www.cityindex.co.
uk
Issue 1,234 Tuesday 5 October 2010
OSBORNE’S CHILD BENEFIT
U-TURN HITS MIDDLE CLASS
CONSERVATIVE
CONFERENCE
BY DAVID CROW IN BIRMINGHAM
THE CHANCELLOR yesterday
announced sweeping benefit cuts for
higher earners, as he seeks to slash
the welfare bill and reduce Britain’s
yawning budget deficit.
Families paying the higher 40 or 50
per cent rate of tax will no longer
receive child benefit, affecting hun-
dreds of thousands of professional
Londoners.
By 2013, families with an adult that
earns over £43,875 will have their
child benefit withdrawn through the
tax system, George Osborne said.
He added: “We still pay over a bil-
lion pounds a year in child benefit to
higher rate taxpayers. Most are not
the super rich, but it’s very difficult
to justify taxing people on low
incomes to pay for the child benefit of
those earning so much more than
them.”
Treasury officials say the reforms,
which will affect 1.2m households,
will save around £1bn a year.
But the Centre for Social Justice, a
think-tank set up by welfare secretary
Iain Duncan Smith, said it was “con-
cerned” about the reforms, which
penalise families with a stay-at-home
mother or father. It called on the gov-
ernment to consider “alternative
options”.
The changes will punish families
that have one adult paying the higher
rate of tax. For example, a two-child
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SAM TORRANCE’S VIEW P27
Chancellor George Osborne yesterday described his plans as “tough but fair”
family with a father that earns
£44,000-a-year and a stay-at-home
mother will lose £1,700 a year in child
benefit.
But a two-earner family where both
parents earn £42,000 a year – giving
them a combined household income
of £84,000 – will continue to receive
their child benefit, even though they

www.cityam.com
We will preserve
child benefit. [It] is
valued by millions
October 2009
It’s very hard to justify taxing people
on much lower incomes in order to
pay the child benefit to some of the
better off in our society
October 2010
Picture: PA
are better off. er-rate income tax threshold might
The Institute of Fiscal Studies (IFS) find themselves considerably worse
warned that government’s proposals off from a small rise in income.”
would also “seriously distort work He added: “A one-earner couple
incentives for some families with chil- with an income of £43,875 would
dren”. need a pay rise of £2,975 or more to
Mike Brewer, an economist at the ensure they were no worse off after
IFS, said: “Adults with children whose paying income tax and national
income places them below the high- insurance and losing child benefit.”
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Aides to the chancellor insisted the
plans were fair, and said the only
other option was to means-test child
benefits.
The coalition has also drawn up
plans to scrap child benefit for par-
ents with children aged between 16
and 18, which could be announced in
the comprehensive spending review
on 20 October.
Treasury officials say this measure,
which would affect 2m families,
would save around £2bn.
Meanwhile, unemployed house-
holds will have their benefits capped
at £26,000 a year.
From 2013, families will not receive
more in weekly benefits than the
average working family earns, which
is expected to total around £500 a
week.
Treasury officials estimate that the
cap will affect 50,000 households,
who will lose an average of £93 a
week, although the reforms do not
apply to people on disability living
allowance.
Larger families and those living in
expensive inner London areas will be
disproportionately affected, and
could be forced to move to cheaper
areas.
Aides to the chancellor said they
expected the cap to save “hundreds of
millions of pounds a year”, although
they would not be drawn on exact fig-
ures.
Labour said the move undermined
the coalition’s claim to be a family-
friendly government.
ALLISTER HEATH: P2; NEWS: P8-9
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 2 News
Child benefit reform needs a rethink
EDITOR’S LETTER
ALLISTER HEATH
W
HO said nothing ever
happens at political party
conferences? It felt
almost like another
Budget day yesterday in Birmingham,
with George Osborne announcing a
radical, once in a generation welfare
revolution. The plan is breathtaking
in its ambition. The entire welfare sys-
tem, with its dozens of overly com-
plex benefits, will eventually be
replaced by a single benefit; the myri-
ad of work destroying incentives will
be swept away, with a dramatic com-
mitment to ensure that it will always
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News Editor Ben Griffiths
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Associate Editor David Crow
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WHAT THE OTHER PAPERS SAY THIS MORNING
EU NATIONS WIN A YEAR’S REPRIEVE
ON STATE AID
European governments will be
allowed to provide soft loans and
other concessionary support to their
banking and industrial sectors for
one more year because of the linger-
ing effects of financial crisis, accord-
ing Europe’s top competition
regulator. But in an interview Joaquín
Almunia, European Union competi-
tion commissioner, said he would
reinstate the much tougher “normal”
state aid regime from the beginning
of 2012.
FLASH CRASH REPORT WILL NOT STOP
HFT DEBATE
The high-frequency trading firms
that have come to dominate daily
trading in US equity markets may feel
entitled to a little slack. After suffer-
ing a good deal of political heat over
May’s “flash crash” on Wall Street, it
pay for recipients to work. In parallel
to this, shorter term changes are
being imposed to save money: those
who pay tax at 40 or 50 per cent will
lose all their child benefit; the total
amount of benefits a workless family
can receive will be capped at around
£500 per week, close to what an aver-
age family would earn from working.
It makes no sense that better-off
families pay lots of tax, and then get
some of it back. It keeps taxes and
spending high without helping any-
body apart from those paid to admin-
ister this merry-go-round. So it is
right, in principle, that child benefits
be means-tested. The problem is that
the actual reform outlined yesterday
is unfair. Imagine your neighbour
and his partner are making £43,000
each (a family total of £86,000) and
have one child. They will keep their
benefit, worth £1,000. Imagine that
you are on £43,876, with a stay at
home partner who doesn’t work and
two children. You will lose your child
benefits, worth £1,750. How is that
Greece sets a
tough Budget
GREEK CRISIS
▲
BY JOHN DUNNE
GREECE will cut its budget deficit to
seven per cent of gross domestic prod-
uct (GDP) and launch a fresh wave of
cuts in the public sector it said in its
draft budget yesterday.
The 2011 budget, aimed at convinc-
ing European leaders that it is on
track to tackle its deficit crisis, would
see the debt narrowed more than
expected.
Under an agreement with Europe,
which bailed Greece out with a
€110bn (£95bn) package, the country
is required to cut the level of debt to
7.6 per cent of GDP.
The country’s fiscal gap in 2011
would be €16.35bn, down from
€18.5bn this year, according to the
documents.
Revenue will rise 6.9 per cent on a
turns out that a large order by a tradi-
tional investor was the trigger for the
wild market swings.
BOFA SELLS OFF FOXTONS LOANS
PACKAGE
Bank of America Merrill Lynch has
sold loans it made to Foxtons estate
agents at the peak of the London
property bubble to Haymarket
Financial, a corporate lender
launched last year. The deal severs all
lending links between BofA and
Foxtons, as the US bank is also selling
its share of the estate agents’ mezza-
nine loans, a more junior form of
financing.
VIMPELCOM SET TO JOIN TELECOMS
BIG LEAGUE
Vimpelcom has agreed to merge with
most of the telecoms assets of Naguib
Sawiris, the Egyptian entrepreneur,
to form the world’s fifth largest
mobile phone group by customers.
The $6.6bn deal will transform
Vimpelcom.
just?
Families with a stay at home parent
are already discriminated against
because the tax free allowance isn’t
transferrable. To go back to our exam-
ple, a couple relying on one earner on
£86,000 pays far more direct tax than
a couple relying on two earners on
£43,000 each, who benefit from two
separate zero-rated allowances. The
change to child benefits will make
this worse. What is really needed is
family-based, not individual based,
accounting.
There is another major issue.
Imagine this time that you are just
below the 40 per cent tax rate. Your
boss offers you a promotion and a pay
rise of £1,000 – astonishingly, rather
than celebrating, you will refuse. As
the Institute of Fiscal Studies points
out, a family with two children
receives £1,750 a year in child benefit.
A one-earner couple with two chil-
dren with a gross income of £43,876-
£46,850 would be worse off than if
their income were £43,875. Crazy. A
year-to-year basis to €56.3bn, and
spending will fall 5.9 per cent to
€67.5bn next year, according to the
draft budget. It also forecasts that the
Greek economy will shrink by 2.6 per
cent in 2011 after a drop of four per
cent in 2010.
The country has set in motion a
series of emergency measures includ-
ing a blitz on unpaid tax and public
sector cuts which have triggered a
series of strikes.
Despite the economic storm China
has backed Greece’ s recovery pack-
age with a support for the country’s
shipping industry and a pledge to buy
Greek government bonds.
Finance minister George
Papaconstantinou and Prime
Minister George Papandreou said yes-
terday that more cutting was
inevitable if the Greek economy was
to secure a long-term recovery.
MORE THAN HALF OF £7BN CITY
BONUSES WILL GO TO TAXMAN
The City will pay bonuses totalling
nearly £7bn this year but, for the first
time, the taxman will be taking a
greater share of the bonuses than
bankers, brokers and traders. The lat-
est forecasts from the Centre for
Economic and Business Research
show that recent Treasury revisions
indicate that banks and City firms
will be paying a total of £6.99bn this
year in bonuses.
KRAFT CHIEF’S CHARM OFFENSIVE IN
CADBURY HEARTLAND
The chief executive of Kraft will final-
ly meet Cadbury staff this week —
nine months after the American food
group’s controversial £11.5bn
takeover of the Dairy Milk maker.
Irene Rosenfeld will hold a “town
hall” meeting for Cadbury employees
at its Bournville site in Birmingham.
one-earner couple with an income of
£43,875 would need a pay rise of
£2,975 to ensure they were no worse
off after paying direct tax and losing
child benefit. This doesn’t make sense
– especially given that Osborne wants
to eradicate perverse anti-work incen-
tives elsewhere in the system.
Yesterday’s blunder is a shame
given that the overall welfare plan is
extremely promising. One of the
greatest tragedies in this country is
that 5.9m adults are stuck on out of
work benefits, in many cases with no
incentive to work. The coalition’s
commitment to creating a system to
help move the most deprived people
in our society into employment is
admirable. But all of this could be
ruined by the way the cuts to child
benefits have been designed. For the
sake of the wider reform, Osborne
must think again: the better off
should lose their benefits, but in a
way which preserves fairness and
incentives. Let’s hope it is not too late.
allister.heath@cityam.com
Greek finance minister
George Papaconstantinou
Picture: REUTERS
TIME LINE | HOW THE GREEK DEBT CRISIS HAS UNFOLDED
● Jan 14 2010 Greece unveils stability
programme, saying it will aim to cut its
budget gap to 2.8 per cent of GDP in
2012 from 12.7 per cent in 2009.
● 2 Feb Prime Minister George
Papandreou says the government will
extend a public sector wage freeze to
those making below €2,000 a month.
● 24 Feb Strikes against austerity
measures cripples Greece’s transport and
public services.
● 5 Mar New package of public sector
pay cuts and tax increases is passed to
save an extra €4.8bn.
● 11 April Eurozone finance ministers
approve €30bn emergency aid mecha-
NIGHTCLUBS PLAN TRADE
ASSOCIATION TO KEEP DANCING
Nightclub impresarios are banding
together to create the first trade asso-
ciation for top West End clubs. The
fiercely competitive owners and man-
agers behind the velvet ropes have
agreed to share knowledge and coop-
erate in a bid to boost business. Club
Union, likely to be called the
Association of Club Owners when it is
formally established, aims to be an
authority on the industry that can
help its members.
BOOM TIME ABOUT TO TAKE OFF WITH
AIRBUS IN BANGALORE
One factory was carrying on regard-
less. At Dynamatics, a Bangalore-based
supplier to Airbus, workers continued
making a crucial wing part for the
manufacturing giant’s A320 aircraft.
This is a business which lives up to the
outsourcing.
CITYA.M. 5 OCTOBER 2010
NEWS | IN BRIEF
US sues American Express
The Justice Department sued American
Express yesterday, saying its rules pre-
venting retailers from encouraging con-
sumers to use cheaper, rival credit cards
violate antitrust law. The Justice
Department settled with Visa and
MasterCard, which agreed to allow mer-
chants to offer discounts to consumers
who use less expensive types of credit or
debit cards. The lawsuit has the poten-
tial to cut into a significant source of
profits at American Express. The US
credit card business vowed to fight the
suit.
BP issues €2bn euro bond
Britain’s BP is borrowing €2bn
(£1.72bn) from European investors via a
bond issue carried out yesterday,
designed to help finance a $20bn
(£12.6bn) fund set up to compensate
victims of its Gulf of Mexico oil spill. The
cost of the deal is substantially less than
investors would have demanded prior to
the oil firm plugging the Macondo well,
but still reflects its weaker balance
sheet. Last week, BP made a $3.5bn
issue in the US as it returned to bond
markets for the first time since 2009.
nism for Greece but say Athens has not
yet asked to activate plan.
● 23 April Prime Minister George
Papandreou asks for activation of an
EU/IMF aid package €110bn.
● 2 May Greece seals a deal with the
EU and IMF opening the door to a multi-
billion euro bailout and extra budget cuts
of €30bn.
● 10 May Global policymakers set up $1
trillion fund to stop the Greek crisis
destroying the euro.
● 4 Oct Greece says in budget for 2011
that it will cut debt to seven per cent of
GDP. China offers support by buying
bonds to help to kickstart the economy.
ECB RAMPS UP BOND-BUYING
The European Central Bank said its
purchases of government bonds in
the past week rose to their highest
level in three months, against a back-
ground of increasing market fears for
the financial health of Ireland and
Portugal. The news is further evi-
dence of the euro zone's uneven
progress out of the crisis.
EMERGING-MARKET BONDS ATTRACT
FOREIGNERS
Foreign investors are rushing into
emerging-market bonds from
Indonesia to Mexico, bearing foreign-
exchange risks that used to be held by
locals. The latest evidence came when
the Asian Development Bank report-
ed that foreigners are taking an ever
bigger chunk of locally issued debt,
alleviating the need for businesses
and government to borrow in dollars
or other hard currencies.
CITYA.M. 5 OCTOBER 2010
Banks to boost business loans Alliance Boots will slash
BANKING
▲
BY EMMA SADOWSKI
BRITAIN’S banks are set to propose a
collection of measures to help boost
lending to small businesses in a bid to
persuade ministers they are prepared
to aid long-term economic growth.
A task force consisting of chief
executives from every major British
bank, reported by Sky News, was set
up three months ago and will recom-
mend the establishment of a fund,
which each bank would inject money
into.
World Bank
calls for calm
on currencies
CURRENCIES
▲
BY HARRY BANKS
WORLD  BANK President Robert
Zoellick yesterday called for policy
actions to quell growing tensions over
currencies and to shore up confi-
dence in the sputtering global eco-
nomic recovery.
Zoellick said slow growth in
advanced economies and the threat
of asset bubbles in booming emerg-
ing market countries present grow-
ing risks that global finance officials,
who gather in Washington later this
week, need to tackle.
The uneven pattern
of world growth has raised concerns
about tit-for-tat policy responses as
nations seek to protect their trade
competitiveness.
Japan intervened in foreign
exchange markets for the first time in
six years on 15 September to drive
down the yen, as several emerging
markets have done with their curren-
cies, prompting Brazil last week to
warn of a “currency war.”
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It is understood that the fund,
which is currently subject to approval
from individual board members, will
seek to provide equity for a number
of smaller businesses across the UK
and will be managed centrally. This
means that each of the banks will be
an investor in the companies that the
fund invests.
An announcement is expected in
roughly a week’s time, where the
plan will be detailed including how
each bank will contribute to the fund.
A statement from the British
Bankers Association issued yesterday
“Money is chasing yield. It can’t find
those yields in developed economies
and this is not only pushing up curren-
cy values in developing countries...
[but] also pushing up prices in assets
with the risk of bubbles in property
and some commodities,” said Zoellick
ahead of meetings this week of
the  World  Bank  and International
Monetary Fund.
The Institute of International
Finance (IIF), which represents over
420 member banks in more than 70
countries, said emerging market
nations were concerned their curren-
cies could become “unduly strong”
given the low interest rate environ-
ment was expected to continue in
developed economies for longer than
initially thought. “The near-term dan-
ger, however, is that this upward pres-
sure escalates and market adjustment
becomes disorderly, causing renewed
strains in global financial markets
and, possibly, igniting policy tensions
and, possibly, protectionist measures
between key economies, most obvious-
ly, the US and China,” the IIF added.
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said: “The banks formed a Taskforce
on Business Lending in July. We have
been working with both government
and representatives of the business
community since then. We are due to
present our report to the chancellor
and the Business secretary of state
shortly and will then publish it in
full.
“The report will be comprehensive
and will contain important and wide
ranging recommendations. We will
not be making any comment on the
detail of its contents until after the
discussion with the ministers.”
Dick Costolo will become the new boss at Twitter
Twitter boss tweets in
new chief as replacement
▲
TECHNOLOGY
TWITTER co-founder Evan Williams
will hand the chief executive job to
chief operational officer Dick Costolo,
who joined the fast-growing
microblogging company about a year
ago to spearhead its money making
efforts.
Williams will focus completely on
product strategy effective immediate-
ly, he said in his blog.
Costolo joined Twitter as chief
operating officer in September 2009
after he sold FeedBurner, a web com-
pany he had co-founded, to search
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900 jobs across the UK
▲
RETAIL
ALLIANCE Boots will shed 900 non-
store jobs over the next three years, in
a bid to cut costs.
The group, which specialises in
chemist and beauty services, said the
cuts would not affect staff in its stores
and that it hoped to achieve the cuts
where possible through natural staff
turnover and redeployment.
Alliance Boots, which was bought
Picture: GETTY
giant Google in 2007.
Costolo launched Twitter’s first
efforts at selling ads on its service ear-
lier this year. Costolo said the so-
called Promoted Tweets and
Promoted Trends advertising services
were “successful beyond our wildest
dreams”.
He said that privately-held Twitter
does not disclose revenue or com-
ment on whether the company is
profitable. Williams said Twitter has
more than 165m registered users, up
from just 3m when he became chief
executive two years ago.
*
*
News 3
by US private equity firm Kohlberg
Kravis Roberts for £11bn three years
ago, said the cost cutting measure
should save it roughly £56m per year
by 2013-2014.
The cuts are expected to take place
in the group’s beauty and health divi-
sion will take place in Nottingham, at
the company’s UK base.
The company employs up to
115,000 people worldwide, with
70,000 in the UK.
KPMG joins
rivals on new
hiring spree
▲
ACCOUNTANCY
BIG FOUR accounting firm KPMG has
joined the ranks of its accountancy
rivals as it plans to recruit 8,000 new
staff across Europe within the next
three years.
The hiring spree, as reported in the
Financial Times, will see the firm’s
British arm grow by 3,000 new staff
over the period.
Once the recruitment drive is done,
KPMG will have bolstered its head-
count in the UK from 11,000 to 14,000
and its European offices, excluding
France and Italy, will increase to
38,000 employees.
The move by KPMG follows similar
announcements by Big Four rivals
Deloitte Touche Tohmatsu and Ernst
& Young (E&Y).
Deloitte revealed plans earlier this
year to add 55,000 new staff across its
global office network in the next five
years, while hiring plans for E&Y are
expected later today.
John Griffith-Jones, joint partner of
KPMG’s European business, said that
although the past few years have been
difficult, the audit giant sees a lot of
opportunities opening up again.
Accounting firms were hit hard dur-
ing the recession, with the largest
firms recently receiving criticism for
their auditing practices.
E&Y PROBE:P5
CITYA.M. 5 OCTOBER 2010
Second probe into
E&Y over Lehman
Brothers collapse
PROFESSIONAL SERVICES
▲
BY HARRY BANKS
THE accounting watchdog yesterday
opened a second investigation into
auditor Ernst & Young (E&Y) over its
auditing of failed US investment
bank Lehman Brothers.
The probe will examine what E&Y
told UK regulators about how
Lehman Brothers was complying
with client asset protection rules.
“The Accountancy and Actuarial
Discipline Board (AADB) has begun
an investigation under its accountan-
cy scheme into the conduct of Ernst &
Young, auditors to Lehman Brothers
International (Europe),” the account-
ing watchdog’s board said.
The board has powers to impose
sanctions ranging from a reprimand
to unlimited fines and withdrawal of
registration to operate.
Ireland’s growth rate
cut as Budget looms
WORLD ECONOMY
▲
BY HARRY BANKS
IRELAND’S economy will crawl to a vir-
tual halt this year, defying government
hopes of modest growth, the central
bank said yesterday, underlining the
challenge the country’s leaders face to
revive its fortunes.
Brian Cowen, the Irish Prime
Minister, will unveil a four-year plan
next month for tackling the worst
budget deficit in the EU and prospects
of a recovering domestic economy
helping to narrow the gap appear
remote.
The central bank cut its growth fore-
cast for Gross Domestic Product (GDP)
this year to just 0.2 per cent from 0.8
Abramovich threatens action
over Irish Nationwide fallout
IRISH CRISIS
▲
BY HARRY BANKS
THE Russian billionaire and Chelsea
football club owner Roman
Abramovich may take legal action
against the Irish government over its
decision to make subordinated bond-
holders in Irish Nationwide (INBS) pay
part of the bill for dealing with the
building society’s huge property losses.
“We urge Irish authorities to re-con-
sider their position on INBS subordi-
nated bonds and come out with a
detailed plan on what is going to hap-
pen to this institution,” a statement
The new probe will look at what
E&Y reported to the Financial Services
Authority (FSA) about Lehman’s com-
pliance with the FSA’s client asset
rules, which govern the protection of
client money.
The probe by the AADB, which is
part of the Financial Reporting
Council (FRC), a regulator, covers the
year that ended 30 November 2007.
The board opened its investigation
after the FSA raised some issues.
Lehman collapsed in September
2008, bringing the global financial
system to its knees and leading to a
round of sweeping regulatory
reforms.
E&Y, one of the “Big Four” global
auditors, confirmed it has been
approached by the AADB in relation
to reporting on client assets. “We will
cooperate fully with the investiga-
tion,” the accountancy firm said .
per cent previously and said that,
given international fears about
Ireland’s finances, the government
could not shy away from steeper cuts
despite the bleaker outlook.
But analysts warned a continued
diet of bad news on the economy for
Ireland’s recession-weary consumers
could tip the country into another
slump. “Against the background of
sharply increased concerns about fis-
cal sustainability, the main priority in
the short term is to ensure that the
2011 budget credibly demonstrates the
first step of a reprogrammed tighter
fiscal plan,” the central bank said in its
latest quarterly bulletin.
Cowen shocked taxpayers last week
when he revealed they may end up
from Abramovich’s investment vehi-
cle Millhouse said yesterday.
“In the meantime, we are fully pre-
pared to vigorously defend our posi-
tion using all possible legal means.”
Ireland said last Thursday it expect-
ed bondholders in INBS and nation-
alised lender Anglo Irish Bank to
The Chelsea football
club owner is not
happy about taking a
loss on his Irish invest-
ments.
News 5
John Laing rules
out seeking new
LSE stock listing
▲
CONSTRUCTION
CONSTRUCTION company John Laing
is not seeking a flotation, its chief
executive said yesterday, denying a
report it was eying a £600m London
Stock Exchange listing by end of 2010.
“The company is not being floated, I
can tell you categorically,” Adrian
Ewer said, after describing the report
as “total rubbish”.
Separately, an article published last
week by trade magazine
Infrastructure Journal said John
Laing, which is owned by fund manag-
er Henderson Group, was looking to
tap public equity markets via a float of
an infrastructure fund.
“The company first thought about
this notion in 2005 and has been
thinking about it ever since. It is some-
thing that at some point in time the
company may do,” Ewer said.
“That is just part of the way in
which we might recycle capital to
invest in new infrastructure projects,”
Ewer said, declining to give detail on
the sum the company would seek to
@
Lehman was declared bankrupt in September 2008 Picture: Micha Theiner/City A.M. raise.
@
with a clean-up bill of up to €50bn
(£43.2bn) following years of reckless
bank lending during the boom years
of the “Celtic Tiger” economy.
The bank bill will quadruple
Ireland’s debt levels from 25 per cent
of GDP before the crisis to an estimat-
ed 99 per cent and means Cowen will
have to make fiscal adjustments next
year above an initial target of €3bn.
@
The premium investors demand to
hold Irish debt rather than German
Bunds, which blew out to a record 475
basis points (bps) last week, has nar-
rowed since and eased further to 415
bps yesterday on the prospect of Irish
pension funds buying bonds. The cen-
tral bank is hoping consumer demand
will slowly start to pick up next year.
make “a significant contribution”
towards meeting the cost of a bill of
up to €40bn (£34.6bn) for cleaning up
their years of reckless lending.
Both bonds are trading at signifi-
cant discounts in the secondary mar-
ket.
Anglo Irish, which has €2.4bn in
subordinated bonds, accounts for
over two thirds of Ireland's “worst
case” bank bill of €50bn. Irish
Nationwide will cost taxpayers MORE NEWS WWW.GANT.CO.UK
€5.4bn.
Abramovich’s vehicle said it was
ONLINE 26 CANADA SQUARE
CANARY WHARF
unfair to make Irish Nationwide’s www.cityam.com LONDON E14 5AX
TEL 020 7715 7470
bondholders take losses.
 6 News CITYA.M. 5 OCTOBER 2010

RSA buys Canada’s GCAN to

create fourth-largest insurer
would generate a mid-teens invest- RSA shares finished flat for the day,
▲

INSURANCE
BY HARRY BANKS
INSURER RSA said it had agreed to
buy Canada’s GCAN for 420m
Canadian dollars (£259m), underscor-
ing its takeover ambitions with a deal
that creates Canada’s fourth-biggest
general insurer.
RSA, best known in Britain for its
More Than home and motor insur-
ance business, said the deal would
boost earnings immediately, and
ment return.
The deal comes weeks after RSA
made an unsuccessful £5bn bid
approach for British rival Aviva’s gen-
eral insurance operations in the UK,
Ireland and Canada.
Buying GCAN, currently owned by
the Ontario Teachers’ Pension Plan
Board, ranks as RSA’s biggest takeover
since it bought out minority investors
in Danish insurer Codan for £590m
three years ago.
slipping 0.1p to 132.5p while the
benchmark FTSE 100 share index
ended 0.6 per cent lower at 5,555.97.
The 300-year old RSA, which has
traditionally pursued small bolt-on
acquisitions, is funding the GCAN
deal from its own cash resources. The
group has around 23,000 employees
and in 2009 its net written premiums
were £6.7bn. Integration costs are
estimated at around £12m, with the
majority coming in the first year.

Sanofi boss Chris Viehbacher wants to buy Genzyme to boost his firm’s drug portfolio

Sanofi goes
hostile with
Genzyme bid
Genzyme to boost Sanofi’s drug portfo-
▲

PHARMACEUTICALS
BY STEVE DINNEEN
FRENCH drugmaker Sanofi-Aventis
yesterday carried through with its
threat of launching a hostile bid for
rival Genzyme.
The firm has taken an offer of $69
(£44) a share directly to investors, valu-
ing the firm at $18.5bn, after Genzyme
management refused to negotiate.
The move comes a month after
Genzyme rebuffed an approach from
Sanofi at the same price. Sanofi has
since been talking to Genzyme
investors, who it said were frustrated
by the management’s stubborn
approach.
Sanofi’s unsolicited offer, all in
cash, will expire on 10 December.
Sanofi chief executive Chris
Viehbacher said: “Sanofi-Aventis has a
history of being a patient, disciplined
buyer. We believe the offer will be suc-
cessful ultimately.”
Viehbacher, who wants to buy
lio as sales of older medicines decline,
said his strong preference was for
friendly talks, but he had decided to
start a tender offer because of
Genzyme’s refusal to enter discussions.
Viehbacher said he met with
Genzyme chief executive Henri
Termeer but the talks were “unproduc-
tive”. Sanofi says it has also talked with
Genzyme shareholders who own more
than 50 per cent of the group, and
these people support the bid.
ANALYSIS l Sanofi-Aventis
51 €
48.01
4 Oct
49
47
45
5 Jul 23 Jul 12 Aug 1 Sep 30 Sep

The battle will push the price higher

SANOFI is feeling a little green around
the gills. As the hopes of preventing
cheaper generic versions of its
Lovenox blood thinning drug appear
to fade, it needs something else in the
medicine cabinet – and it needs it fast.
The problem it faces is that shrewd
Genzyme investors know this. Sanofi
claims it has shareholders onside
with its $69 a share offer – already a
38 per cent premium to its pre-bid
price – but with Genzyme manage-
ment confident the firm is worth at
least $75 a share it will face a struggle
to convert the apparent goodwill into
a decision to sell up.
Any offer in the mid-70s per share
could lead to double digit earnings
accretion for Sanofi and there has
been speculation it has held talks
with its bank about raising extra
capital for a higher bid. Conversely,
any more than $75 a share would
stretch the French firm too far.
The acquisition could give Sanofi
the lease of life it requires, allowing it
to break into new high-margin rare
disease drugs. However, it is not with-
out risk – Genzyme has been struck
with troubles of its own, including
contamination issues at its main
plant, and there is no guarantee the
purchase will bear fruit immediately.
With Sanofi’s offer not due to
expire until 10 December, both sides
will now dig themselves in for a war
of attrition. The question is who will
blink first.
BOTTOMLINE
Analysis by Steve Dinneen
 8 Conservative Conference
Prime Minister David Cameron runs along the Worcester and Birmingham canal ahead of today’s speech
Cameron has to work
hard to eclipse BoJo
POLITICAL EDITOR
DAVID CROW
The Halifax Reward
I
N the run-up to this confer-
ence, Tory strategists promised
a more upbeat tone. Ed
Current Account. Miliband’s claim that Labour
is the optimistic alternative to the
dour coalition cutters appears to
Make the jump to simple, have hit home.
The Conservatives have done
their best to trot out popular
great value banking. announcements on high-speed
rail and education scholarships
for the armed forces, but these are
just old policies re-heated to pro-
At Halifax we like to look after our customers. vide some conference cheer.
That’s why our Reward Current Account gives you HARD TIMES
£5 each month. And moving to us is easy, our The only substantive thing the
Switching Team take care of everything for you. government announced yesterday
was cuts to child benefit for high-
To get your fiver just pay in £1,000 each month. er rate tax payers and a cap on
benefits for the unemployed.
To find out more, pop into branch, call us Try as they might, the spinners
on 0845 122 1425 or visit halifax.co.uk can’t put a positive gloss on that.
Prisoners set to work 40-hour week
CONSERVATIVE
CONFERENCE
BY DAVID CROW
KEN Clarke, the justice secretary, will
today unveil plans to make prisoners
work a 40-hour week and hand their
wages over to victimsupport groups.
Currently, relatively few prisoners
Pay in £1,000 each calendar month to receive £5 (net)/£6.25 (gross) monthly. Reward paid net of income tax (at work in real, salaried employment,
the rate specified by law, currently 20%). Higher rate tax payers may need to pay additional tax on the reward but the government is planning to
Call us, go online or visit one of our branches for more information on all fees and interest rates. Available only to make it easier for private companies
personal customers, aged 18 or over and who are resident in the UK. Halifax is a division of Bank of Scotland plc
Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. to employ prisoners in regular nine-to-
five jobs.
“We would really have liked to
come to conference with loads of
goodies to announce, but the cup-
board is bare,” a senior party
strategist moaned.
BOJO KNOCKS ‘EM DEAD
With delegates down in the dol-
drums, Boris Johnson is only too
keen to provide a spot of light
relief.
The most popular fringe event
so far has been the Rally for Boris,
organised by grassroots website
ConservativeHome (sadly, the New
Statesman held its own, poorly
attended, party at the same time).
And yesterday, the London
Mayor delivered a barnstorming
speech with inimitable bluster
and bombast: the crowd lapped it
up.
He took no prisoners, in a
speech that hit out a trade union-
ists – much to the mirth of his
audience – but also warned cen-
tral government to spare London
from the worst of swingeing cuts.
“If you come to City Hall, I can
show you the physical evidence of
the cuts we have been making,”
Boris said in what sounded like a
direct invitation to the chancel-
lor.”
He added: “A whole Marie
Prisoners will be allowed to keep a
small stipend of around £10 a week,
with the rest of their earnings provid-
ing compensation for the victims of
crime.
“I want to revive a policy of John
Major’s government and make deduc-
tions from the earnings of working
prisoners to provide compensation for
victims of crime,” Clarke will tell dele-
gates at the Tory party conference in
Birmingham today.
He is expected to say: “If we want to
boost the amount that can be provid-
ed for victim support, we need as
CITYA.M. 5 OCTOBER 2010
Picture: PA
Celeste floor of deserted desks
waiting to be rented out to anoth-
er agency”.
David Cameron’s aides insist he
is completely relaxed about Boris’
popularity, but it surely must ran-
kle. His speech tomorrow is
unlikely to elicit the same tub-
thumping that accompanied the
mayor’s speech.
What about Boris for PM?
Well, if the results of my quick,
and entirely unscientific, straw
poll are anything to go by, party
activists would be thrilled to see
him as Tory leader.
A JOKE FROM GEORGE
To give them their due, George
Osborne’s speechwriters have also
been doing their best to lighten
the mood.
The chancellor – who has a
famously terse relationship with
business secretary Vince Cable –
made light of their mutual wari-
ness with a joke about the feuding
Milibands.
The chancellor said: “People
said we wouldn’t get on, that we’d
trade cruel nicknames, that we
would knife each other in the
back, that we’d try to end each
others’ careers. Who do they think
we are? Brothers?”
many prisoners as possible to work. In
order to raise those funds, we need to
instil in our jails a regime of hard
work.”
An aide to the justice secretary said
it was hoped industries with labour
shortages would take advantage of
prison workers.
Most of their earnings will go to vic-
tims, but companies will still have to
pay prison workers the national mini-
mum wage.
Initially, the scheme is expected to
raise about £1.1m-a-year for victim
support groups.
CITYA.M. 5 OCTOBER 2010 Conservative Conference 9

Osborne mulls fresh

levy on bank profits
CONSERVATIVE
CONFERENCE
BY DAVID CROW IN BIRMINGHAM
GEORGE Osborne is prepared to
introduce a new tax on banks’ prof-
its and pay, which is likely to be
implemented if they fail to show
restraint in the forthcoming bonus
round.
The chancellor told delegates at
the Tory party conference in
Birmingham that he wanted to see
“genuine talent rewarded”, but
warned the government would pur-
sue another levy if banks pay out
politically unpalatable bonuses.
He said: “I want Britain to be the
home of successful, competitive
and stable financial services. But George Osborne has
let me make this clear: we will not warned he will not toler-
allow money to flow unimpeded ate banks paying out
out of those banks into huge politically unpalatable
bonuses, if that means money is bonuses Picture: PA
not flowing out in credit to the
small businesses who did nothing
to cause this crash and suffered an FAT could be brought in with- Treasury officials have been
most in it.” out a broad international agree- emboldened by the level of global
Aides to the chancellor said any ment, as long as there is an accord consensus on the levy on balance
new levy on the banks would take in a handful of countries, like sheets, which is being adopted in
the form of a so-called financial France, Germany and the US. the UK, US, France and Germany.
activities tax (FAT), essentially a tax The chancellor is planning to dis- According to one Treasury aide,
on profits and remuneration, cuss the FAT with other finance this limited arc of support consti-
which was first mooted by the ministers at international meet- tutes an “international agree-
International Monetary Fund (IMF). ings like the G20 to gauge support. ment”, even though emerging
Previously, the government has Even if nations like Hong Kong, banking centres like Hong Kong
said it would only introduce an FAT which is fast-becoming a major have refused to sign up. “We
if it could secure international international banking centre, believe the degree of international
agreement, due to fears that banks refuse to sign up to the FAT, the co-operation combined with the
could relocate overseas to avoid the government is prepared to press level at which it is set is enough to
levy. But Treasury officials think ahead with the plans. stop banks leaving the UK,” he said.

Single income families take The Halifax Reward

Current Account.
hit on child benefit change Make the jump to simple,
TAX child benefit will lose their entitle- The picture is worse for single
great value banking.
▲

BY MATTHEW WEST
SINGLE income families will be the
hardest hit by the changes to child
benefit if their income breaches
£44,000, an analysis by KPMG has
ment to it, a move ministers
believe will save the Treasury £1bn
a year. The measures would only
affect those earning over £44,000.
However, an average family of
four will find itself £1752.40 worse
income families with an income of
£44,000 as this family would again
lose £1752.40 in child benefit. But With our simple, straightforward overdraft fees it’s easy
this would be the equivalent to to work out how much using your overdraft will cost;
5.43 per cent as a proportion of
household income, KPMG says. s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬YOUR¬ARRANGED¬OVERDRAFT¬ON¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
shown. off each year under the proposals if Meanwhile and somewhat per- AMOUNTS¬UP¬TO¬AND¬INCLUDING¬a¬¬
¬ ¬ ¬ ¬ ¬ ¬¬
While the chancellor’s decision one parent earns over the £44,000 versely, a typical family of four
to scrap child benefit for higher limit. where both parents earn just s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬YOUR¬ARRANGED¬OVERDRAFT¬ON¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
rate taxpayers only removes the KPMG says that a family where under the threshold of £44,000 will AMOUNTS¬OF¬OVER¬a
¬ ¬ ¬
benefit from those who might both parents are working, with one still receive child benefit. So a fam-
arguably be able to afford to live earning a salary of £47,000 and the ily of four with a combined income s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬AN¬UNARRANGED¬OVERDRAFT
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
without it the decision will be seen other £25,000 – giving a combined of £79,000, would be entitled to
as an unfair tax increase by many. income of £72,000 – would lose claim child benefit despite earning s¬!S¬WE¬CHARGE¬FEES¬ON¬THIS¬ACCOUNT¬INSTEAD¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
Under the proposals, from 2013 3.29 per cent of its household almost twice as much as a single of interest, the typical rate is 0% EAR.
around 1.2m families in receipt of income. income family.
!ND¬THATS¬IT¬.O¬INTEREST¬TO¬PAY¬.O¬SET¬UP¬FEE¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
IMPACT OF CHILD BENEFIT CUT Source: HMRC !ND¬NO¬COST¬WHEN¬YOU¬DONT¬USE¬IT¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
Tax Rate Annual Income Benefit Keep or Cut? )F¬ONLY¬ALL¬OVERDRAFTS¬WERE¬SO¬SIMPLE¬
¬ ¬ ¬ ¬ ¬ ¬ ¬
Lower £43,875 or less £1,752.4 3 To find out more, pop
into branch, call us
on 0845 122 1425
Higher £43,87 or more 0 6 or visit halifax.co.uk

2x Lower £87,750 £1,752.4 3

Lower (2 x £43,875)
1x Lower £87,751 0 6 Call us, go online or visit one of our branches for more information on all fees and interest rates. EAR is the equivalent annual
rate. This is the actual annual interest rate for an overdraft. It does not take into account fees and charges. Overdrafts are
1x Higher £43,875 + £43,976 repayable on demand. Available only to personal customers, aged 18 or over and who are resident in the UK. Halifax is a
division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
Note: Higher rate tax begins after earning £43,875 (£37,400 + Personal Allowance of £6,475)
 Exc
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Com
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WHERE THERE’S
ROOM FOR
IMPROVEMENT,
WE’LL FIND IT.
• • • • • • •

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CITYA.M. 5 OCTOBER 2010 Focus on Tube strikes 11

TfL beats chaos as

Commuters were
hit as 60 per cent
of Tube trains did
not run yesterday
and 25 per cent of

Tube keeps running

stations were
closed as a result of
union strike action
over proposed job
cuts

Picture:
REUTERS yesterday as the strike, which began

▲
TRANSPORT
BY EMMA SADOWSKI
TRANSPORT for London (TfL) operat-
ed 40 per cent of its Tube services yes-
terday as the second 24-hour strike
launched by trade unions RMT and
Transport Salaried Staffs’ Association
(TSSA), hit the capital.
The transport group said that 10 of
the 11 lines that make up the
Underground network ran services
on Sunday night, finished yesterday
evening.
It is expected that London
Underground services will operate a
near normal service this morning.
TfL struck out at the unions, call-
ing their predictions of “paralysis” to
Tube services as a failure.
The RMT and TSSA unions are at
odds with Tube management over
proposals to axe 800 ticket office jobs.

Boris calls for

tougher laws
▲

TRANSPORT
BY DAVID CROW
BORIS Johnson has called for a
change to Britain’s trade union laws,
in a bid to prevent a repeat of yester-
day’s crippling Tube strikes.
The London mayor used his speech
at the Tory party conference in
Birmingham to call for new legisla-
tion, which would force trade unions
to win the support of 50 per cent of
members before going on strike.
Currently, unions only need to get
the support of the majority of mem-
bers who actually cast their ballot,
meaning industrial action is deemed
legal even if turnout is very low.
“It cannot be right that a ballot
can lead to strike action when less
than half the union members take
part,” Johnson said.
Transport secretary Philip
Hammond also condemned the Tube
strikes, and called on Labour leader
Ed Miliband to voice his opposition.
He said: “Ed Miliband is failing to
come clean on what he thinks about
these hugely disruptive and pointless
tube strikes.
“Now he must answer two ques-
tions: does he condemn these point-
less strikes that are causing
disruption to Londoners, and will he
encourage Underground workers to
cross picket lines and keep our capital
city moving?”
Miliband refused to respond to the
Tory challenge.
Aides said the Labour leader did
not want to get into the habit of “pro-
viding a running commentary on
every bit of industrial action”,
although they pointed out that he
has opposed Tube strikes in the past.
Bob Crow, leader of Tube driver’s
union the RMT, defended his mem-
bers’ decision to strike and called on
Johnson to resolve the dispute
through negotiations.
Crow said: “Instead of playing to
the Tory gallery and attacking his
staff the mayor should take this hard-
ening dispute seriously and meet
with the unions as a matter of
urgency.” The TUC also condemned
Johnson, saying it would be a betrayal
of the government’s claim to want
better relations with the unions.

CITY VIEWS: IS BORIS RIGHT? SHOULD STRIKES BE

STOPPED? Interviews by Emma Sadowski

NICK LAWTON | FDM GROUP

“Since the Tube workers have abused the right to strike
for so long, the Mayor has a point. These lot are making a
joke of it by striking on a regular basis.”

SAM DAVYSON | THREADNEEDLE

“No, I don’t think Boris has a point. It’s a good thing
that the workers feel they have a right to strike. The
Mayor should listen to what they want. I under-
stand their cause – they want to keep their jobs.”

GARY SHERWIN | BEGBIES TRAYNOR

“People should have the right to strike and I agree with
it in principle. But my opinion is that Tube workers exer-
cise the right to strike more than others and that
right does get used as a form of blackmail.”
 12 Focus on UK bank levy
The UK bank levy risks tarring banks as toxic
the final draft will be published
towards the end of the year. The levy
will be introduced from 1 January
2011. As that hurried timetable sug-
gests, the consultation is concerned
only with working out the finest of
details, rather than providing an
opportunity to challenge the advisa-
CITY COMMENT bility of the levy itself.
The Treasury consultation docu-
MARC SIDWELL ment is clear on what the bank levy is
not intended to be: it is not a fund for
T
HE Treasury’s consultation on future bailouts. Instead, the UK’s
the introduction of a UK bank bank levy has two stated purposes:
levy closes today. Draft legisla- firstly, “to encourage banks to move
tion will be published in the away from riskier funding”; and sec-
autumn for further comment and ondly, to tax large banks for being a
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lasting danger to the economy. The
first is presented with little argu-
ment, while the second is alarming.
The consultation response by the
Institute of Directors (IoD) addresses
the first rationale in detail. As the IoD
points out, in principle pricing risky
behaviour to account for its costs is
preferable to a ban. But we cannot
assume the levy will achieve this. An
effective levy in this sense might
require an internationally uncompet-
itive and therefore impractical rate.
The IoD concludes: “full computa-
tions of appropriate levels, linked to
the costs that need to be priced in,
should be published for public scruti-
ny”. Without data, this claim lacks
substance.
We are left with only one real justi-
fication for the levy. In the consulta-
tion document’s own words: “It is fair
and it is right that banks should
make an appropriate contribution,
which reflects the many risks they
generate.” The banking industry
understands that it has to reform
itself and win back the public’s trust:
many City representatives met yester-
day at Mansion House to discuss this
very problem. Can it really be helpful
as part of that process to have the gov-
ernment expressly target banks as a
hazardous, costly presence in the UK?
IoD: New tax
could drive
banks abroad
▲
REGULATION
BY STEVE DINNEEN
THE Institute of Directors (IoD) has
warned the government that plans to
introduce a banking levy could drive
banking business overseas.
The IoD claimed the tax is a knee-
jerk reaction designed to tap into
anti-bank sentiment.
It said that the proportionally large
UK tax – £2.5bn a year compared to
€1.2bn (£1bn) in Germany – risks jeop-
ardising the UK’s position as a pre-
mier finance centre. It also criticised
taxing institutions which are largely
owned by the public.
While the IoD says the proposed
levy of £2.5bn a year by 2013 is man-
ageable, it believes it could pave the
way for further taxes to be intro-
duced, especially if Labour are voted
in at the next election.
Miles Templeman,
director general of the
Institute of Directors,
warned against the
banking levy.
HSBC’s Geoghegan warns of risk
from uncertainty of UK regulation
▲
REGULATION
HSBC’s chief executive said while
Europe’s biggest bank was happy to
keep its base in London, uncertainty
about regulation and the business cli-
mate were risks to the city as a lead-
ing financial centre.
“Uncertainty is currently the
biggest risk to the City’s competitive-
ness,” Michael Geoghegan, who will
step down from the role at the end of
the year, said yesterday.
Britain should adopt a “clear and
consistent policy” on regulation and
the business environment, he said in
a speech, adding the country needed
to support international banking
CITYA.M. 5 OCTOBER 2010
Note too the slippery nature of that
word “appropriate”. Many were
pleased that George Osborne did not
set the UK levy far higher. But there is
no guarantee that it will stay where it
is. Ed Miliband has implied he would
like to see it higher still. The Liberal
Democrats wanted it higher as well.
Osborne will not always be chancel-
lor.
This levy is an uncompetitive policy
that has more to do with feeding pub-
lic resentment than with preventing
another crisis. In leaving the banks at
the mercy of future political calcula-
tions, it has the potential to help cre-
ate one instead.
The government hopes to avoid
companies simply changing their
domicile by applying the levy to banks
conducting business in the UK.
However, the IoD warns that corpora-
tion tax revenues would be under-
mined if companies are forced abroad.
Miles Templeman, director-general
of the IoD, said: “There is clearly pub-
lic concern about how some of the
banks have behaved which needs to
be addressed, but this should be done
in a way that doesn’t encourage the
banks to move their headquarters out
of the UK.
“There is a risk that the bank levy,
as currently designed, will drive bank-
ing business away, while doing noth-
ing to reduce the risks that banks
pose to the wider economy.”
The IoD also said George Osborne
has a mountain to climb on tax com-
petitiveness.
It said the coalition is heading in
the right direction on tax policy, but
has a “very long way” to go if it wants
to stem the exodus of business and
attract new investment to the UK.
The UK’s corporation tax rate of 28
per cent means that 18 out of 31
OECD countries have lower rates.
and trade to avoid rival cities catch-
ing up with London as a financial
hub.
Asked whether HSBC would move
its headquarters to Hong Kong,
Geoghegan said: “The board is more
than happy to have its head office in
London ... the best for us at the cur-
rent time is to have our headquarters
in London but to have a strong opera-
tion in Hong Kong and a strengthen-
ing operation in Shanghai”.
Geoghegan moved to Hong Kong
earlier this year, fuelling speculation
HSBC could move its base back to
Asia in coming years.
His replacement, Stuart Gulliver,
will also be based in Hong Kong.
 The Capitalist
13
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

ENLARGED For £10,

RETURNS TO
GREET M&S
SHOPPERS
FINALLY – the working man’s answer to the
wonderbra has arrived: M&S has just
unveiled its brand new range of “enhanc-
ing underpants” for men. The pants come
in two styles: “a bum-lift pant” and a
“frontal enhancement pant”, one intended
to project the image of a well-firmed poste-
rior and the other giving City money men
an easy way to, ahem, manage their
endowments.
But M&S isn’t fannying about: it gives
buyers a firm promise of “38 per cent visu-
al enhancement in size” – not a bad return
on an investment of just a tenner. Hard-
nosed investors should note that the “bum-
lift pant”, which will set you back a little
more at £15, promises only a “20 per cent
lift”, but Dave Binns, M&S’s head of buying
for men’s underwear, says it’s a good deal:
“Our technologists have worked hard to
engineer two styles that are comfortable to
wear and that give real results,” he says.
The Capitalist recalls that when former
chief executive Stuart Rose joined the
retailer, he made a statement of faith in its
products by wearing M&S suits. So with his
firm trail-blazing the way forwards in
men’s briefs, will incoming chairman
Robert Swannell make the same gesture?
Will incoming M&S chairman Robert Swannell buy his own firm’s enhancing pants?
BORIS CAESAR
Not many tech-savvy professionals have the
time to dive into Virgil or St Augustine, but
Google has gone ahead and released a
Latin-to-English translation service anyway.
“Veni, vidi, verba verti” read the announce-
ment: “I came, I saw, I translated”. The
search giant admits that the service will
probably not often be used to translate
Youtube.com captions or emails, but sug-
gests that it might be helpful for scholarly
research – and for those crucial moments
during a deal when you need to swot up on
legal terminology. At least the news has
been greeted enthusiastically in city hall –
London Mayor Boris Johnson, author of a
book on why Rome was run better than the
M&S’s brand
new frontal
enhancement
pants deliver
a 38 per cent
visual
enhancement
in size.
EU, released a statement almost imme-
diately: “Exspectata dies adest, amici!” he
wrote. “The long awaited day is at hand, my
friends. Congratulations to Google, and
let’s have English into Latin, too, followed
by English into Latin dactylic hexameters.”
Well, quite.
CITY LIGHTS
RBS last night played host to a gaggle of
bright young things as the City of London
Business Traineeship scheme hands out its
Trainee of the Year award. The outgoing
Lord Mayor Nick Anstee presented the win-
ning gong to precocious A level student
Connor Cassidy, who so impressed his UBS
supervisors that they extended his place-
Lord Mayor Nick Anstee presented gongs last night
ment beyond the usual 12 weeks. Others
in attendance included Sean Taylor of
Deutsche Bank Wealth Management,
Addleshaw Goddard’s Marcus Jamieson-
Pond and the Royal Bank of Canada’s
Gareth Hughes.
DRILL BABY
City oil tycoon Bryan Benitz has just added
another public venture to his extensive
energy portfolio – and this time, he’s bring-
ing Benitz Jr on board to manage the day-
to-day ops. Andrew Benitz, formerly of
Deutsche Bank’s oil and gas corporate
team, will be playing COO fiddle to his CEO
dad in the joint venture Longreach Oil &
Gas, which they just floated on the Toronto
stock exchange. The firm has acquired
shares of four licenses for energy prospects
in north Africa. In one, Longreach stands
to rake in a sizeable 30 per cent of returns
in proprtion to its share. And with the
father-son team aiming to outline specific
drilling targets early next year, Longreach
has given a whole new meaning to the

Future City after-work debates

every night this week
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 14 News CITYA.M. 5 OCTOBER 2010

Swiss banks hit by tough

new credit ratio rules
The new Swiss rules go well beyond lines should be implemented by 2013.
▲

BANKING
BY STEVE DINNEEN
SWITZERLAND has imposed strict
new rules on UBS and Credit Suisse,
telling them to hold far more capital
than their international rivals to
ward off a crisis that could cripple
the country.
The two banks must hold an equity
tier one capital ratio of at least 10 per
cent under the proposals laid out by a
government commission.
the new international standards set
out three weeks ago, which require
banks to hold a minimum core tier
one ratio of seven per cent.
Altogether the Swiss giants must
hold capital equal to a total of 19 per
cent of risk-weighted assets, com-
pared to a global agreement of just
10.5 per cent.
However, the Swiss institutions
have until 2018 to meet the supple-
mentary targets, while Basel III guide-
The Swiss commission of regula-
tors, bank executives and other indus-
try figures said that a mixture of
measures was needed to reduce the
risk of having banks with a “too big to Credit Suisse chief executive Brady
fail” problem. Dougan (r) and UBS chief executive
The new rules were seen as a move Oswald Grübel. Pictures: GETTY/ REUTERS
to restore confidence to Switzerland’s
crucial private banking industry, but
could crimp the ability of the coun-
NEW BANK CAPITAL RATIO RULES
try’s two biggest banks to compete in Core tier one ratios Target core tier one Target total risk
global investment banking. Q2 2010 ratio by 2013: weighted assets:

Barclays 10% 7% 10.5%

HSBC 9.9% 7% 10.5%

Lloyds 9% 7% 10.5%

RBS 10.5% 7% 10.5%

StanChart 9% 7% 10.5%

Credit Suisse 16.3% 10% (by 2018) 19% (by 2018)

UBS 16.1% 10% (by 2018) 19% (by 2018)

CITYA.M. 5 OCTOBER 2010
Construction outlook weak
▲
ECONOMY
BY HARRY BANKS
ACTIVITY in the construction sector
picked up in September, but firms’
confidence about the future fell to an
18-month low on worries about gov-
ernment spending cuts, a survey of
purchasing managers showed yester-
day.
The Markit/Chartered Institute of
Purchasing and Supply construction
PMI rose to 53.8 in September from
52.1 in August, confounding expecta-
tions for an easing to 51.4. A reading
above 50 indicates growth in activity.
The survey said growth in the
Physical gold
back in vogue
for super-rich
▲
WEALTH MANAGEMENT
BY HARRY BANKS
THE world’s wealthiest people have
responded to economic worries by
buying bars of gold, sometimes by the
tonne, and moving assets out of the
financial system, bankers catering to
the very rich said yesterday.
UBS executive Joef Stadler told the
Reuters Global Private Banking
Summit that fears of a double-dip
downturn had boosted the appetite for
physical bullion as well as mining
company shares and exchange-traded
funds. “They don’t only buy ETFs or
futures, they buy physical gold,” said
Stadler, who runs the Swiss bank’s
services for clients with assets of at
least $50m to invest.
UBS is recommending their top-tier
clients hold 7-10 per cent of their
assets in precious metals like gold,
which is on course for its tenth consec-
utive yearly gain and traded at around
$1,317 an ounce yesterday.
In a sign of the uncertain times,
some clients go further. “We had a
clear example of a couple buying over
a tonne of gold... and carrying it to
another place,” Stadler said. At today’s
prices, that shipment would be worth
about $42m.
ISA sales reach highest ever level Yell names Tony Bates as
after increase in personal allowances its new head of finance
▲
CONSUMER
BY MATTHEW WEST
ISA sales more than doubled in the
last year rising to a record figure of
£400m a month taking the total sales
figure to £14.6bn for the year, the
Investment Management Association
(IMA) said yesterday.
The figures showed ISA sales had
reached their highest level since they
were launched in 1999 as savers
showed a renewed enthusiasm for
investing in stocks and shares ISAs in
industry was led by the commercial
sector and civil engineering, which
reported its strongest activity since
February 2008. Activity in the house-
building sector fell, ending a 12-
month period of growth.
New orders remained in positive
territory in September, but the rate of
growth eased for a fourth successive
month and firms cut jobs at their
fastest pace in six months.
The mixed construction data comes
after a similar survey of factory pur-
chasing managers last week showed
the sector grew at its slowest pace in
10 months, indicating overall eco-
nomic growth is likely to slow sharply
Julius Baer’s chief investment offi-
cer for Asia is also recommending
that wealthy investors park some of
their assets in gold as a defensive
stance following a string of lacklustre
US data and amid concerns about
currency weakness. “I see gold as an
insurance,” Van Anantha-Nageswaran
said. “I recommend 10 per cent as
minimum in portfolios and anything
more than that to be used for trading
purposes, to respond to short-term
over-bought or over-sold signals.”
Billionaire financier George Soros,
echoing comments from investment
guru Warren Buffett, last month
described gold as the “ultimate bub-
ble” because it is costly to dig out of
the ground and has no real value
except its market price.
ANALYSIS l Gold Price GBP/oz
832.00
840 4 Oct
810
780
750
Aug Sep Oct
particular.
The IMA said this was largely as a
result of the increase in the annual
tax free personal allowance from
£7,200 to £10,200.
Meanwhile, an IMA survey of over
2,000 savers found almost half (47 per
cent) of savers would invest more into
an ISA if the annual allowance was
increased further.
Just over a third of savers (36 per
cent) said they would invest more if
long term savings incentives
remained consistent, while 44 per
from a 1.2 per cent expansion in the
second quarter.
“While the construction sector only
accounts for 6.3 per cent of national
output, the apparent substantial slow-
down in activity over July to
September adds to the evidence that
growth slowed markedly in the third
quarter,” said Howard Archer, econo-
mist at IHS Global Insight.
Deep upcoming government spend-
ing cuts will hit the construction sec-
tor particularly hard, with many
public building and infrastructure
projects likely to be shelved as the gov-
ernment seeks to eliminate its mas-
sive budget deficit over five years.
Philip Cox, CEO of International Power (l) with Gerard Mestrallet, CEO of GDF Suez SA Picture: GETTY
TOP FIFTEEN WORLDWIDE ANNOUNCED DEALS
Rank Date Target(% Sought/Acquired)
17/8/2010 Potash Corp of Saskatchewan (100%)
13/1/2010 Carso Global Telecom SAB de CV (100%)
10/8/2010 GDF Suez Energy International (100%)
22/4/2010 Qwest Commun Intl Inc (100%)
29/8/2010 Genzyme Corp (100%)
8/3/2010 American Life Insurance Co Inc (100%)
15/8/2010 British Sky Bdcstg Grp PLC (60.9%)
25/2/2010 Coca-Cola Entr Inc-NA Bus (100%)
21/2/2010 Smith International Inc (100%
30/9/2010 Zain Group (46%)
19/1/2010 The Williams Cos Inc-Gas (100%)
4/1/2010 Alcon Inc (24.6%)
15/2/2010 Zain Africa BV (100%)
30/6/2010 Polyus Zoloto (100%)
10/5/2010 Brasilcel NV (50%)
cent said they would invest more if
there was a lifetime tax-free ISA
allowance.
The findings could cause a
headache for the government which
is believed to be considering lowering
the personal allowance. Labour MP
and Treasury Select Committee mem-
ber, Andy Love, suggested at a fringe
event at the Labour party conference
last week that the coalition govern-
ment was considering the move as
part of the comprehensive spending
review due in a fortnight
News 15
IPO candidate Edwards
sees stronger second half
“For the second half of 2010
▲
TECHNOLOGY
Edwards has high levels of order cov-
EDWARDS Group, the vacuum tech- erage and anticipates underlying rev-
nology firm that is preparing for a enue growth over the first half with
sale or flotation, said it “rapidly recov- the contribution flowing through to
ered” from the global downturn and operating profit and cashflow,” the
would grow sales and profits further company said.
in the second half of the year. People familiar with the matter say
In a statement, the firm said first- Edwards’s private equity backers
half net sales rose 74 per cent com- value the firm at about £1.5bn.
pared to a year earlier, to £298m. Morgan Stanley, Goldman Sachs and
Earnings before interest, tax, depreci- Bank of America Merrill Lynch have
ation and amortisation (EBITDA) rose been hired as advisers for a potential
to £59.8m, from £2.2m a year earlier. deal.
M&A deals
surge to
2008 levels
▲
WORLD ECONOMY
WORLDWIDE merger and acquisition
(M&A) activity surged 21 per cent in
the last quarter showing the strongest
growth since 2008, new data from
Thomson Reuters showed yesterday.
The third quarter of this year saw a
total of $676.9bn (£427.2bn) worth of
M&A deals, it said.
The number of deals was up 3.8 per
cent year-on-year with over 29,000
deals announced since the start of
2010. M&A activity for the nine
months to the end of September is
now valued at $1.75trn - also up 21
per cent on last year.
Meanwhile, adviser fees on com-
pleted deals over the last three quar-
Jan 1 2010 – Sep 30 2010 ters jumped 38 per cent year-on-year
Acquiror Rank Value US$m to $19.8bn.
Deal activity in the US accounted
BHP Billiton PLC 43,180.5 for 49 per cent of the worldwide fees
America Movil SAB de CV 27,483.4 collected by advisers, Reuters said.
International Power PLC 25,090.2 Europe, the Middle East and Asia
CenturyLink Inc 22,170.2 (EMEA) accounted for 32 per cent and
Sanofi-Aventis SA 19,259.8
the Asia Pacific region and Japan con-
tributed 14 per cent respectively.
MetLife Inc 15,543.5 M&A activity in the US for the last
News Corp 13,730.4 three quarters of 2010 increased 21.9
Coca-Cola Co 13,440.7 per cent compared to the same period
Schlumberger Ltd) 12,223.6 last year to $732bn, representing the
Etisalat 11,771.8 first year-on-year increase since 2007.
Williams Partners LP 11,750.4 The largest deal in the last quarter
was GDF Suez Energy’s acquisition of
Novartis AG 11,120.4
International Power for $25bn in
Bharti Airtel Ltd 10,700.0 August. Energy company mergers
KazakhGold Group Ltd 10,261.1 accounted for six of the largest US
Telefonica SA 9,742.8 M&A deals this year, Reuters said.
that both Chief Executive John
▲
MEDIA
Condron and CFO John Davis would
YELLOW-PAGES publisher Yell leave the company by May 2011, send-
appointed Tony Bates, a former execu- ing its shares down 19 per cent on the
tive at telecoms provider Colt and day. Bates, who was also CFO of EMI
music label EMI, as its new finance from 2000 to 2002, said in a statement
chief yesterday. he saw the potential for Yell to “pros-
Bates, 54, said in July he would step per considerably” thanks to its strong
down as CFO of corporate telecoms brand, profitability and cash genera-
specialist Colt, where Yell said he had tion as business confidence returned.
been instrumental in turning the Yell, which is fighting to hold its own
business around to becoming cash- against rivals like Google online,
generative, debt-free and profitable. reported an 11 percent drop in sales
Heavily indebted Yell said in May for the quarter to the end of June.
 16 News
High-end homes drop in price
▲
PROPERTY
BY MARION DAKERS
THE COUNTRY’S most expensive
homes have shed 1.5 per cent of their
value in the last 12 months, suggesting
demand remains low even as supply
starts to tail off, according to research
out yesterday.
The dip has likely been caused by
high net worth individuals deciding
not to move to the UK, while others are
leaving the country, said Prime
Location, the property website that
commissioned the research.
The top 25 per cent of houses lost an
average of £7,000 in the year to
Talk of Quorn
sell-off ignites
Premier stock
▲
CONSUMER
BY MARION DAKERS
SHARES in Premier Foods shot up
more than 10 per cent yesterday in
response to the news that it may sell
its Quorn brand to an unnamed suitor.
The FTSE 250-listed firm closed up
10.43 per cent yesterday at 17.9p. The
shares remain nearly 60 per cent short
of their 12-month high.
Premier confirmed on Sunday it
had received an approach for its meat-
free division, which includes Quorn
and Cauldron Foods. The company
would not reveal who the interested
party was, or what the asking price
would be. Analysts estimated the divi-
sion could sell for between £200m to
£250m yesterday.
Quorn represents a small slice of
Premier, with sales last year of £118m,
or 4.4 per cent of total turnover. The
company said in August it would pay
off £100m of debt per year, in a fresh
attempt to cut its £1.4bn debt pile.
“A disposal such as Quorn would be
an encouraging step, however there
will be no silver bullet and debt will
remain high, with the company still
” ”
locked into expensive swap agree-
ments,” warned Warren Ackerman of
Evolution Securities.
Rockefeller snaps up 75pc of Europa
Capital to extend its reach in Europe
▲
PROPERTY
BY MARION DAKERS
THE ROCKEFELLER Group has bought a
75 per cent stake in Europa Capital, as
the American property investor
branches out into Europe.
Rockefeller, one of the oldest real
estate groups in the US, paid an
undisclosed amount for the stake in
the London-based Europa.
“The alliance with Europa is a sig-
nificant step in the realisation of a
[Rockefeller] global real estate invest-
September, with the average price for a
prime home now just over £450,000.
This is the biggest fall since January
2009, when Prime Location started
tracking prices.
Seven of the 11 regions covered by
the research saw a fall in adjusted aver-
age value, while the other four saw a
rise.
Homes in London suffered the most
dramatic fall, falling 2.4 per cent in the
last month alone. The top 25 per cent
of homes now cost an average of £1.1m.
Welsh homes fell the most in the year,
down 5.8 per cent on average to
£334,953.
Scotland has proved the most
Institutional shareholders such as
Paulson & Co, Warburg Pincus and
Franklin Templeton are thought to
have increased pressure on the compa-
ny to speed up its plans to unload debt.
Chief executive Robert Schofield
launched a £400m debt restructuring
and cash call in 2009 to avoid breach-
ing banking covenants.
Several analysts raised concerns
that the company risks selling its cash-
generating brands for scant return.
“Quorn is the one of the few areas of
the company that has long-term inter-
national growth potential. This means
the big fast-moving consumer goods
players will be taking notice, but at the
same time it is one of the company’s
crown jewels,” said Shore Capital ana-
lyst Darren Shirley.
ANALYSIS l Premier Foods
22 p 17.94
4 Oct
20
18
16
5 Jul 23 Jul 12 Aug 2 Sep
ment management platform,” said
Kevin R Hackett, president and chief
executive of Rockefeller, which is
owned by Japan’s Mitsubishi Estate.
Europa said in a statement yester-
day that its five principal partners
will retain a significant minority
stake in the company, and that day-to-
day operations will be unchanged.
The principals said in a statement:
“This is a dynamic time for the real
estate market and property fund
management business and we see sig-
nificant scope for developing our
resilient, with prime properties
increasing 2.2 per cent in the year.
Prime Location’s research director
Andrew Smith said: “This fall in prices
at the top end of the market is particu-
larly interesting because the availabili-
ty of prime stock has also decreased
slightly.
“With the rise in the value of ster-
ling, there could be fewer high net
worth individuals looking to buy prop-
erty in the UK from abroad. In addi-
tion, the higher income tax level and
general economic climate seems to be
prompting some wealthier homebuy-
ers to leave the UK and live in countries
with more favourable tax regimes.”
ANALYST VIEWS: SHOULD PREMIER INVESTORS BE CELEBRATING?
MARTIN DEBOO | INVESTEC
“
With the valuation at rock bottom, the share price is on a hair-trigger. We think today's
bounce is directionally appropriate – the disposal of Quorn on decent terms would be a good deal for
shareholders.
GRAHAM JONES |
PANMURE GORDON
“ “
The rise in share price shows
that any deleveraging is good news.
While a sale would help cut debt, it
won’t be a transformational deal if it
goes ahead. It demonstrates how strict
1 Oct
Premier is about reducing debt.
business from its established base
through the introduction of a strate-
gic investor with an international
reach.”
Europa manages funds on behalf of
70 investors, and has more than €6bn
(£5.2bn) invested across 17 countries.
It is understood that the firm did not
solicit approaches, though it was hop-
ing to expand its investment range.
Rockefeller, which was advised by
Credit Suisse during the deal, is syn-
onymous with its first project, the
Rockefeller Center in New York.
CITYA.M. 5 OCTOBER 2010
London & Stamford sells
Aintree shopping centre
it intends to use the proceeds to pay
▲
PROPERTY
back loans linked to its own purchase
PROPERTY investor London & of the retail park, with the balance
Stamford completed the £101m sale put aside for future investment.
of its shopping centre near Aintree KBC Peel Hunt and Credit Suisse
racecourse yesterday. acted as joint brokers, sponsors and
The firm, which last week listed on financial advisers.
the London Stock Exchange and Shares closed down 1.9 per cent to
turned into a more tax-efficient real 119.5p yesterday. The shares have
estate investment trust (REIT), sold gained 4.6 per cent since joining the
the Liverpool mall to the Crown main market last Friday. As well as
Estate, the royal family’s land portfo- allowing the firm to convert to a REIT,
lio. the upgrade gives the firm access to a
The Guernsey-based company said bigger pool of investors.
Premier Foods boss
Robert Schofield is
fielding a bid for
its Quorn business,
that analysts said
could be worth
£250m
By Marion Dakers
”
JULIAN HARDWICK |
ROYAL BANK OF SCOTLAND
Quorn is not core to overall strat-
egy and selling something in Meat Free is
more palatable than the ambient grocery
business. The news underscores the
greater urgency bosses are bringing to the
issue of asset sales to reduce debt.
NEWS | IN BRIEF
Focus Solutions contract win Construction disputes jump
Focus Solutions Group, a provider of Construction related disputes climbed by
multi-channel distribution software to more than a third during the credit
the global financial services industry, yes- crunch, according to new figures pub-
terday announced it has won a contract lished yesterday, as the downturn took
with a major global bank, which it its toll on one of the industries hardest
declined to name. It said the contract is hit by the financial crisis. According to
worth approximately £10m, comprising research by legal information business,
£6.5m in licence fees, approximately Sweet & Maxwell, the number of con-
£2.5m in implementation services and a struction disputes that went to arbitra-
further £1m per annum in support and tion rose by 31 per cent during 2009.
maintenance. In addition, Focus Solutions Last year, there were 1,018 construction
says the contract will be worth up to an related applications made to dispute
additional £10m over the following five resolvers, marking a sharp rise from
years from annual support and mainte- 2007 when 779 applications were made.
nance fees, transaction fees, and addi- A housing slump and dwindling demand
tional implementation services. The firm for commercial space were some of the
said it will provide the bank with support factors leading to the rise in disputes as
for over 1,000 advisers, as well as pro- developers came under pressure to
viding a channel for 5m account holders. reduce costs, according to the figures.
CITYA.M. 5 OCTOBER 2010
Harbinger eyes Inmarsat sale
▲
TECHNOLOGY
BY STEVE DINNEEN
SHARES in satellite firm Inmarsat
shares dropped yesterday after US
hedge fund Harbinger Capital said it
was planning to sell a 10 per cent
stake in the firm worth close to
£300m.
Harbinger said it is considering a
placing of the shares, which would
reduce its stake in Inmarsat to about
20 per cent.
The market reacted badly, with the
shares falling in value by almost four
per cent, before recovering to close
two per cent down at 655p.
AIA IPO eyes
up to $14.9bn
fundraising
▲
INSURANCE
BY HARRY BANKS
AMERICAN International Group (AIG)
plans to raise up to $14.9bn (£9.4bn)
through an IPO of its Asian life insur-
ance unit AIA Group, according to doc-
uments relating to the matter
yesterday.
The Hong Kong-based company
plans to raise between $13.9bn and
$14.9bn by selling 5.86bn shares at
HK$18.38 to HK$19.68 each, the docu-
ment said. Including an overallotment
option, the IPO could raise up to
$17.1bn.
The document also revealed a list of
cornerstone investors in the offering,
including a $1bn commitment from
the Kuwait Investment Authority and
firms controlled by Hong Kong tycoon
Cheng Yu-tung.
Citigroup, Deutsche Bank, Goldman
Sachs and Morgan Stanley are joint
global coordinators for the IPO.
Though the total amount has yet to be
determined, the standard Hong Kong
IPO fee would have the banks involved
splitting roughly $500m in fees.
In addition to a boon to the banks
involved, it would also allow AIG to pay
back the US government for its rescue
in late 2008.
BHP Billiton takeover of Potash could
cost Canada over £1bn in lost taxes
▲
M&A
BY MARION DAKERS
BHP BILLITON’S $39bn (£24.6bn) hos-
tile bid for Potash cleared a hurdle yes-
terday, as an independent report
found that BHP is a more suitable
owner than potential rival Sinochem.
The report, commissioned by the
Canadian province of Saskatchewan,
said that BHP’s takeover could cost
the area at least C$2bn (£1.23bn) in
lost taxes, though the government
could change its royalty structure to
Harbinger said it wants the
money to invest in a next-genera-
tion telecoms network it is backing
in the US. Inmarsat declined to com-
ment. Harbinger, which also backs
LightSquared, said it was reviewing
its options but that no decision had
yet been taken.
Meanwhile Inmarsat, whose satel-
lites provide voice, data and broad-
band services to shipping and aircraft
announced it will speed up a plan to
increase the amount of spectrum
available to its strategic partner
LightSquared. This will allow the US
broadband and satellite network
provider to start offering 4G services.
In total, six cornerstone investors
had agreed to commit $1.9bn to the
IPO, said the document which was pro-
vided by a person directly involved in
the deal, who was not authorised to be
identified because the information is
not public.
AIG plans to sell 48.6 per cent of.
Malaysian conglomerate Guoco Group
which has agreed to invest $370m,
while Lorita Investment and
Kumpulan Wang Persaraan signed up
to invest $200m each, the document
said. Cheng’s New World and Chow Tai
Fook committed $50m each.
AIA’s overall value after listing would
be on par with what British insurer
Prudential last offered for AIA in its
failed takeover bid earlier this year.
AIA’s IPO was set to start today, with
shares expected to start trading on 29
October. The issue was likely to be
among the world’s largest ever and fol-
lows the record-breaking July deal
from the Agricultural Bank of China.
AIA would be the second largest IPO in
the world this year.
“Considering that some of the
Chinese insurers are trading more
than two times embedded value, I
think AIA can get overall value north of
$30bn,” said Sally Yim, vice president at
Moody’s Investors Service.
mitigate the loss.
Potash shares jumped more than
two per cent in Toronto yesterday.
The report also found that BHP’s
interests are more closely aligned
with Saskatchewan’s than the inter-
ests of any Chinese group, most likely
to be led by Sinochem, that might
mount a rival bid. China is a major
consumer of the fertiliser.
“A producer that is unhinged from
market discipline could potentially
wreak havoc on Saskatchewan’s
finances,” the report said.
LightSquared said it intends to
accelerate the implementation of an
agreement with Inmarsat to the
fourth quarter of this year.
ANALYSIS l Inmarsat
760 p
740 657.50
4 Oct
720
700
680
660
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
AIR PARTNER DIVIDEND REGAINS ALTITUDE
PRIVATE aircraft charter operater Air Partner said yesterday it would restart dividend
payments this December, after cancelling pay-outs in March due to difficult market con-
ditions. The charter broker to governments and wealthy individuals said it hopes to con-
tinue upping its dividends from now on. Shares in the business rose three per cent to
310p yesterday.
After digesting the report, the
Saskatchewan government plans to
present its position on the takeover
later this month to Ottawa, which
could veto the takeover after a review
that will look at whether the deal is of
net benefit to Canada.
The report’s authors cautioned
against Saskatchewan formally oppos-
ing the takeover bid, warning that
opposition would be seen as under-
mining shareholder rights, depress-
ing Potash’s share price and possibly
hurting junior potash companies.
Sara Lee rebuffs potential
$12bn KKR buyout offer
▲
CONSUMER
SARA LEE shares surged seven per
cent yesterday after The New York
Post reported the foodmaker received
an unsolicited offer from private
equity firm KKR Co and could arouse
the interest of Anglo-Dutch conglom-
erate Unilever NV.
KKR approached the maker of Sara
Lee bread and Jimmy Dean sausages
about six weeks ago in what could
have been a $12bn deal, the newspa-
per reported, citing a person familiar
LLOYD PENGILLY
AND ADAM BRETT
JP MORGAN
JP MORGAN has taken the lion’s
share of the advisory work in BHP
Billiton’s mammoth $39bn (£24.6bn)
bid, and has drafted in some of its
most illustrious names to make sure it
keeps its place at the front of the
pack. As lead financial adviser, JP
Morgan is coordinating its efforts for
BHP Billiton between London and the
US.
Leading the team on this side of the
pond is one of the firm’s most senior
bankers, Lloyd Pengilly, who was orig-
News 17
with the matter. Sara Lee’s board
rebuffed the offer, the report said.
Sara Lee also held takeover talks
with private equity firm Apollo
Global Management in recent
months, but failed to reach a deal,
according to another report by
Bloomberg.
Bloomberg also said Sara Lee
undertook a strategic review in
August and chose not to explore a
sale of the company.
Sara Lee shares closed up 97 cents,
or 7.2 per cent, at $14.40.
September
traffic rises
for Ryanair
▲
AVIATION
BUDGET airline Ryanair carried more
passengers in September compared
with the same period last year.
According to the Dublin-based air-
line led by chief executive Michael
O’Leary, it carried 6.84m people last
month, marking a sharp 12 per cent
increase from September last year
when it flew 6.12m people.
However, Ryanair said that it has
flown 71.6m passengers during the
year to 10 September. This number
includes the 1.45m passengers who
were booked to fly but didn’t during
the six-day closure of European air-
space as a result of the volcanic erup-
tions in Iceland.
The airline said in July that the
Icelandic ash cloud had caused it to
scrap almost 10,000 flights at a cost of
€50m (£43.2m).
The impact caused the airline’s
profits to fall by almost 25 per cent
during the first quarter of the year
causing them to come in at €93.7m
(£80m).
Meanwhile, Ryanair’s flights were
almost at full capacity last month
after the airline filled 86 per cent of
its planes. The number, known as
load factor, rose by one per cent com-
pared to the same period last year
when Ryanair filled 85 per cent of its
planes.
During the last 12 months, on aver-
age, Ryanair’s load factor reached 82
per cent.
inally made one of the executive com-
mittee members when JP Morgan
struck its joint venture with Cazenove
back in 2004.
Pengilly is joined by Adam Brett,
the head of the EMEA metals and
mining group, who is a particularly
busy bee at present. He also recently
advised Vedanta on its proposal to
acquire a majority stake in Cairn
India for up to $9.6bn.
Brett previously advised on the cre-
ation of the JP Morgan Cazenove
joint venture before joining the UK
firm in 2005. He also sits on the FSA’s
Listings Authority Advisory
Committee.
BHP has also hired five further
banking advisers – Toronto Dominion
Securities, Banco Santander, Barclays
Capital, BNP Paribas and Royal Bank
of Scotland.
 18 News
US data shows housing uptick Mayer Brown transfers
whether the Federal Reserve would
▲
WORLD ECONOMY
embark on a new round of monetary
BY HARRY BANKS policy easing next month, as widely
PENDING sales of previously owned anticipated by financial markets.
US homes rose to a four-month high “Sales have stabilised at very, very
in August, implying the housing low levels after the expiration of the
market was regaining some stability federal tax credits. At these low lev-
after recent steep declines following els, you could see some good percent-
the end of a home-buyer tax credit. age increases in sales, but it doesn’t
Another report yesterday showed show any sustainable uptrend in
new orders received by domestic fac- housing conditions,” said Ryan
tories fell 0.5 per cent in August as Wang, an economist at HSBC
demand for transportation equip- Securities in New York.
ment fell sharply. Analysts had fore- The National Association of
cast a drop of 0.4 per cent in August. Realtors said its Pending Home Sales
However, excluding the transporta- Index, based on contracts signed in
tion segment, factory orders rose 0.9 August, increased 4.3 per cent to 82.3
per cent. from July. Economists polled by
The data offered few fresh clues on Reuters forecast the index, which
NatGrid hires
finance boss
from Cadbury
▲
ENERGY
regulators over the expenses it paid to
BY EMMA SADOWSKI staff in the country.
NATIONAL GRID said yesterday it had He also faces the challenge of
hired Andrew Bonfield, who was improving investor relations after the
Cadbury’s chief financial officer dur- company’s surprise £3.2bn rights
ing its takeover by Kraft, as new issue, launched in the spring.
finance director at its energy trans- Bonfield, who began his career as
mission business. an accountant with PwC, resigned
Bonfield will take over the post from Cadbury’s board in February,
from current finance director Steve after only one year in the top post. He
Lucas at the start of next month as played a major part in trying to fight
Lucas prepares to retire. off Kraft’s £11.4bn hostile takeover
Lucas will leave National Grid at earlier this year.
the end of the year after serving a Prior to joining the confectioner,
decade as the group’s finance direc- Bonfield was financial officer at
tor. Although his pay-off is not Bristol-Meyers Squibb for five years in
known, Lucas received £1.3m in New Jersey and previously held the
salary and bonus last year. top finance role at SmithKline
Bonfield will walk into a raft of Beecham, which merged in 2000 with
issues at National Grid as the energy Glaxo Wellcome to form
giant faces growing pressure from US GlaxoSmithKline.
He was tipped earlier this year as a
Current National Grid possible candidate to take over the
finance director Steve top job at Marks & Spencer.
National Grid chief executive Steve
Lucas will leave his Holliday said: “I know that with his
post at the end of vast experience, he will play a pivotal
December. role in helping us meet the chal-
lenges and opportunities ahead.”
CITY MOVES | WHO’S SWITCHING JOBS Edited by Marion Dakers
Yell Group
The company behind the Yellow Pages has
appointed Tony Bates as chief financial officer,
effective from 22 November. He will also take
up the role of executive director from 1
November. Bates, 54, served as chief operating
officer at Colt from 2002 until the end of July.
Before this he was with record label EMI. He
took a BSc in management sciences at
Manchester University in 1977, and qualified as
an accountant with Arthur Andersen in 1980.
Cornhill Capital non-executive chairman. Little is the
The energy-focused debt and equity former president of Canaccord UK and
provider has appointed Nigel Little as Europe, and has over 30 years’ experi-
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
leads existing home sales by a month
or two, rising three per cent in
August from July. Compared to
August last year, pending home sales
were down 20.1 per cent.
The group’s chief economist,
Lawrence Yun, said the latest data are
consistent with a gradual improve-
ment in home sales in upcoming
months.
“Attractive affordability conditions
from very low mortgage interest
rates appear to be bringing buyers
back to the market,” he said in a
statement.
“However, the pace of a home sales
recovery still depends more on job
creation and an accompanying rise
in consumer confidence.”
BEST OF THE BROKERS
ANALYSIS l Ahold
€
9.64
4 Oct
10.3
10.1
9.9
9.7
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
AHOLD
RBS has lowered its target price, but still
rates the food retailer a “buy” with a target
of €11.80. The broker has cut earnings per
share forecasts for 2010 to 2012 by four to
six per cent, chiefly due to the recent
strength of the euro against the dollar. It
believes the departure of chief executive
John Rishton will make little difference.
Warsaw stock exchange to launch IPO
▲
EU ECONOMY
THE Warsaw stock exchange
announced yesterday its plan to list
on its own market offering a 64 per
cent stake to private investors by the
end of the year, in an offer valued at
up to 1.3bn zlotys (£284.2m).
The initial public offering (IPO) will
target Polish investors and selected
foreign institutional players.
Poland aborted several previous
ence in the securities industry. He was
head of sales, trading and research at
Nomura and has also spent time at
HSBC and Morgan Stanley. He is a free-
man of the City of London and a mem-
ber of the Worshipful Company of
International Bankers.
Lo-Q
The provider of virtual queuing systems
has hired a new chief executive, effec-
tive from yesterday. Tom Burnet joins
Lo-Q from Serco, where he was manag-
ing director of the defence operations
division. Before this, Burnet was man-
aging director of QinetiQ’s technical
consultation team. He has also served
secretaries to TMF Group
▲
LEGAL
INTERNATIONAL law firm Mayer
Brown has sold its UK corporate secre-
tarial arm to outsourcing group, TMF.
The move will see five secretaries,
who work for the law firm’s corpo-
rate support unit in the City, transfer
over to TMF at the end of the month.
At Mayer Brown, the secretaries
supported the firm’s corporate
department by drafting documents,
including court papers, and compil-
ing information from Companies
House.
The deal is part of a string of acqui-
ANALYSIS l Alexon
19.5
p
18.00
4 Oct
18.5
17.5
16.5
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
ALEXON
Brewin Dolphin rates the clothing retailer
an “add” with a 12-month target price of
21p. The broker has cut its earnings per
share forecasts by 25 per cent for 2011 due
to what it sees as delays in improvement. It
maintains that the firm shows promise but
believes investors will be wary of adding to
retail exposure in the run-up to Christmas.
To appear in Best of the Brokers email your research to notes@cityam.com
attempts to privatise the stock
exchange, most recently abandoning
plans to sell it to one of the world’s
leading operators after the final bid-
der, Deutsche Boerse walked away
from final talks a year ago.
The Warsaw stock exchange lists
383 companies on its main exchange
with a combined market capitalisa-
tion of 727bn zlotys. In the first-half
of this year, it reported revenue of
111.5m zlotys.
in association with
as a director at Cedalion, a Microsoft
technology consultancy.
Polar Capital
The investment firm has hired three
fund managers to complete its new
global emerging markets team. William
Calvert joins from AXA Framlington,
where he was head of the emerging
markets desk. Ming Kemp also joins
from AXA Framlington, where she
spent five years as an Asian equity spe-
cialist. Since moving to London from
China in 1990, Kemp has also worked
for American Express Asset
Management and Sarasin Investment
Management. Neil Denman also worked
CITYA.M. 5 OCTOBER 2010
sitions for TMF within the last four
years, after it acquired secretarial
services from magic circle law firm
Clifford Chance late last year. TMF
also struck a similar deal with
accounting firm Ernst & Young in
2006.
Mayer Brown will continue to use
TMF for back-up support on corporate
deals.
Peter Dickinson, who heads up
Mayer Brown’s City corporate prac-
tice, said: “The sale of our UK compa-
ny secretarial business to TMF forms
part of our ongoing strategy of focus-
ing on our key strengths.”
ANALYSIS l Petrofac
1,450 p
1,390.00
4 Oct
1,350
1,250
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
PETROFAC
Arden Partners has downgraded the oil
group to “neutral” from “add” with a target
price of £13.67. While the broker views last
week’s interim results as strong, it sees
better value elsewhere in the sector. It has
raised its earnings per share by 5 cents to
$1.20 in the current financial year, on the
back of $4.17bn sales.
“The public offer is an important
step towards realising our main goal
of becoming Central and Eastern
Europe’s financial centre and one of
Europe’s leading markets,” chief exec-
utive Ludwik Sobolewski said in a
statement. The IPO will target Polish
investors and selected foreign institu-
tional players, the bourse said.
Citigroup, Goldman Sachs, JP Morgan
and UBS will serve as the offer’s glob-
al coordinators.
at AXA Framlington as a portfolio man-
ager, and has also spent time at Hexam
Capital Partners and Baring Asset
Management.
Baring Asset Management
The investment firm has hired Thanasis
Petronikolos as a director in the fixed
income and currency team, with
responsibility for the firm’s exposure to
emerging market debt and currencies.
Petronikolos has over 15 years of expe-
rience in emerging market investment,
having spent time at RAB Capital,
Avebury and Rothschild. He will report
to Alan Wilde, head of fixed income and
currency.
+44 (0)20 7557 7245
morganmckinley.com
 Investment | Contracts for Difference
19

US MARKETS
AWAIT THE Eurozone uncertainty
SIZE OF QE2
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
keeps bunds climbing
German bonds still

S
TOCK markets got plenty of attention last
month following strong rallies in the provide a safe haven,
major indices. But September also saw
impressive gains for precious metals and
the euro, although the latter was more a func-
says Donata Huggins
tion of dollar weakness. Although there are

plenty of good reasons to avoid the euro, the
single currency has surged against the dollar,
thanks to the growing expectation of further
QE at the November Fed meeting.
The markets are pricing in these shortened
odds and all financial instruments now include
some premium (or discount) accounting for
the chance of a flood of fresh dollars into the
system. Speculation has edged away from the
timing towards the size of QE2. Will it be a $1
trillion-plus shock and awe exercise, or a series
of smaller stimuli with no upper limit?
There is a counter-argument which says
that QE2 (especially as early as November) is
far from certain. To start with, Minneapolis
president Narayana Kocherlakota, Atlanta Fed
president Dennis Lockhart, the Philly Fed’s
Charles Plosser and Richard Fisher of the
Dallas Fed have recently all seemed less than
convinced. Yet none is currently a voting mem-
ber on the FOMC. Fed chairman Ben Bernanke
is known to support further intervention and
ultimately his view will prevail.
In late August, Bernanke said the FOMC
would be ready “to provide further monetary
accommodation...especially if the outlook were
to deteriorate significantly”. The S&P has ral-
lied over 9 per cent since then, and it is this
statement which does much to explain how
equities manage to rally in the face of disap-
pointing economic data. This Friday sees the
release of the unemployment rate and non-
farm payrolls, the last to be published ahead of
the FOMC’s November meeting. It is a crucial
piece of data since a bad number will convince
investors that Bernanke has the excuse he
needs to launch QE2.
G
ERMAN bunds made gains across
the curve yesterday as expectations
of further US quantitative easing
(QE) increased and the Eurozone
producer price index (PPI) indicated a lack
of inflationary pressure in the pipeline.
Over the last few weeks the German bund
price has gradually travelled upwards
reaching a value of 13,182.5 yesterday at
7:45pm (see chart). But can the Eurozone’s
engine continue to provide low yields and
rising prices when Ireland and Greece see
their yields rising?
Harvinder Sian, a rates strategist at RBS,
says yes and that there is plenty of poten-
tial for a rally higher. In fact, for as long as
the outlook for the Eurozone periphery is
uncertain and QE is on the cards for the
US and the UK, the German bund will act
as a safe haven.
The bund has matched the US and UK
bonds’ falling yields, yet manages to boast
the lowest yield because its economic out-
look seems surer. This could be exacerbat-
ed on Friday if the US’s non-farm payroll
data is negative.
RBS’s Sian says that unless the US The Eurozone is
Federal Reserve decides to call off QE or troubled, but not
the Chinese suddenly start selling US over Germany
bonds we are unlikely to see a drop in the Picture:
bund price because the market has priced REUTERS
in the current yield expectations. As these
events are unlikely, traders will find going
long on the bund ever more appealing. Traders considering positions on the ANALYSIS l Weekly performance of the
But be warned, any news of uncertainty other German bonds such as the bobl, German bund price in September 2010
in the troubled parts of the Eurozone will buxl and schartz should relax in the 13,250
13180.7
provide lots of volatility over the next knowledge that -- if only trading for the 13,200 4 Oct
three months. Traders should place their quarter -- there is little difference between
Value

13,150
stop losses low in order not to get stopped them. Traders should probably still opt for
out. Traders can see how this is happening the bund because David Jones of IG 13,100

Source: IG Markets
already from how the bund fell to 12,983.1 Markets says traders benefit from bonds 13,050
on 13 September 2010, but has climbed carrying high volumes since they provide 13,000
back up to today’s highs. This suggests greater liquidity and tighter spreads. 12,950
that placing a stop loss as low as 50 or 100 CFD traders should be bullish on the
12,900 Bund (Dec-10) MA20
points below the bund’s current price bund for the quarter, but expect a bumpy
while, a little risky, could be wise. ride. Sep 06 13 20 27 Oct 11

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 Who next?
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European debt crisis, you should consider
forex trading with IG Markets. We offer
exceptional access to the largest and most
liquid financial market in the world.
Take a position today with the UK’s
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*Largest single provider of CFD accounts in the UK, Investment Trends report 2009.
CITYA.M. 5 OCTOBER 2010 Investment | Contracts for Difference 21

Battered Euro
stock markets
offer investors
minimal upside
Any optimism ahead while the Cac is stuck trading between
3,400 and 3,800.
of earnings season is With its bias towards technology
stocks, the Dax behaves much like the
already priced in, European Nasdaq, says ETX Capital’s
Manoj Ladwa. CFD traders should be
writes Jessica Mead looking to make the most of the range
trading while it holds.
DOWNSIDE BREAK

E
UROZONE equities have begun the
fourth quarter firmly on the back
foot with markets yesterday tum-
bling for the sixth consecutive trad-
ing session – the longest run of losses
since January 2009. Fears that the US will
plunge into a double-dip recession have
outweighed more positive European eco-
nomic data and upbeat expectations for
the third quarter earnings season.
Consequently, the markets are ignoring
fresh upbeat European economic indica-
tors and remain decidedly bearish about
the prospects for Eurozone equity indices
heading into the final three months of
2010.
This is perhaps unsurprising, given the
renewed concerns about the banking sec-
tor in the wake of Anglo Irish Bank and
the surging yields on peripheral
Eurozone sovereign debt. Contracts for
difference (CFD) traders may well be
tempted to take advantage of this prevail-
ing negative sentiment and invest in
European stock indices.
However, investors should remember
that while the bloc only has one curren-
cy, it has 16 different stock markets that
reflect the diversity of performance and
economic strength across the region.
Trading the indices will protect you
from the risks of investing in a single
stock but traders would be well advised
to pick their equity markets carefully.
After all, the German Dax 30 is going to
be rather different to the Greek AEX and
the Irish ISEQ.
The most frequently traded Eurozone
single country stock markets are the
blue-chip Dax 30 and the French Cac 40,
which have both been stuck in their
respective trading ranges since the start
of the summer. The more volatile Dax is
fluctuating between 5,800 and 6,300
Although the Dax is likely to outperform
the French Cac thanks to the relative
strong position of the German economy,
a bullish position on the German blue-
chip may not be such a good idea. Ladwa
warns that the third quarter earnings
season, which starts in earnest on 18
October, could provide the catalyst for a
break to the downside in the Dax, given
that the market has already factored in a
lot of upside and the index is currently
trading towards the top of its range.
The other big Eurozone stock market is
the Spanish Ibex 35. Despite the dismal No blue skies for
economic situation, Spanish equities European equity
managed to bounce in the third quarter. indices
But Charles Stanley’s Tony Shepard says Picture: REUTERS
that this could simply be a dead cat
bounce since the economy looks very vul-
nerable to slipping back into a recession 8E8CPJ@JcZ_Xe^\`eZflekipjjkfZb`e[\oj`eZ\)-8gi`c)'('
as recent retail sales and industrial pro-
duction have been weak.
Ladwa suggests that the more risk >\idXep1
averse CFD trader could hedge her bets
by doing a pairs trade. For example, if
@i\cXe[1 $(%0
you think that Germany is going to out- $)*%0
perform, then you could go long on the
Dax and short the Irish index at the same
time. Alternatively you could hedge your
short Ibex trade with a long position on
the Eurostoxx 50, which is a European-
wide market. =iXeZ\1 Jn`kq\icXe[1
However, the risk with this trade is
that events in the periphery aren’t quite $/%,. $.%-*
as bad as feared while things don’t turn
out so well for the German market,
warns Ladwa.
With an upbeat earnings season Gfikl^Xc1
already priced in and continued fears
about economic recovery in the periph- $'%'0 @kXcp1 >i\\Z\1
ery, CFD traders should make sure that
they place their stop losses carefully and JgX`e1 $('%, $(/%-
be ready to cut their losses should they $+%+.
materialise.

THE 10788 for Wall Street.

Insurance giant Aviva is also an interest-
ing play from several angles. With a divi-
TIPSTER dend yield of 6 per cent, not only does it
appeal to those looking for income, but with
NON-FARMS IS so many different areas of the business and
THE NUMBER TO in this frantic mergers and acquisitions
atmosphere, the insurer is a strong buy-out
WATCH CLOSELY and break-up target. ETX Capital is quoting
339.7p-400.2p for the CFD.
Falling oil prices, in addition to BP’s deci-
Meanwhile, elsewhere in the energy sec-
tor, Newcastle-based offshore driller
Wellstream was up on takeover talk after
revelations that one of its mysterious bid-
ders was US giant General Electric. Brokers
are divided, with some recommending a sell
but others hoping for a bidding war.
Wellstream is seen as an attractive asset
due to its focus on Brazil, predicted to be a
major location for future offshore drilling.
Spreadex offers a rolling spread of 784.50p-

N
ON-FARM payroll data this Friday
should provide the usual fireworks.
Marking the start of the final quarter
of 2010, this is a crucial figure.
Markets have been jumpy amid continuing
uncertainty about the global economy and
this monthly release has moved stocks around
dramatically in the past year. Its trajectory in
the coming months could determine whether
we get the usual year-end rally from the Dow
– or if we see shares sink heading into
Christmas. Capital CFDs quotes 10786-
sion to tap the debt market for €2bn have
done little to cheer the stock of late. Still, so
long as there’s no unexpected uplift in costs
from the Gulf of Mexico spill then any
downside could prove somewhat short-
lived. Dips could provide buying opportuni-
ties for those who missed the “chance of a
lifetime” to stock up a few months ago. The
company was given an A-rating for its debt
by S&P late last month, giving much-needed
solace to equity holders. Current IG
Markets price on BP is 431.05p-431.1p.
791.00p on the stock
Cruise operator Carnival impressed with
its recent third quarter results. Although its
current dividend is only at ten cents per
quarter, it’s possible that buyers could bene-
fit from a doubling of the yield in the near
future. The firm is also expanding confident-
ly, splashing out on five new ships, but off-
setting this capex is a healthy revenue
stream. IG Markets quotes a December con-
tract spread of 2494.2p-2507.2p.
Juliet Samuel Data could cause fireworks this week Picture: Micha Theiner/City A.M.
 22 Markets & Investment CITYA.M. 5 OCTOBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .286.70 +2.80 310.00 246.90 Cookson . . . . . . . . . . . . . . . . . . .546.00 –7.50 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .252.00 –8.20 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .281.60 +0.30 283.90 208.20
3i Infrastructure . . . . . . . . . . . . . 113.80 –0.20 115.00 97.00 Croda Intl . . . . . . . . . . . . . . . . .1467.00* –13.00 1529.00 654.00 Kazakhmys . . . . . . . . . . . . . . . .1423.00* –38.00 1634.00 955.00 Sainsbury(J) . . . . . . . . . . . . . . . .389.30 +0.30 397.00 307.60
A.B. Foods . . . . . . . . . . . . . . . .1036.00 +5.00 1096.00 790.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .519.00 –6.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .146.10* –1.10 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1445.00 –1.00 1459.00 1055.00
Aberdeen Asset Man . . . . . . . . . .163.00 +0.10 164.90 111.00 Dana Petroleum . . . . . . . . . . . .1798.00 — 1817.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .232.90 –1.00 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1164.00 –5.00 1191.00 864.00
Admiral. . . . . . . . . . . . . . . . . . .1671.00 –11.00 1695.00 1003.00 Davis Service . . . . . . . . . . . . . . .404.20* +0.30 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .134.70* +0.40 165.77 114.60 Scot. & Sthrn Energy. . . . . . . . . 1123.00 +3.00 1206.00 1006.00
Aegis . . . . . . . . . . . . . . . . . . . . .123.20 –1.90 137.30 103.10 Debenhams . . . . . . . . . . . . . . . . .66.90 +0.40 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .350.00* –2.50 372.30 157.30
Afren . . . . . . . . . . . . . . . . . . . . . 114.50 –1.00 117.30 76.25 Derwent London . . . . . . . . . . . .1549.00* –8.00 1572.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .560.00* –4.00 568.00 416.70 Scottish Mortgage. . . . . . . . . . . .640.00 –2.00 645.00 475.00
African Barr Gold . . . . . . . . . . . .605.00 +5.50 685.00 520.50 Dexion Absolute . . . . . . . . . . . . .139.00 –1.00 148.00 130.00 Land Securities . . . . . . . . . . . . . .653.00* +2.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .280.90* +0.70 389.90 244.00
Aggreko . . . . . . . . . . . . . . . . . .1547.00* +8.00 1639.00 664.50 Diageo . . . . . . . . . . . . . . . . . . .1092.00* –12.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .102.00* –1.70 105.70 69.05 Serco . . . . . . . . . . . . . . . . . . . . .597.00* –10.50 656.50 485.60
Alliance Trust . . . . . . . . . . . . . . .331.30 –0.90 352.70 292.80 Dimension Data . . . . . . . . . . . . . 119.60 –0.10 125.50 62.00 Lloyds Banking Gp . . . . . . . . . . . .73.33 –0.17 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1307.00 +1.00 1404.00 939.50
AMEC . . . . . . . . . . . . . . . . . . . . .998.50 –11.50 1024.00 724.50 Dixons Retail . . . . . . . . . . . . . . . .26.33 +0.13 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .128.10* –0.70 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .440.90 –0.50 456.00 348.00
Amlin . . . . . . . . . . . . . . . . . . . . .398.90* –1.90 437.60 350.80 Domino’s Pizza . . . . . . . . . . . . . .462.50 –2.50 484.70 278.20 London Stk Exchange . . . . . . . . .675.00 –9.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1405.00* –15.00 1532.00 999.00
Anglo American . . . . . . . . . . . .2538.00 –32.00 3015.50 1846.50 Drax . . . . . . . . . . . . . . . . . . . . . .382.70* –1.40 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1691.00 –25.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .579.50 –3.50 700.50 525.50
Antofagasta . . . . . . . . . . . . . . .1224.00* –24.00 1258.00 699.50 Dunelm . . . . . . . . . . . . . . . . . . . .392.90 +2.20 438.40 303.00 Man . . . . . . . . . . . . . . . . . . . . . .217.60 +1.40 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .154.00 –0.80 156.00 103.00
Aquarius Platinum . . . . . . . . . . .335.70* –2.80 490.00 211.50 Easyjet . . . . . . . . . . . . . . . . . . . .369.90 +1.60 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .390.20 –1.40 412.70 321.90 Smiths . . . . . . . . . . . . . . . . . . .1226.00 –16.00 1253.00 864.50
ARM Holdings . . . . . . . . . . . . . . .401.50* –3.50 419.50 134.40 Edinburgh Inv Tst . . . . . . . . . . . .421.70 — 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .296.20* –0.90 331.00 224.90 SOCO Intl . . . . . . . . . . . . . . . . . .441.50 +5.20 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . .342.80 +5.50 345.00 215.00 Electrocomponents . . . . . . . . . . .238.00 –6.00 251.00 142.90 Melrose . . . . . . . . . . . . . . . . . . .275.70* –3.50 280.00 160.00 Spectris . . . . . . . . . . . . . . . . . .1084.00 — 1117.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3212.00 –10.00 3389.50 2668.00 EnQuest . . . . . . . . . . . . . . . . . . . 117.00 –0.60 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .959.50* –3.00 1002.00 822.50
Atkins(Ws) . . . . . . . . . . . . . . . . .738.00 –10.00 801.00 532.50 Essar Energy . . . . . . . . . . . . . . .466.80 –0.30 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .465.20* +4.10 471.00 314.40 Spirax-Sarco Eng . . . . . . . . . . .1803.00 +1.00 1859.00 1026.00
Autonomy Corp . . . . . . . . . . . .1844.00 — 2012.00 1278.00 Eurasian Nat Res . . . . . . . . . . . .914.50* –7.50 1276.00 781.00 Micro Focus . . . . . . . . . . . . . . . .381.00 –3.00 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .141.60 –1.80 145.40 84.40
Aveva . . . . . . . . . . . . . . . . . . . .1461.00 –42.00 1504.00 856.50 Euromoney Inst Inv . . . . . . . . . . .605.00 –2.50 630.00 352.90 Millen & Copthorne . . . . . . . . . . .518.00* –2.00 547.00 321.40 Sports Direct Intl . . . . . . . . . . . . .143.50 +3.00 143.60 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .392.90* –1.60 474.00 290.20 Experian . . . . . . . . . . . . . . . . . . .676.00 +2.00 698.50 516.50 Misys . . . . . . . . . . . . . . . . . . . . .288.00 –0.40 295.80 192.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1156.00 –2.00 1190.00 616.00
Babcock International . . . . . . . . .570.00 –10.00 660.50 489.00 Ferrexpo . . . . . . . . . . . . . . . . . . .316.20 +2.90 396.20 138.00 Mitchells & Butlers . . . . . . . . . . .290.00 –2.90 343.90 228.30 St James’s Place . . . . . . . . . . . . .287.60 –4.40 298.00 203.40
BAE Systems . . . . . . . . . . . . . . .342.50 –0.60 389.90 288.10 FirstGroup . . . . . . . . . . . . . . . . .362.00 +5.00 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .191.30 –1.10 257.00 187.60 Stagecoach. . . . . . . . . . . . . . . . .182.20 +1.80 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .266.00 –0.60 304.80 228.60 Foreign & Col Inv Tst. . . . . . . . . .284.50 –0.70 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .516.50 –7.50 533.00 303.90 Standard Chartered . . . . . . . . . .1848.00* +13.00 1946.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . .299.80 +0.05 394.25 253.40 Fresnillo . . . . . . . . . . . . . . . . . .1266.00 –4.00 1290.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .319.70 –2.10 325.80 265.00 Standard Life . . . . . . . . . . . . . . .227.60* –2.10 237.00 170.00
Barratt Development . . . . . . . . . . .98.25 +1.05 178.75 89.10 G4S . . . . . . . . . . . . . . . . . . . . . .252.30* –1.20 285.70 217.70 Morrison Wm . . . . . . . . . . . . . . .296.50* +3.10 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . .1237.00 +13.00 1312.00 499.00
BBA Aviation . . . . . . . . . . . . . . .190.00* +0.10 220.00 145.90 Genesis Emerging Mkts Fd . . . . .514.50 +6.50 518.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .893.50 +1.50 907.50 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .147.00 –2.80 153.80 106.60
Bellway. . . . . . . . . . . . . . . . . . . .586.00 +12.50 842.50 510.00 GKN . . . . . . . . . . . . . . . . . . . . . .168.90 –0.50 174.30 100.40 National Express. . . . . . . . . . . . .239.60 +0.50 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .490.00 –1.40 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .838.50 +9.50 949.50 735.00 GlaxoSmithKline . . . . . . . . . . . .1249.00* –3.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .553.50 +12.50 607.65 474.80 Tate & Lyle . . . . . . . . . . . . . . . . .468.40 –0.90 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . . 1152.50 –17.50 1248.00 966.90 Great Portland Estates . . . . . . . .351.30 +0.60 356.50 236.60 Next . . . . . . . . . . . . . . . . . . . . .2231.00 +4.00 2360.00 1726.00
BHP Billiton . . . . . . . . . . . . . . .2026.50 –31.50 2346.00 1583.50 Greene King . . . . . . . . . . . . . . . .415.10 +1.10 484.00 372.50 Northumbrian Water . . . . . . . . . .334.00 +0.60 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .28.21 –0.42 46.34 24.29
BlackRock Mining . . . . . . . . . . . .637.00 –0.50 654.50 474.00 Halfords . . . . . . . . . . . . . . . . . . .448.00 +4.00 562.50 343.00 Ocado Grp . . . . . . . . . . . . . . . . .131.50 –2.70 169.00 129.20 Telecity . . . . . . . . . . . . . . . . . . . .498.00 –2.00 546.00 311.30
BlueBay . . . . . . . . . . . . . . . . . . .342.20 –2.40 393.00 251.00 Halma . . . . . . . . . . . . . . . . . . . . .318.60 –1.00 323.90 215.40 Old Mutual . . . . . . . . . . . . . . . . .137.30 –2.10 142.50 94.75 Templeton Emrg Mkts . . . . . . . . .634.00 +0.50 639.00 449.00
Bluecrest Allblue GBP . . . . . . . . .168.60 –0.40 170.00 147.00 Hammerson . . . . . . . . . . . . . . . .398.00* — 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .279.00 +1.00 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .430.35 +2.25 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .49.77 +1.31 50.50 37.50 Hargreaves Lansdown . . . . . . . .453.00 –2.60 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .967.50 –12.00 1069.00 751.50 Thomas Cook . . . . . . . . . . . . . . .173.00* –0.70 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .430.10 –10.40 658.20 296.00 Hays . . . . . . . . . . . . . . . . . . . . . . 116.30 +2.40 119.00 82.50 Pennon . . . . . . . . . . . . . . . . . . . .580.00* +0.50 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .840.00 +3.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1030.00 +1.00 1045.00 709.00 Henderson . . . . . . . . . . . . . . . . .125.30 –0.10 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .391.50 –1.70 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .216.80* +1.80 313.90 189.20
British Airways . . . . . . . . . . . . . .239.10 –3.80 255.80 172.40 Heritage Oil. . . . . . . . . . . . . . . . .300.00 +0.70 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1390.00* –2.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .404.00 +4.60 436.20 261.20
British Amer. Tob . . . . . . . . . . .2345.00 –15.50 2439.00 1832.00 Hikma Pharma . . . . . . . . . . . . . .694.00* +6.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . .1083.00* –16.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1296.00* –12.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .468.80 –0.80 470.60 338.50 Hiscox . . . . . . . . . . . . . . . . . . . .348.60 –2.00 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* –1.00 775.00 550.50 UK Commercial Prop. . . . . . . . . . .79.00 +1.10 84.90 69.30
British Land . . . . . . . . . . . . . . . .476.40 +2.70 515.00 416.00 Hochschild Mining . . . . . . . . . . .440.40 +2.10 457.50 220.00 Premier Farnell . . . . . . . . . . . . . .268.50* –0.50 273.30 140.60 Ultra Electronics . . . . . . . . . . . .1712.00 –6.00 1774.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .477.90 –3.30 518.00 340.00 Home Retail . . . . . . . . . . . . . . . .203.10 –0.70 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1689.00 –2.00 1703.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1824.00 –7.00 2024.00 1662.00
BSkyB . . . . . . . . . . . . . . . . . . . .706.00 +0.50 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .442.00 +12.00 502.00 422.00 Provident Financial . . . . . . . . . . .821.50 –3.00 986.00 795.00
BT . . . . . . . . . . . . . . . . . . . . . . .145.80 +3.00 151.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .651.60* –2.00 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .635.50 –11.50 665.00 475.70 United Utilities . . . . . . . . . . . . . .578.00 +3.00 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .752.50 –7.50 784.50 614.00 Hunting . . . . . . . . . . . . . . . . . . .640.00 –1.00 659.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .370.20* –1.90 382.70 231.70 Utd Business Media . . . . . . . . . .616.00* –2.50 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1026.00 –4.00 1065.00 492.10 ICAP . . . . . . . . . . . . . . . . . . . . . .432.20 –4.20 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .107.80 –0.20 179.10 103.50 Vedanta Resources . . . . . . . . . .2188.00 –21.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .56.80 +0.05 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .500.50* +2.90 532.00 291.00 Randgold Resources. . . . . . . . .6460.00 –65.00 6620.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1330.00 –8.00 1347.00 726.50
Cable & Wire Wwide . . . . . . . . . . .73.45 +0.35 94.80 60.05 Imagination Tech Gp . . . . . . . . . .380.00 +1.10 399.00 154.00 Reckitt Benckiser . . . . . . . . . . .3475.00 –13.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .159.00 +0.15 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .449.30 –7.80 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .766.50* –1.00 786.00 410.00 Reed Elsevier . . . . . . . . . . . . . . .528.50 –6.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1453.00 +3.00 1469.00 635.00
Caledonia Invs . . . . . . . . . . . . .1637.00 –1.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1899.00 –12.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .80.15* –0.85 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .789.00* +15.50 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .785.00* –3.00 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .308.40 –9.70 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1070.00* +14.00 1081.00 479.00 WH Smith . . . . . . . . . . . . . . . . . .445.80 –3.20 551.00 392.20
Capital & Counties . . . . . . . . . . .132.40 –1.30 137.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .412.20 –5.30 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .101.30 –0.20 140.20 91.15 Whitbread . . . . . . . . . . . . . . . . .1614.00 –10.00 1653.00 1141.00
Capital Shopping Centres . . . . . .376.40 –0.50 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .655.00* –13.50 831.00 526.00 Resolution . . . . . . . . . . . . . . . . .243.00* –1.30 264.80 220.10 William Hill . . . . . . . . . . . . . . . . .166.50 –2.40 217.80 160.50
Carillion . . . . . . . . . . . . . . . . . . .314.10* –1.40 361.90 269.30 Intercontl Hotels . . . . . . . . . . . . 1127.00* –1.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .306.20* +1.60 348.80 258.70 Witan Inv Tst . . . . . . . . . . . . . . . .465.90 +0.40 487.00 396.30
Carnival . . . . . . . . . . . . . . . . . .2497.00 –8.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .299.00 –1.80 307.20 233.50 Rightmove . . . . . . . . . . . . . . . . .740.00 –2.50 796.50 456.90
Catlin . . . . . . . . . . . . . . . . . . . . .340.00 –6.10 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1799.00 –19.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3697.00 –56.50 4104.00 2435.00 Wolseley . . . . . . . . . . . . . . . . . .1601.00 +19.00 1742.00 1155.00
Centamin Egypt . . . . . . . . . . . . .170.10 –3.40 194.40 92.00 Intl Personal Fin . . . . . . . . . . . . .269.10* –1.90 283.00 160.40 RIT Capital Partners . . . . . . . . . 1125.00 –3.00 1215.00 940.00 Wood Group (John). . . . . . . . . . .427.90 –10.00 443.50 279.60
Centrica . . . . . . . . . . . . . . . . . . .321.90* +0.90 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .394.10* +3.60 396.90 248.20 Rolls Royce . . . . . . . . . . . . . . . .591.00 –4.50 631.50 434.50 WPP . . . . . . . . . . . . . . . . . . . . . .696.50 –10.00 744.00 520.50
Charter Intl . . . . . . . . . . . . . . . . .700.50 +1.50 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .298.00 –6.20 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1766.00 +22.00 1768.00 1101.00 Xstrata . . . . . . . . . . . . . . . . . . .1209.00* –32.50 1344.50 815.00
Chemring . . . . . . . . . . . . . . . . .2971.00 –31.00 3711.00 2389.00 Investec . . . . . . . . . . . . . . . . . . .498.70 –8.30 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .47.56 –0.11 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Close Bros . . . . . . . . . . . . . . . . .744.00 –2.50 803.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .58.95 –0.40 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1916.50 –27.50 2068.50 1621.00
Cobham . . . . . . . . . . . . . . . . . . .226.10 –1.30 278.60 205.50 Jardine Lloyd Thompson. . . . . . .568.00* +3.50 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1865.50 –22.50 1997.50 1550.00 * Ex-Dividend † Suspended
COLT Group . . . . . . . . . . . . . . . . 118.10 –1.50 144.20 107.70 Johnson Matthey . . . . . . . . . . .1740.00 –26.00 1814.00 1302.00 RSA Insurance . . . . . . . . . . . . . .132.50* –0.10 142.00 114.10
Compass . . . . . . . . . . . . . . . . . .514.50 –6.50 574.50 375.00 JPMorgan Emerg Mkts . . . . . . . .594.00 — 599.00 443.00 SABMiller . . . . . . . . . . . . . . . . .1995.00 –15.00 2090.00 1450.00 www.interactivedata.com

FTSE ends do something different Wall St falls

lower in as investors
thin trade book gains
THELONDON From 8 Oct 2010 THENEW YORK
REPORT
Wall Street: REPORT
‘I once said greed is
good... but now it
seems it’s legal.’

B Money Never Sleeps 12A

U
RITAIN’S top share index closed S stocks fell in light trading yes-
lower in thin volumes yester- Gordon Gekko (Michael Douglas) terday as investors took profits
day, ahead of key macroeco- on recent gains, using middling
nomic data later in the week, economic data and worries
with BP hit after issuing a €2bn
(£1.72bn) bond to help pay for the
Tickets from £8.50 Book now barbican.org.uk about euro zone debt as a catalyst for
shedding long positions.
Gulf of Mexico oil spill. Commodities stocks led the declin-
The FTSE 100 ended down 0.7 per ers in reaction to the rising dollar.
cent at 5,555.97 points, after closing The greenback was stronger as
up 44.28 points, or 0.8 per cent, at of the Macondo well. Elsewhere on the downside in Scotland were both down 0.2 per investors shifted away from the euro,
5,592.90 on Friday. The oil major’s fall weighed on the London, miners took a hit from weak- cent. which fell about 0.8 per cent versus
Volumes were thin at just 63.8 per- integrated oil sector and dragged er metals prices, with three-months “The sector still feels slightly the dollar in late trading. The S&P
cent of the index’s 90-day average. rivals BG Group and Royal Dutch copper, nickel and zinc all off by ses- dogged by uncertainty,” said materials index led the decline,
“It has been an uneventful start to Shell down around 1.5 per cent. sion-end and weighing on base met- Goldstone. “We’ve been arguing for a falling 1.4 per cent.
the week, with a lack of major eco- Looking ahead on the macro front, als-heavy stocks Kazakhmys and little while that the market’s effec- Volume was very light, suggesting
nomic news giving investors nothing the US non-farm payrolls data on Xstrata. tively discounting the likely shape of traders were reluctant to build on
to latch on to,” said Will Hedden, sales Friday would be “likely to dominate Separately, Xstrata was also hit by a regulation and what that means for recent gains but also unwilling to
trader at IG Index, citing the release the week” said James Goldstone, UK report in the Australian Financial capital and return on capital.” give up on September’s nine per cent
of a Bank of England rate decision equity sales at Execution Noble, while Review that it may face competition rally. Combined daily volume on the
and US non-farm payrolls later this corporate newsflow is also expected in the race to acquire Sphere ANALYSIS l FTSE 5,555.97 NYSE, Amex, and Nasdaq was about
week as key. to pick up with Alcoa kicking off the Minerals. 4 Oct 6.84bn shares, below its 20-day mov-
5,600
The broader market remained third-quarter US earnings season on Heavyweight banking stocks ended ing average of 7.23bn.
firmly stuck in its recent three-week Thursday. in the red on regulatory concerns The Dow Jones industrial average
range, he added, and “there was defi- By the close in London, the Dow after trading higher for most of the 5,400
fell 78.41 points, or 0.72 per cent, at
nitely little appetite for ratcheting up Jones industrial average was trading day on finance minister George 10,751.27. The Standard & Poor’s 500
portfolio risk.” down 0.6 per cent, led by Microsoft on Osborne’s rejection of a think-tank Index lost 9.21 points, or 0.80 per
BP fell around two per cent, leading a Goldman Sachs downgraded the report the sector may need a second 5,000 cent, at 1,137.03. The Nasdaq
the energy sector lower, after issuing stock to “neutral”, citing competition bailout next year. Composite Index dropped 26.23
the bond, although the cost of the from tablet computers and after earli- By the close, HSBC was down 0.3 points, or 1.11 per cent, at 2,344.52.
deal was substantially less than it er trading flat on the release of per cent while state-backed Lloyds The rising US dollar pressured com-
would have been prior to the capping upbeat US housing data. Banking Group and Royal Bank of 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep modity-related stocks.
 Lifestyle
Get yourself ultimate fighting fit
Forget boxercise or
body-combat, MMA
is the real, raw deal,
finds Laura Williams
I
T’S 48 hours since it finished, and I can
just about pick up a pen now and my
legs no longer feel like jelly... The rea-
son for all this pain is a session of
MMA, or mixed martial arts, a combination
of Brazilian Jiu-Jitsu, Muay Thai kickboxing
and Greco-Roman wrestling. MMA is rapid-
ly growing in popularity, especially among
young men who have lost interest in box-
ing, and who feel that martial arts classes
have been diluted to fit onto gym timeta-
bles and that boxercise is no replacement
for kung fu.
So I was delighted when John “The
Hitman” Hathaway offered to give me a
taste of the sport. An undefeated 23-year-old
mixed martial arts fighter and former
rugby player, John fights in the Ultimate
Fighting Championship (UFC), the
American-based, mixed martial arts promo-
tions company that hosts some of the
world’s best fighters. If anybody knew
about MMA, it was him.
So off I toddled to the legendary
Shootfighters Gym in West London in my
Sweaty Betty Om pants, pretty sure I knew
what to expect – something like kickboxing
but a bit sexed up, surely? – and even more
sure I would suffer no after-effects. How
wrong I was.
Hathaway is a real athlete. The fitness
required to last a five minute round in the
Octagon (the eight-sided UFC cage where
fights take place) is phenomenal. John
spends four to five hours a day, six days a
week engaging in various different forms
of training, ranging from cardiovascular
training at altitude to sparring in the cage.
My time training, however, with John
was short and sweet in comparison – thank
God – and we spent it practising the basic
punch and kicks, and attempting to grind
and pound the grappling dummy, a heavy
stand-alone bag.
In the ring we did some easy kickboxing
combinations. I’ve done a little Muay Thai
before (and have been instructed in pad-
holding for my personal training qualifica-
tion), but with John it was more about
getting some power into the punches; I def-
initely got up more of a sweat in the time I
spent with him than anything I’ve done
before. Also, we did more repetitions – it
was “and again, and again...” rather than
the odd punch and then a nice little chat
about technique. I guess this is down to the
If you’re feeling down, stop doing and start being
Depression is hitting men earlier
than ever, but you can beat the
blues, writes Jeremy Hazlehurst
R
ESEARCH published by Relate last
week said that men are getting
their mid-life crisis earlier than ever,
and that men aged 35-44 are the
least happy people. The numbers are chill-
ing. Twenty-one per cent say they feel
lonely a lot of the time; 22 per cent want-
ed a better relationship with their family;
30 per cent believed shorter working
hours would help them get on better with
LEARNING TO 23
DRIVE A DB9
SEE TOMORROW’S
MOTORING PAGE
Laura gets to grips
with The Hitman.
Picture:
Micha Theiner
/City A.M.
way he trains. I’d never done the stuff on WHERE TO TRY MMA HEALTH BENEFITS OF MIXED MARTIAL ARTS
the floor with the grappling dummy which
was basically holding the dummy with one
hand and then striking three punches to
the other side and then one to the head. It Visit a specialist martial arts gym to get the l Regular practice of any martial art will sharpen your mental state and
was exhausting. very best fad-free advice and teaching. help to improve your concentration.
I had lots of questions and John was able
l London Shootfighters Gym l You’ll become a lean, mean fighting machine pretty quick – useful for
to answer them all – we talked plyometrics,
core and agility. The finale was five min- At 35,000 sq foot it’s the largest mixed martial defending yourself after a night out on the tiles.
utes on the VersaClimber, a climbing/step- arts training gym in the world; l MMA and the training that goes with it does wonders for your cardio-
ping machine used by the fighters to londonshootfighters.com. vascular health, taking you a few steps further away from nasties such as
improve cardiovascular fitness. As a 20-
minute 5K runner, I thought I’d have this l Urban Kings heart disease and diabetes.
covered, but no such luck. I staggered off, New, state-of-the-art gym in Kings Cross for l As far as your muscles go, the list is endless as to what mixed martial
barely able to feel my legs with a pathetic mixed martial arts, conditioning and fitness; arts can do for you: you’ll improve power, muscle tone and strength, and
563 feet covered. John covers more than
1,000ft in five minutes. I won’t give up the urbankingsgym.com. you’ll be amazed at the improvement you see in your flexibility too.
day job just yet. l Diesel Gyms l An excellent outlet for stress and pent-up aggression, mixed martial arts
The UFC120 event takes place at the O2 on Sat Chain of East End-based gyms are a must for any City worker who’s ever needed a release after a hard day
16 October, while the Fan Expo is at Earls Court on
the same weekend.
londonmuaythai.co.uk at the screen.
laura@laurawilliamsonline.co.uk.
relatives; 22 per cent said they had suf-
fered depression because of a bad relation-
things that give life value.”
In the City this is exacerbated by long
Technology can also enable short-ter-
mist thrill-seeking behaviour – dating
ship; 40 per cent had been cheated on by a
partner; and 28 per cent had quit a
hours and the imperative to be con-
tactable at all hours of the day. The reces-
sites have made affairs far easier. Which
leads us to point three: concentrate on the
job after falling out with a colleague. sion just made things worse. For women, long-term, and avoid short-term fixes.
Dr Michael Sinclair of City there is the added pressure of having a Booze, drugs or sex might make you feel
Psychology, who is based in family. Dr Sinclair says he often has better right now, but can become bigger
Liverpool Street, agrees women in floods of tears in his office. problems than the one they were meant
that the mid-life crisis – So if you are feeling depressed, how do to fix. Take a step back and recognise
feeling being part of a you cope? Firstly, says Sinclair, remember when your behaviour is self-destructive.
machine and feeling that it is not just you that feels this way – And fourthly, prioritise. There’ll never
there is no meaning or and there are people out there who can be a moment when everything is done
reason to life – is striking help. and you can relax, so put some time in the
ever younger. “People are Secondly, get off the internet. If you are diary to spend doing something you
under tremendous pres- emailing friends rather than speaking to enjoy, whether it’s just reading a book,
sure at an early age,” he says. them, and socialising on social networking watching a film, doing yoga or going to
“Society has these expecta- sites, then you need to get out and have the gym. As Sinclair puts it: “Spend some
tions, and it can be easy to some real social contact. A night in the time being, and not doing.”
lose touch with the other pub can do wonders for the mental health. www.city-psychology.co.uk
 24 Lifestyle | Food & Drink CITYA.M. 5 OCTOBER 2010

Queen of cakes gives tea a twist

The world’s finest
female patissiere is
back in London,
writes Zoe Strimpel

I
ACTUALLY wanted to be a musician,”
says Claire Clark. Unfortunately, her
flute and violin playing wasn’t up to
scratch. Happily for us, it meant she
became the world’s best female patissiere,
soon to open up a decadent cake shop –
think champagne and chaises longues –
in London.
“My mother cooked everything,” says
Clark, recently back from a four-year stint
at the three Michelin-starred French
Laundry in Napa, California, and now sit-
ting with me over her very own afternoon
tea at Harvey Nicks. “We never even had
chocolate biscuits from a packet. She
made flapjacks, chocolate cakes, jam
tarts, little choux eclairs; she’d do it all
with her coal Aga. I remember her keep-
ing meringues in the Aga overnight and
then sticking them together with cream.”
With a mother like that and a predilec-
tion for baking herself, Clark’s alternative
profession was soon clear, and she headed
off to catering school. “I knew I wanted to
do pastry, not kitchen.” After a job in the
kitchen at Crockfords in Curzon Street,
she landed a pastry job at the Ritz, work-
ing 8AM-2AM (not wholly different from
her current hours), and producing a good
deal of strawberry tarts – this was the
Eighties, after all. “It was so glamorous, I
was just a little country girl,” says Clark,
who still has pink cheeks, a fresh face and
a straightforwardly friendly air. She went
on to help launch the Bluebird, the
Wolseley, set up pastry at the House of
Commons and taught for three years at ly because it bears the imprint of her time macaroons, popcorn, brownies and so on, Claire Clark is rather than the usual cut bread – I can
Cordon Bleu. “Eventually, after 20 years in in the US. There is bubblegum pavlova; all beautifully packaged and made by her). reinventing vouch for the difference of flavour profile.
London, I thought: ‘What am I doing?’” peanut butter s’more cake (my favourite); With so many afternoon teas now in afternoon tea No cake stands in sight, either: we had
Battenburg; Jaffa cake truffle; lemon London – everyone from the Mandeville in neon orange square slabs to nibble off.
POPCORN SHERBERT madeira, mango mousse and violet eclair. Marylebone to the Dean Street Townhouse Picture: Apart from the American element, the
Which was when Thomas Keller, a super- This is the second time Clark has serves it with fanfare – why is Clark both- Micha Theiner other striking part of Clark’s tea is the nos-
star in the US and the man behind the seen these today – she made them ering? “It’s so same-as. Everyone does tea /City A.M. talgia aspect – the cakes actually appear on
French Laundry, hired her (she had to that morning. Living temporarily on a cake stand. It’s always mille- the menu as “Nostalgic Cakes”. The home-
make six different types of petits fours, with a friend in Neasden, North feuille and tarts. Nobody ever made Jaffa cakes and the snowballs of her
two chocolates, a brasserie-style dessert London, Clark is up in time to wait really revamped or redesigned childhood were the motivation – “I wanted
and a chocolate tart on several occasions for a 5AM bus to central London. A it – I feel the same way about to do things that were fun.” She has more
to get the job). Her specialities included friend lets her use the spacious facil- pastry shops. So I’m trying to than succeeded and we’re lucky to have
the likes of lemon posset with divine, thin- ities at the Hilton Metropole on the think differently and to pres- her back. Now. Let us eat cake.
skinned Meyer lemons and popcorn sher- Edgware Road for her morning bake, ent a different flavour pro- The Claire Clark Afternoon Tea runs
bet. then she transports the goodies to file.” After the sandwiches – until 10 Oct at Harvey Nichols Fifth Floor and
And here we are, with by far the most Harvey Nicks’ Fifth Floor, where she has which come on mini bagels and costs from £35. To book, call 020 7235 5250. Her
original afternoon tea I’ve ever had – large- a pop-up patisserie too (marshmallows, focaccia and even a hot dog bun patisserie will be open until 17 Nov.

RESTAURANT REVIEW BY JEREMY HAZLEHURST

Spice that’s ing Cal-Mex chain. Interestingly, it is

spreading at just the same time that the
American burrito chain Chipotle has

nice at slow- launched into London. (By the way, the

name does not rhyme with “bottle” as
some people seem to think, but is pro-

mo Cal-Mex nounced chip-ot-lay.) Add in Wahaca and

Chilango, and it’s clear that Mexican of
various sorts is the hottest fast-food of the
moment.
The first thing to say about Tortilla is
Tortilla that those queues aren’t just a result of its
popularity. They need to seriously speed
28 Leadenhall Market, EC3V 1LR up their service. Being laid-back is nice,
Tel: 020 7929 7837 but not at lunchtime. Arriba, arriba!
Anyway, the deal is that it’s a pick-and-
FOOD hhhii mix of fillings for your burrito. There’s a
SERVICE hhhii choice of three meats – grilled chicken
ATMOSPHERE hhhii (pollo asado), pork (carnitas) and steak
(carne asada) – pinto or black beans, gua-
Cost per person without wine: £8 camole (at 70p extra, believe it or not),
Monterey Jack cheese, rice and so on.

I
F you go down to Leadenhall Market
today at about one o’clock, round
towards the bottom of the Lloyds
building, you’ll see a big, big queue. It
only opened a few weeks ago, but already
Tortilla has become a fixture for hungry,
spice-loving City workers.
This is the fifth in the quickly-expand-
The first time I went I had the beans,
and while it was nice it didn’t have the
fresh zing and contrast that you need. You
want a hit of guacamole in one bite, then
a blast of chilli in the next, cooled by sour
cream. This was a spicy mush. The second
time I went for the carnitas. Oddly, this
was also underwhelming, lacking that
Queueing for burritos.
deep, piggy flavour.
Still, maybe I’m being too fussy. This is
not San Francisco. The hordes of cus-
tomers seem to be happy, and for a warm-
ing belly-filler this winter there’s not a lot
in the City to match it. I’ll be back. Soon.
CITYA.M. 5 OCTOBER 2010 Lifestyle | TV& Games 25

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm Holby City
9pm CHOICE Kids in Care:
Panorama examines the lives of
children in the British care
system.
10pm BBC News
10.25pm Regional News
10.35pm My Story
11.05pm FILM House of Sand
and Fog: 2003; Weatherview
1.10am Sign Zone: See Hear 1.40am
Sign Zone: Digging for Britain
2.40am Sign Zone: Natural World
3.40am Sign Zone: Britain’s Empty
Homes 4.10am-6am BBC News
6pm Eggheads
6.30pm Strictly Come Dancing
– It Takes Two
7pm Games Today
8pm MasterChef: The
Professionals
9pm Whites
9.30pm CHOICE Harry & Paul:
Comedy sketch show, with
Harry Enfield and Paul
Whitehouse.
10pm Later Live – with Jools
Holland
10.30pm Newsnight: Weather
11.20pm Today at Conference
11.50pm Gareth Malone’s
Extraordinary School for Boys
12.50am BBC News
4am-6am BBC Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Grimefighters 7.55pm 4thought.tv 7.30pm How to Take Stunning
8pm New Who Wants to Be a 8pm Wedding House Pictures: Five News Update
Millionaire? 9pm Ramsay’s Best Restaurant 8pm There’s a Hippo in My
9pm CHOICE 71 Degrees 10pm Seven Days House: Five News at 9
North: The remaining six 11.05pm 3 Minute Wonder: 9pm CSI: Miami
celebrities face a three-stage New Sensations 2010 10pm CSI: NY: Five News
challenge. 11.10pm Rude Tube Special Update
10pm ITV News at Ten 2010 11pm CSI: Crime Scene KIDS IN CARE
10.30pm London News 1.10am Late Night Poker 2.05am
Investigation BBC1, 9PM
Beach Volleyball 3am KOTV Boxing
10.35pm Swingtown 12am NCIS Panorama examines the kind of life the
Weekly 3.25am Superbike World
11.30pm Ladette to Lady Championship 2010 3.50am British 12.55am SuperCasino British care system is able to offer
12.25am The Zone; ITV News Formula 3 International Series 4.05am Police Interceptors youngsters, focusing on children being
Headlines 4.20am World Sport 4.45am Brief 4.55am Animal Rescue Squad looked after by Coventry social services.
2.25am The Rockford Files 3.20am Encounters of the Sporting Mind: 5.10am Michaela’s Wild Challenge
The Jeremy Kyle Show 4.15am- Sheepdog 4.50am-6.10am 5.35am-6am Michaela’s Wild
5.30am ITV Nightscreen Hercules Challenge

SKY SPORTS 1 BRITISH EUROSPORT Dead Diva 10pm Teen Mom Cleveland Show 1.50am The 3.50am Raging Planet 4.40am
SATELLITE & CABLE

6pm Live Darts. The World
Grand Prix. 12am Johnstone’s
Paint Trophy Football 1.30am
15 Years of the European Cup
2.30am Revista De La Liga
3.30am 15 Years of the
European Cup 4.30am A-
League 5am-6am Revista De
La Liga
SKY SPORTS 2
7pm Live Johnstone’s Paint
Trophy Football 9.30pm
Revista De La Liga 10.30pm
Poker Million 12.30am Golfing
World 1.30am Golf 2.30am-
3.30am Sports Unlimited
SKY SPORTS 3
6.30pm 15 Years of the
European Cup 7.30pm Live
Greyhound Racing. The Stan
James Laurels. 10pm The
Ultimate Fighter 11pm Football
Asia 11.30pm A-League
12am Polocrosse 1am Polo
2am-4am Poker Million
7pm Champions Club 7.30pm
Live Equestrian 10pm Porsche
Super Cup 10.30pm Test Drive
11.30pm Eurogoals 12am-
12.40am Champions Club
ESPN
5.15pm NFL 7.45pm
Premiership Rugby Union
9.15pm French Top 14 Rugby
Union 9.45pm ESPN Premier
League Kicks 10pm Pardon the
Interruption UK 10.30pm
Premier League Review
11.30pm Eredivisie Review
Show 12.30am Press Pass
2010 1am Russian Premier
League Review 1.30am
AFL Review Show 2.30am
ESPN Game of the Week
3am Eredivisie Review Show
4am-5.15am Bundesliga
Review Show
LIVING
7pm Baggage 7.30pm Britain’s
Next Top Model 9pm Drop
11pm Criminal Minds 12am
CSI: Crime Scene Investigation
2am Charmed 3am Diet on the
Dancefloor 4.40am The Jerry
Springer Show 5.30am-6am
Home Shopping
BBC THREE
7pm Total Wipeout 8pm The
Real Hustle: Celebrity
Scammers 9pm Don’t Tell the
Bride 10pm EastEnders
10.30pm Ideal 11pm Ideal
Outtakes 11.30pm Family Guy
12.15am Don’t Tell the Bride
1.20am Bizarre ER 2.20am
Ideal 2.50am Ideal Outtakes
3.20am Total Wipeout 4.20am-
5.20am Cherry Goes Drinking
E4
7pm Hollyoaks 7.30pm Friends
9pm Smallville: Tess breaks into
the Watchtower. 10pm The
Cleveland Show 11pm The Ricky
Gervais Show 11.35pm King of
the Hill 12am Scrubs 1am The
Ricky Gervais Show 2.20am Unsolved History 5.30am-6am
King of the Hill 2.40am What How Does That Work?
About Brian 3.20am
Samantha Who? 4.05am The DISCOVERY HOME &
Hills 4.25am-6am Switched HEALTH
7pm Extreme Pregnancy 8pm HARRY & PAUL
HISTORY The Incredible Shrinking BBC2, 9.30PM
7pm How the Earth Was Made Woman 9pm Twins by Surprise Parking Pataweyo finds a way into the
8pm Mysteryquest 9pm 10pm World of Compulsive record books. Comedy sketch show,
Ancient Discoveries 10pm Hoarders 11pm I’d Kill for a with Harry Enfield and Paul
Decoding the Past 11pm The Baby 12am Twins by Surprise Whitehouse.
Nostradamus Effect 12am 1am World of Compulsive
Ancient Discoveries 1am The Hoarders 2am I’d Kill for a Baby
Lost Evidence 2am How the 3am The Incredible Shrinking
Earth Was Made 3am The Real Woman 4am A Baby Story
Jason and the Argonauts 4am- 5am-6am Bringing Home Baby
5am Britain’s Real Monarch
SKY1
DISCOVERY 8pm The Little Couple 8.30pm
8pm How Do They Do It? Super Nurses 9pm Stargate
8.30pm How It’s Made 9pm Universe 10pm Fringe: New
Trawler Wars 10pm Deadliest series. Olivia fights to return 71 DEGREES NORTH
Catch 11pm Building the Future home. 11pm FILM Bitten 2007 ITV1, 9PM
12am Bear Grylls: Born Survivor 12.45am Road Wars 2.40am The remaining six celebrities face a
1am Deadliest Catch 2am Rory Lost 3.30am Street Wars snowmobile ride to a frozen waterfall.
McGrath’s Best of British 4.20am Vroom Vroom 5.10am- Kate Thornton and Gethin Jones
Engineering 3am Weaponology 6am Sell Me the Answer present.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
10 13 11 42 6 8 41 26 
27 27

15 17
Place the numbers from 1 to 9 in each empty cell so that each 23  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 16 4
22 38 9
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 35 12
  
above or to the left of it. 36
You can only use the digits 1-9 16 17  
   and you must not use the
7 16
14 30   
same digit twice in a block. 20
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6
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12 8 13 
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   ACROSS DOWN
1 Obtuse (6) 1 Fires from a job (5)
   
  WORDWHEEL R N
6 Citrus fruit (6)
7 Dental decay (6)
2 Hang about (6)
3 Give medicine to (4)
Using only the letters in the Wordwheel, you have
   ten minutes to find as many words as possible,
T G 8 Breadwinner (6) 4 Entangle (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters G 10 Undersides of
the feet (5)
5 Hair on the chin (5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
T E 13 Device attached to
9 High male voice (4)
11 Signs indicating that
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
I U
a computer (7)
the driver of a car
16 Looks at lecherously (5) is a learner (1-6)
QUICK CROSSWORD 6 1 3 9 8 1 2

$ 6 + 5 ( & 2 8 1 7
9 7 4 1 8 6 3 7 SUDOKU         
18 Astonished (6) 12 Face (4)
6 2 9 7 5 8          20 Apprehension (6) 14 Emergence (6)
5 $ $ 8 $
8 9 8 6 5 9
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6 8 0 0 ( 5 5 2 $ 5 1 3 6 2 2 4 3 1 into pieces or
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 Sport
26 CITYA.M. 5 OCTOBER 2010

Results RYDER CUP

FULL MONTY
COMMONWEALTH GAMES
2010
GYMNASTICS — Men’s Artistic Team Competition Final: 1 BY JON COUCH
Australia 259.050, 2 England 256.750, 3 Canada 248.500, 5 COLIN MONTGOMERIE spoke of his
Wales 240.450.
pride in leading Europe to Ryder
SWIMMING — Finals, Men, Freestyle 400m: 1 R Cochrane
(Can) 3:48.480, 2 R Napoleon (A) 3:48.590, 3 D Carry (Sco) Cup glory at Celtic Manor – but
3:50.060, 4 D Davies (Wal) 3:50.520, 6 R Renwick (Sco) then revealed it was only a one-off.
3:51.740, 8 R Charlesworth (Eng) 3:58.500. Butterfly 200m: The Scot captained the European
1 C Le Clos (SA) 1:56.480, 2 M Rock (Eng) 1:57.150, 3 S team to a 14½–13½ victory after one
Hirniak (Can) 1:57.260, 6 J Roebuck (Eng) 1:57.440, 7 R
Pavoni (Eng) 1:58.130. 4x100m Freestyle Relay: 1 Australia of the most thrilling rounds of sin-
3:13.920, 2 England 3:15.050, 3 South Africa 3:15.210, 5 gles matches in history.
Scotland 3:20.700, 7 Northern Ireland 3:27.920. Women, Graeme McDowell was the hero,
Freestyle: 200m: 1 K Palmer (A) 1:57.500, 2 J Carlin (Wal)
1:58.290, 3 R Adlington (Eng) 1:58.470, 5 J Jackson (Eng) securing a 3&1 victory over Hunter
1:58.660. Individual Medley 200m: 1 A Coutts (A) 2:09.700, Mahan in the decisive match to help
2 E Seebohm (A) 2:10.830, 3 J Wilkinson (Can) 2:12.090, 5 the Europeans regain the trophy
H Miley (Sco) 2:12.900, 6 A Willmott (Eng) 2:15.380, 8 K they lost at Valhalla two years ago.
Hutchinson (Eng) 2:15.750.
But after orchestrating victory,
WEIGHTLIFTING — Finals, Men, 56kg: 1 A Ibrahim (Mal)
257pts, 2 SDey (Ind) 252, 3 R Vs (Ind) 248. Women, 48kg: captain Monty confirmed he has no
1 A Nwaokolo (Ngr) 175pts, 2 S Ngangbam (Ind) 167, 3 S intention of going through it again.
Atom (Ind) 165. “This is a one-hit time, I will not
CRICKET be doing this again,” he said. “I
FIRST TEST MATCH: Australia v India (Mohali); Australia think it’s only right that it should be
428 (S R Watson 126, T D Paine 92, R T Ponting 71, Z Khan shared around.”
5-94) and 192 (S R Watson 56) v India 405 (S R Tendulkar Monty also heaped praise on US
98, S K Raina 86, R Dravid 77, V Sehwag 59, M G Johnson 5- Open champion McDowell, who
64) and 55-4 (17.0 overs).
became the latest in a long line of
GOLF Irishmen including Eamonn Darcy,
38TH RYDER CUP (Celtic Manor Resort, Newport, Wales)— Christy O’Connor, Philip Walton
Singles (Europe names first) L Westwood lost to S Stricker 2 and Paul McGinley, to etch their
& 1, R McIlroy v S Cink Match halved, L Donald bt J Furyk 1
up, M Kaymer lost to Dn Johnson 6 & 4, I Poulter bt M Kuchar name in Ryder Cup folklore.
5 & 4, R Fisher lost to J Overton 3 & 2, M A Jimenez bt B “G-Mac was put there [final
Watson 4 & 3, F Molinari lost to T Woods 4 & 3, E Molinari v R match] for a very good reason,”
Fowler Match Halved, P Hanson lost to P Mickelson 4 & 2, P
Harrington lost to Z Johnson 3 & 2, G McDowell bt H Mahan 3 Monty added. “He’s the US Open
& 1. Match score: Europe 14.5 USA 13.5. champion, he’s full of confidence
and that showed. That birdie on 16
TODAY’S DIARY was unbelievable.
(Football 7.45pm unless stated) “But I want to talk about how well
Johnstones Paint Trophy Northern Second Round everyone played, because to a man
Bury v Shrewsbury .................................................................................................... they were magnificent and they all
Carlisle v Port Vale .................................................................................................... gave me 110 per cent, which was all
Hartlepool v Bradford (7pm)..................................................................................
Huddersfield v Peterborough (7pm).................................................................... I could ask for.
Macclesfield v Crewe (7.30).................................................................................... “[Winning] means the world for
Southern Second Round European golf. It’s a very proud
Barnet v Southend...................................................................................................... moment for us all here in Europe.
Bristol Rovers v Aldershot (7.15).......................................................................... They all played to a man magnifi-
Cheltenham v Plymouth .......................................................................................... cently. I knew I had a great 12.”
Colchester v Wycombe (7.30)................................................................................
Hereford v Exeter........................................................................................................ Leading 9½–6½ going into the
Leyton Orient v Brentford (7.15) .......................................................................... first-ever Ryder Cup fourth day,
Milton Keynes Dons v Charlton (7.15) ................................................................ Monty’s men needed just five points
Swindon v Torquay (7pm)........................................................................................ from the remaining 12 singles The European team and captain Colin
COMMONWEALTH GAMES matches to regain the trophy. Montgomerie, parade the Ryder Cup.
2010 Commonwealth Games (Delhi, India). At one stage, no fewer than eight Picture: ACTION IMAGES
CRICKET of the matches were lit blue, but just
when it looked like a big victory
First Test Match—day 5 of 5: India v Australia (Mohali).
First One Day Int’l: Bangladesh v New Zealand (Mirpur).
could be on the cards, the Kuchar 6&5 before Luke Donald held fellow rookie Ross Fisher, and Tiger to beat Molinari’s brother Edoardo.
Americans hit back. off Jim Furyk for a single-shot win. Woods – nine under par and seven Yet McDowell, however, only need-
DARTS Steve Stricker led the charge, com- Rory McIlroy then played his part under for his last seven holes – record- ed a half to ensure victory and that
SkyBet World Grand Prix (Dublin, Ireland). ing back from two down to beat new with a crucial up and down from the ed a 4&3 win over Francesco Molinari. was assured when a superb 15-foot
TENNIS world No2 Lee Westwood 2&1, bunker on the final green to snatch a Phil Mickelson, pointless from his putt for birdie at 16 moved him two
ATP Rakuten Japan Open (Tokyo, Japan). before Dustin Johnson returned to crucial half from Stewart Cink. first three games, continued the clear with two to play.
ATP &WTA China Open (Beijing, China ). form to thrash Martin Kaymer 6&4. Miguel Angel Jimenez followed trend with a 4&2 victory over Peter And victory was confirmed when
Back came the Europeans, howev- with a 4&3 success over Bubba Hanson, Zach Johnson hit back to Mahan failed to sink a long putt for
SPORTS EDITOR JON COUCH er, with Ryder Cup specialist Ian Watson, but then the Americans set beat Padraig Harrington, and 21- his par at the short 17th, conceding
email sport@cityam.com Poulter taking centre stage. He mag- up a nerve-jangling finale with a des- year-old rookie Rickie Fowler recov- McDowell’s putt to spark wild cele-
nificently disposed of in-form Matt perate late surge. Jeff Overton beat ered from four down with six to play brations.

Adlington leads English medal charge Boxing weigh-in

delayed due to
events in which the 21-year-old has scales complaints
▲

COMMONWEALTH GAMES
BY FRANK DALLERES won Olympic golds, but is trying out
the 200m with a view to expanding
OLYMPIC swimming star Rebecca her repertoire at London 2012. GAMES organisers suffered
Adlington enjoyed more success as “I’m very pleased with that swim, another setback yesterday when
the Commonwealth Games got the 200m for me is a bonus event, and boxing weigh-ins were postponed
underway in Delhi yesterday, leading it’s nice to get involved,” she said. amid concerns the scales were
a host of English medals in the pool. “It’s definitely a tough week but giving faulty readings.
Adlington took bronze in the now’s the time to try it, try to cope Australian officials com-
women’s 200m freestyle, an event she with it and see how you do. If I don’t plained after one of their fighters
is only experimenting with having cope with it and tire towards the end was deemed overweight, and
specialised in longer distances, with of the week, I have the chance to say it new readings will be done today
Jazz Carlin of Wales grabbing silver. didn’t work for me. Better to try it after the scales have been recali-
England’s Michael Rock swam to now than at the Worlds or Olympics.” brated.
the silver medal in the men’s 200m, Carlin, the first Welsh woman to “They went to the sauna trying
while the men’s 4x100m freestyle win Commonwealth gold for 36 to lose weight and when they
team also took silver. Scotland’s David years, said: “I’m really chuffed. It’s came back weighed more than
Carry won bronze in the men’s 400m been so long since a Welsh woman the last reading,” said an
freestyle. Outside of the pool, there won medals, it’s such an honour.” Australian spokesman.
was more silver for England in the Rock, beaten to gold by South Indian officials have already
men’s team gymnastics, where they Africa’s Chad le Clos, said: “I’ve had a been hit by the withdrawal of
were edged out by Australia. great year, finishing my degree and several stars, the collapse of a
Adlington is better known for her now a great performance at a major bridge, and health fears.
triumphs in the 400m and 800m, meet to win my first medal.” Adlington won bronze in a less familiar event, the 200m freestyle. Picture: ACTION IMAGES
CITYA.M. 5 OCTOBER 2010
SINGLES MATCHES
Westwood v Stricker won 2&1
McIlroy v Cink (A/S)
Donald 1up v Furyk
Kaymer v D Johnson won 6&4
Poulter won 6&5 v Kuchar
Fisher v Overton won 3&2
Jimenez won 4&3 v Watson
F Molinari v Woods won 4&3
E Molinari v Fowler (A/S)
Hanson v Mickelson won 4&2
Harrington v Z Johnson won 4&3
McDowell won 3&1 v Mahan
FINAL SCORE
EUROPE 14 1/2
UNITED STATES 13 1/2
Veteran Davies earns shock call-up from Capello
▲
FOOTBALL
BY FRANK DALLERES
HE thought his chance had passed,
but at the age of 33 Bolton forward
Kevin Davies was yesterday handed
his first England call-up for next
week’s Euro 2012 qualifier against
Montenegro.
Davies was by far the most surpris-
ing name in Fabio Capello’s 23-man
squad, which also includes teenage
Arsenal midfielder Jack Wilshere,
despite him being named in the
Under-21 squad.
West Ham goalkeeper goalkeeper
Robert Green, dropped after the
World Cup for his infamous blunder
against the USA, has won a surprise
recall, while Liverpool’s Joe Cole is
also back in favour.
Long-standing central defensive
pair John Terry and Rio Ferdinand
also both return from injury, and
The best Ryder Cup battle for years
OUR MAN AT CELTIC MANOR
SAM TORRANCE
F
OR one reason or another, this
Ryder Cup at Celtic Manor will
live long in the memory. Not
only was it the first time in its
83-year history that it went into a
fourth day due to the downpours of
Friday and Sunday, but it was also a
damn fine spectacle.
Not for a long, long time can I
remember so many twists and turns
HOW THE RYDER CUP WAS WON
Steve Stricker fights back to record a 2&1
win over new world No2 Lee Westwood
Now Europe are flying and Luke Donald
holds off Jim Furyk to continue the charge
Wayne Rooney is deemed fit
enough despite missing
Manchester United’s last
two matches.
But it is the selection
of Davies, who has
plied his trade at a
series of unfashion-
able clubs, that will
raise the most eye-
brows. The former
Chesterfield trainee,
who has also played for
Blackburn and
Southampton, has never
been prolific, scoring just 63
times in 295 appearances for
Bolton, with just two in eight
this season.
Davies (right) himself
admitted in an interview earli-
er this season that he thought
his England chance had passed
him by, having reached
on singles day, culminating in Europe
eventually claiming back the cup on
the penultimate green and the very
last match.
Europe captain Colin Montgomerie
insisted he deliberately placed
Graeme McDowell in the final pair-
ing – and what a stroke of genius that
proved to be. He kept a cool head to
produce a moment of magic with
that monster putt for birdie at 16. It
really was one of those special Ryder
Cup moments.
FIST-CLENCHING
Indeed, it capped an absolutely
remarkable day’s play which brought
some top drawer golf.
From Rory McIlroy’s brilliant up
and down from the bunker at 17 to
help clinch a half with Stewart Cink,
to Rickie Barnes’ tremendous birdie
Dustin Johnson continues the charge for
USA by thrashing Martin Kaymer 6&4
But Tiger Woods’s storming round against
Francesco Molinari turns the tide again
Capello’s expanded squad before only
to fail to make the final cut.
His inclusion this time is largely
down to a dearth of other options,
with Tottenham’s Jermain Defoe,
Arsenal’s Theo Walcott,
Fulham’s Bobby Zamora and
Aston Villa’s Gabriel
Agbonlahor all ruled out by
injury.
Newcastle youngster Andy
Carroll had been strongly tipped
to earn a first senior call-up, having
been omitted from the Under-21
squad, but has been left out after
being dropped by his club.
Aston Villa’s Emile Heskey, who
announced his international retire-
ment in the aftermath of the World
Cup, has enjoyed a resurgence but is
thought to have rejected the
chance to return to the fold.
Whether Davies earns a debut
remains to be seen, with Capello
at the last to complete his comeback
against Edoardo Molinari. It was liter-
ally thrill a minute.
For once, Tiger Woods wasn’t the
main attraction but he responded by
shooting nine-under-par in his win
over Francesco Molinari.
But man of the moment this time
was Ian Poulter. He led his team
home with a 35-yard putt on the
third and then three birdies and an
eagle from the five holes played on
the back nine to complete a mightily
impressive win over Matt Kuchar –
just as he promised he would.
With his fist-clenching celebration
on reeling off brilliant shot after bril-
liant shot, Poulter encapsulated the
spirit and determination of the
European team.
It also ensured he finished as
Europe’s top points scorer for a sec-
Pumped-up Ian Poulter leads the European
assault with a big win over Matt Kuchar
Rickie Barnes then wins the final three holes But Graeme McDowell holds his nerve to see
to snatch a half against Edoardo Molinari off Hunter Mahan in the deciding match
also having Rooney, Tottenham’s Peter
Crouch and Sunderland’s Darren Bent
among his forward options.
Capello hinted yesterday that Bent
might be in line for a more promi-
nent role, having appeared to have
finally won over the Italian with a
first international goal against
Switzerland last month.
“Bent is back,” he said. “In front of
goal, he is really dangerous. He played
20 minutes against Switzerland and
scored an important goal. Now he is
training really well. He is probably one
of the important players for the
future.”
Wilshere, meanwhile, who has
been a revelation for the Gunners this
season, could add to the debut cap he
won against Hungary in August.
The 18-year-old is set to join up with
the squad after playing for the Under-
21s in Friday’s European
Championship play-off with Romania.
Sport 27
ond successive Ryder Cup.
And then there’s the captain him-
self. This was simply the biggest and
best day of Monty’s life and he thor-
oughly deserved it.
Whether it be his preparation and
attention to detail in the two years
leading up to Celtic Manor, or his lead-
ership, motivational skills and deci-
sion-making out on the course itself,
he did a tremendous job and his team
responded by doing him proud.
But it wasn’t just the performance
of the European team which made
this Ryder Cup so memorable.
The 35,000-strong crowd were phe-
nomenal throughout – despite the
weather – and they were very fair on
an American team, who also deserve
huge credit for the way they played
and for putting up such a tremen-
dous fight.
Rory McIlroy then keeps his cool to clinch a
vital half in his match with Stewart Cink
ENGLAND | TO PLAY MONTENEGRO
Goalkeepers: Ben Foster (Birmingham),
Robert Green (West Ham), Joe Hart
(Man City). Defenders: Ashley Cole
(Chelsea), Phil Jagielka (Everton), Glen
Johnson (Liverpool), Rio Ferdinand (Man
United), Joleon Lescott (Man City), John
Terry (Chelsea), Stephen Warnock
(Aston Villa) Midfielders: Gareth Barry
(Man City), Joe Cole (Liverpool), Steven
Gerrard (Liverpool), Tom Huddlestone
(Tottenham), Adam Johnson (Man City),
Aaron Lennon (Tottenham), Jack
Wilshere (Arsenal), Shaun Wright-
Phillips (Man City), Ashley Young (Aston
Villa) Forwards: Darren Bent
(Sunderland), Peter Crouch (Tottenham),
Kevin Davies (Bolton), Wayne Rooney
(Man United)
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