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A POTENTIALLY unlimited amount of dollarliquidity is to be injected into banking mar-kets throughout the world, five centralbanks announced yesterday.

It is hoped the measure will boost moneymarkets in the wake of the Eurozone debtcrisis.

The Bank of England, European CentralBank (ECB), US Federal Reserve, Bank of Japan and Swiss National Bank have allannounced a series of reverse repo opera-tions to give banks more security and cer-tainty in terms of dollar liquidity over theyear end.

We welcome the move, said InvestecsPhilip Shaw. Nonetheless markets should beunder no illusions whatsoever that this is acure all, he warned.

Risk assets surged following the news. TheFTSEurofirst 300 index of top Europeanshares closed up 2.1 per cent, while theEurostoxx 50 spiked by nearly 3.5 per cent.

The euro soared over one per cent againstthe dollar, touching $1.393 at one point.

Bank shares also pared recent losses.Lloyds jumped by 7.2 per cent, while HSBCand Barclays both rose just short of four percent. Across the channel, BNP Paribas stocksleapt by over 13 per cent.

From a funding point of view this easesmarket concerns, said BNP Paribas head of

foreign exchange strategy Steven Saywell.This is very useful there was increasingconcern about the debt situation and nerv-ousness about the prospect of Greek default.

The only limit on the amount we willlend is demand for the facility and the collat-eral to back it, an ECB spokesman said.Clearly the central banks have to limit theircredit risk by taking collateral and applyinga haircut to it.

The loans will have three-month maturi-ties. One-week maturities are usually onoffer in central banks more regular opera-tions. MORE: P3

BUSINESS WITH PERSONALITYwww.cityam.comIssue 1,469 Friday 16 September 2011 FREE

FTSE 100 5,337.54 +110.52 DOW 11,433.18 +186.45 NASDAQ 2,607.07 +34.52 /$ 1.58 0.01 /1.14 -0.01 /$ 1.39 0.02

UBS is expected to plunge bank into the redthis quarter after the bank said a single roguetrader had cost it $2bn (1.26bn).

Ratings agency Moodys has put the bankon review for a potential downgrade, it saidlate last night, citing ongoing weaknesses inthe groups risk management and controls.

The trader at the centre of the storm,believed to be 31-year-old Kweku Adoboli, wasarrested at the banks City offices at 3.30amyesterday morning and taken to Bishopsgatepolice station following a probe into someunusual transactions.

It is understood that after the loss was dis-covered, Adobolis boss John Hughes resigned.

In an email to the banks 65,000 employees,UBS chief Oswald Grbel said: We regret toinform you that yesterday we uncovered acase of unauthorised trading by a trader inthe investment bank we currently estimatethe loss on the trades to be around $2bn.

Adoboli, who was a director on the banksdelta one equities desk, is believed to have been trading with the banks own capitalwhen the deals under investigation occurred.

Although Grbel assured employees thatno client positions were affected, the inci-dent is a major blow for a bank that was just beginning to claw its way back to successafter being bailed out by the Swiss state.

The loss is equivalent to most of the annual$2.5bn cost savings that the bank had hopedto make by axing 3,500 workers globally.

Market participants speculated thatAdoboli could have been trading on the Swissfranc, which moved some ten per cent in twominutes on 6 September, when the SwissNational Bank unveiled a shock decision topeg its currency to the euro.

The trader was a specialist in exchange-traded funds, instruments that can allowinvestors to increase their leverage on singletrades to an almost unlimited degree.

He posted on his Facebook page, sincedeleted, that he need[ed] a miracle after theSwiss move to peg the currency last week. His

ROGUE TRADERLOSES UBS $2BNBY JULIET SAMUEL

BANKING

father John Adoboli, a retired UN workerfrom Ghana, told reporters last night he washeartbroken, because fraud is not our way oflife, but did not wish to draw conclusions.

UBS will now begin a wide-ranging reviewof its risk management practices, involving aprobe into its entire delta one desk, whichuses both client and proprietary capital totrade derivatives that track underlying assets.

Cass Business Schools Sonia Falconieri sug-gested that the case could be used to fast-trackreforms proposed by John Vickers this week toring-fence banks investment banking armsfrom their retail operations. But she addedthat although it could insulate depositorsfrom the effects, the reforms will not pre-vent further incidents from happening.

ALLISTER HEATH: P2; P6-8

Banks granted liquidity boostBY TIM WALLACE AND JULIAN HARRISMARKETS

Kweku Adoboli, aspictured on hisFacebook page

Certified Distribution

01/08/11 till 28/08/11 is 92,745

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News2 CITYA.M. 16 SEPTEMBER 2011

Myners slamsbank reformsLORD Myners blasted the Vickersreport into reforming the UKs banks yesterday, arguing that it missed anopportunity to properly interrogatethe sector.

In a House of Lords debate the for-mer City minister said the reforms would neither reduce the risk of banks causing another crisis, norimprove competition. The reforms would also saddle banks with theneed to raise about 140bn in extracapital at a time when markets wereunlikely to tolerate it, he warned.

It has failed to really explore thecauses of the banking crisis and inparticular the failures of manage-ment and governance, and insteadaddressed itself to how we mightlessen the damage of a repeat of this

crisis rather than reducing the risk ofa further crisis, he told City A.M.

I think it is rather narrow in theissues it chooses to address and givesno serious consideration to breakingup the banks or establishing a newinvestment bank.

Myners said he was concerned thatthe review excessively focused onring-fencing and did not address thegrowth in bank assets from about 50per cent of UK GDP in the 1980s to600 per cent today. Less than three percent of the assets of the big four banksis in lending to business, he added.

BYALISON LOCK

BANKING

Euro crisis like 1,000 rogue traders

BY far the biggest threat to the worldeconomy comes from the Eurozonecrisis. Rogue traders are a danger to usall, but well-capitalised large banks cancope quite easily with a $2bn loss (the well-deserved reputational disaster isanother matter). That is why all recentglobal banking reforms have empha-sised the need for financial firms tohold far more capital to protect them-selves against trading losses or, morelikely, write-offs from their loan books.

While invariably making fascinat-ing case-studies in hubris, roguetraders fortunately are a sideshow to

the real issue: the situation facing theworld is now so bad that the top cen-tral banks were forced yesterday toannounce liquidity providing opera-tions to boost the supply of dollars to

the European banking system. Suchconcerted moves dont take place ifthere is nothing wrong. They confirmthat international financial institu-tions now believe that the counter-party risk entailed in dealing withsome European firms is too high to bear because of their exposure tododgy Eurozone governments.

The real rogues are those responsi-ble for this situation: those in politics,business and the media who (in an actof hubris orders of magnitude greaterthan anything a trader could evermanage) supported the creation of aflawed single currency despite warn-ings this could only end in tears; andthe profligate politicians who spent years mismanaging their economies,aided and abated by those who stoodto gain from such incompetence.

American companies are especially

worried by the Eurozone crisis. Manylarge US institutions have moved theirdeposits from any European bank theyperceive to be at risk to larger institu-tions deemed solid or likely to be

bailed out. One major US financialinstitution told me that it has beentesting its lines of credit to gauge thestrength of the banks with which ithas dealings; fortunately, in this case itdiscovered that all seemed still to befine. On top of the sovereign defaultrisk, there is a widespread belief thatmany European banks may be holdingvast amounts of property assets held atunrealistic valuations on their books.One top Wall Street executive is pri-vately predicting European versions ofthe Troubled Asset Relief Programme(Tarp) as well as of the UKs asset pro-tection scheme.

But if these sorts of things do hap-pen, they will have a host of conse-quences. UBSs woes are bad for theCity in general, but wait untilEuropean governments or even theEuropean Financial Stability Facility

(ESFS) starts taking stakes in bigEurozone lenders.

UBS shareholders deserve to be furi-ous at their managements shockinginability to put in place proper systems

to stop unauthorised trades. Counter-intuitively, however, UBSs disgrace isalmost reassuring: it shows that thesystem can easily cope with a randomhit. The bank lost just 0.4 per cent of itscapital, even when defined on thestrictest Basel rules; it could havecoped with much more. Fortunately,even the largest trading losses tend topale in comparison with the less high-profile losses regularly incurred onproperty-based loans, dud long-terminvestments or goodwill write-offs.

The real systemic worry is theEurozone. The financial system simplycannot cope with the uncontrolleddefault of European countries.Imagine UBSs rogue trade and thenmultiply it by a thousand. It just does-nt bear thinking about.

allister.heath@cityam.comFollow me on Twitter: @allisterheath

GOLDMAN Sachs is to close its $1.6bn(1bn) Global Alpha computer-basedhedge fund after a poor trading per-formance and investor demands topull out their money.

Goldman has written to the fundsinvestors to tell them the fund, whichmakes money by quantitative trad-ing, would be wound down by theend of October.

It has performed badly this year

and is about 13 per cent down for theyear, far more than the one per centaverage fall across quant funds.

Global Alpha managed about$12bn at its peak in 2007 but hasbeen in decline after suffering a hor-rendous performance in August 2007.The fund lost 22.5 per cent in a mat-ter of weeks as market meltdown leftquant funds reeling.

But it has failed to bounce backthis year in contrast to its peers acrossthe sector, which are proving betterat handling fresh market turbulence.

BYALISON LOCK

HEDGE FUNDS

Goldman cuts hedge fundGoldman Sachs chief executive Lloyd Blankfein is closing the Global Alpha hedge fund

NEWS | IN BRIEF

US Democrats back AT&T dealA group of influential Democrat law-makers have written to US PresidentBarack Obama calling on him to approvetelecoms giant AT&Ts $39bn (24.7bn)proposed acquisition of T-Mobile USAfrom Deutsche Telekom. The fifteen rep-resentatives have said the deal would

help to cut unemployment and encour-age investment at a time when the USbadly needs it. The Justice Departmenthas moved to block the deal, arguingthat it would reduce competition andlead to higher prices for consumers.

City welcomes UKs ECB lawsuitThe City of London Corporation yester-day welcomed government action to suethe European Central Bank over plans toforce clearing houses to move to Europe.Policy chairman Stuart Fraser toldCityA.M. it was vital that European legisla-tion was underpinned by sound eco-nomic reasoning rather than using therecent crises as an excuse to build barri-ers to cross-border trade. Fraser saidthe UK must guard against attempts tosplit European countries from theEurozone but said he was hopeful apragmatic solution could be found.

EDITORS LETTER

ALLISTER HEATH

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

Printed by Newsfax International,Beam Reach 5 Business Park,Marsh Way, Rainham, Essex, RM13 8RS

Distribution helplineIf you have any comments about the distributionof City A.M. Please ring 0207 015 1230, or emaildistribution@cityam.com

Lord Myners believesmore bank reformoptions could havebeen considered in theVickers Report

4th Floor, 33 Queen Street, London, EC4R 1BRTel: 020 3201 8900 Fax: 020 748 2711Email: news@cityam.com www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor David CrowActing Night Editor Marion DakersBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelSports Editor Frank DalleresActing Art Director Jo SimpsonPictures Alice HeppleCommercialSales Director Jeremy SlatteryCommercial Director Harry Owen

Head of Distribution Nick Owen

BTG PACTUAL LOOKS AT IPO AS ITEYES EXPANSIONBTG Pactual, Brazils largest inde-pendent investment bank, is lookingto hold an initial public offering asearly as next year as one option tofund an ambitious expansion in LatinAmerica. The move comes as the bankis also strengthening its foothold inAsia with a planned strategic alliancewith a financial institution in Chinathat will involve some mutual pur-chases of equity.

SUBSCRIBER CANCELLATIONS STRIKENETFLIXNetflix shares tumbled close to 15 percent on Thursday after the fast-grow-ing DVD and online video streamingservice said it expected 1m people tocancel their subscriptions in the US because of a recent price hike. It

downgraded its subscriber estimatesin a letter to shareholders.

BAA TO CHALLENGE ORDER TO SELLAIRPORTS

BAA is to mount a fresh legal chal-lenge against the competition regula-tors rulings that it must reduce itsmarket dominance by selling some ofits airports. Britains leading airportsoperator said on Thursday it wouldseek a judicial review of theCompetition Commissions rulingsthat it should sell some of its busi-nesses Stansted airport and eitherEdinburgh or Glasgow airports.

VICKERS SHAKE-UP CUES SANTANDERLISTING DELAYThe planned listing of Santanders UKoperations on the London StockExchange is likely to be delayed follow-ing the proposed Vickers reforms tooverhaul British banking until at least2013. Initially the Spanish bank hadhoped to float 20 per cent ofSantander UK, the subsidiary formed by the acquisitions of three former

building societies, for about 3bn inthe second half of this year.

CABLE STANDS UP FOR STRATEGY TOCUT BRITAINS DEFICITVince Cable has mounted a staunchdefence of the governments deficitreduction strategy amid growingpressure on the coalition to come upwith an economic Plan B. In a pam-phlet written for the CentreForumthink-tank, the Business Secretaryacknowledges economists concernsabout Britains sluggish recovery.

MINT HOTELS TO JOIN HILTON STABLEIN 600M DEALBlackstone is poised to complete oneof Europes biggest hotel deals sincethe credit crunch after agreeingterms on the acquisition of the MintHotel group formerly City Inn forjust over 600 million. The privatelyowned chains eight hotels will berun as part of the American invest-

ment firms Hilton Worldwide busi-ness under a management contract.

EDF ENERGY RAISES ELECTRICITY ANDGAS PRICESAverage electricity tariffs will also riseby 4.5 per cent in changes that willcome into effect on 10 November andreflect rising wholesale energy, net-work and other costs. EDFs decisionmeans that all of the big six powersuppliers have now raised their tariffsfor the coming winter.

CHINA RISKS A HARD LANDING ASGLOBAL WOES SPREADChinas carefully-managed soft land-ing is turning harder by the day,threatening to deflate the torrid cred-it bubble of the past three years.There is a large potential risk, saidZhu Min, the deputy managing direc-tor of the IMF and a former Chineseofficial. Mr Zhu said China had dou-bled the loan ratio from below 100 per

cent of GDP before the Lehman crisisto roughly 200 per cent today.

YAHOO HEARS FROM POTENTIALBIDDERSYahoo has been contacted by poten-tial bidders for some or all of theInternet company, even as it focuseson stabilizing its executive ranks andbolstering its online-ad business, peo-ple familiar with the matter said.Executives at private-equity firmSilver Lake Partners are among thepotential bidders that have calledYahoo directors.

BRIDGESTONE TO PLEAD GUILTY INBID-RIGGING CASEBridgestone will plead guilty and paya $28m criminal fine for participat-ing in bid-rigging and bribery con-spiracies related to the sale of marinehose, the Justice Department said yes-terday. It said Bridgestone was part ofan antitrust cartel that affected

prices for hundreds of millions of dol-lars of marine hose.

WHAT THE OTHER PAPERS SAY THIS MORNING

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News 3CITYA.M. 16 SEPTEMBER 2011

Q.WHATS THE PROBLEM?

A.Banks are worried about the cri-sis in the Eurozone, and do notknow which other banks they cantrust. That means they are cuttingthe amount they lend to each other.

Q.

WHATS BEING DONE ABOUT IT?

A.Central banks in Europe, the UK,US, Switzerland and Japan willmake loans to help banks that needmore US dollars. They are having lessdifficulty borrowing euros, becauseof European Central Bank support.

Q.HOW DOES THAT WORK?

A.The central banks already offerone-week dollar loans to banks.

These new loans onlyhave to be paid back afterthree months. That givesthe banks a bit more security andcertainty about where their liquidityis coming from.

Q.HOW POPULAR WILL IT BE?

A.Judging by the market reaction --very. The euro rose against the

dollar on the news. In the height ofthe financial crisis the central banksoffered similar three-month loans.In November and December 2008over $11bn was borrowed from theBank of England at each auction.This time round, banks will be ableto borrow as much as they want aslong as they can provide collateralagainst the loans.

The Bank of England - governor MervynKing above - last offered these loans in thecr isi s height. Picture: REUTERS

Jean-Claude Trichet, above, from theEuropean Central Bank, is leading effortsto save the euro. Picture: REUTERS

The Bank of Japans governor MasaakiShirakawa, above, is urging more actionon the euro. Pic: REUTERS

Fed head Ben Bernanke, right, maylaunch more quantitative easing in a bidto boost the US economy. Pic: REUTERS

The Swiss National Bank, led by PhilippHildebrand, above, took action on thestrong franc last week. Pic: REUTERS

*Barclays Bank Base Rate (BBBR) is currently 0.50% variable and typically follows the Bank of England Base Rate but is not guaranteed to do so. Minimum loan 5,000 and maximum 2m. Barclaystracker rate mortgages can fluctuate in line with BBBR.

BT residential customers, calls will cost no more than 4.5p per minute, plus 12.5p call set-up fee (current at July 2011). The price on non-BT phone lines may be different. To maintain a high qualityservice and for security reasons we may monitor and/or record calls. Lines are open 8am to 9pm, 7 days a week.

Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

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EURO-BONDS were attacked by severalleading Eurozone figures yesterday, ina fierce rebuttal of the plan currentlyunder consideration by the EuropeanCommission.

Senior European Central Bank offi-cial Juergen Stark threw his weight behind compatriot Angela Merkel,stating: Euro-bonds are no solution tothe debt crisis. There are no simple,quick solutions to the debt crisis on

the European level. GermanChancellor Merkel had earlier blastedthe bonds as absolutely wrong.

In order to bring about commoninterest rates, you need similar com-petitiveness levels, similar budget situ-ations. You dont get them bycollectivising debts, Merkel said.

Eurobonds would effectively resultin the Eurozones core countriesunderwriting government debt fromstates such as Greece. The EuropeanCommission is weighing up its options

on how the Eurozone might issuejoint bonds, its President Jose ManuelBarroso said on Wednesday.

Merkels nervousness over theEurozone crisis was amplified yester-day, when her partys financespokesman, Michael Meister, urgedcoalition partners to not stoke anyother debates about Greece potential-ly leaving the Eurozone. Merkel insiststhat the Eurozone will stick togetherwith all its current members.

Meanwhile, Spain and France soldnearly all the bonds they had offered

at auctions yesterday. Spains Treasurysold one billion euros worth of a 2019bond and 1.4bn and 1.5bn euros of twobonds maturing in April and October2020 respectively.

The average yield on the 2019 bondwas 4.969 per cent. On the April 2020bond it was 5.006 per cent, and for theOctober 2020 bond it was 5.156 percent. Spain will introduce a wealth taxin a bid to cut its deficit, a ministersaid yesterday.

EUROZONE JOBS RISE: P18

Stark echoes

Merkel attack

on euro-bondsBY JULIAN HARRIS

EUROZONE

CENTRAL BANK DOLLAR LENDING - WHOS DOING WHAT?

Q A&

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EUROPE-wide equity trading platformChi-X Europe fielded more trades thanthe London Stock Exchange in August,putting it ahead of all other exchangesin the region, data from theFederation of EuropeanSecurities Exchanges yesterdayshowed.

Chi-X, which allows multi-lateral equity trades in Europe-listed companies, saw 43.1mtrades completed in August, a 58per cent leap from the 27.3mtrades seen in July and justahead of the London StockExchange Group, whichsaw 41.6m trades.

But the LSE Group, which includes Italian

stock market BorsaItaliana and its multilat-eral platform Turquoise,

said its trading period was shortenedby the UKs August bank holiday andit had a smaller geographical reach.

In turnover terms, the LSEG, led byXavier Rolet (pictured), remains thebigger exchange, with a total 270.8m(235m) of turnover in August, com-

pared to213.8m on Chi-X.But Chi-X has grown closer to

pipping its longer-establishedcompetitor and is currentlyfinalising a takeover by US-basedplatform BATS Global, which

will expand its reach further.Its chief executive Alasdair

Haynes said clientswanted to cut costs.

Were cheaperthan the incum-bent exchanges. Ifas a venue you arereliable, price will

be one of thedeciding factors,he said.

Chi-X beatingLSE on tradesBYALISON LOCK

CAPITAL MARKETS

BLACKBERRY maker Research inMotion stunned analysts yesterdayafter posting a sales slump far worsethan expectations and warning of apoor outlook for the rest of the year.

RIMs shares fell more than 18 percent in after-hours trading after itsaid net profit fell 47 per cent in the

second quarter to $419m (266m), or$0.80 per share, on revenue of $4.2bn.

RIM said it shipped 10.6m smart-phones and 200,000 PlayBook tabletcomputers in the past quarter,sharply below analysts average esti-mate of almost 12m phones and600,000 tablets. RIMs had forecast 11to 12.5m BlackBerry shipments.

The Canadian company also paint-ed a less-than-rosy picture for its cur-rent quarter and pointed towards the

lower end of an already reduced full-year outlook.

Research in Motion stuns with47pc profit slide as sales slump

TECHNOLOGY

THE INDEPENDENT directors ofMitchells & Butlers have issued a putup or shut up notice to Piedmont,forcing Joe Lewis to make a publicoffer for the group by 17 October.

If Piedmont fails to come back witha firm offer by the deadline of 5pmon 17 October, following its possibleoffer of 230p per share on Monday,the group must confirm publicly it is

no longer contemplating such a bid.M&Bs independent directors havemade the demands in accordancewith rule 2.6 of the new edition ofthe Takeover Code, which comesinto force from Monday.

But sources close to Piedmont, theinvestment vehicle owned by forex bil-lionaire Joe Lewis, said Lewis expectedthe notice and he continues to con-sider his options.

Piedmont, which holds a 22.8 percent holding in M&B, clarified late

on Wednesday that speculation itspossible offer of 230p per share repre-sents its final bid for the Harvesterand All Bar One owner is incorrect.

Elpida, the investment vehicleowned by John Magnier and JPMcManus that owns a 20.1 per centstake in M&B, has not yet made a pub-lic statement on Piedmonts offer.

But on Wednesday, Lewis told associ-ates he hopes to meet the Irishinvestors, who have been guests on hisyacht Aviva, within 48 hours.

Mitchells & Butlers sets Lewisa deadline for his next moveBYHARRIET DENNYS

LEISURE

News4 CITYA.M. 16 SEPTEMBER 2011

NEW CHAIRMAN FOR MORGAN STANLEY

MORGAN Stanleys chief executive James Gorman (pictured) will take over as chairmanfrom John Mack at the end of the year. Macks aggressive cost-cutting tactics earned himthe nickname Mack The Knife. Gorman, 52, will stay as chief executive as agreed two

years ago when Mack became chairman. The change comes as the bank pares back itstrading activities to focus on more stable wealth management income. Pic: REUTERS

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KWEKU Adoboli, the 31-year-old traderat the centre of a $2bn storm yester-day, is a typical trader type, like a lotof these guys, coming across as self-confident and calm under pressure,according to one professional contact

who spoke to him recently.He is also hard-working. He was

pretty committed to his job at UBS inthere early and out late, said the con-tact. That is a picture given ample sup-port by the time and place of hisarrest, at 3.30am on Thursday fromUBSs City office, although he was like-ly aware of the coming storm by thatpoint.

He has worked at the bank since2003, joining straight out ofNottingham University where he stud-ied computer science. He entered firstas a trainee and then became a tradesupport analyst in the back office

before moving on to the Delta Oneequity trading desk, where he rose to

become a director focused onexchange-traded funds (ETFs).

But he has interests outside the City,including photography and cycling,and is a fan of the Nigerian Afrobeatsinger Fela Kuti as well as electromusic producer MC Xander and theUK singer and pianist GwynethHerbet.

He lived for some time inShoreditch and listed the localBoundary Restaurant & Bar as afavourite haunt. But he was also is amember of a Facebook group namedILoveGhana.com, a community group

based in Tema.Among the other groups listed on

his profile is one devoted to the unusu-al hat worn by Princess Beatrice to theroyal wedding. By Juliet Samuel

Profile | Trader

with a taste forFela and royalty

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Focus on UBS rogue trader6 CITYA.M. 16 SEPTEMBER 2011

Scandal dents Swiss banks reputationTHE three keys that make up the UBSlogo symbolise confidence, securityand discretion. After yesterdaysnews, that logo needs to beredesigned.

Although the $2bn hit is likely to

wipe out third quarter profits (esti-mated at $1.5bn by analysts), the lossitself will be manageable enough.

UBS lost $1.32bn in the secondquarter of 2009 and lived to tell thetale, while its subprime losses as

well as those at other banks wereeven larger (see table on opposite page).

The hit is equivalent to 3.4 per centof the banks tangible book value atthe end of the second quarter, or a hitof around 44 basis points to its capi-

tal as measured under Basel III, sayanalysts at RBC. Even on the mostconservative measure, UBS is forecastto have a core tier one capital ratio of10 per cent under Basel III at the endof 2012, falling to 9.8 per cent follow-

ing this hit, still more than CreditSuisse on 8.8 per cent.It is the scale of the reputational

damage that could end up costingUBS much, much more as lastnights Moodys downgrade reviewdemonstrates.

The rogue trader scandal couldnthave come at a worse time for theSwiss bank, which was just begin-ning to recover from a flight of

wealth management clients follow-

ing the US tax evasion probe andfinancial crisis (see graph right).

Clients had only started to returnin recent months, and their business

was incredibly hard won. OswaldGrbel had a huge task in convincing

wealthy people that the bank was tobe trusted again.It is hard not to feel sorry for

Grbel, who has led the bankadmirably since 2009. In one fellswoop, much the good work done bythe UBS management team and its

bankers has been undone.

BOTTOMLINEAnalysis by David Crow

No, security can always be gotten aroundif the controls are not strict enough. I'mquite surprised that a big company likeUBS wasnt able to prevent it.

PHILIP ATKIN | CNS

No. Rogue traders are entrepreneurial by nature,they are selfish thinkers, and they look to getaround rules and regulations. UBS should beable to prevent it, though.

PAUL SMITH | INCEPTA

I would expect a large company to have an almostfoolproof system these days. I think today's newsfrom UBS is unbelievable $2bn is a stagger-ing sum of money.

PETER GODFREY | JRP UNDERWRITING

ANALYSIS l USB asset trends

2007 2008 2009 2010 2011

100

50

0

-50

-100

3500

3125

2750

2375

2000

Net new assets - CHF bi ll ion Invested assets - CHF bi ll ion

Q1

Q2Q3

Q4 Q1 Q2

Q3

Q4 Q1Q2 Q3 Q4

Q1Q2 Q3 Q4

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CITY VIEWS: ARE YOU SURPRISED THAT A ROGUE TRADER

CAN OPERATE AFTER THE FINANCIAL CRISIS? Interviews by William Turvill

* These views are those of the individuals above and not necessarily those of their company.

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Focus on UBS rogue traderCITYA.M. 16 SEPTEMBER 2011 7

JEROME KERVIELFormer Socit Gnraletrader Jerome Kerviel sen-tenced to three years inprison by a Paris court forhis role in a trading scandaland ordered to reimbursethe bank 4.9bn. The 33-year-old was found guilty ofbreach of trust, computerabuse and forgery.

AIGAmount Lost: $61.7bnAIG posted the biggest quarterlyloss in history in January 2009on asset writedowns, having

already taken $150bn in US aid.

UBSAmount Lost: $12bnUBS chairman Marcel Ospelstepped down after it posted thesubprime-related loss in the first

quarter of 2008.

CITIGROUPAmount Lost: $10bnCiti stunned markets with one ofthe first big losses of the crisis,at the end of 2007, after writing

off billions in subprime exposure. ALEXIS STENFORSFormer senior trader atMerrill Lynch in LondonAlexis Stenfors wasbanned for at least fiveyears for deliberatelyovervaluing his tradingpositions to hide his loss-es, forcing the US bank tomake a $456m write-down.

YASUO HAMANAKAJapanese trading houseSumitomo suffered a $2.6bn

loss over 10 years fromrogue copper trades, prima-rily by chief trader YasuoHamanaka. Hamanaka,whose team was believed tocontrol five per cent of theworld's copper trading, wasjailed for eight years.

NICK LEESONBarings, one of Britain'soldest investment banks,

collapsed after NickLeeson, a futures trader inSingapore, lost $1.4bn inderivatives trading.Leeson was jailed inSingapore. Barings wassubsequently sold toDutch bank ING for 1.

Institution Name Year Amount lost

Socit Gnrale Jerome Kerviel 2010 $6.8bn

Amaranth Advisors Brian Hunter 2006 $6.4bn

Sumitomo Corp Yasuo Hamanaka 2006 $2.6bn

Barings Nick Leeson 1995 $1.4bn

Daiwa Bank Toshihide Iguchi 1995 $1.1bn

Allfirst John Rusnak 2002 $691m

Merrill Lynch Alexis Stenfors 2009 $456m

Kidder Peabody Joseph Jett 1998 $350m

NAB David Bullen and Vince Ficarra 2006 $252m

MF Global Evan Dooley 2010 $141m

10 BIGGEST ROGUE TRADERS

MERRILL LYNCHAmount Lost $9.8bnMerrill lost almost $10bn at theend of 2008 after writing offmore than $16bn of subprimemortgages in the fourth quarter.

BANK OF AMERICA MLAmount Lost $8.8bnMerrills new owner fell to itsbiggest quarterly loss this Julyas it settled legal claims relatedto subprime mortgage securities.

CITIGROUPAmount Lost $7.6bnCiti features for a second timewith a loss in the final quarter of2009 as it wrote off more failedloans and repaid its US bailout.

ANALYSIS l Biggest bank losses outstrip actions of rogue traders

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Focus on UBS rogue trader8 CITYA.M. 16 SEPTEMBER 2011

BANKS spend millions of pounds andhundred of hours every year monitor-ing risk. UBS is no different, saying inits latest annual report that it hasmade a significant investment inrisk management systems.

So the news that $2bn of roguetrades had gone unnoticed will comeas something of a shock both to out-siders, and to UBSs four-strong riskcommittee. According to the report,key to the Swiss banks risk strategy inthe last year has been an investment innew IT systems to monitor risk,focused particularly in the invest-ment bank.

Richard Bentley of ProgressSoftware yesterday said pre-trade man-agement is a key area where banks

should ramp up their level of supervi-sion, particularly with so much focusfrom regulators.

Pre-trade risk management is para-mount, with trading limits specified

and checked in real-time, said Bentley.UBS has also recently hardened itsline on risk takers. The new rulesmean that those identified as risk tak-ers get extra supervision, 60 per cent ofbonuses deferred over three years, andany vesting of equity subject to theirfinancial performance. But while pin-ning down how one trader managedto sidestep controls will be the imme-diate focus in the Adoboli case, in thelonger-term scrutiny is likely to shift tohis stomping ground the murkyworld of the exchange-traded fund.

A favourite of regulators, the valueof the European ETF market is nowestimated at around $325bn, and itremains notoriously opaque.

Richard Reid of the InternationalCentre for Financial Regulation thinksthe UBS case will heighten scrutiny ofETFs, but that the risks should not beblown out of proportion.

It is probably early enough in thegrowth of these funds to be able to saythat they do not represent a truly sys-temic risk, said Reid. Although thiswill be seen as a real warning signal.

Spotlight onUBS risk rulesBY ELIZABETH FOURNIER

COMPLIANCE

SHARES in insurance broker Jardine Lloyd Thompson (JLT)jumped more than seven per cent yesterday after one of its biggestshareholders paid 166m toincrease its stake.

Conglomerate Jardine Mathesonwill buy an additional ten per centof JLT, upping its stake to 40.4 percent of the fast-growing broker.

The two companies said the deal would maintain JLTs independ-ence while adding to Mathesonsreturn on its investment.

They wanted to support the

company and we are delighted tohave them, JLT chief executive

Dominic Burke told City A.M.He said the two firms had been

in talks for about a month.We are delighted to have found

the appropriate level of sharehold-ing for them to take to ensure theyare very supportive and also leavethe company to continue creatingthe momentum it has been.

The agreed cash offer, 765p pershare, represents a 23.6 per centpremium to the companys closingprice on Wednesday night.

Jardine Matheson has been asupportive investor in JLT for manyyears, said JLT chairman GeoffreyHowe. We believe that the partialoffer reinforces Jardine Mathesonslong term commitment whilst pre-

serving JLTs independence.Panmure Gordon analyst Barrie

Cornes said it was a vote of confi-dence in the business but it willremove any bid speculation in theshare price.

Growth in Asia and Australiahelped JLT post an eight per centrise in its 2011 half-year profits to76.4m in July.

Jardine Matheson pays

166m to up JLT stakeBYELIZABETHFOURNIERANDALISONLOCK

INSURANCE

Leading the advisory team for JardineMatheson is Crispin Wright, a manag-ing director of Rothschild, who alsoadvises Lloyd's of London insuranceunderwriters Hardy, airport operatorBAA and ferry company P&O. In thepast, acting as financial adviser,Wright has fended off takeover bidsfor both currency printer De La Rue, asObethur made a 900m bid for thecompany, and Wolverhampton &Dudley Breweries as they wereapproached by Pubmaster, a challeng-ing brewery, in 2000. UBS is alsoadvising Jardine Matheson, led by TimWaddell. By William Turvill

MEET THE ADVISER

CRISPIN WRIGHT

ROTHSCHILD

ANALYSIS l Jardine Lloyd Thompson Group PLC

p

9 Sept 12 Sept 13 Sept 14 Sept 15 Sept

660

650

640

630

620

663.0015 Sept

610

JLT chief executive Dominic Burke said the deal was a vote of support

Despite being seen by insiders asincreasingly important for banks, deltaone trading desks only seem to getreported when a trader goes rogue.

So what is delta one? The namerefers to an equity flow that tracks anunderlying asset. If that security movesby one per cent when the underlying

asset moves by one per cent, or asclosely to that as possible, then it has adelta of one. Algorithmic systems canbe used in order to take profits fromarbitrage across fluctuations betweenthe asset and the derivative.

Banks offer delta one services toclients largely hedge funds with thebank providing hedging services onthese trades. As such, the delta onedesk sits between client flows and thebanks own proprietary trading. As aresult some refer to delta one as flow-prop. And it is from this position thatbanks can make big profits.

Every institution has its desk struc-tured differently depending on theirfocus. But broadly speaking, the bankscan profit from efficiency in their rolein hedging the delta one trade expo-sure.

It is estimated that for UBS to havemade a loss of this size, it would havehad to take a position of at least $10bn.By Craig Drake

WHAT IS DELTA ONE TRADING?

We understand that you

have already had to contendwith unfavourable, volatilemarkets for some time now...While the news isdistressing, it willnot change thefundamentalstrength ofour firm.- Oswald

Grbel

to staff

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The Capitalist10 CITYA.M. 16 SEPTEMBER 2011EDITED BY

HARRIET DENNYSGot A Story? Emailthecapitalist@cityam.comFollow The Capitaliston Twitter: @citycapitalist

chairman Sir Alan Thomas, Mullins(below) also cornered chancellorGeorge Osborne, where he outlinedhis best proposal for halving the

nations 2.51m unemployed.I believe that youth unemploy-

ment could be cut by 50 per cent ifthe government gave employersincentives to take on young people,he told Osborne. Like replacing job

benefits with job allowancesfor the employer that theycan put towards paying theminimum wage.

It isnt as simple as youare making out, repliedthe chancellor, blamingthe yards and yards ofred tape although heis, apparently, givingthe proposal some seri-ous thought

LIQUID LUNCHCOULD The Brasserie Bar Co becomethe next takeover target by a majorleisure group?

Core Capital, the private equityfirm that built up Loch Fyne beforeselling it on to Greene King, musthave some reason for investing 20min the group, which last monthannounced its plans to expand intopubs venture The White BrasserieCompany alongside the BrasserieBlanc restaurants, quadrupling itsnumber of UK outlets.

First things first, however: choos-ing a new head office, which is conve-niently situated opposite The KingsHead in Teddington, one of the firstsecured sites for the pubs venture.The work canteen now has a wholenew meaning, said a brewing mole.

MADE IN CHELSEA LINKIRKS TOPSHOP TYCOONA NIGHT in is inked in the diary forSir Philip Green next Monday, whenthe first episode of the new season ofMade In Chelsea airs, starring his 20- year-old daughter Chloe. I will be watching it on Monday night, ofcourse, he told The Capitalist.

The conversation took a turn forthe worse, however, when theTopshop boss (pictured far right) waspressed on the rumours he and hiswife Tina are none too happy abouttheir daughters role in the showthat documents the lives of a groupof privileged West Londoners, includ-ing the McVities heir Jamie Laing.

As one friend of the family told TheCapitalist, Lady Green feels Chloe isreally letting them down in theembarrassing project. Im not get-ting involved, said Sir Philip gruff ly, before cutting the conversation

dead. Nice to talk to you. Goodbye.

FAMILY FORTUNESCHARLIE Mullins, Britains richest

plumber, always thought the onlyway he would see inside Number 10would be on a call-out to unblock thePrime Ministers drains.

Not so the Pimlico Plumbersmanaging director was this weekinvited as a guest of David Cameronand George Osborne at a receptionfor business leaders where, to his sur-prise, he found himself seeing eye toeye with the policy makers. For onceI would say that I was drinking out ofthe same teapot [as the PM], he toldThe Capitalist.

Mullins, famously vocal on gov-ernment policy on unemployment,was encouraged by Camerons mes-sage that private sector businessesmust continue to recruit to take upthe slack from the public sector.Before the reception, I had thoughtI had 20 job vacancies, Mullins said.

But if this is the way to tackle thedeficit and turn the economyaround, I could take on 50 people.

Elbowing aside ex-M&S chairmanSir Stuart Rose and Hyder Consulting

Lady Greenfeels herdaughter is

letting thefamily downby appearingon the realityshow Madein Chelsea

London 2012

IMAGE OF THE WEEK

Boris Johnson and Frank Lowry, co-founderof the Westfield Group, open the gatewayto the Olympic Park: Westfield Stratford.

In the run-up to the 2012 Games, City A.M.

is publishing its Olympic Image of the Week.Email your photos to pictures@cityam.comwith IOW2012 in the subject line. Fulldetails: www.cityam.com/london-2012.

TEAM GB |OPENING OF WESTFIELD STRATFORD CITY

Chloe Green (above,standing centre)with Made InChelsea castmembers

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News12 CITYA.M. 16 SEPTEMBER 2011

KINGFISHER said yesterday it will cre-ate 1,200 new jobs across the UK as itsB&Q and Screwfix stores buck theretail gloom.

The DIY retailer was boosted by astrong performance in France, whereretail profits rose 24 per cent to 201min the six months to the end of July.

In the UK and Ireland profits rosesix per cent to 182m.

The company said it would also cre-ate 230 jobs to run the 29 former Focusstores it has bought, as it targetsgrowth amid the tough market.

Overall, adjusted pre-tax profit rose24 per cent to 439m while sales rose3.8 per cent to 5.6bn.

Chief executive Ian Cheshire saidthat the size of Kingfisher had helpedit to weather the bleak consumer cli-mate better than smaller rivals in theUK, where government austerity meas-ures have taken their toll on house-hold budgets.

When there is less oxygen aroundthey suffer more, he said.

The company has set a target of hav-ing half its product range common toall countries in a bid to save costs.

Meanwhile it will spend 30m a year on a team in France that willcome up with top secret products tolaunch on the market.

But Cheshire urged caution, adding:The economic situation is uncertain.

The market took well to the resultsfigures, and Kingfisher closed up 4.8per cent yesterday.

Kingfisher to

boost its UKheadcountBY JOHN DUNNE

RETAIL

ANALYST VIEWS: HOW DO KINGFISHERSRESULTS MEASURE UP? Interviews by John Dunne

PHILIP DORGAN | PANMURE GORDON

These excellent results and forecast upgrades further differentiate itsinvestment case from the rest of the land-locked, online-vulnerable, cash flow-chal-lenged retail sector. Kingfisher shares have significant upside, driven by cash gen-eration, earnings growth and expansion. We recommend a Buy.

FREDDIE GEORGE | SEYMOUR PIERCE

The stock is undervalued considering these results and the compa-nys international spread of activities. We raised our recommendation on theretailer to buy from hold and have increased our full-year earnings estimate.

NICK BUBB | ARDEN PARTNERS

Smashed expectations and in line for a full year profits upgrade. Thingsare coming together with common sourcing. Its a fantastic, focused recovery. Ithas a strong balance sheet and is well placed. The performance in France has been

strong despite the tough backdrop.

Chief executive IanCheshire hopes tocreate more than1,400 jobs as partof its expansionplans and overhaulof the Focus DIYshops it bought

NEWS | IN BRIEF

Dunelm profits and revenues riseHomewares retailer Dunelm said it wassatisfied with its performance for theyear in a tough operating environmentfor non-food retailers and raised its finaldividend by 60 per cent. The group,which runs more than 100 mostly out-of-town stores, reported a nine per cent

increase in total revenue, but like-for-likesales fell by less than a per cent. For theyear to 2 July, Dunelm posted a nine percent rise in pre-tax profit to 83.6m assales at shops open over a year greweight per cent. Revenue for the year was538.5m.

Johnston board buy up sharesAll the non-executive directors atJohnston Press bought tens of thousandsof shares each yesterday at above-mar-ket prices. Chairman Ian Russell, who

bought more than 248,000 shares at 5peach, and senior independent directorMark Pain who bought 81,000, wereamong the six directors splashing out onstakes in the troubled media group.Shares in Johnston Press closed down1.88 per cent at 4.71p yesterday.

BNP ParibasIn our articled dated 15 September, wesuggested that BNP Paribas planned toexit investment banking in the UK,Hungary and Switzerland. This wasincorrect. The bank is only consideringpulling out of its much smaller equipmentleasing business in these countries. Wealso suggested it planned to reduce itsinvestment bank funding needs by 60bnbefore the end of the year. The correctfigure is $60bn or 44bn. We would liketo apologise for both errors.

ANALYSIS l Kingfisher

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KESA yesterday reaffirmed that it waspushing ahead with its Cometrevamp plan yesterday as sales againtumbled.

The electrical goods retailer said itwas keeping its options open, includ-ing a possible sale of the strugglingchain.

The Comet turnaround plan isunderway while continuing to exam-ine other strategic alternatives, thefirm said. In June Kesa said it waslooking at a range of options forComet, including a disposal or forma-tion of a joint venture, while pressingahead with a turnaround plan thatincluded selling weaker shops andfocussing on profitable ranges likesmall appliances.

Kesa yesterday also posted a furtherdeterioration in trading at Comet forthe three months to 31 July.

Sales at Comet stores open over ayear slumped 22.1 per cent, althoughgross margin increased 80 basispoints.

The sales decline was in line withanalyst forecasts of a fall of 18-25 percent and partly reflected a tough

World Cup football comparative withthe same period last year. Like-for-likesales at the groups Darty business inFrance fell 3.7 per cent, better thananalyst forecasts.

Kesa hit asComet salesfall yet againBY JOHN DUNNE

RETAIL

Britains biggest cash and carry wholesaler Booker reported a sharprise in second quarter sales, boosted

by strong demand for fresh fruit andvegetables.

The firm, which has over 170 branches supplying retailers andcatering firms, said yesterday its totalsales rose by 7.6 per cent in the 12

weeks to 9 September.

Sales at shops open more than ayear were up 5.6 per cent during theperiod with non-tobacco sales rising4.5 per cent and tobacco sales up 7.6per cent. Sales of fruit and vegetables

were up 34 per cent.Booker chief executive Charles

Wilson said the company hadimproved prices and services.Customers have rewarded us withan increased share of their spend, he

said in a statement.

Booker takings rise on increaseddemand for fresh fruit and vegRETAIL

DIRECTORIES publisher Yell Groupyesterday said it signed an agreement with cloud computing firmNetbiscuits to develop an applicationthat will allow customers to accessonline shopping and other sites onmobile devices.

Yells shares, which have plummet-ed by nearly three-quarters over thepast year, were up 13 per cent after

the announcement.Local entrepreneurs and businessoperators will be able to extend theirdigital marketing and commercialactivities by offering customers newmobile services and experiences,regardless of the platform or device,the company said.

Yell, which has tie-ups with compa-nies like Microsoft, also said itexpects to sign additional partner-ships to further develop its onlinemarketing platform.

The company, whose net debtstands at 2.7bn against a market cap-italisation of about 103m, said it didnot expect to breach any of itscovenants this financial year.

Yell held an investor day yesterdayto draw attention to progress it ismaking with Microsoft branding itan exciting new strategy aimed attransforming the Group into being aleader in the emerging localeMarketplace for consumers andsmall and medium enterprises.

Yell to develop shopping appswith new partner NetbiscuitsBY JOHN DUNNEMEDIA

H&M SALES BEAT FORECASTS

Swedish budget fashion group Hennes & Mauritz yesterday reported sales for Augustthat smashed worries that gloomy consumer sentiment would dent appetite for newclothes. Total sales were up eight per cent against analysts expectations of 2.3 per cent.

Turnover in the June-August quarter was 26.9bn crowns (3.17bn) excluding VAT.

News 13CITYA.M. 16 SEPTEMBER 2011

ANALYSIS l Kesa

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94

92

90

88

86

91.6015 Sept

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CENTAUR, the B2B publishing andexhibitions business, yesterdayposted improved full-year resultsthanks to cost-cutting but stillbooked a loss on writedowns andredundancy payoffs.

Revenue rose 14 per cent to68.3m for the year to the 30 June,and adjusted EBITDA increased 50per cent to 9.9m. But the companyposted a pre-tax loss of 30.3m fol-lowing a 32.2m non-cash impair-ment charge and exceptional costsof 3.4m relating to redundancies.

In July, Centaur announced arestructuring to streamline thebusiness into the three divisions ofbusiness publishing, business infor-

mation and exhibitions.The restructuring has put us in

a much stronger place, saidCentaur boss Geoff Wilmot, whoexpects future growth to comefrom events such as MarketingWeek Live, where revenues rose 26per cent, and from digital productssuch as Perfect Information, a busi-ness tool for investment bankersand corporate lawyers.

Digital revenues rose 19 per centto account for 26 per cent ofCentaurs total revenues.

Trade magazines New Media Ageand Design Week became online-only brands as part of the cost-sav-ing measures, while LogisticsManager, ABC&D and ProcessEngineering have been sold, withtalks underway to find a buyer for

Recruiter magazine.But Wilmot said the publishers

eight remaining print titles, whichinclude The Lawyer and MarketingWeek, will remain print brands aslong as there is a demand for paperproducts as part of a wider portfo-lio of other media.

Restructuring cutslosses for CentaurBYHARRIET DENNYS

MEDIA

EDUCATION and publishinggroup Pearson is to spend $400m(252m) to acquire a US-basedfirm which runs virtual publicschools serving more than40,000 students who chose notto attend traditional schools.

Pearson, which is growingstrongly in its education divi-sion, said the virtual schoolswere accredited and funded bythe relevant states and were free

to parents and students. The acquisition of

Connections Education alsogives Pearson the opportunity toapply the virtual skills and tech-nologies to new segments andgeographies within its business.

Pearson said ConnectionsEducation had produced rev-enue growth of more than 30per cent in each of the past three years and expects to generaterevenues of around $190m in2011.

Pearson expects the deal toenhance adjusted earnings per

share from 2012, its first fullyear, including integration costs.

Pearson expands with a252m Connections buyMEDIA

News14 CITYA.M. 16 SEPTEMBER 2011

MELTDOWN MONDAY THREE YEARS ON: THE EVENTS OF 15 SEPTEMBER 2008

ANALYSIS l Centaur Media

p38.50

37.50

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38.0015 Sept

BERNANKE LOOSENS LENDING RESTRICTIONSIn the early hours of Monday 15 September, 2008,Federal Reserve chairman Ben Bernanke (right)expands short-term lending to banks by taking allinvestment-grade debt as collateral, instead of just

T-bills and other high-grade securities.

LEHMAN BROTHERS FILES FOR CHAPTER 11Just after midnight in New York, Lehman Brothers files

for bankruptcy under Chapter 11 with the USBankruptcy Court for the Southern District of New York

LEHMAN EMPLOYEESCLEAR THEIR DESKSBankers at LehmanBrothers, which had26,000 employees at theend of June 2008, beganclearing their desks onMonday morning (left)

BUSH ATTEMPTS TO CALM INVESTORSSpeaking in the Rose Garden at the WhiteHouse, US President George W Bush (right)acknowledged that markets were in turmoil,and sought to calm investors by saying: Weare working to reduce disruptions and min-imise the impact on the [broader economy].

BANK OF AMERICA BUYSMERRILL LYNCHAfter talks for Bank of Americato buy Lehman fall through, itannounces an agreement toacquire Merrill Lynch for up to50bn. "It didn't take but twoseconds to see the strategicimplications, the positive implica-tions," said BofA chief executive

Ken Lewis (left) at the time.

FTSE LOSES 200POINTSThe FTSE 100 lost over200 points, closing 3.92per cent down on thedays session. It lost 4.5per cent by midday butthen rallied slightlyfrom a low of 5,124 toclose at 5,204.

AIG LOOKS FOR CASH TO AVOID DOWNGRADEInsurance giant American International Group races toraise cash in order to avoid credit rating downgrades.Shares of the firm lost close to two-thirds of theirvalue during trading as the market nervously waitedfor the company to announce a restructuring plan.The US federal government asks Goldman Sachs andJPMorgan Chase to head up a $70-$75bn lending poolfor the troubled company.

THE STEPS WE ARE ANNOUNCING TODAY, ALONGWITH SIGNIFICANT COMMITMENTS FROM THEPRIVATE SECTOR, ARE INTENDED TO MITIGATETHE POTENTIAL RISKS AND DISRUPTIONS TOMARKETS -- BEN BERNANKE, FED CHAIRMAN

Eircom winsheadroom onbank covenants

LENDERS to struggling Irish telecomsgroup eircom have agreed to waive itsdebt covenants, averting a possibledefault on 3.8bn (3.3bn) of debt, thecompany said yesterday.

The waiver, which lasts until 15December, provides a necessary peri-od of stability that allows restructur-ing discussions to take place duringthe next three months, eircom Groupchief executive Paul Donovan said.

A source with direct knowledge of

the vote said lenders had agreed to thewaiver in an unanimous vote.

MEDIA

I NEVER ONCE CONSIDERED THAT ITWAS APPROPRIATE TO PUT TAXPAYERMONEY ON THE LINE WHEN IT CAME TOLEHMAN BROTHERS -- HENRY PAULSON,TREASURY SECRETARY

ON 15 September 2008, global markets werethrown into panic mode as US investmentbank Lehman Brothers filed for bankruptcyafter failing to secure a rescue sale.

The announcement kicked off a day ofunprecedented corporate chaos in the US by late morning, Bank of America had

agreed to buy struggling Merrill Lynch, andthe Fed has asked the rest of the US bankcommunity to shore up AIG to the tune of$70bn. Three years on, we look back at theevents that shaped meltdown Monday.

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CONSTRUCTION firm Kiers sharesrose almost six per cent yesterday afterit posted better than expected profits,helped by a shift away from public sec-tor work as budgets come under pres-sure.

Britains third largest contractorsaid underlying pre-tax profits for theyear to June rose 24 per cent to 68.9mcompared with 55.5m the previousyear, on revenues up four per cent to2.2bn.

The group cut its exposure to thepublic sector to 56 per cent from 75per cent in 2010 as it shifts its focustowards private sector projects.

We are encouraged by theprospects we see in markets such aspower and waste, in mixed?use regen-

eration and in the growth we see inpublic sector outsourcing, chief exec-utive Paul Sheffield said.

In a separate statement, Kierannounced a it had won a four-yearcontract worth up to 1bn from Scape,a local government-controlled firm.

The group declared a 10 per centhike in its dividend to 64p per share.

Kier sees liftin profits andups dividend

GATWICK Express passengers couldbe facing ongoing disruptions, afterit was announced that rail workerson the line are to be balloted forindustrial action in response to thethreat of job cuts.

The Rail, Maritime and Transport(RMT) union has confirmed that it isprepared to lead its members tostrike action in response to theincreased automation of ticket gateson the line.

The union said that it is concernedthat, with planned ticket gate addi-

tions at both Gatwick and Victoriastation terminals, worker redundan-cies will follow.

Bob Crow, general secretary forRMT, has said that the union will doeverything in its power to ensurethat members jobs are defended atSouthern Railway, the company which owns and operates theGatwick Express.

Responding to the unionsannouncement, Southern said it wascontractually committed to gatingGatwick Express platforms at bothstations as part of its franchise forthe service.

Cobham swoops on USantenna firm for $126m

AEROSPACE and defence companyCobham has agreed to buy US satel-lite antenna manufacturer Trivec- Avant Corporation in a deal worth$126m (80m).

Cobham said the all-cash deal, which includes possible bonus pay-ments of up to $18m between 2013and 2014, is expected to be completedin the fourth quarter of this year.

The acquisition of Trivec-AvantCorporation brings us a range of SAT-COM antenna products and commu-nication related technologies that arehighly complementary to our exist-

ing business, Andy Stevens, chiefexecutive of Cobham, said in a state-ment.

Cobham, which generates aroundhalf of its revenues from the US, sawfirst half revenues drop seven percent as it suffered from a decline inUS defence contracts and increasedcompetition.

Trivec, based in California, makesadvanced antenna systems for US andforeign militaries.

The deal will help boost theCobhams world-leading antennasbusiness and increase investment inhighly differentiated technology,the group said.

Gatwick Expressfaces strike action

BYKASMIRA JEFFORD

CONSTRUCTION

SHARES in Kazakhstan-focused MaxPetroleum edged up yesterday after itannounced that it expects to startdrilling a well on the Emba Bprospect by the end of October at thelatest.

Max closed up 1.67 per cent to15.25p on the alternative investmentmarket last night as it announced itis preparing to receive a deep drillingrig for its deep salt drill pro-gramme on the Emba B prospect inKazakhstan, which analysts currentlyvalue at $610m (386m).

Max Petroleumto start drillingat Kazakh well

TRANSPORT

ENERGY

DEFENCE

News16 CITYA.M. 16 SEPTEMBER 2011

NEWS | IN BRIEF

Goldman Sachs adds brokershipInvestment bank Goldman Sachs wonanother broking mandate yesterday.CSR, the FTSE 250-listed provider of sil-icon and software solutions, appointedGoldman Sachs as its new joint brokeralongside JP Morgan Cazenove. Sincehiring Phil Shelley from UBS, Goldman

Sachs has been pursuing new clientsboth within the FTSE 100 and just out-side it.

Pursuit Dynamics wins contractFluid technology firm Pursuit Dynamicssaid yesterday that it had won a400,000 contract to supply its PDXfood system to one of Europes leadingfood producers, sending its shares up bymore than seven per cent. The companysaid that revenue from the venturewould be seen in stages over the nextthree months, with the contract demon-strating the growing strength of PDXsoffering in the food and beverage sec-tor. Though the name of the client wasnot revealed, Pursuit said it was areturning customer.

HandelsbankenIn a table dated 13 September, we saidthat the five year senior CDS figure for

Handelsbanken was 194.15 basis points.This was incorrect. Handelsbanken'sfive year CDS figures on 8 and 12September were 108bps and 110bpsrespectively, meaning it has amongstthe lowest of the major banks. Wewould like to apologise for the error.

RIO TINTO will spend a further $833m(527m) to speed up its iron ore expan-sion plans in Western Australia's

Pilbara region, the mining giantannounced yesterday.

The extra spending adds to a $15bn-plus project to increase its capacity inthe mineral-rich region by 50 per centto 330m tonnes a year by 2015.

The Anglo-Australian company said

$520m of the investment would bespent on upgrading the miners powerand gas networks, while $313m wasearmarked for fuel infrastructure facil-ities.

These projects provide certainty in

meeting our power and fuel supplyrequirements, both now and into thefuture, Sam Walsh, chief executive ofRio Tinto Australia, said.

Other iron ore producers includingFortescue Metals have also stepped upexpansion in the Pilbara region.

Rio Tinto boosts iron oreexpansion in Australia

Iron ore producers are heavily investing in the mineral-rich Pilbara region

BYKASMIRA JEFFORD

MINING

ANALYSIS l Kier

p1,200

1,160

1,120

9 Sept 12 Sept 13 Sept 14 Sept 15 Sept

1,189.0015 Sept

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17/40

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THE BANK of England (BoE) mayexpect consumer price index (CPI)inflation to come down next year, butconsumers themselves do not agree and are increasingly dissatisfied withthe Banks ability to control prices.

Inflation of 4.2 per cent over thenext year is expected according to anaverage of the surveys responses,taken in August. That is up on the 3.9per cent expectations in May.

Longer-term expectations increasedtoo, with respondents anticipatinginflation of 3.5 per cent in the follow-ing 12 months, up from the 3.2 percent predicted three months earlier.Expectations of inflation even furtherahead considered to be five years inthe future are up to 3.5 per cent from3.3 per cent in May.

Net satisfaction with the Banks per-formance fell from 22 per cent to just16 per cent levels last seen in 2009.

Respondents believe inflation is cur-rently running at 4.8 per cent, com-pared with the latest CPI figure of anannual 4.6 per cent, while the retailprice index (RPI) often seen as amore accurate measure of living costsbecause it includes housing rose at

5.2 per cent over the year.This suggests respondents think the

RPI measure reflects their spendinghabits more closely than the CPI.

BoE forecasts anticipate CPI infla-tion falling to closer to its two per centtarget in 2012 and 2013, with aneven chance of falling below target.

However, high inflation expecta-tions can push inflation itself higherthrough, for example, increasing wagedemands. That may make further QEfrom the MPC less likely, say analysts.

The hawkish members of the MPCare likely to be very uncomfortableabout launching QE2 right now, saidNomuras Philip Rush. The MPC risksdoing serious damage to its credibility,causing an even longer and largerovershoot of its inflation target.

EMPLOYMENT growth accelerated inthe Eurozone in the second quarter,Eurostat announced yesterday, but theEuropean Commission (EC) cut itsgrowth forecasts for the rest of 2011.

Official figures point to a 0.3 percent increase in Eurozone employ-ment in the three months from Aprilto June, while the 27 EU nations as a

whole enjoyed a 0.2 per cent increasein jobs over the period.

That is an acceleration from the 0.1per cent growth seen in the first quar-ter in both groups.

Compared with the same period in2010, employment was 0.4 per centhigher in the Eurozone and 0.3 percent higher in the EU27.

That growth is not expected to last,however. Based on analysis of thelargest seven member states, the EChas revised its GDP growth estimatesfor quarters three and four down to

0.2 per cent in each. That is a fall of0.2 and 0.3 percentage points respec-

tively. Analysts worry the gloomier out-

look will impact on jobs.Unfortunately, the Eurozone econ-

omy has taken a marked turn for theworse in recent months and businessconfidence has weakened apprecia-bly, and this will undoubtedly impacton labour markets, said HowardArcher from IHS Global Insight.

Eurozone consumer price indexinflation in the year to August

remained at 2.5 per cent, unchangedfrom Julys figure.

Fastest Eurozone jobs gain since 2008could be halted by weaker economies

MONTHLY rents have grown for theseventh month in a row, according tofigures out today from LSL PropertyServices buy-to-let index.

Londons rents increased by 1.5 percent on average last month comparedwith July, hitting new highs of 1,025per month. That compares with pricesof 713 across England and Wales, which went up 1.2 per cent over

August.Rent in the capital has increased by

6.6 per cent over the year to August equivalent to a 63 per month hike.

Landlords can expect growingreturns on properties, according to LSLProperty Services director DavidNewnes.

With house prices in the capitaloutperforming the rest of the UK, theaverage London landlord would havemade a total annual return of nearly15,000 in August, he said.

Arrears increased in August, howev-

er, with 10.7 per cent of UK rentunpaid or paid late.

Londons soaring rentsboost landlords returns

HOUSING

A MEASURE of financial misery is upin the US, according to figures out yesterday showing unemploymentand inflation on the rise.

Annual Consumer Price Index (CPI)inflation increased to 3.8 per cent.That figure is added to the unemploy-ment statistics currently 9.1 percent to create the misery index,which now stands at 12.9, its highestsince the 1980s.

Manufacturing fell in New Yorkstate for the fourth consecutivemonth, according to the Feds empirestate manufacturing index, out yes-terday. The general business condi-tions index edged down from -8.7 to-8.8, as shipments and inventoriesboth plummeted.

Better news came from Augustsindustrial production statistics,which were also released yesterday bythe Fed. Output increased 0.2 percent month-on-month, adding toJulys rise of 0.9 per cent. In the yearto August, it increased by 3.4 percent.

However, that is not enough tobrighten the overall picture, say ana-lysts.

Prices are rising faster thanexpected and output growth is mini-mal, which highlights the spectre ofstagflation in the worlds largesteconomy, and investors know it, saidBenjamin Wilson from the Centre forEconomics and Business Research.

UnhappyStates as

prices riseUS ECONOMY

LOW WAGES may have been the foun-dation of Chinas economic boom,but its competitive advantage in thespace is disappearing, according to areport from KPMG out yesterday.

Other south and south-east Asiancountries like Bangladesh andIndonesia are now significantlycheaper locations for manufacturingactivities.

After years of high growth, wageshave increased a development

encouraged by the government,which seeks to boost the minimum

wage as part of its 12th five year plan. The consultancys study alsreports that Indonesian footwearexports increased by 42 per cent in2010, topping $2bn.

Sourcing goods in China purelybecause of ultra-low costs is a thing ofthe past, KPMGs Nick Debnam said.But it is going to be impossible toavoid the challenge of rising wagesentirely wherever you are in theregion.

China loses competitiveedge as its wages climb

ASIAN ECONOMYNO GROWTH in retail sales by volume

was registered in August year-on-year,

the Office for National Statisticsannounced yesterday.Sales fell over the month, losing 0.2

per cent on Julys volumes.Internet sales were up and now

account for 9.6 per cent of the mar-ket. That compares with 8.1 per centin July, and 7.1 per cent in August2010.

The previous peak for online shop-ping came in December of last yearwhen 9.1 per cent of purchases were

made over the internet.Overall, sales of household goods

plummeted 4.1 per cent by volumecompared with August last year,whilst petrol sales increased 1.6 per

cent, year-on-year.Analysts believe inflation is takingits toll on shoppers. Even thoughsales volumes stayed static, sales byvalue increased by 4.7 per cent com-pared with August of last year.

High inflation is killing off anyhope of a recovery on the high street,said Samuel Tombs from CapitalEconomics. With consumer confi-dence at exceptionally low levels,house prices starting to fall again and

high inflation eroding real earnings,the downturn on the high streetseems likely to intensify in the com-ing months.

That brings more worries for the

state of the wider economy, too.As consumer spending accountsfor roughly two-thirds of gross domes-tic product, there is therefore astrong chance that the economycould stagnate or even contract again before the end of the year, saidMarkits Chris Williamson. However,with inflation likely to fall next yearthe squeeze on incomes should ease,so the longer-term outlook is perhapsa little brighter.

Retail sales fail to improveBY TIMWALLACE

RETAIL

Shoppers lose

faith in MPCshold on pricesBY TIMWALLACE

UK ECONOMY

BY TIMWALLACE

EUROZONE ECONOMY

OECD BOSS CALLS FOR JOBS BOOST

High unemployment is the human face of the crisis, said OECD secretary general AngelGurria, launching the bodys Employment Outlook 2011 report. Warning that highunemployment could easily become entrenched, he called for governments across the richworld to take action, whilst continuing with their fiscal adjustments: Hiring subsidiescan be a cost effective way to boost job creation in the short run.. Picture: GETTY

ANALYSIS l Inflation expectations

% Inflation experiencedover last 12 months

Inflationexpectationsover next12 months

Inflationexpectationsin longer term

Feb 2010 Jun 10 Oct 10 Apr 2011 Jun 11

6

5

4

3

2

1

0

News18 CITYA.M. 16 SEPTEMBER 2011

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Independent Trustee ServicesMartine Trouard-Riolle has beenappointed as a director of ITS. Trouard-

Riolle started her career as an insolven-cy lawyer before joining the PensionsRegulator, where she was head of cor-

porate risk management, with responsi-bility for the clearance and anti-avoid-ance teams.

RCMThe asset manager within AllianzGlobal Investors has appointed Melissa

Gallagher as director, head of invest-ment trusts. Gallagher was mostrecently head of investment trusts atGartmore Investment Management,where she worked for ten years.

VMA GroupNina Arnott has joined the executiverecruiter to lead the firms executivecommunications practice across the

firms London and Manchester offices.Arnott was most recently interimEuropean director of communicationsfor McDonalds.

Brooks MacdonaldThe Aim-listed integrated wealth man-

agement group has hired DianeSeymour-Williams as a non-executivedirector, with immediate effect.Seymour-Williams is currently an exec-utive director of the investment manag-er Lloyd George Management.

Bibby Financial ServicesThe invoice finance specialist has hiredElias Violaris as business development

manager, based in i ts Moorgate office.Violaris joins from NatWest, where hewas specialist relationship manager.

Home Retail GroupClare Askem, formerly director of strate-gic development for Home Retail Group,

has been appointed as managing direc-tor of Habitat, following the furnishingbrands acquisition by HRG in June.

Alstom TransportTerence Watson has been promoted toMD of the firms UK and Ireland busi-ness. Watson moves from the companysParis office, where he led the EuropeanRegion for the International Network.

CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys

BlackRockAmra Balic has joined the asset manager as theEMEA head of corporate governance andresponsible investment. Balic joins BlackRockfrom Standard & Poors, where she was a direc-tor in European Corporate Credit Ratings,

responsible for corporate governance into thecredit ratings process. Prior to joining S&PsCorporate Governance Services team in 2000,Balic was a financial analyst at the EuropeanBank for Reconstruction and Development.

+44 (0)20 7557 7245morganmckinley.com

To appear in CITYMOVESplease email your careerupdates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

in association with

Fourth straight dayof wins on Wall St

INVESTORS pushed US stockshigher for a fourth day yesterdayas coordinated central bankaction encouraged optimism

about dealing with the Eurozonedebt crisis and its threat to the glob-al recovery.

Major stock indices rose morethan one per cent. Shares of finan-cial companies, which have beenamong the hardest hit by the debtworries, outperformed other sectors.

The S&P financial index and theS&P industrial index each rose 1.8per cent.

Shares of Bank of America rosefour per cent to $7.32. GeneralElectric gained three per cent to$16.09.

The European Central Bank, alongwith other major central banks, willreintroduce three-month dollar liq-uidity operations in the fourth quar-ter.

The move benefited the Europeanbanking system, which experiencednew stress in finding dollar fundsdue to nervousness by lenders.

The bottom line is the EU and theIMF and the industrialised nations

are trying to convince the marketthat the euro is here to stay, euro

land is not going to disintegrate andGreece is probably going to avoid adefault, said Peter Cardillo, chiefmarket economist at RockwellGlobal Capital in New York.

The Dow Jones industrial average was up 149.21 points, or 1.33 percent, at 11,395.94. The Standard &Poors 500 Index was up 15.81 points,or 1.33 per cent, at 1,204.49. TheNasdaq Composite Index was up28.38 points, or 1.10 per cent, at2,600.93.

Worries about a Greek defaulthave plagued the stock market for

weeks. While the S&P 500 index is stilldown 10 per cent since 22 July, thebroad gauge has managed a 4.3 per-cent gain so far this week.

Advancers were leading decliners by about three to one on the NewYork Stock Exchange.

Optimism over containing thedebt crisis came even as GermanChancellor Angela Merkel rejectedthe idea of Eurozone bonds as a solu-tion.

A top official said he expectslenders to recommend the release ofa vital next tranche of aid to Greece,warding off the threat of an immi-nent default.

Gold fell two per cent to three- week lows, as increasing efforts tocontain the European debt crisisfueled another volatile session, fur-ther diminishing bullions appeal as

a safe haven. Prices slid below $1,800an ounce.

BRITAINS leading shares rose

yesterday after politicians andcentral bankers moved toshore up market confidence

in the debt-ravaged Eurozone, withthe FTSE 100 index breaking abovean eight-week technical downtrend.

The FTSE 100 ended up 2.1 per

cent, or 110.52 points, at 5,337.54,extending the rally into a thirdstraight day.

Fresh support from France andGermany for Greece overnight, as itlooks to implement austerity cutsand secure fresh bailout funds,sparked early gains.

These were added to during theafternoon after the US FederalReserve and other central banksagreed to conduct three-month USdollar loans to banks in the finalquarter of 2011 to counter any fund-ing squeeze.

The coordinated action was animportant short-term measuregiven the hazardous pace at whichfunding market conditions hadbeen deteriorating in recent weeks,said Michael Symonds, financialsanalyst at Daiwa Capital Markets.

British banks had not been under

the same pressure as Europeanpeers looking to secure dollar fund-

ing, but would nonetheless benefitfrom the improved counterpartylending environment within theEurozone, he said.

Lenders were among those addingmost points to the FTSE 100 index,with Lloyds Banking Group thestandout gainer, up 7.2 per cent in volume about 1.5 times its 90-dayaverage.

Other lenders including StandardChartered, Barclays and HSBC rosestrongly, by around four per cent,and the sector was also supported bya bullish Nomura note.

Banks were discounting forceddilutive capital raisings and/or hitsto book value from increasedimpairments, the broker said, andthough it did not rule out capitalraisings, it believed they would growcapital ratios organically.

While the central bank actiongave a boost to lenders, it did littleto address the broader concern ofbank solvency and debt sustainabili-ty, Symonds said.

This is about central banks buy-ing time for politicians to hopefullyallow them to get ahead of the sover-eign crisis.

In addition to fresh support fromFrance and Germany overnight, theEuropean Unions top economicofficial said international lenders would likely green light the nexttranche of aid to Athens.

While equity markets used the

news as an excuse to move higher,Greek credit default swaps still

showed more than a 90 percentchance that Greece could default,according to Reuters calculations ofMarkit data.

The days gain left the market justbelow an intermediate peak, from 8September, at 5,369.82 which wasimportant, Bill McNamara, techni-cal analyst at Charles Stanley said.

It also roughly coincides withthe intermediate highs that were hitin the middle of August. So there isa chance of a bit of residual resist-ance at current levels or slightlyhigher, at about 5,380.

If that level was exceeded, thenext logical move would be for it totest the 1 September high when itcame within spitting distance of5,450, while a 61.8 per centFibonnacci retracement from theJuly high to the August low wouldthen leave a target of 5,600.

That level is reinforced as a keypoint for the FTSE as it was criticallow for the FTSE back in March,McNamara said.

FTSE extends gains after abullish note boosts the banksTHELONDONREPORT

THENEW YORKREPORT

20 Jun 08 Jul 28 Jul 7 Sep17 Aug

6,200

5,400

5,000

5,800

ANALYSIS l FTSE

5337.5415 Sept

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS lFenner

425

375

275

325

Jul Aug Sep

p360.00

15 Sept

FENNERCitigroup rates the engineer buy / high risk with a target price of 478p. Thebroker thinks Fenners recent end of year statement suggested trading hadbeen ahead of expectations, with strength in both its mining conveyor beltand advance engineering divisions. Citi has upgraded its 2011 earnings pershare forecasts by seven per cent its fourth such upgrade since the start ofthe year, and representative of a year on year growth rate of 62 per cent.

ANALYSIS lBritish American Tobacco

2,900

2,700

2,500

Jul Aug Sep

p

2,755.5015 Sept

BRITISH AMERICAN TOBACCOJP Morgan Cazenove rates the tobacco group overweight. The brokerreports an upbeat sentiment at the firm following a presentation by itssales team and that earnings per share should grow in high single digitsover the medium term. Volume trends have continued to improve, and JPMorgan expects the group to follow rivals in raising prices in Spain in duecourse.

ANALYSIS lGlaxoSmithKline

1,350

1,250

Jul Aug Sep

p1,292.50

15 Sept

GLAXOSMITHKLINEGoldman Sachs rates the pharmaceutical group sell with a target price of11.30. The broker expects sales volumes for the firms Advair drug to con-tinue falling, leading to a five per cent fall this year. The cornerstone drug isfacing headwinds on several fronts, Goldman adds, with generic rivalsexpected in the next six to nine months and a broader switch in the USaway from long-acting products.

News 19CITYA.M. 16 SEPTEMBER 2011

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Living | Dream property GARY OLDMANIN TINKER TAILORSOLDIER SPY, PAGE 33

Award-winningcity penthouseThis beautiful development in Shoreditch is atruly enviable place to live, says Zoe Strimpel

FOR sale by the buildings architects,the couple Patrick Theis and SorayaKahn, the penthouse in this extraordi-narily elegant, intelligent develop-

ment in Shoreditch is a prime andprestigious choice for anyone working inthe City. The building designed to be bothfor working and living has won several

awards and was short-listed for the highlyprestigious Royal Institute of British

Architects (RIBA) Stirling Prize 2010, andwent on to win RIBA Building of the Year2010.

The property also won the HackneyCouncil Design Awards 2010, with the

judges opining that this ingenious mixed-used development combines quirky fea-tures with fine attention to detail.Batemans Rows modest, yet stunning,

faade conceals an intricate, geometric puz-zle within.

The defining feature of this penthouse islight and elegance of line. The sense ofspace and light is maximised through theuse of plate glass, exposed concrete andneat lines. Plus, it has that most coveted ofLondon attributes: views, in this case, daz-

zling ones of the City. The penthouse haslots of open space, and a garage and privatelift.

Being in the heart of Shoreditch not onlyguarantees an incredibly easy commute to

work (even if you work outside the City,Liverpool Street and Old Street are nearby

with numerous rail and Tube connections),it also ensures youre smack bang in themiddle of some of Londons best culturalofferings and exciting restaurants.

The stunning, award-winning Batemans Row pent-house apartment is for sale through Foxtons, for2.95m. Foxtons Shoreditch, 020 7033 1414.www.foxtons.com

21

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Living | Home Counties22 CITYA.M. 16 SEPTEMBER 2011

Call: 0800 883 8823

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