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Ireland moves evercloser to the brink asbailout fears mount

Oil price hits a fresh25-month high of $88 abarrel on China demand

Group of Twenty inSeoul clash on growth,currencies and trade

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David Cameron, Barack Obama and Angela Merkel are pushing for an agreement on currencies Pictures: REUTERS/ GETTY

IRISH ten-year bond yields shot totheir highest level since the foundingof the euro yesterday, closing at 8.6per cent, as German chancellorAngela Merkel used a speech at theG20 summit to suggest that bond-holders should be on the hook forlosses rather than taxpayers if thecountry defaults.

We cannot keep constantlyexplaining to our voters and our citi-zens why the taxpayer should bearthe cost of certain risks and not thosepeople who have earned a lot ofmoney from taking those risks, shesaid to the gathering of world leadersin Seoul.

Irelands debt is fully covered untilthe middle of next year, meaning it will not have to borrow from the bond market at the current highrates. But Merkels insistence that thenew EU bailout agreement shouldforce private investors to shouldermore of the costs has spooked themarket.

The International Monetary Fund(IMF) said yesterday that Ireland hadnot yet asked for help with its debt,but the prospect of a bailout looms ifthe republic cannot convince marketsof its credit-worthiness.

The most likely outcome now is

that Ireland will need to receive assis-tance from the EU/IMF, said GaryJenkins at Evolution, who estimated afunding requirement of around

BY JULIET SAMUEL AND KATIE HOPEWORLD ECONOMY

www.cityam.comIssue 1,262 Friday 12 November 2010 FREE

BUSINESS WITH PERSONALITY

43bn (36.4bn) over two years.Escalating fears over Ireland came

as the price of oil soared to levels notseen since 2008, with US crude top-ping $88 (55) a barrel this week.

Oil continued to hover close to itstwo-year high yesterday after rising 10per cent since the end of October.

The Organization of the Petroleum-Exporting Countries (Opec) forecaststrong demand from fast-growingemerging markets.

But rising energy costs are likely toprovide an additional headwind foradvanced economies still struggling with the ongoing fall-out from thefinancial crisis.

Global growth was high on theagenda as talks entered their secondday in Seoul but hopes for a resolu-

tion to global capital imbalances andcurrency disputes were already fad-ing.

Prime Minister David Cameron

used a speech at Peking Universitythis week to warn of a dangeroustidal wave of money crossing theworld from indebted nations to thosewith huge surpluses.

But there was little sign of aresponse. Yesterday saw the USs pro-posal for current account surplus lim-

its removed from draft documentsand a Chinese ministry of commerceofficial declare that America shouldnot force others to take medicine for

its own disease. Advanced and develop

economies have locked horns overcurrency policy at the summit, withChina critical of the Federal Reservesrecent re-launch of its quantitativeeasing (QE) programme.

The Fed has committed to buy$600bn worth of treasuries in anattempt to stimulate the sluggish USeconomy, a move that former Fedchair Alan Greenspan claimsamounts to an attempt to devalue thedollar.

The US wants the G20 resolution toinclude a clause condemning thecompetitive undervaluation of cur-rencies, in a clear reference to Chinaslongstanding policy of holding downthe yuan to boost exports.

In an open letter to G20 leaders just before the start of the summitPresident Barack Obama wrote: Justas the United States must change, sotoo must those economies that havepreviously relied on exports to offsetweaknesses in their own demand. Headded that measures were needed toreverse significant undervaluationin certain currencies.

But Americas position, coming soquick on the heels of its QEannouncement, has prompted claimsof hypocrisy from developing nations.

The currency row threatened to

overshadow other pressing issues onthe G20 agenda, such as how to tacklethe issue of sovereign default.

ALLISTER HEATH: P2

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News4 CITYA.M. 12 NOVEMBER 2010

Talks over EUBudgets failTALKS between European Union law-makers and the blocs governmentsover the size of the EUs 2011 budgetcollapsed yesterday, threatening tothrow EU f inances into disarray.

The EU budget is a highly sensitiveissue this year in many of the EUs 27member states, especially in Britain,because many governments are slash-ing spending at home and are underpressure to reject big increases in EUexpenditure.

The deadline for an agreement is15 November and negotiators havescheduled a last-ditch meeting forMonday.

Failure to agree on the budget would undermine many EU pro-grammes, such as the blocs newdiplomatic service and multi-billion

euro nuclear fusion project ITER, said budget commissioner JanuszLewandowski.

By law, unless a deal is reached,next years EU spending will be thesame as in 2010 and disbursed in 12equal instalments through the year.

Not to have a budget would be a very bad message to the Europeanpublic. We would be left ... withoutthe ability to finance ITER and theexternal action service and the soli-darity mechanism, Lewandowskisaid, referring to aid for EU countriesstruck by natural disasters.

BYHARRY BANKS

EU ECONOMY

SMARTPHONES IN HACKING RISKCertain smartphone models runningGoogles Android operating systemhave security flaws that could allowhackers to steal personal informationor record conversations, researcherssaid this week. In a demonstration atthe Black Hat security conference inAbu Dhabi, a UK researcher showedhow a vulnerability in the web brows-er on an HTC Android phone allowedhim to install an application thatgave him broad control over thephone.

MICROSOFT LINKS WITH SINA ONMESSAGINGMicrosoft has joined forces with Sina,Chinas largest online news portaland microblogging site, in a deal thatcould help the US groups instantmessaging service grow into a size-

able player in the countrys internetindustry. MSN China, a joint venture

that runs the service in the country,and Sina on Thursday started to link

their instant messaging tools andblogging sites.

OIL FIRE LINKED TO ROLLS-ROYCE JETINCIDENT An oil fire could have caused theRolls-Royce engine of a Qantas A380superjumbo to break apart after take-off last week, European regulatorshave revealed, in the first officialcomment on possible causes of thefamous aircrafts worst safety scare.

CHINESE BUYING DRIVES COPPER TORECORDChinese buying has driven the priceof copper to a record high of nearly$9,000 a tonne and traders warnedthat prices could rise a further 25 percent next year to more than $11,000as demand continues to outpace sup-ply. The red metal is a crucial cog inthe global economy as its use in elec-

tronics and construction means it isfound in almost every appliance.

WAL-MART OFFERS FREE SHIPPINGFOR CHRISTMAS As the Christmas holiday shopping wars heat up, Wal-Mart has dealtwhat it hopes will be a killer blow toits rivals by offering free shipping foronline orders on 60,000 products, with no minimum purchaserequired. The move will increase pres-sure on other online retailers to fol-low suit, as customers becomeconditioned to ever more favourableterms for purchases.

UK SHARES ARE FALLING OFF THERADAR OF BIG INVESTORS The typical British defined-benefitpension fund now has just one sixthof its assets invested in home-grownshares. The annual Purple Booksnapshot of the industry from ThePensions Regulator, published yester-

day, showed sharp reductions ininvestment in British equities.

CARE HOME FEES UP BY 20PC IN FOURYEARSMore than 20,000 pensioners wereforced to sell their homes to pay forcare last year, according to new gov-ernment figures. But far more fami-lies could find themselves facingspiralling care fees, since most localcouncils interviewed by the BBC saidthey had considered reducing theirspending on care for the elderly. They blamed severe budget cuts and anageing population.

TOO BIG TO FAIL BANK RULES TO BEUNVEILED AT G20 The worlds largest banks will learnmore details of the plans by interna-tional regulators to ensure thatfinancial institutions consideredtoo big to fail become less of a riskto the global banking system, in par-

ticular banks that are systemicallyimportant.

APPLE'S IAD HELPING RIVALS Apples iAd interactive mobile adservice is having an unintendedimpact on rivals: Its largely helpingtheir businesses by generating broad-er advertiser interest in mobilephones and gadgets. When Applelaunched iAd last July, some industryexecutives worried that they wouldlose mobile advertising business tothe Cupertino, California company.

NISSAN RECALLS MORE THAN 600,000VEHICLESNissan Motor is recalling more than600,000 vehicles in North and SouthAmerica and Africa due to steering orbattery cable problems. The Japaneseauto maker said yesterday that thesteering recall affects 303,000Frontier pickup trucks and 283,000Xterra sport utility vehicles in the US,

Canada, Mexico, Argentina, Braziland other Latin American countries.

WHAT THE OTHER PAPERS SAY THIS MORNING

We must adjust to new global order

IT takes time for new realities to sinkin, especially in economics andgeopolitics. One reason why the G20meeting in Seoul wont achieve any-thing of any real substance is that theold order still believes that it can playby the old rules and by that I meanprimarily the Americans. The Fedsdecision to engage in a fresh round ofquantitative easing last week, eventhough its economy grew by an annu-alised two per cent in the third quar-ter, was the last straw for theemerging nations. They are convincedthat this is a deliberate ploy to weaken

the greenback, inflate away the USnational debt (much of which is heldoverseas) and boost US exports at theexpense of other countries.

There was a time when the rest of

the world would merely have lumpedit and accepted its fate. No longer. Weare now truly in a multi-polar worldyet one devoid of a proper roadmap. The US remains the worlds mostimportant superpower but can nolonger impose its will either militarilyor economically; China is hugely pow-erful, is starting to throw its weightabout but remains a developing coun-try; the same is true, to a lesserdegree, of India and Brazil. Europe isin steady relative decline; it remainswealthy and stable but has lost its abil-ity to translate its large GDP into truepower and influence. Japan is also indecline, its economy eroded by an age-ing population.

Any of these countries or regionscan now derail the global economy;America last managed in 2008; thereis at least an outside chance that

Europe could do the same if its sover-eign debt crisis spirals out of controland triggers another financial night-mare. A recession in China would be adisaster for the whole world. Three fac-

tors make this situation even moreunstable.The first is that all of the new eco-

nomic superpowers are flawed, atleast in part; all are giants with feet ofclay. China is a dictatorship, attempt-ing to construct a new civilisationbased on state capitalism; its currencyis deliberately under-valued, its con-sumers dont spend enough, its cen-tral bank is hoarding too many assetsand its government desperatelyattempting to prevent a new bubble.India remains bureaucratic. Brazil hasyet to emerge from its regional sphereof influence. The Western economiessuffer from excessive national debts,failing welfare states and bankruptstate pension systems; the emergingeconomies lack a truly trustworthyrule of law and their democracies, inmost cases, remain fragile.

The second problem is that there isno proper mechanism for these pow-ers to communicate. The G20 is toounwieldy; the UN is flawed; all theexisting global institutions from the

IMF to the WTO are relics of a previ-ous era. The third, related problem, isthat the world continues to use thedollar as its main reserve currencyand unit of account, even though it isa paper money that is primarily used by the US to serve its own interests.This relic of the post-Bretton Woodsera is no longer sustainable.

Remember when clever-silly pun-dits used to believe that the euro wasabout to dethrone the greenback asthe worlds currency? Today, with theEurozone on the verge of break-up,this is self-evidently nonsense. A muchmore sensible prediction is beingmade by HSBCs currency team, which believes that the renminbi could become the dollars main rival. Weshall see; but dont expect any realanswers from the G20 today.

[email protected]

A UBS banker has allegedly lost thebank more than $10m (6.2m) in fees,after he sent an email detailingGeneral Motors (GM) upcoming floatto over a 100 of the firms clients.

The alleged leak was disclosed inpapers filed by GM with the US regu-lator the Securities and ExchangeCommission (SEC).

GMs filing warned that the email,which contravened SEC rules govern-

ing IPOs, meant that investors whobought GM stock could seek refundsor damages because of the leak if UBShad remained an underwriter on thedeal.

We had no knowledge of the e-mail until after it was sent, and the e-mail does not reflect our views, GMsaid in the filing.

UBS, which is led by chief executiveOswald Grbel, would have earnedan estimated $10m in fees in the$13bn share sale. UBS declined tocomment yesterday.

BYKATIE HOPE

BANKING

Email loses UBS $10mUBS boss Oswald Grubel saw the group lose millions over missent emails

NEWS | IN BRIEF

Disney misses forecastsWalt Disney posted a rare quarterlyearnings miss after TV broadcasting andtheme park revenue fell, offsetting aboost from smash "Toy Story 3" androbust advertising sales. Disney's fourth-quarter net income fell to $835m, com-pared with $895m a year earlier. Total

sales fell one per cent to $9.7bn from$9.9bn. Analysts on average had fore-cast sales of $9.95bn. Wall Street hadexpected better numbers from a compa-ny that has exceeded earnings expecta-tions in each of the past six quarters,hoping that an improving economyboosted advertising, parks, consumerproducts and its other businesses.

Trinity Mirror sales slide 5pcTrinity Mirror said in a trading statementits like-for-like sales fell five per cent inthe four months to the end of Octoberand the national and regional newspaperpublisher said the environment wouldremain tough into 2011. Excluding rev-enue from GMG Regional Media, whichTrinity Mirror bought this year, advertis-ing revenue fell 4.6 per cent and circula-tion revenue fell 6.7 per cent. The stockclosed 1.9 per cent down at 106p.

EDITORS LETTER

ALLISTER HEATH

7th Floor, Centurion House,24 Monument Street, London, EC3R 8AJTel: 020 7015 1200 Fax: 020 7283 5334Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor Ben GriffithsNight Editor Katie HopeAssociate Editor David CrowBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelPictures Alex Ridley

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Editorial StatementThis newspaper adheres to the system of

self-regulation overseen by the Press ComplaintsCommission. The PCC takes complaints about theeditorial content of publications under the EditorsCode of Practice, a copy of which can be found atwww.pcc.org.uk

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Budget commissionerJanusz Lewandowskisaid not agreeing abudget would be avery bad message.

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R E U T E R S

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BG GROUP has signed a $3.5bn (2.bn)contract to build eight giant floatingdrilling platforms to help pump oilfrom a string of discoveries off thecoast of Brazil.

BG and Petrobras, Brazils state oilcompany, said the joint order for thenew vessels had been placed with pri-

vate Brazilian company EngevixEngenharia.

BG will pay $911m of the total, with the balance coming fromPetrobras, Repsol of Spain andPortugals Galp, joint venture part-ners in Brazils Santos Basin oil proj-ect.

The floating production unitsknown as FPSOs will have the capaci-ty to process up to 150,000 barrels perday of oil and 6m cubic meters of gasper day and are expected to be inoperation by 2017, Petrobras said in astatement.

Construction of the hulls will startin March at a shipyard in the south-ern state of Rio Grande do Sul with 70per cent of their content sourced inBrazil. The first two should be deliv-ered in 2013 and the rest completed

by 2015. Of the eight units, six will beused in the Santos Basin blocs wherethe Tupi and Iracema fields are locat-ed and which are operated byPetrobras, BG Group and GALP. Theother two will be used in a bloc con-taining the Guara and Carioca fields.

BG Group in a$3.5bn Brazildrilling deal

HOPES of an agreement betweenBritish Airways (BA) and its cabincrew faltered yesterday after theUnite union suspended a ballot on adeal offer from the airline.

Last month, Unite said it would bal-lot staff on a new deal from BA whichseemed to address the main area ofconflict, the removal of travel conces-sions for workers who had gone out

on strike in the past year.The dispute which began last year

has so far cost BA 150m and has seena number of walkouts led by Unitewhich represents around 90 per centof the airlines 12,000 cabin crew.

Unite had previously said it wouldrecommend its members vote to sup-port the deal, but it said its cabincrew representatives had nowchanged their mind.

It has been made clear on manyoccasions that Unite and I personally

will not under any circumstances rec-

ommend to our cabin crew membersany offer that was not also recom-

mended by our elected representa-tives, Tony Woodley, the Unites jointgeneral secretary said.

Under these circumstances, I havesuspended the ballot on the offer and

will meet with all of our cabin crewrepresentatives as a matter ofurgency to consider the next steps.

BA said it believed the deal was fairand could resolve the dispute whichstarted after it announced it was cut-ting crew pay and reducing staff.

BA cabin crew deal in doubtafter union changes its mind

BRITONS net wealth climbed back to2005 levels last year, largely becauseof a mini revival in the housing mar-ket, according to official statisticsreleased yesterday.

Household net wealth rose 7.3 percent to 117,000 per person in 2009 the same as in 2005 but still belowa peak of 128,000 in 2007. This is asa result of the drop in house pricesduring the recession, the Office forNational Statistics (ONS) said yester-

day.Most families biggest asset is their

home, followed by life assurance,pension funds and savings accounts,the ONS added.

The official data highlighted thescale of the recession however, show-ing that GAP per head a measure ofthe economic wealth of a countryplunged by 5.5 per cent in 2008-09,the biggest margin in 60 years.

Despite the economic strain,Britons disposable incomes contin-ued to climb, increasing by 1.2 percent between 2008 and 2009 as con-sumers benefited from lower mort-

gage rates and rises in benefitpayments.

Net wealth back to 2005levels as housing recovers

BYHARRY BANKS

ENERGY

UK ECONOMY

BYMATTHEWWEST

TRANSPORT

News 5CITYA.M. 12 NOVEMBER 2010

PEPPA PIG TO DEBUT IN THE US

ENTERTAINMENT ONE said it had signed a three-year broadcast deal to screen its hitpre-school TV show Peppa Pig in the US on Nickelodeons Nick Jr channel. The series isbroadcast in more than 180 countries and made more than 100m in merchandising inthe UK alone last year. Analysts said in the US merchandising could range between

1.5bn and 2bn if the show is a hit. Details of the broadcast deal were not disclosed.

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ANALYSIS l BG Groupp

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BT LAST night raised its full-year fore-casts after bumper broadband sales

boosted its profits.During the second quarter over

250,000 new broadband customerswere added to its network, includingrival firms renting BT lines.

Virgin added 35,000 new broad-band customers during the same peri-od.

BTs new superfast broadband serv-ice Infinity is rising at a level of

around 4,000 a week after failing tomake a splash since its launch in

January. It now has around 38,000users.

The telecoms giant raised its full- year earnings guidance from 5.6bnto 5.8bn after pre tax profits rose 43per cent to 781m. Adjusted pre taxprofits were up 13 per cent at 496m.

However, BT failed to arrest itsdeclining revenues, with sales in theperiod falling three per cent to4.98bn.

It disappointed investors by raisingits dividend by a relatively modestfour per cent, below most analystexpectations.

Chief executive Ian Livingston was bullish yesterday, claiming the firmhas created a strong base for futuregrowth.

He even had a pop at rival Virginover its ad campaign, which featuresa Ferrari representing its superfastconnection speeds. Livingston said:Virgins product is a bit like aFerrari its very expensive and notmany people buy it.

Profits at BTgiven a boostby broadband BT YESTERDAY announced its SkySports offering has limped to just50,000 subscribers since its launchthis summer.

Chief executive Ian Livingstonadmitted the firm has a lot more todo but reiterated BTs long termcommittment to the project.

He said: Around 10 per cent of ourBT Vision subscriber base is now tak-ing our Sky Sports package. We thinkit is important to offer our customersa broad range of options. I have been

very, very clear to the market allalong that this is a multi-year thing.

Overall the firm added 24,000 BT Vision customers, taking its totalnumber of subscribers to 520,000.

This compares to 10m subscribers atrival Sky.

BT also said it will bring 3D and

faster HD content to its users in timefor Christmas and showcased its newuser interface, which will provideaccess to the BBC-backed YouView on-demand TV service.

Just 50,000sign up to BTssports package

BY STEVE DINNEEN

TELECOMS

MEDIA

Focus on BT6 CITYA.M. 12 NOVEMBER 2010

ANALYST VIEWS: JUST HOW GOOD ARE BTSLATEST RESULTS? Interviews by Steve Dinneen

WILL DRAPER | EXECUTION NOBLE

Although this is a brighter set of results from BT, with figures ahead onmost measures and full-year guidance raised, much of the increased guidance hadbeen anticipated. The interim dividend of 2.4p was the one area of disappoint-ment, four per cent lower than our estimate.

SIMON WEEDEN | CITI

BT is comfortably meeting its pension and dividend commitments whilereducing debt at an accelerating rate. With the pension scheme also improving thecompany is probably waiting for a positive response from the credit ratingagencies to its progress before stepping up its payout.

CARL MURDOCK-SMITH | JP MORGAN

Openreach was the key outperformer. Equity free cashflow was also strong at 535m, 11 per cent above consensus. Its dividend, up fourper cent to 2.4p, may look light but we would look for more at the full-year stage.Revenues were one per cent above consensus.

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ANALYSIS l BT

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BT chief executive IanLivingston says BT iscommitted to its SkySports offering despiteslow initial uptake

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BRITAINS welfare system is to under-go the most dramatic shake-up sinceits inception in 1942, after the govern-ment unveiled plans to crack downon the workshy and make sure thateveryone is always better off in a job.

The plans are designed to simplifythe complex web of benefits to reduceerrors, fraud and inefficiencies, andto ensure that people in work are bet-ter off by letting them keep more oftheir earnings.

It will see separate benefits such ashousing benefit, income support orincapacity replaced by a universalcredit system whereby individualhouseholds will get a single welfarepayment.

The government says the currentsystem often deters unemployed peo-ple from going back to work, as theycould find themselves worse off afterlosing many of their state benefits.

Work and pensions secretary IainDuncan Smith said it was estimated

the measures, which will be intro-duced from 2012-3 and brought inover the following five years, wouldmean 700,000 low-earning workerswould be better off.

Some 2.5m households would gethigher entitlements through the uni- versal credit and 350,000 childrenand 500,000 adults would be liftedout of poverty, he said.

The system will also come withtougher sanctions.

Anyone on benefit who turns downa job, fails to apply for work whenasked to do so or does not complete a

four-week community work scheme will initially lose their 65-a-weekbenefit for three months.

A second offence will result in sixmonths exclusion and a third willsee that increase to three years.

Almost 1.5m people have been outof work and on benefits for nine ofthe last 10 years, Duncan Smith said.

He said the 70 per cent net rise inemployment under the previousLabour government was accountedfor by immigrant workers.

Duncan Smithunveils shakeup of welfareBYDAVID CROW

POLITICS


NEWS | IN BRIEF

Alan Johnson in mea culpaAlan Johnson, the shadow chancellor,yesterday begun the long march toregaining the Labour partys economiccredibility as he admitted the previousgovernment had made several mistakes.He rejected claims of profligacy butsaid Labour had become too reliant on

tax receipts from the City, and had failedto recognise they would vanish in theevent of a financial crisis. Before thecrisis hit, the City paid around 25 percent of overall corporation tax in thiscountry 10bn in 2007. A boomingsector with high remuneration and prof-its was paying a lot of tax but thisreliance on the financial sector made ourtax base less resilient when the globalfinancial crisis hit, he said.

Cisco dives on weak outlookTechnology bellwether Cisco Systemsplunged 16.2 per cent to $20.52 in fren-zied trading yesterday, a day after agloomy revenue outlook left investors

jittery, and some brokerages downgrad-ed the stock. More than $23.5bn waseroded from the companys market capwith about 200m shares changinghands in 30 minutes of trading, fourtimes their 50-day moving average vol-

ume. Shares of rivals Juniper Networks,F5 Networks, Riverbed Technology andJabil Circuit also sank. Cisco alsodragged down the broader market. Atleast three brokerages lowered their rat-ings and six others cut their price tar-gets on the shares of the company,which said weak spending by its publicsector customers and soft orders fromits cable segment hurt its results. Thedisappointing forecast comes a quarterafter Cisco warned of an uncertaineconomy.

Its an absolute shame that instead of talkingabout tuition fees, were all talking about the

violence yesterday. I think everybodys angryand we will see a lot more from all thosewho have lost out in the cuts.

CITY VIEWS: WILL WE SEE MORE VIOLENCE AT PROTESTSAGAINST THE CUTS? Interviews by Thomas Hamed and Marion Dakers

GARY FRICKER | ELECTRICAL CONTRACTORSINSURANCE

I was shocked by the violence onWednesday. The next couple of months willprobably be full of protests, but the policewill be a lot more prepared theyknow there is a group of people whowill get involved just to cause trou-ble.

ODETTE MEDDEMMEN | RAB INTERNATIONAL

The protestors need to make sure their cam-paigns are peaceful, otherwise the message getslost. If the government backs down, how-ever, more people will start to thinksmashing things up works.

JON MOORE | MBA IT

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church St Dunstans in-the-West, where speakers included Colonel

Stuart Tootal formerly of the 3 Pararegiment and now working atBarclays and music came from thelikes of Chantage, a chamber choirfrom the City. Local businesses alsogot behind the event, including FleetStreet bar El Vino, which donated apercentage of its profits to the chari-ties.

CASH IN THE ATTICFinancial memorabilia buffs had bet-ter book their ticket to New York,pronto, since thousands of goodiesfrom US Ponzi-schemer Bernard

Madoffs various properties are due togo on the block tomorrow at theSheraton hotel.

As with the first auction a year ago, which raised $1m for Madoffs vic-tims as a drop in the ocean towardsthe $65bn he stole, the items up forsale this time range from the glitzy tothe mundane.

They include a 10.5 carat diamondengagement ring and a Steinway &Sons grand piano, to the floral canopy bed in one of Madoff and his wife

Ruths master bedrooms, to clothesand humdrum everyday parapherna-lia such as cooking implements, tow-els, boxer shorts (no word on whethertheyve been washed first), and arather fetching pair of black velvetmonogrammed carpet slippers. Forman orderly queue, now...

TALKS NOT CHEAPTo the analyst presentation forBTs interim results yesterday, where management was inebullient form after revealing a43 per cent hike in first halfprofit.

Taking the opportunityto plough the deep pocketsof the City analysts pres-ent, chief executive IanLivingston informed themthat they were each allocat-

ed just one question, and anyfurther questions would be

charged at 10 a pop, with proceedsdonated to Children in Need.

Stepping up briskly to the chal-lenge, the gathered analysts came uptrumps, raising 470 with thelargest contribution coming fromMorgan Stanleys Nick Delfas, whokicked off proceedings with a four-question grilling.

Livingston himself then matchedtheir contribution and rounded it upto 1,000. Sterling work on all sides.

DIGITAL AGEPing! In zooms a letter from the gov-ernments digital champion MarthaLane Fox, calling on the Citys com-puter connoisseurs aged 55+ to enterthe search for an Age UK InternetChampion of the Year.

Apparently, the number of over-65-year-olds using the Web has gone upfrom 18 per cent four years ago to 40per cent now, as golden oldies getused to the vast opportunities theinternet can bring. But Lane Foxwants to improve it even more andthe aim is for next years Champion tohelp others who lack the confidenceor skills to get online. Visit the Age UKwebsite to find out more.

UNSUNG HERORegular readers may recall the nameof John Major no, not the formerPrime Minister, but the securityconcierge at PwC who last year wonCity A.M.s competition to discover theUnsung Hero of the City.

Major, whos guided over a millionstaff and guests through the firmsdoors over his 21-year stint at thefirm, this week celebrated his retire-ment from PwC at Smollenskys onthe Strand, where he was presented

with a leaving book of farewell mes-sages from staff and a bottle of DeBortoli Old Boys 21-year-old port, forevery year he spent with the firm.

FOND FAREWELLFinally, it is with sadness that I saygoodbye to you all today on my last

day at City A.M.Over the course of the

past few years I have hadthe pleasure of meetingsome of the wittiest, bright-

est and kindest peo-ple in the City, andI would like to takethis opportunity to

thank all of my read-ers for your support,

feedback and ideas.Im sure you will all be

there to assist my succes-

sor in continuing the col-umns success.

CITY PAYS ITS DEEPEST RESPECTSTO BRITAINS FALLEN WAR HEROESSILENCE blanketed the City of London yesterday at 11am, to mark theanniversary of Armistice Day, the endof the First World War.

The largest remembrance ceremo-ny took place at Lloyds of London,where 5,000 members of the insur-ance market gathered on the tradingfloor to watch on as their chairmanLord Levene and Lord Mayor NickAnstee laid wreaths to commemorate

those who served in the Great Warand later conflicts.

Its a fitting time to reflect on thebravery of others given our soldierscurrently engaged in conflict,Levene said. Its important toremember not only all the men andwomen who are serving their coun-try today, but also those who gavetheir lives and contributed so valiant-ly in previous wars.

Lloyds has led the way in fundrais-ing for the Poppy Appeal this year,raising a record 240,000, thoughother City workers have been just asbusy doing their bit for the cause.

Last night saw a number of partiesheld across the financial district tomark the occasion, including solici-tor Hannah Sisk, whos soon to joinlaw firm Rollingsons. Sisk organiseda remembrance evening at Guild City

5,000 attended the Lloyds of London remembrance ceremony Pictures: GETTY, REUTERS

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The Capitalist10 CITYA.M. 12 NOVEMBER 2010

EDITED BY

VICTORIA BATESGOT A STORY? [email protected]

Care to get your hands on Bernies smalls?

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CONTROVERSIAL new rules to regu-late the hedge funds, private equityhouses and other alternative funds

were overwhelmingly backed by theEuropean Parliament yesterday.

After months of wrangling, whichsaw hedge fund-friendly states likethe UK extract major concessions,the parliament backed the rules by513 votes to 92 with 3 abstensions.

London hedge fund managers were yesterday toasting what onedescribed as a qualified victory,after a massive industry lobbyingeffort saw some of the most dracon-ian elements of the directivescrapped.

A hard cap on leverage limits anda three-year delay before offshorefunds could market their productsin Europe which were described byone industry source as businesskillers were omitted from thefinal draft.

However, managers of all alterna-tive investment funds, which alsoinclude real estate funds and invest-ment trusts, must register to operate

in the EU, report data to supervisorsand meet capital requirements.

Under centralised EU supervision,there will also be tougher rules onhow a clients assets are safeguardedat depositories.

The EU assembly beefed up thelaw by including pay rules and curbson asset stripping on the privateequity sector in a bid to stop them

buying assets just for the short term.The European Private Equity and

Venture Capital Association (EVCA)said the rules were not costed andcould have a serious impact on thefinancing of small firms and innova-tive companies.

The new law affects hedge fundswith over 85m under managementand private equity groups investingover 425m.

The new rules take effect in 2013,with a passport or EU marketingrights for non-EU funds not availableuntil 2015. Until then national mar-keting regimes will continue butcould be phased out in 2018.

Some 80 per cent of the EUshedge fund sector is located inLondon which is also Europes mainprivate equity centre.

EU parliament

votes for newhedgie rules

BONN-based retail lender DeutschePostbank unveiled a dramatic recoveryin its third-quarter results yesterday,

with pre-tax profit moving from a29m (24.5m) loss to a71m gain. Thebank is 41 per cent owned by DeutscheBank.

Nine-month earnings per sharewere up 25 per cent to 1 and the bank

posted an improved tier one capitalratio of eight per cent versus 7.3 percent at the half-year mark. The bankput this down to the disposal of risk-

weighted assets and a currency effect.Like most European retail banks,

Deutsche Postbank is gradually wear-ing down its loan loss provisions: theydropped from 142m last year to134m in the third quarter of this year,despite having risen in the secondquarter to 175m.

Deutsche Postbankmoves into profit

ANGLO--AUSTRALIAN miner BHPBillitons boss is likely to face calls on

Tuesday for a massive share buyback when he confronts shareholders inAustralia after his third straight fail-ure to pull off a major acquisition.

Chief executive Marius Klopperslatest deal, a $39bn bid for PotashCorp, appears headed for the scrapheap, after Canada all but vetoed it,leaving investors focused on the com-panys $12.5bn warchest of cash and

what to do with it. Kloppers has until3 December to try and change

Ottawas mind -- but investors havealready written off any hope of a deal.

BHP under heatto return cash

BYDAVID CROW

HEDGE FUNDS

MINING

LONDON mayorBoris Johnson yes-terday unveiled a

3D full-scale modelof the updated

Routemaster busdue to hit thestreets in 2012.

The fuel-efficientbus will be quieterthan its diesel-run

predecessor andhave a platformoffering passengersthe traditional hop-on hop-off service.The buses mergenostalgia and thelatest technology,said Johnson.

BY JULIET SAMUELBANKING


NEWS | IN BRIEFSiemens bullish on the futureIndustrial giant Siemens has said its netloss was 65 per cent lower in the finalquarter of 2010 than the same period ayear earlier. For the full-year, net incomeclimbed 63 per cent to 4bn (3.5bn).The fourth-quarter net loss was 396m,compared with a loss of1.06bn in thelast part of 2009. But it said its growthwas gaining momentum and that itexpected to win new orders at a fasterpace next year.

New US trading rules eyedThe US Commodity Futures TradingCommission expects to unveil a series ofdraft rules within a month, includingreal-time reporting of swaps tradesnext week and possibly the long-awaitedcommodities market position limits on 1

December its chairman said yesterdayahead of its 19 November meeting.

ALL ABOARD: BORIS UNVEILS NEW ROUTEMASTER

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LAND Securities, the countrys largestlisted property firm, posted a 6.7 percent rise in the value of its net assetsyesterday and pledged to accelerate itsdevelopment work in the City.

Land Securities portfolio gained3.4 per cent in value to 9.7bn in thesix months to the end of September,and the firm committed to startdevelopments worth more than 1bn.

Rental values in the firms exten-sive London portfolio rose 1.1 percent, in the first positive move since2008. This rise contributed to anunderlying pre-tax profit of 135.9mfor the period, a rise of 5.8 per cent onlast year.

Chief executive Frances Salway toldCity A.M. that as well as filing plan-ning permission to redevelop 60Ludgate Hill and 110 Cannon Street,the company is in the final stages ofsecuring an unnamed second office

tenant at One New Change, where10,000 shoppers a week are now visit-ing.

Salway said that an influx of for-eign investors in the City market hadhampered Land Securities efforts tobuy new sites, but that buoyant mar-ket conditions had also worked to itsadvantage.

The company made sales worth213m in the last six months, repre-senting an overall 8.8 per cent gain onMarch 2010 valuations.

Land Securities ramps upCity development plansBYMARION DAKERSPROPERTY


Chief executive Frances Salway (inset) and Land Securities development One New Change

Picture:MichaTheiner/CityA.M.

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Consumer News 13CITYA.M. 12 NOVEMBER 2010

STRUGGLING sportswear retailerJJB yesterday warned that full-yearresults would not meet its hopesafter poor recent trading, increas-ing the chances of the companyhaving to raise additional cash.

Shares in JJB, which came closeto administration last year, lost upto 29 per cent of their value afterthe retailer said sales over the lastsix weeks had failed to match itsexpectations, blaming the weaken-ing trading environment.

The company has slashed theprice of some goods in an attemptto fuel sales but the drive has failedto pay off.

It said sales at stores open more

than a year increased 13.1 per centin the six weeks to 7 November --lower than JJB had anticipated andheavily influenced by promotionalinitiatives, which also reduced itsgross margin to 33.8 per cent from42.2 per cent in the first half.

The board believes that currenttrading conditions are having, and

will continue to have, a negativeimpact on its expectations for thefull-year, said JJB.

The full-year outcome remainsheavily dependent on our perform-ance during the important pre-Christmas and New Year saleperiods.

Katharine Wynne, an analyst atInvestec Securities, said that it wasominous that JJBs efforts to kick-start sales had failed given the

tough consumer environment. JJB is forecast to make full-year

losses of around 40m, accordingto City analysts. The retailer has249 stores in the UK and Ireland.Singer Capital Markets analystMatthew McEachran said: Thefocus in the short term has to be oncash generation.

JJB issues warningas promotions failBY JOHN DUNNE

RETAIL

WH Smith yesterday gave anupbeat view for the rest of the yeardespite reporting a drop in sales.Group sales fell two per cent in theten weeks to 6 November.

The firm said sales at stores openover a year were down one per centat its travel division and down fourper cent in its high street business.

The company said: We remain aresilient business and are well posi-tioned for continued growth in the

future.Chief executive Kate Swanns

strategy is based on cutting costsand improving gross margins byfocusing on more profitable prod-ucts, better sourcing and bettercontrol of markdowns, rather thandriving top-line sales.

She has rebalanced WH Smithsmix of products towards core cate-gories and away from entertain-ment products -- CDs, DVDs,computer games and consoles.

Last month the retailer beatforecasts with a nine per cent risein 2009-10 profit, lifted its final div-

idend by 18 per cent and said itwould return up to another 50m

to shareholders through a buybackprogramme.

Shares in the company haverisen ten per cent in the last threemonths.

The company has 570 high streetstores and a 500-outlet travel divi-sion with units at airports, trainstations, hospitals, motorway serv-ice stations.

Numis Securities analystAndrew Wade said WH Smith con-tinued to do the right things,although he warned the outlook

for next year remained tough in anuncertain consumer environment.

WH Smith bullish on outlook for thefull-year despite a decline in salesRETAIL

NEWS | IN BRIEF

Dairy Crest secures Tesco dealDairy Crest yesterday reported a fiveper cent increase in first-half underlyingpre-tax profit as sales of its key brandsgrew and it increased sales of fresh milkto major retailers. The company madean underlying pre-tax profit of 40.1min the half year to the end of September,

up from 38.1m the year before.Meanwhile Dairy Crest has secured acontract to supply Tesco with 50m litresof milk about five per cent of thesupermarket giants sales. It said higherprofits in cheese up 58 per cent to12.5m more than offset a lowerperformance in its dairies, which arebattling against a highly competitivemilk market.

Waitrose sees sales riseWaitrose sales rose by nine per cent inthe third quarter as the mild weatherfuelled sales of unseasonal productsincluding salad and ice cream. Theretailer which does not issue quarterlyprofit figures said sales for the threemonths to the end of Octoberhad been buoyant. On a like-for-likebasis its total branch sales (excludingpetrol) were up by 4.4 per cent, withgrowth accelerating last month, the

company said. Over the last week icecream sales were up by 16.8 per cent.Waitroses share of the UK grocery mar-ket increased by 0.2 per cent comparedto a year ago, according to Kantar.New Look said its prices will be hiked up to eight per cent higher

BUDGET retailer New Look yesterdaywarned that its prices would be hikedby up to eight per cent as the cost ofcotton continued to surge.

The company, which provides cut-price fashions to young shoppers, sawUK sales drop 4.5 per cent in the 26

weeks to 25 September.Chief executive Carl McPhail said

price rises were inevitable, but saidthat the sales fall came against verystrong comparative figures for the year

before.New Look, which is owned by pri-

vate equity firm Permira and Apax

Partners, postponed a float plannedfor February after volatile markets sawit pull back.

McPhail said: We are not ruling outa float in the future but we do not

have to do it. We have a very strongcash position.

He also said Britains second-biggestwomenswear retailer by value of saleswas gaining market share and its inter-net business was closing the gap ononline specialist ASOS.

Meanwhile international sales,which account for about 23 per cent ofthe total, climbed 2.4 per cent on alike-for-like basis.

New Look, which runs over 1,000stores in Britain and abroad, said inFebruary it had hoped to raise 650min its planned flotation, to reduce its1bn of borrowings.

But investors were wary of the plan,particularly after department store

chain Debenhams returned to thestock market in 2007 laden with debtand saw its shares plunge. Primark ear-lier this week said that the soaringprice of cotton was hitting its margins.

New Look to raiseprices as the cost

of cotton rocketsBY JOHN DUNNE

RETAIL

14

12

10

8


ANALYSIS l JJBp 8.00

11 Nov

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PRIVATE equity firm 3i Group said amanufacturing recovery, driven bydemand from Asia and SouthAmerica, pushed earnings higher atits portfolio companies as it reportedhalf-year earnings yesterday.

The group said aggregate earningsacross its buyouts portfolio grew byeight per cent between March andSeptember, while its growth capitalportfolio saw a seven per cent rise.Both were driven by a recovery in theindustrials sector.

The value of its portfolio increasedto 330p a share from 321p at the endof March.

We have some great manufactur-ing and industrial businesses thathave seen significant turnovergrowth 30, 40, 50 per cent in a year based on growing demand fromIndia, China and South America,said 3is chief executive MichaelQueen.

As other private equity firms havedone, 3i has spent much of the lasttwo years protecting its companiesfrom the downturn. It said it was nowmaking good progress in increasinginvestment.

3i, which recently reshaped its dealteams to hunt for deals by region,increased investments in the firsthalf to 327m from 190m a year ago.

The group added French health-care provider Vedici and calibrationand measurement testing groupTrescal.

Queen said the pipeline of poten-tial new acquisitions has improvedprogressively and hopes 3i will spendmore on deals than it reaps fromcompany sales in the second half. Itrecently agreed to sell Germanengine maker MWM to Caterpillar.

We are converting that pipelineinto completed transactions andthats what I hope youll see furtherover the next six months, Queensaid.

INDUSTRIAL and Commercial Bankof China (ICBC) yesterday revealedplans to raise 45bn yuan (4.2bn)through a rights issue this month toreplenish capital.

ICBC, which first unveiled the planin July, is the last among Chinas BigFour state banks to raise funds tostrengthen balance sheets weakened

by last years lending binge aimed ataiding Chinas economic recovery.

China Construction Bank Ltd (CCB)and Bank of China, the countrys sec-ond- and fourth-largest lenders, havedetailed plans to raise a combined$18.2bn (11.3bn) through rightsissues this month, while AgriculturalBank of China, the third largestlender, raised $22.1bn in a record ini-tial public of fering in July.

ICBC said it would sell 0.45 sharesfor every 10 existing shares, at steepdiscounts to its market prices.

The Beijing-based lender, whichwill start taking subscriptions from

investors on 16 November, priced theissue at 2.99 yuan per share inShanghai, 37 per cent lower than itslast closing price of 4.74 yuan.

Its Hong Kong shares will be sold atHK$3.49 (28p) each, at a 47 per centdiscount to its market price ofHK$6.63.

ICBCs state parent, Central Huijin,a unit of Chinas sovereign wealthfund, has said it will fully participatein the rights issue. Bank of China said

yesterday its $9bn rights issue was99.57 per cent subscribed.

ICBC looks to strengthen balance sheetthrough 4bn discounted rights issue

MOBILE phone operator O2 plans toincrease its investment in its networkto support demand from a growingnumber of smartphones, it said in itsquarterly results yesterday.

The UKs second-biggest phonefirm, owned by Spains Telefonica,posted revenue for the nine monthsto September of5.3bn (4.5bn), up5.6 per cent on last year.

Its parent company enjoyed a 65.6per cent rise in net profit to 8.835bn

for the same period. Accountingadjustments, as well as growth in theUK, Germany and Latin America,were the main sources for the jump.

The firm said sales of the next gen-eration of smartphones drove thesales boom, with 352,000 new cus-tomers signing up for contracts,mostly for smartphones, in the thirdquarter. The firm said it plans toenhance smartphone network capa-bilities in the coming years.

More than 22m customers now useO2, a rise of 4.8 per cent year on year.

O2 gains customers andaims for smartphone salesTELECOMS

CONTROVERSIAL businessman FrankTimis mining company plans to raise

$800m (496m) in a debt and equityissue to fund its iron ore project inSierra Leone.

Aim-listed African Minerals said yesterday it has raised 191mthrough a share placing and hopes tosecure a $500m (310m) loan facility.

The proceeds will finance theremaining construction at its flag-ship Tonkolili mine and allow firstproduction to take place towards theend of 2011.

The company successfully raised191m through a placing of 45mshares at 425p each in the market yes-terday, with payment expected on 18November.

Timis, the companys chairman,said: We are delighted with thetremendous response internationallyfrom a broad range of high qualityinstitutional investors.

We view this as a major endorse-ment of the quality of AfricanMinerals Tonkolili Project, our teamand Sierra Leone. We are now wellplaced to become a significant inde-pendent iron ore producer.

Canaccord Genuity, Mirabaud

Securities, Dundee Securities andGMP Securities Europe are acting asjoint placing agents for the company.

In October, the companys planned$1.5bn investment in the Tonkolili

project suffered a further delay withfellow investor Shandong Iron & Steelneeding extra time to complete duediligence.

Timis has said Tonkolili couldbecome the largest iron ore mine inthe world. The Romanian tycoon hitthe headlines last year when he washead of Regal Petroleum, when thefirm was slapped with a record600,000 fine by Aim for misleadinginvestors.

African Minerals raises 191mBYMARION DAKERS

MINING

Demand from

Asia pushes 3iearnings upBYMATTHEWWEST

BANKING

BYMATTHEWWEST

BANKING


NEWS | IN BRIEF

Hundreds more job losses at RokCollapsed housing repair firm Rok willlose 268 more jobs on top of the 700cuts already announced, administratorPwC said yesterday. The job cuts will fall

in the Scottish plumbing, heating andelectrical business. PwC said it wasforced to make the redundancies aftertalks with potential buyers of the busi-ness fell through on Wednesday night,but that discussions about the remain-der of the stricken business are ongoing.

Balfour bags new contractsBalfour Beatty, Britain's market leaderin big-ticket construction projects,increased its order book in the thirdquarter, underscoring its resilience in atough environment for the building sec-tor. The FTSE 250-listed companyincreased its order book to more than15bn despite the looming public sectorcuts to its core operations.

AMEC reports strong tradingOil services and engineering groupAMEC said yesterday that its currentbusiness trading was near the top end ofmarket expectations after major con-tract wins with BP and the US Navy.AMEC said its order book stood at3.1bn and added it was expecting amargin of around nine per cent forgroup earnings before interest, tax andamortisation.

BBA enjoys air travel revivalBBA Aviation said it expected to outper-form its markets yesterday and wascomfortable with its business growthgoing forward, as an increase in flyingactivity boosts demand for its aircraftservices. After a difficult 2009, the firmsaid October is expected to be thetwelfth consecutive month of growth inbusiness and general flight activity.Revenue increased six per cent on anorganic basis in the four months to theend of October.

320

300

280

260


ANALYSIS l 3i Groupp

316.1011 Nov

31 boss Michael Queen has boosted the firms investments in the first half of the year

Time to shift up a gear or twoMICHAEL Queen, 3is chief execu-tive, has been quietly repairing thefirms balance sheet since hearrived in January 2009. Yesterday,he was keen to signal a change indirection; having spent over a yearpreparing for growth, he said hewould now start delivering it.

There is some evidence to suggestthe new era has already begun.Investments in the first-half rose to327m (compared to 190m in2009) while realisations fell to293m, from 507m in the first sixmonths of 2009.

Still chunky debt acquisitionsworth 110m accounted for aroundhalf of its investments, and there

were just two new buyouts: Frenchhealthcare firm Vedici (35m) andTrescal (23m), a precision measure-ment expert. 3is dealmakers mighthave woken from a long slumber,but they are hardly alive and kick-ing.

In many ways, buying 3i is reallya punt on the private equity space.If it does recover, Queens hard workcoupled with 3is liquidity shouldensure the firm still trades at a rela-tively small 2.4 per cent discount toits 30 September net asset value.

BOTTOMLINEAnalysis by David Crow

CANACCORD Genuity has advisedAfrican Minerals since it first floated

on Aim in February 2005, when it wasknown as Sierra Leone DiamondCompany. The investment bank hassince seen the company through itsfirst diamond sale, numerous cash-rais-ing efforts and expansion into iron ore.

In yesterdays share placing,Canaccord Genuity acted as nominatedadviser and joint placing agent, along-side three other firms.

Robert Finlay, head of UK invest-

ment banking at Canaccord, has comefull circle with African Minerals, havingspent his childhood in Africa.

Finlay has been with Canaccordsince 2004, and looks after companiesinvolved in mining, energy and supportservices.

He has more than 20 years of cor-porate finance experience, havingworked for Credit Lyonnais, ABNAMRO and Hoare Govett.

Guy Blakeney, director of invest-ment banking for support services, hasnumerous mining clients includingMwana Africa and Kopane DiamondDevelopments.

If African Minerals decides to jointhe main stock market (and there havebeen rumours about such a move foryears), Blakeney has plenty of experi-ence, having helped Vision OpportunityChina Fund make the jump last month.

ROBERT FINLAY &GUY BLAKENEY

CANACCORDGENUITY

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RESOLUTION, the insurance buyoutgroup founded by entrepreneur CliveCowdery, said yesterday that itremains firmly on the acquisitiontrail, with a view to exploiting oppor-tunities overseas as well as in the UK.

Chief executive John Tiner said thegroup has a wider and longer-termambition to build restructuring proj-ects in other jurisdictions, includingthe US, though he emphasised thatthe groups priority is the UK.

Resolution, which aims to build upa life insurance group valued at10bn before floating or selling it by2013, yesterday reported boomingsales at its Friends Provident brandover the first nine months of the year,rising 35 per cent to 683m.

Friends Provident was boosted byits international and Lombard busi-nesses, which grew sales 31 per cent

to 176m and 184 per cent to 213mrespectively, while UK life and pen-sions sales lingered at similar levels tolast year. Friends Providents UK salestotalled 294m over the period, whilethe newly-acquired Axa UK life busi-ness contributed 26m of sales inSeptember.

Resolution last month announcedits intention to acquire Bupa Health

Assurance for a net consideration ofabout 102m, expected to completeearly next year. The deal aims to upthe groups market share in individ-ual and group protection.

Resolutions share price has tum-bled 30 per cent over the year so faragainst a five per cent rise in the sec-tor as a whole, making it one of the

worst performing insurance stocks inEurope. Analysts blame the decline inpart on concerns the company maylaunch a big rights issues to fundfuture deals. The shares lost 0.8 percent yesterday to close at 244.5p.

Resolution eyes

up further dealsBY VICTORIA BATES

INSURANCE

NEWS | IN BRIEF

AngloGold sees production riseAngloGold Ashanti, the worlds third-largest gold miner, beat its guidance for

third-quarter output and costs yester-day. Production rose three per cent fromthe previous quarter to 1.162m ounces,above its own forecast of 1.15m ounces.Cash costs rose to $643 per ounce from$617 an ounce in the previous threemonths, still below guidance of $645 anounce. Africas top gold miner, which hasoperations across four continents, saidoutput for the year would be 4.5mounces at a cost of $635 an ounce, atthe lower end of its forecast of 4.5m to4.7m.

Euromoney is back in the blackPublishing and electronic informationgroup Euromoney Institutional Investoryesterday reported preliminary resultsfor the fiscal year ended 30 September,reporting a pre-tax profit, compared to aloss last year, reflecting a good recoveryin advertising and sponsorship revenues.Profit before tax was 71.42m com-pared to a pre-tax loss of 17.36m in theprevious year. Underlying pre-tax profitwas 86.64m, up from 62.99m a yearago. Total revenue for the twelvemonths improved to 330.01m from317.59m a year earlier. It issued a finaldividend of 11.75p per share.

CONSUMER confidence fell for thefifth month in a row in October,

according to the closely-followedNationwide Consumer ConfidenceIndex published today.

The index dropped by one pointover the month, meaning it nowstands 32 points below its interimpeak of 84 seen in February of this

year.Nationwide attributed the drop in

sentiment to continuing pessimismover the stability of the economicrecovery, with its Expectations index which measures how optimisticpeople are for the future falling by

four points to 70 its lowest level in19 months.

Consumers also expressed a grow-ing pessimism towards the housing

market in October and now expectthe value of their home to decrease by 0.9 per cent over the next sixmonths. This compares to anincrease of 0.1 per cent predicted inSeptember.

The underlying anxiety aroundthe strength and direction of therecovery appears to remain, saidNationwides chief economistMartin Gahbauer.

He said that fears over the impactof the changes announced in theSpending Review were mounting.

Consumer confidence falls againas fears over the recovery grow

UK ECONOMY

THE number of homes repossessedby lenders in Britain fell to a two and

a half year low in the third quarter,data showed yesterday, but courtsissued more orders to reclaimhomes, suggesting there may be arise ahead.

Figures from the Council ofMortgage Lenders showed that 8,900homes were repossessed in the thirdquarter, down from 9,400 in the sec-ond quarter and the lowest since thefirst quarter of 2008.

Separate data from the Ministry of Justice showed that courts inEngland and Wales issued five per

cent more repossession orders com-pared with the previous quarter at14,138 the first quarterly rise in a

year.Court orders for repossessions do

not always result in a person losingtheir home, and almost half of theorders were suspended, givinghomeowners more time to repaytheir debts, but the third-quartermay signal a reversal of the recentdowntrend.

Repossessions have been fallingsince early 2009 when they peakedat 13,000, but analysts reckon theycould rise again once governmentspending cuts expected to cost halfa million public sector jobs over thenext five years -- kick in.

The substantial fiscal squeeze will increasingly hit public sectorjobs and consumers pockets, whilehouseholds already face high unem-ployment, muted earnings growth

and elevated debt levels, saidHoward Archer, economist at IHSGlobal Insight.

There will also be a lagged impactfrom the recession as relatively grad-ual recovery overall will mean thatmany people who have lost their

jobs will be unemployed for a longtime and this will weigh heavily ontheir finances.

The CML said home repossessionsin the first nine months of this yeartotalled 28,400, and was trending

below its forecast for 2010 as a whole.

Home repossessions tumbleBY HARRY BANKS

UK ECONOMY

BEST OF THE BROKERS

ANALYSIS lGenus

780

740

820

860

16 Aug 6 Sep 24 Sep 14 Oct 3 Nov

p820.00

11 Nov GENUSBrewin Dolphin has put its hold recom-mendation and 703p target price underreview following the farming technologyfirms annual general meeting. The brokerbelieves there is short-term weakness inthe Chinese market and uncertainty indemand from higher animal feed costs. Itadds that the second half of the year islikely to be stronger for the firm.

To appear in Best of the Brokers email your research to [email protected]

ANALYSIS lHill & Smith

270

250

290

310


p238.00

11 NovHILL & SMITHAltium Securities rates the highway infra-structure group a hold with a targetprice of 275p. The broker says it is disap-pointed by the firms recent interim man-agement statement, which reduced thecompanys operating profit forecast by7.5m for the year. Altium has cut its esti-mates for 2010 pre-tax profit to 41m fol-lowing the news.

ANALYSIS l Cairn

420

380

460

500


p380.80

11 Nov

CAIRNAlphaValue rates the oil explorer an addwith a target price of 460p. It believes thesale of Cairns Indian branch is a sensiblepart of the firms plan to realise value fromexplorations, and says the best way for thefirm to capture the value of increasing pro-duction with higher oil prices is throughdiscounted cash flow, which runs at a 67per cent upside.

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NomuraThe Japanese investment banking

group has appointed former CreditSuisse banker Jeremy Bennett to the

board of Nomura Capital Markets as anon-executive director.

Bennett was most recently a senioradviser at the Financial ServicesAuthority until November 2009, work-ing directly for chief executive HectorSants.

He also worked for the Treasury increating the Asset Protection Scheme,acting as interim chief executive untilthe establishment of the agency.

Barclays WealthThe wealth management firm has hiredMike Haslam to join its global research

and investments team as head of long-only distribution, focusing primarily onthe UK & Ireland and international pri-vate banking (EMEA) businesses.

Haslam joins from Gartmore, wherehe was the investment marketing spe-cialist. He has also held similar roles atM&G and Threadneedle.

Bridges VenturesThe sustainable growth investor hasexpanded its environment team withthe appointment of Tom Fourcade as aninvestment director.

Fourcade, who will be responsible for

new investments for the environmentsector in the Bridges venture funds, hasalmost 20 years of experience in thesector most recently as chief executiveof a biomass energy technology compa-ny and prior to that, chief executive of acleantech advisory business.

EvershedsThe law firm has announced that PeterHalpin, practice group head of its com-pany commercial group, will becomeclient services director, while KeithFroud will take up his position as headof the group from May next year.

CITY MOVES | WHOS SWITCHING JOBS Edited by Victoria Bates

Collins StewartThe investment banking group said yesterday itwill open a new derivatives desk, headed byRoger Sharma (pictured) and Brad Dunstan.

Sharma and Dunstan, who become co-headsof European equity derivatives, joined this weekfrom inter-dealer broker Icap, where they hadbeen working in senior derivatives sales sincethe beginning of last year.

They both previously worked at Bear Stearns.

+44 (0)20 7557 7245morganmckinley.com

To appear in CITYMOVESplease email your career

updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

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Best standingpoint

Lord Mayors show promises pomp,pageantry and a zulu dance troupe

THE best Tube lines are the District (Temple,Mansion House, Monument), Central (St Pauls andBank), and Northern Line (Bank ). The Circle,Metropolitan, and Hammersmith & City lines areclosed, as are the Victoria and Jubilee lines. Buses

will not enter much of the City itself. Buses will goas far as Liverpool Street, Old Street, Kingsway orthe South Bank, all of which are near the route.

GETTING THERE

THE position of Lord Mayor is one of the oldestsurviving positions in the UK. The post dates from1189, when Henri Fitz-Ailwyn became the firstLord Mayor. Since 1215, City liverymen have elect-ed the Lord Mayor. This placed the Lord Mayoroutside the Crowns control, which appointed allother local officials. The new Lord Mayor had to goto Westminster to swear his allegiance to the

crown. Westminster was considered far outside ofLondon, so the journey could be treacherous. Overtime, the Lord Mayors entourage grew, until his

journey to Westminster was considered a parade.The Lord Mayor is sworn in during a SilentCeremony, where no words are spoken apart froma short declaration. The ceremony is always heldthe day before the Lord Mayor Show.

HISTORY

The parade promisesto be the biggest ever,says Thomas Hamed

THE City of London will host the LordMayors Show this Saturday, celebrating the683rd Lord Mayor Michael Bear. The parade,

which starts tomorrow at 11am, follows thenew Mayor as he swears allegiance to theQueen.

The event will be one of the biggest ever, with 6,000 participants, including HongKong acrobats, South African Zulu war-riors, and hip-hop dancers from EastLondon. The parade also includes the LordMayors gilded carriage, 20 marching

bands, 71 floats, and a mobile post office.

The Lord Mayor is the head of the City ofLondon Corporation, the body that runsthe City. Each year, representatives fromeach livery company elect a new Mayor. Asthe majority of livery companies are infinancial services, the Lord Mayor is seen asrepresenting the UKs f inancial industry.

Bear is an Alderman and Sheriff of theCity. A trained civil engineer, Bear is regen-eration director at Hammerson, managingdirector of Balfour Beatty Property and anon-executive director of Arup.

The parade will begin when he presentsmedals to 12 reservist soldiers and one Citypolicy officer at Mansion House. Fromthere he will travel to St Pauls Cathedral,

where the dean blesses the Lord Mayor. Theparade then travels down Ludgate Hill andFleet Street, then takes the Strand to theRoyal Courts of Justice. The parade beginsits return journey at 1pm, following the

Victoria Embankment and Queen VictoriaStreet. As the Embankment is farthest fromthe Underground stop, crowds should bethinnest there. Fireworks will be on the

Thames at 5pm, between the Blackfriarsand Waterloo bridges.

CITY hiring is back to pre-downturnlevels, resulting in a jobseekers mar-ket, according to a new study by Hays,the financial recruitment firm. Basicsalaries have jumped due to the regu-latory crackdown on bonuses, withfast-growing demand for candidates infinancial IT, compliance and risk man-

agement.The report says: The candidate-driv-

en recruitment market is now firmly back in full swing with almost allstrong candidates having multipleoffers and being counter-offered.

In investment banking, researchanalysts boast one of the highest start-ing salaries: candidates with zero tothree years experience can now

expect to receive 30,000-45,000 plusbonuses of 15-30 per cent.

Tim Ledger, deputy at City recruit-ing firm Marks Sattin says talentedaccountants of five years experienceare particularly in demand: The mar-ket is very much candidate-driven

with salaries rising accordingly andcounter-offers of up to 25-30 per centof base salary not unheard-of.

City hiring back to pre-downturn levelsRECRUITMENT

BANKERS, hedge fund and investmentmanagers and stockbrokers must havetheir mobile calls taped fromNovember 2011 to help crack down onmarket abuses, the Citys financial

watchdog said yesterday.

Fixed line calls involving financial business such as share orders arealready taped to help the FinancialServices Authority (FSA) in any fraudor market abuse probes. The FSA saidthese rules are now being extended tomobile business calls. Tapes must bearchived for six months.

FSA: City managers must havemobiles tapped to combat fraudREGULATION

LORD MAYORS ROUTE 2010

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Putting your money in fundsthat persistently underperformhas its costs, says Jessica Mead

AN ASTONISHING 13bn is languish-ing in so-called dog funds, whichpersistently fail to deliver returnsfor investors, according to

BestInvests biannual Spot the Dog reportpublished earlier this week. Spot the Dog branded Jupiter as the worst performinginvestment house in terms of the value ofassets in dog funds. Also among the mainculprits were Scottish Widows/SWIP,Schroders, Gartmore and Henderson (seetable). Between them, these five firmsaccount for over half of the 13.29bn invest-ed in dog funds.

Dog funds are those that have underper-formed their chosen benchmark in eachof the past three years by at least 10 percent. This eliminates those funds thathave suffered temporarily from marketconditions and index trackers, which

will always undershoot due to charges. Adrian Lowcock, senior investment

adviser at BestInvest, says: With the age ofausterity cutting ever deeper into our per-sonal finances and threatening to reducepersonal wealth in the next few years it hasnever been more important to make sure we get the best from our savings andinvestments.

He adds: Investors simply cannot affordto leave their hard earned money languish-ing in dog funds and hopefully our reportserves as a wake up call for people toreview their portfolios and ensure theirmoney is working harder for them.

So what should you be looking for in afund manager? How can you avoid invest-ing your money in a dog fund? CarlHoward, head of direct investment atBarclays Bank, says that you need to beclear about why you are investing, yourtime horizon and your appetite for riskwhen it comes to selecting the right fundsfor you. Be clear what your investmentobjectives are. We would encourage cus-

Is your fund a dog?

Picture: ALAMY

PERSONALFINANCE NEWSBY JESSICA MEAD

FLEXIBLE DRAWDOWN SUITABLE FOR MOSTOver 90 per cent of financial advisers thinkthat flexible drawdown would be a suitableretirement solution for their clients, accord-ing to research conducted by pension prod-uct provider Suffolk Life. Suffolk Lifes JohnMoret said: Industry statistics suggest thatthe number of new drawdown cases in 2010is likely to exceed 40,000 and a significantnumber of these are likely to be potentialusers of flexible drawdown. In addition,there are over 300,000 current users ofdrawdown, many of whom will also find flex-ible drawdown appealing.

ENERGY BILL PAYER APATHY COSTS BILLIONSEnergy bill payers are wasting 4bn a year bynot shopping around for the best deal ontheir gas and electricity, according to the lat-est research from Moneysupermarket.com.The average house-hold could cut itsannual bill by

263 byswappingto the bestonlinedual fueldeal avail-able atthemoment.Ofgemresearch showsthat 58 per centof gas customers havenever even looked for a better deal on theirenergy provision, while the figure is 57 percent for electricity customers.

BARCLAYS FANTASY FUND MANAGERBarclays has this week launched a FantasyInvestment Portfolio competition which willrun for nine months as of 1 December. Freeof charge, the competition allows partici-pants to manage their own portfolios with avirtual 100,000 to invest. The competitorwith the largest assets under managementon 31 August 2011 will win 25,000, whichcan be taken as a cash alternative or can beplaced in one or more of the funds availableon the Barclays investments website. Fordetails or to register for the competition, goto www.barclaysfantasyfundmanager.co.uk

SKIPTON UNVEILS NEW PRODUCTSSkipton Building Society today unveils that itwill be launching its second, market leadingE-Bond with a rate of 3.15 per cent. Once theterm of the bond has expired, it will maturedirectly into an online account called LoyaltySaver, which currently offers customers arate of 2.25 per cent annual equivalent rate(AER). This week, Skipton has also launcheda new cash ISA range at rates of up to 4 percent AER. It offers a one, two, three andfive-year fixed ISA and these products willreplace those that were withdrawn yester-

day by the building society.

How to avoid the dog funds

tomers to view investments as having afive-year-plus horizon. You also need tothink about your appetite for risk howwould you feel if the value of your invest-ment fund were to fall and how muchvolatility would you be comfortable with?

Mick Gilligan, partner and head ofresearch at stockbrokers Killik & Co, rec-ommends looking at the past performanceof the fund and the fund manager. By look-ing at historical data, you can get an ideaof the risk taken to generate the returns as well as whether the fund manager hasexhibited skill or not.

However, he adds that while historicdata is important, it is just as important totake a view on the future and assess how amanager is positioned. Its important tolook beyond past performance and get aview of how the manager sees the world. Ifit agrees with your own view then thatshould be an encouragement to put yourmoney into the fund, he says.

Barclays Howard says that fund ratingsfirms can also be quite a helpful indicator:There are two main types: qualitative,which look at the approach the fund man-ager is taking, and quantitative which

GETTING THEPRICE RIGHTIS CRUCIALGARY BOOMMD & FOUNDER OF FINE WINEMERCHANT BORDEAUX INDEX

A

S THE giddy prices achieved at therecent auctions in Hong Kong con-firmed, the right price for anything is

what someones willing to pay for it.With premia to market averaging around 60

per cent on over 10m of widely availablestock, it speaks more of the bidders zealthan of the market reality.

But looking at the fine wine market morebroadly, as prices continue to canter up andthe investment play becomes ever more piv-otal, then price transparency and settle-ment certainty grows in importance.

I take the view that market professionals,as for financial services, should be able tolook after themselves. By contrast, privateclients need some protection.

Dont get me wrong, Im not calling forthe Financial Services Authority (FSA) toride into town but I do think the leadingplayers in the sector need to up their game.Even a cursory glance at the weekendpapers reveals a small army of wine invest-ment companies looking to service the pri-

vate investor.While I welcome new market entrants, I

have reservations about the promises madeand, above all, some of the prices chargedare rarely seen outside of Knightsbridge orthe auction houses of Hong Kong.

Caveat emptor for sure, but the marketought to be able to provide sufficient pricetransparency such that the credibility of theactivity is protected.

The price search websites are a goodstarting point but they are of limited use ina fast-moving market.

Elsewhere, the trade platforms are alsouseful but they tend to exclude non-tradeparticipants and they have really weak cov-erage across even the most mainstream ofwines.

Our own LiveTrade screen, which givesreal-time bid-offers across all of the topinvestment wines, has grown rapidly over

the past couple of years.It is now regarded as a part of the

markets infrastructure. There is growingevidence of a clear demand for a market-making role in this notoriously fracturedmarket.

The next steps will be to improve the reli-ability and visibility of trade in en primeur(non-physical) wines and make movestowards dematerialised settlement.

This is hardly cutting-edge innovation butthe kind of measures that will build flexibili-ty and certainty.

All these efforts towards transparencymight sound like turkeys voting forChristmas but Im firmly of the opinion thatthe more we improve the reliability and thecost of fine wine trading, the more activityand liquidity can grow.

There are exciting times ahead for thewine market and we have to make sure that

all parties have the right tools to takeadvantage of them.

Investment | Personal Finance18 CITYA.M. 12 NOVEMBER 2010

Fund X

Benchmark

9753

ANALYSIS l The long-term effect of underperformance

100,000

80,000

60,000

40,000

20,000

1Year

Source: Bestinvest

11 13 15 17 19 21 23 25 27 29

DOG FUNDS

Number of Dogs Value m % Total Group Value

Jupiter 3 2,622 36

Scottish Widows/SWIP 11 2,144 42

Schroders 2 1,553 16

Gartmore 5 941 24

Henderson 4 871 25

AXA Sun Life 3 529 44

Aviva Investors 3 438 19

F&C Asset Management 3 400 16

Martin Currie 7 374 34

Halifax 1 371 9

AXA Framlington 3 362 12

Artemis 1 357 6

Liontrust 1 304 55

JP Morgan 1 251 8

Threadneedle 2 247 2

analyse performance.He adds: You could also look at how the

fund is performing against its benchmark.While past performance cant tell you howthat individual fund will perform in thefuture, it should give you a sense of howthat fund is managed.

In Gilligans view, unexpected perform-ance good or bad should be a reason toreassess: For example, [Invescos] NeilWoodford had a bad year last year but weprobably would have been more concernedif he had had a good year because it wasnthis type of market. He also warns againstselling out of funds that have performedpoorly because of market conditions.

Youll never get your investments per-fect. But some research into past perform-ance, the manager and the fundsinvestment objective means youll avoidbuying into the worst of the dogs.

Source: BestInvest

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LONDONS TOP 250 Trade these shares from 1.50 with Interactive Investor - www.iii.co.uk

3i . . . . . . . . . . . . . . . . . . . . . . . . 316 .10 8. 80 328. 30 246 .903i Infrastructure . . . . . . . . . . . . .116.70 +1.30 117.00 97.00A.B. Foods . . . . . . . . . . . . . . . .1099.00 1.00 1113.00 790.00Aberdeen Asset Man. . . . .. . . . .179.40 5.70 191.60 111.00Admiral. . . . . . . . . . . . . . . . . . .1603.00 30.00 1721.00 1003.00Aegis . . . . . . . . . . . . . . . . . . . . . 130. 50 2. 00 137 .30 103 .10Afren . . . . . . . . . . . . . . . . . . . . . 127. 20 + 0. 70 135 .90 77. 00African Barr Gold . .. . . . .. . . . .564.50 +15.50 685.00 520.50Aggreko . . . . . . . . . . . . . . . . . .1588.00 +6.00 1698.00 727.50Alliance Trust . . . . . . . . . . . . . . .361.30 +5.50 363.00 292.80AMEC. . . . . . . . . . . . . . . . . . . . 1100.00 +1.00 1144.00 728.00Amlin . . . . . . . . . . . . . . . . . . . . . 395. 00 1. 00 437 .60 357 .30Anglo American . . .. . . . .. . . .3055.00 +100.00 3069.00 2210.00Antofagasta . . . . . . . . . . . . . . .1472.00 +67.00 1482.00 755.50Aquarius Platinum .. . . . .. . . . .389.30 +8.60 490.00 211.50ARM Holdings. . . . . . . . . . . . . . .350.60 +0.30 419.50 150.60Ashmore. . . . . . . . . . . . . . . . . . .368.50* 8.50 400.50 215.00Ashtead . . . . . . . . . . . . . . . . . . .133.60 1.30 135.60 61.25Astrazeneca . . . . . . . . . . . . . . .3033.50 31.00 3389.50 2680.50Atkins(Ws) . . . . . . . . . . . . . . . . .736.00 17.00 801.00 539.00Autonomy Corp . . .. . . . .. . . .1419.00 7.00 2012.00 1319.00Aveva . . . . . . . . . . . . . . . . . . . .1433.00 21.00 1572.00 900.50Aviva . . . . . . . . . . . . . . . . . . . . .403.10* 13.40 428.70 290.20Babcock International . . . .. . . . .570.50 8.00 645.50 489.00BAE Systems . . . . . . . . . . . . . . .354.50* 4.90 389.90 288.10Balfour Beatty. . . . . . . . . . . . . . .284.80* 0.30 304.80 228.60Barclays . . . . . . . . . . . . . . . . . . .284.90 4.70 394.25 253.40Barratt Development . . . . .. . . . ..81.30 2.30 149.90 75.50BBA Aviation . . . . . . . . . . . . . . .198.30 8.00 220.00 145.90Berkeley . . . . . . . . . . . . . . . . . . .835.50 6.00 917.50 735.00BG . . . . . . . . . . . . . . . . . . . . . . 1277. 50 + 0. 50 1302. 50 966 .90BHP Billiton . . . . . . . . . . . . . . .2413.00 +3.00 2500.00 1678.00BlackRock Mining. .. . . . .. . . . .736.00 +9.00 737.50 490.00BlueBay . . . . . . . . . . . . . . . . . . .481.20* 0.30 495.00 251.00Bluecrest Allblue GBP. . . .. . . . .174.00 +0.80 174.00 151.00Booker. . . . . . . . . . . . . . . . . . . . . 55 .25* + 0. 75 56. 00 37. 50BP . . . . . . . . . . . . . . . . . . . . . . . 449. 80 +4 .35 658 .20 296 .00Brit Insurance . . . . . . . . . . . . . .1042.00 1052.00 709.00British Airways . . . . . . . . . . . . . .264.20 8.60 290.00 180.20British Amer. Tob . .. . . . .. . . .2405.50 10.50 2490.50 1832.00British Empire Tst . .. . . . .. . . . .492.30 +2.60 497.00 338.50British Land . . . . . . . . . . . . . . . .508.00* +7.00 525.00 416.00

Britvic. . . . . . . . . . . . . . . . . . . . . 476. 40 0. 70 518 .00 354 .30

Brown(N.) . . . . . . . . . . . . . . . . . .280.80 2.70 308.00 204.80BSkyB . . . . . . . . . . . . . . . . . . . .726.50* 0.50 737.00 521.00BT . . . . . . . . . . . . . . . . . . . . . . . 169. 10 +9 .70 169 .80 108 .40BTG . . . . . . . . . . . . . . . . . . . . . . 259 .00 1 .00 270. 80 150. 00Bunzl . . . . . . . . . . . . . . . . . . . . . 721. 50 * 8. 00 784. 50 614 .00Burberry. . . . . . . . . . . . . . . . . .1007.00 +8.00 1065.00 555.50Cable & Wire Comms . . . .. . . . ..49.39* 0.81 150.00 46.51Cable & Wire Wwide . . . . . . . . . . .70.15 +0.15 94.80 60.05Cairn Energy. . . . . . . . . . . . . . . .380.80 +1.30 497.60 306.80Caledonia Invs . . . .. . . . .. . . .1802.00 2.00 1833.00 1496.00Capita. . . . . . . . . . . . . . . . . . . . . 732. 00 +1 .50 829. 50 693 .00Capital & Counties .. . . . .. . . . .151.50 +1.40 159.00 99.60Capital Shopping Centres . . . . . .384.90 0.70 523.50 300.10Carillion . . . . . . . . . . . . . . . . . . .347.40* 5.30 361.90 272.00Carnival . . . . . . . . . . . . . . . . . .2690.00 19.00 2937.00 1963.00Catlin . . . . . . . . . . . . . . . . . . . . . 350. 50 3. 80 394 .60 303 .20Centamin Egypt . . . . . . . . . . . . .184.00 8.20 202.80 103.50Centrica . . . . . . . . . . . . . . . . . . .336.00* 0.20 347.00 243.00Charter Intl . . . . . . . . . . . . . . . . .706.00 16.00 855.50 563.50Chemring . . . . . . . . . . . . . . . . .2836.00 +4.00 3711.00 2551.00Close Bros . . . . . . . . . . . . . . . . .808.00* 10.00 834.00 657.00Cobham . . . . . . . . . . . . . . . . . . .207.90* +0.70 278.60 199.20

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

COLT Group . . . . . . . . . . . . . . . . 119.10 0.90 144.20 107.70Compass . . . . . . . . . . . . . . . . . .542.00 +1.50 574.50 399.30Cookson. . . . . . . . . . . . . . . . . . .530.50 32.50 616.00 364.80Croda Intl . . . . . . . . . . . . . . . . .1446.00 4.00 1540.00 735.00Daily Mail A . . . . . . . . . . . . . . . .555.00 7.50 573.50 401.70Davis Service . . . . . . . .

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