BUSINESS WITH PERSONALITY

VICTORY
ALL EYES ON WIMBLEDON FOR MINERS
AS MURRAY FACES NADAL HEADLINE TAX
RATE SLASHED TO
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Issue 1,168 Friday 2 July 2010 www.cityam.com FREE

BATTLE OF THE BROADCASTERS

BT yesterday attacked its major

TV rival, offering Sky Sports 1 for
as little as £6.99 a month VS. Sky pre-empted the BT move by
hiking its wholesale prices,
hitting the telecom firm hard

BT’s Ian Livingstone (left) is set for a bloody battle with BSkyB’s Jeremy Darroch

MEDIA of subscription TV appeared to versial Ofcom ruling earlier this Yesterday BT would not be degree of cost to what we offer. We
▲

BY STEVE DINNEEN
IAN Livingstone, BT chief executive,
could be staring down a £100m-a-
year black hole after announcing a
ground-breaking football package.
The former state-telecoms firm
threw the first punch in the battle
to knock Sky off its perch yester-
day, announcing the UK’s first dis-
counted offering of Sky Sports
channels.
But the undisputed champion
take BT by surprise, waiting until
just hours before the announce-
ment before saying it will hike the
price it charges its customers –
and BT.
The telecoms giant was pre-
pared to absorb a small loss but
now faces losing up to £7.08 a
month on each sports subscriber.
BT immediately said it will appeal
to the Competition Appeal
Tribunal (CAT).
The price war follows a contro-
year that Sky, whose chief execu-
tive is Jeremy Darroch and chair-
man James Murdoch, must
immediately slash the wholesale
price it charges rivals.
However, crucially, the figure
was linked to the amount Sky
charges its own customers. By rais-
ing its retail price, Sky has been
able to drag up the wholesale price
from £10.63 a month to £13.42 for
one channel or from £17.14 to
£19.07 for both.
drawn on how many subscribers it
hopes to attract with the new
package but, according to analysts,
the firm is likely to be aiming for
2m within the next five years.
If these subscribers sign up to
BT’s sports output, assuming an
equal split between the pricing
options, BT would make a loss of
£102.1m a year.
Gavin Patterson, head of retail
at BT, said: “Investments rarely pay
off in 12 months... There is a high
are interested in growing the busi-
ness in the long term.”
BT says this sum will be offset by
the extra subscribers to its bundle
packages and fewer customers
leaving the firm.
The row overshadowed the
launch of BT’s “extremely aggres-
sive” offering of live Premier
League matches, costing as little as
£6.99 a month – massively under-
cutting market leader Sky, which
creates the content.

Certified Distribution
FTSE 100 t4,805.75 -111.12 DOW t9,732.53 -41.49 NASDAQ t2,101.36 -7.88 £/$ 1.52 ▲+0.03 £/¤ t 1.21 -0.01 ¤/$ ▲1.25 +0.03 3/05/10 - 30/05/10 is 106,097
 2 News
The real causes of the crisis of 2008
EDITOR’S LETTER
ALLISTER HEATH
FOR all the latest furore surrounding
bankers’ bonuses and the rest, we
have yet again lost sight of how the cri-
sis actually began, and politicians and
regulators’ central role in promoting
it. There were many factors, of course,
with private institutions often behav-
ing foolishly – but sub-prime lending,
the crisis’ central catalyst, was pro-
moted by the US government and
encouraged by its agencies to boost
homeownership among the poor. We
forget this at our peril.
Governments have long tried to
help the poor own their own homes,
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
GENERAL ELECTRIC CHIEF VENTS
FRUSTRATION OVER CHINA
The GE chief executive Jeff Immelt
told Italian industrialists at a dinner
on Wednesday that he was worried
about the way Beijing was treating
foreign companies. “I am not sure
that in the end they want any of us to
win or any of us to be successful” said
the man who runs the largest manu-
facturing company.
BEST FOOT FORWARD AS OFFICE SEEKS
A BUYER
Office, the fashion-forward high
street shoe retailer owned by Sir Tom
Hunter, has put itself up for sale with
a price tag of £170m. It has appointed
Hawkpoint, the boutique investment
bank, and Financo, from the US, to
find a buyer. The chain was bought by
West Coast Capital in 2003 for about
£16m, and has since expanded from
21 stores to 125.
almost always for noble reasons. Some
attempts, such as Margaret Thatcher’s
right-to-buy council house policy,
worked as it required a real payment
and targeted the aspiring, successful
working class. Most other attempts,
which gave homes away entirely for
free or provided subsidised loans to
those who couldn’t afford them,
failed disastrously. One of the oldest
attempts was Abraham Lincoln’s
Homestead Act of 1862. Adults could
simply apply and claim for free
unused land outside the original 13
colonies, with the only requirement
being that they improved the land
and enclosed it. Around 2m home-
steaders took advantage of the scheme
and settled in the new West – and
about 60 per cent of them eventually
failed, a little-known fact dug out by
Bruce Yandle, a US economist, in his
fascinating paper Lost Trust: The Real
Causes of the Financial Crisis, to be
published in the Winter 2010 issue of
the Independent Review.
The evidence is clear. The subprime
Miners agree
Australian tax
MINING
▲
BY MARION DAKERS
THE AUSTRALIAN government has
settled a long-running spat with min-
ing firms over the introduction of a
mining super-profits tax.
Prime minister Julia Gillard
announced this morning that profits
on iron ore and coal mining in the
country will be taxed at 30 per cent,
down from the 40 per cent mooted by
her predecessor Kevin Rudd.
Rent tax for oil and gas resources
will be 40 per cent, as part of a pro-
posed law that will take effect from
July 2012. The taxation threshold will
be at around 12 per cent, up from the
five per cent originally planned.
“The new arrangements recognise
the preference of industry for more
generous recognition of past invest-
ment, through a credit that recognis-
ICELANDIC LENDERS FACE FRESH LOSS-
ES AFTER CAR LOANS RULING
Iceland’s banking sector is facing a
fresh wave of losses after a court rul-
ing raised doubts over the legality of
billions of dollars of loans. Financial
authorities in Reykjavik have been
scrambling for the past two weeks to
work out the implications of a land-
mark Supreme Court judgment out-
lawing car loans indexed to foreign
exchange rates.
SEX.COM DOMAIN NAME BACK ON THE
MARKET
One of the world’s most famous and
fought-over internet domain names is
up for sale again after the company
that bought it for a record $14m four
years ago faces bankruptcy. Owner
Escom LLC, a Los Angeles-based com-
pany, has been unable to repay the
loan it took out to purchase the name
in 2006. It is now being sold by Sedo,
the German domain name market-
place, which said it had already been
contacted by several parties.
problem started off as an “affordable
home” program by which traditional,
market-based constraints were eroded
and private firms bullied and incen-
tivised into lending badly. The impe-
tus came with congressional
strengthening of the Community
Reinvestment Act, the Federal
Housing Administration’s loosening
of downpayment standards, and pres-
sure exerted on mortgage lenders by
the Department of Housing and
Urban Development to lend to the
unqualified. Democrats and
Republicans are equally to blame. Bill
Clinton introduced affirmative action
quotas for Fannie Mae and Freddie
Mac – the government-backed and cre-
ated agencies which exert a massive
influence in the US mortgage market,
which is far from free – to buy poor-
quality mortgages made to low-
income families. In December 2003,
George Bush signed “the American
Dream Downpayment Act” to allow
those who couldn’t afford deposits to
buy homes.
es the market value of that invest-
ment written down over a period of
up to 25 years,” Gillard said.
The reduced levy is the result of
two months of brawls between the
government and mining giants.
“The proposal represents very sig-
nificant progress towards a minerals
taxation regime that satisfies the
industry's core principles,” said Rio
Tinto, BHP and Xstrata in a joint state-
ment.
It has been renamed the Minerals
Resource Rent Tax to reflect the
changes made since Rudd was ousted.
Australian PM Julia
Gillard has agreed a
deal with mining com-
panies just eight days
after taking on the job
SECOND CREDIT CRUNCH LOOMS... BUT
SOME PEOPLE DON’T NEED TO WORRY
Russians like Kensington, Mayfair
and Knightsbridge but are also quite
fond of Hampstead. The Americans
opt for Notting Hill - can it be the
influence of that film starring Hugh
Grant? The French head to Fulham
and Chelsea. Each of the 51 nationali-
ties now has its own preferences,
according to reseach out today from
Knight Frank, the estate agents.
WILLS CUSTOMERS MAY BE COMPEN-
SATED
The industry-funded body that repre-
sents customers of failed financial
companies has stepped in at Wills &
Co to consider compensation claims
against the stricken stockbroker. The
Financial Services Compensation
Scheme, which has declared Wills “in
default”, will consider individual
claims up to £50,000.
It worked a treat. From 1993 to
2003, subprime accounted for a tenth
of mortgages. In 2004, subprime’s
share rose to 26 per cent; in 2005, to
28 per cent; in 2006, to 40 per cent.
From 2005 to 2007, Fannie Mae and
Freddie Mac bought $1 trillion in sub-
prime and low-quality mortgages, in
many cases floating rate mortgages
that everybody knew would become
unaffordable if rates were to rise; this
intervention by Fannie and Freddie
allowed the risk to be removed from
the market. The government thus sup-
ported and encouraged private
lenders to target poor borrowers while
turning a blind eye to their inability to
repay, in the knowledge that it would
soon cease to be their problem.
Everybody interested in the real
cause of the crisis should google
Yandle’s paper. It is a breath of fresh
air at a time when the abysmal quality
of the present UK debate on the bub-
ble, macroeconomic management
and bank regulation is little short of
scandalous. allister.heath@cityam.com
THE FTSE MISERY CONTINUES
6,000
5,800
5,600
5,400
5,200
5,000
4,800
4,600
12 Apr 21 Apr 30 Apr 12 May
Traders are warning the global economy is in danger of a fresh slump Picture: REUTERS
Double-dip fears resurge
MARKETS
▲
BY KATIE HOPE
FEARS of a global slump back into
recession heightened yesterday after
a slew of negative data showed manu-
facturing output slowed across the
world and pending home sales in the
US crashed by a third.
Tokyo’s Nikkei stock index tumbled
to its lowest level since 2005, while
the FTSE 100 plunged to its lowest
level in 10 months dropping 2.3 per
cent, to 4,805.75. This is its lowest
UNITE UNION URGES INQUIRY INTO
DEATH AT TOTAL’S LINDSEY OIL REFIN-
ERY
Unite, Britain’s biggest union, has
called for an independent investiga-
tion into the death of a worker in an
explosion at Total’s Lindsey oil refin-
ery. The French energy major has shut
its Lincolnshire facility processing
200,000-223,000 barrels of crude oil
per day after the fire that also injured
two people. Tom Hardacre, Unite's
national officer for construction,
urged the oil giant to allow “an imme-
diate, independent and comprehen-
sive inquiry” into the death.
UGE PLAYS DOWN REPORT THAT CHIEF
JEFFREY IMMELT IS “WORRIED ABOUT
CHINA AND PRESIDENT OBAMA
General Electric, the US conglomer-
ate, last night sought to play down
critical comments reportedly made by
its chief executive Jeffrey Immelt.
CITYA.M. 2 JULY 2010
Aviva aims for
clarity with its
£8bn forecast
▲
INSURANCE
INSURANCE firm Aviva will tell
investors today it expects to boost the
amount of capital it generates by at
least 30 per cent this year to £1.3bn.
The firm will also say its existing
book will return £8bn in the next five
years, in an effort to clarify its money-
making potential to investors.
Aviva is said to be emphasising the
statutory IFRS basis of its financial
reports to make comparisons more
straightforward.
“It is fair to say we will de-empha-
sise market consistent embedded
value [measures]”, chief financial offi-
cer Pat Regan told the FT yesterday.
The firm’s shares fell sharply after it
moved to the measures in 2009.
The firm is set to announce the fig-
ures in an analyst finance update at
10.30am.
4,805.75
1 Jul
21 May 2 Jun 11 Jun 22 Jun 1 Jul
close since 3 September and contin-
ues the dismal second quarter trend
where the blue-chip index notched
up a 13.4 per cent decline.
In the US, the Dow Jones Industrial
Average closed 0.4 per cent lower at
9,732.53. The dollar dropped to a
seven-month low against the yen and
slid further against the euro hitting
$1.25.
“Double-dip is back in the lexicon,”
said David Bloom, currency chief at
HSBC.
ECONOMICS: P11, MARKETS: P18
US CAR SALES SLOWED IN JUNE
Auto makers saw their US sales rise in
June from the depressed level of a
year earlier, but sales fell from May as
jittery consumers slowed the pace of
recovery in the car market. General
Motors said its sales of cars and light
trucks rose 11 per cent from a year
ago, while Ford Motor Co. reported a
13 per cent increase Chrysler Group
had a rise of 35 per cent. Toyota’s
sales rose 6.8 per cent.
MCDONALD’S CUTS AGGRESSIVE
SMOOTHIE PROMOS AHEAD OF US
LAUNCH
McDonald's is warning restaurants to
chill out on Smoothie promotions so
the chain has adequate supply when
the product is launched nationally
this month. Smoothies, the latest in
an expanding beverage line at
McDonald's, will be backed by a
national marketing campaign.
CITYA.M. 2 JULY 2010
Dana reveals
takeover talk
as shares rise
▲
ENERGY
BY MARION DAKERS
OIL and gas company Dana
Petroleum has received a preliminary
takeover approach from an unnamed
company, the firm announced yester-
day.
The approach follows speculation
last week that Austrian fuel group
OMV was preparing to make a
takeover bid, which sent share prices
rocketing. Unconfirmed reports
named the Korean National Oil
Company as the current suitor.
A spokesperson for OMV last week
denied that the company was inter-
ested in Dana. KNOC was unavailable
for comment last night.
Shares in Dana closed up 3.7 per
cent yesterday at £11.77, giving the
firm a market value of about £1.05bn.
“The board of directors of Dana
notes the recent movement in the
Company’s share price and confirms
that it has received a very prelimi-
nary approach which may or may not
lead to an offer for the Company,” it
said in a statement released to the
stock market yesterday evening.
“Discussions are at a very early
stage and as such there can be no cer-
tainty as to whether any offer will be
forthcoming nor as to the level at
which any offer might be made.”
A spokesperson for Dana would not
comment on matters beyond the
firm’s announcement.Dana, part of
the FTSE 250, has oil and gas assets in
Egypt, the North Sea and Morocco. It
said last week its offshore Bamboo
project in the Nile Delta had failed,
but that it had struck oil in Egypt.
ANALYSIS l Dana
1,350 p
1,176.00
1,300
1,250
1,200
1,150
1,100
1,050
1,000
950
12 Apr 30 Apr 21 May 11 Jun
JOHN
MACGOWAN
DIRECTOR IN
CORPORATE
BROKING AT RBS
HOARE GOVETT
DANA’S advisers have had a lot on
their plate in recent months. Stephen
Bowler helped the firm take over
Dutch oil group Petro Canada
Netherlands in June for £270m, while
colleague John Macgowan was advis-
ing industrial group BSS during its
ongoing £553m takeover by Travis
Perkings.
Bowler has been director of mid-cap
business at RBS Hoare Govett since
1999, and has a wealth of experience
Don’t let it go too cheap
P
ERRENIAL takeover favourite
Dana Petroleum has finally got
an official offer. At 1,176p a
share, Dana is valued at £1.09bn
and KNOC’s bid is believed to be
around £1.5bn. But investors should-
n’t let it go on the cheap. Yes its recent
update declaring that the Monkwell
gas discovery in the UK North Sea was
1 Jul
too small to be economic was disap-
pointing, but it is exactly this that
makes Dana “a cleaner kill” according
to broker Evolution. “The fact that
Dana only has two major wells left to
drill this year, should mean that the
starting point for valuation is that
much closer,” it says.
1 Jul
in the oil and gas and mid-cap sec-
tors, including acting for Mouchel on
its recent takeover approach from VT
Group and advising on equity
fundraisings by the likes of Tullow Oil
and Northgate. He holds a BSc in eco-
nomics from the University of Exeter,
where he graduated in 1995.
MacGowan is one of RBS Hoare
Govett’s most experienced corporate
brokers, most recently advising Bovis
Homes during a £60m placing in
September and Sherborne Investors
in its £105m rights issue.
Corporate broker Hoare Govett
was itself subject to a takeover in
2007, when RBS bought it as part of
a deal to purchase holding company
ABN. It acts as broker to around a
dozen FTSE 100 companies and
employs about 60 staff.
At the end of 2009, Dana had
proven and probable reserves of 223m
barrels of oil equivalent, producing
from 36 fields in the UK North Sea,
Egypt and in North and West Africa.
With 2009 revenue of £397.3m, and
net profit of £22.m, KNOC will have to
pay a significant premium. Typically
this should be 40 per cent – or £16.45
based on Dana’s closing price yester-
day. KNOC, which has $6.5bn for
acquisitions to spend this year alone,
can afford to cough up more.
BOTTOMLINE
Analysis by Katie Hope
News 3
BA to offload
pension risk to
insurance firm
▲
AVIATION
BY MARION DAKERS
BRITISH Airways said it had removed
£1.3bn of pension risk in a deal with
Goldman Sachs-owned insurance spe-
cialists Rothesay Life yesterday,
removing another obstacle to its
planned merger with Spanish airline
Iberia.
BA will pay Rothesay for insurance
on 20 per cent of its exposure to the
Airlines Pension Scheme, which pro-
vides defined benefit pensions to
retirees and their spouses.
The news comes a week after BA
announced moves to plug its £3.7bn
pensions black hole by accelerating
payments to its two most mature
schemes.
In April BA and Iberia signed an
£5.3bn merger to create the world’s
third-biggest airline after months of
negotiations, during which the
British airline’s pension deficit had
been one of the main stumbling
blocks.
The deal with Rothesay will not
affect the deficit, but will cut the
unpredictability associated with such
a large defined benefit scheme.
“The transaction does not change
contributions from British Airways
and is consistent with the long-term
aims to reduce the reliance on the
employer over time,” said BA.
 4 News
ECB relief as
banks repay
€442bn loans
▲
EUROPEAN ECONOMY
BY MARION DAKERS
THE EUROPEAN Central Bank
breathed a sigh of relief yesterday as
banks repaid a record €442bn
(£365bn) in year-long emergency
loans.
Demand for short-term credit was
lower than expected, with Eurozone
banks taking out €403bn (£332bn) in
stopgap loans to keep liquidity during
the repayment period.
More than 1,100 banks paid back
the 12-month loans that were offered
by the ECB at the peak of the crisis.
The central bank said 78 firms took
out six-day loans worth €111.2bn
(£90bn) yesterday, following 171 who
borrowed over three months on
Wednesday, and 153 who took week-
long relief sums earlier in the week.
While the demand for further
emergency funding was lower than
expected, some analysts said con-
cerns that Eurozone banks could
struggle to eventually reimburse the
ECB remain.
“The funding pressure is signifi-
cant but not dangerous,” said Guy
LeBas, chief fixed income strategist at
Janney Montgomery Scott in
Philadelphia.
The ECB had worried that Spanish
and Greek banks might struggle to
pay, after several institutions called
publicly for the ECB to delay calling
in the funding.
City analysts closely watched the
repayments for signs of the liquidity
issues that contributed to the crisis in
2008.
“The euro area banking sector as a
whole was not as strapped for liquidi-
ty as it had appeared,” said Klaus
Baader from Societe Generale in a
note. EU BANK STRESS TESTS: P5
FAST FACTS | ECB EMERGENCY FUNDS
● The ECB is reducing the length of loans to
commercial banks to gradually normalise condi-
tions.
● It is still providing as much cash as banks ask
for to keep credit flowing to the wider economy.
Goldman Sachs denies pushing AIG
over the edge with collateral demands
INSURANCE
▲
BY HARRY BANKS
GOLDMAN Sachs officials insisted
demands for billions of dollars from
insurer AIG ahead of a $182bn gov-
ernment rescue package were based
on legitimate market prices and
denied gaming values for a massive
payout.
Members of the Financial Crisis
Inquiry Commission peppered
Goldman witnesses with questions
Former AIG CFO Elias Habayeb, Goldman
CFO David Viniar and panel chair Phil
Angelides (l-r) Pictures: GETTY, REUTERS
yesterfday about their aggressive
demands for collateral from AIG and
why the market values triggering
those demands were often lower than
others.
The issue revives a debate about
the accuracy of mark-to-market
accounting during the financial crisis
and whether Goldman got a back-
door bailout from taxpayer support
for American International Group.
Commission chairman Phil
Angelides, stopping just short of bald
CITYA.M. 2 JULY 2010
accusations, pressed Goldman offi-
cials on whether the firm was deliber-
ately driving down prices for its own
gain. “Are you then creating a self-ful-
filling prophesy?” he asked.
“We never instruct people to mark
these down,” Goldman chief financial
officer David Viniar told the panel on
its second day of looking into the role
of derivatives in the financial crisis.
He also denied Goldman got a spe-
cial benefit from the AIG bailout. “It
is not true,” said Viniar.
CITYA.M. 2 JULY 2010 News 5

Moody’s defends debt revamp

ty credit”, which is beneficial for a necessarily enhance their loss absorp-

▲
FINANCIAL SERVICES
BY HARRY BANKS
MOODY’S Investors Service today pub-
lished the revised framework the rat-
ing agency will use to assess the
relative debt and equity characteris-
tics of hybrid securities for the pur-
poses of calculating an issuer’s debt
and capital-related financial ratios.
The revised approach will change
these calculations for many firms,
but will not lead to changes in the
issuers’ ratings, solely as a result of
the revisions.
The new framework will mean that
Bundesbank vice president Franz-Christoph Zeitler said nothing had yet been decided some hybrids will receive more “equi-
company’s overall credit rating.
Moody’s decided to review its classifi-
cation of hybrids because of the cred-
it crisis, when some of these
instruments did not absorb losses in
the way they were expected to.
Hybrids are securities with a mixture
of equity and debt features. Banks
have been heavy issuers of hybrid
instruments over the past decade as
some can count towards a bank’s cap-
ital because they can absorb losses in
certain circumstances. “What
became clear is that many of the
‘bells and whistles’ used in hybrid
design over the last five years do not
tion characteristics for a ‘going con-
cern’,” Moody’s said.
Hybrids with greater loss-absorbing
characteristics will receive more equity
credit under the new system, Moody’s
said. Non-cumulative preferred securi-
ties – where the issuer has the option
to miss a coupon payment altogether –
will have the highest 75 per cent equity
credit, given that these instruments
allow for losses to be absorbed well
before a company defaults. Cumulative
subordinated debt securities, whereby
the issuer has the option to defer a
coupon payment, will receive a 50 per
cent equity component.

Details scant
as stress test
results loom
the crisis. Germany’s Finance Ministry
▲

FINANCIAL SERVICES
BY HARRY BANKS
DETAILS of Europe-wide testing of
banks’ financial vulnerabilities are
still being worked out as an end-of-
July deadline to publish the stress test
results for individual banks looms,
the Bundesbank said yesterday.
Bundesbank vice president Franz-
Christoph Zeitler said regulators were
pushing ahead with plans for the
tests, even as some reports claimed
the German central bank and the
country’s lenders opposed full disclo-
sure of the results.
Banking supervisors have been con-
ducting so-called stress tests to see
how lenders would be affected by a
sharp downturn in the economy or
other shocks. Some banks fear a back-
lash if published results don’t match
financial market expectations.
That concern was underscored yes-
terday amid fears the tests may force
two to four German banks to seek
help from the country’s bank rescue
fund, Soffin.
Soffin has pumped billions into the
country’s second-biggest lender
Commerzbank, and even took over
property lender Hypo Real Estate in
and Soffin both declined to comment
yesterday.
Zeitler side-stepped questions on
the need for aid and the degree to
which the Bundesbank may back
banks’ desire to control which results
would be published.
“At the moment, there is no reason
to make further statements related to
individual institutions,” he said.
A European Central Bank tender
yesterday eased some of the fears
about Eurozone banks that have
unnerved financial markets in recent
months, suggesting they can cope
with the repayment of almost half a
trillion in emergency loans.
In the US, regulators have told top
banks to raise $74.6bn to build a capi-
tal cushion officials hope will restore
faith in financial firms and set a
course out of the deepest recession in
decades.
Germany’s biggest lender, Deutsche
Bank, came through the financial cri-
sis without having to ask for govern-
ment aid but several of the eight
state-backed landesbank lenders had
to turn to their owners for extra back-
ing after writing billions of euros off
the value of their investments.

Q&A: EUROPEAN BANK STRESS TESTS

Q. HOW WILL EUROPE STRESS TEST

ITS BANKS?
A. Originally, EU regulators
planned to test just 25 large,
cross-border banks, including
Germany’s Deutsche Bank and
Commerzbank, France’s BNP Paribas
and Credit Agricole, and Britain’s
Royal Bank of Scotland, HSBC,
Barclays and Lloyds. Now they’re
expected to cover banks holding
about half the banking assets in each
country. The expanded tests will
include many or most of Germany’s
landesbanken or regional banks, and
many of Spain’s 45 cajas or savings
banks and a host of Irish banks.
Committee of
European Banking
Q&A
Supervisors. They will
simulate how banks cope with finan-
cial pressure on loans and other
assets in a worsening recession, and
on the strength of their Tier 1 capital.
Q. WHEN WILL RESULTS BE OUT
AND WHAT WILL THEY SHOW?
A. European leaders have pledged
to publish results by the end of
July, with no serious problems
expected to be found as banks have
strengthened themselves since the
crisis of 2007-2009.

Q. HOW WILL THESE TESTS WORK Q. WILL THE RESULTS REASSURE

MARKETS?

A.
IN PRACTICE?
National supervisors, such as
Germany’s Bafin, will carry out
A. Earlier tests didn’t help much,
but these will echo stress tests
undertaken in the US during the cri-
the tests, led by the London-based sis which did assuage some fears.
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CITYA.M. 2 JULY 2010 News 7

Aim-listed WorldSpreads
gets a boost from overseas
Lumpur, saw 41 per cent of trades exe- 4m online customers.

▲
FINANCIAL SERVICES
BY KATHLEEN BROOKS
AIM-LISTED spread betting firm
WorldSpreads yesterday announced a
jump in pre-tax profits to £2.66m for
the year ended 31 March, easily beat-
ing the £0.22m it reported in 2009.
It was overseas clients that helped
to drive performance. WorldSpreads,
which has operations in Dublin,
London, Cape Town and Kuala
cuted outside of the UK, which gener-
ated 37 per cent of all trading profit.
This helped push up earnings per
share to €0.57, from €0.2 in 2009.
It has been a busy year for the firm,
it sold its Irish spread betting busi-
ness to focus on operations in
London, as well as announcing a new
partnership with Ladbrokes to be the
exclusive provider of financial spread
betting services to the bookmaker’s
The strong bull market that lasted
until May this year, coincided with a
surge in new accounts. Over 4,000
accounts were opened in the last year
and average trades for the day topped
6,000, a 41 per cent increase on 2009.
The company does not intend to
pay a dividend. Instead it plans on
beefing up administration expenses
by £9m over the next year, in part to
boost its international operations.

Barclays’ chief executive John Varley has seen forecasts slashed Picture: REUTERS

Barclays sees
forecasts cut
their price target 10p to £4.10. “Aside
▲

BANKING
BY OLIVER SHAH
ANALYSTS slashed their forecasts for
Barclays yesterday after the British
bank warned of weakness in second
quarter investment banking revenues
and difficulties in Spain.
Barclays shares fell 5.6 per cent to
255p following guidance from
finance director Chris Lucas that
“investment banking market condi-
tions in May and June have been soft-
er, in particular reflecting lower
levels of capital markets and mergers
and acquisitions activity”. Speaking
at an analyst conference on
Wednesday, Lucas also said Barclays’
corporate division in Spain was suf-
fering from falling real estate valua-
tions in the region.
Royal Bank of Scotland reacted the
most aggressively. RBS analysts cut
their earnings per share expectations
this year by 26 per cent and dropped
from the cyclical weakness in
Barclays Capital and the group’s
Spanish operations, our updated fore-
casts also capture the UK bank levy,
lower corporate tax rates and a £1bn
gain on own debt,” RBS said.
Nomura expected first half BarCap
revenues of £6.8bn, down 35 per cent
year-on-year, while Exane BNP Paribas
changed its first half forecast from
£7.5bn to £6.9bn. Analyst Ian Gordon
wrote: “Although these trends are
already well understood by the mar-
ket, formal consensus has yet to
‘catch up’.”
The downward revisions came as
Barclays announced the launch of a
private banking joint venture in
Japan with Sumitomo Mitsui
Financial Group, the country’s third-
largest public bank. Nine Barclays
staff will work on the project, which
will try to tap the $16 trillion (£10.6
trillion) Japanese savings market.

RBS sells London’s Cumberland

Hotel to US and UK joint venture
handled the sale for RBS.
▲

ENERGY
ROYAL Bank of Scotland has sold
Cumberland Hotel in central London
for £215m to a joint venture of US pri-
vate equity firm Starwood Capital
and property investor London &
Regional.
“The Cumberland sale is the largest
hotel investment deal in Europe for
over a year,” said Derek Gammage,
head of EMEA at CBRE Hotels, which
The Cumberland forms part of an
RBS hotels portfolio, including the
landmark Grosvenor House Hotel,
that is on the market for disposal.
Parties that have bid for the
Grosvenor hotel include a joint ven-
ture of the Government of Singapore
Investment Corp (GIC) and US real
estate investment trust Host Hotels &
Resorts, as well as the Qatar
Investment Authority, sources say.
 8 Focus on EU bonus rules CITYA.M. 2 JULY 2010

Top funds forced to

Stuart Fraser of the
City of London
Corporation said
the EU rules were
“extremely restric-

set up pay panels

tive”

Picture:
Micha Theiner/
CITY A.M.

and the complexity of their activities,

▲

REGULATION
LARGER hedge funds may be forced
to set up remuneration committees,
mirroring listed companies, accord-
ing to the fine print of the European
Union’s directive on banking.
The text thrashed out by the
European parliament and member
countries says: “Credit institutions
and investment firms that are signif-
icant in terms of their size, the scope
should be required to establish a
remuneration committee as an inte-
gral part of their governance.”
The requirement would add a layer
of compulsory bureaucracy to some
of London’s most successful funds.
The EU also said staff should be
banned from using personal hedging
strategies to get around the deferral
element of its plans to align bonuses
more closely with risk.

Hedgies blast
EU bonus law
as ridiculous
▲
HEDGE FUNDS
BY OLIVER SHAH
LONDON’S hedge funds community
slammed forthcoming European
rules on bonuses as “absolutely
ridiculous” yesterday as it transpired
asset managers will be caught up in
the crackdown on bankers’ pay.
The European Union confirmed
investment firms, as defined under
the Markets in Financial Instruments
Directive (MiFiD), will fall under the
scope of its tough restrictions on
bonuses. According to plans to be
approved by the European parlia-
ment next week, the cash portion of a
reward will be capped at between 20
and 30 per cent, with two thirds of
the overall amount staggered over
held, with no shares in circulation.
Hedge fund managers are also
unsure as to how the bonus rules will
overlap with pay guidelines set out by
the Alternative Investment Fund
Managers (AIFM) directive, which is
still being argued over in Europe.
The Association of Alternative
Investment Managers, which acts on
behalf of hedge funds, re-circulated
its statement from November. It said:
“Our concern is that [the bonus clam-
pdown] contains elements which are
inappropriate for the asset manage-
ment industry… It treats hedge fund
manager performance fees in a simi-
lar way to banking bonuses when
they are in fact completely different.”
Stuart Fraser of the City of London
Corporation denounced the EU’s

Home. Whoever you play for. three to five years. At least half the
upfront element will need to be in
Make Yahoo! your home for football. shares or other performance-linked
securities which can be clawed back.
Hedge funds had expected to be
included in the legislation, but were
taken aback at being bundled togeth-
er with banks on remuneration. An
industry source said it was “absolute-
ly ridiculous” to expect asset man-
agers to pay traders in shares when
many hedge funds were privately
move as “extremely restrictive”. He
added: “I am deeply concerned about
the potential for hedge funds and
asset managers – who have repeatedly
been found to have played little or no
role in the global financial crisis – to
be caught up in this legislation and
overwhelmed with red tape.”
The UK, which is home to 80 per
cent of Europe’s hedge funds, would
be hit harder than other countries in
the region, Fraser said.

Q&A: BEHIND THE BONUS NOISE

Q. HOW LONG HAS THIS BEEN

BREWING FOR?
A. The European Union’s strictures
on bonuses are part of a wider
directive demanding higher capital
requirements from banks and a new
attitude to risk-taking. Work began
DAVID’S FAVOURITES in earnest around a year ago, and
MEPs have been explicit in linking
Sport
MLSsoccer.com
the overhaul to the events of the
financial crisis in 2008. Arlene
McCarthy, who has been pushing for
the legislation, said on Wednesday:
Yahoo! Mail “In the past two years the banks have
failed to reform, and we are now
Flickr doing the job for them.”
davidbeckham.com
Europe’s harmonised
framework on invest-
Q&A
ment firms, and even
then there will be exceptions
depending on size and the local reg-
ulator’s interpretation of the law.
Q. ARE BRITISH-BASED BANKS
EQUALLY WORRIED?
A. Not overly. The UK moved quick-
ly to implement G20-agreed caps
on bonuses last year, and many
banks – such as Barclays, which did
not take government aid during the
downturn – paid no cash bonuses to
senior managers at all last year.
Angela Knight, chief executive of the

News Q. WILL ALL HEDGE FUNDS BE

AFFECTED?
British Bankers’ Association, even
suggests the EU-wide crackdown on

yahoo.co.uk A. Not every hedge fund in the UK

will find itself under the EU’s
glare. The rules will only apply to
those vehicles operating under
lucrative pay deals could even out
the competitive landscape and put
European banks on the same footing
as their British counterparts.
CITYA.M. 2 JULY 2010 News 9

BAE SET TO CLOSE FACTORY

Rogue trader is jailed after
costing LCS £2.6m in debts
The 31-year-old inter-dealer broker ecuted by both the Financial Services

▲
REGULATION
BY JENNY FORSYTH
A ROGUE trader who cost his employ-
ers £2.6m with a series of illegal
trades was yesterday jailed for two-
and-a-half years.
Jonathan Bunn, who worked for
Lewis Charles Securities (LCS), bet
that HSBC shares would fall, building
up a short position of more than 4m
shares.
tried to cover his tracks by forging
purchase slips saying he had buyers.
But he finally confessed with a text
to his managers when he had nearly
7m shares and the price had risen.
LSC was forced to buy back £42m of
the shares at close to £6. The firm had
to cut salaries by 20 per cent and lay
off 12 people to cover losses.
Bunn, who was arrested at his
home in Weybridge, Surrey, was pros-
Authority and City of London Police
and sentenced yesterday at
Southwark Crown Court. He was also
banned from working in the finan-
cial services industry.
Judge Geoffrey Rivlin said: “I think
I can fairly say that as a result of your
very serious misconduct you have cer-
tainly made a very significant contri-
bution to bringing this company, at
least temporarily, to its knees.”

BAE Systems is set to close a its factory and design centre in Leicester, with a loss of 260
jobs, and will no longer be able to build armoured vehicles in Britain. The factory closure
means that the company is likely to stop building vehicles from 2014. That is when work
at its Newcastle factory, which employs 500 people, is due to end. Picture:REUTERS

BP is in talks
with Chinese
to sell assets
sales process of its assets, has close
BP IN CRISIS connections in Asia.
BY EMMA SADOWSKI BP declined to comment on the
deal and said that it was always the
BP COULD be close to securing a deal company’s intentions to cut $10bn
to shed parts or all of its $9bn (£5.9bn)
stake in Pan American Oil to a state-
from its assets.
News worsened for BP yesterday
Exclusive football content on Yahoo!
owned Chinese bidder as the embat-
tled oil major faces the worst ever
after a government report in the US
said that more than 140 million gal-
From a man who knows a bit about football.
recorded spill disaster in the Gulf of lons of oil have leaked into the water,
Mexico. surpassing the Ixtoc I tragedy in 1979.
It is understood that BP is holding The report, which takes into
talks with the China National account the oil already collected by
Offshore Oil Corporation to sell part BP, puts the spill as the worst record-
of its 60 per cent stake in the ed oil disaster the region.
Argentinean production company.
The deal is thought to be part of ANALYSIS l BP
the company’s plan to raise $10bn p
from selling assets to help fund the 650
Gulf spill clean-up and the liabilities 327.95
arising from the disaster. 550 1 Jul
Analysts believe the deal is a logical
move for the Chinese, which are 450
understood to already hold roughly
205m shares in BP. 350
One analyst commented that
Blackstone, which is thought to be 250
providing advice to BP through the 20 Apr 11 May 1 Jun 21 Jun

John Wood claims moratorium

on drilling will not dent profits
growth in its engineering division,
▲

ENERGY
BRITISH energy services firm John
Wood Group said it did not expect
the drilling moratorium in the Gulf
of Mexico to have a material impact
on it this year and expects 2010
results in line with expectations.
The Aberdeen, Scotland-based com-
pany said yesterday that improving
bidding volumes gave it confidence
that there would be a return to
and its North Sea-focused production
facilities were seeing robust activity.
Wood Group said it expected its
well support division’s earnings to be
ahead of expectations, driven by
stronger activity in the US. But its gas
turbines services figures would likely
dip because of deferrals by customers. Make Yahoo! your home for football.
Around four per cent of the firm’s- yahoo.co.uk
revenue is related to new deepwater
developments in the Gulf of Mexico.
 10 News CITYA.M. 2 JULY 2010

RHJ closes on
Kleinwort in
£225m deal
▲

BANKING agement buyout. The takeover marks

BY OLIVER SHAH
ONE of the oldest names in the City,
Kleinwort Benson, changed hands for
£225m yesterday as buyout house RHJ
International acquired the business
from Commerzbank.
The institution, which traces its
roots back to the 18th century, will
use a period of private ownership to
revitalise its brand by returning to
merchant banking. The company will
re-build a mergers and acquisitions
and restructuring service after quit-
ting the field in the mid-90s.
It will look to take on the likes of
NM Rothschild and Lazard in the cor-
porate advisory space.
Kleinwort’s current core wealth
management activity will remain
important, and a third leg will be
added to the business model in the
form of an institutional asset man-
agement operation, chief executive
Robert Taylor told City A.M.
RHJ agreed to buy Kleinwort in
October, scuppering plans for a man-
the fourth change of ownership for From left: RHJ chief Leonhard Fischer,
the firm in 15 years. It was bought by Kleinwort Benson Channel Islands chair
Germany’s Dresdner Bank in 1995, Richard Robins and Alan Yarrow, chair-
bundled up in the sale of Dresdner to man of KB Financial Services Holdings, will
Allianz in 2006 and passed on again play key roles in the revamped business
to Commerzbank last year.
A mid-tier presence, Kleinwort was
squeezed out of the corporate adviso- ROBERT TAYLOR “For whatever reason it’s still the grew under Allianz and Commerzbank.
ry game by more aggressive multi- name that sticks out as the leading Once it is bolted together with Belgian
national investment banks. It has CHIEF EXECUTIVE merchant bank from that time,” Taylor wealth manager KBC, which RHJ
been neglected under the shade of says. “That’s the feedback I get.” snapped up last week, it will have
larger owners in recent years. As Wall Street investment banks €10bn (£8.2bn) under management.
Taylor admitted re-entering the moved into the Square Mile and began Taylor reckons the merchant bank-
M&A game would be “tough”, but tearing market share away from ing model is due a comeback. Following
said: “The credit crunch has rede- national players, the old institutions the financial crisis, he says, “the big
fined the landscape. The clients we crumbled. Morgan Grenfell was universal investment banks are going
talk to would like to see more bou- ROBERT Taylor dreams of restoring devoured by Deutsche Bank in 1990. to have more problems competing.
tique-type offerings.” Kleinwort Benson to the glory of the Hambros Bank staggered on until They have a conflicting set of interests
1980s, when it was synonymous with 1998, when it was bought by Société and we believe the merchant banking
FAST FACTS | KLEINWORT BENSON big deals and gentlemanly conduct. Générale, while Barings was crippled ethos was one of putting clients first.”
Under the Thatcher government, by Nick Leeson’s huge fraud in 1995. Kleinwort has hard work ahead. But
● Kleinwort’s history stretches to the 1790s. Its before the “big bang” of 1986 exposed When Kleinwort was taken over by in a symbolic show of commitment to
modern form dates to the merger of Kleinwort, British banks to ferocious overseas Dresdner Bank in 1995 it pulled in its regenerating the brand, it will move
Sons & Co and Robert Benson Lonsdale in 1961. competition, Kleinwort advised on the horns, closing down its M&A advisory into new offices in Mayfair in March –
● Commerzbank was forced to sell Kleinwort privatisations of British Airways, BP business and focusing on wealth man- the 50th anniversary of the Kleinwort
after taking £15.8bn of state aid from Germany. and British Telecom. agement. The private client operation and Benson families’ first tie-up.

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CITYA.M. 2 JULY 2010 Economic News 11

Japanese business is optimistic

BoE: Mortgage crunch ahead for the first time in two years
ECONOMY However, individuals’ demand for Unexpectedly, the default rate on
▲

BY JESSICA MEAD secured lending fell in the second home loans and loans to medium would grow further in the current

HOMEBUYERS were warned yesterday
by the Bank of England that it would
be more difficult for them to obtain a
mortgage over the coming quarter as
lenders anticipated a tightening in
wholesale funding market conditions.
Availability of secured credit had
risen slightly in the three months to
early June 2010, the Bank said.
quarter, confounding expectations of
a property boom.
Household demand for unsecured
credit was reported to have risen in
the second quarter for the first time
in over a year. “Together, these factors
mean we could see unsecured lending
begin to expand, following a period
where it has remained broadly stable,”
said Barclays Capital’s Varun Bhabha.
and large private non-financial corpo-
rations fell in the second quarter of
2010. “The combination of rising gov-
ernment debt piles, bank deleverag-
ing and central bank tightening will
drive a reduction in liquidity for
many corporates. The risks of waiting
to re-finance far outweigh the bene-
fits,” said Ernst & Young’s Douglas
Middleton.
▲
JAPAN
BIG Japanese manufacturers turned
optimistic for the first time in two
years in the second quarter and fore-
cast a rise in capital spending plans,
indicating that a slow economic
recovery is taking hold.
The Bank of Japan tankan of more
than 11,000 companies also showed
optimism among big manufacturers
quarter, although analysts said the
report may not have accounted fully
for a sharp drop in Japanese stocks
between April and June and a rally in
the yen to a two-month high against
the dollar.
Most other manufacturers and
service-sector firms reported an
improvement in sentiment but were
still pessimistic.

Manufacturing slows
WORLD ECONOMY UK, the Markit/CIPS manufacturing Markowska said: “US manufacturing
▲

BY JESSICA MEAD
MANUFACTURING growth slowed
across the major economies in June as
export orders faded, according to the
series of purchasing managers’ indices
(PMIs) published yesterday.
The loss of momentum was led by
China, which saw its PMI drop to 52.1,
compared with 53.9 in May, according
to the China Federation of Logistics &
Purchasing. A rival survey conducted
by HSBC and Markit showed a fall to
50.4, only slightly above the 50 level
that separates expansion from con-
traction.
In the
PMI slipped slightly to 57.5, indicating
slower expansion. This was driven by
a six-point fall in the new export
orders balance to its lowest level since
August 2009. Analysts said this could
worsen over the coming months as a
result of the weak recovery in the
Eurozone.
Across the Atlantic, the US manu-
facturing ISM fell sharply to 56.2 from
59.7, fuelled by a slump in new orders
and production. Export orders also
fell to a six-month low.
S o c i e t e
Generale econ-
omist Aneta
growth has peaked, which is normal
at this stage of the cycle. However, the
index is declining more rapidly than
would be expected in a normal cycle.
This confirms a significant loss of
momentum and suggests that recent
consumer weakness may be spilling
over to manufacturing as well.”
Factory output in the struggling
Eurozone fell by 0.2 percentage points
to 55.6, in line with the flash esti-
mate. Analysts said that output
growth probably peaked in April.

Factory output slowed across the world Picture: GETTY

US suffers shock rise in

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fits unexpectedly rose last week,
while manufacturing activity and
employment slowed in June,
heightening fears the US econom-
ic recovery is stalling.
The Labor Department said that
initial claims for state unemploy-
ment benefits increased by 13,000
to 472,000, above expectations for
452,000.
While layoffs have slowed
sharply from early last year, busi-
nesses remain sceptical of the
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 The Capitalist
12
CITY A.M.’S STUNNING STRIMPEL
PROBES THE STRANGE MALE BRAIN
SUPER-GLAM Sketch last night played
host to the debut book launch party
of City A.M.’s very own lifestyle editor,
Zoe Strimpel. Around 80 select guests
were invited to celebrate the publica-
tion of What The Hell Is He
Thinking?, Strimpel’s eighty-ques-
tions-and-answers guide to what goes
on in the male brain. “Men are tough
to figure out at the best of times,”
said Strimpel, looking stunning in a
sleek, black Preen dress, “but in the
City they become even more
inscrutable. This is a handbook for
every woman who’s ever wondered
why the guy she snogged last night is
acting like an embarrassed teenager.
City boys are the worst culprits.”
Naturally, being organised by the
City’s most knowledgeable girl about
town, the party was a classy affair,
with the Laurent-Perrier and Pinky
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
vodka flowing freely. Guests enjoyed
the company of Bridget Jones author
Helen Fielding (not to mention the
scintillating conversation of The
Capitalist) and took advantage of free
manicures provided between sips of
champagne.
The book, published by Penguin
Books and available in bookstores
from today, is based on interviews
with hundreds of men about why
Lifestyle editor Zoe Strimpel at her book launch for What The Hell Is He Thinking?
they act the way they do. But Strimpel
insists it is not about rejecting guys
altogether: “This is not a man-bashing
book. After all, what fun would life be
without them?” We’ll say cheers to
that!
MERRILL RALLIES
Many a brave soul has started out on
the 900-mile silk route from Peking to
Paris, but not many have done it in a
vintage blue 1929 Ford Model – a
Phaeton. Step up Merrill Lynch’s
brand new vice-chairman Simon
Mackenzie Smith, who is doing the
drive with rally partner Rupert Marks
to raise money for charities DebRA,
Merrill Lynch’s Simon Mackenzie-Smith
which supports families of kids who
have the debilitating condition epi-
dermolyosis bullosa, and the Pioneer
Sailing Trust, which takes disadvan-
taged children on sailing trips.
Some of the City’s top bankers were
in attendance to hear the Rt Hon
Michael Portillo give the send-off to
the rally-drivers as they set out across
the continent, a trip that Mackenzie
Smith said he was a little “apprehen-
sive” about: “If we get through
Mongolia, we stand a chance,” he said.
“The car was a bag of bones when
we bought it on eBay.” The pair
set off in September. Bon voyage!
SHARING SHARES
It’s been quite a week for
activist investor Richard
Bernstein. First, he rather pub-
licly took on media heavy-
weight Michael Grade,
challenging him to quit as
chairman of movie studios
Pinewood Shepperton after 10
years at the helm at the firm’s
annual general meeting.
Then, on Wednesday
evening, Bernstein scooped
two awards at an inaugural
Business Charity Awards
function held at
London’s Grosvenor
House Hotel. Bernstein
was chosen by judges as
Business Charity
CITYA.M. 2 JULY 2010
Champion for inventing “share gift-
ing” and founding Share & Share
Alike, a company that encourages
publicly listed companies to donate
shares to charitable causes. Bernstein
also took home the Outstanding
Individual award for innovation and
the personal commitment he has
shown to this cause.
Bernstein said when he collected
his award: ‘This is about leadership,
but it is also about following. To make
things happen, we need people to fol-
low our example.” Since setting up
the scheme Bernstein has donated
9m shares in Eurovestech worth
£1.75m to 85 charities.
CLEGGERON STRIKES
Another on the long list of London
summer parties last night: the great
and good of Westminster flooded
over to St James’ for the Spectator
Magazine’s famous annual bash,
where the Prime Minister arrived
alongside Nick Clegg for 15 minutes
of glad-handing. Meanwhile, Danny
Alexander tramped the grounds for
the rest of the Liberal Democrats and
Tory donor Lord Ashcroft made his
first public appearance for a long
time, expertly schmoozing his way
through the urbane crowd. All round
a spec-tacular gathering.
ON THE HUNT
Secretary of state for culture Jeremy
Hunt was enjoying the attentions of
ITV’s top lobbying talent this week at
the ITV Parliamentary Reception, as
the channel pulled out all the stops to
entertain the minister in charge of TV
regulation. He opened his speech on
product placement with a joke that
even The Capitalist deemed worthy of
relaying: McDonalds’ PR supremo
meets the Pope and makes an
offer: “I’ll give you £50m if you
change the line in the Lord’s Prayer
to ‘give us this day our daily Big
Mac’.” The Pope says he will con-
sider the proposal. Back at the
Vatican, he summons his
cardinals: “Right guys,” he
says. “I have good news and
bad news. The good news is
I can get us £50m. The bad
news is we’ll have to cancel
the contract with Hovis.”
Meanwhile, ITV chairman
began with his own kind of
joke: “I’m sure you’re won-
dering how we can afford
to host a party when we
can’t even afford to pay
our shareholders a div-
idend...” Yes, Archie…
care to enlighten the
world?
Victoria Bates is away.
CITYA.M. 2 JULY 2010
General Mills plans growth
▲
CONSUMER GOODS
BY HARRY BANKS
GENERAL Mills laid out a five-year
growth plan yesterday that includes
increasing earnings per share by at
least 45 per cent and reaching $18bn
(£11.9bn) in sales.
The company, whose brands
include Cheerios, Green Giant,
Haagen-Dazs, Pillsbury and
Wheatiesmaker, said drivers of that
growth include new products and
expanding in emerging markets.
For the 2010 fiscal year, which
ended on 30 May, General Mills
earned $2.24 per share on sales of
Emerson wins
Chloride fight
as ABB retires
▲
M&A
BY HARRY BANKS
CHLORIDE is to start talks with
Emerson Electric after rival suitor ABB
pulled out in the face of an improved
£997m offer from the US group.
Emerson Electric raised its cash
offer on Tuesday by more than a third
to 375p a share, seeking to tempt the
British maker of uninterruptible
power supplies (UPS) away from an
agreed £860m deal with Swiss ABB.
ABB said yesterday it would walk
away from Chloride, whose products
protect against power outages at data
centres, airports and hospitals. Some
ABB investors had expected an
increased bid.
“While we still see considerable
value in the combination of ABB and
Chloride and have a high regard for
the Chloride management team, we
must take a disciplined approach
when assessing potential acquisi-
tions,” ABB chief executive Joe Hogan
said. Chloride said it would now enter
talks with Emerson.
On Tuesday, Chloride said
Emerson’s sweetened offer represent-
ed a superior proposal and, under the
terms of an agreement previously
signed with ABB, it had formally given
CITY VIEWS: WHAT IS THE FUTURE OF PENSIONS IN THE UK?
ANDY DEGORSKI |
DATA LOCATOR GROUP
“Government pensions are not
enough to live off and pri-
vate pensions are
struggling. I think
people will start to
look at investing in
other places
like a second
property.”
$14.8bn.
By fiscal 2015, the company is tar-
geting international sales of at least
$3.7bn, up from $2.7bn now. It
expects about $900m of that to come
from China, which currently
accounts for $350m.
The company laid out its plan dur-
ing an investor meeting that was
simultaneously broadcast over the
internet.
Earlier this week, the company
reported quarterly profit in line with
analysts’ estimates, but said gross
margins were flat, due in part to
heightened promotional activity. It
also forecast fiscal 2011 earnings
the Swiss group two days to match or
better the 375p offer.
Further offers for Chloride were
seen as unlikely, drawing a close to the
bidding war. “I can’t believe someone
will come into the frame now,” said
Steve Medlicott at Altium Securities.
“The price from Emerson was a good
price and it reflected cost reductions
which ABB could not match.”
The departure of Chloride’s white
knight ABB is a victory – albeit at
$500m more than he originally
offered to pay – for Emerson chief exec-
utive David Farr .
Late last year, Farr said Emerson was
seeking to bolster its presence in
emerging markets as the US govern-
ment was harming US manufacturers
and wasting money on bailouts.
ANALYSIS l Chloride Group
400 p 370.50
01 Jul
350
300
250
200
150
21 Apr 12 May 2 Jun 22 Jun
STEVE LAIRD | ACE GROUP
“I feel lucky that my company has
a good pension scheme because
the state pension won’t be there
by the time I retire.
Some companies have
their own pension
schemes that they dip
into, which
doesn’t
make it
safe.”
below Wall Street estimates.
It forecast full-year earnings of
$2.46 to $2.48 per share. Analysts on
average were expecting $2.49 per
share.
But chairman and chief executive
Kent Powell said the forecast is “very
much in line” with the company’s
long-term growth model.
“There must have been some expec-
tations for an upside surprise versus
our model,” said chief financial offi-
cer Don Mulligan, noting the model
calls for low single-digit growth in
sales, mid-single-digit growth in oper-
ating profit and high single-digit
growth in earnings per share.
Auction houses such as Christies fear being undermined by an EU levy Picture: REUTERS
Interviews by Emma Sadowski
NIK FIRKINS | BEAZLEY
“By the time I retire, there will be
no state pension but I am confi-
dent about my private pension. As
long as the company’s
stocks don’t plum-
met, it will be ok and
I am confident that
when I retire,
things will
have
improved.”
Toyota considers a recall
over stalling car problem
▲
AUTOMOTIVE
TOYOTA is considering recalling eight
of its models over fears they may stall
while driving.
The safety action, which has not
yet been decided, would involve
around 270,000 cars, including seven
models of the luxury Lexus. No acci-
dents have occurred due to the fault.
The problem is the latest for the
Japanese car giant, which has recalled
over 10m vehicles worldwide since
September because of unintended
Pension deficit soars to
£100bn in private sector
▲
PENSION
THE PENSION deficit among the UK’s
largest private schemes has shot up to
£100bn and could get worse within
the next year, according to new
research.
Risk management group Aon
Consulting said yesterday that the
government’s austerity measures
could add to the woes already felt by
companies sponsoring final salary
schemes as short-term funding prob-
lems are likely to cause a negative
News 13
acceleration. Toyota explained some
vehicles might have a problem with
the valve spring in their engines,
which could cause engine failure.
Some sedans may also have excessive
engine noise.
Toyota said that decisions by gov-
ernment regulators would determine
if a recall was necessary.
Last Friday, Toyota told safety regu-
lators it was halting sales and recall-
ing about 17,000 gasoline-electric
hybrid Lexus sedans due to a poten-
tial fuel leak.
Art market
fears threat
from EU levy
▲
ART
BRITISH auction houses fear that an
EU levy on works of art by the likes of
Pablo Picasso and Henri Matisse, due
to be introduced in 2012, could under-
mine their position as world leaders
in the field.
The government has a temporary
exemption from the EU’s “droit de
suite” levy on the re-sale price of
works of art payable to the artist or
the artist's inheritors for 70 years after
his or her death.
Extending the artists’ resale right
beyond living artists to those who
have died in the last 70 years would
increase the number of sales liable to
the levy by four times, according to
estimates from the British Art Market
Federation.
Considering nearly 40 per cent of
the £7.7bn annual British art market
is accounted for by modern and con-
temporary art, the levy would
“irreparably damage” the sector, the
federation added. “Art dealers and
auctioneers in Switzerland, New York
and Hong Kong must be rubbing their
hands with glee at the prospect of the
London art market having one hand
tied behind its back after January
2012,” said federation chairman
Anthony Browne.
Britain is second only to the United
States in the international art market,
accounting for 29 per cent of global
sales. Last year the sector generated
£7.7bn and £911m in tax revenues.
knock-on effect.
Marcus Hurd, head of corporate
solutions at Aon said: “A consequence
of the tough financial measures
introduced in the UK emergency
Budget is that deficits could increase
in the short-term.”
Aon said that a reduction in the
issuance of gilts, coupled with slower
economic growth could see gilt yields
fall.
It estimates that a 0.5 per cent fall
would push the deficit up by between
£43bn and £143bn.
 14 Consumer News CITYA.M. 2 JULY 2010

Diageo boosts pension with liquid gold Greene King

toasts profit
CONSUMER designed to put just over £1bn into expected to total £25m each year over It expects annual payments to the
▲

the scheme, while conditional cash the term of the partnership,” the UK scheme of £25m.

▲
BY HARRY BANKS CONSUMER
contributions into escrow will company said.
DRINKS group Diageo has agreed a amount to £338m. At the end of the 15 years, the ANALYSIS l Diageo PUB company Greene King reported a
plan with its pension fund which will The agreement will be submitted scheme must sell its interests to p 3.8 per cent increase in full-year pre-
use up to 2.5m barrels of maturing to the Pensions Regulator. Diageo for an amount expected to be 1,160 1,042.00 tax profit yesterday and said it had
Scotch whisky to help tackle a deficit Diageo said it has formed a 15-year “no greater than the deficit at that 01 Jul made an encouraging start to its cur-
of £862m. partnership under which the pension time,” which the company said would 1,120 rent fiscal year.
The defined benefit plan was scheme will own a range of maturing be up to a maximum of £430m. The pub, which operates 2,472 pubs
agreed after a triennial valuation of whisky, aged up to three years, as “This is not different from any 1,080 and restaurants across Britain, report-
the Diageo Pension Scheme last April assets. The partnership will involve 2- other offering of property (as collater- ed a pre-tax profit of £123m in the
highlighted the deficit and triggered 2.5m barrels from distilleries in al),” said a Diageo spokesman. Diageo, 1,040 year to 2 May.
a requirement to agree a 10-year fund- Scotland. the maker of Guinness stout and Greene King said sales at its man-
ing solution. “This structure will generate an Bell’s whisky, said it would also pay 1,000
aged pubs division up six per cent on
The whisky forms part of a deal income to the UK Scheme which is £197m to the scheme. 21 Apr 12 May 2 Jun 22 Jun the previous year.

Debenhams
Debenhams has
successfully protect-
ed its market share
although sales have
fallen

sales slide in
Picture: REX

tough market
RETAIL end of February – helping its share
ANALYST VIEWS: DO DEBENHAMS’ FIGURES REPRESENT PROGRESS?
▲

BY JOHN DUNNE price to nudge up yesterday.

Chief executive Rob Templeman Interviews by John Dunne
DEBENHAMS said yesterday it said tax increases and public sector
remains cautious about consumer spending cuts announced in the KEITH BOWMAN | HARGREAVES LANSDOWN

“
spending as sales dropped in the coalition government’s emergency
third quarter – offset by a rise in Budget would hit consumers.
profit margins. But he said the strategy of increas- As with the broader market, investor nerves are being tested – same store sales have fallen, whilst management

”
But the retailer said that its ing the proportion of own bought comments express caution for the consumer outlook. Nonetheless, the group’s ‘self help’ initiatives remain ongoing,
Designers at Debenhams ranges were sales, and the contribution of recent- while news in relation to a refinancing is positive. Debenhams appears to have a growth strategy.
still performing well and predicted ly acquired Danish department store
strong trading for the rest of the year. group Magasin du Nord, would help
Like-for-like sales decreased by 0.4 Debenhams to thrive.
per cent over the 42 weeks to 19 June. Templeman insisted improve- CAROLINE GULLIVER | EXCECUTION NOBLE

“
However, analysts are still forecast- ments to the group’s website and
ing that Debenhams will achieve changes to ranges would also fuel
pre-tax profits of £144m in the year to healthy profits in 2009-10 and 2010- Debenhams’ trading update was broadly positive, with weaker sales offset by better gross margin performance.

”
3 August, up from £124.9m the previ- 11. Debenhams said gross transaction Debenhams is not as operationally geared as it used to be, and is no more geared to like for like or gross margin
ous year. value rose 1.1 per cent, excluding than Marks & Spencer.
Debenhams also said yesterday Magasin du Nord.
that it had sealed a deal for the Faith
shoe chain, which had plunged into Debenhams chief Rob
administration. Templeman insists the FREDDIE GEORGE | SEYMOUR PIERCE

“
The company attributed part of the
reason for its increase in profitability chain is making good
to being very “tight on stock”. progress and says its Like-for-like sales were weaker than I had expected, but there were positives that could help the shares, includ-

”
Meanwhile it has refinanced its strategy will fuel profit ing the news on its accelerated debt refinancing. I think there are a number of factors which will lead to positive
debts – which stood at £512m at the earnings growth over the next three years.

CITY MOVES | WHO’S SWITCHING JOBS

Edited by Marion Dakers

Credit Suisse
The investment bank has appointed Levente
Kulcsar as a director and head of exchanged
That’s broadband, line rental with evening traded funds for Germany and Austria. He
& weekend calls in one lower–cost bill joins the firm from Commerzbank, where he
was head of international sales for Comstage
ETF. The firm has also promoted Annabelle
Wegner to ETF specialist head for institution-
al clients for the same region.

Nomura Kruger, Eleonora Villa, Frederic Cezard

The Japanese investment bank said
and £17 after that for ø customers yesterday it has expanded its
European equities sales team by
appointing nine new senior staff
across the continent. Thomas Stein
joins from Citigroup as head of pan-
Europe research sales for Germany.
Call 0800 954 1396 Raphaelle Vergnes takes up the same
role in France, as does as Anders
Visit o2.co.uk/niggles Haehnel in the Nordics. Hellfried
or any ø shop We’re better, connected Schram, Thomas Weichert, Sven
and Christophe Biedermann have also
been appointed.
Ernst & Young
Andy Baldwin has become managing
partner for the professional services
firm’s Europe, Middle East, India and
Africa financial services business.
Baldwin has more than 20 years’ busi-
ness advisory experience with E&Y,
IBM and Cap Gemini.

You need O2 Home Broadband to get O2 Home Phone. It’s subject to availability, 12 month contract, direct debit and a compatible phone line. Excludes cable. Price quoted is for O2 mobile customers. To appear in CITYMOVES please email your career updates and pictures
Includes calls to standard UK landlines (starting 01, 02 or 03), up to 60 minutes long from 6pm-6am weekdays or 6pm Friday to 6am Monday. Other calls have a 9p setup fee. Cheaper than our broadband to citymoves@cityam.com
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CITYA.M. 2 JULY 2010 News 15

BEST OF THE BROKERS

ANALYSIS l HMV
90 p
HMV GROUP
Citigroup said that the combination of fur-
Tate & Lyle loses its taste for
historic sugar-based products
85
57.00
01 Jul ther modest HMV market share gain
80
progress, the ongoing product mix shift,
75
and margin recovery at Waterstone’s
70
should allow HMV to retain a stable group
65
earnings before interest and taxes plat-
60
form. Citi issues a “buy” rating for the use the Tate & Lyle name, while Tate underperforming sugar operations in

▲
55
COMMODITIES
music retailer and said the Mama acquisi- BY HARRY BANKS will focus on its sweeteners such as May when he promised to focus on its
50 Splenda and its industrial starches. super sweetener Splenda and corn-
29 Mar 21 Apr 12 May 2 Jun 22 Jun tion should add steady earnings growth.
TATE & Lyle yesterday confirmed The British sugar maker’s roots go based sweeteners and starches largely
ANALYSIS l Arriva 764.00 ARRIVA plans to sell its European sugar opera- back to 1859 when Henry Tate started made in the United States.
770 p 01 Jul tions to American Sugar Refining for refining, then introduced the sugar “We see the move as positive as it
UBS reiterates its “neutral” rating for £211m, breaking a 150-year link to cube to Britain in 1875, and his legacy offers a cash injection and a move
760 Arriva but changed its price target to 775p sugar in favour of low-calorie sweeten- lives on after he bequeathed his paint- away from commoditised businesses,”
750
in order to reflect the price that Deutsche ers offering faster growth. ings to form the nucleus of London’s said analyst Dirk Van Vlaanderen at
Bahn is making under the terms of its The privately-owned US group is Tate Britain gallery. Jefferies International, while Graham
740
agreed takeover bid. On 17 June Arriva buying Tate’s sugar and Golden Syrup Tate’s new chief executive Javed Jones at Panmure Gordon said it was a
business with a perpetual licence to Ahmed sparked talk of a sale of its welcome move at a good price.
730 held its AGM and also the court meeting to
720 approve the scheme of arrangement. UBS
notes that the scheme was passed at both
710
29 Mar 21 Apr 12 May 2 Jun 22 Jun meetings.
ANALYSIS l Vodafone 138.35 VODAFONE
155 p 01 Jul JP Morgan Cazenove said that it sees fur-
150 ther improvements in revenue trends at
145
Vodafone but at a slower rate compared to
recent quarters. JP Morgan gives the tele-
140
coms group an “overweight” rating and
135 says that whilst its underlying estimates
130 are unchanged, its headline figures fall by
around two per cent due to updated cur-
125
29 Mar 21 Apr 12 May 2 Jun 22 Jun rency assumptions.
To appear in Best of the Brokers email your research to notes@cityam.com

Astra hit with

antitrust fine
ities could be seen as abusive by regu-
▲

PHARMACEUTICALS
BY HARRY BANKS
A EUROPEAN Union court backed an
EU antitrust decision against Anglo-
Swedish drugmakerAstraZeneca yes-
terday, lending weight to a regulatory
crackdown on firms blocking cheaper
drugs coming to market.
Antitrust lawyers said the ruling
set a firm legal precedent for the reg-
ulator in its fight against companies
suspected of preventing consumers
from obtaining less expensive generic
treatments.
“Basically the regulator’s hand has
been strengthened,” said Nicola Dagg,
head of intellectual property litiga-
tion practice at Allen & Overy.
“Pharmaceutical companies that
get involved in those specific activi-
ties set out in the judgment will fall
foul of the regulator,” she said,
adding that it would be difficult for
companies to know what other activ-
lators.
In 2005, the European
Commission, which acts as the EU’s
competition watchdog, said
AstraZeneca had breached EU rules
by blocking or delaying market access
to generic versions of its ulcer pill
Losec between 1993 and 2000.
The General Court, Europe’s sec-
ond-highest, ruled that the European
Commission’s decision was justified.
“The General Court essentially
upholds the decision of the
Commission which found that the
AstraZeneca Group abused its domi-
nant position by preventing the mar-
keting of generic products replicating
Losec,” the court said in a statement.
However, the court reduced the fine
to €52.5m (£43.2m) from €60m, saying
the Commission had not proved that
the deregistration of marketing autho-
risations for the drug in Denmark and
Norway affected parallel imports.

Forth Ports expects first half to

be ahead of same period in 2009
tions,” the company said.
▲

TRANSPORT
THE country’s only listed ports compa-
ny, Forth Ports, yesterday said it expect-
ed earnings for the first half of 2010 to
be well ahead of last year as it cut costs
and improved efficiencies.
“With our improved operational
gearing, diversified cargo and broad
customer base, we are confident that
the underlying outcome for the full-
year will be in line with our expecta-
A spokesman for the company said
“an enormous amount of work into
reducing cost base and improvements
in efficiency” were behind the compa-
ny’s improved performance.
Forth Ports, which successfully
fought off a £640m takeover approach
from shareholders earlier this year,
manages and owns several commer-
cial ports in Britain, including six in
Scotland and Tilbury on the Thames.
 16 News
New code pressures
investors to engage
REGULATION
▲
BY EMMA SADOWSKI
SHAREHOLDERS will have to take
more responsibility for the compa-
nies they invest following today’s pub-
lication of the first ever Stewardship
Code by the Financial Reporting
Council (FRC).
The new code aims to create more
transparency about how investors
oversee the companies they own.
FRC chairman Baroness Hogg said
she hoped the new code would be a
catalyst for better engagement
between shareholders and compa-
nies.
She said: “Disclosures made by
WHAT DOES THE NEW CODE MEAN?
Q. WHAT
CODE?
IS THE STEWARDSHIP
A. The Stewardship Code, the first
of its kind for the Financial
Reporting Council (FRC), seeks to cre-
ate greater transparency around the
way investors oversee the companies
they own by encouraging better dia-
logue between shareholders and
company boards.
Q. WHAT DOES THE FRC HOPE TO
A.
ACHIEVE?
The FRC hopes that the new
Stewardship Code will create a
stronger link between the gover-
nance and investment process and
said that it expects the code to evolve
over time as the industry learns
from the experience.
Discover Dundee
  
institutions under the code should
assist companies to understand the
approach and expectations of their
major shareholders.”
The FRC has urged companies to
report publicly on the extent to
which they meet the requirements of
the code and said that by late
September, it plans to publish a list of
compliant companies on its website.
Jennifer Harris, managing director
at JRBH said: “Will this provoke a
change in behaviour? It should
already be in the shareholders inter-
est to make sure the company is per-
forming well. So this is a bit like
reminding a pilot that he has to fly a
plane.”
Q. HOW WILL INVESTORS HAVE TO
COMPLY? Q. WILL
INVESTORS
A. HAVE TO UPDATE COM-
The FRC said that all institution-
PANY POLICIES?
al investors should publicly
A.
report on the extent to which they
comply with the code. They may
have to update corporate governance
measures, which will usually appear
in the company’s accounts.
Q. WHAT
TO DO?
WILL INVESTORS HAVE
A. Institutional investors will have
to proactively monitor the com-
panies they have invested in and
escalate activities taken to protect
and enhance shareholder value.
Under the code, investors will also
have to report periodically on their
voting activities and stewardship.
CITYA.M. 2 JULY 2010
STEWARDSHIP CODE| INVESTORS SHOULD:
● Publicly disclose policy on how they will
discharge their stewardship responsibilities.
● Have a robust policy on managing con-
flict of interest in relation to stewardship
and this policy should be publicly disclosed.
● Monitor investee companies. Establish
clear guidelines on when and how they will FRC chairman Baroness Hogg says the code should mean better engagement Picture: REX
escalate their activities as a method of pro-
tecting and enhancing shareholder value.
● Be willing to act collectively with other WHAT DO YOU THINK OF THE NEW
companies where appropriate.
● Have a clear policy on voting and disclo-
STEWARDSHIP CODE? Interviews by Emma Sadowski
sure of voting activity.
● Report periodically on stewardship.
ROGER BARKER | INSTITUTE OF DIRECTORS
“
Q&A “Institutional shareholders have a key role to play in the corporate gov-
ernance system. This code should be a catalyst for them to rethink how they can
”
fulfil this role effectively.”
JOHN CRIDLAND | CBI
The FRC said that investors
“
should have a robust policy on
managing conflicts of interest in
relation to stewardship and will have “Boards are being asked to raise corporate governance standards and
to demonstrate clear voting policies increase engagement with investors. We welcome this as a way to build a long-
”
and voting disclosure. Investors will term approach to ownership, but dialogue is a two-way street and institutional
have to be willing to act collectively
with other investors where appropri-
investors need to raise their game too.”
ate.
COLIN MELVIN | HERMES EQUITY OWNERSHIP SERVICES
“
Q. WHEN DOES THE CODE COME
INTO EFFECT?
“It is an opportunity for the UK market to reduce its tendency to short-
A. The Stewardship Code comes
into effect immediately. The FRC termism and refocus on long-term value. That will help companies avoid pressures
”
will publish a list of compliant to think in a short-term way, and should generate greater long-term value for pen-
investors on its website. sion funds and their millions of underlying beneficiaries.”
US Treasury nets $2bn as it offloads

 
  
  



 
 
   


shares in Citi to cut its stake to 18pc
FINANCIAL SERVICES
▲
BY HARRY BANKS
THE US Treasury said yesterday it
has earned a gross profit of about
$2bn (£1.3bn) on sales of about one-
third of its common stock holdings
in Citigroup as the government
ramps up efforts to unwind bailout
programmes.
The sales have cut the Treasury’s
from only for 2 people 2 nights in August stake in the bank from nearly 27
per cent to about 17.6 per cent. Citi
£168 *
B&B
a saving of up to
20% on normal rates
shares rose briefly in morning trad-
ing, before falling about 1.33 per
cent to $3.71.
Citigroup investors predicted the
over the next two weeks, as the gov-
ernment pauses in its sales efforts.
But the general overhang on
Citigroup stock will remain until
the Treasury sells the rest of its
stake, they said.
Pressure on Citi shares will ease
when “you get rid of the govern-
ment ownership, which is huge,”
said Bill Smith, chief executive at
Smith Asset Management.
The government is unwinding
stakes it acquired in Citi, General
Motors, American International
Group and Chrysler Group after
hundreds of billions of dollars in
bailouts in 2008 and 2009.
per cent of GM stock as a result of
its $50bn bailout last year, hopes to
sell about 20 per cent of its hold-
ings as part of the automaker’s ini-
tial public offering.
That figure could change, accord-
ing to sources with knowledge of
the preparations.
The Treasury said yesterday it
took in gross proceeds of about
$10.5bn from the sale of 2.6bn
Citigroup shares under a written
trading plan.
The Treasury said that after sell-
ing its second tranche of common
stock acquired after bailing out the
banking giant, it still holds about
 & "' #'
"

 %" #&# ' "!  company’s stock may rally briefly The Treasury, which owns 60.8 5.1bn shares.
#%$  !" !  #"'  ! $ ! "  " ! 
'# ! "   NEWS | IN BRIEF
 $   #! % "! " #
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 "     #!  #
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( (($ /","- apexhotels.co.uk (+ %% 0844 875 5113 William Grant seals C&C deal Genmab hit by Glaxo deal revision Greece to strike again

+" *.(- ", -! -(-% )+" (+   '" !- ,-2 (+  .%-, (' ' /' William Grant & Sons yesterday com- GlaxoSmithkline (GSK) and Denmark's Greece’s main labour unions called a
).+!, ,", -, "'%.  ' + ,.#- -( )+(&(-"('% +((& pleted its purchase of C&C’s spirits and Genmab said yesterday they had 24-hour strike for 8 July yesterday in
/"%"%"-2  '(' +.'% )(,"- (+ -! .%% +,+/-"(' /%. ", +*."+ -
-! -"& ( (($"'  !' , '  & -( 2(.+ (($"'  .- + ,.#- -(
liqueurs division for €300m (£246m) amended a licensing agreement for protest against sweeping pension
-+&, )1 +,+/, -! +" !- -( 0"-!+0 -!", (+ 0"-!(.- '(-" 4+ The Scottish distillery will now own their Arzerra cancer drug in a way that reforms to help end a debt crisis. It will
/"%% -0'  ' 
(($ -!", (+ 2 -! .%2 brands including Tullamore Dew Irish will have a “material impact” on be the sixth joint stoppage this year by


", -2 ' - +  ", ,-2 ' - + - )1 (-%, ",    Whiskey, Carolans, Frangelico and Irish Genmab’s 2010 prospects. The compa- Greece’s main public and private sector
2+, (+ .'+ - ' +"'$ (+ + 0!' "'"' ( (.+ $", &'. 0"-! '
(&)'2"' )2"' .,- ,-2"' ' "'"' - -! !(-% !"%+'    -(
Mist, The new business will operate as nies did not specify the effect on unions, which together represent

,-2 + .- )2 (+ %% &%, (',.& - -! !(-% (+ !"%+'    William Grant & Sons Irish Brands Ltd. Genmab which will receive an upfront about 2.5m workers, or half the Greek
' (/ -! ('%"' (($"' ,.&&+2 0"%% ",)%2 ' "-"('% 3 )+ !"% Its portfolio already includes payment of £90m from GSK but will workforce. Private sector union GSEE
)+ '" !- (+ +$,- Glenfiddich and The Balvenie Single see planned milestone payments cut or said the strike would coincide with a
Apex Hotels (  ( #  ( # Malt Scotch Whiskies, Grant's Scotch cancelled. "The amendment will have a vote in parliament on pension reform,
Whisky, Hendrick's Gin and Sailor material impact on Genmab's 2010 part of a package agreed in return for
Jerry spiced rum. financial guidance,” Genmab said. a €110bn EU/IMF bailout.
CITYA.M. 2 JULY 2010
Kindle price cut for
second time in a
week as war hots up
TECHNOLOGY
▲
BY STEVE DINNEEN
AMAZON cut the price of its Kindle
range of e-readers for the second time
in a week yesterday as it unveiled its
updated DX model.
In a bid to stave off fierce competi-
tion from Apple’s iPad, Amazon cut
the price of its high-end reader from
$489 (£327) to just $379.
The new version features a 9.7 inch
screen – identical to the iPad – and a
black rim. It also comes with free 3G
wireless connection with no monthly
bills or annual contracts.
The internet giant slashed the price
for its standard ebook reader in the
US from $259 to $189. Reductions are
expected to reach the UK soon.
Rival Barnes & Noble also lowered
the price of its Nook reader to $199.
At stake is the market share for e-
ITV: Broadcasting
reform is urgent
MEDIA
▲
BY STEVE DINNEEN
ITV has launched a plea to the gov-
ernment to overhaul the “archaic”
regulatory system it says is stran-
gling the industry.
Chairman Archie Norman used
the firm’s annual Parliamentary
Reception to implore MPs to tear
up the broadcasting rule-book.
Norman said: “You must be won-
dering why we have put on this
party when we can’t afford to pay a
dividend. There is an underlying
motive... We are working under an
archaic regulatory system. We are
the second biggest investor in pro-
graming after the BBC and we
want to be able to continue to
invest in quality drama, sports and
Microsoft pulls plug on first venture
into lucrative smartphone market
▲
TELECOMS
MICROSOFT has pulled the plug on
a new generation of smartphones
less than three months after it
unveiled the devices in an attempt
to catch-up with Apple and Google
in the fast-growing mobile market.
Microsoft said it had cancelled
plans to sell its “Kin” phones in
Europe later this year.
The company added the internal
team working on the Kin phones
would be combined with the group
working on Microsoft’s forthcom-
ing Windows Phone 7 software.
Media and Technology News 17
updated Kindle DX:
$489
Orange and
Old price:
T-Mobile
New price: $379
finish merger
standard Kindle:
Old price: $259
▲
TELECOMS
New price: $189 BY STEVE DINNEEN
books, the fastest-growing segment in ORANGE and T-Mobile officially
a moribund bookselling industry. completed their merger yesterday,
Industry experts and rivals say the with all staff now officially working
field will get even busier, with more e- for Everything Everywhere.
readers expected this year. Nook reader: The firm also announced three
Apple’s iPad, launched in April at a new vice presidents at the firm; Neil
starting price of $499, can function as
an e-reader, but unlike competing
Old price: $259 Macgeorge, VP of products; Simon
Frumkin, VP of procurement and
models, it has a color screen and can
be used as a full computer. It sold
New price: $199 supply chain; and Stephen Harris
who will take the role of chief of
more than 2m units in its first 60 staff. The firm’s 16,500 staff will see
days and its own e-bookstore has their headquarters rebranded and
quickly won an estimated 22 per cent email addresses updated.
market share. iPad: The two distinct brands will still
Some analysts say dedicated e-read-
ers such as Nook and Kindle are
Top of the range: be used for retail purposes.
Tom Alexander, chief executive of
appealing because they consume less
power, are easier to read on, and
$829 Everything Everywhere said: “The
formal integration of our new com-
weigh less.
Shares of Amazon.com are down
Standard: $499 pany, Everything Everywhere
Limited, is another major milestone
about 18 per cent so far this year, less and reflects the rapid progress we
than the 32 per cent decline in Barnes have made over the past nine
& Noble shares. Amazon’s Kindle is facing fierce competition from Apple’s iPad Picture: REUTERS months.
BIG
NIGHT
LIVE
entertainment programing.” bling, tobacco, alcohol, baby milk
Culture secretary Jeremy Hunt and medicines will be banned
said: “The regulatory framework in from product placement, as will
place was developed in a time sellers of salty and sugary food. It
before Google had a higher also said product placement will be
turnover than ITV. It is a changing banned in all children’s, news and
media landscape and we will look current affairs programmes.
at ways of updating regulation to
allow outlets like ITV to continue
The proposals also include a
requirement for broadcasters to let
AT THE STOOP
to produce quality programing.”
He made specific reference to
viewers know which programmes
contain product placement
)5,'$<WK-8/<30.,&.2))
    
the announcement last month
that product placement rules will
through the use of an on-air sym-
bol at the start and end of shows. +$5/(48,165/Y
  
be overhauled, which analysts esti-
mate could net ITV an additional
£100m a year.
Culture secretary %5$')25'%8//6
 
Ofcom says it will allow paid-for
Jeremy Hunt says he /,9(683(5/($*8(
  
is committed to
product placement in some pro-
graming but will restrict the types bringing media
/,9(086,&
 
of products that can be placed. regulation up to date. /,9('$1&(
 
Companies advertising gam-
63(&,$/2))(5

$'8/76….,'6…
  
The Kin phones represented soft- phone’s production, would not
ware giant Microsoft’s first foray comment yesterday on the impact
into designing its own phones. of Microsoft’s decision.
The two Kin models featured
built-in internet social networking ANALYSIS l Microsoft
32 $
functionality as well as Microsoft’s
Zune digital music player and were
&$//12:$1'4827(¶5/2))(5·
aimed at savvy young phone users.
30 23.15 25%5,1*7+,6)/<(5217+('$<
1 Jul
Microsoft began selling the Kin



28
phones with Verizon Wireless in
May. 26
Microsoft said: “We will contin-
ue to work with Verizon in the US 24
to sell current Kin phones.”
Finnish electronics company 22
Elcoteq, responsible for part of the 29 Mar 22 Apr 12 May 1 Jun 21 Jun
 Markets&Investment
18 CITYA.M. 2 JULY 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .262.70* –3.40 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .126.00 –5.00 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .49.10 –1.25 71.75 31.75 Schroders . . . . . . . . . . . . . . . . . 1154.00 –59.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . .109.40* –3.60 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .502.00* –10.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .521.50 –4.00 604.50 399.00 Schroders N/V. . . . . . . . . . . . . . .950.50 –50.50 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .950.50* –24.00 1045.00 752.00 Cookson . . . . . . . . . . . . . . . . . . .367.40 –20.30 616.00 220.00 Johnson Matthey . . . . . . . . . . .1460.00* –34.00 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1118.00 –1.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .124.00 –5.00 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . . .971.00 –37.00 1047.00 529.00 Kazakhmys . . . . . . . . . . . . . . . . .965.00 –29.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .533.00* –23.50 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1390.00 –19.00 1441.00 861.00 CSR . . . . . . . . . . . . . . . . . . . . . .368.50 –8.10 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .121.60 –0.30 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .250.20 –3.60 403.10 244.80
Aegis . . . . . . . . . . . . . . . . . . . . .103.60* –3.30 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .433.00* –6.00 539.00 279.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .206.60 –4.60 255.00 178.00
Afren . . . . . . . . . . . . . . . . . . . . . .79.15 –5.90 111.00 48.50 Dana Petroleum . . . . . . . . . . . . 1177.00 +42.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .125.00 –2.20 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .572.00 –16.00 656.50 394.30
African Barr Gold . . . . . . . . . . . .618.00 –16.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .360.90 –6.10 442.30 311.25 Lancashire Hldgs . . . . . . . . . . . .494.50 –3.80 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1216.00* –15.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1390.00 –25.00 1496.00 492.50 De La Rue . . . . . . . . . . . . . . . . . .945.00 –2.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .551.00* –7.50 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .349.30* –10.70 426.50 285.25
Alliance Trust . . . . . . . . . . . . . . .293.50* –10.20 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .55.10 +2.10 91.95 51.95 Legal & General . . . . . . . . . . . . . .75.80 –2.85 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1341.00 –33.00 1526.00 816.00
AMEC . . . . . . . . . . . . . . . . . . . . .805.50* –20.50 891.00 603.50 Derwent London . . . . . . . . . . . .1208.00 –42.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .52.21 –1.49 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . . .98.80 –2.90 146.60 86.75
Amlin . . . . . . . . . . . . . . . . . . . . .381.50 –6.30 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .135.00 –3.00 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .104.50 –4.70 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .615.50 –20.00 700.50 435.25
Anglo American . . . . . . . . . . . .2271.50 –79.00 3015.50 1557.50 Diageo . . . . . . . . . . . . . . . . . . .1042.00 –18.00 1176.00 857.00 London Stk Exchange . . . . . . . . .544.00 –19.50 949.50 542.00 Smiths . . . . . . . . . . . . . . . . . . .1043.00 –29.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .763.50 –23.00 1100.00 561.00 Dimension Data . . . . . . . . . . . . . .90.00 –4.50 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1355.00 –56.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .384.00 –13.60 444.60 380.60
Aquarius Platinum . . . . . . . . . . .300.00 –28.30 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .378.40 –1.60 387.80 202.00 Man . . . . . . . . . . . . . . . . . . . . . .216.00* –7.30 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .740.50 –35.50 928.00 512.50
ARM Holdings . . . . . . . . . . . . . . .272.30 –5.20 362.40 116.00 Drax . . . . . . . . . . . . . . . . . . . . . .374.40 –1.90 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .327.20* –4.60 412.70 303.75 Spirax-Sarco Eng . . . . . . . . . . .1346.00 –24.00 1591.00 809.00
Arriva . . . . . . . . . . . . . . . . . . . . .764.00 –1.00 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .24.28 –0.53 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .305.80 –8.30 331.00 151.75 Spirent Comms . . . . . . . . . . . . . .108.50 –1.20 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .236.50 –6.80 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .333.60 +2.50 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .203.40 –7.00 251.50 90.00
Astrazeneca . . . . . . . . . . . . . . .3093.00 –76.00 3262.00 2631.50 Easyjet . . . . . . . . . . . . . . . . . . . .391.40 –6.40 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .840.00* –23.50 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .101.90 –2.40 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .683.50 — 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .372.20* –11.20 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .351.00 –21.80 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .789.00 –21.00 893.50 506.00
Autonomy Corp . . . . . . . . . . . .1798.00 –39.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .209.70* –7.20 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .410.50 –12.10 550.00 300.90 St James’s Place . . . . . . . . . . . . .204.20 –8.00 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1145.00* +15.00 1237.00 666.50 EnQuest . . . . . . . . . . . . . . . . . . . .96.00 –3.40 112.70 87.35 Millen & Copthorne . . . . . . . . . . .392.00 –15.00 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .171.40 –5.60 204.90 123.25
Aviva . . . . . . . . . . . . . . . . . . . . .305.80 –8.30 474.00 274.75 Essar Energy . . . . . . . . . . . . . . .462.20 –13.00 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .229.20 –4.80 281.70 165.25 Standard Chartered . . . . . . . . . .1600.50 –40.50 1847.00 1119.00
Babcock International . . . . . . . . .598.50* +1.50 660.50 448.50 Eurasian Nat Res . . . . . . . . . . . .818.00 –43.00 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .275.60 +1.60 343.90 228.30 Standard Life . . . . . . . . . . . . . . .173.00 –1.50 237.00 170.00
BAE Systems . . . . . . . . . . . . . . .307.20 –6.30 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .577.00* –22.50 630.00 200.25 MITIE . . . . . . . . . . . . . . . . . . . . .207.80* –4.50 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .720.00 –25.00 764.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .229.80* –9.50 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .584.00* –2.00 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .370.10 –14.00 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .120.40 –4.60 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .255.35 –15.20 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .91.40 — 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .275.50 –10.50 321.20 222.00 Talvivaara Mining . . . . . . . . . . . .359.60 –5.40 501.50 319.00
Barratt Development . . . . . . . . . . .92.45 –2.35 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .235.00 –13.30 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .262.70 –3.40 306.30 234.75 Tate & Lyle . . . . . . . . . . . . . . . . .454.40* +4.70 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .178.40 –4.90 220.00 105.00 FirstGroup . . . . . . . . . . . . . . . . .358.00 –7.60 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .805.50 –20.00 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .25.65 –0.71 54.90 24.29
Beazley. . . . . . . . . . . . . . . . . . . .109.10 –4.00 124.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .251.40 –7.60 297.20 210.25 National Express. . . . . . . . . . . . .215.10 –5.00 256.80 135.86 Telecity . . . . . . . . . . . . . . . . . . . .393.00 –7.40 455.00 296.00
Bellway. . . . . . . . . . . . . . . . . . . .589.00* –26.50 927.50 589.00 Fresnillo . . . . . . . . . . . . . . . . . . .969.00 –10.50 1115.00 438.00 National Grid . . . . . . . . . . . . . . .485.00* –6.00 607.65 469.37
Berkeley . . . . . . . . . . . . . . . . . . .769.50 +6.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .263.00 –4.30 285.70 203.75 Next . . . . . . . . . . . . . . . . . . . . .1977.00* –32.00 2360.00 1485.00 Templeton Emrg Mkts . . . . . . . . .515.00* –13.00 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1002.00 –4.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .439.10 –16.90 484.00 370.00 Northumbrian Water . . . . . . . . . .300.40 –4.20 312.00 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .377.50* –2.55 454.90 347.40
BHP Billiton . . . . . . . . . . . . . . .1694.50 –60.00 2346.00 1274.50 GKN . . . . . . . . . . . . . . . . . . . . . .109.30 –7.00 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . .102.00 –1.50 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .177.70 –0.90 277.20 172.30
BlackRock Mining . . . . . . . . . . . .535.50 –13.50 654.50 346.00 GlaxoSmithKline . . . . . . . . . . . . 1109.50* –33.50 1347.00 1058.00 Partygaming . . . . . . . . . . . . . . . .206.00 –10.30 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .218.70 –8.10 261.10 141.75
Booker . . . . . . . . . . . . . . . . . . . . .39.50* –1.50 49.50 33.00 Great Portland Estates . . . . . . . .282.70 –8.20 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .864.00 –24.00 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .709.00 –24.00 915.00 523.50
BP . . . . . . . . . . . . . . . . . . . . . . .327.95 +9.05 658.20 296.00 Greene King . . . . . . . . . . . . . . . .395.00 +2.70 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .546.00 –7.00 567.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .206.10 –3.20 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .887.50* –17.50 970.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .486.00* –3.70 562.50 306.25 Persimmon . . . . . . . . . . . . . . . . .342.10 –7.90 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .307.50 –8.40 436.20 261.20
British Airways . . . . . . . . . . . . . .186.50 –9.50 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .265.40 –8.70 284.90 184.00 Petrofac . . . . . . . . . . . . . . . . . . 1141.00 –45.00 1294.00 633.50 Tullow Oil . . . . . . . . . . . . . . . . . .991.50 –11.50 1375.00 834.50
British Amer. Tob . . . . . . . . . . .2091.00 –45.50 2335.50 1671.00 Hammerson . . . . . . . . . . . . . . . .337.00 –6.70 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . . 1144.00 –46.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .78.40 –0.95 84.90 62.25
British Empire Tst . . . . . . . . . . . .406.90 –10.10 467.90 338.50 Hargreaves Lansdown . . . . . . . .326.40 –12.00 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .212.80 –6.20 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1522.00 –15.00 1678.00 1079.00
British Land . . . . . . . . . . . . . . . .429.00 –6.60 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .89.90 –1.80 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1226.00 –17.00 1431.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1757.00 –44.00 2024.00 1419.00
Britvic. . . . . . . . . . . . . . . . . . . . .477.60* +2.20 497.70 277.00 Henderson . . . . . . . . . . . . . . . . . 118.10 –4.70 157.80 87.75 Provident Financial . . . . . . . . . . .828.50 –11.50 986.00 763.00 United Utilities . . . . . . . . . . . . . .522.00* –3.50 575.00 429.00
Brown(N.) . . . . . . . . . . . . . . . . . .247.00* –3.30 284.30 204.25 Heritage Oil. . . . . . . . . . . . . . . . .369.60 –24.60 587.00 369.60 Prudential . . . . . . . . . . . . . . . . . .489.20 –19.30 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .695.50 –5.00 732.00 452.75 Hikma Pharma . . . . . . . . . . . . . .692.00 –21.50 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .339.50 –2.30 344.50 197.00 Utd Business Media . . . . . . . . . .483.80 –13.20 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .128.00 –2.10 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .336.10 –6.30 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . . 116.30 –0.80 179.10 113.90 Vedanta Resources . . . . . . . . . .2073.00 –52.00 2967.00 1264.00
Bunzl . . . . . . . . . . . . . . . . . . . . .661.50* –12.00 784.50 498.25 Hochschild Mining . . . . . . . . . . .300.00 –7.90 370.60 220.00 Randgold Resources. . . . . . . . .6080.00 –345.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . .1049.00* –45.00 1193.00 537.00
Burberry . . . . . . . . . . . . . . . . . . .745.50 –16.00 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .210.10* –4.40 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3085.00 –47.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .138.35* –0.80 153.80 111.90
Cable & Wire Comms . . . . . . . . . .57.70* –0.05 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2010.00* +3.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .490.20 –8.80 548.00 403.75 VT . . . . . . . . . . . . . . . . . . . . . . .773.50 –1.50 785.00 416.00
Cable & Wire Wwide . . . . . . . . . . .85.50* –1.10 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .599.10* –16.10 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .69.60 –0.30 125.50 61.00 Weir . . . . . . . . . . . . . . . . . . . . .1024.00 –13.00 1183.00 437.50
Cairn Energy. . . . . . . . . . . . . . . .401.30 –13.60 448.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .439.40 –8.90 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . .103.30 –4.60 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .401.00 –8.30 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1539.00 –44.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .387.20 –18.00 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .66.25 +2.95 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1361.00* –48.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .732.00 –9.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .421.00 — 458.20 261.25 Rexam . . . . . . . . . . . . . . . . . . . .293.80 –9.20 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .168.60 –2.70 217.80 160.50
Capital & Counties . . . . . . . . . . .108.00 –0.50 125.40 99.60 Imagination Tech Gp . . . . . . . . . .273.10 –7.10 311.60 130.00 Rightmove . . . . . . . . . . . . . . . . .619.50 –10.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .409.90 –9.60 487.00 329.50
Capital Shopping Centres . . . . . .301.30 –10.30 580.00 300.20 IMI . . . . . . . . . . . . . . . . . . . . . . .670.00 –17.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .2904.50 –64.00 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1297.00 –42.00 1742.00 1026.00
Carillion . . . . . . . . . . . . . . . . . . .297.90 –11.10 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1849.00 –30.00 2159.00 1554.00 RIT Capital Partners . . . . . . . . . 1117.00 –30.00 1200.00 877.00
Carnival . . . . . . . . . . . . . . . . . . 2110.00 –73.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .237.10 –8.90 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .535.00* –27.50 631.50 346.50 Wood Group (John). . . . . . . . . . .310.90 –2.30 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .346.50 –5.20 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .342.10 –13.60 439.40 216.00 Rotork . . . . . . . . . . . . . . . . . . .1254.00* –31.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .614.50 –21.00 744.00 380.50
Centamin Egypt . . . . . . . . . . . . .157.50 –6.90 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .715.50 +1.00 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .39.47 –1.96 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .845.80 –41.00 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .293.50 –3.20 320.00 212.50 Intercontl Hotels . . . . . . . . . . . .1046.00 –17.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1624.00 –77.00 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .24.00 –0.51 86.00 21.00
Charter Intl . . . . . . . . . . . . . . . . .594.50 –34.00 855.50 406.50 Intermediate Capital . . . . . . . . . .240.40 –9.60 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1554.00 –77.00 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2899.00 –75.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1437.00 –6.00 1576.00 1024.00 RSA Insurance . . . . . . . . . . . . . . 117.90 –1.70 142.00 113.10
Chloride Group . . . . . . . . . . . . . .370.10 –15.90 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .296.30 –4.00 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1827.00 –62.00 2090.00 1210.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .670.00 –23.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .238.90* –2.70 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .225.70 –5.90 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .210.60* –2.70 278.60 172.80 Investec . . . . . . . . . . . . . . . . . . .429.20 –24.40 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .317.20* –4.30 373.00 307.60 www.interactivedata.com

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WATCH HIM EVERY FRIDAY
Allister Heath gives his views on the market and economic situation
VISIT WWW.CITYAM.COM SPONSORED BY

Lowest FTSE close in ten months as US Labour figures and metal

manufacturing lull fuels double dip fears miners drag on Wall St
fell to its lowest in six months, while cent respectively. dropped 41.49 points, or 0.42 per cent,

THELONDON contracts for pending sales of previ-

ously owned homes plunged a record
30 per cent in May, far more than
Worries over the stability of the
recovery overtook reports in the
Sydney Morning Herald which said
THENEW YORK to 9,732.53. The Standard & Poor’s 500
Index shed 3.33 points, or 0.32 per
cent, to 1,027.38. The Nasdaq
REPORT expected.
The US figures followed data from
China showing manufacturing
key mining companies have agreed a
compromise on a mining "super tax".
The blue-chip index lost more than
REPORT Composite Index lost 7.88 points, or
0.37 per cent, to 2,101.36.
Gold mining company stocks were

B
RITAIN’S top shares hit a 10- growth slowed in June. In Britain, a 13 per cent in the second-quarter, the among the hardest hit yesterday after

U
month closing low yesterday as rebound in manufacturing slowed worst fall since the third-quarter of S stocks fell yesterday as manu- being one the few strong sectors in
downbeat data from the US, from a 15-year high in June as export 2002 when the dotcom boom col- facturing and labour market the second quarter as the price of
China and Britain sparked dou- order growth all but ran out of steam. lapsed, but index compilers FTSE data heightened fears of a dou- gold fell.
ble-dip recession fears, triggering a Commodity-linked assets were Group said BP accounted for almost a ble-dip recession before today’s Shares of Barrick Gold dropped 5.2
broad sell-off, with banks and miners among the hardest hit as base metals third of this. key employment report. per cent to $43.06 and Newmont
the hardest hit. and crude prices fell across the board BP was one of the only two risers Major indexes were lower for a Mining Corp slid 4.5 per cent to
The FTSE 100 fell 111.12 points, or as fears of demand drying up rippled on the FTSE 100 yesterday, gaining 2.8 fourth straight day after suffering $59.99. The PHLX Gold/Silver Sector
2.3 per cent, to 4,805.75 – its lowest through the market. per cent with traders citing talk that their worst quarter since late 2008, index fell 4.4 per cent.
close since 3 September 2009. Miners Randgold and Eurasian the oil giant had capped the leaking but losses eased near the end of the Ford Motor rose 4.9 per cent to
Markets were spooked after a key Natural Resources were among the well in the Gulf of Mexico. Royal session. $10.57, after the firm reported June
survey of US manufacturing activity worst off, down 5.4 per cent and 5 per Dutch Shell fell 4.5 per cent The Dow Jones industrial average sales gained 15 per cent.
CITYA.M. 2 JULY 2010 Investment | Personal Finance 19

Pick your money manager wisely

When you are seeking financial
advice, it’s worth taking your
time over it, writes Jessica Mead

A
S A nation, we are apparently more
likely to seek professional advice on
our hair, our gardens and our cars
than on our personal finances. Yet
with the growing number and complexity
of products on offer, it is becoming more
important for people to seek advice before
they take a decision – particularly if their
finances are already complicated enough.
There are some organisations such as
the Pensions Advisory Service and the
Consumer Financial Education Body,
which all provide financial help on a range
of products. But if your finances are more
complicated and you want advice on your
whole financial situation, then hiring an
independent financial adviser (IFA) can be
worthwhile.
But how do you go about finding one
that meets your needs? There are thou-
sands of IFAs registered in the UK, so look-
ing for one can be a daunting task. To
whittle it down, there are a number of
things you should consider.
First, seek personal recommendations.
These can be both a reassuring and a suc-
cessful route to selecting an adviser but
bear in mind that what suited a friend or
colleague may not be appropriate for your
circumstances. If you can’t get such rec-
ommendations, then there are plenty of have to be able to trust them with your There are certain criteria that a good IFA Make sure your IFA the other financial arrangements that you
online search sites such as unbiased.co.uk, money and be able to communicate with should fulfil. Karen Barrett, chief executive can give you a have in place.
the Association of Independent Financial them. You should also consider whether of unbiased.co.uk, says that she would rundown of your You should also expect a quick review of
Advisers (www.aifa.net) or searchifa.co.uk. you want your IFA to be close to your work expect an IFA to be able to tell you clearly finances your situation from your IFA at least once a
You should ask IFAs to provide you with or to your home. If you choose to go down what they do and the type of clients that year. After the relationship has been estab-
details of existing customers who are the online route, then it might be safer to they have. “They should also stress that Picture: GETTY lished, it is then up to the client how often
happy to talk to you and you should also choose a more well-known brand that has they are an independent financial adviser they want updates, says Barrett. You
check that they are registered with the been strongly recommended. and that they offer the whole range of should also seek advice if you experience a
Financial Services Authority (FSA). Third, check the IFA’s qualifications. markets. If they don’t, then you should life-changing event such as getting mar-
Second, consider the location. Despite Some are specialists in certain areas such look elsewhere,” she says. ried, having a child or buying a house.
the rise of the internet, most people still as pensions or investments so if you have An IFA needs to be able to explain how Getting advice on your finances is
like to meet their IFAs, at least initially. certain requirements, then look for an IFA products are structured and, more impor- important but it is equally important to
This is understandable, given that you that has the relevant qualifications. tantly, what they are doing for you given choose the right adviser.

FINE WINE IS tions and offer up plenty of up-to-the-minute

comment and ideas.
What is investment wine?
THE ULTIMATE In other words, how does it differ from the
oceans of plonk that line our supermarket
shelves? In a word, scarcity. Wines which
LIQUID ASSET have the combination of characteristics nec-
essary to be deemed investment grade – that
is, limited availability, brand status, critical
praise, market liquidity – are in practice very
GARY BOOM rare. Focusing on the key market of
Bordeaux, there are perhaps only 30 to 40
MD & FOUNDER OF FINE WINE Chateaux that meet the grade. Collectively
MERCHANT BORDEAUX INDEX they only produce around a quarter of a mil-
lion cases a year. Moreover, given the legal
33.2 per cent year-on-year. While demand is
fully international, Hong Kong/China is by far
the fastest growing region – and has the
tion to 100 cases to a hotel chain. Such data
remains frustratingly difficult for outsiders to
obtain. Private clients can certainly gain a
greatest potential too. decent feel for pricing by using our charting
Is wine correlated with other capital
markets?
facility, alongside our intra-day Bordeaux
Index as well as reading our quarterly mar-
ket reports, which are available free to sub-
Long-run correlations with both equities and
fixed income are very weak. Post-Lehman,
prices declined by around 20 per cent but
scribers on our website.
For critical opinion, Robert Parker is still
the leading commentator and has by far the
within 18 months they had fully recovered. biggest impact on prices. Other critics such
Previous crises, such as the Asian currency
crisis and the aftermath of the tech crash,
as Neal Martin, Jancis Robinson and Michael
Schuster are important for forming a consen-
have been characterised by periods of moder- sus view.
ate and stable growth. We will see what hap-
pens over the coming months but fine wine Where is the best place to start trading?

W
ELCOME to what is the first in a
series of short articles looking at
wine investment. While the City is
well acquainted with the sensory
pleasures of wine, it tends to be much less
familiar with holding and trading wine as an
asset. With this in mind, we’ll be cutting
through the pomposity that afflicts this busi-
ness to take a good look at the structure of
the market, address some key readers’ ques-
and practical restrictions that hinder new-
comers, the market has real barriers to entry.
How has wine performed in the last year?
The fine wine market has generally been in
good health for the past two decades but
things are certainly robust at the moment.
The Bordeaux Index (derived from our
LiveTrade two-way trading screen) has
returned 21.5 per cent year-to-date and is up
tends to have its own distinctive rhythm and
pace.
How do I learn about the market?
While analysis grounded in financial discipline
is becoming more common, it remains fairly
thin on the ground. As ever, raw data is the
key to really understanding activity; for
example, 100 cases of Lafite 2003 sold to an
investment fund is a very different proposi-
Wine is essentially an over-the-counter mar-
ket so you’ll have to do your due diligence to
ensure you get the right volumes at the right
price. Use platforms like LiveTrade for com-
prehensive cover of the key lines. And above
all, make sure you have full confidence with
whom you are dealing.
The market is abuzz with the release of the
highly-rated Bordeaux 2009. We’ll focus on
this in our next column. Happy drinking.

INVESTMENT
INVEST STTMENT
TM WINE
WINE O
ORR
Str aightforwar
aightforward d advi ce.
Plus worl d fi rst: Li veT
veTrade
rade
our uni que two-way tradi ng

INVESTMENT
IINVEST
NVESTSTTMENT
TM WHINE?
W
WH
HINE?
INE?
screen.
scr een. Regi ster at
www.
www . bordeauxindex.com

TTHE
HE TRUTH
TR
RUTH UNCORKED
UN
NCORKED D
W I N E S E L E C T I O N S I M P L I F I E D

10 Hatton Garden,
Gar den, London EC 1N
8A
8AHH | T
Tel:
el: +44 (0) 20 7269 0703
 City Focus
20
Master of the antiques world
Thomas Woodham-Smith is
intent on making the art market
fun. Kathleen Brooks meets him
E
CCENTRIC springs to mind when I
meet Thomas Woodham-Smith. He
bounds into the Mallett showroom
on Bond Street where he is managing
director, second to chief executive Giles
Hutchinson Smith, and shows me a picture
he had taken on his way to the interview:
“It’s a happy piece of string, I just saw it
lying there on the side of the road, I love
random things like that,” he says as he ush-
ers me upstairs.
But it soon becomes apparent that
Woodham-Smith is a towering force in the
antiques market. He has just come back
from Masterpiece London, which he found-
ed along with five others including luxury
goods maker Aspreys, and he is in high spir-
its about its success: “The best compliment
I got during the whole week was “Tom, this
is fantastic, it’s like one of your parties”, I
couldn’t beat that.”
Masterpiece London – held in the former
Chelsea Barracks – had118 exhibitors, rang-
ing from cognac makers to handbag
designers. “The philosophy behind it was
that a true masterpiece doesn’t have to
come from the past and it doesn’t have to
be expensive,” he says.
It cost £5m to stage. Some of the money
came from his employer Mallett and he
expects it to make a loss for the first year.
He says he started it to stimulate demand
in the market, and well he might: “We have
a unique challenge, we are in a dying or
substantially reduced antiques market. I
joined Mallett in 1985, and even then you
could rely on an auction sale of furniture
every day of the week in London, that’s
gone now,” he says.
His entrepreneurial spirit flows into his
It’s official, hard
graft is in fashion
Entrepreneurs can follow the Chancellor’s
footsteps and have their own austerity budgets
ALEX PRATT
ENTREPRENEUR
I
N THE beginning the word was
George. And George said, “Let there be
cuts”. And there were cuts. And
George saw that the cuts were good….
So what are we to do at this dawning of
the new Age of Austerity? We’re hardly
likely to move our offices north to take
advantage of the national insurance sub-
sidy made available to those with a provin-
cial accent and postcode north of Watford,
are we?
Well, my first advice is not to panic.
Remember that your team is your most
expensive cost, so doing anything rash like
| Going It Alone
Thomas Woodham-
Smith is shaking up the
antiques market
Picture:
Micha Theiner
/City A.M.
day job at Mallett. On the second floor of
the showroom a dozen French café chairs
made of tin and painted to resemble drums
are arranged in neat rows as if in anticipa-
tion of a concert. “There are 30 of them in
all. I found them in a flea market in Paris,
and just picked them up. My colleagues
here were slightly horrified I think, I had to
get a truck to bring them back, but they’ve
got used to them now.”
His interest in antiques goes back to
childhood. When he wasn’t rearranging
the furniture in his mother’s sitting room,
he would be making little museums in his
bedroom. “A resounding success was an
“exhibition” of postcards with famous por-
traits on them. I lined my bedroom walls
with them and would charge my mother’s
friends a pound to give them a guided
tour.”
His other side-business is Hatfields, a
restoration firm he founded that is based
in Clapham. It hires 12 craftsmen and takes
on young interns to keep the skills of
restoration alive: “The conservation of skills
is as important as the preservation of the
removing the water coolers will only serve
to spook them and end up costing more
than it saves.
The critical focus should be improving
your productivity. But cut staff numbers
only once, so those left are not forever look-
ing over their shoulders.
It’s probably worth remembering that
you can’t save your way to success either. In
the end, business is all about investing in
people and capital, and while cash will,
rightly at times, assume the mantle of
King, the heart of the enterprise must beat
to the tune of return on this investment.
Some good news is that many of the old
rules have now changed and you have per-
mission to be much bolder than in the
time of plenty. Your team will have been
reminded that entitlements are not the
human rights we thought they had
become. They need to be afforded. And it
finally seems acceptable to work hard
again. The political march towards forever
demeaning hard graft as the root of every
societal ill, which culminated in it actually
being outlawed beyond 35 hours a week in
In association with CITYA.M. 2 JULY 2010
LISTING
Q.
I would one day like
to float my company,
Q&A
what steps should I implement to
prepare for this?
A.
Before you list on a stock market like
Aim you have to be assessed by a
nomad, a nominated advisor such as
an investment bank, corporate finance firm
or accountancy firm. The nomad will look at
your company’s structure, its board, each of
its directors, any potential advisors and
assess whether the firm will enhance the
reputation of the market and offer real value
to shareholders. You have to pass this
assessment before you can list. Due to this,
it’s worth getting your house in order before
you go through the process of trying to float
your company. Stephen Hamilton, corporate
finance associate at law firm Mills & Reeve,
says that the first thing a company should do
is take a look at its board structure: “Before
any company can float it will need directors
on the board with plc experience and some
independent non-executive directors on top
objects.” He acknowledges that Hatfields of that.”
has had a “tough two years”, however
Q.
turnover is projected to be £1m this year How often should the board meet?
and profits between £50,000-£100,000.
And his advice for fellow entrepreneurs?
“Lots of people, especially dealers, always
A.
say no, they don’t want to take the risk of Hamilton says that usually the mini-
buying something a little leftfield. But I mum number of directors on the
have learned that the best thing is to board of a listed company is four,
always say yes to everything and then find which should also be the target number for
a way do it.” firms that have yet to list. He also recom-
mends that a board meets at least once
every couple of months, and the smaller the
CV | THOMAS WOODHAM-SMITH board the more regular the meetings. You
also need to have a strong remuneration poli-
Age: 48 sign and replaced it with that.” cy for the board. “Executive directors, those
Lives: Stockwell with his wife and Interests: “Salt. Everyone seems that work for the company, should have pay
two teenage children to say that a low-salt diet is good, that is linked to the performance of the com-
pany, whereas non-executive directors
Drives: “A Transformers car. but we all need salt. I would like should not have their pay determined on the
Honestly. I bought a Saab from eBay to make salt. We have so many performance of the firm. The idea behind this
and found someone in China who salt marshes in the UK that are is that non-executive directors will then be
able to take decisions without thinking about
manufactured Transformers’ car under utilised. That would make a the short-term success of the company.” The
insignia, so I whipped off the Saab good business opportunity.” nomad will also look for strong management
and risk controls, so robust risk systems
should be in place.
Q.
What sort of performance does my
company need to show before I
can list?
A.
Expect the nomad to scour through
your balance sheet looking for at
least three years of sustained
growth. Ebitda, gross profits and margins
will all be analysed to see if the company
offers growth potential and real value to
shareholders, writes Colin Aaronson, director
of capital markets at Grant Thornton, in A
Guide to Aim, published by the stock
exchange. Nomads will also want to see sales
forecasts and proof that your company com-
pares well with its peers. Aaronson also
writes that companies should expect their
accounting standards to be scrutinised to
ensure that they are in line with the best
practices. “The fundamental question that a
nomad should ask is whether the prospective
AIM company has a sustainable competitive
advantage that can be further exploited to
create shareholder value,” writes Aaronson.
For example, patent copyright or another
form of intellectual property protection. For
more information see: http://www.london-
stockexchange.com/companies-and-advi-
sors/aim/publications/publications.htm
Kathleen Brooks
Elbow grease is France, seems at last to have hit the buffers.
back in vogue Watch out for the inevitable backlash of
strikes and unrest from the deniers who
Picture: GETTY prefer to pull their luddite duvets over
their heads as the austerity hits the fan and
distributes its economic shrapnel around
the economy.
Its now official – George has told us –
Graft is Good. Elbow grease is back.
Alex Pratt, OBE, is author of “Austerity
Business”. It’s available now, priced at £12.99.
 Living
22 CITYA.M. 2 JULY 2010

| Summer Style

Snap up your castle Why the City still

in the Cotswolds, p28 loves Surrey, p24
The Caribbean weathers Make your garden
the financial storm, p26 light and bright p32

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The Galleries offers a wealth of period features

complemented by beautiful courtyard gardens and all
within commuting distance of the City.
1, 2 & 3 bedroom conversion apartments
priced from £250,000 to £525,000
Call: 01277 202122
Open daily 10am – 5pm
Virtual Tour: www.the-galleries-net
The Galleries, Pastoral Way,
Brentwood, Essex, CM14 5GF
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package value £2,500. Terms, conditions and timescales apply. Reservations must be made by 30th July. CGI of Adagio apartments and Queen Mary’s Gate. Photographs of Stadia and Kinetica.
 24 Living | Commuting
WINTERSHAW, WESTCOTT
£1m
A superb listed Georgian house overlooking the green in the highly regarded village of Westcott, just a couple of
miles from Dorking, in turn 50 minutes from Waterloo or Victoria, this is a classy family home. Built around 1740,
the house was extended and altered over the following 150 years but retains a number of its original features
including wide panelled doors, sash windows and several fireplaces.
Contact: 01306 885466. www.hamptons.co.uk
Surrey is still the homeliest home county
Quaint villages and links to London make
this commuter heaven, writes Juliet Samuel
I
F you are looking for a family home,
Surrey is a good place to start. Unlike
some of the suburbs closer to
London, Surrey has villages with
character and history, fine pubs and some
wonderful schools.
Many of Surrey’s best spots also have a
direct connection to Waterloo, an easy
hop from the City. The town of Cobham is
becoming an increasingly popular loca-
tion for City workers looking for a country
village feel with first-rate homes and
access to countryside. It’s 40 minutes from
Waterloo and a short drive from the A3.
Alongside the commuters, the affluent
area also houses many Chelsea footballers,
whose training ground is near the village.
They are doubtless attracted by the histor-
ical town centre with its old-fashioned
high street with brick houses and a mill
dating back to 1822 over the River Mole.
Just across the M25, Dorking, nestled in
the heart of the Surrey Hills and just
south of the beautiful North Downs,
offers commuters easy access to the
motorway and a 50-minute journey to
Waterloo. The village itself is an old mar-
ket town known for its pretty Victorian
streets of antiques shops, pubs dating
back to the 16th century and for being
home to one of the Pilgrim Fathers (his
house is still standing).
Godalming is even older, having been
listed in the Domesday Book. It is an old
wool-trading and leather-works village
famous for being the first town in the
world with a public electricity supply.
Built on a scenic canal off the River Wey,
with a village centre that features Tudor
houses, boutique shops and a circular old
town hall built in 1814 known as the “pep-
perpot”, on Sundays the place bustles
with a local farmer’s market. It lies just
south of Guildford, 50 minutes from
Waterloo.
HISTORICAL VILLAGES
Aside from historical villages, Surrey also
offers commuter buyers a wide range of
first-class schools: Charterhouse in
Godalming; Amesbury and St Edmund’s
in Hindhead; Woolmer Hill Technology
College in Haslemere; and
Bartholomew’s, a Church of England pri-
mary school rated outstanding by Ofsted.
It is hardly a surprise, with so many pos-
itives, that Surrey prices are on the rise.
But its sizeable portions of green belt land
and forested countryside, great train con-
nections and an abiding cultural heritage,
an investment in a high-quality home
with character and history is bound to pay
off. For buyers interested in more than the
standard modern-style bricks and mortar
offering with a newly planted square of
green space, the area can’t be beaten.
CITYA.M. 2 JULY 2010
PIPER’S GATE
£995,000
Built seven years ago by
Berkeley Homes, this is a short
walk from Cobham/Stoke
d'Abernon station and the
charming Cobham high street.
A key feature is the secluded and
private south-facing rear garden.
It has an entrance hall, drawing
room, family room,
kitchen/breakfast room next
door to a playroom and a fitted
study. There are five bedrooms,
two with en-suites, and a family
bathroom with separate shower
cubicle. The property is accessed
via wrought iron electric gates
and has parking for several cars
on the driveway, and a double
garage. Contact: 01932 588
288, www.gascoignes.co.uk
SHAMLEY HOUSE,
SHAMLEY GREEN
£1.8m
A superb Grade II-listed period
house restored to 21st century
specifications, this property has
delightful gardens and views
directly across the lovely village
green. The main bedroom fea-
tures vaulted beams, an attached
study/dressing room and en suite
shower room. There is a recep-
tion hall, dining hall, drawing
room, games room, gym, sitting
room, study, superb vaulted
kitchen/breakfast room with
Aga, cloakroom and utility room.
There are four further double
bedrooms and a bathroom and
shower room. It’s five miles from
Guildford station – 35 minutes to
Waterloo. Contact: 01483
893939, www.grantley.net
St
CARVERS HOUSE, HASLEMERE
£4.15m
A fascinating Elizabethan-style country house set in one of the best locations in Haslemere, with far-reaching views
to the south in a peaceful setting in grounds of 11.5 acres. The property consists of a reception hall, cloakroom, sit-
ting room with open fire, dining room, conservatory, modern kitchen/breakfast room, four bedrooms, a bath/shower
room, plenty of parking and a garden backing onto farmland.
Contact: 01428 664800, www.clarkegammon.co.uk
CITYA.M. 2 JULY 2010 Living | Commuting 25

GRATTON CORNER, GODALMING

£1.1m
A charming Grade II-listed village house with beautiful views over the common and a landscaped south west-fac-
ing garden. It features a hall, cloakroom, drawing room, dining hall, sitting room, breakfast room and kitchen. There
is an en-suite master bredroom, two further bedrooms and a family bathroom. The detached garages contain a
workship/utility room, a wine store and greenhouse. Also included is a barn featuring its own sitting room with
wood burner, dining area, kitchenette, bathroom and loft bedroom. Godalming station (45 minutes to Waterloo) is
nearby. Contact: 01483 893939, www.grantley.net
SILVERWOOD, PACK COPSE, DORKING
£1.75m
Silverwood is a 1920s house in one of the most sought-after locations in Dorking, Park
Copse, a highly regarded rhododendron-lined private road just close to Dorking town
centre, which has a range of shops, restaurants and schools. The house also has
far-reaching views across the rear slopes of Boxhill and over Brockham and Betchworth.
Contact: 01306 885466, www.hamptons.co.uk
 26 Living | Overseas Property
Keep it real in the
Caribbean, just
the place for sun,
sand and security
The West Indies is always a winner – and it’s
a great investment too, writes Zoe Strimpel
T
HE appeal of white sand, turquoise
sea and a developed infrastructure
all in one is too strong to be
destroyed by an economic down-
turn, even this one. While prices sank by
20-25 per cent in two of the British
Caribbean’s hottest spots, Barbados and St
Lucia, the market has far from stalled.
In fact, buyers have begun to see the
Caribbean’s more established islands as a
safe-haven for their money and they
remain a great choice while the economy
remains fragile. “In 2004 and 2005, peo-
ple were being more adventurous about
where they’d look to buy,” says Julian
Cunningham, of Knight Frank. “They
were looking for the next Barbados, St
Lucia or Antigua, at the lesser-known
islands off the coast of Venezuela and in
the Grenadines. But as the global market
fell into downturn, interest remained but
contracted considerably, and demand
withdrew to the more tried-and-tested
islands.”
Now, says Cunningham, people are
looking for flexibility and security above
all. “Buyers are looking at the liquidity of
the purchase: how hard or easy to sell it
will be within a reasonably short time
frame if you need to. It’s not about
whether you’re rich or poor, it’s about you
and your life – things happen, you could
lose an income, or have a divorce, and it’s
important to know you could shift your
property.”
Unlike many less-developed islands,
Barbados has a strongly established prop-
erty market and all the structure and
infrastructure to support it. With newer
hotspots, the holiday home market is less
mature, so everyone’s a first-time buyer,
OCEAN VIEW, MERLIN BAY, ST JAMES
Price $1.7m
This exclusive townhouse complex enjoys a wonderful beachfront location along the
renowned West Coast of Barbados, conveniently located between the historic towns of
Holetown and Speightstown, with championship golf courses within a 10-minute drive.
One of eight houses surrounding a central swimming pool with a spacious sun-deck, the
three-bed, split level property has fabulous ocean views.
Contact: Knight Frank, tel: 0207 629 8179, www.knightfrank.co.uk
CITYA.M. 2 JULY 2010
which can reduce stability. On Barbados,
you’re spoiled for choice when it comes to ARC EN CIEL, SOUFRIERE
established developments. As Price: £6.8m
Cunningham says, nobody’s buying Immaculately designed, this spectacular home on a World Heritage Site has breathtaking views of the
brown fields in this economic climate. Caribbean Sea and St Lucia’s iconic Pitons. Located in Soufriere, a sleepy fishing village, Arc En Ciel is close to
Buyers want to see the promised golf hot waterfalls, beautiful beaches for diving and snorkelling, exotic tropical gardens and mineral baths.
course in front of them. This traditionally Caribbean-style property features handmade furniture from Honduras.
Such an established reputation comes Contact: Savills, tel: 020 7016 3740, www.savills.com/abroad
at a premium. That said, prices have
dropped by 25 per cent from the highs of
2007. And for those willing to look a little
outside the highly developed areas near St
James on the central coast – a “lock up
and leave” condominium environment
where property costs from $1,000 per
square foot – there are rewards.
Barbados still lays claim to being the
“real Caribbean” and has a vibrant local
Bajan community. Architecture-wise there
are some colonial gems, and many of
these are to be found in the northern part
of the island, around Maynards and Port
St Charles. “There are lots of traditional
homes here, with nice land and decent
security. If you’re willing to sacrifice a sea
view for gorgeous vistas of gullies and
ravines in this more rugged part of the
island, you can get a lot more for your
money.” Think $7-15m for a mansion on
10-15 acres.
St Lucia is also a great spot to look at
now. Sacha Cole, of Savills, says: “St Lucia
is recovering more slowly than Barbados.
It is a good time to buy – we haven’t had
that huge adjustment people are waiting
for, but on the other hand, people are
much more willing to negotiate.” And, as
Cole says, investing in the Caribbean is TORTUGA, ST JAMES
always a fairly good idea. It’s that sun, Price: $4.55m
white beaches and year-round warmth – A beautiful three-bedroom home situated in the ever popular Turtleback Ridge, this home sits on over 31,000
it’s hard to beat. sq ft of cliff front land with spectacular views of the west coast, and is handily right in the path of cooling
breezes. A large patio with panoramic views out to the ocean, a pool, jacuzzi and one-bedroom cottage add
appeal to this magisterial property. Two offices make this a good refuge for a businessperson, too.
Contact: Aylesford International, tel: 020 7349 5100, www.aylesford.com
SUNDECK, ROYAL
WESTMORELAND
Price: $5.55m
A five-bedroom, six-bath-
room pile with 360-degree
views of the sea. A study,
pool, gym and superbly ele-
gant, sprawling outdoor ter-
racing combine with the
finest finishes to create a
dream home. The bathrooms
are finished with tiles
imported from Portugal,
while the kitchen represents
the finest of Scandinavian
design.
Contact: Knight Frank, tel:
0207 629 8179,
www.knightfrank.co.uk
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 28 Living | Second Homes CITYA.M. 2 JULY 2010

Cotswolds classics are always in demand

If you want an English country idyll, you
have to be proactive, discovers Zoe Strimpel
WINSOM MILL, NEAR
CIRENCESTER

P
ICTURE the idyllic country home
and the chances are you’ll conjure
up some quaint, mullioned stone
cottage in the Cotswolds. Far
beyond a fad, the Cotswolds are home to
what many consider England’s most
appealing rural villages. They ooze a well-
heeled ambiance but provide countryside
and an equestrian community that is sec-
ond to none, all within the golden two
hour radius of London.
As Craig Jordan, of buying agent
Property Vision, puts it: “A property in the
Cotswolds has become the must-have tro-
phy country home. The area offers a
London lifestyle in the country where peo-
ple are spoiled for choice.” Luxury brands
which you wouldn’t expect to get outside
of St James’s are tucked away in pretty bou-
tiques, and there is a plethora of organic
food outlets – celebrity chefs have brought
the culinary delights of Kensington and
Knightsbridge into the region.
Rob Jones-Davies, Cotswolds agent of
Middleton Advisors, says the main hurdle
for would-be home-owners is actually find-
ing a property to buy. Stock is very low and
has been for years. Over the last two years,
when other markets suffered, prices here
remained at their peak. “There has been
no shortage of buyers, particularly in the
£1.5m and up bracket,” says Jones-Davies.
“Post credit crunch, there may not be 15
people bidding for the same house, but
eight. There’s a lot of talk of gazumping
and people taking things off the market
before they’re listed, and agreeing sales on
the closed market.
Price: £2m
A unique chance to buy a 17th
century Coln Valley mill avail-
able for the first time in 56
years. The property has helpful
extras such as a pantry, boot
room, extensive attic, veg-
etable garden, paddocks, 530
yards of fishing in the Coln,
two outbuildings and private
formal and informal gardens.
The home sits in 8.4 acres of
land close to Cirencester
Contact: Knight Frank, tel:
01285 659771,
www.knightfrank.co.uk

HOW TO SECURE A HOUSE IN THE COTSWOLDS

Rob Jones-Davies, Cotswolds agent of
Middleton Advisors
“If you’re serious about getting on in the
Cotswolds, instruct a buying agent. Next, getting
on very well with the estate agent is absolutely
key. They have a long list of people wanting to
buy any given quality property so the better
your relationship the higher chance that they’ll
call you. Also, have funding in place (best of all
are cash buyers), along with a lawyer, so that
you’re ready to leap when something comes up.
When an agent calls you have to jump in the car
and head straight out. Finally, you have to be
proactive. Call every week. Estate agents in the
Cotswolds are extremely busy people and they
aren’t going to trawl through a long list of
would-be buyers when something comes up. You
need to be calling them.”
Particularly sought-after locations are
the market villages are Southrop, where
Kate Moss and Dom Jolly live; Stowe;
Morton-On-Marsh and Northleach: these
are on the Eastern edge of the Cotswolds
so as close to London as possible. It follows
that these are the most difficult towns in
which to secure a good property; though
as Jones-Davies says, there are no bargains
to be had anywhere in the area.
That said, it is possible to increase your
chances both of winning a bid for a prop-
erty and of getting more value for money
if you’re open to living outside the two-
hour-from-London radius. “For most peo-
ple, two hours from the capital is the
cut-off. So if you go outside the Chipping
Norton-Burford-Stowe triangle, you
should get more bang for your buck.”
And, following the stock-freeze brought
on by the triple whammy of half-term,
the ash cloud and the budget, Jones-
Davies expects more supply from
September, so prepare to leap

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CITYA.M. 2 JULY 2010 Living | Second Homes 29

STREAM COTTAGE,
LOWER KILCOTT
Price: £735,000
A beautifully restored period
Cotswold stone cottage in an
enchanting secluded valley, the four-
bedroom Stream Cottage has been
updated to very high standards
while as much of the original charac-
ter has been preserved. An ideal
weekend retreat/second home or a
lock-up-and-leave for an owner who
spends long periods away.
Contact: Knight Frank, tel: 01285
659771, www.knightfrank.co.uk

TAYLER’S FARM,
ALDSWORTH
Price: £1.75m
A fine Grade II Listed house in a
sought-after village of Aldsworth, 25
miles from Oxford, this graceful six-
bedroom home has a reception hall,
cloakroom, drawing room, dining
room, sitting room, conservatory and
extensive outbuildings including a
former malt-house and cellars.
Lovely gardens and grounds add to THE STUDIO, BOX
its appeal. Price: £2.75m
Contact: Savills, tel: 01285 627550, A classic four-bedroom Cotswold stone house with an attractive open pediment porch,
www.savills.co.uk sash windows to the front and casements to the rear. The home is arranged over three
floors with wonderful far-reaching views, and there is a double garage and garden, plus
an Aga in the kitchen for added country style.
Contact: Chesterton Humberts, tel: 01285 650955, www.chestertonhumberts.com

taylorwimpey.co.uk/more

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*Offers on selected plots only, subject to status and our normal terms and conditions. Prices correct at time of going to press. Computer generated image shows Altius and internal is indicative only.
 30 Living | Rentals
It’s bargain time for Square Mile renters
Early summer is the time to look for swanky
short-stay properties, writes Juliet Samuel
W
ITH prices still slightly down
from their 2008 heights, now is
the time to get into the London
rental market if you or your
company are looking for non-permanent
living space in the capital. Traditionally,
demand grows as the summer wears on
and with the property market picking up,
prices are only going to go one way.
Anyone looking to live close to the City
can find great value modern apartments
in the busy environs of Liverpool Street.
The area is full of plush developments
that offer City workers big windows,
wooden floors and smart, modern fur-
nishings for a very reasonable £350-£450
per week. And Charles Dowson of Square
Mile Property Management admits that
despite recovering from the 20 per cent
discounted lows of 2009, “we’re still a
good 10 per cent down on 2008”.
Similarly high-spec newly built apart-
ments are also available further south
towards Aldgate and the Docklands. If
you’re lucky, Aldgate offers the opportu-
nity to find something with stunning
views over the City or extensive roof ter-
races. Here and in Wapping some of the
most appealing spaces are in converted
old brick warehouses with features like
exposed beams and old-fashioned cranes
on the outside.
For a more traditional rental, City work-
ers should look to Mayfair and
Marylebone, where the prices are higher
but the properties tend more towards
grandiose detached houses going for any-
WEST INDIA QUAY
Price: £2.75m
This stunning two-bedroom, two-bathroom duplex apartment is situated in a stylish development close to West
India Quay DLR station – just four stops from Bank and one from Canary Wharf. The property boasts amazing
views of the Olympic site, O2 arena, the dock and side-views of Canary Wharf through the floor to ceiling windows.
The apartment is beautifully decorated with pale wooden floors, modern furniture and white walls to complement
the light, airy feel.
Contact: Chesterton Humberts, tel: 020 3040 8600
thing from £1,000 to £15,000 per week . As
such, the rental clientele tends to include
more foreign executives and managers on
corporate postings to the UK, many with
their families. The discounts are also not
as great as in other areas, with prices
down only about 5 per cent on 2008. For
that, though, you should expect some-
thing truly impressive such as a tradition-
al Mayfair mansion or large serviced
apartment. Some of these even have
jacuzzis and walk-in wardrobes.
HIGH DEMAND
For any outside space, expect to pay a
hefty premium ranging from 20 to 25 per
cent. The only exception to this is in new-
build developments such as those found
around the Aldgate area, some of which
have very small balconies built across
massive windows. Some of the highest-
end rentals to the west of the City also
offer 24-hour porters, gyms and spas for
which you might have to pay an extra 20
per cent. As ever with London rentals,
council tax and utilities are not included,
a factor to bear in mind if you’re looking
at an old-fashioned and energy-ineffi-
cient warehouse pad.
Either way, you should move soon. As
Robert Burwood of estate agent Hudsons
says: “Competition for rental property
becomes very, very high in the summer
and anyone looking to rent during that
period would be advised to get on with it
now.” Find a place soon and you can lock
in a discounted rental for the next year.
CITYA.M. 2 JULY 2010
CINNABAR WHARF
£1,500 per week
This stunning split-level three-bedroom three-bathroom penthouse apartment is set on the top two floors of a modern
24-hour portered development. The property boasts river views from the balcony and double-height floor-to-ceiling
windows in open plan reception room. The apartment has a outside space directly on to the river and also to the back
of the building. Located on Wapping high street, it’s a short walk to Wapping and Tower Hill underground stations, St
Katharine's Dock and Tower Bridge. Available furnished or unfurnished.
Contact: Knight Frank, tel: 020 7480 6848, www.knightfrank.com
HERTFORD STREET
£3,500 per week
This sumptuous and spacious
interior-designed apartment
on the ground and lower-
ground floor of a smart period
building has its own grand
street entrance. Close to Hyde
Park and Mayfair, the two-
bedroom property features
wood flooring, high ceilings
and a decked terrace. Forming
part of a five-star Park Lane
hotel, the apartment gives you
use of the gym, spa, room
service, resident members’
bar, five-days-a-week cleaning
and free wi-fi. Utilities, satel-
lite TV and council tax are
also included.
Contact: Chesterton Humberts,
tel: 020 7235 3530
DAVIES STREET
£2,000 per week
A wonderfully large top-floor apart-
ment in this five-story, period man-
sion block, situated in highly
fashionable Davies Street, Mayfair,
moments from Berkeley Square.
The apartment has a wonderful
quality of light throughout, particu-
larly in the large reception room
with its massive windows and
ample dining space. There are three
fully carpeted double bedrooms and
three modern bathrooms (two en-
suite) and the block is served by a
lift and porter.
Contact: BR Lets, tel: 020 7402
9866, www.brlets.co.uk
 CH TW AN
EL O NO
SE N U
Letting a first class apartment? A EW NC
&
CA OF ING
NA FIC
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Talk to a first class letting agent… W :
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Or go to www.brlets.co.uk for details of our other London offices London | Hong Kong | Singapore | Dubai
32 Living | Outdoor Living CITYA.M. 2 JULY 2010

Q&A Add some colour to

SELLING

Q.
Russell Hunt
MANAGING DIRECTOR
AT PROPERTY HUNT

Dear Russell, has the abolition

of home information packs
(Hips) helped the London prop-
erty market?
your
summer
A bit of brightness makes a difference
to a garden. By Jeremy Hazlehurst
A.
I think that the removal of Hips
has definitely been a positive thing
because people just don’t like put-
ting their hands in their pockets and pay-
ing for something up-front with no
guarantee of a sale.
Since they have been abolished, a lot of
sellers are able test the water and see what
interest there is in their property without
actually having to pay around £200 to get
the Hip completed.
Previously, an estate agent could not VITRA VEGETAL CHAIR IN
legally market a property until the Hip had BRICK RED £284, see
been set up. This put off sellers who want- www.vitra.com for stockists
ed to market their property quietly.
Now people don’t have to fully market
the property if they don’t want to and can
ask the estate agent to show round just a
few serious buyers and see what happens.
The estate agent also does not have to pro-
duce the full brochure now.
A lot of overseas sellers didn’t like paying
for HIPs upfront because they didn’t under-
stand the reasoning for it. Now that Hips GLOW COFFEE TABLE
are no longer required, they are keener to £149
sell their London properties.
Overall, their removal has freed up the www.dwell.co.uk
market and more vendors are inclined to
put their properties up for sale – there is
still a demand for good properties and
especially so in London.
This influx of properties also helps buyers
because they now have more to choose
from and can negotiate better whereas
before they didn’t have any choice.

LIGHTHOUSE OIL LAMP

Q.
Dear Russell, I am looking to
invest in property in London. £16.95
Should I be concerned about fluc- www.dwell.co.uk
tuating CGT rates?

A.
People have very short-term mem-
ories – it is only a few of years ago
that the capital gains tax (CGT)
rate was at 40 per cent. It then fell to 18
per cent under the Labour government and

The great barbecue debate

is now standing at 28 per cent for high-
income earners.
CGT goes up and down a lot of the time
and property investors should be looking at
the long-term investment horizon rather
than worrying too much about changes to
tax that may not last that long anyway.

If you are holding your investment prop-
erties for the long-term, then you do need
to consider what the CGT rate is, but only
at the time you want to sell. If you are a
sophisticated professional investor and
know what you are doing, then CGT is not
going to worry you too much because you
have a long-term goal and the current rate
may well have changed again by the time
you come to sell.
The amateur investor, however, will
probably be a bit more concerned and
become more cautious. But the rate hike
was not as big as people had feared, so
while there might have been some short-
term panic, you should remember that you
are looking to invest over a reasonably long
time-frame term, and the odds are that the
rate of CGT won’t make much difference to
the profit that you will make. And anyway,
with the rate changing regularly, it’s not
something you can predict and so it’s not
worth worrying about. Far more important
to your returns are the rental return, the
service charge and the problem of short
leases.
Russell Hunt is managing director of
Property Hunt, a search agent for London
and the Home Counties. @propertyhunting
www.property-hunt.co.uk
A
CCORDING to anthropologists,
in our hunter-gather days men
only ever prepared food in two
situations; at feasts for special
occasions, or making quick, simple
meals of meat cooked over open fires
when they were out on hunting trips. In
other words, they were either chefs, or
they barbecued. Sound familiar?
In this heat, nobody wants to come
over all Heston Blumenthal, they just
want a burger and a can of beer in the
back garden. But if you are considering
buying a barbie, there is one big ques-
tion: gas or charcoal? Gas is quick,
modern and efficient, while charcoal
is more primordial, with all that
smoke and fire flying about. But
which is best?
Colin Wint, the head chef at meaty
Belgravia restaurant Boisdale says: “With
the charcoal you get more of that smoky
flavour, but you’ve got to know your
equipment. It’s not an easy thing to do,
cooking over charcoal.” The results can
be the dreaded banger that’s burned on
the outside and cold inside, which is not
just unappetising, but potentially poi-
sonous. With a bit of skill you can avoid
that, says Wint. “You’ve got to cook on
different parts of the grill at different
times, and know when it’s hottest in dif-
ferent parts.” If you are a trained chef,
that is probably second nature, but for
the rest of us it’s easier said than done.
To help us amateurs, he recommends
getting a barbecue with an adjustable
grill so that you can move the food closer
to and further from the flames.
That might all make the alternative
sound appealing. Nobody wants to
spend their time at a barbecue faffing
about moving food backwards and for-
wards and worrying about listeria, espe-
cially after a few drinks. With gas you
don’t have any of those problems. Plus,
these days gas barbecues have side grills
for sauces and so on and thermometers
so you have more control, and you just
hit a button to light it – there is no mess-
ing about with matches and lighter fuel.
It sounds like the perfect modern reme-
dy. But it’s maybe not quite that simple.
“I used to have a gas barbecue for the
convenience,” says Robin Gill, chef at
City restaurant Sauterelle. “You can
turn it on and go, and you can do a bar-
becue for two with no preparation, and
with a charcoal one it takes so long to
get going that you don’t use it unless
you have people coming round.”
Gas is not always as convenient as it
seems; living in London you often have
to drive to pick up gas canisters, which
spoils the spontaneity. Plus, says Gill, “if
you are using herbs and oil then that
can get all over the barbecue and really
mess it up, with coals you can just bin it
at the end.” As for taste, he’s a charcoal
man. With coals the flavour is “10 times
better. The gas gives you an almost
chemical taste.”
For speed, gas is the way forward. But
if it’s all about the theatre of applying
fire to flesh and you don’t mind
working for your respect, then the cave-
man way is still the only alternative.
IN SHORT:
Gas: It’s fast and you can have a spur-of-
the-moment barbecue. The flavour
might not be quite as charcoal, though,
and cleaning the thing can be a pain. Go
for gas if convenience is what you are
after – but check that you will be able to
buy gas locally.
Charcoal: Takes longer to get the heat
going and takes more skill to cook,
because the heat is variable. Buy one
with a moveable grill. The coals can be
thrown away, so there’s no tiresome
cleaning. The flavour is better, and it’s
far more theatrical.
Jeremy Hazlehurst
 CITYA.M. 2 JULY 2010 Living | Outdoor Living 33

KANPAZAR GARDEN LIGHT

£580
www.gomodern.co.uk

FROU FROU WHITE PARASOL

£1,490
www.gomodern.co.uk

HEALS DECKCHAIR
£75
www.heals.co.uk

MEDIUM ORCHID POTS

£79
www.conranshop.co.uk

BEST CHARCOAL: SMOKEY

MOUNTAIN COOKER, 47CM
£350, www.weberbbq.co.uk

BEST GAS: GRILLTECH CEN-

TENARY 3 Around £600,
widely available
 Lifestyle
34
The classic,
lightweight
summer look
Linen can be trad
and contemporary,
says Timothy Barber
A
MONG the less heralded achieve-
ments of the Victorians was the
invention of the male linen suit –
heavy wool was hardly the materi-
al in which to go lording it over the
colonies. Still a summer staple, the linen
suit’s trump card – other than the fact
that you can wear it in hot weather with-
out melting – is its adaptability. Wear it
formally with a tie, smart-informally with
suede loafers (no socks please) for a sum-
mer evening out, or wear the jacket casu-
ally with shorts or jeans.
“You can dress it up or dress it down,”
says Frederick Willems, head designer at
Gieves & Hawkes. “In the true English fash-
ion you can wear it with a regimental tie,
lace-up shoes and a linen hanky in the
breast pocket – silk doesn’t really go with
the coarseness of the fibre – and look very
smart.” Top it off with a panama hat – very
on-trend this summer – and you’ve got that
classic just-off-to-Wimbledon look. Of
SALE
FURTHER REDUCTIONS
SAVILE ROW ‡ SLOANE SQUARE ‡ LIME STREET
www.gievesandhawkes.com
CITYA.M. 2 JULY 2010
| Men’s Fashion
1
2
3
course, the thing you can’t
avoid with linen is the creas-
ing, but Willems says that
doesn’t matter. “It’s the
nature of the fibre, and really
it adds to the aesthetic.”
Worn casually, that crum-
pled and lightweight effect falls
in line with the fashion for all things
unstructured says Mark Baxter, head
of menswear at Austin Reed. For a very
contemporary relaxed look, he recom-
mends mixing a navy or grey linen
4
jacket with a plain white t-shirt, crisp
chinos rolled up slightly and deck
7
shoes. “It’s a modern take on that
glamorous, 1950s Riviera style,” he says.
1 Linen suit by Brooks Brothers, £499,
www.brooksbrothers.com 2 Panama hat by
Marks & Spencer, £25, www.marksand-
spencer.com 3 Navy linen jacket by
Austin Reed, £180,
www.austinreed.co.uk 4 Pink silk linen
jacket by Marks & Spencer, £99, 6
www.marksandspencer.com 5 Linen
pocket square by Gieves & Hawkes, £20 5
in sale, www.gievesandhawkes.com 6 Suede Loafer by
John Lobb £465, www.johnlobb.com 7 Oatmeal linen suit
by Gieves & Hawkes, £590, www.gievesandhawkes.com
Put colour back 1
in your pocket
2
3
4
S
INCE men everywhere fell under the spell of Don Draper, a neat
white strip in the breast pocket has been a de rigueur suit acces-
sory. It helped too that the crisp lines and white on grey tones
suited fashion’s move towards sober asceticism. But hey, sum-
mer’s here, the sun’s out, and such sombre restraint is looking a bit,
dare we say it, boring.
It’s time to bring back colour. Chose a patterned silk square that
picks up on shades in your tie or shirt without being too direct a
match – it should look spontaneous rather than overly planned. For a
tidy look, go for a triangular fold. For something with a bit more 1 Ede & Ravenscroft, £25,
panache, lay the square out flat and pick it up in the centre, letting it www.edeandravenscroft.co.uk
hang down. Make a finger and thumb hole with your other hand and 2 Gives & Hawkes, £20 in sale,
www.gievesandhawkes.com
pull it through, then roughly fold it in half. Ease the square into your
breast pocket with the fold at the top, and ruffle it until it looks as 3 Ede & Ravenscroft, £39,
though you just whipped it out of the drawer and stuffed it breezily in www.edeandravenscroft.co.uk
your pocket on your way out the door. TB 4 Zilli, £60, www.zilli.fr
CITYA.M. 2 JULY 2010
Fright entertainment
Preview: GHOST STORIES
by Timothy Barber
J
EREMY DYSON and Andy Nyman
may just have created the Blair
Witch Project of theatre. Not simply
because their show, Ghost Stories, is
liable to turn even the most hardened hor-
ror nut into a gibbering wreck – though
by many accounts it will –  but because,
like Blair Witch, having been created on a
wing and a prayer by a couple of old mates
it has snowballed into an unlikely com-
mercial smash. After an initial run in
Liverpool earlier this year it broke box
office records at Hammersmith’s Lyric
Theatre in the spring and is now opening
in the West End.
People, it seems, just love to be scared.
And according to many who’ve seen it,
Ghost Stories really is scary. A paranormal
chiller – well, duh! – for over-16s only, it
apparently isn’t merely for attention-seek-
ing purposes that the publicity material
suggests those of a nervous disposition
should stay away.
“There are particular moments in the
performance that draw screams which
make you think you’ve psychologically
damaged someone,” chuckles Nyman,
who knows all about manipulating an
audience into open-mouthed submission,
having spent the past few years as Derren
Brown’s co-writer and director. He’s also
Lifestyle | Arts 35
Evergreen hero says
good-bye in comic style
Jeremy Dyson, left,
and Andy Nyman.
The cartoon ogre’s final outing
is not the tired pastiche it might
have been, says Rhys Griffiths
Film
SHREK FOREVER AFTER
Cert: U
hhhii
THE fourth and final instalment of the popular Shrek franchise
sees everyone’s favourite Scottish cartoon ogre return for what’s
supposedly the final chapter (predictably upgraded to 3D). Like
many who saw the third installment, Shrek (voiced as ever by Mike
Myers) has grown pretty bored. Bogged down by both family life
(lest we forget, he and Fiona now have a brood of little Shreks) and
his Far Far Away celebrity status, he’s in the midst of a midlife cri-
sis, longing for the hang up-free days of his life as an outcast. Enter
villainous Rumpelstiltskin, with whom he strikes an ill-conceived
magical deal – one day as his old
reclusive self in return for a day
an accomplished actor and the star of of the Woman in Black’s Victorian setting from Shrek’s past. He finds
Ghost Stories. Dyson, who co-wrote and
directed the show with Nyman, is best
and slow-building tension, Ghost Stories is
a contemporary-set, 70-minute adrenaline
himself plunged into a paral-
lel universe where
known as the fourth, non-acting member rush intended to have audiences leaping Rumpelstiltskin rules the
of the League of Gentlemen, the group out of their seats from the get go. land with an army of witch-
who created some of the creepiest comedy “We want to give the audience an es and Shrek’s friends
ever to hit TV screens. The pair met as absolute roller coaster ride of big screams don’t know him – and he’s
teenagers on a kids’ activity holiday and and big laughs from start to finish, so they only got a day to sort it out.
bonded over their love of horror – “we never know what’s going to hit them,” The Shrek franchise’s
shared a dormitory so we told horror sto- says Nyman, who says the show combines trump card ahs always
ries and did a mock séance to scare every- the visceral rush and entertainment of been its inexhaustible array
one,” laughs Dyson – but it’s taken them films like Evil Dead with the eerie, deeply of wonderful characters,
30 years to get round to working sinister qualities of Ringu or The Exorcist. and the parallel universe
together. But can you really recreate that on stage as plot allows a fun reinven-
successfully as you can on film? Even tion of the cast. We
HAUNTED HORROR more so, says Nyman. encounter Fiona as a
“The mission we set ourselves “A lot of the history of horror stems Boudicca-style she-
was to create the show we’d from theatre, and the fact that it’s warrior and a Puss
love to see ourselves,” Dyson happening live, in front of your In Boots who’s
explains. “Being scared is a eyes, means there’s no safety let himself go.
great form of entertain- net,” he says. “I love that The film can’t
ment, though we had no people come thinking compete with
idea until the first ‘how scary can it be?’, the anarchic
night whether we’d then we frighten them originality of
pull that off.” out of their wits.” the first two
Of course, the West He adds with an evil Shrek features,
End already has a chuckle: “It’s been a but it’s still
famously scary ghost great surprise to get mes- funny and just
show, the long-running sages from people saying about avoids spi-
Woman in Black. But Ghost we gave them night- raling into a pas-
Stories, which features mares. That when we tiche of itself. Kids
three separate tales of know it’s really worked.” will still have a
haunted horror linked by Previewing now at the Duchess hoot, and parents
Nyman’s parasychologist Theatre, St Martin’s Lane, and run- will be relieved it
lecturer, is a very different ning from 13 July until 7 November. isn’t the tired bow-
(demonic) beast. Instead www.ghoststoriestheshow.co.uk. out it could have been.
THE WORLD CUP
AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72” screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
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EC2M 4NR 020 7283 1763
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WWW.BOISDALE.CO.UK
 36 Lifestyle | TV& Games CITYA.M. 2 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Animal 24:7
7.30pm Nigel Slater’s Simple
Suppers; BBC News
8pm Inspector George Gently
9.30pm Outnumbered
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Friday Night
with Jonathan Ross
11.35pm The National Lottery
Friday Night Draws
11.45pm Match of the Day:
2010 FIFA World Cup
12.50am Sign Zone: An African
Journey with Jonathan Dimbleby
1.50am Welcome to Lagos 2.50am-
6am BBC News
5.50pm Wimbledon 2010:
Further coverage of men’s
singles semi-finals day.
8pm Today at Wimbledon:
Highlights of the men’s singles
semi-finals.
9pm Gardeners’ World Special:
The difficulties faced by coastal
gardeners.
10pm Grumpy Old Men: The
celebrities discuss growing old.
Last in the series.
10.30pm Newsnight; Weather
11pm Glastonbury 2010: The
best moments of this year’s
festival.
1am FILM Babylon: Drama, starring
Brinsley Forde and Karl Howman.
1980. 2.35am-6am Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five
TV PICK
7pm World Cup Live: Uruguay 7pm Channel 4 News 7.30pm Zoo Days: Five News
v Ghana (Kick-off 7.30pm). 7.30pm Unreported World Update
Coverage of the second quarter- 8pm A Place in the Sun: Home 8pm Extraordinary People: The
final encounter at Soccer City or Away Tiniest Girl in the World: The
in Johannesburg, South Africa. 9pm Big Brother story of two-year-old
9.30pm James Corden’s World 10pm The IT Crowd primordial dwarf Charlotte;
Cup Live: With guest Denise 10.35pm Big Brother Five News at 9
Van Outen. 11.05pm CHOICE Stand Up for 9pm CHOICE The Mentalist
10pm ITV News at Ten the Week 10pm CSI: NY FRIDAY NIGHT WITH JONATHAN
10.30pm London News 11.55pm Music on 4: The 10.55pm Grey’s Anatomy ROSS BBC1, 10.35PM
10.35pm FILM DOA: Dead or Album Chart Show: Kelis 11.55pm Cops in Crisis The host welcomes Oscar-winning actor
Alive: Premiere. Adventure, Special 12.10am SuperCasino Robin Williams, model Elle Macpherson
starring Jaime Pressly. 2006. 12.25am Music on 4: 4Play: 4.05am Motorsport Mundial and stand-up comedian Tim Minchin.
12.10am The Zone; ITV News Micachu 4.30am Nick’s Quest 4.55am Music is provided by Mark Ronson.
Headlines 12.45am Big Brother: Live County Secrets 5.10am The New
2.25am Touching Evil 3.10am- 4am This Week’s 4Music Top 20 Tomorrow 5.35am-6am Michaela’s
5.30am ITV Nightscreen 5.50am-6.35am Countdown Wild Challenge

SKY SPORTS 1 2.30am Ladies European Tour LIVING E4 3am Extreme Engineering
SATELLITE & CABLE

7pm Live Twenty20 Cup
Cricket 10pm World Cup
Report 10.30pm Football’s
Greatest 11pm Time of Our
Lives 12am Football’s Greatest
12.30am Women’s
International Twenty20
Cricket 1.30am Twenty20 Cup
Cricket 2.30am Football’s
Greatest 3am Friday Fight
Night 5am World Sport
5.30am-6am Football’s
Greatest
SKY SPORTS 2
7pm IRB Rugby Sevens 10pm
Live Friday Fight Night 12am
NFL: Total Access 1am IRB
Rugby Sevens 4am Ocean Ride
4.30am IEX Magazine 5am-
6am Tight Lines
SKY SPORTS 3
7pm Live PGA Tour Golf 11pm
Ladies European Tour Golf
12am European Tour Golf
1.30am Golfing World
Golf 3.30am European Tour
Golf 5am ATP Tour Uncovered
5.30am-6am Ocean Ride
BRITISH EUROSPORT
7pm Eurosport Flash 7.05pm
Soccer City Flash 7.15pm
Strongest Man. The Irish
Strongman Champions League
event. 8.15pm MotoGP
10.15pm Eurosport Flash
10.20pm Soccer City 10.50pm
Eurosport Flash 10.55pm Ten
Pin Bowling 11.55pm-12.25am
Soccer City
ESPN
5.30pm Australian Rules
Football 8pm NBA Classics:
Vintage basketball action from
North America. 10pm The
Ultimate Fighter 11pm South
Africa Nightly 11.30pm
Ultimate Fighting
Championship 3.30am UFC All
Access 4am-6am Live Friday
Fight Night
7pm Four Weddings 8pm 7pm Hollyoaks 7.30pm Friends 3.50am Raging Planet
Passport Patrol 9pm Criminal 9pm Gok’s Fashion Fix 10pm 4.40am World War Two in HD
Minds 10pm CSI: Miami 11pm Supersize vs Superskinny Colour 5.30am-6am How Does
Criminal Minds 12am CSI: 11.05pm Big Brother’s Big That Work?
Crime Scene Investigation Mouth 12.10am-6am Big
Brother: Live
DISCOVERY HOME & STAND UP FOR THE WEEK
2am Exposed: Paris Hilton 3am
The Fresh Prince of Bel-Air HEALTH CHANNEL4, 11.05PM
3.50am Maury 4.40am
HISTORY 7pm Baby Tales 7.30pm Babes Patrick Kielty hosts the satirical comedy
7pm How the Earth Was Made in the Wood 8pm Jon and Kate show from the Koko Club in Camden,
Nothing to Declare 5.30am-
8pm UFO Files 9pm How Plus 8 9pm Transplant Stories London, with Rich Hall, Jack Whitehall,
6am Home Shopping
Britain Was Built 10pm The 10pm Last Chance Surgery Andi Osho and Kevin Bridges.
Cosmos: A Beginner’s Guide 11pm Mystery Diagnosis 12am
BBC THREE
7pm Great Movie Mistakes 11pm Goering: A Career 12am Transplant Stories 1am Last
UFO Files 1am How the Earth Chance Surgery 2am Mystery
7.15pm Doctor Who 9pm
FILM Reign of Fire 2001. Was Made 2am Egypt 3am Diagnosis 3am Jon and Kate
George Best Remembered Plus 8 4am Baby Tales 5am-
10.35pm Special 1 TV
4am-5am Decoding the Past 6am Mum’s the Word
10.40pm Russell Howard Live
11.55pm Family Guy 12.35am DISCOVERY SKY1
Lee Nelson’s Well Good Show 8pm How Do They Do It? 7pm The Simpsons 8pm
1.05am Mongrels 1.35am 8.30pm How It’s Made 9pm Missing Children: Lorraine Kelly
Special 1 TV 1.40am Match of Mystery Investigator 10pm Investigates 9pm Bones 11pm THE MENTALIST
the Day: 2010 FIFA World Cup Iceman: The Lewis Gordon Lie to Me 12am Oops TV 1am FIVE, 9PM
3.20am Lee Nelson’s Well Good Pugh Story 11pm Battlefield The Real World 1.50am Road Jane crosses swords with a cult leader
Show 3.50am Mongrels Mysteries 12am Deadliest Wars 3.30am 24 4.20am Tru while looking into the murder of
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Most Shocking Moments Chris Barrie’s Massive Engines Smarter Than a 10 Year Old? heir Xander Harrington.

COFFEE BREAK
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QUICK CROSSWORD
    

SUDOKU KAKURO
7 35 8 19 28 11 16 
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row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 5 34
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above or to the left of it. 11 20 41 10
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O L 17 Skilfulness in
deception (7)
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 Punter
38 CITYA.M. 2 JULY 2010

| Racing

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS WEEKEND’S RACING ACTION

Cecil’s Twice Over looks good to

Eclipse his Sandown rivals at 2/1
T
HERE is certainly no Sea The Stars in rock solid. additional two furlongs. In fact, she has
tomorrow’s Coral Eclipse field, but The key with Twice Over is that he been beaten on two of her last three
the £500,000 added Group 1 contest seems to be improving with age. Yes, he attempts at this trip and may just lack the
has still attracted last year’s was beaten out of sight in this race by Sea required speed at the business end.
Champion Stakes winner TWICE OVER The Stars 12 months ago, but he has Therefore, a bigger threat to our selection
and Dubai Sheema Classic winner Dar Re improved dramatically since then. He may well be his owner’s ‘second string’,
Mi in what looks set to be an intriguing rounded off last season’s campaign with Zacinto, who is stepping up to 10 furlongs
battle of both generation and sex. wins at Doncaster and Goodwood before for the first time. He has always threatened
Twice Over was last seen in action at going on to land the Champion Stakes over to be a Group 1 performer and the step up
Royal Ascot when beaten just half a length this distance at Newmarket. His final run in trip may be just what he needs.
by Byword in the Prince of Wales’s Stakes. was arguably his most impressive when However, the best of his form is well
There are plenty of pundits who feel that finishing third to Zenyatta in the Breeders below anything that Twice Over has
jockey Tom Queally gave the son of Cup Classic in November. The Prince of achieved and he is plenty short enough at
Observatory too much to do and that he Wales’s would have blown the cobwebs 7/2 with William Hill. The only other one
would have added another Group 1 win to away and he is fancied to land the prize at worthy of a mention is Aidan O’Brien’s
his CV if ridden closer to the pace. I’m not 2/1 with Paddy Power Viscount Nelson. He will love the trip and
entirely convinced about that, but still feel John Gosden’s Dar Re Mi is respected, ground, but may not be good enough to
that the form (even without the victory) is but all of her best form seems to be over an win a race of this quality.
Over at Haydock and BARSHIBA makes
plenty of appeal in the Bet365 Lancashire
Oaks at 2.50pm. David Elsworth’s gutsy six-
year-old is blind in one eye, but that does-

I GET
n’t stop her trying her heart out. She won
this race last year and ran a respectable
third to Harbinger in the Group 2
Hardwicke Stakes at Royal Ascot. This does-
n’t look like the greatest renewal and on

THREE £10
the quick ground she loves, I fancy her to
outclass this field.
For those of you that can’t wait until
tomorrow there are a couple of decent

BETS FREE.
looking bets at Sandown this afternoon.
The Hannon stable run a couple of new-
comers in the maiden at 3.25pm and the
one to back is CHAIN LIGHTNING. He does-
n’t have the best draw, but apparently he is
pretty smart and can add to the stable’s
EXCLUSIVE TO NEW TELEPHONE/ONLINE CUSTOMERS* fine two-year-old record this season. I’ll also Twice Over ridden by POINTERS...
Simply stake £10 today and we will give you be having a few quid on Sir Michael Tom Queally after
Stoute’s VERDANT in the 4.35pm. He won winning last year CHAIN LIGHTNING 3.25pm Sandown (today)
3x£10 Free Bets. Quote WORLD30 on his seasonal reappearance over course Picture: ACTION VERDANT 4.35pm Sandown (today)
and distance and could still be well-handi- IMAGES BARSHIBA 2.50pm Haydock (tomorrow)
capped. TWICE OVER 3.10pm Sandown (tomorrow)
HOLLAND v BRAZIL
SANDOWN PARK TOMORROW live on Channel 4
Today, Kick-Off 3.00pm, Live on ITV.
16/5 HOLLAND 9/4 DRAW BRAZIL 10/11 3.10 CORAL-ECLIPSE (GROUP 1) (1) 1m 2f 7y £283,850 GOING: GOOD supplied by RACING POST
1 0112-0 MAWATHEEQ (17) (D) 5 9-7 R Hills
CORRECT SCORE DOUBLE RESULT FIRST GOALSCORER [4] M Tregoning Hamdan Al Maktoum
Holland Score Brazil Holland Holland 13/2 Fabiano 9/2 2 1157-18 SRI PUTRA (37) (C) (D) 4 9-7 P Robinson
8/1 1-0 5/1 Holland Draw 16/1 Van Persie 11/2 [1] M Jarvis H R H Sultan Ahmad Shah
18/1 2-0 7/1 Holland Brazil 28/1 Robinho 6/1 3 1113-02 TWICE OVER (17) (D) 5 9-7 T Queally
12/1 2-1 15/2 Draw Holland 15/2 Huntelaar 15/2 [5] H Cecil K Abdulla
50/1 3-0 14/1 Kaka 8/1 4 1120-94 ZACINTO (18) (C) 4 9-7 R L Moore
33/1 3-1 14/1 Draw Draw 7/2
Robben 8/1 [6] Sir M Stoute K Abdulla
50/1 3-2 33/1 Draw Brazil 7/2 Kuyt 9/1 5 111d53-1 DAR RE MI (98) (CD) 5 9-4 W Buick
15/2 0-0 15/2 Brazil Holland 40/1 Elano 10/1 [2] J Gosden Lord Lloyd-Webber
11/2 1-1 11/2 Brazil Draw 14/1 No G/scorer 15/2 6 28-2035 VISCOUNT NELSON [VH] (27) 3 8-10 J Murtagh
16/1 2-2 16/1 Brazil Brazil 21/10 EACH WAY ONE-THIRD THE ODDS [3] A O’Brien Ire Mrs John Magnier/Mrs David Nagle
A PLACE 1, 2, 3, 4, 5. Own goals
Other scores on request. Bets void if match not completed. don’t count. Others on request. S.P. F’CAST: 2 Twice Over, 11-4 Dar Re Mi, 9-2 Zacinto, 6 Mawatheeq, 6 Viscount Nelson, 33 Sri Putra.
All football prices quoted are phone/net, different odds may apply in retail. Extra time does not count.

10/1 VAN PERSIE TO SCORE FIRST

INSIDER
the

TODAY’S MATCH AND HOLLAND TO WIN oddschecker.com

WINNERS 13/2 FABIANO TO SCORE FIRST
AND BRAZIL TO WIN
All the latest odds and £100s of bookie freebets

B
ack in the day I used to visit
one or two fashionable clubs,
including some in Manchester.
However, it’s not just the name
that is drawing me to HACIENDA
(5%) in the big Heritage Handicap
0800 44 40 40 williamhill.com over one mile at Sandown (2.35)
tomorrow. This son of Kheleyf looks
*3x Free £10 bets are win singles and will be added to your account on settlement of first bet. Free Bet must be on a different event to the initial stake. Free Bet
like a typical improver from the Mark
stake not included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices subject to fluctuation. William Hill rules apply. Johnston yard and can win what on
Over 18s only. Prices correct as at 3.00pm yesterday. FOR ADVICE & INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK paper looks a highly competitive
affair for the classic generation.
Greyfriarschorista ran a blinder in
the Britannia Stakes at Royal Ascot
to finish third just behind Ransom
Note but this colt has been put up
another 5lbs for that run and on my
reckoning is now in the grip of the
handicapper.
BOULD MOVER (4%) looks to
have found an opportunity to beat
his elders in the Coral Charge Stakes
on the same Sandown card at 2pm.
This is another animal that ran well
at Royal Ascot but unlike
Greyfriarschorista I think this should
be an easier opportunity for Graham
Gibbons’ mount to ease his way into
the winners enclosure.
I often take a second look at a
Peter Winkworth runner ridden by
Jim Crowley and they pair up in the
4.50pm at Sandown tomorrow. OIL
STRIKE (3%) looks to have a fair
opportunity and his running style
might be well suited to the course.
CITYA.M. 2 JULY 2010
FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT THIS WEEKEND’S
QUARTER FINALS
Robinho celebrates with
Luis Fabiano after scoring
for Brazil against Chile
Picture: ACTION
IMAGES
Samba Boys have the
edge against Holland
HOLLAND
BRAZIL
TODAY – 3.00PM ITV1
BRAZIL have been unfamiliarly clinical so
far in this tournament. They just did
enough to beat North Korea, before
impressing against Ivory Coast in the sec-
ond group game. The Portugal match was
a non-event, but Dunga’s side showed
their true mettle against Chile on Monday
night. That was their best performance so
far and the reason why they are now a
best-priced 5/2 with William Hill and
Paddy Power to lift the trophy.
This is not a typical Brazilian side, but it
is fair to say that they will not be playing
against a typical Dutch side this after-
noon. Holland have won all four games
ARGENTINA
GERMANY
TOMORROW – 3.00PM BBC 1
ARGENTINA must feel like they’ve been
here before. In 2006 they defeated Mexico
in the second round, only to lose on penal-
ties against the Germans in the quarter-
final. They have been very impressive
under the stewardship of Diego Maradona
this time around and their team spirit is
plain for all to see. Gonzalo Higuain,
Carlos Tevez and Lionel Messi have all
Punter | Football
during this competition, matching their
best ever run at a World Cup finals. They
haven’t ripped any teams apart as yet and
it’s unlikely that they will return to the
halcyon days of Total Football against the
Samba Boys. These are two well-disci-
plined sides that are difficult to break
down and one moment of magic could be
enough to win it.
It looks a very open year and whoever
wins this game will feel confident of
defeating either Uruguay or Ghana to
reach the final. Brazil are starting to hit
form at the right time and they are worth
backing at 19/20 with William Hill and
Paddy Power to win the match in 90 min-
utes. Holland will make it difficult for
them and I’ve been impressed with their
backline, but Luis Fabiano, Kaka and the
rejuvenated Robinho should have enough
to be able to pierce them at some stage.
These sides haven’t met since 1999, but
interestingly four of the last five contests
have been draws. This could go the dis-
played magnificently, despite the latter
failing to score a goal as yet.
Joachim Low’s young side easily dis-
patched England last time and they have
shown that they are a team going places.
Bastian Schweinsteiger and Mesut Ozil
have stood out on the creative side, while
Miroslav Klose, Lukas Podolski and Thomas
Muller have scored seven goals between
them. Similarly to Argentina, their main
strength is their attackers, which means
that this game could be quite open.
Both sides play a decent passing game
and it’s unlikely that Germany will adopt a
defensive strategy similar to the one
Greece used when playing Maradona’s
side. Yes, they will try to nullify the threat
of Messi, which almost every country has
39
tance, just like their semi-final in 1998
which Brazil eventually won 4-2 on penal-
ties after a 1-1 draw. However, I can see this
being Bert Van Marwijk’s side’s first defeat
in 23 matches. They’ve been on a tremen-
dous run, but not as good as the Brazilians
who have only lost one of their last 30
games.
I have been advising selling goals with
Sporting Index in the majority of matches
at this World Cup and I see no reason in
changing that philosophy for this game.
Both managers are cautious and will be
unwilling to throw too many players for-
ward at an early stage. Brazil just have
slightly more quality, though, so I’ll also
be backing them to sneak a 1-0 win at 6/1
on Betdaq.
POINTERS...
Brazil to win at 19/20 with Hills and Paddy Power
Brazil to win 1-0 at 6/1 on Betdaq
Sell total goals at 2.3 with Sporting Index
done to date, but their backline is far from
quick. Per Mertesacker always looks
unsure and it’s quite surprising that
they’ve only conceded two goals so far at
this tournament.
I can see this game being close but I
think La Albiceleste just have the edge and
I’ll be backing them at 11/8 with William
Hill. Both defences have their weaknesses
so I can see both conceding. I will therefore
have a small bet on the 2-1 Argentina win
at 9/1 on Betdaq.
POINTERS...
Argentina to win at 11/8 with William Hill
Argentina to win 2-1 at 9/1 on Betdaq
Buy total goals at 2.6 with Sporting Index
 Sport
40 CITYA.M. 2 JULY 2010

Results
CRICKET
Friends Provident T20 - South Division: Hampshire v
Glamorgan (The Rose Bowl); Hampshire 193-5 (J H K
Adams 100no) v Glamorgan 145-9. Hampshire (2pts) beat
Evergreen
Kinane still
Glamorgan by 54 runs.
LV County Championship - Division One: Durham v
Warwickshire (Emirates Durham ICG); Durham 288 (I D
Blackwell 86) and 289 (M J Di Venuto 92, M D Stoneman
60, Imran Tahir 6-69) v Warwickshire 224 (R Clarke 68, C D
Thorp 4-54) and 134(S J Harmison 7-29). Durham (21pts)
beat Warwickshire (4pts) by 219 runs. Yorkshire v
Lancashire (Old Trafford); Yorkshire 447 (A Lyth 100, J A

living life in
Rudolph 83, A McGrath 61, G Chapple 4-75) and 215-7 dec.
(A McGrath 57, S C Kerrigan 4-77) v Lancashire 358 (K W
Hogg 88, P J Horton 63, A U Rashid 5-90, Azeem Rafiq 4-
90) and 190-7 (S J Croft 85no). Lancashire (7pts) drew
with Yorkshire (8pts).
Division Two: Surrey v Derbyshire (Chesterfield); Surrey 391
(M R Ramprakash 99, U Afzaal 73, S J Walters 53, T D

the fast lane

Groenewald 5-86, P S Jones 4-65) and 253 v Derbyshire
237 (W L Madsen 109, L J Goddard 67, T E Linley 4-13) and
365 (W L Madsen 105, G T Park 54, C T Tremlett 4-94).
Surrey (23pts) beat Derbyshire (4pts) by 42 runs.
ICC World Cricket League - Division One: Canada v
Afghanistan (Voorburg); Canada 257-7 (A Bagai 77) v
Afghanistan 258-3 ( Nawroz Mangal 67no, Mohammad
Shahzad 57, Noor Ali 50).Afghanistan (2pts) beat Canada by
7 wickets. Holland v Scotland (Amstelveen); Holland 234-6
(T L W Cooper 91, B Zuiderent 51no) v Scotland 235-9 (M
M Iqbal 63). Scotland (2pts) beat Holland by one wicket.
Kenya v Ireland (Rotterdam); Kenya 163 v Ireland 164-3 (P
Jockey tells Jon Couch about a busy life after
R Stirling 89, A R Cusack 59no). Ireland (2pts) beat Kenya
by 7 wickets. retiring, and staying in touch with Sea The Stars
Tour Match: India A v England Lions (Grace Road); India A
254 (C A Pujara 73) v England Lions 255-5 (D I Stevens
58no). England Lions beat India A by 5 wickets.

H
E may have hung up his saddle
Women’s Twenty20 Match: New Zealand Women v England
Women (The Rose Bowl); New Zealand Women 147-8 (S W after a glittering 34-year career,
Bates 68) v England Women 143-8 (S J S J Taylor 73). New but there’s no such thing as an
Zealand Women beat England Women by 4 runs. easy life if you’re Mick Kinane.
TENNIS Since announcing his international
AELT CHAMPIONSHIPS (Wimbledon, England)—W Women’s retirement last December, the 51-year-
Singles Semi-final: (1) S Williams (USA) bt P Kvitova (Cze) 7- old has been managing his own stud
6 (7-5) 6-2, (21) V Zvonareva (Rus) bt T Pironkova (Bul) 3-6 farm in his native Ireland, is now Flat
6-3 6-2.
Ambassador for Horseracing Ireland
2010, and is even still riding a couple
TODAY’S DIARY of times a week back home for trainer
World Cup Quarter-Final John Oxx.
Uruguay v Ghana (7.30)............................................................................................ But despite his workload, the 13-
Holland v Brazil (3pm) ..............................................................................................
time champion jockey of Ireland is set
CRICKET for an emotional return to one of
Friends Provident T20 - South Division: Gloucestershire v most-loved venues, Sandown
Glamorgan (Bristol), Sussex v Middlesex (Hove), Surrey v Park, this weekend, to renew
Somerset (Brit Insurance Oval), Kent v Hampshire
(Canterbury). his love affair with Group
Friends Provident T20 - North Division: Northamptonshire v
One Coral-Eclipse.
Yorkshire (Northampton), Durham v Warwickshire (Emirates Kinane won the Eclipse
Durham ICG), Derbyshire v Leicestershire (Chesterfield). four times in all, including
Women’s Twenty20 Match: England Women v New his historic victory aboard
Zealand Women (Hove). legendary galloper Sea The
Tour Match: India A v West Indies A (Grace Road), Essex v Stars 12 months ago, which
Pakistan (Chelmsford). ended his career on an ulti-
TENNIS mate high.
Now named as an
The All England Lawn Tennis Championships, Wimbledon
(Wimbledon, England). Ambassador for this year’s
race, Kinane is delighted
RUGBY LEAGUE to return to the Surrey
engage Super League (8pm):: Salford v Harlequins RL. course, but insists he
won’t miss the cut and
SPORTS EDITOR JON COUCH thrust on the track.
email sport@cityam.com “I’m not missing it at all, I
don’t have time to miss it,” Kinane
admitted.
“I’m delighted to be back because
the Eclipse is a race close to my heart.
My first win, for Sheikh Mohammad,
in Opera House in 1993, was at a suc-
cessful time for me as I was just burst-
ing on the scene.
“The Eclipse is the ideal race for the
three-year-olds to pit their wits against
the older horses and it can be extreme-
ly valuable to them if they win.”
PERFECT RELATIONSHIP
Ironically, after his 34 years in the sad-
dle, it was nine races at the very end of
his career, aboard Sea The Stars, for
which Kinane will be best remem-
bered.
The unbeaten colt was
retired himself last October
after becoming the only
horse ever to win the 2,000
Guineas, Epsom Derby and
Prix de I’Arc de Triomphe in
the same year.
But even though
horse and jockey have Kinane won the Coral-Eclipse on Sea The Stars last year. Picture: ACTION IMAGES
gone separate ways,
Kinane is determined most,” Kinane added. “I send his yard “I became very involved with him at
to stay in touch. mails every now and again, just to see a young age and we stuck together
“Of all the horses I have how he’s doing, and I went to see him right down the line.
worked with, he is the one I in late May for a television documen- “It was the perfect relationship to
became attached to the tary. He looks fantastic. end my career on a high.”
CITYA.M. 2 JULY 2010
Murray: Hard
court won’t
favour Nadal
WIMBLEDON
2010
BY FRANK DALLERES
ANDY MURRAY has brushed off fears
that a sun-baked Centre Court will
help his opponent Rafael Nadal as he
seeks to become the first British man
to reach the Wimbledon final since
1938.
Murray is already the underdog for
this afternoon’s semi-final against
the Spaniard, who has reclaimed the
world No1 spot following an out-
standing spring and is on a 12-match
winning streak at the All England
Club.
But the Scot has rejected sugges-
tions that a surface hardened by a
Williams serves up record
ace tally in battling victory
WIMBLEDON
2010
BY FRANK DALLERES
DEFENDING champion Serena
Williams is hoping to find an extra
gear for her sixth Wimbledon final
after being pushed hard in yester-
day’s last-four tussle with Czech
upstart Petra Kvitova.
After being broken for the first
time in this year’s tournament,
Williams drew on her considerable
battling qualities to force a tie-
break that proved to be a turning
point in her 7-6 (7-5), 6-2 victory.
The win set up a final against
Russia’s Vera Zvonareva, the 21st
seed, and the American is targeting
an improved performance as she
strives for her fourth singles title at
the All England Club.
“I’m still hoping to peak in the
final,” said Williams. “Hopefully I
Zvonareva fights
back to reach first Grand Slam final
WIMBLEDON
2010
BY FRANK DALLERES
RUSSIA’S Vera Zvonareva has vowed
not to even contemplate the odds of
beating defending champion
Serena Williams in Sunday’s final.
And that is probably just as well,
because punters are unlikely to be
flocking to back the 21st seed
against the world No1, despite a
gritty comeback win over Tsvetana
heatwave and almost two weeks of
tennis will behave similarly to the
clay courts that Nadal bestrides like a
colossus.
“I definitely wouldn’t describe the
courts here as similar to clay; they’re
more like a hard court because the
ball’s bouncing pretty high,” said the
British No1.
“I think it’s a pretty fair court for
both of us. Hopefully I can play well
because when I have played him on
hard courts before, I’ve always felt
like I’ve had chances against him. If I
serve well and play like I have been,
I’ve got a chance.”
Murray, 23, has cause for optimism,
having beaten Nadal in their most
recent meeting, and dropped fewer
sets at this year’s tournament.
can serve even better than I did
today and be more consistent off
the ground. On paper it looks like I
should win but I have played Vera
several times and she is a really
good player and obviously a fighter.
“The biggest thing for me is to
stay positive and not put too much
pressure on myself.”
Williams’ formidable serve has
earned her 80 aces already in this
year’s competition – an unprece-
dented tally in
the women’s
game – but
deserted her
in patches
a g a i n s t
Kvitova, allow-
ing the world
No62 to
snatch a
shock break
and go 4-2
ahead.
Pironkova.
Zvonareva had to recover from
losing the first set before beating
the unseeded Bulgarian 3-6, 6-3, 6-2
yesterday to reach her first ever
Grand Slam final.
But she knows she will be the
clear outsider when she steps out
onto Centre Court to face the
imposing figure of 12-time Grand
Slam winner Williams.
“It’s one of my dreams to be play-
ing in the finals of Wimbledon,”
said the former world No5.
Sport | Tennis 41
Murray has
dropped fewer sets
than Nadal in this
year’s tournament.
Picture: ACTION
IMAGES
HEAD TO HEAD | MURRAY V NADAL
MURRAY V NADAL
23 Age 24
14 Titles 40
0 Grand Slams 7
£8m Prize money £21m
3 Head-to-head 7
4 World ranking 1
On the other hand the Mallorcan 2008 US Open.
won the title on his last visit to SW19 “He’s obviously a very tough player
and, having missed last year through on any surface but he plays great ten- ORDER OF PLAY | TODAY
injury, has shown customary grit to nis here,” Murray added. “He will def-
reach the last four this time. initely be the favourite for the match CENTRE COURT
So while the Scot accepts he is sec- with his results here the last few
ond favourite, he is refusing to budge years. Psychologically I need to believe T Berdych (Cze) (12) v N Djokovic (Ser) (3)
from his conviction he can repeat his that I can win the match. That’s the A Murray (GBR) (4) v R Nadal (Esp) (2)
semi-final victory over Nadal at the most important thing.”
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World No1 Williams levelled at Celebrating the
the earliest opportunity and, hav-
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immediately opened up a 4-0 lead
that proved decisive.
Kvitova refused to roll over in the
World Cup 2010
second set, however, saving break
point in her first service game and
winning her second to love, but
Williams finally struck at 3-2 and
again at 5-2 before wrapping up a
hard-earned victory.
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 42 Sport
Johnson hails
axed captain
Borthwick
▲
RUGBY UNION
BY FRANK DALLERES
ENGLAND manager Martin Johnson
admits dropping long-standing cap-
tain Steve Borthwick from his 32-man
elite squad has been the hardest deci-
sion of his coaching career.
Johnson installed Borthwick as
skipper upon taking over in 2008 and
stuck by him for two years, despite
vociferous criticism of the Saracens
lock’s international performances.
But Borthwick’s injury in March
has allowed Johnson to audition sec-
ond-row alternatives such as
Northampton’s Courtney Lawes and
Gloucester’s Dave Attwood, who both
impressed on last month’s tour of
Australia and New Zealand.
And that prompted Johnson to axe
his former England colleague – a
move that also almost certainly ends
the 30-year-old’s hopes of playing in
next year’s World Cup.
“Leaving Steve Borthwick out was a
very hard decision,” said Johnson.
“He’s done a fantastic job for
England over the last couple of years
and it’s the most difficult call we’ve
had to make.
“It is very tough on Steve but it goes
to show the depth of talent we’ve got
in that area. We want to build on
what we’ve done this summer and a
southern hemisphere tour that was
hugely beneficial and a really positive
experience for the group.
“We were able to give lots of oppor-
tunities to players and expose them
Borthwick captained Johnson’s England team for two years, but now finds himself out in the cold.
to a high level of rugby.”
Bath’s Lewis Moody is expected to
retain the captaincy on a permanent
basis, having shone as Borthwick’s
stand-in against France in the Six
Argentines and Germans
agree: England are rubbish
WORLD CUP
2010
BY FRANK DALLERES
ARGENTINA and Germany took
time out from verbally attacking
each other in the build-up to tomor-
row’s eagerly awaited quarter-final
to join forces and ridicule
England’s woeful World Cup.
Martin Demichelis, the Bayern
Munich and Argentina defender,
sunk the knife in deepest by pour-
ing scorn on John Terry’s below-par
performance in Sunday’s 4-1 drub-
bing by Germany.
Asked about criticism of his own
displays, Demichelis said: “Seeing
the way Terry played against
Germany, if I was Terry I wouldn’t
be able to go back to my country.”
SPORT | IN BRIEF
Platt joins Man City as coach
FOOTBALL: Former England captain
David Platt has joined Roberto
Mancini’s coaching staff at Manchester
City.
Platt, who has managed England
Under-21s and Nottingham Forest, has
been named first-team coach and will
work with assistant manager Brian
Kidd and coach Fausto Salsano.
The 44-year-old, who won 62
England caps, played alongside
Mancini at Sampdoria.
Flower confident in KP
CRICKET: England coach Andy Flower
has backed Kevin Pietersen to end his
long wait for a half-century in one-day
internationals.
Pietersen goes into tomorrow’s final
ODI against Australia looking for his
first 50 in 16 innings.
But Flower said: “I think he looks in
superb form. His balance is excellent.
Nations and then delivered a Test win
over Australia on their own soil.
Borthwick drops to the Saxons
squad, along with Harlequins wing
Ugo Monye, Sale centre Mathew Tait,
Germany captain Phillip Lahm
had earlier mocked Fabio Capello’s
team, deliberately implying that
they did not deserve to be consid-
ered a big team.
“Now we have to show we can
finally beat a big team – someone
like Argentina, Brazil or Spain,”
said Lahm. “Definitely, these are
bigger opponents than England.”
Such England-bashing was a
mere sideshow to the real business
of baiting each other, however,
with Diego Maradona somewhat
inevitably making his voice heard.
Following criticism of his team’s
behaviour from Bastian
Schweinsteiger, the Argentina
coach retorted that the Germany
midfielder was just scared, mock-
ing him in a television interview by
repeating the accusation with a
He is hitting balls through the off side
as well as I have ever seen him.”
Meanwhile, England will host the
ICC Champions Trophy in 2013, the
International Cricket Council has con-
firmed.
Denman’s career is over
HORSE RACING: Godolphin have
brought Denman’s career to an early
end by withdrawing the four-year-old
from next week’s Darley July Cup.
The Australian import has been
deemed not fit enough and will now
take up stud duties in his native coun-
try.
Simon Crisford, Godolphin’s racing
manager, said: “The idea was to come
over here for that race, but we’ve run
out of time with him.”
Injured Henin out of US Open
TENNIS: Seven-time Grand Slam
champion Justine Henin has pulled out
CITYA.M. 2 JULY 2010
ENGLAND | ELITE PLAYER SQUAD
FORWARDS: D Attwood, G Chuter, D Cole,
T Croft, P Doran-Jones, N Easter, H Fourie,
D Hartley, J Haskell, C Lawes, L Moody, T
Palmer, T Payne, S Shaw, A Sheridan, S
Thompson, D Wilson, J Worsley
BACKS: D Armitage, C Ashton, M
Banahan, D Care, M Cueto, T Flood, R
Flutey, B Foden, S Hape, D Strettle, M
Tindall, D Waldouck, J Wilkinson, B Youngs
Picture: ACTION IMAGES
Leicester lock Louis Deacon and Bath
hooker Lee Mears. Joining Lawes and
Attwood in Johnson’s top four locks
are Tom Palmer of Stade Francais and
Wasps veteran Simon Shaw.
faux-Teutonic accent.
“What’s the matter
Schweinsteiger?” taunted
Maradona. “Are you nervoussh?”
He added: “We are coming out to
attack them and play in their faces.
This is what has made them nerv-
ous.”
Schweinsteiger had earlier said:
“You see how they gesticulate, how
they try to influence the referee.
That is not part of the game. That is
a lack of respect. That is what they
are like.”
TODAY’S MATCHES
Holland v Brazil
Port Elizabeth, ko 3pm, ITV1
Uruguay v Ghana
Johannesburg, ko 7.30pm, BBC1
of next month’s US Open with an
elbow injury sustained at Wimbledon.
Henin suffered the partial fracture
during her fourth-round defeat to com-
patriot and rival Kim Clijsters on
Monday. The 28-year-old has also had
to pull out of a planned ‘Best of
Belgium’ exhibition match with
Clijsters in Brussels next week, which
had been expected to draw a world
record crowd of 40,000.
Westwood makes steady start
GOLF: England’s Lee Westwood played
through a calf injury to start his French
Open challenge with a one-under-par
first round of 70.
Westwood, who is nursing a swollen
calf, is seven shots behind Dutch leader
Robert-Jan Derksen, with three players
on five under.
Among those is Frenchman Jean van
de Velde, who famously fluffed his
chance to win the Open 11 years ago.
CITYA.M. 2 JULY 2010
Hodgson: I
only had eyes
for Liverpool
▲
FOOTBALL
BY FRANK DALLERES
LIVERPOOL manager Roy Hodgson
insists he never considered delaying
his appointment on the off-chance
the England job became available.
Hodgson has been touted as one of
the favourites to succeed Fabio
Capello, whose future as national
team coach is under discussion by
England chiefs.
But rather than stall while the
Italian’s future is decided over the
next 10 days, Hodgson completed his
move from Fulham by signing a
three-year deal at Anfield.
And, speaking yesterday at his offi-
cial presentation as replacement for
the sacked Rafael Benitez, the
Englishman declared he only had
eyes for Liverpool.
“When this job was first discussed
with me there was no idea that there
might be a change in the England set-
up,” said the 62-year-old.
“Also as a second point I don’t
expect a change in the England set-
up. Thirdly there was never a case of
me thinking of holding on and hedg-
ing my bets about that because I
wanted to be here.
“The only question in my mind,
after Liverpool had completed the
due process to decide on who would
be the manager, was whether or not
Don’t make Rooney World
Cup scapegoat, says Owen
England’s forgotten man sticks up for his club
colleague and reminds Fabio Capello he is still
available for selection. By Frank Dalleres
E
NGLAND outcast Michael
Owen has leapt to the defence
of Wayne Rooney, insisting his
Manchester United team-mate
does not deserve to be singled out
for criticism during the World Cup
inquest.
Rooney had his best season yet
for United but looked a pale shad-
ow of the rambunctious marksman
who terrorised Premier League
defences once he joined up with
the national team for the trip to
South Africa.
His abject failure to perform was
arguably the most disappointing
element for England of a tourna-
ment that had no shortage of low
points, from goalkeeping howlers
to record thrashings at the hands of
Germany.
But Owen believes Rooney was
just one of the many from Fabio
Capello’s squad who failed to live
up to their billing, and backed his
erstwhile strike partner to return
from a short break in top form.
it would be me.”
Journeyman Hodgson, whose idio-
syncratic career has taken in spells as
coach of Switzerland, Finland, Inter
Milan and a host of Scandinavian
clubs, laid out his ambitions for next
season.
Top of his list is returning to the
Champions League but, arguably
more importantly, he has prioritised
convincing unsettled stars Steven
Gerrard, Fernando Torres and Javier
Mascherano that they should stay.
“I hope they won’t be tempted, on
the back of one disappointing year, to
jump ship,” Hodgson added.
“I personally can’t nail their feet to
the floor. I’ll try to convince them
that if they stay here and have a good
season then it’s a good club to play
for.
“It’s out of my hands to an extent,
but I do know the club is anxious to
keep the players, I’m anxious to keep
the players.”
Hodgson was given a measure of
encouragement by Gerrard’s
response to his appointment, the cap-
tain calling him “the right man for
Liverpool”.
Gerrard, who has been linked with
Real Madrid, added: “I think it’s been
worth the wait and I’m sure he’s just
keen now to get on with it and start
to quickly put in place his plans for
the new season.”
“People talk about Wayne
after the World Cup because
he is Wayne, but there
were other players who
didn’t perform for
England,” said Owen.
“He wasn’t at his
best but he’s been
at his best many
times for Man
United and
England. We all
know he’s a top,
top, world class player.
“Bear in mind as a striker
you need everyone else to
play well or you don’t look
good either and, whatever
the reason was, he’s not been
at the top of his game. Maybe
if he has a couple of weeks off
he’ll be fresh for next sea-
son.”
Owen has been repeated-
ly overlooked by Capello
since the Italian took
over as manager, lead-
Sport | Football 43
No bids yet but that’s okay, says chairman Broughton
LIVERPOOL chairman Martin cially put the club on the market in July-ish for the first round of bids
Broughton says there have no been May, with British Airways chief but that’s not a final stage – that’s a
no bids for the club yet but still Broughton tasked with overseeing first entry through.
hopes a sale will go through by the the process. “We’re hopeful – and I wouldn’t
end of August. “There have not been any offers put it any stronger than that – that
The Reds’ American co-owners at this stage,” said Broughton. a deal can be done by the end of the
Tom Hicks and George Gillett offi- “We are looking to the middle of transfer season.”
Hodgson’s first task is to persuade Gerrard, Torres and Mascherano to stay at Anfield. Picture: ACTION IMAGES
ing to the growing belief the 30-
year-old may never get to add to his
89 caps.
But the former Liverpool trainee
is quick to stress that his absence
from the World Cup was first and
foremost down to hamstring sur-
gery, and remains hopeful of win-
ning an international recall.
“I missed this tournament
through injury,” he added.
“Whether I would have
been selected or not
is a different matter.
But I have definitely
not retired at all from
international football
and if I was ever called
upon I would go and play.”
Owen admits he too is mys-
tified by England’s dismal sum-
mer.
He said: “It was frustrating for
everyone. I’ve never known so
many questions come out of a tour-
nament and so many opinions
about why it went so wrong.
“Everyone’s had their say and
you could probably point to
many different things that you
would improve in the future.”
Michael Owen is part of the
launch of Sky Sports 1 and Sky
Sports 2 on BT Vision. Find out
more at www.bt.com/sport