Leading Financial

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Issue 1,237 Friday 8 October 2010

BUSINESS WITH PERSONALITY FREE
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EU TARGETS
BONUSES IN
POWER GRAB
REGULATION
▲

BY MARION DAKERS
THE EUROPEAN Union charged ahead
with its crackdown on the banking
industry yesterday, as several bodies
outlined tougher-than-expected rules
“Whether this would achieve the
desired risk-aware behaviour from
traders is doubtful, as there would be
more pressure to put up salaries so
that proposed bonuses fall within
acceptable levels,” said Nicholas
Stretch, a partner at law firm CMS
Once CEBS publishes the outcome
of yesterday’s meeting, it will spend a
month consulting on its proposals.
The panel is also thought to have
discussed the controversial banking
super-regulator, which was approved Malcolm “Streaky” Calvert has served a third of his jail sentence Picture: Micha Theiner
by EU legislators last month and will

on pay, bonuses and tax that could
radically alter the City.
Finance watchdogs from the 27
member states met in London yester-
day to flesh out the first Europe-wide
rules to curb bankers’ pay, agreed ear-
lier in the year.
The Committee of European
Banking Supervisors (CEBS) is expected
to publicly announce its decisions
today, but insiders told the press yes-
terday that the panel favoured a prohi-
bition on bonuses containing more
than 20 per cent cash.
The ban would be much harsher
than the European Parliament’s deci-
sion in June to cap the cash portion of
Cameron McKenna
He added: “However, even imple-
menting a framework for limiting pay
creates a precedent and could be fol-
lowed in due course by all sorts of
other limits and caps.”
CALVERT WALKS
have the power to overrule national
authorities. The current European
Commission president, Jose Manuel
Barroso, hopes to introduce the
London-based watchdog in January.
Meanwhile, the Commission yester-
day outlined its vision for a 0.5 per
cent tax on all banking pay and profit,
called the financial activities tax (FAT),
FREE AFTER JUST
SEVEN MONTHS
to be used to fund global development
projects.
The Commission said it would pre-
fer to see a global tax that took a slice
of every financial transaction, also
known as a Tobin tax, but accepted it
would be impractical without global
support. Last month, EU finance min- services regulatory practice at Berwin
▲

bonuses at one third. The EU had
already specified that 60 per cent of
bonus pay must be deferred for at least
three years.
The restriction would also outstrip
the Financial Services Authority’s
plans for a 50 per cent upper limit on
cash bonuses. The FSA, which has a
representative on the CEBS panel,
declined to comment last night.
“It is time to fundamentally change
the bonus culture that contributed to
this crisis,” said Arlene McCarthy, a
Labour MEP who brokered the basic
rules in the European Parliament.
“This limit is essential to cutting the
incentives for excessive risk taking.”
CEBS is understood to favour a cap
on bonus payments, linked to a multi-
ple of basic salary that will differ
between institutions depending on
the financial risks involved.
EC head Jose Manuel Barroso (top) has set a
January deadline for super-regulators, a move
opposed by the Treasury’s Andrew Tyrie
isters failed to agree on a similar levy.
The plans are likely to face stiff
opposition when presented to the G20
at its meeting in November, in what
the EU hopes will be the start of a
worldwide push for banking levies.
The CBI warned last night that any
such tax will ultimately be paid for by
the customers of banks, and added: “A
financial activities tax within Europe
would encourage financial services
companies to relocate their operations
outside the EU, hurting the economies
of member states, and especially the
UK owing to the importance of the
City as a global financial centre.”
The Association for Financial
Markets in Europe said: “Tax is not a
regulatory tool and it should not be
used as a substitute for effective finan-
cial regulation.”
NEW RULES: P2, ALLISTER HEATH: P2
EXCLUSIVE
BY VICTORIA BATES
MALCOLM Calvert, the ex-Cazenove
partner jailed earlier this year for
insider dealing, has been released
from jail after serving under a third
of his 21-month sentence, City A.M.
can reveal.
His early release comes as a smack
in the face for the Financial Services
Authority, which has gone all out this
year in its efforts to convince the City
it is getting tough on financial crime.
At the time of Calvert’s conviction
in March, FSA enforcement director
Margaret Cole said the sentence was
proof the regulator would “take the
strongest action” against anyone
involved in insider dealing, describ-
ing it as “another milestone” in the
FSA’s fight against market abuse.
Sidney Myers, head of the financial
Leighton Paisner, stressed that prison
authorities, not the FSA, would have
called the shots on Calvert’s early
release. But he said: “Given the FSA’s
desire to be seen to crack down on this
type of financial crime, it will clearly
be disappointed Calvert was not
required to serve a longer sentence”.
Calvert, 65, known as “Streaky”,
will have to wear an electronic tag-
ging device so that officials can mon-
itor his movements.
Sources close to the process said he
was eligible for a shortened sentence
because he was a low-risk “Category
D” prisoner due to his age, the type of
offence and an impeccable behaviour
record while behind bars.
It is unclear whether his lawyers
will elect to proceed with an appeal
against his sentence, which is still
pending even after his release.

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 2 News
Time to nip next bubble in the bud
EDITOR’S LETTER
ALLISTER HEATH
REGULAR readers will know that I’m
reasonably optimistic when it comes
to short-term growth – I believe that
the economy will slow to an uncom-
fortably modest pace over the next
few months but that we won’t tip into
a double-dip recession. Yesterday’s
manufacturing figures, which showed
that the recovery in factory produc-
tion accelerated further in August,
with output growing six per cent over
the past year, the best performance
since 1994, confirmed this view.
But whereas the overall UK econo-
my will continue to grow, albeit at a
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WHAT THE OTHER PAPERS SAY THIS MORNING
UK AND FRANCE IN TALKS ON TRIDENT
MAINTENANCE
An agreement being negotiated by
the UK and France would see British
nuclear warheads serviced by French
scientists and break with half a centu-
ry in which neither country has col-
laborated on its independent
deterrent. Ahead of a summit in
three weeks, the governments are
close to agreeing that Britain would
use a French laboratory to help main-
tain and service its 160 warheads.
INVESTORS SEEK $12BN TO GRAB
PRIVATE EQUITY ASSETS
Three of Europe’s biggest investors in
second-hand buy-out and venture
capital assets are raising almost
$12bn to scoop up a flood of private
equity interests being sold at a dis-
count by banks and financial institu-
tions. Coller Capital has kicked off a
$5bn fundraising, while Axa Private
slowing rate, there are plenty of wor-
rying developments that mean that
longer-term prospects are looking
increasingly bleak. The first is the con-
tinued onslaught on the City, as
demonstrated by the EU’s bid to limit
bonuses to a certain multiple of base
pay. But there are also other, more
macroeconomic threats. One that
almost keeps me awake at night is the
continuing growth in emerging
economies’ forex reserves, a trend
which shows that central banks have
learnt nothing from the boom and
bust of the noughties.
One of the main drivers of the bub-
ble had nothing to do with bonuses or
commercial bankers: it was caused by
the fact that Asian and Middle Eastern
economies recycled their vast export
earnings into huge reserves of dollars,
snapping up trillions of dollars worth
of government bonds. This helped
fund the massive US trade and budget
deficits, pushed down yields on all
debt and helped to promote the mad
credit binge of the noughties. It is a
FACT BOX | EUROPEAN BANKING LAWS
EU’S banking rules at a glance
● PAY RULES
The European Parliament last week
endorsed a skeleton law for the first EU-
wide curbs on excessive pay in the bank-
ing sector from January 2011.
● CEBS MEETING
The Committee of European Banking
Supervisors (CEBS), a panel made up of
financial watchdogs from each member
state, is the body that conducted the
banking stress tests in July. It must now
flesh out the practical details of the bank-
ing pay measures. The panel concluded a
two-day meeting yesterday evening to
draft guidance for banks and supervisors
to implement the new rules, such as by
defining some of the generic terms used
in the law.
● STAFF LISTS
The basic rules force banks and invest-
ment firms to list staff who have a mate-
rial impact on the company’s risk profile.
Equity wants to raise $3.5bn and
Pantheon Ventures this week raised a
new $3bn fund.
ALCOA SEES FALL IN NET INCOME
Alcoa, the US’s biggest aluminium
producer, kicked off the third-quarter
earnings season by reporting a fall in
net income as an uptick in demand
for industrial goods failed to offset a
decline in prices over the quarter. The
company said that a series of facility
shutdowns resulted in a spike in one-
time charges, but forecast faster
growth in the developing world.
FIRST PERUVIAN TO WIN NOBEL
LITERATURE AWARD
The Swedish Academy has awarded
the 2010 Nobel Prize in literature to
novelist and essayist Mario Vargas
Llosa. He is the first Peruvian – and
the sixth Latin American – to win the
prestigious literary accolade. Vargas
Llosa, 74, is the author of 16 novels,
three short-story volumes, seven plays
and over 20 works of non-fiction.
shame that instead of trying to make
sure that these vast imbalances – the
West spends too much and saves too
little, while China deliberately under-
values its currency to boost exports
and forex reserves – are tackled, gov-
ernments have preferred to resort to
populist City-bashing.
Meanwhile, the imbalances are get-
ting worse, not better, guaranteeing
another disaster at some point. The
IMF says that the current account sur-
plus of developing Asian economies
will reach $731.2bn in 2015. That is 67
per cent more than the 2008 peak, as
Societe Generale points out. The US is
forecast to have a current account
deficit of $600bn, only marginally less
than the 2006 peak of over $800bn.
This implies that the reserves of these
developing Asian countries will surge
from an already massive $3.4 trillion
in 2010; global reserves may eventual-
ly exceed $10 trillion. Most of these
will be parked in bonds; while handy
for profligate western governments
that are racking up ridiculously large
The list should include at least senior
management, risk takers, staff engaged
in control functions and any employee
whose total pay package, including pen-
sion, takes them into the same pay pack-
age as senior management.
● BONUS DEFERRALS
The rules also specify that a “substantial
portion of the variable remuneration
component, such as 40 to 60 per cent”
should be deferred over an “appropriate
period of time”. The exact percentage
and timescale have been left for CEBS to
agree, and reports yesterday said the
rules would be at the stricter end of the
scale.
● THE MAKE-UP OF BONUSES
The European Parliament also said a
“substantial portion” of an employee’s
non-fixed pay should consist of shares or
equivalent, and that guaranteed bonuses
should be banned. CEBS is now expected
MULTIPLIER HELPS TO DOUBLE DYSON
PROFITS
A hand dryer that costs in the region
of £700 and a desk fan that sells for
about £200 has helped Dyson nearly
to double its pre-tax profits to
£163.8m last year. The Air Multiplier,
which was launched in Britain, Japan
and the United States this summer
after going on sale in Australia late
last year, has proved a hit despite its
hefty price tag.
FORGET ASSET BUBBLES, KRAFT
OPENS £9M CHEWING GUM LAB
Kraft has set up a new gum and
candy research centre in Europe to
ensure that changes in chewing gum
taste, texture and packaging have the
right appeal in each market. The US
food giant hopes that the new €10.4m
(£9m) facility at Eysins, Switzerland,
will help it to cash in on the growing
global demand for chewing gum.
budget deficits, the result will once
again be to keep interest rates and
yields at permanently low levels.
Eventually, this is bound to rekindle
bubbles across asset classes, including
property and in emerging markets, as
well as put upwards pressure on con-
sumer price inflation.
The answer is not to declare a trade
war on China, as short-sighted
American politicians are threatening;
this would trigger tit-for-tat protec-
tionism and plunge the world into a
depressionary spiral. Instead, we must
boost savings rates in the West, while
negotiating with China to induce it to
allow the renminbi to rise gently to a
more reasonable level. This would
reduce its trade surplus and its accu-
mulation of forex reserves. The best
way to make the West less dependent
on imported capital would to intro-
duce properly funded retirement
schemes. Unless we urgently deal with
these issues the next crash, when it
inevitably comes, will be truly devas-
tating. allister.heath@cityam.com
to say bonuses should be no greater than
a certain multiple of a salary, with built-in
flexibility for national regulators to allow
less risky firms to award bigger bonuses.
And also, those deemed crucial to the
economy could be more heavily regulat-
ed.
● EUROPEAN SUPER REGULATOR
CEBS is also thought to have discussed
the introduction of the three-branch
European super-regulator, which will
eventually replace the CEBS body. A law
introducing the watchdog passed
through the EU Parliament last month.
The London-based body will have the
power to overrule domestic regulators
such as the Financial Services Authority.
● WHAT HAPPENS NEXT?
Once CEBS publishes its decisions, which
are expected today or early next week, it
will consult with affected parties for one
month before making a final proposal.
RECESSION SEES RISE OF THE SILVER
APPRENTICE
The number of over-50s taking up
apprenticeships has more than dou-
bled in two years, official statistics
have revealed. The figures show that
older workers have been forced to
retrain and learn new skills following
the recession to find jobs, according
to age charities. The statistics show
the number of 50-plus apprentices
leapt from 2,605 in 2007-08 to 5,376
the following year.
AUSTRALIAN DOLLAR HITS 27-YEAR-
HIGH
The Australia dollar has hit an historic
27-year-high after stronger than
expected employment figures boosted
the currency's value. This afternoon
the dollar hit 98.74 US cents, the high-
est level since January 1983, when the
currency was first floated and valued
at 97.65 US cents.
CITYA.M. 8 OCTOBER 2010
Sinochem offer
for Potash Corp
is now unlikely
▲
COMMODITIES
SINOCHEM, China’s largest fertiliser
company, may struggle to get state
financial backing for a takeover of
Canada’s Potash Corp, making a deal
unlikely, it emerged last night.
China’s government has indicated
it would prefer Sinochem to finance
any takeover without credit from
state banks, which is likely to put the
transaction beyond the company’s
reach.
Sinochem may still consider seek-
ing a minority stake, a deal that
would be easier to fund.
China’s Sinochem has been touted
as the most likely company to come
up with a competing bid to rival
London-listed BHP Billiton’s $39bn
(£24.6bn) hostile offer for Potash
Corp. Sinochem could not be reached
for immediate comment.
CEBS has no power to stray beyond the
framework laid down by the European
Parliament last week, and the final rules
must get the thumbs up from the
European Commission. This process also
allows for challenges from member
states and the European Parliament, so
there is scope for further argument.
Once in place, the remuneration curbs
will be reviewed by the European
Commission on or before 1 April 2013.
CEBS is set to be replaced by the new
super-regulator as early as this January.
● WHAT OTHER RULES ARE IN THE
PIPELINE?
The European Parliament is currently try-
ing to finalise the Alternative Investment
Fund Managers Directive, which will
impose extra checks on hedge funds
operating within the bloc. On a global
level, the Basel III capital rules governing
banks also face final approval at the G20
summit in November.
RUSSIAN OIL GIANTS COMPLAIN OVER
FIELD ACCESS
Russia’s decision to restrict access to
the first major oil-and gas-field ten-
der in five years has caused outrage
among the country’s industry titans,
who say the Kremlin's claimed push
for transparency and fair access to
the country's energy reserves is going
nowhere. Russia has tightened its
control of the oil and gas sector in
recent years.
SPAIN’S BANESTO SEES PROFITS
DECLINE 52 PER CENT
Banco Español de Crédito SA reported
a 52 per cent drop in third-quarter
net profit, as it set aside more cash to
cover souring loans and as its lending
business weakened. The bank, better
known as Banesto, said net profit was
€68.9m (£60.4m) in the three months
ended 30 September, down from
€144.1m a year earlier.
CITYA.M. 8 OCTOBER 2010
Cooper tops Labour MP’s poll
POLITICS
▲
BY DAVID CROW
YVETTE Cooper has topped the ballot
in Labour’s shadow cabinet elections,
putting her in poll position to
become the next shadow chancellor –
if she decides to accept the job.
Cooper’s husband Ed Balls, a key
ally of Gordon Brown, has coveted the
top economic brief for several years,
leading to suggestions she will stand
aside to help him secure the post.
But Ed Miliband, the recently-elect-
ed Labour leader, has told friends he
Footie tycoon
hedges stake
in Barclays
BANKING
▲
BY MARION DAKERS
THE BILLIONAIRE owner of
Manchester City football club has
moved to hedge himself against a
drop in Barclays’ share price, invest-
ment bank Nomura confirmed last
night.
Sheikh Mansour bin Zayed al
Nahyan has done a deal with Nomura
to protect the value of his entire
£2.4bn stake, amounting to 6.2 per
cent of total Barclays shares.
Nomura said PCP3 will convert
more than 131m warrants into
shares, which will become subject to
the hedge.
Nomura will simultaneously place
around 220m shares with institution-
al investors, in a complex deal to
hedge the sheik’s PCP Gulf Invest 3
fund, it said in a statement.
Several reports said yesterday the
220m shares had been sold for
between 290p to 295p, a slight dis-
count to Barclays’ closing price of
304p yesterday.
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wants Cooper, the former work and
pensions secretary, to become shad-
ow chancellor. He is said to fear that
Balls could prove a divisive figure,
and is considering making him shad-
ow home secretary instead.
Cooper won 232 votes in the ballot
of Labour MPs, which was announced
last night, compared to 179 for Balls.
He came in third place behind ex-
housing minister John Healey, on 192.
Chancellor George Osborne has
told City A.M. he would prefer it if
Balls were to shadow him, partly
because he would relish the political
“The exercise and hedging mark
the final completion of a strategy that
locks in a significant gain on Barclays
shares for PCP3 while retaining fur-
ther upside,” explained Nomura in a
statement.
“PCP3 will seek to continue to
maintain a close commercial and
strategic relationship with Barclays in
the future.”
Sheikh Mansour, a member of the
Abu Dhabi royal family, and the
Qatar sovereign wealth fund helped
prop up Barclays during the credit cri-
sis in 2008.
ANALYSIS l Barclays
p 304.05
340
320
300
12 Jul 30 Jul 19 Aug 9 Sep
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challenge, but also because he thinks
it would be easier to blame him for
the economic errors of the Blair-
Brown years.
Labour stalwarts like Alan Johnson,
Andy Burnham and Tessa Jowell were
re-elected to Labour’s front bench,
but there were big disappointments
for some well-known MPs.
Leadership contender Diane Abbot
failed to win enough support to
become one of 19 shadow cabinet
ministers, as did ex-Welsh secretary
Peter Hain and Ben Bradshaw, the for-
mer culture secretary.
Kerviel has received backing from the French public
SocGen says it won’t ask
Kerviel for €4.9bn fine
BANKING
▲
BY STEVE DINNEEN
7 Oct SOCIETE Générale has distanced itself
from the record €4.9bn (£4.3bn) fine
slapped on rogue trader-turned-
national-hero Jerome Kerviel after an
astonishing backlash in France.
Kerviel was jailed for five years,
with two suspended, for several
offences including forgery. But the
astronomical fine has caused indig-
29 Sep nation in his home country, solidify-
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232
VOTES
192
VOTES
Top three vote winners: Yvette Cooper, John Healey and Ed Balls
▲
Picture: GETTY
ing sentiments that he was used as a
scapegoat for the banking crisis and
prompting SocGen to condemn the
fine.
A spokesman told a radio station:
“It is out of the question to claim
such a sum from one man... Do we
intend to indebt Kerviel for 177,000
years, as I’ve seen written? The answer
is no. We are a responsible bank.”
Kerviel was free on bail last night,
awaiting an appeal against the sen-
tence.
*
*
News 3
179
VOTES
Picture: REUTERS
Betfair will
sell stock to
top investors
GAMING
BY STEVE DINNEEN
BETFAIR expects its £1.5bn IPO to be
fully subscribed by “high quality”
institutional investors, according to
sources close to the firm.
Bosses began a two-week roadshow
yesterday to convince investors to
take up the share offer.
The source told City A.M. the firm is
confident the 10 per cent stake up for
grabs will be taken up by top class
investors such as BlackRock and
Invesco.
The world’s largest betting
exchange announced a price range of
between £11 and £14 a share yester-
day, giving it an equity value of
between £1.16bn and £1.48bn.
The firm does not plan on raising
new capital, with the stock avail-
able being sold by current share-
holders. Founders Ed Wray and
Andrew Black both stand to make a
paper windfall of £17m from the
sale.
Black confirmed this week at the
firm’s annual meeting he will step
down as non-executive director.
He will maintain an interest as a
shareholder but leave the day to day
running to Wray.
P6: MONEYBOOKERS FLOAT
 4 Focus on Public Sector Pensions CITYA.M. 8 OCTOBER 2010

WHAT DO YOU MAKE OF LORD HUTTON’S RECOMMENDATIONS?

JOHN CRIDLAND | CBI ANTOINE BOZIO | IFS

“ He is clear that traditional final salary

defined benefit schemes are not a viable way for-
ward. Everybody needs to understand the true
scale of pension liabilities. Every year there is a
£10bn gap between what public sector employ-
“ Lord Hutton's interim report on public
service pensions recommended an increase in
employee contributions in the short term. Any
final recommendations should consider how cost
effectively public service pensions attract and

” ”
ees and employers contribute and the value of the retain the desired calibre of staff in the
benefits that the state promises to them. public sector.

PETER BOOTH | INSTITUTE OF ECONOMIC AFFAIRS

“ Many of the suggestions for long-term reform of the schemes are sensible but the report ducks some of the cru-

”
cial issues. We must put the accounting for public sector pension schemes on a proper economic footing. Furthermore, the
full costs of public sector schemes must be borne by employers and employees.
Lord Hutton said public sector pension payouts had increased by a third in a decade

Public sector
pensions cut
than double in size to £10bn by 2015,

▲
POLITICS
BY DAVID CROW largely due to longer lives.
Pension payouts from five leading
MILLIONS of public sector workers public sector pension schemes have
will have to contribute more to their increased by around a third in the last
pensions, if proposals put forward by decade, Hutton said.
Lord Hutton are adopted by the gov- A one per cent increase in contribu-
ernment. tions would equate to a £1bn saving
The former Labour work and pen- for the government, suggesting a
sions secretary, who is leading a com- hefty hike in the amount employees
mission into public sector pensions, must put into their pension pot in
also said that employees in the public future years.
sector would likely have to work Hutton, who latterly served as
longer and switch from final salary defence secretary under Gordon
schemes to ones that are calculated Brown, recommended that the armed
using average earnings over a worker’s forces should be spared from any
entire career. increase. He also warned against a rise
Hutton said: “The final salary link in contributions for the very low paid,
in public service pensions can lead to who could drop out of pension saving
high flyers getting almost twice as altogether and cost the state more in
much back in pensions than those on the long run.
more modest earnings for the same But Hutton said it would be wrong
amount of pension contributions.” to switch public sector workers to
He said the gap between employee defined contribution schemes, which
and employer contributions and the are the norm in the private sector, and
value of pensions paid out by the warned against a “race to the bottom”
state, currently £4bn, would more in the British pensions system.

ANALYSIS l Mean value of total benefits as a percentage of pay across all employees
30
25.1 2001 2005
23.7
25
percentage of current earnings

20

15 12.6 13.1

10 8.7 8.2

All Public sector Private sector

Cuts to civil service pay-offs

month’s notice.
▲

POLITICS
The government has also agreed to
THE government has agreed a new protect the low paid. The minimum
redundancy scheme with five civil payoff will be calculated as if the
service unions, ahead of a wave of worker is earning at least £23,000,
public sector layoffs when spending even if their salary is considerably
cuts start to kick in. less.
Firemen’s union the FDA, Prospect, But highly-paid staff will have their
the Prison Officers’ Association, GMB salary capped at £149,820 when work-
and Unite have all agreed to reduced ing out their pay-offs.
terms for redundancy payouts, which Francis Maude, minister for the
will now be capped at one year’s cabinet office, said: “In today’s tough
salary for compulsory lay-offs and 21 economic climate, we would be fail-
months for voluntary redundancies. ing in our duty to the tax-paying pub-
All civil servants will be given three lic if we had allowed excesses.”
 6 News
HSBC hit by US watchdogs
▲
BANKING
BY HARRY BANKS
THE Federal Reserve said yesterday
that it issued an order against HSBC
North American Holdings requiring
the bank to improve company-wide
risk management, including prac-
tices to prevent money laundering.
It said that within 30 days, the
bank’s board of directors must sub-
mit a plan for strengthening over-
sight of its compliance
risk-management programme. The
plan must show how risk is being
managed within and across business
lines, legal entities and jurisdictions
BT must give
access to its
fibre network
▲
MEDIA
BY STEVE DINNEEN
OFCOM yesterday said it will force BT
to allow its rivals access to the former
state phone firm’s superfast fibre
broadband network.
BT will also have to wholesale its
infrastructure of telegraph poles and
underground ducts in a bid to
increase competition for superfast
internet to rural areas.
The decision supports government
plans laid out earlier this year to pre-
vent a “digital divide” making rural
areas commercially unviable.
TalkTalk has already announced it
will sign up to the new scheme to
offer broadband speeds of over 25
megabits per second to its customers.
Ofcom said it will not immediately
cap the prices BT is able to charge for
access to its infrastructure but they
will be subject to review and could be
slashed if deemed anti-competitive.
Ofcom’s chief executive, Ed
Richards said: “The development of
the UK’s superfast broadband future
is well underway with the roll-out of
services in large parts of the country.
“Today Ofcom has finalised a clear
regulatory framework to promote
investment, competition and innova-
Investcorp plans a London listing of its Over a million riders have
Moneybookers online payments firm used Mayor Boris’ bikes
▲
FINANCIAL SERVICES
BY HARRY BANKS
INVESTCORP, the Bahrain-based
investment bank, is understood to be
eyeing a float of Moneybookers, the
fast-growing European online pay-
ment firm it tried to sell last year.
Investcorp has hired Morgan
Stanley and Jefferies to help prepare
for a stockmarket listing, the people
said. Bank of America Merrill Lynch is
also likely to have a role, two of the
people added.
in which the bank operates.
HSBC is also required to submit to
the Fed a company-wide compliance
risk assessment that contains recom-
mendations for improving controls
and provides an evaluation of its com-
pliance risk exposure.
Last February, a senior US senator
said he was referring HSBC Holdings
to its US bank regulator in connec-
tion with questionable accounts it
provided for senior Angolan officials.
Senator Carl Levin, who chairs the
Permanent Subcommittee on
Investigations, said he was referring
the issue to the Office of the
Comptroller of the Currency, an arm
tion to enable as many consumers as
possible to benefit from these excit-
ing new services.”
The ruling means BSkyB will be
able to offer superfast broadband to
rural homes for the first time, open-
ing up a new front in the war
between the two media giants.
Sky was incensed by a ruling earli-
er this year forcing it to wholesale its
Premier League football to rivals
including BT and Virgin Media for a
fixed price.
The move allowed BT to mount a
serious challenge to Sky’s dominance
in the pay-TV market for the first
time. However, BT has refused to
announce subscriber figures amid
rumours it has failed to convince its
customers to sign up.
ANALYSIS l BT Group 151.90
155 p
145
135
12 Jul 30 Jul 19 Aug 9 Sep
News of the potential flotation
emerged as another Internet-focused
company, Betfair, opened its books on
a planned flotation that would value
the online betting exchange at up to
£1.5bn.
London-based Moneybookers hired
JPMorgan to explore a potential sale
last year but later shelved the auction.
The online payments business said
it had been approached by major
Internet companies, US payment
processors and private equity firms
about a potential deal and it could
of the US Treasury, due to concerns
that tainted foreign money might be
flowing into the US.
The action caps a turbulent time
for HSBC, which last month under-
went a shake-up of its senior manage-
ment.
Earlier this month, two clients of
HSBC Holdings were convicted of fail-
ing to report more than $49m (£31m)
in income to the US Internal Revenue
Service.
The two Miami Beach-based devel-
opers, Mauricio and Leon Cohen,
used shell enterprises and offshore
tax havens in the Bahamas and else-
where to conceal assets and income.
7 Oct
29 Sep
fetch more than €400m (£349.7m).
Moneybookers competes with
online auctioneer eBay’s Paypal serv-
ice, and with money transfer compa-
nies including Western Union Co for
“peer-to-peer” business such as help-
ing expatriates send money home.
It also handles payments for gam-
bling websites.
Investcorp is thought to be hoping
the London listing, of perhaps a third
of the company, could place a value of
more than €500m (£438m) on the
whole company.
London Underground set
to cut an extra 400 jobs
▲
TRANSPORT
LONDON Under ground (LU) is to axe
up to 400 further permanent back-
office staff in a bid to cut costs and
improve efficiency.
These cuts come on top of LU’s
plans to reduce 800 ticket office jobs,
which is currently at the heart of a
bitter dispute with trade unions RMT
and Transport Salaried Staffs’
Association (TSSA) and the reason
behind a series of strikes.
On top of the 400 cuts LU also said
Power elite: (clockwise from top left) US
First Lady Michelle Obama, Kraft’s Irene
Rosenfeld, German chancellor Angela
Merkel, Burberry’s Angela Ahrendts,
Anglo American boss Cynthia Carroll and
Oprah Winfrey Pictures: REUTERS/ GETTY
▲
TRANSPORT
LONDON Mayor Boris Johnson’s flag-
ship cycle hire scheme passed the mil-
lion journey milestone yesterday –
ten weeks after its launch.
More than 90,000 people have
signed up as members, with around
20,000 journeys being made every
weekday, with the average journey
made under 30 minutes.
Johnson said: “A million thank
yous go to Londoners for the warmth
in which they have embraced our
CITYA.M. 8 OCTOBER 2010
it will leave an equivalent number of
vacancies unfilled.
RMT has hit out at the proposed
cuts calling the move “savage”
LU’s managing director Mike
Brown said LU is facing financial pres-
sures and had a duty to be effective
and efficient.
He said: “LU is vital to London and
the wider UK economy and we must
be fit to deliver our priorities.”
The unions plans two strikes in
November over the 800 ticket office
jobs that are due to be axed.
Rosenfeld is
second on
power list
▲
POWER LIST
BY VICTORIA BATES
KRAFT chief executive Irene
Rosenfeld is the second most power-
ful woman in the world, outranked
only by American First Lady Michelle
Obama, according to Forbes maga-
zine.
Rosenfeld moves four places up the
power rankings from last year’s
Forbes list in the wake of Kraft’s
£11.5bn play for chocolate maker
Cadbury earlier this year.
German chancellor Angela Merkel
dropped from first to fourth place in
2010 after four consecutive years at
the top, while chat show host Oprah
Winfrey took third place and US sec-
retary of state Hillary Clinton came in
fifth.
Other influential businesswomen
who made the cut this year included
Pepsi chief executive Indra Nooyi in
sixth place; Gail Kelly, chief executive
of Australian bank Westpac, in
eighth; Cynthia Carroll, chief execu-
tive of miner Anglo American, in 14th
place; Carol Bartz, chief executive of
Yahoo, in 42nd position; and
Burberry chief executive Angela
Ahrendts, ranked 97th on the list.
Sallie Krawcheck, president of glob-
al wealth and investment manage-
ment at Bank of America Merrill
Lynch, was placed 44th, while Axa
Private Equity chief executive
Dominique Senequier scraped into
the list at 100.
beautiful blue bikes. The zest in
which people have taken to two
wheels and joined the cycling revolu-
tion we are engendering in the
Capital has gladdened my heart. Plus
the doom mongers and naysayers
who darkened my days with pre
launch predictions of cycle hire woe
have been vanquished.”
The cycle hire sponsor, Barclays, is
offering the person who made the
millionth journey, plus three of their
friends, free annual membership of
the scheme for five years.
 8 Focus on Eurostar
Eurostar buys
new fleet in
£700m deal
▲
TRANSPORT
BY EMMA SADOWSKI
EUROSTAR will buy 10 new trains for
£700m to add to its existing fleet as it
extends services to Amsterdam and
Geneva.
The upgrade will be funded by
Eurostar through cash and bank
loans. The move will significantly
improve Eurostar’s fleet with faster
trains, capable of travelling up to
320kph.
The new trains, to be manufac-
tured by Germany’s Siemens, are
expected to cut Paris travel time to a
little over two hours.
The train company also expects the
upgrades to allow the operator to
carry more than 900 passengers by
adding 20 per cent more seats to the
trains. Eurostar said the new fleet
would be equipped with wi-fi and on-
board services including real-time
travel and destination information
and interactive entertainment.
Eurostar has also unveiled plans to
add Amsterdam and Geneva to its list
CITYA.M. 8 OCTOBER 2010
ANALYSIS l Eurostar Routes
French anger as
Current routes New routes
Siemens wins
London
Amsterdam
new trains deal
TRANSPORT
▲
Ashford
Brussels A ROW erupted over the choice of
Calais trains for the Channel Tunnel as
France hit out a decision by Eurostar
Lille to switch to a German manufacturer
for its next generation of high-speed
trains.
of destinations as the group looks to Eurostar said Siemens will supply
expand into the rest of Europe. Paris 10 trains for its fleet. Until now
Travel time to Amsterdam, on the Disneyland French rival Alstom, manufacturer
new trains, is expected to take just Resort-Paris for France’s high-speed TGV network,
under four hours, while travel time to Geneva has built the Eurostar trains.
Geneva will take around five hours. Alstom and the French government
Eurostar plans to encourage more immediately condemned the decision
passengers to choose high-speed train on safety grounds.
travel. The firm’s chief executive, Bourg- Environment minister Jean-Louis
Nicolas Petrovic, said the new trains Borloo and Transport minister
and refurbished fleet would make st Maurice Dominique Bussereau said in a joint
Eurostar “the obvious choice for statement they were “amazed” by the
short-haul European travel”. Avignon move.
Next weekend, German state- Eurostar is owned by rail firms in
owned company Deutsche Bahn Britain, France and Belgium.
plans to test one of its high-speed
trains on a run through the Channel ANALYSIS l Siemens 77.14
Tunnel as it contemplates a direct 80 € 7 Oct
London-German service.
FAST FACTS | EUROSTAR UPGRADE
76
● Two new routes: Amsterdam and Geneva.
● Eurostar said it will also redesign its existing
fleet of 28 trains. 72
● Eurostar says it commands 80 per cent of
the market between London and Paris.
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
CITYA.M. 8 OCTOBER 2010 News 9

Apcims CEO David

Bennett quits role
It is understood Bennett will now

▲
EU ECONOMY
BY STEVE DINNEEN
THE Association of Private Client
Investment Managers and
Stockbrokers (Apcims) chief executive
David Bennett stepped down at the
organisation’s annual Brussels con-
ference yesterday.
Philippe Maso (near left) has stood down as CEO of Axa Insurance Bennett’s departure follows that of
John O’Neill (far right) and Steve Hardy (near right) will run the the body’s head of regulation Ian
new business and report in to Group CEO Paul Evans (far left). Cornwall.
focus on his role as deputy chairman
of Europe Analytica, the public affairs
company he co-founded in Brussels.
Bennett joined Apcims in 2007
after a stint with the City of London’s
EU office.
He is a well known figure in the
City, working closely with the FSA,
Bank of England, Treasury, DTI and
the Cabinet Office, working across
London, Paris and Frankfurt.

Axa rejigs UK
insurance as
its chief exits
will lead the commercial insurance
▲

INSURANCE
BY MATTHEW WEST
AXA UK Insurance chief executive,
Philippe Maso, has stepped down
from his role after two years follow-
ing a strategic review that will see the
company reorganise into two distinct
business units.
Axa said one unit will focus on
commercial business with the other
focusing on consumer business.
It said the change would give it a
“sharper market focus and closer
alignment to customer needs.”
Each business will be headed by a
new chief executive, with their own
management teams, who will take
direct responsibility for profitability
and report to Axa UK group chief
executive, Paul Evans.
Maso is believed to be in negotia-
tions about his future within the Axa
Group. City A.M. understands he was
less than enthusiastic about taking
over one of the chief executive roles
having been in charge of both the
commercial and personal insurance
businesses until recently.
John O’Neill, currently chief execu-
tive of Axa Ireland, will oversee the
setting up of the new businesses and
team on an interim basis while Axa
searches for a permanent CEO.
Steve Hardy, currently managing
director of Axa Direct will take over
the new role of chief executive of the
consumer business and will join the
Axa UK executive committee.
Hardy was a founding director of
Swiftcover and was appointed manag-
ing director of Axa Direct after its
acquisition of the online insurer in
2007. His appointment, along with
the appointment of the new chief
executive of the commercial busi-
ness, is subject to approval from the
Financial Services Authority.
Evans said: “I would firstly like to
thank Philippe for his vast contribu-
tion to Axa during his time in the UK
and wish him well for the future.
Moving to this structure will give our
people who are closer to our markets
a greater sense of empowerment and
accountability, which will result in us
being better placed to respond to
market challenges as well as distribu-
tor and customer needs. As our port-
folio in the UK is now a number of
specialist businesses, this change
brings the insurance business in line
with the rest of our UK operations.”

IMF chief warns against

currency manipulation
Great Depression, have jumped to the
▲

CURRENCIES
THE spirit of global economic cooper-
ation, first forged in 2008 during the
darkest days of the financial crisis,
was weakening as the recession gives
way to an uneven and shaky recovery,
the head of the International
Monetary Fund (IMF) said yesterday.
“Many do consider their currency a
weapon. That is not good for the glob-
al economy… There is no domestic
solution to a global crisis,” said
Dominique Strauss-Kahn.
Fears of global currency and trade
wars, which were key factors in the
top of the agenda at IMF and World
Bank meetings this weekend, and are
also expected to be a primary topic of
discussion when the Group of Seven
finance leaders gather today.
These meetings are expected to pro-
vide a forum for intense discussions
about efforts to persuade China to let
its currency rise.
“If one lets this slide into conflict,
or forms of protectionism, then we
run the risks of repeating the mis-
takes of the 1930s,” World Bank presi-
dent Robert Zoellick said yesterday
echoing Strauss-Kahn’s fears.
 The Capitalist
10
MILIBAND
JOINS IN
THE FAMILY
MAKEOVER
MUCH has been made of the image trans-
formation undergone recently by Justine
Thornton, Ed Miliband’s long-term part-
ner, who stepped out at the Labour party
conference last week sporting a fresh
make-up style and new elfin haircut.
But not much has yet been said about
the woman responsible for said makeover
– who The Capitalist can reveal is none
other than Charlotte Cave, hairdresser to
the stars. Cave, who travels to her famous
clients’ houses when she’s not working at
her low-key new salon in Clapham, has
previously shorn the locks of actors Jeff
Goldblum, Kevin Spacey, Gemma
Arterton, Claire Danes and Daniel Craig,
Coldplay singer Chris Martin and former
S Club 7 star Rachel Stevens, among other
luminaries.
A little bird tells me she didn’t stop at
Justine, either. Ed Miliband’s barnet also
came in for the chop – and I hear that his
aides were left chuckling for days after-
wards by his celebrity hairdresser’s no-
nonsense approach to deciding the
correct style for the new Labour leader’s
locks.
“I’ll do the hair, you stick to the poli-
cies,” Cave told him, sternly.
Hairdresser-to-the-stars Charlotte Cave was responsible for Ed ‘n’ Justine’s new look Pictures: REUTERS
EXPLOSIVE STUFF
Another day in the deliciously irreverent
life of Boris Johnson, Mayor of London.
Boris was busy yesterday outlining the
future of the Olympic Park after the
London 2012 Games – renaming it the
“Queen Elizabeth Olympic Park”, creating
11,000 new homes, you know the drill.
The worthy cause didn’t stop him from
making a few of the usual quasi-deliberate
faux-pas, though. First came a description
of the ArcelorMittal “Orbit” tower, the
centrepiece of the new Park, as an “incred-
ible mutant trombone”, and then, when
discussing architecture through the ages,
a rather less than savoury examination of
London’s 1950s/1960s tower blocks.
NOW SHOWING IN CINEMAS
CITYA.M. 8 OCTOBER 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Our celebrity
hairdresser
didn’t stop at
Justine,
either – Ed
Miliband’s
barnet also
came in for
working in fields and schools and will be
the chop” immersed in traditional ways of life,
including living with people in the vil-
lage. Grassie himself (above) will be stay-
ing with the chief of the village, a man
renowned in the area for his influential
work in preventing infanticide in the
region among children affected by
birth defects or any other kind of dis-
“A lot of them are in need of blowing ability.
up,” Boris boomed, deadpan. A noble cause, though it’ll be no five-
star luxury break – Grassie will live in a
mud hut with a thatched roof and no run-
AFRICAN ADVENTURE ning water. Still, it’s the only one in the
Those who know Colin Grassie, Deutsche village with a long-drop toilet, so he’ll be
Bank’s UK chief executive, will be aware of counting his lucky stars.
his penchant for competing in gruelling
Iron Man challenges across the world, but
our man is off on an even more unusual FACING THE MUSIC
adventure this morning, I hear. Harsh words for Terra Firma, the private
Grassie is flying out to northern Ghana equity owner of troubled music group
with around 45 of the bank’s employees to EMI, courtesy of singer Lily Allen.
spend the better part of a week living and Mouthing off in this month’s GQ maga-
working in a remote village on behalf of zine, Allen rants: “I hate Terra Firma.
Afrikids, one of Deutsche’s two charities They’re w**kers...They don’t know how
of the year. to run a creative business. They are
While there, the lot of them will be killing us, frankly.”
CITYA.M. 8 OCTOBER 2010 News 11

Cairn shareholders approve

purchase of Vedanta stake
formed through spinning off its port the planned sale – a result pre-

▲
RESOURCES
BY HARRY BANKS
VEDANTA Resources cleared some hur-
dles to its $10bn (£6.3bn) plan to take a
sizeable stake in Cairn India yesterday
but concerns of potential delays to the
deal weighed on Cairn Energy shares.
Cairn Energy agreed in August to
sell London-listed miner Vedanta
Resources a stake of between 40 and 51
per cent of Cairn India, the company it
Rajasthan assets in 2007, for up to
$8.5bn.
However, rumblings from govern-
ment and Cairn India’s partner in its
big Rajasthan fields, Indian state-run
Oil and Natural Gas (ONGC), have
prompted fears among Cairn Energy
investors that the deal which has been
welcomed by analysts, may not close.
Cairn said yesterday that over 99 per
cent of shareholders had voted to sup-
dicted by analysts.
Cairn plans to return some cash to
investors and invest the rest in explo-
ration.
India’s number two oil official, S
Sundareshan, downplayed the
chances of Indian rival ONGC seeking
to pre-empt the sale, saying the high
cost would be a problem. “I don’t
think the ONGC board has seriously
considered a counter offer,” he said.

Michael Page boss Steve Ingham saw permanent jobs grow during the third quarter

Michael Page
grows on US
and Asia fees
▲

RECRUITMENT company’s business.

BY EMMA SADOWSKI
MICHAEL PAGE said that its profits
improved by more than a third yes-
terday, mainly bolstered by stronger
job markets in Asia and the
Americas.
The white-collar recruitment giant
saw third quarter gross profits – also
known as fee income – climb by 37
per cent to £112.7m compared with
the same period in 2009. This is also a
0.9 per cent improvement on the sec-
ond quarter.
Michael Page said the increase was
mainly linked to the recovery in
demand for permanent employees –
which brought in £87.8m in fees for
the period worldwide – but that tem-
porary employee demand was also
starting to show signs of growth.
The London-based group splits its
business between permanent and
temporary recruitment and said for
the first time this year, temporary
employees were in demand, pushing
year-on-year fee income up 5.5 per
cent to £24.9m.
Asia Pacific continued to drive
Michael Page’s overall fees up despite
comprising just 18 per cent of the
Gross profit for the region came to
£20.3m, marking an 88 per cent rise
on last year and a 12.5 per cent rise
on the last quarter.
Similarly, Michael Page reported
strong growth in the Americas, pre-
dominantly driven by the company’s
Latin American arm, which posted a
73.7 per cent spike in fees to £14.8m.
Chief executive Steve Ingham said
the UK, Continental Europe and
North America – which had been dif-
ficult regions for Michael Page’s busi-
ness – continued to perform well.
UK fees were up 20.9 per cent to
£33m, while Europe, the Middle East
and Africa (EMEA) rose by a quarter
to £44.6m.
ANALYSIS l Michael Page463.40
480 p 7 Oct
440
400
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

Australia pushes Hays’ fees up

as the UK continues to struggle
Australia and New Zealand, Hays’
▲

RECRUITMENT
HAYS said buoyant economies in
Australia and Asia boosted first quar-
ter results, offsetting a limp UK mar-
ket which was dragged down by
public sector job cuts.
The UK-based recruitment business
said in a first quarter trading update yes-
terday that overall fee income during
the period rose reported a 21 per cent,
and 18 per cent on a like-for-like basis.
largest market outside of Britain, rose
54 per cent, supported by a recovery
in the mining sector, which is driving
demand for both permanent and
temporary jobs, Hays said.
Back in Britain, Hays said it is
already feeling the squeeze from the
coalition government’s drive to slash
public sector spending and jobs,
which account for 10 per cent of
Hays’ overall sales.
 NEW & LINGWOOD

AQUASCUTUM

LINEA

PAUL SMITH
HUGO BOSS
CITYA.M. 8 OCTOBER 2010 News 13

Vatican Bank turns to courts

to have €23m in assets freed
the request. On 21 September, Rome magis-
▲

BANKING
BY HARRY BANKS
THE Vatican Bank has asked an
Italian court to free €23m (£20.1m) of
funds frozen in Italian banks when
magistrates opened an investigation
into suspicion of money laundering.
Vincenzo Scordamaglia, the lawyer
representing the Vatican Bank, said a
panel of three judges will hold a hear-
ing within two weeks to decide on
Scordamaglia re-stated the
Vatican’s position that its bank, for-
mally known as the Institute for
Works of Religion (IOR), had done
nothing wrong because it was merely
trying to transfer its own funds from
one bank to another.
“The entire thing could have been
cleared up if [the magistrates] just
picked up the phone and made a
call,” Scordamaglia said.
trates put the Institute for Works of
Religion’s president Ettore Gotti
Tedeschi and director general Paolo
Cipriani, under investigation and
froze €23m of its funds in two Italian
banks after two recent transfers were
deemed suspicious by financial police
and blocked. One was a transfer of
€20m to a German branch of a US
bank, and the other of €3m between
two Italian banks. Vatican Bank president Ettore Gotti Tedeschi said the body has done nothing improper

West LB’s bad

bank records
€1bn in losses
▲

BANKING lender of heavy burdens and allows

BY HARRY BANKS
GERMANY’S first bad bank, WestLB’s
EAA, posted risk provisions of €1.44bn
(£1.2bn) for its 2010 fiscal year and
expects more to come as its markets
show little signs of recovery.
EAA (Erste Abwicklungsanstalt)
posted a net loss of €1.05bn in its
shortened fiscal year from December
2009 to June 2010, co-head Matthias
Wargers said yesterday.
EAA expects to book provisions for
possible credit losses of roughly
€400m in its fiscal year 2011, which
started in July, he added.
Wholesale lender WestLB, which
last week put itself up for sale, shifted
assets worth €77bn into EAA, which
will wind down the holdings.
The move still needs approval from
the European Union, which might
have concerns the bad bank would
stifle competition, and sources famil-
iar with the situation have said
Brussels could ask for hefty conces-
sions.
WestLB’s bad bank is seen as a cor-
nerstone in the mooted merger with
peer BayernLB, as it relieves the
the remaining core bank to focus on
financial services for midsize German
companies.
Landesbanks such as WestLB and
BayernLB provide wholesale banking
services to their local public savings
banks. They lost billions of euros on
risky investments in the financial cri-
sis, forcing some to turn to the state
for bailouts.
By selling off some assets, EAA has
shrunk the portfolio by 12 per cent to
€68bn from December to August, but
Wargers said he expected slower
progress in future. The most toxic of
EAA’s assets are held in a special-pur-
pose vehicle called Phoenix with a
book value of €23bn.
It mainly consists of structured
financial products related to sub-
prime US mortgages.
EAA does not expect the assets to
regain value quickly, but Wargers said
he was under no time pressure to sell
and would rather seek to maximise
returns.
WestLB’s owners -- the regional
state of North Rhine-Westphalia and
savings banks -- have granted Phoenix
guarantees worth €5bn.

Bristol City boss raises £58m on Spain. As many wineries as landscapes.

In Spain there are almost as many wineries as there are landscapes.

Hargreaves Lansdown share sale The diversity of viticulture in the country is reflected in more
than 90 grape varieties from 70 denominations of origin.
Our wines mirror our country’s infinite beauty. Soil and climatic
conditions ensure variety, personality and richness of style to
“The recent share strength backed please all discerning palates.
▲

FINANCIAL SERVICES
STEPHEN Lansdown, co-founder of
financial advisory firm Hargreaves
Lansdown, raised £58m yesterday by
selling a 2.86 per cent stake in the
company.
Lansdown, who sits on the
Hargreaves Lansdown board as a non-
executive director and founded the
firm almost 30 years ago, sold 13.5m
shares at 429p, reducing his personal
stake to 20.1 per cent, the company
said.
Lansdown, who is chairman of
Bristol City FC, said the sale was aimed
at raising cash for other unspecified
investment opportunities.
by strong institutional demand pre-
sented an opportunity to trim my
holding and free up cash for other
ventures. The sale reduces my hold-
ing to approximately 20 per cent of
the company, not an insignificant
amount, and I remain a long term
investor in Hargreaves Lansdown,” he
said.
In April last year, Lansdown sold
23m shares for £47m, in part to help
finance the building of a new stadi-
um for Bristol City.
Hargreaves Lansdown, having ini-
tially fallen as much as eight per cent,
pared their losses to close four per
cent lower at 452p.
 14 Consumer News
Castel denies
bid talks with
SABMiller
▲
CONSUMER
BY HARRY BANKS
A SENIOR executive at French drinks
group Castel yesterday denied reports
that it was in talks to sell its African
beer operations to global brewer
SABMiller.
A Deutsche Bank report on
Wednesday said Castel was a natural
target for SABMiller’s mergers and
acquisitions ambitions, and a more
compelling option than acquiring the
Foster’s Group beer business in
Australia.
The report said Castel’s beer busi-
ness could transform Africa into a
truly significant growth driver for
SABMiller if the French group’s con-
trolling family were ever to put it up
for sale. Shares in SABMiller, which
brews Peroni, Miller Lite and Grolsch
beers, rose slightly yesterday.
Castel was founded in 1949 by nine
brothers and sisters and is still run by
its founding president Pierre Castel,
84, and despite his reduced involve-
ment there has been no indication
that the controlling family might sell.
Analysts said a Castel link-up would
make strategic sense with SABMiller
strong in southern and eastern Africa
such as Tanzania, Zimbabwe and
Mozambique, and Castel in western
Africa nations like Angola, Cameroon
and Ivory Coast.
“An acquisition of Castel would be
an excellent strategic move for
SABMiller, given the high margins
and strong per capita beer consump-
tion growth in Africa,” said analyst
Simon Hales at broker Evolution
Securities.
ANALYSIS l SABMiller
2,001.00
2,050 p
7 Oct
1,950
1,850
12 Jul 30 Jul 19 Aug 9 Sep
MULBERRY BAGS FASHIONISTAS
Ted Baker revenue rise is
fuelled by womenswear
RETAIL
▲
BY JOHN DUNNE
FASHION chain Ted Baker yesterday
reported a 25 per cent leap in half-
year profits but issued a cautious out-
look for the full-year due to the
“uncertain economic environment”.
For the 28 weeks to 28 August, pre-
tax profits rose to £7.5m while group
revenues came in at £88.1m, up from
£76.6m the year before. Womenswear
29 Sep sales increased by 17.3 per cent to
Future City after-work debates
every night this week
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s )S,ONDONGROWINGTOOBIGTOOFAST
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CITYA.M. 8 OCTOBER 2010
Asahi sales lift
SALES at fashion
retailer Mulberry boosts Shepherd
have soared by 79
per cent in the
past 10 weeks, as
its bags have
Neame’s profits
flown off the
shelves. Classic
handbag styles CONSUMER
▲
sported by
celebrities includ- DEMAND for trendy Asahi lager has
ing TV presenter helped to drive profit up by a quarter
Alexa Chung – at Shepherd Neame.
have helped fuel The company makes and sells Asahi
the rise Superdry under licence for the
Japanese brewer and it has been sell-
ing well in cities, particularly London.
Picture: REUTERS Asahi volumes were up five per
cent overall with draught sales rising
more than a third.
Overall pre-tax profits at Neame
rose 25 per cent to £8.7m in the year
to 26 June with revenues reaching a
record £115.4m.
Chief executive Jonathan Neame
said: “We have seen drinkers in
London loving Asahi.
“In the economic downturn people
may be not going out as much but
when they do they are willing to
spend a little extra.
£43.3m, representing 49.1 per cent of “London is amazingly resilient in
total sales, while menswear rose 12.8 the downturn.”
per cent to £44.8m. Sales in the UK The company, which has brewed in
and Europe jumped 14.4 per cent to Kent since 1698, is also seeing its tra-
£62.2m and US sales were up 20 per ditional ales performing well – par-
cent to £6m. ticularly Spitfire.
Ted Baker said it had made a good Neame said: “The lower priced
start to the second half of the year but lagers seemed to have lost out but
cautioned that its annual results real ales are doing very well.” The
were dependent on Christmas trad- company also brewed a World Cup
ing. The designer brand plans to open beer, 4-4-2, which did “pretty well”
new stores in Paris, Hong Kong, although England’s early exit meant
Chicago and New York. fewer drinkers went to pubs.


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"OOKNOWWWWBLUKSTORYOmONDON
WWWLONDONGOVUKSTORY
CITYA.M. 8 OCTOBER 2010
M&S profits
up but warns
over future
RETAIL
▲
BY JOHN DUNNE
MARKS & SPENCER said yesterday that
its sales were rising but that “it is far
from clear” what impact forthcoming
government cuts would have on its
customers.
Like-for-like sales in the UK, which
strip out the impact of sales from new
stores, rose by 5.3 per cent in the
three months to the beginning of
October.
The company also said it had
increased its market share across all
parts of the business. But chief execu-
tive Marc Bolland urged caution, say-
ing that while its older customers
were braced for government cuts its
younger ones were less so.
He said: “Marks and Spencer has
had a good second quarter, growing
market share across all parts of the
business. Customers are returning to
quality. However the impact of the
cuts is not known and we must
remain cautious.”
Bolland echoed the views of other
supermarket chiefs including Tesco’s
Sir Terry Leahy saying a double-dip
recession was unlikely. Meanwhile,
total sales across the group rose by 6.5
per cent, with international sales up
6.2 per cent.
International sales were up 6.2 per
cent, driven by Asia, with sales from
Halfords pins hopes on promotions
as sales are dented in tough market
RETAIL
▲
BY HARRY BANKS
HALFORDS yesterday promised to
launch new promotions after
reporting a sharper drop in like-for-
like sales over the past quarter.
The group said fewer sat nav sales
and a disappointing performance in
cycles contributed to a 6.3 per cent
fall like-for-like sales at its shops in
the quarter to 1 October.
Saturated sat nav market hits sales
EVERY driver seems to own a sat
nav these days. Sitting in night-
time traffic is like being at a festi-
val with everyone holding their
lighters in the air, each car emit-
ting an unearthly glow from the
dashboard. Their popularity
accounts for the scorching growth
rate of sat nav makers in recent
years, but their ubiquity explains
why the market is becoming satu-
rated: selling prices and volumes
are falling. With makers like Tom
Tom operating on wafer-thin mar-
gins, retailers like Halfords are feel-
ing the pinch.
Indeed, Halfords saw sat nav
sales decline by 16 per cent in its

 

Greece and Ireland less impressive as
their economic woes hit the high
street.
The lines holding up the best have
been at the top end with men’s suits
performing well. Bolland added:
“Customers are returning to quality
in the face of economic uncertainty,
especially we see that in areas such as
men’s suits and knitwear. People may
buy once, but they buy well.”
M&S, which serves 21m Britons a
week from over 650 stores and has
about 300 shops abroad, said its full-
year financial expectations were
unchanged as the better trading was
offset by rising operating costs.
TV adverts featuring models
including Lisa Snowdon in a military-
style coat, have helped to boost sales.
It will report its half year results for
the 26 weeks ending 2 October 2010
on 9 November 2010.
ANALYSIS l Marks and Spencer
420 p 410.00
7 Oct
380
340
12 Jul 30 Jul 19 Aug 9 Sep
There was a 4.5 per cent drop in
the previous three months,
although Halfords said it still
expected to grow half-year profits by
around 12 per cent to between
£67m and £69m.
It said it remained cautious in the
the trading environment and said it
would reinvest recent margin gains
into increasing its promotional
stance. The firm added that one
area of focus is likely to be in cycles
first half, partly accounting for
lacklustre trading across the busi-
ness, with overall like-for-likes off
2.1 per cent.
There is no such explanation for
the poor sales of bikes, which fell
by five per cent in the second quar-
ter. Halfords’ promise to “realign
the range and pricing of cycles”
suggests it simply didn’t have what
consumers wanted, something
that needs to be rectified. Because
there is massive scope for bike
sales in years to come. Politicians
like Boris Johnson are trying to
turn us into a nation of cyclers,
but there is still some way to go.
According to Eurobarometer, just
Consumer News 15
Rank sees
a lift from
gamblers
▲
LEISURE
BY JOHN DUNNE
New M&S chief BRITISH gaming firm Rank Group
executive Marc forecast its full-year performance
Bolland is urging would be around the top of analysts’
caution. estimates after all its businesses
Picture: GETTY improved during the third quarter.
Analysts are expecting full-year
pre-tax profit to range from £48m to
£53m compared with £49m for 2009,
ANALYST VIEWS: ARE THE GOOD TIMES BACK Rank, owner of the Mecca bingo
hall and Grosvenor casino chains,
FOR M&S? Interviews by John Dunne said like-for-like revenue for the
third-quarter, which ended on 2
October rose seven per cent, driven
FREDDIE GEORGE | SEYMOUR PIERCE by strong performances from
“
Grosvenor and Rank Interactive,
while total revenue for the period
We are reiterating our ‘buy’ recommendation on the stock. First, the was up eight per cent.
trading update does indeed indicate that general merchandise now has real For the year to date, like-for-like
”
momentum … while M&S’s food sales have been recovering, benefiting from the revenue was up four per cent and
introduction of a branded range. total revenue seven per cent higher.
“Whilst the consumer environ-
ment is likely to remain challenging
RICHARD HUNTER | HARGREAVES LANSDOWN for some time to come, the group is
“
in a strong financial position and has
made considerable progress in
Management have again been careful to play down expectations in the improving the standard of its prod-
hope of outperforming in the medium term. For the moment, though, the general ucts and services,” it said in a trading
”
market view of the shares as a ‘hold’ is unlikely to come under much pressure in statement.
either direction. Rank, which plans to roll out 10
more casinos over northern and cen-
tral England over the next few years,
SAM HART | CHARLES STANLEY said like-for-like revenues at
“
Grosvenor and its interactive unit
rose nine per cent on higher cus-
We believe M&S can continue to make steady progress. Improving tomer visits and spend. Rank
sales trends in both General Merchandise and Food are encouraging and must Interactive’s like-for-like revenues
”
largely be attributed to internal actions. Food gross margin has come under pres- jumped 26 per cent. Mecca Bingo
sure but we would expect margin to stabilise around current levels. achieved like-for-like growth in rev-
29 Sep enue as spending per head improved.
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The company said it had failed to
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Analysis by David Crow
 16 Economic News
UK output expands in August Central banks will be net
▲
UK EOCNOMY
BY MATTHEW WEST
BRITISH manufacturing output
surged in August continuing a four-
month upward trend and breaking a
16-year record, official data showed
yesterday, easing fears the economy is
on the verge of a sharp downturn.
The Office of National Statistics
(ONS) said output increased 0.3 per
cent in August taking the annual
growth rate to six per cent, the
strongest annual rate since the end of
1994.
Ten out of the 13 manufacturing
sectors reported growth. Industrial
House prices
plunge by £6k
in one month
▲
PROPERTY
BY MATTHEW WEST
HOUSE prices fell 3.6 per cent month-
on-month in September, their largest
fall since records began in 1983 wip-
ing £6,000 off the value of a typical
property around the country in a sin-
gle month.
Halifax, now part of Lloyds Banking
Group and the country’s largest mot-
gage lender, said yesterday in its close-
ly watched index that the value of the
average property fell to £162,096 from
£168,124 in August.
Halifax’s chief economist Martin
Ellis, said it was “too early” to say that
September’s decline in house prices
was the beginning of a renewed col-
lapse in overall market arguing low
transaction levels were contributing
to increased volatility in the monthly
house price measure.
Ellis stressed that while
September’s 3.6 per cent fall – the
biggest reported in 27 years – was a
record on the basis of monthly com-
parisons, on a quarterly basis the fall
in house prices was 0.9 per cent com-
pared with the second quarter – a sig-
nificant slowdown on previous
quarter-on-quarter falls of between
five and six per cent.
New claims for US jobless benefits hit ECB warns of disruptive
a three-month low as economy picks up forex moves as rates held
▲
WORLD ECONOMY
BY HARRY BANKS
NEW US claims for jobless benefits
hit a near three-month low last week,
suggesting some let up in the labour
market’s distress but likely not
enough to keep the Federal Reserve
from easing monetary policy further.
Initial claims for state unemploy-
ment benefits dropped 11,000 to
445,000, the lowest since 10 July, the
Labour Department said yesterday.
Financial markets had expected
production, which includes mining
and utilities, rose 0.3 per cent in
August, taking the annual growth
rate to 4.2 per cent – a rate of increase
also not seen since 1994.
The largest increases in output
were in the machinery and equip-
ment industries, where output rose by
16 per cent year-on-year and the food,
drink and tobacco industries which
saw a year-on-year increase in output
of 7.7 per cent. The ONS data showed
only electricity, gas and water output
as declining slightly by 0.2 per cent.
But economists were cautious
about the significance of the figures
for interpreting the strength of the
Ellis said: “A shortage of properties
for sale contributed to an imbalance
between supply and demand and was
a key factor driving up house prices
last year. An increase in the number
of properties available for sale in
recent months has reduced the
imbalance. At the same time,
renewed uncertainty about the econ-
omy and jobs has caused consumer
confidence to falter recently, dampen-
ing the demand for home purchase.”
Alan Clark, chief economist at BNP
Paribas, painted a more pessimistic
picture warning it was almost
inevitable that house prices would
fall into negative territory again.
He said: “To give you the glass half
full version we are a small island
nation and we do not have enough
homes in the right areas. But we are
also going to see massive spending cuts
in the next few weeks, people losing
their jobs or worried about doing so
and that is going to restrict spending.”
He added it was “entirely possible”
house prices would remain static for
up to a decade.
On Wednesday the IMF warned
that UK house prices were too high
and vulnerable to a fall.
claims to edge up to 455,000.
Sales at US retail chains last month
also showed unexpected strength. US
same-store sales rose 2.8 per cent,
according to Thomson Reuters data
which tracks 28 top chains, beating
analysts’ estimates for a 2.1 per cent
increase.
Sales, which rose for the 13th
straight month, were boosted by back-
to-school buying.
The US central bank’s policy-set-
ting committee meets on 2-3
November. The Fed, which cut
economy.
“These are good readings to be hon-
est, but still it’s going to take a long
time for output more generally in the
UK to get back to its peak level,” said
George Buckley, economist at
Deutsche Bank.
Peter Dixon, economist at
Commerzbank added: “The figures
are slightly ahead of the consensus
view now because they are somewhat
backward looking.”
“How strong output activity will
look in the future will depend on
how well the global economy recov-
ers. There’s a lot of concern it is losing
momentum,” added Dixon.
CITY VIEWS: WAS THE BANK OF ENGLAND RIGHT TO
KEEP INTEREST RATES ON HOLD? Interviews by Emma Sadowski
ALEX WINSTANLEY | AVIVA
“I am happy the Bank is keeping interest
rates at the current level. We’re in a chal-
lenging period at the moment. I am con-
fident with what the government is doing
but we need to take stock and
possibly look at what Europe is
doing.”
LAWRENCE CHIR | BLACKROCK
“At the moment I think the Bank is doing
the right thing. There is sufficient reason
to keep rates low and it would be far
too risky to raise them. But I do
think the rates will have to go
up sometime soon.”
ALEJANDRO WORTHINGTON | KENNEDYS
“It’s good for home owners, but bad for
people with savings. The fact that the
Bank doesn’t feel it can raise interest rates
is a cause for concern.”
overnight interest rates to near zero
in December 2008, has already
pumped $1.7 trillion (£1.1 trillion)
into the economy by buying mort-
gage-related and government bonds.
The prospect of further bond pur-
chases pushed the dollar down to a
15-year low against the Japanese yen
and an all-time low against the Swiss
franc yesterday.
Financial markets will likely take a
further cue from a government
report on September employment
later today.
buyers of gold next year
▲
COMMODITIES
CENTRAL banks are expected to be net
buyers of gold in 2011 for the first time
in nearly two decades, the World Gold
Council (WGC) said yesterday.
“For next year, we will probably see
a scenario where central banks are net
buyers [of gold] for the first time in
something like 17 years,” Marcus
Grubb, the WGC’s managing director
for investment, told delegates at the
World Gold Investment Congress in
London. He said central banks had
▲
WORLD ECONOMY
SUDDEN swings in foreign
exchange rates pose a threat to eco-
nomic growth, European Central
Bank President Jean-Claude Trichet
said yesterday after the ECB kept
rates on hold at one per cent.
In his strongest comments on
currency volatility in almost a year,
Trichet said exchange rates should
reflect economic fundamentals, a
pointed reference to countries
intervening to keep their curren-
CITYA.M. 8 OCTOBER 2010
been net buyers of 7.7 tonnes of gold in
the second quarter of 2010. Before
2009, they were net sellers of an aver-
age of 400 tonnes per year.
Gold prices hit a record high above
$1,360 an ounce yesterday, driven by
weakness in the dollar, which
stemmed from growing expectations
for the Federal Reserve to keep US
interest rates low to support economic
growth. The prices have risen by more
than 20 per cent so far this year, sup-
ported by central bank moves to
become aggregate buyers of gold.
MPC votes
to hold rates
at 0.5pc low
▲
UK ECONOMY
THE Bank of England’s Monetary
Policy Committee (MPC) voted to
maintain interest rates at their his-
toric low of 0.5 per cent for a further
month yesterday, marking the
longest period since the Second
World War that the bank rate has
remained unchanged.
The MPC also voted to keep its poli-
cy of quantitative easing (QE) at
£200bn despite a call from the
Institute of Directors on Wednesday
for it to restart QE to the tune of an
extra £50bn.
The MPC’s decision comes as mem-
bers are beginning to openly disagree
about the future direction of mone-
tary policy with a three way split an
increasing possibility when the min-
utes of the meeting are published on
20 October.
Two members in particular, Adam
Posen and Andrew Sentance, are like-
ly to have taken opposing views in the
two-day discussions that precede the
MPC’s announcement.
Posen has previously called for QE
to be expanded and recently voiced
concerns that the UK faced a “lost
decade” like rival Japan during the
1990s unless more is done to aid the
economic recovery.
In contrast, Andrew Sentance has
voted to increase the bank rate at the
last four meetings of the MPC due to
inflation fears and is unlikely to have
changed his view in the last month.
cies low. The central bank head also
predicted economic recovery in the
Eurozone would continue in the
second half of the year and said
lower bank demand for ECB liquid-
ity suggested money markets were
beginning to function more nor-
mally.
That trend has pushed money
market interest rates higher and
put the ECB on a different path to
other major central banks. Analysts
expect the rift to put pressure on
the euro to appreciate.
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 18 News
Carillion’s order book bulging
▲
SUPPORT SERVICES
BY HARRY BANKS
SUPPORT services firm Carillion said
it has its largest ever pipeline of con-
tract opportunities as UK local
authorities look at outsourcing and it
is on track to meet market expecta-
tions.
The company said yesterday it was
well positioned to take advantage of
public service customers increasingly
looking to outsource work to help
them reduce costs and it expected to
achieve its targeted operating margin
of around five per cent in its support
service unit.
Bonuses for
hedge fund
IT staff jump
▲
HEDGE FUNDS
BY STEVE DINNEEN
HEDGE fund IT staff have seen their
bonuses double in the last year,
according to new research.
ReThink Recruitment says software
developers with experience in algo-
rithmic trading platforms – a form of
automated high volume trading – can
now expect 50 per cent bonuses, up
from around 25 per cent last year.
High-flying IT staff have also seen
their base salary rise to around
£120,000, a 15 per cent hike year-on-
year. Contractors can now earn £750 a
day, compared to £600 a day at the
start of the year.
Fhamid Malik, head of financial
services at ReThink said: “Renewed
investor confidence has prompted a
surge in business volumes. Funds are
now locked in an arms race for the
best systems to steal an edge on com-
petitors.
“This has fuelled demand for IT
staff, as funds look for the latest inno-
vative platforms to mitigate risk and
manage the market impact of trades.
“The last six months have also wit-
nessed the return of guaranteed
bonuses into contracts, which almost
completely disappeared during the
DEO to resume trading on the AIM
market following its first acquisition
▲
ENERGY
BY MARION DAKERS
BRITISH oil explorer DEO Petroleum
said last night it expects to start trad-
ing again on the Aim market this
morning after agreeing a deal to buy
a large stake in oil fields off the coast
of Perth.
DEO also announced a £16m share
placing to fund its first ever acquisi-
tion, buy new exploration licences
and provide further working capital.
Its shares have been suspended since
Revenues from activities in the
Middle East picked up in the third
quarter, said Carillion, adding that it
sees strong full-year margins from
the region and hopes its recently
established Qatar business will start
to win contracts in the next six
months.
The firm won a number of con-
tracts in the third quarter, including
a £124m residential project deal for
its Dubai joint venture and £200m
worth of contracts in the energy sec-
tor. Earnings growth for 2010 will be
in line with market expectations, said
Carillion, with the consensus for full-
year pre-tax profit at £181m accord-
credit crunch.”
Fhamid Malik adds: “For those IT
staff with the right skills this is an
ideal time to secure a lucrative con-
tract.
“These funds are locked in a perpet-
ual war to produce the fastest and
most accurate trading platforms.
Employers are now willing to pay a
premium of around 20 per cent for
senior IT staff that have successfully
developed and implemented bespoke
trading systems before.”
ReThink says demand for IT staff is
not limited to London, with several
leading funds having recently moved
part of their operations to Geneva
and Zurich.
Meanwhile, US Treasury secretary
Timothy Geithner wrote to French
economy minister Christine Lagarde
earlier this week warning her against
curbing foreign hedge funds in
Europe as a row with Washington
over new EU controls escalated.
The correspondence increases pres-
sure on Paris to make concessions on
new controls for private equity and
hedge funds. Officials said France’s
position had antagonised
Washington, which is worried that
American hedge funds will be
blocked from Europe.
22 September under the Aim admis-
sion rules.
DEO’s purchase of a 42.08 per cent
stake in the North Sea assets from
the UK arm of Canadian oil giant
Nexen will cost around £10.5m. The
company must get shareholders’
approval for the deal before it goes
ahead.
DEO chief executive David
Marshall said: “This is an exciting
time for DEO as we make our first
acquisition. We have a proven and
experienced management team who
ing to a Thomson Reuters poll of nine
analysts.
Shares in Carillion closed at 327.3p,
valuing the company at £1.28bn.
ANALYSIS l Carillion
p
327.00
7 Oct
325
315
305
295
12 Jul 30 Jul 19 Aug 9 Sep
SELLAFIELD NUCLEAR SITE CUTS 1,500 JOBS
MORE than 1,500 jobs are to be axed at the Sellafield nuclear site in Cumbria triggering
union fears of a workplace bloodbath in the wake of public sector spending cuts. The
GMB union claimed that the job losses – a mixture of redundancies and vacancies that
will not be filled – were a direct result of the government’s austerity drive to reduce the
nation’s budget deficit.
have successfully developed and com-
mercialised North Sea assets in
recent times.
“By applying advanced subsea
technology and first class drilling
operations to stranded assets we aim
to become the leading independent
operator of high value subsea devel-
opments in the Central North Sea,”
he said.
This is the company’s first acquisi-
tion since it hired a new manage-
ment team and changed its name
from Microcap in December 2009.
Increased IPOs could
herald market comeback
▲
UK ECONOMY
AN increase in initial public offerings
(IPO) on the Alternative Investment
Market (AIM) in the last quarter may
signal the start of a market recovery,
research suggested yesterday, despite
the summer months being a tradi-
tionally quieter period for listings.
PricewaterhouseCoopers (PwC) said
listings on Aim increased from 10 in
the second quarter, worth a total of
£133m, to 12 in the last quarter with
29 Sep a value of £175m. Five of the listings
Picture: GETTY
HUGH SANDERSON
FIRST ENERGY
CAPITAL
FROM the finer points of corporate
finance through to the mucky business
of building oil pipelines, DEO has taken
no chances and drafted in advisers to
cover all corners of its first acquisition.
Broker and lead book runner First
Energy Capital has its roots in Canada,
having starting life as an energy-
focused adviser in one of the frontiers
of oil exploration. Managing director of
corporate finance Hugh Sanderson has
been with the company since 2000,
and moved to London to help launch
CITYA.M. 8 OCTOBER 2010
launched in September, while four
were launched in July and three in
August. This compared with a more
traditional decline in main market
listings over the summer where there
were 20 IPOs with a combined value
of £1,410m, compared with 27 listings
with a value of £2,529m in the second
quarter.
David Snell, a partner at PwC, said:
“The increase in offering value and
number of IPOs since the last quarter
is positive and could signal the begin-
ning of a recovery on Aim.”
KKR to join
Bankhaus
on BHF bid
▲
PRIVATE EQUITY
PRIVATE equity house KKR is under-
stood to be in talks with German
group Bankhaus Lampe about a joint
bid for BHF, a private bank owned by
Deutsche Bank.
KKR’s move could improve the buy-
out firm’s chances of winning over
BHF’s sceptical management, which
has so far expressed a clear preference
for strategic bidders, making it diffi-
cult for financial investors to gain a
foothold in an industry where hostile
deals are not customary.
“We are looking at BHF, but are in
the initial stages,” a spokeswoman for
Bankhaus Lampe said, without giving
further details. KKR declined to com-
ment.
Deutsche Bank has been on the
lookout for a buyer for BHF ever since
it inherited the Frankfurt-based bank
through its €1bn (£881m) purchase of
Sal Oppenheim in March.
Deutsche Bank narrowed down the
field of potential bidders for BHF as it
seeks to sell the bank as a whole.
In September Deutsche Bank
finance director Stefan Krause said
four bidders were in the due diligence
process, including banks and finan-
cial investors. BHF, a 150-year-old insti-
tution with roughly 1,500 employees,
a book value of around €650m, and
about €40bn in client assets under
management, would be too large for
Bielefeld-based Bankhaus Lampe to
swallow on its own.
First Energy’s office here. Before join-
ing, he was an assistant vice president
of research at Merrill Lynch, where he
covered oil and gas, energy utilities
and pipelines. He holds an MBA from
Dalhousie University, and a BA in eco-
nomics from McGill University. Derek
Smith is also advising on behalf of
First Energy.
Acting as nominated adviser and
placing agent is Merchant Securities,
an Aim-listed company with a focus
on institutional research and corporate
finance. Bidhi Bhoma, director of cor-
porate finance and qualified solicitor,
heads the team. He specialised in cor-
porate finance and M&A while at law
firm Denton Wilde Sapte, before join-
ing Merchant in 2004. Virginia Bull,
assistant director of corporate finance,
is also advising. She has a degree in
maths from Liverpool University.
CITYA.M. 8 OCTOBER 2010
Renault sells €3bn Volvo stake Toyota set to unveil two
future development of Volvo Group,
▲
AUTOMOTIVE
which we share, as Renault will
BY HARRY BANKS remain a major shareholder with 17.5
RENAULT is to cut debt after a €3bn per cent of voting rights”.
(£2.6bn) sale of shares in world num- He said proceeds would strengthen
ber two truckmaker Volvo, which Renault’s balance sheet ahead of a
sent the French carmaker’s shares to new strategic plan next year.
a nine-month high yesterday. French brokerage CM-CIC
Volvo said there would be little Securities said the move could allow
change in direction because Renault Renault to “seize the opportunity for
would remain the most influential a stakeholding partnership with
voting shareholder. Renault sold B- General Motors” ahead of the US car-
class shares, which have less voting maker’s IPO.
power. The sale of shares will sharply
Renault chief executive Carlos reduce Renault’s debt as it invests in
Ghosn said the share placing “con- electric cars and emerging markets.
firms investor confidence in the The stake sold represents 14.9 per
Samsung hit
by downturn
in TV sales
KOSPI.
▲
TECHNOLOGY
Samsung, which is worth three
BY STEVE DINNEEN
times more than top mobile handset
SAMSUNG yesterday ended a record maker Nokia and its key TV rival
run of quarterly performances as a Sony, has dropped one per cent this
negative earnings guidance caused year, underperforming KOSPI’s 13 per
the firm’s stock to lurch. cent rise.
The world’s largest memory chip- After a weak start, Samsung is chal-
maker, which has a tradition of beat- lenging Apple with its Galaxy S high-
ing even the most bullish estimates, end smartphone, powered by
faces a tough outlook as a fragile Google’s Android software. It has sold
world economy has hit demand for more than 5m units since its June
TVs and computers.
It now expects its latest quarterly
results to come in below market con-
sensus.
launch. Samsung is also launching its
Galaxy Tab tablet computer, seen by
analysts as the strongest rival to
Apple’s iPad so far.
The news will be disappointing for
Samsung investors, with the firm per-
forming strongly over chip rival
Micron and holding on to its top spot
In June Samsung reported record
quarterly profits thanks to an
increase in sales of smartphones and
memory chips.
slot in TV sales against Sony and The South Korea-based company
Panasonic. expects consolidated operating profit
Samsung, the first major global of between 4.6 trillion won and 5 tril-
technology firm to flag preliminary lion won (£2.6bn to £2.8bn) for the
September quarter results, might set three months ended 30 September.
the benchmark for technology That would be higher than the 4.22
investors with Intel and Advanced trillion won recorded in the third
Micro Devices reporting numbers quarter last year but less than the
next week. 5.01 trillion won racked up in the sec-
Shares in Samsung, Asia’s most ond quarter of 2010. Samsung esti-
valuable technology firm worth mated consolidated sales of between
$116bn, closed 2.9 per cent lower, lag- 39 trillion won and 41 trillion won for
ging a 0.2 per cent drop in Korea’s the third quarter.
CITY MOVES | WHO’S SWITCHING JOBS
Jefferies
The investment bank has hired Simon Hampton
from Bank of America Merrill Lynch as its new
European head of real estate, gaming and lodg-
ing investment banking.
Hampton spent over 13 years at BoA Merrill
Lynch, including eight as head of the real
estate, gaming and lodging investment banking
group for the EMEA region. Prior to that, he
was in the corporate finance group at NatWest
Markets.
Ernst & Young advisory partner Malcolm Bairstow to
The accountancy firm has named UK lead its global construction and infra-
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
cent of Volvo shares and 3.8 per cent
of voting rights. It left Renault with
6.8 per cent of Volvo’s share capital
and 17.5 per cent of voting rights. The
A shares have 10 times the vote of B
shares.
Renault said the proceeds from the
private placement to institutional
investors would help bring net debt
below €3bn from €4.6bn, in line with
targets. Renault had said its stake in
Volvo was “not strategic”, but Ghosn
said last week it was “a very good
asset” and Renault would remain for
“a very long time”.
Renault is now the second-biggest
owner of overall capital in Volvo.
BEST OF THE BROKERS
ANALYSIS l J Sainsbury
400 p 387.40
7 Oct
380
360
340
12 Jul 30 Jul 19 Aug 8 Sep 28 Sep
J SAINSBURY
Sales growth at J Sainsbury was still faster
than peers and, according to HSBC the sec-
ond quarter confirmed Sainsbury’s is grow-
ing faster than the industry but margin
enhancement looks fairly limited for the full
year. The broker believes valuation is cur-
rently stretched relative to the sector and
reiterates its “neutral” rating.
Demand for winter gas set to surge as
National Grid prepares for cold weather
▲
ENERGY
BRITAIN’S winter gas demand is
expected to rise by 3.8 per cent com-
pared with last winter as more gas is
forecast to be used for power genera-
tion, National Grid said yesterday.
In the power sector, peak demand
levels are expected to be slightly
lower than last year’s at 57.7
gigawatts (GW), while available power
Edited by Victoria Bates
structure practice.
Bairstow has over 30 years of expe-
rience in property, construction and
infrastructure and has been with EY
since 2000. He currently leads a num-
ber of advisory and assurance engage-
ments for government and private
sector clients in the UK and globally.
Otkritie
The Russian financial services group
has hired Sunil Joshi, Berthold Maier
and Vinay Ruparelia to its London team.
Joshi joins as a managing director
and head of London equities, while
new Prius models by 2012
▲
AUTOMOTIVE
TOYOTA plans to sell two new ver-
sions of its Prius hybrid in the US by
the end of 2012, unveiling both an
expanded and a more compact ver-
sion yesterday.
The expanded version will have 50
per cent more interior space than the
current model, while the compact
will be about the same size as
Japanese auto maker’s Yaris model,
according to reports from two
unidentified US automotive dealers
ANALYSIS l Imperial Tobacco
2,000 p 1,905.00
7 Oct
1,950
1,900
1,850
1,800
12 Jul 30 Jul 19 Aug 9 Sep
IMPERIAL TOBACCO
Morgan Stanley reiterates its “overweight”
rating and 2,270p price target on Imperial
Tobacco saying the market is underestimat-
ing the cigarette maker’s organic growth
prospects. Says its 22 per cent discount to
peers, based on the fact the shares are
trading at just 10.5 times 2010 earnings, is
“unjustified”.
To appear in Best of the Brokers email your research to notes@cityam.com
generation is expected to reach 66.3
GW, the grid operator said in its final
winter outlook report.
“Gas and electricity demand is
manageable and should be met even
in a very cold winter,” National Grid
said in a statement.
Gas demand for power generation
this winter will be 1bn cubic metres
(bcm) higher than the weather-cor-
rected estimate for last year at 17.6
Maier and Ruparelia become directors
of equity sales. All three join from
Renaissance Capital, where they held
positions as head of equity trading,
director of international equity sales
and vice president of international equi-
ty sales respectively.
Close Asset Management
Beverley Lavin has joined the asset
manager as head of financial planning,
reporting to head of UK wealth man-
agement Steven Mendel.
Lavin joins from Brewin Dolphin,
where she held the same role.
News 19
attending a Toyota conference in Las
Vegas.
Toyota recently pledged to release
six new hybrid models in the next
two years.
Meanwhile, Toyota’s president of
US operations Yoshi Inaba yesterday
called upon US dealers to boost annu-
al sales to two million vehicles by
2013.
The challenge, delivered at the Las
Vegas convention yesterday, would
amount to a 30 per cent increase in
annual sales from current levels.
ANALYSIS l Veolia
€
19.80
21 7 Oct
20
19
18
29 Sep 19 Jul 9 Aug 30 Aug 20 Sep
VEOLIA
Despite a 17 per cent de-rating over the
past six months, JP Morgan Cazenove
believes interest in Veolia remains low after
a disappointing set of first half results. The
broker does not see the third quarter as a
positive catalyst for the stock and retains
an “underweight” stance, with a slight
preference for Suez Environnement.
bcm. Even though no clear forecast
has been made as to which fuel will
be this winter’s baseload resource,
gas is expected to be the fuel of choice
over the first two winter months.
National Grid also reviewed its sea-
sonal weather assumptions following
last year’s cold winter. The grid oper-
ator also said that installed power
production capacity could rise to 83
GW by the end of the winter.
in association with
Moss Bros
The suit retailer has hired Maurice
Helfgott as a non-executive director,
effective from 19 October.
Helfgott was previously an executive
director and head of menswear at
Marks and Spencer, and is also the
founder of Amery Capital, an invest-
ment and advisory firm.
Hammonds
The law firm has hired Mark Norris,
previously head of the London banking
group at Simmons & Simmons, as its
new head of banking.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment
20 CITYA.M. 8 OCTOBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .291.70 –1.30 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .525.50 +4.50 574.50 382.00 JPMorgan Emerg Mkts . . . . . . . .594.00* +0.50 609.00 443.00 SABMiller . . . . . . . . . . . . . . . . .2001.00 +9.00 2090.00 1532.00
3i Infrastructure . . . . . . . . . . . . . 113.80 –0.20 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .553.50 –21.00 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .250.60 +1.50 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .282.50 +1.00 286.80 208.20
A.B. Foods . . . . . . . . . . . . . . . .1055.00 +1.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1521.00* +13.00 1529.00 692.00 Kazakhmys . . . . . . . . . . . . . . . .1400.00 –83.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .387.40 +0.30 397.00 307.60
Aberdeen Asset Man . . . . . . . . . .167.90 +0.90 169.30 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .528.00 –1.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .153.40* +0.40 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1462.00 +12.00 1468.00 1056.00
Admiral. . . . . . . . . . . . . . . . . . .1599.00* +9.00 1695.00 1003.00 Dana Petroleum . . . . . . . . . . . .1799.00 –1.00 1817.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .232.30* +2.90 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1173.00 +3.00 1191.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .125.50 –1.00 137.30 103.10 Davis Service . . . . . . . . . . . . . . . 411.60* –1.40 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .137.00* +0.50 164.60 114.60
Afren . . . . . . . . . . . . . . . . . . . . . 114.50 –1.90 117.70 76.50 Debenhams . . . . . . . . . . . . . . . . .67.80 +0.45 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .346.00* –1.60 372.30 157.30 Scot. & Sthrn Energy. . . . . . . . .1128.00 +8.00 1206.00 1006.00
African Barr Gold . . . . . . . . . . . .610.00 –28.00 685.00 520.50 Derwent London . . . . . . . . . . . .1605.00* +6.00 1633.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .569.50* –2.50 576.00 416.70 Scottish Mortgage. . . . . . . . . . . .650.00 –1.00 656.00 475.00
Aggreko . . . . . . . . . . . . . . . . . .1596.00* +7.00 1639.00 699.00 Dexion Absolute . . . . . . . . . . . . .139.50 +0.20 148.00 131.20 Land Securities . . . . . . . . . . . . . .687.00* +11.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .293.80* +2.80 389.90 244.00
Alliance Trust . . . . . . . . . . . . . . .339.60* +1.70 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . . 1108.00* +6.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .104.80 –1.10 106.60 69.05 Serco . . . . . . . . . . . . . . . . . . . . .616.00* –2.50 656.50 490.40
AMEC . . . . . . . . . . . . . . . . . . . . .990.50 –17.50 1024.00 728.00 Dimension Data . . . . . . . . . . . . . 119.90 +0.10 125.50 68.75 Lloyds Banking Gp . . . . . . . . . . . .73.90 –2.49 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1330.00 +10.00 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .403.80* +3.10 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .27.01 –0.06 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .130.70* +1.00 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .460.00 +6.60 460.30 348.00
Anglo American . . . . . . . . . . . .2664.50 –87.50 3015.50 2063.50 Domino’s Pizza . . . . . . . . . . . . . .467.80 –0.10 484.70 278.20 London Stk Exchange . . . . . . . . .684.00 +4.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1420.00* –5.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . .1249.00* –64.00 1344.00 755.50 Drax . . . . . . . . . . . . . . . . . . . . . .385.20* +0.20 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1750.00 –40.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .578.50 +1.50 700.50 525.50
Aquarius Platinum . . . . . . . . . . .369.00 +5.90 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .420.00 –7.60 438.40 305.00 Man . . . . . . . . . . . . . . . . . . . . . .249.80 +12.10 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .162.40 +3.60 163.20 103.00
ARM Holdings . . . . . . . . . . . . . . .387.90 –1.40 419.50 143.00 Easyjet . . . . . . . . . . . . . . . . . . . .432.00 –1.30 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .410.00 +19.20 413.60 321.90 Smiths . . . . . . . . . . . . . . . . . . .1245.00 –5.00 1261.00 883.50
Ashmore . . . . . . . . . . . . . . . . . . .352.20 +0.30 357.50 215.00 Edinburgh Inv Tst . . . . . . . . . . . .426.60 –1.30 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .305.60 –3.00 331.00 229.80 SOCO Intl . . . . . . . . . . . . . . . . . .441.50 –6.90 510.00 380.60
Astrazeneca . . . . . . . . . . . . . . .3279.00 +43.00 3389.50 2668.00 Electrocomponents . . . . . . . . . . .242.00 –1.50 251.00 144.80 Melrose . . . . . . . . . . . . . . . . . . .289.90 +4.60 291.40 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .738.50 –3.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . .125.00 –0.60 127.60 87.35 Mercantile IT . . . . . . . . . . . . . . . .974.50* +0.50 1002.00 822.50 Spectris . . . . . . . . . . . . . . . . . . 1110.00 +3.00 1125.00 653.00
Autonomy Corp . . . . . . . . . . . .1543.00 –8.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .494.00 –9.50 510.00 358.50 Michael Page Intl. . . . . . . . . . . . .463.40* –15.00 478.40 316.70 Spirax-Sarco Eng . . . . . . . . . . .1806.00 –26.00 1859.00 1060.00
Aveva . . . . . . . . . . . . . . . . . . . .1431.00 +1.00 1504.00 856.50 Eurasian Nat Res . . . . . . . . . . . .908.00* –18.00 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .375.00 +7.10 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .145.00 –1.00 146.30 86.50
Aviva . . . . . . . . . . . . . . . . . . . . .401.90* –0.20 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .599.00 –3.00 630.00 371.80 Millen & Copthorne . . . . . . . . . . .531.00* –1.00 547.00 321.40 Sports Direct Intl . . . . . . . . . . . . .144.40 –1.00 148.00 89.85
Babcock International . . . . . . . . .578.00 –2.50 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .680.50 –4.50 698.50 520.00 Misys . . . . . . . . . . . . . . . . . . . . .290.60 +1.60 298.00 196.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1159.00 — 1190.00 616.00
BAE Systems . . . . . . . . . . . . . . .350.10 –5.30 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .333.60 +0.90 396.20 140.70 Mitchells & Butlers . . . . . . . . . . .297.20 +1.50 343.90 228.30 St James’s Place . . . . . . . . . . . . .275.20 –6.80 298.00 203.40
Balfour Beatty . . . . . . . . . . . . . . .263.70* –6.00 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .373.90 –0.70 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .192.30 +0.40 257.00 187.60 Stagecoach. . . . . . . . . . . . . . . . .183.10 –1.70 204.90 137.00
Barclays . . . . . . . . . . . . . . . . . . .304.05 –2.75 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .290.70 –0.90 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .537.00 –0.50 543.00 304.70 Standard Chartered . . . . . . . . . .1852.50 –21.00 1946.00 1366.50
Barratt Development . . . . . . . . . . .94.80 –4.45 178.75 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1289.00 –26.00 1333.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .325.80 –1.20 329.20 265.00 Standard Life . . . . . . . . . . . . . . .231.10* –0.90 237.00 170.00
BBA Aviation . . . . . . . . . . . . . . .194.10* — 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .254.50* +2.10 285.70 224.10 Morrison Wm . . . . . . . . . . . . . . .299.60* –0.20 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . . 1175.00 –51.00 1312.00 499.00
Bellway. . . . . . . . . . . . . . . . . . . .586.00 –11.50 842.50 510.00 Genesis Emerging Mkts Fd . . . . .525.50 –1.50 527.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .913.00 –6.00 922.00 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .141.90 –1.70 153.80 106.60
Berkeley . . . . . . . . . . . . . . . . . . .838.00 –1.00 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .175.30 +3.30 176.40 100.40 National Express. . . . . . . . . . . . .240.00 –0.40 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .530.50 +16.50 531.00 341.40
BG . . . . . . . . . . . . . . . . . . . . . . 1154.50 –20.00 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1296.50* +23.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .567.50 +5.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2122.50 –15.00 2346.00 1618.50 Great Portland Estates . . . . . . . .363.00 –1.10 368.60 236.60 Next . . . . . . . . . . . . . . . . . . . . .2258.00 –4.00 2360.00 1733.00 Tate & Lyle . . . . . . . . . . . . . . . . .488.00 +1.80 509.00 388.00
BlackRock Mining . . . . . . . . . . . .660.00 +1.50 672.50 475.00 Greene King . . . . . . . . . . . . . . . .429.80 –2.10 484.00 372.50 Northumbrian Water . . . . . . . . . .336.60 –1.00 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .27.77 –0.92 46.34 24.29
BlueBay . . . . . . . . . . . . . . . . . . .355.00 +4.20 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .408.00 –39.00 562.50 357.20 Ocado Grp . . . . . . . . . . . . . . . . .131.00 –0.90 169.00 129.20 Telecity . . . . . . . . . . . . . . . . . . . .486.00 — 546.00 320.00
Bluecrest Allblue GBP . . . . . . . . .169.50 +0.30 170.00 147.30 Halma . . . . . . . . . . . . . . . . . . . . .327.50 –0.10 331.10 218.40 Old Mutual . . . . . . . . . . . . . . . . .142.20 –0.20 143.40 95.30 Templeton Emrg Mkts . . . . . . . . .637.00 –5.00 648.00 455.00
Booker . . . . . . . . . . . . . . . . . . . . .49.90 –0.65 51.60 37.50 Hammerson . . . . . . . . . . . . . . . .416.70 +4.70 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .285.80 –3.30 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .438.05 –2.60 454.90 368.40
BP . . . . . . . . . . . . . . . . . . . . . . .437.05 +1.50 658.20 296.00 Hargreaves Lansdown . . . . . . . .452.00 –18.90 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .991.50 –12.50 1069.00 768.50 Thomas Cook . . . . . . . . . . . . . . .179.60* –0.50 277.20 167.50
Brit Insurance . . . . . . . . . . . . . .1035.00 +2.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 115.20 –2.40 120.10 82.50 Pennon . . . . . . . . . . . . . . . . . . . .583.50* +3.00 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .873.00 –20.50 915.00 647.50
British Airways . . . . . . . . . . . . . .261.40 –4.70 268.50 172.40 Henderson . . . . . . . . . . . . . . . . .133.40 +0.30 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .376.50 –16.40 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .224.30 –0.10 313.90 189.20
British Amer. Tob . . . . . . . . . . .2368.00 –2.00 2439.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .322.00 –3.70 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1410.00* –13.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .400.00 +3.80 436.20 261.20
British Empire Tst . . . . . . . . . . . .480.00 –0.80 485.50 338.50 Hikma Pharma . . . . . . . . . . . . . .715.00* +8.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . .1071.00* –66.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1282.00* –15.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .495.90* +5.20 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .347.90 –5.30 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* — 775.00 550.50 UK Commercial Prop. . . . . . . . . . .78.75 –0.15 84.90 70.60
Britvic. . . . . . . . . . . . . . . . . . . . .458.00 –11.80 518.00 341.50 Hochschild Mining . . . . . . . . . . .490.20 +13.70 497.80 220.00 Premier Farnell . . . . . . . . . . . . . .282.00* +1.80 282.80 140.60 Ultra Electronics . . . . . . . . . . . .1740.00 –19.00 1774.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .242.40 –0.80 284.30 204.80 Home Retail . . . . . . . . . . . . . . . .214.90 +4.80 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1674.00 –1.00 1703.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .707.50 –2.00 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .463.20 –1.20 502.00 422.00 Provident Financial . . . . . . . . . . .821.50 +1.50 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1845.00 — 2024.00 1662.00
BT . . . . . . . . . . . . . . . . . . . . . . .151.80 +0.60 153.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .661.60* –2.10 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .643.00 — 665.00 475.70 United Utilities . . . . . . . . . . . . . .586.00 +2.50 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .759.00 –9.50 784.50 614.00 Hunting . . . . . . . . . . . . . . . . . . .645.50 –5.00 661.00 429.10 PZ Cussons . . . . . . . . . . . . . . . .379.90* +3.50 382.70 231.70 Utd Business Media . . . . . . . . . .619.00* –2.50 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1030.00 +25.00 1065.00 500.00 ICAP . . . . . . . . . . . . . . . . . . . . . .456.60 +7.10 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .108.10 –0.40 179.10 103.50 Vedanta Resources . . . . . . . . . .2193.00 –30.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .57.50 +0.60 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .533.00* +2.50 537.00 291.00 Randgold Resources. . . . . . . . .6375.00 –210.00 6755.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1286.00 –37.00 1347.00 726.50
Cable & Wire Wwide . . . . . . . . . . .76.25 +0.65 94.80 60.05 Imagination Tech Gp . . . . . . . . . .402.60 +13.40 404.00 163.70 Reckitt Benckiser . . . . . . . . . . .3501.00 +37.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .161.60 –0.30 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .433.50 –18.80 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .778.50* –14.00 803.50 410.00 Reed Elsevier . . . . . . . . . . . . . . .544.50 –9.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1522.00* +3.00 1527.50 639.00
Caledonia Invs . . . . . . . . . . . . .1662.00 +1.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1905.00 –5.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .84.35* –0.35 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .768.00* +7.00 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .792.00* — 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .327.20 –1.00 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1086.00* –7.00 1098.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1656.00 –15.00 1680.00 1182.00
Capital & Counties . . . . . . . . . . .136.30* — 139.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .420.90 –7.60 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.70 — 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .172.50 +1.80 217.80 160.50
Capital Shopping Centres . . . . . .390.40* +1.20 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .636.50* –7.50 831.00 528.50 Resolution . . . . . . . . . . . . . . . . .249.30* +2.80 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .475.50 –1.00 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .327.00* –0.30 361.90 272.00 Intercontl Hotels . . . . . . . . . . . . 1155.00 –17.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .315.80 +0.40 348.80 267.70
Carnival . . . . . . . . . . . . . . . . . .2576.00 –7.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .312.90 +4.40 315.00 233.50 Rightmove . . . . . . . . . . . . . . . . .759.00 +1.50 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1595.00 –58.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .325.00 –16.50 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1832.00 –10.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3865.00 –61.00 4104.00 2631.00 Wood Group (John). . . . . . . . . . .430.10 –2.50 443.50 279.60
Centamin Egypt . . . . . . . . . . . . .169.50 –0.30 194.40 103.50 Intl Personal Fin . . . . . . . . . . . . .280.10* –0.90 284.60 173.50 RIT Capital Partners . . . . . . . . .1129.00 –23.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .697.50* –5.50 744.00 528.00
Centrica . . . . . . . . . . . . . . . . . . .323.80* +2.00 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .402.50* +3.20 407.70 248.20 Rolls Royce . . . . . . . . . . . . . . . .592.00 –9.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1260.00* –26.50 1344.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .754.00 +6.50 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .310.00 –0.70 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1803.00 –2.00 1824.00 1101.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3085.00 +35.00 3711.00 2551.00 Investec . . . . . . . . . . . . . . . . . . .508.50 –4.00 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .47.82 –1.67 58.95 28.25
Close Bros . . . . . . . . . . . . . . . . .745.00* +5.00 803.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .63.75 +2.20 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1971.00 –1.00 2068.50 1621.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .233.10 –2.40 278.60 205.50 Jardine Lloyd Thompson. . . . . . .578.50 +6.50 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1907.00 –2.00 1997.50 1550.00
COLT Group . . . . . . . . . . . . . . . . 118.90 +0.70 144.20 107.70 Johnson Matthey . . . . . . . . . . .1810.00 +6.00 1825.00 1354.00 RSA Insurance . . . . . . . . . . . . . .133.80* +2.50 142.00 114.10 www.interactivedata.com

M&S success fails to stop a Investors hold off

drop in the FTSE 100 index ahead of Fed report
Data yesterday showed US claims Luxury goods firm Burberry was implications for a market hoping that
THELONDON for unemployment benefits fell to a
near three-month low last week,
another good gainer, adding 2.5 per
cent after an upbeat trading update THENEW YORK weak data will spur the Federal
Reserve to take further steps to boost

REPORT pointing to some improvement in

the troubled labour market.
“The weekly (jobless claims) fig-
from mid-cap peer Mulberry, which
closed up 6.9 per cent on the AIM.
Defensive pharmaceuticals stocks
REPORT the economy.
“This one, unfortunately, gets into
the realm of economic psychology,”
ures we had out were reasonably were higher with AstraZeneca up 1.3 said Quincy Krosby, market strategist

B W
RITAIN’S top share index well received, unlike the ADP (jobs per cent and GlaxoSmithKline 1.9 EAK commodities and a at Prudential Financial in Newark,
closed lower yesterday, as report) the day before and, if any- per cent firmer. firmer dollar pressured US New Jersey.
weaker metals prices hurt thing, that just leaves us that little “Despite a muted day today, global stocks yesterday as investors “I think the market would appreci-
mining stocks, while Marks & bit more in anticipation of tomor- stock markets are still seem well shunned big bets before a ate (a number) that's a little better,
Spencer rose as investors warmed to row’s (non-farm payrolls) figures,” underpinned after this week’s jobs report that could determine the but that still allows the Fed to come
a trading update from the retailer. Hargreaves Lansdown analyst Keith strong rises and many in London are next move from the Fed. in.”
The FTSE 100 closed 19.26 points, Bowman said. still looking for the FTSE to move The Dow Jones industrial average The euro’s recent rally against the
or 0.3 per cent, lower at 5,662.13, The Bank of England’s Monetary above the year highs just above dipped 19.07 points, or 0.17 per cent, dollar stalled as investors booked
after rising 0.8 per cent on Policy Committee held its key inter- 5,800,” said Ben Critchley, a sales to 10,948.58. The Standard & Poor’s profits. The dollar and equities have
Wednesday to a five-month closing est rate at 0.5 per cent and left its trader at IG Index. 500 Index eased 1.91 points, or 0.16 had an inverse relationship as
high. total £200bn of quantitative easing Cairn Energy fell 4.2 per cent as per cent, to 1,158.06. But the Nasdaq investors take money out of stocks for
Mining stocks exerted the most purchases unchanged, as widely concerns arose about potential Composite Index added 3.01 points, the perceived safety of the greenback.
downward pressure on the index, expected. delays to Vedanta’s proposed deal to or 0.13 per cent, to 2,383.67. Alcoa kicked off the unofficial start
retreating after hefty gains in the Meanwhile European Central buy a chunk of Cairn India. The dollar reversed a long down- to earnings season after the closing
previous session, tracking a sharp Bank President Jean-Claude Trichet trend, slamming oil and gold mar- bell. The largest US aluminium pro-
decline in key base metals prices. said after the ECB kept rates on hold ANALYSIS l FTSE 5,662.13 kets, which in turn took a toll on ducer reported a lower third-quarter
Copper, aluminium and nickel at one per cent that sudden swings 7 Oct energy and mining stocks. Newmont profit, but said global markets were
prices fell 1.4 to 3.2 per cent as the in foreign exchange rates posed a 5,700 Mining Corp and Freeport-McMoRan strengthening. Its shares rose 3.2 per
dollar recovered. threat to economic growth. Copper & Gold both fell more than 2 cent to $12.59 in extended trade.
On the upside, Marks & Spencer Risk-sensitive banks were a big 5,500 per cent. But some lacklustre earnings
recovered after falls earlier in the drag on the index as investors rotat- Investors said better-than-expected reports weighed on the market dur-
session, adding 4.9 per cent after ed out of the sector after buying in weekly jobless claims limited ing the regular session after PepsiCo
5,300
beating forecasts for second-quarter recent sessions. declines, but the spotlight was on trimmed the top end of its earnings
sales. Sticking with financials, Man today’s larger non-farm payrolls forecast, while Marriott
But more generally analysts said Group was the top blue-chip per- 5,100 report. International’s results failed to beat
market moves were limited ahead of former, jumping 5.1 per cent, with Today’s report is expected to show high expectations. Pepsi was down 3
the US September jobs report due traders citing talk of bid interest 4,900 payrolls were unchanged in per cent at $66.10 and Marriott slid
today. from a US bank. 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep September, but the release has bigger 5.8 per cent to $35.67.
CITYA.M. 8 OCTOBER 2010
The age of flexible pensions
The coalition looks set to try to
encourage saving by giving us
more choice, says Juliet Samuel
A
S UNIONS reacted furiously to the
publication of Lord Hutton’s public
sector pensions review yesterday,
Britain’s working population has a
trickier issue to resolve than raising
“French-style riots”: what to save and how.
Despite de-leveraging significantly over
the last year, Brits are still not saving
enough. And on top of the pensions deficit,
it is now also vital to consider what regula-
tory changes lie ahead. Most importantly,
savers could well find that they have more
choice than ever to determine how they
save – but that could include the ability to
spend yourself into ruin as well as the flex-
ibility to provide better for your retirement.
The UK’s looming pensions crisis is forc-
ing the government into action, but not all
of its intentions are yet clear. Most pressing
is the deadline of April next year, which is
when Labour’s complex proposals on a
tapering tax relief for pension savers would
come into effect if the coalition does noth-
ing. Most commentators agree that the
change would be overly complex to admin-
ister and the government has signalled its
intention to ditch it.
But doing so means that the coalition
has to come up with an alternative plan for
pensions tax relief. The most likely out-
come is a lower cap on annual pension con-
tributions, probably of around
£40,000-£50,000, a considerable drop from
this year’s cap of £245,000.
Counter-balancing this curtailing of
choice is an end to compulsory annuitisa-
Free banking will soon be a thing of the past
A low interest rate environment
has revealed the cost of current
accounts, writes Jessica Mead
I
N AN environment of persistently low
interest rates, it has become increas-
ingly hard to find a free current
account that pays any credit interest
at all, according to personal finance infor-
mation website Moneyfacts.co.uk.
Its research, which was published earli-
er this week, showed that 55 per cent of
current accounts on the market pay no
credit interest while a further 28 per cent
pay 0.10 per cent or less. At the same time,
Investment | Personal Finance
tion, which the government announced in
the June emergency budget. Under the lat-
est proposals, pensioners will no longer be
forced to buy an annuity at the age of 75 if
they can demonstrate that they can gener-
ate a minimum level of income from their
pension pot. Fidelity Investment Managers’
Tom Stevenson is hoping that this is altered
Flexibility brings further to require only a demonstration of
dramatic possibilities capital rather than income: “Otherwise,
people might be forced to annuitise part of
Picture: ALAMY their pension in order not to have to annui-
tise the rest,” he says.
If the coalition does go for a capital
rather than an income requirement, it will
enable pensioners to keep their funds
invested and to rely on assets that deliver
capital growth (such as emerging market
equities) rather than pure income. Russell
Investments’ Irshaad Ahmad thinks that
either way, today’s savers should plan on
keeping their pensions invested – particu-
larly with bond yields so low: “Consumers
can no longer afford to regard retirement
as the ‘cut-off’ wealth accumulation point,”
he says. “By moving all investments over to
cash, many retirees unknowingly miss a
ANALYSIS l Private pension scheme membership (2008 data)
Large employers and
higher managerial
Higher
professional
Lower managerial
and professional
Intermediate
occupations
Small employers and
own account workers
Lower supervisory
and technical
Semi-routine
occupations and
technical
Routine
occupations
0 10 20
the number of fee-paying current
accounts has doubled over the past five
years, luring customers with better inter-
est rates, free insurance, breakdown assis-
tance and private healthcare, for example.
Consumer champion Which? found
that it costs you about £40 a year to keep
£1,500 in your free current account as
opposed to a top instant access savings
account because you are missing out on
the opportunity to earn a decent rate of
interest. It also points out that while you
are earning only a very small amount of
interest, your bank is investing your
money at a higher rate.
But the British Bankers’ Association
(BBA) stressed: “Current accounts are not,
and never have been, intended for people’s
savings, although many do attract a small
huge opportunity.”
But beyond these changes, there could
be a more fundamental alteration to the
regulation of UK savings. Instead of main-
taining the current hard distinction
between ISAs and pension savings, it is pos-
sible that the government will enable
savers to move money seamlessly between
the two. Stevenson thinks that the current
rigidity discourages people from saving
because they do not want to lock up their
money until retirement in case they need it
for other purposes before then, such as buy-
ing a house. “Having a more flexible, holis-
tic savings regime would give people the
confidence to save knowing they can access
their money but also roll it over into a pen-
sion when they feel ready,” he says.
Such a change would mean that individ-
uals have more choice over how they save –
but also more responsibility for how those
savings are invested and used throughout
their lifetime. With such a large gulf
between the nation’s pension needs and its
current capacity to fill them, that is a
daunting responsibility – but also one that
savers should embrace.
Men Women
Source: ONS Pension Trends 2010
30 40 50 60
amount of interest. They are exactly what
they claim to be, an account from which
everyday transactions such as direct debits
and ATM withdrawals are managed.”
With the number of fee-paying current
accounts on the rise, does this mark the
end of free current accounts?
Moneyfacts.co.uk certainly thinks so: “If
the rising trend in fee paying accounts
continues, it could suggest the beginning
of the end of free banking as we know it,”
says spokeswoman Michelle Slade.
She adds: “Banks are keen to tempt cus-
tomers into opening fee-paying accounts
as a large proportion of customers will pay
the monthly fee and not use the benefits.
A few years ago, fee-paying accounts
offered better overdraft and credit interest
rates as well as additional benefits, but
21
PERSONAL
FINANCE NEWS
BY JULIET SAMUEL
CONSUMERS PAYING OFF CARDS FASTER
Data from the British Bankers’ Association
shows that the number of credit card pur-
chases has been on the rise over the last
year. While there were 158m purchases on
cards in August 2009, July 2010 saw 169m
and in August this year consumers upped
the number of purchases to 173m. But bal-
ances dropped 5.3 per cent over the same
period from £64.1bn in August last year to
£60.7bn this August, so even though con-
sumers are using their cards more, they are
paying off their debt quicker. Confused.com’s
head of credit cards Chris Griffiths remarked
on the data: “Customers who use their credit
card as a means of spending should seriously
consider the additional benefits offered by a
rewards credit card. Users can earn air miles,
cash-back, or shopping points from their
spend.” As examples, Confused.com recom-
mends the Lloyds TSB Airmiles Duo, the
Amex Platinum Cashback and Sainsbury’s
Nectar Card.
SMALL FIRMS BAILED OUT BY FAMILY
Research by More Than Business reveals
that small businesses are turning to friends
and family to stay afloat during times of
tight credit. Eighteen per cent of small firms
surveyed say that they have been forced to
seek alternative forms of credit outside the
banking system. These other sources include
7 per cent using credit cards, 7 per cent
going to loans companies and 10 per cent
borrowing from friends and family. Inflation
is also contributing to small business woes,
with business costs like professional services
and advertising having risen 4.9 per cent in
the last year. Mike Bowman, head of More
Than Business says: “Small firm cash flow is
suffering and in a slowly recovering econo-
my, some small business owners may be
unable to rely on financial support from
banks. As a result, they have to look else-
where for the cash injection they need to
survive.”
BARCLAYS MOBILE BANKING ROAD-SHOW
Russell Square was invaded by Barclays bank
managers yesterday as they gave demon-
strations of how to use the bank’s new
mobile banking service. The service allows
customers to check their balance, view
statements, find their nearest branch or
ATM, make transfers and set up third party
payments while on the move. The event was
the first in a series of road-shows that will
pass through Harrogate, Cardiff, Colchester,
Manchester and Birmingham. Barclays digi-
tal banking director Sean Gilchrist said:
“Research has also shown that people who
use mobile banking are more in touch with
their bank balance and have a better grasp
on their finance.” Mobile banking has yet to
take off in the UK despite being increasingly
widespread in poorer regions such as sub-
Saharan Africa, where many consumers
already use their mobiles to transfer money
% – often without the need for a traditional
bank account.
this is no longer the case.”
But as the BBA pointed out yesterday,
UK banks are quite unusual in that they
do offer the option of fee-free transac-
tions. In France, for example, you only get
a chequebook free with most current
accounts. A monthly fee is charged for
your debit card and internet banking, two
products that Britons take for granted.
Nonetheless, Which? argues that free
banking in Britain has always been an illu-
sion. “Whether it’s through low interest
rates or high charges, we all end up paying
for our current account in the end,” says
Which? chief executive, Peter Vicary-
Smith. But given current trends, it may
not be too long before we end up paying
directly as well as indirectly for our bank
accounts.
 Living
22 CITYA.M. 8 OCTOBER 2010

| The Knowledge

CURRENT MORTGAGE DEALS BY JESSICA MEAD RENTING

LENDER FIXED/FLEXIBLE RATE
(PER CENT)
UNTIL STANDARD RATE
(PER CENT)
APR MAXIMUM LOAN
Source: MoneySupermarket.com

(PER CENT) TO VALUE (PER CENT)

Q&A
James Davis
First Direct Flexible 2.19 2 years 3.69 3.5 65 CEO AND FOUNDER
HSBC Flexible 2.19 Term 2.19 2.2 60 OF UPAD.CO.UK

NatWest Flexible 2.19 To Nov 2012 4 4 60 Dear James, my tenant can’t pro-
ING Direct
Yorkshire BS
Flexible
Flexible
2.29
2.39
2 years
To Nov 2012
3.5
4.99
3.5
4.7
60
60
Q. vide a reference from a previous
landlord. Is that a problem?

A.
When you’re assessing whether a
tenant is right for your property, you
Principality BS Fixed 2.74 To Nov 2012 4.99 4.9 75 can do all sorts of checks. That could
Santander Fixed 2.75 To Dec 2012 4.2 4.2 60 be a credit reference, bank reference, employ-
er’s letter and all sorts. You then have to
ING Direct Fixed 2.84 To Nov 2012 3.5 3.5 60 make a judgment based on all this informa-
Post Office Fixed 3.35 To Dec 2013 3.99 4 65 tion as to whether the person is someone you
want as a tenant.
Mansfield BS Fixed 3.49 3 years 5.59 5.2 75 If your prospective tenant doesn’t have a
reference from a previous landlord, that’s a
not a problem in itself. But you will want to
FOCUS ON: WOOLWICH, SE18 BY JESSICA MEAD know why. People rent property for all sorts
of reasons. It could be they are new to the
rental market as a young person or for some
reason they are renting for the first time in
many years, perhaps because of a relation-
THE ACADEMY, WOOLWICH ROYAL HERBERT PAVILIONS, ship break-up or the like. That shouldn’t be a
Price: Apartments in Kitchener House GILBERT CLOSE problem and you can assess them by other
checks. But if you think they are hiding
start at £260,000 for a two-bed. Price: £350,000 something from you then you might want to
This conversion of the 18th century for- It might not have a private garden but find another tenant or protect yourself by
mer Royal Military Academy has creat- this two-bedroom apartment is set in getting them to provide a guarantor.
ed a whole range of different-sized eight acres of grassland. Formerly a mili-
apartments ideal for the first-time tary hospital, it has a decent-sized recep-

buyer. Unusually for new-builds, the
flats retain the original building’s period
features. It is hoped the development
will eventually have a community cen-
tre, fitness centre and a cricket pitch.
Contact: Hamptons International on
020 7758 8488, www.hamptons.co.uk
MARLBOROUGH ROAD
Price: £425,000
If you’re after stunning river views, then
this smart duplex penthouse next to the
river is for you. Set in a gated develop-
ment, it has two double bedrooms as
well as a smaller bedroom and a mezza-
nine gallery. The penthouse also has an
open-plan kitchen and living area. It is
located in the heart of Woolwich and is
close to both the DLR station and the
Thames Clipper.
Contact: KFH on 020 8852 9451,
www.kfh.co.uk
NEED TO KNOW | AREA INSIGHT
Commuting: Woolwich is served by
both the DLR and the mainline rail
service into London Bridge and Cannon
Street. It is also just across the
Thames from London City airport.
Schools: Christ Church CofE primary
in Shooters Hill has excellent Key
Stage 2 results as does St Margaret’s
CofE. In terms of secondary schools,
Blackheath High School for girls and
the mixed Thomas Tallis school do well
at GCSE and A-Level.
tion room and a separate dining room,
which could become a separate bedroom
or a study if needed. The apartment
comes with two parking spaces as well as
a swimming pool, gym and tennis court.
Contact: KFH on 020 8852 9451,
www.kfh.co.uk
Crime: Above the national average.
Restaurants & Pubs: For restaurants
you’ll have to head to Blackheath,
Canary Wharf or Greenwich. In terms
of pubs, The Bull on Shooters Hill is
described as a great, old-fashioned
south-east London pub.
Parks & Leisure: Apart from being on
the banks of the Thames, there are
plenty of green spaces including
Woolwich Common and Charlton Park.
Q.
I want to let my flat to the friend
of a friend, who comes highly rec-
ommended but doesn’t have a
deposit. Do I have to take one?
A.
No, it’s not compulsory. But it’s
strongly advised for a number of rea-
sons. It’s protection for you should
your property get damaged by the tenants
over the course of their residence. It’s a use-
ful negotiating tool at the end of the tenancy.
It also protects you against rent arrears.
If your tenant does a runner at some point,
owing you cash for the rent, then you can
use the deposit against the unpaid rent. It’s
much easier than pursuing the tenant
through the courts.
But if you do take a deposit, and the ten-
ancy is contracted under an Assured
Shorthold Tenancy (AST), then don’t forget
that you are obliged by law to protect it
under a deposit protection scheme. You must
lodge the money with a government
approved scheme and also inform your ten-
ant of the details within 14 days of the ten-
ancy commencing.
James Davis is CEO of online lettings
agent www.upad.co.uk. You can also follow
Upad on Twitter: @avoidthevoids.

THE ACADEMY
YOUR PIECE OF HISTORY
KITCHENER HOUSE & FARADAY HOUSE
A UNIQUE RANGE OF APARTMENTS IN
HISTORIC SETTINGS IN WOOLWICH
SPACIOUS 2 BEDS FROM £260,000
Woolwich Arsenal City Airport Greenwich Canary Wharf London Bridge
DLR & Mainline 6 mins 12 mins 17 mins 19 mins

WWW.THEACADEMY-WOOLWICH.COM
BORN 1741. REBORN 2008.
WOOLWICH COMMON, LONDON SE18 4JJ
ENQUIRIES
All photography of The Academy, Woolwich. Note: All journey times are approximate and taken from www.tfl.gov.uk 020 8856 0034
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Get your home ready for Christmas.

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CITYA.M. 8 OCTOBER 2010
Sexier reasons for
Soho investment
Donata Huggins discovers that London’s
former red light district has been reborn
S
OHO is said to have been home to
popular culture’s edgier side for the
last 200 years: 18th century commu-
nists, beatniks and the swinging
side of the sixties. Not exactly the kind of
place respectable folk want to call home.
Or so you may have thought.
The area is undergoing what nostalgists
might call “sterilisation”. Westminster
council has cracked down on the drug
dealers and prostitutes and an active resi-
dents association has drawn together a
community. Savvy investors have spotted
this and are staking their claim before the
prices match those of Mayfair and Covent
Garden.
The prices are not far off now.
GreaterLondonProperties.co.uk boasts
rental values of £525 for a one-bedroom
flat. Impressive stuff. And when you think
about it, it makes a lot of sense.
You could not get more central: Oxford
Street to the north, Regent Street to the
west, Leicester Square to the south and
Charing Cross Road to the east. Four tube
stations within a five minute walk, a regu-
lar flow of taxis, an overland station and
the coming Crossrail line where the old
Astoria used to be. The world of London is
on Soho’s doorstep.
The parallels to Mayfair are sharper
than expected. Properties on Upper John
Street offer parking, a porter and outside
garden space. That is a pretty rare combi-
nation for the price and centrality.
Property investors have been quick to
swoop in and convert vacant offices into
apartments. Investment firm Shaftesbury
have done just that and are now raking in
£345 a week per apartment.
While you might think that the noise of
West End nightlife would be unbearable
for the inhabitants, Daniel Hamilton, a
Windmill Street resident, says: “It’s not as
bad as you think. It’s very quiet during the
day, which is great if you work from home.
It is frequently busier at 4am than at
4pm.”
The area can offer a homely community
feel too. The residents association The
Soho Society organises a full calendar of
events including a summer festival of
music and food. Hamilton, who works in
Westminster -- a five-minute walk down
Living | London 25
THE SALT HOUSE BREWER STREET
There are two remaining flats with walnut wood A two-bedroom period conversion flat with a
floors, underfloor heating and designer kitchens. shower room and balcony.
Price: £629,950
Price: Between £575,000 and £595,000
Call Greater London Properties on 0207 734 4062, Call Chesterton Humberts on 020 7836 2888,
www.greaterlondonproperties.co.uk www.chestertonhumberts.com
FACTS | SOHO
Postcode: W1 Council Tax: Below the national Green spaces: St James’s Park and
Tubes: Oxford Circus, Piccadilly average Golden Square are only five minutes
Circus, Leicester Square, Tottenham Community activities: The Soho walk away.
Court Road Society has a calendar of events and Restaurants: China Town is five min-
Schools: Central London independ- discounts for local residents such as utes away. Randall and Aubin oyster
ent schools such as City of London, £10 tickets to the Soho Theatre on bar is a local favourite.
St. Paul’s Boys and Westminster are Wednesdays. See www.thesohosoci- Theatres and bars: What Soho is
all around 20 minutes away. ety.org.uk for more information. famous for.
the road -- insists that there are places for Big property investors clearly think
peace and quiet when clubbing, music, there is a residential market to be tapped
fine dining or theatre do not appeal. He into and current rental values certainly
says: “Believe it or not, the casinos have suggest it. Those looking for lucrative
very quiet bar areas which are open practi- investment should buy soon before prices
cally all night. It’s a kind of a local secret.” creep up.
 NEW SUITES WITH BALCONIES Suites
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Landlords!

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CITYA.M. 8 OCTOBER 2010 Living | Brussels 29

Flats for the Eurocrat: a Brussels bargain

It’s not quite as cheap fell by only 1 per cent and has risen by 8
per cent over the past year.
as frites but the city And although income tax is high in
Belgium, you get excellent services and
offers excellent value, there is no inheritance tax. “Property own-
ers pay no capital gains tax (CGT) on resi-
writes Jessica Mead dential property if held for more than five
years and there is no CGT to pay on share-
holder transactions,” says Eoghan Quinn,
commercial manager for Thornsett
Belgium. Thornsett already has three

I
F YOU’RE moving to Brussels, it’s
unlikely to be for the Belgian beer,
the moules-frites and the chocolates.
Most Britons relocate to the Belgian
capital for work and join the 100,000-
strong expat community of European
Union workers, lobbyists and lawyers for
at least a year or two.
While most expats tend to rent when
they first arrive in Brussels, they are more
likely to buy if their contracts get renewed
or extended. And if you’re expecting to be
living in Brussels for more than a couple
of years, it can be worth getting on the
city’s property ladder.
Besides Brussels’ high quality of life,
you’ll get much more for your money
than you would in many other European
cities. According to Knight Frank research,
in the second half of 2009, the average
sales price per square metre for Woluwe-
St-Pierre, one of Brussels’ most exclusive
residential areas, was €3,399. This com-
pares to an average of more than €6,000
for both Paris and London, says Savills.
The property market is also extremely
stable and doesn’t suffer the peaks and
troughs experienced in other cities.
During the recession, the property market
high-quality property developments in
Brussels – Leopold Village, WoluwePark
and Boniface Square – and another cur-
rently in the planning stages.
Prices in Thornsett’s Leopold Village,
which is in the heart of Brussels’
European district, start at €350,000 for a
two-bed apartment. Of the 108 apart- Thornsett’s
ments launched in May 2007, 65 have development
been sold while 43 are still up for sale. at Leopold
Around 60 per cent are owner-occupied village and
while 40 per cent are investors. one of the
The recently launched duplex and penthouses
triplex penthouses (pictured) are priced
from €750,000 excluding taxes. Of the six
up for sale, two have already been bought
while another two are under offer.
And should you be seconded overseas,
NEED TO KNOW | BRUSSELS
the European institutions in the city guar-
antee strong rental demand with legisla- Languages: Both Flemish and French Paris and London in 80 and 115 min- International School of Brussels and
tion in the landlord’s favour. Rents are is spoken but English is often used by utes respectively. The airport is about St John’s International School.
also consumer price index-linked, which European Union workers. 10 minutes from the centre of the Food & Drink: The city is well known
provides protection against rising interest Transport: If you’re arriving in or city. for its pub scene and cafe culture. Les
rates. Investors at the Leopold Village are leaving Brussels it will probably be by Schools: The large expat community Brasseurs de la Grande-Place is one
so far experiencing rental yields of train. The high-speed Thalys takes means that the education system of the only working breweries left in
between 5.5 and 6 per cent.
Whether you’re in Brussels for a few you to Amsterdam in under two caters for international students with Brussels and offers Belgian beer and
years or a few decades, buying makes hours while the Eurostar gets you to English-speaking schools such as the food.
sense.

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Spacious 1, 2 & 3 bedroom
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• Less than 15 minutes walk to
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• Secured basement car Typical living room.
parking included

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(London average 500 sq ft) Prices from £232,500*
2 bedroom/2 bathroom apartments up to 904 sq ft
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3 bedroom/2 bathroom apartments 1098 sq ft
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0800 883 8607 www.telfordhomes.plc.uk
or (out-of-hours) 0800 032 0077 woodford.sales@telfordhomes.plc.uk
*Prices correct at time of going to press for apartments available in Freshman’s House, Grove House and Gatekeeper’s Lodge. Photograph depicts Grove House and Gatekeeper’s Lodge Courtyard.
 City Focus
30
The surest bet for
business success
Over-achiever is an understatement, Trost was
born an entrepreneur, says Donata Huggins
O
NLINE gambling grew faster than
Facebook in the UK last year. Jason
Trost and his business partner,
Hunter Morris, spotted the oppor-
tunity three years ago and moved from
the US to London to set up their online
betting company, Smarkets. Trost quit
his UBS job to come to the UK -- a gamble
that seems to be paying off.
Trost is an all-American overachiever,
almost destined to make Smarkets a suc-
cess. He’s smart (a computer science grad
from Northwestern), a former equities
trader and developer, not to mention
attractive and charming. A born leader,
and he seems to have always known it.
When asked what he wanted to be when
he was a kid he said either a professional
pro-baseball player or the president. His
ambition has not worn thin. While a lack
of athletic ability has ruled out baseball,
he says he hopes to pursue politics in 10
to 15 years time.
Indeed, it was the presidential election
in 2004 that sparked Trost’s interest in
the betting market in the first place: “I
was fascinated by the fact that Bush and
Kerry could trade on the betting market
between 0-100 and that was indicative of
the probability of them actually winning.
So say, John Kerry went windsurfing and
all the pundits are on CNN saying he had
blown his chances, you could go online
Getting the idea engine started
Street Kitchen are experimenting
with low-cost, high-profile ways to
reach diners, says Donata Huggins
J
UN Tanaka and Mark Jankel’s entre-
preneurial spirit offers hope to any-
one who has ever fantasised about
setting up their own restaurant. For
just £4,000 initial set up costs the pair have
rented an Airstream truck and are driving
around London this week selling their
gourmet meals-on-wheels. They are serving
a seasonal British menu with dishes such
as home smoked salmon and braised
featherblade of beef wheeled right into
tourist areas. In just two days they have
made back their initial investment, prov-
ing that they have tapped into one very
effective business model.
The pair hope to drum up the same
excitement that gourmet food trucks have
created in the US. The trucks have stormed
the States thanks to discerning office work-
ers hungry for better lunch options and
the power of social media. Customers hunt
for a truck’s location using information
from Twitter and Facebook, bringing a
twentieth century feel to following the old-
fashioned ice cream truck music. A single
lunch truck in Seattle grossed $400,000 in
its first year. Kogi BBQ in Los Angeles has
75,869 Twitter followers.
Both Tanaka and Jankel work in the
| Entrepreneur
and watch in real time what the real
money market thought.”
While he does not want Smarkets to be
known for political betting it has certain-
ly made them stand out. They grabbed
media attention last week when they cor-
rectly predicted the outcome of the
extremely close Labour leadership race.
Smarket’s profile in this field has no
doubt been helped by a successful adver-
tising partnership with notorious politi-
cal blogger Guido Fawkes.
But betting per se does not interest
Trost. He and Hunter Morris are driven
by a desire to create a fast and easy to
use online platform: “We were looking
at the gambling industry a few years
back and we thought there was lots of
ways it could be improved.”
PASSION FOR TECHNOLOGY
Trost’s passion for technology makes
him ambitious for Smarkets. “There is a
lot of opportunity out there. For
example, our technology can be applied
to the payment industry, PayPal could do
with some improvements,” Trost argues.
“There’s so much innovation to come
and I want Smarkets to be part of it.”
When asked how big he wants Smarkets
to be he grins and says: “Big. Everything
is bigger in America, right?”
Even as a child Trost had an entrepre-
It’s fast food fame for
Jun Tanaka and Mark
Jankel.
restaurant sector, but this is their first
venture out on their own. Jankel is trying
to set up a full-scale restaurant at the
moment. He says he has been delighted by
how much easier setting up the mobile
business is than the stationary one. For a
food truck all you need is a driving
licence, health and safety and hygiene cer-
tificates. For a stationary business, he says
you need half a million pounds and a lot
of patience to comply with all the regula-
tions.
The craze in the States has seen some
In association with
The co-founder of Smarkets Picture: Micha Theiner/City A.M.
neurial streak, selling wrapping paper
door-to-door: “I thought it was cool”.
He did not put his dreams on hold
while at university either: he designed
software that helps patients diagnose
themselves from their lab tests, it still
runs on the internet.
He explains: “Entrepreneurs want
to create something big and change
the world. Entrepreneurs always look
towards the horizon, I always wanted
to do something big.”
CV | JASON TROST
Age: 29 Drinking: Single malt whisky
Born: North Carolina, US Reading: “Email at the
Lives: Kentish Town moment”
Marital status: Single Idol: Alexander Hamilton, one
Studied: Computer science at of America’s founding fathers.
Northwestern, Boston, US Talents: speaks German and
Drives: “Sadly I haven’t owned French and was a football referee
a car since 2003” for five years
quitting corporate jobs to get trucking.
Native Belgian Thomas DeGeest spent a
decade working as an IBM management
consultant in New York, but sacked it in to
sell the waffles of his home country from a
big yellow van. DeGeest gets attention
from his Twitter followers by asking them
trivia questions for freebies.
Food trucks and new media seem to be a
recipe for success at the moment. Low
overheads and the ability to sidestep red
tape present an opportunity to move from
a craze to a serious business model.
CITYA.M. 8 OCTOBER 2010
?
Q&A
LOBBYING
Q.
I run a small business. Am
A.
I too small to lobby the
government about my concerns?
It is a myth that it is difficult to
obtain the ear of government. It is in
your constituency MP’s interest to
listen to you because they want to at least
appear to care about your company’s con-
cerns. And indeed, they probably do.
Businesses frequently lobby against taxes,
bureaucracy or to defend areas of the public
sector that support their business. But com-
municating this can be trickier than you
think.
You can start by simply writing a letter or
email. MPs’ contact details are usually listed
on their websites, otherwise a letter
addressed through the House of Commons,
London, SW1A 0AA will always reach their
office. Do not be disheartened if you do not
receive a response quickly. MPs receive hun-
dreds of letters a day. While there is a
chance you will not receive a response it is
worth a shot because many MPs have a
“reply to all messages” policy so they will
come to you eventually.
Making an appointment to meet your MP
can also be effective. Most MPs run surger-
ies once a month in their constituencies. You
can phone the MP’s office and ask for an
appointment. If you are struggling to find
the direct line to your MP’s office simply ring
the House of Common’s switchboard on 020
7219 3000 and ask for your MP by name. Be
warned there can be a long waiting list.
Do some research about your MP before
you ask for their help. What does he or she
campaign for? This is very easy to find out.
The www.theyworkforyou.com website
offers your MP’s voting record and all their
speeches in the House of Commons. Try to
match up your concerns. See it as a pitch
and ensure you flag up that you are their
constituent in the first line. Your location
matters, they will only represent their con-
stituents.
Q.
At what point should I seek pro-
fessional help?
A.
If your problem is more general,
such as high taxes or business regu-
lations, joining a campaign group is
the most effective approach. Groups such as
the TaxPayers’ Alliance, The Federation of
Small Business and The Institute of Directors
are very effective at getting their members’
views heard. Joining these groups may also
offer you networking opportunities to meet
like-minded business people
and politicians.
If your problem is more
specific or ambitious you
may need to pay for some
professional help. Finding
a consultant is easy
through the Association
of Professional Political
Consultants (APPC)
website. They list all
of their accredited
members and
their clients. Look
for a lobbying
firm who cur-
rently handles
clients which
runs businesses
similar to your’s.
Let several firms
pitch to you. Let
them know your
budget straight
away so that you
can easily com-
pare what each
firm is willing to
offer for that
price.
Donata
Huggins
 Lifestyle
32 CITYA.M. 8 OCTOBER 2010

SIMPLE STYLE
FOR GIVING A
PRESENTATION
Sara
Hollamby
Style
Counsel

F
OR MEN and women, your image in pre-
sentations is vital to get right, not only to
make a good first impression, but also to
help keep an audience focused. So what
should you wear?
You want to feel comfortable – your cloth-
ing should be the last thing on your mind
while you’re speaking, so start thinking about
it well in advance. You need to look authorita-
tive, so I recommend that you’re always at

Heritage hotel
The relaunched Savoy inspires a and style to match. In the first half of the
20th century it drew royalty, film stars,
classic look, says Timothy Barber aristocrats and world leaders, including
Coward, Bogart, Bernhardt and Chaplin.
Appropriately, the reopening comes at a
time when traditional fashions imbued
double-breasted, it’s a suit look that’s per-
fect for sauntering into the reborn Savoy,
and perhaps heading for a cocktail in the
gold leaf-lined booths of the Beaufort Bar,
or for afternoon tea under the stained-
glass cupola of the ineffably grand
least a notch smarter than your audience.
This will generally mean wearing your best
suit, or maybe a professional looking dress
and jacket (skirts are more powerful than
trousers, girls). Check well in advance that it’s
clean, pressed well and there are no buttons
missing or hanging hems – don’t leave this
task to the morning of the presentation.
Choose a crisp shirt in a colour that suits you,
and likewise your tie (check for stains).
When deciding on which tie, or which dress
and jacket, think of your audience. Who are
they? How old are they? What’s the ratio of
men to women? Think how you would like to
be perceived by your audience, as opposed to
what you fancy wearing. Consider also the

N
OTHING speaks more of classic
British glamour than the Savoy
Hotel, which reopens this weekend
after three years’ closure and a
£220m refurbishment. Founded on the
Strand by opera impresario Richard D’Oyly
Carte in 1889, it was the country’s first
truly luxury hotel, and attracted the glitz
1 3
Above, the famous with a sense of heritage redolent of the Thames Foyer. Mix it with some two-tone, likely temperature of the room – nerves can
entrance from The hotel’s glory days are on trend. The heyday wing-tip brogues, a fedora-style hat and a make you sweat anyway, but being cold
Strand to the Savoy of the Savoy was also the heyday of Savile retro-cool Piaget watch (the Swiss compa- makes your mouth seize up.
Hotel. Row, which has lately been getting back its ny has just opened a flagship store on New If it’s a big presentation, then I recommend
groove. The style icon of the day was the Bond Street) and you have the perfect mix- you wear something bright and plain; a large
Duke of Windsor, who popularised the ture of class, history and panache with audience may not be able to see
classic plaid pattern that would become which to make a splash in London’s most your features, so give them
known as the Prince of Wales check. Worn famous centre of fashionable exclusivity. something bright to focus on,
like your tie or a red top.
When they’re looking at you
4 the chances are they’re lis-
tening, so make it easy for
5 them. For women this
Jaeger suit (£598,
www.jaeger.co.uk) is a
colourful yet subtle red, in
an interesting and
6 professional style.
Avoid striking patterns, which
can be distracting.
Above all keep your outfit
simple, professional and flat-
tering – remember you don’t
want your audience to even
1. Double breasted Prince of Wales check suit by Huntsman, from £3,995 for two notice your clothes; it’s you, your
piece bespoke suit. www.h-huntsman.com message and how you get it
2. 110th Anniversary charcoal check by Austin Reed, £500, www.austinreed.co.uk across that counts.
3. Red polka dot silk scarf by Aspinal of London, £35, www.aspinaloflondon.com Sara Hollamby is a business
4. Altiplano watch in white gold by Piaget, £13,200, www.piaget.com image consultant with
5. Sloane brogues by Loake Shoemakers, £170, www.loake.co.uk
2 6. Atlantic felt hat by Lock & Co, £150, www.lockhatter.co.uk
WorkingVoices.com email:
sarahollamby@blueyonder.co.uk

FILM REVIEW
TIMOTHY BARBER
(Katherine Heigl) and Eric (Josh Duhamel)
LIFE AS WE KNOW IT keep running into each other at events
Cert: 12A like their friends’ wedding, and keep on
disliking each other. Then their friends
hhhii die in a car crash, but not before putting it
in their will that, in the event of their
mansion as well (so that Sophie can keep
her bedroom – no really). So Holly and Eric
move in, and between dealing with pooey
nappies, zany neighbours and watching
Sophie take her first steps, discover the
respective person inside.

H
OLLY and Eric don’t like each other,
which means you’ve probably
already worked out how this rom
com ends, but let’s continue any-
way. After their mutual pals Alison and
Peter set them up on a disastrous date
(she’s stuck up, he’s a cad), Holly
deaths, Holly and Eric should take custody
of their baby daughter Sophie.
On the list of the most cynical con-
trivances Hollywood can come up with for
bringing unlikely couples together, this
must rate pretty highly. But what the hey,
Alison and Peter left the pair their massive
Somehow, the film manages to be not
entirely terrible. It moves along efficiently,
Duhamel gets some laughs, and the teary
moments – crassly manipulative though
they are – tend to score. But it’s as pre-
dictable as a clock, and never justifies the
sympathy it wants us to feel for its leads. Josh Duhamel and Katherine Heigl get to grips with parenthood.
CITYA.M. 8 OCTOBER 2010 Lifestyle | TV& Games 33

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
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11.20pm FILM The Night
Listener: 2006.
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5am-7.30am Formula 1: The
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12.50am FILM The Singer:
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9pm CHOICE Paul O’Grady
Live: With guests Robbie
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10.35pm FILM American Pie:
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from the NIA Birmingham 11.55pm Cops in Crisis
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SKY SPORTS 3
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BRITISH EUROSPORT
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Man 10pm Ten Pin Bowling
11pm-12.30am WTA Tennis
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Great TV Mistakes 9pm Little
Britain. Vicky Pollard becomes
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the Bride 11.30pm Family Guy
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Ideal 1.15am Him and Her
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the Bride 4.10am Ideal
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7pm Hollyoaks 7.30pm Friends
9pm Wife Swap USA 10pm
FILM Snakes on a Plane 2006.
12.10am Scrubs 1.10am Wife
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Brian 3.25am Samantha Who?
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Switched
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Apocalypse 11pm Seven
of morbidly obese man John ITV1, 9PM
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together since Robbie rejoined Take
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6am How Does That Work? Answer food orders to the supermarkets.

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


QUICK CROSSWORD
  

SUDOKU KAKURO
14 17 30 15 7 34 16 
11 9 17
11 38   
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 42
12 8
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 7 8 8
    
above or to the left of it. 37 7
You can only use the digits 1-9 23 35
    and you must not use the
5
4 6    
same digit twice in a block. 10 16 33 18 3
   The same digit may occur 22 11
11
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column, but it must be in a
22
10
13
16
6
  
28
      separate block.
15 14 
45
 
12 6 17

      ACROSS DOWN
1 Tight-fitting hats (4) 1 Navigational
 
   WORDWHEEL M E
3 Hardy cereal grown for
forage and grain (6)
5 Female sheep (3)
instrument (7)
2 General conscious
awareness (5)
Using only the letters in the Wordwheel, you have 3 Stake (3)
    ten minutes to find as many words as possible,
H O 6 Principal (4)
4 Boredom (5)
7 Chair of state of
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters B a monarch (6)
9 Loss of bodily sensation
8 Regret (3)
10 Rapid bustling
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
B L with or without loss of commotion (3)
11 Light mid-afternoon
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
L S
consciousness (11)
14 Device operated by the
meal (3)
12 Narrow runner
QUICK CROSSWORD 9 8 1 6 2 7 3
insertion of a coin (4,7)
used for gliding
0 ) 6 ( & 5 ( & <
4 3 1 2 5 3 8 9 SUDOKU         
18 Employee who serves
alcoholic drinks (6)
over snow (3)
8 4 5 3 7 2 1 9 6          13 Perpetually young (7)
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7 1 7 9 8 5 8 20 Live-action film
7 5 & 8 1 1 , 1 *          15 Andean mammal (5)
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 Punter
34 CITYA.M. 8 OCTOBER 2010

| Sports
RUGBY TRADER CITY AM’S RUGBY BETTING EXPERT DAVID WILD ON THE HEINEKEN CUP

Munster can outshine fancied French

A
DISAPPOINTING showing from the
English clubs meant Northampton
Saints were the country’s only
team to reach the knockout stages
of the Heineken Cup last year. This year
Saints, Bath and reigning Premiership
champions Leicester Tigers will be joined
by three sides from the capital – Wasps,
Saracens and London Irish – in the compe-
tition and expectation is high.
The betting suggests that of these only
Leicester, 15/2 second favourites, will chal-
lenge the dominance of the French sides.
Title holders Toulouse are the 4/1 jollies to
win successive Cups and although the
Pyrenees side are the most successful in
the tournament’s history, with four wins
since 1995, I’d prefer to look to Ireland for
this year’s winner.
An Irish side has lifted the trophy in
three of the past five years and at 12/1 with
William Hill, Munster are a good value
each-way bet (½ odds for reaching the
final). They’re in the toughest of pools
along with Ospreys, London Irish and
Toulon, although they should still be
expected to top their group and reach the
knockout stages. They have reached the
semi-finals in each of the last three tourna-
ments and triumphed in the 2008 final.
With the magnificent Paul O’Connell
leading from the front as captain, Munster
have become European specialists. In a
close pool such as theirs, we can expect the
bonus points to be crucial in deciding who
qualifies and the Red Army have made a
habit of securing them in defeats away,
while at their Thomond Park home they
make it exceptionally difficult for their
opposition to cross the line.
Munster also boast arguably the best
half-back pairing in the competition with
Tomas O’Leary at scrum-half and Ronan
O’Gara at number 10. The experienced fly-
half was the second highest total points
scorer in the 09/10 competition with 98
points from eight appearances and has an
incredible overall Heineken Cup record of
1,138 points from 91 matches. Back O’Gara
to score most points this year at 8/1 with
Paddy Power.
We should not overlook the French

teams though and I’d advise buying Picture: GETTY POINTERS...

Clermont Auvergne’s pool index at 15 with Munster to win Heineken Cup each-way
Sporting Index. They’ve also been placed in at 12/1 with William Hill
a tough group with Leinster, Saracens and Buy Clermont Auvergne’s Pool 2 index
Racing Metro, but with superstars like at 15 with Sporting Index
Morgan Parra and Julien Bonnaire, first Ronan O’Gara to be top points scorer
place in Pool 2 is theirs to lose. at 8/1 with Paddy Power

FOOTBALL TRADER BEN CLEMINSON HIGHLIGHTS A COUPLE OF POINTERS FOR

ENGLAND’S EURO 2012 QUALIFIER

Montenegro will surely adopt defensive

ENGLAND
MONTENEGRO
Tuesday, 8.00pm, ITV1
ENGLAND have made a decent start to
their Euro 2012 campaign and put in a
solid performance to win 3-1 in
Switzerland last time. They should qualify
from this group with flying colours, but
Tuesday’s opponents Montenegro are no
pushovers having also won their opening
two games.
Montenegro only came into existence as
a side in 2006, but they have looked com-
posed and defensively astute in their open-
ing games and will provide a real test.
They have beaten both Wales and Bulgaria
1-0, while they also beat Northern Ireland
2-0 in a friendly in August.
Fabio Capello’s side have scored seven
goals in their first two games, but
tactics which will make things difficult
for England. Paddy Power offer 1/4 about a
home win which is too short for me
against a team who are yet to concede.
I wouldn’t be at all surprised to see the
game goalless at half-time and
Montenegro would be thrilled to leave
with a point. However, England should
prove too strong in the second half and I
like the look of the draw / England double
result at 16/5 with Paddy Power. It’s worth
bearing in mind that Capello’s side have
won their last 11 at Wembley.
Sporting Index quote goals at 3.1-3.3
and although England’s recent games
have been high scoring, I can see this one
being different. The advice would be to
sell at 3.1 and hopefully it will be goalless
at the break which would put us in a fan-
tastic trading position.
POINTERS...
Draw / England at 16/5 with Paddy Power
Sell total goals at 3.1 with Sporting Index

RACING TRADER BILL ESDAILE LOOKS AT TOMORROW’S CARD AT ASCOT

A
SCOT holds its final flat meeting
of the season tomorrow and it
looks a very tricky card. The big
betting race is the Ladbrokes.com
Stakes (3.40pm), won well by Opinion Poll
last year, who went on to win the Group 2
Lonsdale Cup at York in August.
The three-year-olds have dominated
this race in recent years, winning three
of the past four renewals, and there are
only four lining up tomorrow. Ralph
Beckett’s Vulcanite is the likely favourite,
as he’s going for a four-timer, but his
three wins have all come in small fields
and on quicker ground. The stable isn’t
in great form, either, so he is opposed
along with Michael Bell’s Prompter, who
always seems to find one too good.
The one I’ll be backing each-way is
David Wachman’s ICON DREAM at a mas-
sive 25/1 with William Hill. He was only
just touched off by Ted Spread in the
Chester Vase earlier this season and will
relish the cut in the ground. It also has to
be a major positive that his in-form train-
er has bothered to send him over from
Ireland for this.
John Gosden isn’t quite firing in the
winners like he was last month, but he
has a great chance to land the Autumn
Stakes with MASKED MARVEL. An
impressive winner of his maiden at
Sandown, connections see him as a
potential Derby horse and it might also
be worth snapping up some of the 33/1
available for Epsom glory.
POINTERS...
ICON DREAM e/w 3.40pm Ascot (tomorrow)
MASKED MARVEL 4.15pmAscot (tomorrow)
MASKED MARVEL 33/1 The Derby
CITYA.M. 8 OCTOBER 2010 Sport 35

Results
Lewis-Francis Styche 12
Norwood 18
BLUE SQUARE BET PREMIER
Forest Green ..............(2) 3 Grimsby ...............................(1) 3
Eagle 20, 68
Wright 65

beats slip-up
Klukowski 52 Att: 1,007
COMMONWEALTH GAMES
ATHLETICS - Men, 100m: 1 L Clarke (Jam) 10.12; 2 M
Lewis-Francis (Eng) 10.20; 3 A Armstrong (Trin) 10.24. Shot:
1 D Armstrong (Can) 21.02; 2 D Scott (Jam) 20.19; 3 D
Stevenson (Aus) 19.99. Women, 100m: 1 O Oludamola (Nig)
11.32; 2 N Mayers (StV) 11.37; 3 K Endacott (Eng) 11.44.

to take silver
Hammer: 1 S Frizell (Can) 68.57; 2 C Parry (Eng) 64.93; 3 Z
Derham (Eng) 64.04.
CYCLING - Men, sprint: 1 S Perkins (Aus); 2 S Sunderland
(Aus); 3 S Webster (NZ). 4,000m team pursuit: 1 Australia
(J Bobridge, M Hepburn, C Meyer, D Parker) 3m 55.421s; 2
NZ overlapped; 3 N Ireland (S Downey, M Irvine, P Lavery, D
McCann) overlapped. Women, sprint: 1 A Meares (Aus); 2 B
James (Wal); 3 E Rosemond (Aus). Women, 10km scratch
race: 1 M Dunn (Aus); 2 J Kiesanowski (NZ); 3 A Blyth (Eng).
and add Commonwealth gold to her GYMNASTICS - Men, Floor: 1 T Pichler (Aus) 14.675; 2 R
▲

COMMONWEALTH GAMES
BY FRANK DALLERES
ENGLAND’S Mark Lewis-Francis con-
tinued his renaissance by claiming
Commonwealth silver in the 100m
after a gritty sprint in Delhi.
Lewis-Francis, who revitalised a
stagnant career with European
Championship silver in July, was ham-
pered by a slow start caused by his
blocks slipping backwards. But he
refused to give in and powered back
through the field, finishing second
only to Jamaica’s Lerone Clarke, who
clocked a time of 10.12 seconds.
“I would’ve won that,” said the 28-
year-old. “My blocks slipped, that’s
why it looks like I’m so far behind. I
had to run deep within just to get a
medal there. That’s my second silver
medal of the season and I’m over the
moon with it, but there’s just that lit-
tle bit of disappointment knowing
what could have been.”
Elsewhere at the Games yesterday,
star swimmer Rebecca Adlington
beat illness to win the 800m freestyle
DALLAGLIO’S LOOK AHEAD | LONDON CLUBS PREPARE FOR EUROPEAN KICK-OFF
LAWRENCE DALLAGLIO tells City AM
how he thinks London clubs will fare in
this weekend’s fixtures in the Heineken
Cup and Amlin Challenge Cup.
Olympic title.
Adlington is one of several on the
English team to fall ill amid sugges-
tions water in the practice pool could
be contaminated. Indian officials are
investigating.
The 21-year-old did not struggle
once the race was underway, howev-
er, making a superb start to lay the
foundations for comfortable victory.
“With everything that’s going on
here you don’t want to push yourself
too hard,” she said. “It’s all mental
pressure, and I put the most on
myself because I want it so badly. The
400m [today] will be a big ask.”
England’s men’s and women’s
compound archery teams both also
won gold, while Stevan Walton took
first place in the double trap individ-
ual shooting event.
Back in the pool, England’s Simon
Burnett took silver in the 100m
freestyle, as did team-mates Ellen
Gandy in the women’s 100m butter-
fly and Joe Roebuck in the 400m indi-
vidual medley.
CLERMONT AUVERGNE V SARACENS
(Heineken Cup, Saturday)
Saracens are a very tough, strong side
and they have done alright in Europe
in recent seasons, but Clermont is a
pretty difficult place to go and play.
My feeling is that if Saracens are
going to do anything in this group
then they are probably going to need
to win this match. It’s so important
to build up momentum.
LONDON IRISH V MUNSTER
(Heineken Cup, Saturday)
Munster have great pedigree in the
Heineken Cup, and have somehow
ended up with their last game at
home again, but if you’re London
Irish you’ve got to fancy yourself this
Lewis-Francis complained that his starting block slipped.
time. The Exiles are top of the
Premiership and at home, and if they
can’t beat them at their own place
then what chance do you have any-
way? I expect Irish to win.
TOULOUSE V WASPS
(Heineken Cup, Sunday)
Toulouse are the reigning champions
and they’re at home, so they will
start this game as big, big favourites.
Again both teams have pedigree in
this competition and between them
have won the Heineken Cup six
times. If Wasps were to lose this one
it wouldn’t be the end of the world,
but that’s not to say they won’t beat
Toulouse. Ultimately, if they get
something out of the game the
Beckford (Eng) 14.625; 3 A Kumar (Ind) 14.475. Pommel
horse: 1 P Sellathurai (Aus) 15.500; 2 M Whitlock (Eng)
15.125; 3 Thuang Chan (Sin) 14.200. Rings: 1 S Offord (Aus)
14.825; 2 L Folwell (Eng) 14.750; 3 I Georgallas (Cyp)
14.650. Women, Vault: 1 I Cairns (Eng) 13.725; 2 G May
(Can) 13.662; 3 K Klarenbach (Can) 13.637. Uneven bars: 1 L
Mitchell (Aus) 14.150; 2 G Bonora (Aus) 13.925; 3 C
Lemeiux-Guillemett (Can) 13.350.
SWIMMING - Men, 100m freestyle: 1 B Hayden (Can) 47.98;
2 S Burnett (Eng) 48.54; 3 E Sullivan (Aus) 48.69; 8 A
Brown (Eng) 49.82. 400m medley: 1 C Le Clos (SA) 4-13.25;
2 J Roebuck (Eng) 4-15.84; 3 R Schoeman (SA) 4-16.86.
Women, 800m freestyle: 1 R Adlington (Eng) 8-24.69; 2 W
Trott (SA) 8-26.96; 3 M Gorman (Aus) 8-32.37. 100m butter-
fly: 1 A Coutts (Australia) 57.53; 2 E Gandy (England) 58.06;
3 J Lowe (Wales) 58.42; 7 J Sylvester (England) 59.40.
RUGBY UNION
EUROPEAN CHALLENGE CUP POOL 3
Newcastle ....................................22 Bourgoin ..................................16
C’WEALTH GAMES | MEDALS TABLE POOL 4
Stade Francais ...........................57 Rugby Parma............................6
G S B Total
1 Australia 32 19 18 69 TODAY’S DIARY
2 India 14 11 9 34 (Football 7.45pm unless stated)
3 England 12 23 12 47 European Championship Qualifying Group A
4 Canada 11 2 11 24 Austria v Azerbaijan (7.30) ....................................................................................
5 South Africa 5 5 6 16 Germany v Turkey ......................................................................................................
Kazakhstan v Belgium (5pm) ................................................................................
Group B
Picture: PA Andorra v FYR Macedonia (6pm)........................................................................
Armenia v Slovakia (4pm) ......................................................................................
Rep of Ireland v Russia ............................................................................................
in association
with
Group C
Northern Ireland v Italy ..........................................................................................
Serbia v Estonia (7.30)..............................................................................................
group could go to the wire. Slovenia v Faroe Islands ..........................................................................................
Group D
Albania v Bosnia-Herzegovina (7.30)..................................................................
BAYONNE V HARLEQUINS Luxembourg v Belarus (7.15)..................................................................................
(Amlin Challenge Cup, Sunday) Group E
Bayonne have been a real surprise Hungary v San Marino (6pm) ................................................................................
package this season: they were Moldova v Holland (7.30) ........................................................................................
expected to struggle yet now sit near Group F
the top of the French league. The Georgia v Malta (6pm)..............................................................................................
Greece v Latvia ............................................................................................................
south of France is a pretty tough Group G
place to go and get a win and, Montenegro v Switzerland (7.30) ........................................................................
although they haven’t had a bad Wales v Bulgaria (7.30) ............................................................................................
start to the season, Quins have cer- Group H
tainly had more success at home Cyprus v Norway (7pm)............................................................................................
than on the road. Portugal v Denmark (8.45)......................................................................................
Group I
Czech Republic v Scotland (7.15)..........................................................................
Lawrence Dallaglio, is an ambassador for Spain v Lithuania (9pm) ..........................................................................................
Amlin, premium partner of the Heineken
Cup and title partner of the Amlin SPORTS EDITOR JON COUCH
Challenge Cup. email sport@cityam.com

I’m the new favourite, says in-form

Alonso as Spaniard eyes third title
his first world championship at the age of 34, as a result of collisions attributable in part to
▲

FORMULA ONE
BY FRANK DALLERES
FERRARI’S Fernando Alonso has declared
himself the new favourite to win a fiercely
contested world championship ahead of this
weekend’s Japanese Grand Prix.
Back-to-back wins in Italy and Singapore
have lifted Alonso into second in the drivers’
standings, just 11 points behind Red Bull’s
Mark Webber with four races left.
McLaren pair Lewis Hamilton and Jenson
Button, and Webber’s team-mate Sebastian
Vettel are also still in contention for the title,
but two-time former champion Alonso
believes he has the edge.
“If you see the last two races, then yes [I am
the favourite]. We need to keep the momen-
tum,” said the Spaniard.
Webber might appear to be on the cusp of
but the Australian insists the title battle is
wide open.
“I’m not the favourite,” he said. “I think
we’re all pretty even at the moment. It can all
change pretty quickly, in a good way and bad
way for me.
“It’s on a knife-edge but I’m very, very
relaxed. I will do my best and the other stuff
will take care of itself. There’s four races to go
and you need to lead the championship at
the end, not now.”
England’s Hamilton remains confident of
winning his second title, despite failing to
finish the last two races.
“This season I’ve seen how close it is still
after many people have had mistakes, it clear-
ly shows that it isn’t impossible for me,” he
said. “I still feel very optimistic.”
Hamilton’s last two retirements have come
his aggressive racing style.
“We’re always on the ragged edge. We’re
always trying to gain a position while staying
A re You A
safe,” he added. “It’s not easy. Racing is racing
and there are racing incidents, that’s to be
Single City Boy?
expected.
“I could just go and drive around and not
overtake anyone and just stay in position, Have you got what it takes to
that’s easy enough, but that’s not me so that
impress 30 single ladies?
definitely won’t be happening.”
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 Sport
36
Games chiefs
refuse to rule
out Spurs bid
for stadium
▲
LONDON OLYMPICS
BY FRANK DALLERES
OLYMPIC chiefs yesterday repeatedly
refused to rule out Tottenham’s bid
for the 2012 stadium despite the club
being unwilling to retain the run-
ning track.
The north London outfit are the
only bidders known to want to scrap
the facility if they move into the
80,000-seater arena in Stratford after
the Games.
Premier League rivals West Ham
have agreed to keep the track – a cen-
tral part of London’s promise to deliv-
er an athletics legacy – if they prove
successful.
But Andrew Altman, chief execu-
tive of the Olympic Park Legacy
Company, told City A.M.: “I guess you
could say we’re keeping our options
open. Let’s see what we have.”
Mayor of London Boris Johnson,
when asked directly, also rejected the
chance to categorically rule out bid-
ders who do not include the running
track.
“I don’t want to get into the detail
of the bids and how it’s all going to
work,” Johnson told City A.M. “There
are discussions to be had. But you’ve
got to be in conformity with the bid
and I’m sure that they will be.
Everybody at the moment is.”
Reminded that AEG, Tottenham’s
English sides ready for Euro
renaissance, says Dallaglio
▲
RUGBY UNION
BY FRANK DALLERES
ENGLAND legend Lawrence Dallaglio
has backed Premiership clubs to re-
establish themselves as a European
force this season.
Northampton Saints were the only
English side to reach the last eight of
the Heineken Cup last year in what
was a hugely disappointing campaign
for domestic teams. But as the
Premiership’s finest prepare to
engage with the cream of Europe
again this weekend in the Heineken
Cup and Amlin Challenge Cup,
partners in the bid, had this week
said they would not incorporate the
track, the Mayor added: “I’m not
going to discuss the details of any-
body’s bid but, as far as I understand
it, so far everybody is compliant.”
Johnson’s words hint that an ath-
letics legacy is not the deal-breaker it
has been made out to be.
OPLC chairman Margaret Ford,
who is responsible for choosing the
winning bidder, reiterated their com-
mitment to keeping the track at yes-
terday’s launch of post-2012 plans for
the Olympic Park, which is to be
renamed the Queen Elizabeth
Olympic Park after the Games.
“We’ve been crystal clear from the
start that one of our criteria was they
would have to tell us how they would
keep the Olympic promise,” she said.
“That hasn’t changed.” Johnson
added: “There has got to be athletics
somewhere in the mix and it’s got to
conform with the Olympic bid.”
However, when pressed, both Ford
and Johnson declined to say whether
retaining the track was “non-nego-
tiable”.
Tottenham insist their bid to move
into the Olympic Stadium is only a
contingency plan in case their pro-
posals to build a new ground next to
their current home, White Hart Lane,
collapse. OPLC hope to identify a pre-
ferred bidder by December.
Dallaglio is predicting a renaissance.
“It’s always disappointing when
English clubs don’t do well but overall
they are in credit in the Heineken
Cup. Leicester are two-time winners
and so are Wasps,” Dallaglio, an
ambassador for Amlin, told City A.M.
“I don’t think last season was a wor-
rying trend. French and Irish teams
were very strong and it’s not a bad
thing that teams like Ospreys made it
to the quarter-finals.
“Northampton look well placed
this year. I expect Leicester Tigers to
come through their group and I also
think Bath have a fantastic chance of
SILVER LINING FOR
LEWIS-FRANCIS
SPRINTER SHRUGS
OFF BLOCKS FAULT
IN DELHI: P35
Johnson declined to categorically rule out any bids that scrap the track. Picture: REUTERS
qualifying from their pool.
“Like football teams in the
Champions League, you need a little
bit of luck. But I certainly expect
English teams to be more competitive
than they were last season.”
Dallaglio, who captained Wasps to
Heineken Cup glory in 2007, stresses
the importance of performing well
enough in the pool stages to secure a
home draw in the quarter-finals. He
added: “I played in the European Cup
many times and both times I won it
we had our quarter-finals at home.
That makes a big difference.”
DALLAGLIO’S PREDICTIONS: P35
Injury dents Westwood’s
shot at world No1 spot
▲
GOLF
RYDER CUP hero Lee Westwood has
vowed to soldier on in the hope of
overtaking Tiger Woods as world No1,
despite suffering a recurrence of a
calf injury.
Westwood needed treatment after
shooting a two-under-par first round
at the Alfred Dunhill Links
Championship at St Andrews yester-
day. The injury, which kept Westwood
out for almost two months until last
weekend’s Ryder Cup, forced the
Englishman to consider abandoning
the tournament.
But with top spot in the rankings
up for grabs if he can secure a top-two
CITYA.M. 8 OCTOBER 2010
Hicks won’t
back down
in Liverpool
sale fight
▲
FOOTBALL
BY FRANK DALLERES
EMBATTLED Liverpool owners Tom
Hicks and George Gillett have fought
back in the bitter internal power
struggle over the club’s future owner-
ship.
Hicks insisted yesterday that
Liverpool’s board had not been enti-
tled to accept a £300m bid from New
England Sports Ventures, in defiance
of his and Gillett’s wishes, because
two of the directors had been sacked.
The saga is now set to be settled in
the High Court next week, when it
will be decided who has the right to
sell the Premier League outfit.
Liverpool chairman Martin
Broughton believes Hicks and Gillett
signed an agreement that he alone
could reconstitute the board and
identify a suitable buyer.
Hicks, however, argues that, min-
utes before Tuesday’s board meeting
conducted by conference call to dis-
cuss NESV’s bid, he had sacked man-
aging director Christian Purslow and
commercial director Ian Ayre, replac-
ing them with his son Mack and
employee Lori McCutcheon, who both
oppose the sale.
“There were no such undertakings
given to Broughton, the board has
been legally reconstituted, and the
new board does not approve of this
proposed transaction,” a spokesman
for Hicks said yesterday.
Hicks and Gillett have until the end
of next week to find a buyer suitable
to them or refinance their £237m bor-
rowings from Royal Bank of Scotland.
If the club is sold for £300m the
Americans would lose around £140m.
finish, and Westwood only four
points off the St Andrews leaders, he
decided to play on.
“It’s difficult because I’ve never
been injured before and don’t know
how careful I’ve got to be, but if it had
happened yesterday I would have
pulled out,” he said.
“Playing two weeks in a row was
probably too much in hindsight, I
should have gone back to rehab. I
don’t want to get back to where it
was. It improved a lot, but it’s still not
right. I can’t load my right side. I just
want to get off it as quickly as possi-
ble. I’ve got my compression and ice
machine with me and I’ll see the guys
in the [European] Tour physio unit.”