BUSINESS WITH PERSONALITY
NEWS CORP
Issue 1,304 Thursday 20 January 2011
GOLDMAN LOSES SHINE
AS PROFITS NOSEDIVE
▲
BANKING
BY JULIET SAMUEL
PAY per employee at Wall Street’s top
investment bank fell by 14 per cent in
2010 compared to the previous year,
figures showed yesterday. The decline
in pay at Goldman Sachs comes amid
a fresh row about bonuses, despite
compensation tracking the bank’s
performance.
The bank announced a 13 per cent
decline in revenues to match the fall
in its pay costs. However, the ratio of
pay to revenues grew to 39.3 per cent
this year, up from an all-time low of
35 per cent in 2009.
Although the bank spent just four
per cent less in total on staff pay, it
hired an extra 3,200 people to bring
its headcount to 35,700. A third of the
additional hires were in “growth mar-
kets” as opposed to mature markets
like the US and UK, with the focus
particularly on wealth management.
The extra hires mean that average
pay per head fell to $430,000 or
£269,000 last year. It is not clear what
proportion of the pay-outs is made up
of base salaries, benefits and stock
options versus bonuses, but fixed pay
is understood to have risen in
response to a raft of regulations tar-
geting bonuses.
The decline in pay was on the back
of plunging earnings overall at the
HMV in crisis talks as debt threatens bank limits
▲
RETAIL
BY ALISON LOCK
TROUBLED music retailer HMV has
called in KPMG for debt management
advice to try to stop it breaching
upcoming bank covenants.
HMV, which experienced a torrid
day yesterday after admitting that
credit insurers had reduced their cov-
erage of its sales amid fears of its cred-
itworthiness, has hired the
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bank, with pre-tax profits dropping FOURTH-QUARTER US BANK EARNINGS
35 per cent year-on-year. Although
first-half earnings held up, the last six
months have seen clients scale down
their trading due to mounting uncer-
tainty about sovereign debt.
The fourth quarter of 2010 saw rev-
enues from executing fixed income,
currency and commodities trades for
institutions drop 37 per cent to
$13.71bn. The bank put the fall down
to “lower client activity levels, which Goldman Sachs JP Morgan Chase Citigroup
reflected broad market concerns
including European sovereign debt Revenues $8.6bn Revenues $6.2bn Revenues $18.4bn
risk”. Earnings Earnings
Earnings
$3.79 per share (EPS) $1.12 per share (EPS) $0.04
The market turmoil also hit corpo-
per share
rate finance activity as companies put
off floats and M&A, so that invest- EPS change EPS change EPS change
on 2009 -53% on 2009 +51% on 2009 +112%
ment banking revenues dropped 10
per cent.
The drop in traditional investment
banking activities has been a theme
for Goldman’s rivals as well, with JP
Morgan reporting a 21 per cent drop
and Citigroup seeing a 19 per cent
fall in investment banking net
income.
Goldman’s shift towards hiring for
its asset management business in less BNY Mellon Wells Fargo Northern Trust
developed markets will add to a grow-
ing debate as to whether the tradi-
tional investment banking model is Revenues $3.8bn Revenues $21.5bn Revenues $906m
undergoing fundamental changes in Earnings Earnings Earnings
per share $0.55 per share $0.61 per share
$0.64
the wake of the financial crisis and
expanding regulatory costs. EPS change EPS change EPS change
FOCUS ON US BANKS: P5 Goldman boss Lloyd Blankfein saw profits dip last year on 2009
-7% on 2009 +663% on 2009 -22%
accountant to provide specialist debt commitments ahead of covenants UK stores this year to avoid breach- tax in 2009, up 17.7 per cent from
advisory services, sources told City A.M. that are due in April. ing its banking covenants. Like-for- 2008’s level of £63m. But its debt has
The work is expected to involve “It announced that it had a prob- like sales plunged 13.6 per cent in rocketed after a series of acquisitions
renegotiating its bank borrowing lem with its bank covenants and it the five weeks to 5 January, a critical – from just £6.5m in the year to June
had to get someone in there, and period for the year’s profits. 2009 to £67.6m by June 2010 and
HMV chief executive that someone was KPMG,” one But HMV, led by boss Simon Fox, £151.6m by October 2010. In
Simon Fox has called in source said. “It is true that it has “is still a profitable business” that is December it said it will sell its flag-
called them in on this occasion and expected to make a £46m full-year ship Oxford Street store for £13.75m,
KPMG to advise on how for this reason.” The retailer has profit, and its suppliers remained to pay off debt it is believed.
to manage its debts that come under increasing pressure “fully behind” the company, the HMV is expected to make another
have risen sharply since admitting in its trading update source told City A.M. announcement today as it battles to
two weeks ago that it will close 60 HMV made £74.2m profit before restore its credibility. SHARE FALL: P15
£/$ 1.60 unc £/¤ 1.19 unc ¤/$ t 1.35 +0.01 Certified Distribution
29/11/10 till 02/01/11 is 98,444
 2 News
UK economy has hit turbulence again
EDITOR’S LETTER
ALLISTER HEATH
AFTER a run of good news, the UK
economy has hit choppy waters once
more, though hopefully conditions
will soon improve again. Growth
bounced back between February and
October 2010. Since then, manufactur-
ing has remained buoyant; but servic-
es have slowed, especially in December
(the snow was bad). Construction is
slowing. The services sector purchas-
ing managers index for December was
the single worst piece of data for the
UK economy I have seen in ages – fortu-
nately, January will be better, but this
blip in the recovery is unfortunate.
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Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
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Lifestyle Editor Zoe Strimpel
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WHAT THE OTHER PAPERS SAY THIS MORNING
MOD FACES FRESH CRISIS OVER ITS
FUNDING
Senior figures in the Ministry of
Defence are warning of a possible
reopening of last October’s Strategic
Defence and Security Review because
the MoD lacks the funds needed to
provide the military capability
demanded by the government for
2020. The department has discovered
that it needs to find at least £1bn a
year of additional cuts if they are to
meet the Treasury’s targets.
PENSION CORP'S MOVE SET TO FREE
CAPITAL
Pension Corporation has offloaded
£500m worth of risks attached to pen-
sioners living longer than expected as
it looks to free capital so it can com-
pete for new business. The company,
one of a handful of businesses set up
to take on UK defined benefit
schemes from company pension
Yesterday’s jobs data was downbeat,
albeit not irreparably so from a longer-
term perspective. Claimant count
unemployment reached 1.616m in
January 2010. It then fell until July,
rose slightly, and has fallen back since
(to 1.456m) in December. The number
of people on the dole thus dropped
nine per cent last year, a decent result.
Less good were the survey-based
measures. Employment bottomed out
at 28.843m in the three months to
February 2010. By August, it had
bounced back to 29.158m, before
falling back down to 29.089m in three
months to November. Nevertheless, we
remain up 246,000 since February.
This is not as good as it sounds: full-
time jobs are down 4,000; part-time up
250,000. This is usual at this stage in
the cycle but underemployment is rife.
Public sector jobs peaked in
December 2009 at 6.097m and are now
down to 6.014m, a drop of 83,000.
Private sector jobs troughed at
22.764m at the end of 2009. By the end
of June, private employment had
UK could face
£1bn EU fines
EUROPEAN REGULATION
▲
BY KATIE HOPE
A SERIES of catastrophic failures has
left Britain facing up to £1bn in fines
related to its handling of the European
Union agricultural scheme, in which
EU funds are given to member states
to support their farming industries.
The National Audit Office (NAO),
which signs off on financial state-
ments compiled by the finance min-
istry, said yesterday the scale of the
fines meant it could not sign off on
the finance ministry’s statement on
the use of EU funds.
The Treasury’s statement on the use
of EU funds in the 2008-2009 financial
year highlights £398m of confirmed
“corrections” – a fine the EU imposes
by withholding money – giving
reduced funds to Britain in future --
and a provision for further possible
funds, has been trying to raise up to
£600m in fresh capital since 2009.
TWO FOUND GUILTY IN TOREX FRAUD
CASE
Two former Torex Retail executives
have been convicted of defrauding
the shareholders of the former AIM-
quoted group. Edwin Dayan and
Christopher Ford were directors ar
the retail company’s subsidiary XN
Checkout and caused more than
£1.65m in ficticious profits to be
recognised in the firm’s accounts.
CITY ANALYST CALLS FOR TESCO TO
START PRICE WAR
A leading City analyst has called for
the incoming chief executive of Tesco
to embark on a massive UK price war,
to cripple the competition and stop
Tesco’s rivals opening a swathe of
new stores. Dave McCarthy, analyst at
Evolution Securities, said Tesco
should “reposition on UK pricing”
under Philip Clarke, who becomes
group chief executive in February.
reached 23.111m, staying put in
September. For all the disastrous head-
lines yesterday, private jobs were still
up by 347,000 over nine months. Extra
jobs may have been lost in the run up
to Christmas, but the private sector
can clearly easily mop up losses in the
state sector. Whether it can grow as
fast as the overall number of new peo-
ple entering he jobs market is less cer-
tain. Unemployment grew until
February 2010, hitting 2.486m. It then
fell to 2.448m by August. It is now back
up to 2.498m, slightly higher than at
the start of the year. More than the
entire increase can be accounted for by
a rise in joblessness among 18-24 year
olds, suggesting schools and universi-
ties are failing to teach the right skills.
This impression is reinforced by
another fact: the number of UK-born
people in employment was 25.41m, up
100,000 on a year earlier; yet the num-
ber of non-UK born in employment
was 3.886m, up 204,000. A record
number of overseas-born people have
jobs – this group has more than recov-
corrections of £601m.
The fines “represent huge past costs
and potential future costs to the tax-
payer of implementing EU schemes in
the UK,” Amyas Morse, the auditor
general, said in an unusually blunt
assessment. Official statements from
the Treasury and other Whitehall
departments from that period cannot
yet be seen as “a true and fair report of
the use of EU funds in the UK,” he said.
The blame for the waste of money is
largely being laid at the door of the
Department for Environment, Food and
Rural Affairs which oversees EU subsidies.
National Audit Office
chief Amyas Morse
said there were several
“significant” issues in
the UK’s accounts
FRIENDS IN NEED: MUSIC CHIEFS LINE
UP TO HAIL UNIQUE HMV
The music industry has come out
fighting for HMV after supply fears
sent the company’s shares to a new
low. Seven leading executives, includ-
ing the heads of the four largest
record labels, have written to The
Times pledging to support HMV
through its recent difficulties and
praising its contribution to the music
industry.
WIND POWER BRINGS NEW JOBS TO
HUMBERSIDE
Hull’s prospects of becoming the cen-
tre of Britain’s wind energy industry
will move a step closer today with an
announcement from Siemens that it
plans to build an £80m wind turbine
factory in the city. Up to 700 jobs will
be created as part of the German
manufacturer’s choice for its new
plant to make offshore turbines.
ered from the recession, led by growth
in workers born in Eastern Europe (a
record 593,000 now work here), Africa
and India. This performance is to the
great credit of the overseas-born (of
which I too am one) – but there is evi-
dently something wrong with the
British educational system and the
motivations, ability and incentives of
parts of the workforce.
Despite the present choppiness, the
UK economy will again create more
jobs than are lost this year. Austerity
policies are essential to stave off bank-
ruptcy. But the government’s inability
to articulate a pro-jobs, anti-red tape
policy to make it easier and less risky
for firms to hire people is a major fail-
ure. Its educational reforms are being
slowed by opposition from councils,
bureaucrats and unions. Its welfare
reforms would boost employment but
will take ten years. For the sake of
Britain’s jobless, David Cameron must
rediscover a sense of urgency.
allister.heath@cityam.com
Follow me on twitter: @allisterheath
James Murdoch is part of the News Corp team that want to buy BSkyB
Sky News could be sold
MEDIA
▲
BY MARION DAKERS
News Corp could be prepared to dis-
pose of Sky News or other assets to
smooth its path to taking full control
of BSkyB, it emerged last night.
Rupert Murdoch’s media group has
approached the Department of
Culture, Media and Sport (DCMS), the
body responsible for approving the
takeover of BSkyB, with a range of
options that include selling Sky News,
according to the Financial Times.
US TRADER HETCO DRIVES UP OIL
PRICE
An American trading group reported-
ly building up a huge physical posi-
tion in North Sea oil has driven
London Brent prices above $98 a bar-
rel. Hetco, which is part-owned by US
oil and gas group Hess Corp, was said
to have taken control of eight North
Sea Forties oil shipments and two
Brent cargoes – and it is believed to be
in the market for more.
SENIOR GOLDMAN SACHS WORKER
LEAVES AFTER INTERNAL BREACH
One of Goldman Sachs’ most senior
London-based staff has left the bank
just days before the firm is due to pay
out billions of pounds in staff bonus-
es. Kevin Connors, co-head of global
foreign exchange sales for G10 curren-
cies, left the bank last week for
allegedly breaking unspecified inter-
nal rules.
CITYA.M. 20 JANUARY 2011
NEWS | IN BRIEF
Floods dampen BHP coal output
BHP Billiton, the world’s biggest mining
company, said its coal production tum-
bled 30 per cent this quarter compared
to the previous three months, after cata-
strophic flooding in Australia badly hit
output. The London-listed group said its
coal output faces long-term disruption,
echoing a similar warning from Rio Tinto
earlier in the week. BHP’s iron ore out-
put rose four per cent year-on-year on
the back of rising demand for industrial
raw materials. Iron ore is expected to
account for more than $5bn (£3.1bn) in
first-half earnings for BHP.
Aviva loses its European chief
Insurer Aviva is replacing its head of
Europe for the second time in 18
months, after Andrea Moneta left the
firm. Britain’s second-biggest insurer by
market value said Moneta, the former
chief financial officer at Italy’s UniCredit
Group and ECB employee, would leave
the company at the end of February. Igal
Mayer has been appointed chief execu-
tive for Europe with immediate effect
and will be succeeded by Richard
Hoskins, the current chief financial offi-
cer of North America.
Watchdog Ofcom has already told
DCMS it should refer the takeover
£7.5bn bid to the Competition
Commission. The larger group, which
includes chairman and chief execu-
tive of News Corp in Europe and Asia
James Murdoch, had bid to buy the
shares in BSkyB that News Corp does
not already own, in a deal that valued
the broadcaster at roughly £12bn.
A spokesperson for DCMS said the
department “would not provide a
running commentary”, while News
Corp’s US office did not return calls.
NOKIA CANCELS US LAUNCH OF X7
PHONE
In another setback for Nokia Corp,
the Finnish mobile-phone giant has
canceled the US release of a smart-
phone that was slated to launch
exclusively this year with AT&T, peo-
ple familiar with the situation said.
Nokia had intended to debut the
touchscreen phone, dubbed the X7, in
conjunction with AT&T ahead of the
Mobile World Congress trade confer-
ence next month.
ALFA SEEKS TO CALM VIMPELCOM
SPAT
The chief executive of Russian con-
glomerate Alfa attempted yesterday
to calm tensions that have flared
between it and Telenor, a rival share-
holder in VimpelCom, over a revised
deal to merge the Russian mobile
operator with the telecom assets of
an Egyptian billionaire.
CITYA.M. 20 JANUARY 2011
EU suspends carbon market
TRADING
▲
BY HARRY BANKS
The European Union froze spot trade
in its carbon market for a week yester-
day – the longest period in its histo-
ry – after a security breach, seeking to
protect the battered reputation of the
EU’s main weapon against climate
change.
The US, Japan and Australia have
all delayed implementing similar cap
and trade schemes, and the latest
glitch to the EU system -- by far the
largest and most successful such
UK sales help
eBay results
top forecasts
CONSUMER
▲
BY MARION DAKERS
ONLINE retailer eBay beat Wall Street
estimates during Christmas trading,
posting a five per cent rise in quarter-
ly revenue to $2.495bn (£1.56bn).
Net revenue dropped 59 per cent
year on year to $559.2m, the firm said
yesterday, following massive gains
from selling internet phone service
Skype in the same quarter last year.
Underlying earnings rose 24 per cent.
On an adjusted basis, eBay earned
52 cents per share, surpassing the 47
cents expected by analysts.
Its shares rose five per cent in after-
hours trading.
eBay had 94.5m active users in the
fourth quarter of 2010, up five per
cent on last year, with particularly
strong growth in the UK, US and
Germany that was partially offset by
sluggish trading in China and Korea.
PayPal also performed well, with a
28 per cent jump in the number of
payments to 421.1m in the three
months to the end of December.
*Exclusions apply, see instore for details.
scheme in the world -- could detract
further from adopting carbon trade
as a global policy.
The trading scheme limits the car-
bon emissions of all big EU factories
and power plants by issuing permits
for each tonne of carbon emitted,
which companies can then trade
among themselves.
The European Commission sus-
pended much of its Emissions
Trading Scheme, the hub of a €92bn
(£77.4bn) global market, following the
suspected theft of about €7m of emis-
sions permits from the Czech
Users of the eBay website made
$15bn-worth of transactions, exclud-
ing vehicles, in the quarter with more
than $9bn coming from outside the
United States.
Vehicle sales worth nearly $2bn
took place on eBay during the quar-
ter.
“We are driving strong global
growth at PayPal and strengthening
our core eBay business,” said chief
executive John Donahoe.
“And we are innovating quickly in
areas such as mobile, which is help-
ing to position us at the forefront of
trends shaping the future of shop-
ping and payments.”
The company is hoping to prove to
shareholders that improvements to
its site and user experience, including
lower upfront fees and daily deals, is
encouraging traffic and delivering
more consistent sales.
eBay said it predicts stable global
interest rates and market growth,
and expects revenue growth of
between 12 and 16 per cent in the
coming year.
Republic’s carbon registry. It allowed
trade in derivative markets to continue.
This theft and a hacking attack on
the Austrian registry on 10 January
follows a raft of scandals to hit the
market in the past two years, includ-
ing VAT fraud, a phishing scam (or
computer fraud) and the re-sale of
used carbon credits.
“All traders have left the market -
this is serious,” said one trader.
Europe’s top climate official, Jos
Delbeke, said he was “speechless
about the negligence some member
states have been showing”.
Former trader Danielle Chiesi admitted to passing on insider information in New York
Paulson eyes up Taylor
Wimpey’s US business
▲
PROPERTY
HOUSEBUILDER Taylor Wimpey has
received at least three bids for its
North American assets, which could
be worth about £600m, according to
reports last night.
Hedge fund billionaire John
Paulson’s Rain Tree Investment, Barry
Sternlicht’s Starwood Capital Group
and a private US homebuilder have
submitted bids for Taylor Morrison,
News 3
the firm’s arm in North America.
Both Rain Tree and Starwood
reportedly bid the branch’s book
value, which analysts put at about
£600m. Taylor Wimpey hired
JPMorgan Chase last year to sell its US
and Canadian assets, and said in its
trading update on Tuesday that it was
in the early stages of evaluating sever-
al interested bidders.
Taylor Wimpey was unavailable for
comment last night.
New Castle
trader Chiesi
pleads guilty
▲
ENFORCEMENT
A FORMER hedge fund trader pleaded
guilty to passing inside information to
Galleon Group founder and co-defen-
dant Raj Rajaratnam in a New York
court yesterday.
Danielle Chiesi had been due to
stand trial alongside Rajaratnam, who
denies any wrongdoing.
The former trader at New Castle
Funds, which was once part of Bear
Sterns, was accused of making around
$4m (£2.5m) in illegal profits from
trades on confidential company infor-
mation during 2008.
She learnt secret data about technol-
ogy firms Intel, IBM and AMD, prosecu-
tors said.
Chiesi allegedly used tip-offs from
former IBM executive Robert Moffat,
which she then passed to Rajaratnam.
Moffat pleaded guilty and was sen-
tenced to six months in prison and a
$50,000 (£32,410) fine last September.
Of the 24 people criminally charged
in the Galleon insider trading case, 16
have now pleaded guilty.
The federal court in New York is due
to sentence Chiesi on 13 May. She is set
to receive between 37 and 46 months
in prison as part of a plea bargain, but
her lawyer said she is not expected to
testify against Rajaratnam.
 4 News
Banks boost capital
ahead of Basel rules
▲
BANKING
BY RICHARD PARTINGTON
THE AMOUNT of risk-adjusted capital
(RAC) held by banks around the globe
is increasing as institutions prepare
for new regulatory requirements.
Banks worldwide had an average
eight per cent RAC ratio as of June last
year, up from 6.7 per cent at the same
point in 2009, according to Standard &
Poor’s (S&P) latest analysis.
S&P found banks had been working
to improve their capital position
ahead of tighter Basel III regulations,
which demand lenders have stronger
core Tier 1 ratios of capital.
“Capital raising, conversion of
ANALYSIS: BANKS’ RISK ADJUSTED CAPITAL RATIOS
Bank
1 Bank of China (HK)
2 HSBC
3 UBS
4 JP Morgan
5 Barclays
hybrids into common equity, suspen-
sion of dividends, asset disposals, and
a reduction in risk assets have allowed
a number of banks to significantly
increase their capital ratios in the past
18 months,” S&P credit analyst
Bernard de Longevialle said.
The Bank of China (Hong Kong) was
ranked strongest on the agency’s scale
with 13.4 per cent, while German
state-backed lender Commerzbank
was placed bottom of 75 banks exam-
ined, with a rating of 3.6 per cent.
HSBC was the highest placed British-
based bank, with a ratio of 9.4 per cent,
whilst Lloyds Banking Group was the
lowest placed with a ratio of 6.7 per
cent
RAC Ratio
13.4% 6 RBS
9.4% 7 Morgan Stanley
8.8% 8 Goldman Sachs
8.5% 9 Lloyds
8.4% 10
The latest S&P ratios are significant-
ly lower on average than Basel I and
Basel II Tier 1 ratios, according to the
report.
S&P claims the measure offers a
more comparable and internationally
consistent measure of bank capital
than alternatives, such as the Basel
Tier 1 ratio.
Yet the ratings agency believes as
banks improve their capital positions
for Basel III the gap between the two
measurements should close, accord-
ing to de Longevialle.
“The expected implementation of
the Basel III framework is likely, in our
view, to reduce the gap between RAC
and regulatory ratios,” he said.
Bank RAC Ratio
8.4%
8.1%
7.7%
6.7%
Commerzbank 3.6%
Source: S&P
CITYA.M. 20 JANUARY 2011
One-time cash ANALYSIS l BNY Mellon
$ 31.48
32 19 Jan
cows aren’t 30
making hay
28
26
25 Oct 12 Nov 3 Dec 23 Dec 13 Jan
IS THE party over? That is the
question that shareholders of
Goldman Sachs will be asking
after yesterday’s lacklustre results.
People might still be on the dance-
floor, but the bank has certainly
lost its groove.
Fixed income, commodities and
currencies (FICC) trading was the
biggest casualty, falling 39 per
cent compared to the fourth quar-
ter of 2009.
That reflects a tough environ-
ment for everyone, but Goldman
seems to be faring particularly
badly: Deutsche Bank says FICC at
its peers was down by a less severe
22 per cent.
Goldman cited subdued client
activity in the face of a choppy
recovery and a quieter M&A out-
look.
But it is unclear whether this is
a blip, or a permanent scar caused
by the financial crisis.
The fact that Lloyd Blankfein is
hiring staff in emerging markets
as one-time cash cows stop mak-
ing hay suggests he is hedging his
bets. Investors might want to
think about doing the same.
Lloyd Blankfein is hiring
staff in emerging markets
BOTTOMLINE as FICC trading slumps
Picture: REX
Analysis by David Crow
 CITYA.M. 20 JANUARY 2011 Focus on US banks 5

Acquisitions
ANALYSIS l Northern Trust ANALYSIS l US Bankcorp ANALYSIS l Well Fargo & Co
$ 52.49 28 26.52 34 31.81
19 Jan $ 19 Jan $
56 19 Jan
54
26 30
52

50

48

25 Oct 12 Nov 3 Dec 23 Dec 13 Jan

24

25 Oct 12 Nov 23 Dec 14 Dec 4 Jan

26

25 Oct 12 Nov 23 Dec 14 Dec 4 Jan

boost profits
at BNY Mellon
BANKING Servicing business and BHF Asset

▲
BY HARRY BANKS
BANK of New York Mellon said yester-
day its fourth-quarter profit from oper-
ations increased 10 per cent as
acquisitions bolstered fee income.
Operating earnings rose to $734m
(£460m), or 59 cents per share, from
$667m, or 55 cents a share, a year earli-
er. Analysts had expected operating
earnings of 57 cents per share.
The bank’s operating earnings, on
which analysts and investors focus,
excludes restructuring and merger
costs as well as tax benefits from the
year-earlier period.
Income from continuing operations
declined to $690m, or 55 cents per
share, from $712m, or 59 cents a share,
a year earlier.
Revenue of $3.8bn was up 14 per
cent from a year earlier and 10 per
cent from the third quarter. That
included a 16 per cent jump in fee
income to $3.0bn, helped by the acqui-
sitions of PNC’s Global Investment
Servicing of Germany last year.
BNY said it had a record $25 trillion
of assets under custody at the end of
2010, a 12 per cent increase from the
end of 2009 and a two per cent gain
over the prior quarter.
The stock, which has gained 10 per
cent over the past year, got a boost in
November when Warren Buffett’s
Berkshire Hathaway investment firm
disclosed it had bought a stake during
the third quarter.
Meanwhile, BNY’s chief executive
Robert Kelly said the bank was looking
to buy back stock and resume divi-
dend payments in 2011, rather than
pursue more large acquisitions
He said: “We hope to be in a position
where we can do dividends and buy-
backs again. Last year, there were some
motivated sellers. I kind of view that as
a one-time event.”
BNY cannot resume dividends or
buybacks, suspended because of the
2008 financial crisis, without regula-
tors’ permission

Low rates hurt

Northern Trust
Havens to become Earnings rise at Wells
Fargo and US Bancorp
Citigroup’s No. two
▲

BANKING
▲

NORTHERN Trust said yesterday its BANKING increase in fourth-quarter profit,

fourth-quarter profit fell 22 per cent, operations. The company announced helped by an $850m (£532m) reserve
▲

citing low interest rates.

For the three months that ended 31
December, the trust bank reported a
profit of $157.1m (£98m), or 64 cents
per share, compared with a profit of
$200.3m, or 82 cents per share, a year
earlier.
The results for the quarter benefit-
ed from an after-tax expense reduc-
tion of $12.9m, or five cents per
common share.
BANKING
CITIGROUP named investment bank
chief John Havens president and chief
operating officer yesterday, expand-
ing its most senior level of executives
and elevating a long-time friend of
Vikram Pandit.
Havens, currently head of
Citigroup’s institutional clients
group, will fill a vacant role as he
takes charge of the bank’s day-to-day
his promotion along with several
other management changes.
Citigroup’s investment bank has
struggled recently, falling to eighth
place from fourth in Thomson
Reuters’ M&A rankings.
Citigroup announced the promo-
tion a day after the company reported
a worse-than-expected fourth-quarter
profit, due to a steep drop in bond-
trading revenue.
WELLS Fargo and US Bancorp said
despite lending profits being
squeezed by low interest rates,
improving credit quality helped both
banks post higher-than-expected
fourth-quarter earnings.
The banks reported substantial
improvements in nonperforming
loans and reduced the funds set aside
to cover bad loans.
Wells Fargo posted a 21 per cent
release. The bank said earnings rose
to $3.4bn, or 61 cents a share, meet-
ing analysts’ expectations.
US Bancorp posted a 61 per cent
jump in net income as the regional
bank released $25m in loan loss
reserves. The reserve release was its
first since the financial crisis began
in 2008. The bank’s earnings per
share of 49 cents beat analysts’ aver-
age estimate by three cents.
 The Capitalist
6 CITYA.M. 20 JANUARY 2011
MYSTERY
OVER £140M
FLAT IN ONE
HYDE PARK
THERE was at least one hot topic of conver-
sation at yesterday lunch-time’s launch of
One Hyde Park, the world’s most
expensive apartments, and that was the
identity of the buyers of the three
Penthouse flats, the most expensive of
which sold for £140m.
Around 350 guests, including Simon
Cowell, Arcadia boss Philip Green and
Formula One supremo Bernie Ecclestone,
were invited to the launch party at the
Knightsbridge development, where they
were shown a selection of the 86 units in
the complex.
The prices, averaging about £6,000 a
square foot, are the highest ever paid for
residential space, according to property
experts. The development, which is the
Candy brothers’ most ambitious project
yet, is a joint venture between their
Guernsey-based vehicle, CPC Group, and
Waterknights, a company owned by the
Qatari Prime Minister, Sheikh Hamad bin
Jassim bin Jabr Al Thani.
Some say that the backers of the project
liked the investment so much that they’ve
put some of their money into the pot
though this seems to be wide of the mark,
at least as far as the top £140m penthouse
Who lives in a house like this? The residents of One Hyde Park’s penthouses remains a mystery
is concerned. “The buyer of that is definite-
ly not anybody associated with the proj-
ect,” says David Forbes at Savills, one of the
agents on the project. “There’s been a lot
of speculation but we’re not allowed to
comment on any of the sales,” he added.
The Candys’ own spokesman said the
buyer of the most expensive penthouse
came through an enquiry from the official
web-site. There’s no confirmation of who
he or she is and nor does the purchase
appear yet on the Land Registry.
A CAUTIONARY TALE
Sean Dilley (pictured top right), the blind par-
liamentary lobby hack whose guide-dog Chip
became a staple of rolling election coverage,
EDITED BY
DAVID HELLIER
GOT A STORY? EMAIL
thecapitalist@cityam.com
The prices,
which average
around
£6,000 per
square foot
are the
highest paid
for residential
space
found himself in a sticky situation earlier this
week.
He was engaged in a conversation about
disgraced Labour MP Eric Illsley, who recently
pleaded guilty to three charges of false
accounting over his expense claims.
Under archaic parliamentary law an MP
cannot resign unless they are appointed to a
“royal office of profit” – a decorative title held
until another MP resigns. “I cannot believe
that Eric Illsley, a convicted thief, is to be
given a royal office of profit,” said Dilley.
“And not only a royal office of profit,
but the bailiff of the chiltern
hundreds! He’d nick everything!” Of
course, standing right behind Dilley
was none other that Illsley himself,
who sheepishly made himself scarce.
BAGEL MANIA
Anyone travelling through St Pancras this
afternoon will be greeted by defeated US
Presidential candidate Robert Burck per-
forming country and western songs wear-
ing only a pair of Y-fronts. The “Naked
Cowboy”, a New York street entertainer,
will be performing an “official bagel jin-
gle” – Ode to the Bagel – to promote a new
range at the New York Bakery. Look out!
ACKERMANN PAYS OUT
Josef Ackermann was in London yesterday
to celebrate Deutsche Bank’s victory as the
Bank of the Year at IFR’s 16th awards din-
ner at the Grosvenor House hotel.
Ackermann’s bank also won the now
customary auction to head up the inter-
active tombstone with a £500,000
donation to Save the Children.
The auction, compered by DJ
Johnnie Vaughan and Melanie
Sykes, raised a total of £1.4m.
Bank of America Merrill Lynch
chipped in with £125,000.
 8 News
It’s time for the City to stop ignoring Brussels
VIEW FROM CITY HALL
ANTHONY BROWNE
D
ID we not learn anything from
the great British fridge fiasco?
You remember those surreal
months, when TV bulletins lead
every night with the giant fridge
mountains swamping the country-
side, growing by the hour. And it was
all because Britain sent a junior offi-
cial into the Brussels lion’s den, and
his London bosses not only didn’t lis-
ten to him, they didn’t know who he
was. That poor junior official – if I
remember rightly his name was
Kevin – knew it would be a recipe for
chaos to ban the disposal of fridges
containing CFCs while Britain had not
a single facility to remove the chemi-
cals. But to the mandarins and minis-
ters in London, Brussels was “over
there” and so could safely be ignored.
So it was Britain at its most normal
useless when the AIFIM directive on
hedge funds was written by French
officials at the request of a Danish
socialist while Britain, which has an 80
per cent market share, was not aware
of what was happening. As a
European Commissioner said when
the Mayor and I met him, the previous
government had to be “dead with the
worms eating [its] flesh not to notice.”
He was palpably relieved to meet a sen-
ior British politician to engage with.
Now that Brussels is controlling the
regulation of our most important
industry, ignorance is not bliss, but
unaffordable. Although Britain is the
banking, securities, insurance and
occupational pensions capital of
Europe, no British person was appoint-
ed chair to the new European Banking
Authority, the European Securities
▲
Billion tonnes CO2
and Market Authority, or the
European Insurance and Occupational
Pensions Authority. The chairmen,
appointed last week, are Portuguese,
Italian and Dutch, and there is not a
single British representative on the
board of the EBA. City practitioners are
shocked.
The solution isn’t difficult. We have
the most people with financial servic-
es experience in the EU, and we should
be flooding the three new European
super regulators with staff (including
those from the FSA). According to fig-
ures from theCityUK, we have 12 per
cent of the EU population, but just five
per cent of all European Commission
officials – we need a programme to
BP forecasts
emissions rise
ENERGY
BY MARION DAKERS
CARBON emissions will continue to
rise over the next 20 years, with meas-
ures to reduce climate change out-
stripped by increased energy demand
from emerging economies, according
to analysis by BP.
The oil major predicted yesterday
that global demand for fuel is likely
to grow by nearly 40 per cent by 2030,
with 93 per cent of the growth com-
ing from non-OECD countries.
Non-OECD energy consumption
will be 68 per cent higher by 2030,
averaging 2.6 per cent per year
growth.
It expects non-fossil fuels, such as
nuclear, hydro-electricity and renew-
able sources to make up 18 per cent of
energy growth in the next 20 years,
but predicts fossil fuels will still make
up 64 per cent of the global increase.
Chief executive Bob Dudley said of
BP’s forecasts: “Our base case assumes
that countries continue to make
some progress on addressing climate
change, based on the current and
expected level of political commit-
ment. But overall, for me personally,
it is a wake-up call.”
ANALYSIS l World commercial energy use
18
Renewables*
15
Nuclear
12
9
0
1870
ANALYSIS l Global CO2 emissions from energy use
40
Non-OECD
30
OECD
20
10
0
1990
CITYA.M. 20 JANUARY 2011
double that. The government must
scan senior appointments coming up
over the next few years, and have a
strategy for getting British people in
place. We should put top people up for
the top jobs, not just any middle
ranker whose arm we can twist.
Having experience of Brussels should
be a prerequisite to promotion, rather
than Brussels being a career cul de sac.
And industry should play its part,
offering staff for secondment to
ensure we get the regulation it needs.
If we carry on ignoring Brussels, it isn’t
Brussels that will suffer. It is us. Just as
happened with the fridges.
Anthony Browne is an adviser to the
Mayor of London
BP, which last week announced an
exploration project in Arctic Russia,
has made public its annual Energy
Outlook for the first time this year.
It predicts modest growth for fuels
outside the control of the OPEC oil
cartel, mostly led by a large increase
in biofuels and experimental oil
sources such as the Canadian sand
deposits.
Coal, oil and gas will each make up
around 27 per cent of the market by
2030, BP said, taking over from oil’s
current solo dominance.
OECD oil demand peaked in 2005
and in 2030 is projected to be roughly
back at its level in 1990. Biofuels will
account for nine per cent of global
transport fuels.
“We are not as optimistic as others
about progress in reducing carbon
emissions. But that doesn’t mean we
oppose such progress,” said Dudley.
BP said world primary energy
demand growth will average 1.7 per
cent per year from 2010 to 2030,
decelerating slightly beyond 2020.
ExxonMobil is due to release its
long-term energy outlook in the com-
ing weeks, and is expected to paint a
similarly gloomy picture about cut-
ting global emissions.
Hydro Oil
Gas Coal
*Includes biofuels
Energy outlook 2030
1950 2030
Energy outlook 2030
2010 2030
 You’re busy. We’re busy.
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 10 News CITYA.M. 20 JANUARY 2011

State Street hit by

Award-winning
actress Helena
Bonham Carter
with fund manag-
er brother, Jupiter’s

restructuring costs
chief executive
Edward Bonham
Carter.

Picture: REX

Excluding special items, earnings

▲

FUND MANAGEMENT
STATE Street, one of the world’s largest
institutional investors, said quarterly
earnings dropped due to costs of repo-
sitioning its portfolio and cutting jobs.
The company, which also earns fees
for services like record-keeping to
mutual and hedge funds, said that net
income fell to $81m (£50m), or 16 cents
a share, from $498m, or $1 a share, a
year earlier.
rose to 87 cents a share from 71 cents,
beating analysts’ expectations by one
cent.
Revenue rose 9.6 per cent to $2.28bn.
Fee revenue increased 10 per cent to
$1.7bn, fuelled by a dramatic jump in
processing fees and servicing fees.
Assets under custody and adminis-
tration climbed 15 per cent to $21.5 tril-
lion. Assets under management rose
three per cent to $2.01trillion

Strong inflow
boosts assets
9pc at Jupiter
invest in mutual funds as an alterna-
▲
FUND MANAGEMENT
BY RICHARD PARTINGTON tive to traditional bank savings
accounts, due to the low Bank of
THE FUND management group run by England interest rate, according to ana-
Edward Bonham Carter, the brother of lysts.
actress Helena Bonham Carter, has Shore Capital analyst Danielle James
beaten analysts’ expectations for the said: “There have been relatively few
final quarter of last year. options outside of mutual funds for

LONDON Jupiter Fund Management saw its

assets under management (AUM) grow
investors, meaning the entire industry
is likely to do well.”

CITY TO
nine per cent to £24.1bn for the three However, she warned investors could
months to 31 December. return to high street savings accounts

STOCKHOLM
The firm experienced stronger than should the interest rate be lifted above
predicted net inflows of £772m across its current 0.5 per cent level.
its business lines during the period, “Once the interest rate starts getting

FROM £65 driven by inflows into mutual funds

and segregated mandates.
back to somewhere where investors
can get reasonable returns leaving cash

ONE WAY Analysts at Credit Suisse had forecast

a rise to £23.5bn, with net inflows of
£600m.
in bank accounts there will be less
impetus to place capital in funds.”

Bonham Carter, chief executive of ANALYSIS l Jupiter Fund Management

Jupiter, said: “Jupiter had a strong end p 305.00
to 2010. It was encouraging to see the 19 Jan
310
group maintain our track record of
continued net inflows, assisted by the
benefit of new product launches and
290
international distribution.”
Mutual funds contributed £529m in
net inflows for the fourth quarter,
boosted by the launch of two new 270
funds.
British consumers have flocked to 25 Oct 12 Nov 2 Dec 22 Dec 14 Jan

FSA sees fresh Swiss Wikileaks

senior departure banker is guilty
▲

REGULATION
THE Financial Services Authority’s (FSA)
head of supervision for UK life insurers
is leaving the regulatory agency, the lat-
est in a string of senior-staff departures.
Stuart King, who has been with the
regulator in a variety of roles since its
creation in 1998, is leaving to become
a managing director at regulatory-
consulting firm Promontory
Financial Group.
A series of top staff, including Jon
Pain, head of supervision and David
Strachan, the head of financial stabil-
ity, are also planning an exit after the
government’s decision to break up
the regulator last year.
BANKING
A SWISS banker who publicised pri-
vate client data on Wikileaks was
found guilty yesterday of breaching
strict banking secrecy and threatening
former colleagues, but was given only
a suspended fine.
Judge Sebastian Aeppli acquitted
Rudolf Elmer on charges he sought
$50,000 for returning client data to for-
mer employer Julius Baer and that he
made a bomb threat to the bank.
He was sentenced to a fine of 7,200
Swiss francs (£4,270) and suspended
for two years. The prosecution had
demanded eight months jail and a
fine of 2,000 Swiss francs.
CITYA.M. 20 JANUARY 2011
IMF head Dominique Strauss-Kahn has beefed up its inspections on big banks Picture: Rex
Europe to
share audit
info globally
▲
REGULATION
BY ALISON LOCK
MICHEL Barnier, the EU markets com-
missioner, stepped up efforts yester-
day to extend scrutiny of auditors
beyond the borders of the European
Union.
In a bid to ensure EU states access
to more information about the audits
done on major companies, the inter-
nal market and services commission-
er has added ten non-EU states,
including China, Switzerland and the
US, to a list of countries that will
cooperate with EU members on over-
sight of auditors. The move is
designed to tighten the net over audit
practices in the wake of the financial
crisis, in which financial institutions
and companies given a clean bill by
their auditors subsequently failed.
“With auditing now moving
beyond national borders, there is a
need for effective global auditor over-
sight,” the markets commissioner’s
office said.
Barnier said the decision was taken
against a backdrop of improvements
to the audit market.
“International cooperation on audi-
tor oversight is crucial to avoiding the
overburdening of audit firms and
duplicating supervisory work, and
above all, to promoting a high degree
of investor protection by ensuring
high quality audits,” he said.
The ten countries joining the 27 EU
states were selected because their
audit oversight systems are at a com-
parable level. These are Australia,
Canada, China, Croatia, Japan,
Singapore, South Africa, South Korea,
Switzerland and the US.
The commission has also identified
a further 20 states that are taking
steps to reach an equivalent level and
could be included in the information
sharing agreement in future. These
include Abu Dhabi, Egypt, India,
Russia and Thailand.
Weber is top choice for ECB Demand high for UK gilts
▲
PROFILE
BY ELIZABETH FOURNIER
THOUGH Jean-Claude Trichet does
not step down as ECB president until
October, the race has long been on to
replace him, with Germany’s Axel
Weber at the top of the pile.
Weber, a former economics
AXEL WEBER
News 11
Stress tests come early
Sweden, the Netherlands, Germany had improved their capital adequacy
▲
EUROZONE
and Luxembourg ahead of wider tests in the past two years but many still fell
BY HARRY BANKS by the EU to assess the health of short and the risk-adjusted capital
THE International Monetary Fund lenders. positions of banks was “generally a rat-
(IMF) will launch the first of its manda- The IMF move comes as a rating ing weakness”.
tory health checks on big banks this agency study found that more than 30 The EU has come under pressure
week under a beefed-up inspection of the world’s top banks have insuffi- after finding only a small capital
scheme following criticism of previous cient capital to withstand a big prob- shortfall among banks last year, just
tests. lem, including Credit Suisse, Bank of before spiralling problems at banks
The probes will start in Britain, to be America and Mizuho Financial. forced an international bailout of the
followed by IMF tests of banks in Standard & Poor’s said most banks Irish government.
EU amends
Hhme is Solvency II
guidelines
where the
▲
REGULATION
BY ALISON LOCK
heart is...
THE EU clarified the powers of its
new insurance and markets “super-
regulators” in proposals published
yesterday.
The commission is to change two
existing financial services directives
to clear the way for the European
Insurance and Occupational Pensions
Looking for a place of
Authority and the European
Securities and Markets Authority.
The amendments, set out in its
your own in 2011? rom
start f **
Omnibus II proposals, identify areas
where the regulators can propose
Prices new technical standards as they move
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towards the “single rule book” model
of pan-EU regulation. It also details
how to resolve disputes between
Let L&Q find your heart a member states’ national regulators.
“By giving the new supervisors a
part buy, part rent home in North, clearly defined mandate and bringing
South, East or West London. existing legislation in line with that
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It has also amended the Solvency II
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alternatively text HEART to 60123 For the first time, it has set a final
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PricewaterhouseCoopers insurance
Follow Us. Like Us. Watch Us. partner Charles Garnsworthy said it
was “unrealistic” to expect almost
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tional measures will allow insurers
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since 2004, has emerged as the fron- ceptions of the UK fiscal outlook
▲
UK ECONOMY
trunner ahead of Bank of Italy gover- and that for other large-scale bor-
nor Mario Draghi. BRITAIN received a flood of bids at a rowers such as Greece, Ireland and
As potential rivals yesterday sale of 25-year government bonds Portugal.
plumped for ECB executive posts, yesterday, after a sharp rise in infla- After a well-received £2.25bn auc-
Weber’s stock rose higher, with his tion spurred demand for good-value tion of 25-year gilts, British gilt
appointment seen as a boost to gilts that are less vulnerable to a rise futures rallied 15 ticks to test a ses-
German confidence in the Eurozone. in Bank of England interest rates. sion high. The sale of 4.25 per cent
Trichet’s successor is expected to be This healthy demand for British March 2036 gilts drew bids worth
professor and president of announced at around June, though government debt at a time of heavy 2.11 times the amount on offer, well
Germany’s Bundesbank no date has yet been set. public borrowing highlights the
sharp contrast between market per-
above the 1.62 cover achieved at the
last sale of this gilt in 2005.
CITYA.M. 20 JANUARY 2011
Sherborne Investors chairman Ian Brindle (left) and F&C Asset Management chairman Nick MacAndrew (right)
Sherborne
ups ante in
F&C pursuit
▲
ASSET MANAGEMENT
BY ALISON LOCK
F&C Asset Management’s rebel
shareholder Sherborne Investors
stepped up its attack on the current
board yesterday with a critique of its
strategy.
In a letter to shareholders,
Sherborne said it had invested in F&C
due to its persistently poor perform-
ance compared with peers and it
believed investor concerns over strate-
gy were the cause of its low valuation.
F&C chairman Nick MacAndrew
called the letter “a partial and flawed
critique of the past” and said
Sherborne had not offered an alterna-
tive strategy.
Sherborne’s move escalates its bid
to take control of F&C ahead of a
meeting on 3 February to decide
whether to replace MacAndrew and
director Brian Larcombe with
Sherborne representatives.
“We believe that F&C’s many
strengths have not been reflected in
the performance of its share price,”
the letter said.
Sherborne, which has built up a
17.6 per cent stake in F&C since
August, argued that the decisions to
buy REIT Asset Management in 2008
and Thames River Capital last year
saddled F&C with debt, diluted share-
holders’ interests and generated
income from volatile performance
TIME LINE | SHERBORNE’S STAKEBUILDING
● 17 August:
Sherborne Investors buys 5.2 per cent
stake in F&C for £15m. F&C’s shares rise
23 per cent.
● 18 August:
Sherborne raises stake to 9.7 per cent to
become F&C’s second-largest shareholder.
● 20 August:
Sherborne adds 0.5 per cent to its stake,
taking it to 10.2 per cent or 52m shares,
worth £32.9m.
● 26 August:
Sherborne increases stake to 11.3 per
cent, worth £36.2m.
● 31 August:
Sherborne raises stake to 14.6 per cent
● 16 December:
Sherborne calls an extraordinary general
News 13
MORE NEWS
ONLINE AT
www.cityam.com
@
Goodbye bottled
water, hello T6!
fees rather than steady management
fee income. Sherborne also criticised
F&C’s debt management, arguing
that a renegotiation of debt terms in
2009 caused a dividend cut.
“We believe that the company’s
financial policy…has caused reduc-
tions in shareholder value that were
avoidable,” it said.
MacAndrew said Sherborne had
“misunderstood the economics of
and rationale for the acquisitions...
both of which were overwhelmingly
supported by shareholders.”
He added Sherborne had not
addressed concerns that its three pro-
posed board members – Edward
Bramson, Ian Brindle and Derham
O’Neill – lacked the experience to run
the firm.
Numis analyst David McCann said
the letter left shareholders “still none
the wiser as to what Sherborne might
do differently if it were to get in.
ANALYSIS l F&C Asset Management
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● 20 December:
Sherborne cashes in further share
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F&C appeals for shareholders to vote
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● 14 January:
F&C publishes plan to restructure its
operations and cut £12m costs.
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● 3 February:
The from Strauss Water UK Ltd
EGM and vote on board to take place.
 14 Consumer News CITYA.M. 20 JANUARY 2011

ASOS surge driven ANALYST VIEWS: WHAT IS DRIVING THE ADVANCE OF ASOS IN A
TOUGH CONSUMER ENVIRONMENT? Interviews by John Dunne

by overseas sales PHILIP DORGAN | ALTIUM SECURITIES

the three months to 31 December. “ With the launch of the US website going well, ASOS has accelerated its growth, as expected and management has reinvested

”
margin gains in the offer, again, as expected. We are maintaining our ‘Hold’ recommendation. We are bullish that ASOS will hit its sales
target, but think that the short-term outlook is discounted by the shares for now.
▲

RETAIL
ASOS launched American, French
SALES at online fashion retailer ASOS and German websites in October 2010 NICK BUBB | ARDEN SIMON LLOYD | DTZ

“ “
soared by 59 per cent over the as well as a free global shipping offer
Christmas period – with its interna- in the run up to Christmas.
tional performance driving the com- Chief executive Nick Robertson The UK growth of ‘only’ 23 per cent is dis- Growth in the area of internet sales has
pany forward. said: “The weather knocked between appointing, given weak comparables [stock shortage accelerated in the last two to three years with online
Overseas sales jumped by 156 per two and five per cent off our UK sales a year ago] and it may well be that the snow disrupt- being the fastest growing area of retail sales during
cent while poor weather in the UK hit but internationally we have been ed Christmas orders and deliveries. International saw the last 12 months. This trend will have contributed
mind-blowing growth of 156 per cent. With full-year to the enhanced sales seen by many internet retailers

” ”
deliveries. incredibly strong.
The firm said UK retail sales “We have more websites to launch profit before tax to be only in line with expectations, over the holiday period.
increased 23 per cent to £56.3m, in this year and are very confident.” we still think ASOS is over-valued.

Kesa profit
NOW WITH AN
ENTERTAINMENT PACKAGE
squeezed by
WORTH £200.* Comet sales
range of €98 to €119m (£82m to
▲

RETAIL
BY JOHN DUNNE
ELECTRICALS retailer Kesa yesterday
warned that profits would be at the
lower end of expectations due to
weaker sales at its UK chain Comet.
£99.5m).
Chief executive Thierry Falque-
Pierroton said there were no plans to
spin off Comet or to switch the com-
pany’s listing to France, as had been
suggested by analysts.

50 MP3s
Total like-for-like sales for the peri-
od between 1 November and 18
January were down four per cent.
But Comet sales plummeted 7.3 per
cent as tough competition, lukewarm
consumer sentiment and poor weath-
er took its toll.
Kesa said that the pre-Christmas
snowfall in the UK and continental
He added: “We remain confident in
our strategy and committed to our
plans to implement the Darty con-
cept in all our markets and we have
in place a number of additional meas-
ures to improve revenue and reduce
costs.”
Matthew McEachran of Singer
Capital Markets said: “Trade did pick

15 Movies
Europe during its key trading period, up in the week after Christmas, once
knocked at least two per cent off the snow melted.”
sales.
The company also said that sales ANALYSIS l Kesa Electricals
Sex and the City 2 available now
from samsungmovies.com had “softened” since the VAT rise to p 136.00
20 per cent. 19 Jan
170
Kesa, which also runs market
leader Darty in France, said it would
respond to the challenges at Comet
160
by cutting costs, improving its web-

7Games
Buy a new Samsung site and refocusing stores on its most
profitable categories.
Galaxy Tab right now The retailer said full-year adjusted 150

and get £200 worth of profit before tax would be towards

the lower end of analysts’ forecasts 25 Oct 12 Nov 2 Dec 22 Dec 14 Jan
music, movies, games
and books. It’s the
best all in one device
Wetherspoon Character looks
5 eBooks even on the go.
And at just 7 inches
it’s compact enough
has happy Xmas to rival Lego
to fit in your pocket.
▲

LEISURE
PUB operator JD Wetherspoon said
yesterday sales grew in recent weeks
despite the snow but warned profit
Available at all major phone and electrical stores now margins were coming under pressure
from the increasing cost of food,
or visit www.samsung.com/uk/galaxytab drink and other bills.
Wetherspoon, which operates near-
ly 800 outlets, said like-for-like sales
increased three per cent in the 12
weeks to 16 January, up from 1.6 per
cent in the previous quarter.
*Terms and conditions apply. See samsung.com/uk/galaxytab for details © 2010 Samsung Electronics Co. Ltd. Google and Android are trademarks of Google, Inc. Sex and the City 2 © 2010 Warner Bros. Wetherspoon, which has bucked
Entertainment Inc. and Home Box Office, Inc. All Rights Reserved. © 2009 Gameloft. All Rights Reserved. All manufacturers, cars, motorbikes, names, brands and associated imagery featured in Asphalt 5 mobile
game are trademarks and/or copyrighted materials of their respective owners. © 2009 Gameloft. All rights reserved. Gameloft, the Gameloft logo are trademarks of Gameloft in the U.S. and/or other countries. the trend of declining sales and prof-
its across the pubs sector over the past
three years, said it was confident of a
reasonable performance in 2011.
RETAIL
CHARACTER Group is to launch its
own version of building bricks to
exploit some of its best-selling models
based on licences including Dr Who
and HM Armed Forces.
The new building blocks, which are
set to rival Lego, will be launched at
next week’s London Toy Fair.
The company will also launch Bob
the Builder and Squinkies ranges at
the fair.
Character – whose blocks are a dif-
ferent texture to Lego – said it expects
revenues for the six months to
February to be a third higher than
last year’s comparative first half.
CITYA.M. 20 JANUARY 2011 Consumer News 15

William Hill in
Credit fears
CITY VIEWS: DO YOU SHOP IN HMV AND WOULD YOU
MISS IT IF IT FOLDED? Interviews by Juliet Samuel

CRAIG MEDFORD | MH CARBON

IN ASSOCIATION WITH
lift from online
for HMV send “It’s just been wiped out. I don’t think there’s a
way for it to undercut. There are so many
other competitors like Tesco’s and Sainsbury.
betting profit

shares lower
It’s lost its market really.” LEISURE

▲
BOOKMAKER William Hill has said its
DANIEL FARIKULLAH | NOMURA annual operating profits are set to be
at the top end of forecasts.
“Naturally, it has to go, with technology taking control. It reported strong revenue growth
People are quite lazy and it’s easier and cheaper to sit back in the final three months of 2010, in
and buy online. It'll be interesting in 50 years to see part thanks to a big jump in online
▲

RETAIL lapsed, at least in part, due to supply business.

BY JOHN DUNNE
SHARES in HMV Group plunged yester-
day after the music and book retailer
confirmed some of its suppliers have
had levels of credit insurance cut.
A shadow has been cast over HMV
since it issued a profit warning earlier
this month with store closures ordered
in an attempt to cut costs.
The share price sank by 13 per cent in
early trading, before recovering to close
2.9 per cent lower at 25.5p as the com-
pany, which is in the middle of a turn-
around plan under chief executive
Simon Fox, confirmed that credit insur-
ers were reviewing their cover to the
problems. HMV, which took over 14
Zavvi stores when it went bust, has been
trying to revive its business with live
music venue tie-ups but has seen down-
loads devastate its CD and DVD busi-
ness.
Kate Calvert, Seymour Pierce retail
analyst, said HMV has time to head off a
supply crisis. “January is the time when
HMV is reducing stock rather than
building. It may become more of an
issue if the situation has not changed
by the autumn when HMV builds stock
ahead of Christmas,” she said.
ANALYSIS l HMV
p 25.50
19 Jan
what the retail high street looks like.” Web-related revenue grew by a
quarter compared with a year earlier,
MATTHEW BAILEY | BROOK STREET while retail revenue rose by eight per
cent despite the bad weather over the
“I’ve shopped online for a couple of years so it doesn't Christmas period.
The bookmaker said full-year oper-
bother me. They've not moved with the times. It's nice ating profits would be about £275m,
to be able to see what you're buying in front of you up from £258.6m in 2009.
but it’s cheaper online.” Chief executive Ralph Topping said:
“This is a strong performance and I
RateSetter.com-the new way in peer to peer finance am delighted that, in particular, our
online business and the gaming
www.RateSetter.com Customer Phoneline: 08442490115 machines in our shops continue to
see encouraging revenue growth dur-
HMV | HIGH STREET NIGHTMARE ing [the period].
“Our continual technological devel-
HMV’s insurance headaches and their opments in what is a fast-changing
JHWWKLQNLQJ
Issue 784 JHWWKLQNL

retailer. “Credit insurers are reviewing Thursday

27 November
2008 BUSINES
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industry have underpinned growth.”

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faced by retailer Woolwoths which even- Terrorists

FREE

group. Whilst this has resulted in the
reduction in the availability of credit
insurance to certain of the company’s
CLEARANCET
be closing its telephone business in
tually collapsed as it lost its cover. It in Mumbai
carnage the UK in February, having previously
35 plunged into administration in 2008, just said it would do so in the fourth quar-

V
INTERNATIO
BY JOHN KENCHIN NAL

a month after insurers abandoned it. The

GTON
Q Woolwor
suppliers, our business remains a core ter of 2010.
ARMED Islami
ths and people last sts killed
at least 84
MFI forced to capital Mumb night in India’s
go financial
administration into
used by Westerai, in attacks on
n investors. hotels
A group

only way it was able to secure stock was

Mujahdeen”calling itself the “Decca

channel to market for them,” said HMV. William Hill said in June last year,
attacks across were behind n
the luxury the city, the series of
Q 30,000 jobs hotels. Taj Mahal as well as in
and Triden
unde
threat; supermar r
Maharashtra t

25
Vilasrao Deshm chief
ukh said minister

through cash – a situation impossible to

kets “the situati

The problems besetting HMV are sim- it would be establishing a new tele-
last
launch price war trol and we on is still not undernight
more terrori are trying con-
to
hotels.” sts hiding flush out any
inside the
The death two
cials warne toll reached 84,
V

RETAIL

sustain.
d but

ilar to those which plagued phone betting operation offshore in

BY LORA COVENTR Up to 350 it could rise furthe offi-
Y by the attackpeople have been r.
WOOLWORT ers, who injure
guns and used machi d
administratoHS will call grenades.
The terrori ne
rs this morni in the
last-ditch
rescue ng the landm sts set fire to a
year old group talks to save after were seekinark Taj Mahal hotel of
wing

Woolworths and Zavvi which both col- 2 Dec Gibraltar.

the 99-

25 Oct
The retaile failed.

12 Nov 22 Dec 14 Jan

and Ameri g out those with and
Deloitte as r’s board will local reportcan passports, accordBritish
appoin
trator. Partnethe company’s admin t The Indian
s. ing to
r Neville Khan is-
ed to lead
the is expect- the buildin navy last night storme
Woolworths’process. bly involvi g but a siege ensued d
the UK has collapse is ng Wester , possi-
seen for severa the bigges ners.
reflects falling l years, t PICTURE: P9,
on the high consumer spendiand SPORT: P31
firm’s slow street as well ng
jobs are nowdecline. Around as the
will open at risk. 30,000
All the
expected today, but a thirdstores
to be shut
weeks. over the next are
few in

Picture: REX
In a double VAT to custom
furniture whammy In a furthe ers three
retaile for retaile r move, Tesco days early.
announced r rs, cut rescue is planne
istration, it was going into
MFI also 50 prices on 1,000 produ said it will d to save the
admin- per cent. cts Woolw
retail jobs putting a furthe which owns DSG Internby up to the compaorths’ holding compastore. was that
at r 1,000 ational,
The mounrisk. has alread Currys
y passed onand PC World, BBC, 2enterny’s joint venture with ny and it was still
tale of yesterd there. It’s
which was ting crisis in Woolworths’ the saving latter is in tain, will stay solven the to moder ay’s brand, a sad
which failed
nomic figureconfirmed by direretail, an attemp collaps . out for £100mtalks with
the BBC to t. The Stewart
nise,” said
s yesterday, eco- tion. ted govern e came despite of SevenJustin Urqhart-
a retail is triggering The ment interve the compa . Ardeshir Naghs buy it Management Investment
Sainsbury price war. Tesco, called in Department for Busine n- had put forwar ny’s bigges hineh,
t shareholder, Meanwhile,.
pass on theand John Lewis pledge Asda, includ Woolw
ing Barcla orths’ creditors,
ss compa da
ny earlier rescue plan for the store MFI strugg
2.5 percen went under ling furniture
tage point d to discuss a ys, and directo to this week. get a stay
cut Tuesda possible rs to andmeet shareholders He plans of
lords and execution from its
after failing
to
y night. recovery is in Londo
on action believed to be consid n today in from Kroll, land-
RETAIL CRIS But no tax-fun
ded gone . “It’s no surpri ering legal charge of the compa
IS : P2, 3 AND 5 INTE under. The se Woolies has proper ty. MCR
the furnit ure
ny
RVIEW: FIRST wonder of
Woolies administrato has been appoinstore’s
GROUP BOSS Philip Duffy r, and will be ted as
and Geoff led
MOIR LOCKHEAD: P19 Bouchier. by

>>>> >>>> > Certified Distribution

is 101,421 29/09/200
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(‘RBS’) is authorised and regulated in the UK by the Financial Ser vices Authority
y. RBS is an auth
authorised agent of The Royal Bank of Scotland N.V in cer tain jurisdictions.
 16 Economics
Inflation to slow Asian boom Stunted recovery ahead
▲
ASIA ECONOMY
BY HARRY BANKS
GROWTH is expected to cool across
Asia this year as governments tighten
monetary policy to tackle rising infla-
tion, according to a poll released yes-
terday.
Yet Asia’s rising economies will still
lead global growth in 2011, far out-
pacing rich world peers.
A global survey by Reuters of
around 500 economists showed
China again topping the economic
expansion charts for this year, even
though the double-digit growth of
this year is expected to drop to
Benefit claims
drop, yet jobs
market slows
▲
EMPLOYMENT
BY JULIAN HARRIS
UNEMPLOYMENT benefit claims fell
by 4,100 between November and
December to hit their lowest number
for 21 months, official data revealed
yesterday.
The claimant count dropped by
almost 10 per cent over the course of
last year, according to the Office of
National Statistics (ONS).
“This was its third monthly drop in
a row, despite the fact that snow
would have hampered job hunting,”
said Vicky Redwood of Capital
Economics.
However, the overall jobs market
stagnated or declined, according to
other data released by the ONS.
Total employment fell in the three
months to November, while unem-
ployment edged upwards, by 49,000.
The rise pushed the unemploy-
ment rate to 7.9 per cent, the same
rate as that measured earlier in the
year, in the three months to February.
In the summer unemployment was
predicted to average 8.1 per cent in
2010, according to the government’s
independent fiscal watchdog – but
as the economic situation improved,
the forecast was revised down to
Protectionist barriers to trade a main
risk to German growth, says ministry
▲
EUROPE ECONOMY
BY JULIAN HARRIS
GERMAN economic growth is expect-
ed to hit 2.3 per cent this year, official
forecasts said yesterday.
Germany’s economy ministry
increased its forecast by half a per-
centage point.
Yet while some economists think
growth will be close to last year’s 3.6
per cent expansion, the ministry low-
ered its forecasts for exports and
imports -- and said global trade,
around 9.3 per cent.
Indian growth, meanwhile, is pre-
dicted to accelerate to 8.5 per cent in
the fiscal year ending March 2012.
Both countries, however, are fight-
ing stubborn price inflation.
In China inflation is now tipped to
quicken to 4.3 per cent, a much faster
build-up of price pressures than econ-
omists had expected in October’s poll.
And inflation in India is now seen
at 8.8 per cent, up from 8.3 per cent
expected in the October poll.
The prospect of further tightening
is already spooking some foreign
investors who flocked to the region
last year, drawn by its robust growth
7.9 per cent.
The Office of Budget Responsibility
(OBR) forecast unemployment would
edge up slightly to eight per cent this
year, before falling as low as 6.1 per
cent by 2015.
“We expect private sector job cre-
ation to more than offset falling pub-
lic sector employment – just as it did
during the fiscal consolidation of the
1990s,” the OBR said.
Government sector employment
fell by 33,000 in the three months to
September, yet remained above six
million – some 211,000 higher than it
stood in September 2008.
Yesterday’s figures also reveal a
shift from full time to part time work.
Although both part time and full
time employment fell, “part time
workers now account for 27.3 per cent
of total employment, up from 25.7
per cent at the end of 2008,” said
Howard Archer of IHS Global Insight.
The number of people working
part time because they could not find
a full time job increased by 26,000,
the ONS said, totalling 1.16m – the
highest figure since comparable
records began in 1992.
For 16 to 24 year olds, unemploy-
ment jumped by a percentage point
to reach 20.3 per cent.
including protectionism, posed the
main risks to the outlook.
Growth, nonetheless, should still
be strong, they said.
“The German pick-up is extra large.
Now we have to make sure it is extra
long,” said economy minister Rainer
Bruederle. “The time of nerve wrack-
ing stop and go is over.”
The forecast follows another week
of strong economic data for the core
Eurozone state.
Confidence among German
investors soared to its highest rate
and higher returns.
Indonesian stocks have recoiled
after a sizzling 46 per cent gain in
2010. Indonesian price inflation has
surpassed four per cent.
“Later this year, Asian policymak-
ers are going to have to be much
more aggressive to get inflation
under control and the consequence
of that will be weaker growth,” said
Robert Subbaraman, Nomura’s Asia
chief economist.
Economists expect global econom-
ic growth to slow to 4.2 per cent this
year from around 4.7 per cent last
year, before picking up slightly to 4.3
per cent in 2012.
BANK’S GOAL IS NOT ALWAYS TO LOWER INFLATION, SAYS POSEN
New American house construction falls
to second lowest level in over 50 years
▲
US ECONOMY
HOMEBUILDING in the US recorded
its second lowest rate in over half a
century last year, according to data
released by the commerce depart-
ment yesterday.
New house starts totalled 587,600,
only a small improvement on
the 554,000 begun in 2009 – the
two worst years since records began
since July, according to survey results
published on Tuesday.
The Zew index rose to 15.4, from
4.3 in December, with half of all sur-
veyed investors expecting a Eurozone
interest rate hike within six months.
The week began with the
Bundesbank confirming “strong”
manufacturing orders towards the
end of last year.
However, the Bundesbank expects
overall economic growth to slow in
Germany this year, forecasting a two
per cent increase.
for Eurozone, says survey
▲
EUROZONE ECONOMY
RECOVERY in the Eurozone will be
sluggish this year, according to a
Reuters poll of economists.
A resurgent German will not be
sufficient to drag the single currency
area above quarter-on-quarter growth
of 0.3 to 0.4 per cent in the first half
of the year, and 0.5 per cent in each of
the second two quarters, the survey
said.
While the 17 country euro area
economy is expected to grow around
in 1959.
December saw a 4.3 per cent fall,
with new housing starts, since the
same time the previous year, stand-
ing at 529,000.
“Low construction activity for an
extended period is necessary to purge
excess supply from the housing mar-
ket,” commented ING’s Teunis
Brosens.
Weak demand in the US housing
NEWS | IN BRIEF
IEA: Liberalise for lower prices
The price of essential goods is more
important to levels of poverty than dif-
ferences in income levels, a leading think
tank said today. Governments’ obsession
with misleading poverty targets has led
to an ever increasing welfare budget that
simply imbeds dependence, the Institute
of Economic Affairs (IEA) said. Instead,
protectionist measures like the EU’s com-
mon agricultural policy should be
dropped along with excessive regulation,
lowering prices, it argues in the report.
More could be done to simplify the tax
system and incentivise the poor to enter
the jobs market, it found. “People
trapped in dependency have continued to
struggle as the price of many essential
goods such as housing has risen,” said
the author Kristian Niemietz.
CITYA.M. 20 JANUARY 2011
1.5 per cent this year and 1.7 per cent
in 2012, economists predict almost
twice those rates of growth in the US.
A Reuters poll of around 80 econo-
mists suggested the US economy will
expand by three per cent in 2011, up
from 2.7 per cent in a similar poll in
December.
The upgrade in forecasts was due to
surprisingly positive data, the unex-
pected payroll tax cut, and evidence
of increased houshold spending, said
economist Andrew Tilton of Goldman
Sachs.
CENTRAL banks
should not simply
look to lower infla-
tion, but rather
ensure price stabili-
ty, the Bank of
England’s Adam
Posen said last
night. “You need
inflation a little
above the zero
measure to keep
there being a lot of
lock-ups in the
economy,” he told a
meeting at Aston
University. Posen
has been pushing
for more quantita-
tive easing, despite
the Bank coming
under fire as infla-
tion has jumped to
3.7 per cent.
Picture: GETTY
market, as well as the excess supply,
suggest that new house construction
will remain sluggish in the coming
months.
“We therefore expect a very slow
and soft construction recovery,”
Brosens warned.
Financial markets had a muted
reaction to the figures, although gold
prices hit a session high following
their release.
Factory pay settlements edge up
Despite the boom in manufacturing seen
last year, wage growth remained stable
in the three months to December, it was
announced yesterday. Pay settlements
increased to 2.2 per cent from 2.1 per
cent in the three months to November,
manufacturers body EEF reported. One in
five settlements are still ending in a pay
freeze, reflecting the ongoing downward
pressure on wages, EEF said. “The key
now is whether the recent upsurge in
inflation results in significant upward
pressure on settlements,” said Lee
Hopley, chief economist at the EEF.
Polish interest rates nudged up
In a bid to tackle above target inflation,
the Polish National Bank increased inter-
est rates to 3.75 per cent yesterday.
CITYA.M. 20 JANUARY 2011 News 17

Jeremy Hunt lays out his vision

Autonomy wins big Japan deal for local TV network in the UK
TECHNOLOGY clients in what it described as a “sig- In October the firm said it would it
▲

BY STEVE DINNEEN nificant deal,” also involving the would cut its full-year revenue guid- light to strip back or even axe its cost-

CAMBRIDGE-BASED technology firm
Autonomy yesterday announced it
has entered into its largest ever
licencing agreement in Japan.
The deal, involving its Intelligent
Data Operating Layer (Idol) video soft-
ware, is said to be worth “seven fig-
ures” but the firm declined to reveal
the exact value.
The FTSE 100 company also said it
has added North American super-
market group Safeway to its list of
licensing of Idol.
Autonomy has seen its shares fall
from £19.75 in June to £14.24 yester-
day, after a number of analysts
turned bearish on the stock.
Autonomy founder and
chief executive Mike
Lynch has seen his firm’s
stock slide amid weaker
than expected demand
▲
ance by about three per cent after
weaker-than-expected demand, send-
ing its shares down 16 per cent.
The firm’s stock dropped a fur-
ther 3.35 per cent in trading yester-
day.
Idol is a “smart” program that is
able to analyse and index video con-
tent, allowing users to, for example,
easily search for specific phrases or
incidents in long video files.
The group will release its fourth
quarter results next month.
MEDIA
CULTURE secretary Jeremy Hunt yes-
terday laid out his plans to introduce
a network of local TV stations in the
UK.
The radical shake-up will see private
firms bid for a new channel that will
broadcast local news for several hours
a day, alongside a national schedule. It
will be funded with advertising and
likely some licence-fee cash.
The move could be good news for
ITV, which could be given the green
ly regional news programming.
Hunt says he will ensure the local
station – dubbed channel 6 – is given a
prominent position in electronic pro-
gramme guides.
He said: “For consumers, what this
will mean is a new channel dedicated
to the provision of local news and con-
tent – one that will sit alongside other
public service broadcasters, offering a
new voice for local communities, with
local perspectives that are directly rel-
evant to them.”

Nintendo
Pearson hikes BEST OF THE BROKERS
11.5
ANALYSIS l Nokia
NOK 10.25
19 Jan
NOKIA
Standard & Poor’s Equity Research has
moved the mobile maker from “strong buy” shows off
profit outlook 10.5

9.5
to “hold” and downgraded the target price
to €8 from €9 as it feels its board has limit-
ed strategy options against competitors
such as Apple’s iPhone and Google’s
Android. The broker says Nokia’s operating
new 3DS
for 2010 again systems lack exciting apps and it should
TECHNOLOGY

▲
25 Oct 12 Nov 3 Dec 23 Dec 13 Jan invest less in developing the platforms.
BY STEVE DINNEEN
NINTENDO yesterday announced it
ANALYSIS l Old Mutual OLD MUTUAL will release its much anticipated 3DS
140 p
127.30 Goldman Sachs rates the savings and in Europe on March 25.
PUBLISHING ment, Pearson said . 19 Jan investment group a “buy” with a 162p tar- The handheld console will feature
▲

BY STEVE DINNEEN
PEARSON continued its blistering run
of form yesterday, raising its 2010
profit forecast for the second time in
three months.
The group, which owns Penguin
and the Financial Times, said it now
expected to report operating profit
for 2010 of around £850m, an
increase of around 20 per cent.
The firm says its improved outlook
was driven by its investments in edu-
cation, digital products and emerg-
ing markets.
Pearson said its growth came
across the board, with education per-
forming strongly, the Financial Times
division set to report “substantial
profit growth” and Penguin Books
eyeing record results after a strong
Christmas.
Its North American education
business also achieved market share
gains following its investment in digi-
tal products, setting it up for good
Shares in the group closed up 4.47
per cent to an eight month high of
£10.51 after the upgrade – its third for
the year.
Chief executive Marjorie Scardino
said: “For the third successive year,
our growth is vigorous even though
market conditions have been
anaemic.
“That confirms the soundness of
our strategy and the increasing
strength of our market positions. We
are on the right road and set out on
2011 with confidence that we will
have another good year.”
Earlier this week the firm
announced it has acquired a majority
stake in Indian online education busi-
ness TutorVista.
Pearson chief execu-
tive Marjorie Scardino
said the results set her
firm up for a strong
performance in 2011
135 one 3D screen and one touch-screen,
get price as it offers new opportunity fol-
as well as a motion sensor, a gyro sen-
130 lowing a strategic shift back towards sor and the ability to take 3D photo-
insurance and is now undervalued. It offers graphs.
125
inexpensive exposure to South Africa, has It will also allow users to download
120 virtually no European sovereign debt expo- games from a platform similar to
Apple’s App Store, cashing in on the
sure and the impending sale of its banking trend for classic games, and play
25 Oct 12 Nov 2 Dec 22 Dec 14 Jan arm Nedbank should clarify its market games wirelessly against friends.
Nintendo, which flew Jonathan
Ross over for the console’s launch in
ANALYSIS l Tesco 403.75 TESCO Amsterdam, did not release pricing
440 p 19 Jan Evolution Securities rates Tesco a “sell” as information but the unit has gone on
pre-order at HMV for £229.99.
its performance is deteriorating and it is The Japanese firm behind consoles
430 losing strategic position. The broker including the Wii and the N64 had
believes it should initiate a hefty price war planned to release the 3DS before
420 when new chief executive Philip Clarke Christmas but was forced to push
takes over, to reposition itself in the market the date back after development
410 delays.
and end the current store expansion drive As a result Nintendo was forced to
in the sector. Tesco is likely to win a price cut its earnings forecast for the year
25 Oct 12 Nov 2 Dec 22 Dec 14 Jan war and should be the first mover, it says. by a third. The company trimmed its
projection for overall DS sales for the
year to 23.5m units from 30m and
To appear in Best of the Brokers email your research to notes@cityam.com lowered its estimate for Wii consoles

@
sales growth and margin improve- to 17.5m machines from 18m.

Land Secs says demand from

blue chips will hold up in 2011
PROPERTY large corporates to remain steady.” soon be in a position to start a further
▲

BY HARRY BANKS
BRITAIN’S largest real estate invest-
ment trust Land Securities yesterday
said it expected demand from blue-
chip tenants to hold up in 2011.
Chief executive Francis Salway said
the firm’s plans were “bearing fruit”
as he updated the market on trading.
“We expect a wider range of buying
opportunities in 2011, although cur-
rent flows of capital into the sector
mean that bidding may remain com-
petitive,”he added.
“The first quarter of 2011 is likely to
see mixed news flow around the con-
sumer and the economy, but we
expect occupational demand from
Salway pointed to City shopping retail development at the Atlas Site in
mall One New Change as an indicator Glasgow,” Salway said.
of the firm’s success. He said that In November, Land Securities post-
development was commanding rents ed a 6.7 per cent rise in first-half net
in excess of £50 per square foot, a £10 asset value.
increase on what the firm could have
expected in 2009. ANALYSIS l Land securities
One New Change has let 51 per 720 p 694.50
cent of its units, with a further 20 per 19 Jan
cent in the hands of solicitors, sug-
gesting a tenancy agreement is near.
That means the building is practically 680
80 per cent let.
Meanwhile, Land Securities said it
planned to start work on a retail
MORE NEWS
development in Scotland due to
640 ONLINE
growing demand.
25 Oct 2 Dec
www.cityam.com
“It is our expectation that we will 12 Nov 22 Dec 14 Jan
 18 News CITYA.M. 20 JANUARY 2011

AIG picks banks for share sale Forte to expand in Africa

arrangers on AIG’s $4.3bn (£2.7bn) expected to make up for the lost rev-
through £9m share offer
▲

FINANCIAL SERVICES
bank credit lines, while Goldman and enue with the prestige of managing a
BY HARRY BANKS AIG have a long-standing relation- marquee deal and the chance at

AMERICAN International Group (AIG)
has chosen Bank of America,
Deutsche Bank, Goldman Sachs and
JPMorgan Chase to manage the sale
of the government’s 92 per cent stake
in the insurer, according to reports.
AIG and the government held a
“bake off” in New York last Thursday,
hosting chief executives and bankers
from 10 of the world’s largest firms to
pitch for the right to manage the
deal.
JPMorgan and Bank of America
were two of the three joint lead
ship. The Deutsche Bank connection
is less clear, although AIG is expected
to pitch investors aggressively for a
large, global shareholder base.
The winning banks are expected to
split a fee that is less than the 75 basis
points of the offering value the gov-
ernment paid last year for the initial
public offering (IPO) of General
Motors. Reports say the fee could be
closer to 50 basis points.
That is significantly less than the
usual fee for a secondary offering of
this size, although the banks are
future AIG business.
AIG’s selection of banks to manage
its share sale left out Citigroup and
Morgan Stanley. Citigroup has been a
restructuring adviser for AIG and was
also one of the joint lead arrangers of
a $4.3bn bank credit lines to the
insurer. Morgan Stanley has advised
the government since the insurer’s
near collapse in September 2008.
But both banks are likely to be
among the four to eight joint
bookrunners to be brought in closer to
the offering, a source said yesterday.
▲
MINING
URANIUM company Forte Energy is
planning to raise A$15m (£9.35m) by
offering 120m shares to new and
existing shareholders. The offer
price will be 12.5 cents per share, a
discount of 10.7 per cent to its clos-
ing price on the Australian Stock
Exchange on Friday.
Allowing for expenses, the net pro-
ceeds of the placing are expected to
be A$14.7m. The money raised will
be used to advance the company’s
uranium projects in West Africa,
including an ongoing resource
drilling campaign in Mauritania and
a feasibility study in Guinea.
Forte said it had received commit-
ments from institutional investors
in the UK, North America, Asia and
Australasia, with director Mark
Reilly commenting that: “We are
very pleased to have received such a
high level of support from new and
existing institutional shareholders
for this capital raising, which was
significantly oversubscribed.”

Nestlé in $1bn
SWATCH CELEBRATES RECORD SALES NEWS | IN BRIEF
Insurers hit by climate change
Insurers are struggling to assess the
risks from climate change, industry

push to up its officials say, with the floods in

Australia and Brazil highlighting the
potential losses from greater extremes
of weather. Overall losses from weath-
er-related natural catastrophes rose by
a factor of three in the period 1980-

African focus 2009, taking inflation into account,

while insured losses from such events
increased by a factor of about four
during the same period. Total insured
losses from natural disasters in 2010
were $37bn (£23.1bn).

Chinese-built railroad linking the ASML up on smartphone sales

▲

CONSUMER
BY HARRY BANKS
NESTLÉ, the world’s biggest food
group, will invest about 1bn Egyptian
pounds (£107.5m) in Egypt over the
next three years in a push to shift its
focus to emerging markets, an execu-
tive said.
The maker of KitKat chocolate bars
and Maggi soups wants at least 40 to
45 per cent of its business to come
from markets like Brazil, China,
Ghana and Vietnam within 10 years,
up from about 30 per cent now, exec-
utive vice president Frits van Dijk
said.
“In 2009, we saw double-digit
organic growth (in emerging market
top line), and this trend will continue.
In emerging markets we will have
strong growth,” said van Dijk, who is
also zone director for Asia, Oceania,
Africa and the Middle East.
Overall, Nestlé is planning to invest
$1bn (£625.6m) in Africa over the
next two years and open six new fac-
tories on the continent by 2012,
including one in Algeria and another
in the Democratic Republic of Congo.
One factory is planned to open in
Mozambique to take advantage of a
country’s coast to Zambia, van Dijk
said.
“We are seeing time and again
where infrastructure starts to devel-
op, that’s where the hinterland is
being opened up and you see a lot of
trading, and therefore disposable
income becomes available,” he said.
He said Nestlé sales were flourish-
ing in countries including Vietnam,
Indonesia, Chile, Columbia and
Mexico, alongside Brazil, India and
China.
Nestlé will invest £450m in Egypt
this year and another £500m over the
following two years, compared with
about £1bn over the last decade, van
Dijk said.
ANALYSIS l Nestle 52.65
Sfr 19 Jan
56
55
54
53
52
25 Oct 15 Nov 6 Dec 27 Dec 17 Jan
Profits at Dutch electronic chip-mak-
ing equipment group ASML Holding hit
a record €1.02bn (£843m) last year,
with sales driven by strong demand
for iPhones and other smartphones,
tablet computers and digital cameras.
ASML made a net profit of €1.022bn
in 2010 on net sales of €4.5bn, and
predicted sales in 2011 could rise to
more than €5bn. In 2009 it had sales
of just €1.6bn and made a net loss of
€151m.
Accor raises profit goal again
Europe’s largest hotel group, Accor,
raised its 2010 profit goal again yester-
day as fourth-quarter sales slightly beat
expectations amid a global recovery in
demand for hotel rooms. Accor, the
fourth-largest hotel group behind the
InterContinental, Marriott and Starwood
Hotels, said occupancy rates improved in
the last quarter while the recovery in
average room rates continued in most
countries. Accor said it now expected
earnings before interest and tax of
SWATCH GROUP, the world’s largest watchmaker, gave an upbeat outlook for 2011 as it around €440m (£371m) instead of the
expects strong demand for its watches to offset the impact of the soaring Swiss franc. The previous target of €400-€420. Finance
group, best known for its colourful plastic Swatch watches, notched up sales of 6.4bn chief Sophie Stabile said that the trend
francs (£4.18bn) in 2010 in another record year, as consumers in Asia, Central Europe for bookings at the start of 2011 was
and the Middle East bought its luxury brands. Picture: GETTY “good” but she remained cautious.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Steve Dinneen in association with

Alvarez & Marshal
Alvarez & Marsal, the global professional serv-
ices firm, is expanding its European real estate
advisory business in Europe with the appoint-
ment of London-based directors, Patrick
Anderson and Caspar Vredenbregt. Anderson
and Vredenbregt both have over 12 years of
experience in real estate development, invest-
ment and finance. Prior to joining A&M,
Anderson was director of international invest-
ment and development for London & regional.
KPMG of infrastructure, building and construc-
KPMG has announced the appointment tion. Threlfall succeeds Fiona
of Richard Threlfall as its new UK head McDermott who will lead KPMG’s busi-
ness modelling services.
Threlfall has over 15 years experi-
ence in the financing and structuring of
infrastructure projects. Before joining
KPMG, Threlfall was at Citigroup, and
before that was employed as a civil ser-
vant at the UK Department for
Transport where he held positions in
the road, rail and aviation directorates.
Between 1996 and 1998 he was pri-
vate secretary to the secretary of state
for transport and the deputy Prime
Minister.
ICMA
The International Capital Market
Association (ICMA), which represents
capital market participants globally,
yesterday announced that John
Serocold has joined its regulatory policy
and market practice team to lead
ICMA’s work on secondary market
practice.
As the senior adviser with responsi-
bility for ICMA’s work in the secondary
cross-border market for international
debt securities, Serocold will play a key
role in co-ordinating the response of
member firms to current consultations
on the review of the markets in finan-
cial instruments directive (MiFID) and
other European regulatory reform
affecting the market. He has over 10
years experience of financial trade
association work, covering market
structure, commercial and regulatory
issues.
Barclays Corporate
Barclays Corporate has appointed Dan
Broome as a relationship director with-
in its insurance team. Broome joins
from Lloyds TSB Corporate Markets,
where he spent two years covering the
insurance sector. Broome’s core focus
has been the non-life insurance market
and he has significant experience of
high-profile financing and banking
transactions in the London and Lloyd's
markets, within both the underwriting
and broking communities.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com
 Business Features
19

| MBAs

Diversity on MBA
courses means that
everyone’s a winner
The more nationalities the better for your
contacts book, writes Jeremy Hazlehurst

D
IVERSITY is important for MBAs, not
just because a class made up of peo-
ple from varied backgrounds makes
for a better learning experience but
because it improves your prospects after-
wards. For many MBAs the most valuable
thing is a global network of contacts, and
the more diverse, the better. Schools have
been aware of this for years but as business
gets ever more global they are increasingly
working to bring in people from places
where MBAs are in short supply.
ESMT, the German business school, is
leading the way and has recently
announced three €58,000 Kofi Annan
Fellowships each year, “for an emerging
leader from a developing country” to study
for a one-year full-time MBA in Berlin. The
school also has a full-tuition scholarship
funded by daily newspaper Tagesspiegel
for a German applicant who is a “first or
second generation immigrant”, and others
for students from Central and Eastern
Europe, Africa, the Middle East, and Asia.
The University of Melbourne has a schol-
arship for Indigenous Australians, while
ESADE, in Spain, has scholarships for stu-
dents from Mexico and Brazil, Central
Europe and Scandinavia. HEC in Paris has
ones for Brazilian, Indian and Senegalese
students, and the “Fondation Rainbow
Bridge Scholarships for women from Asian
or African countries affected by natural
disasters, drought or famine”.
At Spanish school IE there are scholar-
ships for students from the Middle East,
Africa and emerging economies. Lisa
Bevill, director of admissions, full-time pro-
grams, says: “Students learn from each
other just as much as they learn from our
faculty so it’s important that the class-
room includes individuals with a wide
range of backgrounds and experiences
from all over the world.” On the
International MBA there are 75 nationali-
ties, and 90 per cent are non-Spanish.
Irina Schneider-Maunoury is senior
manager of MBA financing at INSEAD,
which has scholarships for women from
Nepal, Uganda, Palestine, Turkey and the
Middle East and another for those from
Ghana, Nigeria, Togo and Benin, and she
points out that there are alumni associa-
Diversity is good tions in 42 countries, which gives students
for everybody a massive global address book.
“Many people from developing nations
Picture: GETTY start their own businesses,” she says.
“Three to 4 per cent of students do so
straight afterwards and many others 10, 15
or 20 years after graduating.” The strong
ties that are forged on an MBA course
mean that many students end up as busi-
ness partners.
Schools offer scholarships because it’s
the right thing to do, but as so often what’s
good is also good for business.

That’s the thing about

money: you can never take
people out of the equation.
Master of Finance (MFin)
University of Cambridge
Academically rigorous and commercially relevant, the Master of Finance offers an
opportunity to build on an outstanding professional track record through access to
the University’s excellent teaching faculty and experienced finance practitioners.
One of the leading post-experience programmes of its kind in the world, this
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 20 Business Features | MBAs
Rankings are not
the best way to
choose your MBA
Schools love to top
the lists, but they tell
us little we didn’t
already know, writes
Jeremy Hazlehurst
W
HICH is the best MBA course in
the world? According to the
FT’s rankings it’s the one at
London Business School, fol-
lowed by those at Wharton, Harvard and
Stanford. Argument over? Not quite. If
you had instead chosen the Economist’s
list, you would be under the impression
that Booth School of Business at the
University of Chicago is number one, fol-
lowed by Tuck and Haas.
The harder you look at MBA rankings
the less they make sense. Despite its top
ranking in the Economist, Chicago
Booth is just 10th in the FT. LBS tops the
FT rankings, but is a lowly 19th in the
Economist. INSEAD is 23rd in the
Economist but 5th in the FT. Haas, third
in the Economist, is 28th in the FT. Only
Harvard, Booth, Stanford and Wharton
make it into both top 10s.
Look at the BusinessWeek list and the
confusion deepens. It ranks US and non-
US schools separately, leaving us to won-
der whether Harvard, second on the US
list, is better than Queen’s in Kingston,
Canada, which takes the same place on
the non-US list.
And then there’s the Forbes ranking,
in which Stanford comes out as top US
school while INSEAD, IMD and IE are its
top MBAs outside America. Indeed,
INSEAD is the top non-US MBA for both
Forbes and BusinessWeek – but in the
Economist is ninth. Six schools can justi-
fiably claim to be Europe’s best.
Also interesting are schools’ moves up
and down the rankings. Spanish school
IESE dropped from first in the Economist
in 2009 to fifth a year later. In the same
A lack of funds doesn’t have to scupper your business education
SUSAN ROTH
S
OME of the most common ques-
tions I am asked by prospective stu-
dents are about how to pay for
their post-graduate degrees. With
year Chinese school Ceibs dropped 14
places in the FT, from 8th to 22nd.
Boston College went up 42 places.
Belgian school Vlerick Leuven placed
10th in the Economist in 2008, only to
drop 37 places the next year.
For most people in Europe the FT’s
ranking is taken most seriously – and the
release of the 2011 list on 31 January is
one of the biggest events of the MBA
year. But how seriously should we take
it? How useful are its numbers? The first
criterion it uses is graduates’ salary. But
as an indicator of quality, that is a blunt
tool to say the least. Salary is dependent
on the sectors that graduates go into,
rather than their quality – those who go
into financial services earn more than
entrepreneurs who may well take a pay
cut in order to earn more later. Those
graduating in financial services-heavy
parts of the world surely have more earn-
ing power than others. It’s no shock that
London and East Coast schools rank so
highly.
Salary increase is the second major
measure. Young MBAs who were earning
little, or who come straight out of an
undergraduate degree, will have a Everybody wants to
greater increase than more experienced get to the top
people. But who would you rather have
on your course? Many MBAs want to Picture: GETTY
change careers, and might well be will-
ing to take a pay-cut to get a foothold in
a new industry.
Thirdly, the FT looks at whether gradu-
ates were employed three months after
graduation. This also depends on sectors,
location, and level of experience; high-
fliers might not walk into the first job
they are offered. Also, it tells you nothing
about long-term success.
METHODOLOGY AND MADNESS
To understand the lists, you have to
understand the methodologies they use
(see box above right). Two things leap out
at you. Firstly, the data is based on infor-
mation given by students and schools –
in the Economist’s case, 80 per cent
comes from schools – perhaps not the
most objective of sources. As one recent
the cost of education coming under
scrutiny more than ever, it is entirely
reasonable that students are concerned
they are getting value for money.
What you do need to keep in perspec-
tive when weighing up the cost of either
an MBA or a specialist Masters (MSc)
degree is where that qualification can
take you. For example, independent sta-
tistics show that MBA students report
around a 100 per cent increase in their
salaries three years after graduation.
Prior to the financial crisis it was com-
mon for many Executive MBA and part-
time MSc students to be either fully or
partially sponsored by their own compa-
ny. In this time of austerity many profes-
sionals are finding this kind of support
from their employers harder to come by
and are having to self fund their educa-
tion.
All of the top business schools support
their students by providing payment
MBA says, students have a “vested inter-
est” to be nice about their schools;
wouldn’t you rather have an MBA from
the fourth best school than the 14th?
Secondly, there is the time-lag. Several
lists use data from graduates from a
number of years to help flatten out
spikes and troughs, and they also wait
until the graduates have been out of
schools three years. The FT’s 2011 list will
have information from those who gradu-
ated in 2005-7, while the current Forbes
list has information from MBAs who
graduated in 2004. How relevant is that
to those taking an MBA in 2012?
Looking at those who graduated
longer ago also boosts the “earnings” col-
umn – they are less impressive if you
know that some of the data is from those
who graduated six years ago. And again,
this number tells you nothing about
long-term performance.
So how seriously should we take the
lists? Pat Harker, dean of Wharton, said
plans where they can pay their fees in
instalments and at Cass we can also pro-
vide advice about securing loans. For
those students who may not have the
spare cash lying around to invest up
front in course fees, there are a variety of
payment options and scholarships
offered by universities and business
schools to help you shoulder the finan-
cial burden.
Each school has a variety of different
full and partial scholarships available for
MBA and MSc students which can be spe-
cific to the course being studied or the
nationality of the applicant.
Sir Stelios Haji-Ioannou sponsors
scholarships for 10 Cass students and a
further 10 at LSE each year. Corporate
partners of schools also often provide
scholarships and awards to students.
One such partner of Cass is Santander
which is a significant supporter of edu-
cation generally, funding scholarships
CITYA.M. 20 JANUARY 2011
in 2004 that “there is a very strong con-
sensus among parties (alumni, faculty
and staff of other institutions) I’ve con-
sulted, that the ranking methodologies
are severely flawed.” And that wasn’t
sour grapes – Wharton regularly gets top
10 rankings.
London business school Cass’s line is
that “business school rankings are one
important indicator of quality” but are
“composed of an extremely large amount
of disparate information and should be
read carefully by prospective students.”
Ross Geraghty, whose TopMBA website
has a ranking based entirely on
recruiters’ perceptions of MBAs, calls
rankings a “necessary evil”.
Officially, schools always say that they
should be taken with a pinch of salt but
schools know that a high ranking looks
great in the marketing material and
they are not shy of using it in their
brochures for years to come. One person
who works in the MBA industry says that
and educational initiatives in over 45 UK
schools and universities under the ban-
ner of Santander Universities.
Meanwhile, international asset man-
ager Threadneedle has recently teamed
up with Cass and will shortly announce
an award for students wanting to study
an MSc in Investment Management. In
line with Threadneedle’s “out-think, out-
perform” philosophy, the award will be
decided via an international essay com-
petition for students from Europe,
Middle East and Africa, and Asia Pacific.
If you do consider finance a barrier to
your studies, be sure to use all of the
resources available to you and don’t be
afraid to ask your university or business
school about how they can help you.
Susan Roth is the Head of Internationalisation
at Cass Business School, City University
London. Visit www.cass.city.ac.uk for more
information about what scholarships and
funding is available to prospective students.
CITYA.M. 20 JANUARY 2011 Business Features | MBAs 21

UPS AND DOWNS | METHODOLOGIES

Schools and graduates provide the data for the
Financial Times list, but to take part students have to
have graduated three years previously. So the 2011 list
will include data from graduates of the classes of
2005-7.
The three main pieces of data are 1) alumni salaries and
career development; 2) the diversity and international
reach of the business school and its MBA programme;
and 3) the research capabilities of each school. These
are broken down into 20 criteria, eight from graduate
information and 12 from the schools. Exactly how this
all gets brewed together to produce a ranking is
unclear, but a whopping 40 per cent of the weighting
for the final ranking comes from the salaries. On the
other hand, this is probably a good reflection of MBA
students’ priorities.
The Economist list is the oddest. Alumni ratings make
up 20 per cent of the total ranking, while 80 per cent is
based on data provided by schools. The scores are
weighted 35 per cent for “career opportunities”; 35 per
cent for “personal development/educational experi-
ence”; 20 per cent “earning potential”; and 10 per cent
“networking potential”. Why they are weighted this way
is unclear, but there is a tool on the website that allows
you to change the weightings, which shows that small
tweaks can have huge effects.
The simplest MBA ranking list is the one published by
Forbes, which looks at ROI – the increase in salary
reported by MBA graduates. No information is provided
by schools. On the minus side, it’s very US-centric.
BusinessWeek uses data from both graduates and
recruiters who have employed them. It recently intro-
duced an “intellectual capital measurement”, simply
looking at how many papers faculty have published in
20 leading journals and this makes up 10 per cent of
the score. This has led to stability, at least in the num-
ber one spot – in 12 lists over 22 years only Wharton,
Booth and Kellogg have topped the list. It’s very
American, though, and only has 18 schools in its non-US
list.

deans can be guaranteed to “crack open
the champagne” if their ranking goes
up, and bang heads together when it
goes down.
TAKING IT SERIOUSLY
Another insider says that “how well you
do in the lists is entirely a function of
how seriously you take them”. He says
that the biggest, richest schools have
people whose sole job is to get students
to respond positively to the rankings
questionnaires. Smaller schools just
don’t have the manpower for that.
There is also a good deal of schmoozing
of graduates. “They will invite graduates
to dinners and ply them with booze,” says
an MBA graduate from a London school.
“They say: ‘You are going to be sent some
forms, and this is how you should fill
them in.’” Others mutter about “massag-
ing” of figures. The Economist looks at the
gender balance of courses, giving a better
score to those with more women. Would
some schools aim to accept more women,
then? “Absolutely,” says one person who
works for a top business school. He insists
that a school would never recruit sub-stan-
dard students – that would damage its
reputation – but among equals, some are
more helpful than others.
The reasons schools do this are not alto-
gether mercenary, of course. A high rank-
ing means good students, which improves
the quality of the education. Highly
ranked schools, in any list, are good.
But it’s an open question what rank-
ings actually teach us. An industry insid-
er says that a few years ago when one
particular school topped a list “every-
body thought it was a joke.” In other
words, people already know what the
best schools are without the rankings.
Which makes you wonder: if we all know
the answer, what’s the point of asking
the question?

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rd a y 5 t h Febru hance to
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 Wealth Management
22 CITYA.M. 20 JANUARY 2011

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 328.50 -3.50 340 250 Colt Telecom 144.50 -0.50 145 109 John Wood Group 531 -13 581.50 293 RSA Insurance Grp 134.75 -1 136.50 114.75
3i Infrastructure 116.25 -0.25 125.25 101 Compass Group 562 -14 594 425 Johnson Matthey 1952 -33 2100 1446 SABMiller 2126 -83 2306 1650
A.B. Foods 1115 -1 1182 873.50 Cookson Group 633.50 -7.50 687.50 367.50 Jupiter Fund Man 305 -2.50 314 180.25 Sage Group 283.50 -3.50 289 222
Aberdeen Asset.Man. 225 2 225 112.75 Croda International 1578 -24 1625 751 Kazakhmys 1622 -43 1671 965 Sainsbury (J) 380.75 -4.25 395 313
Admiral Group 1619 -1 1693 1114 CSR 413.50 -2.50 505 281 Kenmare Res. 32 0 35 9.25 Schroders 1833 -18 1922 1116
Aegis Group 143.50 -1.50 145.50 103.50 Daily Mail & Gen 576 -6.50 590 432.50 Kingfisher 269.75 -1.50 271.25 198.50 Schroders NV 1418 -25 1508 929.50
Afren 156 0 161.75 79 DAVIS SERVICE 439.50 -10.50 450 360.25 Ladbrokes 135.25 3.25 162.75 122.75 Scot.& Sth. Energy 1206 -7 1258 1010
African Barrick Gold 547.50 -12.50 670 503 De La Rue 826 -3 994 549.50 Lancashire 579 1 647 440 Scottish Mortgage 713.50 -4 717.50 475
Aggreko 1483 -59 1685 882 Debenhams 68 -1.75 79 53 Land Securities 694.50 -4 707 545 SEGRO 298.75 -2 341.25 250.25
Alliance Trust 370.25 -5.75 378 293.50 Derwent London 1567 -10 1605 1208 Legal & General 110 -1 111 69.75
Serco Group 560 -13.50 651 494.25
Amec 1195 -29 1226 733.50 Diageo 1225 -25 1250 1000 Lloyds Banking Grp 66.25 -1.50 77.50 46.50
Amlin 385.50 -3 433 366.75 Dixons Retail 22.25 0.50 36.50 21.25 Logica 137.25 0 148 101.75 Severn Trent 1429 -17 1499 1086
Anglo American 3219 -101 3410 2254 Domino’s Pizza 545.50 -3.50 586 309.25 London Stock Ex. 855 -13.50 906 544 Shaftesbury 448 -4 460 349.25
Antofagasta 1476 -55 1634 761 Drax Group 395 -5.50 424.75 326.25 Lonmin 1835 -61 2113 1355 Shire 1666 -8 1674 1220
Aquarius Platinum 366 3 458 227 DS Smith 222.50 2.50 226 104 Man Group 301.25 -6.50 310.50 202 SIG 147 -6.25 153.25 90.75
ARM Holdings 533.50 -3 536.50 188.50 Dunelm 482 -8 550 325.25 Marks & Spencer 373.50 -8.75 427.50 323.50 Smith & Nephew 712 -2 714 537.50
Ashmore Group 357 -3 383.75 218 easyJet 455.75 1.75 496.50 348.50 Meggitt 357 -10.75 381 251.50 Smiths Group 1383 -5 1388 995.50
Ashtead Group 167.25 -3 177 77 Edin.Inv.Tst. 437.50 -4.25 467.25 364 Melrose 317 -12 329 162 Soco International 370.25 5.25 484.25 292
AstraZeneca 2979 -26.50 3385 2732 Electrocomponents 258 -4 279.50 174.75 Mercantile Inv Tst 1126 -7 1133 828 Spectris 1382 -36 1418 735
Autonomy 1408 -55 1975 1271 Enquest 143 -1.50 150.50 89.25 Michael Page 531 -9.50 565.50 346.50 Spirax-Sarco 1868 -34 2025 1240
Aveva Group 1610 -40 1673 1007 Essar Energy 538 5 589.50 383 Micro Focus 404 -0.50 546.50 276 Spirent 139.50 1.25 160.25 102.75
Aviva 428.25 -6.75 435 294.25 Eurasian Nat Res 1069 -32 1266 818 Millennium & Cop. 572.50 -4 594.50 368.50 Sports Direct 166 -6.50 174.75 92.25
AZ Electronic Materials SA (WI)311.50 -6 317.50 249 Euromoney Inst. 732 22 732 461 Misys 329 -2.75 343 201.50 St James’s Place 279 -4 292 204.25
Babcock International 565.50 -14.50 635 492.75 Experian Group 773.50 -5.50 819 572 Mitchells & Butlers 355 -0.50 361 265.50 Stagecoach Group 206 -5 224 160.75
BAE Systems 350 -11.25 388.75 294.75 Ferrexpo 438 -10 448 197 Mitie Group 232 -4.75 241 188.75 Standard Chartered 1704 -21.50 1950 1351.75
Balfour Beatty 325 0.75 327 229.75 FirstGroup 391.25 -6.75 412.50 336 Mondi 508 -14 557.50 338.25 Standard Life 224.50 -0.50 236 173
Barclays 296.25 -11.50 383.25 255.25 For.&Col.Inv.Tst 312.50 -4 316.25 251.50 Monks Inv.tst. 358 -2.75 363 271 Supergroup 1605 15 1638 535
Barratt Development 99.25 -1.75 137.75 70 Fresnillo 1430 -36 1682 669.50 Morgan Crucible 271.75 1 274.25 159.75
SVG Capital 250 5.50 250 125.25
BBA Aviation 226 -1 228 158 G4S 267.50 -6.25 283.50 237.75 Morrison (Wm) 267 -4 306.25 257.50
TalkTalk 159.25 -2.75 168.25 108.50
Bellway 667 -13 809 511 Genesis E.m.f. 550 2.50 568 399 Murray Int.Tst 933 -8 966 736.50
Berkeley Grp Hldgs 943.50 -16.50 960 742 GKN 220.25 -8.50 237 102 National Express 250.50 -3 259.50 195.50 Talvivaara Mining 587.50 -1.50 620 342.50
Betfair Group 1054 59.50 1550 882 GlaxoSmithKline 1191 9.50 1318.50 1095 National Grid 531 -9.50 596.25 484.25 Tate & Lyle 564.50 26.50 564.50 388.75
BG Group 1329.50 -36.50 1366 984 Great Portland Est. 363.50 1 369.25 279 Next 2134 -19 2344 1817 Taylor Wimpey 36.25 -1.75 44 22.25
BHP Billiton 2470 -32 2616 1684.50 Greene King 461.50 2.50 491.50 376.25 Northumbrian Water 320.25 -3.75 361.50 252.75 Telecity Group 460 0.50 532.50 360
BlackRock Mining 803.50 -3.50 815 492 Halfords Group 408 -1.50 550 372.75 Ocado Group 207.50 2.25 207.50 123.50 Templeton Emrg. 650.50 -3.50 689.50 471.50
BlueCrest AllBlue 171 1 174.50 156.25 Halma 335 -8.50 366.50 223 Old Mutual 127.25 -1.25 145.25 97.25 Tesco 403.75 -5.25 454.50 377.50
Booker Group 58.50 0 60.50 38.75 Hammerson 437 -0.50 437.50 336.25 PartyGaming 210.50 -1.75 334.50 205 Thomas Cook Group 202 0 272 171.75
BP 506 -3 655.50 303 Hargreaves Lansdown 541.50 -3 599 276.50 Pearson 1051 45 1051 855 Travis Perkins 1071 -30 1127 664.50
Brit Insurance 1053 -2 1055 728 Hays 125.25 -3.50 133.50 88.50 Pennon Group 630 -20 650 483 TUI Travel 269.50 -1 308.50 190
British Airways 287.50 -12.50 305 184.25 Henderson Group 155.50 0 155.50 112.75 Persimmon 443 -16.25 507.50 336.50 Tullett Prebon 395.75 -12.75 420.50 262
British Amer.Tob 2337.50 -34 2521 1959 Heritage Oil 459 10 581 296.75 Petrofac 1616 -69 1685 876.50 Tullow Oil 1360 -14 1388 991.50
British Empire Tst 501 -3 512 396.50 Hikma 900 5.50 900 525 Petropavlovsk 1095 -22 1365 852 UK Commercial Prop 81 -0.50 85 72.75
British Land 532 0 537 418.25 Hiscox 381.50 -6 399 326.25 Phoenix Group Hldgs 616 -5 758 557.50 Ultra Electronics 1760 -17 1895 1265
Britvic 445 -6.75 518 404.50 Hochschild Mining 523 -6 658 234 Premier Farnell 287.50 -1.50 304.50 174 Unilever 1895 5 1997 1688
Brown (N.) Group 307.50 -3.75 311.25 206.50 Home Retail Group 221.25 -4.25 295 188.50 Premier Oil 2007 -6 2025 1017 United Utilities 562 -8.50 628.50 507
BSkyB 746 0 746.50 524.50 Homeserve 444 -7.25 487.50 326.25 Provident Financial 962 -9.50 999.50 728.50 Utd Business Media 710.50 -1.50 712 409.75
BT Group 179.25 -4.75 190.75 110 HSBC Holdings 704 -5.25 719.50 596.25 Prudential 670 -18.50 697.50 487.50
Vedanta 2474 -24 2934 1839
Bunzl 755 -20 777 616.50 Hunting 753 -7 806 439.50 PZ Cussons 391.50 -6.50 409 234.75
Victrex 1408 0 1522 806
Burberry Group 1090 -25 1156 590.50 ICAP 559.50 -9 570.50 294 QinetiQ Group 134.25 -1.50 142 96.75
C&W Comms 50.25 0 63.75 44.25 IG Group 467.50 -13.50 553 362.50 Randgold Res 5155 5 6655 4209 Vodafone Group 176.50 -2 178.75 129.50
C&W Worlwide 69.50 -0.25 100 60.50 Imagination Tech 399 -6 441.75 215 RDS ‘A’ 2138.50 1 2162 1624 Weir Group 1645 -43 1861 735.50
Cairn Energy 446.50 -8 493.25 318.25 IMI 926.50 -26.50 953 530.50 RDS ‘B’ 2140 10.50 2159.50 1554 Wellstream Holdings 784 0.50 793.50 436
Caledonia Inv. 1868 -17 1928 1512 Imperial Tobacco 1829 -97 2154 1753 Reckitt Benckiser 3427 -64 3655 3037 Whitbread 1784 -42 1887 1266
Capita Group 721.50 -8.50 826 635.50 Inchcape 387.75 -7 394.75 237 Reed Elsevier 556.50 -3.50 563 460.50 William Hill 189 12.25 216.50 155.50
Capital & Counties 145.75 -1.75 157 100 Informa 448 0.25 448 304.50 Regus 100 0 120 66 Witan Inv Trust 514 -3 522 410
Capital Shop Centre 373 -3.75 424.75 301 Inmarsat 628 -14 821 606.50 Renishaw 1321 -8 1342 565.50 WOLSELEY 2186 -1 2195 1223
Carillion 379 4.25 387.50 273 InterContinental Htl 1322 -10 1332 887 Rentokil Initial 102.25 -2.50 138.50 87.75 WPP Group 793.50 -8.50 802 572.50
Carnival 3018 -91 3153 2037 Intermediate Cap.Grp 348 -8.75 360.25 240.50 Resolution 251.50 -2 328.50 211.25 Xstrata 1462.50 -34.50 1535 845.75
Catlin Group 367 -3.25 393 320 International Pers Fin 354.50 -1.75 386.50 183.25 Rexam 340 -5.25 356 276.50
Centamin Egypt 157.50 -5.75 197 106.75 International Power 422.75 -3.50 448.50 284.50 Rightmove 796.50 -2.50 812 500.50
Centrica 330 -5.50 346 264 Intertek Group 1785 -65 2000 1150 Rio Tinto 4375 -75 4584 2812 LONDON TOP 250 BY MARKET CAPITALISATION
Charter 835 5.50 853.50 567 Invensys 357.50 -2.50 364.25 230.25 RIT Capital Partners 1311 6 1311 971.50 POWERED BY
Chemring Group 3184 -49 3663 2598 Investec 513 -12.50 562 417.75 Rolls-Royce Group 649.50 -11.50 665 473.50
Close Brothers 886 -1 888.50 664 ITV 77.50 -1 78.50 48.25 Rotork 1662 -65 1895 1215
COBHAM 220 -6.50 276 192.25 Jardine Lloyd 632 -2 634 459 Royal Bank of Scot 42.25 -0.50 58 31.25 www.digitallook.com

FTSE 100 falls back as bank, Goldman and Wells

mining and retail stocks slide Fargo dampen rally
the big momentum plays during the

THELONDON Citigroup missing estimates on

Tuesday.
UK banks fell on talk out of
per cent on worries over its future as
credit insurers reduced the cover they
are prepared to give to suppliers of the
THE NEW YORK past year and could serve to extend
the sell-off yesterday. Financial and
technology stocks have been driving

REPORT Germany, which has been denied, that

Greece’s debt may have to be restruc-
tured, traders said. Barclays fell 3.8 per
music and book retailer.
Morrison Supermarkets was also
weighed on by a Morgan Stanley
REPORT the surge that has pushed the bench-
mark index up nearly 10 per cent
since the start of December, which
cent. downgrade to “underweight”. some investors believe has stocks

B T
ANKING and mining stocks London-listed miners such as
weighed on London’s top share Lonmin, down 3.2 per cent, were lower
index yesterday as concerns over along with metals after economic data
the global economic recovery from the United States and ahead of a
resurfaced, while sentiment among raft of key Chinese economic data due
retailers was dented after some disap- to be released early today.
pointing updates. Groundbreaking on new US home
The FTSE 100 closed down 79.73 construction fell more than expected
points, or 1.3 per cent lower at in December to its lowest in over a
5,976.70, ebbing away from Tuesday’s year, suggesting the battered housing
fresh 31-month high. sector remains a major roadblock to
“The market moved a long way economic recovery.
ahead of the last quarter and it “There’s a bit of a dance going on,
deserves a bit of a pull back,” said Paul the indexes go up and hit new highs
Kavanagh, a partner at Killik & Co. and then pull back as nervousness
Kavanagh said there was still creeps in,” said Karen Olney, head of
appetite to get involved in this market thematic strategy at UBS.
with short-term investors enjoying the Retailers such as Marks & Spencer,
fluctuations, but longer term Next and Morrison Supermarkets fell
investors are lingering on the sidelines as much as 2.3 per cent after investors’
waiting to get involved lower down confidence was dented in the sector
than 6,000. after updates from Kesa and HMV.
Optimism over corporate earnings Europe’s third largest electricals
took a knock after US banking giant retailer, FTSE 250-listed Kesa, shed 9.8
Goldman Sachs posted a decline in per cent after warning on full-year
quarterly profit, which followed profits, while small cap HMV slid 2.9
Imperial Tobacco fell five per cent HE S&P 500 suffered its biggest
after going ex-dividend. decline in nearly two months
On the upside, publisher Pearson yesterday as disappointing
was the top gainer, rising 4.5 per cent results from Goldman Sachs
after raising its profit forecast again. and Wells Fargo put a damper on the
GlaxoSmithKline and Essar Energy rally.
rose 0.8 and 0.9 per cent respectively, The Nasdaq fell more than one per
as bargain hunters moved in following cent, its biggest daily percentage loss
declines in the previous session. since 16 November, as more disap-
Tate & Lyle gained 4.9 per cent with pointment in earnings came from
traders citing talk of bid interest, with chipmaker Cree. Its stock tumbled
US agricultural business Cargill cited 14.5 per cent to $53.63.
as a possible suitor. The Dow Jones industrial average
fell 12.64 points, or 0.11 per cent, to
ANALYSIS l FTSE 5,976.70 11,825.29. The Standard & Poor’s 500
6,100 19 Jan Index lost 13.10 points, or 1.01 per
cent, to 1,281.92. The Nasdaq
Composite Index dropped 40.49
5,900 points, or 1.46 per cent, to 2,725.36.
After the close, F5 Networks shares
plummeted 20.7 per cent to $110.08
5,700
after the network equipment maker
posted weaker-than-expected quarter-
ly revenue and forecast second-quar-
5,500
ter revenue below Wall Street’s
25 Oct 12 Nov 2 Dec 22 Dec 14 Jan estimates. The stock has been one of
primed for a pullback.
“Even stocks here that are beating
expectations are not acting favorably
so (for) the market, it may be time for
a pause, and that may be what we are
seeing here,” said Paul Mendelsohn,
chief investment strategist at
Windham Financial Services.
A prime example was Apple, which
slipped 0.5 per cent to $338.84 after
the company reported a quarterly
profit that blew past Wall Street’s
expectations on strong sales of
iPhones, iPads and Mac computers.
Goldman Sachs’s stock fell 4.7 per
cent to $166.49, its biggest daily per-
centage decline since 30 April, after
the Wall Street firm posted a 53 per
cent drop in profit as trading revenue
tumbled. Shares of Wells Fargo lost
two per cent to $31.81 after the com-
pany posted a fourth-quarter profit
that missed some analysts’ estimates.
Bucking the trend, IBM climbed 3.4
per cent to $155.69 on strong earn-
ings after Tuesday’s close.
CITYA.M. 20 JANUARY 2011 Wealth Management | Current Accounts 23

How to rob your bank

Picking the best account for you can Scotland and the Co-operative Bank.
If you keep your account in credit,
pay dividends, suggests Jennifer Hill the Reward account from Halifax is
the best option. As long as you pay in
£1,000 per month, you’ll receive £5 a
month. Unlike the Santander deal,

S
ANTANDER has brought back
its switching deal, giving new
customers £100 when they
move their main current
account to its offering which pays 5
per cent interest for the first year.
However, the bank has been voted
worst for customer service in a string
of surveys by organisations including
Moneywise, MoneySavingExpert.com
and consumer group Which?
Three-quarters of consumers have
never considered switching their cur-
rent account, according to Consumer
Focus.
Michelle Slade at Moneyfacts, the
financial data firm, says: “People are
more likely to get divorced than
switch their current account. Most
people see it as too much hassle, but
all the major providers offer a switch-
ing service where they transfer your
regular payments for you.
“Getting the best deal is important,
but so is customer service. If your
bank isn’t up to scratch, vote with
your feet and switch.”
So, which banks are top for what?
CREDIT INTEREST
A total 57.4 per cent of current
accounts no longer pay credit
interest, compared with 23.2 per cent
three years ago, according to Defaqto,
another financial data firm. These
include main current accounts from
Barclays, First Direct, HSBC,
Nationwide, NatWest, Royal Bank of
this is an ongoing incentive, not an
introductory offer.
Andrew Hagger at price
comparison website Moneynet.co.uk,
says: “The best move is to keep your
savings in a separate account: not
only will you get a better return,
you’re less likely to be tempted to dip
into your savings, too.”
OVERDRAFTS
If you go overdrawn, the Halifax
account becomes expensive. It
charges £1 per day for overdrafts up to
£2,500, £2 a day over that and a hefty
£5 a day for unauthorised borrowing.
Lloyds TSB started making a £5
monthly charge for people who use
an authorised overdraft from
Good customer service matters
December – and Norwich &
Peterborough building society has fol-
lowed suit.
If you pay in more than £1,500 a
month consider the First Direct 1st
account. It has an interest-free £250
overdraft (then a competitive rate of
15.9 per cent). You’ll get £100 to
switch and a further £100 after six
months if you are not happy and want
to transfer away.
FRINGE BENEFITS
If you’ll make use of added benefits,
so-called “packaged accounts” –
Picture: GETTY
which charge an average fee of £14.92
a month, says Defaqto – are an option.
The Privilege account from the Co-
op charges £9.50 per month. You get
an interest-free £200 overdraft, world-
wide family travel insurance, mobile
phone insurance and the chance to
tailor the product by choosing an
extra benefit from its “traveller”, “gad-
get” or “safeguard” options.
David Black at Defaqto says: “At the
premium end of the market some
accounts offer a concierge service, but
look at the incentives and think about
which are appropriate for you.”

Mind the gap (between arrival times) and cash in

Commuters could be £145 a year process. By inputting your regular
journeys, it alerts you when there
better off by claiming poor service were severe delays to your line and
sends you the refund form. For other
rebates over delays, says Jennifer Hill rail operators in the UK as well as the
London Underground, a similar free
service is offered by
Traindelays.co.uk.

H
AS your journey to work been
thwarted by delays in the past
six months? Well, Tube pas-
sengers have failed to claim
rebates worth a total of almost £20m,
according to a website that is amass-
ing a cult following among disgrun-
tled commuters.
Since the start of July, there have
been 1,514 severe delays on the
Underground and rebates worth
£19.88m have gone unclaimed,
according to Mytubewaslate.com.
The largest monthly sum that com-
muters failed to claim was £4.55m in
October.
Passengers delayed by 15 minutes
or more for reasons within the con-
trol of Transport for London (TfL) are
entitled to a full refund. These come
in the form of vouchers in the post,
which can be used to top up your
Oyster prepay or put towards the cost
of your monthly travel card.
Delays due to security alerts, third
party action and bad weather don’t
qualify, but signal failure or late
completion of engineering works do.
The delay is across your whole jour-
ney, so if you’re delayed for a total of
a quarter of an hour across different
tube lines you’re still entitled to
claim – as long as you do so within
two weeks.
You can also get a refund on DLR
services delayed by 15 minutes or
more and London Overground servic-
es running at least 30 minutes late.
You can claim through the TfL
website (tfl.gov.uk).
Mytubewaslate.com, which is free to
use, aims to simplify the claims
The potential savings are substan-
tial: commuters in zones 1-4 with
one delayed Tube journey a week
could make £145 over the course of a
year.
Connor Kinnear, who founded
Mytubewaslate.com early last year,
says many people are unaware of the
ability to claim.
“Regular passengers of the district
and jubilee lines, which were the
worst performing in December, will
have had first-hand experience of Most of these people probably paid to nap there. You needn’t Picture: REX
TfL’s sporadic service,” he says.
“If that wasn’t hard enough to POTENTIAL TUBE REFUNDS
swallow, Tube fares have just gone July Aug Sept Oct Nov Dec TOTAL
up by 6 per cent. We hope to encour-
Number of delayed incidents 209 213 222 349 193 328 1,514
age commuters to habitually claim
Value of claims made £84,661 £92,945 £54,435 £118,479 £100,599 £88,490 £539,609
refunds, because too many people
don’t realise they’re entitled to their Value of claims not made £2.59m £2.85m £3.02m £4.55m £2.57m £4.3m £19.88m
money back for poor service.” Total value of potential claims £2.68m £2.95m £3.07m £4.67m £2.67m £4.39m £20.43m
 Lifestyle
24
Get booked in early for a
Valentine’s to remember
With less than a month to go to
February 14, Timothy Barber picks
the places for lovers to celebrate
RESTAURANTS
Sauterelle The cosy bolthole overlooking
the inner courtyard of the Royal Exchange
(right) is serving up a special Valentine’s
menu on the day. Diners will be given a
rose cocktail on arrival, followed by a five
course meal showcasing head chef
Robin Gill’s sophisticated seasonal style.
And of course, while you’re there, you can
always pop into one of the Royal
Exchange’s luxury boutiques to find an
extra special Valentine’s gift. Even a ring, per-
haps? Five course meal is £50 per person.
www.sauterelle-restaurant.co.uk
Corrigan’s Mayfair Renowned Irish chef Richard
Corrigan’s flagship restaurant is a place that oozes class
and sultry charm – as does the three course Valentine’s
menu he’s put together. Seared scallops with Indian
spices and red wine poached turbot with razor clams
are luxurious enough, but the pick could be the beef
Wellington, designed for two to share – if anyone can
create something magnificent out of this old British
HOTELS
51 Buckingham Gate Smart St James
hotel 51 Buckingham Gate – also home to
Michelin starred Indian restaurant Quilon
– is offering a Valentine’s experience
which comes complete with a personal
in-suite butler to take care of you.
There’s also afternoon tea (with rose
pettle-infused scones) and dinner in
Quilon, plus a bottle of Taittinger ready
for your arrival in your luxury suite. £420
for two. www.51-buckinghamgate.com
The Landmark The ultra-grand Marylebone hotel
(far right) will provide a “bath butler” – someone to
run a special bath for two full of ESPA oils and salts –
as part of its True Romance package. There’s also a
champagne to enjoy in the bath, and a three course
dinner in the Winter Garden restaurant. For those who
feel they’ve got the bath thing covered sans butler, the
Champagne & Strawberry package will make sure
these are in your room to set the mood. True Romance
package £295 plus VAT; Champagne and Strawberry
favourite, Corrigan can. Ladies get a box of
choccies on departure. £75 per person.
www.corrigansmayfair.com
Babbo Intimate but welcoming and full
of old-fashioned Italian charm, Babbo
– the name means “daddy” in
Italian – is offering diners a
complimentary champagne
cocktail on Valentine’s night,
called the “Puccini”. That’s fol-
lowed by a three course menu of
romantic delicacies, such as sea bass
with an artichoke risotto, and nougat
with hot chocolate sauce. £50 per head.
39 Albermarle St, W1S 4JQ. www.bab-
borestaurant.co.uk
The Square The Bruton Street favourite (above
right) this week retained its two Michelin stars, and
the modern French cooking on offer from chef-patron
Philip Howard is some of the finest in London. Those
package £265 plus VAT. www.landmarklon-
don.co.uk
The Goring A Belgravia institution
and one of London’s most elegant and
exceptional hotels (left), the Goring cel-
ebrated its centenary last year.
The “A Goring Affair to
Remember” package starts
with tea, cakes and cham-
pagne served in your room.
Then settle down to watch Cary
Grant and Deborah Kerr in An Affair to
Remember, one of the most romantic
movies ever made, with popcorn and
sweets to tuck into (and you can keep the
DVD). There’s also champagne breakfast
the next morning. Available from 12-15 Feb,
£465 for two. www.thegoring.com
Malmaison London Squirreled away in the cor-
ner of Charterhouse Square in Clerkenwell, the
lucky enough to eat there on 14 February will enjoy
one of the most extravagant Valentine’s meals in town
– a special, eight course tasting menu with sensuous
courses like veloute of oysters with a tortellini of crab,
cucumber and chives, and sautee of langoustine tails
with pumpkin gnocchi and an emulsion of potato and
truffle. Tasting menu £105 per peson, or £175
per person with matched wines.
www.squarerestaurant.com
Rotunda Ladle on the romantic
charm, complete with some cultural
sophistication, at Rotunda, the rather
fine restaurant at the King’s Cross arts
venue King’s Place, which is hosting a
“poetry dinner”, complete with live poet.
He’ll be writing bespoke poems for loved up
couples on request and giving tableside rendi-
tions of poetic favourites. The four course meal
includes beef and lamb from the restaurant’s own
Northumberland farm. £37.50 per person for four
courses. www.rotundabarandrestaurant.co.uk
Malmaison London is something of a hidden gem. Its
highly luxurious Square Suite – all velvets and sultry
opulence of a kind ideal for amorous debauchery –
can be snapped up from £615. Champagne on ice,
strawberries, oils and candles will be provided, as
well as a champagne breakfast the next morning.
www.malmaison-london.com
Runnymede-on-Thames If you
fancy escaping central London for
somewhere quiet and relaxed, head to
the Runnymede-on-Thames, on the
banks of the river near Windsor. As
well as beautiful surroundings, river-
side restaurants and a deeply indulgent
spa, there’s the advantage that, since St
Valentine’s falls on a Monday, if you book
the two nights “Romance-on-Thames” pack-
age for Friday and Saturday night you can get
Sunday night thrown in for free. £199 per room,
including champagne, dinner and breakfast, available
Feb 11-13. www.therunnymede.co.uk
CITYA.M. 20 JANUARY 2011
Speakeasy
cocktails come
to Chinatown
Tim Badham
Going
Out
W
HILE the new year has already
seen a fresh batch of new London
openings, one of the most origi-
nal happened just before
Christmas with the small but extremely
endearing Parisian import, the
Experimental Cocktail Club (www.china-
townecc.com). Touching down in Chinatown,
an unusual destination address for discern-
ing cocktail aficionados, ECC is nestled
innocuously amongst the dim sum fray of
Gerrard Street. The door may be tricky to
spot but their superb mixology talents are
not. It features stunning and inventive
cocktails in a funky, cool, speakeasy setting
that you would expect in Shoreditch, or
more likely New York or Paris. I’d highly rec-
ommend seeking it out if you can but a
guest list policy does apply on busy nights.
Back to January and the Hart brothers
have just unveiled the QV Bar (www.quo-
vadissoho.co.uk) at the iconic Quo Vadis on
Dean Street. They’ve kept style in the family
with the classy ground floor bar’s look cre-
ated by Sam and Eddie Hart’s interior
designer mother. Having teamed up with
Ketel One vodka, they offer smart cocktails
and as you’d expect there’s also a tempting
British bar menu. Open from noon ‘til mid-
night, the QV is a well turned-out and very
welcome addition to the Soho scene –
there’s even an oyster hour from 5.30pm.
Another new restaurant bar is ORA
(www.orarestaurant.co.uk), just behind Oxford
Circus on Little Portland Street. With dark
woods and simple, contemporary lines this
off-the-beaten track hangout is attracting a
young and trendy crowd with high quality
cocktails at reasonable prices.
If resolutions are broken and you’re
already back to clubbing, look no further
than the re-launch of the thoroughly win-
tery Aprés London (www.apreslondon.com) on
Duke Street, next to Selfridges. This wooded
ski lodge-style venue has a lively upstairs
bar with outside space to boot, but the
party really gets started downstairs in the
late lounge when a well-heeled crowd come
out to play. Door policy downstairs is much
stricter but the emphasis is on a fun night
for everyone inside. Champagne breakfasts
from 4am will soon fill a missing central
London niche.
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.
CITYA.M. 20 JANUARY 2011 Lifestyle | TV& Games 25

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 Human Planet
9pm CHOICE Come Fly with Me
9.30pm Not Going Out
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week:
Skiing Weatherview
12.25am Sign Zone: Britain’s
Missing Dads: Panorama
12.55am Sign Zone: Countryfile
1.55am Sign Zone: Antiques
Roadshow 2.55am Sign Zone:
Filthy Rotten Scoundrels
3.40am-6am BBC News
6pm Eggheads
6.30pm Great British
Railway Journeys
7pm Who Does What? New
series. Couples undergo a
relationship audit.
8pm Michel Roux’s Service: The
trainees work at an exclusive
country house hotel in
Dartmoor.
9pm Men of Rock: The work of
geologists Edward Bailey and
Arthur Holmes.
10pm The Great Outdoors
10.30pm Newsnight: Weather
11.20pm The Planets
12.10am Bowls
1.10am BBC News 3.40am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away:
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five:
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Daylight Robbery: 7.55pm 4thought.tv 7.30pm How Do They Do It?
Tonight 8pm Relocation, Relocation: A Five News Update
8pm Emmerdale civil servant and his partner 8pm CHOICE Secrets of
8.30pm Coronation Street: search for two properties in the Blitz: Revealed: Monitoring
Peter turns to Nick about his Manchester. the public’s morale during
drink problem. 9pm Rome Wasn’t Built in a the Second World War:
9pm Kidnap and Ransom Day Five News Update
10pm ITV News at Ten 10pm CHOICE 10 O’Clock Live 9pm Jack the Ripper – The COME FLY WITH ME
10.30pm London News 11.05pm Comic’s Choice: Definitive Story: BBC1, 9PM
10.35pm Odd One In Sean Lock 10pm FILM From Hell: Mystery Immigration officer Ian Foot pulls Taaj
11.20pm Send in the Dogs 12.10am FILM Eternal thriller, with Johnny Depp. 2001. in for questioning and Fearghal takes
12.20am The Zone; Sunshine of the Spotless 12.20am SuperCasino desperate measures to get nominated
ITV News Headlines Mind 2004. 3.55am The Business Inspector for Steward of the Year.
2.20am The Jeremy Kyle Show 2.05am FILM Crimson Rivers 2000. 4.45am HouseBusters
3.15am Daylight Robbery: Tonight 3.55am Brothers & Sisters 4.40am 5.10am Wildlife SOS
3.40am-5.30am ITV Nightscreen ER 5.25am-6.10am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 11.30pm Game, Set and Mats 9pm How Drugs Work 10pm 12am IRT Deadliest Roads 11pm Critical Condition 12am
SATELLITE & CABLE

7pm Live European Challenge
Cup Rugby Union 10pm Time
of Our Lives 11pm Ringside
12am European Challenge Cup
Rugby Union 3am-6am Live
International One-Day Cricket
SKY SPORTS 2
7pm ATP Tour Uncovered
7.30pm Motor Racing 8pm
Ringside 8.55pm Live Copa Del
Rey Football: Atletico Madrid v
Real Madrid (Kick-off 9.00pm).
11pm WWE: Late Night – Raw
1am WWE: NXT 2am-4am
Copa Del Rey Football
SKY SPORTS 3
6pm European Tour Golf 8pm
Live PGA Tour Golf: The Bob
Hope Classic. 11pm European
Tour Golf 1am-4am PGA Tour
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BRITISH EUROSPORT
7pm Bobsleigh 8pm Skeleton
8.30pm Australian Open Tennis
12am-6am Live Australian
Open Tennis
ESPN
6.45pm ESPN Press Pass
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Kicks: FA Cup 8pm Live Coppa
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10.45pm ESPN Kicks: FA Cup
11.15pm European Rallycross
12am Live NHL Ice Hockey
2.30am ESPN Press Pass 3am
Goal! 3.30am-6am Live NHL
Ice Hockey
LIVING
7pm Ghost Whisperer 8pm
FILM Home Alone 3 1997.
10pm Criminal Minds 12am
CSI: Crime Scene Investigation
2.50am Charmed 4.30am
Four Weddings 5.20am-6am
Maury
BBC THREE
7pm Top Gear 8pm Great
Movie Mistakes 2: The Sequel
EastEnders 10.30pm Ready
Steady Drink 11.30pm Family
Guy 12.15am How Drugs Work
1.15am Great Movie Mistakes
2: The Sequel 2.15am Ready
Steady Drink 3.15am Hotter
Than My Daughter 3.45am
Most Annoying People 2010
4.15am-5.15am Sun, Sex and
Suspicious Parents
E4
7pm Hollyoaks 7.30pm Friends
9pm The Big Bang Theory
9.30pm How I Met Your
Mother 10pm FILM Without a
Paddle 2004. 12am Scrubs
12.55am RuPaul’s Drag Race
2.35am Young, Sexy and Rich
3.20am Beauty and the Geek
4am Life Unexpected 4.40am-
6am Switched
HISTORY
7pm Heir Hunters 8pm IRT
Deadliest Roads 10pm Swamp
People 11pm The True Story
1am Oil Riggers 2am America’s Kids’ Hospital 1am Medics 2am
Toughest Jobs 3am Decoding Critical Condition 3am 10
the Past 4am UFO Files 5am- Years Younger 4am Bringing
6am Deep Sea Detectives Home Baby 5am-6am A Baby
Story
DISCOVERY 10 O’CLOCK LIVE
8pm How Do They Do It? SKY1 CHANNEL4, 10PM
8.30pm How It’s Made: 8pm House: The medic returns New series. Light-hearted current
Baseball gloves, stetson hats to Princeton-Plainsboro and affairs show, with David Mitchell,
and medical electrodes. 9pm plans to make big changes to Jimmy Carr, Charlie Brooker and
Wheeler Dealers 10pm his lifestyle, while the team Lauren Laverne.
Extreme Engineering 11pm struggles to diagnose a patient
Frontline Battle Machines with who posts his symptoms on the
Mike Brewer 12am Bear Grylls: internet. 9pm Thorne: Scaredy
Born Survivor 1am Deadliest Cat: DI Tom Thorne traces two
Catch 2am Days That Shook killers. 10pm A League of Their
the World 3am Treasure Quest Own: Unseen: Out-takes and
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4.40am Building the Biggest sports-based comedy quiz.
5.30am-6am How Does That 11pm Inside: America’s
Work? Toughest Jail 12am Road Wars
1.50am Ross Kemp in Search SECRETS OF THE BLITZ: REVEALED
DISCOVERY HOME & of Pirates 2.40am Oops TV CHANNEL5, 8PM
HEALTH 3.30am The 4400 4.20am Reports from the Home Intelligence
7pm A Baby Story 8pm 10 Don’t Forget the Lyrics Division reveal how the public’s morale
Years Younger 9pm Kids’ 5.10am-6am Are You Smarter was monitored in Britain’s blitzed cities
Hospital 10pm Medics Than Your 10 Year Old? during the Second World War.

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


QUICK CROSSWORD
   

SUDOKU KAKURO
27 16 16 6 35 22
20 9
24  
30 17
Place the numbers from 1 to 9 in each empty cell so that each 3  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 13 11
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 11 19
   
above or to the left of it. 11 23 6
You can only use the digits 1-9 28  
    and you must not use the 12    
same digit twice in a block. 33 15 34 17
 The same digit may occur 41 
16 16
   more than once in a row or
column, but it must be in a
20
22 7
23

29 10
    separate block.
9 19
    18 10
 

    ACROSS DOWN
1 Light glass formed on the 1 Beforehand (5)
  
 WORDWHEEL R M
surface of some lavas (6)
4 Expressed in words (4)
6 Habitual hour for a
2 Coalesces (5)
3 Malignant growth
or tumour (6)
Using only the letters in the Wordwheel, you have midday meal (9) 4 Brings to a final
    ten minutes to find as many words as possible,
E I 8 Not easily explained (3) conclusion (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters R 10 Brown with a
reddish tinge (6)
5 Mature female
deer (3)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
N E 13 Articulate in a very careful
and rhythmic way (4)
7 Environmental
condition,
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
A D 14 Instant (5) surroundings (6)
16 Hindu meditation and 9 Rough dwelling
QUICK CROSSWORD 2 8 9 7 5 1 7 relaxation method (4) made in a
B A L M R E C A P
1 7 5 6 2 3 9 SUDOKU          17 Female sibling (6) trench (6)
A A B L E A U
4 9 3 8 9 7 4 6
         20 Complexion (3) 11 Statuesque (7)
3 2 1 1 3
S P A R H R O T          21 Litter used as a 12 “It is”, poetically (3)
I S T U D E N T U 5 6 9 8 6 1
C U P N A H I P 9 6 1 7 3 4 2 8 5
         means of transporting 15 Message written
         in secret code (6)
E M B
G A R I
A R
S
G O
R U B
2 3
1
9 8 7
2 3
6
1 5
WORDWHEEL         
sick people (9)
22 Cautious (4) 18 Chuck (5)
E S E A L E G S O         
C H I S L E A R
2 7 4 3 1 3 9 7 The nine-letter word was 23 Sliding container in a 19 Happen again (5)
9 8 8 6 9 8 1         
K O E P E E N
SANDPAPER piece of furniture (6) 21 Adult female
O W N E D N A M E 1 9 5 3 7 7 3         
hog (3)
 Sport
26
Liverpool chairman
vows to spend big
Liverpool chairman Tom Werner has
promised to give Kenny Dalglish the
funds to bring big name players to
Anfield.
“I don’t want to get the wage bill
down, I want it to increase and we
have the resources to do that – I just
think we ought to be performing at a
better level,” Werner said.
One of the players Liverpool are
thought to be interested in is Ajax
forward Luis Suarez. The 23-year-old
Uruguay international could cost in
the region of £20m.
Sunderland deny
interest in Keane
TOTTENHAM striker Robbie Keane
will not be replacing Darren Bent
at The Stadium of Light, according
to Sunderland chairman Niall
Quinn.
Quinn, who played alongside
Keane for the Republic of Ireland,
said “Robbie works well off a big phys-
ical player but we don’t have that.
Robbie doesn’t quite suit us.”
Sunderland are, however, said to be
readying a bid for Keane’s current
club colleague Peter Crouch.
Chelsea ready to
increase Luiz offer
CHELSEA are prepared to up their
offer for a third time in a bid to land
Benfica’s Brazil defender David Luiz.
The champions have already had
two bids rejected, with Portuguese
club, who received £17m in the sum-
mer from the Blues for the services of
Ramires, holding out for £25m.
Meanwhile, defenders Jose
Bosingwa and Branislav Ivanovic are
both close to agreeing contract exten-
sions to remain in west London.
Hackers to target Games
▲
OLYMPICS
BY FRANK DALLERES
LONDON’S Olympic Games is certain
to come under attack from cyber ter-
rorists, the man in charge of IT and
telecommunications for next year’s
extravaganza has warned.
Gerry Pennell, chief information
officer for 2012, says malicious
individuals or groups are
sure to try to sabotage the
Games by hacking into
its networks.
“We will get cyber-
attacked, for sure,”
said Pennell. “We’re
working very close-
ly with our partners
and also with gov-
ernment to make
sure that we’ve got
the right level of
defences against pre-
dictable cyber attacks.
“Clearly you can never say
never, but I think we’re doing every-
thing we need to do to minimise the
chances of that causing us a problem.”
Pennell said saboteurs had attempt-
ed to attack all recent Olympics,
Wenger: Gunners
hungry for
success
LEEDS UNITED 1 He said: “The team goes from
ARSENAL 3 “We got a warning in the first
▲
FOOTBALL
BY JAMES GOLDMAN
ARSENAL manager Arsene Wenger
believes his side’s defeat of Leeds in
last night’s FA Cup third round
replay confirms the end of a six-
year trophy drought is just around
the corner,
Leeds were well deserving of a
second shot at Arsenal after their
performance at Emirates Stadium
10 days ago, but they were emphati-
cally second best on their own
patch as the Gunners, whose goals
came from Samir Nasri, Bacary
Sagna and substitute Robin van
Persie, cruised through in style.
But despite the trademark class
and invention that accompanied
victory, Wenger pinpointed hunger
as the main quality his side are
showing that will make the differ-
including Beijing in 2008, with the
aim of “taking down the Games itself,
if they can penetrate far enough to
bring the results network down”.
He added that recent cyber-attacks
on the whistle-blowing website had
raised the profile of the problem, but
is confident that 200,000 hours of sys-
tems testing that started yesterday will
help defend against the threat.
Speaking at the launch of
the London 2012 Tech
Lab at Atos Origin’s
offices in Canary
Wharf, Pennell
added: “It’s some-
thing I spend a lot
of personal time on
and I have a team
dedicated to this
particular issue, and
we work with all our
partners around mak-
ing sure we are secure
from a cyber point of view.”
Pennell said the
Commonwealth Games debacle in
Delhi had underlined the importance
of rigorous testing of the event’s infra-
structure. “There is no chance of us
going there,” he added.
CITYA.M. 20 JANUARY 2011
ence come the end of the season.
strength to strength and we have
shown again we are hungry.
game and we [learnt] the lesson.
That shows that my players are
intelligent and that is a good sign.
“This win gives us a good oppor-
tunity to play at home against
Huddersfield – of course we will be
favourite and I think we had that in
mind tonight.”
Nasri set Arsenal on their way
with goal of typical elegance in the
fifth minute. The France star col-
lected Andrey Arshavin’s pass,
waltzed into the penalty area and
beat Kasper Schmeichel with ease
for his 14th strike of the campaign.
Arsenal should have been further
in front by the time Bacary Sagna
took matters into his own hands
with a blistering effort 10 minutes Wenger threw on Cesc Fabregas domestic cup competitions, but has
before the break. and Van Persie in search of the goal bucked the trend this season, much
Bradley Johnson offered Leeds that would kill the tie, and the to the delight of Nasri, who is tar-
hope with an even better goal on Dutch star provided it 14 minutes geting a clean sweep of honours.
the stroke of half-time, but the from time with a far post header. He said: “We want to win every
Championship side never threat- Wenger has often been criticised competition and this cup is really
ened an equaliser after the interval. for fielding weak sides in the important to us.”
Ex-BOA boss Clegg
favours Spurs bid
TOTTENHAM’S bid for the Olympic
Stadium has been boosted after one Armitage played three times for England in the autumn internationals Picture: GETTY
of the key figures involved in securing
the Games called it “madness” to con-
sider West Ham over Spurs.
However, Simon Clegg, the former
Armitage charge could add to
chief executive of the British Olympic
Association, criticised Tottenham for
proposing to revamp Crystal Palace
Johnson’s Six Nations headache
rather than deliver an athletics legacy
to east London. Bath on New Year’s Day.
▲
RUGBY UNION
He said: “It does seem to me the Armitage must answer a charge of
best solution for the Olympic Stadium BY JAMES GOLDMAN conduct prejudicial to the interests of
would be Tottenham’s proposal but ENGLAND manager Martin Johnson the game after he allegedly pushed
on the proviso of a track and field faces yet another selection headache and used threatening language
legacy elsewhere in east London ahead of the Six Nations campaign towards a doping control officer.
rather than Crystal Palace which is in after the RFU charged Delon The Exiles full-back subsequently
the wrong place and where public Armitage with misconduct. passed the drugs test but still
transport links are not good.” Johnson, who is alrerady without becomes the first England player to
West Ham have promised to keep four of his squad, may now have to be charged with this form of offence.
the running track, while Tottenham contend without London Irish’s Rugby Board regulations state that
plan to rebuild the stadium without Armitage, who will attend a hearing hurling foul language at match offi-
any athletics facilities. today for an alleged offence which cials carries a ban of between six and
took place after the defeat against 18 weeks.
CITYA.M. 20 JANUARY 2011
Nasri now has 14 goals
in all competitions this
season
Picture: ACTION IMAGES
We have a team
full of leaders, says
Arsenal manager
ARSENAL manager Arsene
Wenger has denied his side suf-
fers from a lack of leadership
Midfielder Denilson had been
quoted yesterday in an interview
given to Brazilian TV saying
“Fabregas is the captain, but he
is not a leader to me”.
The 22-year-old subsequently
claimed he had been misquoted,
while Fabregas himself insisted
their is no rift between the two.
Wenger, meanwhile, who
allowed Samir Nasri to wear the
armband for the first time in last
night’s win at Leeds, hailed
Fabregas as an outstanding
leader.
He said: “Cesc Fabregas is our
captain and Van Persie is our vice
captain, we have many leaders in
our team and we are very happy
with our captain. We have a
shared leadership in our team
but Fabregas is our captain. I
believe Fabregas is an outstand-
ing leader.”
Prior inclusion makes sense
CRICKET COMMENT
ANDY LLOYD
S
TEVEN DAVIES is an extremely
talented cricketer, one with a
bright international future
ahead of him, but the strength
in depth of this England unit is such
that he can have no complaints at
missing out on a World Cup place to
Matt Prior.
Davies has been given the oppor-
tunities to shine against Australia in
four Twenty20 and one-day games,
but hasn’t really been able to domi-
nate or impose himself on an attack
his main rival had so recently pros-
pered against.
It was a tough call for the selec-
tors, but one I believe they’ve got
right. Luckily for Davies, he’s young
enough at 24 to know there will be
opportunities down the line for him.
Keothavong: I blew chance
British No2 laments
missed opportunity after
defeat in second round
of Australian Open
▲
TENNIS
BY TOM CLARKE
BRITISH No2 Anne Keothavong admit-
ted blowing a golden opportunity
after coming within six points of
shocking 30th seed Andrea Petkovic
at the Australian Open.
Keothavong, who has never been
further than round two in
Melbourne, won the first set 2-6 and
was 15-30 ahead at 5-5 in the second
before capitulating to lose the next
two sets 7-5, 6-0.
The Londoner (inset) spoke after
the match about the decisive
moment, calling it “a clear turning
point”. She added: “At 15-30 she just
kicked a serve in and I kind of hit a
nothing return. It just went into the
bottom of the net.”
Keothavong had until then seemed
in control and was left to wonder
what might have been. She
said: “The opportunity
was there, I just didn’t
take it today.”
There was anoth-
er British casualty
on day three as
Elena Baltacha was
dumped out in
straight sets
against seven-time
grand slam winner
Justine Henin.
The British No1
never looked like compet-
ing with the Belgian former
world No1 who sealed a comfortable
win 6-1, 6-3.
The presence of the Sussex glove-
man will restore a right-hand / left-
hand combination at the top of the
order and that is vital in the 50 over
game, especially with the advent of
power-plays. Whether Prior remains
as an opener for the whole tourna-
ment remains to be seen, but he’s
good enough to do a job there.
If England were looking for an
alternative to Davies, some people
will wonder why Alastair Cook, the
most in-form opener in world cricket
at the moment, wasn’t given a shot.
As good a player as Cook is, he’s
not really built for this format of the
game, and there’s no room in this
side for both him and Andrew
Strauss.
Despite his recent loss of form
with the bat, Paul Collingwood is a
certain starter. I think a couple of
weeks off will do him the world of
good and allow him to clear his
mind ahead of the next massive
challenge for England.
If you are going to succeed in
places like India and Sri Lanka, I
can’t overstress how important it is
to understand and have prior experi-
ence of the conditions. It really is a
completely different world and with
FAULT! BIZARRE VENUS OUTFIT RAISES EYEBROWS
FOURTH seed Venus Williams battled into round three – wearing an eye-catching dress featuring a latticed midriff.
It’s not the first fashion crime to afflict sport, with fellow tennis star Andre Agassi a ‘90s offender (pic 1), while
other fauxs-pas include Stade Francais (2), golfer Payne Stewart (3), Hull City’s 1992/3 kit (4), former Mexico goal-
keeper Jorge Campos (5), and sprinter Florence Griffith-Joyner (6). Pictures: GETTY / ACTION IMAGES / REUTERS
Baltacha admit-
ted a lack of compo-
sure had cost her: “I
think I was trying to
overhit it, trying to go for
tighter margins, and in the
second set I realised I didn’t have to.”
World No1 Caroline Wozniacki
his low, slow off-cutters,
Collingwood will have a vital role to
play with the ball, never mind with
the willow.
Looking at the 15-man squad, my
one concern is the selection of
Stuart Broad. How fit is he? How
much cricket will England able to
get into him before the tournament
starts? He’s a huge part of this team
and were he to suffer a reoccurrence
of the side strain which ruled him
out of three Ashes Tests, England do
not have a like-for-like replacement.
I’ve been very impressed with
Ajmal Shahzad, whose been selected
as the back-up seamer, but he’s dif-
ferent to Broad and is nowhere near
as experienced. Bowling at the death
is a unique skill – one he’s not had
much time to master.
WORLD CUP SQUAD | ENGLAND
Andrew Strauss (capt), James Anderson,
Ian Bell, Tim Bresnan, Stuart Broad, Paul
Collingwood, Eoin Morgan, Kevin
Pietersen, Matt Prior (wk), Ajmal
Shahzad, Graeme Swann, James
Tredwell, Jonathan Trott, Luke Wright,
Michael Yardy.
made it safely into the third round
with a ruthless victory over American
Vania King 6-1, 6-0.
In the men’s draw Roger Federer
battled past Frenchman Gilles Simon
in a tense five-setter.
Federer, the defending champion,
took the first two sets before Simon
SPORT | IN BRIEF
Cosmos role for Cantona
FOOTBALL: Former Manchester United
great Eric Cantona has been named direc-
tor of soccer at American side New York
Cosmos despite the club not currently
having a team or a stadium. Cantona, 44,
said: “It’s a wonderful project. It’s kind of
a mix between football and art.”
Kauto Star suffers infection
HORSE RACING: Kauto Star, the beaten
King George VI Chase favourite, has a
Results
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email sport@cityam.com
27
1 2
3 4
5 6
fought back to level the match. The
Swiss eventually sealed victory 6-2, 6-
3, 4-6, 4-6, 6-3.
Novak Djokovic, third seed and the
winner here three years ago, is also
through to the next round after beat-
ing Croatian Ivan Dodig in four sets 7-
5, 6-7 (8/10), 6-0, 6-2.
“low-grade infection” trainer Paul Nicholls
has revealed. Tests after Saturday’s shock
defeat had revealed “signs of inflamma-
tion” Nicholls said on Twitter, adding that
“antibiotics and a few easy days” was the
prescribed treatment.
Ajmal signs for Worcestershire
CRICKET: Worcestershire have confirmed
Pakistan spinner Saeed Ajmal, 33, as their
overseas player for the second half of the
2011 season.
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