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BETTING
ALL AT ST ANDREWS US REPORTING
SEASON FOCUSES
OOSTHUIZEN WINS OPEN P22 ON BANKS P16
Issue 1,179 Monday 19 July 2010 www.cityam.com FREE

FORMER PRU BOSS Boeing sells

30 jets to
TUCKER JOINS AIA Emirates

▲
AVIATION
BY STEVE DINNEEN
EMIRATES will order 30 new Boeing
INSURANCE 777 aircraft in a deal worth more
▲

BY STEVE DINNEEN than $7bn (£4.6bn).

AIA WILL today announce the shock
appointment of the former head of
FTSE-100-listed Prudential as its new
chief executive.
Mark Tucker will take the reigns at
the firm just weeks after
Prudential’s $35.5bn (£23bn) AIA
takeover bid humiliatingly col-
lapsed.
He will now be responsible for
overseeing the firm’s momentous
listing, resurrected last week, which
could raise more than $20bn – the
biggest ever conducted in Hong
Kong.
Tucker, 53, was a major player in
the growth of Prudential’s Asian
business. He held the chief executive
position from 2005 until quitting in
2009. He had been touted as a possi-
ble replacement for Prudential boss
Tidjane Thiam if the chief executive
buckles under the pressure to quit in
the wake of the failed takeover bid.
Tucker will replace Mark Wilson,
who has held the top job at the Asian
wing of AIG since last year. Wilson is
expected to remain at the unit until
the end of 2010.
He courted controversy during the
Prudential bid when it emerged he
planned to quit the firm if the
takeover went ahead. The native New
Zealander was hired by Edmund Tse,
AIA’s former chief executive, from
Former Prudential boss Mark Tucker will now oversee AIA’s $20bn IPO, which is slated for October.
AXA Asia Pacific in 2006.
The appointment is the latest sign
that AIG boss Robert Benmosche is
asserting his authority at the bailed
out insurer, which is nearly 80 per
cent owned by the US government.
Last week Harvey Golub quit the
firm after falling out with
Benmosche over the failed
Prudential deal.
Benmosche was a strong propo-
nent of the bid and was understood
to be willing to push through a deal
at a lower price when it ran into
trouble. However he clashed with
AIA’s management and was over-
ruled by AIG’s board, leading to the
collapse.
The failed bid cost Prudential an
estimated £450m and has led to per-
sistant calls for the heads of Thiam
and chairman Harvey McGrath.
The flotation, slated for October, is
now vital if AIG is to fully repay the
Picture: PHOTOSHOT
$182.3bn government bailout pack-
age. Sources close to the firm say
they do not expect the IPO to be
delayed as a result of Tucker’s
appointment.
The firm hopes to raise $20bn by
selling around 40 per cent of the
business on the market and releas-
ing further stakes to strategic
investors.
AIG was unavailable for comment.
AIG SETTLES LEGAL ROW: PAGE 7
The contract will be unveiled at
the Farnborough Air Show, which
starts today. It follows a period of
rapid expansion for the Dubai-based
airline, which last month ordered 32
Airbus A380 superjumbo jets, worth
around $115bn.
The deal will be welcomed by
Boeing bosses still smarting from the
firm’s 787 “Dreamliner” project,
which crawled into the UK several
years overdue – and billions of
pounds over budget.
The industry showpiece at
Farnborough will see a bonanza of
aircraft sales, with Boeing rival
Airbus expected to shift at least 100
planes during the week long event.
Boeing says its defence business
expects moderate growth in revenue
next year after relatively flat results
in 2010. It announced yesterday its
defence revenue will be bolstered by
international sales of existing
planes, as well as expansion into
adjacent markets such as unmanned
vehicles.
The firm has been badly hit by the
cancellation of several major mili-
tary projects by the Pentagon. It is
now locked in a fierce bidding war
with EADS and a team including
Ukraine’s Antonov, for a lucrative
contract to build 179 refuelling
tankers for the US Air Force.
FARNBOROUGH PREVIEW: P9

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 2 News
Sweden’s failed Tobin tax experiment
EDITOR’S LETTER
ALLISTER HEATH
BAD ideas have a habit of never really
going away. There were renewed calls
at the weekend for a Tobin tax on
financial transactions, a deeply flawed
concept which remains popular in
influential circles. Supporters should
acquaint themselves with an excellent
study published in the mid-1990s by
the Canadian government’s deposito-
ry services programme, which
remains the definitive article on the
subject.
Its author, Marion Wrobel, shows
that the Swedish Tobin tax was an
unmitigated disaster. The rise and fall
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News Editor Ben Griffiths
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WHAT THE OTHER PAPERS SAY THIS MORNING
MANDARINS TO BE OFFERED EARLY
REDUNDANCY PAYOUTS
Thousands of senior civil servants are
being offered voluntary redundancy
ahead of big cuts in their severance
terms, sparking fears that some of
Whitehall’s most talented officials
could walk before the terms are
reduced. The offers are less to do with
the coalition’s plans to tackle spend-
ing to reduce the budget deficit.
Instead, they reflect plans that
departments have been drawing up
following the Labour government’s
decision to cut the £500m cost of the
senior civil service by 20 per cent over
three years.
CITY BUSINESSES TO PAY FOR OWN
SECURITY SQUAD
Companies moving into a huge new
City office and retail complex will be
asked to pay for their own dedicated
police force, in a move some officers
of the only known case of a real life
Tobin tax began in the 1980s, when
Sweden was going through one of its
extreme socialist phases. In January
1984, Wrobel recounts, Sweden intro-
duced a 50-basis-point tax on the pur-
chase or sale of equities, applicable to
all trades (and to stock options). A
round trip (purchase and sale) meant
a 100-basis-point tax. The rate was dou-
bled two years later; by 1987, a tax at
half the normal rate was also slapped
on trades between dealers. In January
1989, fixed-income was also targeted
for punishment: the tax was 0.2 basis
points for bonds with a maturity of 90
days or less, rising to three basis points
for maturities of five years or more.
Two years on, all of the taxes had
been swept away. As Wrobel recounts,
the government’s estimates of how
much revenues would be raised by the
tax proved to be laughably over-opti-
mistic; the whole episode could have
been a chapter in one of Arthur
Laffer’s books on how higher taxes kill
economic activity and reduce tax
City row over
director deals
FINANCIAL SERVICES
▲
BY DAVID HELLIER
A TOP City figure has spoken out
against a decision by the Financial
Services Authority to prevent stock-
brokers from notifying clients that
they are passing on shares being sold
by a company director.
Directors’ share sales can have a
material impact on market sentiment
towards their company. Many brokers
thus traditionally gave investors a
heads up if they were about to pur-
chase shares that had just been sold
by one of the issuing company’s direc-
tors.
In a recent directive, however, the
FSA has made it clear it perceives this
as the passing on of insider informa-
tion. Brokers aren’t happy and a
group of them are now trying to per-
suade the FSA that it is taking the
think will revolutionise relations
between business and law enforcers.
The squad, provided by the City of
London police force, will be deployed
at the One New Change development
opposite St Paul’s Cathedral, after a
year-long police trial suggested busi-
nesses are happy to pay for extra pro-
tection against threats ranging from
fraud to terrorism.
EADS SETS ITSELF ON COURSE FOR US
PURCHASES
EADS is ready to use an €8bn
(£6.75bn) cash war chest to make
acquisitions in the US now it has
weathered the downturn and com-
pleted a restructuring of its business-
es, says its chief executive. “We have a
strong cash position; the crisis is part-
ly behind us; integration is very well
advanced and now it’s time to go for
acquisitions,” said Louis Gallois, head
of Europe’s largest aerospace and
defence group. “I am supported by
the board for acquisitions and we will
do it.”
receipts. Instead of bringing in 1.5bn
kroner for the levy on fixed income
securities alone, as predicted by offi-
cials, the tax collected an average of
just 50m kroner a year. The cost of gov-
ernment borrowing also went up, as
investors demanded greater compen-
sation to hold a security on which
taxes had just been hiked, further
eroding the miniscule revenues col-
lected. It all went downhill after that.
The number of transactions in shares
collapsed, triggering substantial
declines in capital gains tax receipts
which offset gains from the Tobin tax
(stock prices also fell as a result of the
tax, further eroding gains as well as
making it harder for firms to raise
capital for expansion and jobs).
The equity, bond and derivative
markets were decimated by the taxes;
business flocked to London, to the
delight of City institutions. When the
tax was doubled in 1986, 60 per cent
of trades for the 11 most traded
Swedish stocks moved to London. By
1990, over half of all Swedish equity
wrong approach.
“Canaccord’s view is that in certain
instances we should have the right to
disclose a material event to a potential
purchaser of stock,” says Mike
Cuthbert, head of equity capital mar-
kets at Canaccord Genuity.
The FSA acknowledges that brokers
worry that if they do not disclose the
fact that it is a director’s stock they
are selling, they may lose subsequent
business from clients to those who do
make such disclosures.
But the FSA says such disclosure
could be a breach of insider rules.
Mike Cuthbert, head of
equity capital markets
at Canaccord Genuity
says investors should
be told material events
OIL GIANT GAVE £1M TO FUND CLI-
MATE SCEPTICS
One of the world’s largest oil compa-
nies has broken its pledge to stop
funding groups that promote scepti-
cism about man-made climate
change. ExxonMobil, parent company
of Esso, gave almost £1m last year to
organisations that campaign against
controls on greenhouse gas emis-
sions.
INVESTORS JOIN REVOLUTION IN
OWNERSHIP OF CITY LAW FIRMS
One of Britain’s best-known private
equity investors is set to shake up the
City legal market by backing the first
of a new breed of law firms. Coller
Capital, the investment vehicle of
Jeremy Coller, is one of several private
equity firms that have provided fund-
ing for MJ Hudson, a boutique law
firm that plans to sell 25 per cent of
its shares to outside investors.
trading had moved to London. During
the first week of the Tobin tax on
bonds, trading slumped 85 per cent,
even though the tax on five-year
bonds was only three basis points.
Futures trading collapsed by 98 per
cent and options trading stopped alto-
gether. Trading in money market secu-
rities, which faced the lowest tax rate,
collapsed by a fifth.
No wonder the Swedes eventually
saw sense. There are two lessons here:
the obvious and the not so obvious. A
Tobin tax will decimate the financial
sectors of any country or groups of
countries that impose it; only a full,
100 per cent global tax in every coun-
try in the world would avoid this. That
is evident. But even were the tax to be
imposed globally, it would still kill
transaction volumes, make markets
less liquid, increase the cost of raising
finance for all firms and punish com-
panies that operate in more than one
currency. No sane British government
should even dream of imposing a
Tobin tax. allister.heath@cityam.com
BP chief executive Tony Hayward is facing a crucial week
BP cap stops oil spilling
ENERGY
▲
BY EMMA SADOWSKI
BP said yesterday its new cap has
stopped the oil that has gushed into
the Gulf of Mexico for three months
and hopes to keep it that way until a
relief well can permanently seal the
leak next month.
The British energy giant expressed
confidence its blown-out Macondo
well is intact below the seabed and it
would not need to resume a collection
system that has been used to siphon
VINCE CABLE: BANKS ARE MISLEADING
SMALL FIRMS
Vince Cable has attacked bank claims
that they are approving at least four
out of every five small business loan
applications as “misleading” ahead of
the launch of Government ideas to
improve the flow of finance. The
Business Secretary said that the banks
had made it more difficult for busi-
nesses to apply and that they were fail-
ing to meet demand.
BRITISH FINANCIER ANTHONY WARD
BEHIND £658M COCOA TRADE
A British financier is behind a £658m
cocoa trade which single-handedly
moved the global cocoa market.
Anthony Ward, 50, bought 241,000
tons of cocoa beans. Ward, who is
worth around £36m, holds so much of
the market he could force manufac-
turers to raise the price of Britain’s
favourite chocolate bars.
CITYA.M. 19 JULY 2010
NEWS | IN BRIEF
Motorola close to Nokia deal
Motorola is close to selling most of its
wireless-network equipment business to
Nokia Siemens Networks (NSN) for
$1.2bn (£780m). NSN, a joint venture of
Finland's Nokia and Germany’s Siemens,
would buy Motorola’s network unit
under the deal, which could be
announced as early as today. Motorola
plans to keep its iDen technology, which
works for walkie-talkie types of commu-
nications. Motorola last night declined to
comment.
Companies: forget re-elections
Companies are being urged to ignore
guidelines that require them to annually
re-elect board members. Three of the
UK’s biggest investors – Hermes, Railpen
and the Universities Superannuation
Scheme – have written to 700 compa-
nies urging them not to comply. In the
letter, they warn that annual election of
directors can undermine collective deci-
sion making and leave companies rud-
derless if whole boards are thrown out
at once. The new Financial Reporting
Council (FRC) code of practice is not
compulsory, with companies being told
they can “comply or explain”.
oil from the undersea gusher to ships
on the surface.
But the official in charge of the US
government’s spill response reacted
cautiously, saying pressure readings
needed to be analysed and tests of the
well’s structural integrity that began
on Thursday may be extended only in
24-hour increments. “As a condition of
the extension, the US government has
required significant new monitoring
and periodic evaluation and approval
by our science team,” said retired
Coast Guard Admiral Thad Allen.
DEUTSCHE CEO: WEST’S LEVIES ON
BANKS MAY LIFT ASIA’S ROLE
Asia’s already rising importance as a
profit center for financial services
could gain more momentum as gov-
ernments in the US and Europe levy
new taxes on global banking profits,
according to Deutsche Bank chief
executive Josef Ackermann. “The rela-
tive importance of Asia will even
increase” as a result of regulatory
moves against banks in the West, Dr.
Ackermann said.
SEC SPLIT OVER GOLDMAN DEAL
The Securities and Exchange
Commission split in its decision to
settle its landmark lawsuit against
Goldman Sachs, The Wall Street
Journal has learned, in a dispute over
the agency’s move to levy a $550 mil-
lion fine even after diluting its fraud
allegations against the giant bank. It
was a 3-2 decision on party lines.˚
CITYA.M. 19 JULY 2010 News 3

Fabulous Fabrice Tourre set

for a fight to clear his name
which it has agreed to pay a $550m girlfriend just before the crisis, is
▲

BANKING
BY VICTORIA BATES
FABRICE Tourre, the man named in
the SEC allegations of fraud against
Goldman Sachs, is today expected to
file a defence document in court
insisting that he will continue to
fight to clear his name.
Tourre’s decision comes in spite of
Goldman’s move last week to reach a
settlement with the regulator, under
(£359.3m) penalty. The bank acknowl-
edged that its marketing materials
for the sub prime mortgage-backed
synthetic collateralised debt obliga-
tion (CDO) in question were incom-
plete, though it has not admitted or
denied the fraud allegations.
Tourre, who raised his fears over
the complexities of the financial
products associated with the US hous-
ing market in a series of emails to his
thought to be prepared to take his
case to trial. His legal costs are being
covered by Goldman, where he is still
employed on indefinite unpaid leave.
In the emails, Tourre referred to
himself as “Fabulous Fab”, describing Fabrice Tourre is
the CDO at the centre of the SEC’s still on indefinite
case as a “product of pure intellectual leave from
masturbation”. Goldman’s
He has engaged Allen & Overy’s Picture: GETTY
Pamela Chepiga to defend him.

New HQ plans
under threat
at JP Morgan
If JP Morgan chooses to abandon
▲

PROPERTY
BY VICTORIA BATES
CANARY Wharf is in danger of being
left with a yawning gap in its skyline
in the years to come if JP Morgan
decides to pull its plans to move into
new headquarters under construc-
tion on the banks of the Thames.
The future of the Riverside South
building was cast into doubt again at
the weekend as it emerged JP Morgan
has held talks with Mayor of London
Boris Johnson over its concerns that
London is on course to lose its stand-
ing as a world-class financial hub.
Fears over a punishing regulatory
regime for banks, uncompetitive tax
rates for high earners and the impact
of the new government’s austerity
measures have led the bank once
more to question the development of
its new HQ, on which above-ground
construction has yet to commence.
JP Morgan bought the site from the
Canary Wharf Group (CWG) in 2008
for £237m. If it pulls out of the Lord
Rogers-designed project at this late
stage, CWG will be entitled to pay-
ment for work already completed, as
well as a contractual £76m break fee.
the project entirely, Riverside South is
expected to lie dormant until another
large tenant appears on the scene,
since CWG will not build above
ground level on a speculative basis.
JP Morgan has a loose deadline of
the end of the year to make a deci-
sion. Yet property industry sources
insisted the bank had “options” apart
from exiting the development entire-
ly. “2008 was a very tumultuous time
for the property market and the orig-
inal deal was built to give a degree of
flexibility to both developer and occu-
pier,” one said, adding that the origi-
nal internal area figure of 1.9m sq ft
could yet be substantially downsized.
ANALYSIS l JP Morgan
$
46
38.97
44 16 Jul
42
40
38
36
28 Apr 18 May 8 Jun 28 Jun

NEWS | IN BRIEF
Hungary loan talks with IMF fail
Hungary faces a fall in its currency and a
surge in financing costs due to a failure
to reach agreement with lenders on its
economic plans and it will need to reach
a deal to retain the trust of investors.
Talks with the International Monetary
Fund (IMF) and the EU ended prema-
turely on Saturday without a conclusion
of the country's programme review,
which means Hungary will not have
access to remaining funds in its €20bn
(£16.9bn) loan secured in 2008 until a
deal is reached.
GDF bid for International Power
French energy giant GDF Suez is report-
edly working on a £6.4bn cash bid for
Britain's International Power in the lat-
est twist in a long-running courtship.
Sources say GDF met advisers NM
Rothschild, Goldman Sachs and BNP
Paribas over the move and that it also
had the backing of the French govern-
ment, its 35-percent shareholder. Talks
between the two groups over the 420p-
a-share proposal were at an initial stage
after discussions that lasted several
months broken down in January.
Selfridges Christmas in August
Selfridges department store in Oxford
Street is getting ready for Christmas
early – 145 days before the big day. In
the earliest start ever for the store, the
Christmas shop will open on 2 August,
allowing organised shoppers to start
stocking up on festive decorations includ-
ing pre-lit trees, crackers, fairy lights or
even a £500 life-size donkey. Anyone
keen on entering into the Christmas spir-
it can even paint their own baubles. The
store said previous sales had shown
some customers, especially overseas
tourists started thinking about Christmas
during August.
 4 Politics
Dormant bank
cash will fund
charity work
▲
POLITICS
BY DAVID CROW
THE Prime Minister will today
announce plans to fund charitable
projects using hundreds of millions of
pounds that is lying dormant in
unclaimed bank accounts.
David Cameron will detail propos-
als to siphon off money from accounts
that haven’t been used in the last 15
years or more, and use the cash to
fund schemes in the voluntary sector.
A new wholesale bank will be
responsible for doling out the money
– thought to total up to £400m – to
charities and other voluntary organi-
sations that apply for grants.
Cameron is hoping the scheme,
which will be announced at a speech
in Liverpool later today, will prove
that his plans for a “Big Society” have
not been put on ice in the face of the
tightest spending squeeze in Britain’s
peacetime history.
“I can announce today that a [Big
Society Bank] will be established using
every penny of dormant bank and
building society account money allo-
cated to England,” the Prime Minister
will say.
“These unclaimed assets, alongside
the private sector investment that we
will leverage, will mean that the Big
Society Bank will – over time – make
available hundreds of millions of
pounds of new finance to some of our
most dynamic social organisations.”
The government is using legislation
passed by its Labour predecessor,
which allows it to tap cash that has
been lying in bank accounts that have
been dormant for 15 years or more.
Labour was planning to hand the
cash out alongside National Lottery
funding.
Cameron will make the announce-
ment on the eve of his first Prime
Ministerial trip to Washington, where
he will call for a realignment of the
British-American “special relation-
ship”.
Aides said he would reaffirm his
position on BP, pointing out that the
company’s financial strength is vital
for Britain and pensioners.
David Cameron is set to meet with Barack Obama tomorrow
CITYA.M. 19 JULY 2010
Osborne starts
to assess plans
for huge cuts
▲
POLITICS
BY DAVID CROW
THE CHANCELLOR and other senior
ministers will this week start trawling
though departmental spending pro-
posals, after Whitehall was ordered to
slash its budget by up to 40 per cent.
The public expenditure committee
(PEX), which is chaired by George
Osborne, will pore over the depart-
mental proposals to see if ministers
and officials have risen to the task of
finding the deepest cuts in peacetime
history.
Most departments managed to
make their submissions by Friday’s
deadline, although a handful have
missed the cut off date. They have
been given a period of a “couple of
days” grace, one official said.
Aides to the chancellor said that
early impressions suggested the
majority of cabinet ministers had sub-
mitted bold proposals that were in
“pretty good shape”.
But one warned that a couple of
unnamed cabinet ministers would
need to work with the PEX to improve
their proposals. “Some need a bit of
work, a bit of knocking into shape,”
one Treasury official said.
Osborne will be joined on the PEX
by Danny Alexander, the chief secre-
tary to the Treasury, and Oliver
Letwin, minister of state at the
Picture: GETTY Cabinet Office.
CITYA.M. 19 JULY 2010 News 5

US vice president says reform

of Wall St ends uncertainty
tant about expanding to move ahead. financial crisis, and create a consumer

▲
REGULATION
BY HARRY BANKS
THE passage of Wall Street reforms by
Congress helps the US economic recov-
Begbies Traynor’s Mark Fry ery now under way by easing uncer-
(above) and Jamie Taylor (bot- tainty that had been holding back
tom) have been appointed investment, Vice President Joe Biden
administrators for Goldtrail said yesterday.
Biden said financial regulation leg-
islation passed on Thursday would
encourage businesses that were hesi-
“The very uncertainty they had (has)
now been settled by the passage of the
reforms. They didn’t know which way
they were going to go. They didn’t
know how much was going to hap-
pen,” he said in an interview.
The Senate gave final congressional
approval to the sweeping shake-up of
rules designed to tighten financial
industry oversight, limit risky lending
practices at the root of the 2007-2009
watchdog agency.
“It’s passed. And they’re going to
know how to deal with it,” Biden said.
The bill, a year in the making, is set
to be signed into law by President
Barack Obama on Wednesday. It joins
healthcare reform as another key leg-
islative achievement by Obama this
year as the Democrats try to maintain
political control in congressional elec-
tions on 2 November.

Final call for

Goldtrail hols
Nicholson said the number of peo-
▲

AVIATION
BY MARION DAKERS
THE LAST of Goldtrail’s holidaymak-
ers are making their way home this
week as administrator Begbies
Traynor begins to wind up the failed
budget holiday operator.
The Civil Aviation Authority (CAA)
said all flights back from Greece and
Turkey will operate as normal today
through charter airlines such as Onur
Air, Turkuaz and Viking, with flights
home due to leave later in the week to
be announced today.
“We might find it makes sense to
merge a few flights, but most
Goldtrail customers will be coming
home on their original flights, or one
within an hour or two of that,” CAA
spokesperson Jonathan Nicholson
told City A.M.
Around 16,000 customers were
either abroad or ready to fly from the
UK when the Surrey-based company
went into administration on Friday,
when all outbound flights were can-
celled. Around 50,000 holidays are
thought to be affected in total.
ple still abroad will be substantially
less by the end of today.
“The vast bulk of Goldtrail passen-
gers will have returned on their origi-
nal flights, as people tend to return
from holidays at the weekend. We
won’t know the exact number of peo-
ple left abroad until we get the
records from operators.”
Mark Fry and Jamie Taylor of
Begbies Traynor were appointed as
administrators for the firm on Friday,
and said they “are prioritising
resources to work with ATOL to
ensure passengers currently abroad
are assisted as quickly and efficiently
as possible”.
Goldtrail has several links with
another failed travel firm, XL Leisure,
which folded in September 2008.
Abhi Dighe, who introduced several
Greek package holidays at Goldtrail,
was managing director at XL’s
Kosmar brand for 13 years.
Former XL boss Phil Wyatt provid-
ed Goldtrail with flights to Greece
through Viking Airlines, in which he
has a 50 per cent stake.

Club Med could be taken private

by Brunei-based wealth fund
60-year-old company are thought to
▲

M&A
HOLIDAY company Club Med looks
set to be taken private by Brunei pri-
vate equity group BMB.
BMB, which manages funds for the
Brunei royal family, is believed to
have approached investors in the
Paris-listed company to offer a deal
that would value the firm at €800m
(£675m).
The four main shareholders in the
have met with BMB to thrash out an
agreement.
Club Med’s newest shareholder,
Chinese firm Fosun, acquired a 7.1
per cent stake in the firm just five
weeks ago but are understood to be
supportive of a deal.
A spokesperson for BMB declined to
comment on the matter yesterday.
Club Med was could not be reached
for comment yesterday.
 6 News
Ocado is bruised after yet
more bashing from analysts
▲
RETAIL
BY STEVE DINNEEN
OCADO received yet another mauling
at the hands of an analyst in the run-
up to its proposed £1bn flotation.
Evolution’s Dave McCarthy joined
the growing list of analysts to bash
the online grocer as it attempts to
convince investors to part with
£200m despite never having turned a
The Ocado team’s flotation proposal has been questioned by analysts Picture: GETTY profit.
McCarthy raised concerns over
whether the fundraising will be
enough to achieve the ambitious
expansion plans put forward by the
Ocado board.
He also questioned the directors’
remuneration asking for clarification
over how much of the new cash will
make its way into the pockets of the
management team.
An Ocado spokesman said
McCarthy had missed a £100m capex
Telefonica bid
for Vivo joint
venture fails
▲
TELECOMS
BY MARION DAKERS
SPAIN’S Telefonica has abandoned its
€7.15bn (£6bn) bid to buy out Portugal
Telecom from its Brazilian joint ven-
ture, after the deadline for the
Portuguese firm to respond expired
on Friday.
Telefonica, owner of O2 network,
said it wouldn’t wait until 28 July for
a decision on the Vivo venture, as
requested by Portugal Telecom (PT).
PT failed to reach an agreement in
a last-minute boardroom meeting on
Friday night, despite hours of what it
described as “constructive” discus-
sions.
Both companies are now left with
joint ownership of a 60 per cent stake
in Brazil’s biggest mobile phone com-
pany, via holding firm Brasilcel,
despite Telefonica twice upping its
offer to take over the entire joint ven-
ture.
Earlier this month, a European
Deal made perfect sense
W
HAT a terrible mess. There
is little worth rescuing
from the ashes of
Telefonica’s failed attempt
to buy Portugal Telecom (PT) out of
their Brazilian joint venture, after
the Portuguese government exer-
cised its “golden share” option to
scupper the bid. For both sets of
shareholders, the deal would have
made perfect sense.
Telefonica could have realised its
long-term ambition of merging Vivo,
the Brazilian network operator it
controlls with PT, with Telesp, its
fixed-line operator. That would have
allowed the Spanish incumbent to
offer triple-play deals to consumers
and enterprise while reaping a stag-
gering €4bn in cost synergies. Such a
firm would have the scale to
increase Vivo’s 30 per cent share of
Brazil’s fast-growing mobile market,
which currently counts 184.45m
subscribers.
CITYA.M. 19 JULY 2010
facility the firm has in place. He said:
“Post IPO, Ocado will have... sufficient
funding to build fully [a second
depot] to £1bn in sales capacity. We
have no expectation of further fund-
ing.”
The spokesman would not com-
ment on speculation the firm had
been warned against offering shares
to its staff and customers. The uptake
of these shares appears to be well
below initial estimates.
Court of Justice ruling overruled the
Portuguese government’s objections
and paved the way for a deal. The gov-
ernment, which has a “golden share”
preferential vote in PT, tried to veto
the buy-out and still maintains its
opposition, despite three-quarters of
PT shareholders approving it.
The Lisbon government argued
Portugal should retain its stake in the
lucrative Brazilian market.
Both firms see Brazil as a key area
for expansion, due to a young popula-
tion and relatively low percentage of
mobile phone ownership, coupled
with stalling sales in Europe.
Telefonica hoped to merge Vivo
with its underperforming fixed-line
provider Telesp to strengthen its posi-
tion in the country.
The Spanish group could take the
long-running dispute over ownership
to the Permanent Court of
Arbitration in The Hague, to argue
the joint venture is no longer sustain-
able and should be dismantled.
PT shareholders would have been
richly rewarded for selling up.
Telefonica’s twice-sweetened €7.2bn
offer for PT’s 50 per cent stake in
Brasilcel, the vehicle that controls
Vivo, was worth 35 times Vivo’s earn-
ings. Most of PT’s investors wanted to
bite their Spanish partner’s hand off.
Alas, the Portuguese govern-
ment’s objections had nothing to do
with business. This was an old-fash-
ioned colonial spat about south
Europe’s influence in Latin America.
Portugal wants a commercial
foothold in the region, and has tram-
pled over private shareholders to
ensure it maintains one.
That leaves Telefonica and PT as
two miserable partners in a loveless
marriage. As is always the case, it is
the business that will suffer most.
BOTTOMLINE
Analysis by David Crow
CITYA.M. 19 JULY 2010
Robert Benmosche took the helm of embattled insurer AIG last summer
AIG settles in
$725m Ohio
fraud lawsuit
▲
FINANCIAL SERVICES
BY VICTORIA BATES
INSURER American International
Group (AIG) has been ordered to
cough up $725m (£473.7m) in com-
pensation to its Ohio pension fund
shareholders, as part of a settlement
of a long-running securities class
action lawsuit against the firm.
AIG was accused by the pension
funds and the Ohio attorney general’s
office of anti-competitive market
practices, including a large-scale
accounting fraud that led to a $3.9bn
restatement of the group’s financial
position in 2005. The lawsuit, which
was brought by the Ohio Public
Employees Retirement System, the
State Teachers Retirement System
and the Ohio Police and Fire Pension
Fund, sought damages for those
investors purchasing AIG stock
between October 1999 and April 2005.
It was presided over by Ohio’s cru-
sading attorney general Richard
Irish minister to Skills still vital
stay in his post to businesses
▲
POLITICS
IRISH finance minister Brian Lenihan,
who devised of some of Europe’s
toughest fiscal reforms, is in robust
health and can keep his job despite
an earlier cancer diagnosis, he said in
remarks aired yesterday.
Lenihan, praised by investors for
efforts to stem Ireland’s steep budget
deficit rise, said in January he would
only fulfil essential duties for months
to undergo treatment for a cancerous
growth found at the entrance to his
pancreas. If he recovered from his ill-
ness he would be the top contender to
take over as prime minister from his
party colleague Brian Cowen.
News 7
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Call 0800 954 1396
Visit o2.co.uk/broadband
or any ø shop We’re better, connected
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@ www.cityam.com
Cordray, who has already secured bil-
lions of dollars in compensation for
Ohio investors as part of a self-styled
drive to “hold Wall Street to account”.
Bank of America, Merrill Lynch,
Fannie Mae and Freddie Mac have all
been subjected to lawsuits on
Cordray’s watch.
As part of the settlement, AIG will
pay $725m to the shareholders, of
which $175m is due on preliminary
court approval of the settlement. AIG
may fund the remaining $550m
through one or more stock offerings.
The payout forms part of a $1bn
overall settlement, under which for-
mer AIG chief executive Hank
Greenberg, auditor PwC and General
Reinsurance Corporation have all
already agreed to compensate share-
holders for varying amounts.
An AIG spokesman said the settle-
ment would allow the firm to contin-
ue to “focus its efforts on paying back
taxpayers” after it was bailed out by
the US government in the crisis.

  
    
 
 
 

    
       
ECONOMY
IN TODAY’S changing economy voca-
tional skills are vital to business suc-
cess, according to the latest findings
from vocational education group City
& Guilds.
A survey of 1,200 London employers
showed nine out of 10 view their voca-
tionally trained staff as vital to the suc- '/5$EULJKWHUFRPPXWH
'/5$EULJKWHUFRPP
PXXWH ZZZGOUFRXN
ZZZGOUFRXN
cess of their business, while two thirds
think vocationally trained employees
make them more competitive. The
benefits of qualifications and appren-
ticeships were highlighted, with two
thirds of London employers agreeing
the benefit of training apprentices far
outweighed the costs involved.
 8 News CITYA.M. 19 JULY 2010

London shops
boom but UK June
Central London,
Like-for-like
% change on year ago

sales stutter April-June

Central London,
Like-for-like
% change on year ago
14.4%
West End 10%
UK 1.2%

10.1%
▲

RETAIL due to the World Cup and

BY MARION DAKERS
LONDON shops enjoyed June sales
14.4 per cent higher than a year ago,
Wimbledon, and the warm weather UK 0.0%
in May encouraging shoppers to
make summer purchases earlier. Sales in the West End of the capital have risen by 10 per cent on last year but growth lags behind the rest of central London
However, those who did shop in

West End falls behind rest of capital

according to research out today.
The shopping boom far outstrips
the rest of the UK, where like-for-like
growth was just 1.2 per cent, and rep-
resents the strongest sales growth in
the capital since October 2006.
Research by KPMG and the British
June spent more per head than in
June 2009.
“London’s consumers are currently
being less impacted than those in the
rest of the country in terms of levels
of confidence about the future,” said
KPMG’s head of retail Helen RETAIL Russia, which helped sustain luxury VAT rise in January would spur cus-
▲

Retail Consortium (BRC) suggests that
early clearance sales, hot weather and
rising consumer confidence con-
tributed to the jump.
However, BRC director general
Stephen Robertson warned the sales
surge could be short-lived.
“Economic uncertainty combined
with the VAT increase and public sec-
tor job cuts on the way, suggest
growth of this magnitude is unlikely
to continue,” he said.
Footfall in London shops fell 4.1 per
cent in June compared to last year,
after a small year-on-year increase in
May. The research suggested this was
Dickinson.
Tourists in the capital continued to
spend thanks to clearance discounts,
but were more cautious than in previ-
ous months. The most prolific
spenders came from Europe, China
and the Middle East, said the report.
FAST FACTS | RETAIL IN LONDON
● Retail is the third-biggest sector of the
London economy, after real estate and finance,
according to the London Retail Consortium
● The Greater London Assembly estimates that
nine per cent of London’s jobs are in retail
BY MARION DAKERS
LONDON’S West End has seen an
upsurge in high-end purchases,
though shops in the area have
bounced back at a slower rate than
the rest of the capital.
June sales in the West End shops
rose 10 per cent on last year, com-
pared to a 14.4 per cent rise in London
and a 1.2 per cent upswing in the UK
overall, according to figures from
retail group New West End Company.
Retailers in the traditional shop-
ping heartland of the capital have
reported a rise in customers from
sales. Domestic and overseas trav-
ellers have both returned to the capi-
tal in the last three months, with the
research claiming fashion, technolo-
gy and homeware were the most pop-
ular products.
New West End Company spokesper-
son Jace Tyrrell said: “Feedback from
our stores suggests that many shop-
pers are trading up to choose invest-
ment pieces with a timeless appeal.
The high spend has helped drive an
overall sales increase through June,
despite sluggish footfall for the
month.”
Tyrell predicted that the looming
tomers in the UK to splash out during
the rest of the year.
The research also suggested the big
rise in customers from the Middle
East was down to timing, as holiday-
makers visited London before the
start of an earlier-than-usual
Ramadan in August.
This translated into an uptick in
luxury hotel revenue, with the five-
star Langham hotel reporting a 20
per cent increase in bookings of its
top suite.
“The Regent Suite launched and
within weeks was already booked up
until August,” said a spokesperson.

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CITYA.M. 19 JULY 2010 News 9

Aerospace giants set to

check in at Farnborough
Seattle to an awaiting crowd just out- Likewise, defence giants such as,

▲
AVIATION
BY EMMA SADOWSKI
AEROSPACE firms will gather in
Farnborough today to launch the
industry’s largest trade show.
Boeing’s Dreamliner (above) arrived Boeing kick-started the show yester-
yesterday and SkyCat (below) owners day with the highly anticipated
Hybrid Air Vehicles will be there. arrival of its Dreamliner jet.
The 787 carrier, which has suffered
from crippling production delays,
landed after a nine-hour flight from
side of London.
Boeing’s Dreamliner has become
popular amongst airlines, with
orders from British Airways and
Thompson Airways already in the
pipeline.
While Boeing’s eco-friendly aircraft
is likely to be the centrepiece of the
week long show, rival Airbus is hop-
ing to book more than 100 orders for
its A380 jet.
BAE Systems, EADS and Northrup
Grumman will exhibit the latest in
military airplanes, intelligence vehi-
cles and fighter jets.
Hybrid Air Vehicles, which recently
partnered with Northrup Grumman,
is also hoping to sign-up a raft of buy-
ers for its “SkyCat” airship, which is
capable of hovering at 20,000 feet for
more than three weeks at a time over
battlefields.

um mer
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 The Capitalist
10 CITYA.M. 19 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

SUMMER’S SET TO SIZZLE AS CITY’S

GOT TALENT MAKES A COMEBACK
IT’S SUMMERTIME, and if you’re
looking for a ray of sunshine to pen-
etrate the daily grind of City life,
look no further. Regular readers of
this column will remember last year,
when The Capitalist whipped the
financial world into a frenzy with a
rundown of the top ten hunkiest
gentlemen and loveliest ladies the
City has to offer.
City’s Got Talent is now back by
popular demand for its second year – to decide the final line-up. (It’s a
so as the charts are exclusively cho- tough job, admittedly, but some-
sen by you, dear readers, consider body’s got to do it.)
this the first official call for nomina- To refresh hazy memories, cast
tions. your eyes over the two winners of last
Email thecapitalist@cityam.com year’s competition – Joshua
with your submissions of colleagues, Raymond, market strategist at City
friends or even yourselves – bearing Index, and Sarah Davison, who works
in mind, of course, that the elite judg- as a metals trader at Sempra, which
ing panel of lucky City A.M. staff will was recently sold by RBS to JP
need photographic evidence in order Morgan.

Josh Raymond,
left, and Sarah
Davison topped
the 2009 City
hotlists

Switch your
world of beer, ranging from a light
BEER GOGGLES Japanese lager to robust traditional
To the Old Bailey headquarters of law English ales.
firm Withers at the end of last week All good fun and a pleasant alterna-
for the latest gathering of the Young tive to the usual corporate wine-tast-
ing tips, though The Capitalist isn’t
sure about Shepherd Neame’s latest

current account
product – a beer the firm has devel-
oped specifically as a “toasting beer”.
Herbal undertones or not, cham-
pagne probably doesn’t have to worry
about being knocked off its perch any
time soon.

with confidence ALL THAT JAZZ

Finally, a heads up for jazz aficiona-
dos working in and around the
Docklands, who can look forward to
this year’s free Canary Wharf Jazz
Festival next month.
The line up has now been
Will beer be the toasting tipple of choice? announced and includes Latin jazz
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switching specialists are based right Guaranteed of stockbroker Charles Stanley. This
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three days between 13 and 15 August.
Neame had been roped in to give
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CITYA.M. 19 JULY 2010 News 11

Buckle up for more of the FTSE rollercoaster

In that time we’ve had nine consec-
utive days of gains that took us to
5,300, then a period of intense pes-
simism, triggering a plunge to a year
low of 4,805. At that point 10-year
treasury yields were firmly below
three per cent and fear was mount-
ing. Soon enough, the bulls were
CNBC COMMENT screaming that we were oversold on
ROSS WESTGATE stocks and overbought on bonds – cue
a nine per cent rally and a good start
to the earnings season, taking us back
three per cent GDP growth. Now,
many of that same group are reduc-
ing growth forecasts and cutting
their bullish stock market target.
With Europe grappling with its
debt crisis and bank stress tests at the
end of the week, US growth will be
key for market sentiment. Mike
Lenhoff from Brewin Dolphin notes
that “the loss of momentum from the
underlying economic news flow is no
sentiment booster for the risk trades
over 1.30 – not exactly what European economy is in a sorry state cannot be.
exporters were hoping for either. In that climate the high-frequency-
On the flip side, a good earnings traders and momentum boys will
season may help equities overcome remain in charge. Buckle your seat-
fears of reduced economic growth. belts, take the valium; it could be a
Roger Nightingale has been telling long bumpy summer.
me for nearly a year that companies Ross Westgate, Anchor, CNBC.
will deliver better than expected
returns by curtailing labour costs. He
thinks looking for top line sales
growth is misguided but that mar-
gins will remain intact and profits

M
AYBE you don’t have to be to near where we started. Then weak and nor are Fed minutes”. will be maintained.
schizophrenic, but it helps. In US consumer sentiment on Friday The Federal Reserve, remember, As long as we get some growth in
the last month the FTSE 100 meant the fear returned. downgraded the GDP outlook and the West and emerging markets
has oscillated madly from Prior to the recent volatility, most said consideration of more policy remain strong, the bulls might even-
optimism, to despair, back to opti- economists and strategists expected a stimulus – aka QE – might be needed. tually turn out to right. But for now
mism – before finishing Friday once self-sustaining economic recovery in All of which has caused the dollar to the magnitude of the economic weak-
again enveloped in gloom. the US that might average at least weaken and the euro to rally back ness may be debatable – but that the

Fight must go on for Five UK exports up 11 per cent on last

year but some regions see decline
ing an agreement to snap up Five for public service licence requirements
▲

MEDIA
BY VICTORIA BATES £100m, knocking back rival offers and persuading current chief execu-

SOURCES close to pan-European
broadcaster RTL Group yesterday
poured cold water on speculation
that newspaper tycoon Richard
Desmond has sealed a deal to buy its
beleaguered UK television channel
Five, calling it “wishful thinking”.
Desmond, the owner of Express
newspapers and OK! magazine, was
though to be on the brink of clinch-
from weighty names such as Time
Warner, BSkyB and Big Brother pro-
ducer Endemol. But sources familiar
with owner RTL’s thinking insisted no
deal had yet been struck and that sev-
eral interested parties are still in the
running for the channel.
Desmond is thought to have
approached UK media regulator
Ofcom last week on his plans for the
channel, which include keeping its
▲
tive Dawn Airey to remain at the
helm. However, he would also look to
implement a wide-ranging cost-cut-
ting drive at the channel, which lost
£37m last year.
Desmond’s offer of £100m is more
than some analysts had predicted,
with some saying the channel could
go for a nominal sum due to its
expensive long-term contracts with
series such as US crime show CSI.
UK ECONOMY
THE VALUE of UK exports increased
by more than 11 per cent, or £6bn,
between January 2009 and 2010,
though fortunes were mixed
throughout the country.
London saw the biggest rise in the
value of its exports, up 33.5 per cent
to £1.73bn. The West Midlands closely
followed with a 26 per cent rise.
Northern Ireland had the largest
drop, of 10 per cent or £133.5m, said
the export branch of merchant bank
Close Brothers.
During this period the number of
UK companies exporting fell by 1,948,
or four per cent.
The USA remains the top destina-
tion for UK exports, making up £8bn
or 13.3 per cent of exports in the first
quarter of 2010.

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The Royal Bank of Scotland plc (RBS) does not endorse any of the reports and other written materials provided by David Stevenson (the “Materials”) or any statements made by David Stevenson or Investors Intelligence (the “Statements”). RBS makes no warranty or
representation whatsoever, express or implied, as to the contents of the Materials or Statements. RBS shall not be liable (whether in negligence or otherwise) to any person for any error in the Materials or Statements and RBS shall not be under any obligation to advise any
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Scotland N.V. in certain jurisdictions.
 12 News
Halliwells signs Barlows deal
but could face administration
▲
LEGAL
BY EMMA SADOWSKI
FALLEN Manchester law firm
Halliwells will learn tomorrow
whether it will be forced into admin-
istration as it remained in deadlock
discussions over the weekend with a
number of rivals to sell off parts of its
business.
The firm has already struck a deal
with City insurance practice Barlow
Lyde & Gilbert, which has agreed to
buy up Halliwells’ insurance practice.
Partners at Barlows voted late last
week in support of the move that will
see more than 200 staff transferred to
its business alongside clients such as
AXA and Chartis.
The deal is one of many that
Halliwells is looking to secure in a bid
to avoid going into administration.
The stricken firm, which filed for a
second notice of intent to appoint an
administrator at the end of June, is
also in talks with Hill Dickinson and
BEST OF THE BROKERS
ANALYSIS l GlaxoSmithKline
1.300 p
1,187.50
1,250
1,200
1,150
HBJ Gateley Wareing. 1,100
A deadline of tomorrow has been
1,050
set to secure the deals before the 28 Apr 19 May 9 Jun
administrator will step in. However,
the deals are expected to be finalised ANALYSIS l Mothercare
by tomorrow and could save hun- 620 p 524.00
dreds of jobs.
Halliwells, which is one of the 600
largest legal practices to face adminis- 580
tration, suffered from a fall off of
transactional work during the reces- 560
sion.
Both firms declined to comment.
540
520
500
28 Apr 19 May 9 Jun
ANALYSIS l Royal Dutch Shell
€
23.50 21.28
22.50
21.50
20.50
19.50
26 Apr 17 May 7 Jun 28 Jun
To appear in Best of the Brokers email your research to notes@cityam.com
Timis eyeing a
switch to LSE
▲
MINING
BY STEVE DINNEEN
BUSINESSMAN Frank Timis is work-
ing on plans to move his mining
company, African Minerals, from
the Alternative Investment Market
(AIM) to the London Stock Exchange
(LSE).
Timis has previously described LSE
regulators as “a kangaroo court” but
now says he is about to hire new
directors, auditors, legal firms and
an investment bank to satisfy the
market ahead of the company’s
relisting.
Timis has previously been
penalised by regulators when he was
the head of Regal Petroleum. The
firm was slapped with a record fine
for misleading investors.
African’s LSE listing is expected to
value the company at £4bn.
The firm last week announced a
$1.5bn (£1bn) investment deal with
UK should reform its electricity
markets to attract investment
▲
ENERGY
BRITAIN must reform electricity mar-
kets if it is to secure the private invest-
ment needed to meet its carbon
emissions targets, according to a
study by KPMG.
The report, out today, said the gov-
ernment’s investment in low-carbon
generation was inconsistent and
clearer planning was needed to show
how emissions targets will be met.
CITYA.M. 19 JULY 2010
GLAXOSMITHKLINE
Evolution Securities rates GlaxoSmithKline
16 Jul
(GSK) as “buy” and believes that with the
Avandia overhang removed, 2010 should
represent a period of outperformance.
Business performance earnings per share
are forecasted as 28.1p excluding the legal
provision, and post the legal provision of
1.5p, according to Evolution, which believes
29 Jun that GSK is past its earnings trough.
MOTHERCARE
16 Jul UBS rates Mothercare as “hold” due to
international retail sales growth remaining
strong at 20 per cent. Mothercare’s earn-
ings per share were downgraded due to
poor UK trading outlook, but UBS believes
Mothercare has a strong business model
with good prospects and expects interna-
tional expansion to generate double digit
29 Jun earnings for the foreseeable future.
ROYAL DUTCH SHELL
Credit Suisse rates Royal Dutch Shell as
16 Jul “hold” and expects Shell’s earnings per
share (EPS) to increase between 2011 and
2015. Credit Suisse’s EPS estimates for the
period are broadly unchanged, and it
expects trading profits to be weaker and
refining to remain loss making, but predicts
an overall improvement with margins pick-
ing up mostly in the US.
Chinese steel-manufacturer
Shandong Iron & Steel. The money
will be used by the mining group to
develop its Tonkolili mine in Sierra
Leone, a project that chairman
Frank Timis has said could become
the largest iron ore mine in the
world.
African Minerals has previously
talked up the possibility of invest-
ment from several large mining
groups. Eurasian Natural Resources
Corporation was mooted as one pos-
sible investor, but a spokesperson for
African Minerals refused to com-
ment and talks with the firm are
said to have ended.
Controversial tycoon
Frank Timis has previ-
ously described LSE
regulators as a
“Kangaroo court”.
“Nuclear represents the least cost
low-carbon electricity generation;
however, our research indicates that
radical changes to the current elec-
tricity market will be required to
secure the large scale private sector
investment required for nuclear new
build to proceed,” said Richard Noble,
power and utilities partner at KPMG.
Britain has committed to a 34 per
cent reduction in greenhouse gas
emissions from 1990 levels by 2020.
CITYA.M. 19 JULY 2010 News 13

House price
ASKING PRICES IN ENGLAND & WALES
Increases North Yorkshire & Humberside
Decreases Avg. Price July 10 £151,510 Avg. Price July 10 £161,263
Avg. Price June 10 £152,118 Avg. Price June 10 £163,744

gains set to
from previous month Monthly Change -0.4% Monthly Change -1.5%
Avg. Price July 09 £144,431 Avg. Price July 09 £161,552
Annual Change 4.9% Annual Change -0.2%

East Midlands

be wiped out
North West
Avg. Price July 10 £168,853 Avg. Price July 10 £166,649
Avg. Price June 10 £169,819 Avg. Price June 10 £165,532
Monthly Change -0.6% Monthly Change 0.7%
Avg. Price July 09 £164,132 Avg. Price July 09 £156,708
Annual Change 2.9% Annual Change 6.3%

Rightmove said that sellers will East Anglia

▲

PROPERTY
need to continue to be more realistic
BY JESSICA MEAD
in their pricing given that the num- West Midlands Avg. Price July 10 £216,849
ALL the gains seen in property prices ber of mortgage approvals seems Avg. Price June 10 £221,944
Avg. Price July 10 £194,337 Monthly Change -2.3%
over the past six months will be rationed at around 11,000 a week
wiped out by the end of the year, compared to the consistent weekly
Avg. Price June 10 £189,049 Avg. Price July 09 £219,828
thanks to more aggressive pricing rate of around 30,000 newly market- Monthly Change 2.8% Annual Change -1.4%
and an increase in the number of ed properties. Avg. Price July 09 £189,028
houses coming on to the market, Miles Shipside, commercial direc- Annual Change 2.8%
property website Rightmove will say tor of Rightmove, said: “More aggres-
today. sive pricing is now the order of the Wales
The forecast forms part of its day, which means that conditions are
monthly survey of average asking ripe for a strong buyers’ market in the Avg. Price July 10 £170,402
prices, which revealed that new sell- second half of 2010.” He added: “This Avg. Price June 10 £168,951
ers have cut their asking prices for is likely to see the average price gains Monthly Change 0.9%
the first time this year. The 0.6 per of seven per cent for the first half of Avg. Price July 09 £169,109
cent reduction trimmed the annual the year wiped out by year-end.” Annual Change 0.8%
increase to 3.7 per cent in July from The dip in asking prices adds to the Greater London
five per cent the previous month. The wider evidence of growing malaise in Avg. Price July 10 £422,248
average property asking price now the UK housing market. The South West South East
Avg. Price June 10 £429,597
stands at £236,332, down from Nationwide survey for June showed Avg. Price July 10 £262,072 Avg. Price July 10 £304,931 Monthly Change -1.7%
£237,767. only a slight increase in house prices Avg. Price June 10 £257,502 Avg. Price June 10 £308,920
The number of unsold homes per while the Halifax survey actually
Avg. Price July 09 £402,761
Monthly Change 1.8% Monthly Change -1.3% Annual Change 4.8%
agent jumped by almost 25 per cent revealed that house prices fell last
in the first half of the year and new month. A sustained dip is not yet seen Avg. Price July 09 £248,616 Avg. Price July 09 £288,614
sellers outstripped new mortgage as likely by analysts, but substantial Annual Change 5.4% Annual Change 5.7% Source: Rightmove
approvals by five to two. gains this year have been ruled out.

DO YOU EXPECT THERE TO BE A DOUBLE-DIP IN THE UK HOUSING MARKET? Interviews by Jessica Mead

IVOR DICKINSON | DOUGLAS & GORDON LUCIAN COOK | SAVILLS DAVID ADAMS | CHESTERTON HUMBERTS

“ Supply of property in London has

been rising steadily since January as vendors
try to take advantage of rising prices. And
demand has remained consistent and we
now have almost three buyers for every
“ We are forecasting a softening in
value across all residential markets in the
second half. There has been a shift from
insufficient to excessive stocks relative to
demand. Sentiment has certainly dipped but
“ Increased lending from banks and an
interest rate of 0.5 per cent are a strong
defence against a correction as severe as
the one we saw in 2008. There is a five per
cent price correction occurring because of

” ” ”
property. With the market in relative utopia, I don’t think we are looking at a continued the increase in property following the abol-
we are not expecting a double dip. and sustained fall in prices. ishment of HIPs – no need to panic.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates in association with

KPMG Mercer Finisterre Capital

Artemis Investment Management
The fund management group has hired Giles
Parkinson as a new investment analyst, tasked
with supporting William Littlewood in manag-
ing the £567m Artemis Strategic Assets Fund,
launched by the firm just over a year ago.
Parkinson joins from Newton Investment
Management, where he has been a research
analyst for the past four years.
He is due to take up his new role in late
September.
Ferdia Byrne and Claire Farrelly have
left Towers Watson to join KPMG’s
insurance risk and actuarial practice as
a partner and associate partner.
Byrne was a principal at Towers
Watson, where he had management
responsibility for the risk consulting
team in Paris. Prior to that, he was a
partner at Ernst & Young.
In her former role, Farrelly was a
principal consultant in the insurance
and financial services practice.
The consulting, outsourcing and invest-
ment group has taken on Wayne
Fitzgibbon as a principal and senior
consultant in its investment consulting
business in London.
Fitzgibbon was previously head of
fixed income, currency and commodi-
ties at Macquarie Investment Bank in
Sydney, and more recently in London.
His career so far has spanned 15
years in investment management and
10 years as a macro-economist.
The emerging markets hedge fund has
appointed a new credit analyst in the
form of Toby Triebel, who moves over
from Alix Partners in London.
At Alix, Triebel worked in the corpo-
rate turnaround and restructuring
team. He started his career at Goldman
Sachs, where he was an analyst on the
industrials and natural resources team
and later an associate in the FICC
derivatives and debt capital markets
division.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
 14 News
Finance sector must highlight its contribution
CITY COMMENT
NICK ANSTEE
A
T a time when spending cuts,
tax increases and unemploy-
ment dominate the headlines,
leaders of the UK financial serv-
ices industry face an unprecedented
NEWS | IN BRIEF
Water firms get £3.4bn EU loans
The EU plans to lend the UK’s 10 biggest
water utilities €4bn (£3.4bn) over the next
five years, as they try to reduce the number
of customers who cannot pay their bills. UK
@
water companies including United Utilities
and Severn Trent can take out cheap loans
from the European Investment Bank to help
reduce “water poverty”. The value of unpaid
bills last year was £804m, up 16 per cent.
Managed Print Services
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challenge getting their message across that contribution is understood”.
to the public and politicians. I will be attending a parliamentary
Of course, we must recognise the reception in Westminster tonight to
real anger that continues to exist as a help do just that.
result of the mistakes made – not only Last year, the City’s contribution in
by banks and bankers I hasten to add – terms of tax amounted to £61.4bn –
during recent years. 142 per cent of the interest cost of the
But in owning up to and learning current public sector debt.
from past failings the City must not be Equally importantly, finance is the
timid about defending its relationship lifeblood of Britain’s manufacturing
with the broader economy.
That is why I was glad to hear Royal
and wider services industries. Without
funding, products go unmade while
Bank of Scotland chief executive innovation and entrepreneurial spirit
Stephen Hester highlight the “vital lack the budget needed to prosper.
contribution” made by financial serv- Understandably the government is
ices during a recent speech, and the keen to ensure appropriate levels of
fact that “it is our job to make sure lending reach SMEs up and down the
Donations drop by nearly 10 pc
The austerity mindset has dented charitable
donations this year, says research by
Investec. Hard-up workers are giving 9.6 per
cent less than a year ago, with almost a
quarter admitting to reducing their dona-
tions. Londoners have dropped their dona-
tions by 9.2 per cent. People aged 34 to 44
are most reluctant to part with their pen-
nies, with an average drop of 14.9 per cent.
MORE NEWS
ONLINE
www.cityam.com
UK insolvency down
as business picks up
ECONOMY
▲
BY EMMA SADOWSKI
INDICATIONS that the UK’s busi-
ness community is starting to sta-
bilise have come from new data
‡ Document that shows the number of company
Production insolvencies in June has declined
‡ Marketing by more than 13 per cent from last
year.
Collateral Information from data services
‡ Exhibition group Experian shows that 1,771
Graphics UK businesses failed last month
down from the 2,044 that became
insolvent in June last year.
Experian said the overall finan-
cial strength of UK businesses has
also improved but that a geograph-
ical divide between the North and
South continues to exist.
Rolf Hickman, managing direc-
INSOLVENCY NUMBERS BY REGION
Region Insolvencies June 2010
Scotland 98
North West 199
West Midlands 162
Greater London 401
South East 278
country – as demonstrated by last
Thursday’s meeting between
Chancellor George Osborne, Business
Secretary Vince Cable and bank chiefs.
The flow of credit is a vitally impor-
tant issue but more lending targets are
not the answer. There is absolutely no
point forcing banks to lend money to
those who don’t want it, or to projects
without an acceptable risk profile.
The industry has been working hard
to make sure customers know they are
open for business but deleveraging
across the economy means demand
for loans has dropped, even as supply
has remained relatively stable. Indeed,
a senior industry figure recently told
tor of Experian’s pH Group said:
“June’s data indicates that the UK’s
business community as a whole is
stabilising, however it also points
to the existence of a north versus
south divide. Businesses in the
north of England seem to be faring
slightly worse than their southern
counterparts across all industry
sectors.”
Scottish companies continue to
feel the bite of the recession as the
number of insolvencies climbed by
0.08 per cent to 98 from 73 failures
during June last year.
Businesses located in Greater
London, however, had an insolven-
cy rate of just 0.08 per cent last
month, with 401 company failures,
as the capital continues to see a
return to business confidence.
Insolvencies June 2009
INSOLVENCY NUMBERS BY SIZE
Number
of employees
73
Between 11-25 employees
277 Between 26-50 employees
210 Between 51-100 employees
444 Between 101-500 employees
301 500+ employees
CITYA.M. 19 JULY 2010
me that 85 per cent of SME applica-
tions for lending to his bank are suc-
cessful – the same ratio as in 2007.
Total lending will only grow when
the appetite for loans grows stronger.
The only way to achieve this is to
increase confidence in the business
environment so SME’s feel in a posi-
tion to take on extra credit to finance
working capital and investment.
The City is not simply the Square
Mile. This world-class industry benefits
businesses across the UK – it is up to us
to make sure politicians and the pub-
lic remember this fact.
Nick Anstee is Lord Mayor of the City of
London
The number of
businesses shut
down in June has
dropped by 13 per
cent since last year.
Picture: GETTY
Meanwhile, the number of insol-
vencies amongst the UK’s largest
businesses almost doubled last
month compared with last year as
the knock on effects of the global
downturn continued to take its
toll.
Companies employing over 500
people made up for 0.14 per cent of
the total failures in the UK last
month after 13 businesses went
under. The smallest business fared
the best and saw fewer insolven-
cies.
“Although the data hints at some
improvements, individual organi-
sations are impacted in different
ways. It is vital for businesses to
understand the circumstances of
those they are doing business
with,” said Hickman.
Insolvencies Insolvencies
June 2010 June 2009
203 298
99 115
61 60
44 47
13 7
 Markets&Investment 15

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 . . . . . . . . . . . . . . . . . . . . . . . .272.40* –8.60 314.80 231.75 COLT Group . . . . . . . . . . . . . . . .128.90 –3.20 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .50.50 –0.95 71.75 33.75 Schroders . . . . . . . . . . . . . . . . .1201.00 –14.00 1450.00 843.50
3i Infrastructure . . . . . . . . . . . . . 111.10 +0.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .557.50* +4.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .566.00 –1.50 604.50 415.75 Schroders N/V. . . . . . . . . . . . . .1002.00 –19.00 1185.00 719.00
A.B. Foods . . . . . . . . . . . . . . . .1056.00 — 1066.00 766.00 Cookson . . . . . . . . . . . . . . . . . . .426.40 –4.90 616.00 261.50 Johnson Matthey . . . . . . . . . . .1614.00* –11.00 1814.00 1172.00 Scot. & Sthrn Energy. . . . . . . . . 1192.00 — 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .126.90 –3.10 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . . 1133.00 +11.00 1165.00 536.00 Kazakhmys . . . . . . . . . . . . . . . .1024.00 –27.00 1634.00 659.50 Scottish Mortgage. . . . . . . . . . . .580.50 –4.00 623.50 400.00
Admiral. . . . . . . . . . . . . . . . . . .1410.00 –16.00 1483.00 898.00 CSR . . . . . . . . . . . . . . . . . . . . . .389.50 –2.80 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .123.30 –1.70 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .269.60 –6.20 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .107.20 –0.20 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .459.90 –7.60 539.00 290.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .220.30 –0.30 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . . .84.55 –2.45 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1483.00 +67.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .138.80 –0.90 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .576.50 –2.50 656.50 394.30
African Barr Gold . . . . . . . . . . . .577.50 –19.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .370.00 –1.00 442.30 321.25 Lancashire Hldgs . . . . . . . . . . . .527.00 +0.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1280.00* –13.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1578.00 –2.00 1639.00 520.00 De La Rue . . . . . . . . . . . . . . . . . .930.00* –5.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .573.00* –5.00 743.50 459.00 Shaftesbury . . . . . . . . . . . . . . . .384.50 –4.70 426.50 300.00
Alliance Trust . . . . . . . . . . . . . . .316.50* –1.80 352.70 270.25 Debenhams . . . . . . . . . . . . . . . . .58.25 –0.65 91.95 51.95 Legal & General . . . . . . . . . . . . . .84.10 –1.45 94.40 55.58 Shire. . . . . . . . . . . . . . . . . . . . .1478.00 +6.00 1526.00 818.00
AMEC . . . . . . . . . . . . . . . . . . . . .866.50 –12.00 891.00 634.50 Derwent London . . . . . . . . . . . .1298.00 –17.00 1490.00 900.50 Lloyds Banking Gp . . . . . . . . . . . .59.61 –2.29 75.58 44.95 SIG . . . . . . . . . . . . . . . . . . . . . . .100.60 –1.50 146.60 96.90
Amlin . . . . . . . . . . . . . . . . . . . . .417.40 –2.60 428.50 312.00 Dexion Absolute . . . . . . . . . . . . .137.00 –0.60 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .108.30 –3.60 149.10 79.25 Smith & Nephew . . . . . . . . . . . . .605.00 –8.50 700.50 438.00
Anglo American . . . . . . . . . . . .2338.50 –27.50 3015.50 1735.50 Diageo . . . . . . . . . . . . . . . . . . . 1114.00 +2.00 1176.00 870.50 London Stk Exchange . . . . . . . . .623.00 +0.50 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .139.40 –1.20 147.00 63.75
Antofagasta . . . . . . . . . . . . . . . .903.00 — 1100.00 637.00 Dimension Data . . . . . . . . . . . . .122.50 +0.70 122.80 55.00 Lonmin . . . . . . . . . . . . . . . . . . .1417.00 –29.00 2198.00 1088.00 Smiths . . . . . . . . . . . . . . . . . . . 1102.00 –7.00 1186.00 712.50
Aquarius Platinum . . . . . . . . . . .256.00 –45.50 490.00 201.00 Domino’s Pizza . . . . . . . . . . . . . .422.10 +4.70 426.00 216.00 Man . . . . . . . . . . . . . . . . . . . . . .209.40* –6.10 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .418.00 +0.60 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .304.10 –6.70 362.40 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .376.80 –7.60 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .347.50* +0.10 412.70 320.00 Spectris . . . . . . . . . . . . . . . . . . .891.50 +56.00 949.00 512.50
Arriva . . . . . . . . . . . . . . . . . . . . .768.00 +0.50 782.50 397.75 DSG Intl . . . . . . . . . . . . . . . . . . . .26.76 –0.46 39.75 21.75 Meggitt . . . . . . . . . . . . . . . . . . . .294.30 –9.60 331.00 166.75 Spirax-Sarco Eng . . . . . . . . . . .1548.00 +1.00 1591.00 851.00
Ashmore . . . . . . . . . . . . . . . . . . .268.10 –0.90 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .376.10 –9.20 438.40 250.70 Melrose . . . . . . . . . . . . . . . . . . .224.70 –2.40 251.50 100.00
Astrazeneca . . . . . . . . . . . . . . .3206.50 –33.50 3277.50 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .421.50 +7.00 499.90 271.00 Mercantile IT . . . . . . . . . . . . . . . .908.50* –3.00 1002.00 770.50 Spirent Comms . . . . . . . . . . . . . . 118.20 –1.50 127.80 60.50
Atkins(Ws) . . . . . . . . . . . . . . . . .724.00 +10.00 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .392.50* –4.50 412.40 313.50 Michael Page Intl. . . . . . . . . . . . .394.90 –3.10 461.50 242.50 Sports Direct Intl . . . . . . . . . . . . . 113.20 +0.90 134.00 77.00
Autonomy Corp . . . . . . . . . . . .1896.00 –6.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .223.60* –3.30 245.00 138.00 Micro Focus . . . . . . . . . . . . . . . .439.00 –12.40 550.00 300.90 SSL Intl . . . . . . . . . . . . . . . . . . . .882.50 –4.50 898.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1290.00* –50.00 1365.00 721.00 EnQuest . . . . . . . . . . . . . . . . . . .103.20 +0.20 112.70 87.35 Millen & Copthorne . . . . . . . . . . .435.90 –2.10 496.30 242.25 St James’s Place . . . . . . . . . . . . .236.20 –3.10 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .335.50 –7.90 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .458.20 +10.10 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .252.30 –4.20 281.70 168.75 Stagecoach. . . . . . . . . . . . . . . . .182.30 –1.20 204.90 126.20
Babcock International . . . . . . . . .622.00 –2.50 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .839.50 –3.00 1276.00 711.50 Mitchells & Butlers . . . . . . . . . . .303.00 –3.60 343.90 228.30 Standard Chartered . . . . . . . . . .1706.00 –41.00 1847.00 1187.00
BAE Systems . . . . . . . . . . . . . . .318.60 +2.10 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .595.00* –3.50 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .210.30* –2.40 281.70 198.70 Standard Life . . . . . . . . . . . . . . .192.40 +1.30 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .247.40 –2.60 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .649.00* — 664.50 446.00 Mondi . . . . . . . . . . . . . . . . . . . . .403.10 –6.10 488.00 195.50 SuperGrp . . . . . . . . . . . . . . . . .1006.00 +86.00 1010.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .284.65 –15.70 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .93.65* –0.90 96.80 74.50 Monks Inv Tst . . . . . . . . . . . . . . .283.90* –1.60 321.20 234.00 TalkTalk . . . . . . . . . . . . . . . . . . . 118.30 –0.80 147.10 106.60
Barratt Development . . . . . . . . . . .99.30 –2.90 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .253.20 –6.10 396.20 135.25 Morrison Wm . . . . . . . . . . . . . . .281.30 –1.80 306.30 247.75 Talvivaara Mining . . . . . . . . . . . .396.00 –5.30 501.50 333.00
BBA Aviation . . . . . . . . . . . . . . .195.90 –1.80 220.00 116.50 FirstGroup . . . . . . . . . . . . . . . . .371.70* –5.20 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .832.50* –1.50 893.50 617.00 Tate & Lyle . . . . . . . . . . . . . . . . .469.10* –4.30 509.00 296.00
Beazley. . . . . . . . . . . . . . . . . . . .121.00 — 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .269.20 –1.30 297.20 219.25 National Express. . . . . . . . . . . . .235.00 –6.20 256.80 148.98 Taylor Wimpey . . . . . . . . . . . . . . .26.09 –1.38 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .590.50 –3.50 927.50 580.50 Fresnillo . . . . . . . . . . . . . . . . . .1060.00 –41.00 1139.00 539.50 National Grid . . . . . . . . . . . . . . .487.60* –0.70 607.65 474.80
Berkeley . . . . . . . . . . . . . . . . . . .827.00 +5.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .267.70 –2.10 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2070.00 –7.00 2360.00 1580.00 Telecity . . . . . . . . . . . . . . . . . . . .420.00 +16.70 455.00 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1060.50 –9.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .459.00 +1.00 484.00 370.00 Northumbrian Water . . . . . . . . . .324.80 –2.10 328.90 219.90 Templeton Emrg Mkts . . . . . . . . .531.00* –7.50 598.00 367.75
BHP Billiton . . . . . . . . . . . . . . . 1811.50 –13.00 2346.00 1411.00 GKN . . . . . . . . . . . . . . . . . . . . . .131.50 –0.80 155.00 78.00 Old Mutual . . . . . . . . . . . . . . . . . 112.00 –0.90 127.20 84.14 Tesco . . . . . . . . . . . . . . . . . . . . .396.50 –5.75 454.90 361.20
BlackRock Mining . . . . . . . . . . . .533.00 –10.00 654.50 375.00 GlaxoSmithKline . . . . . . . . . . . . 1187.50 –15.50 1347.00 1088.00 Partygaming . . . . . . . . . . . . . . . .237.30 +2.30 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .190.80 –5.10 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .42.00 –0.37 49.50 33.00 Great Portland Estates . . . . . . . .298.00 –2.00 332.10 215.00 Pearson . . . . . . . . . . . . . . . . . . .925.00 –11.50 1069.00 603.00 Tomkins . . . . . . . . . . . . . . . . . . .230.30 –3.40 261.10 153.50
BP . . . . . . . . . . . . . . . . . . . . . . .407.15 +5.40 658.20 296.00 Greene King . . . . . . . . . . . . . . . .444.70 –3.70 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .573.00 –8.00 584.00 434.40 Travis Perkins . . . . . . . . . . . . . . .799.50 –9.50 915.00 609.00
Brit Insurance . . . . . . . . . . . . . . .899.00* –5.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . . 511.50* –6.00 562.50 322.25 Persimmon . . . . . . . . . . . . . . . . .377.60 –8.10 534.50 340.20 TUI Travel . . . . . . . . . . . . . . . . . .220.40 –4.20 313.90 202.30
British Airways . . . . . . . . . . . . . .203.80 +0.20 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .287.50 –0.10 298.70 184.00 Petrofac . . . . . . . . . . . . . . . . . .1281.00 –12.00 1317.00 703.00 Tullett Prebon . . . . . . . . . . . . . . .335.50 –3.50 436.20 261.20
British Amer. Tob . . . . . . . . . . .2265.50 –4.00 2335.50 1735.00 Hammerson . . . . . . . . . . . . . . . .362.40 –5.50 460.30 297.75 Petropavlovsk . . . . . . . . . . . . . . 1170.00 –28.00 1370.00 584.50 Tullow Oil . . . . . . . . . . . . . . . . . 1139.00 –4.00 1375.00 913.00
British Empire Tst . . . . . . . . . . . .422.00 –4.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .332.00 –5.30 387.00 204.50 Premier Farnell . . . . . . . . . . . . . .235.00 –4.70 252.60 127.50 UK Commercial Prop. . . . . . . . . . .79.15 –1.05 84.90 62.25
British Land . . . . . . . . . . . . . . . .443.20* –5.60 532.00 382.75 Hays . . . . . . . . . . . . . . . . . . . . . . .95.30 –0.70 119.00 83.25 Premier Oil . . . . . . . . . . . . . . . .1450.00 +4.00 1502.00 984.00 Ultra Electronics . . . . . . . . . . . .1561.00 — 1678.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .507.00 –1.50 516.50 307.00 Henderson . . . . . . . . . . . . . . . . .123.50 –2.30 157.80 88.25 Provident Financial . . . . . . . . . . .865.50 –1.00 986.00 786.00 Unilever . . . . . . . . . . . . . . . . . .1882.00 –12.00 2024.00 1480.00
Brown(N.) . . . . . . . . . . . . . . . . . .245.10* +3.30 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .431.90 –0.30 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .522.00 –13.00 665.00 383.50
BSkyB . . . . . . . . . . . . . . . . . . . .697.50 –2.00 732.00 489.25 Hikma Pharma . . . . . . . . . . . . . .726.00 +5.50 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .342.20 — 356.80 210.00 United Utilities . . . . . . . . . . . . . .555.00* –3.00 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .139.40 –0.40 151.00 104.85 Hiscox . . . . . . . . . . . . . . . . . . . .346.30 –3.30 369.30 290.00 Qinetiq . . . . . . . . . . . . . . . . . . . .125.20 –1.50 179.10 113.90 Utd Business Media . . . . . . . . . .526.50 –6.50 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .706.00 –8.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .291.70 –8.20 370.60 220.00 Randgold Resources. . . . . . . . .5970.00 –200.00 6600.00 3351.00 Vedanta Resources . . . . . . . . . .2203.00* –35.00 2967.00 1417.00
Burberry . . . . . . . . . . . . . . . . . . .799.50* +9.00 827.50 419.75 Home Retail . . . . . . . . . . . . . . . .230.60* –1.30 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3248.00 –3.00 3667.00 2686.00 Victrex . . . . . . . . . . . . . . . . . . . 1147.00 –7.00 1193.00 588.50
Cable & Wire Comms . . . . . . . . . .57.20* –0.60 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2104.00* –16.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .516.50 –6.00 548.00 403.75 Vodafone . . . . . . . . . . . . . . . . . .144.35* –1.00 153.80 112.30
Cable & Wire Wwide . . . . . . . . . . .84.70* –2.00 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .621.60 –15.90 766.80 525.55 Regus . . . . . . . . . . . . . . . . . . . . . .73.25 +0.50 125.50 66.25 Weir . . . . . . . . . . . . . . . . . . . . . 1176.00 –11.00 1229.00 485.25
Cairn Energy. . . . . . . . . . . . . . . .449.40 –7.10 479.20 306.80 Hunting . . . . . . . . . . . . . . . . . . .503.00 +1.00 659.50 395.75 Rentokil Initial . . . . . . . . . . . . . . . 111.10 +0.10 140.20 86.50 WH Smith . . . . . . . . . . . . . . . . . .422.20 –1.20 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1585.00 –1.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .405.90 –2.80 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .69.00 –1.85 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1435.00 –14.00 1645.00 808.00
Capita . . . . . . . . . . . . . . . . . . . . .749.00 –6.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .463.60 –9.20 485.30 262.25 Rexam . . . . . . . . . . . . . . . . . . . .319.80 +0.60 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .181.50 –0.90 217.80 160.50
Capital & Counties . . . . . . . . . . . 112.20 +2.20 125.40 99.60 Imagination Tech Gp . . . . . . . . . .325.90 –0.50 334.60 138.25 Rightmove . . . . . . . . . . . . . . . . .630.00 +6.00 729.00 350.00 Witan Inv Tst . . . . . . . . . . . . . . . .436.90 –1.60 487.00 343.50
Capital Shopping Centres . . . . . .324.00 –2.80 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .715.50 –2.00 756.50 281.75 Rio Tinto . . . . . . . . . . . . . . . . . .3005.00 –25.50 4104.00 2057.50 Wolseley . . . . . . . . . . . . . . . . . .1364.00 –40.00 1742.00 1073.00
Carillion . . . . . . . . . . . . . . . . . . .319.80 –3.70 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1961.00 –9.00 2159.00 1614.00 RIT Capital Partners . . . . . . . . .1203.00 +3.00 1215.00 904.00
Carnival . . . . . . . . . . . . . . . . . .2177.00 –38.00 2937.00 1649.00 Inchcape. . . . . . . . . . . . . . . . . . .290.00 +2.00 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .579.50 +2.50 631.50 363.00 Wood Group (John). . . . . . . . . . .339.00 –8.20 411.70 249.25
Catlin . . . . . . . . . . . . . . . . . . . . .378.40 –0.70 386.30 300.25 Informa . . . . . . . . . . . . . . . . . . . .360.10 –4.10 439.40 225.00 Rotork . . . . . . . . . . . . . . . . . . .1406.00* +16.00 1482.00 805.50 WPP . . . . . . . . . . . . . . . . . . . . . .642.50 –9.00 744.00 410.50
Centamin Egypt . . . . . . . . . . . . .153.30 –3.50 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .720.00 –17.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .43.71 –1.49 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .908.60 –13.40 1344.50 649.40
Centrica . . . . . . . . . . . . . . . . . . .309.20 –1.60 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1108.00 –12.00 1244.00 604.00 Royal Dutch Shell A . . . . . . . . .1794.50 –10.50 2068.50 1497.00 Yell Group. . . . . . . . . . . . . . . . . . .26.57 –0.10 86.00 21.50
Charter Intl . . . . . . . . . . . . . . . . .693.00 +1.00 855.50 468.25 Intermediate Capital . . . . . . . . . .259.00* –5.60 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1722.00 –9.00 1997.50 1502.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2988.00* –7.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1636.00 +2.00 1667.00 1024.00 RSA Insurance . . . . . . . . . . . . . .123.20 –0.80 142.00 114.10
Chloride Group . . . . . . . . . . . . . .371.50* — 390.50 130.75 Intl Power . . . . . . . . . . . . . . . . . .316.80 –2.70 354.00 243.00 SABMiller . . . . . . . . . . . . . . . . .1921.50 –4.00 2090.00 1293.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .697.00 –4.00 806.50 653.00 Invensys . . . . . . . . . . . . . . . . . . .265.30* +3.50 350.30 232.25 Sage . . . . . . . . . . . . . . . . . . . . . .236.30 –5.70 260.50 176.20
Cobham . . . . . . . . . . . . . . . . . . .234.70 –1.40 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .473.20 –4.40 565.00 356.00 Sainsbury(J) . . . . . . . . . . . . . . . .347.00* –1.80 373.00 307.60 www.interactivedata.com

Nervy markets ahead of bank stress test results

ket open this morning, that means the tests, with the remainder subject ANALYSIS l FTSE
MARTIN ON erring to the downside.
GFT is quoting the FTSE 100 index
to relatively modest demands to
replenish their capital. Nevertheless
5,800

5,600
5,158.85
16 Jul

THEMARKETS to open down 28 points from Friday’s

close, at a level of 5,130. The German
DAX is also expected to start lower,
it’s difficult to see investors commit-
ting much money to stocks before
the results are known, and just as
5,400

5,200
down 20 points at 6,020, and the hard to foresee a sustained post-
French CAC is forecast to open down results relief rally; whilst the publi- 5,000
15 points at 3,485. cation is unlikely to throw up any
4,800
obvious concerns, at the same time
STRESS TEST RESULTS DUE it is unlikely to be that magic bullet
19 Apr 10 May 28 May 18 Jun 8 Jul
The markets will have to wait until to finally draw a line under investor
Friday for the stress test release, concerns about Europe. ANALYSIS l Dax
6,400
when 91 banks from 20 countries Martin Slaney is director of global deal- 6,040.27
representing 65 per cent of the ing operations for GFT. 6,300 16 Jul
region’s banking sector will reveal 6,200
MARTIN SLANEY just how prepared they are for
another economic downturn in the
6,100
6,000
next two years or even sovereign 5,900

E
XPECT a lot of talk and even defaults. Not much is known about
5,800
more nerves ahead of the the criteria and methodology being
European bank stress test used in the tests. But market hopes 5,700
results this week. For the mar- overall are that most banks will pass 28 Apr 18 May 7 Jun 25 Jun 15 Jul

WALL STREET WEEK AHEAD

A
FTER ugly economic data and back into a positive mode after stocks merely hit a soft patch or was primed a tight range after it failed to hold its the Nasdaq shed 0.8 per cent.
an unexpected downturn in dropped nearly 3 per cent on Friday. for a double-dip recession. 50-day moving average, now near This week’s earnings will include
sentiment on quarterly earn- Minutes of the Federal Reserve’s “It doesn’t mean the market can’t 1,090, after closing above it for two results from 12 Dow components, as
ings, Wall Street will face a June meeting got the market seriously rally, but the structural problems are days. The Nasdaq Composite, mean- well as quarterly scorecards from
tough time battling back from the lat- worried last week after officials said there and there is no doubt about it,” while, failed in its attempt to break its financial powerhouses Goldman Sachs
est sell-off. they were more concerned with the said Joe Saluzzi, co-manager of trading 200-day moving average, but has sup- Group and Morgan Stanley, along
Technology and banking results will pace of the economic recovery. at Themis Trading in Chatham, New port around its 14-day moving average with tech bellwethers Apple, Texas
once again shape investor mind-set in A raft of disappointing data on con- Jersey. at 2,171. Instruments and Qualcomm.
a week dominated by a blitz of quarter- sumer sentiment and factory activity From a technical perspective, the For the past week, the Dow Jones For the second quarter, earnings are
ly earnings. did not help, prompting questions last picture is even less certain. The industrial average lost 1 per cent, expected to increase 28 per cent from
But it will be a tough job to shift week on whether the economy had Standard & Poor’s 500 Index is stuck in while the S&P 500 slid 1.2 per cent and the year-ago period, according to data.
 16 Investment | Spread Betting CITYA.M. 19 JULY 2010

Trade volatility
if you want to
take a view on
the markets
Increasingly, risk sentiment is dominating
price movements, writes Kathleen Brooks

W
HEN people think of volatility,
images of falling stock prices,
anxious traders and massive
losses come to mind. But
spread betters should use periods of
volatility as an opportunity.
Most spread betting companies allow
traders to take a position on volatility –
usually by betting on the Vix index,
which measures the implied volatility of
options on the S&P 500. So why trade it?
If you think the market has risen too far
then you should go long volatility. For
example, if the market is not properly
pricing in all of the downside risks and
volatility is low, then you should think
about taking a long position.
You can see this on the chart below.
Volatility fell consistently from the start
of this year through to the end of April,
which mirrored the peak in the markets:
in February the FTSE 100 was hovering
around the 5,100 mark, before peaking at
5,800 in late April. But May and June
were a bloodbath as the markets reacted
to the European financial crisis and
headed south, reaching a low of 4,800 at
the end of June.
RISK APPETITE
But can you use volatility as a way to pre-
dict market movements? Yes, says David
Jones from IG Index: “It’s another way to
take a directional view on the markets.”
A recent report from Moody’s has sug-
gested that sentiment (another way of
describing volatility) is coming to domi-
nate market behaviour.
It notes that the yields on junk bonds
and the Vix have become positively corre-
lated in the past decade. In the past, high
yield bond prices were often driven by
fundamentals, but now they are more
and more driven by market sentiment.
Hence, financial markets can move high-
er or lower based on the appetite for risk.
For example, the markets soared from
March 2009 even though Western govern-
ments were racking up unsustainable
levels of debt, which the market only
started to price for in May this year.
TRADING OPTIONS
Trading volatility is also getting easier. you win. Binaries are always settled at Markets can be a you can only lose what you put down in
You don’t just have to trade the Vix to get 100, regardless of how far the index hair-raising ride the first place.
exposure to market sentiment; you can moves, so if you buy the binary used in If risk appetite is starting to dominate
also trade options. If volatility is high this example at 35, then your upside is 65 Picture: GETTY market movements, then spread betters
then options prices rise and vice-versa. points. One of the attractive features of a should be comfortable trading voltility as
Jones says that it’s better to stick with binary is that you have a fixed loss and any other asset class.
trading options on big stock indices such
as the FTSE 100 rather than individual ANALYSIS l Volatility has spiked recently (Vix index)
companies, since volatility tends to
100
reflect overall market sentiment. You can
also trade currencies, for example US dol- 80
lar-sterling, euro-US dollar and US dollar-
yen, which are deeply sensitive to risk 60
appetite.
Periods of low volatility can be deeply
frustrating for spread betters since they
40
suggest that markets will keep moving in
the same direction (usually upwards). But
volatility can be created by using binary
trades. Jones explains that binary bets
are a yes or no proposition.
So if the FTSE is trading at 5,200, and 20
you expect it to finish up on the day then
you would buy the binary. If you are cor- Sep 08 Jan 09 May 09 Sep 09 Jan 10 May 10
rect and the FTSE finishes at 5,220 then

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CITYA.M. 19 JULY 2010
Don’t bet on strong bank earnings
Despite earnings meeting market
expectations, Wall Street is still
not gaining, says Juliet Samuel
R
EACTIONS were mixed as the first of
the season’s US bank earnings rolled
in last week. Some analysts – like
GFT’s David Morrison – were blam-
ing poor revenue growth reported by
Citigroup and Bank of America-Merrill
Lynch (BoA-ML) on Friday for the subse-
quent dip in the S&P 500 as it plunged 2.09
per cent in less than two hours.
Morrison thinks that the failure of banks
to significantly grow revenues highlights
that the stimulus programme is wearing
off to leave a very weak set of fundamen-
tals. He adds that earnings figures are
being flattered by very low expectations.
Others, however, explained Friday’s drop
as showing the unimportance of second
quarter earnings in the context of the US’s
continuing weakness. “Investors are more
concerned about the US economy than
they are about earnings,” says CMC
Markets’ Michael Hewson. “Earnings are
rear-view mirror stuff – the last quarter.
We’ve seen Citi and JP Morgan beating
expectations yet we are quite a lot lower.”
Whether or not this week’s rash of US
bank earnings figures (see calendar) will
have any bearing on the stock markets,
spread betters can attempt to target earn-
ings directly by betting on bank equities.
BoA-ML’s stock price declined over 7 per
cent on Friday, for example, while Citi fell
3.7 per cent in early-morning US trading.
This was despite both banks meeting expec-
tations – but this only shows how pes-
simistic the markets are: BoA-ML’s net
profit was down 1.85 per cent on the previ-
ous quarter, while Citi’s net profit plunged
39 per cent on the first quarter of 2010.
But exceeding expectations and increas-
ing profits seemed to have little more effect
than meeting them. Despite JP Morgan’s 44
per cent rise in profits on last quarter,
announced Thursday, the bank was swept
up in Friday’s falls, albeit less than its rivals.
So figures might provide some insulation
but are not enough to outweigh macroeco-
nomic factors.
Moreover, investment banking revenue
was down on the first quarter for both Citi
and JP Morgan (36 per cent and 23.8 per
cent respectively). This does not bode well
for this week’s Goldman Sachs and Morgan
Stanley releases as they rely more heavily
on investment banking income.
But this does not explain the Friday sell-
SPREAD BET
GURU
JOSHUA
RAYMOND
MARKET
STRATEGIST
josh@cityindex.com
Q.
Dear Josh, what are the main
weightings behind the FTSE 100
index?
A.
The FTSE 100 is a weighted index
of the leading 100 companies, as
measured by market value, that are
listed on the London Stock Exchange.
As you might expect, the companies with
the highest market capitalisation have the
highest weighting on the FTSE 100 index,
and therefore have a stronger grip on where
the FTSE moves.
According to Bloomberg statistics, HSBC
has the highest weighting on the UK’s
Even solid figures
might not make a
difference despite
hard work on Wall
Street
Picture: GETTY
off. It could be that the Financial Reform
Bill, which included a ban on banks’ propri-
etary trading and increased capital require-
ments, caused investors to turn bearish on
the sector. But the likelihood is that the
outlook for US banks is more closely tied to
the fortunes of the US economy as a whole
than to earnings or regulation. In particu-
lar, bank stocks are likely to be affected by
the property market, to which many
lenders still have an unknown exposure.
Some see this as a reason to be more opti-
mistic. Charles Schwab’s Kully Samra says
that banks’ property market loans might
not be as toxic as some predict. He says:
“Mortgage delinquencies are actually down
7.5 per cent from 2009’s fourth quarter –
the first drop in over two years.”
In the short-term, however, there are few
signs of a full-blown housing recovery and
many unknown factors are still at play on
bank balance sheets. That might mean that
even if we see a stellar season of earnings,
banks will fail to shake off the gloom.
benchmark Index (8.14 per cent) while BP,
Vodafone, Royal Dutch Shell A shares and
pharmaceutical giant GlaxoSmithKline make
up the top five stocks. Schroders has the
lowest weighting on the FTSE of just 0.04
per cent. From a sector point of view, there
are three key heavyweight sectors that his-
torically dictate whether the FTSE is having
an up, flat or down day – the mining, energy
and banking sectors.
Last Friday’s session was a perfect exam-
ple of this. The energy and mining sectors
were higher by over 1.5 per cent, but gains
were kept on a leash by a weaker banking
sector, which closed down by 0.8 per cent.
Having a greater understanding of the
mechanics behind the FTSE 100 Index is
crucial in helping you to trade it.
Q.
Dear Josh, why do low volumes
make the markets more volatile?
A.
You only have to look at the markets
over the last few weeks to see how
low volumes can affect volatility.
There are a few arguments flying around as
to why this can happen.
My personal argument is that when mar-
ket volumes are low, it only takes one trade
that is bigger than the average market size to
move the whole market because it is a
Investment | Spread Betting 17
CALENDAR | EARNINGS 19-22 JULY
Monday 19 July
Texas Instruments – US
IBM – US
Eurotunnel – France
Tuesday 20 July
Enterprise Inns – UK
William Hill – UK
Severn Trent – UK
Apple – US
BNY Mellon – US
Johnson & Johnson – US
Yahoo – US
Goldman Sachs – US
Hermes – France
Alstom – France
Accor – France
Wednesday 21 July
Blacks Leisure Group – UK
GlaxoSmithKline – UK
Coca-Cola – US
Manpower – US
Starbucks – US
eBay – US
BlackRock – US
Wells Fargo – US
Morgan Stanley – US
Having offered a humble apology to
THE TIPSTER competitor Easyjet last week, Ryanair's
interim management statement will be
RESULTS SEASON PUTS UK under scrutiny tomorrow. The airline has
performed well throughout the economic
FIRMS IN THE SPOTLIGHT downturn. But as saturation points
approach, the talk now is of a switch to
paying dividends. If it becomes a cash cow,
then the shares could quickly become pop-
ular but don’t forget the lingering uncer-
O
IL giant BP has been trading at levels tainty over where oil prices continue to go.
that have been described as an excel- Ryanair is trading at, and the current IG
lent buy opportunity. And with the Index price is €3.8012-€3.8088.
well-head in the Gulf of Mexico Severn Trent is reporting on Tuesday
capped, the share price is spurting higher and it has benefited from being a tradition-
although the company could still be seen as a ally defensive stock during times of uncer-
bid target. tainty and financial worry. Its share price
Interim results on 27 July will be closely has done very well in the past 12 months
followed as traders look for indications of and it could have further to go. Capital
BP’s total liabilities and for updates on asset Spreads is currently quoting 1,282.3p-
disposals to foot the bill. The current IG 1,285.7p.
Index price is 406.74p-406.56p. Jessica Mead
Coca Cola is hoping greater percentage of the volume. update from Texas Instruments. Tuesday is
for fizzy profits on In contrast, when volumes are at normal a big day with Goldman Sachs, Yahoo and
Wednesday levels, one large trade will be a much larger Apple all reporting.
percentage and have a significantly greater On Wednesday we will get updates from
Picture: REUTERS effect on the security being traded. eBay, Morgan Stanley, Coca Cola and Wells
Fargo as well as from Fidelity and
Q.
Dear Josh, what are the key com- Starbucks.
panies reporting next week? Amazon, American Express, Capital One,
Caterpillar and Microsoft are among the
highlights on Thursday.
A.
Earnings season continues full We finish the week with McDonalds and
steam ahead this week. IBM kicks Verizon. There’s certainly lots to focus on
us off today and we will also get an this week.
 Lifestyle
18
The Cornwall
haven that’s just
for grown-ups
A luxury eco-hotel has transformed the coast
of Mawgan Porth, says Zoe Strimpel
T
HE Scarlet. Where to begin? The 37-
bedroom eco-hotel in Mawgan Porth,
northern Cornwall, is a nexus of cut-
ting-edge green technology and style;
of character and sleekness. It’s cosy yet min-
imalist; an architectural statement yet com-
pletely at one with its environment.
Of all the above, the latter is the most
impressive. The boundary between inside
and outside feels seamless, and when you
are outside, for example on the ter-
race overlooking the cliffs and
sea, you feel like you’re part
of a sculpture garden.
The presence of a
green, natural sweet
water swimming
pool complete
with algae and
plants, is part of
this. The
ergonomic
shape of the
chairs – like bent
jelly beans – is
another.
We were lucky
with the weather
and made our way
through verdant south-
ern valleys in scorching
sunshine, finally pulling into
the shady driveway of the Scarlet
five hours after leaving London. After being
shown to our room by an employee fond of
the word “cool” (this is Cornwall, after all),
we made immediately for water, starting
with a dip in the indoor pool, a glassed-in
sun-trap. Then, sunning ourselves dry in
the early evening light on the terrace, we
decided to try the natural pool. It was freez-
ing. But beautiful: swimming in a natural
pool with its own elegantly arranged
plantlife and the odd bird perching, on a
clifftop vantage point overlooking a yawn-
| Travel
ing beach, flower-dotted valleys and the
Atlantic Ocean stretching far away, is an
intoxicating thing to do.
We sat peacefully and read for a bit on
some sprawling loungers; other couples
were sleeping, reading, sunbathing on the
stone floor; others were taking in the lower-
ing sun from some seaweed-infused, wood-
burning hot tubs perched on the edge of
the terrace (of which more later). It was a
scene of rare tranquility, the hotel
bringing guests into harmony
with nature. Children aren’t
allowed to stay at the
Scarlet (families can
stay next door at the
Bedruthan Steps
Hotel). Hence the
blissful calm.
Our “unique”
room was all
nutty hues of
beige and tan,
with attractive
tilework, colours
and materials that
continue the sense
of nature. There are
a few impracticalities
(others might see them
as bonuses): a deep bath in
the centre of the room (don’t
count on privacy, and you might
splash the bed when you get out); a shower
without a door or curtains, and no fridge or
minibar. I had some medication I needed
kept cold so had to put it in the reception’s
fridge; meanwhile the blueberries we
brought with us went off in the heat.
Some rooms have terraces that look over
the sea. Ours didn’t, so instead, we had an
extraordinary little look-out pod. Stairs in
the room led up to a little closed-in cham-
ber (also a sun-trap so too hot for us, but
probably heaven in the winter), with a bean-
The bed and bathroom
areas of a “spacious” room.
One of the seaview bag, a startling sea view, and nothing else.
terraces at the Bathed and clean, we decided to eat at
Scarlet. Jamie Oliver’s Fifteen around the bend at
Watergate Bay. It had great views, but
rather disappointing food. So we were
primed and ready to fall in love with the
Scarlet’s culinary offerings, which began
the next morning, with locally-sourced
delights, including Cornish tea, local jam
and home-made bread.
Between breakfast and dinner (and a
good lunch at a café right on Watergate
Bay Beach called the Beach Hut), we had a
busy schedule of sunbathing, walking the
flower-dotted hillop path that winds along
the coast, more sunbathing, and a stroll
round chef Rick Stein’s super-cute king-
dom of Padstow, about 10 km from the
Scarlet.
At five o’clock we took up the hotel spa’s
offer of having a seaweed hot tub soak our-
selves, and settled into the murky pool of
hot water, enthralled by the sensuality of
bathing outdoors on a cliff looking over
the sea. Medicinal seaweed is kept in a net-
ted bag, and the effect on the skin – after
the pores have been opened by the hot
water – is softening and therapeutic. We
chose to sip blueberry cordial and natural
cola (there’s no Coke here), brought to us
We settled into the hot tub, enthralled by
the sensuality of bathing outdoors on a
cliff overlooking the sea
CITYA.M. 19 JULY 2010
by a lovely graphic designer-turned-butler,
whose job is to stoke the hot tubs’ fire and
bring guests drinks.
In a state of near trance-like relaxation,
we headed down for dinner as the sun set,
and enjoyed a selection of seasonal, sophis-
ticated fare. Expect the daily changing
menu to deliver some real treats; our fish –
particularly the pan-fried John Dory with
Cornish earlies – was perfect.
The Scarlet is the ultimate grown-up’s
retreat and provides a full sensory experi-
ence the likes of which you’ll be hard-
pressed to find elsewhere. Double rooms from
£270. www.scarlethotel.co.uk.
THE SCARLET | ECO CREDENTIALS
l Solar panels to heat the indoor swimming pool
l A biomass boiler, run on sustainable wood
chips, to heat the hotel
l Natural ventilation system rather than air-con-
ditioning units
l Plentiful insulation throughout the hotel,
reducing heat loss
l Electricity supplied by Ecotricity ensuring it
comes from a renewable energy source
l Staff are encouraged to car-share
l Grey water harvesting (waste water from
showers etc)
l Rain-water harvesting
CITYA.M. 19 JULY 2010 THE CAPITAL 19
READ OUR REVIEW
IN TOMORROW’S
FOOD & DRINK

OTHER CORNWALL GEMS BY TIMOTHY BARBER TRAVEL NOTES

THE NARE ZOE STRIMPEL
This hidden gem of a hotel, in a quintessentially English country house,
boasts spectacular views over Carne Beach, near Truro. It’s an independent,
family-owned slice of boutique luxury with cosy-chic rooms, a gorgeous out-
door pool, a beautiful spa and its own croquet pitch. The hotel also has its
own yacht that guests can hire. Double-view family room £178 per adult
per night and £89 per child per night, including breakfast, morning tea,
afternoon cream tea and dinner. www.narehotel.co.uk

THE CORNWALL
Opened earlier this year, The Cornwall Estate lies amid rolling fields near St
Austell, and includes a luxury hotel, a spa, and rustic, eco-friendly holiday
home lodges. You can rent those, but they’re also available to buy (owners
can then lease them back to the hotel). There are some truly spectacular
rooms in The White House – the old manor house and hotel focal point.
Wellness never looked so good.
There’s also a complex of contemporary rooms, a couple of restaurants and
a great spa. From £74.50 per night. www.thecornwall.com The ultimate wellness holiday service to launch
Desperate to recharge your batteries but tired of the usual yoga holidays? Enter Electric
Bloom, a new, much buzzed-about wellness travel company launching in August. Traditional
ST AUBYN ESTATE wellness activities – such as yoga, trekking and Pilates – are combined with fabulous locations
The St Aubyn family, whose home is the famous island fortress St and “uplifting” experiences such as opera outings, supper with the Masai warriors, or a memo-
rable encounter with nature. One example is the “Spafari” – a holiday that combines a safari
Michael’s Mount, owns eight self-catering holiday homes in their with spa treatments in Kenya. To book, email info@ electricbloom.co.uk, or call 020 8442 1364.
5,000 acre estate (which is an Area of Outstanding Natural www.electricbloom.co.uk will be live from 1 August.
Beauty). Each with its own rugged Cornish garden, fabulous sea
views and, of course, names like Faraway Cottage and Three
Chimneys, they’re the essence of glorious isolation.
www.staubynestates.co.uk

WATERGATE BAY
The Hotel at Watergate Bay overlooks three miles of golden sand on
Cornwall’s north coast. You can pad about and relax on the beach, or you
can do something a bit more adrenaline-packed – the hotel also calls itself
an “Extreme Academy”. You can try surfing, kite-surfing, wave skiing, trac-
tion kiting (whatever that may be) or any number of other activities. In
September the hotel’s hosting a day of polo on the beach. Rooms from £180
during high season. Book a minimum three nights and get two days of surf-
ing at the Extreme Academy for £40 per person, or £30 for under 16s,
including two two-hour surf lessons. www.watergatebay.co.uk Embrace Beiruti cool at Le Gray this Ramadan.

Spend Ramadan in style in Beirut

CORNWALL: WHAT TO DO
If you’re looking for beautiful beaches away from the crowds,
one of the loveliest is Whitesands Beach at Sennen Cove near
Land’s End, where the waves create perfect surfing, dolphins
can be often be spotted and the atmosphere of the old fishing
village still remains. The remote Kynance Cove and beautifully-
named Porth Joke beaches are also worth discovering.
Cornwall offers arguably the finest coastal walking in the
UK. Rugged cliffs, ancient history – including the picturesque
cliff-top ruins of Tintagel Castle – and remote beauty make for
ideal hiking. Inland, it’s also worth hiking via the mysterious
Stone Age and Bronze Age monuments that punctuate the
moorlands, including the Men-an-tol holed stone and the Nine
Maidens Stone Circle.
Cornwall’s most famous tourist destination remains the
Eden Project (www.edenproject.com), the glass-domed conser-
vation project that’s also managed to become a rather notable
music venue. Also worth a visit are the Lost Gardens of
Combine luxury with a great cultural/religious experience at Beirut’s swanky new boutique hotel, Le
Gray. The Ramadan package includes a Souhour for those fasting, access to the PureGray Health
Heligan (www.heligan.com), the marvellous botanical gardens Club and Spa and roof-top swimming pool, and fresh fruit and flowers in the room. The hotel’s
with origins dating back to the 18th century, and the sub-tropi- restaurants and bars will offer special Ramadan menus – the elegant Gordon’s Café will add a tradi-
cal beauty of Trebah Garden (www.trebah garden.co.uk). If tional Iftar menu on a daily basis and room service will serve both a Souhour and an Iftar menu.
Ramadan Package from $345 in a Deluxe room based on two people sharing. Valid 11 Aug–7 Sep
surfing doesn’t provide you with enough of an extreme thrill, 2010. To book, call +961 1 96 28 28 or go to www.campbellgrayhotels.com.
Adrenalin Quarry (www.adrenalinquarry.co.uk) has the UK’s
biggest zip wire, and can also get you jumping off cliffs, swim-
ming wild and driving hovercrafts.
Cornwall has a rich cultural history – the early 20th century
art scene in St Ives drew the likes of Ben Nicholson, DH
Lawrence and Barbara Hepworth. The latter’s house is now a
terrific museum filled with her sculptures, while the Tate St
Ives is one of the foremost art galleries in the country (for
both, visit www.tate.org). Perhaps the most extraordinary cul-
tural venue is the Minack Theatre (www.minack.com), an
open-air theatre carved out of the cliff face just four miles
from Land’s End. Plays run here throughout the summer.
Timothy Barber

Discover the extraordinary cultural riches of Jerusalem.

Holiday in the Holy Land with new Discover Israel tour

Superstar Holidays, El Al Israel Airlines’ subsidiary, has launched a fabulous new package for those
who want to thoroughly experience Israel’s cultural and historical splendours. Week-long tours are
led by supremely well-informed, friendly local guides, who will help you explore Jerusalem’s old city.
You’ll also see Mount Zion, the Western Wall, Stations of the Cross, and far more. Then you’ll go to
the biblical strongholds of Massada, the Dead Sea and the Sea of Galilee, Nazareth, Jericho and Acre;
and to Haifa, Tel Aviv and Jaffa. £1,067 per person, including flights with El Al, half-board for seven
nights, transfers and entrance fees. To book, call 020 7121 1500, www.superstar.co.uk.

Mandarin Oriental Singapore’s idyllic new swimming pool

Singapore’s premier business hotel has a new and improved swimming area that will make
your stay more like holiday than work. The revamped 25-metre pool, with Italian glass mosaics
and underwater benches, is surrounded by a lush tropical landscape with views of Singapore’s
skyline. Lining the upper deck of the swimming pool are five well-appointed, Oriental-inspired
private cabanas, each one equipped with controlled dimmer lighting, a ceiling fan, iPod dock,
Wi-Fi connectivity and an on-call button for the food and beverage service. The perfect office,
in other words. www.mandarinoriental.com/singapore.
 20 Lifestyle | TV& Games CITYA.M. 19 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm Regional News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away:
Marilyn looks forward
TV PICK
Programmes 6.30pm Antiques Road Trip 7pm Emmerdale 7pm Channel 4 News to her date with Sid.
7pm The One Show 7pm Victorian Pharmacy: 7.30pm Coronation Street 7.55pm 4thought.tv 6.25pm Don’t Stop Believers
7.30pm Fake Britain; BBC News Re-creating authentic 8pm Countrywise 8pm CHOICE WWI: 6.30pm Live from Studio Five
8pm EastEnders 19th-century remedies. 8.30pm Coronation Street Finding the Lost Battalions 7.30pm How Do They Do It?
8.30pm Panorama 8pm University Challenge 9pm Identity: The true 9.30pm Big Brother: The latest Five News Update
9pm CHOICE Who Do You 8.30pm Antiques Master identity of a woman highlights from the house. 8pm CHOICE Police
Think You Are? 9pm On the Frontline: Life with in a witness protection 10.40pm Ramsay’s Kitchen Interceptors; Five News at 9
10pm BBC News the Green Howards: Following programme is leaked. Nightmares USA 9pm FILM The Jackal: Thriller,
10.25pm Regional News British troops in Afghanistan. 10pm ITV News at Ten 11.40pm Being N-Dubz starring Bruce Willis. 1997. WHO DO YOU THINK YOU ARE?
10.35pm My Child’s Big Fat 10pm Rev 10.30pm London News 12.10am 4Music: Biffy Clyro: 11.25pm Don’t Stop Believers BBC1, 9PM
Birthday Party 10.30pm Newsnight: Weather 10.35pm FILM Taking Lives: Video Exclusive 11.30pm The Sexy Ads Show Bruce Forsyth investigates claims that
11.20pm Brian Clough: The Detective thriller, starring 12.05am UFC 83: Main Event his great-grandfather, Joseph Forsyth
11.25pm FILM It’s a Boy Girl 12.15am Alan Carr: 1.05am SuperCasino 4.05am House
Thing Weatherview Greatest Manager England Angelina Jolie. 2004. Chatty Man Johnson, was married to two women
Doctor 4.30am House Doctor
1am Sign Zone: The Silence 2am Never Had? 12.30am The Zone; 1.15am Poker 2.10am Big Brother: 4.55am Animal Rescue Squad at the same time and died at sea.
Sign Zone: The Genius of Design 12.20am The Private Life of ITV News Headlines Live 4.20am-5.50am FILM 5.10am The New Tomorrow
3am Sign Zone: Museum of Life Chickens 2.30am The Jeremy Kyle Show Intrigue: Noir crime adventure, 5.35am-6am Michaela’s Wild
4am-6am BBC News 1.20am BBC News 4am-6am Close 3.25am-5.30am ITV Nightscreen starring George Raft. 1947. Challenge

SKY SPORTS 1 BRITISH EUROSPORT 3.50am Maury 4.40am 10pm The Sex Education Show 2am Chris Barrie’s Massive
SATELLITE & CABLE

7pm Live Darts: Day three of
the World Matchplay. 11pm
Time of Our Lives 12am
Speedway 2am Soccer AM:
The Best Bits 3am FIFA Futbol
Mundial 3.30am Watersports
World 4.30am Max Power
5.30am-6am FIFA Futbol
Mundial
SKY SPORTS 2
4.30pm Live ECB 40 League
Cricket 10pm PGA Tour Golf
11pm Wonderful World of Golf
12.30am PGA Tour Classic
1.30am Golfing World 2.30am
Boots ‘n’ All 3.30am-5.30am
Speedway
SKY SPORTS 3
7pm Fishing Gurus 7.30pm
Live Speedway 9.30pm
Premiership Years 11.30pm
Boots ‘n’ All 12.30am This
Week In WWE 1am WWE:
NXT 2am-4.15am Live WWE:
Late Night – Raw
6.30pm Triathlon 7.30pm
MotoGP 9.30pm Cycling: Tour
de France 10.30pm Planet
Armstrong: A profile of Lance
Armstrong. 10.35pm MotoGP
11.35pm-12.35am Cycling:
Tour de France
ESPN
7pm Superleague Formula 8pm
NFL Monday Night Football
Classics 11pm Russian Premier
League Football 12.30am X
Games Classix 1.30am Press
Pass 2010 2am-5am NFL
Monday Night Football Classics
LIVING
7pm Four Weddings: A singer
plans a bohemian ceremony.
8pm Dating in the Dark 9pm
Britain’s Next Top Model 10pm
Four Weddings US 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation 2am
So You Think You Can Dance
3am The Fresh Prince of Bel-Air
Nothing to Declare 5.30am-
6am Home Shopping
BBC THREE
7pm 101 Ways to Leave a
Gameshow 8pm Snog, Marry,
Avoid? 8.30pm Hotter Than My
Daughter 9pm Gavin & Stacey
9.30pm Lee Nelson’s Well Good
Show 10pm EastEnders
10.30pm Bizarre ER 11pm
Family Guy 11.45pm Gavin &
Stacey 12.15am Lee Nelson’s
Well Good Show 12.45am 101
Ways to Leave a Gameshow
1.45am Bizarre ER 2.15am
Peckham Finishing School for
Girls 3.15am Snog, Marry,
Avoid? 3.45am Hotter Than My
Daughter 4.15am-5.15am The
Real Hustle Around the World
E4
7pm Hollyoaks: The Costellos
set about making their mark on
the village. 7.30pm Friends
9pm One Tree Hill
v Pornography: Exploring Speed 3am Weaponology
teenagers’ access to 3.50am Nasa’s Greatest
pornography. 11.05pm Missions 4.40am Unsolved
Shameless 12.05am Being Erica History 5.30am-6am How
1.05am-6am Big Brother: Live Does That Work?
WW1: FINDING THE LOST
HISTORY DISCOVERY HOME & BATTALIONS CHANNEL 4, 8PM
7pm The Roman Invasion of HEALTH The exhumation of the bodies of 250
Britain: Life under the rule of 7pm Test Tube Babies 8pm 10 British and Australian First World War
the Romans. 8pm How Britain Years Younger 9pm Bringing soldiers that were discovered in 2009
Was Built 9pm King Arthur’s Home the Babies 10pm Deliver in unmarked graves in northern France.
Round Table Revealed 10pm Me 11pm Diagnosis X 12am
Inside the Body of Henry VIII Bringing Home the Babies 1am
11pm How the West Was Deliver Me 2am Diagnosis X
Made 12am How Britain Was 3am 10 Years Younger 4am
Built 1am The Roman Invasion Baby Tales 5am-6am Baby
of Britain 2am Ancient Whisperer
Discoveries 3am Royal Inquest
4am-5am Life After People SKY1
8pm The Biggest Loser US
DISCOVERY 10pm Law & Order 11pm
8pm How Do They Do It? Bones 1am Road Wars 1.50am POLICE INTERCEPTORS
8.30pm How It’s Made 9pm Oops TV 2.40am Road Wars FIVE, 8PM
How the Universe Works 10pm 3.30am Shear Genius 4.20am Two officers make a surprising discovery
King Tut Unwrapped 12am Tim Gunn’s Guide to Style while apprehending car thieves, and a
Deadliest Catch 1am Bear 5.10am-6am Are You Smarter team uses automatic number-plate
Grylls: Born Survivor Than a 10 Year Old? recognition to identify stolen vehicles.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
    

SUDOKU KAKURO
16 27 6 29 28 5 15
22 9 7
9 3 
45
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 8 11
10 14 19
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 7 14 4
  
above or to the left of it. 41 12
You can only use the digits 1-9 11 20     
  and you must not use the
23 16
28 30 
same digit twice in a block.
   The same digit may occur 17 7 
14 26 13
    more than once in a row or
column, but it must be in a
10
16
7
17
11

21 3
   separate block.
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or palace built by
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I C
by Pocahontas (5) 3 Small natural
7 Relatively coarse lace hollows in the
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters M made by weaving and cheek or chin (7)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E N knotting cords (7)
8 Rascal (5)
5 Branded (6)
6 Red fruit eaten as
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
S L 9 Softly bright or radiant (6) a vegetable (6)
12 Humble (5) 10 Decorative metal
QUICK CROSSWORD 7 9 4 9 3 8 2

$ 5 2 0 $ ' 2 & . 6
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11 Chemical
8 , 0 / 3
3 1 2 4 6 9 8          17 Pencil mark remover (6)
1 5 3 6 1 2 5 4 compound (7)
/ ( 7 6 $ / 3 $ & $
2 8 9 7 9 3
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21 Time of life between the
5 ( ( 9 ( 8 1 , 7 ( 1 2 4 1 8 4 9
ages of 13 and 19 (5)
 Sport
Versatile Yardy in no rush to
gatecrash England Test side
Sussex captain tells Jon Couch why he is sticking
with limited overs cricket – for now at least
A
LL-ROUNDER Michael Yardy
admits he is not ready to break
into the Test arena despite his
promising one-day form.
The Sussex captain has established
himself as a key member of England’s
limited-overs set-up, helping the
Three Lions to World Twenty20 suc-
cess and a 50-over series victory over
Australia so far this summer.
But unlike fellow one-day special-
ists Eoin Morgan and Craig
Kieswetter, Yardy has no plans to
Rossi denied a
podium place
on comeback
MOTO GP
▲
SIX-TIME champion Valentino Rossi
capped a stunning early comeback
from injury by claiming fourth place
at the German Grand Prix.
Exactly six weeks after suffering a
broken leg that experts warned
would keep him sidelined for months
the Italian roared back into action.
Yamaha rider Rossi only narrowly
missed out on a podium place after a
scrap with Ducati’s Casey Stoner.
Repsol’s Dani Pedrosa beat fellow
Spaniard Jorge Lorenzo to first place
to close on the championship leader.
push for a place in the five-day fold.
“Test cricket is hugely different,”
explains the 29-year-old, who now has
15 ODIs under his belt. “The goal at
the moment is to continue to hold
down my place in the England side
and make myself the best one-day
cricketer I can be.
“All I can do is keep playing well for
Sussex in four-day cricket and if my
chance comes along, then great. First
though, I’ve been handed a role as a
one-day player for England, whether
McKenzie earns vital win Schleck keeps his nose in
to send Hants through front of rival Contador
▲
CRICKET
BATSMAN Neil McKenzie guided
Hampshire to a 45-run win over
Sussex and booked them a Friends
Provident t20 quarter-final with
Warwickshire.
McKenzie’s unbeaten 67 helped the
home side to 195-5 and earned them
the victory they needed to progress to
the last eight.
Sussex also advanced despite the
defeat and will meet
Northamptonshire, who claimed a
seven-wicket win over Durham.
Lancashire edged out
Worcestershire to set up a clash with
Essex, who qualified despite losing by
it be in the Twenty20 or 50-over set-
up, and I aim to fulfil that.”
Standing in his way of a Test place,
however, is Graeme Swann, who has
cemented his role as England’s pre-
mier spinner in all forms.
“Obviously if it’s a choice between
Graeme and I they [the selectors] will
go with him,” Yardy accepts. “He’s
one of the best bowlers in the world
right now and he’s a great guy to
have around in the dressing room.
“I do not see Graeme as competi-
tion, in fact if anything we comple-
ment each other when we play in the
same side, and I can learn a lot off
him – he’s a class act.”
Yardy, however, is being moulded
into one of a number of England all-
11 runs to Middlesex.
Steven Croft hit a career-best T20
innings of 88 off just 52 balls, includ-
ing 10 fours and four sixes.
Warwickshire took top spot in the
North Group with an eight-run tri-
umph over Leicestershire, but South
Group winners Somerset slipped to a
59-run defeat to Kent in their final
fixture.
QUARTER-FINALS | FP T20
Warwickshire v Hampshire
Nottinghamshire v Sussex
Somerset v Northamptonshire
Essex v Lancashire
21
I WOULDN’T BLAME FABREGAS
FOR LEAVING ARSENAL
HENRY HAS SYMPATHY FOR CESC’S
WISH TO QUIT GUNNERS: PAGE 23
Yardy has made 15
one-day appear-
ances for England.
WINNERS &
LOSERS
Picture:
ACTION IMAGES A WEEKEND is a long time in sport, as
this lot will attest. But while for some
it was a few days to remember, others
may wish they had never set foot out
of the house.
PAUL THE OCTOPUS
So popular is the psy-
chic cephalopod that
his German keepers
have snubbed a cash-
plus-animals bid from a
Madrid zoo desperate
for the World Cup’s real
star. Has also spawned
his own iPhone app.
WINNER
SAM WEALE
Who? The first British
man to win an indvid-
ual medal at the
Pentathlon European
Championship, that’s
who. Weale, 28, took
silver yesterday in
Hungary after excelling
WINNER in the run/shoot.
ATTILIO LOMBARDO
Former Juventus, Lazio
and, er, Crystal Palace
winger Lombardo, last
seen managing in the
lower reaches of Italian
football, has been
plucked from obscurity
to be a coach at
WINNER Manchester City.
RORY MCILROY
He shot an 80 on
Friday and still came
joint third at the Open.
rounders, and it’s his role as a mid-
dle-order batsman which has also
The prodigious
Ulsterman will surely
been key to staying in the side.
“My batting has improved a lot,”
win a Major in due
course but for now will
says Yardy, who claimed his first ODI be wondering what
half-century against Australia at the might have been.
LOSER
Oval last month. “It’s important I con-
tribute with the bat and I need to
keep improving because ours is a very BRADLEY WIGGINS
strong batting line-up. Ajmal A Tour de France cam-
Shahzad batted at No11 against paign that promised
Bangladesh last week and he scored much, after last year’s
800 first-class runs last season.” encouraging perform-
Michael Yardy was supporting Asda Kwik ance, seems to get
Cricket which involves 130,000 children worse by the day, with
from 12,000 primary schools. Asda sponsor Wiggins now not even
the competition to promote healthy and the best performing
active lifestyle for children. Check out rider on Team Sky.
www.asda.com/kwikcricket for more detail. LOSER
time as the Spaniard, but the pair
▲
CYCLING
both lost 14 seconds to rivals Denis
YELLOW jersey holder Andy Schleck Menchov and Samuel Sanchez.
edged closer to his first Tour de Contador made his move on the
France title after a cat-and-mouse final climb, 5km from the finish line
duel with defending champion in Ax-3-Domaines, but his Team Saxo
Alberto Contador in the Pyrenees. Bank adversary refused to let him get
Frenchman Christophe Riblon was away.
the surprise winner of the 14th stage Schleck then took his turn to seize
– the first of four consecutive energy- the initiative with just 2km to go,
sapping days in the mountains. only for Astana man Contador, who is
But the most significant action was seeking his third Tour title in four
unfolding behind the Ag2r La years, to match him.
Mondiale rider, as Schleck battled to Menchov, of Rabobank, and
maintain his 31 second advantage Sanchez, of Euskaltel-Euskadi, capi-
over Contador. talised on the leading duo’s distrac-
The overall race leader may have tion to close the gap on Schleck to
succeeded, finishing with the same just over two and a half minutes.
 22 Sport CITYA.M. 19 JULY 2010

Results
GOLF
FINAL ROUND SCORES IN THE 139TH OPEN CHAMPIONSHIP, ST
ANDREWS, (Old Course, Fife, Scotland)—(Gbr & Irl unless stated,
par 72): 272 L Oosthuizen (Rsa) 65 67 69 71, 279 L Westwood 67
Imperious The South African
had missed the cut
in seven of his last
eight Majors.
Picture:

Oosthuizen
71 71 70, 280 R McIlroy 63 80 69 68, P Casey 69 69 67 75, H ACTION IMAGES
Stenson (Swe) 68 74 67 71, 281 R Goosen (Rsa) 69 70 72 70 , 282
N Watney (USA) 67 73 71 71, R Rock 68 78 67 69, S O'Hair (USA)
67 72 72 71, M Kaymer (Ger) 69 71 68 74, 283 J Overton (USA) 73
69 72 69, L Donald 73 72 69 69, A Quiros (Spa) 72 70 74 67, 284 C
Schwartzel (Rsa) 71 75 68 70, S Garcia (Spa) 71 71 70 72, T
Lehman (USA) 71 68 75 70, Jin Jeong (Kor) 68 70 74 72, R
Karlsson (Swe) 69 71 72 72, D Johnson (USA) 69 72 69 74, J.B.

crowned king
Holmes (USA) 70 72 70 72, I Garrido (Spa) 69 71 73 71, R Fowler
(USA) 79 67 71 67, 285 T Woods (USA) 67 73 73 72, S Gallacher 71
73 70 71, G McDowell 71 68 76 70, T Immelman (Rsa) 68 74 75 68,
286 A Scott (Aus) 72 70 72 72, M Siem (Ger) 67 75 74 70, M
Kuchar (USA) 72 74 71 69, R Ishikawa (Jpn) 68 73 75 70, K Na
(USA) 70 74 70 72, R Allenby (Aus) 69 75 71 71, M Angel Jimenez
(Spa) 72 67 74 73, A Canizares (Spa) 67 71 71 77, E Molinari (Ita) 69
76 73 68, B Dredge 66 76 74 70, 287 P Hanson (Swe) 66 73 74 74, S

of the Open
Kjeldsen (Den) 72 74 70 71, H Mahan (USA) 69 76 71 71, C Moriarty
72 73 72 70, V Singh (Fij) 68 73 76 70, R Fisher 68 77 68 74, S
Lowry 68 73 71 75, 288 R Barnes (USA) 68 71 72 77, B Van Pelt
(USA) 69 72 73 74, C Villegas (Col) 68 75 70 75, D Clarke 70 70 77
71, 289 P Mickelson (USA) 73 71 70 75, J Daly (USA) 66 76 74 73, L
Glover (USA) 67 76 70 76, J Senden (Aus) 68 76 73 72, S Cink
(USA) 70 74 71 74, S Dyson 69 75 73 72, K Kim (Kor) 70 74 73 72
290 Steve Stricker (USA) 71 74 71 74, S Marino (USA) 69 76 69 76,
Z Scotland 70 74 72 74, D Chia (Mal) 69 77 74 70, S Khan 74 69 73
74, 291 M Leishman (Aus) 73 71 72 75, I Poulter 71 73 76 71, T
14th. It became a bit difficult having a
Pernice Jnr. (USA) 72 74 71 74, Heath Slocum (USA) 71 74 73 73, P
Senior (Aus) 73 71 74 73, Y.E. Yang (Kor) 67 74 76 74, T Taniguchi
(Jpn) 70 70 77 74, J Day (Aus) 71 74 75 71, 292 H Miyase (Jpn) 71
THE OPEN big lead, but I’m glad I had all those
75 73 73, C Montgomerie 74 71 74 73, S Tiley 66 79 73 74, F CHAMPIONSHIP shots in hand on the 17th.”
Oosthuizen had missed the cut in
Andersson Hed (Swe) 67 74 73 78, 293 A Coltart 66 77 74 76, 294 BY FRANK DALLERES
M Calcavecchia (USA) 70 67 77 80, 295 TAiken (Rsa) 71 73 77 74, R seven of his previous eight Major
Johnson (Swe) 73 73 76 73, 296 Z Johnson (USA) 72 74 74 76, S ST ANDREWS is notorious for its appearances and was priced at 200-1
Verplank (USA) 72 73 74 77. gusty conditions but it was unherald- before the first tee-shot on Thursday.
CRICKET ed South African Louis Oosthuizen His nerves might have been jangling
First Test Match: Sri Lanka v India (Galle); Sri Lanka256-2 who truly blew away all comers as he but he betrayed few signs of inner tur-
(68.0 overs) (K C Sangakkara 103). v India. clinched the Open Championship in moil as he zeroed in on the biggest
Friends Provident T20 - North Division: Derbyshire v Yorkshire
(Derby); Derbyshire 137-7 v Yorkshire 138-4 (A W Gale 55). emphatic fashion. triumph of his career.
Yorkshire (2pts) beat Derbyshire by 6 wickets. Durham v Oosthuizen, who arrived at the The overnight leader began his
Northamptonshire (Emirates Durham ICG); Durham 129-5 v Home of Golf with just one European final round with a four-shot cushion
Northamptonshire 133-3 (R A White 63). Northamptonshire
(2pts) beat Durham by 7 wickets. Warwickshire v Tour title under his belt, romped to over Casey and began steadily, mak-
Leicestershire (Grace Road); Warwickshire 137-7 v his first Major victory by a staggering ing par at the first seven holes. He
Leicestershire 129-6. Warwickshire (2pts) beat Leicestershire seven-stroke margin as English hopes wobbled at the eighth, dropping a
by 8 runs. Lancashire v Worcestershire (New Road);
Lancashire 198-6 (S J Croft 88) v Worcestershire 191-7 (M M Paul Casey and Lee Westwood failed shot, but bounced back in formida-
Ali 72). Lancashire (2pts) beat Worcestershire by 7 runs. to mount a serious challenge. ble style by holing an eagle at the
South Division: Middlesex v Essex (Chelmsford); Middlesex 173- The 28-year-old carded a closing ninth.
7 v Essex 162-6. Middlesex (2pts) beat Essex by 11 runs. round of 71 to finish on 16 under par If Casey saw the writing on the wall
Gloucestershire v Surrey (Bristol); Gloucestershire 147-9 v
Surrey 150-4 (S M Davies 73). Surrey (2pts) beat – just three shots shy of Tiger Woods’ then he was left in no doubt when he
Gloucestershire by 6 wickets. Hampshire v Sussex (The Rose legendary 2000 effort – and trouser triple bogeyed the 12th. And
Bowl); Hampshire 195-5 (N D McKenzie 67no) v Sussex 150. the Claret Jug and a winners’ cheque although Westwood’s 70 helped him
Hampshire (2pts) beat Sussex by 45 runs. Kent v Somerset
(Taunton); Kent 141 (J L Denly 65) v Somerset 82. Kent (2pts) worth £850,000. finish runner-up for the second time
beat Somerset by 59 runs. “It’s unbelievable – just amazing,” in three Majors, he never came close
CYCLING said Oosthuizen. “It’s probably going to threatening Oosthuizen.
TOUR DE FRANCE.—Stage 14 (Revel - Ax-3 Domaines, 184.5km): to hit me tomorrow or the week after. “I felt I needed something to get me
1 Christophe Riblon (Fra) AG2R La Mondiale 4hrs 52mins I felt like I played well all week and going and the eagle did it,” the winner
42secs, 2 Denis Menchov (Rus) Rabobank at 0.54, 3 Samuel the biggest goal for me was to stay added. “I made good putts when I had
Sanchez Gonzalez (Spa) Euskaltel - Euskadi at same time, 4
Andy Schleck (Lux) Team Saxo Bank at 1.08, 5 Joaquin cool. I’d like to have kept the record of to and rarely missed anything under
Rodriguez (Spa) Team Katusha at same time, 6 Robert Gesink not going in the bunker [like Woods six feet, but it was much tighter than
(Ned) Rabobank at same time, 7 Alberto Contador Velasco in 2000], but I went in one on the it looked until that 12th.”
(Spa) Astana at same time, 8 Jurgen Van Den Broeck (Bel)
Omega Pharma-Lotto at same time, 9 Damiano Cunego (Ita)
Lampre-Farnese Vini at 1.49, 10 Carlos Sastre (Spa) Cervelo

He outclassed all of them Jol set to be

Test Team at same time, 11 Levi Leipheimer (USA) Team
Radioshack at 1.53, 12 Ryder Hesjedal (Can) Garmin -
Transitions at 2.00, 13 Alexander Vinokourov (Kaz) Astana at
same time, 14 Luis Leon Sanchez Gil (Spa) Caisse d'Epargne at

named Fulham
2.02,15 Christophe Moreau (Fra) Caisse d'Epargne at same
time. Others: 36 Bradley Wiggins (Gbr) Sky Professional
Cycling Team at 4mins 59secs, 69 Geraint Thomas (Gbr) Sky
Professional Cycling Team at same time, 116 David Millar (Gbr)

boss this week

Garmin - Transitions at 36.19, 142 Daniel Lloyd (Gbr) Cervelo
Test Team at same time, 161 Mark Cavendish (Gbr) Team HTC - Major title. will never be able to take away from
Columbia at same time, 168 Steven Cummings (Gbr) Sky Some players suffer under the pres- him and he will certainly never be
Professional Cycling Team at same time. Overall: 1 Andy
Schleck (Lux) Team Saxo Bank 68hrs 02mins 30secs, 2 sure of being out in front, especially short of a penny or two ever again.
Alberto Contador Velasco (Spa) Astana at 0.31, 3 Samuel those with less experience, but the For Lee Westwood, however, that
Sanchez Gonzalez (Spa) Euskaltel - Euskadi at 2.31, 4 Denis South African seemed to be unaffect- Major triumph must be just a matter
▲

Menchov (Rus) Rabobank at 2.44, 5 Jurgen Van Den Broeck FOOTBALL

(Bel) Omega Pharma-Lotto at 3.31 , 6 Robert Gesink (Ned) ed. In fact, if anything, he appeared to of time. Runner-up again, he has now BY FRANK DALLERES
Rabobank at 4.27, 7 Levi Leipheimer (USA) Team Radioshack at thrive on the situation. finished in the top three at four of
4.51, 8 Joaquin Rodriguez (Spa) Team Katusha at 4.58, 9 Luis He has missed the cut in four of the the last five Majors – I can’t remem- FORMER Tottenham boss Martin Jol
Leon Sanchez Gil (Spa) Caisse d'Epargne at 5.56 , 10 Ivan last six tournaments and had not ber any player having a run like that. looks poised to complete a shock
Basso (Ita) Liquigas-Doimo at 6.52, 11 Alexander Vinokourov OUR MAN AT ST ANDREWS won many titles on the European His fellow Englishman Paul Casey return to the Premier League by tak-
(Kaz) Astana at 7.04, 12 Roman Kreuziger (Cze) Liquigas-Doimo
at 7.11, 13 Ryder Hesjedal (Can) Garmin - Transitions at 7.17, 14
Nicolas Roche (Irl) AG2R La Mondiale at 8.03, 15 Carlos Sastre
SAM TORRANCE Tour, so we didn’t see this one com-
ing. But he has always had a fantastic
also did well but must have known it
was all over when he hit that tee shot
ing charge at Fulham.
The Cottagers spent last night in
(Spa) Cervelo Test Team at 8.15. Others: 18 Bradley Wiggins
(Gbr) Sky Professional Cycling Team at 11.30, 58 Geraint swing, and that quality really shone at the 12th. That was a big disappoint- talks with Ajax thrashing out a com-

H
Thomas (Gbr) Sky Professional Cycling Team 1hr 10mins IS first two rounds at the Open through over the weekend. ment. pensation package for the Dutchman,
29secs, 148 Steven Cummings (Gbr) Sky Professional Cycling were magnificent, but his sec- Now the question is: where does Like Westwood, Rory McIlroy’s time who was sacked by Spurs in 2007.
Team at 2.21.50, 150 Mark Cavendish (Gbr) Team HTC -
Columbia at 2.24.15, 156 David Millar (Gbr) Garmin -
ond two were probably even Oosthuizen go from here? will surely come soon. To shoot the Fulham depart for a pre-season trip
Transitions at 2.31.51, 160 Daniel Lloyd (Gbr) Cervelo Test better. For four days Louis Well after bagging the Open he can two rounds that he did after his 80 on to Sweden today without a manager
Team at 2.34.17, 163 Jeremy Hunt (Gbr) Cervelo Test Team at Oosthuizen outclassed the field here do just about whatever he likes. The Friday was nothing short of magnifi- but hope to appoint Jol in time for
2.36.30. and he thoroughly deserved his first pressure is off. It’s something they cent and the stuff of champions. Thursday’s friendly against Halmstad.
RUGBY LEAGUE The 54-year-old has surprised Ajax
ENGAGE SUPER LEAGUE by contemplating leaving the iconic
Bradford............................................26 Salford ........................................30
Castleford ........................................40 Wakefield ..................................16
FOOTBALL | IN BRIEF club for relatively unglamorous
St Helens...........................................32 Harlequins RL ..........................18 Fulham.
P W D L F A Pts Jol is thought to have been con-
Wigan ...........................................22 18 0 4 762 351 36
Warrington..................................22 17 0 5 725 375 34
Pletikosa set to join Spurs jersey and would join international col- being paid in instalments, with president cerned that Ajax are set to sell their
St Helens......................................22 15 0 7 734 465 30 TOTTENHAM manager Harry Redknapp leagues Luka Modric, Vedran Corluka and Gilbert Stellardo saying: “The amount star players, forward Luis Suarez and
Hull.................................................22 14 0 8 477 450 28 says he is close to finally signing experi- Niko Kranjcar at White Hart Lane. suits me but not the payment method.” full-back Gregory van der Wiel.
Leeds.............................................22 13 1 8 574 487 27 enced Croatia goalkeeper Stipe Pletikosa. Mohamed al Fayed, meanwhile, is
Huddersfield................................22 11 1 10 564 397 23
Hull K R.........................................22 11 1 10 490 496 23
The Spartak Moscow stopper almost Pay up now, Nice tell West Ham Top gun Cruise downs Austria said to have promised Jol he will have
Castleford.....................................22 10 0 12 522 602 20 joined Spurs last summer before injury WEST HAM have been told they will ENGLAND kicked off their Under-19 significant transfer funds at his dis-
Wakefield.....................................22 9 0 13 469 543 18 scuppered the deal, but Redknapp did not have to pay more money up front if they European Championship campaign with a posal as the Fulham chairman looks
Bradford.......................................22 8 1 13 420 533 17 drop his interest altogether. want to beat Liverpool to the signing of 3-2 win over Austria. to build on the success of Roy
Crusaders RL ..............................21 8 0 13 385 602 16
Salford ..........................................22 7 0 15 372 658 14 “I might be taking another goalkeeper French starlet Loic Remy. West Ham striker Frank Nouble struck Hodgson’s tenure.
Harlequins RL .............................21 6 0 15 394 652 12 from Croatia – Pletikosa,” said Redknapp. Nice are ready to sell the pacy striker, twice in the first half and, after Austria Hodgson led Fulham to the Europa
Catalans Dragons.......................22 4 0 18 326 603 8 “[There is] every chance I might be get- who netted 15 times last season, and the pulled a goal back, Arsenal defender Tom League final last season, beating
ting him so that’s good.” Hammers have matched the asking price Cruise notched a crucial third. Juventus, Wolfsburg and Hamburg
SPORTS EDITOR JON COUCH Pletikosa, who has 80 caps, is expect- of £8.5m. England are still to face Holland and along the way, before quitting to take
email sport@cityam.com ed to rival Heurelho Gomes for the No1 But the Ligue 1 club are unhappy at hosts France in their group. charge of Liverpool.
CITYA.M. 19 JULY 2010 Sport 23

LEADERBOARD | FINAL SCORES

-16 Oosthuizen (RSA)
-9 Westwood (ENG)
-8 Casey (ENG) McIlroy (NIR), Stenson
Westwood bridesmaid again
(SWE)
-7 Goosen (RSA)
-6 Kaymer (GER), O’Hair (USA), Rock (ENG)
THE OPEN
Watney (USA) CHAMPIONSHIP
BY FRANK DALLERES
Selected others: -5 Donald (ENG), -3 Woods ENGLAND’S Lee Westwood admits he
(USA), +1 Mickelson (USA) is baffled by his inability to make the
leap from perennial nearly-man to
Major champion.
Westwood had to make do with sec-
ond place at the Open yesterday, just
as he did at the Masters – making it
four top-three finishes in his last five
Majors.
“I know what I’ve got to do:
improve,” said Westwood. “I’m show-
ing a lot of consistency, but it’s not
quite good enough. I’m not sure what
it is quite. I keep putting myself in
position and in contention – that’s all
I can do. I didn’t get off to a quick
enough start today.
“I thought if I could turn in five
under anything was possible, but it
was difficult out there. The pin posi-
tions were tough. This is not an easy
course when there’s a 20mph wind
blowing. And Louis is obviously play-
ing really well.”
Countryman Paul Casey looked the
most likely to derail Louis Oosthuizen
but his challenge died when he card-
ed a disastrous triple bogey at 12. Yet
he refused to be downhearted.
“As disappointed as I am with the
way I played today, Louis was in a dif-
ferent league,” said Casey. “That soft-
ens my disappointment slightly,
because it was a tremendous perform-
ance. Hats off to him.”
Northern Ireland’s Rory McIlroy,
who finished tied for third with Casey
on eight under par, insists he will not
be haunted by the woeful round on
Friday that wrecked his bid.
“It’s not going to give me night-
mares,” said McIlroy.
“I’m sure I’ll wake up in the morn-
ing and look at the fact I was 16 under
for three rounds and had just one bad
round – it’s fine.”

Henry: I’d
understand if
Fabregas quit
also understand if he goes back
▲

FOOTBALL
BY FRANK DALLERES
ARSENAL legend Thierry Henry
admits he sympathises with Cesc
Fabregas over his desire to quit the
Gunners and move back to Barcelona.
New York Red Bulls star Henry
knows all about the Spaniard’s
predicament, having swapped the
Emirates Stadium for Camp Nou in
2007. And although the Frenchman
would love Fabregas to stay at the
club he still holds dear, he concedes
the midfielder’s wishes are under-
standable.
“It is hard because the guy is from
Barcelona,” said Henry. “I wouldn’t
like to be in his position because he is
from there and he loves Arsenal. I
don’t know what to say about this,
because I don’t want to talk for him.
But as an Arsenal fan, for me, I want
him to stay at Arsenal, but I would
home.”
Barca president Sandro Rosell has
accepted he may have to wait at least
another year if he is to persuade
Arsenal to relinquish their playmak-
er. Fabregas has told manager Arsene
Wenger he wants to return to his
hometown club, but the Gunners
have already snubbed a bid of £30m
and made it abundantly clear they
would not welcome further offers.
Henry, meanwhile, may have only
just arrived in America but is already
dreaming of a return to the Gunners,
where he scored a club record 226
goals. “When I retire, I don’t know
how, but I want to come back to
Arsenal,” said the striker, 32. “I have
just come here [New York] to play and
to compete and win another title.
“Whatever it is I want to come back
[to Arsenal], maybe as a waterboy. I
just love this club.”
 Trade EUR/USD...
from 1 pip,1% deposit
and no re-quotes.

ì 7LJKWVSUHDGVDQGORZGHSRVLWUDWHVRQFXUUHQF\SDLUV
ì (8586'86'-3<IURPSLS*%386'IURPSLSV
ì 7KH8.åV1RILQDQFLDOVSUHDGEHWWLQJSURYLGHU*

Start forex spread betting at igindex.co.uk or call 0800 195 3100.

6SUHDGEHWWLQJFDQUHVXOWLQORVVHVWKDWH[FHHG\RXULQLWLDOGHSRVLW

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Investment Trends report 2009