BUSINESS WITH PERSONALITY

When your wife’s on the

operating table, the last thing
you need is a jobsworth on
the phone.
It was a Saturday afternoon when
Sylvia Cooper was rushed into
hospital for a life-saving operation.
On Monday morning her husband
Allen phoned Aviva, apprehensive
because he hadn’t been able to
clear the costs beforehand.
Aviva advisor Hayley Gerrard told
him not to worry. She took it
on herself to make sure all the
expenses were cleared, and called
Allen daily to check on Sylvia’s
progress.
“I said to my son before I called, I
just hope I don’t get a jobsworth,”
Allen recalls. “And I didn’t. I got an
angel.”
At Aviva, we know that insurance
isn’t about policies. It’s about people.
That’s why, in cities across the world,
we’re exhibiting dozens of giant
portraits celebrating the people
who are most important to us – our
customers.
You can read the stories behind the
photographs, and upload your own
photograph, at
youarethebigpicture.com

Issue 1,236 Thursday 7 October 2010
JOB FREEZE LOOMS
AS FIRMS SUFFER
UK ECONOMY
▲
BY MATTHEW WEST
ABOUT 5,000 fewer jobs than expect-
ed will be created in the City this year
as government proposals to introduce
a permanent immigration cap, the
50p tax rate and regulatory uncer-
tainty force investment banks to put
the brakes on hiring.
Economic consultancy the Centre
for Economic and Business Research
(CEBR), which tracks financial servic-
es recruitment, yesterday slashed its
forecast for the number of jobs creat-
ed in the City in 2010 by a third from
14,000 to 9,600, while forecasting dire
prospects for 2011 saying only 2,700
new jobs would be created.
It expects the average number of
people working in the sector in
Britain to increase from 305,000 to
315,000 this year, rising to 318,000 in
2011. This is a significant downgrade
from just six months earlier when it
forecast that the average number of
people working in the sector would
rise to 319,000 this year and 327,000
next year.
The group said the coalition gov-
ernment’s increasingly “anti-busi-
ness” proposals were forcing some of
the City’s biggest players to freeze
recruitment.
“There was a lot of talk from the
coalition government when it first
came to power about how Britain was
open for business again but a lot of
FTSE 100 ▲ 5,681.39 +45.63 DOW ▲ 10,967.65 +22.93
WINNER!
MOST
POPULAR
SHOW
Laurence Olivier
©WLPL
Awards 2010
BUSINESS WITH PERSONALITY
THE RETURN OF GORDON
GEKKO: WALL STREET II
FILM REVIEW SPECIAL P26
The government is making it harder to do business in the UK says the CEBR
businesses are quite concerned about
the measures that are potentially
about to be brought in because they
are going to make it much harder to
do business in the UK in the future,”
said Scott Corfe, economist at the
CEBR.
Corfe said the biggest concern of
legal, business services and invest-
ment companies was the immigra-
tion cap, introduced in July, which
limits the number of skilled workers
NASDAQ ▼ 2,380.66 -19.17
WINNER!
BEST
WEST END
SHOW
Whatsonstage.com
Awards 2010
www.cityam.com
49,000
city jobs lost in
2008-9*
entering the UK from outside of the
European Union to 24,100. Due to be
made permanent next April, critics of
the cap say it means companies will
not be able to bring in enough skilled
workers to carry out vital functions
that help them grow their business.
The CEBR says together with the 50
per cent tax on higher earnings and
regulatory uncertainty, businesses
could be forced to move abroad.
JP Morgan Chase, Deutsche Bank
£/$ ▼ 1.59 -0.01 £/¤ ▼ 1.14 -0.01 ¤/$ ▼1.39 -0.01
0844 826 8000 WickedTheMusical.co.uk
APOLLO VICTORIA THEATRE SW1V 1LG
9,600
new city jobs in
2010 cut from
14,000*
2,700
new city jobs in
2011*
*according to the CEBR
Picture: GETTY
and PricewaterhouseCoopers (PwC)
have all expressed concerns about the
immigration cap. PwC warned recent-
ly that businesses were “struggling to
operate” and having to put projects
on hold. A Treasury spokesperson
said the government was committed
to ensuring the City “remains a com-
petitive location for financial servic-
es” but that also meant reducing “the
systemic risk the financial services
sector poses to the wider economy.”
EXTRA SHOWS
ON SALE FOR
HALF TERM &
CHRISTMAS!
WickedTheMusical.co.uk
NOT OVER FOR
LIVERPOOL
OWNERS COULD
LAUNCH A LEGAL
CHALLENGE P31
FREE
Cameron
lashes out
at banks
CONSERVATIVE
CONFERENCE
BY DAVID CROW IN BIRMINGHAM
DAVID Cameron stepped up his rheto-
ric against the City yesterday, using
his first conference speech as Prime
Minister to hit out at banks and big
business.
He said the tripartite system of reg-
ulation was partly to blame for the
economic crisis, but that individual
bankers had to take more responsibil-
ity.
“Labour failed to regulate the City
properly. But they didn’t force those
banks to take massive risks with
other people’s money,” Cameron said.
On the final day of the first
Conservative conference in govern-
ment for 14 years, Cameron repeated
calls for banks to lend more to small
businesses.
“Taxpayers bailed you out, now it’s
time for you to repay the favour,” he
said.
The £2.5bn levy on banks was one
of the coalition’s most important
achievements, he said, while aides
confirmed he was considering a sec-
ond banking levy on profits and
remuneration.
Although there were warm words
for “doers, grafters, inventors, and
entrepreneurs,” Cameron played
down the importance of big business
to the economy. “When you think of a
wealth-creator, don’t think of the
tycoon in a glass tower. Think of the
man… who cleans windows,” he said.
CUTS DELAY: P2, CONFERENCE: P7
Certified Distribution
02/08/10 – 29/08/10 is 93,782
 2 News
We need an investment-led recovery
EDITOR’S LETTER
ALLISTER HEATH
O
NE of the main arguments
being used by sceptics to attack
David Cameron’s austerity
package is that Barack Obama’s
America is still attempting to pump-
prime demand. If the US thinks the
way out is for the state to spend more,
and rack up an ever larger deficit,
then why aren’t we following suit?
So it is worth taking a look at what
is really happening in the US, why
Obama’s stimulus is actually failing to
stimulate and why the coalition right
to be going down a different route.
Robert Higgs, an economist at
7th Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
BUSINESS PLEADS FOR A STRATEGY
Business leaders urged David
Cameron to turn his pro-enterprise
rhetoric into a detailed strategy that
would deliver better infrastructure
and remove obstacles to growth.
David Frost, director-general of the
British Chambers of Commerce said
corporate Britain was strongly behind
the government’s effort to shrink the
budget deficit but nervous about the
impact that cuts could have.
BUY-OUT GROUPS EYE BT’S TECH
MAHINDRA STAKE
Private equity groups are in talks
with BT about buying the UK tele-
coms group’s 31 per cent stake in
Tech Mahindra, one of India’s largest
software services providers, in a deal
worth up to $800m (£506m). Apax
Partners, Providence Equity and
Goldman Sachs Private Equity are
among the buy-out groups in talks
California’s Independent Institute, has
crunched the numbers in a superb
piece of analysis.
The story starts with a basic fact. It is
often argued that governments must
boost consumer spending by increas-
ing handouts or hiring staff. But reces-
sions are rarely, if ever, triggered by a
collapse in consumer spending, even
though such expenditure accounts for
the bulk of GDP; rather, it is invest-
ment which plummets, dragging
down overall activity and jobs (and
sometimes eventually feeding into
consumer spending).
Consumer spending actually
increased during the downturn as a
percentage of US GDP, going up from
69.2 per cent in the fourth quarter of
2007 to 71 per cent in the second quar-
ter of 2009. Private domestic US invest-
ment peaked in the first quarter of
2006 when $2.3 trillion (in 2005 dol-
lars) were spent by firms, worth 17.5
per cent of GDP; it troughed in the sec-
ond quarter of 2009, having collapsed
36 per cent to $1.45 trillion, 11.3 per
IMF warns of
risk of cutting
UK ECONOMY
▲
BY STEVE DINNEEN
THE government would have to revis-
it its plans for deep spending cuts if
growth substantially disappoints, the
International Monetary Fund warned
yesterday.
Speaking at the launch of the
agency’s World Economic Outlook
report, which cut the UK’s projected
rate of growth from 2.1 per cent to
two per cent, the fund’s chief econo-
mist Olivier Blanchard said the UK’s
plans would have a negative impact
on growth.
The comments contradict the IMF’s
recent report praising the govern-
ment’s plans to slash spending, and
Blanchard said the warning on cut-
ting too much, too fast applied to all
advanced economics, not just the UK.
The IMF reduced its forecast for
with BT about buying the stake in
Tech Mahindra.
HEDGE FUNDS REPORT BIGGEST GAINS
OF YEAR
Rising markets through September
and a revived appetite for risk have
propelled some of the world’s most
prominent hedge funds to post their
biggest monthly gains this year. Big-
name hedge fund managers such as
Renaissance Technologies, Paulson &
Co and Lansdowne Partners have all
reported large gains to investors in
the past few days.
SKYPE AND TWITTER NAME NEW
CHIEF EXECUTIVES
Twitter and Skype, two of the fastest-
growing private internet companies,
have appointed new chief executives.
Skype has hired Tony Bates, formerly
a rising star at Cisco Systems, as its
new chief executive. Meanwhile, Dick
Costolo who joined Twitter last year
as chief operating officer was named
chief executive on Monday.
cent of US GDP. The main problem for
the US economy is that gross private
corporate investment still remains
over 20 per cent below peak – with net
private investment a disastrous two-
thirds under its previous peak. What
isn’t a problem at all is consumer
spending, which is what most people
want to boost via stimuli programmes:
as Higgs argues, in the second quarter
of this year, personal consumption was
actually at an all-time high of close to
$9.3 trillion (in 2005 inflation-adjusted
dollars). There are many lessons here,
for Cameron as much as for those con-
vinced that trimming state spending
will kill the recovery. First, we need
firms to spend more; the UK and US
have become even more imbalanced.
They rely on too much consumer
spending and too little on savings-
financed private investment. However,
unlike last time, the right investments
need to take place. Trying to pump
artificially easy credit back into the
economy will merely lead to another
wave of incorrect investment decisions
world growth next year from 4.3 per
cent to 4.2 per cent and warned that
the global recovery could fizzle out. It
highlighted the dangers associated
with yawning public sector pensions
stretching finances to breaking point.
The IMF’s report came as the head
of the World Bank praised the govern-
ment’s determination to cut Britain’s
huge debt, saying that its actions
were “courageous and wise”.
Robert Zoellick said that the debts
carried by many countries after the
economic crisis would potentially
sow the seeds of a future crisis.
Dominique Strauss-
Kahn has warned that
government promises
could trigger a second
world recession
SFO SWOOPS IN BANKNOTE BRIBERY
INQUIRY
The British offices of a banknote
manufacturer half-owned by
Australia’s central bank were raided
by police yesterday as part of an inter-
national investigation into suspected
bribery. Over 100 police from the
Serious Fraud Office carried out
searches at nine properties connected
to Securency International, a joint
venture between the Reserve Bank of
Australia and Innovia Films, a British
chemicals manufacturer.
SABMILLER LOOKS TO ROLL OUT £6BN
BARREL IN AFRICA
SABMiller is in talks to swallow one of
Africa’s biggest brewers in a deal
worth more than £6 billion.The
Times understands that the owner of
Grolsch and Peroni Nastro Azzurro is
running the rule over the African
beer operations of Groupe Castel.
of the sort that caused the crisis in the
first place.
Second, one doesn’t get more pri-
vate investment by chasing away
multinationals, bashing tycoons,
cheering when hedge funds relocate or
by making the country a hostile place
for senior executives and high earners
(who determine most investment deci-
sions) to be based. Stability is required,
not the constant threat of new regula-
tions or taxes; what matters is the
expected profitability of the invest-
ments, so anything that will trash
them must be avoided. The net rate of
return for non-financial UK firms is
now 11.6 per cent, down from 15.1 per
cent in the fourth quarter of 2007.
Cameron is right to stick with his
austerity policy (though he was also
right to put the cuts in context yester-
day – they are not that large and are
spread over many years). But his mixed
messages towards business is a mis-
take. We need to encourage firms to
invest, not consumers to spend.
allister.heath@cityam.com
Kerviel being led away from court after his conviction
Jailed Kerviel is crushed
BANKING
▲
BY STEVE DINNEEN
CONVICTED fraudster Jerome Kerviel
said yesterday he was “crushed” by
his jail term for running up trading
losses of €4.9bn (£4.3bn).
In his first interview since he was
handed a five year sentence, with two
suspended, he said: “I’m starting to
digest it, but I’m nonetheless crushed
by the weight of the sanction and the
weight of responsibility the ruling
places on me,” adding it was like
IOD URGES BANK OF ENGLAND TO
INJECT EXTRA £50BN INTO UK ECO
The “time has now come” for the
Bank of England to pump more
money into the UK economy, accord-
ing to the Institute of Directors. The
organisation wants a further £50bn in
quantitative easing (QE), on top of the
£200bn already injected into the econ-
omy to boost the money supply.
Despite better than expected services
sector data yesterday, industry surveys
have been pointing to a slowdown in
the UK recovery.
SAINSBURY'S SALES RISE DESPITE
'DIFFICULT CONDITIONS'
Sainsbury's sales rose 2.9pc in the sec-
ond quarter, helped by online sales
and demand for premium and non-
food products, the group said in a
trading update Sales rose slightly in
the second quarter, but it warned that
the outlook remained challenging.
CITYA.M. 7 OCTOBER 2010
Cuts to public
sector spending
set for delay
▲
POLITICS
PROPOSED public spending cuts are
set to be delayed to enable the coali-
tion government to spread the pain of
the deficit reduction more evenly
over the next few years.
The forthcoming spending review
on 20 October is expected to outline
the revised timetable for cuts,
although the Treasury has insisted it
will still eliminate the deficit within a
parliament as David Cameron out-
lined yesterday in his speech.
Ahead of chancellor George
Osborne’s review the government is
looking at contracts and redundancy
costs, according to the Financial
Times. The government refused yes-
terday to confirm it would maintain
the £23bn spending cuts in 2011-12,
rising to £83bn a year cuts by 2014-15,
that it has already outlined.
Picture: REUTERS
being “hit on the head with a club”.
Kerviel has consistently argued
that Societe Generale knew he had
traded €50bn and actively encour-
aged risky behaviour.
But a judge found no evidence of
this as she handed down the jail term
on Tuesday.
Kerviel is still liable for the money
he lost, despite the fact that, given his
last salary at SocGen, it will take the
former banker nearly 50,000 years to
pay off the debt.
He says he will appeal the decision.
CURRENCY CONCERNS PUSH GOLD
HIGHER
Gold hit yet another record on its
spurt higher on broad concerns that
aggressive monetary easing is desta-
bilizing currency markets. The most
actively traded gold contract for
December delivery finished $7.40
higher at $1,347.70 an ounce on the
Comex division of the New York
Mercantile Exchange. Gold hit a high
of $1,351 during the day.
GERMAN MANUFACTURING ORDERS
JUMP
German manufacturing orders rose
in August, sharply exceeding expecta-
tions, due to strong demand from
euro-zone countries, the Economics
Ministry said Wednesday. The rise
marks a rebound from the previous
month’s decline and signals rising
industrial production for the coming
months.
CITYA.M. 7 OCTOBER 2010
BP to develop
gas fields in
Azerbaijan
▲
ENERGY
BY MATTHEW WEST
BP is expected to close a deal with
Azerbaijan’s national oil company
today to explore and develop a huge
natural-gas field in the Caspian Sea.
The field, Shafag-Asiman, has esti-
mated reserves of 17 trillion cubic
feet, according to the State Oil
Company of the Azerbaijan Republic
(Socar). If confirmed, that would
make it almost as large as
Azerbaijan’s massive Shah Deniz gas
field, where BP is already operating.
The deal is BP’s first since Bob
Dudley took over as chief executive of
the energy giant. Dudley is currently
visiting BP’s operations in Azerbaijan
along with his predecessor, Tony
Hayward.
The deal is a 50-50 production-shar-
ing agreement over 30 years and
would cement BP’s position in the oil-
rich former Soviet republic, where it
is one of the country’s biggest foreign
investors.
BP is the largest producer in
Azerbaijan and one of the largest
investors in the country, having
played a key role in opening it to
international oil companies after the
fall of the Soviet Union. Developing
the Shafag-Asiman gas field would
also reinforce Azerbaijan'’ role as a ris-
ing gas producer and exporter.
Meanwhile, Russian joint venture
TNK-BP has stepped up its efforts to
buy BP’s assets in Algeria, which the
company is selling as part of a $30bn
asset disposal plan.
ANALYSIS l BP 436.30
p 6 Oct
440
400
360
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
Irish finance minister Brian Lenihan saw the country’s rating cut again
TIME LINE | IRELAND’S MISERY
● 6 October 2010
Fitch cuts Ireland's credit rating to A+
from AA-, citing the huge cost of clean-
ing up its banks. Fitch also put its rating
on a negative outlook.
● 30 September 2010
Ireland discloses a worst case price tag
of over €50bn (£44bn) for bailing out
its banks and announces it will have to
make more budget savings.
● 28 September 2010
Standard & Poor's and Fitch warn
Ireland's rating is at risk of further
downgrades triggering a fresh leap in
borrowing costs and calls for the belea-
guered government to bring forward its
Picture: PA
budget from December.
● 9 September 2010
The government outlines a compromise
plan to wind down Anglo via a two-way
split into an Asset Recovery Bank and a
Funding Bank.
● 24 August 2010
Standard & Poor's cuts Ireland's long-
term rating by one notch to 'AA-', and
assigns the country a negative outlook.
Moody's cut its rating to Aa2 in July.
● 10 August 2009
Anglo Irish Bank wins temporary clear-
ance from the EU for a fresh bailout of
up to €10bn, more than expected.
News 3
Ireland rating
slashed as its
misery grows
▲
EU ECONOMY
IRELAND’S economic turmoil contin-
ued yesterday as Fitch cut its credit
rating.
The news came a day after Moody’s
said it was considering downgrading
Ireland, driving up the nation’s bor-
rowing costs.
The decision heaps further pres-
sure on a government saddled with a
debt pile set to hit a staggering
€155bn (£136bn) this year – equiva-
lent to £100,000 for each of the coun-
try’s 1.5m households.
As well as cutting Ireland to A+
from AA-, Fitch put its rating on a
negative outlook, also pointing to
uncertainty over the country’s waver-
ing economic recovery.
Fitch said: “The downgrade of
Ireland reflects the exceptional and
greater-than-expected fiscal cost asso-
ciated with the government’s recapi-
talisation of the Irish banks,
especially Anglo Irish Bank. The nega-
tive outlook reflects the uncertainty
regarding the timing and strength of
economic recovery and medium-term
fiscal consolidation effort.”
The Irish financial regulator yester-
day warned of more bad news as the
country’s property market continues
to unravel. The government last week
revealed it could cost up to €50bn to
bail out economy.
The UK’s number financial spread
betting provider.*
CITYA.M. 7 OCTOBER 2010
EMEA investment
banking fees lag
peers across globe
BANKING
▲
BY VICTORIA BATES
INVESTMENT banking fees in Europe,
the Middle East and Africa (EMEA)
slipped far behind the rest of the world
over the first three quarters of the year,
with the region’s banks taking a 15.2
per cent cut in fees in comparison to
an 8.7 per cent global increase.
Globally, the fee income pool for
investment banks rose to $57.65bn
(£36.35bn). The biggest proportion of
this came from the Americas, which
saw fees boosted 20.7 per cent to
$28.92bn compared to the first nine
months of 2009, while Asia-Pacific
recorded the fastest fee growth, up by
over a quarter to $8.69bn.
The EMEA region was alone across
the globe in recording a fall, taking
investment banking fees down to
$15.92bn in a tumultuous period
US wades into hedge
fund tussle in Europe
REGULATION
▲
BY HARRY BANKS
US TREASURY secretary Tim Geithner
has warned the French economy min-
ister Christine Lagarde that curbing
foreign hedge funds in Europe could
cause a rift between the continent at
the US government.
In a letter, sent late on Tuesday and
seen by journalists, Geithner increases
pressure on Paris to allow concessions
on new European controls for private
equity and hedge funds.
Officials familiar with US thinking
said France’s position had antagonised
Washington, which is worried that
American hedge funds will be blocked
from Europe, and that the row could
Betfair investors agree IPO
range of up to £14 per share
LEISURE
▲
BY MATTHEW WEST
BETFAIR will announce its plan to
float on the Stock Exchange today
after a meeting of the company’s 700
shareholders voted in favour of an ini-
tial public offering (IPO) at a meeting
last night.
City A.M. understands the price
range will be between £11 and £14 per
share, valuing the company at
between £1.25bn and £1.59bn.
About 10 per cent of the stock will
be floated in the IPO although more
shares could be issued if demand is
which saw the overwhelming debt
burdens on fiscally-challenged
Eurozone states threaten to plunge
the entire area into chaos.
Across all fee revenue streams –
investment banking, bonds, equity,
loans and M&A – JP Morgan pulled in
the most in fees, taking 6.4 per cent of
the global market. In the EMEA
region, Bank of America Merrill
Lynch dominated with 4.9 per cent.
Goldman Sachs was the top-ranked
global M&A adviser, acting on 6.5 per
cent of the world’s deals.
In total, M&A advisory fees rocket-
ed up 37 per cent over the period to
$20.4bn, as improving economic con-
ditions heralded a boom in the num-
ber of deals coming to market. The
only asset class to record a year-on-
year decline was equity capital mar-
kets, where fees dropped 15 per cent
to $14.5bn.
undermine France’s upcoming presi-
dency of the Group of 20 countries.
France joined European diplomats
and lawmakers yesterday in the latest
attempt to break the impasse on the
shape of the new EU rules, entitled
Alternative Investment Fund
Managers Directive.
But negotiations remain difficult
after Lagarde warned last week she
would stand her ground in opposing
part of the law that would make it easy
for foreign funds to work in the EU.
Lagarde believes issuing a 27-coun-
try EU licence to foreign funds would
be a mistake because controls on those
operators are unlikely to be tight.
Others suspect her of taking a swipe at
London, whose fashionable West End
strong enough.
Betfair was launched ten years ago
and allows gamblers to offer odds and
bets to each other via the internet,
eliminating the need for a bookmak-
er.
It now claims to be the largest gam-
bling community in the world. It also
sponsors sporting events, including
horseracing.
But there are concerns the IPO
could be shunned by investors who
suffered losses after the flotation of
Ocado, the online supermarket deliv-
ery service, this year.
Of Betfair’s 700 shareholders about
News 5
BA, AA and
DEUTSCHE MAN JOINS GOVERNMENT TEAM
Iberia name
tie-up routes
▲
AVIATION
BRITISH AIRWAYS, American Airlines,
and Spain’s Iberia unveiled four new
routes and promised passengers
lower prices and flight flexibility as
they launched an $8bn (£5bn) transat-
lantic joint business yesterday.
The trio are strengthening their
existing oneworld alliance ties — but
stopping short of a full financial
merger because of strict US laws that
bar foreign ownership in the airline
industry — as many airlines struggle
to stay airborne in the wake of the
global financial crisis.
However, British Airways chief
executive Willie Walsh said of the
deal: “You are going to witness a new
era of competition. Customers flying
transatlantic have never had so much
choice.”
The four new routes are: New York
ANTHONY ODGERS, a senior member of the corporate restructuring team at Deutsche to Budapest, Chicago to Helsinki,
Bank, has joined the body responsible for looking after the government’s assets, the London to San Diego and Madrid to
Shareholder Executive, as it steps up efforts to find buyers for assets including the Tote, Los Angeles. The new venture’s route
Royal Mail and the Student Loans portfolio. He joined Deutsche Bank in May 2007 as network will cover 433 destinations
@
chief operating officer for telecoms M&A in Europe from Lehman Brothers. in 105 countries.
@
is home to most European hedge
funds.
In his letter, Geithner writes: “A pro-
posal that limits or delays the access of
third country firms to a passport --
while granting EU domiciled man-
agers and funds access to the
European market -- would be discrimi-
natory and contrary to G20 commit-
@
ments.
“We would consider adoption of
such a proposal as unfair and damag-
ing to our shared interest in maintain-
ing an open, global financial system.”
George Osborne, who has argued on
the side of Washington for an EU
licence for foreign funds, also received
a letter from Geithner explaining his
position.
500 are employees. Its other big share-
holders include the private equity
firms Balderton Capital and Index
Ventures and Richard Koch, co-
founder of LEK Consulting.
Japanese bank Softbank bought a
21.5 per cent stake for £13.20 a share
four years ago. The bank is thought to
have objected to a listing at a price
below this level, forcing Betfair to
delay a planned IPO in August. A June
listing was also postponed. MORE NEWS WWW.GANT.CO.UK
Founders Ed Wray and Andrew
Black own 22.5 per cent of the busi-
ONLINE 26 CANADA SQUARE
CANARY WHARF
ness — worth between £281m and www.cityam.com LONDON E14 5AX
TEL 020 7715 7470
£359m at the proposed IPO price.
 Professional Trading
Professional Spread Betting

Tax Free* Trading?

Day traders can now trade with ProSpreads using the same
technology available to city trading institutions and arcades, Apply today
and best of all it’s tax free*!
FREEPHONE
ProSpreads offers Direct Market Access functionality via
one of the fastest trading platforms available, delivering 0800 804 8772
execution often in a millisecond and no re-quotes.
OR
Take advantage of the ultimate trading flexibility with our
unique market ladder where you can join the bid and offer, www.prospreads.com
and even trade inside the spread!

* Spread Betting is not currently subject to UK Capital Gains Tax. However tax laws may change and
individuals should seek independent advice regarding their tax affairs.

Spread betting carries a high risk to your capital, can be very volatile and prices may move rapidly
against you. Only speculate with money you can afford to lose as you may lose more than your original
deposit and be required to make further payments. Spread betting may not be suitable for all customers,
so ensure you fully understand the risks involved and seek independent advice if necessary.
ProSpreads Limited, incorporated in Gibraltar, is a part of the group of companies controlled by London Capital Group Holdings plc, registered number: 05497744, registered
address: 12 Appold Street, London EC2A 2AW. ProSpreads Limited is a company registered in Gibraltar under registered number 91368. Registered address: 2/3b Horse Bar-
rack Lane, Gibraltar. ProSpreads Limited is licensed as a gaming company by the Government of Gibraltar (Gaming Licence No.28) and authorised and regulated by the Financial
Services Commission (No.FSC00824B).
CITYA.M. 7 OCTOBER 2010 Conservative Conference 7

Hague acts to assuage fears

coalition is too pro-Europe
CONSERVATIVE
CONFERENCE
BY DAVID CROW IN BIRMINGHAM
WILLIAM Hague yesterday pledged to
enshrine the sovereignty of the
British Parliament over the European
Union, in a bid to quell fears among
Tory activists that the coalition gov-
ernment is too pro-Europe.
Delegates at the Tory party confer-
Liam Fox said future defence cuts are Labour’s fault in yesterday’s speech Picture: PA
ence gave the foreign secretary a
standing ovation, after he said he
would “reaffirm once and for all the
sovereignty of our ancient parlia-
ment”. Currently, parliamentary sov-
ereignty is only rooted in common
law, but the government has decided
to include a clause in the forthcoming
EU Bill, stating that European law can
only take effect in the UK if parlia-
ment decides that it should.
However, former foreign minister
Chris Bryant dismissed the move as
“posturing”, pointing out that the
announcement will have little or no
impact. All EU law only takes effect
because of the European
Communities Act 1972, which parlia-
ment can amend or repeal at any time.
Even Hague admitted the move
would “not alter the existing order in
relation to EU law” but insisted that it
would “put the matter beyond specu-
lation”.

Carriers still
sore point for
defence cuts
CONSERVATIVE
CONFERENCE
BY DAVID CROW IN BIRMINGHAM
LIAM Fox yesterday confirmed that the
Trident nuclear deterrent would be
replaced, earning him a huge round of
applause at the Tory conference, but
the future of two aircraft carriers
remains unclear.
“The first duty of the government is
defence of the realm. That is why we
will maintain Britain’s nuclear deter-
rent and will go ahead with the tri-
dent replacement programme,” the
defence secretary said.
But Fox warned the government
was approaching the defence spend-
ing review “with unavoidably con-
strained finances”, adding to fears that
at least one of the Navy’s two aircraft
carriers could be scrapped.
The government could scrap both
ships, which are expected to cost some
£2.5bn each to build, but fears that the
impact could prove fatal for Britain’s
ship building industry. Another
option is building just one carrier and
keeping it in a state of “extended readi-
ness”, essentially mothballing it.
Earlier this week, former Prime
Minister Gordon Brown made a rare
intervention in national politics, and
insisted that both aircraft carriers
should be built as planned.
But yesterday Fox responded with a
scathing attack on Labour’s handling
of the defence budget.
He said: “We all know about
Labour’s toxic economic legacy. There
is an unfunded liability in defence of
around £38bn over the next 10 years –
compared to an annual budget of only
£37bn. Fox added that the UK would
pay £46bn on debt interest payments
next year, a sum that could purchase
four aircraft carriers, 300 Chinook hel-
icopters, 13,000 troops, 10 destroyers,
50 cargo planes, and pay for a com-
plete refurbishment of forces’ living
quarters.
Later, in his first conference speech
as Prime Minister, David Cameron said
the defence review would “match our
commitments with the resources
we’ve got”, and warned of “big
changes” for Britain’s military.
Resources for the Afghanistan war
will be maintained or improved, but
the Navy and Royal Air Force are brac-
ing themselves for swingeing cuts.

Pilot sports events established to

boost participation among young
including Olympic and Paralympic
▲

CONSERVATIVE CONFERENCE
SCHOOLS from nine areas in England
will participate in a pilot sports event
next year as part of efforts to ensure
the 2012 Olympics gets more young-
sters playing competitive games.
Announcing the event at the Tory
conference, culture secretary Jeremy
Hunt said only around one in five
children regularly plays sport against
other schools.
“We are seeking a lasting legacy in
the numbers playing competitive
sport,” Hunt told delegates.
The Schools Olympics pilot event
will start early in 2011 and allow chil-
dren to compete in a range of sports
disciplines. It will culminate in coun-
ty-level events next summer, which
will help finalise plans for Olympic
year 2012.
The 2012 event will end with a
national competition in the Olympic
Park in London, featuring opening
and closing ceremonies and medals.
Meanwhile, Hunt will today unveil
plans for the government’s long-term
ambition for the Olympic park once
the games have ended.
Last week footballers from West
Ham visited Downing Street to pres-
ent the club’s bid to run the Olympic
stadium and convert it into a 60,000
seater arena for community use.
 8 Consumer News CITYA.M. 7 OCTOBER 2010

Marston’s is
Prada mulls a boosted by
Hong Kong pub grub

listing launch
LEISURE

▲
PUBS and brewing group Marston’s
said earnings for the year to 2 October
were in line with its expectations, as
increasing food sales boosted rev-
enues at its managed pubs division.
Like-for-like sales at the managed
▲

RETAIL
BY HARRY BANKS
ITALIAN fashion house Prada is
studying an initial public offering
offering at the time. Prada may fetch
a valuation in excess of Louis Vuitton
Moet Hennessy SA’s trading multi-
ples, sources told Bloomberg.
The world’s largest maker of luxury
pubs unit were 1.7 per cent ahead of
last year, as food sales, which account
for about 40 per cent of total sales,
Chief executive Ken McMeikan says sales have been resilient despite the recent recession grew 2.5 per cent.
Drinks sales climbed 1.4 per cent.

Greggs in slim sales rise

(IPO) in Hong Kong for the first half of goods has an enterprise value of 11.65 The company, which like other pub
2011. times 2010 earnings before interest, companies has made a push to
Prada, which has scrapped an IPO tax, depreciation and amortisation. increase higher margin food sales,
four times in the past ten years, may Prada’s Ebitda more than doubled said like-for-like profit at its tenanted

thanks to bacon rolls

raise more money through a primary
listing in Hong Kong than in Milan
because individual investors are more
active in Asia, according to experts.
Prada, which owns top-selling
brands Miu Miu and Church’s, may
hire banks as soon as next month, a
to €225.2m (£197.3m) in the six
months to 31 July.
Revenue climbed 29 per cent to
€936.5m, led by a 47 per cent gain in
Asia. Prada’s debt was €485m at the
end of 2009, the company said in
March.
▲
pubs, which are owned by pub compa-
nies but run by publicans, fell 3.7 per
cent year-on-year.
This was better than the 4.5 per
cent fall reported at interim results in
May.
RETAIL group’s best-selling sandwich line.

source told Bloomberg.
A Prada spokesman said the Prada
company is continuing to monitor
market conditions.
Prada is controlled by chief exexcu-
tive Patrizio Bertelli, his wife Miuccia
Prada and her family.
The company ditched plans to list
in 2008 because of adverse market
conditions. Prada had hired Intesa
Sanpaolo SpA, UniCredit SpA and
Goldman Sachs Group to manage the
Prada was founded by head design-
er Miuccia Prada’s grandfather Mario
Prada in 1913.
FAST FACTS | PRADA
● The company was founded in Milan in 1913.
● It still operates from its first outlet in Milan’s
19th-century Galleria shopping.
● Prada also owns the Miu Miu, Car Shoe and
Church’s brands.
It is now extending its breakfast ANALYSIS l Marston’s
BY JOHN DUNNE
range with new products such as 102 p 97.60
HIGH street bakery chain Greggs yes- croissants, pain au chocolate and por- 6 Oct
terday reported a narrow rise in third- ridge.
quarter sales thanks to its breakfast Chief executive Ken McMeikan said 98
range. the company was proving resilient.:
The group, which has 1,451 stores “As we expected, the trading environ-
and serves six million customers ment has been tough and is likely to 94
every week, said like-for-like sales remain so, with consumer spending
increased 0.2 per cent for the 13 continuing to be constrained and
weeks to 2 October. inflationary pressures building for
Greggs said its bacon roll was the next year,” he said. 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

Future City after-work debates

every night this week
s "ANKERSAND"ONUSES7HATHASTHE#ITYEVERDONEFOR,ONDON
s )S,ONDONGROWINGTOOBIGTOOFAST
s ,ONDONANDTHE/LYMPICSnPREDICTINGTHELEGACY
s )S,ONDONMISSINGOUTONNEWTECHNOLOGIES
s 7ILL,ONDONSTILLBEAMAJORGLOBALPLAYERIN
3PEAKERSINCLUDE3IR4ERRY&ARRELL!DAM(ART
$AVIS
3TEVEN"AYLEY0ETER9ORK2UTH-ACKENZIE

/CTOBER\PM
PMBAROPENPM \aaCONCESSIONS

/CTOBER "RITISH,IBRARY
"OOKNOWWWWBLUKSTORYOmONDON
WWWLONDONGOVUKSTORY
CITYA.M. 7 OCTOBER 2010
2.9% 266,000
sq feet
like-for like increase of new floorspace
opened
in sales in second
quarter
25% 520
rise in online sales new jobs planned
J Sainsbury chief executive Justin King is rapidly expanding store space
Non-food lifts
J Sainsbury
▲
RETAIL
BY JOHN DUNNE
J SAINSBURY yesterday reported a
sales rise in the second quarter as it
pinned its hopes on catching Asda by
rapidly expanding store space.
The UK’s third largest chain behind
Tesco and Asda, said non-food items
were fuelling its performance.
Sainsbury’s saw a 2.9 per cent like-
for-like increase in sales in the period,
which also saw the opening of its
largest ever store in Kent. And a total
of 266,000 sq feet of new floorspace
was opened in the period.
Sainsbury’s said its non-food busi-
ness was growing at three times the
rate of food, with its Tu clothing rage
“leading the charge” in sales. Its
online sales were also performing
well, increasing by 25 per cent in the
period.
Chief executive Justin King said the
boost in floorspace at the chain
Thorntons profit slumps with
rising cocoa price taking its toll
▲
RETAIL
CHOCOLATE maker and seller
Thorntons posted a 2.4 per cent fall in
full-year profit as own store sales fell
and said it expected market condi-
tions to remain tough.
The firm, which issued a profit
warning in May, said yesterday it
made a profit before tax of £6.1m in
the year to 26 June. That compares
with analysts’ consensus forecast of
£6.5m.
The group, which trades from
around 600 stores, said overall rev-
enue was flat at £214.6m.
Thorntons said its key challenge
continues to be the own stores chan-
nel, which saw a 3.6 per cent fall in
Consumer News 9
Bullish spending means shares are a hold
ANALYSIS l Sainsbury
S
AINSBURY’S was a little more stores and with like-for -like sales up
low key about its sales rise 2.9 per cent and online sales rising, 400 p 387.10
and consumer sentiment the company’s data is far from 6 Oct
than Tesco which posted bleak. Sam Hart at Charles Stanley 380
sales figures earlier in the week. said the shares had been prospering
With Sir Terry Leahy signing off but expectations should now be
with his last set of results it is hard-
ly surprising that Tesco has stolen
reined in. In a note he said: “We
think the valuation is now starting
360
some of Sainsbury’s thunder.
However, Sainsbury’s chief execu-
to look slightly rich and anticipate a
period of share price consolidation.
340
tive Justin King echoed Sir Terry’s “Our recommendation is down- 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
view that consumer confidence was graded from ‘Accumulate’ to ‘Hold’.
far from falling off a cliff. “We see better value in Tesco
Sainsbury’s has added more than (‘Accumulate’) and Morrison
266,000 sq ft to its retail space with
the opening of three new super-
(‘Accumulate’) at present.”
The shares are “hold” for now.
BOTTOMLINE
Analysis by John Dunne
would help it to outstrip rival Asda,
despite its rival recently acquiring the
Netto chain.
King said Sainsbury’s was “a good
way ahead” of its rivals with its sales
lift.
He said the chain was performing
well in a “challenging consumer cli-
mate”, and that he was not expecting
any significant impact when public
spending cuts kick-in because people
had already prepared themselves and
changed their spending habits where
necessary.
“Consumers are already dialled in
to what is happening. They have been
for a long time now,” King said.
He said a reduction in petrol prices
had given some relief to cash-strapped
families and put more money back in
their pockets. Sainsbury’s said its
back to school clothes were flying off
the shelves while fair trade goods
were also on the march with growth
of 25 per cent for the second quarter.
sales. It also warned of the impact of
spiralling cocoa prices causing possi-
ble price rises.
“We have strengthened our senior
retail management team and we
believe that this, together with exten-
sive product innovation and changes
to the promotional and marketing
programmes, should have a positive
impact on trading in the lead up to
Christmas,” it said in a statement.
The firm said trading since the
year-end had been in line with inter-
nal expectations. Thorntons, which
cut net debt to £26m during the year,
maintained its total dividend payout
at 6.05p.
The traditional chocolate maker
was founded 99 years ago.
 The Capitalist
10
CITY GYM
LAUNCHES
FAT BANKER
CHALLENGE
HOT ON the heels of last week’s much-
lauded “Best Dressed Banker” award, and
The Capitalist’s own rundown of the top ten
hunkiest gents and loveliest ladies in the
City, published in the summer, comes
another, err, extra-curricular competition
for London’s financiers.
Matt Roberts, personal trainer to the
stars, is on a mission to help the City get
healthier and into shape – which explains
why his personal training club on
Cornhill is offering a fitness package
worth £1,600 free to two of the fattest
bankers in the business.
The challenge? Said chubby bankers
must go head to head against each other
to see who can get the best results in eight
weeks, with any sponsorship money from
their efforts going to charity.
Two hard-core personal training ses-
sions a week will be supplemented by two
compulsory workouts off our corpulent
friends’ own backs, plus (cue wagging
accusatory finger) a “strict dietary
regime”.
That’s put paid to any more steak-and-
red wine lunches at Gaucho, then.
LEGAL EAGLES
Much excitement over at law firm Clifford
Chance, which began voting earlier this
week on a successor to current senior
partner Stuart Popham, who’s stepping
down at the end of the year.
The three candidates who’ve tossed
their names into the hat are tax partner
Jonathan Elman, banking and finance
partner Malcolm Sweeting and Daniela
Weber Rey, a German partner – who
would be the first woman ever to hold the
hallowed position within the firm’s
ranks.
But while there are still over two weeks
of voting to go, The Capitalist hears early
indications from friends at the firm that
the historic election of a lady to the top
job is unlikely to come to fruition.
Apparently, the smart money’s on
Sweeting – who ticks all the boxes as a
jovial chap who also works in the sought-
after area of finance…
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Our two
chubby con-
testants will
battle it out
to achieve
the most
extreme
results over
eight weeks”
Matt Roberts, person-
al trainer to the stars,
is on a mission to help
TWIST IN THE TALE
Much humming and hah-ing in the City
the City get into shape yesterday over a peculiar twist in the tale
of Liverpool FC’s sale to New England
Picture: GETTY Ventures, owner of the Boston Red Sox
baseball team.
Liverpool chairman Martin Broughton
is being advised on the sale by Barclays
Capital, headed by Bob Diamond – who is
himself, of course, an avowed Red Sox
fanatic. How very convenient.
FESTIVAL VIBE
A date for the diaries of musi-
cally-inclined City types: 22
A fine filly at Newmarket Picture: Tattersalls.com October, when poverty charity
Oxfam is bringing its month-
long “Oxjam” festival of music to
HORSING AROUND the City. Leadenhall Market is
A sterling show of loyalty from Irish racing going to be hosting the main
billionaire John Magnier over the past few rock and acoustic stage, featur-
days at the Tattersalls October yearling sale ing 35 London and South East
at Newmarket. bands over 12 hours, includ-
As a crowd of racing and business ing The Roolettes, The
moguls – including Magnier’s racing Obscuritones, Zen Motel,
investment partners JP McManus and Cavilry and The Weller
Michael Tabor and Eddie Stobart group Collective.
chief executive Andrew Tinkler – gathered The organisers are hoping to
to coo over the finest fillies and colts, it raise £4,000 on the night – which
was Magnier who put his money where his should inspire enthusiasts to get down
mouth is. there and boogie.
After stumping up £1.2m for one filly
on Tuesday – a three-year record high
price for a yearling sale – the Irish tycoon
yesterday added another new filly to his
SUM TOTAL
So, Henry Kravis – one of the founders of
stable for £900,000. private equity giant Kohlberg, Kravis
Both young’uns were bred from Roberts – has doled out a stonking
Magnier’s own horse Galileo, so he’s keep- $100m (£63m) to his former university,
ing things happily in the family. the Columbia Business School, to put
CITYA.M. 7 OCTOBER 2010
Henry Kravis donated $100m Picture: REUTERS
towards an all-singing, all-dancing new
campus, one of whose buildings will be
named after him.
That hefty sum matches a donation made
by Steve Schwarzman – the Blackstone
Group founder – to the New York Public
Library a couple of years ago.
Next up on the tit-for-tat list for Kravis –
a kindly corporate biography, along the
same vein as the newly-released “King of
Capital”, which has just been published
about Blackstone and aims (according to
early reviews) to show that the firm was a
disciplined and risk-aware investor in the
crisis.
KKR’s contribution to literary history, by
contrast, is so far limited to the best-seller
about the firm’s 1989 takeover of RJR
Nabisco, with the not-so-complimentary
title “Barbarians at the Gate”.
LORD OF THE DANCE
Speaking of the new Blackstone book,
there have been a few gems to come
out of Kings of Capital up to now.
We all knew that Steve
Schwarzman was a colourful char-
acter, of course – he did, after all,
recently cause a furore by
comparing President
Obama’s Wall Street
tax reforms to the Nazi
invasion of Poland. But
did anyone ever expect
that the private equity mogul was a
lover of the ballet?
According to the book,
Schwarzman started up a club
while he was in his first year at Yale,
the Davenport Ballet Society (named after
his residential college) – arranging for
members to see a dress rehearsal of the
Nutcracker by the New York City Ballet
and organising a dance festival. One
acquaintance describes Schwarzman’s
attachment to the ballet as “an excuse to
meet girls”. Ever the shrewd operator, eh?
CITYA.M. 7 OCTOBER 2010 News 11

GE closes $4.6bn of deals

to build up its business...
“Dresser has a global franchise and executive Jeff Immelt has said the
▲

BUSINESS
BY HARRY BANKS
GENERAL ELECTRIC (GE) yesterday
made a pair of major acquisitions
despite being spurned in a third
attempt to buy a UK oil firm, as the
largest US conglomerate builds up its
energy and finance arms.
GE reached a $3bn (£1.9bn) deal to
buy Dresser, a maker of gas engines
used by oil and gas production firms.
brand with 60 per cent of sales outside
of North America, which will be accel-
erated by GE’s global footprint,” said
John Krenicki, a GE vice chairman of
its energy infrastructure division.
Its GE Capital finance arm, which
had been its weakest point through
the recession had bought $1.6bn of
retail credit assets from Citigroup.
GE has been an active acquirer over
most of the past decade, and chief
company will focus on deals sized at
$1bn to $3bn in areas that comple-
ment its core industrial and finance
businesses. The company is in the
process of selling its NBC Universal
media business to the biggest US cable
operator Comcast.
The payoff of the company’s latest
round of deals is yet to be seen, said
senior portfolio manager Peter Klein at
Fifth Third Asset Management. General Electric chief executive and chairman Jeffrey Immelt (centre) Picture: GETTY

... as it’s rebuffed in $1.2bn

bid for oil firm Wellstream
This follows a period when GE was
▲

ENERGY
BY HARRY BANKS
GENERAL ELECTRIC (GE) was spurned
in one of its largest recent efforts to
build up its industrial businesses,
when British oilfield services
Wellstream rejected a $1.2bn (£755m)
takeover approach.
News of Wellstream’s rejection
came on the same day GE said it
would buy Dresser, a maker of gas
engines used to power oil and natural
gas production equipment, and retail
credit assets from Citigroup.
The US conglomerate’s offer for
Wellstream comes at a time when GE
officials said the firm could have
$30bn available for acquisitions over
the next few years.
more active in selling operations,
including its NBC Universal media
unit and parts of its finance opera-
tion.
Wellstream would not comment
on GE’s statement that it had made a
proposal at 750p per share, which led
some investors to conclude the oil
services firm may be talking to other
suitors.
Fairfield, Connecticut-based GE,
which also owns Vetco Gray, a maker
of equipment used in deep-sea oil and
gas production, said that it would
keep its options open.
“GE is disciplined in its acquisi-
tions, and as such, there can be no
certainty that it will take any further
action,” the company said.

Serious
about an MBA?
Choose Wisely.

you know that

Did you that not all MBAs offer
offer the same quality? Invest
Invest yyour
our time and
money wisely.
money wisely. Choose a course
course accredited
accredited by the Association
Association of MBAs,
MBAs, the
world ’s impar
world’s tial authority on business education.
impartial educa i

DO YOUR
YOUR RESEARCH ATT OUR
RESEARCH A
Accredited
Accredited MBA Fair
Fair
Saturday
Saturday 16 October 2010
Grange
Grange City Hotel, Tower
Tower Hill,
London, EC3N 2BQ
Opening hours:
hours: 2 pm to 5 pm

Register
Register online for
for FREE entry
entr y www.mbaworld.com/mbafair
www
w.mba
. world.com/mbafair

For
For more
more information
information about
about choosing an MBA, funding and accreditation,
accreditation,
please visit our website
website www
www.mbaworld.com
w.m
.mba
. world.com
CITYA.M. 7 OCTOBER 2010
All in the family: (l to r) John Wienberg, Sidney Weinberg Jr, Sidney Wienberg Picture: GETTY
EasyJet ups
forecast on
higher traffic
▲
AVIATION
BY EMMA SADOWSKI
EASYJET’S shares, soared yesterday as
the budget airline boosted its 2010
profit expectations after reporting
strong September traffic figures.
The airline’s senior management,
including newly appointed chief exec-
utive Carolyn McCall, have increased
pre-tax profit expectations for the full
year, despite recent problems with
the airline’s punctuality, disruption
from the Icelandic volcano and an
ongoing bitter dispute with founder
Sir Stelios Haji-Ioannou.
Anticipations are that profits
before tax for the year to the end of
September 2010 will come in slightly
above £150m. The airline had previ-
ously estimated its profit would come
in between £100m to £150m.
McCall said yesterday that easyJet’s
commercial performance remained
robust and consequently total rev-
enue per seat is expected to rise by six
per cent during the period.
“This robust financial performance
in a tough trading environment is a
tribute to easyJet’s unique blend of
the lowest prices to the most conven-
ient airports,” said McCall.
The airline expects that the finan-
Arden chief makes a premature exit
after Fairfax takeover plan stumbles
▲
FINANCIAL SERVICES
BY DAVID HELLIER
STOCKBROKER Arden Partners said
yesterday that its new chief executive
officer Jeremy Grime is leaving the
company after only four weeks in
charge.
It is understood that Grime, who
was promoted internally from the
group’s financials team, wanted to
pursue a merger with Fairfax, the
boutique investment bank run by
Stefan Allesch-Taylor. But his plan was
scuppered when he could not take
the rest of the board with him and in
the end the strategic differences
appeared too great for him to carry
on in charge.
Arden’s statement to the stock
cial impact over the period it took
from the closure of European air-
space during the eruption of the
Eyjafjallajokull volcano will come
down from £65m to £60m.
Last month easyJet flew 4.7m pas-
sengers, marking an eight per cent
rise on September last year when
4.4m people used its services.
The rise is in conjunction with
annual rising passenger numbers,
which the airline said grew by 7.9 per
cent to 48.7m over the last 12 months.
The airline also filled almost 90 per
cent of available seats on its flights,
marking a rise from 2009 when it filled
88.1 per cent of its flights. The good
news caused its shares to rise 12 per
cent to 433.30p – a two-month high.
ANALYSIS l easyJet 433.30
440 p
6 Oct
420
400
380
360
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
exchange omits any mention of the
strategic differences and advisers said
they were unable to comment on the
reasons behind the premature depar-
ture.
Grime was named as CEO desig-
nate in June but he only formally
took up the role last month.
He had been a highly rated analyst
in Arden’s financial services team,
having worked previously for Collins
Stewart and Altium. Some ques-
tioned his appointment at the time
because of his lack of management
experience.
He will be replaced on an interim
basis by Jonathan Keeling who moved
out of the job and became deputy
chairman to order to focus on grow-
ing Arden’s Indian business.
Goldman’s Weinberg dies
▲
OBITUARY
BY VICTORIA BATES
SIDNEY Weinberg Jr, a scion of the
banking family whose members led
Goldman Sachs for the best part of
the last century, has died aged 87.
Weinberg Jr joined the firm in
1965, moving up to lead its invest-
ment banking division for ten years
between 1978 and 1988. He had been
FACEBOOK BOWS TO PRESSURE ON PRIVACY
FACEBOOK will give users the ability to download all the information they have
uploaded to the site and make it easier to see how individual applications are using per-
sonal information, chief executive Mark Zuckerberg said yesterday, answering two main
criticisms that have dogged the site for years. The feature, called “Download your
Information,” will give users a “.zip file” with all the data they have put up on the site.
Arden Partners in September
warned that it was unlikely to meet
earnings expectations for the year
ending 31 October, because of chal-
lenging stockmarket conditions.
Analysts had been expecting fiscal-
year pre-tax profit of around £1.6m.
Since then Arden has raised
around £120m for two companies,
iEnergizer and KSK.
Keeling is determined to make a
thorough review of the business but
he has told friends that he doesn’t
want the top job again long-term.
He is still committed to growing
the group’s Indian business.
Fairfax was earlier this year the
subject of speculation about a tie-up
with Astaire. However, it never con-
firmed talks had taken place.
a senior director since 1999.
He was also deeply committed to
philanthropy, having set up his own
charity – the Sidney J. Weinberg Jr
Foundation – in 1971 to support the
arts, children and youth projects,
education, environmental causes and
health organisations.
His father, Sidney J. Weinberg, had
previously started work at Goldman
in 1907 at just 16, working his way up
Picture: REUTERS
Accenture to buy Ariba’s
assets in $51m cash deal
▲
TECHNOLOYG
TECHNOLOGY outsourcing and con-
sulting firm Accenture said it would
buy Ariba consulting services and
BPO assets for $51m in cash.
Ariba, which provides procure-
ment software and consulting servic-
es, said the businesses will account
for about $40m of 2010 revenue and
seven cents a share in adjusted earn-
ings, it said in a regulatory filing.
Accenture, which will absorb 160
employees from Ariba, will enter into
a four-year non-competition agree-
ment with the latter.
The deal is expected to close in
Ariba’s first quarter of fiscal 2011,
ending 31 December 2010, the com-
panies said in a statement.
News 13
from the position of janitor’s assis-
tant to become chief executive of the
firm by 1930. He led the bank for
nearly four decades until his death in
1969, during which time his power
and influence earned him the nick-
name “Mr Wall Street”.
Weinberg Jr’s brother, John
Weinberg, was also formerly a chief
executive of the bank between 1976
and 1990. He died in 2006.
Regulators
may block
Rio venture
▲
MINING
RIO TINTO and BHP Billiton shares
gained more than three per cent each
yesterday after Rio insisted that its
$116bn (£73bn) joint venture plans
are not close to collapse.
The FTSE 100 firm warned however
that competition watchdogs may
scupper more than a years’ worth of
efforts for a joint iron ore production
plant in Western Australia.
The company said competition bod-
ies had recently “indicate[d] potential
obstacles to achieving clearance for
the joint venture”. The watchdog in
Australia has delayed its final ruling.
A spokesperson for the European
Commission, which must also
approve the deal, said yesterday it
expects to conclude its preliminary
investigation soon. If the Commission
finds that the venture poses a threat
to competition, it can begin a lengthy
full investigation and ultimately
block the deal.
Rio also mentioned the Japanese
and Korean regulators in its state-
ment late on Monday, but neither was
available for comment yesterday.
BHP Billiton’s spokesperson said
the firm was not likely to follow suit
with a statement to the stock market,
but said: “The joint venture continues
to be assessed by the regulators.”
Numis Securities said in a note:
“[T]he ongoing delays probably mean
that if the regulators don’t kill the
deal then Rio’s shareholders might.”
Shares of Dublin, Ireland-based
Accenture were trading almost flat at
$45.19 yesterday morning on the
New York Stock Exchange.
Ariba’s stock was down as much as
4 percent at $18.92 on Nasdaq.
At their Tuesday close of $19.65,
shares of the Sunnyvale, California-
based Ariba, which have climbed con-
sistently over the last couple of years,
were at the highest in more than six
years.
The company press release sug-
gests “approximately 160 Ariba
employees are expected to join
Accenture upon the closing of the
transaction.”
The deal is not yet closed, but
Ariba forecasts closing by the end of
the December quarter.
 14 News CITYA.M. 7 OCTOBER 2010

Autonomy shares rocked

by cut in profits forecast
eight-month low of 1,464p, the largest where in the neighbourhood of six per

▲
TECHNOLOGY
BY HARRY BANKS
SOFTWARE firm Autonomy said it
would cut its full-year revenue guid-
ance by about three per cent after
weaker-than-expected demand, send-
ing its stock sharply lower.
Shares in the group, whose mean-
ing-based search software is used by
multinationals and governments,
Autonomy boss Mike Lynch stunned the market with yesterday’s warning Picture: BBC plunged as much as 21 per cent to an
FTSE 100 faller, after a trading update
yesterday.
The stock closed at 1,551p, a fall of
16 per cent.
Autonomy said it expected full-year
revenue growth of about 17 per cent
and said its third quarter would meet
but not beat its own expectations.
Analysts had pencilled in full-year
growth of about 21 per cent, according
to a Thomson Reuters poll.
Chief executive Mike Lynch blamed
customer volatility due to the current
macroeconomic situation for a cut in
the company’s revenue forecast of
three per cent.
Analyst Bob Liao at Canaccord
Genuity, who rates the firm a “hold”,
said Autonomy was expected to
rebound after one-off events clouded
the second quarter, when the group’s
margin slipped.
“Things have not been coming
cent in terms of earnings, and that
will extrapolate into 2011 in a higher
percentage downgrade.”
Goldman Sachs removed the com-
pany from its “conviction buy” list, but
retained its “buy” rating, saying it
believed the stock would be in the
“penalty box” in the short to medium
term.
“Apart from M&A support and
prospects of an accretive acquisition,
we believe predictability of growth has
become more uncertain in the short
term,” Goldman said.
ANALYSIS l Autonomy
1950 p 1,551.00
6 Oct
1850
1750

Great Offers together as expected,” he said. “It

throws into question its longer-term
growth potential. I’m guessing the
1650

1550
downgrade to consensus will be some- 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

The Micro and

Save
Something The Ice Ball
Anophthalmic
Children’s Society

£50 for everyone Buy a VAIO laptop* & get

We would be delighted if you could join us for an evening of
enchantment and entertainment at The Brewery (Chiswell Street,
London EC1Y 4SD) on Saturday 6th November.
Free
worldwide
Microsoft Office
This year’s MACS Ice Ball will raise
insurance
Home & Student
awareness and much-needed funds
for 12 months
2010 worth £109.99 for children with a very rare eye
Notebook Bag & a condition. MACS, the Micro and
VPC-EE2M1E/WI - Dual Core Performance Mouse worth £14.99 Anophthalmic Children’s Society, was
Efficient everyday computing with AMD Vision founded by a group of parents whose
Processor, 500GB hard drive & 4GB memory
Save children were born with no eyes or
very small eyes. It’s a condition so rare that it stumps many doctors.
£65
was £599.99 now £549.99 This year’s MACS Ice Ball is set to be our biggest ever fundraising
Anti-Virus software with 3 event, with confirmed guests including Oliver star Jodie Prenger,
user licence worth £19.99 a patron of our charity. The black-tie event, hosted by an Ice Queen,
VPC-EE2S1E/BQ -Triple Core Performance
will start with a champagne reception followed by a sumptuous
High performance computing with
AMD Vision Ultimate - AMD PhenomTM
II Triple-Core Processor
for Only £79.99
* Qualifying Range : EE2M1E/WI, EE2S1E/BQ, & EE2E1/E Laptops only.
three-course dinner, live entertainment and a silent auction.
Get your ticket now at a discounted price of £75 per
Free
worldwide
Ask in store for further details

Your Casual Daily Partner

person if you quote the code MACS07 to 0800 168 8088.
Or simply complete and return the form below.
insurance
for 12 months
Save Efficient everyday computing with
AMD Vision - Dual Core Processor,
www.macs-ball.org.uk
320GB hard drive & 3GB DDR3
£50 Memory
Save Name:
VPC-EE2E1/E
£35
Address:
was £649.99 now £599. 99 was £514.99 now £479.99 Postcode:
Tel no:
Email:
Hurry ! All offers must end Sunday 10th October 2010 By giving MACS your email address, you are happy for us to contact you. You can unsubscribe anytime.

I would like £
tickets to the MACS Ice Ball (£75 each)
Sony Centre
I would like tables for 10 for the MACS Ice Ball £
22-24 Tottenham Court Road
I would like to make a donation to MACS for £
London W1T 1BP
Grand total: £
0845 634 0350 I enclose a cheque made payable to MACS

Or My credit card details are: Mastercard Amex Mastro Visa Delta

Card Number:
Security
Instore, online, Collection or delivery. Card No:

http://tottenhamcourtrd.sony.co.uk Start Date / Expiry Date / Issue number (where applicable)

‘Sony’, ‘make.believe’, ‘VAIO’, and their logos are registered trademarks of Sony Corporation. All other trademarks are property of their respective owners. All rights
reserved. All prices correct at time of going to press E.& O.E. All pictures for illustration purposes only. Promotion ends 10.10.2010. Operated by: Shasonic Centres Ltd.
Signature: Date: / /

Please return this form to: MACS, PO Box 92, Holyhead LL65 9AW
Micro & Anophthalmic Childrens Society. Registered Charity number 1040074
CITYA.M. 7 OCTOBER 2010 News 15

CITY VIEWS: SHOULD BANKS TONE DOWN THEIR BONUSES WHILE THE
GOVERNMENT IS CUTTING PUBLIC SECTOR PAY?
CARL PEREIRA | CS TRAVEL
Interviews by Marion Dakers
Pay at FTSE
“They shouldn’t be entitled to a bonus at all. The rest of us are happy with just
getting wages, never mind a bonus for simply doing our job. I don’t think bigger
bonuses are a sign of an improving economy that we should celebrate –
firms grows
it’s a sign a banker’s gamble has paid off.” RECRUITMENT adding 1.6 per cent.

▲
BY MARION DAKERS
PAY PACKETS in the private sector are
JANE CASSIDY | CHARTERED ACCOUNTANT growing at a faster rate than those in
the public sector for the first time since
March 2009, said research out today.
“I think banks bring a lot to this country, not least the 50 per cent tax on their Workers in for-profit companies
saw their take-home pay increase at
bonuses. They are not all to blame for the downturn, and banks are the back- an annual rate of 1.4 per cent in
bone of the country’s economy. It’s also unfair to come down on the indi- September. Pay rises are still lagging
far behind inflation, which is push-
viduals.” ing up the cost of consumer goods by
3.1 per cent a year.
However, public sector workers
fared even worse, with the average
JEREMY SCOTT | JMS FINANCIAL pay packet growing by an annual rate
of 1.3 per cent last month, according
to figures from 600 public bodies
“Yes, I think they should reduce their bonuses. It seems like the right thing to compiled by payment specialist
VocaLink.
do, particularly when the banks themselves are still in trouble. It would be a Pay growth has improved slightly
wise move too, given public opinion on flashing lots of cash at the over the year, with pay hikes at FTSE
350 companies growing by an average
moment. I would think twice about taking a bonus.” of 0.9 per cent over the year to
Private companies have managed to
bounce back more quickly from the
slump in May and June this year,
adding 0.9 percentage points to the
average wage growth compared to 0.2
percentage points within public bodies.
Douglas McWilliams, chief execu-
tive of the Centre for Economics and
Business Reform said: “The sluggish-
ness of annual earnings and pay
growth is largely the result of slack-
ness in the labour market. The latest
data released by the Office for
National Statistics has revealed that
the claimant count measure of unem-
ployment increased in August for the
first time since January.”
Marion King, chief executive officer
at VocaLink, added: “With the emer-
gency Budget of 22 June announcing
a two-year public sector wage freeze
for those earning above £21,000, pri-
vate sector wage growth is likely to
continue outstripping public sector

@
September, and public sector rises wage growth from 2011 onwards.”

NEWS | IN BRIEF
Card fraud at a 10-year low
Credit card fraud losses in the first six
months of the year plunged to their low-
est level for 10 years, at just £187m, the
banking industry said yesterday. Online
banking fraud was 36 per cent lower
than in the first half of last year, at
£25m, said the UK Cards Association.
Phone banking fraud was up nine per
Toyota’s Prius sales take a tumble
Japanese sales of the Toyota Prius have
fallen for the first time in almost a year-
and-a-half after a government subsidy for
buying more eco-friendly cars ended,
industry figures suggest. The hybrid
motor is Japan’s most popular car, with
27,249 sold in September, according to
the Japan Automobile Dealers Association.

@
cent to £6m, however cheque fraud loss- However, this was 14 per cent lower than
es fell 13 per cent to £14m. the same month a year ago.

MORE NEWS
ONLINE
www.cityam.com
“It’s not about
the money.
It’s about the game!”
– Gordon Gekko

To celebrate our 1 point spreads on the Wall St index and the release
of WALL STREET Money Never Sleeps, we’re giving you the chance
to win* fantastic prizes including iPads and iPod touches.

Play our Wall Street Challenge game at

cityindexwallstreet.co.uk



 
 








  

 In cinemas Wednesday 6th October
Spread betting can result in losses that exceed your initial deposit.
1 point spreads available during our market hours only.
Spreads lowered on our rolling and daily future spread bet markets.
 
 





  
 


  

 
 

 18 News
Growth in UK
boosts Robert
Walters’ fees
▲
RECRUITMENT
BY EMMA SADOWSKI
GLOBAL recruiter Robert Walters has
seen a spike in fees during the third
quarter, driven by strong growth in
the UK and Asia.
Robert Walters said that gross prof-
it for the three months to the end of
September soared 65 per cent to
£42.5m. The rise is against a low com-
parison last year when fees came to
£25.8m as the recession took its toll.
Fees derived from the group’s UK
business improved by almost 50 per
cent to £12.6m.
Chief executive Robert Walters
said: “Trading in the UK has been pos-
itive, in spite of continued economic
uncertainty and our offices in Europe
have done well to achieve a healthy
increase in net fee income during the
quieter summer period.”
The group’s Asia Pacific business
remained the strongest performer
after delivering a 92 per cent hike in
fees. The rise sees this unit’s fees rise
to £21.5m from the £11.2m it posted
the year before.
Meanwhile, the group’s European
arm, which has lagged behind the
rest of the regions, posted a 33 per
cent growth compared to 2009. The
Americas and South Africa, the small-
est region for Robert Walters, saw fees
rise by 61 per cent to £900,000.
Robert Walters, which has Kevin
Gibson as its managing director, also
bolstered its global footprint after
opening new offices in Germany and
South Korea and adding 408 new
staff members. “We have taken steps
to maximise opportunities where we
see strong growth,” said Walters.
ANALYSIS l Robert Walters
300 p 291.75
6 Oct
260
220
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
CITYA.M. 7 OCTOBER 2010
Hays boss sees
Robert Walters
managing direc-
tor Kevin Gibson
oversaw strong
growth this year
Picture: REUTERS
a £200,000
cut in annual pay
▲
RECRUITMENT
BY EMMA SADOWSKI
ALISTAIR Cox, chief executive of
recruiter Hays, saw his pay shrink by
ANALYST VIEWS: WHAT DO YOU THINK OF £200,000 to take home £1.56m last
year, according to the company’s
ROBERT WALTERS’ RESULTS? Interviews by Emma Sadowski annual report.
The report that showed Cox took
home a base salary of £630,000 and
KEAN MARDEN | ROYAL BANK OF SCOTLAND received a cash bonus of £422,000
“
during that time.
Similarly, finance director Paul
At the divisional level, Asia Pacific was softer than expected – accord- Venables took a £200,000 pay hit after
ing to the company this was driven by financial services hiring rather than a gen- his salary dropped from £1.31m in
”
eral loss of momentum around the Australian general election – and the UK’s 2009 to £1.11m in 2010.
stronger performance. The report said that Venables’ base
salary came to £454,000 and he also
received a cash bonus, worth
CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE £301,000.
“
Both Cox and Venables will see
their respective salaries frozen for
Robert Walters delivered a stellar set of results although we suspect another year due to the uncertainty
this is against very easy comparatives. All regions saw double-digit growth in the of the economic climate.
”
quarter with Asia Pacific showing the strongest increase while the UK was up 49 Hays’ international fees fell by
per cent. However, such a high growth in the UK may not be sustainable. almost 20 per cent to £557.7m for the
year ending 30 June 2010 and before
tax profits nosedived to £29.7m from
IAN JERMIN | MERCHANT SECURITIES £151m.
“
The recruiter said that its business
can withstand tough economic times
Robert Walters is our only ‘buy’ among the larger players in the sector and that it is confident moving for-
ward.
and we continue to retain the recommendation. Today the group announced
”
exceptionally good third quarter trading – even the UK reported strong growth. Last month the recruitment firm
revealed that it had laid off a 100 staff
in the UK.
CITYA.M. 7 OCTOBER 2010
Growth concerns
and inflation cause
a three-way split
UK ECONOMY
▲
BY JESSICA MEAD
FOR the second consecutive month, a
three-way split has emerged among
City A.M.’s Shadow Monetary Policy
Committee (MPC) members ahead of
the Bank of England’s policy
announcement scheduled for midday
today.
Two members voted for an increase
in interest rates of 0.25 per cent while
two others thought the time had
come to extend quantitative easing
(QE) further. Both City A.M.’s Allister
Heath and Henderson’s Simon Ward
maintained their hawkish stance, cit-
ing high inflation and an improve-
ment in the money supply.
In contrast, Capital Economics’
Vicky Redwood and Lloyds TSB’s
Trevor Williams called for further
loosening to offset the slowdown in
China warns EU it
will not back down
WORLD ECONOMY
▲
BY HARRY BANKS
CHINESE premier Wen Jiabao told
the European Union (EU) yesterday
to stop piling pressure on Beijing to
revalue its currency, saying a rapid
shift could unleash disastrous
social turmoil.
Wen told an EU-China business
forum in Brussels that China
would implement a reform of its
currency regime announced in
June, making the exchange rate
more flexible, but rebuffed calls
from EU leaders for a rapid and
substantial appreciation.
“Do not work to pressurise us on
the renminbi rate,” the Premier
said, departing from a prepared
speech to a business forum on the
Weak US employment figures give
Fed room for fresh policy stimulus
▲
WORLD ECONOMY
US private employers unexpectedly
shed jobs in September, reinforcing
the conviction that the US Federal
Reserve as early as next month will
embark on another round of mon-
etary policy stimulus to support
the economic recovery.
ADP’s national employment
report yesterday said US private
employer payrolls fell by 39,000
jobs in September. The median
forecast from a Reuters poll was for
an increase of 24,000 jobs.
The Fed’s decision on further
the economic recovery. Williams
thinks that another £50bn of asset
purchases is needed ahead of next
year’s fiscal squeeze.
The remaining five members voted
for no change this month but a
majority stand ready to buy more
bonds should the economic situation
deteriorate from here.
Despite Bank of England external
MPC member Adam Posen’s decidely
dovish speech last week, the consen-
sus among City economists is that the
Bank will hold fire this month ahead
of the Comprehensive Spending
Review.
But many have not ruled out a poli-
cy shift in November when the MPC
will benefit from fresh growth and
inflation forecasts, the austerity cuts
have been outlined and the first esti-
mate of third quarter GDP has been
published.
sidelines of a summit with EU lead-
ers.
Wen said EU leaders should turn
to the US dollar for an explanation
of the fluctuations in the exchange
rate of the euro.
He said China's trade surplus
against the United States was due
to the specific structures of the two
economies, not the yuan exchange
rate.
He noted that a US congressman
had predicted social unrest in
China if there was a rapid rise in
the currency, known as the ren-
minbi or yuan.
“Many of our exporting compa-
nies would have to close down,
migrant workers would have to
return to their villages.
“If China saw social and econom-
quantitative easing, due at their
early November policy meeting,
will likely hinge on inflation and
labor market developments and
the monthly US Labor Department
report on employment tomorrow.
The non-farm payrolls report
will likely show zero growth in
September from August as a fur-
ther unwinding of temporary US
Census jobs and layoffs at state and
local governments offset a slight
pickup in private hiring, according
to a Reuters survey.
A strong payrolls reading is pos-
sible, said Zach Pandl, US econo-
Economic News 19
CITY A.M. | SHADOW MPC
ALLISTER HEATH | CITY A.M.
“With the services sector growing at a faster rate, the supply and velocity of money accelerating, and
inflation too high, it is time for a symbolic quarter point hike in rates.”
SIMON WARD | HENDERSON
“Maintain vote for quarter-point hike. Monetary conditions are loose with velocity recovering, while CPI inflation
could rise to 4 per cent near-term. QE2 will fuel commodities speculation rather than help the real economy.”
GEORGE BUCKLEY | DEUTSCHE BANK
“While the economic news has become less positive, the slowing growth momentum does not seem sufficient
yet to justify further easing in policy. The risks of additional QE have grown but for now its wait and see.”
MICHAEL SAUNDERS | CITIGROUP
“The MPC may produce an unusual three-way split, but the majority will vote to hold. With the rebound in nomi-
nal GDP and sticky inflation, Posen is unlikely to find much support for his view that the UK is like Japan.”
VICKY REDWOOD | CAPITAL ECONOMICS
“The recovery has slowed sharply, while higher inflation still isn’t having much upward effect on inflation
expectations or pay growth. I think the time has come to launch QE but the MPC will probably hold fire.”
TREVOR WILLIAMS | LLOYDS TSB
“Signs of a weakening in the UK economy are becoming more widespread. I vote for rates to remain on hold
in October and for a further £50bn of QE. The latter should start before the fiscal squeeze kicks in next year.”
HOWARD ARCHER | IHS GLOBAL INSIGHT
“No change on rates and I would hold fire on QE for the time being. But I am worried about the growth out-
look and if the economy takes a further downward lurch then further stimulative action would be justified.”
JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“We have long argued that the MPC should err on the side of doing too much. But with nominal private sector
spending up by 8 per cent in the last year, at this stage the data does not support the bears’ case.”
GRAEME LEACH | IOD
“Beyond this month, an expansion in QE looks almost certain by year-end, given the weakness of money
supply growth and the softening across a range of economic indicators.”
HURRY, OFFER ENDS SOON
&
SAVE & SAVE AN EXTRA
ic turbulence, then it would be a
£150
disaster for the world,” Wen said.
The US and the EU accuse China *
of keeping its currency artificially
40%
weak to promote exports, under-
mining jobs and economic growth UP *
in the West. TO
The monetary standoff came
amid growing signs of a “currency
war” in which major industrial
PER COUPLE
nations such as Japan and the
United States are seeking to weak-
en their exchange rates while OR UPGRADE TO A CONCIERGE OR BUTLER SUITE
emerging economies such as Brazil
and South Korea are taking or
& YOUR PARTNER FLIES FREE!*
threatening measures to curb capi-
tal inflows.
The EU also pressed Beijing to
amend its trade practices to put an
end to technology theft, counter-
feiting and export controls.
mist at Nomura Securities in New
York. “But in general if we get any-
thing looking like this on Friday,
‘QE2’ is a done deal at the
November 3 (Fed) meeting."
Another report yesterday
In conjunction with
showed the number of planned lay-
WORLD’S LEADING ALL
offs at US firms rose slightly in INCLUSIVE RESORTS Appointed Operator
September, though it was the sec-
ond lowest level of the year, accord-
ing to the report from consultants TO BOOK CALL 0800 742 742
Challenger, Gray & Christmas.
The Fed last month said it was AND QUOTE ‘OCTSALE’
ready to inject more money into *Terms & conditions apply. Book by 15 Oct 2010. Travel up to 11 Jun 2011.
the economy if needed to shore up
£150 saving is per couple. ABTA & ATOL protected.
a sluggish recovery.
 20 News
Sausage showdown gets apprentices sizzling
APPRENTICE REVIEW
GRAEME ALLISTER
B
EFORE series six of The
Apprentice had even begun
there’d been a promotion: step
forward Lord Sugar of Clapton.
Not that all that ermine and refined
company has done much to soften
him. “You all look good on paper”, he
Hermes still bullish on 2010
▲
RETAIL
BY HARRY BANKS
FRENCH luxury Hermes is maintain-
ing its 2010 guidance despite a broad-
er rebound in the luxury sector, chief
executive Patrick Thomas said yester-
day.
Asked whether Hermes would raise
its forecasts after similar upgrades
from luxury fashion companies such
as Valentino, Thomas said: “Not us,
we keep the same guidance.”
Learn how to plan for the future you want
with a Self Invested Personal Pension
To register for free for this event visit:
www.rbs.co.uk/markets
This adver tisement contains numerous trade marks belonging to The Royal Bank of Scotland Group plc and other companies in the RBS Group. These trade marks include, but are not limited to, The Royal Bank of Scotland logo, The Royal Bank of Scotland and
RBS. If you are in doubt as to whether an item is a trade mark of The Royal Bank of Scotland Group plc or a member of the RBS Group, please contact us for clarifi cation at the registered offi ce address The Royal Bank of Scotland plc, Registered in Scotland No 90312.
Registered Offi ce: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authorityy. RBS
told the 16 new candidates, “but then
so do fish and chips”.
It was midnight in the boardroom
and before they set out for their first
challenge (making and selling
sausages), there was just time for a lit-
tle bombast. “My first word wasn’t
mummy, it was money”, insisted one
candidate. “Everything I touch turns
to sold”, countered another.
Egos puffed to dangerous levels,
there was just time to argue over the
team names before going to
Spitalfields to buy some meat. After a
brief flirtation with Fusion, the boys
called themselves Synergy, both
sounding more like deodorants for
teenage boys. Their minds on loftier
matters, the girls plumped for Apollo,
Speaking on the sidelines of the
Hermes 2011 spring/summer collec-
tion presented on Wednesday – the
last one designed by Jean-Paul
Gaultier – Thomas said economic
clouds remained dark.
“I see that the crisis is far from
being over and that difficulties are
ahead of us,” Thomas said.
Thomas said he was worried the
global financial system was still being
transformed, which risked impacting
consumer demand.
CITYA.M. 7 OCTOBER 2010
inspired by the (not entirely problem- described as “cringable”, proving upbraided him for his posture.
free) space mission. once again that in The Apprentice the Dan chose chief sausage maker
The teams opted for different real loser is always the English Alex and man-brand Stuart for
approaches: the girls decided to make language. the firing line, who took
gourmet sausages while the boys Speaking of which, it the chance to flatter
went for cheap and cheerful. was the boys who Lord Sugar in the
Channelling Gerald Ratner, telecoms ended up back in the most excruciating
entrepreneur Stuart Baggs helpfully boardroom after a way, talking of
explained, “We’re essentially pushing narrow defeat. what an honour it
crap”. At 21, Stuart is the youngest
ever Apprentice candidate and has a
Team leader Dan,
who managed to
would be to work
for “one of the
disconcerting habit of referring to sell £14 worth of most successful
himself as “Stuart Baggs – The sausages, became people, not just in
Brand”. the centre of a Britain but in the
With the charm and social grace of hurricane of abuse, world”.
a mugger, Stuart bounded up to the described as In the end it was
genteel inhabitants of Portbello Road, “volatile”, “bullying” Dan who was fired,
demanding they buy his sausages. It and “acting like a dicta- but at least he kept his
was a display one team-mate tor” while Lord Sugar dignity.
Chi-X Europe haggles with FSA in
bid to avoid Swiss Exchange fee
Thomas said he had not seen an
improvement in the economic envi-
▲
ronment, only “more and more FINANCIAL MARKETS such as Chi-X Europe, Bats Europe and
Chinese customers entering our Turquoise, which all use data from the
shops in Asia and in the West”. CHI-X Europe, the continent’s largest Zurich-based stock market to facilitate
In July, Hermes raised its 2010 sales share trading platform, is in talks Swiss stocks trading.
growth target to 10-12 per cent from with Britain’s Financial Services “The proposed fee amounts to a sig-
five per cent while at the end of Authority (FSA) to find a way of avoid- nificant charge at a time when trading
August, it said it expected sales ing new fees the Swiss Exchange will revenue is scarce,” Chi-X Europe chief
growth of around 12 per cent. Several charge for using its price data. executive Alasdair Haynes said. “So,
luxury groups, including LVMH, and The SIX Swiss Exchange plans to we have contacted the relevant author-
Gucci Group, have posted forecast- impose a new fee of 100,000 Swiss ities about the possibility of using the
beating first-half results. francs (£65,200) on trading rivals, prices from our own order book.”
R is an authorised agent of The Royal Bank of Scotland plc N.V in cer tain jurisdictions.
CITYA.M. 7 OCTOBER 2010
PwC boss urges audit review
▲
PROFESSIONAL SERVICES
BY EMMA SADOWSKI
IAN POWELL, PwC’s chairman and
senior partner has called on the
auditing profession to examine its
role and responsibilities, and evalu-
ate how it can change.
Speaking last night, Powell said
that the current public debate is
focused on the “value and relevance”
of the traditional audit.
He said: “While there is no single
right answer to what those changes
need to be, there is a broad spectrum
of reforms which will make a positive
impact.”
Car sales fall
for third time
▲
AUTOMOTIVE
BY EMMA SADOWSKI
CAR SALES in the UK were down for a
third month, after September regis-
trations dropped by 8.9 per cent com-
pared to the previous year.
According to monthly data from
the Society of Motor Manufacturers
and Traders (SMMT) the fall in sales
meant that 335,246 cars were bought
last month versus the 367,929 which
were sold in September 2009.
The SMMT said the 2009 figure
included the impact of the govern-
ment’s scrappage scheme, when con-
sumers were offered £2,000 for cars
older than ten years.
However, excluding the scrappage
enhanced figures of 2009, the SMMT
8E8CPJ@JcJ\gk\dY\iZXijXc\j
8E8CPJ@JcJ\gk\dY\iZXijXc\j
J\gk\dY\ijXc\j**,#)+-
J\gk\dY\ijXc\j**,#)+-
PK;jXc\j(%-d
PK;jXc\j(%-d
Gi`mXk\jXc\j(.'#0,(
Gi`mXk\jXc\j(.'#0,(
=c\\kjXc\j(+-#')-
=c\\kjXc\j(+-#')-
9lj`e\jjjXc\j(/#)-0
9lj`e\jjjXc\j(/#)-0
CITY MOVES | WHO’S SWITCHING JOBS
Nomura
Former RBS chief market strategist Bob
Janjuah (pictured) and chief markets economist
Kevin Gaynor have resurfaced at the Japanese
investment bank, where they take up the roles
of co-heads of cross asset allocation strategy.
Perma-bear Janjuah made the headlines
weeks before Lehman Brothers collapsed back
in 2008, when he predicted the economic crisis.
Geoff Kendrick has also joined Nomura from
UBS as G10 FX strategist.
F&C Investments
The investment management firm has
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com
His remarks come as the auditing
profession faces scrutiny into profes-
sional standards and competition
issues in the industry.
The House of Lords economic
affairs select committee is currently
investigating competition concerns
over the market dominance held by
the big four accounting firms, while
the large accountants have recently
been the subject of heavy criticism
for the quality of audit work done on
companies such as Lehman Brothers
which collapsed in 2008.
Powell yesterday suggested raising
the bar on auditing standards and
making audits more transparent.
said that car sales in September were
actually 16.3 per cent ahead of last
year and on par with 2008 numbers.
Likewise, 1.6m cars were sold with-
in the last 12 months marking a 7.8
per cent improvement on the previ-
ous year and suggesting that con-
sumer confidence is returning.
“Despite an 8.9 per cent fall in
September registrations, demand for
new cars has stabilised and will end
2010 slightly up on last year,” said
Paul Everitt, SMMT chief executive.
Over 150,000 Diesel based cars were
sold last month, while 4,176 alterna-
tively fuelled vehicles were in
demand. Both figures are slightly are
up on last year. The SMMT said new
car sales for the whole of 2010 should
reach 2m, slightly above 2009’s total.
/%0
/%0 high after food and cotton prices surge
.%/
. %/
((0
0 per cent higher than a year ago, up
-%.
-%. modities drove British shop price infla-
/%,
/%, September, but weak consumer
hired Randeep Grewal and Sam Cosh
(pictured) to its European equity team
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Discussions with clients and the
Treasury’s Audit Committee should
be public, according to Powell.
Powell is also urging the profession
to focus on narrative reporting – the
critical contextual and non-financial
information that is reported along-
side financial information at the
front of annual report.
PwC chairman Ian
Powell has questioned
the “value and
relevance” of the
traditional audit
48
BEST OF THE BROKERS
ANALYSIS l Northern Foods
p 46.00
6 Oct
46
44
42
12Jul 30Jul 19 Aug 9 Sep 29 Sep
NORTHERN FOODS
JP Morgan Cazenove has moved its rating
on Northern Foods back to “underweight”
with a new downgraded price target of
40p. The broker says the food manufactur-
er’s growth and profitability are dependant
upon its relationship with UK food retailers
and its ability to control its costs. The bro-
ker says Northern is likely to come under
pressure from the second half of the year.
Shop price inflation hits a five-month
▲
ECONOMY
A JUMP in the cost of agricultural com-
tion to a five-month high in
demand should contain price pres-
sures in the rest of 2010, a survey
showed yesterday.
The British Retail Consortium (BRC)
said shop prices in September were 1.9
Edited by Victoria Bates
as senior fund managers.
Grewal joins from ICAP Equities and
also formerly spent a decade at Tudor
Capital. He is a specialist in TMT and
healthcare, as well as having experience
covering UK property companies, stock
exchanges and asset managers.
Cosh joins from BNP Investment
Partners, where he was a senior portfo-
lio manager.
Quoted Companies Alliance
The quoted company body has appoint-
ed PwC partner Fiona Kelsey as its new
chairman, replacing Faegre & Benson
partner Donald Stewart.
Sportingbet profit falls
on investigation costs
▲
CONSUMER
ONLINE gambling firm Sportingbet
posted a 69 per cent fall in full-year
pre-tax profit on one-off costs related
to a settlement with the US
Department of Justice and its move to
the main stock market, but said it
started the new year well.
The company had agreed to forfeit
$33m (£21m) to settle a US investiga-
tion over alleged illegal internet gam-
bling.
Net gaming revenue in the first
ANALYSIS l Tesco
440 p
440.65
6 Oct
420
400
380
12Jul 30Jul 19 Aug 9 Sep 29 Sep
TESCO
UBS says there were few surprises in
Tesco’s interim results. A robust margin
performance in the UK made up for a still-
soft sales line and growth was augmented
by the bank and an improving economic
environment, according to the broker,
which rates Tesco “buy”. Profit growth of
9.1 per cent is, in the broker’s view, the best
indicator of the trajectory of the business.
To appear in Best of the Brokers email your research to notes@cityam.com
from an annual rise of 1.7 per cent in
August and the highest since April.
The pick-up was driven by a rise in
food price inflation to its highest since
July 2009 – up by an annual 4.0 per
cent – and reflected a recent surge in
wheat prices.
Meanwhile, a jump in cotton prices
pushed up the price of clothes and lift-
ed non-food prices by 0.7 per cent on
in association with
Kelsey has been at PwC for 20 years
and particularly focuses on mid-cap and
Aim companies, helping them through
mergers, acquisitions and disposals and
preparing private companies for IPO.
She was formerly treasurer of the
QCA, a role which will now be held by
Baker Tilly partner Paul Watts.
State Street
The financial services group has hired
Sam Cole as an executive vice president
and deputy head of its e-Exchange trad-
ing solutions business.
Cole, 40, joins from risk and analytics
service provider BlueMountain
News 21
two months of the new financial year
was 17 per cent above the same peri-
od last year.
“Whilst the economic outlook
remains challenging, our spread of
activities across the different eco-
nomic cycles of Europe, Australia and
South America gives us confidence
for a further year of success,” the com-
pany said in a statement.
For the year ended 31 July, pre-tax
profit was £6.9m, compared with
£22.3m last year. Net gaming revenue
grew 27 per cent to £207.5m.
ANALYSIS l Inmarsat
760 p 644.00
6 Oct
720
680
640
12Jul 30Jul 19 Aug 9 Sep 29 Sep
INMARSAT
Inmarsat has been a stellar performer
since its listing, says Barclays Capital. But
the company has de-rated, which the bro-
ker believes is driven by stalling earnings
momentum and, more recently, Harbinger’s
14 per cent stake sale. The broker says that
the return on capital employment risk from
the Ka-Band investment is factored in and
upgrades the stock to “equalweight”.
the year – the first time the rate has
picked up since April.
The price of cotton hit a 15-year high
last month as fund managers ramped
up their positions in the fibre on the
view that demand was picking up and
stocks were running low, although
prices have subsided more recently.
Meanwhile, a near doubling in glob-
al wheat prices is still filtering down to
food manufacturers.
Solutions, of which he was president.
He was also chief operating officer of
parent group BlueMountain, a $4bn
alternative asset manager focused on
the credit and derivatives markets.
Covington & Burling
The law firm has hired Christopher
Walter as a partner, Chris Bracebridge
as special counsel and Helena Laughrin
as an associate, all in its European
employment practice. All three join
from Paul Hastings in London.
Walter also chairs the International
Committee of the Employment Lawyers
Association.
+44 (0)20 7557 7245
morganmckinley.com
 Investment
22
Christmas will
come early to
the high street
The doom and gloom has already been priced
in to the retail sector, writes Jessica Mead
H
IGH-STREET retailers have every rea-
son to be cautious right now. If it
isn’t the government squeezing
households’ disposable incomes
with one hand and hiking VAT with the
other, then surges in the prices of com-
modities such as cotton, which is at a 15-
year high, are threatening margins.
Only last month Next chief executive
Simon Wolfson said that clothing prices
may have to rise by as much as 8 per cent
in 2011. With consumers still lacking the
confidence or the money to shop until
they drop, retailers are understandably
loath to pass on higher input costs. But
Don’t count on a future
bailout for Euro bonds
High yields have not sufficiently priced in the
risk in the periphery, writes Juliet Samuel
I
NVESTORS are increasingly looking for
new ways to find decent income as
most western bond yields sink ever
lower. Many are flooding into emerg-
ing market (EM) debt, with iShares having
seen its EM bond fund swell to over $1bn.
Others are looking closer to home – and
they don’t have to look far. Markets are
jumpy, as shown by the 10-point spike in 10-
year Irish yields in response to Fitch’s down-
grade yesterday. Deutsche Bank this week
YEN APPEARS
TO BE OVERLY
STRETCHED
MARTIN ARNOLD
SENIOR ANALYST, ETF SECURITIES
T
HE Japanese yen has historically been
considered as a barometer of risk
appetite in the FX market. True to form,
it has strengthened as bouts of risk aver-
sion have hit financial markets. Recently, the
yen reached 15-year highs and has rallied more
than 10 per cent in 2010, prompting official
intervention for the first time in six years. So as
the recovery shows signs of fading, will yen
strength continue despite a litany of Japanese
economic problems?
CITYA.M. 7 OCTOBER 2010
| Listed Products
after two years of heavy discounting to
keep the tills ringing and tinkering with
the supply chain, they may have little
room for manoeuvre left and be forced to
pass on higher prices to the consumer.
However, this is a familiar story and
therefore likely to have already been priced
in. Consequently, any caution from chief
executives during earnings season – which
kicks off in earnest on 18 October in the The high street will gloomy winter for the high street is Arden tant month than August so it can’t be
UK and Europe – is unlikely to have a sig- still be busy this International’s Nick Bubb: “The gloomsters shrugged off.” He also believes that the
nificant downward effect on retailers’ Christmas still expect the coming storm of public sec- “lowly sub-10 times price-to-earnings (p/e)
share prices. And any better-than-expected tor austerity to decimate the consumer but valuations in the general retail sector look
news will give stocks a sharp boost. Picture: REUTERS the resilience of non-food trading is strik- pretty attractive”.
One analyst who is expecting a less ing and September is a much more impor- Longer-term investors who think retail-
high yields of the European sovereign bond
market through iShares’ numerous
Eurozone bond products.
Demand at recent bond sales in the
Eurozone periphery has beaten expecta-
added two funds to its db x-trackers range, tions: Ireland, Spain and Greece all held
with one tracking the iBoxx Eurozone high succesful auctions last month. But with
yield index and the other tracking overall European Central Bank (ECB) bond pur-
Eurozone sovereign debt. Head of db x- chases having risen slightly, many suspect
trackers’ Manooj Mistry says that investors the Bank of stepping in to prop up demand
are attracted to exchange-traded funds to and prevent yields from rising further. Irish
buy bonds because it means they don’t 10-year yields are now at 6.4 per cent and
have to rebalance their portfolios every Portugal is not doing much better at 6 per Don’t make long-term preventative – but should recognise that
time the situation changes – the index does cent. Investors can take advantage of these plans assuming you the ECB is unlikely to allow yields to rise too
it for them. The new funds are listed in yields in the short-term – since the ECB’s will be bailed out high before it starts buying more.
Germany, but UK investors can tap into the actions tend to be retroactive rather than Picture: ALAMY These yields compare very favourably to
Japan’s historically high savings ratio and and the government’s debt position is the rency products show a starkly contrasting
surplus on its current account are behind the
safe-haven perception of the yen. But the
highest in the OECD and politically Japan is a
rudderless ship – it has had five prime minis-
view, with over 35 per cent of ETFS’ assets
under management held in short positions.
unwind of carry trades seems a more likely ters in the past five years. The yen’s real effective exchange rate (REER)
explanation of the yen’s current strength Futures market positioning and options is over 10 per cent above the longer-term
rather than it being seen as a true store-of- pricing confirm the bullish market view of the average and the valuation looks stretched
value asset. Unwinding could be interpreted yen. But investors using exchange-traded cur- given the underlying fundamentals.
as a move to avert risk since investors are
unwinding a riskier trade and seeking to pro-
tect themselves if risky assets decline.
ANALYSIS l The yen tracks Treasuries
The accommodative monetary environment 130 5
is likely to place downward pressure on the
yen in the coming months as the global recov-
Dollar / yen (LHS)
ery path becomes clearer and as interest 120
US Treasury 4
rates rise and differentials potentially widen. 2-year yield (RHS)
Japan’s unsterilised currency intervention is
effectively a decision to pursue an indirect 110 3
form of quantitative easing. A more diplomat-
ically palatable solution could be for Japan to
introduce its own direct QE programme, 100 2
thereby debasing the yen in a similar fashion
to the US dollar and not raising the ire of the
US anti-intervention lobby. 90 1
With an export-driven economy, a strong
yen is a thorn in the side of Japanese
exporters and was partly behind the currency Source: Bloomberg
intervention. Additionally, growth is faltering Jan2005 Jan2006 Jan2007 Jan2008 Jan2009 Jan2010
CITYA.M. 7 OCTOBER 2010
ANALYSIS l Performance of Stoxx Europe
600 Retail over past three months
€ example, Societe Generale has a call war-
285
275
265
255
11 Jul 2010 1 Aug 22
ers’ share prices have been overly
depressed by the gloomy outlook can use
both exchange-traded funds (ETF) and
covered warrants to take a bullish per-
spective.
Covered warrants allow you to take a
core Eurozone yields – Germany offers
just 2.2 per cent. The question for
investors is whether the risk premium of
3-4 per cent accurately reflects the
chance of a default. Analysts at BNP
Paribas point to Ireland and Spain’s
decline in PMI as diverging from the over-
all trajectory of the Eurozone in
September, which offered more good sur-
prises than bad. BNP forecasts double
dips for both countries, and IMF growth
projections are not much better.
But Evolution Securities’ Gary Jenkins
thinks the market might be overly opti-
mistic in pricing in a bailout of the most
indebted Eurozone countries: “Clearly
there isn’t a default scenario being priced
in because otherwise the yields would be
a lot higher,” he says. While relying on a
bailout might make sense in the short-
term, Jenkins is not sure it is wise to bank
on it beyond the next couple of years. “At
the moment Europe daren’t do anything
other than bail them out because the sys-
tem is so fragile that if one country fails
the knock-on impact could lead to a com-
plete meltdown. But fast forward four
years: if the economic outlook is rosier,
the ECB might allow one of them to go.”
This means that even while choosing
European high-yield bonds over their EM
counterparts, investors would be wise to
keep a narrow time horizon. The ongoing
Eurozone crisis has shown that buyers
would be foolish to assume that Europe’s
governments are insulated from default.
In the long-run, a steadily growing
emerging market government with a
decent yield could be a safer bet.
LISTED PRODUCT NEWS
JESSICA MEAD
Amundi has listed two new ETFs on the bourse
view about where you think large cap
retailers such as Marks & Spencer and
Next will be by the end of the year. For
rant (where you bet that the share price
will rise) with a strike price of 400p and
an expiry date of 17 December 2010.
Provided that the stock rises to above
400p before this date, your position is “in-
the-money” – ie, in profit.
ETFs are more transparent and diversi-
Source: Bloomberg
fied so they protect from the risks of invest-
5 Sep 26 ing in a single stock but you can’t invest in
only the British retail sector. Through
AMUNDI LISTED TWO ETFS IN PARIS
European ETF provider Amundi this week
expanded its product offering by launching
two new funds on the Paris stock exchange.
The first gives investors exposure to around
20 stocks in the European energy sector and
replicates the performance of the MSCI
Europe Energy index. The second tracks the
EuroMTS AAA Government index, which
consists of debt securities issued by Eurozone
member states with at least three ratings
equivalent to AAA. The energy ETF has a
total expense ratio of 0.25 per cent while the
Picture: REX fixed income fund costs 0.14 per cent.
RED WINES
FOR AUTUMN
SEE FOOD AND
DRINK ON PAGE 28
providers such as BlackRock’s iShares you
can buy an ETF of the STOXX Europe 600
Retail index. This includes both food and
non-food stocks and the biggest holding is
Tesco at 21.62 per cent. The second is
Stockholm-listed Hennes & Mauritz (H&M)
with 13.62 per cent.
With the sector and many of the con-
stituent stocks attractively priced on a p/e
basis, a bullish outlook for the retail sector
could prove lucrative. Christmas might
have already hit the high street but retail-
ers could well experience a Santa rally over
the next few months.
GROWING DEMAND FOR SUSTAINABLE ETFS
Industry experts anticipate an increase in
demand for sustainable ETFs, according to
UK Sustainable Investment and Finance
(UKSIF) in its latest report The Future of
Investment: Sustainable Index Investing.
Penny Shepherd, chief executive of UKSIF,
said: “Institutional and high net worth
investors are increasingly looking at sustain-
able indexes for both products and perform-
ance measurement.” By investing via ETFs,
retail investors can get accessible and
affordable exposure to such sustainable
indices, the report added.
23
Watch out for Wall Street moves Picture: PA
THE TIPSTER
THE DOW IS
REACHING
FOR APRIL
HIGHS
T
he Dow is making efforts to reach its
April high, but the major companies
are about to bring out the next quar-
terly figures. This means that many are
looking to short the Dow below 11,258 with
a stop and reverse above, particularly if the
market continues to be impressed with com-
pany news. WorldSpreads offers a 1 point
spread on the Dow currently at 10,956-
10,957.
Financial markets remain swathed in
uncertainty and yesterday’s ADP payroll fig-
ures from the US have done little to calm
these fears. But equities keep working their
way higher, spurred on by the prospect of
more cheap money from quantitative eas-
ing. While many believe the run higher will
come to a halt in the not too distant future,
the upside could still have some momentum.
The current IG Index price on the FTSE is
5,674-5,675.
Silver is benefiting from strength in gold
and other precious metals. The price has
had a good run recently and looks set to
continue. Capital Spreads quotes a price of
$22.89-$22.92 for Silver December.
The euro is charging against the dollar
while the Bank of Japan (BoJ) seems
poised to intervene at any moment. This
makes euro-yen looks like an interesting
long bet. Yesterday it broke through a
twelve-month downtrend resistance line
and a 150-day exponential moving average
at around ¥115.25. If the BoJ does inter-
vene we could well see the yen shoot up to
the 200-day moving average around ¥118.
Spread Co offers a spread on euro-yen of
¥115.41–¥115.44
The FTSE is forging ahead to new highs
while other indices are lagging, in particular
the German Dax. It should catch up soon,
testing its own 2010 highs just below
6,400. Capital CFDs offers a price of
6,258.0-6,259.0 for the Dax index.
Donata Huggins
FIRST CURRENCY-HEDGED ETFS IN EUROPE
BlackRock’s ETF division iShares last Friday
launched the first currency hedged equity
ETFs in Europe. The new funds, which are
physically replicated, enable investors to
invest internationally and hedge currency
exposure in one trade. BlackRock said the
indices incorporate a monthly currency
hedge, with exposure hedged using one-
month forward FX contracts. It warned
that forex exposure would be reduced
rather than eliminated. State Street Global
Markets has been appointed to manage the
currency hedge.
 24 Markets & Investment CITYA.M. 7 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 . . . . . . . . . . . . . . . . . . . . . . . .293.00 +3.00 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .521.00 +2.00 574.50 379.50 JPMorgan Emerg Mkts . . . . . . . .593.50 –7.50 609.00 443.00 SABMiller . . . . . . . . . . . . . . . . .1992.00 –28.50 2090.00 1504.00
3i Infrastructure . . . . . . . . . . . . . 114.00 –0.10 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .574.50 +26.00 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .249.10 +1.50 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .281.50 –3.60 286.80 208.20
A.B. Foods . . . . . . . . . . . . . . . .1054.00 +6.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1508.00* +9.00 1529.00 674.50 Kazakhmys . . . . . . . . . . . . . . . .1483.00* +56.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .387.10 –2.50 397.00 307.60
Aberdeen Asset Man . . . . . . . . . .167.00 +0.80 168.80 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .529.50 +2.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .153.00* +3.70 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1450.00 +7.00 1459.00 1056.00
Admiral. . . . . . . . . . . . . . . . . . .1590.00 –74.00 1695.00 1003.00 Dana Petroleum . . . . . . . . . . . .1800.00 — 1817.00 968.50 Kingfisher . . . . . . . . . . . . . . . . . .229.40 –1.10 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1170.00 +4.00 1191.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .126.50 +2.00 137.30 103.10 Davis Service . . . . . . . . . . . . . . .413.00* +5.10 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .136.50* +1.60 164.60 114.60
Afren . . . . . . . . . . . . . . . . . . . . . 116.40 — 117.70 76.50 Debenhams . . . . . . . . . . . . . . . . .67.35 +0.55 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .347.60* –0.50 372.30 157.30 Scot. & Sthrn Energy. . . . . . . . .1120.00 –10.00 1206.00 1006.00
African Barr Gold . . . . . . . . . . . .638.00 +22.00 685.00 520.50 Derwent London . . . . . . . . . . . .1599.00* +32.00 1601.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .572.00* +4.00 576.00 416.70 Scottish Mortgage. . . . . . . . . . . .651.00 +4.50 655.00 475.00
Aggreko . . . . . . . . . . . . . . . . . .1589.00* +18.00 1639.00 685.50 Dexion Absolute . . . . . . . . . . . . .139.30 +0.30 148.00 130.30 Land Securities . . . . . . . . . . . . . .676.00* +13.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .291.00* +3.40 389.90 244.00
Alliance Trust . . . . . . . . . . . . . . .337.90 +0.40 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . . 1102.00* +3.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .105.90 +1.40 106.50 69.05 Serco . . . . . . . . . . . . . . . . . . . . .618.50* +7.00 656.50 489.00
AMEC . . . . . . . . . . . . . . . . . . . .1008.00 +9.50 1024.00 728.00 Dimension Data . . . . . . . . . . . . . 119.80 +0.20 125.50 65.25 Lloyds Banking Gp . . . . . . . . . . . .76.39 +0.72 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1320.00 — 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .400.70* –0.10 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .27.07 +0.06 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .129.70* — 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .453.40 +8.90 456.00 348.00
Anglo American . . . . . . . . . . . .2752.00 +110.50 3015.50 1969.50 Domino’s Pizza . . . . . . . . . . . . . .467.90 –1.30 484.70 278.20 London Stk Exchange . . . . . . . . .679.50 +1.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1425.00* +3.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . .1313.00* +44.00 1344.00 749.00 Drax . . . . . . . . . . . . . . . . . . . . . .385.00* –1.30 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1790.00 +67.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .577.00 — 700.50 525.50
Aquarius Platinum . . . . . . . . . . .363.10 +17.50 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .427.60 +22.40 438.40 305.00 Man . . . . . . . . . . . . . . . . . . . . . .237.70 +10.60 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .158.80 +4.20 159.30 103.00
ARM Holdings . . . . . . . . . . . . . . .389.30 –10.70 419.50 138.00 Easyjet . . . . . . . . . . . . . . . . . . . .433.30 +46.40 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .390.80 –1.70 412.70 321.90 Smiths . . . . . . . . . . . . . . . . . . .1250.00 +10.00 1261.00 881.50
Ashmore . . . . . . . . . . . . . . . . . . .351.90 +3.30 357.50 215.00 Edinburgh Inv Tst . . . . . . . . . . . .427.90 –1.10 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .308.60 +6.60 331.00 229.80 SOCO Intl . . . . . . . . . . . . . . . . . .448.40 +4.40 510.00 380.60
Astrazeneca . . . . . . . . . . . . . . .3236.00 –6.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .243.50 +2.70 251.00 144.80 Melrose . . . . . . . . . . . . . . . . . . .285.30 –0.60 290.00 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .741.50 +3.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . .125.60 +7.40 126.60 87.35 Mercantile IT . . . . . . . . . . . . . . . .974.00* +3.50 1002.00 822.50 Spectris . . . . . . . . . . . . . . . . . . 1107.00 +32.00 1117.00 653.00
Autonomy Corp . . . . . . . . . . . .1551.00 –301.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .503.50 +22.10 504.00 358.50 Michael Page Intl. . . . . . . . . . . . .478.40* +8.30 478.40 316.40 Spirax-Sarco Eng . . . . . . . . . . .1832.00 +23.00 1859.00 1050.00
Aveva . . . . . . . . . . . . . . . . . . . .1430.00 –30.00 1504.00 856.50 Eurasian Nat Res . . . . . . . . . . . .926.00* +15.50 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .367.90 –11.40 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .146.00 +1.90 146.30 85.70
Aviva . . . . . . . . . . . . . . . . . . . . .402.10* +5.80 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .602.00 +5.00 630.00 364.40 Millen & Copthorne . . . . . . . . . . .532.00* +12.00 547.00 321.40 Sports Direct Intl . . . . . . . . . . . . .145.40 –0.50 148.00 89.85
Babcock International . . . . . . . . .580.50 — 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .685.00 +2.50 698.50 520.00 Misys . . . . . . . . . . . . . . . . . . . . .289.00 –5.60 298.00 196.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1159.00 +1.00 1190.00 616.00
BAE Systems . . . . . . . . . . . . . . .355.40 +4.60 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .332.70 +18.20 396.20 140.70 Mitchells & Butlers . . . . . . . . . . .295.70 +2.20 343.90 228.30 St James’s Place . . . . . . . . . . . . .282.00 –2.00 298.00 203.40
Balfour Beatty . . . . . . . . . . . . . . .269.70 –1.90 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .374.60 +3.70 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .191.90 –0.90 257.00 187.60 Stagecoach. . . . . . . . . . . . . . . . .184.80 +2.40 204.90 137.00
Barclays . . . . . . . . . . . . . . . . . . .306.80 –2.00 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .291.60 +2.70 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .537.50 +4.50 540.50 304.70 Standard Chartered . . . . . . . . . .1873.50* –20.50 1946.00 1366.50
Barratt Development . . . . . . . . . . .99.25 –0.95 178.75 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1315.00 +15.00 1333.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .327.00 +3.60 328.90 265.00 Standard Life . . . . . . . . . . . . . . .232.00* +3.70 237.00 170.00
BBA Aviation . . . . . . . . . . . . . . .194.10* +4.20 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .252.40* +1.00 285.70 220.90 Morrison Wm . . . . . . . . . . . . . . .299.80* +1.40 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . .1226.00 +1.00 1312.00 499.00
Bellway. . . . . . . . . . . . . . . . . . . .597.50 –1.00 842.50 510.00 Genesis Emerging Mkts Fd . . . . .527.00 +9.50 527.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .919.00 +9.50 922.00 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .143.60 — 153.80 106.60
Berkeley . . . . . . . . . . . . . . . . . . .839.00 +2.50 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .172.00 +4.10 174.30 100.40 National Express. . . . . . . . . . . . .240.40 +1.40 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .514.00 +14.00 516.00 341.40
BG . . . . . . . . . . . . . . . . . . . . . . 1174.50 +7.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1273.00* +3.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .562.50 +2.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2137.50 +63.00 2346.00 1618.50 Great Portland Estates . . . . . . . .364.10 +10.40 364.10 236.60 Next . . . . . . . . . . . . . . . . . . . . .2262.00 +1.00 2360.00 1733.00 Tate & Lyle . . . . . . . . . . . . . . . . .486.20 +12.20 509.00 388.00
BlackRock Mining . . . . . . . . . . . .658.50 +9.50 665.00 475.00 Greene King . . . . . . . . . . . . . . . .431.90 +3.20 484.00 372.50 Northumbrian Water . . . . . . . . . .337.60 +4.70 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .28.69 +0.28 46.34 24.29
BlueBay . . . . . . . . . . . . . . . . . . .350.80 +2.80 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .447.00 +4.40 562.50 356.00 Ocado Grp . . . . . . . . . . . . . . . . .131.90 –0.30 169.00 129.20 Telecity . . . . . . . . . . . . . . . . . . . .486.00 –12.10 546.00 320.00
Bluecrest Allblue GBP . . . . . . . . .169.20 +0.20 170.00 147.10 Halma . . . . . . . . . . . . . . . . . . . . .327.60 +7.30 327.60 218.40 Old Mutual . . . . . . . . . . . . . . . . .142.40 +3.40 143.30 95.30 Templeton Emrg Mkts . . . . . . . . .642.00 +5.50 648.00 455.00
Booker . . . . . . . . . . . . . . . . . . . . .50.55 +0.88 50.55 37.50 Hammerson . . . . . . . . . . . . . . . .412.00 +10.30 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .289.10 +3.70 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .440.65 +9.40 454.90 368.40
BP . . . . . . . . . . . . . . . . . . . . . . .435.55 +4.05 658.20 296.00 Hargreaves Lansdown . . . . . . . .470.90 +9.40 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . .1004.00 +22.00 1069.00 761.00 Thomas Cook . . . . . . . . . . . . . . .180.10* +0.40 277.20 167.50
Brit Insurance . . . . . . . . . . . . . .1033.00 +3.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 117.60 –1.00 120.10 82.50 Pennon . . . . . . . . . . . . . . . . . . . .580.50* –1.00 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .893.50 +39.50 915.00 647.50
British Airways . . . . . . . . . . . . . .266.10 +11.50 268.50 172.40 Henderson . . . . . . . . . . . . . . . . .133.10 +5.20 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .392.90 –1.10 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .224.40 –1.50 313.90 189.20
British Amer. Tob . . . . . . . . . . .2370.00 +2.50 2439.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .325.70 +13.70 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1423.00* +28.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .396.20 –3.50 436.20 261.20
British Empire Tst . . . . . . . . . . . .480.80 +3.70 481.00 338.50 Hikma Pharma . . . . . . . . . . . . . .706.50* +3.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . . 1137.00* +34.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1297.00* –4.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .490.70 +2.90 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .353.20 +4.60 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* — 775.00 550.50 UK Commercial Prop. . . . . . . . . . .78.90 –1.10 84.90 70.00
Britvic. . . . . . . . . . . . . . . . . . . . .469.80 –5.30 518.00 341.50 Hochschild Mining . . . . . . . . . . .476.50 +24.10 495.50 220.00 Premier Farnell . . . . . . . . . . . . . .280.20* +6.20 282.80 140.60 Ultra Electronics . . . . . . . . . . . .1759.00 +19.00 1774.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .243.20 +3.30 284.30 204.80 Home Retail . . . . . . . . . . . . . . . .210.10 +2.20 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1675.00 — 1703.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .709.50 +2.50 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .464.40 +5.30 502.00 422.00 Provident Financial . . . . . . . . . . .820.00 –2.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1845.00 +11.00 2024.00 1662.00
BT . . . . . . . . . . . . . . . . . . . . . . .151.20 +2.70 153.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .663.70* –1.80 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .643.00 +6.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .583.50 — 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .768.50 +10.50 784.50 614.00 Hunting . . . . . . . . . . . . . . . . . . .650.50 –5.00 661.00 429.10 PZ Cussons . . . . . . . . . . . . . . . .376.40* +2.00 382.70 231.70 Utd Business Media . . . . . . . . . .621.50* +1.50 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1005.00 –9.00 1065.00 495.50 ICAP . . . . . . . . . . . . . . . . . . . . . .449.50 +5.20 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .108.50 — 179.10 103.50 Vedanta Resources . . . . . . . . . .2223.00 +26.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .56.90 — 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .530.50* +17.00 532.00 291.00 Randgold Resources. . . . . . . . .6585.00 –70.00 6755.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1323.00 –5.00 1347.00 726.50
Cable & Wire Wwide . . . . . . . . . . .75.60 +0.60 94.80 60.05 Imagination Tech Gp . . . . . . . . . .389.20 +4.50 399.00 161.10 Reckitt Benckiser . . . . . . . . . . .3464.00 –31.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .161.90 +0.90 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .452.30 +7.30 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .792.50* +6.50 803.50 410.00 Reed Elsevier . . . . . . . . . . . . . . .554.00 +9.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1519.00 +33.00 1519.00 639.00
Caledonia Invs . . . . . . . . . . . . .1661.00 +8.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1910.00 +7.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .84.70* +4.45 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .761.00* –19.00 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .792.00* +13.50 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .328.20 +11.40 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1093.00* +18.00 1094.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1671.00 +24.00 1680.00 1182.00
Capital & Counties . . . . . . . . . . .136.30 +2.20 139.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .428.50 +7.00 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.70 +0.70 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .170.70 +2.50 217.80 160.50
Capital Shopping Centres . . . . . .389.20 +5.20 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .644.00* +15.00 831.00 528.50 Resolution . . . . . . . . . . . . . . . . .246.50* +2.50 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .476.50 +3.20 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .327.30* +6.20 361.90 272.00 Intercontl Hotels . . . . . . . . . . . . 1172.00 +26.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .315.40* +3.60 348.80 266.40
Carnival . . . . . . . . . . . . . . . . . .2583.00 +25.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .308.50 +4.80 309.60 233.50 Rightmove . . . . . . . . . . . . . . . . .757.50 +12.00 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1653.00 +36.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .341.50 +2.70 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1842.00 +22.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3926.00 +134.00 4104.00 2612.00 Wood Group (John). . . . . . . . . . .432.60 +8.00 443.50 279.60
Centamin Egypt . . . . . . . . . . . . .169.80 +1.90 194.40 100.00 Intl Personal Fin . . . . . . . . . . . . .281.00* +12.50 283.00 166.30 RIT Capital Partners . . . . . . . . .1152.00 +10.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .703.00 +3.50 744.00 528.00
Centrica . . . . . . . . . . . . . . . . . . .321.80* –5.20 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .399.30* +1.80 401.60 248.20 Rolls Royce . . . . . . . . . . . . . . . .601.50 +1.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1286.50* +46.50 1344.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .747.50 +25.00 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .310.70 +3.50 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1805.00 +10.00 1823.00 1101.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3050.00 +55.00 3711.00 2551.00 Investec . . . . . . . . . . . . . . . . . . .512.50 +6.50 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .49.49 +0.41 58.95 28.25
Close Bros . . . . . . . . . . . . . . . . .740.00 –10.00 803.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .61.55 +2.30 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1972.00 +32.50 2068.50 1621.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .235.50 +6.00 278.60 205.50 Jardine Lloyd Thompson. . . . . . .572.00 +1.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1909.00 +27.00 1997.50 1550.00
COLT Group . . . . . . . . . . . . . . . . 118.20 –0.30 144.20 107.70 Johnson Matthey . . . . . . . . . . .1804.00 +24.00 1814.00 1337.00 RSA Insurance . . . . . . . . . . . . . .131.30* –0.90 142.00 114.10 www.interactivedata.com

FTSE rises do something different Tech shares

on stimulus drag down
expectation Wall Street
THELONDON From 8 Oct 2010 THENEW YORK
REPORT
Wall Street: REPORT
‘I once said greed is
good... but now it
seems it’s legal.’
Money Never Sleeps
B 12A
T
RITAIN’S top share index closed ECH shares slumped yesterday,
higher, at a fresh five month Gordon Gekko (Michael Douglas) hit by worries about demand for
peak yesterday led by miners semiconductors and data stor-
and energy issues as commodi- age.
ties rose on optimism governments
will act to stimulate economies
Tickets from £8.50 Book now barbican.org.uk The Nasdaq bore the brunt of the
day’s selling, led by data system serv-
around the world. ices provider Citrix Systems. The stock
At the close, the FTSE 100 was up was down in sympathy with small-cap
45.63 points, or 0.8 per cent at Equinix, which plunged 33.1 per cent
5,681.39, its highest close since 26 Private employers cut 39,000 jobs after the budget airline said it expect- an above-forecast second-quarter to $70.34 after it issued a revenue
April. in September, according to the ADP ed to beat its profit expectations for trading update prompted some prof- warning late on Tuesday. Citrix slid
Miners gave the biggest boost to Employer Services report, the largest the year following a strong perform- it taking. Charles Stanley cut the rat- 14.1 per cent to $60.15.
the index as gold hit a record high monthly loss since January and a dis- ance over the summer. ing on the supermarket for Another blow to tech stocks came
and copper rose to its highest since appointment to analysts who had Autonomy was the top blue chip Sainsbury to “neutral” on valuation from Morgan Stanley’s downgrade of
July 2008 on a strong demand out- forecast 24,000 private payroll addi- faller, shedding 16 per cent after the grounds. And fellow retailer Marks & semiconductor companies Xilinx and
look and expectations that govern- tions. software firm said in a trading Spencer shed 0.4 per cent ahead of a Altera to “underweight” on concerns
ments will do more to stimulate the Meanwhile, on the domestic update it would cut its full-year rev- trading update due today. about a slowdown in Asian markets.
global economy. macro front, a survey by the British enue guidance by about three per Both fell more than two per cent.
Anglo American, Lonmin, Retail Consortium showed that a cent after weaker than expected ANALYSIS l FTSE 5,681.39 The broader market, meanwhile,
Kazakhmys, and Xstrata added jump in the cost of agricultural com- demand. 6 Oct was hamstrung by a poor reading on
between 3.8 and 4.2 per cent, helped modities drove British shop price In reaction, Goldman Sachs 5,700 private-sector employment and specu-
by a Morgan Stanley note increasing inflation to a five-month high in removed Autonomy from its lation about further quantitative eas-
price targets across the sector. September. “Conviction Buy” list, and Panmure 5,500 ing from the Federal Reserve.
Oil majors gained as crude hit its British Airways was a big blue chip Gordon downgraded its rating to The Dow Jones industrial average
highest level in five months, with riser, up 4.5 per cent, adding to sharp “hold” as estimates and targets were added 22.93 points, or 0.21 per cent,
5,300
Royal Dutch Shell up 1.7 per cent. gains in the previous session when it chopped. to 10,967.65. The Standard & Poor’s
US blue chips were up 0.2 per cent reported strong September passenger Other technology issues suffered 500 Index inched down 0.78 of a
by London’s close, although an unex- numbers, helped by a Barclays in sympathy, with Sage Group down 5,100 point, or 0.07 per cent, to 1,159.97. The
pectedly poor reading on private sec- Capital target price hike. 1.3 per cent. Nasdaq Composite Index dropped
tor hiring provided some caution Mid-cap peer EasyJet was the top Food retailer Sainsbury was also a 4,900 19.17 points, or 0.80 per cent, to
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
ahead of September’s jobs report. FTSE 250 gainer, jumping 12 per cent blue chip faller, down 0.6 per cent, as 2,380.66.
 City Focus BOLTHOLES 25
IN BRUSSELS
| Careers SEE PROPERTY
TOMORROW

The world’s best negotiator explains

how to get more out of your work
Whether you want more money
or a better office, keep talking,
discovers Jeremy Hazlehurst

O
N the day that Stuart Diamond
arrived in London, a Tube strike
had paralysed the city, and the
next day when I met him he was
still shaking his head in wonder at the
whole thing. “The mayor should never
have let it get to this stage, so that
Londoners are suffering because of two
people being fired,” he said. “They need
to sit down and brainstorm, they should
have been doing that for months.”
Everybody has their views on the
strikes, but Diamond’s are worth more
than most people’s – he’s arguably the
most experienced and best negotiator in
the world. He’s the man who helped
resolve the Hollywood writers’ strike, and
has trained managers at Google, JP
Morgan Chase, IBM, BASF, Microsoft – the
list of corporate giants goes on.
He has consulted for the UN, once per-
suaded Bolivian farmers to give up
cocaine-growing for bananas, and per-
haps most impressively also says that he
has taught parents to persuade their chil-
dren to eat fruit and couples to get on
better.
Diamond is a former New York Times
journalist – who won a Pulitzer Prize for
investigating the Challenger space shut-
tle crash – who studied at Harvard Law
School and did an MBA at Wharton. Now
he has written a book, Getting More,
which aims to help you become a better
negotiator at work, in your relationship,
and even with your children.
So what’s the big idea? “Everything is a
trade,” he says. “The theory is that you co-
operate, but in order to find out the
other sides’ needs with the ultimate end
of meeting yours.” The principles are the
same, whether we are talking about
General Motors, your boss, your spouse or
North Korea, and the first step is to find
out what they want. To do that, you have
to get talking. “You have to understand
their perception, however crazy,” he says.
“Only then can you lead them where you
want them to go.”
VALUE JUDGEMENTS
So how does this translate to the work-
place, for example to negotiating for
more pay? The first step is to get informa-
tion. “What you want to know from the
boss is: how does the company value me,
and how can I make them value me
more?” You need to find out what your
Stuart Diamond
Picture:
Micha Theiner
/City A.M.
boss’s goals are and if you can help him
achieve them. That is the way to make
him value you more. And that is the
route to more influence, and money.
This is linked to honesty, another qual-
ity Diamond is keen on. If a negotiation
is going nowhere, sometimes the best
thing you can do is to say: “This is not
working”. That will allow you to reset
the discussion, and keep talking.
Roadblocks where everybody packs up
and goes home are no good at all. Unless
you keep talking, you’ll never get any-
where. He explains that when he started
working on the Hollywood writers’ strike
he persuaded the studio boss to physical-
ly walk over to the picket line and start
talking to people. Two days later, the
strike was over.
This brings us to Diamond’s second
big idea: that “the world is not rational”
and that to negotiate successfully you
have to understand how emotional peo-
ple are. You are far more likely to get
results if you can make the other side
feel better about themselves. Even
something as basic as flattery can work.
“If somebody says to me: ‘You are flat-
tering me!’ I say: ‘Yes!’,” he chuckles.
Don’t underestimate the power of mak-
ing people feel better. Get people to like
you, and they will help you. It’s human
nature. Whether you are trying to per-
suade somebody to hire you, give you
more money, or give you a corner
office, they are more likely to do so if
you get on.
There are lots of ways of doing this.
Diamond tells the story of a senior per-
son in a computing firm who found out
that a potential client’s daughter was
having computer problems, so he spent a
morning helping her. They got the con-
tract. Another firm was unable to give
somebody a raise, but helped to get the
foundations of his new home built. He
stayed. Sometimes people ask for a raise
when they are starting a family, but are
sometimes equally happy with flexible
working. Everything is a trade.
BARGAIN BOX | 5 WAYS TO GET WHAT YOU WANT AT WORK
1. Expand your relationships. You want to
achieve your goals, so get to know people who
can help you do that. That can be the security
man who lets you in when you’ve lost your pass,
the IT chap who will sort out your problems
quickly, or the PAs who know the gossip.
2. Make it personal. Get face-to-face with the
person who makes the decision, and try to build
a relationship. Then you can leverage these per-
sonal contacts. If your firm’s rules throw up a
problem that appears to be insoluble, your pow-
erful friends can often make things happen.
3. Reframe standards. For example, instead of
demanding more money, show that others with
the same skills get more, or explain the value you
bring to the company. Make it an issue of fair-
It all sounds great in theory, but how
much of this can actually be learned? Are
good negotiators made or born? Here,
Diamond insists that you can learn the
skills, but that you have to use them in
an “authentic” way. People know when
you are faking, or trying to be somebody
you are not and they will trust you less if
they see that. “You have to be honest.
Credibility comes from being real.”
Are you listening, Boris and Bob?
Getting More by Stuart Diamond is out now,
£14.99 from Penguin
ness. Make it easier for them to make the deci-
sion, by giving them a way to explain it to the
people they need to. Standards or rules can seem
to block things, and you can use other standards
to unblock them.
4. Trade items of unequal value. Sometimes peo-
ple will accept a lower salary if they get a better
job title; somebody who is about to have a child
might value flexible working. Rather than forcing
somebody to do a piece of work they don’t want
to, trade it for something you don’t want to do.
5. Be incremental. Don’t try to get all your goals
at once. If you want to move departments, ask if
you can do a bit of your target work. It might
take longer, but if the alternative is no deal at all,
then it’s worth it.

BOOK OF THE MONTH

THE MANAGEMENT
MASTERCLASS
BY EMMA DE VITA
Headline, ££10.99
Jeremy Hazlehurst
HALLELUJAH. In a world filled with
pseudo-intellectual management books,
at last comes a thoroughly practical,
easy-to-use one bereft of posturing and
pretension. If you want a book that gives
you a quick-fire tour of the current state
of management theory, then this is it. A
journalist for Management Today, the
author has read all the books so that
you don’t have to, and boils down their
wisdom into 175 sparsely-worded, con-
cise pages of “practical, no-nonsense
advice whether you’re a chief executive,
a graduate trainee or a fledgling entre-
preneur.”
There are lists galore – 10 ways to moti-
vate, 10 ways to inspire, 10 to handle
rumours; there are “crash courses” in
managing a crisis, managing a virtual
team, chairing a meeting and so on. It’s all
easy-to digest, but every word is wise and
there’s no fat.
There are sections on words like “net- that? Far more memorable than rattling
work” and “bonus” which are snappy and out some reheated maxim from Lao-Tse
helpful (“don’t worry if your network has for the umpteenth time.
holes – it’s meant to”), memorable exam- Although it’s short, it’s got a broad focus,
ples – the Kray Brothers’ downfall, we are and my favourite section
told, was due to poor delegation skills; was The Numbers, which
instead of getting somebody else to do deals with things like bid-
the dirty work, they did it ding for internal resources,
themselves. cutting costs and dealing with
Then there are well-chosen falling sales. Did you know that
quotations. The section on Oscar Wilde said: “The salesman knows
authenticity reminds us that nothing of what he is selling, save that he
Dolly Parton said: “Find out who you is charging a great deal too much for it”?
are, and do it on purpose.” How brilliant is A cracking little book.
 Lifestyle
26 CITYA.M. 7 OCTOBER 2010

| Film Review Special

Brace yourself, Gordon is in town

Wall Street II is no flashback to
the 80s, but Michael Douglas still
steals the film, says Marc Sidwell

One or two things

Film have changed while
he was in prison
MONEY NEVER SLEEPS
Cert: 12A
hhhhi

G
ORDON Gekko comes to London. If
you enjoyed Oliver Stone’s original
film, do you really need any other
inducement to see Wall Street’s
sequel, Money Never Sleeps? For a few
brief scenes the financial world’s debonair
Mephistopheles can be seen, trademark
devil-may-care smirk and all, getting
shaved in Trumper’s, measured for a suit
in Savile Row and doing what he does best,
ruthlessly putting money where it can
grow fastest, from an glass-walled office
with a magnificent City view.
Be warned that after a twenty-three
year gap, this film is far more than a con-
ventional sequel and a little less than its
remarkable predecessor. Wall Street was
the film of a director young enough and
angry enough at the world to try and
change it, a morality tale aimed at the bull
market of the 1980s; the new film is the
work of an older man looking for life les-
sons in the rubble of the 2008 crash, mak-
ing Wall Street II an altogether more
autumnal affair. The battle of the banks is
interwoven with the story of Gekko’s
attempts to rebuild a relationship with his
estranged daughter, and to atone for the
death by overdose of his only son. At times
the atmosphere is more like a late
Shakespearean comedy than a conven-
tional Hollywood coming-of-age drama.
That could sound a little downbeat, yet
remember the promise of those scenes in
London. This is not just a case of exit
Gekko, pursued by a bear. One of the
charms, if also a frustration, of Money
Never Sleeps, is that it offers so many
films under one banner. That gives it over-
all a restless, exhilarating energy, if also
making it less tight in storyline than the
original.
In the new film, as well as the story of
what Gordon gets up to after his prison
sentence – he writes a bestseller predict-
ing the 2008 meltdown – we also have a
reworking of the old Bud Fox-Gekko
dynamic. Shia LaBeouf is a young trader,
Jake Moore, in search of a mentor and
engaged to Gekko’s daughter. He gets
more that he bargained for not only
from his encounters with Gekko but
in his new boss, Bretton James,
played by Josh Brolin as a brutal
negotiatior with a bottomless thirst for
power. As Moore strives to break free and
make sense of his own priorities, the film
gains yet another strand as it attempts a
potted history of the 2008 crisis. Surely
never before has a film managed to com-
bine a bittersweet quest for reconciliation
across the generations with an exposition
of the nature of toxic debt and moral haz-
ard.
It is to the great credit of Stone that the
film, wobbling under the weight of so
many elements, still more or less suc-
ceeds, combining nostalgic cameos – Bud
Fox has apparently sold his soul for a per-
matan and a blonde on either arm – with
a fresh take on the world of finance after
twenty years. Stone’s personal politics may
lean towards Hugo Chavez, but he grew
up with Wall Street – his father was a bro-
ker – and he remains a highly gifted direc-
tor. The result, as with the first film,
escapes into a much more human story
than Stone’s didactic side might have
wished.
Stone presents his bankers like rival
mafia families, and their meetings at the
Fed as the shameless fleecing of the
public coffers by men serving their
own cynical ends, but he also takes
aim at Main Street for its embrace
of an unsustainable property
bubble. And although a cri-
tique of government’s role in
the crisis is absent from his
narrative, Stone keeps his
enthusiasm for big government
to himself. Indeed, the only words on gov-
ernment are left to Gekko, who more than
once expresses his “healthy distrust for
big government”. The deeper lesson seems
to be one of human tragedy in the face of
the agendas of the powerful.
All that said, Money Never Sleeps falls
short of the first film. Wall Street did not
just put a fresh gloss on the ancient prob-
lem of power: it announced a new world,
one that was brash, rich, egalitarian, driv-
en by technological revolution and, yes,
dangerous and open to abuse. Cell phones
are smaller in the sequel, but the shock of
THEN AND NOW | THE QUOTABLE GORDON GEKKO
WALL STREET
We make the rules, pal. The news, war,
peace, famine, upheaval, the price per paper
clip. We pick that rabbit out of the hat
while everybody sits out there wondering
how the hell we did it. Now you're not naive
enough to think we're living in a democracy,
are you buddy? It's the free market.
The point is, ladies and gentleman, that
greed, for lack of a better word, is good.
Greed is right, greed works. Greed clarifies,
cuts through, and captures the essence of
the evolutionary spirit. Greed, in all of its
forms; greed for life, for money, for love,
knowledge has marked the upward surge of
mankind.
the new is absent. By contrast, Wall Street,
planned as a show trial of the new breed
of trader, saw the type Stone wanted to
condemn becoming the story, rather than
his scripted verdict.
Gekko lives on, a demonic figure who
will not let bonds of blood or loyalty stand
in the way of his skill. He is a devil, but
also a liberator, a City College boy who
refuses to let vested interests have all the
fun. He attracts and appals, because we
still live in his disrupted world, with even
the powerful too often clinging to old cer-
tainties that don’t work any more.
WALL STREET II
Someone reminded me I once said "Greed is
good". Now it seems it's legal. Because
everyone is drinking the same Kool Aid.
Money is a bitch that never sleeps!
The mother of all evil is speculation.
The one thing I learned in jail is that money
is not the prime asset in life. Time is.
It's not about the money - It's about the
game.
Stop telling lies about me and I'll stop
telling the truth about you.

CITY VIEWS: WHAT DID THE ORIGINAL WALL STREET FILM MEAN TO YOU WHEN RELEASED BACK IN 1987? Interviews by Victoria Bates and Ben Griffiths

DAVID BUIK | BGC PARTNERS QUENTIN SMITH | OLD MUTUAL ASSET MANAGERS CLEM CHAMBERS | ADVFN
“Wall Street was a major cult film. The “As a film that captured the spirit of the “The original film caused widespread
greased-back hairstyles, the £1,000 age, the original Wall Street was with- excitement among people who didn’t
‘whistle and flute’, the £150 pair of out equal. Mostly, its legacy in the City know much about the City, and the
Churches, Turnbull & Asser shirts was a collection of great one-liners – ‘greed is good’ slogan captured the
and Hermes tie. It was all a great act ‘money never sleeps’, ‘greed is good’ imagination of the lumpenproletari-
and no doubt Gordon Gekko was and, my personal favourite, ‘lunch is for at – but at the end of the day, it was just
very influential.” wimps’!” a movie, not a creed.”
CITYA.M. 7 OCTOBER 2010
An angel in Wonderland doesn’t
quite reach the satirical heights
The wildly inventive
recession novel by a
Booker Prize-winner
is scuppered by its
second-rate narrator
LIGHTS OUT IN
WONDERLAND
BY DBC PIERRE
Faber & Faber, £12.99
hhhii
by Jeremy Hazlehurst
DBC PIERRE’S first novel, Vernon God
Little, was a brilliant act of ventrilo-
quism in which he channelled the voice
of a 15-year-old American boy on death
row for a murder. This – his third novel –
also tries to capture the state of the
world through another young man
struggling to make sense of his peculiar
segment of it, and is also a no-holds-
barred, scorched-earth critique of capi-
talism.
Our narrator is the angelically-named
Gabriel Brockwell – confused anti-capi-
talist and self-confessed bad poet,
microwave chef, drug-abuser and all-
round loser. He decides to commit sui-
cide, but after one last bender with his
pal Nelson Smuts, who is working as a
chef in a Tokyo restaurant. Drugs, high-
end booze and a sexual encounter with
an octopus follow.
Soon we are in Berlin – site of capital-
ism’s triumph over Communism – where
Smuts is hired to create a menu that is
evidently meant to suggest Trimalchio’s
famously decadent feast in Petronius’
Satyricon. Koalas, rhinos and monkeys
are on the menu, as are drugs, booze and
grubby decadence.
The fantasies about high-end cuisine
are baroque and beyond, the whole
thing becomes so cartoonishly hyper-real
that the satirical intent is drowned. It’s
not helped by ponderous asides (often in
footnotes which break the story’s flow)
about Thatcherism and totalitarianism,
and the general decadence of market
capitalism.
The problem with ventriloquism is
that you are dependent on the quality of
your dummy. Vernon Little was a sharp,
acerbic, mercurial, surprising and witty
one. Gabriel is just a dummy.
For all its invention, the characters
and the world Lights Out creates are pro-
saic, and after a couple of hundred pages
the stylised, over-rich dialogue is hard to
digest – almost as hard as a plate of mon-
key-brain ravioli.
OUT OF OFFICE
JEREMY HAZLEHURST
Rory Kinnear – to see or not to see?
THE GUN
BY CJ CHIVERS
Allen Lane, £25
hhhhi
by Jeremy Hazlehurst
THE HISTORY of the Kalashnikov rifle
might seem a bloodthirsty topic, if not
one reserved only for bores and gun
nuts, but in the hands of this Pulitzer
Prize-winning New York Times journal-
ist – who was formerly a marine who
fought in the first Gulf War – it is a fas-
cinating look at mass production,
industrialisation, and the way that tech-
nology shapes the world.
To illustrate this, a few Kalashnikov
facts from the book: there is one for
every 70 people alive; they are so widely
available and easy to use that the
Chukti people of the western Pacific
shoot whales with them; guns made in
1953 are still being used by Afghan mil-
itants; the flag of Mozambique has a
Kalashnikov on it, where it has equal
billing with a hoe and a book.
Remember, too, that it features on
murals in Belfast. It is one of the icons
of our era.
RORY KINNEAR AS HAMLET
Roll up, roll up, tickets are on sale now
to see this brilliant actor take on the
biggest role imaginable. The Oliver-win-
ner has proved that he is a versatile
stage actor over the years, and it’s just
the time for him to take on The Dane.
Advance rumours suggest that he’ll do
it as a hoodie, and has a mercurual
rather than a gloomy take on the role,
perhaps taking a cue from David
Tennant. Not to be missed.
From 26 October, tickets on sale now from £10
Lifestyle | Books
Living the high The Kalashnikov is a product of state
life in Tokyo manufacture – only the Soviet system
could have devoted such expertise and
Picture: ALAMY know-how to creating a 10lb gun with
so much firepower.
When the USSR collapsed, the guns it
manufactured spread all over the world.
The wars in many parts of the world
could only have been fought with them;
it has made child soldiers and guerilla
armies possible. As Chivers says: “War
reorganized around Stalin’s gun”.
Chivers follows the sad, strange
career of General Kalashnikov, used as a
salesman to flog his gun to dictators
and repressive regimes all over the
world, and also tells the surprising
secret history of how firearms deter-
mine the course of wars – had the
Americans in Vietnam had better guns,
history might have been very different.
In his novel Bomber, Len Deighton
suggests that war is driven by machines,
and that the possibilities they allow
become inevitable. We are drawn along
by heavy bombers, atomic bombs and
other weapons, and lives change to fit
the patterns their weapons create. The
history of the Kalashnikov suggests that
rather than being a fanciful notion, it’s
a melancholy truth.
CHOCOLATE TEA AT CLARIDGE’S
You probably didn’t know that it is
chocolate week from the 11th, but it is.
Where better to celebrate that
Claridge’s? Chocolatier William
Curling will be dishing up some special
creations, including a pistachio and
chocolate opera, chocolate and sea salt
caramel tart and – perhaps ideal for
those Mayfair hedge fund boys – a trop-
ical chocolate financier.
At Claridge’s for one week only starting on 11
A Curling creation October
27
THAN SHWE: UNMASKING
BURMA’S TYRANT
BY BENEDICT ROGERS
Silkworm, £20.99
hhhhi
by Alex Deane
ONE balks at the notion of men so
undeserving as Than Shwe as the sub-
ject of biographies. But evil and tyranny
must not only be loathed – it must also
be understood.
That Shwe, Burma’s ruthless, brutal dic-
tator, is perhaps the foremost proponent
of such qualities in our time, and thus
thoroughly merits the attention given to
him by this scholarly and timely book.
It’s timely because on 7 November
Burma will hold “elections”. They will
be a total sham. That Shwe will win.
That is entirely predictable; just as pre-
dictable as the suffering that his coun-
trymen will endure as a result of his
continued power.
What deserves reflection and indeed
demands our attention is the apathetic
approach that countries around the
world have adopted and continue to
adopt in response to what is happening
there, and the sheer extent of the
human depravity that occurs there as a
result.
Rogers advances a compelling and con-
vincing case that Burma’s tyrant has
committed crimes against humanity.
Rogers does not pull his punches (nor
should he, of course). I unashamedly con-
fess that I had to put this book down a
number of times and let my emotions
settle. 
It is impossible to read of the mas-
sacring of thousands, the torturing and
brutal mutilation of thousands more, of
the use of people as human landmine
detectors, of the massacring of families
and villages, with equanimity.
What Rogers achieves, forensically
and precisely, is the demonstration of
the plain fact that this heap of pain,
indignity and subjugation is done at
Than Shwe’s direct behest. It is difficult
to know at times whether one is read-
ing a biography or a lengthy and graph-
ic criminal indictment.
For years Rogers has dedicated his life
to exposing the tragic wrongdoings in
this former British colony and this, the
first ever biography of the Beast of
Burma, is the ultimate fruit of his
efforts.
At £21 for a paperback copy, it’s most
unlikely to be taken up by the casual
reader – but for anyone with a serious
interest in Burma, or in the way that
evil develops and is allowed to develop,
this book is a must-read.
Alex Deane is the director of Big Brother
Watch, a think tank
TOM AIKENS MENU
Another week, another spe-
cial event courtesy of the
indefatigable Tom
Aikens, who from 4-18
October is cooking up
a special seasonal
menu at his restau-
rants for the London
Restaurant Festival
Tom’s Kitchen Somerset
House and Chelsea, 4-18
October
 28 Lifestyle | Food & Drink CITYA.M. 7 OCTOBER 2010

Warm your cockles with a TIM

big, bold autumn red wine BADHAM

GOING OUT

New world or old, it’s

all about gutsy vinos
right now, writes
Jeremy Hazlehurst

J
AMES JOYCE said that white wine is
lightning, and red wine is beefsteak.
I don’t know about you, but a beef-
steak in a glass is exactly what I
want at this time of year. We asked some
of the City’s most trusted wine experts to
recommend their favourite wines for this
time of year.
“Once the game season starts you want
something substantial in red wine,” Battersea’s Vertilon Bar.
enthusess Alan Griffiths of wine mer-

New breed of
chant Berry Brothers. “The classic autumn
wines are ones from the Rhone and
Languedoc, with spicy flavours.” For a
Rhone wine, he says that rather than go

hotel bars to
for the well-known Chateauneuf-du-Pape
he would look to another producer close
by which makes very similar wines that
cost far less. The 2007 Vacqueyras Les

boost London
Christins has a “deep black colour, lots of
fruit and spices and liquorice to give it
some character” and sells for £13.95 a bot-
tle from Berry’s. From Languedoc
Roussillon he looks to the Pic Saint Loup

region – “they make some spicy interest-
ing wines with structure” – and he recom-
mends a Domaine l’Hortus, £11.95 a
bottle.
Moving out of France and towards
Spain, to Ribera del Duero to be precise,
we have a Collar de Silos, made with the
same tempranillo grape that they use in
Rioja, “but more elegant,” says Griffiths.
With a “warming strawberry flavour”,
and it tastes like a lighter wine than its
14.5 per cent alcohol might suggest. £15.95
a bottle. Down in Italy and over to
Piemonte Berry’s has the Langhe
Nebbiolo, full of “roses and tar” and sell-
ing for £16.50. For new world fans, a wine
called The Scribbler from the Barossa
Valley and made by Yalumba. A combina-
tion of shiraz and cabernet sauvignon, it’s
got “lovely ripeness” more “elegance”
than some Aussies. £12.25.
If you are looking for something to give
you a boost after work (or even at
lunchtime), the lovely Planet of the Grapes
wine bar in Leadenhall Market has a few
suggestions. The bar’s Beans Boughton
also looks towards France, and points out
their Domaine Faiveley Blagny, a classic
100 per cent pinot noir burgundy, “but
not like the fresh ones that you have in
summer, it’s a stronger, deeper beast” at
£25 – they add one a tenner to all their
pieces if you want to drink it there and
then in the bar.
Over in the Rhone, he recommends a
Gevrey-Chambertin Domaine called
Dugat-Py, £75 a bottle. In terms of clarets,
he picks out a Leoville Barton second
growth, £60 for an 06, going up to £85 for
a 1978. Alternatively, another well-known
favourite in the bar is Cos d’Estournel, and
they sell a 1994 vintage for £70.
For those with a thing for the “spice box
flavours” of the big new world reds, he
suggests a Two Hands shiraz that sells for
£40. They also have a De Bartoli shiraz on
by the glass at the moment,whose “cassis
flavours, luscious fruit and velvety tan-
nins” can warm your cockles at £8 for
175m, and £9 for 250ml.
If that’s not your neck of the woods, you
are sure to be within striking distance of a
Corney & Barrow wherever you are in the
City. Rolo Cameron of the Lime Street
branch says that as autumn takes hold he
tends to look for Zinfandels, Italian
Chiantis and big, spicy Rioja Reservas, “or
if you want something old school, then go
into the Crozes Hermitages”. Specifically,
he guides me towards The Gatekeeper
Shiraz, a classic spicy Australian with
blackcurrant and raspberry flavours that
sells for £6.15 for a small glass, or £22.95
for a bottle; and a Crozes-Hermitage
“Millepertuis” Guyot that sells for £28.95
a bottle, or £7.95 a glass.
Corney’s also does a big, chocolately,
spicy Edmeades Mendocino Zinfandel
from California, at £29.95. Back in the old
world, Cameron suggests Chateau de
Lamarque Cru Bourgeois Superieur 2004,
yours for £34.95 the bottle. So there you go
– a selection to put warmth into the cold-
est bones. All you need to do now is to find
a nice fireside to drink them by.
www.bbr.com
www.planetofthegrapes.co.uk
L
ONDON may have cutting edge
nightlife when it comes to clubs and
restaurants but sadly the bar culture
isn’t quite NYC. Fortunately the much
maligned (if pricey) hotel bars are here to
save the day.
In the coming month the scene is going to
get a serious boost with a host of new luxury
hotels soon to open their doors and their
bars. The American Bar, with its classic
Savoy Cocktail Book, will soon re-open along
Just the thing after a with a new art deco Beaufort Bar at the
hard day’s work. restored Savoy. The Amaranto lounge bar
will be debuting at the re-modelled Four
Picture:GETTY Seasons in December, featuring an impres-
sive-sounding wine wall. Up the road The
Dorchester’s little brother, 45 Park Lane, is
due in January and the much anticipated W
Hotel on Leicester Square soon after
The new five-star Corinthia’s Bassoon Bar is
also looking exciting down by Trafalgar and
will be designed by David Collins. Finally, Von
Essen’s Verta Hotel by the Battersea Helipad
has just been cleared for take-off and their
Vertilon Bar promises to whisk you back to
30’s glamour with a jet set crowd.
There are plenty of golden oldies too.
For a modern classic with a colourful twist
try David Collins’ beautiful Blue Room at The
Berkeley, or for old school style with a touch
of contemporary glamour it’s hard to beat
the world class Connaught Bar (similarly a
David Collins creation) and the slightly more
tranquil Coburg Bar with its Bacchanology
menu’s historical insight into your tipple.

Shell out on
little gobs of horror. I fall into the first catego-
ry, and so it is with fanfares and rejoicing that
I read that Rowley Leigh’s much-loved Café
Anglais has opened an oyster bar. They’re sell-
skills are legendary, and Scott’s on Mount For older school still there is the superbly
Street (also in Mayfair) was also given a refined Dukes Bar for the ultimate Martini
modern twist by Mark Hix. Over in the City, made at your table or Library Bar at the
we have the Runner at Green’s on Cornhill, Lanesborough for its Regency gentleman’s

British oysters
ing half a dozen Carlingford Rocks for a rea-
sonable £7.50, Maldon Native No 2s
for £16.50 a half dozen, and a
tasting plate with 12 of the lit-
tle beasties for £23.50. Add a
spot of Picpoul de Pinet (£5
A new bar is a great addition to a glass, £11 a half-bottle
and £21 a bottle – all the
London’s growing seafood scene wines in the oyster bar are
available in half-bottles) and
you are away.
with its spectacular crustacean display and
glasses of Laurent Perrier champagne
to ensure that your lunch goes out
in style. For those willing to
make the trip south of the
river, Wright Brothers in
Borough Market is one of
the best in town, and you
can wash your oysters down
with London-brewed porter,
just like they did in the days
drinking den and Garden Room, a clandestine
smokers’ paradise.
Modern options include the lively Light Bar
and exclusive Bungalow 8 at St Martin’s
Lane and the Miami-esque Long Bar and
stunning Courtyard Garden at The
Sanderson, also home to the intimate and
luxurious Purple Bar. The Met Bar has been
reliving its rock star heritage of late and The
Sanctum Soho rock ‘n’ roll credentials are
improved by its 24-hour Roof Garden Bar.

L
IKE Marmite and the ouevre of Robbie The new Café Anglais bar, of when they were a staple of Newcomers to the scene include the stylistic
Williams, oysters divide opinion, and course, joins a growing list of London’s poorer classes. HUNter 486 at The Arch, the buzzy Bar
strongly. For some they are the perfect London restaurants that have Le Café Anglais, 8 Porchester Boulud at the Mandarin Oriental and the sur-
expression of pure foodiness, something fallen in love with the beautiful Gardens, London W2 4DB; tele- prisingly funky hidden find of Fleming’s
that is best eaten quivering, dressed only with British bivalve. Bentley’s, the classic phone: +44 (0)20 7221 1415, web: Cocktail Bar.
the smallest squeeze of lemon or (if you must) Mayfair oyster bar, was rejuvenated in recent www.lecafeanglais.co.uk. Tim Badham is the founder of concierge
a dab of Tabasco. For others they are snotty years by Richard Corrigan, whose shucking Jeremy Hazlehurst company Innerplace. www.innerplace.co.uk
CITYA.M. 7 OCTOBER 2010 Lifestyle | TV& Games 29

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 CHOICE Watchdog
9pm Traffic Cops
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week; Holiday
Weatherview
12.25am Sign Zone: Panorama
12.55am Sign Zone: Countryfile
1.55am Sign Zone: Wild Wales
2.55am Sign Zone: Antiques
Roadshow 3.55am Sign Zone:
Britain’s Empty Homes: Finding a
property in rural Suffolk. 4.25am-
6am BBC News
6pm Eggheads: Quiz show,
hosted by Jeremy Vine.
6.30pm Strictly Come Dancing
– It Takes Two
7pm Games Today: Highlights
from day four of the
Commonwealth Games.
8pm CHOICE Nigella Kitchen
8.30pm Autumnwatch 2010
9.30pm Autumnwatch
Unsprung
10pm Mock the Week
10.30pm Newsnight; Weather
11.20pm Whites
11.50pm Harry & Paul
12.20am The Apprentice:
You’re Fired!
1.05am 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 The Cuts Are Coming: 7.55pm 4thought.tv 7.30pm Jaguar Adventure with
Tonight 8pm River Cottage Every Day Nigel Marven; Five News
8pm Emmerdale 9pm Dispatches: Bravo’s Deadly Update
8.30pm Coronation Street Mission 8pm Deep Sea Divers; Five
9pm Law & Order: UK 10.30pm CHOICE True Blood News at 9
10pm ITV News at Ten 11.40pm 3 Minute Wonder: 9pm FILM Kiss of the Dragon:
10.30pm London News New Sensations 2010 Martial arts adventure, starring
10.35pm FILM The Matrix 11.45pm Reaper Jet Li. 2001. WATCHDOG
Revolutions: Sci-fi sequel, 12.45am A Family Portrait 10.55pm Police Interceptors BBC1, 8.00PM
starring Keanu Reeves. 2003. 12.50am Mother of Many 11.55pm Cops in Crisis Anne Robinson and Matt Allwright
12.50am The Zone; ITV News 1am King of the Hill 1.25am King of 12.10am SuperCasino investigate why hundreds of thousands
Headlines the Hill 1.45am Who Knows Best: 4.05am Police Interceptors of ordinary drivers are at risk of having
2.50am The Jeremy Kyle Show Getting a Job 2.40am The Hospital 4.55am Animal Rescue Squad their cars seized by the police.
3.45am The Cuts Are Coming: 3.35am Unreported World 4am 5.10am Michaela’s Wild Challenge
Tonight 4.10am-5.30am ITV Hercules 5.25am-6.10am 5.35am-6am Michaela’s Wild
Nightscreen Countdown Challenge

SKY SPORTS 1 ESPN 11pm Family Guy 11.45pm Him 11pm Extreme Trains 12am Ice 9pm I’m Pregnant and 55-
SATELLITE & CABLE

6pm Live Darts 12am Ringside
1am Premier League World
1.30am Time of Our Lives
2.30am Ringside 3.30am
Premier League World 4am
Time of Our Lives
SKY SPORTS 2
7pm Live European Rugby
Union 10pm Ringside 11pm
Time of Our Lives 12am
European Rugby Union 3am
IAAF Athletix Weekly 3.30am
Modern Pentathlon 4.30am-
5.30am Race World
SKY SPORTS 3
7pm Premier League World
7.30pm Live Premier League
Snooker 8.30pm Live PGA
Tour Golf 11pm European Tour
Golf 12.30am Golfing World
BRITISH EUROSPORT
6.40pm Strongest Man
8.40pm Fight Club 11.40pm-
12.25am International Football
7pm Press Pass 2010 7.30pm
Live NBA Basketball 10pm
MMA Live 10.45pm UFC
Unleashed 11.45pm ESPN
Game of the Week 12.15am
ESPN Kicks Extra 12.30am
Press Pass 2010 1am Live
Major League Soccer 3am-
5.30am Live NHL Ice Hockey
LIVING
7pm Baggage 8pm Private
Practice 9pm Nikita 10pm
Criminal Minds 12am CSI:
Crime Scene Investigation
2am Charmed 3am Nothing to
Declare 3.50am Pete Burns’ PA
4.40am The Jerry Springer
Show 5.30am-6am Home
Shopping
BBC THREE
7pm Top Gear 8pm Are You
Fitter Than a Pensioner? 9pm
Kids with Guns – Stacey Dooley
Investigates 10pm EastEnders
10.30pm The King Is Dead
and Her 12.15am Are You
Fitter Than a Pensioner?
1.15am Kids with Guns –
Stacey Dooley Investigates
2.15am The King Is Dead
2.45am E20 3.10am Britain’s
Really Disgusting Drinks
4.10am-4.40am Him and Her
E4
7pm Hollyoaks 7.30pm Friends
9pm The Big Bang Theory
9.30pm How I Met Your
Mother 10pm PhoneShop
10.30pm The Inbetweeners
11.05pm School of Comedy
11.35pm Misfits 12.40am
Scrubs 1.35am Glee 2.15am
Misfits 3.10am What About
Brian 3.50am Samantha Who?
4.15am The Hills 4.35am-6am
Switched
HISTORY
7pm How the Earth Was Made
8pm Ice Road Truckers 10pm
America: The Story of the US
Road Truckers 1am Deep Sea Years-Old 9.30pm I’m
Detectives 2am How the Earth Pregnant and Addicted 10pm I
Was Made 3am Concorde – A Didn’t Know I Was Pregnant
Love Story 4am-5am Specials: Cradle Will Rock
Disappearing Britain 11pm Embarrassing Illnesses
12am I’m Pregnant and 55- NIGELLA KITCHEN
DISCOVERY Years-Old 12.30am I’m BBC2, 8.00PM
8pm How Do They Do It? Pregnant and Addicted 1am I Nigella Lawson demonstrates how to
8.30pm How It’s Made 9pm I Didn’t Know I Was Pregnant get food on the table quickly, featuring
Shouldn’t Be Alive: Two boys Specials: Cradle Will Rock 2am recipes for roast lamb with rosemary
who were swept out to sea. Embarrassing Illnesses 3am and port and Japanese prawns.
10pm Deadliest Catch 11pm The 28 Stone Teenager:
Greatest Tank Battles 12am Shocking Story – One Year
Bear Grylls: Born Survivor 1am Later 4am A Baby Story 5am-
Deadliest Catch 2am Rory 6am Bringing Home Baby
McGrath’s Best of British
Engineering 3am Weaponology SKY1
3.50am Raging Planet 4.40am 8pm Modern Family 9pm An
Days That Shook the World Idiot Abroad 10pm A League of
5.30am-6am How Does That Their Own 10.30pm Football’s
Work? a Funny Old Game 11pm NCIS:
Los Angeles 1am Road Wars TRUE BLOOD
DISCOVERY HOME & 1.50am Premiership’s 50 CHANNEL4, 10.30PM
HEALTH Greatest Goals 2.40am Oops Sookie and Bill travel to Dallas to find
7pm Deliver Me 8pm The 28 TV 3.30am Lost 4.20am the missing leader of the local vampire
Stone Teenager: Shocking Vroom Vroom 5.10am-6am community. Meanwhile, Maryann
Story – One Year Later Sell Me the Answer throws a party for Tara.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
34 18 13 30 6 35 30 
17 7 12
6 
15 20
Place the numbers from 1 to 9 in each empty cell so that each 16 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 8 24 13
   
above or to the left of it. 17 19
You can only use the digits 1-9 15 16    
   and you must not use the
26
3 14  
same digit twice in a block. 20 33 27 32 17
  The same digit may occur 31 23 
10
    more than once in a row or
column, but it must be in a
9
8
21
16
13

45
  separate block. 
7 19
      22 10 4


  ACROSS DOWN
3 Concealment (7) 1 Principal bullfighter (7)
   
  WORDWHEEL T S
6 Nimble (5)
7 Craftiness (7)
2 Arsonist (7)
3 Factions (5)
Using only the letters in the Wordwheel, you have
   ten minutes to find as many words as possible,
U L 8 Dexterous (5) 4 Become used up (3,3)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 9 Concerning those
who are not members
5 High-kicking dance (6)
10 Deciduous tree (3)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E O of the clergy (7)
13 Musical
11 Blue-flowered
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
D Y composition (4)
trailing plant (7)
12 Official who is expected
QUICK CROSSWORD 5 9 7 2 3 1
16 Pitch of the voice (4)
to ensure fair play (7)
6 , 0 2 1 7 $ % 2 2
2 4 1 6 3 9 4 8 SUDOKU          17 Music of the early
14 Central American
4 7 3 9 5 6 8 2 1          20th century (7)
7 $ ( 5 $ ( '
1 6 8 6 9 3 2 canal (6)
5 , 1 6 ( 3 / $ , '         
7 8 2 1 2 5 19 Strainer (5)
$ 1 ' 2 ( 1 /
         15 Line of contrasting
: 5 $ 3 6 5 8 6 7 < 3 5 1 2 8 9 7 5
         20 Of many different colour (6)
$ (
6 7 , 1 7
6 2
6 $ 9 2 <
2 1
3 8
1
4
2 4
8 3
5
2
1
WORDWHEEL          kinds (7)
18 Short formal piece
$ 0 $ 6 + , 8         
* 5 $ 6 6 5 ( / , & 9 2 5 7 1 8 4 6 3 The nine-letter word 21 Similar (5) of writing (5)
8 7 9 5 9 7 8 6         
( * 7
6 7 2 1 (
( ( / &
' 5 $ 0 $ 3 4 3 6 9 4
was CLUSTERED          22 Entrance (7)
 30 Sport CITYA.M. 7 OCTOBER 2010

Results
FOOTBALL
JOHNSTONE'S PAINT TROPHY NORTHERN
SECTION SECOND ROUND
Burton Albion............(0) 1 Rotherham........................(0) 2
Arsenal won’t win title, says Hartson
Walker 83 Bradley 65
Arsene Wenger’s Gunners are well they want to get that monkey off Adams, Steve Bould or Martin Keown

▲
Att: 1,360 Ellison 79 (pen) FOOTBALL
Sheff Wed.....................(1) 2 Chesterfield......................(1) 2 BY FRANK DALLERES equipped to end their five-year wait their back.” mould.
Mellor 12, Tudgay 90 Morgan 10, Davies 84 for silverware in one of the cup com- Arsenal were boosted yesterday by “I think they’re missing someone
Att: 15,003 FORMER Arsenal striker John Hartson petitions. the news that captain Cesc Fabregas like a Paul Merson to open up that
Sheff Wed win 8-7 on penalties.
has written off the club’s chances of “I don’t think they’ll win the and England winger Theo Walcott are link. I know [Andrey] Arshavin does it
COMMONWEALTH GAMES challenging for the Premier League league. I didn’t think that at the start set to return from injury after the but not like Merson used to do it for
ATHLETICS—W Women's Shot Put Final: 1 L Ellery (Aus) this season because he believes their of the season. I think the league’s international break. But Hartson me. And I still think they need that 25
1110pts, 2 J Hamill (Nzl) 979, 3 G Prescott (Eng) 952, 4 B squad is too thin. between two teams: Chelsea and Man believes that Wenger still needs to goal-a-season man. This year I think
Moore (Aus) 951, 5 M Okoko (Ngr) 937, 6 M Mahadevaiah
(Ind) 651, 7 D Malik (Ind) 526, 8 A Oluoch (Ken) 29. Hartson, who is now looking to get Utd,” he told City A.M. enhance his squad with a handful of it’s intriguing to see if [Marouane]
SHOOTING—M Men's Singles 10m Air Rifle Final: 1 G Narang into management having won an 18- “I think they’re good enough to signings in order to bridge the gap Chamakh can come up with the goals
(Ind) 703.6pts, 2 A Bindra (Ind) 698, 3 J Huckle (Eng) 693.5, month battle with testicular cancer, win a trophy and could win one of with Chelsea and United. for them. He’s started very well.”
4 K Parr (Eng) 693, 5 E Gouw (Aus) 692.9, 6 J Hong Ong insists the title is a two-horse race the cups. “I think they’re missing two or John Hartson will be at Waterstones, Jubilee
(Sin) 692.2, 7 J Zhang (Sin) 690.6, 8 T Vitler (Aus) 690.4. between Chelsea and Manchester “Arsene Wenger will realise now it’s three players,” added the Welshman. Place, Canary Wharf today at 12:30pm to
Pairs Double Trap Final: 1 England 189pts, 2 India 188, 3
Malaysia 185, 4 Australia 184, 5 Isle of Man 182, 6 Malta United. been five or six years and, no matter “I think they’re missing a big com- sign copies of his new book, ‘Please Don’t
171, 7 Canada 171, 8 Singapore 160, 9 Niue 111. But the 35-year-old is convinced what he says in the press, I believe manding centre-half in the Tony Go: Big John’s Journey Back To Life’.
DNS: Northern Ireland
SINGLES—550m Pistol Final: 1 O Singh (Ind) 653.6pts, 2 B
Gai (Sin) 649.6, 3 S Hon Lim (Sin) 644.7, 4 S Edirisinghe (Sri)

Goddard keeps
638.3, 5 N Baxter (Eng) 635.7, 6 K Ullah Khan (Pak) 634.2, 7
M Gault (Eng) 632.3, 8 D Moore (Aus) 630. 0.
WOMEN'S—SSingles 25m Pistol Finals: 1 A Sayyed (Ind)
786.8pts, 2 R Sarnobat (Ind) 781.0, 3 P Bibiana Ng (Mal)
778.2, 4 L Yauhleuskaya (Aus) 772.0, 5 L Ryan (Aus) 769.4, 6
S Badrin (Mal) 769.2, 7 J Lydall (Eng) 765.5, 8 L Wachowich
(Can) 757.2.

the gold rush

SWIMMING—M Men’s 200m Backstroke Final: 1 J Goddard
(Eng) 1min 55.580secs, 2 G Kean (Nzl) 1:57.370, 3 A Delaney
(Aus) 1:58.180, 4 C Walker-Hebborn (Eng) 1:59.000, 5 C
Francis (Can) 2:0.070, 6 M Loughran (Wal) 2:0.110, 7 T
Oriwol (Can) 2:0.240, 8 R Bennett (Eng) 2:1.860. 4x200m
Freestyle Final: 1 Australia 7mins 10.290secs, 2 Scotland
7:14.020, 3 South Africa 7:14.180, 4 Canada 7:14.630, 5
England 7:16.570, 6 Malaysia 7:43.530, 7 India 7:46.180.

going in Delhi
50m Butterfly Final: 1 J Dunford (Ken) 23.350secs, 2 G
Huegill (Aus) 23.370, 3 R Schoeman (Rsa) 23.440, 4 M
Patterson (Aus) 23.650, 5 R John Pini (PNG) 23.880, 6 A
James (Eng) 24.290, 7 V Khade (Ind) 24.610, 8 A Mayor
(Sco) 24.630. 100m Breaststroke Final: 1 C Van Der Burgh
(Rsa) 1min 0.100secs, 2 C Sprenger (Aus) 1:0.290, 3 B
Rickard (Aus) 1:0.460, 4 M Jamieson (Sco) 1:0.600, 5 S
Dickens (Can) 1:0.980, 6 G Mark Snyders (Nzl) 1:1.390, 7 K
Gilchrist (Sco) 1:1.430, 8 D Sliwinski (Eng) 1:1.680.
“I came down with a bit of a
▲

WOMEN’S—1100m Freestyle Final: 1 A Coutts (Aus) COMMONWEALTH GAMES

54.090secs, 2 E Seebohm (Aus) 54.300, 3 F Halsall (Eng)
BY JON COUCH tummy bug and had nothing to give
54.570, 4 H Palmer (Nzl) 54.680, 5 A Smith (Eng) 54.910, 6 today, I pretty much couldn’t stand
V Yuen Poon (Can) 55.040, 7 N Hind (Nzl) 55.440, 8 E JAMES GODDARD continued up after my final,” she said.
Saunders (Eng) 56.170. 100m Backstroke Final: 1 E
Seebohm (Aus) 59.790secs, 2 G Spofforth (Eng) 1:0.020, 3 J England’s gold rush in the pool after Meanwhile, Gemma Spofforth
Wilkinson (Can) 1:0.740, 4 S Edington (Aus) 1:0.810, 4= B regaining the 200m backstroke title. began as favourite for gold in the
Hocking (Aus) 1:0.810, 6 G Davies (Wal) 1:1.050, 7 M The 27-year-old, who won his first women’s 100m backstroke, but had
Ingram (Nzl) 1:1.140, 8 S Russell (Can) 1:1.420. 200m gold in Manchester in 2002, swam a to settle for silver behind Seebohm.
Breaststroke Final: 1 L Jones (Aus) 2mins 25.380secs, 2 T
Wallace (Aus) 2:25.600, 3 S Katsoulis (Aus) 2:25.920, 4 M Commonwealth Games record of Elsewhere, Luke Folwell and Reiss
Mccabe (Can) 2:26.460, 5 A (Can) 2:27.210, 6 S Tadd (Eng) 1.55.58 to head off New Zealand’s Beckford delivered gymnastics gold
2:28.480, 7 H Miley (Sco) 2:30.200, 8 K Buchan (Sco) Gareth Kean by a clear two seconds. and silver for England in the men’s
2:31.180.44x200m Freestyle Relay Final: 1 Australia 7mins It was England’s third gold in two all-round individual final, while Steve
53.710secs, 2 New Zealand 7:57.460, 3 England 7:58.610, 4 days after Fran Halsall and Liam Scott and Stevan Watson took
Canada 7:58.920, 5 Scotland 8:6.850, 6 Wales 8:8.500, 7
Northern Ireland 8:13.020, 8 India 8:56.590. Tancock both won their events on England’s first shooting gold of the
WEIGHTLIFTING—W Women's Group A 58kg Final: 1 R Tuesday. Games with victory in the men’s dou-
Yumnam (Ind) 197pts, 2 S Lee (Aus) 192, 3 Z Smith (Eng) “I knew I had a one-minute-55 time ble trap pairs event.
188, 4 C Ciana Agricole (Sey) 187, 5 E Quarton (Can) 185, 6 in me, but I still think I can go quick- Sixteen-year-old Zoe Smith won
A Moniqui (Can) 184, 7 R Kari (PNG) 178, 8 P Tzuche (Cmr)
171, 9 H Jewell (Eng) 170, 10 F Akther (Ban) 16.
er,” said Goddard, who missed bronze in the women’s 58kg
August’s European Championships in weightlifting and England’s Myroslav
TODAY’S DIARY Budapest because of a virus. Dykun took the men’s 66kg Greco-
“I’ve had a shoulder problem for Roman wrestling gold.
European Under-21 Championship Play-Off First Leg the last year, it’s been playing up for
Iceland v Scotland (8pm)........................................................................................
Switzerland v Sweden (7.15)..................................................................................
the last few days, and I’m so happy. I C’WEALTH GAMES | MEDALS TABLE
Blue Square Bet Premier knew it was going to be quite a tight
Forest Green v Grimsby (7.45)................................................................................ field. I’m so chuffed with the time.” G S B Total
COMMONWEALTH GAMES Halsall, meanwhile, blamed a 1 Australia 21 15 10 46
touch of Delhi belly for missing out 2 India 11 8 5 24
2010 Commonwealth Games (Delhi, India).
on the chance for a double gold after 3 England 6 11 9 26
settling for bronze in the women’s 4= South Africa 3 2 4 9
SPORTS EDITOR JON COUCH 100m freestyle behind Australian pair 4= Malaysia 3 2 4 9
email sport@cityam.com Alicia Coutts and Emily Seebohm. Goddard won England’s third gold in the pool in two days. Picture: ACTION IMAGES

Rookie Finn nets top ICC SPORT | IN BRIEF

Benayoun faces lengthy lay-off Wozniacki closes in on No1 spot

gong but Swann edged out

FOOTBALL: Chelsea have been dealt
another injury blow with the news that
midfielder Yossi Benayoun faces several
months on the sidelines with an Achilles
problem.
The Israel captain, 30, has been out
for three weeks with a calf strain but a
Finn, 21, played in six Test matches Swann, meanwhile, missed out scan undertaken while on international
▲
TENNIS: Caroline Wozniacki will become
the new women’s world No1 if she beats
Czech Petra Kvitova in the last 16 of the
China Open today.
The Dane eased past Sara Errani 6-4,
6-2 second round win over Sara Errani in
Beijing yesterday and needs one more
win to leapfrog Serena Williams at the

CRICKET
during the voting period, taking 27 despite taking 49 wickets in Tests and duty for the Euro 2012 qualifiers against top of the rankings.
BY JON COUCH wickets at an average of 21.85. 28 in one-day internationals during Croatia and Greece, has revealed a tear Briton Andy Murray is also in action
ENGLAND fast bowler Steven Finn Receiving his award from leg- the qualification period. He was in the Achilles tendon. today, against Spain’s Albert Montanes.
was handed a pre-Ashes boost yester- endary West Indies bowler Joel short-listed along with Tendulkar, fel-
day after being named the ICC Garner, Finn said: “It’s a great honour low India batsman Virender Sehwag Raikkonen no to F1 return Froch all set for title bout
Emerging Player of the Year. to win this, an award I wasn’t expect- and South Africa’s Hashim Amla. FORMULA ONE: Former F1 world cham- BOXING: Carl Froch’s Super Six fight
The 6ft 8in Middlesex paceman ing and I’m very pleased and hon- l Meanwhile, the appeals by the pion Kimi Raikkonen has dismissed sug- against Arthur Abraham next month has
beat off competition from Pakistan’s oured to be playing Test match cricket three Pakistan cricketers against their gestions he could make a return with been confirmed as a world title bout.
Umar Akmal, Sri Lanka’s Angelo for my country. I’ve enjoyed the last suspension over ‘spot-fixing’ allega- Renault for next season. The Nottingham fighter lost the WBC
Matthews and Tim Paine, of Australia, few months representing my country tions will be heard in Doha over two The 2007 champion now drives in the super-middleweight title to Mikkel
to land the top gong in Bangalore. and I hope it continues. days starting in on 30 and 31 October. world rally championship but was Kessler in April but an injury to the Dane
But there was no such luck for spin- “Next up is the Ashes and I think Captain Salman Butt, Mohammad approached about making a comeback means the title is now vacant.
ner Graeme Swann, who was pipped we’re well prepared to win the series Amir and Mohammad Asif have been by Renault boss Eric Boullier. Froch will also get the chance to
by Indian legend Sachin Tendulkar to – we’ve got a settled side ready to go charged by the ICC following allega- But the Finn said: “Its 100 per cent cer- defend the belt on 27 November with
the ICC Cricketer of the Year prize. for this winter.” tions made in the News of the World. tain I will not drive for Renault in 2011.” Kessler set to await the winner.
CITYA.M. 7 OCTOBER 2010
Premier League chiefs and Carragher
set to give takeover the green light
▲
PREMIER LEAGUE
BY JON COUCH
THE proposed takeover of Liverpool
could be granted approval as early as
Friday, the Premier League confirmed
last night.
A £300m offer to buy the club from
New England Sports Ventures
(NESV) – principally owned by Boston
Red Sox chief John W Henry – was
accepted by the Liverpool board of
Owners may yet halt deal
Hicks and Gillett could
mount legal challenge as
chairman gives go-ahead,
says Frank Dalleres
LIVERPOOL’S sale to American group
New England Sports Ventures could
be delayed or even derailed by a legal
challenge from current owners Tom
Hicks and George Gillett, sports busi-
ness experts warned last night.
Reds chairman Martin Broughton
is adamant the board has the right to
sell the club to John Henry’s NESV for
£300m, even against the owners’
wishes, and is “confident” of being
proved right in court next week.
Hicks and Gillett have opposed the
deal because they stand to lose
around £140m on their investment,
and the case is now expected to go
before a judge after the duo failed to
remove Broughton and two other
board members.
That move has bought Hicks and
Gillett extra time to either secure refi-
nancing of the £280m they must pay
Royal Bank of Scotland by the end of
next week, or come up with another
buyer willing to pay a higher price.
And while neither of those plans
appear to be very far advanced, foot-
ball finance expert Joe McLean of
Grant Thornton believes it could
cause enough controversy to force
Henry: Self-made millionaire
who brought Red Sox glory
▲
PROFILE
BY FRANK DALLERES
PROSPECTIVE Liverpool owner John
W Henry knows what it takes to
revive the dwindling fortunes of a
world famous sporting name, having
done as much with Boston Red Sox.
Henry, 61, and his holding compa-
ny New England Sports Ventures took
control of the baseball franchise in
2002 and by 2004 had ended their 84-
year wait to recapture the World
Series. Since then they have repeated
the feat, in 2007, re-establishing the
team’s reputation as one of the pre-
eminent forces in the game.
Unsurprisingly, those achieve-
directors yesterday despite strong
opposition from current owners Tom
Hicks and George Gillett.
League bosses have been kept
informed of developments and have
revealed it would be more than happy
to give the takeover the go-ahead.
It said in a statement: “The board of
the Premier League has been kept
fully informed of developments
regarding the potential sale of
Liverpool FC by the chairman and
RBS into relaxing their stance.
“If Hicks and Gillett put up a huge
fight, which they may do, the bank
may back off and give them another
month to find a solution,” McLean
told City A.M. “I’d imagine there’s lots
of frantic behind-the-scenes activity
going on. If they get refinancing it’d
have to be personally borrowed
ments have made Henry and NESV
one of the most popular regimes in
the Major League Baseball. Last year
Sports Illustrated magazine named
them the best of the 30 MLB owners.
Liverpool owner Tom Hicks, who
owns the Texas Rangers, was 29th.
Henry has toyed with the idea of
moving the Red Sox away from their
iconic home, Fenway Park, but has
ultimately resisted the temptation to
transfer the team to a more modern
stadium. Similar decisions face the
Anfield hierarchy, with work on a
proposed new ground at Stanley Park
currently on ice.
A self-made multi-millionaire,
Henry amassed his fortune in hedge
senior executives of the club and has,
accordingly, been made aware of a
number of potential prospective own-
ers in recent weeks.
“We can confirm that Liverpool FC
has formally notified the Premier
League of an intended change of con-
trol and that the board has undertak-
en to complete all the necessary
processes by Friday so that the sale of
the club can proceed.”
Meanwhile, Reds defender Jamie
resources. They cannot use the club’s
future incomes to secure borrowing.”
Graham Shear, a partner at Berwin
Leighton Paisner, told City A.M.: “My
gut feeling is the owners are running
out of time. They could buy more
time with a legal dispute, or end up
dealing directly with bidders and try-
ing to get a better price.”
funds and was estimated to be worth
£540m four years ago. That is thought
to have been hit by the downturn but
NESV is valued at nearly £1bn.
He was born in Arkansas, where he
grew up on a farm before taking over
the family business aged 25. He now
lives in Florida but returns to Boston
during the baseball season.
Henry’s sporting interests spreads
to NASCAR; he bought a 50 per cent
stake in Roush Fenway Racing in
2007.
Henry is joined in NESV by 16 other
individuals, with close ally Tom
Werner, 60, a friend of ex-US presi-
dent Bill Clinton and the current Red
Sox chairman, chief among them.
Sport | Liverpool takeover
Carragher has thrown his weight
behind the proposed takeover.
Under new boss Roy Hodgson, the
Reds are currently in the bottom
three of the Premier League after suf-
fering their worst start for 53 years.
And Carragher said: “Everyone
knows it’ll be a good thing for the
club. Hopefully it will be sorted soon-
er rather than later and we can start
improving results, which is what we
need to do.”
Hicks and Gillett
stand to lose
around £140m on
their investment.
Picture: PA
Key to Broughton’s position is his
belief that he has a signed undertak-
ing from Hicks and Gillett giving him
the right to sell the club if he finds a
suitable owner. Shear added: “The
question of whether the board can
force through a sale depends on to
what extent possible contractual
undertakings take primacy.”
BOB DIAMOND
THE Liverpool board is being
advised on the sale of the club by
Barclays Capital. Co-head of
European M&A Mark Warham is
heading up the search for a buyer
and is believed to be advising the
club on the proposed takeover by
New England Sports Ventures
(NESV).
Warham left Morgan Stanley
last year to take up the post. The
BarCap team has recently worked
advising BHP on their hostile bid
for Potash.
The market was yesterday spec-
31
FANS VIEW
We’re not
anti-USA,
insist fans
LIVERPOOL fans’ group, Spirit of
Shankly (SoS) say they have greeted the
news of John W Henry’s imminent
takeover with “cautious optimism”.
The group have organised a num-
ber of protests against the current
ownership, but spokesman Jay
McKenna insists their anger is direct-
ed solely at Hicks and Gillett and that
they are not anti-American.
“It is not about who you are or
where you come from, it is about
being the right owner for the club,”
he said. “I think there is cautious opti-
mism and hopefully the football club
will finally get rid of Hicks and
Gillett. After three troublesome years
supporters will want to see the back
of them quickly.”
Of the new owners, he added: “I
would like to know a bit more about
the supposed sale process and who
will be in charge of the club. We
would like them to engage with sup-
porters.
“They need to be saying the right
things – but Hicks and Gillett said all
the right things and failed to deliver.
“Supporters will be watching quite
keenly and we would like them
(NESV) to come out and alleviate con-
cerns. We deserve to know what is
going on.
“We have fought long and hard to
get rid of Hicks and Gillett and we
don’t want more of the same.
“So we wait with baited breath. We
hope these people are the right owners
to take over Liverpool Football Club.”
Meanwhile, ShareLiverpoolFC – the
group which is campaigning to see
the club run by supporters – have nat-
urally expressed sceptisism of the
move.
Board member Rogan Taylor said:
“I don’t feel any great excitement
about the prospect, I must admit.
“John Henry’s got a lot of respect in
the sports world over in the States.
Our problem is, will they understand
anything about the way it actually
works here and the kind of culture on
which this stuff grows?
“I think that’ll remain a concern
for a very long time, even if he does
take over the club.”
ulating Bob Diamond could have
been involved in putting Red Sox
owner John Henry in touch with
Liverpool.
The BarCap boss is a massive
Red Sox fan and a close friend of
former banker Henry.
Representing NESV is New York-
based sports consultancy firm
Inner Circle. According to its web-
site, the firm advised Liverpool on
its refinancing and stadium financ-
ing in 2007 and 2008.
They have also been a part of
deals involving Setanta Sports,
Real Madrid and Sunderland
Football Clubs.
Nigel Boardman is the legal
adviser to Liverpool. The partner at
Slaughter and May specialises in
corporate deals.
He was involved in FirstGroup’s
disposal of GB Railfreight in June
and advised Asda on an agreement
with Dansk Supermarked to buy its
wholly owned subsidiary Netto
Foodstores.
Steve Dinneen
 Sport
32 CITYA.M. 7 OCTOBER 2010

“THEY’RE MISSING
SOMEONE LIKE A MERSON”
JOHN HARTSON DELIVERS
HIS VERDICT ON ARSENAL’S
TITLE CHANCES: P30

WE’LL LEAVE
YOU DEBT-FREE
FOOTBALL Liverpool FC to its rightful place in

▲
BY FRANK DALLERES
LIVERPOOL’S prospective owners
New England Sports Ventures last
night eased supporters’ fears by
promising their takeover will leave
the club debt-free.
The American group, led by hedge
fund millionaire and Boston Red
Sox owner John Henry, have
pledged that their estimated
£300m bid will wipe out any exist-
ing debt at Anfield. And, crucially,
they have vowed not to load any
extra borrowing onto the club in
order to complete the buyout, as
current owners Tom Hicks and
George Gillett did in 2007.
Hicks and Gillett still hope to
delay or overrule the board’s deci-
sion to sell to Henry and NESV, but
the bitter dispute now seems cer-
tain to be decided in court.
Confirming their bid had been
accepted, the American group said
in a statement: “NESV wants to cre-
ate a long-term financially solid
foundation for Liverpool FC and is
dedicated to ensuring that the club
has the resources to build for the
Boston Red Sox future, including the removal of all
owner John Henry acquisition debt.
has made his pledge “Our objective is to stabilize the
to Liverpool. club and ultimately return
Picture: PA
English and European football, suc-
cessfully competing for and win-
ning trophies.”
NESV’s bid of around £300m
would clear all the debt owed to the
Royal Bank of Scotland, including
fees for late payment that Hicks
and Gillett have incurred. Their
loan is due for repayment on Friday
15 October, and time is running out
for them to refinance.
Highly significant is NESV’s prom-
ise not to load further debt onto the
club. Hicks and Gillett’s borrowings
have crippled their ability to invest
in Liverpool, contributing to the
team’s dip in performance. Last sea-
son they failed to qualify for the
Champions League and they are
currently amid their worst to a new
campaign for 57 years.
Manchester United’s owners the
Glazer family have also attracted
huge criticism for their leveraged
buyout of the club in 2005. Old
Trafford debts are estimated to be
around £700m and spending on
players has been slashed in the last
18 months.
Liverpool are, however, likely to
escape a points deduction even if
RBS call in Hicks and Gillett’s loan,
as the club itself is solvent.
WHAT NEXT FOR BID? PAGE 31

Captain Moody faces race Westwood turns his back

on the PGA Tour millions
to be fit for All Blacks clash play-offs a fortnight ago, but
▲

GOLF
Westwood has vowed to turn his
weekend, which is obviously very 20 victory over the Wallabies in RYDER CUP hero Lee Westwood will back on the fortunes across the pond
▲

RUGBY UNION
BY JON COUCH
ENGLAND captain Lewis Moody faces
a race against time to be fit for the
first autumn Test against New
Zealand at Twickenham after picking
up a facial injury playing for Bath at
the weekend.
The 32-year-old is likely to be out for
four weeks after suffering bruising to
his eye following a collision with
Gloucester full-back Charlie Sharples
in the 18-3 defeat on Friday night.
“Lewis took a serious knock at the
tough on him. He was just getting
used to the Bath style of play, and it’s
equally frustrating for the rest of us to
lose him at this stage in the season.
“We will of course make sure he
receives the best possible attention to
get him back on the field as, and
when, he’s ready.”
Coach Martin Johnson gave Moody
the nod to replace Steve Borthwick as
captain for the summer tour of
Australia after the Saracens lock suf-
fered a knee injury.
He led the side to a memorable 21-
Sydney and was expected to keep the
captaincy for the four-match series
against New Zealand, Australia,
Samoa and world champions South
Africa this autumn.
His absence though would leave
Johnson short of candidates to take
the captain’s armband for the first
game against the All Blacks on 6
November.
Centre Mike Tindall, fly-half Jonny
Wilkinson and No8 Nick Easter are
among the leading candidates with
Borthwick left out of the elite 32.
continue to fly the European flag in
2011 after snubbing the chance to
play on the American PGA Tour.
The 37-year-old moved up to second
in the world rankings after helping
Europe retain the Ryder Cup at the
weekend.
And he could even depose Tiger
Woods as the world’s No1 player with
a first or second finish at the Dunhill
Links Championship, which starts
today.
World No5 Jim Furyk earned more
than £7m by winning the FedEx Cup
and put his family first.
“The FedEx Cup sits right in the
middle of the kids summer holidays
and I like going on holiday with them.
“I don’t want to be dictated to by
having to go to America to play FedEx
Cup when it doesn’t really mean that
much to me. It doesn’t mean enough
to me anyway.”
Westwood is one of nine European
Ryder Cup heroes, plus captain Colin
Montgomerie, to play on the Scottish
Links’ this week with the finale tak-
ing place at St Andrews on Sunday.
Some of our investments
aren’t meant to make a profit.
Kali lives in one of Delhi’s worst
slums. Put to work as a small child
scavenging rubbish, the pittance she
made went on abusing correction
fluid. There was no time or money
for school.
Now Kali’s life is changing with the
help of Street to School, an Aviva
project that gets street children
into education. She attends a local
centre where she’s gradually being
prepared for full-time school.
Over the next five years, we’re
committed to helping half a million
children like Kali. She may never be
an Aviva customer, but we think
she’s a great investment all the same.

youarethebigpicture.com