04 April 2011
Glencore‟s $14 million bonuses for traders leave banks in shade: Glencore
paid its senior traders more than $900 million in bonuses last year, giving
them an estimated average pay-out of $14 million each, dwarfing most City
bonuses. The Swiss commodities trader is understood to have told its
bondholders that the basic pay of senior staff totalled $146 million (£90
million) last year, with a further $938 million paid in bonuses.
Tesco to sell second-hand fleet cars online: Tesco is taking its business from
the supermarket aisles to the motor trade with the launch of its own second-
hand car dealership. Tescocars.com is selling former business fleet and rental
cars directly to customers shopping online. It hopes to grab a slice of a market
said to be worth £24 billion each year in Britain.
Japanese parts shortage threatens Honda in Swindon: Honda has drawn up
plans to halt production at its factory in Swindon as the economic aftershocks
of Japan‟s devastating earthquake and tsunami begin to reach Britain. The
Japanese carmaker has been hit by a parts shortage, including sat-navs and
essential electronic components.
The art of being seen to do the right thing: There was a time when Derek
Sach would come into the office to find his overnight inbox deluged by e-
mails from irate Liverpool fans.
RBS may be set to reduce government stake: Royal Bank of Scotland, which
almost collapsed in 2008 under the weight of bad loans, is ahead of the
timetable it set itself in its 2009 turnaround plan to shed billions of pounds of
impaired loans and other underperforming or peripheral businesses.
Private equity lowers sights to pick off deals: Private equity firms are
ploughing cash into lower-value deals in an attempt to create returns for their
investors. The latest management buyout research from KPMG indicates a
doubling of deals in the first quarter, in which funding exceeded £10 million.
BBC gains cash boost from the royal wedding: Excitement over the royal
wedding is spreading across the world as international broadcasters snap up
British documentaries on the engagement of Prince William to Kate
Channel 4 to stand by Frankie Boyle over blind child gag: Channel 4 is
preparing to defy the broadcasting regulator by refusing to accept a ruling
that a joke by the comedian Frankie Boyle about the disabled son of a
Manoj Ladwa 0207 392 1487 glamour model should never have been aired.
Index and Equity Desk 0207 392 1479 Family hatchbacks? Try aisle 22 at Tesco: In this week‟s online shopping
Institutional Equities 0207 392 1477 basket: eight litres of organic semi-skimmed, four skinless chicken breasts and
Commodities 0207 392 1403 a Volvo C70 Convertible.
Options 0207 392 1472
Currencies 0207 392 1455
Internet Dealing Desk 0207 392 1434
We are also available on:
Face twi Lin You App
ETX Capital, Beaufort House, 15 St Botolph Street, London EC3A 7DT Tel+44 (0) 207 392 1453
email@example.com www.etxcapital.com Refer to the last page for disclaimer
04 April 2011
02: white elephant that became a moneymaker: The O2 concert venue, seen
by many as a white elephant when it was created as the Millennium Dome, is
pumping £405 million into London‟s economy each year. AEG Europe, which
owns the site on the Thames‟ southern bank, said that it had attracted up to
7.2 million visitors a year, more than the number of tourists going to Australia
Alchemy fund eyes distressed companies: Buy-out group Alchemy has raised
the largest fund to target financially troubled European companies since the
financial crisis. The move will tap into demand from investors anticipating
new opportunities as the region‟s banks offload assets to deflate their vast
Oil price rises will hit road repairs: The U.K. will struggle to foot the bill of
repairing its weather-damaged road network as soaring oil costs spark
concerns about the price of building materials.
Ronson targets U.K. petrol stations: A consortium of investors that includes
veteran property developer Gerald Ronson has entered exclusive talks to buy
about 800 U.K. petrol stations from Total – or almost 10% of the market.
Cameron wades in over NHS reforms: David Cameron is to take over the
selling of the government‟s NHS reforms, in effect sidelining his health
secretary Andrew Lansley, while ensuring that Nick Clegg, the Liberal
Democrat leader, remains tied in to them.
Life Chief removes walls as insurer gets fitter: David Nish is back on his bike.
He has a new ultra-lightweight racer to train for a 100km ride later this year.
The Chief Executive of Standard Life crashed his old one just before the
group‟s full year results last month, leaving him with a nastily grazed cheek.
Top-ranking private clinic told to close: A private surgical centre built to treat
NHS patients that provides first-class clinical results and tops patients‟
recommendations for cleanliness and satisfaction, is being forced to close by
the local NHS.
Chinalco sees Rio as key partner: Chinalco, the Chinese aluminium group, has
no plans to sell down its shares in Rio Tinto, viewing the mining house as a
key strategic partner as Chinalco expands overseas.
QE2 won. Now what?: Don‟t look now, but QE2 worked. The aggressive
second round of quantitative easing unleashed last autumn by the
Federal Reserve clearly had the advertised effects. Last week‟s U.S. payroll
data underline this. Last August, when Ben Bernanke of the Fed signalled
more bond purchases in a speech at Jackson Hole, the unemployment
rate was stuck at 9.6%. Payroll expansion had dipped alarmingly. Now,
unemployment has ticked down to 8.8%, while on a six-month rolling
average payrolls are expanding at their fastest since the summer of 2007.
This matters to the Fed, whose mandate includes full employment. QE2
had other aims. James Bullard, head of the St Louis Fed, last week toured
Europe defending QE. Since Jackson Hole, he noted, inflation
expectations had risen, as had share prices, real interest rates had fallen
and the dollar had depreciated.
2 Newspaper Headlines Refer to the last page for disclaimer
04 April 2011
Vale: signs of growing resource nationalism: Private investors own shares
in Vale because the Brazilian company is the world‟s largest iron ore
miner, not because it is a tool of the government‟s socio-economic policy.
Yet that is increasingly how Vale is seen in Brasilia, where Chief Executive
Roger Agnelli is considered a political obstacle. His time may be up:
controlling shareholder Valepar, mostly owned by government
institutions and pension funds, has said it will nominate Mr Agnelli‟s
replacement this week. Replacing a CEO who has been in post for a
decade should not worry shareholders. The wider issue, amid signs of
growing resource nationalism, will be the agenda of his more politically
malleable successor. Dilma Rousseff, Brazil‟s President wants national
champions such as Vale to play a greater role in investment and job
creation at home – especially after the miner hailed its 2010 net profit of
$17.3 billion as the sectors biggest ever. Ms Rousseff believes Vale should
concentrate less on exporting iron ore to China and more on investing in
the domestic steel, shipbuilding and fertiliser industries. Like her
predecessor, Luiz Inacio Lula da Silva, she wants Vale to diversify from
iron ore, but inside Brazil. In contrast, Mr Agnelli‟s focus has often been
outward; Vale bought nickel miner Inco in Canada and toyed with buying
Swiss miner Xstrata.
Enel: well diversified geographically: Why own shares of Enel? Count the
Italian utility‟s disadvantages. Its net debt stood at €45 billion at the end
of 2010. That gives it a ratio of net debt to earnings before interest, tax,
depreciation and amortisation of 2.6 times – one reason why its shares
trade at a discount of around 25% to its peers. It operates in a heavily
regulated industry. And its two biggest markets – Italy and Spain – are
not exactly growing. But in a global environment where risk, and
particularly energy risk, is growing, Enel may have the perfect defensive
qualities. It generates enormous amounts of cash, as befits one of
Europe‟s biggest utilities – €73 billion of revenues in 2010 and free cash
flow of about 12%. Morgan Stanley forecasts an average cash flow yield
of 15% between 2011 and 2013 – double that of peers. That will allow
Enel to continue paying a high dividend, and to keep deleveraging. Chief
Executive Fulvio Conti has targeted a net debt/ebitda ratio of 1.8 times
The Daily Telegraph
Oligarchs renew bid to halt BP deal with Rosneft: Four Russian oligarchs will
make a renewed attempt to block BP‟s proposed $16 billion (£10 billion)
share-swap deal with Rosneft on Monday, claiming it contravenes an existing
Banks „not on top of online fraud‟, warn MPs: Banks have done too little to
protect their customers from online fraudsters, despite the growing
popularity of internet banking services, according to a report by MPs.
Vodafone sells SFR stake to Vivendi for £6.8 billion: Vodafone has sold its 44%
stake in SFR, France‟s second largest mobile phone operator, to Vivendi for
£6.8 billion (€7.75 billion) and said it will return £4 billion of the proceeds to
Commodities column: Fertiliser demand show PotashCorp was right to reject
hostile bid: It appears that Bill Doyle was right. PotashCorp of Saskatchewan
really was worth a lot more than the $39 billion (£24.4 billion) BHP Billiton
was prepared to pay for it.
3 Newspaper Headlines Refer to the last page for disclaimer
04 April 2011
A no-longer lonely planet comes to Britain: Gowalla, a social networking site
based on where you know as well as who you know, is set to become the
latest social media site to open an office in the U.K. It comes as the company
sets its sights on doubling the size of its operations this year and reshaping
itself as a “social Lonely Planet”.
Banks seek to hold back the tide of regulation: Banks and other financial
companies claim new regulation is the biggest threat they face in the next
year as industry unrest about tougher rules hits a record high, a CBI survey
Do you want Clubcard points with your Corsa?: The supermarket whose
critics claim is “eating Britain” will already arrange insurance for your pet,
organise your bank account and even a funeral; now they will sell you a used
White Stuff seeks fashionable ways to raise funding: The fashion brand White
Stuff is reported to be preparing for a sale or flotation. The majority
shareholders and founders Sean Thomas and George Treves, who control
75% of the equity, are rumoured to be considering which adviser to appoint
with a view to selling stakes in the business in the next 18 months.
Sluggish Eurozone will hold U.K. back: The Eurozone economy is growing at a
much slower pace than expected at this stage of a recovery, with the U.K. set
to outstrip the troubled currency area‟s performance.
Jobs focus switches to private sector: Job opportunities in the U.K. shrank last
month, according to a report from the country‟s largest recruitment website,
£200 million of quality bling up for sale: The Owners of Mappin & Webb,
Watches of Switzerland and Goldsmiths, the jeweller Aurum Holdings, has
been put up for sale after a restructuring delivered higher full year earnings,
the company has said.
HSBC joins apprenticeship scheme: HSBC will join the Government‟s financial
apprenticeship scheme, aimed at non-graduate employees.
Green paper proposes £155 a week universal pension: Ministers are to outline
plans for a universal state pension which they say will help those now in
works prepare for a “different sort of world” in retirement.
BP expected to resume drilling in Gulf of Mexico after deal with U.S.
regulators: BP plans to restart deepwater drilling in the Gulf of Mexico this
summer a year after the fatal Deepwater Horizon rig explosion triggered the
worst oil spill in history.
Northern Rock in common Ownership is a better deal for taxpayer, study
finds: Mutualisation of Northern Rock would deliver a better payback to
taxpayers than a sale of the state-owned lender, according to a study
examining options for the Newcastle-based bank rescued from bankruptcy by
the government in 2008.
4 Newspaper Headlines Refer to the last page for disclaimer
04 April 2011
Icesave repayment to U.K. investors splits Iceland voters: A £2.35 billion
agreement to pay back the British government after it stepped in to
guarantee U.K. deposits following the failure of online bank account Icesave
has split public opinion in Iceland ahead of a critical referendum this week.
Barclay‟s Boss: „We forgot about our customers‟: In the week Barclays was
named most complained about bank, the Boss promises „intense and
relentless‟ action to put it right. It can‟t have been an easy day for Antony
Jenkins, Chief Executive of global retail banking at Barclays, after the Financial
Services Authority revealed that his business was the most complained about
finance brand in Britain.
Sale leaves 1,400 seafood workers in limbo: The future of 1,400 seafood
workers has been thrown into doubt after a decision by the Icelandic Owner
of Grimsby‟s Coldwater Seafood and Seachill plants to sell its worldwide
Candy Brother‟s arm is £4.4 million in the red: The loss of the Chelsea
Barracks and NoHo Square projects in London pushed the Candy brothers‟
development and design arm into the red last year. Candy & Candy recorded
a £4.4 million pre tax loss for the 12 months to the end of June, accounts
filed at Companies House show.
New appeals process for companies refused loans: Big banks will this week
launch an appeals system for small businesses that feel badly treated by their
Extra billions set aside to lend abroad: Controversial plans will see £24 billion
added to Britain‟s official foreign currency reserves during the next four years
- mainly to lend to countries in economic difficulties.
BBC Boss to tell staff „no more gravy train‟: BBC Boss Mark Thompson will tell
staff this week that his cost-saving review will spell the end of longstanding
allowances, generous redundancy packages and bonuses.
Bosses are getting younger: A sign of growing older is said to be that
policemen start looking young but when it comes to Britain‟s top companies
Bosses really are getting younger.
Rates hold expected as Europe faces rise: The Bank of England is expected to
leave interest rates unchanged this week but a likely rise in Eurozone rates
has brought a warning it could damage the European economy.
Strong and growing Rolls-Royce is undervalued: Now an integrated
aerospace, defence, and energy firm through many transformations, Rolls-
Royce‟s businesses range from gas turbine engines – for military planes and
civil airlines, corporate jets, and helicopters – to water jets.
Microsaic will bring a world first to aim: Technology specialist Microsaic
Systems, pioneer of the world‟s only mini-mass spectrometer, is listing on Aim
5 Newspaper Headlines Refer to the last page for disclaimer
04 April 2011
Finance sector forges ahead: The financial services industry has seen a strong
pick-up in activity since the turn of the year with business levels at the best
since the credit crunch hit in September 2007.
The Scottish Herald
Banks cut jobs to adjust to new economic reality: Banks are continuing to
make heavy job cuts as they adjust to a “new normal” of reduced business in
the wake of the financial crisis, a survey has revealed.
Babcock reveals green vision for long-term future of shipyards: Rosyth
shipyard operator Babcock is aiming to become a big player in the renewable
energy sector, as a long-term replacement for its aircraft carrier work, after
doing a deal to store 68 turbines for Scottish and Southern Energy.
Plum job for Chief of family company with historic roots: While globalisation
has changed the competitive landscape for all businesses, more small
companies in Scotland than many people realise have amassed decades of
experience of trading with overseas suppliers.
Market Round Up
FTSE 100 gained 1.7% to 6,009.9.
FTSEurofirst 300 index rose 1.5% to 1,141.4.
DJIA advanced 0.5% to 12,376.7. NASDAQ climbed 0.3% or 8.53
points to 2,789.6. S&P 500 Index closed 0.5% higher, at 1,332.4.
Nikkei 225 index is trading 0.8% higher, at 9,784.2.
In Asia, crude oil for May delivery is trading 36 cents higher at
$108.30 per barrel.
At 0410 BST today, the GBP is trading marginally higher against the
USD at $1.6124, 0.1% up against the EUR at €1.1332 and slightly
lower against the JPY at ¥135.69.
6 Newspaper Headlines Refer to the last page for disclaimer
04 April 2011
This e-mail, including its contents and any attachments are confidential. Please delete this email and notify the sender immediately, if you
are not the named recipient. You should not copy it for any purpose or disclose its contents to any other parties. Copyright is the property
Any prices or data contained herein are indicative and subject to change without notice; its accuracy is not guaranteed and should not be
relied on. E-mail transmission cannot be guaranteed to be secure or free from errors. The sender therefore does not accept liability for any
errors or omissions in the contents of this message which arise as a result of e-mail transmission.
Although ETX Capital has taken reasonable precautions to minimise the risk of transmitting software viruses, we advise you to carry out
your own virus checks on any attachment to this message. We make no representation or warranty as to the absence of viruses in this e-
mail or any attachments. In order to protect our customers and business and comply with our regulatory requirements, we may monitor
and read e-mails sent to and from our server(s).
If you receive this email in error, please telephone +44 (0) 20 7392 1494
ETX Capital is a trading name of Monecor (London) Limited which is registered in England at Beaufort House, 15 St Botolph Street,
London, EC3A 7DT under company number 851820, and is authorised and regulated by The Financial Services Authority, FSA registration
7 Newspaper Headlines