Issue 1,281 Thursday 9 December 2010

BUSINESS WITH PERSONALITY FREE

www.cityam.com

EU TO REWRITE XMAS GIFTS

SPECIAL
TRADING RULES BUY
WHAT TO
YOUR
LOVED
▲

FINANCIAL MARKETS
BY ALISON LOCK
LONDON’S pre-eminence as Europe’s leading
commodity marketplace is under threat as
ONES
P27-34
proposed EU regulatory changes home in on
derivatives trading.
A new consultation on the European
Commission’s markets in financial instru-
ments directive (MiFID) is pushing for greater
regulation of trading platforms for shares,
bonds and derivatives.
In commodity markets, it would force
traders in both exchange-traded and over-the-
counter derivatives to reveal their positions
and give regulators the power to cap these if
deemed unsafe, or even ban trading in a par-
ticular product altogether.
Europe’s move follows similar US proposals
to curb price spikes in key commodities such
as grain, cocoa and oil, which it blames on
speculators.
But as the most liquid market in Europe for
many commodities, London stands to lose out
most from the planned restrictions in trading.
Michel Barnier, the EU commissioner in
charge of the reforms, said yesterday that “if
someone is doing something which affects
the market then he or she must be held to
account. Hyper-speculation is scandalous.”
The wide-ranging MiFID reforms propose
making all derivatives eligible for clearing –
including commodities – trade on electronic
platforms, forcing bank-to-bank trading out in
the open.
It would give EU regulators “complete pow- EU commissioner
ers to manage and control positions in com- Michel Barnier wants
modity derivatives more rigorously” to reform. Picture: GETTY
“reduce systemic risk and combat disorderly
trading,” according to the consultation.
Industry figures reacted with dismay. the Association of Financial Markets in cause investors to take their money elsewhere.
“Complaints that speculation leads to mar- Europe, described the proposals as “a blunder- “If these bans are necessary – and I’m not con-
ket manipulation misunderstands what buss approach”. vinced – we need to make sure the decisions
drives the commodity markets, which is fun- “One person’s speculation is another’s stay in London and out of Brussels,” he said.
damental demand and supply,” said Andrew investment strategy. This definition could pick In a separate consultation yesterday, Brussels
Moorfield, head of oil and gas at Lloyds up on perfectly legitimate trading,” he said. proposed toughening penalties across the EU
Banking Group. Syed Kamall, MEP for London, said that over- for rule breaches in the financial services sector.
Rob McIvor, communications director at regulating European financial markets could AT A GLANCE: P2; ALLISTER HEATH: P2

VISA HIT BY WEB PROTEST

FINANCIAL SERVICES been placed at risk. While we have seen lim- Meanwhile, IT company Datacell threat-
▲

BY MARION DAKERS
SUPPORTERS of the whistle-blowing website
Wikileaks brought down several payment
processing websites yesterday and threat-
ened to attack other financial services.
Visa’s website was suspended and
Mastercard’s online services were malfunc-
tioning yesterday after activist group
Anonymous attacked the websites as
revenge for the companies blocking
Wikileaks transactions earlier in the week.
Mastercard said yesterday: “Our core pro-
cessing capabilities have not been compro-
mised and cardholder account data has not
ited interruption in some web-based servic-
es, cardholders can continue to use their
cards for secure transactions globally.”
Visa said its homepage was “experiencing
heavier than normal traffic”.
A group called Anonymous, which coordi-
nated the attacks via Twitter with the mes-
sage “FIRE FIRE FIRE”, has since seen its own
website and Twitter account disabled.
The group released a statement claiming
it overwhelmed the financial websites’
servers with fake visits.
It named Amazon, Paypal and EveryDNS
as other targets for attacks, after they pre-
vented Wikileaks from using services.
ened Visa and Mastercard with legal action
yesterday, claiming the firms’ stance on
Wikileaks was damaging its business.
Wikileaks founder Julian Assange is set to
remain in UK police custody until a court
hearing on 14 December, after he was
detained on Tuesday under a Swedish arrest
warrant for alleged sexual offences.
The Wikileaks webpage was not function-
ing last night, though the 250,000 leaked
diplomatic papers remained available on
mirror sites.
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04/10/10 - 31/10/10 is 110,406

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 2 News
City out with a whimper – not a bang
EDITOR’S LETTER
ALLISTER HEATH
ANOTHER day, another regulatory
assault on the City from Brussels. The
latest version of the Mifid proposals, if
implemented, could chase away trad-
ing from Europe. It would be yet
another self-inflicted goal, destroying
jobs, prosperity and opportunities. No
wonder, therefore, that as a report
from Policy Exchange reveals this
morning, many finance professionals,
especially the younger ones, are con-
sidering leaving Britain.
This is a nuanced, yet grimly realis-
tic piece of work, backed up by YouGov
polling. Not everybody is planning to
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WHAT THE OTHER PAPERS SAY THIS MORNING
FRESH WOES FOR DE LA RUE OVER
FRENCH OFFER
De La Rue first received an £820m
takeover approach from François-
Charles Oberthur Fiduciaire, a French
banknote printing rival, as long as
eight weeks ago, it emerged on
Wednesday. The disclosure comes as
the crisis-hit FTSE 250 company
defends itself against criticism from
some shareholders that it should
have made public before Monday a
subsequent £896m approach from
Oberthur on November 10.
RICH SHOULD GIVE MORE TO CULTURE,
SAYS MINISTER
The wealthiest Britons are being
urged to join a “new generation” of
cultural philanthropists after the gov-
ernment announced an £80m pack-
age to boost private giving to the arts.
In the wake of spending cuts that
have seen public funding to the arts
quit. London won’t collapse. But its
findings are nevertheless chilling – at
least a tenth of the City is directly
under threat, and that is not even
including the massive missed opportu-
nities as centres around the world
build staff and scale that could have
been based here.
Of financial services professionals
polled, 43 per cent have considered or
are considering whether to leave the
UK. Over a quarter of those (11 per cent
of the total) are either definitely
departing or are likely to do so soon, a
huge proportion. For individuals, the
most important reasons are living
costs (86 per cent of respondents), poor
quality of life (69 per cent), a weak eco-
nomic outlook in Britain (67 per cent)
and tax (63 per cent). So much for
London being some kind of paradise of
great restaurants, social life, tolerance
and vibrancy – young professionals are
much more likely to wish to relocate
than their elders, who are more tied
down by family.
There is an even bigger threat: 25
Brussels calls
for criminal
punishments
▲
REGULATION
BRUSSELS may demand that coun-
tries impose criminal penalties for
breaking some financial rules, in a
bid to toughen up regulation across
the European Union.
In a second consultation paper yes-
terday about financial penalties, EU
officials said there was too much
variation in sanctions between coun-
tries.
One proposal is for Brussels to set
minimum penalties across the
board – including the requirement of
criminal sanctions for the most seri-
ous crimes. The consultation is open
until 19 February.
At the moment, banking sector
penalties range from less than
€150,000 (£126,000) in several coun-
tries, to unlimited fines in others.
In the securities sector, only 18
countries have fines for insider trad-
ing. The maximum levels range from
more than €1m to less than €200,000.
slashed, Jeremy Hunt is looking
across the Atlantic to find a new bal-
ance between public support and pri-
vate giving.
BLAIR CALLED BACK BEFORE IRAQ
INQUIRY
Tony Blair has been recalled before
the Iraq Inquiry as Sir John Chilcot’s
committee enters a final round of evi-
dence gathering before publishing its
report early next year. The former
prime minister is one of a clutch of
key figures that will be returning to
answer questions, provide “more
detail” and clarify issues that have
arisen as Sir John’s team has drafted
conclusions.
INVESTOR LOBBY GROUP JOINS
HERMES DEBATE
Deminor, the shareholder lobby
group, has stepped into the gover-
nance debate between Hermes
International and LVMH, to explain
the stakebuilding in its smaller Paris-
based rival.
per cent of senior managers polled
thought it likely that over the next few
years their organisation would move
operational teams out of the UK, with
just two per cent believing that their
firm would boost UK operations.
Slightly more reassuringly, only two
per cent of firms are planning or likely
to relocate entirely, with another eight
per cent unsure – but that still means
the loss of thousands of jobs mini-
mum. So far, there have been two kinds
of departures: the report highlights the
20 or so major firms that have already
relocated their global or European
headquarters, often for tax reasons; in
some cases, they have retained the
majority of operations here but not
always. The second kind has seen firms
move completely, led by an exodus of
hedge funds to Switzerland. During
2009 at least 498 directors of UK compa-
nies changed their addresses to one of
Jersey, Guernsey or the Isle of Man with
an additional 91 UK companies moving
their registered address there.
London’s financial and business serv-
AT A GLANCE: EU PLANS FOR TRADING OVERHAUL
● MARKET STRUCTURE
- Introduce a new regulatory
category of organised trading
facility for all trading outside
current MiFID categories.
- This should become a fully
fledged regulated multilateral
trading facility if volumes are
above a certain threshold.
- A new sub-regime for broker
crossing networks inside banks
to cover all types of financial
instruments.
- If a specific derivative is eligi-
ble for clearing but no clearer
is willing to clear it then trad-
ing could be banned until
clearing is possible.
- Supervisors should have
powers to intervene at any
stage during the life of a deriv-
ative contract.
- Supervisors could require any
holder of a contract to provide
a full explanation for the posi-
tion, provide all relevant docu-
mentation, reduce the size of
the position in the interest of
an orderly market and investor
protection.
- EU regulators to propose
standards for setting position
US SET TO CLEAR FIRST OBESITY DRUG
IN DECADE
The first new anti-obesity treatment
in a decade could be approved for
widespread use within months.
Contrave, made by American compa-
ny Orexigen Therapeutics, includes
an appetite suppressant and a compo-
nent to prevent addiction. A Food and
Drugs Administration committee rec-
ommended last night that the US reg-
ulator should approve it, despite
concerns about its effect on the heart.
NEWS CORP IS TARGETING EDUCATION
FOR GROWTH
News Corporation, the parent compa-
ny of The Times, yesterday signalled
its intention to “disrupt” the educa-
tional publishing market after identi-
fying it as a growth opportunity. The
company is examining ways of
improving the way students absorb
knowledge.
CITYA.M. 9 DECEMBER 2010
US bond prices
tank following
ices industries are essentially a labour
market agglomeration. While the UK’s
time zone is useful, as is the English
tax cut pledge
language, other locations share these
advantages (and everybody now oper-
▲
US ECONOMY
ates in English in many multinationals,
regardless of country). London’s real US bond prices fell again yesterday
selling point is the depth of its mar- after suffering their fastest sell-off in
kets, especially the labour market for 18 months, as traders fretted over the
financial professionals. There is no effects of President Barack Obama’s
obvious reason why this agglomeration move to extend some of George W
should take place in the UK: there used Bush’s tax cuts.
to be other such clusters across Britain Yields on 10-year government bonds
(for example, steel-making or ship- jumped to 3.24 per cent, the highest
building) which subsequently moved to level since June, as the price tumbled.
other countries, such as China. History Traders’ distaste for US bonds meant
is not actually that important (Silicon buyers at a $21bn (£13.3bn) 10-year
Valley isn’t steeped in medieval her- bond auction yesterday commanded
itage) and no guide to an economy’s yields of 3.34 per cent, the highest level
future (or else Canary Wharf would since May.
still be full of dockers). Agglomerations The Treasury is due to sell $13bn in
are self-reinforcing: success sucks in 30-year bonds today.
ever more business, but a loss of Investors bought into the dollar,
momentum can easily turn into a rout. which rose 0.17 per cent against a bas-
If the City goes out, it will be with a ket of currencies, in the wake of
whimper, not a bang. Obama’s decision to bolster the econo-
allister.heath@cityam.com my with tax cuts.
limits for derivative contracts 1 minute. - If an off-exchange, physically
traded on and off exchanges
and define when such limits
should be triggered.
- Extend post-trade reporting
rules to depository receipts,
exchange traded funds, certifi-
settled contract is like an
exchange traded contract and
standardised then it should
- Curbs on HFT firms allowing
others to use their systems.
- HFT trading would require
cates issued by companies.
- A tailored pre and post-trade
transparency regime should be
also be centrally cleared.
- Emission allowances would
not be classified as a financial
new risk controls like circuit introduced for all bonds, struc- instrument and therefore
breakers, stress testing to tured products with a prospec- come under MiFID.
ensure resilience of systems. tus, all derivatives eligible for ● TRANSACTION
- Operators of HFT trading central clearing off-exchange REPORTING
venues would have to give trades could be flagged and - Transaction reporting to
equal and fair access to high identified. supervisors will likely be
speed trading. ● DATA CONSOLIDATION widened to all financial instru-
- Regulators would have pow- - MiFID could be amended to ments traded on platforms.
ers to impose minimum tick set up a mandatory consolidat- ● SUPERVISORY ISSUES
sizes on HFT orders. ed tape for post-trading trans- - Stricter rules on introducing
- New multilateral trading facil- parency; to require all firms new financial products could
ities would have to put in place which execute transactions to be introduced such as stress
same market surveillance report through an approved testing.
requirements as exchanges. venue. - There should be mandatory
● PRE- AND POST-TRADE - Exchanges, trading venues recording of client orders for a
TRANSPARENCY would be required to “unbun- minimum of three years
- Remainder or stub of an dle” prices data to cut costs of - A provision in MiFID letting
order sent to dark pools could creating a consolidated tape of a member state impose extra
not remain in the dark. prices. requirements exceptionally on
- Post-trade share prices ● COMMODITY an investment firm from
should be published “as close DERIVATIVES MARKETS another EU state.
to instantaneously as is techni- - There is a need for a position- - Supervisors should have
cally possible”; reduce deadline reporting obligation by cate- powers to temporarily ban an
for real time reporting of exe- gories for traders for contracts activity, suspend or replace
cuted prices from 3 minutes to trade on all EU venues. management of a firm.
FORTUNE BREAK-UP COULD LEAD TO HEDGE-FUND VEHICLES FACE TEST
DIAGEO BID The ability of hedge funds to raise
Fortune Brands, the maker of Jim funds via the stock market will be
Beam bourbon and Titleist golf balls, tested this week as two vehicles from
will split itself up into three separate London’s Brevan Howard Asset
businesses after pressure from activist Management and CQS Management
investor William Ackman, who has list on the London Stock Exchange.
built up an 11per cent stake. The US- The sector’s track record has been
listed company will spin off its home mixed, and analysts and people with-
and security division as a publicly in the hedge-fund industry say the
traded company and sell or spin off its two offerings, each expected to raise a
golf unit, fuelling speculation that its couple million dollars, should revive
core liquor business could be targeted interest in listed versions of hedge
by predators, including drinks giant funds and funds-of-hedge-funds.
Diageo.
NOBEL CEREMONY TURNS INTO
FSB: INCREASE VAT THRESHOLD TO GLOBAL SHOWDOWN
CREATE JOBS A ceremony Friday to mark the award
Up to 35,000 jobs could be created if of the Nobel Peace Prize to Liu
the threshold at which small firms Xiaobo, a jailed Chinese dissident, is
start to pay VAT was increased, says turning into a global showdown.
the Federation of Small Businesses China is preventing Mr. Liu, his fami-
(FSB) after a report by the Centre for ly and friends from attending the cer-
Economics and Business Research. emony in Oslo.
CITYA.M. 9 DECEMBER 2010 News 3

Profits down 83pc NEWS | IN BRIEF

McDonald’s growth disappoints

at troubled hedgie
McDonald’s reported a smaller-than-
expected rise in global sales at estab-
lished restaurants in November as
demand was weaker than anticipated in
its key domestic market and Japan.

Marshall Wace
Worldwide November sales at restau-
rants open at least 13 months were up
4.8 per cent. In the US, sales were up
4.9 per cent. Wall Street had expected
global sales to rise 5.6 per cent and US
sales to increase 5.1 per cent. Same-
restaurant sales in Europe were up 4.9
HEDGE FUNDS reporting period between September Former Liverpool chairman Broughton wants to bid for Tote Picture: GETTY per cent, while sales in the Asia/Pacific,
▲

BY MARION DAKERS
LONDON-BASED hedge fund Marshall
Wace saw its profit and bonus pool
plunge 83 per cent last year, as the
firm’s investments reeled from the
continuing global financial crisis.
The firm made £66.6m in fees for
the 12 months to February, according
to papers filed at Companies House,
leading to a pool of £45.5m to be
shared between members.
Marshall Wace’s fund managers
shared £261.4m in the previous
Marshall Wace joint
founder Paul Marshall
saw a dramatic fall in
fees and wages at the
hedge fund in 2009
2007 and February 2009, on the back
of £315.5m in fees.
The £45.5m profit was shared
between 10 members of the company,
including founders Paul Marshall and
Ian Wace. The report said the highest-
paid member made £34.3m, com-
pared with £88.8m in the previous
results.
Turnover made on UK and
Guernsey-based activities fell 90 per
cent to £4.6m, while fees from the rest
of the world tumbled 77 per cent to
£62m.
The firm has an estimated £4bn
under management, up slightly from
the doldrums of 2009 but still well
below the estimates of £8.5bn in 2008.
The firm, which was founded in
1998, gave just over £21,557 to charity
in the year, compared to £4.5m in the
Martin Broughton poised to bet
against Reuben brothers on Tote
▲ versial bailouts. AIG and the Treasury
M&A
MARTIN Broughton, who oversaw the
recent sale of Liverpool Football Club,
is putting together a bid to buy the
Tote.
Broughton is assembling an offer
for the state-controlled betting firm
through Sports Investment Partners
(SIP), the private equity firm he
recently launched with his son,
The racing fan, who is a former
chairman of the British Horseracing
Board, is expected to lodge an initial
bid for the Tote – forecast to be valued
at around £250m – before a deadline
of midnight on Friday, according to
Sky News.
However he will reportedly find
himself racing for the finish line
against two of Britain’s richest men,
property magnates David and Simon
Middle East and Africa unit rose 2.4 per
cent.
Treasury to sell down AIG stock
The Treasury plans to sell about one-
fifth of insurer AIG through a stock
offering in the first half of 2011, an
important test of the governmen’s ability
to profitably exit one of its most contro-
would both sell stock in the offering,
which could total $10bn to $15bn,
sources said. That would place it among
the largest secondary share offerings in
history. AIG got a $182.3bn taxpayer-
funded aid package during the financial
crisis. An offering could come as early as
March, but details have not yet been
decided. Analysts said the proposed
sale of 20 per cent of the company was
a cautious first step toward yanking the

@
12 months to February 2009. Michael. Reuben. insurer off government life support.

Apax close to buying

ISS for up to $8.5bn
@
M&A source said yesterday, heaping pres- not yet approached potential backers.
▲

BY MARION DAKERS
LONDON-based private equity group
Apax Partners has won exclusive talks
to buy cleaning giant ISS for up to
$8.5bn (£5.3bn), sources close to the
companies confirmed yesterday, in
what could be the biggest buyout in
sure on Apax to table a suitable offer
quickly.
“The strategic review is ongoing. We
are looking at all the possibilities,”
said an ISS spokesperson yesterday,
who declined to comment further.
ISS hired Goldman, Rothschild and
Morgan Stanley to help consider a
Rival bidding groups including CVC
Capital and Apollo, and Bain Capital,
Nordic Capital, Clayton Dubilier &
Rice and Blackstone have reportedly
been rejected.
ISS, which was taken off the Danish
stock exchange by Goldman and EQT
for in 2005, has cleaning contracts

Europe since the credit crisis.
Apax has several months to thrash
out a deal with current owners
Goldman Sachs and Swedish buyout
company EQT, people close to the
negotiations told City A.M.
Danish firm ISS is still pushing
ahead with plans for an IPO early next
year, with meetings between senior
staff scheduled for next week, one
flotation or sale in August, following
its failed attempt to float three years
ago as the credit crisis hit.
Apax is currently bidding alone,
and is expected to ask investors and
existing debt providers including
Citigroup to help fund the deal due to
its investment limit of around $1bn.
However, a source close to the compa-
ny said yesterday that the firm had
@
with the NHS, Citigroup and UK
embassies and produced turnover of
DK18.5bn (£2.1bn) in the latest quar-
ter. It employs around 45,000 people
in the UK, which is its second-largest
market.
Apax, Bain Capital and Goldman
Sachs declined to comment, while
CVC Capital and Citi could not be
reached.

Hundreds face axe at O2 as

firm shakes up management
part of the “streamlining” operation, place is no longer suitable. We need
▲

EXCLUSIVE
BY STEVE DINNEEN
HUNDREDS of jobs are set to be axed
at O2 as the firm completes one of its
biggest structural shake-ups in recent
years, City A.M. has learned.
The telecoms giant will start a con-
sultation period in January to deter-
mine how many positions will go.
The firm will merge its customer
sales and customer services depart-
ments into one operation, with at
least 10 senior managers changing
their roles.
Two senior managers will leave as
with finance officer Ramon Ros
returning to parent company
Telefonica in Madrid and customer
service director Cheryl Black retiring.
In addition, Steve Shurrock will
begin as chief executive of the firm’s
Ireland division.
A spokesman told City A.M.: “The
main driver for the changes is that we
are no longer just a mobile phones
company. We are a multi channel,
multi product firm, offering services
including broadband, media and
entertainment.
“The management structure in
to align ourselves with the needs of
our customers.”
“There will be further organisation-
al changes as we work through the
process. We don’t expect radical job
losses.”
The firm says it will try to protect
consumer facing roles and says it will
increase the number of in-store tech-
nical gurus from 150 to 400 – around
one for each of its UK stores. MORE NEWS
O2 is now the second largest
mobile network in the UK after the
ONLINE
merger between rivals T-Mobile and www.cityam.com
Orange.
CITYA.M. 9 DECEMBER 2010
Asset sell-off
could pay for
lower taxes
▲
POLITICS
BY DAVID CROW
GEORGE Osborne yesterday revealed
he could have tens of billions of
pounds to spend on tax cuts or spend-
ing projects before the next election.
The chancellor has not factored the
proceeds from selling off state-owned
assets – including the government’s
stake in RBS and Lloyds – into his
deficit reduction plan.
If the government can sell its bank-
ing shares at a profit, by no means a
foregone conclusion, it could
approach the next election with a
war chest to spend on vote-winning
goodies or tax cuts.
Senior Liberal Democrats have
urged the chancellor to use any pro-
ceeds to scale back his austerity meas-
ures.
But yesterday he told the Treasury
select committee that he would not
necessarily use the funds to help
reduce the deficit.
He said: “I’m not wedded to all pro-
ceeds from asset sales or privatisation
going into deficit reduction,” he said,
although he added he hadn’t
“hypothecated particular projects or
particular sums”.
As well as reprivatising its stakes in
Lloyds and RBS, the government is
also planning to sell off the horse rac-
ing Tote, the Student Loan Company
and Royal Mail.
Andrew Tyrie, chairman of the
Treasury select committee, said the
proceeds would run into the “tens of
billions” – even without accounting
for the bank sales.
However, it is still unclear whether
the government can make a signifi-
cant profit on its banking shares in
the near future. It is currently sitting
on paper losses of around £2bn in
Lloyds and £8bn in RBS.
Those losses could be even greater
if the government decides to break up
Lloyds to boost competition in the
retail banking sector, one of the
options being considered by the inde-
pendent banking commission.
George Osborne could net tens of billions by selling off state assets Picture: PA
GEORGE OSBORNE AT THE that he wasn't also telling me in pub-
TREASURY SELECT COMMITTEE lic.”
On whether Britain will help bail out
On suggestions that Mervyn King, troubled countries in the Eurozone,
the independent governor of the after it offered a bi-lateral loan to
Bank of England, has become Ireland:
involved in party politics: The loan was a “very specific resource
“He speaks his mind. He's independent for assisting Ireland and the legislation
minded. I don't believe he has been is for Ireland only”. He gave “as clear a
drawn into matters political.” hint as is possible” that similar assis-
tance would not be afforded to
On suggestions that King, along with Portugal, Spain, or Italy. “There was an
senior civil servants, helped unseat option available to create a general
Gordon Brown as Prime Minister by enabling power to make loans [to
backing Tory deficit reduction plans: other countries]. I have decided not to
“The governor of the Bank was making do that.”
both public and private statements
earlier this year... that he was con- On the UK economy:
cerned about the lack of what he There is “no silver bullet” but “there are
believed was a credible fiscal pan. He some signs of evidence that conditions
wasn't telling me anything in private are beginning to ease a little”.
Politics 5
MPs: Labour
wasted £1bn
on PFI projects
▲
POLITICS
BY DAVID CROW
ALISTAIR Darling, the former chan-
cellor, wasted over £1bn by using the
private finance initiative (PFI) to fund
a series of vote-winning projects in
the run up to the election, according
to a report by an influential group of
MPs.
The Public Accounts Committee
found the taxpayer had to pay an
extra £1bn for PFI deals financed dur-
ing the crisis, after the credit crunch
pushed up borrowing costs for infra-
structure projects.
Jesse Norman, a Tory member of
the committee, told City A.M.: “The
government was determined to push
through these projects because it
wanted to have lots of good news sto-
ries in the run up to the election.
“But these deals were done at
inflated prices.”
Norman added that a “rudimenta-
ry analysis” of the projects Darling
signed off in this period showed a
large number benefited voters living
in Labour marginal constituencies,
suggesting the government was try-
ing to skew the result of the election.
The report also criticises the
Treasury for failing to use its strong
negotiating position – as a sharehold-
er in RBS and Lloyds – to push down
financing costs.
 6 News
Rio Tinto and
Ivanhoe in deal
▲
MINING
ANGLO-AUSTRALIAN miner Rio
Tinto and Canada’s Ivanhoe Mines
said yesterday they had reached
agreement on the joint development
of the Oyu Tolgoi copper and gold
project in Mongolia.
The agreement ends a dispute
between the two companies dating
back to 2006 and will also see Rio
Tinto increasing its stake in Ivanhoe
to 49 per cent by January 2012.
Rio Tinto is now set to assume
direct managment of the Oyu Tolgoi
project.
Government backs down as
limits private pensions cuts
▲
REGULATION
NEW rules that would have significant-
ly reduced the pensions of millions of
private sector workers were abolished
yesterday after the government backed
away from plans to reduce the infla-
tion-proofing of retirement benefits.
In an abrupt U-turn to plans
announced just six months ago that
private sector pensions could be tied to
the consumer price index, instead of
the retail price index, mimicking a
change to state pensions, the govern-
ment yesterday said that it would not
go ahead. “Only those schemes that do
not have such clear wording but
instead refer to measures such as ‘the
general rise in prices’ will find that
there may be flexibility,” pensions min-
ister Steve Webb said.
Laith Khalaf of Hargreaves
Lansdown, said ministers had backed
down because of the risk of legal action.
“Permitting schemes to renege on
their explicit promises would amount
to a retrospective reduction in the pen-
sions that had been promised. Such a
move by the government would almost
certainly have been contested in court.”
In its consultation paper, the
Department for Work and Pensions
noted that up to 80 per cent of private
occupational schemes had legally
binding rules that tied pension
increases specifically to the RPI.
CSC clashes
with investor
over mall bid
▲
PROPERTY
BY STEVE DINNEEN
A ROW between Capital Shopping
Centres (CSC) and one of its biggest
shareholders boiled over yesterday
over the property firm’s plan to buy
the Trafford Centre.
Simon Property Group, which
owns five per cent of CSC, has
slammed the bid and says it will
rethink its plans to make an offer to
buy the whole of the UK-based prop-
erty giant. It also said it would consid-
er offloading its stake in CSC in
protest at the “value destructive”
acquisition.
Simon Property has demanded CSC
hands over due diligence information
regarding the proposed £1.6bn acqui-
sition of the Manchester-based shop-
ping centre and says it will vote
against the bid at an upcoming share-
holders’ meeting.
CSC will require 50 per cent of its
shareholders to vote in favour of the
bid, which will see Trafford Centre
owner John Whittaker take a 20 per
cent holding in the firm. No cash will
be involved in the transaction.
Last month CSC raised £209m
PHILIP ROBERT-
TISSOT
CITIGROUP
SIMON Property Group has hired
Citigroup as its sole financial adviser.
Heading up the team will be Philip
Robert-Tissot. Robert-Tissot has been
involved in a number of major takeovers
in recent years, advising Kraft on its
deal to buy Cadbury and acting as lead
adviser for Spanish construction firm
Ferrovial in its takeover of BAA in
2006. He is currently Citigroup’s UK
managing director.
Grant Kernaghan from Citigroup’s
global markets division is also on the
team. He represented Onex and the
Canada Pension Plan Investment Board
in their spat with components manu-
CITYA.M. 9 DECEMBER 2010
HK insider deal
enforcer leaves
▲
REGULATION
THE head of Hong Kong’s Securities
and Futures Commission (SFC) will
leave the job next summer after five
years.
Martin Wheatley, formerly the
deputy chief of the London Stock
Exchange, joined the SFC in 2005 and
took over the chief executive’s role in
2006. Some say he might be a con-
tender to head up the new Consumer
Protection and Markets Authority
being set up in the UK.
Under Wheatley, the SFC cracked
down on insider trading.
through a share placement to help
fund the bid and pay down debt.
A CSC spokesman told City A.M. it
has not received a bid from Simon
Property and plans to press ahead
with its Trafford Centre plans, calling
it “one of the finest shopping centres
in Europe” and a “unique opportuni-
ty”.
If CSC acquires the Trafford Centre,
it would own 10 of the top 25 UK
malls, cementing its status as a retail
heavyweight.
CSC was formed out of the demerg-
er of Liberty International earlier this
year. It had recently ruled out acquisi-
tions saying it planned to grow organ-
ically in its existing malls.
ANALYSIS l Capital Shopping Centres
420 p 386.20
08 Dec
400
380
360
340
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
facturer Tomkins earlier this year. He
also guided outsourcing company
Xchanging through its £530m flotation
in 2007.
Capital Shopping Centres (CSC) has
taken on Bank of America Merrill Lynch
and UBS to advise on the acquisition.
Simon Mackenzie-Smith and Simon
Fraser are heading the team at BoA.
Mackenzie-Smith has been with Merrill
Lynch since 1996, when he joined as
managing director of investment bank-
ing. He has been involved in a wide
range of mergers and acquisitions and
restructurings – including Punch’s acqui-
sition of managed pubs operation Spirit
in 2006. Co-head of corporate broking
Simon Fraser has spent 14 years at the
bank, working alongside Mackenzie-
Smith on the Segro, Debenhams and
Liberty deals, as well as Inchcape, Natex
and SSE. UBS corporate broking man-
aging director Jonathan Bewes and
head of investment banking Hew Glyn
Davies are also advising.
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 8 Eurozone Debt Crisis CITYA.M. 9 DECEMBER 2010

Tensions flare between

euro leaders over bonds
Angela Merkel for what he called her Merkel has provoked growing anger
▲

EUROZONE CRISIS
BY JULIET SAMUEL
THE interest on core Eurozone gilts
was showing signs of a spreading cri-
sis of confidence at Europe’s heart yes-
terday, as German 10-year yields
spiked to a seven-month high at three
per cent.
The pressure is telling on the
region’s leaders, with Luxembourg
Prime Minister Jean-Claude Juncker
lashing out at German chancellor
“un-European manner”.
Regarding Merkel’s comments that
issuing single, region-wide Eurozone
bonds (or “E-bonds”) would not be
legal under current treaties, he retort-
ed: “The proposal is being rejected
before it has been studied. Germany’s
thinking is a bit simple on that.”
A German official responded coolly:
“It certainly doesn’t help anyone
when the individual players call each
other ‘un-European’.”
among her Eurozone allies by reject-
ing E-bond proposals and repeatedly
suggesting that sovereign bondhold-
ers should be on the hook for bailout
costs.
Her rhetoric, designed to play to
populist discontent at home about
the cost of bailing out indebted states,
has raised concerns among officials
that conflicting interests at the
Eurozone’s core are fraying its politi-
cal union.

Left to right:
Luxembourg PM Jean-

Need a great Claude Juncker, French

President Nicolas
Sarkozy and German
Chancellor Angela
Merkel Picture: GETTY

place to spend
a weekend?
Lord Sugar knows
just the job.

Last night the remaining Apprentice candidates were given a trip to Jersey as a
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For more information visit jersey.com

CITYA.M. 9 DECEMBER 2010
New Bank
of Ireland
debt offer
▲
POLITICS
BANK of Ireland offered to exchange
subordinated debt for government
guaranteed securities yesterday in a
move that could plug around €400m
(£335.7m of its €2.2bn capital hole.
Ireland’s central bank wants
lenders to “overcapitalise” as a result
of the €85bn emergency loan package
agreed with the IMF and EU last
month, raising its target for core Tier
1 capital ratio to 12 per cent from
eight per cent.
Bank of Ireland, Ireland’s biggest
bank by market value, was the first
major Irish bank to meet the previous
capital target, raising €3bn partly
through private sources earlier this
year in an exercise which left the
state with a 36 per cent stake plus
preference shares.
The bank – which is now expected
to fall under majority state owner-
ship – began a fresh round of capital
raising by making an exchange offer
for up to €1.5bn of Lower Tier 2 securi-
ties with a nominal value of around
€3.1bn.
Cowen will cling on until election defeat Flowers still keen on Spain
▲
POLITICS
IRISH Prime Minister Brian Cowen
looks set to see off opposition from
party rebels, barring an unlikely cabi-
net revolt, and lead his Fianna Fail
party into an election drubbing that
could halve its parliamentary pres-
ence.
Cowen, whose popularity has
plunged into the single digits since
his debt-stricken government had to
Dominique Strauss-Kahn has criticised Europe for reacting too slowly
Guess who I saw last night?
Enjoy art, music, drinks, tours, talks and workshops
Thursdays and Fridays 18.00 – 21.00. Free Admission
www.npg.org.uk l
request an EU/IMF bailout, has prom-
ised to call an election once legisla-
tion underpinning Tuesday’s
austerity budget passes early next
year.
After parliament passed a first
budget resolution, vital to receive the
first international loans, Cowen came
out fighting yesterday, saying he
would still be in charge by then.
Finance minister Brian Lenihan,
foreign minister Micheal Martin and
Picture: GETTY
IN PARTNERSHIP WITH
Leicester Square
arts minister Mary Hanafin have said
they would be interested in the top
job if it became free but one of them
would have to challenge Cowen to
prompt a pre-election vacancy.
Rumours have been swirling that
Lenihan may make a move but party
sources say the demand by the Greens,
junior partners in the coalition, for an
early election has shortened the time-
frame so any challenge would have to
happen before Christmas.
Eurozone Debt Crisis 9
IMF: Act faster
temporary emergency fund and how
▲
EU ECONOMICS
to set up a permanent one, Strauss-
BY JENNY FORSYTH Kahn said: “It is not a good approach
THE head of the International that for every country we find a sepa-
Monetary Fund (IMF) Dominique rate solution.”
Strauss-Kahn yesterday criticised He added: “The institutional
European countries for reacting too organs of the European system likely
slowly to the debt crisis. need some improvement so as to
Speaking in Brussels, where react more quickly. They were not cre-
finance ministers were debating ated to deal with crisis, they were cre-
whether to enlarge the Eurozone’s ated for more peaceful times.”
Irish banks
will offer to
restructure
▲
BANKING
NATIONALISED lenders Anglo Irish
and Irish Nationwide Building Society
will submit a joint restructuring plan
to the European Commission propos-
ing they be merged and run down
over time.
The plan, which must be completed
by the end of March, was one of the
demands the IMF, European
Commission and European Central
Bank made as a condition for bailing
out Ireland with an €85bn aid pack-
age last month.
Senior executives from both insti-
tutions met officials from the finance
ministry and the National Asset
Management Agency (Nama), which
was set up to manage banks’ soured
commercial property loans, to pre-
pare the plan. The plan will detail
issues such as how to transfer Anglo
Irish Bank’s 14bn deposits and Irish
Nationwide’s €4bn elsewhere within
the banking system.
The future of staff at both institu-
tions and the fate of the building soci-
Paul McCartney (‘Mike’s Brother’) by Sam Walsh © estate of Sam Walsh
ety’s 50 branches will also discussed.
The newspaper said the joint plan
would explain how to handle bonds
issued by Nama in return for the pur-
chase of loans worth €43bn from the
two institutions.
Prime Minister Brian Cowen said
Anglo Irish Bank’s deposits would be
transferred out of the bank by
January, but would remain within
the state and that loans would be
wound down over several years.
Anglo Irish Bank will have about
€38bn of loans following the transfer
of €35bn in property and associated
loans to Nama. Irish Nationwide will
have €2bn in residential mortgages
after transferring €8.5bn to Nama.
A bailout of Ireland’s crippled bank-
ing sector is costing Irish taxpayers
and the IMF tens of billions of euros
after lenders aggressively pursued
property developers during the boom.
But Chris Flowers, founder and
▲
EUROZONE CRISIS
executive chairman, said yesterday:
US private equity firm JC Flowers said “We continue to be impressed with
it still wanted to invest in Banca Banca Civica’s unique business
Civica once the Spanish savings bank model. Currently, Banca Civica is in
completes its merger with domestic negotiations to merge with CajaSol.
CajaSol. When these negotiations are com-
Interest from Flowers in the deal plete, we hope to resume our own dis-
was seen to have cooled when its cussions with Banca Civica. We
founder said he was not interested in remain optimistic about Spain’s fun-
investing in the bank until Spain had damentals and believe it offers attrac-
restored faith in its finances. tive opportunities for investment.”
 The Capitalist
10
TRADERS GO
BANANAS AT
ICAP DAY OF
DONATIONS
IT was that time of year again, yesterday –
the time for ICAP to unleash the creative
instincts of its traders in a four-floor
extravaganza of frenzied fancy dress,
Flintstone toy cars and beer bottles.
The annual ICAP charity day is by now
something of a global institution, a day
on which the firm’s thousands of traders
all over the world throw on costumes and
trade their hearts out for charity – with
100 per cent of the revenues (last year
around £11m) shared between 200 chari-
ties.
With each trading desk adopting a dif-
ferent, strictly enforced costume code,
every floor of the firm’s Broadgate build-
ing was awash with sweating traders in
lycra jumpsuits, squirrel costumes, mili-
tary uniform, geisha kimonos, zombie
garb – you name it.
And there were famous faces to match:
Prince Charles and William both popped
by to place a couple of trades on euro
interest rate butterfly swaps and carbon
emissions allowances. Daniel Craig and
former-Dr Who David Tennant had a go
on the phone lines and even The Capitalist
made a few million over the phone to a
guy in Athens.
Princes Charles and William (top right) and Geri Halliwell (above) place trades at ICAP Pictures: GETTY, REUTERS
Far from the hustle and bustle of the
swaps desk, traders on the pan-European
high-frequency platform BlockCross,
placed their bets in calm silence to match
their priestly garb, presided over by their
head of desk, the serene “Pope Daimon”.
But the day didn’t go by without some
tears: after a collective decision that all
the traders on the tankers derivatives
desk would dress up as bananas, one red-
haired member was distraught to discov-
er that his comrades had played a cruel
prank.
Instead of the anticipated banana suit,
a carrot costume arrived. Our ginger trad-
er was not amused – so unamused, in
fact, that he point-blank refused to wear
the suit.
Tanker derivatives traders can be so
mean.
CITYA.M. 9 DECEMBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
A red-haired
trader was
unamused to
find his
colleagues
had bought
him a carrot
Chancellor George Osborne is this year’s Scrooge.
costume to
in fuel taxes.
wear. But look on the bright side: with VAT
rising by 2.5 per cent in January, this
Christmas will be your cheapest for a
while!
GETTING JAZZY
EBENEZER OSBORNE If you’re hankering for a place to throw
If you thought the Grinch stole some shapes next week, you needn’t look
Christmas, think again. According to a far. Jazz FM and Aberdeen Asset
report by the Taxpayers’ Alliance (TPA) Management are going to be holding
released today, George Osborne nicked it. free Christmas swing concerts every
The TPA has crunched the numbers and lunchtime right in the middle of the City
found that, on average, each British fam- in Exchange Square from Monday to
ily will pay £283 of tax on Christmas Wednesday.
essentials. The Henry Armburg Jennings big
The turkey and brussel sprouts might band and singer Atila will be blar-
be free of levies but you’ll still be paying ing out such cheery tunes as Let It
£24 in tax if you want to buy an “old time” Snow (only not when I’ve got a flight to
plush Santa suit, £21 on a visit to Santa’s catch) and Chestnuts Roasting on an
magical kingdom and £3 on that essential Open Fire as well as a few of the more
zhu zhu pets deluxe funhouse set. classic carols.
And then there’s travel costs. With an And if you want to see the whole
average round-trip car journey of 121 18-piece band, be sure to show up
miles between Christmas Eve and Boxing before 7.45pm on Tuesday, when
day, it means the UK will clock up £163m they’ll hold a one-off evening concert.
CITYA.M. 9 DECEMBER 2010 News 11

FSA’s Turner:
WHO IS BEING SUED OVER MADOFF?

Carl Shapiro

Banks need $2.5bn $625m (settled)

special laws $9bn $6.5bn

shareholder loss or even the danger
▲

REGULATION
BY JULIET SAMUEL
CHAIR of the Financial Services
Authority (FSA) Lord Turner yester-
day called for the British banking
system to be subject to a special set
of rules and said that directors of
banks that had to be bailed out
should be banned from serving on
the board of other banks in future.
of bankruptcy. But banking is differ-
ent.”
He suggested that it should in Harley International
future be the role of regulators to
prevent risky ventures such as RBS’s
acquisition of ABN Amro.
Simon Morris of City law firm
CMS Cameron McKenna said in
response to Turner’s remarks: “The
$3.6bn $1.07bn
UK is already unique in having rules

Madoff’s UK directors sued for $80m

He also defended the FSA against
criticisms that it is unnecessarily
secretive, refusing, for example, to
publish any summary of the evi-
dence or rationale for its decision
not to censure former RBS boss Sir
Fred Goodwin for his actions.
that micro-manage senior manage-
ment. Any further ratcheting will
only make the UK an even less attrac-
tive place to do business.”
Turner’s comments come as EU
officials meet in London today in
order to sign off on new internation- International Ltd (MSIL), seeks $80m recoup money from Bernard Madoff’s
▲

He added that since the FSA did
not even compile a summary of its
decison, “there is, therefore, no one
report which could be published”.
On the banking system he said
that banks should be subject to a
special set of rules to prevent exces-
sive risk-taking: “In some other sec-
tors we want bold risk-taking, which
might sometimes result in failure,
al restrictions regarding bankers’
bonus payments.
Regarding proposals to shake up
UK and European regulatory struc-
tures, Conservative MP Mark Field
said: “It doesn’t look as though the
new all-singing, all-dancing bodies
that are being created will necessari-
ly lead to a direct line of regulatory
responsibility.”
ENFORCEMENT
BY STEVE DINNEEN
THE legal battle over the collapse of
Bernard Madoff’s $50bn (£31bn) Ponzi
scheme moved to London last night
when liquidators of the fraudster’s
empire named all the directors of the
London subsidiary in a new lawsuit.
The complaint against Madoff’s
London branch – Madoff Securities
and names as defendants former MSIL
directors: Madoff’s brother Peter,
Madoff’s sons Mark and Andrew,
Stephen Raven, Leon Flax, Christopher
Dale, Philip Toop and Malcolm
Stevenson. Raven was lead director.
The suit alleges that MSIL was estab-
lished to conceal lack of actual trad-
ing by Madoff's business.
Meanwhile, trustees seeking to
Ponzi scheme have upped their claim
against UBS to $2.5bn. In court
papers, trustee Irving Picard claimed
the Swiss bank “capitalised on the
Ponzi scheme in the face of clear indi-
cations of fraud”.
UBS denies any wrongdoing, saying
it will “take all appropriate steps to
demonstrate that the allegations are
false and unfounded”.
 12 News
IMI promoted
to FTSE 100 as
Cobham falls
▲
MARKETS
BY HARRY BANKS
ENGINEERING group IMI has been
promoted to the blue-chip FTSE 100
index after the latest review, indexes
complier FTSE Group said yesterday.
IMI will replace defence contractor
Cobham which has been demoted to
the FTSE 250 index.
Companies outside the FTSE 100
that grow to rank among the 90
largest by market capitalisation are
promoted into the index, while FTSE
100 companies with the lowest value
or that fall to 111th spot or below
drop into the FTSE Midcap 250 index.
Four other changes were made to
the FTSE 250 index, with three recent
new issues gaining automatic entry
and one company promoted from the
FTSE Small Cap index.
Internet betting exchange Betfair,
and specialty chemicals company AZ
Electronic Materials, both of which
floated in October, will join the mid
caps.
Real estate investment trust
London & Stamford Property, which
stepped up from the AIM to the
London Stock Exchange’s Official list
on 1 October, also gained automatic
entry to the FTSE 250.
And Russian-focused oil company
Exillon Energy was promoted from
the FTSE small cap index.
Milk producer Robert Wiseman
Dairies, outsourcing group
Xchanging, oil explorer Melrose
Resources, and directories company
Yell Group were all demoted to the
FTSE small cap index from the FTSE
250. The index changes will take
effect from 20 December.
FAST FACTS | FTSE RESHUFFLE
● Engineer IMI joins FTSE 100, as defence
contractor Cobham is relegated to FTSE 250.
● Betfair, AZ Electronic Materials, London &
Stamford Property and Exillon Energy are
being promoted to the FTSE 250.
● Robert Wiseman Dairies, Xchanging,
Melrose Resources and Yell Group are being
demoted from the FTSE 250 to the FTSE
small-cap index.
David Sproul takes over as chief executive of Deloitte UK next June
DAVID SPROUL head of tax in 2006 and then manag-
ing partner for tax in Europe, the
HEAD OF TAX Middle East and Africa (EMEA)
region. In his role as head of tax for
DELOITTE UK the EMEA region, Sproul helped
launch an international tax centre of
excellence in Dubai last year.
He is also a member of the Deloitte
Touche Tohmatsu executive.
DAVID Sproul, 51, has 25 years’ expe- Sproul spent the majority of his
rience in tax advice and almost 20 as career at Arthur Andersen, where he
a tax partner, specialising in advising led its UK corporate tax practice
international real estate and private before becoming its UK managing
equity clients. partner for operations and the firm’s
He joined Deloitte UK eight years second in command.
ago as managing partner for consult- His career started at a small
ing and advisory services, following accountancy firm, Hays Allan, where
the firm’s takeover of the UK opera- he worked for four years before join-
tions of troubled US accountant ing Arthur Andersen.
Arthur Andersen. As chief executive, he is expected to
At Deloitte UK he worked as head focus on developing the firm’s talent
of talent before being appointed UK and its strategy to compete globally.
CITYA.M. 9 DECEMBER 2010
Deloitte names
David Sproul as
chief executive
ACCOUNTANCY
▲
BIG four accountant Deloitte named
the head of its tax practice, David
Sproul, as successor to its UK chief
executive John Connelly yesterday.
The news confirms City A.M.’s
November report that Sproul was the
preferred of two candidates for the
position, alongside executive commit-
tee member Martin Eadon.
Sproul, who joined Deloitte UK in
2002 from a managing partner role at
Arthur Andersen, will become chief
executive in June next year.
Connelly said Sproul had “excelled
in a range of leadership roles”.
“Our partners have elected David
with a massive show of support,” he said.
Sproul, who currently also heads
Deloitte’s EMEA tax practice, said the
promotion was a “privilege”.
He would focus the firm on “taking
a lead in responding to the
Government’s growth and competi-
tiveness agenda for the UK” as well as
its client service, he said.
Connelly steps down in May 2011
when he turns 60, after more than a
decade as chief executive.
He has tripled the firm’s profits
since becoming chief executive in
1998 and is credited with growing
Deloitte into the UK’s second-biggest
professional services firm, after
PriceWaterhouseCoopers.
CITYA.M. 9 DECEMBER 2010 News 13

Bust ups and bus trips as Apprentices go on tour

organise a themed London tour. The
result wasn’t exactly the Best of
British.
Stella, stung by allegations that she
was cold and corporate, was deter-
mined to show her fun side and sug-
gested a cockney tour. Showcasing the
worst cockney accent since Dick Van
APPRENTICE REVIEW Dyke, Stuart invited us to, “come to
England and have a taste of my eels”.
GRAEME ALLISTER Such a shame he wasn’t involved in
England’s World Cup bid.
best to leave out the gory parts of the
Sweeney Todd story.
Stella and Jamie were our guides
and were full of fascinating facts
you never knew about London.
“The Thames is the second
largest river in London”, Jamie
informed us. “And do you see
that building that looks like a
gherkin? Well it’s called the
Gherkin because it
looks like a gherkin.”
her tour bus had whizzed past the
sights before she’d noticed and the
walking tour was spent asking
directions. All in all, a snip at
£35 a ticket.
It was a price the London
Visitors Centre called “ambi-
tious” (a fine euphemism) and
it decided to sell tickets for the
rival Ghosts and Ghouls instead,
though this might also be
down to Chris acciden-
for business outside the Centre.
Viewers were almost treated to the
first Apprentice punch up as Stuart’s
legendary extreme masculinity sur-
faced in a showdown with Chris.
With not enough tickets sold,
Stella’s team were back in the board-
room and time for the begging to
begin. Having previously offered to
work for Lord Sugar for nothing,
Stuart now decided he’d work 24
hours a day, including weekends.

W
HEN David Cameron said On the other team Jamie devised a Right, almost got tally promising them Knowing Lord Sugar’s weakness,
Britain wasn’t doing enough ghosts and ghouls tour, though the that, but could you 20 per cent of every Stuart reminded him he was a self-
to sell itself to tourists, this rest of his team may not have quite run through it one pound he made. This made man. Spotting a Mini-Me in his
probably wasn’t what he had grasped the concept. Team leader more time? left an increasingly midst, Lord Sugar spared Stuart and
in mind. With six candidates left, each Joanna kept talking about “goals and He still did a bet- desperate Stuart and booked Liz her very own one-way tour
team was given a double decker bus to ghosts” while Chris thought it was ter job than Stella; Liz illegally touting through London.

NEWS | IN BRIEF
Virgin rolls out fastest broadband
Virgin Media has started selling its new
100mbps broadband service. Customers
in some locations can now sign up to the
superfast service for £35 a month. Virgin
says the service should be available
across its network by mid 2012. It added
that the service has the potential to
carry speeds of up to 400mbps in the
future. Rival BT is also rolling out its
Infinity fibre broadband network that it
says will bring superfast internet speeds
to most of the country. Culture minister
Jeremy Hunt says the government is
committed to ensuring next generation
broadband is available in every communi-
ty and will encourage firms to invest
heavily in it. Virgin is also poised to
release a new TV on demand package
powered by TiVo.

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 14 News CITYA.M. 9 DECEMBER 2010

ArcelorMittal to BAE set to axe Stagecoach chief

Brian Souter hopes
the government
rail shake-up will
offload division up to 1,350 jobs be profitable for
the company

Picture: Micha
Theiner/ CITY A.M.
▲

STEEL
ARCELORMITTAL is de-merging its
stainless steel arm in a move tipped to
spark industry consolidation.
The steelmaker, created when
India’s Mittal bought European rival
Arcelor in 2006, will issue one share
for each 20 in the unit early next year.
ArcelorMittal said in July it might
spin off stainless steel after seeking a
merger to cut costs.
Analysts said a Euronext listing
early next year may allow it to merge
with rivals like Spain’s Acerinox or
Finland’s Outokumpu Oyj.
▲
DEFENCE
DEFENCE group BAE Systems is
poised to axe up to 1,350 jobs across
the UK today.
The move, which follows the gov-
ernment’s October defence review
and its decision to scrap the Nimrod
and Harrier jets, will largely affect the
company’s Woodford plant near
Stockford, where the Nimrod was
assembled.
Around 700 jobs are set to go there,
with a further 650 cuts at other sites
where work on Nimrods and Harriers
is carried out.

Stagecoach
targets new
franchises
▲
TRANSPORT
BY PHILIP WALLER
TRANSPORT group Stagecoach is hop-
ing to cash in on the government’s
rail industry shake-up as it beat fore-
the seiko chronograph. casts with a 43 per cent rise in first-
a new fusion of high performance half profit.
and classic style. The bus and train operator, led by
Brian Souter, said it may bid for new
longer franchises as part of a review
unveiled by ministers yesterday to
help cut costs and boost investment.
The group may target a new 14-year
franchise for the West Coast main
line and a 15-year franchise for the
state-owned East Coast main line,
both due to be tendered next year.
Stagecoach runs commuter fran-
chise South West Trains and regional
operator East Midlands Trains and
owns a 49 per cent stake in Virgin Rail
Group, which runs the West Coast.
Stagecoach said it would be inter-
ested in taking over the East Coast,
although it is likely to face competi-
tion from German state railway
Deutsche Bahn and UK rival
FirstGroup among others.
Finance director Martin Griffiths
said: “If the East Coast line is let on
the right terms, it would be a very big
opportunity and we would certainly
be interested in that. We are also com-
mitted to keeping the West Coast
main line.”
The bus and rail operator beat
hopes with a 43 per cent rise in first-
half pre-tax profit to £109m -- above a
market forecast of about £100m -- on
revenues 4.8 per cent higher at
£1.13bn in the six months to the end
of October, driven by rising UK ticket
sales and growth in US buses.
UK rail business rose 6.4 per cent in
the period, while Virgin Rail boosted
sales by 14.8 per cent. Underlying rev-
enue in its UK bus division rose 2.3
per cent, while its North American
coaches operation boosted like-for-
like sales by 7.5 per cent.
ANALYSIS l Stagecoach
230 p 212.00
08 Dec
210
190
170
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov

Carillion eyes support services

as governments slash spending
dedicated to perfection
reduced capital investment by the
▲

CONSTRUCTION
BUILDING and support services com-
pany Carillion plans to double rev-
As the inventor of the quartz watch in 1969 and the analogue quartz chronograph in 1983, SEIKO has enue from its international business
and expand its UK support services
decades of experience in fusing high performance with refined design. The new 2010 chronograph arm as governments look to cut costs
by contracting out more services.
measures elapsed time to 1/5th second and features an alarm with dual-time option, a sapphire crystal and
Carillion said its Middle Eastern
10 bar water resistance. A classic chronograph for the watch connoisseur. seiko.co.uk construction business had done well
and annual earnings were on track to
meet hopes. The firm works in Abu
Dhabi, Oman and Qatar and hopes to
expand into Saudi Arabia.
Carillion said its decision in May
AVA I L A B L E AT H . S A M U E L U W W W. H S A M U E L . C O . U K 2010 to reduce the size of its UK con-
struction business by a third had put
it in a strong position to manage
government in the next four years.
The group said support service rev-
enue would be lower than in 2009
due to the sale of non-core opera-
tions, but there was a record number
of contract opportunities as local
councils tender more services.
Carillion also forecast good growth
in pre-tax profit in 2010.
It said: “The group is well posi-
tioned to make further progress in
2011 and to deliver its objectives for
medium term growth, namely dou-
bling the revenues of our internation-
al businesses, while delivering
substantial growth in UK support
services.”
 16 News CITYA.M. 9 DECEMBER 2010

Gender pay gap narrows

2.6 per cent during the surveyed peri- men’s (£142), the report revealed.

▲
EMPLOYMENT
BY JULIAN HARRIS
WOMEN’S pay packets are catching
up with those of their male counter-
parts, the government said yesterday.
The gender pay gap fell to 10.2 per
cent in April, down from 12.2 per
cent the previous year – the sharpest
fall since the measure began in 1997.
Burbery CEO Angela Ahrendts is one of three women on their board Picture: GETTY Women’s hourly pay increased by
od, considerably higher than the 0.3
per cent growth in men’s wages,
according to the Office for National
Statistics.
“In 1997 the gap for full timers was
around 17 per cent, and it’s now
dropped to around 10 per cent,” said
ONS statistician Mark Williams.
For part time work, women’s aver-
age weekly wage (£157) is higher than
Yet only 12.5 per cent of board level
positions at FTSE 100 companies are
occupied by women.
This week the coalition govern-
ment scrapped plans to force compa-
nies to publish the pay gap between
their male and female employees.
Fresh legislation and regulation
would not deliver progress, the
Equality Strategy said.

NEWS | IN BRIEF
South east
hardest hit TRADE the FX majors Surge in German manufacturing
German industrial production rose by
2.9 per cent in October, compared to the
previous month, it was announced yes-
terday. German industry continues to

in recession
thrive, with October’s figures showing a
double digit increase – close to 12 per
cent on the same time in 2009. The fig-
ures likely point to greater GDP growth
in the fourth quarter than was seen in
the third quarter, say economists.
▲

UK ECONOMY
BY JULIAN HARRIS
LONDON bore the biggest brunt of
the recession last year, official data
revealed yesterday.
The capital’s economy contracted
by 2.6 per cent in 2009, after growing
by 3.9 per cent the year before. The
drop was the largest for all UK
regions.
And London lost 192,000 jobs dur-
ing the year, the highest number in
the country. Most jobs were lost in
business, finance and insurance,
according to the Office for National
Statistics (ONS).
However, the city still leads the
country in terms of wealth creation.
London’s gross value added (GVA) per
head, which measures individual con-
tribution to the economy, was
£34,200 – still 71.2 per cent above the
UK average, despite the recession.
And 28.7 per cent of the country’s
employees work in London and the
south east, the report showed.
For the first time since the data
series began in 1989, every region saw
a fall in GVA, and employment was
down in all regions except the south
west.
The total number of employees in
Great Britain for 2009 was 26.2m,
down by 783,000 – 2.9 per cent – on
the previous year.
The south east – excluding
London – suffered a 3.5 per cent fall
in its overall GVA, which is used as an
estimate of economic activity.
Yet economists expect a turn-
around in the data as the recovery
gains strength.
In 2009 the economy contracted by
five per cent, yet the Office for Budget
Responsibility (OBR) has forecasted 1.8
per cent growth for this year, and 2.1
per cent next year.
And employment is projected to
grow by 1.1m by 2015, according to
the OBR’s forecasts.
Job openings and credit up in US
American job vacancies have increased
to 3.36m in October, offering some hope
for the employment market. The job
openings rate (the proportion of the jobs
market taken up by openings) was up to
2.7 per cent in the private sector.
Meanwhile, US consumer credit was up
by $3.3bn (£2.1bn), the Federal Reserve
announced last night. The rise defied
expectations, after economists had pre-
dicted a slight fall in credit. Credit is 1.7
per cent higher than at the same point
last year.
OECD: Reform taxes for recovery
Governments must reform their tax
regimes if they are to avoid stunting the
economic recovery, the Organisation for
Economic Co-operation and
Development (OECD) said yesterday.
Taxes on consumption and residential
property tax are less harmful than per-
sonal and corporate income taxes, they
said.
Private sector pay on the rise
Private sector pay increased for the
sixth consecutive month, according to
VocaLink Take Home Pay Indices
released yesterday. Meanwhile govern-
ment sector pay growth has been stuck
at 1.3 per cent for four straight months,
and for three months private sector
1 POINT EUR/USD | 2 POINT GBP/USD | 2 POINT EUR/GBP wage growth has exceeded rises in pub-
lic sector wages. Manufacturing has
seen the strongest increase in wages as
the sector continues to expand, the
authors of the report said.
0845 077 1183 Business morale jumps in France
French business confidence rose in
www.cityindex.co.uk/value-fx
November as job creation and household
sentiment suggested that domestic
Spread betting and CFDs can result in losses that exceed your initial deposit. demand will hold up in coming months.
The survey, by BdF, showed increasing opti-
Listed spreads available on rolling spread bet and CFD. mism in both manufacturing and service
sectors. The manufacturing index jumped
to 107 for November from 104 and the
service index was up to 98 from 96.

ECONOMIC ACTIVITY PER HEAD BY REGION

- £GVA WEST YORKS & THE
per head MIDLANDS HUMBER
EAST £16,788 £16,569
- Fall in 2009 MIDLANDS 3.4 per
compared SOUTH £17,349 3.2 per cent fall
to 2008 EAST OF ENGLAND 3.2 per cent fall
EAST
LONDON £20,923
£18,591 cent fall
£34,200 per head NORTH
WEST
3.5 per £17,263
2.6 per cent fall cent fall SOUTH
4 per 1.9 per NORTH
WEST cent fall EAST
cent fall £18,211 £15,621
2.5 per 2.0 per
cent fall cent fall
CITYA.M. 9 DECEMBER 2010 Economics 17

MPC poised to Factory managers expect order

hold rates at growth to continue in new year
well above economists’ forecasts of a partly responsible for the good per-

▲
UK ECONOMY
reading of -13 and its highest since formance, the CBI survey said.

0.5 per cent

BY JULIAN HARRIS
MANUFACTURING’S boom will con-
tinue well into the new year, a survey
by the Confederation of British
Industry (CBI) revealed yesterday.
Orders to manufacturers have hit a
30-month high, convincing managers
that the upturn is here to stay.
▲
June 2008.
The strong performance was
helped by a sharp increase in export
orders, which reached their highest
level in fifteen years, according to
Samuel Tombs of Capital Economics.
The data “suggests that problems
in the Eurozone have not had any
Consumer good producers saw the
most marked improvement on
November, and reported the largest
advancement in exports.
However, the survey also threat-
ened further rises in inflation.
A total of 27 per cent of respon-
dents expect their prices to increase

UK ECONOMY
BY JULIAN HARRIS
INTEREST rates are expected to stay at
0.5 per cent today, after the Bank of
England’s rate setting committee
meet for the final time this year.
A split has emerged in the
Monetary Policy Committee (MPC) in
recent months, with “hawk” Andrew
Sentance pushing the case for a rate
rise and “dove” Adam Posen arguing
for a further bout of quantitative eas-
ing (QE2).
But seven of the nine voting mem-
bers remain on the fence, opting
against a move in either direction.
“The difficulty is the unprecedent-
ed nature of the situation since the
credit crunch,” said Peter Spencer of
the Ernst and Young ITEM Club.
After a normal recession inflation
should have dropped, he said.
Bank governor Mervyn King has
been forced to write several letters to
chancellor George Osborne to explain The CBI survey’s total order book adverse effect on the UK’s manufac- over the next three months, com-
why inflation remains well above the balance unexpectedly jumped this turing recovery yet,” he said. pared to just 11 per cent who expect a
two per cent target. month to -3 from -15 in November, An increase in consumer goods is fall.
King has argued that the MPC is
concerned about medium term infla-
tion, not short term effects.
The committee is “ready to adjust
policy in either direction,” he said.
Since the MPC’s November
announcement, the Office for Budget
Responsibility (OBR) released its eco-
nomic and fiscal outlook.
The OBR slightly lowered the pro-
jected growth rate for the next two
years, but remains optimistic about
GDP increasing by over two per cent
per annum.
And employment will increase,
according to the OBR. “Private sector job
creation more than offsets falling pub-
lic sector employment – just as it did
during the 1990s,” the report stated.
The MPC’s statement today will be
followed next week by the Bank’s
quarterly bulletin-

CITY A.M. | SHADOW MPC

ALLISTER HEATH | CITY A.M
“The economy is continuing to grow, led by manufacturing in par-
ticular. There is much less spare capacity than people realise, one
reason why inflation is too high for comfort. We need a small
hike in rates now to send a strong message to the markets.”
SIMON WARD | HENDERSON
“Raise by 0.5 per cent. Policy is much too loose, as evidenced by
nominal domestic demand growth of 7.1 per cent in the year to the
third quarter, the highest since 1998. Consumer inflation expecta-
tions have surged, threatening stronger wage pressures in 2011.”
GEORGE BUCKLEY | DEUTSCHE BANK
“The economic news has been consistent with keeping policy on
hold for the time being, ruling out rate increases or further QE.
If the recovery continues the Bank could begin raising rates from
mid 2011, however.”
PHILIP SHAW | INVESTEC
“Domestic economic news has been relatively encouraging over
the past month, while inflation news has been disappointing.
Further QE seems unjustified, at least at this stage, and rates

NEW
should stay at 0.5 per cent.”
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“UK growth has been healthy recently but with fiscal tightening
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 18 News CITYA.M. 9 DECEMBER 2010

Chief executive
CAN KESA SUSTAIN ITS DRIVE FORWARD IN TOUGH MARKETS? By John Dunne Thierry Falque
Pierrotin (pic-
tured) says Kesa
is on a roll – but
PHILIP DORGAN| ALTIUM RAMONA TIPNIS| SHORE CAPITAL not in the UK

“ Comet was hit by the costs of store

refits and a rebranding exercise, but it is difficult
to see much in the way of margin improvement
over the next 12 months. The Darty story remains
strong. We maintain our ‘buy’ recommendation on
“ The elimination of losses in Kesa's devel-
oping markets is continuing apace (as it is at
Dixons). We retain forecasts for now and reiterate
our ‘sell’ recommendation as performance across
the group has been as expected. The UK accounts

” ”
the view that the shares are not expensive for over 25 per cent of sales but is a very
on fundamentals and have reasonable small portion of profits and this needs to
upside on an alternative scenario. show a step change.

KEITH BOWMAN | HARGREAVES LANSDOWN

“
ANALYSIS l Kesa Electricals
When balancing recent share price strength against still intense competition and accompanying cautious man- 180 p 169.60

”
agement comments, market consensus opinion currently denotes a ‘hold’. Half-year profits have exceeded forecasts, aided 08 Dec
by a management focus to increase online sales. A previously announced strategy to emulate many of the initiatives
being pursued by rival DSG has also played its part. 160

140

13 Sep 1 Oct 21 Oct 10 Nov 30 Nov

Kesa profit is
up but Comet
falling behind
▲

RETAIL However in the UK competition

BY JOHN DUNNE
ELECTRICALS group Kesa yesterday
reported a 52 per cent rise in profit –
helped by sales of televisions for the
World Cup in the summer.
But losses at its UK arm Comet
increased to £5.4m from £1.5m, as the
bill for store revamps and tough trad-
ing conditions took their toll.
The company said it would intro-
duce ranges of new electrical acces-
sories as well as smaller electrical
goods in an attempt to reverse the for-
tunes of the UK’s second largest elec-
tricals retailer.
Revenues at Kesa rose by 4.1 per
cent overall with profit at its French
business Darty up 16 per cent, in the
six months to 31 October.
Meanwhile internet sales jumped
23 per cent across the group.
Darty operates in ten countries and
is the market leader in France.
from Dixons Retail, which owns
Currys and PC World, has been
strong, making life tough for Comet.
Kesa chief executive Thierry Falque-
Pierrotin said the company was
expecting tough UK conditions into
next year, while he was pinning
hopes for Christmas sales on iPads
and designer coffee machines.
“Things are diffIcult but we have a
plan for Comet. Ît’s obviously a tough
market in the UK.
“We think the iPad and other
tablets will be strong at Christmas.”
The company hiked its interim div-
idend by 15 per cent.
It also said it had not seen its sales
hit by the arrival in the UK of US elec-
tricals giant BestBuy. Falque-Pierrotin
also played down any chance the
company could be broken up after
rumours that major US shareholder
Knight Vinke would push for such a
deal.

AG Barr to hit Crackers boost

target for year for Greetings
▲

LEISURE
SOFT drinks group AG Barr said third-
quarter revenue grew 6.4 per cent and
the firm would meet its full-year
plans despite stiff competition.
The company, best known for its
bright orange Irn-Bru drink, said yes-
terday general economic conditions
continued to be tough with the price
of raw materials increasing.
“However, we expect to continue to
mitigate these cost pressures and con-
sequentially we remain confident of
delivering our plans for the full year,”
the company said. Its shares have
gained more than a quarter of their
value over the past year.
CONSUMER
INTERNATIONAL Greetings, the cards
and wrapping manufacturer, yester-
day reported a surge in demand for
Christmas crackers.
Total first-half sales rose 13 per cent
to £104.5m, with pre-tax profits more
than doubling from £1m to £2.1m in
the six months to the end of
September.
Chief executive Paul Fineman said
the company will sell 70m crackers
this year, up from 55m last year, with
its Chinese factory churning out
more than one million a day during
its peak production months in the
summer.
CITYA.M. 9 DECEMBER 2010 News 19

Game Group profit hit as

price promotions weigh
sales trends had improved in recent cautious about the outlook for 2011
▲

RETAIL
BY HARRY BANKS
COMPUTER games retailer Game
Group said its profit margins would
fall by more than expected as it steps
up promotions to lure cash-strapped
shoppers and maintain share in a cut-
throat competitive market.
Game, which has been hit by the
absence of new games console
launches this year, said yesterday
weeks, helped by new title launches
such as “Call of Duty: Black Ops” and
“FIFA 11.”
It also has high hopes for
Microsoft’s Kinect motion-sensitive
gaming product, which Britain’s
biggest retailer Tesco tipped to be a
top-seller this Christmas.
However, Game said hard-pressed
shoppers were becoming ever more
focused on bargains, and it remained
amid a continued lack of new console
launches.
“Consumers appear to be more
deal hungry, more value-seeking
than perhaps they were even last
year,” chief executive Ian Shepherd
said. Britain’s retailers are worried
that higher taxes and public spend-
ing cuts aimed at reducing govern-
ment borrowing will hit consumer
demand in the months ahead. Game chief executive Ian Shepherd has high hopes for Microsoft’s Kinect motion-sensor

A Twentieth Century business model

can’t keep up with leaner competitors
THERE isn’t anything particularly
wrong with the way management
is running Game Group. Like-for-
like sales are still falling, an
inevitability when one considers
the unbelievable hype that sur-
rounded the Nintendo Wii last year,
but the declines are starting to nar-
row. The firm’s decision to focus on
market share also appears to make
sense, as does its focus on high-qual-
ity, knowledgeable staff.
But the truth is that Game Group
has a distinctly Twentieth Century
business model, despite its focus on
all things cutting-edge.
Winning market share is all well
and good, unless your competitors
include the likes of Tesco. There is
no way that Game Group can win
market share without squeezing its
margins even further. Nor is its pur-
chasing power a match when pitted
against the world’s third largest
retailer.
Similarly, while its focus on
expert staff – who cost more to
train and pay – might be laudable,
it won’t necessarily drive sales.
Today’s consumers get their advice
from blogs and online reviews, not
from sales assistants. The only way
that Kesa’s Comet and DSG’s Currys
have managed to survive is by cut-
ting staff costs and reducing prices
to compete with online rivals. If
there is any long-term future for
Game, it must do the same.
BOTTOMLINE
Analysis by David Crow

GIEVES&
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HAWKES
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Thursday 10am - 7pm
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o n d i t i o n s apply
apply
 20 News CITYA.M. 9 DECEMBER 2010

Helical raises £29m in ten BEST OF THE BROKERS

ANALYSIS l Xstrata
1,451.50
XSTRATA

per cent share placement

1,500 p
08 Dec
Standard & Poor’s rates the miner “buy”
with a target price of £14.61. The broker
1,400 was impressed by the firm’s confident out-
look at a recent investor day, when it
1,300
announced $23bn extra investment over
the next five years that S&P thinks will
accelerated bookbuild following an ANALYSIS l Helical Bar 1,200
grow volumes by 80 per cent compared
▲

PROPERTY
BY ALISON LOCK initial announcement in the morning. 340 p
The price was a slight discount on 1,100
with 2009. It adds the firm is also likely to
PROPERTY investor and developer yesterday’s trading price of about benefit from growing supply constraints.
Helical Bar successfully raised £29m 275p but above Helical’s 261p first- 320 281.00 13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
08 Dec
in a new share placement yesterday. half net asset value on 30 September.
The 10.73m shares sold equate to An analyst who did not wish to be 300 ANALYSIS l Whitbread WHITBREAD
about ten per cent of the company’s named said it was heartening to see 1,850 p 1,812.00 Numis rates the leisure group “buy” with
total share capital and the sale is the placement did not dilute NAV. He 08 Dec
designed to help it fund unspecificed remained wary because a similar 280 an increased target price of £22, from
UK real estate opportunities. £28m placement last year was largely 1,750 £20.50. It expects the firm’s management
Helical’s broker JP Morgan Cazenove used to de-gear its balance sheet 260 statement next Tuesday to be in line or
placed the shares at 270p each in an rather than seek new investment. 13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
1,650 above its recent performance, with
Premier Inn growing well. It adds that rev-
1,550 enue per available room continues to
increase, albeit at a slower pace towards
the end of 2010 on increased competition.
13 Sep 1 Oct 21 Oct 10 Nov 30 Nov

ANALYSIS l Vodafone 164.15 VODAFONE

L AC E AT
E NMT
OUR P
PL 175 p 08 Dec Royal Bank of Scotland rates the mobile

E V
EC U R E Y
YO
R Y
S
SE
N A
phone firm “sell” with a target price of
L I
U N IQ U E CU OPPSS, WHO HAVE GIIVVEENN SSOO UC
170 120p. It warns that a dividend from its
A
H
stake in Verizon is still far from certain,
D TR
ROO
OR OU R WO U N D E
ED with Verizon’s chief executive recently hint-
NG F
SIIN
R A IIS FU FO
U N DS F 165
ing at inward investment rather than a pay-
out. The broker adds that Vodafone’s 2011
TH U R S DAY 10TH F E B R UA RY 2011 160 price to earnings ratio of 12.7 is far above
6.15PM ‚ G UILDH A LL 13 Sep 1 Oct 21 Oct 10 Nov 30 Nov
the rest of the sector, making it expensive
compared to peers.
The splendour of Guildhall, an introduction to the To appear in Best of the Brokers email your research to notes@cityam.com
evening by Mayor of London Boris Johnson and
a line up of internationally acclaimed chefs, each
personally presenting a gourmet course on the night.
All the ingredients for the year’s not-to-be-missed
culinary experience.

AUS E
TH E C
Raising funds to build and run Personnel Recovery
Centres, for wounded troops in need of support on Ian Norris faces
their return from active duty. sentencing
tomorrow

Picture: REX

TH E E
V E NT Wo r k i ng to g e t h e r w i t h Norris fails in
his US appeal
THE RECE EPTION – Attended by Mayor of London, Boris Johnson
CANAPES AND SUSHI
Served by Martyn Nail, Claridges and Simon Young, Jumeirah Carlton Tower
THE BANQUET – Hosted ted byy Brian Turner OBE
S
STARTER
TARTER Albert Roux OBE & Glen Watson
FIRST COURSE Mark Flanagan, The Royal Chef, The Royal Household
& Christian Garcia, Chef to HSH Prince Albert II of Monaco
▲

FISH COURSE Philip Corrick, Royal Automobile Club COURTS

telecommunications industries.
& Matthew Marshall, Chamberlain’s BY DAVID HELLIER Norris retired from Morgan
MEAT COURSE John Williams MBE, The Ritz & Jason Atherton IAN Norris, the former chief executive Crucible in 2002 after battling
Tables of 10 people are priced DESSERT
DESSERT Benoit Blin MCA, Le Manoir Aux Quat Saisons of Morgan Crucible, has lost an prostate cancer and was indicted the
at £ 3 , 5 0 0 plus VAT PETIT
PETIT FOURS William Curley, Best British Chocolatier 2007-2009 appeal against a conviction in the US following year. The cartel, which
courts of conspiracy in July, City A.M. began in Europe, spread to the US in
Each course served with carefully selected wines. has learned, leaving him to possibly 1989.
TE R S
Military pageantry will feature throughout the evening.
PPOR
face a five-year prison term when he US authorities refused to allow
SU is sentenced tomorrow. Norris to be extradited on price-fixing
OR S
PON S Norris, who is the first foreign charges because such activities
AND S SSponsors
po n so r s &
ssupporters
u p p o r te rs defendant to face charges in the US weren’t a crime in Britain at the time.
Event
E ve n t arising from a criminal antitrust They then pressed conspiracy and
organiser
o rg a n is e r investigation, lost his appeal last obstruction counts and a London-
& ssponsor
po n so r
week, according to his UK lawyer based court backed the extradition.
Alistair Graham of the law firm Norris was accused of ordering sub-
White & Case. ordinates to destroy files describing
Graham says that Norris, who is in secret talks among European makers
his late sixties and has suffered from of carbon and graphite products
TO
TO SECURE
SECU RE YOUR
YOU R PLACE
PL ACE AT AT THIS
THIS EXCLUSIVE
EXCLUSIVE EVENT
E VENT contact
contact A
Alessio
lessio prostate cancer, has been in a prison about fixing prices.
in Philadelphia since July. “The sentencing of Norris will be
on 020
on 020 77648
648 8
8694,
694, eemail
mail &--#)ž"',&#(-)Ő)()(|)'
&--#)ž"',&#(-)Ő)()(|)' or
or visit
visit Morgan Crucible makes body seen as a significant development in
1 1 1|"',&#(-)Ő)()(|)' armour, carbon items, ceramics, bear- global antitrust enforcement,” said
ings and other products for the med- Michael O’Kane, head of business
ical, automotive, aerospace and crime at Peters & Peters.
CITYA.M. 9 DECEMBER 2010 News 21

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

Monitise
Monitise, the mobile money firm, has appointed
Sushovan Hussain (pictured) to the board as a
non-executive director. Sushovan has worked at
Autonomy Corporation and LASMO. In addi-
tion, Monitise has hired Peter Radcliffe as
chairman of emerging markets. Currently a
non-executive director, Radcliffe will move to
the management side of the business to over-
see the development of Monitise’s operations in
Asia Pacific.
HSBC Private Bank and eastern Europe with the appoint-
HSBC has hired a new head of central ment of Alla Fedorova. Fedorova moves
over from Merrill Lynch Global Wealth
Management and will be leading the
growth of the relationship team in his
region. Previously, she has worked as
managing director of Tilney Investment
and she has 15 years’ experience in
financial markets and investment man-
agement.
Grosvenor Fund Management
As part of its expanding Asian opera-
tions, Grosvenor Fund Management has
appointed Morgan Laughlin to the new
role of managing director of the fund’s
Asia Pacific activities. He will begin his
new role in January 2011.
Cushman & Wakefield
Cushman & Wakefield has made a sen-
ior hire to its UK retail team, appointing
Chris Parfitt as a partner. He moves
over from Centros and has formerly
worked at PRUPIM. He will be working
with Steve Morgan, James Merrett, Oli
Christy and Will Grant on the southern
retail team.
Standard Life
Standard Life has appointed Mark
Hesketh as UK finance director. He
moves over from RBS where he was
director of financial planning. Previously,
he has worked at RBS Insurance.
Allocate Software
Richard King, deputy managing partner
of Ernst & Young, has joined the board
of AIM-listed Allocate Software. His
appointment will take effect from
January.
Syndicate Asset Management
Mark Chesire has joined the board of
Syndicate Asset Management as a
group director of sales.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

FTSE to touch The full 360 degree picture

6,300 in 2011, at your fingertips

finds survey
ratings

research

“With the US more than likely to

▲

MARKETS market views

BY HARRY BANKS
BRITAIN’S FTSE 100 is seen gaining
more than eight per cent by the end
of 2011, with equity investors shrug-
ging off economic gloom, a Reuters
poll, published yesterday, found.
The median forecast of 19 equity
strategists indicated the FTSE 100
would rise to 5,950 by mid-2011, up
2.4 per cent from its close on Tuesday
of 5,808.45, and up 8.5 per cent by the
end of the year.
The median estimate was almost
unchanged from a September poll for
mid-2011. Forecasts for this period
ranged from 5,000 to 6,500, highlight-
ing the uncertainty on whether
European debt problems and a vul-
nerable economy could hit equities.
“Eurozone stability is key to index
performance over the coming
months,” Martin Dobson, director at
Westhouse Securities, said.
supply more quantitative easing, the
focus is on whether further bailouts
will be required in the Eurozone.”
The FTSE peaked in 2010 at 5,902.11
on 9 November, but quickly fell away
as Ireland became the latest alerts
Eurozone nation to become
embroiled in a sovereign debt crisis.
Out of 12 common contributors,
eight upgraded their mid-2011 tar-
gets, while four downgraded theirs news
from the last poll in September.
Forecasters in the same poll taken a
year ago called the FTSE’s 2010 per-
formance about right – they said it
would rise just over seven per cent,
compared with actual gains of 7.31
per cent so far this year. The FTSE 100
has gained around seven per cent in
2010 and is 21 per cent higher since
hitting its 2010 low on 1 July, and is
forecast to reach 6,300 by the end of
2011 as investors focus on the ability
of companies to grow profits.

CITY VIEWS: DO YOU THINK THE FTSE 100’S RALLY RatingsDirect® on the Global Credit Portal
WILL CONTINUE? Interviews by Thomas Hamed
See the full spectrum.

ALI ALIDJAN | THOMAS EXCHANGE
“I find every bit of this good news, because things are get-
ting much better. Investors have more confidence in the
future. Everything that’s low is only going to get bet-
RatingsDirect on the Global Credit Portal provides you with real-time
access to integrated credit ratings, research and risk analytics, all on one
web-based platform. Standard & Poor’s credit analysts give you a local
perspective on 16 million credit ratings and over 500,000* research reports,
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ter again.” Monitor your credit risk with breaking news and early warning signals.
Enhance your analysis with the latest credit ratings, research and rationales.
GAVIN CLARK | GARTMORE Boost your productivity with aggregated data sets and graphs that supports
your analysis.
“I think it could be too early to tell. For one thing, the
housing market is weak. For another, the UK economy is * As of October 2010
buoyed by financial services, which could be the
Achilles’ heel of the economy.”
To request a complimentary trial, visit www.standardandpoors.com/ratingsdirect or email emea-marketing@standardandpoors.com

GEORGE HOLOFONOS | SELECT CONNECTIONS
“To be honest, I don’t think this movement indicates
anything yet. Shares go up and down all the time. There
are other issues that show this rally may not be
The credit-related analyses, including ratings, of Standard & Poor’s and its affiliates are statements of opinion as of the date they are expressed
and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. Ratings, credit-
related analyses, data, models, software and output therefrom should not be relied on when making any investment decision. Standard & Poor’s
opinions and analyses do not address the suitability of any security. Standard & Poor’s does not act as a fiduciary or an investment advisor.
Copyright © 2010 by Standard & Poor’s Financial Services LLC (S&P) a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved.
STANDARD & POOR’S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC.

sustainable.”
 Markets&Investment
22 CITYA.M. 9 DECEMBER 2010

LONDON’S TOP 250

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 Group 319.5 -2.5 326 250 Colt Telecom 129 -2 142.5 109 John Wood Group 493 -7 503.5 285 RSA Insurance Grp 125.5 1.75 136.5 114.75
3i Infrastructure 117.5 -2.5 120 97 Compass Group 586 -2.5 588.5 425 Johnson Matthey 1907 -46 1973 1446 SABMiller 2146 1.5 2157 1650
A.B. Foods 1106 -30 1136 804.5 Cookson Group 600.5 -21.5 622 367.5 JPM Flem.Emerg Mkt. 609 -3 621 450.5 Sage Group 281.5 -4.25 289 220
Aberdeen Asset.Man. 196.5 -4.5 201 112.75 Croda International 1550 -60 1610 749.5 Jupiter Fund Man 307.5 -2.5 310 180.25 Sainsbury (J) 372.25 -0.5 395 313
Admiral Group 1575 -40 1693 1088 Daily Mail & Gen 540.5 5.5 567.5 404 Kazakhmys 1523 -31 1630 965 Schroders 1768 11 1768 1116
Aegis Group 142.75 -2.75 145.5 103.5 Davis Service 409.5 -0.5 435 360.25 Kesa Electricals 169.5 -2.25 174 99.25 Schroders NV 1402 12 1402 929.5
Afren 138.25 -5 143.25 79 De La Rue 836 -11 1005 549.5 Kingfisher 255.75 -3.25 259 198.5 Scot.& Sth. Energy 1111 -10 1198 1010
African Barrick Gold 600 0 670 503 Debenhams 73.75 -1 84.25 53 Ladbrokes 126.75 -0.25 162.75 123.5 Scottish Mortgage 692.5 -6.5 699 475
Aggreko 1531 -7 1685 794 Derwent London 1510 -10 1605 1208 Lancashire 529 -79.5 647 422.25 SEGRO 290 -1 352 250.25
Alliance Trust 364.25 -2.25 366.5 293.5 Dexion Abs 138.25 -1.25 148 131.25 Land Securities 652.5 -6 696.5 545 Serco Group 567 2 651 494.25
Amec 1146 -9 1155 733.5 Diageo 1158 13 1193 1000 Legal & General 98 0 106.25 69.75 Severn Trent 1449 3 1468 1010
Amlin 393 0 433 357.25 Dixons Retail 25.25 0 38 23.75 Lloyds Banking Grp 67.75 1 77.5 46.5 Shaftesbury 431.75 -3.5 460 349.25
Anglo American 2970.5 -91.5 3062 2254 Domino’s Pizza 536.5 -3.5 552.5 280.75 Logica 123 1 148 101.75 Shire 1487 -16 1567 1159
Antofagasta 1510 -18 1528 761 Drax Group 369 -3 444 326.25 London Stock Ex. 792 -7.5 799.5 544 SIG 123 1.75 137.75 90.75
Aquarius Platinum 361.25 -5.75 458 227 DS Smith 192.25 4.5 200.75 104 Lonmin 1804 -31 2157 1355 Smith & Nephew 662 55 696.5 537.5
ARM Holdings 399.75 -0.25 414.5 167.25 Dunelm 508.5 -7 532 325.25 Man Group 278.25 -5.25 327.5 202 Smiths Group 1229 2 1285 954
Ashmore Group 368.25 -9.75 383.75 218 easyJet 430 -6 496.5 341.5 Marks & Spencer 385.25 -2.75 427.5 323.5 Soco International 363.5 1.75 484.25 292
Ashtead Group 143.75 -6.25 150 67 Edin.Inv.Tst. 442 -2.5 464.25 351.5 Meggitt 362.25 -4.75 367.5 239.25 Spectris 1205 -15 1222 691.5
AstraZeneca 3044 16.5 3385 2732 Electrocomponents 272.5 -7 279.5 161.75 Melrose 298.5 -3.5 304.25 162 Spirax-Sarco 1904 0 1904 1094
Atkins (WS) 724 -4 792.5 556.5 Enquest 140 -6.5 146.5 89.25 Mercantile Inv Tst 1055 -11 1066 822.5 Spirent 154.5 -4.5 160.25 92
Autonomy 1341 -11 1975 1271 Essar Energy 570 0 570 383 Michael Page 508 -1 513.5 346.5 Sports Direct 143 -2.5 152.75 92.25
Aveva Group 1570 -19 1589 942.5 Eurasian Nat Res 931 -13.5 1266 818 Micro Focus 373.75 15.75 546.5 276 St James’s Place 276.75 2.5 292 204.25
Aviva 389 6.25 423.5 294.25 Euromoney Inst. 720 5 720 411 Millennium & Cop. 540.5 -12.5 570 342 Stagecoach Group 212 -3 224 157.75
Babcock International 558.5 3 635 492.75 Experian Group 783.5 -2.5 789 572 Misys 302 -2.25 304 200.5 Standard Chartered 1878 36 1950 1351.75
BAE Systems 325 0 388.75 294.75 Ferrexpo 370.75 -2.5 396 179.5 Mitchells & Butlers 355.25 -3.75 359 247.5 Standard Life 210.25 4.25 236 173
Balfour Beatty 294.25 1.75 303 229.75 FirstGroup 385.5 -1.5 426 336 Mitie Group 219.5 -3 241 188.75 Supergroup 1557 -26 1638 535
Barclays 264.25 1.5 383.25 255.25 For.&Col.Inv.Tst 300.25 -2.75 303 251.5 Mondi 485.25 -10.5 557.5 321.5 TalkTalk 164 0 164 108.5
Barratt Development 86.75 0.5 142 70 Fresnillo 1527 -78 1605 669.5 Monks Inv.tst. 351.25 -3.75 355 265.5 Talvivaara Mining 540 -6 581 342.5
BBA Aviation 211 2.75 217.25 152 G4S 249.5 11.25 283.5 237.75 Morrison (Wm) 274.75 2 306.25 257.5 Tate & Lyle 535.5 -6 541.5 388.75
Bellway 616 3.5 826 511 Genesis E.m.f. 530.5 -12 542.5 399 Murray Int.Tst 928 -6 936 720 Taylor Wimpey 28.75 -0.25 44 22.25
Berkeley Grp Hldgs 907.5 -2 909.5 742 GKN 206 1 210.5 102 National Express 229.5 -6.5 259.5 181
BG Group 1287.5 10 1296 984 GlaxoSmithKline 1246.5 4.5 1339.5 1095 National Grid 544 -3.5 613.25 484.25 Telecity Group 485.5 7 532.5 335
BHP Billiton 2428 -53 2481 1684.5 Great Portland Est. 349.25 -1.5 364 268 Next 2060 -11 2344 1817 Templeton Emrg. 651.5 -8.5 685 471.5
BlackRock Mining 767.5 -3.5 771 492 Greene King 471 -6.5 477.5 376.25 Northumbrian Water 328.75 0.25 361.5 252.75 Tesco 425.5 -4.5 454.5 377.5
BlueBay 484 -0.5 489.25 258 Halfords Group 435 -0.25 550 372.75 Ocado Group 158.5 -6 170 123.5 Thomas Cook Group 184.25 0 272 171.75
BlueCrest AllBlue 170 -3 174.5 152 Halma 350.75 -2.5 353 223 Old Mutual 119.25 0.75 145.25 97.25 Travis Perkins 951 0.5 951 664.5
Booker Group 59.75 -0.25 60 38.75 Hammerson 411.25 -3.5 434.5 336.25 PartyGaming 242.5 -10.5 334.5 206 TUI Travel 234 -1.5 308.5 190
BP 456.5 1.5 655.5 303 Hargreaves Lansdown 508 -12 520 265.25 Pearson 1010 8 1051 848.5 Tullett Prebon 381 0 417.25 262
Brit Insurance 1035 -2 1045 720 Hays 120.25 1.5 123.5 88.5 Pennon Group 633.5 0 639 483 Tullow Oil 1212 -3 1369 991.5
British Airways 272 2.5 286 184.25 Henderson Group 124 -3.25 151.75 112.75 Persimmon 410.25 -6 507.5 336.5 UK Commercial Prop 77.25 -0.5 85 72.75
British Amer.Tob 2376.5 16.5 2464.5 1922 Heritage Oil 410.25 -4.5 581 296.75 Petrofac 1484 -33 1540 876.5 Ultra Electronics 1647 -28 1895 1265
British Empire Tst 488 -9.5 497.5 394 Hikma 790.5 -7 804.5 506 Petropavlovsk 1149 -16 1365 852 Unilever 1898 -8 2015 1688
British Land 510 0 520 418.25 Hiscox 360 2.25 370 300 Phoenix Group Hldgs 645.5 -4 758 557.5 United Utilities 589 -2 628.5 488.25
Britvic 466.25 -10.75 518 373 Hochschild Mining 630 -28 658 234 Premier Farnell 303 -1.5 304.5 158.5 Utd Business Media 657 0 682.5 409.75
Brown (N.) Group 291 -9 301 206.5 Home Retail Group 199.5 -5.75 304.25 199.5 Premier Oil 1912 -26 1938 1017 Vedanta 2215 15 2934 1839
BSkyB 730.5 -0.5 731 524.5 Homeserve 451.25 -6.5 487.5 322.75 Provident Financial 820 5 974 728.5 Victrex 1442 94 1442 788
BT Group 177.75 -0.25 178 110 HSBC Holdings 659 -6.5 740.5 596.25 Prudential 634.5 22.5 653 487.5 Vodafone Group 164.25 -1 175 129.5
Bunzl 724.5 0 777 616.5 Hunting 696.5 3.5 696.5 439.5 PZ Cussons 393 -6 409 234.75 Weir Group 1815 -17 1861 669
Burberry Group 1156 26 1156 566.5 ICAP 522 3 528 294 QinetiQ Group 122 -2.25 167 96.75 Wellstream Holdings 745 -5.5 789 436
C&W Comms 48.25 0 63.75 44.25 IG Group 516.5 -1 553 360 Randgold Res 5700 -205 6655 4209 WH Smith 515.5 -4 529.5 398.25
C&W Worlwide 66 0.25 100 60.5 Imagination Tech 388.5 -11 441.75 215 RDS ‘A’ 2035 -4.5 2100.5 1624 Whitbread 1812 7 1812 1266
Cairn Energy 413.75 1.75 493.25 303.5 IMI 923.5 -24.5 948 504.5 RDS ‘B’ 2020 2 2064.5 1554 William Hill 167 -1.25 216.5 155.5
Caledonia Inv. 1836 -21 1857 1511 Imperial Tobacco 1920 15 2154 1753 Reckitt Benckiser 3469 -15 3655 3037 Witan Inv Trust 493.5 0.5 493.5 410
Capita Group 689 17.5 826 635.5 Inchcape 368 3.25 368 237 Reed Elsevier 515 -4.5 563 460.5 WOLSELEY 1855 -25 1880 1166
Capital & Counties 146 -2 157 100 Informa 402.25 -4.5 448 285 Regus 83.5 0.5 120 66 WPP Group 763 -1 764 572.5
Capital Shop Centre 386.25 -21.75 411.5 301 Inmarsat 675.5 1.5 821 606.5 Renishaw 1200 -18 1235 516.5 Xstrata 1451.5 -9 1460.5 845.75
Carillion 370.75 16 370.75 273 InterContinental Htl 1215 -15 1230 867 Rentokil Initial 92 1.5 138.5 87.75
Carnival 2710 35 2920 2037 Intermediate Cap.Grp 320.75 -0.25 351 240.5 Resolution 231.25 5 349 211.25
Catlin Group 354.5 -1.5 393 320 International Pers Fin 339.5 0 340 183.25 Rexam 305 -1.5 346.75 272.5 LONDON TOP 250 BY MARKET CAPITALISATION
Centamin Egypt 180 -3 197 106.75 International Power 415 1.5 436.75 284.25 Rightmove 754.5 -7.5 810 464
Centrica 319 2 346 257.75 Intertek Group 1972 1 2000 1150 Rio Tinto 4370 -135 4505 2812 POWERED BY
Charter 767.5 -1.5 848.5 567 Invensys 345.25 -0.5 349 230.25 RIT Capital Partners 1158 -7 1210 960
Chemring Group 2946 -46 3663 2598 Investec 497.75 -8.75 562 413.25 Rolls-Royce Group 652 2 654.5 473.5
Close Brothers 832.5 9 832.5 664 ITV 72.75 2 72.75 48.25 Rotork 1730 -12 1895 1145 www.digitallook.com
Cobham 196.5 0.5 276 192.25 Jardine Lloyd 601 -1.5 602.5 445.75 Royal Bank of Scot 41 0 58 28.5
CITYA.M. 9 DECEMBER 2010
Fall in mining shares takes its Bank share surge
toll as FTSE 100 closes lower boosts Wall Street
THELONDON
REPORT
W
EAKNESS in heavyweight
miners dragged the leading
share index lower yesterday,
although firmer banks,
energy issues and some takeover spec-
ulation helped limit the falls.
At the close, the FTSE 100 was
down 13.92 points or 0.2 per cent at
5,794.53, having hit a three-week
high on Tuesday.
“It has been a choppy trading ses-
sion today with a lack of significant
economic data giving the market
very few ... drivers,” said Giles Watts,
head of equities at City Index.
“As a result, traders have been
largely going through the motions
with the markets drifting sideways.”
Miners fell back as metal prices
eased on the back of a stronger dol-
lar, after US Treasury yields surged
on a proposed extension in US tax
cuts, and as concerns over potential
rate hikes in China weighed on senti-
ment.
Silver miner Fresnillo and gold
miner Randgold Resources were
among the worst off, down 4.9 and
3.5 per cent respectively.
Capital Shopping Centres was the
biggest FTSE 100 faller, shedding 5.4
per cent after shareholder Simon
Property said it might sell its 5 per
cent stake in protest over CSC’s 1.6bn
pound plan to buy a UK mall, which
it sees as value destructive.
Ex-dividend factors weighed on
Associated British Foods and
Investec, while 3i Group and Vedanta
Resources also lost their payout
attractions.
Most banks managed to rally on
relief at a lack of fresh concerns
about European sovereign debt,
although global bank HSBC fell 1 per
cent, weighing the sector down.
Part-nationalised Lloyds Bank
gained 1.4 per cent, while Standard
Chartered added 2 per cent ahead of
a trading update due today.
Insurers were also in demand, led
by Prudential, up 3.7 per cent, with
UBS adding the firm to its “Key Calls”
list and raising its price target, citing
growth prospects in Asia.
Integrated oils were buoyed by
gains in BP, up 0.4 per cent, helped
by a bullish note from Morgan
Stanley.
A smattering of takeover specula-
tion also helped out.
Smith & Nephew was the top blue
chip riser, up 9.1 per cent. The Daily
Mail’s market report noted talk of a
7.1bn pound, or £8-a-share cash offer
Investment | Markets & Investment
from a US private equity consortium
for the medical products firm.
Burberry climbed 2.3 per cent as
traders cited rumours of bid interest.
And security services group G4S
added 4.8 per cent as traders pointed
to the clearance of a big stock over-
hang and European sector consolida-
tion hopes.
US blue chips were down 0.2 PER
cent by London’s close, weighed by
dollar gains and higher bond yields.
The FTSE 100 index is seen gaining
more than 8 per cent by the end of
2011, with equity investors shrugging
off economic gloom, a Reuters Poll
found.The median forecast of 19
equity strategists indicated the FTSE
100 would rise to 5,950 by mid-2011,
up 2.4 per cent from its close on
Tuesday of 5,808.45, and up 8.5 per
cent by the end of the year. The medi-
an estimate was almost unchanged
from a September poll for mid-2011.
ANALYSIS l FTSE 5,794.53
08 Dec
5,900
5,800
5,600
5,400
6 Sep 24 Sep 14 Oct 3 Nov 23 Nov
THENEW YORK
REPORT
U
S stocks edged higher yesterday
as gains in financial and tech-
nology stocks offset declines
caused by a recent surge in
bond yields.
Bank stocks have risen 10 per cent
since the start of the month as bench-
mark yields climbed enough to make
lending and trading more profitable.
“What’s giving the financials a lit-
tle boost is a more positively sloped
yield curve, which means better prof-
it for them,” said Joseph Battipaglia,
market strategist at Stifel Nicolaus in
Yardley, Pennsylvania.
Yields reached a six-month high
this week after the initial deal
reached in Washington to extend tax
cuts fuelled concern about inflation
and the government’s debt burden.
JP Morgan Chase & Co gained 2.6
per cent to $40.27. The KBW Bank
index climbed 2.9 per cent.
By the same token, the higher bond
yields capped gains on the major
stock indexes as they make it more
expensive for consumers and busi-
nesses to borrow, while stocks and the
23
dollar have moved in opposite direc-
tions of late. A rise in yields and the
dollar could also draw money away
from equities.
Technology shares helped lift the
Nasdaq, led by semiconductor stocks
after solid outlooks from Texas
Instruments and Novellus Systems.
Texas Instruments gained 1 per-
cent to $33.75 while Novellus climbed
2 per cent to $32.40. The PHLX
Semiconductor index rose 1 per cent.
On the Dow, McDonald’s was the
biggest drag, falling 2 per cent to
$78.74 after reporting weaker-than-
expected global sales for November.
The Dow Jones industrial average
gained 13.32 points, or 0.12 per cent,
to 11,372.48. The Standard & Poor’s
500 Index gained 4.53 points, or 0.37
per cent, to 1,228.28. The Nasdaq
Composite Index gained 10.67 points,
or 0.41 per cent, to 2,609.16.
The S&P faces resistance at the
1,228 level, which represents the 61.8
per cent Fibonacci retracement of the
2007-2009 bear market slide, a key
technical indicator.
Some analysts expect the market to
trade sideways for a few days before
moving upward into the year’s end.
Bob Doll, chief investment strate-
gist at BlackRock, said the deal to
extend the Bush-era tax cuts should
accelerate the move of cash into equi-
ties and out of fixed income.
 24 Investment | Listed Products
Unwrapping a
complex fund:
the need for
transparency
Providers have stepped up efforts to contain
investors’ fears about swap-backed ETFs,
write Jessica Mead and Daniel Knowles
T
RANSPARENCY has been one of the
buzzwords of exchange-traded
funds (ETF) since they arrived here
in Europe just over a decade ago.
Providers have been keen to push just how
transparent their products are.
But the way that synthetic ETFs are cre-
ated has clouded the issue somewhat,
especially in the wake of the financial cri-
sis. Synthetic ETFs have come under fire in
the last 12-18 months for not disclosing in
sufficient detail which securities they
actually hold and consequently, what
investors are exposed to.
Therefore, providers have been on some-
thing of a transparency drive with
Deutsche Bank’s ETF division db x-trackers
the latest to join the party. Investors using
db x-trackers will be able to see an ETF’s
composition in terms of security type, sec-
tor, country and currency, which will be
updated daily.
Credit Suisse was the first European ETF
provider to publish daily collateral hold-
ings while BlackRock’s iShares has a simi-
lar promise on its recently launched
swap-based platform. Source ETF publish-
es benchmark constituents and weight-
ings on a daily basis.
A winning investment in Russia ETFs
But investors need to
explore the types of
exposure to growth
available to them,
says Donata Huggins
B
ARING Asset Managers were proba-
bly the only people in England to
find an upside to Russia winning
the bid to host the 2018 World Cup
last week. They believe that the win
offers us a better case for investing in the
emerging giant. Indeed, the improved
infrastructure and reputation that comes
with hosting the Cup will have an impact
on the economy. But what is the best way
for investors to expose themselves to
this?
Single country funds have always been
a tricky business. Investors know that
they take a gamble when they put all
their eggs in a one-country basket. But
the temptation for exposure to an emerg-
ing market’s growth can sometimes be
too much to resist. If you are drawn to
CITYA.M. 9 DECEMBER 2010
Unlike traditional ETFs, synthetic ETFs
hold a basket of securities that may be
completely unrelated to the index they
are tracking. The ETF provider will then
typically enter into a swap arrangement
with a counterparty – usually an invest-
ment bank – where the performance of
the basket is exchanged for the perform-
ance of the reference index.
Indeed, occasionally the swap perform- Make sure you find swap basket to clients on request. It also Lionel Phillips-Franjou, head of product
ance has been so good that the ETF has out what is inside does not lend out assets held in the basket development for Lyxor ETF, adds: “We
actually been outperforming the underly- to minimise counterparty risk. make sure that the ETF is sufficiently liq-
ing index, points out John Davey, senior Picture: ALAMY
analyst at BestInvest. ANALYSIS l The collateralised swap structure of ETF Commodity Securities
OVERCOLLATERALISATION
Cash ETF provider Bank of New
Under Ucits 3 regulations, counterparty
Investors York Mellon
risk is limited to 10 per cent, which means CSL Access in Pledged
that the ETF issuer or the swap counter- case the a/c
party must provide collateral worth at SC defaults
least 90 per cent of the ETF’s net asset
value. Many providers now also choose to Swap Cash
“overcollateralise” – that is, hold more
than 100 per cent of the ETF’s net asset
value (NAV).
Although Lyxor ETF has decided not to Swap counter
do this, it is still keen to ensure that it party(ies)
remains transparent and will provide (SC) Post collateral daily
information about the composition of the Source: ETF Securities
Russia exchange-traded funds (ETF), it is
extremely important to you know exactly
Celebration after
securing the 2018
what type of stocks you are tracking.
Much like many emerging market
World Cup
indices the mainstream MSCI Russia is
heavily weighted in the energy sector Picture: GETTY
(55.8 per cent, see chart). This means that
you can be highly exposed to one compa-
ny: the oil giant Gazprom makes up 26.78
per cent of the index. You only have to
image what a BP-style crisis at Gazprom
would do to your capital to think twice
about investing.
But fear not, there are ways around
such exposure. Providers such as iShares
through its “capped” ETF ensure that you
won’t rely on any one stock dispropor- ANALYSIS l The sector weightings of the MSCI Russia index
tionately since it caps each stock in your
ETF at between 15-20 per cent of the Telecommunication
index. Services 5.62% Utilities
5.15%
Financials
MID-CAP EXPOSURE 15.19%
Alternatively, traders can track the RTS-2
index. Unlike the MSCI Russia it follows
small and mid-cap stocks, giving signifi-
cantly higher exposure to the telecom-
munications, banking and
ways to access the domestic recovery.
Alan Rambaldini, Morningstar’s
European ETF Analyst, suggests that
these types of stocks can offer the
Consumer
Staples
%
transportation sectors. These are precise- investor a good deal: “Emerging markets 3.55% Energy
ly the industries that Douglas Helfer, the small caps are often neglected and under- 55.8%
fund manager of the HSBC GIF Russia valued, so they do offer more potential by Materials
Equity fund, said this week were the best allowing the investor better access to 1542% Source: MSCI
CITYA.M. 9 DECEMBER 2010
uid and that it is managed in the proper
way, which includes strict risk monitor-
ing both at the level of counterparty risk
and in terms of diversification issues.”
Source also takes a different approach
and holds 99.8 per cent of its synthetic
ETF assets in listed equities and only
uses a small amount of derivatives in
return for significantly improved per-
formance, says Source’s Michael John
Lytle.
While BestInvest’s John Davey says
that any improvements to transparency
must be welcomed, he does say that
daily disclosures of collateral could be
seen as information overload for the
retail trader. But if you’re holding ETFs
in size, or simply interested in what you
are trading, then it’s worth checking
what your ETF is holding.
middle class growth.”
But when the oil price has hit a 26-
month high and is predicted to be in a
structural bull market that will carry
on into 2012, getting uncapped MSCI
exposure to the oil industry suddenly
doesn’t seem such a bad idea.
Rambaldini however advises that
investing straight into an Oil and Gas
ETF would be a more sensible option
because it provides a more diversified
way to gain exposure to the increase.
Keen Russia investors will find that
the ETFs available require them to
understand precisely what degree of
risk and exposure they are looking for.
When that is resolved they may well
find that they too will see the upside to
Russia’s winning bid.
LISTED PRODUCT NEWS
BY JESSICA MEAD
HSBC has set its sights on Turkey
To register 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 clarification at the registered office address The Royal Bank
of Scotland plc, Registered in Scotland No 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by
the Financial Ser vices Authorityy. RBS is an authorised
au agent of The Royal Bank of Scotland plc N.V in cer tain jurisdictions.
HSBC UNVEILS NEW TURKEY ETF
HSBC yesterday listed its MSCI Turkey
exchange-traded fund (ETF), expanding its
range of exchange-traded funds on offer in
Europe to 12. The ETF offers exposure to the
total return performance of the MSCI
Turkey Index. Like all other HSBC ETFs, the
Turkey product will employ physical replica-
tion. It has a total expense ratio of 0.6 per
cent and is listed on the London Stock
Exchange in both sterling and dollars.
Further registrations and cross-listings in
Europe are planned over the coming months,
Picture: GETTY HSBC said.
Investment | Listed Products
Keep the tills ringing
Picture: Micha
Theiner/ CITY A.M
WORLD’S FIRST INDUSTRIAL METAL ETCS
Trading in the world’s first physically backed
industrial metal exchange-traded commodi-
ties is scheduled to begin tomorrow. ETF
Securities launched three of these products
on Wednesday – copper, nickel and tin. All
have a management expense fee of 0.69 per
cent. It said it expects the remaining four
ETCs – aluminium, lead, zinc and a basket –
to be available for trading in 2011. Deutsche
Bank is to act as the metal agent, providing
trading, administration and custody services.
All creations and redemptions will be effect-
ed through a special purpose LME account.
25
THE
TIPSTER
HMV NEEDS UPTICK IN
CHRISTMAS SALES
R
ETAILERS have had mixed results
recently with supermarket Tesco
announcing bumper numbers and
Game Group doing the opposite.
HMV steps up to the plate today and
investors will want to know if the Christmas
season is providing a welcome uptick in
sales. The share price has performed poorly
so far in 2010 but it seems to have found
support around the 40p mark. Capital
Spreads quotes 44.1p-44.9p for HMV’s
share price.
The stock of Desire Petroleum has
spent the year lurching from lows of 36p to
highs of almost 180p as the fortunes of the
AIM-listed oil exploration company contin-
ue to fluctuate. This week’s news that
drilling off the Falklands had been unsuc-
cessful served as a hammer blow to the
stock but the subsequent rebound cannot
be overlooked either. If past performance
is anything to go by, further significant
swings in price will be seen in response to
each release of news as we move into the
New Year. The current IG Index price is
68.33p-69.92p.
Transport group Stagecoach issued its
half year report yesterday showing a 44
per cent hike in pre-tax profits to £108.3m.
The group reported strong organic growth
across its portfolio including sector-leading
profit margin and organic passenger vol-
ume growth at UK Bus. The group has a
war chest for further acquisitions and is
ideally placed to benefit from the new
longer rail franchises, say analysts at
Galvan Research. Galvan believes the com-
bined growth story puts Stagecoach in
pole position as the best listed UK trans-
port play, and at 215p the shares are a
solid buy for a return to year highs of 226p
and beyond. Spreadex has a rolling spread
of 211.4p-212.8p.
Mining group Xstrata has been going
from strength to strength on the back of a
surging copper price. S&P Equity Research
analyst Johnson Imode has raised his 12-
month target price to 1,700p from 1,500p
to reflect higher commodity price esti-
mates and sector multiples. “The group
faces a number of challenges to complete
its growth programme but in the near term
we believe Xstrata is well placed to benefit
from growing supply constraints for its key
commodities,” he added. IG Index quotes
Xstrata at 1,450p-1,453p.
After decades of being mired in debt,
Groupe Eurotunnel is financially out of the
woods after a massively dilutive debt to
equity swap. Its grand plans for multiple
projects may be derailed by staff con-
straints, points out Alphavalue, adding that
competition has not disappeared, capacity
is still under-used, and insurers still have to
compensate the firm for the 2008 fire.
With all these headwinds, it might be
worth a sell. IG Index quotes €6.923-
€6.957. Jessica Mead
RBS SEMINAR ON PORTFOLIO BUILDING
Listed product provider RBS is hosting
another free seminar on Monday 13
December. This event will take stock of the
RBS Fantasy Portfolio Game and focus on
the best practices for building a successful
portfolio and how to get your investments
on the right track – ideal as we head into
2011. The event runs from 5.30pm to 7pm
and will be held at RBS’s headquarters on
Bishopsgate in the City of London. If you
would like to register for the event, please
visit http://ukmarkets.rbs.com/ or ring 0800
121 6286.
 City Focus
26
| Careers
Christmas networking tips
I
T’S party season: your best
chance in the whole year to
make new contacts. Here are
2 . LISTEN. You should always spend
more time listening than talking. “Be
five steps to better networking. generous, invite other people to join
in – the more you give the more you
get.” Remember some people don’t
1relaxed
. SMILE. “It makes you both more
and positive,” says network-
want to talk about themselves because
they think their job is boring. “But if
ing expert Daphne Thissen. Also, you allow them to talk about what
keep eye contact when talking, and they know, everybody is interesting.
DAPHNE THISSEN respond to what people are saying. “It
makes people feel appreciated” and
And you never know what you will
hear.” But if something is not going
NETWORKING GURU
more likely to connect with you. well, don’t force it, just move on.
Make the most of party season
3. GO FOR QUALITY NOT QUANTITY.
“I never leave an event with 20 busi-
ness cards, it’s more like three or
four,” says Thissen. You don’t have to
madly work the room, just try to
make a connection with a few people.
Those are more valuable and you are
more likely to strike up a good work-
ing relationship if you can remember
somebody’s face. Networking is “all
about the long game” and the key is
making good contacts that mean
something, not card-collecting.
4
At KPMG we don’t let . EMAIL. If you didn’t meet some-
body you wanted to talk to at an
event, then email them and say: “We
were at the same party but we didn’t
good Contractors go. meet up, can we go out for a coffee?”
KPMG Associates Team
UK wide Remediation opportunities Give your career a
new year’s boost
Resolve to learn
new skills, writes
Jeremy Hazlehurst
W
ITH 2011 on the horizon,
now is an excellent time
to start thinking about
adding a new string to
your bow. If you are in search of a
Long-term relationships are always the most fruitful. So when we find the right New Year’s Resolution, you could do
Contractors, we continue to share industry insights with them after remediation projects worse than choose to study for a pro-
fessional qualification. Luckily,
are completed, keep in close touch and, where possible, offer them further work with us. there are options this January.
Quite simply, you’re a valuable resource for clients, and therefore for us. We value you BPP is launching its MBA next
month from its offices right in the
as an extension of our client facing teams. Not least because of the quality of work you shadow of the Gherkin – it would be
will produce on projects in Risk & Compliance, using your judgement and experience to hard to find a more inspiring site for
bring each one to a satisfactory conclusion. those who see their future in the
City. The cost is £16,500.
Your impressive track record in remediation will be key. Additionally, you’ll be adept at BPP also has four postgraduate
any of the following: AML, sanctions screening, process mapping, IT, data analytics, programmes starting in January –
unusual, as most start in November,
record and data validation, complaints or claims handling, financial advice, financial but handy for those turning over a
promotions, products knowledge, past business reviews, QA, project management, new leaf. Those who take the MSc in
or training and competency. You’ll certainly have been involved in delivering successful Finance, Management or Marketing
remediation projects. will also be gifted £2,000 of free pro-
fessional education in areas such as
We’re looking for the very best Contractors to join our Associates team and are initially accounting and finance, tax, City
banking and financial services,
holding assessment centres in London, Manchester and Leeds. If you’d like the insolvency, leadership or personal
opportunity to become KPMG accredited, email your contact details and an up-to-date development. To find out more,
CV to ukfmkrassoci@kpmg.co.uk Alternatively, call 020 7694 8940, leave a number, and email admissions@bpp.com or call
a member of the Associates team will call you back. 08450775566. The MSc in Finance
costs £12,950, the others £9,500.
Whatever happens in the City
© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of
there will always be a call for
independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. The KPMG name, logo and accountants, or at least those with a
“cutting through complexity” are registered trademarks or trademarks of KPMG International. grasp of accountancy. While the
course for the ACA qualification,
one of the gold-standard accountan-
CITYA.M. 9 DECEMBER 2010
Picture: GETTY
If you are really keen to meet some-
body, then you can email before an
event, saying you hope to meet up.
Don’t worry about badgering people,
if it is a “meaningful” email then they
shouldn’t mind being contacted.
5are. REMEMBER: THIS IS WORK. If you
really getting on with somebody,
don’t be tempted just to talk to them
all night. These are the contacts that
are easy to re-establish, so you should
feel able to move on. On the other
hand if you are getting monopolised
then just say that you really have to
speak to somebody else – that’s not
rude, it’s just professional.
Daphne Thissen is the author of Notes to
Self, a guide to networking. For a copy, visit
www.thepartnershipbuilder.com
cy qualifications, starts in January,
you already have to have a training
contract before they’ll accept you.
However, you can take one of their
“entry-level” qualifications, for
example the Certificate in Finance
Accounting and Business (CFAB) and
the Certificate in Insolvency. “Both
these are aimed at individuals in
business and finance but who are
not necessarily working in the
accountancy profession,” says
provider ICAEW. They also offer an
International Finance Regulatory
Standards (IFRS) qualification that
might interest City folk. These are
far cheaper, with the CFAB, for
example, costing around £500. See
www.icaew.com.
At London Business School several
courses start in January and
February with space, including
Essentials of Leadership, 13-18
February with a cost of £6,450; the
Corporate Finance Valuation
Programmes, an evening class start-
ing on 12 January and running until
March with a cost of £5,950; and
Fixed Income Markets and Bond
Portfolio Management, for £4,450
and kicking off on 11 January. See
www.london.edu.
If you are a little further on in
your career, Cass says that it still has
space on its Executive MBA pro-
gramme that this year starts on 1
March. There is no deadline, and
you can apply up to a couple of days
before. Although candidates are
asked to apply before Christmas “an
application in January should be
okay.” The cost is £42,000. See:
www.cass.city.ac.uk/mba/emba. Go
learn new tricks.
Lifestyle GREAT 27
GADGET
GIFTS
SEE PAGE 34

s for LACOSTE

Gift ds
PEANUTS
T-SHIRT, £85

ki TRON ZERO GRAVITY

An exclusive Lacoste-
Peanuts collaboration at
Selfridges to celebrate
LIGHT-CYCLE, £34 Snoopy, Charlie Brown and
co’s 60th anniversary. THE LITTLE PINK
The remote controlled Light Cycle can defy www.selfridges.co.uk HOUSE, £100
gravity by climbing walls – just like in the
film. www.disneystore.co.uk One of Hamley’s classics, this beautifully-painted
DISNEY CARS dolls’ house comes complete with furniture and
LIGHTNING a doll family. Girls (and the odd discerning boy)
MCQUEEN 12- will love it.
INCH BIKE, www.hamleys.com
£99.99
Let your child be their very
own Lightning McQueen on
this bike modelled on the MATCHBOX
popular cars film.
www.toysrus.co.uk

istmas STINKY THE

GARBAGE TRUCK,

r
Ch t guide
£74.95
The latest addition to the range
of Hard Working Heroes from

gif
Matchbox, kids will love this
interactive robot truck who can
talk and tell jokes, eat and sing
songs. www.harrods.com

M&S SPIDER-MAN
OUTFIT, £15
Fans of Marvel can dress like
their favourite superhero in this
well-priced outfit.
www.marksandspencer.com
BUZZ
LIGHTYEAR, DAVE THE FUNKY
£49.99 MONKEY, £24.99
The toy that goes to DELUXE PRINCESS PACK, £75
infinity and beyond. Robotic monkey designed to sit on your shoulder
All good retailers For the little girl who can’t decide which of Disney’s princesses are and interact with your friends and passers by.
her favourite – she can own them all. www.disneystore.co.uk Adorable. www.davethefunkymonkey.co.uk

Because she cooks dinner for ten on Christmas day

Because she buys and wraps all the Christmas presents
Just because... she deserves some time for herself.

Save up to 20% off

Sanctuary Spa Gift Vouchers Sanctuary Spa Gift Vouchers*
Order now on 0844 875 8460 or visit
www.thesanctuary.co.uk *
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28 Lifestyle | Gifts
Gifts
for
him
LEICA X1 BLACK CAMERA, £1,395
The German company’s cameras
are the essence of retro-chic,
though they’re some of the finest
digital kit around.
www.leica-camera.com
DENON CEOL MUSIC
SYSTEM, £600
Who said hi-fi systems have to be black or
chrome? Denon’s latest creation shows that white
is where it’s at. www.denon.com
LYNN CROOK, SELFRIDGES’ BUYING MANAGER FOR CHILDRENSWEAR AND TOYS, ON HOW TO SHOP
Should you blitz the shops at once or
Q. pace yourself?
A blitz could mean one big manic, fun-
A. filled day with plenty of treats to
break it up and make it a great day
out. The very organised among you might
want to pace yourself, though.
What are your top tips for not get-
Q. ting overwhelmed?
A.
Listen and lists: most friends and fami-
ly make very subtle hints of what they
want. Lists impose some much-needed
order on what could be a bit of a wild dash.
Who should you shop for first: kids?
Q. Parents? Loved ones?
No preference there. My only advice is
A. that if the product has a lead time or
is the “hot” item for the year, grab it
first. Also think about whether you’ll need to
sneak big items in. Do you have a good hiding
place – especially from kids?
Q.
Are there any alternatives to brav-
ing the hordes on Oxford Street?
Don’t forget to look locally – a lot of
A. residential areas in London have their
own special character and some very
good little shops indeed. The other alternative,
of course, is to shop online. You can browse
Selfridges online 24/7, which I love.
What are your favourite mid-shop
Q. breaks?
I love Starbucks: simple but classic
A. and a great pick-me-up, particularly if
the queue moves quickly. A hot choco-
late mid-shop is the ideal break. I also like
Molton Brown to browse and try all the lovely
samples.
CITYA.M. 9 DECEMBER 2010
HUNTSMAN
REVERSIBLE SCARF, £215
Silk on one side, classic Prince of Wales
check on the other, from one of Savile Row’s
most famous names. www.h-huntsman.com
BILLIONAIRE
TYCOON, £34.99
Board game in which you aim to turn a
£100,000 loan into £1bn. Crisis, what
crisis? Available at Harrods.
www.billionairetycoon.co.uk
How important is presentation –
Q. should everything be wrapped?
Presentation is key, from handmade
A. gift-wrap to beautiful gift boxes.
After all, we all love the discovery of
what's hidden beneath, and above all, it
shows you care. You can have almost as fun
with wrapping and presentation as you can
with what’s inside, I say.
Any secrets for busting the central
Q. London crowds?
Many shops in central London
A. (including Selfridges) extend their
hours for Christmas shopping. The
later you go, the thinner the crowds.
Obviously the ideal is to skip weekends, but
most of us don’t have that luxury. Don’t for-
get about lunchbreaks: try taking yours a bit
earlier or later than normal to avoid the
rush.
CITYA.M. 9 DECEMBER 2010 Gifts | Lifestyle 29

VITA AUDIO RADIO, £159.99 ZILLI WALLET, £1,370

Bound in leather, this is the smartest The French company’s Bond Street store is an emporium
DAB radio around, and sounds superb of Euro-cool luxury, as summed up by this beautiful
too. www.vitaaudio.com bill-fold, alligator-skin wallet. www.zilli.fr

WILLIAM & SON

CUFFLINKS, £3,100
Precious and stylish log cufflinks made with
18ct gold and black onyx.
www.williamandson.com

BREMONT B-1 MARINE CLOCK,

FROM £40,000
English company Bremont branches out from making
luxurious watches with this truly spectacular, handmade clock
for the smartest superyachts around. www.bremont.com

BELL & ROSS THE OFFICIAL FERRARI OPUS

BR01-92
COMPASS
WATCH, £3,400
An ingenious, super-cool watch
using rotating discs instead of
hands. Resembles a military
compass. www.bellross.com
BOOK, FROM £2,000
Half a metre square, 852
pages long and with its own
stand designed by Candy &
Candy, this is the ultimate
coffee table book for car
lovers, and can come
personally signed by various
Ferrari legends.
www.ferrariopus.com

SIMON CARTER
TWEED GLOVES, £85
Suave leather, tweed and
cashmere gloves from the men’s
accessories specialist with a
new shop in the City.
www.simoncarter.net

TANNER KROLLE ENIGMA

BRIEF CASE, £950 A satchel-style case with a lock
based on a traditional safe lock,
made by London’s most exclusive
producer of bespoke leather
luggage. www.tannerkrolle.com

MONTBLANC
JOHN LENNON
PEN, £585
The German penmaker has
released this limited edition
writing instrument – complete
with guitar fret-board down the
cap – to commemorate
Lennon’s 70th birthday.
www.montblanc.comtal kit around.

CHRISTOPHER WARD C90 BECKETT

WATCH, £699
British watch brand Christopher Ward takes things to the next
stage with this Silverstone-inspired beauty, which includes a
groovy power reserve display. www.christopherward.co.uk
30 Lifestyle | Gifts
s experiences
ior
Inter
31
61
91
EYE ON: ONLINE SHOPS
I
F HITTING the shops doesn’t appeal, you can find a
world of exciting goodies online. Portero.com is a
luxury auction site for accessories where all items are
certified and quality checked – it’s like Ebay with insur-
ance, so you can pick up a Birkin in mint condition. For less
designer and more organic, etsy.com has lovely bespoke
handmade loveliness – more of a marketplace than a shop,
where you can trade everything from glasses to scarves to
soap. Allthingsoriginal.com is also a great site full
of interesting stuff, from cassette tape-themed iPod holders
to delicious knitwear. Over at celtic-
1
41
71
10
1 the Norwegian commandos who in
sheepskin.co.uk is a great alternative to Ugg-style
boots and gifts for everyone. Beauty addicts will love any-
thing from cultbeauty.co.uk – a great “insider’s
guide” to the best beauty products, from nails and hair to
eyebrows and tools – the choice is huge. And if it’s afford-
able but trendy jewellery you want, try
reddirect.co.uk. Heading to the hearth and home,
skitsch.com has wonderful European stylish bits for
interiors, while drinkstuff.com should answer all your
zaniest home bar needs (great for fun gifts). And finally, our
source hesitated to divulge this because the smoked salmon
is so good, but her top secret tip for delicious smoked
salmon is dunkeldsmokedsalmon.com.
21
51
81
WHAT, WHERE AND HOW MUCH
1. Robin and snowmen baubles, £2,
www.habitat.co.uk
2.Christmas botanicals cranberry and spice
candles, Heal’s, £20 for three,
www.heals.co.uk
3. Ruby red velvet upholstered sofa,
Talisman, £5,400, www.talismanlondon.com
4. Fire kit lamp, Skitsch, €120,
www.skitsch.com
5. Bibendum easy chair, Eileen Gray, £2,160
(felt fabric); £2,845 (leather),
www.aram.co.uk
6. Eichholtz Brass Bond Street clock, £190,
www.occa-home.co.uk
7. Harrods exclusive velour stocking, £10.95,
www.harrods.com
8. Soda stone lamp, Louise Bradley, £1,495,
www.louisebradley.co.uk
9. Piers Gough rug, hand-made in Uttar
Pradesh, India. £2,820, www.aram.co.uk
10. Number two of Marcel Wanders’ limited-
edition, deer-shaped crystal candelabras for
Baccarat. £8,160, www.harrods.com
CITYA.M. 9 DECEMBER 2010
Four great
for the true
aficionado
Indulgence: the right spirit for Christmas.
l
You can’t beat a day of pampering for
unwinding after the Christmas rush.
Any chap looking to really indulge a
lady should look to the spa at the plush
Sofitel St James’s Hotel, whose ultimate
package includes a crystal necklace from
renowned French glassware company
Baccarat. For pampering, you get the
Zenith Signature treatment, a rejuvenat-
ing treatment inspired by Baccarat crys-
tal, using rock crystal to soothe and relax.
£2,900 www.sofitel.com.
2
For chaps who enjoy a bit of groom-
ing and mollycoddling, the one-day
Refined Package at the Refinery
male spa salon (in Mayfair and in
Harrods) involves around six hours of
treatments, which can be tailored to the
customer’s preferences. For instance, you
might go for an ocean mud treatment
(massage using a marine mudpack to
warm the muscles) combined with a pedi-
cure, a facial and finished off with a wet
shave. Vouchers for this and other treat-
ment packages can be bought from the
salons or the website. £350, www.the-refin-
ery.com.
3
Is this the best boys own adventure
package ever devised? The story of
1943 parachuted into occupied Norway
and survived a winter on an ice plateau
before blowing up the factory where the
Nazis were developing their atomic bomb
is one of the greatest tales of wartime
heroism, immortalised in the Heroes of
Telemark film with Richard Harris and
Kirk Douglas. Recreating the mission,
this four-day package involves parachute
and weapons training with authentic
equipment, making the jump onto the
Hardanger mountain range plateau, stay-
ing in the hut used by the original sabo-
teurs before infiltrating enemy lines and
making the attack. £1,150 + VAT, www.quin-
tessentiallyescapes.com.
4
For the ultimate adventurer, luxury
menswear brand Alfred Dunhill has
teamed up with travel company
Black Tomato to offer a series of out-of-
this-world experiences based on a jour-
ney made 80 years ago by Dunhill
executive Clement Court, as he scoured
the world for beautiful objects. Head to
Russia to go backstage at the Bolshoi
before doing “catapult training” in a
mile-high fighter jet; learn Bushido from
Samurai masters in Japan or get a private
tour of the Louvre in Paris. Our pick,
though, is a week-long journey across
Mongolia, travelling deep into the Altai
Mountains, meeting local shamen and
learning eagle hunting. That’s £3,450 per
person. To spend a month doing the
entire journey over all four destinations,
its £27,750. www.blacktomato.co.uk
32 Lifestyle | Gifts CITYA.M. 9 DECEMBER 2010

1
for
Gifts r
he

Get the
VAT-back
with Sony
91
Give them something they’ll love.
FREE
FREE 5year
guarantee
5year
guarantee
on TV

on TV

Model: KDL-40EX503
Sony 40” Full HD 1080p BRAVIA Wi-Fi
Ready LCD TV
Model: KDL-40NX703
40”, Full HD 1080, LCD TV with Edge LED,
Monolithic Design & built-in Wi-Fi access
11
1
You pay £699.99 Claim £104.26 VAT back on TV
Monolithic TV Stand pictured - SU-40NX1 is optional for £ 199.99
You pay £899.99 Claim £134.04 VAT back on TV 10
1
£ £
NET Price 595.73 NET Price 765.95
Save
£ .99
12
1
£50 Was £179.99 Now only 129
All-new Blu-ray Disc™ player with online video and back-lit remote - Model BDP-S373

Reader Pocket Edition™, ultra slim and Very high quality images with
lightweight with 5” glare-free touch high zoom and Intelligent Sweep
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You pay £159.99 Claim £23.82 VAT back You pay £249.99 Claim £37.23 VAT back
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NET Price 136.17 NET Price 212.76 13
1
Full HD Flash Memory camcorder XDR-DS12iP iPod/iPhone speaker dock
Model: HDR-CX115E with built in DAB Radio
Model: XDR-DS12ip
WHAT, WHERE AND HOW MUCH
Save was £99.99
You pay £299.99 Claim £44.68 VAT back 1. Arty bracelet (understatement of the century), Yves Saint Laurent, £435,
£20 £
NET Price
£
255.31 Now 79.99 www.selfridges.co.uk
2. Chrysler bag, Carolina Herrera, £385, CH Carolina Herrera, Mount Street, Mayfair
3. Home rose cushion, Missoni, £185, www.selfridges.co.uk
4. Fur hood hat, £240, Rous Iland, www.rousiland.com
LONDON 5. Swarovski 1.2L amphora encrusted Bond No 9 bottle with 16,500 hand applied
22 Tottenham Court Road, W1T 1BP crystals, and hand-filled with Harrods Rose fragrance, £3,000, exclusively at
Harrods, www.harrods.com
Tel: 0845 634 0350
Instore, online, Collection or delivery.
http://tottenhamcourtrd.sony.co.uk
6. Multiwear necklace, Bex Rox, £295, www.rousiland.com
7. Clive Christian No.1 Perfume “Imperial Majesty” limited edition, £115,000 (there
are diamonds involved and the perfume is the world’s most expensive even without
*Cashback available only on selected Sony products purchased before 24.12.2010 whilsts stocks last. diamonds). At Roja Dove Haute Parfumerie in Harrods, tel: 0207 893 9797
Full price is payable in-store and Sony will refund 14.89% of the retail price you have paid which is 8. Crocodile belt, Elliot Rhodes, buckle £59.50, belt £85, www.elliotrhodes.com
equivalent to the VAT by Cashback. Please note the price that you have paid in the UK includes VAT 9. Ormonde Jayne 24kt gold dust in a handmade satin puff trimmed with marabou
at the standard 17.5% rate; this is added to the ‘net’ or ‘ex-VAT’ price of your Sony product to give the retail feathers, perfumed with the Ormonde Jayne Ta’if rose oil, £400, www.harrods.com
price you paid. Of all overall retail price, VAT constitutes 14.89% not 17.5%. Cashback must be claimed 10. 212 VIP, Carolina Herrera. Her new, edgier fragrance for party-hopping women.
before 31.01.2011. Cashback via Redemption only. ’Sony’,’VAIO’, ‘Alpha’, ‘Walkman’, ‘BRAVIA’, and their £29.99 for 100ml, www.superdrug.com and department stores
logos are registered trademarks of Sony Corporation. All prices correct at time of going to press. E & O.E. 11. Customised Fragrance Combining Collection, Jo Malone, £230, www.jomalone.com
All pictures for illustration purpose only. iPod/iPhone not included Operated by: Shasonic Centres Ltd. 12. Master compressor diving GMT Lady Ceramique diving watch, Jaeger-LeCoultre,
£7,650, www.williamandson.com
13. Bridget’s Back studded gem encrusted shoes, Christian Louboutin, £2,325,
www.selfridges.co.uk
CITYA.M. 9 DECEMBER 2010 Gifts | Lifestyle 33

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21

31 41

61

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 Lifestyle
34
Gunplay and grit: Red Dead Redemption
The games
that ruled the
roost in 2010
RED DEAD REDEMPTION (PS3, X360) £29.99
What was merely potential in gritty Wild
West game Red Dead Revolver became
reality in this blistering follow up, in
which former outlaw John Marston tracks
down his former compadres. The technical
brilliance of the gunplay is more than
matched by the beautiful scenery and
oppressively tough, dusty atmosphere.
STARCRAFT II: WINGS OF LIBERTY
(PC/MAC) £34.99
A mere 12 years after the original leg-
endary strategy game was released, its
sequel pretty much lived up to the hype. In
a distant part of the Milky Way, three differ-
ent civilizations battle it out, with your
real-time strategic skills put to the test in a
series of missions as rebel leader Jim
Raynor. The online play and multiplayer
functions are nothing short of sensational.
DEAD RISING 2 (X360, PS3) £34.99
Wiping out zombies doesn’t get much
more outlandishly enjoyable than in this
slick thrasher set in Vegas-like Fortune
City. As hero Chuck Greene you can use
duct tape to combine objects and thereby
create awesome super-weapons – the zom-
bie-crushing wheelchair/lawnmower
combo and canoe paddle with chainsaws
at each end are particularly entertaining.
ROCK BAND 3 (X360, PS3, WII, DS), £37.69
Yet more musical amusement in a game
that arguably gives you the closest experi-
ence yet to playing real instruments.
There are now over 2,000 songs to work
your way through, while vocal harmonies
and a keyboard you can strap on like a gui-
tar, Jean Michelle Jarre-style, are among
the innovations.
CALL OF DUTY: BLACK OPS (PC, PS3, X360,
WII, DS), £42.69
The quest to replicate the brutal totality of
modern combat has reached its most
immersive level yet in the seventh Call of
Duty outing, set during the Cold War as
you carry out missions in Russia, Vietnam
and Cuba. All prices from www.play.com
Timothy Barber
OUT OF OFFICE
TIMOTHY BARBER
RUDOLPH PIE FOR CHRISTMAS SHOPPERS
Covent Garden’s confusingly-named
Battersea Pie Station – a paradise for those
who like their lunches hot, meaty pastry-
topped – is getting in the festive spirit with
a very tasty reindeer pie – called The
Rudolph, natch – that’s available through-
out this month. If those reindeer aren’t
actually going to help deliver presents, they
| Technology
Great gadget gifts
SENNHEISER
PXC HEADPHONES 450
The brilliance of these cans is not just the sound
quality (though as you’d expect from
Sennheiser, that’s excellent) but the button you
flick to cut out exterior ambient noise to an uncanny degree.
£349, www.sennheiser.co.uk
KINECT FOR XBOX 360
The one thing that could give the iPad a serious run as the game-
changing gadget of 2010, the Kinect is a big leap forward for gaming,
removing the need for an actual controller. Instead it reads your actu-
al motions and gestures – with the added bonus for onlookers that
you look like a complete plonker while using it.
£129.95, www.johnlewis.com
SONY NEX-5
CAMERA
It’s been the year of the hybrid camera – where
SLR functionality and (almost) quality meets
handy compact proportions – and Sony’s smart,
light NEX is one of the best, with an inter-
changeable lens system and first-rate, 14.2
megapixel image quality. £550, www.sony.co.uk
may as well help those shopping for
them – best not to let the kids know.
£6 from Battersea Pie Station (or £5 take-
away), Lower Ground Floor, 28 The Market,
WC2E 8RA. www.batterseapiestation.co.uk
CHELSEA FC’S CHRISTMAS TREATS
Here’s a pretty great present for a Blues fan.
Chelsea FC’s Ultimate Gift package consists
AMAZON
KINDLE 3
GRAPHITE
There are other e-book
readers out there, but
Amazon’s product
remains top of the class at
the moment. As well as a
cool new look in age-of-
austerity-friendly grey, the
Kindle 3 has a superb elec-
tric ink display, 3G and Wi-
Fi connectivity and
improved battery life.
£149, www.amazon.co.uk
TOSHIBA LIBRETTO W100
Is it a laptop? Is it a tablet? Well, it’s both, sort of. Running
Windows 7, this ingenious little device has two 7-inch multi-
touch screens and a very snappy design.
£899, www.amazon.co.uk
SONY VW90 3D PROJECTOR
Having a 3D TV is one thing, but any audiovisual expert will tell you that the
best cinematic quallity comes from projectors, not telly. Enter this projector,
which delivers three-dimensional images for both Hollywood blockbusters
and TV 3D channels. £5,400, www.sony.co.uk
of a hostpitality ticket for any of the
club’s Christmas and New Year games,
plus souvenir goodies that can be
wrapped and placed under the tree.
And those aren’t just any tickets – they
include pre-match dining, a festive
drink on arrival, a complimentary bar,
and an exclusive Chelsea scarf.
£125+VAT from www.chelseafc.com/tours
CITYA.M. 9 DECEMBER 2010
NICK
BOOTH
TECH TALK
Tablets are
this year’s
turn-on for
gadget lovers
T
he must-have present this year is a
tablet. If you can’t afford an iPad an
Android is arguably much better value.
Are tablets sexy? I suppose they are if
you can watch certain movies. But which blue
tablets are the best?
The Binatone HomeSurf 8 Touch Tablet is
an eight incher. The similarities to a horse don’t
end there. It goes like the clappers and it’s got
staying power too. It’ll stay up for four hours,
playing back videos with gusto, thanks to its
rechargeable Lithium-ion batteries. This baby
will do everything to please you – it even auto-
rotates to provide exceptional viewing pleas-
ure. Phwoar! It’s got stereo speakers and if you
want privacy you can take the jack-off option.
With 2GB of built-in storage, you can store
250 images or 500 love songs. Also comes in 7
inches. The money shot? £179.99, available
from www.argos.co.uk.
For the same price you
can
always pick up an
Android 2.1, and in what better form
than the Disgo Tablet 6000 (above). I found
it easy to use it with my Wi-Fi, its Flash made
it easy to search YouTube, FaceBook, and
Twitter. You can even play it via an HD TV. It’s
£129.99 at Amazon.co.uk.
ViewSonic’s new 10 incher (Viewpad 10,
£418 at Amazon.co.uk) would satisfy anyone,
whether they’re an Android lover or they have
a thing for Windows. It’s got a whopping
16GB in storage and a slot that can take 32GB.
It’s got a gigabyte of memory and enough pro-
cessing power to support a built in web-cam
(Leslie Grantham take note). As you’d expect
from a computer costing £485. Viewpad also
comes as a 7 incher.
If you want a cheaper, Flash enabled tablet
the Advent Vega is £249.99 at Dixons.co.uk.
It’s better in bed than some notebooks (with a
Gigahertz of processing power) and claims to
last up to ten hours.
Having said that, laptop maker Dell caters
for “on-the-go” entertainment (Dell’s phrase)
with a Streak (£399, Dell.com, below) which is
5 inches of gorilla glass touchscreen giving you
access to 100,000
apps. Sometimes, it’s
not the size that
matters, but
what you do
with it. Of
course, if
you’re
watching films with one hand holding
your tablet, the Samsung Galaxy Tab (£449
at Tesco.com) has the hardware to give you
some of the best playback.
Nick Booth is the editor of Mobileb2b.co.uk
CITYA.M. 9 DECEMBER 2010 WORDS BY
ZOE STRIMPEL
Lifestyle | Restaurant 35

Clapham is
calling with
this pub jewel
Locals are lucky; others may find it’s
worth the trek for the Bobbin’s good food
I kicked off with razor clams with chori-
The Bobbin zo, thinking they’d be small as they so
often are. But instead of being an overly
1-3 Lillieshall Road SW4 0LN delicate dish, the clams were great long,
Tel: 020 7738 8953, thebobbinclapham.com rubbery, slightly horrible specimens (I
recoiled; dyed-in-the-wool clam lovers
FOOD hhhii might not), but doused in a wonderfully
SERVICE hhhhi aromatic sauce with lovely bits of chorizo
ATMOSPHERE hhhii floating about. Hearty – not least for being
razor clams.
Cost per person without wine: £25 My companion had the soup of the day,
which was a perfectly spiced, thick and
fibrous pumpkin broth, peppery and

I
F you live anywhere near Clapham
Common, the Bobbin should be your
local by virtue of being very good,
rather than proximity. I don’t live
anywhere near it, but the trip down south
to eat there was worth it. Sure, the people-
watching on the southern leg of the
Northern line is almost an end in itself,
but the romantic, candle-lit pub dining
room, cosy wooden bar and really quite
delicious food clinched the deal.
I say quite delicious food. That makes it
sounds like it could be anywhere – these
days, London has come so far that you can
count on quite delicious food (or at least,
very good food) at any number of pubs
across the city.
This was a cut above. The menu is small
and well-crafted, with the usual suspects
(potted this and terrine of that; plenty of
“catch-of-the-day” style items), but with
enough surprises, too. As for why I visited
at all as opposed to any number of other
gastropubs: the Bobbin stopped being the
Tim Bobbin last summer, and was suppos-
edly relaunched in a new incarnation.
warming.
We moved on – via lots of slices of thick
bread slathered in good butter – to mains
that were also a perfect ten. Well, almost
perfect – perhaps my home-made pump-
kin ravioli was too rich and a touch gluey.
I couldn’t finish it, which is odd for me,
and my Italian companion commended it
but said it was not quite what his mama
would have made. Still, the home-made-
ness of it came through in a wholesome
heft and luxuriant taste. It was a (quite)
delicious dish.
Mario’s chicken and leek pie was a joy:
bursting with vegetal flavours and thick-
ened with shards of (presumably) once-
happy chicken, topped by a good drift of
buttery pastry. It was the perfect pub dish
(yes, perfect).
We had contemplated omitting dessert
entirely, somewhat knocked out by the
robust and generous preceding dishes. But
in the end we fell for a roast quince with
apply ice cream and we were glad we did.
If you’re into good ale and sharply-cho-
sen wines of the Old and New World, you

Locals claim it hasn’t changed much,
which – judging from my experience
there – is a good thing.
TASTING NOTES: BILTONG AND WINE
ZOE STRIMPEL
should be able to find a drink experience
as rewarding as the food one at the
Bobbin. A Clapham jewel.
Roll up for a
The home-style, brought up to date with ostrich leather sofas
welcoming interior of and a mirrored wall, giving it a contemporary
the Bobbin. look with a seductive atmosphere. Just down
the road on Seymour Place there’s new wine bar
host of new Vinoteca (www.vinoteca.co.uk), whose older sib-
ling has been so successful in Farringdon. Doing
the simple things well, it offers one of the best-

hot openings
value ways to sample fantastic wines and even
lets you buy them to take away at retail prices.

W
E don’t say we ‘want’ biltong, we say
we ‘need’ biltong,” says Neeleen
Strauss, co-owner and sommelier of
High Timber, the steak and wine
restaurant facing Tate Modern. The “we” in this
context is South Africans, and biltong, if you
don’t know already, is the dried beef the coun-
try prides itself on and which can be found
done not very well and with lots of additives in
plastic packets at newsagents here.
Strauss recalls how as a baby she was
given biltong instead of a dummy to chew on.
I may not have been raised on it, but, like
we tried beef, kudu (a South African antelope-
like creature) and ostrich biltong, along with
dried beef and springbok sausage (droe wors).
Beef came in several forms: dry, wet (slight-
ly moister than bone-dry), Bushman’s delight
(a different blend of spices) and chilli. All were
great: nothing artificial, full of meaty heft and
savour, and – unlike Strauss’s rejects – “ele-
gant”. Chilli was simply to die for: it ticked
every box the savoury-seeker could ever
desire, the fire emerging subtly more with
every bite. We washed all this down with two
wines: Jordan Cobblers Hill (Merlot and
The Portman Village area (Seymour Place,
Quebec Street and thereabouts) is buzzing at
the moment with the just-opened Grazing Goat
public house and hotel from the excellent
Tim Badham Cubitt House Group. The new Inamo St James
(www.inamo-stjames.com) has launched last
Going week with its high tech wizardry imported
from Soho. A destination bar in its own right
attached to the interactive restaurant, they are
Out taking drink seriously with a handpicked, tal-
ented bar team. The interior focuses on distinc-
tive natural elements and has its own Japanese
garden, with impressive technology through-

many people, I do like a good salty beef snack.
Chewing dry-cured animal is one of the
most satisfying things to do on earth.
But until now, most of my exposure
to biltong has been the stuff in crum-
my, chemical-loaded packs.
At High Timber, though, I had a chance
to have the very best and try it matched
with good, gutsy South African red wine –
its natural bedfellow. Originating during the
Great Trek of the 1830s and 1840s, when
the mainly Dutch settlers moved north-east
across modern-day South Africa away from
British control, biltong was the result of the
need to preserve meat on the move.
Shepherded by Strauss – who didn’t find a
satisfactory UK purveyor of biltong for six
months (EU regulations prevent its import) –
Cabernet) and Southern Wright Pinotage,
both red, of course, and both South African.
The Cobblers Hill was big and aromatic,
matching the beef perfectly, while the
Pinotage packed an even bigger punch and
proved an uncannily good bedmate for the
chilli beef and game.
The game was the kudu, ostrich and spring-
bok: all with a more minerally, tough-guy
flavour and texture. Whether you prefer beef
(like me) or the game, be sure you take your
biltong with red wine: a recent study has
showed that its tannins enhance red meat
flavours. It certainly seemed to work well.
Biltong tastings on request. Full tasting is £15
per person, one variety is £6 per person. High
Timber, 8 High Timber St, EC4V 3PA, tel:
020 7248 1777.
T
HERE have been a number of bar openings
dotted around the capital in recent weeks.
The iconic Oxo Tower (www.harveyni-
chols.com/restaurants/oxo-tower-london)
has seen the launch of its new bar with stunning
views across the Thames to St Pauls and
beyond. The impressive space mixes classic
cruise liner-esque lines with modern touches
provided by designer Shaun Clarkson, including
a sparkly light inset bar and mustard yellow fur-
niture. There’s also an intriguing cocktail list fea-
turing exotic rums and sours. Bar 92, tucked
away on Wigmore Street (not to be confused
with No 92 in Notting Hill), is also new and offers
the perfect hidden retreat after a hard day’s
Christmas shopping at Selfridges. This cool, inti-
mate basement bar has US influences, with
diner stools and 50s and 60s photography, but is
out.
If you’re looking for old-school interaction
with your drinks, you should try the new
Baranis (www.baranis.co.uk) in Chancery Lane,
which comes complete with a Petanque court
for a spot of boules with friends or new
acquaintances. It’s on a beautiful site in the
grand vaulted cellar of an old auction house
and has chic restaurant Cigalon upstairs too. In
another old auction house cellar on the other
side of town, Guy Pelly’s huge and impressive
Public nightclub (www.public.uk.com) finally
launched last week on the King’s Road.
Tim Badham is the founder of Innerplace,
London’s leading providers of VIP entertain-
ment, including film premieres, fashion shows,
launch parties and members club access.
www.innerplace.co.uk.
 36 Lifestyle | TV& Games CITYA.M. 9 DECEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm CHOICE The Apprentice:
The Final Five
9pm Have I Got News for You
9.30pm Live at the Apollo
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week: Skiing
Weatherview
12.30am Sign Zone: Addicted
to Games?: Panorama
1am Sign Zone: Countryfile 1.55am
Sign Zone: Antiques Roadshow
2.55am Sign Zone: The Young Ones
3.55am-6am BBC News
6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm Strictly Come Dancing 6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
– It Takes Two 7pm Emmerdale: Hour-long 7pm Channel 4 News 7pm Five News at 7
7pm Live Snooker: UK episode. Chas begins to feel 7.55pm 4thought.tv 7.30pm Highland Emergency:
Championship guilty about the wedding. 8pm Kirstie and Phil’s Perfect Five News Update
8pm CHOICE Nigella Kitchen 8pm Coronation Street Live Christmas 8pm Silver Pharaoh Mystery:
8.30pm Rick Stein’s Cornish 9pm Coronation Street: 50 9pm CHOICE The House That Revealed: Historians examine
Christmas Years, 50 Moments Made Me Psusennes I’s remains; Five
9pm At Home with the 10pm ITV News at Ten 10pm FILM My Best Friend’s News at 9
Georgians 10.30pm London News Wedding: Romantic comedy, 9pm FILM Men of Honor: Fact-
10pm Never Mind the 10.35pm Coronation Street with Julia Roberts. 1997. based drama, starring Cuba THE APPRENTICE: THE FINAL FIVE
Buzzcocks Live 12am Reaper Gooding Jr. 2000. BBC1, 8PM
10.30pm Newsnight: Weather 11.35pm The Late Debate 12.55am King of the Hill 11.35pm The World of Stupid Parents, friends, former bosses and
11.20pm The Apprentice: 12.05am Grimefighters 1.20am King of the Hill 1.45am Criminals Alan Sugar’s trusted aides discuss the
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Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
41 5 16 23 10 9 
21 10
11 10 7 
45
Place the numbers from 1 to 9 in each empty cell so that each    
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 17 14
28 39 11
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 3 8 5
 
above or to the left of it. 16 16
You can only use the digits 1-9 34 16 
 and you must not use the
12
17 24    
same digit twice in a block. 9 29
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9
     more than once in a row or
column, but it must be in a
14
6 14
8 15

19 6
   separate block.
14 15 13 4 
45
  20 7


   ACROSS DOWN
1 Fails to hit (6) 1 Reckless or malicious
    
   WORDWHEEL F L
6 Condone (6)
7 Pimple (4)
behaviour (8)
2 Part of the body
between the neck and
Using only the letters in the Wordwheel, you have 8 Egg white (7)
 ten minutes to find as many words as possible,
O E
the upper arm (8)
12 Cut in two (5) 3 Exchange for money (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 13 Abnormally fat (5) 4 Scour vigorously (5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R D 14 Sprint (3)
15 Fragrant resin used
5 Cricketing trophy (5)

SOLUTIONS KAKURO is at least one nine-letter word in the wheel.

G I as incense (5)
8 Eagle’s nest (5)
9 Fillip, incentive (5)
18 Express in
QUICK CROSSWORD 8 4 9 2 4 1 3 10 Formally arranged
9 2 6 1 3 9 8 SUDOKU         
speech (5)
gatherings (8)
6 4 8 , ' 2 8 , - $
4 1 7 3 6 8 7 9 19 Surgeon’s
2 6 $ 1 ' 0 %
6 9 8 9 7
        
pincers (7) 11 Gangrene (8)
' $ , 6 < ' 2 3 ( <         
2 8 3 5 6 5 3 1 2 5 9
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0 $ 7 ( 5 , $ / , 6 0 9 4 8 6 3 5 1 2 7 company of others (5)
        
, 2
& 2 0 0 (
$ )
1 7
1
$ 7 2 5
5 1
2
7 9 8
1 1
4
2 6
WORDWHEEL         
22 Courageous
men (6) 17 Star Trek’s original
, 3 2 % $         
4 8 6 9 7 3 7 1 The nine-letter word was Doctor (5)
7 ( $ & + 5 2 % , 1
3 5 4 8 1 8 2          23 Dissertation (6)
( 1 $ 9 , ' &
SCAPEGOAT         
20 Persistently annoying
6 : , 1 * ' ( $ 7 + 1 9 5 9 4 9 4
person (4)
 Sport
Broad blow opens the door
for Finn to impress further
▲
CRICKET
BY JAMES GOLDMAN
ENGLAND bowler Steven Finn is rel-
ishing the opportunity to take on
added responsibility in the absence
of Stuart Broad.
The 21-year-old Finn has bowled
with impressive control in, this, his
debut Ashes tour and is currently the
joint leading wicket-taker in the
series with Graeme Swann.
The Middlesex seamer has nine
Aussie scalps to his name and the
tour-ending abdominal injury suf-
fered by Broad will mean an
enhanced workload for Finn, who is
confident he can handle the burden.
He said: “I enjoy responsibility.
Stuart has been an outstanding
bowler for England in the last three
years so to lose someone like him is a
big loss, but it’s important we try
and fill his boots as best as we can.
“There’s still bits I can improve on,
very much so. To take wickets has
been nice and to get important wick-
ets has been nice as well and I’m glad
I am contributing to the team.
“I’m playing in the hardest fought
series I’ve ever played in. To play
against Bangladesh and Pakistan was
testing at times but against Australia
in their own back yard is testing all
the time.”
Broad’s untimely injury will force
England’s selection committee into
an uncharacteristically overdue first
tough decision of the tour.
Chris Tremlett (inset) appears to be
the front-runner having made life
uncomfortable for Australia A’s top
order last month.
His Test career has been curtailed
by injury, but a move to Surrey last
year coincided with his best ever
county figures, and at 6ft 7in, of the
men vying to replace Broad, he is best
equipped to extract extra bounce
from a fast Perth track.
Tim Bresnan is a handy first
change bowler and by performing
with distinction in Bangladesh earli-
er this year, he demonstrated an abil-
ity to bowl long spells in oppressive
conditions. He’s certainly the best
SPORT | IN BRIEF
Klitschko calls off Chisora fight
BOXING: Wladimir Klitschko has pulled
out of Saturday’s fight with Dereck
Chisora and opened negotiations for a
world heavyweight title clash with
David Haye. Klitschkos cited a back mus-
cle problem last night. Golden Boy Chief
Executive Richard Schaefer said:
“Wladimir’s people told us that the fight
this weekend is off and asked us to start
making the big one with David.”
Plymouth handed 63-day lifeline
FOOTBALL: Plymouth Argyle were yes-
terday given two months to clear their
tax bill by a High Court judge. The
League One club and a related property
company were facing winding-up peti-
tions for over £760,000 owed to HM
Revenue & Customs but have been
granted 63 days’ grace. The Home Park
club told the court they are in the
process of refinancing and have found
an investor willing to invest £500,000.
Finn, 21, has
taken nine Aussie
wickets in the
first two Ashes
Tests
batsman of the three men hoping to
step into Broad’s shoes, but with the
top six all in such good form, reinforc-
ing the tail is unlikely to be the selec-
tors’ main concern.
Of the three hopefuls, Ajmal
Shahzad would represent the bravest
selection. He’s the youngest of the
group, but is highly rated by the
Monty: Westwood will win the Masters
▲
GOLF
BY FRANK DALLERES
RYDER CUP captain Colin
Montgomerie is tipping world No1
Lee Westwood to end his long wait for
a first Major title and give the
European Tour an unprecedented
clean sweep at the Masters in April.
Montgomerie knows all about the
Englishman’s yearning to triumph at
one of the big four tournaments, hav-
ing himself famously missed out on a
Major despite being one of Europe’s
all-time greats.
Players from the European Tour
currently hold the other three Majors
and Montgomerie is convinced
Westwood will make it an historic
four out of four by finally scratching
his itch in next year’s first big event.
ALAN PARDEW IS SET TO BE A
VERY UNPOPULAR TOON BOSS
ONLY TWO PER CENT OF NEWCASTLE
FANS WANT HIM AT THE CLUB: P38
coaching staff
and has the key
ability to
reverse the old
ball. The triumvi-
rate will get the
chance to impress
against Victoria, starting
tomorrow. May the best man win.
“Next year hopefully we’ll have a
Masters winner, and then all four
Majors will be held by European Tour
members – the first time that’s ever
happened,” said the Scot (right).
“I think with Westwood’s success
in the Masters this year [he came sec-
ond], having led after three rounds
and being beaten by a brilliant Phil
Mickelson in the last round, that he
will win the first Major of the
year. From then on it’s any-
one’s shout.”
Montgomerie compared
Westwood’s near misses on the
biggest occasions with his own, as
well as the pressure on British tennis
No1 Andy Murray, who despite consis-
tent excellence is still without a
Grand Slam.
“It gets harder,” he added. “Andy
THE ALL-ROUNDER |
THE GOSSIP FROM DOWN UNDER
WARNE ORDERS A BEER
It would be understandable if leg-
endary leg-spinner Shane Warne
was ordering some alcoholic
refreshment in order to dull the
pain of Australia’s hammering in
Adelaide. But on this occasion,
Warne has been calling for the Test
selectors to take a gamble on West
Australian tweaker Michael Beer
for the third Test. The tall left-arm
spinner took a career-best 5-207 in
a tour match against England last
month at the WACA.
IS THE COMEBACK ON?
Speaking of Warne, the momentum
behind his potential comeback is
gathering pace. The 41-year-old
retired in 2007, but such has been
the toothless nature of this current
Aussie attack that the clamour for
him to make a one-off return con-
tinues to grow. Warne, himself,
added fuel to the fire yesterday and
refused to rule out a return. He
said: “There has been a bit written
about making a comeback. It is very
flattering to hear those words.”
AN OPPONENT FOR AUDLEY?
Audley Harrison claims he’s ready to
box on, and maybe the notoriously
punch-shy Olympic champion
should look no further than
67-year-old former Aussie
skipper Ian Chappell as
his next opponent.
Chappell and Ian
Botham, who haven’t
spoken for over 30
years, were report-
edly pulled apart
after exchanging
pleasantries in the
Adelaide Oval car
park this week. But like
Harrison, Chappell
claimed: “There were words
but I was never going to throw
a punch at anybody.”
Murray sees that right now. He’s
finding it hard to go one
more, as I did. Lee’s been
second or third on a
number of occa-
sions now,
but I feel
with the
added confi-
dence from
No1 status and
his fantastic end
to the season,
that would run
into a win in the
Masters.”
While Tiger Woods
showed signs of a long-
awaited recovery at the
37
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email sport@cityam.com
Chevron World Challenge last week-
end, Montgomerie believes the
European boom will prevent the
American from ever reasserting the
dominance of old.
“You’ll see him win Majors again,
and I’m still convinced he’ll get to
18 or 19, but I don’t think you’ll
see him as dominant, winning
two or three a year,” said
Montgomerie, speaking yesterday
at the launch of Golf Live 2011 at
City Golf.
“I think it’s the improvement in
European players as opposed to
anything with Tiger. I’d like to be
very, very positive here and say
it’s all down to the standard of
European players coming up
to his level and at this stage
overtaking him.”
 38 Sport
Wenger: We
have no need
to fear Barca
or Mourinho
Arsenal have a 50 per cent chance of facing one
of the Spanish giants in the last 16 of Europe’s
premier competition, but their boss isn’t worried
ARSENAL
PARTIZAN
▲
FOOTBALL
BY FRANK DALLERES, EMIRATES STADIUM
ARSENAL manager Arsene Wenger
shrugged off the possibility of a
Champions League rematch with
their conquerors of last season,
Barcelona, or Real Madrid, after
sneaking into the last 16 with a vic-
tory over Partizan Belgrade.
Forward Robin van Persie’s first
goal of the season, a sweet volley
from Theo Walcott and yet another
smart finish from Samir Nasri ush-
Pardew was criticised by Southampton
chairman Cortese Picture: PA
ered the Gunners into the knockout
round for the 11th year in a row.
3 Finishing second in Group H
means Arsenal will meet one of the
heavyweights next, with Barca, Real
1 Madrid and Bayern Munich three of
only four possible opponents.
Yet Wenger played it cool at the
prospect of meeting the Spanish
champions, who, led by four-goal
magician Lionel Messi, drubbed the
north Londoners so mercilessly in
last season’s quarter-finals.
“We have 50 per cent chance of
travelling to Spain, and 50 per cent
chance of travelling to Germany,”
said Wenger of next week’s draw. “If
you ask me where I’d like to go, I
don’t know. For you journalists,
maybe you might prefer to go to
Spain; for us, not necessarily. We
shouldn’t fear anyone.”
Pardew set for St James’ appointment
▲
FOOTBALL
BY FRANK DALLERES
NEWCASTLE are today expected to
anger fans by naming former West
Ham and Charlton boss Alan Pardew
as their new manager.
Pardew, sacked by Southampton in
August, is in line to succeed Chris
Hughton, who was shown the door at
St James’ Park on Monday.
Hughton was a popular figure with
the Magpies faithful, having steered
the club back into the top flight last
season and started the current cam-
paign solidly.
Pardew, meanwhile, garnered just
two per cent of the vote in a
Newcastle merry-go-round will unsettle players
Ashley’s shock decision to axe impressive Hughton is
beyond all rational explanation, says Trevor Steven
A FEW weeks ago it was Ray Wilkins,
now it’s Chris Hughton. Another club
dispensing with the services of an
important part of their success. I just
can’t understand it.
More baffling still is the idea of
V a n
Persie, who
opened the
scoring from
the penalty spot on the
half hour, was more bullish, posi-
tively inviting a clash with the
Catalans or Real Madrid, managed
by Jose Mourinho, when asked who
he would prefer to face.
“As a football fan Barcelona or
[Real] Madrid but we’ll see what the
draw will be,” said the Dutchman.
Newcastle newspaper poll which
asked fans who they would like as the
club’s next boss.
Picking Pardew represents a huge
risk for Toon owner Mike Ashley, who
was only just starting to regain a
modicum of tolerance among the
club’s fans.
Pardew, 49, last managed in the
Premier League almost four years
ago, when Charlton were relegated
under his watch in the 2006-07 sea-
son.
Southampton hired him in the
summer of 2009 and, although he led
them to the Johnstone Paint Trophy
and finished seventh in League One,
he was fired in August after falling
Newcastle replacing Hughton with
Alan Pardew, a manager who has
achieved little that the previous
incumbant hasn’t.
Pardew took West Ham into the top
flight, via the play-offs. Hughton led
As is
there want, Arsenal made life tough
for themselves after Cleo’s deflected
strike in the 52nd minute cancelled
out Van Persie’s first-half penalty.
Substitute Walcott eased the ten-
sion with a smartly taken volley 20
minutes later, before Nasri put the
gloss on the scoreline with a crisp
out with chairman Nicola Cortese.
Pardew came in for fresh criticism
yesterday from Cortese, who replaced
him with Nigel Adkins.
He said: “I’m not going into details
but there were plenty of reasons why
it ended up with the sack.
“All the attributes Nigel Adkins has
added is something we were missing
before. He’s changed the attitude. His
personality, his way of being, it’s
motivated people.”
Hughton left the Magpies in 11th
place, follwing high-profile wins over
Arsenal, Aston Villa and fierce local
rivals Sunderland. But results stut-
tered lately and Ashley dispensed
with the formeer Tottenham coach.
Newcastle back into the Premier
League at the first time of asking
with a record points total.
The club had to have a really good
explanation for getting rid of
Hughton and, besides a conspiracy
theory involving owner Mike Ashley
taking the flak for the sacking before
selling to a buyer waiting in the
wings, I find it impossible to identify
one.
The players won’t be behind
CITYA.M. 9 DECEMBER 2010
Celebration time for
Dutch master Van Persie
Picture: ACTION IMAGES
low finish from just
inside the box after
good work from
Alex Song.
GROUP H
TEAM PLD W D L F A PTS
Shakhtar 6 5 0 1 12 6 15
Arsenal 6 4 0 2 18 7 12
Braga 6 3 0 3 5 11 9
Partizan 6 0 0 6 2 13 0
ALAN PARDEW MANAGERIAL HISTORY
Oct 1999: Appointed Reading boss after a
brief successful spell as caretaker.
May 2002: Guides Reading to automatic pro-
motion to The Championship.
Oct 2003: Having resigned as Reading boss,
Pardew takes over at West Ham.
May 2005: Takes Hammers back up to the
Premier League following victory in the play-
off final against Preston.
Dec 2006: Sacked by West Ham after the club
suffer worst run in 70 years. Two weeks later
he resurfaces at Charlton.
Dec 2008: Leaves the Addicks by mutual con-
sent after a poor run of form following their
relegation from the Premier League.
Jul 2009: Named new Southampton boss.
Aug 2010: Sacked by Southampton.
Pardew, if he is the new man. They
liked Hughton and will be shaken by
his exit. They need someone with
wow factor to lift them again; I don’t
see Pardew as that manager.
Gerard Houllier, at Aston Villa, has
found how difficult it is to take over
at a club when the season is well
underway and with a team used to a
certain way of doing things, estab-
lished by the previous manager.
Pardew faces the same arduous task.
 CITYA.M. 9 DECEMBER 2010
FOOTBALL
COMMENT
W chance to end shocking run
HILE Robin van Persie’s
return to fitness is
undoubtedly good news for
Arsenal, it presents Arsene
Wenger with a tactical puzzle, writes
Frank Dalleres.
His deployment behind a centre
forward -- Marouane Chamakh last
night, Nicklas Bendtner in last
week’s Carling Cup win – neatly
solves the problem of how to incorpo-
rate the club’s most gifted centre-for-
ward without losing a target man.
However, on the evidence of his
last two starts, the system is highly
suspect. Yes, the Gunners won both
games, but in unconvincing fashion,
and with a lack of creativity in mid-
field.
Van Persie’s inclusion necessitates
two more defensively minded mid-
fielders -- last night Denilson and
Alex Song -- who cannot dictate the
play.
More importantly it means Samir
Nasri, by far Arsenal’s best player this
season, is shunted into a wide role,
while Van Persie,who is inventive but
no playmaker, is forced to retreat
ever deeper in search of the ball. In
short, it gets the best out of no-one.
CHAMPIONS LEAGUE DRAW FORMAT
The draw for the next round is made in
Switzerland next Friday. The winners
of each group will be pitted against the
runners-up of another, with teams
from the same country prevented from
facing each other.
Group Winners Runners-Up
TOTTENHAM Inter Milan
Schalke Lyon
MAN UTD Valencia
Barcelona FC Copenhagen
Bayern Munich Roma
CHELSEA Marseille
Real Madrid AC Milan
Shakhtar Donetsk ARSENAL
Blatter accuses England of being sore
losers and claims Fifa are squeaky clean
FOOTBALL
▲
FIFA president Sepp Blatter has
described England as “bad losers”
over the fall-out from the failed 2018
World Cup bid.
Blatter also rejected the corruption
allegations printed and broadcasted
by the British media and said he was
being targeted by anti-FIFA journal-
ists.
He said: “To be honest, I was sur-
prised by all the English complaining
after the defeat. England, of all peo-
Pavlyuchenko to sign new Spurs deal
FOOTBALL
▲
TOTTENHAM have opened contract
talks with Roman Pavlyuchenko less
than a year after the Russian striker
seemed destined to leave White Hart
Lane.
Pavlyuchenko, 28, appeared to be
on the verge of sealing a switch to
Birmingham City in January but the
two clubs were unable to agree a fee.
Now, the striker’s agent has
revealed that manager Harry
Redknapp is keen to keep the striker,
Carlo rues Chelsea’s missed
MARSEILLE 1 Bruma and Ferreira
CHELSEA 0 Picture: ACTION
▲
FOOTBALL
BY JAMES GOLDMAN
CHELSEA manager Carlo Ancelotti
fears that losing is becoming an
unshakable habit after Brandao’s late
winner ruined Chelsea’s previously
flawless record in this season’s
Champions League.
Defeat at the hands of the French
champions, whose fans afforded
Didier Drogba a hero’s reception on
his return to the club he left for
Stamford Bridge in 2004, means
Chelsea have failed two win six of
their last eight games – losing four –
in all competitions.
The champions visit London rivals
Tottenham on Sunday in a match
Ancelotti admits many will
anticipate his side losing.
He said: “Against
Marseille was a good
opportunity to move on
from this period but we
lost this opportunity,” said
the Italian (right), “But
now we have another
good opportunity,
a ga i n st
Tottenham.
“It will be
a difficult
game to
win away
against a
strong
team.
“Now
ple, the motherland of fair play ideas.
“Now some of them are showing
themselves to be bad losers.”
On the subject of alleged corrup-
tion and vote-rigging, Blatter insisted
the governing body were the subject
of false allegations, but admitted a
change of image was required.
“There is no systematic corruption
in FIFA. That is nonsense,” he said.
“We are financially clean and clear.
But we need to improve our image.
We also need to clarify some things
within FIFA.”
who has scored eight goals in 21
appearances for Spurs this season.
“Redknapp wouldn’t sell
Pavlyuchenko now,” said agent Oleg
Artemov. “The same can be said of the
chairman Daniel Levy.
“Three months ago, Levy suggested
Roman sign a new contract on
improved terms. We are in negotia-
tions and discussing the details.”
“Roman isn’t even considering the
option of returning to Russia any
more. He has changed greatly over
two-and-a-half years in London.”
Sport 39
are distraught after
conceding late on.
IMAGES/GETTY
WILKINS HAS NO SACK ANSWERS
FORMER Chelsea assistant boss
Ray Wilkins still has no idea why
he was sacked last month, but
revealed it was not because he
had a row with ownver Roman
Abramovich.
“I don't think I fell out with him
at all,” said Wilkins, whose sudden
exit has been identified as a rea-
son behind the club’s recent poor
form. “I think if that was the case,
then I would have been removed
from my position immediately.
“The reason [for the sacking]
hasn’t been given, so I’m still wait-
ing for that. You haveto accept it
because nothing surprises you in
football any more.”
everybody thinks we will lose this
game. I am worried just
Florent Malouda and Salomon Kalou,
while at the other Gabriel Heinze’s GROUP F
because we are not header was ruled out for offside. TEAM PLD W D L F A PTS
doing our best.” The match appeared to be petering Chelsea 6 5 0 1 14 4 15
On an eventful out into a draw, but nine minutes Marseille 6 4 0 2 12 3 12
evening, Chelsea, to from time, Taye Taiwo’s cross-shot
typify their recent for- found Brandao, via a defelction, and Spartak 6 3 0 3 7 10 9
tune, or lack of it, he stabbed home from six yards. MSK Zilina 6 0 0 6 3 19 0
were denied
two first-half
penalties for
trips on
L
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IVE B
BARCLAYS
ARCL AYS PREMIER
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LE AGUE FOOTBALL
SPORT | IN BRIEF
Byrne out for five weeks
RUGBY UNION: Wales and
Ospreys full-back Lee Byrne will
miss his club’s Heineken Cup dou-
ble header against Munster with
a fractured thumb. The 30-year-
old British and Irish Lions star
was criticised by Ospreys for fail-
ing to attend an appointment
Saturday 11th December
with a specialist to assess the (Kick-Off 3pm) at Craven Cottage
severity of the injury which has
now ruled him out for five weeks. Prices from: £35 Adults/£15 Juniors
Renault strike Lotus deal Buy now @ fulhamfc.com
FORMULA ONE: The Renault F1
team is to be renamed Lotus or call 0843 208 1234 (option 1)
Renault GP from next season
after the French car company
sold its remaining shares in the
team. The move, which will see
Group Lotus plc acquire a major
equity stake in Renault from pri-
vate investment group Genii
Capital, means there will be two
Formula One teams in 2011 with
Lotus in their name.
Bopara extends Essex stay
CRICKET: Essex and England
batsman Ravi Bopara has signed
a new two-year deal with the
county to end months of specula-
tion over his future. The 25-year-
old all-rounder, who has been
spending the winter playing for
South African team KwaZulu-
Natal Dolphins, had been consid-
ering the contract offer since
early September.