The trading update is very much in line with our expectations.

These results confirm our view of the current strength and improved underwriting discipline of the Lloyd's market.

One can fall into the 'soft bigotry of low expectations.'

The outlook for our capital markets, investment banking, and wealth management businesses remains positive, driven by expectations for moderate growth in the North American economy and continued strength in equity markets. Merchant banking revenue is expected to be lower than in 2005 as we have significantly reduced the size of the portfolio.

An earnings boost doesn't trump a contrary verdict.

I used to teach acting in a maximum security men's prison. I worked with guys with the most dysfunctional behavior problems. I probably learned more there than from my prestigious theater degree.