City&FinanceBriefing Inbrief City faces storm over 5 billion bonus bonanza stormfacesCity billion5over THE City is set to defy public outrage over bonuses with a 5 billion bonanza after a resurgent year on the financial markets. The expected payouts have been fuelled by a record rise in the stock market and a revival in huge mergers and takeover bids. They coincide with the unemployment total passing 2.5 million. City minister Lord Myners will tomorrow attempt to rein in the banks at a Treasury meeting with 11 of the Citys biggest employ- ers, urging them to adopt principles agreed at last months G20. Investment bank JPMorgan kicks off the annual bonus season today when it will unveil a quadrupling of quarterly profits to about 1.2 billion. Goldman Sachs will also report a huge recovery in profitability, and is expected to pay out a record 14 billion globally, with the average employee earning 500,000 this year. It is the highest amount in the firms 140-year history and some Goldman stars, such as UK boss Michael Sherwood, 43, could earn bonuses running into eight figures. Liberal Democrat Treasury spokesman Vince Cable said: I think there will be revul- sion at the size of these bonuses. BY JONATHAN PRYNN Burberry smart after Fashion Week triumph BURBERRY today smashed City forecasts as its triumphant return to London Fashion Week boosted the companys sales. The label moved its catwalk show for its top-end Prorsum womenswear collection to the capital from Milan for the events 25th anniversary, with a front row which boasted actresses Gwyneth Paltrow and Emma Watson, the Burberry model and Harry Potter star. The show created a fantastic halo around the brand, which helps with demand, chief financial officer Stacey Cartwright said. Although the show was towards the end of the period covered by these results, she said the company had seen stronger sales trends in recent weeks. Like-for-like sales at its own stores rose 2% in the six months to the end of September beating analysts expectations. In the last three months of the period, comparable sales rose 5%, but this compares with a bleak period last year for the luxury goods industry. Cartwright said customers are looking for products with longevity and heritage, boosting sales of its handbags and trench coats in London and elsewhere. Total sales rose to 572 million in the first half from 539 million last year. Burberry is said to be especially happy with its new childrenswear range as parents continue to splash out. It recently opened its first childrenswear-only store in Westbourne Grove. Punch to take a hit of 663m PUNCH Taverns today cut the value of its pub estate by 663 million, a move that would slice billions off industry finances if its rivals followed suit. The pub giant said the in-use value of its pubs -- how much they are worth as businesses rather than as properties -- had tumbled in the recession. Punch made a profit of 160 million for the year to 22 August, down by more than 100 million. Dividends have been binned. Australia Dollars 1.6440 Canada Dollars 1.5490 Denmark Kroner 7.5432 Eurozone Euro 1.0165 Hong Kong Dollars 11.5700 Japan Yen 135.0100 New Zealand Dollars 1.9842 South Africa Rand 10.7900 Sweden Kronor 10.4700 Switzerland Francs 1.5402 UAE Dirham 5.4230 United States Dollars 1.5027 TOURIST RATES UP 63.54 at 5217.69 FTSE 100 DOW JONES NIKKEI -$ DOWN 14.74 at 9871.06 DOWN 16.35 at 10,060.06 UP 0.3c at $1.5954 >>For all the latest City share prices, call 0905 817 1694* or visit * Calls cost 75p/min from a BT landline & last approx 1 min per quote. Not all stocks are available RBS in Euro deal to sell branches ROYAL Bank of Scotland is close to a deal with the European Commission that will see it hive off 312 English and Welsh branches to pass Europes state aid rules. Talks between the Treasury, which owns 70% of RBS, and Europes competition commissioner Neelie Kroes are said to be close to a solution, although she could still demand more disposals. Loadsamoney: Sherwood could be in for an eight-figure payout BAEdeadlockon Mexicobribes BAE SYSTEMS has still not come to an agreement with the Serious Fraud Office over its claims it secured business abroad through bribes. The SFO threatened BAE with prosecution if it did not pay fines of hundreds of millions of pounds. Today BAE said it is expending considerable effort to resolve [the case], but it will see the SFO in court if necessary. Lotterybossis a1.8mwinner NATIONAL Lottery owner Camelots chief executive Dianne Thompson scooped 1.8 million in pay and bonuses last year, its annual report showed today. Thompson enjoyed an 11% pay rise, taking home 1.07million in salary and a 792,000 integration payout. The firm posted its best sales figures in a decade, up 3.6% to 5.1 billion. Rio Tinto to up iron ore output MINING giant Rio Tinto today raised its forecast for total iron ore production by as much as 7.5%, as it reported a record third quarter. In the last three months, Rios iron ore production was up 12% on a year earlier at 47.5 million tonnes, and the group expects to produce 210 million to 215 million tonnes during the whole of this year. 46 Wednesday, 14 October 2009 London Lite index.html2.html3.html4.html5.html6.html7.html8.html9.html10.html11.html12.html13.html14.html15.html16.html17.html18.html19.html20.html21.html22.html23.html24.html25.html26.html27.html28.html29.html30.html31.html32.html33.html34.html35.html36.html37.html38.html39.html40.html41.html42.html43.html44.html45.html46.html47.html48.html49.html50.html51.html