Issue 1,376 Friday 6 May 2011

BUSINESS WITH PERSONALITY FREE

www.cityam.com

COMMODITIES WHAT TO WATCH

SPECIAL
HIT BY CRASH WEAR
COMMODITIES
ON
YOUR WRIST
▲

BY STEVE DINNEEN

COMMODITY prices suffered a dramatic

slump yesterday as oil fell below the psy- LME tin down THIS SPRING
chologically important $100 a barrel mark
in the US last night. 9.8% P19-29
▼
The accelerating crash brought into
sharp focus a commodity sell-off that has
now spanned four days and has seen silver
lose almost a quarter of its value. Investors
scrabbled for other safe-haven assets dur-
ing the biggest exodus from the sector for
two years, amid speculation the commodi-
ties boom has come to an abrupt end. Palladium down
10.4%
US crude plummeted 8.64 per cent to
$99.80 a barrel, the biggest one-day fall in
oil prices since the height of the financial

▼
crisis. Brent crude lost 9.78 per cent, hit-
ting $109.02 last night, after climbing to
$126 last week.
The slump followed a report showing
productivity growth in the US slowed in
the first-quarter, while jobless claims
jumped to an eight-month high. Traders
are also worried about excessive monetary Gold down US crude
down
tightening in China, the world’s top con-
sumer of raw materials. 4.5% 9.5%
▼
US households have been squeezed by
petrol prices approaching $4 a gallon, lead-
Brent crude
▼
ing to higher than expected oil inventories
of 3.4m barrels as people shied away from Silver down down
long car trips over the Easter break.
In a roll-call of despair for commodity 23.3% 9.1%
▼
holders, silver fell 10 per cent to $35.34, tin *all percentage

dropped more than seven per cent, nickel
by over six per cent and copper by a shade
above three per cent. Even safe-haven gold
fell two per cent yesterday.
Soft commodities fared little better, with
coffee declining 3.3 per cent, sugar down
2.5 per cent and cotton falling by 4.6 per
cent. Gas also fell, losing 5.7 per cent.
US Treasury bills were among the big
winners, with yields falling 3.16 per cent.
The Dow and the S&P 500 both fell more
than one per cent as energy shares
slumped with the oil price. The euro was
down two per cent against the greenback
The sell-off came a day after commodi-
ties giant Glencore priced its £36bn flota-
tion at the bottom of its range. Analysts say
the float could serve as a marker for the
high point of the commodity boom.
▼
price changes
since 29 April 2011
Last month long-term bull Goldman
Sachs advised clients to close their long
positions on a basket of commodities
including copper, platinum, soy beans and
crude oil.
ALLISTER HEATH: P2; UK SERVICES: P3;
GLENCORE: P7; OTHER ECONOMICS: P13

LLOYDS BOSS SNUBS RIVALS

BANKING Lloyds also shocked the market by estimat- to participate in the case.
▲

BY JULIET SAMUEL
LLOYDS’ new head Antonio Horta-Osório
blindsided other bank chiefs yesterday by tak-
ing a unilateral decision not to participate in
an industry appeal against a high court rul-
ing that could cost the banks billions.
A board member at a rival bank said that
the Lloyds boss had angered his counterparts
by going it alone and showing that he was
“not in the club” on the issue. Banks have to
decide by next Tuesday whether to collective-
ly appeal a ruling that they must pay compen-
sation retrospectively to customers who were
mis-sold payment protection insurance (PPI).
ing its costs from the case at £3.2bn, far above
expectations and out of kilter with the FSA’s
estimate last year that the PPI issue would
cost the industry as a whole £4.5bn.
Other banks had so far refused to guess at
their costs, although Lloyds is understood to
have cleared its figure with the FSA before
publication. RBS, which reports interim
results this morning, was said to feel
ambushed by the Lloyds move: it is likely to
face pressure to match its rival’s disclosure.
Horta-Osório’s move marks the second
time he has unilaterally pulled out of the
industry-wide PPI case: last October, when he
still led Santander UK, the bank decided not
It is understood that he sees the latest deci-
sion as a matter of picking battles: Lloyds is
fighting fiercely to avoid forced branch sales
beyond the 600 it must sell already after the
Vickers Commission said it would push for
more. Rather than fight on two issues, Horta-
Osório has decided to focus on the branches.
Lloyds’ high estimate of its costs sent its
stock plummeting, with eight per cent wiped
off its shares by the end of the day. Overall,
the UK’s four biggest banks lost £1.2bn from
their market cap yesterday. FULL STORY: P5
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28/02/11 - 03/04/11 is 105,180

FTSE 100 ▼ 5,919.98 -64.09 DOW ▼ 12,584.17 -139.41 NASDAQ ▼ 2,814.72 -13.51 £/$ ▼1.64 -0.01 £/¤ 1.13 +0.02 ¤/$ 1.45 -0.03
 2 News
Commodities crash was predictable
EDITOR’S LETTER
ALLISTER HEATH
SO Goldman Sachs was right after all.
The bank everybody loves to hate
called the top of the commodities mar-
ket three weeks ago; yesterday, its pre-
diction came true, with the declines in
key commodities seen in recent days
suddenly turning into an almighty
crash. The price of oil plunged especial-
ly dramatically, with Brent crude los-
ing $12 yesterday, or 10 per cent, to
trade at around $109 a barrel.
The most shocking slump has been
suffered by silver: just a few days ago, it
was trading at around $50; it is now
back down to $35, having suffered its
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Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
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Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
JAGUAR TO INVEST £5BN
Jaguar Land Rover is investing £5bn
over the next five years to catch up on
quality with BMW, Mercedes-Benz
and Audi – the three German compa-
nies that dominate the luxury end of
the automotive business globally. The
money will be spent mainly on prod-
uct development and new equipment
at JLR’s three UK plants with some of
it likely to cover new investments at a
planned factory in China.
CARREFOUR CHIEF STRUGGLES
When Lars Olofsson, Carrefour chief
executive, unveiled plans to overhaul
the group’s financial structure in
early March, he spoke of “providing
Carrefour with more momentum”
and creating value for shareholders.
In the nine weeks since the
announcement it has fallen 13 per
cent amid increasingly public
investor dissent.
steepest crash since the 1980s. Since 29
April, silver has crashed 23.3 per cent,
LME tin is down 9.8 per cent, palladi-
um has lost 10.4 per cent, gold 4.5 per
cent and brent crude 9.1 per cent. In
the US last night, the price of a barrel
of oil was back below $100. It’s dramat-
ic and highly significant stuff.
It is excellent news for consumers
and companies that use raw materials;
relentless and increasingly unbearable
pressures on costs and prices will now
be reduced, at least if commodities
remain weaker. But few economists
are celebrating. The main driver of the
correction was weaker economic data.
Markets were especially rattled by
weekly US jobless claims that jumped
to an eight-month high and the news
that the country’s productivity growth
slowed in the first-quarter. Other bad
figures included all three main UK
activity surveys: the purchasing man-
agers indices for manufacturing, con-
struction and services all showed
weaker (but still positive) growth in
April. Another reason for the sharp fall
Hammond
slams strikes
TRANSPORT
▲
BY STEVE DINNEEN
TRANSPORT secretary Philip
Hammond has branded the latest
round of Tube strikes “highly irrespon-
sible” and said the union’s behaviour
will lead to tougher industrial laws.
The RMT union, headed up by Bob
Crow, has announced six strike days.
They will down tools for between nine
and 24 hours between 16 and 20 May
and again from 13 to 17 June.
Hammond told parliament: “No
one in this government is spoiling for
a fight with the unions but the unions
appear to be spoiling for a fight with
London.
“I say to the RMT and other unions
that this kind of irresponsible strike
action, where an alternative, proper
remedy is available, is only strengthen-
ing the hand of those including the
CARLYLE FACES CHINA QUESTIONS
Carlyle, the US private equity group,
is facing questions over its invest-
ments in two Chinese companies
that have been accused of fraud and
suspended from trading on stock
exchanges in Hong Kong and New
York. The scrutiny comes at an
unwelcome time for Carlyle, as the
manager of some $106bn in funds
seeks to burnish its reputation
ahead of a planned initial public
offering.
INTEL WANTS MOBILE GRIP
The revolution in chip design
announced by Intel this week is
being seen as an attempt to see off a
threat from Arm Holdings, the UK
chip designer, which challenges its
dominance in microprocessors. The
world’s biggest chipmaker by sales
on Wednesday unveiled a break-
through 3D structure for its next-
generation processors that the US
company estimated could give it a
three-year lead over competitors.
is mounting fears that China’s mone-
tary tightening will hit demand from
the world’s top buyer of commodities;
a growing number of other countries
are starting to hike interest rates
(though the Bank of England once
again declined to do so yesterday); and
many investors are beginning to
realise that many commodity prices
are completely out of line with reality.
Jeffrey Currie, Goldman’s influen-
tial 45-year-old head of commodity
research, announced that he would be
closing his erstwhile ultra-profitable
long commodities trade made up of a
basket of crude oil, copper, cotton, soy-
bean and platinum. He also quit his
long copper and platinum positions,
arguing that the risk was now too
high. His move was revealed on 12
April; many shrugged it off as non-
sense. Barely two weeks later, these
pundits have egg on their face.
Presumably we will now hear all sorts
of demented conspiracy theories about
how Goldman controls the world – but
the simple truth is that Currie called
mayor who are calling for tougher
industrial relations laws.”
Boris Johnson has slammed the
action, calling on the government to
bring in tough laws to stamp out fur-
ther strikes.
He said: “There is a great deal of
sense in reform of the union law and
the government needs to get a move
on.. London Underground is one of
the indispensable networks for one of
the greatest cities in the world. I don’t
think it should be held to ransom by a
small minority of union hotheads.”
CITY VIEWS: PAGE 13
Transport secretary
Philip Hammond says
Bob Crow’s strikes will
eventually lead to
tougher union laws
PROSECUTOR RAILS AT DISASTROUS
PLANS TO DISMANTLE THE SFO
Ministers’ plans to break up the
Serious Fraud Office have been
attacked by a top prosecutor as a
“dangerous” move that will under-
mine Britain’s ability to fight fraud.
Vivian Robinson, QC, the SFO’s gener-
al counsel who resigned last week,
warns today that the “disastrous”
plans would disrupt more than 100
fraud cases currently on the books.
NUCLEAR WORKERS VENTURE INTO
REACTOR NO 1 AT FUKUSHIMA
Two nuclear workers, cocooned in
protective suits and breathing from
air packs, have become the first
humans to venture into the still dan-
gerously radioactive No 1 reactor at
Fukushima Dai-ichi since the March
11 earthquake and tsunami in Japan.
The team was restricted to just 40
minutes exposure time.
the market right.
The primary drivers of commodity
price bubbles are excessive liquidity:
too much money chasing too few raw
materials. Central banks are always
the main creators of liquidity: either
via excessively low interest rates or
quantitative easing – or through the
manipulation of exchange rates and
the accumulation of cash piles that
put downwards pressure on yields.
There is still plenty of liquidity in the
global economy – but prices of key
commodities such as oil had become
so elevated that they had started to
choke off demand. With global growth
starting to slow after its astonishing
post-recession rebound, investors have
at last realised that they allowed them-
selves to get carried away. It is ironic, of
course, that speculators are always
blamed when commodity prices soar,
even when other, larger forces are real-
ly responsible – yet they are never
thanked when prices collapse.
allister.heath@cityam.com
Follow me on twitter: @allisterheath
Nick Clegg faces almost certain referendum defeat once votes are counted tonight
Clegg’s AV hopes vanish
POLITICS
▲
BY HARRY BANKS
THE future of the coalition govern-
ment is hanging in the balance as
Nick Clegg prepares himself for a cer-
tain defeat in the referendum on the
alternative vote due to be announced
tonight.
Voters are expected to reject
change in favour of the traditional
first-past-the-post system, a crushing
disappointment for Clegg who had
pledged electoral reform as a key
VIRGIN TEAMS UP WITH SPOTIFY
Virgin Media has teamed up with
Spotify and will finally launch its
much-delayed digital subscription-
based music service “imminently”.
According to a senior music industry
executive, Spotify and Virgin Media
have finalised a deal to launch a sub-
scription music service and it will go
live soon.
HAGUE EXPELS LIBYAN DIPLOMATS
William Hague, the Foreign Secretary,
ordered the explusion of two Libyan
diplomats from its London embassy as
he travelled to Rome to demand heav-
ier military bombardment of Col
Muammar Gaddafi’s regime. Hague
called for the beginning of a final
push to topple the beleagured regime
in Tripoli, more than seven weeks
after a UN Security Council resolution
authorised military action to protect
civilians.
CITYA.M. 6 MAY 2011
NEWS | IN BRIEF
AIG loses $1bn in first quarter
Bailed-out insurer American
International Group (AIG) lost more than
$1bn (£609m) from its ongoing opera-
tions in the first-quarter, as the company
took a huge charge for the termination
of its credit facility with the Federal
Reserve. AIG reported a loss from con-
tinuing operations of $1.18bn compared
with a profit on the same basis a year
earlier of $2.09bn. Its Chartis unit also
racked up $864m in catastrophe losses
related to the 11 March earthquake in
Japan. The company, one of the top for-
eign insurers in Japan, had previously
warned of substantial quake charges.
Sir David Michels to quit M&S
Marks & Spencer is undergoing a board-
room reshuffle, with deputy chairman
Sir David Michels and non-executive
director Lady Patten both stepping
down. Michels, who has served five
years on the board, will leave after his
term ends in February while Patten, who
has been with M&S since 2006, will go
after the firm’s annual meeting in the
summer. M&S said it has appointed a
senior executive from Mars and a direc-
tor from John Lewis.
plank of the coalition accord.
Former Liberal Democrat leader
Lord Ashdown warned that Prime
Minister David Cameron’s refusal to
disassociate himself from a “regi-
ment of lies” poured out by the no-to-
AV campaign would have long-term
consequences for the coalition,
including the terms on which it even-
tually ends.
“So far the coalition has been lubri-
cated by a large element of goodwill
and trust. It is not any longer,” he told
the Guardian.
ADIDAS BOOSTS SALES OUTLOOK FOR
THE FULL YEAR
German sportswear and equipment
maker Adidas said it will continue to
raise prices to offset higher raw mate-
rial costs and sees a potentially signif-
icant knock to its profit from the
catastrophe in Japan, as it reported a
25 per cent jump in first quarter net
profit and raised its sales guidance.
“Japan is eating into our profit,” chief
executive Herbert Hainer said.
YEN SURGE RAISES INTERVENTION
SPECULATION
The Japanese yen surged yesterday to
its strongest level against the dollar
since the world’s biggest economies
intervened to stop its rise two months
ago.The move in early trading in
Europe and the US, which sent the
dollar below ¥80, stoked speculation
that Japan could act again to tame its
currency.
CITYA.M. 6 MAY 2011 News 3

Dixons leads list of

TOP TEN FTSE STOCKS ON LOAN
Company % of shares out on loan
Dixons Retail 18.69%

top shorted stocks

Yell Group 18.65
HMV 18.42%
Mothercare 12.33%
Thomas Cook 10.41%
Dixons has issued two profit warn-

▲
RETAIL
BY RICHARD PARTINGTON ings so far this year, leading sellers to Homeserve 9.40%
cover their positions.
EMBATTLED electronics retailer The chain led the list of FTSE 100 Kesa Electricals 8.96%
Dixons has the most shorted stock firms with shares out on loan as of 2
amongst its blue chip counterparts, May. Debenhams 8.59%
according to research by Will Duff Gordon, research direc-
DataExplorers. tor at DataExplorers said: “Investors Carpetright 8.45%
The firm has 18.69 per cent of its continue to express negative senti-
shares out on loan, which represents ment towards retailers, which now
almost 70 per cent of the supply of account for six of the top ten most
Mitie Group 8.0%
Slowing growth in UK services will concern George Osborne Picture: Micha Theiner / City A.M. shares available to be borrowed. shorted FTSE All Share stocks.” Source: DataExplorers

Pound slumps
as UK service ONLY ONE WATCH MANUFACTURE CAN SHOW YOU THIS.

sector slows
“Despite the slowdown, growth of
▲

UK ECONOMY
BY JULIAN HARRIS
GROWTH in the UK’s service sector
eased last month, after printing a tear-
away rate in March.
Services expanded at an index score
of 54.3, according to the latest purchas-
ing managers’ index (PMI), down from
March’s 13-month high of 57.1.
The slowdown in the economy’s
largest sector will concern chancellor
George Osborne, with this week’s PMI
surveys pointing to quarterly growth
of just 0.4 per cent for the quarter.
The news saw sterling drop to a 13-
month low against the euro, as
investors judged that weaker econom-
ic performance would rule out increas-
es in the UK’s Bank rate.
The pound touched a six-month low
versus a currency basket, but clawed
back some losses in afternoon trading
after the European Central Bank
appeared to rule out an interest rate
hike next month.
Even though growth slowed in the
British service industry, its progress
remains above the six-month average
(53.5). All PMI scores above the no-
change rate of 50 indicate economic
expansion.
the service sector nonetheless
remained solid, supported by another
month of marked new business wins,”
the report said.
New business grew at its fastest rate
for a year, “amid reports of greater
client activity both at home and
abroad”.
The spike in March’s PMI was partly
attributed to government depart-
ments rushing to spend their budgets
before the end of the tax year more so
than usual – “perhaps due to the
impending closures of government
departments and projects.”
Nonetheless, this week’s surveys are
“clearly a disappointment for both the
Bank of England and the govern-
ment,” said Chris Williamson of
Markit, which compiles the data.
April’s surveys indicated “the largest
loss of growth momentum seen since
just after the collapse of Lehmans in
late-2008,” Williamson said.
Sluggish growth in the UK will
cause the chancellor to miss his target
of eliminating the annual deficit by
the end of the parliamentary term,
the National Institute of Economic
and Social Research said yesterday.
ECONOMICS: P13

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doubts remain about the payment SHORTLISTED EDITOR
network’s ability to grow under loom- ALLISTER HEATH FOR ITS
ing regulation. BUSINESS JOURNALIST OF THE
Revenues rose 15 per cent to $2.25bn YEAR AWARD In partnership with
(£1.37bn), slightly above expectations. RI
MO
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a $1bn share buyback programme.
 CITYA.M. 6 MAY 2011 Focus on Lloyds 5

Horta-Osório does a spot of kitchen sinking

WAS Antonio Horta-Osório being
entirely honest yesterday when he
denied kitchen sinking at his first set
of results? Not quite: what he did was
gut the Lloyds kitchen entirely,
clogged dishwasher and all. Then,
not content with clearing out his
own house, he broke into the homes
of RBS, HSBC and Barclays, and stole
their kitchen sinks too – while they
were sleeping.
By admitting responsibility in the
Payment Protection Insurance (PPI)
mis-selling scandal, Horta-Osório has
effectively dashed his rivals’ chances
of escaping unscathed. Yesterday, the
other PPI banks were publicly insist-
ing they haven’t yet given up hope of
overturning the High Court’s deci-
sion at the Court of Appeal or
Supreme Court, as they did with the
bank charges case. Privately, they
know the game is up.
If one assumes that Lloyds – which
has around a third of the market –
isn’t overestimating the £3.2bn cost
of recompensing affected customers,
it is easy to guess what other banks
might have to put aside. RBS, which
has an 18 per cent share, is on the
hook for around £580m while HSBC
and Barclays, who have 14 per cent
each, could have to set aside about
£450m.
The nasties didn’t stop with PPI
provision. Impairments were £500m
higher than expected, due to impair-
ments in Ireland, while the bank was
even lighter on detail than usual
when it came to outlook. Net interest
margin fell from 2.12 per cent in the
final quarter of last year to 2.07 per
cent. The bank blamed higher whole-
sale funding, even though one would
expect wholesale funding costs to be
declining. Perhaps most galling of all,
Daniels received a £1.45m bonus for
his stewardship of the bank. Funnily
enough, Horta-Osório was tight
lipped on whether he deserved it.
BOTTOMLINE
Analysis by David Crow

Horta-Osório denied that he was dampening expectations Picture: GETTY

Impairments
send Lloyds
into the red “The new CEO is unlikely to have
▲

BANKING taken any risks,” he said. Many dis-

BY JULIET SAMUEL agreed, however, with the stock clos-
ing down eight per cent at 53.38p.
NEW Lloyds chief executive Antonio Horta-Osório’s first-quarter leading
Horta-Osório was yesterday accused of the part-nationalised lender has seen a
“kitchen-sinking” his first results at dramatic acceleration in the restruc-
the helm of the bank, bringing for- turing of its funding. The bank
ward some charges and potentially unloaded £21bn worth of non-core
overestimating others to give himself a assets, repaid £26bn of government
low base from which to improve. cash and issued £13.5bn of debt. That
The bank plunged back into the red, is twice the rate at which it pursued
reporting pre-tax losses of £3.47bn for the same actions last year.
the first-quarter of 2011 on the back of
a £1.14bn one-off impairment charge ANALYSIS l Lloyds
from its Irish loan book and a £426m 70
p
loss on sales of non-core assets.
66
But asked if he had employed the 53.38
common “kitchen-sinking” trick, 5 May
62
Horta-Osório retorted: “I really do not
see any kitchen-sinking in these 58
results.”
Analysts were dubious. “It’s got 54
kitchen sink written all over it,” said
one. Evolution Securities’ Arturo de 50
A Frias said it was “expected”. ANALYSIS l Lloyds
70

66

62

58

54

50
p

7 Feb 25 Feb 17 Mar

53.38

6 Apr
5 May

28 Apr
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr

ANALYSIS l Share of PPI Market

21% 33%
Lloyds

%
RBS
HSBC
14% Barclays
Other

14% 18%
A

Source: Citi
Source: Citi

21%

14%

14%
%
33%

18%
Lloyds
RBS
HSBC
Barclays
Other

S
S

ANALYSI lShareofP IMarket

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CITYA.M. 6 MAY 2011 News 7

NEWLY-FLOATED GROUPS HIT TURBULENCE

Company Float Price Float

Date
Yesterday's
Price
FlyBe becomes latest victim
Promethean 200p March 2011 69.25p of curse of the London floats
FFlyBe FlyBe 295p Dec 2010 170.5p nomic backdrop” in its core UK mar- Skrill and Edwards, have had to be

▲
CAPITAL MARKETS
BY DAVID HELLIER ket. cancelled, with investors complain-
House broker Investec reduced its ing about a lack of faith in new
REGIONAL airline group FlyBe yester- estimate for profits in 2012 from issues.
day saw its shares fall more than 20 £37m to £22m, the same as this year, Market participants partly blame
CPP 235p March 2010 130.8p per cent after scaling back guidance and shares in the company fell to the poor share price performances of
for its 2012 profits. 170p, 125p lower than the float price. a group of recently floated compa-
The airline, which raised £60m at The turbulence in the FlyBe share nies, although FlyBe says it has been
the end of last year for European price will come as a blow to those try- rocked by economic headwinds.
expansion as part of its London flota- ing to bring UK companies to market FlyBe’s advisers said yesterday they
Perform 260p April 2011 228p tion, said it had been hit by “an in the City. remained “chipper” about the
extremely challenging macro-eco- Recently a couple of UK floats, group’s prospects.

Lion Capital
buys retailer
All Saints
hour, after
▲

RETAIL
BY RICHARD PARTINGTON G o o d e
Pa r t n e r s
HIGH street fashion retailer All Saints h a d
has been rescued by a private equity looked the
led consortium, following months of more likely to lead a
talks to secure a new backer. buyout (as revealed in City A.M.
British investment firm Lion on 27 April, above).
Capital, which also owns the La Senza The US firm is said to have lacked
lingerie brand, has teamed up with the financial firepower to secure
US private equity house Goode majority ownership of the firm,
Partners to buy the retailer. according to sources close to the deal.
The deal, which values All Saints at The British outfit will own 65 per
£105m, comes after sever- cent of the firm, while
al other bidders failed to New All Saints ownership Goode will hold 11 per
pen an agreement. cent (see chart, left).
“It’s been a long All Saints founder
process but we finally Kevin Stanford will
9%
M

got there in the end,” own 15 per cent,

gmt

chief executive 11% with the firm’s

Stephen Craig said. Goo management
de
“We’ve been very (mgmt), including
impressed with the
[Lion Capital] guys
we’ve met and
%
15tanford
% 65%
its two key fashion
designers, owning
the remaining
engaged with in a S Lion Capital nine per cent.
short space of time. All Saints was put
That speaks volumes on the block after
for how they see us as a majority shareholders
brand and where we’re Kaupthing and Glitnir,
going,” he added the Icelandic banks that col-
Lion Capital emerged as the front- lapsed during the financial crisis,
runner in the deal at the eleventh looked to sell their holding.

Investors scrambling to
snap up Glencore shares
▲

COMMODITIES That would make Glencore one of

INVESTORS have snapped up the
chance to buy a piece of Glencore,
with the commodities giant report-
edly seeing the book for its $60bn
(£36.6bn) float fully covered on the
first day yesterday.
All $11bn worth of the trader’s
shares on sale are said to be account-
ed for already, just a day after its
1,600-page prospectus was made
public.
a few initial public offerings (IPO) in
London to get off smoothly this year,
with the market having been unusu-
ally difficult so far (see top left).
Bankers announced a wide 480p
to 580p price range, considerably
below previous estimates that val-
ued the company at up to $78bn.
Investors are said to have reacted
well to the cautious valuation.
Trading is due to start 19 May.
 8 News
Shares in GM, led by chief Dan Akerson (above), fell three per cent Picture: REUTERS
GM triples its profits
AUTOMOTIVE
▲
BY STEVE DINNEEN
GENERAL Motors (GM) added fur-
ther weight to the automotive
industry bounce-back after more
than tripling its quarterly profits.
However, the stronger-than-
expected results, driven by a recov-
ery in the US market and strong
sales in Asia, were not enough to
please bearish investors, who picked
up on its vehicle prices being weak-
er than rival Ford, with GM stock
SocGen disappoints
as misses forecasts
BANKING
▲
BY ELIZABETH FOURNIER
FRENCH bank Société Générale has
reported its best quarter in two
years, with profits up 9.2 per cent
in its investment banking arm.
But shares in the group fell as
the numbers missed analyst fore-
casts, with its retail arm’s expo-
sure to North African countries
and banking taxes in the UK and
France weighing heavily on an oth-
erwise strong performance.
Net profits at Société Générale’s
investment bank rose 9.2 per cent
year-on-year to €591m (£524m),
accounting for nearly two thirds of
group earnings in the quarter, but
Mexico props Yorkshire eyes HSBC plans to
up slump at role in return of reveal earnings
Spain’s BBVA Northern Rock every quarter
▲
BANKING
BBVA, Spain’s second-biggest
bank, posted a 7.3 per cent drop in
first-quarter net profit, with mar-
gins squeezed by high funding
costs and a price war for deposits
in its sluggish home market.
BBVA’s Latin American units,
especially Mexico, helped mitigate
the slump in Spain.
Net profit came in at €1.15bn
(£1.02bn), marginally above fore-
casts.
Net interest income in Spain
dropped 11.3 per cent, with profits
sinking by a third.
falling three per cent.
The firm’s total sales rose 15 per
cent to $36.2bn (£22bn) against ana-
lyst expectations of $35.6bn.
GM’s results follow those of rival
Ford, which last week posted its best
first-quarter profit in 13 years as
higher prices for redesigned vehi-
cles offset pressure from spiking
commodity and oil prices.
It was the first full quarter since
GM’s Initial Public Offering (IPO)
last November. The company filed
for bankruptcy in 2009.
overall profits dropped 13.8 per
cent to €916m. The average esti-
mate in an analyst poll was
€1.06bn.
Chief executive Frederic Oudea
said that the bank expected to
improve profits in coming quar-
ters, highlighting growth in the
investment banking arm and the
reduction of its loan-loss provi-
sions as contributing to future
increases.
He also said that the bank was
on track to meet its full-year target
of €6n in net profits. Revenues rose
slightly to €6.62bn but were also
below expectations of €6.73bn.
The bank’s international retail
arm has branches in much of the
▲
BANKING
YORKSHIRE Building Society, one of
Britain’s biggest mutually owned
financial companies, supports put-
ting Northern Rock back into the
hands of its customers and wants to
work with government on the issue.
“Re-mutualisation of Northern
Rock provides a real opportunity to
create a more vibrant and sustain-
able financial sector,” chief execu-
tive Iain Cornish said.
Northern Rock was nationalised
three years ago after becoming the
first major British bank in more
than 150 years to suffer a bank run.
CITYA.M. 6 MAY 2011
ING triumphs
as races past
predictions
▲
BANKING
DUTCH bancassurer ING yesterday
beat first-quarter profit forecasts,
improving the prospects for listing
its US and European-Asian insur-
ance units and for other asset sales
to repay state aid.
ING, which received €10bn
(£8.9bn) state aid at the height of
the 2008 credit crisis, is selling
assets so it can repay the Dutch
government and splitting its bank
and insurance operations as part of
European Commission-imposed
conditions attached to its bailout.
The financial services group said
profit was boosted by higher inter-
est rates and investment margins.
ING reiterated it was preparing
to list the two insurance business-
es, most likely next year.
“I think markets have improved
in the US. Whether they are at this
moment ready for an initial public
offering I cannot say yet. We are
not ready yet,” ING chief executive
Jan Hommen said.
French-speaking Arab world
including Egypt and Tunisia, and
was also hit by unrest on the Ivory
Coast.
Société Générale’s shares fell
4.98 per cent yesterday to €43.26.
ANALYSIS l Societe Generale
54
€
50
43.26
5 May
46
42
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr
▲
BANKING
HSBC is planning to start report-
ing its earnings quarterly, and has
released its first-quarter earnings
for 2010 to aid comparison ahead
of next Monday’s financials.
Net profit at the bank for the
three months to 31 December was
$3.24bn (£1.97bn), rising 2.8 per
cent from the third-quarter.
Loan impairment charges were
up 7.1 per cent from the third
quarter, to $3.37bn from $3.15bn.
Previously the group only
announced half-year and full-year
earnings.
CITYA.M. 06 MAY 2011
Lisbon to get more
lenient bailout rate
EUROZONE CRISIS
▲
BY JULIET SAMUEL
PORTUGAL looked likely to get
more generous terms on its €78bn
(£69.2bn) bailout than either
Ireland or Greece yesterday, as the
IMF and EU unveiled a package that
they warned would “involve sacri-
fice from the Portuguese people”.
However, the accompanying fis-
cal squeeze, which aims to reduce
Lisbon’s deficit from 9.1 per cent of
GDP last year to three per cent by
2013, will throw Portugal into a two-
year recession, the government
admitted.
The EU and IMF said in a joint
UK now paying less than
Germany for borrowing
ECONOMICS
▲
BY JULIET SAMUEL
THE cost of Britain’s borrowing has
sunk below that of Europe’s “safe
haven”, Germany.
Britain is now paying 68 basis
points less for its two-year debt, 50
basis points less for five-year debt
and 28 basis points less for ten-year
notes.
Most economists attribute the
crossover to the hawkish stance of
the European Central Bank versus
Bank of England governor Mervyn
King’s clear commitment to loose
KENNY ANGLES FOR BETTER TERMS
IRISH Prime Minister Enda Kenny (pictured) yesterday said that he would press
for lower interest rates for Dublin’s EU/IMF bailout but insisted that higher cor-
porate taxes would not be part of any such deal. Kenny said an accord had
already been reached in principle to lower the 5.8 per cent interest rate on the
€85bn (£75.4bn) bailout, but details have yet to be hammered out. Pic: REUTERS
News 9
statement that the plan was a country’s banks.
“trade-off” between targeting Jurgen Kruger, who negotiated
growth measures to revive the rescue for the EU, said: “I will be
Portugal’s uncompetitive economy, honest, this is not an easy program,
and the budget cuts necessary to it is a tough programme, necessary,
enable Lisbon to restore market con- but we consider it fair.”
fidence. IMF chief Dominique Strauss-
The IMF said that the interest rate Kahn said: “The first priority is to
on Lisbon’s loan will be between tackle the longstanding and deep-
3.25 and 4.25 per cent. This com- rooted structural problems that
pares to an interest rate of 5.8 per have caused Portugal to have the
cent for Ireland and an original rate lowest rate of growth in the euro
of 5.2 per cent for Greece, although area over the last decade.”
Athens’ was lowered to 4.2 per cent That would mean scaling down
recently. the size of the public sector as a pro-
The IMF will supply a third of the portion of the economy, he said,
cash, while the EU will supply the amounting to a “fiscal devaluation”
rest, with €12bn earmarked for the that would slash benefits costs.
monetary policy. gerous assumption, underlined in
“People are getting nervous not the case of Germany by the guaran-
because of any deep-seated concerns tees it is providing to bail out weak-
about Germany, but because as er Eurozone member states.”
interest rates rise, yields will fall,”
said Newedge’s Bill Blain. ANALYSIS l UK's debt is now cheaper than Germany's
3
However, Capital Economics’ %
John Higgins warned against mak-
ing assumptions: “The idea that – 2.5 UK 5-year yields
term premiums aside – the yield on
a long-term government bond is
simply a function of the expected 2
path of short-term interest rates
does assume, however, that such German 5-year yields
securities are ‘risk-free’,” he said yes-
terday. “Increasingly, this is a dan- Dec
ANALYSIS l UK's debt is now cheaper than Germany's
3
2.5
2
%
UK 5-year yields
Dec 2011 Feb
German 5-year yields
Mar Apr May
2011 Feb Mar Apr May
NEWS | IN BRIEF
Vale posts a record $6bn profit
Vale, the world’s biggest producer of
iron ore, yesterday posted a record
$6.83bn (£4.2bn) profit in the first-
quarter, according to a regulatory filing.
The company was expected to earn
$5.75bn in the quarter, according to the
average estimate of nine analysts.
Revenue more than doubled and the
company booked a one-off gain after the
sale of some aluminium assets.
Kraft beats results forecasts
Kraft Foods reported a better-than-
expected first-quarter profit yesterday,
helped by price increases and cost cuts,
but it tempered its full-year outlook
after losing the contract to sell
Starbucks coffee in US grocery stores.
The maker of Cadbury chocolate, Oreo
cookies and Philadelphia cream cheese
said net revenue rose 11 per cent to
$12.6bn (£7.7bn), though net profit fell
by more than half to $802m due to an
asset sale boosting last year’s figures.
Domino’s US restaurants prosper
The US business of Domino's Pizza post-
ed a big quarterly profit yesterday, beat-
ing forecasts, as sales at restaurants
open at least a year were stronger than
expected and costs for commodities like
cheese and meats rose less than feared.
Net income for the three months to the
end of March rose 10.6 per cent to
$27.1m (£16.5m).
 The Capitalist
10 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
Great Scot Award
winner Sir Tom
Hunter and
Boisdale owner
Ranald Macdonald
Above: Songwriter
Bill Martin and
singer Annie
Lennox
Right: Racing
driver Jackie
Stewart and golfer
Sam Torrance
SIR TOM HUNTER TAKES
TOP SCOTTISH HONOUR
A VERY unusual thing happened ear-
lier this week, according to motor rac-
ing legend Jackie Stewart: “A
Scotsman did quite well.”
Stewart was referring to the emo-
tional moment when the Wizard of
Wishaw John Higgins lifted the
Snooker World Championship tro-
phy for the fourth time on Monday
night after narrowly beating new-
comer Judd Trump.
But he could just have well as been
talking about the winners of the
Great Scot Awards, held at Boisdale
restaurant in Canary Wharf in asso-
ciation with Boisdale Restaurants,
the Spectator and City A.M.
This year’s overall winner of the
Great Scot Award, following in the
footsteps of painter Jack Vettriano,
was Scotland’s first home-grown bil-
lionaire, the businessman, entre-
preneur and philanthropist Sir Tom
Hunter, who received the Johnnie
Walker Blue Label Great Scot Award
for pledging to give £1bn to good
causes over his lifetime through
The Hunter Foundation.
CITYA.M. 6 MAY 2011
Above left: Chief secretary to the
Treasury Danny Alexander with a piper
Above: Entrepreneur Angus MacDonald
and Ben Walker of Walker Selection
Pictures: Micha Theiner
Andy Gray, the disgraced
Glaswegian Sky Sports presenter,
was a no-show at the awards dinner,
but fellow Scots Danny Alexander,
chief secretary to the Treasury, and
Miss Scotland 2009 Katharine
Brown applauded as singer Annie
Lennox OBE accepted the Great Scot
Award for Charity and GMTV pre-
senter Lorraine Kelly won the Great
Scot Award for Entertainment.
The Lifetime Achievement Award
went to songwriter Bill Martin, who
wrote hit tunes including
Congratulations for Cliff Richard
and My Boy for Elvis Presley – the
last song Elvis performed live –
while Stewart, the first-ever winner
of the Great Scot Award, presented
golfer Sam Torrance OBE with the
Great Scot Award for Sport.
“A special thanks to this evening’s
sponsor Johnnie Walker,” joked
Torrance as Boisdale’s waiters dis-
pensed generous measures of
Scottish whisky to the tartan-clad
guests, “for helping me through
these last forty years.”
CITYA.M. 6 MAY 2011 News 11

Promotion for
Weak results The man to take the place
of St James’s founder
Henderson CIO
hit Schroders ASSET MANAGEMENT

▲
ANGLO-AUSTRALIAN funds house
Henderson has promoted its chief
FUND MANAGEMENT Gregson has more than 30 years investment officer (CIO) David Jacob

▲
share price
BY RICHARD PARTINGTON of experience in the financial servic- to its executive team, as part of a
es sector, having been responsible boardroom shake up.
CHARLES Gregson (pictured), the for the Garban businesses that Managing director James Darkins
chairman of money broker ICAP, is merged with Sir Michael Spencer’s was also promoted to become an exec-
to succeed St James’s Place founder Intercapital in 1999 to form ICAP. utive director on the fund manager’s
Mike Wilson when he He is also chairman of CPP board.
steps down later this Group, the credit card insurer Meanwhile, asset management vet-
year. currently being probed by eran Kevin Dolan will sit on the firm’s
City grandee the Financial Services board as a non-executive director.
▲

FUND MANAGEMENT “We had some private equity gains Wilson will relin- Authority (FSA). The appointments swell
BY RICHARD PARTINGTON in the first quarter of last year which quish his post as Gregson’s appoint- Henderson’s board to ten members.
we didn’t have in the first quarter of chairman almost ment came as St James’s
SHARES in British fund management this year. These are unpredictable and 20 years after he Place revealed a bumper
powerhouse Schroders slumped over
nine per cent yesterday, after it revealed
weaker-than-anticipated profits.
can be lumpy,” said chief executive
Michael Dobson.
Oriel Securities analyst Keith Baird
founded the fund
manager along-
side Lord
first-quarter perform-
ance. Sales over the
first three months of
Japan funds up
despite quake
The blue-chip investment firm post- said the market selloff was an overre- Rothschild and Sir this year leapt 18 per
ed an 11 per cent increase in profits action. “I think the market’s gone risk Mark Weinberg. cent to £157m, beating
over the first three months of this averse and anything with any flaws is He will become a analysts’ expectations.
year, after an unexpected loss on being kicked. To that extent I think it's “life president” of Funds under manage-
investments and a slowdown in retail an overreaction,” he said. the firm and take a ment were also up at
HEDGE FUNDS

▲
fund flows. Schroders’ shares closed 9.2 per more central role in St £28bn.
Pre-tax profit for the firm for the cent lower at 1,700p. James’s place’s chari- JAPANESE hedge funds have posted
three months to the end of March was table founda- steady gains over the first three
£104m, compared with forecasts of up ANALYSIS l Schroders tion. months of this year, despite the tur-
to £117m. Net inflows hit £3.1bn for 1,700.00 moil suffered in the country follow-
1,950 5 May
p
the firm over the first-quarter, giving ing its massive earthquake and
the firm funds under management of tsunami in March.
£201.4bn in total. 1,850 The volatile quarter for Asian finan-
While the core businesses of asset cial markets failed to dent Japan-
management and private banking focused hedge funds, which posted a
posted higher profits than last year, 1,750 capital increase of more than $4.6bn
the group segment which comprises (£2.8bn) to approximately $88.1bn,
returns on the company’s invest- according to Hedge Fund Research.
ments, saw a loss of £0.2m during the
period. ANALYSIS l Schroders
1,950

1,850

1,750

1,650
p

7 Feb 25 Feb 17 Mar

1,700.00

6 Apr
5 May

28 Apr
1,650
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr
CHARLES GREGSON The figure is the highest level since
a 2008 peak for the funds.
 12 News CITYA.M. 6 MAY 2011

Rise in income
CapCo to spruce up MEET THE ADVISERS

ROTHSCHILD £2bn in 2000, and Bryant Homes to at top PR firms

Covent Garden site
Taylor Woodrow for £400m in 2001.
ALEX MIDGEN The Queens Park Rangers fan
advised Elliott Bernerd in his acquisition

▲
of Chelsfield for £2bn in 2003, and Guy PROPERTY
Hands’s Permira in its £4.75bn acquisi-
tion of Viterra. He acquired Canary PR FIRMS saw an astonishing rise in
ROTHSCHILD acted as CapCo’s financial Wharf for US diamond and property fee income last year.
CapCo’s buildings at Covent Garden adviser on the share placing, led by head magnate Simon Glick for £5.5bn. The top 150 UK PR agencies
▲

PROPERTY
PROPERTY firm Capital & Counties
(CapCo) has announced a £100m share
placing, which it plans to spend on
revamping and adding to its Covent
Garden portfolio.
The company, formed last year
when Liberty International was bro-
ken up, is planning to sell 62.1m new
shares, worth almost 10 per cent of its
outstanding stock.
are valued at £640m, and include the
25,000 square foot flagship Apple store
in Bedford Chambers, opened last year.
“The new money raised from the
placing will accelerate our progress at
Covent Garden and we expect acquisi-
tions and projects at Covent Garden
funded by the placing to be accretive
to both estimated rental value and net
asset value per share over time,” said
chief executive Ian Hawksworth.
of real estate Alex Midgen. Midgen
recently advised Telereal on its acquisi-
tion of Trillium.
He has also advised on several other
capital raisings in real estate, including
Grainger, Songbird Estates and
Shaftesbury.
In 2004 he advised Glenmorangie on
its sale to LVMH. He was involved in sell-
ing MEPC to Hermes and GE Capital for
Midgen was hired by Rothschild in
1994. He was promoted to head of UK
real estate in 2004 and made a manag-
ing director. Later the same year he was
made a partner at the firm.
He was previously a chartered sur-
veyor at DTZ. He won the 2008
Rainmaker award for most successful
consumer and leisure deal originator in
the UK private equity mid-market.
brought in a total of £839m in fee
income, up from £814m in 2009,
according to a survey by PRWeek.
Bell Pottinger retained its position
as the UK’s largest PR agency by fee
income, with £68m, an addition of
nearly £8m from the previous year.
City PR firm Brunswick was in sec-
ond place with £53.2m. Edelman was
the top independent agency, with a
fee income of £29m.

Scrummy Zurich hit by

Sunshine Savers Japan and NZ
quake claims
profit of $637m, compared with an
▲

INSURANCE
BY HARRY BANKS
INSURER Zurich Financial Services
has posted a 32 per cent drop in
first-quarter profit from a year ear-
lier, a bigger fall than analysts had
expected, on big payouts from
catastrophes in New Zealand and
Japan.
The disaster in Japan is one of the
costliest natural catastrophes in
the history of global insurers, hav-
ing caused insured losses of $12bn
(£7.3bn) to $25bn, according to risk
modelling firm Eqecat.
analyst estimate of $766m.
Profit in general insurance, its
biggest segment, was driven down
56 per cent in dollar terms due to
the high catastrophe payouts.
This led to a deterioration of the
combined ratio – a measure of prof-
itability – to 103.6 per cent from 99
per cent a year earlier.
Zurich also said it had extended a
distribution agreement with
Deutsche Bank for life and general
insurance policies in Germany for a
further 10 years.
Shares in Zurich fell 3.5 per cent

.99
“Results were impacted by the yesterday on the Swiss Exchange to
significant catastrophe events in close at SwFr235.10.

23
the Asia-Pacific region during the
first three months of the year,” ANALYSIS l Zurich
235 235.10

£
Zurich said.
way
CHF 5 May
one taxes
“The slow economic recovery in

n
225

o
the US and much of Europe also
inc.

lli
impacted results.” 215

i
The Swiss-listed insurer said it

m ts from
6
205
had aggregate losses of $517m in
the first-quarter from Japan’s dev- 195

a
astating earthquake and other

se
185
regional disasters, compared to an
initial estimate for $500m. 175
Zurich posted a first-quarter net 7 Feb 25 Feb 17 Mar 6 Apr 28 Apr

Disasters take toll on Swiss Re

as it posts first quarter losses
finance chief George Quinn said.
▲

INSURANCE
SWISS RE has posted a first-quarter
loss due to big claims from natural
disasters in Japan, New Zealand and
Australia, saying 2011 was likely to be
Swiss Re posted a net loss in the
first-quarter of $665m (£405.8m), bet-
ter than a $999m loss forecasted.
Swiss Re’s asset management unit
saw a four per cent annualised return

Hurry, book early,

one of the highest ever natural catas-
trophe claims.
But the high disaster payouts, com-
save big! bined with low interest rates and
other factors, meant prices for rein-
suring property and casualty losses
would likely firm sooner than expect-
ed, Swiss Re said. Reinsurance prices
Price one way inc. taxes, availability and prices correct as at 26 April 2011. Available to book now while stocks last. had been falling.
For travel from 18 May to 30 September 2011 inclusive. Variable charges for hold baggage apply and some payment “We expect the market hardening,
methods attract a handling fee. See website for details. that we previously forecast for 2012-
2013, to take place much sooner,”
on investment, thanks to changes in
asset allocation and portfolio gains.
The world’s second-biggest reinsur-
er was already facing a high 2011 dis-
aster bill when the tsunami and
earthquake struck Japan, saddling it
with a further $1.2bn in claims.
Swiss Re already had charges of
around $800m from the earthquake
that struck New Zealand in February.
Yet said it could handle them and still
maintain significant excess capital.
CITYA.M. 6 MAY 2011 Economics 13

Rates held at 0.5pc

by Bank of England
March 2009 by the MPC, despite Richard Barwell, economist at RBS.
▲

UK ECONOMY
BY JULIAN HARRIS
ARCH hawk Andrew Sentance ended
his term at the Bank of England yes-
terday unable to convince his col-
leagues to normalise interest rates.
Sentance voting for a steady rise every
month from June of last year.
Three members of the nine-man
committee have voted for increased
rates since February.
Yet the minutes of April’s meeting
“Weale sounds like a man backing
off.”
From next month Sentance will be
replaced on the committee by
Goldman Sachs economist Ben Credit card rates have shot up far more than at the same time last year Picture: REX
Broadbent.

Credit cards charging the

Historically low interest rates were revealed that the other two hawks -- Broadbent is expected to be hawk-
kept on hold at 0.5 per cent for May, Spencer Dale and Martin Weale – ish, yet analysts say it is notoriously
the monetary policy committee were less convinced than Sentance on difficult to predict how new mem-
(MPC) announced. the need for tightening. bers of the committee will vote.

highest rates for 13 years

Today, coincidentally, marks 14
years since the Bank of England’s
independence was announced by
Gordon Brown, chancellor at the
time – sparking the creation of the
MPC.
And Weale’s recent comments sug-
gest that he may be harbouring sec-
ond thoughts. “First quarter GDP is
likely to be weaker than many people,
including myself, would have
assumed,” Weale had said.
“Most forecasters now think that
the tightening cycle will simply start
later this year,” said Deloitte’s Roger
Bootle yesterday, “but I am sticking
with my view that interest rates will
stay at one per cent or below until

▲
Rates have been held low since “It’s a big deal,” commented 2014.” UK ECONOMY Office of Fair Trading regulations and
the payment protection insurance rul-
CREDIT card interest rates have soared ing, both of which have dented rev-

NEWS | IN BRIEF
Malaysia hikes its interest rates
Malaysia’s central bank ended its rate-
hike pause yesterday, raising its key poli-
cy rate by 0.25 per cent to three per
cent, and ordered banks to set aside
more money in reserves to fight inflation
stoked by rising oil and food prices. The
Bank raised the Statutory Reserve
Requirement – the amount of cash
reserves banks must keep with the cen-
tral bank – to three per cent.
Price pressures felt in Philippines
Meanwhile, inflation in neighbouring
Philippines came in slightly above expec-
tations at 4.5 per cent in April, with core
inflation measuring 3.8 per cent.
CITY VIEWS: SHOULD THERE BE A CHANGE IN THE this year, it was revealed yesterday.
Since the start of the year, 18 credit
enue levels.
““It is unlikely we have seen the last
LAW TO STOP TUBE STRIKES? Interviews by Richard Partington cards have hiked the rates they charge
customers, compared to just four in
of the increases and we expect more
providers to follow suit,” said Michelle
the same period last year. Slade of Moneyfacts. “At the same,
MICHAEL ALBONE | VTB CAPITAL The average interest rate on plastic time, customers are now being offered
has hit a 13-year high of 19.1 per cent, the longest ever zero per cent balance
the website Moneyfacts calculated. transfer and introductory purchase
“Yes. I find it a bit annoying when they go on The hikes have coincided with fresh deals ever seen,” she added.
strike. It causes a lot of hassle for people. Bob
Crow is not exactly a popular figure and the
strikes are not worth what they are arguing for.” US rocked as claims for
MARK BROWN | HIGH FINANCE GROUP
“Yes. Every time they strike they seem to
unemployment leap up
ask for more demands. It reflects badly on
the unions. They should look at other serv-
▲

US ECONOMY Claims were pushed up by factors

Malaysia Airlines seat giveaway
Malaysia Airlines has today launched a
global cut price flight giveaway for busi-
ness and consumer customers. As many
as 10,000 seats are on offer from £305
return to Malaysia from Heathrow.
Drop in German factory orders
Factory orders in Germany unexpectedly
dropped in March, official data showed
yesterday. Orders were down four per
cent compared to February.
ices, like the police, that don’t act this way.”
THE number of Americans filing for
jobless benefits rose to an eight-month
TIM TUCKER | LFR SEARCH high last week and productivity
growth slowed in the first-quarter,
clouding the outlook for an economy
“Yes. I don’t know why the existing law doesn’t stop that is struggling to gain speed.
them already. I would support a change to make Initial claims for state unemploy-
ment benefits rose 43,000 to a season-
sure they had a significantly higher turnout before ally adjusted 474,000, the highest since
they could go on strike.” mid-August, the Labor Department
said yesterday,
ranging from spring break layoffs to
the introduction of an emergency ben-
efits program.
Economists had expected claims to
fall to 410,000.
A second report from the depart-
ment showed non-farm productivity
increased at a 1.6 per cent annual rate,
braking from a 2.9 per cent pace in the
fourth-quarter. The growth pace was
nonetheless above economists’ expec-
tations for one per cent.

Demand for London’s office space Eurozone rates stuck at 1.25pc as Trichet refuses
boosted by growing finance sector to signal another hike at next month’s ECB meeting
Surveyors (RICS) said. word understood to indicate immi- pricing, in recent days.” commented
▲

PROPERTY EUROZONE ECONOMY

FINANCIAL services are driving up
demand for London’s offices, a sur-
vey revealed today.
The market for office space in the
capital continued to outperform all
other regions in the UK and all other
commercial property sectors, the
Royal Institution of Chartered
Overall commercial tenant
demand grew in the first three
months of the year, with 10 per cent
more surveyors seeing a rise in
demand rather than a fall.
The results signal a broad recovery
in firms’ appetite to increase their
businesses, RICS said, with a positive
balance in demand across the UK.
EUROZONE interest rates were kept at
1.25 per cent yesterday with central
bank president Jean-Claude Trichet
suggesting that fewer hikes are on
the horizon than many analysts were
expecting.
Trichet declined to use the term
“vigilance” in his statement, the code-
nent monetary tightening.
“We will continue to monitor very
closely all developments with respect
to upside risks to price stability,”
Trichet said instead.
“This implies, on the basis of prece-
dent, that there will not be a rate hike
in June, contrary to the increase in
speculation, and the shift in market
Ken Wattret of BNP Paribas.
Euro government bond and inter-
est rate futures rallied on the back of
the statement, which was less hawk-
ish than expected.
Bund futures reversed earlier loss-
es, while Euribor futures, a market
barometer of Eurozone interest rate
expectations, also rebounded.
 14 Consumer News CITYA.M. 6 MAY 2011

Rexam knocked Carphone Warehouse in

by plastics unit smartphone sales surge
▲

CONSUMER
EUROPE’S largest drinks can maker
Rexam has reported first-quarter trad-
ing in line with its expectations, but
said the outlook for its plastic packag-
ing division was now more cautious.
Rexam, which makes cans for
Carlsberg and Red Bull and packaging
▲ RETAIL
CARPHONE Warehouse yesterday
raised its profit guidance for the third
time in six months, boosted by
demand for smartphones and its US
growth.
have been opened in partnership
with US electricals giant Best Buy.
Like-for-like sales at CPW Europe,
part of the Best Buy Europe joint ven-
ture, fell 1.7 per cent during the
fourth-quarter compared with a year The chain provided the bunting for the Downing Street wedding party Picture: GETTY
earlier.

Morrisons in royal boost

for healthcare and cosmetic products,
yesterday said it had seen weak trad-
ing in home and personal care and
make-up in its plastics business.
But the company said its beverage
can division had seen a better-than-
anticipated performance over the
Europe’s largest independent
mobile phone retailer raised its fore-
cast for earnings per share in the year
to 31 March to a range of 14.5p to 15p
from its previous guidance of 13.5p to
14p.
That was despite big losses antici-
But chief executive Roger Taylor
said: “We are well positioned to con-
tinue to capitalise on the rapid devel-
opment and proliferation of
smartphones and the ever-expanding
range of tablets coming to the market
despite the uncertainty around the RETAIL May. Chief executive Dalton Philips

period from 1 January.
pated at new UK megastores, which
economic environment.”
▲
BY JOHN DUNNE
PROMOTIONS and a surge in spend-
ing on bunting and picnics for the
royal wedding helped Morrisons beat
quarterly sales forecasts yesterday.
But Britain’s fourth biggest super-
market chain said it was wary of the
tough road ahead as customer spend-
ing come under more pressure.
Sales at stores open over a year rose
2.5 per cent, excluding petrol and
VAT sales tax, in the 13 weeks to 1
said: “A late Easter, having a royal
wedding and good weather were
three nice tailwinds.”
Sales were boosted by promotions,
such as Morrisons’ “Fuel Britannia”
campaign that offered customers 6p
off the price of a litre of petrol if they
spent £40 in the store. It sold over 100
miles of bunting in the run up to the
royal wedding, including that used to
decorate the party outside the resi-
dence of the Prime Minister in
Downing Street.

Diageo toasts
sales growth
tinued improvement in trade, which
▲

CONSUMER
BY JOHN DUNNE picked up in 2010 after suffering
throughout most of 2009 when the
THE world’s biggest spirits makers global downturn prompted con-
Diageo and Pernod Ricard beat fore- sumers to move to cheaper drinks
casts yesterday with strong sales and wholesalers to use up stocks
growth in the first three months of rather than make new orders.
2011 as buoyant emerging market
growth offset a weak Europe. ANALYSIS l Diageo
Diageo, the maker of Smirnoff 1,260 1,230.00
p 5 May
vodka and Johnnie Walker whisky,
reported its third-quarter January to 1,220
March underlying sales rose seven
per cent. 1,180
Meanwhile, French rival and world
number two Pernod, which makes
Absolut vodka, said quarterly under- 1,140
lying sales rose five per cent.
Analysts had pencilled in a 2.5 per 1,100
cent increase. The figures mark a con- 7 Feb 25 Feb 17 Mar 6 Apr 28 Apr

ANALYST VIEWS: CAN DIAGEO SUSTAIN ITS

TREND OF RISING SALES? Interviews by John Dunne

IAN SHACKLETON | NOMURA

“ We believe growth of five per cent in 2011 is achievable, and could

accelerate in 2012. This combined with a more aggressive attitude to building in

”
emerging markets and in M&A continues to make Diageo shares look
attractive. There was further improvement in price/mix in markets.

KEITH BOWMAN | HARGREAVES LANSDOWN

“ Diageo continues to reflect trends in the global economy, with a focus on

brand strength doing its part to appeal to the increasing ranks of the middle class-

”
es across the developing economies. As such, market consensus opinion currently
denotes a ‘buy’.

MARTIN DEBOO | INVESTEC

“ The information regarding performance in the UK would suggest that

Diageo is trading off a loss of volume against improved prices. In the longer term

”
that might prejudice a company’s share against its competitors in the
market.
 16 News
3i chief executive Michael Queen is upbeat
Mondi posts
progress but
warns on costs
▲
INDUSTRY
SOUTH African papermaker Mondi
yesterday warned rising input costs
were putting pressure on its margins
as it posted a rise in first-quarter prof-
it, driven by higher prices and sales.
Mondi said cost hikes would be
more moderate than the 12 per cent
rise seen last year.
“I would estimate that it would be
around a seven to eight per cent
range this year,” chief financial offi-
cer Andrew King said on a conference
call.
Underlying profit in the three
months to the end of March rose to
€187m (£166m).
The global paper industry is slowly
recovering from a slump triggered by
weak demand and overcapacity that
was exacerbated by the economic cri-
sis.
Mondi’s London-listed shares
closed up 2.55 per cent at 602.5p.
Talk of listing
lifts up M&P
▲
ENERGY
FRENCH oil explorer Maurel & Prom’s
(M&P) shares rose nearly five per cent
yesterday as the firm said it may seek
a separate listing for its Nigerian unit
and could distribute shares of this
unit to its shareholders.
Maurel & Prom said in a statement
its investment in SEPLAT, a 45 per
cent owned subsidiary of its wholly-
owned Nigerian business, “was not
fully reflected in the group’s share
price”.
But some analysts said the boost to
Maurel & Prom’s stock may be short-
lived as the strategy decision would
not add value to the parent company.
The firm’s shares closed at €14.68
in Paris trading yesterday.
Strong update buoys AZ Go-Ahead is at full steam
▲
TECHNOLOGY
SHARES in AZ Electronic Materials
rose 3.1 per cent yesterday at 288.9p
after the supplier of specialist chemi-
cals for chip makers said trading in
the first-quarter was strong, driven by
buoyant end-user markets.
Revenues in the quarter rose 27
per cent to $192.3m (£117m), the
firm said, adding that underlying
earnings were in line with expecta-
3i spin-off doubles income Costain trading
in line this year
▲
INVESTMENT
BY MARION DAKERS
INVESTMENT firm 3i Infrastructure
yesterday posted a 3.6 per cent rise in
total returns yesterday, giving share-
holders a 9.2 per cent return on their
equity.
The FTSE 250-listed firm also dou-
bled its portfolio income for the year
to the end of March to £69.3m.
tions.
“The forecast-beating recent
results from a number of
chip makers and electronics manu-
facturers... have clearly driven the
robust levels of demand for AZ’s
materials,” Brewin Dolphin says in a
note.
The earthquake-related disruption
in Japan, which accounts for 20 per
cent of AZ’s sales, has been handled
very impressively, added the broker.
The company invested a total of
£187.5m during the year, spending the
bulk of this on the purchase of
Eversholt Rail Group.
Cressida Hogg, managing partner at
3i Investments, which advises the
infrastructure fund, said: “The infra-
structure market continues to be rela-
tively rich in opportunities, with the
role of financial investors well estab-
lished.
TRANSPORT
BUS and rail group Go-Ahead expects
to beat its previous full-year profit
guidance after a strong performance
over the last three months, helped by
solid growth at its UK rail business.
The company, which operates com-
muter rail franchises through its
majority-owned joint venture Govia,
yesterday said UK rail revenues grew
by more than 10 per cent in the three
“The investment adviser’s compre-
hensive market access, focused invest-
ment strategy and solid operational
understanding of the asset class will
be key to achieving the company’s
return objectives in the years to come.”
Investment giant 3i Group floated
the firm in 2007 and remains its
investment adviser.
3i Infrastructure shares closed up
1.3 per cent at 117.2p.
months to 2 April and that sales at its
British bus business rose 9.8 per cent.
Go-Ahead said its US yellow school
bus venture was making progress.
Despite the positive UK perform-
ance the company said it continued
“to remain cautious about the medi-
um term prospects for the wider
economy”.
The update was the last one from
chief executive Keith Ludeman, who
retires in July.
CITYA.M. 6 MAY 2011
▲
CONSTRUCTION
CONSTRUCTION group Costain said
yesterday trading has been in line
with forecasts so far this year, with a
forward order book of £2.3bn.
Costain, which spent five months
unsuccessfully pursuing a takeover of
Mouchel earlier in the year, said
£850m in revenue has been secured
for 2011 so far.
The company also has a cash pile
“in excess of £100m, and has no sig-
nificant borrowings”.
Shareholders also passed all resolu-
tions at their annual meeting yester-
day. Costain’s shares closed down 0.9
per cent at 227p.
Aer Lingus in
profit warning
▲
TRANSPORT
IRISH airline Aer Lingus may ramp up
a controversial cost-cutting plan after
confirming profit this year will be sig-
nificantly below 2010 due to weak
demand and higher fuel prices.
Facing constant pressure from
Ryanair, Aer Lingus has cut routes,
staff and pay to survive and another
round of cuts could put it on a fresh
collision course with employees.
First-quarter revenues fell by five
per cent but average yield per passen-
ger rose by nine per cent due to a cut
in poor performing routes and an
increased proportion of business trav-
ellers.
Chief executive Christoph Mueller
said “the level of profitability will be
much lower” this year.
Galliford Try
raises forecasts
▲
PROPERTY
HOUSEBUILDING and construction
company Galliford Try yesterday
upgraded its profit forecasts for the
year as it saw a rebound in housing
demand and an improvement in
mortgage availability, sending its
shares to a 20-month high.
The company said it expected
results for the year ending June to be
significantly ahead of current market
estimates on a better-than-expected
spring selling season.
“Improvement in the mortgage
market and the shortage of supply is
getting worse as we go forward,” said
chief executive Greg Fitzgerald.
Shares gained seven per cent to
close at 441p.
Chief exec Keith Ludeman retires in July
CITYA.M. 6 MAY 2011
CEO Olivier Bohuon sees solid growth
Japan crisis
no threat to
AMEC sales
▲
ENGINEERING
BY HARRY BANKS
BRITISH oil services and engineering
group AMEC has said the outlook for
its nuclear unit was unchanged
despite the nuclear crisis in Japan, as it
reported a strong order intake for the
first four months of 2011.
AMEC said that its pipeline of orders
grew to £3.25bn on 30 April from
£3.14bn at the end of 2010, boosted by
contract awards in Chile and the
North Sea.
The company – which helps build
nuclear power stations and service oil
rigs – said trading in the first four
months of 2011 was in line with expec-
tations and it was confident of main-
taining a nine per cent earnings
margin this year.
AMEC’s outlook for its power divi-
sion has not been impacted by events
at a nuclear station in Japan and subse-
quent global focus on nuclear power,
the FTSE 100 company said.
Reviews on the safety of nuclear
power around the world were likely to
support the need for specialist nuclear
engineering, AMEC said.
“The outlook for AMEC’s nuclear
activity, which involves reactor sup-
port, waste management, decommis-
sioning and nuclear new build in the
UK, Canada and Central and Eastern
Europe, remains positive and
unchanged,” said the company. Shares
in AMEC, whose customers include BP
and EDF, closed flat at £11.82.
ANALYSIS l AMEC
1,240
p 1,182.00
5 May
1,200
1,160
1,120
1,080
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr
Metal prices boost earnings at Vedanta Randgold bullish for 2011
▲
MINING
INDIA-FOCUSED miner Vedanta
Resources posted a 29 per cent jump
in full-year earnings per share yes-
terday, on the back of strong metal
prices and a background of robust
demand for commodities.
Vedanta, founded in 1976 by execu-
tive chairman Anil Agarwal (pictured),
said yesterday its basic earnings per
share came in at $2.83 (£1.72).
Smith & Nephew boosted by US
▲
PHARMA
BY HARRY BANKS
ARTIFICIAL knee and hip maker Smith
& Nephew (S&N) posted a solid first-
quarter, helped by strong growth in its
US knees business, after rival Synthes
was snapped up by Johnson &
Johnson.
The British company reported trad-
ing profit of $241m (£147m) on rev-
The group posted a 28 per
cent rise in attributable profit
to £771m, on the back of a 44
per cent rise in revenues.
Vedanta’s earnings current-
ly depend largely on iron ore,
copper and zinc, but the
group has pursued a
strategy of diversifi-
cation and could
get as much as a
quarter of its prof-
enue four per cent higher at $1.06bn
yesterday, resulting in adjusted earn-
ings per share just ahead of market
forecasts at 18.4 cents.
S&N saw growth in its US knee unit
of 10 per cent, taking share from
major competitors, helping its
orthopaedic reconstruction business
grow two per cent in a flat market.
S&N attracted the attention of
Johnson & Johnson, according to a
its from oil and gas in three years,
if it succeeds in its bid to take con-
trol of Cairn India. Vedanta gave
no update on its bid to take con-
trol of Cairn India.
Vedanta has been caught up in
a dispute over royalty pay-
ments, and the two
sides have been wait-
ing for government
approval for almost
nine months.
source, before the US company agreed
to buy Switzerland’s Synthes for $21bn
in April.
The British company’s shares
remain well above the 618p they trad-
ed at before news of J&J’s approach,
indicating investors see an opportuni-
ty for further consolidation in the sec-
tor as competitors try to catch up with
a larger top player. Shares in S&N
closed up three per cent at 680p.
▲
MINING
WEST African-focused gold miner
Randgold Resources has said its profit
jumped 92 per cent in the first-quar-
ter and that it is on track to produce
at the upper end of its full-year guid-
ance.
Profit rose to $45.9m (£27.9m) from
$23.9m a year ago as gold production
grew 24 per cent to 139,403 ounces,
helped by its recently commissioned
News 17
ANALYSIS l Smith & Nephew
760
p
680.00
5 May
720
680
640
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr
NatExpress
profits help
rebuff Elliott
▲
TRANSPORT
BY HARRY BANKS
BUS and rail operator National Express
yesterday said growing first-quarter
profit showed it did not need the radi-
cal change of strategy called for by
rebel investor Elliott.
The transport group said growth
across all of its divisions had helped
pre-tax profit grow 30 per cent in the
first three months of 2011 and sought
to take the sting out of a row with its
largest shareholder Elliott Advisors,
which has called for a boardroom
shake-up and a change of strategy at
the company.
“No one is picking up arms to fight
each other but Elliott are our largest
shareholders with 18 per cent of the
company’s stock and deserve a voice –
they have put their money where their
mouth is and we are listening to
them,” chief executive Dean Finch
said.
Elliott, a US hedge fund, has recent-
ly accused the company of failing to
compete for new opportunities and
damaging shareholder value.
Elliott also wants National Express
investors to elect three new independ-
ent directors to push for changes at the
firm at its 10 May annual general
meeting.
Finch said the company was consid-
ering appointing a candidate proposed
by Elliott to its board. He said Chris
Muntwyler, a former head of DHL’s UK
business, was on a six-strong shortlist.
ANALYSIS l National Express
265
p
261.80
255 5 May
245
235
225
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr
Tongon mine in the Ivory Coast, and
on higher gold prices.
The FTSE 100 miner expects to pro-
duce between 750,000 and 790,000
ounces of gold this year, up 70 to 80
per cent on last year. “We are certain-
ly in the upper half of that guidance,”
said chief executive Mark Bristow.
Total group cash costs rose 19 per
cent to $744 an ounce from the year-
earlier quarter, but declined from the
fourth-quarter.
 18 News
CITY MOVES | WHO’S SWITCHING JOBS
Norton Rose
The law firm has appointed renewable energy
finance specialist Antje Günther as a partner in
the firm’s Frankfurt office. Günther, who joins
from DLA Piper, where she has worked since
2006, represents financial institutions, corpo-
rates and funds in domestic and cross-border
transactions. Norton Rose opened a third
German office in Hamburg on 1 May, with seven
newly appointed partners and one additional
partner joining from the firm’s London office.
McKay Securities succeed Alan Childs as finance director,
Giles Salmon has joined the property effective from August. Salmon was for-
development and investment group to merly finance director of BAA Lynton,
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
BEST OF THE BROKERS
ANALYSIS l Easyjet ANALYSIS l Next
p
2,300 p
400
342.90
380 5 May
2,100
360
340
1,900
320
7 Feb 25 Feb 17 Mar 6 Apr 28 Apr 2011
EASYJET NEXT
Nomura expects the airline to report a half-year pre-tax loss of £162m at JP Morgan Cazenove rates the retailer “underweight” and has raised its
its update next Tuesday, hammered by rising fuel prices and disruption in target price by 50p to £16.70. The broker was pleasantly surprised by the
North Africa. However, the broker expects the weakening dollar to give firm’s full-year results earlier in the week, despite falling consumer confi-
easyJet a rare tailwind, as it runs on a material short dollar position, and dence and footfall in the wider market. JP Morgan speculates that the
predicts a full-year profit of £160m as revenues per seat rise. Nomura warm weather has pulled forward revenues from the summer, and adds
maintains its “neutral” rating with a 470p target price. that its new target price still reflects substantial downside.
Lloyds leads slide in banking Commodity crash
stocks as FTSE loses ground sends US tumbling
than expected in April.
THELONDON The FTSE 100 closed down 64.09
points, or 1.1 per cent, at 5,919.98,
REPORT
having fallen 1.6 per cent on
Wednesday.
Volumes were heavy at more than
twice the average of the last 90 trad-
S
LIDING commodity prices ing days.
thumped energy stocks and Trade was dominated by the moves
miners while Lloyds Banking in commodity prices. Cruise company
Group led financials down, Carnival was the biggest riser, up 4.2
pulling Britain’s top share index per cent, as Brent crude fell by over
lower yesterday, with technicals five per cent. However the falling oil
pointing to further weakness. price also lifted International
Bearish investors came to the fore Consolidated Airline Group, which
as heavyweight commodity stocks added 2.8 per cent.
Royal Dutch Shell and Lonmin fell 1.8 Technical indicators pointed to
and 4.1 per cent respectively on lower scope for plenty of further weakness
crude and metal prices with the 19- within the current trading range,
commodity Reuters-Jefferies CRB analysts said.
index down 3.4 per cent. “I can certainly see [the FTSE 100]
Silver miner Fresnillo fell 4.6 per taking out the recent low around
cent as the metal was set for its worst 5,858 and it could go as low as 5,600,
week in 30 years. but it doesn’t necessarily mean that
Confidence that a global recovery the market will melt down,” said Phil
could keep demand for raw materials Roberts, chief European technical
growing was undermined by US data strategist at Barclays Capital.
showing initial jobless claims rose to He added that on the upside it
an eight-month high last week. would be unlikely to push much
This made investors nervous ahead beyond the 6,000 level.
of today’s non-farm payrolls data. Banks fell after Lloyds Banking
“Investors are positioned to the Group, down eight per cent in heavy
downside for the data, so even if it trade, took a £3.2bn hit for mis-selling
just matches expectations there’s debt repayment protection insur-
likely to be some recovery in stocks,” ance.
said Richard Hunter, head of equities British blue-chip investment man-
at Hargreaves Lansdown. ager Schroders tumbled 9.2 per cent
UK data highlighted the fragility of after suffering an unexpected loss on
the domestic recovery as Britain’s its investments in the first quarter.
dominant service sector slowed more A decision from the Bank of
the commercial property arm of British
Airports Authority.
Barclays Wealth
The wealth management firm has
appointed Carole Cheung as managing
director, senior client partner, based in
Hong Kong. Cheung, who has been pro-
moted from the position of managing
director, relationship management, will
focus on managing the relationships of
ultra high net worth clients in Asia.
Weir Group
The engineering group has appointed
Melanie Gee to the board as a non-
executive director. Gee is a managing
21 Feb 7 Mar 28 Mar
England to keep rates on hold gave
slight support for a short time to the
index as some investors thought
there was a small chance rates may
rise.
A more dovish stance than some
expected from Jean Claude Trichet,
president of the European Central
Bank, at a post decision press confer-
ence, after it too kept rates on hold
reassured investors that monetary
policy would not derail a shaky recov-
ery.
While the overall mood of traders
was downbeat, some company results
offered a glimmer of optimism.
Smith & Nephew rose three per
cent, after the artificial knee and hip
maker posted solid first-quarter
results, prompting Investec Securities
to upgrade its rating to “buy” from
“hold”.
Drinks maker Diageo and Wm
Morrison Supermarkets rose 1.5 and
one per cent respectively after both
beat forecasts for the first three
months of 2011.
ANALYSIS l FTSE 5,919.98
6,100 5 May
6,000
5,900
5,800
5,700
5,600
5,500
7 Feb 25 Feb 17 Mar 6 Apr
Edited by Harriet Dennys
director in Lazard’s UK investment
banking business and was previously a
managing director at UBS.
Bluefin
Bluefin Wealth Management has
appointed Chris Durnian as a financial
planner, based in the London office.
Durnian joins from Lloyds Wealth
Management, where he was a wealth
management adviser.
Cannacord Genuity
The AIM-listed independent broker has
recruited Peter Mallin-Jones as director
of mining equity research. Mallin-Jones
joins from Goldman Sachs, where he
To appear in Best of the Brokers email your research to notes@cityam.com
2,300.00 ANALYSIS l Weir
5 May 1,800 p
1,400
1,000
11 Apr 3 May 2011 21 Feb
WEIR GROUP
Credit Suisse rates the engineer “outperform” and has lifted its target price
from £18.35 to £21.30. The broker has also raised its 2011 profit forecasts
by eight per cent following a bullish interim management statement earlier
in the week, signaling strong earnings momentum for the rest of the year.
Credit Suisse’s pre-tax profit estimate of £381m is six per cent ahead of
consensus, and its target price now represents 10 per cent upside.
THENEW YORK
REPORT
U
S stocks fell for a fourth day
yesterday as a massive sell-off
in commodities spilled into
other markets, forcing
investors out of riskier assets and rat-
tling the equities market before
today's payrolls data.
Oil suffered the biggest one-day
price drop ever for the Brent futures
contract, which settled down 8.6 per
cent at $110.80 per barrel. That drove
oil shares lower, making the energy
sector the worst performer on the
S&P as it fell 2.3 per cent.
The Dow Jones industrial average
dropped 139.41 points, or 1.1 per
cent, to 12,584.17. The Standard &
Poor’s 500 Index fell 12.22 points, or
0.91 per cent, to 1,335.10. The Nasdaq
Composite Index lost 13.51 points, or
0.48 per cent, to 2,814.72.
The S&P 500 fell through its 14-day
average but closed above 1,333, a
level that could become an impor-
tant market support, limiting future
losses.
The CBOE volatility index jumped
above its 50-day average before clos-
ing up 6.6 per cent at 18.20, its high-
est closing level since 28 March. The
move signals investors are willing to
28 Apr
pay more for protection for their
CITYA.M. 6 MAY 2011
in association with
was vice president and head of mining
and metals research.
Arbuthnot Securities
The investment banking arm of
Arbuthnot Banking Group has appoint-
ed Michael Loungo as a research direc-
tor, covering financial services. Loungo
joins from Liberum Capital, where he
was a research analyst.
Fenchurch Advisory Partners
The specialist investment bank has
appointed Guy Miller as managing
director. Previously, Miller was head of
European financial institutions M&A at
Royal Bank of Scotland.
+ 44 (0) 207 092 0053
morganmckinley.com
1,850.00
5 May
7 Mar 21 Mar 4 Apr 18 Apr 3 May
equities exposure.
Adding to a recent spate of poor
economic data, weekly applications
for unemployment insurance rose to
an eight-month high, setting off
alarms a day before the April unem-
ployment report.
“It may very well be the case that
the commodity price bubble has
burst,” said Hugh Johnson, chief
investment officer of Hugh Johnson
Advisors.
Silver prices were set for the deep-
est weekly decline in nearly 30 years.
The iShares Silver Trust exchange-
traded fund tumbled 11.9 per cent.
The Reuters/Jefferies CRB index
that tracks commodity prices fell 4.9
per cent and was on track for its
biggest weekly fall since late 2008.
About 9.2bn shares traded on the
New York Stock Exchange, NYSE
Amex and Nasdaq, in a third consec-
utive trading volume above the year's
average.
Declining stocks outnumbered
advancing ones by a ratio of about
eight to five on both the NYSE and
Nasdaq exchanges.
Consumer-related shares also fell
but were the best performers as the
drop in crude was seen lessening the
financial burden on individuals of
high gasoline prices.
US retailers earlier warned of ris-
ing costs and cautious consumers
even as a late Easter boosted sales of
clothing and other holiday-related
items in April, helping many beat
sales expectations.
On Time
19

Edited by Timothy Barber

BLUE
is the colour
The best new watches for Spring 2011

page
GONE DIVIN’
20 page 22
GETTING TO KNOW PATEK
page 28
UNDER THE DIAL
Wristewear that works The family values of the The work involved in the
with a blazer as well eminent manufacturer art of fine watch making
as a wetsuit
 20 | On Time CITYA.M. 6 MAY 2011

Diving
PANERAI,
RADIOMIR 8
DAYS CERAMICA
£8,900
WWW.PANERAI.COM

for treasure
Even if they never get wet, diver’s watches
offer sophisticated options, says Timothy Barber HUBLOT
OCEANOGRAPHIC
4000

E
VEN in the age of smartphones,
iPads and all the other digital accou-
trements that happen to tell the
time among their other functions,
the essential job of a watch is still intact.
People who wear watches, whether it’s a
£10 quartz job or something far more
splendid, look at their watches to see what
the time is. Always will.
But functionality is something of a slid-
ing scale. Not many people with chrono-
graphs (the stopwatch function) in their
watches use them for measuring time, and
I’ve yet to meet anyone who has ever used
the rotating calculator in the bezel of
Breitling’s famous aviation watch, the
Navitimer, to calculate whatever the heck it
is it’s meant to calculate.
And if you’re a scuba diver, there are now
more sensible, computerised devices to
strap to your wrist than a luxury
mechanical watch.
That, however, is no reason
not to own a diving watch. As
a stylistic category, they’re
rugged, sporty and cool.
They suggest a spirit of
adventure, but they’re gen-
erally sophisticated and
sleek enough to work with a
suit as well as when
you’re dressed
down.
In engi- OMEGA
neering SEAMASTER
t e r m s , PLANET OCEAN
they’re good
£4,740
platfor ms
WWW.OMEGA.COM
for technical
one-upman-
ship – why else would Hublot’s new diving €14,700
watch, the Oceanographic 4000, be water-
proof to 4000 metres? (For those unac- SEIKO WWW.HUBLOT.COM
quainted with wetsuits and flippers, ANANTA
standard scuba equipment takes you to a AUTOMATIC
maximum depth of around 60 metres). CHRONOGRAPH
Arguably the most beautiful diving
watch released this year is not actually a
£3,500
new design at all, though it’s inner tech WWW.SEIKO.COM
is bang up to date. Jaeger-LeCoultre’s
Memovox Deep Sea was its first diver’s
watch, developed in the 1950s, was the
first underwater watch with an alarm
system. The highly limited re-edition
reveals the stunning elegance of this true RICHARD MILLE
classic. RM032
At the other end of the scale, Richard
Mille’s remarkable RM032 chronograph CHRONOGRAPH
must win the prize for the coolest new div- £95,000
ing watch, all interesting angles WWW.RICHARD-
and a customary skeletonised MILLE.COM
dial. Seiko, meanwhile, coun-
ters the rugged sportiness
of the diving watch with a
dial jet black dial that’s
been hand-lacquered by
one of Japan’s most
renowned artisans, Isshu
Tamura.
Panerai, the brand
whose military diving
watches have become JAEGER-
such fashionable icons in LECOULTRE
the past decade, goes for a MEMOVOX TRIBUTE
stealthy black look too with TO DEEP SEA
its ceramic Radiomir, while
Omega’s Planet Ocean comes £8,250
in a chronograph function WWW.JAEGER-LECOUL-
with the brand’s legendary TRE.COM
co-axial movement.

NEWS FROM THE BOUTIQUES

ROLEX COMES TO ONE HYDE PARK
It’s got a slew of the most expensive properties
ever sold in the world, and now One Hyde Park,
the Candy & Candy development in
Knightsbridge where one flat is said to have
gone for £136m, has also recently become
home to Rolex’s biggest London showroom.
Owned and managed by Time2 (the company
which manages watch sales in the Selfriges
Wonder Room), it covers 3,000 square feet of
retail space, including a couple of dedicated pri-
vate suites behind sliding walls for VIP clients.
There’s also an expert Rolex watchmaker onsite
who can advise on all the technical aspects as
well as doing services and repairs in a purpose-
built workshop.
Key brand: Rolex, obviously
Rolex by Time2, One Hyde Park, 100
Knightsbridge, SW1X 7LJ. 020 7292 0345
www.rolex.com; www.time2.co.uk
MARCUS LAUNCHES ALMAR
Bond Street’s legendary emporium of ultra high-
end timepieces, Marcus, is the kind of place you
head if you’re prepared to spend six figures on
your next item of wristwear. However, it’s now
opened a second premises in the Burlington
Arcade, named Almar [pictured right], where it’s
offering models that no longer form a part of
Marcus’s current collection at a minimum dis-
count of 30 per cent. In some cases the saving
will be up to 70 per cent, an incredible bargain
for groundbreaking brands such as Audemars
Piguet, Franck Muller, Hublot, Piaget and de
Grisogono. A great chance to pick up a watch
you always wished you were able to buy when it
was first launched.
Key brands: Audemars Piguet, Franck Muller
Almar, 22 Burlington Arcade, W1J 0PR 020
7493 1409 www.almarwatches.co.uk
WILLIAM & SON
Another Mayfair favourite, Mount Street’s William
& Son, crossed the line from seller to manufacturer
last year, on a strictly one-off basis, creating an
ultra-limited line of beautiful, deco-infused watches
to celebrate the shop’s 10th anniversary. I’m told
there are still a couple or so available – worth get-
ting one’s hands on. William & Son has also brought
in watch-mad racing driver Mark Blundell as its
ambassador. The William & Son logo will be on
Blundell’s car when he races with his team, United
Autosports. And staying with the motoring theme,
William & Son will be exhibiting at this year’s
Goodwood Festival of Speed for the first time.
Key brands: Jaeger-LeCoultre, H Moser & Cie
10 Mount Street, W1K 2TY. 020 7493 8385
www.williamandson.com
DAVID M SIMON
Canary Wharf’s home of horology, which has the
largest Patek Philippe corner in the UK, has intro-
duced Hublot to its brand portfolio, and is expanding JURA WATCHES
its range of Vertu luxury phones which it sells along- The Mayfair shop, which is pioneering online sales of
side watches. In June it’ll be hosting a pop up show- watches, is launching an iPhone virtual watch app in
room to launch IWC’s snazzy new Portofino models. July. It’s just taken on great-value brand Nomos too.
Key brands: Patek Philippe, Cartier Key brands: Bremont, U-Boat, Bell & Ross
45 Bank Street, E14 5NY, 020 7538 2332. 3 Burlington Gardens, W1S 3EP, 0800 01102704
www.davidmrobinson.co.uk www.jurawatches.co.uk
 22 | On Time
KEEPING IT IN THE
Family
Timothy Barber meets Thierry Stern, president
of the world’s most prestigious watch brand
F
OR the collector or connoisseur, accu-
racy in a watch really is most impor-
tant,” says Thierry Stern, president of
Patek Philippe, when asked about his
company’s core values. “At this level and
these prices, if you’re going to buy a watch
it has to be absolutely accurate.”
Obvious, right? Maybe on the face of it –
but the fact is, centuries after the invention
of the first wristwatch, timekeeping accu-
racy remains the pre-eminent challenge for
manufacturers. Meddlesome factors like
temperature, magnetic fields, the perni-
cious effects of lubrication, even air resist-
ance can cause a fine mechanical
timepiece to lose or gain several sec-
onds a day; the elimination of
such inefficiencies is one
thing that separates the
leaders from the mere
pretenders.
That Patek Philippe is
one of the leaders is
beyond dispute – it’s
seen by many as the
most exalted watch
brand of all.
It has the historic
prestige – its watches
have been prized in the
highest echelons of
society since Antoine
Patek founded the com-
pany in 1839, and fetch
phenomenal auction
prices (new ones range from
around £10,000 to several
hundreds of thousands); it has
the beautiful designs – just drink
in the elegant proportions and
simple clarity of its Reference 5270
watch [right], launched this year at
Baselworld, to see the understated
classicism for which Patek is famed;
and it has the technical superiority – it’s
forging new paths in accuracy and efficien-
cy using cutting-edge silicon technology.
ACCURACY AND BEAUTY
“Perfection is not something I’m able to
reach; but people expect from Patek that
we are doing the best we can to achieve the
ideal mix of accuracy and beauty,” says
Stern, and its hard to disagree.
There’s one more crucial factor, however,
that sets Patek apart – family. Where most
of the industry’s old family-run businesses
have now been turned over to shareholders
or swallowed up by luxury conglomerates,
A HISTORY OF INNOVATION: PATEK PHILIPPE TIMELINE
1839 Antoine Patek and Francois Czapek found Patek,
Czapek & Co in Geneva
1844 Antoine Patek and Jean Adrien Philippe start
working together
1868 Patek Philippe creates the first Swiss wristwatch,
made for a Hungarian countess.
1922 Patek Philippe makes the first split-seconds
chronograph wristwatch
CITYA.M. 6 MAY 2011
Patek Philippe is among the last, and is cer-
tainly the most prominent, to maintain
family-owned independence. In 2009 Stern
took the reigns from his father Philippe
(Stern senior remains honorary president),
and is the fourth successive Stern to run
Patek since his great-grandfather bought
the company in 1932. His wife Sandrine
even runs Patek’s creative department.
All of which could seem like a stubborn,
risky refusal to bend with the times, but at
Patek it has been the opposite.
While the faddy, shareholder-pleasing,
marketing-led practices of many other
brands left them vulnerable in the reces-
sion, at Patek, which never goes near a Above, Thierry Stern pounds that it can market to death – personal pride and stewardship of a family
celeb endorsement and where even (right) with his father whether they serve much purpose may be legacy as much as corporate necessity – the
product names are merely ultra-dis- Philippe; inset, Patek beside the point if they seem futuristic one begets the other, and vice versa. He
crete reference numbers, growth Philippe’s boutique in enough. Silicon – modern, synthetic, heavi- jokes that where his clients receive a Patek
was maintained through the Geneva. ly associated with technological advances, watch from their fathers (as per the compa-
down period. That’s because, but mysterious nevertheless – is increasing- ny’s famous father/son ads) he received a
Stern says, at Patek Philippe Left, Reference 5270G ly the subject of such excitement, and watch and a factory as well. And like his
the watches come first. Stern foresees it inspiring the kind of activ- clients, he’s merely looking after it for the
perpetual calendar
ity that he abjures. generation that comes after.
chronograph, intro-
PATEK’S DNA “Soon a brand will bring out a 100 per “You are a kind of goalkeeper for a game
“When I started with the duced this year. cent silicon movement. Why? It doesn’t but it’s only one game,” he says. “Patek
company years ago, I £108,120 help at all,” he sighs. “It really helps the Philippe was here before I was born, and
started with the prod- escapement, but after that it’s a gimmick – will be here long after I’m gone. The next
ucts,” he explains. “My this is what you have to watch out for.” game – you have to train the next genera-
father said to me: ‘of For Stern, doing just that is a matter of tion for that.”
course you need to
understand the whole
financial side, but you
can hire professionals for
that. Now, to hire some-
Three crucial Patek Philippe watches
one who understands the
DNA of Patek, there is no REF. 3700, 1976: THE
school for this, you won’t FIRST NAUTILUS
find someone else.’ Patek’s first sports
“This is the know-how we watch was designed by,
have, and that we have to give Gérald Genta, a genius
to each generation of the obsessed with octagons
Stern family,” he continues. who also made the first
“It’s transmission by talking and lis- luxury sports watch,
tening and learning. What people expect Audemars Piguet’s Royal
from Patek is a continual evolution, one Oak. Since the Nautilus’s
that is useful rather than about gimmicks.” 30th anniversary redux
Which brings us back to accuracy, and in 2006, the potential of
the subject of silicon. Since 2005 the com- that muscular case
pany has been pioneering the use of low- shape has been unlocked
density silicon – more efficient and precise to give us a more-mod-
in its movements than lubricated metal – ern-than-ever collection.
in escapement components. It has created
a tiny assemblage of silicon parts, newly
completed and given the zingy name
Oscillomax, which will bear a radical influ- REF 5119J, 2007 – THE REF 5170J, 2010 –
ence on future watch designs. PERFECT CALATRAVA A NEW CLASSIC
The watch industry falls over itself to Simple, classic and time- The all-new manual-wind
adopt exciting new materials and com- less (so to speak), the CH 29-535 movement –
Calatrava collection is found in last year’s rarer-
named after Patek than-hen’s-teeth 5170J –
Philippe’s trademark
cross motif. Introduced
continues Patek’s tradi-
tion of chronograph inno-
in 1932, its elegant lines vation. Its patented
1932 Brothers Jean and Charles Stern purchase the lend copious scope to refinements include opti-
company; the Calatrava collection is launched. play with numerals mised tooth profile and
1959 Patek Phippen patents its Time Zone Watch (Roman, Arabic, batons), improved penetration
movement dial decoration (guilloché, adjustment between the
1989 To celebrate 150 anniversary, Patek Philippe cre- lacquer, silvered) and clutch and chronograph
ates the most complicated portable timepiece ever. size. On every budding wheel via a large column-
2005 Patek Philippe Advanced Research launches a collector’s wishlist. wheel cap.
watch with a silicon escape wheel.
 24
Above, pith-helmeted Blashford-Snell leads the Darien Gap expedition; centre, the Zenith El Primero
chronograph he wore; right, Blashers in the jungle; below right, Zenith’s new El Primero Stratos Flyback
PURE PERFORMANCE PURE BREITLING
CHRONOMAT
The benchmark in the field of mechanical
chronographs, equipped with an ultra-
sturdy case that is water-resistant to 500
meters (1,650 ft), and with Manufacture
Breitling Caliber 01, the most reliable and
high-performance selfwinding chronograph
movement, chronometer-certified by the
COSC.
£ 6840*
For your nearest stockist in Great Britain and Ireland telephone 020 7637 5167
W W W.B REI TLING.C O M
| On Time
An awfully big
adventure
The British explorer
who took a Zenith
watch to the edge
of endurance
I
N the entire American conti-
nent, the Darien Gap is pretty
much the last place you’d want
to find yourself. A 250-mile
stretch of hellish jungle and mosqui-
to-ridden swampland between
Panama and Colombia, it’s a place
even the region’s native Indians gen-
erally steer clear of – though
it does have an itinerant
population of guerrillas,
drug runners and other
desperados who’ll finish
you off if the treacher-
ous landscape doesn’t.
Not really some-
where to try and drive
a car through, then.
Colonel John
Blashford-Snell, the
world-famous British
explorer, neverthe-
less did just that in
*RRP. Subject to change without notice.
1972 – he led a team
crossing the region in
Range Rovers, an almost
impossible task. He men-
tions the “terrain, insects,
disease, weather, bandits,
mechanical breakdowns and
human exhaustion” as factors
that made it the toughest chal-
lenge he has ever faced.
Forty years on, Blashers (as he’s
known) – a figure in the great tradi-
tion of eccentric British adventurers,
and still leading trips into far off
places like Ecuador, Mongolia and
Burma – is being toasted in the rather
more genteel milieu of the Swiss
watch industry.
RUGGED
An eagle-eyed Zenith employee spot-
ted an old press cutting revealing
that Blashford-Snell and his team
were supplied with Zenith El Primero
watches for the Darien expedition. As
a result, a commemorative edition of
Zenith’s ruggedly handsome new
sports watch range, the El Primero
Stratos Flyback, has been created in
his honour. It’s something that
should appeal to those with a yen for
CITYA.M. 6 MAY 2011
a bit of jungle adventuring.
“A watch is essential for an explor-
er, and it must be robust, luminous,
waterproof and reliable, and ideally
self-winding,” says Blashford Snell.
His original El Primero was all
those, and appears to have been
robust in particular – not only did it
continue ticking away in the jungle
while the cars were suffering serious
technical faults, it was worn regularly
on subsequent adventures too and
has required servicing just once.
Blashers has now donated the watch
to Zenith’s archive in Neuchatel in
Switzerland, where it will feature in a
planned Zenith museum.
ARMOUR-PLATED
The Stratos is essentially a juiced-
up, armour-plated housing for
Zenith’s re-invigorated El
Primero movement, often
hailed as the best chrono-
graph mechanism ever
created. It’s just the
kind of sturdy-but-
sophisticated thing
you can imagine
wearing while
crashing about in
the jungle, though
its flyback function
(one press of a but-
ton resets and restarts
the chronograph stop-
watch, rather than the
normal three presses of
two buttons) is actually
designed for quick use
by pilots.
There’s an aviation
link to the materials
too: as well as a steel edi-
tion, the Stratos can come in
black Alchron, an ultra-tough alloy
used in jet fighters.
For those able to pay a bit more,
there’s the Striking 10th version, in
which the central chronograph sec-
ond hand whips around the dial
every 10 seconds, measuring time to
one 10th of a second.
But one suspects it’s the Blashford-
Snell limited edition that will appeal
to chaps who savour a bit of old-fash-
ioned British derring-do.
Just leave it to the professionals to
take such a watch anywhere near the
Darien Gap.
Timothy Barber
Zenith El Primero Stratos Flyback from
£4,800; Blashford Snell limited edition
£5,500. www.zenith-watches.com
 IWC Pilot.
Engineered for aviators.

Big Pilot’s Watch. Ref. 5004: Your wrist never felt this big before. The case of the top model in the IWC Pilot’s
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Pellaton automatic winding system | 7-day power reserve with display | Date display | Soft-iron inner case for protection
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www.TIME2.co.uk/iwc
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Ariel Way, London, W12 7GD
Tel: 020 7292 1245

2002465_F0A_259x350_p_Time2_TZ_4c_en_V2.indd 1 05.05.11 15:52

 26 | On Time
NOVELTY
Timothy Barber headed to the Swiss town
of Basel to pick the best new creations at
the world’s biggest watch fair.
I
MAGINE an enormous aircraft
hanger turned into Bond Street,
repeat that several times, and
you’ve an idea of what Basel’s
annual watch industry knees up,
Baselworld, is like. The March event
has thousands of brands on show,
and tens of thousands of dealers, buy-
ers and industry executives (oh and
the odd journalist) eyeing them up.
In such an environment, it’s often
the most out-there designs and
extreme inventions which catch the
eye. Yet this year two of the most
interesting watches were entry-level
pieces for their brands. Zenith, a
resurgent brand with a great tradi-
tion of craftsmanship behind it, creat-
ed waves with its new Stratos sports
watch, featured on page 24. But of
equal note was its Pilot Chronograph,
a brand new line containing (as does
the Stratos) Zenith’s legendary El
Primero movement. With just two
subdials and beefy military-themed
markers and hands on a black face,
it’s a dynamic piece and great value
for an El Primero watch. Meanwhile
Bremont, the small British brand
which punches far above its wait with
its smart, robust aviation watches,
launched the sleek, three-handed BC-
Solo. It’s thinner than Bremont’s
other watches but just as tough, and
its effortlessly cool design would suit
a Savile Row suit as well as it would a
rugged flying jacket. The £2,550 price
tag is pretty sleek too.
“Retro” is a common enough
theme with watch brands, though as
past eras go, the Seventies have rarely
been in favour since, well, about 1980.
Suddenly, though, the watch indus-
try is breaking out its chest wigs,
medallions and sidies with some neat
Seventies-inspired pieces. The ever-
affordable Hamilton (once American,
now Swiss) brought out a chunky
new version of its 1971 Pan Europ
chrongraph, the watch equivalent of
checked bell-bottomed trousers,
while Glaschutte Original’s Seventies
Panorama Date ought to come with
its own disco soundtrack and deep
shag-piled bachelor pad.
Aviation brand Breitling was also
following a retro trend, though a
somewhat earlier one with its suave
Transocean chronograph, a new line
named after a model launched in
1958 and featuring Bretiling’s in-
house Caliber 01 movement. Among
the other marquee names, Rolex
revamped its Explorer II, which has
grown to 42mm in width (big for
Rolex) and features a new, enlarged
movement and a snazzy orange GMT
CITYA.M. 6 MAY 2011
GLASHUTTE ORIGINAL,
70S PANORAMA DATE
£7,400
hand. Over at Omega, as well a
sleek new Speedmaster, the
brand attracted attention with
its Hour Vision Blue – this
supplement’s cover star.
Created to raise money for
the charity Orbis
International, it’s notice-
able for its gorgeous blue
dial.
In fact blue was a
noticeable trend – take ZENITH, EL PRIMERO PILOT
Cuban-inspired brand £4,200
Cuervo Y Sobrinos’s ele-
gant Historiador dress
watch, for instance, or
TAG Heuer’s Carrera
Heritage Blue with its
eye-catching, burnished
blue hands. JAQUET DROZ, GRANDE
Hermes also went SECONDE QUARTIEME
down the blue route with CUERVO Y SOBRINOS,
the latest version of its
£6,600
Clipper chronograph div- HISTORIADORE PEQUENOS
ing watch, though of SEGUNDOS, £1,935
more note was its bizarre,
if elegant, Temps
Suspendu. This is a watch
designed to stop – hit a but-
ton, the hands stop turning
and you don’t have to worry
about time. Good for sitting
back and enjoying a long
lunch, perhaps. Hit the button
again, and it picks up at the
right point. As horological con-
ceits go it’s as daft as a brush, but
it looks awfully smart with it. As
does Seiko’s new release from
its top-of-the-range Grand
Seiko line, a renewal of the
original Grand Seiko from
1960, and Hublot’s under-
stated (for Hublot) chrono-
graph.
Lastly, a word of praise
for Jacquet Droz, a brand
that’s less well-known in
the UK. It’s sublime dress
watches, perfectly mixing
oversize proportions with
formal elegance and crisp
style, stopped me in my
tracks every time I passed
them.
www.zenith-watches.com TAG HEUER, CARRERA
www.bremont.com
www.hamiltonwatch.com
HERITAGE BLUE, £1,695
www.glashuette-original.com
www.breitling.com
www.rolex.com
www.omega.com BREMONT, BC-SOLO
www.cuervoysobrinos.com HAMILTON, PAN EUROP £2,550
www.hermes.com £1,310
www.seiko.com
www.jaquet-droz.com
 CITYA.M. 6 MAY 2011 27

Extreme engineering: TAG Heuer’s Mikrotimer

B
ASELWORLD wouldn’t be
Baselworld without a scene-steal-
ing unveiling by TAG Heuer – a
trend started back in 2004, when
the rubber-belt-driven V4 concept was
BREITLING, TRANSOCEAN revealed to an incredulous crowd. Five
CHRONOGRAPH years later, the concept was a reality, and
£6,210 we all learned to treat TAG Heuer as a seri-
ous player in experimental horology. Last
year’s magnet-regulated Pendulum con-
firmed our suspicions, and this year’s
Mikrotimer looks set to become yet anoth-
er milestone for the sports-watch brand.
TAG Heuer has pioneered high-frequency
timing since 1916, the year Charles-August
Heuer introduced the 1/100th Mikrograph
stopwatch. With the Calibre 360 in 2005,
TAG Heuer introduced the first-ever wrist
mechanical chronograph measuring and
displaying 1/100th of a second – a feat
achieved by integrating a secondary high-
frequency (50Hz) movement alongside the
4Hz time-telling movement. This year’s
Mikrotimer turns things up to 11, with a
secondary chronograph movement vibrat-
SEIKO, GRAND SEIKO ing at the frankly mind-boggling rate of
ANNIVERSARY EDITION 500Hz – more than three times faster than
£15,000 the pistons of an F1 engine cranked to max-
imum speed – turning the usual “tick tick
tick” into a frantic buzz, and allowing time
measurements accurate to 1/1000th of a
second. Goodness knows how they’ll top
this next year… Alex Doak

HUBLOT, CLASSIC FUSION

CHRONOGRAPH
PRICE ONN APPLICATION

HERMES, ARCEAU LE TEMPS

SUSPENDU,
£11,320

ROLEX, EXPLORER II
£5,180
 28 | On Time
BECAUSE IT'S WORTH IT
You may pay a lot for
a fine watch, but
every one is a feat of
remarkable technical
skill, writes Alex Doak
I
F YOU ever hear anyone discussing
whether expensive watches are really
worth the money that’s charged for
them, try this true story on them.
While snorkeling off the Great Barrier
Reef some years ago, a chap wearing a
Rolex inadvertently knocked it against an
outcrop. Torn from his wrist, the watch
tumbled into the depths, lost forever. Or
so he thought.
Eight years later it was discovered,
almost fully swallowed up in the coral, by
another diver. It was chipped out, reunit-
ed with its owner via the case reference
number, and you know what? It still func-
tioned perfectly. Its case hadn’t leaked a
drop of seawater and with a quick shake,
the winding rotor inside spun with a muf-
fled whirr, injecting life into the move-
ment once again, the seconds hand
instantly resuming its steady sweep of the
dial.
Rolex may be name-checked by rappers
alongside Courvoisier and Cadillacs, but
the kind of technology that survives
under water for years is about a lot more
than mere bling. Incredible effort and
skill is involved in precision-machining,
polishing, assembling, testing, disassem-
bling, adjusting and finally re-assembling
the hundreds of components inside a
mechanical watch. And then there’s the
small matter of engineering that water-
tight case to within micrometre toler-
ances. And what about the dial
decoration, or the stitching on that alliga-
tor strap?
INTRICATE SKILL
James Gurney, editor of specialist watch
magazine QP, summed it up at last year’s
SalonQP showcase in Marylebone. “From
astrology to physics on the nano-scale,
from prototypes printed in 3D to enamels
applied with the finest brushes imagina-
ble, watchmaking brings together profes-
sions and technologies in a way that no
other endeavour quite matches.”
Such intricate skill and craft endows
watch movements with their own
thrilling beauty – when the alternative is
a bit of cheap quartz circuitry, no wonder
people want to view the inner workings of
their watches and marvel. Hence the
modern trend to clear crystal casebacks –
take the watch off your wrist, and look at
the value inside. But it’s what you can’t
see that’s just as important, says Gurney.
“Even if your watch has an exhibition
caseback, don’t assume you can see every-
thing that went into its making. Less obvi-
ous is the work that goes into the
development of a watch.”
Take, for instance, the niche British avi-
ation brand Bremont, an operation with
miniscule resources compared to the
industry’s big players. Like the vast major-
ity of mechanical-movement watch
brands, Bremont uses rock-solid move-
ments supplied by Swiss company ETA,
which it then modifies and improves.
Peter Roberts, Bremont’s technical
director (who also happens to teach watch
making for Rolex), says that developing
an in-house Bremont movement will take
around £4m of investment. And while we
can probably look forward to a 100-per-
cent-British, in-house Roberts movement
in the near future, it’s the tirelessly proto-
typed minutiae that you pay for with a
Bremont watch – even beyond their
famously robust case, which is
treated in the same
Cambridgeshire facility that
hardens Rolls-Royce’s turbine
blades.
“The bezel is a unique fea-
ture,” points out Roberts. “It
uses ball bearings that click on
a minute-by-minute index. I
wanted it to feel just like an old
Leica iris aperture – and it took
years to develop at tremendous
cost.”
MORE TRANSPARENT VALUES
Nevertheless, with the luxury market’s
post-recession demand for more transpar-
ent and honest values, it is increasingly
argued that much of the cost in certain
prestige watches goes towards marketing
and a simple projection of brand position,
rather than actual production costs.
Especially given certain companies like
CITYA.M. 6 MAY 2011
Wearing such a watch
marks you out as an
aesthete, someone who
cares about the good
things in life
proprietary “Co-Axial” – the greatest
advance in mechanical watchmaking for
hundreds of years, practically doing away
with the need for lubrication and saving
customers from a costly service every
three years to replace the old oils.
That’s actually giving more bang for
your buck than ever before, as Omega’s
President Stephen Urquhart attests: “It
took about five years to develop our in-
house Co-Axial calibre... [It] requires partic-
ularly skilled watchmakers, who are doing
things that have never been done before.”
INDEPENDENT
Which brings us back to British shores –
or rather those of the Isle of Man. For the
only other watchmaker allowed to use
Omega’s Co-Axial system is Roger W.
Smith, the sole apprentice of the Co-
Axial’s inventor, George Daniels. One of
the world’s handful of independent
watchmakers keeping the tradition of the
truly handmade watch alive, and the only
surviving outpost of 19th-century English
watchmaking, Smith’s workshop of four
is currently occupied producing 51
Daniels Co-Axial Anniversary watches to
celebrate the mechanism’s 35 years – a
task that will take over a decade.
At £142,000 a piece, it puts a £3,500
Omega in the shade. But then again,
there are few other watchmakers where
all 25 handcrafts are executed by a single
hand – a hand you can physically shake
when you visit the workshop to see your
watch in progress.
“I guess the price comes down to pure
and practical bean counting,” explains
Smith. “For some wristwatches sold with
lots of accompanying PR and such, price
becomes totally relative to fame of the
brand. For me though, working this way,
it is truly the wages, materials and related
costs with a normal profit margin calcu-
lated in… Believe me, no watchmaker
working like I do will ever be riding
around in a Rolls-Royce, despite the price
of each watch.”
Clearly, commissioning and wearing a
watch by Roger Smith makes you a patron
of English heritage and the arts. But as
with every high-end watch with a delicate
movement ticking away inside – whether
it cost you £500 or £500,000 – it also
marks you out as an aesthete; someone
who cares about the good things in life;
N o m o s and someone who wishes to remember
Glashütte, these good things every time you glance
w h i c h
somehow
turns out LEARN THE ART – EXCLUSIVE OFFER
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less than £900. LeCoultre is offering City A.M. readers a
One brand that very limited number of free watchmak-
certainly doesn’t stint ing classes at its New Bond Street bou-
on its marketing is tique. One of the only shops in London
Omega, still considered one with its own highly-trained, in-house
of the best-value Swiss names out there. master watchmaker, the boutique will
Keen observers will indeed have noticed host three-hour classes on Friday after-
prices edging northwards of late, but this noons between now and the end of May.
isn’t to cover the cost of a new Nicole
Kidman ad campaign or even the Olympic
To express an interest in attending,
countdown clock – it is in fact because email harriet.grundy@richemont.com,
Omega is quietly revolutionising the stan- and quote City A.M On Time.
dard “Swiss Lever” escapement with their
 T HERE ARE STORIES THAT DESERVE TO BE CAPTURED FOREVER.

Whether it’s a transatlantic crossing on a sailboat with friends, or the birth of

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 Wealth Management
30 CITYA.M. 6 MAY 2011

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31
ARGENTINA: ON THE
MALBEC TOUR
| Interiors SEE THE TRAVEL SECTION
ON MONDAY

How to bring the outside in this summer

Donata Huggins asks cinnamon or spice scent.

interior experts how 6 FOCUS ON FLOORING

Londoners can make Roll up the thick pile Persian rug and leave
the floor bare. The cool feeling under bare
feet on a summer’s day will be readily
the most of the enjoyed. Those averse to floor nudity
should consider a brightly coloured floral
sunshine this year rug. Carlisle recommends the romance or
fleur carpets from Deirdre Dyson.

L
ONDON’S parks and green spaces
were rammed full of people desper-
ate to soak up the sunshine last
weekend. Even the vaguest hint of
summer notoriously has Brits whipping
out the shorts and firing up the bar-
beque. Appreciation of our country’s
bursts of summer is practically a national
characteristic. How then can the keen,
but often flat-bound Londoner make sure
she makes the most of the season despite
her lack of substantial outdoor space? We
asked a group of expert designers for
their top summer tips to help bring the
outside in.

1 LIGHTEN UP
Strip down the heavy curtains that
kept out the winter’s chill and stuff the
velvet cushions under the stairs until
October. Now is the time to hang sheer,
delicate fabrics that will blow in the
breeze. “You want to blur the separation
between the inside and outside,” says
Andrew Dunning, of APD Interiors.
“Light curtains can achieve this, but if
you have more money to spend,
think about fold-back doors to
really open out the space.”
2 FILL UP WITH FOLIAGE
Get yourself down to
your local garden centre
and buy as many luscious,
chunky-leaved plants and bright-
ly coloured flowers as you can get
in your trolley. Think of each room as a
green house, you can’t help but feel sum-
mery if it feels like you are constantly in
the garden. If you’re lucky enough to
have a terrace or roof garden stretching
out from one of your rooms, concentrate
the plants around doorway. ments for a seaside
Again, the idea here is make the feel. Carlisle suggests
outside space look as if it is part putting up your
of the room. beach and holiday
snaps to help you
reminisce. Crisp
3 GIVE IT A BRIGHT PUNCH
While lime green, bright red and yel-
white bed sheets and
sofa covers can freshen up a room. Add
bright blue cushions to add to the nauti-
low can look tacky in the winter, some- cal vibe.
thing about the summer’s sun
brings them to life.
Matthew Carlisle, creative
director at Candy & Candy 5 EXCITE THE SENSES TOP TROPICAL HOUSE PLANTS
says Zara and H&M have a
great range of summer acces-
sories for splashes of colour this
If you need an excuse to
buy a few more scented can-
dles (who doesn’t?), this will
1. BIRD OF PARADISE: One of the most
beautiful tropical flowers in the world,
season. While Missoni and Ralph appeal to you. The experts say with an almost gaudy array of blue and
Lauren’s home collections can there’s a big difference orange plumage.
deliver the same effect with a little more between summer and winter
of a luxurious feel. scents – and they can have a 2. PALM: Would any tropical scene be
powerful impact on the atmos- complete without a palm tree?
phere of your home. A luxury
4 GO NATURAL
Introduce a wicker or rattan chair, a
grapefruit candle from Jo
Malone (www.jomalone.co.uk,
£260), for instance, smells signif-
3. BROMELIADS: The easiest of all tropical
plants to grow. More tolerant to pot life
than many others.
smattering of seashells or stone orna- icantly more summery than a
& 62
2 2
0 1
,1
*

Keston WWaterside,
aaterside,
aterside is a development of eight exclusive
three-bedroom
three-bedroom apartments and duplexes including two penthouses
with rroof gardens
oof gar breathtaking
dens in a breathtaking lakeside setting.
from
Just 20 minutes by rail fr om Central London… yet a world away away..

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Apartments range fr om approx.
approx. 2,100
2,100 –2,900
–2,900 sq ft
Computer generated image
for illustrative purposes only
Prices starting fr
from
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940,000
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In jjoint
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with
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Viewings strictly by appointment

www
www.kestonwaterside.com
.kestonwaterside.com Savills: 0
01689
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13 333
 32 Living | Country Property of the Month
Bucolic beauty in
a Cornish setting
A pretty estate comes with a manor house
and earning potential, writes Timothy Barber
T
HERE are many Cornwalls. There’s
the one of Celtic myths, Arthurian
legends, castles and runes; the one
of bohemian creativity, of Barbara
Hepworth and Tate St Ives; the Cornwall
of surfing and beach parties; and the
Cornwall of lonely landscapes, remote
fishing villages and, er, pasties.
Nowadays there’s Cornwall for the mod-
ern sophisticate too: designer hotels, fash-
ionable restaurants and gorgeous spas
have been opening there at a rate of knots.
All of which means that, as a rural place
to live, it’s as varied and amenable as you
want it to be, and as beautiful as any-
where in the British isles. You just have to
find the right property.
Hamatethy, a south facing manor house
on the North Cornish coast, is a pretty
spiffing sort of place – a rambling country
estate where the pleasures of its bucolic
setting come with considerable potential
for extra revenue, from farming to setting
up a small sporting estate. Or you can just
enjoy it to stroll around – with almost 550
acres, including 72 acres of woodland,
you’re unlikely to get bored of it.
The house was built at the start of the
CITYA.M. 6 MAY 2011
19th century, though the estate is much
older – the name is derived from the old
Cornish word for a summer dwelling, and
the original manor house was built here
in the 12th century. It’s mentioned in the
Domesday book, and was once owned by
Count Robert of Mortain, who fought at Hamatethy’s manor
the Battle of Hastings. house was built at the
The house itself is a thing of old-fash- start of the 19th
ioned beauty, with plenty of wood pan- century, and includes
elling, stone fireplaces and beamed farm buildings and
ceilings, and plenty of rooms: there are 550 acres of land.
nine bedrooms, as well as a library, pantry,
wine cellar and large reception hall.
Outside, things are just as interesting.
In the immediate vicinity, you’ve got a
number of outbuildings to make use of – a
double courtyard is adjoined by tradition-
al granite barns, while there’s also stables,
kennels, a carriage house, a Mill House
and grain store and further farm build-
ings. There are also a couple of agricultur-
ally tied cottages on the estate.
It’s a place with beauty, history, class and
an awful lot of potential – like Cornwall.
Offers invited in excess of £4m. Call Chesterton
Humberts on 01823 331 234 or visit
www.chestertonhumberts.com.
 GET THE CITY
PERSPECTIVE
With exceptional views and the city on
your doorstep, The Heron is London living
at its most inspired. Visit the marketing suite
to discover this collection of apartments
finished to exacting standards and
featuring a private club, a garden terrace,
gym and concierge services.

Prices start from £490,000

New apartments on higher floors
are now available
Marketing Suite open 7 days a week
The Heron Pavilion, Moor Lane, London EC2Y 9BN

www.theheron.co.uk
0844 544 9202
sales@theheron.co.uk

Joint Sales Agents

A development by The Heron Residences LLP

AT PAPERMILL PLACE
WALTHAMSTOW, E17

READY FOR
MOVE-IN

Get Connected...
...with Zone 3 living
Stylish 2 bed/2 bath apartments with secured basement parking
less than 20 minutes from Liverpool Street & West End†
• Rapid connections to the West End, The City & Stratford: Black Horse Road tube station on the Victoria line less than 10 mins walk
• Kitchen appliances & all floor coverings included • Exemplary Customer Service with 24/7 support for the first two years
• Studios and 1 bedroom apartments also available
Prices from £225,000*

Sales Centre & Show Homes open now - Call or see website for daily times

0800 883 8983 or (out-of-hours) 0800 032 0077 www.vellumapartments.co.uk

*Price correct at time of going to press. Photographs depict Vellum exterior and showhome interiors. †Times are approximate and are courtesy of www.tfl.gov.uk.
34 Living | Focus On CITYA.M. 5 MAY 2011

NEED TO KNOW | AREA INSIGHT

MILL HILL, NW7 BY DONATA HUGGINS
Commuting: With the M1 running through
the centre of the area, road users can
ST VINCENTS reach the City in just under 30 minutes,
LANE while Mill Hill Broadway Station can deliv-
Price: £449,950 er rail users to King’s Cross International
This three-bedroom in just under 20 minutes. There is also a
apartment is arranged smattering of underground stations in the
over three floors. It has area including Mill Hill East that can reach
a fitted kitchen with Bank on the northern line in 35 minutes on
room to dine, three dou- a good day.
ble bedrooms, a shower
room, off-street parking, Education: The area is rich with good
gating, grounds and use schools. The independent Mill Hill School
of the nearby communal scores 95 per cent A*-C grades at GSCE
gardens. while the all girls independent Mount
Contact: Foxtons on 020 School gets 85 per cent. The state schools
8432 1700 or go to in the area aren’t bad either: the selective
www.foxtons.co.uk St. Michael’s Catholic Grammar School
gets a whopping 100 per cent A*-C at
GCSE.

Leisure: While the social scene in and

around Mill Hill mainly revolves around the
dining room table, there is a local golf club
and a Virgin Active gym nearby. There are
also a number of clubs and societies for
local residents.
HIGHWOOD HILL
Price: £699,950 PRICE WATCH | MILL HILL V BARNET
This four bedroom, semi- AVERAGE HOUSE PRICE
detached family home
has two bathrooms, a MILL HILL: £484,367
dining room, lounge,
kitchen, TV room, back BARNET: £443,939
garden and garage and
enough outside space to 10 YEAR PRICE GROWTH
accommodate three or
WILLOW END, HENDON WOOD LANE four cars. MILL HILL: 130 PER CENT
Price: £2.85m Contact: For sale with
This brand new home is spread out over four levels. It has three reception Godfrey and Barr – visit
rooms, six bedrooms, six en suite bathrooms, a home cinema room and a BARNET: 123 PER CENT
www.fabricproperty.com
games room with a fitted bar and gym. for contact details
Contact:Savills on 020 8447 4400 or go to www.savills.co.uk Source: Marcus Dixon, Savills Research

Apartments from £160k in a fantastic

central location, launching May 14th
Bow Cross West Sales and Marketing Suite 10am - 4pm
31 Campbell Road, London E3 3AA
Register your interest now at www.bowcrosswest.co.uk

Chic one and two bedroom apartments embracing the old with the new to
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r 2 mins DLR
r 3 mins District line
r secure underground parking available for all properties*

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www.bowcrosswest.co.uk *premium payable for parking
CITYA.M. 5 MAY 2011 Living | Focus On 35

CURRENT MORTGAGE DEALS BY DONATA HUGGINS PROPERTY NEWS

BY DONATA HUGGINS
Lender Fixed/Flexible Rate Until apr Maximum Loan
(per cent) (per cent) to Value (per cent)
First Direct Flexible 1.99 2 years 3.5 65
Santander Flexible 2.19 2 years 4 60
Skipton BS Flexible 2.28 2 years 4.8 60
Yorkshire BS Flexible 2.29 June 2013 4.7 75
Santander Fixed 2.79 June 2013 4.2 60
Yorkshire BS Fixed 2.99 June 2013 4.8 75
YOO ARE GOING TO MUMBAI PRICES LOOKING UP IN COSTA DEL SOL
Woolwich (Barclays) Fixed 3.35 June 2013 3.6 70 Yoo, the design brand, has launched a new Ignacio Osle of Taylor Wimpey España says:
development in Mumbai. The project is “First quarter enquiries made by foreign
Nationwide BS Fixed 3.79 3 years 4.1 70 Jade Jagger’s first in India. It is set to com- buyers at our office in the Costa del Sol
prise 452 apartments of two, three and four have gone up by 43 per cent.” If Osle is to be
HSBC Fixed 3.89 July 2014 4.1 60 bedrooms as well as duplex sky villas believed, the south of Spain is a bargain.
Source: MoneySupermarket.com
spread across four towers. It is scheduled Prices are still 36 per cent cheaper than
for completion in 2013. they were in 2007.
INTERIORS
Tim Hassell
DIRECTOR OF CENTRAL
LONDON LETTINGS FIRM
DRAKER LETTINGS,
decision that only they can make. Either
way, the tenancy agreement should be tai-
lored to reflect that a pet will be occupying
the property so that everything is agreed in
writing.
Q&A
SPECIALISING IN BELGRAVIA,
CHELSEA, KENSINGTON AND

Q.
PIMLICO I want to let my property as I have moved in with
my fiance. I have a residential mortgage and
want to know whether there is anything I need to

Q.
I have received an offer on my property from a do. RENTS GO UP THANKS TO BORIS BIKES BEWARE OF HIGH SPEED RAIL

A.
tenant who has a dog. Should I allow tenants to
have pets?
Generally pets such as dogs or cats can cause a
for a previous landlord’s reference specifically for
A. Most residential mortgage lenders will have the
condition that you cannot let a property without
their written consent. Your first port of call should
lot of wear and tear on a property. We always ask be to contact them immediately. Lenders are normally helpful
when dealing with this matter as it is relatively common.
Landlords in East London are set to benefit
from the 5 per cent boost to rent that a
London cycle hire docking station brings,
says Ludlow Thompson, a lettings agent.
The cycle hire scheme will be extended fur-
Homeowners are unwittingly buying prop-
erties that may be blighted by high-speed
rail, says property search company
Searchflow. Local Authorities are only
obliged to inform buyers within a 200-
the pet. This is the best way to ascertain the previous behav- They will either change the mortgage contract to a buy to let ther into east in time for the Olympics, to metre radius of the route. Searchflow
iour of an animal. If this reference is not possible we high- or simply give a letter of consent with some conditions include places like North Shoreditch, believe this will wipe £97m off the 4,700
light the potential risk to our clients and explain that this is a attached. Bethnal Green, Bow and Mile End. surrounding homes.

This CGI is indicative only and may differ from actual, refer to sales staff for further information.
 Lifestyle
36 CITYA.M. 6 MAY 2011

| Fashion & Reviews

1 It’s all about the thick end of the

WEDGE
with this summer’s footwear 6

The seventies look is hot to trot, so get out there and

shine in some chunky heels, says Zoe Strimpel

O
NE of the great joys of summer is having an excuse to splurge on footwear. Nothing
improves bare legs like a majestic heel and an open toe. Whereas every year the gladia-
tor makes its appearance, this spring/summer’s “seventies story” is a happy one for
those who like heels without the agony of the stiletto. Wedges and clogs are what it’s 5
2 all about, providing welcome heft and chunkiness so you won’t fall over after one too many
mojitos at the beachside cocktail bar. Sarah Curran, founder of My-wardrobe.com, says:
“Wedges have been a top selling style with raffia, patent and wicker styles. DVF, Mulberry, Pedro
Garcia and D&G have all featured fabulous wedges in their collections. Look for block heels as
an investment, which will be a key style for Autumn/Winter with great styles
from Mulberry and Michael Kors.” Here we’ve picked out some our faves to pro-
vide you with inspiration.

1 Black Opal wooden wedge by DVF, £254, www.my-wardrobe.com/

2 Sculpted resin and leather sandals by Alexander McQueen, £2,095, www.neta-
porter.com
3 High-heeled checked sandals by Dolce and Gabbana, £250,
store.dolcegabbana.com
4 Charlize triple velcro tourist sandal by Pedro Garcia, £235,
www.netaporter.com
5 Naomi Espadrille Wedge Sandal by KORS Michael Kors, $175 (£107), 4
www.michaelkors.com
6 Nora in whiskey leather by Sam Edelman, £90, www.samedelman.com
3

Robert Pattinson as a

A circus of shmaltz circus performer in

Water for Elephants.
That does look
comfortable.

and a hip, racy thriller Below left: Saoirse

Ronan in Hanna.

Pick a Run Lola Run-style thriller over

Witherspoon’s cheese-fest, says Tom Latter
Film
WATER FOR ELEPHANTS
Cert: 12A
hhiii
It’s the height of the Great Depression when
Jacob (Robert Pattinson) loses everything:
his parents, his house, his dreams of gradu-
ating veterinary college. En route to a new
start in the big city, he hitches a ride on a
passing railroad car. But it’s not just any rail-
road car: it’s the travelling circus!
Aboard, he is taken under the wing of a
Hispanic dwarf and a lovably cragged souse
(played by the ghost of Compo from Last Of
the Summer Wine), and, before long, Jacob
is responsible for the well-being of the on-
board menagerie. But things get complicat-
ed when he falls for Marlena (Reese
Withersoon) – who also just happens to be
the wife of August, the circus’s cruel propri-
etor…
The trite plot creaks with familiarity and
matters aren’t helped by the extraordinary
vacuum of chemistry between the two
leads. Perhaps that’s the fault of the writ-
ing: Marlena is a painfully two dimensional
character and Jacob strides through pro-
ceedings agog at the wonder of everything
but weirdly not seeming to think too much
about his entirely ruined life.
In the abstract, some of the scenes are
actually rather hilarious. I couldn’t help but
wonder what on earth must have been
going through Witherspoon’s mind as
she was filmed (a) singing a lullaby to
(b) a crippled horse as (c) a teary-eyed R-
Patz shot it in the head? Were they
oblivious to how ridiculous it all was?
Film
HANNA
Cert: 12A
hhhii
Sixteen-year-old Hanna (Saoirse Ronan) and
her father Erik (Eric Bana) have been on the
run from the CIA for 15 years. They live off
the land in a remote snowbound location
in Northern Europe. For her whole life,
Erik’s been raising his daughter to do one
thing: kill the CIA agent in their pursuit.
After these backbreaking years of dubi-
ous parenting, Hanna’s now ready for the
task at hand. Father and daughter both
embark upon separate cross-continen-
tal journeys to neutralise their quarry,
taking in locations as diverse as ghoul-
ish subterranean prisons, abandoned fair-
grounds, and North African deserts.
Some things just don’t add up. One is
that the man charged with hunting down
the massive Bana is a tiny Teutonic deviant
played by television’s “Rev”, Tom
Hollander. Similarly, at the start of her
journey, Hanna seems entirely perplexed
when she encounters electricity. Fair
enough – she’s been brought up in a shack.
But just a short time after going mental at
the sight of an electric kettle, she’s sat in a
German internet café Googling with
aplomb. Such discrepancies hinder the
suspension of disbelief somewhat.
But these are, ultimately, minor quib-
bles. With hints of Leon and Natural Born
Killers, a thumping industrial soundtrack,
sharp cinematography and neck-snapping-
ly cool fight scenes, there are many many
worse ways to spend 111 minutes.

4)08
0''
:063
45:-&

Investec Ladies’ Day – Friday 3rd June 2011

Enter our Style on The Downs competition on the day to win a fantastic prize 0844 848 3256 | epsomdowns.co.uk
 CITYA.M. 6 MAY 2011 Lifestyle | TV& Games 37

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News 6.30pm BBC
London News 7pm The One Show:
BBC News 8pm EastEnders
8.30pm A Question of Sport
9pm Have I Got News for You
9.30pm Outnumbered
10pm BBC News
10.25pm Regional News
10.40pm The Graham Norton
Show 11.25pm The National
Lottery Friday Night Draws
11.35pm The One Show 12.35am
FILM Assault on Precinct 13 1976;
Weatherview 2.05am Sign Zone:
The Hairy Bikers: Mums Know Best
3.05am Countryfile 4.05am Great
British Railway Journeys
4.35am-6am BBC News
6pm Eggheads:
6.30pm Great British Menu:
7pm Railway Walks:
7.30pm Verdict on 7/7:
A Newsnight Special
8pm Petworth House –
The Big Spring Clean
8.30pm Gardeners’ World
9pm Monty Don’s Italian
Gardens
10pm Frank Skinner’s
Opinionated
10.30pm Newsnight: Weather
11.35pm CHOICE Later with Jools
Holland 12.35am FILM Lawn Dogs
1997 2.15am BBC News
4.35am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale: Jackson goes
through with the skydive.
7.30pm Coronation Street:
8pm CHOICE
Baboons with Bill Bailey
8.30pm Coronation Street:
9pm Paul O’Grady Live: With
James Corden and Ross Kemp.
10pm ITV News at Ten
10.30pm London News
10.35pm The Cube:
11.35pm Take Me Out:
12.30am The Zone; ITV News
2.30am In Plain Sight
3.15am-5.30am ITV Nightscreen
6pm The Simpsons: 6.30pm 6pm Home and Away
Hollyoaks: 7pm Channel 4 News 6.25pm OK! TV
7.55pm 4thought.tv: 8pm A Place
7pm 5 News at 7
in the Sun: Home or Away: 9pm
7.30pm CHOICE
The Million Pound Drop Live:
10.25pm Jimmy Carr: Telling Jokes: Fifth Gear: 5 News Update
8pm Ice Road Truckers: The
11.25pm The Ricky Gervais Show:
12am Music on 4: Fight for Your drivers are forced to team up
Right Revisited 12.30am Music on for safety reasons; 5 News at 9
4: Chase & Status: Live in London 9pm The Mentalist
12.55am My Name Is Earl 1.20am LATER WITH JOOLS HOLLAND
10pm Law & Order
My Name Is Earl 1.40am Freaky BBC2, 11.35PM
2.05am Undressing My Mother 10.55pm The Walking Dead Adele sings from her record-breaking
2.15am Farewell Packets of 10 11.55pm Cops in Crisis release 21 and R Kelly performs songs
2.20am Brain Damage 2.25am 12.15am SuperCasino from Love Letter. There is also music
Ugly Betty 3.10am Hill Street Blues 4.05am Motorsport Mundial by Young the Giant and Metronomy.
4am The Unofficial – Royal 4.30am Fifth Gear 4.55am County
Wedding 4.50am Wogan’s Perfect Secrets 5.10am Wildlife SOS
Recall 5.15am-6am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT Ghost Whisperer 2.40am Charmed Hairdresser 12.10am My Name Is DISCOVERY HOME &
SATELLITE & CABLE

4.30pm Live ECB 40 League
Cricket 10pm Take It Like a Fan
10.30pm Premier League Preview
11pm Football League 12am Take
It Like a Fan 12.30am Premier
League Preview 1am Rugby League
2.30am Football League Weekend
3.30am Take It Like a Fan 4am
Premier League Preview 4.30am
Football League Weekend
5.30am-6am Take It Like a Fan
SKY SPORTS 2
7pm Tight Lines 8pm Road to
London 8.30pm Rugby League
10pm Tight Lines 11pm NFL 12am
Super Rugby 2am Tight Lines 3am
NFL 4am Racemax 5am-6am
Aerobics Oz Style
SKY SPORTS 3
6pm Live Super Rugby 8pm Live
PGA Tour Golf 11pm European Tour
Golf 1am PGA Tour Golf 4am Kings
Of The Extreme 4.30am Road to
London 5am-6am Tight Lines
6pm Mark Cavendish: The Human
Missile 7.30pm Strongest Man
8.30pm Mark Cavendish: The
Human Missile 9.30pm Under-17s
European Championship Football
11.15pm World Superbikes
12.15am-12.55am Video Gaming
ESPN
7pm Premier League Preview
7.30pm Total Italian Football 8pm
Live Euroleague Basketball 10pm
Rally Championship 10.30pm
ESPN MMA Live 11.15pm Premier
League Preview 11.45pm ESPN
Kicks 12am Live NBA Basketball
2.30am Live NBA Basketball
5am This Week in Baseball
5.30am-6am Rally Championship
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Bones 9pm
Criminal Minds 10pm CSI: Miami
11pm Criminal Minds 12am CSI:
Crime Scene Investigation 1.50am
4.20am Nothing to Declare
5.10am-6am Maury
BBC THREE
7pm Doctor Who 7.45pm Doctor
Who Confidential 8pm Snog,
Marry, Avoid? 8.30pm Young, Rich
and Househunting 9pm Two Pints
of Lager and a Packet of Crisps
9.30pm Good News 10pm
EastEnders 10.30pm Young, Rich
and Househunting 11pm Family
Guy 11.45pm Good News 12.15am
Two Pints of Lager and a Packet of
Crisps 12.45am Bizarre ER 1.15am
Snog, Marry, Avoid? 1.45am Fast
Food Baby 2.45am Real Hustle
3.15am Doctor Who 4.05am
Doctor Who Confidential 4.15am
Young, Rich and Househunting
4.45am-5.15am Bizarre ER
E4
7pm Hollyoaks 7.30pm Friends
9pm Supersize vs Superskinny
10pm Embarrassing Teenage
Bodies 11.10pm Great British
Earl 1.05am Supersize vs
Superskinny 2am Embarrassing
Teenage Bodies 2.55am Ugly Betty
3.35am Heartland 4.20am The
Class 4.40am-6am Switched
HISTORY
7pm America 8pm Storage Wars
9pm American Pickers 10pm
Ancient Aliens 11pm The True
Story 1am How Britain Bridges the
World 2am How Britain Was Built
3am America 4am The Universe
5am-6am Ice Road Truckers
DISCOVERY
8pm Britain’s Toughest Cops 9pm
Whale Wars 10pm Wheeler
Dealers 11pm Through the
Wormhole with Morgan Freeman
12am Bear Grylls: Born Survivor
1am Deadliest Catch 2am Frontline
Battle Machines with Mike Brewer
3am Hitler’s Generals 3.50am
World War Two 4.40am How the
Universe Works 5.30am-6am
Destroyed in Seconds
HEALTH
7pm Bringing Home Baby 8pm 18
Kids and Counting 9pm 19 Kids
and Counting 10pm Quints By
Surprise 11pm I Didn’t Know I Was BABOONS WITH BILL BAILEY
Pregnant 12am 19 Kids and ITV1, 8.00PM
Counting 1am Quints By Surprise As fisherman on the coast south of
2am I Didn’t Know I Was Pregnant
Cape Town unload their boats the
3am 18 Kids and Counting 4am baboons of the Smitz troop plan a raid
Deliver Me 5am-6am Bringing on their catch.
Home Baby
SKY1
7.30pm Middle 8pm Simpsons
8.30pm Modern Family 9pm
Raising Hope 9.30pm A League of
Their Own 10.30pm Spartacus:
Blood and Sand 11.45pm Ross
Kemp Middle East 12.45am Ross
Kemp Middle East 1.30am Cold
Case 2.15am A Town Called Eureka FIFTH GEAR
3am Secret Life of Suburbia CHANNEL 5, 7.30PM
3.50am Oops TV 4.40am Zoo Vet Tiff Needell and Jason Plato test the
at Large 5.05am Bite Size Brainiac Nissan GT-R supercar. The team also
5.15am-6am Don’t Forget the tests Peugeot’s new 508 mid-sized
Lyrics US saloon.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
12 29 7 11 7 13 
4 5 13
12 31  
33 12
Place the numbers from 1 to 9 in each empty cell so that each 16 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 9 12
20 14
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 14
   
above or to the left of it. 17 35
17 35 
You can only use the digits 1-9
  and you must not use the
34 21
23 11   
same digit twice in a block.
     The same digit may occur 15
14
15
11
   more than once in a row or
column, but it must be in a 10 22
23
8
11
  
15 19
   separate block.
16 9 
24 18
  11 14 10
 

   ACROSS DOWN
1 Pieces of food on 1 Rest on bended legs (5)
  
     WORDWHEEL C R
a skewer (5)
4 Put to shame (5)
7 Egotistical (4)
2 Affirms solemnly
and formally (5)
3 Exclude (3)
Using only the letters in the Wordwheel, you have 8 Young of an eel (5) 4 Punk rocker Stuart
  ten minutes to find as many words as possible,
D A 9 Domesticates (5) Goddard, better known
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters M 11 Coins kept about
one’s person for small
as Adam ___ (3)
5 Country, capital

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
O M expenditures (5,6)
15 Indian state,
Yerevan (7)
6 Hermann ___, author
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
N E capital Panaji (3)
16 Revise the terms of (11)
of Steppenwolf (5)
10 Large ladle (5)
QUICK CROSSWORD 19 Not affected by 12 Motorcoach (7)
SUDOKU
2 9 8 8 9 6
alcohol (5) 13 Ovum (3)
8 6 7 9 3 2 5 1
B R O O M A G I L E
7 3 1 6 9 2 5 8 4
         21 Lubricated (5) 14 Item worn on
Y I A R A          22 Reverse an action (4) the head (3)
P L T O R O N T O 4 1 2 8 4 9 7
        
A S S E T W H 9 4 3 4 1 5 7 2 23 Mike ___, former 16 Take (an examination)
        
S K H U S T L E 1 6 6 9 heavyweight again (5)
WORDWHEEL
        
S W I P E O H A R E 8 3 5 9 6 7 9 3 champion boxer (5) 17 Imbecile (5)
A N S W E R C R         
R A C H O I R
1 2 4 1 1 6 2 24 Medium that was 18 Duck valued for its
        
P R E L U D E N A
9 4 1 5 3 8 2 7 6 The nine-letter word was once supposed to soft down (5)
        
E M R I T 7 5 9 8 2 3 4 1
THERAPIST         
fill all space (5) 20 Sprint (3)
G N A S H Y U C C A 1 3 2 9 7 8
21 Lyric poem (3)
 Punter
SPORT TRADER BEN CLEMINSON AND BILL ESDAILE TEAM UP TO BRING
YOU THIS WEEK’S BEST FOOTBALL AND RACING BETS

Rivals likely to share

spoils in title decider
MANCHESTER UNITED

CHELSEA

SUNDAY – 4.10PM SKY SPORTS 1

A FEW weeks ago it would have been hard
to imagine that this contest could have
been a title decider, but Chelsea’s rich vein
of form has propelled them back into the
race. They have won eight of their last
nine league games and beat Manchester
United at Stamford Bridge just a couple of
months ago. Since then they have lost
both Champions League quarter-final legs
against United, but their league form has
been excellent and a win on Sunday
would put them in the driving seat with
just two games to go.
But it’s not going to be easy for Carlo
Ancelotti’s men. They can take encourage-
ment from the fact they were the last
team to win in the league at Old Trafford
in April 2010, but United have won 16 and
drawn one of their 17 home league games
this season. Sir Alex Ferguson was disap-
pointed with his team’s display at the far this campaign and the same is true in six 2 scoreline is never an easy result to predict
Emirates last weekend, but he knows that of their last eight matches hosting Big Four correctly but William Hill offer an attractive
a point against Chelsea should be enough opponents since 2008/09. 16/1 and that is worth a small interest. I also
for yet another championship. In the last six league meetings between wouldn’t put anyone off having a small bet
United’s home record is so strong that these sides there has been a minimum of three on the United HT / draw FT double-result at
there is an argument they should be goals in four of them, while Chelsea have also 14/1 on Betdaq.
backed at 7/5 with Paddy Power. The Blues been involved in high scoring contests of late. For the reasons already given, spread bet-
are a best-priced 9/4 on Betdaq, but the They have netted in all of their last nine league tors should buy Sporting Index’s total goals
draw looks the most likely outcome to me matches, with six of those producing two or prediction at 2.6.
and that is appealing at 12/5 with Victor more goals; while seven of their 17 away trips
Chandler.
It could make for a very exciting game
this term have seen at least four.
Some might think that this could become
POINTERS...
and Bettorlogic.com analysis backs up tactical and defensive due to what’s at stake, Draw at 12/5 with Victor Chandler
that theory. There have been two or more but Chelsea have to go for it and I can see 2-2 correct scoreline at 16/1 with William Hill
goals in 10 of United’s 17 home games so both goalkeepers being kept very busy. The 2- Buy total match goals at 2.6 with Sporting Index

Stick with Tweed on the Roodee

WHEN ST Nicholas Abbey won the Racing nating his fields. He looks set to be allowed to out to find the winner of the 29 runner
Post Trophy at Doncaster in 2009, he was lead his four rivals from the front and will Victoria Cup at Ascot tomorrow. The progres-
hailed as racing’s new Messiah and was fully take some pegging back. sive Horseradish and Hawkeyethenoo are
expected to win last season’s 2,000 Elsewhere, on a really tough looking sure to be in the shake-up, but it may just pay
Guineas, Derby, Arc, Breeders’ Cup Chester card, I like the look of the Frankie to have a few quid each-way on AL MUHEER at
and anything else connections could Dettori-ridden AHTOUG in the Victor around 25/1. He seems to save his best for the
squeeze in along the way! Chandler Handicap over five furlongs at Berkshire venue and could spring a surprise
Sadly, his bubble burst in the 3.30pm. He showed bundles of speed on his from what is fast becoming an insulting
Guineas (his only run as a three- seasonal reappearance at Sandown before mark.
year-old) and he was even tiring late on and I expect him to come Following the very successful Cheltenham
more of a disappointment on a lot for that run. I’ll be at Chester Fairway to Furlong at Celtic Manor – a
when only third in a Listed this afternoon and will be posting all unique concept created by
contest on his reappear- my other fancies and news on Twitter Yourgolftravel.com combining champi-
ance last month. He runs @BillEsdaile. onship golf with some of the UK’s top
in the Ormonde Stakes at There will be plenty of Investec horseracing fixtures – the next event takes
Chester this afternoon Oaks and Derby clues at Lingfield place on Monday 13th June at The Berkshire
and I’d far rather lay him tomorrow, although the Oaks Trial at Golf Club on the eve of Royal Ascot.
on Betdaq than back him. 2.40pm seems to be a virtually impossible Following the golf, guests will be treated to
There was nothing puzzle to solve. If you held a gun to my a Royal Ascot preview and charity ball in the
encouraging about his head, I’d probably side with Always The evening in aid of Cancer Research and will
Curragh blowout and Lady, but I wouldn’t be confident. The then attend the first day of Royal Ascot on
the ground will be plen- Derby Trial, half an hour later, looks the Tuesday. For more information,
ty quick enough for him an equally muddling affair and visit www.fairwaytofurlong.com or call 0800
here. both Measuring Time and 043 1860.
In HARRIS TWEED he Hurricane Higgins are likely
meets a highly pro-
gressive four-year-old,
sorts. However, at the prices,
I’m prepared to take a chance on POINTERS...
who not only goes on any Ed Dunlop’s LAUGHING JACK to HARRIS TWEED 2.55pm Chester (today)
ground, but also is dramatically step up from his AHTOUG 3.30pm Chester (today)
extremely straightfor- Windsor maiden win. LAUGHING JACK e/w 3.10pm Lingfield (tomorrow)
ward and enjoys domi- You need to get the hat pin AL MUHEER e/w 3.25pm Ascot (tomorrow)
 Sport
Giggs bullish as United look to Chelsea decider
▲
FOOTBALL
BY FRANK DALLERES
MANCHESTER UNITED stalwart Ryan
Giggs insists the Premier League
leaders have not even contemplated
the prospect of being knocked off
their perch when title rivals Chelsea
visit Old Trafford on Sunday.
The Blues are on the brink of com-
pleting a comeback in the title race
many pundits thought impossible,
having rediscovered their form and
slashed a 15-point deficit to just
three in the space of two months.
Carlo Ancelotti’s champions will
reclaim top spot for the first time
since 27 November 2010 if they can
extend their run of five successive
ENGLAND’S THREE LIONS GAMBLE
▲
CRICKET
BY JAMES GOLDMAN
ENGLAND team director Andy Flower
admits he is taking a leap into the
unknown after it was revealed yester-
day he will work alongside three dif-
ferent captains in a dramatic
restructuring operation.
Andrew Strauss will remain as Test
skipper but his decision to retire from
one-day internationals presents
Alastair Cook with the opportunity
not only to regain his place in the ODI
set-up, but to inherit the captaincy
reins as well.
In the most abbreviated version
of the game, Paul Collingwood,
who led England’s successful
World Twenty20 campaign last
year, has been stood down with
fast bowling all-rounder Stuart
Broad bringing some youthful
impetus in the role.
Operating with a trio of cap-
tains represents an unprecedented
move for any international side, but
Flower believes it will give England the head of that unit and will have an
the best possible chance of becoming influence over the direction of the
a force across the board.
“It has never been tried before so I Broad and Cook will also be expected
am excited by the opportunity it pro- to contribute and input into the run-
vides us with,” said Flower. “We don’t ning of the Test teams.
know 100 per cent whether it will
work and be the most efficient sys- pronged leadership could undermine
tem but we’re going to give it a try.
“I think with the quality of people he has total confidence in the person-
that we’ve got around us we form a alities of Cook and Broad to make the
Lewis wary QPR forced to wait as FA
of Red Bulls delay Faurlin case verdict
▲
FORMULA ONE
MCLAREN’S Lewis Hamilton has
played down his chances of a second
successive win ahead of this week-
end’s Turkish Grand Prix.
“I don’t like to expect too much
because if it doesn’t work out it’s not
a big come down,” said the 2008
world champion.
“Even though we won the last race,
we are still slightly behind the Red
Bulls in terms of pure pace.”
league wins this weekend against
United.
But Giggs, who this week helped
his side reach the Champions League
final, is bullish about his side’s
chances of arresting a wobble that
has included a draw at Newcastle
and defeat last weekend at Arsenal.
“We have not thought about los-
ing a big lead,” said the Welshman
(right), who is chasing a 12th league
winners’ medal. “We have had some
tough games where we have dropped
points: Newcastle away, Arsenal
away. In the Newcastle game we
played well. There is probably only
Arsenal in the last couple of months
where we have not turned up.
Generally our form is good. We are
NAME
Alastair Cook
ODI CAPS
26
ODI AVERAGE
33.00 good leadership
team.”
Strauss will remain at
one-day and Twenty20 sides, while
Strauss conceded that a three-
his position as Test skipper, although
▲
FOOTBALL
BY FRANK DALLERES
QUEENS PARK RANGERS’ promotion
bid descended into farce last night
when the Football Association
delayed a verdict from the Alejandro
Faurlin hearing.
QPR had expected to hear by this
afternoon whether they had been
found guilty and might therefore
have points deducted, jeopardising
their place at the top of the
confident we can beat any team at
Old Trafford.”
United’s success this season has
been founded on rock solid home
form – they have dropped just two
points – as demonstrated on
Wednesday when they ruthlessly dis-
mantled Schalke 4-1 in the
Champions League.
“If we play to the level of
that performance, we will
be very difficult to beat.
That is the benchmark. We
have to try and keep to it,” he
added. “Of course reaching
the Champions League
final will give us a
boost. Hopefully
that will help us.
NAME
Andrew Strauss
TEST CAPS
82t
TEST AVERAGE
system work. 41.14
“I can’t be sure
about this and we
don’t know how things are going to
pan out in the future, but I think this
gives us a great chance of progress-
ing,” said Strauss. “I’m delighted that
Alastair and Stuart have been
appointed. they are both proven
world-class cricketers and have out-
standing leadership qualities.
“I look forward to working closely
with them as we strive to progress
England’s development across all
Championship. But the FA’s commis-
sion has delayed its decision, mean-
ing it looks unlikely to be delivered
before the club’s final game of the
season, against Leeds tomorrow after-
noon at Loftus Road.
League officials had planned to pres-
ent QPR with the trophy after the
match, but that has now been plunged
into doubt. QPR are tipped to lose
points if found guilty of breaking FA
rules involving third party ownership
when they signed Faurlin in 2009.
39
It will be tough because Chelsea are OMENS | CAN CHELSEA PINCH THE TITLE?
flying at the moment but, at home,
we are confident of getting that Manchester United lead Chelsea by three
win.”
Interest in Chelsea’s preparations points with just three fixtures remaining,
centre on whether manager Carlo the first of which is Sunday’s clash
Ancelotti will start with misfiring between the two teams. So can the west
striker Fernando Torres. The Spain Londoners do it? The 1967-1968 suggests
star, who has scored just once
since January, began last week’s 2- they are in with a decent chance. With
1 win over Tottenham but was three games left to play United led bitter
withdrawn after just 63 minutes. rivals Manchester City by four points,
Meanwhile, reports in Spain although City had a game in hand. Yet it
suggest Chelsea have approached
former Real Madrid sporting was the blue half of Manchester who
director Predrag Mijatovic ended up smiling when City snatched the
about replacing Frank title by two points.
Arnesen in a similar
role next season.
Nathan Scarff
Cook under
the spotlight
CRICKET COMMENT
ANDY LLOYD
I
T’S not the idea of three cap-
tains that worries me about
NAME England’s brave new direc-
STUART BROAD tion, more that I don’t think
Alastair Cook and Stuart Broad
T20 CAPS are the right men for the jobs
44 Broad has had some serious
injury problems over the last six
T20 WICKETS months and England should have
forms of the 55 ensured his reintegration was as
game.” smooth as possible. The demands
Cook’s promotion to of captaincy are not what he needs
captaincy had been touted, but is still right now.
something of a surprise considering Cook’s promotion, however, is
he has made only three appearances even more baffling and verges on
for the one-day team since February short-sighted. If he wasn’t good
2008. enough for the World Cup squad
“I’ve worked hard on my limited two months ago, why now? Two
overs cricket recently. I’ve never seen or three bad scores on the trot and
myself as a Test batsman exclusively his place in the side, never mind
and I know I have a lot to offer strate- his role as captain, will be called
gically and as a top-order batsman in into question.
one-day cricket.”
SPORT | IN BRIEF
Ohuruogu set for London race Murray beaten by Bellucci
ATHLETICS: Olympic 400 metres cham- TENNIS: British NO1 Andy Murray made
pion Christine Ohuruogu will take on her a sorry exit at the Madrid Open, beaten
successor as world champion Sanya 6-4, 6-2 in round three by Brazilian
Richards-Ross at the Diamond League Thomaz Bellucci. In the last eight Bellucci
meetings in and London this summer. will play seventh seed Tomas Berdych.
Results
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email sport@cityam.com