Issue 1,173 Friday 9 July 2010

BUSINESS WITH PERSONALITY FREE

www.cityam.com

BATTLE OF BIKINIS FOR

THE BEACH
SIZZLE IN

THE BANKS
BANKING
SOME
GREAT
COZZIES
P26
▲

BY VICTORIA BATES AND DAVID HELLIER

SOME OF the City’s most powerful names are
gearing up for an almighty bidding battle over
state-controlled banking assets including
Northern Rock and parts of Lloyds Banking
Group.
Lloyd’s of London chairman Lord Levene and
City grandee Sir David Walker will take on
Richard Branson’s Virgin money in a fight to
create a new nationwide high street banking
giant.
The high-profile pair are set to list a new
vehicle on the Alternative Investment Market
in as little as three weeks’ time, with a view to
acquiring some or all of the state asset pile
after the IPO.
Sources close to Virgin Money yesterday
said the firm would still be “very much in the
hunt” for the assets despite the emergence of
a fresh contender. But tensions between the
rivals will be heightened by the revelation
that Virgin’s former chairman, the late Sir
Brian Pitman, had also played a key role in the (L-r) Bank raiders Walker, Levene and Virgin Money’s Gadhia Pictures: Micha Theiner/ CITY A.M, REUTERS
+5HIF85MH<"I@M
setting up of Levene and Walker’s venture.
City A.M. can reveal that Pitman, a former [Gadhia, Virgin Money’s chief executive], our deals. But though talk in the City yesterday
B>CM5GD97H57I@5F85M
Lloyds Bank chief executive, was a senior con- management team and business model were was that the new bank’s top team had not yet C:F57=B;5B8GIAA9F
sultant to the project prior to joining Virgin, something he wanted to be a part of.” managed to secure meetings with either
with those at the heart of the discussions con- Though they aim to raise just £50m at IPO, Northern Rock or Lloyds, a spokesman for the :9GH=J=H=9G:95HIF=B;
firming that he had been instrumental in Levene and Walker have already been able to venture insisted the “calibre of the team and
“reviewing and validating the business plan”. use their influence to secure £2bn of funding personalities mean there will be no problem
A Virgin Money spokesman played down from a group of 10-12 major City institutions, with taking them seriously”.  ,<9o A=@@=CB
talk of a conflict of interest between the ven- including Aviva Investors, F&C Asset Levene and Walker are expected to explore #=B;9CF;9.!
tures, but he confirmed that the firm had Management and Invesco. bids for a host of retail bank assets.
been aware Pitman was involved in other proj- Levene will take up the chairmanship of the Investment bank Cenkos and boutique advi- )I99B@=N569H<
ects at the time of his appointment. new bank, while Walker will be a non-execu- sory firm Kinmont are both advising on the +H5?9GGDCBGCF98
“It makes absolute sense that someone of tive director. A raft of other respected City fig- project. After the Aim listing, Cenkos will act
Sir Brian’s experience and stature would be ures have also agreed to join the board. Levene as nominated adviser (Nomad) to the as yet- 6M9H:5=F
consulted on a project like this,” he said. “But is said to have been “extremely active” in the unnamed firm, while Kinmont will be its
ultimately he decided that Jayne-Anne past three to four weeks in pursuing potential broker.   KCB89F:I@
F5B;9C:

Advisers will get a slice of the limelight GIAA9F

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 $=J9AIG=7
ADVISING on Lord Levene and Sir David Gavin Kelly’s Kelly, a larger-than-life Scotsman famed
Walker’s new retail bank is a particularly Kinmont has for throwing some of the business world’s 5:H9FF57=B;
lucrative piece of business for Cenkos and advised the best parties, has offices near to Berkeley CBH<95B8GH5B8
Kinmont, who have already been hard at new vehicle Square. His firm’s business spans public
work preparing the team for what one and private company, private equity and
insider described as “a pugnacious couple debt capital markets advisory services.
of months” ahead. Though small, the firm does have a ,=7?9HG:FCAoD9FD9FGCB
Cenkos corporate broker Paul Hodges has track record in helping to establish new
so far been instrumental in leading the financial services ventures. =B98=B=B;:FCAo
=B7
58A=GG=CB
fundraising charge that has brought in It previously worked on setting up envi-
around £2bn of investment from the insti-

tutions, aided and abetted by his counter-
7C
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part Ian Soanes over in the firm’s corporate
finance department.
Hodges, a former composite insurance
analyst, joined Cenkos in March 2005. He
previously worked under Terry Smith at
Collins Stewart.
FTSE 100 ▲ 5,105.45 +90.63 DOW ▲ 10,138.99 +120.71
Thrust into the limelight as the other
half of the advisory team is Kinmont, a bou-
tique set up by former UBS corporate finan-
cier Gavin Kelly in 2003.
NASDAQ ▲ 2,175.40 +15.93 £/$ 1.52 unc
ronmental exchange group Climate ,C6CC?,75@@
Exchange, bought out recently by US rival CFJ=G=H5G7CH
IntercontinentalExchange, and also
advised on the setting up of London-listed
insurance business Lancashire.
Certified Distribution
5/04/10 - 2/05/10 is 106,285
£/¤ 1.20 unc ¤/$ ▲1.27 +0.01
 2 News
We won’t run out of oil any time soon
EDITOR’S LETTER
ALLISTER HEATH
THERE is only one rule when it comes
to the availability of oil: experts are
always convinced it will run out – but
it never seems to. Brent crude is now
at close to $75 a barrel, which is high
but hardly excessively so by historical
standards. There will be upwards
price pressure in the aftermath of the
BP disaster and the clampdown on
new drilling, though if prices do rise
enough the incentive to find more of
the black stuff will increase commen-
surately, especially in countries with a
more liberal exploration policy, and
this ought to keep a lid on prices.
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WHAT THE OTHER PAPERS SAY THIS MORNING
MOD UNDER FIRE ON £20BN PROPERTY
ESTATE
The Ministry of Defence has failed to
make the most efficient use of its
£20bn property estate and should
consider selling more land to help
reduce costs in the current economic
climate, a report by the National
Audit Office will say on Friday. The
department raised £3.4bn from the
sale of surplus property between 1998
and 2008, the report acknowledges.
IMF WARNS OF CONTAGION THREAT TO
US
The US economy has rebounded
faster than expected but faces the
threat of contagion from sovereign
debt problems in Europe, the
International Monetary Fund has
warned. In an advance summary of
its annual health check of the US
economy, the IMF said: “While still
modest by historical standards, the
But one thing is clear: the peak oil
theorists, who constantly predict that
prices are about to explode, keep on
getting it wrong but are never suffi-
ciently held to account by a gullible
media. As Mark Perry, a professor at
the University of Michigan, reminds
us, it was five years ago that Houston-
based Matthew Simmons (a leading
peak oil man) and the unusually sen-
sible New York Times columnist John
Tierney bet $5,000 on the price of oil.
The wager was based on the average
daily price for 2010, adjusted for infla-
tion. If the inflation-adjusted oil price
averages $200 or more, Simmons
wins $10,000, and if the average price
this year is less than $200, Tierney
wins. As Perry points out, average oil
prices this year won't even be any-
where close to $100, and will probably
average less than $70, far below the
$200 price predicted by Simmons.
Only a total catastrophe would ensure
the price would average $330 per bar-
rel for the rest of 2010 – which is what
would be needed for Simmons to win
ECB reassures
over Eurozone
ECONOMY
▲
BY EMMA SADOWSKI
EUROPEAN Central Bank (ECB) presi-
dent Jean-Claude Trichet yesterday
dismissed fears that the Eurozone
could be faced with a double-dip
recession after the bank held the
bloc’s interest rates at one per cent.
The ECB has held its main rate at
one per cent for 14 months but
Trichet said that he expects the
Eurozone’s economic recovery from
the crisis to be moderate and uneven
in pace.
The Eurozone economy would per-
form “much better” in the second
quarter, according to Trichet, who
suggested that the ECB might lean
towards reducing a bond buying pro-
gramme initiated in May to help deal
with the sovereign debt crisis experi-
enced by the 16-member European
recovery has proved stronger than we
had earlier expected, owing much to
the authorities’ strong and effective
macroeconomic response.”
RIO TINTO CONFIRMS MONGOLIAN
MINE INTEREST
Rio Tinto has ended months of specu-
lation by confirming plans to swap its
shares in Ivanhoe Mines for a direct
stake in Mongolia’s Oyu Tolgoi copper
and gold project, which is 66 per cent
owned by the Canadian miner. Rio
owns an indirect interest in Oyu
Tolgoi, one of the world’s largest
undeveloped copper deposits,
through its 29.6 per cent stake in
Ivanhoe.
LATE OBR CHANGES SHRANK JOB LOSS
FIGURE
The Office for Budget Responsibility
made last-minute changes to its
Budget forecasts that had the effect of
reducing the impact of the emer-
gency Budget on public sector job
losses.
his bet. He will have to hand the cash
over and eat humble pie.
The oil industry is having to spend
vast amounts to keep production at
elevated levels; it is becoming harder
to find new sources of oil. Demand
has been low, thanks to the recession.
But the biggest driver of prices over
the next few years will be political fac-
tors – such as bans on drilling – rather
than any inherent scientific or tech-
nological constraints.
ECONOMICS OF FOOTBALL
Freakonomics, eat your heart out. The
latest issue of the London School of
Economics’ CentrePiece contains
some fascinating insights on the
World Cup and football, from an eco-
nomic perspective. Among the find-
ings are that two-footedness – the rare
ability to use both feet equally well to
pass, tackle and shoot – commands a
large wage premium. Research by
Alex Bryson and colleagues finds a
clear link between top performance
and high wages among professional
bloc.
A double dip into recession “is not
at all what we are observing”, argued
Trichet, who said the decision to pub-
lish stress test results on European
banks was a welcomed move and that
action should only be taken where
problems arise.
“Sound balance sheets, effective
risk management and transparent
robust business models are key to
strengthening banks’ resilience to
shocks and to ensuring adequate
access to finance,” Trichet said.
MORE ECONOMICS: P10
ECB president Jean-
Claude Trichet
welcomed the move to
publish Eurozone
stress test results.
DIRECTOR SAYS BBC IS COMMITTED
TO RADIO 6 MUSIC AND DIGITAL
CONTENT
The BBC says it will not renew its
attempts to close 6 Music and has
pledged instead to put the radio sta-
tion “at the heart” of its digital port-
folio. On the day that the
Government set out a timetable for
the switchover to digital radio — but
did not set a specific date — Tim Davie
the BBC’s director of audio and
music, confirmed that the corpora-
tion was committed to the alternative
music station in the long term.
LAKELAND PROFITS FROM JAM TODAY
Politicians can no longer offer jam
tomorrow, so people are making their
own. Lakeland, the kitchenware busi-
ness, has sold half a million jam jars
already this year — and the preserv-
ing season has only just begun.
football players. But are teams able to
appropriate any of the returns to
employing two-footed players? The
answer, it seems, is no: the proportion
of two-footed players in a team does
not significantly affect the number of
points the team gets at the end of the
season.
Here’s another fun stat. New salary
contracts for Premier League referees
have improved their performance as
measured by the number of yellow
and red cards issued per game. The
research reveals that, since the intro-
duction of the new contracts in the
2001/02 English football season, refer-
ees have issued half a card less per
game. Other studies have shown a
strong negative relationship between
the number of cards issued and sub-
jective assessments of referees’ per-
formance by expert panels. On
average, referees show three cards per
game: this research finds that the
new contracts have led to a reduction
of around one sixth. Happy days.
allister.heath@cityam.com
Spain’s Jose Luis Rodriguez Zapatero said reform was important
Spain to privatise banks
ECONOMY
▲
BY HARRY BANKS
THE SPANISH government will today
approve an overhaul of savings-bank
regulations, opening the door to pri-
vate ownership of the mutually
owned savings banks or “cajas,”
Prime Minister Jose Luis Rodriguez
Zapatero said yesterday.
“This is the most important reform
ever of our banking system,” Zapatero
said.
The reforms enable Spain’s trou-
IMF TELLS EUROPE TO INJECT MORE
STIMULUS
The International Monetary Fund has
called on the European Central Bank
to prepare fresh emergency action to
stabilise debt markets, throwing its
weight behind calls for renewed mon-
etary stimulus to offset budget cuts.
The ECB has so far purchased €59bn of
Greek, Portuguese, Spanish, and Irish
bonds.
CONRAD BLACK SEEKS BAIL AFTER
FAVOURABLE US COURT RULING
Conrad Black, the former media mag-
nate, is seeking bail after the US
Supreme Court overturned part of the
$6.1m (£4m) fraud conviction that
saw him sentenced to six-and-a-half
years in prison in 2007. Lord Black has
served his sentence to date at
Coleman Federal Correctional Centre
in Florida. The US Appeals Court will
decide if the conviction is quashed.
CITYA.M. 9 JULY 2010
NEWS | IN BRIEF
Swiss central bank down €7.5bn
The Swiss National Bank has possibly
suffered paper losses of up to SFr10bn
(€7.5bn or £6.28bn) after interventions
in the currency markets to restrain the
value of the country’s currency. The cen-
tral bank is expected to report a big loss
in its second-quarter accounts, which
come out in mid-August.
UKFI executive to step down
Sam Woods, the chief operating officer
at UK Financial Investments, which
oversees the government’s bank stakes,
is to step down, making him the fourth
person to leave the organisation in the
past seven months. Woods is now work-
ing as secretary to the government-
appointed commission into whether
retail and investment banking should be
separated in the UK, he said in a tele-
phone interview to Bloomberg. He
refused to comment further.
Hamleys is back in the black
Hamleys has announced its first annual
profit in six years. The famous toy store
reported a £100,000 pre-tax profit in
the year to 27 March, compared with a
£4.1m loss a year ago.
Picture: REUTERS
bled savings and loans banks to sell
up to 50 per cent of their equity to
private investors.
Under current rules, cajas are
restricted to selling non-voting securi-
ties known as “participative quotas”,
as well as normal shares in listed
industrial holding subsidiaries.
Zapatero, who has come under
immense pressure this year to speed
up economic reforms, said the new
rules would also “strongly limit” the
number of elected officials named to
the boards.
BURKLE, IN TESTIMONY, OBJECTS TO
BARNES & NOBLE POISON PILL
Billionaire investor Ronald Burkle
said the poison-pill plan that Barnes
& Noble Inc. enacted to stop him from
taking a larger share in the company
has imposed draconian restrictions
on his ability to wage a potential
proxy fight against the Riggio family
which controls the bookseller.
BLOCKBUSTER CEO KEEPS PAY
PACKAGE
Blockbuster’s chief executive, head of
a company so strapped for cash it
skipped a scheduled debt payment
last week, will retain his previous
salary and is in line for a bigger
bonus. James Keyes’s new employ-
ment agreement, announced in a fed-
eral filing on Wednesday, will pay
him a salary of at least $750,000 a
year. The new agreement also looks to
pay him a bigger bonus.
CITYA.M. 9 JULY 2010 Politics 3

Coalition tells top suppliers

to cut the cost of services
meeting and told to do their bit to handled by Maude and Danny

▲
POLITICS
BY DAVID CROW
FRANCIS Maude, the minister for
the Cabinet Office, yesterday hauled
in the bosses of blue-chip companies
and asked them to cut the cost of the
services they provide to the govern-
ment.
Nineteen chief executives, from
the likes of Serco, BT, Logica and
Vodafone, were summoned to the
reduce Britain’s budget deficit.
Maude told the bosses to prepare
for a round of tough negotiations,
designed to reduce the amount the
government pays to private suppliers
and contractors.
Cabinet Office officials said there
would be some impact on suppliers’
profits, but added they hoped to
minimise it by rooting out waste and
inefficiency. The negotiations will be
Alexander, the chief secretary to the
Treasury.
Maude said: “I am laying down the
challenge to major government sup-
pliers to ask them what they can do
to take costs out of contracts.
“Some of this will come out of
margins, but we will also invite ideas
on how we can structure things dif-
ferently to reduce complexity and
cost.”

Pensions minister Steve Webb favours the CPI measure Picture: PHOTOSHOT

Government
cuts private
pension costs
sioners, most of whom have no hous-
▲

POLITICS
BY DAVID CROW
THE government yesterday outlined
plans that will shave billions of
pounds off the private sector’s pen-
sion bill, by reducing the amount that
pension payments must rise in line
with inflation.
In future, payments for those on
final salary schemes will rise in line
with inflation as measured by the
consumer price index (CPI), as
opposed to the retail price index (RPI),
which is historically much higher.
Currently, private sector pension
schemes must uprate their payments
by either 2.5 per cent or the cost of liv-
ing, depending on whichever is high-
est.
Under existing arrangements, the
cost of living is measured by the RPI,
which includes housing costs like
mortgage interest payments. That
means it has been considerably higher
as house prices have boomed.
The coalition is making the move
to reduce the cost of private sector
pensions to the government, which
must step in and help fund the
schemes when they fall into difficul-
ties.
Treasury sources insist the CPI
measure of inflation is better for
working out the cost of living for pen-
ing costs. The average gap between the
CPI and RPI has been around 0.5 per
cent a year over the last twenty years.
Pensions minister Steve Webb said:
“The government believes the CPI pro-
vides a more appropriate measure of
pension recipients’ inflation experi-
ences.”
"We believe, therefore, it is right to
use the same index in determining
increases for all occupational pen-
sions and payments made by the
Pension Protection Fund.”
Accountants KMPG said the move
would, at a stroke, wipe £50bn from
the pensions deficits of FTSE 350 com-
panies.
Employers’ group the CBI wel-
comed the change. “Statutory indexa-
tion is the biggest single regulatory
cost borne by final salary schemes,” it
said.
But the Trades Union Congress hit
out at the plans, claiming today’s pen-
sion payments would be 14 per cent
lower if they had been increased in
line with the CPI instead of the RPI.
The move does not effect those on
defined-contribution schemes, which
have become more prevalent in recent
years. Their pension will depend on
the inflation arrangements of the
annuity they purchase when they
retire.

Office For Budget Responsibility

must be reformed, warns CEBR
beginnings” of the OBR.
▲

POLITICS
LEADING think-tank the Centre for
Economic and Business Research
(CEBR) has today called for urgent
reform of the Office for Budget
Responsibility (OBR), saying it needs
to establish its independence from
George Osborne’s Treasury.
Doug McWilliams, chief executive
of the CEBR, said “drastic change”
was necessary after the “chequered
The government’s new tax and
spending watchdog’s independence
was called into question after the
decision to bring forward publication
of its employment forecast following
reports of a leaked Treasury docu-
ment indicating that up to 1.3m jobs
in the public and private sectors were
at risk from spending cuts.
“Its chequered beginnings disap-
point me,” added McWilliams.
 4 News
Obama’s bid to restore ban on
deepwater drilling is rejected
▲
ENERGY
BY EMMA SADOWSKI
AN APPEALS court in the US has
maintained a ruling made by a lower
court to lift a six-month moratorium
on deepwater drilling imposed by the
Obama administration.
The US Court of Appeals for the
Fifth Circuit made the decision only
an hour after the arguments were
US President Barack Obama is creating a revised ban on deep sea drilling made yesterday.
The move comes as the Obama
administration is preparing to issue a
revised ban on deepwater drilling
below 500 feet.
It had inflicted the mortorium
after the explosion of the Deepwater
Horizon rig, which killed 11 people,
so that it could launch an investiga-
tion into the incident.
Officials from the interior depart-
ment had said prior to the court’s
decision that the government would
BP is given a
day to meet
US demands
BP IN CRISIS
BY EMMA SADOWSKI
THE OBAMA administration ratch-
eted up the pressure on BP yesterday
after Admiral Thad Allen sent a letter
to the embattled oil giant demanding
that he be notified of every move it
makes in responding to the Gulf of
Mexico spill disaster.
Allen, who is leading the Gulf oper-
ations for the US government, told BP
that it has to receive his approval
“before any actions are taken on each
of the decision points subsequently
identified” to deal with the leaking
well.
The letter, which was addressed to
BP spill boss Bob Dudley, demanded
that Allen be notified of “steps and
decision points involved, mitigation
efforts to be implemented and contin-
gency plans” before the group goes
ahead with them.
BP, which hasn’t responded to the
letter, said that it will respond in due
course.
Allen has set BP a deadline of today
to provide him with updated time-
lines of its response.
BMW revs up Nortel group is
first half sales fined £2.1bn
▲
AUTOMOTIVE
BMW, the world’s largest luxury car-
maker, sold 13.7 per cent more BMW
vehicles last month, outpacing more
tepid growth at its Mini brand.
The company sold 119,663 BMWs in
June, bringing its first-half tally to
585,755 vehicles for a gain of 14.1 per
cent. Mini only managed to sell
23,202 cars, or nearly 110,000 in the
first half.
“In some cases, the automobile
markets are recovering much faster
than expected. We had a successful
first half-year with (group) retail
growth of 13.1 per cent,” sales chief
Ian Robertson said in a statement.
CITYA.M. 9 JULY 2010
not impose a new ban, if the court
supported the original drilling mora-
torium.
The ban was first lifted by the court
after drilling companies like
Hornbeck Offshore Services and
Diamond Offshore Drilling claimed
the moratorium was too broad and
would have a severe financial impact.
Interior secretary Ken Salazar said
a stay on the ban was urgent because
of the imminent hurricane season.
The letter is part of a number of
recent aggressive moves made by the
Obama administration to gain con-
trol over the group, after assistant
attorney-general, Tony West, wrote to
BP earlier this week requiring the
company to give the government 30
days notice of any moves that would
affect the size and shape of its busi-
ness, including any asset sales.
A spokesman for BP confirmed the
group had received the letter and
that it would respond in due course.
BP also sought to distance itself yes-
terday from a 27 July target date to
have the first relief well completely
drilled after Dudley said that in a
“perfect world with no interruptions,
it is possible to be ready to stop the
well between 20 and 27 July”.
“It is unlikely to happen by that
date. It is more likely that the well
will be drilled by mid-August. Our tar-
get still remains mid-August,” said a
spokesperson for the group.
BP is currently a few hundred feet
away from tapping into the leaking
Macondo well, with the last steps to
complete the drilling expected to take
more time, but possible stormy
weather could pose a threat.
PENSIONS
REGULATORS yesterday took the
unusual step of ordering administra-
tors of the insolvent Nortel group to
provide up to £2.1bn in financial sup-
port to help bail out its 42,000 pen-
sion fund members in Britain.
The Pensions Regulator issued a
Financial Support Direction against
25 companies in the telecoms equip-
ment group, which was put into
administration in January last year.
The regulator accused the
Canadian parent company of squeez-
ing its British subsidiary for years – to
the detriment of the pension fund
that it sponsored.
CITYA.M. 9 JULY 2010 News 5

Banks to skip
bonus curbs, Michel Barnier, the
EU’s Internal Markets
commissioner, says the

experts warn
bonus clampdown
indicates that “there
will be no return to
business as usual.”
Picture: GETTY

CITY VIEWS: WHO IS BEST PLACED TO REGULATE BANKERS’ BONUSES?

▲

REGULATION for a cut to cash bonuses. Vicki Elliott,

BY OLIVER SHAH
BANKS will easily sidestep the
European Union’s crackdown on
bonuses by raising base salaries and
restructuring performance-related
awards, consultants and senior politi-
cians believe.
The European Parliament yesterday
waved through a punitive regime cap-
ping the cash portion of bonuses at
30 per cent and forcing banks to pay
the rest in shares and contingent cap-
ital, with up to 60 per cent staggered
over three to five years.
Although the British Bankers’
Association warned the tough meas-
ures – not matched in the US or Asia –
would lead to an exodus of talent
from Europe, insiders yesterday sug-
gested institutions would be able to
work around them.
A study by Mercer, the business
consultancy, found 70 per cent of
banks and insurers had already hiked
employees’ basic pay to compensate
A Daimler Brand
a partner leading Mercer’s financial Interviews by Marion Dakers and Daniella Farsiani
industry rewards consulting, said
City firms were planning to change
their remuneration policies in line
with the forthcoming rules, but were CHARLES PREWER | RFIB GROUP
“trying to balance practicality with
added complexity in the process”. “Ideally the banks would do it themselves. But some of them got too greedy and now it’s inevitable that someone else will
A senior British politician, who
asked not to be named, said banks step in, though they will never fully regulate bonuses. It should be the Bank of England overseeing this, not the EU.
could maintain high cash payouts It’s the most undemocratic institution I can think of, and the rules have no grounding in the realities of banking.”
simply by increasing the overall size
of a bonus and linking the deferred
element to impossible targets.
KEVIN WALKER | HW WOOD
“They’ll easily get around it,” he said.
The EU measures on remuneration, “The bonuses are a completely commercial decision, and I don’t believe they should be regulated by anyone outside the
contained in a wider bill, will come companies. The EU’s decision to limit the amount of cash in a bonus isn’t a bad idea, but it’s one the banks should have
into effect at the start of next year.
come up with. They should be sensible enough to work something out themselves.”
FAST FACTS | EU BONUS LAW
● The restrictions on bankers’ awards are con-
RICHARD ELLISON | DEWEY & LEBOEUF
tained in the third draft of the EU’s Capital
Requirements Directive. “I think it’s the place of governments to oversee any regulation. The banks have already had a chance to arrange
● The European Council is scheduled to ratify something. The EU rules could be more effective, as they prevent competition between countries to attract
the legislation next Tuesday.
companies with lax laws.”

One day. Could be tomorrow.

The C-Class.
Visit www.mercedes-benz.co.uk/today

The C180 K BlueEFFICIENCY Executive SE Saloon with Metallic Paint

Monthly payment* £299 Retailer deposit contribution** £1,335.52 On-the-road price £25,300 Total amount payable by the customer‡ £26,763
Customer deposit £3,699 Optional purchase payment† £12,025 Total charge for credit £2,798.52 Total amount payable‡ £28,098.52
Number of payments 36 Acceptance fee £180 Amount of credit £20,265.48 Purchase activation fee† £95

Typical 5.9 % APR

Official government fuel consumption figures in MPG (Litres per 100km) for the C180 K BlueEFFICIENCY Executive SE Saloon with manual transmission: Urban: 32.8 (8.6), Extra Urban: 54.3
(5.2), Combined: 43.5 (6.5). CO2 emissions: 154 g/km. Model shown is a Mercedes-Benz C180 K BlueEFFICIENCY Executive SE Saloon manual with optional metallic paint at £630.00. Total price: £25,300.00 on-the-road (price includes VAT, delivery, maximum Road
Fund Licence, number plates, new vehicle registration fee and fuel). *Based on a Mercedes-Benz Agility agreement. **The Retailer contribution is only available with this finance offer. †Payable if you exercise the option to purchase the car. ‡Includes optional purchase payment and purchase activation
fee. Example based on 10,000 miles per annum. Excess mileage charges may apply. Guarantees and indemnities may be required. This finance campaign is available for C-Class Saloon models, excluding special request engines, registered between 1st July and 30th September 2010. Offer cannot be
used in conjunction with any other published offer from the Retailer and is subject to availability. Terms and conditions apply. Prices correct at time of going to print. Credit provided subject to status by Mercedes-Benz Financial Services UK Ltd, MK7 8ND.
 6 News
Quest: Shares in Ocado are
overvalued by 46 per cent
▲
RETAIL
BY STEVE DINNEEN
ANALYSIS firm Quest has delivered
another slap in the face to Ocado, as
the grocery delivery firm attempts to
justify its £1.1bn IPO valuation to
investors.
The Collins Stewart subsidiary says
it values shares in Ocado at just 128p
– a staggering 46 per cent under the
mid-point put forward in its prospec-
tus.
We rest our case
One way flight with one 20kg hold bag booked online*
In July and August this year it will cost over
3 times as much to book your 20kg hold bag
online with Ryanair than easyJet.
*Price based on a single item of hold baggage of more than 15kg and up to 20kg booked online one way. Prices vary
depending on weight and number of hold bags. Prices applicable between 1 July and 31 August 2010. Prices correct
as at 7 July 2010. See http://www.easyjet.com/asp/en/baggage for further details.
It says Ocado must convince
investors it can grow sales at 19 per
cent a year for the next 10 years and
sustain returns almost twice those of
Tesco to justify a mid point valuation.
Quest says Ocado, which is a capital
intensive business, will never gener-
ate the same level of returns as its
rivals. The analysts used complex
models to reverse engineer the levels
Ocado would have to hit to justify its
monster valuation.
The update concluded with the
warning: “Unlike its chilled delivery
vans, Ocado’s IPO is too hot to handle
at a valuation of 200-275p.”
Ocado embarked on a two week
roadshow on Tuesday. The firm,
which recently signed a 10-year con-
tract to deliver Waitrose food, said it
is hoping to raise £200m.
Analysts have been lining up to
take a swipe at the firm and it was
dealt a further blow on Wednesday
when Amazon launched a rival gro-
cery delivery business.
BA’s Willie Walsh remains upbeat about its future
BA will grow
from Madrid,
warns Walsh
▲
AVIATION
BY EMMA SADOWSKI
WILLIE WALSH, the British Airways
chief executive, yesterday reiterated
his warning that the airline would
grow in future at Madrid instead of
Heathrow if the government failed to
build the infrastructure needed to
cope with rising demand for air trans-
port.
Speaking at the Institute of
Directors (IOD), Walsh said the UK
could compete effectively for a few
years but warned that in 20 years it
could be bypassed because the coun-
try doesn’t have the existing infra-
structure needed to support growing
demands.
The government’s decision to axe
the expansion programme at
Heathrow means the runways are
now full, said Walsh.
As a result, the airline’s planned
Spanish merger could allow the air-
line to exploit Barajas Airport’s four
runways, according to Walsh, who
Signs of life in global M&A space
as hunger for dealmaking returns
▲
M&A
THE global mergers and acquisitions
market is awaking from hibernation,
according to two surveys released yes-
terday.
There were $881bn (£581bn) worth
of deals in the first half of 2010, up 7.8
per cent on the same period a year
earlier, Mergermarket said.
Europe’s M&A recovery was even
more pronounced, with first half
deals up 24.1 per cent on 2009 to
$240.3bn, with a 53.8 per cent lift in
the second quarter.
CITYA.M. 9 JULY 2010
Picture: Micha Theiner/City A.M.
said that currently the airport oper-
ates only 80 per cent of its capacity.
Walsh also hit out at the increasing
rise in air passenger duty (APD) and
argued that separate UK airline taxa-
tion should come to an end otherwise
it could be damaging to the economy
as commercial carriers leave the
country.
But Walsh remained upbeat about
BA’s future, despite being faced with
a possible third strike this summer,
and said it was a possibility that the
airline could buy or merge with more
airlines next year.
A planned joint venture with
American Airlines is likely to receive
clearance from competition bodies in
Europe and the US relatively soon,
while BA is awaiting six new Boeing
777-300 aircraft to its fleet.
“But all such investment is depend-
ent on reshaping our business.
“That is why we have been pursu-
ing structural change, which has lead
to lower headcount and more effi-
cient ways of working,” said Walsh.
Mergermarket released the figures
alongside its global league table of
advisers, which was topped by
Simpson, Thatcher and Bartlett.
A second survey suggests the out-
look for global M&A is also improv-
ing, with 78 per cent of practitioners
expecting an increase in deal activity
over the next 12 months.
The survey of 160 dealmakers, car-
ried out by IntraLinks, also found that
52 per cent of respondents thought
improved market and financial condi-
tions would be the principal driver
behind an uptick in M&A.
CITYA.M. 9 JULY 2010
Private banks have
£10.9 trillion but
can’t beat stocks
PRIVATE BANKING
▲
BY MARION DAKERS
PRIVATE banking firms now manage
assets worth £10.9 trillion, a rise of £1.3
trillion since last year, though many
firms fall behind the stock market in
the profit stakes, a report claimed yes-
terday.
Assets under management (AUM)
rose 17 per cent on last year, though
performance markers on efficiency
have fallen 35 per cent, according to a
survey by consultants Scorpion.
The top ten table remains largely
static, with Bank of America firmly at
the top with 10 per cent of all man-
ageable assets under its control.
Royal Bank of Canada is the only
new entrant to the top ten, after it
opened up its financial reports. Swiss
bank Pictet returns to the list after
two years outside.
Man told to improve
flagship hedge fund
HEDGE FUNDS
▲
BY OLIVER SHAH
MAN Group needs to focus on the “baf-
fling” lack of performance from its
flagship hedge fund, analysts said yes-
terday, after the asset manager
revealed another quarter of outflows.
The listed behemoth reported a 2.2
per cent net slide in assets under
management to $38.5bn (£25.3bn) in
the three months to 30 June as clients
pulled money out amid choppy mar-
kets. Investors’ disappointment at the
seventh consecutive quarter of
declines in Man’s asset base was tem-
pered by the fact the torrent of out-
flows seen last year appeared to have
slowed to a drip.
Failed $400m RidgeWorth
deal hits Henderson’s profits
FUND MANAGEMENT
▲
BY HARRY BANKS
FUND management group Henderson
said yesterday its failed takeover of US
fund manager RidgeWorth had made
a sizeable dent to its profit forecasts.
In a trading update, Henderson
said recurring profits for the six
months to end-June will be between
£47m and £49m – six per cent lower
than expected. That compares with
the £27m recurring profit haul the
company posted last year.
“This is after recognising deal costs
of £3m in connection with the poten-
However, wealth managers have
performed worse on average than the
stock market. The MCSI world stock
index rose 27 per cent in 2009, com-
pared to annual returns of 17 per cent
in the private banking industry.
“The wealth management engine is
still misfiring for many. There are
strong signs of wealth creation even
in these complex markets and yet
new clients are holding back from
opening accounts with the industry,”
said Scorpion managing partner
Sebastian Dovey.
The research showed over 220 insti-
tutions currently offering a private
banking service.
“We feel it is time the fashion to
retain the cottage industry percep-
tion is laid to rest,” said managing
partner Catherine Tillotson. “Those
businesses that cling on to the past
are likely to be marginalised rapidly.”
AHL, Man’s main quantitative fund
run by a legion of PhD graduates, has
gained 3.1 per cent this year until the
end of June after slumping 16 per
cent last year. It generated 0.9 per
cent in the turbulent second quarter,
despite wobbles in the Eurozone, a
result chief executive Peter Clarke
described as “pleasing”.
“However, given the continued
market uncertainty, sales in the quar-
ter have, as anticipated, remained
subdued,” Clarke said.
Keith Baird at Oriel Securities said
cranking up AHL’s returns would be
crucial to improving sales. He said:
“Man’s sales figures are weak. The
two things they need are better
investor confidence and better per-
tial acquisition of RidgeWorth Capital
Management,” Henderson said.
Last month, Henderson pulled out
of a deal to acquire the fund manage-
ment arm of banking group SunTrust
for a reported price of up to $400m
(£264.5m). Last month a Henderson
spokesman said the firm is still on
the lookout for acquisitions in the US.
Gross performance and transaction
fees for the first half of the year will
be about £41m, versus £18.7m in the
same period last year.
“Markets have remained volatile as
governments begin to repair their
finances with fiscal tightening lead-
News 7
NEWS | IN BRIEF
OFT queries Rex sale to Getty
The Office of Fair Trading (OFT) yester-
day referred the anticipated acquisition
by Getty Images of Rex Features to the
Competition Commission for further
investigation. Getty and Rex are two of
the largest suppliers of photographic
images for editorial use by UK publica-
tions. The OFT is concerned Getty would
be free to increase prices if the merger
went ahead because of lack of competi-
tion.
Boris calls for better transport
London mayor Boris Johnson yesterday
called for an upgraded Tube and Crossrail,
to boost the capital’s business.
Speaking at the Confederation of British
Industry (CBI) yesterday he warned that
Private banks manage £10.9 trillion of assets for clients Picture: GETTY cutting vital investment in London’s trans-
port system would hurt London’s business
TOP TEN GLOBAL PRIVATE BANKS BY ASSETS UNDER MANAGEMENT (SOURCE: SCORPIO) and damage the UK economy. He said the
government should protect vital improve-
2010 Benchmark AUM (USD bn) 2009 Benchmark AUM (USD bn) ments to the transport system.
1 Bank of America 1,740.51 1,501.00
2 UBS 1,593.74 1,393.48 TUC in bid to ban Cameron
3 Morgan Stanley 1,508.00 522.00 The transport workers’ union has called
on the Trade Unions Congress to with-
4 Wells Fargo 1,218.00 1,000.00 draw an invitation to David Cameron,
5 Credit Suisse 775.43 611.96 who is due to address the organisation’s
6 JP Morgan 636.00 522.00 annual conference in September. In a
7 Royal Bank of Canada 379.00 New entrant sign of escalating tensions between the
government and public sector workers,
8 HSBC 367.00 352.00 the RMT said the Prime Minister was
9 Deutsche Bank 272.38 231.19 launching the “biggest attack on the
@
10 Pictet 243.21 New entrant trade union movement since Thatcher.”
Hot
Traffic!
@
formance from AHL. It’s baffling as to
why it can’t make more money.”
Man’s asset base will grow to
around $63bn after it takes over rival
GLG Partners. The acquisition is due
to close at the end of September.
ANALYSIS l Man Group
p nüvi 1690 tops Which?
280 218.40 sat nav test June 2010
@
08 Jul Sat
Nav June 2010
260
240
220
200
12 Apr 30 Apr 21 May 11 Jun 1 Jul
Instant traffic updates help you
hit the beach not the traffic.
ing to a fragility in confidence,” said nüvi® 1690 sat nav with Hot Traffic and
Andrew Formica, Henderson’s chief other nüLink! live services FREE for 1 YEAR*
™
executive.
On Wednesday, Henderson said it garmin.co.uk/1690
had transferred its international
property fund over to Aviva Investors
following a strategic review of the
fund’s prospects.
The fund only reopened to daily
dealing in February this year, having
previously been closed for over a year
when redemptions snowballed dur- MORE NEWS
ing the credit crunch. Aviva will com-
bine the fund with the £223m of
ONLINE *see website for details
AVAILABLE FROM:
assets in its own European and Asia- www.cityam.com HALFORDS / AMAZON / CURRYS / JOHN LEWIS / BEST BUY
Pacific real estate funds.
 The Capitalist
8 CITYA.M. 9 JULY 2010
GOLDMAN CASE STRIKES FEAR INTO
HEARTS OF PRUDENT COMPETITORS
THE SEC’S fraud case against
Goldman might have proved an
almighty headache for the bank’s
own staff, but at least it’s spawned a
valuable lesson for rivals.
Citi took the opportunity to send
employees a missive in the wake of
the accusations, imperiously titled
“Think Before You Write: Avoiding
Improper Electronic
Communication”.
The 11-page illustrated presenta-
tion reminded employees that “ecom-
munications are a powerful
investigative tool for US federal prose-
cutors, state attorneys general, regu-
lators, plaintiffs’ lawyers and other.
International enforcement agencies
are expanding their use of email to
build cases and investigations are
increasingly going global…”
In case warnings like these weren’t
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
enough to deter naughty staff, the
bank also included a smattering of
photographs and quotations for
effect, including a stern-looking shot
of the aggressive senator Carl Levin,
the man who grilled Lloyd Blankfein,
and a reminder of one of the trader
emails that turned Goldman faces
red, explaining “Boy, that…was one
sh**ty deal”.
Not getting at all nervy, are we?
Emails can be treacherous little blighters
NEIGHBOURLY LOVE
Panmure Gordon’s corporate broking
big man Adam Pollock was basking in
the celebrity limelight yesterday after
a practical joke landed him a men-
tion on Capital FM’s breakfast show.
Pollock is currently in the process
of moving house but found his
removal van blocked in yesterday by a
car belonging to his Wandsworth
neighbour – none other than
Capital’s resident funnyman Johnny
Vaughan.
Cue a text from our broking chief
to Vaughan while he was on air,
telling him the car was about to get
towed away… and a moment of fame
Vaughan fell victim to a City boy prank
as Vaughan relayed the message to his
listeners. Very droll.
IDENTITY CRISIS
Is there no end to the lengths people
will go to these days to avoid looking
like they’re spending any money? I
only ask after the winning bidders for
billionaire investor Warren Buffett’s
annual charity lunch auction yester-
day pulled out of revealing their iden-
tities, despite stumping up a
combined $2.6m for the privilege.
The amount set a new record for
steak with the Sage of Omaha, beat-
ing Zhao Danyang of Pureheart Asset
Management into second place with
his 2008 bid of $2.11m.
FESTIVE FROLICS
Is it that time of year again? A missive Finally, wally of the day award goes to
pops into The Capitalist’s inbox from
technology giant Microsoft, contain-
ing an invitation to the group’s annu-
al “Showcase Event” at
the Saatchi Gallery.
“You’ll get to play
and experience the
very latest must-
have Christmas
gifts,” spout the
organisers, excit-
edly.
They’ll have
Wham! blasting
out of the speakers
Pictures: REX
in the shops before the month is out,
you mark my words.
FIT FOR A QUEEN
Speaking of the golden oldies, atten-
tion-seekers in the City are going to
love a new charity initiative set up by
one of their own.
Liz Swanton, who works at foreign
exchange risk reduction specialist CLS
Bank, had the brainwave last year of
raising money for charity by dressing
as legendary Queen frontman Freddie
Mercury for the day.
This year, she’s decided to go one
bigger and launch a nationwide
“Freddie For the Day” initiative to
take place on 3 September and raise
much-needed funds for the Mercury
Phoenix Trust HIV Aids charity, origi-
nally set up in Freddie’s memory. Like
dress-up days at school, only better
now that we’re all supposed to be
grown up...
LAP OF VICTORY
A cunning ploy, this, coming ahead of
the British Grand Prix at Silverstone
at the weekend – and playing on the
innate competitiveness of the City
boys and girls.
Foreign exchange broker FxPro,
fresh from signing up to sponsor
Aston Villa football club for the next
three years, has struck a deal with the
Virgin Racing Formula One team to
launch an online game which inter-
twines the worlds of racing and cur-
rency trading.
Bizarre, you might think, and so is
the result – you choose your car based
on a currency comparison and the
performance of the currency deter-
mines whether or not you end up on
the podium or crashing into the barri-
ers.
Most importantly, though, winning
credits from race victories will put
you in line for F1 and Premier League
tickets. Time to put all that forex
knowledge to good use, eh?
HIGH FLIER
Astaire Securities’ Ruari McGirr, for
arriving at the airport for his partner-
in-crime Seb Wykeham’s stag do with
a whole lotta luggage…
and no passport.
What’s more, I hear
it’s far from the first
time that the sup-
posed “high
flier” has
turned up with-
out the elusive
little booklet
when travelling.
D’oh.
CITYA.M. 9 JULY 2010
Lupus dodges
housing woes
to raise sales
▲
MANUFACTURING
BY OLIVER SHAH
BUILDING products firm Lupus
Capital shrugged off concerns over
the state of the US housing market
yesterday to reveal first half sales of
£133m, up 14 per cent year-on-year.
Shares in Lupus, which manufac-
tures parts for doors and windows,
bounced 7.28 per cent to 81p on the
news. They had traded at a depressed
level of around 74p for a fortnight
after falling heavily on poor new
home sales data from America, one of
Lupus’ key markets.
In a trading update, the company
said the effect of weaker new home
starts on both sides of the Atlantic
had been outbalanced by demand for
repair and maintenance work to
properties. Lupus said it also man-
aged to pass on the increased cost of
materials to its customers and con-
centrate its UK sales force.
The group added that its oil servic-
es arm, which supplies marine break-
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industry, was seeing better trading
conditions than in 2009.
Last year, Lupus was rocked by a
£7.5m charge for breaching its loan
covenants, which resulted in the
departure of executive chairman
Greg Hutchings. Hutchings tried and
failed to regain control of the busi-
ness twice. Lupus crashed to a
£650,000 loss for the year.
Finance boss James Brotherton said
the firm was well positioned despite
ongoing hikes in raw materials prices.
ANALYSIS l Lupus Capital
p 81.00
95
90
85
80
75
12 Apr 30 Apr 21 May 11 Jun
Trading king John Paulson saw one of his favourite portfolios slide Picture: GETTY
Paulson suffers 9pc loss
on star Advantage fund
HEDGE FUNDS hit by his bullish position in financial
▲
BY OLIVER SHAH stocks during market nervousness
over banks’ Eurozone sovereign debt
8 Jul JOHN Paulson, the hedge fund boss exposure and disappointing US eco-
who made billions of dollars shorting nomic data.
sub-prime mortgages in 2007, has The news will surprise the industry
seen one of his portfolios fall nearly as Advantage was one of Paulson’s
nine per cent this year. star performers throughout the dark-
Paulson Advantage, an arbitrage est days of the financial crisis. It
fund geared to benefit from mergers gained 37.6 per cent in 2008 and
and acquisitions, lost 6.9 per cent in ended 2009 in positive territory.
June and 8.8 per cent in the first half, Paulson’s firm, which runs around
1 Jul according to Bloomberg. Paulson was $35bn (£23bn), declined to comment.
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News 9
Three insurance
fraudsters hit
with FSA ban
INSURANCE
▲
THREE insurance professionals were
banned from operating in financial
services by the City regulator yester-
day for taking part in a £2m fraud
over an extended period.
Timothy Higgins, Clifford Felstead
and Ralph Brunswick were involved
in a scam to cheat the Market
International Insurance Company
(Markel), QBE Insurance and Amalfi
Underwriting, which exposed the vic-
tims to heavy losses, the Financial
Services Authority (FSA) said.
Higgins – with the help of Felstead
– ran Surety Guarantee Consultants
(SGC), a company established in 2005
to write surety bonds. SGC held
arrangements with Markel and QBE
through its agent Amalfi to issue the
bonds but secretly exceeded its autho-
rised limits, leaving them open to
greater liabilities than previously
agreed. SGC pocketed a secret £2m
profit which should have been paid to
the insurers. Brunswick provided
false documents to help hide the
arrangement from auditors.
Margaret Cole, FSA director of
enforcement, said: “All three of these
men fell woefully short of the stan-
dards expected of them.”
Higgins would have been fined
£600,000, but is bankrupt. Brunswick
was also struck off as a director.
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 10 Economic News
Insolvencies set to escalate
▲
UK ECONOMY
BY KATIE HOPE
UK insolvencies are forecast to rise
next year as austerity measures start
to bite, with more than 127,000 com-
panies continuing to suffer “signifi-
cant” financial distress, restructuring
specialist Begbies Traynor warned yes-
terday.
In total the struggling companies
owed £69.5m at the end of the second
quarter – a rise of 26 per cent com-
pared to the £55bn owed for the first
three months of 2010, according to
Begbie’s latest Red Flag Alert report
covering the second quarter.
Solid second
quarter for
UK economy
▲
UK ECONOMY
BY JESSICA MEAD
BRITAIN’S economy roared into life in
the second quarter of 2010, fuelled by
stronger than expected industrial
production data. Leading think-tank
The National Institute of Economic
and Social Research (Niesr) forecasts
that the economy grew by 0.7 per
cent in the three months to June.
It also revised up its estimate of
GDP growth in the three months to
May to 0.9 per cent from 0.6 per cent
as a result of revisions to official
industrial production data published
yesterday.
Meanwhile, the Office for National
Statistics yesterday said that industri-
al output rose 2.6 per cent in the
three months to May, its fastest
growth rate in more than 20 years.
The narrower manufacturing activity
measure rose by only 0.3 per cent on
the month, following a revised fall of
0.8 per cent in April.
David Kern, chief economist at the
British Chambers of Commerce, said:
“May’s small increase in output con-
firms that the manufacturing recov-
ery is on the right track. The new
figures leave manufacturing firmly
in positive territory when compared
Threadneedle Street keeps monetary IMF warns of contagion
policy unchanged again this month threat to the US economy
▲
UK ECONOMY
BY JESSICA MEAD
THE Bank of England this month held
interest rates, keeping monetary poli-
cy ultra-loose. Interest rates remained
at their historic low of 0.5 per cent
and the stock of asset purchases was
held at £200bn. Economists had
expected the Monetary Policy
Committee (MPC) to hold fire this
month and said it would have been an
enormous surprise had the commit-
tee chosen to do anything else.
Averages debts of trouble compa-
nies have surged 60 per cent to
£545,000 over the quarter – a statistic
Begbies believes suggests that the
post-recession stress is migrating out
of the SME sector to larger businesses.
Ric Traynor, executive chairman of
Begbies Traynor Group, warned that
once the coalition government’s fis-
cal tightening measures kicked in
from the first half of 2011 the num-
ber of insolvencies would rise.
“The levels of distress can be
expected to remain pronounced for a
number of successive quarters in line
with the experience of recessions
over the past 35 years, when the level
with a year ago.” Economists said this
was consistent with robust expansion
in economic activity in the second
quarter. BNP Paribas’ Alan Clarke
said: “It will require an absolute col-
lapse in output in June to prevent
industrial production from providing
a substantial addition to GDP growth
during the second quarter.”
But he warned that leading indica-
tors have begun to fall, suggesting
that the pace of expansion is unlikely
to be maintained much beyond the
middle of the year. “Hence although
second quarter GDP growth is likely
to be pretty good, that is about as
good as it is going to get.”
The Niesr also forecasts slower
growth ahead. “The UK economy does
face headwinds. Fiscal consolidation
both in the UK and the euro area will
restrict growth in the short-term and
there is clearly a risk that this rate of
growth will not be maintained
through the rest of this year,” it said.
BNP Paribas’ Alan
Clarke said that strong
second quarter growth
would be as good as it
was going to get
For now, it appears that concerns
about growth and fiscal austerity
measures have outweighed the issue
posed by sticky inflation.
Commerzbank’s Peter Dixon said:
“Although there are indications that
some members are increasingly con-
cerned about a pick-up in inflation,
we expect that the sharp tightening of
the fiscal stance outlined in the June
budget will act to keep rates on hold
for many months to come.”
More interesting will be the min-
utes released on 21 July, which will
of insolvencies grew strongly for two
to four years after GDP stopped
shrinking,” he said.
Begbies, which helps salvage strug-
gling companies, issued the report at
the same time as raising its final divi-
dend by 12 per cent to 1.9p, giving a
total payout of 3.1p for the year.
The company said activity levels for
the first two months of the new year
were slightly ahead of the last year.
Begbies maintained its outlook for
the current year.
In the year to the end of April,
Begbies reported an adjusted pre-tax
profit of £10.4m, compared with
£9.8m a year ago.
House prices slipped in June for the third month in a row, according to Halifax
House prices tumble 0.6pc in June to
mark third consecutive fall, says Halifax
▲
PROPERTY
BY JESSICA MEAD
HOUSE prices in the UK unexpectedly
fell by 0.6 per cent in June for the
third month in a row, trimming the
annual rise in property prices to 8.7
per cent last month.
The Halifax data comes just days
after rival mortgage provider
Nationwide reported that the rise in
house prices slowed to just 0.1 per
cent in June from 0.5 per cent in May.
This pattern is in line with our view
show whether any other members
joined Andrew Sentance in the hawk-
ish camp. He was the lone dissenter in
calling for a rate hike in June.
Simon Hayes at Barclays Capital
said: “We would expect Sentance to
have dissented once more. It is also
possible that one or more other MPC
members may have joined Sentance
in the hawkish camp. But our assess-
ment is that a majority of members
remains sufficiently concerned about
the robustness of the recovery that a
near-term rate hike is unlikely.”
Sovereign debt fears drag
business confidence down
▲
UK ECONOMY
ONGOING fears about the impact of
the sovereign debt crisis dragged busi-
nesses confidence down in June,
according to the latest Lloyds TSB
Corporate Markets Business Barometer.
The survey – a snapshot of business-
es’ views on their own performance
and wider economic prospects – shows
that firms are far less optimistic about
the economic outlook than last
month, largely as a result of the contin-
uing worries over the European sover-
that house prices will be broadly
unchanged over 2010 as a whole,
Halifax said.
The drop in prices disappointed
analysts, who had expected a 0.2 per
cent rise.
Howard Archer at IHS Global
Insight, said the fall added to a recent
flurry of soft data on the housing
market and stokes our relative pes-
simism over the housing market.
“Indeed, we increasingly suspect that
house prices will be only flat over the
rest of this year. We had previously
▲
WORLD ECONOMY
HIGH unemployment and a mori-
bund housing market have increased
risks to the US economic recovery,
while the public debt looms large and
needs to be cut, the International
Monetary Fund said yesterday.
In a statement after annual consul-
tations with US authorities, the IMF
raised its US growth forecasts slightly
to 3.3 per cent for 2010 and 2.9 per
cent for 2011, but said unemployment
would remain above nine per cent for
CITYA.M. 9 JULY 2010
eign debt crisis. The number of firms
saying that they are “more optimistic
now than three months ago” has
slipped 13 points to 47 per cent, while
the percentage that are more pes-
simistic has edged up three points to
27 per cent. This has resulted in an
overall confidence balance of 20 per
cent – a 16 point drop on the previous
month.
Despite this, the balance of firms
that believe their business activity will
pick up over the coming year has risen
four points to 35 per cent.
UK house
prices fall
0.6 per cent
in June
Annual rise
in property
prices 8.7
per cent
Picture: REUTERS
thought a small rise was possible.”
The Halifax survey provided evi-
dence that the increase in supply of
property to the market is exerting
some downward pressure on prices,
said RICS’ chief economist Simon
Rubinsohn.
He added: “The flatter trend in
pricing is consistent with our own
analysis which indicates that the sec-
ond half of the year is likely to prove
more challenging as the supply of
properties on the market begins to
catch up with demand.”
both years.
The lofty jobless rate, coupled with
a large backlog of home foreclosures
and high levels of negative home
equity, posed risks of a “double dip”
in the housing market, it said. But the
IMF said it did not think a renewed
recession was likely.
“The outlook has improved in tan-
dem with recovery, but remaining
household and financial balance
sheet weaknesses -- along with unem-
ployment -- are likely to continue to
restrain private spending,” it said.
CITYA.M. 9 JULY 2010
Connaught to
lose CEO and
finance chief
▲
PROPERTY
BY MARION DAKERS
THE CHIEF executive and financial
director of Connaught resigned yes-
terday, in another blow to the trou-
bled social housing group.
Mark Tincknell, who has been chief
executive for six months, stood down
immediately to recover from health
issues, but will remain with the com-
pany.
Tincknell will assist chairman Sir
Roy Gardner to find a successor, and
the firm has appointed head of com-
pliance Ian Carlisle to act as interim
chief executive.
Gardner has also initiated an inde-
pendent review of the group’s
accounting policy, following a sur-
prise profit warning last month that
led to Connaught shares shedding
two-thirds of their value.
“The firm has been using the same
accounting practice for long-term
contracts for ten years on the advice
of its accountants, but critics would
say it does not give shareholders the
clarity they want, so that’s why the
review is happening,” said a company
spokesperson.
Financial director Stephen Hill will
leave Connaught in October after
four years with the company.
Gardner said the outlook for
Connaught nevertheless remains pos-
itive. “The cost reduction programme
will realise significant savings whilst
providing a solid platform from
which we can achieve further
growth,” he said.
Analysts were less hopeful about
the firm’s future. Oriel Securities told
its clients: “This all leaves the group
in limbo. We’d be inclined to stay on
the sidelines until we have better clar-
ity of precisely what is under there.”
FAST FACTS | CONNAUGHT
● The social housing maintenance firm started
trading in 1982 as a concrete repair company.
● Its current order book stands at £2.6bn,
though the firm said last month revenues would
fall by £80m following public sector cuts.
Clockwise from top: chief exec
Mark Tincknell, finance director
Stephen Hill and non-executive
chairman Sir Roy Gardner
News 11
Carlyle buys up
£671m of White
Tower buildings
PROPERTY
▲
AMERICAN private equity group
Carlyle has snapped up six central
London properties for a total of
£671m, its first major purchase since
2008.
The properties were part of a port-
folio owned by entrepreneur Simon
Halabi, which was used to secure the
failed White Tower commercial mort-
gage-backed securities vehicle.
Carlyle said yesterday the proper-
ties generate around £62m in annual
rent from 1.6m sq feet of floor space.
The portfolio includes JP Morgan’s
offices at 60 Victoria Embankment
and Alban Gate, UBS offices at
Millennium Bridge House, Sampson
House and Ludgate House on the
South Bank and BSI Tower.
Robert Hodges, managing director
at Carlyle European Real Estate, said:
“This acquisition is a further example
of our strategy in Europe of making
long-term investments in landmark
assets in strategically important
European centres.”
The properties were put up for sale
in March, following the winding up
of White Tower in September, The
value of the properties had almost
halved by the time the securitisation
folded.
CBRE is overseeing the ongoing sale
of White Tower assets.
 12 Consumer News
Wiseman boosted by loyalty
▲
CONSUMER
BY JOHN DUNNE
ROBERT Wiseman Dairies yesterday
said first-quarter sales volumes rose
11.6 per cent over the last year –
fuelled by growth in business from
existing customers.
Alan Wiseman, who retired yester-
day, said: “Given our volume gains in
the previous year were concentrated
in June 2009, we would anticipate
reporting lower like-for-like growth in
volumes in subsequent periods this
AB Foods sees
a sales surge
from Primark
▲
RETAIL
BY HARRY BANKS
PRIMARK owner Associated British
Foods gave an upbeat update yester-
day saying its third quarter sales
jumped 13 per cent and that it expect-
ed very strong growth in annual earn-
ings, driven by its fashion discount
retailer. Its 198-strong Primark chain
reported sales in its spring quarter
rose 15 per cent, outperforming
many of its rivals and helped by a
strong line of floral print dresses,
court shoes and accessories in its key
markets of Britain, Ireland and Spain.
The food and retail group, which
also owns household brands
Kingsmill, Silver Spoon and Twinings,
did not give a like-for-like figure for its
16 weeks to 19 June, but house broker
Panmure Gordon calculated Primark
JJB Sports on the up despite England Tiso group goes back in
World Cup flops coming home early the black with IT move
▲
RETAIL
SALES at JJB Sports have soared in
recent weeks, despite England’s early
exit from the World Cup.
Like-for-like sales, which strip out
the impact of new store openings,
rose 22.3 per cent for the six weeks to
4 July compared with a year ago.
JJB, which sells England replica
kits, said that profit margins over the
year.”
Wiseman said its financial per-
formance had been satisfactory in the
first three months.
Although bulk cream returns had
remained stable as expected, plastic
and fuel costs were higher than last
year.
“The recovery of these additional
costs, and the objective to rebuild our
underlying operating margins,
remains of primary importance.
“Competition in the middle
ground sector is intense; however, the
sales growth at seven per cent, just off
from its first half eight per cent like-
for-like growth. The Primark stores
have coped with the downturn better
than most as its cheap designer
clothes have proved a hit with cash-
strapped shoppers. However, group
finance director John Bason urged
caution over the tough economy.
ANALYSIS l Associated British Foods
p pers flock to quality in times of
1,040 994.50
08 Jul
1,000
960
920
12 Apr 30 Apr 21 May 11 Jun
same period had also increased 43.9
per cent.
England lost 4-1 to Germany in the
first knock-out stage of the World
Cup on 24 June, but sales have still
performed well. JJB came close to
going into administration last year
but a successful £100m rights issue in
October allowed the retailer to pay off
its debts. The board has undertaken a
massive shake-up of the business to
company has been successful in
retaining volumes and will continue
to look to preserve its market share in
this area”, he said.
Plans to increase capacity to 500m
litres a year at the Bridgwater dairy
from November are on track, he said.
The company was also progressing
an £8m investment to double its fresh
filtered milk capacity and expected
the project to be completed by next
summer. An increase of 0.4p per litre
for Wiseman Milk Group supplies
was triggered on 1 July.
A rare growth story in these gloomy times
RECEIVED wisdom tells us that shop-
hardship. With less cash to spend,
punters buy fewer items that are
more likely to last.
Primark’s performance would
suggest otherwise. Sales in the last
sixteen weeks have climbed nine per
cent at constant currencies, and
Shore Capital estimates like-for-likes
are up seven per cent (ABF doesn’t
1 Jul
address the problems.
JJB also revealed yesterday that
sales at its newly-refitted Slough store
had increased by nine per cent above
the company average.
However, the group’s figures are
flattered by weak comparatives after
it was hit by a stock crisis when sup-
pliers became reluctant to deal with
the firm as it struggled with financial
woes.
William Hill celebrates as punter
loses £417,000 bet on Germany
▲
LEISURE
A BRITISH gambler placed the biggest
World Cup bet of all time on
Germany to beat Spain in the World
Cup semi-final – and lost.
The £417,000 wager – was placed
with William Hill’s telephone betting
service at odds of 10/11, meaning the
punter would have walked off with
just under £800,000 if Germany had
won.
William Hill spokesman Graham
list them in its third quarter
update).
It is also continuing to open new
outlets, even launching two new
stores in recession-strapped Spain,
where it hopes to pinch customers
from more upmarket rivals like Zara
and H&M. And thanks to its high
operational gearing, margins are
getting better despite higher fixed
costs, climbing 50 basis points to
RETAIL
OUTDOOR equipment specialist Tiso
Group has reported an increase in
profit driven by a new IT system
which improved its supply chain.
The Scottish retailer – which also
includes the Alpine Bikes and George
Fisher brands – saw turnover fall
slightly to £27m for the year to 31
January. However a pre-tax loss of
CITYA.M. 9 JULY 2010
Sharp admitted before the match
that a German win would be a disas-
ter, with the nation having received
huge backing.
After the game he said: “Not only
did the £417,000 bet lose, but so did
others for Germany to win the tour-
nament.” Meanwhile one Spanish
punter has bet £50,000 on Spain lift-
ing the trophy on Sunday.
The World Cup has proved a mas-
sive boost for betting companies with
record amounts of money wagered.
Primark has been
the star performer
for AB Foods
Picture: Micha
Theiner/CITY A.M.
around 11.5 per cent.
Sales growth will now slow down
some, as the company battles
against tougher comparatives. With
that in mind, its valuation of
around 13 times estimated 2011
earnings looks fair. Hold.
BOTTOMLINE
Analysis by David Crow
£100,000 was turned into a profit of
£1.2m.
During the period the company
completed its two-year strategic and
operational review. As well as a new
IT system it refurbished a number of
stores and paid down £1.6m of bank
loans to leave debt at £5.9m. Chris
Tiso, chief executive officer, said:
“This has been a strong performance
for the group.”
CITYA.M. 9 JULY 2010
News Corp denies
plans to offload
troubled MySpace
TECHNOLOGY
▲
BY STEVE DINNEEN
NEWS Corp has denied suggestions it
is trying to offload its $580m (£383m)
social network MySpace.
The firm’s digital chief Jonathan
Miller said there have been no discus-
sions to sell the site, claiming reports
to the contrary were “fabrications”.
He said: “We are definitely not in
any ongoing talks for a sale of
MySpace.”
Miller said News Corp is planning
another reinvention of the belea-
guered site with a relaunch expected
later this year. A year ago News Corp
executives talked about relaunching it
as an entertainment hub.
MySpace has fallen from being one
of the internet’s fastest growing sites
to an anachronistic weight around
Rupert Murdoch’s neck in just five
BT and TalkTalk to
fight piracy laws
TECHNOLOGY
▲
BY STEVE DINNEEN
BT AND TalkTalk will fight contro-
versial new anti-piracy laws in the
courts, they revealed yesterday.
The internet providers say the
Digital Economy Act, which was
rushed through parliament earlier
this year, will unfairly target their
users and could hurt their business-
es.
The “draconian” act could force
ISPs to disconnect users suspected
of repeatedly downloading copy-
righted material, and BT and
TalkTalk argue it could affect inno-
cent internet users.
They say the bill received “insuffi-
cient scrutiny” as it was passed dur-
ing “wash-up” – the period of time
Phorm issues £2m of new shares
for expansion in Brazil and China
▲
TECHNOLOGY
PERSONALISED advertising firm
Phorm yesterday announced it will
issue 1m new shares to institution-
al investors to provide a £2m war-
chest for its push into Brazil and
China.
The share placing was made by
Mirabaud Securities. Advising on
the placement – which will amount
to 6.4 per cent of all shares after the
issue – was Canaccord Genuity.
Phorm, which tracks people’s
internet habits in order to provide
tailored advertising, has recently
years.
Speculation abounds it will go the
same way as Bebo – also a once prom-
ising social network – which AOL is
close to selling for a fraction of the
$850m it paid in 2008.
MySpace has also lost several top
executives including co-president
Jason Hirschhorn last month.
Hirschhorn, with fellow co-president
Mike Jones, replaced former chief
executive Owen Van Natta just four
months earlier.
Its fate has been in stark contrast to
rival Facebook, which exceeded 500m
users this year.
• Will Lewis, the former Daily
Telegraph editor who earned plaudits
for breaking the expenses scandal, is
set to join News Corp as group general
manager. He will coordinate editorial
spending across the Times, Sunday
Times, Sun and News of the World.
between an election being called
and parliament being dissolved. It
was passed by 189 votes to 47 after a
two hour debate despite public out-
cry over its possible implications.
The two companies jointly filed
papers to the High Court on
Tuesday and hope to fix a date for a
hearing by late autumn.
Gavin Patterson, chief executive
of BT Retail, said: “It’s disappointing
that we feel the need to take action
but we feel we have no choice. We
BT Retail chief exec
Gavin Patterson says
his firm is taking the
issue to court to
protect customers
gained more contracts in Brazil and
was confident it would secure fund-
ing to develop the business.
The company, whose software
has faced opposition from privacy
groups, has focused its efforts on
Brazil, where in March it signed up
a string of internet service
providers and content providers to
roll out its service across the coun-
try. Similar attempts to expand in
the UK failed after meeting stiff
opposition.
Phorm said new contracts in
Brazil were pending, in addition to
those already signed with telecoms
News Corp digital chief Jonathan Miller says MySpace is not being sold
have to do this for our customers
who otherwise run the risk of being
treated unfairly.”
Charles Dunstone, chairman,
TalkTalk, said: “The Digital
Economy Act’s measures will cost
the UK hundreds of millions and
many people believe they are unfair,
unwarranted and won’t work.
Innocent broadband customers will
suffer and citizens will have their
privacy invaded.”
The act was designed to promote
Britain’s digital economy and pro-
tect the rights of content creators
such as musicians. The government
is standing by the law, claiming it is
in line with EU legislation.
Sky and Virgin have both backed
the act, which they say could help
them to curb piracy.
company Oi, newspaper publisher
Estado, ISPs UOL and iG and media
publisher Terra.
Phorm’s Chairman and chief
executive Kent Ertugrul said: “We
expect the pace of deployment in
Brazil to increase rapidly during
the second half of 2010 from the
existing modest coverage of sub-
scribers, and to begin serving rev-
enue-generating ads in the coming
months.”
The company reduced operating
losses to $29.7m (£18.4m) in the year
ending December 31 2009, from
$49.8m in 2008.
Technology News
Picture: GETTY
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More job cuts at Microsoft
Microsoft is set to lay off more staff just
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Kin phone. The software giant plans to
cut more jobs as early as this week. The
losses will be on top of 5,000
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The company said the internal team
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Microsoft’s forthcoming Windows
Phone 7 software.
Apple Mac sales rise 37 per cent
New research shows sales of Apple’s
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 14 News CITYA.M. 9 JULY 2010

Maersk lifts 2010 guidance HSBC runs the rule over

includes the world’s biggest contain- and have a degree of certainty about
potential Nedbank deal
▲

SHIPPING
er shipping company Maersk Line – how the third quarter is going, and
BY HARRY BANKS said in early March it expected a there are prospects for good utilisa-
DANISH group Moller-Maersk upgrad- “modest profit” in 2010. tion (of the fleet) in the peak season.” Nedbank, the fourth largest bank in

ed its earnings guidance for the full-
year, yesterday saying its container
shipping business had rebounded
faster than expected.
“The upgrade is due to a combina-
tion of (freight) rates and cost reduc-
tions,” chief executive Nils
Smedegaard Andersen said. “We have
taken $3bn out of the cost base on an
annual basis, and that makes us more
competitive.”
After diving to its first loss on
record in 2009, the group – which
“The improvement of especially
the container business has since
then been greater than envisaged
and the company now expects that
the profit for 2010 will exceed the
profit for 2008 (which was $3.5bn
corresponding to 17.6bn Danish
crowns at the time), provided that
freight rates, oil prices and the US
dollar exchange rate remain stable at
current levels,” it said.
Andersen added: “We know the
development in the second quarter,
The upgraded expectation includes
an accounting gain from a previously
announced sale of shares in the
Yantian port terminal in China which
has been closed, Maersk said.
The conglomerate’s sale of its Netto
Foodstores in Britain is still subject to
approval from competition authori-
ties, and a possible gain from that
sale has not been included in the new
estimate, Maersk said. In May, it
announced plans to sell Netto UK to
Asda, a unit of US retailer Wal-Mart.
▲
BANKING
HSBC is mulling the strategic sense of
making a bid for South Africa’s
Nedbank, majority owned by insur-
ance group Old Mutual, it emerged
yesterday.
HSBC has appointed investment
bank Lazard to advise on a possible
takeover, Sky News reported. The
emerging markets-focused group is
likely to have to stump up several bil-
lions of pounds to buy out Old
Mutual’s 54 per cent stake in
South Africa.
However, it is thought Old Mutual
would be reluctant to come to the
negotiating table. Nedbank is a
strong generator of profits, while Old
Mutual has already expressed a desire
to offload parts of its business else-
where in the world. The group said
earlier this year that JP Morgan had
been appointed to oversee a sale of its
US life insurance arm.
HSBC and Old Mutual both
declined to comment.

Babcock to
Hays has seen benefit from
City jobs rise budget cuts
since Easter

▲
DEFENCE
DEFENCE services group Babcock
International Group yesterday said it
had started the 2010/11 fiscal year
Hays chief executive Alistair Cox has seen growth in the private sector Picture: REX well and expected outsourcing
and healthcare,” said Venables. opportunities to increase as Britain
▲

RECRUITMENT
BY MARION DAKERS
PRIVATE sector growth is offsetting
cuts to public sector jobs, according
to recruitment giant Hays, though
fees earned in the UK fell six per cent
in the last three months to to 30 June.
In the UK, London still offers the
bulk of opportunities, but Venables
said growth had spread elsewhere in
the last quarter.
“The recovery has gone across the
whole of the home counties. The only
weaker areas in the recovery are in
ANALYST VIEWS: HOW IS HAYS COPING WITH looks to cut its budget deficit.
Babcock, which maintains Royal
THE CHANGES IN THE JOBS MARKET?
Interviews by Marion Dakers
Navy submarines, said it had a
healthy bid pipeline and its order
book had remained stable at £8.3bn.
“As the government seeks to
DAVID O’BRIEN | ALTIUM SECURITIES address the fiscal deficit in the UK,

The firm said the private sector had
seen a 10 per cent growth in net fees
since the last quarter, with strong
growth in City, pharmaceutical and
the north of England and Scotland,”
he said.
The firm has nevertheless cut con-
sultant numbers by two per cent in
“
we believe there will be an increase
in outsourcing opportunities in our
The downturn in the public sector continues to offset improvements chosen markets,” the group said in a
within the private sector. Cash flow remains strong, with the level of nebt debt statement yesterday.

corporate accounts recruitment.
The company’s operations in Asia
have seen a more pronounced recov-
ery, with like-for-like net fees up 28
per cent, boosting performance to
Britain, and spent £14m on redun-
dancies and restructuring its back
offices.
The company now has just under
4,500 consultants across 28 countries.
”
ahead of our estimates (although our forecast included the recent OFT fine). We Babcock, close to completing a
have not changed our estimates, target price or ‘hold’ recommendation. takeover of rival VT Group, said it
had begun work with VT’s manage-
ment team “in planning a speedy
CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE and efficient integration process”.

pre-recovery levels in all Asian offices.
This growth helped lift overall net
fees by eight per cent, with increases
in Germany, Australia and Brazil also
“
It said yesterday that non-UK business “We believe our major markets
now makes up 59 per cent of net fees remain attractive with significant
earned. The return to year-on-year growth is clearly a good sign. However long-term growth opportunities in
growth rates achieved are slightly disappointing compared to that reported by both the UK and overseas and that

contributing.
Worldwide growth meant the com-
pany has predicted year-on-year
growth for the first time since 2008.
Finance director Paul Venables
said: “Candidate confidence has
1100
”
ANALYSIS l Hays peers such as Robert Walters on Wednesday. From a valuation perspective, there these opportunities are considerably
p enhanced by the increased scale and
120 95.15 is better value in small cap stocks such as Harvey Nash. ‘Hold.’
8 Jul capabilities we expect the acquisi-
tion of VT to bring to the group,” it
IAN JERMIN | MERCHANT JOHN EAST SECURITIES added.
Babcock said that its proposed

“
increased. The acid test for us is often acquisition of VT has received all the
100
accounting and finance. The Hays has taken longer to exploit the move out of recessionary condi- necessary competition and regulato-
strongest areas globally have been in tions due to its focus on temp business and as such, together with its weaker bal- ry clearances, in both the UK and US.

”
the banking sector. 90 Shares in Babcock closed yesterday
“Even so, we continue to see good ance sheet, should be selling at a discount to Page and Walters at this stage. But at 62p, valuing the business at
levels of recruitment in education 12 Apr 30 Apr 21 May 11 Jun 1 Jul with visibility and confidence still very fragile, Hays' star could yet rise. around £1.5bn.

Bidders begin to circle ING’s coveted Stagecoach boss provides

property investment management unit £250k for heart checks
ed the bank to evaluate a sale as part investment manager in the world his overall pay has fallen more than
▲

FINANCIAL SERVICES
▲

BY HARRY BANKS
ING Group may need to break up its
world-leading real estate investment
management unit to conclude a time-
ly sale, with its bankers understood to
have begun flushing out prospective
buyers.
Morgan Stanley is thought to have
received a slew of expressions of inter-
est to take over ING Real Estate
Investment Management, just weeks
after the Dutch bancassurer mandat-
of a restructuring in the wake of its
€10bn (£8.4bn) state bailout.
The adviser is believed to have
asked for letters from potential bid-
ders confirming they were bidding
for the whole and you could demon-
strably show they could fund the bid.
About 10 letters are understood to
have been received.
Some of the world’s biggest fund
managers and institutional investors
are expected to log an interest to buy
the ING unit, the largest real estate
with around €66bn of assets under
management. AXA Real Estate, part
of Europe’s second-largest insurer
AXA and currently the second-biggest
real estate investment manager, told
a Reuters Summit last month it was
mulling a possible bid.
Other interested parties include
Allianz, asset managers Pramerica
and Henderson Global Investors,
Ameriprise Financial’s Threadneedle,
Blackrock Investment Management
and China Investment Corp.
BANKING
HEAD of transport group Stagecoach,
Brian Souter, waived £250,000 of his
pay packet to fund health check-ups
for its staff in its UK Bus division,
according to the firm’s annual report
issued yesterday.
Souter was awarded £762,000 for
the last financial year. Though he was
entitled to a performance-related
cash bonus, after a bonus freeze in
2009 was lifted, his donation to fund
heart-checks for bus workers means
30 per cent.
Fellow executive director Martin
Griffiths takes home £852,000 in
cash, benefits and deferred shares,
around £1,000 less than last year.
Non-executive salaries remained
frozen, taking total boardroom pay to
nearly £2m, representing a 14 per
cent annual drop.
The firm also said in the report its
pension fund lost £138.7m last year,
due to investment losses. The pen-
sions deficit stands at £201.1m.
CITYA.M. 9 JULY 2010
Ryanair to cut Dublin flights
as passenger traffic declines
last winter. The airline said it will
▲
AVIATION
BY HARRY BANKS switch these aircraft to other EU
countries, which it said have reduced
IRISH airline Ryanair said it would airport charges and scrapped govern-
cut its Dublin winter capacity by 15 ment tourist taxes. Ireland imposed a
per cent as passenger traffic falls, and €10 tourist tax last year.
again called for a tourist tax to be The Dublin cut comes after Ryanair
scrapped and airport charge increases said last month it would cut UK win-
to be reversed. ter capacity by 16 per cent from
Europe’s biggest low-cost carrier November, blaming the UK govern-
will cut its Dublin base to 12 aircraft ment’s Air Passenger Duty and
from 14 aircraft this winter and will adding the move would lower its
operate less than 850 weekly flights costs and boost profits.
from the airport compared to 1,000 Speaking at a news conference,
Stewarts Law
signs merger
with Masseys
▲
LEGAL
igation, antitrust and employment
BY EMMA SADOWSKI and is currently representing brokers
LITIGATION specialist Stewarts Law suing Commerzbank over unpaid
has acquired City banking disputes bonuses.
boutique firm Masseys. The City based firm has doubled
The merger, which is set to go live the number of partners in the last
next month, will see Massey’s found- two years, while revenue at the firm
ing partners Jane Colston and Sean has increased £11m to £20m over the
Upson alongside, Fiona Gillett and same period.
Fiona Stewart move their team to Managing partner John Cahill at
Stewarts to create a new 35 partner Stewarts said: “We are delighted that
law firm. Masseys will be joining us, they have
Massey’s, which was launched six a fantastic reputation and will add
years ago by a group of former Baker further strength and depth to the
& McKenzie lawyers, is known for its services we are able to offer to our
banking litigation practice in the City commercial litigation clients. During
and recently acted for Forum Global our discussions we were struck by the
Equity in its litigation against Bear extent of our shared values and
Stearns. vision. We will work together to estab-
The two will merge financially next lish Stewarts Law as a leading litiga-
month, with Massey’s lawyers joining tion brand”.
Stewart’s commercial litigation
department. Stewarts Law
Upson said: “We are proud of what managing partner
we have achieved at Masseys and are
now excited to be joining Stewarts
John Cahill will see the
Law to help them build their litiga- firm’s banking disputes
tion only brand.” business soar.
Stewarts advises on commercial lit-
CITY MOVES | WHO’S SWITCHING JOBS
Jones Lang LaSalle
The property-focused financial and professional
services firm has appointed James Brown from
Grosvenor as its new head of retail research
and consultancy for the EMEA region.
Brown is currently UK director of research at
Grosvenor, where he is responsible for property
market forecasting and analysis of demand,
supply and values, local market and catchment
and retail performance. He was previously head
of retail research at DTZ and Donaldsons.
Both join from Capco. Bedford will be
Ernst & Young responsible for building and leading the
Dai Bedford and Keith MacDonald have banking and capital markets operations
been appointed as partners in the in the division, while MacDonald will
accountancy firm’s EMEIA perform- help build up the operations and cus-
ance improvement practice. tomer side.
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
chief executive Michael O’Leary also
said Ryanair would “hang on” to its
shares in rival Aer Lingus, in which it
has a 29.8 per cent stake.
“Unless somebody comes along
and makes us a very generous offer
for the Aer Lingus shares, we have
every intention of holding on to
them,” he said.
Ryanair has said it could still bid
for Aer Lingus despite losing a legal
challenge to a 2007 veto by EU regula-
tors against its second attempt to buy
its rival.
BEST OF THE BROKERS
ANALYSIS l Provident Financial
920 p
850.00
900 8 Jul
860
820
12 Mar 30 Apr 21 May 11 Jun 1 Jul
PROVIDENT FINANCIAL
Numis has issued a “buy” recommendation
for Provident Financial and with the inter-
im results coming up it details what it
expects from the two core divisions: con-
sumer credit and Vanquis. Overall, despite
the current tough market conditions,
Numis said it expects the group interim
profits to be broadly flat.
To appear in Best of the Brokers email your research to notes@cityam.com
PT’s golden shares ruled illegal by EU
▲
TELECOMS
THE European Court of Justice ruled
yesterday that Portugal’s golden
share in Portugal Telecom (PT) broke
EU rules, opening the way to a possi-
ble conclusion of PT’s sale of its
Brazilian unit to Telefonica.
Portugal stunned investors last
week by using its golden share to
block a shareholder vote overwhelm-
ingly in favour of selling PT’s stake in
In addition, Mark Dynes and Kieran
Mullaley have also joined the practice
as directors. Mullaley was also from
Capco, while Dynes worked as a direc-
tor in financial services strategy con-
sulting at Deloitte.
Mizuho International
Mizuho’s London-based securities and
investment banking arm has hired Shu
Yang, Elliot Blair and James Godfrey to
its fixed income business.
Yang has become a government
rates trader, having previously worked
for Lehman Brothers. Blair joins in
August as a euro SSA trader from
Incapital Europe, while Godfrey will join
the team in September as a credit trad-
er from Daiwa Capital Markets.
Temasek sticks with Asia
after portfolio rises 43pc
▲
ASSET MANAGEMENT
SINGAPORE sovereign investment
company Temasek yesterday said its
portfolio rose 43 per cent year-on-year
to S$186bn (£88.6bn) at the end of
March, but has slipped since then in
line with soft global markets.
The eighth-largest sovereign wealth
fund in the world said 78 per cent of
its portfolio was in Asia as of the end
of March, up from 74 per cent a year
previously, and that it planned to
remain overweight on the region for
the forseeable future.
“Notwithstanding global re-adjust-
ANALYSIS l Total
46 € 38.14
8 Jul
44
42
40
38
36
34
12 Mar 30 Apr 21 May 11 Jun 1 Jul
TOTAL
UBS has raised its rating on Total to “buy”
noting that the oil group has stepped up
acquisition activity recently. Says its pur-
chase of a 20 per cent stake in the Fort
Hills project adds to Total’s critical mass in
the oil sands. Belives this is an important
improvement, although it has some reser-
vations in terms of the quality of the assets.
Vivo, Brazil’s top cellphone company,
to joint venture partner, Spanish peer
Telefonica, for €7.15bn (£6bn).
The Portuguese government said it
respects the court’s decision but will
look at ways to comply with EU law
that also safeguard national interests.
Some analysts interpreted the state-
ment as indicating the government
was likely to attempt to wring conces-
sions from Telefonica.
European Commission (EC) presi-
UniCredit Group
The German banking group has
appointed Peter Schaede as head of
German equity capital markets, effec-
tive immediately.
Schaede joined the firm in 2005 as
global head of execution and documen-
tation in the equity capital markets
team. Prior to that, he had worked as a
capital markets lawyer at Clifford
Chance.
Reynolds Porter Chamberlain
The City law firm has hired intellectual
property partner Clive Thorne from its
rival Arnold & Porter.
Thorne, who joins RPC’s IP, technolo-
gy and outsourcing group, has over 30
years of legal experience. He joined
News 15
ments, the growing middle income
populations in Asia and other growth
markets continue to offer significant
investment prospects in the longer
term,” Temasek said in its 2010 annu-
al report.
The closely guarded state agency
said it planned to allow financial
institutions to invest in wholly-owned
investment company SeaTown within
three to five years, the first step in
allowing public participation in
Temasek.
Earlier this month it emerged
Temasek has hired former minister
Baroness Vadera as a consultant.
ANALYSIS l Marks & Spencer
390 p
348.00
370
8 Jul
350
330
12 Mar 30 Apr 21 May 11 Jun 1 Jul
MARKS & SPENCER
Citigroup has given Marks & Spencer
(M&S) a “hold” rating and said in general
merchandise, M&S looks to be the benefici-
ary of trading up activity with its exposure
to a more confident older customer.
However, Citi notes that this older cus-
tomer was the first to enter the demand
slowdown in Apr to June 2008.
dent Jose Manuel Barroso, who is
Portuguese, said the ruling con-
firmed the Commission’s view that
golden shares distort the single mar-
ket. The EC has been on a drive to
abolish golden shares in the last five
years because it says they act as a bar-
rier to cross-border investment.
Tim Daniels, an analyst at Olivetree
Securities in London, said that
Telefonica would have to change its
offer, favouring the government.
Edited by Victoria Bates
Arnold & Porter as a partner in 2004
after 18 years as a partner at Denton
Wilde Sapte in London.
Talaris
The cash management solutions firm
has appointed a new chief executive in
the form of Tim Robinson.
Robinson, 46, was most recently
chief executive of private equity-backed
pensions and financial services group
Xafinity. He started his career at IBM,
where he spent 11 years progressing
through the ranks to director in the UK.
At Talaris, he replaces Tracey
Graham, who has led the business since
September 2005, including the Carlyle-
backed management buyout from De
La Rue.
 Markets&Investment
16 CITYA.M. 9 JULY 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 . . . . . . . . . . . . . . . . . . . . . . . .277.40* +4.80 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .125.40 +0.40 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .50.80 +1.55 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1230.00 +38.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 113.80* +1.60 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .539.00* +12.50 574.50 307.75 Jardine Lloyd Thompson. . . . . . .554.00 +16.00 604.50 399.00 Schroders N/V. . . . . . . . . . . . . .1019.00 +35.50 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .995.00 +14.50 1045.00 752.00 Cookson . . . . . . . . . . . . . . . . . . .423.60 +17.10 616.00 220.00 Johnson Matthey . . . . . . . . . . .1542.00* +17.00 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1181.00 +4.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .128.50 +3.20 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1091.00 +22.00 1095.00 535.00 Kazakhmys . . . . . . . . . . . . . . . .1061.00 +23.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .569.50 +10.50 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1468.00 +23.00 1483.00 863.50 CSR . . . . . . . . . . . . . . . . . . . . . .376.50 +2.40 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .126.70 –0.90 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .274.20 +5.20 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .106.40 — 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .457.50* +6.20 539.00 279.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .220.00 +1.70 255.00 179.90
Afren . . . . . . . . . . . . . . . . . . . . . .87.45 +0.95 111.00 48.50 Dana Petroleum . . . . . . . . . . . .1415.00 +6.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .132.40 +1.40 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .564.50 +5.50 656.50 394.30
African Barr Gold . . . . . . . . . . . .593.50 +7.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .374.10 +6.10 442.30 311.25 Lancashire Hldgs . . . . . . . . . . . .515.50 — 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1273.00* +23.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1545.00 +83.00 1545.00 492.50 De La Rue . . . . . . . . . . . . . . . . . .927.50* +7.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .587.50* +10.50 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .383.30 +12.30 426.50 285.25
Alliance Trust . . . . . . . . . . . . . . .313.00* +8.10 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .62.25 +2.25 91.95 51.95 Legal & General . . . . . . . . . . . . . .83.85 +3.05 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1428.00 +47.00 1526.00 818.00
AMEC . . . . . . . . . . . . . . . . . . . . .859.50 +12.00 891.00 603.50 Derwent London . . . . . . . . . . . .1305.00 +38.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .60.70 +2.51 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .104.50 +4.50 146.60 86.75
Amlin . . . . . . . . . . . . . . . . . . . . .408.00 +3.20 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .139.00 +1.10 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .107.10 +0.60 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .584.00 +6.00 700.50 435.25
Anglo American . . . . . . . . . . . .2412.00 +46.50 3015.50 1557.50 Diageo . . . . . . . . . . . . . . . . . . .1085.00 +24.00 1176.00 857.00 London Stk Exchange . . . . . . . . .586.00 +12.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1112.00 +33.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .851.50 +28.00 1100.00 568.50 Dimension Data . . . . . . . . . . . . . .93.90 –1.10 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1459.00 +33.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .412.00 +4.80 444.60 380.60
Aquarius Platinum . . . . . . . . . . .299.70 +5.50 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .399.40 –0.60 404.70 203.50 Man . . . . . . . . . . . . . . . . . . . . . .218.40* +1.30 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .791.50 +29.50 928.00 512.50
ARM Holdings . . . . . . . . . . . . . . .290.40 +9.80 362.40 116.00 Drax . . . . . . . . . . . . . . . . . . . . . .390.00 +0.20 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .348.00* +4.60 412.70 303.75 Spirax-Sarco Eng . . . . . . . . . . .1514.00 +36.00 1591.00 809.00
Arriva . . . . . . . . . . . . . . . . . . . . .767.00 +1.50 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.18 +1.23 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .316.30 +5.90 331.00 151.75 Spirent Comms . . . . . . . . . . . . . . 115.20 +1.00 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .253.10 +9.30 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .343.50 +2.90 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .225.50 +7.30 251.50 90.00
Astrazeneca . . . . . . . . . . . . . . .3184.00 +65.00 3262.00 2644.00 Easyjet . . . . . . . . . . . . . . . . . . . .409.50 +5.30 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .893.00* +3.00 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .108.80 –1.40 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .685.50 +11.50 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .394.10* +5.60 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .385.80 +17.20 461.50 231.75 SSL Intl . . . . . . . . . . . . . . . . . . . .861.50 +29.50 893.50 522.50
Autonomy Corp . . . . . . . . . . . .1900.00 +52.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .222.20* +5.70 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .437.00 +4.30 550.00 300.90 St James’s Place . . . . . . . . . . . . .234.80 +5.80 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . .1240.00* +41.00 1248.00 666.50 EnQuest . . . . . . . . . . . . . . . . . . .101.90 — 112.70 87.35 Millen & Copthorne . . . . . . . . . . .430.00 +12.30 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .182.90 +1.50 204.90 123.50
Aviva . . . . . . . . . . . . . . . . . . . . .338.30 +5.20 474.00 274.75 Essar Energy . . . . . . . . . . . . . . .448.30 –5.90 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .244.20 +5.60 281.70 165.25 Standard Chartered . . . . . . . . . .1694.50 +1.00 1847.00 1119.00
Babcock International . . . . . . . . .624.50* +5.50 660.50 448.50 Eurasian Nat Res . . . . . . . . . . . .865.50 +13.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .295.60 +5.10 343.90 228.30 Standard Life . . . . . . . . . . . . . . .186.90 +4.50 237.00 170.00
BAE Systems . . . . . . . . . . . . . . .320.50 +2.80 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .586.50* +11.00 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .217.60* +2.10 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .820.00 +15.00 825.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .246.40 +4.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .597.00* +8.00 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .399.80 +13.80 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .120.40 +0.20 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .302.00 +10.40 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .93.25 +0.25 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .287.40* +4.40 321.20 222.00 Talvivaara Mining . . . . . . . . . . . .388.00 +9.90 501.50 321.50
Barratt Development . . . . . . . . . .102.10 +3.30 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .269.30 +15.40 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .281.10 +1.40 306.30 241.00 Tate & Lyle . . . . . . . . . . . . . . . . .480.00* –4.10 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .191.10 +2.30 220.00 110.00 FirstGroup . . . . . . . . . . . . . . . . .381.90 +7.20 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .846.50 +11.50 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .27.38 +0.57 54.90 24.29
Beazley. . . . . . . . . . . . . . . . . . . . 118.90 +1.50 124.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .270.90 +6.60 297.20 210.25 National Express. . . . . . . . . . . . .231.40 +7.40 256.80 135.99 Telecity . . . . . . . . . . . . . . . . . . . .393.90 +16.90 455.00 298.00
Bellway. . . . . . . . . . . . . . . . . . . .624.00 +24.00 927.50 580.50 Fresnillo . . . . . . . . . . . . . . . . . .1060.00 +28.00 1115.00 438.00 National Grid . . . . . . . . . . . . . . .502.00* — 607.65 469.37
Berkeley . . . . . . . . . . . . . . . . . . .833.00 +15.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .266.00 –1.00 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2070.00 –5.00 2360.00 1501.00 Templeton Emrg Mkts . . . . . . . . .536.50* +5.50 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1086.50 +11.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .456.00 +2.50 484.00 370.00 Northumbrian Water . . . . . . . . . .322.60 +4.30 326.10 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .393.95* +1.80 454.90 347.60
BHP Billiton . . . . . . . . . . . . . . .1819.00 +30.00 2346.00 1274.50 GKN . . . . . . . . . . . . . . . . . . . . . .127.00 +5.70 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . . 113.10 +3.80 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .189.10 +7.80 277.20 172.30
BlackRock Mining . . . . . . . . . . . .543.00 +4.00 654.50 346.00 GlaxoSmithKline . . . . . . . . . . . . 1142.00* +24.50 1347.00 1064.50 Partygaming . . . . . . . . . . . . . . . .236.20 +5.90 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .230.30 +4.50 261.10 141.75
Booker . . . . . . . . . . . . . . . . . . . . .41.27* +0.21 49.50 33.00 Great Portland Estates . . . . . . . .300.30 +11.30 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .907.00 +25.50 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .783.00 +12.00 915.00 539.00
BP . . . . . . . . . . . . . . . . . . . . . . .367.00 +4.95 658.20 296.00 Greene King . . . . . . . . . . . . . . . .436.50 +7.60 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .573.00 +1.50 582.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .221.10 +4.80 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .907.00* –18.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .523.50* +10.00 562.50 307.00 Persimmon . . . . . . . . . . . . . . . . .388.00 +13.40 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .343.00 +10.40 436.20 261.20
British Airways . . . . . . . . . . . . . .205.40 +6.40 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .283.30 +6.10 287.40 184.00 Petrofac . . . . . . . . . . . . . . . . . .1246.00 +37.00 1294.00 633.50 Tullow Oil . . . . . . . . . . . . . . . . . 1130.00 +22.00 1375.00 834.50
British Amer. Tob . . . . . . . . . . . 2211.00 +38.50 2335.50 1676.00 Hammerson . . . . . . . . . . . . . . . .357.70 +10.30 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . .1215.00 +21.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .80.00 — 84.90 62.25
British Empire Tst . . . . . . . . . . . .422.10 +7.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .335.00 +9.50 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .235.00 +12.00 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1571.00 +7.00 1678.00 1094.00
British Land . . . . . . . . . . . . . . . .456.60* +3.50 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .95.15 +4.60 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1415.00 +12.00 1437.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1827.00 +29.00 2024.00 1422.00
Britvic. . . . . . . . . . . . . . . . . . . . .501.00 +3.00 505.00 286.25 Henderson . . . . . . . . . . . . . . . . .125.70 +3.80 157.80 87.75 Provident Financial . . . . . . . . . . .851.00 –7.50 986.00 763.00 United Utilities . . . . . . . . . . . . . .548.00* +9.50 575.00 429.00
Brown(N.) . . . . . . . . . . . . . . . . . .251.70* +3.10 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .430.00 +5.00 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .518.00 +16.50 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .694.50 — 732.00 464.50 Hikma Pharma . . . . . . . . . . . . . .712.00 –3.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .347.50 –3.50 356.40 198.00 Utd Business Media . . . . . . . . . .517.00 +15.00 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .136.00 +1.10 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .349.00 +0.70 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .125.30 +1.10 179.10 113.90 Vedanta Resources . . . . . . . . . .2264.00* +46.00 2967.00 1264.00
Bunzl . . . . . . . . . . . . . . . . . . . . .691.00 +16.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .318.10 +3.60 370.60 220.00 Randgold Resources. . . . . . . . .6245.00 –40.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1158.00 +22.00 1193.00 555.50
Burberry . . . . . . . . . . . . . . . . . . .787.00* +28.50 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .226.80* +0.90 336.50 208.50 Reckitt Benckiser . . . . . . . . . . . 3116.00 +6.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .143.30* +1.40 153.80 111.90
Cable & Wire Comms . . . . . . . . . .60.00* +1.00 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2104.00* +29.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .516.50 +6.50 548.00 403.75 VT . . . . . . . . . . . . . . . . . . . . . . .795.00† — 799.00 416.00
Cable & Wire Wwide . . . . . . . . . . .87.65* +0.05 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .623.20* +8.50 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .73.05 +2.15 125.50 61.00 Weir . . . . . . . . . . . . . . . . . . . . . 1159.00 +31.00 1183.00 437.50
Cairn Energy. . . . . . . . . . . . . . . .453.80 +12.40 460.50 306.80 Hunting . . . . . . . . . . . . . . . . . . .481.70 +17.70 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . . 110.80 +3.70 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .414.90 –2.10 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1610.00 +10.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .420.00 +5.00 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.00 — 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1405.00* +35.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .744.00 +8.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .470.00 +7.60 473.00 261.25 Rexam . . . . . . . . . . . . . . . . . . . .305.40 +9.60 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .175.70 +2.00 217.80 160.50
Capital & Counties . . . . . . . . . . . 110.00 +1.10 125.40 99.60 Imagination Tech Gp . . . . . . . . . .308.70 +16.80 311.60 132.50 Rightmove . . . . . . . . . . . . . . . . .628.00 +11.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .433.00 +6.20 487.00 329.50
Capital Shopping Centres . . . . . .320.50 +6.90 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .719.50 +22.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3073.50 +37.50 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1385.00 +26.00 1742.00 1026.00
Carillion . . . . . . . . . . . . . . . . . . .318.20 +4.00 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1884.00 +2.00 2159.00 1575.00 RIT Capital Partners . . . . . . . . .1210.00 +6.00 1215.00 890.00
Carnival . . . . . . . . . . . . . . . . . .2200.00 +18.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .267.50 +11.60 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .581.50 +15.50 631.50 346.50 Wood Group (John). . . . . . . . . . .342.20 –2.10 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .361.20 +6.20 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .364.90 +8.80 439.40 217.75 Rotork . . . . . . . . . . . . . . . . . . .1367.00* +37.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .647.00 +17.50 744.00 380.50
Centamin Egypt . . . . . . . . . . . . .157.00 +4.40 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .735.50 +4.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .44.36 +1.53 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .936.00 +26.60 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .308.20 +0.70 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1114.00 +14.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1741.50 +62.50 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .26.92 +0.72 86.00 21.00
Charter Intl . . . . . . . . . . . . . . . . .657.00 +15.00 855.50 406.50 Intermediate Capital . . . . . . . . . .264.20 +5.00 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1667.00 +64.00 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . . 3011.00 +50.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1575.00 +54.00 1585.00 1024.00 RSA Insurance . . . . . . . . . . . . . .124.00 +1.50 142.00 113.10
Chloride Group . . . . . . . . . . . . . .371.50* +2.00 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .314.90 +4.90 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1946.50 +53.50 2090.00 1210.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .689.50 +3.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .258.80* +6.40 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .235.70 +4.30 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .226.30 +2.50 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .465.30 +11.20 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .341.00* –3.30 373.00 307.60 www.interactivedata.com

YOU READ HIM DAILY, NOW

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Allister Heath gives his views on the market and economic situation
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Bidding war for state’s banking assets Wall Street up for third
boosts FTSE 100 as financials rally day as retail sales cheer
gainers, led by state-backed Lloyds lenders. The Dow rose more than one per

THELONDON Banking Group and Royal Bank of

Scotland, up 4.3 and 4.0 per cent
“A number of factors have com-
bined to improve risk appetite over THENEW YORK cent, bolstered by late-day buying.
Consumer staples were the S&P’s

REPORT
respectively after reports that two
senior British banking figures have
joined forces to back a new bid vehi-
cle which will list on the London
the past few days,” said Michael
Hewson, analyst at CMC Markets.
“As far as the UK is concerned there
is little concern about UK banks as
REPORT best-performing sector, with Costco
Wholesale rising 2.6 per cent at
$55.71. The sector gained 1.5 per cent.
The Dow Jones industrial average

B W
ANKS lifted Britain’s top shares stock market and look to purchase they have already passed much more ALL STREET rose for a third was up 120.71 points, or 1.20 per
yesterday, with Royal Bank of British banking assets. stringent tests, which had been previ- straight day yesterday as cent, at 10,138.99. The Standard &
Scotland and Lloyds Banking Lloyds was also helped by a Bank of ously done by the UK authorities investors were encouraged Poor’s 500 Index was up 9.98 points,
Group top performers on America Merrill Lynch note, which some time ago.” to see jobless claims fall and or 0.94 per cent, at 1,070.25. The
reports that a new bid vehicle will reiterated its stance that the Lloyds Meanwhile, Credit Suisse raised its a handful of large retailers report Nasdaq Composite Index was up
seek to buy British banking assets. share price would double over the weighting on European banks to solid sales. 15.93 points, or 0.74 per cent, at
The FTSE 100 index was up 90.63 next two years. benchmark from 10 per cent under- Stocks have regained their footing 2,175.40.
points, or 1.8 per cent, at 5,105.45, ris- Fears over the bank sector’s expo- weight in a global equity strategy after a slew of poor data had raised About 8.1bn shares traded on the
ing for a third consecutive day. It sure to Europe’s sovereign debt crisis note on Wednesday. fears of a double-dip recession. But New York Stock Exchange, the
closed up 49.82 points, or one per were also soothed as European super- Adding to bullish sentiment, US low market volume suggested American Stock Exchange and
cent, on Wednesday. visors shored up some confidence in peer State Street increased its profit investors are still skeptical, and few Nasdaq, well below last year’s esti-
Banks were among the biggest the stress tests they are imposing on forecast on Wednesday. expect to see a sustained rally. mated daily average of 9.65bn.
CITYA.M. 9 JULY 2010
Safeguard your possessions
Don’t underestimate
how much your
possessions are worth,
says Jessica Mead
F
ROM “an Englishman’s home is his
castle” to “keeping up with the
Joneses”, there are plenty of old
adages evoking Britons’ love for their
houses and their possessions. Combine
this with our customary practice of
preparing for the worst and you might
think that we would be rather conscien-
tious about insuring our homes and their
contents.
Not so, according to a recent study con-
ducted by online comparison website
Moneysupermarket.com. In fact, it reck-
ons that nearly 1.5m homeowners are put-
ting their properties at risk with
inadequate cover and 250,000 have no
cover at all for their homes. The survey
also shows that London and the South
East are the least protected areas.
Julie Owens, head of home insurance at
moneysupermarket.com says that not hav-
Store up your
miles to jet
off on holiday
Verity Pugh looks at some of the
best airmiles credit cards on offer
C
REDIT cards can offer a whole range of
rewards, from shopping vouchers to
money off your bills. For City workers
who are frequently jetting off on busi-
Keep your home well
protected
ing any cover at all is taking a huge unnec-
essary risk – problems such as subsidence,
Picture: GETTY
burst pipes, personal liability and even
boiler breakdown in some cases could
land you with a bill well into the thou-
sands of pounds, she warns.
Most mortgage providers require you to
take out buildings insurance as a condi-
tion of your loan but there is no legal
requirement to take out contents insur-
ance. The vast majority of people – 80 per
cent – who buy insurance take out a com-
bined buildings and contents policy, says
Darren Black, head of home insurance at
Confused.com. In the event of a burst
pipe, which would require claims on both
buildings and contents policies, it is vastly
easier to deal with just one insurer.
But how much should you insure your
home and its contents for? Most buildings
insurance policies ask you to estimate the
cost of rebuilding your home – a question
which baffles most. Confused.com esti-
mates that 90 per cent of people put in the
market value of their homes, usually a
gross overestimate. On its website, there is
a calculator which can help you value the
rebuild costs more accurately.
In contrast, most people really underes-
timate how much their contents are
worth. Black says that about 60 per cent of
ness, there are great opportunities to
store up airmiles to be redeemed on
flights for your next holiday. Here are
three of the best at offering air travel
rewards.
VIRGIN ATLANTIC WHITE CARD
This card offers
the reward of
3000 Flying Club
Virgin miles on
your first pur-
chase, You then
get one Flying
Club mile for
every £1 spent using the card. Also,
when you spend more than £15,000 in
one year, there are companion reward
flights available.
The drawbacks are that there are no
introductory offers on purchases, there is
an interest rate of 17.9 per cent on all pur-
chases and balance transfers from MBNA
cards are not allowed. However, if you are
organised with your payments then you
can receive 46 days worth of interest free
credit on purchases.
Investment | Personal Finance
people will value their possessions at
around £20,000-£25,000. In reality, the
average house has around £50,000 worth
of contents, of which £8,000 is stored in
the wardrobe alone. Contrary to popular
opinion, most claims are because of flood-
ing or water leakages rather than theft.
This can damage hardwood floors, soft fur-
nishings and possessions, which would be
included in your contents insurance.
If you have a number of expensive high
risk items – ie, those that an insurer
deems likely to either get broken or stolen
– you must make sure you list all your
high-risk items such as an entertainment
system when you apply for the policy. For
example, men’s watches are rarely listed
but can be very expensive.
It is also worth asking prospective insur-
ance providers about individual single
item limits. This can vary, says Black who
notes that Hiscox is the premium
provider: “It has an excellent claims expe-
rience and customer account manage-
ment but it would be one of the more
expensive providers out there.” Other well-
regarded insurance providers include
Lloyds TSB and Saga (which does quote for
everybody, not just for retirees).
If the worst does happen, having insur-
ance provides at least some comfort.
LLOYDS TSB AIRMILES DUO CARD
The bonuses with
this card are that
it has the lowest
APR rate of the
three on this page,
at 15.9 per cent.
Other benefits
include the 0 per
cent fee on balance transfers for six
months, however this comes on condi-
tion that you spend at least £100 in the
first three months. After the six month
period, this balance transfer fee also hikes
up to 3 per cent, so is not as convenient
for flexibility.
The duo card system means you receive
one Mastercard which gives one airmile
for every £50 spent and one American
Express card which gives one airmile for
every £10 spent. While this may seem a bit
excessive to have two cards, the idea
behind the scheme is that when spending
in places that do not accept Amex cards,
you can continue to reap your airmile
rewards with the Mastercard.
There is also currently a prize draw run-
17
PERSONAL
FINANCE NEWS
BY VERITY PUGH
MILLIONAIRE PROPERTIES ARE BACK
According to new research from Santander
Mortgages, Britain has seen a 393 per cent
increase in the number of property million-
aires since 2000. While 43,000 homes lost
their value to take them under the £1m
mark during the credit crunch, the numbers
have risen again to nearly 147,000, the
level they were during the peak in early
2008. The research also uncovered that
around 78 per cent of these homes worth
over £1m are in Greater London. While SW
postcodes unsurprisingly claimed the
largest percentage of the nation’s million-
aire properties, SE postcode areas also
showed a promising 23-fold increase in
property millionaires in the last decade.
Most positive for the property market is
that the number of prospective buyers for
these properties has risen 20 per cent.
AEGON LAUNCHES SIX PROTECTED FUNDS
Six new protected funds have been
launched by Aegon Ireland. The funds aim
to provide equity exposure while retaining a
level of capital protection. Aegon offers
exposure to equity markets such as Japan,
Asia and North America as well as emerg-
ing markets worldwide. All six funds
include constant proportion portfolio insur-
ance (CPPI), meaning the equities and cash
that are being invested in are constantly
shifted, providing a minimum level of pro-
tection. Aegon’s David Aaron says the fund
would be aimed at customers who seek
returns from equity investment, but who
are reassured by the security of capital pro-
tection.
SUCCESS OF FUNDS OF HEDGE FUNDS
Standard & Poor’s Fund Services’ latest
review has found that funds-of-hedge-funds
(FOHFs) managers have built on the
absolute performance in the second half of
2009 and continued to improve liquidity in
portfolios. S&P Fund Services’ lead analyst
Randal Goldsmith said he thinks that the
success is down to limiting investment to
the more liquid strategies and Ucits III-reg-
ulated products. On the back of this, S&P
Fund Services has launched a new fund
group within its FOHFs’ Directory, which
contains five Ucits III-regulated funds-of-
funds as well as a UK-authorised fund-of-
alternative-investment-funds (FAIF).
BRITONS FUNDING HOLIDAYS WITH DEBT
Britons are choosing to stretch their wal-
lets to go on holiday this summer with a
third racking up debt to fund their get-
away, a survey from Bright Grey has found.
Over half do not have the money readily
available to repay their debtors straight
away, meaning they could face additional
interest payments. Nearly one in seven
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flight you redeem your miles on if you
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 Living
18
Go back to school...
this time in style
There is no need to settle when hunting for
old converted properties, writes Juliet Samuel
E
STATE agents love taking on “conver-
sions” – it allows them to market the
“authenticity” of a property. But what
does a conversion actually offer
buyers?
One of the advantages, says Anup
Pankhania of Jaspar Group, a property con-
versions business, is that “you’ve got a spec-
tacular spaces you’d never get anywhere
else”. He’s referring to features like high,
vaulted ceilings and original craftwork
found in old chapels and Victorian-era
schools. But you need to make sure the
developer that took over the building knew
what they were doing: “The buildings are
almost ill when they come to us and we've
got to give a lot of TLC to get them back up
to scratch,” he says.
One should also remember that convert-
ed properties still exist in their original set-
ting and style. A brochure for a “warehouse
conversion” might sound classy but if you
don’t like retro industrial-style architec-
ture, it might actually look like little more
than a drab brick building.
Buyers of conversions need to be pre-
pared to revel in the quirky aspects of living
in one, like mezzanine bedrooms and
exposed brick walls. Conversions without
CITYA.M. 9 JULY 2010
| Conversions
these features are unlikely to hold their
value as historical buildings. Simon Stone,
of estate agent Davey Stone, says: “There’s
nothing more soul-destroying than going
to see a conversion and finding that it has
fully-plastered walls. When a developer THE GALLERIES, BRENTWOOD OLD COACH HOUSE, TOWER BRIDGE
doesn’t give any character, it’s a bit of a let- Price: £250,000 to £499,950 Price: £1.6m
down. If you’re going to go for a conversion, These Grade II listed Victorian hospital buildings This 1,912 sq ft coach house conversion retains all its
definitely make sure you’ve got some origi- have been converted into a collection of high quality original character but with modern fittings. The
nal brick-work and floorboards.” apartments. Each has a bespoke kitchen featuring freehold property retains beautiful vaulted wooden
And though it might take some search- integrated stainless steel appliances. Contact: 01277 ceilings. Contact: 020 7407 3173.
ing, there is no need to settle: England has 202 122. www.the-galleries.net www.hamptons.co.uk
no shortage of beautiful old buildings.
CONVERSIONS | TIPS
l Be aware that heating costs can be high in
older conversions – all that exposed brick can
have its price.
l Even more than with other buys, it is impor-
tant to have a full survey done on a converted
property to make sure there are no nasty
maintenance surprises.
l In particular, check the roof is watertight.
THE CHAPEL,
WIMBLEDON
Price: £1,299,950
This converted chapel, lovingly
restored by specialists Jaspar
Group, features a mezzanine
bedroom with its bed set ARCADIAN PLACE, PUTNEY OLD SCHOOL HOUSE, LONDON FIELDS
against the old church organ Price: £575,000 Price: £449,995
and modern fittings built Previously Wandsworth Boys' School, this 1930s This apartment in a Victorian school conversion fea-
around the original pews. It building was refurbished to comprise a series of tures a mezzanine bedroom that makes the most of
Classic
also has a private patio garden. stunning two-bedrooms maisonettes split over two the high ceilings and huge windows. The exposed
Contact: 020 8946 0026. floors, with access to courtyard gardens. Contact: brickwork and feature radiators add to the charm.
www.knightfrank.com 020 8780 0077. www.hamptons.co.uk Contact: 020 7275 7505. www.daveystone.com
A Modern
The Galleries offers a wealth of period features
complemented by beautiful courtyard gardens and all
within commuting distance of the City.
1, 2 & 3 bedroom conversion apartments
priced from £250,000 to £525,000
Call: 01277 202122
Open daily 10am – 5pm
Virtual Tour: www.the-galleries-net
The Galleries, Pastoral Way,
Brentwood, Essex, CM14 5GF
 Yes, you can afford
to live here
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20 Living | The Knowledge
INTERIORS
Andrew
Dunning
HEAD DESIGNER,
APD INTERIORS
Dear Andrew, we have a
Q. spare room and I would like
to turn it into a home office.
Can you give me some advice?
A.
First, consider how you want to
use the room. If you regularly
have guests staying and need a
study space away from the main bed-
room or living room, your needs will be
very different than if you want to create
a proper study space that can be turned
into a bedroom on the odd occasion.
Think about what you need from the
study space as well. Is it essential that
you have a desk or do you just need a
quiet space and a comfortable chair for
reading?
Well thought-out storage is essential
and you should be ruthless with your
clutter. High-level shelves are a good
way to keep the floor clear for furniture
and your files out of direct sight. If you
do need to have your storage on display,
try to organise it to ensure the room
looks ordered when being used as a bed-
room.
Consider the services you need in the
room – is a telephone line required, do
you need power sockets for a computer?
In terms of office furniture, there are
some off-the-shelf solutions. For exam-
ple, Study Bed provides furniture with
an integrated desk and bed that con-
verts in a matter of seconds – this is a
good option if space is limited.
Alternatively, if the room has an
alcove, you could situate the office space
there – have a desk between the walls,
shelves above and use floor-to-ceiling
doors to hide the office when you aren’t
using it.
Any desk will need a good quality
chair – don’t think you can just use one
from the dining room when needed. As
you are going to spend a few hours sat
at your desk, consider purchasing a good
quality, supportive office chair.
If your priority is more office than
bedroom, use a daybed rather than a full-
size bed. The daybed can be covered with
cushions to provide additional seating
during the day but secretly houses anoth-
er mattress underneath to provide a dou-
ble bed when needed.
Decorate the room in subdued colours
– a bright interior does not tend to
induce a calm working mood. But hang
nice artwork and decorate it with care –
remember that the workspace has to be
somewhere you want to spend time.
Dear Andrew, I am thinking
Q. about replacing my bathroom,
which is looking rather old
and tired. How do I go about this?
A.
Start by making a plan of your
existing bathroom. This includes
measuring the space and noting
where the services are – ie, water inlet
and waste pipes. While the new layout
does not need to be the same, bear in
mind that moving the existing plumbing
and drainage can significantly add to the
cost of the project even if it does open up
new possibilities.
Bathrooms are often one of the small-
est rooms in the house so think carefully
about the fittings and their practicality.
Many compact fittings are now available,
so consider a smaller sink if space is
tight. If you do have the space to be
indulgent, then choosing a larger bath
adds a sense of luxury. The standard size
is 170cm but larger ones are available
and a double-ended one would make it
ideal for sharing. If the bath is also to be
used for showering then you can buy
ones that have more room at one end.
A wall-hung WC is a good option if
you are concerned both about space and
cleanliness. It should be installed using a
purpose-built frame and strong bolts –
the cistern will be hidden in the frame,
making the room appear more spacious.
But remember, you will need to access
the cistern from time to time.
FOCUS ON: CHISWICK, W4
CITYA.M. 9 JULY 2010
Good storage is
essential in a bathroom
Q&A
and if you have the budget, then bespoke
cupboards offer the best solution. If the
walls allow, consider creating niches to
store some of your toiletries in the bath
area. But think about what you want to
store – toiletries are obvious but what
about towels and cleaning products?
Having storage will ensure the bathroom
is less cluttered and a calmer room.
When it comes to tiling, there is a huge
selection available. As a rule, large tiles
will help to make a small space look big-
ger and mosaics work well if used in
small quantities. If you choose a natural
stone tile, ensure it is sealed before use.
Don't feel like you have to tile the whole
room – using bathroom-rated paint on a
couple of walls creates a softer look.
Good lighting is essential and often
one fitting is not enough – you will proba-
bly need lighting that illuminates you
when stood in front of the mirror. But
remember that all lighting needs to meet
building regulations.
If you are planning from absolute
scratch, then underfloor heating is a
great thing to consider, especially if you
have a tiled floor. For an average sized
bathroom, an underfloor heating kit will
cost less than £200 with running costs
of a few pence per day. This is often suffi-
cient heating but can be supplemented
with a heated towel rail. Try to include
one with a summer heating element
since you can then use the rail even when
the heating is turned off.
Finally, adding a heated mirror is
another affordable but very effective lux-
ury. The heating pad can be placed
behind most mirrors – have it wired in by
a qualified electrician – and the glass
won’t steam up after a hot shower.
Andrew Dunning is head designer at
APD Interiors, an interior design con-
sultancy, www.apdinteriors.com.
Follow his design tips on Twitter:
@andrewdunning
BY VERITY PUGH
PRIORY ROAD
Price: £830,000
This is a four-bedroom house with a
kitchen/dining room, reception room,
two bathrooms (one en-suite) and a
garden. Chiswick Park, South Acton
Tube and rail stations are a 10
minute walk. It is just a short dis-
tance from Acton Green common.
Contact: Savills on 020 8987 5550,
www.savills.co.uk
DEVONSHIRE GARDENS
Price: £649,950
This two-bedroom flat is well-located
on a residential avenue. It has a
reception room with bay window, a
modern kitchen and a private patio.
Nearby are Chiswick Rail and Kew
Gardens Tube stations. The river is
also close, as are several shops and
restaurants. Contact: Foxtons on
020 8996 6000, www.foxtons.co.uk
SUTTON COURT ROAD
Price: £495,000
A first-floor flat in a converted
Edwardian house, it has two bed-
rooms. It has been fully refurbished,
but retains a period feel. It is near to
Chiswick Park Tube and Chiswick
mainline station – about 45 minutes
from the City.
Contact: Winkworth on 020 8994
7096, www.winkworth.co.uk
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 City Focus
22 CITYA.M. 9 JULY 2010

| Going it Alone

INSURANCE
Bringing panache to lunchtime Q.
What are the basic
kinds of insurance
required of a small
business?
Q&A
Mark Lilley made the jump from
A.
Business insurance requirements
corporate financier to feeding the depend on the firm’s type, but at the
bare minimum you will require public
liability insurance, business motor insurance
City. Kathleen Brooks meets him. and liability insurance for any employees.
While public liability insurance isn’t necessar-
ily legally mandated, most serious businesses

T
HE eureka moment for a new busi-
ness idea can strike at any time. For
Mark Lilley it was while he was eat-
ing fresh sushi with his wife in
downtown Sydney in the middle of a
round-the-world trip in 2002. The result
was a ticket home and opening Abokado, a
cross between a sushi bar and a European
sandwich shop, in Drury Lane in 2004.
“For a week in Sydney we ate these sushi
rolls that had western fillings. You just
couldn’t find anything like that in
London,” says Lilley. Abokado’s speciality is
the Shwrap – a western filling in a hand-
held rice roll. The shops are an abundance
of health: fridges are stocked full of salads,
edamame beans, boxes of fresh sushi and,
of course, Shwraps.
Before embarking on Abokado, Lilley
worked in the corporate brokerage division
of what was Dresdner Kleinwort Benson.
Abokado’s emphasis on healthy eating was
part of a change in lifestyle for Lilley: “I
worked 14-18 hour days in the City,
between eating badly and having no time
to go to the gym I found myself getting a lit-
tle weighty.” This typical predicament has
Mark Lilley, the
founder of Abokado
Picture:
Micha Theiner
/City A.M.
A lack of experience in the food business
helped to cushion the blow when it only
made £100 on its first day: “I didn’t know if
that was good or bad, really. But I did know
that we would never break even.” There are
now six branches of Abokado and it
employs 60 people. The latest branch
recently opened in Euston station.
Shops three, four and five were opened
with the help of two angel investors. Earlier
this year, Abokado’s business plan stepped
up a gear when it received private equity
cover themselves for situations in which pub-
lic customers injure themselves through
using your goods or services, and some com-
panies won’t do business with firms that
aren’t covered. Business motor insurance is
necessary to cover any use of a vehicle by
employee or employer for business purposes.
And if you employ anyone outside your
immediate family, you are required to take
out liability insurance to cover the cost of
anyone you hire getting hurt through work,
whether they trip over cables or become too
stressed; the policy has to cover at least £5m
worth of damages. Additional insurance
might also be mandated depending on your
£0.5m this year. line of work: any company that offers advice,
Lilley’s advice to fellow entrepreneurs is whether it is to individuals or institutions,
to go for it: “The worst that can happen is needs to take out indemnity insurance, which
that you fail, but persistence is key, we covers damages resulting from mistakes in
could have packed up, but we kept going.” your advice. It is required of a wide range of
professions, from hedge fund advisors to
CV | MARK LILLEY architects. But apart from the legal require-
ment, Duncan Philpott of indemnity special-
Age : 37 hard, but I encourage them to ists Prime Profession says: “It makes good
business sense because you’re protecting
Lives : Twickenham, with his wife have a life outside of work too. I your biggest business asset – which is you.”
and three young children. certainly do.”

helped Abokado ride the wave of greater
health consciousness over the last decade.
Setting up any business is hard, but a
takeaway lunch shop is notoriously tough
funding from Kings Park Capital for anoth-
er 20 branches of Abokado across London.
And what about the relationship with
his new backers? “They are fairly hands off.
Drives : Honda 4x4
Book you are reading : “Let My
People Go Surfing, by Yvon
Q.
Places you like to eat: “I think What additional insurance is it
advisable to buy?
Wahaca is fantastic and it’s so
innovative. People are moving

due to paper-thin profit margins. Lilley
started his first branch of Abokado (he now
has six) with £10,000 of his own money: “I
would get the first tube at 4.30am and then
stay in the shop until four or five, before
going home and doing the books.”
They eat in the shops, so they know what
we are doing and are forthcoming about
any good or bad experiences they had.”
This is a pivotal year for Abokado.
Annual turnover is £2.5-£3m across all
branches and net profits are expected to be
Chouinard. It was written by the
founder of clothing company
Patagonia and struck a chord
with me. I like people to work
toward a more tapas style of eat-
ing, and Wahaca has outstanding
freshness.”
www.abokado.com
A.
It is a good idea to have insurance
beyond the legal requirements not
only because it hedges your risks,
but because it also makes other companies
confident that you are a reputable firm with
which to trade. This could include building
and contents insurance as well as computer
insurance, which might need a separate poli-

Is the age of small

cy. It is also wise to take out business inter-
ruption insurance, which will protect your
income and overheads if unexpected catas-
trophe disrupts your ability to trade. With
interruption cover, it is important to be sure

businesses ending?
you are insured for an adequate period –
rebuilding a customer base or setting up
your office after a disaster can take longer
than you think. Credit insurance, meanwhile,
covers the firm’s balance sheet against bank-
rupted debtors, while income protection
insurance ensures that if an employee goes
An era of tight credit could see micro start-ups off work sick you aren’t on the hook for their
long-term salary. Legal insurance can cover
gain in popularity, writes Kathleen Brooks your firm’s non-compliance with the moun-
tain of regulations and legislative require-
ments. And on top of all these policies, there
are numerous others that might make sense

A
GROWING divide is emerging
between the fortunes of the UK’s
large and small businesses. While
UK Plc has seen strong profits and is
sitting on record high cash piles, life has
been harder for small businesses and entre-
sions during the bad times,” says Marshall. depending on how your firm is structured:
Credit is the life-blood for growing firms, “key man” insurance, for example, covers
but there is no sign that banks are loosen- earnings if an employee central to the com-
ing their lending conditions. Data recently pany’s value is lost through unexpected
published also found that lending to small death or incapacity.
businesses by the government’s flagship

preneurs.
According to a survey from the National
Endowment for Science, Technology and
the Arts (Nesta), venture capital has been
Q.
small business loan scheme fell by more Where should I buy all this
than 20 per cent in the six months leading insurance?
up to the general election. And private
equity and angel investors can only go so

hit by a slump in funding, which is threat-
ening the prospects for start-up companies.
This only added to the misery after news
that Aim, the exchange for smaller compa-
nies, saw 15 companies drop out of the
index in June and only one company join.
So what is fuelling the gulf between
small and large firms? Garrath Marshall,
director of entrepreneurial business at
Deloitte, says that larger firms were able to
react quickly to changing conditions dur-
ing the downturn, which has left them
well-placed to benefit during the recovery.
However, small businesses are less adept at
reacting so quickly. “Entrepreneurs can be
closer to their businesses, which actually
makes it harder to make those tough deci-
far in providing support.
So what does this mean for the future of
small businesses? Stephen Alambritis, chief
spokesman for the Federation of Small
Business (FSB), says that this could lead to
an influx of micro-businesses instead of
small firms that have ambitions to grow.
“Combined with the public sector job cuts,
I think we will see more and more people
set up businesses from their homes in the
coming years. They are cheaper to set up,
but it could reduce the number of small
firms aspiring to become big companies.”
But is this bad for the economy? Yes and
no, says David Scott, managing partner at
Vestra Wealth. “For the individuals behind
one-man-band businesses they can be very
Small firms are successful, but it could be detrimental for
finding it harder the overall economy. If small firms find it
togrow into big harder to grow then they won’t provide the
businesses employment they used to.”
If economic conditions continue to
Picture: GETTY erode the viability of growing firms, the
UK’s economy will be the one to suffer.
A.
There are several large firms with
departments that specifically cater to
small businesses, including Aviva and
Lloyds TSB. Information is available from the
Federation of Small Businesses, but the most
common way to find the right insurance is to
use a broker. Brokers work on a commis-
sion based on the cost of the
premium you buy (which
means that, in theory, they
are incentivised to get you an
expensive policy) so make
sure you do your research
beforehand and seek out
a reputable broker.
Juliet Samuel
 Lifestyle DISCOVERING 23
PORTUGAL
| Arts IN MONDAY’S
TRAVEL SECTION

A franchise hunted to extinction

The ugly aliens with
a yen for human
bloodsport are back,
but they haven’t
brought new ideas

Film
PREDATORS
Cert: 15
hhhii
IT’S 23 years since Arnold Schwarzenegger
first did battle with one very ugly extrater-
restial hunter, during which time there’s
been a slew of spin-offs ranging from poor
to dreadful. On paper the latest attempt to
revamp the franchise seems encouraging,
produced as it is by action whiz Robert
Rodriguez, and with Predators battling
men (rather than Aliens) again – and this
time on their own turf.
A motley crew of tough guys (and one
tough girl), headed by Adrian Brody, find
themselves dumped into an unfamiliar jun-
gle which, it soon emerges, is the Predators’
home planet. The stranded team work out
that they’re hunting prey for the creatures,
having been selected to represent the very
best (or worst, depending on how you look
at it) of human ruthlessness and cunning. Robert “R-Patz” Pattinson in his guyliner, Adrian Brody, Alice
A battle of wits emerges as they try to work it’s just tiring to think there’s another two Braga and some big Preview:
out an escape plan while the Predators movies of such slow-burning blood-suck- guns in Predators. SARGENT AND THE SEA
stalk them through the jungle – cue lots of ing dullness to go. Royal Academy
gory action. For the uninitiated, Bella (Kristen
It’s all put together solidly enough but Stewart) is a moody goth teen living in HE’S always had his detractors, but John
there’s nothing new here, and the case for Washington State’s wet and windy Singer Sargent, the American artist who
whether there’s still life in this franchise is nowheresville, who’s in love with moody made his career on this side of the
going to face an up-hill struggle. Brody – goth vampire Edward (R-Patz). She wants to Atlantic in the Victorian era, is a painter
who won his best actor Oscar for Roman be turned into a vampire, but he’s getting who never goes completely out of favour.
Polanski’s Holocaust film The Pianist – is jealous of the time she spends with moody, He’s too much of a crowd favourite with
better as a vigilante tough guy than one muscly and frequently shirtless teen were- his perceptive, tender portraits of glam-
might assume, but the real problem with wolf Jacob (Taylor Lautner). Meanwhile a orous Belle Epoque society, rendered with
Predators is that it’s a bit dull. With the new gang of vamps has been assembled by a painterly touch redolent of Manet, Van
film unable to really deliver the shock villainess Victoria, who wants to kill Bella, Dyke and even Velazquez. Sargent may
value that it obviously intends, it seems all something she’s failed to do in two films have been given to whimsy, and rarely
too clear that this franchise’s power to and, considering how far there is still to go, troubled by any need to answer the big
thrill is mostly gone. no prizes for guessing how successful she artistic questions, but his paintings are Boats II, an 1879 watercolour.
Rhys Griffiths is this time. seldom less than gorgeous to look at.
Eclipse is so slow-moving it’s stagnant. So it should be with the Royal Academy’s of Capri and various Mediterranean ports,
Director David Slade keeps it visually styl- latest exhibition of Sargent’s works, open- as well as a selection of boating water-
THE TWILIGHT SAGA: ECLIPSE ish, with the odd tasty vampire-on-were- ing tomorrow, which focuses on his marine colours painted in Venice later in his career.
Cert: 12a wolf fight scene, but let’s face it, the film’s paintings – a lesser-known part of his oeu- It should offer illumination on the blos-
goal is to tread water for two hours. It’s vre. As a young man in the 1870s Sargent soming of the artist’s career, and act as
hhiii mostly filler, which in Twilight terms spent several summers on the Normandy something of a light-filled counterweight
means a lot of brooding atmosphere and and Brittany coasts, producing seascapes to what is a rather dreary Summer
THE third film in the saga about a teenage melodrama spread over a paper-thin and rustic beach scenes displaying his Exhibition in the RA’s main galleries.
love triangle between a human, a vegetari- screenplay. You’ll find yourself rooting for remarkable talent for capturing light and Timothy Barber
an vampire and a werewolf marks the mid- the baddies, hoping they finish Bella off form. The exhibition features over 70 works Sargent and the Sea opens tomorrow at the
way point in the series. Unless you’re the and put us all out of our misery. drawn from these expeditions and Royal Academy of Arts, and runs until 26
kind of young lady who goes wild for RW Sargent’s other travels to the Italian island September. www.royalacademy.org.uk

ALSO OUT THIS WEEKEND

ENTERTAINMENT

FILM DVD MUSIC GAMES

LEAVING Kristin Scott Thomas gives a typically pow- PERCY JACKSON & THE LIGHTING THIEF Fantasy fun KYLIE Album number 11 from Australia’s most suc- CRACKDOWN 2 (X360) Open world, third-person
erful performance in this French romantic thriller. a little too much in the Harry Potter mould. cessful pop export, titled Aphrodite. shooter sequel set in a city overrun by anarchy.

LONDON RIVER Moving drama set in the aftermath of ASHES TO ASHES SERIES 3 The final outing for one of FEEDER Brit-rock also rans release another album, PRO CYCLING MANAGER SEASON 2010: LE TOUR DE
the 7/7 bombings, with Brenda Blethyn. the most memorable TV detectives, Gene Hunt. Renegades, to put in your CD player player player... FRANCE (PC) Try to win the tour without doping.
WENT THE DAY WELL Rerelease for the classic GENERATION KILL, COMPLETE HBO SERIES Terrific I AM KLOOT Talented, if a bit miserable, Manchester ELEVEN LEGACY COLLECTION (PC) Expansion pack
wartime propaganda movie. series about US soldiers in Iraq. songwriters put out new album Sky at Night. for the fantasy game.
 24 Lifestyle | TV& Games CITYA.M. 9 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm High Street Dreams; BBC
News
8pm EastEnders
8.30pm QI
9pm My Family: New series.
Ben pretends to be disabled.
9.30pm CHOICE The Old Guys
10pm BBC News
10.25pm Regional News
10.35pm Friday Night with
Jonathan Ross
11.35pm The National Lottery
Friday Night Draws
11.45pm FILM Down in the
Valley 2004; Weatherview
1.35am Sign Zone 4.35am-6am
BBC News
6pm Eggheads
6.30pm Antiques Road Trip
7pm Coast: The team explores
Cornwall and the Isles of Scilly.
8pm Hampton Court Palace
Flower Show 2010
9pm Dive
10pm How Not to Live Your
Life
10.30pm Newsnight; Weather
11.05pm Golf: The Scottish
Open
12.05am FILM Confessions of
a Dangerous Mind: Fact-based
comedy drama, starring Sam
Rockwell. 2002.
1.50am FILM The Hitch-Hiker:
Thriller, starring Edmond O’Brien.
1953.
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five:
TV PICK
7pm Emmerdale 7pm Channel 4 News Topical reports.
7.30pm Coronation Street 7.25pm 4thought.tv 7.30pm Zoo Days; Five News
8pm Dickinson’s Real Deal 7.30pm CHOICE The Playboy Update
8.30pm Coronation Street Murderer: New series. 8pm Nature Shock: A spate of
9pm Doc Martin Documentary about murderer deaths among Ugandan hippos;
10pm ITV News at Ten Thanos Papalexis. Five News at 9
10.30pm London News 8pm A Place in the Sun: Home 9pm The Mentalist
10.35pm FILM Smokin’ Aces: or Away 10pm CSI: NY
Premiere. Comedy crime drama, 9pm Big Brother 10.55pm CHOICE Grey’s THE OLD GUYS
starring Jeremy Piven. 2006. 10pm The IT Crowd Anatomy BBC1, 9.30PM
12.35am The Zone; ITV News 10.35pm Big Brother 11.55pm Cops in Crisis New series. Tom and Roy are
Headlines 11.25pm Stand Up for the 12.10am SuperCasino determined to win a pub quiz. Comedy,
2.35am FILM All That Heaven Week 4.05am Motorsport Mundial starring Roger Lloyd Pack, Clive Swift,
Allows: Romantic drama, starring 12.15am Music on 4 4.30am House Doctor 4.55am Jane Asher and Cherie Lunghi.
Jane Wyman. 1955. 3.55am 1.15am Big Brother: Live 3.35am Rough Guide to Islands 5.10am The
Touching Evil 4.50am-5.30am ITV This Week’s 4Music Top 20 New Tomorrow 5.35am-6am
Nightscreen 5.25am-6.10am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 2am So You Think You Can 12.25am-6am Big Brother: DISCOVERY HOME &
SATELLITE & CABLE

5.30pm Live Twenty20 Cup
Cricket 9pm Premier League
World 9.30pm Football’s
Greatest 10pm World Cup
Report 10.30pm World Sport
11pm Twenty20 Cup Cricket
1am Super League 2.30am
Friday Fight Night 4.30am-
6am Super League
SKY SPORTS 2
7pm World Sport 7.30pm Live
Super League 10pm Live
Friday Fight Night 12am NFL:
Total Access 1am Tight Lines
2am Ocean Ride 2.30am World
Sport 3am Twenty20 Cricket
5am-6am NFL: Total Access
SKY SPORTS 3
7pm Tight Lines 8pm Live US
Women’s Open Golf 12am Live
PGA Tour Golf 2am European
Tour Golf 3.30am Golfing World
4.30am FIFA Futbol Mundial
5am World Sport 5.30am-
6am Football’s Greatest
7pm Eurosport Flash 7.05pm
Soccer City Live 7.40pm
Eurosport Flash 7.45pm World
Superbikes 9.30pm Cycling:
Tour de France 10.30pm
Soccer City 11pm Cycling: Tour
de France 12am Planet
Armstrong 12.05am-12.35am
Soccer City
ESPN
7pm ICC Cricket World
7.30pm Australian Rules
Football 10pm The Ultimate
Fighter 11pm MMA Live
11.45pm UFC All Access
12.15am Talk of the Terrace
12.30am Press Pass 2010
1.30am ICC Cricket World
2am The Ultimate Fighter 3am-
5am Live Friday Night Fights
LIVING
7pm Four Weddings 8pm
Passport Patrol 9pm Criminal
Minds 10pm CSI: Miami 11pm
Criminal Minds 12am CSI: CSI
Dance 3am The Fresh Prince of
Bel-Air 3.50am Maury
4.40am Nothing to Declare
5.30am-6am Home Shopping
BBC THREE
7pm Top Gear 8pm T: Editors
and La Roux 9pm T: Florence
and the Machine and Faithless
10pm EastEnders 10.30pm T:
Muse and Calvin Harris 12am
Family Guy 12.45am Lee
Nelson’s Well Good Show
1.15am Mongrels 1.45am
Special 1 TV 1.50am World
Cup’s Most Shocking Moments
3.50am Lee Nelson’s Well Good
Show 4.20am Mongrels
4.50am-5.20am The Real
Hustle on Holiday
E4
7pm Hollyoaks 7.30pm Friends
9pm Supernanny 10pm
Supersize vs Superskinny
11.05pm Rude Tube 11.20pm
Big Brother’s Big Mouth
Live
HEALTH
HISTORY 7pm Babes in the Wood 8pm
7pm How the Earth Was Made Jon and Kate Plus 8 9pm 17
Kids and Counting 10pm Last
8pm Decoding the Past 9pm
Mountbatten: Death of a Royal Chance Surgery 11pm Mystery THE PLAYBOY MURDERER
10pm The Cosmos: A Diagnosis 12am 17 Kids and CHANNEL4, 7.30PM
Counting 1am Last Chance
Beginner’s Guide 11pm Documentary about Thanos Papalexis,
Goering: A Career 12am Surgery 2am Mystery who went from hosting parties for Bill
Decoding the Past 1am How Diagnosis 3am Jon and Kate Clinton to murdering a man because he
the Earth Was Made 2am Plus 8 4am Baby Tales 5am- stood in the way of a deal.
Egypt 3am Pawn Stars 4am- 6am Mum + One
5am Decoding the Past
SKY1
DISCOVERY 7pm The Simpsons
8pm How Do They Do It? 8pm Missing Children: Lorraine
8.30pm How It’s Made 9pm Kelly Investigates. The case of
The Cumbrian Murders 10pm 15-year-old Vicky Hamilton.
How the Universe Works 11pm 9pm Bones. A competitive
Battlefield Mysteries 12am gamer is murdered. 11pm Lie to
Deadliest Catch 1am Bear Me 12am Oops TV 1am Road
Grylls 2am Chris Barrie’s Wars 1.50am Justin Lee Collins: GREY’S ANATOMY
Massive Machines 3am World West End Star 2.40am Road FIVE, 10.55PM
War Two in HD Colour 3.50am Wars 3.30am Shear Genius Addison returns to the hospital to
Raging Planet 4.40am Days 4.20am Tim Gunn’s Guide to perform an unusual operation, and Alex
That Shook the World 5.30am- Style 5.10am-6am Are You is forced to face his responsibilities when
6am How Does That Work? Smarter Than a 10 Year Old? Rebecca announces she is pregnant.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
15 10 3 35 20 29 17 
4 19 15
16 16 
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 24 11
20 29
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 11 14
  
above or to the left of it. 12 41 13
You can only use the digits 1-9 12 21  
  and you must not use the
34
24 30   
same digit twice in a block. 26
     The same digit may occur 26 8  
18
   more than once in a row or
column, but it must be in a
23
7
20
22 9

10 8
    separate block.
13 11 
45

16 21 9

   ACROSS Down
1 Children’s outdoor 1 Garment hanging
  
WORDWHEEL toy (6) from the waist (5)
6 Herbivorous lizard of 2 Ms Stone, aka Catherine
     U A tropical America (6) Tramell in the Basic
Using only the letters in the Wordwheel, you have 7 Relatives by Instinct films (6)
  ten minutes to find as many words as possible,
D T marriage (2-4) 3 Specific feeling
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A 8 Hold and move
repeatedly (6)
of desire (4)
4 Fine particles
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S T 10 Forbidden (5) of wood (7)
5 Desert animal (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E R
13 Take off clothes (7)
16 Captivate (5) 9 Actor, ___ Baldwin,
former husband of
QUICK CROSSWORD 3 6 9 8 9 4 8 6
18 Unwell (6)
Kim Basinger (4)
1 5 2 3 6 1 5 2 SUDOKU         
20 Public speaker (6)
11 Mass of precious
% / $ 1 & + 6 6
2 9 9 1 4 2         
21 Alloy of copper metal (7)
5 1 $ / : $ < 6
4 8 9 7 8 3 1 and tin (6)
$ 7 7 ( 6 7 2 5
8 4 5 7 6 9 3
         12 Chief Norse god (4)
1 , 2 6 0 2 6 , 6
         22 Arm covering (6)
' , & ( < 1 $ 8 6 3 1 4 5 9 7 2 14 Barbaric, violent (6)
        
<
$
6 7 $ 5
+
7 (
$ '
'
2 5
1
(
9
6
8 6 5 2 3
1 7 9
7
5 9 4
WORDWHEEL         
15 Young sheep (5)
( 4 8 , 1 2 ; = &          17 Large group or
$ & ' , 9 ( 5 7 1 2 3 7 7 1 The nine-letter word crowd (5)
2 9 7 8 8 1 6 2         
$ % 2 $ 5 ' 1 $
7 8 5
was MATERNITY          19 Departs (4)
$ / 6 ( 1 6 2 5 1 8 2 3 9
 26 Lifestyle | Fashion CITYA.M. 9 JULY 2010

le in your
izzswimwear
3

S The season’s cozzies

flatter curves, says
very cool, perfect for posing in Ibiza at
daytime parties, but not very good for get-
ting a sensible tan line. And you need to
be lean.”
1
2
But on the whole, it’s a good summer
Zoe Strimpel for the flabbier-stomached lady – as Nash
King says: “One-pieces haven’t been in for
ages. Now you can go crazy with them:

I
T was reported last week that women
spend more on their swimwear than
they do on their holidays. This either
means that their holidays are very
cheap or that their swimsuits are amaz-
ingly expensive, but the upshot is that
swimwear is in the fashion spotlight and
it just won’t do to, err, skimp.
Yet it’s not easy choosing swimwear –
women’s bodies are a constant challenge
when it comes to looking good in lycra.
And this summer there are so many
trends about, it can all be rather confus-
ing. The main looks are cut-out costumes
and 1950s-style big pants – oh, and every-
thing in between.
But what can real women wear? Tara
Nash King, founder of fashion brokerage
Chic and Seek (chicandseek.com), says:
“For the more curvy woman, I am a mas-
sive fan of the 1950s big pants look. They
are super flattering for holding the stom-
ach in. As for the cutout costume look, it’s
animal prints, sequinny detail and other
exotic patterns are popular.”
NEED TO KNOW: BEACHWEAR
l If you’re lean, you’ll look great in an
extreme cut-out costume. Just be sure to
have a decent base tan, and to lather up
well with cream to avoid odd tan lines.
l If you’re curvy but slim, go for a ban-
deau-style top and a string-tie bikini bot-
tom.
l If you’re curvy: go for the 1950s style
big pants bikini. 6
l Cover-ups are all the rage: go for a tye-
die kaftan or a playsuit.
l Fashionistas accessorise their
swimwear, so get jewelled up for a glam
5
Ibiza look.
l Great websites for swimwear are
Clickini (www.clickini.com), and Lie Low
(www.lielow.co.uk); a good high street 4
shop is Oasis, as it lets you mix and
match tops and bottoms.

9
7
8

1 Solid cut-out swimsuit, Calvin Klein, £79, www.calvinklein.com 2 Phuket cut-out swimsuit, Melissa Odabash, £275, www.neta-
porter.com 3 Beige and black swimsuit, Pistol Panties, £180, www.apartment-c.com 4 Angola knit strapless tankini, Missoni, £424,
www.netaporter.com 5 Halterneck swimsuit, Shan, £229, www.harrods.com 6 Orange bikini, Lacoste, £70, www.lacoste.com
7 Underwired bikini with medium waist, Jill Sander, £220.45, www.clickini.com 8 Polka dot bikini top and shorts, Toast, top £32,
shorts £30, www.toast.co.uk 9 Star one-piece, Tomas Maier, £287, www.clickini.com

TREND WATCH: UNDERWEAR AS OUTWEAR

ZOE STRIMPEL

Hooray: a bra with straps you actually want to flaunt

U
NLESS you happen to have the fig-
ure of Kate Moss, going bra-free – or
even strapless – is not usually an
option. Fuller-chested women need
proper bras, straps ‘n’ all. Problem is,when
it comes strappy top season, it’s hard to
get dressed without showing your bra
straps – and that look is dubious at best.
Until now, I’ve merely accepted that
summer equals unseemly strappage. But
along came Brazelle, an ingenious yet
simple idea that has changed the way I
regard my underwear.
Brazelle is essentially a company that
makes bra straps. But instead of being
nasty synthetic ones that gleam hideous-
ly, they’re made of silk and satin,
embellished with gemstones and in
gorgeous colours. Mine is pale
turquoise and sports green gems. It’s
a showstopper.
You hook them up to one of vari-
ous points on a bra – the company sup-
plies very firm, reducing cups – and sud-
denly you have a stunning halterneck that
looks like a brilliant bikini. Unlike most
lingerie, sexiness does not come at the
expense of practicality: the support is fan-
tastic.
You can play around with them too.
One day it’s a halterneck; the next, why
not loop the strap from the centre and
outwards around the neck? You can also
use it as a belt or a hair ribbon. Now that is
what I call added value.
Satin lycra straps cost £34.99 and come
in lots of luscious colours: I recommend
buying a few, good for all seasons and
looks. Or ramp it up to full-blown glam,
with the Murano collection, which fea-
tures clusters of Murano glass plated with
18k gold – these straps cost £387 but are
exquisite. After all, if you’ve got it: flaunt
it. www.brazelle.com
 Punter
FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT SUNDAY’S
WORLD CUP FINAL
Spain can hold their
nerve to lift the title
HOLLAND
SPAIN
SUNDAY - 7.30PM BBC 1 AND ITV 1
MOST football purists would have been
purring at the start of the tournament if
I’d said it was going to be a Netherlands v
Spain final in Johannesburg on Sunday
11th July. However, the Dutch have taken a
far more pragmatic approach to this year’s
competition, while Spain have only made
it to the final thanks to three 1-0 victories
in the knockout stages.
Remarkably, neither of these countries
have ever won a World Cup and for Spain
this is their first ever appearance in a
final. Similarly strange is that these two
great footballing nations have never met
at a World Cup or European
Championship, so this is truly history in
the making. There is nothing to split
them in terms of previous meetings with
both teams winning four of nine contests,
the last being a 1-0 friendly win for
Holland in 2002.
No team has ever won the World Cup
having lost their opening game, but Spain
are just one game away from rubbishing
that stat. They have yet to hit full stride,
but are packed full of quality and their
performance against Germany in the sec-
ond half on Wednesday night underlined
their position as the best side in the com-
petition. The way they pass and move is a
joy to watch and with Xavi and Andrés
Iniesta pulling the strings in the middle
and David Villa providing the killer finish
they have the potency to unlock the stingi-
est of defences.
There is no doubt that Spain are a won-
derful side going forward, but it’s been
their work ethic and defensive organisa-
tion that have particularly impressed me
in the past few games. Look back at the
Portugal and Germany games and it’s a
real struggle to even remember a chance
for either of their opponents. Barcelona
form the backbone of the team and Carles
Puyol and Gerard Piqué have been
immense throughout, conceding just two
goals in their six games.
Holland haven’t won as many fans as
they normally do at these tournaments as,
to be honest, they play more like a tradi-
tional German side than the typical Dutch
‘Total Football’ one we’ve come to know
and love. That said, they have been clini-
cal, winning all six games so far, and their
performances against Brazil and Uruguay
showed just how much confidence is run-
ning through the side.
Wesley Sneijder has had an unbeliev-
able season with Inter Milan and he has
been the Oranje’s star player by a mile.
Arjen Robben, who came into the tourna-
ment with injury troubles, has also
stepped up to the mark in the past two
games and with Robin van Persie on the
scene as well this is a side full of goalscor-
ing potential.
The hope is that both of these teams
27
Picture: ACTION IMAGES
peak at exactly the right time to make it a
final to remember, but I can’t see either
side losing their discipline and just one
defensive mistake could prove incredibly
costly. Holland have scored two or more
goals in five of their six games, but cru-
cially they have conceded in all of their
last four and they won’t want to take on
Spain in a passing game.
I have no doubt that the Dutch are
going to prove a stern test for the Spanish,
but their display against Germany showed
me that they are ready to notch another
major trophy and I’ll be backing them to
win in 90 minutes at 11/10 with William
Hill. The opening period could be quite
cagey, as it has been in all of Spain’s last
three games, so I’d also be tempted to back
the draw HT / Spain FT market at 4/1 with
Paddy Power.
It’s hardly ‘boring, boring Spain’ syn-
drome, but the 1-0 victory has become
something of a pattern and with their
2008 European Cup final win against
Germany also coming by that scoreline,
I’ll have a go at that at around the 11/2
mark with Starsportsbet.co.uk. There have
been two or fewer goals in four of the last
World Cup finals and in five of Spain’s six
games here, so spread bettors should sell
goals at 2.1 with Sporting Index.
POINTERS...
Spain to win in 90 minutes at 11/10 with William Hill
Draw HT / Spain FT at 4/1 with Paddy Power
Spain to win 1-0 at 11/2 on Starsportsbet.co.uk
Sell total match goals at 2.1 with Sporting Index
 28 Punter CITYA.M. 9 JULY 2010

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS WEEKEND’S RACING ACTION

Flying filly Fleeting Spirit to take

July Cup for second year running
T
HERE is an international flavour to at Royal Ascot, but he’s been on the go
today’s July Cup at Newmarket with since August and has only registered con-
speedsters from Australia, the US, secutive wins once in his 13-race career.
France and Ireland taking on the Golden Jubilee winners also have a poor
home contingent. However, I think the record in this race and I’d be willing to lay
prize will stay in Newmarket and Jeremy him on Betdaq at 6/4 or shorter.
Noseda’s FLEETING SPIRIT can become Of the others, Equiano and Nicconi look
the first horse since Right Boy in 1959 to doubtful stayers, Kingsgate Native is
win the race back-to-back. inconsistent, Marchand D’or ran a shocker
This is one gutsy filly who has run con- last time and US-based Kinsale King has
sistently well at the highest level for the had a long, hard season. There have been
past three seasons. I was deeply impressed five winning three-year-olds in the past 13
by the way she put this race to bed 12 years and the classic generation are repre-
months ago, despite hanging badly in the sented by Society Rock and SHOWCASING
closing stages. She holds her form very (e/w) this time. The former ran a stormer
well and her reappearance fourth in the to finish second in the Golden Jubilee, but
Golden Jubilee was excellent, as she was it may just be that he is better suited to
drawn on the wrong side of the track. Ascot. John Gosden’s Showcasing is a high-
That run will have put her spot on for ly promising sprinter, but was immensely
this and with Frankie Dettori in the sad- disappointing in the same race. However,
dle, I think she will win. I’m always willing to forgive a horse a bad
Starspangledbanner is a worthy favourite run at the Berkshire track and with first
following his power-packed performance time blinkers he looks overpriced at 20/1

I GET
THREE £10
BETS FREE.
with William Hill.
Andrew Balding has already been in
Newmarket’s winner’s enclosure this
week and I expect him to be there again
after today’s opener (1.30pm). He won this
race last year and has a great chance of
taking it again with HIGHLAND KNIGHT,
who won his maiden impressively at
EXCLUSIVE TO NEW TELEPHONE/ONLINE CUSTOMERS* Lingfield last time. The fillies’ maiden at
3.45pm can go to Godolphin with their
Simply stake £10 today and we will give you highly regarded RAGSAH. She was backed
3x£10 Free Bets. Quote WORLD30 as if defeat was out of the question on
debut here last month, but will have
learnt a lot from finishing second to Sweet
Cecily.
The 32Red Trophy (2.35pm), known as
WORLD CUP FINAL the Bunbury Cup to you and I, looks as dif-
ficult as ever and Jeremy Noseda runs
Sunday 7.30pm Live on BBC TV.
Captain Brilliance, who was narrowly
6/5 Spain 11/5 Draw Holland 13/5 denied by top weight Plum Pudding last
year. PALACE MOON tops the ratings this
All football prices quoted are phone/net, different odds may apply in retail. Extra time does not count. time and on his third to Laddies Poker
Two in the Wokingham, he must have a
GET THE BEST PRICE ANYWHERE!
massive chance. Kieren Fallon is in the sad-
dle and his draw in stall five looks good.
Kelly Harrison (left) ily impressive at this track the time before.
and Kirsty Milczarek However, Michael Bell’s Wigmore Hall ran
are riding in this really well at the Royal meeting as well
evening’s Breast and he seems to come into his own in
Cancer Care Pink Mile these big-field races. He has to carry just
Picture: 8st 5lbs and with Martin Lane taking off
ACTION IMAGES another valuable 3lbs, he looks a cracking
each-way bet at 6/1.
Finally, Racing for Change and Chester
Racecourse have combined for tonight’s
Breast Cancer Care Pink Mile (6.10pm). It’s
the world’s first ever pink horserace with
female horses and jockeys, all of whom
will be wearing specially designed pink
silks. The race is free-to-air on Racing UK
and the channel is also donating £5 of
every subscription made today to the char-
ity. Finding the winner doesn’t look easy,
but I’ll be having a small each-way bet on
MANY WELCOMES who has won over
course and distance.
POINTERS...
HIGHLAND KNIGHT 1.30pm Newmarket (today)

6/5 SPAIN
Tomorrow’s highlight is the John PALACE MOON e/w 2.35pm Newmarket (today)
Smith’s Cup at York (3.05pm) and I’ve nar- FLEETING SPIRIT 3.10pm Newmarket (today)
rowed the field down to two: Imposing SHOWCASING e/w 3.10pm Newmarket (today)
and WIGMORE HALL. Ryan Moore RAGSAH 3.45pm Newmarket (today)
arguably gave the former too much to do MANY WELCOMES e/w 6.10pm Chester (today)
at Royal Ascot last time, but he was might- WIGMORE HALL e/w 3.05pm York (tomorrow)
TO WIN IN 90 MINS

INSIDER
the

oddschecker.com
All the latest odds and £100s of bookie freebets

I
haven’t had too many two-year-
old bets so far this season but
I’ll be changing that tomorrow
with a hefty wager on MAJOR
CONQUEST (8%) in the nursery at
Ascot (2.20pm). John Hills’ runners
0800 44 40 40 williamhill.com often improve and this son of
Librettist has been going the right
way. The form in the book is very
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strong with his fourth to Crown
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Prosecutor looking very hot. He has
now got his head in front and I
think an official rating of 79 is very
helpful. He might be one to back
until he gets beaten, which will
hopefully not be tomorrow!
THRUST CONTROL (2% e/w)
might be running out of the weights
in tomorrow’s Scoop6 Handicap at
Ascot (1.45pm) but I think Cathy
Gannon should be able to steer this
son of Fath into the winner’s enclo-
sure.
At York tomorrow 22 go to post
for the John Smith’s Cup. Based on
his last run at the track I’m going to
take on Forte Dei Marmi and have a
few shillings on a rank outsider. Mark
Johnson is in cracking form right
now, his TARTAN GUNNA (2% e/w)
is possibly more exposed than some
of the competition but he should be
there or thereabouts and merits con-
sideration. Tonight, TAGSEED (3%)
should be able to clinch his four-
timer in the 7.35pm at Chepstow.
 Sport
Steely Bell chimes again as
England cruise to easy win
▲
CRICKET
BY JON COUCH
IAN BELL marked his return to the
one-day side with a match-winning
knock as England cruised to a six-
wicket victory over Bangladesh in the
first of their three-match series.
The Warwickshire batsman, mak-
ing his first ODI appearance since
November 2008, followed up his 158
for the Lions against India A on
Tuesday with a splendid 84 not out as
England cruised to their victory tar-
get of 251 with 29 balls to spare.
It signalled yet another impressive
Injury has robbed us of a legend in
Harry Ellis, says a saddened Johnson
▲
RUGBY UNION
BY JON COUCH
MARTIN JOHNSON believes England
have lost a future legend in Harry
Ellis, who was forced to retire yester-
day at the age of 28 with knee prob-
lems.
The Leicester and England scrum-
half underwent reconstruction sur-
gery on his left knee in 2007, then
saw his brief comeback thwarted
with a similar injury last season,
eventually prompting him to hang up
his boots.
England team boss Johnson was a
former team-mate of Ellis for the
Tigers and the national side and says
comeback for the 28-year-old, who
has now worked his way back into
the Test and one-day fold with gritty
displays.
Captain Andrew Strauss, who has
also had his suitability questioned for
50-over cricket in the past, added a
quickfire 50 from 37 balls.
But for Bangladesh, it capped a
rather forgetful day as wicketkeeper
Mushfiqur Rahim and batsman
Raqibul Hasan suffered injuries
which could rule them out for the
remainder of the series.
Rahim was taken to hospital after
being struck in the eye by a turning
the game has been robbed of a poten-
tial star.
“Harry has been an excellent player
who always gave everything for
Leicester Tigers and England,” he
said.
“From the first time he was
involved it was obvious to
everyone in the Tigers squad
that he was a special talent
and that he’d make a big
impact. I’m sure that if he’d been
fit Harry would have continued
to make a huge contribution to
his club and country for many
years to come. On behalf of the
England squad I’d like to wish
Harry all the best for the future.”
WILL VILLA BECOME A
WORLD CUP MATCH-WINNER?
TREVOR STEVEN LOOKS AT THE KEY
BATTLES IN SUNDAY’S FINAL: P31
delivery from Faisal Hossain, while
Raqibul was struck on the foot by a
James Anderson yorker before going
onto top-score with 76.
His knock helped Bangladesh to
250-9, although at 222-4, the Tigers
might have expected to set their
hosts a bigger target.
As it was, Anderson took 3-74,
while Stuart Broad, just 24 hours
after the death of his stepmother,
and Tim Bresnan, claimed two wick-
ets apiece.
England never looked in danger as
they chased down the target. Strauss
and Craig Kieswetter (32) piled on an
Ellis, who won 27 caps for
England and one for the British
Lions in 2009, consulted highly-
respected orthopaedic surgeon
Andy Williams before mak-
ing his decision.
“All last season I was
taking a hell of a lot of
painkillers and I was
constantly having blood
and fluid drained from
my knee,” he said.
“I have had so many opera-
tions on my knee I knew it was
time to retire. I was gutted and
really upset when I found out
and it took a while to get used
to.”
Match-winner Bell
was playing his
first one-day
international since
November 2008.
Picture: ACTION
IMAGES
opening stand of 75 off 66 balls, leav-
ing Bell and Paul Collingwood to take
charge after their work was done.
Collingwood added 33 before top-
edging a sweep off Shakib Al Hasan
before Eoin Morgan took England
beyond 200 with a lofted drive for six
and then a trademark reverse-sweep
for four in his enterprising 23.
But supported to the end by
Michael Yardy (10no), Bell deservedly
took the plaudits, smashing six fours
in a measured 101-ball knock to hand
England a 1-0 series lead going into
the second one-dayer at Bristol on
Saturday.
SPORT | IN BRIEF
Cavendish claims 11th stage win
CYCLING: Mark Cavendish recovered
from his recent setbacks to claim his 11th
Tour de France stage victory after a
sprint finish in Montargis.
The Manxman crashed out of the first
stage and finished a disappointing 12th
in Wednesday’s fourth stage, but showed
his class to hold off German Gerald Ciolek
and Team Sky’s Edvald Boasson Hagen.
“It is an incredible feeling. All thatFORMULA ONE: Sir Frank Williams
emotion and pressure that has built up all
year has finally come to an end,” the
HTC-Columbia rider said.
Swiss Fabian Cancellara retains the
yellow jersey, while Brit Geraint Thomas cipal, while Parr, who has been acting
stays second and keeps the young riders’ chairman since March, will take over the
white jersey.
Slow start for Mickelson
GOLF: Phil Mickelson suffered a disap-
pointing opening round 71 at the
Barclays Scottish Open as he attempts to Time is evolving. There are a few more
overhaul Tiger Woods as world No1.
29
Results
CRICKET
1ST ODI
England v Bangladesh
TRENT BRIDGE: England beat Bangladesh by six wickets
BANGLADESH
T Iqbal lbw Broad........................................................................................28
I Kayes c Morgan b Anderson................................................................14
J Siddique lbw Yardy..................................................................................51
R Hasan run out ............................................................................................76
S Al Hasan c Anderson b Broad............................................................20
M Rahim c Wright b Bresnan ................................................................22
M Mahmudullah lbw Anderson................................................................4
F Hossain not out............................................................................................8
M Mortaza c Bell b Anderson ..................................................................5
A Razzak b Bresnan ......................................................................................3
B1 lb7 w11........................................................................................................19
Total (9 wkts., 50 overs) ......................................................................250
Fall: 40, 70, 136, 186, 222, 234, 236, 243, 250.
Bowling: Anderson 10-0-74-3, Bresnan 10-0-40-2, Broad 10-1-
43-2, Tredwell 3-0-18-0, Wright 3-0-20-0, Collingwood 9-1-32-0,
Yardy 5-0-15-1.
ENGLAND
A Strauss run out ........................................................................................50
C Kieswetter c Hossain b Al Hasan......................................................32
I Bell not out..................................................................................................84
P Collingwood c Siddique b Al Hasan ................................................33
E Morgan c Islam b Razzak ....................................................................23
M Yardy not out ............................................................................................10
B5 lb4 w10 ......................................................................................................19
Total (4 wkts., 45.1 overs) ....................................................................251
Fall: 75, 93, 173, 213.
Bowling: Mortaza 6-0-30-0, Islam 5-0-46-0, Razzak 10-0-64-1,
Al Hasan 10-0-35-2, Mahmudullah 8-0-41-0, Hossain 6.1-0-26-0.
Umpires: A Rauf & N Llong.
LV COUNTY CH’SHIP - DIVISION ONE (Headingley
Carnegie); Yorkshire 425 (G L Brophy 103, A Lyth 84, A
McGrath 57, N M Carter 4-87) and 200-4 (J A Rudolph 80,
J M Bairstow 64no) v Warwickshire 253 (I J Westwood 66,
A U Rashid 4-71, S A Patterson 4-57) and 371 (R Clarke
127no, A U Rashid 5-137). Yorkshire (23pts) beat
Warwickshire (4pts) by 6 wickets.
DIVISION TWO (Arundel); Gloucestershire 307 (C G Taylor
89, Kadeer Ali 58) v Sussex 314-6 (88.0 overs), V Banerjee
4-84)..
FRIENDS PROVIDENT T20 - SOUTH DIVISION (Brit
Insurance Oval); Surrey 120-8 v Middlesex 121-3 (N J
Dexter 62no). Middlesex (2pts) beat Surrey by 7 wickets.
CYCLING
TOUR DE FRANCE (Epernay - Montargis, 187.5km)—SStage
5: 1 Mark Cavendish (Gbr) Team HTC - Columbia 4hrs
30mins 50secs, 2 Gerald Ciolek (Ger) Team Milram at same
time, 3 Edvald Boasson Hagen (Nor) Sky Professional
Cycling Team at same time, 4 Jose Joaquin Rojas Gil (Spa)
Caisse d’Epargne at same time, 5 Thor Hushovd (Nor)
Cervelo Test T eam at same time, 6 Sebastien Turgot (Fra)
Bbox Bouygues Telecom at same time. General classifica-
tion: 1 Fabian Cancellara (Swi) Team Saxo Bank 22hrs
59mins 45secs, 2 Geraint Thomas (Gbr) Sky Professional
Cycling Team at 0.23, 3 Cadel Evans (Aus) BMC Racing Team
at 0.39, 4 Ryder Hesjedal (Can) Garmin - Transitions at 0.46,
5 Sylvain Chavanel (Fra) Quick Step at 1.01, 6 Andy Schleck
(Lux) Team Saxo Bank at 1.09.
TODAY’S DIARY
CRICKET
Friends Provident T20 - North Division: Northamptonshire v
Warwickshire (Northampton), Worcestershire v Durham
(New Road), Lancashire v Yorkshire (Old Trafford). South
Division: Somerset v Hampshire (Taunton), Glamorgan v
Surrey (The SWALEC Stadium), Kent v Essex (Brit
Insurance Oval).
CYCLING
Tour de France - Stage 6 ( Montargis-Gueugnon; 227.5 km).
RUGBY LEAGUE
engage Super League (8pm):: Harlequins RL v Bradford, Hull
K R v Leeds, St Helens v Catalans Dragons, Wigan v Salford.
SPORTS EDITOR JON COUCH
email sport@cityam.com
Mickelson needs to finish first or sec-
ond at Loch Lomond to leapfrog Woods
ahead of next week’s Open, but struggled
with a level-par round.
Ulsterman Darren Clarke leads on six-
under-par, ahead of England’s Graeme
Storm, Italy’s Edoardo Molinari and
Ireland’s Damien McGrane.
Sir Frank steps down
handed over his role as team chairman to
Adam Parr yesterday – but insisted he is
not ready to retire.
The 67-year-old remains as team prin-
day-to-day running of the team with the
experienced Patrick Head moving over to
the technical side.
Williams, however, reiterated: “This is
not notice of my impending retirement.
years in me yet.”
 30 Sport CITYA.M. 9 JULY 2010

MCLAREN: IS IT TRUE BROMANCE?

It’s all smiles between Lewis Hamilton HAMILTON’S RECORD | BUTTON’S RECORD |
and Jenson Button now, but will things BRITISH GP BRITISH GP

boil over at Sunday’s British Grand Prix? YEAR POSITION YEAR POSITION
2000 – 5th (Williams)
2007 – 3rd (McLaren)
2008 – 1st (McLaren) 2001 – 15th (Benetton)
2002 – 12th (Renault)
FORMULA 1 British pair Lewis
Hamilton and
2009 – 16th (McLaren)
2003 – 8th (BAR)
2010 Jenson Button race
in front of their
2004 – 4th (BAR)
BY JON COUCH 2005 – 5th (BAR)
home fans at
IT’S been played down as friendly Silverstone on
2006 – Ret (Honda)
rivalry thus far, but if it comes down Sunday as one and 2007 – 10th (Honda)
to a sprint finish to take the che- two in the drivers’ 2008 – Ret (Honda)
quered flag in the British Grand Prix standings. 2009 – 6th (Brawn)
on Sunday, rest assured they’ll be no
pleasantries in the McLaren cockpits Picture: GETTY
of Lewis Hamilton and Jenson Button.
One-two in the drivers’ champi-
onship, all eyes are on the British pair
to fight it out for their third victories
of the season in front of their home
fans at Silverstone.
Nine races into the season, it’s still
all love and happiness in the Woking-
based garage as Hamilton and Button
go about their business of establish-
ing McLaren a lead in the construc-
tors’ championship.
But as the season enters its second
half and the title race hots up, it has
been suggested that cracks are begin-
ning to appear beneath the surface as
the world champions of the last two
years desperately try to reclaim their
crown.
Another former British world Hamilton leads Button by just six podium here, and I’m going to SILVERSTONE
champion, Damon Hill, believes the points at the top of the drivers’ cham- change that this year.”
relationship may “boil over” for the pionship with two wins apiece. But Hamilton, on the other hand, won Laps: 52 Length: 5.891 km
season run-in, starting Sunday, while with the new points system, which here two years ago and is desperate to Race Distance: 306.747 km
Red Bull’s Mark Webber believes a rift gives 25 for a win, and the likes of experience that feeling again. Lap Record: 1:18.739 - M Schumacher (2004)
is “inevitable” given what is at stake. Webber, his team-mate Sebastian “The feeling of winning your home
Vettel and Ferrari’s Fernando Alonso grand prix is unique and very special Club
BRITISH GP | HOME WINNERS all in close attendance, every win is – it’s almost as good as winning the Luffield
vital. world championship.” Vale Abbey
5 – Jim Clark (1962, 1963, 1964, 1965, Button is yet to claim a podium fin- Woodcote
1967) ish in 10 years racing at Silverstone, F1 2010 | SEASON SO FAR
4 – Nigel Mansell (1986, 1987, 1991, but insists the pressure of racing in
front of a home crowd doesn’t faze RACE HAMILTON BUTTON Farm Curve Wellington
1992) straight
him. “I don’t feel under pressure Bahrain 3rd 7th
2 – Stirling Moss (1955, 1957) going into my home race – I feel very
Jackie Stewart (1969, 1971) Australia 6th 1st Start
relaxed, and Lewis is the same,” he The Loop Village
David Coulthard (1999, 2000) said. Malaysia 6th 8th Brooklands
“It’ll be a lovely atmosphere. We’ve China 2nd 1st Stowe
1 – Lewis Hamilton (2008) Aintree
both been here and had a rubbish Spain 14th 5th
Damon Hill (1996) result, yet you still get the support.
John Watson (1981) Monaco 5th DNF Hanger
For us it’s a case of going there and straight
James Hunt (1977) looking forward to it, more than feel- Turkey 1st 2nd
Peter Collins (1958) ing under pressure. Winning at Canada 1st 2nd Chapel
Tony Brooks (1957) home, you celebrate with your home Europe 2nd 3rd Becketts Maggots Copse
crowd. I‘ve never even been on the

Spurs net £20m sponsor Tottenham ready to mount a

in league and cup split deal
FOOTBALL Mansion.com whose four-year deal
league title challenge – Bale
▲

BY JON COUCH ended this summer. Holsten (twice),

Hewlett Packard and Thomson FOOTBALL more players I don’t think this year.”
▲

TOTTENHAM last night announced
an innovative sponsorship proposal
which will see them wear different
branded shirts for league and cup
matches.
The move came after software
infrastructure firm Autonomy
announced a £20m deal over two
years to become title sponsors for
Premier League games only.
Now, Spurs are looking to agree a
deal with a separate company to spon-
sor shirts worn in the FA Cup, League
Cup and European competitions.
A FTSE 100-listed company,
Autonomy is the UK’s largest pure
software company, and becomes only
the fifth brand to appear on the
famous lillywhite shirt, replacing
Holidays are the others.
“We are delighted to have
Autonomy as our new global partner,”
said Spurs chairman Daniel Levy.
Levy is thought to be the brainchild
behind the dual-sponsorship idea and
the club are now in discussions with
several brands to sponsor their cup
shirts. The deal could land the north
London club an additional £20m
depending on their number of
appearances – boosted by the fact
they have qualified for the
Champions League this year.
Harry Redknapp’s Spurs will wear
their new Autonomy-branded shirts
for the first time on their tour of the
USA when they play San Jose
Earthquakes on 17 July.
BY FRANK DALLERES
TOTTENHAM flyer Gareth Bale
believes Spurs are ready to take
another step up and mount a chal-
lenge for the Premier League title
next season.
Harry Redknapp ended years of
frustration in May when he led the
White Hart Lane outfit to fourth
place and a first ever shot at the
Champions League.
And Wales star Bale (right) is con-
vinced they can raise the bar by chal-
lenging Chelsea, Manchester United
and Arsenal – if Redknapp opens his
chequebook.
He told City A.M.: “We’ve got a good
team and I think if we invest in a few
there’s any reason why we
can’t go a little bit further.
I’d say challenging for the
title is the main aim for
every single team and I don’t
see any reason why we could-
n’t mount a challenge.”
Spurs only ended five points
behind Arsenal last season and
Bale, 21, is desperate to finish
ahead of their north London
rivals for the first time since
1995.
“I hope this is the year we
finish ahead of them,” he
added. “We’ve got just as good
a squad as them and there’s
no reason why we can’t beat
them in the Premier League
Among the Gunners’ squad is Theo
Walcott, who grew up alongside Bale
in the Southampton youth set-up,
and was left out of England’s
World Cup squad – much
to his old team-mate’s
amazement.
“It was a big shock to
me,” said Bale. “I honest-
ly think that with his
pace he adds a different
element to any team.
It’s a shame he didn’t
go.”
Gareth Bale is part of the
launch of Sky Sports 1
and Sky Sports 2 on BT
Vision. Find out more at
www.bt.com/sport
CITYA.M. 9 JULY 2010
Spain’s diet of success
HOLLAND
SPAIN
WORLD CUP 2010
BY FRANK DALLERES
WHEN Holland take on Spain in
Sunday’s World Cup final in
Johannesburg they will come up
against not just a highly accomplished
team, but a whole culture of success.
The Dutch are not short of players
who have plied their trade across
Europe, while the national team boast
a 25-match unbeaten run. But in
terms of claiming the very biggest
prizes in the game, Vicente del
Bosque’s men are in a different liga;
winning silverware is in their blood.
Spain are, of course, reigning
European champions and eight of the
team likely to start at Soccer City were
in the team that triumphed two years
Dutch ace Sneijder
snubs £30m Man
United transfer
▲
PREMIER LEAGUE
BY FRANK DALLERES
HOLLAND star Wesley Sneijder has
scuppered Manchester United’s bid to
sign him by pledging his future to
Inter Milan.
Sir Alex Ferguson targeted the
£30m-rated playmaker after being
impressed by his starring role at the
World Cup and Inter’s Champions
League triumph. But the Dutch No10
has turned his back on a move to Old
Trafford and is targeting more silver-
ware, following last season’s treble.
“It is correct that Manchester
United have approached Inter about
my availability,” said the former Ajax
Spain’s Xavi (left), has won seven major hon-
ours, while Mark van Bommel is Holland’s
most experienced campaigner.
Pictures: ACTION IMAGES, GETTY
ago. Then consider that 10 of Del
Bosque’s likely final XI play for either
Barcelona or Real Madrid – who have a
duopoly on the Primera Division and
are both European behemoths – and
the honours really start to add up.
Eight of the Spain side have scaled
the heights of club football by winning
the Champions League. Five have won
it more than once and in total the
starting XI have accumulated 14 win-
ners’ medals. Eight more have won a
domestic title, all more than once.
Holland, by comparison, have just
Webb gets the nod to achieve lifelong World Cup dream
HOWARD WEBB will achieve a boy-
hood dream on Sunday when he
becomes the first English referee to
officiate a World Cup final in 36 years.
The 38-year-old from Rotherham
will take charge of the showpiece
between Holland and Spain at
and Real Madrid
man. “But I don’t
have the inten-
tion to leave Inter
any time soon. I’m staying, I will play
the whole of next season with Inter.
“My heart is in Milan, with Inter I
won everything last season and
there’s still a lot more to win, like the
European Super Cup, the Italian
Super Cup and the Club World Club –
all nice trophies.
“There are so many more titles to
be won with my current club.
Therefore, I will stay at Inter.”
Sneijder has inspired Holland’s run
to the final in South Africa, pulling
the strings from an advanced mid-
three Champions League winners in
their first team – Wesley Sneijder,
Mark van Bommel and Giovanni van
Bronckhorst – and only five have won
more than one league title. Defender
Joris Mathijsen has never won a major
honour, while forward Dirk Kuyt has
only an FA Cup to his name.
Spain have proven they know what
it takes to succeed, even on the biggest
occasions, and that is sure to stand
them in good stead in their first world
final. Holland – consistent, gifted and
gritty – may have met their match.
Johannesburg’s Soccer City with
Darren Cann and Michael Mullarkey as
is assistants.
Webb becomes the first Englishman
to referee a World Cup final since Jack
Taylor in 1974 when he became the
first referee to award a penalty in the
field position and scoring five goals
along the way.
The 26-year-old was also instrumen-
tal in Inter’s phenomenal last cam-
paign, in which they scooped a fifth
successive league title, the Coppa
Italia and the Champions League.
Ferguson is also said to be interest-
ed in Sneijder’s Inter team-mate
Mario Balotelli, who has also caught
the eye of Manchester City. United
may have the edge as Inter are
thought to want their young striker
Federico Macheda in part-exchange.
Sport | Football
NUMBER OF CHAMPIONS LEAGUE
MEDALS IN STARTING XI
14
3
TOTAL NUMBER OF MAJOR
HONOURS AMONG STARTING XI
58 48
final – ironically to Holland – in the
opening minute of their defeat to West
Germany.
Premier League chief executive
Richard Scudamore said: “It is great to
see their fantastic season topped off
with the ultimate appointment.”
Hodgson expects Gerrard
stay after intitial talks
▲
PREMIER LEAGUE
BY FRANK DALLERES
LIVERPOOL manager Roy Hodgson
has declared himself confident
Steven Gerrard will stay at Anfield
after holding talks with the unsettled
captain for the first time.
Gerrard, 30, is wanted by Real
Madrid and is thought to be weighing
up his future after more than a
decade at Liverpool.
But Hodgson, who succeeded
Rafael Benitez as manager last week,
has made it his priority to hold onto
key men Gerrard, Fernando Torres
and Javier Mascherano, and has been
encouraged by his initial soundings.
“Obviously Steven and Jamie are
the playing heartbeat of the club and
it’s very important we keep people
like that with us,” said the well-trav-
31
KEY AREAS
OUR MAN IN SOUTH AFRICA
TREVOR STEVEN
HOLLAND versus Spain going head-to-
head in the biggest showpiece of them
all throws up the prospect of a feast of
free-flowing football and a number of
fascinating individual battles.
For the purists, it’s the ultimate final
as, arguably, the two most successful
nations never to have won a World Cup
lock horns. But where will the game be
won and lost and who will contest the
key battles. Let’s take a look.
THE VILLA EFFECT
Johnny Heitinga David Villa
Heitinga has had a fantastic World Cup,
leading a Dutch defence which was
questioned by many before the tourna-
ment. Villa is on top form and the main
threat, but often lacks support.
PLAYMAKERS
Wesley Sneijder Xavi
The key area. Both are huge influences
and in magnificent form. Xavi is a pass
master with a great work ethic, Sneijder
cute with tremendous vision. Whoever
comes out on top could tip the balance.
DUTCH THREAT
Arjen Robben Gerard Pique
Robben is a huge threat, cutting in from
the right flank with pace and can expose
Pique, who showed against the Germans
he has a habit of drifting wide and
leaving holes in the centre of defence.
elled former Fulham boss.
“I anticipate there might be a situa-
tion where other big clubs will try to
sign Steven but he gave no indication
that he wanted to leave.
“Nobody at the club wants him to
go so I will be doing my utmost to
make sure he stays. I am confident he
will.”
Hodgson has not had a chance to
talk to Torres due to his continued
involvement at the World Cup, but
hopes the Spain striker will buy into
his vision.
He added: “If he sees progress I am
confident that he won’t want to go
anywhere else.”
Serbia striker Milan Jovanovic yes-
terday became the first arrival of
Hodgson’s tenure when the 29-year-
old completed a free transfer from
Standard Liege.