Cityam%202013-05-16

BUSINESS WITH PERSONALITY 

HURLINGHAM 7 TH /8 TH /9 TH JUNE 2013 

www.mintpolointhepark.com

WHERE LONDON COMES OUT TO PLAY 

HURLINGHAM 7TH /8TH /9TH TH TH TH 

HURLINGHA AM M 7 / /8 /9 JUNE 

2013 

Tickets on sale now through Ticketmaster ® Tickets 

on salee 

now 

through 

TTicke 

etmaster : 0844 00844 

248 5069 

www.mintpolointhepark.com 

www. .mintpolointhepark.com

London. 

Business. 

Masters. 

TRAVEL group Thomas Cook is 

this morning expected to unveil 

plans to raise around £400m 

through a share placing and 

rights issue as the company’s 

turnaround gathers pace. 

The business, which recorded an 

enormous £590m loss during the 

2010/11 financial year, has focused 

on cutting jobs and closing retail 

outlets to deal with a massive 

£1.56bn debt pile. 

The FTSE 250 company is also 

expected to announce new longterm 

banking facilities according 

Sir Mervyn King is 

upbeat on growth 

Thomas Cook in £400m fundraising plan 

BY JAMES WATERSON 

to Sky News, who first reported 

the story. 

Shareholders are unlikely to 

complain about today’s muchtrailed 

placing given the 

company – written off by the 

markets last year as on the brink of 

collapse – has seen an astonishing 

turnaround following last July’s 

appointment of chief executive 

Harriet Green. 

Green’s decisive action has seen 

her close around 200 high street 

stores, sack more than 2,000 staff 

and off-load non-core divisions 

such as the company’s North 

American business. 

BUSINESS WITH PERSONALITY 

KING HEADS TO NY 

MARK KLEINMAN ON THE BANK 

GOVERNOR’S NEXT MOVE Page 9 

www.cityam.com FREE 

TWO-SPEED EUROPE 

ISSUE 1,881 THURSDAY 16 MAY 2013 

BY TIM WALLACE 

BRITAIN’S economy is getting back on its feet 

and “a recovery is in sight”, Bank of England 

governor Sir Mervyn King said yesterday. 

Fears of a triple dip recession have been 

eradicated, employment increased by tens of 

thousands in March and the UK is rebalancing 

towards sustainable export growth. 

The spurt of growth stands in stark contrast 

to the gloom in Europe, where France has 

plunged back into recession and even 

Germany is barely keeping its head above 

water. 

“There is a welcome change in the economic 

outlook – growth is likely to strengthen 

over the course of the year,” King predicted. 

“That is the first time I have been able to say 

that since before the financial crisis.” 

He believes growth will pick up from 0.3 per 

cent in the first quarter to 0.5 per cent in the 

second quarter. 

And chancellor George Osborne last night 

argued the positive forecasts mean critics like 

the International Monetary Fund are wrong 

to call on him to spend and borrow even 

more money. 

“The most recent economic news has been 

more encouraging. The economy is growing. 

Surveys are better. Confidence is returning to 

financial markets,” he told the Confederation 

of British Industry last night. 

“Our plan is working. Now is not the time to 

lose our nerve. Let’s not listen to those who 

would take us back to square one. Let’s carry 

on doing what is right for Britain.” 

Osborne urged the Bank of England to continue 

pumping cheap money into the economy, 

in a sign that incoming governor Mark 

Carney will keep monetary policy very loose. 

And the chancellor also said he is pushing 

for more supply-side reforms – 

typically cutting red tape and 

taxes – in an effort to get businesses 

growing and exporting 

more. 

The CBI backed the chancellor, 

arguing the deficit reduction 

plan is the only option. 

“Whilst siren voices may suggest 

relaxation – in the words of 

Baroness Thatcher, ‘this is no time to 

wobble, George’,” said CBI 

president Sir Roger Carr. 

Interested in studying a 

world-class Masters part-time? 

MSc in Finance & Investment 

MSc in Wealth Management 

BY JULIAN HARRIS 

Investors have been delighted by 

her plan and over the last six 

months shares in the business have 

gained 587 per cent, rising from 

just 21p to yesterday’s closing price 

of 144.7p. 

Green has herself benefited 

financially from the share price 

rise, having bought 500,000 shares 

for 23p each last November in a 

show of confidence. 

The 172-year old group had been 

in the doldrums after failing to 

keep up with changing consumer 

habits. As part of its turnaround 

plan the company wants half of all 

sales made online. 

THE EUROZONE is mired in its longest ever 

recession, with figures from Brussels revealing 

yesterday that the single currency area began 

2013 by sinking to a sixth consecutive quarter 

of contraction. 

GDP was down 0.2 per cent in the first quarter 

of the year compared to the end of 2012, 

and economists expect the ailing currency 

bloc to experience yet another drop in the 

second quarter. 

The financial crisis prompted a more severe 

hit in 2008 and 2009, yet the slump was 

shorter-lived, lasting for five quarters. 

Unemployment in the area has 

climbed to 12.1 per cent, statistics 

revealed last month. 

Yesterday’s data also showed that the 

Eurozone’s second largest economy – 

France – has fallen into another official 

recession. French GDP sank 0.2 per 

cent in the three months to 

March, continuing 

a 0.2 per cent 

decline in the previous 

quarter. 

“The core is 

now as rotten as 

FTSE 100▲6,693.55 +7.49DOW▲15,275.69 +60.44 NASDAQ ▲3,471.62 +9.01 £/$ ▲1.523 +0.001 £/€ ▲1.182 +0.005 €/$ ▲ 1.288 +0.005 

the periphery,” commented Hector McNeil, 

chief exec of City firm Boost ETP. “The distinction 

between the two is now all but meaningless, 

as even German growth has slipped to 

negligible levels and France’s economy is wilting 

faster than President Francois Hollande’s 

re-election prospects.” 

Germany, often seen as the powerhouse 

economy of the euro area, saw its economy 

grow by just 0.1 per cent in quarter one, the 

estimates showed – having shrunk by 0.7 per 

cent the previous quarter. 

The bloc’s next two largest economies, Italy 

and Spain, were both down another 0.5 per 

cent. Economies also shrank in member states 

Finland, Cyprus, the Netherlands, Portugal, and 

Greece. 

There was a glimmer of light for Greece yesterday, 

however, as an upgrade of its sovereign 

credit rating caused Greek 10-year government 

bond yields to plummet to their lowest level 

since June 2010. 

Ratings giant Fitch lifted Greece to B-minus 

from CCC on Tuesday night. 

The yields, which were over 30 per cent as 

recently as last summer, reacted by sinking as 

low as 8.16 per cent during yesterday’s trading, 

and were around 8.8 per cent last night. 

MORE ON UK / EUROZONE: Pages 2-3, 20 

Find out more at our lunchtime online information session 

Date: 4 June 2013 

Sign up: www.cass.city.ac.uk/masters/online-infosessions 

▲ ▲ 

Bloomberg data row escalates 

as JP Morgan demands records 

BY KATIE HOPE 

THE Furore over how Bloomberg 

used client data intensified last 

night after JP Morgan said it had 

sent a formal legal request to the 

financial news agency to clarify 

what information reporters had 

access to. 

The US bank, one of Bloomberg’s 

largest customers, said it was 

seeking logs for five years detailing 

what information on their 

employees’ use of terminals 

reporters had accessed. 

JPMorgan said it was also seeking 

“confirmation” of controls that 

Bloomberg has put in place to stop 

future privacy breaches. 

Bloomberg came under fire last 

week after it emerged reporters may 

have had access to users’ login 

details, functions and help desk 

inquiries. 

Bloomberg’s editor-in-chief has 

apologised for the errors, saying 

reporters should never have had 

access to the information. 

Certified Distribution 

from 25/02/13 to 31/03/13 is 128,174

2 NEWS 

High Speed 2 

sums slammed 

by watchdog 

BY MARION DAKERS 

THE GOVERNMENT has so far 

failed to make the business case 

for building the High Speed 2 train 

link, the National Audit Office 

said in a report out today. 

The NAO warned of a £3.3bn 

funding gap in the £33bn scheme, 

and said the government has made 

poor arguments to support the 

claim that faster rail travel to the 

north of the country will help 

rebalance the economy. 

It also pointed out past errors 

and outdated information in the 

benefit-cost calculations on the 

scheme and concluded that the 

timetable is “overambitious”. 

“It’s too early in the High Speed 

2 programme to conclude on the 

likelihood of its achieving value 

for money,” said NAO head Amyas 

Morse. “Our concern at this point 

is the lack of clarity around the 

[Department for Transport’s] 

objectives. The strategic case for 

the network should be better 

developed at this stage.” 

Transport secretary Patrick 

McLoughlin brushed off much of 

the criticism. “I do not accept the 

NAO’s core conclusion,” he said in 

a statement. “We are not building 

HS2 simply because the computer 

says ‘yes’. We are building it 

because it is the right thing to do 

to make Britain a stronger and 

more prosperous place.” 

US freezes Bitcoin accounts 

US authorities have seized bank accounts 

belonging to the world’s biggest Bitcoin 

exchange, marking a signature moment in 

their dealings with the virtual currency. 

The Department of Homeland Security 

won court orders freezing two accounts 

used by Mt Gox, the Japanese exchange 

which accounts for more than half of all 

trades between Bitcoin and governmentbacked 

currencies. Lawmakers have 

expressed concern Bitcoin could be used 

to evade checks against money 

laundering and terrorist financing. 

Households crushed by 

huge drop in real wages 

BY MICHAEL BIRD 

AVERAGE earnings grew by a paltry 

0.4 per cent on the year this March, 

the smallest rise on record 

according to official figures 

published yesterday. 

At the same time prices jumped 

2.8 per cent on the consumer price 

measure and 3.3 per cent on the 

retail price, hitting households 

hard as pay packets no longer 

stretch as far. 

The picture is even bleaker for 

finance and business services 

workers – including bonuses, their 

weekly pay plunged 3.8 per cent on 

the year, even before inflation is 

taken into account. 

Earnings growth for government 

employees has been cut from two 

per cent in January to 1.2 per cent, 

but still remains considerably 

higher than private sector 

increases, fuelling fears that the 

coalition’s pay freeze remains 

ineffective. 

“The weakness of pay growth 

relative to inflation, currently 

running at 2.8 per cent, will be a 

concern to the Bank of England, as 

squeezed incomes will limit 

economic growth,” said Chris 

Williamson from Markit. 

After accounting for inflation, 

real wages have been falling 

constantly since 2009, as workers 

Banker to chair media group Mecom 

Mecom, the struggling European 

newspaper publisher, is to appoint a 

veteran banker as its chairman as 

investors ramp up pressure to sell assets. 

The London-listed firm is to appoint Rory 

Macnamara, a former M&A banker at 

Deutsche Morgan Grenfell. 

Tractor maker hit by poor weather 

John Deere shares fell more than four per 

cent yesterday as the agricultural 

equipment maker cut its full-year sales 

forecast because of global financial 

“pressures” and bad weather in the US. 

REAL WAGES SLIDE FOR FOUR YEARS 

6.0 

5.0 

4.0 

3.0 

2.0 

1.0 

Change on the previous month 

Wage growth 

Inflation 

Mar ‘06 Mar ‘07 Mar ‘08 Mar ‘09 Mar ‘10 Mar ‘11 Mar ‘12 Mar ‘13 

MegaFon dividend boosts Usmanov 

Russia’s richest man stands to become 

more than £250m richer after a Russian 

mobile phone operator announced plans 

for a huge dividend payout yesterday. 

Alisher Usmanov, who is also a major 

shareholder in Arsenal Football Club, is 

already worth £11.6bn. 

Barclays accused of stealing deal 

Barclays will appear in court today 

accused of going behind a client’s back to 

steal a £100m deal for itself. Barclays 

denies all the allegations. 

Equitable Life victims’ details lost 

The Equitable Life scandal has taken a 

fresh turn as the Treasury admits to 

destroying disc containing 350,000 

victims’ names at an inquiry into the failed 

insurance company yesterday. 

Camilla joins credit union 

The Duchess of Cornwall is applying to join 

a credit union to support their bid to 

tackle payday lenders. Camilla yesterday 

met staff and members of the London 

Mutual Credit Union in Peckham. 

To contact the newsdesk email news@cityam.com 

Private sector workers’ pay frozen –but not public sector 

ZERO per cent. Yes, that’s right, a 

big fat zero: that was the rate by 

which total pay went up in the 

private sector in the first three 

months of the year, compared with 

the first quarter of 2012. 

The private sector is going through 

an actual, full-on pay freeze, with 

falling bonuses entirely cancelling 

out the meagre 0.8 per cent hike in 

regular pay. Some parts of the private 

sector are seeing substantial declines 

in pay. It’s a remarkable situation 

that, as far as I know, not a single 

economist predicted for this stage of 

the economic cycle. 

Given that inflation is currently at 

3.3 per cent on the retail price index 

measure, that means that the average 

private sector pay packet purchased 

substantially fewer goods and services 

in March than it did 12 months prior 

to that date. A 3.3 per cent real terms 

EDITOR’S 

LETTER ALLISTER HEATH 

WHAT THE OTHER PAPERS SAY THIS MORNING 

pay cut is hugely significant; there 

was a time when it would have been 

assumed impossible and unsustainable. 

In the past, such a collapse and gulf 

between cost of living increases and 

wages would have triggered irresistible 

demands for more pay – but 

the labour market has become so flexible, 

staff so aware of the difficult situation 

and the competition for jobs 

presumably so fierce that pay pressures 

are actually abating, rather 

THURSDAY 16 MAY 2013 

than increasing. Remarkably, we are 

nearing a non-Keynesian world where 

private sector wages might even 

sometimes fall in nominal terms. 

The good news is that workers are 

repricing themselves into the labour 

market at an accelerating rate. Total 

hours worked per week were 950.3m 

for January to March 2013, up 2.4m 

from October to December 2012 and 

up 20.2m on a year earlier. This 2.1 

per cent rise in the number of hours 

worked, during a time when the economy 

broadly stagnated, suggests a further 

drop in productivity on that 

measure – but the 3.3 per cent drop in 

real private sector wage costs means 

that the real cost of producing one 

unit of output actually went down. 

Long-term, that will be good for jobs. 

Given all of that, it is bizarre in the 

extreme that pay in the public sector 

is still outpacing that in the private 

readjust to a smaller economy. 

Meanwhile the number of 

unemployed people in the UK 

ticked up 0.6 per cent from the 

previous quarter, but was still down 

3.5 per cent on the previous year. 

There was also a decline of 7,300 in 

the claimant count, which 

measures the number of people 

who are in receipt of jobseeker’s 

allowance. 

Older workers and those in parttime 

jobs were the predominant 

driving forces behind the Spring 

rise in joblessness. 

sector, especially given the supposed 

pay freeze. This story has been regularly 

reported in this newspaper, and 

George Osborne finally noticed at the 

Budget, but still not enough has 

changed. Total pay and regular pay in 

the public sector both rose by 1.4 per 

cent. While that is still a much lower 

rate than inflation – and implies a 

real terms wage cut of 1.9 per cent, it 

is not fair that austerity is worse for 

private sector workers than it is for 

those in the public sector. 

There have of course been plenty of 

genuine instances of pay restraint in 

the public sector, but the reality is 

that average rates are still drifting up, 

presumably because large numbers of 

people keep being promoted. This has 

nothing to do with the nationalised 

banks, which actually drag down the 

average. The public sector workforce 

is no longer falling by as much either: 

The youth unemployment rate 

remains at 18.6 per cent, and fulltime 

employment was stable. 

Employment also declined on the 

quarter, bucking the trend of the 

last year, which had seen 700,000 

more people working. 

“These figures confirm the labour 

market is running out of steam,” said 

economist Nida Ali from the Ernst 

and Young Item Club. 

“This picture is more consistent with 

the fragile economic environment 

and will probably continue over the 

coming months.” 

it dropped 117,000 between December 

2011 and December 2012; the number 

of people employed by the private sector 

increased by 708,000. 

Overall, the economy is looking up a 

little, as a series of reports and surveys 

has demonstrated in recent days. 

Yesterday provided further confirmation 

– with the Bank of England hiking 

its growth forecast as part of Sir 

Mervyn King’s last Inflation Report – 

that we are seeing some sort of very 

modest turning point. Polls from 

YouGov and Ipsos Mori show that the 

public is becoming much more optimistic 

about its finances and the 

country’s economy. 

But the fact that this is coinciding 

with collapsing real take-home pay is 

truly extraordinary. 

allister.heath@cityam.com 

Follow me on Twitter: @allisterheath 

Gold slides 

below $1,400 


GOLD fell below $1,400 an ounce 

yesterday as investors desert 

bullion in the face of record-high 

stock markets and growing 

economic confidence. 

The price of the metal closed 

down two per cent at $1,396.20, as 

US data suggested consumer prices 

are set to stay relatively flat 

undermining its safe-haven appeal. 

In October gold hit a peak of 

$1,794 an ounce before entering a 

period of decline. It eventually 

crashed in April. 

City vacancies 

stuck in slump 

BY MICHAEL BIRD 

OPPORTUNITIES for jobs in financial 

services slipped again in April, with 

22 per cent fewer vacancies than the 

previous year, according to Morgan 

McKinley. 

Though the number of people 

seeking new jobs in finance last 

month also fell from the 2012 level, 

a smaller decline of five per cent 

left more candidates fighting for 

each new position. 

The research also found that 36 

per cent of City employees were not 

happy with their bonus payments 

for 2012-13. 

IRS head resigns amid scandal 

The head of the US Internal Revenue 

Service resigned yesterday as the fallout 

widened from the tax agency’s treatment 

of right-wing political groups continues. 

Abercrombie & Fitch sign deal 

Abercrombie & Fitch yesterday said it had 

agreed to sign on to the Accord on Fire 

and Building Safety in Bangladesh. 

Abercrombie’s oral agreement is 

significant as it is a high-profile US 

retailer joining a wave of mostly European 

companies that have signed on. 

Find your next step at CITYAMCAREERS.com

cityam.com 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

Growth is picking up at last 

Bank estimates of past growth 

ONS data 

Chancellor George Osborne wants more cheap money to boost markets and spur growth 

crisis at last 


sumer price inflation now expected 

to peak at 3.1 per cent this year. 

THE UK economy will pick up strong- However markets are more sceptily 

this year, the Bank of England precal, pricing in inflation of 3.1 per 

dicted yesterday, getting back to cent in the medium term and 3.5 per 

healthy growth into 2014 and 2015. cent in the long term, five to 10 years 

And inflation will not be quite as ahead according to the Bank. 

high as previously, falling back to or Meanwhile the US Federal Reserve 

even below its two per cent target in was given a green light to continue 

2015 or 2016, it forecast. 

its ultra-loose monetary stance, as 

GDP is set to rise by 0.5 per cent in new data pointed to weak growth 

the current quarter, accelerating and low inflationary pressures. 

from the 0.3 per cent expansion in Producer prices across the pond 

the first quarter and well away from recorded their sharpest fall in three 

recession territory. 

years in April, according to one set of 

Such growth is a big improvement figures, while two other surveys 

on last year’s zig-zagging numbers, pointed to a sluggish industrial and 

and appears to mark the start of a manufacturing sector. And in stark 

real recovery at last. 

contrast to the UK’s burgeoning 

But there is still some uncertainty recovery the New York Federal 

in the outlook. 

Reserve’s widely-watched Empire 

“The main downside risk to the sus- State manufacturing survey dropped 

tainability of the recovery continues to a reading of minus 1.43 this month 

to stem from events overseas, espe- from 3.05 in April, disappointing 

cially in the Eurozone,” governor Sir economists who had expected a 

Mervyn King warned. 

The Bank’s inflation forecasts were 

healthy rise. 

revised down a touch, with con- FORUM: Page 20-21 

King says even finance tax’s 

backers secretly oppose charge 


Projection 

2009 2010 2011 2012 2013 2014 2015 2016 

UK recovering 

from financial 

NO CENTRAL bankers believe 

Europe’s planned financial 

transaction tax (FTT) is a good idea, 

Bank of England boss Sir Mervyn 

King said yesterday, and even 

politicians who publicly support 

the charge realise it is damaging. 

In a bold attack on politicians’ 

plans the outgoing governor said 

the charge “is not likely to help” 

stabilise markets as its fans claim. 

Eleven EU nations want to raise 

the levy on trades of securities 

involving parties in the countries 

▲ ▲ 

or securities issued in them. 

But Sir Mervyn believes EU 

leaders have been backed into a 

corner by a popular hatred of 

bankers and are now struggling to 

avoid implementing the tax. 

“I can see why politicians are 

wary of expressing the true 

scepticism that exists even in 

quarters that appear to be behind 

it,” he said yesterday. 

It came as new data from TMF 

Group shows Hungary’s FTT will 

raise 150bn forints (£425m) from 

the tax this year, barely half of the 

amount it hoped to bring in. 


Mark Carney faces 

challenges at Bank 

BY TIM WALLACE when the economy improves. 

THE GOVERNMENT’S Help to Buy 

mortgage guarantee scheme could 

leave the taxpayer with a big bill if 

it becomes permanent, Sir Mervyn 

King warned. 

Stopping it being extended is 

one of several challenges his 

successor Mark Carney will 

inherit, as a huge array of 

market stimulus packages 

will have to be withdrawn 

Mark Carney starts in July 

Sir Mervyn also warned it will be 

difficult to unwind quantitative 

easing as markets become reliant 

on ultra-low interest rates. 

And he said Carney will reveal in 

August whether or not the Bank 

will give an unemployment target 

to achieve before it starts 

tightening policy again. 

“There is a debate to have 

on that – Mark Carney has 

been speaking to monetary 

policy committee members on 

it,” he said. 

NEWS 

114 Tories rebel 

over EU vote 


DAVID Cameron’s assurances over 

an EU referendum have failed to 

placate his party, with 114 

Conservative MPs last night voting 

to regret the absence of a bill in 

the current legislative programme. 

Although the Prime Minister 

had said he was relaxed over how 

his backbenchers chose to vote, 

aides had hoped his pledge to 

introduce legislation would cause 

Eurosceptics to tone down their 

campaign. 

The motion was defeated by 277 

to 130 thanks to Labour and Lib 

Dem opposition – although 13 

Labour MPs backed an EU vote. 

3


4 NEWS cityam.com 

Co-op Bank’s 

woes spread to 

hit group rating 


THE CO-OPERATIVE Group risks being 

damaged by the capital hole at its 

banking arm, credit ratings agency 

Standard and Poor’s said yesterday. 

The agency slapped a negative outlook 

on the group’s double-B plus rating, 

warning of a potential future 

downgrade. 

It came as the Co-op Bank began 

talks with the regulator over who will 

take on the top job after its chief executive 

Barry Tootell quit on Friday. 

Its eventual choice for the position 

must be vetted and interviewed 

by the Bank of 

England’s prudential regulation 

authority before 

taking the role. 

The banking arm has a 

capital hole of around 

£800m, which it hopes to 

fill by selling its life and 

insurance arms, and running 

down bad 

loan portfolios. 

But if the sales 

do not raise 

enough money, 

THE 

LUXURY 

SEAT 

SALE 

Treat yourself 

to fi rst and 

business class 

fl ights and 

holidays. 

Book by 4 June 

at ba.com 

the bank will come up short. 

And analysts fear that, in a stressed 

situation, the capital hole may even 

increase to £1.8bn. The bank can 

shrink its balance sheet or issue bonds 

to raise the capital. 

But it may also end up calling on its 

parent group for the funds. 

“The outlook revision reflects our 

view that the Co-operative banking 

group’s focus on strengthening its capital 

position could impede the group’s 

execution of its overall financial objectives,” 

said the ratings agency. 

“We believe it could increase the execution 

risks surrounding the trading 

group’s deleveraging plans, the realisation 

of which are critical for the 

group to maintain its ratings.” 

Meanwhile the Office of Fair 

Trading decided against referring 

the banking industry to the 

Competition Commission, as new 

entrants have come into the current 

account market since its last 

review in 2008. 

Co-op Bank chief Barry 

Tootell quit on Friday 

Cameron raises prospect of 

selling RBS to public by 2015 


DAVID Cameron yesterday hinted 

that the government could sell off 

Royal Bank of Scotland to members 

of the public before the 2015 general 

election. 

Speaking on a trip to the US, 

Cameron told reporters that he is 

interested in “involving people in 

owning this bank in a genuine way”, 

before insisting “I’m open to all ideas 

and proposals”. 

He also said he wanted the sell-off 

to begin “as soon as possible”, with 

the proviso that the bank should be 

BY CITY A.M. REPORTER 

FASHION media and analysts 

yesterday broadly welcomed Marks 

& Spencer’s new clothing strategy 

and a preview of autumn/winter 

fashion ranges, giving the firm’s 

boss some respite from pressure 

over falling sales. 

Britain’s biggest clothing retailer 

said on Tuesday it would focus on 

better quality and styles in 

womenswear, deliver more 

compelling and clearer sub-brands, 

and make shopping easier in 

stores, as it tries to reverse nearly 

two years of declining sales. 

Yesterday, shares in the 129-year- 

in good financial health. RBS itself 

has suggested it may need another 

18 months to achieve this target. 

The Treasury is thought to be 

considering ways of handing part of 

the government’s 81 per cent stake 

in the bank to millions of people in 

one of the biggest ever privatisations. 

RBS shares are valued at 407p on 

the Treasury’s accounts but 

yesterday closed at 307p. With little 

chance of the government making a 

profit in the short-term, handing 

shares to members of the public 

would avoid allegations of selling 

stock to institutions on the cheap. 

M&S soars to five-year high as 

City welcomes new collection 

old firm, up 20 per cent over the 

past year after periodic bouts of 

bid speculation, rose by four per 

cent, hitting a five-year high of 

438p. 

“The changes outlined contained 

a variety of enhancements based 

on detailed customer feedback that 

even the bears will find hard to 

completely ignore,” said analysts at 

N+1 Singer, arguing that investors 

should not underestimate the 

potential from the changes. 

M&S will present the ranges to 

the bulk of the fashion media 

today but some key fashion editors 

have already viewed the ranges and 

like them. 

HSBC to cut 

14,000 jobs 

across world 


HSBC plans to cut another 14,000 

jobs over the next two years as it 

battles to bring down costs and offer 

sustainable returns to shareholders, 

the bank’s bosses told investors 

yesterday. 

As the bank returns to steady 

profitability, it plans to return cash 

to shareholders through higher 

dividends and stock buybacks. 

Headcount has already fallen from 

300,000 when chief executive Stuart 

Gulliver took over two years ago to 

254,000 now, and is set to fall as low 

as 240,000 in two more years. 

It is part of a wider plan to cut 

costs – the bank has cut $4bn 

(£2.6bn) per year off its bills already, 

in large part by closing or selling 

more than 50 businesses. 

But it is fighting an uphill battle 

against the new tide of regulation, 

hiring another 900 risk 

and compliance staff 

in the first quarter, 

and potentially 

hiring thousands 

more in the 

coming years. 

HSBC’s shares 

rose 0.79 per cent. 

Stuart 

Gulliver is 

leading the 

reforms 

Fly First and you’ll have 

a private concierge 

at your beck and call. 

To Fly. To Serve. 

Limited availability, particularly during peak periods. Includes selected destinations from LHR, LGW and LCY. Bookings to all destinations must be made by midnight on 04/06/13. Bookings to Europe from LHR and LGW are for travel between 01/06/13 – 15/12/13. Bookings to the Caribbean, Las Vegas, Orlando 

and Tampa from LGW are for travel between 29/05/13 – 30/04/14. Bookings to Mauritius and Colombo (Sri Lanka) are for travel between 29/05/13 – 31/10/13. Bookings to all other destinations are for travel between 29/06/13 – 07/09/13, 26/10/13 – 03/11/13 and 21/12/13 – 05/01/14. Some destinations 

require bookings to be made a minimum of 28 days before the date of outbound departure. Holidays are ATOL protected (number ATOL5985). Fully fl at beds are operated in our Club World and First cabins. For selected destinations, eligible travel dates and full terms and conditions visit ba.com/luxury-sale

cityam.com 

WATER REGULATOR BOSS TO STEP DOWN 

THE CHIEF executive of UK water regulator Ofwat has resigned after six years in the 

post. Regina Finn will step down in November. A search for her successor is underway. 

“Regina wishes to take her career forward in a different direction,” Ofwat chairman 

Jonson Cox said yesterday. 

Boris confident 

of taking over 

London’s taxes 


AND JAMES TITCOMB 

BORIS Johnson yesterday insisted he 

could convince the Treasury to 

devolve control of key taxes to City 

Hall by 2016, as part of an ambitious 

bid to give Londoners more control 

over how their money is spent. 

The Mayor of London wants his 

office to be granted more power over 

infrastructure and education 

provision in the capital, with 

funding coming from the 

council tax, business rates 

and stamp duty paid by 

Londoners. 

The capital’s central government 

grant would 

be reduced by an 

equivalent 

amount but 

City Hall 

would gain 

control over 

rates. 

“We are 

engaged in 

endless hand- 

to-mouth negotiations with government 

about penny packets of finance. 

And we have no real certainty about 

the financing of very important projects 

beyond 2015,” Johnson said yesterday. 

He said London was “fiscally infantilised” 

compared to the funding available 

to other major world cities such 

as New York or Madrid. 

“There is a bunker mentality in 

London government in dealing with 

the Treasury and a nervousness about 

upsetting government and seeming 

too ambitious.” 

“But this will be revenue neutral... 

It will give us consistency in funding 

and it will give us democratic 

accountability.” 

Johnson insisted it was possible 

to reach agreement 

on the plans by the time 

his mayoral term ends in 

three years’ time. 

Britain pledges to clamp down 

on oil firms amid price fix claim 

SUZIE NEUWIRTH 

BRITAIN’S energy minister 

yesterday said that oil companies 

would face full retribution if they 

have manipulated prices, as the 

European Commission’s probe 

throws the industry’s practices into 

the spotlight. 

“If it turns out to be the case that 

hard-pressed motorists and 

consumers have been hit in the 

pocket by manipulation in the 

market, the full force of the law 

should be down upon them,” said 

Energy Secretary Ed Davey. 

▲ ▲ 

THE DEBATE: Page 21 

Johnson wants the power 

to set council tax bands 

Oil giants BP, Shell, Statoil and 

ENI have all confirmed that they 

are under investigation by the EU 

antitrust regulator. 

The probe into oil prices has 

been likened to the Libor scandal, 

when banks were found to have 

manipulated interbank lending 

rates. 

Last year the Office of Fair 

Trading found no evidence of 

price fixing in the oil market, but 

yesterday campaigning Tory MP 

Robert Halfon said the OFT’s 

probe had been “limp-wristed and 

lettuce-like”. 


Google beats Apple 

to music streaming 

BY CITY A.M. REPORTER pioneered online music purchases 

GOOGLE launched a music service 

yesterday that allows users to listen 

to unlimited songs for $9.99 (£6.50) 

a month, challenging smaller 

companies like Pandora and 

Spotify in the market for streaming 

music. 

With its new service, 

announced at its annual 

developers’ conference in San 

Francisco, Google has adopted the 

streaming music business model 

ahead of rival Apple, which 

IN ASSOCIATION WITH 

with iTunes. 

Google’s “All Access” service lets 

users customise song selections 

from 22 genres, ranging from jazz 

to indie music, stream individual 

playlists, or listen to a curated, 

radio-like stream that can be 

tweaked. It will be launched for US 

users first, before being rolled out 

to several other countries. 

Google shares leapt to a new alltime 

high topping $900 for the 

first time. They closed up 3.25 per 

cent at $915.89. 

NEWS 

RP Martin boss 

on Libor leave 


TWO top executives at interdealer 

broker RP Martin are understood to 

have been suspended amid an 

investigation into the company’s 

alleged involvement in the Libor 

fixing scandal. 

The pair, thought to be chief 

executive David Caplin and fellow 

director Alan Farnan, have been 

placed on leave as the probe 

continues. 

At the end of last year two RP 

Martin employees were arrested as 

part of the police investigation into 

the manipulation of the key 

interbank lending rate. 

RP Martin declined to comment. 

FINE CHINA 

Thursday 30 th May 6.30pm – 9pm 

Ne Hao! Join us for an authentic Chinese cultural 

experience at our award winning store on Cheapside. 

Our experts know the country intimately and will be on 

hand to discuss the ins and outs of your next holiday. 

A Chinese musical duo will create a fantastic oriental 

atmosphere, traditional Chinese food and drink will 

be available throughout the night, and there will be the 

chance to win a free luxury holiday to China. 

We have 100 complimentary tickets 

up for grabs. To apply, please visit 

abercrombiekent.co.uk/events 

5

cityam.com 

ITV ad sales set 

for steep fall in 

second quarter 

BY JAMES TITCOMB 

ITV has revealed improving sales in 

the first three months of the year, 

but said that advertising revenues in 

the second will be significantly lower 

than in 2012. 

The broadcaster said yesterday that 

TV advertising sales in the first quarter 

had been impressively robust, up 

six per cent on the same period last 

year. However, it warned that the current 

trading period will be much 

leaner than last year, when sales 

were boosted by the Euro 2012 football 

tournament. 

ITV forecast that advertising revenues 

will be down 12 per cent yearon-year 

in April, down seven per cent 

in May and down by up to 15 per cent 

in June. However, it promised an 

improvement in the second half of 

the year, predicting growth in July. 

The broadcaster has been buffeted 

by a volatile advertising market in 

recent years, causing chief executive 

Adam Crozier to focus his efforts on 

other sources of revenue. 

Crozier has been buying up TV production 

companies to bolster the ITV 

Studios arm, with the latest acquisition 

being Monday’s £17m purchase 

of a majority stake in Cake Boss 

maker High Noon. 

ITV Studios saw revenues decline by 

five per cent, although Crozier said 

this was against a tough comparative 

period and that he is confident the 

division will see double digit growth 

in the year as a whole. 

“While we are cautious about the 

outlook for TV advertising for 2013, 

our objective remains to outperform 

the market over the full year,” Crozier 

said. Overall, ITV saw first-quarter revenues 

of £666m, up two per cent on a 

year previously. 

ITV PLC 

133 p 

132 

131 

130 

129 

128 

127 

126 

129.20 

15 May 

9 May 10 May 11 May 14 May 15 May 


ITV’s success in recent years has been fuelled by hit shows such as Downton Abbey 

ANALYST VIEWS 

Interviews by James Titcomb 

PATRICK YAU PEEL HUNT 

“ 

ALEX DEGROOTE PANMURE GORDON 

“ 

The firm appears to be performing in line with its transformation plan, 

and we expect ITV’s full-year broadcasting revenues to be flat, outperforming 

the general market. However, we will review margin assumptions and 

see shares as fully valued. We have a 130p target and ‘Hold’ guidance. 

DID ITV’S ADVERTISING 

WARNINGS AFFECT YOUR 

VIEW OF THE STOCK? 

” 

The stock market should not be surprised by this top-line performance, 

which had been well trailed. Even after a strong share rally, we consider this 

undemanding particularly taking into account the significant M&A taking 

” 

place across global broadcasting. We are buyers with a 180p target. 

IAN WHITTAKER LIBERUM CAPITAL 

“ 

First quarter advertising revenues were ahead of expectations but second 

quarter guidance looks weaker than expecting. However, we remain happy 

with our ‘Buy’ guidance and 155p target, and there is enough earnings 

” 

growth from other non-TV advertising sources to see upgrades. 

NEWS 

Centaur chief 

exec quits after 

profit warning 


BUSINESS publishing group Centaur 

Media lost more than a quarter of its 

market value, as well as its chief 

executive, yesterday after a shock 

profit warning. 

Geoff Wilmot said he would step 

down from the publisher of The 

Lawyer and Marketing Week after 

six and a half years, after Centaur 

revealed that profit growth in the 

year to July would be “modest”. 

Analysts had expected the 

company to improve significantly 

on the £8m it made in the previous 

12-month period, and the 

disappointment sent Centaur’s 

shares down by 27.7 per cent. 

Wilmot will be replaced on an 

interim basis by chief financial 

officer Mark Kerswell, who was 

formerly chief operating officer of 

FTSE 100 media group Informa. 

Geoff Wilmot joined in November 2006 

7

cityam.com 

Lonrho shares 

surge 90pc on 

takeover offer 

BY SUZIE NEUWIRTH FS Africa had net debt totalling 

AFRICAN conglomerate Lonrho’s 

share price soared 90 per cent yesterday 

after the 104-year-old firm’s board 

recommended a £175m takeover bid 

from a Swiss consortium. 

FS Africa, which is jointly owned by 

Swiss investor Rainer-Marc Frey and 

billionaire Thomas Schmidheiny, 

offered 10.25p per share for the struggling 

oil and gas logistics provider. 

“The company had laudable objectives 

to capitalise on the growth of 

Africa, but repeatedly over promised 

and under delivered,” Damian 

McNeela, analyst at Panmure Gordon, 

told City A.M. 

“In the context of the company’s 

overstretched balance sheet and 

under-delivering on promises, I think 

they have been offered a fair price.” 

EVERY little helps.” Tesco’s 

ubiquitous advertising 

slogan would serve as an 

equally useful mandate 

from banking regulators as they 

seek to augment the capital and 

liquidity bases of the UK’s big 

lenders. 

Negotiations between the 

industry and the Prudential 

Regulation Authority have taken 

weeks longer than expected, but 

it has already become clear from 

events at the Co-operative Bank 

that “too big to fail” lenders are 

only one part of the problem. 

A capital hole of potentially 

more than £1.5bn at the Co-op 

highlights the fact that the 

regulatory underlap which 

blighted British banking before 

the crisis has far from 

disappeared. 

Efforts by the Prudential 

Regulatory Authority to 

orchestrate the appointment of 

the Co-op arm’s new chief 

executive is evocative of stable 

doors and horses. Nor is the Coop 

the only one of the 

newcomer banks that regulators 

have had cause to monitor. 

I understand that for 

approximately three months 

last year, Tesco’s banking arm 

was on the official watchlist of 

the Financial Services 

Authority owing to 

concerns about the 

adequacy of its IT 

systems. 

The retailer’s 

operation now has a 

clean bill of health, 

but its seriallydelayed 

plans to dive 

into the current account 

market remain 

patchilyformed. 

This was 

not the vision 

hailed by 

£99m at the end of the first quarter. 

“We believe Lonrho has strong longterm 

prospects, but the significant 

capital required to grow the business 

over time is evident,” said 

Schmidheiny. 

Lonrho’s shares closed 4.7p, or 90.4 

per cent higher, at 9.9p yesterday. 

Lonrho PLC 

10 p 

9 

8 

7 

6 

5 

INSIDE 

TRACK 

MARK KLEINMAN 

9.90 

15 May 


George Osborne as he set out 

plans for a wave of upstart 

challengers taking on the 

entrenched oligopoly of the 

existing players. After all, 

regulators were not supposed to 

be the ones facing the challenge 

from their emergence. 

SWANN SIZING UP BUYOUT JOB 

The most unlikely business story 

I’ve seen since my last column a 

fortnight ago? A Sunday 

newspaper’s breathless 

suggestion that Kate Swann, the 

soon-to-depart chief executive of 

WH Smith, had sounded out 

Roger Holmes about the 

idiosyncrasies of running Marks 

& Spencer (M&S). 

Swann is an unlikely, though 

not an impossible, candidate to 

run Britain’s biggest clothing 

retailer. 

But even if she was in the 

frame to succeed Marc Bolland, I 

doubt she’d be seeking advice 

from a predecessor who left 

the chain nine years ago, 

and who was in the lame 

duck bracket long 

before Sir Philip Green 

turned up waving his 

chequebook. 

More plausible is the 

idea that Swann might be 

invited to join Change 

Capital, the private 

Kate Swann is 

weighing up her post- 

WH Smith options 


PROFILE: TINY ROWLAND 

ROLAND ‘Tiny’ Rowland, who died in 1998, 

was the man who transformed the firm 

from a tiny mining firm in Africa to what 

was at its peak a huge international 

conglomerate. 

Recruited as chief executive of what was 

then the London and Rhodesian Mining and 

Land Company in 1962, Rowland led an 

aggressive expansion of the firm outside its 

mining comfort zone and refashioned 

the declining firm as a conglomerate 

running more than 600 global 

businesses including newspapers, 

hotels and textiles. His autocratic 

management style saw directors 

challenge his position in 

1973, and though he 

survived the coup, then 

Prime Minister Edward 

Heath labelled him “an 

unpleasant and 

ADVISERS LONRHO 

DAVID ANDERSON 

INVESTEC BANK 

Investec Bank advised FS Africa on its lifeline 

bid for struggling African conglomerate 

Lonrho. The team was led by David 

Anderson and Garry Levin, who both previously 

worked at KBC Peel Hunt. Law firm 

Slaughter and May also advised FS Africa, 

Challenger bank proves to be 

a challenge for the regulators 

equity vehicle that was founded 

by Holmes and his erstwhile M&S 

chairman, Luc Vandevelde. 

Plausible, but untrue, 

apparently. 

What I do understand to be 

the case is that Swann has been 

approached by buyout firms 

including Advent International, 

owner of the DFS furniture 

chain, about becoming an 

operating partner. 

The discussions are tentative, 

and given Swann’s youth, the 

odds must be on her instead 

taking a full-time executive’s 

role. There’s unlikely to be a 

shortage of interest – although 

given the dearth of big-time 

vacancies in the retail sector, she 

may be called upon to deploy her 

cost-cutting discipline elsewhere. 

SIR MERV’S TRANSATLANTIC SWERVE 

With Wimbledon’s conclusion 

and two Ashes series to look 

forward to, sport-loving Sir 

Mervyn King could hardly have 

hand-picked a more propitious 

time than the last day of June to 

end his second term as governor 

of the Bank of England. 

Sir Mervyn won’t, though, be 

spending his entire post- 

Threadneedle Street summer in 

the posh seats in SW19 and at 

Lord’s. 

Friends say he intends to 

relocate to New York for some 

time as he deliberates over the 

options for the next phase of his 

career. 

He might bump into Bob 

Diamond, although going into 

business with the former 

Barclays chief executive – whose 

ousting he ordered last year – is 

not thought to be high on the 

governor’s agenda. 

Mark Kleinman is the City editor 

of Sky News @MarkKleinmanSky 

unacceptable face of capitalism”. 

In 1981 he was handed control of the 

Observer newspaper, but blocked from 

bidding for Harrods. The decision incensed 

him so much he used his publishing 

platform to pursue a lengthy vendetta 

against Harrods and its new owner, 

Mohammed Al-Fayed, eventually forcing 

the DTI into publishing an internal report 

that questioned the Egyptian tycoon’s 

source of wealth. Eventually ousted from 

Lonrho by a second boardroom coup in 

1993, Tiny died five years later aged 80. 

Even before Lonrho, Rowland led an 

adventurous life. Born in an Indian 

detention camp during WW1, 

Rowland’s early years saw him 

join the Hilter Youth, work as 

a shipping agent, and spend 

eight weeks in a Berlin jail 

for anti-Nazi sentiment. 

led by corporate and M&A partner Mark 

Zerdin who previously worked on deals 

such as Liverpool FC’s sale to New England 

Sports Ventures and General Electric’s offer 

to buy Wellstream Holdings. Meanwhile 

Jefferies advised Lonrho, led by MD Sara 

Hale, Senior VP Harry Nicholas, MD Andrew 

Bell, VP Vaneet Malhotra and MD Michael 

Collinson. Hale and Nicholas previously 

worked at RBS Hoare Govett, while Bell 

came from HSBC. Headland Consultancy 

and FTI Consulting were PR advisers to FS 

Africa and Lonrho respectively. 

 

 

 

NEWS 

Investors still 

expect Severn 

Trent deal 

BY SUZIE NEUWIRTH 

SEVERN Trent’s share price 

remained relatively unchanged 

yesterday, despite the water 

supplier’s refusal of a takeover bid 

from a consortium of investors on 

the grounds that it undervalues the 

company. 

“The market is still confident that 

the deal will happen,” Chris 

Beauchamp, analyst at IG Group, 

told City A.M. “Previous water 

company takeovers were successful 

and utilities continue to be very 

attractive assets.” 

The FTSE 100 company’s shares 

rose a modest 13p yesterday. 

Severn Trent PLC 

2,200 p 

2,150 

2,100 

2,050 

2,000 

1,950 

1,900 

1,850 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,090.00 

15 May 

 

 

 

 

 

 

 

9

cityam.com 

LSE boss Xavier Rolet has helped the exchange dodge poor volumes and deliver a profit 

London Stock 

Exchange spies 

money in data 

BY JAMES WATERSON undertaken to become more efficient 

LONDON Stock Exchange Group now 

makes more money from data services 

than from its core capital markets 

business, according to year-end 

results released yesterday. 

Revenue from the group’s information 

business grew 40 per cent to 

£306.3m over the twelve months to 

the end of March, driven by the 

acquisition of the FTSE business 

which calculates indices for 

exchanges around the world. 

By contrast income from the capital 

markets division – which includes 

the iconic London Stock Exchange 

itself – fell by a tenth to £267.5m. 

The company’s decision to diversify 

away from equity markets, which 

have been hit by falling trade volumes 

following the financial crisis, 

appears to have paid off, with total 

revenues rising seven per cent to 

£726.4m. 

Profits fell three per cent but chief 

executive Xavier Rolet said he was 

pleased with the “initiatives we have 

and diversify our business”. 

Earlier this month the LSE acquired 

London clearing house LCH.Clearnet 

in an attempt to increase revenues 

from post-trade services. 

The company, which joined the 

FTSE 100 this year, saw its share price 

jump as analysts rushed to praise the 

turnaround plan 

“We believe the company is being 

exceptionally run especially given the 

challenging market backdrop,” said 

analyst Peter Lenardos of RBC Capital 

Markets. 

1,400 

1,380 

1,360 

1,340 

London Stock Exchange Group PLC 

1,440 p 1,406.00 

15 May 

1,420 


Debt drought forces caution in 

private equity dealmaking 

BY MICHAEL BOW 

A LOAN drought has crushed the 

number of private equity deals 

signed this year, sending deal 

values in the sector to a three-year 

low, figures showed yesterday. 

Lower levels of debt financing 

mean private equity firms are 

unwilling, or unable, to stump up 

the money to back deals, leaving 

them trailing behind their private 

company counterparts. 

This has sent total values paid in 

private equity-related deals down 

36 per cent in the past year, to its 

lowest level since the winter of 

2009. 

The drought contrasts with 

private businesses, who are willing 

to pay about five per cent more for 

companies than they were a year 

ago, the data from accountant 

BDO show. 

Yesterday’s figures tie-in with 

further numbers from Preqin, 

which shows the average holding 

period for a private equity-backed 

company in Europe is 5.2 years, 

compared to 3.8 years in 2008. 

Economic conditions are to 

blame, the group said. 


BOTTOM 

LINE ELIZABETH FOURNIER 

No matter mattter 

where 

we stand 

you stand sta 

and secur secured secured 

ed d 

NEWS 

Rolet’s eye for an opportunity is 

paying off in a difficult market 

BRAVO Xavier. It’s been a 

bumpy ride for the London 

Stock Exchange chief 

executive since he took up the 

post exactly four years ago, with 

largely moribund equity markets 

and a non-existent IPO pipeline 

piling pressure on the exchange, but 

his strategies seem to be paying off. 

Yesterday investors cheered the 

news that full-year revenues were up 

seven per cent to £726.4m, while net 

debt had fallen from £703m a year 

ago to £549.9m over the last 12 

months – sending shares up almost 

six per cent and adding to the 23 per 

cent rise they’ve already seen since 

the start of the year. 

In a sector rife with consolidation, 

LSE has remained on the sidelines 

since its failed merger with the 

Toronto Metals Exchange (TMX) at 

the start of 2011. Instead, Rolet has 

ActivTrades ActivT rades is proud to 

o offer the security and peace o of mind of insuring its clients clients’ f funds 

above the threshold pr provided ovided by the Financial Services Servicces 

Compensation Scheme (FSCS). 

ActivTrades 

is the 

first 

UK broker 

- authorised to hol hold d client funds - to offer 

this co cover. over. 

This policy 

is underwri underwritten tten by Lloyd’s of London and andd 

comes as standard, 

at no cost co ost to 

you. Clients of ActivT ActivTrades raades 

are individually covered up uup 

to 

£50 £500,000 0,000 

as 

Excess 

of FSCS 

Insurance 

Insurance. . Because you your ur funds security is our main goal, g we can increase the maximum maxi imum 

amount covered accord according ding to your needs (terms and d conditions apply). 

For 

more information pplease 

please visit 

activtrades.co.uk 

oor 

or call us at 

020 7680 

7300. 

Forex Fo orex 

| Spread Betting | CFDs CCFDs 

Leveraged 

products are high 

risk, losses can exceed your 

initia initial al deposit. 

The ActivTrades ActivTr rades Excess of FSCS FSSCS 

Insurance is subject to the TTerms 

Terms 

and Conditions of the policy polic cy wording. 

Protection under this policy is afforded to retail clients who 

are eligible to claim under FSCS FSCS. S. Fur Further ther 

information 

can be found on our o website www.activtr 

www.activtrades.com. ades.com. ActivT ActivTrades rades PL PLC C is authorised and 

d regulated 

by the Financial Services Authority, Auth hority, FSA registration number 

4434413. 

434413. 

11 

focused on seeking out assets that 

diversify income streams away from 

traditional equity markets – a 

majority stake in LCH.Clearnet, a 

fixed-income joint venture with 

TMX, and a very successful clearing 

business in Italy, CC&G. 

With competition concerns high 

among regulators, he’s right to think 

small and branch out further afield, 

focusing on key overseas markets 

and the growing over-the counter 

market. At the moment it’s early 

days, but when the synergies really 

start rolling in, investors should have 

even more reasons to be cheerful.


12 NEWS cityam.com 

Sales dip fails to stop Alliance 

Boots posting healthy profits 

BY JULIAN HARRIS 

ALLIANCE Boots, owner of the 

high street Boots stores, yesterday 

boasted a second straight year of 

double-digit growth in underlying 

profits, despite falling sales. 

The firm, which has been 45 

per cent owned by US retail giant 

Walgreen since last August, said 

that revenue for the year to 31 

March was down 2.6 per cent at 

£22.4bn, citing “challenging 

market conditions prevalent 

across the world.” 

Yet underlying profit after tax 

climbed to £805m, up 12.7 per 

cent on a year earlier. The Boots 

retail wing, known as the firm’s 

health and beauty division, saw 

trading profits rise 6.8 per cent to 

£865m, despite sales dropping 2.5 

per cent to £7.48bn. 

While austerity measures and 

global economic slowdown may 

hit the firm by squeezing 

consumer demand, belttightening 

could actually benefit 

Alliance Boots, its report said. 

“Demographic and social 

pressures [are] continuing to drive 

demand for healthcare and 

medicines while payers continue 

to attempt to constrain overall 

costs,” it said. “These trends 

continue to drive demand for 

generic medicines and for high 

quality services delivered to local 

communities, both of which we 

are ideally placed to meet.” 

However, the company admitted 

that the contraction in its market 

“reflects government measures 

across Europe to constrain growth 

in healthcare costs”. 

Alliance Boot’s pharmaceutical 

wholesale branch brought in 

£16.4bn during 2012-13. 

RSA SLASHES PAY TO HEAD OFF REBELLION 

INSURER RSA’s 28 per cent cut in directors’ pay yesterday secured backing from 

shareholders angered by a sharp reduction in the company’s dividend. RSA’s pay plans won 

91 per cent approval at its annual shareholder meeting. Chairman Martin Scicluna, pictured, 

said total director remuneration was lower in 2012 compared with the previous year. 

French Connection cheers steady 

trading at the start of the year 

BY SUZIE NEUWIRTH grow as the year progresses,” the 

BRITISH clothes retailer French 

Connection yesterday said like-forlike 

trading in the UK and Europe 

was broadly flat in the 15 weeks to 

11 May. 

Wholesale revenues declined in 

the UK and Europe, while in North 

America wholesale was down but 

retail revenues climbed five per 

cent, the firm said in an update 

ahead of its shareholder meeting. 

Joint ventures in Asia performed 

well despite the retail market slowdown 

in China and Hong Kong, 

resulting in a small profit increase. 

“We are seeing progress from the 

initiatives that were instigated 

following the retail review last year 

and expect the impact of these to 

EasyJet soars as 

its winter losses 

are sliced in half 


EASYJET has almost halved its losses over 

the six months to April, helped by dreary 

weather in Britain sending holidaymakers 

on winter breaks abroad. 

The firm’s pre-tax loss of £61m was 

slightly ahead of forecasts in a traditionally 

quiet period for airlines. 

Revenues rose 9.3 per cent to £1.6bn, 

while revenues per seat rose 5.8 per cent 

to £53.39. 

Chief executive Carolyn McCall told 

reporters the low-cost carrier has the 

chance to take more market share from 

more established airlines in the coming 

years. 

“What we have seen is the legacy carriers 

can’t make money in their current 

set up on short haul in Europe,” she said. 

“It’s a few years away, there’s a lot of 

restructuring and consolidation to come 

but the potential for a low cost carrier 

like EasyJet is significant.” 

The firm had around a 30 per cent 

share on the routes it operated in the 

half-year period, McCall said, up from 28 

per cent. 

EasyJet said it is in the final stages of 

sizing up a possible plane order after 

company said. 

Group cash rose to £15.7m, from 

£10.4m a year ago, which the firm 

hailed as a sign of tight capital 

control. 

Analysts said the update showed 

signs of a strong start to the year. 

“French Connection remains a 

strong global brand and, with a 

new focus on change and a series 

of sensible initiatives being 

implemented in the UK, we see 

scope for losses to narrow,” said 

Numis in a note. 

But stock-watchers at Cantor 

Fitzerald said they do not expect 

the firm to break even until 2015. 

Shares in the FTSE-listed retailer 

closed 3.1 per cent higher 

yesterday at 28.20p. 

2017, a move that major shareholder 

Stelios Haji-Ioannou has opposed. 

McCall said if the firm decides to 

upgrade its planes, it will take the 

economic case to shareholders and 

ensure a deal “will be in the best 

interests of all of them”. 

As part of EasyJet’s plan to appeal to 

business passengers, it announced 

yesterday that its flexible fares will 

include fast-track passes through airport 

security. 

For the rest of the year, EasyJet said 

it expects to improve returns and 

profitability. The upbeat outlook 

helped send the FTSE 100 firm’s 

shares up 8.32 per cent yesterday. 

easyJet PLC 

1,240 p 1,224.00 

15 May 

1,220 

1,200 

1,180 


1,140 

9 May 10 May 11 May 14 May 15 May

cityam.com 

Millions to switch to BT internet 

for free Premier League football 

BY JAMES TITCOMB offering for free to its own internet 

MILLIONS of broadband subscribers 

are set to drop their current 

provider to switch to BT, having 

been tempted by the carrot of free 

Premier League football on TV. 

Initial figures from Usurv, an 

internet pollster, said that eight per 

cent of Sky’s TV customers – 

around 832,00 households – plan to 

switch from their current provider 

to BT. The research also said that 

six per cent of TalkTalk and Virgin 

Media broadband customers – 

roughly 500,000 people – intend to 

switch in order to take advantage 

of the sports channels BT is 

Europeans shun 

PCs as sales see 

worst ever fall 


PERSONAL computer sales have 

plummeted in Western Europe, as 

Microsoft’s Windows 8 software has 

failed to capture customers’ imaginations 

and shoppers have turned to 

tablets such as Apple’s iPad. 

Data from technology researchers 

Gartner showed that PC sales in the 

first quarter of 2013 were 12.3m – 

20.5 per cent down on a year earlier. 

The decline was far more pronounced 

than that for worldwide 

sales, which were down 11.2 per cent 

in the same period, according to 

Gartner. In the UK, sales fell 16 per 

cent to 2.5m, with laptops falling 

much faster than desktops. 

“Many consumers no longer 

require a PC as usage of smartphones 

and tablets takes over,” Gartner’s 

Ranjit Atwal said. He said that laptop 

sales were down 22 per cent in the 

UK, while desktops fell 5.2 per cent, 

and that the decline was much more 

pronounced in the consumer space 

than for business purchases. 

subscribers. 

Although the figures are unlikely 

to give a completely accurate 

reflection of the market, and there 

is some overlap between the two 

sets of customers, they still suggest 

that more than 1m people already 

intend to switch from rival 

operators. BT announced a week ago 

that it would hand those who sign 

up to its broadband packages freeof-charge 

access to its three new 

sports channels, which include the 

rights to 38 Premier League games a 

season, as well as Premiership rugby 

and foreign football leagues. 

The move is the biggest shake up 

Although the UK market declined 

significantly, it was reasonably robust 

next to France, where PC sales fell by 

more than 25 per cent. Computer 

manufacturers such as Dell and HP 

have been counting on the success of 

Microsoft’s new Windows 8 software 

to drive better sales, but yesterday’s 

figures suggested that the effect had 

been muted. Windows 8 has introduced 

a new interface designed for 

tablets and touchscreen computers, 

but the software has been criticised 

as being un-intuitive and too much of 

a break from previous versions. 

“Wide availability of Windows 8based 

PCs could not boost consumer 

PC purchases during the quarter,” 

Meike Escherich, an analyst from 

Gartner said. “Although the new user 

interface suits new form factors, 

users wonder about its suitability for 

traditional PCs — non-touchscreen 

desktops and notebooks.” 

Hewlett-Packard and Acer – the two 

top sellers in Western Europe – were 

the biggest losers, falling 31.7 per 

cent and 36.8 per cent respectively. 

Amazon attacked for paying a 

corporation tax bill of £3.1m 

BY JAMES TITCOMB Politicians criticised the figures 

AMAZON paid £3.1m in UK 

corporation tax last year and 

deferred payment of a further 

£2.2m, accounts revealed 

yesterday. Its bill for 2012 alone 

was £2.4m, on sales of $6.5bn 

(£4.3bn) in the country. 

The US giant’s UK subsidiary, 

Amazon.co.uk Limited, posted 

annual turnover of £320m, leading 

to a £10.9m pre-tax profit and 

taxes of £2.44m. Common Market 

rules allow most of Amazon’s 

European sales to be run through 

its affiliate in Luxembourg, where 

it pays a much lower tax rate. 

in an effort to stoke public anger 

ahead of Google appearing in 

front of the Public Accounts 

Committee this morning. The 

search engine has also been 

attacked for its UK tax payments 

and faced new accusations 

regarding where its sales are based 

earlier this month. 

The UK is Amazon’s third largest 

market, and brought in sales of 

$6.5bn in 2012, according to the 

company’s annual report, a 21 per 

cent increase on 2011. 

Amazon did not comment 

yesterday but has said that it obeys 

all UK tax laws. 


of sports TV in more than 20 years, 

and is an aggressive bid from BT to 

shore up its broadband base, which 

has been threatened by Sky’s entry 

into the market. 

More worryingly for Sky, Usurv’s 

research said that six per cent of 

Sky TV customers are considering 

cancelling their TV contract, the 

company’s most lucrative business. 

Analysts appeared to disagree 

with the suggestion that Sky’s TV 

base will suffer, however. Claire 

Enders of media researchers Enders 

Analysis said: “The BT Sport product 

is not strong enough to cause any 

but the slightest erosion of Sky 

Sports residential customers.” 

To have never used the internet 

60.0 % 

50.0 

40.0 

30.0 

20.0 

10.0 

16-24 25-34 35-44 45-54 55-64 65-74 75+ 

Ageas UK sees 

profits increase 


THE COMPANY that operates an 

insurance joint-venture with Tesco 

yesterday unveiled a healthy rise in 

profits for the first three months of 

the year. 

Ageas UK, a subsidiary of the 

Belgian group, said profits rose 38 

per cent to £19.4m. 

But new business volumes 

declined slightly year-on-year to 

£511.3m, despite acquiring the 

Groupama UK business during the 

intervening period. Ageas UK said 

this was due to tough competition 

on premiums, particularly in the 

motor insurance market. 

NEWS 

Blockbusters help 

Cineworld takings 


CINEWORLD has 

boosted revenues 

since the start of 

the year by raising 

ticket prices to 

offset falling 

admissions. 

The firm, which is 

poised to enter the 

FTSE 250 in next month’s 

reshuffle, said the average 

ticket price has risen 3.9 

per cent since 28 December, 

helping boost box office 

revenues 11.4 per cent 

despite admissions 

Those who have never used the internet are disproportionately older and less well-off 

Internet use is on the rise but 

7m have still never gone online 


MORE than 7m adults have never 

used the internet, figures from the 

Office For National Statistics (ONS) 

revealed yesterday. 

Although the number of adults 

who use the internet regularly is 

increasing, 7.1m have never logged 

on. Those who do not receive the 

benefits of being online are 

disproportionately older and less 

well-off, the data said. 

And 3.1m over-75s – or 65.5 per 

cent of that age group – do not go 

online. This is compared to 33.4 

per cent of those aged between 65 

and 74, and 15 per cent of 55-64 

year-olds. Of those in employment 

to have never used the internet, 60 

per cent earn less than £299 a 

week. 

Although the surprising figures 

showed that millions of people 

have never gone online, the 

picture is improving. Two years 

ago almost 9m people had never 

used the internet, and a year ago it 

was 8.1m. 

Among those who had never 

used the internet, almost six in 10 

were female. 

BRITAIN should make more 

government data publicially 

available in order to boost the 

economy, according to a government 

report released yesterday by YouGov 

boss Stephan Shakespeare, who is 

also chair of the Data Strategy Board. 

The report says policy decisions on 

matters such as health and transport 

should be driven by data analysis. 

“To paraphrase Sir Terry Leahy, to 

run an enterprise without data is 

like driving by night with no 

headlights,” explains Shakespeare, 

who writes a column for City A.M. 

“Yet that is what government often 

13 

“marginally lower” than last year. 

Cineworld’s purchase of 

Picturehouse also helped lift 

takings. The deal has been referred 

to the Competition Commission. 

Other income, including screen 

advertising, was up 53.9 per 

cent on the previous year. 

Blockbusters such as 

the latest instalments of 

Iron Man, Star Trek and 

the Hunger Games are 

set to drive sales for the 

rest of the year. 

IN BRIEF 

Iron Man 3 has helped 

revenues at Cineworld 

Pinewood’s expansion blocked 

n South Bucks district council 

yesterday rejected Pinewood 

Shepperton’s £200m site extension 

plan designed to help it compete 

internationally. The plans would 

increase the studio capacity at the 

centre - where James Bond is filmed - 

by 100,000 square metres. “It is hard to 

believe, given the country’s economic 

difficulties that SBDC would turn down 

a £200m project creating 3,100 jobs,” 

said chief exec Ivan Dunleavy. 

Datatec profit falls due to Europe 

n South African software company 

Datatec saw revenues rise four per 

cent to $5.25bn (£3.45bn) in the year 

to the end of February, the firm 

revealed yesterday, although profits 

slid from $138m to $127m. The 

company’s networking technology is 

sold in over 100 countries but it has 

been hit by poor demand in Europe 

recently. However the company, which 

has a second listing in London, saw 

shares rise by 4.44 per cent 

Lonmin miners back to work 

n Striking workers at Lonmin, the 

FTSE listed miner, were returning to 

work late last night, signalling a 

breakthrough in talks between unions 

and the company. Miners at its South 

African platinum mines had downed 

tools for wildcat strikes over a 

shooting last weekend. It prompted 

fears of a return to last year’s violence, 

when 34 miners were shot dead. 

Lonmin said discussions with workers 

were “on-going”. 

Report says releasing official 

data will boost the economy 

BY JAMES WATERSON does. It has a strong institutional 

tendency to proceed by hunch, or 

prejudice, or by the easy option.” 

Shakespeare recommends 

creating a new centrally-defined 

National Data Strategy and wants 

public sector bodies to publish data 

swiftly “even if imperfect”. 

He also suggests government 

agencies such as Companies House, 

the Land Registry and Ordnance 

Survey should prioritise the overall 

economy rather than their own 

income when charging for data. 

The report cites the example of 

releasing live data on London bus 

times, which it says has saved the 

economy up to £58m in work time.

All you 

can eat 

data 

500 

Minutes 

5000 

Texts

cityam.com 

Land Securities 

pushes on with 

developments 


LAND Securities topped forecasts yesterday 

as its central London properties 

and new shopping centres drove a 4.1 

per cent rise in net asset value over the 

year. 

The company behind the Walkie 

Talkie skyscraper said the office market 

remains sluggish as nervous companies 

shy away from big 

commitments, but a looming squeeze 

on high-quality space will continue to 

attract tenants to its sites. 

“Our blood is up as far as London is 

concerned. The push into development 

that we started a couple of years 

ago is really starting to pay off,” chief 

executive Robert Noel told City A.M. 

The Walkie Talkie, due to complete 

next April, is 56 per cent pre-let or in 

solicitors’ hands. 

The firm has as much as 2m square 

feet of new space in the pipeline, 

including a mixed-use building on 

New Ludgate, which Noel said “we will 

be pushing the button on soon” for 

delivery in 2015. 

Yesterday the company confirmed 

the start of a £768m project at Victoria 

Circle, which is being redeveloped 

with the Canada Pension Plan 

Investment Board. 

Land Securities’ retail portfolio 

reflected the split between prime sites 

and the rest of the country. The 

Trinity Leeds mall opened in March 

with 95 per cent of the space already 

THE GOVERNMENT has unveiled a 

new visa scheme for Chinese 

business people, following claims 

that wealthy tourists are avoiding 

the UK due to an excessively tough 

immigration system. 

The Home Office will enter into 

talks with tour operators to make 

it easier for well-heeled visitors 

from the world’s second biggest 

economy to come to Britain and – 

most importantly for the 

government – spend in UK shops. 

let, but overall footfall in the firm’s 

shopping centres was down 2.6 per 

cent on last year. 

“Bricks and mortar isn’t dead. But 

there are large swathes of the country 

where retail will never be the same 

again,” said Noel. “The REITs [real 

estate investment trusts] own the best 

locations. If tenants do go bust, we can 

attract more. 

“We have a deep relationship with 

our retailers, we know where they do 

well and we have been changing our 

portfolio over the last five years.” 

Profits from rental income fell 8.7 

per cent to £290.7m in the year to the 

end of March, as the firm sold off and 

demolished some properties to make 

way for new projects. 

Group pre-tax profits rose 3.4 per 

cent to £533m. 

Analysts at Liberum said the statement 

“compares very favourably to 

British Land”, which reported flat net 

asset value this week. 

Land Securities Group PLC 

1,000 p 985.00 

15 May 

980 

960 

940 

920 

Rob Noel heads up Land 

Securities, one of the 

firms building the 

Walkie Talkie tower 


UK plans faster visa scheme for 

high-spending Chinese tourists 

BY JAMES WATERSON Under the plan Chinese visitors 

will be able to pay extra to have UK 

officials collect data at their home 

or office rather than travelling to a 

visa application centre. 

However, the proposals fall well 

short of calls from retailers for 

Britain to join the Schengen free 

movement area, which covers 26 

European countries. At the 

moment Chinese tourists can fill 

out one form for a visa covering the 

whole Schengen zone but have to 

pay extra and fill out additional 

forms if they want to visit the UK. 


NEWS 

Centamin’s production rises in 

first quarter but lawsuit looms 

BY SUZIE NEUWIRTH “The key to Centamin’s rerating 

GOLD miner Centamin yesterday 

posted solid first quarter results, 

with earnings per share up 66 per 

cent year-on-year. 

Production rose to 87,016 ounces, 

up two per cent quarter-on-quarter 

and 77 per cent year-on-year. 

However, while analysts said that 

the results were in line with 

expectations, legal issues 

surrounding a mining licence will 

continue to overshadow the 

company. 

remains a successful finalisation of 

the court case regarding the validity 

of the Sukari mining licence,” said 

Cannacord. “In the meantime, this 

remains an overhang and will likely 

limit the share price response to 

operational delivery”. 

Numis Securities affirmed the 

view that the results were 

“distracted by the ongoing legal 

issues.” 

Centamin reported revenues of 

$138.2m (£90.8m) for the quarter, a 

slight decrease from $138.5m in the 

15 

last quarter of 2012 but up from 

$87.8m in the first quarter of 2012. 

The company has maintained its 

full-year production guidance. 

“Following on from record 2012 

financial results, the team…have 

delivered a second successive 

quarter of record gold production, 

with further improvements across 

all areas of the operation,” said 

chairman Josef El-Raghy. 

“This marks a solid start to the 

year and output remains on target 

to achieve the 2013 guidance of 

320,000 ounces.”

16 

THECAPITALIST EDITED 

RBS celebrates 

Asian women 

business stars 

LONDON’S most successful Asian 

female high fliers were out in force 

yesterday evening at Park Lane’s 

Hilton hotel for the 2013 Asian 

Women of Achievement Awards, held 

in association with RBS. 

Fergie and Cherie Blair both turned 

out for a glass of champagne to toast 

the winners of the awards, which 

have been handed out to the most 

successful Asian ladies in business 

since 1999. 

Among the 13 winners were 

three City women, including 

the big award of the night – the 

Chairman’s award – which 

went to Ernst & Young’s director 

of global immigration Sue 

Kukadia. Also taking home 

trophies were Accenture con- 

Ernst & Young’s director of 

immigration Sue Kukadia 

sultant Sanju Pal who was named 

young Asian woman of achievement, 

and managing director of international 

strategy at JP Morgan Grace Wang – 

who won the business gong. 

Those who didn’t make it to the 

bash to see Blair in the flesh could 

catch her on CNBC instead. On the 

subject of female achievement, the 

barrister recalled first meeting husband 

Tony outside the interview 

room for a scholarship at 

Lincoln’s Inn that they were 

both applying for. “He’s Blair 

and I’m Booth. We were sitting 

in alphabetic order so 

that’s the first time I sat 

next to him – and I won” 

she joked. Although if 

Tony had got the scholarship, 

perhaps we’d have 

been spared the indignity 

of Blair’s babes. 


cityam.com/the-capitalist 

The retiring head of the Bank of England Sir Mervyn King will be watching his successor 

Outgoing governor Sir Mervyn’s 

pension fears seem a little rich 

LEAVING the Bank of England after 

so long is hard for Sir Mervyn King. 

Speaking yesterday, King started 

to sound like one of us, subject to 

the whims of central bankers: “I 

have great sympathy with those 

who rely on savings. As a 

pensioner myself – I have recently 

acquired that status – you can see 

why I am concerned.” 

The rest of the Bank evidently 

shares King’s concern. A body 

devoted to limiting inflation has 

been hedging its own pension bets 

for years – quite sensibly, given the 

MPC’s inability to meet its targets. 

The Bank’s pension fund is 94.7 per 

cent invested in index-linked gilts 

and other index-linked securities. 

What a relief for King, whose 

pension pot was worth £5.3m in 

2009, when last disclosed. 

cityam.com 

Got A Story? Email 

thecapitalist@cityam.com 

BY CALLY SQUIRES 

Online entrepreneur and cofounder 

of the website 

lastminute.com Lady (Martha) Lane- 

Fox was giving the scoop on her digital 

success at one of Ben & Jerry’s 

business workshops this week. Lane- 

Fox recounted the tale of her first 

meeting with Gordon Brown. Sitting 

next to Brown at a Chequers lunch, she 

grilled the then Prime Minister 

on his favourite karaoke 

song – which turned out 

to be Love Me Do by The 

Beatles. 

“Not many people 

around the country might 

be feeling that” was 

Lane-Fox’s instant 

response. Cue 

polite laughter. 

Just over four weeks to go now 

until a team of brave runners 

from City A.M. take part in the Gherkin 

Challenge on 23 June. Sprinting up the 

steps with our finest in-house athletes 

will be hundreds of other City fitties. 

However, the race up the 38 floors to 

the top of 30 St Mary Axe is already 

proving to be a dramatic affair. The 

City A.M. team are temporarily a man 

down after a dislocated shoulder took 

out one team member during a 

rigorous office training session. Brings 

a whole new meaning to the mantra 

no pain, no gain. Money raised from 

the climb goes to children’s charity 

NSPCC: www.gherkinchallenge.org.uk

cityam.com 

CITY MOVES 

ICAEW 

The Institute of Chartered 

Accountants for England and 

Wales (ICAEW) has appointed 

Giles Derry as chairman of its 

corporate finance faculty. 

Derry is currently a partner at 

Dunedin, and previously 

worked at Sand Aire Private 

Equity. It is the first time 

someone from private equity 

has become a chair at the ICAEW. 

Bird & Bird 

The law firm has appointed two new partners to its 

London office. Victoria Hobbs and Graeme Payne 

Compass raises 

dividend 11pc 

as profits surge 

BY HARRY BANKS 

COMPASS Group, the world’s biggest 

caterer, posted an eight per cent rise 

in first half profit yesterday, and said 

a strong pipeline of new work in 

North America and emerging markets 

gave it confidence for its full-year 

prospects. 

The firm, which operates in some 

50 countries and serves 4bn meals a 

year, said underlying pretax profit for 

the six months to 31 March rose 8.1 

per cent to £611m on revenues up 4.1 

per cent to £8.8bn, in line with analysts’ 

consensus forecast. 

The strong performance enabled 

the group to raise its interim dividend 

11 per cent to 8p per share. 

The group, which provides catering 

to everyone from schools and hospitals 

to offshore rigs and the 

Wimbledon tennis, said revenue 

growth had been driven in particular 

by new contracts and retentions in its 

core North American market and in 

Australia’s oil and gas industry. 

As expected, in Europe, where the 

firm is cutting loss-making contracts 

and selling businesses in the south to 

ENERGY services company John 

Wood Group said yesterday delays 

in its gas turbines division should 

recover by the end of the year to 

allow the group to meet forecast 

growth of 15 per cent for 2013. 

The company, which designs, 

builds and maintains oil and gas 

facilities and pipelines, said its gas 

turbines producing division, Wood 

Group GTS, was currently behind 

schedule due to delays to engine 

overhauls but is expected to 

recover over the rest of the year. 

The engineering division and 

Wood Group PSN – which offers 

services to brownfield energy 

WHO’S SWITCHING JOBS Edited by Annabel Palmer 

both previously worked in the franchise dispute 

resolution team at Field Fisher Waterhouse. 

Pinebridge Investments 

Wael Aburida has joined the asset management firm 

as chief investment officer of its Middle East, North 

Africa and Turkey team. Aburida was most recently at 

Waha Capital, where he was director of mergers and 

acquisitions (M&A). Prior to that, he was director of 

the global M&A group at Intel. 

Marsh 

The insurance firm has appointed Neil Irwin to lead its 

business development across its Middle East and 

North Africa region. Irwin joined the firm in 1991, and 

has since held a variety of strategic business 

offset weak markets, revenue fell at 

constant currency, although its operating 

profit margin increased due to 

cost savings. 

The firm, which makes 35 per cent 

of revenue in its Europe and Japan 

division, said it had started to see hospitality 

budgets being squeezed in 

countries like Sweden and the Czech 

Republic, while France has worsened 

in recent months. 

Compass said group organic revenue 

growth was 4.1 per cent including 

the negative impact of Easter 

timing, or 4.8 per cent on a comparable 

working days basis, in line with 

forecasts. 


Restaurant Group is planning to open more Frankie & Benny’s sites this year 

Restaurant Group shares hit 

record high as margins improve 

BY CITY A.M. REPORTER 

BRITAIN’S Restaurant Group said 

yesterday it had the best new site 

pipeline in years after reporting 

rising organic sales and margins in 

the first 19 weeks of the year, 

sending its shares up 6.8 per cent 

to an all time high of 519p. 

The chain, which owns over 400 

restaurants and pubs in Britain, 

said it expected to open at least 30 

new sites this year, the majority of 

which will be Frankie & Benny’s 

restaurants, and has more 

openings planned for 2014. 

Adding to its portfolio of 

American-style eateries, 

Contract wins 

boost Serco 

BY KATIE HOPE 

INTERNATIONAL services firm Serco 

said yesterday that it was on track 

for 2013. 

New contract wins since the start 

of the year total £0.9bn, and the firm 

continues to expect a small 

improvement on the 3.3 per cent 

rate of organic revenue growth seen 

last year. The firm, which operates 

over 700 outsourcing contracts 

worldwide, said it remained 

confident in its “overall outlook and 

future growth prospects.” 

All resolutions were passed at 

Serco’s subsequent AGM including 

its remuneration report, which 4.4 

per cent voted against. 

development, consulting, and senior management 

positions. 

Gide Loyrette Nouel 

The law firm has made two appointments to its 

structured finance and securitisation team. Samir 

Bensake joins as an associate from Allen & Overy’s 

Paris office, where he advised arrangers and 

originators on securitisation transactions. Jeremie 

Bismuth, who also joins as an associate, was 

previously at Orrick. 

Informatica 

The data integration software company has 

announced that Andrew M. Miller will join its board of 

directors. He is currently president and chief 

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com 

Compass Group PLC 

900 p 878.00 

890 

15 May 

880 

870 

860 

850 

840 


Wood Group set to meet growth 

forecasts despite turbine delays 

BY CITY A.M. REPORTER projects – were performing in line 

with expectations, the company 

said, with growth coming from the 

North Sea and shale in the United 

States. 

Wood Group said it expected 

about 15 per cent underlying 

growth in 2013. 

European peers such as 

Norway’s Aker Solutions and 

Italy’s Saipem both issued profit 

warnings earlier this year. 

“Our balance sheet remains 

strong and we remain confident of 

achieving full year performance in 

line with expectations,” chief 

executive Allister Langlands told 

investors at the company’s AGM 

yesterday. 

Restaurant Group’s new Coast to 

Coast restaurants also performed 

particularly well, it said. Total 

sales rose by 11 per cent and likefor-like 

sales by 4.5 per cent. 

Restaurant Group PLC 

520 p 

510 

500 

490 

480 

519.00 

15 May 


CIDER group C&C said yesterday 

sales of its star brand Magners 

had fallen for the first time in a 

decade, as it hailed strong sales 

of Tennent’s lager for propping 

up its core brands. 

Profits at the company rose 

2.4 per cent to €113.9m on 

revenues 0.8 per cent lower at 

€476.9m, as Magners volumes 

fell almost 14 per cent with 

sporting events such as the 

Olympic Games failing to lift 

sales. 

Overall, cider volumes fell 

by two per cent – their first 

decline in a decade – as poor 

IN BRIEF 

Barratt refinances ahead of time 

n House builder Barratt 

Developments impressed investors 

yesterday by agreeing a new loan 

facility of £850m and paying off 

private placement notes ahead of 

schedule. FTSE 250-listed Barratt said 

the measures will help it become free 

of net debt by 2015. The firm has also 

cancelled £55m of interest rate swaps. 

Shares in the group closed up 5.7 per 

cent at 329.1p yesterday. 

Birds Eye secures new captain 

n Fish finger maker Birds Eye has a 

new captain – former music boss Elio 

Leoni Sceti. Sceti, who was chief 

executive of EMI Music, will take over 

the top job at the iconic fish brand’s 

owner Iglo Group, taking over from 

interim boss Erhard Schoewel, who 

reverts back to his role as nonexecutive 

chairman. Iglo Group, which 

also owns frozen food maker Findus, is 

backed by private equity outfit 

Permira. 

Lookers hails excellent trading 

n Motor dealership Lookers said 

yesterday that trading had been 

“excellent” in the first three months of 

the year. Its new car retail sales 

increased by 13 per cent, 

outperforming the overall UK retail 

market which rose 11 per cent in the 

same period. It said however that fleet 

volumes fell seven per cent, lagging 

the seven per cent rise in the UK fleet 

market over the same period. It 

attributed the fleet weakness to a low 

margin deal last year which has been 

discontinued. 

Magners sales fall as C&C battles 

against weak market for cider 

BY CITY A.M. REPORTER UK weather depressed 

NEWS 

executive of Polycom. He previously led high-growth 

sales organisations for Cisco. 

17 

TIW 

The technology company has announced the 

appointment of David Hay as business development 

director. He has over 25 years’ experience as an 

underwriter, and joins from Cognizant, where he led 

its London market practice. 

Cluff Natural Resources 

The oil, gas and mining investment company has 

hired Graham Swindells as chief financial officer. 

Swindells has worked in corporate finance for the 

past 12 years, and was most recently a director in 

Ernst & Young’s M&A team. 

consumption in the market’s key 

summer months. 

Strong sales of Tennent’s helped 

boost international sales, while 

UK lager sales fell by 5.9 per cent. 

“While it has not been an easy 

year for our core cider brands, 

with poor weather and 

increased competition, 

particularly in the UK, the 

second half did bring some 

trading stability in 

Ireland,” said chief executive 

Stephen Glancey. 

Sales of Magners have fallen for 

the first time in a decade


18 

CITYDASHBOARD 

In association with 

LONDON REPORT 

FTSE edges up 

to secure fresh 

post-crisis high 

SOLID corporate earnings helped 

push the UK’s top share index to 

a fresh five and a half year 

closing high yesterday, led by 

EasyJet after a robust update. 

The UK benchmark ended up 7.49 

points, or 0.1 per cent, at 6,693.55, its 

highest close since October 2007. 

Easyjet and exchange operator 

London Stock Exchange were bolstered 

by estimate-beating updates, 

notching up respective gains of 8.3 per 

cent and 5.3 per cent. 

Traders said the positive earnings 

news was very much the focus on a 

day otherwise marked by gloomy economic 

data from the Eurozone, which 

contracted in the first quarter. 

Technical analysts remained bullish 

on the index, which has just recorded 

its tenth consecutive day of gains. 

“You can’t fight the trend,” said 

Lynnden Branigan, technical analyst at 

Barclays Capital, who has 6,754, the 

2007 peak, as an initial target. 

David Buik, market commentator at 

Panmure Gordon noted that trading 

volumes were low. “Volumes have been 

derisory with 418 million shares 

changing hands on the LSE,” he said. 

The FTSE has risen 7.5 per cent in the 

past month as pledges of continued 

monetary stimulus from global central 

banks, and especially the US 

Federal Reserve and European Central 

Bank, underpinned investor appetite 

for risk assets. 

Neil Veitch, investment manager at 

SVM Asset Management, reckoned the 

market would grind higher into the 

year-end, but has cut exposure to 

defensives which have led the rally in 

2013, perceiving them to be fully valued. 

He has been switching into more 

cyclical stocks – most recently 

International Airlines Group. 

While technical momentum indicators 

such as the relative strength index 

show the FTSE 100 is in ‘overbought’ 

territory, fund managers see scope for 

more gains as investors continue to 

plump for equities over bonds due to 

better returns. 

“That trend is not showing any signs 

of abating,” said Miton fund manager 

George Godber, referring to the 

greater lure of equities. 

Godber, manager of the CF Miton UK 

Value Opportunities Fund, stressed the 

importance of being selective in stock 

picking, with ITV and Sainsbury 

among stocks he owns. 

The FTSE 100 trades on a 12-month 

forward price/earnings ratio of 12.31 

times, according to Thomson Reuters 

data. “The markets generally are actually 

looking quite good value still,” said 

Leigh Himsworth, head of UK equities 

at City Financial and manager of the 

CF Eden UK Select Opportunities 

Fund. 

A fall in the value of stocks trading 

without the attraction of their latest 

dividend, including oil major Royal 

Dutch Shell exerted pressure on the 

index to the tune of 9.59 points. 

FTSE 

6,720 

6,700 

6,680 

6,660 

6,640 

6,620 

6,600 

6,580 

6,693.55 

15 May 


Apple Inc. might be falling 

from the tree, do you: 

Capital Spreads is a trading name of London Capital Group Ltd (LCG), which is authorised and regulated by the Financial Conduct Authority. 

Apple, the Apple logo, iPod, iPod touch, and iTunes are trademarks of Apple Inc., registered in the U.S. and other countries. 

a) Explain to the younger members of your 

family Newton’s theory of Gravity 

b) Forget what you learnt at school, hope Tim Cook’s 

buy-back plan works and buy Apple for the bounce 

Can you profi t from your predictions? Apply today at CapitalSpreads.com, great value for Spread Betting and CFDs. 

Spread betting carries a high level of risk to your capital and can result in losses that exceed your initial deposit. This advert should not be construed as investment advice. 

cityam.com 

YOUR ONE- 

STOP SHOP 

BROKER VIEWS AND 

MARKET REPORTS 

BESTof the BROKERS NEW YORK 

REPORT 

To appear in Best of the Brokers, email your research to notes@cityam.com 

BG Group PLC 

1,260 p 

1,240 

1,220 

1,200 

1,180 


1,140 

1,225.50 

15 May 


BG GROUP 

Canaccord Genuity has cut its rating on the energy explorer from “buy” to “hold” 

and kept its price target at 1,300p following a strategy update. The broker sees few 

catalysts for a further recovery in BG’s shares for the next two or three years, but 

remains keen on the firm’s LNG projects and its strong focus on exploration. At 

current levels, BG shares have a 33 per cent upside to Canaccord’s valuation. 

Daily Mail and General Trust PLC 

770 p 

760 

750 

740 

730 

720 

710 

763.50 

15 May 


DAILY MAIL & GENERAL TRUST 

Numis has a “buy” rating on the media group and hikes its target price from 787p to 

895p ahead of first-half results on 23 May. The broker considers DMGT a key pick 

and sees scope for forecast upgrades during 2013. Following a detailed pre-close 

statement in March, Numis is looking for guidance on trading during the rest of the 

year. 

Rolls-Royce Holdings PLC 

1,230 p 

1,220 

1,210 

1,200 

1,190 

1,180 

1,170 


1,225.00 

15 May 


ROLLS-ROYCE 

Edison Investment Research has started covering the engineering group with a 

bullish view, seeing a fair value of 1,419p. Analysts at Edison think Rolls-Royce’s 

current share price fails to properly value the firm’s long-term visibility on orders 

and an improving operational performance. Revenues are set to double over the 

next decade, Edison reckons. 

US stocks rise 

to another 

record close 

US stocks rose on yesterday, with 

the Dow and S&P 500 hitting 

new all-time highs in a broad 

market rally as the recent 

upward momentum persisted. 

The Nasdaq also hit its highest level 

since November 2000 although gains 

were limited by a steep decline in 

Apple . 

Shares of the tech giant sold off in 

late afternoon trading after filings 

from hedge funds showed that the 

one-time Wall Street darling was 

dropped by more famous hedge fund 

managers in the first quarter. 

The day’s gains were broad, with 

nine of the S&P 500’s 10 sectors ending 

higher. Among the top gainers 

were the consumer staples sector 

index, up one per cent, and the financial 

sector, also up one per cent. The 

only decliner was the energy sector 

index, down 0.4 percent. 

The overall market showed further 

signs of strength despite the S&P 500 

rising to a record for the fourth session 

in a row. The broad market index 

has recorded 15 new closing highs 

this year. 

The Dow Jones industrial average 

rose 60.44 points, or 0.40 per cent, to a 

record 15,275.69 at the close. 

The Standard & Poor’s 500 Index 

added 8.44 points, or 0.51 per cent, to 

finish at a record 1,658.78. 

The Nasdaq Composite Index gained 

9.01 points, or 0.26 per cent, to close 

at 3,471.62. 

During the session, the Dow 

touched an all-time intraday high at 

15,301.34, while the S&P 500 reached 

a record intraday peak at 1,661.49. 

Earlier, the Nasdaq had hit a fresh 52week 

high at 3,475.48. 

Tech shares also got a lift from 

Netflix, up four per cent at $243.40, 

and Yahoo, up 2.6 per cent at $27.34. 

In contrast, Computer Sciences was 

the S&P 500’s biggest loser, dropping 

9.7 per cent to $44.71 after reporting 

results.


19 

MARKETS 

cityam.com 

CONSTRUCTION & MATERIALS 

Gold............................................................1410.00 -23.75 

Silver..............................................................22.87 -0.57 

Brent Crude ..................................................101.88 -0.52 

Krugerrand.................................................1419.40 -24.60 

Palladium ....................................................727.00 9.00 

Platinum....................................................1496.00 7.00 

Tin Cash Official .......................................20597.50 -40.00 

Lead Cash Official ......................................1948.50 -27.00 

Zinc Cash Official ........................................1792.25 -21.50 

Copper Cash Official ..................................7095.25 -100.00 

Aluminium Cash Official............................1800.25 -25.00 

Nickel Cash Official ...................................14827.50 -275.00 

Aluminium Alloy Cash Official ..................1750.00 5.00 

Cocoa Futures............................................2342.00 0.00 

Coffee 'C' Futures ..........................................141.65 0.00 

Feed Wheat Futures .....................................191.25 0.00 

Soybeans Futures Continuation Contract...1414.75 0.00 

AIR LIQUIDE ......................................................97.88 -0.04 100.00 83.45 

ALLIANZ N........................................................118.35 0.60 120.70 68.50 

ANHEUS.-BUSCH INBEV ...................................75.89 0.07 79.60 52.11 

ARCELORMITTAL REG..........................................9.76 -0.03 13.76 8.52 

ASML HLDG ......................................................60.82 1.04 62.77 45.08 

AXA...................................................................14.97 0.18 15.08 8.65 

BANCO SANTANDER ...........................................5.43 0.09 6.68 3.98 

BASF N..............................................................73.58 -0.72 76.20 51.13 

BAYER N ...........................................................85.03 0.51 84.65 47.63 

BBVA ..................................................................7.46 0.07 7.86 4.31 

BMW .................................................................71.93 -1.38 76.16 53.16 

BNP PARIBAS-A- ..............................................45.75 0.71 47.92 24.54 

CARREFOUR .....................................................23.60 0.27 23.80 12.87 

CRH PLC .............................................................15.16 -0.23 16.93 12.81 

DAIMLER N .......................................................46.52 0.55 47.27 32.86 

DANONE ...........................................................58.88 -0.07 59.75 45.61 

DEUTSCHE BANK N ...........................................36.78 0.68 38.73 22.11 

DEUTSCHE TELEKOM N........................................9.78 -0.07 10.06 7.69 

E.ON N...............................................................12.95 -0.07 19.74 12.42 

EADS .................................................................43.12 0.68 42.59 24.26 

ENEL...................................................................2.95 -0.01 3.30 2.02 

ENI ....................................................................18.97 0.07 19.59 14.94 

ESSILOR INTL....................................................88.90 0.17 89.99 67.43 

FRANCE TELECOM ...............................................8.32 -0.00 11.58 7.20 

GDF SUEZ..........................................................16.46 -0.12 20.35 14.05 

GENERALI..........................................................14.62 0.02 14.97 8.16 

IBERDROLA.........................................................4.25 0.04 4.29 2.63 

INDITEX...........................................................105.50 1.15 111.80 64.10 

ING GROEP.........................................................6.89 0.17 7.91 4.44 

INTESA SANPAOLO ..............................................1.46 0.05 1.54 0.85 

L'OREAL...........................................................135.90 -0.10 137.85 86.80 

LVMH ...............................................................137.90 2.15 143.40 111.00 

MUNICHRE.......................................................150.75 -1.40 158.65 95.85 

REPSOL .............................................................18.42 0.19 18.55 10.90 

ROY.PHILIPS .....................................................22.40 0.30 24.16 13.78 

RWE ..................................................................27.41 -0.21 36.47 25.83 

SAINT GOBAIN ..................................................32.47 -0.14 33.58 23.90 

SANOFI .............................................................84.77 0.02 86.35 53.20 

SAP ..................................................................64.05 0.02 65.00 43.62 

SCHNEIDER ELECTRIC........................................58.95 0.05 60.71 39.40 

SIEMENS N........................................................81.08 -0.23 88.25 62.13 

STE GENERALE-A- ............................................30.60 0.61 34.40 15.10 

TELEFONICA ........................................................11.18 0.11 11.78 7.90 

TOTAL ...............................................................38.90 -0.08 42.00 33.42 

UNIBAIL-RODAMCO ........................................202.40 0.60 202.00 130.50 

UNICREDIT...........................................................4.19 0.09 4.88 2.25 

UNILEVER CERT.................................................32.89 0.65 33.04 24.55 

VINCI ................................................................37.88 0.17 38.50 31.23 

VIVENDI.............................................................15.72 -0.27 17.44 12.43 

VOLKSWAGEN VZ............................................162.70 2.45 187.40 115.95 

Price Chg High Low 

EU SHARES 

WORLD INDICES 

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 6693.55 7.49 0.11 

FTSE 250 . . . . . . . . . . . . . . . . . . . . 14476.01 98.32 0.68 

FTSE All-Share . . . . . . . . . . . . . . . . 3526.54 7.00 0.20 

FTSE AIM All-Share . . . . . . . . . . . . . 724.94 7.65 1.07 

S&P 500 . . . . . . . . . . . . . . . . . . . . . 1658.78 8.44 0.51 

Dow Jones I.A. . . . . . . . . . . . . . . . 15275.69 60.44 0.40 

Nasdaq Composite. . . . . . . . . . . . . 3471.62 9.01 0.26 

Xetra DAX. . . . . . . . . . . . . . . . . . . . 8362.42 23.31 0.28 

CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3982.23 16.17 0.41 

Swiss Market Index . . . . . . . . . . . . 8313.08 125.33 1.53 

ISEQ Overall Index . . . . . . . . . . . . . 4010.03 34.61 0.87 

FTSEurofirst 300. . . . . . . . . . . . . . . 1245.66 10.17 0.82 

Hang Seng. . . . . . . . . . . . . . . . . . 23044.24 113.96 0.50 

Shanghai Composite. . . . . . . . . . . 2224.80 7.79 0.35 

Straits Times. . . . . . . . . . . . . . . . . . 3441.53 8.77 0.26 

ASX All Ordinaries . . . . . . . . . . . . . 5173.30 -29.20 -0.56 

Price Chg %chg 

3M....................................................................111.50 0.91 111.72 81.99 

ALCOA................................................................8.50 -0.06 9.93 7.90 

AMERICAN EXPRESS .........................................72.78 1.27 73.04 53.02 

AT&T..................................................................37.53 0.30 39.00 32.71 

AVERY DENNISON............................................44.36 0.85 44.45 26.18 

BANK OF AMERICA ...........................................13.44 0.10 13.55 6.72 

BOEING CO........................................................97.02 0.91 97.47 66.82 

CATERPILLAR....................................................87.00 -0.55 99.70 78.25 

CHEVRON ........................................................123.01 -1.99 125.00 95.73 

CISCO SYSTEMS ..................................................21.21 -0.06 21.98 14.96 

COCA-COLA CO .................................................42.92 0.40 43.10 35.58 

COMCAST-A ......................................................43.73 0.40 43.64 28.09 

CORNING INC ....................................................15.68 0.15 15.71 10.62 

DISCOVERY COMM-A.........................................79.35 1.03 81.43 48.00 

DU PONT NEMOURS&CO ...................................55.55 0.39 55.70 41.67 

EMC ..................................................................23.02 0.02 28.18 21.45 

EOG RESOURCES.............................................134.69 -1.98 139.00 82.48 

EXPEDIT INTL WASH.........................................38.63 -0.08 43.80 34.20 

EXXON MOBIL ...................................................91.24 0.13 93.67 77.13 

GANNETT CO .....................................................21.62 -0.23 22.21 12.17 

GENERAL ELECTRIC...........................................23.24 0.23 23.90 18.02 

HEWLETT-PACKARD .........................................20.97 -0.55 24.05 11.35 

HOME DEPOT ....................................................77.88 0.56 78.25 46.37 

IBM.................................................................203.32 0.11 215.90 181.85 

INTEL................................................................24.20 0.36 27.75 19.23 

INTERCONTALEXCH...........................................174.81 -1.10 177.70 117.82 

IRON MOUNTAIN...............................................39.10 -0.22 39.71 27.10 

JOHNSON & JOHNSON......................................87.64 0.67 87.88 61.71 

JPMORGAN CHASE ...........................................51.09 0.86 51.43 30.83 

KINDER MORGAN ............................................40.20 0.22 40.42 30.51 

LEGGETT & PLATT ..............................................34.12 0.19 34.16 19.26 

LSI......................................................................7.09 0.06 7.66 5.99 

MARATHON OIL................................................35.00 -0.38 35.86 23.17 

MASCO.............................................................22.60 0.43 22.66 11.53 

MCDONALD'S...................................................101.95 0.75 103.70 83.31 

MERCK .............................................................46.73 0.08 48.79 37.02 

MICROSOFT.......................................................33.85 0.32 33.91 26.26 

PARKER-HANNIFIN CO......................................97.83 1.15 98.15 70.42 

PEOPLE'S UNTD.................................................13.84 0.24 13.73 11.20 

PFIZER .............................................................29.56 0.16 31.15 21.40 

PRECISION CASTPARTS ....................................211.50 -0.79 212.52 150.53 

PROCTER&GAMBLE ..........................................80.68 1.21 82.54 59.07 

QEP RESOURCES ...............................................29.17 -0.30 33.50 24.35 

TRAVLR COMP ...................................................87.78 -0.12 89.00 60.08 

UNITEDHEALTH GROUP ....................................61.61 -0.12 63.95 50.32 

UTD TECHNOLOGIES ..........................................95.81 -0.12 95.97 70.71 

VERIZON COMM ...............................................53.60 0.43 54.31 40.51 

WAL-MART STORES..........................................79.86 1.08 79.96 59.16 

WALT DISNEY DISNEY .......................................67.67 0.20 67.79 43.51 

WELLPOINT.......................................................77.83 -0.17 78.10 52.52 

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 ...............................0.023 0.00 

LIBOR Euro - 12 months...............................0.389 0.00 

LIBOR USD - overnight .................................0.145 0.00 

LIBOR USD - 12 months ...............................0.689 -0.01 

Halifax mortgage rate ................................3.990 0.00 

Euro Base Rate............................................0.500 0.00 

Finance house base rate .............................1.000 0.00 

US Fed funds................................................0.210 0.00 

US long bond yield ......................................3.160 -0.03 

European repo rate.....................................0.025 0.00 

Euro Euribor ................................................0.083 0.00 

The vix index ................................................12.81 0.04 

The baltic dry index.....................................872.0 -7.00 

Markit iBoxx...............................................259.88 -0.57 

Markit iTraxx................................................98.02 -1.17 


Price Chg %chg Price Chg %chg Price Chg %chg 

US SHARES 

BAE Systems . . . . . . . .400.9 2.9 404.9 270.9 

Chemring Group . . . . . .293.3 1.1 414.7 217.0 

Cobham . . . . . . . . . . . . .280.1 3.0 281.1 190.1 

Meggitt . . . . . . . . . . . . .519.0 -2.5 525.5 364.3 

QinetiQ Group . . . . . . . .198.1 0.9 211.1 142.2 

Rolls-Royce Holdi . . . .1225.0 7.0 1229.0 796.0 

Senior . . . . . . . . . . . . . .265.1 -1.6 267.7 177.0 

Ultra Electronics . . . . . .1747.0 9.0 1768.0 1424.0 

GKN . . . . . . . . . . . . . . . .292.4 0.1 294.6 173.6 

Bank of Georgia H . . .1699.0 5.0 1764.0 963.0 

Barclays . . . . . . . . . . . . .318.7 4.6 327.4 150.6 

HSBC Holdings . . . . . . .754.4 8.0 756.8 503.2 

Lloyds Banking Gr . . . . .59.4 0.5 60.1 25.3 

Royal Bank of Sco . . . . .307.0 4.5 367.8 196.6 

Standard Chartere . . . .1577.5 -7.5 1837.5 1228.5 

Barr (A.G.) . . . . . . . . . . .565.0 15.5 572.0 348.0 

Britvic . . . . . . . . . . . . . .465.2 13.2 467.5 260.1 

Diageo . . . . . . . . . . . .2059.5 -9.5 2085.0 1477.0 

SABMiller . . . . . . . . . . .3657.0 12.0 3668.5 2348.5 

Alent . . . . . . . . . . . . . . .328.0 4.2 397.5 305.0 

AZ Electronic Mat . . . . .306.9 5.9 406.4 240.0 

Croda Internation . . . .2580.0 -12.0 2841.0 2094.0 

Elementis . . . . . . . . . . . .247.1 0.1 275.0 179.0 

Johnson Matthey . . . .2649.0 9.0 2655.0 2080.3 

Synthomer . . . . . . . . . .225.0 8.3 225.8 127.4 

Victrex . . . . . . . . . . . . .1631.0 11.0 1736.0 1185.0 

Balfour Beatty . . . . . . . .227.8 5.1 320.8 207.6 

CRH . . . . . . . . . . . . . . . .1410.0 4.0 1540.0 1052.0 

Galliford Try . . . . . . . . .983.5 35.5 995.5 579.0 

€/$ 1.2884 0.0048 

€/£ 0.8459 0.0041 

€/¥ 131.73 0.5542 

/€ 1.1822 0.0057 

/$ 1.5232 0.0016 

/¥ 155.73 0.0849 

Dixons Retail . . . . . . . . .36.5 -0.3 37.5 12.7 

Dunelm Group . . . . . . .821.0 -14.5 865.5 454.8 

Halfords Group . . . . . . .402.0 1.9 403.0 189.0 

Home Retail Group . . . .150.2 2.2 160.2 69.2 

Inchcape . . . . . . . . . . . .526.5 1.0 530.0 305.2 

Kingfisher . . . . . . . . . . .326.7 1.2 330.6 254.1 

Marks & Spencer G . . . .436.0 15.4 437.8 312.2 

Next . . . . . . . . . . . . . . .4615.0 15.0 4621.0 2899.0 

Sports Direct Int . . . . . .507.5 4.0 507.5 282.9 

Ted Baker . . . . . . . . . . .1363.0 1.0 1397.0 840.0 

WH Smith . . . . . . . . . . .735.5 -4.5 793.5 471.7 

NMC Health . . . . . . . . . .280.0 -0.5 349.0 169.8 

Smith & Nephew . . . . .780.0 14.0 780.0 580.0 

Synergy Health . . . . . .1085.0 -1.0 1118.0 762.5 

Barratt Developme . . . .329.1 17.7 329.4 114.0 

Bellway . . . . . . . . . . . . .1311.0 41.0 1377.0 660.0 

Berkeley Group Ho . . .2170.0 45.0 2191.0 1180.0 

Bovis Homes Group . . .753.0 23.0 778.5 399.3 

Persimmon . . . . . . . . .1147.0 49.0 1150.0 532.0 

Reckitt Benckiser . . . .4780.0 -20.0 4867.0 3300.0 

Redrow . . . . . . . . . . . . .218.9 4.0 221.4 107.3 

Taylor Wimpey . . . . . . . .97.0 2.5 97.0 40.3 

Bodycote . . . . . . . . . . .545.0 7.0 556.5 310.3 

Keller Group . . . . . . . . .934.0 67.0 956.5 348.3 

Kier Group . . . . . . . . . .1206.0 7.0 1408.0 1106.0 

Drax Group . . . . . . . . . .578.5 -11.5 657.5 442.0 

SSE . . . . . . . . . . . . . . . .1591.0 -20.0 1611.0 1294.0 

Dialight . . . . . . . . . . . .1335.0 -7.0 1364.0 935.0 

Domino Printing S . . . .672.0 -3.0 717.0 509.0 

Halma . . . . . . . . . . . . . .525.5 -5.5 531.5 373.1 

Laird . . . . . . . . . . . . . . . .206.1 1.2 249.3 177.0 

Morgan Advance Ma . . .281.1 3.7 305.0 220.3 

Oxford Instrument . . . .1511.0 -13.0 1752.0 1096.0 

Renishaw . . . . . . . . . . .1751.0 -23.0 2081.0 1260.0 

Spectris . . . . . . . . . . . .2135.0 -18.0 2470.0 1427.0 

Aberforth Smaller . . . . .821.0 1.0 826.0 548.0 

Alliance Trust . . . . . . . .459.4 1.4 459.4 337.0 

Bankers Inv Trust . . . . .549.0 -2.0 551.1 385.0 

BH Global Ltd. GB . . . . .1213.0 2.0 1215.0 1115.0 

BH Global Ltd. US . . . . . . .11.9 -0.1 12.1 11.0 

BH Macro Ltd. EUR . . . . .22.0 -0.0 22.2 18.3 

BH Macro Ltd. GBP . . .2300.0 -5.0 2305.0 1892.0 

BH Macro Ltd. USD . . . . . .21.9 -0.1 22.0 18.2 

BlackRock World M . . .505.5 -6.5 622.5 488.0 

BlueCrest AllBlue . . . . . .185.3 -0.1 186.0 162.7 

British Empire Se . . . . . .512.0 -1.0 522.0 386.6 

Caledonia Investm . . .1885.0 2.0 1900.0 1237.0 

City of London In . . . . .364.8 2.4 364.9 275.4 

Dexion Absolute L . . . . .148.0 -0.2 151.6 132.5 

Edinburgh Dragon . . .300.4 1.1 300.5 222.6 

Edinburgh Inv Tru . . . .589.0 3.5 589.5 466.6 

Electra Private E . . . . .2229.0 12.0 2398.0 1558.0 

Fidelity China Sp . . . . . . .93.5 0.3 99.0 70.3 

Fidelity European . . . .1496.0 -2.0 1508.5 992.0 

Foreign and Colon . . . . .373.7 1.3 373.9 282.5 

Herald Inv Trust . . . . . .546.0 -4.0 600.0 458.0 

HICL Infrastructu . . . . . .132.9 -0.4 133.3 117.4 

John Laing Infras . . . . . .114.9 0.0 116.0 106.0 

JPMorgan American . . .1112.0 6.0 1113.4 853.0 

JPMorgan Emerging . . .627.0 -3.5 641.0 497.0 

JPMorgan Indian I . . . .400.0 7.5 405.0 303.4 

Law Debenture Cor . . .493.0 -3.7 496.7 356.2 

Mercantile Invest . . . . .1323.0 3.0 1324.0 907.0 

Merchants Trust . . . . . .479.3 6.9 480.2 342.4 

Monks Inv Trust . . . . . . .361.7 3.2 361.7 300.0 

Murray Income Tru . . . .798.0 5.0 798.0 602.5 

Murray Internatio . . . .1238.0 -1.0 1240.0 900.0 

NB Global Floatin . . . . . .105.1 -0.3 107.6 96.0 

Perpetual Income . . . .347.2 0.7 348.0 250.0 

Personal Assets T . . .35900.0 -100.0 36530.0 33250.0 

Polar Capital Tec . . . . . .413.0 1.5 419.5 351.5 

RIT Capital Partn . . . . .1264.0 -8.0 1310.0 1108.0 

Schroder Asia Pac . . . . .271.5 -1.5 275.0 214.8 

Scottish Inv Trus . . . . . .592.0 2.0 592.0 437.4 

Scottish Mortgage . . . .855.0 14.0 862.5 624.0 

SVG Capital . . . . . . . . . .408.9 2.9 416.0 257.9 

Temple Bar Inv Tr . . . . .1174.0 -4.0 1179.0 847.0 

Templeton Emergin . . .636.0 -1.5 678.0 505.0 

TR Property Inv T . . . . .207.0 1.9 207.0 140.7 

Utilico Emerging . . . . .195.5 -1.7 202.9 156.0 

Witan Inv Trust . . . . . . .625.0 4.5 625.4 429.5 

Worldwide Healthc . . .1106.0 8.0 1110.0 763.0 

3i Group . . . . . . . . . . . .363.4 6.4 363.6 168.8 

3i Infrastructure . . . . . . .132.0 0.0 134.6 120.0 

Aberdeen Asset Ma . . .476.4 12.9 480.0 237.3 

Ashmore Group . . . . . .428.8 5.9 428.8 307.8 

Brewin Dolphin Ho . . . .209.4 1.4 222.0 136.3 

Camellia . . . . . . . . . . .9825.0-125.0 11105.0 9250.0 

Charles Taylor . . . . . . . .175.0 0.0 190.0 137.0 

City of London Gr . . . . . .61.0 0.0 81.0 58.5 

City of London In . . . . .266.0 1.0 363.3 240.0 

Close Brothers Gr . . . . .1081.0 18.0 1107.0 673.5 

F&C Asset Managem . . .92.3 -0.6 110.4 67.0 

Hargreaves Lansdo . . .1024.0 15.0 1029.0 463.9 

Henderson Group . . . . . .178.1 -0.9 179.6 90.6 

Highway Capital . . . . . . .13.5 0.0 18.5 12.5 

ICAP . . . . . . . . . . . . . . . .338.8 -0.9 376.6 280.8 

IG Group Holdings . . . .562.0 11.5 562.5 416.8 

Intermediate Capi . . . . .451.8 12.3 453.8 227.3 

International Per . . . . . .513.0 6.5 529.5 211.5 

International Pub . . . . . .131.7 0.3 132.3 116.4 

Investec . . . . . . . . . . . .502.0 4.4 513.5 310.4 

IP Group . . . . . . . . . . . . .147.0 0.1 158.6 105.1 

Jupiter Fund Mana . . . .343.8 7.2 361.1 197.0 

Liontrust Asset M . . . . .190.0 0.0 191.0 90.5 

LMS Capital . . . . . . . . . . .71.4 0.6 74.0 59.5 

London Finance & . . . . .26.5 0.0 27.9 18.0 

London Stock Exch . . .1406.0 71.0 1428.0 930.0 

Lonrho . . . . . . . . . . . . . . .9.9 4.7 10.5 4.0 

Man Group . . . . . . . . . . .124.9 3.3 125.7 63.3 

Paragon Group Of . . . .338.4 5.9 344.0 150.9 

Provident Financi . . . .1563.0 -1.0 1683.0 1069.0 

Rathbone Brothers . . .1496.0 8.0 1551.0 1151.0 

Real Estate Credi . . . . . .143.0 -1.3 150.0 81.5 

Record . . . . . . . . . . . . . . .31.6 0.0 35.3 15.9 

S & U . . . . . . . . . . . . . . .1145.0 -31.5 1245.5 720.0 

Schroders . . . . . . . . . .2560.0 79.0 2561.0 1166.0 

Tullett Prebon . . . . . . . .274.3 -6.7 317.7 219.0 

Walker Crips Grou . . . . .34.0 0.0 45.5 25.5 

BT Group . . . . . . . . . . . .312.6 1.1 312.9 200.7 

Cable & Wireless . . . . . .43.3 0.7 43.3 27.3 

COLT Group SA . . . . . . . .118.9 1.2 135.5 93.5 

KCOM Group . . . . . . . . . .87.0 -0.1 87.2 67.0 

TalkTalk Telecom . . . . .227.0 2.0 276.0 132.0 

Telecom Plus . . . . . . . .1217.0 3.0 1239.0 695.0 

Booker Group . . . . . . . .126.3 0.7 126.6 72.6 

Greggs . . . . . . . . . . . . .400.0 2.0 523.5 398.0 

Morrison (Wm) Sup . . .283.1 -8.8 296.4 248.6 

Ocado Group . . . . . . . .200.0 3.5 224.6 58.5 

Sainsbury (J) . . . . . . . . .377.3 -13.0 396.5 283.5 

Tesco . . . . . . . . . . . . . . .375.4 -1.4 387.8 297.1 

United Drug . . . . . . . . . .331.0 -2.0 340.0 158.5 

Associated Britis . . . . .2031.0 18.0 2044.0 1167.0 

Cranswick . . . . . . . . . .1078.0 -4.0 1082.0 732.5 

Dairy Crest Group . . . . .477.6 5.7 478.1 307.0 

Devro . . . . . . . . . . . . . .340.0 0.0 380.0 278.0 

Tate & Lyle . . . . . . . . . . .874.0 7.0 876.0 633.5 

Unilever . . . . . . . . . . .2852.0 30.0 2860.0 2007.0 

Mondi . . . . . . . . . . . . . .916.5 10.5 916.5 499.6 

Centrica . . . . . . . . . . . . .385.9 1.0 393.1 306.3 

National Grid . . . . . . . .844.5 -2.5 849.5 641.0 

Pennon Group . . . . . . .696.0 1.0 796.0 598.0 

Severn Trent . . . . . . . .2090.0 13.0 2099.4 1513.0 

United Utilities . . . . . . .762.5 2.0 763.5 617.5 

Rexam . . . . . . . . . . . . . .537.5 2.0 547.5 394.3 

RPC Group . . . . . . . . . . .401.9 -2.1 477.0 351.0 

Smith (DS) . . . . . . . . . .254.0 5.7 254.3 133.2 

Smiths Group . . . . . . . .1315.0 2.0 1328.0 979.5 

Vesuvius . . . . . . . . . . . .363.1 -10.2 679.0 322.1 

Brown (N.) Group . . . . .447.3 -1.3 451.0 224.4 

Carpetright . . . . . . . . . .634.5 9.0 728.5 585.0 

Debenhams . . . . . . . . . .93.2 1.6 123.7 71.9 

Dignity . . . . . . . . . . . . .1431.0 -2.0 1462.0 803.5 


Fenner . . . . . . . . . . . . .366.0 0.0 435.2 329.3 

IMI . . . . . . . . . . . . . . . .1326.0 1.0 1347.0 776.0 

Melrose Industrie . . . . .252.5 -2.1 277.1 201.8 

Rotork . . . . . . . . . . . . .2883.0 -52.0 3037.0 1859.0 

Spirax-Sarco Engi . . . .2812.0 -10.0 2838.0 1900.0 

Weir Group . . . . . . . . .2415.0 -30.0 2474.0 1397.0 

Evraz . . . . . . . . . . . . . . . .159.1 -4.4 328.2 148.8 

Ferrexpo . . . . . . . . . . . .183.5 -4.6 293.3 147.5 

BBA Aviation . . . . . . . . .272.5 2.6 273.1 178.0 

Admiral Group . . . . . . .1283.0 8.0 1374.0 1019.0 

Amlin . . . . . . . . . . . . . .434.0 4.7 435.3 312.9 

Beazley . . . . . . . . . . . . .233.3 3.3 233.7 132.5 

Catlin Group Ltd. . . . . . .539.0 -2.0 545.6 399.0 

Direct Line Insur . . . . . .205.1 1.7 225.0 186.5 

Hiscox Ltd . . . . . . . . . . .570.0 -5.0 630.3 422.8 

Jardine Lloyd Tho . . . . .914.5 0.5 917.0 659.0 

Lancashire Holdin . . . . .819.0 -4.0 925.5 737.0 

RSA Insurance Gro . . . . .113.5 0.4 136.3 97.7 

Aviva . . . . . . . . . . . . . . .323.1 -0.5 388.4 255.3 

Rightmove . . . . . . . . .2019.0 12.0 2023.0 1421.0 

STV Group . . . . . . . . . . .134.5 3.5 146.9 81.5 

Tarsus Group . . . . . . . . .232.5 0.1 236.0 145.0 

Trinity Mirror . . . . . . . . . .92.8 1.3 121.3 25.5 

UBM . . . . . . . . . . . . . . . .733.0 -4.5 788.0 511.0 

UTV Media . . . . . . . . . . .163.6 -4.4 168.0 115.5 

Wilmington Group . . . .158.8 2.3 164.0 82.0 

WPP . . . . . . . . . . . . . . .1156.0 9.0 1157.0 743.0 

African Barrick G . . . . . .139.2 -0.4 492.0 136.5 

Anglo American . . . . .1544.0 -6.0 2215.0 1525.0 

Antofagasta . . . . . . . . .919.0 -20.5 1381.0 884.0 

BHP Billiton . . . . . . . . .1905.0 -15.0 2236.0 1681.0 

Bumi . . . . . . . . . . . . . . .259.3 0.0 545.0 147.1 

Centamin (DI) . . . . . . . . .39.1 2.8 107.3 27.7 

Eurasian Natural . . . . .298.7 1.7 482.1 224.6 

Fresnillo . . . . . . . . . . . .1120.0 -3.0 1993.0 1074.0 

Glencore Xstrata . . . . . .333.8 -6.6 397.9 293.6 

Hochschild Mining . . . . .259.1 5.4 520.0 230.0 

Kazakhmys . . . . . . . . . .351.9 -15.9 826.0 310.1 

Kenmare Resources . . . .29.0 -0.5 47.6 26.1 

Lonmin . . . . . . . . . . . . .268.1 3.0 428.2 240.8 

New World Resourc . . .128.2 -6.6 358.0 127.6 

Petra Diamonds Lt . . . .104.5 0.0 136.5 97.0 

Petropavlovsk . . . . . . . .135.4 -5.9 494.5 134.0 

Polymetal Interna . . . .654.5 -57.5 1219.0 652.5 

Legal & General G . . . . .186.3 3.7 187.0 106.0 

Old Mutual . . . . . . . . . . .221.0 1.5 222.5 138.7 

Phoenix Group Hol . . . .646.5 6.5 686.0 395.1 

Prudential . . . . . . . . . . .1181.0 18.0 1194.0 660.0 

Resolution Ltd. . . . . . . .285.0 7.8 285.8 190.3 

St James's Place . . . . . .605.5 8.0 605.5 303.4 

Standard Life . . . . . . . . .411.5 6.7 412.0 201.5 

4Imprint Group . . . . . .503.0 3.0 512.0 260.0 

Bloomsbury Publis . . . .116.5 0.3 146.5 102.0 

British Sky Broad . . . . .826.0 3.0 899.5 656.0 

Centaur Media . . . . . . . . .34.1 -12.9 60.0 28.5 

Chime Communicati . .260.0 3.0 269.3 143.0 

Creston . . . . . . . . . . . . . .87.0 0.5 93.5 52.0 

Euromoney Institu . . .1030.0 17.0 1030.0 672.5 

Future . . . . . . . . . . . . . . . .16.1 -0.4 21.4 9.5 

Haynes Publishing . . . .167.0 0.0 200.0 157.0 

Hibu . . . . . . . . . . . . . . . . .0.4 0.0 3.2 0.3 

Huntsworth . . . . . . . . . .58.0 0.3 61.0 37.0 

Informa . . . . . . . . . . . . .504.5 -0.5 537.0 340.0 

ITE Group . . . . . . . . . . . .291.4 -1.9 297.0 180.0 

ITV . . . . . . . . . . . . . . . . .129.2 -2.5 132.3 69.5 

Johnston Press . . . . . . . .18.3 0.4 19.0 4.9 

Mecom Group . . . . . . . . .42.0 -0.3 151.8 40.0 

Moneysupermarket. . . .214.5 5.0 215.7 109.3 

Pearson . . . . . . . . . . . .1206.0 11.0 1294.0 1115.0 

Perform Group . . . . . . .560.0 10.5 573.0 308.5 

Reed Elsevier . . . . . . . .764.5 6.0 795.5 469.4 

Randgold Resource . .4800.0-189.0 7775.0 4545.0 

Rio Tinto . . . . . . . . . . .2914.0 -53.5 3757.0 2715.5 

Vedanta Resources . . .1253.0 -1.0 1299.0 832.5 

Inmarsat . . . . . . . . . . . .670.0 -30.0 749.0 390.8 

Vodafone Group . . . . . .195.2 1.7 197.2 154.5 

Genesis Emerging . . . .583.0 4.0 605.0 453.9 

Afren . . . . . . . . . . . . . . .134.2 -3.3 156.1 94.0 

BG Group . . . . . . . . . . .1222.5 -4.5 1350.5 1000.5 

BP . . . . . . . . . . . . . . . . .467.6 -1.0 475.9 392.0 

Cairn Energy . . . . . . . . .276.3 0.2 309.4 248.2 

EnQuest . . . . . . . . . . . . .132.3 -0.7 143.8 104.7 

Essar Energy . . . . . . . . .143.1 -0.3 153.3 99.1 

Heritage Oil . . . . . . . . . .134.1 1.4 218.8 115.1 

Ophir Energy . . . . . . . . .393.2 -4.7 554.3 387.4 

Premier Oil . . . . . . . . . .379.5 -13.8 401.2 321.3 

Royal Dutch Shell . . . .2226.5 -55.0 2309.5 1970.5 

Royal Dutch Shell . . . .2300.5 -55.0 2366.5 2039.0 

Salamander Energy . . . .188.1 -5.1 218.1 157.5 

Soco Internationa . . . . .390.4 -0.1 404.3 264.2 

Tullow Oil . . . . . . . . . .1043.0 4.0 1531.0 977.0 

Amec . . . . . . . . . . . . . .1065.0 -10.0 1172.0 923.0 

Hunting . . . . . . . . . . . .860.0 3.5 941.0 688.0 

Kentz Corporation . . . .400.0 4.0 441.0 325.0 

Petrofac Ltd. . . . . . . . .1362.0 -20.0 1737.0 1266.0 

Wood Group (John) . . .801.5 -25.0 879.5 651.5 

Burberry Group . . . . . .1423.0 29.0 1455.0 1000.0 

PZ Cussons . . . . . . . . . . .381.4 -7.7 415.6 297.2 

Supergroup . . . . . . . . . .758.5 21.0 760.0 264.5 

AstraZeneca . . . . . . . . .3374.5 32.0 3390.0 2591.0 

BTG . . . . . . . . . . . . . . . .354.0 7.4 423.0 300.3 

Dechra Pharmaceut . . .701.0 -3.5 780.0 460.0 

Genus . . . . . . . . . . . . . .1417.0 10.0 1594.0 1131.0 

GlaxoSmithKline . . . . . .1717.5 22.5 1720.5 1317.5 

Hikma Pharmaceuti . . .991.0 19.0 1041.0 612.5 

Shire Plc . . . . . . . . . . .2040.0 -15.0 2153.0 1727.0 

Capital & Countie . . . . . .334.1 0.6 334.3 188.7 

Daejan Holdings . . . .4050.0 20.0 4080.0 2500.0 

F&C Commercial Pr . . . .107.2 -0.1 107.8 100.2 

Grainger . . . . . . . . . . . .154.4 4.5 154.4 83.1 

LondonMetric Prop . . . .117.0 0.0 121.4 101.8 

Savills . . . . . . . . . . . . . .600.0 18.0 605.3 300.8 

St. Modwen Proper . . . .329.1 21.8 329.1 145.5 

UK Commercial Pro . . . . .72.7 0.2 74.6 64.3 

Unite Group . . . . . . . . . .387.5 12.2 387.5 180.3 

Big Yellow Group . . . . .426.7 1.9 429.8 274.5 

British Land Co . . . . . . .634.0 14.0 635.5 475.4 

Derwent London . . . .2504.0 50.0 2504.0 1708.0 

Great Portland Es . . . . .590.5 18.5 592.5 367.8 

Hammerson . . . . . . . . .554.0 3.0 556.5 409.2 

Hansteen Holdings . . . . .89.7 0.7 89.9 70.0 

Intu Properties . . . . . . .356.9 3.4 366.0 305.0 

Land Securities G . . . . .985.0 50.5 991.0 704.0 

SEGRO . . . . . . . . . . . . . .295.6 6.9 296.0 209.4 

Shaftesbury . . . . . . . . .657.0 18.5 657.0 492.0 

Workspace Group . . . . .395.0 4.3 397.0 215.5 

Anite . . . . . . . . . . . . . . . .127.5 -0.5 162.0 111.0 

Aveva Group . . . . . . . .2285.0 20.0 2322.0 1469.0 

Computacenter . . . . . .442.0 -11.9 567.0 292.4 

Fidessa Group . . . . . . .1922.0 -3.0 1970.0 1275.0 

Invensys . . . . . . . . . . . .394.2 2.1 399.7 198.9 

Micro Focus Inter . . . . .676.5 -5.0 706.0 431.5 

Playtech . . . . . . . . . . . .663.0 1.0 664.5 324.8 

Sage Group . . . . . . . . . .352.2 -4.8 357.0 247.7 

SDL . . . . . . . . . . . . . . . . .351.2 -5.7 700.0 348.0 

Telecity Group . . . . . . .950.0 0.0 969.5 756.5 

Aggreko . . . . . . . . . . . .1750.0 -18.0 2400.0 1557.0 

Ashtead Group . . . . . . .632.5 19.0 636.5 212.2 

Atkins (WS) . . . . . . . . .889.0 13.5 940.0 628.5 

Babcock Internati . . . .1149.0 -14.0 1166.0 827.0 

Berendsen . . . . . . . . . .768.0 4.0 812.0 462.0 

Bunzl . . . . . . . . . . . . . .1329.0 10.0 1334.0 990.0 

Capita . . . . . . . . . . . . . .947.5 9.5 949.0 602.0 

Carillion . . . . . . . . . . . . .255.0 -14.0 331.8 235.5 

De La Rue . . . . . . . . . . .962.0 0.5 1075.0 891.5 

Diploma . . . . . . . . . . . . .571.5 -8.5 627.5 417.0 

Electrocomponents . . .264.0 0.9 265.1 195.2 

Experian . . . . . . . . . . . .1267.0 5.0 1279.0 870.0 

Filtrona PLC . . . . . . . . . .742.0 -3.0 750.0 428.0 

G4S . . . . . . . . . . . . . . . .250.0 -8.9 313.5 240.0 

Hays . . . . . . . . . . . . . . . .96.0 0.2 101.2 66.4 

Homeserve . . . . . . . . . .216.3 1.3 248.0 137.5 

Howden Joinery Gr . . . .247.1 1.3 254.5 109.9 

Interserve . . . . . . . . . . .507.5 9.3 510.5 271.4 

Intertek Group . . . . . .3453.0 41.0 3471.0 2456.0 

Menzies(John) . . . . . . .801.0 1.5 814.5 542.0 

Michael Page Inte . . . . .393.6 0.8 451.8 341.4 

Mitie Group . . . . . . . . . .271.9 1.9 300.8 253.9 

PayPoint . . . . . . . . . . . .888.5 39.0 912.5 605.0 

Premier Farnell . . . . . .226.0 -1.6 236.3 153.2 

Regus . . . . . . . . . . . . . . .175.4 -1.3 177.5 82.7 

Rentokil Initial . . . . . . . .94.3 0.8 100.7 69.4 

RPS Group . . . . . . . . . . .237.3 3.2 274.2 197.0 

Serco Group . . . . . . . . . .631.5 -0.5 635.5 509.5 

SIG . . . . . . . . . . . . . . . . .172.6 2.1 173.2 82.3 

Travis Perkins . . . . . . .1483.0 41.0 1511.0 906.5 

Wolseley . . . . . . . . . . .3379.0 9.0 3383.0 2121.3 

ARM Holdings . . . . . . .1097.0 21.0 1099.6 469.0 

CSR . . . . . . . . . . . . . . . .549.0 6.0 550.0 200.3 

Imagination Techn . . . .316.8 4.2 624.0 296.0 

Pace . . . . . . . . . . . . . . . .267.4 4.1 267.9 81.5 

Spirent Communica . . .136.3 -0.2 170.9 122.0 

British American . . . .3757.0 10.5 3779.5 2991.0 

Imperial Tobacco . . . .2290.0 2.0 2595.0 2239.0 

888 Holdings . . . . . . . . .179.0 -2.7 186.0 63.0 

Betfair Group . . . . . . . .845.0 -20.0 898.0 650.0 

Bwin.party Digita . . . . .143.2 -1.2 156.0 91.9 

Carnival . . . . . . . . . . . .2389.0 7.0 2628.0 1969.0 

Compass Group . . . . . .878.0 8.0 897.0 616.0 

Domino's Pizza Gr . . . .675.0 18.0 681.5 438.0 

easyJet . . . . . . . . . . . .1224.0 94.0 1228.0 481.2 

Enterprise Inns . . . . . . . .111.4 12.4 114.7 55.5 

FirstGroup . . . . . . . . . . .222.7 1.9 260.5 175.7 

Go-Ahead Group . . . . .1538.0 16.0 1558.0 1086.0 

Greene King . . . . . . . . .756.0 6.5 756.1 474.3 

InterContinental . . . . .1954.0 -12.0 2039.0 1397.0 

International Con . . . . .269.0 -1.3 281.9 137.1 

Ladbrokes . . . . . . . . . . . .211.3 1.4 243.1 152.7 

Marston's . . . . . . . . . . . .152.4 1.6 152.4 94.4 

Millennium & Copt . . . . .551.5 -4.0 582.5 455.4 

Mitchells & Butle . . . . . .377.2 1.8 377.4 217.4 

National Express . . . . . .211.5 -1.3 230.5 164.5 

Rank Group . . . . . . . . . .157.8 0.8 177.5 115.0 

Restaurant Group . . . . .519.0 33.1 520.0 275.9 

Stagecoach Group . . . . .313.0 0.0 319.6 230.4 

Thomas Cook Group . . .144.7 4.1 145.7 14.3 

TUI Travel . . . . . . . . . . . .355.4 8.2 356.8 158.0 

Wetherspoon (J.D. . . . .640.0 17.5 640.0 373.5 

Whitbread . . . . . . . . . .2701.0 -9.0 2710.0 1786.0 

William Hill . . . . . . . . . .435.9 6.5 437.2 245.7 

Abcam . . . . . . . . . . . . . .455.5 1.5 473.8 355.0 

Advanced Computer . . .86.5 0.5 94.4 50.0 

Advanced Medical . . . . .79.0 1.0 80.5 54.0 

Amerisur Resource . . . . .51.5 0.8 58.0 17.3 

Andor Technology . . . .366.5 0.5 580.5 305.0 

Archipelago Resou . . . . .51.0 0.9 67.0 47.3 

ASOS . . . . . . . . . . . . . .3732.0 9.0 3798.0 1485.0 

Avanti Communicat . . .298.8 5.8 419.0 215.3 

Blinkx . . . . . . . . . . . . . .109.0 -5.8 116.3 33.5 

BowLeven . . . . . . . . . . . .71.8 -0.3 100.0 53.5 

Brooks Macdonald . . .1470.0 35.0 1500.0 1135.0 

Clinigen Group . . . . . . .277.0 0.0 312.0 176.0 

Daisy Group . . . . . . . . . .126.0 3.5 130.0 85.0 

Dart Group . . . . . . . . . . .182.5 -2.0 188.0 63.0 

Eland Oil & Gas . . . . . . .129.0 0.8 130.0 106.0 

EMIS Group . . . . . . . . . .735.5 -4.5 955.0 530.0 

Faroe Petroleum . . . . . .110.3 1.8 164.5 107.0 

Hargreaves Servic . . . . .851.0 30.5 1190.0 551.0 

Healthcare Locums . . . . .0.8 0.0 0.8 0.7 

IDOX . . . . . . . . . . . . . . . . .52.5 1.3 59.5 31.3 

IGas Energy . . . . . . . . . .83.0 1.3 150.8 62.5 

Impellam Group . . . . . .387.5 0.0 457.5 300.0 

Iofina . . . . . . . . . . . . . . .223.5 -10.5 241.3 33.0 

Iomart Group . . . . . . . .245.0 1.0 245.0 121.0 

James Halstead . . . . . .280.0 -12.5 334.5 247.5 

London Mining . . . . . . .116.0 -3.0 263.5 102.8 

M&C Saatchi . . . . . . . . .265.5 11.5 272.0 131.5 

M. P. Evans Group . . . . .515.0 10.0 553.8 455.0 

Majestic Wine . . . . . . . .407.0 3.5 489.5 397.0 

May Gurney Integr . . . .299.3 -1.5 302.0 99.0 

Monitise . . . . . . . . . . . . .42.3 3.5 42.3 25.5 

Mulberry Group . . . . . .908.5 9.5 2220.0 885.0 

Nanoco Group . . . . . . . .160.0 -3.0 199.0 51.0 

Nichols . . . . . . . . . . . . .950.0 0.0 970.0 680.0 

Numis Corporation . . . .151.0 -1.0 160.0 81.5 

Oxford Catalysts . . . . . .147.9 -0.6 195.0 45.5 

Pan African Resou . . . . .16.0 1.0 21.0 12.9 

Plexus Holdings . . . . . .214.0 0.5 289.0 106.0 

Prezzo . . . . . . . . . . . . . . .115.9 4.9 118.0 63.0 

Quindell Portfoli . . . . . . . .9.7 0.7 17.5 5.1 

Rockhopper Explor . . . .138.5 -0.5 303.3 131.0 

RWS Holdings . . . . . . . .670.0 15.0 670.0 465.0 

Secure Trust Bank . . . .1800.0 0.0 1905.0 897.5 

Sirius Minerals . . . . . . . .25.5 0.8 29.3 13.0 

Smart Metering Sy . . . . .311.0 38.5 319.0 135.5 

Songbird Estates . . . . . .147.0 2.0 150.0 100.0 

Thorpe (F.W.) . . . . . . . .1170.0 -45.0 1287.5 920.0 

Tyman . . . . . . . . . . . . . .219.5 12.0 219.8 123.5 

Young & Co's Brew . . . .780.0 0.0 805.0 601.5 

Enterprise Inns . . . . . . . . . . . . . . .111.4 12.5 

easyJet . . . . . . . . . . . . . . . . . . .1224.0 8.3 

Keller Group . . . . . . . . . . . . . . . .934.0 7.7 

Centamin (DI) . . . . . . . . . . . . . . . .39.1 7.6 

St. Modwen Propert . . . . . . . . . .329.1 7.1 

Restaurant Group . . . . . . . . . . . .519.0 6.8 

Barratt Developmen . . . . . . . . . .329.1 5.7 

Land Securities Gr . . . . . . . . . . .985.0 5.4 

London Stock Excha . . . . . . . . .1406.0 5.3 

PayPoint . . . . . . . . . . . . . . . . . . .888.5 4.6 

Polymetal Internat . . . . . . . . . .654.5 -8.1 

Carillion . . . . . . . . . . . . . . . . . . .255.0 -5.2 

New World Resource . . . . . . . . .128.2 -4.9 

Kazakhmys . . . . . . . . . . . . . . . . .351.9 -4.3 

Inmarsat . . . . . . . . . . . . . . . . . . .670.0 -4.3 

Petropavlovsk . . . . . . . . . . . . . . .135.4 -4.2 

Randgold Resources . . . . . . . .4800.0 -3.8 

Premier Oil . . . . . . . . . . . . . . . . .379.5 -3.5 

G4S . . . . . . . . . . . . . . . . . . . . . . .250.0 -3.4 

Sainsbury (J) . . . . . . . . . . . . . . . .377.3 -3.3 

Risers Fallers 

MAIN CHANGES UK 350 

Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low 

Price Chg High Low Price Chg High Low 

GILTS 

http://corporate.webfg.com 

mailto: 

globaltechsales@webfg.com 

% % 

AUTOMOBILES & PARTS 

AEROSPACE & DEFENCE 

BANKS 

BEVERAGES 

CHEMICALS 

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 INDUSTRIALS 

HEALTH CARE EQUIPMETN & S. 

HHOLD GDS & HOME CONSTR. 

INDUSTRIAL ENGINEERING 

INDUSTRIAL TRANSPORTATION 

NON LIFE INSURANCE 

MEDIA 

MINING 

MOBILE TELECOMS 

NON EQUITY INVESTM. COMM. 

OIL & GAS PRODUCERS 

OIL EQUIPMENT & SERVICES 

PERSONAL GOODS 

PHARMACEUTICALS & BIOTECH 

REAL ESTATE INVEST. & SERV. 

REAL ESTATE INVEST. TRUSTS 

SUPPORT SERVICES 

TECHNOLOGY HARDW. & EQUIP. 

TOBACCO 

TRAVEL & LEISURE 

AIM 50 

FTSE 100 

6693.55 

7.49 

FTSE 250 

14476.01 

98.32 

FTSE ALL SHARE 

3526.54 

7.00 

DOW 

15275.69 

60.44 

NASDAQ 

3471.62 

9.01 

S&P 500 

1658.78 

8.44 

Tsy 2.500 13 . . . . . . .278.16 -0.07 283.6 277.8 

Tsy 8.000 13 . . . . . . .102.81 -0.03 110.4 102.7 

Tsy 5.000 14 . . . . . . .106.13 -0.04 110.8 106.1 

Tsy 8.000 15 . . . . . . .119.58 -0.08 126.8 119.5 

Tsy 4.750 15 . . . . . . .110.16 -0.06 114.5 110.1 

Tsy 4.000 16 . . . . . . .111.49 -0.08 115.0 111.4 

Tsy 2.500 16 . . . . . .348.47 -0.09 353.9 341.4 

Tsy 1.250 17 . . . . . . .116.20 -0.15 119.3 113.3 

Tsy 8.750 17 . . . . . . .133.88 -0.11 141.4 133.8 

Tsy 12.000 17 . . . . . .106.66 1.87 118.1 105.0 

Tsy 5.000 18 . . . . . . .119.51 -0.12 124.1 119.2 

Tsy 4.500 19 . . . . . . .119.19 -0.10 123.7 118.1 

Tsy 3.750 19 . . . . . . .115.43 -0.14 119.2 114.0 

Tsy 4.750 20 . . . . . . .122.21 -0.15 126.9 112.3 

Tsy 2.500 20 . . . . . .383.77 -0.20 393.1 365.7 

Tsy 8.000 21 . . . . . .148.53 -0.19 156.6 147.0 

Tsy 1.875 22 . . . . . . .131.69 -0.30 136.5 125.4 

Tsy 4.000 22 . . . . . . .118.11 -0.20 122.8 116.0 

Tsy 2.500 24 . . . . . .350.69 -0.36 363.8 330.4 

Tsy 5.000 25 . . . . . .129.20 -0.27 135.9 126.5 

Tsy 1.250 27 . . . . . . .128.37 -0.52 134.7 120.4 

Tsy 4.250 27 . . . . . . .121.08 -0.31 128.0 117.5 

Tsy 6.000 28 . . . . . .144.60 -0.32 153.7 140.6 

Tsy 4.125 30 . . . . . . .330.97 -0.66 347.4 306.9 

Tsy 4.750 30 . . . . . .128.03 -0.35 135.8 123.6 

Tsy 4.250 32 . . . . . .120.65 -0.36 127.8 116.2 

Tsy 4.250 36 . . . . . . .119.88 -0.36 127.2 115.0 

Tsy 4.750 38 . . . . . .128.90 -0.36 137.2 123.8 

Tsy 4.500 42 . . . . . .124.37 -0.33 133.6 119.3 

INDUSTRIAL METALS & MINING 

GENERAL RETAILERS 

LIFE INSURANCE 

SOFTWARE & COMPUTER SERV. 

For more on MT4, visit alpari.co.uk 

MT4 plus the reassurance 

of a global forex broker 

Leveraged products are high risk and losses may exceed deposits. 

Proud title sponsor of the 

Alpari World Match Racing Tour

20 

THEFORUM 

THE Bermuda Triangle has long 

captured the imagination of 

millions, not least my own. But 

now the global economy 

appears to have developed its 

own black hole, and this time it’s not 

just a legend. This economic triangle is 

a place where rationality is replaced by 

hope and superstition, and by pundits 

pretending to understand the real 

drivers of the economy. And the result? 

We see the sorts of figures announced 

yesterday: the Eurozone is now in its 

longest recession since the euro was 

launched in 1999. 

This economic triangle runs from 

record stock market valuations to high 

unemployment, from low growth to 

stagnant productivity. And just like the 

real triangle, there is plenty of scientific 

evidence to explain most, if not everything, 

driving the current situation. 

The black hole is modern monetary 

theory. This involves printing and 

spending money, then waiting and 

praying for better weather. It’s happening 

in a variety of forms across the 

world. But everywhere modern monetary 

theory is getting harder and hard- 

Agree? Disagree? Got a sharp comment? 

The Forum wants you to join the debate. 

THE end is in sight for the era of 

too-big-to-fail. Earlier this week, 

George Osborne and the other 

EU finance ministers met to 

discuss the Resolution and 

Recovery Directive (RRD) – the key to 

ensuring that banks will never again 

have to be bailed out by the taxpayer, 

and a measure which the banks have 

thrown their full weight behind. RRD 

will give the regulator the power to 

step in and take over a bank if it stops 

being financially viable. 

The centrepiece is bail-in, a new tool 

to ensure that shareholders and creditors 

– not taxpayers – bear the cost if a 

bank fails. And because taxpayers will 

not bear the cost, the link between 

banks and their host country’s financial 

health will be broken, reducing the 


The stock is market 

rising, but the winners 

are only big companies 

and the top 10 per cent 

Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com 

‘ 

cityam.com/forum 

Only structural reforms not more 

liquidity can rescue the Eurozone 

STEEN JAKOBSEN 

er to justify – if for no other reason than 

because the constant reminder that we 

are in a crisis makes investors reluctant 

to commit to any investment beyond 

the next quarter. 

In today’s economy, unemployment is 

reaching record highs (19m in the 

Eurozone are now out of work), disposable 

income continues to fall, growth is 

ever lower, tax revenues come up short, 

and productivity growth and innovation 

have taken a back seat. The problem 

is that the idea behind printing 

money and hoping it will be spent is 

based on a historical relationship 

known as the wealth effect; previously 

when the stock market went up, sentiment 

also rose and spending and 

investment mirrored the move. 

But today, while the stock market is 

ANTHONY BROWNE 

In association with 

chance of another sovereign debt crisis. 

It will also mean that investors – particularly 

big, sophisticated investors 

like hedge funds and pension funds – 

will have to take more responsibility for 

the health and conduct of their banks. 

And the management, if they want to 

borrow cheaply, will have to make sure 

their bank is a safe one to lend to. 

Moreover, bail-in will ensure a failed 

bank can continue to offer the critical 

clearly on an upward trajectory, not 

everyone is benefiting from the rise. 

Stock ownership almost exclusively centres 

on the top 10 per cent of the population, 

and the social divide is much 

higher than before the crisis. Further, 

85 per cent of jobs and growth come 

from small and medium-sized enterprises 

(SMEs) – meaning that while the 

top 15 per cent of listed stocks are benefiting 

from the equity market boom, 

growth-driving SMEs are not. Global 

monetary policy is boosting the largest 

beasts in the corporate world and the 

richest 10 per cent who own stock. The 

Fed and the Bank of Japan may talk 

about the wealth effect, but what they 

really mean is the elite effect. Their 

premise is flawed. 

However, this experiment may be in 

its final phase and the gloom could be 

coming to a end. Policymakers are realising 

that the growth they expected is 

unlikely to materialise. We are therefore 

seeing increased currency manipulation 

(always the last stage of macro 

policies). But we’re also seeing the previously 

close political relationship in 

Brussels between Germany and France 

functions that businesses and households 

need – like working ATMs and 

direct debit facilities. It will also reduce 

the chance of contagion as the resolution 

process happens much faster than 

bankruptcy, preserving rather than 

destroying much of the value of creditors’ 

investments. 

RRD builds upon a raft of measures 

to fix too-big-to-fail. For example, banks 

are fast increasing their capital and liquidity. 

UK banks already hold three 

times as much of the safest form of capital 

as before the crisis. In fact, the 

main UK banks alone have already 

increased their capital by £165bn since 

2008, and are now among the best capitalised 

in the world. On top of this, all 

customer deposits up to £85,000 are 

now 100 per cent guaranteed by an 

becoming strained. The EU’s North 

South divide is now bigger than it ever 

has been. 

The problem is that only failure will 

create a mandate for change – or even 

for small reforms. So far, real reforms in 

Europe have been few and far between, 

and austerity drags on. Real change 

could happen once the German elec- 

tions in September are over. Chancellor 

Angela Merkel will likely win, but probably 

lose the broader war. There is an 

increasing expectation that she will 

step up to the challenge of saving 

Europe, but these hopes will likely be 

dashed. She cannot afford this. Bailing 

out other countries would hurt 

Germany’s credit rating, while current 

industry-funded scheme. Combined, 

these measures should make the banking 

system more stable, make depositors’ 

savings safer, and reduce moral 

hazard – ensuring those responsible 

for risks pay the costs when they go 

wrong. 

But the ministers are also close to creating 

a new moral hazard. There was 

broad support – though not from the 

UK – for a pre-funded “resolution fund” 

that risks undermining much of the 

progress so far. Depending what the 

fund is used for, a pre-funded “resolution 

fund” could provide banks with a 

pot of money that will be used to bail 

them out, meaning banks and their 

investors will not have to take as much 

responsibility for their risks because 

they can simply turn to the fund. 

European policies will damage the 

country’s exports and growth over the 

long term. Merkel will likely fail to reconcile 

these two problems, and 

Germany will not be the saviour of 

Europe. 

Each country in Europe must realise 

that their recovery comes from their 

own political willingness to reform. 

Unless we get a wake-up call in the 

form of a more severe crisis, then 

Europe is destined to repeat Japan’s 

mistake of an aggressive monetary policy 

resulting in a structurally weaker 

currency. 

The good news, however, is that 

things can only improve. As we enter 

the next phase of this global slowdown, 

politicians must test their wrong premises 

and face the fact that growth is not 

around the corner. This summer, the 

Federal Reserve, the Bank of England, 

the Bank of Japan, and the European 

Central Bank will have to go back to 

their drawing boards. What the world 

is short on is innovation, appetite and 

risk, not liquidity. 

Steen Jakobsen is chief economist at Saxo 

Bank. 

Top responses will be reprinted in The Forum. 

Too big to fail is nearly over but regulators must avoid new moral hazards 

The proposed fund – which will be 

around €10bn (£8.4bn) in the UK – also 

pales into insignificance compared to 

the €1.1 trillion total of bail-in-able debt 

across the EU. This is a loss absorbing 

capacity 10 to 15 larger than the resolution 

fund. 

The banks are committed to making 

sure they are not again bailed out by 

the taxpayer. But the disorderly collapse 

of banking in Cyprus shows what 

happens if we don’t get bank resolution 

right. There is much to welcome in 

the new RRD package, but legislators 

should be aware that the unintended 

negative consequences of the proposed 

resolution fund might be to undermine 

much of the rest of the reforms. 

Anthony Browne is chief executive of the 

British Bankers’ Association. 

ST ANDRE 

Win the ultimate golf break for two – stay at the 5* Fairmont St Andrews and play on one of

EU referendum 

[Re: Cameron needs to lead on the EU to 

open Labour splits, yesterday] 

Turning the question of an EU referendum 

into a party political game is exactly why 

more and more people have had enough of 

all three major parties. This row over Europe 

is just more water to Ukip’s mill. For us 

voters, this is not a game of who remains in 

power or who will win a Parliamentary vote. 

It affects our lives – Europe influences 

everything from rubbish collection to council 

tax. It’s strange that, even after May’s local 

elections, the party leaders still don’t get it. 

David Evans 

Andrew Lilico is right. MPs are split on the 

EU. That’s why a referendum is the answer. 

Michelle Brewster 

Independent Scots 

[Re: An independent Scotland could be a 

testing ground for monetary theory, 

yesterday] 

Paul Ormerod’s caricacture of the SNP’s 

policies gets about everything wrong. An 

independent Scotland would receive its 

geographical share of North Sea oil and gas, 

public spending per capita is higher in 

Northern Ireland, and the EU will not offer 

an opinion on Scotland’s position after a yes 

vote unless Westminster asks for one. Also, 

Ireland had monetary union with the UK for 

nearly 60 years, before breaking the tie and 

then joining the euro. Some of Ireland’s 

monetary policies were more successful 

than others. But as an independent nation, it 

was able to choose. 

John Caskie, Glasgow 


As Boris Johnson proposes giving the capital 

more control over taxes, who would benefit? 

Alex Jan 

LONDON 

For London to fuel its growth and succeed internationally, it needs 

far greater control over its own financial destiny. Only 7 per cent of 

taxes raised in London are truly local. The figure for New York is 

seven times higher. Fiscal devolution would create a virtuous circle of 

incentives to boost economic growth and accountability. Tax 

competition between authorities will help to ensure efficiency. 

London’s revenues would rise and fall with the fortunes of the city, 

making growth to sustain revenues a top priority. With London’s 

population heading for 10m by 2030, the case for change in how the 

city secures its future infrastructure investment is more urgent than 

at any time since the war. With a globally competitive and dynamic 

economy, London is the engine-room of UK growth. After decades of 

micro-management, its leaders are asking to take control of the 

city’s destiny. Ministers should heed that call. 

Alex Jan is head of transport, strategy and economics at Arup. 

WE WANT TO HEAR YOUR VIEWS 

E: theforum@cityam.com | Comment: cityam.com/forum | @cityamforum 

LETTERS to the editor 

4th Floor, 33 Queen Street, 

London, EC4R 1BR 

Tel: 020 3201 8900 

Fax: 020 7248 2711 

Email: news@cityam.com 

BEST OF TWITTER 

Bank of England governor Sir Mervyn King 

declares UK recovery in sight. Question is: 

how strong are his glasses? 

@GCGodfrey 

A cautiously optimistic final statement from 

Sir Mervyn King, and the first inflation report 

since 2007 to paint a brighter future. 

@bill_nxn_maven 

Asked whether France is the new sick man of 

Europe, Francois Holland replies: “Are our 

German neighbours in better shape?” 

@LondonerVince 

Nick Clegg says EU referendum is a question 

of “when, not if” because of changes in the 

Eurozone. A sense of inevitability. 

@AndrewLilico 

ALL 

REGIONS 

Tom Papworth 

The London Finance Commission suggests London be given a 

greater say over its taxes. Good. Any reform that brings taxation and 

spending closer to the electorate is welcome. But why limit this to 

the capital? UK local authorities raise just a fraction of the money 

they spend: most of it comes from central government. This makes 

Westminster the organ grinder. Meanwhile, small commitments to 

spending have apparently large impacts on council tax. Far more tax 

raising should be localised and local authorities should be free to 

experiment with different ways of raising revenue. Beyond finance, 

we should do away with statutory duties and land use restrictions 

that constrain local government. If we are to allow and encourage 

communities across the UK to grow, we should free them from 

Westminster diktat, require them to raise their own funds and 

encourage them to innovate and grow their tax bases. 

Tom Papworth is an associate director at CentreForum. 

Why the Bank will 

struggle to keep to 

its inflation target 

THERE is one thing that can be 

guaranteed whenever the 

Bank of England releases its 

quarterly Inflation Report – in 

two years’ time, its central 

projection for consumer price index 

inflation is at or very close to the 2 

per cent target. Yesterday’s report was 

consistent with this tradition. 

Inflation is expected to rise to 3 per 

cent or so in the short term. But by 

2015, it is forecast to be back around 

2 per cent. 

Recent experience, however, does 

not inspire much confidence that 

this will be the case. Since the onset of 

the financial crisis, the only time 

when UK inflation was close to the 2 

per cent target was when it was artificially 

suppressed by a cut in the VAT 

rate to 15 per cent in 2009. Otherwise, 

it has been persistently above target, 

rising to over 5 per cent in 2008 and 

2011, and averaging over 3 per cent. 

There have been three main reasons 

for this persistent above-target inflation. 

First, surges in energy and commodity 

prices – including the price of 

oil – have pushed up the cost of 

imports. Second, the decline in the 

value of the pound has added to these 

imported inflationary pressures. And 

third, services inflation has remained 

stubbornly high – averaging close to 4 

per cent in the past five years. 

The Monetary Policy Committee’s 

(MPC) latest forecast of inflation coming 

back to the 2 per cent target 

requires all these sources of above-target 

inflation to subside. This seems 

quite unlikely. 

First, the Bank of England forecast 

assumes that the world economy 

picks up over the next two years. 

When the world economy picked up 

in 2003-4, 2006-7 and in 2010, 

stronger growth was followed by a 

surge in energy and commodity 

prices. With strong growth expected 

to continue in resource-hungry 

Editorial Editor Allister Heath | Deputy Editor David Hellier | Managing Editor Marc Sidwell 

News Editor Elizabeth Fournier | Business Features Editor Tom Welsh | Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres 

Creative Director Gavin Billenness 

Commercial Sales Director Jeremy Slattery | Commercial Director Harry Owen | Head of Distribution Nick Owen 

ANDREW SENTANCE 

21 

emerging and developing economies, 

it is quite likely that a pick-up in global 

growth will be accompanied by a 

similar price surge in 2014-15. 

Second, we cannot be sure that we 

have yet seen the full effects of the 20 

to 25 per cent devaluation of sterling 

since 2007. As the UK economy recovers, 

importers and domestic producers 

may seek to pass through import 

costs to consumers, which they have 

been absorbing until now. And we 

cannot rule out the possibility of a 

further decline in the value of the 

pound if investor confidence shifts 

against the UK economy and sterling. 

Third, it will be very difficult for 

consumer price index inflation to fall 

to 2 per cent if the prices of services – 

which make up around half of the 

consumer basket – continue to rise at 

close to 4 per cent. The MPC has been 

waiting for some time for low wage 

growth and spare capacity to feed 

through into lower services inflation. 

But this has not happened. One explanation 

is that inflation expectations 

in the services sector are running significantly 

above the target – which 

would point to services sector inflation 

remaining stubbornly high. 

For all these reasons, it looks as if 

the inflation risks are still to the 

upside of the latest Bank forecast. The 

MPC will struggle to get inflation 

back to 2 per cent over the medium 

term without some change in monetary 

policy. 

Andrew Sentance is senior economic 

adviser to PwC, and a former member of the 

Bank of England’s MPC. 

Distribution helpline 

If you have any comments about the 

distribution of City A.M. 

please ring 0203 201 8955, or email 

distribution@cityam.com 

Editorial Statement: This newspaper adheres to the system of self-regulation overseen by the Press Complaints Commission. The PCC takes complaints about the editorial content of publications under the Editor’s Code of Practice, a copy of which can be found at www.pcc.org.uk 

Printed by Trinity Mirror Printing, St Albans Road, Watford Herts, WD24 7RG 

WS LINKS 

its two famous courses. Visit cityjet.com/win COMPETITION CLOSES 7 JUNE. Winner will be selected at random. Based on 2 people 

sharing and subject to availability of hotel/fl ights. Valid until 21 December. No cash equivalent.


22 

BUSINESSEDUCATION 

How the CFA can build 

professional integrity 

Principled investors are cashing in as trust falls, says Chris Harlow 

CONSUMER confidence in 

financial services is lower than 

ever. YouGov recently found 

that 70 per cent of the public 

believe banks are driven by greed, 

and just seven per cent think they 

have learnt their lessons from the 

crisis. In this environment, the ability 

to gain the confidence of clients, 

employers and regulators can put you 

at a premium in the employment 

market. 

But obtaining trust in the modern 

financial services industry can be elusive, 

particularly if you are a young 

professional with no reputation or 

track record to fall back on. 

The CFA Institute – the financial 

education body behind qualifications 

like the Chartered Financial Analyst 

(CFA), the Certificate for Investment 

Performance Management (CIPM) and 

the newly-created Claritas investment 

certificate – claims it has a solu- 

tion, by imparting a professional and 

ethical credibility to its students that 

is recognised by employers, consumers 

and authorities around the 

world. 

CREDIBILITY 

The CFA Institute draws on over 50 

years’ experience teaching the core 

principles of investment best practice, 

alongside a diverse and engaged network 

of alumni. There are over 

100,000 charterholders practicing in 

more than 130 countries globally, and 

the Institute interacts with them regularly 

to ensure it is teaching new students 

the requisite technical abilities 

to handle client assets effectively. 

The difficulty in completing the CFA 

programme – the course in its entirety 

takes most candidates two to five 

years of gruelling study, and requires 

four years’ relevant work experience – 

has driven its reputation as the indus- 

try standard for investment professionals. 

Charles Morrison, a hedgefund 

focused headhunter at Altus 

Partners, says that while the Masters 

in Business Administration (MBA) has 

become almost a given among top 

candidates, the CFA continues to 

hold a gravitas among employers and 

recruiters. 

The curriculum of the CFA programme 

covers a broad range of 

skills and practical knowledge needed 

in today’s investment industry. 

One day you could be studying corporate 

governance, the next distressed 

securities. Charterholders tend to 

hold technically demanding roles – 

some 22 per cent worldwide are portfolio 

managers, 14 per cent are 

research analysts, and seven per cent 

chief executives. 

But the trustworthy professional in 

today’s market must be more than 

just technically able. Craig 

CFA SPECIAL 

cityam.com

cityam.com 

Fitch 7city Learning now offers Claritas training 

VIRTUAL LEARNING 

Commanding 

consumer confidence 

is a valuable 

commodity in a 

cautious industry 

Access to our online portal: 

Tutor recordings Question bank Mock exams 


Donaldson, chief executive of Metro 

Bank – one of Britain’s fastest growing 

financial institutions – says that 

he “hires for attitude and trains for 

skill”. His hiring strategy is similar to 

that of many businesses that have 

thrived as trust levels have dropped. 

The CFA Institute also markets itself 

on the teaching of integrity and ethical 

standards to its students. Recently, 

it has renewed its efforts to attract 

the increasing number of professionals 

seeking to differentiate themselves 

in a guarded investment 

industry. 

Last year, the Institute’s mission 

statement read thus: “To lead the 

investment profession globally by promoting 

the highest standards of 

ethics, education, and professional 

excellence.” In response to the fall in 

confidence among consumers and 

authorities, it has recently added: “for 

the ultimate benefit of society”. 

But what does that mean for you? 

Clients want to know that the person 

they are entrusting with their assets 

can be relied upon to act in their best 

interest. In the absence of a professional 

track record, accreditation by 

the CFA Institute works as something 

of a guarantee. 

Charterholders are held to a strict 

code of conduct, binding them to protecting 

the integrity of the profession, 

and to maintaining and developing 

their professional competence. 

Employers and consumers can reasonably 

trust a charterholder to act 

within a defined set of rules, by 

which they are evaluated annually. 

Those who breach the code have their 

CLASSROOM TUITION 

For more information on Claritas, contact our dedicated client services team: 

t: +44 (0)845 072 7620 

e: clientservices@7city.com 

w: www.7city.co.uk/claritas-cityam 

CFA Institute does not endorse, promote, review, or warrant the accuracy of the products or services offered by this Society or verify or endorse the pass 

rates claimed by this Society. The CFA Institute Logo, CFA ® and Chartered Financial Analyst ® are just a few of the trademarks owned by CFA Institute. 

conduct reviewed by an independent 

panel, and are threatened with censorship 

or even the loss of their chartered 

status. 

ETHICS AND REGULATION 

Of course, there is a distinction to be 

made between ethics and regulation. 

The latter is arguably even more 

important to a modern financial services 

business, working hard to ensure 

it stays on the right side of the law. 

Indeed, it may even seem questionable 

how an ethical commendation 

by the Institute can differentiate you 

at all when regulation is stamping 

out unethical behaviour anyway. A 

recent study by financial adviser 

review group VouchedFor found that 

97 per cent of independent financial 

advisers have taken on new clients 

since the advent of the Retail 

Distribution Review (RDR), and just 19 

per cent had lost a single client. One 

of the reasons identified was that 

increased transparency enforced by 

RDR had boosted clients’ understanding 

of and trust in their adviser. 

But Steve Gazzard, operations director 

at the Institute of Financial 

Planning (one of the main backers of 

the influential Question of Trust campaign), 

says that, while he certainly 

supports regulation as part of restoring 

trust, there are some industries 

and roles in which ensuring clients’ 

interests are put first is more difficult 

to control, and it’s these areas where 

financial education can help you 

stand out. 

And through continued collaboration 

with its member societies, the 

Exam focused tuition: 

2 day revision course Online portal Question practice 

23 

CFA Institute has also been successful 

in obtaining recognition from regulators 

across the world, which can have 

some obvious benefits for your career. 

For example, almost all US states 

provide waivers to CFA charterholders 

from state licensing exams for investment 

advisers. In the UK, national 

member society the CFA Society of 

the UK runs the Investment 

Management Certificate (IMC) course, 

which is used by most leading investment 

firms to demonstrate regulatory 

competence. 

Partially in response to falling trust 

levels, the Institute has created the 

Claritas investment certificate, which 

aims to provide a basic introduction 

to finance and the investment industry, 

targeted at those operating in 

investment support roles like client 

services, IT, sales and compliance. The 

idea is to facilitate a higher level of 

communication between support 

staff, front-line investors and clients, 

reducing errors of miscommunication 

and providing a more customerorientated 

service. 

John Bowman, managing director 

and co-lead of education at the 

Institute, says that businessmen and 

women should not underestimate the 

power of improving communication 

in the restoration of trust. “One thing 

we’ve found when piloting the programme 

is the surprisingly high 

influence it’s had on changing culture 

– the effect of the programme 

has often been to create a more clientorientated 

business as well as reducing 

the risks inherent in the 

industry.”

24 

BUSINESSEDUCATION CFA SPECIAL 

The new investment 

qualification ending 

the industry divide 

Consistency of knowledge can provide balance to a business 

THERE’S a new name in the 

financial education market that 

looks to use the expertise and 

credibility of the CFA Institute 

to provide foundation level 

knowledge for staff supporting the 

investment industry. 

The Claritas investment certificate is 

the latest qualification to be released 

by the CFA Institute, and has just completed 

its trial run, with pilot participants 

including BlackRock, Aviva 

Investors and the BBC. It’s a self-study 

education programme, aiming to 

teach the basics of finance, ethics, and 

investing to staff in support roles like 

human resources, public relations, 

operations, IT, compliance, and legal. 

As with its Chartered Financial 

Analyst (CFA) programme, the 

Institute has used its network in the 

global investment industry to create a 

body of knowledge that hopes to be 

both relevant and practical. But 

Claritas differs fundamentally from 

the CFA programme. It is aimed primarily 

at those unlikely to ever 

require the depth of knowledge a 

front line investor would need. It is far 

shorter, with the Institute estimating 

it will take candidates 100 hours of 

study over six months to complete. 

And unlike the CFA, there is no education 

or experience requirement. 

But what’s the benefit for businesses 

in educating their support staff? John 

Bowman, managing director and colead 

of education at the Institute, says 

that a lack of understanding between 

different areas of a business can create 

a cultural barrier, and increases 

the risk of miscommunication errors 

between the front, middle and back 

offices. 

You may question the use of the programme 

in a business dealing with 

complicated investments – how could 

someone with a bare bones grasp of 

equity securities understand and communicate 

the finer points of an eventdriven 

strategy, for example? But 

anecdotal feedback from those who 

have trialled the programme revealed 

an immediate increase in confidence 

and comprehension among particpants, 

which has helped investment 

firms become more productive. 

A BUSINESS PERSPECTIVE 

Roger Brosch, chief executive of financial 

advisory company Foster Denovo, 

says that a base level of financial 

knowledge across all staff is “very 

important to the health and wealth of 

a business”, giving front line investors 

the confidence to delegate more, and 

“empowering staff at all levels to 

focus on doing the right thing”. 

With more minds understanding 

and tackling the problems affecting 

the money-making areas, the more 

likely it is that solutions are found 


The CFA’s latest offering aims to remove the educational barriers 

between the front office and supporting staff, says Chris Harlow 

and implemented effectively. 

Teaching support staff how their role 

helps the business remain profitable, 

and how they fit into the industry 

may also have the softer appeal of providing 

job satisfaction and creating 

motivation. 

The Claritas programme is reasonably 

priced, coming up at $685 (£445) 

for individual students, falling to $485 

when bought in bulk for 250 or more. 

But in most cases, it would probably 

be cheaper to provide training inhouse. 

So what’s the appeal? 

Bowman says that, apart from the 

expertise provided by the CFA 

Institute, Claritas differentiates itself 

from the competition because of its 

global applicability and credibility. 

“Other courses of a similar nature are 

geared towards local needs, standards 

and regulations,” he says. “But courses 

run by the CFA Institute are designed 

to teach a common language that can 

be understood regardless of where 

you are in the world.” 

But curing financial illiteracy 

among support staff – particularly 

those in client facing roles – could 

have unintended consequences if not 

properly managed. A study by Invesco 

found that industry jargon often creates 

a disconnect between investment 

firms and their clients. Client-facing 

staff should use their new knowledge 

as a filter rather than a barrier. 

WHICH STAFF PILOTED CLARITAS? 

44 

6 

Operations 

IT 

Accountant / Auditor 

Sales / Relationships 

WHAT IS CLARITAS? 

n Claritas is the latest offering from the CFA Institute, teaching a 

foundation-level knowledge to staff in investment support roles. 

NUMBER OF FIRMS THAT PILOTED THE COURSE 

COSTS AND REQUIREMENTS 

n Individual registration costs $685 (£445). This includes the exam 

registration fee, access to all study materials, and one exam sitting. 

cityam.com 

n Topics covered include financial statements, investment instruments 

like equity and debt securities, risk management and asset allocation. 

n The CFA Institute estimates that the programme requires 

approximately 100 hours of study over a course of six months. 

n Candidates will be tested using a computer-based exam, consisting 

of 120 multiple choice questions administered in English. 

United States 

31 

Uruguay 

4 

Malaysia 

2 

% 

6 

United Kingdom 

9 

Australia 

3 

China 

2 

17 

n When bought in bulk, 25 to 99 vouchers cost $635 each, 100 to 249 

cost $585, and 250 or more cost $485. 

n Unlike the Chartered Financial Analyst (CFA) programme, there are no 

educational or work experience requirements. 

7 

9 

Admin 

Marketing 

Other 

11 

India 

8 

UAE 

2 

Other 

2

BUSINESS HAS SUFFERED A SERIOUS BLOW. JOIN THE RECOVERY TEAM. 

In a world of financial risk, organizations can never be too prepared. That’s why more global 

companies are relying on Certified Financial Risk Managers. As an FRM, ® you’ll be recognized for 

mastering the complexities of credit, market, and operational risks. You’ll also play a critical role 

in the financial well-being of banks, consultancies, corporations, and asset management firms. 

If you want to be part of the solution, take the first step by earning your FRM certification. Visit 

the Global Association of Risk Professionals (GARP) at garp.org/frm. Early registration for the November 

2013 FRM Exam ends July 31.

26 

BUSINESSEDUCATION CFA SPECIAL 

CASE STUDY #1: AVIVA INVESTORS 

ALISON NAYLOR 

ALISON Naylor is 

learning and 

development business 

partner at Aviva 

Investors. Although the 

firm already provides a 

lot of internal training, 

Naylor says the 

business saw in 

Claritas an 

opportunity to “top 

up” the financial 

knowledge of some of 

its non-investment 

staff. The course was 

piloted with 

employees from the UK, 

Dubai and Luxembourg 

across a broad range of 

investment support roles 

within the human 

resources, operations, legal 

and finance departments. 

“Working in human 

resources myself, I also took 

part in the pilot course,” 

says Naylor. “I experienced 

first-hand an enhanced 

level of communication and 

an improved ability to 

understand what’s going on 

in the business. It’s 

certainly added to my 

professional credibility.” 

She adds that Aviva 

Investors would be happy to 

support other staff through 

the programme, if it fitted 

in with their personal 

development plan. “But it’s 

not right for everyone,” she 

says. Claritas falls short of 

providing the prerequisite 

knowledge required for the 

Chartered Financial Analyst 

(CFA) exam, so the IMC 

would be more appropriate 

for professionals looking to 

reach this standard. 

CASE STUDY #2: BLACKROCK 

ABRAHAM HARRIS 

ABRAHAM Harris is an 

analyst in the global 

talent management 

team at BlackRock. He 

says that the 

reputation of the CFA 

Institute was a key 

factor in its decision to 

pilot the programme. 

“We work very closely 

with the Institute, 

given the importance 

of the Chartered 

Financial Analyst 

qualification to our 

business,” he says. 

“The backing of the 

Institute gives Claritas an 

additional level of global 

credibility that made it very 

attractive to our firm.” The 

programme was piloted on 

staff in areas like human 

resources, technology, 

operations and global 

communications, and 

Harris says the business is 

now hoping to make it 

widely available. While 

formal feedback results 

haven’t been collected yet, 

Harris says that, 

anecdotally, he’s noticed an 


improvement in internal 

communication and a 

better understanding 

among support staff of 

what BlackRock does and 

how their role fits in. When 

asked if he thought Claritas 

would be appropriate for 

smaller companies, Harris 

answered, “Definitely – it’s 

not just companies of 

BlackRock’s size that would 

benefit from a foundation 

level of knowledge. It’s 

important for the entire 

investment industry.” 

CASE STUDY #3: LEGAL & GENERAL 

ALEX NICHOLSON 

ALEX Nicholson is 

senior learning and 

development adviser at 

Legal & General 

Investment 

Management. His 

business piloted the 

programme on staff 

working in IT, 

operations, human 

resources and 

corporate governance. 

Nicholson notes that 

the programme would 

be a good supplement 

or precursor to the 

Investment Management 

Certificate (IMC), which is 

typically taken before the 

Chartered Financial Analyst 

(CFA) Level I qualification. 

“The IMC is geared more 

towards understanding the 

current regulations,” he 

says, “whereas Claritas has 

a broader scope and helps 

professionals new to the 

industry understand the 

jargon. I think they work 

well together.” Legal & 

General supports all of its 

investment graduates 

through the IMC and CFA 

cityam.com 

What businesses thought of Claritas 

Firms piloting the CFA Institute’s latest offering share their views on the impact it has made, says Chris Harlow 

exams, but Nicholson says 

he could envision Claritas 

being taught to apprentices 

or graduates going into 

roles outside of the front 

office. Nicholson says that a 

key improvement since 

piloting the programme is a 

better understanding 

among employees of the 

industry. “Front line 

professionals are now able 

to delegate with 

confidence, freeing their 

minds up to generate 

revenue.”

cityam.com 

TERRESTRIAL 

TERRESTRIAL 

SATELLITE & CABLE 

SATELLITE & CABLE 

BBC1 

6pm BBC News 

6.30pm BBC London News 

7pm The One Show 

7.30pm EastEnders: BBC News 

8pm Waterloo Road: Dynasty’s 

ex-boyfriend asks her to go 

away with him. 

9pm Britain’s Biggest 

Hoarders: A woman whose flat 

is so cluttered she cannot live 

in it. 

10pm BBC News 

10.25pm Regional News 

10.35pm Question Time 

11.35pm This Week 

12.20am Holiday Weatherview 

12.25am-6am BBC News 

SKY SPORTS 1 

7pm Live Premier League Darts 

10.30pm The Footballers’ Football 

Show 12am Ringside 1am Test 

Cricket 2am The Verdict 2.30am 

The Footballers’ Football Show 

4am Test Cricket 5am The Verdict 

5.30am-6am Premier League 

World 

SKY SPORTS 2 

11am Live Masters Tennis 9.30pm 

Cycling 11pm WWE: Late Night – 

Raw 1am WWE: NXT 2am 

Premier League Darts 

5.30am-6am ATP Tour 

Uncovered 

SKY SPORTS 3 

7pm The Rugby Club 8pm Live 

PGA Tour Golf 11pm European 

Tour Golf 1am The Rugby Club 

2am Ringside 3am IAAF Athletix 

3.30am-6am Superleague Netball 

BRITISH EUROSPORT 

6pm Athletics 8pm Get Ready for 

BBC2 ITV CHANNEL4 CHANNEL5 

6pm Eggheads: Quiz show, 

hosted by Dermot Murnaghan. 

6.30pm The Chef’s Protege 

7pm The Dambusters: 70 Years 

On 

8pm Bradford: City of Dreams 

9pm The Tube: An 

Underground History 

10pm CHOICE 

Watson & Oliver 

10.30pm Newsnight: Weather 

11.20pm Dam Busters: The Race to 

Smash the German Dams 12.20am 

Keeping Britain Alive: The NHS in 

a Day 1.20am Sign Zone: Jobs for 

the Boys? – Panorama 1.50am This 

Is BBC Two 4am-6am BBC 

Learning Zone 

Roland Garros 8.15pm Cycling 

10.15pm Live Cycling 

12am-12.30am Cycling: Giro 

d’Italia 

ESPN 

5pm Live X Games 8pm ESPN 

Kicks: Extra 8.15pm Eredivisie 

10pm Goal! Bundesliga Preview 

10.30pm Off the Ball 11pm ESPN 

FC Press Pass 11.30pm French 

Ligue 1 Preview 12.30am Goal! 

Special – Bundesliga Best XI – 

Superstars 1am Live NBA 

Basketball: New York Knicks v 

Indiana Pacers (Tip-off 1.00am). 

3.30-6am Live NBA Basket: 

Golden State Warriors v San 

Antonio Spurs (Tip-off 3.30am). 

SKY LIVING 

7pm CSI: Crime Scene 

Investigation 8pm It’s Love, 

Actually 9pm Ladyboys 

10pm CSI: Miami 11pm CSI: 

Crime Scene Investigation 12am 

Bones 1am Boozed Up Brits 

6pm ITV News London 

6.30pm ITV News 

7pm Emmerdale 

7.30pm America and Its Guns: 

Tonight 

8pm Emmerdale 

8.30pm CHOICE Paul O’Grady: 

For the Love of Dogs 

9pm Murder on the Home 

Front 

10pm ITV News at Ten 10.30pm 

ITV News London 10.35pm 

Vicious 11.05pm The Job Lot 

11.35pm The Late Debate 12.05am 

Jackpot247 3am America and Its 

Guns: Tonight 3.25am ITV 

Nightscreen 5.05am-6am The 

Jeremy Kyle Show 

Abroad 1.50am Supernatural 

2.40am Bones 3.30am Medium 

4.20am Airline 5.10am-6am 

Nothing to Declare 

BBC THREE 

7pm The Apprentice 8pm 

Eurovision Song Contest 2013: 

Semi-Final Two 10pm Russell 

Howard’s Good News 10.30pm 

EastEnders 11pm Family Guy 

11.45pm American Dad! 12.30am 

Russell Howard’s Good News 1am 

Some Girls 2am Sweat the Small 

Stuff 2.30am Pop’s Greatest 

Dance Crazes 3.30am-4am Snog, 

Marry, Avoid? 

E4 

7pm Hollyoaks 7.30pm How I 

Met Your Mother 8pm The Big 

Bang Theory 8.30pm How I Met 

Your Mother 9pm The New 

Normal 9.30pm 2 Broke Girls 

10pm What Happens in Kavos 

11pm Fresh Meat 12am The Big 

Bang Theory 1am Happy Endings 

COFFEE BREAK 

Copyright Puzzle Press Ltd, www.puzzlepress.co.uk 

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. 

LAST ISSUE’S 

SOLUTIONS 

SUDOKU 

 

 

 

 

 

 

 

 

 

QUICK CROSSWORD 

P E R C H P A S T E 

R A O E T N 

I N D E P E N D E N T 

C A E C E R 

E A R S B E T R A Y 

S E E E S 

P H R A S E A S K S 

L I H A P T 

A P P R O X I M A T E 

N E E M I M 

K I N D S S I N G S 

KAKURO 

9 4 3 9 5 2 6 

7 5 9 6 8 1 3 7 

5 2 6 1 7 3 4 8 9 

8 3 2 3 1 1 2 

2 1 5 6 4 9 7 8 

8 1 2 5 

7 2 9 6 4 6 9 4 

9 5 2 1 8 8 3 

6 3 8 4 2 7 9 5 1 

2 1 4 3 6 4 1 2 

8 6 9 8 9 4 6 

KAKURO 

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. 

WORDWHEEL 

Using only the letters in the Wordwheel, you have 

ten minutes to find 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. 

WORDWHEEL 

SUDOKU 

The nine-letter word was 

REPULSION 


BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 

6pm The Simpsons 

6.30pm Hollyoaks 

7pm Channel 4 News 

7.55pm 4thought.tv 

8pm Secret Eaters 

9pm The Murder Workers: 

10.35pm 999: What’s Your 

Emergency? 

11.35pm 24 Hours in A&E 

12.40am Random Acts 

12.45am Skint 

1.35am Mary Queen of the High 

Street 2.35am Murdered in 

Tenerife: Channel 4 Dispatches 

3.05am Unreported World 3.30am 

A Place in the Sun: Winter Sun 

4.25am Deal or No Deal 

5.15am-6am Countdown 

1.30am What Happens in Kavos 

2.30am Fresh Meat 3.20am The 

Ricky Gervais Show 3.45am The 

Cleveland Show 4.10am Life 

Unexpected 4.50am-6am 

Desperate Housewives 

HISTORY 

7pm Storage Wars 7.30pm Pawn 

Stars 8pm American Restoration 

9pm Counting Cars 10pm Banger 

Boys 11pm Storage Wars 

11.30pm Pawn Stars 12am 

Counting Cars 1am Banger Boys 

2am Pawn Stars 3am Ax Men 

4am Mud Men 5am-8am 

Teleshopping 

DISCOVERY 

7pm Breaking Magic 8pm Gold 

Rush: The Long Road 9pm 

America’s Most Secret: Structures 

10pm Kings of Crash 12am 

America’s Most Secret: Structures 

1am Kings of Crash 3am Treasure 

Quest 3.50am America’s Most 

Secret: Structures 4.40am 

17 36 16 16 33 

30 

45 

26 

11 

3 7 5 

34 

35 

38 

10 

28 

10 27 

23 13 

15 18 

21 11 

22 

13 

34 

16 

4 8 9 

8 

6 

45 

29 13 

C 

R 

 

 

 

 

 

 

 

 

 

G 

N 

4 

E 

12 

I 

S 

21 

6 

24 

A 

H 

6pm Home and Away: Maddy 

and Spencer confront Chris. 

6.30pm 5 News at 6.30 

7pm CHOICE Cricket on 5: 

England v New Zealand; 

5 News Update 

8pm Aliens: Are We Alone? 

5Newsat9 

9pm FILM Daybreakers: 

Premiere. Thriller, starring 

Ethan Hawke. 2010. 

11.05pm True Horror: Dracula 

12.05am SuperCasino 3.55am 

House Doctor 4.20am House 

Doctor 4.45am Divine Designs 

5.10am Michaela’s Wild Challenge 

5.35am-6am Michaela’s Wild 

Challenge 

American Chopper 5.30am-6am 

Destroyed in Seconds 

DISCOVERY HOME & 

HEALTH 

7pm Deliver Me: Home Edition 

8pm Homes Under the Hammer 

9pm Dr G: Medical Examiner 

10pm A Haunting 11pm Secretly 

Pregnant 12am Dr G: Medical 

Examiner 1am A Haunting 2am Dr 

Oz 3am Homes Under the 

Hammer 4am Birth Day Girls 

5am-6am Birth Days 

SKY1 

8pm Greggs: More Than Meats the 

Pie: London 2012 gives the capital’s 

shops a chance to boost profits. 

9pm Arrow: As Malcolm makes his 

final preparations for the Undertaking, 

Oliver hopes he can outwit 

his rival in time to save Starling City. 

10pm Hawaii Five-0 11pm NCIS: 

Los Angeles 12am Night Cops 1am 

Road Wars 3am UK Border Force 

4am-6am Stargate SG-1 

TV & GAMES 

QUICK CROSSWORD 

 

 

 

 

 

 

 

 

 

 

ACROSS 

1 Manufactures (5) 

4 Beat hard (3) 

6 Japanese verse 

form (5) 

7 State of being 

disregarded or 

forgotten (5) 

9 Flashlight (5) 

10 More than is needed (7) 

13 Strong feeling or 

emotion (7) 

15 Indian currency unit (5) 

16 Scene of action (5) 

17 Fathers (5) 

18 Batch (3) 

19 Cut in two (5) 

TV PICK 

 

27 

WATSON & OLIVER 

BBC2, 10PM 

Another selection of character-based 

sketches from Lorna Watson and 

Ingrid Oliver, including a poodle and a 

basset hound discussing dog shows. 

PAUL O’GRADY: FOR THE LOVE OF 

DOGS ITV, 8.30PM 

The comedian sets out to reunite a lost 

Jack Russell with its owner and find a 

new home for two inseparable 

Staffies. 

CRICKET ON 5 

CHANNEL5, 7PM 

England v New Zealand. Mark 

Nicholas presents action from the 

opening day in the First Test in the 

two-match series. 

DOWN 

1 Annoy continually 

or chronically (6) 

2 Large group 

of fish (5) 

3 Raises up (5) 

4 Profitable (9) 

5 Network 

structure (4) 

8 Review of 

troops (5,4) 

11 Large nation 

(inits) (3) 

12 Breathe in (6) 

13 Product of an 

oyster (5) 

14 Secret store (5) 

15 Bobbin (4)

THURSDAY 16 MAY 2013 cityam.com 

28 

LIFE&STYLE TECHNOLOGY 

BY STEVE DINNEEN 

Six of the best: 3D printers 

These mind-bogglingly futuristic gadgets will soon be 

all the rage. Make sure you get in at the ground floor. 

THREE-DIMENSIONAL printers made 

headlines for the wrong reasons this week, 

with the legal profession scrabbling to 

work out the implications of make-yourown 

guns. If you want to sculpt less dangerous 

items, though, there are a growing list of 

increasingly affordable options. 

The new generation of 3D printers are the 

closest we have to the vending machines in 

science fiction movies where you press a 

button and an object appears, as if by magic. 

3D Touch 3D Printer £2,495 (triple head) 

The 3D Touch printer is one of the best-looking 

on the market. Using various plastics, it allows 

you to create items in multiple colours. Printing 

is simple, with a USB thumbstick passing the 

information to the machine. 

MakerBot Replicator 2 £1,445 

The MakerBot Replicator 2 claims to be 

the quickest, easiest to use 3D printer 

out there. It prints at a respectable 100 

microns and is one of the better 

looking alternatives. 

They use a digital model to render practically 

any shape, including items with moving 

parts, building it from scratch by slowly 

layering special plastics. 

They have been available since the turn of 

the century but sales have grown 

exponentially in the last couple of years as 

advances such as being able to use more than 

one colour have combined with decreasing 

prices to make them a viable purchase. Here 

is our guide to six of the best. 

CubeX £2,800 

The CubeX is one of the most user friendly 

printers on the market today, and also one of 

the more versatile. It allows you to print items 

as large as a basketball and construct your 

creations in up to three colours. It also allows 

you to use more than one material, meaning 

the main body of your object can be made 

from a very tough plastic, while details are 

added with one better suited to finer work. 

UP! 3D Plus £1,020 

This desktop 3D printer allows you to create 

objects using a host of industry standard 

computer aided design (CAD) software. It prints at 

150 microns, which sounds like techno-babble but 

means you can achieve incredibly precise detail. It 

is also among the cheapest on the market. 

Afinia H-Series £1,050 

One of the budget printers, the Afinia 

H-Series is still a viable option, allowing 

you to create some detailed objects. It 

may look a bit like something your 

grandad kept in his garage but it has a 

nice do-it-yourself feel to it. It is only 

able to print in one colour. 

Formlabs Form-1 £2,170 

Billed as a professional-grade 3D printer, the Form 1 certainly packs a punch. 

At a staggering 300 microns, it is the highest resolution option included in this 

round-up. The level of detail you can achieve, even on very small creations, is 

impressive. It comes in a decidedly Apple-looking brushed aluminium box and, 

while it is one of the more expensive 3D printers out there, it is our top choice.

30 

NEW Zealand aren’t the only 

opponents England will face 

at Lord’s during the first 

home Test of the summer. 

Once again, the weather is expected 

to take centre stage and according 

to the odds, there is a good 

chance that it could be the winner. 

The Three Lions go in to the contest 

as 4/5 favourites with Coral but 

that outcome is closely followed by 

the draw at 11/8 with the same firm. 

It was the result on each occasion 

in the three Tests between the teams 

in New Zealand back in March. 

England can count themselves fortunate 

to have escaped without 

defeat after Matt Prior, this week 

named England Cricketer of the 

Year, heroically dug in for an unbeaten 

110 in the final Test at Auckland. 

One of the main reasons England 

failed to come out on top was their 

inability to get the ball to swing. 

The hosts will be buoyed by a 

return to the more conducive Duke 

ball, which is used on home soil, as 

opposed to the Kookaburra that the 

majority of other nations prefer. 

But the cold weather that has 

been predicted over the next five 

days may hamper the hosts’ efforts 

to get the ball moving, while New 

Zealand, of any tourists, are most 

familiar with the typical early season 

English conditions that have got 

the better of many a visiting side. 

So quite rightly, the spotlight has 

fallen on the two bowling units, and 

IT’S NO secret that the Ballydoyle 

team covet the Investec Derby above 

all other races and Aidan O’Brien 

heads to York today to saddle Indian 

Chief in the Betfred Dante Stakes at 

2.45pm, hopeful of adding another 

string to his bow ahead of next 

month’s showpiece. 

O’Brien has been in scintillating 

form of late and has won every 

Derby trial run in Britain or Ireland 

this year. Sadly this race has been 

robbed by the absence of winter 

Derby favourite Telescope, who 

misses the race through injury, and 

also Ballydoyle’s Mars. 

The latter was meant to be the 

O’Brien first string here while the 

former’s absence means Indian 

after being outperformed by the 

Kiwis just a couple of months ago, 

James Anderson and company are 

the ones with a point to prove. 

Anderson, England’s king of 

swing, is quite understandably 

favourite, at 15/8 with Coral, to be his 

Chief has been priced up as if he was 

the first choice all along which 

means any value has long gone. 

Greatwood ran a cracker on his 

reappearance but was pulled out of 

Lingfield’s Derby trial at the 

weekend due to the soft ground and 

if conditions on the Knavesmire 

continue to deteriorate then he’s 

unlikely to run. 

Luca Cumani’s colt was beaten by 

Windhoek on his first run of the 

season anyway and that one has 

since landed Listed honours, 

maintaining his unbeaten record. 

Yet I have my doubts about Mark 

Johnston’s charge at this level. 

Things have panned out perfectly 

for him in two starts this term and 


THEPUNTER SPORT TRADER 

OLLIE DREW PREVIEWS ENGLAND’S FIRST TEST AGAINST NEW ZEALAND AND BILL ESDAILE LOOKS AT THE DANTE MEETING 

England to 

take a while 

to break 

down Kiwis 

The form of bowler Steven Finn could be key to England’s fortunes against New Zealand 

team’s top bowler. 

Stuart Broad (11/4) will be fired-up 

after losing the vice-captaincy to 

Prior and has taken wickets for 

Nottinghamshire but Anderson 

looks a sound investment in the market 

and needs just two more Test 

he’s unlikely to get it all his own 

way here. Therefore, the one I like is 

GHURAIR, beaten by both 

Greatwood and Windhoek last 

month, but over-priced at 6/1 with 

Paddy Power. 

The John Gosden yard had him 

down as a Guineas horse last season 

before fearing he didn’t quite have 

the toe for a mile. He probably 

needed the run on his first run back 

and the ground should be exactly to 

his liking. 

Gosden is in better form now than 

he was in April and the champion 

trainer has the French Derby in 

mind for this fellow. 

The 2.15pm Middleton Stakes 

looks to have a false favourite in 

wickets to register the career 300mark. 

Steven Finn (11/4) might consider 

himself in with a shout too after a 

productive time in New Zealand. 

That tour demonstrated his all-round 

improvement and, boosted by his 

Dalkala. The French raider may be 

clear on official ratings but she has 

to carry a penalty as a previous 

Group Two winner and I’m not 

convinced the Aga Khan-owned 

horse wants to be running at 10 

furlongs. 

She just got away with that trip 

as a juvenile but wanted and ran 

well over further last year. She may 

be found out by CUBANITA for 

speed here. 

Ralph Beckett’s horses are flying 

and she beat subsequent Dubai Duty 

Free winner Sajjhaa on her last start. 

She looks more straightforward 

than Gosden’s Starscope. 

Finally, the Hambleton Stakes 

(3.15pm) looks a good opportunity 

cityam.com 

maiden half-century, he topped the 

England FTI Most Valuable Player 

winter 2012 rankings after his 

exploits with bat and ball. 

On his own turf, a buy of the 

Middlesex man’s series runs at 24 

with Sporting Index is a speculative, 

yet relatively low-risk investment 

that appeals. 

Despite anticipating the draw at 

Lord’s, England should win the series 

and are as short as 2/5 to make their 

superiority count. The draw is 3/1 

and New Zealand are 10/1. 

Andy Flower’s men sit six rungs 

higher than eighth-placed New 

Zealand in the current ICC Test rankings 

for good reason and I don’t 

expect them to be complacent ahead 

of the Ashes as they prepare for the 

main event. 

Backing England to win the series 

1-0, at 7/4 with Coral, seems the sensible 

approach. A spread bet on that 

scoreline can be placed by buying 

England 1-0 at 36 with Sporting 

Index. This market comes with the 

insurance of 25 points being awarded 

if the series winner is correct in 

addition to the 50 when the score is 

rightly selected. 

n Pointers… 

England to draw with New Zealand in first Test at 11/8 

with Coral 

Anderson to be top England bowler in first Test at 

15/8 with Coral 

Buy Steven Finn series runs at 24 with Sporting Index 

England to win series 1-0 at 7/4 with Coral 

Ghurair looks overpriced to end Aidan O’Brien’s Derby trial monopoly at York 

for FORT BASTION to complete the 

hat-trick. A classy three-year-old for 

Richard Hannon, he had some smart 

Group form before winning his 

maiden easily and then beating the 

useful Starboard. 

Now with Ed Dunlop, he looks the 

most progressive in a moderate 

looking field and, even off topweight, 

should give a good account 

for Sir Robert Ogden who loves a 

winner at York. 

n Pointers… 

CUBANITA 2.15pm York 

GHURAIR e/w 2.45pm York 

FORT BASTION 3.15pm York 

@BillEsdaile

cityam.com 

McCullum set 

to risk it all on 

New Zealand 

BY JOSH RICHARDS 

NEW Zealand captain Brendon 

McCullum says he will not be afraid 

to take risks in an effort to earn the 

tourists a first Test match win over 

England at Lord’s since 1999 when 

play begins this morning. 

The Black Caps have won just once 

in their 15 visits to the home of cricket 

and are currently six places below 

England in the world rankings. 

And, as McCullum weighs up 

whether to include seamer Doug 

Bracewell or spinner Bruce Martin in 

the bowling attack, the 31-year-old 

acknowledges he may have to go 

against the grain to have the chance 

of toppling England. 

“I would hope they’re educated 

gambles,” said the New Zealand 

right-hander. 

“Just because you run past the principal’s 

office doesn’t mean you’re 

not doing your homework.” 

England were held to a 0-0 draw 

when the two teams met in a three- 

Test series in March. 

But captain Alastair Cook, who is 

preparing to lead England in a home 

Test series for the first time, refuted 

suggestions that his team had been 

complacent overseas and insisted 

they are fully focused for the start of 

the summer. 

“I don’t think there was complacency 

around, but we didn’t play as well 

as we could have done; that’s the bottom 

line,” said the Essex opener. 

“Every Test series you play for 

England is a hugely important series, 

it doesn’t matter what has gone 

before. We are fully focused on these 

two weeks of Test cricket. We have to 

be at our best to win.” 

PROBABLE TEAMS 

England 

n A Cook (c), N Compton, J Trott, I 

Bell, J Root, J Bairstow, M Prior, 

S Broad, G Swann, J Anderson, S Finn 

New Zealand 

n P Fulton, H Rutherford, 

K Williamson, R Taylor, D Brownlie, 

B McCullum (c), B Watling, T Southee, 

D Bracewell, N Wagner, T Boult 


Andy Murray grimaces before retiring injured from his second-round match in Rome 

Murray fears back injury will 

rule him out of French Open 


WORLD No2 Andy Murray virtually 

ruled himself out of competing in 

the French Open later this month, 

after a recurrence of a back injury 

forced him to retire from his Rome 

Open second-round match with 

Marcel Granollers. 

The Scot, who turned 26 

yesterday, was dogged by back 

spasms in 2012 and walked off 

court in Italy following treatment 

for a similar complaint yesterday, 

after he had won a second set tiebreak 

to square the match. 

The best day ever? You wouldn’t bet against it 

Epsom Downs Racecourse, 31 May – 1 June 2013 

World-class racing, first class hospitality, with picnic packages and champagne lawns, 

tickets to the Investec Derby are the perfect gift for a fantastic day out. 

Tickets are selling fast, so book online today at 

epsomdowns.co.uk or call 0844 579 3004 

Play is scheduled to begin at 

Roland Garros on Sunday 26 May, 

but Murray fears he is set to miss a 

grand slam for the first time since 

sitting out the 2007 Wimbledon 

championships with a wrist injury. 

“I’d be very surprised if I was 

playing in Paris,” he said. “I have an 

issue with my lower back that I will 

try and get sorted in the coming 

weeks. I think the shots that hurt 

get exaggerated more on clay. 

“I’ll make a decision on Paris 

after the next five days. I’ll 

obviously need to take some days 

off and see how it settles down.” 

SPORT 31 

IN BRIEF 

Wiggins stays in Giro contention 

n CYCLING: Team Sky’s Sir Bradley 

Wiggins remains fourth in the Giro 

d’Italia after finishing stage 11, won by 

Lithuania’s Ramunas Navardauskas, in 

the peloton. 

UK Athletics boss steps down 

n ATHLETICS: UK Athletics head 

coach Peter Eriksson has resigned just 

five months after taking up the post. 

Ferdinand calls time on England 

n FOOTBALL: England defender Rio 

Ferdinand has announced his 

retirement from international football. 

Results 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMORIES ARE 

MADE OF THIS

CHELSEA could be forced to 

drastically rethink plans for their 

post-season American tour if they 

are drawn into a Premier League 

play-off with Arsenal for third place. 

Any play-off would be likeliest to 

take place at Wembley next week, 

when the Blues are due to face 

Manchester City in back-to-back 

matches in St Louis, on Thursday, 

and New York, on Saturday. 

A decision on the date and 

venue for a play-off rests with 

the Premier League and clubs 

are obliged to fall in line. 

A deal for Wembley is 

not yet in place, but league 

chiefs have ruled out 

staging the play-off in the 

US, in a move that could 

have led to accusations of 

reviving the controversial 

39th game concept via the 

back door. 


32 

SPORT @cityam_sport 

cityam.com/sport 

Tennis: Page 31 

Chelsea seal clean sweep 

Injury-time winner adds Europa League title to roll of honour 

EUROPA LEAGUE 

BENFICA......................................1 

CHELSEA.....................................2 


VICTORIOUS Chelsea interim boss 

Rafael Benitez revealed insider 

secrets from former Benfica defender 

David Luiz were the key to securing 

their historic Europa League 

success in Amsterdam last night. 

After Oscar Cardozo had cancelled 

out Fernando Torres’ opener for the 

Blues, defender Branislav Ivanovic 

banished his anguish of sitting out 

last season’s Champions League 

final triumph through suspension 

to head a 93rd-minute winner from 

Juan Mata’s corner. 

BY FRANK DALLERES 

And Benitez, who is set to leave 

Chelsea in the summer, said their 

dramatic late winning goal, which 

saw Benfica lose a seventh consecutive 

European final, was no fluke. 

“The second goal was something 

we practiced,” said the Spaniard. 

“We knew how they defended corners 

and David Luiz told us problems 

they have. 

“It’s a special night for everyone 

involved when you win a European 

final. I’m really pleased for the players 

and everyone involved. We 

looked like we didn’t have the legs in 

the first half, but in the end we 

deserved it because we worked so 

hard. I’m very proud.” 

Victory for Chelsea follows last season’s 

Champions League triumph 

and ensures they are the first 

English club to have lifted all three 

major European trophies, having 

won the now defunct Cup Winners’ 

Cup in 1971 and 1998. 

And match-winner Ivanovic feels 

the latest addition to the everexpanding 

Stamford Bridge trophy 

cabinet was fully merited. 

“This team deserved this, because 

we have had a very difficult season 

and a lot of games,” said the Serbia 

defender. “Benfica played very well 

but we scored from set pieces and 

worked very hard preparing that 

part of our game. We deserve that 

trophy.” 

After a goalless first half, where 

Benfica enjoyed the lion’s share of 

possession, but Chelsea had gone 

closest to scoring through Frank 

Lampard, the Blues made the breakthrough 

on 59 minutes. 

Torres held off the challenge of 

defender Luisao then showed great 

composure to side-step goalkeeper 

Play-off prospect is Blues headache as 

league rules out playing decider in US 

Chelsea currently lie third but a 

draw against Everton on Sunday 

would allow Arsenal to draw 

level on points, goal 

difference and goals 

scored, if the 

Gunners beat 

Newcastle by one 

goal and score at 

least two. 

Arsenal could force a 

play-off for third 

Artur Moraes and slot in his ninth 

European goal of the season. 

The lead lasted just eight minutes 

though, when defender Cesar 

Azpilicueta handled Cardozo’s chip 

in the box and the Paraguay forward 

sent goalkeeper Petr Cech the wrong 

way with the resultant penalty. 

Lampard, who says “things are 

looking good” regarding a possible 

contract extension, was denied a late 

winner, and his 204th goal for 

Chelsea, by the crossbar. 

But, as the final seemed destined 

for extra time, Ivanovic leapt at the 

far post to spark wild celebrations. 

“This is an amazing time for all 

involved,” said Lampard, who lifted 

the trophy alongside injured club 

captain John Terry. 

“We’re very fortunate at Chelsea, 

but you make your own luck and we 

have stuck together.” 

QPR striker Remy among three 

men arrested over alleged rape 


QUEENS Park Rangers striker Loic 

Remy was arrested on suspicion of 

rape yesterday. 

The 26-year-old, along with two 

other men, were detained at a west 

London police station after a 

34-year-old woman reported an 

alleged attack to Kent Police. 

A police statement read: “Officers 

from Sapphire [unit] are 

investigating an allegation of rape 

which happened on 6 May in the 

Murray gives up on French Open 

after back injury strikes again 

Ivanovic and 

Torres fitting 

final heroes 

FOOTBALL 

COMMENT 

TREVOR STEVEN 

CHELSEA’S Europa League finalwinning 

goals could not have 

come from two more fitting 

players on a night when their 

never-say-die attitude proved the 

deciding factor. 

While Juan Mata, Frank 

Lampard and Ramires struggled to 

make an impact, the muchmaligned 

Fernando Torres and 

rock-solid Branislav Ivanovic made 

the difference. 

Torres was very good indeed, 

and unusually determined, as 

illustrated by his opening goal. He 

showed great strength to hold off 

Luisao, then a composure 

reminiscent of the Torres of old. 

You could not begrudge Benfica 

an equaliser, yet the Blues fought 

to the last second and Ivanovic 

struck with a brilliant piece of 

heading technique. 

His eyes were glued to the ball 

and, despite falling slightly 

backwards, he caught the ball 

flush on his forehead with power. 

The Serb is a vital part of his club’s 

backbone and thoroughly 

deserved his moment of glory. 

Interim boss Rafael Benitez, 

meanwhile, can enjoy the summer 

knowing his mission has been a 

success. He was never going to be 

the fans’ choice, but has proved 

that he is still a winner and will 

surely be inundated with good job 

offers for next season. 

Trevor Steven is a former England 

interntaional footballer. He now works 

as a media commentator. 

west London area. The victim 

alleges she was raped by three men. 

“On the morning of Wednesday 

15 May three men, aged 26; aged 23; 

aged 22yrs, were arrested at an 

address in Fulham on suspicion of 

rape – they remain in custody at a 

west London police station.” 

Relegated QPR, who signed Remy 

from French Ligue One side 

Marseille for a club record £8m in 

January, said they were unable to 

comment due to the ongoing police 

investigation.

A REFRESHINGLY DIFFERENT APPROACH 

TO HOSPITALITY 

HURLINGHAM 7TH /8TH /9TH TH TH TH 

HURLINGHA AM M 7 / /8 /9 JUNE 

2013 

Limited Limiteed 

hospitality available avv 

vailable on all 3 days: dayys: 

call 020 7936 79936 

5284 to enquire enq quire 



MAKE IT A MEMORABLE WEEKEND

Cityam%202013-05-16

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?