Greed IS Back: Business With Personality

Download as pdf or txt
Download as pdf or txt
You are on page 1of 36

BUSINESS WITH PERSONALITY

ADVERTISEMENT

GREED
IS
BACK
Lured by Money.

Driven by Revenge.

Obsessed with Power.

Defined by Integrity.
BUSINESS WITH PERSONALITY

JEROME KERVIEL GETS OPENING UP


PANDORA
FIVE YEAR SENTENCE FIRM CHAIRED BY
ALLAN LEIGHTON
ROGUE TRADER JAILED P9 DEBUTS P19
Issue 1,235 Wednesday 6 October 2010 www.cityam.com FREE

PM TRIES TO WOO FAMILIES


AFTER BENEFITS BACKLASH
BUT DEFIES BIG BUSINESS BY DOWNPLAYING ITS CONTRIBUTION TO UK ECONOMY
CONSERVATIVE Extending it to higher-rate taxpayers
as well could wipe out most of the
CONFERENCE £1bn the government will save by
BY DAVID CROW IN BIRMINGHAM scaling back child benefit.
The massive backlash over child
DAVID Cameron will today pledge to benefit cuts has taken the
press ahead with a married couple’s Conservatives by surprise. Last night,
tax allowance, in a move designed to Cameron used a television interview
compensate some families who are to apologise for not including the
about to lose their child benefit. plans in his election manifesto, while
The Prime Minister will tell dele- chancellor George Osborne wrote to
gates at the Tory conference that the MPs to explain the policy.
coalition will “recognise marriage in Meanwhile, the Prime Minister will
the tax system”, after a massive back- today champion the self-employed
lash over child benefit cuts that will over “big business”, as he seeks to
penalise stay-at-home mothers and regain the political initiative and
single parents. reengage with voters.
Before the general election, the He will say: “When you think of a
Tories pledged to introduce an wealth creator, don’t think of the
allowance for married couples and tycoon in the glass tower. Think of the
those in civil partnerships, but said it man who gets up and leaves the
would only be given when both part- house before dawn to go out and
ners paid the basic rate of tax. clean the windows.”
But last night aides to the Prime “The whole point is it’s not glam-
Minister said he could expand the orous millionaires who are going to
policy to cover families with one high- get us out of this mess,” said one Tory
er-rate taxpayer. strategist.
“We certainly haven’t slammed The Prime Minister is also expected
the door on that possibility,” said one. to try and redefine the debate over
And a source close to the chancel- David and Samantha Cameron with baby Florence ahead of today’s key speech Picture: REUTERS “fairness”, after the IFS and Labour
lor told City A.M. the allowance, to be accused the government of delivering
be introduced before the end of the a higher-rate tax payer, in a move that mother will lose £1,700 a year in child the personal allowance transferable a “regressive” budget that will hit the
parliament in 2015, would apply to is expected to save the exchequer benefit. But a two-earner family between adults who were married. poorest hardest.
some higher-rate taxpayers who have around £1bn a year. where both parents earn £42,000 a The Institute of Fiscal Studies said “For too long, we have measured
lost out from the cuts to child benefit. The change will punish families year – giving them a combined house- the plan would cost the exchequer success in tackling poverty by the size
The Prime Minister is expanding that have one adult paying the higher hold income of £84,000 – will contin- £550m in foregone revenue. of the cheque we give people. We say:
the policy to defuse the row over the rate of tax. From 2013, a two-child ue to receive their child benefit. But that plan only applied to cou- let’s measure our success by the
government’s decision to scrap child family with a father that earns During the election, the Tories ples where the higher-income mem- chance we give,” Cameron will say.
benefit for 1.2m families that contain £44,000-a-year and a stay-at-home unveiled plans to make up to £750 of ber was a basic-rate tax payer. ALLISTER HEATH: P2, NEWS: P6-P7

FTSE 100 ▲ 5,635.76 +79.79 DOW ▲ 10,944.72 +193.45 NASDAQ ▲ 2,399.83 +55.31 £/$ 1.58 unc £/¤ 1.16 unc ¤/$ ▲1.38 +0.01 Certified Distribution
02/08/10 – 29/08/10 is 93,782
2 News CITYA.M. 6 OCTOBER 2010

All businesses are wealth creators NEWS | IN BRIEF


BT’s Tech Mahindra stake eyed
Private equity firms including Apax
Partners and Providence Equity have
operate in a free market. This idea financial centres. London’s gradual It was nothing to boast about – but shown interest in buying BT Group's
that one can be pro one kind of decline now looks inevitable: word at any reading above 50 suggests expan- stake in Tech Mahindra that is likely to
wealth creator but anti the other is the conference in Birmingham yester- sion. The rebound in the US ISM non- be valued at $830m (£522m). BT has
intellectually weak. day was that the coalition wants to manufacturing index to 53.2 in restarted discussions to sell its holding
Anybody hoping that the coalition “slap the bankers” and “not to allow September, from 51.5, was even more in Tech Mahindra following the restate-
would back down from its relentless them to get away with it”. reassuring, even though the index is ment of financial numbers by the Indian
anti-big business and anti-City mes- So there you are: if you happen to still at a level consistent with sluggish IT services firm's unit Mahindra Satyam.
sage will therefore be disappointed. A work in a glass tower or in finance, GDP growth. The British firm, which holds about a
EDITOR’S LETTER new financial activities tax (Fat) looks you know what the coalition thinks The other key improvement comes third in Tech Mahindra, is expecting a 30
likely to be imposed on banks soon, of you (though if you are married, you from China, where the manufactur- per cent premium over the current mar-
ALLISTER HEATH on top of the existing tax on balance may get an as yet undefined tax break ing PMI – that country’s most impor- ket price for the stake sale, valuing the
sheets. This would include an addi- in 2015, to compensate for the tant indicator, for obvious reasons – deal at more than 37bn rupees (£522).
WHEN you think of a wealth-creator, tional levy on profits and on remu- botched reform to child benefits). It is rose to 53.8 from 51.7. The sharp slow-
don’t think of a tycoon in a glass neration (even though bonuses are extremely important to promote down in the Chinese economy Boston Red Sox bid for Liverpool
tower – or so David Cameron will tell already mostly taxed at 51.5 per cent, entrepreneurship and to encourage a appears to be ending, suggesting Liverpool has received two new
the Tory party conference today. and their continued payment is now flurry of new small businesses – but world trade is improving again. takeover bids – one from Asia and the
Think instead of a window cleaner, essential to the exchequer). denigrating those that have already So what does all of this mean? I other from the owners of the Boston
or a female entrepreneur who spends Previously, the government has made it is not the way to go. have, of course, only focused on the Red Sox, New England Sports
every night balancing her books, he said it would only introduce a Fat if it better news; there is plenty of bad Ventures – but the football club's
will add. The Prime Minister is right could secure international agree- STRONG SERVICES SHOW EXPANSION stuff too, with the Eurozone continu- American owners Tom Hicks and George
to celebrate those who have the ment, due to fears that banks could In both Britain and America, the serv- ing to slow and renewed sovereign Gillett Jr. are trying to block the other
courage and vision to set up on their relocate some of their operations ices sector is enjoying renewed signs default fears from Ireland to Spain. board members from pursuing negotia-
own. But while small businesses are overseas. This is no longer the case – of life. Growth remains meagre but Manufacturing is still slowing. But in tions. Both bidders are understood to be
fantastic, as are entrepreneurs, big signing up France and Germany will positive; we are still expanding, the case of Britain, America and the offering about £300m – enough to
firms are equally vital sources of inno- be held up as enough, which is non- despite the gloom. In the UK, the serv- emerging world, there are still no cover around £280m in loan and fees
vation, jobs, investment and tax sense. Slowly but surely, activity, jobs ices sector’s purchasing managers signs of a double-dip recession. owed to Royal Bank of Scotland. Both
receipts, as long of course as they and tax receipts will migrate to other index enjoyed a rise to 52.8 from 51.3. [email protected] MORE: P11 initial offers were rejected.

7th Floor, Centurion House,


24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: [email protected] www.cityam.com
UK taxes near top in Europe
Editorial TAX

income tax as a way of dealing with feet. And where employers are con- what the effect of the tax increases
Editor Allister Heath BY MATTHEW WEST their budget deficits. cerned, tax is a crucial business issue around the world would be but
Deputy Editor David Hellier KPMG said income tax rates global- when it comes to deciding where to added “the fact that high income
News Editor Ben Griffiths THE UK has become the fourth most ly had risen for the first time in seven locate workforces,” he said. earners are frequently more mobile
Night Editor Katie Hope highly taxed country in the whole of years reversing a general decline. Vaughan said it was still unclear should not be overlooked.”
Associate Editor David Crow Europe, a report revealed yesterday The majority of rate movement in
Business Features Editor Marc Sidwell while also warning there could be an 2010 came from Europe. Those pay- EU HIGHEST RATES OF PERSONAL INCOME TAX 2010
Lifestyle Editor Zoe Strimpel exodus of high earners from the City. ing the highest income taxes in the
Art Director Darren Soulsby KPMG’s annual individual income world were still those living in the COUNTRY RATE CHANGE 2010 2009
Pictures Alex Ridley tax and social security rate survey European Union where average rates 2009 2010 RANKING RANKING
showed the introduction of the 50 went up by 0.3 per cent over the past
Commercial per cent rate of tax was the highest year, although this was in line with Sweden 56.7% 56.6% -0.1% 1 2
Sales Director Jeremy Slattery personal income tax increase in the the global increase in tax rates.
Commercial Director Harry Owen world last year. Jayne Vaughan, tax partner in Denmark 62.3% 55.4% -6.9% 2 1
Head of Distribution Nick Owen It also propelled the UK from 13th international executive services at
on the league table last year to fourth KPMG in the UK, said the higher rate Netherlands 52.0% 52.0% 0.0% 3 3
Distribution helpline in terms of the amount of income tax tax bracket could have a negative
If you have any comments about the distribution
high earners are expected to pay. affect on Britain’s economic competi- Austria 50.0% 50.0% 0.0% 4= 4=
of City A.M. Please ring 0207 015 1230, or email
[email protected] Only Sweden, Denmark and the tiveness. Belgium 50.0% 50.0% 0.0% 4= 4=
Netherlands have higher personal “Individuals are highly mobile and
Editorial Statement income tax rates. they may decide to vote with their United Kingdom 40.0% 50.0% 10.0% 4= 13=
This newspaper adheres to the system of Income tax levels in the UK are
self-regulation overseen by the Press Complaints now higher than those of key Chancellor George Finland 49.8% 49.6% -0.2% 7 6
Commission. The PCC takes complaints about the European competitors, France and
editorial content of publications under the Editor’s Osborne could see an Ireland 46.0% 47.0% 1.0% 8 7
Code of Practice, a copy of which can be found at Germany, KPMG found.
www.pcc.org.uk But the survey suggests other gov- exodus of City workers
ernments in Europe and the rest of if personal tax rates Portugal 42.0% 45.9% 3.9% 9 11
Printed by Newsfax International,
Beam Reach 5 Business Park, the world may be following the UK’s remain high Germany 45.0% 45.0% 0.0% 10= 8
Marsh Way, Rainham, Essex, RM13 8RS example by increasing the top rate of

WHAT THE OTHER PAPERS SAY THIS MORNING


tions, will in the fourth quarter of
this year begin assembling the MG6
at its Longbridge plant.
HEDGE FUND MANAGER ENTERS BEAR GERMAN LAWYER POISED TO SMASH WARREN BUFFETT SAYS IN FUTURE ANOTHER NOKIA EXECUTIVE DEPARTS
MARKET PRIVATE MONEY NOT ENOUGH, SAYS GLASS CEILING WALL STREET CHIEFS SHOULD GO Nokia said one of the key executives
A disgraced hedge fund manager is to ARTS REPORT Clifford Chance could be set to shat- BROKE – AND THEIR WIVES involved in the development of its
sell one of the world’s most valuable Philanthropy cannot make up for ter one of the City’s longest-standing Warren Buffett, the billionaire new MeeGo operating system is leav-
collections of teddy bears at a London public spending cuts of up to 30 per barriers by becoming the first “magic investor, has hit out at pay practices ing the company, only months before
auction later this month. Paul cent facing arts bodies, according to a circle” law firm to appoint a woman on Wall Street, attacking the lack of the Finnish company is expected to
Greenwood, who pleaded guilty to new report, in a riposte to ministers as its senior partner. The 560 partners reform despite two years passing since launch handsets based on the soft-
fraud charges last year, will sell his who have suggested donors could in Britain’s biggest law firm began the financial crisis struck. “People ware. Ari Jaaksi has decided to step
£1.2m collection of Steiff teddy bears help plug the forthcoming funding voting yesterday to replace Stuart have a propensity to gamble, and it down for personal reasons and will
at Christies International on October gap. There may be scope for arts insti- Popham, who is standing down in gets made easier and easier for them,” leave the company in a couple of
13, according to people familiar with tutions to raise up to £100m over the December after eight years at the Mr Buffett said. weeks, a Nokia spokeswoman said.
the situation. next six years by improving their tar- helm. His exit continues the recent exodus
geting of philanthropists, says the ABSOLUTE RADIO LOSSES REACH of senior executives at the Finnish
MG PLANS FIRST ALL-NEW CAR IN 15 study by Arts & Business. LONDON’S GROWING LOVE OF MINERS £4.3M company.
YEARS BECKONS A BRAVE NEW WORLD Absolute Radio, the former Virgin
MG, the Birmingham-based British FINANCIAL CRISIS GIVES NOBEL They may already account for more Radio, has announced pre-tax losses of NOVARTIS CITES DISCONTINUED
carmaker owned by China’s Shanghai FOUNDATION NO PEACE than 13 per cent of the Footsie by £4.3m in 2009, as the radio group DRUGS FOR CHARGE
Automotive (SAIC), will by the end of This year’s Nobel laureates will value, but another big overseas miner owned by the Times of India saw the Novartis warned third-quarter results
the year begin producing its first all- receive the lowest prize money in real has set its sights on London. The ink impact of the recession and a change will be hit by a $590 million charge
new car in 15 years, and from 2011 terms for a decade after the annual had barely dried on the biggest unso- of name. In the group’s first full year linked to the discontinuation of the
relaunch in the UK as a “value” pay-out was frozen for the eighth suc- licited takeover in Polish history of accounts the group revealed that development of two experimental
brand. The company, which mainly cessive year amid financial pressure before New World Resources revealed revenues in 2009 sunk to £14.8m from drugs, a move that comes amid the
provides design and engineering serv- on the foundation that manages its ambitions to re-incorporate in £22m. Pre-tax losses for 2008 were company's ongoing portfolio restruc-
ices for SAIC’s growing Chinese opera- Alfred Nobel’s endowment. Britain. £2.66m. turing launched earlier this year.
CITYA.M. 6 OCTOBER 2010 News 3

Rio’s deal with


Goldman sees BHP on iron ore
its first half hits a hurdle

profits slide
E&Y global chair- MINING


man and chief
executive Jim MINING group Rio Tinto has made no
Turley will invest decision on its planned $116bn
over $1bn in the (£72.9bn) Australian joint venture
next four years to with BHP Billiton, it said yesterday
boost business. after claims that the deal could be ter-
minated.

Ernst & Young is falling


“The Rio Tinto board has not made

BANKING ly removed a £1m cap on the wages of any final decisions about possible out-
BY STEVE DINNEEN its partners and is now desperate to comes or next steps relating to the
hold onto its talented staff. proposed Rio Tinto/BHP Billiton iron

behind its big four rivals


GOLDMAN Sachs yesterday revealed The bank said tough trading condi- ore production joint venture in west-
profits at its London operations fell to tions, including sovereign debt crises, ern Australia,” Rio said in a statement.
less than £1bn for the first half of the put pressure on its operations. Earlier claims said Rio was prepar-
year. It said: “Several Eurozone coun- ing to walk away from the deal.
The bank posted a $1.47bn (£925m) tries remained under stress, reflect- It is understood that Rio chairman
profit, compared to $2.72bn last year, ing fiscal challenges and banking Jan du Plessis informed fellow direc-
PROFESSIONAL SERVICES

with revenues tumbling from $4.42bn sector concerns. In addition, concerns E&Y’s figures were bolstered by its tors on Monday he did not think BHP
in the first half to just $7.34bn. about sovereign debt risk... intensi- BY EMMA SADOWSKI Asia-Pacific practice, which delivered would object to Rio ending the deal.
The bank revealed it paid the fied during the period, contributing a nine per cent rise in revenue. Rio said the BHP deal had been dis-
Treasury $600m in the one-off bonus to higher market volatility and fund- ERNST & Young (E&Y) has reported However, its remaining regions, cussed during a board meeting on 4
tax, but this was offset by a fall of ing pressures.” flat revenue growth across its global including the UK, continued to suffer. October. “The board acknowledged
roughly the same amount in the level offices, falling behind big four rivals Pricing pressure in the UK led to a recent communications from regula-
of corporation tax it paid. ANALYSIS l Goldman Sachs Deloitte Touche Tohmatsu and PwC. two per cent decline in turnover last tors that indicate potential obstacles
The bank does not break out com- 160 $ 149.57 The accounting giant posted year. to achieving clearance for the joint
pensation figures for its interim 5 Oct $21.3bn (£13.3bn) in global revenue, Jim Turley, global chief executive venture,” it said in its statement.
trading period but its “administra- marking a slight decrease from 2009 said E&Y was “encouraged by the Some shareholders of Rio – the
tive expenses”, which are largely 150 when global income came to $21.4bn. return to growth”. world’s second largest iron ore
made up of bankers’ pay, fell sharply The firm’s results place it behind E&Y plans to invest $1.2bn in devel- miner – have complained that BHP
to $2.9bn. Deloitte and PwC, which both posted oping its business over the next four should pay more than the agreed
However, last week it emerged the 140
increases in global turnover. years and will hire 3,000 people in the $5.8bn to Rio as part of the JV, which
bank handed mid-year bonuses worth Deloitte saw global revenue of UK and 5,000 in China and India this envisages a 50-50 partnership.
tens of millions to around 100 of its $26.6bn, while PwC’s revenue also year. The payment accounts for the fact
London-based partners in the form of came to $26.6bn, marking a rise on Deloitte said yesterday it also plans that Rio is bigger in iron ore than
stock compensation. The bank recent- 5 Jul 21 Jul 10 Aug 30 Aug 20 Sep 2009. to invest $1bn to fund growth. BHP.
Get a guaranteed
great return
2 Year Fixed Rate Savings Bond

3.00%
AER/Gross p.a.
Visit us in branch,
at barclays.co.uk/
(Deposits of £500 to £49,999)
bonds or call
3.55%
AER/Gross p.a.
0845 300 0010
(Deposits of £50,000 to £1 million)

Rate featured is for


interest paid at the end
of the 2 year term
No withdrawals allowed
Monthly and annual
interest rates are also
available

Limited offer which may be withdrawn at any time. Rates are fixed for the 2 year term. Minimum deposit of £500 required. Maximum deposit of £1 million. Additional deposits are not allowed during the term of the bond. Conditions apply. Rates correct at time of going
to press 01/10/2010. Gross rate - Interest is payable without the deduction of income tax to non-taxpayers subject to the required certification and for investments of £50,000 or more which meet the Qualifying Time Deposit criteria (see clause 5 of the Bond Terms and
Conditions for full details). Otherwise income tax will be deducted at the basic rate. The interest paid forms part of the investor’s taxable income and should be reported on any self-assessment return. AER (Annual Equivalent Rate) illustrates what the interest rate would
be if interest was paid and compounded once each year. For BT residential customers, calls to 0845 numbers will cost no more than 4p per minute, plus 9.9p call set-up fee (current at June 2010). The price on non-BT phone lines may be
different. Calls may be monitored or recorded for security and training purposes. Barclays Bank PLC is authorised and regulated by the Financial Services Authority. Registered in England. Registered No 1026167. Registered Office: 1 Churchill Place, London, E14 5HP.
CITYA.M. 6 OCTOBER 2010 News 5

12.5 % Leahy’s legacy means the shares are worth buying for now
rise in first-half
pre-tax profit
£1.6bn
first-half profit S
IR Terry Leahy effectively signs
off with yet another set of
results which shows Tesco is
negotiating choppy economic
of £1.2bn – was “remarkable” given
the headwind from petrol mix, club-
card initiatives and property charges.
Full-year net debt guidance of
ANALYSIS l Tesco
440 p
430.20
5 Oct

waters in a calm and assured way. £7bn was better than consensus 420
While UK sales growth of three per expectations of £7.8bn, while earn-
cent is far from stellar, growing ings per share jumped by 14 per cent.

8% Asian markets have helped to keep


the ship moving forward.
Analysts point to the surprise fore-
Leahy, who is planning to dedicate
time to private investments, charity
and watching his beloved Everton,
400

Sales jump to cast that the company’s US Fresh & when he leaves in March, can be
Easy chain will be profitable by more than satisfied with his legacy.

3rd £32.9bn 2012/13.


Meanwhile James Grzinic, retail
Under him the company has diver-
sified and become more internation-
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep

analyst at Jeffries International, said al. Whether the momentum can be


Tesco is the third
biggest retailer in
UK profits before financial charges of
£1.22bn – compared with his forecast
maintained remains to be seen, but
for now Tesco is a “Buy”.
BOTTOMLINE
Analysis by John Dunne
the world

4,800
the number of
Tesco stores
around the
world
Outgoing chief executive Sir Terry Leahy reported a 12.5 per cent jump in first-half profit

Tesco talks
up economy
as profit lifts

RETAIL pretty robust recovery. If you look at


BY JOHN DUNNE the customer psychology and the
pulling power of the developing mar-
TESCO said yesterday that the UK was kets, I think they will pull Europe and
unlikely to slide back into recession the United States into a stable and
as it reported a 12.5 per cent increase established recovery.”
in first half profit to £1.6bn. The company said UK like-for-like
The world’s third largest retailer sales excluding petrol rose 1.3 per
said it had been boosted by the cent in the second quarter, compared
strength of Asian markets, offsetting with 1.1 per cent in the first quarter –
“modest” UK sales growth in the 26 but, adjusting for VAT sales, the fig-
weeks to 8 August. ure was just 0.3 per cent higher over
Outgoing chief executive Sir Terry the half-year.
Leahy, who is leaving the company in Tesco has more than 4,800 stores in
March, said the company was in good 14 countries, with two thirds of its
shape in a UK supermarket sector he profit and sales generated in the UK.
branded “the best in the world”. Leahy was delivering his last set of
Sales across the group jumped by results before handing over to inter-
more than eight per cent to £32.9bn national chief Phil Clarke.
over the period. Kate Calvert, analyst at Seymour
Overall UK sales were up by around Pierce, said: “These results show how
three per cent. Asked if the UK econo- with good cost control in the UK and
my was likely to lurch back into reces- internationally, Tesco is seeing the
sion, Leahy said: “My starting point is benefits of the global economic recov-
the global economy, which is in a ery and the benefit of food inflation.”

Russian grocer O’key planning


a £315m London share offer
day.

RETAIL
It did not confirm how much it
RUSSIA’S third biggest food retailer wanted to raise from the deal -- which
O’key plans to raise up to $500m will comprise both primary and sec-
(£315m) in a London share offer to ondary offer of shares.
fund expansion, making it the latest “There continues to be substantial
Russian firm to revive IPO plans. under-penetration of modern retail
O’key, which operates a 52-store throughout Russia and we believe we
chain, will launch a global offering of have the right business model and
global depositary receipts (GDRs), customer value proposition opportu-
with each GDR representing one nity,” chief executive Patrick Longuet
share, by the year-end, it said yester- said.
6 Conservative Conference CITYA.M. 6 OCTOBER 2010

Iain Duncan Smith has been forced into making some concessions Picture: REX

IDS offers lifeline to


business start-ups
Members of the NEA scheme will will eventually be available to peo-
CONSERVATIVE get access to a low cost loan of up ple in low-paid employment as well
CONFERENCE to £1,000 to help with start-up as the unemployed, to ensure that
BY DAVID CROW IN BIRMINGHAM costs, as well as a grant worth up to no-one loses out when they take a
£1,000, paid out in weekly instal- job.
IAIN Duncan Smith yesterday out- ments for six weeks. But Duncan Smith had to make
lined plans to give grants to unem- A network of successful local big concessions to convince the
ployed people who want to set up businesses will be asked to provide Treasury to give the green light to
their own businesses, in a bid to mentoring and support through a his reforms. The Universal Credit
boost the number of first-time website, described as “online dat- will now be phased in over ten
entrepreneurs. ing for entrepreneurs” by an aide years, rather than five, while there

The Halifax Reward The welfare secretary said the


New Enterprise Allowance (NEA)
scheme would offer financial sup-
to Duncan Smith.
Duncan Smith made the
announcement as he unveiled the
have been big cuts to the overall
benefits bill, including the scrap-
ping of child benefit for higher rate
Current Account. port and business mentoring to
enterprising people who are unem-
“biggest reform of welfare in a gen-
eration”. A new Universal Credit
taxpayers.
He also pledged a clampdown on
ployed. will replace the myriad of benefits benefit fraud would not penalise
He said: “If you have been unem- that are currently on offer, includ- those in genuine need.
Make the jump to simple, ployed for six months and want to
start your own business we want to
ing housing benefit and job seek-
ers’ allowance. Officials in the
He said: “I say to those... who are
genuinely sick, disabled or are
great value banking. support you. We will provide busi-
ness mentoring and a financial
package worth up to £2,000 to get
Department of Work and Pensions
estimate there are 31 out-of-work
benefits currently available, rising
retired: you have nothing to fear.
We will crack down on fraud and
help able people off welfare. This
your business up and running. We to 51 if one counts supplementary means we will have enough
At Halifax we like to look after our customers. want to see 10,000 new small busi- and top-up benefits. resources to provide peace of mind
nesses by next year.” Crucially, the Universal Credit to the very vulnerable.”
That’s why our Reward Current Account gives you
£5 each month. And moving to us is easy, our

Head teachers gain power


Switching Team take care of everything for you.
To get your fiver just pay in £1,000 each month.
To find out more, pop into branch, call us

to discipline outside school


on 0845 122 1425 or visit halifax.co.uk

But schools secretary Michael send one clear – and consistent –


CONSERVATIVE Gove yesterday said he was rewrit- message. Heads will have the free-
CONFERENCE ing the guidance that governs head dom they need to keep pupils in
BY DAVID CROW IN BIRMINGHAM teachers’ powers, allowing them to line.”
discipline pupils “any place, any Gove also outlined plans to put
HEAD TEACHERS are to be given time, anywhere. Low-level anti- British history back at the centre of
sweeping new powers to discipline social behaviour will now be the the school curriculum, and
pupils who misbehave outside of responsibility of school principals. announced the appointment of
school gates, as part of new plans “At the moment heads are pre- historian Simon Schama to lead a
to crack down on anti-social vented from dealing with their review into the subject.
behaviour. pupils if they run wild in a shop- He said: “The current approach
Pay in £1,000 each calendar month to receive £5 (net)/£6.25 (gross) monthly. Reward paid net of income tax (at
Currently, heads have no author- ping mall or behave anti-socially in we have to history denies children
the rate specified by law, currently 20%). Higher rate tax payers may need to pay additional tax on the reward ity over pupils when they are off of town centres,” Gove told delegates the opportunity to hear our island
Call us, go online or visit one of our branches for more information on all fees and interest rates. Available only to school premises, making it diffi- at the Tory party conference in history. Our history has moments
personal customers, aged 18 or over and who are resident in the UK. Halifax is a division of Bank of Scotland plc
Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
cult to punish them when they Birmingham. of pride, and shame…. But the
misbehave in the local community. “So we will change the rules to trashing of our past has to stop.”
CITYA.M. 6 OCTOBER 2010 Conservative Conference 7

Victims to have
more power
over police
POLITICS


BY STEVE DINNEEN
HOME secretary Theresa May will tell
police to take anti-social behaviour
more seriously or face official sanc-
tions.
She says the coalition will give vic-
tims and communities the right to
force the authorities to take action.
She will also urge officers to treat
offences like vandalism and intimida-
tion as crimes rather than lower-level
anti-social behaviour.
Speaking at the Conservative Party
Conference in Birmingham yesterday
she said: “Too often we hear stories of
victims who are passed from pillar to
post.
“We hear about victims who call
the police on dozens of occasions but
aren’t taken seriously and in many
cases are ignored altogether.
“So as part of our reforms to anti-
social behaviour powers, we will give
victims and communities the right to
force the authorities to take action
Home secretary Theresa May wants more power for victims Picture: GETTY where they fail to do so.”

City bonuses facing


round two of taxes
CONSERVATIVE economic recovery. tax rate of 50 per cent on income
“Taxpayers bailed you out – now over £150,000 comes into force.
CONFERENCE it’s time for you to repay the favour Earlier this week, the Treasury
BY DAVID CROW IN BIRMINGHAM and start lending to Britain’s small indicated it would be willing to

DOWNING STREET has confirmed


businesses again,” he will say.
“This is basically a slap in the
introduce a FAT for banks and
large building societies, as long as a The Halifax Reward
the government is considering a
second bank levy on pay and prof-
its, after new figures estimated the
face for banks. They will not get
away with it,” said a source close to
the Prime Minister.
handful of other nations, such as
France and Germany, follow suit.
Chancellor George Osborne is
Current Account.
bonus payout for the City would be The government is stepping up planning to discuss the FAT with
around £7bn this year.
Any new levy will take the form
its threats after the Centre for
Economics and Business Research
other finance ministers at interna-
tional meetings like the G20 to Make the jump to simple,
of a Financial Activities Tax (FAT), (CEBR) said the total bonus payout gauge support.
which would be imposed on remu-
neration and profits.
in the City would fall to £6.9bn this
year, compared to £7.3bn in the
Even if nations like Hong Kong,
which is fast-becoming a major
great value banking.
David Cameron will use his con- 2009-10 financial year. international banking centre,
ference speech today to promise to However, the taxman will take refuse to sign up to the FAT, the
“sort out the banks”, who he says home more of the bonus than the government is prepared to press With our simple, straightforward overdraft fees it’s easy
are not doing enough to boost the person who earned it, as the new ahead with the plans. to work out how much using your overdraft will cost;

CITY VIEWS: ARE THE CUTS TO CHILD BENEFIT FAIR? Interviews by Marion Dakers
s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬YOUR¬ARRANGED¬OVERDRAFT¬ON¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
AMOUNTS¬UP¬TO¬AND¬INCLUDING¬a ¬¬
¬ ¬ ¬ ¬ ¬ ¬¬
¬ ¬ ¬

s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬YOUR¬ARRANGED¬OVERDRAFT¬ON¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
SHAREENA RASHID | KAMRAN MIRZA | EMMA THOMPSON | AMOUNTS¬OF¬OVER¬a 
¬ ¬ ¬
AVIVA INVESTORS INTERPRO EUROPE BPP LAW SCHOOL
s¬a¬FOR¬EACH¬DAY¬YOU¬USE¬AN¬UNARRANGED¬OVERDRAFT
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
“I don’t disagree with the “I disagree with the cuts. We’re “I think the changes are fair; it’s s¬!S¬WE¬CHARGE¬FEES¬ON¬THIS¬ACCOUNT¬INSTEAD¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
changes, but I think the flaw in about to have our first child, and another way of redistributing of interest, the typical rate is 0% EAR.
the plan is the limit on individu- I think losing this income as well as reduc- !ND¬THATS¬IT¬.O¬INTEREST¬TO¬PAY¬.O¬SET¬UP¬FEE¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
als rather than benefit would ing the deficit in !ND¬NO¬COST¬WHEN¬YOU¬DONT¬USE¬IT¬
¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬
households. It’s make it harder quite an effective )F¬ONLY¬ALL¬OVERDRAFTS¬WERE¬SO¬SIMPLE¬
¬ ¬ ¬ ¬ ¬ ¬ ¬
sending out half for many people. way. But it To find out more, pop
a message to Bills and tax are should be judged into branch, call us
families who already going up, on household on 0845 122 1425
want to return and it’ll come income, as or visit halifax.co.uk
to work, and as a real it seems a
works shock to much
against people with simpler
single more than way.” Call us, go online or visit one of our branches for more information on all fees and interest rates. EAR is the equivalent annual
parents too.” one child. rate. This is the actual annual interest rate for an overdraft. It does not take into account fees and charges. Overdrafts are
repayable on demand. Available only to personal customers, aged 18 or over and who are resident in the UK. Halifax is a
division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
EUR/USD
1 pip,1% deposit
and no re-quotes.

ì 7LJKWVSUHDGVDQGORZGHSRVLWUDWHVRQFXUUHQF\SDLUV
ì (8586'86'-3<IURPSLS*%386'IURPSLSV
ì :RUOGOHDGHUVLQILQDQFLDOVSUHDGEHWWLQJIRU\HDUV

Start forex spread betting at igindex.co.uk or call 0800 195 3100.


6SUHDGEHWWLQJFDQUHVXOWLQORVVHVWKDWH[FHHG\RXULQLWLDOGHSRVLW
CITYA.M. 6 OCTOBER 2010 Focus on Jerome Kerviel 9

TIME LINE | HOW KERVIEL BLEW €5BN


● 2000 finds controls at the bank lacked depth. Bouton, whose reputation was hit by a
The trader starts at SocGen in the middle ● 17 April 2008 trading scandal at the bank, resigns and
office, the department which controls SocGen says Bouton is relinquishing his blames relentless verbal attacks on his
traders’ activities. job as chief executive but will stay on as performance for his decision to quit.
● 2005 chairman of the board. ● 10 November 2009
Kerviel becomes an arbitrage trader in ● 4 July 2008 Kerviel loses appeal to delay trial.
what SocGen’s investment banking chief France's Banking Commission fines ● June 2010
calls a “very unusual” recruitment path SocGen €4m for serious breaches in Trial of Kerviel lasts over two weeks.
for a trader. His experience gives him sig- internal controls. Kerviel is branded a liar who took “inhu-
nificant knowledge of the bank's control ● 31 August 2008 man” risks by a former boss, former head
systems. Kerviel charged with fraud and breach of of investment banking, Jean-Pierre
● 24 January 2008 trust and ordered to stand trial. Mustier.
SocGen uncovers fraud involving Kerviel, ● 3 September 2008 ● 10 November 2009
resulting in a loss of €4.9bn. Kerviel appears at a court hearing. Kerviel is found guilty of breach of trust.
Kerviel emerges ● 8 February 2008 ● 6 October 2008 The judges say Kerviel had not been given
from court after Kerviel is jailed but leaves in March after SocGen unveils €4.8bn capital hike to even tacit authorisation from his bosses to
being sentenced winning legal battle. repay state support and pursue acquisi- speculate excessively and that SocGen’s
to five years. ● 20 February 2008 tions. own shortcomings did not exonerate him
Picture: REUTERS Internal investigation into trading loss ● 29 April 2009 from his duties as a professional trader.

Rogue trader
prepares for
prison term
risk billions on his market hunches.

BANKING
More than €50bn was tied up in his
BY STEVE DINNEEN crackpot plan. And eventually it all
JEROME KERVIEL emerged from court came crashing down.
yesterday sharp-suited and ashen- Since his arrest Kerviel, 33, has
faced, like a lost member of the been lauded by the French public as
Reservoir Dogs cast, knowing he was an anti-hero of the financial crisis, a
about to swap his black tie for a set of man who superficially appeared to
prison overalls. He will wear the new prove the public belief that the finan-
outfit for around two years, after cial system was dangerously out of
being handed a five-year prison term control.
for blowing €4.9bn (£4.3bn) of Societe He became a celebrity. Websites
Generale’s money. sprang up lionising the rogue trader;
His conviction for forgery, unau- he released a book about his experi-
thorised computer use and breach of ences (albeit to modest sales); t-shirts
trust was the inevitable conclusion to bearing his name sold in their thou-
an almost unbelievable chain of sands. As the face of the financial cri-
events, in which one man threatened sis, Kerviel was perfect. Young,
to bring down the entire French handsome, stylish and arrogant.
banking system. He goes to prison as one of the
Almost as implausible has been most famous men in France, a pin-up
Kerviel’s personal journey. A bright boy for people opposing the system
but never gifted student, he graduat- he loved. A movie of his life is a racing
ed from an average university before certainty.
starting his career at SocGen as, iron- But it’s not all good news. Kerviel is
ically, a compliance officer. As a still liable for the €4.9bn he blew.
banker he was largely overlooked, a Going by his last salary, it will take
tiny cog in a sprawling machine, his him nearly 50,000 years before he is
hands tied when it came to making back on even terms.
the big trades he craved. After eight For SocGen it is the start of a very
years he was still earning a relatively different journey. After being cleared
meagre £75,000 a year. of turning a blind eye to Kerviel’s
Then, like a true gambler, he hit actions (not “responsible for the crea-
upon a system: a system that would ture that it had created”, in the words
prove to be the least effective in bank- of the judge) it can start to rebuild its
ing history. He masked vast trades reputation. It will be a long road for
with fake hedge bets, allowing him to both parties.

Why was Kerviel sentenced to four


years when Madoff received 150?
Last night Kerviel’s five year sentence, sentence in a Singaporean jail. And
of which two were suspended, was Allied Irish Banks’ John Rusnak was hit
already being branded paltry. For a man with a 7 1/2 year stretch in the US for
who blew a staggering sum of money, a concealing a relatively insignificant
term that could last less than two years $691m.
seems remarkably generous. In many ways, Kerviel is lucky he
Certainly when compared to the committed his crimes in his home
dizzying 150 years handed to Bernard country, where sentences are more
Madoff for his $20bn ponzi scheme it lenient: he could have faced 20 years
seems like a walk in the park. He will if tried in the US. However, his time is
only be 35 on his release – Madoff not likely to be easy. French prisons
would be 222. Nick Leeson, the banker have the highest suicide rates in
behind the Barings Bank collapse in Europe and there are numerous
1995, served four years of a 6 1/2 year reports of breaches of human rights.
10 Economic News CITYA.M. 6 OCTOBER 2010

Bank of Japan
cuts interest
rates to zero


CURRENCIES

THE JAPANESE government bond


yield curve steepened yesterday after
the Bank of Japan (BOJ) launched an
asset buying scheme, while super-
long yields rose on disappointment it
was not more aggressive about buy-
ing debt.
The BOJ also cut interest rates to
near zero and pledged to keep rates
effectively at zero until prices were
seen stabilising.
Such a commitment was expected
to help support short to medium-
term bonds.
In addition, since yields on such
sectors are already very low, it may
also help prod investors to buy long-
term Japanese bonds such as 10-year
bonds, market players said.
“The time horizon for keeping
interest rates low was extended and
clarified ... and that will make it easi-
er to buy short and medium-term
JGBs [Japanese government bonds],”
said a dealer for a Japanese brokerage
house. BOJ governor Masaaki Shirakawa has cut rates to zero Picture: GETTY

Moody’s eyes fresh


cut to Irish ratings
WORLD ECONOMY begin repairing the country’s bat- to bring the deficit below three per

BY HARRY BANKS tered finances, the ratings agency cent of GDP by 2014, and in that
worried that prolonged austerity context additional measures are to
MOODY’S has warned it may cut could cripple domestic demand be expected,” said Dietmar
Ireland’s credit rating again, saying with a knock-on impact on govern- Hornung, Moody’s lead sovereign
additional austerity measures are ment revenues. analyst for Ireland.
needed given the huge bill for clean- In the latest sign of growing dis- •Meanwhile, Allied Irish Banks
ing up its banks, a weak economic tress in the real economy, Ireland’s (AIB) said yesterday it will sell a 22
recovery and rising borrowing costs. services sector shrank for the first per cent stake, currently valued at
Ireland’s deeply unpopular gov- time in six months in September around $2.2bn, in New York region-
ernment says it could cost up to following a sharp drop in domestic al lender M&T Bank Corp in a public
€50bn (£43.4bn) to unravel banks’ orders. The purchasing managers’ offering.
property losses, driving the cost of index survey came on the heels of The Irish government will take a
Dublin’s borrowing to almost three data last week indicating the manu- majority stake in AIB next month to
times that of Germany and prompt- facturing sector was also back in help it fill a capital hole of €10.4bn
ing renewed jitters about debt else- recession. caused by the bank’s fatal courtship
where in the Eurozone. “It’s important to anchoring fis- of property developers during the
While Moody’s emphasised there cal expectations that the govern- go-go years of the “Celtic Tiger”
must be additional fiscal rigour to ment comes up with a credible plan economy.

IMF warns banks still pose


threat as currency war looms
GLOBAL ECONOMY “The global financial system is estimate of $2.3 trillion.

BY HARRY BANKS still in a period of significant uncer- Separately, the head of the
tainty and remains the Achilles’ International Monetary Fund
SOVEREIGN debt risk in Europe and heel of the economic recovery,” the warned yesterday that countries
continued real estate woes in the IMF said in its twice-yearly Global risked undermining the global eco-
United States have dealt a setback to Financial Stability Report. nomic recovery if they sought to use
global financial stability in the past “The recent turmoil in sovereign their currencies to boost domestic
six months, the International debt markets in Europe highlighted growth.
Monetary Fund said yesterday. increased vulnerabilities of bank “There is clearly the idea begin-
The IMF said risks to the financial and sovereign balance sheets arising ning to circulate that currencies can
sector could be reduced if legacy from the crisis,” the fund said. be used as a policy weapon,”
problem assets were cleaned up, if The IMF said it trimmed its esti- Dominique Strauss-Kahn told the
governments improved their fiscal mate of total global bank write- Financial Times. “Translated into
positions and if more clarity were downs related to the financial crisis action, such an idea would repre-
provided on global financial regula- between 2007 and 2010 to $2.2 tril- sent a very serious risk to the global
tion. lion (£1.38 trillion) from its April recovery.”
CITYA.M. 6 OCTOBER 2010 Economic News 11

Fears of double-dip
ease on services rise
ECONOMY

slight fall to 51.0. for the coming year increased to a


BY HARRY BANKS However, planned cuts to govern- four-month high but remained
ment departments’ spending of subdued by historic standards.
BRITISH services activity growth around a quarter over the next five “Unless trends in new business
rose unexpectedly in September years already seem to be affecting show an improvement soon, the
from a 16-month low, but the out- the firms covered in the survey, lack of confidence is consistent
look is poor with the weakest which excludes most activity in the with a downturn in business activi-
inflow of new business in over a public and retail sectors. ty in the coming months,”
year, a survey showed yesterday. “Inflows of new work and Williamson said.
The figures are unlikely to alter prospects for the year ahead have Markit said that third-quarter
expectations that the Bank of been hit by widespread worries service-sector output was the weak-
England will keep its ultra-loose that the recovery is losing steam, est since the second-quarter of
policy stance unchanged later this cancelled government contracts 2009.
week and probably well into next and the prospect of more cuts to This bodes ill for third-quarter
year. come,” said Markit’s chief econo- GDP growth, which economists
The headline index of the mist, Chris Williamson. already expect to slow sharply from
Markit/CIPS services PMI index The new business component a nine-year high of 1.2 per cent in
increased to 52.8 from 51.3, versus slowed to a 15-month low of 51.3 the second quarter as temporary
economists’ expectations for a from 51.4. Business expectations factors fade and spending cuts bite.

Eurostat may
revise Greece’s
2009 deficit

WORLD ECONOMY
EU statistics agency Eurostat may
revise upwards Greece’s 2009 budget
deficit but this will not significantly
impact this year’s fiscal gap, a senior
official at Greece’s finance ministry
said yesterday.
“Even if there is a significant revi-
sion for 2009, the impact on the 2010
deficit will be very small,” the offi-
cial, who did not want to be named,
said.
Greece expects to slash this year’s
budget deficit to 7.8 per cent of GDP
from 13.8 per cent in 2009, based on
its draft 2011 budget unveiled on
Monday. Next year it wants to shrink
the budget hole to seven per cent,
below a 7.6 per cent target under an
IMF/EU bailout plan.
Eurostat said in April it might
revise upwards Greece’s 2009 deficit
by up to 0.5 percentage points of
GDP, and public debt by between five
and seven percentage points, to
account for uncertainties in the
Greek premier George Papandreou is under pressure Picture: GETTY reported statistical data.

Bernanke says it’s too early


to cut deficit despite growth
WORLD ECONOMY allowed to expire at the end of this 51.5 in August provided some hope

BY HARRY BANKS year. that economic activity picked up in


Bernanke’s policy is in direct the third quarter.
FEDERAL Reserve chairman Ben contrast to that of Bank of England The reading was above the 52
Bernanke yesterday warned against govenor Mervyn King who has pub- median forecast by economists. A
taking immediate action to reduce licly backed the coalition’s govern- reading above 50 indicates expan-
the US deficit warning it could ment’s plan to slash spending next sion in the sector.
derail the nascent recovery. year. The index showed services firms
“Economic conditions provide Bernanke’s comments came as took on more workers in September,
little scope for reducing deficits sig- fresh data showed the pace of with the employment component
nificantly further over the next growth in the US non-manufactur- rising to 50.2. Though that reflected
year or two,” Bernanke told an ing sector accelerated more quickly only modest hiring, it was above
audience in Rhode Island. “Indeed, than economists had expected. August’s reading of 48.2, which
premature fiscal tightening could The jump in the Institute for shows the sector shed jobs that
put the recovery at risk,” he added Supply Management’s services sec- month. New orders rose to 54.9
implying tax cuts should not be tor index to 53.2 in September from from 52.4.
The Capitalist
12 CITYA.M. 6 OCTOBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
[email protected]

PETTIGREW “I love the


idea of a few
CALLS ALL pinstripes up
against a few
ABOARD FOR paras,” says
STEAM RIDE charity race
organiser
IT was all aboard at Tower Pier last night as Steve Tredget is no stranger to mud
City bigwig Jim Pettigrew added an unusu- Steven
al venture to his impressive CV, which recently hosted a horse trial, muddy run-
includes stints at Marks and Spencer, CMC Tredget ners could well feel they have earned the
Markets, Icap and, in his current role, serenade. Of course, City joggers know
Aberdeen Investment Managers. Pettigrew that mud is good for you, and Tredget is
played host as fellow City figures arrived to inviting anyone tempted to take part to
experience his latest venture: the relaunch show up on Sunday. Look up the logistics
of the world’s last seagoing paddle steam- at www.race100percent.com.
er, The Waverley. Pettigrew had the steam- The Waverley steam boat passed under Tower Bridge with 100 guests aboard Picture: Micha Theiner
er paddle its way down from Scotland to
take up residence in the Thames for its sponsorship forms and so on,” says SOLDIER, SAILOR
grand opening cruise during which guests
admired its fully restored steam engines
STICK IN THE MUD Tredget. To deepest Essex, where The Capitalist
Over a hundred competitors will brave The race is set to include runners from recently caught up with Simon Moore,
and supped on canapés. “Hopefully corpo- the mud this weekend at the 100% 10km Liberum, Barclays Capital and Citigroup, intrepid chief executive of the London
rates around London will start to use it as Run, organised by Steven Tredget. with a fierce rivalry developing between Gateway port development at the mouth
an events space for charities,” he told The Readers might already know Tredget, the brokers and rival fund managers of the Thames. An ex-Navy man, Moore
Capitalist as he readied himself for its glam- who is known variously as the City’s Iron from Octopus Investment Managers. But was keen to impress his nautical prowess
orous voyage. With the 100-strong guest Man, “the Tredge” and Liberum Capital’s Tredget thinks they might both be out- upon a boatload of hacks during a tour
list including former Treasury select com- head of equity sales. The event is being done by the soldiers taking part: “I love of the still-waterlogged site. “I’ve sailed
mittee head Labour MP John McFall, as held in aid of Kids Company, a charity the idea of a few pinstripes up against a on ships around the world – and I’ve not
well as representatives from the Royal that helps 14,000 kids from deprived few paras,” he says. And he has left no once worn a coat on deck,” boasted
Bank of Canada, Lloyds and Invesco backgrounds in the City. The idea is that detail ignored: runners will get goodie Moore, who donned nothing but a crisp
Perpetual, and with the addition of an instead of going through the hassle of bags courtesy of Zetar and For Goodness shirt and appropriate navy blue tie
impromptu bagpipe solo from an getting sponsors, runners will pay £20 Shakes and can look forwards to being under his life jacket. “I’ve spent 90 per
enthused Alistair Campbell as the party each to enter the race, with 100 per cent greeted by a band of bagpipers after they cent of my working life in the sunshine,
wound down -- the boat could hardly have of profits going to the cause. slave up the biggest hill. so Essex is a bit of a challenge – but I
hoped for a more auspicious launch. “I thought if you just put all the profits And with the Surrey course – which is don’t intend to start wearing coats now.”
Bon voyage. to charity, it would avoid the hassle of on Ministry of Defence land – having Brrr.

Future City after-work debates


every night this week
s "ANKERSAND"ONUSES7HATHASTHE#ITYEVERDONEFOR,ONDON
s )S,ONDONGROWINGTOOBIGTOOFAST
s ,ONDONANDTHE/LYMPICSnPREDICTINGTHELEGACY
s )S,ONDONMISSINGOUTONNEWTECHNOLOGIES
s 7ILL,ONDONSTILLBEAMAJORGLOBALPLAYERIN
3PEAKERSINCLUDE3IR4ERRY&ARRELL !DAM(ART $AVIS
3TEVEN"AYLEY 0ETER9ORK 2UTH-ACKENZIE
 /CTOBER\PM PMBAROPENPM \aaCONCESSIONS
 /CTOBER "RITISH,IBRARY
"OOKNOWWWWBLUKSTORYOmONDON
WWWLONDONGOVUKSTORY
14 News CITYA.M. 6 OCTOBER 2010

FSA mortgage
Sportech in plans would
£51m deal for have left 4m
without loans
US bets firm


PROPERTY
BY MATTHEW WEST
NEARLY four million homeowners
would have been denied a mortgage
forms. between 2005 and 2009 under afford-

LEISURE
BY JOHN DUNNE He said: “This is a massively impor- ability proposals put forward by the
tant move for us and makes us very Financial Services Authority (FSA), the
FOOTBALL pools operator Sportech well placed in a changing US market. Council of Mortgage Lenders (CML)
yesterday completed a £51.4m acquisi- Over the past three years Sportech said yesterday.
tion of US-based gaming group has undergone significant restructur- It said that amounted to over half
Scientific Games Racing (SRG) and ing, culminating in the completion of Central London property prices have fallen 0.2 per cent Picture: Micha Theiner/City A.M. of all loans during the period not
said it was looking to further expand the SGR acquisition. This acquisition being granted to potential borrowers,

Central London homes hit


its presence in the country. creates a world-leading pools betting despite the fact most were coping
SGR’s parent company, Scientific company with international reach. with repayments.
Games Corporation, now holds a 19.9 “As well as significant growth The trade body also warned
per cent stake in Sportech, under the potential in our existing main mar- 730,000 first time buyers, equivalent

as summer lull takes a toll


terms of the deal. kets of Europe and North America, to 95 per cent of all those trying to get
The acquisition will transform the the enlarged Sportech will have the onto the property ladder, would have
Liverpool-based group into one of the scale and capability to compete in the been rejected by lenders as affordabil-
world’s leading pool and tote betting new and emerging regulated global ity criteria would have been too tight.
operators. gaming markets.” The CML said that while its analysis
It will now have a significant The company said it was not taking was backward looking it suggested
foothold in football and horseracing, on any debt to finance the acquisition PROPERTY The fall is the first since March the impact of the FSA proposals on

across Europe and North America. which had been carried out with a BY MATTHEW WEST 2009 and although prices have risen the future mortgage market would be
The completion of the deal has number of partners. Penrose added: by 5.9 per cent on last year they are significantly higher than the regula-
taken almost a year as regulators in “This is a solid investment.” HOUSE prices in central London fell still 11.1 per cent below their tor’s own assessment.
the US and Europe have been scrutin- for the first time in 18 months in the September 2007 peak. Moreover, some 80 per cent of
ising the details. Sportech will now ANALYSIS l Sportech third quarter of the year, the property Andrew Stanford, head of Cluttons’ impaired credit borrowers would
operate from bases in the Hague, in p 42.50 firm and chartered surveyor Cluttons residential professional division said have been denied a mortgage despite
44 5 Oct
the Netherlands, Essen in Germany, said yesterday. prime located properties were hold- only 20 per cent of them experienc-
and Connecticut and Atlanta in Prices fell 0.2 per cent, reversing a ing their value to a certain extent, ing difficulties in meeting repay-
North America. But the Liverpool 0.9 per cent increase in the previous although potential buyers had ments in 2009, the CML said.
operation will remain the headquar- 40 quarter, as demand for property become more discerning with But in a statement the FSA said its
ters of the new group which will weakened and the number of proper- demand focused on properties in the proposals were designed to “address
process more than £8.2bn in bets. ties offered for sale over the summer mid-market range up to £2.5m the major failures that have occurred
Chief executive Ian Penrose said increased. House prices in prime cen- “Only properties in prime locations in the mortgage market”, and that its
38
that the US offered a gateway to more tral London locations remained flat or those with a unique selling angle evidence showed “16 per cent of mort-
sales both online and in the more tra- while in non-prime city locations were receiving real interest from gage borrowers were already finan-
ditional method of betting on paper 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep house prices fell. potential purchasers,” he added. cially overstretched.”
CITYA.M. 6 OCTOBER 2010 News 15

Tui gains from


collapse of
smaller rivals Chief executive Peter Long says the
security Tui offers as a major tour

TRAVEL the previous year, while summer 2011 operator has helped sales.
BY STEVE DINNEEN booking volumes were up five per Picture: REX
cent in the UK and up 18 per cent in
TUI Travel yesterday released what an the Nordic region, the two markets it
analyst described as a “real
humdinger” of a trading statement
currently has on sale.
The company said its summer 2010 ANALYST VIEWS: WHAT DO Y0U THINK OF TUI’S TRADING UPDATE?
By Steve Dinneen
for August and September as it took programme, which runs to the end of
advantage of the collapse of some of October, was almost fully sold after a
its smaller rivals. surge in late bookings. WYN ELLIS| NUMIS CHRIS ALEXANDER| BNP PARIBAS

“ “
Europe’s largest travel firm said After warning on profit in August,
holiday bookings for winter and next TUI Travel maintained guidance for
summer were encouraging and said the year. Analysts are predicting full- Demand has held up well over the sum- This morning’s update strikes a more
net debt should fall by more than it year profits for Tui of £269.5m on mer and TUI appears to be encouraged by the confident posture than that from Cook last week.
expected. sales of £13.4bn.
Chief executive Peter Long said hol- apparent return of consumer confidence. In bookings terms, the summer was OK, but win-
idaymakers were seeking the security ANALYSIS l TUI Additional restructuring is required however, ter bookings are better – TUI has probably out-
225.50 notably at Corsair (possibly£60m) and in the UK performed Cook and raised market share. In the
of a major tour operator after the fail- 5 Oct

” ”
240
p
ure of a number of smaller operators (around £20m). High levels of exceptional near term we see few catalysts to lead to
and airlines earlier this year, claim- costs are a sadly recurrent feature. a material revaluation.
ing: “We have benefited from this 220
flight to quality.”
British travel companies that have RICHARD CURR| PRIME MARKETS


collapsed, leaving thousands of pas- 200
sengers stranded, include Kiss Flights,
Goldtrail and Sun4U. Tui Travel has well and truly caught the market napping this morning, with a real humdinger of a trading update. the


TUI said winter sales in the UK group has taken advantage of tough trading conditions to build market share as smaller operators struggle and fail, and with
were up 17 per cent compared with 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep net debt reduced and positive noises for summer 2011, shareholders should see some decent gains in coming weeks.
16 News CITYA.M. 6 OCTOBER 2010

Superwoman Horlick
sets up film finance firm
to develop 25 films over the next She also dispelled any suggestion

PRIVATE FINANCE
BY MATTHEW WEST three years, either developing a book that she would be financing her hus-
into a film from the ground up or band, journalist Martin Baker’s
BRAMDEAN Asset Management, the investing in an existing script, which attempts to turn his book, Meltdown,
investment company run by the City needed some more money to reach set at the height of the financial cri-
fund manger once dubbed super- completion. sis, into a film.
woman, Nicola Horlick, will launch a Horlick said many producers were She said: “My husband has been
film development company today. concerned about the lack of develop- working on a script for his book and
Derby Street Films is seeking £2m ment finance available. She added has been working with a producer in
from private investors to develop Derby Street Films would provide a Hollywood but the timing of the
books and potentially television pro- safe bet for investors, while providing launch of the company and that are
grammes into movies. the finance producers wanted, as it purely coincidental and we have
Horlick said the company planned didn’t depend on box office success. nothing to do with it.”

Bramdean’s Nicola Horlick is seeking £2m for her new film development company Picture: REX
CITYA.M. 6 OCTOBER 2010 Focus on Recruitment 17

... but UK job demand falls


UK ECONOMY
BY MATTHEW WEST And hourly pay among temporary ment cutbacks and efforts to reform
and contract staff actually decreased the NHS, which KPMG partner and
OVERALL demand for staff among marginally in September for the first head of business services, Bernard
employers across the UK grew at its time in nine months. Brown warned “may be only a sign of
slowest rate in almost a year last Engineering, construction and things to come.”
month, a report published today will executive staff were those most in Kevin Green, chief executive of the
City job vacancies are at their highest level since 2007 Picture: REUTERS show, prompting fears the economy demand indicating a continuing REC, said September’s report showed
may be slipping back into recession. recovery in the private and manufac- the jobs market was “starting to flat-

City jobs at
The Recruitment and Employment turing sectors. line” adding the figures could “her-
Confederation (REC)/KPMG report But public sector recruitment had ald a ‘double dip’ in employment”.
showed a slower rise in both perma- seen a severe drop in demand as Green said: “While there is margin-
nent and temporary vacancies during organisations began redundancy pro- al growth, these figures are the worst
the month. grammes or imposed hiring freezes. we have seen for a year. The govern-
Salary increases among permanent There had been “a sharp decline” ment must do everything possible to

highest level
staff also rose by the lowest amount in the demand for healthcare profes- avert the threat of increasing unem-
in ten months, the report shows. sionals as a direct result of govern- ployment.”

since 2007 ...


debt obligation product experience in

UK ECONOMY
BY MATTHEW WEST areas such as project management,
performance analysis, back office,
THE number of job vacancies in bank- risk and compliance, finance depart-
ing and financial services has reached ments and marketing teams were in
levels not seen since before the credit particular demand, Ambition added.
crunch, a forecast by a City recruit- Tim Gilbert, UK managing director
ment consultancy claimed yesterday. of Ambition, said: “We predicted in
Recruitment firm Ambition said early 2010 that there would be rapid
job vacancies in the City were now up growth in the City and this forecast
260 per cent on the first quarter of has played out. Significant increases
2009, which was at the height of the in demand for staff off the back of
economic downturn. the equities markets helped fuel the
While there had been a slight early growth. But increased activity in
decrease in the number of vacancies the fixed income market has boosted
between the second and third quarter many companies’ appetite to hire in
of this year, overall the number of recent months.”
roles available remained higher than But the City is currently suffering
at any point since 2007, according to a skills shortage, warned the recruit-
the report. ment company, with more vacancies
The growth in job vacancies had than skilled candidates available to
been driven by increased business fill them.
activity in the fixed income and for- There are currently 11 vacancies for
eign exchange markets, said every 10 candidates actively searching
Ambition. for work in the City, said Gilbert, a
Expansion in the interest rates, ratio which had risen sharply from
structured rates and structured cred- the three vacancies per 10 candidates
it markets during 2010 had also led in the first quarter of 2009.
many City institutions to add to their Gilbert added candidates were
workforce, the report found. more confident about their prospects
Candidates with interest rate, cred- than at any time in the last three
it default swap and collateralised years.

ANALYSIS l Number of financial services vacancies by quarter


750
xx
Source: index Points

80

40

0
02 07 03 07 04 07 01 08 03 07 03 08 04 08 01 09 02 09 03 09 04 09 01 10 02 10 03 10

Big three recruitment firms are


expected to post solid growth
growth to be broadly flat at Hays,

UK ECONOMY
arguing its exposure to the public sec-
THREE of the capital’s largest recruit- tor in the UK could potentially hold
ment firms are due to provide trading growth back despite the fact it is
updates this week. making greater in-roads into conti-
Robert Walters is due to report nental Europe and Asia.
third quarter gross profit today. Collins Stewart upgraded its recom-
Hays is due to publish first quarter mendation on Robert Walters to
growth figures tomorrow, while “buy” from “hold” while remaining
Michael Page will announce third neutral on Hays and Michael Page.
quarter figures on the same day. Hays only announced its full-year
Fund managers Collins Stewart yes- results to 30 June five weeks ago.
terday forecast gross profit in the An City insider told City A.M. that
range of £110m and £113m for analysts will be looking to see
Michael Page and £40.5m for Robert whether it has lowered its public sec-
Walters. However, it said it expected tor exposure since then.
18 News CITYA.M. 6 OCTOBER 2010

Grainger is
Restructuring HARBINGER SELLS 14.1PC OF INMARSAT

upbeat on
cuts Northern residential
Foods’ costs


PROPERTY
BY HARRY BANKS
THE largest quoted housing landlord,
Grainger, said yesterday it expects
the valuation of its cornerstone resi-
FOOD PRODUCERS rise in input costs going into 2011. dential property portfolio to outper-

BY HARRY BANKS But he said action taken at the start form the market when it issues its
of the last recession, when the firm full-year results in late November.
FOOD manufacturer Northern Foods increased the proportion of value Chief executive Andrew
saw sales growth accelerate in its sec- lines to 20 per cent of sales, meant it Cunningham said the 13,000-proper-
ond-quarter and said it was changing was well placed if consumers rein in ty portfolio, about half of which is in
the structure of its business to save spending. London and the south east of
money as it braces for a possible dou- “If it happens again we can react England, would benefit from the
ble-dip recession. very quickly and deliver what the strength of those markets. “I would
“We don’t know whether there’s retailers want,” he said. say in terms of valuation it will out-
going to be a double-dip or not but we Northern Foods has lost over a perform,” he said, referring to the
are planning for it and keeping a third of its value over the last year, recent annual valuation of
weather eye open on it,” chief execu- underperforming a five per cent rise Grainger’s portfolio for its full-year
tive Stefan Barden said yesterday. He in the UK food producers’ index. The results.
said the firm, which makes own-label stock closed up half a per cent yester- “You can’t be blind to the fact that
products for retailers as diverse as pre- day, valuing the business at £216m. broadly prices in London and the
mium food seller Marks & Spencer The firm said underlying sales rose south east have remained pretty
and discounter Aldi, would shift from 7.1 per cent in its second quarter to 2 strong,” he said. Grainger’s UK resi-
five business units to two divisions – October, having fallen 1.6 per cent in dential properties were worth £1.6bn
branded and chilled. the first quarter. The outcome reflect- on 31 March, he said.
The branded division will comprise ed a rise of 16.4 per cent in the chilled In September, data from
Goodfella’s Pizza, McDougalls and division and a 10.9 per cent increase Hometrack showed house prices rose
Hollands Pies, Fox’s Biscuits and in the bakery division. at their slowest annual rate in seven
Matthew Walker Puddings, while the months in September, with prices
chilled division will combine sand- ANALYSIS l Northern Food falling monthly in all regions. The
wiches and salads with ready meals p 46.00 data showed house prices were up
and the firm’s British Airways supply 48 5 Oct one per cent year-on-year.
business. Cunningham also said the margin
Northern Foods said the move 46 at which Grainger sells its residential
would mean a restructuring charge of properties would be up on last year,
up to £6m, with payback by the end but declined to give a specific figure
44
of 2011. Some jobs would go with a ahead of its full-year results.
consultation programme under way. US HEDGE fund Harbinger Capital Partners has halved its stake in satellite operator Grainger achieved a margin of 37.6
Barden said he expected competi- 42 Inmarsat, headed by Andy Sukawaty (above), ending constant bid speculation. Harbinger, per cent on property sales in its 2009
tive market conditions to continue which still holds 14 per cent of the stock, sold 65m ordinary shares at 630p per share or full-year, down from 45.9 per cent in
and forecast a two to four per cent 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep £410m, after deciding not to make a full offer. Picture: Micha Theiner/City A.M. 2008.

Kazakhmys chairman offloads chunk


of shares to the Kazakh government
COMMODITIES ing it the second biggest loser in the fund Samruk-Kazyna. He sold the

BY HARRY BANKS blue chip FTSE 100 index. shares on the Kazakh stock
“We think the market will see exchange for the equivalent of
KAZAKHMYS chairman Vladimir two negatives from the announce- 1,423p each, Monday’s closing price
Kim has sold nearly a third of his ment: the state’s increasing control in London.
stake in the company to the Kazakh of the business, and Mr Kim being a Kim agreed not to sell any more
government for about $1.3bn seller at current levels. As a result shares for 12 months, except for a
(£818m), sparking concerns about we expect profit taking in the near- stake representing four per cent of
increasing government involve- term but see no change to the the company which would be avail-
ment in the copper producer. underlying investment case,” able to promote liquidity during a
Kim sold about 11 per cent of the Liberum Capital said in a note. possible secondary listing in Hong
London-listed company to diversify Evolution Securities cut its rating Kong next year, it said.
his investments ahead of a possible on the stock to “Reduce” from A listing there would be natural
secondary listing next year in Hong “Add” with a price target of 1,290p. since the region is important for
Kong, the firm said yesterday. Kim reduced his stake in the the company. Kazakhmys sells the
Shares in Kazakhmys – the company to 27.9 per cent from 38.9 bulk of its products there and it has
world’s 10th biggest copper produc- per cent, selling the shares to the formed a joint venture with China’s
er – fell 2.8 per cent to 1,383p, mak- government’s national welfare Jinchuan Group.

VLADIMIR KIM country’s industries. He was the The Sunday Times also named him
chief executive of one of its compo- as the 14th richest UK resident.
KHAZAKHMYS nent companies, JSCZ, before taking Kim serves on the board of
the chair at Kazakhmys in Eurasian Natural Resources
September 2005 when the firms Company (ENRC), another FTSE
merged. 100 miner with a focus on
His close ties to Kazakhstan hit Kazakhstan. He bought a 25 per
the headlines this summer, after cent stake in ENRC from its
pressure group Global Witness founders in 2006, but this has
claimed his links with the govern- slimmed down to around 15 per
ment could clash with shareholder cent since ENRC’s London float.
VLADIMIR Kim, aged 50, has long rights, though the company insisted The two firms have regularly been
been a cornerstone of Khazakh its disclosure regime was vigorous. subject to merger gossip – but now
commerce. He joined an embryonic Kim was listed 247th in Forbes’ that Kim has reduced his stake in
form of Kazakhmys in 1995, as the rich list earlier this year, with a per- Kazakhmys to 27.9 per cent, the pos-
government was privatising the sonal fortune of $3.7bn (£2.33bn). sibility is even more remote.
CITYA.M. 6 OCTOBER 2010 News 19

Gymboree hires
Pandora lists Goldman Sachs
in strong $2bn to consider float

market debut
RETAIL


CHILDREN’S apparel retailer
Gymboree is understood to have
hired Wall Street investment bank
Goldman Sachs to begin a formal auc-
tion of the company, which could
fetch more than $1bn (£628m).
Sources close to the deal, who

CONSUMER (£24.50) per share offer price. declined to be identified by name


BY HARRY BANKS Pandora priced its Copenhagen IPO because they were not authorised to
at the high end of a previously indi- Pandora jewellery chairman Allan Leighton Picture: Micha Theiner/City A.M. speak with the media, confirmed the
PANDORA, the Danish jeweller, cated range of 175-225 crowns. move yesterday.
made a strong debut in one of Sydbank analyst Soren Lontoft Gymboree, which runs retail stores
Europe’s largest bourse listings this Hansen said the IPO price was “fair” ROTHSCHILD and the Enevoldsen family who and play centres in the United States,
year, worth up to $2.1bn (£1.3bn), as but assumes strong prospects for the launched the business in 1982, sold hired Goldman last month after it
investors bought into prospects for its firm. just under 36 per cent of their holding was approached by at least two
main product – charm bracelets. Pandora, established as a in the business. This will rise to 41 per firms – one of which was Apollo
Analysts said Pandora’s high Copenhagen shop in 1982, has grown cent if demand for the shares exceeds Management, according to the New
growth and strong margins made its briskly over the past decade, with the original amount offered. City York Post newspaper.
initial public offering (IPO) attractive sales of around €465m (£404m) in heavyweight Allan Leighton was draft- Billionaire Leon Black’s Apollo
to investors hungry for new stock 2009. ed in as chairman over the summer. Management – whose recent unso-
after a period of scant IPO activity, The IPO values Pandora, which “Whenever you bring Allan into a licited approach to Gymboree helped
despite its short track record and made 86 per cent of first-half sales ROTHSCHILD was among the lead project he inevitably puts his stamp on spur the auction that’s now under
heavy reliance on a single product. from bracelets and charms, at about advisers to Danish jewellery firm it,” said the banker. “He has a lot of way, according to one source – is
Pandora, which has former Asda $5bn and makes the listing one of the Pandora that surprised markets with international experience and he will expected to be among the leading bid-
and Post Office boss Allan Leighton as top five largest in Europe this year. its strong debut yesterday. bring this to bear as the company ders, the newspaper said.
its chairman, sells mass-market jew- The shares debuted at 225 crowns “We thought investor appetite seeks to expand into emerging mar- Other buyout firms such as Bain
ellery mainly in the United States and and climbed as high as 251.90 crowns would be good because this is a com- kets in Brazil and eastern European.” Capital, KKR, Apax Partners and
Europe that is priced between £100 to before cooling to 247.50 crowns -- still pany that is growing strongly and still Goldman Sachs, JP Morgan, Irving Place Capital have also shown
£900. up nearly 18 per cent from the IPO has the emerging markets to expand Morgan Stanley and Nordea were interest in the San Francisco-based
Shares in Pandora, which manufac- price -- in unusually heavy volumes. into,” said a banker connected to the joint global coordinators and bookrun- retailer, the paper said.
tures jewellery relatively cheaply in “The idea is to make [this] into one deal. But the strength debut certainly ners for the IPO, while Carnegie and Gymboree was founded by Joan
Thailand where it employs the bulk of the most successful branded com- exceeded our expectations.” SEB were co-lead managers. FIH Barnes in 1976 when she couldn’t
of its 4,500 staff, at one point traded panies in jewellery and luxury Danish private equity firm Axcel, Partners were also advisers. find a safe place for new parents and
20 per cent above the 210 crowns goods,” said chairman Allan Leighton. children to play together.

Learn how to plan for the future you want


with a Self Invested Personal Pension

To register for free for this event visit:


www.rbs.co.uk/markets

This adver tisement contains numerous trade marks belonging to The Royal Bank of Scotland Group plc and other companies in the RBS Group. These trade marks include, but are not limited to, The Royal Bank of Scotland logo, The Royal Bank of Scotland and
RBS. If you are in doubt as to whether an item is a trade mark of The Royal Bank of Scotland Group plc or a member of the RBS Group, please contact us for clarifi cation at the registered offi ce address The Royal Bank of Scotland plc, Registered in Scotland No 90312.
Registered Offi ce: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authorityy. RBS
R is an authorised agent of The Royal Bank of Scotland plc N.V in cer tain jurisdictions.
20 News CITYA.M. 6 OCTOBER 2010

German carmakers speed ahead in popularity


decreases of 18.6 per cent and 12.9 per results for August than the sector median in terms of quality, reputa- tion. This will only continue while
cent in like-for-like sales, compared to average; with BMW reporting a three tion and general impression shows investment for the future remains
the same months last year. per cent rise in like-for-like sales com- where their strengths lie. When times more important than the latest trend.
With over 50 new models being pared to the same month last year. are hard it seems consumers trust in Stephan Shakespeare is founder and chief
unveiled at the Motor Show for the What is driving such resilience car manufacturer quality and reputa- executive of YouGov.
first time, manufacturers are still amongst “luxury” car brands?
attempting to capture a slice of an Ongoing data gathered from con- ANALYSIS l Automobile Trends
increasingly small market with inno- tributors to www.TellYouGov.com sug- 60 Impression

BRANDINDEX vation and novelty. But YouGov’s gest it is the quality, reliability and 50
Quality

STEPHAN SHAKESPEARE BrandIndex indicates that concerns


of quality, reputation and “impres-
brand recognition these German
manufacturers provide, that sets 40
Reputation

sion”, in terms of generally positive or them apart from competition.

W
HILE the flocks of motor negative perceptions, remain crucial This is confirmed by YouGov 30
enthusiasts descending on in understanding how UK consumers BrandIndex tracking, in which these
Paris this week for the 2010 relate to automobile brands. three brands consistently register 20
Motor Show may suggest Apparently bucking the industry’s among the highest overall “index” 10
otherwise, prospects are less than downward trend, German luxury car scores in the automobile sector. As
rosy for the automobile industry. makers Audi, BMW and Mercedes the graph indicates, a comparison of 0
During July and August there were have posted significantly better these manufacturers with the sector Audi BMW Mercedes Sector Median

Traffic rebound boosts BA UK TV exports grow to £1.3bn


despite tough trading conditions
by cabin crew and general malaise of The passenger figures were boosted by

AVIATION
BY EMMA SADOWSKI the business traveller. a 6.2 per cent climb in passengers travel-


The airline, which excluding last ling within Europe and the UK, and 6.9 MEDIA growing area of exports, jumped 32
FLAG-CARRIER British Airways (BA) month has reported consecutive per cent more passengers flying to its per cent.
reported a 1.3 per cent rise in air traf- monthly declines in traffic figures, African and Middle Eastern destinations. SALES of UK TV programmes on the Meanwhile, Google’s TV venture is
fic during September, mainly on the said that overall traffic in the year BA’s shares jumped 6.48 per cent international market soared almost expanding, with the internet giant
back of a return in business travel, ending in September was still down on the positive news yesterday and 10 per cent to £1.3bn last year, buoyed signing new content partnership
boosting its shares to a new two-year by 7.4 per cent. closed at 245.60p, marking the high- by the success abroad of hit shows deals with media and internet compa-
high yesterday. However, BA flew three million pas- est close for the airline in two years. like the BBC’s Top Gear, according to nies, including NBC Universal’s CNBC,
BA said that its premium traffic – sengers globally during the month, Meanwhile, 82.4 per cent of BA’s the UK TV Exports Survey. Time Warner’s HBO and Amazon.
business and first-class passengers – marking a 4.3 per cent rise on the flights were full last month, improv- Sales to the US alone reached NBC Universal will bring access to
rose by 4.3 per cent, signalling an end same period last year when 2.9m peo- ing on last year when 81.5 per cent of £485m – a three per cent hike. Sales in financial news television CNBC, while
to the impact of the summer’s strikes ple flew with the airline. seats on its flights were booked. Australia and New Zealand, the fastest HBO will also provide programming.
CITYA.M. 6 OCTOBER 2010 News 21

CITY MOVES | WHO’S SWITCHING JOBS Edited by Marion Dakers in association with

Evolution Securities of fundamental credit strategy at markets for the Middle East. He also
KPMG The investment bank has appointed Deutsche Bank, and has also spent time ran the company’s City and West End
The financial services group has hired Iain Gary Jenkins as its new head of fixed at Barclays Capital as global head of investment teams.
McLaughlin as its new UK head of recruitment. income. Jenkins joined Evo in January credit research.
He joins from GlaxoSmithKline, where he spent 2009, and has since worked to develop Navigant Consulting
six years working in human resources, most the firm’s fixed income product. Evo Cushman & Wakefield The management consultancy has
recently with a focus on the emerging markets. said he was instrumental in the compa- The property consultant has hired John appointed Jim Evans to its London
He has also worked in HR for the banking and ny being awarded the title of fixed Mundy as a partner in its City invest- financial services practice. Evans has
IT sectors. McLaughlin’s appointment is part income agency broker of the year by ment team. He has more than 20 years’ taken up the role of managing director
of an expansion of KPMG’s London offices, to Credit Magazine in 2009 and 2010. experience in investment agency, valua- in the recently established regulatory
which the firm expects to add around 3,000 Jenkins himself has been ranked num- tions, capital raising and asset manage- strategy, risk and compliance solutions
members of staff over the next three years. ber one Extel analyst / team leader on ment. Mundy joins from DTZ, where he team. He has previously worked at
four occasions. He was previously head was most recently the head of capital Ernst & Young, Deloitte and KPMG.

To appear in CITYMOVES please email your career


updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com

AIA warns
Edmund Tse, 72, who
spent more than four
decades at AIG, was
recently named a non-
executive director of
AIA ahead of the

on risks as it
planned IPO.
Picture: REUTERS

launches IPO
INSURANCE

AIA at as much as $30.5bn.


BY HARRY BANKS “The terminated Prudential
transaction also adversely impact-
AIA Group, which aims to raise ed and may continue to adversely
about $15bn (£9.4bn) through a impact agency recruitment and
Hong Kong listing, flagged a series new business production by our
of business risks including the col- agents,” AIA said in its prospectus.
lapsed bid from Prudential as it “We cannot assure you that our
launched the share offering yester- business and prospects will not be
day. materially and adversely affected
AIA, the Asian life insurance by the terminated Prudential trans-
business of American International action.”
Group, also said in the preliminary AIA, an Asia-focused insurer, is
prospectus filed to the Hong Kong selling 5.86bn secondary shares at
Stock exchange that it would not an indicative price range of ANALYSIS l AIG
pay a dividend before 2011. HK$18.38 (£1.50) to HK$19.68 per 42 p
39.90
5 Oct
AIG is planning to sell 48.6 per share.
cent stake in AIA to raise up to
$14.86bn, a document shows. The
net proceeds will be used to repay
Despite the red flags, there was a
burst of demand for the shares yes-
terday, with demand equalling the 38
SAVE up to 20%* on *Kid
stay an s
d eat
financial aid AIG received from the
US government.
number of shares on offer. The
interest is likely to be because AIG
Autumn / Winter Rates FREE
AIG revived AIA’s IPO after has announced the on-again, off- 34
Prudential cut its takeover offer for again deal for so long that investors
AIA to $30.4bn from $35.5bn. are already familiar with the com- Small Hotel Group of the Year 2010-2011
In contrast, the IPO would value pany. 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

BEST OF THE BROKERS


ANALYSIS l National Grid ANALYSIS l ASOS 1,178.00 ANALYSIS l AXA
560.50 5 Oct 50.75
570 p 1,200 p 52 p 5 Oct
5 Oct
550 1,100 50

530
1,000 48

510
900 48 Whether you’re looking for a school holiday break, a city stopover or
490 a Spa weekend, we can help. Book now and take advantage of our
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep Autumn/Winter Advance purchase offers.

NATIONAL GRID ASOS AXA Book at least 7 days Book at least 28 days Book a 3 night stay
in advance and in advance and in advance and
JP Morgan Cazenove considers the Goldman Sachs revises its price targets AXA has been a significant laggard this
Ofgem decision on the framework for for online retailer, ASOS, and gives the year, particularly against its closest SAVE 10%* SAVE 15%* SAVE 20%*
the next transmission and gas distribu- stock a “conviction buy” rating. The bro- peers, says Bank of America Merrill
tion to be a friendly move for National ker increases its six-month price target Lynch. It has underperformed Aviva,
Grid’s shareholders. The broker gives the from 1,350p to 1,700p on five-year sec- Allianz and ZFS, which the broker views Visit apexhotels.co.uk
energy giant a “neutral” rating and says ond-stage revenue growth assumption as unusual, but retains a “buy” rating. and book online using our
the new finance director may offer a of 10 per cent. The broker believes that Slowdown in growth and no new strate-
New Lowest Rate Calendar
fresh look at the financing challenges
facing National Grid given the potential
ASOS is well-positioned within a fast-
growing industry and as it continues to
gic news have made AXA’s stock lose its
historical lustre, says the broker which T 0845 365 0000

size of its UK capital expenditure pro- deliver strong sales, there is scope for believes, however, that these issues are
gramme. further share price outperformance. factored into its €19 price. * Discount off the Best Flexible rate. Offers subject to availablity.
Terms and conditions apply. Kids stay and eat free at selected Apex hotels.

To appear in Best of the Brokers email your research to [email protected] Apex Hotels  

 
   

Markets&Investment
22 CITYA.M. 6 OCTOBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .290.00 +3.30 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .519.00 +4.50 574.50 376.30 JPMorgan Emerg Mkts . . . . . . . .601.00 +7.00 601.00 443.00 SABMiller . . . . . . . . . . . . . . . . .2020.50 +25.50 2090.00 1499.00
3i Infrastructure . . . . . . . . . . . . . 114.10 +0.30 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .548.50 +2.50 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .247.60 –4.40 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .285.10 +3.50 285.10 208.20
A.B. Foods . . . . . . . . . . . . . . . .1048.00 +12.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1499.00* +32.00 1529.00 656.00 Kazakhmys . . . . . . . . . . . . . . . .1427.00* +4.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .389.60 +0.30 397.00 307.60
Aberdeen Asset Man . . . . . . . . . .166.20 +3.20 166.20 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .527.00 +8.00 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .149.30* +3.20 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1443.00 –2.00 1459.00 1056.00
Admiral. . . . . . . . . . . . . . . . . . .1664.00 –7.00 1695.00 1003.00 Dana Petroleum . . . . . . . . . . . .1800.00 +2.00 1817.00 968.50 Kingfisher . . . . . . . . . . . . . . . . . .230.50 –2.40 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1166.00 +2.00 1191.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .124.50 +1.30 137.30 103.10 Davis Service . . . . . . . . . . . . . . .407.90* +3.70 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .134.90* +0.20 164.60 114.60
Afren . . . . . . . . . . . . . . . . . . . . . 116.40 +1.90 117.30 76.50 Debenhams . . . . . . . . . . . . . . . . .66.80 –0.10 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .348.10* –1.90 372.30 157.30 Scot. & Sthrn Energy. . . . . . . . .1130.00 +7.00 1206.00 1006.00
African Barr Gold . . . . . . . . . . . .616.00 +11.00 685.00 520.50 Derwent London . . . . . . . . . . . .1567.00* +18.00 1572.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .568.00* +8.00 570.00 416.70 Scottish Mortgage. . . . . . . . . . . .646.50 +6.50 648.00 475.00
Aggreko . . . . . . . . . . . . . . . . . .1571.00* +24.00 1639.00 664.50 Dexion Absolute . . . . . . . . . . . . .139.00 — 148.00 130.00 Land Securities . . . . . . . . . . . . . .663.00* +10.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .287.60* +6.70 389.90 244.00
Alliance Trust . . . . . . . . . . . . . . .337.50 +6.20 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . .1099.00* +7.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .104.50 +2.50 105.70 69.05 Serco . . . . . . . . . . . . . . . . . . . . . 611.50* +14.50 656.50 485.60
AMEC . . . . . . . . . . . . . . . . . . . . .998.50 — 1024.00 724.50 Dimension Data . . . . . . . . . . . . . 119.60 — 125.50 62.40 Lloyds Banking Gp . . . . . . . . . . . .75.67 +2.34 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1320.00 +13.00 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .400.80* +1.90 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .27.01 +0.68 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .129.70* +1.60 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .444.50 +3.60 456.00 348.00
Anglo American . . . . . . . . . . . .2641.50 +103.50 3015.50 1880.00 Domino’s Pizza . . . . . . . . . . . . . .469.20 +6.70 484.70 278.20 London Stk Exchange . . . . . . . . .678.00 +3.00 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1422.00* +17.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . .1269.00* +45.00 1276.00 734.00 Drax . . . . . . . . . . . . . . . . . . . . . .386.30* +3.60 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1723.00 +32.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .577.00 –2.50 700.50 525.50
Aquarius Platinum . . . . . . . . . . .345.60 +9.90 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .405.20 +12.30 438.40 305.00 Man . . . . . . . . . . . . . . . . . . . . . .227.10 +9.50 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .154.60 +0.60 156.00 103.00
ARM Holdings . . . . . . . . . . . . . . .400.00* –1.50 419.50 135.30 Easyjet . . . . . . . . . . . . . . . . . . . .386.90 +17.00 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .392.50 +2.30 412.70 321.90 Smiths . . . . . . . . . . . . . . . . . . .1240.00 +14.00 1253.00 867.50
Ashmore . . . . . . . . . . . . . . . . . . .348.60 +5.80 352.50 215.00 Edinburgh Inv Tst . . . . . . . . . . . .429.00 +7.30 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .302.00 +5.80 331.00 226.80 SOCO Intl . . . . . . . . . . . . . . . . . .444.00 +2.50 510.00 380.60
Astrazeneca . . . . . . . . . . . . . . .3242.50 +30.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .240.80 +2.80 251.00 142.90 Melrose . . . . . . . . . . . . . . . . . . .285.90 +10.20 286.30 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .738.50 +0.50 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . . 118.20 +1.20 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .970.50* +11.00 1002.00 822.50 Spectris . . . . . . . . . . . . . . . . . .1075.00 –9.00 1117.00 653.00
Autonomy Corp . . . . . . . . . . . .1852.00 +8.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .481.40 +14.60 481.40 358.50 Michael Page Intl. . . . . . . . . . . . .470.10* +4.90 471.00 314.40 Spirax-Sarco Eng . . . . . . . . . . .1809.00 +6.00 1859.00 1050.00
Aveva . . . . . . . . . . . . . . . . . . . .1460.00 –1.00 1504.00 856.50 Eurasian Nat Res . . . . . . . . . . . .910.50* –4.00 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .379.30 –1.70 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .144.10 +2.50 145.70 84.55
Aviva . . . . . . . . . . . . . . . . . . . . .396.30* +3.40 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .597.00 –8.00 630.00 361.70 Millen & Copthorne . . . . . . . . . . .520.00* +2.00 547.00 321.40 Sports Direct Intl . . . . . . . . . . . . .145.90 +2.40 148.00 89.85
Babcock International . . . . . . . . .580.50 +10.50 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .682.50 +6.50 698.50 516.50 Misys . . . . . . . . . . . . . . . . . . . . .294.60 +6.60 295.80 193.80 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 +2.00 1190.00 616.00
BAE Systems . . . . . . . . . . . . . . .350.80 +8.30 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .314.50 –1.70 396.20 139.10 Mitchells & Butlers . . . . . . . . . . .293.50 +3.50 343.90 228.30 St James’s Place . . . . . . . . . . . . .284.00 –3.60 298.00 203.40
Balfour Beatty . . . . . . . . . . . . . . .271.60 +5.60 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .370.90 +8.90 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .192.80 +1.50 257.00 187.60 Stagecoach. . . . . . . . . . . . . . . . .182.40 +0.20 204.90 137.00
Barclays . . . . . . . . . . . . . . . . . . .308.80 +9.00 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .288.90 +4.40 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .533.00 +16.50 536.50 303.90 Standard Chartered . . . . . . . . . .1894.00* +46.00 1946.00 1366.50
Barratt Development . . . . . . . . . .100.20 +1.95 178.75 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1300.00 +34.00 1304.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .323.40 +3.70 325.80 265.00 Standard Life . . . . . . . . . . . . . . .228.30* +0.70 237.00 170.00
BBA Aviation . . . . . . . . . . . . . . .189.90* –0.10 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .251.40* –0.90 285.70 218.10 Morrison Wm . . . . . . . . . . . . . . .298.40* +1.90 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . .1225.00 –12.00 1312.00 499.00
Bellway. . . . . . . . . . . . . . . . . . . .598.50 +12.50 842.50 510.00 Genesis Emerging Mkts Fd . . . . .517.50 +3.00 520.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .909.50 +16.00 909.50 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .143.60 –3.40 153.80 106.60
Berkeley . . . . . . . . . . . . . . . . . . .836.50 –2.00 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .167.90 –1.00 174.30 100.40 National Express. . . . . . . . . . . . .239.00 –0.60 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .500.00 +10.00 503.00 341.40
BG . . . . . . . . . . . . . . . . . . . . . . 1167.00 +14.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1269.50* +20.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .560.50 +7.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2074.50 +48.00 2346.00 1618.50 Great Portland Estates . . . . . . . .353.70 +2.40 356.50 236.60 Next . . . . . . . . . . . . . . . . . . . . .2261.00 +30.00 2360.00 1726.00 Tate & Lyle . . . . . . . . . . . . . . . . .474.00 +5.60 509.00 388.00
BlackRock Mining . . . . . . . . . . . .649.00 +12.00 654.50 475.00 Greene King . . . . . . . . . . . . . . . .428.70 +13.60 484.00 372.50 Northumbrian Water . . . . . . . . . .332.90 –1.10 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .28.41 +0.20 46.34 24.29
BlueBay . . . . . . . . . . . . . . . . . . .348.00 +5.80 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .442.60 –5.40 562.50 346.00 Ocado Grp . . . . . . . . . . . . . . . . .132.20 +0.70 169.00 129.20 Telecity . . . . . . . . . . . . . . . . . . . .498.10 +0.10 546.00 311.30
Bluecrest Allblue GBP . . . . . . . . .169.00 +0.40 170.00 147.00 Halma . . . . . . . . . . . . . . . . . . . . .320.30 +1.70 323.90 215.90 Old Mutual . . . . . . . . . . . . . . . . .139.00 +1.70 142.50 95.30 Templeton Emrg Mkts . . . . . . . . .636.50 +2.50 641.50 453.00
Booker . . . . . . . . . . . . . . . . . . . . .49.67 –0.10 50.50 37.50 Hammerson . . . . . . . . . . . . . . . .401.70 +3.70 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .285.40 +6.40 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .431.25 +0.90 454.90 368.40
BP . . . . . . . . . . . . . . . . . . . . . . .431.50 +1.40 658.20 296.00 Hargreaves Lansdown . . . . . . . .461.50 +8.50 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .982.00 +14.50 1069.00 752.00 Thomas Cook . . . . . . . . . . . . . . .179.70* +6.70 277.20 167.50
Brit Insurance . . . . . . . . . . . . . .1030.00 — 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 118.60 +2.30 120.10 82.50 Pennon . . . . . . . . . . . . . . . . . . . .581.50* +1.50 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .854.00 +14.00 915.00 647.50
British Airways . . . . . . . . . . . . . .254.60 +15.50 255.80 172.40 Henderson . . . . . . . . . . . . . . . . .127.90 +2.60 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .394.00 +2.50 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .225.90 +9.10 313.90 189.20
British Amer. Tob . . . . . . . . . . .2367.50 +22.50 2439.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .312.00 +12.00 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1395.00* +5.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .399.70 –4.30 436.20 261.20
British Empire Tst . . . . . . . . . . . .477.10 +8.30 477.10 338.50 Hikma Pharma . . . . . . . . . . . . . .703.00* +9.00 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . . 1103.00* +20.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1301.00* +5.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .487.80 +11.40 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .348.60 — 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* — 775.00 550.50 UK Commercial Prop. . . . . . . . . . .80.00 +1.00 84.90 69.40
Britvic. . . . . . . . . . . . . . . . . . . . .475.10 –2.80 518.00 341.50 Hochschild Mining . . . . . . . . . . .452.40 +12.00 457.50 220.00 Premier Farnell . . . . . . . . . . . . . .274.00* +5.50 276.30 140.60 Ultra Electronics . . . . . . . . . . . .1740.00 +28.00 1774.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .239.90 +3.90 284.30 204.80 Home Retail . . . . . . . . . . . . . . . .207.90 +4.80 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1675.00 –14.00 1703.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .707.00 +1.00 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .459.10 +17.10 502.00 422.00 Provident Financial . . . . . . . . . . .822.00 +0.50 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1834.00 +10.00 2024.00 1662.00
BT . . . . . . . . . . . . . . . . . . . . . . .148.50 +2.70 151.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .665.50* +13.90 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .637.00 +1.50 665.00 475.70 United Utilities . . . . . . . . . . . . . .583.50 +5.50 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .758.00 +5.50 784.50 614.00 Hunting . . . . . . . . . . . . . . . . . . .655.50 +15.50 659.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .374.40* +4.20 382.70 231.70 Utd Business Media . . . . . . . . . .620.00* +4.00 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1014.00 –12.00 1065.00 495.50 ICAP . . . . . . . . . . . . . . . . . . . . . .444.30 +12.10 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .108.50 +0.70 179.10 103.50 Vedanta Resources . . . . . . . . . .2197.00 +9.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .56.90 +0.10 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .513.50* +13.00 532.00 291.00 Randgold Resources. . . . . . . . .6655.00 +195.00 6690.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1328.00 –2.00 1347.00 726.50
Cable & Wire Wwide . . . . . . . . . . .75.00 +1.55 94.80 60.05 Imagination Tech Gp . . . . . . . . . .384.70 +4.70 399.00 160.00 Reckitt Benckiser . . . . . . . . . . .3495.00 +20.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .161.00 +2.00 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .445.00 –4.30 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .786.00* +19.50 788.50 410.00 Reed Elsevier . . . . . . . . . . . . . . .544.50 +16.00 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1486.00 +33.00 1488.00 638.00
Caledonia Invs . . . . . . . . . . . . .1653.00 +16.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1903.00 +4.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .80.25* +0.10 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .780.00* –9.00 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .778.50* –6.50 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .316.80 +8.40 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1075.00* +5.00 1083.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1647.00 +33.00 1653.00 1172.00
Capital & Counties . . . . . . . . . . .134.10 +1.70 137.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .421.50 +9.30 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.00 +1.70 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .168.20 +1.70 217.80 160.50
Capital Shopping Centres . . . . . .384.00 +7.60 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .629.00* –26.00 831.00 528.50 Resolution . . . . . . . . . . . . . . . . .244.00* +1.00 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .473.30 +7.40 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .321.10* +7.00 361.90 271.00 Intercontl Hotels . . . . . . . . . . . . 1146.00 +19.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . . 311.80* +5.60 348.80 261.50
Carnival . . . . . . . . . . . . . . . . . .2558.00 +61.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .303.70 +4.70 307.20 233.50 Rightmove . . . . . . . . . . . . . . . . .745.50 +5.50 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1617.00 +16.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .338.80 –1.20 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1820.00 +21.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3792.00 +95.00 4104.00 2524.50 Wood Group (John). . . . . . . . . . .424.60 –3.30 443.50 279.60
Centamin Egypt . . . . . . . . . . . . .167.90 –2.20 194.40 98.00 Intl Personal Fin . . . . . . . . . . . . .268.50* –0.60 283.00 160.40 RIT Capital Partners . . . . . . . . .1142.00 +17.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .699.50 +3.00 744.00 521.00
Centrica . . . . . . . . . . . . . . . . . . .327.00* +5.10 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .397.50* +3.40 398.10 248.20 Rolls Royce . . . . . . . . . . . . . . . .600.00 +9.00 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1240.00* +31.00 1344.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .722.50 +22.00 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .307.20 +9.20 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1795.00 +29.00 1802.00 1101.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2995.00 +24.00 3711.00 2436.00 Investec . . . . . . . . . . . . . . . . . . .506.00 +7.30 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .49.08 +1.52 58.95 28.25
Close Bros . . . . . . . . . . . . . . . . .750.00 +6.00 803.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .59.25 +0.30 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1939.50 +23.00 2068.50 1621.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .229.50 +3.40 278.60 205.50 Jardine Lloyd Thompson. . . . . . .571.00* +3.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1882.00 +16.50 1997.50 1550.00
COLT Group . . . . . . . . . . . . . . . . 118.50 +0.40 144.20 107.70 Johnson Matthey . . . . . . . . . . .1780.00 +40.00 1814.00 1308.00 RSA Insurance . . . . . . . . . . . . . .132.20* –0.30 142.00 114.10 www.interactivedata.com

LEARN TO SPREAD BET


Book your place on one of our FREE seminars and receive £100 trading credit* when you open an account

0845 077 1184 Spread betting can result in losses that exceed your initial deposit.
finspreads.com/seminars100 *Termsholders
*10p offer available to new account and Conditions apply iPhone
for first 8 weeks. please is asee www.finspreads.com/seminars100
trademark forInc.details.
of Apple Inc. App Store is a service mark of Apple

FTSE hits a five month closing high, Economic stimulus hope


led by banks, miners and oil stocks boosts mood of investors
blue chips, adding 2.5 per cent, as the new 26-month peaks, the euro rose economy in a similar fashion.

THELONDON sector rallied from falls last week on


fresh European debt concerns.
The pace of growth in the US servic-
against the dollar and after Japan
unexpectedly lowered interest rates,
raising expectations of further boosts
THENEW YORK Crude oil hit a five-month peak
near $83 a barrel and gold hit anoth-
er record high at $1,341.20 an ounce.
REPORT es sector accelerated last month more
quickly than economists had expect-
ed and hiring also picked up, accord-
for other major economies.
It was a similar story with energy
stocks, which put on 0.8 per cent, as
REPORT The materials sector led the S&P 500,
gaining 2.8 per cent, with mining
company Freeport-McMoRan Copper

S
TRONGER banking and com- ing to a report from the Institute for crude prices rose, with BG Group, up & Gold jumping 4.6 per cent to $91.21.

U
modity shares helped drive Supply Management. 1.3 per cent, the best performing inte- S stocks rallied to nearly a The Dow Jones industrial average
Britain’s top share index to a “The market always appears to be grated oil stock. five-month high yesterday on gained 193.45 points, or 1.80 per cent,
more than five-month closing waiting for the next bit of data, but Anglo American led the miners growing conviction that cen- to 10,944.72. The Standard & Poor’s
high yesterday, after encouraging US the picture that is building here, for higher, rising 4.1 per cent, followed tral banks will do even more 500 Index rose 23.72 points, or 2.09
economic data gave a boost to mar- me, is one where the recovery by Antofagasta, 3.7 per cent firmer. to bolster struggling economies per cent, to 1,160.75. The Nasdaq
kets. remains on track, albeit it has had its Kazakhmys did not fare so well, worldwide. Composite Index jumped 55.31
The FTSE 100 closed 79.79 points, fair share of wobbles,” said Paul adding only 0.3 per cent, after its The Bank of Japan lit the fuse points, or 2.36 per cent, to 2,399.83.
or 1.4 per cent, higher at 5,635.76, its Kavanagh, a partner at broker Killik & chairman Vladimir Kim sold around overnight when it unexpectedly cut About 8.77bn shares traded on the
highest closing level since 26 April, Co. an 11 per cent stake in the company rates closer to zero. This move came New York Stock Exchange, the
after a 0.7 per cent fall on Monday. Strong demand was also seen for to the Kazakh National Welfare Fund, as markets increasingly believe the American Stock Exchange and the
Banks were the best performing miners, up 2.7 per cent, as copper hit reducing his holding to 27.9 per cent. US Federal Reserve will stimulate its Nasdaq.
CITYA.M. 6 OCTOBER 2010 Investment | Fund Management 23

Buy City offices for steady income


Pick your property The Walbrook is one
of the few large unlet
fund carefully for office buildings in the
Square Mile.
great rental yields,
Picture:
writes Juliet Samuel Micha Theiner
/City A.M.

C
ONFIDENCE in UK property has
plummeted over recent months. The
recent commercial property confi-
dence survey conducted by Lloyds
showed that almost half of property profes-
sionals now think that property prices will
stay flat over the next six months (up from
36 per cent in May). So is now the time to
ditch commercial property and sit tight?
The overall news does not look good. Of
those expecting price movements in the
Lloyds survey, most now expect falls rather
than rises. Tellingly, despite anticipating a
general fall, a larger percentage surveyed
think that their own portfolios will rise.
This should be a warning signal: fund man-
agers can often be overly optimistic about
their own picks. that supply is shrinking and so they’re will- likelihood of capital growth than is being erty. The key is to stick to areas with high
Even so, there are clearly some good ing to pay the higher rates to get hold of priced in by yields at the moment. So even demand such as central London and to
opportunities for investment in certain seg- space. And banks wants to avoid lending on if yields fall, values should go up. While make sure you are targeting income – there
ments of the market, especially for those speculation, so the majority of new stuff this might not hold for properties in the is no point pricing an empty building out
hunting income. But Frogmore managing coming onto the market is pre-let.” north, many of which are let by the govern- of the rental market just to keep its head-
director Paul White says that investors Even at the lower end of this yield range, ment, it should hold for the south. line capital value high, as some pension
must remember to be picky: “There are two commercial property far outperforms bond Either way, investors looking for income funds are reportedly doing. But if a proper-
commercial property markets in the UK: yields (see chart) and is on level pegging in the short-term could do far worse than ty fund can offer steady income, it is a solid
central London and the rest of the country. with many dividend-generating shares. As a to put money into prime commercial prop- option in uncertain times.
Outside London, the market has still not result, Carter says that many cash-rich pen-
found a consistent level and there remains sion funds are diving into the market, ANALYSIS l Historic relationship between UK bond and property yields
a considerable overhang of properties to pointing to Scottish Widows’ recent pur-
14 %

Sources: CBRE and Bank of England


come out of the banks.” White expects chase of 75 King William Street for around
more distressed stock to come to market in £60bn as an example. 12 Ten-year nominal par yield Property Yields
the coming months, depressing prices. Due to the unusually wide spread
But while the next few quarters are between bond and property yields, howev-
10
unlikely to see good capital growth, for the er, Chesterton Humberts urges caution in
right property, funds can expect good its October commercial property report. It
rental yields to deliver a steady stream of expects property yields to drop closer to 8
income. Caisson Investment Managers’ their average distance from bond yields,
David Carter says that prime yields now predicting a yield close to 4.85 per cent by 6
range between 5 per cent and 10 per cent, 2014. But the firm expects this decline to be
with prime retail at the bottom of this balanced by an increase in capital growth: 4
range and City offices at the top: “There is a “Stable growth and serious deficit reduc-
dearth of space in the City. At current take- tion should decrease the risk premium on 2
up rates, there’s only one year’s worth of UK commercial property,” its analysts
grade-A office space left, which is why rents write, “narrowing the spread to its long run
are being driven up so quickly. People know average.” In other words, there is a greater Apr 00 Apr 01 Apr 02 Apr 03 Apr 04 Apr 05 Apr 06 Apr 07 Apr 08 Apr 09 Apr 10

Track records
ticular wealth managers and fund selec- to June 2010, June 2008 to June 2009 and “fund managers also tend to perform
tors, to exclude funds without a record of June 2007 to June 2008, they said: “We find slightly better and they have a better
at least three years. The rationale is no evidence that funds with long track chance to beat their peers at the beginning
straightforward: looking at past perform- records enjoy better performance or incur of their tenure”. While the research didn’t
ance allows investors to sift out the less less risk than new funds.” The empirical investigate this, it proposes that there

no guarantee
successful funds and gives them some data suggests that newly launched funds might be two factors at play. First, a stellar
basis on which to project the fund’s post higher average total returns and lower first-year performance is virtually essential
returns. As BestInvest’s Adrian Lowcock risk data. This means that institutional to generate significant money inflows, and
stresses, you want to know that the man- investors may miss out on several years of by extension, continued success. Second,
ager you are investing in has a track record good performance if they exclude new managers have strong incentives and pres-
that is not just based on luck. funds from their portfolio. sure to outperform during the first couple
Past performance is no guide to But while clear-cut, it may be misguided,
according to new research from Lipper, the
But Crispin Lace, senior investment con-
sultant at Mercer, says that the larger insti-
of years of their fund’s existence.
But while a fund might outperform in
future success, says Jessica Mead data provider. Lipper researchers Dunny
Moonesawmy and Juan Manuel Vicente
tutional investors such as sovereign wealth
funds, pension funds and large charities
its first year of life, there is no guarantee
that it will continue to do so. Investors are
Casadevall say that excluding newly do not necessarily screen based on number still looking for active fund managers that

T
HERE is nothing institutional launched funds or funds with short track of years’ performance. Indeed, he points can consistently deliver over a sustained
investors dislike more than uncer- records might not be best. Having com- out that Mercer has worked with some period of time. There is no evidence yetto
tainty since it robs them of their pared the performance of funds less than a fund managers to launch a new product. suggest that funds which enjoy a success-
ability to plan for the future. This year old and those with a track record for In terms of manager performance, ful first year will necessarily become stars
has led some institutional investors, in par- more than three years between June 2009 Moonesawmy and Casadevall found that rather than dogs.

FUND MANAGEMENT NEWS


BY JESSICA MEAD
RECORD 2010 EXPECTED FOR SOME FUNDS OFFSHORE EM FUNDS OUTDO UK OEICS THREE FIDELITY FUND RATINGS ON HOLD
A number of fund groups are on track for UK-domiciled emerging market funds are fac- Morningstar has placed three Fidelity funds’
record-setting years, according to flow data ing tough competition from offshore rivals ratings under review following the departure of
provider EPFR Global. Emerging markets, US after the latter was included in the Investment fund managers Brenda Reed and Ilario di Bon.
and global bond funds as well as global emerg- Management Association (IMA) performance The funds are: Fidelity Funds – Global Focus,
ing market equity funds are likely to experi- league tables in the first quarter of this year. Fidelity Global Focus and Fidelity Funds –
ence record inflows in 2010. Against a Analysis of Lipper performance data by HSBC Global Opportunities, which were rated superi-
backdrop of soaring equity markets and rising Global Asset Management and Baring Asset or. Morningstar’s Mark Laidlaw said the ratings
risk appetite, September saw Japan Equity Management shows that over the past three all rested substantially on the presence of the
Funds snap an 11-week outflow streak, Latin years to August 2010 at least eight of the top previous fund managers: “Incoming manager
America equity funds extend their longest 10 funds specialising in a particular major Amit Lodha [Fidelity Funds – Global Focus and
winning run since the fourth quarter of 2009 emerging market have been domiciled off- Fidelity Global Focus] has not run a diversified
and US equity funds enjoy their best period shore. HSBC AM said this has levelled the play- offering before and we’ll need to meet with him
Certain funds to see record jump in inflows Picture: GETTY since late May and early June. ing field and given investors more choice. to determine our conviction in his capabilities.”
24 Investment | Foreign Exchange CITYA.M. 6 OCTOBER 2010

AUSSIE WILL
HAVE TO WAIT
TO HIT PARITY
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT

Y
ESTERDAY’S decision by the Reserve Bank
of Australia (RBA) to keep rates steady
surprised the currency markets and sent
the Aussie tumbling in reaction to the
news. Prior to the release traders had been rela-
tively certain (75 per cent) that rates would
increase by 25 basis points.
In fact, over the past week the buying pressure
on the Aussie had been so strong that markets
were acting like it was a foregone conclusion that
Aussie-US dollar would reach parity before year-
end. While the prospect of parity still remains a
serious possibility, I believe its chances have been
greatly diminished by the RBA’s latest actions. It
hinted at an additional hike in November in its
statement: “If economic conditions evolve as the
Board currently expects, it is likely that higher
interest rates will be required, at some point, to Emerging market policymakers are struggling to hold back the flood of capital Picture: ALAMY
ensure that inflation remains consistent with the
medium-term target.”

Don’t go with the flow


But its decision is by no means assured and
likely to be governed by several key releases over
the near term including tonight’s employment
data report as well as the third quarter CPI
inflation release on 27 October. Recent economic
data has been respectable but hardly robust. For
example, yesterday’s retail sales rose only 0.3 per
cent versus 0.5 per cent forecast. Furthermore,
the housing market – which is the true driver of Seek fiscally prudent According to Societe Generale’s Kit
Juckes, central banks face three choices: let
towards long-term appreciation in emerg-
ing market FX, it is likely to be a white-
RBA monetary policy – has been relatively weak
for some time. Building approvals contracted for commodity currencies, the currency appreciate, impose some
form of capital control, or import US mon-
knuckle ride for traders in these
currencies over the next couple of months
the fourth month out of the past five, suggesting
that RBA’s program of consistent monetary writes Jessica Mead etary policies and accept domestic asset
inflation. Some in the developing world
as the developed world loosens monetary
policy further and the emerging markets
tightening is beginning to take its toll. have opted for the second option in order try to impose further capital controls.
Therefore, all talk of Aussie going to parity ver- to keep their currencies deliberately weak Those who want to avoid this volatility

W
sus the greenback should ease for the time being HEN Brazil’s finance minister and competitive compared to China with should look towards Norway, Canada and
as traders adjust their expectations of Australian Guido Mantega last week its still-inflexible yuan policy. Australia. All three benefit from greater fis-
short-term rates. It remains the highest-yielding warned of an international cur- John Hardy, FX consultant at Saxo Bank, cal prudence, a move towards monetary
currency in the G10 but yesterday’s surprising rency war, he said what many says: “As long as countries are seen as policy normalisation and exposure to com-
announcement should slow its ascent with the other emerging market policymakers were unable to effectively intervene – Brazil, modity demand. These will provide steady
US$0.9750 level becoming a key resistance point privately thinking. Competitive devalua- Korea and Mexico are already taking meas- returns without being directly affected by
in the pair. For now it appears that any move tions have become a hot topic of discussion ures – and outright safe haven-seeking fails policy intervention.
towards parity can occur only if we see another and there are growing calls for an interna- to develop, the flows are going where the
broad sell-off in the greenback caused by further tional accord to help coordinate a rebal- yields are. Those point to the emerging ANALYSIS l Net private capital flows to
concerns of a US economic slowdown. ancing of the global economy. markets with their higher yields as well as emerging markets in 2010
850
Boris Schlossberg and Kathy Lien are direc- According to the Institute of Australia, which has both the yield and the $bn
tors of currency research at GFT. Read commen- International Finance (IIF), the low interest leveraged exposure to emerging market
800 net private capital
tary at www.GFTUK.com/commentary or e-mail rate environment in the mature strength via its export industries.”
[email protected]. economies is driving money into emerging The IIF adds that recent renewed flows to emerging markets
750

Source: IIF
markets in search of higher yields and upward pressure on emerging market FX
strong economic growth. “The persistent rates needs to be seen in context. Many of
strength in private capital inflows raises these weakened in the second quarter so 700
new headaches for emerging market poli- the recent appreciation is merely a natural
cy makers. For one thing, flows are apt to rebound. Moreover, on a purchasing power
650
lead to upward pressure on emerging mar- parity basis, many emerging market cur-
ket real exchange rates vis-à-vis most rencies are undervalued.
mature market currencies,” the IIF says. While the signs are clearly pointing 600
Oct 2009 Jan 2010 Apr 2010 Oct 2010

YOU’RE NO STRANGER TO SPREAD BETS. Get started at


gftuk.com.
AND NEITHER ARE WE.

We’re GFT and we want to be your next spread bet firm.


From award-winning software to 24/7 service—not to mention some of the most competitive pricing out there —GFT has you covered.
CFDs, spot forex and spread bets are leveraged products and may not be suitable for everyone as it is possible to lose more than the funds you deposit.
Please ensure that you fully understand the risks involved. GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority.

SPREAD BETS | CFDs | FOREX / gftuk.com / free phone 0800 358 0864
CD03UK.113.073010
CITYA.M. 6 OCTOBER 2010 Investment | Foreign Exchange 25

THE
Fundamentals TIPSTER
NOW MAY BE

fail to offer a THE TIME T0


BUY PESOS

D
ESPITE widespread dollar weakness for
the US greenback against the Mexican

clear picture Peso, the pair has not done so badly in


the last month and now sits on a good
support level offering a possible buying oppor-
tunity. Capital CFDs quotes a price of
peso12.5500-peso12.5700 for dollar-peso.
The Bank of Japan announced yesterday
that it will extend its quantitative easing (QE)
Technical analysis provides a surer outlook scheme and the central bank cut interest
rates and the dollar-yen bounced in trading.
for euro-dollar traders, says Donata Huggins Investors will be thinking ahead to Friday’s
non-farm payrolls figures for a clearer picture
on the Fed’s next move. A US QE expansion

E
VERY day there seems to be further a logical picture. could see the dollar’s strengthening undone.
bad news from the Eurozone’s The charts certainly offer patterns for Cantor Index offers Daily dollar-yen
periphery. Only yesterday Moody's euro-dollar: for instance, despite the ¥8342–¥8345.
rating agency warned it might euro’s strength it is struggling to find The Reserve Bank of Australia left interest
downgrade Irish bonds. Yet the euro con- buying momentum to carry it above rates unchanged at 4.5 per cent yesterday
tinues to rally against the dollar, reach- $1.3800. Yet it has established a support and didn’t seem overly hawkish regarding
ing $1.3833 yesterday at 6.45pm. The level at $1.3635. Every time the euro higher interest rates in the future. This sent
market just does not seem to care what drops, the bounce-back carries it slightly Australian dollar-dollar crashing 120 basis
trouble the Eurozone stirs up. All eyes are higher, maintaining the upward trend. points in a matter of hours to the 15-day
fixed on the US and the dollar. “The mar- This channel pattern emerges on the 240- exponential moving average at Au$0.9643
ket is like a typical man, it can only focus minute time frame. But Raghee Horner before settling around Au$0.960. The charts
on one thing at a time – and at the of Autochartist warns that this rally has look bearish and a dip to Au$0.9470 and
moment that’s further US quantitative the potential to retrace itself, suggesting Au$0.9350 is a possibility. Spread Co offers a
easing (QE2)” says Michael Hewson of that: “If the $1.3808 high holds, look for a With so much uncertainty surrounding The markets wait for spread of Au$0.9594–Au$0.9596.
CMC Markets. possible retracement on the daily chart the prospect of QE2, technical analysis Ben Bernanke’s QE2 Sterling has suffered after talk of further
The market certainly expects QE2 and down to the 23.6 per cent Fibonacci level could be the surer bet in the near-term – decision QE. It looked to be soaring away against the
the Federal Reserve has all its indicators at $1.3535.” at least until Friday’s non-farm payrolls euro only a few weeks ago but suffered a
pointing in that direction. The anticipa- figures shed a little more light on the state Picture: REUTERS rough September, with sterling-euro retreat-
tion in the lead to the announcement QE2 UNCERTAINTY of the US economy. ing to the well-established support level. But
seems to have lodged euro-dollar into a But beware, Hewson warns that doing sterling could bounce from here. Capital
range. We may have to wait until the precisely the opposite to consensus can ANALYSIS l 2008 Euro - US dollar reaction to QE Spreads offers a price of €1.1500-€1.1504 on
Fed’s meeting on 3 November – the earli- often offer the golden ticket: “Just look 1.5 $ sterling-euro.
est occasion that it could realistically be what happened in Australia on Monday: The threat of further US QE is adding to
announced. Should QE2 occur, analysts 75 per cent of analysts predicted a hike in 1.45 Euro - US dollar the dollar exodus and the Swiss franc contin-
predict a serious plunge for the dollar. interest rates but the Reserve Bank of ues to be a beneficiary. But there has been a
1.4
The chart below demonstrates what hap- Australia were kept on hold with no inten- degree of profit taking and the question is
pened last time QE was announced. Many tion of raising them.” Mellor expresses the 1.35 whether a push to fresh lows can be sus-
expect a retracement of that dive. same concern: “Nobody really knows tained. The pair looks overbought but with
But in the meantime, how should the whether the Fed are actually going to go 1.3 traders continuing to seek out safe havens
trader select a position? Neil Mellor of through with QE2. I’ve heard people sug- and markets far from normal, the traditional
The Bank of New York Mellon says traders gesting that the Fed are entertaining the 1.25 rules don’t necessarily apply. The current IG
tend to turn to technical analysis when idea to weaken the dollar so they don’t Source: Societe Generale Index price on dollar-Swiss franc is
the economic fundamentals do not offer have to go actually through with it.” 1/10/2008 1/11/2008 1/12/2008 SFr0.9695-SFr0.9697. Donata Huggins

FOREX ANALYST PICKS


FOREX STRATEGIST FOREX STRATEGIST FOREX STRATEGIST
ILYA SPIVAK JOHN KICKLIGHTER JOEL KRUGER

My pick: Short euro-US dollar (pending market moves) My pick: Short euro-US dollar below $1.36 pending market moves My pick: Buy US dollar-Swiss franc at SFr0.9885
Expertise: Global macro Expertise: Fundamental and technical analysis with risk management Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months Average time frame of trades: 1 day-1 week Average time frame of trades: 1 week-6 months
Euro-US dollar has put in a bearish dark cloud cover candlestick for- My long euro-Japanese yen breakout scenario from last week was met Setbacks have finally stalled out ahead of the critical record lows
mation following a test of resistance at the $1.38 figure, hinting and I took a very small position in recognition of the volatility potential from 2008 by SFr0.9645 with the market finding a bottom for now in
that a turn lower may be ahead. Confirmation is required on a break on the Bank of Japan and European Central Bank rate decisions. On a the 0.9700s ahead of the latest minor bounce. Short and medium-
below the sharply upward, slowing trend line now at $1.3687. I look different tack, I think the euro’s run against the dollar is reaching an term studies are looking stretched and longer-term cyclical studies
for a daily close below here to sell, initially targeting the $1.33 fig- extreme on a speculative versus fundamental perspective. I will wait for warn of a major bottom. This sets up the potential for a weekly rever-
ure. Alternatively, a daily close above the 4 October high at $1.3811 confirmation of a break below $1.36 for the channel give and look for sal, with a break and close back above SFr0.9880 to confirm bias and
would relieve bearish pressure and open the door for further gains. fundamental confirmation. likely accelerate gains. Target SFr1.0500 with a stop at SFr0.9585.
City Focus
26 CITYA.M. 6 OCTOBER 2010

| Law

FSA will flex its muscles over bonuses


The new City pay code is almost
here, and much hangs on how
harsh the regulator decides to be
Looking big and
tough matters

Picture: GETTY

MARK LEVINE
MISHCON DE REYA

C
ITY bonus rounds are always an
interesting time, but this year’s
promises to be more fascinating
than most. This is because it is the
first time we will see the impact of the
new version of the Financial Services
Authority (FSA) Remuneration Code. The
first version of the code, which was intro-
duced earlier this year, applied to 26 of
the largest banks, building societies and
broker dealers in the UK.
But the new version will be far more senior managers and risk takers whose should also retain the ability to make to the new pay structures and embrace
wideranging, and is expected to cover bonuses are more than 33 per cent of (downward) adjustments to unvested the theory that these changes are needed
over 2,500 FSA authorised firms, includ- their total remuneration and whose total individual awards and to awards that for the long term prosperity of the indus-
ing hedge funds. We’ll see very soon what remuneration is more than £500,000. In have vested but which the individual has try. As interesting as that, though, will be
the new code will look like – consultation respect of non-code staff, the FSA propos- to repay. the FSA’s behaviour. It is determined to
on the proposals will come to a close on 8 es to issue guidance explaining that the Deferred bonuses and payment in take a hard line, even if regulators else-
October. The new rules will come into firm should give consideration to the shares were being used by the banks where do not. Many will watch with
effect on 1 January 2011, but will apply remuneration principles that will apply before the crisis but they apparently did interest just how much it dares to flex its
retrospectively to remuneration paid on to code staff. little to avert excessive risk taking in the muscles in dealing with non-compliance.
or after that date for services performed Secondly, it deals with bonuses. The past. However, it will be interesting to see [email protected]
in 2010. code does not include any specific whether, absent another crisis, the banks
So what can we expect in the code? requirements on the amount that can be are willing to please the FSA and alienate
Firstly, it sets out both general require- paid to staff in bonuses. But it will their staff in future years by aggressively The code says that a minimum of 50 per cent
ments in respect of firms’ remuneration require that a minimum of 50 per cent of using the power to claw back bonuses
policies, which apply to all employees, as the code staff’s bonuses are paid in which most individuals will still view as of a bonus is in shares, and between 40 and
well as specific principles which apply to shares (or the equivalent) with between rewards for past performance.
the remuneration of those individuals 40 per cent and 60 per cent deferred for Ultimately, much will depend on 60 per cent is be deferred by up to five years
that the FSA categorises as “code staff” – between three and five years. Firms whether the banks are truly committed

only transactions in securities listed on expensive class action litigation there

Class action hopes domestic exchanges, and domestic trans-


actions in other securities, to which
Section 10(b) applies.”
The Morrison decision drastically reins
in the extraterritorial reach of US securi-
ties laws. Indeed, in barring so called F-
altogether by simply not selling their
shares on American exchanges. But it is
unclear whether the decision will survive
financial reform and political pressure
which has generally favoured extending
the reach of the US securities laws beyond

quashed by ruling cubed investors from pursuing claims


under US law, it also bars these investors
from taking advantage of the US class
action litigation mechanism.
This decision could also have a material
impact on foreign investors currently
seeking redress in the US courts. For
American shores.
Indeed, it is possible that Morrison will
be overruled or eroded in the near future.
The ruling was explicitly based on the
absence of language in Section 10(b)
extending its reach to foreign investors
and stock exchanges. Accordingly, a con-
Shareholders from Northern Rock and others will no instance in January 2010 a jury verdict
was entered against Vivendi, finding the
gressional amendment to the statute
would render the court's opinion moot.
longer be able to pursue cases in the American courts company and several of its officers and
directors guilty of misleading sharehold-
And the financial reform bill winding its
way through Congress now contains a
ers. If French investors, or any Vivendi proposal to extend the extraterritorial
investors outside the US, purchased their reach of the Securities and Exchange
Australian Bank puts an end to a long- shares on exchanges located outside the Commission and the Department of
standing set of rules that often allowed United States, then under Morrison those Justice. This could erode the Court's new
foreign investors who purchased shares of investors are barred from pursuing transactional rule significantly by giving
a foreign company on a foreign claims in the US courts. Up to two-thirds regulators the power to enforce US securi-
exchange – so called F-cubed investors – to of Vivendi’s investors live in France. ties law against foreign companies. Other
pursue claims of securities fraud under As well as the cases mentioned above, a recently proposed legislation, such as
US law in the American courts. Indeed, F- number of securities fraud claims pend- that providing for aiding and abetting lia-
cubed investors have frequently partici- ing against foreign companies in bility in securities fraud suits, or lan-
pated as class members in securities fraud American courts, including claims guage adopting the conduct and effects
WILL STUTE claims filed in the United States. against Porsche, EADS, Alstom, BP, and test that Morrison overruled, could also
FAEGRE & BENSON The High Court created a bright-line Toyota are now unlikely to proceed. Of extend the reach of the statutory fraud
test, rather than diving into the particu- course, all this is good news for non- remedy beyond US shores.

S
INCE the financial crisis of 2008, lars of the defendant’s conduct or the American companies facing potential For now, Morrison reduces the litiga-
shareholders in several companies nationality of the parties, holding that investor fraud class action claims as the tion risk and expense for non-American
including RBS, Northern Rock, Section 10(b) of the 1934 Securities pool of potential class members, and thus companies associated with being a pub-
Lloyds, BP and Porsche have pur- Exchange Act does not give rise to a pri- the size of any potential claim for dam- licly traded company – particularly if the
sued the possibility of suing for fraud in vate cause of action for securities that are ages, is reduced by the application of company does not sell shares on the US
the American courts, where class actions traded outside of the United States. The Morrison. exchanges. Whether the decision spurs
are far easier. But a recent Supreme Court Court stated: “[T]hose purchase-and-sale Under Morrison companies located out- EU countries to adopt parts of the
decision could scupper these plans. transactions are the objects of the side of the US can seemingly avoid the US American-style class action system
The verdict in Morrison v National statute’s solicitude... And it is in our view securities laws and the risk of facing remains to be seen.
Lifestyle
27

| Motoring WORDS BY
RYAN BORROFF

School of
speed
Aston Martin’s advanced driving
W
E’VE done rather well in this col-
umn, test driving Aston Martin
sports cars for CityA.M. The City
of course is a key market for course puts our man through
these cars, which is why I’ve been fortu-
nate enough to get them. But the thing is, his paces – at a scary 175mph
the more familiar I became with them the
more I realised that UK speed restrictions
in combination with my own inadequa- and so I brake... hard. The car decelerates Ryan in the wet,
cies as a driver have resulted in a discon- without wavering, and we round the above, and putting
nect. banked bend at a far more reasonable his foot down on
The truth is that when you get behind speed, just 80mph. I am not sure who is a bend, right.
the wheel of an Aston you can easily get more relieved, myself or Andy. (I suspect
caught up in the euphoric whirlwind of me.) It’s clear that under such heavy brak-
engine symphony and awesome power ing the car remained far more composed
beneath your driving shoes, and get ideas than I did. Speeding at such a bend and
above your station. The car makes you feel not braking earlier involves an element of
like James Bond, when really you’re more trust in one’ s instructor... To say the very
of an Inspector Clouseau. As wonderful as least.
these cars are I haven’t been able to fully But then the chaps in the passenger seat
experience their superb high-performance are certainly very good. A crew of Aston and how to use the circuit’s road signs as important lesson on why you shouldn't
capabilities. Martin’s own instructors, they take us markers. It’s an exercise in how to be more floor it coming out of a turning in poor
And it would seem I am not alone. through a number of different driving sce- efficient and precise at speed. The result is weather unless you’ve got the traction
Aston Martin has created its Performance narios in most of the cars in the range. that I improve the more times I go around. control system on.
Driving Course – a course that is designed Specifically, we’re driving the DB9, DBS, Normally with my hands on a car this Back on the high speed circuit I get to
to teach drivers how to better appreciate Rapide and V8 N420 Vantage coupes. exciting, the emphasis is less on honing drive a DBS at very high speed and at
the capabilities of their cars with the aim It’s on the hill route that you really get a my driving skills, and more about making 175mph it’s much less noisy than one
of making them safer and better drivers – chance to let rip. I drive the four-seat my hair fly back, so this is definitely a few would imagine. It’s a pleasure to finally
for people like me. Although to be fair Rapide and the V8 Vantage here and steps in the right direction. experience an Aston at such a speed and
most – but not all – of the people that get though the Rapide is astonishingly good, Next up and I’m spinning out on a wet discover that it’s actually pretty tiring,
to experience such a driving day actually it’s the N420 that really shines. I simply skid pan in a DB9. It’s an exercise in learn- with so much visual information flashing
own their own Aston Martin. can’t get enough of it and like a spoiled ing how effective the Dynamic Stability past so quickly. I find I have a new found
Which is how I find myself in a V8 child beg to go around again once I’ve Control system is and how important it is respect for racing drivers – no wonder
Vantage hurtling into a banked bend at completed my designated three circuits. on a powerful rear-wheel drive car like they always look so knackered on the
160mph on the Mile Straight at Millbrook My instructor doesn’t just teach me about this. With the system back on the car podium. My driving has undoubtedly
Proving Ground. My instructor Andy tells gearing, speed and braking, he also points pirouettes in a perfect circle despite the improved. Now I just need to save up for
me to hold on, hold on, hold on... okay now, out how to read the incline and camber gallons of water on the tarmac. It’s an an Aston.

CAR TALK

JAZZ GOES HYBRID ONE FOR THE LADIES INFINITI AND BEYOND
The best seller in the B-segment – the Honda Jazz – is now the first to This is the Twingo Miss Sixty, the result of yet another tie-up OK so it's only a sketch, but Nissan’s premium brand Infiniti has shown
go hybrid. The hybrid version of the Jazz has the same 1.3 litre i-VTEC between a car manufacturer and a fashion label, and according to this drawing of a new high-end electric car for launch in 2013. The
engine as the Insight hybrid and is able to run on the electric motor Renault it's the first Twingo to be designed purely for women. Infiniti EV will be a stylish and compact five-seat luxury car offering
alone. This will mean the cars emits only 104 g/km of CO2 and has Available in Bohemian Pink or Pearlescent black, the car has a “rock zero emissions and will share much of its technology with the Nissan
fuel economy of up to 64.2 miles per gallon. Road tax is free in year ‘n’ roll interior” of pink and black and includes a pink-rimmed Leaf. It will also be one of the world's first luxury electric cars when it
one (it will cost just £20 a year after that) and there's no congestion tachometer and speedometer and a pink-stitched leather steering arrives. The sketch was revealed at the opening of Infiniti's new brand
charge either. wheel. How very glam. centre and showroom at 77 Piccadilly.
28 Lifestyle | TV& Games CITYA.M. 6 OCTOBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK


TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News 6.30pm Strictly Come Dancing 6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
6.55pm Party Political – It Takes Two 6.55pm Party Political 7pm Channel 4 News 7pm Five News at 7
Broadcast 7pm Games Today Broadcast 7.55pm 4thought.tv 7.30pm Highland Emergency;
7pm The One Show 8pm MasterChef 7pm Emmerdale 8pm Food: What Goes in Your Five News Update
7.30pm Bang Goes the Theory 9pm Secret Iraq: Part two of 8pm Midsomer Murders: A Basket? 8pm Cowboy Builders; Five
8pm Waterloo Road two. How the insurgents turned music prodigy witnesses a 9pm CHOICE Grand Designs News at 9
9pm CHOICE The Apprentice against al-Qaeda. Last in the woman drowning. With James 10pm Rude Tube 9pm NCIS:
10pm BBC News series. Fox and Richard Fleeshman. 11.05pm 3 Minute Wonder 10pm CHOICE Law & Order:
10.25pm Regional News 10pm The Apprentice: You’re 10pm ITV News at Ten 11.10pm Ramsay’s Best Criminal Intent: Goren goes
10.35pm National Lottery Fired! New series. Interview 10.30pm London News Restaurant undercover to take down a THE APPRENTICE
10.45pm Reggie Perrin: with the show’s freshly rejected 10.35pm FILM The 12.15am Music on 4: On Track high-profile drug dealer. BBC1, 9PM
candidate. 12.30am The Album Chart Show Alan Sugar challenges the new batch
11.15pm FILM Hope Springs: Bodyguard: Romantic thriller,
Spotlight 12.45am 4Play: Badly 10.55pm Law & Order:
2002; National Lottery Update 10.30pm Newsnight; Weather with Kevin Costner. 1992. 11.55pm Poker: of entrepreneurial hopefuls to create
Drawn Boy 1am The Crush 1.25am
12.45am Sign Zone: Dragons’ Den 11.20pm Today at Conference 12.55am The Zone; ITV The Astronomer’s Sun 1.35am Hung 12.50am SuperCasino their own range of sausages at short
1.45am Country Tracks 2.40am 11.50pm Wonders of the Solar News Headlines 2.05am Studio 60 on the Sunset 4.05am Police Interceptors 4.55am notice and sell them at local markets.
Bang Goes the Theory 3.10am System 2.55am FILM In the Name of the Strip 2.50am FILM She Creature: Animal Rescue Squad 5.10am
Watchdog 4.10am Britain’s Empty 12.50am BBC News Father: 1993. 5.10am-5.30am ITV 2001. 4.20am Hill Street Blues Michaela’s Wild Challenge 5.35am-
Homes 4.40am-6am BBC News 4am-6am BBC Learning Zone Nightscreen 5.10am-5.55am Countdown 6am Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 11pm Criminal Minds 12am 12.05am RuPaul’s Drag Race 3.50am Raging Planet 4.40am
SATELLITE & CABLE

6pm Live Darts 12am 6.40pm Polo 7.40pm Riders CSI: Crime Scene Investigation 1.05am Scrubs 2am RuPaul’s Unsolved History 5.30am-6am
Johnstone’s Paint Trophy Club. Magazine show for 2am Medium 3am Diet on the Drag Race 2.45am What How Does That Work?
Football 1.30am Prizefighter equestrian fans. 7.45pm US Dancefloor 4.40am The Jerry About Brian 3.25am Life
Boxing 3am 15 Years of the Tour Golf 8.45pm Golf Club Springer Show 5.30am-6am Unexpected 4.10am The Hills DISCOVERY HOME &
European Cup 4am FIFA 8.50pm Sailing 9.50pm Yacht Home Shopping 4.30am-6am Switched HEALTH
Futbol Mundial 4.30am Total Club 10.05pm Olympic 7pm Deliver Me 8pm The 28 GRAND DESIGNS
Rugby 5am-6am Transworld Magazine 10.30pm Eurogoals BBC THREE HISTORY Stone Teenager: Shocking CHANNEL 4, 9PM
Sport Flash 10.45pm-12.30am 7pm The Real Hustle: Celebrity 7pm How the Earth Was Made Story 9pm A&E 10pm Kevin McCloud follows a couple who
International Football Scammers 7.30pm The Real 8pm Mega Movers 9pm Ax Hospital Sydney 11pm The discovered that a barn they were about
SKY SPORTS 2 Hustle Undercover 8pm Don’t Men. A weak cable risks lives Trauma Team 12am A&E 1am to restore is one of the smallest surviv-
7pm Live Johnstone’s Paint ESPN Tell the Bride 9pm FILM The at Browning. 10pm Sliced Hospital Sydney 2am The ing medieval guildhalls in the country.
Trophy Football 9.30pm 7pm Live NBA Basketball Guardian 2006. 11.15pm 11pm Mega Disasters 12am Ax Trauma Team 3am The 28
Prizefighter Boxing 11pm ICC 9.30pm NHL Ice Hockey Family Guy 12am One Non Men 1am Vampire Princess Stone Teenager: Shocking
Awards 2010 12am European 10.30pm 30 for 30 11.30pm Blonde Down Under 12.30am 2am How the Earth Was Made Story 4am A Baby Story 5am-
Tour Weekly 12.30am Inside Premier League World 12am Ideal 1am Him and Her 1.30am 3am The Aztec Massacre 6am Bringing Home Baby
the PGA Tour 1am Champions Poker 1am Press Pass 2010 The Real Hustle: Celebrity 4am-5am Disappearing Britain
Tour Golf 2am Golf 3am-4am 1.30am ESPN Kicks Extra Scammers 2am The Real SKY1
ICC Awards 2010 1.45am ESPN Serie A Kicks Hustle Undercover 2.30am DISCOVERY 8pm Emergency Animal
2am 30 for 30 3am NHL Ice One Non Blonde Down Under 8pm How Do They Do It? Rescue 9pm Madonna: Sticky
SKY SPORTS 3 Hockey 4am-5.30am 3am Ideal 3.30am Him and 8.30pm How It’s Made 9pm and Sweet – Live from Buenos
7pm 15 Years of the European Premiership Rugby Union Her 4am-5am Don’t Tell the The End of the World Cult Aires 11.30pm Ross Kemp on
Cup 8pm Champions Tour Golf Bride 10pm Trawler Wars 11pm Is It Gangs 12.30am Road Wars LAW & ORDER: CRIMINAL INTENT
9pm Golf 10pm 15 Years of LIVING Possible? 12am Bear Grylls: 2.20am Street Wars 3.10am CHANNEL FIVE, 10PM
the European Cup 11pm 7pm Baggage 8pm Psychic E4 Born Survivor 1am Deadliest Bite Size Brainiac 3.30am Lost Under suspension pending a psychiatric
Golfing World 12am F3 Sally: On the Road 9pm Ghost 7pm Hollyoaks 7.30pm Friends Catch 2am Rory McGrath’s 4.20am Vroom Vroom evaluation, Goren places his life and
Euroseries 1am Max Power Whisperer 10pm CSI: Crime 9pm Ugly Betty 10pm FILM Best of British Engineering 5.10am-6am Sell Me the career in jeopardy working undercover
2am-4am Poker Million Scene Investigation Ferris Bueller’s Day Off 1986. 3am Weaponology Answer to take down a high-profile drug-dealer.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
22 39 30 17 20 10 
14 9 4
4 11  
16 21
Place the numbers from 1 to 9 in each empty cell so that each 25 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 7 23 5
     
above or to the left of it. 6 22
You can only use the digits 1-9 17 8
    and you must not use the
18 38 21
11 29      
same digit twice in a block. 15
   The same digit may occur 15 13 
19 13 27
  more than once in a row or
column, but it must be in a
3
18
7
11
6
 
45
  separate block. 
24 35
    7 9 13
 

  ACROSS DOWN
1 Apostle who joined Saint 1 Drinking tube (5)
 
   WORDWHEEL R U
Jude in Persia (5)
4 Forbidden (5)
7 Geological period
2
3
4
Miraculous food (5)
Requires (5)
Narrow to a
Using only the letters in the Wordwheel, you have of time (3)
    ten minutes to find as many words as possible,
D T 8 Wash out soap (5) 5
point (5)
Pulse vegetables (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 9 Tartan (5)
10 Mature female deer (3)
6 In a peculiar
manner (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
L C 11 Enfolds (5)
14 Corroded (5)
12
13
Informer (3)

SOLUTIONS
Writing
KAKURO is at least one nine-letter word in the wheel.
E S 17 Supply sparingly and with implement (3)
restricted quantities (5) 15 Large nation
QUICK CROSSWORD 7 8 3 9 3 7 8 9 20 Famous London hotel (5) (inits) (3)
6 7 2 / , ' ( %
3 5 1 6 2 1 6 8 SUDOKU          23 Group which released 16 As well (3)
2 4 9 1 1 3
$ 2 2 5 $ 1 * (          the album Meltdown 17 Wise men (5)
9 6 5 7 8 1 5 6
& $ 5 , ( 6 6 $
7 9 5 6 1 2 3
         in 2004 (3) 18 Adult insect (5)
. 7 ( $ 5 1 ( 5
6 2 / ( 6 / $ ' 6 4 1 3 9 6 7 8
         24 Pasture (5) 19 Sense of good
        
/
3 5 ,
/ '
1 7 (
2 *
5
/ ( 6
5 4
1 3 2
8 9 7 2 1
8 6 4 9 7
WORDWHEEL         
25 Historical object (5)
26 Stand for a golf ball (3) 20
style (5)
Cut finely (5)
$ 0 $ = ( ' 5 3         
0 7 8 1 ( $ 6 ( 2 1 7 3 2 1 The nine-letter word 27 Weight equivalent 21 Country house (5)
5 8 7 9 3 2 1 4         
% 5 ( $ . 6 6 1
was GUTTERING         
to 14 pounds (5) 22 Popular Mexican
6 6 . , 6 0 ( 7 4 2 5 8 8 3 7 9
28 Excitement (5) palm-like plant (5)
CITYA.M. 6 OCTOBER 2010 Sport 29

‘England’s greatest Tests lie ahead’


In the second part of our
exclusive interview,
Andrew Strauss looks
ahead to a defining winter.
By Frank Dalleres

E
NGLAND captain Andrew
Strauss believes the current side
has the potential to be even bet-
ter than the iconic Ashes win-
ners of 2005. Strauss, who scored two
centuries in that landmark series,
will lead the class of 2010 in Australia
this winter as they look to retain the
urn. And he says that it is how they
fare in that series, and the World Cup
early next year, that will determine
whether their legacy eclipses that of
their illustrious predecessors.
“I think this has the most potential
of any England team I’ve played in,”
Strauss told City A.M. “The 2005 side
was a very strong side – a lot of play-
ers at the peak of their powers. But
that side never got on a pitch again
after that series. I think this team’s
got potential to continue improving
and there’s quite a lot of youth in our
side so I think we can be a lot better
than we are at the moment.”
Strauss has already tasted Ashes vic-
tory as captain, skippering the team
to glory in a hard-fought series last
year on home soil. Indeed, his tenure, Strauss led England
and that of coach Andy Flower, has to success in the
coincided with something of a boom Ashes last year (left).
in English cricket and they will travel
to the southern hemisphere as Picture: REUTERS
favourites to beat Australia again. Not
that he takes any notice. get harder than that – and a World England one-day table, while Swann series, but Strauss is confident he has one guy who is struggling and make
“I’m proud in what the team has Cup – an event that England have per- leads the rankings overall, and the the strength in depth to compensate. sure the rest of us do enough to keep
achieved over the last couple of years, formed poorly in in the past – we spinner – a huge Twitter fan – is not winning consistently.”
certainly. I’m not proud of being a want to make amends for that. And at hiding the fact from his colleagues. RETRIBUTION Seven of the 16-man squad for this
favourite going into the Ashes the end of this winter we’ll be in a “Graeme Swann is at the top so you “It’s not a major concern to me,” he winter’s series, which starts next
because it means nothing – it really much better place to measure exactly can imagine he has been letting says. “The game of cricket always month, are veterans of the 2006-7
does mean nothing,” he says. where we are as a side.” everyone know that. I’m sure he will throws up a batsman who’s strug- Ashes, and could be forgiven for shud-
“I’m proud of the way the team has be tweeting about it at some stage,” gling for form at one stage or anoth- dering at the thought of returning to
developed, I’m proud of the way indi- BLUNT INSTRUMENTS he adds. “There is a bit of banter er; you never get a situation where all the scene of that 5-0 whitewash.
vidual players have come through. Measuring exactly where they are is about it but we also recognise that of your batsmen are at the top of But Strauss says: “I don’t think it’ll
Graeme Swann only played his first precisely why Strauss is here at Lord’s cricket is such a form game. One day their form. So I’m very comfortable be on their minds. This tour is not ret-
Test match in December ‘08, the likes to talk to City A.M. He is endorsing the you’ll be top of the rankings, the next that they are world-class internation- ribution for what happened last time
of Ian Bell have really stood up to the FTI MVP rankings, a points-based sys- you’ll be right down the bottom.” al players – their records say it and or anything like that. There were
plate, and we’ve seen the likes of tem that factors in every run scored, Which brings us on to Kevin they’ll come through. some lessons learned. Most of the
Jimmy Anderson and Stuart Broad wicket taken and catch held and is Pietersen and Alastair Cook, two play- “I think we’ve got to prepare our- team weren’t involved in it.
develop incredibly. billed as a more accurate measure of ers who have endured disappointing selves that over the course of the win- “Ultimately, we’re holding the
“But the greatest tests lie ahead. performance than the blunt instru- seasons. Having two of your premier ter one or two of our players will have Ashes at the moment and we still
There’s no doubt about it. An Ashes ments of batting and bowling aver- batsmen struggling for form is far a tough time. The key is to minimise want to be holding the Ashes in six
series away from home – it doesn’t ages. Happily, Strauss sits atop of the from ideal preparation for an Ashes the number and for us to absorb the months’ time.”

Cipriani is a Rebels rebel Irish legend SPORT | IN BRIEF

after missing team meet Moss Keane Alex out for three weeks
FOOTBALL: Chelsea defender Alex is
facing a three-week lay-off after sus-
Laxman clinches thrilling win
CRICKET: Australia captain Ricky
Ponting admitted his side were outplayed

dies, aged 62 taining a thigh injury in the final stages


of Sunday’s game with Arsenal.
The centre back picked up the injury
in the first Test against India after going
down to a one-wicket defeat in a tense
finale in Mohali.
after scoring a spectacular 85th-minute VVS Laxman struck a superb unbeat-

RUGBY UNION management at the moment.


BY JON COUCH “There’s an issue with the visa com- free-kick which clinched a 2-0 win. en 73 as India limped to the victory tar-
ing out of the English side of things. IRISH rugby is mourning the death of He has withdrawn from Brazil’s forth- get of 216 for a 1-0 series lead.
DANNY CIPRIANI has angered his That’s not to say it probably couldn’t legendary forward Moss Keane, who coming internationals with Iran and “It’s one of best and most exciting Test
new Melbourne Rebels bosses already have been done a couple of months died yesterday at the age of 62. Ukraine and is set to miss Chelsea’s visits matches I’ve played in,” said Ponting.
by failing to turn up for their pre-sea- ago. The Kerry lock was regarded as to Aston Villa and Spartak Moscow on “They outplayed us today, we weren’t
son team conference. “We’re disappointed he’s not here. I one of Irish rugby’s great characters 16 and 19 October. quite good enough to get across the line.”
The former Wasps and England fly- won’t get into that at this stage. We’ve after making the first of his 51 caps
half has told the club he is having been told he’s not far off and will be for Ireland in France in 1974. Mallya in Rangers talks Murray safely through in China
problems obtaining a visa, but Rebels here next week.” He went on to tour New Zealand FOOTBALL: Indian billionaire Vijay Mallya TENNIS: Andy Murray cruised into the
coach Rod Macqueen says he is disap- England outcast Cipriani, 22, with the British and Irish Lions three is in talks to buy a share of Queens Park second round of the China Open yester-
pointed by his absence. announced he would join the Rebels years later and became only the third Rangers – a move which could finally day after a comfortable 6-2, 6-3 victory
The Rebels squad assembled in from Wasps back in February. player, behind Willie John McBride bring an end to Flavio Briatore and Bernie over French qualifier Paul-Henri Mathieu
Melbourne to announce the team’s He has recently been keeping in and Fergus Slattery to win 50 Irish Ecclestone’s involvement with the club. in Beijing.
naming-rights sponsor before prepar- shape by training with various foot- caps in 1984. He was also part of the Mallya, who owns Kingfisher Airlines “I thought I did well,” said second seed
ing for the start of the Super Rugby ball teams, including Premier League Munster side which famously beat and the Force India Formula One team, Murray. “I started well and didn’t give him
season with a four-day team session. sides Tottenham and Fulham. the All Blacks in 1977. was linked with a similar move two years any chances except for a couple of break
Macqueen said: “Danny’s telling us He also spent time in the United Keane had been battling cancer for ago, but is expected to be successful this points on my serve in the second set.”
he’s had problems with his visa. States with Major League Soccer fran- some time. time in ousting Briatore and Ecclestone, He now takes on Spain’s Albert
We’re working together with his chise Colorado Rapids. who want to sever ties with the club. Montanes in round two.
30 Sport CITYA.M. 6 OCTOBER 2010

Results
FOOTBALL
JOHNSTONE'S PAINT TROPHY NORTHERN
SECTION SECOND ROUND
Olly deserves a shot at the No1 job
Bury..................................(0) 0 Shrewsbury.....................(0) 0
Att: 1,944
Bury win 6-5 on penalties.
Carlisle...........................(0) 2 Port Vale .............................(1) 2
Chester 76 Norwood 42 (og)
Price 81 M Richards 64
Att: 2,273
Carlisle win 4-3 on penalties.
Hartlepool ...................(0) 1 Bradford.............................(0) 0
McSweeney 69 Att: 1,728
Huddersfld...................(3) 3 Peterboro ..........................(0) 2
Carey 6 Mclean 51 FORMER RYDER CUP CAPTAIN
Pilkington 12, 24 Little 87
Att: 2,904
Macclesfield...............(2) 2 Crewe ...................................(2) 4
SAM TORRANCE

J
Ada 13 (og), 30 (og) Daniel 4 (og) OSE Maria Olazabal’s admission
Bell 29 (pen) that he would relish the opportu-
Artell 48
Att: 1,103 Grant 59
nity of leading the European
team in Medinah in 2012 will
SOUTHERN SECTION SECOND ROUND
have certainly come as a welcome
Barnet.............................(0) 1 Southend ............................(1) 3
Marshall 79 Paterson 22, 55 boost for the Ryder Cup committee,
Att: 1,356 Soares 85 who would surely have had him as
Bristol Rovers ...........(0) 1 Aldershot...........................(0) 0 frontrunner in any case.
Hoskins 90 Att: 4,050 But this is by no means a closed
Cheltenham................(0) 0 Plymouth ............................(1) 2 book.
MacLean 10
Att: 1,597 Noone 46
No captain has retained the job
Colchester...................(0) 0 Wycombe...........................(0) 2 since Bernard Gallacher led Europe to
Betsy 75 victory at the third time of asking in
Att: 2,379 Davies 82 1995 and Colin Montgomerie’s deci-
Hereford........................(0) 0 Exeter....................................(1) 3 sion to stand down after leading the
Nardiello 12 (pen) team to glory at Celtic Manor has set
O'Flynn 53
Att: 1,286 Duffy 90
the ball rolling for a whole new selec-
Leyton Orient ............(0) 0 Brentford...........................(0) 0 tion process with several big names in
Att: 1,152 the running to succeed him. Olazabal is a popular member of the European team. Picture: ACTION IMAGES
Brentford win 5-4 on penalties. Olly, naturally, is many people’s
Milton Keynes Dons(1) 1 Charlton..............................(0) 2 No1 pick. He has a proud playing I just hope that his health stands Like Olazabal, Darren Clarke has McGinley, also have bags of experi-
Chadwick 2 Abbott 53 record in the Ryder Cup and is well up to allow him to play enough on huge Ryder Cup pedigree but while ence and are more than capable of
Att: 3,773 Wagstaff 85
Swindon ........................(2) 2 Torquay...............................(0) 0 respected by the players. the Tour to help him keep that close- it’s not too early for him to get the stepping into the breach and leading
Ball 10 Who can forget his rousing speech ness that you need with the players. job, he, I’m sure, will be setting his the side.
Pericard 45 Att: 3,625 as vice-captain to Nick Faldo at But while Olly will start as many sights on boarding the plane to But these two have plenty of time
BLUE SQUARE BET PREMIER Valhalla two years ago, and his late people’s favourite, the Ryder Cup Medinah in a playing capacity. on their side and it is probably more
Hayes & Yeading ......(1) 2 Cambridge Utd...............(0) 0 call-up to assist Monty at Celtic Manor committee do have a very healthy Darren’s co-vice captains at Celtic likely that either will take the reins
Histon..............................(2) 2 Southport ..........................(1) 1 was clearly a popular move. selection dilemma on their hands. Manor, Thomas Bjorn and Paul for Gleneagles in 2014.
Kidderminster..........(0) 2 Gateshead..........................(1) 1
Luton ...............................(0) 1 Crawley Town.................(0) 2
Mansfield......................(1) 2 AFC Wimbledon.............(3) 5
Newport County .....(2) 3 Eastbourne Borough..(1) 3
Rushden & D...............(0) 2 Darlington..........................(1) 1
Tamworth.....................(1) 2 Barrow .................................(1) 2
Wrexham......................(0) 0 Fleetwood Town...........(0) 0
York..................................(0) 0 Kettering ...........................(0) 1
COMMONWEALTH GAMES
I’ve never been so nervous, claims G-Mac
GYMNASTICS — Men’s Artistic Team Competition Final: 1

Australia 259.050, 2 England 256.750, 3 Canada 248.500, 5 GOLF the US Open at Pebble Beach in June. with Hunter Mahan, which ultimate- “I hoped I wasn’t going to be need-
Wales 240.450. The Northern Irishman also won ly proved decisive in handing Europe ed. I was hoping my caddie would
BY JON COUCH
CYCLING — Men, 1000m Time Trial Final: 1 S Sunderland the Wales Open at Celtic Manor and a 14½-13½ victory. give me the nod [that the side had
(Aus) 1min 1.411secs, 2 M Tisin (Mkd) 1:2.768, 3 E Dawkins WIN, lose or draw, Graeme McDowell is now many people’s favourite to be “I have never been that nervous won].
(NZ) 1:2.777, 8 C Skinner (Sco) 1:5.095, 10 Philip Lavery
(NIrl) 1:8.985, 13 A Armstrong (NIrl) 1:11.659. would still have walked away from named BBC Sports Personality of the before,” reflected the man affection- “I imagined winning and losing in
Women, 500m Time Trial Final: 1 A Meares (Aus) Celtic Manor on Monday celebrating Year in December. ately known as G-Mac. “It was the the same breath. That’s just the way
33.758secs, 2 K Mcculloch (Aus) 34.780, 3 B James (Wal) the greatest year of his life. Yet McDowell claims nothing most difficult nine holes of golf of my golf is – there are good times and
35.236, 5 J Davis (Sco) 36.416, 7 A Blyth (Eng) 36.807, 8 C It was the year the 31-year-old burst comes close to the nerves he felt life – it made the US Open back nine bad times, great shots and bad shots.
Joiner (Sco) 37.539, 9 W Houvenaghel (NIrl) 38.289, 12 H
Wilson (NIrl) 40.189. into the world’s top 20 for the first when walking down the back nine in feel like playing with my dad at Royal That is what makes this game so
SHOOTING — Men, Pairs 10m Air Rifle Final: 1 India time with a maiden Major victory in the final Ryder Cup singles match Portrush. great.”
1193pts, 2 England 1174 (J Huckle & K Parr), 3 Bangladesh
1173.

Pool stars Tancock


Pairs 50m Pistol Final: 1 Singapore 1094pts, 2 India 1087, 3
Trinidad and Tobago 1081, 5 J Huckle (Eng), K Parr (Eng)
England 1073.
Women, Pairs 25m Pistol Final: 1 India 1156pts, 2 Australia
1146, 3 England (G Geikie & J Lydall) 1122.
SWIMMING — Men, 200m Freestyle Final: 1 R Renwick

and Halsall start


(Sco) 1min 47.880secs, 2 K Monk (Aus) 1:47.900, 3 T Fraser-
Holmes (Aus) 1:48.220, 5 R Davenport (Eng) 1:48.600, 7 R
Bale (Eng) 1:48.730, 8 D Carry (Sco) 1:49.190 5.
50m Backstroke Final: 1 L Tancock (Eng)24.620secs, 2 H
Stoeckel (Aus)25.080, 3 A Delaney (Aus)25.210, 5 M
Loughran (Wal) 25.580.

English gold rush


Women, Butterfly Final 50m: 1 F Halsall (Eng) 26.240secs, 2
M Katherine Guehrer (Aus) 26.270, 3 E Seebohm (Aus)
26.290, 5 E Gandy (Eng) 26.800, 6 J Lowe (Wal) 27.150.
Breaststroke, Final 50m: 1 L Pickett (Aus) 30.840secs, 2 L
Jones (Aus) 31.100, 3 K Haywood (Eng) 31.170, 5 R Achieng
Ajulu-Bushell (Eng) 31.560, 7 K Johnstone (Sco) 32.190.
CRICKET
FIRST ONE DAY INTERNATIONAL: Bangladesh v New

Zealand (Mirpur); Bangladesh 228 (Shakib Al Hasan 58) v COMMONWEALTH GAMES Tancock, who also has 100m back-
New Zealand 200-8 (B B B B McCullum 61, Shakib Al stroke aspirations, set a new Games
Hasan 4-41). Bangladesh beat New Zealand by 9 runs. BY FRANK DALLERES
record of 24.62 seconds as he comfort-
First Test Match: Australia v India (Mohali); Australia 428 SWIMMERS Liam Tancock and Fran ably won over the shorter distance.
(S R Watson 126, T D Paine 92, R T Ponting 71, Z Khan 5-94)
and 192 (S R Watson 56) v India 405 (S R Tendulkar 98, S K Halsall secured England’s first gold “It’s a great start to the meet for us,
Raina 86, R Dravid 77, V Sehwag 59, M G Johnson 5-64) and medals of the Commonwealth Games a couple of golds,” said the Devon
216-9 (V V S Laxman 73no, B W Hilfenhaus 4-57). India on a day of further success in the pool swimmer. “It felt pretty good but it
beat Australia by one wicket. in Delhi. didn’t feel amazing. I gave it my best,
World champion Tancock won the though, and stroked on through to
TODAY’S DIARY men’s 50m backstroke after Halsall the win.”
Johnstone’s Paint Trophy Northern Section Second had upset the odds to snatch the Halsall just pipped Australian
Round women’s 50m butterfly. world champion Marieke Guehrer in
Burton Albion v Rotherham (7.30) ...................................................................... England’s Kate Haywood won a race in which the top three were
Sheff Wed v Chesterfield (7.15)............................................................................
bronze in the 50m breastroke, while separated by just 0.05 seconds.
COMMONWEALTH GAMES Robbie Renwick claimed a first gold “When I saw I’d won I thought,
2010 Commonwealth Games (Delhi, India). for Scotland in the 200m freestyle. ‘That was cheeky’,” said the 20-year-
Away from the pool, England’s old. “I enjoy being the underdog and
Terrence Bosson took silver in the when there are people better than me
SPORTS EDITOR JON COUCH 60kg Greco-Roman wrestling, losing to take down, that’s incentive to take
email [email protected] Tancock (top) and Halsall struck gold in the pool. Picture: ACTION IMAGES, GETTY the final to India’s Ravinder Singh. it one step further.”
Tenacity
Teenaac and
endur
endurance
ur can pay
dividends.
d
de

Congratulations,
Congratulations, Monty.
Monty.

www.aberdeen-asset.com/sponsorship
www
w..abe
.aberdeen-asset.com/sponsorship
Issued and approved by Aberdeen Asset Managers Limited, 10 Queen’s Terr
e ace, Aberdeen AB10 1YG.
Authorised and regulated by the Financial Services Authority.
Sport
32 CITYA.M. 6 OCTOBER 2010

IT’S ALL GOING


SWIMMINGLY IN DELHI
HALSALL LEADS GOLD
RUSH IN THE POOL: P30

Olly’s our
Tottenham at man for
loggerheads Medinah,
says Monty
with Coe over
Olympic track


GOLF
BY JON COUCH
COLIN MONTGOMERIE has given Jose
Maria Olazabal the ultimate accolade
in his bid to succeed him as European
Ryder Cup captain, insisting: ‘I’m sure
he’ll do a better job than me”.
away from discussions about moving The Scot stood down as skipper

FOOTBALL
BY FRANK DALLERES into the Olympic stadium because after leading the side to a thrilling
they were told they would have to 14½-13½ victory over the Americans
TOTTENHAM are on collision course keep the facility. at Celtic Manor on Monday.
with Lord Coe over the Olympic And their plans for a new ground Now Olazabal, who was drafted in
Stadium after it emerged yesterday next to current home White Hart at the last minute to fill in as one of
their bid to move into the arena does Lane were specifically drawn up with Monty’s vice-captains, is favourite to
not include keeping the running the closeness of the crowd to the take the team to Medinah in 2010 –
track. pitch in mind – a factor a running provided he recovers sufficiently
Coe, a key figure in bringing the track would severely impede. from the rheumatism from which he
2012 Games to London and chairman Tottenham and AEG submitted has been suffering.
of the Organising Committee, has their bid on Thursday, the cut-off “I would love to do it,” said the
insisted that preserving the stadium’s point for interested parties, as a back- Spaniard, who has played in seven
ability to host athletics is “non-nego- up option in case their plans to build Ryder Cups and vice-captained in the
tiable”. a new stadium fall through. last two. “It all depends on my physi-
But AEG, the entertainment com- A spokesperson for the Olympic cal situation, but it’s much better
pany which runs the O2 and has sub- Park Legacy Company, which will than it was a few months ago.”
mitted a joint bid with Tottenham, decide the fate of the 80,000-seater Montgomerie said: “I hope Jose
revealed they would scrap the track if stadium, told City A.M. that it was “not Maria will be well enough to be the
they move into the stadium in compulsory” for bidders to include a next captain. It was between him and
Stratford. provision to retain the track. me for the captaincy this time and in
Tim Leiweke, AEG’s president and But Coe has always pledged, as part two years’ time he’ll be 46, just a year
chairman, said: “I think it is a crime if of London’s legacy commitments for younger than I am now. The passion
you sacrifice having a perfect football 2012, that it would remain an athlet- he brings to any team room means
stadium for convincing yourself you ics venue, regardless of its new occu- he’s everybody’s choice to retain this
are going to do a track and field event pants. “It’s non-negotiable that this is trophy. We played many Ryder Cups
every 10 years.” a track and field facility,” he said in together and I’m sure he’ll do as good
AEG Europe chief executive David February. a job – if not better – than I did.”
Campbell added: “If you get a premier Olympic hero Dame Kelly Holmes Monty’s sentiments have been
football team you cannot have a run- was shown around the stadium by endorsed by several players, including
ning track around the stadium.” Coe last month and told City A.M.: new world No2 Lee Westwood. “I
Spurs declined to comment but City “The way it’s going to go is the track think it’s time Jose had a go,” he
A.M. understands that the club is very will stay.” added. “He’d make a fantastic cap-
unlikely to consider any arrangement Fellow top-flight club West Ham tain, he’s very inspirational and gets
that includes retaining the track. have also bid for the stadium but everybody on-side.”
Five years ago Tottenham walked have promised to retain the track. Olazabal played in seven Ryder Cups and has been vice-captain twice. Picture: PA SAM TORRANCE: PAGE 30

Hicks and Gillett set to block Ashes tour is not about


fresh offers to buy Liverpool retribution, says Strauss
involved in it. Ultimately, we’re hold-

CRICKET
ing the Ashes at the moment and we
tor Christian Purslow and commer- This latest development came on ENGLAND captain Andrew Strauss still want to be holding the Ashes in

FOOTBALL
cial director Ian Ayre – were all in the day when one potential buyer, insists they will not be on a revenge six months’ time.”
BY JON COUCH favour of selling, the proposals were Syrian businessman Yahya Kirdi, mission when they travel to Australia Strauss led England to Ashes glory
UNPOPULAR owners Tom Hicks and being blocked by Hicks and Gillett, claimed there was “no logic” in Hicks for the Ashes this winter. on home soil last year and was also
George Gillett faced the wrath of who are holding out for as much prof- and Gillett’s £600m asking price for Strauss is one of seven players in part of the iconic side who recap-
Liverpool supporters again last night it as possible. the club – and vowed to withdraw his the 16-man squad who were on the tured the urn in 2005.
after it was revealed they are to set to Hicks and Gillett need to find a interest. receiving end of a series whitewash But while the current crop have
oppose two fresh bids to buy the club. buyer before 15 October to repay their “Right now is not the time for me when the contest was last held Down enjoyed strong results, with a
The Liverpool board met yesterday £282m loans to the Royal Bank of and my group to enter into any negoti- Under, four years ago. Twenty20 World Cup and seven wins
to discuss proposals from two consor- Scotland and Wachovia. ations,” Kirdi said. “Once everyone is But in the second part of an exclu- from eight Tests this year, he believes
tiums – one believed to be from Asia If no buyer is found by that date, united and there’s logic in the price sive interview with City A.M. he says: “I their true measure is to come. “The
and the other from the current own- then RBS are free to take control of the and the overall deal, me and my group don’t think it’ll be on their minds. greatest tests lie ahead,” he adds. “At
ers of the Boston Red Sox. club and its assets or even place the will be prepared to return to the table.” This tour is not retribution for what the end of this winter we’ll be in a
But while the three independent company into administration, thus Hicks and Gillett put the club up happened last time or anything like much better place to measure exactly
members of the board – chairman invoking a subsequent nine-point for sale back in April after struggling that. “There were some lessons where we are as a side.”
Martin Broughton, managing direc- penalty from the Premier League. with debts of £351m. learned. Most of the team weren’t INTERVIEW: PAGE 29
MICHAEL CHARLIE DARRYL
DOUGLAS SHEEN HANNAH
AN OLIVER STONE FILM

2 DISC
COLLECTOR’S
EDITION
WITH OVER
AN HOUR OF
SPECIAL FEATURES
NEVER BEFORE
SEEN ON DVD

© 2010 Twentieth Century Fox Home Entertainment L.L.C. All Rights Reserved.
U.S. BOX OFFICE No.1

IN CINEMAS TODAY

You might also like