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Issue 1,159 Monday 21 June 2010 www.cityam.com FREE

OSBORNE SET FOR Barclays to


deny foul
play in bid
PAINFUL BUDGET

BANKING
BY OLIVER SHAH
BARCLAYS president Bob Diamond
POLITICS will today deny the British bank

BY DAVID CROW Chancellor to planned to pocket a secret $11bn


(7.5bn) windfall when it bought
THE chancellor will deliver the tough-
est Budget in almost 30 years tomor- announce tax hikes Lehman Brothers US brokerage at
the height of the financial crisis.
row with a mixture of swingeing In a resumption of the bitter legal
public spending cuts and painful tax
hikes.
and spending cuts wrangle between Barclays and parties
representing Lehman Brothers,
Yesterday, he warned the public to Diamond is expected to tell a New
expect tough but fair measures.
In a sign that the chancellor is ready
Ex-Labour minister York bankruptcy court it would be
unfair to renegotiate the deal nearly
to tackle vested interests in the public
sector, he appointed former Labour appointed to review two years after Lehmans collapse.
Diamond will be cross-questioned
minister John Hutton to lead a com-
mission into public sector pensions.
The public sector pension bill is
public sector pensions by lawyers for Lehman Brothers cred-
itors, its trustee and its estate. The
three groups allege Barclays Capital,

Bank levy set to


unsustainable and we do have to tack- Barclays investment banking arm,
le it, said Osborne. unfairly profited from its $1.9bn buy-
Hutton was immediately branded a out of Lehman Brothers in September
collaborator by former Labour
deputy leader John Prescott, who
raise considerably 2008 by arranging a hidden profit
that would kick in after the takeover.
accused him of helping the coalition
to dismantle state pensions. more than 1bn They claim Lehman Brothers gave
Barclays Capital $4.2bn to cover liabil-
Others said Huttons appointment ities such as bonuses and redundan-
could well lead to a pensions levy Osborne announced a bank levy in a speech last week and has appointed John Hutton (inset) to review public sector pensions Picture: PA cies. Barclays Capital booked a further
being imposed on recipients of public $5bn profit by rearranging a repur-
sector pensions. High earners are expected to shoul- Families earning over 40,000 will There will be a handful of sweeten- chase agreement with the Federal
The chancellor is hoping that by der a large proportion of the fiscal see their benefits slashed while the ers, with an increase in the income tax Reserve, lawyers say, with the remain-
introducing the most unpopular meas- tightening. There are fears that the top majority of public sector workers will threshold, while businesses will broad- der of the $11.2bn inheritance com-
ures early on, he can convince the pub- rate of pensions tax relief will be take a pay freeze for two years. ly welcome plans to lower corporation ing from extra Lehman Brothers
lic he is paying for 13 years of Labours changed while the 50p rate will stay. An increase in VAT is also widely tax. assets seconded at the 11th hour.
economic mismanagement. And despite a series of high-level expected. The chancellor could raise The threshold for employer National Lawyers acting for the three
Osborne will hammer the banks campaigns against an increase in capi- some 4.5bn a year by adding 1p to the Insurance contributions will also be Lehman Brothers plaintiffs accused
with a new levy on their balance tal gains tax (CGT), including one in existing 17.5 per cent rate. increased in a bid to kick start a pri- Barclays Capital of purchasing the US
sheets, and coalition sources yesterday this newspaper, the chancellor is Vice taxes on alcohol and cigarettes vate-sector recovery, while firms in brokerage at a discount, and say the
suggested he now expects to raise con- expected to hike rates on non-busi- will will be hiked, along with new areas where huge swathes are British bank did not give details of the
siderably more than the 1bn that ness assets with a series of reliefs for taxes designed to make people more employed by the public sector will be windfall to the bankruptcy judge in
was originally mooted. entrepreneurs. conscious of the environment. given tax breaks. MORE: P7-11 charge, James Peck.

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3/05/10 - 30/05/10 is 106,097

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Chris Higson, Visiting Associate Professor of Accounting, London Business School

Corporate Finance Evening Programme Leading Financial Thinking

Book now for 29 September 2010


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2 News CITYA.M. 21 JUNE 2010

Public sectors turn to face recession NEWS | IN BRIEF


China move spurs markets
The Australian dollar jumped more than
1 percent and the euro hit a three-week
higher, or 30 per cent higher on an tor organisations by the Cabinet and other frontline workers. But the high against the U.S. dollar in trading
hourly basis, a gap that astonishingly Office, just 13 per cent of employees pain must now be spread in a fairer today as investors took China's commit-
is still growing and that is even disagreed with the statement that and more sensible way. ment to allow more yuan flexibility as a
before other benefits are accounted their organisation is too lenient with Labour set in train a real terms cut signal to buy riskier assets.
for. Private employees work 23 per people who perform poorly here. Less in public sector wages by capping pen- China said on Saturday it would gradual-
cent more hours (9.2 years of a public than 1 per cent of civil servants take sion contributions and promising to ly make the yuan's exchange rate more
sector employees working life) over voluntary redundancy each year, and limit pay increases to 1 per cent. flexible, indicating it was ready to break
their lifetime, thanks to shorter just 0.00007 per cent a year have suf- Ireland is implementing a 10 per cent a 23-month-old U.S. dollar peg that had
EDITORS LETTER hours, more time off and earlier fered a compulsory redundancy. reduction in pay, three quarters of come under intense fire from abroad.
retirement in the public sector. Many low-paid workers such as which takes the form of increased "Whether there are further gains will
ALLISTER HEATH As an report from Policy Exchange cleaners have been contracted out of pension contributions the so-called depend on how Asia trades its own cur-
reveals, between 1997 and 2008 the the public sector but this does not in public sector levy. Portugal has also rencies and on the yuan against the U.S.
IT hasnt been fun being in the private proportion of public sector workers fact explain the wage differential. The targeted the pension bill, along with a dollar fixing rate later today," said
sector in recent years. It bore all of the without pension provision from their gulf remains for equivalent job cate- 5 per cent wage cut. In France the pub- Westpac senior currency strategist Imre
cost of the recession, with more than employers fell to 16 per cent. In the gories (such as state sector managers, lic sector is not replacing half of Speizer. MORE: P5
100 per cent of the contraction in private sector this rose to 63 per cent. whose numbers are up 80 per cent retirees. The Netherlands have intro-
GDP falling on private firms the pub- Almost 80 per cent of public sector since 2002) and holding other factors duced a one year wage freeze, Greece a BASF SEALS 2.8BN DEAL
lic sector, meanwhile, continued to workers are in defined-benefit constant. The nationalised banks four year freeze. Spain is pursuing 4 Chemical giant BASF is poised to buy
expand. Wage growth has been weak scheme, against just 8 per cent in the dont explain the gulf either. per cent cut in the total pay bill. It has German specialty chemicals company
to non-existent for most private work- private sector. Such pensions are It is clear that the public sector also introduced a ten out, one in Cognis for at least 3.3bn (2.8bn)
ers over the past couple of years, there worth an extra 12-15.6 per cent of total needs to shoulder more of the burden; rule. Regardless of which method reports the Wall Street Journal. The deal
has been a sharp drop in employment salary, depending on estimates. the deficit may be slightly lower than George Osborne ends up adopting, was agreed this weekend, when Cognis
and hardly any firms can afford to Job security is another benefit: dur- expected but it remains cripplingly one thing is unfortunately clear: the and its owners, who include Goldman
offer pensions any longer. ing the recession, workers in manufac- high at around 150bn. I dont say this public sector is entering a recession Sachs and private equity group Permira,
The gulf with the public sector has turing were 16 times more likely to with any joy, especially given the that will be as painful as that which rejected a higher offer from Lubrizol. An
become striking: the median salary in lose their jobs than public sector staff. importance of the work performed by the private sector has been forced to announcement on the deal is expected to
the public sector is now 12 per cent In a survey of 60 different public sec- nurses, doctors, teachers, the police endure. allister.heath@cityam.com be made this week.

7th Floor, Centurion House,


24 Monument Street,
London, EC3R 8AJ
BPs Hayward
to head east
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
region, with the other half owned by
Associate Editor
Lifestyle Editor
David Crow
Zoe Strimpel
BP IN CRISIS Alfa Access-Renova, a consortium of ECB president Jean-Claude Trichet wants stricter Eurozone finance rules Picture: REUTERS
Art Director Darren Soulsby BY EMMA SADOWSKI businessmen.

ECB: More fiscal policing


Pictures Alex Ridley Next to the US, Russia is one of the
TONY HAYWARD, BPs embattled most important regions to BP, which
Commercial chief executive, is to launch a Russian is understood to produce one in four
Sales Director Jeremy Slattery charm offensive in a bid to calm the of BPs barrels.
Deputy Sales Director Harry Owen nerves of President Dmitry Medvedev A spokesperson for BP said he
Head of Distribution Nick Owen over the groups future. would not give a running commen-
Although the timing of the meet- tary on Haywards movements and WORLD ability, with an independent agency

Distribution helpline ing has yet to be confirmed, Hayward would not confirm the meeting with policing governments tax and spend-
If you have any comments about the distribution BY HARRY BANKS
of City A.M. Please ring 0207 015 1230, or email intends to meet with Medvedev to Medvedev. Hayward was facing criti- ing decisions. According to an ECB
distribution@cityam.com reassure him that BP can survive the cism after being spotted with his son THE European Central Bank presi- paper released last week, sanctions
liabilities of the oil spill in Louisiana at a yachting event over the weekend. dent Jean-Claude Trichet is today for countries flouting fiscal rules
Editorial Statement that has created dloubts about the MORE: P14-15 expected to set out strict proposals to could include cuts in EU aid, suspend-
This newspaper adheres to the system of groups future.. stop further financial crisis in the ed voting rights or policing by outside
self-regulation overseen by the Press Complaints The Russian president expressed Hayward will be hop- Eurozone. experts.
Commission. The PCC takes complaints about the concern on Friday over the Gulf of The ECBs first plan is to rule out The ECB document also suggested
editorial content of publications under the Editors ing he has more suc-
Mexico oil spill and said he feared the expulsions from the 16-country setting up a crisis management insti-
Code of Practice, a copy of which can be found at
costs would lead to the "annihilation" cess batting for BP in group, to stop market jitters. tution which could rapidly buy
www.pcc.org.uk
of BP. Moscow than he has Under Trichets proposals, Eurozone government bonds to
Printed by Newsfax International,
Beam Reach 5 Business Park, BPs Russian joint venture, TNK-BP, had in the US Eurozone finance ministers would quickly address disruptions in sover-
Marsh Way, Rainham, Essex, RM13 8RS is the third largest oil group in the become guardians of fiscal sustain- eign bond markets.

WHAT THE OTHER PAPERS SAY THIS MORNING


AMAZON HAS DESIGNS ON FASHION
Amazon, the largest online retailer, is
relaunching its online clothing and
JPMORGAN PUSHES ON WITH TALKS shoe business with a focus on high- MANUFACTURERS SLAM GOVERNMENT MILLIONS IN THE PUBLIC SECTOR TO FRANCE TELECOM MOVES CLOSER TO
OVER BRAZILIAN HEDGE FUND end style as it vies with rivals such as CLIMATE CHANGE BILL PAY MORE FOR PENSIONS LE MONDE BID
JPMorgan Chase is pushing ahead Yoox and Net-A-Porter in the expand- Britain's manufacturers have con- Public sector workers will be expected France Tlcom was yesterday plan-
with talks to buy a large Brazilian ing online fashion market. US online demned the government's climate to pay hundreds or even thousands of ning to bid as much as 60m (50.2m)
hedge fund and private equity group, sales of clothing, shoes and acces- change policy as "chaotic, overcrowd- pounds more each year into their pen- for French daily Le Monde and its
in spite of impending US legislation sories increased 17 per cent last year ed and complicated" and are calling sion pots, as the era of early retire- website, according to a spokeswoman
designed to limit the involvement of to $27bn, according to Forrester on George Osborne to use his emer- ment on generous payments is for the telecommunications group.
commercial banks in such activities. Research. Amazon is recruiting soft- gency budget to introduce an econo- brought to an end. A new government France Tlcom has formed a consor-
People close to the situation said the ware engineers who it says will build my-wide carbon tax. The commission, led by John Hutton, tium with two other companies to try
US financial group was in advanced great new feautures that change the manufacturers' organisation EEF says could recommend that public sector to buy a majority stake in Le Monde,
discussions to buy Gvea way people shop for clothing. a new single levy based on energy staff begin paying more towards their the struggling newspapers publish-
Investimentos, an asset management usage to replace the existing mix of retirement as early as next spring. ing company.
company that manages about $5.3bn FEAR OVER DEARTH OF ENGINEERS IN climate measures would simplify the
(3.6bn) in assets. EUROPE system. RAHM EMMANUEL TO QUIT AS WHITE CITI MOVING PRIVATE-EQUITY VETER-
Europe needs to take urgent action HOUSE CHIEF OF STAFF AN TO ASIA
F&C IN HEDGE FUND LEGAL BATTLE on skills and education to encourage TUC CRITICISES CBI LABOUR IDEAS Rahm Emanuel, the White House Citigroup said it is moving veteran
Asset management company F&C is young peeople to become engineers The TUC has condemned new propos- chief of staff, is expected to leave his private-equity banker Chris Laskowski
embroiled in a High Court battle with or risk losing out to China and India als from the business lobby group CBI job later this year after growing tired back to Asia to join senior manage-
two hedge fund managers over as a manufacturing power, according to make it harder for workers to strike of the "idealism" of Barack Obama's ment, a signal the US bank believes a
whether it was valid for the men to to the continents leading industrial- as a charter for exploitation at inner circle. Washington insiders say pickup in the regions buyout activity
exercise a series of put options last ists. Chief executives and chairmen work. In a new report today, the CBI he will quit within six to eight will likely continue. Mr. Laskowski
year. The case, which begins this from Europes 50 biggest countries will call for a variety of labour market months in frustration at their unwill- will head a team of bankers dedicated
week, centres on a limited liability list the growing skills shortage as one measures it says will bolster business- ingness to "bang heads together" to to servicing buyout firms around the
partnership set up in 2004. of their biggest long-term concerns. es during the recovery. get policy pushed through. region.
CITYA.M. 21 JUNE 2010 News 3

CVC looks to invest


BSkyBs chief executive
Jeremy Darroch was quick
to urge staff forwards
after details of the News
Corporation bid were

in London Eye group


announced

Picture: REX

Blackstone, sovereign wealth fund


M&A
BY MARION DAKERS Dubai International Capital and the
Lego Group investment arm, Kirkbi
PRIVATE equity group CVC Capital is A/S.
close to purchasing a stake in theme Any deal would put an end to
park operator Merlin Merlins hopes of an initial public
Entertainments, which owns offering, following a shelved attempt
Legoland, Madame Tussauds and the four months ago.
London Eye. Reports suggests that CVC is reportedly set to buy a 30
CVC would buy a minority stake from per cent stake in the company, leav-
Merlins existing shareholders, which ing Blackstone, Kirkbi and the compa-
include rival private equity firm nys managers owning the remainder.

Stay focused,
urges BSkyB
boss Darroch

MEDIA on serving Skys customers and contin-


BY DAVID HELLIER uing to gow the company.
So far News Corporation has lodged
BSKYBS staff have been told by chief an indicative offer for the 61 per cent
executive Jeremy Darroch that they of the shares it doesnt own in Sky at a
should not be distracted by the near price of 700p a share.
8bn takeover bid launched last week I know that todays bid news will
by the groups largest shareholder generate a lot of noise and raise many
News Corporation. questions. But the important thing for
Darroch, who sits side by side on the all of us is that we do not get distract-
Sky board with directors who have ed. If there are further developments, I
rejected the bid claiming it does not will make you aware of them as quick-
fully value the satellite broadcasting ly as possible, Darroch wrote.
group, addressed staff in an email The groups independent directors
shortly after the announcement of the led by Nicholas Ferguson say the News
News Corp offer. bid substantially undervalues the com-
He urged staff to continue to focus pany.

This process could take a number of months, after which time News
Corporation will decide whether to go ahead with a formal offer and on
what exact terms.
I know that todays news will generate a lot of noise and raise many
questions. But the important thing for all of us is that we do not get dis-
tracted. If there are further developments, I will make you aware of
them as quickly as possible.
In the meantime, we must stay focused on our plan and on delivering
for customers. As our last set of results showed, the business is per-
forming well and we have an exciting opportunity ahead of us.

Unite union threatens round of


fresh industrial action at BA
Acas talks between the airline and

AVIATION
the union collapsed last week.
THE Unite union is expected to notify Unite has repeated its demands of
British Airways of another strike bal- the reinstatement of travel perks for
lot today, which if successful could employees.
mean widespread disruption during In a recent letter to cabin crew,
the peak of the holiday season. Unites joint general secretaries Tony
Unite has completed preparations Woodley and Derek Simpson said dis-
for a ballot and voting could com- ciplinary action taken against some
mence seven days after the union staff since the strikes began was vin-
puts BA on notice. dictive.
If BA flight attendants vote in Chief executive Willie Walsh has
favour of industrial action, the strike said the airline will fly through any
could begin as early as 3 August. further strikes.
Previous strike ballots have He said last week he expects the air-
received upwards of 90 per cent sup- line to operate 100 per cent of all long
port from union members. haul operations during the next wave
The expected ballot comes after of industrial action.
CITYA.M. 21 JUNE 2010 News 5

AgBank picks banks for $23bn


ANALYSIS l US dollar-Chinese yuan exchange rate over the past five years
8.4

8.2

7.8
Hong Kong-Shanghai flotation
the offering while its underwriters banks picked to underwrite the


BANKING
BY HARRY BANKS market the dual listing to institution- Shanghai-Hong Kong deal.
7.6 al investors. Qatar has agreed to The joint global coordinators take
THE Agricultural Bank of China has invest $2.8bn into AgBanks IPO, on the most responsibility for an IPO
chosen the banks to lead its more according to a report. and also stand to earn the biggest fee,
7.4 than $23bn (15.5bn) initial public AgBank, Chinas third largest which in the case of AgBank could be
offering (IPO), sources involved with lender, has selected its internal secu- one of the largest fee pools ever for an
the process said yesterday, a move rities unit, as well as CICC, Goldman IPO. Should the offering exceed
that finally sorts out the key roles for Sachs and Morgan Stanley as joint $21.9bn, it would be the largest IPO in
7.2 the deal. global coordinators for the offering, history, shedding around $450m in
AgBanks selection of its top banks granting these banks top status for fees to the banks at an estimated two
came as key investors swooped in on the IPOs handling among the 11 per cent charge.
7

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10

G20 wary on
China move to
de-peg yuan
meeting this week.

GLOBAL ECONOMY
BY VICTORIA BATES AND JESSICA MEAD The PBoC said the renminbi would,
despite its increased flexibility,
GLOBAL politicians at the weekend remain basically stable at an adap-
cautiously welcomed Chinas move to tive and equilibrium level going for-
de-peg its currency from the US dollar ward a statement which Societe
for the first time in almost two years, Generale analyst Glenn Maguire said
bowing to international pressure a carried the connotation that China
week before the G20 meets in Toronto. does not believe the yuan is signifi-
US President Barack Obama cantly undervalued and that it is trad-
labelled the new policy a construc- ing close to what Beijing would assess
tive step, although the response as its fair value.
from Washington was muted by the However, Maguire said even a gen-
Peoples Bank of Chinas (PBoC) tle appreciation of the yuan would
refusal to authorise a single large- prove a powerful tonic for growth
scale revaluation of the yuan. both in Asia and the rest of the world.
Instead, Chinese policymakers said Although Chinese exporters, who
it would make the exchange rate have benefited from strong demand
more flexible by determining the in the past few years due to an artifi-
yuans value on a daily basis with ref- cially weak domestic currency, will
erence to a basket of currencies, now find it more difficult to sell
allowing it to appreciate slowly and abroad, other sectors of the countrys
gradually against the dollar. The cur- economy stand to benefit from the
rencys existing 0.5 per cent daily move. Chinese banks will see their
trading band will remain unchanged. yuan-denominated assets appreciate
Analysts warned that the move, in line with the rising currency, while
although a welcome development, shares in the countrys top airlines
would be seen by some as a half- are also expected to rise in the short
baked attempt by Beijing to placate term, since their main operating
global policymakers ahead of the G20 costs are aircraft purchases overseas.

Q&A: CHINAS YUAN POLICY

Q. WHAT HAS BEEN ANNOUNCED BY


CHINESE OFFICALS? Q. WHY WAS CHINA
UNDER PRESSURE
TO REVALUE THE YUAN?
Q&A
A. The Chinese central bank said

A.
on Saturday it would gradually
make the yuans exchange rate more
Beijing had defended the peg in
the face of growing US and inter-
flexible from Monday. The yuan, also national presssure. By keeping its
known as the renminbi, was pegged currency cheap against the dollar,
to the dollar at 6.83 yuan in July China has made its imports appear
2008, ending three years of a man- more attractive. This has resulted in
aged floating exchange rate. a massive trade surplus in China.
A rebalancing of the yuan has been

Q. WHAT DOES THIS MEAN FOR ITS


FOREIGN EXCHANGE POLICY?
deemed necessary to prevent a fur-
ther build up of global imbalances. If
the US is still assumed to be both the

A. There will be no one-off move;


instead, there will be a gradual
increase in dollar-yuan daily fixings
consumer and importer of last
resort and thus goes back to run-
ning large current account deficits
to around 10-20 basis points from 1-2 then this would risk a repeat of
points. recent history.
CITYA.M. 21 JUNE 2010 Budget and Politics News 7

WHAT WILL THE EFFECTS BE OF LIKELY Airlines warn


City expects BUDGET MEASURES? Interviews by Jessica Mead

SIMON HAYES | BARCLAYS CAPITAL


over air levy
budget cuts Higher taxes, large cuts in public services and
and tax hikes


reduced welfare payments all seem likely. We would expect
it to be viewed positively by financial markets.


AVIATION

UK ECONOMY to rein in the public finances. AIRLINES have warned that the gov-

BY JESSICA MEAD Barclays Capitals Simon Hayes MICHAEL SAUNDERS | CITIGROUP ernments plans to increase the


envisages policies that would aim to departure levy could see passengers
CITY economists have broadly backed cut the structural deficit by 8 per cent avoid the UKs airports.
the chancellors plans to launch what of GDP over the parliamentary term. A tightening of 25bn, split between a 10bn tax hike It is thought that the rise in the


could be the sharpest fiscal tightening This implies tax rises of about 24bn and eventual spending cuts of 15bn. This should mean a levy, which is set for November, will
in Britains post-war history but warned and spending cuts worth 94bn. cost a family of four travelling abroad
that the squeeze could harm still-feeble Such a plan would be viewed posi- drop in the deficit and a more sustainable recovery. up to 300 extra in taxes a year.
growth. tively by financial markets and would The government is also planning to
Despite the improving fiscal trend, go some way towards assuaging the tax airlines on the number of planes
George Osborne is expected to intro- concerns expressed by rating agen- PETER DIXON | COMMERZBANK they operate rather than the number


duce additional tightening measures cies, he said. of passengers are being carried.
in his first Budget tomorrow to put Citigroups Michael Saunders has British Airways (BA) argued air trav-
the public finances onto a more sus- pencilled in an immediate 10bn tax We are doubtful that the private sector is strong el in the UK is already the most heavi-


tainable footing. Analysts agree that it hike most likely through a higher enough to take more of a near-term squeeze than 0.5 per cent ly taxed in the world.
is important for the new government Vat rate. Although he admitted that The airline said in a statement:
to deliver a credible package that will growth would consequently not be of GDP worth of spending cuts and a hike in VAT. Increased taxation on the UK avia-
keep the financial markets and rat- spectacular, improving fiscal trends tion industry will create a financial
ings agencies at bay. should make the recovery far more incentive for customers to fly via
Although some, such as Capital sustainable than many currently JONATHAN LOYNES | CAPITAL ECONOMICS Continental hubs rather than direct


Economics Jonathan Loynes, think believe. from or transitting through UK air-
that spending cuts will hamper However, Commerzbanks Peter ports.
growth prospects, there is little talk of Dixon points out that multi-year While a better fiscal position will improve the econ- Budget rival easyJet said that it


Britain plunging back into recession. departmental spending plans will omys long-run prospects, we are certain that the consolida- does not support the rise in a depar-
Instead, the vast majority welcome limit the chancellors room for ture levy, but favours the new per
the coalition governments attempts manoeuvre tomorrow.
tion will act as a major drag on the economy. plane tax.

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BBA chief executive Angela Knight opposes the proposed tax Picture: PA
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skills to
which includes small business lend-
SENIOR members of the banking ing, the very area ministers are trying very highest
very highest level.
level.
community yesterday implored chan- to support.
cellor George Osborne to reconsider Some of Britains most powerful
plans to introduce a sweeping tax on bankers have also been quietly urging JJoin
oin us on 3 July
July at our M BA
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bank balance sheets, arguing that a the government to rethink the plan, Experience d
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Osborne is set to outline details of balance sheet levy is not the best way V isit w
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That would mean that banks would thought through extremely carefully
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measure pitting assets against their the sector.
reliance on the wholesale markets, Osborne is expected to announce The application
The application deadline
deadline for
for the
the
rather than handing over an easily- tomorrow that the tax will aim to W omen iin
Women nB usiness and
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Angela Knight, chief executive of 3bn.
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Clearly with such a measure the gov- levy in his maiden Mansion House
ernment would be trying to target speech to the banking and finance
risky practices in particular, but the industry. www.cassmba.com
w ww.cassmba.com
banks worry is that target might well Osborne said: There are real issues
end up being much wider than antic- of fairness. That is why we will intro-
ipated. Just one example could be duce a bank levy and demand further
that banks start shedding assets seen restraint on pay and bonuses.
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CITYA.M. 21 JUNE 2010 Budget and Politics News 9

UK MONTHLY HOUSE PRICE CHANGES


North West
Avg. Price June 2010 169,819
North
Avg. Price June 2010 152,118
Yorkshire & Humberside
Avg. Price June 2010 163,744
CBI: Britain needs tougher
strike laws and flexi working
Avg. Price May 2010 167,317 Avg. Price May 2010 151,525 Avg. Price May 2010 166,490
Monthly Change 1.5% Monthly Change 0.4% Monthly Change -1.6%
Avg. Price June 2009 170,562 Avg. Price June 2009 141,430 Avg. Price June 2009 155,337
Annual Change -0.4% Annual Change 7.6% Annual Change 5.4%

West Midlands East Midlands


Avg. Price June 2010 189,049 Avg. Price June 2010 165,532
Avg. Price May 2010 195,433 Avg. Price May 2010 166,009
Monthly Change -3.3% Monthly Change -0.3% on industrial action and enforcing cating for a tightening of ballot rules


EMPLOYMENT
Avg. Price June 2009 186,420 Avg. Price June 2009 162,318 flexible working during a time of including ensuring that 40 per cent
BY EMMA SADOWSKI
Annual Change 2.5% Annual Change 2.0% recession. of a balloted workforce supports the
TOUGHER INDUSTRIAL relations and John Cridland, CBI Deputy call for strike action.
Wales East Anglia flexible working are among some of Director-General, said: As we enter a The CBI has argued that employees
Avg. Price June 2010 168,951 Avg. Price June 2010 221,944
the measures proposed today by the period of fragile recovery, we need to should be given the right to choose
Avg. Price May 2010 170,562 Avg. Price May 2010 222,866
Monthly Change -0.9% Monthly Change -0.4%
CBI to maintain Britains job market. do everything we can to create a jobs flexible working in the future.
Avg. Price June 2009 168,300 Avg. Price June 2009 207,166 A report by the business advocacy market that works for Britain, and to Meanwhile, a sustainable employ-
Annual Change 0.4% Annual Change 7.1% group unveiled a number of meas- ensure Britain is the place to work. ment test should also be implement-
ures the government should adopt, As industrial disputes continue to ed, according to the CBI, which said
including blocking regulations that hit Britains telecommunications and that future labour laws should help
will cost jobs, taking a tougher stance transport industries, the CBI is advo- to create and not hinder job growth.

Increases
Source: Rightmove

Decreases
(from previous month)

North West
South South East Greater London
Avg. Price June 2010 257,502 Avg. Price June 2010 308,920 Avg. Price June 2010 429,597
Avg. Price May 2010 256,514 Avg. Price May 2010 306,674 Avg. Price May 2010 420,203
Monthly Change 0.4% Monthly Change 0.7% Monthly Change 2.2%
Avg. Price June 2009 244,511 Avg. Price June 2009 289,528 Avg. Price June 2009 397,140
Annual Change 5.3% Annual Change 6.7% Annual Change 8.2%

Austerity hits
house prices If youre an expat living
in the UK, take advantage
of our expat expertise
times for sellers and tenants, with

PROPERTY
BY JESSICA MEAD more properties for sale and fewer 57N Scotland
finding their way into landlords
SEVERE austerity measures and an hands.
uncertain economic climate will kill According to Rightmove, the aboli-
off the recovery in house prices, prop- tion of Home Information Packs If youre living as an expatriate in the UK, you may not
erty website Rightmove will warn (Hips) caused a 22 per cent increase in be aware of the opportunities that offshore banking can
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likely to put an end to this years and Wales covered by the survey Take advantage of our expat expertise:
recovery in house prices. reported negative monthly changes.
He added: A surge of Hip-free prop- Only London managed to post a Visit www.offshore.hsbc.com/am
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Job fears hit new high in June

FINANCIAL SERVICES month, compared to seven per cent


who felt their financial prospects had
CONFIDENCE in job security fell at improved, said YouGov and Markits Issued by HSBC Bank International, a trading name of HSBC Bank International Limited, HSBC House, Esplanade, St Helier, Jersey
JE1 1HS. HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance
the fastest level since September 2009 monthly Household Finance Index. Mediation, Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking,
in the last four weeks, with house- Job fears remained more pro- Collective Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Copies
of the latest audited accounts are available on request. Approved for issue in the UK by HSBC Bank plc, 8 Canada Square, London
holds also reporting dwindling sav- nounced in the public sector, as more '*3&GRQUKVUCPFKPXGUVOGPVUOCFGYKVJPQP7-OGODGTUQHVJG*5$%ITQWRFQPQVDGPGVHTQOVJGRTQVGEVKQPRTQXKFGF
ings and concerns over debt, details over public sector cuts emerge, under the UK Financial Services and Markets Act 2000, including the Financial Services Compensation Scheme. To help us to
according to a survey out today. and 24 per cent of all respondents continually improve our service, and in the interest of security, we may monitor and/or record your communications with us.
HSBC Bank International Limited 2010. All Rights Reserved. MC8245AC18141/SJ/2206322
More than a quarter said their believed their jobs are less secure
finances had deteriorated in the last than last month.
10 Budget and Politics News CITYA.M. 21 JUNE 2010

Private firms
Hutton to lead lose out in race
public sector for RDA grants


POLITICS

pension probe
BY DAVID CROW
CLAIMS that regional development
agencies (RDAs) are there to help pri-
vate businesses were exposed as false
yesterday, after it emerged 62 per cent
of grants were funnelled back into the
public sector.

POLITICS tions from their employer. For those Research from the Taxpayers
BY DAVID CROW that do, the average contribution is 10 Alliance shows public sector organisa-
per cent almost half the 18 per cent John Hutton was ennobled in the dissolution honours list tions and projects received 1.8bn in
FORMER Labour cabinet minister that public sector workers enjoy. grants between 2007-09 out of a total
John Hutton has been appointed by And according to figures in the of 2.9bn.
the coalition government to lead a recently-released Office for Budget LORD JOHN HUTTON Labour party. He counts the likes of Trade unions which donated
commission into public sector pen- Responsibility report, the gap Alan Milburn, John Reid and Tony Blair almost 10m to the cash-strapped
sions. between the contributions made by LABOUR PEER as his closest allies and is a long-stand- Labour party last year were among
Announcing the appointment, public sector workers and the payout ing advocate of public service reform. the biggest beneficiaries, receiving
chancellor George Osborne said it was they eventually get is set to more than When Brown seized the party lead- over 3m in grants in the two-year
unsustainable to expect taxpayers to double over the next four years to ership and with it the premiership in period.
cough up for public sector pensions. 9bn. 2007, Hutton stayed on as a cabinet According to the figures, which
Hutton, a former secretary of state Hutton will also be asked to exam- minister. But he became increasingly were only released following a
for work and pensions, will be asked ine ways to encourage people to save disillusioned as Brown turned away Freedom of Information request, the
to find ways to make public sector more for their retirement and to work JOHN HUTTON might sit on the Labour from the New Labour project in favour Trades Union Congress walked away
pensions more affordable. for longer. benches in the Lords, but he agrees of greater centralisation. After step- with a staggering 2.6m in RDA
According to Treasury figures, the He will present interim findings in with George Osborne on at least one ping down as a cabinet minister in grants.
total cost of unfunded public service September ahead of a comprehensive thing: in the run up to the Labour lead- June 2009, he kept his reservations to The Liberal-Conservative coalition
pensions in 2010-11 is estimated at a spending review, before delivering the ership election of 2006, he told BBC himself; that loyalty likely helped him had promised to scrap the hugely
staggering 25.4bn more than twice final report in time for the 2011 political editor Nick Robinson that secure a peerage in Browns dissolution expensive quangos, although business
the cost of child benefit. Budget. Gordon Brown would be a f***ing dis- honours list. secretary Vince Cable has since said he
The chancellor believes it is unfair Reform of public sector pensions is aster as Prime Minister. Osborne has picked an ex-Labour will keep those that are popular with
for taxpayers that work in the private a huge challenge for both the public In truth, the chancellor and Hutton minister for this job precisely because local businesses.
sector to fund public sector pensions, finances and the public sector work- are politically closer than it first he wants to be bold. The kind of radical If the government were to scrap all
especially when their own pensions force. I welcome the opportunity to appears. The former business, work reforms he expects Hutton to come up of the RDAs, it could afford to cut the
are increasingly meagre. lead a root and branch examination and pensions, and defence secretary with could never be sold to the public rate of small business corporation tax
Only a third of private sector of both the short-term and longer- was always on the right wing of the sector by a Tory. David Crow by 3.7 per cent, the Taxpayers Alliance
employees now get pension contribu- term options for reform, said Hutton. said.
CITYA.M. 21 JUNE 2010 Budget and Politic News 11

HUHNE LEAVES WIFE Cameron tells


3 0 T H J U N E / 1 S T J U LY 2 0 1 0
public to back 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
British troops
BAHRAIN K U WA I T OMAN Q ATA R SAUDI ARABIA UA E

POLITICS


BY DAVID CROW
THE public needs to support British
Everything you need to
troops more loudly and more proud-
ly, the Prime Minister has said ahead
of next weeks Armed Forces Day.
know about investing & doing
David Cameron said his recent trip
to Afghanistan had reminded him of
the sacrifices made by the military.
business in the Gulf States
He said he hoped to see an explo-
sion of red, white and blue when the
country celebrates the armed forces
next Saturday.
Writing in the Daily Telegraph, the
Prime Minister warned the inquiry
into Bloody Sunday was in danger of
trashing the reputation of our
armed forces and the pride they
inspire.
He added: Over the past few years
theres been an increasing apprecia-
tion of what our Armed Forces do.
CHRIS HUHNE, secretary of state for energy and climate change, has confirmed But still I believe we should do more.
he is leaving his wife of 26-years after revelations about his relationship with a He said that society not just gov-
former assistant. He said he was now in a serious relationship with Carina ernment needed to show stronger
Trimingham, head of campaigns at the Electoral Reform Society. Huhne empha- backing for the troops considering
sised the importance of family during his campaign. Picture: REUTERS the risks they take for the country.

Free Exhibition Free Seminars


Redwood calls for a Free Networking
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CITY A.M. things you tax them. If you want to per cent, well below the current 18
www.gccbritainexpo.com

@
CAMPAIGN promote things, you lower the rate
and then youll get more revenue.
per cent flat rate.
Redwoods comments came as
BY VICTORIA BATES Redwood, who has backed City leading think tank the Adam
A.M.s own campaign against the Smith Institute warned that the
JOHN Redwood, the Tory MP lead- hike, beseeched Osborne to reduce Treasury faces a tax revenue loss of
ing a Westminster campaign long-term CGT on both business 2.48bn if the CGT hike goes ahead.
against government plans to raise and non-business assets down to 10 And the Royal Institute of
capital gains tax (CGT), yesterday Chartered Surveyors warned a CGT
urged George Osborne to rethink Conservative MP rise would deter investors from
the proposals, just hours before his entering the buy-to-let market. RICS
first Budget as chancellor. John Redwood has also said a hike could precipitate a
Lets make a statement; lets say stepped up calls for fire sale of properties by land-
Britain is open for business, Osborne to drop the lords looking to avoid the increase, FOR MORE NEWS
Redwood said. We really want
enterprise. If you want to stop
planned rise in CGT derailing a fragile improvement in
sentiment in the sector.
www.cityam.com
The Capitalist
12 CITYA.M. 21 JUNE 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

NOMURA The banks


new digs
READY FOR boast the
largest roof
ROOF WITH space in the
A VIEW whole of
Europe, split
Only weeks to go now before the biggest over two
decampment the City has seen in a while;
Japanese bank Nomuras move back to the terraces
City from the Canary Wharf offices it
inherited from Lehman Brothers a few
years back. The bank, which will move its the Isle of Wight at the weekend for the JP
staff floor by floor to minimise disrup- Morgan Asset Management Round the
tion, starting on 12 July, is getting a tad Island race, but how did he actually fare
excited about the Watermark Place office. out there on the water?
No wonder, either if the Met Offices Not half bad, actually Haywards boat
predictions of a scorching summer are to As one savvy Nomura schmoozer to the World Cup tournament so far. But Main pic: Nomura Bob made it round the course in six
be believed (we can but hope), their remarked: Were going to be able to host those in the latter category will be delight- staffers will have plen- hours and 16 minutes, which is pretty
employees are going to have something of some epic parties out there. ed to know that it may soon become a ty of scope to enjoy respectable for a Farr 52 monohull.
a treat in store. Not only does the new Ill say. Are we all invited? thing of the past. Audionamix, a Paris the summer at But it was another businessman who
cafeteria look out over the Thames, com- technology firm, is in talks with ITV to Watermark Place was really celebrating after the race,
plete with outdoor tables and chairs, but license software that filters out the blare namely Mike Slade, the chief executive of
the banks new digs also boast the largest
outdoor roof space in the whole of
TRUMPET BLOWER of the South African horns from football Above right: Salty property group Helical Bar, whos no
Love it or hate it, the vuvuzela horns games without losing other sounds. seadog Mike Slade at stranger to the waves in his Icap Leopard
Europe, split over two separate terraces. incessant drone has been the soundtrack Audionamix, half-owned by Richard the tiller yacht. Slade was gunning for a record at
Bernsteins Eurovestech, has already sold the event, but missed out due to the boat
the technology to French TV portal being held up after it caught on a heavy
Canal+, which began offering viewers the lobster pot.
ability to turn vuvuzelas off last week. Still, he managed to take line honours
with a time of just over five hours.
Thankfully we had a young diver on
ELLO ELLO board who free-dived below and cut off
Congratulations to Patrick Rarden (pic- [the lobster pot], Slade laughs. We
tured right), the former Icap equity broker thought we had slowed up and when we
and City veteran, who last week picked up saw the size of the obstacle we realised
a Westminster award for his efforts out- why. Sadly there was nothing in it.
side the office, pounding the streets of
the Square Mile on the beat.
Rarden has been a special constable
volunteer in the City of London police
AND ALL THAT JAZZ
Regular readers may recall the name of
for the past three years, giving stockbroking veteran John East, deputy
up a hefty 587 hours of his own chief of Merchant John East Securities,
time in the past year alone to who made a musical comeback earlier
help the force. Alongside his this year, playing the Hammond organ at
patrol work, he also provides a jazz gig in Chelsea. East is now planning
training for officers on the his next gig at the 606 Club, on 28 July,
intricate workings of the and his ambitions dont stop there.
financial markets, helps with The last gig was recorded and we were
high-level fraud investigations going to put it out as a CD, but I think Im
and has also set up his own going to wait until after the next one in
charity, Waste Not Want Not, to case there are a couple more numbers
distribute discarded food from worth including, East tells me, explain-
Eat sandwich shops to rough ing that the mix will be a mix of classics
sleepers in the City. Puts the rest and new numbers, to ring the changes.
of us to shame, doesnt it? Its worth a listen, too not only has he
been playing since his early teens, but the
musical maestro was also formerly a
OPEN WATER founder of CityAid, the Square Miles
Much has been made of besieged answer to LiveAid, in the Eighties.
BP boss Tony Haywards jaunt to

BILL OF THE WEEK

AUSTERITY still seems to be the order of the day, if this little group dining
at Camdens Gilgamesh restaurant last week are anything to go by. Our din-
ers barely touched their alcohol, claiming that theyd stick to a simple
splash of bubbly (a few bottles of Louis Roederer Cristal, natch) because
they had to stay sober to get back to the office afterwards. Whatever hap-
pened to the good old days of liquid lunches that lasted until well after sun-
down?
Mind you, the connoisseurs made up for it with a mouth-watering selec-
tion of food, including the restaurants signature smoked eel sushi, sashimi
and dragon rolls, followed by Chilean seabass, fruits de mer and City
favourite Wagyu beef.
They then nibbled on dessert plates and chocolate fondant puds before
heading off for a full afternoons slog. Curse that pesky financial crisis.
14 News CITYA.M. 21 JUNE 2010

Anadarko wages bitter war


over Macondo well claims
with to co-own the leasehold in the responsibility for the catastrophe
BP IN CRISIS Macondo well, and said it strongly based on BPs reckless decisions and
BY EMMA SADOWSKI disagrees with allegations that it actions.
acted recklessly. Chairman and chief executive Jim
A BITTER legal feud between BP and A statement from BP chief execu- Hackett said: We recognize that ulti-
its Deepwater Horizon partner tive Tony Hayward said: Other par- mately we have obligations under
Anadarko Petroleum is developing ties besides BP may be responsible for Federal law related to the oil spill, but
after the latter declared it would not costs and liabilities arising from the will look to BP to continue to pay all
pay out claims linked to the Gulf of oil spill, and we expect those parties legitimate claims as they have repeat-
Mexico oil spill. to live up to their obligations. edly stated that they will do. The
BP said yesterday that it had not Anadarko, which had a 25 per cent Texas based production company last
made a decision on whether it will stake in the damaged well, said late week had its credit ratingslashed by
sue Anadarko, which it partnered last week that it would not accept Moodys to Ba1 from Baa3.

Oil is burned off the surface of the Gulf near the spill Picture: REUTERS

BP to launch
Exclusive football content on Yahoo!
large scale From a man who knows a bit about football.

fund raising
Last week BP had its rating slashed
BP IN CRISIS by Moodys, Fitch and Standard &
BY EMMA SADOWSKI Poors (S&P).
Moodys downgraded BP to A2 from
BP IS structuring a plan to raise more Aa2, while Fitch knocked BP down six
than double the amount it has notches to BBB and S&P down two
already dedicated to paying out in notches to A.
compensation claims arising from the Meanwhile, BP announced over the
Gulf of Mexico disaster. weekend that it has already paid out
It is understood that the board is $104m in compensation claims linked
currently discussing a number of to the Gulf disaster.
options that could see the embattled Darryl Willis, of the BP claims team
oil major raise roughly $50bn said: Our focus has been on getting
(33.7bn) to cover the costs of the spill. money into the hands of fishermen,
The group is thought to be plan- shrimpers, condo owners and others
ning a $10bn bond sale, which could who have not been able to earn
start as early as next week, while a fur- income due to the spill.
ther $20bn could come from the sale We have also been addressing the
of assets over the next two years. larger, more complex claims and have
BP is also understood to have been successful in sending more
entered into discussions with several cheques to commercial entities.
banks in a bid to raise the remaining Last week BP agreed to set up a
$20bn in loans. $20bn escrow account to pay for com-
A spokesperson from the embattled pensation claims coming from the
oil major declined to comment on Gulf.
specifics, but said that it is in ongoing The fund will be independently
discussions with its advisers, includ- managed by Kenneth Feinberg, who
ing Goldman Sachs, Morgan Stanley, famously managed the claims arising
UBS and Blackstone. from the 9/11 attacks.
ANALYSIS l Credit rating downgrades for BP

Moodys Fitch Standard


& Poors

3
notches
6
notches
2
notches
Make Yahoo! your home for football.
yahoo.co.uk

A2 BBB A
CITYA.M. 21 JUNE 2010 News 15

White House
hits out over
yachting race
nity came out in his defence yester-
BP IN CRISIS day, criticising the way the US govern-
BY EMMA SADOWSKI ment has responded to the event.
David Buik of BCG partners said:
BP chief executive Tony Hayward's yacht Bob during the JP Morgan Asset Management Round the Island Race Picture: REUTERS THE WHITE House has hit out at BP Having been castigated and pilloried
chief executive Tony Hayward, who by the US President and Congress as
was spotted on his yacht just off the the most loathed man in the US, one
Isle of Wight over the weekend. can hardly blame Tony Hayward for
US President Barack Obamas chief taking a couple of days off to spend
of staff, Rham Emanuel said that time sailing with his son.
Haywards trip was part of a long The embattled chief executive, who
line of PR gaffes and mistakes. received a stark grilling by a US con-
He said: To quote Tony Hayward, gressional panel last Thursday, will
hes got his life back. I think we can hand over operations in the Gulf to
all conclude that Tony Hayward is not Bob Dudley, the former chairman of
going to have a second career in PR BPs Russian venture, TNK-BP.
consulting. It is uncertain when the handover
Hayward was sailing on his 52-foot will officially take place, but the oil
yacht Bob over the weekend after major said the process is currently
attending the annual JP Morgan Asset being phased. Dudley was appointed
Management Round the Island Race with the task of handling and manag-
with his son. ing the clean up of the Gulf coast
A spokesperson from BP pointed more than a week ago.
out that this was the first day off News comes as congressman Ed
Hayward had taken since the 20 April Markey, who chairs the House energy
explosion of the Deepwater Horizon and environment committee, said
rig and that it was private time with 100,000 barrels of oil a day could have
his son. been leaking from the well if the
Members of the business commu- blow out preventer was removed.

Former BHP Billiton chief executive BP executive Iain Conn has been
Chip Goodyear is a favourite tipped multiple times as a successor

Bookies take bets


on CEO successor
ConocoPhillips James Mulva, Shells
BP IN CRISIS Simon Henry and Totals Christophe
BY EMMA SADOWSKI de Margerie as possible heirs to the BP
throne.
BOOKMAKERS are taking bids on who Ladbrokes odds that Hayward will
is likely to replace BP chief executive stand down by the end of the calen-
Tony Hayward, as uncertainty dar year were five-to-one earlier this
mounts over who will take the helm. month, with 16-to-one that former
Iain Conn, Bob Dudley and Doug Tesco boss Sir Terry Leahy would take
Suttles are among some of the BP over.
executives tipped on Irish book But it is understood that former
maker Paddy Powers website, with BHP Billiton chief executive Chip
odds favouring Conn, who is chief Goodyear and Conn are the market
executive for refining and marketing favourites to take the post.
at the embattled oil giant. Speculation has been mounting
Odds are three-to-one that Conn across the UK and US since the spill
will be the next BP boss, while Dudley began over whether Hayward will
is seven-to-two and Suttles six-to-one. exit the oil group once the leak is
Paddy Power also lists capped and the clean-up is underway.
16 News CITYA.M. 21 JUNE 2010

Spice investors tell


Cinven to up its bid
Based on Fridays closing price of well-known institution said: 56p is


UTILITIES
BY OLIVER SHAH 54p, Cinvens approach now repre- the wrong price by a million miles
sents a premium of just 3.7 per so I have no problem with manage-
INVESTORS in Spice, Britains cent. Geoff Allum, an analyst at ment turning it down. Cinven is
largest installer of water meters, Arden Partners, suggested Cinven being incredibly opportunistic.
have signalled private equity house would need to up its offer to 75p
Cinven will have to significantly per share or 423m to get the utili- ANALYSIS l Spice 54.00
improve its 316m approach for the ties services company to the table. 60 p 18 Jun
company if deal talks are to open. He cited the appointment of chief
Spices board last week rejected executive Martin Towers, a number 50
an indicative offer of 56p per share of contract wins and the possible
from Cinven as opportunistic. 10m sell-off of the firms facilities 40
Although the offer represented a business as positive factors.
51.5 per cent premium to Spices Several shareholders said they 30
closing price the day before the backed managements decision to
approach, the shares rallied in the immediately knock back the
intervening period after Spice dis- European buyout outfit. One small-
20
posed of its troubled gas business. er companies fund manager from a 9 Apr 29 Apr 10 May 8 Jun

Toyota action
Australian mining ends amid rash
magnate is missing of China strikes

AUTOMOTIVE
Cameroons government has said

MINING
BY MARION DAKERS six Australians, two British, two WORKERS at a plastics parts supplier
French and one American were on for Toyota in China resumed work yes-
AUSTRALIAN mining magnate Ken the aircraft. terday, ending a three-day strike over
Talbot and all four other board mem- The other Sundance personnel on pay and benefits.
bers at Sundance Resources are miss- the flight were confirmed by the The strike, at Toyota-affiliated parts
ing after their plane disappeared in company as being chairman Geoff maker Toyoda Gosei Co, had forced a
Cameroon on Saturday. Wedlock, chief executive John Carr- stoppage for most of Friday at the
Talbot, one of Australias richest Gregg, and non-executive directors Japanese car makers joint venture
men and non-executive director at John Jones and Craig Oliver. factory in the northern city of
Sundance, was one of nine people fly- A search for the aircraft by Tianjin, near to Beijing.
ing to the Republic of Congo, where Cameroon, Congo Republic and China has been hit by a rash of
Sundance has opened a major iron Gabon authorities is under way, with strikes at factories across the country
ore project. assistance from Australian, Canadian over the past few weeks, mainly over
The firm has halted all operations and US diplomats. pay.
in the area to divert resources to the Talbot, 58, rose to prominence as The wage rises demanded by the
search efforts, and said it will request the founder of Macarthur Coal, factories would add little to the cost
that trading in its shares on the which he sold in 1995 for A$700m of products made in China, meaning
Australian Stock Exchange be sus- (equivalent to 332.4m at the time). the countrys role as a manufacturing
pended today. He is currently at the centre of a cor- base appears secure. But the outbreak
Weather conditions at site are cur- ruption enquiry. of worker unrest presents a tricky
rently favourable and a comprehen- The Foreign and Commonwealth challenge for Chinas ruling
sive multi-national air and ground Office said last night it was urgently Communist Party, which has vowed
search effort commenced at 1000 investigating reports that two British to improve workers incomes but is jit-
local time on Sunday, the firm said. citizens were on board the plane. Toyoda workers returned to work yesterday after a three-day strike Picture: REUTERS tery about any protests.
CITYA.M. 21 JUNE 2010 News 17

AIR ASIA CONSIDERS LONDON IPO


Lockheed signs up NEWS | IN BRIEF
Toy Story 3 sets Disney record

BAE as jet partner


Movie giant Walt Disney smashed a box
office record with the opening weekend
for Toy Story 3, the third in its animated
series about toys that come alive. The
cartoon sold $153.8m (103.7m) worth
of tickets at the weekend, with $109m
taken in the US and Canada a new
John Monaghan, director of aero- opening record for a film produced by


DEFENCE
BY EMMA SADOWSKI space in Australia, said: Leveraging Disneys Pixar Animation unit. The film
our capability at Williamtown will received an extra boost from premium
BAE SYSTEMS has signed an agree- reduce the transition risk and cost of pricing for 3D screenings, which
ment with Lockheed Martin to sus- introducing the F-35 aircraft into accounted for about 60 per cent of
tain and support a series of combat service in Australia from 2018. sales, Disney said.
fighter planes in Australia. It will also assist in retaining this
Both companies signed a memo- important defence industry capabili- Gold hits an all-time record high
randum of understanding yesterday ty for the Hunter region and Gold rallied to an all-time record above
in Australias Newcastle, which will Australia more generally. $1,260 an ounce on Friday, as investors
see BAE help support the govern- Monaghan and Lockheed vice looked to precious metals for an alterna-
ments F-35 Lightning II Joint Strike president of global industrial inte- tive to equity or debt investments given
Fighter plan. gration aeronautics Bob Bolz signed renewed uncertainty about the econom-
The Australian government has the agreement. ic recovery. Surprisingly weak US eco-
already approved the procurement Lockheed won the contract to nomic data hiked the tangible asset and
AIRASIA is weighing its options of a $1bn (674m) London Stock Exchange listing next of 14 out of 100 F-35 jets and BAE build the F-35 Lightning jets as long spot gold hit an all-time high of
year when the company floats its long haul business, AirAsia X. The groups chief execu- said that it is well placed to provide ago as 2001. $1,261.90 an ounce. US gold futures for
tive, Tony Fernandes (pictured), said the airline would initially list in Malaysia, but that support to the programme through The initial order was worth August delivery also climbed to a record
it was considering a secondary listing in either London or New York. AirAsia has become its Williamtown aerospace head- $200bn (134.8bn) for a consign- at $1,263.70, and settled up $9.60 at
the largest budget carrier in the region. Picture: Alex Ridley/ CITY A.M quarters. ment of 3,000 planes. $1,258.30, its highest ever close.

City sharpens knife


for Prus chairman
& Spencer, and Jim Schiro, the for- ance sector. Thiam, who held posi-

INSURANCE
BY OLIVER SHAH mer chief executive of Zurich tions at McKinsey and Aviva before
Financial Services, were named in becoming finance director and
SEVERAL institutional shareholders the weekend press as possible can- then head of Prudential, is seen as a
are agitating for the resignation of didates for McGraths role. Naguib talented manager by many despite
Prudential chairman Harvey Kheraj, the former chief executive his gaffes during the AIA process.
McGrath as pressure grows on the of JPMorgan Cazenove, and Michael While more hawkish fund man-
board over the aborted attempt to McLintock, the head of fund man- agers would prefer McGraths head
buy AIA in Asia for $35.5bn (25bn). ager M&G, have been mooted as in the near term, many also want
Fidelity, Legal & General, potential successors to Prudential Thiam to depart soon after.
Schroders and F&C are understood boss Tidjane Thiam.
to be among those demanding a Sources close to Prudential said ANALYSIS l Prudential
change at the top of the FTSE 100 the firm would continue to meet 600 p
566.00
insurer, which was forced to pay with City investors, many of whom 18 Jun
450m in advisory and break fees are dismayed at the fall-out from 580
on the failed bid for AIGs Far the AIA move. Although the board
Eastern operations. Fidelity is due recognises some shareholders want 560
to meet McGrath and senior inde- a change of management, it
540
pendent director James Ross today, believes the majority are in favour
while Schroders will meet them of McGrath and Thiam staying on.
520
later in the week. One problem for frustrated
Lord Myners, the former City investors is the dearth of talent in 500
minister and ex-chairman of Marks the highest echelon of the insur- 22 Mar 13 Apr 4 May 24 May 14 Jun
2.2M
7.6M

1.9M

1.7M 1.9M
871k
692k
1.5M
1.8M 1.4M
484k
744k 757k
300k 1.7M
442k
474k
585k 433k
620k
1.3M 417k 494k 1.2M
381k
614k
2.3M 335k 302k
609k 1.1M
380k
627k 493k 2.2M
338k
361k 379k
1.1M 450k
299k 730k
2.3M
543k 404k 330k
364k k
415k
805k 343k
989k 317k 402k
437k
319k
313k 556k 1.3M
309k 734k
497k
756k 1.2M
504k 570k
414k
941k

327k

k 535k
339k
978k
1.2M
504k
327k

10.1M
331k
833k
386k
425k

333k
1.5M
52k 433k
537k

670k
385k
585k
1M

519k
815k

665k 1M

1.3M

WHETHER
YOUR BUSINESS
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WERE EXACTLY
THE RIGHT SIZE.

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CITYA.M. 21 JUNE 2010 News 19

Budget focus should not be on banker bashing


realities facing our nation. unprovided. internationally policymakers must range of financial crises that have
The chancellor has already taken A successful financial services sector make sure each organisation involved threatened to undermine its reputa-
steps to trim the structural deficit but helps to support and drive the wider is clear about its responsibilities. tion. And each time the City has
there is more to do if we are to main- economy forward. So when people So I trust the new Independent emerged bruised, but intact.
tain our reputation for fiscal stability talk about rebalancing the economy, Commission, led by Sir John Vickers, Therefore I would like to repeat the
among international investors and the debate should centre on how will not simply focus on the possible chancellors hopeful statement at
avoid a sovereign debt crisis. financial services can help businesses separation of retail from wholesale Mansion House last week echoing
In such challenging circumstances, across the UK grow rather than cut- banking. It was not the integrated the famous words of Sir Winston
MONDAY COMMENT we must all pull together in the same ting the City down to size. banks which failed. It is important Churchill that we have now reached
direction. That is why it is important There can be no return to business therefore any proposals are rigorously the end of the beginning.
NICK ANSTEE to remember as I told the chancellor as usual. Therefore it seems pragmatic assessed and help put capitalism back So let us put an end to banker bash-
and Mervyn King last week at Mansion that the Bank of England the lender of into the heart of capitalism. ing, pointless recriminations, and

T
omorrow George Osborne will House that finance is the lifeblood of last resort should have a greater Past failings have understandably harmful uncertainty. It is time now to
deliver one of the most impor- Britains manufacturing and wider authority in macro-prudential and altered the way the City is perceived by move forward together and help shape
tant Budget announcements in services industries. Without funding, microprudential regulation. the public and politicians, and indeed this new financial era.
recent memory as he outlines products are not produced, there is no But as the regulatory landscape how we perceive ourselves. But the Nick Anstee is Lord Mayor of the City of
plans to deal with the harsh financial budget for innovation and services go changes both domestically and industry has historically overcome a London

Verizon may TPG BAGS REPUBLIC FOR 300M NEWS | IN BRIEF


Resolution eyes 800m in Axa
Clive Cowderys insurance consolidation
vehicle, Resolution, is hoping to free up

pay Vodafone around 800m from the inherited


estate of Axas UK business if its 2.8bn
takeover goes ahead. Axa had previously
sought permission from the Financial
Services Authority to expatriate excess
funds from the groups with-profits life

dividend soon assurance portfolios over the next two


years, and Resolution is understood to
want to do the same. A source said the
move would benefit both policyholders
and shareholders.

Troubled retailer bounces back


Vodafone has been under pressure USC, the chain of youth fashion outlets

TELECOMS
BY MARION DAKERS from shareholders and Verizon Group, owned by Scottish private equity mag-
which owns the remaining 55 per cent nate Sir Tom Hunter, has returned to
VODAFONE may receive a dividend of the company, to sell its stake in the profit after going through a pre-pack
from its stake in American mobile car- joint venture. administration in 2008. Accounts filed
rier Verizon by 2012, according to Verizon Group has long maintained at Companies House show the clothing
Verizons chief financial officer. it would like to take full ownership of house delivered pre-tax profits of 1.3m
John Killian said there was a rea- the firm, and has previously hinted at for the year to January 2010 on rev-
sonable chance of issuing a dividend a merger with Vodafone once enues of 69m, compared with a loss of
in two years, assuming no change in Verizons debts are resolved. 9m last year. Sir Tom vowed to take a
the structure of the business. more hands-on approach with USC
Its a Verizon-controlled decision as ANALYSIS l Vodafone when the company folded under mount-
to when we pay the cash out and how 155 p 143.05 ing rent bills and falling revenues.
much we pay, he added. 18 Jun
A payout could increase Vodafones Brit waits for higher Apollo bid
sizeable dividend stream. The firm has 145
Shareholders in Brit Insurance, the
not received a payment from its 45 per Lloyds of London company, are waiting
cent stake in Verizon since 2005. to see if US private equity player Apollo
Americas biggest mobile phone TPG Capital, the US private equity giant behind the controversial quick flip of will raise its 770m buyout bid this
135
company has instead been pouring Debenhams in 2006, has moved down the market capitalisation scale to buy youth fash- week. Brit Insurances largest investors
money into paying down its $55bn ion retailer Republic for 300m. TPG aims to double the number of Republic outlets in have dismissed Apollos offer of 10 per
debt pile, most of which relates to its the UK and Ireland from 103 to more than 200. The transaction marks a 4.7 times return share as speculative, suggesting they
125
takeover of Alltel. 13 Apr 4 May 24 May 14 Jun on initial investment for Change Capital Partners, which will exit the company. want at least 11 per share.

Jupiter prepares for first day of trading Heron may buy Tower 42
117.7p amid fears over internal and Investors will be hoping market jit- International, Ronsons private prop-

FUND MANAGEMENT PROPERTY


Financial Services Authority investi- ters around the indebtedness of erty company, refused to comment
CITY investors will be closely watch- gations into trades made by star man- periphery eurozone countries such as GERALD Ronson, the property tycoon on the reported bid, telling City A.M.
ing Jupiter Fund Managements ager Guillaume Rambourg. Spain and Greece do not turn currently building the Heron Tower, that Heron are always actively look-
debut on the London Stock Exchange Although Jupiter also relies on a Jupiters first few weeks as a publicly was named as a surprise bidder for ing at properties in the market.
today, after its shares rose from 165p handful of well-known managers listed company into a rocky ride. Tower 42 in reports over the weekend. Tower 42 is on the market for
to 190p in unofficial dealing. Tony Nutt, John Chatfeild-Roberts, Last week, chief executive Edward The tower, the tallest completed around 300m, as its owners try to
Rival asset manager Gartmore has Philip Gibbs and Guy de Blonay run Bonham Carter said he was pleased building in the City at 600ft, was put cash in on a resurgence in property
disappointed since its initial public 38 per cent of its assets it claims its with the outcome of the IPO even up for sale by owners BlackRock and prices. It is seen as a bellwether of
offering (IPO) in December. Its share revenues are diversified and it does though the shares were priced Hermes in April. high-end City rents, having com-
price has almost halved from 217p to not rely on blockbuster products. towards the bottom end of the range. A spokesperson for Heron manded 70 per square foot in 2007.
20 News CITYA.M. 21 JUNE 2010

NEWS | IN BRIEF
EMI names new chief executive
SANDWICH TALKS GO STALE
Telstra agrees to
6.5bn Australian
EMI, the troubled record label, has
changed its top management for the
second time this year, weeks after pri-
vate equity owner Terra Firma persuad-
ed its investors to pump another 105m

internet upgrade
into the business. Chief executive
Charles Allen and Lord Birt, chairman of
EMIs holding company Maltby Capital,
have stepped down to become advisers
to Terra Firma. Roger Faxon, an old EMI
hand who has run its music publishing
division since 2007, takes the helm.
TELECOMS ment reflects a commitment by all


Business rent disputes fall 23pc BY MARION DAKERS parties to reaching a mutually benefi-
Last year saw 23 per cent fewer argu- cial outcome for Telstra investors, cus-
ments between businesses and landlords INTERNET group Telstra has agreed an tomers, employees and the industry,
over commercial rents, as recession-hit A$11bn (6.5bn) deal with the she said.
property owners held off raising prices Australian government to roll out a The proposed transaction will cost
to keep a grasp on tenants. City law firm national broadband network, after an estimated A$43bn (25.5bn) and
Trowers & Hamlin worked out 6,600 nearly a year of negotiations. take around eight years to complete.
rent disputes were referred to the Royal The company, which was part- Telstra stands to earn A$9bn from
Institution of Chartered Surveyors last owned by the State until 2006, will building the network, plus A$2bn in
year, compared with 8,535 in 2008. replace its copper and cable internet relief from current universal service
network with a fibre-optic service and obligations.
Facebook looks to boost profile lease it back to the Australian govern- The current deal allows Telstra to
Facebook chief executive Mark ment. keep its lucrative majority stake in TV
Zuckerberg is set to make a rare on- An agreement with the owners of firm Foxtel, which the government
stage appearance this week as the social Australias only internet network was had threatened to forcibly dismantle.
networking site looks to improve its vital for Kevin Rudds government, in The government is still pursuing
advertising revenues. Zuckerburg is set order to fulfil an election pledge to legislation to break up the company
to receive the media person of the provide faster broadband across the into its wholesale and retail opera-
year award at the Cannes Lions DEAL discussions between the husband-and-wife owners of Eat, Niall and Faith country. tions.
Internation Advertising Festival after MacArthur, and Waitrose have ended after the two sides were unable to agree a price for Telstra chairman Catherine The deal must still be approved by
being interviewed by its audience of the sale of the fast food business. Eat, which is valued at between 100m and 150m, will Livingstone said the deal was an the Australian competition body and
agency and marketing chiefs. now concentrate on expanding beyond its 100 outlets. Picture: PA encouraging milestone. This agree- Telstra shareholders.

Ocado to report a
healthy sales drive
RETAIL profits from 2m for the first half cent to 427.3m and a like-for-like

BY HARRY BANKS of its financial year. gross sales increase of 22 per cent
%.'%
#!2%0%!+3#(!,, Ocado, which delivers groceries for the year ending 29 November
3500/24%$"9#)49!-
THE online grocer, Ocado, aims to exclusively for up-market chain 2009.
make its stock market debut by the Waitrose, part of the John Lewis Ocado was founded in January

 3%04%-"%2 middle of next month and is
expected to make a formal
Partnership, sent a letter to cus-
tomers two week ago saying it will
2000 by investment bankers Tim
Steiner, Jason Gissing and Jonathan
announcement next week. offer those who have spent over Faiman.
The company has achieved soar- 300 since 1 January 2010 the If successful, the float would
ing sales but has yet to make a pre- chance to purchase shares. value their combined stakes in the
tax profit. It is believed that existing region of 160m.
Ocado hopes to achieve a valua- investors will aim to sell around Although the firm is undoubted-
tion of 1bn and has appointed 200m to 250m in shares. ly strong in its niche area of the
JPMorgan Cazenove, UBS and A valuation of about 1bn, market and is growing revenues
Goldman Sachs to advise it on the including around 100m pounds fast, its planned flotation comes at
listing. of debt, would equate to around a difficult time for the domestic
To boost its entry onto the stock twice its annual sales but many economy. Fears of a cuts-inspired
exchange, the company is expected times even its pre-interest pre-tax downturn might prompt con-
to announce an increase in sales of profits. sumers to switch their preferences
4HEIRCHA more than 30 per cent and a dou- In March Ocado announced an to cheaper grocery outlets like
9OURCHALLENG LLENGEx bling of underlying pre-interest increase in gross sales of 25 per Tesco and WM Morrison.
Ex

%SCAPETHE#ITYANDACHIEVESOMETHINGAMAZING Great product, but questions remain


*OINlRMSFROMAROUNDTHE#ITYTOCLIMBTHEHIGHEST THE former Goldman bankers goods are often much nearer Ocado in the M25 using its own
2%')34%2%$#(!2)49./

MOUNTAINSIN3COTLAND %NGLANDAND7ALESnALLINA behind Ocado certainly have their sell-by date when they reach online channel Waitrose Deliver.
chutzpah. Trying to reach a 1bn the buyer. Quite how Ocado will deal with
TARGETTIMEOFHOURS valuation in a flotation is a tall Financial performance is also this competitor-customer is cur-
order for pretty much any firm in improving, with underlying prof- rently unclear.
&UNDSRAISEDWILLSUPPORT#!2%)NTERNATIONALSOVERSEAS these times; to do so without hav- its having doubled from more Fears that the firm will go the
EMERGENCYWORKANDLONG TERMDEVELOPMENTPROJECTS ing turned a single penny of prof- than 2m to between 4m and same way as Travelport, Merlin
it is nothing short of brazen. 5m in the first half of the year. Entertainment and New Look
THATHELPTHOSEFORWHOMEVERYDAYISANUPHILLSTRUGGLE Ocados product is top-drawer Although it will still book a pre- which all had to pull their IPOs
in many respects, theres no tax loss, it operates in one of a few due to shaky market sentiment
4HISEVENTWILLDEVELOPANDTESTYOURPHYSICAL doubt about that. Its Amazon- fast-growing industries: in an oth- are hardly unfounded. But man-
ABILITY TEAMWORKANDDETERMINATION style approach to food retailing, erwise sober set of first quarter agement points out these compa-
which sees customers receive pro- results last week, J Sainsbury said nies had been highly-geared by
#HALLENGE9OURSELF#HALLENGE0OVERTY duce from a 26 acre warehouse in its online grocery business was their private equity backers while
Hatfield, means goods are much growing by 20 per cent a year. Ocado has just 15m of debt.
fresher than they would be under Having agreed a ten-year supply Theyd better hope the market
WWWCARECHALLENGEORGUKPEAKS different online shopping models. deal with Waitrose, the firm has shares their confidence.
4 Other supermarkets wait for also given potential investors
produce to be delivered to their extra visibility. That said, the
%CHALLENGE CAREINTERNATIONALORG branches before making up the
customers order, meaning the
agreement contains a clause that
lets Waitrose compete against
BOTTOMLINE
Analysis by David Crow
Sponsored by

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DIARY EDITOR OF
22 News CITYA.M. 21 JUNE 2010

Investors need to get used to lower returns


in Versailles with a French version of digestion Martin was in the revival frontline. He tells me its read by ers are holed below the water line.
the of the Sistine Chapel on top. camp, which made my Fois Gras sit over 1.5m people. I can only say they Investors have to be wary theyre
Mind you, during the revolution rather more comfortably. must be suckers for punishment. not investing in new funds that are
they didnt think too much of it the Unhappily, however, he said that John is universally bearish and con- purely designed to earn fees to bail
room was used to store paper. even with the best global economic vinced were heading for a double dip out existing investments that have
Anyway, there I was after lunch with conditions he could forsee, a bal- recession in both the US and Europe. gone bad. Perhaps, like all of us, pri-
the Governeur, gazing through this anced equity portfolio that excluded His reasoning, on top of all the spend- vate equity funds can only make
beautiful room, when I was struck by banks was unlikely to yield much ing cuts, huge and rising taxation money by going back to fundamen-
CNBC COMMENT the thought; Wed all better get used more than six per cent in annualised will push us over the edge. tals and creating wealth by support-
ROSS WESTGATE to much lower returns from our
investments.
gains. With banks wed be toast.
From there it got worse. Martin
The answer is to invest in traders
or in other words hedge funds. The
ing entrepreneurial activity.
Coming back on a packed Eurostar
Now admittedly it wasnt the artis- Jetzer from Bellecapital told us problem with that, he reckons, is that I realised, if I hadnt known before,

U
ntil last week Id never been in tic beauty in front of me that inspired clients are now much more interest- only 20 per cent of them are going to that we really are in the world of the
The Galerie Doree, but if you this conclusion I was rather helped ed in the return of investments than make any money and even the good single digit return and likely to stay
ever get the chance its well by the speakers on my investment return on investment and was fearful ones might only return high single here for quite some time. As a result
worth a peek. panel at the GIC conference. of the huge demographic challenges digits. Ive been to my local bookie and gone
Situated inside what is now the the Martin Barnes from BCA laid out that face us in the West. As for private equity funds buyer for the win double with Murray and
Banque de France but was once the three basic macro views Doomsday, John Mauldin writes an investment beware. Andrew Boyle from London England. I cant lose.
Hotel de Toulouse it equals anything Limbo and Revival. Happily for the letter called thoughts from the and Capital says many of the big play- Ross Westgate, Anchor, CNBC

Daily Express BEST OF THE BROKERS


ANALYSIS l Bayer AG
54 48.44
18 Jun
ANALYSIS l William Hill
220 p
ANALYSIS l Aviva
420 p 354.00
18 Jun

boss Desmond
210
184.10 400
52 18 Jun
200 380
50
360
48 190
340
46 180
320

eyes Five TV 44 170


300
42 160 280
22 Mar 13 Apr 4 May 24 May 14 Jun 22 Mar 13 Apr 4 May 24 May 14 Jun 22 Mar 13 Apr 4 May 24 May 14 Jun

BAYER WILLIAM HILL AVIVA


Citigroup said it believes that Bayer is an Since the end of March, William Hill stock JP Morgan Cazenove said it welcomes the
attractive buy. Citi said that sentiment is has been down 15 per cent, which UBS shift in financial focus at Aviva from long-

BANKING going to be set by the Xarelto data and it believes is unjustified. Based on its 2011 term aspirational goals to short-term deliv-
channels Television X and Red Hot.
BY OLIVER SHAH Five, formerly known as Channel 5, remains positive on this asset. According to estimates the stock now offers a cash flow erables. JP Morgan said this indicates a
DAILY Express and Daily Star owner is owned by RTL. The European broad- Citi trading appears to have improved in yield of over nine per cent. Post rights issue reduced M&A appetite which it views posi-
Richard Desmond has joined the bid- caster last year attempted to merge Crop Science, Materials remains robust and there are no significant balance sheet con- tively as Aviva has been the most acquisi-
ding for ailing TV station Five, it with Channel 4 but is now keen to
emerged yesterday. bow out completely. the company will benefit from recent cur- cerns and UBS moves from neutral to tive European insurer since 2005 and
Desmond, who has trumpeted his The channel, whose hit shows rency moves. buy rating. upgrades to overweight.
1bn acquisitions war chest in recent include Neighbours and CSI, made an
weeks, is said to have registered his operating loss of 9.1m last year, but
interest in the asset ahead of todays after writeoffs and restructuring To appear in Best of the Brokers email your research to notes@cityam.com
first-round deadline. costs were accounted for the total loss

More directors facing disqualification


The newspaper tycoon, who owns was 37m.
the Daily Express and OK! magazine, Desmond, who has a personal for-
joins a long line up keen to take own- tune of around 950m according to
ership. The Sunday Times Rich List, said in a
Others thought to be interested Radio 4 interview recently that the
include Endemol, famed for the pro- newspaper industry had to consoli-
grammes Big Brother and Total date and said he hoped to be in the faced disqualification proceedings, Innovation and Skills (BIS) which

REGULATION
Wipeout, Fives terrestrial competitor vanguard of that consolidation. He compared to 174 the year before. This launch the proceedings is said by
ITV, plus American broadcasters. even hinted he would be in the mar- THE number of directors of insolvent is despite a decrease of 17.8 per cent Wedlake Bell to be underresourced,
Endemol is thought to favour a deal ket to buy The Sun if it ever came up companies facing disqualification in the number of company liquida- however. Starling believes not all
because its long-running contract to for sale. proceedings for involvement in crimi- tions over the same period. directors believed to have engaged in
show Big Brother on Channel 4 In an interview in the Independent nal activity has increased by 52 per Edward Starling, partner and head criminal activity are being investigat-
expires at the end of this series. he boasts having so much money its cent in a year, new figures show. of the rescue and restructuring team ed.
Desmonds interest has traditional- ridiculous and said while he drew a City law firm Wedlake Bell, which at the law firm, commented: This is Starling said insolvency practition-
ly been in print, but analysts have salary of 1m a week for a few years, obtained the figures, has warned this a considerable jump in proceedings ers suggest that for every one of
suggested he would be wise to invest he now takes just 50,000 annually - is just the tip of the iceberg. being brought against unfit directors these cases there are probably 10
in other media. He already owns as he would rather see his business In the year up to 31 March 2010, of insolvent companies. other instances of suspect activity
Portland, which produces adult TV grow than lose 70 per cent of his cash. 265 directors of insolvent companies The Department for Business, that are not pursued.

CITY MOVES | WHOS SWITCHING JOBS Edited by Victoria Bates

ects such as the 2.7bn Birmingham Standard Life Investments Tyler joins from Mercer, where he
Aviva Highways PFI project and the 3.4bn The asset manager has appointed direc- was UK chief operating officer and pre-
The insurance giant has appointed Dipak Skynet 5 PFI project procured by the tor David Paine as head of property viously led the firms health and bene-
Warren as a corporate risk solutions director. MoD. investments, following managing direc- fits practice. More recently, he ran his
Warren joins from Mitsui Sumitomo tor Alex Watts decision to take early own consulting business alongside his
Insurance in London, which she joined in 2000. Kleinwort Benson retirement in November. interests in the healthcare and benefits
In her last role as active underwriter and direc- The private banking group has appoint- Paine is currently responsible for the sector.
tor of the firm, she was responsible for the syn- ed Richard Stanwell as head of its groups Heritage With Profits Fund
dicate business plan and performance across Newbury office, responsible for leading property portfolio and the UK Shopping Detica
property, casualty, motor, PI, marine, construc- the wealth management practice in a Centre and UK Retail Park Trusts. He The business and technology consultan-
tion, commercial mid-market and aviation. region stretching from the Thames has over 25 years of experience in cy, part of the BAE Systems group, has
She will take up her new role in September. Valley into the West Country. property fund management and devel- hired Chris Coker as its new finance
Stanwell joins from Barclays Wealth, opment. director.
senior legal counsel in the group legal where he has been a senior private Coker joined Detica in 2007, working
Wedlake Bell department. Prior to that, she spent banker for the past four years. Buck Consultants his way up through central and opera-
The City law firm has hired Shapna Roy, almost 12 years at Lovells, latterly as of Catherine Whyle has also been The human resource and benefits con- tional finance role to become UK
a major infrastructure project special- counsel in the infrastructure and proj- appointed to support the Newbury sultancy has appointed Mike Tyler to finance director. He previously worked
ist, as a partner in its corporate team. ect finance department. wealth management team, joining from lead its health and productivity practice at accountancy firm
Roy joins from Amey, where she was She has previously advised on proj- Coutts & Co. in the UK, effective from July. PricewaterhouseCoopers.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
BOB WIGLEY IS READY.ARE YOU?
Bob Wigley, Chair of Yell Group

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Entry is online and there are 15 company awards recognising
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The deadline for entries is 22 July 2010
For full details and helpful contact points please visit
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For information on becoming a sponsor of the City A.M. Awards
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And save this date for your diary: Thursday 28 October 2010
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24 News | Interview WORDS BY ROGER BAIRD CITYA.M. 21 JUNE 2010

The bike and car parts retailer who


wants to own Britain on the move
After strong results, On buying
Halfords boss David other firms:
Wild is bedding in a You never
new acquisition and know when
is looking for more the right one
will come
along. We
H
alfords and its chief executive David
Wild are having a good recession.
Earlier this month, the bikes and have a rolling
car maintenance retail chain post-
ed a strong set of full-year figures: pre-tax list of
profits rose 42 per cent to 110m, while
sales rose three per cent to 832m. targets.
The FTSE 250 business said the trend for
healthy living and squeezing another year
out of the family car because of the down-
turn had helped boost the business.
Its bike business, for instance, enjoyed a
15 per cent like-for-like sales growth,
which is impressive when you consider
that one in three bikes (1m a year) sold in
the UK are purchased at one of Halfords
470 stores. Bikes and car maintenance
equipment, such as sat navs, are the cor-
nerstone of the retailers offering, both
accounting for 30 per cent of its sales.
The group bought Nationwide
Autocentres, a 224-store chain of car repair
forecourts for 73.2m from buyout firm
Phoenix in February; it is clear that Wild,
who joined the group as chief executive in
2008, relishes the chance to expand the
business after almost two years of cost cut-
ting following the financial crisis. ANALYSIS l Halfords
During the previous 18 months or so 560 p 539.50
18 Jun
Wild cut 250 staff. bringing the business
down to 10,000 employees; closed its six
loss-making stores in the Czech Republic 520
and one in Poland; and found cheaper fac-
tories in Cambodia to source some of its
bikes. 480
But the car servicing purchase is a
chance for Wild to grow the business
rather than simply make it leaner. 440
Halfords is about life on the move, 9 Apr 29 Apr 10 May 8 Jun
says a relaxed and engaging Wild, speak-
ing in a meeting room at the Deloitte
Academy in the City. The Autocentres looking to fill in stores here. Halfords chief bike. We want to make our web site a first where he worked for nine years.
acquisition is an opportunity to extend He also wants to de-bloke the stores to executive David Wild port of call for the products we sell. But Wild says he has no misgivings on
our brand. make them more welcoming to families. in meeting rooms at Wild came to Halfords after getting missing out on the Morrisons job that
Wild will keep the same management He has recently introduced more camping the Deloitte Academy down to the final three on the shortlist to would have allowed him to lead one of the
team, but plans to rebrand all of the cen- equipment to the shops, which he says are in the City lead the Bradford-based supermarket countrys largest retailers.
tres in the Halfords livery, and call them selling well and bring new customers. William Morrison in 2006. He says: I have no regrets. The Halfords
Halfords Autocentres. Wild also says that with debts of around Picture: Micha The top job went to Heinekens chief job came along and I wanted to come back
So far we have rebranded four to see 155m and annual cashflow at 95m Theiner/City A.M. operating officer Marc Bolland, who this to England with my family. And I wanted
how they perform, says Wild. We want further acquisitions are not out of the year joined Marks & Spencer as its new to run something that I was in charge of.
to see if we can improve service levels to question for Halfords. It is more a matter chief executive. This job allows me to do that.
make the centres more family orientated. of when, not if. At the time Wild was working for Wal- Wild took up his Halfords post in
We will roll out the rest of the centres He says: You never quite know when Mart in California, in charge of a new con- August 2008, a month before Lehman
from September. the right one will come along. We have a cept of smaller grocery stores designed to Brothers went bust, and for much of the
Wild says that last year the Autocentres rolling list of targets and we monitor counter the imminent arrival of Tescos time since then he has been caught up in
made a pre-tax profit of 7.5m on sales of them all the time. Sometimes the man- Fresh & Easy stores. a cost cutting battle. Fortunately for every-
97m, but over the next three he plans to agement is not ready to sell. Or they dont Before that Wild had spent almost body, the economy has now turned, allow-
open another 80 forecourts and double want to sell to us. Or we take a look at twenty years at Tesco in a variety of jobs, ing firms to start expanding again. You get
the units operating profit. their books and they dont look as good as including running its supply chain and the feeling that Wild is getting ready to
He says that the potential is clearly we thought from the outside. But we are being head of its central European divi- see how far and how fast he can grow a
there. Wild explains: Halfords has 11m always looking. sion. He began his career at RHM Foods venerable British retailer.
customers, 10.5m of whom drive a car, and He adds: We also want quality busi-
they spend on average 20 a visit. nesses, we are not looking to buy business-
Nationwide Autocentres has 500,000 cus- es that we need to turn around. And we CV | DAVID WILD
tomers and they spend 150 a visit. If we are not looking to buy abroad yet, because
convert only 10 per cent of Halfords cus- that complicates the process.
tomers, you can see the opportunity. Wild is also looking to boost his firms Age: 55 Manchester; read Chemistry at University College,
He also points out that the car mainte- online sales. Currently 6.1 per cent of its Oxford
nance market is worth 9bn, with about sales come from the web, but Wild Work: 1976: joined RHM Foods in its flour and milling
33m cars needing regular servicing and explains that many other retailers online unit; 1985, joined Tesco, rising from buyer in its bakery Family: Married with four children
repairs. sales are now around 20 per cent, while department to group supply chain director in 2003;
But wild has not taken his eye off the Argos web sales lead the pack at around 2004: joined Wal-Mart as president of Wal-Mart Lives: Chipping Norton
main brand. He says there is room for 25 per cent. Germany, then in charge of new store development in
another 50 Halfords in the UK. He opened He says: The web plays an important San Francisco; 2008: joined Halfords as CEO. Hobbies: Watching Manchester United: I manage to
10 in 2009 and plans to open another 10 role in sales because it allows customers to get to most home games. Collects late twentieth
this year. compare brands and get a lot of informa-
In London we are relatively weak com- tion about the product, before they come
Education:William Hulmes Grammar School in century art.
pared to other areas, he says. We are in and get the feel of something like a
CITYA.M. 21 JUNE 2010 News 25

Public sector
Time Warner accountants to
set to make a hit job market

move on Shed
RECRUITMENT


PUBLIC SECTOR spending cuts by the
government could force over 16,500
accountants and finance staff into
unemployment, according to new
research.
Recruitment firm Ambition said
with the governments planned

MEDIA 6.2bn public spending cuts, account-


BY DAVID HELLIER Shed has been talking going pri- ing and finance departments are
vate since December last year. Eileen Gallagher is Shed Medias third largest individual shareholder Picture: REX expecting they will have to shed the
TIME WARNER, the media giant Industry sources suggested a bid price jobs, which currently make up 2.3 per
behind Sex and the City, is close to of above 85m. TIME LINE | cent of the public sector workforce.
acquiring Shed Media, the producer Shed was established in 1998 by UK managing director at Ambition,
of iconic shows such as Footballers Eileen Gallagher and floated on AIM Tim Gilbert, said: The government
Wives and Supernanny. in March 2005. 1998 programmes, including Who Do You has had to make cuts to start control-
Shed has already announced that Gallagher has a shareholding of Founded by Eileen Gallagher, formerly a Think You Are? and The Day Britain ling the deficit but theres a real dan-
takeover discussions with a manage- 7.49 per cent. She is the third largest press officer with Scottish Television. It Stopped. Alex Graham founded Wall to ger that many of the professionals
ment buy-out group, backed by individual shareholder behind Alex specialises in producing long-running dra- Wall. forced out of the public sector will
Bowmark Capital and Darwin Private Graham, who owns 11.89 per cent mas including Waterloo Road, Bad Girls 2008 have nowhere to go to.
Equity, have fallen through but at the and Nicholas Powell, CEO of Ricochet, and Footballers Wives. After ten years as MD and then CEO Ambition argued that the current
time it said it had received a proposal who owns 11.66 per cent. March 2005 Gallagher stands down to return to a cre- job boom in the banking industry
from a third party. Floated on AIM ative role as CEO of Shed Productions. wont offset the cuts as the City does
Yesterday Shed refused to com- ANALYSIS l Time Warner November 2005 2009 not want professionals from a public
ment, but would not deny that 34 $ Acquired Ricochet, a production compa- Shed announced that it had rejected a sector background.
Warner is the third party. 32.96 ny specialising in factual entertainment. takeover offer by the companys manage- But there shouldnt be an expecta-
An industry source said that 33 18 Jun tion from the public that the nascent
It created and produces the global brand ment. The offer of 1 a share was reject-
Warner is the right size to make a bid 32 recovery in private businesses will
and added it would be sensible to
Supernanny. ed in December 2008 and talks ended in accommodate the public sector fall-
assume that an announcement will 31 September 2006 January 2009. out, said Gilbert.
follow shortly. Acquired Outright Distribution. 2009 Average salaries amongst public
30
Shed is expected to make the for- November 2007 Created a Los Angeles-based US umbrel- sector accountants is 40,100, which
mal announcement this week, 29 Acquired multiple BAFTA winner Wall to la company, Shed Media US, to make US Ambition said will equate to a 173m
depending on how its share price Wall which produces factual and drama buyers more familiar with the brand. loss in tax revenue a year if the cuts
reacts to the reports of a bid. 22 Mar 13 Apr 4 May 24 May 14 Jun become too deep.
Investment
26 CITYA.M. 21 JUNE 2010

| Spread Betting

Wake up your ANALYSIS l Coffee prices surge in June


150.00 US cents per lb
ICO
Composite
Indicator
139.08
145.80
147.25

trading with a
140.00

130.12 130.10
129.88
128.49

caffeine boost
128.00
01 Jun 03 Jun 07 Jun 09 Jun 11 Jun 15 Jun 17 Jun

With more of us quafng coffee, poor harvests


will keep coffee prices high, says Jessica Mead

U
NFORTUNATELY for those of you As with all commodities, the balance
craving your third Monday morn- of supply and demand plays an impor-
ing coffee, feeding that caffeine tant role in shifting the price of coffee.
addiction is getting even more Following poor crop harvests in Vietnam
expensive. Over the past week or so, we the worlds largest supplier of low-
have seen the price of coffee beans surge grade coffee and Central America,
by more than 20 per cent, taking them there have been serious concerns about
back towards the heady levels last seen at the supply of coffee in the market.
the height of the 2008 commodity price The latest harvest from Colombia,
boom. which is historically the worlds largest
After such a sustained rally, it was producer of arabica beans, is coming in
unsurprising that coffee traders booked below expectations for the second year in
profits on Friday, pushing the price of a row.
New York-traded Arabica coffee for CMC Markets Hewson says that the
September delivery back down to $1.565 market is also worried about the forth-
a pound from the highs of $1.62, last seen coming harvest in Brazil, the worlds consumption rise further to around offer contracts on both arabica and
in March 2008. London-traded robusta largest producer of coffee. Even if it does 134m bags. robusta coffee the spread is wide,
coffee, the lower quality version used in meet previous years output, it is by no With demand rising and supply con- though, at around 35 basis points.
instant coffee blends, fell by as much as means guaranteed that Brazil alone will strained, market forces dictate that the But with plenty of upside and volatili-
2.3 percent on Friday to $1,515 per tonne. offset shortages seen elsewhere. price of coffee should continue to rise. ty, you should give your portfolio a caf-
However, these dips are likely to be The International Coffee Organisation All of the major spread betting providers feine hit.
viewed by traders as a fresh buying (ICO) also said that world exports of cof-
opportunity and spread betters should
look to capitalise on another move high-
fee between October and April fell by 8.1
per cent on the same period a year earli-
IN FOCUS | SUGAR
er. For while the sudden spike to $1.62 er. The number of bags exported there-
per pound was attributed to traders cov- fore fell to 53.3m from 58m in 2009. The rise and fall of sugar over the past Brazil, is one of the largest producers. consumption growth in 2009-2010 is
ering their short positions in the com- Last month, it also revised down its
modity, both the technical and forecasts for world output in the 2009-10 year has been the one of the biggest After a shock fall in Indian sugar pro- expected to come in below the long-
fundamental arguments for higher cof- growing season. It now expects 120.6m stories in the commodity markets. The duction, subsequent revisions upwards term average. But what about the
fee prices is looking as strong as a double bags of coffee to be produced, a 1.1 per price peaked in January of this year, caused the markets to worry about future? Soc Gen analysts agree that any
espresso. cent drop on the previous year.
From a technical perspective, the cur- Production is expected to pick up in the reaching $0.30 per pound. But it only over-supply. Estimates at the start of surplus this year will be limited. On top
rent uptrend has good support around 2010-11 season to between 133m and stayed briefly at this lofty high, before a this year forecast a disappointing crop of that, the fall in the price will lead to
the $1.35 level and longer-term at $1.10, 135m bags, according to Nestor Osorio, downhill slide to the $0.15 mark. So of 13-14m tonnes, however, these fore- fewer farmers growing sugar cane this
says CMC Markets strategist Michael executive director at the ICO.
Hewson. He adds that a break above the But while production is predicted to
why did it happen? Its all down to casts were revised up to 18.5m tonnes. year, giving prices a chance to recover.
current price would open up levels last fall in 2009-10, world consumption in India, which is crucial to the sugar mar- Globally, production is expected to fall They expect prices to stay above $0.14
seen in the mid-1990s. Then, coffee trad- 2009 is expected to pick up to 132m bags ket since it is not only the worlds only slightly below demand this year. per pound for the rest of this year.
ed well in excess of 250 cents per pound compared to 130m bags in 2008. largest sugar consumer, but along with Adding a further dampener to prices, Kathleen Brooks
and as high as 318 cents in May 1997. Extrapolating this to 2010, we should see

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CITYA.M. 21 JUNE 2010 EXPLORING THE 27
BALEARICS
SEE TRAVEL ON
PAGES 29-30

Your cup of coffee


could be about to get THE TIPSTER itate to withdraw stimulus when necessary,
more expensive investors will also be keeping a close eye on

Picture: SXC WITH MURODCHS NEWS CORP LIKELY TO interest rates in the coming weeks. As a hike
in rates becomes increasingly necessary to
UP THE BID, BSKYB LOOKS ATTRACTIVE meet inflation, we could see the curve on
short sterling steepen a short sterling buy
now could pay off. Cantor Index offers a
spread on short sterling of 98.67-98.68.
Property investment holding company

N
EWS of the BSkyB takeover bid has sion scheme with its property portfolio, its Daejan Holdings updates the markets today
helped to push the firms share price finances are also on a better footing. Aprils and this should give another clue as to the
up this week to 699p. Analysts predict glowing results showed revenue up 7.5 per state of the global recovery. A month ago
that following the rejection of its low- cent and the outlook was optimistic, the shares hit nine-month lows at 2,093p
ball attempt, Rupert Murdochs News Corp although rumours of an equity issue dam- but rallied back strongly last week, breaking
may be prepared to make a bid of up to 8 aged the stock price. Nonetheless, expect a resistance at 2,450p on Friday.
per share to acquire the remaining 61 per continuation of the recent rally. Capital But it might be a case of buying the
cent of the British company. Cantor Index Spreads quotes 1,480.2p-1,483.8p for rumour. Sell on the fact if the update is dis-
offers 698.43p701.10p. Whitbread. appointing, as 2,500p should prove to be a
The recent correction in equity markets Tuesdays long-awaited budget has domi- strong resistance level. Spread Co offer a
has meant that Whitbreads share price has nated the press since the election. But fol- spread on Daejan Holdings of 2,479.1p-
dipped back below 15, providing a possible lowing Mervyn Kings announcement that 2,488.9p.
buying opportunity. After shoring up its pen- the Monetary Policy Committee will not hes- Juliet Samuel

Portugal take on
North Korea at
lunchtime

Picture: ACTION
IMAGES

THE WORLD CUP TIPSTER


IBERIAN TEAMS UNDER
THE FLOODLIGHTS TODAY

S
O FAR, the 2010 World Cup has been Austria and Poland by five goals in the run- Sporting Index. However, dont rule out first half from both teams, we should still
full of shocks and surprises. From up to the tournament. Consequently, buying North Korea scoring at least one goal get some balls in the back of the net. Look to
Englands draw with the USA and a Spain supremacy market (the margin of against this sometimes weak Portuguese buy the time of the first goal extrabet is
Algeria to Germany and Spains defeats victory) could well be a good bet. Sporting defence. Extrabet is offering a market on the quoting 42 minutes.
at the hands of Serbia and Switzerland, it has Index is offering Spain supremacy at 2.1 time of the first North Korean goal and sell- Many of the matches so far this tourna-
been difficult for traders to predict the out- whereas extrabet traders are more opti- ing 71 minutes could be worth it if you think ment have been tight but we have seen
come of some of these matches. mistic about Spains chances, offering 2.5. striker Jong Tae Se has a chance of slipping some early goals notably Steven Gerrards
But favourites Spain will be looking to The match between Portugal and North one past an inexperienced Eduardo. England opener. Selling the time of the
redress the balance with their match this Korea is also shaping up to be an interesting Looking ahead to tomorrows matches, fastest goal would have been profitable in all
evening against Honduras. They have a one. After their disappointing draw against the face-off between Uruguay and Mexico of the last three World Cups and with play-
strong side and should be able to break Ivory Coast and with a final group game should be a tight game both teams know ers shaking off first match nerves, we could
down a Honduras team that only managed against Brazil, Portugal badly need three that a draw will be enough to qualify for the see some very early goals. Look to sell this
to draw 0-0 with Azerbaijan a few weeks points to see them progress. Total goals for knock-out stages. market; extrabet offers a sell at 107 seconds.
ago. In contrast, Spain had beaten both the match can be bought at 2.5 with While we are expecting a tight and tetchy Jessica Mead

re-occurring patterns using specialised soft-


SPREAD BET ware.
GURU Basic software packages can also provide
a trader with ample information on the
SANDY behaviour of current price movement.
But what one should be looking at on a
JADEJA chart is where the markets have recently
found support or resistance and also if the
TECHNICAL market is trending towards the upside or to
ANALYST the downside. This information should be
able to provide a trader with some basic
guidelines as to how the markets are cur-
rently behaving.
Many newcomers to the financial markets
are faced with the question of whether or
not they should use technical analysis to
help them make informed trading decisions.

Q.
Dear Sandy, what is technical Markets such as the FTSE 100, gold and oil
analysis and can it help me in the have provided decent moves over the last

Q.
current market environment? few weeks. But the question on where to A technical fork in the Dear Sandy, is the FTSE 100 index ing for a bullish move. If the index can stay
enter and exit a market can be a difficult road for the FTSE 100 bullish or bearish at the moment above 5,260, then there is a possibility that it

A.
Firstly, technical analysis is not one, even for the most experienced traders. from a technical perspective? may be able to reach the 5,366-5,435 level,
about predicting what the market However, using technical analysis can Picture: GETTY which is where the FTSE 100 has weakened

A.
is going to do next. Instead, it is provide you with a visual reference point on Since its 16 April high of 5,833, the from before. With this in mind, we could say
more about looking at past price move- the market. If you obtain key price levels FTSE 100 has fallen sharply. It lost that these areas can be considered to be a
ments and patterns to help one make a fore- from charts, then you will not have to pore 16 per cent to reach a low of 4,898 price resistance point. If the index can reach
cast on what may happen to the market over fundamental data for hours on end or on 25 May. Since then, the index has traded these levels then that could create a decision
going forward. resort to just plain guessing where the mar- towards the upside and recovered some point for traders. But if we see the FTSE fall
Although technical analysis has been ket will head next. ground. It has climbed back above the psy- below its recent short-term support of 5,150,
around for many years, the advent of com- This can help you make decisions quick- chological level of 5,000. Currently, the index then it is possible that the bears may try to
puter technology has made it easier for ly an important factor when the markets has broken above a recent resistance level of take the index all the way back down
todays technician to analyse charts and find are so fast-moving. 5,260 and appears to be heading higher, call- towards 4,983.
28 Markets & Investments CITYA.M. 21 JUNE 2010

LONDONS 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 . . . . . . . . . . . . . . . . . . . . . . . .299.00* +2.10 314.80 216.75 Compass . . . . . . . . . . . . . . . . . .567.50 +2.50 572.00 307.75 Johnson Matthey . . . . . . . . . . .1628.00* +18.00 1814.00 1077.00 Schroders . . . . . . . . . . . . . . . . .1302.00 11.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 113.10* +1.10 114.40 87.50 Cookson . . . . . . . . . . . . . . . . . . .461.70 +1.90 616.00 220.00 JPMorgan Emerg Mkts . . . . . . . .515.00 +8.50 549.00 350.50 Schroders N/V. . . . . . . . . . . . . .1060.00 5.00 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .999.00* 11.00 1045.00 719.00 Croda Intl . . . . . . . . . . . . . . . . .1027.00 1.00 1047.00 498.50 Kazakhmys . . . . . . . . . . . . . . . . 1194.00 +14.00 1634.00 567.50 Scot. & Sthrn Energy. . . . . . . . . 1128.00 4.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .135.70* 0.30 155.60 111.00 CSR . . . . . . . . . . . . . . . . . . . . . .425.90 +5.70 524.00 320.75 Kesa Electricals . . . . . . . . . . . . . 117.20 +3.90 162.00 98.45 Scottish Mortgage. . . . . . . . . . . .592.00* +8.00 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1418.00 +18.00 1425.00 844.00 Daily Mail A . . . . . . . . . . . . . . . .484.80* +3.00 539.00 264.25 .LQJVKHU . . . . . . . . . . . . . . . . . .229.80* +6.00 255.00 171.40 SEGRO . . . . . . . . . . . . . . . . . . . .272.00 0.70 403.10 250.00
Aegis . . . . . . . . . . . . . . . . . . . . . 115.60* +1.30 137.30 79.75 Dana Petroleum . . . . . . . . . . . . 1155.00 +48.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .139.60 +3.30 174.29 114.60
Afren . . . . . . . . . . . . . . . . . . . . . .91.45 +0.40 111.00 38.50 Davis Service . . . . . . . . . . . . . . .384.10 2.50 442.30 307.00 Lancashire Hldgs . . . . . . . . . . . .502.00 +2.00 540.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .621.50 6.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1447.00 8.00 1489.00 476.25 De La Rue . . . . . . . . . . . . . . . . . .970.00 6.00 1021.00 808.50 Land Securities . . . . . . . . . . . . . .609.00 6.00 743.50 415.25 Severn Trent . . . . . . . . . . . . . . .1242.00* +5.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .324.90 +0.40 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .60.75 +0.45 91.95 53.75 Legal & General . . . . . . . . . . . . . .84.45 +0.80 94.40 49.37 Shaftesbury . . . . . . . . . . . . . . . .362.50* 2.20 426.50 285.00
AMEC . . . . . . . . . . . . . . . . . . . . .851.00* +6.00 891.00 603.50 Derwent London . . . . . . . . . . . .1321.00* +5.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .56.32 0.87 75.58 40.42 Shire. . . . . . . . . . . . . . . . . . . . .1445.00 7.00 1526.00 810.00
Amlin . . . . . . . . . . . . . . . . . . . . .388.00 +1.30 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .142.00 +3.30 148.00 107.75 Logica . . . . . . . . . . . . . . . . . . . . 119.60 +0.50 149.10 74.50 SIG . . . . . . . . . . . . . . . . . . . . . . . 114.00 +2.60 146.60 82.25
Anglo American . . . . . . . . . . . .2645.00 27.50 3015.50 1554.00 Diageo . . . . . . . . . . . . . . . . . . . 1112.00 3.00 1176.00 839.50 London Stock Exchange . . . . . . .635.00 4.50 949.50 588.00 Smith & Nephew . . . . . . . . . . . . .664.50 3.00 700.50 435.25
Antofagasta . . . . . . . . . . . . . . . .877.50 +9.50 1100.00 546.50 Dimension Data . . . . . . . . . . . . .100.90 +1.80 105.00 53.75 Lonmin . . . . . . . . . . . . . . . . . . .1668.00 +40.00 2198.00 950.00 Smiths . . . . . . . . . . . . . . . . . . . 1140.00 +8.00 1177.00 649.00
Aquarius Platinum . . . . . . . . . . .386.90 +14.90 490.00 172.75 Dominos Pizza . . . . . . . . . . . . . .379.00 +5.00 385.30 192.75 Man . . . . . . . . . . . . . . . . . . . . . .248.40 +4.10 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .423.70 +2.90 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .290.20 +0.50 362.40 106.00 Drax . . . . . . . . . . . . . . . . . . . . . .388.60 1.40 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .351.60* +6.60 412.70 281.50 Spectris . . . . . . . . . . . . . . . . . . .807.50* 9.00 928.00 495.00
Arriva . . . . . . . . . . . . . . . . . . . . .766.00 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.32 +0.76 39.75 19.25 Marstons . . . . . . . . . . . . . . . . . .101.70* +2.75 111.70 77.50 Spirax-Sarco Eng . . . . . . . . . . .1396.00 6.00 1591.00 749.50
Ashmore . . . . . . . . . . . . . . . . . . .253.10 +9.00 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .341.60 +7.10 438.40 202.00 Meggitt . . . . . . . . . . . . . . . . . . . .324.60 +7.60 328.70 151.75 Spirent Comms . . . . . . . . . . . . . . 113.30 +0.30 127.80 54.50
Astrazeneca . . . . . . . . . . . . . . .3068.00 14.00 3136.00 2631.50 Easyjet . . . . . . . . . . . . . . . . . . . .426.90 6.10 499.90 260.00 Melrose . . . . . . . . . . . . . . . . . . .231.10 +9.70 251.50 87.75
Atkins(Ws) . . . . . . . . . . . . . . . . .700.00 +4.50 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .401.50* +1.50 412.40 297.50 Mercantile IT . . . . . . . . . . . . . . . .927.50 +7.50 1002.00 716.50 Sports Direct Intl . . . . . . . . . . . . .108.00 +0.50 134.00 72.50
Autonomy Corp . . . . . . . . . . . .1954.00 +9.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .226.00 +7.00 245.00 134.25 Michael Page Intl. . . . . . . . . . . . .400.30 +6.20 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .852.50 +1.50 893.50 490.00
Aveva . . . . . . . . . . . . . . . . . . . .1205.00 +14.00 1237.00 661.00 EnQuest . . . . . . . . . . . . . . . . . . .107.40 +3.00 112.70 87.35 Micro Focus . . . . . . . . . . . . . . . .534.00 4.50 550.00 300.90 St Jamess Place . . . . . . . . . . . . .227.70 7.10 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .353.40 +5.20 474.00 274.75 Eurasian Nat Res . . . . . . . . . . .1047.00 +5.00 1276.00 582.00 Millen & Copthorne . . . . . . . . . . .443.10 +2.10 496.30 217.25 Stagecoach. . . . . . . . . . . . . . . . .190.50 0.30 204.90 114.75
Babcock International . . . . . . . . .566.00* 10.00 660.50 448.50 Euromoney Inst Inv . . . . . . . . . . .615.50* 5.00 630.00 191.25 Misys . . . . . . . . . . . . . . . . . . . . .258.70 0.40 281.70 162.75 Standard Chartered . . . . . . . . . .1763.50 +24.00 1847.00 1115.00
BAE Systems . . . . . . . . . . . . . . .326.30 +1.60 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .635.50 5.50 664.50 434.00 Mitchells & Butlers . . . . . . . . . . .310.80 1.00 343.90 221.75 Standard Life . . . . . . . . . . . . . . .188.50 +1.70 237.00 172.60
Balfour Beatty . . . . . . . . . . . . . . .252.20* +1.20 328.85 238.50 F&C Comm Prop . . . . . . . . . . . . . .93.00* 0.25 96.80 73.50 MITIE . . . . . . . . . . . . . . . . . . . . .223.70 3.80 281.70 204.25 TalkTalk . . . . . . . . . . . . . . . . . . .126.30 +0.20 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .312.35 0.30 394.25 255.00 Ferrexpo . . . . . . . . . . . . . . . . . . .274.60 0.90 396.20 112.00 Mondi . . . . . . . . . . . . . . . . . . . . .419.70 +2.70 488.00 182.00 Talvivaara Mining . . . . . . . . . . . .391.50 +18.40 501.50 315.00
Barratt Development . . . . . . . . . .107.10 +4.70 193.31 91.80 FirstGroup . . . . . . . . . . . . . . . . .399.10 +3.30 448.80 322.75 Monks Inv Tst . . . . . . . . . . . . . . .299.80 +5.50 321.20 222.00 Tate & Lyle . . . . . . . . . . . . . . . . .494.00 2.80 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .195.80 +5.70 220.00 105.00 Foreign & Col Inv Tst. . . . . . . . . .276.80 +1.80 297.20 210.25 Morrison Wm . . . . . . . . . . . . . . .262.50 0.50 306.30 234.25 Taylor Wimpey . . . . . . . . . . . . . . .30.97 +1.12 54.90 27.40
Beazley. . . . . . . . . . . . . . . . . . . .122.60 0.20 124.80 86.25 Fresnillo . . . . . . . . . . . . . . . . . .1060.00 +35.00 1084.00 438.00 Murray Intl Tst . . . . . . . . . . . . . . .839.00 +9.00 893.50 575.00 Telecity . . . . . . . . . . . . . . . . . . . .410.00 +8.00 455.00 272.00
Bellway. . . . . . . . . . . . . . . . . . . .639.00* +11.00 927.50 591.50 G4S . . . . . . . . . . . . . . . . . . . . . .280.60 2.20 285.70 197.90 National Express. . . . . . . . . . . . .236.80 0.20 256.80 135.08 Templeton Emrg Mkts . . . . . . . . .556.00 +10.00 598.00 346.50
Berkeley . . . . . . . . . . . . . . . . . . .782.50 +7.50 989.50 735.00 Genesis Emerging Mkts Fd . . . . .472.00 +5.90 484.00 370.00 National Grid . . . . . . . . . . . . . . .516.50* +2.50 607.65 469.37
BG . . . . . . . . . . . . . . . . . . . . . . 1116.00 +0.50 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .129.20 0.10 155.00 67.49 Next . . . . . . . . . . . . . . . . . . . . .2150.00* +20.00 2360.00 1402.00 Tesco . . . . . . . . . . . . . . . . . . . . .390.75* 6.65 454.90 347.40
BHP Billiton . . . . . . . . . . . . . . .1940.00 +19.50 2346.00 1274.50 GlaxoSmithKline . . . . . . . . . . . . 1196.00* 19.00 1347.00 1058.00 Northumbrian Water . . . . . . . . . .304.30 +1.10 311.50 219.90 Thomas Cook . . . . . . . . . . . . . . .200.80 2.70 277.20 189.70
BlackRock Mining . . . . . . . . . . . .580.00 0.50 654.50 346.00 Great Portland Estates . . . . . . . .293.90 0.60 332.10 203.75 Old Mutual . . . . . . . . . . . . . . . . . 113.70* 0.30 127.20 71.00 Tomkins . . . . . . . . . . . . . . . . . . .257.00 +0.60 260.40 135.00
BlueBay . . . . . . . . . . . . . . . . . . .298.80 +13.80 393.00 188.00 Greene King . . . . . . . . . . . . . . . .416.00 +10.60 504.00 359.50 Partygaming . . . . . . . . . . . . . . . .261.00 2.30 339.70 213.30 Travis Perkins . . . . . . . . . . . . . . .788.00 +30.50 915.00 461.00
Booker . . . . . . . . . . . . . . . . . . . . .41.75* 49.50 32.75 Halfords . . . . . . . . . . . . . . . . . . .533.00 14.50 555.50 299.00 Pearson . . . . . . . . . . . . . . . . . . .959.00 +2.50 1069.00 574.00 TUI Travel . . . . . . . . . . . . . . . . . .224.90 0.90 313.90 213.80
BP . . . . . . . . . . . . . . . . . . . . . . .357.45 2.25 658.20 333.50 Halma . . . . . . . . . . . . . . . . . . . . .265.60 +2.50 278.50 169.25 Pennon . . . . . . . . . . . . . . . . . . . .553.50 2.50 567.00 434.40 Tullett Prebon . . . . . . . . . . . . . . .353.30 +6.90 436.20 261.20
Brit Insurance . . . . . . . . . . . . . . .925.00* +5.00 941.00 709.00 Hammerson . . . . . . . . . . . . . . . .360.00 +0.40 460.30 277.00 Persimmon . . . . . . . . . . . . . . . . .375.80 +10.60 534.50 340.25 Tullow Oil . . . . . . . . . . . . . . . . . 1150.00 7.00 1375.00 834.50
British Airways . . . . . . . . . . . . . .214.20 +1.10 255.80 117.30 Hargreaves Lansdown . . . . . . . .350.00 +8.00 387.00 197.25 Petrofac . . . . . . . . . . . . . . . . . .1242.00 12.00 1294.00 580.00 UK Commercial Prop. . . . . . . . . . .80.20 84.90 59.50
British Amer. Tob . . . . . . . . . . .2177.00 21.00 2335.50 1655.00 Hays . . . . . . . . . . . . . . . . . . . . . .100.60 +0.85 119.00 80.00 Petropavlovsk . . . . . . . . . . . . . .1319.00 +36.00 1370.00 515.00 Ultra Electronics . . . . . . . . . . . .1588.00 8.00 1678.00 1064.00
British Empire Tst . . . . . . . . . . . .432.00 +0.40 467.90 338.50 Henderson . . . . . . . . . . . . . . . . .130.70 0.70 157.80 83.75 Premier Farnell . . . . . . . . . . . . . .242.00* +1.60 252.60 121.25 Unilever . . . . . . . . . . . . . . . . . .1898.00 10.00 2024.00 1419.00
British Land . . . . . . . . . . . . . . . .457.10 +4.80 532.00 353.00 Heritage Oil. . . . . . . . . . . . . . . . .445.00 12.40 587.00 409.80 Premier Oil . . . . . . . . . . . . . . . .1218.00 +4.00 1431.00 984.00 United Utilities . . . . . . . . . . . . . .539.00* +3.50 575.00 429.00
Britvic. . . . . . . . . . . . . . . . . . . . .477.00* 3.00 497.70 253.25 Hikma Pharma . . . . . . . . . . . . . .674.50 0.50 730.00 430.00 Provident Financial . . . . . . . . . . .919.00* +8.00 986.00 763.00 Utd Business Media . . . . . . . . . .530.50 +7.50 579.50 364.75
Brown(N.) . . . . . . . . . . . . . . . . . .264.90 +1.90 284.30 204.25 Hiscox . . . . . . . . . . . . . . . . . . . .352.90 0.30 369.30 279.50 Prudential . . . . . . . . . . . . . . . . . .566.00 +1.00 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .698.00 1.00 732.00 423.75 Hochschild Mining . . . . . . . . . . .324.10 1.70 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .328.00 +3.40 332.30 178.50 Vedanta Resources . . . . . . . . . .2331.00 +6.00 2967.00 1262.00
BT . . . . . . . . . . . . . . . . . . . . . . .136.80 2.80 151.00 99.50 Home Retail . . . . . . . . . . . . . . . .236.00* +3.60 336.50 224.80 Qinetiq . . . . . . . . . . . . . . . . . . . .120.10 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . . 1140.00* 35.00 1193.00 498.50
Bunzl . . . . . . . . . . . . . . . . . . . . .745.00* +4.50 784.50 478.50 Homeserve . . . . . . . . . . . . . . . .2028.00 3.00 2190.00 1336.00 Randgold Resources. . . . . . . . .6430.00 +180.00 6435.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .143.00* +1.75 153.80 111.90
Burberry . . . . . . . . . . . . . . . . . . .797.00 +5.00 811.00 364.00 HSBC Hldgs . . . . . . . . . . . . . . . .648.60* 0.30 766.80 487.00 Reckitt Benckiser . . . . . . . . . . .3299.00 25.00 3667.00 2686.00 VT . . . . . . . . . . . . . . . . . . . . . . .754.00 6.00 777.50 416.00
Cable & Wire Comms . . . . . . . . . .59.20* +0.85 150.00 53.00 Hunting . . . . . . . . . . . . . . . . . . .463.10 +5.70 659.50 377.00 Reed Elsevier . . . . . . . . . . . . . . .501.00 +2.10 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1164.00 +36.00 1173.00 437.50
Cable & Wire Wwide . . . . . . . . . . .91.15* +0.60 94.80 68.60 ICAP . . . . . . . . . . . . . . . . . . . . . .430.60 +5.50 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .80.65 1.20 125.50 58.75 Wetherspoon(J.D.) . . . . . . . . . . .424.00 +3.30 556.00 348.00
Cairn Energy. . . . . . . . . . . . . . . .435.60 +11.10 441.50 306.80 IG . . . . . . . . . . . . . . . . . . . . . . . .438.40 5.30 458.20 260.00 Rentokil Initial . . . . . . . . . . . . . . . 119.80 +1.80 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .436.50 +0.60 551.00 405.25
Caledonia Invs . . . . . . . . . . . . .1620.00 14.00 1759.00 1459.00 Imagination Tech Gp . . . . . . . . . .301.00 +14.50 301.00 95.00 Resolution . . . . . . . . . . . . . . . . . .60.30 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1477.00* 2.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .786.00 13.50 829.50 643.50 IMI . . . . . . . . . . . . . . . . . . . . . . .736.50 +16.50 742.50 275.25 Rexam . . . . . . . . . . . . . . . . . . . .325.50 +2.70 330.50 222.50 William Hill . . . . . . . . . . . . . . . . .184.20 +6.60 217.80 160.50
Capital & Counties . . . . . . . . . . .106.00 1.00 125.40 99.60 Imperial Tobacco. . . . . . . . . . . .1928.00 26.00 2159.00 1547.00 Rightmove . . . . . . . . . . . . . . . . .687.00 5.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .442.00 1.00 487.00 329.50
Capital Shopping Centres . . . . . .337.00 +1.70 580.00 300.20 Inchcape. . . . . . . . . . . . . . . . . . .277.30 +2.40 347.00 253.20 Rio Tinto . . . . . . . . . . . . . . . . . .3325.00 +5.00 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1575.00 +1.00 1742.00 986.00
Carillion . . . . . . . . . . . . . . . . . . .330.00* 0.10 361.90 236.75 Informa . . . . . . . . . . . . . . . . . . . .396.30 1.00 439.40 216.00 RIT Capital Partners . . . . . . . . . 1191.00 +39.00 1191.00 865.50
Carnival . . . . . . . . . . . . . . . . . .2580.00 13.00 2937.00 1435.00 Inmarsat . . . . . . . . . . . . . . . . . . .755.00 5.00 831.00 491.00 Rolls Royce . . . . . . . . . . . . . . . .599.50* 0.50 631.50 335.00 Wood Group (John). . . . . . . . . . .321.30 3.30 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .361.60 +4.60 380.50 284.75 Intercontl Hotels . . . . . . . . . . . .1215.00 +9.00 1244.00 584.50 Rotork . . . . . . . . . . . . . . . . . . .1365.00 24.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .702.00 +4.50 744.00 380.50
Centrica . . . . . . . . . . . . . . . . . . .301.90 +3.10 320.00 212.50 Intermediate Capital . . . . . . . . . .262.30 1.50 332.00 170.25 Royal Bank Of Scot . . . . . . . . . . . .47.00 +0.30 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1027.00 +16.50 1344.50 555.10
Charter Intl . . . . . . . . . . . . . . . . .703.00 3.00 855.50 403.50 Intertek . . . . . . . . . . . . . . . . . . .1447.00* +3.00 1576.00 987.50 Royal Dutch Shell A . . . . . . . . .1834.00 2.50 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .30.72 +0.72 86.00 20.25
Chemring . . . . . . . . . . . . . . . . .3362.00 33.00 3711.00 1941.00 Intl Power . . . . . . . . . . . . . . . . . .321.10* +3.50 354.00 228.00 Royal Dutch Shell B . . . . . . . . .1751.00 7.00 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chloride Group . . . . . . . . . . . . . .349.40 +3.10 349.40 129.00 Invensys . . . . . . . . . . . . . . . . . . .283.20 +0.60 350.30 212.25 RSA Insurance . . . . . . . . . . . . . .123.40 0.70 142.00 113.10
Close Bros . . . . . . . . . . . . . . . . .722.50 5.00 806.50 623.00 Investec . . . . . . . . . . . . . . . . . . .496.30 +3.60 565.00 309.75 SABMiller . . . . . . . . . . . . . . . . .1999.00 10.00 2090.00 1210.00 * Ex-Dividend Suspended
Cobham . . . . . . . . . . . . . . . . . . .233.60* 1.60 278.60 165.90 ITV . . . . . . . . . . . . . . . . . . . . . . . .58.05 0.15 71.75 31.75 Sage . . . . . . . . . . . . . . . . . . . . . .246.00* 1.90 260.50 167.20
COLT Group . . . . . . . . . . . . . . . .134.00 +1.70 144.20 98.25 Jardine Lloyd Thompson. . . . . . .576.50 +0.50 604.50 393.00 Sainsbury(J) . . . . . . . . . . . . . . . .331.70* +5.30 373.00 307.00 www.interactivedata.com

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Yuan un-pegging to lift markets before Budget


FTSE SET TO OPEN HIGHER tomorrow is a tough call; it has with a jump from 18 per cent to 40 per cent could spark inflationary
MARTIN ON GFT is forecasting the UKs FTSE 100
to open up 35 points from Fridays
been many years since we had a
budget which actually contained
per cent or even 50 per cent on the
cards, it will come down to the detail
concerns if it were to be implement-
ed right now with CPI relatively high

THEMARKETS close, at around 5,285. The German


DAX is expected to open up 24
points at 6,240 and the French CAC
anything which would have a direct
and immediate impact
investors, but George Osbornes
on
of any exemptions to see if any of the
criticism the planned move has been
subjected to has made an impact -
at 3.4 per cent.

Martin Slaney is director of global


40 is quoted around 3,717, up 30 first budget is potentially very dif- and a speculated increase in Vat to 20 dealing operations at GFT.
points on the day. ferent.
Gone are the days when traders ANALYSIS l FTSE
CHINESE NEWS OUTWEIGHS WORRIES would have to bet on the number of
The UK index finished just a few sips of water the Chancellor would 6,000
points shy of achieving an eight-day take during the speech in order to
winning streak on Friday, and generate some interest. 5,800
amidst the backdrop uncertainty 5,250.84
over the nature and extent of the INVESTORS FOCUSED ON CGT 18 Jun
spending cuts and tax hikes we will Investors will be particularly focused 5,600
MARTIN SLANEY discover tomorrow, some might
have thought it would be difficult
on any increase capital gains tax -
5,400
to see any headway being made.

N
ews at the weekend that But the news from China will
5,200
China is to ease the yuans outweigh any of those concerns,
peg to the US dollar will be a and global investors are likely to
boost to stock markets every- share President Obamas view that 5,000
where this morning, in the expecta- this will safeguard the recovery.
tion that the move would prove a Just how the UK markets will
major lift to exporters. react to the budgetary details 31 Mar 22 Apr 13 May 3 Jun
Lifestyle THE MAGNIFIQUE 29
GAUTHIER SOHO
| Travel REVIEWED IN
TOMORROWS PAPER

The elegant side of the Balearics


Roger Baird felt nourished in islands capital Palma, was once a 14th
century fort, which was later converted
mind and body at Mallorcas into a manor house.
The hotel group spent two years reno-
historical new Hilton Hotel vating the 55,000 sq metre site, which
opened in 2006. Among its highlights, the
three-storey hotel boasts a beautiful court-
yard, its own gothic chapel, a windmill,

T
HERE is so much more to Mallorca The Hilton is a two outdoor pools (one for families, one
than sun, sea and the late-night beautifully-restored for adults), several tennis courts and a full-
drunken menace of us Brits in 14 century fort. sized grass football pitch.
Magaluf. The largest of Spains Below: a bedroom. Another nice touch is that all 41 rooms
Balearic Islands, the 3,275 sq km atoll has are unique. This is a boutique hotel that
mountains, lush vegetation and close to has had the resources of a multinational
100 sandy beaches, many of which are thrown at it and it is well worth the trip.
secluded because they are up to half an If you have arranged other accommoda-
hours walk from the nearest road or can tion, the Hiltons new restaurant,
only be approached from the sea. Zaranda, is still worth a visit. The group A rooftop pool at the Hotel Tres.
It is very easy to lose yourself among the has poached young chef Fernando
white sands, clear waters and blue skies of Arellano to run it. He won a Michelin star and her younger brother, also called THREE PLACES TO STAY IN MALLORCA
Mallorca. And it is no surprise to hear that at Zaranda in Madrid, and the hotel group Jaume, who are mid-sized producers with Hilton Sa Torre Mallorca, Llucmayor
the Spanish royal family have a summer wants him to do the same here. Arellano 25 hectares of land and who ship 200,000 The Hilton group threw money at this for-
mansion here, or why artists as diverse as managed to convince 14 of his staff to join bottles of red, white and rose wines a year. mer 14th century fort and the result is
writer Robert Graves or painter Juan him in Mallorca, including his dish- Barbara is an infectious advocate of the breathtaking. Double rooms from 240. Tel: +34
Miro made their homes there. Even washer. This either says a lot about wine trade and explains that three years 871 963 700, www1.hilton.com.
today, the island retains its five- Arellanos cooking or the attrac- ago the vineyard switched to a biodynam-
star pull. When I returned from tion of the island. ic system, an organic method of farming Hotel Tres, Palma
a long weekend there last Fernando serves an adventur- that uses few pesticides, lets weeds grow This Scandinavian-run business is every-
month, just a few seats ahead ous menu that ranges from between the vines, and does not use thing and more that you would expect from
on my British Airways flight broth of roasted turnips with machines during the two-month harvest a boutique city hotel: cool, modern and
was Formula One world bone marrow and tagliatelli because they believe the heavy pickers super-stylish. You are also in the heart of the
champion Jenson Button to sauted lambs sweet- damage the fertility of the earth. Barbara, capitals eating and entertainment quarter.
and two pals, all looking bread, and his selection of 30, says: Its not good to spoil this land Double rooms from 170. Tel: +34 971 717 333,
suitably relaxed. produce and its preparation with pesticides for bigger crops that will www.hoteltres.com.
is first rate throughout. only last for a few years. I want to pass this
A DIFFERENT SORT OF HOTEL land on to the next generation. That is HM Jaime III Hotel, Palma
The standout of my stay was BIODYNAMIC WINE important. A sleek and bright five-star hotel in the cen-
the hotel. Instead of the tall The island also has around 40 And sitting in the afternoon sun at a tre of the capital. Rooms from 135. Tel: +34
unmemorable steel and glass working vineyards. I visited one of table under the vines, eating paella and 971 725 943, www.hmjaimeiii.com.
Hiltons we are used to seeing in the oldest, Jaume Mesquida, which drinking her dark fruity rose, Rosat de
major cities, the Hilton Sa Torre began in 1945. Today it is run by the Rosa, it was hard not to believe she was on
Mallorca, a half hours drive from the fourth generation of Mesquidas, Barbara to something. CONTINUED ON PAGE 30
30 Lifestyle | Travel CITYA.M. 21 JUNE 2010

CONTINUED FROM PAGE 29

A sunset view in Ibiza.

THREE PLACES TO EAT IN MALLORCA clubs on the globe that attract the hottest THREE PLACES TO STAY IN IBIZA
Cappuccino San Miguel, Palma DJs. Ibiza Gran Hotel , Ibiza town
A relaxed bistro in which to have lunch or a However, it seems every islander believes Five-star international luxury. Its good but
light bite in the afternoon. Great local art they are personally responsible for this suc- you could be in any major hotel in the
on the walls inside and a large garden out cess. Everyone is haughty. It is the only place world, which is a bit of a shame.
back. 53 Calle de San Miguel on earth I have ever been checked Double rooms from 500 (high season). Tel: +34 Top: Quilibra Aguas de Ibiza Hotel. Above: an Ibizan view.
over by pensioners to see if I 971 806 806, www.ibizagranhotel.com.
Zaranda, Hilton Sa Torre was wearing the right
NEED TO KNOW:
Mallorca, Llucmayor designer gear (I was not). Quilibra Aguas de Ibiza Hotel, Santa Eulalia
Adventurous eating Unless you are a A funky five-star hotel with plenty of charac- THE OTHER BALEARIC ISLANDS
such as sea snails and clubber you should ter. Double rooms from 370 (high season). Tel:
bone marrow from avoid San Antonio +34 971 319 991, www.aguasdeibiza.com. MENORCA
head chef on the south of the The second largest island in the group of four often does not get the
Fernando Are- island. But even to Mirador de Dalt Vila Hotel, Ibiza old town attention it should because of its bigger brother Mallorca and its glam-
llano, who was the north in Ibiza Small but beautifully formed luxury hotel orous smaller sister Ibiza. But Menorca, at 780 sq km and a population
head chef in the towns hilly old based inside the walls of the old town,
hottest restaurant quarter Dalt Vila which is a World Heritage Double rooms from of 88,500, has as many beaches as Mallorca and plenty of traditional
in Madrid. He which has great 480 (high season). Tel: +34 971 303 045, villages inland.
looks set to put restaurants, archi- www.hotelmiradoribiza.
Mallorca on the tecture that dates FORMENTERA
map too. 8 Cami de Sa back to the 13th THREE PLACES TO EAT IN IBIZA The smallest of the Balearic Islands at only 83 sq km and a population
Torre century and stun- Can Berri Vell, San Agusti
ning views over the bay Good food in a picturesque hill top town. of just 7,500. You can only reach the island by boat from Ibiza and it is
Es Faro de Muleta, Soller you may still be unfor- Try for a table in the garden. Placa Major known for long unspoilt beaches.
Set just outside Soller next tunate enough to turn a
to the towns lighthouse, this corner at night and mistakenly Yemanja, Cala Jondal
restaurant has a beautiful view of the find yourself among hordes of young This and the Blue Marlin next door are two HOW TO GET THERE
natural harbour, and serves a great selec- beery revellers. That said, inland there are a of the coolest beachfront bar/restaurants to
tion of John Dory, sea bream, king prawns number of beautiful hilltop towns like San be seen in on the island. The food is surpris- British Airways flies three times a week to Mallorca and Ibiza from
and scorpion fish. Puerto de Soller Agusti with Greek-style white flat topped ingly good, and then relax in a sofa and London City Airport, which moves up to five times a week in July and
houses and stunning locals churches, watch the waves come in. 07830 San Jos August.
IBIZA which have recently become fashionable For more information contact: www.britishairways.com
There is something about Ibiza that is haunts for the rich to marry in. Ses Roques, Santa Eulalia
tremendously pleased with itself. The third Two years ago the island banned after- Great seafood and stunning views of the For more information about the Balearic Islands go to
largest island in the Balearics has a world- parties held between 6am and noon, in a rocky coves just outside Ibizas third largest www.illesbalears.es
wide reputation as a party island, and in bid to encourage more general tourism. town, Santa Eulalia. For more information about Ibiza go to www.ibiza.travel
Pacha and Privilege has two of the largest This is still work in progress. Platja de Cala Compte

TRAVEL NOTES
ZOE STRIMPEL

Valencia restaurant week: 5-11 July BA s new private jet service Marriotts new boutique Edition
Like tapas but want to explore the best of Spanish food further? British Airways has launched a new private jet service in conjunction with King of boutique hotels Ian Schrager has joined forces with megalith
Combine a week of serious food discovery with a sunny Spanish holi- CitationAir, for customers within North America and the Caribbean. The Marriott to arrive at Edition, where the arty chic of the boutique inn
day in Valencia, one of southern Spains most beautiful cities, which PrivateConnect service will offer pay-by-the-trip access to a network of meets the financial firepower of the corporate chain. Editions first open-
will be hosting its third restaurant week from 5 July. On offer will be private aircraft. An online registration and dedicated phone number ing is at Waikiki Beach, Hawaii, but hotels are planned in more accessible
delicious local and international dishes some from Michelin-starred allows BA flyers to just pay and go with a credit card, avoiding the long- spots such as Istanbul, Barcelona and Bangkok. In addition to excellent
restaurants and available from 20 for lunch and 30 for dinner. term commitment and up-front fees normally associated with private jet food and entertainment for holiday-seekers, expect cutting-edge facilities
Ryanair and EasyJet both fly direct to Valencia from London. hire. For more info, go to www.flyprivateconnect.com. for those on business. Watch this space. www.editionhotels.com
CITYA.M. 21 JUNE 2010 Lifestyle | TV& Games 31

BBC1 BBC2 ITV1 CHANNEL4 FIVE


TERRESTRIAL
6pm BBC News
6.30pm BBC London News
12pm Wimbledon 2010: Live
coverage of the opening days
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 EastEnders; BBC News play 7pm World Cup Live: Spain v 7pm Channel 4 News 7.30pm How Do They Do It?;
8pm Fake Britain 8pm Today at Wimbledon: Honduras (Kick-off 7.30pm). 8pm CHOICE Dispatches: How Five News Update
8.30pm Panorama Action and discussion on the 9.30pm James Cordens World to Save 100billion Live: 8pm Police Interceptors; Five
9pm The Royle Family opening days play Cup Live: With former England Experts propose controversial News at 9
10pm BBC News 9pm CHOICE Mary, Queen of captain Terry Butcher and cuts that could save Britain 9pm CHOICE Extraordinary
10.25pm Regional News Shops: Helping three sisters singer Emma Bunton money People: The Tiniest Girl in the
10.35pm The Graham Norton who run a greengrocers 10pm ITV News at Ten 9pm Chasing the Cumbrian World
Show 10pm Match of the Day: 2010 10.30pm London News Killer 10pm Crimes That Shook the
11.20pm FILM Raising Helen: FIFA World Cup 10.35pm World Cup Highlights: 10pm Big Brother World MARY, QUEEN OF SHOPS
Comedy drama, with Kate 10.30pm Newsnight: Weather Portugal v North Korea, Chile v 11.15pm Music on 4: Being N- 11pm FILM Reservoir Dogs: BBC2, 9PM
Hudson and Helen Mirren 11.20pm Tribal Wives: A Switzerland and Spain v Dubz Thriller, starring Harvey Keitel. Mary Portas comes to the aid of three
2004; Springwatch Liverpool woman meets Honduras 11.45pm Alan Carr: Chatty 1992 sisters in Merseyside who recently
Weatherview members of the Babongo tribe 11.35pm Total Emergency Man 1am SuperCasino 4.05am Wildlife bought a greengrocers that has been
1.15am Sign Zone: The Genius of in southern Gabon 12.30am The Zone; ITV News 12.30am Fifa in Africa: The SOS 4.30am Wildlife SOS 4.55am open for 115 years.
Design 2.15am Sign Zone: Museum 12.20am When Romeo Met Headlines 2010 Legacy County Secrets 5.10am The New
of Life 3.15am Sign Zone: Food Juliet 2.30am The Jeremy Kyle Show 1.30am Big Brother: Live 5.30am- Tomorrow 5.35am-6am Michaelas
Fighters 4am-6am BBC News 1.20am BBC News 4am-6am Close 3.25am-5.30am ITV Nightscreen 6.15am Win My Wage Wild Challenge

SKY SPORTS 1 1.30am Rugby Union 2am- 12am CSI: Crime Scene HISTORY DISCOVERY HOME &
SATELLITE & CABLE

7pm World Cup Report 4.15am Live WWE: Late Night Investigation 2am Exposed: 7pm How the Earth Was
Raw Take That 3am The Fresh HEALTH
7.30pm US Open Golf 10pm Made: Investigating the impact 7pm Baby Tales 8pm Jon and
World Cup Report 10.30pm Prince of Bel-Air 3.50am if Mount Vesuvius erupted
Footballs Greatest 11pm Time BRITISH EUROSPORT Maury 4.40am Nothing to again. 8pm The Plague: Part
Kate Plus 8 9pm Make Room
7pm WTA Tennis 8pm Cycling Declare 5.30am-6am Home for Multiples 10pm I Didnt
of Our Lives 12am Footballs one of two. The 14th-century Know I Was Pregnant 11pm
Greatest 12.30am Twenty20 9pm MotoGP 10.25pm Shopping DISPATCHES: HOW TO SAVE
pandemic. 9pm Battles BC Diagnosis X 12am Make Room
Cup Cricket 2.30am Soccer Eurosport Flash 10.30pm
10pm Marked 11pm How the 100BILLION LIVE CHANNEL4, 8PM
AM: The Best Bits 3.30am Soccer City 11.05pm Eurosport BBC THREE for Multiples 1am I Didnt On the eve of the emergency Budget
Flash 11.10pm Mountain Biking 7pm Total Wipeout 8pm Earth Was Made 12am Battles Know I Was Pregnant 2am
Footballs Greatest 4am announcement, Krishnan Guru-Murthy
12am-12.30am Soccer City Hotter Than My Daughter 9pm BC 1am Life After People 2am Diagnosis X 3am Jon and Kate
Watersports World 5am-6am presents a debate setting out cuts that
Gavin & Stacey 9.30pm Lee Lost Ships 3am Battle 360 Plus 8 4am Bringing Home
Max Power could save Britain money.
ESPN Nelsons Well Good Show 10pm 4am-5am D-Days in the Pacific Baby 5am-6am Midwives
SKY SPORTS 2 4.30pm NHRA Drag Racing EastEnders 11pm Bizarre ER
7pm Live Twenty20 Cup 8pm NBA Classics 10pm 11.30pm Family Guy 12.15am
DISCOVERY SKY1
Superleague Formula 11pm Gavin & Stacey 12.45am Lee 8pm How Do They Do It? 7.30pm Futurama: Robot
Cricket 10.30pm Extra Time 8.30pm How Its Made 9pm
11pm Boots n All 12am South Africa Nightly 11.30pm Nelsons Well Good Show gangsters recruit Bender. 8pm
UFC All Access 12am 1.15am Match of the Day: Oil Disaster: A Race Against Pineapple Dance Studios 9pm
Golfing World 1am US Open
Basketball: FIBA World 2010 FIFA World Cup 3am Time 10pm Mystery Kimberley Walsh: Blue Jean
Golf 3.30am PGA Tour Classic
4.30am Extra Time 5am- Magazine 12.30am Press Pass Total Wipeout 4am Bizarre ER Investigator: Olly Steeds 11pm Girl 10pm NCIS: Los Angeles
5.30am Fishing Gurus 2010 1am NHRA Drag Racing 4.30am-5.30am Peckham Im Alive 12am Deadliest Catch 11pm A League of Their Own
4am-5am Superleague Formula Finishing School for Girls 1am Bear Grylls: Born Survivor 11.30pm Wayne Rooneys
SKY SPORTS 3 2am How Do They Do It? Street Striker 12.30am Oops EXTRAORDINARY PEOPLE: THE
7pm NASCAR 8pm Fishing LIVING E4 2.30am How Its Made 3am TV 1am The Real World: Key TINIEST GIRL IN THE WORLD
Gurus 8.30pm Live Junior 7pm Ghost Whisperer 8pm 7pm Hollyoaks 7.30pm Friends Extreme Engineering 3.50am West 1.50am Caprica 2.40am FIVE, 9PM
World Championship Rugby Changing Faces 9pm Four 9pm One Tree Hill 10pm Being Special Forces Heroes 4.40am Road Wars 3.30am 24 The story of two-year-old primordial
Union 11pm Live Junior World Weddings 10pm My Husband Erica 11pm Shameless The First World War 5.30am- 4.20am Tru Calling 5.10am- dwarf Charlotte who, at 22 inches tall,
Championship Rugby Union Is Gay 11pm Criminal Minds 12.05am-6am Big Brother: Live 6am How Its Made 6am Sell Me the Answer is half the height she should be.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
11 27 13 7 36 19 17  
8 14 16

10 9 3
Place the numbers from 1 to 9 in each empty cell so that each 12 16 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 20 33
40
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 17
   
above or to the left of it. 13 14 8
You can only use the digits 1-9 30 15  
   and you must not use the
10 11 29
45   
same digit twice in a block.
   The same digit may occur 4 11  
10 13
    more than once in a row or
column, but it must be in a 22 8
6
23
12
22

35 24
   separate block.
5 
10 9 7
  9 21 12


   ACROSS DOWN
1 Isaac ___, science 1 Woody ___, US
   
   WORDWHEEL M D
ction author (6)
6 Disregard (6)
lmmaker and
comic actor (5)
2 Instance of
Using only the letters in the Wordwheel, you have 8 Edible crustacean (7)
   ten minutes to nd as many words as possible,
A I misfortune (6)
9 Go off, as with milk (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters L 10 Wanderer (5)
3 Contends (4)
4 Epicure (7)
LAST ISSUES or more, all must contain the central letter and
letters can only be used once in every word. There
A R 13 Month with 31 days (3)
5 Divine being (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
O L 14 Original disciple (7)
7 Expansion (6)
16 The alphabet (inits) (3)
QUICK CROSSWORD 3 7 6 3 1 3 1
11 Shakespeare play (7)

& 2 : $ 5 ' 6 $ / 7
2 4 8 9 3 9 2 SUDOKU         
17 Come out of an egg (5)
12 Realm (6)
8 7 9 4 2 6 3          19 Inuence in an
< $ $ ( (
2 1 4 7 9 8 6 15 Last thing mentioned (6)
1 6 ( 1 6 , 7 , 9 (          unfair way (4)
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& 2 6 0 2 6 / $ 5 ' 4 6 7 2 9 5 3 1 8 21 Mimic (7)
        
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3 9 8 9 4 9 2          20 Mixture of fog
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* 2 1 ( 5 ( 9 ( 5 7 1 7 4 7 1 4 1
Sport
32 CITYA.M. 21 JUNE 2010

Andy Murray
Henman reached the
semi-finals at
Wimbledon four
times, but expects
Murray to surpass
his achievements.

is a better Picture: Alex Ridley/


CITY A.M

player than I
ever was
Tim Henman tells Jon ever played the game.
But he [Murray] can and I think he
Couch why the British will win Grand Slams because hes
that good. Hes a better player than I
No1 can be a home hero ever was.
Hes a good friend of mine and he
knows Im always here for him. But
at Wimbledon this year hes been No2 in the world, been in
Grand Slam finals and won three
Masters series, so hes doing pretty

A
S confidants go, Tim Henman well on his own.
is a pretty good asset when it Henman, with his calming
comes to Wimbledon. Four- demeanour, stole the hearts of a
time semi-finalist and the nation during a glittering
most successful male British player Wimbledon career spanning 14 years
since Fred Perry in the 1930s, there but, unfortunately for the 35-year-old,
isnt a blade of grass on the famous his career coincided with those of
courts of SW19 that the former world grass-court legends Sampras and
No4 doesnt know. So, who better for Federer, who between them beat him
Andy Murray to fall back on? three times in his four semi-final
Like Henman before him, the cur- appearances
rent British No1 will feel the weight Sure, Murray is no stranger to
of a nation on his shoulders over the expectancy and overwhelm-
the next fortnight as he goes in ing home support at greatest disappointments. Its the Evans and Josh Goodall were knocked thing happen, then you need to give
search of a first Grand Slam suc- Wimbledon, and for Henman it biggest and best tournament in the out in qualifying, while James Ward them a path to follow, give them the
cess in front of a partisan home brings back happy memories. world and always will be. was denied a wildcard entry. opportunity, the facilities and the
crowd. I thrived on it, I played my best It means for the first time in the coaching to develop.
The feats of his predecessor tennis at Wimbledon, he added. MAGIC SECRET tournaments 133-year history there Theres no magic secret, Ive been
have already inspired Youve got to have the right mind- Despite retiring from the game in are no English players in the mens through that journey and theres a
Murray to the dizzy set, if you go into August 2007, Henman continues to draw, leaving Murray and fellow Scot lot of hard work that goes into it.
heights of No4 in the Wimbledon as a be a permanent fixture on our TV Jamie Baker as the only British repre- Weve got world class sportsmen
world, but Henman British player and screens throughout Wimbledon fort- sentatives. in other sports, but in tennis we are
believes the Scot is if your mind is dis- night, which starts today, as a BBC Its an on-going debate which not utilising the talent weve got.
primed to go one step tracted by the pundit. And the 35-year-old admits he stretches way beyond Henmans play- Tim Henman is an ambassador for the
further and finally press and media, still gets that buzz of Centre Court, ing days, but the former world No4 HSBC Road to Wimbledon National 14 &
break Britains 74-year then your mind is even though his rackets have been remains hurt that the massive invest- Under Challenge. By investing in grass
wait for home suc- distracted from the well and truly packed away. ment in nurturing young talent still roots tennis, HSBC is supporting a new gen-
cess at the All game. Theres massive excitement and isnt coming to fruition. eration of talent. For more information
England Club. I went to expectation, Henman reflects. Its This year we have the fewest num- please visit www.hsbcroadtowimbledon.com
Of course he Wimbledon when I was my favourite tournament, my ber of male British players ever and
can, Henman said. five or six for the first time favourite time of year, Im playing at thats disappointing, he added. ORDER OF PLAY | TODAY
Its not going to be and I saw [Bjorn] Borg play and I home, and had incredible support so Weve got the biggest and best tour-
easy because, like remember thinking that was I loved it, and I still enjoy this time of nament in the world but only one Centre Court (1) R Federer (Swi) v A Falla
[Pete] Sampras something I want to be a part of. It year even though Im not playing. guy getting in on his ranking and (Col); L ROBSON (GBR) v (4) J Jankovic
and [Roger] was a dream to be able to play there. Whether its in the summer or with the money that we are investing
Federer over- As my game improved I was able December time, you still get such a its not good enough.
(Ser); (3) N Djokovic (Ser) v O Rochus (Bel)
lapped in my gen- to play on Centre Court or on Court buzz about coming back here. Weve got to go back to grass roots, Court One: K Anderson (Rsa) v (7) N
eration, hes got One where the atmosphere was phe- But while Murray is left flying the the seven, eight, nine-year-olds, in all Davydenko (Rus); R Ram (USA) v (5) A
Federer and [Rafael] nomenal, its an amazing thing to flag, the rest of the British contingent areas of the country. Weve got to get Roddick (USA); R De Los Rios (Par) v (2) V
Nadal, two of the look back on. They were some of my have been left wondering what might those talented sports people with the Williams (USA)
best players who greatest achievements but also my have been. Alex Bogdanovic, Daniel desire and the hunger to make some-

FOOTBALL TRADER to see them fail to find the net. interested in the 8/13 that Paddy goals at 2.9 as it would be no surprise SPORT | IN BRIEF
Honduras were widely expected to Power offers about a Spanish win to to see a 4-0 or 5-0 scoreline; Spain have
BEN CLEMINSON finish bottom of this group after just nil. They are simply streets ahead of scored five or more goals in four of
TAKES A LOOK AT scraping through qualification. They Honduras in terms of quality and with their last 11 matches. GB claim second place in Bergen
TONIGHTS MATCH only went down 1-0 to Chile in the the Central Americans failing to score There is no real need to have a cor- ATHLETICS: Andy Turner won the 110m
first game, but they had their goal- in five of their last six games, Im rect score bet in this game, but if I was hurdles to help Great Britain clinch sec-
BETWEEN SPAIN keeper Noel Valladares to thank for happy to take the 8/13. to plump for one it would be the 4-0 ond place at the European Team
AND HONDURAS keeping the score down. The wounded From a spread betting point of view, win at around 9/1. Things can change Championships in Bergen.
animal theory could apply here and weve started to see some more high quickly at a World Cup and I confi- Turner was the only winner on day
Im sure Spain will want to send a scoring games recently and this could dently expect Spain to put their open- two but triple-jumper Phillips Idowu and

T
HE biggest shock of World message out to the rest of the competi- be one where Spain really go to town. ing defeat behind them and it 5,000m runner Jo Pavey came second.
Cup 2010 so far has undoubt- tion. David Villa will be desperate to get on wouldnt be a surprise if they still won
edly been tournament These two sides have actually met the score sheet and with Torres, Xavi the group. Gulbis pulls out of Wimbledon
favourites Spain losing to each other in the World Cup before, in and Iniesta all looking to impress, the TENNIS: Latvian 27th seed Ernests
Switzerland in their opening 1982 in Spain, where they shared the floodgates could really open. POINTERS... Gulbis has pulled out of Wimbledon with
Group H game. Vicente del points with a 1-1 draw. A repeat of that Sporting Index have the Spanish as a hamstring injury.
Bosques side didnt play badly, but scoreline is 16/1 on Betdaq, but the 1.9-2.1 supremacy favourites and Id be Spain to win to nil at 8/13 with Paddy Power Gulbis was due to meet No2 seed
they didnt show their normal cut- most likely result, a Spanish win, is 1/8 tempted to have a small buy at that Buy Spain supremacy at 2.1 with Sporting Index Rafael Nadal in the last 32 and follows
ting edge and it was a big surprise with William Hill. However, Im more figure. Similarly, Ill be looking to buy Buy total goals at 2.9 with Sporting Index Croat Ivo Karlovic and Czech Radek
Stepanek in withdrawing.
CITYA.M. 21 JUNE 2010 Sport 33

Go hard at
Johnson: I Australia,
did not think urges Colly
of quitting CRICKET


ALL-ROUNDER Paul Collingwood has
called on England to use the forth-
coming one-day series against
Australia to intimidate their old rivals
the same pitch in 2003. ahead of this years Ashes series.

RUGBY UNION
BY FRANK DALLERES The manager has already set his England set the tone for their 2005
sights firmly on challenging for the success with the aggressive and fear-
ENGLAND manager Martin Johnson trophy next year in New Zealand, in less way they took on the Aussies in
insists he has never entertained the what will be his first World Cup in a the short contests that preceded the
thought of stepping down, after cele- coaching capacity. main event.
brating the finest win of his tenure. And he has high hopes for Leicester And with another Ashes series
Saturdays hard-fought 21-20 victo- scrum-half Tom Youngs, who scored a Down Under just five months away,
ry over Australia in Sydney was try on his Test debut at the weekend Twenty20 captain Collingwood sees
Johnsons first against Tri-Nations and now looks a strong candidate to this as the perfect opportunity to lay
opposition in his two years in charge. pip Danny Care to the No9 shirt at the down another marker.
It came amid fresh criticism of the tournament. Youve got to go hard at them.
former England captain, following [The win] will give the guys belief Weve learnt that over the last five or
disappointing results in the autumn that they can win Test matches down six years, said Collingwood ahead of
and then the Six Nations. here, he added ahead of Wednesdays tomorrows first ODI.
But Johnson said: I never came final tour match against New Zealand If you go hard at them and it
close to thinking about packing it in. Maori. Whatever happens in the next comes off, it puts them under a lot of
Not seriously. Never. When youre few days we need to understand how pressure. The 2005 series was a prime
being criticised you just get on with it we can get better with the World Cup example because we had a lot of skill
and get through it. just 15 months away. but also went hard at them and well
You judge yourself and Im my The players have to have the continue to do that.
harshest critic. My coaches will tell hunger and be self-critical. Ben
me if Im doing things wrong and Youngs is a classic example of that. He ODI SCHEDULE | V AUSTRALIA
thats the way it should work. has come in, competed and done very
The winning points came from the well. Hopefully now he will go away 22 Jun, Rose Bowl (day/night); 24 Jun,
boot of substitute Jonny Wilkinson, and say Right, come on now, if we Cardiff (d/n); 27 Jun, Old Trafford; 30
just as they did when Johnson skip- work that little bit harder we can
pered the side to World Cup glory on come down here and win again. Jonny Wilkinson kicked the winning penalty for Johnsons men. Picture: GETTY
Jun, The Oval (d/n); 3 Jul, Lords
34 Sport | Football CITYA.M. 21 JUNE 2010

Results
WORLD CUP GROUP D
Ghana...............................(1) 1 Australia.............................(1) 1
Gyan 25 (pen) Holman 11
Players meet
Capello for
Att: 34,812
P W D L F A GD Pts
Ghana 2 1 1 0 2 1 1 4
Germany 2 1 0 1 4 1 3 3
Serbia 2 1 0 1 1 1 0 3
Australia 2 0 1 1 1 5 -4 1
WORLD CUP GROUP E

crisis summit
Cameroon .....................(1) 1 Denmark..............................(1) 2
Etoo 10 Bendtner 33
Att: 38,704 Rommedahl 61
Holland...........................(0) 1 Japan....................................(0) 0
Sneijder 53 Att: 62,010
P W D L F A GD Pts
Holland 2 2 0 0 3 0 3 6
Japan 2 1 0 1 1 1 0 3
Denmark 2 1 0 1 2 3 -1 3
squad, with some players thought to
Cameroon 2 0 0 2 1
WORLD CUP GROUP F
3 -2 0
WORLD CUP be unhappy at the managers tactics
Yesterday 2010 and his infamously stony demeanour.
Italy ..................................(1) 1 New Zealand.....................(1) 1 BY FRANK DALLERES And in a further sign that Capellos
Iaquinta 29 (pen) Smeltz 7 authority has been undermined, it is
Att: 38,229 ENGLANDS fraught squad held clear- thought the Football Association
Slovakia.........................(0) 0 Paraguay.............................(1) 2
Vera 27 the-air talks with manager Fabio expects him to resign if England do
Att: 26,643 Riveros 86 Capello last night in a desperate bid not reach the knockout stages.
P W D L F A GD Pts to salvage a campaign that could be We have gone to Fabio Capello and
Paraguay 2 1 1 0 3 1 2 4 dead within 48 hours. discussed possible tactical changes in
Italy 2 0 2 0 2 2 0 2 The summit was prompted by the past and we will do again if we
New Zealand 2 0 2 0 2 2 0 2
Slovakia 2 0 1 1 1 3 -2 1 Englands disastrous start to the tour- feel it needs to be done, said Terry,
WORLD CUP GROUP G
nament, which saw them follow their who was stripped of the captaincy by
Yesterday
opening draw with USA with an even Capello earlier this year.
Brazil ................................(1) 3 Ivory Coast.......................(0) 1 poorer stalemate against Algeria. We owe it to ourselves and every-
Luis Fabiano 25, 50 Drogba 79 Capellos men must now win their one back home, if we feel there is a
Elano 62 Att: 84,455 final group clash against Slovenia on problem, to say so. Whether we have
P W D L F A GD Pts Wednesday or they are likely to face a an argument with the manager or it
Brazil 2 2 0 0 5 2 3 6
Portugal 1 0 1 0 0 0 0 1 humiliating first-round exit which upsets him, everyone needs to get off
Ivory Coast 2 0 1 1 1 3 -2 1 will cost the Italian his job. their chests exactly how they feel. If
Korea DPR 1 0 0 1 1 2 -1 0 The meeting took place just hours we feel things need to change, every-
CRICKET after defender John Terry took the one needs to voice their opinion. If it
FRIENDS PROVIDENT T20North Division (Emirates extraordinary step of announcing upsets him or another player, so
Durham ICG): Nottinghamshire 186-4 (A D Brown 73no, S R that players were ready to confront what?
Patel 51) v Durham 175-5. Nottinghamshire (2pts) beat the Italian, even if it meant upsetting Terry insisted, however, that he
Durham by 11 runs.
the strong-willed coach. supported Capello, adding: Im here
(Old Trafford): Warwickshire 126-6 v Lancashire 127-5 (T C Terrys declaration fuelled sugges- on behalf of the players and we are all
Smith 51). Lancashire (2pts) beat Warwickshire by 5 wick-
ets. tions that unrest is rife amid the fully behind the manager.
(Grace Road): Leicestershire 148-8 (J W A Taylor 60) v
Yorkshire 150-1 (A W Gale 65no, J A Rudolph 53). Yorkshire

Dont laugh, but we could still win it


(2pts) beat Leicestershire by 9 wickets.
(Northampton): Derbyshire 109-9 v Northamptonshire 100-
8. Derbyshire (2pts) beat Northamptonshire by 9 runs.
(Beckenham): Somerset 189-4 (J C Hildreth 77no) v Kent
105-10 (K A Pollard 4-15). Somerset (2pts) beat Kent by 84
runs.
South Division (Brit Insurance Oval): Sussex 158-7 v Surrey
119. Sussex (2pts) beat Surrey by 39 runs.
OTHER MATCH(Whitgift School); India A 543-8 dec. (C A care and it shows they are trying to Brazil look good but no-one has him, and the best position would
Pujara 208no, W Saha 62, J Singh 58, A D Russell 5-97) v find a solution to their poor perform- played that well yet, so I think the tro- seem to be left midfield.
West Indies A 563 (D S Smith 170, A D S Fletcher 123, D E ance so far. phy is there for the taking.
Bernard 70, G C Tonge 54). India A drew with West Indies STRANGE DECISIONS
A. At Arsenal Arsene Wenger sat us There will have to be changes, how-
down a few times on a Monday morn- ever. Capello has shown he is ruthless I couldnt understand why the Italian
TODAYS DIARY ing after bad results and we would by dropping Robert Green, and he played James Milner against USA,
(Football 7.45pm unless stated)
have a chat about what was wrong. needs to go further. especially since hed not been well,
World Cup Group G England now need to play with the I dont think he has played badly, and then brought on Shaun Wright-
Portugal v Korea DPR (12.30) .............................................................................. EXPERT VIEW shackles off against Slovenia, to go but I would drop Emile Heskey, play Phillips instead of Cole.
World Cup Group H out there and believe in themselves a Steven Gerrard behind Wayne Rooney Fabio is a good manager and the
Chile v Switzerland (3pm) ......................................................................................
Spain v Honduras (7.30) ..........................................................................................
RAY PARLOUR bit more. in attack and bring in Joe Cole on the players have to take their share of
left. responsibility, but he has made some
CRICKET THERE FOR THE TAKING

I
T DOESNT have to be bad news if Cole impressed me with his per- strange decisions.
SECOND TEST MATCHday 4 of 5 (St Kitts):: West Indies v Englands players feel they need As long as they get through, and if formances during the warm-up England have been drawn in one of
South Africa. to tell Fabio Capello that they are they can get the bit of luck you need games and has got something differ- the easiest groups going we all
ASIA CUP (Dambulla):: Bangladesh v Pakistan. unhappy with certain aspects of in cup competitions, then I still really ent. He is unpredictable, takes up thought we would have no trouble
his management. believe there is a chance we could win positions that are hard to mark and getting past USA, Algeria and
SPORTS EDITOR JON COUCH In fact I think its healthy for the the tournament. tries to take players on. Slovenia so if we dont get through
email sport@cityam.com boss to listen to their opinions. They Argentina have won twice and Capello has got to find a place for then Im afraid Capello has to go.

Kaka red card dampens Brazilian celebrations


were soured by the 86th-minute dis- card, I have to congratulate him for not just once, it
BRAZIL 3 missal of Kaka.
The Real Madrid star was shown a
that.
Kaka refused to comment on his
was twice.
Erikssons men
contentious second yellow card after red card but criticised the Ivorians could still qualify
IVORY COAST 1 Abdelkader Keita ran into his shoul-
der and fell to the ground clutching
physicality, saying: It was a tough
match. It got violent in two or three
if they beat North
Korea, but their
his face. plays there. fate is unlikely to
WORLD CUP 2010 Kaka, right, will miss Fridays fix- Ivory Coast manager Sven-Goran be in their own
BY FRANK DALLERES ture against Portugal and could see Eriksson rejected Dungas com- hands.
his ban increased if it is deemed plaints, suggesting they had Sevilla star Luis
BRAZIL coach Dunga vented his fury to be violent con- bee the victims of their own Fabiano thumped
at the sending-off of Kaka after seeing duct, although it injustice when Luis his first goal high past Boubacar
his team guarantee their progression seems equally like- Fabiano appeared to Barry at the near post after 25 min-
from Group G with a slick victory.
Two goals from Luis Fabiano and
ly to be rescinded fol-
lowing widespread
handle in the build-
up to his second goal.
utes and volleyed a fine, if controver-
sial, second on 50 minutes. GROUP G
one from Elano ensured the South outcry. I heard Brazil Kaka showed flashes of his old TEAM PLD W D L F A PTS
Americans were already home and It was a totally unjustified complain a lot, but I dont form to set up former Manchester Brazil 2 2 0 0 5 2 6
dry by the time Didier Drogba headed dismissal of Kaka, he was fouled think they should, said the for- City midfielder Elano for the third Portugal 1 0 1 0 0 0 1
a late consolation. and yet he was punished, said mer England coach. It is extra just after the hour. Chelsea striker
But Brazils celebrations at reach- Dunga. The player who com- difficult when Fabiano is Drogba rose unmarked to nod a reply Ivory Coast 2 0 1 1 1 3 1
ing the last 16 with a game to spare mits the foul escapes the yellow allowed to use his hands. It was with 11 minutes remaining. North Korea 1 0 0 1 1 2 0
CITYA.M. 21 JUNE 2010 Sport | Football 35

All Whites stun holders Italy


Terry said players
were not afraid to
upset Capello by
being honest.

Picture: PA

And although Italy equalised Elliotts free-kick past goalkeeper

...but farcical ITALY 1 through a contentious Vincenzo


Iaquinta penalty, New Zealand could
Federico Marchetti. Iaquinta levelled
from the spot after Tommy Smith
yet achieve the unthinkable and was ruled to have fouled Daniele de
France squad is NEW ZEALAND 1 reach the last 16.
It is the most incredible result
Rossi as they tussled for a cross.
Earlier in Group F Enrique Vera and

in a bigger mess WORLD CUP 2010


weve had, said Herbert. We are
doing okay for a team that supposed-
ly has some amateurs and shouldnt
Carlos Riveros struck as Paraguay
took a huge step towards the last 16
with a 2-0 win over Slovakia.
BY FRANK DALLERES
be in the World Cup.

FRANCES disastrous tournament


NEW ZEALAND boss Ricki Herbert
hailed his countrys most incredible
Italy coach Marcello Lippi was at a
loss to explain his teams failure to
GROUP F
descended into farce yesterday result ever after they held world beat the tournaments 2,000-1 rank TEAM PLD W D L F A PTS
when the squad refused to train champions Italy to a shock draw. outsiders. We dominated but we did Paraguay 2 1 1 0 3 1 4
following a row over Nicolas For 18 minutes the All Whites even not create enough goalscoring oppor- Italy 2 0 2 0 2 2 2
Anelkas expulsion. led the four-time winners, after strik- tunities. I dont know why, said Lippi. N Zealand 2 0 2 1 2 2 2
A public training session had to er Shane Smeltz headed them in Smeltz struck in the seventh
be abandoned after an angry con- front during the early exchanges. minute when he prodded Simon Slovakia 2 0 1 1 1 3 1
frontation between captain
Patrice Evra and the teams fitness
coach Robert Duverne.

AM G
In a statement the players said

I T D IN
they wanted to declare their
opposition to the decision to

BR A
Y
LE L E
exclude Nicolas Anelka.

CE S
Chelsea striker Anelka was sent
home on Saturday after he refused O UK
to apologise for a foul-mouthed
PR HE

outburst at coach Raymond


T

Domenech.

FROM YOUR DESK


Domenech yesterday insisted
his spat with Anelka was not a
confrontation, but said the French
Football Federation had been right
to axe him.

IN THE CITY
Les Bleus must win their final
Group A game against South
Africa tomorrow to have any
chance of reaching the last 16.

TO THE FIRST TEE RETURN IN 24HRS!


Player uprising worked ARCHERFIELD LINKS, MONDAY 19TH JULY 2010

for Englands rugby stars


FOOTBALL COMMENT It may not look healthy or be a
FRANK DALLERES terribly edifying proposition that
Englands top footballers feel in a
strong enough position to tell their

T
HE ROT set in with dreary manager where he is going wrong.
warm-up matches, deteriorated But if history is anything to go,
during a dreadful group stage then last nights meeting might just
in which England failed to get prove to be the turning point. It cer-
out of first gear, and culminated in a tainly did not do Englands rugby
player uprising. players any harm when a clutch of
No, not the current football squad senior stars decided to air their griev-
but their rugby counterparts at the ances over tactics three years ago.
2007 World Cup in France and they It is a dangerous ploy. But now they
still made it to the final and came have done it we can only hope it rep-
within a questionable disallowed try resents a masterstroke and not a huge
of winning the trophy. error of judgement.

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on the US Open
Mine blast sparks bomb fears TODAYS MATCHES
A LOUD blast in Johannesburg sparked
fears of a terrorist attack but turned SPONSORS:
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