown at its key
consumer unit, which it said would
improve in the second half.
Sales at its commodities unit,
which provides laboratory testing
and technical services to the worlds
energy, petroleum, chemical and
mining industries, grew 12.2 per
cent at constant exchange rates to
251.2m.
Shares in the group, which raised
its interim dividend by 15 per cent,
closed up 3.9 per cent yesterday as
the highest riser in the FTSE 100.
A solid set of results, meeting
expectations with structural growth
drivers intact and some of the head-
winds in the first half likely to
reduce into the second half to offset
tougher comparatives, Goldman
Sachs analyst John Woodman said.
Miners help
Intertek post
higher profits
GERMAN sports car maker Porsche
said its quarterly profits have surged
thanks to demand for luxury cars in
China and North America.
First-half operating profit jumped
37 per cent to 1.07bn (940m), the
company jointly owned by Porsche SE
and Volkswagen said yesterday.
Revenues were up almost 19 per
cent at 5.22bn, implying a first-half
operating margin of just over 20 per
cent, well ahead of rivals BMW and
Mercedes.
Porsche AG sold 47 per cent more
cars in China in the six-month period
than a year earlier, and the Asian
country the worlds biggest car mar-
ket accounted for about a fifth of its
overall sales.
Premium and mass-market carmak-
ers have looked to fast-growing mar-
kets such as China to make up for
sluggish sales growth in Europe,.
First-half sales in North America
were up 25 per cent, Porsche AG said
as it repeated its target for record
worldwide vehicle sales of more than
100,000 this year.
Volkswagen last week forecast a sig-
nificant rise in operating profits this
year, due to surging demand for its
VW and upmarket Audi marques.
Porsche SE is due to report first-half
results today.
BRITISH construction group Keller
posted a 70 per cent drop in its pre-
tax profit for the first half yesterday,
hurt by the floods in Australia and
political unrest in the Middle East
and North Africa.
However, the company, whose
largest market is in the United States,
said several large jobs will lead to a
much stronger second half, and
results for the full year are expected
to be within the current range of mar-
ket expectations.
Keller, which built foundations for
Londons 2012 Olympic Stadium, said
its order book was up 14 per cent.
First-half pre-tax profit fell to 3.4m
from 11.3m last year. Revenue rose
10 per cent to 545.5m.
Analysts, on average, are expecting
the company to post a full-year pre-
tax profit of 36.6m on revenue of
1.1bn.
Porsche boosts
earnings thanks
to China boom
Keller blames Australian
floods for poor first half
Keller said Australian floods had contributed to a large decline in profit Picture: REUTERS
BY HARRY BANKS
INDUSTRY

AUTOMOTIVE

News
CITYA.M. 2 AUGUST 2011
BY HARRY BANKS
CONSTRUCTION

15
ANALYSIS l Intertek
p
26Jul 27Jul 28Jul 29Jul 1 Aug
2,050
2,000
1,950
1,900
1,990
1 Aug
News
16 CITYA.M. 2 AUGUST 2011
Fleming Family & Partners
The wealth management group has
appointed Scott Oliphant and David
Zelouf as senior client relationship
directors in the firms asset manage-
ment business in London. Oliphant and
Zelouf, who will join the firm in
November, specialise in the ultra high
net worth sector, and were most
recently directors of Barclays Wealth.
F&C REIT Asset Management
The direct property fund management
business of the F&C Group has
appointed Chris OConnell as an asset
manager in the London office.
OConnell joins from Invista Real
Estate Investment Management,
where he managed property assets of
1bn as an associate director in the
Industrial Property team.
RBC Wealth Management
Royal Bank of Canadas wealth man-
agement business has appointed Pierre
Sigrist as a director in the private client
fiduciary services team in Dubai. Sigrist
joins from UBS, where he was head of
wealth planning international in
Switzerland, with a focus on the Middle
East, North East and Africa.
Carmignac Gestion
Laurent Ducoin will join the asset man-
ager as head of the European manage-
ment team on 1 October. Ducoin was
most recently panEuropean equities
manager in the European specialist
team at BlackRock in London.
Sirius Petroleum
The independent oil developer has
appointed Ed Johnson as commercial
director to advise the company on its
acquisition strategy, principally in
Nigeria. Johnson joins from
Renaissance Capital, where he was
head of the new markets oil team for
investment banking and financing,
covering all emerging markets outside
Russia and Ukraine.
Wiggin
The media law firm has strengthened
its film and TV team by hiring Neil
Gillard from Reed Smith as a partner to
co-lead the media finance group with
David Quli. In addition, Vickie Cameron,
formerly of Walt Disney Pictures, has
joined the film production team as a
consultant to specialise in motion pic-
ture development and production.
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 slides
on manufacturing
T
HE S&P 500 fell for a sixth day
yesterday as time runs out for
the government to pass a deal
to avoid default and the econo-
my showed further signs of stalling.
The market pared losses late in the
day before Congress was expected to
vote on a debt deal backed by the
White House, which includes spend-
ing cuts of $2.4 trillion over 10 years.
The deadline for a deal, which
includes raising the US borrowing
limit, is midnight tonight.
Its an on-again, off-again mar-
ket, and it reflects the on-again, off-
again nature of these debt ceiling
deliberations, said Hugh Johnson,
chief investment officer of Hugh
Johnson Advisors LLC in Albany, New
York.
Investors now believe that the
debt limit will be raised, that the
vote will be positive in the Senate
and positive in the House, but theres
still a bit of scepticism or caution.
Stocks fell after the Institute for
Supply Management said the US
manufacturing sector grew at the
slowest pace in two years in July. The
ISM report followed similarly weak
reports from much of Asia and
Europe.
The defence and health care sec-
tors, which would be subject to US
budget cuts if a deal is not reached,
were among the hardest hit. The
iShares Dow Jones US aerospace and
defence exchange traded fund fell 1.1
per cent while S&Ps healthcare
index lost 1.7 per cent.
Healthcare stocks also fell after
the Centers for Medicare & Medicaid
Services said on Friday that it will cut
payments to skilled nursing facilities
by 11 per cent.
Kindred Healthcare fell 30 per cent
and Skilled Healthcare lost more
than 43 per cent.
The Dow Jones industrial average
dropped 10.75 points, or 0.09 per
cent, to 12,132.49. The Standard &
Poors 500 Index fell 5.34 points, or
0.41 per cent, to 1,286.94. The Nasdaq
Composite Index lost 11.77 points, or
0.43 per cent, to 2,744.61.
Todays trading has exposed the
market. It apparently was hiding
behind the debt ceiling curtain, but
now that that has been pulled back,
we find that there are other prob-
lems namely, the economy, said
Larry McMillan, president of
McMillan Analysis Corp.
The S&P 500 rallied back above its
200-day after dipping sharply below
that. The level has acted as strong
support over the last two months
and the fact that S&P 500 was able to
rally back above it was a comfort to
investors.
B
RITAINS top share index shed
0.7 per cent yesterday after a
rollercoaster session, with early
strong gains on relief over a
debt deal in Washington wiped out
later by weak ISM data which threw
the spotlight back on a faltering US
economy.
At the close, the FTSE 100 index
was down 40.76 points, or 0.7 per cent
at 5,774.43, having reversed from
triple-digit session highs back above
the 5,900 level.
The UK index tracked a similar
reversal on Wall Street, with the US
blue chip index down one per cent by
Londons close, having opened strong-
ly higher only to be knocked by weak
manufacturing data.
The Institute for Supply
Management (ISM) said growth in the
US manufacturing sector slowed
more than expected in July while new
orders hit their lowest level since
June 2009.
What would not normally be con-
sidered as a particularly major piece
of data .. [caused] sentiment to turn
on a sixpence and ruin all the hard
work achieved by the bulls earlier in
the day, said Angus Campbell, head
of sales, at Capital Spreads.
US-focused plumbing supplies
group Wolseley was a big blue chip
faller, down 3.9 per cent as the data
raised fresh worries about the
strength of the US econonomy.
The focus now is very much on
macroeconomic data and corporate
earnings, both of which we have plen-
ty of, Campbell added, spotlighting
Fridays August US jobs report and
the UK bank reporting season.
Part-nationalised lenders Lloyds
Banking Group and Royal Bank of
Scotland were the top two blue chip
fallers, down 5.0 per cent and 4.3 per
cent respectively, with the duo set to
report numbers later this week.
Overall, however, the UK banking
sector managed modest gains thanks
to strength in global heavyweight
HSBC, up 2.2 per cent after it posted
better-than-expected first-half num-
bers yesterday.
Europes biggest bank rose 4.8 per
cent after unveiling first-half pre-tax
profit of $11.5bn, and as it announced
it will shed 30,000 jobs -- roughly 10
per cent of its workforce.
These results look better than
expected, underlining the attractions
of HSBCs conservative balance sheet,
said Seymour Pierce analyst Bruce
Packard, who reiterated his buy rat-
ing and 800 pence price target on the
stock.
Investors were nervously looking
ahead to a crucial vote in the US
Congress yesterday after a White
House-backed agreement was
reached at the weekend to cut about
$2.4 trillion from the deficit and
avoid a humiliating credit default.
I think the initial US debt accord
news removed part of the uncertainty
in the market, but we still need to get
the votes to pass it, said Paul
Mumford, senior fund manager at
Cavendish.
Defence contractors were big fall-
ers, with Mumford noting worries
about the impact of any potential
cuts in the US military budget from
the deficit reduction plan. Smiths
Group shed 3.2 per cent, with BAE
Systems down three per cent, and
Rolls-Royce off one per cent.
Traders also pointed out that BAE
and Rolls both benefited strongly last
week following well-received results,
while a downgrade in its rating by
Oriel Securities also hit BAE.
Testing firm Intertek, the top FTSE
100 riser, was up 3.9 per cent, and real
estate group Hammersonrose 1.4 per-
cent.
FTSE has a rollercoaster day
as US data undoes debt rally
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to [email protected]
ANALYSIS l Barratt Developments
120
110
100
90
19May 8Jun 28Jun 18Jul
p
93.00
1 Aug
BARRATT DEVELOPMENTS
Goldman Sachs has upgraded the house builder from neutral to buy with
a target price of 159p. The broker has also upgraded rival Persimmon to buy
after reviewing the property sector, and now expects broadly flat new-build
house prices over the next two years, thanks to low build volumes and stable
unemployment. Goldman thinks Barratts margins will rise by two per cent a
year, thanks to its land bank, though returns on properties will be tougher.
ANALYSIS l Vodafone
174
170
166
162
158
19May 8Jun 28Jun 18Jul
p
169.60
1 Aug
VODAFONE
UBS has upgraded the mobile phone group from neutral to buy with a
new target price of 190p, following the firms agreement with partner Verizon
to pay a dividend next January. UBS says the payout is larger and earlier than
it had expected, and predicts that the payments could rise from 2.8bn to
4bn over time, pushing Vodafones free cash flow up to 30 per cent. The bro-
ker also predicts five per cent jump in earnings per share.
ANALYSIS l International Consolidated Airlines
260
250
240
230
220
18May 8Jun 28Jun 18Jul
p 229.70
1 Aug
IAG
Citigroup rates the British Airways parent buy with a target price of 300p.
The broker thinks IAGs recent results were the best of all the European flag
carriers so far this quarter, thanks to passenger revenues rising 9.4 per cent.
While higher costs have dented earnings forecasts, Citi still expects to see
fresh synergies between BA and Iberia and possibly acquisitions, with BMI
and TAP Air Portgual seen as likely takeover candidates.
p
9May 27May 17Jul 7Jul 27Jul
6,100
5,700
5,800
5,900
6,000
ANALYSIS l FTSE
5,774.43
1 Aug
Oracle Coalfields
The mining company, which is developing a
1.4bn tonne coalfield in Pakistans Sindh
Province, has appointed Adrian Loader, the
former president of Shell Canada, as chairman
of the board of directors. Loaders former
board appointments include Alliance-Unichem,
Alliance-Boots and Candax Energy. He is cur-
rently a director of Holcim, a member of the
Garda World International Advisory Board
and a member of the advisory board of Lane,
Clark and Peacock.
P
RESIDENT Obamas deal on debt
pushed gold off its record high, but it
bounced back sharply. Now is not the
time to sell, as over the foreseeable
future the ongoing US and Eurozone debt
crises will see it break new highs.
BOUNCING BACK
On Friday, gold hit a record high of
$1,632.30/oz, but on Monday morning the
yellow metal fell to $1,607.69 in response to
the belated, if largely anticipated, agree-
ment to raise the debt ceiling and begin to
tackle the countrys mammoth structural
budget deficit. However, traders were not
convinced, as they bought in and pushed
gold back up. David Jones of IG Markets
says despite the drop, most traders avoided
getting their fingers burnt, saying: There
will have been a lot more pain over recent
years in trying to call the top, only to see
the metal carry on higher. Angus
Campbell of London Capital Group
explains that many traders have been long
on gold for months and years, so apart
from a few selling to take profits, most
remain long.
THE WESTERN FRONT
Its pretty jittery on the Western front right
now. Simon Smith, chief economist at
FXPro, thinks the agreement is not the best
deal for the US, adding that the issue of a
US downgrade wont go off the agenda. He
points out that the $2.5 trillion of cuts is
less than expected by the ratings agencies,
with the remaining cuts coming before a
committee, which only reports later in the
year. Smith notes: The past year has shown
that Washington has always backed away
from the tough choices on government bor-
rowing and shunned higher taxes, so
unless there is a change in approach on
Capitol Hill, a debt downgrade is still on
the cards.
It is a sign of the times that some of the
Its bounce shows the
yellow metal is still
hot, says Philip Salter
Gold is still showing strength Picture: GETTY
Gold hasnt hit the top
as debt remains a risk
W
E HAD a first look at UK and US second quarter
GDP numbers last week. The US was a shocker,
coming in at 1.3 per cent on expectations of 1.7
per cent. Worse than that, the first quarter of
2011 and the fourth quarter of last year were both revised
down sharply. This means the US economy was slowing
even before the Japanese earthquake and tsunami. For the
UK, quarter-on-quarter growth was virtually non-existent,
and the depressing sub-text was that weve only managed
to clock up a 0.2 per cent increase in GDP over the last nine
months. With base rates still at their all-time low at 0.5 per
cent and with the vast bulk of public spending cuts still to
be implemented, the outlook for UK growth doesnt look
good.
The markets and ratings agencies believe that the UK
government remains committed to controlling public spend-
ing. This should keep a lid on the budget deficit and help to
keep borrowing costs down. The yield on 10-year gilts
dropped below 3 per cent last week, paying investors less
than comparable US Treasuries, despite elevated headline
UK inflation levels. But while the government can take some
credit, falling gilt yields also suggest that investors expect
tepid growth for some time to come. Gilts also outper-
formed US Treasuries as investors became increasingly rat-
tled by the inability of the White House and Congress to
reach a deal on the US debt ceiling.
There is renewed speculation that the Monetary Policy
Committee (MPC) may launch another round of quantita-
tive easing. Many believe that this would help mitigate the
current economic slowdown and offset the chancellors fis-
cal measures. The last set of MPC minutes suggested that
the MPCs interest in further asset purchases has cooled
recently, so events this week will be watched closely. The
MPC announces its rate decision on Thursday and will pro-
vide a fuller insight to its thinking when the quarterly infla-
tion report is released on 10 August.
The speculation over if, or more likely, when, the Federal
Reserve launches a third round of quantitative easing in the
US has died down recently. The US and European debt
crises have helped to drive it off the agenda for now. But
given last weeks GDP numbers, the chance of additional
monetary stimulus from both the Fed and the Bank of
England is likely to be a hot topic in the third quarter.
AMERICA MAY
SAIL ON THE
QE3 THIS FALL
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
clearest and most present dangers are
found in the developed world. Elena
Kolchina, head of fixed income at
Renaissance Asset Managers, says: Today
the global economy is being threatened by
political instability in Washington. And
the Eurozones outlook looks equally dire.
RATIONAL EXUBERANCE
Tom Winnifrith, senior fund manager at
t1ps, predicts gold will hit $2,100 before
Obama faces re-election in November 2012.
He bluntly says: The addict has been given
another big fix. It is still an addict and a
hopeless one at that. Its clear that the
deficit is not under control. Winnifrith
thinks in the absence of an alternative, the
only currency whose value is not being sys-
tematically destroyed by politicians
remains gold.
Golds rebound showed that traders
remain unconvinced that politicians have
saved the day. Many still suggest gold is a
bubble. However, for every gold bug crawl-
ing around the darker recesses of the inter-
net chanting apocalyptically the end is
nigh, there is a highly respected trader bet-
ting the same way. Those calling a bubble
on gold have their heads buried deep in the
sand, ignoring the US and Eurozone debt
crises which have been decades if not
longer in the making. The West might
turn it around but not for a while. Until
then gold will be the best bet in town.
17 CITYA.M. 2 AUGUST 2011
Wealth Management| Contracts for Difference
LON GD ONCE FIX AM...........1613.50 -0.25
SILVER LDN FIX AM..................39.84 -0.10
MAPLE LEAF 1 OZ ....................72.50 -0.50
LON PLATINUM AM ...............1796.00 14.00
LON PALLADIUM AM...............840.00 13.00
ALUMINIUM CASH .................2580.00 -20.00
COPPER CASH ......................9730.00 -13.50
LEAD CASH...........................2613.00 -66.50
NICKEL CASH......................24490.00 125.00
TIN CASH.............................28145.00 -580.00
ZINC CASH ............................2465.00 -14.00
BRENT SPOT INDEX................116.77 -1.26
SOYA.....................................1354.25 0.00
COCOA..................................2974.00 0.00
COFFEE...................................239.55 0.00
KRUG.....................................1680.80 -2.00
WHEAT ....................................163.68 -0.17
AIR LIQUIDE........................................95.02 -0.93 100.65 80.00
ALLIANZ..............................................88.82 -2.24 108.85 79.46
ALSTOM..............................................35.44 -1.32 45.32 30.78
ANHEUS-BUSCH INBEV ....................40.00 -0.20 46.33 38.32
ARCELORMITTAL ..............................21.27 -0.54 28.55 20.76
AXA......................................................12.81 -0.31 16.16 10.88
BANCO SANTANDER...........................6.94 -0.25 10.19 6.94
BASF SE..............................................61.21 -2.01 70.22 40.74
BAYER.................................................54.07 -1.86 59.44 43.27
BBVA.....................................................7.00 -0.35 10.71 6.75
BMW ....................................................67.71 -2.11 73.85 39.96
BNP PARIBAS.....................................43.68 -1.79 59.93 43.42
CARREFOUR ......................................20.08 -0.52 36.06 20.00
CREDIT AGRICOLE..............................8.28 -0.34 12.92 8.18
CRH PLC .............................................12.87 -0.83 17.40 11.51
DAIMLER.............................................49.01 -1.66 59.09 37.03
DANONE..............................................49.17 -0.64 53.16 41.00
DEUTSCHE BANK..............................37.00 -1.52 51.61 35.66
DEUTSCHE TELEKOM.......................10.43 -0.41 11.38 9.50
E.ON.....................................................18.63 -0.59 25.54 18.18
ENEL......................................................3.87 -0.15 4.86 3.60
ENI .......................................................14.74 -0.44 18.66 14.60
FRANCE TELECOM............................14.13 -0.31 17.45 13.56
GDF SUEZ ...........................................22.04 -0.79 30.05 22.02
GENERALI ASS. .................................12.78 -0.48 17.05 12.18
IBERDROLA..........................................5.50 -0.17 6.50 5.08
ING GROEP CVA ..................................7.42 -0.10 9.50 6.59
INTESA SANPAOLO.............................1.49 -0.13 2.53 1.41
KON.PHILIPS ELECTR.......................16.99 -0.37 25.45 15.56
L'OREAL..............................................82.95 -1.06 91.24 75.03
LVMH.................................................127.30 -0.65 132.65 89.12
MUNICH RE.......................................101.00 -2.05 126.00 98.43
NOKIA....................................................3.89 -0.17 8.49 3.79
REPSOL YPF.......................................21.35 -0.68 24.90 17.31
RWE.....................................................35.53 -1.02 56.49 34.77
SAINT-GOBAIN...................................38.91 -1.50 47.64 27.81
SANOFI ................................................52.90 -1.39 56.82 44.01
SAP......................................................42.77 -0.88 46.15 34.13
SCHNEIDER ELECTRIC...................100.05 -1.10 123.65 81.40
SIEMENS .............................................86.01 -3.37 99.39 70.02
SOCIETE GENERALE.........................33.31 -1.43 52.70 32.76
TELECOM ITALIA.................................0.84 -0.04 1.16 0.80
TELEFONICA ......................................15.28 -0.28 19.69 15.07
TOTAL .................................................37.08 -0.71 44.55 36.23
UNIBAIL-RODAMCO SE...................153.60 -1.80 162.95 125.68
UNICREDIT............................................1.20 -0.05 2.24 1.06
UNILEVER CVA...................................22.42 -0.23 24.08 20.68
VINCI ....................................................39.16 -1.36 45.48 33.38
VIVENDI ...............................................16.38 -0.33 22.07 16.33
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5774.43 -40.76 -0.70
FTSE 250 INDEX . . . . . . . 11426.09 -125.97 -1.09
FTSE UK ALL SHARE . . . . 3004.50 -21.52 -0.71
FTSE AIM ALL SH . . . . . . . . 862.75 -2.32 -0.27
DOWJONES INDUS 30 . . 12132.49 -10.75 -0.09
S&P 500 . . . . . . . . . . . . . . . 1286.94 -5.34 -0.41
NASDAQ COMPOSITE . . . 2744.61 -11.77 -0.43
FTSEUROFIRST 300 . . . . . 1067.97 -14.15 -1.31
NIKKEI 225 AVERAGE. . . . 9965.01 131.98 1.34
DAX 30 PERFORMANCE. . 6953.98 -204.79 -2.86
CAC 40 . . . . . . . . . . . . . . . . 3588.05 -84.72 -2.31
SHANGHAI SE INDEX . . . . 2703.78 2.05 0.08
HANG SENG. . . . . . . . . . . 22663.37 223.12 0.99
S&P/ASX 20 INDEX . . . . . . 2686.80 42.50 1.61
ASX ALL ORDINARIES . . . 4573.10 72.60 1.61
BOVESPA SAO PAOLO . 58539.30 -284.15 -0.48
ISEQ OVERALL INDEX . . . 2756.84 -64.44 -2.28
STI . . . . . . . . . . . . . . . . . . . . 3215.27 26.01 0.82
IGBM. . . . . . . . . . . . . . . . . . . 941.23 -32.07 -3.29
SWISS MARKET INDEX. . . 5783.35 -88.06 -1.50
Price Chg %chg
3M........................................................86.77 -0.37 98.19 78.40
ABBOTT LABS ...................................50.47 -0.85 54.24 45.07
ALCOA ................................................14.75 0.02 18.47 9.92
ALTRIA GROUP..................................26.15 -0.15 28.13 21.82
AMAZON.COM..................................221.32 -1.20 227.45 114.51
AMERICAN EXPRESS........................50.02 -0.02 53.80 37.33
AMGEN INC.........................................53.77 -0.93 61.53 50.34
APPLE...............................................396.75 6.27 404.50 236.78
AT&T....................................................29.52 0.26 31.94 25.79
BANK OF AMERICA.............................9.81 0.10 15.31 9.40
BERKSHIRE HATAW B......................74.93 0.76 87.65 73.23
BOEING CO.........................................70.33 -0.14 80.65 59.48
BRISTOL MYERS SQUI......................28.55 -0.11 29.73 20.05
CATERPILLAR..................................100.72 1.93 116.55 63.34
CHEVRON.........................................105.38 1.36 109.94 72.57
CISCO SYSTEMS................................15.83 -0.14 26.00 14.78
CITIGROUP.........................................38.48 0.14 51.50 36.30
COCA-COLA.......................................67.73 -0.28 69.82 54.43
COLGATE PALMOLIVE......................84.02 -0.36 89.43 73.12
CONOCOPHILLIPS.............................71.99 0.00 81.80 52.00
DU PONT(EI) DE NMR........................51.55 0.13 57.00 38.71
EMC CORP..........................................26.08 0.00 28.73 17.90
EXXON MOBIL....................................79.60 -0.19 88.23 58.05
GENERAL ELECTRIC.........................17.97 0.06 21.65 14.25
GOLDMAN SACHS GRP..................134.15 -0.85 175.34 125.50
GOOGLE A........................................606.77 3.08 642.96 448.00
HEWLETT PACKARD.........................35.20 0.03 49.39 33.95
HOME DEPOT.....................................34.25 -0.68 39.38 27.10
IBM.....................................................180.75 -1.10 185.63 122.28
INTEL CORP .......................................22.24 -0.09 26.78 17.60
J.P.MORGAN CHASE.........................40.44 -0.01 48.36 35.55
JOHNSON & JOHNSON.....................64.43 -0.36 68.05 56.99
KRAFT FOODS A................................34.34 -0.04 36.02 24.30
MC DONALD'S CORP ........................86.39 -0.09 89.57 68.59
MERCK AND CO. NEW......................33.44 -0.69 37.68 31.06
MICROSOFT........................................27.27 -0.13 29.46 23.32
OCCID. PETROLEUM.........................97.78 -0.40 117.89 72.13
ORACLE CORP...................................30.11 -0.47 36.50 21.66
PEPSICO.............................................63.86 -0.18 71.89 62.05
PFIZER ................................................19.02 -0.23 21.45 14.88
PHILIP MORRIS INTL.........................70.72 -0.45 72.74 50.54
PROCTER AND GAMBLE..................61.43 -0.06 67.72 56.57
QUALCOMM INC ................................54.12 -0.66 59.84 37.54
SCHLUMBERGER ..............................90.21 -0.16 95.64 52.91
TRAVELERS CIES..............................54.61 -0.52 64.17 48.46
UNITED TECHNOLOGIE ....................82.34 -0.50 91.83 64.57
VERIZON COMMS ..............................35.87 0.58 38.95 28.61
WAL-MART STORES..........................52.62 -0.09 57.90 50.00
WALT DISNEY CO..............................38.44 -0.18 44.34 31.55
WELLS FARGO & CO.........................27.93 -0.01 34.25 23.02
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 ..................0.863 0.01
LIBOR Euro - 12 months ................2.166 -0.01
LIBOR USD - overnight...................0.127 0.00
LIBOR USD - 12 months.................0.759 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 .........................4.070 -0.60
European repo rate.........................0.836 0.00
Euro Euribor ....................................1.194 -0.02
The vix index ...................................24.50 -0.40
The baItic dry index ........................1.264 -0.02
Markit iBoxx...................................225.10 -0.51
Markit iTraxx..................................116.48 0.58
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
6/$ 1.4241 0.0134
6/ 0.8748 0.0005
6/ 109.92 0.9100
/6 1.1431 0.0005
/$ 1.6281 0.0163
/ 125.69 1.0600
FTSE 100
5774.43
-40.76
FTSE 250
11426.09
-125.97
FTSE ALL SHARE
3004.50
-21.52
DOW
12132.49
-10.75
NASDAQ
2744.61
-11.77
S&P 500
1286.94
-5.34
RPC Group . . . . . . . .359.8 3.0 363.0 355.3
Smiths Group . . . . .1099.0 -36.0 1154.0 1096.0
Brown (N.) Group . . .280.4 -4.6 287.1 279.5
Carpetright . . . . . . . . .585.0 -5.0 590.2 585.0
Debenhams . . . . . . . . .65.9 -0.9 68.1 65.8
Dignity . . . . . . . . . . . .791.5 -8.5 809.3 785.5
Dixons RetaiI . . . . . . .13.8 -0.4 14.7 13.7
DuneImGroup . . . . . .463.3 -6.7 480.0 461.3
HaIfords Group . . . . .313.1 -9.6 327.6 312.3
Home RetaiI Group . .128.8 -6.8 137.5 128.6
Inchcape . . . . . . . . . .379.1 -10.3 396.1 378.8
JD Sports Fashion . .938.5 -20.5 972.5 937.0
Kesa EIectricaIs . . . .127.7 -2.9 132.6 126.2
Kingfisher . . . . . . . . .248.1 -4.6 256.9 248.1
Marks & Spencer G . .339.1 -7.1 351.2 337.2
Mothercare . . . . . . . .400.5 -6.6 409.3 397.1
Next . . . . . . . . . . . . .2336.0 -39.0 2405.0 2302.0
Sports Direct Int . . . .255.0 -10.9 270.0 251.0
WH Smith . . . . . . . . . .509.5 2.0 526.0 507.7
Smith & Nephew . . . .629.5 -11.5 649.5 629.0
Synergy HeaIth . . . . .950.0 0.0 958.5 944.0
Barratt DeveIopme . . .93.0 -5.5 103.9 91.3
BeIIway . . . . . . . . . . . .668.0 8.0 684.0 665.0
YuIe Catto & Co . . . . .209.4 -3.6 219.7 207.0
BaIfour Beatty . . . . . .293.3 -10.3 307.2 293.3
KeIIer Group . . . . . . .447.7 -1.9 460.0 445.8
Kier Group . . . . . . . .1315.0 -14.0 1355.0 1305.0
Drax Group . . . . . . . .529.0 -6.0 541.0 528.0
Scottish & Southe . .1288.0 -19.0 1318.0 1287.0
Domino Printing S . .653.0 -11.0 667.0 646.0
HaIma . . . . . . . . . . . . .395.5 -9.5 413.8 386.7
Laird . . . . . . . . . . . . . .159.8 -27.9 175.6 147.6
Morgan CrucibIe C . .322.7 -6.3 333.9 322.2
Renishaw . . . . . . . . .1673.0 -10.0 1700.0 1652.0
Spectris . . . . . . . . . .1582.0 12.0 1612.0 1561.0
Aberforth SmaIIer . . .682.0 -11.0 697.0 682.0
AIIiance Trust . . . . . .371.0 0.2 377.5 370.2
Bankers Inv Trust . . .403.0 -3.0 413.0 403.0
BH GIobaI Ltd. GB .1118.0 -3.0 1122.0 1118.0
BH GIobaI Ltd. US . . . .11.0 0.0 11.1 11.0
BH Macro Ltd. EUR . . .17.4 0.0 17.5 17.4
BH Macro Ltd. GBP 1777.0 6.0 1791.0 1773.0
BH Macro Ltd. USD . . .17.1 0.0 17.3 17.1
BIackRock WorId M .764.5 4.5 776.0 760.0
BIueCrest AIIBIue . . .172.5 0.5 173.2 172.0
British Assets Tr . . . .130.0 0.7 133.0 129.5
British Empire Se . . .509.5 -0.5 518.3 509.0
CaIedonia Investm .1657.0 -22.0 1723.0 1657.0
City of London In . . .289.8 -3.2 296.0 288.0
Dexion AbsoIute L . .142.4 0.1 143.9 142.4
Edinburgh Dragon . .240.1 0.6 242.9 238.8
Edinburgh Inv Tru . . .461.5 0.4 470.0 461.0
EIectra Private E . . .1657.0 6.0 1676.0 1652.0
F&C Inv Trust . . . . . .309.9 -0.7 317.0 307.2
FideIity China Sp . . . . .94.8 -0.2 96.6 94.2
FideIity European . .1170.0 -3.0 1197.8 1157.0
FideIity SpeciaI . . . . .539.0 -2.0 553.5 538.5
HeraId Inv Trust . . . .515.0 5.0 519.5 513.5
HICL Infrastructu . . .115.0 0.0 115.4 114.8
Impax Environment .114.1 -1.6 117.0 114.1
JPMorgan American .845.5 -2.5 862.5 841.0
JPMorgan Asian In . .239.3 5.1 240.0 236.0
JPMorgan Emerging .575.5 5.5 581.5 575.0
JPMorgan European .886.0 -10.0 906.0 881.5
JPMorgan Indian I . . .415.0 4.4 418.0 408.9
JPMorgan Russian .663.0 16.0 664.9 655.7
Law Debenture Cor . .368.2 -3.3 378.0 368.2
MercantiIe Inv Tr . . .1030.0 -12.0 1057.0 1025.0
Merchants Trust . . . .395.4 -2.6 407.0 395.3
Monks Inv Trust . . . .336.3 -4.2 345.3 336.0
Murray Income Tru . .640.0 -8.0 655.8 635.0
Murray Internatio . . .940.5 0.5 958.5 940.0
PerpetuaI Income . . .262.7 0.7 269.6 262.2
PoIar Cap TechnoI . .347.5 -1.3 353.7 347.5
RIT CapitaI Partn . . .1276.0 -4.0 1307.6 1275.0
Scottish Inv Trus . . . .494.0 1.0 500.0 488.0
Scottish Mortgage . .730.0 -1.0 746.0 730.0
SVG CapitaI . . . . . . . .271.0 7.6 271.0 263.5
TempIe Bar Inv Tr . . .891.5 -5.5 912.5 887.0
TempIeton Emergin .656.0 5.0 666.5 653.0
TR Property Inv T . . .190.0 0.3 193.0 188.9
TR Property Inv T . . . .88.0 -0.5 91.1 88.0
Witan Inv Trust . . . . .498.0 -1.9 509.0495.63i
Group . . . . . . . . . . . . .262.5 -5.8 273.1 261.9
3i Infrastructure . . . .120.5 -0.3 121.4 120.5
Aberdeen Asset Ma .221.4 0.9 224.0 219.7
Ashmore Group . . . .405.5 2.2 411.9 403.5
Brewin DoIphin Ho . .147.1 -1.4 151.0 146.0
CameIIia . . . . . . . . . .9900.0 75.5 9900.0 9800.0
CharIes TayIor Co . . .147.0 2.5 147.5 147.0
City of London Gr . . . .78.0 0.0 78.5 78.0
City of London In . . .412.0 -6.0 418.8 412.0
CIose Brothers Gr . . .727.5 -16.5 758.8 727.5
CoIIins Stewart H . . . .75.0 1.3 75.0 73.8
EvoIution Group . . . . .78.5 0.5 78.5 76.3
F&C Asset Managem .70.3 -0.2 71.0 68.5
Hargreaves Lansdo .580.0 10.0 589.5 570.3
HeIphire Group . . . . . . .2.9 0.0 3.0 2.9
Henderson Group . . .161.9 1.8 163.7 159.8
Highway CapitaI . . . . .17.5 0.0 17.5 17.5
ICAP . . . . . . . . . . . . . .441.7 -6.1 455.7 439.3
IG Group HoIdings . .444.0 1.4 449.7 441.1
Intermediate Capi . . .262.2 -4.1 271.0 259.7
InternationaI Per . . . .314.0 -1.2 323.9 313.5
InternationaI Pub . . .116.9 0.1 117.3 116.5
Investec . . . . . . . . . . .470.8 -9.9 486.1 468.9
IP Group . . . . . . . . . . . .47.9 1.9 48.0 47.8
Jupiter Fund Mana . .230.4 -3.1 239.3 227.5
Liontrust Asset M . . . .73.0 0.4 73.9 73.0
LMS CapitaI . . . . . . . . .62.8 -0.8 63.0 62.8
London Finance & . . .22.0 0.0 22.0 22.0
London Stock Exch .992.0 -5.0 1010.0 984.5
Lonrho . . . . . . . . . . . . .17.5 -0.5 18.0 17.3
Man Group . . . . . . . . .218.6 -4.2 227.1 217.5
Paragon Group Of . .193.4 0.1 197.7 191.5
Provident Financi . .1104.0 -12.0 1125.9 1089.9
Rathbone Brothers .1150.0 2.0 1156.0 1125.0
Record . . . . . . . . . . . . .31.8 -0.3 31.8 31.5
RSM Tenon Group . . .29.5 -1.0 30.5 29.5
Schroders . . . . . . . .1635.0 7.0 1663.0 1617.0
Schroders (Non-Vo .1337.0 -6.0 1368.0 1336.0
TuIIett Prebon . . . . . .342.5 -11.7 358.8 341.4
WaIker Crips Grou . . .51.5 0.0 51.5 51.5
BT Group . . . . . . . . . .200.0 -1.0 206.1 198.5
CabIe & WireIess . . . .36.9 -0.1 38.0 36.5
CabIe & WireIess . . . .40.9 -1.0 42.2 40.8
COLT Group SA . . . .121.4 -0.4 122.0 119.4
TaIkTaIk TeIecom . . .144.7 2.2 145.8 141.0
TeIecomPIus . . . . . . .688.0 -2.0 689.0 670.0
Booker Group . . . . . . .73.9 0.1 74.4 73.5
Greggs . . . . . . . . . . . .518.0 8.0 533.5 510.2
Morrison (Wm) Sup .287.9 -3.0 294.3 285.4
Ocado Group . . . . . . .158.6 -11.7 173.1 158.6
Sainsbury (J) . . . . . . .301.8 -2.3 309.3 301.0
Tesco . . . . . . . . . . . . .380.9 -2.6 388.1 379.4
Associated Britis . .1071.0 0.0 1091.0 1068.0
Cranswick . . . . . . . . .620.5 -23.5 655.0 620.5
Dairy Crest Group . . .365.6 -9.9 380.3 360.7
Devro . . . . . . . . . . . . .253.0 -5.6 259.9 253.0
Premier Foods . . . . . . .17.2 -1.0 18.9 17.0
Tate & LyIe . . . . . . . . .610.0 0.5 617.8 606.5
UniIever . . . . . . . . . .1930.0 -18.0 1988.0 1930.0
Mondi . . . . . . . . . . . . .583.5 -15.5 615.0 583.5
Centrica . . . . . . . . . . .303.3 -3.3 309.4 302.6
InternationaI Pow . . .303.8 -1.9 310.5 303.5
NationaI Grid . . . . . . .590.5 -6.5 603.5 590.5
Northumbrian Wate .449.4 -2.2 455.2 449.4
Pennon Group . . . . . .714.0 -10.5 729.5 713.5
Severn Trent . . . . . .1416.0 -15.0 1450.0 1416.0
United UtiIities . . . . .584.5 -4.0 594.0 583.0
Cookson Group . . . . .632.0 -12.0 661.0 628.0
DS Smith . . . . . . . . . .233.2 -2.4 239.7 233.2
Rexam . . . . . . . . . . . .363.4 -8.1 377.2 363.4
GIencore Internat . . .473.1 -2.7 482.5
470.8BAE Systems . .295.0 -9.0 306.7 293.5
Chemring Group . . . .546.0 -3.5 555.0 539.5
Cobham . . . . . . . . . . .194.5 -9.2 206.5 193.7
Meggitt . . . . . . . . . . . .386.6 -1.7 395.7 382.6
QinetiQ Group . . . . . .111.5 -1.5 114.8 110.5
RoIIs-Royce Group . .646.0 -6.5 662.0 641.0
Senior . . . . . . . . . . . . .186.0 -0.2 189.8 185.0
UItra EIectronics . . .1570.0 -3.0 1637.0 1548.0
GKN . . . . . . . . . . . . . .227.7 3.0 231.8 225.9
BarcIays . . . . . . . . . . .217.0 -6.0 231.2 217.0
HSBC HoIdings . . . . .607.5 13.0 624.9 594.8
LIoyds Banking Gr . . .41.2 -2.2 44.8 41.1
RoyaI Bank of Sco . . .34.2 -1.5 37.1 33.9
Standard Chartere .1551.0 -7.0 1597.5 1534.5
AG Barr . . . . . . . . . .1231.0 -43.0 1293.0 1231.0
Britvic . . . . . . . . . . . . .343.9 -7.0 356.6 342.7
Diageo . . . . . . . . . . .1237.0 -8.0 1265.0 1235.0
SABMiIIer . . . . . . . . .2278.5 -6.5 2328.5 2269.0
AZ EIectronic Mat . . .266.3 1.9 276.0 263.0
Croda Internation . .1883.0 -23.0 1937.0 1883.0
EIementis . . . . . . . . . .161.0 -1.8 166.4 159.6
Johnson Matthey . .2023.0 -17.0 2077.0 2023.0
Victrex . . . . . . . . . . .1456.0 -3.0 1480.0 1445.0
Price Chg High Low
BerkeIey Group Ho .1219.0 -14.0 1258.0 1211.0
Bovis Homes Group .407.4 -5.0 430.0 407.4
Persimmon . . . . . . . .445.8 -16.0 472.4 445.8
Reckitt Benckiser . .3447.0 -10.0 3529.0 3431.0
Redrow . . . . . . . . . . . .130.0 1.6 130.8 127.8
TayIor Wimpey . . . . . .34.4 -1.0 36.8 34.0
Bodycote . . . . . . . . . .385.7 0.3 398.8 379.7
Charter Internati . . . .798.5 -1.5 812.5 796.5
Fenner . . . . . . . . . . . .389.8 2.1 397.2 387.5
IMI . . . . . . . . . . . . . . .1042.0 -8.0 1067.0 1027.0
MeIrose . . . . . . . . . . .353.5 -3.7 361.4 350.0
Northgate . . . . . . . . . .303.8 -3.5 311.9 302.8
Rotork . . . . . . . . . . .1568.0 -18.0 1631.0 1560.0
Spirax-Sarco Engi . .1866.0 -11.0 1907.0 1855.0
Weir Group . . . . . . .2086.0 -36.0 2184.0 2086.0
Ferrexpo . . . . . . . . . . .454.0 -8.5 472.1 451.2
TaIvivaara Mining . . .408.3 -21.3 449.4 405.6
BBA Aviation . . . . . . .204.9 -6.5 213.3 200.1
Stobart Group Ltd . . .137.1 -1.1 143.1 137.0
AdmiraI Group . . . . .1536.0 -13.0 1560.0 1521.0
AmIin . . . . . . . . . . . . .400.2 -2.9 408.2 399.9
Huntsworth . . . . . . . . .68.8 0.8 69.0 68.8
Informa . . . . . . . . . . . .398.0 -6.0 413.7 397.3
ITE Group . . . . . . . . . .219.1 -5.2 227.8 216.3
ITV . . . . . . . . . . . . . . . . .68.8 -1.2 72.7 68.7
Johnston Press . . . . . . .5.0 -0.3 5.5 5.0
MecomGroup . . . . . .237.0 -5.0 246.0 235.3
Moneysupermarket. .111.9 -2.3 116.5 109.8
Pearson . . . . . . . . . .1180.0 6.0 1195.0 1170.0
PerformGroup . . . . .175.0 0.0 177.3 173.0
Reed EIsevier . . . . . .538.5 -15.5 560.5 536.5
Rightmove . . . . . . . .1201.0 -21.0 1248.0 1201.0
STV Group . . . . . . . . .126.4 -0.5 126.4 126.0
Tarsus Group . . . . . .156.5 -0.5 156.5 155.5
Trinity Mirror . . . . . . . .42.3 -1.8 45.8 42.3
United Business M . .530.5 -10.5 555.0 529.0
UTV Media . . . . . . . . .122.0 -4.6 126.0 122.0
WiImington Group . .107.8 -3.3 113.3 106.5
WPP . . . . . . . . . . . . . .686.5 -8.0 709.0 684.5
YeII Group . . . . . . . . . . .6.7 -0.1 6.9 6.6
African Barrick G . . .500.5 -28.0 531.0 493.1
AngIo American . . .2870.5 -29.5 2968.0 2870.5
AngIo Pacific Gro . . .313.4 -6.6 320.5 313.1
Antofagasta . . . . . . .1380.0 -30.0 1448.0 1372.0
Aquarius PIatinum . .280.8 -4.4 293.0 279.5
BHP BiIIiton . . . . . . .2258.0 -15.0 2330.0 2258.0
BeazIey . . . . . . . . . . . .127.3 -2.1 130.7 127.2
CatIin Group Ltd. . . .407.2 -7.2 420.6 405.7
Hiscox Ltd. . . . . . . . . .394.0 -13.5 416.3 394.0
Jardine LIoyd Tho . . .644.0 0.5 656.5 644.0
Lancashire HoIdin . . .698.5 -0.5 704.5 693.0
RSA Insurance Gro . .131.3 -0.2 133.5 130.4
Aviva . . . . . . . . . . . . .395.9 -2.9 410.7 393.5
LegaI & GeneraI G . . .111.2 -1.0 114.6 110.7
OId MutuaI . . . . . . . . .127.3 0.2 130.0 127.0
Phoenix Group HoI . .567.0 -1.0 582.3 562.5
PrudentiaI . . . . . . . . .680.0 -10.0 706.9 674.5
ResoIution Ltd. . . . . .272.0 -4.2 280.9 270.4
St James's PIace . . . .376.0 6.0 382.2 370.2
Standard Life . . . . . . .195.2 -2.9 201.3 195.2
4Imprint Group . . . . .275.0 0.0 275.0 268.0
Aegis Group . . . . . . .153.9 -1.1 158.3 153.6
BIoomsbury PubIis . .108.8 -6.3 116.7 107.8
British Sky Broad . . .695.5 -16.5 718.5 695.0
Centaur Media . . . . . . .51.3 -0.5 52.0 51.3
Chime Communicati .252.5 -0.5 257.0 252.5
Creston . . . . . . . . . . .104.0 -2.0 107.0 103.0
DaiIy MaiI and Ge . . .405.4 -5.5 418.5 404.5
Euromoney Institu . .677.5 -4.5 689.5 677.5
Future . . . . . . . . . . . . . .12.8 -0.1 12.8 12.8
Haynes PubIishing . .255.0 0.0 255.0 255.0
Centamin Egypt Lt . .137.8 1.9 138.2 135.4
Eurasian NaturaI . . .757.0 -15.5 795.0 754.0
FresniIIo . . . . . . . . . .1734.0 -26.0 1782.0 1730.0
GemDiamonds Ltd. .224.4 -8.6 237.8 224.1
HochschiId Mining . .475.0 -4.7 497.9 471.9
Kazakhmys . . . . . . .1313.0 -35.0 1385.0 1311.0
Kenmare Resources . .54.8 -0.7 56.6 54.5
Lonmin . . . . . . . . . . .1240.0 -30.0 1301.0 1237.0
New WorId Resourc .798.0 -1.0 829.0 792.0
PetropavIovsk . . . . . .777.5 -22.0 809.0 776.0
RandgoId Resource 5535.0 -20.0 5595.0 5490.0
Rio Tinto . . . . . . . . .4281.5 -18.5 4408.0 4280.0
Vedanta Resources 1720.0 -50.0 1833.0 1706.0
Xstrata . . . . . . . . . . .1281.0 -14.5 1335.0 1271.0
Inmarsat . . . . . . . . . . .530.5 -9.5 545.5 527.5
Vodafone Group . . . .169.6 -2.4 175.6 167.6
Genesis Emerging . .505.0 0.5 521.5 505.0
Afren . . . . . . . . . . . . . .141.8 1.5 145.3 139.3
BG Group . . . . . . . . .1435.0 -9.0 1478.0 1425.0
BP . . . . . . . . . . . . . . . .458.0 -3.0 468.0 455.8
Cairn Energy . . . . . . .363.8 -6.0 376.2 362.6
EnQuest . . . . . . . . . . .124.9 -0.1 127.3 124.0
Essar Energy . . . . . .357.0 -3.5 369.7 355.8
ExiIIon Energy . . . . . .424.1 -0.9 427.8 415.2
Heritage OiI . . . . . . . .253.8 -4.5 262.5 252.8
JKX OiI & Gas . . . . . .238.8 -0.1 246.2 234.1
Premier OiI . . . . . . . . .413.0 7.0 420.8 406.2
RoyaI Dutch SheII . .2219.0 -15.5 2269.5 2211.5
RoyaI Dutch SheII . .2228.5 -11.0 2279.0 2218.5
SaIamander Energy .277.7 -2.4 282.6 276.6
Soco Internationa . . .368.8 4.8 382.0 364.0
TuIIow OiI . . . . . . . . .1244.0 14.0 1273.0 1230.6
Amec . . . . . . . . . . . .1054.0 0.0 1070.0 1053.0
Hunting . . . . . . . . . . .781.0 0.0 797.2 778.5
John Wood Group . .666.0 -2.5 684.0 662.0
LampreII . . . . . . . . . . .387.4 3.5 390.0 371.1
Petrofac Ltd. . . . . . .1399.0 -2.0 1435.0 1398.0
Burberry Group . . . .1470.0 -24.0 1531.0 1459.0
PZ Cussons . . . . . . . .375.0 -2.5 379.1 370.0
Supergroup . . . . . . .1013.0 -52.0 1105.0 1005.0
AstraZeneca . . . . . .2950.5 -22.5 3040.5 2948.0
BTG . . . . . . . . . . . . . .285.0 4.4 286.7 279.7
Genus . . . . . . . . . . . . .973.5 0.0 983.5 970.8
GIaxoSmithKIine . . .1353.5 -10.5 1375.5 1347.5
Hikma Pharmaceuti .680.5 -2.5 702.0 680.5
Shire PIc . . . . . . . . . .2099.0 -20.0 2145.0 2088.0
CapitaI & Countie . . .190.2 2.3 192.3 188.0
Daejan HoIdings . . .2836.0 40.0 2836.0 2760.0
F&C CommerciaI Pr .105.3 1.7 105.4 103.9
Grainger . . . . . . . . . . .115.5 -2.1 118.9 114.5
London & Stamford .129.0 2.2 129.4 126.4
SaviIIs . . . . . . . . . . . . .340.7 2.3 343.6 336.4
St. Modwen Proper . .177.5 4.4 179.8 171.0
UK CommerciaI Pro . .81.3 2.0 81.3 79.7
Unite Group . . . . . . . .213.5 2.0 218.9 208.7
Big YeIIow Group . . .288.2 1.3 290.0 283.0
British Land Co . . . . .582.0 -3.0 596.5 578.0
CapitaI Shopping . . .373.3 -0.1 383.9 370.2
Derwent London . . .1801.0 5.0 1837.0 1789.0
Great PortIand Es . . .417.0 0.8 428.0 413.2
Hammerson . . . . . . . .472.5 6.7 481.5 470.0
Hansteen HoIdings . . .83.2 1.0 85.0 83.0
Land Securities G . . .854.0 -1.0 871.0 846.5
SEGRO . . . . . . . . . . . .301.7 -0.3 307.6 299.4
Shaftesbury . . . . . . . .513.0 1.5 518.5 507.5
Autonomy Corporat 1664.0 -17.0 1713.0 1664.0
Aveva Group . . . . . .1686.0 -19.0 1733.0 1682.0
Computacenter . . . . .475.1 -14.9 490.2 467.9
Fidessa Group . . . . .1737.0 -99.0 1878.0 1737.0
Invensys . . . . . . . . . . .303.4 -5.3 313.9 302.9
Kofax . . . . . . . . . . . . .333.0 -29.0 370.2 326.7
Logica . . . . . . . . . . . .115.1 -1.5 118.1 114.1
Micro Focus Inter . . .290.0 0.0 297.6 285.8
Misys . . . . . . . . . . . . .386.0 -10.0 397.0 386.0
Sage Group . . . . . . . .270.0 -4.4 277.9 268.4
SDL . . . . . . . . . . . . . . .670.5 -7.5 680.0 669.0
TeIecity Group . . . . . .559.5 6.5 579.5 552.5
Aggreko . . . . . . . . . .1903.0 -30.0 1966.0 1902.0
Ashtead Group . . . . .152.2 -8.2 164.4 150.9
Atkins (WS) . . . . . . . .700.0 -11.0 719.0 698.0
Babcock Internati . . .672.0 -2.5 682.5 667.0
Berendsen . . . . . . . . .540.0 -0.5 550.5 537.0
BunzI . . . . . . . . . . . . .764.0 -7.5 790.0 764.0
Capita Group . . . . . . .722.0 4.0 730.0 717.5
CariIIion . . . . . . . . . . .357.5 -9.3 374.7 355.5
De La Rue . . . . . . . . .775.0 -5.5 801.5 771.5
EIectrocomponents .228.7 -3.7 236.8 227.8
Experian . . . . . . . . . . .788.0 -14.5 815.5 786.6
FiItrona PLC . . . . . . . .347.1 5.7 349.6 341.6
G4S . . . . . . . . . . . . . . .268.4 -5.8 277.2 268.1
Hays . . . . . . . . . . . . . . .88.2 -1.7 91.5 86.6
Homeserve . . . . . . . .485.7 3.1 493.7 482.8
Howden Joinery Gr . .114.2 -0.1 116.4 114.2
Intertek Group . . . . .1990.0 75.0 2048.0 1940.0
MichaeI Page Inte . . .492.5 -9.0 511.0 487.8
Mitie Group . . . . . . . .231.8 -7.9 242.2 231.8
Premier FarneII . . . . .193.5 -0.5 198.7 192.3
Regus . . . . . . . . . . . . .103.3 -2.6 106.1 102.0
RentokiI InitiaI . . . . . . .89.5 -2.3 93.7 89.5
RPS Group . . . . . . . . .236.2 2.2 238.0 233.3
Serco Group . . . . . . .539.0 -1.0 548.5 535.5
Shanks Group . . . . . .125.1 -1.9 128.0 124.5
SIG . . . . . . . . . . . . . . .119.9 -8.3 131.5 119.3
SThree . . . . . . . . . . . .360.5 0.2 363.0 349.5
Travis Perkins . . . . . .837.0 -46.5 906.0 836.5
WoIseIey . . . . . . . . .1745.0 -70.0 1848.0 1745.0
ARM HoIdings . . . . . .579.0 -5.0 599.5 578.0
CSR . . . . . . . . . . . . . .275.1 -4.1 286.0 273.2
Imagination Techn . .396.8 -0.4 409.6 393.3
Pace . . . . . . . . . . . . . .112.1 -2.9 117.0 110.4
Spirent Communica .129.7 -0.7 133.8 129.0
British American . .2828.0 7.5 2874.0 2801.0
ImperiaI Tobacco . .2078.0 -39.0 2145.0 2078.0
Avis Europe . . . . . . . .312.0 0.1 312.2 311.0
Betfair Group . . . . . . .632.0 -8.0 659.0 616.5
Bwin.party Digita . . .134.8 -0.7 138.6 132.8
CarnivaI . . . . . . . . . .2094.0 -22.0 2161.0 2088.0
Compass Group . . . .570.0 -4.5 588.1 570.0
Domino's Pizza UK . .501.5 -0.5 505.5 492.7
easyJet . . . . . . . . . . . .364.0 -3.0 373.0 359.6
Enterprise Inns . . . . . .53.8 -1.7 56.8 53.6
FirstGroup . . . . . . . . .361.9 -2.6 369.3 360.8
Go-Ahead Group . . .1541.0 -14.0 1570.0 1503.0
Greene King . . . . . . .479.8 -9.4 494.4 474.6
InterContinentaI . . .1210.0 2.0 1240.0 1200.0
InternationaI Con . . .229.7 -7.6 240.4 228.0
JD Wetherspoon . . . .430.0 -2.8 435.9 427.9
Ladbrokes . . . . . . . . .148.4 0.9 149.9 146.5
Marston's . . . . . . . . . .102.2 -0.8 105.1 101.7
MiIIennium& Copt . .516.0 -1.0 526.0 509.5
MitcheIIs & ButIe . . . .269.1 -5.4 278.0 269.0
NationaI Express . . .260.0 -2.4 269.6 260.0
Punch Taverns . . . . . .13.0 -50.6 17.8 11.2
Rank Group . . . . . . . .140.0 -1.7 147.0 140.0
Restaurant Group . . .289.5 -2.9 299.0 285.7
Stagecoach Group . .252.0 1.9 255.8 250.2
Thomas Cook Group .64.0 -1.6 67.3 63.8
TUI TraveI . . . . . . . . . .193.6 -1.4 199.8 193.1
Whitbread . . . . . . . .1561.0 5.0 1610.0 1557.0
WiIIiamHiII . . . . . . . . .233.2 2.3 234.8 229.6
Abcam . . . . . . . . . . . .388.5 -11.5 404.3 388.0
AIbemarIe & Bond . .380.0 5.0 383.3 375.1
Amerisur Resource . .21.0 0.0 21.6 20.8
Andor TechnoIogy . .682.0 -0.5 689.5 669.3
ArchipeIago Resou . . .77.0 1.0 77.0 74.0
ASOS . . . . . . . . . . . .2220.0 -50.0 2282.0 2190.0
AureIian OiI & Ga . . . .68.3 -0.8 71.0 67.3
Avanti Communicat .325.5 -5.0 344.3 320.3
Avocet Mining . . . . . .226.3 0.0 230.0 223.0
BIinkx . . . . . . . . . . . . .108.8 -0.5 115.1 107.5
Borders & Souther . . .62.5 1.5 64.5 62.0
BowLeven . . . . . . . . .225.0 -36.5 278.2 225.0
Brooks MacdonaId 1165.0 -47.0 1200.0 1165.0
CaIedon Resources .111.5 0.0 111.5 110.3
Conygar Investmen .105.5 -1.0 106.8 105.5
Cove Energy . . . . . . . .87.0 -2.0 90.4 87.0
Daisy Group . . . . . . .119.8 0.8 119.8 118.1
EMIS Group . . . . . . . .552.8 -9.0 564.8 552.8
Encore OiI . . . . . . . . . .59.5 -0.3 62.3 59.3
Faroe PetroIeum . . . .165.3 2.0 169.3 163.0
GuIfsands PetroIe . . .209.3 -1.3 220.0 208.8
GWPharmaceuticaI .114.5 0.3 118.0 111.8
Hamworthy . . . . . . . .670.0 -19.0 694.0 664.0
Hargreaves Servic .1057.0 -8.0 1069.8 1055.0
HeaIthcare Locums . . . .0.0 -1.1 0.0 0.0
Immunodiagnostic .1181.0 -19.0 1206.0 1140.0
ImpeIIamGroup . . . .351.4 -3.6 355.0 350.0
James HaIstead . . . . .474.9 -5.1 484.8 472.0
KaIahari MineraIs . . .238.0 6.5 238.5 229.0
London Mining . . . . .377.3 -14.8 400.0 374.8
Lupus CapitaI . . . . . .121.5 -1.5 124.3 121.0
M. P. Evans Group . .425.0 -5.0 436.0 425.0
Majestic Wine . . . . . .453.0 -5.0 465.3 453.0
May Gurney Integr . .295.0 0.0 295.0 286.3
Monitise . . . . . . . . . . . .35.3 0.0 35.5 34.1
MuIberry Group . . . .1725.0 -35.0 1800.0 1725.0
Nanoco Group . . . . . . .80.0 1.0 81.0 78.3
NauticaI PetroIeu . . .319.5 -6.5 330.3 316.8
NichoIs . . . . . . . . . . . .540.0 -9.0 553.7 540.0
Numis Corporation . .108.0 -7.6 115.3 108.0
Pan African Resou . . .13.0 -0.3 13.4 12.8
Patagonia GoId . . . . . .58.5 -0.5 60.0 58.4
Prezzo . . . . . . . . . . . . .60.0 -1.5 63.0 58.9
Pursuit Dynamics . . .275.3 -6.5 298.0 272.3
Rockhopper ExpIor .226.5 -4.0 236.5 224.0
RWS HoIdings . . . . . .440.0 5.0 445.0 440.0
Songbird Estates . . .150.3 -0.5 152.0 148.3
VaIiant PetroIeum . . .570.0 -6.0 590.0 566.0
Young & Co's Brew .700.0 1.3 700.0 685.5
Intertek Group . . . . .1990.0 3.9
SVG CapitaI . . . . . . . .271.0 2.9
St. Modwen Propert .177.5 2.5
JPMorgan Russian S 663.0 2.5
UK CommerciaI Prop .81.3 2.5
HSBC HoIdings . . . . .607.5 2.2
JPMorgan Asian Inv .239.3 2.2
Hargreaves Lansdow 580.0 1.8
London & Stamford .129.0 1.7
Premier OiI . . . . . . . . .413.0 1.7
Punch Taverns . . . . . .13.0 -79.5
Laird . . . . . . . . . . . . . .159.8 -14.9
Kofax . . . . . . . . . . . . .333.0 -8.0
Ocado Group . . . . . . .158.6 -6.9
SIG . . . . . . . . . . . . . . .119.9 -6.5
Barratt DeveIopmen . .93.0 -5.6
Fidessa Group . . . . .1737.0 -5.4
Premier Foods . . . . . . .17.2 -5.3
African Barrick Go . .500.5 -5.3
Travis Perkins . . . . . .837.0 -5.3
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
[email protected]
AUTOMOBILES & PARTS
BANKS
ALTERNATIVE ENERGY
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . .100.97 0.00 101.0 101.0
Tsy 9.000 11 . . . . . .0.00-100.00 0.0 0.0
Tsy 2.500 11 . . . .306.74 0.00 306.7 306.7
Tsy 9.000 12 . . . . . .0.00-100.00 0.0 0.0
Tsy 5.000 12 . . . .102.69 0.02 102.7 102.7
Tsy 5.250 12 . . . .103.97 0.00 104.0 104.0
Tsy 4.500 13 . . . .106.16 0.02 106.2 106.2
Tsy 2.500 13 . . . .287.20 0.02 287.2 287.2
Tsy 8.000 13 . . . .115.54 0.00 115.5 115.5
Tsy 5.000 14 . . . .112.16 0.12 112.2 112.2
Tsy 4.750 15 . . . .113.46 0.13 113.5 113.5
Tsy 7.750 15 . . . .103.49 0.00 103.5 102.6
Tsy 8.000 15 . . . .127.79 0.14 127.8 127.8
Tsy 4.000 16 . . . .111.25 0.19 111.3 111.3
Tsy 2.500 16 . . . .339.65 0.18 339.7 339.7
Tsy 8.750 17 . . . .139.12 0.55 139.1 139.1
Tsy 12.000 17 . . . . .0.00-100.00 125.5 125.5
Tsy 1.250 17 . . . .114.12 0.32 114.1 114.1
Tsy 5.000 18 . . . .117.82 0.26 117.8 117.8
Tsy 4.500 19 . . . .114.52 0.31 114.5 114.5
Tsy 3.750 19 . . . .108.77 0.32 108.8 108.8
Tsy 4.750 20 . . . .115.97 0.35 116.0 116.0
Tsy 2.500 20 . . . .349.05 0.42 349.1 349.1
Tsy 8.000 21 . . . .145.16 0.39 145.2 145.2
Tsy 1.875 22 . . . .120.66 0.50 120.7 120.7
Tsy 4.000 22 . . . .108.12 0.36 108.1 108.1
Tsy 2.500 24 . . . .306.94 0.48 306.9 306.9
Tsy 5.000 25 . . . .116.97 0.39 117.0 117.0
Tsy 4.250 27 . . . .106.71 0.29 106.7 106.7
Tsy 1.250 27 . . . .113.75 0.44 113.8 113.8
Tsy 6.000 28 . . . .129.53 0.26 129.5 129.5
Tsy 4.750 30 . . . .112.18 0.23 112.2 112.2
Tsy 4.125 30 . . . .289.63 0.42 289.6 289.6
Tsy 4.250 32 . . . .105.08 0.25 105.1 105.1
Tsy 4.250 36 . . . .104.25 0.22 104.3 104.3
Tsy 4.750 38 . . . .113.05 0.21 113.1 113.1
Tsy 4.500 42 . . . .107.37 0.00 112.8 98.9
% %
Wealth Management
18 CITYA.M. 2 AUGUST 2011
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1.4263 -0.0135
PAYOT: PRECIOUS FEET RITUAL
The French skincare brand is just the one
to turn to if you want nourished, hydrat-
ed skin as well as pretty nails. The
Precious Feet Ritual starts with the eyes
a firming mask rehydrates bags and
plumps the brow area while the therapist
goes to work on your feet. First, a foot
bath full of essential oils of orange and
grapefruit, then your feet and lower legs
are exfoliated with a hydrating sugar
scrub loaded with more essential oils.
Relax and unwind further while a detoxi-
fying malachite gemstone balm is applied
and your legs wrapped in heated booties.
Now with feet and legs as smooth as a
babys bottom, youre ready for your pol-
ishing and your holiday. 60 minutes, 60,
Marylebone Hotel. 0207 042 6444, www.thethird-
space.com/spa
COWSHED: ULTIMATE PEDICURE
This is the spa and product range of choice
for movers and shakers its the in-house
brand at Soho and Shoreditch House mem-
bers clubs as well as the spa at the groups
ultra-exclusive Babington House. But the
brand is not all image: its pedicures are
among the best in town according to nail
buffs (pun intended). The Ultimate
Cowshed Pedicure ticks all the boxes, and
well too. Nailwork is completed filing,
cuticle-tidying, scrubbing. Then the good
part: a deep leg and foot massage fol-
lowed by a hydration mask foot wrap
during which your neck and shoulders
are massaged. The more hardcore among
you may want to try the Skinceuticals
Fruit Acid Peel, which requires a skin
test the day before to make sure you
wont react badly. The result is divinely
soft feet perfect for those St Tropez
nights in delicate Marc Jacobs sandals. 75
mins, 55. Look at www.cowshedonline.com to
find a location near you.
THE SPA AT BROWNS: HOT TO TROT
Browns spa is famous for its seasonal
Before heading for the beach,
make sure your toes look the
part, says Zoe Strimpel
A good pedicure is
essential before a
holiday.
Lifestyle | Health & Beauty
BMWS I3
AND I8
IN MOTORING
TOMORROW
19
Where the
nail buffs
go pre-hols
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Summer
workouts
RUN FREE
Parkour or free running is the art of leaping
around town the idea is to get between
two points as efficiently as possible, which
usually involves lots of leaping and jumping,
preferably with a bit of street furniture
thrown in for good measure. Visit
www.parkouruk.org for more info and
details of classes.
DIG OUT THE MAP
Orienteering (navigating and completing a
course in the best possible time) kills two
birds with one stone: not only can it burn
ber-cals, youll also be mentally stimulated
at the same time (unlike many other forms
of exercise). www.britishorienteering.org.uk
is the home of the UK governing body.
GO GUNG-HO
Not for the fainthearted, paintballing can be
a great high intensity workout for those
who arent averse to the idea of getting a
bruise or two in the name of fitness.
Whether youre looking for an alternative to
golf for a bonding session with your client,
or youre bored of intervals on the treadmill,
paintballing will get your heart racing if
nothing else. UKPaintball have a fabulous
venue at London Bridge housing zones with
names like Vietnam Village, Apocalypse
London and the Super Airfield (made up of
inflatable barricades).
www.ukpaintball.co.uk
GET GALLOPING
Remember Bucking Bronco? If you fancy
toning your tum rodeo-style, the iGallop may
be for you. This popular abs exerciser
swivels around underneath you while you try
to stay on. Give it a go while youre watching
Stenders. Find it on Amazon or eBay.
VISIT THE VIRTUAL SPA
Fancy having your dreams decoded and get-
ting a daily stretch all without budging from
your desk chair? Yes, there is such a place:
www.lhj.com/app/getcentered (itll keep you
away from Facebook for half an hour, if
nothing else).
Episode 21: Talking new business over several bottles of 03 Bordeaux
SIR Roderick leans across and whispers, Are
you trying to tell me something David?
Excuse me Roderick?
Only that desiccated scalper Carmichael
uses this damned place.
Oh, I reply. Actually, Sandy brought me
here, I lie. Sir Roderick harrumphs theatri-
cally.
The sommelier approaches. Sir Roderick
has delegated the task of ordering wine to
me. Its a test. I fail before I open my
mouth. The 03 sir? Or will it be the 59 this
time?
Told you. Bloody Carmichael, grunts Sir
Roderick. The Lafite 03. Two, no, four bot-
tles Michel, commands Sir Roderick.
Indeed sir, replies Michel, obsequiously.
Now, gentlemen And Sir Roderick,
suddenly suavity and emollience personified,
commences his pitch to our potential for-
eign clients over lunch in the private dining
room of the Bensley Hotel.
I barely listen, although I know that the
prospective transaction could pay all of our
salaries from now until the cows come
home.
Roderick shifts from generalities to
specifics and talks of schedules and mile-
stone dates. September, October and
November. All I can think of are school term
dates and due dates. Even my 40th birth-
day. I realise that if we undertake this
transaction theres a good chance that I will
not be present at the birth of my twins. I
CITY DAD
think of Emma, my fragile twins and of Noel.
I contemplate principled objections to the
transaction. The companys credit rating is
at risk. Their auditors have raised issues
about off balance sheet items. The chairman
and chief executive are one and the same
individual. The company is too close to one
or two unsavoury regimes and in the cur-
rent climate...
David, perhaps you could take our
friends through some of our thoughts on
strategy. I look up. Everyone is looking at
me.
Thank you Roderick. Were delighted to
have this opportunity I begin.
City Dad will be continued next Tuesday.
For previous episodes, see www.cityam.com
pedicures. Other spas may boast
deluxe or luxury but nobody does it
quite like this. In the smart hotels base-
ment you find a tiny warren of rooms,
where seasonal pedicures that are rather
like holidays in themselves take place.
Ive had blueberries, chocolate and
honey applied to my tootsies here
always with a matching cocktail. This
summers Hot to Trot pedicure
involves a deep pressure point foot mas-
sage given while you sip on a passion-
fruit, lychee and minty gin cocktail,
followed by a mint soak, paraffin wax
booties and a tip-top polish. 90 mins, 85,
Browns Hotel, 33, Albermale Street, W1S 4BP.
020 7518 4009, www.rocco fortehotels.com.
NAIL GIRLS: SIGNATURE PEDICURE
Sister-run Nail Girls have a great little
shop in Islington and brilliant, eye-pop-
ping colours they made themselves.
Better yet, the colours free from harmful
chemicals (toluene, formaldehyde, DBP
and camphor), are not animal tested and
use recyclable packaging. In the drying
lounge you can watch a movie or just
hang out while sipping a glass of fizz or
green tea. The spa is a cool hangout as
much as a nail salon just as it should
be. 40 mins for 40 mins. 50 Cross Street,
Islington N1 2BA. 020 7359 2772,
nailgirls.co.uk/in-spa
WAH NAILS: LUXE PEDI
Now an institution for the upwardly
mobile and hip (Londons first hipster nail
salon, wrote the New York Times), Wah
Nails has a flagship in Dalston and a bou-
tique in Top Shop. Its the place you go if
youre feeling mega-adventurous (not,
ahem, tacky). Nail designs include tuxedos,
stars and stripes, hundreds and thousands
and Jackson Pollock-style splashes. But
your basic luxe pedi includes massage,
exfoliation and polish, for 51. Crazy nail
art costs from 30 see how daring you
feel when you get there. 420 Kingsland Road,
E8 4AA, and Selfridges. 020 7812 9889, wah-
nails.com
BASTIEN GONZALES
Hes the Karl Lagerfeld of footcare: a
(French)man so hardcore he believes pedi-
cures should be treated like trips to the
dentist. His goal is optimum mobility
involving muscular flexibility, joint mobil-
ity and blood circulation, and skin elastici-
ty. As for your nails, theyll be left as
sparkling as with a lacquer only with-
out one. Using a technique passed down
from his grandmother, expect deep mas-
sage, the use of dentist drills (or similar) for
dry skin removal and nails that look even
better without varnish than with. 110, 60
minutes. Cadogan Hotel, 75 Sloane Street, SW1X
9SG, 0776 666 3271, bastiengonzalez.com
WINE DINNERS AT PALM
Palm Restaurant, the smart American steak-
house in Belgravia thats built up quite a fol-
lowing since it opened on Pont Street two
years ago, is holding a series of wine tasting
dinners over the next year. Things kick off next
month with a dinner celebrating Taittinger
champagne on 16 September, with four spe-
cially-matched courses plus insight and facts
from the experts. The 100 price also includes
a welcome drinks reception. There are only 30
places available for each monthly dinner, so
get booking. www.thepalm.com
WINE BY IPAD
With the food industry beginning to cotton on
to the power of apps and social media technol-
ogy, the latest craze seems to be menus by
iPad. Gordon Ramsays restaurants Maze and
Maze Grill have joined his Claridges dining
room in offering wine menus by the iPad, the
advantage being an interface that includes
photography, product information and other
features to help you make an informed wine
choice. But can you check your email on it too?
BIODYNAMIC BOSI
Also on the wine front, French chef
Claude Bosi, who has two Micheline
stars at his restaurant Hibiscus, is
now offering a wine list made up of
85 per cent biodynamic wines.
That means wines from small, nat-
ural growers, producing wine
under ethical ecological condi-
tions. That makes Hibiscus one
of the leading restaurant for
biodynamic wine in the coun-
try.
VERY BRITISH BRUNCH
Bastion of tradition Greens
Restaurant and Oyster bar in
St James is launching a week-
end brunch of kedgeree, cum-
berland sausages, mash and
bullshot cocktails (a bloody
mary with beef bouillon).
Bistro du Vin
40 St John Street, EC1M 4DL
www.bistroduvinandbar.com
FOOD hhhii
SERVICE hhhii
ATMOSPHERE hhhii
Cost per person without wine: 35
I
TS hard to get excited about the
name. If I didnt know better, Id
bracket Bistro du Vin along with
generic, naff, budget chains like Bella
Pasta and Caf Rouge, particularly upon
learning that its also a chain.
However, I do know better. Bistro du Vin
is the restaurant incarnation of Hotel du
Vin, the chain of lush boutique hotels in
pretty towns around the country. If youve
ever stayed in one, youll know the experi-
ence generally defies the common-or-gar-
den dowdiness of the name.
There are no Hotels du Vin in London,
but the company is instead making its
presence felt by opening up standalone
restaurants. The first two are up and run-
ning in Clerkenwell and in Soho. The
ethos is all about local sourcing, whole-
some ingredients, down-home simplicity,
classic French dishes and an extensive,
interesting wine list. All of which could go
either way, and some of which goes both.
First to open back in the winter months
was the Clerkenwell branch, on St Johns
Road. Its not an easy location: right by
Smithfield market, youre surrounded by
plenty of topflight restaurants like St John,
Vinoteca and Hix Oyster & Chop House
among such company, it can be hard to
stand out. The previous inhabitant of the
site, Michelin-starred chef Bjorn Van der
Horst, found this out with his restaurant
Eastside Inn, a fine place which neverthe-
less closed after a year and a half.
The Bistro du Vin interior is based
around the same layout that Van der Horst
installed: at the centre of the large main
dining area is an open kitchen surrounded
by a long counter. Here, if you so choose,
you can sit and eat while watching the
chefs battle the heat coming off the Josper
grill, a fashionable contraption that not
only grills but, by some trickery or other,
does so more efficiently, tastily and suc-
cessfully than mere normal grills.
The grilling quality wasnt in doubt
with the steak I ate, though the quality of
From hotels to hearty, classy bistros
POLPO
Sohos popular Venetian tapas destination Polpo has so
far produced three offspring in remarkably short time:
Polpetto and Spuntino, both also in Soho, and Da Polpo
in Covent Garden. They reproduce Polpos winning for-
mula of delicious small plate food, perfect cocktails and
cosy, shabby-chic interiors, while each maintains its indi-
vidual appeal too. www.polpo.co.uk
PIZZA EAST PORTOBELLO
A West London version of the snazzy-but-casual
Shoreditch restaurant opened recently instead of call-
ing it Pizza West, its owners (the Soho House Group)
have called it Pizza East Portobello. Whatever, the
relaxed, groovy atmosphere and first-rate pizza will be
bringing in the Notting Hill masses.
www.pizzaportobello.com
BOISDALE
Scottish whisky, Scottish beef, Cuban cigars and inter-
national jazz are a pretty good combination, particularly
when theyre in such plentiful supply as they are at the
three Boisdales. The original Boisdale of Belgravia was
joined a few years ago by the City version, while the
grand temple of good living that is Boisdale Canary
Wharf opened earlier this year. www.boisdale.co.uk
the meat was it was about 50 per cent
chewy fat. Im all for local sourcing, but in
honesty Id rather you flew it in from
Brazil or Timbuktu if you cant find a bet-
ter piece of beef than that in
Aberdeenshire.
Everything else was pretty good though,
even if you do feel rather shoved away in
the dark in much of the restaurant (and
its a big place). The dcor is fine, with
some lovely leather banquettes, walls
crammed with pictures and darkwood
tables and chairs, but Ive a feeling it will
work better as a cosy escape in winter.
Downstairs in the basement theres a pri-
vate dining room called the Whisky Snug
I have a feeling this will come into its
own in the colder months.
I had a satisfactory lobster bisque to
start off with, served with croutons and
cheese in a rustic clay bowl, while my
friends platter of Iberico Belotta ham
served, as is the way, on a wooden chop-
ping board made him swoon. While my
bone-in rump steak didnt impress I
almost went for steamed steak and onion
pudding, and wished I had his Herdwick
lamb rump was cooked to sweet, pink per-
fection and doused in a rather lovely lentil-
and-vinaigrette concoction. You can order
bone marrow on the side, so we did.
Though my steak missed the mark,
there are eight different steaks to choose
from, ranging from onglet (12.95) to 600g
porterhouse (43). You can also have your
shellfish lobster, crayfish, clams, crab
whacked on the Josper.
The Soho Bistro du Vin, on Dean Street,
is a brighter, funkier place with a similarly
hearty, fulsome menu. Crucially, though,
its not the same menu if Bistro du Vin is
a chain, its the right sort of chain: one
that treats each outlet as a separate, stand-
alone restaurant. If more pop up, Ill wel-
come them, and pop along.
FOOD & BOOZE
NEWS
TIMOTHY BARBER
THREE RESTAURANTS WITH SPIN-OFF VERSIONS
TIMOTHY BARBER
Bistro du Vin: rustic
chic meets
dependability.
The Hotel du Vin
chain has launched
restaurants in Soho
and Clerkenwell, and
early signs are good
Lifestyle | Restaurants
CITYA.M. 2 AUGUST 2011 20
WORDS BY
TIMOTHY BARBER
T
E
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T
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TWENTY TWELVE
BBC2, 10PM
Roman remains of national
significance are discovered on the site
of the Aquatics Centre. Comedy, with
Jessica Hynes.
THE SEX EDUCATION SHOW
CHANNEL4, 8PM
Pupils at Angmering School in Sussex
learn about genetics, and a couple
explain how they overcame physical
disability to conceive a child.
CSI: MIAMI
CHANNEL5, 9PM
The body of a waitress is found in the
pool of the illustrious nightclub where
she worked. Crime drama, starring
David Caruso and Emily Proctor.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmFootball Asia 8pmTest
Cricket 10pmDarts 11pmThe Sky
Sports Years 12amTest Cricket
2amSoccer AM: The Best Bits
3amFootball Asia 3.30am
Footballs Greatest 4am-6amTest
Cricket
SKY SPORTS 2
7pmLive Winning Post 9pm
Formula Two Championship 10pm
Poker 12amBritish Motocross
Championship 1amFormula Two
Championship 2am-4amMixed
Martial Arts
SKY SPORTS 3
7pmSports Unlimited 8pmPool.
The World Cup of Pool V. 9pm
Football Asia 9.30pmFootballs
Greatest 10pmMixed Martial
Arts 12amSports Unlimited 1am
Football Asia 1.30amFootballs
Greatest 2am-4amInternational
Bowls
BRITISH EUROSPORT
6.30pmUnder-20s World Cup
Football 8pmCycling 8.45pm
Inside WTCC 9.15pmPorsche
Super Cup 9.45pmCycling
10.45pm-1amLive Under-20s
World Cup Football
ESPN
6.30pmFA WSL Review Show
7.15pmRussian Premier League
Review7.45pmLive Pre-Season
Football 9.45pmESPN Kicks
10pmCopa America Football
11pmFA WSL Review Show
11.45pmRussian Premier League
Review12.15amESPN Kicks
12.30amESPN Press Pass 1am
Live Major League Baseball 4am
Planet Speed 4.30amAmerican
Le Mans Series 5.30am-6am
ESPN Press Pass
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmBritain &
Irelands Next Top Model
9pmFour Weddings US 10pm
Psychic Sally: On the Road 11pm
Criminal Minds 12amCSI: Crime
Scene Investigation 1.50am
Ghost Whisperer 2.40am
Charmed 4.20amNothing to
Declare 5.10am-6amMaury
BBC THREE
7pmTotal Wipeout 8pmSmall
Teen, Bigger World 9pmGeordie
Finishing School for Girls 10pm
EastEnders 10.30pmAngry Boys
11pmFamily Guy 11.45pm
Geordie Finishing School for Girls
12.45amMongrels 1.15amAngry
Boys 1.45amUnderage and
Pregnant 2.15amSmall Teen,
Bigger World 3.15amMongrels
3.45amTotal Wipeout
4.45am-5.15amUnderage and
Pregnant
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmFriends 9pm
Smallville 10pmCleveland Show
11pmBig Bang Theory 11.55pm
How I Met Your Mother 12.55am
My Name Is Earl 1.45amHow I
Met Your Mother 2.10amDavid
Blaine: Drowned Alive 2.55am
Glee 3.40amHeartland 4.25am
The Class 4.45am-6amSwitched
HISTORY
7pmAmerica: The Story of the US
8pmAmerican Pickers 10pmOnly
in America 11pmGhosts on the
Underground 12amTony Robinson
Down Under 1amOnly in America
2amMega Movers 3amAmerica:
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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 Fashion reminiscent
of the past (5)
3 Marked by aggressive
ambition (5)
6 Believer in a major
religion (5)
8 Give a speech (5)
9 Pigswill (4)
11 At a lower place (7)
13 Saucepan cover (3)
15 Poker stakes (5)
17 Little rascal (3)
19 Gambling (7)
21 Elaborate song for
a solo voice (4)
22 Transfer to another
track, of trains (5)
23 Unlawful act (5)
24 Fleshy root (5)
25 Broom made of
twigs (5)
DOWN
1 Amy Winehouse
hit of 2007 (5)
2 Arm of the Indian
Ocean between Africa
and Arabia (3,3)
3 Foretelling events
as if by supernatural
intervention (9)
4 Cloak, often knitted (5)
5 Bear fruit (5)
7 Capital of
Mongolia (4,5)
10 Aquatic creature (5)
12 Deciduous tree (3)
14 Forename of golfer,
Mr Woosnam (3)
16 Deprive of food (6)
17 Gusset (5)
18 Measure the depth
of something (5)
20 Shine brightly,
like a star (5)
S
N
N
A
I O
E
S
T
4

4

P E T T Y E P O C H
A A O A F R O
N N K N I T T E D
A N K L E T A
M E L O W E R S
A C R E A R E E D
O S S I F Y Q R
R C U V U L A
A N T O N Y M I G
N E A R M E O
D A N T E Y E M E N
4 9 2 7 9 3
3 2 5 1 1 4 2
9 6 8 7 9 8 7 4
2 1 6 7 1 3
3 7 2 6 1 5 4
9 8 3
3 7 5 9 2 1 6
9 5 8 4 9 8
3 1 2 7 9 5 8 7
4 9 8 2 3 4 1
2 6 9 1 2 7
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
INSOLVENT
Lifestyle | TV&Games
21 CITYA.M. 2 AUGUST 2011
ENGLAND wing Chris Ashton has
defended the teams New
Zealand-baiting black away
kit, insisting players dont
care what colour they wear.
Martin Johnsons men
will debut the contro-
versial change strip,
which has riled the
likes of All Black great
Jonah Lomu, against
Wales on Saturday.
Ashton (far right)
said: You are more
worried about playing
for your country than
what colour kit youre
wearing. If we played in
pyjamas it wouldnt bother me.
The kit may be World Cup-bound,
but five players look to have missed
out after Johnson trimmed his squad
to 40. Wasps forward Joe
Worsley, a 2003 World Cup
winner, and Saracens wing
David Strettle were the
biggest casualties.
Gloucester back
James Simpson-Daniel
and Leicester pair
George Chuter and
Thomas Waldrom
were also axed.
But Leicester centre
Manu Tuilagi and
Gloucester wing
Charlie Sharples are
still in contention for
the final 30-man party.
Zhirkov leaves as Chelsea prepare a third
bid for Modric Picture: ACTION IMAGES
ENGLAND captain Andrew Strauss
claims the nature of yesterdays crush-
ing 319-run win over India that put his
side within touching distance of being
ranked the best Test side on the planet,
showed why their stay at the summit is
destined to be a lengthy one.
Set 478 to win after Englands tail
wagged for the second time in the
match, India succumbed to an
onslaught of high quality pace bowling
led by Tim Bresnan, who had earlier
fallen 10 short of a maiden Test century
in Englands total of 544 all out.
Such a convincing win, one that puts
England 2-0 ahead in a four Test series
which they must win by two clear
matches to leapfrog India in the ICC
rankings, looked unlikely at best when
they were 124-8 on day one.
But the battling qualities exhibited
by every member of his side gives
Strauss confidence that England are
here to stay as the worlds premier Test
force.
He said: One of the real measures of
a good side is whether they are able to
come back from difficult circum-
stances. Most sides are pretty good
when theyve got everything their own
way.
But in the last two Test matches
weve had to dig pretty deep, and it
gives me a lot of pride to see guys put-
ting their hands up and delivering
when it matters.
It also fills me with a lot of confi-
dence for the future that we can go on
and become a better side.
With Indias star-studded batting
line-up, Rahul Dravid aside, woefully
short of runs and a bowling attack
stretched to breaking point, the
prospect of an England whitewash
looks a realistic outcome.
But the ever pragmatic Strauss
knows India, who now have a eight
days to regroup ahead of the Edgbaston
Test, will come back fighting, desperate
to show their pre-series billing was jus-
tified.
Asked whether his team would now
be targeting a clean sweep against
India, who have been ranked No1 since
December 2009, Strauss said: We dont
look at it like that. All were looking to
do is turn up at Edgbaston to try to win
that Test match.
Weve had to work very hard to win
these two and we dont expect any dif-
ferent from that.
Hard work on the pitch is likely to be
mirrored by equally strenuous tasks off
it, with Strauss now facing a series of
selection dilemmas following
Bresnans masterclass with the ball.
The Yorkshireman finished with Test
best figures of 5 for 48, while man of
the match Stuart Broad picked up the
key wicket of Dravid early on and
James Anderson chipped in with a
magic delivery to disturb VVS Laxmans
furniture, before Sachin Tendulkars
rearguard action was ended on 56
when he padded up to the Lancastrian.
With Chris Tremlett, previously
Englands most impressive bowler this
summer, likely to be fit once more by
the time the two teams meet again in
Birmingham, Strauss now has the envi-
able conundrum of selecting from an
embarrassment of riches.
BY JAMES GOLDMAN
CRICKET

Ashton laughs off kit row as Johnson

axes Worsley and Strettle from squad
CHELSEA are poised to rake in 13m
by offloading versatile Russia interna-
tional Yuri Zhirkov to ambitious
Anzhi Makhachkala.
The move would help balance the
books and free up squad space as the
west Londoners prepare a third bid
thought to be around 30m for
Tottenhams Luka Modric.
Spurs have resisted Chelseas 22m
and 27m offers for the Croatia play-
maker, but their resolve to keep him
appears to be waning.
Assistant manager Kevin Bond yes-
terday conceded Modric might leave,
despite chairman Daniel Levy previ-
ously insisting his transfer was not up
for discussion.
You dont want to lose your best
players and he certainly is one of our
best players and we desperately dont
want to lose him, but I think every-
body has got a price, said Bond.
Although the chairmans adamant
he doesnt want to sell him, if some-
body came along and the money
turns your head and he did go then
wed have to get on with it.
Zhirkov has failed to establish him-
self as a first choice since his 17m
move from CSKA Moscow in 2009 and
is in the final year of his contract.
Chelsea to
bank 13m
for Zhirkov
BY FRANK DALLERES
FOOTBALL

Sport
22
Barrage from
Bresnan puts
sorry India
to the sword
Bresnan (centre)
took Test best fig-
ures of 5 for 48
Picture: GETTY
Forwards D Cole, A Corbisiero, P Doran-
Jones, T Payne, A Sheridan, M Stevens, D
Wilson, D Hartley, L Mears, S Thompson,
M Botha, L Deacon, C Lawes, T Palmer, S
Shaw, T Croft, N Easter, H Fourie, J
Haskell, L Moody, C Robshaw, T Wood
Backs D Armitage, B Foden, C Ashton, M
Cueto, U Monye, C Sharples, M Banahan,
R Flutey, S Hape, M Tindall, M Tuilagi, T
Flood, C Hodgson, J Wilkinson, D Care, J
Simpson, R Wigglesworth, B Youngs
Pre-World Cup fixtures Wales (H), 6
August; Wales (A), 13 August; Ireland
(A), 27 August
ENGLAND | REVISED TRAINING SQUAD
Analysis: Are Red Bull really in crisis?
JENSON BUTTON and McLarens win in
Hungary on Sunday means Red Bull,
previously so dominant with six victories
in the first eight races of the year, have
since failed to win in three (below left).
But has the notion of their deterioration
been overplayed? McLaren may have
outscored them at the weekend, but it
was only the second time all year, with
Red Bulls Sebastian Vettel and Mark
Webber still consistently amassing
points (below right).
LAST 10 WINNERS
Jenson Button McLaren
Lewis Hamilton McLaren
Fernando Alonso Ferrari
Sebastian Vettel Red Bull
Jenson Button McLaren
Sebastian Vettel Red Bull
Sebastian Vettel Red Bull
Sebastian Vettel Red Bull
Lewis Hamilton McLaren
Sebastian Vettel Red Bull
Sebastian Vettel Red Bull
BY FRANK DALLERES
RUGBY UNION

Race by race l 2011 Red Bull v McLaren

pts
Red Bull
McLaren
Aus Mal Chi Tur Spa Mon Can Eur Bri Ger Hun
40
35
30
25
20
15
23
FRENCH OPEN champion Li Na has
illustrated the huge commercial
value of Chinese athletes by becom-
ing the worlds second highest earn-
ing sportswoman off the back of her
first grand slam title.
Li has signed sponsorship contracts
worth up to 45m since her break-
through triumph at Roland Garros in
June and is now second only to fellow
tennis player Maria Sharapova in the
earning stakes. The 29-year-olds his-
toric defeat of Francesca Schiavone in
the Paris final made her Asias first
grand slam champion and was
watched by an estimated audience of
116m in China alone.
She has since agreed seven endorse-
ments lasting three years each that
are worth a minimum total of 8.5m
annually and up to 15m, depending
on performance.
If Li maximises those contracts she
is likely to overtake Sharapova, who is
thought to earn around 15m a year
in prize money and sponsorship.
TENNIS

Li reaps 45m from historic slam title

RALLY FINLAND 2011. YOU CANT CONTROL
THE ELEMENTS, BUT YOU CAN WIN THE RACE.
Congratulations to team Citron, winners of Rally Finland 2011.
In off road rallying, driving conditions could suddenly change at any stage
of the race, so drivers need to have confidence in their tyres ability to adapt.
MICHELIN tyres with their excellent grip give them that confidence, whatever
the weather or terrain.
You could also benefit, on road and off road, from the expertise Michelin has
derived from motorsport with the MICHELIN Latitude Cross.
Experience the performance at www.michelin.co.uk/experience-the-performance
Results
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email [email protected]
SPORT | IN BRIEF
Newcastle release Barton
FOOTBALL: Newcastle United announced
yesterday that Joey Barton will leave the
club on a free transfer, despite having a
year remaining on his contract. The club
were expected sell the 28-year-old this
summer but no offers were tabled.
Wales sweat over skipper Rees
RUGBY UNION: Wales are hopeful their
captain Matthew Rees will be fit to lead
his country at next months World Cup
despite being ruled out of Saturdays
game warm-up against England with a
neck injury.
Liu Xiang Hurdler is first Chinese athlete
to achieve triple crown of world champi-
on, Olympic champion and world record
Yi Jianlian Basketball star has played in
NBA for Milwaukee Bucks, New Jersey
Nets and Washington Wizards
Liang Wen-Chong Only Chinese golfer in
worlds top 100 and the first to make cut
at a Major, The Open in 2008
CHINA DALEYS | FAR EAST SPORT STARS
T
HE RANKINGS may not reflect it
yet, but theres no doubting this
England side are the best Test
team on the planet right now.
That India were steamrollered at
Trent Bridge yesterday afternoon came
as no surprise. The tourists had their
opportunity when they won what
looked like a vital toss and had England
eight down early on.
But Stuart Broads heroics with the
bat and then with ball turned the
momentum in Englands favour and
when Andrew Strausss side get the
scent of blood these days, theyre as
ruthless as any of the great Australian
or West Indies sides of old.
CAREER-DEFINING
In many ways this could prove a defin-
ing match in Broads career, with his
status as a genuine Test all-rounder now
solidified. A slight adjustment to his
length has transformed the threat he
carries as a bowler, and the confidence
hes garnered from the wickets hes
taken has allowed him to bat with
greater freedom.
With Broad back to his best it will be
interesting to see how brave England
are with their selection ahead of the
third Test. Andy Flower has been very
reluctant to err from a four-man bowl-
ing attack up to now.
But Jonathan Trotts injury, Tim
Bresnans all-round display up at
Nottingham and Chris Tremletts likely
return to fitness presents England with
the opportunity to field a five-man
attack without harming the depth of
their batting, too much.
For me, Tremlett has to play if fit and
its impossible to drop the likeable
Bresnan after he scored 90 runs and
took five wickets.
Losing someone of Trotts ability
could never be considered anything but
a blow, but on this occasion his unavail-
ability could be viewed as a blessing in
disguise.
BIG-HITTERS
As wonderful as England have been, its
slightly disappointing that a series
which promised so much has thus far
been an extremely one-sided affair.
Coach Duncan Fletcher, who must be
casting his mind back to 2006 when his
undercooked England side were bat-
tered in Australia, and captain
Mahendra Singh Dhoni have a lot of
soul searching to do but I wouldnt
write them out of this series just yet.
By the time the sides reconvene at
Edgbaston, another ground at which
the ball is likely to swing, India could
well have three of their big-hitters back.
The return of Virender Sehwag, the
worlds most destructive opening bats-
man, would give the tourists a major
lift as would the solidity Gautam
Gambhir usually provides, while
Zaheer Khan doubles Indias chances of
taking 20 wickets.
SCHOOLBOY
It would be remiss, of course, not to
comment on the Ian Bell run out inci-
dent which dominated the third days
play.
It was an unforgivable, schoolboy
error from Bell and had it been the
last day of an Ashes deciding Test
theres no way on earth he would
have been given another life.
Thankfully, it didnt have a major
impact on the game the stuffing
had already been knocked out of
India and Dhonis decision meant
the potential for some unsavoury
scenes was immediately eradicated.
Options are Broad
and plentiful after
Trent Bridge romp
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