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n NIKKEI 225 FALLS 5.8 PER CENT IN EARLY TRADING n BOJ PUMPS £53BN INTO MONEY MARKETS
A girl wrapped in a
blanket surveys the
devastation in
Ishinomaki, north-
east Japan.
Picture: REUTERS
BY STEVE DINNEEN The Bank of Japan (BoJ) this morn- stock of yen on the expectation of duction at eight factories. overheating.
ing injected seven trillion yen (£53bn) high demand from insurers and The death toll yesterday was The UN said the situation is no
JAPANESE markets were hammered into the economy via its market oper- companies working on rebuilding thought to be at least 10,000, with longer a serious threat but Kan
this morning as traders scrabbled to ations in an attempt to shield its frag- the country’s infrastructure. Prime aid workers working into the night stressed the administration is still
offload exposure to the devastating ile recovery and ensure there is no Minister Naoto Kan said he would recovering more bodies. In the port closely monitoring it.
Japanese earthquake. disruption to the banking system. It is take firm action against speculative of Minami Sanriku in Miyagi prefec- At least 1.4m people are without
The Nikkei was down a staggering thought the central bank has invest- currency trading. ture around 9,500 people were miss- running water. Aid agencies are now
5.8 per cent in early trading to ed in assets ranging from govern- The cost to the insurance industry ing out of a population of 17,000. worried waterborne diseases could
9,656.71, with stocks in firms includ- ment bonds to private debt. is likely to run into tens of billions, At least 590,000 were living in tem- quickly spread as the sea of sludge
ing Nissan, Honda, Sony and energy It will today announce an emer- with the Japanese government tak- porary shelters last night, with contaminates reservoirs.
giant Tepco – the owner of one of gency “quake budget”, although its ing the lion’s share of the hit due to a 210,000 evacuated from the area sur- A further 2.6m people are without
Japan’s damaged nuclear plants – all monetary options are limited by the scheme providing state insurance to rounding the Fukushima nuclear electricity and the government has
untraded due to heavy sell orders. fact interest rates are already at virtu- re-insurers for earthquakes. power station. introduced rolling blackouts in
The market could fall further when ally zero. Toyota, the world’s biggest carmak- Fears of a full-scale meltdown per- Tokyo and the surrounding areas in a
the backlog of sell orders are The yen touched a four-month high er, and Nissan have both halted pro- sist, despite an ongoing operation to bid to ration energy.
processed throughout the day, against the dollar, with traders sell- duction in all of their Japanese pump seawater into troubled MORE: P2-5
FTSE 100 t5,828.67 -16.62 DOW ▲12,044.40 +59.79 NASDAQ ▲2,715.61 +14.59 £/$ 1.61 unc £/¤ 1.16 unc ¤/$ ▲1.39 +0.01 Certified Distribution
31/01/11 - 27/02/11 is 107,265
2 News CITYA.M. 14 MARCH 2011
reminded of our
extreme frailty
question marks over the reliability and
price of oil and gas. The world needs
more nuclear power plants, not fewer;
but such an expansion can only be
acceptable if plants remain safe even
in the most extreme circumstances.
For the global economy, such a
catastrophe comes at a bad time.
EDITOR’S LETTER China was already slowing and plenty
of observers will worry that Japan’s
ALLISTER HEATH woes will trigger a serious global slow-
down. But the impact on Japanese
HUMILITY is the only appropriate activity – while nasty at first – is likely
response in the face of the horrendous to dissipate relatively quickly. The real Main picture: The 30-foot tsunami crashes
human tragedy, grief and destruction problem will be that Japan’s govern- over a flood barrier in the fishing port in
unleashed on Japan. We are fortunate ment will borrow even more, adding Iwate prefecture on Friday
to be living in Britain, a temperate to its already huge national debt. This Opposite: The damaged roof of a reactor
country largely immune from the could rattle credit rating agencies, for (left) is seen next to an undamaged reactor
destruction regularly unleashed by good reason. at the Fukushima Daiichi nuclear plant
natural forces on the rest of the world. Mark Skidmore, an economist at after an explosion
With the death toll mounting towards Michigan State, and Hideki Toya, from Pictures: REUTERS
ever-more horrific levels, it will take Nagoya City University, examined data
weeks to ascertain the human cost of for 151 countries over 1960-2003. Those
night. This is no Chernobyl. Yet many GDP for the first quarter of 1995 rose WORLD ECONOMY and led to approximately £62bn worth
questions will rightly be asked about at an annualised rate of 3.4 per cent. BY JULIAN HARRIS of damage. ● Stock markets
the positioning and security of the Even though one of Japan’s great cities Japan’s economy shrank by 0.3 per The Nikkei fell by as much as 5.8 per
affected reactors. All countries that lay devastated, this didn’t even register JAPAN’S ability to cope with the eco- cent in the final three months of 2010, cent in early trading this morning to
operate nuclear power plants need to in GDP data. Similarly massive catas- nomic costs of last week’s earthquake while unemployment is touching five 9,657. After the Kobe earthquake in
use this as an opportunity to review trophes, such as 9/11, also didn’t have and tsunami was called into doubt by per cent – notably high by Japanese
safety standards and tighten up on anything like as large a direct econom- analysts yesterday. standards. Hopes of a rebound in
1995, the Nikkei fell 5,000 points over
procedures. This is vital: the last thing ic impact as was originally feared. The “The timing of the disaster could growth have been disrupted by the six months.
we need is this catastrophe to discredit real story is one of appalling human not have been much worse,” said John natural disaster, according to econo-
nuclear energy at a time of growing suffering, not economics. Higgins of Capital Economics. “Japan’s mist Chris Scicluna of Daiwa Capital. ● Economic recovery
It is worth recalling what happened economic recovery has lost momen- “But that same disruption – as well Japan’s economy shrank 0.3 per cent in
after Kobe. The Nikkei fell 6.6 per cent tum and a large part of the reconstruc- as cost pressures on the construction the last quarter of 2010. After Kobe
in the first week, 5.26 per cent during tion costs will add to the government’s sector during the rebuilding phase – GDP still grew by 0.8 to 0.9 per cent
the next month, and 15 per cent over significant debt burden.” could help to accelerate the end to per quarter in the following three quar-
the next three months. Six months Japan’s public debt dwarfs most Japan’s deflation that we had expected ters of 1995, before dipping again.
later, it had lost 25 per cent – but by peer countries and has already been to see in coming months,” he added.
7th Floor, Centurion House, the end of 1995, it had regained all of With an aging population posing an
forecast to reach 250 per cent of GDP ● Fiscal problems
24 Monument Street, London, EC3R 8AJ its losses. What about today? Tokyo in the next four years, leaving it threat- ever-growing burden on Japan’s public
Tel: 020 7015 1200 Fax: 020 7283 5334 Government debt is around 200 per
opened heavily down, suggesting ened by credit downgrades. finances, rating agencies have sound- cent of GDP, posing a problem for
Email: news@cityam.com www.cityam.com shares may fall faster this time around. “The scope for fiscal stimulus is ed the alarm and warned of possible
reconstruction costs and blunting the
Editorial Japan is a huge importer of raw much less than it was in 1995,” said downgrades unless politicians bury
opportunity for fiscal stimulus.
Editor Allister Heath materials so a temporary drop in Higgins, referring to the Kobe earth- the hatchet and come up with a plan.
Deputy Editor David Hellier demand could push down the price of
News Editor David Crow oil and other commodities. Insurers
Night Editor
Business Features Editor
Katie Hope
Marc Sidwell
could be hit for $35bn, though a
Japanese government guarantee WHAT THE OTHER PAPERS SAY THIS MORNING
means the losses to the City may not
Lifestyle Editor Zoe Strimpel be as large as for a similar event in
Sports Editor Frank Dalleres another country. Japan is the second-
Art Director Craig Gaymer biggest holder of US government
Pictures Micha Theiner bonds, with $900bn in reserves. Some GREEK BANK SCUPPERS HOPES SERIOUS FRAUD OFFICE PLANS FERRARI ROARS INTO INDIA IN
Commercial of these will be sold to pay for repairs, OVER DEAL NEW KAUPTHING RAIDS PURSUIT OF THE SUPER-RICH
Sales Director Jeremy Slattery especially by Japanese insurers; there Alpha Bank, Greece’s third-largest The Serious Fraud Office is set to Ferrari is to start selling sports cars in
Commercial Director Harry Owen will be less demand for US Treasuries lender, has killed hopes of a merger launch a series of new raids connect- India this spring as it seeks to tap into
Head of Distribution Nick Owen in the months ahead, pushing up dol- deal with larger rival National Bank ed to the collapse of the Icelandic booming demand for luxury vehicles
lar yields. If overseas assets are sold of Greece, scotching the push by reg- banking system as part of the grow- in the third largest economy in Asia.
Distribution helpline and repatriated to Japan, this could ulators and the government for the ing investigation which saw Robert The Italian carmaker has signed an
If you have any comments about the distribution put upwards pressure on the yen. All country’s troubled banking sector to and Vincent Tchenguiz arrested in agreement with Shreyans Group of
of City A.M. Please ring 0207 015 1230, or email of this could be negated by the Bank of strengthen itself through consolida- their London homes last week. The India.
distribution@cityam.com
Japan: it will flood the markets with tion. SFO is believed to be planning a series
Editorial Statement yen, starting today.
So much for the economics. As Alice RETAILERS RUN OUT OF IPAD 2
of additional raids in the hope of
uncovering vital evidence on the
WHICHEVER WAY YOU LOOK AT IT
“ENGLAND FACES HUGE SHORTAGE
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints Morse Earle once wrote, “Yesterday is WITHIN HOURS 2008 failure of Kaupthing. OF HOUSES BY 2025”
Commission. The PCC takes complaints about the history. Tomorrow is a mystery. Today Many retailers and Apple stores ran England could face a housing short-
editorial content of publications under the Editor’s is a gift. That’s why it is called the pres- out of the computer company’s sec- JON MOULTON BUILDS £200M age equivalent to the entire housing
Code of Practice, a copy of which can be found at ent.” As Japan mourns its dead, the ond-generation iPad tablet within GREEN ENERGY FUND stock of Birmingham, Liverpool and
www.pcc.org.uk
rest of us could do worse than to hours of its first availability, suggest- Jon Moulton, the venture capital vet- Newcastle unless there is a “funda-
Printed by Newsfax International, reflect on such wise words. ing that initial sales could surpass eran, is to launch a £200m invest- mental review of housing policy”,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS allister.heath@cityam.com those of the first version. Queues in ment fund to focus on sustainable according to the Institute of Public
Follow me on Twitter: @allisterheath America wrapped around city blocks. energy and infrastructure. Policy Research.
CITYA.M. 14 MARCH 2011 News 3
Bank of Japan
Nuclear fears injects ¥7trn to
at Fukushima soothe markets
▲
WORLD ECONOMY
▲
ENERGY
BY MARION DAKERS 10km zone around nearby injected a record 7 trillion yen (£53bn)
Fukushima Daini around 180 miles into the money markets to soothe
JAPANESE Prime Minister Naoto Kan north-east of Tokyo, the IAEA said. nerves following the devastating
this morning said the situation at Radiation was also 400 times the effects of the earthquake and tsuna-
8E8CPJ@JcA8G8EËJEL:C<8IGC8EKJ the country’s damaged nuclear normal level at the Onagawa plant, mi.
FeX^XnX power plants remained “worrisome”, where a state of emergency was The meeting’s conclusion was
IX[`fXZk`m`kp although officials said pressure declared, but authorities said the brought forward 24 hours in response
\oZ\\[jefidXc inside a third damaged reactor was reactors were under control. to the crisis, in a bid to ensure stabili-
c\m\cjYlk falling. The World Health Organisation ty in the markets.
i\XZkfijle[\i The International Atomic Energy said the public health risk from The amount, at 7 trillion yen, is
EL:C<8I
GFN<I Zfekifc% Authority (IAEA) yesterday warned of Japan’s atomic plants remained unprecedented and much higher
JK8K@FE further hydrogen explosions at “quite low” yesterday. than the usual 1 trillion to 2 trillion
Fukushima Daiichi, the site of a blast Japan has generated nuclear power yen injected in the wake of big mar-
on Friday that blew the roof off the since the late 1970s, and now gets ket-moving events.
=lblj_`dX
reactor building, as engineers vent around a third of its power from "The move is aimed at stabilising
K_i\\f]j`o the plants to relieve pressure caused nuclear sources. financial markets and ensuring
Zffc`e^jpjk\dj by overheating cores. The shutdown of some of the coun- smooth fund settlement," a BOJ offi-
[XdX^\[% Venting would release small levels try’s 55 plants has forced the govern- cial said.
)'bd of radiation, plant operator Tokyo ment into imposing rolling blackouts The Bank of Japan had already
\mXZlXk`feqfe\% Electric Power Company said. for 3m homes, starting this morning, promised “to do its utmost, including
Some of Fukushima’s plants are to prevent an all-out power outage on the provision of liquidity, to ensure
KfbX` being cooled using seawater after the damaged grid. the stability in financial markets and
water supplies were knocked out by Energy and climate secretary Chris to secure the smooth settlement of
Knff]k_i\\
the earthquake and tsunami. Huhne yesterday ordered a “thor- funds, in the coming week”.
Zffc`e^
A partial meltdown in reactor 1, ough report on the implications of In response to the last tragic earth-
^\e\iXkfijflk the site of Friday’s blast, remains a the situation in Japan and the lessons quake, which hit Kobe in 1995, the
f]fi[\i% possibility according to cabinet secre- to be learned” for UK nuclear power. Bank cut rates by 0.75 per cent. Yet
tary Yukio Edano. A US senator went further, calling such easing is not available to the
More than 200,000 people have for the country to “put the brakes on” Bank this time, with rates already as
been evacuated from a 20km radius the States’ nuclear power scheme. low as possible.
4 News CITYA.M. 14 MARCH 2011
JAPAN QUAKE Japan’s three largest car manufactur- source products from elsewhere.
BY RICHARD PARTINGTON ers Toyota, Honda and Nissan. British chip designer ARM Holdings
Companies with links to Japan could take a knock on hit, along with
MANUFACTURERS worldwide could could take a hit, as components need- other technology firms with links to
be hit for weeks to come following ed for assembly in Europe and the US operations in Japan.
Japan’s catastrophic earthquake and struggle to get through. The country last year accounted for
tsunami. David Leiker, analyst at wealth man- 13.9 per cent of global electronic
Leading technology firms and car ager Baird, said infrastructure dam- equipment factory revenue, according
manufacturers in the country have age could affect shipments. to data provider IHS iSuppli.
been forced to suspend production Several firms, including the world’s It produced $216.6bn (£134.8bn)
and close factories, including second largest chipmaker Texas worth of electronic equipment in
microchip producer Toshiba and Instruments, said they would look to 2010.
Insurers face
$35bn payout
▲
▲
confidence, rather than direct major PROFILE
financial consequences. US stock mar- BY STEVE DINNEEN
I
NEVITABLY, traders will be keeping Libya. The earthquake also played a to tackle Japan’s ageing population.
an eye on how the Tokyo market part, with Japan being the third largest His chance of survival seems to hang
closes. The earthquake hit just oil importer in the world. WTI sweet on the success of the res-
before the cash equity market on light crude dipped back below $100 per cue and clean-up
the Tokyo Stock Exchange closed on barrel, as low as $99.01 Political missions. Top priori-
Friday, but index futures traded in protests in Saudi Arabia – the world’s ty is to avert a
Singapore and then Chicago on Friday largest exporter of oil – will also be very nuclear disaster but
rightly indicated the benchmark closely watched. the wider recovery
Nikkei 225 index would open well Martin Slaney is director of GFT’s global deal- will take many years
below 10,000. The Bank of Japan met ing operations and, either way,
today and released 7 trillion yen to will come to
markets. define his
As sobering as the news from Japan term as
A woman searches for was, Western markets had a full day of Japan’s
supplies amid piles of trading to digest the potential econom- leader.
debris in Ofunato City ic impact of the quake and tsunami, NAOTO KAN
and the negatives for here may well be
6 News CITYA.M. 14 MARCH 2011
ENERGY
BY MARION DAKERS iour” after they voted down a plan for AAR websites.
TNK-BP to join a £10bn share swap and BP had said it “remains committed”
BP’S RUSSIAN partners ramped up exploration deal with Rosneft, the to finding a “business like resolution”.
their dispute over the firm’s Arctic Russian state-owned oil producer. Rosneft warned it “will undertake
exploration plans yesterday after a TNK-BP management criticised BP all measures to defend the rights of its
TNK-BP board meeting at the weekend for “misleading and inaccurate state- shareholders, with all the resulting
failed to reach a compromise. ments”. consequences”.
TNK-BP, a 50:50 joint venture “To date, BP has made no effort to An arbitration tribunal is expected
between BP and the Russian AAR con- rectify the situation created by its to report its decision within a few
sortium, criticised BP-nominated attempt to enter into a strategic weeks. AAR has a temporary injunc-
directors’ conduct during Saturday’s alliance with one of TNK-BP’s main tion halting progress on BP and
meeting in Paris as “not representative competitors, Rosneft,” the firm said in Rosneft’s deal.
Diageo chief executive Paul Walsh hopes to snap up Stock Spirits Picture: GETTY
Diageo eyes
bid for Polish
vodka maker
▲
▲
MIDDLE EAST CRISIS
BY STEVE DINNEEN a round red mark on his chest, which and Tunisia.
he said was sustained when a tear gas Meanwhile international calls for a
PROTESTERS in Bahrain barricaded canister was fired directly into him. no fly zone over Libya intensified. The
themselves around the financial dis- Protesters say they will not sleep as Arab League voted in favour of the no-
trict of the capital Manama yesterday, they maintain pressure on the belea- fly zone, with the UK and US praising
bringing the banking hub to a grind- guered regime. the decision while falling short of
ing halt. Bahrain, which is connected to guaranteeing action.
Police fought back, firing tear gas Saudi Arabia via a causeway, has been There are fears that imposing the
at the crowds in the most violent gripped by its worst unrest since the no-fly zone, which would be policed
clashes in the country since the mili- 1990s after protesters took to the by US and allied warplanes, could
tary killed seven protesters on 17 streets last month, inspired by upris- spark a third war in the region.
Police and protesters fought in violent skirmishes in Bahrain yesterday Picture: REUTERS
EU attack on
Irish tax rate
the interest rate Greece must pay on
▲
EUROZONE CRISIS
BY JULIET SAMUEL its bailout by one per cent, but to
refuse Ireland similar relief.
IRELAND’S newly elected Prime The pact agreed on Friday also
Minister Enda Kenny is facing an extended maturity on Greece’s
assault on Ireland’s sacrosanct 12.5 bailout debt to 7.5 years and, follow-
per cent corporate tax rate by ing the vote in favour of a Tobin tax by
Eurozone leaders, who declared on the EU Parliament last week, prom-
Friday that they would move to ised to develop a regional financial
enforce a uniform corporate tax transaction tax despite warnings that
regime across the region. such it could devastate European
In negotiations intended to resolve trade.
the sovereign debt crisis, Eurozone In a major German concession, the
ministers refused to lower the puni- pact also boosted the main Eurozone
tive interest rates on Ireland’s €85bn bailout fund’s ability to lend out up to
bailout if it does not bring its tax its full €440bn (£382bn) capacity by
regime into line with the Eurozone guaranteeing more of its debt. The
norm of around 24 per cent. bailout fund was also given power to
The European Council declared intervene in primary sovereign debt
that the European Commission markets in exceptional circum-
“intends to present a legislative pro- stances.
posal on a common consolidated cor- The latter move will be welcomed
porate tax”, which could effectively by the European Central Bank, which
rule Ireland’s lower tax rate illegal. has been single-handedly propping up
The Council’s anti-Irish stance was Eurozone sovereign debt markets over
underscored by its decision to lower recent months. CNBC COMMENT: P9
12,000
A: 2008
250 B: 2009
9,000
C: 2010
executives to
6,000
200
3,000
0 150
A B C C A B C A B C A B C
-3,000
A B
share £350m
100
-6,000
-9,000
A: 2008 50
B: 2009
-12,000 C: 2010
Source:KPMG LLP (UK) 2011 0
-40,00 A B C A B C A B C A B C A B C
Barclays RBS Lloyds HSBC Std. Chtd Barclays RBS Lloyds HSBC Std.Chtd
Source:KPMG
▲
BANKING
receive much more and some much 50
p 42.85 BY JULIET SAMUEL
It says that the UK’s biggest five between nations” will result in an
less than the average. 11 Mar banks would have to have raised “unlevel playing field” for banks on a
The revelations are sure to stir con- BANKS need to double their core capi- £577bn in 2009 in order to comply range of vital issues, including capital
46
troversy, with Clegg telling Liberal tal in order to comply with Basel III, with Basel III, making capital-raising a requirements, remuneration and
Democrats yesterday that he wants to according to KPMG’s annual bench- top priority for 2011. structural changes.
make banks “the servants of the econ- 42 mark report on UK banks. In addition, KPMG estimates that Banks are also having to shift their
omy, not the masters”. The report warns that despite a under the FSA’s stringent new liquidi- funding sources towards retail
Under the terms of the Merlin deal recovery in profits (see chart above) ty regime, £600-£700bn is now “tied deposits, which are regarded as more
negotiated with the Treasury, RBS will 38 and a marked drop in impairments up in liquidity buffers” in the UK. “sticky” and stable. But the competi-
also reveal the pay of its top five non- across the board, new capital and liq- The report also warns that despite tion for deposits has narrowed interest
board executives. None of them are 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar uidity requirements will throw up bar- attempts to coordinate international- margins (see chart above).
A Daimler Brand
Official government fuel consumption figures in mpg (litres per 100km) for the C-Class range: urban 13.8(20.5)-45.6(6.2), extra urban 29.4(9.6)-
70.6(4.0), combined 20.8(13.6)-58.9(4.8). CO2 emissions: 316-127 g/km. Model featured in image is a Mercedes-Benz C 180 CGI Executive SE Saloon (manual) at £26,050 on-the-road with optional
metallic paint at £645.00 (price includes standard UK delivery charge (£515.00 incl. VAT), new vehicle registration fee (£55.00), number plates (£25.00 incl. VAT) and fuel (£50.00 incl. VAT)). All payments subject to VAT. Finance example based on a Mercedes-Benz
C 180 CGI Executive SE Saloon (manual) on a 36 month (3+35 profile) Mercedes-Benz Operating Lease agreement, excluding maintenance. An advance payment of £897.00 and a £180.00 acceptance fee is payable in addition to and at the same time as the first
rental. Based on 10,000 miles per annum. Excess mileage charges may apply. Rental includes first year’s Road Fund Licence only. Written quotations available on request, including alternative contract lengths and mileages. Credit provided subject to status by
Mercedes-Benz Financial Services UK Limited, MK7 8ND. Guarantees and indemnities may be required. This finance offer is available on C-Class Saloon models ordered/credit approved from 18th February 2011 and registered by 31st March 2011 excluding
MY802, AMG and special request engines. Offers cannot be used in conjunction with any other published offer from the Retailer. Offer subject to availability. Terms and conditions apply. Prices correct at time of going to press (03/2011).
CITYA.M. 14 MARCH 2011 News 9
W
HY is it that the Eurozone’s problems and prevent the inevitable announced it will implement anoth- on the EU/IMF bailout package. He much to be done before the formal
leaders will only make a defaults that are coming for Greece, er round of austerity is more politics holds many more cards than the likes summit on 24-25 March.
decision when they have Ireland, Portugal and others. than economics. Jose Socrates’ gov- of Sarkozy gives him credit for. That’s Guy Johnson presents European Closing Bell
their back to the wall? Indeed, the fact that the new pro- ernment seems to be putting political because if Dublin takes the sensible on CNBC
NEWS | IN BRIEF
First could axe Western route Vodafone steps up Verizon deal
Transport operator FirstGroup could Vodafone and its US partner Verizon plan
hand back its First Great Western rail to step up their partnership by combining
contract three years early in a bid to save more parts of their businesses and shar-
£800m. The company, whose rail unit ing some equipment costs. They are
operates the £1.1bn franchise which runs examining plans to pool parts of their
into central London from Wales and the enterprise divisions and buy network
west of England, is looking at activating equipment together. However, sources
a break clause in the contract allowing it close to the firm said no immediate
to terminate the franchise in 2013. changes will be made.
The panel line up at Evershed’s Women of the World debate at the Southbank Centre
That’s one step ahead of the coali- West End and two round the corner
tion government’s Equality Act, which from the Bank of England – although
will allow City bosses to discriminate he has ruled out 14 Cornhill, home of
positively towards minorities from Green’s oyster bar and Aviva Investors.
next month. “There are a few reasons why that
However, the majority of the panel wouldn’t work for me,” he said. One
were in favour – if only to prevent top of them being the fact the building is
lawyers jumping ship due to City owned by Libya’s sovereign wealth
firms’ “long hours culture”. Sandie fund, the Libyan Investment
Okoro, general counsel at Barings Authority, and Less’s new club would
Asset Management, noted: “Many become a tenant of Gadaffi? “I could-
good female lawyers are leaving law n’t possibly comment.”
firms before achieving partnership
and heading for industry, where diver-
sity has progressed further.” WHO DARES WINS
THE City and horse racing have long
enjoyed a close relationship, but today
DIFFERENT CLASS the two worlds moved even closer
HAVE you ever wondered how Secrets, with the launch of the first-ever tie-up
London’s largest table-dancing chain, between an old-school bookmaker and
got its name? Well, as owner Stephen a financial spread-better.
Less told The Capitalist, it is because he Bringing the Square Mile to Mayfair
was watching the Mike Leigh film is Fitzdares Financial Spreads, a part-
Secrets & Lies in the kitchen of his nership between private bookmaker
Hammersmith home when his busi- Fitzdares and Financial World Spreads
ness partner rang asking him to con- that will allow Fitzdares’ members to
firm the name of the enterprise. bet on 3,000 City markets alongside
So all eyes should start scanning the the existing spread-betting and sports
TV schedules for clues as to what Less services.
will call his next entertainment “This is all about enabling those
launch: a cocktail bar for City boys with a taste for risk to exercise it wher-
that will attract a “classier” crowd ever they want,” said Conor Foley,
than his table-dancing haunts. chief executive of World Spreads, on
Less has yet to negotiate a deal for the “one-stop betting environment”.
the venue, set to open next year, but Cheltenham will never be the same
he is looking at four locations in the again.
mahiki
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£1,100.00
Louis Roederer
pagne – 13, to be precise, although The Cristal – Magnum:
Capitalist hears the party gave some to Louis Roederer
£1,100.00
other tables. Throw in a Rehoboam of Grey Cristal – Magnum:
£1,100.00
Goose, containing 4.5 litres of French-dis-
tilled vodka, and you have the makings of a Sub total:
£45,170.00
record-breaking night. Service @ 15%:
£6,775.50
Total: £51,945.50
12 News CITYA.M. 14 MARCH 2011
▲
DEBT ridden retailer JJB Sports is plot-
ting a further £65m fundraising in an
effort to reverse its recent financial
woes.
The Wigan-based firm will tomor-
row announce details of a share offer-
▲
LUXURY BRANDS Morgan Stanley to complete the strate- ing to raise the cash, which is expected
BY RICHARD PARTINGTON gic review. to come from existing investors.
The review, which is due this spring, It will use the funds to give it work-
THE FOUNDER of the Jimmy Choo has considered holding on to the com- ing capital as it goes through a tough
fashion brand has hired bankers to pany, a sale, or spinning it off in a restructuring process.
advise him on buying back the compa- stock market listing. JJB chairman Mike McTighe wants to turn the retailer around. Picture: REX JJB’s five leading shareholders have
ny he set up. However, it is understood that agreed to the plan following talks,
Jimmy Choo, the Malaysian- the review is likely to recom- which comes within three months of a
born shoemaker who founded mend a sale. OLIVER HEMSLEY stockbroking firms. separate £31.5m share offering.
the eponymous brand with Choo, who started produc- Under his leadership, the broker has Chairman Mike McTighe is spear-
Tamara Mellon in 1996, could ing designer shoes from his NUMIS landed deals with increasingly presti- heading the refinancing alongside his
lodge a £500m bid for the Hackney workshop in 1986, gious clients, including marketing firm chief executive Keith Jones.
company. could seek to work alongside Aegis Group last year. He is thought to be considering
He has appointed Daniel private equity backers in Prior to founding Numis, he worked plans to give directors shares in the
Stewart to advise on his order to repurchase the as a marine underwriter at Lloyd’s for company as he looks to turn the busi-
options in the firm. firm. the Brockbank Group. ness around.
The firm’s private He sold his 50 per cent The Lazard advisory team is being led JJB, which holds a £25m facility with
equity owner stake in the firm in 2001, NUMIS chief executive Oliver Hemsley is by managing director in investment the Bank of Scotland, has struggled
Towerbrook Capital is whilst Mellon retained leading the advisory for JJB’s share banking Melanie Gee. Managing direc- under the pressure of its debts and fal-
in the process of her 15 per cent stake offering. His team, which also includes tor in UK capital markets Charlie tering sales.
reviewing its options and leadership of the former HSBC banker Heraclis Foreman is also working to advise JJB The retailer needs cash to pay credi-
for the business, firm. Economides, will oversee the process on its restructuring process. tors, including landlords and share-
which could include Choo remains asso- alongside US investment banking giant The bank has handled several signifi- holders, to support its second
a sale. ciated with the compa- Lazard. cant share offerings this year already, company voluntary arrangement in as
Last September, ny as a consultant Hemsley founded Numis in the early including the initial public offering of US many years.
the firm appointed designer, offering 1990s, growing his business into one of hospital operator HCA Holdings for JJB suffered a blow last week after
investment bankers Jimmy Choo could launch a £500m bespoke footwear to the most successful independent British $3.79bn (£2.4bn). rival JD Sports walked away from a
Goldman Sachs and bid for the eponymous shoe label celebrity clients. possible takeover.
CITYA.M. 14 MARCH 2011 News 13
L
AST week I joined 15,000 leading However we also face many difficul- ty market – particularly in important the City of London has to take a wide- al exhibitors present in Cannes, we can-
practitioners from across the ties, not least creating a modern and business centres – often reflects the range of seemingly disparate issues – not afford to take our eye off the ball
property industry at MIPIM, the sustainable property offer and infra- state of the economy overall; interna- from the ongoing unrest in the Middle for a single second.
international property conference structure network amidst a medieval tional developers and financiers would East and the future reform of the bank- Stuart Fraser is the Policy Chairman at the
hosted in Cannes every year. road network that is home to a num- not invest in property if they were not ing system to narrower, more sector- City of London Corporation.
Morale at UK
factories hits
record high
surprising,” said Chris Williamson of
▲
UK ECONOMY
Markit, which compiled the data.
BY JULIAN HARRIS “The survey therefore suggests that
CONFIDENCE among British manufac- a reasonable pace of economic growth
turers has hit a record high, business should be sustained in 2011, with
consultancy KPMG said today. increased private sector hiring offset-
Over two thirds (68 per cent) of sur- ting some of the looming public sector
veyed manufacturers expect business job cuts,” he added.
activity to increase, leading to the However, inflationary pressures will
highest positive balance (60.4 per cent) increasingly be passed onto con-
since the survey began in 2002. sumers, the report suggested.
And morale in the service sector is Manufacturers forecast the sharpest
also improving, the report showed. rate of factory gate price inflation
Companies in the UK’s largest sector since the start of the survey. Input
anticipate the strongest expansion of price expectations also hit a record
business activity since April 2007. high, with a positive balance of 67.8
“UK business now appears to be per cent of respondents anticipating
preparing itself for growth,” said more price hikes.
KPMG’s Malcolm Edge. “Although
recovery is by no means yet assured, ANALYSIS l Manufacturing Business Activity
there are enough positive signs to 70 Net Balance %
mean that businesses need to be plan- 65
ning for better times.” 60
Employment expectations in the 55
service sector are also on the up, rising
50
to the highest survey balance (+23.2
per cent) since April 2007. 45
While positive data from British 40
manufacturers has become a common 35
narrative of the economic recovery, 30
service sector optimism was “more Oct 09 Feb 10 Jun 10 Oct 10 Feb 10
NEWS | IN BRIEF
Tory MP calls for growth policies Cost of credit hits manufacturers
Conservative MP Charlie Elphicke will The cost of credit has shot back up this
today call for the main rate of corporation year, manufacturing body EEF revealed
tax to be cut to 19 per cent, along with today. In the first credit survey since the
nine other recommendations to chancel- Project Merlin announcement last month,
lor George Osborne. The MP for Dover the balance of respondents reporting a
and Deal is expected to also call for rise in credit costs jumped to 32 per cent,
stamp duty to be scrapped on share from 19 per cent in the final three months
transactions, and the smaller business of 2010. “While there appears to have
growth fund to be floated on the London been some easing in availability, for many
Stock Exchange. Elphicke’s suggestions smaller companies the question is still ‘at
will be published by the Centre for Policy what cost?’” said EEF’s Lee Hopley.
Studies think tank.
Think tank attacks tax changes
West End retail sales take a knock An online tax calculator has been
High street sales in London’s west end launched ahead of chancellor George
took a hammering in February, falling by Osborne’s budget by the think tank
0.5 per cent compared to the same time Reform. Announcing the new device,
last year. The figures, released today by Reform attacked the “fairness policies”,
the New West End Company, mirror arguing that punitive taxes on high earn-
recently reported negative sales data ers increase the tax burden on middle and
from across the country. low earners.
14 News
BEST OF THE BROKERS
ANALYSIS l F&C Asset Management F&C ASSET MANAGEMENT
90 p
Deutsche Bank has downgraded the asset
77.80 manager from “hold” to “sell” with a target
11 Mar
86 price of 76p. The broker sees two new risks
from the firm’s results last week that are not
82 reflected in the current share price: a decline
in equity investment performance and a dis-
78
pute with key client Millennium BCP. DB sees
potential upside in F&C getting involved in
14 Feb 21 Feb 28 Feb 7 Mar the sector’s ongoing consolidation.
ANALYSIS l IG Group IG GROUP
480 p 465.00 Canaccord Genuity rates the spread betting
11 Mar
firm “hold” and has lowered its target price
to 482p. The broker notes that volatility was
460
stronger in February, helping to boost rev-
enue, but that it is unlikely that client activity
440 will remain this strong through the next
quarter. The broker has trimmed its earnings
forecasts for the year by two per cent to
14 Feb 21 Feb 28 Feb 7 Mar £163.9m on slower revenue growth.
ANALYSIS l Home Retail Group HOME RETAIL GROUP
240 p UBS rates the owner of Argos and
195.60 Homebase “neutral” with a 12-month target
230 11 Mar
price of 190p, down from 210p. The broker
220 was surprised by cost growth at the group in
210
its results last week, which has led to a
£50m cut in UBS’s pre-tax profit forecasts to
200 £195m. UBS assumes that the firm will
190
retain its dividend, but sees a greater medi-
14 Feb 21 Feb 28 Feb 7 Mar um-term risk.
To appear in Best of the Brokers email your research to notes@cityam.com
,". ,**+ # 1'-* ,*"& ,' ,! &0, $.$ "&
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| 8-9 APRIL 2011
'* +-++ '( ,*"& Queen Elizabeth II Convention Centre
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$' /"$$ +!* ,!"*
,!&")-+ & +,*, "+ Discover complete show details, learn how to attend,
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CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with
firm’s operations in Europe, the Middle expansion of Russell’s European index firm’s private equity practice as a part-
Irwin Mitchell East and Africa. Fass joins Macquarie business, following the appointment of ner in London. Baldwin joins Ropes &
The national law firm has appointed Sue after ten years with Deutsche Bank in Scott Stark to the role of director of Gray from Jones Day in London, where
Weatherson as its new director of risk and London, serving in roles including Russell Indexes Europe. he was a partner in the corporate
compliance. Weatherson joins from Withers European head of Deutsche Bank’s group. Prior to that, he was a partner
LLP and will report to Irwin Mitchell’s national global banking division. Unicorn AM at Cadwalader, Wickersham & Taft.
managing partner, John Pickering. Weatherson Investment management company
will have overall responsibility for ensuring the Russell Investments Unicorn Asset Management has Saxo Bank
firm complies with its regulatory requirements The equity index provider has hired two appointed Fraser Mackersie as co-man- Saxo Bank Group has reappointed
and managing risk. She replaces partner Louise new associates to its EMEA index team. ager of its Free Spirit Fund. Mackersie Steen Jakobsen to the position of chief
Sykes, who will now lead Irwin Mitchell’s Wills, Gareth Parker has been appointed as has been promoted from the firm’s economist, after a period of two years’
Trust and Estate Disputes team. director of index research and design, Investment Team. absence where he worked at Limus
and Stephane Degroote has joined as Capital Partners. Prior to his departure
Macquarie Group agement services provider has appoint- regional director of sales. The new roles Ropes & Gray from Saxo in early 2009, Jakobsen was
The banking, investment and fund man- ed David Fass as chief executive of the have been created to support the Peter Baldwin is joining the global law with the firm for almost nine years.
To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
VAT fuel hike Jeremy Hunt said he had asked for independent advice from two regulators
latory burdens. Employees at these firms
would be unable to request flexible
working, for example, and could see
their maternity or paternity leave enti-
tlement cut. The government is hoping
that businesses will use the money they
save from not having to comply with the
“cost of living crisis” for middle onerous rules to take on new staff. But
▲
POLITICS
for an immediate reversal of the coali- March. POLITICS Hunt decided not to refer the bid whose outcome could strain the 10-
tion’s rise in VAT on fuel. Balls claims the government could BY DAVID CROW after News Corp offered to spin Sky month-old coalition. “These are testing
He admitted the surge in fuel prices fund the cost of reducing fuel VAT News off into an independent, pub- times for us as a party,” Clegg said as he
was happening because of unrest in with some of the proceeds from the JEREMY Hunt, the culture secretary, licly-listed company. closed a party conference in Sheffield.
the Middle East, which has pushed up bank levy, which will raise an extra was yesterday forced to defend his Yesterday Hunt dismissed sugges- He was speaking a day after 3,000
the price of oil, but insisted the chan- £800m after it was hiked last month. role in News Corp’s bid for BSkyB, tions he had waved the bid through demonstrators angry at government
cellor had scored an “own goal” by But Tory MP Matt Hancock, former- after an alliance of media companies to ensure Murdoch’s newspapers sup- spending cuts had protested outside the
raising VAT in January. ly an adviser to Osborne, said Labour accused him of acting in an “unprece- port the Tories at the next election as central city hall where party members
Balls is only calling for a reversal of had already spent the bank levy pro- dented manner”. “conspiracy theories”. were protected by a steel fence and a
the rise in fuel VAT, which would cost ceeds “ten times” over through various The alliance, which is made up of He added: “When James Murdoch phalanx of police officers. The party’s
the exchequer some £700m, but unfunded spending commitments BSkyB and News Corp rivals like BT came forward with his proposal to poll rating has more than halved to
refused to say whether Labour would and tax cuts. and the Telegraph Media Group, said hive off Sky News, I did something about 10 per cent since joining the
reverse the entire VAT hike were it in He said: “Ed Balls has missed yet the culture secretary was wrong not that I didn’t have to do. I asked for Conservatives in coalition. “Yes, we’ve
power. another opportunity to bring any cred- to refer the issue to the competition independent advice not from one reg- had to toughen up. But we will never
The Labour party has warned of a ibility to Labour’s economic policy. commission. ulator but from two.” lose our soul,” Clegg said.
80
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| Entrepreneurs
Living up to your
company’s promise
Marketing guru Gary Moss knows how to
perfect your branding, says Donata Huggins
D
ELIVERING on your brand’s promise
2
might sound more fluffy than it is
useful. But you would be mistaken.
Customers’ perceptions of whether HAVE A (SIMPLE) VISION
or not your business is offering them what
they expected are bound to have an effect We’ve all heard people quote the “keep it
on profits. But how does one go about simple, stupid” catchphrase, but this is
measuring this sort of thing, not to men- vital for creating branding that customers
tion preventing it from harming your recognise, with a promise that they I solemnly swear always built from the inside out and
5
business? Marketing guru Gary Moss of believe your company delivers on. Moss to offer value for require cultural change.” Every branding
Brand Vista explains. says: “If you can’t say it in one line, it’s not money re-vamp should include staff training. Moss
worth having. And businesses should says: “Simply changing a logo and sending PLAY FAIR
never have more than four or five brand Picture: GETTY out new marketing materials never works.”
1
values.” Brand values should be straight- Sounds obvious, but always offer value for
forward, basic things such as low prices or money. No marketing or advertising will
BE BRUTALLY HONEST
4
high quality service. It all needs to be sim- ever trick customers into thinking your
ple and mean something to stick in the service is great. Your branding needs to
They say you have to be cruel to be kind. consumer’s mind. WATCH CLOSELY reflect the fact that you offer genuine value
This is especially true when it comes to for money.
marketing a product or service. Moss says Prevention is always better than cure.
3
you have to get brutally honest advice: “If Using surveys and regularly talking to cus-
something is rubbish, someone needs to tomers and staff are the simplest and most
say it is.” The business in question, he CHANGE FROM THE BOTTOM UP effective ways of catching your customers’
explains, needs to hear it more than any-
one else. This can only happen by asking Make sure all branding and marketing fac-
changing perceptions early. Media moni-
toring services take a more sophisticated Entrepreneurs:
your customers and staff for their opin-
ions as often as possible.
tors in the frontline staff – after all, they
deliver it. Moss says: “Brand values are
look at this, but cost around £20-25,000
for a year. now on Mondays
CITYA.M. 14 MARCH 2011 17
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18 Wealth Management | Spread Betting CITYA.M. 14 MARCH 2011
THE TIPSTER
IBEX GETS
SKEWERED
Going for gold at the
T
BY MOODY’S
HURSDAY’S credit rating down-
grade by Moody’s for Spain did the
local equity market few favours and
while we may still be some way
Cheltenham Festival
above the 12 months lows of May 2010
when the Spanish stock index, Ibex, hit
8,562, the near term challenge will likely
be holding onto the psychologically signif-
icant 10,000 level. The current IG Index
price on the Spain 35 Daily cash is
10,395-10,400
Although insurers have had a great
few months, up 30 per cent since last
December, the latest news on the tsuna-
mi and earthquake that have just hit
Japan will not be welcomed by the sec-
tor. Japan is likely to be a big market for
many of the big insurers and they have
all taken a hit since the news has come
out.
Prudential has raised its dividends by
20 per cent on the back of operating
profits up 24 per cent to £1.9bn for
2010. However, this news from Japan
may have thrown a short term spanner
in its works. Capital Spreads quotes
722.1p-723.4p.
Financial services group Close
Brothers announced Friday that it was Study the going underfoot
selling its Close Brothers Offshore Group if you hope for a winning
for £29.1m to Kleinwort Benson. Close streak
Brothers will also update the market Picture: EMPICS
with its latest set of numbers on Tuesday
on the back of what has been a very
healthy six months for its shares, having
gained by some 30 per cent.
Any dips to the 825p-835p region
Four days of top racing gives a spread-betting opportunity, writes Ben Cleminson
could be used to buy some shares for
another run at 900p. Spread Co offers a
T
spread on Close Brothers of 863.9p- HE Cheltenham Festival is ner – is always a popular market as some races will need to be treated race win index, match bets and
866.7p. the biggest betting event of it provides an interest in every race with extreme caution. There are both jockey and trainer perform-
Craig Drake the year, and sports spread during the four days. Sporting always a number of hot favourites, ance. Match bets are excellent if
betting firms like Sporting Index’s spread is 330-340 which but they often get turned over and you have a strong opinion that one
Index, Extrabet and Spreadex means they are expecting total win- it would be no surprise to see some horse will do better than another.
always go to town at this meeting. ning odds of around 84/1 every day. upsets during the four days. A buy The firms will predict that one
With four days of top quality rac- Now, the racecourse has already at 340 therefore looks attractive. horse will finish x number of
ing, there are plenty of spread mar- started watering the track as they Winning distances (the distance lengths in front of another and you
kets to get your teeth into, some expect it to remain pretty dry next between the first and second horse) have the option to buy or sell that
lasting the entire festival and oth- week and that means the majority is another key market. Here, figure.
ers focusing on individual races or of the races are likely to be run on Extrabet quotes total winning dis- The key thing to remember is
performances. good or good-to-soft ground. tances at 102-110. It has probably that Cheltenham is a marathon not
Hopefully, some of you will be We all know how bad the weath- got that about right, although I a sprint and your positions can
lucky enough to sample the unique er has been this winter and the wouldn’t be surprised to see a num- change rapidly. There are plenty of
atmosphere of Prestbury Park this majority of key races have been run ber of close finishes this year and I opportunities for spread betters,
week but, if you’re stuck at your on soft or heavy ground. A number would be a seller rather than a but make sure you do your research
desk, fear not, there are plenty of of big meetings have also been buyer. and stick to your guns. Just because
opportunities to make money. abandoned, so the change in condi- The spread firms will go down one result goes against you doesn’t
Firstly, meeting SPs – the com- tions, and lack of match practice with their individual markets on mean you should change your
bined starting price of every win- for some, means that the form in each day and they will include the whole strategy.
WHY ENGLAND
How to ride the price VS GERMANY
IS A WINNER
rollercoaster for profit TOM HOUGAARD
CONSULTING ANALYST, INTERTRADER
T
HIS strategy hinges on using the TO TAKE A SHORT POSITION
Relative Strength Index (RSI) to l RSI rating should be a value greater ADMIT it. It’s an attention seeking title, playing on
alert you to over bought or over
sold market conditions, where
over bought and over sold situations sig-
nify a change in the trend. Typically,
when the RSI (see guide on the right)
than 70.
l A down candle should form and
close pushing the RSI rating to less
than 70.
l At that point, consider going short
I the emotions of every football fan in England since
1966. “England vs. Germany” is also a trading strat-
egy which seeks to play two stock indices against
each other. It is perfect for financial spread betting,
because you don’t have to factor in currency risk.
rises above 70, the market is over on the market price on the open of The FTSE 100 consists of 100 companies, of which
bought, while a reading below 30 repre- the next candle. 10 make up about 45 per cent of the index value. The
sents an over sold market. As a low-prob- German Dax consists of 30 stocks, representing the
ability/high-reward setup, with luck it creme-de-la-creme of German commerce and indus-
should eventually result in a big catch. try. Together, they are considered the two leading
At point A on the graph below, the stock indices in Europe.
market has fallen to a point where it Clem Chambers, the brilliant head of ADVFN and
may be considered to be undervalued even more brilliant technical analyst, taught me the
and may present an opportunity to buy. interplay between the two stock indices and how
At point B, the market has risen to the stocks are executed in block trades using volume-
point where it may be overvalued and weighted average price (VWAP). I realised that there
may present an opportunity to sell. is a statistical correlation between the two stock
indices significant enough to bet on.
TO TAKE A LONG POSITION I began to explore how to trade the two against
l RSI reading should be less than 30. each other in a straight arbitrage strategy, and came
l An up-candle should form and close up with the idea that if the two diverged by more
sending the RSI reading above 30. than 40 points from the previous night’s close, I
l At that point, consider going long on should short the one that was strong, and buy the one
the market price on the open of the that was weak.
The form in some next candle. Last Wednesday was a good example. The Dax
closed the night before at 7,164. The FTSE closed at
races will need to ANALYSIS l Over sold and over bought 5,974. Both indices were down about three to four
points on the day. On 9 March the Dax and the FTSE
be treated with 1.0300 $CAN
1.0200
B diverged by more than 49 index points. The Dax was
at one point up 53 points. At the same time, the FTSE
extreme caution. 1.0100
1.0000
was up only four points on the day. So I shorted the
Dax and bought the FTSE in equal amounts. The Dax
There are hot 1.9900
1.9800
closed at 7,131. The FTSE closed at 5,937. The spread
had gone from 1,243 points to 1,194 points. Although
1.9700
favourites, but 1.9600
1.9500
I did not capture all the 49 points on the table, it
serves to illustrate the strategy well.
they often get 1.9400
Now, let’s deal with “what can go wrong?” In one
sentence: where is your stop-loss? The answer is, you
1.9300 A
turned over and 1.9200
1.9100
can’t have a normal stop-loss. You have to use a mon-
etary stop-loss, and you have to be there to watch the
it would be no Nov 13th 25th Dec 17th 30th 2008 21st Jan 24th Mar 17th 27th
70
screen. In that sense, it is more suited to the short-
term traders of the City and beyond. Happy Trading.
surprise to see 60.0000 RSI
50.0000
The views and comments in this article are not the
views of InterTrader.com. The provision of this infor-
some upsets 40.0000
30.0000
30
mation should not be construed in any circumstances
as a recommendation or solicitation to buy or sell any
Source: GFT security or financial instrument.
Lifestyle
20 In association with CITYA.M. 14 MARCH 2011
| Travel
I
T is the depths of winter in
Austria and what am I doing?
Gracefully skiing down the Alps
or snuggling up in front of a fire
sipping Gluhwien? No, I’m dressed in
my bikini and boots, awaiting instruc-
tions to go into a sealed chamber with
a temperature of minus 130 degrees
for three minutes. I smile nervously at
my companion Victoria, who has
accompanied me on this trip; I may
not have fully explained this element
of the invitation to sample the delights
of the Tyrol’s health resorts. A lady in a
white coat – how very appropriate –
tells us to go into the first chamber,
where our bodies can get used to the
temperature drop.
It’s fine, and we are giggling; we try
the second chamber and after 30 sec- to the Wiesenhof Hotel & Medical Spa
onds we are leaping around trying to on the shores of Lake Achensee, a pop-
increase circulation while not touch- ular destination for summer hiking
ing the walls – who wants their muf- during and winter skiing. Our first
fin top frozen to an ice-chamber? A activity is cross country skiing. Now it
booming voice tells us to conserve looks so easy, but after falling over a
energy for chamber three, into which dozen times I am becoming a little
we soon relocate for the longest three grumpy; who knew those skis were so
minutes of my life. The boom boom of darned narrow? Victoria is faring bet-
Eurotrash music seems to make the ter and our skiing instructor has the
experience last longer. I have never patience of a saint.
been so cold, and no surprise there – After two hours we give in and
this is actually colder than the North make our way back to the hotel, all
Pole. We last for the full three minutes rosy cheeked for a restorative hot
(I would have given up after two had it chocolate and a warm bath. Lunch is
not been for Victoria). We are let out, from the healthy buffet – lots of sal-
exhilarated and buzzed. ads, soups and the more hearty foods
We’ve come to the Tyrol to sample – but we know we have work to do.
traditional winter activities and some The Wiesenhof spa has the usual
of the more off-the-wall health and facials and massage treatments to be
beauty experiences that are increas- expected, but a large emphasis is put
ingly popular around here. These are on a healthy heart. There is a Cardiac
good diversions for the reluctant skier, Wellness Centre that sets up packages
and a draw in the warmer months too. to cater for those with heart disease or
After arriving in Innsbruck we head in recovery from cardiac operations.
A quiet haven of
pure luxury in
the Lake District
Nothing beats a beautiful house on the
edge of its own lake, writes Katie Hope
T
HE old idea of Lake District hos- Gilpin Lodge has been established as
pitality is of floral-decorated one of England’s finest country
B&Bs offering weak tea and a house hotels for over two decades.
couple of cellophane-wrapped The Lake House is its newest slice of
Jammie Dodgers after your long hike. lavish accommodation, a six-suite
Go to stay at the Lake House at lodge set on a four-acre private lake. It
Gilpin Lodge, however, and the simply exudes luxury.
biggest problem is working up the To get there, it’s a two hour train
resolve to leave its elegant surround- ride from London to Oxenholme,
ings to explore the fells. from where the Lake House is a 20
Managed by two generations of the minute drive.
Cunliffe family, whose ownership of As soon as you walk in, the hustle
the building dates back to 1919, and bustle of London life seems a mil-
CITYA.M. 14 MARCH 2011 In association with 21
SKY SPORTS 1 BRITISH EUROSPORT 4.20am Four Weddings Steve: The Happiest Gay 5.30am-6am How Does That
SATELLITE & CABLE
6.30pm Sky Sports Years 6pm Champions Club 7.15pm 5.10am-6am Maury Couple in All the World Work?
7.30pm Live Football League Cycling 8.30pm Alpine Skiing 3.05am Reaper 3.45am The
10pm Sky Sports Years 11pm 9.30pm Live WTA Tennis BBC THREE OC 4.30am-6am Switched DISCOVERY HOME &
7pm Working Girls 8pm
Netbusters 11.30pm Soccer 11.15pm-12.30am Cycling
HISTORY HEALTH
AM 12.30am Football League Hotter Than My Daughter
7pm A Baby Story 8pm How THE EVENT
2am FIFA 2.30am Sports ESPN 8.30pm The Lock Up 9pm 7pm How the Earth Was Made
Clean Is Your House? 9pm CHANNEL4, 10PM
Unlimited 3.30am 6.30pm Talk of the Terrace How to Live with Women 8pm Pawn Stars 9.30pm Mud President Martinez and his chief of
Trauma Unit 10pm Untold
Watersports 4.30am Max 8pm Serie A 9pm ESPN Kicks: 10pm EastEnders 10.30pm 24 Men 10.30pm Pawn Stars staff charge the intelligence
Stories of the ER 11pm Critical
Power 5.30am-6am FIFA FA Cup 9.30pm ESPN Game Hour Panel People 11.05pm 11pm Warriors 12am Mud community with decrypting Thomas’s
Being Human 12.05am Family Men 1am Pawn Stars 3am Condition 12am Trauma Unit
of the Week 10pm Between satellite message.
1am Untold Stories of the ER
SKY SPORTS 2 The Lines 10.30pm Pardon the Guy 12.45am How to Live with MysteryQuest 4am Warriors
2am Critical Condition 3am
6pm Live Masters Tennis Interruption UK 11pm Live Women 1.45am 24 Hour Panel 5am-6am Ancient Discoveries
People 2.20am Hotter Than Real ER 4am Bringing Home
12am Boots ‘n’ All 1am Kings Major League Baseball 2am
of the Snow 1.30am World Baseball Tonight 3am ESPN My Daughter 2.50am Working DISCOVERY Baby 5am-6am A Baby Story
Golf Championship 2.30am Press Pass 3.30am Talk of the Girls 3.50am Being Human 8pm How Do They Do It?
Wonderful World of Golf Terrace 5am-6am WRC 4.45am-5.15am The Lock Up 8.30pm How It’s Made 9pm SKY1
Airplane Repo 10pm Dual 8pm Road Wars 9pm Ross
4am-4.30am PGA Tour
Classic SKY LIVING E4 Survival 11pm Monsters Inside Kemp 10pm A League of Their
7pm Ghost Whisperer 7pm Hollyoaks 7.30pm Friends Me 12am Bear Grylls 1am Own 11pm Mental 1am Miami
THE GADGET SHOW
SKY SPORTS 3 8pm Nikita 9pm America’s 9pm Glee 10pm Great British Deadliest Catch 2am SWAT 2.40am Glenn Martin,
CHANNEL5, 8PM
4pm Live Golf 9pm PGA Tour Next Top Model 10pm Bedlam Hairdresser 11pm Skins Weaponology 3am World War DDS 3.30am Lost 4.20am Four smartphones are put to the test,
Golf 10pm WWE 12am WWE 11pm Criminal Minds 12am 12.10am Scrubs 1.05am Two: The Complete History Guinness World Records Ortis Deley rides a road bike, and Suzi
1am-3.15am Live WWE: Late CSI: Crime Scene Investigation Accidentally on Purpose 3.50am Extreme Engineering Smashed! 5.10am-6am Sell Perry examines alarm clocks. Includes
Night – Raw 2.40am Charmed 1.50am Skins 2.45am Rick & 4.40am Raging Planet Me the Answer a guest appearance by the Hoosiers.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
QUICK CROSSWORD
SUDOKU KAKURO
26 16 8 6 41 3 22 23
27 14
12 13
Place the numbers from 1 to 9 in each empty cell so that each 7
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 12 13 14
35 16
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 12 13
above or to the left of it. 37 12
You can only use the digits 1-9 28
and you must not use the
3 38
11 30
same digit twice in a block. 18
The same digit may occur 39
24 10
more than once in a row or
column, but it must be in a 8
21 14
11
6 17 4
separate block.
16 17
25 15
29 28
ACROSS DOWN
1 Apply stiffening 1 Forest god (5)
WORDWHEEL C R
agent to cloth (6)
6 On the move (6)
2 Use water to
remove soap (5)
Using only the letters in the Wordwheel, you have 7 Passage through or 3 Fifty per cent (4)
ten minutes to find as many words as possible,
T R under something (6)
4 Cocktail made of
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 8 Chum (6) orange liqueur, lemon
juice and brandy (7)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E H 10 Cruz Beckham’s
older brother (5) 5 Prepared (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T S 13 Animal doctor (3) 9 Customary
observance (4)
QUICK CROSSWORD 1 2 7 39 8 4 6
15 Wrongdoing (5)
O U T O F T U N E C
8 6 9 73 5 2 1 SUDOKU 18 Go on board (6)
11 Talked indistinctly (7)
1 3 9 7
12 Bowling period in the
R E N G U
1 4 8 9 8 6 3 9 20 British naval hero (6)
A G A I N D R Y E R game of cricket (4)
2 3 5 4 8 9 7 1 6
S I C U E P I
21 Residential district,
S I N G E R A T I O 1 2 3 14 Integrate (5)
often run-down (6)
WORDWHEEL
I E D S
5 4 8 3 9 6 1 7 2
S K I M P C O R G I 16 Monarch (5)
T N A I R E T
1 3 4 2 7 5 8 9 22 Heat (6)
A S C O T E S S A Y
8 9 2 1 The nine-letter word was 17 Cattle farm (5)
N U H E I 3 1 7 9 8 4 9 7
T R E S I D E N T S 1 2 6 7 2 3 6 1
FRANCHISE 19 Recognise (4)
Punter
23
| Cheltenham Festival A to Z
There’s no
place like
Cheltenham
the massive representation from
day! his crown. You can rest assured that eldest grand-daughter might need
the Kaiser Chiefs to back a winner with her wedding victorchandler.com/cheltenham
victorchandler
r..com/cheltenham
hit “Ruby, Ruby, Ruby” will be bel- to England rugby captain Mike
C
olm Murphy trains 50 horses in ago and you are only one mistake from but definitely won’t take part unless the
Ballinadrummin, Killena, Gorey – an hitting the deck again. However, we’ve word ‘soft’ appears in the going descrip-
address more Harry Potter than Dick mirrored last year’s routine and its tion. One feels that the word ‘soft’ would
Francis, but apparently it’s in the gone well – if it ain’t broken it doesn’t never appear in any description of his
heart of County Wexford. We didn’t meet need fixing.” trainer.
face-to-face and only spoke on the phone – The eerily calm Murphy Murphy is set to stay in the
he was too busy finalising his Festival plans acknowledges that this will same B&B he stayed at last
and I couldn’t find platform nine and three almost certainly be Big year with his partner
quarters. Zeb’s last year at the Louise and doesn’t yet
The former amateur rider, who has a top level and the pair, know whether he’ll be
degree in accountancy, is no stranger to with two other stable- travelling home on
Cheltenham success, with three wins mates, will have Wednesday night.
already under his belt, and his Big Zeb is begun their journey “Cheltenham is the last
looking to defend his crown in across the Irish Sea place on earth I want to
Wednesday’s sportingbet.com Champion by the time you read be if things go pear-
Chase. this. “We’ll leave the shaped on Wednesday.
As the name may imply, Big Zeb is big. yard at about 6pm on I’ll be the first to leave
He is 16.3h (that’s 16 hands and 3 inches Sunday night, drive for the course if they do.”
measured from the highest point of the about an hour to the However, if any of his three
withers, where the neck meets the back). port, then make the cross- runners are successful, he
Named after his owner Patrick Redmond ing in around three-and-a-half won’t be in quite such a hurry. I
(nicknamed ‘Big Zeb’), he (the equine ver- hours. That means we should asked him if there was any particu-
sion) is apparently “very shy” and “doesn’t arrive just before 1am and reach lar bar, restaurant or club he’d be visiting
really enjoy the big occasion. He just gets Cheltenham by 5.30am.” I will never com- if they were to toast success. He told me
on with the job.” Well, he has got on with plain about my 90-minute drive to the it’d be easier to list those they won’t visit.
the job pretty well so far in a career that Cotswolds again. “We’ve had plenty of success, but
has seen him win 24 races and over Murphy and his team will spend every wouldn’t have had that success if we had-
£500,000 in prize money. minute of the pilgrimage with the horses, n’t been lucky enough to be sent good
“He’s in grand order,” Murphy assures that is except for the actual ferry crossing Grade One horses in the first place,” says
me. “Things have gone a lot smoother itself when nobody is allowed down below. an unbelievably grounded Murphy in
than last year when we had all kinds of Yet, that’s not a worry as the horses are “as answering how important Cheltenham is
problems after Sandown. I’m really calm as anything and have done it all to a man who has only been training for a
happy with him.” There is almost a tone of before”. It all means that the meticulous decade.
confidence in his voice, but he is certainly trainer can exercise his string when they Success on National Hunt racing’s
not complacent. “He is a year older, a reach Prestbury Park and they won’t miss biggest stage certainly fills the boxes,
year wiser and I’m not going to tempt fate out on their routine. which in turn pay the bills. It’s as simple
by saying that he is a better jumper,” he All three runners are scheduled to strut as that. Is it really life or death? Of course
continues. “He fell in this race two years their stuff on Wednesday and the stable’s not, it’s much more important than that!
Sport
25
GRAND SLAM IS STILL ALIVE
BUT JOHNSON FAR FROM HAPPY
ENGLAND EDGE PAST SCOTS BUT BOSS
NOTES ROOM FOR IMPROVEMENT: P26
FOOTBALL
BY FRANK DALLERES :I@:B<K J:FKK@J?:LGJ@OK?IFLE;
@::NFIC;:LG$>iflg89Xe^Xcfi\ Ç ;le[\\Lk[%%( ) Dfk_\in\cc%%%( )
WEST HAM manager Avram Grant 8ljkiXc`X*)+$-mB\epX)-+$-%8ljkiXc`X >ff[n`cc`\+' Jlkkfe(#.)
saw another promising cup cam- )gkj Y\XkB\epXYp-'ilej%>iflg8 ;Xcp.* 8kk1.#*,/
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paign reduced to shreds – and then
DZ:lccld('( m:XeX[X)-($0%E\n :CP;<J;8C<98EBGI<D@<IC><
borrowed from samurai culture to Q\XcXe[)gkj Y\Xk:XeX[XYp0.ilej% IXe^\ij%%%%%%%%( ) B`cdXiefZb%% ' (
explain his disappointment at deci- ;`fl]*/# ?Xd`cc-(g\e
sions he felt cost his side a trip to =FFK98CC :cXeZp/.f^ 8kk1+)#+(.
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Danny Higginbotham’s second-half DXe:`kp%%%%%%' ( I\X[`e^%%%%%%%%% ' '
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free-kick clinched victory in the FA Jkfb\%%%%%%%%%%% ( ) N\jk?Xd%%%% ( ( ?l[[\ij]`\c[%%%%%% ,' 9iX[]fi[%%%%%%%%%%%%%%% (-
Cup quarter-final after Hammers ?lk_() G`hl`fee\*' ?lccBI%%%%%%%%%%%%%%%+' :iljX[\ij%%%%%%%%%%%%%))
striker Frederic Piquionne had con- ?`^^`eYfk_Xd-* 8kk1)+#,,' N`^Xe%%%%%%%%%%%%%%%%%%(+ ?lcc%%%%%%%%%%%%%%%%%%%%%%%% ()
troversially cancelled out Robert EGFN<I:?8DG@FEJ?@G IL>9PLE@FE
Huth’s early header for Stoke. It :Xi[`]]%%%%%%%%%%%( ) 9Xiejc\p%%%%%%% ( )
might have been worse had Robert N_`kk`e^_Xd)( >iXp)0#/0 I9JJ@OE8K@FEJ
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Green not kept the visitors in the
game by saving Matthew Green tried in gave fouls, a penalty, everything for Huth was more accurate, meeting
Etherington’s penalty. vain to prevent them. It was a penalty for us at the a Rory Delap long throw in the 12th email sport@cityam.com
But Grant was angry at James Higginbotham’s end which he didn’t give. What hap- minute to open the scoring.
Tomkins being denied a late penalty free-kick creeping pened with Tomkins was more bushi- Piquionne levelled when he brought
and suggested referee Mike Jones had over the line do. Maybe he felt guilty. I think it was down Thomas Hitzelsperger’s long
been trying to compensate for miss- the effect of the first goal for us.” ball, seemingly with his arm, and
ing Piquionne’s handball in the Picture: Defeat spelled the end of West lobbed goalkeeper Thomas Sorensen.
build-up to his equaliser. GETTY Ham’s hopes of salvaging silverware Etherington earned the chance to
Referring, somewhat obscurely, to from an otherwise difficult season, restore the home side’s lead when he
the Japanese word bushido, denoting having also enjoyed a lengthy run in won a penalty, but was denied by a
the code of honour observed by the Carling Cup, only to lose out in smart save by Green. The goalkeeper
samurai warriors, Grant said: “I think the last four. They might have forced could not stop Higginbotham’s pow-
maybe this is the reason the referee a replay had Matthew Upson’s late erful low free-kick, however, which
started the second half very strange. header been a fraction lower and not snuck through the wall and crept
Until they scored [the second] goal he rebounded off the Stoke crossbar. over the line despite Green’s touch.
RBS 6 NATIONS
Touching distance
ROUND-UP
Parisse: Twickenham
loss fired Italy heroics
OVERJOYED Italy captain Sergio
Parisse has revealed the pain of a
crushing defeat to England was the
inspiration behind their landmark
RBS 6 Nations triumph over France on
Saturday. Grand Slam just one win away after England
Italy bravely fought back from 12
points behind to win 22-21 in Rome survive a scare to defeat tenacious Scotland
and achieve arguably their greatest
ever result in the competition. And
Parisse admitted the sheer desire they
displayed was forged in the thrashing RBS and territory England went in at
the break on level terms at 9-9 and
they received at Twickenham last 6 NATIONS only managed to cross the try line
month. once John Barclay had been harsh-
“Our home defeats against Ireland BY JAMES GOLDMAN ly sent to the sin-bin.
and Wales were disappointing,” said England failed to build on substi-
Parisse, who plays his club rugby in
Paris with Stade Francais.
ENGLAND 22 tute Tom Croft’s score and a tense
finale was set up by a superb piece
“But it was our heavy loss to of individualism from Scotland
England that gave us an extra motiva-
tion to show that we are a better team
SCOTLAND 16 wing Max Evans,
Wilkinson’s trusty boot secured
before
SPORT
FOOTBALL
KEY MOMENTS
▲
FOOTBALL Championship side Reading.
BY JAMES GOLDMAN But the Italian insists it will be
next season before big-spending City
MANCHESTER CITY manager can really regard themselves as
Roberto Mancini is relishing his United’s equals.
side’s FA Cup semi-final against “It is a great semi-final,” he said.
Manchester United, but insists his “We are very close with all the top
RBS 6 NATIONS
TEAM PLD W D L F A PTS
England 4 4 0 0 124 57 8
Wales 4 3 0 1 86 61 6
France 4 2 0 2 89 82 4
Ireland 4 2 0 2 69 73 4
Italy 4 1 0 3 62 117 2
Scotland 4 0 0 4 61 101 0