BUSINESS WITH PERSONALITY
SOCGEN
Issue 1,152 Thursday 10 June 2010
TOP CITY BANKS
HIT BY OFT PROBE
POLITICS
▲
BY MARION DAKERS
THE Office of Fair Trading (OFT) will
today launch an investigation focus-
ing on the prices investment banks
charge for services such as advising
companies and underwriting share
offers heaping pressure onto an
already embattled industry.
“We can confirm that we are
launching the early stages of a mar-
ket study into equity underwriting,”
an OFT spokesman confirmed to City
A.M. last night but refused to give fur-
ther details.
The OFT has not yet indicated what
areas the study will cover, but it is
expected to examine whether parts of
the work done by investment banks
may affect competition or consumers.
Some of the world’s biggest invest-
ment banks including Goldman
Sachs, Citigroup, UBS and Morgan
Stanley will come under scrutiny in
the probe set to be officially
announced at 7am today.
The announcement has come as a
bolt from the blue for many banks,
with several confessing last night
they had not heard of any plans for an
investigation.
But the enquiry comes soon after
some of the biggest underwriting and
advisory fees ever seen in the City.
Prudential was recently left with an
underwriting fees bill of roughly
£81m after its botched attempt to buy
FTSE 100 ▲ 5,085.86 +57.71 DOW t 9,899.25 -40.73
THE BEST BEERS TO DRINK
DURING THE WORLD CUP
FLAVOURS PUT TO THE TEST P28
www.cityam.com
WORLD’S TOP TEN RIGHTS ISSUES AND
UNDERWRITING FEES
ISSUER DATE PROCEEDS FEES
($ bln) (%)
1. RBS Jun 08
2. HSBC Apr 09
3. Fortis Oct 07
4. UBS May 08
5. Rio Tinto Jul 09
6. Enel Jun 09
7. Imperial Tobacco Jun 08
8. Santander Nov 08
9. Sberbank Rossii Feb 07
10. SocGen Feb 08
OFT chief executive John Fingleton will announce the probe at 7am today
AIA, worth around 3.5 per cent of the about one per cent higher than those Cable and former Treasury minister
total value of the deal – a sum one charged in markets like Scandinavia Lord Myners have condemned the sta-
investor said was “verging on the and Switzerland. tus-quo. “Most bankers tell me they
obscene.” The chorus of dissatisfaction over can’t understand why companies are
There has been a steep increase in the size of rights issue underwriting continuing to pay the level of fees
underwriting fees across the board fees and the high proportion collect- that they are,” said Lord Myners.
since September 2008 when the col- ed by the banks is now reaching fever “The problem with investment
lapse of Lehman Brothers drove mar- pitch. The Institutional Shareholders banking fees is that investment
ket volatility to peak levels. Average Committee trade body, representing bankers are paid for doing deals
UK underwriting fees are now the a third of UK investors, has launched rather than for doing successful
highest in Europe at around 3.5 per its own probe into the issue and the deals.”
cent, just ahead of Germany and likes of business secretary Vince ALLISTER HEATH: P2
NASDAQ t 2,158.85 -11.72 £/$ ▲ 1.45 +0.01 £/¤ 1.21 unc ¤/$ 1.20 unc
HITS BACK
KERVIEL BRANDED
A LIAR BY EX-
BOSS P3
FREE
US on the
warpath
over BP
▲
ENERGY
BY EMMA SADOWSKI
US--LISTED shares of BP plunged near-
ly 16 per cent last night, hitting their
lowest level since 1996 as political
pressure on the company over its han-
dling of the Gulf of Mexico oil spill
mounted and investors worried it
might be forced to suspend its divi-
24.4 2.8 dend.
The plunging share price, came
19.4 2.6 amid a growing backlash against the
oil giant with a group of US Senators
19.3 0.7 yesterday writing to chief executive
Tony Hayward urging him to suspend
15.4 1.7 the dividend. The oil major should
hold off making its payments to
12.3 2.6 shareholders until the oil spill is
plugged and under control, wrote
11.1 0.9 more than 30 Senators in the letter.
The letter came after BP
9.9 1.9 announced intentions to pay out its
first quarter dividend on 21 June.
9.3 1.7 Despite fears over the increasingly
aggressive rhetoric used by US
8.8 0.1
President Barack Obama, Prime
8.4 1.2 Minister David Cameron refused to
comment directly on the issue. A gov-
ernment spokesman said the oil spill
remained a corporate issue.
Cameron’s stance was in direct con-
trast to the views of the majority of
panellists on the City A.M. /
Politicshome.com Panel who said the
Prime Minister should make a state-
ment in support of embattled BP.
Forty-four per cent of panellists said
the Prime Minister should make a
statement backing the oil major,
while just 13 per cent said he should
criticise BP.
Certified Distribution
5/04/10 - 2/05/10 is 106,285
 2 News
Populist reaction to BP is dangerous
EDITOR’S LETTER
ALLISTER HEATH
THERE is much that is ugly about the
BP fiasco. It goes without saying that
the firm hasn’t covered itself in glory,
that Tony Hayward, its CEO, has suf-
fered from foot in mouth disease and
that parts of the US coast are reeling
from an en environmental catastro-
phe. I’ve criticised BP in the past and
will continue to do so. But the reac-
tion of many commentators, as well as
of Barack Obama’s administration,
has been even less edified and shows,
yet again, that short-sighted populism
is now the order of the day when it
comes to the relationship between
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7248 1729
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Deputy Sales Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
BACKLASH OVER INDIAN FLOAT RULES
India is facing a growing private sec-
tor backlash against a rule change
that will lead to a flood of more than
$50bn of new shares being listed over
three years.
There are concerns that the move
could damage the country’s stock
market and hamper economic
growth.
The Finance Ministry has ordered
companies to raise the portion of
their shares that are publicly held
from the current 10 per cent to 25 per
cent.
SEC PROBES SECOND GOLDMAN ASSET
The US Securities and Exchange
Commission has stepped up its
inquiries into a complex mortgage-
backed deal by Goldman Sachs that
was not part of the civil fraud charges
filed against the bank in April,
according to people close to the mat-
international business and politics.
Obama and his Democratic Party,
for all their pretensions to globalism
and love affair with international
bureaucracies, are really narrow
nationalists. They have relentlessly
played the xenophobia card when
dealing with BP, which they usually
refer to as British Petroleum; that is so
even though most of BP’s US opera-
tions are manned by Americans and
are made up of former US firms pur-
chased by BP. The authorities have
scandalously downplayed the role in
the crisis played by US firms. BP may
be domiciled in the UK but it is a core
component of America’s energy infra-
structure: the fact that it was develop-
ing new sources of oil for US
consumers (and hence reducing their
reliance on the Middle East) ought to
say it all. It even supplies the US
armed forces with petrol.
Countries should believe in free
markets and treat all firms equally,
regardless of origin; yet this is clearly
not happening in BP’s case. There
Debt crisis to
hurt growth
WORLD ECONOMY
▲
BY JESSICA MEAD
PROLONGED uncertainty and turmoil
in the Eurozone risk derailing the
world economy recovery if heavily-
indebted developed countries have to
swallow austerity medicine more
quickly, the World Bank said yester-
day in its latest Global Economic
Prospects 2010.
While the World Bank expects glob-
al GDP growth to be 3.3 per cent in
2010 and 2011, and 3.5 per cent in
2012, an extended sovereign debt crisis
could cut growth to 3.1 per cent in
2010, followed by 2.9 per cent and 3.2
per cent in 2011 and 2012.
“Deeper and more widespread
effects might arise if the situation
causes investors to become signifi-
cantly more risk averse; or in a less
likely scenario, if there is a major cri-
ter.
SEC interest in Hudson Mezzanine
Funding, a $2bn collaterised debt
obligation, comes amid settlement
talks with Goldman over accusations
that the bank defrauded investors in
Abacus, a similar CDO.
Goldman has denied the SEC’s com-
plaint.
EU URGED TO SPEED FINANCE RULES
France and Germany put on a show of
unity yesterday in order to urge fel-
low European Union leaders to accel-
erate efforts to tighten financial
regulation and clamp down on short
selling.
In a joint letter to José Manuel
Barroso, president of the European
Commission, Nicolas Sarkozy, the
French president, and Angela Merkel,
the German chancellor, called for
proposals within a month to regulate
trading in sovereign credit default
swaps – a form of insurance against
government debt default – and short
selling.
comes a time when personal attacks,
bullying and threats of part-nationali-
sation towards a UK firm and UK citi-
zens should start to ring alarm bells –
that time is now, especially given that
the US authorities seem to be believe
that they can decide BP’s dividend pol-
icy and in Obama’s case, talk of “kick-
ing ass” and suggest Hayward be fired
(this matters: BP’s payouts represent
£1 out of every £7 made across UK list-
ed companies and the firm is also one
of Britain’s biggest taxpayers). The
Foreign Office should acknowledge
the spill has been a disaster – but it
should also tell the Americans that
they need to calm down.
There is now growing fears among
British businesses that it will be hard-
er for them to operate in the US in
future; this could even become an
issue for a firm such as BAE Systems,
which relies on the American market.
So much for the “special relation-
ship”: Britain’s support for American
foreign policy counts for nothing
(Obama’s biography made his dislike
sis of confidence, prompted by (or
causing) a default or major restructur-
ing of high-income sovereign
European debt.”
The global recovery will be powered
by developing countries, which
should see growth rates in excess of 6
per cent for the next three years. In
contrast, the World Bank only proj-
ects growth in high-income countries
to strengthen from 2.3 per cent this
year to 2.7 per cent in 2012.
The report follows comments by
the IMF’s Naoyuki Shinohara, who
said that Asia would lead the recovery.
The IMF’s Naoyuki
Shinohara said adverse
developments in
Europe could have
implications for Asia
INSURANCE TAX PREMIUMS MAY RISE
Speculation is growing that the
Government is planning to at least
double the 5 per cent tax rate on gen-
eral insurance premiums in this
month’s emergency Budget.
Increasing the rate charged on items
such as car, household and pet cover
could raise billions of pounds in addi-
tional tax revenues, but would drive
up the cost of policies and could force
some people to stop buying essential
protection, experts said.
FOXCONN TO PASS ON WAGE RISE COST
Foxconn, the Taiwanese company
that assembles gadgets for Apple, Dell
and Sony, said that it would start
passing on to its customers the cost of
massive wage rises at its Chinese fac-
tories. The news came only a day after
Foxconn told workers at its Shenzhen
plant in China that it would raising
their basic salary by 70 per cent.
of the UK very clear).
There is one caveat to this: we
shouldn’t forget the anti-Kraft hysteria
as the US food giant stalked and ulti-
mately gobbled up Cadbury. Of
course, Kraft made mistakes; but the
ugly protectionism of many politi-
cians and much of the media means
that they are in a much weaker posi-
tion to criticise the US today. That
said, at no time did the anti-Kraft sen-
timent become as virulent and as
extreme as the anti-BP rhetoric that
now dominates America’s airwaves.
There is another issue. The public is
right to want good safety measures
and less pollution. But it is wrong to
assume that this risk can be abolished
entirely. Even the best-managed firm
in the world will sometimes suffer
from oil spills or other problems, espe-
cially when they have to explore in
dangerous and inaccessible places.
This is spill is clearly a disaster. But a
little bit more rationality and a little
less populism are desperately needed.
allister.heath@cityam.com
Federal Reserve chairman Ben Bernanke is in no rush to raise rates
Bernanke is still cautious
US ECONOMY
▲
BY MARION DAKERS
FEDERAL Reserve chairman Ben
Bernanke said yesterday the US eco-
nomic recovery was on a solid footing
but cautioned it could be years before
the jobs lost during the deep reces-
sion of 2008-2009 are restored.
While Bernanke said the economy
had made an “important transition”
to relying less on government sup-
port, his emphasis on the struggles of
the US jobs market suggested the cen-
SIR FRED BUYS £3.5M PROPERTY
Sir Fred Goodwin, the disgraced
banker blamed for the near-collapse
of Royal Bank of Scotland, has bought
a secluded home that has been
described as one of Edinburgh’s finest
houses.
The £3.5m property was originally
built by Graeme Souness, the former
Rangers manager, and has been
redesigned and extended since.
US PE HIT OUT AT INTEREST TAX PLANS
The American private equity industry
has warned that plans to more than
double the US tax rate on investment
partnerships could lead to a sharp
reduction in the amount of money
being invested in the economy and a
loss in jobs.
The warning comes after three years
of open discussion on the most appro-
priate tax code for private equity man-
agers, venture
CITYA.M. 10 JUNE 2010
NEWS | IN BRIEF
Virgin and BSkyB appeal ruling
Virgin Media has appealed against an
Ofcom decision forcing BSkyB to charge
competitors less for its football cover-
age, saying the ruling doesn’t go far
enough. BSkyB has also appealed the
communication watchdog’s decision,
saying the regulator “acted unlawfully”
in imposing conditions on its programme
packages. Virgin said the methods used
by Ofcom to calculate the maximum
pricing of Premier League games was
“flawed”, and has lodged a challenge
with the Competition Appeals Tribunal.
The three-year probe into UK pay televi-
sion has angered many broadcasters.
Euro corporate bonds dry up
European banks sold $11.7bn (£8bn) of
corporate bondS in the last six weeks to
Friday – less than a tenth the amount
they sold this time last year, according
to Dealogic. They have raised less from
mainstream capital markets in this peri-
od than in any time since 1995. Banks
are also said to be under pressure from
regulators to lengthen the average
maturity of their debt, in order to lessen
reliance on risky short-term funding
markets.
Picture: REUTERS
tral bank was in no rush to raise inter-
est rates. “A significant amount of
time will be required to restore the
nearly 8.5 million jobs that were lost,”
he told the House of Representatives
Budget Committee.
That view was bolstered by a report
from the Fed that said the economy
strengthened last month. “Economic
activity continued to improve since
the last report across all twelve
Federal Reserve districts, but many
districts described the pace of growth
as ‘modest’”, it said in its Beige Book.
ENEL TO TEST NEW FORM OF SOLAR
POWER
In the industrialised Eastern Sicilian
town of Priolo Gargallo, Italian ener-
gy company Enel is about to begin
testing a new form of solar power
that, it says, has the potential to dis-
place older technology.
In the coming weeks, Enel will switch
on a power plant with a generation
capacity of up to five megawatts,
linked to an adjacent 752MW gas-
fired facility.
FRANCE SELLS BUILDINGS TO CUT DEBT
Other countries are looking to priva-
tize state-owned companies to cut the
debt. France is looking to sell min-
istry buildings, royal hunting lodges
and 1,700 properties to chip away at
the country’s record-high debt while
getting rid of the high-maintenance
part of the state’s vast property port-
folio.
CITYA.M. 10 JUNE 2010 News 3

CBI: Cuts must

Rogue trader bear down on
Kerviel called public sector

a liar by boss
ECONOMY

▲
BRITAIN’S huge deficit should be
tackled with £4 in spending cuts for
every £1 in tax hikes, the CBI said.
In a letter to Chancellor George
Osborne yesterday ahead of the emer-
gency Budget on 22 June, the CBI
warned that the public finances
▲

ENFORCEMENT Tuesday amid a media frenzy over should be repaired without damag-
BY STEVE DINNEEN one of the most famous faces of the ing growth prospects.
financial crisis in France. IoD head Miles Templeman warns on increasing red tape Picture: REUTERS It called for a shake-up of public
ROGUE trader Jerome Kerviel was The ex-trader has said his bosses services provision to save money

IoD says board members

branded a liar who took “inhuman” encouraged him to take risks and his through moves such as job cuts and
risks by a former boss yesterday dur- lawyer has painted him as a sharing back office functions.
ing a trial over trading losses that “pawn.”SocGen says he acted alone CBI deputy director-general John
brought French bank Societe and denies tacit complicity. Cridland said: “A radical re-engineer-

can’t cope with new regs

Generale close to collapse.
The bank’s former head of invest-
ment banking, Jean-Pierre Mustier,
hit back at Kerviel’s claims in court
that SocGen tolerated unauthorised
trading positions that eventually cost
the bank €4.9bn (£4bn) to unwind in
“We encouraged traders to know
how to take risks. We did not encour-
age them to take risks,” said Mustier,
who quit SocGen last August amid an
insider trading probe that also target-
ed non-executive director Robert Day.
Lawyers quizzed Mustier over the
▲
ing of public services is a must if dam-
aging tax rises are to be avoided. Only
an effective cost reduction strategy
can safeguard future growth.”
The CBI has “major concerns” over
proposals to hike capital gains tax to
REGULATION In a sign of the ever-increasing vol- similar levels as income tax and

2008.
“You lied to me all along,” an ani-
mated Mustier told Kerviel in the
cramped courtroom in the Palais de
Justice, before telling judges Kerviel
took “inhuman” risks that would be
termed “criminal” in the United
States.
Kerviel , 33, risks five years in jail
and a €375,000 fine if found guilty of
charges of breach of trust, computer
abuse and forgery. His trial began on
probe Wednesday, but the ex-banker
responded by saying the regulator's
sanctions committee planned to rec-
ommend his acquittal.
Former Societe
Generale trader
Jerome Kerviel told a
French court that he
often broke risk limits
BY MARION DAKERS
THE Institute of Directors, led by
director general Miles Templeman,
has warned that board members are
struggling to cope with the amount
of new regulation, in guidelines pub-
lished today.
The Director’s Handbook includes
advice on dealing with the reams of
law and regulation that have been
introduced since the credit crisis.
ume of new rules, the book does not
include information on the Financial
Reporting Council’s corporate gover-
nance code requiring directors to face
re-election every year – revealed just
two weeks ago.
Since the last edition was printed
in 2007, the Companies Act 2006 has
taken full effect. This codifies the
duties of directors and affects a num-
ber of areas from conflicts of interest
to social responsibility.
wants a broad definition of business
assets to prevent deterring start-ups.
It also wants tax credits for
research and development protected
as well as capital spending levels to be
restored as soon as possible.
“The UK’s future economic
prospects depend on the ability of
firms across the country to create
new jobs and win orders. Increasing
taxes makes this more difficult,”
Cridland warned. MILIBAND: P7

We are changing our tactics

Online trades for £4.42

As the world turns its attention to a summer of football in South Africa, we have
decided to change our tactics and lower our trading commission to just £4.42*, from
when England’s participation in the tournament starts on 12 June 2010, until they win
the trophy or exit the competition.

You will be able to trade equities, Exchange Traded Funds (ETFs), Exchange Traded
Commodities (ETCs), Investment Trusts, REITs, covered warrants, turbos and structured
products for just £4.42 per online trade. But remember that you cannot win them all
and the value of your investments can fall as well as rise.

Whatever the formation, at this price you will be hoping for extra time!

Get in on the action and open an account at

www.stockbrokers.barclays.co.uk/offer
or call us on 0845 300 4442** and play to the final whistle.

*This promotion is valid for all online trades in stocks and shares and other appropriate investment instruments listed and trading on the London Stock Exchange or other recognised exchanges where we may execute your instruction, made available to trade by Barclays Stockbrokers
and placed within a MarketMaster®, Investment ISA or PensionMaster (SIPP) (subject to SIPP investment restrictions as set by the SIPP provider). Trades will be charged at the commission rate of £4.42 for as long as England remain in the tournament in South Africa between 12
June 2010 and 11 July 2010. When England are eliminated, online trading commissions will revert to standard pricing with immediate effect, or at the appropriate date Barclays Stockbrokers choose, that date being no later than 11 July 2010. If England win the tournament, this offer
will end on 11 July 2010. Limit orders, stop orders and trailing stop orders that are executed within the duration of the promotion will be charged at the promotional rate. The offer is available to new and existing clients and applies to each individual account opened or held. Normal
stamp duty, PTM Levy, account admin fees and standard terms and conditions relating to your Barclays Stockbrokers account will apply. Please refer to the promotion’s full terms and conditions for details. The price and value of investments and their income fluctuates: you may get
back less than the amount you invested. How an investment performed in the past is not a guide to future performance.
**Lines are open from 7.30am to 7.30pm Monday to Thursday and from 7.30am to 6pm Friday, excluding bank holidays. Calls to 0845 numbers from a BT residential line will cost no more than 4p per minute, plus 9.9p call set-up fee (correct as at April 2010). The price on non-BT
phones may be different; please check with your service provider. You can only use these numbers if you are calling from the UK; if calling from outside the UK, please call +44 141 352 3909. Calls may be recorded to monitor the quality of our service, to check instructions and for
security purposes.
CITYA.M. 10 JUNE 2010 Focus on Sovereign Debt Crisis 5

DUTCH BALLOT TO DETERMINE CUTS

Greece to tap second part of
€110bn bailout in September
Greece has promised to ram and the payment will be in

▲
ECONOMY
BY HARRY BANKS
GREECE will receive the second instal-
ment of a €110bn (£90bn) bailout
from the European Union and the
International Monetary Fund (IMF)
on schedule in September, its finance
minister said yesterday.
“Of course [the second payment] is
secure,” George Papaconstantinou
told reporters during a press briefing.
through deficit-reduction measures
totalling €45bn over 2010-2013 to nar-
row its budget gap by an unprece-
dented 11 percentage points of GDP.
EU and IMF officials are due in
Athens on Monday to start a review of
the cash-strapped country’s finances
and reforms.
“We will liaise with them and
review the budget’s implementation.
They will take decisions in August
September,” Papaconstantinou said.
State revenues in the first five
months of 2010 rose more than eight
per cent year-on-year, while expendi-
ture was down more than 10 per cent.
The deficit in the same period had
been slashed by some 40 per cent.
“This reduction exceeds the deficit
target, even before a raft of measures
have started to take effect,”
Papaconstantinou said.

DUTCH voters went to the polls yesterday in an election to determine the extent of the
FLIGHTS
FROM
country’s austerity measures. A narrow victory is expected for the centre-right People’s
Party for Freedom and Democracy. The snap election was called in February following
the collapse of Prime Minister Jan Peter Balkenende’s coalition. Picture: GETTY

EU urged to

10
ban shorting
grip on Eurozone markets after their
▲

ECONOMY
BY OLIVER SHAH
GERMANY and France called for
European Union-wide curbs on naked
short-selling yesterday, a month after
Berlin plunged financial markets into
chaos with a unilateral ban.
€750bn (£620bn) stability package
failed to entirely alleviate concerns
around Greece, Spain and Portugal.
The EC, which has promised to bring
in legislation by October, welcomed
the communiqué and said “concrete
proposals” on short-selling would be

In a joint letter to European
Commission president José Manuel
Barroso, Chancellor Angela Merkel
and President Nicolas Sarkozy said
resurgent volatility raised “legitimate
questions” around credit default
swaps and short-selling.
They said: “In the face of recent
developments, we believe the EC
should urgently accelerate efforts to
achieve stricter controls on the mar-
kets for CDS on bonds and short-sell-
ing, and put forward all possible
measures in this area even before the
July meeting of the Economic and
Financial Affairs Council.”
Politicians are desperate to get a
£
published in the summer.
But any indication of hurry will be
greeted with alarm by market partic-
ipants, who criticised Germany for
undermining confidence with its sur-
prise ban on naked shorting and
lashed out at Brussels for its hastily-
assembled hedge funds directive.
Elisabeth Afseth of Evolution
Securities said: “The risk you have is
ONE WAY
the same we had with the overnight
ban coming out of Germany.
Investors will price in regulatory risk
and push yields up further.”
The continent’s woes will be the
focus of a summit of the 27 EU lead-
ers on 17 June.

Spanish banks Portugal: We FLIGHTS FROM LONDON (GATWICK, LUTON & STANSTED)
face repo issues will not take aid
TRAVEL JUNE - JULY
▲

BANKING
SMALLER Spanish banks are losing
access to the European repo market
due to concerns Spain could be head-
ing for a debt crisis along the lines of
EU partner Greece.
The repo market is wary of smaller
Spanish lenders because of their real
estate losses and because they can
only offer Spanish government
bonds as collateral.
ECONOMY
PORTUGAL’S Treasury chief ruled out
drawing on the Eurozone aid pack-
age, citing a successful bond sale and
a strong economic recovery in the
first quarter, which the statistics
agency revised upwards.
Treasury Secretary Carlos Pina said
the sale of €1.5bn (£1.3bn) in two bond Book until midnight 10.06.10. Subject to availability. Terms and conditions apply, see Ryanair.com for details.
maturities “confirmed the confi- Fares exclude optional fees/charges.
dence investors have in Portugal”.
CITYA.M. 10 JUNE 2010 News 7

Ed Miliband: I
Irish banking would keep the
cash calls off 50p top rate
POLITICS

▲
to good start
BY DAVID CROW
LABOUR leadership contender Ed
Miliband yesterday said he would
make the 50p income tax rate perma-
nent if he became Prime Minister.
The former energy minister indicat-
Bank of Ireland’s chairman Pat Molloy led the successful rights issue Picture: PA ed there would be no return to the pro-
FINANCIAL SERVICES €3.4bn recapitalisation drive, which business days of New Labour if he wins
▲

BY VICTORIA BATES
BANK of Ireland yesterday sent a wel-
come positive signal to fellow trou-
bled Irish lenders by securing a strong
94.6 per cent take-up for its €1.7bn
(£1.4bn) cash call.
The success of the bank’s 3-for-2
rights issue, which was at a price of
€0.55 per new share, a 41.7 per cent
discount to the theoretical ex-rights
price, paves the way for similar
actions later this year from Allied
Irish Bank and Bancassurer Irish Life
& Permanent. Bank of Ireland is led
by chairman Pat Molloy.
The Irish government, which holds
a 36 per cent stake in Bank of Ireland,
took up its full €600m quota of rights.
The proceeds of the rights issue
form a large part of Bank of Ireland’s
also included an institutional plac-
ing, a debt for equity swap and the
conversion of some state preference
shares into ordinary equity. The bank
has now comfortably exceeded the
seven per cent equity tier one capital
ratio target set for it by the govern-
ment, with a ratio of eight per cent.
The move means that Bank of
Ireland has escaped majority state
ownership – a feat unlikely to be
repeated by Allied Irish, which needs
to plug a much larger capital short-
fall of €7.4bn. Bank of Ireland will use
some of the proceeds to pay back war-
rants from the Irish government.
The rights issue was fully under-
written by Citigroup, Credit Suisse,
J&E Davy, Deutsche Bank and UBS,
which placed the rump later on in
the day yesterday at €0.75 per share.
CHRIS WILLIAMS
CREDIT SUISSE
ADVISING Bank of Ireland on its
rights issue were a pairing of Irish
boutique IBI Corporate Finance, the
bank’s retained financial adviser, and
the big-hitters at Credit Suisse in
London.
Leading the team for Credit Suisse
in London was one of its top bankers
Chris Williams, the firm’s vice presi-
dent of investment banking for the
EMEA region. Williams has certainly
been busy lately, having been one of
just four senior Credit Suisse emis-
saries sent to advise Prudential on its
aborted bid for AIA. He originally
joined the bank last year from rival
Citigroup, where he co-headed the
financial institutions group.
He was joined by colleagues Robert
Mayhew and Edward Griffin, both
directors in investment banking.
Over at IBI, which employs just 25
people in comparison to Credit
Suisse’s 48,000-odd global staff, joint
managing director Tom Godfrey led
the advisory team. Godfrey has been
advising Bank of Ireland for the past
two years, including on its €3.5bn
recapitalisation.
the party’s top job, despite claiming
the 50p rate was a temporary measure
while in office.
“I would keep it in place because it
ensures a fair contribution from peo-
ple who earn in a year what many peo-
ple earn in a decade,” he said.
Miliband’s comments came as nom-
inations for leadership closed, with
left winger Diane Abbott winning a
surprise place on the ballot paper.
The MP for Hackney becomes the
first black person to contest the posi-
tion, after a raft of late nominations
pushed her past the threshold of 33
MPs.
She will fight for the leadership
against former foreign secretary David
Miliband, Ed Miliband, former chil-
dren’s secretary Ed Balls and Andy
Burnham, the former health secretary.

CITY VIEWS: SHOULD PRUDENTIAL MANAGEMENT BE FORCED TO RESIGN?

ARIF MALIK |
BARCLAYS
“The management must be held
responsible for the AIA situation. If
Prudential’s shares were in demand
JUSTIN CUNNINGHAM |
GILES INSURANCE BROKER
“The Prudential management should
take some level of responsibility for
the failure of the deal,
Interviews by Emma Sadowski Pru shareholders bicker
OTIBA SHEIKH |
UST GLOBAL
“Prudential management should not
over who should resign
have to resign. Certainly they made a
bad decision, but that’s about it. Thiam and McGrath have begun
▲

INSURANCE
then they should not but as to their resignation and Everybody does at meetings with top shareholders as
INSTITUTIONAL investors are bicker- they seek to pacify investors enraged
have had a problem allowing a new some point. Are ing over which Prudential head they over the “bungled” handling of the
with the rights team to come we asking people want on a plate as shareholder deal to acquire AIG’s Asian arm.
issue but for it to in and clear up in the public serv- anger grows after the group’s Another large shareholder who
botched $35.5bn (£25bn) bid to buy will meet Thiam this week said: “If
reach this stage the mess, ice to resign AIA. investors want someone’s head on a
now, senior fig- I am not when they have There is some momentum behind plate, it should be the chairman’s. For
ures are partly to entirely sure of made mistakes? a move to oust Prudential chief execu- him to agree for his chief executive to
blame. It may be that.” No, we are not.” tive Tidjane Thiam, but some large take a job at Société Générale at the
shareholders said chairman Harvey beginning of this whole exercise was
a better idea to McGrath’s position is even harder to just crass judgement.”
have a whole defend than his CEO’s. But other large investors still say
new man- “If someone has to go, it should be the buck stops at Thiam’s door.
the chairman and not the chief exec- “Subject to what we hear this week,
agement utive,” said one top-20 investor, Thiam’s position is getting increas-
in place.” speaking on condition of anonymity. ingly untenable,” said another.
 8 News
Morgan Stanley
man defects to
Barclays Asia
BANKING
▲
BY STEVE DINNEEN
A TOP Morgan Stanley banker has
defected from the firm’s Asia-Pacific
M&A unit to take up a senior job at
rival Barclays.
Edward King is expected to join
Barclays’ Asia-Pacific arm this sum-
mer after stunning bosses at Morgan
Stanley with his resignation.
Samuel Kim and Peter Ding, both
senior bankers within the same divi-
sion, will take on new roles as the co-
heads of Asia Pacific M&A, a company
spokesman told City A.M.
King is a veteran banker with the
US bank and has been involved in
some of its most high-profile M&A
work in the region.
He oversaw PetroChina’s £3.44bn
takeover of part of Australian energy
firm Arrow and AIA’s £2.15bn sale of
its Taiwanese insurance arm.
King’s departure is the second
Morgan Stanley defection to Barclays.
Last year its head of Asia Pacific invest-
ment banking Matthew Ginsburg took
up the same role at Barclays.
IG Group buoyed
by volatile forex
and equity markets
FINANCIAL SERVICES
▲
BY HARRY BANKS
BRITAIN’S largest spread-betting com-
pany, IG Group, said it will report an
underlying profit for 2010 up by a
quarter, helped by increased volatility
in forex and equity markets.
The company, which takes spread
bets on financial markets – allowing
customers to benefit from falling as
well as rising prices – said it had ben-
efited from unstable markets in the
last few weeks of the year, boosting
client activity and the rate of new
accounts opening.
IG said it expects to report an
underlying pre-tax profit of £157m
for the year ending 31 May, up from
£125.9m last year, and ahead of ana-
lyst expectations.
Group revenue is expected to be 16
Edward King (inset) has swapped Morgan Stanley’s Asia unit for Barclays per cent higher at £298m, helped by a
Santander reclaims
Mexican operation
BANKING Chairman Emilio Botin said:
▲
BY OLIVER SHAH “The acquisition reinforces
Santander’s commitment to
SANTANDER could look to expand Mexico, a country with a very posi-
further in the US after buying tive outlook for growth, and fur-
back Bank of America’s quarter thers the geographic
share in its Mexican division, an diversification of our group.”
analyst said yesterday. But Jean Sassus, a Paris-based
The Spanish juggernaut paid analyst at Raymond James, said
$2.5bn (£1.7bn) in cash for the 24.9 the end of Santander’s relation-
per cent stake it sold to its North ship with Bank of America would
Caroline-headquartered counter- clear the way for the European
part for $1.6bn in 2003. The confi- player to further extend its reach
dent move brings Santander’s into North America.
ownership close to 100 per cent He said: “If you split from Bank
and is expected to boost the com-
pany’s earnings per share by 1.3 Santander Emilio
per cent from the first year.
The transaction, due to be com- Botin said buying
pleted in the third quarter, will back its Mexican unit
pump up Mexico’s contribution to would boost earnings
Santander’s overall earnings from 1.3 per cent per share
five per cent to seven per cent.
A winner emerges from the crisis
RECESSION? What recession? geted emerging market economy
Santander might be the biggest so far this year, accounting for 65
lender in Spain, which has suf- per cent of deal activity, with
fered one of the steepest housing Brazil and Peru a distant second
downturns in the world – but it is and third on 26 per cent and nine
showing no signs of slowing its per cent respectively. And this is
frenetic acquisition spree. Already by far the biggest of the lot so far
in pole position to snap up the this year – and the third largest in
RBS branches that are on the the last twelve months.
block, it has now bought Bank of Santander’s management
America out of its Mexican busi- expects a negative impact of
ness for $2.5bn. around 31 basis points on its core
It’s a shrewd move, allowing capital ratio, which it can easily
the Spanish bank to expand in withstand. Its Tier 1 ratio is 8.8
fast-growing Mexico with the per cent and its operations are
minimum of fuss. The central well-diversified (Spain accounts
American nation is a hot property
at the moment; it is the most-tar-
for just 25 per cent of operating
profits).
CITYA.M. 10 JUNE 2010
65 per cent hike in revenues at its
Australian business and UK revenues
– its largest market – seen rising by
eight per cent to £165m.
“The final quarter, despite starting
with low levels of volatility, showed
strong revenue growth, up 24 per
cent on the corresponding period of
the previous year,” the group said in a
trading statement yesterday.
ANALYSIS l IG Group
440 p 431.80
9 Jun
430
420
410
400
390
380
370
360
210
15 Mar 6 Apr 26 Apr 17 May 7 Jun
of America, it makes your intru-
sion or your entry into some parts
of the US market easier because
you’re not competing against your
own shareholder any more.”
Sassus said Santander could
either build on its Sovereign sub-
sidiary, which provides retail bank-
ing on the east coast of the US, or
forge a new brand to tap into the
Hispanic market in California and
the south west.
Santander offloaded the quarter
share in its Mexican arm seven
years ago due to bolster its capital
base in the face of steeply falling
currencies in Brazil and Argentina.
The sale was part of $7bn of asset
divestments in Latin America and
Europe between 2002 and 2003.
Shares in Santander had risen
3.9 per cent to €7.6 by late after-
noon yesterday.
Outside of Asia, Mexico is the
place to be; significant growth
and pension and investment fund
expansion is just around the cor-
ner, while profit margins will
only improve now the country has
exited recession.
There are few banks that have
emerged from the financial crisis
unscathed, and even fewer that
have enhanced their reputation.
Everyone likes to back a winner,
making these shares a strong buy.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
 The Capitalist
10
HSBC STAFF
MOVE INTO
RITZY NEW
CHINA DIGS
MORE Far Eastern joy for HSBC chief
Michael Geoghegan, who relocated to
Hong Kong earlier this year as part of a
drive by the bank to up its focus on Asia.
Geoghegan yesterday cut the ribbon on
the bank’s swanky new China HQ, located
in a shiny tower at the heart of the
Shanghai finance complex.
The new digs are as all-singing and all-
dancing as you’d expect, with glass, steel
and pre-approval for a gold certificate in
energy and environmental design.
They’ve also got a pair of the bank’s lion
sculptures sitting outside – a custom
which has been taken up by HSBC head-
quarters all over the world, including
Canary Wharf, after their inception in
1923. (The lions, whose paws are tradition-
ally rubbed for good luck by passers-by,
were then nicknamed Stephen and Stitt
after two of the bank’s senior managers.)
But best of all for the firm’s staff, the
headquarters occupy 22 floors of the 53-
storey tower, directly below the über-
swanky Ritz Carlton hotel, complete with
fine dining restaurants, ballroom, spa and
the full works.
“We’re all hoping they’ll look kindly on
their neighbours when it comes to dis-
The Zoological Society of London (ZSL) is a charity devoted
to the worldwide conservation of animals and their habitats.
Registered Charity in England & Wales: no 208728
Passers-by have been rubbing the paws of the HSBC lions for good luck since the 1920s
count rates,” whispers one HSBC insider,
happily.
GOD’S WORK
Joke of the day, courtesy of Mark Aedy, the
head of EMEA investment banking at
Moelis. Speaking at a roundtable event yes-
terday on the future of the European
restructuring industry, Aedy took the
chance to whip out a clever gag about the
positioning of his company’s headquar-
ters, located just opposite St Paul’s
Cathedral, at the expense of Goldman boss
Lloyd Blankfein.
“I can’t go as far as to say we’re doing
God’s work,” he quipped, “but we’re cer-
tainly sitting at the right hand of God.”
CITYA.M. 10 JUNE 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Best of all
for the firm’s
staff, the new
HQ occupies
the floors
directly
below the
Ritz-Carlton
right), the financier who caused a stir in
hotel” the City last year when he disappeared
after former clients claimed he owed them
money. Levene later reappeared saying he
had simply attended the Priory for treat-
ment for gambling addiction.
I hear he kept very low-key at his first
outing back on the social scene, watching
the show and sipping his drink quietly.
STUD MUFFIN
All the best to Rakshit Ranjan, the insur-
ance analyst who last week resigned from
TITS ON A STICK
A touch of good fortune for Citi, which is
Execution Noble to start up at Lloyds currently subject of a lawsuit from the
Banking Group – though he might want smokin’ hot Debrahlee Lorenzana (left)
to take a piece of advice on board. over in the States. Lorenzana, you remem-
When emailing work contacts, it’s usu- ber, claims unfair dismissal because her
ally advisable to use a bog-standard email bosses thought she was “too gorgeous”.
address rather than one you set up for Now, though, some genius has
fun – which, in Ranjan’s case, was a unearthed a past documentary about
rather amusing “Rak.Stud@...” plastic surgery featuring Lorenzana,
who’s actually had two boob jobs, lipo-
suction and a mini tummy tuck.
IN THE LIMELIGHT “I love plastic surgery,” she gushes in
Spotted on Tuesday at a Royal Ascot the film. “I wanna look like a [Playboy]
fashion show and preview night in Playmate... I wanna be tits on a stick!”
Knightsbridge: Nick Levene (top Surely that won’t help her case?
There is an easier
way to get into
the Zoo for free...
FREE
This voucher entitles one person
to free entry to ZSL London or
Whipsnade Zoo when accompanied
by a full paying adult. Valid for any
ZOO *
day in June. Offer expires 30th
June 2010.
ENTRY
Please complete the details below prior
to your visit in order to validate the offer.
Name:
email:
Please tick if you do not wish to receive further offers and news from ZSL.
Terms and Conditions
✁
Please note this voucher is not valid for Zoo Nights at ZSL Whipsnade Zoo on Friday 25th June.
Free Zoo ticket is only valid on entry with a full paying adult ticket. Only one free person
allowed per voucher. Offer is subject to availability. You must produce a valid voucher at the
main entrance to be eligible for the Free Zoo ticket and will need to be surrendered upon entry. *On entry with a full
The offer is valid for either ZSL London Zoo or ZSL Whipsnade Zoo but can only be used once.
Offers are valid until 30th June 2010 unless stated otherwise. Photocopied or defaced vouchers paying adult.
will not be accepted. Acceptance of this voucher is strictly subject to ZSL London and
Whipsnade Zoo's own terms and conditions and deemed accepted on admission. Offers may
be withdrawn or subject to change without notice. Exchange or sale of this voucher is
prohibited. Voucher value 0.00001p. An adult is 16 years or over. This voucher must be used
at the time of purchase and is not valid for any pre-booked tickets. This voucher cannot be used
in conjunction with any other promotion, offer, third party payment method, individual or
group discount. In the event of a full price and concessionary adult ticket being purchased
together, the higher adult price must be paid for.
zsl.org
 %ULGLH7XFNHU
$VVHPEO\7R\RWD0DQXIDFWXULQJ8.

:HśUHVRFRPPLWWHGWRTXDOLW\ZHśYHLQWURGXFHG
D\HDUZDUUDQW\RQDOORXUQHZFDUV

2QHZD\,WDNHUHVSRQVLELOLW\WRJXDUDQWHHTXDOLW\
LVE\SXOOLQJWKH$QGRQFRUGZKLFKUXQVWKHHQWLUH
OHQJWKRIWKHSURGXFWLRQOLQH

-XVWOLNHWKHIDFWRU\PDQDJHULWJLYHVPHWKHSRZHU
WRVWRSWKHOLQHDWDQ\SRLQW7KLVDOORZVPHWR
LQVSHFWWKHFDUFORVHO\HQVXULQJHYHU\FDULVRIWKH
KLJKHVWSRVVLEOHVWDQGDUG

“™–d˜““
˜… d—d‘d˜““
˜…

WR\RWDFRXN

\HDUPLOHZDUUDQW\ZKLFKHYHUFRPHVƪUVWDYDLODEOHRQDOOQHZSDVVHQJHUFDUVRUGHUHGIURPVW-XQH7KLVVXSHUVHGHVDQ\SUHYLRXVRƩHUV

 12 Economic News CITYA.M. 10 JUNE 2010

Shadow MPC
CITY A.M. | SHADOW MPC
ALLISTER HEATH | CITY A.M.
“The money supply is growing at an accelerated rate and the economy is expanding at a decent, but still slug-

votes to keep gish, pace. With inflation too high, it is time for a symbolic hike in rates, whatever happens at the Budget.”

SIMON WARD | HENDERSON

“Raise by 0.25 per cent. Negative real rates have depressed money demand, resulting in excess liquidity that has
pushed up nominal growth and inflation. The MPC must start normalising rates if it is serious about the target.”

policy on hold GEORGE BUCKLEY | DEUTSCHE BANK

“Despite inflation above target it is too early to think about raising rates, particularly with the markets and
economy in a fragile state. We expect the first tightening by the end of the year but moves will be gradual.”

MICHAEL SAUNDERS | CITIGROUP

UK ECONOMY from the severe fiscal tightening.
▲

BY JESSICA MEAD
UNCERTAINTY ahead of the emer-
gency Budget and ongoing stagna-
tion in the Eurozone, the UK’s largest
trading partner, justifies monetary
policy staying on hold this month,
according to a majority of City A.M.’s
Shadow Monetary Policy Committee
(MPC).
Coming ahead of the Bank of
England decision, scheduled for mid-
day today, seven out of the nine com-
mittee members voted to keep
interest rates at 0.5 per cent and
quantitative easing at £200bn.
But Henderson’s Simon Ward and
City A.M.’s Allister Heath both proved
more hawkish, calling for a rise in
interest rates. In Ward’s view, the
Bank of England needs to raise the
cost of borrowing by 0.25 per cent if
it is serious about meeting the infla-
tion target of two per cent.
Those who voted for no change
pointed to the need for loose mone-
tary policy to cushion the economy
They also expect that the slack in the
economy would bring inflation rates
down from their current highs.
Only the Institute of Directors’
Graeme Leach explicitly said he
would lean towards more QE after
the Budget on 22 June.
The Bank of England is not expect-
ed to make any change to monetary
policy this month. It has not budged
on interest rates since March 2009.
But the stubbornly high rate of
inflation is creating a headache for
the MPC. It is now aware that the
Retail Prices Index (RPI) shot up to 5.3
per cent in April, a 19-year high,
while the CPI rose to 3.7 per cent.
With a Barclays survey showing
that inflation expectations rose
sharply in the second quarter, some
members of the MPC, who have
already expressed concerns about
inflation, may become more vocal in
their views.
We will get a breakdown of the
vote in the meeting minutes, which
will be released on 23 June.
“No change ahead of the extra fiscal tightening. Provided inflation expectations are not destabilised, the MPC
are likely to keep rates on hold for the rest of this year to cushion the economy against fiscal tightening.”
VICKY REDWOOD | CAPITAL ECONOMICS
“The MPC should hold fire. Some are arguing that the rise in inflation requires an interest rate rise. But
the slack in the economy should pull inflation down sharply before long.”
TREVOR WILLIAMS | LLOYDS TSB
“No change, especially with the full austerity measures yet to be announced. Although inflation is high, it will
fall back in the medium-term, especially given the downside risks to growth emanating from the Eurozone.”
HOWARD ARCHER | IHS GLOBAL INSIGHT
Hold on interest rates and QE. If the forthcoming Budget is very tough, monetary policy needs to remain
loose to support the still fragile recovery. And the Eurozone's problems pose a threat to UK growth.
JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“Markets expect the Bank not to move this year. Even allowing for the downside risks due to problems in the
Eurozone, above-target inflation and robust near-term growth should force the MPC’s hand before 2011”
GRAEME LEACH | IOD
“The MPC is likely to remain on hold with no change in interest rates or QE. The more interesting call will be
in July after the emergency Budget and another month's money supply data. I lean towards more QE then.”

Britain’s trade deficit widens but firms Finland back in recession

are benefiting from the weak pound despite rise in exports
UK ECONOMY
▲

BY JESSICA MEAD
DISRUPTION from the volcanic ash
cloud and weakness in the Eurozone
widened Britain’s gaping trade deficit
in April, official figures from the
Office for National Statistics (ONS)
indicated yesterday.
The trade deficit in goods and serv-
ices widened to £3.3bn from £3.2bn
in March, as a result of a fall in the
services surplus to £4bn from £4.1bn
the previous month. The goods trade
deficit remained broadly unchanged
at £7.3bn.
The ONS said disruption to air trav-
el caused by the volcanic ash cloud
would have had an impact on both
exports and imports to non-EU desti-
nations. However, the impact on trade
with EU countries is assumed to be
negligible since a relatively low pro-
portion of that trade is carried by air.
However, there were some encour-
aging signs. The jump in imports of
basic materials and semi-finished
manufactures shows that the manu-
facturing sector is recovering, said
Alan Clarke at BNP Paribas.
There were also signs that the weak
pound is starting to be felt although
analysts noted that this was being
used to bolster profit margins rather
than make foreign currency prices
more competitive.
EUROPEAN ECONOMY
FINLAND has succumbed to a double-
dip recession after it suffered a fur-
ther two quarters of economic
contraction in the six months to
March, official statistics confirmed
yesterday.
The Finnish economy had contract-
ed between October 2008 and July
2009 before growing in the third
quarter of last year. However, the
Scandinavian economy shrank by 0.2
per cent in the final three months of
the year. Yesterday’s data, which
revealed a 0.4 per cent contraction in
the first quarter of 2010, confirmed a
dreaded double-dip.
This is in spite of a recovery in the
Eurozone member’s trade balance,
which rose seven per cent from a
year earlier in April. This resulted in
the country’s first trade surplus in
six months.
CITYA.M. 10 JUNE 2010
Nomura hires RBS strategist
BANKING
▲
BY OLIVER SHAH
NOMURA, Japan’s largest brokerage,
has made its latest high-profile hire
by poaching Benito Berber from state-
owned Royal Bank of Scotland as an
emerging markets forex strategist.
Berber is on gardening leave and
will start in the coming months, it is
understood. He follows in the foot-
steps of ex-RBS colleagues Steve
Ashley and Chris Fleming, who
joined Nomura in May. The Japanese
company also hired Michael Hill and
FCPT agrees
to a merger
with UKCPT
PROPERTY
▲
BY EMMA SADOWSKI
TWO of Britain’s property trusts have
announced a proposal to merge creat-
ing the sixth largest trust of its kind
in the UK in a union valued at £1.6bn.
Board members of F&C
Commercial Property Trust (FCPT)
and UK Commercial Property Trust
(UKCPT) have agreed on merger terms
that are expected to entice new
investors.
The tie-up will be done through a
scheme of reconstruction, which will
see FCPT absorbed by UKCPT.
FCPT shareholders have the option
to receive new UKCPT shares or to
elect to receive 91p in cash per share.
Friends Provident and Phoenix
Group, which collectively own a 50.3
per cent stake in FCPT have already
backed the sale, which cannot go
through until it receives independent
shareholder support.
But FCPT manager, F&C REIT, said
it was “disappointed” by the move
upon receiving a six-month notice
James DeNaut from Deutsche Bank to
jointly head up its natural resources
team earlier this month.
Nomura is hungry for staff as it
continues its evolution from a Far
Eastern player to a global franchise.
The business is understood to be look-
ing for 60 more investment bankers
in the US by the end of the year, as
well as 200 equities analysts around
the world.
A source close to Nomura said the
brokerage was seeing remarkably low
levels of employee churn since buying
Lehman Brothers’ European opera-
that will terminate its contract with
FCPT.
“We are disappointed to have been
served with notice given the contin-
ued strong performance of the portfo-
lio under F&C REIT's management,”
said a statement from the group.
Analysts said the combined portfo-
lio will give 60.5 per cent weighting to
London and the South East, while 51
per cent will be focused on the retail
property market, while 36 per cent
will focus on offices and 14 per cent
will be industrial
FCPT’s John Stephen will assume
the role of chairman of the new
seven-member board, while UKCPT’s
Chris Hill will become deputy chair-
man.
The new structure will see three
FCPT board members transfer over to
the newly merged group and will
result in the resignation of Keith
Dorrian from UKCPT’s board.
Shareholders are expected to vote
on the merger proposal in August,
with both companies in need of 50
per cent approval.
tion 18 months ago. For example,
turnover levels in its fixed income
division are around four per cent,
which may necessitate redundancies
in the medium term.
Referring to a policy operated by
rivals such as Goldman Sachs, the
source said: “It’s a case of ‘up or out’.”
In contrast, 83 per cent-govern-
ment owned RBS haemorrhaged
more than 1,000 traders from its glob-
al banking and markets unit last year
as talented workers rejected the pay
limits and stigma attached to the tax-
payer bailout.
RUSSIA BECOMES LARGEST OIL PRODUCER
RUSSIA overtook Saudi Arabia to become the world’s leading oil producer in 2009, while
global oil consumption fell the most since 1982, BP has said. According to the oil giant's
latest Statistical Review of World Energy, Russia increased oil production by 1.5 per cent
in 2009, claiming a 12.9 per cent market share.
S&P will fight for trade if
US adopts new regime
▲
FINANCIAL MARKETS
STANDARD & Poor’s suggested yester-
day his rating agency would not lose
business if the US creates a board to
match rating agencies with debt
issuers.
President Deven Sharma said: “We
will have to go to investors and con-
vince them that, ‘Look, you still want
a rating from us.’ We’ll have to work
harder to get those mandates from
Picture: REUTERS
News 13
the investors and from the issuers
directly.”
US lawmakers are crafting final
legislation to revamp financial regu-
lation and will soon decide whether a
credit rating agency board needs to
be created so a third party can choose
which rating agency would rate an
issuer’s debt. The Senate proposal is
designed to increase competition in
the industry dominated by Standard
and Poor’s, Moody’s and Fitch.
Barrick Gold
joins the
FTSE 100
▲
UK ECONOMY
BY STEVE DINNEEN
THE updated FTSE 100 list was
announced last night, with African
firm Barrick Gold and Indian oil and
gas giant Essar Energy both muscling
into the big time.
The London Stock Exchange and
embattled holiday group Thomas
Cook both took the plunge into the
FTSE 250.
The additions to the list makes the
FTSE 100 even more of a multination-
al affair after mining firms such as
Kazakhmys, Vedanta Resources and
Fresnillo all leading the foreign
charge in the late 1990s.
The FTSE also updated its 250 list,
with media giant Trinity Mirror,
music retailer HMV and Brewin
Dolphin all high profile losers. Also
dropping out of sight were JP Morgan
Japanese Investment Trust, F&C Asset
Management, Dunedin Income
Growth Inv Trust, Ecofin Water and
Power Opportunities and Melrose
Resources.
Newly floated SuperGroup joined
the prestigious list, as well as JD
Sports Fashion, Promethean World,
Centamin Egypt, BH Macro, Fidelity
China Special Solutions and CPP
Group.
 14 Consumer News CITYA.M. 10 JUNE 2010

JD Sports sales
rise thanks to
Zara owner sees
the World Cup
Like-for-like
sales rose
4.1%, in the
18 weeks from
profits surge after
31 January
to 5 June
global revenues rise
▲

RETAIL
JD Sports said yesterday its sales have
received a lift in the build up to the
World Cup in South Africa.
In the 18 weeks from 31 January to RETAIL per cent in the first quarter but we

▲
5 June, like-for-like sales rose 4.1 per That was up don’t know the currency impact for
BY JOHN DUNNE
cent. from the 2% sure I think the market will be
That was up from the two per cent increase reported ZARA owner Inditex yesterday posted pleased.”
increase reported after the first 10 a 14 per cent rise in sales for the three Cash-rich Inditex has picked up
weeks of the period. after the first months to the end of April. market share in Spain, which
The rise was fuelled by a clamber 10 weeks of Europe’s biggest clothing retailer accounts for a third of sales, during an
for World Cup merchandise and the period saw net profits jump 63 per cent to economic downturn in which many
other related products. £248.4m smaller clothing stores have gone out
Sports store sales growth shot to 5.1 Zara, which also owns Bershka, has of business.
per cent from three per cent, while opened 98 outlets in the period.
fashion store sales were down 1.2 per Inditex bounced back after almost ANALYSIS l Inditex
cent, improving from a 3.5 per cent Sports store sales two years of recession and said sales 50 € 47.19
decline. growth accelerated worldwide had increased 13 per cent 49 9 Jun
The company said that profit mar- from the start of its financial year in 48
gins had been “encouraging”.
to 5.1% from 3%, February to 7 June. 47
Profits for this year are likely to hit while fashion store Inditex said it would kick-off inter- 46
£70m, according to forecasts – a huge sales were net sales for Zara on 2 September in
45
rise from the £5m being made five Germany, Spain, France, Italy,
years ago.
down 1.2% Portugal and Britain. 44
Chairman Peter Cowgill said: “This Anne Critchlow, analyst at Société 43
is famous last words, but we’ve not Générale, said: “It looks to me as
had a bad week this year.” though like-for-like sales were up five 15 Mar 6 Apr 26 Apr 17 May 7 Jun

Asos aims for £1bn

3 0 T H J U N E / 1 S T J U LY 2 0 1 0
R O YA L H O R T I C U LT U R A L H A L L S , L O N D O N as web sales thrive
RETAIL tomer base and the migration of for maxi-dresses and skirts, shorts,
▲

BAHRAIN K U WA I T OMAN Q ATA R SAUDI ARABIA UA E spending from the high street to Wellington boots, sunglasses and
BY JOHN DUNNE

Doing Business in the Gulf?

ONLINE fashion retailer Asos plans
to invest £40m in its capacity after
reporting a 44 per cent annual
profit rise yesterday.
The company is aiming to grow
into a £1bn business within the
next five years.
It has signed a lease on a 1.2m sq
ft warehouse in Barnsley as part of
the strategy.
Asos targets internet-savvy 18-34
year olds looking to copy the
designer looks of celebrities like
the internet.
The company has also undertak-
en an expansion into overseas mar-
kets with the US, France and
Germany among the countries tar-
geted.
Chief executive Nick Roberts
said: “A lot of our customers are
less hit by the downturn because
they are so young.
“They are really interested in
what they will be wearing on
Friday and Saturday nights which
is where we come in.
clogs for the summer music festi-
val season.
The firm plans to launch a US
website in September and sites for
France and Germany will follow
later in the year.
The new warehouse, which will
replace an existing operation in
Hemel Hempstead, will have initial
capacity for £600m of annual sales
after an investment of £20m this
year.
It will be fully operational by
mid 2011, under the company’s

✓ The Gulf States offer great

Kate Moss, Sienna Miller and Alexa
Chung but at a fraction of the
price.
Asos has defied the recession,
opportunities to British business benefiting from a young core cus-
“The business is growing and we
hope to hit the £1bn mark as we
expand our capacity.”
The company said recent trade
has been stoked by robust demand
expansion blueprint. Asos made a
pre-tax profit of £20.3m in the year
to 31 March – bang in line with
analysts’ consensus forecast, from
£14.1m in 2008-09.

✓ Everything you need ANALYST VIEWS: WILL ASOS’ SUCCESS CONTINUE? Interviews by John Dunne

JEAN ROCHE | MATTHEW MCEACHRAN |

to know about doing business &

“ “
PANMURE GORDON SINGER CAPITAL MARKETS

investing in the Gulf States Asos has delivered a better-than-

expected set of preliminary results. Current trad-
Results are slightly ahead of expecta-
tion and comments show confidence in both the
ing is very strong and the company has revealed platform and future growth initiatives. Given the

• Free Exhibition • Free Seminars plans to develop a large warehouse, which has
future capacity of over £1bn, taking it toward its
stated aim of achieving £1bn sales in five years
backdrop and continuing growth overseas, we
expect little change to forecasts. We remain mar-
ginally ahead of consensus. Asos plans to launch

• Free Networking time. We reiterate our buy rating and 735p price local US, German and French sites later this year.

” ”
target. Operating costs of £72.8m were better There is optimism in the international market.
than we forecast, mainly because of Overall the news should be well
Supported by: Sponsored by: lower staff costs. received.

KEITH BOWMAN | HARGREAVES LANSDOWN

Pre-Register for FREE entry at

“ They’re certainly strong results. Market consensus before was on the strong hold side – you will see some forecasts
upgraded and the company has announced further investment already in its international sector.

”
www.gccbritainexpo.com Many of their customers being so young are outside the full impact of the credit crisis. Young people tend to go online even
before they go to the high street, that is the direction things are moving in. The caution has overcome the valuation – as
is the case with some tech based companies. But this company seems to be performing strongly.
Gjoe!zpvs!esfbn
qbe!po!uif!jQbe/
Wjfx!uif!nptu!eftjsbcmf!qspqfsujft!xjui!zpvs
gjohfsujqt/!Jotubmm!pvs!gsff!bqq!opx/

Uif!npsf!sfßofe
qspqfsuz!tfbsdi
jQbe!jt!b!usbefnbsl!pg!Bqqmf!Jod/
 16 News CITYA.M. 10 JUNE 2010

Former tech chiefs JPMORGAN IN CHINESE JOINT VENTURE

JPMORGAN Chase,

vie for government

lead by chief execu-
tive Jamie Dimon,
unveiled a joint
venture with
Chinese state-
owned First
Capital Securities
executive of eBay cleared the first yesterday, which is
▲

US POLITICS
round of votes to stay in the race to the latest move by
TWO former silicon Valley chief exec- replace the controversial Arnold global investment
utives are challenging for top politi- Schwarzenegger as governor of the banks to exploit
cal jobs in the US. embattled state. She will run against China’s booming
Republican Carly Fiorina, the for- Democrat Jerry Brown, who has previ- capital markets.
mer Hewlett-Packard boss, is running ously held the post. The venture will
for a seat in the US senate. She beat The Republican pair now face an underwrite initial
off other candidates to win the right uphill battle to persuade California’s public offerings in
to run against incumbent Barbara moderate electorate that they have Shanghai and
Boxer for the California seat. the best solutions to the state’s finan- Shenzhen.
And Meg Whitman, former chief cial turmoil.

Misys shares
surge on £1bn
Allscripts sale
▲

TECHNOLOGY
BY STEVE DINNEEN
SOFTWARE giant Misys yesterday saw
its stock rocket by a fifth after
announcing it will part with its US
healthcare joint venture for a stagger-
ing £1bn.
Misys sold most of its 55 per cent
stake in Allscripts for £900bn, in a
deal that paves the way for Allscripts
to complete an long-mooted merger
with arch-rival Eclipsys. Misys will
maintain a 10 per cent interest in the
new entity.
Shareholders rejoiced after the
software firm said it would return
almost £700m of the proceeds to
them through a tender offer for their
shares.
The sale was led by French M&A
veteran Philippe Cerf at Credit Suisse.
The deal has been welcomed by
analysts. Roger Phillips at Evolution
Securities said the joint venture was
“highly overvalued” and say the sale
represents “major shareholder
value”.
George O’Connor at Panmure
Gordon echoed the sentiments, say-
ing Misys “wins kudos” for selling the
stake.
Since the Allscripts-Misys merger
closed in October 2008, Allscripts
shares have risen by around 50 per
cent. Misys, which has a market cap
of £1.23bn, is now aiming to increase
revenue by up to eight per cent over
the next two years. It says it will now
concentrate on its banking software
division.
The good news was greeted by the
appointment of Stephen Wilson as
chief financial officer. Wilson joined
Misys in 2009 as vice president of
group finance. Before this he worked
at IBM for over 25 years where he
became vice president and chief
financial officer for IBM UK.
ANALYSIS l Misys
270 p
249.00
9 Jun
250
230
210
15 Mar 6 Apr 26 Apr 17 May 7 Jun

Blinkx software Autonomy in

to change web CA acquisition
▲

TECHNOLOGY
BLINKX, the world’s largest video
search engine, yesterday launched
new software it says will revolutionise
browsing video on the net.
The services will offer users imme-
diate access to blinkx’s massive
library of over 35m hours of video
within their web browser. Blinkx
founder Suranga Chandratillake said:
“These four add-ons will change the
way users interact with their browser
and video on the Web. As the web
moves increasingly towards video,
our goal is to make finding that video
as simple, seamless and integrated a
process as possible.”
TECHNOLOGY
CAMBRIDGE-BASED software firm
Autonomy yesterday said it will buy
CA Technologies Information
Governance unit for an undisclosed
sum.
The acquisition is not expected to
have a material impact on
Autonomy’s 2010 revenue, profit or
cash flow.
Neil Araujo, chief executive of
Autonomy unit iManage said: “The
combination of Autonomy with CA
will further strengthen Autonomy’s
solutions for the legal, regulatory and
investigative markets.” The deal is set
to close in the third quarter.
CITYA.M. 10 JUNE 2010
Two 48-hour
Tube strikes
to hit London
TRANSPORT
▲
BY EMMA SADOWSKI
LONDONERS are facing severe travel
disruptions after rail union RMT
announced two 48-hour strikes by
Tube Lines maintenance staff starting
later this month.
Tube Lines workers, which cover
maintenance of the Jubilee, Piccadilly
and Northern lines, will walk off the
job from 23 to 25 June and 14 to 16
July.
The strike is likely to affect the
entire London Underground network
as Tube Lines also owns an emergency
response team that oversees urgent
repairs across all lines.
“We have given Transport for
London [TfL], and their newly-
acquired subsidiary Tube Lines, plen-
ty of opportunity to give us
assurances that staff won’t take the
hit for the failure of the doomed pri-
vatisation project,” said RMT general
secretary Bob Crow.
RMT members voted 90 per cent in
favour of a strike last week on the
back of concerns over job security, pay
and working conditions once TfL
completes its acquisition of Tube
Lines at the end of the month.
TfL said the matter had nothing to
do with London Underground or its
drivers and that disputes between
Tube Lines and its workers over pay
BT braces itself for staff action as
impasse with its workers continues
TELECOMS
# !
▲
BY STEVE DINNEEN
BT EDGED closer to its first strike
 
action in more than 20 years yester-
day as the impasse between the tele-
existed before the decision to take
over the maintenance group.
A TfL spokesperson said: “We
strongly urge RMT leadership to call
off the threatened strike action and
to enter proper dialogue with us after
our acquisition of Tube Lines.”
London Mayor Boris Johnson sig-
naled yesterday that he and TfL have
come up with a contingency plan to
reduce maintenance disruption on
the Northern Line, which currently
suffers from daily closures as it under-
goes its upgrade.
The Bank branch of the Northern
Line will be closed between
Kennington and Camden, and the
High Barnet branch north of East
Finchley will close from around 9.30
pm between Monday and Thursday
from 5 July.
Johnson said: “This is the first sign
that we are close to an escape from
the dastardly confines of PPP.”
RMT general secretary Bob Crow and
London Mayor Boris Johnson are locked in a
bitter dispute over the proposed walk-out
year after seeing pay frozen in
2009 – which analysts say BT is
unlikely to match.
BT yesterday tabled an improved
offer of a two per cent rise this year
followed by three per cent next year
Focus on Industrial Action
Tim O’Toole will join FirstGroup next month
Former underground boss
to take helm at FirstGroup
TRANSPORT
▲
BY EMMA SADOWSKI
FORMER London Underground boss
Tim O’Toole will takeover as chief
operating officer of FirstGroup after
the bus and rail firm appointed him
to the role yesterday.
O’Toole, who will step into the role
next week, will also become the
group’s deputy chief executive in
preparation for the retirement of cur-
selves from this. They claimed
instead the firm would “take a
more structured approach to
insourcing” by employing fewer
third-party organisations.
The CWU is still to vote on
17
Unite warns
of yet more
BA walkouts
▲
AVIATION
BY EMMA SADOWSKI
UNITE, the union representing strik-
ing British Airways (BA) cabin crew, is
preparing to launch a fresh strike bal-
lot that could affect travel in July.
The union warned yesterday that
preparations for a new ballot were at
an advanced stage and would be
launched if no agreement with BA is
reached.
A new ballot is likely to take six
weeks to carry out, meaning that if
Unite is successful, one of BA’s
busiest periods will be hit by strike
action.
Len McCluskey, Unite assistant
Picture: REX general secretary, said: “Comments
[by BA’s management] about ‘holding
out’ for as long as it takes against the
workforce should cause despair
among BA board and shareholders.”
A spokesperson from BA said the
airline is available at anytime for
talks.
BA crew returned to work this
morning after completing the final
day of a 15-day strike period.
rent boss Sir Moir Lockhead. ANALYSIS l British Airways
It is thought that O’Toole will have 260 p 192.90
an initial salary of £550,000 plus 9 Jun
bonuses. 240
He is widely respected for his time
at the helm of London Underground,
but also as president of Consolidate 220
Rail Corporation in the US.
The news comes as UK bus, Ireland 200
and Germany director Nicola Shaw is
stepping down from FirstGroup’s 180
board. 15 Mar 6 Apr 26 Apr 17 May 7 Jun

coms giant and its workers dragged
    
on.
Members of the Communication
Workers’ Union (CWU) have reject-
ed two BT pay offers and have
vowed to walk out if the firm does
not meet their demands.
Talks between the two sides are
ongoing but the CWU is demand-
ing a five per cent wage hike this
WHAT WILL HAPPEN IF THERE IS A BT STRIKE?
Q. HOW OFTEN DO BT WORKERS
GO ON STRIKE? Q. HOW
ME?
IS IT GOING TO AFFECT
A. A.
Not very often. BT workers
have not voted for strike
action in more than 23 years –
before the company was privatised
in 1984.
Q. WHO EXACTLY MAY BE GOING
ON STRIKE?
A. Members of the
Communication Workers’
Union have voted in favour of pos-
sible strike action. These are the
“blue collar” BT workers, mainly
consisting of engineers and call
centre workers.
but CWU bosses branded this “unac-
ceptable”. There is now a stalemate
that looks destined to end in the
first walk-out of BT staff since it
was privatised in 1984.
Reports emerged that BT had
offered to cancel offshore call-cen-
tre contracts, largely based in
India, to appease the union but
company sources distanced them-
The disruption to customers is
likely to be minimal.
Although BT supports a vast net-
work that provides phone lines
not only for its own customers but
also the likes of TalkTalk, the sys-
tem is largely self sustaining. A
walkout of a few days is unlikely to
bring the system crashing down.
Q. SOFORWHAT
BT?
IS THE PROBLEM
A. BT’s business will be hit by the
strike as they will not be able
to connect any new customers,
   
whether to strike or take action
%
short of a walk-out, which could
include a “work to rule”, where
staff refuse to carry out duties not
listed in their contracts or work
any overtime.
Last year BT slowed its revenue
decline to just two per cent but the "  

$  !
%
firm still faces a £5.7bn pension
deficit.
upgrade existing
ones or fix any
Q&A   

$  !
broken lines. They
risk losing customers who cannot
get repair work done. Offer available 14/06/10 - 09/07/10 from the A La Carte Menu
(subject to change), not available Al Fresco, subject to availability
Q. DOREPAIRING
PHONE LINES NEED
OFTEN?
and bookable only online at offthewallrestaurant.co.uk
A. Not really. BT says lines only
need to be repaired every 15
Lunch is served 12:00 - 14:30
7- 9 Copthall Avenue, London, EC2R 7NJ
years. But with a network the size
of BT’s this is still a lot of work.
Reports that emergency services
could be at risk if their phone
lines are damaged, are unlikely as
special provisions will be made to
ensure such services are covered.
 18 News
Hitachi reassures on UK trains Honda rocked by its third
Gaku Suzuki, head of Hitachi’s
▲
TRANSPORT
train business, said: “This project is to
BY HARRY BANKS replace 30-year-old trains, and we
HITACHI, Japan’s biggest electronics don’t expect the project itself to be
maker, said yesterday it expected to scrapped. There will probably be
keep train orders from the UK govern- some modifications due to the
ment worth £7.6bn despite admitting change in the government, but we
modifications to the agreement were believe we can still do it.”
likely. A spokesperson clarified that while
A consortium led by Hitachi was parts of the deal may be cancelled, it
chosen as a preferred bidder for the was unlikely to be entirely annulled.
deal last year, but its shares have suf- Hitachi has been caught up along
fered in recent weeks due to specula- with rival French and German bid-
tion the project to build and service ders in worries that a number of
1,400 InterCity trains would be can- potentially rewarding contracts in
celled or delayed under the coalition the US, Latin America and Europe
government’s austerity measures. could be under threat as govern-
Agbank gears
up for world’s
largest IPO
moment, as the company has yet to
▲
BANKING
go on its roadshow to potential
BY HARRY BANKS
investors, and yet to release the for-
THE Agricultural Bank of China mal prospectus.
(Agbank) has been given the go-ahead The so-called cornerstone investors
by Chinese regulators for what could are expected to be signed this week,
be the world’s largest share flotation. ahead of Monday’s premarketing
Agbank is planning to sell a stake period, with sources saying that such
of 14 per cent in a dual listing that buyers could take as much as 40 per
will see its shares join both the cent of the Hong Kong offering –
Shanghai and Hong Kong stock roughly one-third more than is typi-
exchanges. cal. That surplus can be attributed to
The listing is expected to raise at the size of the offering and the diffi-
least $17.6bn (£12.2bn), but could culty it is facing in a down market.
reach as high as $30bn, say analysts. It is widely expected that AgBank
The current record amount raised will get the okay from Hong Kong’s
in a share flotation is $21.9bn. listing committee today. If so, the
This was set in 2006 by fellow lender will start pre-marketing on 14
Chinese lender Industrial & June and kick off the formal market-
Commercial Bank of China. ing roadshow on 24 June. AgBank
Sovereign funds, including China plans to list in Shanghai on 15 July
Investment Corp, Qatar, Kuwait and and in Hong Kong on 16 July.
Temasek, are seen as likely buyers of Yesterday’s listing approval, while
pre-IPO stakes in AgBank, along with largely procedural, brought a degree of
Dutch group Rabobank, which just certainty back to AgBank’s fundraising
signed China’s third-largest lender. plans, after local media cast doubt on
AgBank is pushing for a valuation whether it would move ahead as
of 1.6 price to book, which would planned in the next few weeks.
place the size of its IPO at about A senior Agbank executive dis-
$23bn to $25bn, around $5bn to $7bn missed reports that AgBank’s state
less than it originally hoped. shareholders were pushing it to post-
The eventual size of the offering, pone its fundraising plans due to the
however, is anyone’s guess at the relatively weak market conditions.
CITY MOVES | WHO’S SWITCHING JOBS
Investment Management Association
The trade body has appointed a number of
industry heavyweights to its board of directors,
including AllianceBernstein chief executive
Claude A Chene; Richard Kushel, the vice chair-
man of BlackRock Investment Management;
and Campbell Fleming, head of distribution at
Threadneedle Asset Management.
Current chairman Douglas Ferrans (pic-
tured), from Invista Real Estate, is to hold the
position for another two years.
Howell was appointed chief execu-
Evolution Group tive of Evolution’s investment manage-
The investment banking group has ment subsidiary, Williams de Broë, in
appointed Philip Howell as a director of February this year. He joined from
the group, effective immediately. Fortis Private Banking, where he had
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
ments reassess their spending plans.
Shares Hitachi fell yesterday, drop-
ping 1.4 per cent to $37.73 in New
York trading.
Investors appear to have been con-
cerned at the cautious wording of
Hitachi’s statements, which suggest-
ed parts of the UK contract could be
scrapped.
Gaku Suzuki, head of
Hitachi’s train business,
says that the project
replacing 30-year old
trains would go ahead
BEST OF THE BROKERS
ANALYSIS l Novartis
59
CHF
52.65
9 Jun
57
55
53
51
15 Mar
NOVARTIS
6 Apr 26 Apr 17 May
Citigroup gives Novartis a “buy” rating but
warns that the commercial opportunity for
drug Gilenia could be restricted by FDA
safety concerns. Citi said its forecasts for
sales of $780m by 2014 do not seem con-
servative and the appeal of the stock is the
above-average earnings per share growth
and low valuation.
AIM-listed Western Coal pays £54.4m
for Energybuild to invest in Welsh site
▲
ENERGY
WESTERN COAL, the AIM-listed com-
pany with interests in Canada and
the US, has bought Energybuild, the
owner of the Aberpergwm colliery in
Wales, for £54.4m.
Western Coal already owns 55 per
cent of its smaller AIM sibling, and
will take the remainder through a
scheme of arrangement which will
been regional chief executive since
2005 and was also a member of the
management board. Prior to that, he
spent 24 years at Barclays.
Conduit Capital Markets
The derivatives and securities dealer
has appointed Anke Richter as execu-
tive director of investment grade credit
strategy, Julie Pertuiset as an executive
director in the debt capital markets
team and So-Hee Lee and John Shue to
its fixed income sales team as a vice
president and executive director
respectively.
Richter was formerly head of capital
markets research and corporate credit
at French bank Credit Agricole.
China strike in four weeks
▲
AUTOMOTIVE
A THIRD strike in four weeks hit
Honda’s Chinese suppliers yesterday,
fuelling concerns that unrest among
workers in the world’s manufactur-
ing hub is spreading.
Japan’s second largest automaker
said a strike and production stoppage
had begun yesterday at a factory in
Guangdong province that supplies
locks to all four Honda factories in
China.
However, progress was made at
ANALYSIS l SABMiller
2100
p
1,927.00
9 Jun
2000
1900
1800
15 Mar
SABMILLER
6 Apr 26 Apr 17 May
JP Morgan Cazenove has issued SABMiller
with an “overweight” rating and said the
drinks group has underperformed its
European brewing peers. JP Morgan said it
sees the shares continuing to mark time in
the short-term. JP Morgan views this as an
opportunity to review the long-term case,
which it continues to see as compelling.
To appear in Best of the Brokers email your research to notes@cityam.com
see Energybuild shareholders receive
0.0833 shares in the merged entity for
every share held.
Energybuild’s Aberpergwm site has
a proven coal reserve of 6.8m tonnes
and resources of 36.9m tonnes, with
all its production going to the Corus
steel mill at Port Talbot.
Western Coal chief executive Keith
Calder said: “Acquiring 100 per cent
of Energybuild fits in with our value
Pertuiset and Shue also join from
Credit Agricole, while Lee was at
Fieldstone Stone Capital.
FinnCap
The institutional broker and corporate
adviser has established a new oil and
gas team across research, corporate
finance and sales.
As part of the development, oil and
gas analyst William Arnstein has joined
the company, having previously worked
at Jefferies and Dresdner Kleinwort.
Man Group
The alternative asset manager has
hired Tim Fitch as a senior relationship
manager in its UK institutional sales
CITYA.M. 10 JUNE 2010
another factory supplying Honda
exhaust systems, with management
and striking workers reaching agree-
ment and resuming production late
yesterday, according to Honda unit
Yutaka Giken. The latest walk-out
comes amid growing labour disputes
in China’s Pearl River Delta, a fast-
growing and densely populated man-
ufacturing hub home to hundreds of
foreign-owned factories. Honda
spokesman Yoshiyuki Kuroda said the
automaker expected no disruption so
far with sufficient inventory for now.
ANALYSIS l Northern Foods
p
45.25
65
9 Jun
60
50
40
15 Mar
NORTHERN FOODS
6 Apr 26 Apr 17 May
Northern Foods delivered 2010 results
marginally higher than consensus expecta-
tions, according to Royal Bank of Scotland
(RBS), which said that the underlying earn-
ings per share are up 8.4 per cent. With the
stock now trading at a 9.8 per cent divi-
dend yield, it continues to look attractive to
RBS, which issued a “buy” rating.
accretive strategy. With a tremendous
coal resouce base on which to build,
we believe applying our considerable
technical and financial strength will
help develop the project faster and
achieve shareholder value sooner.”
A spokesperson said employees at
Energybuild could expect investment
rather than redundancies.
Western Coal shares closed 22.5p
higher at 310.5p.
Edited by Victoria Bates
team.
Fitch joins from Axa Investment
Managers, where he was director of
single strategy hedge fund sales. He has
also previously been senior European
marketer at KBC Alternative
Investment Management and market-
ing director at GMP Asset
Management, a European event-driven
single manager.
M&G
The investment manager has appointed
Stephanie Ramos as deputy head of
corporate communications.
Ramos joins from Threadneedle,
where she was head of PR for the UK,
Europe, Asia and the US.
CITYA.M. 10 JUNE 2010
Get ready for a flood of debt restructurings
CITY COMMENT
BEN GRIFFITHS
W
ITH continued volatility in
world markets expected to
continue for at least the next
two years, many companies
are going to find it necessary to
restructure their borrowings as debts
reach maturity. While this presents a
Denton votes for US tie-up
▲
LEGAL
BY ROGER BAIRD
PARTNERS at City law firm Denton
Wilde Sapte and its US rival
Sonnenschein Nath & Rosenthal
voted in favour of a merger yesterday
that will create a business with sales
of £500m employing 1,400 lawyers
worldwide.
The management at both firms
asked their partners to vote on the tie-
up that was negotiated in secret and
challenge to borrowers, it is an oppor-
tunity for restructuring advisers, with
many forecasting a rush of work in the
months ahead so long as macro-eco-
nomic conditions appear unlikely to
bailout companies.
Many of the corporate finance deals
that were cut during the leveraged
buyout boom will shortly come to
maturity and expectations are that the
costs of refinancing will be much high-
er this time around, piling pressure on
businesses already struggling to meet
their repayments. According to
research from Standard & Poor’s, there
has been a big rise in the number of
requests for amendments to loan
covenants in the corporate leveraged
loans market during the first quarter
only revealed to their staff two weeks
ago.
The deal needed 75 per cent
approval, but was passed unanimous-
ly among the partners at both firms.
The enlarged company will become
SNR Denton on 30 September.
Current Denton chief executive
Howard Morris and Sonnenschein
chairman Elliott Portnoy will become
the co-chief executives of SNR
Denton.
Morris said: “We are delighted that
of 2010. This is expected to increase
going forward, while refinancings are
likely to be done at higher cost to bor-
rowers and on stricter loan to value
terms.
Restructuring expert Matthew Prest
at investment bank Moelis & Company
says: “Continued market volatility will
challenge companies’ ability to refi-
nance as debt maturities loom. There
will be further focus on high quality
credits meaning the air will get pretty
thin at the sub-investment grade end
of the spectrum. Companies need to
be ready to move quickly to take
advantage whenever there is positive
market sentiment to issue new equity
or debt because the window of oppor-
tunity may shut again very quickly, as
our partners have recognised and
embraced the unique opportunity
presented by SNR Denton. With a
strong client-service culture at both
firms, our integration provides us
with the opportunity to have lawyers
working together seamlessly on
shared clients.”
The enlarged firm plans to anchor
its integration around a number of
the key banking clients they share
such as HSBC, RBS Securities, JP
Morgan Chase and Citibank.
we have seen recently.”
So how should borrowers approach
a restructuring? If companies cannot
do a deal with their lenders they could
be forced to offload assets through an
initial public offering, for example,
and hope they can realise decent value
from the original investment. Or per-
haps private equity can be persuaded
to come in and refinance the business.
The only alternative appears to be
going to lenders and saying they are
prepared to pay back a loan but at a
lower rate of interest or over a longer
term. Stronger creditors will be able to
pull it off but weaker ones will be
reliant on their existing lenders
because they cannot refinance so
lenders will be seeking more equity in
Goldman Sachs is sued by hedge
fund over subprime mortgage deal
▲
BANKING
AN Australian hedge fund is suing
Goldman Sachs over an investment in
a subprime mortgage-linked security
that hastened the fund’s demise in
2007.
The lawsuit, filed yesterday, accuses
Goldman of misrepresenting the
value of the notorious Timberwolf
collateralised debt obligation.
News 19
return for extending a higher rates.
If things start to go really sour, some
experts reckon that could force
lenders to swallow discounts of 30 to
50 per cent of the original loan terms –
potentially meaning they have to write
off hundreds of billions of dollars.
Yet for their part, lenders are now
more confident and are less prepared
to take a haircut when it comes to
restructuring debt. Instead they are
more prepared to just take the keys to
an asset. The people who own all this
debt are either asleep at the wheel or
hoping things will be better when the
time comes for the debt to come to
maturity. They must wake up now to
avoid disaster in the months ahead.
ben.griffiths@cityam.com
Basis Yield Alpha Fund is suing
Goldman to recoup the $56m it lost
on the CDO, according to a lawyer for
the fund, Eric Lewis.
The 36-page complaint, seeking
$1bn in punitive damages, repeats a
Goldman executive’s description of the
Timberwolf CDO as “one shitty deal.”
Goldman called the suit “a mis-
guided attempt by Basis ... to shift its
investment losses to Goldman Sachs.”
 20 News
Shell set for
2011 move to
Canary Wharf
PROPERTY
▲
BY MARION DAKERS
ENERGY company Shell is set to move
half its London staff to temporary
offices in Canary Wharf next year,
after it signed a 15-year deal with
Songbird Estates yesterday.
It will lease ten floors of 40 Bank
Street from Songbird, a wholly-owned
subsidiary of the Canary Wharf
Group (CWG), with the opportunity
to rent additional floors later.
Shell will initially pay £37.50 per sq
ft, valuing the first year of the deal at
over £7m. It has the option to break
its tenancy after ten years.
George Iacobescu, chief executive
of CWG, said: “We are delighted to
welcome a world leading occupier
such as Shell to Canary Wharf. This is
a worthy addition to the increasingly
Germany turns
down Opel’s
request for aid
▲
AUTOMOTIVE
GERMANY’S economy minister
Rainer Bruederle said yesterday he
had rejected a bid by carmaker
General Motors for state aid for its
European unit Opel.
Bruederle said he took his decision
after a steering committee assessing
the aid request failed to reach a unan-
imous position, adding that he was
convinced GM had enough money to
complete an overhaul of Opel.
Opel, which owns the UK Vauxhall
unit, wanted loan guarantees of more
than €1bn (£900m) from Germany.
diverse range of occupants.
“The letting is also a demonstra-
tion of the continuing attraction of
our high specification office space
and flexible approach in meeting
occupier’s needs”.
Around 1,600 Shell staff will move
to Canary Wharf during the last quar-
ter of 2011, while it redevelops its UK
base at Shell Centre Tower near
Waterloo.
Shell is currently seeking a develop-
ment partner for the project.
James Smith, chairman of Shell UK,
said: “Shell Centre is our home in
London. We want to redevelop it to its
full, modern potential in keeping
with the continuing development of
London’s South Bank.”
Shell will join American law firm
Skadden, lawyers Allen & Overy and
ANZ Bank at 40 Bank Street.
Genzyme and Icahn Florida lawyer sentenced
to 50 years for $1bn fraud
abandon proxy row
BIOTECHNOLOGY
ACTIVIST investor Carl Icahn has
abandoned his proxy fight at
Genzyme in return for the biotech-
nology company’s acceptance of two
of his representatives to its board.
The agreement comes a week
before the company’s annual meet-
ing on 16 June.
Icahn had nominated himself and
three allies to Genzyme’s board after
a manufacturing crisis lead to short-
ages of two of the company's life-sav-
ing drugs.
Genzyme has agreed to appoint
Shell will pay £37.50 per sq foot for its first year
two Icahn representatives – Dr. Steven
Burakoff and Dr. Eric Ende -– and in
return Icahn will withdraw his slate
and vote his shares in favor of the
company’s nominees.
“I think overall this is a positive,”
said Michael Obuchowski, chief
investment officer at First Empire
Asset Management, which owns
Genzyme’s shares and oversees nearly
$4bn in assets.
“It avoids a continuing confronta-
tion with Icahn and provides more
oversight over the direction the com-
pany takes.”
THE WORLD CUP
AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72” screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
202 BISHOPSGATE,
EC2M 4NR 020 7283 1763
INFO@BOISDALE-CITY.CO.UK
WWW.BOISDALE.CO.UK
Picture: Micha Theiner/City A.M.
▲
CRIME
SOUTH Florida Ponzi scheme master-
mind Scott Rothstein was sentenced
to 50 years in prison yesterday for an
investment fraud that bilked clients
out of more than $1bn.
The sentence was more than the
40 years federal prosecutors had rec-
ommended for Rothstein, a dis-
barred lawyer who pleaded guilty to
racketeering and fraud conspiracy
charges in January. He had faced up
to 100 years in prison but his lawyer
had asked US District judge James
Cohn to give him no more than 30
years.
Rothstein, 47, fled to Morocco as
CITYA.M. 10 JUNE 2010
NEWS | IN BRIEF
Germany buys Swiss tax data
Germany has purchased a new disc with
Swiss banking data relating to suspect-
ed tax dodgers, the Finance Ministry
said yesterday. “What we're looking at
are 20,000 sets of data, which, along-
side names and addresses, also have
account details and internal details,”
ministry spokesman Michael Offer said.
Offer said the federal government had
purchased the data along with the state
of Lower Saxony after the information
had first been rejected by Baden-
Wuerttemberg. Offer declined to say
what had been paid, though German
media reports said the disc had cost
€185,000.
Viacom declares first dividend
Viacom declared its first quarterly divi-
dend yesterday and reinstated a stock
repurchase program, addressing ques-
tions about how it would invest its extra
cash. Viacom, the only major US media
company that had not been paying a
dividend, set a quarterly dividend of 15
cents a share. The owner of film studio
Paramount Pictures along with cable TV
networks such as MTV and Comedy
Central also announced plans to buy
back up to $4bn of its stock. It suspend-
ed its repurchase program in early
2009. The moves return some of its
cash to shareholders after several quar-
ters of improving results. The dividend is
the first Viacom has paid as a stand-
alone company following its split from
CBS Corp in 2006.
his fraud scheme imploded in late
October, apparently lured by the fact
that the country has no extradition
treaty with the US. He voluntarily
returned to Florida in early
November, however, and has been
jailed since he surrendered to the
FBI in December.
He was charged under a statute
often used to prosecute organised
crime chiefs. Court documents have
said Rothstein acted with co-conspir-
ators to carry out the $1.2bn scheme,
creating false bank documents that
conned investors while providing
“gratuities to high-ranking members
of police agencies” in order to
deflect law enforcement scrutiny.
 Investment
Equities should avoid more declines
Although growth expectations have been
revised lower, a double dip is not on the cards
RESEARCH DIRECTOR, FOREX.COM
JANE FOLEY
W
HAT started as an acknowledge-
ment from Greece that it had
been living way beyond its
means has since turned into a
universal re-appraisal of the risks of sover-
eign default in Europe. After Greece, the
bond markets of Spain and Portugal were
next to be re-examined. More recently
French and Dutch yield spreads have
widened against German bunds. Investors
have shown themselves less inclined to
finance the debt of countries that are not
prepared to exercise budgetary prudence
and governments have been forced to sit
up and listen. The rhetoric of last week-
end’s G20 meeting made it clear that
expansionary fiscal policies were off the
agenda and that fiscal consolidation has
become the new watchword across the
western world.
Fiscal consolidation in the UK has just
been launched. The main British political
parties were careful to avoid much detailed
discussion about the huge budget deficit
ahead of last month’s general election. Now
safely in office, the new coalition has been
quick to let voters know the extent of deep
public sector spending cuts are inevitable
and will be “felt for decades”.
The UK is not the only industrialised
country that has budgetary woes. The US is
in a similar position and market forecasts
suggest the deficit could be 9 per cent of
GDP this year. However, the US has stronger
growth. A Bloomberg survey shows the con-
sensus for US 2010 growth at 3.2 per cent
compared with 1.1 per cent for the
Eurozone in 2010 and 1.2 per cent for the
UK. The US fiscal repair process will not be
fully implemented until next year at the
earliest, whereas Europe will feel the pain
ANALYSIS l Has the correction in risk appetite got further to go?
S&P 500
1,200
1,100
1,000
900
800
700
Jun 2009 Aug 2009 Oct 2009
L]ZgZid\ZiVha^XZd[(#'ig^aa^dcidYVn!YdiXdb#
Forex and other leveraged products involve significant risk of loss and may not be suitable for everyone. FOREX.com UK is authorised and regulated by the Financial Services Authority.
21
| Foreign Exchange
much earlier.
The optimism that fuelled rallies in
stocks and other risk assets through the
better part of last year came to an abrupt
halt in April. Since then, the markets have
had to digest the prospects of a prolonged
period of slow growth in the industrialised
world. The recovery in growth seen in most
developed countries from mid-2009 was
built around huge fiscal outlays. The time
has come for governments to repair their
balance sheets; as Bank of England gover-
nor Mervyn King noted, we are only half
way through the financial crisis.
So the recent downturn in markets is
based on logic. The obvious question to ask
now is whether this correction has further
to go or whether it has gone far enough.
Many of the answers will be found in eco-
nomic data. If the general pace of econom-
ic recovery accelerates, the market would
draw the conclusion that the correction
was overdone.
Despite reassurances this week from
Federal Reserve President Ben Bernanke
that the US economic recovery remains
intact, the market is likely to be sceptical
about the ability of US growth to accelerate
until labour data shows a significant
improvement.
The impact of last Friday’s disappointing
US payrolls number will be difficult to
shake off since the market is incredibly sen-
sitive to signs of a weakening economic
backdrop. German industrial production
growth in April, released this week, was
better than expected at 0.9 per cent. This is
further evidence that the German recovery
is gathering pace. Also, Japanese machines
orders for April were far stronger than
expected. This data suggests that the global
recovery is still in place.
However, the market got ahead of itself
and expected stellar levels of growth this
year. As those high expectations have been
dashed, the markets have had to readjust to
more moderate levels of growth, which has Factory output is IN FOCUS | UK INFLATION
weighed on markets. picking up in Germany
On a positive note it appears that that
most countries will avoid a double-dip Picture: REUTERS UK inflation data may be far higher than the vening period the problem of the UK’s huge
recession and stay on the recovery track Bank of England target, but there is little risk of budget deficit has been widely publicised. Not
this year. While the correction may not be a hike in interest rates this year. Governor King only that, but the new UK coalition government
over, most risk assets should avoid a further
has made it clear that he welcomes fiscal tight- has been busy in the past few weeks warning
ening rather than higher interest rates. As this that the age of austerity is now upon us. The
takes a hold, King’s conviction that excess budget is scheduled for 22 June. Insofar as the
capacity will bear down on prices is likely to be government is apparently committed to deficit
strengthened. Sterling is likely to draw little reduction, the outlook for gilts and the pound
incentive from this week’s policy meeting. The has improved, especially against the euro. Given
Last Price impact on the pound from comments from that sterling is still 21 per cent weaker against
1,074.10 Fitch, the credit rating agency, that the UK’s fis- the euro than its average level of 2007, the
cal challenge is “formidable” lasted little more downside bias in euro-sterling is likely to persist
than one trading session. S&P provided a similar and upticks could be good buying opportunities
warning thirteen months ago and in the inter- for sterling.
Dec2009 Feb 2010 Apr 2010
It’s your world. Trade it.
 22 Investment | Listed Products CITYA.M. 10 JUNE 2010

Worries about
Eastern Europe
are overblown
The region is more resilient to the debt crisis
than you might think, says Jessica Mead

I
N HIS office overlooking the river
Danube, the new Hungarian Prime
Minister Viktor Orban might well be
regretting throwing the fiscal state
of his country into the limelight and
drawing unwanted attention from the
markets.
In hindsight, comments from his
spokesman outlining the gravity of
Hungary’s economic situation and stat-
ing that a default on its debt was possible
might seem rather ill-considered. While
perhaps only designed for domestic con-
sumption, the comments spooked the
international markets, which are already
pre-occupied with debt default in the
Eurozone periphery.
The Hungarian stock market has
dropped some 16 per cent since the start
of April, and has shed over 1,000 points,
or 5 per cent of its value, in the last week.
Both concerns about external debt
financing and the impact of austerity
measures have weighed on the markets.
One of the easiest and cheapest ways
for individual investors based in the UK
to get exposure to Eastern European
stock markets is through exchange-trad-
Hungary’s outlook is ed funds (ETFs).
still rosy ETFs that have exposure to Hungary –
there is no country-specific ETF – have
Picture: GETTY also seen their traded value fall as global
stock markets tumbled. Some ETFs
exposed to the region have experienced
redemptions as investors pull out of riski-
er equities. Consequently, should holders
of these ETFs be worried about events in
Hungary taking a toll on the value of
their investments?
In fact, there are three good reasons
not to be worried. First, Eastern Europe
ETFs tend to have relatively little expo-
sure to the Hungarian stock market.
Lyxor’s Eastern Europe ETF only has 13.63
per cent weighting towards Hungary
compared to 57.36 per cent for Poland
and 29.01 per cent exposure to the Czech
Republic. BlackRock’s iShares MSCI
Eastern Europe 10/40 ETF has only 6.98
per cent exposure to Hungarian equities

Futures Symposium 2010 Benefit from

25-26 JUNE 2010
Cavendish Conference Centre – West End
22 Duchess Mews, London, England W1G 9DT the gold rush
through miners
Join TradeStation for a special two-day futures trading

trading and analysis from

m industry and TradeStation
r e
experts in a
live real-time environment.

Featured Speakers
Fea tur ed Sp eakers
Demand for the physical metal should boost
ST
TANLEY
A DASH NICK McDONALD
V.P
.P. of Applied Te
echnical Strategies for
Afternoon Trrading Strat production this year, writes Juliet Samuel
Analysis, TradeStation
r Secu
Securities Index Futures
u
Introduction to Futures Trrading
radin

A
JOHN PERSON S THE Eurozone lurches from crisis ning to get rid of $1.9bn worth of gold
JOHN CARTER and HUBERT Gaining an Edge in the Futures to crisis, the price of gold hit an all- Gold production has hedges altogether by September 2010.
SENTERS Market Using Seasonal Studies time high this week at $1,250 an been in decline for Added to this is the low marginal cost of
ounce. With many analysts predict- years increasing production – once a mine is
Live Trading
r That
and Analysis Tha
ing a further surge to $1,300 or $1,400, built, it costs little to speed up extraction –
Works MICHAEL BURKE investors are flooding into the gold mar- Picture: REUTERS and gold miners look set to win big from
.P. of Institutional Training,
V.P ket and physical gold-backed ETFs. In the the fear gripping global markets.
MIKE BAGHDADY TradeStation Securities rush, many have overlooked what could In turn, ETFs that track gold mining
Practical Applications of Price Building Effective Trading
radin
r be an even better way to profit from mar- indices have swelled over the past year.
Behavior in Rule-Based Trading
radi
r Strategies with Improveded Te
echnical ket anxiety: gold miners ETFs. ETF Securities’ gold mining fund, which
Not all gold miner shares have done as tracks the Daxglobal gold mining index,
Indicator Visualization well as gold during the recent surge, large- has risen 17.3 per cent over the past year
ly because of a general nervousness about (and 9.4 per cent in the last quarter alone)
TrradeStation.com/CityAM
Register today online at TradeStation.com/CityAM equities. For example, Van Eck Global, a while PowerShares’ Global Gold and
US-based ETF provider, has a gold miners Precious Metals Portfolio has jumped 33
ETF, which is up 10 per cent year-to-date, per cent.
Call toll-free 00800 777 76543 to get all the details during which gold has risen 14 per cent. Meanwhile, with gold miners’ margins
about this valuable two-day TrradeStation event.
eve But there are solid reasons to think gold expanding, Van Eck Global has expanded
mining equities will outperform gold. its gold mining offering and last year start-
For one thing, many miners have seen ed another fund – the Junior Gold Miners

TradeStation Securities
Member NYSE, FINRA, NFA and SIPC
® their costs drop as the markets flee com-
modity currencies. Operators in South
Africa, Australia and Canada have benefit-
ETF. The purpose of the junior version is to
take advantage of smaller mining compa-
nies engaged more in exploration. Van
ed in the last year as their currencies Eck’s Edward Lopez says: “Gold produc-
These are educational workshops designed to demonstrate what we believe are the valuable benefits of weakened against the greenback, in which tion has been in a bit of a decline since
using TradeStation. No offer or solicitation to buy or sell securities, securities derivatives, or futures products
of any kind, or investment or trading advice, recommendation or strategy regarding any security, group of gold is priced. And as long as the recovery 2000-2001 and it’s been hard for gold pro-
securities, market segment or market, is intended, shall be given, or in any manner endorsed by TradeStation remains uncertain, the dollar will contin- ducers to replenish their stocks as the
Securities, Inc. or any of its affiliates. Past per formance, whether actual or indicated by simulated historical ue to strengthen alongside gold. rates of discoveries has gone down.” As a
tests, is no guarantee of future per formance or success. Trading on margin increases risk by magnifying the Further, miners have been preparing for result, “the explorers and recent develop-
extent of potential losses. If you are unsure as to whether or not a par ticular investment is appropriate for
you, you should seek independent advice. Visit www.tradestation.co.uk for additional risk disclosures. an anticipated jump in gold prices by ers are looking for new gold mines to
increasing their sensitivity to the market. establish extra production and because of
This material has been issued by TradeStation Securities, Inc. and approved by TradeStation Europe Limited Traditionally, gold miners have hedged that they are more risky, but they offer a
(an introducing broker to TradeStation Securities, TradeStation Group Inc.’s main operating subsidiar y)
as defined in Section 21 of the Financial Ser vices and Markets Act 2000. TradeStation Europe Limited is against gold to protect themselves from new dynamic in terms of risk and return”.
authorized and regulated by the Financial Ser vices Authority (“FSA A”)
” and has passpor ts under the MiFID the commodity’s high volatility, but in the Gold mining then, can be far from the
Directive 2004/39/EC in all countries in the EEA (except for Romania). past year major producers have been elim- risk-averse outlook of typical physical gold
inating hedges, with Barrick Gold plan- buyers. Much of the recent surge has been
CITYA.M. 10 JUNE 2010
compared to almost 70 per cent for
Russia and 17.57 per cent for Poland.
FUNDAMENTAL PERSPECTIVE
Second, while the sovereign debt crisis
will undoubtedly create headwinds for
the economies in emerging Europe,
there is little reason to be worried
about contagion to Eastern Europe.
Countries in the region seem to be in
a relatively strong position. Poland has
escaped recession and, from a funda-
mental perspective, it remains a sound
credit, says RBS’s head of emerging
markets research Timothy Ash.
He also reckons that the sell-off in
Bulgaria has been overdone: “The
chances of sovereign default over the
next 12-24 months would appear
remote; indeed its public finance pro-
file would appear significantly better
than all existing Eurozone member
states, and much better than the EU
average.”
Third, the outlook for the region is
relatively rosy. The latest projections
from the International Monetary Fund
point to growth of 2.8 per cent this year
and 3.4 per cent in 2011. In its outlook
published today, the World Bank
expects private capital inflows to firm,
which is expected to result in a 1.1 per-
centage point of GDP decline in the
region’s financing gap.
So if you have positions in Eastern
Europe ETFs, you don’t need to be over-
ly worried – at least, not in the near
future – about skeletons in the coun-
tries’ fiscal cupboards having an undue
effect on the stock market.
driven by institutional investors such as
pension funds attempting to back up
their equities with a safe underlying
asset. Of course, as a store of value, gold
is essentially just another currency
dependent upon market confidence.
But at least, as Lopez points out: “It’s the
world’s reserve currency and it’s the
world’s oldest currency. It can’t be mass-
produced – so governments can’t muck
up the value of it.”
And with gold set to rise over the next
year as sovereign debt problems contin-
ue to plague the western world, gold
miner ETFs offer a viable equity alterna-
tive to joining the gold rush.
LISTED PRODUCT NEWS
KATHLEEN BROOKS
Barclays Stockbrokers have World Cup fever
ANALYSIS l MSCI EM Eastern Europe 10-40 Index
6,000
5,000
4,000
3,000
Jun 2009 Aug 2009 Oct 2009 Dec2009 Feb 2010
WORLD CUP COMMISSION PROMOTION
Barclays Stockbrokers is celebrating the
World Cup in South Africa by offering a 4-4-
2 promotion, relating to the famous football
formation. From the evening of 12 June
Barclays Stockbrokers will offer heavy dis-
counts on online trading commissions of just
£4.42 for as long as England stays in the
tournament. This compares with the stan-
dard rate of £6.95-£12.95, and covered war-
rants, turbos and structured products are all
covered by the football-themed commission
rate. The promotional rate also covers stop
Picture: GETTY orders, trailing stop orders and limit orders.
Investment | Listed Products
Source: MSCI Barra
Apr 2010 Jun 2010 Aug 2010
INFLOWS TO ETFS REMAIN STRONG
Last week, net inflows to Eurostoxx 600
ETFs reached $191.8m, even though the mar-
kets remained fragile. ETF investors favoured
the banking sector, where net inflows topped
more than $309m. Industrial goods and serv-
ices were another favourite. In contrast,
healthcare ETFs had net outflows of more
than $50m. Since the start of the year media
sector ETFs have experienced the largest net
inflows of $235m. However, investors remain
in a nervous mood. In total, ETFs that track
the Eurostoxx 600 have seen net outflows of
$327m since the start of 2010.
23
Swiss franc in ascendency Picture: REUTERS
THE
TIPSTER
FRANC STRENGTH COULD
UNRAVEL THE DOLLAR
T
HE US dollar has performed strongly
against the Swiss franc during the
past month as investors worried about
the impact of the European debt crisis
on Swiss trade. Now US dollar-Swiss franc
is approaching a five-year downtrend resist-
ance level at SFr1.1750. The question now is
whether the dollar has gone far enough
against the franc. With the Swiss franc ben-
efiting from safe haven status, combined
with the current strength in the dollar, any
US dollar profit-taking could well be magni-
fied from here. Look to sell on rallies towards
SFr1.1700 for a move towards SFr1.1300.
CMC Markets offers a spread on US dollar-
Swiss franc of SFr1.1521-SFr1.1524.
BP has been in the news for all the
wrong reasons lately and its share price
continues to fall on the back of the Gulf of
Mexico oil spill. Fears about the dividend, as
well as President Obama's undignified tele-
vision rant against the company has not
helped the share price. But BP stock is now
close to five-year lows and could well be
worth looking at as a long-term buy. Look
to buy near five-year lows around 370p-
380p. CMC Markets offers a spread on BP
of 389.75p-390p.
The Dow Jones Industrial Average has
dipped below the 10,000 level once again
and usually this has proved a good buying
opportunity. With a close stop-loss, a buy at
these levels could prove lucrative. Capital
Spreads quotes 9,933-9,935 for the Dow.
US computer chip maker National
Semiconductor announces its quarterly
results this afternoon and analysts are pre-
dicting revenues of $383.7m. The stock has
recently been raised to outperform by
Morgan Keenan, the US-based private client
brokerage, on expectations of revenues
beating current forecasts and the company
providing a positive outlook. The shares
have traded in a range between $13 and
$16 for the past 11 months and are current-
ly sitting just above $13. Spread Co offers a
spread on National Semiconductor Corp of
$13.21-$13.24.
Kathleen Brooks
RBS ISSUES NEW PRODUCTS
Royal Bank of Scotland has recently launched
a range of new structured products. These
include an autocallable on the FTSE 100 and
a range of covered call warrants on BP stock.
This could tempt investors who are attracted
by BP’s low share price, but are worried that
the outlook for the firm could continue to
deteriorate as pressure mounts after the Gulf
of Mexico oil spill, since covered warrants
mean that the most you could lose is your ini-
tial investment. There are also new call and
put covered warrants on the Euro Stoxx 50
index, Barclays and the Dow Jones index.
 City Focus
24 CITYA.M. 10 JUNE 2010

| Careers

Why predictability
can help you to build
up trust and success
FFinancial
inancial m
modelling
odelling rrequires
equires
the ability to identify risk.
Learning w
Learning ith u
with uss
isn’
’t one
isn’t on
one..

G
L MODELLING TRAININ
A
FINANCIA
mprehensivvee
ru n th e w id est and most co UK,
BPP courses in the
ia l M o d
de lling g
range of Finan nc o learn how
e’re
r e h
th e saaf es
fe
f st t choice to
which is whhyy w . Such is theeir su
ccess There’s a time and a place for checking emails, even for the Chancellor Picture: GETTY
qu an ti y
fy ri sk
to analyse and tra ccourses. them is key to your own happiness and
th is ea
ye
y r
ar, w e’ rree runniing 35 ex THESE THINGS I KNOW contentment, no matter how others may
that Tips for getting on in the City act. “Trust arrives on foot and leaves on
horseback.”
3. NOBODY EVER SUCCEEDED ON THEIR OWN
Don’t grab the limelight – it is always a
team effort. Make sure you take pleasure
in others’ success and the part you have
played in helping them. You amplify your
impact by helping others be more suc-
No one gives
No givves yyou
ou
o more
m e choice ffor
mor or
o CCity
ity training. cessful and the team will get a lot more
And
And that’s
that’’s why
why we’re
we’re the City’s
City’’s first choice.
choice. enjoyment from the whole experience.
Remember to say thank you to all those
RICHARD SEXTON who have helped. It is amazing how a lit-
BPP
BPP isis a leading
leading provider
provider of
of professional
professional development
development courses
courses HEAD OF ASSURANCE, tle word of thanks goes a long way.
PRICEWATERHOUSECOOPERS
ranging fr from
ro
om intr
introductory
oductor y through
through to highly
highly specialised 4. IT IS AMAZING WHAT YOU FIND OUT IF
pr
programmes
ro
ogrammes – with o over
ver 20 yyears’
ears’ experience in the industry,
industry, YOU LISTEN
1. FOCUS ON THE THINGS YOU CAN DO
it is clear wh
whyy most City & Financial Ser
Services
vices professionals
proffeessio
essionals SOMETHING ABOUT People generally react in a positive way
Stuff happens in life and business when you show you are actively listening
choose to train with us. and you have to learn to work with to what they are saying. You should never
it. My attitude is that I can’t boil the assume that someone, whoever they are,
ocean but a cup of water is a differ- can’t add to your own knowledge and
ent matter. In today’s difficult eco- understanding. Never assume any conver-
nomic environment this is sation has no value; you just may find
particularly true as you can waste a out that key piece of information is hid-
lot of energy (and sleep!) worrying ing in the most unlikely of places.
about things that you cannot and
will not change, whatever you do. 5. USE TECHNOLOGY, BUT MAKE SURE YOU
Find out more:
Find morre:
e DON'T LET IT USE YOU
2. YOU HAVE TO EARN OTHERS’ TRUST,
0845 226 2422 | www
www.bpp.com/citypd
w..bpp.com/citypd BUT ONCE YOU HAVE IT MAKE SURE Make sure you put your Blackberry away
Ref:: CITY
CITYAM4
YAM4
A YOU NEVER ABUSE IT when you are in a meeting, and pay
attention to the conversation you are hav-
If you are genuine and consistent in ing. Don’t sit there with your laptop
your behaviour and actions others computer on in front of you, your phone
will respond. Some may say pre- or Blackberry on the table and your eyes
Professional
P rof e s s i o n a l dictability is a weakness – I see it as a on the screen. Those emails, calls or texts
Development
Development
ev strength and it certainly doesn’t stop can wait. You owe it to the people you are
Accounting
A c c o u nt i n g Business
B u sine s s & Finance
F i n a n ce Human
H u m an L aw
Law Marketing
Marketing
Management
M a n a ge m e n t Resources
Re source s you from being innovative and chal- with to concentrate on them and what
lenging. Having strong values and they are saying.
ethics and always acting in line with Richard was talking to Jeremy Hazlehurst
CITYA.M. 10 JUNE 2010 City Focus | Careers 25

How to handle office World Cup fever

Make football work for you, says Jeremy Hazlehurst

W
ORKING out how to deal with the
World Cup is tricky. A recent poll by
YouGov found that 23 per cent of
workers said they would take the day
off to watch England play in the World Cup,
while almost half said that being allowed to
watch games in the office would boost morale.
But is that a good idea? What about the loss of
focus – not to mention time? We asked our
panel of experts for their words of wisdom.

surreptitious guilt for a month. But watch the effect on

Ceri Roderick, psychologist, Pearn Kandola
TENSIONS between work and soccer are an inevitability
for a lot of people over the coming month, but it could be
worse. With most kick off times at 4pm or 8.30pm, the
distraction will not be as great as when time zones put big
games in the middle of the night or the middle of the work-
ing day. However, employers would do well to recognise
that people’s minds may be elsewhere. Perks have a dispro-
portionate effect on work morale, and there is a chance
here for employers to win hearts with relatively little dis-
ruption to the working day. Sweepstakes, pundit emails,
shared watching of games (for 4pm kick offs) are all
opportunities for an employer to embrace the madness
rather than kick against it. Soccer fanatics will watch the
key games regardless, so take the chance to turn it into a
benefit in kind rather than have the workforce living with
people who are not soccer fans, they need to be engaged
as well rather than accidentally alienated; try to get every-
one involved or at least make sure that any leniency in
terms of “soccer breaks” is available to all.
Embracing the zeitgeist also gives employers the moral(e)
high ground in terms of establishing ground rules – very
necessary to ensure that whole teams are not psychologi-
cally absent for large periods of time. Drawing clear lines
and expectations will help to ensure that conflicts of atten-
tion are minimised.
Finally, prepare for the psychological effects of individual
game results. Elation, tension, anxiety, depression – even
anger – are all potential outcomes of the favoured team’s
performance and it pays to recognise this in terms of how
people are managed – think about the timing of giving
people good or bad news. Be ready as well for the “come-
down” effect if England do poorly (that would be a good
time to introduce some other positive distraction to avoid
moping affecting work performance) and be ready to
embrace the morale lift if England do well. Such positive
news has an overall enhancing effect on sentiment and
feelings of well being – look for ways to sustain it over a
longer period.
A threat to productivity in the workplace?

Alex Pratt, author of Austerity Business
IT is understandable if the management devil on your
shoulder wants to file everything World Cup in the “too
much hassle” drawer. Surely, the last distraction we
need in austere economic times is to reduce our output
even more, just because of a football game? What next,
close down during Wimbledon? And it sets such an
alarming precedent for the looming prospect of 2012
Olympic duvet days.
Then there's the matter of the non-English members of
staff. Scots have a duty to support England’s opponents
no matter what, but what about other competitors like
France – do they get to watch their own games? And
how about countries which didn't qualify – can they be
denied the chance to watch their own team? The whole
thing is fraught with employment law traps, and that’s
before we even entertain the notion of a few beers in
the office. In a clash of timings – what if more of your
staff want to watch the German match than England,
and get their towels on the remote control first? What
is someone throws a sickie instead of coming in to
watch the game? Your usual “letting the team down,
loss of productivity” argument for disciplinary action
will sound hollow if it amounts to having missed a foot-
ball game.
On the other hand, the leader in you will know that you
can always find plenty of reasons not to do the right
thing, and that the right thing is to grab with both
hands rare moments like these to celebrate and com-
miserate together. Getting more from less needs more
courage, not less. More team bonding, not less. More
laughter, not less. In the age of austerity business,
above all your team needs strong leadership and is fear-
ful of being over-managed in a culture of fear.
If your instinct is to screen and scream for England,
then you’re likely a leader and your team will follow. If
you’re more worried about the “elf and safety” risks of
watching the game together then you should question
whether you’re the right person to be carrying the flag.
Your choice. Who dares wins.
Jane Mann, Fox Williams
THE World Cup can be good for workplace morale, but it
can also create a headache for employers. An employee
who skips work or “throws a sickie” to watch a match
can be disciplined and is not entitled to be paid.
However, employers should not jump to conclusions sim-
ply because an employee has not turned up for work on a
big match day. Ensure that any absence/disciplinary pro-
cedures are followed, employees dealt with fairly and
that suitable warnings are given. Dismissal for a first
“offence” is unlikely to be fair.
It isn’t uncommon for staff to get carried away when
“Engerland” are playing. Office banter can get out of
hand, as shown by a recent court case. One Ms Okerago
was asked by a colleague whether she would be support-
ing England or her own country at the World Cup. When
Ms Okerago responded that she would support her own
country, her colleague told her to go back to her “own
[expletive] country”. The tribunal agreed that Ms
Okerago’s colleague’s comments amounted to direct race
discrimination.
With some World Cup matches having inconvenient kick-
off times of 12.30 and 3.00, many employers will take a
pragmatic approach by allowing employees to watch/lis-
ten to the match at work, provided this does not inter-
fere with time critical matters. Employers may require
football fans to catch up on work at other times to avoid
placing an unfair burden on other colleagues. Some
employers will make a virtue out of necessity by arrang-
ing official screenings. Be conscious of differing alle-
giances in the workplace. Don’t assume it’s the England
matches everyone wants to watch. An informal approach
is probably best.
Finally, what do you do if an employee gets involved in
allegations of football hooliganism at the World Cup?
Offences committed outside of work should not be treat-
ed as automatic reasons for dismissal. It will only be
appropriate to dismiss an employee for hooliganism if the
employee’s actions have had a negative effect on their
business.

Make a world of difference to your career

An MBA from The Open University Business MBAs and Masters-level programmes
School could make a big difference to your
Master of Business Administration
career and to your life. Our triple accredited
MBA Technology Management
MBA programme encourages you to challenge MSc Management and Business Research Methods
limits, cross boundaries and change thinking. We also have a range of online professional
development courses available
What impressed me were the practical
applications of the tools which I still use
today. It changed my whole career direction. I Inspired? Get a prospectus…
came from operations into senior management
and the front end of the business. www.openuniversity.co.uk/mbas
Des Bourne, Director, Kiely Bros 0845 366 6035
We deliver specialist skills you can apply Quote: BALKAB when you call us or go online
straight away in your job, and because we
have students in over 70 countries, learning
INSPIRING LEARNING
with us offers a unique international focus
– helping you take your career forward in
rewarding new directions.

The Open University is incorporated by Royal Charter (RC 000391), an exempt charity in England and Wales and a charity registered in Scotland (SC 038302).
 Markets&Investment
26 CITYA.M. 10 JUNE 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .281.60 +6.40 314.80 216.75 Compass . . . . . . . . . . . . . . . . . .559.50 +16.00 572.00 307.75 Jardine Lloyd Thompson. . . . . . .554.00 +1.50 604.50 393.00 Schroders . . . . . . . . . . . . . . . . .1310.00 +16.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . .107.70* +1.10 114.40 85.25 Cookson . . . . . . . . . . . . . . . . . . .427.70 +8.70 616.00 220.00 Johnson Matthey . . . . . . . . . . .1480.00 –13.00 1814.00 1077.00 Schroders N/V. . . . . . . . . . . . . .1046.00 +9.00 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .986.00* +22.50 1045.00 718.50 Croda Intl . . . . . . . . . . . . . . . . .1024.00 +29.50 1047.00 498.50 JPMorgan Emerg Mkts . . . . . . . .503.00 +12.00 549.00 350.50 Scot. & Sthrn Energy. . . . . . . . .1067.00 +5.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .135.00* –1.10 155.60 111.00 CSR . . . . . . . . . . . . . . . . . . . . . .394.70 +8.00 524.00 320.75 Kazakhmys . . . . . . . . . . . . . . . . 1106.00 +47.00 1634.00 567.50 Scottish Mortgage. . . . . . . . . . . .559.50* +6.50 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1352.00 +28.00 1403.00 833.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .463.10 +2.40 539.00 264.25 Kesa Electricals . . . . . . . . . . . . .102.20 +3.00 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .264.00 +2.90 403.10 250.00
Aegis . . . . . . . . . . . . . . . . . . . . .107.00* +0.60 137.30 79.75 Dana Petroleum . . . . . . . . . . . .1046.00 +7.00 1549.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.00* +2.00 255.00 171.40
Afren . . . . . . . . . . . . . . . . . . . . . .89.80 +3.10 111.00 38.50 Davis Service . . . . . . . . . . . . . . .373.20 –0.10 442.30 307.00 Ladbrokes . . . . . . . . . . . . . . . . .135.10 +1.00 174.97 114.60 Serco . . . . . . . . . . . . . . . . . . . . .619.50 +13.00 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1435.00 +28.00 1435.00 476.25 De La Rue . . . . . . . . . . . . . . . . . .967.00 +24.50 1021.00 808.50 Lancashire Hldgs . . . . . . . . . . . .480.00 –2.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1229.00 +6.00 1258.00 921.00
Alliance Trust . . . . . . . . . . . . . . .313.80 +5.70 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .58.20 +3.15 91.95 53.75 Land Securities . . . . . . . . . . . . . .600.50 +13.00 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .352.70 –0.80 426.50 284.00
AMEC . . . . . . . . . . . . . . . . . . . . .819.00* +11.00 891.00 603.50 Derwent London . . . . . . . . . . . .1302.00* +2.00 1490.00 844.00 Legal & General . . . . . . . . . . . . . .77.65 +2.00 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1426.00 +21.00 1526.00 798.50
Amlin . . . . . . . . . . . . . . . . . . . . .372.30 +3.00 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .138.00 –0.10 148.00 107.75 Lloyds Banking Gp . . . . . . . . . . . .53.47 +1.71 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .108.90 –0.50 146.60 82.25
Anglo American . . . . . . . . . . . .2538.50 +61.00 3015.50 1540.00 Diageo . . . . . . . . . . . . . . . . . . .1091.00 +28.00 1176.00 829.00 Logica . . . . . . . . . . . . . . . . . . . .121.30 +1.80 149.10 70.50 Smith & Nephew . . . . . . . . . . . . .633.00 +8.00 700.50 435.25
Antofagasta . . . . . . . . . . . . . . . .854.00* +15.50 1100.00 546.50 Dimension Data . . . . . . . . . . . . . .98.05 +2.20 105.00 53.75 London Stock Exchange . . . . . . .594.00 –4.50 949.50 589.50 Smiths . . . . . . . . . . . . . . . . . . .1041.00 +20.00 1177.00 649.00
Aquarius Platinum . . . . . . . . . . .359.70 +5.40 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .358.10 +8.50 371.20 192.75 Lonmin . . . . . . . . . . . . . . . . . . .1562.00 +19.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . .1610.00 +43.00 1796.00 1068.00
ARM Holdings . . . . . . . . . . . . . . .274.00 +9.70 274.90 104.00 Drax . . . . . . . . . . . . . . . . . . . . . .347.00 +9.40 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .238.20 +3.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .809.50* +9.50 928.00 493.50
Arriva . . . . . . . . . . . . . . . . . . . . .766.00 +1.00 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .24.82 +0.91 39.75 19.25 Marks & Spencer. . . . . . . . . . . . .335.20* +3.00 412.70 277.75 Spirax-Sarco Eng . . . . . . . . . . .1400.00 +9.00 1591.00 749.50
Ashmore . . . . . . . . . . . . . . . . . . .245.60 +2.70 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .350.40 +5.60 438.40 202.00 Meggitt . . . . . . . . . . . . . . . . . . . . 311.10 +6.30 328.70 151.75 Spirent Comms . . . . . . . . . . . . . .106.90 +2.40 127.80 54.50
Ashtead . . . . . . . . . . . . . . . . . . .105.90 –0.10 128.50 52.00 Easyjet . . . . . . . . . . . . . . . . . . . .402.20 +4.10 499.90 260.00 Melrose . . . . . . . . . . . . . . . . . . .210.00 +0.80 251.50 87.75
Astrazeneca . . . . . . . . . . . . . . .2945.50 +24.00 3136.00 2472.00 Edinburgh Inv Tst . . . . . . . . . . . .391.00 +3.40 412.40 297.50 Mercantile IT . . . . . . . . . . . . . . . .897.00 +21.00 1002.00 716.50 Sports Direct Intl . . . . . . . . . . . . . .95.10 +0.95 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .690.00 +5.00 730.00 513.50 Electrocomponents . . . . . . . . . . .210.00 +0.10 245.00 134.25 Michael Page Intl. . . . . . . . . . . . .378.80 +2.10 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .831.00 +13.00 893.50 481.25
Autonomy Corp . . . . . . . . . . . .1827.00 +59.00 1897.00 1121.00 EnQuest . . . . . . . . . . . . . . . . . . .103.00 +1.90 112.70 87.35 Micro Focus . . . . . . . . . . . . . . . .490.00 +11.40 550.00 300.90 St James’s Place . . . . . . . . . . . . .229.70 +0.10 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1130.00 +3.00 1237.00 661.00 Eurasian Nat Res . . . . . . . . . . . .982.00* +19.00 1276.00 582.00 Millen & Copthorne . . . . . . . . . . .409.40 +15.70 496.30 217.25 Stagecoach. . . . . . . . . . . . . . . . .180.00 +2.30 204.90 114.75
Aviva . . . . . . . . . . . . . . . . . . . . .323.50 +5.80 474.00 274.75 Euromoney Inst Inv . . . . . . . . . . .562.50* –13.00 630.00 191.25 Misys . . . . . . . . . . . . . . . . . . . . .249.00 +25.50 281.70 157.25 Standard Chartered . . . . . . . . . .1621.50 +41.50 1847.00 1115.00
Babcock International . . . . . . . . .573.00 +7.50 660.50 448.50 Experian . . . . . . . . . . . . . . . . . . .610.50 +1.00 664.50 434.00 Mitchells & Butlers . . . . . . . . . . .307.00 +4.50 343.90 221.75 Standard Life . . . . . . . . . . . . . . .178.10 +2.00 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .320.30 — 389.90 294.20 F&C Comm Prop . . . . . . . . . . . . . .92.95 +0.95 96.80 73.50 MITIE . . . . . . . . . . . . . . . . . . . . .229.80 +8.90 281.70 204.25 TalkTalk . . . . . . . . . . . . . . . . . . .124.50 +0.80 147.10 106.60
Balfour Beatty . . . . . . . . . . . . . . .251.40* +1.50 328.85 238.50 Ferrexpo . . . . . . . . . . . . . . . . . . .246.60 +8.00 396.20 112.00 Mondi . . . . . . . . . . . . . . . . . . . . .388.90 +4.90 488.00 182.00 Talvivaara Mining . . . . . . . . . . . .351.60 –1.70 501.50 315.00
Barclays . . . . . . . . . . . . . . . . . . .282.70 +6.15 394.25 255.00 FirstGroup . . . . . . . . . . . . . . . . .378.70 +4.20 448.80 322.75 Monks Inv Tst . . . . . . . . . . . . . . .289.00 +5.00 321.20 222.00 Tate & Lyle . . . . . . . . . . . . . . . . .471.70 +11.00 481.40 284.75
Barratt Development . . . . . . . . . . .96.50 +1.05 193.31 91.80 Foreign & Col Inv Tst. . . . . . . . . .271.80 +2.90 297.20 210.25 Morrison Wm . . . . . . . . . . . . . . .266.70* +4.70 306.30 234.25 Taylor Wimpey . . . . . . . . . . . . . . .29.18 +1.08 54.90 27.40
BBA Aviation . . . . . . . . . . . . . . .184.00 +6.40 220.00 105.00 Fresnillo . . . . . . . . . . . . . . . . . . .982.50 +43.50 989.00 438.00 Murray Intl Tst . . . . . . . . . . . . . . .812.50 +9.50 893.50 575.00 Telecity . . . . . . . . . . . . . . . . . . . .374.90 +0.90 455.00 272.00
Beazley. . . . . . . . . . . . . . . . . . . . 115.00 +2.30 122.00 86.00 G4S . . . . . . . . . . . . . . . . . . . . . .274.10 +3.40 285.70 197.90 National Express. . . . . . . . . . . . .223.90 +5.90 256.80 135.08 Templeton Emrg Mkts . . . . . . . . .535.50 +7.00 598.00 346.50
Bellway. . . . . . . . . . . . . . . . . . . .642.50* +6.50 927.50 591.50 Genesis Emerging Mkts Fd . . . . .451.20 +14.70 484.00 370.00 National Grid . . . . . . . . . . . . . . .484.20* –0.20 607.65 466.71
Berkeley . . . . . . . . . . . . . . . . . . .751.00 –5.00 989.50 716.50 GKN . . . . . . . . . . . . . . . . . . . . . .121.40 +3.00 155.00 67.49 Next . . . . . . . . . . . . . . . . . . . . .2086.00* +44.00 2360.00 1402.00 Tesco . . . . . . . . . . . . . . . . . . . . .402.45* +5.05 454.90 347.40
BG . . . . . . . . . . . . . . . . . . . . . .1064.50 +14.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . . 1162.50* +5.50 1347.00 1027.50 Northumbrian Water . . . . . . . . . .280.90 –0.60 296.30 219.90 Thomas Cook . . . . . . . . . . . . . . .195.50 +4.90 277.20 189.70
BHP Billiton . . . . . . . . . . . . . . .1817.50 +49.50 2346.00 1274.50 Great Portland Estates . . . . . . . .285.60 +5.10 332.10 203.75 Old Mutual . . . . . . . . . . . . . . . . .108.30* +0.50 127.20 71.00 Tomkins . . . . . . . . . . . . . . . . . . .241.10* +3.50 258.50 135.00
BlackRock Mining . . . . . . . . . . . .556.50 +11.50 654.50 346.00 Greene King . . . . . . . . . . . . . . . .381.90 +5.70 504.00 359.50 Partygaming . . . . . . . . . . . . . . . .255.60 –0.40 339.70 213.30 Travis Perkins . . . . . . . . . . . . . . .759.00 +12.50 915.00 461.00
Booker . . . . . . . . . . . . . . . . . . . . .41.38* +1.38 49.50 32.75 Halfords . . . . . . . . . . . . . . . . . . .499.80 +12.80 524.00 299.00 Pearson . . . . . . . . . . . . . . . . . . .928.50 +26.00 1069.00 574.00 TUI Travel . . . . . . . . . . . . . . . . . .217.70 +2.40 313.90 213.80
BP . . . . . . . . . . . . . . . . . . . . . . .391.55* –17.35 658.20 380.50 Halma . . . . . . . . . . . . . . . . . . . . .256.50 +7.00 278.50 169.00 Pennon . . . . . . . . . . . . . . . . . . . .530.50 +3.50 558.00 434.40 Tullett Prebon . . . . . . . . . . . . . . .332.60 +2.40 436.20 261.20
Brit Insurance . . . . . . . . . . . . . . .739.00 +11.00 831.60 709.00 Hammerson . . . . . . . . . . . . . . . .353.00 +5.00 460.30 277.00 Persimmon . . . . . . . . . . . . . . . . .364.20 +4.70 534.50 340.25 Tullow Oil . . . . . . . . . . . . . . . . . 1120.00 +16.00 1375.00 834.50
British Airways . . . . . . . . . . . . . .192.90 +2.50 255.80 117.30 Hansen Trans . . . . . . . . . . . . . . . .86.00 +0.40 163.50 78.00 Petrofac . . . . . . . . . . . . . . . . . .1223.00 +49.00 1294.00 580.00 UK Commercial Prop. . . . . . . . . . .77.30 +0.45 84.90 59.50
British Amer. Tob . . . . . . . . . . .2148.00 –1.00 2335.50 1637.00 Hargreaves Lansdown . . . . . . . .355.70 +0.70 387.00 197.25 Petropavlovsk . . . . . . . . . . . . . .1244.00 +16.00 1370.00 515.00 Ultra Electronics . . . . . . . . . . . .1598.00 +9.00 1678.00 1064.00
British Empire Tst . . . . . . . . . . . .423.90* +5.70 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .96.65 +0.65 119.00 80.00 Premier Farnell . . . . . . . . . . . . . .219.60* +3.60 249.70 121.25 Unilever . . . . . . . . . . . . . . . . . .1892.00* +25.00 2024.00 1419.00
British Land . . . . . . . . . . . . . . . .446.40 +10.10 532.00 353.00 Henderson . . . . . . . . . . . . . . . . .129.00 +1.00 157.80 83.75 Premier Oil . . . . . . . . . . . . . . . . 1153.00 +20.00 1431.00 984.00 United Utilities . . . . . . . . . . . . . .559.50 +7.00 575.00 429.00
Britvic. . . . . . . . . . . . . . . . . . . . .472.40* +2.60 497.70 253.25 Heritage Oil. . . . . . . . . . . . . . . . .421.60 +6.60 630.00 409.80 Provident Financial . . . . . . . . . . .826.00* +11.50 986.00 763.00 Utd Business Media . . . . . . . . . .502.50 +15.50 579.50 364.75
Brown(N.) . . . . . . . . . . . . . . . . . .257.10 +6.30 284.30 204.25 Hikma Pharma . . . . . . . . . . . . . .685.00 +5.00 730.00 412.00 Prudential . . . . . . . . . . . . . . . . . .531.50 +6.00 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .574.00 +10.50 637.50 423.75 Hiscox . . . . . . . . . . . . . . . . . . . .337.00 –0.30 369.30 279.50 PZ Cussons . . . . . . . . . . . . . . . .296.50 +1.50 305.50 169.75 Vedanta Resources . . . . . . . . . .2162.00 +72.00 2967.00 1262.00
BT . . . . . . . . . . . . . . . . . . . . . . .130.50 +4.90 151.00 91.70 Hochschild Mining . . . . . . . . . . .308.20 +15.60 370.60 220.00 Qinetiq . . . . . . . . . . . . . . . . . . . . 119.30 +0.20 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . . 1120.00 +45.00 1123.00 498.50
Bunzl . . . . . . . . . . . . . . . . . . . . .716.50* +7.50 784.50 478.50 Home Retail . . . . . . . . . . . . . . . .238.00* +4.20 336.50 233.10 Randgold Resources. . . . . . . . .6045.00 –45.00 6285.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .137.25* +1.85 153.80 111.40
Burberry . . . . . . . . . . . . . . . . . . .747.00 +20.50 750.00 359.00 Homeserve . . . . . . . . . . . . . . . .2095.00 +35.00 2190.00 1336.00 Reckitt Benckiser . . . . . . . . . . .3230.00 +89.00 3667.00 2680.00 VT . . . . . . . . . . . . . . . . . . . . . . .748.50 +8.00 773.00 416.00
Cable & Wire Comms . . . . . . . . . .57.05 –4.10 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .641.60* +8.60 766.80 487.00 Reed Elsevier . . . . . . . . . . . . . . .484.40 +8.20 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . .927.00 +25.00 1076.00 437.50
Cable & Wire Wwide . . . . . . . . . . .83.25 +0.20 94.80 68.60 Hunting . . . . . . . . . . . . . . . . . . .455.80 +12.70 659.50 377.00 Regus . . . . . . . . . . . . . . . . . . . . . .81.35 –1.05 125.50 58.75 Wetherspoon(J.D.) . . . . . . . . . . .417.60 +6.70 556.00 348.00
Cairn Energy. . . . . . . . . . . . . . . .398.10 +8.40 441.50 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .400.00 +9.10 478.30 291.70 Rentokil Initial . . . . . . . . . . . . . . . 117.00 +1.30 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .433.10* –1.90 551.00 405.25
Caledonia Invs . . . . . . . . . . . . .1581.00 +15.00 1759.00 1459.00 IG . . . . . . . . . . . . . . . . . . . . . . . .431.80 +39.60 446.10 226.50 Resolution . . . . . . . . . . . . . . . . . .59.20 +0.20 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1374.00* +30.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .780.00 +9.50 829.50 643.50 Imagination Tech Gp . . . . . . . . . .239.00 +4.00 289.30 80.00 Rexam . . . . . . . . . . . . . . . . . . . .313.20 +4.20 330.50 222.50 William Hill . . . . . . . . . . . . . . . . .177.70 +2.30 219.50 160.50
Capital & Counties . . . . . . . . . . .103.80 +1.80 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .655.50 +13.50 742.00 275.25 Rightmove . . . . . . . . . . . . . . . . .712.50* +30.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .435.00 +5.00 487.00 329.50
Capital Shopping Centres . . . . . .328.90* +5.40 580.00 300.20 Imperial Tobacco. . . . . . . . . . . .1910.00 +21.00 2159.00 1547.00 Rio Tinto . . . . . . . . . . . . . . . . . .3147.00 +85.00 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1564.00 +40.00 1742.00 986.00
Carillion . . . . . . . . . . . . . . . . . . .320.50* +6.30 361.90 236.75 Inchcape. . . . . . . . . . . . . . . . . . .263.00 +4.40 347.00 255.40 RIT Capital Partners . . . . . . . . .1085.00 +29.00 1159.00 861.50
Carnival . . . . . . . . . . . . . . . . . .2562.00* +57.00 2937.00 1431.00 Informa . . . . . . . . . . . . . . . . . . . .375.40 +8.60 439.40 216.00 Rolls Royce . . . . . . . . . . . . . . . .592.50* +8.00 631.50 325.00 Wood Group (John). . . . . . . . . . .297.50 +4.40 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .324.10 +4.20 380.50 284.75 Inmarsat . . . . . . . . . . . . . . . . . . .805.00 +24.00 819.00 491.00 Rotork . . . . . . . . . . . . . . . . . . .1329.00 +23.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .667.50 +20.00 744.00 380.50
Centrica . . . . . . . . . . . . . . . . . . .277.90* +0.60 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1109.00 +42.00 1175.00 584.50 Royal Bank Of Scot . . . . . . . . . . . .42.08 +0.63 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .961.70 +36.80 1344.50 555.10
Charter Intl . . . . . . . . . . . . . . . . .665.00 +5.00 855.50 395.25 Intermediate Capital . . . . . . . . . .256.00 +3.60 332.00 170.25 Royal Dutch Shell A . . . . . . . . .1770.50* –9.50 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .26.40 –0.20 86.00 20.25
Chemring . . . . . . . . . . . . . . . . .3321.00 +62.00 3711.00 1910.00 Intertek . . . . . . . . . . . . . . . . . . .1413.00* +34.00 1576.00 987.50 Royal Dutch Shell B . . . . . . . . .1703.00* –5.50 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chloride Group . . . . . . . . . . . . . .345.00 +0.50 345.40 129.00 Intl Power . . . . . . . . . . . . . . . . . .292.30* +2.70 354.00 228.00 RSA Insurance . . . . . . . . . . . . . . 117.60 +0.30 142.00 113.10
Close Bros . . . . . . . . . . . . . . . . .700.00 +3.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .276.90 +7.50 350.30 212.25 SABMiller . . . . . . . . . . . . . . . . .1927.00 +44.00 2090.00 1210.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .230.80* +2.50 278.60 164.90 Investec . . . . . . . . . . . . . . . . . . .480.30 +12.30 565.00 309.75 Sage . . . . . . . . . . . . . . . . . . . . . .241.00* +4.20 260.50 167.20
COLT Group . . . . . . . . . . . . . . . .131.10 +5.10 144.20 98.25 ITV . . . . . . . . . . . . . . . . . . . . . . . .52.75 +1.00 71.75 31.75 Sainsbury(J) . . . . . . . . . . . . . . . .324.60* +3.10 373.00 306.50 www.interactivedata.com

London rises on comments Wall St slides after

by Fed chairman Bernanke BP fall triggers fear
hunters moved in on a sector which said room rates at its North American The Federal Reserve’s Beige Book on
THELONDON has fallen on worries over potential
exposure to the Eurozone debt crisis
hotels rose for the first time in two
years during May. THENEW YORK regional US economic conditions
showed economic improvement

REPORT and the punitive levies European gov-

ernments may place on lenders’ earn-
ings.
BP topped the list of blue-chip fall-
ers, off 4.2 per cent, following a five
per cent decline on Tuesday, on wor-
REPORT across the country from late April to
May, yet it said there were worries
over the effect of Europe's sovereign
Barclays, HSBC, Lloyds Banking ries that the company will have to debt crisis on the US economy.

B U
RITAIN’S top share index closed Group, Royal Bank of Scotland and suspend its dividend payment under S stocks fell yesterday in anoth- “Folks don’t want to go home with
higher yesterday, lifted by gains Standard Chartered rose 1.4 to 3.3 per pressure from American politicians er late-day roller-coaster ride, any risk. You are seeing a [comeback]
in miners and banks, as cent. who say it should go to pay for legal dragged lower by BP and other of the safety trade,” said Evan
investor appetite for risk was The British blue-chip index has fall- claims and environmental damage in energy shares as the US probe Moskovit, head of US fixed income at
boosted by positive comments on the en 12.7 per cent since mid-April, as the Gulf. of the oil spill in the Gulf of Mexico Sun Capital Advisers in Wellesley,
US economy from Federal Reserve growth concerns sparked by Europe’s Peer Royal Dutch Shell slipped 0.5 deepened. Massachusetts.
Chairman Ben Bernanke. debt crisis dented investor confi- per cent. The late retreat stocks triggered a The Dow Jones industrial average
The FTSE 100 closed up 57.71 dence. Britain’s goods trade deficit with bid for safe-haven assets, which dropped 40.73 points, or 0.41 per
points, or 1.2 per cent, at 5,085.86, “The optimistic signs are that equi- the rest of the world was wider than pushed US government bonds into cent, to 9,899.25.
after a choppy session which saw the ties are spectacularly cheap against expected in April, after disruption to positive territory, while the euro The Standard & Poor’s 500 Index
index hit an intraday low of 4,998.06, gilts, and that the 5,000 level has air traffic as a result of the Icelandic edged higher boosted by demand for fell 6.31 points, or 0.59 per cent, to
in the wake of Tuesday’s 0.8 per cent proved remarkably resilient so far,” volcanic ash cloud hit both exports options. 1,055.69.
fall. said Jim Wood-Smith, head of and imports, official data showed. BP stock price plunged 15.8 per The Nasdaq Composite Index lost
The mood brightened after research at Williams de Broe. Johnson Matthey fell after trading cent – shedding $17bn in market cap- 11.72 points, or 0.54 per cent, to
Bernanke said yesterday the US eco- Williams de Broe’s Wood-Smith ex-dividend. italisation on the day – as it faced 2,158.85.
nomic recovery was on solid footing, added: “On the pessimistic side of it, more US government and congres- BP shares closed at $29.20, their
but cautioned it could be years before if the US indices are going to set the ANALYSIS l FTSE sional scrutiny over its handling of lowest since August 1996, wiping
the jobs lost during the deep reces- trend, then the Dow and the S&P 6,000
the Gulf of Mexico oil spill, the worst about £50bn ($72bn) off its market
sion are restored. have both been down below impor- in US history. capitalisation. BP shares trading in
Miners were in demand on firmer tant support levels.” 5,800 5,085.86 Earlier Fed chairman Bernanke, in New York fell on growing worries
9 Jun
metals prices as sources pointed to a Among individual movers, 5,600 testimony to the US House of about the costs the energy giant will
surge in China’s total exports in May, InterContinental Hotels Group, the Representatives Budget Committee, have to assume because of the spill.
ahead of the data’s official release on world’s largest hotel group by num- 5,400 said the US economic recovery “You hear this unease over solvency
Thursday. ber of rooms, climbed 3.9 per cent as 5,200 appeared to be on solid footing and and/or a dividend suspension at BP,
Fresnillo, Kazakhmys and Xstrata it began a two-day event for analysts that while a double-dip recession and I think it's hurting the tone of the
5,000
were the best off, adding 4 to 4.6 per and investors in New York. “can never be entirely ruled out,” he market,” said Nick Kalivas, senior
cent. The hotelier was also boosted by a 4,800 expected the economy to continue equity index analyst at MF Global in
Banks found favour as bargain read-across from peer Marriott which 24 Mar 26 Apr 26 May growing. Chicago.
 Lifestyle THE SMARTEST 27
WALLETS
| Father’s Day IN TOMORROW’S
STYLE SECTION

Goodies certain to
make dads beam
Boys will be boys, and here are some gadgets to make
them the envy of all the others, says Juliet Samuel

DRAPER 40765 POWER DRILL £49.99

from amazon.co.uk SONY DTV £1,999 from Marks and Spencer

It is a truth universally acknowledged that a dad hasn't With this year seeing the release of the world’s first major 3D blockbusters, it’s high time this new
come of age before he has his very own power drill. This entertainment delight was brought into the home. Thankfully, technophile prayers have been
cordless model from Draper Tools is a durable option answered with this brand new 40-inch 3DTV, available from Marks and Spencers for release the
with long-lasting, fast-charing and reliable batteries that same weekend as Father’s Day. First showcased in Las Vegas in January, this family-friendly asset to
won't fail you when you're away from a power supply. the living room is now arriving just in time for the World Cup and offers full 1080i HD resolution as
Despite working off a battery pack instead of mains well as three dimensional viewing. It comes with two free pairs of 3D glasses, usually priced at £100,
power, the Draper 40765 offers excellent torque and which are controlled by infra-red radio link from the TV. Bravia internet video enables access to
speed as well as a hammer action option. It comes with online content, giving you the ability to stream YouTube straight through your cutting-edge TV. It’s
six drill bits and a carry case as well as a spare battery. sure to make the other fathers jealous.

AF-S DX NIKKOR 35mm/1.8 LENS £166.99
from warehouseexpress.co.uk
Your father might already have his own digital camera,
but he probably doesn't have a slick, wide-angle lens to
go with it. With a 35mm focal length and aperture
range from 1.8 to 22, the AF-S DX Nikkor is great in low
light conditions and its lightweight build makes it
extremely portable. Its quiet motor is also useful for dis-
creet wildlife or people shots. Overall, this high-quality,
fixed zoom lens is perfect for an amateur photographer
interested in learning how to use aperture, shutter
speed and image sensitivity together before moving on
to a more complex zoom lens.
LIEBHERR VINOTHEK
SINGLE TEMPERATURE
WINE COOLER £645 from
wineware.co.uk
Much as they might want one, most
pops sadly don't have their own wine
PENTAX 8x42 DCF CS BINOCULARS £281.67 from cellar. This single-temperature wine
amazon.co.uk cooler is the next best thing. With
space for 68 bottles held in perfect
Whether your father is a budding bird watcher, a peeping Tom, or just likes humidity and temperature condi-
to keep an eye on things, you can’t go wrong with a semi-pro, wide-angle tions, this cooler ensures your high-
pair of binoculars. This sleek, lightweight pair of eyes from Pentax offers a quality wines will be stored in
clear and bright field of view, with all of its prisms and lenses subject to optimal conditons until you’re ready
multiple optical coatings for greater contrast and vivid colour. It is also to crack it out. And despite its large
tough on impact due to its rubber coating and water resistent up to a metre capacity, it will fit neatly under a
underwater (for when the weather breaks during that ambitious summer convenient counter-top – a rather
expedition). The comfortable eyepieces make them suitable for long use more manageable prospect than
and the powerful lenses offer up to eight times magnification clearing out the whole cellar.

BUFFALO CHIP FRYER £79.99 from nisbets.co.uk
Help your dad expand his BBQ skill set beyond the grill with this powerful
2.8 kilowatt chip fryer. With a massive five litre tank, metal basket and
stainless steel chassis, this mean frying machine will deliver delicious crispy
fries with minimal effort – its adjustable thermostatic control means that
once you’ve set the correct temperature, all you have to do is time the fry-
ing sessions. In case the chef gets overzealous, it also comes with a one-
year warrantee and when BBQ season is over, it can be used to deepfry
almost anything, from churros to courgettes.
PETZEL TIKKA PLUS HEADLAMP £24.99 from Cyclesportsuk.co.uk
Dorky it may be, but there are few things more useful than a good headlamp. For camping trips, late-
night reading while one’s partner is asleep and adventurous expeditions in search of pilot lights, fuse
boxes and outdoor rubbish bins, the Petzel Tikka Plus is bound to come in handy. It produces flood
beam lighting from four LEDs with three brightness settings and, for night-time bike rides, can be set
to flash mode. Petzel is so confident of its reliability – including water resistance – that it supplies the
device with a three-year warrantee and its triple-A battery supply (included) means you don’t have to
fork out for expensive lithium batteries. The camouflage-style elastic headband is adjustable and
comes in two colours: dark grey and orange or light grey and green.

OUT OF OFFICE
TIMOTHY BARBER
Left, the Galleries of MUSEUM OF LONDON
Modern London have Right here in the City and free, the Museum of
been through a £20m London is a treasure trove of artefacts and
redevelopment. curios, and its Galleries of Modern London, doc-
umenting the city’s development from the
Great Fire of London in 1666 onwards, are now
open after a £20m redevelopment. Displays
include reconstructed versions of a Georgian
pleasure garden and a debtors’ prison, an Art
Deco lift from Selfriges and a recreation of
London’s Victorian streets. 150 London Wall,
EC2Y 5HN. www.museumoflondon.org.uk
THE FANTASTICKS NIKE STADIUMS AT SELFRIDGES
The original off-Broadway production of this If you’re looking for a space in the West
1960 musical about a pair of young End to watch the World Cup, Nike
lovers ran for a record-breaking 42 has taken over the Ultralounge at
years, though it never received much Selfridges to install 62 plasma
recognition on these shores. That’s screens, an exhibition of iconic
set to change with the show’s football kits and a chill-out lounge
arrival in the West End at last. complete with video games and
Until 4 Sept, Duchess table football. Opens this Friday
Theatre, WC2. Tickets in time for the opening game.
£20-£49.50 from Selfridges, 400 Oxford St, W1A
www.thefantasticks.co.uk 1AB, www.selfridges.com
 28 Lifestyle | Beers of the World Cup CITYA.M. 10 JUNE 2010

THE GROUPS

drink
(and their beers)
A
They its all over... FRANCE – Colomba
MEXICO – Negra Modelo
SOUTH AFRICA – Amstel
URUGUAY – Stinger

Beer is football’s close B

brother. So City A.M.’s ARGENTINA – Quilmes
GREECE – Mythos
Frank Dalleres decided NIGERIA – Guinness
that a World Cup of SOUTH KOREA – Hitea

brews was only fair C

ENGLAND – London Porter

I
F football is the universal game, then
beer must be its companion drink. USA – Brooklyn Lager
There is not a corner of the globe ALGERIA – Skol
where the locals do not relish a kick- SLOVENIA – Union Pivo
about. Similarly, wherever you find civili-
sation, you will inevitably find a brewery.
Yet – and I’m sorry, Thomas Jefferson –
not all beers are created equal. Just as
D
some countries are more accomplished at GERMANY – Schneider Weissee
shifting an inflated pig’s bladder with GHANA – Star
their lower extremities, so too do some AUSTRALIA – Little Creatures Pale Ale
nations trump others in combining hops,
malt, yeast and water.
SERBIA – Jelen Pivo
So in an attempt to sort the Brazils of
beverage making from the Liechtensteins
of lager, your correspondent collected an
ale for each of the 32 countries at this Jackie and Bobby Charlton celebrating
E
summer’s World Cup and, with three all- the 1966 victory with their mother, and HOLLAND – Grolsch Weizen
too-willing testers in tow, pitted the beers a World Cup Beer Picture: GETTY DENMARK – Mikkeller Jackie Brown
against each other until there was only JAPAN – Asahi
one left that deserved to be crowned the CAMEROON – Cameron’s 6th Sense
greatest.

GROUP STAGES LAST 16 F

There are always big-name casualties in Stinger, a nettle beer representing Uruguay, was sufficiently
ITALY – Le Baladin Open
the first round, and it was no exception intriguing in a fresh, herby way to see off the still popular PARAGUAY – Dogfish Head Palo Santo Marron
in the Beer World Cup, with Sagres of Quilmes in the first head-to-head clash, before the malty but NEW ZEALAND – Monteith’s Golden Lager
Portugal and South Africa’s Amstel fresh Brooklyn Lager earned the USA victory over Serbian SLOVAKIA – Zlaty Bazant
being egded out by more distinctive, staple Jelen Pivo, a likeable offering with a bitter finish.
characterful rivals. They may routinely Nigerian-brewed rocket fuel Guinness Foreign Extra
dominate the football version, but
Brazil’s Brahma failed to make the cut,
met its match in Colomba, a refreshing, golden Corsican
lager imbued with spices and herbs that taste just a lit-
G
while the Dutch challenge died when tle bit like a delicious version of Deep Heat, while, with BRAZIL – Brahma
Grolsch Weizen was not rated among utter predictability, Germany knocked out England, the IVORY COAST – Tusker
the top two in Group E. fruity wheat of Schneider Weisse proving a far bigger PORTUGAL – Sagres
Greece’s easy-drinking Mythos nar- hit than the acquired taste of nutty, liquoricey London
rowly missed out, Mexican dark tipple Porter.
NORTH KOREA – Mann’s Brown Ale
Negra Modelo bit the dust and crisp, Cameron’s 6th Sense, a mellow, floral ale, booked
refreshing and frankly lovely Zlaty
Bazant from Slovakia could count itself
extremely unfortunate to fall at the first hurdle.
Cameroon and won more fans than Italy’s impos-
ing Le Baladin Open, which comes in a 750ml bot-
tle and, at 7.5 per cent, does to the tastebuds what
H
Surprise hits included Monteith’s Golden Lager Zinedine Zidane did to Marco Matterazzi. Kiwi SPAIN – Estrella Damm
from New Zealand, Tusker, representing Ivory favourite Monteith’s Golden Lager, light and honeylike, CHILE – Fire In The Hole
Coast, and Cameron’s 6th Sense, somewhat tenu- knocked out the clean but reserved Asahi of Japan. SWITZERLAND – Hurlimann
ously flying the flag for Cameroon, while Quilmes Barcelona-brewed pilsner Estrella was narrow- HONDURAS – Wells Banana Bread Beer
(Argentina), London Porter (England), Le Baladin ly preferred to the golden-tasting Ivorian
Open (Italy), Colomba (France), Estrella Damm entrant Tusker, and Banana Bread Beer, for
(Spain) and Schneider Weissee (Germany) ensured Honduras, pipped the pleasant Mann’s BENDING THE RULES:
the heavyweights made it into the knockout stages. Brown Ale, wearing its North Korea kit. WHY WE CHOSE THEM
Not all 32 of the World Cup nations export their
QUARTER-FINALS SEMI-FINALS beers to the UK so, where we were unable to lay
our hands on the genuine article, some creativity
South American trumped North as Stinger unan- Germany hasn’t got its fine reputation for was required, and our friends at www.beerge-
imously beat Brooklyn, but French hopes ended all things beery without knowing how to nie.co.uk offered us these alternatives.
when Colomba, which really is worth seeking out, fashion a decent steiner of frothing glory, ALGERIA: Skol is the country’s most popular
came up against wheat beer colossus Schneider and Schneider Weisse continued to live up beer, apparently
Weisse. Monteith’s Golden Lager continued New to its billing by putting Stinger and
Zealand’s improbable march towards the trophy Uruguay to the sword. Its opponent in the CAMEROON: Cameron’s 6th Sense is a cheap
by seeing off Cameroon’s 6th Sense, the former final, after much swilling and deliberation, and convenient pun
being swigged hungrily by all judges, and the would be rank outsider Monteith’s Golden CHILE: Fire In The Hole, a spicy beer, is made
durable Estrella won the day against the Banana Lager, whose enticing subtlety saw off with chillis
Bread Beer, whose novelty started to wane. Spain and its much-loved Estrella. HONDURAS: Bananas are the main export,
hence Wells Banana Bread Beer
IVORY COAST: Kenyan brew Tusker repre-
FINAL sents Les Elephants, as the Ivorians are known
NORTH KOREA: In 2000, Kim Jong Il had an
In keeping with the format, it only seemed fair to hand one of the losing semi-finalists the consolation of third place, and hav- Ushers brewery dismantled, shipped from
ing improved round by round Estrella took that crown for Spain, its abiding drinkability outlasting the ever-so-slightly gim-
micky Stinger.
Dorset to North Korea, and reassembled. This
In some ways the final was an overwhelmingly Bavarian affair, with even Monteith’s being based on the malty lagers of is one of Ushers’ finest
Munich, and it was almost impossible to choose a winner between two marvellous ales. Schneider Weisse, as well as having a PARAGUAY: Dogfish Head is American but
name every bit as superbly Germanic as Bastian Schweinsteiger, was delicious enough to atone for the hurt of repeated penalty made using Paraguayan Palo Santo wood
shoot-out defeats to our Teutonic chums, yet, after extra time, it was Golden Lager that snatched the spoils, its combination of URUGUAY: The recipe for Stinger was drawn
smooth malt and light, amber nuttiness doing what no Kiwi footballers are ever likely to do, and winning the World Cup for New up in 1930, when Uruguay won the Cup
Zealand. With thanks to www.beergenie.co.uk for providing an international panoply of brews
CITYA.M. 10 JUNE 2010 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show: Live
topical reports.
7.30pm EastEnders; BBC News
8pm Watchdog
9pm Junior Apprentice
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week; Holiday
Weatherview
12.25am Sign Zone: Panorama
12.55am Sign Zone: Countryfile
1.55am Sign Zone: When Romeo
Met Juliet 2.55am Sign Zone: Diet
or My Husband Dies 3.45am Sign
Zone: Great British Menu 4.45am-
6am BBC News
6pm Eggheads
6.30pm Great British Railway
Journeys
7pm The Culture Show: The
relationship between science
and art. Last in the series.
8pm Springwatch 2010
9pm Springwatch Unsprung
2010
9.30pm CHOICE World Cup
Kick Off Concert: Music stars
perform at Soweto’s Orlando
Stadium.
10.30pm Newsnight; Weather
11.20pm The Culture Show
12.20am World Cup Kick Off
Concert
3.20am BBC News 4.45am-6am
Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five
TV PICK
7pm Emmerdale: Hour-long 7pm Channel 4 News 7.30pm CHOICE Fifth Gear:
episode. Nicola’s court hearing 8pm Location, Location, Tiff Needell and Jonny Smith
is delayed. Location: A couple who have attempt a trip in an electric car;
8pm Coronation Street been house-hunting for 10 years. Five News Update
8.30pm Coronation Street 9pm Come Dine with Me: 8pm Britain’s Greatest
9pm Father & Son Footballers Special Machines with Chris Barrie;
10pm ITV News at Ten 10pm Big Brother Five News at 9
10.30pm London News 11.10pm CHOICE Skins: New 9pm FILM Once Upon a Time
10.35pm FILM Sixty Six: series. Thomas feels responsible in Mexico: Action thriller, WORLD CUP KICK OFF CONCERT
Premiere. Coming-of-age for an accident in a club. starring Antonio Banderas and BBC2, 9.30PM
comedy drama, starring Gregg 12.15am Dirty Sexy Money Johnny Depp. 2003. Football stars past and present
Sulkin. 2006. 1.10am Big Brother: Live 3.30am 11.05pm Police Interceptors: introduce performances by international
12.20am The Zone; ITV News Dispatches: Undercover Social 12.05am SuperCasino and African artists, featuring Alicia
Headlines Worker 4.25am Unreported World 4.05am Wildlife SOS 4.30am Keys, Black Eyed Peas and Shakira.
2.20am British Touring Car 4.50am The Kitchen Pharmacy Wildlife SOS 4.55am Rough Guide to
Championship Highlights 3.35am- 5.05am Countdown 5.50am- Weekend Breaks 5.10am Neighbours
5.30am ITV Nightscreen 6.15am The Hoobs 5.35am-6am Home and Away

SKY SPORTS 1 Tour Golf 4.30am-5am 12am CSI: Crime Scene 9.30pm How I Met Your 4.40am Attack and Capture:
SATELLITE & CABLE

5.30pm Live Twenty20 Cup
Cricket 9pm ATP Tour
Uncovered 9.30pm Premier
League World 10pm World
Cup Report 10.30pm Football’s
Greatest 11.30pm Twenty20
Cup Cricket 1.30am Football’s
Greatest 2.30am Time of Our
Lives 3.30am Premier League
World 4am Football’s Greatest
5am IAAF Athletix Weekly
5.30am-6am Premier League
World
SKY SPORTS 2
2.55pm Live Test Cricket
10.30pm WWE: Late Night –
Raw 1.30am WWE: NXT
2.30am NRL Fulltime 3am-5am
Championship Rugby League
SKY SPORTS 3
7pm IAAF Athletix Weekly
7.30pm Premier League World
8pm Live PGA Tour Golf 11pm
European Tour Golf 12.30am
Golfing World 1.30am PGA
Premier League World
BRITISH EUROSPORT
7pm Live Motor Racing 8pm
Soccer City Live 8.30pm
Cycling 9pm Live Motor Racing
11pm Rallying 11.30pm Soccer
City 12am Le Mans 24 Minutes
12.30am-1am FIFA World Cup
Giants
ESPN
5.30pm World Cup Season
8pm Premier League Football
10pm MMA Live 10.45pm Talk
of the Terrace 11pm South
Africa Nightly 11.30pm Robben
Island: A Greater Goal 12.00am
UFC All Access 12.30am Press
Pass 2010 1.00am UFC All
Access 1.30am-5am Live NBA
Basketball
LIVING
7pm Ghost Whisperer 8pm
Drop Dead Diva 9pm Grey’s
Anatomy 10pm Criminal Minds
Investigation 2am Exposed –
Jude Law 3am The Fresh
Prince of Bel-Air 3.50am
Maury 4.40am Nothing to
Declare 5.30am-6am Home
Shopping
BBC THREE
7pm Top Gear 8pm Britain’s
Really Disgusting Food 9pm
Stanley Park 9.30pm Dappers
10pm EastEnders 10.30pm
Lee Nelson’s Well Good Show
11pm Family Guy 11.45pm
Junior Apprentice 12.45am
Stanley Park 1.15am Dappers
1.45am Who Is Nelson
Mandela? 2.45am Lee Nelson’s
Well Good Show 3.15am
Britain’s Really Disgusting Food
4.15am The Wags’ Stories
4.45am-5.15am Bizarre ER
E4
7pm Hollyoaks 7.30pm My
Name Is Earl 7.55pm Friends
9pm The Big Bang Theory
Mother 10pm The The Story of U-Boat 505
Inbetweeners 10.35pm Rude 5.30am-6am How Does That
Tube 11pm Glee 12.05am-6am Work?
Big Brother: Live
DISCOVERY HOME &
HISTORY HEALTH SKINS
7pm How the Earth Was Made 7pm Baby Tales 8pm Hospital CHANNEL 4, 11.10PM
8pm Ancient Discoveries 9pm 9pm Emergency 10pm New series. Thomas feels responsible
Warriors: Attila the Hun 10pm Hospital Emergency 11pm for an accident in a club on a night out
Egypt 11pm How the Earth Trauma Unit 12am Emergency with friends. Guest starring Birds of a
Was Made 12am Warriors: 1am Hospital Emergency 2am Feather actress Pauline Quirke.
Attila the Hun 1am Clash of the Trauma Unit 3am Hospital
Gods 2am The Sinking of the 4am Bringing Home Baby
Royal Oak 3am Not Forgotten 5am-6am Student Midwives
4am-5am Jew Train XX
SKY1
DISCOVERY 8pm Modern Family 9pm A
8pm How Do They Do It? League of Their Own 10pm Lie
8.30pm How It’s Made 9pm to Me. Cal tries to track down a
Heli-Loggers 10pm Man vs psychopath. 11pm NCIS: Los
Fish with Matt Watson 11pm I Angeles. The secret transfer of
Was Bitten 12am Deadliest a terrorist is compromised. FIFTH GEAR
Catch 1am Bear Grylls: Born 12am Oops TV 1am Road Wars FIVE, 7.30PM
Survivor 2am How Do They Do 2.40am 24 3.30am Tru Calling Tiff Needell and Jonny Smith attempt
It? 2.30am How It’s Made 4.20am Celebrity Parents’ SOS a trip in an electric car and Vicki
3am Extreme Engineering 4.45am Oops TV 5.10am-6am Butler-Henderson drives the £100,000
3.50am Man on Earth Sell Me the Answer Maserati GranCabrio.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
12 32 16 8 14 33 15 9 
28 16
  
12 29
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 4 13
15 24 17 17
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 30 14
    
above or to the left of it. 19
You can only use the digits 1-9 45
    and you must not use the 23     
same digit twice in a block. 15 21 34 35 18 5
    The same digit may occur 45 

 more than once in a row or

column, but it must be in a
27 11
  
7 16
    separate block.
3 10 7 16 
26 22
  10 17
 

    ACROSS DOWN
1 Roman god with 1 Media personality, ___

    WORDWHEEL L E
two faces (5)
4 Large bags (5)
7 Adult female bird (3)
Street-Porter (5)
2 Pen point (3)
3 Unstable (5)
Using only the letters in the Wordwheel, you have 8 Ancient region of Egypt 4 Facial expression
    ten minutes to find as many words as possible,
I T and Sudan, on the Nile (5) of contempt (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 10 Ancient (3)
11 Scottish island,
5 Sidekick (5)
6 Chair used as a

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
N R capital Portree (4)
12 Slang for ‘drunk’ (5)
carriage (5)
9 Bring out an official
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
G H 14 Synthetic silk-
like fabric (5)
document (5)
13 Type, kind (3)
QUICK CROSSWORD 1 8 4 2 1 9 7
17 Heavens (5) 15 Extremely sharp (5)

0 8 7 ( ' 7 ( ; $ 6
4 7 9 8 6 5 7 1 SUDOKU         
20 Purchaser (5)
22 Subjected to great
16 Metal-bearing
mineral (3)
1 6 7 6 8 9         
8 5 , $ 2
8 6 3 1 4 2 tension (4) 17 Large ladle (5)
7 + , 1 * 6 9 , 6 $         
8 & 6 $ 7 ( . 9 4 8 5 6 3 7 9 23 Spherical object (3) 18 Suffuse with colour (5)
        
$ % ( / 7 $ 6 7 < 7 2 8 5 9 1 8 7 24 Passed out playing 19 Agitates (5)
        
/ 3 % $ *
$ 6 3 ( 1
5 %
% $ % (
5 3 6
5
1 4 2
2 1 3
3 1
5 6
WORDWHEEL         
cards (5)
26 Boisterous practical
20 Shift, move very
slightly (5)
+ + ( , 5 , 7         
$ 8 7 2 & $ 1 1 2 7 3 8 9 7 1 4 The nine-letter word joke (3) 21 Revolving arm of a
2 9 9 7 4 8 6 3         
/ 1 * ( (
was PARSONAGE         
27 Printing machine (5) distributor (5)
7 2 . ( 1 6 0 ( $ 5 1 2 6 9 8 9 1
28 Come into (5) 25 Section of a play (3)
 Sport
30 CITYA.M. 10 JUNE 2010

Results
CRICKET
FRIENDS PROVIDENT T20 - North Division: (Derby); Derbyshire
120-4 v Warwickshire 123-7 (I R Bell 66).Warwickshire (2pts)
beat Derbyshire by 3 wickets. (Old Trafford); Lancashire 157-5 (T C
Smith 67) v Northamptonshire 88. Lancashire (2pts) beat
Northamptonshire by 69 runs.
Ousted Cole keeps his focus
South Division: (Tunbridge Wells); Kent 163-5 (D I Stevens 52no) v
▲

Sussex 166-6 .Sussex (2pts) beat Kent by 4 wickets. (Lord’s); PREMIER LEAGUE
Middlesex 155-6 v Somerset 158-5 (K A Pollard 89no).Somerset
(2pts) beat Middlesex by 5 wickets. BY JON COUCH
RACING RESULTS JOE COLE refused to be drawn on his
BEVERLEY future last night after it was con-
2.00 1 Nellie Ellis (S De Sousa) 15-8 Fav 2 Madam Markievicz (P Makin)
2-1 3 Alhoni (G Gibbons) 14-1 firmed he is to leave Chelsea this sum-
2.30 1 Ryedane (D Allan) 4-1 Fav 2 Azygous (David Simmonson) 25-1 3 mer.
Tamarind Hill (Declan Cannon) 12-1 4 Timber Treasure (S De Sousa) 16-1
3.00 1 Polish World (P Pickard) 10-1 2 Amethyst Dawn (D Allan) 7-2 Fav 3 The England playmaker will depart
Northern Flyer (I J Brennan) 9-2 Stamford Bridge after seven years on 1
3.30 1 Highland Love (A Culhane) 7-1 2 George Adamson (P Mcdonald)
15-8 Fav 3 Mohawk Ridge (P Makin) 3-1 July after the Premier League champi-
4.00 1 Rule Breaker (S De Sousa) 11-10 Fav 2 Advertisement (T Eaves) 7-2 ons refused to agree terms to a new
3 Silvery Moon (D Allan) 18-1
4.30 1 Captain John Nixon (James P Sullivan) 9-2 2 Dubawi King (A deal.
Culhane) 8-1 3 Pleasant Way (P Mcdonald) 12-1 He joins 30-pluses Michael Ballack
HAMILTON
6.35 1 Ivestar (Miss Charlotte Holmes) 40-1 2 El Dececy (Mr S Walker) and Brazilian right-back Juliano
Evens Fav 3 Final Salute (Mr J Newman) 8-1 Belletti through the exit door as the
7.05 1 Soraaya (C Catlin) 15-8 Jt Fav 2 Nawaashi (T P O’shea) 5-2 3
Dunmore Boy (P Hanagan) 15-8 Jt Fav Blues attempt to impose a stringent
7.35 1 Tangerine Trees (P Hanagan) 7-4 Fav 2 Indian Skipper (F Norton) 5- pay code.
1 3 Leonid Glow (P Makin) 11-4
8.05 1 Just Lille (B Mchugh) 12-1 2 Lady Eclair (P Mulrennan) 12-1 3 Cole’s availability is set to spark a
Citizenship (S Donohoe) 28-1 mass transfer scramble with
8.35 1 Royal Straight (P Hanagan) 15-8 2 Stellite (G Bartley) 16-1 3 Royal
Dignitary (A Nicholls) 10-11 Fav Tottenham, Arsenal, Manchester
9.05 1 Applaude (F Norton) 8-1 2 Saving Grace (D Fentiman) 9-1 3 Sarwin United and Manchester City all scram-
(A Elliott) 12-1
HAYDOCK bling for the 28-year-old’s signature.
2.20 1 Very Good Day (A Munro) 4-9 Fav 2 Cotillion (S Donohoe) 25-1 3 But fronting a packed England
Joseph Lister (Martin Dwyer) 25-1
2.50 1 Sweetie Time (S Drowne) 11-1 2 Khor Sheed (Kirsty Milczarek) 9-2 press conference yesterday, the former
3 Galloping Queen (A Munro) 8-1 West Ham trainee insists his focus lies
3.20 1 Sunraider (M Hills) 11-4 Fav 2 Little Garcon (Martin Dwyer) 8-1 3
Walvis Bay (M Fenton) 7-1 solely on playing his part for England
3.50 1 Dolphin Rock (T P Queally) 9-2 Jt Fav 2 Pintura (S Donohoe) 20-1 3 in South Africa this month.
Pentominium (L Dettori) 8-1
4.20 1 Tanforan (S Drowne) 25-1 2 Flying Silks (R Havlin) 11-4 Fav 3 Just “I am just focused on the World Cole, Ballack (top right), and Belletti (bottom) are victims of Chelsea’s efforts to impose a strict pay code. Pictures: REUTERS, GETTY
Timmy Marcus (R Winston) 8-1 Cup,” Cole said. “I’ll leave that with
4.55 1 Itlaaq (R Hills) 11-4 Fav 2 Satwa Moon (L Dettori) 11-1 3 The
Galloping Shoe (S Drowne) 40-1 my agent. I just want to get my head Since moving across the capital for With Cole, Ballack and Belletti off Ballack with fellow German Bastian
KEMPTON down and try and train and play well. £6.6m in 2003, Cole has become an the wage bill, boss Carlo Ancelotti is Schweinsteiger, and Cole with
6.20 1 Quiet Mountain (Matthew Davies) 4-1 Jt Fav 2 Harting Hill (Katia
Scallan) 13-2 3 Teen Ager (Ryan Clark) 14-1 “My future will sort itself out. It instant hit with the Blues faithful, now free to up his bid to replace Liverpool winger Yossi Benayoun.
6.50 1 Striking Priorite (William Buick) 10-3 Jt Fav 2 Lady Morganna (Kieren won’t distract me. It has been going winning three Premier League titles
Fox) 14-1 3 Comrade Bond (T E Durcan) 9-2
7.20 1 Dever Dream (R Hughes) 4-9 Fav 2 Gojeri (Jack Mitchell) 16-1 3 on for a while and it is a story to be and three FA Cups in 282 appearances
Dungannon (J Fortune) 6-1
7.50 1 Arctic Cosmos (William Buick) 3-1 2 Sierra Alpha (T E Durcan) 16-1
3 Activate (Hayley Turner) 2-1 Fav
8.20 1 Litenup (T E Durcan) 16-1 2 Champagne Fizz (Dane O’neill) 5-1 3
told at another time.
“I want to try and do my best for
for the club, scoring 39 goals.
But a serious knee injury halted his Harry’s hopeful of luring protege Joe
Iguacu (Matthew Davies) 11-4 Fav England over the next few weeks.” progress last season with Cole strug-
8.50 1 Al Khimiya (Jim Crowley) 10-1 2 That’s My Style (William Buick) gling to hold down a first-team place TOTTENHAM boss Harry Redknapp youngster, said: “It’s not impossible.
10-1 3 Flouncing (R Hughes) 3-1 Fav
9.20 1 Cape Rock (Jim Crowley) 7-1 2 Clockmaker (William Buick) 11-2 3
WHERE WILL COLE END UP? having netted just twice in 26 games. says it’s “not impossible” he will sign He’s told us that he hasn’t decided any-
Regeneration (Hayley Turner) 5-2 At the same time, talks stalled over Joe Cole this summer. thing yet and he hasn’t done anything
YARMOUTH
2.10 1 Leiba Leiba (S Sanders) 4-11 Fav 2 Joe Junior (David Probert) 33-1
Tottenham 4/6 a new deal with owner Roman Spurs are odds-on favourite to land definite. So there’s a chance.
3 Hawk Moth (J Dean) 18-1 Arsenal 5/2 Abramovich apparently unhappy at the England midfielder but face stiff “I suppose it all depends on the
2.40 1 King’s Sabre (Paul Eddery) 11-2 2 Macanta (N Mackay) 5-1 Fav 3
Rascal In The Mix (Amy Ryan) 18-1 Manchester Utd 6/1 Cole’s reported demands to increase competition from rivals Arsenal. financial side of it and everything else,
3.10 1 Miss Kitty Grey (N Mackay) 9-4 Fav 2 Bold Diktator (Amy Ryan)
Manchester City 8/1 his £90,000-a-week wage to earn parity Redknapp, who gave Cole his top- but according to his agent he’s not
25-1 3 Many Welcomes (Jemma Marshall) 11-1
3.40 1 Collect Art (Hayley Turner) 7-4 Fav 2 Via Aurelia (J P Spencer) 3-1 with the club’s top earners, who take flight debut with West Ham as a made up his mind yet.”
3 Eye For The Girls (Catherine Gannon) 16-1 Real Madrid 12/1 home up to £150,000 a week.
4.10 1 Deacon Blues (J P Spencer) 5-6 Fav 2 Angus Newz (S Sanders) 12-
1 3 Street Power (A Kirby) 11-4
4.40 1 Fasette (Ashley Morgan) 7-1 2 Brave Decision (W A Carson) 9-4

Ballack ‘surprised’ by Chelsea release

Fav 3 Sultan’s Choice (Andrew Heffernan) 9-2
5.10 1 Bonnie Brae (S Sanders) 5-1 2 Sharp Eclipse (J P Spencer) 11-8 Fav
3 Decency (N Mackay) 7-1
5.40 1 Guga (S Sanders) 5-2 Fav 2 Blackstone Vegas (J Quinn) 5-1 3 Libre
(Ashley Morgan) 6-1
TENNIS
ATP AEGON CHAMPIONSHIPS, LONDON (England)—2nd rnd: D
Sela (Isr) bt G Muller (Lux) 7-5 6-2, F Lopez (Spa) bt G Dimitrov
(Bul) 6-2 6-4, M Fish (USA) bt S Giraldo (Col) 7-6 6-2, J Benneteau
(Fra) bt K Anderson (SA) 7-5 6-3, D Istomin (Uzb) bt D Brown (Jam)
▲

7-6 (9-7) 6-4, R Nadal (Spa) bt M Daniel (Bra) 6-2 6-2, M Fish (USA) FOOTBALL ing deal, which is worth an estimated Becker said. “He has not spoken to Germany coach Joachim Low yester-
bt S Giraldo (Col) 7-6 6-2, J Benneteau (Fra) bt K Anderson (Rsa) 7- £150,000 a week. Chelsea for three months.” day revealed there are “concrete offers
5 6-3, D Istomin (Uzb) bt D Brown (Jam) 7-6 6-4, R Nadal (Spa) bt M BY JON COUCH
Daniel (Bra) 6-2 6-2, M Granollers (Spa) bt M Gicquel (Fra) 6-1 6-4, But Ballack’s agent, Michael Becker, Ballack was signed by Jose from different clubs in different
S Querrey (USA) bt R Ginepri (USA) 7-6 6-2, M Llodra (Fra) bt J MICHAEL BALLACK’S agent has told claimed there had been no contact Mourinho on a free transfer from leagues” for Ballack, who is currently
Levine (USA) 6-4 6-2, N Djokovic (Ser) bt P Lorenzi (Ita) 6-3 6-3, X
Malisse (Bel) bt B Tomic (Aus) 6-2 3-6 6-2, M Cilic (Cro) bt N Mahut of the German’s “complete surprise” with Chelsea and said the midfielder Bayern Munich in 2006 and went on on holiday in Miami after being ruled
(Fra) 6-7 6-3 6-2 at being released by Chelsea. was willing to take a pay cut and an to make 167 appearances, scoring 26 out of the World Cup through injury.
The 33-year-old was believed to be initial one-year extension to stay at goals. In that time, he won three FA Juliano Belletti, 33, also leaves
SPORTS EDITOR JON COUCH locked in talks with the Premier Stamford Bridge. Cups and this season helped the club Chelsea having joined from Barcelona
email sport@cityam.com League champions to extend his exist- “He was completely surprised,” clinch their first title in four years. in 2007, making 54 appearances.

Capello snaps at snappers as WORLD CUP NEWS | IN BRIEF

Cameron flies flag for England Liverpool striker Fernando Torres net-

World Cup pressure mounts

WORLD CUP men, bellowing “Why do you take
photos of the rooms? No excuses”.
2010 After staring angrily at the snap-
BY JON COUCH pers, Capello turned away and head-
ed towards the training pitch to lead
UBER-COOL Fabio Capello showed the a behind-closed-doors session ahead
first signs of feeling the strain yester- of Saturday’s World Cup opener with
day after launching an astonishing USA. It is the first time the usually-
verbal attack on photographers at calm Italian has lost his temper pub-
England’s World Cup training base. licly, although it is believed to have
The Three Lions boss took excep- stemmed from his displeasure at his
tion to his players being filmed inside squad being filmed while on safari on
their Royal Bafokeng camp and Tuesday.
stormed out to confront the camera- It is also believed the room in ques-
tion houses a medical area where one
or two members of the squad were
said to be undergoing treatment.
Thankfully, Capello looks to have a
clean bill of health for the USA game
with Shaun Wright-Phillips and goal-
keeper David James both returning in
training after recovering from slight
knee injuries.
The only absentees were Ledley King
and James Milner, who trained in the
gym – King as a result of his on-going
knee problem and Milner after recov-
ering from a high temperature.
PRIME MINISTER David Cameron is to
replace the Union Jack above 10
Downing Street with the flag of St
George in support of England’s World
Cup campaign.
Cameron allowed the flag to be
changed in a bid to unite Britain, with
Scotland, Wales and Northern Ireland
failing to qualify for the tournament.
He said: “I’m sure that everyone in thisby Spanish and Portuguese journalists on
house, no matter what part of the United
Kingdom they come from, will be cheer-
ing ‘Come on England!’”
Iniesta doubt for Spain
SPAIN have a fresh injury concern over
playmaker Andreas Iniesta.
The Barcelona midfielder was taken on Johannesburg.
in the first half of their 6-0 warm-up win
over Poland on Tuesday night with a
minor thigh injury.
ted twice for the Spanish and says he has
fully recovered from his knee injury.
“The injury has passed and now I’m
able to help my team-mates, so it’s time
to enjoy it,” he said.
Photographer robbed at gunpoint
A WORLD CUP photographer was held at
gunpoint during a burglary of lodges used
Tuesday night, it has been revealed.
Antonio Simoes was woken up by two
burglars, who held him down while they
took his camera, cash and credit cards.
Laptops, mobile phones and cash from
other rooms were also stolen in the lodge
in Magaliesburg town, north of
Simoes said: “It was just two minutes
but it felt like two hours. It was the scari-
est thing that has ever happened to me.”
CITYA.M. 10 JUNE 2010
We’ll silence
the Wallabies,
vows Cueto
▲
RUGBY UNION
BY JON COUCH
MARK CUETO says England can leave
the Wallabies hopping mad with a
shock victory in the first Test on
Saturday.
The Sale wing is an expected starter
in Perth after sitting out the 28-28
draw with the Australian Barbarians
in the opening tour match on
Tuesday.
But despite Martin Johnson’s men
being massive underdogs in their
quest for only a third victory over the
Wallabies in their own back yard,
Cueto says confidence in the camp is
high.
“There’s no point going into any
game without believing that you’re
going to win,” the 30-year-old said.
“You’ve obviously got to appreciate
who you’re playing and respect who
you’re playing and we respect the
Aussies massively, particularly out
here in their own back yard.
“But if everyone produces a 100 per
cent performance on Saturday then
we’re definitely capable of winning
the game. It’s going to be tight and we
don’t expect to get the upper hand in
any area particularly, but if we do
then happy days.”
Johnson received some welcome
news ahead of Saturday’s Test with
the news that the two stamping
charges lodged against lock Dave
Attwood from the Barbarians game
were dismissed yesterday.
Rugby Football Union chiefs argued
the case could not be impartial as the
citing commissioner was Australian.
Johnson has also moved to call up
Northampton’s Phil Dowson to his 44-
man squad to replace the injured
Hendre Foure.
Leeds flanker Foure will return
home on Sunday after suffering calf
and ankle strains in the Barbarians
match.
l Meanwhile, UK Sport boss John
Steele has been named as the RFU’s
new chief executive.
The former Northampton player
and coach succeeds Francis Baron,
who is stepping down after 12 years.
Sport 31
RAFA’S THE KING OF QUEEN’S SPORT | IN BRIEF
Massa pens new Ferrari deal
FORMULA ONE: Felipe Massa has
signed a new two-year deal to keep him
at Ferrari until the end of 2012.
The Brazilian’s future was brought
into question after consistently strug-
gling to match the pace of team-mate
Fernando Alonso this year.
Indeed, the announcement comes just
days after Mark Webber – touted as a
possible replacement for Massa – signed
a contract extension at Red Bull.
Massa said: “It’s a matter of pride to
continue working with a team that I
regard as my second family.”
Dilshan fires Tri-series win
CRICKET: Tillakaratne Dilshan struck an
unbeaten century to help Sri Lanka
record an emphatic nine-wicket win
over Zimbabwe to clinch the one-day tri-
angular series in Harare.
Zimbabwe, who eliminated India and
beat Sri Lanka in the group stages,
could only manage 199 with Tatenda
Taibu top scoring with 71.
But Dilshan led the reply in fine style,
smashing 14 fours in a 102-ball knock of
108, as Sri Lanka cruised to victory with
92 balls to spare.
Great Leighs close to the end
RACING: Great Leighs, Britain’s first
new racecourse for 81 years, looks set
for redevelopment after no buyer came
forward.
The course, near Chelmsford, went
into administration in January last year,
just nine months after opening.
WORLD No1 Rafael Nadal began his grass-court season with a comfortable 6-2, 6-2 victory Administrators, Deloitte, have been
over Brazilian Marcos Daniel in the Aegon Championship at Queen’s Club. Nadal is joined desperately trying to find a buyer but
in round three by second seed Novak Djokovic, who beat Italy’s Paolo Lorenzi 6-3, 6-3. have now given up hope, prompting
Britain’s No1 Andy Murray is back on court for his third-round match today when he talks with principal lender, RBS, about
takes on Mardy Fish after the American beat Columbian Santiago Giraldo. Picture: PA “the next step”.