Euro Defeat Leaves Villas-Boas On Brink: Chelsea Lose in Naples

LOSSES CAN EXCEED YOUR INITIAL DEPOSIT
THE FIRST AND STILL NUMBER ONE

THE ORIGINAL
IGINDEX.CO.UK/SPREADBET
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FTSE 100 t5,928.20 -17.05 DOW 12,965.69 +15.82 NASDAQ t2,948.57 -3.21 /$ 1.58 unc / 1.19 t-0.01 /$ 1.32 unc
But European traders are sceptical as Greek bailout rally fades
US MARKETS ignored the shakiness of
the Greek bailout deal yesterday, with
bullish investors pushing the Dow
Jones through the symbolically impor-
tant 13,000 mark for the first time
since before the financial crisis.
But Europes markets slipped as wor-
ries mounted that politicians had com-
prehensively failed to put an end to
Greeces debt woes.
The Dow Jones ended the day up
0.12 per cent at 12,965.69 having ear-
lier passed 13,000 for the first time
since May 2008. Investors remain opti-
mistic about the countrys growth and
employment prospects, boosted in
part by steady support from the
Federal Reserves quantitative easing.
However, European stocks dropped
as economists criticised the Greek
deal, arguing it was based on ludi-
crous economic growth forecasts and
that another bailout would be needed
soon for it to stay in the Eurozone.
Germanys DAX fell 0.58 per cent,
the French CAC dropped 0.21 per cent
and the Euro Stoxx50 fell 0.34 per cent.
Portuguese government bonds took
a hit as investors worried the country
would be next to come under pressure,
with 10-year yields rising 17.8 basis
points to 12.433 per cent.
Commodities jumped as investors
looked for safety, pushing gold up 1.69
per cent, while Brent crude oil, pushed
in part by growing unease over Iran,
settled up $1.61 at $121.66 a barrel.
DOW HITS 13,000
BY TIM WALLACE
WORLD ECONOMY
www.cityam.com Issue 1,575 Wednesday 22 February 2012 FREE

MOTORING
WE REVIEW
THE PORSCHE
PANAMERA AND
BMW 328i P30
BUSINESS WITH PERSONALITY
is unsustainable, with radical action
needed soon. Ben May of Capital
Economics said the country could
even leave the Eurozone this year.
May said: Even if weaker growth
and budget slippage do not immedi-
ately prompt the bailout to collapse,
Greece could still choose to end it if it
decides that the medium-term
assumptions embodied in the debt
projections are unrealistic.
While the Eurozone was setting up
a full-time presence in Athens to mon-
itor Greek spending, the EU was given
a warning of its own by UK chancellor
George Osborne, who voted against
signing off the EUs 2010 budget.
For the 17th year in a row auditors
refused to sign off the budget, prompt-
ing the UK, Netherlands and Sweden
to call on countries to uphold the
same high standards for the EU budg-
et as they would for national budgets.
MORE: PAGES 4 - 7, PAGE 26
Certified Distribution
02/01/12 till 29/01/12 is 92,258
US traders have been emboldened by improving economic data Picture: REUTERS
Eurozone leaders claim the deal,
which was struck in the early hours of
yesterday morning, will prevent a
Greek default and reduce the coun-
trys debt from 160 per cent of GDP
now to 120.5 per cent by 2020.
But this assumes the economy will
contract by four per cent this year, sta-
bilise in 2013 and grow strongly from
then. ING economist Carsten Brzeski
said such hopes were largely based on
the principle of wishful thinking.
Many economists believe the bailout
ANALYSIS l EURO STOXX 50
16:00 10:00 12:00 14:00
2,550
2,545
2,555
2,540
2,535
2,530
2,525
2,541.60
21 Feb
ANALYSIS l Dow Jones Industrial Average
16:00 10:00 12:00 14:00
12,990
13,010
12,970
12,950
12,930
12,965.69
21 Feb
EURO DEFEAT LEAVES
VILLAS-BOAS ON BRINK
CHELSEA LOSE IN NAPLES P34
GOOGLE is taking on the worlds lead-
ing financial data firms after striking
a deal to provide real-time prices of
stocks on the London Stock Exchange
(LSE) for free.
The agreement means that users of
the Google Finance website can now
view a live feed of the last trade
price a service that was previously
only available on a 15-minute delay.
Google Finance is targeted at indi-
vidual investors but the addition of
live data poses a threat to subscriber-
only services aimed at professionals,
such as those provided by Bloomberg
and Thomson Reuters.
The deal is one of the first of its
kind for the LSE, run by chief
executive Xavier Rolet
(pictured) and is not
exclusive, meaning that
similar agreements
could be agreed with
other websites.
It shows that alterna-
tive aggregators can repli-
cate some of the basic
services of a Thomson
Reuters or a
Bloomberg, but
what Thomson
Reuters and
Bloomberg provide
in terms of the
whole package is
not replicated by
what Google
Finance provides, said media analyst
Thomas Singlehurst of Citigroup.
Equally, it shows that any of these
businesses that are built up on the
aggregation of quasi-public data are
going to see that competitive position
eroded as other companies come
along and try to do it better, whether
its Bloomberg Law or Google
Finance.
A Bloomberg Terminal, ubiquitous
on trading floors, costs in the region
of $20,000 (12,600) per year but does
offer additional services, such as the
ability to view tradeable prices and
faster data delivery. In November 2011
LSE had 93,000 subscribers using
such professional user terminals.
Google and the LSE would not com-
ment on the cost of the live data but
it is likely to be a substantial increase
on their previous agreement.
The stock exchanges data busi-
ness is growing fast, with revenues
rising 24 per cent to 52.8m last
quarter, accounting for 27 per cent
of group revenue.
Google also used the statement to
announce similar agreements
with Germanys Deutsche
Boerse and Italys Borsa
Italiana.
The firm already
provides real-time
share data from
the New York
Stock Exchange,
Nasdaq, and
exchanges in
China and India.
Google offers
real-time LSE
data for free
MICHAEL Gove, the education secre-
tary, yesterday launched a scathing
attack on the Leveson inquiry, which
he blamed for cultivating a chilling
atmosphere towards freedom of
expression.
In comments that could be seen as
critical towards David Cameron, who
ordered the Leveson inquiry, Gove
said there was a temptation for politi-
cians to succumb to an establish-
ment inquiry in the aftermath of a
specific crisis.
But he added: Sometimes the rec-
ommendations give birth to quan-
gos, commissions and law-making
bodies that generate over-regulation,
and a cure that is worse than the dis-
ease.
The Leveson inquiry was set up in
the wake of the phone hacking scan-
dal at the News of the World, and has
heard from a number of journalists
and celebrities who must testify
under oath. It looks set to recom-
mend much stricter regulation of the
press in the future.
Gove, formerly an employee of the
News International-owned Times
newspaper, was speaking to journal-
ists at the monthly press lunch in the
House of Commons. His wife, Sarah
Vine, still works for the Times.
Gove launches scathing attack
on Leveson inquiry into press
BY JAMES WATERSON
CAPITAL MARKETS
BY DAVID CROW
POLITICS
News
11 CITYA.M. 22 FEBRUARY 2012
MUNCHS SCREAM TO GO ON SALE IN NEW YORK
EDVARD Munchs iconic painting The Scream will be auctioned in New York this year,
with the price for the 1895 masterpiece expected to exceed $80m (50.7m). The painting
will be sold at Sothebys in New York on 2 May, but will be on public display in London
for the first time ever from 13 April. Picture: GETTY
News
BCs new fund
pulls in 6.5bn
PRIVATE equity house BC Partners has
shone a ray of light on the troubled
buyout industry by raising 6.5bn
(5.45bn), in the largest European
fundraising since the onset of the
financial crisis.
The owner of gyms chain Fitness
First and Swedish cable group Com
Hem raised more than it expected
despite many of the worlds pension
funds, banks and insurers sitting on
their cash last year. Only US giant
Blackstone has recently collected a
greater a sum, taking four years to
bring in $16bn (10.14bn).
BC tapped new investors, including
sovereign wealth funds in the Middle
East and Asia over 18 months. It will
enable the group to maintain a deal
rate after being one of the most active
private equity firms in Europe last
year, when it carried out four
takeovers including a deal worth
600m to 700m for Phones 4u.
Charlie Bott, managing partner of
BC, said raising a fund took two to
three times longer than at the height
of the boom. BC offered the first wave
of investors a five per cent reduction
in management fees and carried
interest the bonuses paid out to pri-
vate equity executives.
Private equity firms raised $263bn
in 2011, sightly less than in 2010,
according to data firm Preqin.
BY PETER EDWARDS
PRIVATE EQUITY
OSBORNE URGED TO CUT TAXES ON

BUSINESS
George Osborne has come under
renewed pressure from the
Conservative right to cut business
taxes and simplify labour laws in next
months Budget. Liam Fox, the for-
mer defence secretary, called for
urgent action to deal with the true
horror of the governments econom-
ic inheritance.
PANDORA PLUNGES ON PRODUCT SWAP
XShares in Pandora suffered their
steepest fall in six months after the
danish jeweller said it would allow
retailers to swap its unsold jewellery
for better-selling items. The unexpect-
ed move, which came as the company
reported a 39 per cent drop in fourth-
quarter operating profits, will cost
Pandora up to DKr800m (90.2m).
MINISTERS HARDEN STANCE ON
GROUPS OPPOSING NHS BILL
Ministers have stepped up their
attacks on health groups opposing
the reform of the National Health
Service as debate surrounding the bill
becomes increasingly bitter.
QINETIQ DERECOGNITION PLAN
SPARKS TRADE UNION ANGER
Qinetiq, the privatised defence tech-
nology contractor, provoked fury
among trade unions yesterday by
announcing plans to derecognise
them for collective bargaining pur-
poses. The company said it would end
bargaining with Prospect, the GMB,
PCS and Unite from the end of March.
EX-BANKER HAS TO SELL 8M HOME
TO END DISPUTE WITH INVESTORS
A former Goldman Sachs banker has
agreed to give up his 8m country
home after a long-running dispute
with a group of investors. Christopher
Wightman will vacate Evenley Hall in
Northamptonshire, and allow it to be
sold. About 2.2m of the proceeds are
expected go to shareholders in a com-
pany that Mr Wightman ran called
Clickstream Technologies.
THE JOY OF TEXT BEGINS TO WANE
Texts have been the bedrock of the
mobile phone sector since the first
message was sent almost 20 years
ago. But the inexorable rise of instant
messaging is eroding the SMS.
BP SETTLES WITH INJURED RIG COOK
AS TRIAL LOOMS
BP has agreed a settlement with a
worker injured in the Gulf of Mexico
disaster, in a move further raising
hopes the oil giant could yet settle
other claims and avert the trial due to
begin on Monday to determine dam-
ages and fines related to spill.
FRANCE AND GERMANY LOOK TO
HARMONISE CORPORATE TAX RATES
Germany and France moved even clos-
er to full fiscal union by announcing
they will be harmonising their cor-
porate tax rates by 2013 a move that
will increase the prospect of an EU-
wide enforced tax rate that Ireland
and the UK have been opposed to.
AMR SEES $1BN IN NEW REVENUE
FROM RESTRUCTURING
American Airlines parent AMR said
new revenue needed for its turn-
around plan requires labour agree-
ments that allow it to use larger
planes to sell more premium tickets
and to strike agreements with air-
lines to handle more domestic flying.
DUNKIN AND STARBUCKS TO DUKE IT
OUT IN INDIA
Dunkin Donuts and Starbucks Corp.
are bringing their coffee war to India,
attempting to tap Indians growing
appetite for Western fast food.
Jubilant FoodWorks said it expects to
open the first Dunkin Donuts in
India by June.
WHAT THE OTHER PAPERS SAY THIS MORNING
Osbornes lucky escape on the deficit
FOR once, and I can barely believe that
Im writing this, George Osborne has
reason to be happy. The budget deficit
for this fiscal year to date (April 2011-
January 2012) was a still horrendous,
Greek-style 93.5bn, but this was
down 15.6bn from a year earlier, a
very non-Greek development. This is a
much better performance than
expected by the Office for Budget
Responsibility (OBR): it was hoping for
a decline of just 9bn for the whole
year (from 135.8bn in 2010-11). Unless
the situation worsens drastically over
the next two months, it looks as if
Osbornes deficit reduction plans have
moved slightly ahead of target.
Even better was the reason for this
improvement: spending is growing in
cash terms at a slower rate, and falling
faster in real terms. Central govern-
ment current spending has risen by
just 1.6 per cent so far this fiscal year,
versus a forecast of a 3.1 per cent rise
over the full year. Local authority
finances were also better than expect-
ed. Perhaps less happily, spending on
capital projects is also falling faster
than expected, something worth
remembering next time a govern-
ment minister claims that infrastruc-
ture projects are being protected.
While spending seems to be under
control this could yet change as offi-
cials often go on scandalous splurges
to max out budgets just before the
end of the financial year tax receipts
have slowed. This is an excellent devel-
opment: the reduction in the deficit is
being achieved through reduced
spending growth, not by clobbering
taxpayers even more. Central govern-
ment revenues were up 2.8 per cent
year on year in January, with growth
over the year to date at 4.7 per cent.
Citis Michael Saunders is predicting a
deficit of just 122bn this financial
year, 5bn less than the official fore-
cast. Simon Ward of Henderson is pre-
dicting 119bn, close to the OBRs
original 116bn forecast at the time of
Osbornes first Budget in June 2010. It
would equate to 7.8 per cent of GDP,
compared with a peak of 11.1 per cent
in 2009-10. If this materialises, it
would be a devastating blow to the
OBRs credibility, suggesting its recent
revisions were far too pessimistic.
But it would be grossly premature
to uncork the champagne. The UKs
six-year deficit reduction plan
remains out of reach. The spending
undershoot this year seems to have
happened by chance. What the
Chancellor should actually be doing is
to accept that bigger, faster cuts are
possible as demonstrated by his sur-
prise, unplanned budgetary success in
recent months and revise his budget
for next year accordingly. If he does
that, he will have earned the credibili-
ty to introduce tax cuts at his Budget
next month. These should be supply-
side measures that will partly pay for
themselves by stimulating growth;
there should be no fiddling with
demand-side measures such as Vat.
Osborne ought to consider either
slashing corporation tax to 20p as
quickly as possible (from 26p today) or
cutting employers national insurance
contributions, reducing the cost of
labour and increasing its demand. Im
assuming that he will not want to
scrap the competitiveness-destroying
50p top rate, even though the drop in
income tax receipts in January further
suggests it is not raising much money.
But if the past 10 months have shown
anything, it is that there is more fat to
chop out of the UKs bloated govern-
ment budget than is usually realised
and that this is the time for greater
boldness on the tax front.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
HSBC is to adopt a complicated new
way of paying the cash part of its
staffs bonuses after pressure from the
Bank of England and FSA.
The bank is set to unveil a system to
pay for the up-front cash chunk of
bonuses (20 per cent of the total) for
senior UK staff by issuing new shares
and instantly selling them.
HSBC hopes to stop bonuses from
diminishing its capital base, with the
rest of the awards to be paid out in
deferred shares due to EU rules.
It is not clear what value of pay will
be accounted for in this way but the
bank believes it will be a negligible
amount in terms of affecting share-
holder value.
The FSA said it was doing the bid-
ding of the Bank of Englands
Financial Policy Committee by telling
firms they must not allow bonus pay-
outs to hit their capital base. Other
banks could also adopt a similar plan.
However, if only applied to HSBCs
UK staff, the overhaul will not affect
most of the bonuses the bank pays.
BY JULIET SAMUEL
BANKING
HSBC overhauls bonuses

HSBC chief Stuart Gulliver is finding inventive new ways to kowtow to regulators demands
NEWS | IN BRIEF
J&J names new chief executive
Johnson & Johnson chief executive
William Weldon will step down from his
post in April after a series of recalls
called into question the quality of the
healthcare giants products, from artifi-
cial hips to infant Tylenol. Weldon, 63,
will remain chairman, the company said
yesterday. He has held both roles for
nearly 10 years, after three decades
spent working his way through the com-
pany from his first job as a sales repre-
sentative at J&J's McNeil consumer
division. Vice chairman Alex Gorsky, 51,
will become chief executive as of the
next board meeting on 26 April.
Obama to lay out tax strategy
The US Treasury Department will today
roll out a corporate tax reform plan
from President Barack Obama. The
Obama plan will follow such principles
as fairness that the president laid out
in his State of the Union address last
month, officials said last night.
Analysts said a cut in the corporate tax
rate, which presently tops out at 35
per cent, may be included, as well as
proposals for a minimum tax on over-
seas profits.
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ALLISTER HEATH
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track record
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
The new jobs website for London professionals W W W. C I T YA M C A R E E R S . C O M
A KEY FSA body is trying to ambush
the governments flagship financial
reform by enlisting the support of
opposition MPs to insert a last-
minute amendment, City A.M. has
learned.
The change being pushed by the
FSAs Consumer Panel, an influen-
tial advisory body, would give firms
a new explicit legal fiduciary duty
towards their customers that would
go far beyond their current respon-
sibilities.
It would require them to sign up
to avoiding conflicts of interest in
serving clients, not profiting off
customers without telling them
about it, giving undivided loyalty
to the customer and vowing to
keep their information confiden-
tial.
The Consumer Panel will tomor-
row unveil a briefing paper outlin-
ing the amendment to the
Financial Services Bill, which would
fundamentally transform the rela-
tionship between financial firms
and their customers and could
make it much easier for consumers
to sue over issues like the recent
payment protection insurance mis-
selling scandal.
The amendment has been tabled
by shadow Treasury ministers Chris
Leslie and Cathy Jamieson as well as
Mark Durkan of Northern Irelands
Social Democratic and Labour Party.
ASSET manager Threadneedle has
sacked a trader over a suspected
attempt to carry out a $150m
(95.03m) rogue trade.
The American-owned firm made a
complaint to the City of London
Police after discovering the planned
trade in August last year. It was
stopped before it was completed.
The deal would have been worth
around $150m and is believed to have
been linked to Argentine warrants. A
junior trader in Threadneedles
investment arm was later sacked.
Last night the firm, which man-
ages about 60bn in assets, said no
client money had been lost.
A spokesman said in a statement:
In August 2011, our systems stopped
a suspicious attempted trade. The
matter was immediately reported to
the authorities and the individual
involved was subsequently dis-
missed.
Threadneedle, set up in 1994, has
gone through various owners and is
today part of New York-listed money
manager Ameriprise Financial.
It is not known whether any arrests
have been made over the alleged
rogue trading attempt. Both the
Financial Services Authority and the
police declined to comment yester-
day.
It comes just days after a 44-year-
old man working at Legal & General
Investment Management was arrest-
ed and bailed in the FSAs largest
insider dealing operation.
Searches were also carried out at
one business and two homes in
London and Kent.
Last week LGIM said it was not
aware of any impact on our financial
results. The probe by the regulator
and the Serious Organised Crime
Agency has run for nearly two years.
Kweku Adoboli, the former UBS
trader accuse of a $2.3bn rogue trade,
is due to stand trial later this year. He
denies all the charges.
The regulator is leading a clamp-
down on market abuse before it is
split into two new bodies by George
Osborne.
Trader fired
amid fraud
plan probe
THE PRICE of oil hovered above the
$120 a barrel mark yesterday as more
of Irans trade partners looked to cut
back fuel purchases from the country.
The worlds leading oil trader Vitol
said yesterday it expects instability in
the Middle East to push prices further.
Boss Ian Taylor said: The Iranians
now want the price as high as possible
as theyve got less volumes to sell. I
reckon they are probably quite close to
winning based on the numbers.
Taylor said that an Israeli airstrike
on Iran was one scenario that was like-
ly to push oil prices to $150 a barrel.
As nuclear inspectors wrapped up
meetings in Tehran yesterday, calling
the lack of access disappointing,
key trading partners China, India and
Japan were planning cuts of at least
10 per cent in Iranian crude imports.
LOSSES CAN EXCEED YOUR INITIAL DEPOSIT
DEAL ANY TIME WITH IG
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IN 3 MINUTES
OVERNIGHT
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DEALING
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Oil could hit $150,
says leading trader
FSA body enlists Labour MPs
to ambush financial reform bill
BY PETER EDWARDS
ASSET MANAGEMENT
Soul singer Adele

last night added to
her awards haul at
the 2012 BRIT
Awards in London,
with two gongs for
British female solo
artist and best
album. The 23-year-
old also performed
at the event at the
O2 Arena, which
saw the Foo
Fighters win best
international
group and
Coldplay pick up
best British group.
Picture: GETTY
BY MARION DAKERS
ENERGY
News
BY JULIET SAMUEL
EXCLUSIVE
ADELE CLEANS UP AT THE BRIT AWARDS

EUROPEAN leaders have finally agreed
the terms of the second Greek bailout,
which they hope will bring down the
countrys crushing debt burden and
allow for a long-term shift towards sta-
ble economic growth.
International Monetary Fund (IMF)
boss Christine Lagarde praised the
deal, saying it will create the space
needed to secure improvements in
debt sustainability and competitive-
ness and pave the way for a gradual
resumption of economic growth.
The IMF will back up the bailout,
supporting the Eurozones efforts.
However, the deal is not yet in place
as Greece needs to alter its constitu-
tion to allow international monitors a
permanent place in its government.
Private sector bondholders have
taken a major loss on their invest-
ments; countries which have made
loans to Greece have agreed to charge
a much lower rate of interest; and the
country will be closely monitored to
make sure it sticks to its promises of
lower spending.
Leaders hope the Greek economy
will begin to recover and be able to
finance its own spending by 2014, and
that its debt to GDP ratio will fall from
the current level above 160 per cent
to a more manageable 120.5 per cent
by 2020.
Investors are to take a 53.5 per cent
write-down on their holdings of Greek
debt, and swap the remainder into
Troika bosses
stumble upon
BY TIM WALLACE
EUROZONE
News
4
other assets. They will receive long-
term Greek bonds equivalent to 31.5
per cent of the principle holdings,
plus bonds in the European Financial
Stability Facility worth 15 per cent,
resulting in a total write-down of
around 70 per cent or 107bn.
Other countries have also con-
AT A GLANCE: THE SECOND BAILOUT DEAL
PRIVATE SECTOR HAIRCUT
Private sector bondholders are expected to
take a 53.5 per cent nominal loss, slightly up
from the 50 per cent agreed in October.
This should shave 107bn off privately held
Greek debt.
EUROZONE LENDING RATES CUT
Various Eurozone states have made bilateral
loans to Greece. The rates on these loans
will be reduced to 150 basis points, reduc-
ing the debt-to-GDP ratio by 2.8 percentage
points.
BOND PROFITS RETURNED TO GREECE
Where Eurozone governments central
banks own Greek debt, the equivalent of
any profits accrued from these holdings, up
until 2020, will be paid to Greece wiping
1.8 per cent off the Greek debt ratio.
IMF chief Christine Lagarde praises the bailout
tributed, agreeing to cut the interest
charged on their loans to 150 basis
points. The actual cash being received
by Greece will be held in an escrow
account, which means creditors will
be paid first before money is released
for Greece to spend.
WEALTH MANAGEMENT: P26
* These views are those of the individuals below and not necessarily those of their company
The Greeks need to do
what Argentina did,
when they defaulted.
But the real question is
whether countries
like Germany
and France
are going
to let it
happen.
CITY VIEWS: WILL THIS BE GREECES FINAL BAILOUT?* Interviews by Phoebe Torrance
Focus on Greece
5
finally
a deal
GREEK CUTS TO BE MONITORED
The Eurogroup welcomed 325m of additional
cuts, yet lenders will have a permanent pres-
ence in Athens to oversee reforms and cuts.
AND OF COURSE...THE ACTUAL BAILOUT
On the condition that the Greek government
sticks to its side of the deal, Eurozone states
confirmed a total 130bn bailout, with the IMF
expected to chip in.
Europe is just
throwing good
money after bad
EUROZONE finance ministers
have obviously opted out of the
working time directive. It took
them thirteen hours to hammer
out the terms of Greeces latest
bailout on Monday night. Like
teenagers, they only seem able to
achieve anything in the wee small
hours, when most sensible adults
are asleep. But even a teenager
could tell you this latest rescue
plan is doomed to failure.
That is because the fiscal
assumptions upon which the
bailout is predicated are straight
out of La La Land. The European
Commissions debt sustainability
analysis forecasts that Greeces
debt-to-GDP ratio will fall to 129
per cent of GDP by 2020. This is
higher than the 120 per cent tar-
get but still wildly optimistic.
It is based on the belief that the
Greek economy, which contracted
by a painful 6.1 per cent last year,
will bounce back remarkably
quickly. This year, the EC expects
GDP to contract by 4.3 per cent
before flatlining in 2013. It then
pencils in laughable growth of 2.3
per cent in 2014 and 2.9 per cent
in 2015. To put that in context,
the Office of Budget
Responsibility expects Britains
much-stronger economy to grow
by an only slightly higher 3.1 per
cent in 2014-15.
The projections assume that
Greece has the political will and
operational ability to achieve the
virtually impossible: a massive
internal devaluation that boosts
competitiveness within the strait-
jacket of the euro.
At any rate, the bailout cash
only gets Greece through to 2014,
when it must return to markets.
After yesterdays haircut, no one
in their right mind is going to buy
the countrys debt for the best
part of a decade.
All that Europe buys for its
130bn is time. It is throwing
good money after bad.
BOTTOMLINE
Analysis by David Crow
Leaders hail agreement yet
sustainability still in doubt
ASHRAF
ELGARF
IG GROUP
I suspect this wont be
the last time that
Greece asks for a
bailout. I dont think
they understand the size
of their debt,
even with
the 130bn
of sup-
port.
GREG
DAVIS
DETICA
No way. Greeces econo-
my is broken; the money
the Eurozone has given
is nowhere near enough.
The best thing to do is
get them to
leave the euro
so they can
have a clean
slate.
JAY
RAO
WHITEHORSE TRADING
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GREECES finance minister hailed the
countrys latest bailout deal yesterday,
saying that politicians had avoided a
nightmare scenario.
It is maybe the most important
[deal] in Greeces post-war history,
Evangelos Venizelos argued, welcom-
ing the long-term support that he
says will enable Greece to stay in the
Eurozone.
Yet research by the troika of main
lenders the European Union,
European Central Bank and
International Monetary Fund
showed that there remains an uphill
struggle to save Greece from any
future default.
There is a fundamental tension
between the programme objectives of
reducing debt and improving compet-
itiveness, in that the internal devalua-
tion needed to restore Greeces
competitiveness will inevitably lead to
a higher debt to GDP ratio in the near
term, the analysis said.
Given the risks, the Greek pro-
gramme may thus remain accident-
prone, with questions about
BY JULIAN HARRIS
EUROZONE
much higher debt trajectory, the

research found, leaving debt as high
as 160 per cent of GDP in 2020.
The troika aims to slash Greek debt
to the equivalent of 120 per cent of
GDP by 2020, yet the plans rely on
Greece returning to healthy growth.
sustainability hanging over it.
Delays to the required structural
reforms and privatisations would
pose a particular risk to the strategy of
getting Greece back on track, it said.
Hold-ups in the implementation of
agreed reforms would result in a
Evangelos Venizelos (left) praised the deal, sealed by PM Lucas Papdemos (right)
as Jean-Claude Juncker looks on Pic: GETTY
PRIVATE holders of Greeces debt final-
ly agreed a proposal for a bond swap
with the stricken country yesterday,
which will see the value of their bonds
written down by over 70 per cent.
The Institute of International
Finance (IIF), which represents 32
Greek creditors, unveiled the outlines
of a deal yesterday that they said could
knock 107bn (89bn) off Greeces
340bn debt pile.
If Athens and Greeces creditors sign
up, the deal would see a 53.5 per cent
haircut on the up-front value of the
bonds in addition to changes in their
interest payments that would effec-
tively bring their net present value
down by just over 70 per cent.
Those changes include creditors
receiving new long-term Greek bonds
equivalent to 31.5 per cent of the prin-
cipal value of their current holdings
and short-dated bonds issued by the
Eurozone bailout fund, the European
Financial Stability Facility, equal in
value to 15 per cent of the principal.
Greece must now thrash out the
terms and conditions of the deal.
Crucially, Athens will have to decide
whether and how to force the deal on
private creditors who do not want to
participate by introducing retrospec-
tive collective action clauses on its
debt.
Having previously said that 95 per
cent of creditors would have to agree
in order for the deal to be imposed on
the remainder, Greece is now reported
to be considering a much lower
threshold of 66 per cent acceptance in
order to coerce the other third.
The IIF says its members represent
more than half of Greeces private
debt-holders, but is not sure how many
will sign up voluntarily.
The deal must also be hastily rati-
fied by 17 Eurozone states in order to
avoid a disorderly default by Greece on
20 March, when 14.5bn in bonds
come due. The deadline is extremely
tight: equivalent deals in the private
sector are normally executed over a
period of at least a month.
Greeces debt
holders unveil
exchange deal
ANGER in Greece has escalated over
the countrys deal with its lenders
an agreement that will require
changes to the Greek constitution,
and see a foreign task force sta-
tioned in Athens to oversee condition-
al reforms and spending cuts.
Support for the main coalition par-
ties, which led negotiations over the
deal, has sunk in recent weeks and is
expected to dip further after a series
of protests that ended in violence and
arson in the Greek capital.
Backing for the conservative New
Democracy party dipped under 20 per
cent in a recent poll by GPO, while
PASOK fell to 13.1 per cent both
down around two percentage points
since the end of last year.
Socialist parties that have spoken
out against the bailout deal, such as
the Left Coalition and the Democratic
Left have gained support.
The erosion of Greek sovereignty
has led to some analysts to question
whether the arrangement can be sus-
tained.
Phillip Souta, head of Business for
New Europe, said the deal had elimi-
nated the risk of default, yet warned:
The deal however involves an
unprecedented level of intervention
in the running of Greeces economy.
It is impossible to know for certain
if Greek society will be able to bear
this, Souta added.
Foreign inspection of Athens provokes
opposition to new rescue agreement
The New Democracy party, led by Antonis Samaras, has seen a fall in popularity because it supported the Greek deal Picture: GETTY
BY JULIET SAMUEL
EUROZONE
News
BY JULIAN HARRIS
EUROZONE
CUSTOM IG APPS FOR

of GDP by 2020 if reforms slip
bailout... and things have got worse
Its less than two years since the first
110bn
of GDP
Current Greek debt is nearly
170%
News
bailout until 2014
130bn
in Greek cuts
An additional
325m
Private sector haircut of
Cut interest on loans from Eurozone states to
53.5%
1.5%
Greek debt could still be at
160%
2010 2012 2014 2016 2018 2020
4
3
2
1
0
-1
-3
-5
-2
-4
-6
-7
-8
%
PoliticsHome.com PoliticsHome.com
Apply to join today at
www.cityam.com/panel
In partnership with
Did Brussels
get it right
this time?
So Greece has secured a second
bailout in the latest effort by the
Eurozone to deal with the escalat-
ing debt crisis.
We are asking members of our
Voice of the City panel, run with
PoliticsHome.com, if they think
the deal will work.
Is this the beginning of a bright
new start for Greece, or are the
Europeans still kicking the can
down the boulevard?
Must Greece be kept in the sin-
gle currency or would it be better
off going alone?
To answer these questions and
more, you can apply to join the
panel at cityam.com/panel
Angela Merkels ministers pushed for
Greece to accept fresh reforms and cuts
PLANS FOR GREEK SUSTAINABILITY
RELY ON A QUICK RETURN TO GROWTH
Lenders distrust Greece to
implement reforms, and will
station themselves in Athens
to check on progress as
requested by Dutch
politician Jan Kees de Jager
The popularity of pro-
bailout coalition parties
has plummeted, the two
main groups sinking two
percentage points in the
polls since December
Morgan Sindall
firm is hopeful
BY KASMIRA JEFFORD
CONSTRUCTION
REGENERATION and construction

firm Morgan Sindall said it was con-
fident it could grow the business
against a backdrop of tough market
conditions, as the group unveiled a
12 per cent drop in profits.
Profits before tax and exceptional
items fell to 45.3m last year com-
pared with 51.3m the previous year
while revenues rose six per cent to
2.2bn.
The group, which is involved in
Crossrail, has been reducing its expo-
sure to public-sector related work as
the governments austerity cuts and
AMEC yesterday announced a 400m
share buyback and hiked its dividend
on the strength of its 2011 profits.
The engineer, which is a consult-
ant to energy industry big hitters
including Centrica and
ConocoPhillips, said it had been
buoyed by a string of acquisitions
and was on the hunt for more.
AMEC posted full-year earnings
before interest, tax and amortisation
(Ebitda) of 299m, 12 per cent higher
than in 2010.
The company is debt free and has
been lining up a buyback for some
time.
A strong performance in the North
Sea, a contract win on the decommis-
sioning of Sellafield nuclear plant in
northern England, plus a 21 per cent
jump in earnings in the part of
AMECs business which provides con-
sulting and engineering for
environmental and water
projects, helped boost prof-
its.
Chief financial officer Ian
McHoul told City A.M:
Commodities have been hot
and that has given us a boost.
We see this trend continu-
ing. Acquisitions have
really helped us as has
the fact that we have
such a diversified
business.
When some parts
of the business are
HIGH
SPEED
BY JOHN DUNNE
ENGINEERING
News
8
not performing, others are.
He added that the surging oil
price triggered by Middle
Eastern unrest has
helped stoke the
companys profits.
AMEC, which
said the buyback
would take
place over 12
Chief executive Samir Brikho (inset) is upbeat
Amecin 400m
Executive chairman John Morgan
Tarmac merger under
THE Competition Commission (CC)
said a proposed joint venture
between Anglo American and Lafarge
in Britain could damage competition
for construction materials in some
markets.
Having struggled for more than
three years to find a buyer for its
Tarmac UK unit, which it bought as
part of the larger Tarmac group in
2000, Anglo last year agreed to merge
Tarmac UK with Lafarges own UK
cement, aggregates, concrete and
asphalt businesses in a 50-50 joint
venture.
However, the CC yesterday said the
venture could lead to a substantial
lessening of competition for the sup-
ply of materials including bulk
cement, rail ballast and asphalt in
certain markets.
The commission said it was now
consulting on the possible actions it
could take in response, which could
include a forced sale of some or all of
the business.
It said it would publish a list of pos-
sible remedies, outlining the way
that anti-competitive effects of the
BY HARRY BANKS
CONSTRUCTION
profits slide 12 per cent but

about regeneration projects
DEAL EFFICIENTLY WITH IG
News
9
buyback plan
months, also said it planned to lift its
full year dividend to 30.5p per share
from the 26.5p in 2010.
McHoul said that despite the buy-
back, the company had acquisitions in
its sights and would not run away
from debt to bankroll them.
Debt is not a bad thing we have a
strong balance sheet and are looking
for the right opportunities.
fire from regulators
joint venture could be prevented, and
would accept comments by 13 March.
In bulk cement there are current-
ly only four UK producers, and there
is evidence that the market is not as
competitive as it could be, the CC
said.
Prices and profit margins havent
been affected in the way we would
have expected following the big falls
in the demand for cement in the past
few years.
We are concerned that the pro-
posed tie-up would increase the sus-
ceptibility of this market to
coordination. Tarmac chief executive Terry Last
The team from Deutsche Bank
advising AMEC on its buyback was
led from London by chairman of UK
corporate broking James Agnew.
He also advised AMEC on its 173m
takeover bid for MACTEC in May
last year. A veteran banker, Agnew
currently sits on the Takeover Panel
and has had a prolific City career. He
also advised Kraft on its bid for
Cadbury. He joined Deutsche in
2002, having previously been head
of corporate broking at Merrill
Lynch from 1995. Mark Astaire at
Bank of America Merrill Lynch was
joint adviser to Amec.
DEUTSCHE BANK
JAMES
AGNEW
UK CORPPRATE
BROKING
ANALYSIS l AMEC PLC
21 Feb 16Feb 15Feb 17Feb 20Feb
1,110
1,120
1,100
1,090
1,080
1,111.00
21 Feb
fierce competition for projects hurt
margins at its construction and
infrastructure division, where prof-
its declined fell 22 per cent to
21.1m.
Executive chairman John Morgan,
who founded the company in 1977,
said the company has instead been
focusing on expanding its regenera-
tion pipeline of work in partnership
mainly with local authorities.
Morgan Sindall is involved in 30-
40 regeneration projects and hopes
to capitalise on the release of public
sector land the government is
pushing the release of land assets
such as car parks from public bodies
to fund regeneration.
The group urban regeneration
arm doubled its profits to 3.9m and
grew its pipeline of project from
1.4bn to 2.4bn including preferred
bidder positions.
Overall we think next year will be
much the same as this year but we
do have confidence that we can grow
our business even if the market does-
nt improve, from these regeneration
projects that we have already won,
he said.
In 2010 the groups affordable
housing division, Lovell
Partnerships, bought Connaughts
troubled social housing mainte-
nance division out of administra-
tion, saving 2,500 jobs.
THE GOVERNMENTS deficit reduction
plan is well ahead of schedule, with an
unexpectedly large surplus in January
bringing down the years projected
borrowing figures, data from the
Office for National Statistics (ONS)
showed yesterday.
The surplus hit 7.75bn in the
month, up from 5.20bn last January,
and taking borrowing in the financial
year so far to 93.5bn down 15.7bn
on the same period of last year.
Such a fall in the deficit puts full-
year borrowing on track to beat the
Office for Budget Responsibilitys
(OBR) 127.1bn forecast by 7bn.
Januarys receipts are the highest
each year, and revenues rose to
60.89bn, up 2.77 per cent from
59.25bn in January 2011, while cur-
rent spending increased three per cent
on the year to 50.72bn in January.
Although this years borrowing will
be lower than forecast, economists are
urging chancellor George Osborne to
resist the urge to spend the 7bn extra
at next months budget.
The recent move by Moodys rating
agency to lower the UK's credit rating
outlook to negative from stable has
brought to the fore the UK's vulnerable
position and the importance of fiscal
sustainability, said Barclays Capitals
Blerina Uruci.
UK is ahead of
deficit target
BY TIM WALLACE
UK ECONOMY
ECONOMIC activity stayed above its

trend rate in January, according to
the Chicago Feds activity index pub-
lished yesterday.
Though the index fell to 0.22 from
0.54 in December, it continued to
point to economic growth, with the
three-month moving average rising
from 0.06 to 0.14.
Any figure below zero indicates
below-trend growth.
Employment growth appeared
strong at 0.6, while the unemploy-
ment rate fell from 8.6 per cent to 8.3
per cent.
The index also pointed to subdued
inflationary pressures over the year.
Meanwhile the Japanese all indus-
try recovery index rose as the recov-
ery continued, up 1.3 per cent in
January compared to minus one per
cent in December.
Economic activity kept on rising
through January in US and Japan
WORLD ECONOMY
CUTTING the budget deficit is the

biggest step the government can take
to boost business confidence and pro-
mote economic recovery, the
Confederation for British Industry
(CBI) said today, arguing that while
tweaks to taxes can help firms, the
government should restrain from a
budget spending splurge.
New measures introduced at the
Budget next month should seek to
make the UK a more attractive place to
invest and do business, said CBI boss
John Cridland, rather than providing a
fiscal stimulus, which would risk the
governments good reputation.
He called on George Osborne to sim-
plify the controlled foreign companies
regime, making it easier for overseas
firms to invest in the UK, and for red
tape around green taxes to be axed.
The CBI also hit out at Labours Ed
Balls, claiming any additional spend-
ing should be put into infrastructure,
where it would boost economic
growth, rather than a VAT cut which
would boost savings and, in part, be
spent on imports.
However, the government did
receive some criticism, too in partic-
ular the CBI fears cabinet ministers
attacks on banks, combined with a
focus on reducing immigration, risks
making the country look anti-busi-
ness, which may reduce foreign invest-
ment in the UK.
CBI: Cut red tape and boost
infrastructure to help growth
BY TIM WALLACE
UK ECONOMY
News
BEAN: LOOSE POLICY IS THE ONLY WAY
Savers who have been hurt by low interest rates have every right to feel aggrieved at los-
ing out, said the Bank of Englands Charlie Bean in a speech last night. However, they
must remember low interest rates boost economic activity and create jobs for people who
also did nothing to create the financial crisis, he said, arguing monetary loosening
and fiscal tightening are the best responses to current conditions. Picture: GETTY
ANALYSIS l Borrowing is set to be lower
than expected
billion
2010-11
Public sector net
borrowing excluding
financial interventions
2011-12
2011-12
PSNB
ex OBR
forecast
Jun Sep Dec Mar
180
160
140
120
100
80
60
40
20
0
SHARES in Dutch delivery firm
TNT Express fell by almost three
per cent yesterday after it said it
was planning to curb its interna-
tional expansion plans in the
wake of a net loss of 173m
(145m) for the fourth quarter.
Despite pushing for a higher
price from potential suitor UPS
whose 9 per share offer it reject-
ed last week TNT admitted yes-
terday it was reducing its
exposure to emerging markets in
China and Brazil, where it will
instead forge local partnerships.
We will reduce our exposure to
fixed intercontinental capacity
through cooperation agreements
with leading airlines and we will
explore partnership opportunities
for our domestic activities in
Brazil and China, said chief exec-
utive Marie-Christine Lombard.
Revenue growth of 2.3 per cent
in the fourth quarter helped boost
full-year revenues to 7.2bn, but
the firms overall operating loss
for 2011 was still 105m, which it
put down to operating losses in
Brazil and challenging Asia-
Europe trading conditions.
The firm said it is targeting
150m of fixed cost reductions by
end of 2013.
TNT declined to provide an
update on the UPS bid as share-
holders continued to hold out for
a higher bid, but analysts specu-
lated yesterday that rival FedEx
could also enter the fray.
TNT silent over UPS
bid as losses mount
BY ELIZABETH FOURNIER
CONSUMER
News
NEWS | IN BRIEF
Ericsson takes in BelAir
Swedish telecoms firm Ericsson is to
buy privately-held WiFi technology
firm BelAir Networks as part of its
plan to boost its mobile broadband
offering. BelAir, which produces indoor
and outdoor WiFi systems for tele-
coms operators that allow people to
surf the internet without a physical
coupling to a network, has 120 staff.
Ericsson did not give any financial
details of the deal.
Colliers extends bid deadline
Property services group Colliers
International has agreed to extends its
put up or shut up deadline for its
majority shareholder Firstservice
Corporation to make a bid for its trou-
bled UK arm. The firm had a deadline
of 5pm yesterday to make a formal
offer according to Takeover Panel
rules, but Colliers has extended the
deadline for Firstservice to 20 March.
MORE NEWS
ONLINE AT
@
@
www.cityam.com
EUROPEAN bond activity is show-
ing signs of recovery, with corpo-
rate debt issues so far in 2012
worth $75bn (47bn), an increase
of 83 per cent on the same period
last year, according to data from
Thomson Reuters.
The data suggests that compa-
nies that struggle to borrow from
banks are instead turning to capi-
tal markets for fundraising. They
can benefit from good liquidity
and a quicker closing process.
January 2012 saw European
firms raise $48bn, the strongest
month since March 2011 issuance
in the first three weeks of this
month is already up 68 per cent
on February 2011.
The biggest single borrower was
brewer SABMiller, which raised
$6.9bn, followed by over $3bn
each for oil giant BP and car man-
ufacturer BMW.
And yesterday, mining group
BHP Billiton launched a $5.25bn
bond sale.
German, UK and French borrow-
ers accounted for 69 per cent of all
European corporate bond issuance.
European corporate debt issues up
as banks struggle to provide funds
CAPITAL MARKETS
ANALYSIS l European corporate debt

volumes soared in January
Proceeds
(US$bn) Proceeds
(US$bn)
No. Issues
No. Issues
J
a
n
1
1
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
v
D
e
c
J
a
n
1
2
F
e
b
60 80
70
60
50
40
30
20
10
0
50
40
30
10
0
20
TNT chief executive
Marie-Christine
Lombard said the
group would focus on
European operations
G
r
a
p
h
i
c
: T
h
o
m
s
o
n

R
e
u
t
e
r
s
www.thomascooklondon2012.com/corporate-breaks
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ASDA, owned by US retailer Wal-Mart
Stores, yesterday posted a slowdown in
sales growth in its fiscal fourth quar-
ter as shoppers cut back due to rising
prices, muted wages growth and an
uncertain economic outlook.
Chief executive Andy Clarke said he
was instinctively optimistic about
prospects in 2012 but said it was too
early to say if positive recent data on
the UK economy represented a turn-
ing point or was merely a blip.
Britains second-biggest supermar-
ket chain behind Tesco said sales at
stores open more than a year, exclud-
ing fuel and VAT sales tax, rose one per
cent in the 14 weeks to 7 January.
That followed a 1.3 per cent increase
in the third quarter, but compared
favourably with many of its rivals,
prompting Clarke to tell reporters:
We were the clear winners at
Christmas, we won Christmas.
Asda said underlying sales rose just
0.1 per cent in the last three months of
2011, followed by a surge in demand in
the first week of January, when British
shops traditionally offer unsold stock
at cheaper prices.
Its parent company Wal-Mart said
yesterday that price cuts had hit its
fourth-quarter profit, but that it plans
to trim prices further in the coming
months, a move that is expected to
keep shrinking margins.
The companys shares, up more
than 29 per cent since August, fell 4.2
per cent in early trading, erasing the
gains seen so far in 2012.
Wal-Marts quarterly profit and sales
fell short of Wall Street expectations.
While price cuts in the US helped
bring in more customers during the
crucial holiday season, those cus-
tomers did not spend as much as
investors had hoped.
Wal-Mart US posted a 1.5 per cent
increase in sales at stores open at least
a year. It was the second quarter in a
row that Walmart US same-store sales
rose after nine consecutive declines.
Sales slow at
Asda but boss
stays upbeat
BY HARRY BANKS
RETAIL
Dell shares fell after hours yesterday

after the tech firm forecast fiscal first-
quarter revenue below Wall Street's
expectations, stoking fears the PC
industry has not fully emerged from
its downturn.
The worlds third-biggest personal
computer maker projected sales would
be down seven per cent this quarter
from the previous quarter, when it
posted revenue of $16bn.
Dells fiscal fourth quarter earnings
also came in below Wall Streets view,
with net income down 18 per cent to
$764m (484m).
TEMENOS insisted yesterday its plan
to merge with British banking soft-
ware group Misys presents the best
deal for both sides, despite the rival
offer from Vista Equity Partners on
Monday.
Swiss-based Temenos, which report-
ed a 35 per cent fall in fourth quarter
adjusted profits to $35.2m (22.3m),
said the merger would give enhanced
scale and growth prospects along
with significant cost synergies.
Temeos added that its presence
banking, wealth management and
business intelligence complements
Misys core operations.
The firm said its revenues fell 15 per
cent on last year to $127m in the quar-
ter, as the Eurozone crisis made its
banking customers reluctant to
spend.
Dell disappoints
with glum view
Misys suitor talks
up its merger bid
BY MARION DAKERS
M&A
TECHNOLOGY
News
NEWS | IN BRIEF
Kraft forecasts earnings growth
Kraft Foods has forecast earnings
growth of at least nine per cent this year
even as it prunes its portfolio of North
American brands. Kraft, due to split in
two this year, forecast 2012 net revenue
growth of about five per cent, including a
hit of up to one percentage point from
product pruning in North America. It
said net income was $830m in the fourth
quarter, up from $540m a year earlier.
Macys expects sales gains
Macy's expects further sales gains this
year, helped by the broad array of exclusive
and private brands that led to a higher
profit in the holiday quarter. For the new
fiscal year just under way, Macy's expects
sales at stores open at least a year to rise
3.5 per cent. Macy's reported net income of
$745m for the fourth quarter to 28
January, up 11.7 per cent.
Home Depot beats Street forecast
Home Depot quarterly results have beaten
Wall Street estimates as a warm winter
boosted sales at the worlds largest home
improvement chain by pulling some spring
demand forward. Home Depots quarterly
sales rose 5.9 per cent to $16.01bn
(10.2bn) in the fourth quarter ended on
29 January, well ahead of the analysts
average estimate of $15.51bn.
Tesco changes tack on job scheme
Supermarket giant Tesco yesterday agreed
to start paying young people taking part in
the governments work experience scheme,
in a bid to halt growing complaints about
the programme. Tesco had been advertis-
ing long-term, unpaid positions for those on
jobseekers allowance.
ANALYSIS l Wal-Mart Stores Inc
$
62.00
61.50
62.50
61.00
60.50
60.00
60.07
21 Feb
Misys chief executive Mike Lawrie has received competing bids for the company
Yandex to show new tweets
Twitter has joined hands with Yandex
in a deal to allow Russias top search
engine to display new tweets almost
instantly in the results it brings up.
While the companies declined to give
financial details of their partnership, a
similar deal saw Microsoft whose
search engine Bing has less than one
percentage point more market share
than Yandex pay Twitter around
$30m (19m). The micro-blogging site
used to have a similar deal with
Google before the search engine
pulled out in favour of its own social
network Google+.
Genus boosted
Genus shares
have jumped
two per
cent as
the
ani-
mal
genetics company reported a 25 per
cent rise in pre-tax profits to 23.3m
and announced an interim dividend.
iPhone encroaches on China
Apple is set to boost its flagging share
of the worlds biggest mobile phone
market, as the iPhone becomes avail-
able on network provider China
Telecom from next month. Last quarter
Apple ranked just fifth in China with 7.5
per cent of the smartphone market,
pipped by local firms ZTE and Huawei.
However, China Telecom is
expected to sell about
1.5m iPhones this year,
rising to up to 4m in
2013. Apple has
signed up two
of Chinas
top three
carriers,
but not
China
Mobile.
NEWS | IN BRIEF
EVERYTHING EVERYWHERE has
pledged to invest at least 1.5bn over
the next three years in improving net-
work speed, reliability and coverage.
The promise, first reported by City
A.M. in December, came as the hybrid
telecoms group reported a 2.1 per
cent annual increase in underlying
service revenue due to high demand
for data plans. Adjusted pre-tax earn-
ings grew 2.4 per cent to 1.42bn.
But the British company lost 259m
in 2011 due to regulators slashing the
amount mobile operators can charge
each other for use of their lines, drag-
ging total service revenue for the year
down 2.1 per cent to 6.17bn.
Everything Everywhere boss Olaf
Swantee said he expects this regulato-
ry pressure to continue well into 2013.
Formed in 2010 by the fusion of UK
brands T-Mobile and Orange, the tele-
coms giant signed up 313,000 new con-
tract customers in the fourth quarter
and said 69 per cent of its post-paid
users are now on smartphone, com-
pared to 51 per cent a year ago.
This boosted revenue from non-mes-
saging data eight percentage points,
meaning it now makes up 24 per cent
of average revenue per user.
Swantee told City A.M.: We are just
at the start of a data revolution.
As the largest network operator in
the market, it is our duty to start build-
ing a new digital background for the
UK. Britain needs to step up.
He added: It will be a great boost
for the UK economy in the current
climate, telecoms is one of the few
industries where companies are invest-
ing more now than in the past.
Everything
Everywheres
vow to invest
Olympus in mourning as India boss
Omori found hanged at Delhi home
A SENIOR executive at troubled cam-
era firm Olympus issued an apology
before apparently committing suicide
outside his home in Delhi.
Tsutomu Omori, 49, head of the
companys medical equipment busi-
ness in India, was found hanging,
police said yesterday. His body was
apparently discovered in a garden or
park near his upmarket flat in the
Gurgaon area of Delhi.
Handwritten notes in English and
Japanese were discovered at his home,
police said. The English note said I am
sorry for bothering you, but the other
has not yet been translated.
Lal Singh, investigating officer of
Gurgaon Police said: At this stage of
the probe, it looks like he committed
suicide. One of his company executives
told us he was depressed for the last
two weeks.
There was no immediate suggestion
the death of Omori, believed to have
occurred late on Sunday night, was
linked to the $1.7bn (1.08bn) account-
ing scandal that has stunned corpo-
rate Japan, led to the arrest of senior
executives in Tokyo and prompted the
sacking of Michael Woodford, the
British former chief executive, who
acted as whistleblower.
An official at the Japanese embassy
said the cause of Omoris death is
being investigated by the Indian
authorities.
It comes in another turbulent week
for Olympus with Western investors
accusing its banks of trying to take
control of the boardroom by stealth.
The firms major creditors have
showed signs they may want to choose
who fills the vacant seats on the board.
More executives are set to resign at a
shareholders meeting in April.
BY LAUREN DAVIDSON
TELECOMS
PAYPAL, the online payment facilita-

tor, plans to create one thousand
new jobs in Dublin by establishing a
new operations centre in the Irish
capital by July.
The eBay subsidiary has held its
European headquarters in Dublin,
where it already employs up to 1,500
staff, since 2003.
Taoiseach Enda Kenny welcomed
the move, calling it a clear recogni-
tion of the opportunities that
Ireland offers global leaders like
PayPal.
Our action plan on jobs pub-
lished last week will help to ensure
that this is just the first of many sim-
ilar announcements over the coming
year, he added.
Irish unemployment has more
than trebled to 14.2 per cent follow-
ing the financial crisis.
US companies accounted for 38
per cent of offices bought or rented
in Dublin last year, according to the
CBRE.
PayPals new centre will focus on
customer service and sales across
Europe, the Middle East and Africa.
PayPal expands
Irish office with
1,000 new jobs
TECHNOLOGY
News
Chief executive Olaf Swantee called for a digital overhaul in Britain Pictures: REUTERS
ANALYSIS l Olympus Corp
JPY
1,290
1,300
1,280
1,320
1,310
1,270
1,260
1,309
21 Feb
BY PETER EDWARDS
TECHNOLOGY
News
SEGRO, the industrial property devel-
oper, said that it was hit by a 9.6 per
cent decline in its net asset value (NAV)
last year after bigger-than-forecast
write-downs on its portfolio.
The real estate investment trust said
its NAV per share fell to 340p after the
group wrote down the value of its non-
core assets by 187m. Analysts had
been expecting a write-down of
around 160m.
Segro announced plans in
November to focus its UK multi-let
industrial portfolio on London and
south east and dispose of non-core
assets across Europe worth about
1.6bn over the next three years.
Analysts said the increase in write-
downs reflected the difficulty to sell
the six larger assets in the portfolio.
The group completed the sale of five
smaller UK assets yesterday to Ignis
Asset Management for 80.2m, adding
to the 111m sales completed in 2011.
We have got a number of negotia-
tions ongoing so we expect to be able
to make 300-500m of disposals this
year, chief executive David Sleath told
City A.M.
On the operational side, the picture
was brighter. Sleath said void rates fell
below 10 per cent for the first time in
four years, from 10.2 to 9.1 per cent in
the fourth quarter of 2011.
Underlying pre-tax profit rose 8.8
per cent to 138.5m while earnings
per share rose 7.6 per cent to 18.4p.
Segro asset
value hit by
write-downs
BY KASMIRA JEFFORD
PROPERTY
BNP PARIBAS Real Estate enjoyed a

strong performance in 2011 despite
tougher market conditions, posting an
11 per cent rise in operating profits to
156m (130.8m).
The real estate advisory arm of
Frances biggest listed bank which
posted full-year profits of 6bn last
week said turnover increased by six
per cent to 658m in the period.
The group, which derives 64 per
cent of its revenues from France, 11
per cent from Germany and 11 per
cent from the UK, said its commercial
property development generated
record business volumes of 851m, up
78 per cent compared to 2010.
Its transactional business grew
turnover by nine per cent to 176m in
the year, with France accounting for 51
per cent.
Philippe Zivkovic, President of BNP
Paribas Real Estate, warned 2012 will
be a more complex year but pointed
to undeniable advantages including
its strong property development
pipeline for offices and residential.
The firm was appointed last year to
lease Stratfords International Quarter
by LendLease and the Olympic Legacy
and also transacted on three of the
biggest deals in London, including
acquiring space for the European
Medicines Agency in Canary Wharf.
Strong profits
at BNP Paribas
Real Estate
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ANALYST VIEWS: WERE SEGROS RESULTS ON
TRACK? Interviews by Kasmira Jefford
LI SUN | ORIEL SECURITIES

Segro reported solid results although adjusted net asset value of 340p
was below our estimate of 352p due to higher than expected non-core asset write-
down. Underlying operation remains solid with small improvements to occupancy and
retention rate... We retain add.
MIKE BESSELL | INVESTEC

Segros results were in line with our expectations...Fundamentally the
story is playing out as guided during the investor day in autumn. We had been
buyers for the income growth and dividend yield, and nothing in the headline
changes this view.
JAMES CARSWELL | PEEL HUNT

Segros final result, preceding its substantial and detailed portfolio
restructure in November is again disappointing. The divestment and re-investment
into higher grade logistics and data centres, will, we expect, be managed careful-
ly to preserve the dividend cover.
BNP was appointed to lease Aldgate Tower

STOCK EXCHANGE BLOCKS STELIOS
FROM AIRING HIS LATEST ATTACK
EASYJET founder Sir Stelios Haji-
Ioannou has never been shy about
letting the airlines management
know what he really thinks.
But yesterdays attack on chairman
Mike Rakes team, in which he paints
EasyJet lawyers Herbert Smith in an
unflattering light, was the straw that
broke the London Stock Exchanges
back it refused to publish the media
statement without a full rewrite.
EasyGroup conceded there may
have been a couple of areas to bother
the exchange in the diatribe released
two days before the EasyJet AGM.
Dismissing the law firms request
for full details of voting arrange-
ments between Stelios and his sib-
lings as frivolous and vexatious was
one of them. What I found utterly
distasteful was Herbert Smiths
implied threat of legal proceedings if
I did not answer their outrageous and
intrusive questions, wrote Stelios.
Shareholder Standard Life, mean-
while, should abstain from voting at
tomorrows AGM because it is con-
flicted by EasyJets extensive pur-
chase of Airbus aircraft. The
situation is beginning to feel like
one of Putins elections in Russia,
according to Stelios.
EasyGroup said it would lose the
statements more contentious phrases
following a conference call between
the RNS legal team and the firms PR
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
adviser Citigate, but refused to issue a
new draft. Its Stelios being Stelios,
said a source. He is one of the larger-
than-life characters in the British busi-
ness world.
Herbert Smith and the LSE
declined to comment.
FORD ON BOARD
THERE has been some speculation
that Stephen Ford of Hoare Govett,
one of the firms top salesmen, would
not be joining his new employers at
Jefferies, the US group that has taken
on the broker from RBS.
But Ford, speaking from his new
Jefferies offices, yesterday put that
idle chatter to rest. I am fully com-
mitted to the new owners and very
happy to be on board, he said.
Everyone has been very welcoming.
PRIVATE DINING
SPOTTED dining in one of RBS-owned
Coutts private dining rooms yester-
day: Coutts & Co chief executive
Michael Morley and chairman Lord
Home. No doubt there was plenty to
chew over ahead of RBS newsworthy
annual results tomorrow.
EasyJet founder Sir Stelios Haji-Ioannou Picture: GETTY
RATHBONE Brothers shrugged off
concern over the Eurozone to post a
20 per cent rise in profits for last year.
The genteel wealth manager,
whose origins go back to 1742, said
global output is continuing to grow
and there are small signs of
improvement in some developed
economies.
Rathbones, which has a banking
licence, pulled its money from
Spanish and Italian banks and invest-
ed in British treasury bills. Chief exec-
utive Andy Pomfret told City A.M. that
international investments had felt
the impact of the Eurozone crisis but
struck an otherwise bullish tone.
There is no doubt that the uncer-
tainties over Europe persist but these
are balanced by indications that the
world economy continues to grow
and some developed economies are
showing small signs of improve-
ment, he said.
Rathbones posted underlying pre-
tax profit of 46.2m for the year to 31
December, stripping out exceptional
items such as 3m on relocating all
its London staff to a single Mayfair
office and gains from the disposal of
financial securities.
The board recommended a 29p
final dividend for 2011, bringing the
total for the year to 46p, compared
with 44p a year earlier.
Total funds under management
inched up 1.4 per cent to 15.85bn
during a turbulent year for the sector.
Rathbones in
profit despite
Europe drama
FORMER IMF chief Dominique Strauss-
Kahn was questioned by police yester-
day over his dealings with an alleged
prostitution ring that was run from
the northern French city of Lille and
organised sex parties in Paris, Brussels
and Washington.
Strauss-Kahn was to remain in
police custody overnight. The investi-
gation is focused on a prostitution
ring that allegedly supplied clients of
Lilles luxury Carlton hotel. Police
want to establish whether Strauss-
Kahn knew that women at parties he
attended were prostitutes.
He could be deemed free of suspi-
cion, or may be placed under formal
investigation for benefitting from
misappropriated company funds if
investigators conclude that he attend-
ed sex sessions with prostitutes that
were paid for by company executives
using expense accounts.
Strauss-Kahn grilled in
Paris prostitutes inquiry
Rape charges against Strauss-Kahn, later dropped, ended his IMF career Pic: GETTY
BY PETER EDWARDS
BANKING
News
CITYA.M. 22 FEBRUARY 2012
BY HARRY BANKS
POLITICS
19
ANALYSIS l Rathbone Brothers
p
1,300
1,280
1,320
1,260
1,240
1,275.00
21 Feb
NEWS | IN BRIEF
Four bids for Edinburgh airport
Ferrovial, the owner of British airports
operator BAA, has produced a four-
strong shortlist of bidders for its
Edinburgh airport and will accept final
offers in early April, according to
reports. Global Infrastructure Partners,
JP Morgan Asset Management and con-
sortia led by Carlyle Group and 3i are
believed to have made the cut. BAA is
being forced to sell the airport in the
wake of a competition ruling. Analysts
say it is worth 500m-700m.
Alibaba bids to delist subsidiary
Chinese e-commerce firm Alibaba has
offered around $2.5bn to take its Hong
Kong-listed Alibaba.com unit private,
stressing the move was unrelated to any
possible deal to buy back shares owned
by Yahoo. Alibaba Group is offering
investors HK$13.50 (1.10) in cash per
share to take Alibaba.com private, the
same price as at the company's IPO in
2007. Jack Ma, chairman of Alibaba
Group, said: Taking Alibaba.com private
will allow our company to make long-
term decisions that are in the best inter-
est of our customers and that are also
free from the pressures that come from
having a publicly listed company.
Pawnbroker sees profits boom
Pawnbroker Albemarle & Bond raised it
interim dividend on the back of a higher
first-half profit, as more hard-up Britons
pawned or sold gold jewellery for cash.
First-half profit before tax rose 12 per
cent to 12.1m and the companys
pledge book was up seven per cent to
38.3m. The firm, which also offers
cheque cashing, small instalment and
payday loans, said it was on track to
open 25 new stores in the full year.
ICAP, the worlds largest inter-
dealer broker, has announced the
purchase of Singaporean firm
Island Shipbrokers as it looks to
boost its influence in the Asian
market.
Islands core business is the
chartering, sale and purchase of
oil tankers and it has been work-
ing closely with ICAP for several
years.
ICAP Shipping began as a dry
bulk specialist before moving
into tankers, but until now it has
not had an Asian tanker arm.
The new deal will give Island
access to ICAPs lengthy client list
and the ability to take advantage
of the Asian commodities boom,
with staff working closely with
ICAPs existing dry cargo offices
in Shanghai and Singapore.
The cost of buying out Islands
previous owners Tim Madley,
Allan Spangsberg and Mystic
Enterprises Limited was not dis-
closed but the Asian firm has net
assets of $2.4m (1.5m), gross
assets of $8.4m and employs 39
staff in its Singapore office.
Henry Liddell, chief executive
of ICAP Shipping, said: Island
Shipbrokers extensive experience
in the tanker chartering and sale
and purchase markets will com-
plement our existing London and
Shanghai operations and
strengthen ICAP Shippings
growth in the Asia region.
Tim Madley, president of Island
Shipbrokers, added: Our per-
formance in the physical tanker
chartering and sale and purchase
markets will be further enhanced
by ICAP Shippings capability in
tanker derivatives and research.
With a broader network of global
coverage, we will be strongly
placed to continue expansion in
the Asian shipping markets.
Shares in the parent firm
closed up 1.5 per cent at 395.8p
yesterday.
ICAP buys
shipbroker
and targets
Asia growth
BY JAMES WATERSON
BROKERS
News
German cars win style race for UKs drivers
N
EXT week sees the first 2012-
plate registered cars roll onto
the streets. YouGovs
BrandIndex data indicates that
the cars consumers would prefer to
drive away are German.
The Index rankings have four
German brands in the top five:
Volkswagen leads the way with a score
of +31, followed by Audi on +29,
Mercedes, Jaguar (the one interloper)
and BMW, all on +26.
In the car market, the Index score
gives an idea of aspiration, but it is a
composite of six key measures
impression, quality, value, satisfaction,
recommendation and reputation
and there are considerable differences
in ratings between measures. Indeed
only Volkswagen makes it into the top
five on all six of the measures (the next
best is four out of six top five spots).
The biggest contrast comes between
quality and value. From a quality point
of view, the top three are BMW, Audi
and Mercedes, but we see a different
picture when it comes to that key
measure of value. Here, it is VW and
Ford that share the top spot on +23,
with Toyota, Skoda and Honda round-
ing out the top five. Indeed, you need
to drop as far down as 17th and 18th
on this measure to find BMW and
Mercedes. One brand on the slide
value-wise is Vauxhall, which has
dropped from seventh a year ago to
ninth today.
British consumers may aspire to an
Audi or Mercedes but with value such
an important factor in a car purchase,
reality may lead them to Ford or a VW.
It is the latter that has been the most
successful brand in terms of combin-
ing the two and portraying an image
of affordable aspiration.
Stephan Shakespeare is the chief executive of
YouGov
GERMAN CAR SPECIAL: P30
BRANDINDEX
STEPHAN SHAKESPEARE
NEWS | IN BRIEF
Profit warning at Gooch & Housego
Optical components maker Gooch &
Housego has issued a full-year profit warn-
ing, saying demand for some of its industrial
laser products was considerably weaker
than it had expected, and that it would cut
costs where possible. The company said it
expected profits for the year ending 30
September to be significantly below its
previous expectations, sending its shares
down 17 per cent to 383.75p. Analysts on an
average had expected the company to earn
a pre-tax profit of 10.2m. G&H, which sup-
plies critical components to optical and laser
system makers, said it would continue to
consolidate and integrate the acquisitions it
made last year to diversify its revenues.
ANALYSIS l ICAP
p
395
390
400
385
380
375
370
395.80
21 Feb
Michael Spencer is eyeing expansion
Picture: Laura Lean/City A.M.
ANALYSIS l Value Chart
Audi
Ford
Mercedes
Volkswagen
1 Jul 1 Aug 1 Sep 1 Nov 1 Oct 1 Dec 1 Jan 1 Feb
30
25
20
15
10
5
0
ANALYSIS l Index Chart
Audi
Ford
Mercedes
Volkswagen
1 Jul 1 Aug 1 Sep 1 Nov 1 Oct 1 Dec 1 Jan 1 Feb
35
30
25
20
15
10
5
0
TATA Motors will double invest-
ments in its Jaguar Land Rover
brands to 1.5bn a year, even as
the Indian carmaker warned that
it will be a challenge to sustain
high margins at its key profit gen-
erator.
With soaring revenues and
expanding margins, Jaguar Land
Rover (JLR) has driven the compa-
nys growth in recent quarters, as
strong demand in emerging coun-
tries for the famous British brands
offset sluggish performance in
Tatas home market.
Over the past five to six years,
JLR has spent around 700-800m
annually on capital expenditure
and product development. Going
forward, we will double that, CR
Ramakrishnan, Tatas finance
chief, said yesterday.
JLR spending will be in the
order of 1.5bn each year,
Ramakrishnan told reporters,
adding that the increase would
apply in the current fiscal year
ending in March.
JLR contributed 95 per cent of
the companys profit in the quar-
ter to end-December, with a profit
margin of 20 per cent, three times
the profitability seen at Tatas
domestic business.
Sustaining such high margins
in coming quarters would be a
challenge, for JLR, Ramakrishnan
added, as sales growth likely mod-
erates.
Sales of its new compact Evoque
SUV accounted for much of JLRs
revenue growth in the fiscal third
quarter, alongside surging
demand in emerging markets
such as Russia and China.
Tata has selected a joint venture
partner for manufacturing JLR
cars in China and is awaiting
approval from government regula-
tors in the worlds fastest-growing
auto market, Ramakrishnan said.
An announcement on the com-
panys China joint venture will be
made very soon, he added.
Tata doubles Jaguar Land Rover funds
BY HARRY BANKS
INDUSTRY
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OIL firm Tullow Oil said yesterday a
long-awaited $2.9bn (1.8bn) deal to
bring in French oil major Total and
Chinese group CNOOC as partners to
develop its oil fields in Uganda closed
yesterday, paving the way for com-
mercial oil production to start in the
African country.
The conclusion of the deal marks
the transfer of $2.9bn to Tullow from
Total and CNOOC, after repeated
delays following the initial announce-
ment of the deal early in 2010, and
the signing of the sale agreements in
March 2011.
The British group will now focus on
its $10bn plan to start pumping oil
from huge reserves discovered on the
shores of Lake Albert.
Early production is scheduled to
start in 2013 before ramping up to a
major production phase in 2016,
Tullow said.
The final closing of the deal had
been expected following Tullows
signing of two production-sharing
agreements with Uganda earlier in
February.
FTSE 100-listed Tullows shares
dipped in early trading yesterday
after a drilling update on its Jupiter-1
deep-water discovery well in Block SL-
07B offshore Sierra Leone, operated
by Anadarko Petroleum, was poorly
received by investors.
Westhouse Securities said in a note
that the data provided by the compa-
ny was inconclusive.
Tullow finally
seals $2.9bn
Uganda deal
BY HARRY BANKS
ENERGY
News
CITYA.M. 22 FEBRUARY 2012 21
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Aberdeen Asset
Management
250
200
225
275
Dec Jan Feb
p
257.02
21 Feb
ABERDEEN ASSET MANAGEMENT
Peel Hunt has downgraded its recommenda-
tion on the asset manager from buy to
hold but upgraded its estimates and target
price on the stock, with the latter climbing
from 270p to 280p. The broker says strong
performances in its key equity funds have led
to upgrades of 2012 and 2013 estimates by
four per cent and seven per cent respectively,
but the 36 per cent share rise over three
months means the recommendation falls.
ANALYSIS l Admiral
900
800
850
950
1,000
1,050
Dec Jan Feb
p
1,043.00
21 Feb
ADMIRAL
Credit Suisse has upgraded the insurance
group from neutral to outperform
ahead of full-year figures expected on 7
March. The broker has also increased its
target price on the stock from 1,100p to
1,300p, and expects the upcoming results
to show that Admiral can regain market
confidence as bodily injury challenges are
being resolved. Credit Suisse expects pre-
tax profits to come in at 295m.
ANALYSIS l Rightmove PLC
1,350
1,200
1,250
1,300
Dec Jan Feb
p
1,339.00
21 Feb
RIGHTMOVE
Numis rates the mortgage group add
with a target price of 14.29. The broker
expects pre-tax profits of 67m when
Rightmove reports its full year figures on
Friday, with customer growth at around
two per cent. Numis is also upbeat about
the firms prospects for monetising mobile
and commercial property products.
Overall, it expects average revenue per
advertiser to rise 11 per cent this year.
NEWS | IN BRIEF
Vedanta buoyed by shake-up
Miner Vedanta, responding to specula-
tion it could merge two separately listed
Indian subsidiaries, said yesterday it
aimed to simplify and consolidate its
structure. The FTSE 100-listed compa-
ny trades at a discount to the sector,
because of its gearing and because of a
structure which means it finds it harder
to repatriate cash from subsidiaries to
service group debt. Reports had said
Vedanta was considering a move to
restructure Sterlite and Sesa Goa,
potentially merging the two. It owns
almost 55 per cent of Sterlite and just
over 55 per cent of Sesa Goa. The com-
panys shares jumped by seven per cent
after it confirmed some restructuring.
Drax ditches biomass plant plan
Britain's coal-fired power producer Drax
has scrapped plans to build a dedicated
biomass plant on its site in North
Yorkshire, but said it was ready to invest
in biomass-fuelled power generation if
given appropriate regulatory support.
The company claimed state support lev-
els for using only biomass in power gen-
eration were still too low. For 2011, Drax
said earnings before interest, taxes,
depreciation, and amortisation fell 15
per cent to 334m.
Dragon Oil sees profits surge
Dragon Oil said yesterday its profits
surged 76 per cent in 2011, helped by a
production ramp up at its Turkmenistan
oil field and a higher oil price, though
was silent on whether it would proceed
with a takeover bid for explorer
Bowleven. Dragon Oil posted full-year
operating profit of $856.2m (542m).
It said in 2011, its oil production rose
30 per cent.
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News
NewRiver Retail
The real estate investment trust has
appointed Christopher Taylor and Kay
Chaldecott as non-executive directors,
effective from 31 March, when current
non-executive directors Peter Tom and
Susie Farnon will stand down. Taylor is
chief executive of Hermes Real Estate,
and Chaldecott stepped down as manag-
ing director and an executive board
director at Capital Shopping Centres
Group last September.
Shore Capital
Shore Capital has hired Patrick Castle to
its corporate finance team. Castle moves
from Evolution Securities; prior to that,
he worked at Arden Partners.
Horizonte Minerals
The Aim-listed explorer focused in Brazil
has appointed Phillip Mackey as senior
metallurgical advisor. Mackey is a con-
sulting metallurgical engineer specialising
in nickel, who has worked for producers
Falconbridge and Xstrata.
Veritas Asset Management
Ramesh Narayanaswamy has been
appointed as global industrials analyst to
work across the groups global strategies.
Narayanaswamy joins from Fidelity
Investments, where he spent five years
as a global equity analyst covering global
industries including construction materi-
als, capital goods and utilities.
Pimco
The investment management firm has
strengthened its European investment
solutions team with two hires in its
London office. Hannah Simons joins from
BlackRock as a senior vice president and
product manager, and Janki Tanna joins
as a product associate from Mercer
Investment Consulting.
Grant Thornton
Martin Young has joined as head of finan-
cial planning for the investment advisers
London team. Young was previously
managing partner at Coutts & Co.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Quindell Portfolio
The Aim-listed consultancy, software and out-
sourcing business has appointed Gillian Baker
as head of investor relations and chair of the
companys newly formed strategy and integra-
tion advisory board. Baker started her career
at IBM, working with clients in the finance
and insurance sectors, before joining the
Innovation Group in 2000 as senior vice presi-
dent, marketing.
Dow Jones climbs
despite Wal-Mart
U
S stocks ended little changed yes-
terday, paring gains after the
Dow topped 13,000 for the first
time since May 2008, and as
higher oil prices damped prospects for
the economy.
Greeces securing of a bailout to
avoid a disorderly default provided
some support to stocks, but investors
said the news had mostly been priced
in to the market.
Fresh highs in oil prices gave
investors a reason to sell. US crude
futures rose 2.5 per cent to a nine-
month high of $105.84 a barrel on Iran
supply worries.
Since the start of the year, signs of
improvement in the economy and sta-
bilization of Europes debt crisis have
driven the Dow up 6.1 per cent, while
the S&P has climbed 8.3 per cent.
Yesterday the Dow Jones industrial
average finished up 15.82 points, or
0.12 per cent, at 12,965.69, after briefly
climbing above the psychologically
important 13,000.
The Standard & Poors 500 Index
was up 0.98 point, or 0.07 per cent, at
1,362.21. The Nasdaq Composite Index
was down 3.21 points, or 0.11 per cent,
at 2,948.57.
Wal-Mart shares fell 3.9 per cent to
$60.07, erasing most of the stocks
gains so far in 2012, after its quarterly
profit came in short of expectations.
THENEW YORK
REPORT
FTSE corrects as
Greek deal struck
B
RITAINS top share index edged
lower yesterday, with investors
taking profit on banks and
cyclicals after Greece secured a
long-awaited bailout deal that averted
the immediate risk of a messy default
but offered no long-term panacea.
Londons blue chip index closed
down 17.05 points, or 0.3 per cent at
5,928.20, retreating from a seven-
month closing high it reached on
Monday on expectations for the
Greek deal and posting its biggest
daily drop in seven sessions.
Having risen 6.5 per cent this year,
bolstered by liquidity injections from
global central banks and improved
risk appetite, the FTSE is approaching
overbought territory on the relative
strength indicator (RSI).
If we go down two per cent from
here, that will be a good healthy cor-
rection. We are not going to go back
to unchanged on the year there is
too much money about, all that QE
(quantitative easing) liquidity, said
Justin Haque, pan-European equity
sales trader at Hobart Capital
Markets.
Low turnover underlined investors
cautious mood, with volumes on the
FTSE 100 coming in at 93 per cent of
the 90-day average.
Eurozone policymakers agreed a
130bn (109bn) rescue for Athens,
enabling it to meet bond payments
due in March. With the widely expect-
ed deal done, investors switched their
focus to the remaining doubts about
Greeces ability to recover and avoid a
default in the longer term, as well as
risks of contagion to other countries.
It [the Greek deal] does not change
my view at all, said Francesco Curto,
CROCI strategist at Deutsche Bank.
We all know that it is not going to
take three months or six months to
solve Greece, but ultimately it seems
that within Europe you are managing
to confine the problem.
Curto favours a defensive value
strategy, focusing on companies with
low price-earnings ratios, which also
offer relatively high cash returns, low
financial leverage and low volatility,
like pay-TV group BSkyB, drugmaker
Shire and oil major Royal Dutch Shell.
Shell was one of the few FTSE gainers,
up 0.8 per cent, as high oil and metal
prices boosted energy and miners.
THELONDON
REPORT
A
S SOON as The Iron Lady hit the silver
screen, it brought back memories of
the Falklands War -- a war that official-
ly commenced on 2 April, 1982, only
three short years after Margaret Thatcher
assumed the reins as Prime Minister.
Since 1833, Britain has been able to main-
tain its colonial settlement of the Falklands
against the objections of Argentina. The
Falklands? Even Samuel Johnson had some-
thing to say about the Falklands. This is what
he wrote in 1771:
What, but a bleak and gloomy solitude, an
island thrown aside from human use, stormy
in winter, and barren in summer; an island
which not even southern savages have digni-
fied with habitation; where a garrison must
be kept in a state that contemplates with
envy the exiles of Siberia; of which the
expense will be perpetual, and the use only
occasional; and which, if fortune smiles upon
our labours, may become a nest of smugglers
in peace, and in war the refuge of future buc-
caneers.
When Thatcher took over from Jim
Callaghan, her government was briefed on
the festering Falklands sore. But the Thatcher
government did not realise that danger was
lurking, as is always the case when disputed
territories are in the picture. Indeed, Britains
intelligence about what Argentinas military
government was up to was wanting. When
the Galtieri government struck, Britain was
caught off guard and the Falklands War
ensued, resulting in more than 900 casual-
ties.
And, as they say, what goes around comes
around. As preparations for the 30th anniver-
sary of the war proceed, tensions are on the
rise, yet again. Last December, Prime Minister
David Cameron was angered by reports that
Argentine naval vessels had intercepted
Spanish fishing boats in Falkland waters.
Argentinas President Cristina Fernndez
brushed this off and ratcheted things up by
claiming that the Falklands were a global
issue. In addition, she obtained an agreement
with countries in the Mercosur trade pact
that any ships flying the Falklands flag
would not be permitted to enter Mercosur
ports.
Before we have more nationalistic postur-
ing, sanctions, protracted skirmishes, a new
war, and only then a solution, lets move
the Falklands dispute out of theological terri-
tory and try to think creatively and design
market-based treaties applicable to danger-
ous disputed territories.
For the Falklands, the governments of the
United Kingdom and Argentina would agree
that those Falklanders who were qualified to
vote would be allowed to do so in a referen-
dum. The referendum would allow the set-
tlers who are English-speaking and English
by custom, institutions and loyalties to vote
on whether they prefer the status quo, or
whether they would agree (yes) to an
Argentine takeover. A super-majority yes
vote, of say 80 per cent, would be required by
the Falklanders to allow Argentina to claim
sovereignty.
This is where markets come in. The
Falklanders would have to be compensated by
Argentina for accepting its claim to sover-
eignty. The referendum would be designed so
that Argentina could offer a cash incentive.
Before the referendum, Argentina would
deposit an amount (lets say $500,000) in
escrow in Swiss bank accounts for every man,
woman and child who had proven their
Falklands residence prior to the referendum.
If the referendum went in Argentinas
favour (over 80 per cent of eligible voters cast-
ing a yes vote), then the funds in escrow
would be transferred and Argentinas unam-
biguous sovereignty over the Falklands would
be established. Argentinas cost, in this hypo-
thetical, would be about $1.6bn.
A transparent market solution for the
Falklands and other disputed territories
would be a cost-effective way to unambigu-
ously establish sovereignty a way that
avoids blundering into unwanted wars and
spilling blood, sweat and tears.
Steve H. Hanke is professor of Applied Economics at
The John Hopkins University in Baltimore. He served
as an adviser to former Argentine President Carlos
Menem and his minister of economy Domingo
Cavallo. Professor Hanke was the president of
Toronto Trust Argentina in Buenos Aires when it
was the worlds best performing emerging market
mutual fund.
24
The Forum
The referendum would be
designed so that Argentina
could offer a cash incentive.
Before the referendum, it
would deposit $500,000 in
escrow for every man,
woman and child who had
proved their residence.
A market solution will save
money and end the dispute
over Falklands sovereignty
cityam.com/forum
STEVE H. HANKE
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
A
S THE British economy faces tough eco-
nomic challenges, promoting areas of
potential economic growth is not only
important it is essential.
With an annual turnover of 25bn (roughly
the equivalent to two per cent of our countrys
GDP) the legal services industry in England and
Wales is an example of one such area.
The UK is recognised, internationally, as a
global centre of legal excellence. We offer world
class, highly specialised practitioners and
expert judges. A decision from a UK court is
received, the world over, as a hallmark of
integrity, impartiality and enforceability.
This global reputation offers significant
opportunities for growth, especially in provid-
ing legal services to developing economies.
However, protectionist regulations in key
growth markets such as India and a number of
other emerging markets currently inhibit the
export of UK legal services.
The Indian legal market alone is estimated to
be worth $4bn (2.52bn) in annual revenue.
The Ministry of Justice predicts that, should it
be de-regulated, the Indian market could be
worth $12.3bn by 2016. For this reason the
industry and the government have, rightly,
made persuading these economies to tear
down their barriers to entry a key priority. On a
recent trip to India, the lord chancellor cam-
paigned on the very issue of the liberalisation
of legal services.
Deregulation is a win-win. Mid-sized firms
and multinational companies seeking to invest
overseas, particularly in emerging markets,
require high-quality legal advice. Increased
competition in these closed markets, particu-
larly in the area of corporate law, will benefit
local firms by driving up standards, while local
firms will retain their competitive edge thanks
to their lower costs.
But opening up such opportunities is not
enough. Our international position is not guar-
anteed. The coming decade promises to see
increased competition as other cities, such as
Paris, New York and Hong Kong aspire to com-
pete with London as the world leader in legal
services.
Meanwhile our preeminence faces legislative
threats such as the common sales law being
put forward by the European Commission as
an EU civil law alternative to English common
law.
The industry is working with key policymak-
ers and government departments to ensure the
UK retains its competitive edge. However, there
are also changes that we must implement our-
selves to ensure we stay ahead of the game. Law
firms must make themselves more attractive to
the general business community they serve. For
too long, the industry has been resistant to
change. There are signs that we are waking up
to this, but there is still more to do. The indus-
trys billing structure, for example, is antiquat-
ed and is in need of reform. More
fundamentally, the legal community needs to
shift public perception away from one of
instruction takers and executers of legal briefs
to a profession of senior, trusted advisers able to
bring deals to the table.
The challenges the legal industry faces in
ensuring the UK remains the world leader in
the provision of legal services are significant.
However, I am confident that by working in
unison with foreign governments and other
bodies, these barriers can be overcome and our
goals achieved.
Lord Tim Clement-Jones CBE is partner (internation-
al business relations) and London office managing
partner for DLA Piper.
25
Competition isnt
just a challenge
its a chance to
bolster leadership
Liberate the law
from regulation
that shackles it
The pay agenda
I would like to respond to your
coverage of our research into
directors pay. Our findings are
based on meticulous research and
a rigorous methodology. There is
nothing meaningless about aver-
ages if that is what the data is
saying, I know of no statistics text-
book that actually says otherwise.
Our average 49 per cent not only
includes some high individual
increases, but also some very
sharp decreases. Medians are
equally statistically valid, but
understate the highs and lows.
As to our latest non-executive
directors survey, when we talk
about the 10 per cent rise we
were only looking at the two-
thirds of top companies that
reviewed their fees during the
period for a perfectly good reason.
Non-executive fees are usually
uprated every two or three years:
to capture what increases have
taken place we need to isolate
companies where reviews have
taken place. To ensure the 10 per
cent figure was not taken out of
context we included in our latest
release the calculation including
companies where reviews hadnt
taken place. That was how you
were able to report a 4 per cent
rise in non-executive fees.
A debate on directors pay is to be
encouraged, but only if partici-
pants are interested in pursuing a
discussion on the basis of facts
rather than a personal agenda.
Steve Tatton, editor, IDS
Executive Compensation Review
RAPID RESPONSES
BY JAMIE WHYTE
The Forum
Y
ESTERDAY, the
Prime Minister
met healthcare
professionals con-
cerned about the pro-
posed reforms of the
National Health Service
(NHS). He reassured
them that this is about
improving and enhancing our NHS, not in any way
endangering it.
He is right that these reforms will preserve the
NHS. Those who use it will still pay nothing. This is
the defining feature of the NHS, and its politically
sacred feature. Even politicians who understand
that user pays generally promotes efficiency think
it would be dreadfully uncaring in healthcare.
They are wrong. A government that really cared
about us would make us pay for healthcare.
Services provided free to users are not gifts but
burdens. They are compulsory purchases.
Take a simple example. How much are you will-
ing to set aside to cover the cost of medical care in
your old age? Personally, not much. I would rather
spend the money now to enjoy life while still delud-
ed that I am young and healthy. I will save only
enough to cover my basic medical needs when old
and clapped out: enough for false teeth and a years
supply of morphine.
But wait. Like everyone else, I am entitled to
comprehensive medical care when old, whether I
can pay for it or not. So here is what I will do. I
wont save anything and then I will take all I can
get free from the NHS, as will everyone else.
How will the government pay for all this free
medical care? By taxing me, of course, along with
my fellow entitlement holders. In the end, my enti-
tlement simply obliges me to buy medical treat-
ment that I do not think worth the cost. Which is a
strange way for the government to show it cares
about me.
Those politicians who provide us with entitle-
ments are not billionaire benefactors. The burden of
funding our entitlements falls back on us. Our enti-
tlements thereby decrease our ability to consume
anything else.
Of course, many people consume healthcare,
education and other state supplied services worth
more than they pay in taxes. They effectively
receive a transfer from those who pay more tax
than they receive in state services. But even these
net beneficiaries would be better off if they
received not free services but their cash equivalent.
This would allow them to consume according to
their own preferences rather than politicians.
Perhaps you believe that no one in Britain should
be so poor that they cannot afford decent health-
care. Well then, provide them with a guaranteed
minimum income sufficient to buy health insurance.
That is enough to satisfy your caring urge. If
instead you provide them with free healthcare you
achieve something quite different. You force them
to consume what you think they should. But if you
really care about people, you should care about
what they want.
The real beneficiaries of unpriced, tax-funded
services the NHS, the BBC, state schools, and the
rest are not their users; they merely lose control
of their consumption. The beneficiaries are those
whose services the rest of us are compelled to buy.
Next time Cameron hosts some healthcare pro-
fessionals at Downing Street, he should not offer
them reassurance. He should tell them he is no
longer willing to enforce their extortion racket.
Jamie Whyte is a senior fellow of the Cobden
Centre.
A heretics view of the
National Health Service
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
TIM CLEMENT-JONES
CAPITAL SPREADS
ANGUS
CAMPBELL
The jump in the euro
was as short lived as
the expectations that
this bailout deal will
actually solve Greeces
problems. Euro-dollar
failed at the major resistance level of
$1.3300 creating a double top that bears
feel could be a tough one to break through to
the upside.
Weve heard of the saying kicking the can
down the road before, but this time it is
particularly apt as Greeces target of reduc-
ing its deficit is so far down the road that
even if it does manage to meet the EUs
demands by 2020, itll still have a whopping
great budget deficit. In the interim its
financing needs are around 250bn and
thats if it can generate some sort of anaemic
growth beyond what most forecasters
expect over the next few years.
Unfortunately, as the country is only able to
devalue internally as opposed to having its
own currency which it can deflate to get
competitive again, the task at hand is monu-
mental. It comes as little surprise that
alleged documents leaked by the troika show
their own scepticism in the deal thats been
brokered ever being achievable. To make
matters worse, this is before any PSI agree-
ment on how much debt itll write down and
the uncertainty of the outcome of a Greek
general election in April.
The Greek deal built on a bed of sand
Few have any faith that the agreement on a further bailout will prevent Athens from crumbling
Wealth Management| Foreign Exchange
ETX CAPITAL
MANOJ
LADWA
So Greece has finally
taken the appropriate
measures to ensure it
remains solvent for a
little while longer. The
government is on the
receiving end of 130bn, the second
tranche of funding to see it through until
2014. Sovereign debt holders have also
agreed to a larger than expected haircut on
their existing holdings, while new debt will
be issued at a lower coupon.
As long as the Greek government can keep
to its side of the bargain and implement the
proposed austerity cuts, we should be
drawing a line under this issue. Or should
we? The deal may have bought Greece a bit
more time, but some may ask if Greece is
not better out of the euro altogether.
Economic growth is firmly on the back
burner as an increase in GDP and budget
cuts do not really go hand in hand.
Being tied to the euro, which has remained
relatively robust despite the crisis, means
the Greeks do not have the privilege of
devaluing their way back to growth. With
increasing social unrest, the government
may find it difficult to implement their pro-
posed plan.
While the deal may provide short-term sup-
port for Greece and the euro, it does have
the potential to fall apart further down the
line.
IG MARKETS
CHRISTOPHER
BEAUCHAMP
Three cheers all round,
Greece is saved! Well,
actually, maybe not.
The deal cobbled
together on Tuesday
morning does little to address any of the
underlying issues, and is perhaps the final
throw of the dice by both the Eurozone and
Greece. It assumes that the poor benighted
Greeks will somehow succeed in the
Heraclean task of attaining GDP growth of
2.3 per cent growth by 2014 and that their
debt levels will have fallen to a more sustain-
able level, notwithstanding the massive loss
in economic activity caused by the cleansing
of the Augean stables of Greek public
finances. Continuing the Athenian comedy
theme, the experts in Brussels think they can
accurately predict what Greek GDP will be in
2020. Given that most economists dont
know what an economy will look like six
months down the line, this seems a tad opti-
mistic.
In the short term, this deal might afford
some support for the euro, and tempt a few
more buyers out, but dissatisfaction with the
end result is likely to build, putting the single
currency under further pressure as the year
grinds on. I fear that there will be another
crisis and another summit a few months on
from today, and that this time the mutual
patience of Greece and the Eurozone may
finally run out.
SCHNEIDER FX
STEPHEN GALLO
Understanding the
political situation is the
key to understanding
how fragile the bailout
euphoria will be.
Payouts from a 130bn
pile of cash, or the car-
rots are being dangled in front of Greece's
face, but so too are the economic adjustment
programmes and external budgetary over-
sight which are necessary to secure dis-
bursements of aid from the aforementioned
euro area/IMF funds.
The three year long-term repo operations
(LTRO) are propping up the system, the euro
and keeping a modest risk rally intact, but
the political situation has the potential to
deteriorate in spite of European Central
Bank liquidity, whilst the risk rally is actually
dependent on the former. If Greece cannot
meet all of its adjustment targets, the coun-
trys external creditors will have to consider
moving the goal posts much further down
the field; if the goal posts are immovable,
then even after yesterdays deal the risk of a
default is still not non-existent.
The euro has already received modest sup-
port from previously priced-in expectations
of a Greek debt deal this week, so the main
questions revolve around the political divide
between the north and south of the
European monetary union, and the markets
taking aim at other impaired euro area sov-
ereign credits. We call this walking a tight
rope.
$1.57769-$1.5778.
Euro-dollar has been flipping like a beau-
tifully cooked pancake between the
$1.3000 and $1.3300 levels as politicians
go back and forth with bailout terms. Now
that it has been agreed the single currency
has returned to test the $1.3300 level, but
failed at its second attempt to breech it.
This has formed a double top over the short
term and could be a signal for lower prices
to come. Capital Spreads quotes a price of
$1.3210-$1.3211 for euro-dollar.
The recent decision by the Bank of Japan
to ease monetary policy seems to have the
desired effect of weakening the yen, which
remains especially important in light of the
recent record trade deficit. The yen needs
to continue to weaken through the 80
level for the easing to be seen to have done
its job, CMC Markets spread on dollar-yen
is 79.738-79.745.
Aussie dollar-Canadian dollar is per-
haps an interesting way of playing the idea
of differing growth expectations between
China and the US Australia and Canada
being major suppliers to these two super-
powers respectively. The story in 2012 so
far has been one where the Aussie has
gained in strength as Chinese data contin-
ues to point to the strength of this econo-
my. But the trend has faltered in the past
few days as the idea of a resurgent Uncle
Sam takes hold. Further good US data, cou-
pled perhaps with additional weaker
Chinese news, might put the ball back in the
Loonies court, suggesting further downside
in Aussie dollar-Canadian dollar. IG Indexs
price on Aussie dollar-Canadian dollar is
Ca$10.633-Ca$10.639.
The US dollar has not had the best of
starts to the year, with the notable excep-
tion of its performance relative to the yen.
The Loonie has gained 2.5 per cent against
the greenback since 1 January and the
trend is strong and suggesting further
downside to come. Look to sell any bounces
in dollar-Canadian dollar around
Ca$1.0030 as there is a confluence of
trend, Fibonacci and moving average resist-
ance around there. Spread Co offers a
spread on dollar-Canadian dollar of
Ca$0.9953-Ca$0.9957.
Craig Drake
T
HE Aussie dollar-Japanese yen pair
remains a key measure of investor risk
appetite and both sides of the curren-
cy pair have been in the news recent-
ly. Last week, the Bank of Japan surprised
markets by announcing additional easing.
This followed news of the countrys unex-
pectedly large fall in GDP. Traders were also
caught on the hop as the Reserve Bank of
Australia kept rates on hold when a 25
basis point cut was factored in. Both central
bank moves have helped to lift the Aussie
dollar and weaken the yen. The pair man-
aged to consolidate above a key Fibonacci
level of 83.15 and is now testing resist-
ance around 86.00. GFT quotes 85.420-
85.435.
We have seen euro-Swiss franc continue
to flip-flop between SFr1.2050 and SFr1.21
can the second bailout for Greece be
enough to see this pair break out to the
upside and target SFr1.25? Forex.com
quotes SFr1.2069-SFr1.2071 for euro-
Swiss franc.
In recent session, sterling-dollar has
remained capped by the 200-day moving
average at the $1.5920/30 area. A con-
vincing close above the 200-day MA could
target $1.6080. Weak support can be
found at $1.5730, with key support below
at the 55-day MA at $1.5610. CMC
Markets quotes sterling-dollar at
Whats that Skippy?
Aussie dollar-yen has
consolidated above a
key Fibonacci level?
Picture: GETTY
THE TIPSTER
AUSSIE DOLLAR
TRADERS CAUGHT
ON THE HOP
LON GD ONCE FIX AM...........1737.00 7.50
SILVER LDN FIX AM ..................34.13 0.58
MAPLE LEAF 1 OZ ....................36.71 0.55
LON PLATINUM AM................1667.00 19.00
LON PALLADIUM AM...............701.00 8.00
ALUMINIUM CASH .................2129.50 -7.50
COPPER CASH ......................8232.00 -137.50
LEAD CASH...........................2027.50 0.50
NICKEL CASH......................19595.00 -135.00
TIN CASH.............................23525.00 -670.00
ZINC CASH ............................1950.00 -12.50
BRENT SPOT INDEX................120.52 0.69
SOYA .....................................1267.50 0.00
COCOA..................................2389.00 0.00
COFFEE...................................200.05 0.00
KRUG.....................................1814.60 13.20
WHEAT ....................................166.75 -1.88
AIR LIQUIDE........................................97.24 0.79 100.65 80.90
ALLIANZ..............................................90.60 -0.67 108.70 56.16
ANHEUS-BUSCH INBEV ....................49.60 -0.15 50.04 33.85
ARCELORMITTAL...............................16.64 -0.20 28.03 10.47
AXA......................................................12.45 -0.07 15.97 7.88
BANCO SANTANDER...........................6.55 -0.02 9.00 4.94
BASF SE..............................................65.00 0.34 70.22 42.19
BAYER.................................................56.64 -0.67 59.44 35.36
BBVA......................................................7.07 -0.03 9.17 4.94
BMW ....................................................71.90 -0.34 73.85 43.49
BNP PARIBAS.....................................37.46 0.29 59.06 22.72
CARREFOUR ......................................18.30 0.02 31.64 14.66
CRH PLC .............................................16.12 -0.31 17.40 10.28
DAIMLER.............................................47.98 -0.43 53.95 29.02
DANONE..............................................50.32 -0.07 53.16 41.92
DEUTSCHE BANK..............................33.85 -0.73 48.30 20.79
DEUTSCHE BOERSE .........................51.83 -0.19 58.32 35.65
DEUTSCHE TELEKOM.........................9.02 0.02 11.38 7.88
E.ON.....................................................16.85 -0.10 24.98 12.50
ENEL......................................................3.06 0.05 4.86 2.78
ENI .......................................................17.43 -0.03 18.40 11.83
FRANCE TELECOM............................11.45 -0.03 16.65 11.09
GDF SUEZ ...........................................19.82 -0.05 30.05 17.65
GENERALI ASS...................................11.90 -0.04 16.85 10.34
IBERDROLA..........................................4.73 -0.02 6.10 4.16
INDITEX ...............................................68.77 -0.56 69.85 50.92
ING GROEP CVA...................................6.81 -0.14 9.50 4.21
INTESA SANPAOLO.............................1.53 -0.04 2.44 0.85
KON.PHILIPS ELECTR.......................16.25 -0.17 24.12 12.01
L'OREAL..............................................85.19 -0.40 91.24 68.83
LVMH..................................................127.60 0.35 132.65 94.16
MUNICH RE .......................................110.30 -1.00 126.00 77.80
NOKIA....................................................4.22 0.04 6.83 3.33
REPSOL YPF.......................................20.88 -0.11 24.90 17.31
RWE.....................................................33.57 -0.10 53.11 21.15
SAINT-GOBAIN...................................36.75 -0.46 47.64 26.07
SANOFI ................................................56.54 0.69 57.42 42.85
SAP......................................................49.65 0.03 49.90 32.88
SCHNEIDER ELECTRIC.....................47.84 -1.58 61.83 35.00
SIEMENS .............................................74.97 -0.13 99.39 62.13
SOCIETE GENERALE.........................24.30 0.14 52.65 14.32
TELECOM ITALIA..................................0.83 -0.01 1.16 0.70
TELEFONICA ......................................13.18 -0.08 18.59 12.50
TOTAL..................................................41.80 -0.19 44.55 29.40
UNIBAIL-RODAMCO SE...................145.00 -2.00 162.95 123.30
UNICREDIT............................................4.22 -0.06 13.34 2.20
UNILEVER CVA...................................25.63 0.08 27.16 20.90
VINCI ....................................................38.85 0.03 45.48 28.46
VIVENDI ...............................................16.57 -0.01 21.37 14.10
VOLKSWAGEN VORZ ......................144.75 0.65 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5928.20 -17.05 -0.29
FTSE 250 INDEX. . . . . . . . 11379.54 -40.67 -0.36
FTSE UK ALL SHARE . . . . 3066.01 -9.11 -0.30
FTSE AIMALL SH . . . . . . . . 823.06 1.05 0.13
DOWJONES INDUS 30 . . 12965.69 15.82 0.12
S&P 500 . . . . . . . . . . . . . . . 1362.21 0.98 0.07
NASDAQ COMPOSITE . . . 2948.57 -3.21 -0.11
FTSEUROFIRST 300 . . . . . 1085.38 -5.57 -0.51
NIKKEI 225 . . . . . . . . . . . . . 9463.02 -22.07 -0.23
DAX 30 PERFORMANCE. . 6908.18 -40.07 -0.58
CAC 40 . . . . . . . . . . . . . . . . 3465.24 -7.30 -0.21
SHANGHAI SE INDEX . . . . 2381.43 17.83 0.75
HANG SENG. . . . . . . . . . . 21478.72 53.93 0.25
S&P/ASX 20 INDEX . . . . . . 2560.60 0.00 0.00
ASX ALL ORDINARIES . . . 4368.20 0.00 0.00
BOVESPA SAO PAOLO. . 66203.50 61.80 0.09
ISEQ OVERALL INDEX . . . 3183.72 -23.54 -0.73
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 882.55 -4.49 -0.51
SWISS MARKET INDEX. . . 6237.82 -5.17 -0.08
Price Chg %chg
3M........................................................87.60 0.04 98.19 68.63
ABBOTT LABS ...................................56.16 -0.20 56.84 46.06
ALCOA ................................................10.41 0.26 18.47 8.45
ALTRIA GROUP..................................29.62 -0.03 30.40 23.20
AMAZON.COM..................................182.26 -0.24 246.71 160.59
AMERICAN EXPRESS........................52.85 -0.01 53.80 41.30
AMGEN INC.........................................66.69 -1.09 70.00 47.66
APPLE...............................................514.85 12.73 526.29 310.50
AT&T....................................................30.34 0.33 31.94 27.27
BANK OF AMERICA.............................8.11 0.09 14.91 4.92
BERKSHIRE HATAW B.......................79.63 0.21 87.65 65.35
BOEING CO.........................................75.72 0.37 80.65 56.01
CATERPILLAR..................................115.00 1.05 116.55 67.54
CHEVRON.........................................108.41 1.75 110.99 86.68
CISCO SYSTEMS................................20.36 0.07 20.49 13.30
CITIGROUP.........................................33.36 0.44 49.60 21.40
COCA-COLA.......................................68.82 -0.23 71.77 61.29
COMCAST CLASS A..........................29.07 -0.10 29.27 19.19
CONOCOPHILLIPS.............................73.83 0.47 81.80 58.65
DU PONT(EI) DE NMR........................51.60 0.12 57.50 37.10
EXXON MOBIL....................................86.57 0.95 88.23 63.47
GENERAL ELECTRIC.........................19.41 0.13 21.60 14.02
GOLDMAN SACHS GRP ..................116.63 0.72 168.69 84.27
GOOGLE A........................................614.00 9.36 670.25 473.02
HEWLETT PACKARD.........................29.35 -0.24 48.80 19.92
HOME DEPOT.....................................46.92 0.21 48.07 28.13
IBM.....................................................193.39 -0.03 194.90 151.71
INTEL CORP .......................................27.16 -0.21 27.50 19.16
J.P.MORGAN CHASE.........................38.46 -0.01 48.13 27.85
JOHNSON & JOHNSON.....................65.04 0.05 68.05 55.76
KRAFT FOODS A................................38.57 0.56 39.06 24.30
MC DONALD'S CORP ......................100.49 0.50 102.22 72.89
MERCK AND CO. NEW......................38.13 -0.43 39.43 29.47
MICROSOFT........................................31.44 0.19 31.61 23.65
OCCID. PETROLEUM.......................104.41 0.49 117.89 66.36
ORACLE CORP...................................28.74 -0.05 36.50 24.72
PEPSICO.............................................63.14 0.46 71.89 58.50
PFIZER ................................................21.22 0.03 22.17 16.63
PHILIP MORRIS INTL .........................82.27 0.53 82.68 60.30
PROCTER AND GAMBLE ..................64.42 -0.49 67.72 56.57
QUALCOMM INC ................................62.78 0.26 62.93 45.98
SCHLUMBERGER ..............................78.58 0.84 95.64 54.79
TRAVELERS CIES..............................59.27 -0.58 64.17 45.97
UNITED TECHNOLOGIE ....................83.96 0.18 91.83 66.87
UNITEDHEALTH GROUP...................55.32 0.64 55.53 41.27
VERIZON COMMS ..............................38.49 0.03 40.48 32.28
VISA CL A..........................................114.20 -0.81 117.18 70.45
WAL-MART STORES..........................60.07 -2.41 62.63 48.31
WALT DISNEY CO ..............................41.57 -0.18 44.34 28.19
WELLS FARGO & CO.........................30.96 -0.13 33.20 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.279 0.00
LIBOR Euro - 12 months ................1.632 -0.01
LIBOR USD - overnight...................0.140 0.00
LIBOR USD - 12 months.................1.066 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.210 0.06
European repo rate.........................0.187 0.00
Euro Euribor ....................................0.364 0.00
The vix index ...................................17.88 0.10
The baItic dry index ........................715.0 -16.0
Markit iBoxx...................................239.29 0.04
Markit iTraxx..................................131.13 -4.68
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .320.6 -4.8 341.5 248.1
Chemring Group . . . .433.5 -5.5 736.5 368.8
Cobham . . . . . . . . . . .187.3 -4.0 236.5 165.9
Meggitt . . . . . . . . . . . .380.7 -6.0 397.6 304.9
QinetiQ Group . . . . . .148.4 -1.6 150.0 101.5
RoIIs-Royce HoIdi . . .799.0 6.0 803.4 557.5
Senior . . . . . . . . . . . . .185.9 -0.2 190.6 132.6
UItra EIectronics . . .1671.0 -6.0 1795.0 1305.0
GKN . . . . . . . . . . . . . .225.5 -0.7 245.0 157.0
BarcIays . . . . . . . . . . .247.8 -3.2 322.3 138.9
HSBC HoIdings . . . . .579.5 -2.2 711.1 463.5
LIoyds Banking Gr . . .35.8 -0.6 66.6 21.8
RoyaI Bank of Sco . . .28.2 -0.3 47.7 17.3
Standard Chartere .1641.5 -2.5 1712.5 1169.5
AG Barr . . . . . . . . . .1222.0 19.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .380.0 3.8 444.0 289.9
Diageo . . . . . . . . . . .1483.5 -14.5 1509.5 1112.0
SABMiIIer . . . . . . . . .2544.0 5.0 2563.5 1979.0
AZ EIectronic Mat . . .316.7 -0.9 338.1 206.1
Croda Internation . .2123.0 92.0 2172.0 1494.0
EIementis . . . . . . . . . .167.2 -2.3 187.4 107.5
Johnson Matthey . .2333.0 -18.0 2369.0 1523.0
Victrex . . . . . . . . . . .1350.0 -3.0 1590.0 1025.0
YuIe Catto & Co . . . . .215.5 2.9 253.0 148.0
C/$ 1.3251 0.0011
C/ 0.8387 0.0030
C/ 105.65 0.2246
/C 1.1923 0.0044
/$ 1.5798 0.0045
/ 125.96 0.1976
FTSE 100
5928.20
17.05
FTSE 250
11379.54
40.67
FTSE ALLSHARE
3066.01
9.11
DOW
12965.69
15.82
NASDAQ
2948.57
3.21
S&P 500
1362.21
0.98
Smith (DS) . . . . . . . . .166.6 -3.2 183.4 95.0
Smiths Group . . . . .1047.0 -13.0 1363.0 869.5
Brown (N.) Group . . .250.2 -1.1 304.5 227.0
Carpetright . . . . . . . . .637.0 -12.0 770.5 375.0
Debenhams . . . . . . . . .72.0 0.7 74.8 51.2
Dignity . . . . . . . . . . . .786.0 0.0 854.5 666.5
Dixons RetaiI . . . . . . .15.0 0.1 20.8 9.4
DuneImGroup . . . . . .511.5 4.0 524.5 383.9
HaIfords Group . . . . .318.5 -1.0 408.6 268.6
Home RetaiI Group . .109.0 -4.3 230.0 72.5
Inchcape . . . . . . . . . .375.1 -0.3 425.4 268.1
JD Sports Fashion . .816.0 -4.0 1030.0 570.0
Kesa EIectricaIs . . . . .81.7 -4.0 151.4 60.2
Kingfisher . . . . . . . . .277.5 -3.0 287.1 217.0
Marks & Spencer G . .354.9 -2.3 402.2 301.8
Next . . . . . . . . . . . . .2767.0 -13.0 2810.0 1868.0
Sports Direct Int . . . .289.8 -0.7 293.2 171.4
WH Smith . . . . . . . . . .541.5 -2.5 559.0 433.8
Smith & Nephew . . . .626.5 -4.0 729.0 521.0
Synergy HeaIth . . . . .852.0 2.0 981.0 808.0
Barratt DeveIopme . .129.7 -0.3 130.9 67.5
BeIIway . . . . . . . . . . . .794.0 -24.0 818.0 540.5
BerkeIey Group Ho .1345.0 -19.0 1364.0 960.0
BaIfour Beatty . . . . . .288.7 -2.1 357.3 214.6
CRH . . . . . . . . . . . . .1360.0 -14.0 1687.0 1053.0
GaIIiford Try . . . . . . . .501.0 1.0 530.0 332.8
Kier Group . . . . . . . .1452.0 -19.0 1471.0 1097.0
Drax Group . . . . . . . .518.5 -7.5 581.5 371.9
SSE . . . . . . . . . . . . . .1291.0 -3.0 1423.0 1184.0
Domino Printing S . .660.0 18.0 705.0 434.3
HaIma . . . . . . . . . . . . .382.6 -5.6 429.6 306.3
Laird . . . . . . . . . . . . . .168.0 0.7 207.0 127.9
Morgan CrucibIe C . .351.2 -3.2 358.5 224.0
Oxford Instrument .1135.0 33.0 1159.8 600.5
Renishaw . . . . . . . . .1473.0 -15.0 1886.0 800.0
Spectris . . . . . . . . . .1682.0 21.0 1705.0 1039.0
Aberforth SmaIIer . . .628.5 -1.0 714.0 494.0
AIIiance Trust . . . . . .368.8 0.9 392.7 310.2
Bankers Inv Trust . . .413.5 2.2 428.0 346.5
BH GIobaI Ltd. GB .1184.0 11.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.7 0.0 20.2 16.3
BH Macro Ltd. GBP 2033.0 13.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.7 0.2 20.2 16.2
BIackRock WorId M .716.0 -2.5 815.5 574.5
BIueCrest AIIBIue . . .163.5 0.1 176.2 160.6
British Assets Tr . . . .128.5 0.3 139.4 109.0
British Empire Se . . .455.0 3.6 533.0 404.0
CaIedonia Investm .1548.0 10.0 1809.0 1337.0
City of London In . . .299.0 0.0 306.9 257.0
Dexion AbsoIute L . .140.3 0.1 151.0 130.0
Edinburgh Dragon . .249.5 0.4 252.0 201.4
Edinburgh Inv Tru . . .490.0 -2.0 492.2 414.9
EIectra Private E . . .1627.0 3.0 1755.0 1287.0
F&C Inv Trust . . . . . .310.7 0.0 327.9 261.5
FideIity China Sp . . . . .86.7 -0.3 114.3 70.0
FideIity European . .1122.0 1.0 1287.0 912.0
HeraId Inv Trust . . . . .522.0 4.0 545.5 419.0
HICL Infrastructu . . . .119.5 -0.2 121.3 112.7
Impax Environment .103.5 0.4 125.4 88.5
John Laing Infras . . .109.7 -0.1 110.6 103.4
JPMorgan American .929.0 -1.5 935.0 721.5
JPMorgan Asian In . .203.8 0.8 244.0 170.1
JPMorgan Emerging .565.5 -1.0 610.5 480.1
JPMorgan European .736.5 4.0 983.5 624.0
JPMorgan Indian I . . .400.4 4.9 459.0 313.1
JPMorgan Russian .573.5 0.0 741.0 415.1
Law Debenture Cor . .380.6 0.4 385.0 321.0
MercantiIe Inv Tr . . .1001.0 -1.0 1127.0 823.0
Merchants Trust . . . .392.0 0.6 431.8 341.5
Monks Inv Trust . . . .338.8 2.5 367.9 298.1
Murray Income Tru . .665.0 -0.5 673.0 568.0
Murray Internatio . . .981.0 3.5 991.5 818.5
PerpetuaI Income . . .269.0 0.7 276.0 236.5
PersonaI Assets T .34700.0 100.0 34729.030210.0
PoIar Cap TechnoI . .380.5 4.5 382.3 299.5
RIT CapitaI Partn . . .1240.0 1.0 1360.0 1173.0
Scottish Inv Trus . . . .488.0 0.0 524.0 417.0
Scottish Mortgage . .689.5 -1.5 781.0 565.0
SVG CapitaI . . . . . . . .266.5 3.5 279.8 165.1
TempIe Bar Inv Tr . . .922.0 1.5 952.0 791.0
TempIeton Emergin .629.5 4.0 684.5 497.0
TR Property Inv T . . .153.8 -0.1 206.1 136.2
TR Property Inv T . . . .70.5 -0.4 94.0 59.8
Witan Inv Trust . . . . .491.0 -1.3 533.0 401.5
3i Group . . . . . . . . . . .195.9 -2.4 313.3 166.9
3i Infrastructure . . . .124.3 1.3 124.3 113.4
Aberdeen Asset Ma .257.2 -3.0 265.8 167.8
Ashmore Group . . . .389.3 -3.3 420.0 301.5
Brewin DoIphin Ho . .151.6 -2.4 184.7 113.7
CameIIia . . . . . . . . . .9417.0 117.010950.0 8800.0
CharIes TayIor Co . . .142.5 5.5 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .369.5 4.5 445.0 304.3
CIose Brothers Gr . . .740.5 0.5 875.0 590.0
CoIIins Stewart H . . . .99.0 1.0 99.0 48.5
F&C Asset Managem .69.6 0.5 88.1 56.1
Hargreaves Lansdo .481.5 -2.2 646.5 402.5
HeIphire Group . . . . . . .2.1 -0.0 17.4 1.4
Henderson Group . . .126.3 0.2 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .395.8 6.2 541.5 311.6
IG Group HoIdings . .479.8 2.6 502.5 393.6
Intermediate Capi . . .280.7 -1.5 345.0 197.9
InternationaI Per . . . .222.6 -2.9 388.8 148.5
InternationaI Pub . . . .118.3 -1.3 121.5 108.6
Investec . . . . . . . . . . .395.3 -3.2 522.0 318.4
IP Group . . . . . . . . . . .113.0 0.0 117.5 36.0
Jupiter Fund Mana . .252.6 -4.1 331.6 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .57.1 -1.1 64.8 54.0
London Finance & . . .22.5 0.0 23.8 19.0
London Stock Exch .942.0 -8.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.8 0.3 19.8 8.9
Man Group . . . . . . . . .134.8 -1.3 294.7 104.5
Paragon Group Of . .186.6 3.3 206.1 134.6
Provident Financi . .1054.0 5.0 1124.0 915.0
Rathbone Brothers .1275.0 -15.0 1308.0 977.0
Record . . . . . . . . . . . . .12.0 0.0 35.5 11.0
RSM Tenon Group . . . .5.7 0.1 54.3 5.5
Schroders . . . . . . . .1598.0 3.0 1906.0 1183.0
Schroders (Non-Vo .1273.0 2.0 1554.0 970.0
TuIIett Prebon . . . . . .332.6 -1.4 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 38.0
BT Group . . . . . . . . . .216.0 0.4 218.1 161.0
CabIe & WireIess . . . .34.4 -1.3 51.2 31.3
CabIe & WireIess . . . .27.0 -0.8 73.3 14.2
COLT Group SA . . . . .97.0 2.0 156.2 84.1
KCOM Group . . . . . . . .70.2 -0.9 84.0 58.5
TaIkTaIk TeIecom . . .142.7 0.7 150.3 118.9
TeIecomPIus . . . . . . .641.5 -5.5 802.0 440.0
Booker Group . . . . . . .75.7 1.4 80.0 54.5
Greggs . . . . . . . . . . . .552.0 -4.0 565.6 445.0
Morrison (Wm) Sup .295.0 -2.3 328.0 268.5
Ocado Group . . . . . . .102.9 -0.8 239.2 52.9
Sainsbury (J) . . . . . . .306.0 1.8 383.0 263.5
Tesco . . . . . . . . . . . . .322.7 1.2 420.1 312.4
Associated Britis . .1223.0 4.0 1228.0 940.0
Cranswick . . . . . . . . .818.5 -3.0 862.0 588.5
Dairy Crest Group . . .331.6 -1.9 409.7 311.0
Devro . . . . . . . . . . . . .285.4 -8.6 300.0 232.0
Tate & LyIe . . . . . . . . .699.0 -2.0 720.5 520.0
UniIever . . . . . . . . . .2076.0 7.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .562.0 -0.5 664.0 413.5
Centrica . . . . . . . . . . .295.7 -1.8 341.9 278.8
InternationaI Pow . . .336.2 -0.9 347.0 279.4
NationaI Grid . . . . . . .643.5 -1.0 649.5 543.5
Pennon Group . . . . . .699.5 -1.5 737.5 584.5
Severn Trent . . . . . .1528.0 -12.0 1600.0 1375.0
United UtiIities . . . . .599.5 -5.0 637.0 551.0
Cookson Group . . . . .637.0 -12.5 724.5 395.8
Rexam . . . . . . . . . . . .384.4 -1.1 400.0 299.8
RPC Group . . . . . . . .384.1 -6.8 393.2 231.5
Price Chg High Low
Bovis Homes Group .503.5 -10.5 516.6 326.5
Persimmon . . . . . . . .604.0 -5.0 609.5 374.0
Reckitt Benckiser . .3578.0 -4.0 3597.0 3015.0
Redrow . . . . . . . . . . . .128.5 -1.1 136.2 103.5
TayIor Wimpey . . . . . . .48.5 -0.3 49.0 28.7
Bodycote . . . . . . . . . .344.0 -3.5 397.7 225.6
Fenner . . . . . . . . . . . .454.4 -3.6 465.8 280.0
IMI . . . . . . . . . . . . . . . .966.0 -16.5 1119.0 636.5
MeIrose . . . . . . . . . . .383.0 -3.1 388.0 268.0
Northgate . . . . . . . . . .239.7 0.7 346.7 190.9
Rotork . . . . . . . . . . .2019.0 -19.0 2041.0 1501.0
Spirax-Sarco Engi . .2044.0 -38.0 2089.0 1649.0
Weir Group . . . . . . .2152.0 -34.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .412.7 -19.7 460.5 315.0
Ferrexpo . . . . . . . . . . .330.8 -5.3 499.0 238.7
TaIvivaara Mining . . .286.5 -1.8 589.0 195.2
BBAAviation . . . . . . .208.6 -2.6 229.0 156.0
Stobart Group Ltd . . .124.7 -0.3 155.0 112.0
AdmiraI Group . . . . .1043.0 32.0 1754.0 787.0
AmIin . . . . . . . . . . . . .360.4 -3.6 427.0 270.6
BeazIey . . . . . . . . . . . .150.1 0.2 150.7 109.6
Informa . . . . . . . . . . . .421.8 -3.2 449.0 313.9
ITE Group . . . . . . . . . .232.7 -4.5 258.2 157.7
ITV . . . . . . . . . . . . . . . . .79.6 1.5 93.5 51.7
Johnston Press . . . . . . .6.5 0.1 12.8 4.1
MecomGroup . . . . . .194.3 -5.8 310.0 134.5
Moneysupermarket. .121.4 0.7 123.2 84.8
Pearson . . . . . . . . . .1218.0 -8.0 1255.0 1013.0
PerformGroup . . . . .277.5 2.0 280.0 150.0
Reed EIsevier . . . . . .550.5 -7.0 578.0 461.3
Rightmove . . . . . . . .1339.0 -3.0 1408.0 857.0
STV Group . . . . . . . . .108.0 -0.5 168.0 76.3
Tarsus Group . . . . . .147.5 0.0 165.0 119.5
Trinity Mirror . . . . . . . .49.0 0.0 84.3 37.5
UBM . . . . . . . . . . . . . .590.5 0.0 712.5 416.0
UTV Media . . . . . . . . .120.0 -0.3 150.0 92.5
WiImington Group . . .86.0 1.6 169.6 78.5
WPP . . . . . . . . . . . . . .799.5 -17.0 846.5 578.0
YeII Group . . . . . . . . . . .4.5 -0.0 11.0 3.4
African Barrick G . . .461.5 9.7 616.5 393.5
AIIied GoId Minin . . . .119.9 0.4 281.3 34.4
AngIo American . . .2715.5 25.5 3360.5 2138.5
AngIo Pacific Gro . . .315.0 0.0 350.0 237.9
Antofagasta . . . . . . .1326.0 -7.0 1491.0 900.5
Aquarius PIatinum . .146.6 0.9 405.5 136.7
BHP BiIIiton . . . . . . .2080.0 2.5 2631.5 1667.0
CatIin Group Ltd. . . .418.1 -1.9 449.0 334.0
Hiscox Ltd. . . . . . . . . .408.3 -3.7 424.7 340.5
Jardine LIoyd Tho . . .680.0 7.5 764.5 576.0
Lancashire HoIdin . . .783.0 -1.0 790.0 532.5
RSA Insurance Gro . .113.6 -0.9 141.8 99.6
Aviva . . . . . . . . . . . . . .375.6 -7.0 477.9 275.3
LegaI & GeneraI G . . .121.8 -1.1 124.1 89.8
OId MutuaI . . . . . . . . .158.0 -1.4 159.7 98.1
Phoenix Group HoI . .557.5 -3.5 688.0 451.1
PrudentiaI . . . . . . . . .715.5 -8.5 777.0 509.0
ResoIution Ltd. . . . . .260.8 -4.2 316.1 229.5
St James's PIace . . . .373.3 -1.7 379.2 294.0
Standard Life . . . . . . .233.9 -1.7 244.7 172.0
4Imprint Group . . . . .243.0 -12.0 295.0 200.0
Aegis Group . . . . . . .169.0 -1.7 171.3 115.7
BIoomsbury PubIis . .121.3 -2.0 138.0 91.3
British Sky Broad . . .690.0 2.0 850.0 618.5
Centaur Media . . . . . . .45.1 1.6 69.0 32.5
Chime Communicati .224.3 -0.8 298.5 163.0
Creston . . . . . . . . . . . .59.3 2.8 121.0 47.0
DaiIy MaiI and Ge . . .431.2 -4.8 562.0 343.4
Euromoney Institu . .723.0 -4.0 738.0 522.5
Future . . . . . . . . . . . . . .12.3 -0.9 27.5 8.3
Haynes PubIishing . .198.0 1.0 257.0 192.0
Huntsworth . . . . . . . . .42.4 0.1 79.3 32.3
Bumi . . . . . . . . . . . . . .746.0 0.0 753.0 740.0
Centamin (DI) . . . . . . . .91.3 -1.6 154.2 78.5
Eurasian NaturaI . . .723.0 1.0 985.5 522.0
FresniIIo . . . . . . . . . .1750.0 3.0 2150.0 1302.0
GemDiamonds Ltd. .233.3 -6.4 306.0 179.8
GIencore Internat . . .438.4 1.9 531.1 348.0
HochschiId Mining . .501.0 1.2 680.0 365.9
Kazakhmys . . . . . . .1163.0 16.0 1493.0 730.0
Kenmare Resources . .61.5 5.1 62.0 31.0
Lonmin . . . . . . . . . . .1040.0 -3.0 1880.0 941.0
New WorId Resourc .514.0 -4.5 1060.0 409.4
PetropavIovsk . . . . . .738.5 42.0 1090.0 543.5
PoIymetaI Interna . .1045.0 -39.0 1175.0 877.0
RandgoId Resource 7135.0 0.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3699.5 -6.5 4595.0 2712.5
Vedanta Resources 1453.0 95.0 2518.0 928.0
Xstrata . . . . . . . . . . .1210.0 3.0 1550.0 764.0
Inmarsat . . . . . . . . . . .479.4 2.3 685.5 389.3
Vodafone Group . . . .175.8 0.4 182.7 155.1
Genesis Emerging . .511.5 1.5 548.5 424.0
Afren . . . . . . . . . . . . . .132.7 -0.9 171.2 73.6
BG Group . . . . . . . . .1480.5 -28.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .497.7 -1.6 502.1 363.2
Cairn Energy . . . . . . .347.0 -7.2 531.8 249.3
EnQuest . . . . . . . . . . .121.8 0.2 158.5 85.7
Essar Energy . . . . . .123.0 -2.1 525.5 120.0
ExiIIon Energy . . . . . .242.0 -3.0 469.7 184.2
Heritage OiI . . . . . . . .188.9 0.4 332.2 160.0
Ophir Energy . . . . . . .365.5 -3.6 379.9 184.5
Premier OiI . . . . . . . . .426.3 -4.9 521.0 310.0
RoyaI Dutch SheII . .2303.5 17.5 2402.0 1883.5
RoyaI Dutch SheII . .2333.5 16.0 2489.0 1890.5
SaIamander Energy .246.8 -1.0 317.6 182.3
Soco Internationa . . .316.6 1.6 400.0 278.0
TuIIow OiI . . . . . . . . .1543.0 -58.0 1601.0 945.5
Amec . . . . . . . . . . . . .1111.0 3.0 1207.0 740.5
Hunting . . . . . . . . . . .792.5 13.5 845.0 530.0
Kentz Corporation . .471.5 -1.1 508.0 347.0
LampreII . . . . . . . . . . .323.1 -3.9 395.2 220.7
Petrofac Ltd. . . . . . .1566.0 13.0 1603.0 1108.0
Wood Group (John) .708.0 -5.5 720.0 469.9
Burberry Group . . . .1439.0 3.0 1600.0 1092.0
PZ Cussons . . . . . . . .311.4 -3.2 387.9 285.0
Supergroup . . . . . . . .558.0 5.0 1646.0 435.2
AstraZeneca . . . . . .2841.5 -2.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .348.7 1.6 350.9 210.1
Genus . . . . . . . . . . . .1127.0 18.0 1137.8 853.5
GIaxoSmithKIine . . .1413.0 6.0 1497.0 1138.5
Hikma Pharmaceuti .736.0 7.5 869.0 555.5
Shire PIc . . . . . . . . . .2225.0 -27.0 2300.0 1671.0
CapitaI & Countie . . .192.3 -1.7 203.7 144.5
Daejan HoIdings . . .2886.0 -54.0 3030.0 2282.0
F&C CommerciaI Pr .102.9 -0.1 108.0 92.6
Grainger . . . . . . . . . . .104.5 -0.8 133.2 77.3
London & Stamford .113.3 -0.4 140.0 103.9
SaviIIs . . . . . . . . . . . . .353.9 -8.4 427.1 256.2
UK CommerciaI Pro . .73.9 0.3 85.5 65.1
Unite Group . . . . . . . .190.7 -1.3 224.1 152.9
Big YeIIow Group . . .290.0 -10.7 344.4 218.0
British Land Co . . . . .477.3 -6.6 629.5 444.0
CapitaI Shopping . . .339.9 -3.0 408.6 288.7
Derwent London . . .1700.0 -48.0 1880.0 1400.0
Great PortIand Es . . .348.5 -5.7 445.0 312.9
Hammerson . . . . . . . .395.9 -5.8 490.9 345.2
Hansteen HoIdings . . .73.8 -0.3 89.5 68.0
Land Securities G . . .683.0 -8.5 885.0 612.0
SEGRO . . . . . . . . . . . .231.7 -5.0 331.3 195.0
Shaftesbury . . . . . . . .497.5 -8.0 539.0 441.2
Aveva Group . . . . . .1692.0 12.0 1799.0 1298.0
Computacenter . . . . .409.6 -4.2 490.0 324.7
Fidessa Group . . . . .1741.0 -25.0 2109.0 1444.0
Invensys . . . . . . . . . . .214.1 -5.5 357.8 180.9
Logica . . . . . . . . . . . . .81.4 1.1 146.1 59.0
Micro Focus Inter . . .449.4 -2.0 458.4 242.9
Misys . . . . . . . . . . . . .338.0 7.9 420.2 214.9
Sage Group . . . . . . . .305.6 -2.6 310.1 231.7
SDL . . . . . . . . . . . . . . .670.0 0.0 711.5 586.0
TeIecity Group . . . . . .681.0 -1.5 694.5 450.5
Aggreko . . . . . . . . . .2168.0 -20.0 2191.3 1394.5
Ashtead Group . . . . .243.9 -2.1 252.5 99.4
Atkins (WS) . . . . . . . .760.0 -5.5 820.0 490.2
Babcock Internati . . .721.5 -18.5 758.0 542.0
Berendsen . . . . . . . . .467.0 -6.0 568.0 402.7
BunzI . . . . . . . . . . . . .908.5 -16.0 924.5 676.5
Cape . . . . . . . . . . . . . .439.9 3.3 591.5 295.0
Capita . . . . . . . . . . . . .646.5 -10.0 786.5 611.5
CariIIion . . . . . . . . . . .334.1 -5.2 403.2 281.0
De La Rue . . . . . . . . .979.0 -6.0 1001.0 699.0
DipIoma . . . . . . . . . . .392.2 -3.3 425.5 263.5
EIectrocomponents .242.9 -2.8 294.9 182.2
Experian . . . . . . . . . . .942.0 -18.0 960.0 665.0
FiItrona PLC . . . . . . . .407.5 1.4 410.5 293.0
G4S . . . . . . . . . . . . . . .278.6 -2.4 291.0 219.9
Hays . . . . . . . . . . . . . . .81.0 -0.2 130.0 58.9
Homeserve . . . . . . . .226.0 -8.4 532.0 218.5
Howden Joinery Gr . .116.2 -0.1 122.7 93.1
Interserve . . . . . . . . . .313.0 -4.5 341.3 239.8
Intertek Group . . . . .2238.0 -23.0 2265.0 1738.0
MichaeI Page Inte . . .438.1 6.0 567.0 323.0
Mitie Group . . . . . . . .264.2 -2.6 271.0 195.9
PayPoint . . . . . . . . . . .579.5 6.5 585.0 327.3
Premier FarneII . . . . .216.0 -4.8 308.8 144.5
Regus . . . . . . . . . . . . .116.4 1.4 119.0 64.0
RentokiI InitiaI . . . . . . .79.6 -1.0 100.9 58.2
RPS Group . . . . . . . . .228.1 -1.7 253.0 156.6
Serco Group . . . . . . .540.0 -6.0 618.5 458.0
Shanks Group . . . . . .106.3 -0.7 130.9 90.8
SIG . . . . . . . . . . . . . . .111.5 0.5 153.5 77.0
Travis Perkins . . . . .1011.0 3.0 1090.0 715.0
WoIseIey . . . . . . . . .2419.0 -46.0 2469.0 1404.0
ARM HoIdings . . . . . .582.0 -4.0 645.0 464.0
CSR . . . . . . . . . . . . . .260.9 -14.1 392.0 154.1
Imagination Techn . .603.0 -7.5 630.5 296.9
Spirent Communica .136.2 2.3 160.0 105.8
British American . .3114.0 0.5 3148.0 2300.0
ImperiaI Tobacco . .2481.0 -19.0 2519.0 1878.0
Betfair Group . . . . . . .877.0 -3.0 1030.0 567.0
Bwin.party Digita . . .167.7 -1.3 204.0 100.6
CarnivaI . . . . . . . . . .1942.0 -39.0 2808.0 1742.0
Compass Group . . . .630.0 -7.5 641.0 512.5
Domino's Pizza UK . .476.3 -3.3 526.0 377.0
easyJet . . . . . . . . . . . .464.5 -4.9 476.1 301.0
FirstGroup . . . . . . . . .302.2 -0.1 373.0 300.0
Go-Ahead Group . . .1319.0 0.0 1598.0 1190.0
Greene King . . . . . . .503.5 -3.0 521.5 410.0
InterContinentaI . . .1423.0 -17.0 1445.0 955.0
InternationaI Con . . .169.9 -3.5 258.7 132.0
JD Wetherspoon . . . .407.0 2.1 468.3 380.5
Ladbrokes . . . . . . . . .154.6 0.1 155.7 114.0
Marston's . . . . . . . . . . .98.4 -1.4 112.0 84.6
MiIIennium& Copt . .488.0 -1.2 598.5 371.2
MitcheIIs & ButIe . . . .270.2 -6.4 336.8 215.6
NationaI Express . . .225.9 -3.1 270.2 201.6
Rank Group . . . . . . . .129.9 -1.1 153.7 109.5
Restaurant Group . . .299.1 -5.1 335.0 254.9
Spirit Pub Compan . . .54.8 -1.0 57.8 35.3
Stagecoach Group . .268.0 -4.3 287.4 200.0
TUI TraveI . . . . . . . . . .207.3 -2.9 250.0 136.7
Whitbread . . . . . . . .1706.0 -20.0 1834.0 1409.0
WiIIiamHiII . . . . . . . . .236.3 -1.2 244.1 176.8
Abcam . . . . . . . . . . . .327.5 -4.5 460.0 320.0
Advanced MedicaI . . .91.0 0.5 96.0 64.8
AIbemarIe & Bond . .355.0 -17.0 400.1 281.0
Amerisur Resource . .22.8 0.0 29.0 9.5
Andor TechnoIogy . .560.0 17.0 685.0 387.1
ArchipeIago Resou . . .67.8 -1.6 79.0 55.5
ASOS . . . . . . . . . . . .1875.0 -17.0 2468.0 1142.0
AureIian OiI & Ga . . . .21.3 -0.8 92.0 16.0
Avanti Communicat .269.5 -3.8 587.0 248.5
BIinkx . . . . . . . . . . . . . .86.0 -2.5 158.0 50.5
Borders & Souther . . .78.8 -1.8 84.0 43.5
BowLeven . . . . . . . . .117.8 -1.3 382.3 62.0
Brooks MacdonaId 1202.5 5.0 1372.5 940.0
CIuff GoId . . . . . . . . . . .95.0 -0.8 125.8 66.5
Cove Energy . . . . . . .154.5 -2.3 162.3 61.0
Daisy Group . . . . . . .108.0 2.8 127.0 88.0
EMIS Group . . . . . . . .422.5 1.0 580.0 397.5
Faroe PetroIeum . . . .172.5 2.0 190.0 130.0
GuIfsands PetroIe . . .167.5 -5.5 342.0 142.5
GWPharmaceuticaI . .89.0 -2.6 130.0 78.5
H&T Group . . . . . . . . .330.0 0.0 395.0 277.0
Hargreaves Servic .1215.0 0.0 1220.0 855.0
HeaIthcare Locums . . . .3.0 -0.0 3.2 3.0
Immunodiagnostic . .455.0 -15.5 1218.0 288.8
ImpeIIamGroup . . . .321.5 -1.0 387.5 225.0
Iomart Group . . . . . . .142.3 -2.8 151.0 85.5
James HaIstead . . . . .503.5 3.5 516.9 410.0
London Mining . . . . .292.3 0.3 436.5 257.5
Lupus CapitaI . . . . . .125.0 -1.0 150.0 86.0
M. P. Evans Group . .446.0 -6.0 475.0 371.0
Majestic Wine . . . . . .416.0 -4.0 510.0 315.0
May Gurney Integr . .296.0 3.5 302.0 234.0
Monitise . . . . . . . . . . . .37.8 1.3 40.0 20.5
MuIberry Group . . . .1920.0 5.0 1951.0 1065.0
Nanoco Group . . . . . . .64.0 -0.3 93.3 38.0
NauticaI PetroIeu . . .349.0 -3.5 452.0 223.5
NichoIs . . . . . . . . . . . .627.5 -2.5 630.0 410.0
Numis Corporation . . .99.0 -0.3 122.5 72.0
Pan African Resou . . .17.8 0.6 17.8 9.5
Patagonia GoId . . . . . .41.0 1.3 70.0 36.8
Prezzo . . . . . . . . . . . . .65.6 1.1 71.5 53.5
Pursuit Dynamics . . . .88.5 -1.0 399.3 67.0
Rockhopper ExpIor .379.5 -3.3 387.1 141.0
RWS HoIdings . . . . . .518.5 13.3 520.6 350.0
Secure Trust Bank .1047.5 0.0 1070.0 755.0
Songbird Estates . . .112.5 3.5 160.3 103.0
VaIiant PetroIeum . . .493.8 -2.0 645.0 400.0
Young & Co's Brew . .667.5 7.5 712.0 565.0
Kenmare Resources . .61.5 9.0
Vedanta Resources .1453.0 7.0
PetropavIovsk . . . . . .738.5 6.0
Croda Internationa .2123.0 4.5
AdmiraI Group . . . . .1043.0 3.2
Oxford Instruments .1135.0 3.0
Domino Printing Sc .660.0 2.8
Misys . . . . . . . . . . . . .338.0 2.4
African Barrick Go . .461.5 2.2
COLT Group SA . . . . .97.0 2.1
CSR . . . . . . . . . . . . . .260.9 -5.1
Kesa EIectricaIs . . . . .81.7 -4.7
Evraz . . . . . . . . . . . . .412.7 -4.6
Home RetaiI Group . .109.0 -3.8
CabIe & WireIess C . . .34.4 -3.6
TuIIow OiI . . . . . . . . .1543.0 -3.6
PoIymetaI Internat . .1045.0 -3.6
Homeserve . . . . . . . .226.0 -3.6
Big YeIIow Group . . .290.0 -3.6
BeIIway . . . . . . . . . . .794.0 -2.9
Risers FaIIers
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Tsy 5.000 12 . . . .100.14 -0.05 104.2 100.1
Tsy 5.250 12 . . . .101.39 -0.03 105.4 101.4
Tsy 9.000 12 . . . .103.89 0.00 111.2 103.3
Tsy 2.500 13 . . . .282.71 -0.02 287.7 280.1
Tsy 8.000 13 . . . . .112.02 -0.04 116.9 112.0
Tsy 4.500 13 . . . .104.22 -0.02 106.5 104.2
Tsy 5.000 14 . . . . .111.44 -0.03 112.9 109.3
Tsy 8.000 15 . . . .127.35 -0.03 129.2 123.8
Tsy 7.750 15 . . . .100.00 0.00 106.1 99.4
Tsy 4.750 15 . . . . .114.32 -0.03 115.4 109.0
Tsy 2.500 16 . . . .340.36 -0.01 344.2 313.6
Tsy 4.000 16 . . . . .113.56 0.01 114.7 105.5
Tsy 1.250 17 . . . . .114.91 0.04 116.6 107.2
Tsy 12.000 17 . . .120.66 0.00 128.6 119.4
Tsy 8.750 17 . . . .140.34 -0.28 141.9 133.3
Tsy 5.000 18 . . . .121.32 0.06 122.5 110.5
Tsy 4.500 19 . . . . .119.29 0.04 120.7 106.4
Tsy 3.750 19 . . . . .114.08 0.06 115.6 100.5
Tsy 2.500 20 . . . .361.70 0.12 367.1 316.0
Tsy 4.750 20 . . . .121.43 0.06 123.5 107.7
Tsy 8.000 21 . . . .149.90 0.08 153.4 134.8
Tsy 4.000 22 . . . . .115.24 0.11 118.2 100.0
Tsy 1.875 22 . . . .125.13 0.24 129.1 112.2
Tsy 2.500 24 . . . .324.18 0.19 334.7 278.3
Tsy 5.000 25 . . . .126.24 0.14 130.6 108.5
Tsy 4.250 27 . . . . .117.20 0.26 122.7 99.1
Tsy 1.250 27 . . . .120.91 0.40 127.0 105.9
Tsy 6.000 28 . . . .141.37 0.26 148.0 120.7
Tsy 4.125 30 . . . .307.86 0.33 322.8 265.7
Tsy 4.750 30 . . . .123.52 0.28 130.5 104.3
Tsy 4.250 32 . . . . .116.00 0.30 123.1 97.5
Tsy 4.250 36 . . . . .115.96 0.32 123.9 96.8
Tsy 4.750 38 . . . .125.18 0.37 134.2 105.0
Tsy 4.500 42 . . . .121.58 0.44 130.8 101.3
% %
Wealth Management | Markets
These Olympic Games are a chance
to show the world what BAs about
Frank van der Post is
the man making sure
that British Airways
gets a flying start as
2012s airline partner
Q.
WHAT WAS YOUR BRANDS
PRIMARY REASON FOR BEING
INVOLVED WITH THE GAMES?
A.
Were a tier one sponsor for London
2012, and although weve spon-
sored British athletes before, its the
first time weve been an official Olympic
partner.
This summers Olympic and Paralympic
Games are the opportunity of a lifetime, a
unique opportunity to get behind Britain
and support our teams. The Olympic and
Paralympic Games are amazing because
they offer association not just with one
sport but the full range. And as the Games
are a chance to show the world what
Britain is all about, thats a natural
connection for us as our identity is
an extension of Britain in some
ways.
Were very proud as part of
our partnership to be trans-
porting the Olympic flame
from Athens to Culdrose in
Cornwall and then on to dif-
ferent destinations in the
relay across the country and
its islands. The safety guys
have done a lot of work with
the CAA to get it approved obvi-
ously its fairly unusual these days
to transport a flame. Although only 15
years ago we used to smoke on planes. Our
number one priority is safety and we
wouldnt compromise on that.
Q.
HOW DID YOU STRUCTURE THE CASE
FOR INVOLVEMENT TO THE BOARD?
A.
I think it was the same arguments
then as it is today. There were four
pillars. First we wanted to reinforce
our leadership in aviation in Britain.
Second, we wanted at the same time to
create an emotional connection, a passion
for the brand. Internal engagement was
important for us too. This gave us a way to
rally all our colleagues around a common
cause and to build pride within the organ-
isation. And finally we wanted to max-
imise the commercial opportunities that
come with Olympic partnership.
The airline industry has had a hard last
10 years, and this is a large financial com-
mitment. You need to make sure you
spend the money
wisely and get a good
return. For us, we needed
to realise all four of our pil-
lars to make it work. It wasnt a case
of sign and then hang back. It is a lot of
work to really activate a partnership like
this.
Q.
HOW HAVE YOU STRUCTURED YOUR
BUSINESS TO MAXIMISE OLYMPIC
OPPORTUNITIES?
A.
We were trying to think not just
about how to be a sponsor but to
think about the longer-term impact
over multiple years.
Weve been sponsoring British athletes
working up to the Games, with discount-
ed tickets and baggage allowances. Thats
very targeted but its an initiative were
quite proud of.
Our Great Britons awards of travel for
highly creative individuals tried to cap-
ture British talent at more than sport, and
helped us to build up an Olympic focus
very early. And were currently planning
for the post-Olympics period.
Q.
HOW DID THE ANNOUNCEMENT THAT
YOU WERE INVOLVED AFFECT YOUR
BUSINESS?
A.
I think people generally recognise
that BA is an Olympic sponsor, so
whatever we are doing is working.
We had two key criteria: we wanted people
to know that we were a partner and then
we wanted to make an emotional engage-
ment, to share the pride of being part of a
British success. Ultimately, creating that
excitement, being part of the winning
spirit will help us sell more tickets, which
is what it is all about. And so weve recent-
ly launched a new 2012. Were ready. To
fly. To serve. campaign.
Q.
WHAT HAS SURPRISED YOU MOST
ABOUT YOUR INVOLVEMENT TO
DATE?
A.
It is my first Olympics Id worked
on two Super Bowls in America,
which are quite large, a good warm-
up, but nowhere near this. I think the
opportunity and the excitement are
remarkable, and the sheer magnitude of
what needs to happen. Were immensely
proud to play a small role in that.
Theres also a tremendous impact in
terms of internal engagement. Were find-
ing colleagues working together as they
usually wouldnt. Paint bay engineers
spending weeks working out how to get
the designers artwork to come out per-
fectly. In a big organisation like BA, it can
easily go the other way and its good to
see.
Q.
WHAT ADVICE CAN YOU GIVE
NON-OFFICIAL PARTNERS TO HELP
THEM MAKE THE MOST OF THE
COMMERCIAL OPPORTUNITIES
PRESENTED BY THE OLYMPICS?
A.
A lot of people are coming to
Britain for the Games and it will be
watched by millions more. People
should sign up as a partner with the
London organising committee and be part
of the biggest Games on earth in the best
city on earth.
Frank van der Post is managing director,
brands and customer experience for British
Airways.
Id worked on
Super Bowls
in America: a
good warmup
but nowhere
near this size
156 DAYS TO GO
COUNTDOWN
TO THE LONDON
2012
OLYMPIC
GAMES
Q A
&
Business Features
28
WORDS BY MARC SIDWELL
Keeping the flame of BAs brand alight Picture: Nick Morrish
A useful tool for the
companies that know
how to use it
Picture: GETTY
S
OME debates, it seems, go unre-
solved for years despite their impor-
tance. The future of corporate
reporting is one such issue.
It is now more than five years since the
leaders of the biggest six accounting firms
declared that the reporting system was
broken. They called for quarterly static
financial reports to be replaced by real-
time reporting, bringing in a much wider
range of performance measures. And they
argued that more non-financial informa-
tion, customised to the user, and more eas-
ily accessible, would have to be issued by
companies as part of a process of bringing
corporate reporting into the digital era.
In many ways, of course, 2006 seems
like a different world. Post-global financial
crisis, the pressing issues for companies
have moved on from the boom days and
debates about financial reporting may not
be top of the immediate agenda for many.
But with more pressure than ever on
corporate performance, its time to take
another look at whether the time and
effort that still goes into company reports
is justified.
To find out if corporate reports still have
a future, ACCA has surveyed 500 investors
and other users in the UK, US, and Canada
to see how they perceive the usefulness of
annual reports after the global financial
crisis.
Given the resources they expend on the
annual report, companies may find it reas-
suring that 50 per cent of respondents still
named the annual report as their pri-
mary, or indeed only, source of informa-
tion about a company.
Perhaps those who argue that the tradi-
tional annual report no longer has any
value are guilty, at least, of exaggeration.
In fact, a majority of users said they now
tended to read reports more carefully
than before the crisis.
Nonetheless, there were many criti-
cisms of annual reports: 47 per cent said
they were too long; 40 per cent too general
purpose to be useful; 35 per cent back-
ward-looking; and another 35 per cent too
complex.
Of those who found reports too com-
plex, more than two-thirds blamed report-
ing standards, as well as legal
requirements. This fits in with some earli-
er ACCA research that found report users
and preparers are finding International
Financial Reporting Standards overly and
unnecessarily complex. Standard-setters
still have a bit of work to do, it would
seem.
Discouragingly, more respondents dis-
agreed than agreed that information pro-
vided in annual reports was clear and
concise. This is worrying given that the
issue of clarity was rated highly in terms
of importance elsewhere in the survey. Is
this just the poor state of reporting as
practised by companies, or is the format of
the report itself causing the problems?
Either way it is an indictment of the cur-
rent state of reports, given that so many
respondents still rely on them.
So what did the users want to see? The
biggest single answer (with 71 per cent)
was enhanced reporting on risks; perhaps
not surprising, but definitive nonetheless.
Regulators, such as the UKs Financial
Reporting Council (FRC), have put this to
the top of their agenda, which is a wise
move in light of our research. The FRCs
cutting clutter initiative to reduce the
amount of non-essential material in
reports also appears timely.
Despite standard-setters asserting that
investors are the primary audience for the
annual report a view ACCA would
strongly endorse there was still a belief
that the variety of audiences using the
report had led to a lack of focus by compa-
nies. And, more worryingly, as many
respondents disagreed as agreed that
standards themselves encouraged compa-
nies to provide a correctly balanced view
of their performance, including bad news
as well as good. Moreover, almost half of
the investors and report users we spoke to
believed too much promotional material
had crept into annual reports, which
undermined the concept of neutrality
that must underpin any meaningful
report.
There were some interesting findings in
terms of emerging issues too. Notably,
while the value of social and environmen-
tal data had declined in immediate impor-
tance, as far as many investors were
concerned, the advent of integrated
reporting appeared to hold genuine hope
of reversing this trend. Most replied that
inclusion of social or environmental infor-
mation in an integrated report would add
value.
This is a finding which will give the
International Integrated Reporting
Council (IIRC) a reason to be optimistic
over the next two years as it works on an
integrated reporting framework that is to
be unveiled by the end of 2013.
A move closer to more timely informa-
tion was also still a goal favoured by most,
indicating that the 2006 aspirations of
real-time reporting are still valid, even if
not enough has happened over the past
five years to take them forward.
While its still the primary source of
information about a company for half of
our respondents, the corporate report is
not the only source; more time-relevant
sources of information such as quarterly
reports, brokers reports and press releas-
es jostle for attention too. Users clearly
value more up-to-the-moment informa-
tion and the challenge for the profession
is how such information especially given
the emergence of social and mobile
media platforms offering immediate data
can be assured. This might be key to the
future of corporate reporting.
In the meantime, and ahead of the
imminent kick-off of corporate reporting
season, what conclusions should we
draw? Firstly, investors should be reposi-
tioned as the primary audience for the
report and be better engaged in its evolu-
tion. Secondly, more emphasis on risk and
forward-looking information is needed.
And lastly, a determined effort to prune
and simplify annual reports would help
all stakeholders.
Andrew Leck is head of ACCA UK.
Pressure mounts for
substantial changes
to company reports,
as a survey uncovers
ambiguous attitudes
ANDREW LECK
HEAD OF ACCA UK
Our corporate reporting is broken: but
new research says that it can be fixed
There was still a belief that
the variety of audiences
using the report had led to a
lack of focus by companies.
Business Features| Accounting
4%Yes, I nowreadthe annual report,
where I didnot previously do so
18%No, I still use other sources
21%No, the preliminary results still
effectively guide
57%Yes, I nowreviewthe annual
report more carefuly than I didpreviously
%
57%
21%
18%
4%
ANALYSIS l Have you
made greater use of annual
reports since the global
financial crisis?
3%strongly disagree
24%disagree
23%neither agree nor disagree
40%agree
9%strongly agree
1%dont know
%
23%
40%
9%
24%
1%
3%
ANALYSIS l Does excessive
promotional material
spoil reports?
Source: ACCA, Re-assessing the value of corporate reporting
Lifestyle | Motoring
Panamera GTS and BMWs
30
WORDS BY
RYAN BORROFF
P
ORSCHEs four-seat Panamera
has sold surprisingly well.
Though its pretty agile for such
a large, heavy motor its never
felt as sporty as it could have with a
character thats more luxury limou-
sine than dynamic sportscar, even in its
range-topping Turbo iteration. Its fair
to say that the earlier versions of the
Panamera have primarily been devel-
oped for quick and efficient sling shot
motorway delivery rather than railing
through mountain bends.
But its new GTS model GTS stands
for Grand Turismo S has been engi-
neered to be the sportiest yet. With a
better power-to-weight ratio than its
siblings, it incorporates a host of
tweaks that have reduced the cars
weight and increased its responsive-
ness to create a much more driver-
focused Panamera. Porsches
marketing people are keen to convince
us that the Panamera GTS is a real
sports car for four, which hasnt really
been the case up until now. The result
is a Panamera that is lighter and more
agile with a more emotional and
sporty personality.
To achieve this, Porsche has
reworked the 4.8-litre V8 engine from
the Panamera 4S. Upgraded to 430hp,
the GTS has 30hp more than
Panamera S and 4S. Porsches
eggheads have also tweaked the
Porsche Active Suspension
Management (PASM) system so its
sportier with tauter damping. Its also
lower by 10mm compared to other
Panamera models. In Sports Plus mode
when the optional Sports Chrono
Package option is fitted, as it was in
our test car the ride gets even more
hardcore. This lowers the chassis and
hardens the springs, reducing the
height by a further 15mm. The rear
axle track width is wider by 10mm, giv-
ing the car a more stable footprint; the
GTS also has upgraded brakes (the
same as those fitted on the Panamera
Turbo). In addition, the car gets the
same rear spoiler as the Turbo, which,
impressively, raises out of the body
before folding outwards and generates
downforce at speeds above 127mph.
Styling-wise the GTS has a sportier,
meaner look. The grille is wider and
the exhaust pipes, side skirts, side air
outlets and window trim is now in
glossy black. The GTS were driving
around the roads of Ronda is in
Carmine Red, a colour only available
on the GTS, which, I have to say, I dont
love. Inside the cockpit is in leather
and Alcantara. I particularly like the
twelve oclock marking on the steering
wheel but the GTS lettering in the
headrests not so much.
So how does the purist Panamera
drive? Well its excellent around the
track at Ascari, and way better than I
had expected. The car is fast with a 0-
62mph time of 4.5 seconds and on
track it feels it. That is not surprising.
What is surprising is how agile the GTS
feels. It grips brilliantly thanks to its
four-wheel drive system and, though,
at times, it still feels like a big car, it no
longer feels like a heavy one. Most of
the time you forget the long length of
the car stretching out behind you and
the car is a lot of fun. The noise is bru-
tal. The exhaust sound is enhanced
using Porsches Symposer technology
and the noise of the 4.8-litre V8 is chan-
neled into the cockpit. The Sports
mode sees the PDK transmission shift
Porsches new
Panamera shows
that two more seats
can still be sporty
MAZDA TO SHOW 6 SALOON IN GENEVA
Mazda is showing its new 6 saloon model at the Geneva motor show
next month. Called the Takeri concept, the car should be virtually identi-
cal to the production 6 which will go on sale next year. The saloon will
feature Mazdas highly efficient SkyActiv engines and lightweight sus-
pension so it should perform well in terms of emissions and economy.
CAR TALK
BMWS M6 COUPE
This is BMWs fastest and most powerful road car yet. Powered by a
560hp V8 M TwinPower Turbo engine, the M6 is capable of 0-62mph in
just 4.2 seconds and a top speed of 155mph. The flagship 6-Series has
near 50:50 weight distribution and has an M-specific chassis, so it should
handle well when it goes on sale in September. Price 93,795.
FORDS FIESTA-SIZED B-MAX
Will Ford's new B-MAX be the cleverest little car this year? The new
Fiesta-sized MPV has its central body B-pillars incorporated into the
doors so there's a 1.5m long opening on either side of the car. Easy to
get in and out of and you should be able to load large items through the
side doors too which should make Ikea trips a lot less stressful.
up later and down sooner and shifting
via its steering paddles I find its pretty
much on the money with my inten-
tions.
Out on the road these traits combine
with powerful acceleration on the
motorway enabling you to cruise along
in cool, efficient comfort. Sure the ride
is a little firmer but noise levels are still
refined. Which means to my mind the
Panamera has finally managed to be
what we hoped it would be. A four-
seater GT sports car that can deliver
you and your family over long dis-
tances to the best driving mountain
roads in Europe, yet still be agile
enough for you to enjoy yourself when
you get there.
THE VERDICT:
DESIGN hhhii
PERFORMANCE hhhhi
PRACTICALITY hhhhi
VALUE FOR MONEY hhhii
THE FACTS:
PORSCHE PANAMERA GTS
PRICE: 90,409
0-62MPH: 4.5sec
TOP SPEED: 179mph
CO2 G/KM: 256g/km
MPG COMBINED: 25.9mpg
O
ne in five of all BMWs sold is a
3-Series, so the introduction of
a completely new generation is
a very big deal for BMW and
for the legions of 3-Series fans around
the world.
BMW has brought a bunch of motor-
ing hacks to the Ronda region of Spain,
This version of
BMWs super
popular 3-series is
bigger and prettier
to pitch the new sixth generation F30 3-
Series against some of the best driving
roads in Europe. Happily, Im handed
the keys to the new mid-range 328i
although I will also drive the more fru-
gal 320d and because our numbers
are odd I elect to drive on my own.
What a lucky break, as my time behind
the wheel is doubled. And really, a full
day spent hoomphing a 328i through
mountain passes in the Spanish sun-
shine...whats not to like?
But is it any good? Well it should be.
The 3-Series has long been a de facto
choice for keen drivers. Its seductive
mix of rear-wheel drive entertainment
and sporty elegance combined with
enough load-carrying practically to
At the front a new sculptured bonnet
suggests speed while the two air-inlets
and wider headlamps emphasise the
cars width. At the rear the new 3-
Series looks squat, low and dynamic
thanks to the horizontal styling and
flared wheel arches.
Inside BMW has improved quality
and comfort. Three new trim levels
Sport, Modern and Luxury have been
added so there are now six to choose
from. Thanks to those bigger exterior
dimensions, inside the cabin is bigger,
with more headroom and legroom for
rear seat passengers and at 480-litres
the boot is 20-litres larger too. I drive
the 328i in the Modern trim and the
320d in Sport trim. In Modern spec the
31
get it past the missus has meant the 3-
Series is the clear leader amongst pre-
mium rivals like the Audi A4 and
Mercedes-Benz C-Class.
BMW has improved the 3-Series by
making it bigger and better. The chas-
sis is 47mm wider at the rear and
50mm longer and the body is stiffer
and lighter. The big news is that the
six-cylinder engine of its predecessor
is gone. Instead the car has a new,
cleaner and more fuel efficient four-
cylinder engine. Despite losing two
cylinders, the car is faster and the only
loss I can determine is the character-
ful six-cylinder engine noise.
Design-wise the new 3-Series man-
ages to be sportier and more elegant.
new-gen 3-series both score
BY RYAN BORROFF
MINI CLUBVAN
Just when you thought the Mini brand could not be extended any fur-
ther, Mini has announced it is introducing a van concept called the
Mini Clubvan at next month's Geneva motor show. Essentially a van
version of the Mini Clubman model, the van has just two seats and a
load bay. It could be on British roads later this year.
MASERATIS TURISMO SPORT
Maserati's beautiful GranTurismo S is being replaced by the sportier
GranTurismo Sport. The restyled coupe has a new front bumper design,
new LED headlights and more aggressive taillights. The interior has been
reworked with redesigned seats and steering wheel. Performance is
increased thanks to a V8 engine which is now capable of 460hp.
PEUGEOT HOT HATCH
Peugeot's original hot hatch is on the way back. The 208 GTi suc-
cessor to the iconic 205 GTi has the same 1.6-litre turbocharged
engine which powers the RCZ THP 200 sportscar. The three-door
hatch has a wider running track at front and rear and a rear roof
spoiler to generate downforce. It debuts in Geneva next month.
interior is trimmed in beige leather
and the instrument dials are coffee-
coloured. The wood trim on the dash-
board and doors is reminiscent of
fossilised driftwood. It remains to be
seen how British 3-Series buyers will
take to it. I dont like it at all. The Sport
trim I experience in the 320d is much
better. For the first time the 3-Series is
available with an iDrive controller and
a head-up display, tech that has only
been offered in the more expensive 5-
Series until now.
Driving on the mountain roads
around Ronda is exhilarating. The
cars 245bhp engine feels punchy and
the car feels agile and fast. Steering is
direct and the handling is simply
excellent. Available with a six-speed
manual or an eight-speed automatic
gearbox, the different Comfort, Eco
Pro and Sport driving mode settings
allow you to adapt the setup according
to where and how youre driving. The
ride, though firm, is comfortable. The
car soaks up most of the bumps with
ease and I find that there is little noise
inside (aside from some engine noise
in the 320d). I like the 328is eight-
speed semi-automatic gearbox the
best. Switching gears using the paddle
shifters whilst railing through the cor-
ners feels instinctive and I find the
experience even more enjoyable than
the manual box of the 320d.
So: bigger, faster, more fun, more
comfortable, cleaner and more eco-
nomical the 3-Series has upped its
game again. Just avoid the driftwood
of the Modern trim.
BMW has made the
new generation 3-
series even more com-
fortable and elegant
THE VERDICT:
DESIGN hhhhh
PERFORMANCE hhhhh
PRACTICALITY hhhhh
VALUE FOR MONEY hhhhi
THE FACTS:
BMW 328I
PRICE: 42,355
0-62MPH: 6.1secs
TOP SPEED: 155mph
CO2 G/KM: 147g/km
MPG COMBINED: 44.8mpg
T
E
R
R
E
S
T
R
I
A
L
WINTERWATCH
BBC2, 9PM
Chris Packham, Kate Humble and
Martin Hughes-Games find out how
the UKs wildlife is faring this winter in
the Brecon Beacons National Park.
LIVE UEFA CHAMPIONS LEAGUE
ITV1, 7.30PM
Marseille v Inter Milan (Kick-off
7.45pm). Coverage of this evenings
last-16 first-leg encounter at the
Stade Velodrome.
10 OCLOCK LIVE
CHANNEL 4, 10PM
Satirical current affairs show, with
David Mitchell, Jimmy Carr, Charlie
Brooker and Lauren Laverne, who
present debates and interviews.
BBC1
SKY SPORTS 1
5pmLive World Golf Championship
11pmBoots n All 12amUEFA
Champions League Highlights 1am
A League Football 1.30amFIFA
Futbol Mundial 2amBoots n All
3amUEFA Champions League
Highlights 4amA League Football
4.30amFIFA Futbol Mundial
5am-6amUEFA Champions League
Highlights
SKY SPORTS 2
7pmLive UEFA Champions League
10.15pmYoure on Sky Sports!
11.15pmTrans World Sport
12.15amSuperleague Netball
2.15amWatersports World
3.15am-4.15amPool
SKY SPORTS 3
7pmJudo 7.30pmTotal Rugby
8pmBoots n All. Super League
review. 9pmInternational
Twenty20 Cricket 10pmWomens
International Twenty20 Cricket
12amTotal Rugby 12.30am
Judo 1amKings of the Snow
1.30amInternational Twenty20
Cricket 2.30amWomens
International Twenty20 Cricket
4.30amTotal Rugby 5am-6am
Boots n All
BRITISH EUROSPORT
6.30pmWTA Tennis 7.30pm
Olympic Games: Together to London
7.55pmWednesday Selection 8pm
Riders Club: Magazine show for
equestrian fans. 8.05pmPGA Tour
Golf 9.05pmEuropean Tour Golf
9.35pmGolf Club 9.40pmSailing
10.10pmYacht Club 10.15pm
Wednesday Selection 10.30pm
WTA Tennis 12.30am-12.45am
Eurogoals
ESPN
7.30pmESPN Kicks: Extra 7.45pm
ESPN Films: Unguarded 9.15pm
NHRA Drag Racing 10.15pmESPN
Kicks: Extra 10.30pmGoal Show
11pmPremier League World
11.30pmESPN Press Pass 12am
UFC 144 Countdown Show1am
FIS Alpine Ski World Cup Report
1.30amSnowboard FIS World Cup
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
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and you must not use the
same digit twice in a block.
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KAKURO
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SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Cut in two (6)
4 Display (4)
6 Platform that rotates
a phonograph
record (9)
8 Tropical black cuckoo
of central America (3)
10 Cavalryman (6)
13 Apiece (4)
14 Shade of blue (5)
16 Letters on an
invitation to request
a response (inits) (4)
17 Contraption (6)
20 Of a female (3)
21 Thistle-like ower
head with edible
eshy leaves (9)
22 Eager (4)
23 Figurine (6)
DOWN
1 Obvious and dull (5)
2 Form of civil
disobedience (3-2)
3 Spanish conquistador who
conquered Mexico (6)
4 Marine plant (7)
5 Very small (3)
7 Chinese fruit having a
thin brittle shell (6)
9 Egyptian statesman
who nationalised the
Suez Canal (6)
11 Brief description
accompanying an
illustration (7)
12 Fireside mat (3)
15 Well-seasoned stew (6)
18 Belgian port famous for
its cloth industry (5)
19 Armistice (5)
21 Chest for the Covenant (3)
E
O
T
U
E D
X
R
S

4
4

4
P E N S S O R R Y
I C A S H E O
C A V A O S K
K E R S T W H I L E
S I N E W G D L
E D I F I C E
U R F R A N C H
S M A R T A L E C I
E B E S E T T
R L S O D A C
S L E P T R A S H
6 2 8 2 8 9
7 5 8 9 6 1 4 2
5 3 4 7 1 6 2 8 9
9 4 5 3 1 7 8
3 1 6 4 7 6
8 6 9 7 2 1 3 4
8 9 7 8 5 7
5 9 8 9 5 1 6
2 8 5 1 6 3 7 4 9
1 3 2 4 1 3 2 5
7 9 8 2 7 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PERSISTED
Lifestyle | TV&Games
Sport
BRITISH heavyweight David Hayes
camp have dismissed speculation he
could come out of retirement to set-
tle his grudge with Dereck Chisora in
the ring.
Haye and Chisora brawled wildly at
a press conference following the lat-
ters WBC title defeat to Vitali
Klitschko in Munich on Saturday
night. Chisora threatened to shoot fel-
low Londoner Haye amid the chaos,
which could yet see the two fighters
face criminal charges and possible
jail in Germany. But Hayes trainer
Adam Booth insists a date with Vitali
or a rematch with his brother
Waldimir remain the only fights the
31-year-old would consider.
David is still retired, he has no
plans to fight again, Booth said of
Haye, who jetted off on holiday yester-
day despite being wanted for ques-
tioning by police. Hes always said
the only people he would fight are
the Klitschko brothers and what hap-
pened doesnt change that one bit.
Haye rules out comeback
to settle Chisora grudge
BOXING
WALES have welcomed back inspira-

tional captain Sam Warburton for
Saturdays Six Nations crunch match
against England at Twickenham.
Warburton, who missed their most
recent fixture against Scotland with a
dead leg, is one of three changes to
the team that maintained their 100
per cent start.
Experienced lock Alun-Wyn Jones,
who has not played a Test since last
years World Cup, returns in place of
Ryan Jones, who had been acting as
skipper. Hooker Ken Owens is set for
his first start, with Matthew Rees and
Huw Bennett injured, as Wales look
to complete the Triple Crown.
The return of Warburton, who
starred in the teams run to the
World Cup semi-finals, underlines
the scale of the task facing Stuart
Lancasters emerging England.
Interim head coach Lancaster has
guided a youthful, new-look team to
Six Nations wins in Scotland and Italy
but faces by far his sternest examina-
tion this weekend. He too has fit-
again stars to call on in fly-half Toby
Flood, centre Manu Tuilagi and lock
Courtney Lawes, but must decide
whether they are ready to start.
Lancaster has profited from put-
ting faith in youngsters such as
Saracens pair Owen Farrell and Brad
Barritt, who have played integral
roles in earning two wins from two.
But the erstwhile Saxons coach,
who is bidding to land the job perma-
nently, must, like his own bosses,
decide whether big names outweigh
promising newcomers.
Warburton to
face England
in showdown
BY FRANK DALLERES
RUGBY UNION
SPORT | IN BRIEF
Man Utd cash down, revenue up
FOOTBALL: Manchester Uniteds cash
reserves plummeted 100m in the sec-
ond half of 2011 as they spent big on
signings and stadium improvements and
bond repurchasing. Revenue was up 10
per cent to 175m.
Vettel outpaces Lewis in Spain
FORMULA ONE: World champion
Sebastian Vettel set the pace as the sec-
ond pre-season test in Barcelona began
yesterday. Britains Lewis Hamilton was
third fastest, behind Nico Hulkenburg.
Tevez finally says sorry to City
FOOTBALL: Five months on from going
on strike Manchester City striker Carlos
Tevez has apologised sincerely and
unreservedly for his conduct.
MEARS CLOSES IN ON OLYMPIC DREAM
Results
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email sport@cityam.com
BRITAINS Chris Mears
secured an additional
place in the Olympic
3m springboard div-
ing competition with a
top 16 qualifying dis-
play at the FINA
World Cup in London.
Mearss performance
should all but secure
his Olympic selection,
subject to official con-
firmation by the
British Olympic
Association.
Picture: GETTY
Sport
34
All tickets are subject to availability.
Buy online at fulhamfc.com or call 0843 208 1234 (option 1)
Sunday 4th March
(Kick-Off 2.05pm)
Tickets from 30
adults and 10 juniors
FAMILY FUN DAY!
Villas-Boas on
brink as Blues
sunk in Naples
CITY A.M. VERDICT
A barmy match which could have seen
Chelsea return to Stamford Bridge with an
advantage ultimately leaves them facing an
enormous task to prolong their involvement
in this seasons Champions League
MAN OF THE MATCH
It seems almost unfair that a nation in
Argentina which boasts the likes of Lionel
Messi and Sergio Aguero can also call upon
the services of another bustling dribbler in
Ezequiel Lavezzi. He scored twice and was
a constant source of menace
KEY MOMENT
Having surrendered an advantage which
had been largely gifted to them, the
momentum swung emphatically against
Chelsea when Cavani was left unattended
at the far post and shouldered Napoli
ahead on the stroke of half time.
TALKING POINT
Andre Villas-Boas has asked for the public
backing of his employers, but last nights
defeat is unlikely to prompt such a declara-
tion. Can Chelsea now afford a three weeks
of managerial speculation ahead of a sec-
ond leg that will define their season?
GAME STATS
NAPOLI 3-1 CHELSEA
9 ATTEMPTS ON TARGET 6
6 ATTEMPTS OFF TARGET 6
4 CORNERS 4
50% POSSESSION 50%
1 YELLOW CARDS 2
0 RED CARDS 0
4 OFFSIDES 4
DUGOUT VIEW
We could have gone to London with
greater calm. Our qualification is still
at risk. We now need to go to Stamford
Bridge and fight to go through. This is a
squad that does not give in.
Napoli manager Walter Mazzarri
MATCH ANALYSIS
BY JAMES GOLDMAN
CHELSEA manager Andre Villas-
Boas lurched closer towards the
Stamford Bridge exit door last
night but defiantly insisted he
would still be at the helm by the
time Napoli arrive in west London
in three weeks time hoping to ter-
minate his sides remote
hopes of Champions
League glory.
The 34-year-olds
decision to omit club
stalwarts Frank
Lampard, Ashley Cole
and Michael Essien
from his starting line-
up initially looked like a
shrewd gamble when
Juan Mata stroked the visi-
tors ahead after 27 minutes.
Defensive errors, however,
allowed Edinson Cavani and
Ezequiel Lavezzi to ensure Serie A
again held sway over Premier
League opposition following on
from AC Milans destruction of
Arsenal at the San Siro last week.
Villas-Boas (inset) has now
presided over a run of five games
without a win in all competitions
and after last nights damaging
defeat the public backing he hopes
the clubs hierarchy will offer him
would appear to be anything but
imminent.
Still, the Portuguese maintains
Matas away goal could prove deci-
sive in a last 16 tie that looks
stacked firmly in Napolis favour.
Asked if he believed if he would
still be in charge for the second leg,
Villas-Boas said: For sure. A one-
goal disadvantage would have
been a bit better but it is not
impossible to recover 3-1.
We will analyse strongly what
we did wrongly because a couple of
things need to get better.
Napoli scored their third goal
in our best period and it took us a
little bit down but there is a
big possibility, with this
away goal, to turn the
tie around.
Matas opener
presented on plate
to him following
Paolo Cannavaros
dreadful miskick
was cancelled out 11
minutes later when
Lavezzi was allowed too
much space to arc a low shot
past Petr Cech from 20 yards.
The visitors were similarly negli-
gent in first half injury time when
Cavani escaped the attentions of
Branislav Ivanovic and produced
an outrageously improvised finish
with his shoulder. And when
David Luiz failed to intercept Hugo
Campagneros long pass, Cavani
was able to provide a simple pass
which allowed Lavezzi the chance
to double Napolis lead midway
through the second half.
BY JAMES GOLDMAN
FOOTBALL
NAPOLI
CHELSEA
3
1
Lavezzi struck
once in each half
for Serie A side
Napoli
Picture: GETTY
ENGLAND match-winner Kevin
Pietersen believes he has finally redis-
covered an appetite for one-day cricket
after a second century in as many
matches ensured his side completed a
comprehensive 4-0 whitewash over
Pakistan in Dubai.
Captain Alastair Cook elected to
shuffle his pack with the series
already in the bag but a bowling
attack minus the threat of James
Anderson, Graeme Swann and Stuart
Broad still managed to restrict
Pakistan to a below-par 237, with Jade
Dernbach taking 4-45 and spinner
Danny Briggs picking up two wickets
on debut.
Englands response got off to a fal-
tering start with Cook lasting just two
balls but a beautifully controlled
innings of 130 from Pietersen, his
highest in ODIs and 28th in all forms
of the game for his adopted country,
carried his side to within two runs of
victory before Tim Bresnan clubbed
the winning hit with four balls
remaining.
Pietersens ton followed on from a
similarly impressive effort on
Saturday when he reached three fig-
ures in the 50 over format for the first
time in two years, a drought he last
night attributed to burnout.
Test cricket has obviously been at
the forefront of my thought patterns
and I love that format of the game,
he said. One-day cricket is something
that you end a tour with and Ive obvi-
ously got a young child and thats
always going to be my main priority.
When youre on tour and you fin-
ish the Test matches and youve got up
to a month of one-day cricket, it does
become a bit of a hindrance. Maybe
somewhere at the back of my head its
something that Ive not given too
much thought to.
But Ive found myself out here
challenging myself big time on work-
ing hard at sorting the spin situation
out and tonight proved that Im on
my way there. Im not the finished
article and I dont think Ill ever be
able to pick Saeed Ajmal.
I think Ive got a good technique
against him when Im looking to
defend but as soon as I look to attack
its a complete lottery.
His blind spot against Ajmal aside,
Pietersens upturn in fortune mir-
rored that of his side who had sunk to
a 5-0 defeat in India last October in
their previous one-day series.
Cook, who won the man of the
series award on the back of two cen-
turies in the opening two games, will
now stay on for the upcoming
Twenty20 matches and was bursting
with pride at having masterminded
and played such a significant part in a
crushing win which lifts England up
to fourth from sixth in the interna-
tional rankings.
He said: Its been a great week-and-
a-half for us and weve played some
great cricket. Pakistan had won 14 of
their last 15 matches over here. We
had a challenge and every player in
this team has stood up to that and we
can all be very proud.
35
TALISMANIC WALES SKIPPER
READY FOR ENGLAND CLASH
WARBURTON FIT FOR SATURDAYS
SIX NATIONS SHOWDOWN: PAGE 33
Pietersens back to his best
as England seal clean sweep
Pietersen has hit 28 centuries for England in all formats of the game Picture: GETTY
Star batsman hits
consecutive tons
and is back in love
with one-day game
BY JAMES GOLDMAN
CRICKET
1.2 Overs: Dernbach makes an

immediate breakthrough
inducing a thin edge from
Hafeez
22.5 Overs: A century stand
between Shafiq and Azhar is
ended by Bresnan who clean
bowls the former
29.6 Overs: Umar Akmal lofts
a simple catch to Dernbach at
long-off and becomes Briggss
first international scalp
33.1 Overs: Azhar is caught by
a diving Morgan at point off the
bowling of Dernbach and exits
for 58 with his side 144-4
43.3 Overs: Malik attempts to
sweep Briggs but misses leav-
ing the umpire to make a
straightforward LBW decision
47.1 Overs: After Afridis dis-
missal Adnan Akmal tries to
pinch a quick single, changes his
mind and is run out by a mile
48.3 Overs: Pakistans hopes
of reaching 250 look remote
when Rehman is caught by
Trott off the bowling of Finn
49.4 Overs: Misbahs patient
knock of 46 ends when he tries
to slog Dernbach out of the
ground but reaches only Trott
standing deep on the leg-side
boundary
50 Overs: Ajmal loses his mid-
dle pole as Dernbach ends with
four wickets. England must
chase 238 to complete a 4-0
whitewash
0.2 Overs: Englands response
starts with the immediate loss
of Cook who is given out LBW
on review
16.1 Overs: With Trott and
Morgan both back in the hutch
Buttler serves up a nightmare
debut when hes out second ball
to Ajmal without scoring.
England struggling at 68-4
39.5 Overs: Kieswetter and KP
put on a century stand before
the former is run out trying to
steal a single
48.6 Overs: Having struck a
second consecutive century KP
departs with England requiring
just two more runs for victory.
New batsman Bresnan duly
obliges with a four down to
third man
FOURTH ODI PAKISTAN 237 ALL OUT | ENGLAND 241-6
Terry England KO helps
Pearce avoid dilemma
CHELSEA captain John Terry has
been ruled out of next weeks England
friendly against Holland sparing
caretaker manager Stuart Pearce
and the Football Association an awk-
ward decision.
Terry had hoped to return from
injury in last nights Champions
League clash against Napoli, but
woke with pain in his knee and will
have surgery today expected to keep
him sidelined for up to two months.
Pearce had been facing a difficult
call over whether to include Terry
(right) in his team or indeed his
squad following the furore that
followed the FAs move to strip
him of the captaincy.
Terry is awaiting trial on a
charge of racially
abusing QPR defend-
er Anton Ferdinand,
whose brother Rio
is likely to be in
the squad and
has long been the
favoured central
defensive part-
ner for the Blues
skipper.
The FAs inter-
vention, after
Terrys trial was
adjourned until July,
prompted head
coach Fabio Capello
to resign in disgust
just four months
before the start of
the European
Championship.
Under-21 boss
Pearce has been
placed in temporary charge while the
FA line up a permanent successor
widely expected to be Tottenham
manager Harry Redknapp and will
name his squad tomorrow.
Terry suffered the injury when he
collided with a post in the FA Cup
third round victory over Portsmouth
last month and missed four games
before his planned, but aborted,
comeback last night.
Terrys latest setback will raise fur-
ther doubts about the 31-year-old
stalwarts longevity, having suffered
increasingly frequent injuries in
recent seasons and a dip in
form this term.
Despite some erratic per-
formances, his absence still
represents a major blow to
Chelsea and their belea-
guered manager Andre
Villas-Boas as they
attempt to stop
their season disinte-
grating.
A two-month lay-
off would mean
Terry missing around
a dozen more games,
including top-of-the-
table clashes with
Premier League lead-
ers Manchester City,
third-placed
Tottenham and rejuve-
nated Newcastle.
If his recovery goes
according to plan, Terry
would expect to be back
for a trip to Arsenal on 21
April that could prove
decisive in the race for
fourth place, which the
Gunners currently occu-
py on goals scored.
BY FRANK DALLERES
FOOTBALL
PLAYER RATINGS | CHELSEA

PETR CECH
Made several impressive saves
early on but went walkabout for
Napolis killer third goal
BRANISLAV IVANOVIC
Guilty of ball-watching for
Cavanis goal and was hardly seen
as an attacking outlet
DAVID LUIZ
By no means his poorest per-
formance but still at fault for
Lavezzis second goal
GARY CAHILL
A real Champions League bap-
tism of fire for the January
recruit. Never looked at ease
JOSE BOSINGWA
Lasted just 12 minutes before
injury saw him replaced by
Ashley Cole
RAMIRES
One mesmeric run nearly result-
ed in a fine goal but was other-
wise far from his best
7/10
4/10
5/10
5/10
5/10
6/10
RAUL MEIRELES
Failed to close Lavezzi down for
his equaliser and coughed up
possession far too often
FLORENT MALOUDA
Selected to provide energy and
industry and delivered nothing
of the sort
JUAN MATA
Took his goal with customary
composure but his threat was
largely snuffed out
DANIEL STURRIDGE
Direct running caused problems
but a lack of end product was a
running theme
DIDIER DROGBA
Offered more than you suspect
Fernando Torres would have but
that is not saying much on form
Substitutes ASHLEY COLE: Kept Chelsea in
the tie with late clearance off the line. FRANK
LAMPARD: Easily bypassed by Napolis willing
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Euro Defeat Leaves Villas-Boas On Brink: Chelsea Lose in Naples

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Euro Defeat Leaves Villas-Boas On Brink: Chelsea Lose in Naples

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LOSSES CAN EXCEED YOUR INITIAL DEPOSIT

THE FIRST AND STILL NUMBER ONE

www.cityam.com Issue 1,575 Wednesday 22 February 2012 FREE

OSBORNE URGED TO CUT TAXES ON

HSBC overhauls bonuses

Soul singer Adele

ADELE CLEANS UP AT THE BRIT AWARDS

much higher debt trajectory, the

CUSTOM IG APPS FOR

REGENERATION and construction

profits slide 12 per cent but

ECONOMIC activity stayed above its

CUTTING the budget deficit is the

ANALYSIS l European corporate debt

Dell shares fell after hours yesterday

PAYPAL, the online payment facilita-

BNP PARIBAS Real Estate enjoyed a

LI SUN | ORIEL SECURITIES

MIKE BESSELL | INVESTEC

JAMES CARSWELL | PEEL HUNT

BNP was appointed to lease Aldgate Tower

WALES have welcomed back inspira-

1.2 Overs: Dernbach makes an

PLAYER RATINGS | CHELSEA

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