Cityam 2012-01-31

FTSE 100 t5,671.09 -62.36 DOW t12,653.72 -6.74 NASDAQ t2,811.94 -4.61 /$ 1.57 unc / 1.20 +0.01 /$ t1.
.20 +0.01 /$ t1.31 -0.01

Miliband
urges fresh
bonus tax
THE Labour party yesterday said
Stephen Hesters decision to forego his
near 1m bonus must not be a one-off
episode and called on the govern-
ment to introduce new measures to
crack down on high pay.
Labour leader Ed Miliband yesterday
urged the coalition to adopt a bonus
tax for bankers. He also called for a
new law requiring a worker at every
company to sit on the committee that
decides how much executives are paid.
He said: I dont think this can be
just a one-off episode, because if we
dont deal with this systematically, if
we dont deal with the issue of
bankers bonuses in a proper way, this
kind of thing is just going to re-occur.
Labour has been emboldened by its
part in forcing Hester to forego his
bonus, especially after it used a similar
threat of a House of Commons vote to
make Rupert Murdoch drop his bid for
BSkyB.
A Labour strategist told City A.M. the
party thinks there is a high chance it
could force the government to intro-
duce some kind of bonus tax, especial-
ly as the pay packages of chief
executives at privately-owned banks
are revealed over the coming weeks.
Meanwhile, analysts yesterday said
that RBS shares had become less
attractive following the furore,
because there was now a higher
chance of further political meddling
at a later date making it less likely for
the taxpayer to get a return on its
investment.
ALLISTER HEATH: P2; MORE: P8-9
BY DAVID CROW
POLITICS
EU LEADERS SIGN
FINANCIAL PACT
www.cityam.com Issue 1,560 Tuesday 31 January 2012 FREE
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NEWS AND ANALYSIS P11
BUSINESS WITH PERSONALITY
UK opts out of treaty but Cameron gives ground
EUROPE took a major step towards
full fiscal union last night, as every
EU member country except the UK
and the Czech Republic vowed to cut
budget deficits and submit them-
selves to greater scrutiny from the
European Commission.
Prime Minister David Cameron
refused to agree to the constraints at
the European Council meeting, but
was forced into an embarrassing
climbdown from previous promises
to block the new treaty from using EU
institutions, allowing the European
Court of Justice to judge when coun-
tries fail to stick to their promises.
The agreement places no obliga-
tions on the UK, insisted Cameron,
claiming that he will take action if
our national interest is threatened.
The Prime Minister also restated his
absolute support for maintaining the
single market.
The 25 countries that signed up
hope to have a formal pact in place by
March, and plan to ratify and imple-
ment it in the following months.
The agreement is seen as a signifi-
cant victory for German Chancellor
Angela Merkel, who has spent
months pushing for Eurozone mem-
bers to agree on tighter budgetary
constraints. Under the treaty, signato-
ries will agree to cut budget deficits
and reduce national debts as a pro-
portion of their economic output or
face automatic fines, likely to stand
at 0.1 per cent of GDP.
In an effort to put in place a big
enough firewall to protect Italy and
Spain from bankruptcy, the Council
also agreed to bring the establish-
ment of the European Stability
Mechanism forward to July a year
earlier than initially planned.
But fears remain that this 500bn
(418.1bn) fund may be insufficient,
after Italian PM Mario Monti and
Spanish leader Mariano Rajoy both
made recent calls for it to be doubled
to 1 trillion.
French President Nicolas Sarkozy
used his press conference after last
nights meeting to raise hopes that
the next European breakthrough
could come in the form of a Greek
debt deal within days, but said the
ongoing negotiations were not a
focus of yesterdays meeting.
The leaders also issued a draft state-
ment on jobs and growth, responding
to intense political pressure over
youth unemployment. It calls for
each country to do more to boost
apprenticeships, provide training for
unemployed school leavers and
reform labour markets.
Suggestions include cutting the
tax-wedge that hits young and low-
skilled workers, and ensuring qualifi-
cations are recognised across borders,
boosting labour mobility. However, a
source close to David Cameron
argued that Britain is already taking
steps to cut youth unemployment, so
will not need to do anything more to
adhere with last nights agreement.
MORE: P6-7
Angela Merkel won support for closer union, but David Cameron did not wholly agree
BY TIM WALLACE
EUROZONE
News
2 CITYA.M. 31 JANUARY 2012
1bn UK fund
up for grabs
LEADING investment fund managers
are competing to control up to 1bn of
UK government money, as part of a
scheme that aims to make it easier for
medium-sized firms to raise funds.
The Treasury has called for applica-
tions to take part in its Business
Finance Partnership (BFP) scheme,
which aims to break the control of
banks over credit by lending directly
to British firms.
City A.M. understands that several
top managers are interested in taking
part, with M&G and BlueBay consid-
ered to be possible applicants.
Public money will be invested on a
commercial basis, with the govern-
ment providing up to 50 per cent of
each fund on the condition that the
money is lent to UK businesses with a
turnover of less than 500m.
M&G declined to comment but the
funds expertise in this area means
that it is very likely to be involved in
the bidding process.
Its M&G UK Companies Financing
Fund set the template for the govern-
ment scheme and has so far provided
830m to firms such as Barratt
Developments, Wincanton and Taylor
Wimpey all public companies that
either declined or could not raise
funds in the traditional manner.
BlueBay is in the process of setting
up an equivalent pan-European fund.
BY JAMES WATERSON
CAPITAL MARKETS
HK IPO FOR SUNSHINE OILSANDS

Sunshine Oilsands, a Canadian tar
sands company backed by Chinese
state-owned enterprises, has shunned
Toronto and will next month launch
an initial public offering in Hong
Kong that could raise as much as
$600m. The company plans to sell a
25 per cent stake in the offering,
according to people close to the deal,
with the shares due to start trading
by the end of February.
MANDELSON USES LORDS LOOPHOLE
TO SHIELD CLIENTS
Lord Mandelson has sidestepped a
new requirement for peers to disclose
certain business clients after exploit-
ing a loophole in the system. He had
been expected to be among a wave of
peers to publish a full list of their
clients under new rules but the for-
mer Labour business secretary has
avoided any need to do so after simply
moving his advisory firm, Global
Counsel, from one category to anoth-
er on the Lords register.
CANON APPOINTS 76-YEAR-OLD BOSS
Fujio Mitarai, the 76-year-old chair-
man of Canon, is to resume day-to-day
control of the Japanese camera and
printer maker for the first time in six
years, in a move the company said
was designed to strengthen its leader-
ship during a period of economic tur-
moil.
TESCO RETRACES ITS STREPS ON
CARBON FOOTPRINT LABELLING
Tesco, Britains biggest supermarket
and an early champion of the green
revolution, is to ditch its plan to
emblazon all its products with a car-
bon footprint label because the mes-
sage is too complicated. The move is a
blow to the carbon labelling move-
ment, a relatively recent campaign
designed to encourage consumers to
buy products with a low environmen-
tal impact.
DRUGS GROUPS UNITE TO DESTROY
TROPICAL DISEASES
Deadly tropical diseases such as lep-
rosy, sleeping sickness and guinea
worm could be conquered by the end
of the decade, under a pledge by a
coalition of 13 global drugs compa-
nies brought together by Bill Gates.
Pharmaceuticals chiefs from around
the world promised yesterday to erad-
icate five neglected diseases and to
bring a further five under control.
MAXWELL MAKES WAY FOR PROPERTY
TYCOONS DATA CENRTRE
The property tycoon Peter Beckwith
has promised to rid Milton Keynes of
the monstrous presence of Robert
Maxwell with the redevelopment of a
site once owned by the media mogul.
The investor said that his PMB
Holdings vehicle was investing 35m
in the town as he makes his first foray
into the data centre industry.
LEICESTER SQUARE ODEON SOLD BY
IRISH DEBT AGENCY TO HOTEL GROUP
Irelands National Asset Management
Agency has sold the Leicester Square
Odeon, one of Londons most famous
cinemas, to Radisson Edwardian. The
hotel group is understood to have
paid around 120m (100m) for the
site, which has planning permission
to be redeveloped into a modern two-
screen cinema, 245-bedroom hotel,
restaurants and apartments.
FUEL POVERTY PROTESTERS OCCUPY
BRITISH GAS OFFICES
Fuel poverty activists gained access to
the headquarters of British Gas and
occupied a room near the office of its
managing director, Phil Bentley, for
six hours to protest profiteering by
energy suppliers. Protesters entered
the offices in Staines just before 9am
on Monday, before barricading them-
selves in two meeting rooms.
ROCHE SKIN CANCER DRUG GAINS
APPROVAL
The Food and Drug Administration
approved a new type of drug devel-
oped by the US unit of Roche Holding
to treat advanced cases of basal-cell
skin cancer, the most common type
of skin cancer. The drug, known by its
generic name vismodegib, will be
sold under the brand name Erivedge
and will be marketed in the US by
Genentech. The drug will cost $7,500
for a monthly supply.
CHINA LOSES WTO APPEAL ON RAW
MATERIAL EXPORTS
A World Trade Organisation appeals
panel ruled against Chinas efforts to
limit the export of raw materials
used in the steel and chemicals indus-
tries, a decision that could provide
the US and Europe with ammunition
against similar limits on Chinas rare-
earth exports.
WHAT THE OTHER PAPERS SAY THIS MORNING
Bosses must engage with the media
BANKERS, business people and CEOs
with a small number of exceptions
are proving useless at making their
own case to the media and hence to
the general public. It is frankly pathet-
ic. Few members of our business and
financial elite are willing to talk and
especially not on the record. At best,
they shield behind a few business
lobby groups; at worst, they try and
keep out of things altogether.
Occasionally, they are scathing in pri-
vate but mum in public. The result is a
one-sided debate. Executives argue
that the media will misrepresent them
or not give them enough time to make
their case properly but if they dont
engage, even on imperfect terms, they
will continue to be slaughtered.
Take Stephen Hester, CEO of RBS,
who has been hammered in recent
days. Why doesnt he talk to more jour-
nalists more regularly? Why doesnt he
meet opinion formers to explain to
them how he is unwinding the mis-
takes made by his predecessor to try
and recover the taxpayers investment?
This newspaper, for one, would be
delighted to give him a platform to
present his side of the story and to jus-
tify the remainder of his compensa-
tion package or merely to tell us how
he feels after the ugly vilification he
has been subjected to during the past
few days. We wouldnt print waffly
nonsense under his name that didnt
address substantive points, however.
What business people dont under-
stand is that politics is different to
business. Doing deals behind closed
doors UK Plcs favourite strategy
fails in moments such as these. We are
in full-blown hysteria mode, with the
Labour party and the Liberal
Democrats trying to blame all of the
worlds problems on City pay, and the
media and pressure groups amplifying
these calls. The public is shifting to the
left, with increasing support for the
50p tax, a wealth tax and even a 1970s-
style incomes policy (with quantitative
caps on pay). This is no longer about
fighting rewards for failure a good
policy it is about fighting all rewards
and all high wages across all sectors,
which is very different. Business lead-
ers overwhelmingly believe such
moves would be idiotic, destroy the
UKs competitiveness and mean fewer
jobs and reduced investment yet
almost to a man and woman they
remain silent, subcontracting their
views to cautious industry groups of
varying effectiveness.
With years of weak growth and real
terms public spending cuts ahead of
us, none of this will go away. It will just
get worse. It is crazy that business lead-
ers are refusing to fight back. The
Treasury may say reassuring things to
them in private but you just need a
few tabloid front pages, a push by the
broadcasters and hence a big enough
row for agreements to be torn up. And
by the way, it is right and proper that
politics represents public opinion; lob-
bying behind the scenes is not healthy.
We need a more engaged business
community, with debates out in the
open aimed at convincing the public,
not a secretive culture where shady
operatives try and convince MPs and
civil servants to say one thing to the
public and do another when it comes
to actual legislation.
Businesses arent always right
especially when they want special priv-
ileges, subsidies, bailouts or handouts,
all abhorrent but they arent always
wrong either. They are certainly the
only hope for our future prosperity.
They need to stop moaning privately
about how they are being victimised
and get out and fight their corner.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
FORMER UBS trader Kweku Adoboli
will stand trial in September after
pleading not guilty to charges related
to the loss of more than $2bn (1.27bn)
on trades the Swiss bank says were
unauthorised.
The trial, which is likely to shine a
light on the adequacy of the banks
management and risk controls, could
land Adoboli a maximum 10-year jail
sentence if convicted of the two counts
of fraud and two of false accounting.
His lawyer Paul Garlick said
Adoboli, who worked for the bank as a
director of exchange traded funds in
London, would try to win bail before
the trial starts on 3 September.
The losses led to the resignation of
UBSs chief executive Oswald Gruebel
and a shake-up of its investment arm.
Judge Alistair McCreath said the
case was of such magnitude that
there would have to be a long gap
between the plea hearing and the start
of the trial.
BY HARRY BANKS
COURTS
Autumn trial for Adoboli

Kweku Adoboli denies fraud and false accounting Picture: REUTERS
NEWS | IN BRIEF
Motorists face 100 speed fines
Drivers could see speeding fines lifted to
100 as the government aims to raise an
extra 50m a year to help victims of
crime. Justice secretary Kenneth Clarke
wants more to go to the victims fund, as
part of an overhaul of victim compensa-
tion. The change would mean 60 fines,
handed out to motorists caught using
mobile phones, speeding, and not wear-
ing a seatbelt, could rise to between 80
and 100. The surcharge on fines cur-
rently raises about 10m each year, but
the government spends about 66m on
victim and witness support services.
MF Global said it was strong
An investigation into the collapse of bro-
kerage MF Global had revealed that the
firm's chief financial officer told analysts
at Standard & Poor's that its capital
position had never been stronger, just
a week before it filed for bankruptcy.
MF Global collapsed on 31 October after
investors and customers became rattled
over the firms $6.3bn (4bn) bet on
European sovereign debt. The US
Congress is currently presiding over a
hearing to study the vigilance of the rat-
ing agencies with regards to MF Global.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Commission. The PCC takes complaints about the
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M&Gs CEO Michael
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hoping his firm can
capitalise on the new
BFP scheme
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
MORE than two-thirds of banks in a
Federal Reserve survey of senior loan
officers said they had tightened cred-
it to European financial firms in
January, underscoring the conti-
nents banking crisis.
The survey, published yesterday,
also found US banks snapping up
business from their beleaguered
European competitors, scotching
claims new regulations are hurting
Wall Street competitiveness.
About half of the respondents
who reported competing with
European banks noted such an
increase in business, the Fed stated.
The report also noted more wide-
spread tightening of standards to
non-financial firms that have US
operations and significant exposure
to European economies.
US policymakers are worried that a
freeze in bank lending in Europe
could spill over to the United States,
threatening its own economic recov-
ery.
But the findings painted a compar-
atively benign picture of US credit
markets. Domestic lending standards
were largely unchanged for January,
while loan demand edged upwards.
Meanwhile demand for home equi-
ty loans fell a sign of the housing
sectors persistent weakness.
INSURER Aviva will shed 160 staff
from its fund management business,
with London suffering the bulk of the
cuts, after deciding to focus its efforts
on core operations.
Around 12 per cent of Aviva
Investors global workforce will lose
their jobs during 2012 as the firm cuts
niche investment products following
poor demand for riskier assets during
the financial downturn.
Alain Dromer, chief executive of the
fund management arm, led a strategic
review of the business and has decided
to focus on in fixed income, real estate
and multi-asset investments aimed at
the institutional market.
The changes will eliminate teams
dealing with European, emerging
markets and global equities as well as
a sustainable responsible investments
(SRI) desk.
Greater focus in core areas of
strength would improve profitability
and enable Aviva Investors to continue
to invest in the development of its
global infrastructure, the firm said.
Employees are being consulted and
the firm has said efforts will be made
to redeploy them within the wider
Aviva group.
In a separate development Aviva has
sold its life insurance businesses in the
Czech Republic, Hungary and
Romania to rival Metlife as it contin-
ues its policy of focusing on more prof-
itable territories.
Aviva did not disclose the value of
the sales but said the three businesses
accounted for less than 0.5 per cent of
group profit and had total assets of
57m (47.8m) in June 2011.
Shares in Aviva closed down 3.76 per
cent at 342.7p.
Aviva to cut
jobs in fund
management
COALITION reforms to government
sector pensions will fail to reduce the
burden on taxpayers and will actually
become more generous to some public
sector employees, the Institute for
Fiscal Studies (IFS) has calculated.
Planned changes to pension
schemes will increase the difference
between the public and the private
sectors, the IFS stated this morning,
with low earners in the state sector set
to do even better than their commer-
cial sector counterparts.
Cabinet office minister Francis
Maude recently allowed two trade
unions back to the negotiating table
after an earlier fall-out over the plans.
Yet state employees still have an
advantage over general remuneration,
the IFS said. It will take the whole of
the two-year public pay freeze and two
years of one per cent pay increases to
return public pay to where it was rela-
tive to private sector pay in 2008.
This is because private sector pay
reacted quickly to the recession. Pay in
the public sector did not, it stated.
However, the governments shift to
tying pensions to the CPI (consumer
price index) measure of inflation,
instead of the usually-higher RPI (retail
price index), has reduced costs and
generosity, the IFS added.
Pension overhaul will fail to
lower cost to public, says IFS
Federal Survey shows US banks
are tightening credit to Europe
BY JAMES WATERSON
FUND MANAGEMENT
BANKING
BY JULIAN HARRIS
EMPLOYMENT
News
Francis Maude
has invited trades
unions to resume
talk over pensions
Picture:REX
ANALYSIS l Aviva PLC
p
24Jan 25Jan 26Jan 27Jan 30Jan
360
340
320
300
280
342.7
30 Jan
BANK of America Merrill Lynch has
appointed the Austrian-born former
Lehman Brothers banker Christian
Meissner to head up its investment
banking operations.
Bank of America, which has gradu-
ally taken Merrill Lynch forwards
after a rocky start for the merged
operation, will be hoping that
Meissner can at least consolidate on
recent gains.
Since joining from Nomura in
2010, Meissner has hired widely and
helped take Merrill Lynch up in
some of the much-focused-on league
tables. For example, Merrill has gone
from number 10 to number six in
EMEA investment banking fees and
from 12 to nine in Dealogics latest
mergers and acquisitions table.
Meissner was given the task of
upgrading the talent base in the
investment bank following a wave of
departures after the merger.
He has hired a number of senior
bankers including Adrian Mee, head
of international M&A and Julian
Mylchreest, co-head of global energy
and power.
Although its relative performance
has shown signs of improvement,
Meissner will be expected to make
cost cuts unless market conditions
start to improve quickly.
Like all investment bank,s Merrill
Lynch has been hit by volatile mar-
kets, but already this year the bank
has taken a lead role on one of the
most crucial fund-raisings for some
time, the UniCredit rights issue.
BofA names
investment
banking chief
THE CHIEF executive of RAB Capital
has left the hedge fund manager, it
emerged yesterday, marking the lat-
est chapter in a long saga of tumbling
assets and defecting clients.
Former Credit Suisse executive
Charles Kirwan-Taylor left RAB at the
end of last year, having joined in
September 2010.
Michael Alen-Buckley, executive
chairman of RAB, told City A.M. the
job was no longer big enough for
Kirwan-Taylor following the funds
departure from the stock exchange,
but praised his impact while he was
in the post.
RAB was once the darling of the
industry and counted the Mittal fam-
ily among its investors. It hit prob-
lems in the credit crisis, however,
when its Special Situations fund
invested heavily in illiquid securities
and bought into Northern Rock
before the lender collapsed.
RABs assets under management
stood at $7bn at the end of 2007 but
today they are around $350m. The
Special Situations fund is up nine per
cent this month and its energy fund
up 12 per cent, Alen-Buckley added.
We had significant downsizing
and we have stabilised and we are
quite happy to keep a relatively low
profile, he said.
RAB boss exits
after hedgie
goes private
BY DAVID HELLIER
BANKING
HEDGE FUNDS
News
ITS not often that rival invest-
ment bankers say nice things
about each other, but when news
broke of Christian Meissners
appointment as sole head of
investment banking at Bank of
America Merrill Lynch yesterday
it was greeted with almost uni-
versal approval.
Hes a really good guy, said a
source at Goldman Sachs, where
the Austrian-born Princeton edu-
cated Meissner worked until his
move to Lehman in 2004.
Some of his newer colleagues,
who have worked for him at Bank
of America Lynch since 2010
when he came over to help
rebuild the banks talent
base, describe him as
pragmatic, approach-
able but in possession of
a large amount of
integrity.
Meissner was recruited
by Tom Montag, and will
report to the current
president of global bank-
ing and markets when he
relocates to New York in
the summer.
He commands
considerable loyalty from those
who work for him and, tellingly,
has already brought over some of
his former charges from
Nomura, including Adrian Mee,
Emmanuel Hibou and Antonin
Baladi.
Last April, Meissner was asked
to head up the investment bank-
ing operations with a couple of
co-heads. Now he will be doing it
all alone.
And the trust that the bank
has in its latest promotion is
proved by the fact that for the
first time, its investment bank
will be under the control of a
man who does not have ties to
either Bank of Americas
Charlotte base or to the old
Merrill Lynch.
Meissner has faced
tough times, such
as when he
famously had to
tell Lehmans
European employ-
ees that it was all
over as the bank
faced collapse.
Now he has got
the biggest job of his
life. And everyone
seems to be urging
him on.
BY DAVID HELLIER
BANKING
Nothing but praise for

the new man at the top
CHRISTIAN MEISSNER
ANALYSIS l Bank of America Corp
$
7.40
7.30
7.20
7.10
7.07
30 Jan
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Experience at
THE PHONE THAT DOES I T ALL
EUROSCEPTIC Tory MPs last night
convened in Westminster to plot how
to fight back against the Prime
Ministers perceived U-turn over a
new Eurozone fiscal compact.
David Cameron was hailed last
month for appearing to protect
European Union institutions from
being utilised as part of increased fis-
cal union between euro member
states.
Yet despite describing the EU insti-
tutions as an important protection
for Britain and the single market,
the PM is now unlikely to take action
against members of the fiscal deal
using bodies such as the European
Court of Justice (ECJ).
French President Nicolas Sarkozy
emerged from last nights conference
suggesting that the ECJ would be
involved in the new Eurozone pact.
While Cameron said yesterday the
treaty places no obligations on the
UK, he added that he would not
stand in the way of plans to use EU
institutions.
Our national interest is that these
countries get on and sort out the
mess that is the euro, he said.
Some Conservatives, furious that
such an arrangement has circum-
vented the need for an EU-wide treaty
and a vote in Westminster, have
stepped up calls for a referendum on
Britains membership of the
European Union, accusing senior
ministers and bureaucrats of stitch-
ing up the UK.
This is what happens when you
leave it to ministers and mandarins,
Douglas Carswell MP told City A.M.
You cant just trust them. There
needs to be a push towards a referen-
dum.
Arch-Eurosceptic MEP Daniel
Hannan later endorsed a plan by the
Peoples Pledge group to hold its own
referendum in a range of constituen-
cies in the UK.
Separately, a large group of MPs
met to discuss how best to respond to
developments in Brussels.
Eurosceptic
fury over PM
climbdown
Eurozone leaders are set to use EU institutions for their new pact Picture: REUTERS
BY JULIAN HARRIS
EUROZONE
News
TALKS to agree a haircut and bond
swap with private sector holders of
Greek debt failed again to reach a
conclusion last night, senior
Bundesbank official Andreas
Dombret confirmed.
The euro fell 0.9 per cent against
the dollar to $1.31, and 0.9 per cent
against the yen at 100.55 yen.
Equities also dropped globally.
A deal must be reached by 20
March, when the country faces
repayments of almost 15bn
(12.55bn).
Debt talk delays
pull down euro
EUROZONE
US HOUSEHOLDS saw income

growth accelerate to 0.5 per cent in
the month to December, but cut back
spending by 0.1 per cent in real terms
in the month, the Commerce
Department said yesterday.
Spending is now at its weakest
since June 2011, though economists
were cautiously optimistic that rising
wages will keep supporting demand
through 2012. Despite an expected
recession in the Eurozone, the US
economy is not expected to contract.
US makes cuts
to boost saving
US ECONOMY
STRONG German and

British confidence figures
out yesterday helped sta-
bilise the EUs economic
outlook though other
states are still weakening.
The European
Commissions economic
sentiment indicator rose
0.6 points in the
Eurozone to 93.4 in
January the first rise
since March 2011, though
the index remains well
below the long-term aver-
age of 100.
Germany remains the
only country registering
sentiment above its long-
term average, as the fig-
ure jumped from 104.3 to
10.6.6 this month.
The UK also experi-
enced a large jump, from
88.6 to 93.6, while the EU
nations as a whole rose
from 91.6 to 92.8.
However, sentiment in
Italy fell from 85.4 to 84.3
and in France declined
from 93.5 to 91.4.
Yesterday, French Prime
Minister Francois Fillon
announced the countrys
economy is now expected
to grow by 0.5 per cent in
2012, not the one per cent
previously forecast, while
Spanish GDP figures show
the countrys economic
output fell 0.3 per cent in
the final quarter of 2011.
Investor confidence in
Portugal slumped, with
yields on 10-year bonds
soaring to euro-era highs
of 17.393 per cent.
This surge in yields
reflects growing scepti-
cism that private sector
involvement in debt
restructurings will only
be applied in Greece, said
Capital Economics.
However, Italy sold
2bn (1.67bn) in 10-year
bonds at yields of 6.08 per
cent higher than the fig-
ures seen on secondary
markets last week but
well below the 6.98 per
cent paid on 29
December.
Germany
slows EU
nosedive
BY TIM WALLACE
EU ECONOMY
News
7
THE handling of 9,000 job cuts was a
bigger concern than the decision to
renege on a promise to pay 50m
(41.8m) in bonuses, the chief execu-
tive of Commerzbank told the High
Court yesterday.
Martin Blessing (pictured) said the
redundancies were more important
than the bonus pool at that time and
insisted he acted with honour.
Blessing spent several hours in the
witness box explaining the refusal to
pay out part of the 400m guaranteed
retention pool at Dresdner Kleinwort
investment bank, which was
taken over by
Commerzbank in
January 2009. The
German government
bailed out
Commerzbank during
the financial crisis.
The promises were given
in a totally different situ-
ation. then the eco-
nomic situation deteriorated and
Commerzbank had to take govern-
ment money at the beginning of
November, Blessing said.
We broke our promise because we
thought it was necessary. It was the
right thing to do.
Blessing admitted the decision
eroded trust in the board but said
the bank had to take into account the
interests of shareholders, legal obliga-
tions and public opinion in Germany.
Central to the banks defence is its
decision to invoke a material adverse
change clause as a reason not to pay
up. Blessing said the promises were
not a binding commitment.
If I promise my wife to be home at
8pm for dinner and come in at 9pm I
have not broken a contract.
Commerzbank has run up nearly
4m of legal costs with Linklaters dur-
ing the dispute, said Andrew
Hochhauser QC, representing 21 of the
104 bankers who claim
they are owed 50m
in bonuses. The trial
continues.
Commerzbank
chief: bonus
cut was right
BY PETER EDWARDS
BANKING
News
ECBs long-term bank
loans to top 1 trillion
THE EUROPEAN Central Bank (ECB)
is likely to see demand for its three-
year loans rise to nearly 1 trillion
(840bn) at its next auction, accord-
ing to Credit Suisse analysts.
They suggest that with looser col-
lateral requirements coming into
effect for the next sale of long-term
money, banks will take out 500bn
in loans in addition to the 489bn
borrowed in December.
But the sale will see an increasing
divide between those banks that par-
ticipate and those that dont.
The analysts add that the positive
impact of the long-term refinancing
option (LTRO) will only be around
4.4bn in aggregate by next year
because funding costs are increasing
over the long-term. Spanish and
Italian lenders will pocket most of
the benefit, they estimate.
BY JULIET SAMUEL
BANKING
THE FSA has brought in another sen-

ior investment banker to be an adviser
on its regulation of investment banks.
Will Samuel will be seen as another
poacher-turned-gamekeeper, joining
the regulator to beef up its wholesale
expertise.
Samuel, a vice chairman at Lazard
since 2003, has been in banking 30
years, including stints at Citigroup
and Schroders Salomon Smith Barney.
Chief executive Hector Sants com-
plained yesterday that in the run-up to
the crisis, the regulator had almost
no investment banking expertise in
the FSA and very little risk analysis
expertise.
Sants had previously been head of
wholesale for the regulator, but his job
did not include oversight for any of the
UKs universal banks, which were put
on the retail side of the organisation.
City watchdog boosts
wholesale banking team
REGULATION
Politicians like George Osborne (above) are influencing bank decisions Picture: REUTERS
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CARLOS SANTOS | BREWIN DOLPHIN
Personally I dont think that the politicians have a right to run the
banks. But they definitely have the right to express their opinions
if they might be able to possibly help the banks.
ANTHONY WHITTAKER | NATIXIS
No, definitely not. Politicians arent qualified to make those sorts
of decisions. They will always take into account the political consid-
erations, which might not be best for long-term financial business.
CRAIG MUNDLE | INITIAL FACILITIES
I dont think politicians should be able to run banks, because they
already have so much on their plate! Banks need to sort out their
problems but they cant rely on politicians to help.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: SHOULD POLITICIANS BE
ALLOWED TO RUN BANKS?* Interviews by PhoebeTorrance
ANGRY scenes erupted yesterday
as bailiffs evicted protesters from
two City bank offices.
A 45-year-old man was arrested
on suspicion of criminal damage
and another man was held and
later released. Activists, including
some from Occupy London, were
removed in the early hours from
the so-called Earl Street
Community Centre, which is
believed to be owned by UBS.
Protesters accused bailiffs
Rossendales of punching a pho-
tographer and driving a car
towards the protesters.
A spokesman for the firm said:
One of our officers was asked to
attend the police station and has
provided a statement to police.
This matter was brought to our
attention and is the subject of our
own and police inquiries.
The Metropolitan Police
declined to comment on Occupy
claims of police aggression.
Earlier bailiffs had peacefully
removed the ten remaining peo-
ple from inside the Bank of Ideas,
an empty office which is owned
by Sun Street Properties, a sub-
sidiary of UBS, which declined to
comment.
Separately, protesters camped
outside St Pauls Cathedral will
return to the High Court on 13
February to ask for leave to appeal
against their eviction.
UBS SIGNS OFFICE DEAL: P13
Shutdown of
POLITICS
COMPLETION of Greeces largest bank

merger in decades was thrown into
doubt yesterday after Alpha Bank said
it needs to assess the impact of the
countrys revised sovereign debt swap
scheme before it can join with EFG
Eurobank.
Alpha and EFG Eurobank had agreed
in August to create Greeces biggest
bank, to better cope with the debt cri-
sis.
Alpha Bank casts
doubt on its EFG
Eurobank merger
BANKING
INVESTORS are refusing to hold shares

in RBS because they see it as too politi-
cally risky, a view compounded by
chief executive Stephen Hesters deci-
sion to waive his 1m bonus due to
pressure from politicians, according to
a banking source.
RBSs shares lost 3.5 per cent, or
575m, yesterday, dwarfing the 1m
given up by Hester.
The investment market is highly
suspicious of exactly who is running
that business and whether or not deci-
sions are being taken on a commercial
basis or for political reasons, the
source told City A.M., after having spo-
ken to to dozens of clients who are
investors in the sector.
Its all very well having this mob
running around saying we shouldnt
ever pay a banker again. The reality is
that Hester is a very valuable asset and
hes done a very good job, said the
source, adding: If Hester were to walk
out tomorrow, which I think he would
have every right to do, you would see
billions wiped off RBSs share price.
The whole thing is very stupid.
Bank analysts said Hesters move
had little impact on models, but that
there are political risks associated
with being a shareholder in the bank,
which is 83 per cent taxpayer-owned
after its 45bn rescue in 2008.
Shailesh Raikundlia, banks analyst
at Esprito Santo, said: It seems to be
very closely tied up with whats hap-
pening in politics and, more impor-
tantly, in coalition politics where
Vince Cable wants to stamp his author-
ity on pay. A Treasury spokesman
said the bank is run at arms length
on a commercial basis.
RBS political
risk too much
for investors
BY JULIET SAMUEL
BANKING
News
ANALYSIS l Royal Bank of Scotland
p
28.50
27.50
28.00
27.00
26.50
26.76
30 Jan
MPS ACCUSED the FSA of being wild-
ly dysfunctional in a hearing with its
chief executive yesterday, who blamed
his predecessor for being too cowardly
to stop RBS from buying ABN Amro.
At a session held by the Treasury
Select Committee, FSA chief Hector
Sants was pressed repeatedly on why
he did not stop the disastrous deal
that led to a 45bn bail-out for the
bank.
There was no regulatory basis for
an intervention after the offer docu-
ment was published. I did not have
the power to intervene, said Sants.
But he said that his boss at the time,
former CEO John Tiner, could have
intervened earlier.
Defending his record, Sants grew
animated: At least I had the guts to
consider the issue. I did what nobody
else including the exec chairman
did: to get out there and take a look at
the question. Tiner, he added didnt
even look at it.
But MPs appeared unimpressed at
Sants repeated justification that the
FSA was extremely stretched and
could not do its job properly.
David Ruffley MP said: Youre
painting a pretty staggering picture of
institutional incompetence at the
FSA. Jesse Norman MP called it a
wildly dysfunctional organisation.
MPs slam FSA
as incompetent
on ABN Amro
BANKING
Hesters focus must be banking, not bonuses

AS THE debate over Stephen Hesters
RBS bonus continues, it is easy to for-
get the increasingly powerless chief
executive has a business to run.
One of the most crucial items on
the agenda is the restructuring of the
investment bank, which chancellor
George Osborne effectively called for
in December when he said there
would be big cuts to its activities.
The RBS investment bank employed
25,000 people immediately after the
ill-fated acquisition of ABN Amro and
it is now down to 18,000. With the clo-
sure of certain activities and the sale
of others, the bank will be 15-16,000
people strong going forward. Its prof-
its were 40 per cent down last year.
Hester, probably under the guid-
ance of Osborne and his 83 per cent
shareholder UKFI, has decided to exit
corporate broking and all other equity
related products to follow the model
once pursued by Barclays Capital,
focusing on foreign exchange, interest
rate products and debt markets.
The move away from equity transac-
tions is bound to lead to less focus on
the banks investment banking side.
Thats got to be a plus for RBS manage-
ment, who have found the public spot-
light to be unhelpful of late. Hoare
Govett and its FTSE 100 clients will
soon be off, probably to Jefferies, while
much of corporate finance and cash
equities will be sold or closed.
But there are reasons to worry
about the chances of even the
slimmed-down bank. Such was the
ferocity of the political campaign
against Hesters all-share bonus that it
is inconceivable that investment bank
head John Hourican wont face the
same when his expected 4m shares
bonus is due to be granted in April. If
the bank finds itself unable to reward
its top staff, it will surely lose some of
them.
There is also concern as to whether
ABN Amro and RBS were ever such a
good fit in the first place. One banker
yesterday called it a Frankensteins
monster of an investment bank.
The mood music certainly doesnt
sound good. Hester will need to use all
his powers of persuasion to convince
the top players in whats left that the
business has a future and that he and
they can be part of it. There will be
many who will doubt his words.
While RBC Capital Markets now
seems unlikely to buy any of Hoare
Govett, the Canadian bank hasn't
taken the foot off the pedal in its
recruitment drive for top talent. I have
learned that analyst Richard Rose, one
of the stalwarts of Oriel Securities oil
sector team, is moving to RBC after a
period of gardening leave. Rose, who
always looked as if he was an Oriel
lifer, may get a broader experience at
RBC, with some deal-making activity.
INSIDE TRACK
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(excluding futures)
THE WINNER in the race to advise
Facebook through its highly-anticipat-
ed public offering could earn an excep-
tional low of one per cent of gross
proceeds for managing the flotation.
In their eagerness to bag the deal,
contenders including Morgan Stanley
and Goldman Sachs could agree to
underwrite the IPO for a fraction of
the typical paycheck.
A public offering that raises less
than $500m (318.8m) usually incurs a
seven per cent fee, while an IPO of
more than $1bn could command a fee
of nearer five per cent.
However, at Facebooks speculated
float reaping of $10bn, the chosen
underwriter would still pocket
$100m catapulting it to the top of
the IPO league tables as well as the
prestige of putting its name to the cov-
eted contract.
Morgan Stanley is understood to be
top seed for the prominent deal,
although Facebook is thought to be
taking a dim view of such reports.
Goldman Sachs oversaw the private
sale of $1.5bn of Facebook shares last
year. While this deal attracted unwant-
ed controversy, the advisory firm is
expected to be invited to assist.
Both firms took social gaming com-
pany Zynga through its December
flotation of $10 a share which, like
Groupon, showed disappointing early
trading though both companies are
now trading at roughly their IPO price.
However, Facebooks pattern could
be more akin to that of social network-
ing site LinkedIn which, led by Morgan
Stanley, raised $353m. Shares, which
listed at $45, are now worth over $75.
All three deals earned their under-
writers fees of three to five per cent.
Morgan Stanley was the top tech IPO
adviser in 2011, reaping $2.2bn and an
eleven per cent market share accord-
ing to Thomson Reuters.
Goldman Sachs was close behind
with nine per cent of the market and
fees of $1.9bn.
Banks fight
to advise on
Facebook IPO
BY LAUREN DAVIDSON
TECHNOLOGY
APPLE has regained its place at the top

of the global smartphone shipments
table with almost a quarter of the mar-
ket share, booting Samsung to second
place, according to Juniper Research.
Of the 149m smartphones shipped
in the fourth quarter, 37m were
iPhones, while Samsung followed a few
million handset shipments behind.
Juniper puts Apples success down
to its offer of older iPhone models at
rock-bottom prices in the face of a
range of top-market Samsung phones.
Nokia lagged behind, with ship-
ments down 31 per cent year on year.
Junipers research shows 14.4m
BlackBerry handsets were shipped in
the fourth quarter. A RIM-sponsored
report from GfK, however, said that
BlackBerry was the top-selling smart-
phone in the United Kingdom, averag-
ing just over a quarter of UK sales.
Apple accounts for a quarter of
smartphones shipped globally
TECHNOLOGY
News
Zuckerberg is considering which advisory firm to hire for Facebooks IPO Picture: REX
How to answer the $100bn question
ITS the $80bn question, or maybe
even the $100bn question: just how
much is Facebook worth? To find
the answer, you would normally try
to value the company using tradi-
tional multiples price to sales,
price to earnings and so on and
you would quickly find out that the
valuations being discussed look
ridiculously rich. If you assume it
made $3.8bn of revenues in 2011
and take a valuation of $90bn, that
would but it on a price-to-sales ratio
of 24 times more than any other
tech firm out there (Renren, the so-
called Chinese Facebook, is the next
closest on 17).
Looking at earnings tells differ-
ent story. Facebook is said to have
pulled in ebitda of around $1.9bn
in 2011, giving it remarkable mar-
gins of around 50 per cent. That
puts it on a market cap-to-adjusted-
ebitda ratio of 47 times. Suddenly it
no longer looks so expensive when
pitted against Linked in (127 times)
or Renren (137 times). Of course,
these social networks are over-val-
ued too. Comparing it to Google
(five times), which has the most
compelling business model of any
of the internet companies, tells
another story.
But while we wouldnt buy
shares in the Facebook IPO, those
who claim it will eventually
become a corpse in the graveyard of
dot com failures are just as wrong
as the bulls. Of course, the vast
majority of the companies that
floated during the initial dot com
bubble have fallen by the wayside,
but those who survived Amazon,
Google are huge and growing.
We think Facebook is an
Amazon, but it simply isnt worth
$100bn. Not yet.
BOTTOMLINE
Analysis by David Crow
BLUECREST Capital Management, one
of Europes biggest hedge fund firms,
is looking to raise more than 150m
for a new listed feeder fund into its
computer-driven BlueTrend fund, a
source familiar with the matter said.
The closed-end fund, BlueCrest
BlueTrend, will feed into the
firms main BlueTrend
fund, the company said in
a statement. BlueTrend
manages $13.6bn in
assets and was one of
the industrys top per-
formers during the
financial crisis in 2008.
The computer-driven
unit, which is headed by
Leda Braga, the firms
media-shy head of
systematic trad-
ing, com-
p e t e s
w i t h
t h e
likes of Man Groups AHL unit and
Winton Capitals Futures fund.
So-called managed futures funds
try to make money by latching onto
trends in global futures markets.
BlueTrend was one of the few hedge
funds to profit in a dire 2008 for the
industry, gaining 42.8 per cent. Last
year it made 0.1 per cent, while the
average hedge fund lost 5.02 per cent,
according to Hedge Fund Research.
Winton Capitals main fund gained
6.3 per cent last year while AHL
lost 6.4 per cent.
The main BlueTrend fund has
been shut to new investors for
18 months, but the feeder is
being launched after BlueCrest
created extra capacity by enhanc-
ing the main funds computer sys-
tems.
BlueCrest was set up by Mike
Platt (pictured) and William
Reeves in 2000 and now
manages around
$28.6bn in assets.
Dexion Capital is
advising BlueCrest.
BlueCrest to
raise 150m
for new fund
Bingo! Rank plays Gala card
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RANK Group yesterday confirmed it
is in discussions with Gala Coral
Group about a potential 250m
acquisition of Galas casinos busi-
ness.
The terms of any acquisition have
not yet been finalised, stated Rank,
and there is no certainty that any
transaction will occur. A spokesper-
son for Rank declined to confirm
when talks between the parties first
started, and said an announcement
at Ranks interim results next
Thursday would be unlikely.
A takeover is seen as a logical step
for the FTSE 250 operator, which was
pursuing a strategy of organic
growth for its Grosvenor Casinos
chain before news of the deal broke,
with a target to expand its 35 venues
to 45 by 2015.
Rank had about 55m of net cash
on its balance sheets at the end of
December, giving it headroom to
raise funds to acquire Galas 24 ven-
ues, which would make it the largest
casino operator in the UK.
A source close to Rank said:
Grosvenor and Rank have said for
some time they are interested in casi-
no assets in the UK at the right price.
Panmure Gordon analyst Simon
French, meanwhile, described the
deal as an excellent strategic move.
With no obvious buyer for these
assets, we would be surprised if the
transaction did not happen.
Shares in Rank rose 4.1p to 131.1p
yesterday.
BY HARRY BANKS
ASSET MANAGEMENT
BY HARRIET DENNYS
LEISURE
News
CARNIVAL INSURED FOR CONCORDIA LOSS
Carnival has announced its stricken Costa Concordia cruise ship has a net value of
$490m (312m) and that the firm has insurance coverage of around $510m (324m).
Damage excesses total $40m while the firm self-insures for loss of use.
Picture: REUTERS
REINSURER Lancashire Holdings has
raised its estimated exposure to last
years Japanese earthquake by $42.2m
(26.8m) to a net loss estimate of
$117.3m.
Lancashire said the increase is
mostly related to the companys expo-
sure to one significant cedant, sug-
gesting the firm may be responsible
for a substantial claim from a single
insurer.
The firm has now reserved the full
maximum payment to this client but
emphasises that the total amount is
liable to change.
Lancashire also said that its esti-
mated loss in the fourth quarter to
recent floods in Thailand, after rein-
surance and reinstatement premi-
ums, was $24m to $28m (15.2m to
17.8m).
But the firm revealed it has no
direct exposure to the Thai losses
from Japanese reinsurance treaty
products.
Shares in the company, based in
Bermuda and London, closed down
2.41 per cent at 688p.
Reinsurers have had a particularly
bad year following disasters in Asia.
The Thai floods have been particular-
ly problematic, as it has proved diffi-
cult to quantify the number of
insurance claims and their financial
implications.
Disasters send
Lancashire to
$117m losses
INSURANCE
EVERCORE Partners is representing
Rank Group on the takeover talks, led
by Edward Banks, a senior managing
director of the firms corporate adviso-
ry business.
Banks has form in leisure takeovers
involving Malaysian gaming firms
although he was most recently on the
side of the seller, advising Stanley
Leisure when it was taken over by
Malaysian operator Genting Berhad
for 639m in 2006.
Further high-profile transactions
include advising Telefonica on the sale
of its Airwave network to Guardian
Digital Communications for 2bn in
2007, representing transport business
FirstGroup on its acquisition of
Laidlaw, and advising United
Technologies Corporation on its
622m acquisition of Chubb.
Prior to joining Evercore, the Oxford
graduate was a managing director in
the M&A team at JP Morgan
Cazenove, after working as a manag-
ing director in JP Morgans UK team.
ADVISER: EVERCORE PARTNERS
EDWARD BANKS
EVERCORE
INVESTMENT bank UBS committed

to a future in the City yesterday,
after it finalised a pre-let agreement
to move into British Lands new
Broadgate development.
The deal is the final seal of
approval for the 850m project,
which was last year threatened by an
application for listed status of the
original estate by
c o ns e r v a t i o n
group English
Heritage.
City A.M.
revealed that cul-
ture secretary
Jeremy Hunt had
decided to dis-
miss the applica-
tion in June,
after City execu-
tives and busi-
ness leaders hit
out at the mes-
sage that block-
ing the development would send.
UBS will rent the entire building
on an 18-year lease, paying an initial
rental price of 54.50 per square
foot.
British Land and its Broadgate co-
owner, private equity firm
Blackstone, originally won planning
permission in 2011 to demolish part
of the estate and rebuild a new UK
headquarters for existing tenant UBS.
The property developer said yester-
day construction
on the 700,000
square foot
building behind
Liverpool Street
station is expect-
ed to be finished
by the fourth
quarter of 2014.
Demolition of
the old estate
designed by archi-
tect Peter Foggo
and completed in
the mid-1980s
has already begun.
UBS commits
to Broadgate
development
BY ELIZABETH FOURNIER
PROPERTY
News
Euro woes hit commercial property rent
ECONOMIC troubles in the Eurozone
have knocked the outlook for the sin-
gle currency areas commercial prop-
erty sector, according to new data.
European states dominate the list of
countries in which rents are expected
to fall, as measured by the Royal
Institution of Chartered Surveyors
(RICS) at the end of last year.
Six out of the seven countries with
the lowest rental expectations are
Eurozone members, including core
economies France and Italy.
The survey also highlights the dif-
ference in the developed world
between those countries that largely
shunned the sub-prime credit boom
such as Canada and Germany and
those that participated in it, added
RICSs Simon Rubinsohn. Rents in the
UK and the US are expected to fall dur-
ing the first quarter of 2012.
PROPERTY
www.cityam.com
Issue 1,403 Wednesday 15 June 2011
FREE
+++++++++ VICTORY FOR CITY A.M. CAMPAIGN +++++++++
CULTURE secretary Jeremy Hunt will not save the Broadgate estate from demolition, City A.M. can reveal, marking a victory for our campaign a g a i n s t bureaucrats that wanted to protect the site.
Hunt is expected to a n n o u n c e today that he is rejecting advice from conservation body English Heritage, which recommended that the 1980s complex be awarded with Grade II* listed status.
The move will allow investment bank UBS to press ahead with plans to build a new 340m headquarters
on the site of two buildings that are earmarked for demolition. A source close to the process said Hunt disagreed with English Heritages opinion that Broadgate represented outstanding quality in terms of its architec- ture or historical interest.
The source added the culture secretary had listened to our campaign. His decision was based on the buildings architectural merits and historical factors alone.
The campaign attracted the support of several influential Tories such as Mayor of London Boris Johnson, who described English Heritages call for the site to be listed as ludi- crous.
Lord Wolfson, the Conservative peer and chief executive of retailer
Next, also threw his weight behind our calls for the culture secretary to dismiss the conservation groups advice, warning that unthinking bureaucracy is fossilising the UK. Mark Field, the MP for the Cities of London and Westminster, whose constituency is home to the Broadgate estate, also backed our calls to allow it to be redeveloped. The City of London Corporation had given planning permission for the new 700,000 sq ft UBS building, which is being built by British Land and designed by Ken Shuttleworth, one of the architects behind the Gherkin. English Heritage threatened to scupper the redevelopment, after it said the existing buildings should be listed because they were a triumph of urbanism.
ALLISTER HEATH: P2 Left: How we launched our campaign
BUREAUCRATS LOSE
BROADGATE BATTLE
GEORGE Osborne will tonight endorse plans for British banks to ring-fence their retail operations from th i
plan, which was contained in the Independent Commission on Bankings (ICB) interim report. Under the model, the Treasury will force banks to hive off their high
it withstands financial shocks. In the event of another financial crisis, the theory is the government would be able to bail out the retail b k
endorse one of its recommendations. Although Osborne will back sub- sidiarisation in theory it is still l
banks safer and protect taxpayers Osborne is also expected to empha i h
Osborne to endorse ring-fencing of high street banks BY DAVID CROW
POLITICS
BY DAVID CROW
EXCLUSIVE
278 4053 /$ 1 64 unc / 1 12 001 /$ 146 +001

www.cityam.com Issue 1,396 Monday 6 June 2011 FREE
IPSOS EYES SYNOVATE AEGIS RESEARCH ARM COULD FETCH 500M P3
WHY FUND MANAGERS
MUST LEARN TO LOVE ETFs
ALAN MILLER COMMENT P21
Certified Distribution 04/04/11 - 01/05/11 is 103,899
IS THE UK REALLY OPEN FOR BUSINESS, MR CAMERON? IF SO...
CITY A.M. today launches a campaign against proposals to give listed building status to the Square Miles Broadgate estate, and calls on the government to prove the UK is open for business by rejecting the plans. If the government decides to list the 1980s site then plans to redevelop it into a new headquarters for investment bank UBS will have to be torn up. This would send a message that London is no longer a serious destina- tion for global firms On Friday, English Heritage recommended that the Peter Foggo- designed Broadgate estate should be protected by listed status. The label is normally used to pre- serve historic and architectural treas- ures. It is only ever given to buildings less than 30 years old if they are of outstanding quality.
Current tenant UBS hopes to move into a purpose-built European headquarters on the site of two of the estates buildings, first opened in 1985, with the developers aiming to spend 340m on the project. Despite winning planning permission in April, the sites development has now been jeopardised after English Heritage recommended giving all 13 buildings on the estate Grade II listed status. The architectural watchdog claims that the properties are exemplars of their time and place. City A.M. is campaigning for the new development to go ahead, allowing a global bank to remain in the Square Mile and sending a signal to financial firms around the world that the City welcomes fresh development. The final decision rests with culture secretary Jeremy Hunt, and this newspaper urges the minister to give
priority to the wishes of the sites owners, as well as the needs of the City as a financial hub. In his Budget in March, chancellor George Osborne said the current planning system has held back investment and created distortions in the way that businesses compete, deterring development and growth. For the government to overhaul planning laws in favour of development while allowing a 340m project to stall would be hypocritical. Hunt is expected to announce a final decision by the end of July. Writing in City A.M. today, the City of Londons top executive warns that existing planning laws could prevent London from attracting the worlds top companies. Stuart Fraser (pictured) argues that imposing the same planning and preservation laws on the countrys financial centre as the rest of the country does not take account
of the Citys unique primary purpose as a business district, and that the bureaucratic tangle could push firms away from London. If we truly want to support economic growth the government must not hinder the Citys ability to provide suitable office space for the worlds leading firms and any future legislative proposals must reflect this, he warns. ALLISTER HEATH: P2 MORE: P17
BY MARION DAKERS PROPERTY BROADGATE
DON'T LIST
Culture secretary Jeremy Hunt (left) will dismiss calls for Broadgate (above) to be listed
PADDINGTON BAKER
STREET
BOND
STREET
MARBLE
ARCH
EUSTON
GREEN
PARK
OXFORD
CIRCUS
TOTTENHAM
COURT ROAD
COVENT
GARDEN
LEICESTER
SQUARE
VICTORIA
WESTMINSTER
WATERLOO
EMBANKMENT
ST PAULS
BANK
FULHAM
BROADWAY
MONUMENT
TOWER HILL
LONDON
BRIDGE
CANADA
WATER
CANARY
WHARF
NORTH
GREENWICH
CANNING
TOWN
GREENWICH
STRATFORD
CITY workers have been warned they will bear the brunt of travel disrup-
tion during this summers Olympics, with Bank and London Bridge the two
worst-affected Tube stations. Transport for London commissioner Peter
Hendy yesterday urged Square Mile employees and businesses to consider
alternative routes or working from home, where practical. Mayor Boris
Johnson said extra boats and a wider bike hire network could help those in
Canary Wharf, which has also been designated a public transport hotspot
during London 2012. Frank Dalleres
HOW THE 2012 OLYMPICS WILL AFFECT YOUR COMMUTE
KINGS
CROSS
ST PANCRAS
BUSIER THAN USUAL
KEY
EXCEPTIONALLY BUSY RESTRICTED OPERATIONS Source: getaheadofthegames.com
WEST HAM
CENTRICA yesterday moved to ramp
up its North Sea gas reserves with a
$223m (140m) deal with
ConcocoPhillips.
The British Gas owner is buying a
15.17 per cent stake in the Statfjord
field, taking its share to 34.3 per
cent.
Its investment includes $103m in
historic tax allowances.
The Statfjord field is in the North
Sea between Norway and Britain.
The company has been targeting
oil and gas opportunities in recent
months as it attempts to up its ener-
gy reserves.
Centrica said yesterdays invest-
ment raises its reserves by 36m bar-
rels of oil equivalent.
This acquisition...underlines our
commitment to invest in North Sea
production and secure future energy
supplies for the UK, said managing
director Mark Hanafin.
Last year, Centrica announced a
ten-year gas deal and asset buy from
Statoil as it moved to address declin-
ing UK output.
Centrica ups
its North Sea
oil field stake
OUTSOURCING and energy specialist
Mitie said revenues and earnings had
come in line with expectations in a
trading update yesterday.
The FTSE 250-listed company said
its private sector client sales were
strong, having sealed recent deals
with insurers Friends Life and LV=. In
the public sector it said there were
still contracts being won despite gov-
ernment austerity measures.
We are optimistic about the con-
tinued opportunities for growth for
Mitie, but recognise the wider uncer-
tainties in the global
economy and in cer-
tain of our more cycli-
cal markets, the
company said in
its trading state-
ment, which cov-
ered the firms
performance from
October to date.
The search for
cost and energy effi-
ciencies is a priority
for governments and busi-
nesses across our mar-
kets.
In November Mitie announced rev-
enues had grown 5.8 per cent in the
six months to the end of September,
compared to the equivalent peri-
od of 2010.
The company, led by Ruby
McGregor-Smith (pictured),
said revenue for the half year
hit 971.7m.
The firm, which provides
services like waste manage-
ment, security and energy
efficiency certification for
clients buildings, also
achieved profits before tax of
43.3m, a rise of 17.3 per cent.
Philips swings to
a loss as its sales
tail off in Europe
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PROFITS at electronics group Philips
took a sharp turn for the worse in the
fourth quarter, leading to a loss of
160m (133.9m) compared to gains
of 465m a year earlier.
This contributed to an annual loss
of 1.29bn down from a 1.45bn
profit in 2010 which the Dutch com-
pany put down to operational issues
in its lighting department and sus-
pended orders in its health equip-
ment division, due to tightened
hospital budgets.
Sales in Europe were weak, drop-
ping six per cent on the previous year,
but overall comparable sales
increased three per cent to 6.7bn in
the period and grew to 22.6bn for
the year.
The company said the deal to sell
its struggling TV division, which lost
272m in the fourth quarter, is on
track to close this quarter.
Recovery is not expected to be
quick, with restructuring charges hit-
ting the 120 year old company in the
first half of this year.
While the results were in line with
profit warnings earlier this month,
shares dipped two per cent to 15.23.
BY JOHN DUNNE
ENERGY
MINER Centamin, which operates the

first modern gold mine in Egypt,
more than doubled its fourth-quarter
operating profits and said yesterday it
expects 2012 production to rise by
more than 20 per cent from last year,
with cash costs easing.
Operating profit for the final three
months of 2011 came in at $37.5m
(23.9m), marginally below some ana-
lysts expectations, but up from
$18.4m a year previously.
Centamin said on it expected 2012
production to hit 250,000 ounces, up
more than 20 per cent on 2011.
Centamin profits are doubled as
2012 production forecasts lifted
OUTSOURCING
MINING
RETAIL
News
Centamins
production is
gathering pace
ANALYSIS l Centrica PLC
p
295.00
290.00
292.50
287.50
285.00
282.50
291.50
30 Jan
NEWS | IN BRIEF
New World to launch fundraising
New World Oil and Gas said yesterday it
is launching a fundraising of approxi-
mately $35m (22m) next month. The
company said the funding, subject to
shareholder approval, is based on inter-
est from institutional investors and
lenders.
Wentworth snaps up Cove assets
Wentworth Resources said yesterday it
had agreed a deal to acquire a further
16.38 per cent stake in the Mnazi Bay
gas project in Tanzania from Aim-listed
Cove Energy. The move comes after Cove
put itself up for sale earlier this month.
Wentworth already owns a 25.4 per cent
stake in Mnazi Bay and it has now traded
in its indirect interest in a nearby lique-
fied natural gas project to help it increase
this interest up to 41.78 per cent. The
deal has been valued at $38.8m
(24.7m), according to Wentworth. Cove
will retain 2m Wentworth shares.
Russell Jones & Walker takeover
The UK legal firm Russell Jones & Walker
(RJW) has been taken over by the
Australian company Slater & Gordon in a
53.8m deal that could pave the way for
further acquisitions and flotations in the
sector. Recent reforms of the legal servic-
es market have liberalised ownership
restrictions, making takeovers and flota-
tions possible, although all deals still
require approval from the Solicitors
Regulation Authority. The deal should be
completed by April.
Eurotunnel traffic lifts revenue
Eurotunnel, the operator of the undersea
tunnel linking Britain and France, yester-
day said fourth quarter revenue rose 14
per cent as passenger and freight traffic
increased. Revenue advanced to 217m
(159m) from a restated 190m a year
earlier, the company stated. The number
of passengers rose two per cent to
almost 9.7m in the quarter.
Mitie trading in line as solid
order book fuels confidence
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RYANAIR yesterday raised its annual
profit forecast, after a decision to
ground 80 planes over winter paid off.
The budget airline said its traffic
fell two per cent to 16.7m in the last
three months of 2011, but higher rev-
enues per passenger lifted turnover
13 per cent to 844m (706m).
Ryanairs quarterly after-tax profit
of 14.9m beat forecasts by analysts,
many of whom had expected a loss.
Chief financial officer Howard
Millar put the strong results down to
a benign winter with low de-icing
and cancellation costs, coupled with
a 15 per cent rise in revenue per pas-
senger to 51 a result of the capacity
cut and a rise in customers paying to
reserve seats.
Ryanair increased its full-year net
profit forecast by nine per cent to
480m. The firm also plans to ask
shareholders to approve a buyback of
Nasdaq-listed ADRs, in addition to its
plan to return up to 500m to share-
holders by the end of next year.
But Ryanair warned that its fuel
costs will be 350m higher in 2012,
despite being 90 per cent hedged.
Millar said the firm is planning to
open new bases, and yesterday sent
directors to Barcelona to look into col-
lapsed Spanairs business.
He said talks are ongoing with
Comac, the Chinese manufacturer,
about ordering customised planes,
after Ryanair failed to make a deal
with Airbus. The planes, if ordered,
could have wider doors and fewer
toilets in order to fit 200 seats.
Ryanair lifts
profit target
for the year
BY MARION DAKERS
TRANSPORT
News
ANALYST VIEWS: HOW WERE RYANAIRS
RESULTS? By Marion Dakers
GERT ZONNEVELD | PANMURE GORDON

Numbers came in ahead of expectations. Over the medium term
the anticipated capacity growth deceleration should drive further profit
growth and strong cash generation. We retain our Buy recommen-
dation.
JONATHAN JACKSON | KILLIK

Passenger numbers were down two per cent to 16.7m, offset by
a 17 per cent increase in average fares, driven by capacity cuts and eight
per cent growth in ancillary revenue. Unit costs were down one per
cent excluding fuel, in spite of a two per cent increase in basic pay.
PETER HYDE | LIBERUM

Average fares were better than expected. They were helped by
the industrys desire to fully re-coup recent fuel price increases, Ryanairs
cutting of capacity, the introduction of... charges, and possibly by a
desire to partially close the fare gap with easyJet and BA.
Michael OLeary
has reason to be
cheerful after a
bumper winter
Picture: Micha
Theiner/ CITY A.M.
ANALYSIS l Ryanair Holdings

4.30
4.10
4.20
4.00
3.90
4.19
30 Jan
NEWS | IN BRIEF
Starbucks plans India roll-out
Starbucks will open its first coffee shops in
India in August or September, a year later
than originally planned, and aims to have
50 outlets by year-end through a tie-up
with the Tata group, the country's biggest
business house. Starbucks had initially
planned to have its first cafes in India open
by mid-2011 but was delayed by difficulties
in acquiring real estate and high land costs.
Russia in push for foreign cash
Russia's newest state fund made its first
investment yesterday, buying a stake in
Moscow's MICEX-RTS bourse to boost its
initial public offering hopes and compete
with big international centres like London
for Russian company listings. The $10bn
Russian Direct Investment Fund, which is
government funded but run by private
equity specialist Kirill Dmitriev, is investing
together with the European Bank for
Reconstruction and Development. The pair
are buying a total stake of 7.54 per cent.
Newton-Jones to leave Shop Direct
Mark Newton-Jones, the chief executive of
the UKs largest catalogue and online retail-
er Shop Direct, said yesterday he was plan-
ning to leave the company, but would stay
on until a successor was found. Newton-
Jones said he wanted to pursue new chal-
lenges in the medium term but said he had
no firm plans for his future career.
Quercus boosted by ebook sales
Quercus, publisher of Stieg Larssons popu-
lar Millennium trilogy of books, said yester-
day that its sales of ebooks almost
quadrupled in the run up to Christmas
compared to a year ago. Ebook sales rose
from three per cent to 11 per cent of the
companys total revenues in 2011, with the
film version of The Girl with the Dragon
Tattoo reigniting interest in the titles, which
were among the groups bestsellers.
Revenue from non-Larsson titles rose 83
per cent year on year.
Bacon demand cheers Cranswick
Cranswick posted a 10 per cent increase in
third-quarter sales, helped by demand for
its bacon and fresh pork products, and the
UK pork supplier said it was upbeat about
the rest of the year. Overseas demand
stayed buoyant and sales of pastry prod-
ucts showed progress, the company said in
a statement yesterday. The growing popu-
larity of pork products continues to be a
contributory factor in the increase in sales."
JANUARY is often considered the
most depressing time of the year, yet
a leading index of consumer morale
has surprised economists by reach-
ing a seven-month high during the
opening weeks of 2012.
Softening inflation and lower
energy prices could be behind Brits
reporting a less negative evaluation
of their economic wellbeing, accord-
ing to GfK NOP, which conducts the
research.
The index is sometimes subject to
non-economic influences, and the
uplift may simply reflect a hangover
from the Christmas feel-good factor,
added Nick Moon, managing direc-
tor of the firm.
Despite the four-point uptick in
the index, Moon warned that a simi-
lar boost was observed at the time of
extra bank holidays and sunny
weather surrounding the royal wed-
ding last year only for the index to
sink back down in subsequent
months.
The surveys leading indicator
remains deep in negative territory,
coming in at -29 for January, up from
-33 in December.
Should February show another
rise then we may be seeing signs that
the gloom is dispelling, Moon said.
Until then we should treat
Januarys findings as good, but cer-
tainly not great, news.
Respondents were notably less pes-
simistic about economic prospects
for the coming year, the survey
showed. A sub-index measuring the
general economic situation over
next 12 months bounced back from
Decembers low of -41, coming in at a
less severe -33.
And fewer consumers were found
to be ruling out major purchases, as
the sub-index for measuring this ele-
ment improved to -22, from -31 last
month.
All five sub-indices recorded by
the survey increased on the month.
Morale boost
among British
consumers
BY JULIAN HARRIS
UK ECONOMY
HOUSE prices in England and

Wales remained flat at the
end of last year, according to
government figures released
yesterday.
Yet the data revealed vast
discrepancies between differ-
ent regions, with prices con-
tinuing to rise in London.
While the average cost of a
house in England and Wales
stayed at around 160,000 in
December, the typical price of
a home in the capital jumped
by 0.8 per cent to 345,298.
Compared to December
2010, prices in London have
climbed by 2.8 per cent, the
Land Registry said.
In every other region in
England and Wales, prices fell
compared to one year earlier.
In the south east excluding
London, prices were slightly
down, losing 0.2 per cent, to
an average price of 206,522.
Overall, despite being offset
by price hikes in the capital,
the cost of a home dipped by
1.3 per cent over the twelve
months.
Peter Rollings of estate
agent Marsh & Parsons said
that demand remains strong
in London. While the under-
lying lack of properties com-
ing onto the market may stop
activity in the capital from
rocketing up, the appetite
weve seen from buyers in
January bodes well for ven-
dors in the coming year,
Rollings said.
Strong interest from inter-
national investors and domes-
tic cash buyers, combined
with a limited supply of
prime property, has helped
property in the capital defy
the national trend of house
price falls, he added.
London home prices buck trend
BY JULIAN HARRIS
HOUSING
Licensing Act 2003

Notice of Application for grant of a Premises Licence
NOTICE IS HEREBY GIVEN THAT Herbert Smith LLP,
Exchange House, Primrose Street, London, EC2A 2HS has
applied to the City of London Corporation on 25th January
2012 for the grant of a premises licence to use the premises
Exchange House for the provision of live music between the
hours of 6pm and midnight, the provision of recorded music
between the hours of 8am and midnight, the provision of
dancing between the hours of 8am and midnight, the provision
of late night refreshment between the hours of 6pm and 2am
and the provision of alcohol between 8am and 2am.
The record of this application is held by the Licensing Authority
and can be viewed on the website www.cityoflondon.gov.uk or
inspected at the offices of the City of London Corporation,
Environmental Services (Licensing), Walbrook Wharf, 78-83
Upper Thames Street, London, EC4R 3TD during normal
office hours (Ring in advance for appointment)
Any person wishing to submit representations to the
application must give notice in writing to the Licensing
Authority at the address shown above, giving in detail the
grounds for objection by 24th February 2012
Representations must be received by the Licensing Authority
by the date given above. The Licensing Authority will have
regard to any representations made when considering this
application.It is an offence under section 158 of the Licensing
Act 2003 for anyone to recklessly or knowingly make a false
statement in connection with a licensing application.
The maximum fine on conviction is 5,000.
News
House prices rose in London
NEWS | IN BRIEF
Retailers exceed green promises
Firms are cutting waste at a faster rate
than expected, and making business sav-
ings as a result, a report from the British
Retail Consortium (BRC) argues today.
Retailers had aimed to send less than 15
per cent of waste to landfill by 2013, but
sent only 14 per cent in 2011 well
ahead of schedule. Similarly, they beat
the target of cutting transport emissions
by 15 per cent compared to 2005 emis-
sions by 2013, and managed a 23 per
cent reduction last year. Such efficiency
gains are good for businesses, the BRC
said, claiming that sustainable business
practices will help firms stay competitive.
BoE ups corporate bond sales
The Bank of England increased opera-
tions in the corporate bond markets in an
effort to improve market functioning in
the fourth quarter of 2011, it revealed
yesterday. The Bank buys corporate debt
on the secondary markets in times of
major sell offs, and sells its stock when
necessary, all with the aim of providing
pricing points. Activity was increasingly
driven by deteriorating liquidity condi-
tions in corporate debt markets, the
report said, leading to higher volumes of
sales and purchases compared with the
previous quarter. Dealers had run down
their stocks in the quarter, and when
investor demand grew the Bank supplied
buyers, selling 229m of the 1.1bn it
held at the start of the period.
Pension fund assets hit record
Global pension assets hit a record high of
$28 trillion (17.9 trillion) in 2011, up
four per cent on 2010s figure, a Towers
Watson study said yesterday. Global pen-
sion fund assets have grown at over six
per cent on average each year since
2001. However, liabilities growth out-
stripped asset expansion in 2011.
CAMERA maker Fujifilm has offered
the hand of partnership to Olympus,
which is still reeling from the expo-
sure of its $1.7bn fraud, citing similar
operations in their medical equip-
ment divisions.
Since ex-chief executive Michael
Woodford blew the whistle on
Olympus accounts cover-up, the
Japanese company has been reported-
ly seeking a corporate alliance, seeing
an equity partner as more desirable
than a buyout.
Fujifilm executive vice president
Shigehiro Nakajima said: We consid-
er ourselves the best partner for a busi-
ness tie-up that would allow for main-
taining global competitiveness.
A decision from Olympus is not
expected until a new board is selected
by shareholders in April.
Fujifilm profits were down by over
50 per cent in the third quarter, from
18.1bn yen (151m) to 8.8bn yen.
Sales in the period dropped three
per cent to 451.25bn yen, leading the
company to cut its full-year forecast to
a profit of 28bn yen.
Rival Japanese camera company
Canon yesterday revealed a 14 per cent
increased operating profit of 94.6bn
yen in the fourth quarter, although
operating profits for the year were
down three per cent to 378.1bn yen.
Canon president Tuneji Uchida, 70,
will step down in March to be replaced
by 76 year old current chairman and
chief executive Fujio Mitarai.
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HERES ONE THEY DIDNT PREPARE
EARLIER: GAMES SHOW STALLS
BE PREPARED such an important
quality. Especially when you are
planning a large-scale sporting event
that will bring widespread chaos
sorry, a million extra economy-
boosting visitors to the capital.
But panic not, because the organis-
ers of the London Olympics have got
it all under control with an 8.8m
strategy to help the public avoid the
transport meltdown when the Games
hit London on 27 July.
Or have they? Things were going
swimmingly at the launch of the Get
Ahead of the Games campaign
London mayor Boris Johnson banging
the drum for cyclists; transport secre-
tary Justine HS2 Greening claiming
the government will lead the way
until TfL commissioner Peter Hendy
took to the platform.
Hendy, armed with slides, was all
set to talk the audience through his
PowerPoint presentation on Olympic
travel logistics except the battery on
his laptop was flat and no charger
could be found, prompting compar-
isons from the audience with Twenty
Twelve, the BBCs spoof take on the
bureaucracy of staging the event.
Time for some verbal tips for com-
muters caught in the crush, then.
Instead of leaving the office at 5pm,
why not go for a beer after work and
start your journey at 6.30pm?, sug-
gested Hendy. Why not indeed?
Because, as the Games website
clearly states, hotspots such as Bank
will be exceptionally busy until
8.30pm. Better make that five beers
BIRTH RIGHT
THANKS to David Banks, director of
corporate broking at Seymour Pierce,
who has spotted the amusing resem-
blance between Asil Nadir and the late
actor Alastair Sim.
Sim played at being a villain in
School for Scoundrels and Rogue Male
(though was of course an upstanding
citizen away from the silver screen).
Nadir stands accused of 13 counts of
theft from his firm Polly Peck at the
Old Bailey. Which is, of course, directly
opposite the Seymour Pierce offices.
HIRING SPREE
SIMON Brocklebank-Fowler, the for-
mer CEO of Citigate who left to set up
rival financial PR firm Cubitt
Consulting, is in expansive mood.
Thanks to a string of new business
wins, by June he plans to increase
headcount in his London office from
20 to 25-30 by hiring at all levels,
starting with Nicholas Nelson, who
joins from Hansard to look after min-
ing, energy and technology stocks.
It has been a strong year, says the
chairman of the firm that provides
bespoke advice tailored to individual
companies. There is an analogy
with investment banking, he says.
The smaller boutique investment
banks are prospering, like Jefferies.
The very same Jefferies, that is, that
has Cubitt on a retainer for PR servic-
es in the US and as its agency of
record in the UK.
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
Fujifilm lobs lifeline to fellow
Japanese company Olympus
BEST OF THE BROKERS
ANALYSIS l Whitbread PLC
1,700
1,600
1,650
1,550
1,500
Dec Jan
p 1,641.00
30 Jan
WHITBREAD
Credit Suisse has cut its rating for Premier
Inn and Costa coffee owner Whitbread from
outperform to neutral, saying that down-
side risks at the company are increasing. The
broker expects a two per cent decline in rev-
enue per average room at Premier Inn in
2013, which leaves its earnings per share
estimates seven per cent below consensus.
ANALYSIS l Rio Tinto PLC
3,800
3,400
3,600
3,200
3,000
Dec Jan
p
3,798.50
30 Jan
RIO TINTO
Goldman Sachs has upgraded the mining
group from neutral to buy and raised its
target price fro 4400p to 5000p, to reflect
recent forecast revisions by its Australian
commodities team that affect price assump-
tions. Though BHP Billiton is the brokers top
pick, it has changed its view on Rio after
upgrading its medium-term iron ore prices.
ANALYSIS l Premier Oil PLC
425
375
400
350
Dec Jan
p 412.30
30 Jan
PREMIER OIL
UBS has downgraded the British oil firm
from buy to neutral but maintained its
target price of 430p, saying that although
the outlook is positive the valuation of the
company appears stretched. The firms
shares are up 20 per cent this year, and the
broker says while things are on track, it sees
relatively limited upside from on valuation.
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Fujifilm Holdings Corp

2,020
2,000
1,980
1,960
1,940
1,941
30 Jan
Network Rails David Higgins gets ahead of the Games with Greening, Johnson and Hendy
Separated at birth: comic actor Alastair Sim and under-fire Cypriot tycoon Asil Nadir
City Index Group
The spread betting firm as appointed
Ashraf Laidi as its chief global strate-
gist. Laidi joins City Index from CMC
Markets, where he oversaw the analysis
and forecasting functions of G-10 cur-
rency pairs and advised on FX markets
and global central bank policy.
NewRiver Retail
The UK real estate investment trust has
appointed Charles Miller as an executive
director, effective from 1 April. Miller
moves from Jones Lang LaSalle, where
he was director and head of develop-
ment of the retail property team. He sits
on the advisory board of the British
Council of Shopping Centres and chairs
the Urban Regeneration Committee.
Adrian Lee & Partners
The currency specialist for institutional
investors has hired Jonathan Hayes as
director of global marketing. He joins
AL&P from Stamford Associates, where
he was head of business development
and client services. Prior to that, he was
head of pooled pension business at
Credit Suisse Asset Management.
SWIP
Dr Lucy OCarroll has been appointed as
chief economist at Scottish Widows
Investment Partnership, based in
Edinburgh. OCarroll joins from Lloyds
Banking Group, where she held the role
of senior economist.
Lime Tree
Former Skandia and Cofunds chief exec-
utive Brett Williams has joined the
newly established private equity firm
Lime Tree Investment Partners as a
founder partner. He joins alongside Tim
West and Neil Lewis, formerly at
Babcock & Brown and iShares respec-
tively, and Tim Levy, the founder of
Future Capital Partners.
Alvarez & Marsal
The professional services firm has
appointed Robin Priest as a senior advis-
er in its European real estate advisory
services team. Prior to joining A&M,
Priest was lead partner for real estate
corporate finance at Deloitte, and set up
the property outsourcing firm Mapeley.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
AnaCap Financial Partners
AnaCap, the European financial services
private equity firm, has promoted Justin Sulger
and Fabrizio Cesario (pictured), head of credit
opportunities and head of mergers and acquisi-
tions respectively, to partner. Sulger joined
AnaCap in July 2006 as part of the business serv-
ices team, before expanding the firms risk and lia-
bility management arm. Cesario joined AnaCap in
May 2010 and specialises in advising European
financial institutions and M&A transactions.
News
US stocks falter on
worries over euro
U
S stocks edged lower yesterday
on stalled Greek debt talks, but
an afternoon rally cut losses in
a sign of the underlying
resilience the market has shown early
in the year.
Major indexes had fallen more
than one per cent as negotiations
between the Greek government and
private bondholders over the restruc-
turing of 200bn of debt failed to
reach an agreement before the start
of a summit of European leaders.
But by the afternoon those losses
were cut sharply. Optimism that the
US markets can shrug off Europes
troubles has fuelled gains in 2012,
with the S&P 500 up 4.7 per cent this
month.
The Dow Jones industrial average
dropped 6.74 points, or 0.05 per cent,
to 12,653.72. The Standard & Poors
500 Index lost 3.31 points, or 0.25 per
cent, to 1,313.02. The Nasdaq
Composite Index fell 4.61 points, or
0.16 per cent, to 2,811.94.
Financial shares were hurt the
most by developments in Europe with
the sector losing one per cent.
W
EAKNESS in banks and com-
modity stocks dragged
Britains leading share
index lower yesterday as the
protracted search for a Greek bond
deal and concerns about economic
growth kept investors nervous.
The FTSE 100 index closed down
62.36 points, or 1.1 per cent, at
5,671.09, extending Fridays falls and
retreating further from Thursdays
six-month closing high.
The FTSE volatility index was also
active, up over 10 per cent, its biggest
daily percentage rise in a month and
signalling an increase in risk aver-
sion.
Banks were the biggest blue-chip
casualties, hit by concerns that extra
liquidity injections from central
banks had not addressed the sectors
fundamental problems.
Credit Suisse reduced its recom-
mendation on the European Banking
sector to underweight as it said the
direct earnings impact of the
European Central Banks (ECB) late-
December splurge of cheap, long-
term cash for the banks appeared to
be over-estimated.
Barclays was the UK sectors biggest
faller, down 4.2 per cent, while Lloyds
Banking Group shed 4.1 per cent, and
Royal Bank of Scotland fell 3.5 per-
cent.
EU leaders met in Brussels yester-
day, the first summit of 2012, to sign
off a permanent rescue fund for the
Eurozone Britains biggest trading
partner -- though the meeting was
overshadowed by the unresolved
Greek debt problems.
To avoid a chaotic default, which
could have grave ramifications for
sentiment and financial systems
across the globe, Greece must secure
a deal with its private bond holders
and persuade international lenders it
is serious about reforms.
Banks and miners
hit by Greek jitters
THELONDON
REPORT
THENEW YORK
REPORT
p
31 Oct 18Nov 8Dec 30Dec 20Jan
5,800
5,400
5,500
5,200
5,100
5,300
5,600
5,700
ANALYSIS l FTSE
5,671.09
30 Jan
Educating the public
Why education is
imperative for growth
Worldwide perspectives
A spotlight on global
development
Ethical Considerations
Managing wealth
responsibly
AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
ISLAMIC FINANCE
No. 1 / Jan. 12
James Caan on why he thinks Islamic Finance could have
prevented the global nancial crisis
TRANSFORMING THE
GLOBAL MARKET
3
STEPS
P
H
O
T
O
:
P
R
I
V
A
T
E
2 JANUARY 2012 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
G
lobally, the de-
mand for Islam-
ic nance is clear.
The market for
IFS rose by 10 per
cent to reach US
$1,041 billion by
the end of 2009,taking global assets
above the US$1,000 billion thresh-
old for the rst time: a respectable
outcome in the context of the dif -
cult economic environment.
Banks, Sukuk listings and man-
agement of funds are buttressed
by the UKs uniquely strong infra-
structure of professional support
for Islamic nance transactions.
This consists of more than 20 ma-
jor law rms and many profession-
al service organisations including
the Big Four accounting practices.
All of these have established teams
providing specialist Islamic nance
services covering tax, listings,
transactions, regulatory compli-
ance, management, operations and
IT systems.This extent of expertise
has yet to be seriously rivalled by
any other Western nancial centre.
Sukuks recovered strongly
1
The Sukuk (Islamic notes
that represent an alternative
to conventional bonds) market re-
covered strongly in 2010 with re-
cord issuance of US$50billion.
Whilst there have been defaults,
the impact on the broader market
has not been as extensive as was
feared and quality issuers of
Sukuk continue to attract de-
mand from investors.
Indeed, the London Stock Ex-
change has proven to be an at-
tractive draw for Sukuk issuance.
In the first quarter of 2011, the
number of Sukuk listing at the
LSE totalled 31 with an aggregate
value of US$19billion.
UK leading the way
Bank revenues also picked
up in 2010. The 22 banks in
the UK offering Islamic finance
products now exceed that of any
other Western country. 2010 also
saw the global Islamic fund man-
agement industry increase by 7.6
per cent to US$58 billion, bucking
a relatively flat growth trend of
previous years.
As Islamic finance expands
and the range of products contin-
ues to broaden, there is a grow-
ing global demand for education
and skills. UK institutions are
CHALLENGES
Excellence in Islamic nance
Islamic nance is growing as a source of nance for both Islamic
and other investors around the world. The UK especially London,
is the leading Western centre for Islamic Financial Services (IFS).
It would help if
there were a global
Islamic bank the
size of something
like HSBC, because
that would set the
standard for others
Samer Hijazi
Financial Services
Audit Director,
KPMG London
WE RECOMMEND
PAGE 8
ISLAMIC FINANCE, 1ST EDITION
JANUARY 2012
Managing Director: Chris Emberson
Editorial and Production Manager:
Faye Godfrey
Business Development Manager:
Hannah Butler
Responsible for this issue:
Project Manager:
Soha Suliman
Phone: 020 7665 4418
E-mail: soha.suliman@mediaplanet.com
Distributed with: City AM
Print: City AM
Mediaplanet contact information:
Phone: 020 7665 4400
Fax: 020 7665 4419
E-mail: info.uk@mediaplanet.com
We make our readers succeed!
Mediaplanets business is to create
new customers for our advertisers by pro-
viding readers with high-quality editorial
content that motivates them to act.
today at the forefront of provid-
ing qualifications for the glob-
al industry. Courses in Islamic
finance are now offered by over
thirty professional institutions;
from school level through voca-
tional and career-based qualifi-
cations as well as undergraduate
and postgraduate degrees.
Great promise
With all these factors in
place, the potential for
growth in UK-based IFS is im-
measurable. The UK Financial
Services sector represents a
springboard for global growth
and the partner of choice in the
delivery of Islamic finance excel-
lence. At the UK Islamic Finance
Secretariat, a part of TheCityUK,
our goal is to continue with the
development of strong partner-
ships with other global Islamic
finance centres and to support
the favourable environment for
investment opportunities in Is-
lamic finance.
For more information, please visit
www.thecityuk.com
Keith Phillips
Commercial Director, TheCityUK and
Member of the Board of the UK Islamic
Finance Secretariat (UKIFS)
The 22 banks in the
UK offering Islamic
nance products
now exceed that of
any other Western
country
2
3
Contacts
Nadim Khan
Global Head of Islamic Finance, Dubai
+971 4 428 6305
nadim.khan@herbertsmith.com
Adil Hussain
Finance, Riyadh
+966 1 463 2374
adil.hussain@herbertsmith.com
Hammad Akhtar
Corporate, London
+44 20 7466 2573
hammad.akhtar@herbertsmith.com
Simon Price
Real estate, London
+44 20 7466 2181
simon.price@herbertsmith.com
Herbert Smith LLP is a leading international full-service legal practice with
over 1,500 lawyers and ofces across Europe, the Middle East and Asia.
We are the rm clients turn to with their most complex and critical work.
With our Global Islamic Finance team, we have Islamic nance expertise
throughout the Herbert Smith network including in Dubai, Abu Dhabi,
Hong Kong, Jeddah, London, Moscow, Paris, Riyadh and Singapore ofces.
Our Islamic nance specialists regularly work closely with banks, sponsors,
government entities and corporates on Islamic nancing transactions and
also regularly advise on the structuring of new Islamic products.
Our Islamic nance experts recently advised on several rst of their kind
Islamic nancing transactions including: the multi-sourced receivables based
nancing of the Salik toll road system in Dubai, which included a novel Islamic
tranche; and the structuring, within the UK Alternative Finance Investment
Rules, of a Shariah compliant mezzanine facility for the re-nancing for
5 Canada Square, Canary Wharf, London integrated within a senior, junior
and mezzanine nancing structure.
Islamic nance - how can we help you?
Project Finance Team of the Year
Project Finance Deal of the Year
(Shuweihat 3 IPP)
IFLR Middle East Awards 2011
European Deal of the Year (ITT Sukuk)
Qatar Deal of the Year (QIB Sukuk)
Islamic Finance News Awards 2010
INSPIRATION
Taking account of
Islamic nance
MODEL OF BANKING
Islamic finance offers a
more ethical and less risky
way of doing business, in
line with the principles of
Islamic law
PHOTO: SHUTTERSTOCK
The major issue is the lack of
comparability in nancial report-
ing, says Hijazi. Islamic nance
is spread around the world in the
Gulf, Malaysia and the UK, but
many jurisdictions have specic
local requirements. This often re-
sults in reporting under diferent
nancial frameworks,and it makes
it dif cult to compare Islamic -
nancial institutions one on one.
Standards to abide by
In 1991, the Accounting and Au-
diting Organisation for Islamic
Financial Institutions (AAOIFI)
was established in Bahrain to be
the standard setters of the indus-
try, across several areas including
accounting, governance and au-
diting. However, the AAOIFI
standards have not been adopted
in all countries with Islamic -
nancial institutions. As a result
of this AAOIFI now almost stands
alone as an additional accounting
framework which Sharia-compli-
ant institutions must adhere to,
and which not all actually use.
While international financial
reporting standards are being ad-
opted all over the world,these have
been specically designed for con-
ventional nance,never for Islam-
ic nance, adding a further layer
of complication. Typically, banks
and accountants that work in Is-
lamic nance have had to try to ap-
ply them to products they were not
developed for.This has meant that
diferent accounting treatments
have been applied to some Islamic
nancial instruments producing
varying results.
However, as Islamic nance has
started to develop globally, this
is beginning to change. KPMG is
the auditor to the Islamic Bank of
Britain (IBB), which was the rst
Islamic nancial institution to be
authorised by the FSA in the UK.
Four more Islamic banks soon es-
tablished themselves in the UK
increasing the range of Islamic -
nancial instruments.
Need for growth
The accounting treatment of
those instruments was precedent
setting at the time in the UK. We
had to consult technically with
some of the most senior people
in KPMG, says Hijazi. Going for-
ward, it would help if there were
a global Islamic bank the size of
something like HSBC, because
that would set the standard for
others, but many Islamic banks
are small and regional in compar-
ison. Furthermore, while many
global banks also issue Islamic in-
struments, there is little disclo-
sure around them as they are of-
ten not very material in compari-
son to the rest of the business.
But this is changing. As Islam-
ic nancial institutions develop
greater volume and momentum
around the world there is more de-
mand for consistency in reporting
of their performance.
Islamic finance is not just
about investing reporting its
performance is an important ar-
ea too.According to Samer Hija-
zi, Financial Services Audit Di-
rector at KPMG London, achiev-
ing greater consistency around
reporting for Islamic nance
across the world is a major is-
sue. Indeed, KPMG will be host-
ing a round table with the As-
sociation of Chartered Certied
Accountants (ACCA) in March,
and will be jointly producing a
report on the subject, Harmo-
nising Financial Reporting of Is-
lamic Finance.
VIRGINIA BLACKBURN
info.uk@mediaplanet.com
CHANGE
While many global banks
also issue Islamic instruments,
there is little disclosure around
them as they are often not
very material in comparison to
the rest of the business
Samer Hijazi
Financial Services Audit Director, KPMG London
REAL ESTATE
There are two major issues
when it comes to Sharia-compli-
ant investment in real estate, ac-
cording to Mike Rainey, partner
at King & Spalding. The asset it-
self must be compliant, and while
the building may be, the tenants
may not, he says. Banks are not
compliant and nor are hotels that
sell alcohol, or cinemas. Then
there is the nancing.
One option is a leasing ar-
rangement, in which the bank buys
the property and leases it to the
customer. The customer makes
lease payments to the bank and
when the last payment is made
the property is transferred into his
name. The amount of the rental
is substantially the same as if the
customer had borrowed a loan
and repaid it with interest.
Islamic wealth
management
the spirit
of ethical
entrepreneurship
As Islamic finance
continues to expand,
it is the retail wealth
management sector which
is expected to lead industry
growth. The challenge
is that only a few wealth
management products are
currently available.
There are several unique features
of Islamic nance which diferen-
tiate it from conventional nance.
Sultan Choudhury, Managing Di-
rector of the Islamic Bank of Brit-
ain (IBB) explains, Islamic bank-
ing is ethical its the faith-based
form of ethical banking.
This means that its source of
funding, prots and business in-
vestments cannot be in or from
businesses that are considered
unlawful,i.e.companies that deal
in interest, gambling, pornogra-
phy, tobacco and other commod-
ities contrary to Islamic values.
Interest is considered efortless
prot which means no interest
is received or paid by customers.
Instead Islamic banking is struc-
tured on principles of prot and
risk sharing and entrepreneur-
ship. Rather than paying inter-
est, Islamic banks share prots.
Another big diference is that Is-
lamic banking is asset-based and
asset-backed.
Islamic banks, including IBB,
ensure Sharia compliance by ap-
pointing a Sharia Supervisory
Committee. This is comprised of
Islamic scholars and experts who
oversee the products.
With entrepreneurship as the
guiding spirit of Islamic nance,
IBB has been pioneering Shar-
ia compliant and ethical ways
for consumers to manage their
wealth. Last year it partnered
with Pointon York to accredit a
range of SIPPs as Sharia compli-
ant. It also accredited a Discre-
tionary Platform Service by Prae-
mium as Sharia compliant.
More products need to be de-
veloped but IBB has taken the
rst important steps.The indus-
try as a whole is working with
the UK Islamic Finance Secretar-
iat (UKIFS) to address this, and
other challenges.
VIRGINIA BLACKBURN
Sultan
Choudhury,
Managing
Director, Islamic
Bank of Britain
and Executive
Board Member,
UKIFS
UNDERSTAND
THE BASICS
2
STEP
For further details, please visit:
www.salford.ac.uk/courses/islamic-banking-and-fnance
SALFORD BUSINESS SCHOOL
Islamic Finance Education
in Manchester
MSc Islamic Banking and Finance
Expand your knowledge in this emerging sector of ethical banking
Gain essential skills in this culturally diverse industry
Available as a 12 month full-time programme or in various part-time modes. Flexible delivery. The part-time option allow students to study the programme
modules to suit their current life styles, allowing students to extend the length of the course from the normal 18 month period up to 5 years.
The programme can be delivered on university campus, via distance learning, or organised in-house within companies.
The programme is suitable for: graduates with a minimum 2.2 degree or equivalent background in economics, nance,
accounting, mathematics, business studies or with relevant work experience.
Islamic Finance, with the operation of Shariah-compliant nancial services,
has seen global growth in recent years with more than 260 Islamic nancial
institutions operating and managing assets in the order of 500 billion.
Since the UK Banking crisis of 2008 and the resultant economic downturn,
the credit crunch has been felt worldwide. The Islamic Finance system
promotes accountability, fairness and the principle of Shariah prevents
any nancial transaction engaging with Riba (return on investment/prot).
Interest in Islamic Finance has, therefore, grown exponentially during this
nancial crisis. Despite this growth, there is low awareness of Islamic nance
products in the mainstream marketplace and there is signicant demand to
educate business professions and nancial institutions.
The British Government has committed to supporting the UK to become a
pivotal centre of Islamic Finance (Islamic Finance & Trade Conference, 2008).
Manchester, a leading UK centre for nance, has seen signicant growth
and investment in this area. To continue growth, trained professionals in all
aspects of Finance including Islamic Finance are required to prevent future
irregular risk which has contributed to the global crisis. Committed to
next-generation business education, Salford Business School Manchester,
has an international reputation in nance and accounting, compelling
research expertise in Islamic Finance including the development of nancial
frameworks compliant with Shariah Law, and a distinctive postgraduate
programme in Islamic Banking. The programme, available either as a
one-year full-time course or as an Executive programme offered part-time
over 18 months to 5 years (on-campus, in-company or via distance learning),
provides participants with advanced level skills and knowledge to contribute
to the needs of a growing and sophisticated banking and nance sector and
to provide signicant competitive advantage for business.
Dr. Hussein Abdou, Senior Lecturer in Finance & Banking
MSc Islamic Banking & Finance Programme Director
Salford Business School, Manchester
Email: h.abdou@salford.ac.uk
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Over the last few years, Ber-
muda has become one of the
major hubs for Islamic fi-
nance. In 2009, General Elec-
tric issued a US$500 million
Sukuk, the rst corporation
in the Top 10 Fortune 500 to
do so, structured using a Ber-
muda limited liability com-
pany.This has meant that the
island is now seen as an im-
portant offshore financial
centre for Sharia-compliant
instruments as well as more
traditional ones. We are a
stable jurisdiction with a well
regarded reputation for le-
gitimate investments, says
Cheryl Packwood, Chief Ex-
ecutive of Business Bermuda.
We are the number one cen-
tre for reinsurance and in the
top three for insurance. We
didnt need to change our laws
to provide a jurisdiction to
handle and maintain Islam-
ic products. There is an enor-
mous amount of intellectual
capital on the island, in the
form of fund administrators,
lawyers, accountants, bank-
ers and directors, and Bermu-
da now represents an impor-
tant jurisdiction for takaful
and retakaful.
Promoting growth
Packwood has been travel-
ling to the Gulf for some years
in order to encourage busi-
ness in Bermuda, but she was
building on ties that were al-
ready there.
The former Bank of Bermu-
da, now HSBC Bermuda, has
had a presence in Bahrain for
decades. The Bermudian law
rm Conyers Dill & Pearman
has of ces in Dubai and the
Bermudan Elbow Beach Ho-
tel is Saudi-owned. But such
has been the drive to win Is-
lamic nance business that
Bermuda now far outstrips
all the other ofshore centres
in the region. It alone has is-
sued guidance notes for the
setting up of Islamic funds
and disclosures and the role of
responsibilities of the Sharia
governing board, which were
brought out by the Bermuda
Monetary Authority last year.
Packwood works hard to
maintain the relationship,
travelling to Dubai and Bah-
rain every year since 2008
and attending the World Is-
lamic Banking conference in
November last year. We un-
derstand the culture, she
says. We pooled minds, put
together an Islamic nance
task force and brought clients
to the area.
Belaid Jheengoor, Direc-
tor in the Asset Manage-
ment Practice at Pricewater-
houseCoopers Bermuda, says
that the most popular instru-
ment to be issued from the is-
land is the GE Capital sukuk.
Our customer base comes in
two segments, he says. In
terms of the target market,
the GCC is our primary fo-
cus, but we are also looking
to the growing af uent Mus-
lim population in other parts
of the world, most notably
the UK, France and Canada.
The appeal of these instru-
ments is much broader than
the Muslim demographic: for
some investors, they are seen
as socially responsible.
He also believes that the
global Islamic nance mar-
ket has weathered the glob-
al nancial storm. The glob-
al market for Sukuk was in-
creasing at a signicant rate
until 2007, after which there
was a tail of, he says. But it
picked up in 2010 and by the
end of this year we should see
global issuances exceed the
2007 peak.
Best to invest in Bermuda
NEWS
LOOK AT
FINANCIAL
HUBS AROUND
THE WORLD
3
STEP
VIRGINIA BLACKBURN
The magic of Malaysia
One of the most important
global centres for Islamic -
nance is Malaysia, which is
also the location of INCEIF,
the Global University of Is-
lamic Finance, the only insti-
tution of its type in the world,
which was set up in 2006.The
rst Islamic bank,Bank Islam
Malaysia (now simply Bank
Islam) was established there
in 1983, followed by Takaful
Malaysia in 1984.
Setting the standards
The regulatory framework
has also helped establish Ma-
laysia as a centre for Islam-
ic nance, says Daud Vicary
Abdullah, President and CEO
of INCEIF. The Islamic Bank-
ing Act of 1983 was followed
by the Takaful Act in 1984. In
1994 the sector was liberal-
ised by allowing conventional
banks to set up Islamic win-
dows. International players
entered the market, includ-
ing Kuwait Finance House,
Al-Rajhi and Asian Finance.
A strong Sharia and govern-
ance framework was also es-
tablished via the Apex Shar-
ia body at the Central Bank of
Malaysia and the Sharia Advi-
sory Council at the Securities
Commission Malaysia.
Central hub
Malaysia has the largest
Sukuk market in the world
with a 65 per cent share
US$96 billion in 2010 and
an Islamic interbank money
market (IIMM) established
in 1994 and hosted by BNM.
Malaysia is also home to the
Islamic Financial Services
Board (IFSB) the inter-
national standards setting
agency for institutions ofer-
ing Islamic nancial services.
In 2010, the Internation-
al Islamic Liquidity Man-
agement Corporation (IILM)
was set up to facilitate effi-
cient management of liquid-
ity by Islamic financial insti-
tutions in the international
financial system.
The launch of the Bloom-
berg-AIBIM-Bursa Malaysia
Sovereign Sharia Index (BMS-
SI) in early 2011 marked an-
other signicant milestone in
the development of the glob-
al Sukuk market. The estab-
lishment of the Thomson Re-
uters Ideal Ratings Islamic
Indices in June 2011 was the
rst Islamic benchmark that
ofers research-based Shariah
screening based on globally
accepted standards to inves-
tors,money managers and an-
alysts across a range of Islam-
ic instruments.
Education as key
Unsurprisingly,it is also a cen-
tre of excellence in education.
Most universities in Malay-
sia, either public or private,
provide a wide spectrum of
formal Islamic nance edu-
cation, beginning with Di-
ploma, Degree, Master right
up to Ph.D. level, says Daud
Vicary Abdullah. For exam-
ple, the Universiti Utara Ma-
laysia (UUM) has established
Islamic School of Business
which ofers degrees at un-
dergraduate as well as at Mas-
ters level. The International
Islamic University Malaysia
(IIUM) has the Institute of
Islamic Banking & Finance
which provides formal edu-
cation for undergraduate and
graduate levels and IIUMs
Graduate School of Manage-
ment ofers MBA with spe-
cialisation in Islamic Bank-
ing. INCEIF itself ofers a
Chartered Islamic Finance
Professional (CIFP) qualica-
tion, a Masters in Islamic Fi-
nance, a Ph.D. in Islamic Fi-
nance and Research, Consul-
tancy and Executive Training.
VIRGINIA BLACKBURN
Question: Is there an
offshore nancial centre
that specialises in Islamic
nance?
Answer: Yes, the island
of Bermuda, which is
emerging as a global centre
of excellence in the area.
Question: What was
one of the rst international
locations to be set up as a
hub for Islamic nance?
Answer: Malaysia, in
particular Kuala Lumpur,
which is now one of the
most advanced Islamic
nance sectors in the world.
Daud Vicary
Abdullah
President and
CEO of INCEIF
Belaid
Jheengoor
Director in Asset
Management,
PWC Bermuda
Cheryl
Packwood
Chief Executive,
Business
Bermuda
IMPRESSIVE SKYLINE
The Petronas Towers in
Kuala Lumpur are the
tallest twin buildings in
the world and dominate
the citys skyline
PHOTO: SHUTTERSTOCK
IDYLLIC SETTINGS
The island of Bermuda
is a suprisingly active
outpost for Islamic
finance
PHOTO: SHUTTERSTOCK
PROFESSIONAL INSIGHT
Islamic nance could have
averted the global meltdown
As the dust continues to settle in
the wake of the global nancial
crisis, there is a growing percep-
tion that had the tenets of Islam-
ic nance been more widespread,
the damage to the global econo-
my would have been nothing like
as bad.
Entrepreneur and former drag-
on on BBCs The Dragons Den James
Caan, who founded the Hamil-
ton Bradshaw private equity rm
thinks so: If you look at the basic
principles of Sharia-compliant in-
vestment, you see that it doesnt
pay interest, but takes a share of
the prots, he says. That means
there must be some underlying
protability in the investment,
whereas the crisis was caused by
highly complex derivative prod-
ucts often far removed from the
underlying assets. Had Sharia
principles been more widespread,
the crisis would not have been as
catastrophic and would have been
easier to manage.
Crisis worse in the West
Indeed, following Sharia-compli-
ant principles,some of those toxic
assets would never have existed in
the rst place.If you look at coun-
tries that use Islamic nance, the
crisis is not as severe as it is in the
West, he says. The investment is
in an underlying security, such as
property or commodities,which is
easy to understand, whereas with
highly leveraged complex nan-
cial instruments, the underlying
quality is questionable. There is
also the question of transparency.
The credit agencies were giving
all these junk bonds AAA ratings,
whereas under Sharia, there is a
far greater system of checks and
balances.
Financial discipline
While he doesnt believe that all
Western financial institutions
will adopt Islamic finance as
such, Caan does believe that they
could learn a lot from Sharia-com-
pliant methods. There is a ques-
tion of nancial discipline, of rec-
ognising the importance of the
quality of the underlying assets
and their robustness to generate
sufcient returns to make nance
repayments sustainable, he says.
This is a conservative view of
building wealth.
Strengthening Trust
Any budding entrepreneurs wish-
ing to raise funds from the Middle
East should take that diferent ap-
proach on board, according to Nick
Judd, Founder Partner of 90 North,
the investment rm specialising
in Sharia compliant real estate, of
which James Caan is Chairman.
The Middle East is risk-averse, he
says. Business relations are based
on trust and can take a long time to
build. You cant raise money quick-
ly it takes months, if at all. People
also want to see businesses with an
established management whom
they can trust.
In the Middle East, you have
to be introduced the prospect
of cold calling is no good, adds
James Caan. If you want access,
it is less about transactions, and
far more about relationships. In
the West, you produce a business
plan, have a meeting and expect
a response, but that will not work
in the Gulf.Your approach must be
very diferent from the West.
Question: Is Islamic nance
a more cautious approach
to investing than traditional
Western methods?
Answer: Yes, if the
principles had been more
widely adopted, it could have
stopped the recent nancial
catastrophe.
VIRGINIA BLACKBURN
CHANGE
Had Sharia
principles been more
widespread, the crisis
would not have been
as catastrophic and
would have been
easier to manage
James Caan, Entrepreneur and Founder of
Hamilton Bradshaw
90 North Real Estate
Partners, based in Mayfair,
is a specialist in Sharia-
compliant real estate
investment. In partnership
with James Caan, fellow
Founder Partners Philip
Churchill and Nicholas
Judd have concluded
approximately 1.1billion
of Sharia compliant
transactions over the last
decade.
The organisation establishes an
investment strategy, then leads
the purchase process, covering
all aspects of achieving a success-
ful real estate acquisition,includ-
ing due diligence,nancing,legal
and tax, all as part of an efcient
and Sharia compliant structure.
Islamic assets under manage-
ment are rapidly approaching a
$1trillion worldwide and I expect
this to continue growing strongly
- not just due to the rapid growth
of the global Muslim population
but the increasing sophistica-
tion of Islamic nance, relative
security of assets and parity of re-
turns available compared to con-
ventional investment products,
says Caan.
VIRGINIA BLACKBURN
SHOWCASE
PROMOTING GROWTH
Left: Entrepreneur James
Caan at the UCI Qatar
Investor Conference.
He believes Western
financial institution could
learn a lot from Sharia-
compliant methods
PHOTO: PRIVATE
UNCOVER SHARIA
COMPLIANT
OPPORTUNITIES
COMPLETE WORKFLOW SOLUTIONS FROM THOMSON REUTERS.
Thomson Reuters is proud to have been at the heart of Islamic banking since
the rst commercial Islamic bank was established in 1975. A trusted partner
to many international clients, we deliver unrivalled market data and transaction
solutions, as well as all supporting legal, compliance and risk infrastructure
required. We provide the structure that enables real-time transactions in
Islamic interbank and equity markets.
Let Thomson Reuters help you uncover more opportunities in Islamic
markets. Visit nancial.thomsonreuters/islamicnance or email
islamic.nance@thomsonreuters.com for more information.
LON GD ONCE FIX AM...........1720.50 -1.50
SILVER LDN FIX AM ..................33.56 -0.27
MAPLE LEAF 1 OZ ....................36.17 2.50
LON PLATINUM AM................1601.00 -12.00
LON PALLADIUM AM...............681.00 -4.00
ALUMINIUM CASH .................2241.00 9.50
COPPER CASH ......................8609.50 54.50
LEAD CASH...........................2287.00 10.50
NICKEL CASH......................21665.00 320.00
TIN CASH.............................24305.00 980.00
ZINC CASH ............................2215.00 37.00
BRENT SPOT INDEX ................111.33 0.18
SOYA .....................................1187.50 -31.50
COCOA..................................2283.00 -123.00
COFFEE...................................215.80 -1.55
KRUG.....................................1798.40 6.10
WHEAT ....................................164.38 -0.38
AIR LIQUIDE........................................94.81 -0.37 100.65 80.90
ALLIANZ..............................................83.36 -2.21 108.85 56.16
ANHEUS-BUSCH INBEV ....................46.60 0.00 48.63 33.85
ARCELORMITTAL...............................15.69 -0.67 28.55 10.47
AXA......................................................11.55 -0.41 16.16 7.88
BANCO SANTANDER...........................5.98 -0.17 9.00 4.94
BASF SE..............................................59.81 -0.67 70.22 42.19
BAYER.................................................53.03 -0.37 59.44 35.36
BBVA......................................................6.74 -0.16 9.17 4.94
BMW ....................................................64.55 -0.05 73.85 43.49
BNP PARIBAS.....................................32.18 -2.47 59.93 22.72
CARREFOUR ......................................17.52 -0.75 31.98 14.66
CRH PLC .............................................14.99 -0.32 17.40 10.28
DAIMLER.............................................42.35 -0.36 57.22 29.02
DANONE..............................................46.72 -0.22 53.16 41.92
DEU.BOERSE OFFRE ........................44.59 -0.91 55.75 35.46
DEUTSCHE BANK..............................32.26 -1.26 48.70 20.79
DEUTSCHE TELEKOM.........................8.72 -0.04 11.38 7.88
E.ON.....................................................16.19 -0.20 25.02 12.50
ENEL......................................................3.12 0.00 4.86 2.78
ENI .......................................................16.84 -0.02 18.66 11.83
FRANCE TELECOM............................11.34 -0.08 16.65 11.09
GDF SUEZ ...........................................20.44 -0.33 30.05 17.65
GENERALI ASS...................................12.21 -0.21 17.05 10.34
IBERDROLA..........................................4.50 -0.06 6.10 4.16
INDITEX ...............................................67.07 -0.04 69.40 50.92
ING GROEP CVA...................................6.71 -0.27 9.50 4.21
INTESA SANPAOLO.............................1.42 -0.03 2.47 0.85
KON.PHILIPS ELECTR.......................15.24 -0.35 24.12 12.01
L'OREAL..............................................81.44 0.32 91.24 68.83
LVMH..................................................121.00 -1.55 132.65 94.16
MUNICH RE.........................................99.43 -1.42 126.00 77.80
NOKIA....................................................3.76 -0.16 8.49 3.33
REPSOL YPF.......................................21.51 -0.34 24.90 17.31
RWE.....................................................29.15 0.34 53.86 21.15
SAINT-GOBAIN...................................33.72 -0.94 47.64 26.07
SANOFI ................................................56.19 0.36 57.42 42.85
SAP......................................................45.87 0.12 46.15 32.88
SCHNEIDER ELECTRIC.....................46.84 -0.93 61.83 35.00
SIEMENS .............................................72.26 -0.54 99.39 62.13
SOCIETE GENERALE.........................19.71 -1.36 52.70 14.32
TELECOM ITALIA..................................0.78 -0.00 1.16 0.70
TELEFONICA ......................................13.25 -0.07 18.75 12.50
TOTAL..................................................39.81 -0.28 44.55 29.40
UNIBAIL-RODAMCO SE...................147.00 0.15 162.95 123.30
UNICREDIT............................................3.56 -0.09 13.34 2.20
UNILEVER CVA...................................25.53 0.16 27.16 20.90
VINCI ....................................................35.36 -0.96 45.48 28.46
VIVENDI ...............................................15.85 0.05 21.86 14.10
VOLKSWAGEN VORZ ......................136.80 0.35 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5671.09 -62.36 -1.09
FTSE 250 INDEX . . . . . . . 10694.17 -160.55 -1.48
FTSE UK ALL SHARE . . . . 2925.65 -33.21 -1.12
FTSE AIMALL SH . . . . . . . . 759.12 -4.64 -0.61
DOWJONES INDUS 30 . . 12653.72 -6.74 -0.05
S&P 500 . . . . . . . . . . . . . . . 1313.02 -3.31 -0.25
NASDAQ COMPOSITE. . . . 2811.94 -4.61 -0.16
FTSEUROFIRST 300 . . . . . 1030.43 -10.26 -0.99
NIKKEI 225 . . . . . . . . . . . . . 8793.05 -48.17 -0.54
DAX 30 PERFORMANCE. . 6444.45 -67.53 -1.04
CAC 40 . . . . . . . . . . . . . . . . 3265.64 -53.12 -1.60
SHANGHAI SE INDEX . . . . 2285.04 -34.08 -1.47
HANG SENG. . . . . . . . . . . 20160.41 -341.26 -1.66
S&P/ASX 20 INDEX . . . . . . 2573.50 0.00 0.00
ASX ALL ORDINARIES . . . 4334.40 0.00 0.00
BOVESPA SAO PAOLO. . 62770.01 -134.19 -0.21
ISEQ OVERALL INDEX . . . 2989.72 -17.82 -0.59
STRAITS TIMES . . . . . . . . . 2888.29 -27.97 -0.96
IGBM. . . . . . . . . . . . . . . . . . . 855.26 -14.11 -1.62
SWISS MARKET INDEX. . . 5970.74 -62.78 -1.04
Price Chg %chg
3M........................................................87.34 -0.12 98.19 68.63
ABBOTT LABS ...................................54.47 -0.55 56.84 45.07
ALCOA ................................................10.32 -0.11 18.47 8.45
ALTRIA GROUP..................................28.39 0.25 30.40 23.20
AMAZON.COM..................................192.15 -3.22 246.71 160.59
AMERICAN EXPRESS........................49.12 -0.73 53.80 41.30
AMGEN INC.........................................68.33 -0.01 69.63 47.66
APPLE...............................................453.01 5.73 454.45 310.50
AT&T....................................................29.34 0.18 31.94 27.20
BANK OF AMERICA.............................7.07 -0.22 14.95 4.92
BERKSHIRE HATAW B.......................78.69 -0.73 87.65 65.35
BOEING CO.........................................74.16 -0.39 80.65 56.01
BRISTOL MYERS SQUI ......................32.25 -0.04 35.44 20.05
CATERPILLAR..................................110.41 -0.87 116.55 67.54
CHEVRON.........................................103.41 -0.55 110.99 86.68
CISCO SYSTEMS................................19.56 0.00 22.34 13.30
CITIGROUP.........................................30.23 -0.64 49.60 21.40
COCA-COLA.......................................67.46 0.02 71.77 61.29
COMCAST CLASS A..........................26.36 0.03 27.16 19.19
CONOCOPHILLIPS.............................68.72 -0.68 81.80 58.65
DU PONT(EI) DE NMR........................50.97 0.25 57.00 37.10
EXXON MOBIL....................................85.49 -0.34 88.23 63.47
GENERAL ELECTRIC.........................18.90 -0.13 21.65 14.02
GOOGLE A........................................577.69 -2.29 670.25 473.02
HEWLETT PACKARD.........................27.88 0.00 49.39 19.92
HOME DEPOT.....................................44.77 -0.10 45.50 28.13
IBM.....................................................192.50 2.04 194.90 151.71
INTEL CORP .......................................26.74 0.01 27.00 19.16
J.P.MORGAN CHASE.........................37.01 -0.20 48.36 27.85
JOHNSON & JOHNSON.....................65.71 0.15 68.05 55.76
KRAFT FOODS A................................38.18 -0.29 39.00 24.30
MC DONALD'S CORP ........................98.69 0.00 102.22 72.89
MERCK AND CO. NEW......................38.89 0.37 39.43 29.47
MICROSOFT........................................29.61 0.38 29.95 23.65
OCCID. PETROLEUM.........................99.62 -0.63 117.89 66.36
ORACLE CORP...................................28.60 0.18 36.50 24.72
PEPSICO.............................................65.41 -0.40 71.89 58.50
PFIZER ................................................21.58 0.10 22.17 16.63
PHILIP MORRIS INTL .........................74.90 -0.56 79.96 56.46
PROCTER AND GAMBLE ..................63.21 -1.09 67.72 56.57
QUALCOMM INC ................................58.63 0.84 59.84 45.98
SCHLUMBERGER ..............................76.27 -0.39 95.64 54.79
TRAVELERS CIES ..............................58.11 0.06 64.17 45.97
UNION PACIFIC.................................114.64 -0.26 115.81 77.73
UNITED TECHNOLOGIE ....................77.61 -0.01 91.83 66.87
UPS CLASS B.....................................76.15 0.11 77.00 60.74
VERIZON COMMS ..............................37.61 0.40 40.48 32.28
WAL-MART STORES..........................61.30 0.59 62.00 48.31
WALT DISNEY CO ..............................38.99 -0.26 44.34 28.19
WELLS FARGO & CO.........................29.25 -0.35 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.282 0.00
LIBOR Euro - 12 months ................1.737 0.00
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................1.097 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................2.960 -0.10
European repo rate.........................0.243 0.00
Euro Euribor ....................................0.404 0.00
The vix index ...................................19.66 1.13
The baItic dry index ........................726.0 -27.0
Markit iBoxx...................................243.87 1.22
Markit iTraxx..................................140.71 0.11
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .310.8 -4.8 356.5 248.1
Chemring Group . . . .379.9 -7.4 736.5 368.8
Cobham . . . . . . . . . . .179.7 -3.1 236.5 165.9
Meggitt . . . . . . . . . . . .359.4 -9.1 397.6 304.9
QinetiQ Group . . . . . .130.8 -1.2 137.4 101.5
RoIIs-Royce HoIdi . . .733.0 -5.5 769.0 557.5
Senior . . . . . . . . . . . . .179.9 -2.6 190.6 132.6
UItra EIectronics . . .1515.0 5.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .207.7 -2.1 245.0 157.0
BarcIays . . . . . . . . . . .213.6 -9.3 333.6 138.9
HSBC HoIdings . . . . .527.5 -13.6 730.9 463.5
LIoyds Banking Gr . . .31.1 -1.3 69.3 21.8
RoyaI Bank of Sco . . .26.8 -1.0 49.0 17.3
Standard Chartere .1543.0 -45.0 1712.5 1169.5
AG Barr . . . . . . . . . .1220.0 -10.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .343.5 -1.1 455.6 289.9
Diageo . . . . . . . . . . .1418.0 6.5 1428.0 1112.0
SABMiIIer . . . . . . . . .2416.5 -4.5 2449.0 1979.0
AZ EIectronic Mat . . .298.0 -2.5 338.1 206.1
Croda Internation . .1914.0 -21.0 2081.0 1456.0
EIementis . . . . . . . . . .150.2 -0.8 187.4 107.5
Johnson Matthey . .2021.0 -34.0 2119.0 1523.0
Victrex . . . . . . . . . . .1265.0 4.0 1590.0 1025.0
YuIe Catto & Co . . . . .194.3 -2.2 253.0 148.0
C/$ 1.3130 0.0022
C/ 0.8369 0.0016
C/ 100.17 1.3379
/C 1.1948 0.0024
/$ 1.5687 0.0005
/ 119.70 1.8372
FTSE 100
5671.09
62.36
FTSE 250
10694.17
160.55
FTSE ALLSHARE
2925.65
33.21
DOW
12653.72
6.74
NASDAQ
2811.94
4.61
S&P 500
1313.02
3.31
RPC Group . . . . . . . .376.5 -3.4 392.0 231.5
Smiths Group . . . . . .952.0 -21.0 1429.0 869.5
Brown (N.) Group . . .229.4 -4.9 304.5 227.0
Carpetright . . . . . . . . .617.5 7.5 770.5 375.0
Debenhams . . . . . . . . .66.5 -0.5 74.8 51.2
Dignity . . . . . . . . . . . .797.0 0.5 854.5 648.5
Dixons RetaiI . . . . . . .15.2 0.2 22.3 9.4
DuneImGroup . . . . . .467.3 -14.9 524.5 383.9
HaIfords Group . . . . .316.8 -1.2 411.4 268.6
Home RetaiI Group . . .98.9 -2.4 235.0 72.5
Inchcape . . . . . . . . . .336.1 -8.6 425.4 268.1
JD Sports Fashion . .724.0 9.0 1030.0 570.0
Kesa EIectricaIs . . . . .68.8 -2.3 151.4 60.2
Kingfisher . . . . . . . . .251.8 -4.0 287.1 217.0
Marks & Spencer G . .323.1 -8.9 402.2 301.8
Next . . . . . . . . . . . . .2625.0 -14.0 2810.0 1868.0
Sports Direct Int . . . .238.1 0.3 266.2 159.0
WH Smith . . . . . . . . . .541.0 -11.5 558.0 433.8
Smith & Nephew . . . .612.5 0.0 742.0 521.0
Synergy HeaIth . . . . .860.0 -1.0 981.0 808.0
Barratt DeveIopme . .107.6 -2.4 119.0 67.5
BeIIway . . . . . . . . . . . .732.5 -0.5 776.5 540.5
BerkeIey Group Ho .1243.0 13.0 1360.0 884.5
BaIfour Beatty . . . . . .273.3 -6.1 357.3 214.6
CRH . . . . . . . . . . . . .1253.0 -26.0 1700.0 1053.0
GaIIiford Try . . . . . . . .475.0 5.0 530.0 309.0
Kier Group . . . . . . . .1355.0 -29.0 1458.0 1097.0
Drax Group . . . . . . . .532.0 5.5 581.5 371.9
SSE . . . . . . . . . . . . . .1209.0 -1.0 1423.0 1159.0
Domino Printing S . .605.0 -10.0 705.0 434.3
HaIma . . . . . . . . . . . . .349.5 -4.9 429.6 306.3
Laird . . . . . . . . . . . . . .163.0 -5.0 207.0 127.9
Morgan CrucibIe C . .309.7 -7.9 357.1 224.0
Oxford Instrument . .905.5 -6.0 1010.0 600.5
Renishaw . . . . . . . . .1369.0 11.0 1886.0 800.0
Spectris . . . . . . . . . .1500.0 -43.0 1679.0 1039.0
Aberforth SmaIIer . . .576.0 1.0 714.0 494.0
AIIiance Trust . . . . . .355.3 -3.7 392.7 310.2
Bankers Inv Trust . . .392.9 -2.2 428.0 346.5
BH GIobaI Ltd. GB .1150.0 15.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.4 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.6 -0.2 20.2 16.3
BH Macro Ltd. GBP 2035.0 9.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.4 0.0 20.2 16.2
BIackRock WorId M .697.0 -16.0 815.5 574.5
BIueCrest AIIBIue . . .162.8 -0.6 176.2 162.4
British Assets Tr . . . .120.8 -1.1 139.5 109.0
British Empire Se . . .435.0 1.8 533.0 404.0
CaIedonia Investm .1461.0 -4.0 1825.0 1337.0
City of London In . . .284.0 -3.5 306.9 257.0
Dexion AbsoIute L . .138.7 0.0 151.0 130.0
Edinburgh Dragon . .236.6 -0.4 252.0 201.4
Edinburgh Inv Tru . . .470.4 -4.6 492.2 414.9
EIectra Private E . . .1457.0 1.0 1755.0 1287.0
F&C Inv Trust . . . . . .296.1 -2.7 327.9 261.5
FideIity China Sp . . . . .79.5 -1.5 114.3 70.0
FideIity European . .1046.0 -13.0 1287.0 912.0
HeraId Inv Trust . . . . .481.0 0.8 545.5 419.0
HICL Infrastructu . . . .117.7 -0.1 121.3 112.7
Impax Environment . .98.0 -2.6 125.9 88.5
John Laing Infras . . .108.8 0.0 109.6 103.4
JPMorgan American .892.0 -10.0 924.0 721.5
JPMorgan Asian In . .196.4 -3.2 244.0 170.1
JPMorgan Emerging .548.0 -10.0 610.5 480.1
JPMorgan European .688.5 -8.5 983.5 624.0
JPMorgan Indian I . . .362.5 -8.9 459.0 313.1
JPMorgan Russian .542.0 -3.0 741.0 415.1
Law Debenture Cor . .344.7 -0.3 385.0 321.0
MercantiIe Inv Tr . . . .932.0 -8.0 1137.0 823.0
Merchants Trust . . . .362.0 -7.0 431.8 341.5
Monks Inv Trust . . . .320.1 -2.4 367.9 298.1
Murray Income Tru . .628.0 -8.0 673.0 568.0
Murray Internatio . . .943.0 -9.5 991.5 818.5
PerpetuaI Income . . .254.0 -4.0 276.0 236.5
PersonaI Assets T .34100.0-160.0 34260.030210.0
PoIar Cap TechnoI . .348.4 0.4 391.2 299.5
RIT CapitaI Partn . . .1215.0 10.0 1360.0 1173.0
Scottish Inv Trus . . . .465.5 -6.5 524.0 417.0
Scottish Mortgage . .660.0 -7.0 781.0 565.0
SVG CapitaI . . . . . . . .221.8 -0.8 279.8 165.1
TempIe Bar Inv Tr . . .884.5 -11.0 952.0 791.0
TempIeton Emergin .592.5 -4.5 684.5 497.0
TR Property Inv T . . .152.0 -2.3 206.1 136.2
TR Property Inv T . . . .65.0 0.5 94.0 59.8
Witan Inv Trust . . . . .465.3 -1.7 533.0 401.5
3i Group . . . . . . . . . . .181.0 -4.5 319.4 166.9
3i Infrastructure . . . .120.2 0.1 124.0 113.4
Aberdeen Asset Ma .234.0 -9.1 243.2 167.8
Ashmore Group . . . .364.7 -2.8 420.0 301.5
Brewin DoIphin Ho . .152.7 -2.9 185.4 113.7
CameIIia . . . . . . . . . .9778.5 -9.510950.0 8800.0
CharIes TayIor Co . . .135.5 0.0 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .353.8 1.8 450.0 304.3
CIose Brothers Gr . . .674.0 1.0 875.0 590.0
CoIIins Stewart H . . . .92.3 -0.3 94.0 48.5
F&C Asset Managem .65.2 -1.0 91.0 56.1
Hargreaves Lansdo .413.5 -1.8 646.5 402.5
HeIphire Group . . . . . . .2.2 -0.2 17.4 1.4
Henderson Group . . .111.2 -2.8 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .336.1 -9.5 556.5 311.6
IG Group HoIdings . .477.8 -5.2 502.5 393.6
Intermediate Capi . . .271.2 -9.5 354.7 197.9
InternationaI Per . . . .186.1 -11.9 388.8 148.5
InternationaI Pub . . . .119.9 0.0 121.5 108.6
Investec . . . . . . . . . . .373.0 -11.6 522.0 318.4
IP Group . . . . . . . . . . . .85.0 0.0 86.6 33.2
Jupiter Fund Mana . .220.1 -5.8 337.3 184.9
Liontrust Asset M . . . .82.0 0.5 87.5 57.9
LMS CapitaI . . . . . . . . .57.5 -0.5 64.8 51.5
London Finance & . . .23.5 0.0 24.9 19.0
London Stock Exch .859.5 -5.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 -0.3 19.8 8.9
Man Group . . . . . . . . .115.3 -3.1 311.0 104.5
Paragon Group Of . .181.2 -0.6 206.1 134.6
Provident Financi . . .957.0 2.5 1124.0 915.0
Rathbone Brothers .1130.0 15.0 1257.0 977.0
Record . . . . . . . . . . . . .11.5 -1.0 35.5 11.3
RSM Tenon Group . . . .5.8 -0.3 59.0 5.7
Schroders . . . . . . . .1470.0 -51.0 1906.0 1183.0
Schroders (Non-Vo .1200.0 -30.0 1554.0 970.0
TuIIett Prebon . . . . . .293.5 -10.7 428.6 262.3
WaIker Crips Grou . . .45.0 0.0 51.5 44.0
BT Group . . . . . . . . . .202.5 -1.0 208.8 161.0
CabIe & WireIess . . . .40.9 -0.4 51.2 31.3
CabIe & WireIess . . . .20.9 -0.5 76.9 14.2
COLT Group SA . . . . .90.0 0.0 156.2 84.1
KCOM Group . . . . . . . .71.0 1.3 84.0 57.5
TaIkTaIk TeIecom . . .121.0 -1.1 161.3 119.8
TeIecomPIus . . . . . . .673.5 -9.0 802.0 440.0
Booker Group . . . . . . .71.6 -1.3 80.0 54.5
Greggs . . . . . . . . . . . .512.0 6.0 550.5 445.0
Morrison (Wm) Sup .288.8 -3.8 328.0 264.0
Ocado Group . . . . . . . .80.2 -1.3 285.0 52.9
Sainsbury (J) . . . . . . .289.3 0.7 391.2 263.5
Tesco . . . . . . . . . . . . .320.0 -0.8 420.1 312.4
Associated Britis . . .1160.0 -13.0 1173.0 940.0
Cranswick . . . . . . . . .770.0 11.0 862.0 588.5
Dairy Crest Group . . .311.0 -5.5 409.7 309.1
Devro . . . . . . . . . . . . .260.2 -3.8 296.9 223.5
Tate & LyIe . . . . . . . . .660.5 -8.5 720.5 520.0
UniIever . . . . . . . . . .2067.0 -1.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .508.0 -8.5 664.0 413.5
Centrica . . . . . . . . . . .291.5 -0.7 345.8 278.8
InternationaI Pow . . .332.0 2.0 435.1 279.4
NationaI Grid . . . . . . .613.5 3.0 649.5 543.5
Pennon Group . . . . . .694.0 1.0 737.5 584.5
Severn Trent . . . . . .1526.0 -4.0 1600.0 1368.0
United UtiIities . . . . .601.5 0.0 637.0 543.5
Cookson Group . . . . .568.5 -21.0 724.5 395.8
DS Smith . . . . . . . . . .229.8 -5.2 266.2 164.4
Rexam . . . . . . . . . . . .377.8 -5.9 400.0 299.8
Price Chg High Low
Bovis Homes Group .438.9 -8.2 499.6 326.5
Persimmon . . . . . . . .515.0 -3.0 524.5 374.0
Reckitt Benckiser . .3365.0 -14.0 3578.0 3015.0
Redrow . . . . . . . . . . . .122.5 -0.2 136.2 103.5
TayIor Wimpey . . . . . . .41.8 0.1 43.8 28.7
Bodycote . . . . . . . . . .299.6 -7.3 397.7 225.6
Fenner . . . . . . . . . . . .442.6 -12.4 464.9 280.0
IMI . . . . . . . . . . . . . . . .835.5 -27.0 1119.0 636.5
MeIrose . . . . . . . . . . .370.4 -3.2 377.8 268.0
Northgate . . . . . . . . . .221.1 0.5 346.7 190.9
Rotork . . . . . . . . . . .1863.0 -41.0 1979.0 1501.0
Spirax-Sarco Engi . .1910.0 -41.0 2063.0 1649.0
Weir Group . . . . . . .1944.0 -26.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .449.5 -10.5 460.0 315.0
Ferrexpo . . . . . . . . . . .335.7 -8.2 499.0 238.7
TaIvivaara Mining . . .316.1 -12.1 622.0 195.2
BBAAviation . . . . . . .185.5 -5.0 240.8 156.0
Stobart Group Ltd . . .128.0 1.0 163.6 112.0
AdmiraI Group . . . . . .894.5 -26.0 1754.0 787.0
AmIin . . . . . . . . . . . . .344.2 -13.2 427.0 270.6
BeazIey . . . . . . . . . . . .139.9 -2.2 142.3 109.6
Informa . . . . . . . . . . . .384.1 -10.0 461.1 313.9
ITE Group . . . . . . . . . .204.8 -4.2 258.2 157.7
ITV . . . . . . . . . . . . . . . . .75.0 -2.0 93.5 51.7
Johnston Press . . . . . . .6.0 0.0 12.8 4.1
MecomGroup . . . . . .220.0 3.0 310.0 134.5
Moneysupermarket. .115.2 -1.1 120.4 84.8
Pearson . . . . . . . . . .1155.0 -15.0 1255.0 1013.0
PerformGroup . . . . .239.0 -4.6 250.0 150.0
Reed EIsevier . . . . . .523.0 -11.5 590.5 461.3
Rightmove . . . . . . . .1279.0 -24.0 1408.0 832.0
STV Group . . . . . . . . . .91.5 0.0 168.0 76.3
Tarsus Group . . . . . .138.5 0.0 165.0 119.5
Trinity Mirror . . . . . . . .46.5 0.3 89.5 37.5
UBM . . . . . . . . . . . . . .539.0 -12.0 725.0 416.0
UTV Media . . . . . . . . .104.0 -4.5 150.0 92.5
WiImington Group . . .79.5 1.0 183.0 78.5
WPP . . . . . . . . . . . . . .737.5 -11.5 846.5 578.0
YeII Group . . . . . . . . . . .5.9 -0.4 11.3 3.4
African Barrick G . . .508.5 -7.0 616.5 393.5
AIIied GoId Minin . . .139.4 -5.6 281.3 34.4
AngIo American . . .2635.0 -63.5 3437.0 2138.5
AngIo Pacific Gro . . .294.0 0.8 369.3 237.9
Antofagasta . . . . . . .1306.0 -42.0 1524.0 900.5
Aquarius PIatinum . .179.2 -12.8 419.0 149.0
BHP BiIIiton . . . . . . .2151.0 -24.0 2631.5 1667.0
CatIin Group Ltd. . . .404.6 -7.0 421.4 334.0
Hiscox Ltd. . . . . . . . . .382.3 -2.4 424.7 340.5
Jardine LIoyd Tho . . .674.0 -16.0 764.5 576.0
Lancashire HoIdin . . .688.0 -17.0 774.5 532.5
RSA Insurance Gro . .105.3 -1.6 143.5 99.6
Aviva . . . . . . . . . . . . . .342.7 -13.4 477.9 275.3
LegaI & GeneraI G . . .114.0 -3.0 123.8 89.8
OId MutuaI . . . . . . . . .146.1 -2.5 148.7 98.1
Phoenix Group HoI . .570.0 -2.0 688.0 451.1
PrudentiaI . . . . . . . . .695.5 -20.0 777.0 509.0
ResoIution Ltd. . . . . .272.1 -2.1 316.1 229.5
St James's PIace . . . .347.1 -2.8 376.0 294.0
Standard Life . . . . . . .215.1 -4.0 244.7 172.0
4Imprint Group . . . . .260.0 0.0 295.0 200.0
Aegis Group . . . . . . .157.5 -4.0 161.5 115.7
BIoomsbury PubIis . .108.1 -0.9 138.0 91.3
British Sky Broad . . .665.5 -11.5 850.0 618.5
Centaur Media . . . . . . .36.5 0.1 73.0 32.5
Chime Communicati .219.0 10.0 298.5 163.0
Creston . . . . . . . . . . . .47.0 -4.0 121.0 46.5
DaiIy MaiI and Ge . . .431.1 -8.6 594.5 343.4
Euromoney Institu . .681.0 1.5 736.0 522.5
Future . . . . . . . . . . . . . .10.0 -0.3 30.0 8.3
Haynes PubIishing . .215.0 0.0 257.0 210.0
Huntsworth . . . . . . . . .40.8 1.1 81.0 32.3
Bumi . . . . . . . . . . . . . .866.5 0.0 883.5 849.0
Centamin (DI) . . . . . . . .93.1 -3.5 154.2 78.5
Eurasian NaturaI . . .700.0 -28.5 1076.0 522.0
FresniIIo . . . . . . . . . .1775.0 -26.0 2150.0 1296.0
GemDiamonds Ltd. .210.0 -6.0 306.0 179.8
GIencore Internat . . .415.0 -10.4 531.1 348.0
HochschiId Mining . .495.5 -11.5 680.0 365.9
Kazakhmys . . . . . . .1137.0 -23.0 1631.0 730.0
Kenmare Resources . .47.1 -0.7 59.9 31.0
Lonmin . . . . . . . . . . .1037.0 -55.0 1880.0 941.0
New WorId Resourc .433.0 -23.1 1060.0 409.4
PetropavIovsk . . . . . .740.5 -17.5 1090.0 543.5
PoIymetaI Interna . .1131.0 6.0 1154.0 877.0
RandgoId Resource 7245.0 -15.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3798.5 -11.5 4712.0 2712.5
Vedanta Resources .1176.0 -50.0 2518.0 928.0
Xstrata . . . . . . . . . . .1078.5 -25.5 1550.0 764.0
Inmarsat . . . . . . . . . . .398.1 -3.9 719.5 389.3
Vodafone Group . . . .171.8 -0.5 182.8 155.1
Genesis Emerging . .487.1 -8.8 548.5 424.0
Afren . . . . . . . . . . . . . .118.1 -5.9 171.2 73.6
BG Group . . . . . . . . .1404.0 -26.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .458.5 -6.1 497.5 363.2
Cairn Energy . . . . . . .280.0 -2.2 469.7 257.8
EnQuest . . . . . . . . . . .106.0 -2.4 158.5 85.7
Essar Energy . . . . . .126.8 -7.6 537.0 120.0
ExiIIon Energy . . . . . .237.1 -19.4 469.7 184.2
Heritage OiI . . . . . . . .189.7 -11.7 332.4 160.0
Ophir Energy . . . . . . .291.5 -6.5 318.8 184.5
Premier OiI . . . . . . . . .412.3 -6.0 535.0 310.0
RoyaI Dutch SheII . .2229.0 -20.0 2402.0 1883.5
RoyaI Dutch SheII . .2297.0 -14.5 2489.0 1890.5
SaIamander Energy .225.0 -1.0 317.6 182.3
Soco Internationa . . .284.1 -5.9 400.0 278.0
TuIIow OiI . . . . . . . . .1341.0 -28.0 1493.0 945.5
Amec . . . . . . . . . . . .1002.0 -21.0 1251.0 740.5
Hunting . . . . . . . . . . .794.5 -17.5 843.0 530.0
Kentz Corporation . .435.9 0.6 508.0 347.0
LampreII . . . . . . . . . . .288.9 -4.1 395.2 220.7
Petrofac Ltd. . . . . . .1429.0 -12.0 1608.0 1108.0
Wood Group (John) .647.0 -6.0 715.8 469.9
Burberry Group . . . .1326.0 -29.0 1600.0 1074.0
PZ Cussons . . . . . . . .301.0 0.0 387.9 285.0
Supergroup . . . . . . . .645.5 14.0 1820.0 435.2
AstraZeneca . . . . . .3055.0 19.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .331.1 7.4 347.5 210.1
Genus . . . . . . . . . . . .1031.0 -1.0 1111.0 853.5
GIaxoSmithKIine . . .1427.5 7.0 1497.0 1127.5
Hikma Pharmaceuti .717.5 -5.5 869.0 555.5
Shire PIc . . . . . . . . . .2114.0 -19.0 2243.0 1634.0
CapitaI & Countie . . .187.5 -1.7 203.7 142.8
Daejan HoIdings . . .2806.0 -74.0 2954.0 2282.0
F&C CommerciaI Pr .103.6 -0.2 108.0 92.6
Grainger . . . . . . . . . . . .97.3 -4.7 133.2 77.3
London & Stamford .104.5 -1.8 140.0 103.8
SaviIIs . . . . . . . . . . . . .335.2 5.2 427.1 256.2
UK CommerciaI Pro . .74.5 -0.6 85.5 65.1
Unite Group . . . . . . . .177.7 -2.2 224.1 152.9
Big YeIIow Group . . .271.0 -8.1 344.4 218.0
British Land Co . . . . .489.6 -8.6 629.5 444.0
CapitaI Shopping . . .328.1 -4.5 408.6 288.7
Derwent London . . .1669.0 -11.0 1880.0 1400.0
Great PortIand Es . . .356.2 0.2 445.0 312.9
Hammerson . . . . . . . .381.7 -7.2 490.9 345.2
Hansteen HoIdings . . .73.7 -0.3 89.5 68.0
Land Securities G . . .681.5 -12.0 885.0 612.0
SEGRO . . . . . . . . . . . .220.9 -3.4 331.3 195.0
Shaftesbury . . . . . . . .501.0 -6.0 539.0 436.8
Aveva Group . . . . . .1580.0 -51.0 1799.0 1298.0
Computacenter . . . . .387.9 1.9 490.0 324.7
Fidessa Group . . . . .1669.0 -9.0 2109.0 1444.0
Invensys . . . . . . . . . . .199.0 -4.0 357.8 180.9
Logica . . . . . . . . . . . . .76.2 -3.1 147.2 59.0
Micro Focus Inter . . .427.8 -8.7 455.0 242.9
Misys . . . . . . . . . . . . .320.0 -6.8 420.2 214.9
Sage Group . . . . . . . .290.3 -4.2 310.1 231.7
SDL . . . . . . . . . . . . . . .689.0 -1.0 711.5 586.0
TeIecity Group . . . . . .649.5 -9.5 661.5 450.5
Aggreko . . . . . . . . . .2059.0 -37.0 2139.0 1394.5
Ashtead Group . . . . .228.0 -8.1 241.0 99.4
Atkins (WS) . . . . . . . .695.5 -6.0 820.0 490.2
Babcock Internati . . .720.5 -13.5 758.0 542.0
Berendsen . . . . . . . . .456.8 -5.8 568.0 402.7
BunzI . . . . . . . . . . . . .851.5 -4.5 906.5 676.5
Cape . . . . . . . . . . . . . .385.4 1.4 591.5 295.0
Capita . . . . . . . . . . . . .624.5 -8.0 786.5 611.5
CariIIion . . . . . . . . . . .311.0 -10.3 403.2 281.0
De La Rue . . . . . . . . .940.0 -27.5 968.0 667.0
DipIoma . . . . . . . . . . .394.6 3.1 414.3 263.5
EIectrocomponents .208.8 -7.3 294.9 182.2
Experian . . . . . . . . . . .858.5 -16.5 902.5 665.0
FiItrona PLC . . . . . . . .381.0 -3.0 404.5 280.0
G4S . . . . . . . . . . . . . . .269.0 -2.1 291.0 219.9
Hays . . . . . . . . . . . . . . .72.0 -0.5 130.0 58.9
Homeserve . . . . . . . .286.3 -8.4 532.0 218.5
Howden Joinery Gr . .106.2 -4.3 127.5 93.1
Interserve . . . . . . . . . .294.0 -1.5 341.3 239.8
Intertek Group . . . . .2078.0 -27.0 2149.0 1737.0
MichaeI Page Inte . . .381.8 -12.5 567.0 323.0
Mitie Group . . . . . . . .252.2 -10.9 271.0 195.9
PayPoint . . . . . . . . . . .552.0 9.5 585.0 327.3
Premier FarneII . . . . .205.8 -5.3 308.8 144.5
Regus . . . . . . . . . . . . . .97.2 -2.0 119.0 64.0
RentokiI InitiaI . . . . . . .73.8 -1.3 103.4 58.2
RPS Group . . . . . . . . .198.5 -2.1 253.0 156.6
Serco Group . . . . . . .505.5 -3.5 618.5 458.0
Shanks Group . . . . . . .96.8 -0.7 130.9 90.8
SIG . . . . . . . . . . . . . . . .98.5 -2.1 153.5 77.0
Travis Perkins . . . . . .863.5 -20.0 1090.0 715.0
WoIseIey . . . . . . . . .2205.0 -14.0 2274.0 1404.0
ARM HoIdings . . . . . .597.5 1.5 651.0 464.0
CSR . . . . . . . . . . . . . .229.4 -3.3 447.0 154.1
Imagination Techn . .570.0 -11.0 583.5 296.9
Spirent Communica .120.0 -0.3 160.0 105.8
British American . .2962.5 8.5 3079.0 2300.0
ImperiaI Tobacco . .2270.0 -19.0 2444.0 1784.0
Betfair Group . . . . . . .864.0 -11.0 1030.0 567.0
Bwin.party Digita . . .156.9 -1.3 204.0 100.6
CarnivaI . . . . . . . . . .1910.0 -10.0 2983.0 1742.0
Compass Group . . . .589.5 -2.5 619.5 512.5
Domino's Pizza UK . .459.4 -3.0 549.0 377.0
easyJet . . . . . . . . . . . .447.3 -4.8 462.0 301.0
FirstGroup . . . . . . . . .307.8 -2.2 379.1 301.8
Go-Ahead Group . . .1247.0 -4.0 1598.0 1190.0
Greene King . . . . . . .493.2 -4.0 520.5 410.0
InterContinentaI . . .1295.0 -26.0 1435.0 955.0
InternationaI Con . . .177.9 -0.7 268.1 132.0
JD Wetherspoon . . . .404.8 -8.8 468.3 380.5
Ladbrokes . . . . . . . . .139.0 -1.9 155.3 114.0
Marston's . . . . . . . . . . .96.5 -1.8 112.0 84.6
MiIIennium& Copt . .440.0 3.2 600.5 371.2
MitcheIIs & ButIe . . . .256.5 -6.2 348.7 215.6
NationaI Express . . .208.4 -7.4 270.2 201.6
Rank Group . . . . . . . .131.1 4.1 153.7 109.5
Restaurant Group . . .291.4 -2.8 335.0 254.9
Spirit Pub Compan . . .49.5 -0.5 55.0 35.3
Stagecoach Group . .275.9 -6.1 282.5 200.0
TUI TraveI . . . . . . . . . .189.0 -3.2 259.8 136.7
Whitbread . . . . . . . .1644.0 -46.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .222.2 -4.0 244.1 176.8
Abcam . . . . . . . . . . . .338.5 -1.3 460.0 320.0
Advanced MedicaI . . .85.8 -2.8 96.0 64.8
AIbemarIe & Bond . .341.0 -1.0 400.1 272.0
Amerisur Resource . .19.0 0.0 29.0 9.5
Andor TechnoIogy . .577.5 5.5 685.0 387.1
ArchipeIago Resou . . .70.0 1.5 79.0 55.5
ASOS . . . . . . . . . . . .1730.0 -18.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.3 0.0 92.0 16.0
Avanti Communicat .283.3 -6.3 628.0 248.5
BIinkx . . . . . . . . . . . . . .68.0 -2.3 158.0 50.5
Borders & Souther . . .68.3 -2.5 73.3 43.5
BowLeven . . . . . . . . . .82.8 1.0 382.3 62.0
Brooks MacdonaId .1127.5 2.5 1372.5 940.0
Cove Energy . . . . . . .136.5 0.5 138.8 61.0
Daisy Group . . . . . . .103.0 0.0 127.0 88.0
EMIS Group . . . . . . . .430.0 32.5 580.0 395.0
Faroe PetroIeum . . . .162.5 -2.3 205.0 130.0
GuIfsands PetroIe . . .166.5 -9.5 342.0 142.5
GWPharmaceuticaI . .93.3 0.8 130.0 78.5
H&T Group . . . . . . . . .345.0 -7.5 395.0 277.0
Hamworthy . . . . . . . .824.0 0.0 833.5 460.0
Hargreaves Servic .1152.0 -7.0 1180.0 855.0
HeaIthcare Locums . . . .3.1 -0.1 3.4 3.1
Immunodiagnostic . .354.5 45.0 1218.0 288.8
ImpeIIamGroup . . . .243.0 0.0 387.5 195.0
James HaIstead . . . . .465.0 25.0 495.0 400.5
KaIahari MineraIs . . .242.0 -0.8 301.0 198.3
London Mining . . . . .276.8 -6.3 436.5 257.5
Lupus CapitaI . . . . . .126.5 0.0 150.0 86.0
M. P. Evans Group . .443.5 3.0 475.0 371.0
Majestic Wine . . . . . .406.0 -4.3 510.0 315.0
May Gurney Integr . .285.0 4.8 302.0 234.0
Monitise . . . . . . . . . . . .28.5 -0.3 40.0 20.5
MuIberry Group . . . .1800.0 -12.0 1920.0 1065.0
Nanoco Group . . . . . . .62.5 1.9 93.3 38.0
NauticaI PetroIeu . . .322.3 -6.8 547.0 223.5
NichoIs . . . . . . . . . . . .600.0 0.0 615.0 410.0
Numis Corporation . . .96.0 1.5 126.0 72.0
Pan African Resou . . .16.0 -1.5 18.3 9.5
Patagonia GoId . . . . . .42.5 -1.3 70.0 37.3
Prezzo . . . . . . . . . . . . .68.0 0.0 71.5 53.5
Pursuit Dynamics . . .103.0 -2.0 410.0 67.0
Rockhopper ExpIor .328.5 -10.5 386.0 141.0
RWS HoIdings . . . . . .452.5 6.5 481.6 328.0
Secure Trust Bank .1005.0 70.0 1030.0 755.0
Songbird Estates . . .106.0 0.0 160.3 104.0
VaIiant PetroIeum . . .426.8 1.8 645.0 400.0
Young & Co's Brew . .637.5 1.5 712.0 565.0
Rank Group . . . . . . . .131.1 3.2
BTG . . . . . . . . . . . . . .331.1 2.3
Bumi . . . . . . . . . . . . . .866.5 2.2
Supergroup . . . . . . . .645.5 2.2
KCOM Group . . . . . . . .71.0 1.9
PayPoint . . . . . . . . . .552.0 1.8
Dixons RetaiI . . . . . . .15.2 1.6
SaviIIs . . . . . . . . . . . .335.2 1.6
Cranswick . . . . . . . . .770.0 1.5
Rathbone Brothers .1130.0 1.4
ExiIIon Energy . . . . . .237.1 -7.6
Aquarius PIatinum . .179.2 -6.7
InternationaI Pers . . .186.1 -6.0
Heritage OiI . . . . . . . .189.7 -5.8
Essar Energy . . . . . .126.8 -5.7
New WorId Resource 433.0 -5.1
Lonmin . . . . . . . . . . .1037.0 -5.0
Afren . . . . . . . . . . . . . .118.1 -4.8
Grainger . . . . . . . . . . . .97.3 -4.6
BarcIays . . . . . . . . . . .213.6 -4.2
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.250 12 . . . .101.68 -0.01 105.8 101.6
Tsy 9.000 12 . . . .104.48 0.00 111.9 103.3
Tsy 5.000 12 . . . .100.43 -0.01 104.6 100.4
Tsy 4.500 13 . . . .104.47 0.00 106.7 104.4
Tsy 2.500 13 . . . .283.20 0.00 287.7 279.0
Tsy 8.000 13 . . . . .112.50 -0.01 117.4 112.4
Tsy 5.000 14 . . . . .111.93 0.06 112.9 109.2
Tsy 7.750 15 . . . .100.00 0.00 106.7 99.4
Tsy 4.750 15 . . . . .114.94 0.10 115.4 108.6
Tsy 8.000 15 . . . .128.10 0.08 129.2 123.7
Tsy 4.000 16 . . . . .114.18 0.14 114.7 104.9
Tsy 2.500 16 . . . .343.17 0.12 344.2 105.0
Tsy 12.000 17 . . .121.05 0.00 129.4 120.9
Tsy 8.750 17 . . . .141.29 0.21 141.9 132.9
Tsy 1.250 17 . . . . .116.01 0.29 116.6 106.7
Tsy 5.000 18 . . . .122.24 0.29 122.5 109.7
Tsy 4.500 19 . . . .120.55 0.39 120.7 105.4
Tsy 3.750 19 . . . . .115.41 0.45 115.6 99.4
Tsy 2.500 20 . . . .365.14 0.44 367.1 314.0
Tsy 4.750 20 . . . .123.18 0.51 123.5 106.6
Tsy 8.000 21 . . . .152.71 0.54 153.4 133.8
Tsy 1.875 22 . . . .127.45 0.55 129.1 111.3
Tsy 4.000 22 . . . . .117.64 0.61 118.2 99.0
Tsy 2.500 24 . . . .329.92 0.54 334.7 275.6
Tsy 5.000 25 . . . .129.88 0.65 130.6 107.4
Tsy 1.250 27 . . . .124.39 0.68 127.0 104.8
Tsy 4.250 27 . . . .121.83 0.74 122.7 97.9
Tsy 6.000 28 . . . .147.01 0.70 148.0 119.5
Tsy 4.125 30 . . . .317.30 0.58 322.8 262.9
Tsy 4.750 30 . . . .129.14 0.80 130.5 103.0
Tsy 4.250 32 . . . .121.64 0.80 123.1 96.0
Tsy 4.250 36 . . . .122.29 0.90 123.9 95.0
Tsy 4.750 38 . . . .132.10 0.94 134.2 102.8
Tsy 4.500 42 . . . .128.66 1.06 130.8 98.9
% %
CITYA.M. 31 JANUARY 2012 35
Wealth Management | ISAs
D
EFINED benefit (DB) pension schemes
are rarely out of the news these days
the latest headlines being from Shell,
which has become the last of Britains
biggest companies to scrap its final salary
scheme for new entrants. And while the death
of DB which has been predicted from as far
back as 2004, when I joined The Pensions
Regulator may not be upon us quite yet, it is
clear that rising longevity, poor investment
returns and, some would argue, increased
regulation, have resulted in the provision of
DB pension schemes becoming too costly for
many to bear.
Scheme closure does not remove a compa-
nys obligation to pay its previously accrued
liabilities, however, which means the need to
manage risk remains. Left unmanaged, DB
pension risk can seriously impact the core
business with implications for both share-
holders and scheme members: its credit rat-
ing, share-price, and ability to attract capital
can all be affected, for instance. And it is not
an exaggeration to say that, in certain cases,
DB pension liabilities are so large and volatile
they can pose a serious threat to the financial
viability of sponsoring companies. Indeed, the
FTSE 100 is home to no fewer than 10 compa-
nies with pension liabilities greater than
their market capitalisation. And other compa-
nies are pensions zombies: they really only
exist to support their pensions schemes.
The buyout market which essentially
allows a pension scheme to transfer the risk
over to an insurance company seems to offer
an answer to the DB problem. Yet the statis-
tics paint a sorry picture. Since 2007 (when
buyouts seemed to be doing well), the buyout
market has seen only 25bn of business (and
this figure includes buy-ins) equivalent to
just 2.5 per cent of the total value of DB liabil-
ities sitting alongside the balance sheets of
private UK companies. For the buyout market
to fulfil its potential, the insurance industry
has to come up with a better proposition than
is currently available to chief financial offi-
cers and trustees.
A PENSIONS SHAKE-UP
There is no better time than now to address
this issue. With the cash position of UK PLC
looking remarkably healthy UK companies
cash flow has grown 40 per cent since the
depths of the financial crisis most chief
financial officers are looking for investments
to put their cash to good use.
But to make the most of this, the whole
industry needs a shake-up. Shareholders must
pressure sponsoring companies to treat pen-
sion risk disclosure in line with that afforded
to all other corporate risks on the balance
sheet. Meanwhile, companies must embrace
new technologies to improve their under-
standing and ability to manage pension risk.
First of all, however, insurers need to inno-
vate to reduce the costs of buyouts.
Traditionally, buyouts have been priced at
about 140 per cent of the valuation of a
schemes liabilities on an IAS19 basis a price
greater than most chief financial officers are
willing to pay. And while it would be unfair to
lay the blame for this solely at the door of the
insurance industry (insurance companies are
constrained by the solvency capital regime
required within the regulated insurance sec-
tor) there has been a lack of innovation target-
ed towards making solutions more affordable.
Certainly, even where a pension scheme is
fully funded to IAS19, it seems improbable
that many will be reaching for their cheque-
books to pay a 40 per cent premium to an
insurance company to take the risk away
especially given that the premium will be an
immediate hit to the sponsors profit and loss.
A CAPTIVE SOLUTION
One way forward may be via the world of cap-
tive insurance, where a company forms its
own insurance company subsidiary to carry
its risks. Used by many large companies to
insure their property and casualty risks, cap-
tives if set up by a pension scheme would
naturally retain the profit that would other-
wise be paid to an insurer. But a pure captive
solution for delivering pension buyouts
would also consolidate the pension liability
on the sponsors balance sheet compound-
ing the problem. A solution is therefore
required that delivers the economic benefits
of a captive through a mutually owned insur-
ance company, which removes the need to
consolidate the liability. It may also tackle
perhaps the greatest barrier to a buyout the
cost. Pension schemes conducting such a buy-
out could ultimately reduce the price they
have to pay by as much as 20 per cent.
Current economic conditions, many would
argue, may mean that such innovations will
struggle to solve the buyout conundrum. Yet
companies may have to accept that the heady
days of 2008 when schemes could transact
at a price just over the value of their liabilities
may never be seen again. And that leaves the
way clear for new entrants to offer innovative
solutions to the DB pensions issue.
David Norgrove is the former chairman of The
Pensions Regulator and the current chairman of
Long Acre Life.
36
The Forum
CITYA.M. 31 JANUARY 2012
Most chief financial officers
are looking for investments
to put their cash to good use
Devastating pensions crisis
requires companies to take
a more inventive approach
cityam.com/forum
DAVID NORGROVE
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
37
Broadband and
education both
need an upgrade
UK tech sector is
positioned for a
global challenge
B
Y THE end of this year, the US technolo-
gy company Apple could see its cash
reserves outstrip those of the US govern-
ment. While the UK hasnt yet pro-
duced an equivalent, there are signs that
technology might be the key sector in
Britains future.
Last year, the sector outperformed the
broader equity markets, with investors being
attracted by strong balance sheets and higher
growth rates. This increased confidence trans-
lated into a healthy increase in tech mergers
and acquisitions, with the number of global
technology deals rising by an impressive 11
per cent: similar to the number of deals com-
pleted in the bull market of 2005-2008.
Given the acquisition strategies of tech
giants, and the governments pledge of sup-
port, is the optimism justified? Is there scope
for the UK becoming the worldwide hub for
technology?
Yes, in our view, providing we get the funda-
mentals in place and some serial entrepre-
neurs are also bullish about the potential.
LoveFilm founder William Reeve has said that
his objective is to build a UK business to the
point that it buys its nearest US rival, not the
other way around. We are going through a
period of rapid acceleration fuelled by the
convergence of information technology (IT),
media, telecoms, wireless and mobile. Online,
business groups and social groups are merg-
ing and the cloud is going to take off in the
next few years. Saas (software as a service),
miniaturisation, mobilisation and digitisa-
tion are all accelerating and thats creating a
period of rapid change.
Tech businesses still need a lot of cash to
grow, but some digital businesses are proving
that they dont require huge capital expendi-
ture to create whole new subsectors of the
market. Twitter created a whole new industry
within three years and built considerable
scale and followers before its large funding
round.
One of the reasons why the high street is in
such trouble is the strength of internet
brands. People are not just buying groceries
online, they also buying luxury goods, and
watching rich film and media on mobile
screens. Theres no single killer app that sud-
denly changed things. Whats creating this
massive shift is a culmination of smarter
working, smarter applications and the ease of
access to smarter technology everywhere.
Two areas where the government could
invest to support the sector, and deliver result-
ing benefits to the economy, are broadband
and education. Delivering high-speed broad-
band throughout the UK could have a hugely
positive impact on the economy, while the
quality of IT education isnt up to scratch.
Schools in the UK are teaching how to open a
spreadsheet and a word document, whereas
kids in other countries are being taught how
to build computer programmes, develop apps
and design software.
If the foundations are built the UK is poised
to benefit from our geography the UK
bridges east and west, making it an ideal cen-
tre to do business. Weve got the potential in
our universities. As long the investment con-
tinues we will achieve the global success of US
technology giants such as Apple and Google.
Alan Bristow is chief executive of Icon Corporate
Finance. Nigel Miller is a partner at Fox Williams
and head of the ebusiness and technology group.
Generally agree
Nice timing in the article by Sir
Rob Fry (This former general
says the real essence of strategy
has been forgotten by business,
yesterday) on the decline of
strategy as a leadership compe-
tency the Institute of
Leadership and Management has
been having just this debate
recently.
As an inveterate strategist, I
share Sir Rob's dismay at the
decoupling of strategy from out-
come or implementation.
I blame the influence of business
schools, for whom the academic
objective rigorous methodolo-
gy overtook practical outcomes
as the rationale for strategy.
Thankfully strategy is still prac-
tised in real-world format by our
military. Perhaps we need a
Masters in Military
Administration as a prerequisite
for business management? And
I'm only half-joking.
John Mark Williams, chief
executive, Gateway to London
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
ALAN BRISTOW &
NIGEL MILLER
BY ANTHONY J. EVANS
CITYA.M. 31 JANUARY 2012
The Forum
T
HE Bank of
Englands current
monetary policy
rule is inflation
targeting they use the
tool of interest rates
(and more recently
quantitative easing) to
target a particular level
of consumer price infla-
tion (2 per cent). This is common practice among
contemporary central banks, but the continued lack
of recovery has meant that people are questioning
its validity.
Rather than target inflation, some economists
argue that the central bank should target nominal
GDP (NGDP), which is the price level multiplied by
real output. The idea is that they choose a particu-
lar target level of growth and then adjust monetary
policy in order to reach it. If 2 per cent inflation is
seen as fairly typical, and the trend rate of growth
for real GDP to be about 3 per cent, then an NGDP
target of 5 per cent would be appropriate.
Ive previously argued in this column that the
Bank of England might already have replaced its
price level target with an NGDP one, and there is
evidence that more and more central banks are
taking NGDP targeting seriously. But its advocates
would point out that the target should be a path,
not a growth rate. In other words if NGDP has been
below 5 per cent for several quarters it should
grow by more than 5 per cent until it catches up to
where it would have otherwise been.
In our current quarterly report, Kaleidic
Economics (a London-based business roundtable
that I organise) has highlighted the dangers of
choosing the wrong level, (you can read the full
report here: www.kaleidic.org/reports).
The chart shows money GDP from 1997-2016.
If NGDP grew at 5 per cent per year it would fol-
low the path of the red line. The actual NGDP
(including admittedly dubious official forecasts) is
shown in blue. It is clear how NGDP rises at a high-
er rate in the early 2000s until the credit crunch
and recession pushes it significantly below trend.
Although it is growing again the fact that the blue
line remains consistently below the red line shows
evidence of an output gap that some economists
are wont to close through additional quantitative
easing.
But consider the green line, showing a slightly
lower NGDP level target of 4.5 per cent. If we
chose this as our trend line, rather than 5 per cent,
it points to an even bigger inflationary boom prior
to 2007 but also that future monetary policy is
expected to be re-inflating it.
In other words, even if you believe that NGDP
level targeting is appropriate, you still need to
choose a level. And it may be the case that the
economists benchmark is a permanent inflation.
Anthony J. Evans is associate professor of eco-
nomics at ESCP Europe Business School. His
website is www.anthonyjevans.com, and you
can email him at anthonyjevans@gmail.com.
The lines fine between
credit booms and busts
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
ANALYSIS l NGDP targets
19
9
7-9
8
50
100
150
200
250
19
9
9
-0
0
2
0
0
1-0
2
2
0
0
3
-0
4
2
0
0
5
-0
6
2
0
0
7-0
8
2
0
0
9
-10
2
0
11-12
2
0
13
-14
2
0
15
-16
4.5% target
level
5% target
level
NGDP level
24
Opportunities abound for providers to offer enhanced
social and data rich platforms, writes Philip Salter
Technological
change drives
better trading
T
HE latest foray in the ongoing
battle of technology that has
griped retail trading since
the invention of the internet
comes from IG Index. As part of its
shiny new Insight portal, it is releas-
ing details of its clients net posi-
tions (see right for an example of
the information now available).
More information and collabora-
tion is a good thing but remem-
ber: the responsibility for when and
how to trade always rests on the
shoulders of each and every trader.
IG Index isnt offering the same
as either eToro or Currensee, in
which you follow specific traders
and build social networks, but is yet
more evidence that retail trading in
the future will require information
in an easily digestible format, deliv-
ered in an increasingly open and
social format. Insight gives clients a
view on the most traded markets,
how many people are long or short
and what other markets they have
traded. David Jones of IG Index
notes that clients have been
grabbed by aggregate trade data:
Clearly this can be used to gauge
the sentiment of fellow traders and
decide whether you want to join
them or if they are all barking up
the wrong tree and you want to use
it as a contrary indicator.
Over the years, retail traders have
embraced technology. Angus
Campbell of Capital Spreads notes
the advent of the internet was the
biggest shake up, as this led to the
boom in online trading and invest-
ing: As internet websites were pop-
ping up everywhere in the late
nineties and early noughties, so too
were online trading sites with
spread betting companies leading
the way.
Christopher Beauchamp of IG
Index believes increased informa-
tion about how other traders are
positioned will also develop. He
says traditional bulletin boards
have provided traders with a place
to share their thoughts and views
(with the usual caveats about bias),
but there are new ways of learning
from others.
MORE WHEAT, LESS CHAFF
Stepping back from IGs specific
offering, it should be noted that
information and socialisation
comes with risks traders need to
pick the right information and
devise and execute their own trad-
ing strategy. Brenda Kelly of CMC
Markets says examining trade vol-
umes is an important considera-
tion; however, looking at what
others are doing in respect trade set
up and directional tips should be
something of interest but I dont
feel it should necessarily sway a
trader one way or another. GFTs
David Morrison thinks it is impor-
tant for traders to do their own
homework to sift out the good
from the bad, or downright ugly.
However, despite these caveats,
Kelly notes that information and
ergo knowledge is power, while
Morrison says despite the danger
of information overload, this is a
small price to pay for this level of
access.
Beauchamp thinks sifting the
real information from noise and
opinion is key, and individuals
need to remember that there will
always be someone with a different
opinion two opinions make a
market, as the saying goes.
Ultimately its up to each trader to
decide what to do.
Price is paramount, so the bid-
offer spread should always be criti-
cal in determining platforms.
However, spread betting and con-
tracts for difference providers will
increasingly be differentiated by
the way that their clients interact
with the information they provide
and with other clients this is an
opportunity to offer very different
services catering to different
demands.
Providers want traders to be suc-
cessful they are hedged and make
money on the spread. As such,
interests are aligned to create a
future of better and hopefully
more successful trading environ-
ments. But its not its others job to
develop the technology traders
need to focus on getting the most
out of their trading experience
now.
Wealth Management | Trading
S
INCE the start of the year the euro
has surprised many market partici-
pants by staging a vicious short cov-
ering rally that has added more than
500 points to the pair over the past two
weeks. There were three key reasons for
the euros recent strength. First and fore-
most, the Eurozone credit markets have
become markedly less volatile as the
European Central Bank (ECB) provided
massive liquidity through its Long Term
Refinancing Operation facility, while the
European Union, International Monetary
Fund and ECB continued to work on the
bailout of Greece. Secondly, the economic
data in the US and core Europe has been
remarkably resilient, sparking hopes that
global economy will avoid a recession in the
first half of this year, which should prove
supportive for risk assets such as the euro.
Last but not least, the euro remains grossly
oversold with the latest Commitments of
Traders report showing that the euro
shorts continue to increase to record highs,
thus creating a massive positioning imbal-
ance that makes the pair vulnerable to
quick short covering rallies.
Lately, however, these three pillars of
euro support are beginning to wobble. On
the credit front the situation in Greece
remains unresolved. Although the reports
over the weekend suggested that the two
parties were close agreeing on a 60 per
cent haircut and a coupon just below the 4
per cent rate no formal announcement
has yet been made frustrating some
market players who had been expecting a
deal to be concluded. Meanwhile, Greek
Prime Minister Lucas Papademos said that
unless the countrys international backers
agreed to a new bail-out, Greece would be
unable to pay off its loans and be forced
out of the Eurozone. Without that bailout,
Greece will be unable to repay 15bn of
loans due in March.
Over the weekend Germany suggested
that a European commissioner should take
effective control of Greek fiscal policy to
ensure that the country implements key
austerity measures. However, Evangelos
Venizelos, the Greek finance minister,
rejected that plan, saying it would under-
mine Greeces national identity and digni-
ty. Greece remains the key to further euro
gains, not only because a failure to reach a
compromise could trigger a hard default,
but also because a successful deal could
act as a template for possible rescues of
Portugal and Ireland as the year progress-
es.
The macro economic picture has also
become considerably less rosy over the
past few days. Last Friday, the market
received a nasty surprise when the US
GDP data printed at 2.8 per cent versus
3.0 per cent eyed. Worse yet, US personal
consumption was markedly weaker at 2.0
per cent versus 2.4 per cent forecast, sug-
gesting that consumers remain cautious.
This weeks calendar is chock full of impor-
tant economic releases including German
Retail Sales and Labor data due tonight,
US ISM Manufacturing on Wednesday
and Non-Farm payrolls on Friday. If the
data prove disappointing, the global rally in
risk could come to a grinding halt, as fears
of a slowdown once again grip the market.
Finally, even the positioning data may
not prove to be as euro bullish as it
appears. The latest snapshot that we have
was taken last Tuesday, just before the
large euro rally sparked by the dovish
Federal Open Market Committee (FOMC)
press conference. That means the euro
short position was very likely reduced sub-
stantially, relieving some oversold condi-
tions in the market.
In short, euro longs may now find them-
selves in a perilous situation if the sover-
eign debt problems remain unresolved, the
economic data begins to disappoint and
market positioning is no longer skewed to
the short side. Technically the pair has hit
resistance at the $1.3200 level, and will
now need a confluence of positive factors
to propel it higher. Otherwise it can quickly
tumble back to the $1.20s as all the old
worries return.
DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
THE EURO IS VULNERABLE TO
A SELL-OFF DURING THE WEEK
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
T
HE shares of Tesco plunged in
mid-January after the retail
giant announced an unexpect-
ed fall in Christmas sales. The
sell-off took the price down through
support at 350p and also broke the
long-term up-trend. News that
Warren Buffett increased his holding
to 5 per cent from 3.2 per cent
helped to lift the shares, but the stock
is struggling once again on concerns
of increased competition and
depressed margins. GFT quotes Tesco
at 320.0p-320.1p.
Yet more strong results from tech
giant Apple helped ARMrecover
some of its form last week, and
investors will be hoping for similarly
sweet figures from the UK company
this week. ARMs technology is at
the core of Apples latest iPhone 4,
and royalty revenue for this new
gizmo is expected to be around dou-
ble the level on the previous model.
If ARM can match the breezy out-
look for the coming year suggested
by its bigger American customer,
then the shares could see decent
gains, particularly if investors think
that a new incarnation of the iPad is
on the cards. IGs price for ARM is
601.9p-603.6p.
The FTSE bout of weakness in the
past couple of days could present a
buying opportunity, as it retraces a
little to give those whove missed
out on the recent strength a chance
to dip their toes in. Although clients
have been selling the index recently,
a few tentative buyers came in on
Monday. Capital Spreads quotes
5690.0-5691.0.
Its no secret that high street
retailers have been struggling lately,
so the interim management state-
ment of Carpetright later today will
hopefully alleviate investors con-
cerns over last years results and
many profit warnings. The technicals
support the bulls so will the retail-
er be rolling out the red carpet for
the awaited release? Capital
Spreads quotes a price of 312.7p-
623.8p.
As the smartphone market war
continues to boil, Nokia announced
it sold more last quarter than ana-
lysts expected, giving ot a much
needed boost. Nokias alliance with
Microsoft appears to be showing
good prospects, and this will only
help its planned offering of the
Lumia model to the Indian and
Chinese markets. Capital Spreads
quotes Nokia at SKr33.4-SKr33.7.
Philip Salter
THE TIPSTER
OMAHAS ORACLE FEASTS
AT THE BARGAIN BUFFET
ANALYSIS l Euro-dollar moves
May Jun Jul Aug Sep Oct Nov Dec 2012
1.2600
1.2700
1.2800
1.2900
1.3000
1.3100
1.3200
1.3300
1.3400
1.3500
1.3600
1.3700
1.3800
1.3900
1.4000
1.4100
1.4200
1.4300
1.4400
1.4500
1.4600
1.4700
1.4800
1.4900
Has the euro-dollar rally peaked at $1.3200?
$1.32278
$
STRATEGIST
JOHN KICKLIGHTER
My pick: Short S&P 500 below 1,300
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
We have kept the capital markets afloat for months on the expecta-
tion that policy officials are willing to feed moral hazard and inject
stimulus whenever investors are faced with a significant loss.
However, not only will their will for this falter, but their capacity is
also limited. We have seen a correction on the S&P 500 today, and a
larger correction may soon be at hand. Alternatively, the Swiss
National Bank and Bank of Japan may be forced into action soon.
ANALYST PICKS
Wealth Management
Clients trading this market also have positioned on
70%
SHORT
Wall
Street
-0.64%
86%
LONG
Lloyds Banking
Group PLC
-4.84%
75%
SHORT
Germany
30
-0.88%
99%
LONG
Gulf Keystone
Petroleum
1.41%
US SPX
500
-0.72%
68%
SHORT
STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I entered short at $1.3526 on 9 November, expecting the Eurozone
debt crisis to continue to spread. I revised my soft target to $1.2586
after the trades second objective at $1.2872 was met. A corrective
recovery played out as suspected over the past two weeks, but now
the EU leaders summit threatens to hand momentum over to the
bears once more as sovereign risk jitters return. I will continue holding
short, with a stop-loss to be activated on a daily close above $1.3231.
STRATEGIST
JOEL KRUGER
My pick: Looking to sell Australian dollar-dollar at $1.0410
Expertise: Technical Analysis
Average time frame of trades: 1 to 5 weeks
The latest surge looks like it could be stalling, with the market failing to
reach the key highs from October ($1.0755), breaking back below last
Fridays low. Overall, the core outlook remains intensely bearish. Look
for a more significant downside extension back below parity over the
coming days. Daily studies are now unwinding from overbought and a
break below $1.0425 over the coming sessions should confirm and
accelerate. Ultimately, only back above $1.0755 would negate outlook.
ANALYSIS l IG clients' sentiment yesterday on the FTSE and beyond
63%
SHORT
37% of all IG clients with open positions
in this market expect the price to rise
63% of all IG clients with open positions
in this market expect the price to fall
92%
LONG
Lloyds Banking
Group PLC
-4.84%
98%
LONG
Tesco
PLC
-0.4%
88
LONG
Royal Bank
of Scotland
-4.04%
75%
LONG
Barclays
PLC
-2.87%
93%
LONG
Man Group
PLC
-1.06%
Most open positions
Welcome the future
with open arms
When it comes to your strategy, when
you trade can matter as much as
what you trade, writes Craig Drake
Liquidity matters
Picture: GETTY
Timing your
trading to
perfection
ANALYSIS l Average hourly moves in sterling-dollar
0 2 4 6 8 10 12 14 16 18 20 22
20
15
10
Average Pips
Time (NYC)
Asia Session
ANALYSIS l Profitability by FX pair
Time (NYC) 00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-15 16-17 18-19 20-21 22-23
60.0
55.0
50.0
45.0
40.0
%
EUR/USD USD/CHF
USD/JPY
AUD/USD
GBP/USD
Wealth Management | Trading
I
F youve ever sat and tried to
trade on a thin, illiquid day,
youll know just how important
it is to think about what time of
day you trade. As part of your trading
strategy, it is important to consider
how much market activity happens at
certain times greater volume helps
to drive trends and breakouts. This is
typically at the European and US mar-
ket opens and at significant economic
data releases and central bank deci-
sions. Most traders prefer a liquid
market as it keeps spreads on the bid-
offer price low and thereby keeps trad-
ing costs low, says Brenda Kelly,
market analyst at CMC Markets. The
greater the volume of trade in the
market, the easier it is to both trade in
and out of the market.
CURRENCY SESSIONS
In the FX market, the times of highest
daily volume happen on the overlap
between trading sessions. As an over-
the-counter derivative, FX pairs can be
traded 24 hours a day, but the day can
be split into three main trading ses-
sions. The Asian session runs from
midnight (GMT) until 9am. The
London session from 7am until 5pm
and the New York Session from 1pm
until 10pm. The most active time is
when London and New York traders
are at teir desks at the same time
from 1 pm until 5 pm. As the two
largest FX markets in the world, 80
per cent of the days price range move
happens during the US session and 70
per cent during the UK session. Of
course, not all currencies act the same
way. The yen tends to be the most
volatile during the Asian session, com-
pared to the pound or dollar, as this is
the Japanese business day (see charts,
below).
TIMING IT RIGHT
Just how much do spread betters and
contracts for difference traders think
about timing when they should be
trading? I suppose that you could say
the beauty about spread betting is
that people can do it whenever and
wherever they want, says Ian
OSullivan, head of sales for SpreadCo.
As a result, though most people will
stick to times when the market is
most liquid, there are still plenty of
retail traders that trade whenever
they have time. Client activity only
really lightens up when volatility is
low, says OSullivan. High volatility
means high activity.
SHORT-TERM MOVES
But low volumes and liquidity are not
always a bad thing, especially if you
are a short term trader. Stock markets
spike on low volumes so a small
group of people trying to move the
market can be to your benefit.
However, when there are large vol-
umes driving the price in one direc-
tion, its usually a sign that you
should follow the wisdom of the
masses and move with them.
According to Brenda Kelly: While
some would discount volatility as a
negative part of investing, for those
who can trade both sides of the mar-
ket, its indispensable.

Spread Trading has arrived with a big offer too.
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F
ortitude is needed when stepping into the chilly grey city
day after day. Everyone has their own way of combating
winter blues, from Krispy Kremes to extra exercise. For me,
its scent. A waft of patchouli or a burst of deep red fruit has
the power to wake me up and make me smile, for the simple rea-
son that in the same way that donuts taste good certain per-
fumes just smell delicious.
You might think that winter mood-lifters would be summery, but experts recom-
mend the opposite. In other words: theres no point pre-
tending its summer by drenching yourself in citrus and
flowers. Dr Rowan Boyson, a historian of literature and
scent at Cambridge, says: It may seem counter-intuitive,
but Id suggest citrus pick-me-ups can make you feel the
absence of summer holidays even more. Instead go for
something clean, green, smoky, and moody, and not
festively spicey or gourmand now were all in ascetic
mood. Think bracing January walks by the sea followed
by a warming whiskey or cup of lapsang souchong.
Boyson picks out LArtisan Parfumeurs Tea for Two and
Annick Goutals Vetiver. Odette Toilette, the cult olfac-
tress, says: When its dull, cold and blustery and pitch black by five, I find that the
scents which restore a little vim and vigour are not necessarily the ones that transport
the sniffer to the tropics, rather those which present the fantasy version of a winters
day which comes all too rarely: sparkly, bright and energising.
Michelle Roques ONeil, a top aromatherapist, says: Winter from a Chinese medicine
perspective is a time when people need to nour-
ish themselves. Scents like rose help lift the
heart, ylang ylang is also uplifting and
fortifying. Vetivier and patchouli
found in Oriental scents have that
warmth about them. Add in top
notes of rose, tuberose and jasmine
and youre good to go.
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Time to get
your running
shoes on
Certain perfumes can boost gloomy
winter sprits, says Zoe Strimpel
EPISODE 44 EAST OF PERTH: GDAY ZOMBIE
CITY DAD
I
look and feel like a zombie. Im pale, nursing a
Great British cold and hugging what shadow
I can find in unrelenting sunshine and 40C
temperatures. Actually, maybe thats more
vampire than zombie. Ill ask Noel when I call
home. Hell know.
I spent the best part of a full 24 hour day air-
borne, with little sleep. Not even reading and cer-
tainly not the CWM documents. Still, at least I
kept off the booze. Im feeling I dont know
distracted, perhaps. Its unfamiliar territory. Im
usually pretty focused. At least Im traveling
alone. At one point it looked like Id have to
babysit a mining analyst. The last thing I needed.
And now, several hundred miles east of Perth and
alone, Im amongst huge, blond, tanned and
freckled miners; well, the management team of
CWM at least. I dont suppose any of them has
ever actually confronted a coalface with pick in
hand. Theyre all mate to one another in public
but the politics are dirty. Last nights barbeque
saw all four of the senior guys take me aside for
a word, only to take metaphorical picks to one
another. So thatd be attractively undervalued
and distinctly vulnerable, along with poorly man-
aged.
Theres a mint to be made with this business. And
a decent corporate finance fee too.
Last nights barbeque also saw me failing to keep
off the booze. I tried to keep up with the CWM
boys and theyre drinking hard every night. A dis-
tinctly bad move and Im feeling utterly grim this
morning.
I return to my hotel room to prepare for the
day. With several shades of iridescent blue
plumage, a gorgeous bird sits on the window
ledge. A wren, Im sure, although Im no expert.
Ill ask Noel when I call home. Hell know. City
Dad will continue next Tuesday.
Lifestyle | Health
Scents for beating the chill
Vetivier by Annick Goutal
A modern classic, this deeply
sophisticated scent combines
rich depth with marine
saltiness: perfect for keeping
you up-beat. Spicy, woody,
marine Java vetiver, rare
woods, Birman spices, hint of
iodine). annickgoutal.com
Pulp by Byredo
A pungent hit of oozing, fresh
fruit, Pulp wakes you up better
than any coffee. Byredo notes
that he wanted: the flesh of
the fruit rather than the juice;
the very ripest pulp of a fig
mingles with red apples and
bergamot. byredo.com
Eau de Toilette by
Jimmy Choo
The new scent from the
famous shoe-maker, this
is a more mainstream
choice. With its
combination of crystalline
rose, orchid accents and
fresh ginger and pear on
a vibrant woody base, its
a surefire way to
revitalise.
theperfumeshop.com
Infusion d'Iris by Prada
Iris, orange blossom and
mandarin underpin this
enervating, original scent, while
unusual undertones of
galbanum, lentisc, benzoin and
cedarwood give it a clean, green
flavour thats perfect for darkest
winter. At deparment stores.
Tea For Two by
LArtisan Parfumeur
Smoky but fresh, this is
a black tea scent that
evokes coming in from
the cold and a gust of
aromatic warmth to
greet you. Earthy and
uplifting fragrance
without misleading
pretentions of summer.
liberty.co.uk
Dark Amber and
Ginger Lily
Cologne by Jo
Malone
The ultimate
indulgent evening
scent, full of the
warming sensuality of
lily, black orchid and
rare Kyara incense.
jomalone.co.uk
Geranium Pour Monsieur
by Frederic Malle
One of Odette Toilettes top
picks for winter: This is a gor-
geous minty mentholated gasp
without a hint of toothpaste in
sight. A lovely twist on the
cologne format which will not
fail to cheer up the most jaded of
nostrils. www.liberty.co.uk
Jungle Elephant by Kenzo
This is one of those perfumes that makes
you want to snuggle into yourself,
preferably cloaked in a cashmere
blanket. With its daringly rich blend of
cardamom, vanilla and patchouli notes, it
makes people want to be near you too.
Harrods, Boots and Duty Free.
S
o as Britains running stars head off to
Kenyan training camps ahead of the
London Marathon and 2012, tedious
stints on the treadmill seem even more
unappealing than usual. But with more and
more training add-ons available to compliment
your running, theres no need to go it alone this
spring.
THE FULL MONTY
If youre after the gold service in running add-
ons in the lead up to your big event, Nordic
Balance in leafy St James Square is working
alongside running company Run and Become to
offer their Front Runner Marathon Package. The
package includes everything from gait analysis
to injury rehabilitation. The best bit? It also
includes a fortnightly massage and a 60 minute
post race massage. One study measured the
effect of three massages a week on one leg of
study subjects vs no treatment on the other leg.
The massaged legs gained 4 per cent of flexibili-
ty and 13 per cent strength. Another study
found a 30 per cent reduction in post-exercise
muscle soreness and improved recovery follow-
ing regular massage.
www.nordicbalance.co.uk
THE RUN IN THE SUN
If youre serious about getting a personal best
this Spring, coached runs and one-to-one ses-
sions may prove invaluable if not hard going. To
take the edge off tough training, think about
heading abroad aux elites. Stars Gym
(www.starsgym.co.uk) isrunning a camp in the
Algarve from 22 March-1 April that includes
everything from coached runs to injury preven-
tion and nutrition sessions.
THE CLINIC ON YOUR DOORSTEP
If youre time-poor and still paying off the
Christmas Amex bill, Pure Sports Medicine have
just the solution: complimentary marathon
evenings. Its Injury Management and Last
Minute Tips event will be held on 28 Feb at the
Canary Wharf clinic and 29 Feb at its
Threadneedle St clinic. With sports doctors and
performance coaches on hand for you to pick
their brains, this is a must-do for Feb.
www.puresportsmed.comfor more info.
www.laurawilliamsonline.co.uk
Twitter: @laurafitness

OUT OF OFFICE
EAT DINNER WITH LUKE AND LEIA
The hottest dinner ticket in town next
week hails from a long time ago in a
galaxy far, far away. Star Wars fans
have the chance to attend a glitzy
three-course meal on 2 February at
the Park Lane Hilton, as the count-
down to the release of The
Phantom Menace in 3D begins.
Celebrity guests including
Star Wars creator George
Lucas will attend the event to
play a giant themed quiz.
As part of the count-
down, City A.M. is giving
readers the chance to
win a training session
with lightsaber guru
Nic Gillard, stunt
co-ordinator from
the Star Wars films. Gillard, who was
Mark Hamills stunt double in Return of
the Jedi, will teach you how to use the
force against some real life (ish)
Stormtroopers. You will then get the
chance to test your new skills against
City A.M.s Geek Speak columnist
Steve Dinneen.
For a chance to win the training ses-
sion, email the name of the name of Nic
Gillards cameo part in Revenge of the
Sith to steve.dinneen@cityam.com
or send a Twitter DM to
@Steve_Dinneen. Individual din-
ner tickets are 245 and tables
for 12 start at 2,940. For
bookings and further informa-
tion contact Fireball on:
020 8704 4141 or go to
starwarscharitydinner.com
The Rib Room
Jumeirah Carlton Tower, SW1X 9PY
FOOD hhiii
SERVICE hhhhi
ATMOSPHERE hhhii
Cost per person without wine: 65
E
lderly restaurants can be a bit
like grandparents demanding
of respect without doing very
much to deserve it. They have a
tendency to rest on their laurels: the
hard work has been done, now its
time to milk the cash cow (or, in most
cases, cut slices off it and feed them to
the guests). You visit them from time
to time, but only because you feel you
probably should.
There is one fundamental problem
with that strategy as restaurants get
older, so do the clientele. And old peo-
ple, inevitably, reach a point when
they stop going to restaurants. So,
eventually, you get in a trendy
designer and a new chef and you
hope itll be enough to pull in a load
of bright young things. Such is the
case with the Jumeirah Carlton,
whose The Rib Room, at over 50-
years-old, comfortably outdates the
hotels current owners. Refitting
such an elder statesman is a danger-
ous business. What you dont want is
to dress grandma in a tracksuit (I
tried once, she looked ridiculous).
It walks the tight-rope pretty well.
opting for traditional green leather
and starched white tablecloths hard-
ly blazing a trend-trail but certainly
the safe option. The one thing it cant
get away from, though, is that its still
in a hotel and, with a few excep-
tions, there is something very depress-
ing about hotel restaurants. You can
always tell apart the guests from the
casual diners. Those staying in the
hotel look jaded. Couples speak less,
or not at all, presumably unused to
spending so much time together
(when they recall the meal in a couple
of months, of course, it will be as a
blissful dining experience, complete
with free-flowing conversation). Being
surrounded by silent, brooding, jet
lagged couples is hardly the best aper-
itif (hotels, though, do come with
some advantages my guests
toothache was assuaged by a handy
Nurofen delivery that you probably
wouldnt get at Tom Aikens).
The pre-dinner gin & bitters experi-
ence is mandatory, Im told, with the
white-jacketed barkeep serving up var-
ious gin-based concoctions. I arrived
early enough to squeeze in an ill
advised Royal Chase too a cocktail
with such a kick I was tipsy by the
time the starters arrived.
The menu is modern British, cour-
tesy of new head chef Ian Rudge, who
has jumped over from Nigel
Haworths Michelin-starred
Northcote. Disappointment at the size
of the scallops didnt last long. You
dont expect them to be anything less
than delicious. They were. The pump-
kin soup was pleasant in the way
pumpkin soup is not the most
inspiring of choices but you cant
account for the tastes of your guest.
Anything calling itself The Rib
Room, though, stands or falls on the
quality of its ribs: you cant hide from
the name over the door. There are
only actually two rib options on the
menu, which makes it more of a rib
annexe than a rib room. I went for the
roast rib of Casterbridge beef with
Yorkshire pudding, which was as
intimidating as it should be a gigan-
tic pink hunk of dead cow. It was
cooked well enough rare as all hell
but that couldnt disguise the fact
that it wasnt a great cut of meat. It
was OK, but to devour a 42 chunk of
animal, it has to be more than that.
When I conceded defeat around half
way through, my plate looked like the
sweepings from a slasher-horror film
set; the kind of thing that would give
calves nightmares.
The apple souffle was interesting
and Im using the British definition of
interesting, which translates as not
very nice. It tasted a bit like someone
had taken a blowtorch to the top of a
bowl of whisked baby food. The ginger
parkin was better but it was still a
sobering end to the meal (probably
just as well after the cocktails).
There is nothing really wrong with
The Rib Room, there just arent very
many reasons to gush about it. The
wine was well matched, the service
exemplary but the prices more than a
little on the steep side. The silent cou-
ples glowering from the booths will
probably be able to rewrite it as an
excellent meal by the time they fly
home. It wasnt enough to inspire
them to pass much comment at the
time, though.
The Carltons eatery turned 50 last year, celebrating
with a refurb and new chef. But has it worked?
The Rib Room is
okay... but thats it
The Rib Room
has played it safe
with its refurb,
sticking to clas-
sic green leather
and amber
Restaurant review
WORDS BY
STEVE DINNEEN
www.ballsbrothers.co.uk
MINSTER PAVEMENT MINCING LANE EC3R 7PP LONDON
Our new restaurant
is now open. Join us for lunch
Mon-Wed before 16th Feb and
get 50% off your food bill
Tables must be booked in advance.
Please call 020 7283 2838 or email
minster@ballsbrothers.co.uk
.
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Friday nights
at minster exchange
just got better
Join us for an unrivalled night of unbridled decadence
and 1920s hedonism. Live music, flapper hostesses,
giveaways, delicious canaps & cocktails.
Friday january 27
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PRISONERS WIVES
BBC1, 9PM
Drama about a woman whose
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mothers she meets at the prison.
ALEX POLIZZI: THE FIXER
BBC2, 8PM
In this new series, entrepreneur Alex
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searches for an arsonist. 11pm
Bones 12amCSI: Crime Scene
Investigation 1amCriminal
Minds 2.40amMy Wife and Kids
3.30amBones 4.20amCSI:
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5.10am-6amJerry Springer
BBC THREE
7pmWinter Wipeout 8pmDont
Tell the Bride 9pmJunior
Doctors: Your Life in Their Hands
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Britain 11pmFamily Guy
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12.30amJunior Doctors: Your
Life in Their Hands 1.30amDont
Tell the Bride 2.25amYoung
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4.25am-5.25amBritains Gay
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E4
7pmHollyoaks 7.30pmHow I
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90210 10pmThe Cleveland
Show10.30pmBobs Burgers
11pmSirens 12amThe Big Bang
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7pmMounted in Alaska 7.30pm
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Cash Cowboys 3amClash of the
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5am-6amAmerican Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmRory McGraths Best of
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Loggers 11pmDeadliest Catch
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7.30pmGot to Dance: Semi-
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35mm12.40amDog the Bounty
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Road Wars 4.20amProject
Catwalk 5.10am-6amDont
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BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders; BBC News
8pmHolby City
9pmCHOICE Prisoners Wives:
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmMatch of the Day
12amFILMDeadly Pursuit:
Thriller, starring Sidney Poitier.
1988. 1.45amWeatherview
1.50amSign Zone: The Manor
Reborn 2.50amSign Zone: Natures
Miracle Babies 3.50amSign Zone:
Hairy Bikers Best of British
4.35am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys Goes to Ireland
7pmHairy Bikers Best of
British: The history behind
cheese and preserved foods.
8pmCHOICE Alex Polizzi:
The Fixer:
9pmWonderland My Child
the Rioter:
10pmHave I Got Old News for
You
10.30pmNewsnight; Weather
11.20pmRubicon
12.05amRubicon
12.50amBBC News
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
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8pmThe Exit List
9pmThe Biggest Loser:
A shocking twist awaits the
contestants at the weigh-in.
10pmITV News at Ten
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10.35pmBenidorm
11.35pmHomes from Hell
2009
12.30amThe Zone; ITV News
Headlines
3.05amCrossing Jordan
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at Sea: The Sinking of the
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12.55amInside Hollywood:
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4.20amNicks Quest 4.45am
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Michaelas Wild Challenge
1 2 3 4 5
6
7 8
9 10
11
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9 9 12
45
29 20
15 3 6
10 11
12 10
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34
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11
5
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13
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 Loft (5)
4 Cry (3)
6 Severe and intense (5)
7 Lesson (5)
9 Line touching
a curve (7)
11 Dentists consulting
room (7)
13 Idealistic (but usually
impractical) social
reformer (7)
15 Person with a record
of failing (2-5)
16 Move to music (5)
17 Anoint with oil (5)
18 Melancholy (3)
19 Picture puzzle (5)
DOWN
1 Confront, solicit (6)
2 Hindu social class (5)
3 Bright and
pleasant (5)
4 Formal separation
from an alliance or
federation (9)
5 Thai currency unit (4)
8 Pointed tip of a
dart-like weapon (9)
10 Sharp, narrow ridge
found in rugged
mountains (5)
12 Not if (6)
13 Distressed (5)
14 Arrange (5)
15 Tidings (4)
E
T
E
N
R M
M
O
O

4

4

B I P E D W O R K S
A R I C E U T
S L O E S L E M U R
E L M T L B U
D A S H I N G A T M
M N R R
F A T C R O A T I A
L W T O Y O B
O M A N I M E S S Y
S I V I E O S
S E N S E D E N I M
9 2 4 2 1 3 8
4 1 8 9 5 8 9
8 3 9 4 6 2 7
3 1 6 2 3 1 4
2 5 8 6 9
1 4 7 9 2 3 8 5 6
8 6 1 2 8
5 7 9 8 7 9 8
2 1 6 3 2 6 1
1 8 1 9 3 3 5
3 9 2 3 1 7 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
TRIMESTER
Lifestyle | TV&Games
CITYA.M. 31 JANUARY 2012 44
Sport
Laureus World Sports Awards, London, 6 February
I
N LESS than a week, Wimbledon champion
Petra Kvitova will find out if she can add the
prestigious Laureus Statuette to the historic
silver salver she won on Centre Court last
July, after beating Maria Sharapova in the ladies
final.
The Czech Republics Kvitova is one of the
favourites to win the 2012 Laureus World
Sportswoman of the Year Award and at 21
she would be the youngest ever to do so.
The winners of all Laureus World Sports
Awards will be revealed during a spectacular
celebration of the sporting heroes of 2011 at
Central Hall, Westminster, on Monday 6
February.
These are the most valued awards in sport
because the winners are chosen by the 47
members of the Laureus World Sports
Academy, all living legends.
Interestingly, among them is tennis great
Martina Navratilova, who was Kvitovas child-
hood hero.
Czech grand slam winner faces competition from track stars
Cheruiyot and Jeter for Laureus World Sportswoman of Year
Wimbledon champ
Kvitova serves up
awards challenge
PETRA KVITOVA
(Czech Republic) Tennis
At 21, beat Maria Sharapova
in straight sets to win
Wimbledon, her first Grand
Slam. Her other highlight
came in October when she
won the WTA Championships
in Istanbul, beating Victoria
Azarenka in three sets. Left-
handed Kvitova is known for
her powerful serve.
CARMELITA JETER
(United States) Athletics
Became the fastest woman in
the world when she won the
100m gold medal at the World
Championships in Daegu in
August. Jeter added more gold
by helping the USA win the
4x100m relay and also took
silver in the 200m. Currently
holds three of the top 10 100m
times ever run.
MARIA HOEFL-RIESCH
(Germany) Alpine Skiing
Won Alpine skiing World Cup for
the first time, after battling with
Lindsey Vonn, pipping her rival
by three points. During the sea-
son she won seven times two
Downhills at Lake Louise and
another at Cortina, a Slalolm at
Flachau, a Super Combined and
a Super G at Are and the Nations
Team Event at Lenzerheide.
T
H
E

N
O
M
I
N
E
E
S
VIVIAN CHERUIYOT
(Kenya) Athletics
Established herself as one of
the great distance runners by
her generation after winning
5,000m and 10,000m gold at
the World Championships. In
the 5,000m, she ran a final
kilometre of 2 mins 41.76 secs,
the fastest in the competitions
history. Also won the World
Cross-Country Championship.
YANI TSENG
(Taiwan) Golf
The star of womens golf in
2011. At just 22, won two
Majors and headed the LPGA
money list by almost US$1.5m.
She was LPGA Player of the
Year for the second straight
time. The youngest player,
male or female, to win five
Majors. In 2011, she also won
eight other tournaments.
HOMARE SAWA
(Japan) Football
Captained Japan to its first
ever Women's World Cup win,
beating the United States 3-1
in a penalty shootout in the
final. She was also awarded the
Golden Boot for being the
leading scorer and the Golden
Ball for being the top player.
Sawa has played more than
170 times for Japan.
ONE lucky City A.M. reader will win two money-cant-buy
invitations to the Laureus World Sports Awards and VIP
after party. To enter, answer these two questions:
A. Who is Laureus Academy Chairman?
B. Where in London is the Awards Ceremony being
held?
Send entries, with a telephone number, to lucky@cityam.com by midnight tonight. For full terms and conditions visit
www.cityam.com/laureus
LAST CHANCE: WIN A PAIR OF INVITATIONS
Wimbledon was Kvitovas
first grand slam title
Picture: ACTION IMAGES
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email sport@cityam.com
SPORT | IN BRIEF
Terry to miss Swansea clash
FOOTBALL: Chelsea defender John Terry
will miss tonights Premier League match
at Swansea City just hours before his
court case for allegedly racially abusing
Anton Ferdinand is due to begin. Chelsea
are adamant that their captains absence
is due to a knee injury and in no way con-
nected to the hearing, which starts
tomorrow.
Van Persie avoids FA sanction
FOOTBALL: The Football Association has
ingored Aston Villa manager Alex
McLeishs plea to investigate Arsenal cap-
tain Robin van Persies alleged elbow on
defender Carlos Cuellar during Sundays
FA Cup defeat at Emirates Stadium.
R
OBERT ROCK took Sundays victo-
ry at the Abu Dhabi
Championship with all the
humility and good grace youd
expect from one of the nicest guys on
the circuit, capping a hugely encourag-
ing week for European golf.
The 34-year-old seemed genuinely
taken aback by what he had accom-
plished in holding off the challenge of
a stellar field and I hope this break-
through injects him with a confidence
that will allow him to believe he
belongs in such exalted company.
Rock suffered a bit of a hairy
moment on the final hole but over-
came that scare and kept his emotions
in check when some more experi-
enced players may well have crumbled.
That, more than any other aspect of
his win, should stand him in good
stead for the future.
Qualifying for the Ryder Cup is now
a realistic target and appearing in the
years showpiece event should provide
enough of an incentive for him to
ensure he kicks on from here.
SCHOOLBOY ERROR
Ultimately, as well as Rock played, had
Rory McIlroy not committed a school-
boy error in the second round, the US
Open champion would have walked
away with the spoils.
The Northern Irishman can have
no complaints at the two-shot penalty
he incurred after he brushed sand
away from his line on the ninth hole.
It may sound like a trivial offence but
all players are aware of the rules and
if you dont abide by them you suffer.
Its a reminder that despite his
rapid ascent, McIlroy is still a baby in
golfing terms and hell have to go
through and learn from these experi-
ences before he becomes the champi-
on golfer we expect him to become.
All of the big players will be using
these tournaments to fine-tune their
games ahead of the Masters at
Augusta in April and although I did-
nt think McIlroys overall game was
at the level hed want it to be last
week, Im sure hell take encourage-
ment from the fact that he was so
close to winning a lucrative title.
By contrast, the way Tiger Woods
unraveled in the final round would
put me off predicting hes ready to
win a Major this year. I still think hell
have a strong season, but until he
stops the near constant analysis of his
swing hell struggle to get over the
line at the big tournaments.
My advice would be to relax, keep it
simple and just tee it up and play as
he would have done when he first
learnt to play the game. The rest will
take care of itself.
Sam Torrance OBE won 21 European Tour
titles and is a former Ryder Cup captain.
Follow Sam on twitter @torrancesam.
Time for solid Rock to kick on
Englishman should
be inspired by his
landmark win and
Ryder Cup incentive
GOLF COMMENT
SAM TORRANCE
Rock finished one
shot ahead of McIlroy
at in Abu Dhabi
Picture: ACTION
IMAGES
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Djokovic eyes French Open final Monty blames himself
HE MAY have proven himself the
undisputed king of the mens game
with his gruelling Australian Open
triumph, but Novak Djokovic has
already identified his next target.
The world No1, who beat Rafael
Nadal in Sundays six-hour epic, has
set his sights on reaching the final of
the French Open, the only grand slam
he does not currently hold, and is
convinced he can do it.
I want to do well and get to my
first final at least in Paris, he said. I
have never been to the final there and
I have a feeling that I am ready this
year to achieve that.
Djokovic, 24, has reached the semi-
finals at Roland Garros three times,
including last year when he lost to
Roger Federer. The Serb is also keen to
add Olympic gold to his growing list
of honours.
He added: Im prioritising the
grand slams and the Olympics. That
doesnt mean I wont perform my
best at other tournaments but its the
grand slams that matter most.
BY FRANK DALLERES
TENNIS
ENGLAND spinner Monty Panesar has

attempted to deflect criticism from
his sides struggling batsmen by
claiming he could have done more to
avert Saturdays embarrassing 10-
wicket defeat against Pakistan.
England were dismissed for 72 and
conceded the series, but Panesar, who
took seven wickets in the match, felt
he could have better restricted
Pakistan in their first innings.
Maybe I let the team down in the
first innings, said Panesar, who made
a successful return to the side after a
two-and-a-half year absence. I didnt
take wickets at a quick enough rate.
[Graeme] Swann kind of carried me.
BY JAMES GOLDMAN
CRICKET
QPR move for

Cisse as clubs
eye deadline
ROUND-UP | LATE MOVES
Gunners in for German teen
ARSENAL are in negotiations with
Borussia Dortmund over the transfer
of 19-year-old German midfielder
Thomas Eisfeld. The teenagers path
to Dortmunds first team has been
blocked by another Gunners target
Mario Goetze and hindered by a
series of knee injuries. Meanwhile,
manager Arsene Wenger will let
Japanese winger Ryo Miyaichi
depart on loan, but only to another
Premier League club Bolton have
registered an interest.
Blues bag Bruyne
CHELSEA are
today expected to
complete the
6.7m signing of
Genk midfielder
Kevin de Bruyne after
the 20-year-old under-
went a medical. De Bruyne (inset),
who faced Chelsea in the group
stages of this seasons Champions
League, will see out the remainder of
the campaign with the Belgian side.
Corluka set for Spurs exit
VERSATILE Spurs defender Vedran
Corluka is set to complete a loan
move to Bundesliga side Bayer
Leverkusen today. Corluka has found
first team opportunities hard to
come by this season following right-
back Kyle Walkers emergence and
will join Bayer, who face Barcelona in
the next round of the Champions
League, until the end of the season.
Meanwhile, youngster John Bostock
has joined League One outfit
Sheffield Wednesday on loan.
Fulham chase striker
FULHAM manager
Martin Jol looks cer-
tain to bring at least
one striker to Craven
Cottage on deadline
day. Russia international
Pavel Pogrebnyak was in
London for talks over a pro-
posed move from Stuttgart yester-
day. Jol has also registered an
interest in Wigans wantaway for-
ward Hugo Rodallega (inset) and
Borussia Dortmunds Lucas Barrios.
QPR will go to the wire in a dra-
matic last ditch attempt to bol-
ster their squad with as many as
four new additions, including
flamboyant 4m Lazio striker
Djibril Cisse, before tonights
transfer deadline.
A frantic last day of comings
and goings is expected following
three weeks of relative inactivity
throughout the Premier League,
with just 30m spent in total so
far compared to last years record
busting 225m bonanza.
Top flight strugglers QPR yes-
terday kicked off their last
minute spree by completing the
loan signing of Mali midfielder
Samba Diakite from Nancy and
are hopeful of injecting experi-
ence and pace into their forward
line in the shape of maverick
France forward Cisse.
Manager Mark Hughes may yet
resurrect his interest in
Blackburn skipper Christopher
Samba, who handed in a transfer
request this month, while the
west London club are also under-
stood to be considering a 4m bid
for Montpellier striker Olivier
Giroud. Hughes, who took charge
earlier this month following Neil
Warnocks departure, has already
been busy.
Last week he signed 2.5m
Manchester City defender
Nedum Onuoha and landed AC
Milan left-back Taye Taiwo on
loan until the end of the season,
and remains optimistic of con-
cluding further deals before the
11pm deadline.
We are hopeful of doing a lit-
tle bit more before the window
closes, Hughes, whose side travel
to Aston Villa tomorrow, said yes-
terday. We are involved in a
number of deals so we will just
have to wait and see.
Of their intended targets, for-
mer Liverpool and Sunderland
striker Cisse, 30, is the name
most likely to excite the Loftus
Road faithful.
The 41-cap international has
failed to settle at Lazio since a
summer move from
Panathinaikos and was last night
closing in on a third spell in
England.
Djibril Cisse is a player that I
admire. He knows the Premier
League and I think he would be
good for us, added Hughes.
Maverick French striker ready to join Loftus
Road revolution with transfer activity set to
increase on the closing day of January sales
BY JAMES GOLDMAN
FOOTBALL
Cisse is set for a

third spell in the
Premier League
Picture: ACTION
IMAGES
WOODS MUST STOP OVER
ANALYSING HIS SWING
SAM TORRANCE ON TIGER,
ROCK AND MCILROY: PAGE 45
47
FORMER Wales manager Gary Speed
may have killed himself accidentally, a
coroner ruled yesterday, despite hearing
evidence that the 42-year-old talked in
terms of taking his life in the days
before his death.
Speeds widow Louise said the couple
had argued on the November night
before he was found hanged in his
garage, and that his job had put a strain
on their marriage. Cheshire coroner
Nicholas Reinberg gave the cause of
death as hanging but recorded a narra-
tive verdict, saying there was insuffi-
cient evidence to determine whether
Speed had intended to take his own life.
Reinberg added that the former
Leeds, Newcastle, Everton and Bolton
midfielder could have nodded off
while sitting on the stairs with cable
tied around his neck.
No note was found and doctors said
Speed had shown no signs suffering
from mental health issues.
FOOTBALL
Speed death accident riddle

New England captain Robshaw
eager to make up for lost time
Speed was found hanged in his garage in November Picture: ACTION IMAGES
THE DISPUTED payments at the cen-
tre of Tottenham manager Harry
Redknapps tax evasion case were not
bonuses but seed money to help
him build an investment portfolio,
his co-accused Milan Mandaric told a
court yesterday.
Former Portsmouth chairman
Mandaric said he transferred a total
of 189,400 into an offshore account
opened in the name of Redknapps
pet dog, Rosie, because he wanted to
do something special for him as a
friend.
Mandaric, now chairman of
Sheffield Wednesday, added
that the cash was voluntary
and absolutely nothing to
do with Redknapp (right)
being under his employment
at Portsmouth between
2001 and 2004 and from
2005 until he
s t e p p e d
aside in
2006.
T h e
73-year-
o l d s
t es t i -
mony, under cross-examination from
his defending barrister, Lord
MacDonald QC, contradicted what
jurors heard last week, and came as
the high-profile trial at Southwark
Crown Court entered its sixth day.
On Tuesday the prosecution read
out a transcript of an interview with a
journalist in which Redknapp insist-
ed the two payments were legitimate
bonuses he was due for making a
profit on the sale of striker Peter
Crouch.
Mandarics explanation was consis-
tent with what he himself was said to
have told police, however, and also
backed up Redknapps own
assertion to detectives that
he believed any tax due
on the money had been
paid by Mandaric in the
United States.
Redknapp, the
favourite to be next
England manager, and
Mandaric both deny
charges of cheat-
ing the public
revenue over two
payments alleged
to have been made
between April
2002 and
November 2007.
The trial con-
tinues.
BY FRANK DALLERES
FOOTBALL
NEW England captain Chris Robshaw

doubted he would ever represent
his country again following
his omission from last
years World Cup squad.
The 25-year-old
Harlequins skipper was
yesterday installed as
England captain for the
first two matches of the
Six Nations by interim
head coach Stuart Lancaster.
Robshaw was snubbed by pre-
vious head coach Martin Johnson and
admitted he used that disappoint-
ment as a motivating factor going into
the new season. You dont get many
opportunities to play for your country
so it was a very hard to take, Robshaw
(inset) said. I used that motivation
going back to Harlequins, but of
course you doubt yourself.
Lancaster, insisted he had no
hesitation handing the cap-
taincy to a player who will
win only his second cap
against Scotland on
Saturday, but was coy
when asked whether Tom
Wood, out injured for at
least the opening two match-
es of the tournament, was his
first choice for the role.
Tom hasnt trained so we didnt get
a chance to get that point, said
Lancaster. Toms priority is to get fit
again and get into the team.
BY JAMES GOLDMAN
RUGBY UNION
Redknapp cash
not a payment,
says Mandaric
Former Portsmouth chairman tells court that 189k
transfer was seed money for Spurs boss to invest in
portfolio not a bonus for profit from player sales
Armitage axed
following arrest
LONDON IRISH full-back Delon
Armitage yesterday became
the latest victim of the Rugby
Football Unions new hardline
approach to dealing with off-
field indiscretions after he was
axed from the England Saxons
squad. The 28-year-old was
arrested and detained
overnight in Torquay following
allegations of a nightclub alter-
cation after Armitage featured
in the Saxons victory over Irish
Wolfhounds on Saturday.

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