ESCAPE
THE CITY
Issue 1,300 Friday 14 January 2011
EUROPE IMPOSES
ITS MEN ON CITY
REGULATION
▲
BY ALISON LOCK
THREE virtually unknown men took
the most important jobs in European
financial regulation yesterday, caus-
ing consternation in the City.
In the latest snub to Britain’s sover-
eignty, the European Union appoint-
ed career policymakers from
Portugal, Italy and the Netherlands
as chairmen of its three “super-regu-
lators” covering the EU’s markets,
banks and insurers.
Disappointed City sources warned
the exclusion of British finance
experts from the regulators’ boards
could lead to punitive regulation
being imposed without consultation.
“The concern among people in
London is that not one of the board
of the European Banking Authority
(EBA) is British, despite France,
Germany and other states being rep-
resented,” said one industry source.
“Given that the UK is the pre-emi-
nent financial services centre in
Europe, it is strange that there is
nobody from here on the board.”
Tom Huertas, banking director at
the Financial Services Authority, has
been named as alternate EBA chair-
man to fill the role until the chair-
man officially starts work.
One lobbyist expressed frustration
at a “Franco-German stitch-up”.
“People will suspect that it is a sop
to smaller countries but it’s a bit of a
Labour retains Oldham in a blow for the coalition
POLITICS
▲
BY ALISON LOCK
LABOUR triumphed over the coali-
tion parties last night, retaining the
Oldham East and Saddleworth seat in
yesterday’s by-election.
FTSE 100 ▼ 6,023.88 -26.84 DOW ▼11,731.9 -23.54
BUSINESS WITH PERSONALITY
NAME: Steven Maijoor
CAPITAL MARKETS REGULATOR
Age: 46
Nationality: Dutch
Special subject: Theory of auditing
Franco-German stitch up and neither
Italy or Portugal are renowned for
their financial regulation,” he told
City A.M.
The overarching banking regulator
will be headed by Andrea Enria, head
of the Bank of Italy’s supervisory reg-
ulations team and a fierce advocate
of more centrally-controlled finan-
cial regulation.
The capital markets regulator, the
Paris-based European Securities and
Labour candidate Debbie Abrahams
held the seat with a several thousand
vote majority, ahead of Liberal
Democrat Elwyn Watkins in second
position, while Conservative candi-
date Kashif Ali trailed behind.
Voter turnout was 48.06 per cent.
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NAME: Gabriel Bernardino
INSURANCE AND OCCUPATIONAL
PENSIONS AUTHORITY REGULATOR
Age: 46
Nationality: Portuguese
Special subject: Portuguese
pensions
Markets Authority, will be led by
Steven Maijoor, who spent 22 years as
an economics professor at Maastricht
University but has never worked in
the private sector.
And Gabriel Bernardino, an archi-
tect of the stringent new Solvency II
capital requirements, and currently
a department head at Portuguese
regulator ISP, will head the European
Insurance and Occupational
Pensions Authority based in
The result in the largest constituen-
cy in Greater Manchester is seen as
punishment of the Lib Dems for their
role in the coalition government
alongside the Conservatives.
The victory keeps Labour in the
seat, which came up for election after
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WORLD’S LEADING
ALL - INCLUSIVE
RESORTS
NAME: Andrea Enria
BANKING REGULATOR
Age: 49
Nationality: Italian
Special subject: Pro-cyclicality of
capital regulation
Frankfurt.
The three “super-regulators”,
established on 1 January, will have
powers to agree rules binding on all
banks, exchanges, insurers, invest-
ment firms, hedge funds, credit rat-
ing agencies and mutual funds in the
27-country EU. Rob McIvor, a director
at the Association for Capital
Markets in Europe, said it was good
news that the appointments had
been announced so quickly.
sitting MP Phil Woolas was removed
from office for lying about his oppo-
nent Watkins in election material.
The constituency, with a left-leaning
electorate and concerns over the effect
of public sector cuts on jobs, should
have been an easy Lib Dem win.
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Santander
pulls out of
Merlin deal
▲
BANKING
BY JULIET SAMUEL
SANTANDER UK last night pulled out
of collective banking industry talks
with the government designed to
secure specific lending targets, instead
entering into direct negotiations with
the Treasury.
The industry initiative, known as
“Project Merlin”, centres around a
truce whereby banks will commit to
lend more to small and medium-sized
businesses in return for no further
crackdown on bonuses from the
Treasury.
But Santander UK, which is predom-
inantly a retail bank, has little to gain
from cutting a deal on bonuses, since
it does not award huge pay-outs to its
UK-based executives.
In a blow to Prime Minister David
Cameron’s plans for a “big society
bank”, funded from unclaimed bank
assets but topped up with a planned
£1bn contribution from each bank in
the talks, Santander is now unlikely to
make a direct contribution to its set
up. “Santander favours direct invest-
ment programmes – such as our work
with universities in the UK and
around the world – rather than aggre-
gated funds solutions,” said a source
close to Santander.
The bank’s withdrawal cuts the
number of participants in the talks
down to just four of Britain’s major
banks: HSBC, Barclays and semi-
nationalised banks RBS and Lloyds.
HSBC’s full participation is also
believed to be in doubt due to its
main focus being outside the UK.
But voter animosity against Nick
Clegg for leading the Lib Dems to
backtrack on key election pledges
such as tuition fees decimated the
party’s chance of a win. The loss will
add to pressure on Clegg to pacify the
party’s support base.
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 2 News
Why top footballers are paid so much
EDITOR’S LETTER
ALLISTER HEATH
CAPITALISM has delivered an extraor-
dinary amount for human civilisa-
tion, yet it is profoundly disliked. One
reason for this is that most people
don’t like or understand some of its
outcomes – especially why some pro-
fessions pay such vast amounts of
money, while others must make do on
much lower wages. Why are foot-
ballers paid so much – and why are
philosophers paid so little? How can
investment bankers be paid so much
more than coal miners? “That can’t be
right”, people argue – “it can’t be fair.”
While understandable, this reac-
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alex Ridley
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Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
BIG THREE JAPANESE CARMAKERS IN
GREEN PUSH
Japan’s three largest carmakers have
joined forces to promote the adop-
tion of hydrogen fuel cell vehicles,
with a plan to build 100 filling sta-
tions in Japan for the next-generation
“green” cars by 2015. Toyota, Honda
and Nissan will be joined by 10
Japanese natural-gas refiners and dis-
tributors.
STRONG FOURTH-QUARTER RESULTS
BOOST SAP
SAP reported record fourth-quarter
results that beat its own as well as
market expectations, pushing up
the shares of Europe’s biggest soft-
ware group by sales. The German
group’s operating margin rose to 39
per cent in the last three months of
the past year, higher than the 35.5
per cent reported in the fourth
quarter of 2009.
tion misses the point. If wages were
set centrally and arbitrarily by an
omniscient dictator, it might make
sense to describe his decisions as
“unfair” or “fair”. The trouble with
this kind of system is that whenever it
was tried during the twentieth centu-
ry it ended in poverty or genocide.
Fortunately, modern economies are
not controlled by dictators. Instead,
they largely rely on markets – imper-
sonal mechanisms which collate infor-
mation and allow scarce resources to
be allocated to reflect the tastes and
desires of society’s members. A market
outcome cannot therefore legitimate-
ly be described as “fair” or “unfair” – it
is merely a neutral price discovered by
aggregating individuals’ valuation of
a good, service or asset, accounting for
supply as well as demand. The fact
that people are prepared to pay more
for gold than for pebbles is neither
“fair” nor “unfair” – it’s just a fact.
The same is true of the salaries of
sportsmen, entertainers, chief execu-
tives or investment bankers. All earn
2010 a record
year for Intel
TECHNOLOGY
▲
BY ALISON LOCK
CHIPMAKER Intel smashed its previ-
ous sales and profit records in both
its 2010 results and its fourth-quarter
trading, it reported yesterday.
In its best-ever full-year results the
computer processor maker reported
net income of $11.7bn (£7.5bn), up
from $4.4bn in 2009.
It also reported fourth-quarter rev-
enues of $11.46bn. Analysts had
expected sales of $11.36bn. The firm
posted fourth-quarter net income of
$3.4bn.
The results confound expectations
that traditional computers are facing
growing pressure. PC sales are slowly
decreasing as items as the iPad steal
market share – but Intel’s processors
remain sought-after.
Intel’s shares rose 1.5 per cent to
US REGULATORS QUESTION GOOGLE’S
DEAL TO BUY ITA
The US government has stepped up
its investigation into Google’s pro-
posed acquisition of travel search
company ITA, potentially putting the
search company on a collision course
with regulators over a deal that
would make it a key player in the
online travel business. The
Department of Justice has accelerated
its requests for information from oth-
ers affected by the transaction.
STARBUCKS JOINS TATA FOR INDIA
FORAY
Starbucks is to enter India through an
alliance with Tata, the Indian con-
glomerate, that could see the US-
based coffee retailer open its first
branded coffee shop in the country
within six months. The two sides said
they had signed a memorandum of
understanding to explore retail
opportunities, after Starbucks signed
a sourcing and processing deal
with Tata Coffee.
lots of money because they convince
people to pay a lot for their services.
The value of top footballers’ services is
extremely high to their employers –
clubs fighting globally to make money
via ticket sales, TV, merchandising
and sponsorships. Competition push-
es up wages to incredible levels. Prices
and wages are a signalling device: they
tell people the extent of the demand
for a particular product or service.
We may regret the fact that philoso-
phers aren’t more valued and able to
make millions selling their services –
but that this is not the case is not
“unfair”, it just reflects the public’s
unfortunate lack of interest in what
they have to sell.
This is not to say that markets never
go wrong or make mistakes. They do
so all the time. Football clubs may pay
players so much that they end up
going bust; eventually, a realistic equi-
librium will have to emerge. Artificial
barriers to entry may be erected by
governments, limiting the supply of
people to a particular profession and
$21.61 in after-hours trading after
closing down 0.06 per cent at $21.29
on Nasdaq.
Last week, Intel unveiled its newest
personal computer microchip, code-
named Sandy Bridge and seen as a
major leap in processing power.
Chief executive Paul Otellini has
said computer manufacturers are
rapidly adopting them.
“2010 was the best year in Intel’s his-
tory. We believe that 2011 will be even
better,” said Otellini.
The chipmaker now has $16.7bn of
cash in the bank.
Intel chief executive
Paul Otellini said that
after a record year in
2010, the firm can do
better in 2011
ANTI-BRIBERY LAWS UNDER REVIEW
AFTER BACKLASH
The Government is to review Britain’s
strict new anti-bribery laws amid
fears that they could hamper the
competitiveness of UK businesses.
The Bribery Act, described by lawyers
as the toughest anti-corruption
regime in the world, is due to come
into force in April. Complaints about
the Act have escalated in recent
months.
PIPING ISRAELI GAS TO CYPRUS MAY
REDUCE THREAT OF ARMED ATTACK
Gas discovered off the coast of Israel
could be exported to Europe via
Cyprus in a move designed to reduce
the threat of armed attacks on the
project from neighbouring countries.
Israeli company Delek has applied to
the Government of Cyprus to build a
£500m LNG terminal at Vasilikos on
the island’s south coast.
artificially bidding up wages.
Shareholders may be incompetent or
lazy and allow bosses to pay them-
selves more than their true market
value. Central banks can print too
much money, which fools market par-
ticipants into thinking that they are
richer than they really are, bidding up
prices and triggering inflation and
asset bubbles.
Yet such issues can be rectified
through a combination of a more sen-
sible economic policy which doesn’t
introduce distortions into markets –
and by more competition. Cartels and
closed shops always enrich elites – in
the City or anywhere else.
The real problem is not that mar-
kets are enriching some people too
much – it is that decades of poor edu-
cational policies mean that too few
people have the right skills to compete
in the global economy. Rather than
fuelling class war, politicians would
be better off focusing on that.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
De La Rue boss Tim Cobbold is fighting off takeover interest from rival Oberthur
Oberthur funding in doubt
MANUFACTURING
▲
BY JULIET SAMUEL
DE La Rue’s share price has sunk 5.8
per cent to 787p since the start of the
week as doubts surface over Oberthur
Technologies’ ability to fund its 905p
bid, worth £896m.
Oberthur is in talks with several pri-
vate equity houses about its offer,
which it has until 7 February to
finalise due to a “put up or shut up”
order from the Takeover Panel.
The move to give away a stake in its
AUSTRALIA FLOODS: COAL PRICES
WILL RISE ALONG WITH THE WATER
LEVEL
London-listed mining groups remain
tight-lipped about the impact of the
Queensland floods on their opera-
tions, but they are probably right to
be cautious. There's a chance the situ-
ation could get much worse. “The one
thing that's certain is that everything
is still uncertain,” Rhys Kealley, lead
energy analyst at Datamonitor, said.
RGI SHAREHOLDER PETR SHURA SAYS
COMPANY OWES HIM $99M
Petr Shura, the shareholder accusing
RGI of being a "personal bank" for
management, is claiming the Aim-list-
ed Russian property company owes
him $99m (£64m). RGI International
was accused of bribery, nepotism and
financial malpractice by Mr Shura,
owner of 22.5pc of the company, in a
stock market statement in December.
CITYA.M. 14 JANUARY 2011
NEWS | IN BRIEF
KPMG to pay undergraduates
School-leavers could be paid upwards of
£20,000 a year while they study at uni-
versity, in a landmark scheme launched
by KPMG yesterday. The programme is
the latest attempt by Britain’s leading
accountancy firm to capitalise on anxi-
ety over rising university fees. High-
achieving school graduates who commit
to a six-year training contract will be
put through an accountancy degree at
the University of Durham Business
School and receive a professional prac-
tising qualification from the Institute of
Chartered Accountants in England and
Wales.
US attempts to curb speculators
Speculators may face curbs on dealing
in commodity markets after the US
futures regulator yesterday advanced a
plan to prevent the biggest traders from
taking market-distorting bets. The pro-
posal, passed 4-1 by the Commodity
Futures Trading Commission, would
attempt to curb positions investors can
hold in commodity markets, with the
aim of preventing large players from
controlling the market. Some lawmakers
say it would prevent a run-up in prices.
potential purchase suggests that
Oberthur might not be confident of
being able to take on the debt to buy
all the equity outright. “It means that
concerns about its abilities to raise
financing are probably well-placed,”
said a source close to De La Rue.
However, there is also said to be
interest from a range of non-private
equity investors who could fund the
deal. Oberthur now has a tight time-
line for getting its financing together.
The share price was also knocked by
a 14p interim dividend pay-out.
SEC PROBES BANKS, BUYOUT SHOPS
OVER DEALINGS WITH SOVEREIGN
FUNDS
The Securities and Exchange
Commission is investigating whether
banks and private-equity firms violat-
ed bribery laws in their dealings with
sovereign-wealth funds, according to
people familiar with the matter. The
SEC has sent letters of inquiry to
Citigroup as well as Blackstone
Group, the people said.
TOTAL IN TALKS TO SELL UK REFINERY
French oil major Total SA is currently
in discussions with a preferred bidder
to sell its U.K.-based refinery in
Lindsey, a person familiar with the
matter said Thursday. It is “hoped” a
deal will be reached between the two
parties by the end of the first quarter,
although it could be closed at a latter
date, the person said.
CITYA.M. 14 JANUARY 2011
Goldman loss
from crisis
was $13.5bn
▲
BANKING
BY ALISON LOCK
GOLDMAN Sachs’s losses from the
financial crisis were billions more
than many investors previously
thought, it has revealed, as it re-filed
its 2008 and 2009 results to make it
clearer how much it lost in the fall-
out.
The bank incurred a $13.5bn
(£8.6bn) loss from its investments and
lending in the year to the end of
November 2008 – far higher than the
$8.5bn it told investors at the time.
Sources close to the bank told City
A.M. that the higher figure had
always been present in statements at
the time but was harder to find in
previous reports. The billions of loss-
es would have been accessible only to
those who “went through the filings
and ran the models”, they said.
“The losses are more clearly dis-
closed today than they were before,”
the source added.
Goldman has not had an “investing
and lending” section, which covers
transactions using its own money, in
its profit and loss accounts until now.
The re-file has not changed any of the
bank’s results.
Goldman incurred a $5.95bn loss
on equity and a $6.33bn loss on debt
in 2008, helping to push the bank to a
$13.5bn loss on “investing and lend-
ing.”
Observers have praised the new dis-
closure by the bank, but have called
on the SEC to look into Goldman’s
previous filings.
The re-file is part of a new quest for
transparency at the secretive bank.
On Tuesday it published a 39-point
plan to disclose more of Goldman’s
interests in products and transactions
to investors and clients.
FAST FACTS | GOLDMAN SACHS
● Told investors and filed regulatory notices
admitting $8.5bn losses in 2008.
● Re-filed accounts show a $13.5bn loss from
its own investing and lending in 2008.
● Critics call for a further Goldman probe.
ECB President Jean-Claude Trichet’s stance has turned hawkish
Trichet hints at rate rise as
warns of threat of inflation
▲
EU ECONOMY
THE European Central Bank (ECB) is
poised to raise interest rates even
while the Eurozone is mired in a debt
crisis, it hinted yesterday as it left
rates on hold at their historic low of
one per cent.
In his strongest words to date on
the threat of surging inflation, ECB
president Jean-Claude Trichet warned
of “evidence of short-term upward
pressure on overall inflation”. He
added: “We are permanently alert.
Picture: Reuters
We are never-pre-committed not to
move interest rates.”
Trichet emphasised that the ECB
raised rates at the height of the finan-
cial crisis in July 2008, in a bid to
stress that the central bank was pre-
pared to raise rates even in uncertain
times.
Trichet’s comments come amid
ongoing concerns that without ultra-
low interest rates, Portugal, Spain,
Italy and Belgium could be forced to
join Ireland and Greece in needing an
EU bailout. ECONOMICS: P15
News 3
Ex-City analyst
fined £50,000
for careless IM
FINANCIAL SERVICES
▲
EX-CITY analyst Christopher Gower
was yesterday slapped with a £50,000
fine for making “misleading and inac-
curate” market disclosures” on pub
chain Enterprise Inns which saw the
shares surge.
Following a meeting with Punch
chief executive, Gower, then working
as a senior retail analyst for broker MF
Global, sent 14 clients, a Bloomberg
reporter as well as MF’s salesmen an
instant message (IM) implying he had
obtained inside information about the
company’s plans to convert to a real
estate investment trust (REIT).
Headlined “HOT OFF PRESS”,
Gower’s message said the shares would
“bounce”. The shares went up 4.5 per
cent following his note, and closed 30
per cent up after Enterprise Inns con-
firmed it would convert to a REIT.
The FSA accepted Gower’s impression
of imparting inside information was
unintentional, but said his message was
“careless” and “contributed to a large
increase in the volume of shares traded.”
Ex-MF Global analyst
Christopher Gower
was fined £50,000 for
a “misleading” instant
message to clients
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CITYA.M. 14 JANUARY 2011
Finance courses need rethink
FINANCIAL
LITERACY CAMPAIGN
BY ELIZABETH FOURNIER
CITY A.M.’s literacy campaign received
another boost yesterday as more feed-
back from readers added weight to the
cause.
Several key City firms have been
working to build strategies to support
entrepreneurs, young investors and
women in finance over the past five
years. But according to those with
inside knowledge of such schemes, the
ECB buys time
with strong
Spanish sale
EUROZONE CRISIS
▲
BY JULIET SAMUEL
THE euro rose to a three-week high
against the Swiss franc and regained
some of the ground lost to the dollar
after successful bond auctions in
Spain and Italy yesterday.
However, with strong suspicions
that the European Central Bank (ECB)
is buying up bonds to keep a lid on
yields, the relief is likely to be a mere
stop-gap until markets pass a verdict
on the package being put together for
February’s European Council meeting.
Officials have promised a “compre-
hensive” package to solve the
Eurozone’s debt crisis, with further
borrowing facilities expected to boost
the size of the region’s bailout funds.
The ECB is thought to be buying time
until this package is unveiled.
The signs were yesterday that the
bank’s actions have convinced bond
investors in the short-term. Spain sold
€5bn (£4.2m) of five-year debt, with
demand strong, but the country was
forced to pay nearly a one per cent pre-
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programmes are often targeted solely
at ultra-high-net-worth individuals
clients, and can be of inconsistent
quality.
Instead, the most useful schemes
are being run through individual ini-
tiatives, without adequate sponsor-
ship. Among these are the Financial
JAM sessions, which hire financial
advisers and experts to explain busi-
ness and finance concepts to members
of the scheme.
The platform is aimed solely at
women at the moment, but its
founders have ambitions to extend
mium compared to its last auction,
with yields at 4.5 per cent versus 3.6
per cent in the last sale. Italy also saw
strong demand for its €6bn sale of debt
but similarly had to pay a premium
compared to its previous sale.
Meanwhile, European leaders are
meeting behind the scenes in an
attempt to gain the initiative.
ECB president Jean-Claude Trichet
called, once again, for the Eurozone’s
bailout facilities to be boosted “quanti-
tatively and qualitatively”.
Germany and France are known to
be against bankrolling a further
expansion in the fund, but there were
signs that Germany’s position might
shift if chancellor Angela Merkel could
be convinced that the survival of the
currency union is at risk.
She said this week: “We support
whatever is needed to support the
euro, also with respect to the rescue
fund.”
Mike O’Rourke of brokerage BTIG
said: “It sounds as if the German chan-
cellor spent the holiday season with
Fed chairman Ben Bernanke.”
membership to other groups, and
eventually aim to make it available on
a mass-market scale.
Killik & Co, which runs Money in
▲
Mind, has also identified the hurdles
that need to be overcome to launch a
successful financial education strate-
gy. First, courses must be accessible to
all sectors of society. Second, they
must encourage even the most reluc-
tant to be interested in their financial
literacy.
And third, they should be practical-
ly taught, so that participants can use
their new found knowledge effectively.
CAMERON REJECTS EURO INTEGRATION
PRIME Minister David Cameron (left) said the UK will not fund a bailout of Portugal and
Spain. “We want a strong Eurozone . . . but we are not going to be drawn into fresh and
new mechanisms within the euro,” he said, even as French Prime Minister Francois Fillon
called on the UK to embrace integration. EU president Herman Van Rompuy (right) added
that market pricing of the debt of some EU countries was “absurd”.
S&P and Moody’s voice
concerns about US rating
POLITICS
RATINGS agencies Moody’s and
Standard & Poor’s warned yesterday
that the United States’ AAA credit rat-
ing could face a downgrade if its debt
ratio fails to right itself.
Sarah Carlson, a senior analyst at
Moody’s, said in a report “If [the US]
are not offsetting measures to reverse
the deterioration in negative funda-
mentals, the likelihood of a negative
Picture: REUTERS
LONDON BED COMPANY
News 5
outlook over the next two years will
increase”.
Meanwhile, S&P’s head of France,
Carol Sirou, said at a conference that
the agency couldn’t rule out chang-
ing its outlook on the US if the mar-
ket begins to turn on the dollar, given
its current fiscal problems.
Both however stressed that the US,
along with France, Germany and the
UK, have stable outlooks on the back
of their current debt arrangements.
Basel tightens
rules on bank
hybrid debt
REGULATION
▲
GLOBAL bank regulators yesterday laid
out rules to make clear holders of
hybrid bank debt will take losses if a
lender becomes insolvent, so that tax-
payers aren’t left to foot the bill.
One of the biggest controversies of
the financial crisis was how holders
of subordinated bank capital debt
escaped liability for bank failures
even when public funds were being
used to shore-up faltering institu-
tions.
“The Basel committee today issued
minimum requirements to ensure
that all classes of capital instruments
fully absorb losses at the point of non-
viability before taxpayers are exposed
to loss,” the committee said.
The global banking watchdogs’
rules were in line with last August’s
draft proposal. The committee will
publish a keenly awaited draft later
this year for dealing with a bank’s
bonds when capital levels move below
minimum requirements but the
lender’s problems are not yet termi-
nal.
“Tier 2 capital instruments [mainly
subordinated debt], and in some cases
Tier 1 instruments, did not absorb
losses incurred by certain ... banks
that would have failed had the public
sector not provided support,” the
committee added.
selfridges.com
 The Capitalist
6 CITYA.M. 14 JANUARY 2011
THE PAWN
KING SETS
HIS SIGHTS
ON THE CITY
WITH credit tight, the UK has witnessed a
significant increase in pawnbroking in
the past few years, with the number of
outlets increasing to 1,300 in the UK com-
pared to 2003 when there were just 800.
But pawnbroking is no longer the pre-
serve of the shabbier end of the High
Street.
One of the power brokers of the sector
and one of those looking to service the
upper end of the market is Paul Aitkens,
who tonight is the subject of a Channel 4
documentary entitled The Pawn King.
(7.30pm).
Aitkens, whose online company Borro is
based in the City’s Chancery Lane, keeps
his customers’ Ferraris, Porsches, and art
pieces such as a Banksy or a Picasso on his
premises, and tonight’s programme tells
the stories of five of his customers. They
range from the tale of the ex-wife of a mil-
lionaire to the story of a watch addict who
has 24 watches to his name.
Aitkens says he is trying to legitimise
pawnbroking through the use of top-rated
valuers from the auction houses and a
lending rate of around 4.5 per cent a
month.
He’s attracted the former founder of
Paul Aitkens surveys some of the cars (and a plane) that have been pawned
Egg to his board, Paul Gratton, as well as
the former Sportingbet boss Mark
Blandford.
He’s close to putting the final touches
to some money-raising of his own and
expects an IPO to be a possibility in two to
three years.
IMF GETS INTO WINE
ONE piece of IMF research particularly
caught The Capitalist’s eye this week,
appealing to her devoted interest in both
fine wine and commodities prices.
According to the study, “the statistical
behaviour of crude oil and fine wine
prices has shown remarkable similarity,
with a correlation of over 90 per cent dur-
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
Aitkens holds
his customers’
Ferraris and
art works
such as
Picasso and
Banksy in his
Chancery
rather unwisely called its study: A barrel
lane premises of oil or a bottle of wine? Investment
diversification aside, The Capitalist knows
what she’d prefer.
FUN IN THE MUD
IT’S time for fund managers to get down
and dirty in the mud with a football tour-
ing the sample period”. nament for the funds industry on 20
The formula used to calculate this January fast approaching.
would fly over The Capitalist’s head even Hosted by independent transaction net-
before a large glass of Chablis, but the work for the global mutual funds indus-
outcome seems to be that the factors try, Calastone, bopping the ball about on
driving wine and oil prices are the the City’s Powerleague pitches is all in a
same, disputing the fashionable good cause with the money raised being
conviction of the last few years in aid of charity Help for Heroes.
that wine offers a more stable A total of 23 companies, including the
investment. likes of JP Morgan, HSBC and Charles
Wine funds have, unsurprising- Stanley, have signed up so far for the five-
ly, been quick to dispute the a-side battle sure to display some of the
research, questioning why the IMF City’s finest footwork. But there’s room
was studying wine prices in the first for more. If you’re keen to show off your
place. headers and goal shooting skills, and help
And the recent listing of a wine fund on Calastone boost its current £7,000 to its
the Aim market implies investors are will- aimed for £10,000 email
ing to toe the vintners’ line. The IMF has charityshield@calastone.com.
 8 News
No replacement in sight for
Mecom as Montgomery quits
▲
MEDIA
BY DAVID HELLIER
EUROPEAN newspaper group Mecom
has said that its chief executive will
leave by the end of the month, but it
confessed yesterday that it’s no near-
er to finding a replacement for him.
The group is being forced by its two
leading shareholders to part compa-
ny with chief executive David
Montgomery but yesterday a source
close to the process said it was “not
really close” to appointing a succes-
sor.
Montgomery, who promised to
leave his post by the end of the
month last year, has been trying in
vain to cling on.
Yesterday, as the group reported a
rise in profit of 28 per cent,
Montgomery said: “Not only has
Mecom weathered the worst advertis-
ing recession in history but it has sig-
nificantly out-delivered on all its
financial commitments to sharehold-
CITYA.M. 14 JANUARY 2011
RMT SETS DLR STRIKE DATES
ers set at the time of the rights issue
in mid 2009.
“I am very proud of the dedication
and creativity of the staff who have
supported Mecom in recent years.”
Under Montgomery, Mecom shares
had plunged from a peak of 6,784p in
July 2007 to a low of 66p by November
2008, as the company piled on debt to
consolidate European assets, only to
have to dispose of some again when
the recession hit. It has plans to
resume dividend payments.
TRANSPORT union RMT yesterday announced 48 hours of strike action on the Docklands
Light Railway between 03.59 hours next Thursday 20 January 2011 and 03.58 hours on
Saturday 22 January 2011 in a dispute with Serco Docklands. RMT blamed a “break-
down” in industrial relations for the move. The planned strike comes after the govern-
ment warned it is considering a tightening of the trade union laws. PICTURE: REX
Capital boost
for Commerz
and will sell the shares to institutional
▲
BANKING
BY RICHARD PARTINGTON investors.
Basel III global regulations, which
STATE-BACKED German lender come into force from 2013, require
Commerzbank is selling a raft of new banks to hold higher levels of better
shares in a debt-for-equity swap, as it quality capital in order to shield them
looks to raise capital to meet incoming from potential financial meltdown.
regulations. Commerzbank’s new share issue
Germany’s second biggest bank yes- will increase the amount of core Tier 1
terday said it would sell around €640m capital it holds, despite it not having
(£538.3m) of shares to bring up the “any noticeable impact” on the bank’s
amount of capital it holds to meet Tier 1 capital ratio, a statement said.
Basel III regulations.
Commerzbank plans to sell around ANALYSIS l Commerzbank
6.8 €
118m shares, priced between €5.25-
€5.35 apiece, adding around €640m to 5.55
the €6.8bn the bank already holds in 6.4 13 Jan
capital.
In a complex transaction, Credit 6
Suisse and several other investment
banks will purchase Commerzbank
5.6
trust preferred securities, a form of
hybrid capital.
The Swiss bank is joined by 5.2
18 Oct 5 Nov 25 Nov 15 Dec 7 Jan
Citigroup, Goldman Sachs and UBS,
COMMERZBANK’S SHARE DEAL
Q. WHY DOES THE BANK NEED TO
IMPROVE ITS CAPITAL BASE?
characteristics of
debt and equity, mak-
Q&A
A. Global regulators are cracking
down on hybrid capital, so the
bank is shedding its hybrid capital in
ing it stronger than
pure debt. Interest payments can get
suspended during “bad” times, yet
favour of stronger equity-based capi- the stresses seen in the past few
tal. Under Basel III, banks will no years could prove too much.
longer be allowed to consider hybrid
capital as Tier 1 – the core funds that
the lender might need during a Q. HAS COMMERZBANK DONE
ENOUGH?
financial crisis.
A. Not yet. The bank has certainly
boosted its strength, although a
Q. WHAT’S WRONG WITH HYBRID
CAPITAL?
€640m increase is not huge for a big
lender. Its new Tier 1 capital ratio will
A. In short, it failed to act as an
adequate buffer during the
financial crisis. Hybrid capital has
be upped to around 10.25 per cent, up
from 9.89 per cent. There could be
further capital optimisation to come.
 10 News CITYA.M. 14 JANUARY 2011

Northern Foods still open to CAFFRAY RETURNS TO TIGER

other takeover bids says CEO

Herrick said the board would look at Herrick’s comments contrast with
▲

CONSUMER
BY MARION DAKERS alternatives. a letter from Northern that emerged
“If an offer came in we’d have to yesterday, which criticised its former
NORTHERN Foods reported in line consider it and price is going to be bank Rothschild for advising Boparan
Christmas trading yesterday, as its key. Our fiduciary duty as board on its takeover interest.
acting chief executive said the door members is to make sure we have Northern claimed that Rothschild
was open for tycoon Ranjit Boparan considered employees and other has confidential information that
to make a counter bid that could stakeholders as well but price will could help Boparan’s advances,
derail its merger plans. obviously be a key issue,” Herrick said which the bank denied.
Northern Foods is set to put its yesterday. Banking sources said such letters
£1.7bn merger with Irish food manu- Boparan has until 21 January to are commonplace in M&A when a
facturer Greencore to a shareholder make a firm offer, following a financial adviser switches sides, but
vote on 31 January, but Simon Takeover Panel ruling. are normally not made public.

NOW WITH AN GIL CAFFRAY yesterday returned to the Tiger Management fold, rejoining the hedge

ENTERTAINMENT PACKAGE fund where he was head trader for eight years until 2000. Caffray left to co-found
FrontPoint Partners, and remained chairman when it was bought by Morgan Stanley in
2006. He will join old boss Julian Robertson at Tiger, where he will take on the role of
chief investment officer.

WORTH £200.*
Ashtead joins
50 MP3s bid for rival
ued to rise, suggesting investors
▲

M&A
BY MARION DAKERS expect a higher bid. However, shares
in Lavendon closed 3.5 per cent down
INDUSTRIAL hire firm Ashtead joined at 111.25p yesterday, giving it a market

15 Movies
TVH in its pursuit of rival Lavendon cap of £187.7m.
yesterday, with the pair launching a Ashtead shares lost 2.2 per cent to
£185m bid to buy and break up the close at 166.3p.
firm. The Takeover Panel gave TVH a
Sex and the City 2 available now Under the latest indicative offer, deadline of 8 February to make a firm
from samsungmovies.com Ashtead would put up 47.5 per cent of bid earlier this week.
the cash price to acquire Lavendon’s Philip Sparks at Evolution
UK operations, with Belgium-based Securities said the approach “is set at
TVH taking the European and Middle a reasonable price and [we] see limited
Eastern parts of the business. prospects for a rival bid”.

7
Buy a new Samsung Lavendon said yesterday the 115p “TVH’s decision to team up with
Games Galaxy Tab right now
per share plan “is opportunistic and
significantly undervalues the compa-
Ashtead is a shrewd move – it reduces
the chance of a counter-bid and sends
ny” and its board unanimously reject- a message that the bidders can max-
and get £200 worth of ed the interest. imise synergies,” he said in an investor
music, movies, games TVH said it was interested in mak- note.
ing a £170m offer in November, which Lavendon commanded market cap
and books. It’s the Lavendon also rejected as undervalu- of almost £500m in 2008, but the
best all in one device ing the firm. slowdown in construction activity

5eBooks
Lavendon shares jumped from 79p
even on the go. to 103p at the time and have contin-
And at just 7 inches
it’s compact enough LIAM BEERE
to fit in your pocket.
UBS
Available at all major phone and electrical stores now
or visit www.samsung.com/uk/galaxytab UBS and RBS Hoare Govett are advis-
ing Ashtead during its pursuit of
Lavendon, with the UBS team led by
Peter Luck, managing director of cor-
porate broking.
Liam Beere, joint head of M&A in
*Terms and conditions apply. See samsung.com/uk/galaxytab for details © 2010 Samsung Electronics Co. Ltd. Google and Android are trademarks of Google, Inc. Sex and the City 2 © 2010 Warner Bros.
Europe, the Middle East and Africa, is
Entertainment Inc. and Home Box Office, Inc. All Rights Reserved. © 2009 Gameloft. All Rights Reserved. All manufacturers, cars, motorbikes, names, brands and associated imagery featured in Asphalt 5 mobile senior sponsor of the deal.
game are trademarks and/or copyrighted materials of their respective owners. © 2009 Gameloft. All rights reserved. Gameloft, the Gameloft logo are trademarks of Gameloft in the U.S. and/or other countries.
Beere joined the bank in 1992, hav-
ing qualified as an accountant at Price
during the recession caused its share
price to plummet.
Waterhouse (as it was called then). He
studied mathematics and economics
at Warwick University.
He advised Segro in its 2009
£110m takeover of Brixton, and has-
worked with Capital Shopping
Centres through its planned purchase
of the Trafford Centre and defence
against Simon Property’s £3bn
takeover advances. On the RBS side,
managing directors of corporate
broking Neil Collingridge and Sara
Hale lead the team.
Peel Hunt is advising TVH during its
takeover interest, with Julian Blunt
and Simon Brown leading the team.
Brown spent almost four years at the
now-defunct Landsbanki before join-
ing Peel Hunt in 2009.
12 News
How to value a failing social network
WHEN Rupert Murdoch bought
MySpace for $580m back in 2005, he
appeared to have got himself a bar-
gain. In 2007, analysts at RBC Capital
Markets said the site was worth $5bn,
which would have meant a stagger-
ing return on News Corp’s original
investment. Alas, what began so well
looks set to end with a whimper,
after News Corp execs confirmed
they are considering a sale of the
social network.
So how much is MySpace actually
worth? RBC’s 2007 valuation was
based on the fact that Murdoch had
cut a shrewd three-year advertising
deal with Google, which guaranteed
the social network $300m of rev-
enues a year. Google never recouped
its $900m outlay and, when the deal
was renewed last year, MySpace got
far less favourable terms. The pair are
now sharing revenues, which is bad
news for the social network.
The new arrangement is already
taking its toll. Last year, revenues at
MySpace fell sharply to $347m, says
eMarketer, from $470m a year earlier.
Compare that to Facebook, which
made $1.2bn in revenues in the first
nine months of 2010, and likely fin-
ished the year around the $2bn
mark. Facebook received a nominal
valuation of around $50bn after its
latest fundraising; applying the same
metric of 25 times revenues, that
would value MySpace at $8.7bn,
although such a price tag is ridicu-
lous: Facebook is in the ascendant
while MySpace’s star is burning out.
Analysts at Treffis reckon MySpace
constitutes about two per cent of
News Corp’s stock value, which puts
its equity value at around $1bn. We
think that is still far too high, but it’s
very hard to put a price on a sinking
ship.
BOTTOMLINE
Analysis by David Crow
Rupert Murdoch (l) bought MySpace in 2005 on the advice of son James Picture: REUTERS
News Corp to
consider sale
of MySpace
▲
INTERNET
BY HARRY BANKS
NEWS Corp is exploring strategic
options for its MySpace social net-
work, including a sale or a spinout,
the company said yesterday.
The news comes a day after the for-
mer social networking high-flyer
slashed nearly half of its staff.
News Corp, which paid $580m
(£366.3m) for MySpace in 2005,
believes a spinout would be the most
logical route, it is understood.
That option would likely entail
someone from the venture capital or
the private equity community invest-
ing in MySpace, thereby altering the
current ownership structure.
The company launched a new ver-
sion of the site in October centred on
music, movies and entertainment for
the 35-year-old-and-under crowd.
At an all-staff meeting yesterday,
MySpace chief executive Mike Jones
announced that parent company
News Corp was exploring strategic
options for the site.
A News Corp spokeswoman added:
“We are looking at a number of strate-
gic options for the business, includ-
ing a sale, merger or spinout.”
Competition Commission
called on bid for BSkyB
▲
MEDIA
MARKET regulator Ofcom has recom-
mended a full Competition
Commission enquiry into the approach
for British Sky Broadcasting by Rupert
Murdoch’s News Corp should take
place, according to reports.
The Department of Culture, Media
and Sport received the regulator’s
report on the impact on media plural-
ity the £7.5bn deal could have on the
31 December last year.
Yet the Whitehall department has
yet to publicly announce the find-
ings, or any action on the report,
CITYA.M. 14 JANUARY 2011
News Corp chief operating officer
Chase Carey said in November that
the company was exploring all
options for MySpace, including a sale,
and told investors that month that
MySpace had quarters rather than
years to turn itself around.
Once the top internet social net-
working site, MySpace has been
eclipsed in recent years by Facebook,
which now has more than 500m
users and was recently valued at
$50bn .
On Tuesday, MySpace announced
that it was laying off 47 per cent of its
staff, or about 500 employees.
Shrinking MySpace’s losses will be
key in attempts to shop it to would-be
buyers.
ANALYSIS l News Corp.
15.20 $
14.21
13 Jan
14.80
14.40
14.00
2010 8 Nov 29 Nov 20 Dec 10 Jan
however speculation yesterday sug-
gested culture secretary Jeremy Hunt
had passed the report to the
Competition Commission.
Media tycoon Rupert Murdoch had
bid to buy the shares in BSkyB that
News Corp does not already own, in a
deal that valued the broadcaster at
roughly £12bn.
Business secretary Vince Cable was
stripped of the power to adjudicate
on the News Corp takeover, after he
claimed to have “declared war” on
Murdoch in an undercover interview.
Culture secretary Jeremy Hunt was
handed the power to decide.
CITYA.M. 14 JANUARY 2011
Insurers agree to
stop sharing prices
INSURANCE
▲
BY HARRY BANKS
SEVEN insurance groups including
Aviva and Axa Insurance UK
agreed to stop sharing motor poli-
cy pricing data using an Experian
tool after the UK regulator said it
could limit competition.
The tool, Whatif? Private Motor,
allowed insurers to access the pric-
ing information supplied by com-
petitors to brokers, the Office of
Fair Trading (OFT) said in a state-
ment yesterday.
“Being able to view competitors’
pricing strategies could potentially
have led to the risk of price co-ordi-
The floods are preventing deliveries of aluminium
nation, putting upward pressure
on premiums,” said an OFT
spokesman.
The insurance groups said they
would address the OFT’s concerns
by ensuring pricing information
was anonymous, aggregated across
at least five insurers and already
“live” in broker sold policies.
OFT executive director Clive
Maxwell said the commitments
were a proportionate response to
its concerns.
”We used our discretion to limit
our investigation's scope in order
to reach a quick and effective out-
come,” Maxwell said.
“However, we are aware that
Picture: REUTERS
News 13
similar market analysis tools
exist both in motor and other
insurance markets and we urge
companies using them to ensure
that they are complying with com-
petition law.”
Insurers Ageas Insurance,
Liverpool Victoria Friendly Society,
RBS Insurance Group , Royal Sun
Alliance and Zurich Insurance also
committed to the proposals, as did
IT software and service providers
Experian and SSP.
The OFT is now likely to move
the focus of its investigations to
other forms of insurance, such as
home and contents cover, which
also use price comparison tools.
Rio Tinto says
Australian flood
is force majeure
MINING
▲
RIO Tinto yesterday said Queensland’s
flood crisis was preventing some deliv-
eries of aluminium from its giant
Boyne smelter.
Boyne Smelters, 59.4 per cent
owned by Rio Tinto Alcan, is
Australia’s largest aluminium smelter,
and is located near Gladstone in cen-
tral Queensland.
Rio issued a force majeure, a con-
tractual clause that gives companies
the ability to miss deliveries due to cir-
cumstances beyond their control.
“The floods have cut road and rail
access between Gladstone and
Brisbane and the Brisbane port is
closed, preventing deliveries to some
domestic and international cus-
tomers,”Rio said.
“Rio Tinto Alcan is investigating
alternative arrangements for cus-
tomers, including shipping alumini-
um directly out of the Gladstone port.
 14 Consumer News CITYA.M. 14 JANUARY 2011

Halfords hit as bike sales fall Booker lifted by surge in

sion overall were down 6.6 per cent reduced by the snow before
demand for fruit ‘n’ veg
▲

RETAIL
in the 13 weeks to 31 December. Christmas.
BY JOHN DUNNE UBS had predicted a four per cent Chief executive David Wild said:

HALFORDS issued a worse-than-
expected profit forecast yesterday as
poor sales of children’s bicycles over
Christmas hit the retailer.
Cycle sales fell 16 per cent on a like-
for-like basis as parents bought gadg-
ets and electronic games instead of
bikes.
The weakness in bicycles was in
contrast to strong car maintenance
sales which were up 12 per cent.
That was sparked by poor weather
meaning more cars breaking down.
Like-for-like sales in the retail divi-
fall while Citigroup had put the fig-
ure at five per cent.
Halfords said profits for the year to
April would be near the bottom of the
current range of City forecasts of
between £127m and £135m.
Demand for premium cycles under
the government’s Cycle to Work
scheme also dropped.
Halfords, which runs over 460
Halfords stores and the 240-site
Nationwide Autocentres car servicing
business, said it was disappointed
with its cycle sales which were
“People looked out of the window
and saw the snow and came to the
conclusion that their children would
not be able to ride their bikes imme-
diately.”
Wild added: “That’s why they tend-
ed to buy electronic goods that could
be used at home. But we were very
pleased with the performance of our
repairs centres.”
The retailer bought Nationwide
Autocentres in February last year for
£73m and is rebranding the business
under the Halfords banner.
▲
RETAIL
CASH and carry firm Booker saw
sales rise in its third quarter.
Like-for-like sales – excluding tobac-
co – grew by 5.5 per cent and fresh
fruit and vegetable sales soared by 54
per cent.
“It was a very unpredictable run up
to the end of the year for most cater-
ers, made even more so by the spo-
radic poor weather up and down the
country,” said Ron Hickey, sales direc-
tor for catering at Booker.
Nevertheless, the group managed
to increase both customer numbers
and average spend per customer in
the 16 weeks to 31 December, a rise it
attributes to improved choice, price
and service.
Booker supplies catering business-
es and 73,000 independent retailers
through its 172 cash and carry depots
and a nationwide delivery service.
Its two 2010 acquisitions Ritter-
Courivaud and Classic are perform-
ing in line with expectations, the
company said.

Home Retail
Tesco shares not as bad
drop on poor as forecast
Xmas figures

▲
RETAIL
SHARES in Home Retail Group
Sir Terry Leahy is set to retire in March Picture: NEWSCAST jumped more than six per cent yester-
day to hit their highest level since

weather: “We call it the way we see it,

ANALYST VIEWS: WILL TESCO BOUNCE BACK September, after the household goods
retailer said sales had fallen less than
▲

RETAIL
BY JOHN DUNNE and in the busiest shopping week of
the year, the country came to a stand-
FROM POOR CHRISTMAS SALES? Interviews by John Dunne analyst forecast.
Analysts issued a slightly higher
TESCO shares took a hit yesterday as it still.” profit forecast for the full-year
announced disappointing Christmas
sales figures.
New chief executive Philip Clarke
takes charge in March and will be
PHILIP DORGAN | ALTIUM SECURITIES between £250m and £275m, follow-
ing the more upbeat statement.

Like-for-like sales in the UK missed
forecasts, rising just 0.6 per cent in
the six weeks to 8 January.
The company blamed the poor
under pressure to stunt the progress
of Sainsbury’s which yesterday report-
ed its best ever Christmas sales fig-
ures. It also made much of the way it
“
Like-for-like sales at its Argos chain
were down 4.9 per cent in the 18
If we were to be critical, then we would say it has weeks to 1 January.
fallen short of how the market would have expected it to Meanwhile, sales at Homebase fell

weather on the performance with its
larger stores worst hit.
Tesco shares were one of the poor-
est performers on the FTSE 100, clos-
ing down 4.3 per cent at 405.6p.
In Sir Terry Leahy’s last sales state-
had dealt with the poor weather by
making its store more accessible than
other retailers with mass gritting of
car parks.
•Fashion chain New Look said the
snow had cost it a £15m hole in its
”
have performed from the time of its third-quarter announce- by a better-than-expected 1.2 per cent.
Chief executive Terry Duddy said
ment, whereas Sainsbury’s has actually done better. his staff had done a “heroic job”.
He added: “In the bad weather. We
haven’t made too much of it, but the
CLIVE BLACK | SHORE CAPITAL reality is that where it snowed, sales

ment as chief executive before he
retires in March, Tesco’s figures sug-
gested that although it is still by far
the biggest supermarket, it is losing
Christmas trade as it reported a sales
dive of 9.1 per cent in its third-quar-
ter. However, the firm said it held its
market share at 5.8 per cent.
“
were bad.”
He said sales at Argos had been
The good ship Tesco UK is certainly not broken, driven by iPad tablets and lap-top
being by far and away the most profitable retail business in computers, while toy sales were lifted

some market share to Sainsbury’s.
On non-food, Tesco said that the
weather had disrupted sales and so
sales were “subdued”.
Like-for-like sales in this area fell by
around 1.5 per cent and, unlike
”
these Isles with still industry leading margins. However, a by the strong performance of Lego.
ANALYSIS l Tesco Online sales accounted for 38 per
440 p new team may help it focus. cent of Argos sales up from 35 per
405.55
13 Jan cent for the same period last year.
430
NEIL SAUNDERS | VERDICT RESEARCH Altium Securities said in a note:
“We tend to the view that there is

Sainsbury’s, the retailer failed to
attract “one stop shoppers” who used
superstores to buy their presents as
well as food so they only had to ven-
“
long-term value in Home Retail, in
the shape of its large market shares
420
It would be unreasonable to discount the weather’s and multichannel platform, but
influence but this is only a part of the picture: other factors there are a growing list of failed

”
ture out once in the severe condi- are at work. Foremost among them is the expansion of retailers with large market shares, so
tions. Finance director Laurie 410 we think that the market will take a
McIlwee said of the impact of the 18 Oct 5 Nov 25 Nov 15 Dec 7 Jan rivals, eroding growth potential. little convincing.”

Dixons sees trade dented as the dire Game bullish for full-year
weather claims another retail victim despite fresh competition
£100m to £110m in 2011. years into a turnaround plan that has instead of buying pre-packaged titles.
▲

RETAIL
▲

BY HARRY BANKS
DIXONS Retail yesterday forecast full-
year profit around the bottom end of
market expectations after Christmas
sales were hit by December’s adverse
weather.
The company, which runs the
Currys and PC World chains in
Britain, UniEuro in Italy, Elkjop in
Nordic countries and Kotsovolos in
Greece, said it expected underlying
profit before tax in the range of
Dixons said sales at stores open
over a year fell two per cent in the 12
weeks to 8 January – its fiscal third
quarter. That compares with analyst
forecasts for a fall of two to nine per
cent, according to a Reuters poll, and
with a second-quarter fall of one per
cent.
“We remain cautious about the
economic outlook across our mar-
kets,” the firm said.
Dixons, which makes all its profit
in the second half, is two and a half
focused on selling underperforming
businesses, cutting costs, revamping
stores, opening larger stores and
improving product ranges and serv-
ice. The programme has generally
been well received by analysts, but
Dixons’ share price has fallen by 40
per cent over the last year.
Competition from US electricals giant
BestBuy – which has launched into
the UK market – has not helped.
Austerity measures have also seen
shoppers tightening their belts.
RETAIL
COMPUTER games retailer Game
Group posted 2.1 per cent lower like-
for-like sales over Christmas and said
annual profit would be within ana-
lysts expectations despite increasing
competition from downloads.
The company has been hit by an
absence of new console launches in
2010, increased competition from
supermarkets and changing gaming
habits, with people increasingly play-
ing mobile and social media games
Game, which trades from more
than 1,300 stores in Britain, Europe
and Australia, said its pre-tax profit
for the year to the end of January
would be between £37m and £39m.
It said it expected trading to remain
challenging in 2011, but it had hopes
that the launch of Nintendo’s new
handheld 3DS and an exciting line-up
of new games would boost the mar-
ket. Shares closed 15.7 per cent higher
at 172p yesterday as the market
expected weaker figures.
CITYA.M. 14 JANUARY 2011 Economics 15

UK industrial production rising

ANALYSIS l UK manufacturing's post-recession boom
10
Percentage
change
in output
%
5

final months of the year, the manu- mining and quarrying and utilities.
▲

UK ECONOMY
BY JULIAN HARRIS
BRITAIN’S ongoing manufacturing
resurgence was confirmed by govern-
ment figures, yesterday.
Output increased across nearly all
manufacturing sectors in November,
rising by 0.6 per cent on the previous
month, and by 5.6 per cent compared
to the same time in 2009.
The industry has grown for 13 con-
secutive months, according to the
underlying trend of three month
blocks, which the Office for National
Statistics (ONS) recommends.
“As suggested by survey data for the
facturing sector continues to grow
robustly,” commented Nida Ali of the
Ernst & Young Item Club.
He added: “December’s purchasing
managers’ index indicated another
rise in export orders and we expect
manufacturing to continue leading
the economic recovery this year.”
“The strong contribution from capi-
tal goods supports our view that
investment will continue to grow
steadily in the coming quarters,”
added Hetal Mehta of Daiwa Capital.
Overall industrial production rose
by 0.4 per cent in November, slowed
down by erratic components such as
In the three-month comparison,
provided to smooth out “volatile” 0
monthly data, production increased
at double the rate – by 0.8 per cent.
Industrial production accounts for
17.2 per cent of GDP. -5
The whole UK economy expanded
by half a per cent in the final three
months of the year, according to a
forecast released yesterday by the
-15
National Institute of Economic and
Social Research (NIESR).
“Unless output turns down again,
the recession is over,” the report said. Source: Haver Analytics, Barclays Capital
-15
However, the economy will not fully 2000 2002 2004 2006 2008 2010
recover until 2012, NIESR warned. Year

Rates held in
NEWS | IN BRIEF
US trade deficit in surprise fall
America’s trade deficit unexpectedly
narrowed to $38.3bn (£24.2bn) in

spite of price November, its lowest level since last

January, it was revealed yesterday.
Economists had expected a widening in
the deficit. However, the politically sen-
sitive deficit with China widened by half
a per cent. Meanwhile, the US producer

inflation fears BoE governor Mervyn King’s Bank has kept rates at record lows since March 2009

CITY VIEWS: ARE YOU WORRIED ABOUT INFLATION?

price index (PPI) rose above expecta-
tions. The inflation measure hit 1.1 per
cent in December. The weekly jobless
claims figures rose to 445,000,
although continuing claims fell.

Tough year ahead, warns CEBR

that fellow members of the commit- The UK economy grew by 1.8 per cent
▲

WORLD ECONOMY Interviews by Marion Dakers

BY JULIAN HARRIS
INTEREST rates were held for the UK
and the Eurozone yesterday, despite
rising inflation in both areas.
Historically low rates were main-
tained by the Bank of England (0.5 per
cent) and the European Central Bank
(ECB), which kept Euro area rates at
one per cent.
Inflation in the UK rose to 3.3 per
cent in November, and is forecast to
hit four per cent early this year – dou-
ble the Bank’s target rate.
Price increases for December are
due to be revealed by the Bank on
Tuesday next week.
In the Eurozone consumer price
index (CPI) inflation has risen to 2.2
per cent, surpassing the ECB’s target
of just below two per cent.
UK interest rates have been at 0.5
per cent since March 2009, yet there
are signs that the monetary policy
committee (MPC) may begin tighten-
ing soon.
Minutes for December’s meeting
revealed a more hawkish tone among
the committee. Andrew Sentance,
who has persistently called for a
small rise in rates, has been hopeful
tee will begin to join him endorsing a
0.25 per cent increase.
Towards the end of the month, on
26 January, the Bank will reveal if any
of the committee’s nine members
joined Sentance in voting for a hike.
Last month senior Bank official
Paul Fisher made headlines by reveal-
ing the MPC would like to normalise
rates to around five per cent,
although “the speed at which that
happens is another thing entirely,” he
said.
“What we need to do is to trigger
the mindset in people that that’s
where rates will eventually go back
to,” Fisher added.
“The MPC could decide that a small
near term interest rate hike would
support its credibility,” commented
IHS Global Insight’s Howard Archer.
And markets reacted yesterday to
comments by ECB president Jean-
Claude Trichet, who cited “short term
upward pressure on overall infla-
tion,” sparking concern that Euro
rates could rise in coming months.
The pan-European FTSEurofirst 300
index of top shares closed 0.6 per cent
lower at 1,157.34 points after jumping
1.5 per cent on Wednesday.
last year, yet growth will slow to 1.1 per
cent this year, according to a forecast
released today by the Centre for
HANS ULRICH KAESER | DEUTSCHE BANK Economic and Business Research
(CEBR). The CEBR revised down its pre-
“I am quite worried about inflation. Keeping the inter- dictions for 2011, which will be “the
toughest year of the economic cycle,” it
est rate low might just fuel it in the future. Interest said. “The good news is that after 2011
rates are a matter of strategy though, even if it we see growth returning, with GDP
growth by 2015 of nearly three per
does mean prices go up.” cent,” said report author Douglas
McWilliams.
NICK LYES | NATIONAL HOUSE BUILDING COUNCIL French price pressures increase
Inflation in France increased by half a
per cent in December, compared to the
“I am worried about prices going up, both via inflation previous month – above the expecta-
and VAT. The Bank has to start raising interest tions of economists. The rise took the
rates at a gradual pace soon, as the current sit- annual rate to two per cent, provoking
concerns over today’s Eurozone inflation
uation is storing up problems for the future.” figures. Yet French economy minister
Christine Lagarde said: “I am not very
worried,” despite some core elements of
ROBERT MARSHALL | SEA LTD the measure increasing alongside rising
energy prices.
“I’m not that concerned. The only price rise I have noticed Gloomy data for Japan recovery
is when I’m buying petrol, and that’s also down to tax. Japanese private sector machinery
orders, which reflect corporate capital
I don’t mind having a low interest rate right spending, fell by three per cent in
now.” November compared to October.

Wave of age discrimination cases looms after Nail fungus?

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▲

EMPLOYMENT
BY JULIAN HARRIS
EMPLOYMENT minister Ed Davey faced a
barrage of criticism from business groups
yesterday, as he announced that bosses will
no longer be able to force staff to retire at
65.
Employers face a “seismic shift” in the
law that could see unfair dismissal claims
“go through the roof,” according to a lead-
ing City law firm.
The Confederation of British Industry
(CBI) complained of the “timescale” of the
measures, arguing that reforms to unfair
alongside changes to retirement age rules.
“There is not enough time for businesses
to put in place new procedures,” said the
CBI’s John Cridland. “The outcome will be
more unpleasant and costly legal action.”
The maximum compensation for unfair
dismissal is £68,400 (from 1 February), yet
claims for discrimination have no ceiling.
An age discrimination claim can, like
some sex discrimination cases, total mil-
lions of pounds.
“Firms can implement their own stan-
dard age of retirement, which they might
have to justify in a court. Otherwise they
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CITYA.M. 14 JANUARY 2011
Russians rush to list in London
▲
MANUFACTURING
BY RICHARD PARTINGTON
RUSSIAN steel pipe maker ChelPipe
has become the third company from
the former Soviet Union to announce a
listing on the London Stock Exchange
this week.
The company, which is to launch an
initial public offering (IPO) of up to
$1bn (£635.2m), follows pump manu-
facturer HMS Hydraulic and coking
coal producer KOKS earlier this week.
The majority owner of the firm,
Russian billionaire Andrei Komarov, is
set to sell some of his stake as part of
the flotation.
FirstGroup on
track despite
£7m snow bill
▲
TRANSPORT
BY ELIZABETH FOURNIER
THE UK’s largest rail operator
FirstGroup said it was on track yes-
terday to hit its earnings and cash
targets for the year, with 2010
results in line with expectations.
The upbeat outlook comes
despite the company’s statement
that snow disruption to its UK bus
and rail networks made a £7m dent
in profits in December.
Both of FirstGroup’s UK opera-
tions saw like-for-like sales in pas-
senger revenue grow during the
third quarter, with UK Rail up 5.2
per cent and UK Bus rising by 2.1
per cent.
Though FirstGroup said it was
continuing measures to increase
efficiency and cut costs, profits on
bus services could be hit from April
this year when new guidance is
released on concessionary fare
reimbursement, and again next
year when the Bus Service
Operators’ Grant is cut by 20 per
cent.
The group’s US figures were not
so positive, knocked by Greyhound
coaches business posting a revenue
fall of 2.5 per cent. The company
Provident Financial pre-Christmas sales
help profits exceed market predictions
▲
FINANCIAL SERVICES
BY HARRY BANKS
DOORSTEP lender Provident
Financial said 2010 results would be
slightly ahead of market expecta-
tions after sales of loans strength-
ened further in the run up to
Christmas despite disruption caused
by heavy snow.
“The group had a strong finish to
2010 and expects to report results
slightly ahead of market expecta-
tions,” chief executive Peter Crook
The share list price and further
details of the IPO are expected in early
February, a source close to the deal
said.
Around 40 per cent of the company,
which is valued at more than $2bn, is
expected to be listed, according to the
source.
Known in full as Chelyabinsk Tube-
Rolling Plant, after one of its two main
production facilities in the Ural region
of Russia, ChelPipe was established in
1942.
It has a 15 per cent share of the
Russian steel pipe market and supplies
the oil and gas industry.
Vice chairman at Renaissance Asset
blamed the poor figures on the
effect of high unemployment on
consumer confidence.
FirstGroup’s US operations make
up 50 per cent of its business,
including First Transit, which pro-
vides transport and management
services to operators, and First
Student, which runs school bus
routes.
The school’s business has been hit
by cuts to US education budgets,
with First Student’s expected to
post a reduced passenger revenue at
year close. First Transit’s figures are
likely to be on target, said the com-
pany.
Shares in FirstGroup closed 0.22
per cent down at 399.9p yesterday
following the trading statement.
ANALYSIS l FirstGroup
420 p
399.90
13 Jan
400
380
360
18 Oct 5 Nov 25 Nov 15 Dec
said in a trading statement yester-
day.
The company, which specialises in
lending to people unable to borrow
from high street banks, said the aver-
age forecast of 18 analysts was for an
adjusted 2010 pretax profit of
£141.1m with predictions ranging
between £136m and £146.5m.
Provident, seeking to allay fears
over the impact of government
spending cuts and welfare reforms
on its business, said in November
that it had seen a pick up in home
Managers Ashar Qureshi said the deal
showed how companies from emerg-
ing markets were coming of age.
He said: “For most emerging market
issuers it is complicated listing in
London or in a mainstream exchange,
this is particularly true for companies
in the early stages of development. As
time progresses this is becoming less
and less of an issue.”
However, he said the flurry of
Russian listings did not mark a trend
for the country’s firms to list in the UK.
“It’s not indicative of a surge. Other
markets and listing venues, such as
Hong Kong, are growing in importance
as reference points,” he said.
BLOOMSBURY SALES ON TARGET FOR 2010
Strong order book and growing cash
positions put Balfour Beatty on target
▲
CONSTRUCTION
CONSTRUCTION firm Balfour Beatty
is on target to meet its 2010 perform-
ance targets, the company said in a
trading update yesterday.
Balfour said that both its cash
reserves and order book were in a
strong position, with average cash in
the second half of 2010 up to £400m
7 Jan from £342m the year before.
credit sales since September.
“This performance improved fur-
ther through the peak trading weeks
in the run up to Christmas, notwith-
standing the adverse weather condi-
tions,” the company said.
The lender also said its ability to
collect repayments on loans had
improved in the fourth quarter hav-
ing been stable in the first nine
months of the year while new cus-
tomer growth had moderated to one
per cent due to a focus on existing
customers.
Non-execs say regulation
is their biggest challenge
▲
COMPANIES
THE greatest challenge facing non-
executive directors is regulation,
according to a survey of more than a
hundred board members from FTSE
350 firms.
When polled on the most common
tests they face, the majority of non-
execs cited regulatory requirements as
both their biggest challenge and the
one that most hinders their role, with
a greater time-commitment required
as a result.
The company’s year-end results will
include figures from professional
services for the first time, following
its acquisition of infrastructure man-
agement firm Parsons Brinckerhoff
in October 2009. The new sector is
expected to exceed predictions
despite ongoing delays to projects
that are dependent on the reauthori-
sation of the Highways Bill in the US.
Despite “no discernable recovery”
NEWS | IN BRIEF
Weak profits for Korea’s POSCO
POSCO, the world’s number three steel-
maker, posted a weaker-than-expected
quarterly profit and warned it was
struggling to pass on rising costs as
floods in Australia disrupt raw material
supplies. South Korea’s POSCO is
already a laggard among Asian steel-
makers in terms of price increases,
share price performance and profitabili-
ty, and higher costs will deal it another
blow as it relies heavily on imports for
raw materials like iron ore and coal. The
company, which counts billionaire
investor Warren Buffett and Japan’s
Nippon Steel as major shareholders,
said its contract prices of both iron ore
and hard coking coal for the first quar-
ter rose 8 per cent from the previous
quarter.
News 17
The report, carried out by
PricewaterhouseCoopers, also showed
that non-execs are concerned about
matching shareholder expectations on
remuneration. Over half of respon-
dents said that shareholder commit-
tees were too concerned with
“box-ticking”, and that their expecta-
tions were overly shaped by the media.
Despite the negative responses, 63
per cent of non-execs polled said their
role was becoming more attractive,
and that fee levels were back at 2008
standards.
UK PUBLISHING
house Bloomsbury
has said that its
2010 trading fig-
ures are in line
with expectations.
Including US
sales, it said year-
end cash is likely
to total around
£34.2m.
The publisher has
been boosted this
year by strong
sales of Eat, Pray,
Love by Elizabeth
Gilbert, a film ver-
sion of which was
released in
September star-
ring Julia Roberts
and Javier Bardem
(pictured).
in weakened parts of the UK’s con-
struction industry, Balfour Beatty
said its construction services division
continued to perform well, citing
good operational performance and
tight cost control as contributing fac-
tors. Revenues were affected in the
support services sector, but the com-
pany was optimistic that new tenders
won would help a return to expected
numbers soon.
More cost saving for Hydro
Norwegian aluminium producer Norsk
Hydro said yesterday it had ramped up
its cost saving programme and saw
increased global demand this year,
while warning of technical delays at its
new smelting plant in Qatar. Shares in
Norsk Hydro fell 1.86 per cent as ana-
lysts expressed concern about a poten-
tial eight-week delay at the Qatalum
smelter and noted that Norsk Hydro’s
market growth estimate for the coming
year is lower than guidance from US
rival Alcoa. The firm said it saw alumini-
um demand growing about seven per
cent this year, adding it expected an
improved supply and demand balance.
It said demand for primary aluminium
increased by 19 per cent in 2010 in the
world outside China.
 18 News CITYA.M. 14 JANUARY 2011

Ferrovial returns to BAA talks NEWS | IN BRIEF

TNT sells mail units to PE fund
Dutch post and express firm TNT has
Caledon was aiming to raise £48m,
pitched at 90p a share, to repay £18m
sold its Belgian mail and Italian unad- of loans due.
Ferrovial owns 55.9 per cent of runways and dented passenger num- dressed mail units to their management
▲

AVIATION
BY HARRY BANKS
SPAIN’S Ferrovial is in talks with
investors to sell 10 per cent of UK air-
port operator BAA, which runs
London’s Heathrow, by June, its chief
executive said, in a move to halve a
€24.5bn (£20.5bn) debt pile.
Ferrovial will seek offers for the
stake, estimated last year to be worth
about €200m, in the last week of
January, with the aim of clinching a
deal in the first half.
“(Talks) are mainly with infrastruc-
ture funds, sovereign wealth funds
and big investors like pension funds,
mainly from the US and Britain,”
chief executive Inigo Meiras said.
BAA, the operator of airports includ-
ing Heathrow and Stansted. By drop-
ping its holding below 50 per cent,
the Spanish company will no longer
need to consolidate BAA debt on its
balance sheet.
It sold 10 per cent of its lucrative
Canadian 407 Express Toll Route to
the Canadian Pension Plan
Investment Board for C$894m
(£573m) last year and Meiras said it
wants to continue selling mature
infrastructure assets in 2011.
The BAA stake may prove trickier
to sell after BAA said this week it
expects to take a hit of around £24m
to account for the costs of last
month’s big freeze, which closed
bers in the week before Christmas.
“Bad weather is part of systemic
risk in the airport business and this
has obviously been factored into our
valuation of the stake,” Meiras said.
Virgin Atlantic has threatened to
take legal action against BAA over the
closure of Heathrow last month and
said it will withhold fees it pays to
BAA until a probe into the disruption
is complete.
Meiras said no airline had yet with-
held fees to BAA because of last
month’s closures.
The BAA sale plan dates back to
October of last year when the compa-
ny said it would go ahead some time
in 2011.
and Benelux private equity fund NPM
Capital. It has not disclosed the sale price
but analysts estimate proceeds would be
about one times sales for the Belgian
business, which excludes TNT’s Belgian
parcel operations, and substantially less
for the Italian activities.
Caledon confirms share placing
Australia’s Caledon Resources confirmed
it will propose a share placing, as the
Queensland-focused coking coal producer
scrambles to repay loans due by the end
of February. The company said yesterday
it had requested a trading halt on the
Australian Stock Exchange, pending an
announcement related to a proposed
placement. There was market talk that
TeliaSonera may buy Polkomtel
Nordic telecoms group TeliaSonera,
which has been seeking growth in
emerging markets, said it was interest-
ed in buying Poland’s biggest mobile
operator Polkomtel. Polkomtel has
made approaches to potential buyers,
launching what could be Europe’s
largest buy. Bankers have put a price
tag of around €4bn (£3.35bn) on
Polkomtel.
Correction
Yesterday, in an article, City A.M.
referred to Jim Pettigrew as chief oper-
ating officer of Ashmore. He in fact left
this role in October 2007. City A.M.
regrets the error.

Ashmore sees BEST OF THE BROKERS

ANALYSIS l Carphone Warehouse
450
p 400.00
13 Jan
ANALYSIS l Gartmore
130
p
ANALYSIS l Morrisons

295
p

assets rise as
102.00
14 Jan
115
285
264.60
13 Jan
350

100 275

funds flow in
265
250 85
18 Oct 5 Nov 25 Nov 15 Dec 7 Jan 18 Oct 5 Nov 25 Nov 15 Dec 7 Jan 18 Oct 16 Nov 6 Dec 24 Dec

CARPHONE WAREHOUSE GARTMORE MORRISONS

RBS rates the retailer “sell” with a target Numis Securities rates the fund manager Seymour Pierce rates the supermarket
price of 244p. The broker expects a decline “hold” with a target price of 101p. The bro- chain “hold” with a target price of 300p.
▲

FUND MANAGEMENT
BY RICHARD PARTINGTON
STRONG inflows have helped emerg-
ing markets fund manager Ashmore
grow its assets under management
(AUM) by 12 per cent to $46.7bn
(£29.4bn) in its second quarter.
The surprise increase comes after
investors flocked to join the fund,
contributing to net inflows hitting
$5.2bn, offsetting a $0.1bn drop in
EM funds changes, Ashmore could
suffer badly from a combination of
negative performance,” Numis said.
However the group said it was
“confident of its prospects for the cur-
rent year”.
Ashmore launched a range of
retail-targeted products in February
to broaden its revenue streams and
diversify its client base, which has
been dominated by institutions.
in like-for-like sales when the firm reports
its third quarter results on 18 January,
with only rapid growth in the US driving
the shares at the moment. Conditions will
remain tough, RBS believes, with economic
hardship in the UK and Spain hitting sales.
ker expects the firm’s takeover by The broker views Morrisons’ £28m pur-
Henderson to go through, due to a high chase of 16 Netto stores as a bold step,
level of commitment to the deal. Numis given the size of the shops, but does not
believes the takeover is only modestly value expect it to materially change its forecasts.
accretive for Henderson, but has raised its It expects shares to be driven by risk
target on that firm to 145p from 139p. appetite and economic factors.
To appear in Best of the Brokers email your research to notes@cityam.com

Worries for Indian IT on Infosys profits

AUM due to adverse investment per-
formance.
Analysts at Numis had estimated
AUM would hit around $4.2bn, just
one per cent up on its first quarter
position, but the asset manager saw
stronger than expected inflows.
It said performance fees are estimat-
ed to hit £60m for its half-year when it
updates the market towards the end
of next month. Ashmore’s shares
closed 4.7 per cent up at 358.5p.
ANALYSIS l Ashmore fall in nearly a year and a half. people will switch over from Infosys
▲

The increase was mainly from net p Infosys and its rivals Tata
inflows in high-margin, multi-strate-
380
gy products, as well as in its Asian
retail focused products, accounting
for the bulk of the new sales.
360
Yet analysts yesterday remained
cautious on the news due to
Ashmore’s emerging market (EM)
340
focus, in case investors took flight
from EM countries.
“If the current market vogue for
TECHNOLOGY
358.50
13 Jan INFOSYS Technologies sparked con-
cerns about the outlook for India’s
showpiece outsourcing sector after it
missed estimates for profit and
future sales growth and warned of
sluggish global economic growth.
Shares in India’s number two soft-
ware exporter, which boasts fatter
profit margins than its rivals, fell 4.2
18 Oct 5 Nov 25 Nov 15 Dec 7 Jan per cent and were set for their biggest
Consultancy and Wipro have been
on a hiring spree in recent quarters
and have given pay hikes of up to 20
per cent to keep staff, raising hopes
of a sharp pickup in outsourcing
demand.
“We are particularly disappointed
by Infosys’ revenue growth forecast
and if Tata Consultancy manages to
post better results than Infosys, then
because valuations for others look rel-
atively attractive,” said Taina
Erajuuri, Helsinki-based portfolio
manager at FIM India.
FIM India owns shares in Infosys
and Tata Consultancy in its portfolio.
Infosys, whose sprawling Indian
campuses house pizza and Subway
outlets and golf courses, was the first
to kick off results for the country’s
$60bn (£38bn) IT services sector.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

City of London Law Society
The membership organisation has appointed a
new chief executive: David Hobart. He is cur-
rently CEO of the Bar Council, in charge of rep-
resenting barrister members, and has been
heavily involved in changes to the law industry
since 2007. Before joining the Bar Council, he
had a long career in the RAF, from which he
retired in 2004 at the rank of air vice-marshall.
He studied law twice during his time at the
RAF, including a stint at Cambridge.
PricewaterhouseCoopers resources consulting practice. He spent
The financial services firm has appointed the last decade as group director of HR
Neil Roden as a partner in its human at RBS and has also worked at National
Australia Bank. His experience includes
involvement in numerous mergers and
acquisitions deals and downsizing.
Nardello & Co
The international investigations firm has
appointed four City figures to advise its
chief executive, Daniel Nardello.
Rupert Pennant-Rea, former deputy
governor of the Bank of England and
chair of Henderson Group and The
Economist Group, will join the board to
provide financial services expertise.
Charles Irby, former managing direc-
tor of ING Barings, will also provide
advice on financial services. Chris Jones,
former chairman and CEO of J Walter
Thompson, and, Charles Barker and Evie
Soames, directors at Liberty, will also be
joining the advisory board.
First Reserve Corporation
The private investment firm in the ener-
gy sector has promoted five profession-
als from its investment team and three
in its accounting team.
Jeffrey Quake has been named manag-
ing director, while Edward Bialas, Michael
France, Dod Wales and Neil Wizel have all
been appointed as directors.
In accounting, Chris Tracey has moved
up to assistant controller of the general
partner, Lucas Markelon to manager of
accounting of the infrastructure fund
and Scott Whittlesey to accounting
manager.
Signia Wealth
The wealth manager focused on ultra
high net worth clients has appointed
Carnegie Smyth as director of wealth
structuring. He joins the firm from
Deloitte, where he was in a similar line of
work.
Rosenblatt Solicitors
Hamilton Forrest has joined the firm as a
partner, having previously worked at
Fladgate, where he had been a partner
for two years. Before that, he spent ten
years at CMS Cameron McKenna.

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 Wealth Management 19

LONDON’S TOP 250

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 Group 331.50 1.25 340 250 Colt Telecom 140 2 140 109 John Wood Group 556.50 -15 581.50 293 RSA Insurance Grp 133.50 -0.50 136.50 114.75
3i Infrastructure 116.75 -2 125.25 101 Compass Group 560.50 -7 594 425 Johnson Matthey 2001 -44 2100 1446 SABMiller 2181 -27.50 2306 1650
A.B. Foods 1126 -5 1182 865.50 Cookson Group 654 4 687.50 367.50 Jupiter Fund Man 309 -0.50 314 180.25 Sage Group 285 2.75 289 222
Aberdeen Asset.Man. 218.75 1.25 219.75 112.75 Croda International 1620 -5 1625 751 Kazakhmys 1662 -9 1671 965 Sainsbury (J) 381.50 -0.50 395 313
Admiral Group 1569 44 1693 1114 CSR 412 -5 505 281 Kenmare Res. 31.50 -1.25 35 9.25 Schroders 1895 -27 1922 1116
Aegis Group 140 -0.50 145.50 103.50 Daily Mail & Gen 585 3 590 432.50 Kesa Electricals 154.50 -5.50 174 99.25 Schroders NV 1483 -25 1508 929.50
Afren 161.75 2.50 161.75 79 DAVIS SERVICE 443 4.25 443 360.25 Kingfisher 261.50 -0.25 267 198.50 Scot.& Sth. Energy 1213 -2 1258 1010
African Barrick Gold 585 -3.50 670 503 De La Rue 788 -17 1005 549.50 Ladbrokes 128.75 -0.50 162.75 122.75 Scottish Mortgage 709 -5.50 714.50 475
Aggreko 1518 4 1685 882 Debenhams 68.50 -1.75 79 53 Lancashire 570 -10 647 435 SEGRO 301.75 0.25 341.25 250.25
Alliance Trust 375.75 -2 378 293.50 Derwent London 1575 12 1605 1208 Land Securities 704 -3 707 545 Serco Group 555 -10 651 494.25
Amec 1193 -16 1226 733.50 Diageo 1224 12 1236 1000 Legal & General 110.25 1.25 110.25 69.75 Severn Trent 1419 -28 1499 1086
Amlin 380 -0.50 433 366.75 Dixons Retail 21.25 -2.50 36.75 21.25 Lloyds Banking Grp 68.50 0.75 77.50 46.50
Shaftesbury 457.50 5.50 460 349.25
Anglo American 3410 13.50 3410 2254 Domino’s Pizza 551 -8 586 309.25 Logica 134.50 0 148 101.75
Shire 1640 -6 1646 1220
Antofagasta 1539 -32 1634 761 Drax Group 389 9 437.75 326.25 London Stock Ex. 878.50 -13 906 544
Aquarius Platinum 363.25 16.50 458 227 DS Smith 226 2.25 226 104 Lonmin 1884 24 2113 1355 SIG 149.50 13.25 149.50 90.75
ARM Holdings 504 7.25 504 187 Dunelm 488 -0.25 550 325.25 Man Group 305.50 3 314.50 202 Smith & Nephew 684.50 4 712 537.50
Ashmore Group 358.50 16 383.75 218 easyJet 457.25 -3.50 496.50 348.50 Marks & Spencer 380 7.50 427.50 323.50 Smiths Group 1283 -2 1301 995.50
Ashtead Group 166.25 -3.75 177 77 Edin.Inv.Tst. 452.75 -7.75 467.25 364 Meggitt 377.75 -2.25 381 251.50 Soco International 349.50 0.75 484.25 292
AstraZeneca 2995 -19 3385 2732 Electrocomponents 265 -7 279.50 174.75 Melrose 325 -0.75 326.50 162 Spectris 1290 -4 1335 735
Autonomy 1559 9 1975 1271 Enquest 150.50 1 150.50 89.25 Mercantile Inv Tst 1113 -1 1114 828 Spirax-Sarco 1989 -36 2025 1240
Aveva Group 1673 38 1673 1007 Essar Energy 550 -6 589.50 383 Michael Page 507.50 -10 565.50 346.50 Spirent 143.25 -3.25 160.25 102.75
Aviva 429 7.75 429 294.25 Eurasian Nat Res 1110 -15 1266 818 Micro Focus 397.50 -0.75 546.50 276 Sports Direct 170.50 1 174.75 92.25
AZ Electronic Materials SA (WI)297.25 -2.75 310 249 Euromoney Inst. 696.50 -6.50 727 461 Millennium & Cop. 585 -5.50 594.50 368.50 St James’s Place 280 -1.25 292 204.25
Babcock International 573 -1.50 635 492.75 Experian Group 775.50 -5 819 572 Misys 334.50 1.75 343 201.50 Stagecoach Group 212.50 -2.50 224 160.75
BAE Systems 342.50 -3 388.75 294.75 Ferrexpo 442 15 442 197 Mitchells & Butlers 350 -2 361 265.50 Standard Chartered 1725 -19.50 1950 1351.75
Balfour Beatty 323.25 -3.75 327 229.75 FirstGroup 400 -1 412.50 336 Mitie Group 234.50 1 241 188.75 Standard Life 223.25 2.50 236 173
Barclays 306 3.50 383.25 255.25 For.&Col.Inv.Tst 314 -2 316.25 251.50 Mondi 528 7.50 557.50 338.25 Supergroup 1435 45 1638 535
Barratt Development 95.50 2.50 137.75 70 Fresnillo 1558 25 1682 669.50 Monks Inv.tst. 361.25 1.75 363 271 SVG Capital 236.50 12 236.50 125.25
BBA Aviation 225 -2 228 158 G4S 269 1 283.50 237.75 Morrison (Wm) 264.50 -5 306.25 257.50 TalkTalk 164.50 -0.75 168.25 108.50
Bellway 671.50 7.50 809 511 Genesis E.m.f. 551 -4 568 399 Murray Int.Tst 948 -3 966 736.50 Talvivaara Mining 598.50 1 620 342.50
Berkeley Grp Hldgs 943 1.50 949.50 742 GKN 225.25 -5.75 237 102 National Express 252.75 -3 259.50 195.50 Tate & Lyle 542 0 546 388.75
Betfair Group 925 0 1550 882 GlaxoSmithKline 1225.50 -3.50 1318.50 1095 National Grid 530 -9 596.25 484.25 Taylor Wimpey 33.25 0.25 44 22.25
BG Group 1319.50 -0.50 1337.50 984 Great Portland Est. 360.75 4.50 369.25 279 Next 2094 41 2344 1817 Telecity Group 430 -14 532.50 360
BHP Billiton 2522.50 -27.50 2616 1684.50 Greene King 466 -1.25 491.50 376.25 Northumbrian Water 321.50 -3.75 361.50 252.75 Templeton Emrg. 664.50 -8 689.50 471.50
BlackRock Mining 807.50 -7.50 815 492 Halfords Group 405 -15 550 372.75 Ocado Group 190 0 200 123.50 Tesco 405.50 -18.25 454.50 377.50
BlueCrest AllBlue 172 0 174.50 156.25 Halma 342.25 -4.50 366.50 223 Old Mutual 129.75 -1 145.25 97.25 Thomas Cook Group 199.50 -0.50 272 171.75
Booker Group 59.25 1 60.50 38.75 Hammerson 434.50 0 434.75 336.25 PartyGaming 214.75 2.50 334.50 205
Travis Perkins 1127 13 1127 664.50
BP 503.75 -0.25 655.50 303 Hargreaves Lansdown 557.50 -0.50 599 276.50 Pearson 1010 25.50 1051 855
Brit Insurance 1053 0 1053 728 Hays 126.75 -1.75 133.50 88.50 Pennon Group 644.50 -2 650 483 TUI Travel 262.50 -0.50 308.50 190
British Airways 299.50 -4 305 184.25 Henderson Group 151 0 151.75 112.75 Persimmon 436 4 507.50 336.50 Tullett Prebon 413.75 4.25 420.50 262
British Amer.Tob 2325 -86 2521 1959 Heritage Oil 463 -0.50 581 296.75 Petrofac 1637 -21 1685 876.50 Tullow Oil 1381 1 1381 991.50
British Empire Tst 501 -2.50 512 396.50 Hikma 875 -2.50 877.50 516 Petropavlovsk 1073 -8 1365 852 UK Commercial Prop 82 0 85 72.75
British Land 527 -5.50 537 418.25 Hiscox 390 6 399 326 Phoenix Group Hldgs 635.50 5.50 758 557.50 Ultra Electronics 1743 7 1895 1265
Britvic 462.50 -3 518 404.50 Hochschild Mining 560 -26 658 234 Premier Farnell 287.50 -2 304.50 174 Unilever 1897 -4 1997 1688
Brown (N.) Group 308 0.50 310.75 206.50 Home Retail Group 227 21 295 188.50 Premier Oil 2000 -22 2025 1017 United Utilities 564.50 -15.50 628.50 488.25
BSkyB 740.50 3 746.50 524.50 Homeserve 440.75 -0.50 487.50 326.25 Provident Financial 999.50 96.50 999.50 728.50 Utd Business Media 688 -0.50 712 409.75
BT Group 185.50 -2.75 190.75 110 HSBC Holdings 713 -2 719.50 596.25 Prudential 694 -3.50 697.50 487.50 Vedanta 2476 -38 2934 1839
Bunzl 768 -2 777 616.50 Hunting 800 19 801.50 439.50 PZ Cussons 402.25 0.50 409 234.75 Victrex 1458 -22 1522 806
Burberry Group 1080 -38 1156 581 ICAP 559 11 559 294 QinetiQ Group 136.25 1.50 163 96.75 Vodafone Group 172 1 176.75 129.50
C&W Comms 50 1 63.75 44.25 IG Group 526.50 3 553 362.50 Randgold Res 5130 -45 6655 4209 Weir Group 1755 -47 1861 735.50
C&W Worlwide 71.50 0.50 100 60.50 Imagination Tech 392 0.25 441.75 215 RDS ‘A’ 2130.50 -9.50 2162 1624 Wellstream Holdings 782.50 -2.50 793.50 436
Cairn Energy 454.75 5 493.25 318.25 IMI 949 38.50 949 530.50 RDS ‘B’ 2120 -14.50 2159.50 1554 Whitbread 1856 -28 1887 1266
Caledonia Inv. 1896 -9 1928 1512 Imperial Tobacco 1915 -26 2154 1753 Reckitt Benckiser 3425 -31 3655 3037 William Hill 172.25 -0.25 216.50 155.50
Capita Group 683 -4 826 635.50 Inchcape 382.25 1.50 391 237 Reed Elsevier 543.50 1 563 460.50 Witan Inv Trust 519.50 -2.50 522 410
Capital & Counties 145 -0.50 157 100 Informa 439.75 2 448 304.50 Regus 99.50 -0.25 120 66 WOLSELEY 2190 -4 2194 1223
Capital Shop Centre 377.25 -2 424.75 301 Inmarsat 654 -10.50 821 606.50 Renishaw 1304 -1 1342 565.50 WPP Group 774.50 -0.50 798 572.50
Carillion 379 -1 387.50 273 InterContinental Htl 1323 -3 1329 887 Rentokil Initial 98 -1 138.50 87.75 Xstrata 1513.50 -21.50 1535 845.75
Carnival 3120 -17 3153 2037 Intermediate Cap.Grp 355 -0.75 355.75 240.50 Resolution 252 9 332.75 211.25
Catlin Group 374.50 3.50 393 320 International Pers Fin 369.75 5.25 386.50 183.25 Rexam 345.75 -10.25 356 276.50
Centamin Egypt 166 -4 197 106.75 International Power 410 -3.25 448.50 284.50 Rightmove 774 -25.50 812 500.50 LONDON TOP 250 BY MARKET CAPITALISATION
Centrica 329.25 1.75 346 264 Intertek Group 1824 -13 2000 1150 Rio Tinto 4503.50 -39 4584 2812
Charter 828 8 853.50 567 Invensys 358.50 -4.25 364.25 230.25 RIT Capital Partners 1270 6 1270 971.50
POWERED BY
Chemring Group 3205 11 3663 2598 Investec 527.50 -6.50 562 417.75 Rolls-Royce Group 663.50 -1 665 473.50
Close Brothers 880 -5 888.50 664 ITV 74.50 1.75 74.50 48.25 Rotork 1817 -13 1895 1214 www.digitallook.com
COBHAM 224.50 -3.50 276 192.25 Jardine Lloyd 632 9.50 632 459 Royal Bank of Scot 42.75 1.50 58 31.25

Tesco trading update sends Commodities drag

investors running for cover on sluggish Wall St
to “neutral” from “buy”. Merrill Lynch upgraded it to “buy”. experimental drugs, to some patients.
THELONDON Utilities were also fallers as defen-
sively perceived stocks retreated, with
“We have clung on to the 6,000 level
but are making fairly heavy weather THENEW YORK Marathon Oil gained six per cent to
$42.98 after it said it would spin off

REPORT United Utilities down 2.7 per cent.

Miners lost ground, led by
Antofagasta down two per cent as
copper fell, the metal’s price pausing
of it, with two steps forward and one
step back,” said David Morrison, mar-
ket strategist at GFT Global.
“The eurozone debt problems have
REPORT its refinery and pipeline operations
into a stand-alone company.
JPMorgan fell 0.6 per cent to $44.45
ahead of its results, expected before

B U
RITAIN’S leading share index
fell yesterday as a disappointing
trading update from Tesco
upset food retailers and tobacco
stocks were hit by a broker’s down-
grade.
At the close, the FTSE 100 was
down 26.84 points, or 0.4 per cent, at
6,023.88, after hitting a 31-month
closing peak on Wednesday.
Tesco was the biggest FTSE 100 fall-
er, down 4.3 per cent after the world’s
third-biggest retailer missed
Christmas sales forecasts.
“Tesco’s figures are proof that big-
ger is not always best and while it has
managed to hold its share of the UK
grocery market ... further gains are
likely to be limited,” said Manoj
Ladwa, a senior trader at ETX Capital.
Weakness in tobacco was a big drag
on UK blue chips. Negative broker
comment hit both British American
Tobacco and Imperial Tobacco, down
3.6 and 1.3 per cent respectively after
BofA Merrill Lynch downgraded its
ratings for the two cigarette makers
after two days of gains, as investors
worried about demand waning in
China as the top metals consumer
approaches its New Year holiday.
And energy issues were led down
by Royal Dutch Shell, off 0.4 per cent,
with traders citing talk that the oil
major was guiding analysts lower on
its earnings outlook.
Part-nationalised lenders Royal
Bank of Scotland and Lloyds Banking
Group gained 3.5 per cent and 1.2 per
cent respectively as domestic banks
bounced back after investor fears over
eurozone sovereign debt subsided.
After Portugal’s debt auction on
Wednesday, Spain and Italy also suc-
cessfully sold a combined €9bn
(£7.5bn) worth of debt on yesterday,
underpinned by hopes that policy-
makers may soon shore up the
region’s fiscal defences.
Among other financials, insurers
also saw support with Resolution
standing out, ahead 3.7 per cent.
Engineer IMI was the top blue-chip
performer, up 4.2 per cent after BofA
eased but not gone away, we've got
the earnings season to negotiate, and
there is some big economic data from
the US to come,” he added.
On the domestic economic front,
British industrial output grew at its
slowest annual pace in four months
in November, dragged down by weak-
ness in the oil and gas sector.
The Bank of England kept its key
interest rate at a record low 0.5 per
cent as expected for the 22nd consec-
utive month after the latest mone-
tary policy committee meeting.
ANALYSIS l FTSE 6,023.88
13 Jan
6,100
5,900
5,700
18 Oct 5 Nov 25 Nov 15 Dec
S stocks edged lower yesterday,
hurt by a slide in drugmaker
Merck and as falling commodi-
ties prices hit shares of natural
resource companies.
The S&P 500, however, held near 28-
month highs as investors saw stocks’
upward trend continuing, focusing
on expectations for strong earnings.
Intel confirmed those bets as it
posted better-than-expected quarterly
earnings and forecast strong revenue
for the coming quarter after the clos-
ing bell. Its shares rose 2.7 per cent to
$21.87 following an 0.06 per cent dip
during regular trading hours.
Copper prices fell from recent
highs during the session on concerns
over slowing demand from China.
Freeport McMoRan Copper & Gold
lost 3.1 per cent to $118.07, and the
S&P materials sector fell 0.8 per cent.
Merck dropped 6.6 per cent to
$34.69, accounting for more than half
the losses in the Dow industrials,
after it stopped giving a blood clot
7 Jan preventer, one of its most important
the market’s open. Its shares have
risen 4.8 per cent so far this year.
Weekly initial jobless claims
jumped to their highest level since
October last week, although a surge
in exports to their highest level in two
years helped narrow the US trade
deficit in November, an encouraging
sign for the current earnings season.
Recent worries about the credit cri-
sis in Europe eased yesterday as Spain
and Italy followed Portugal with suc-
cessful debt sales. The euro rose 1.7
per cent against the US dollar, its best
day in six months.
The S&P 500 has gained 22.3 per
cent since the start of September.
Earnings from S&P 500 companies are
expected to rise 32 per cent in the
fourth quarter compared to a year ago.
The Dow Jones industrial average
fell 23.54 points, or 0.20 per cent, to
11,731.90. The Standard & Poor’s 500
Index dropped 2.20 points, or 0.17 per
cent, to 1,283.76. The Nasdaq
Composite Index dipped 2.04 points,
or 0.07 per cent, to 2,735.29.
 Business Features | Entrepreneurs
20
I LEARNT MORE
FROM FAILURE
THAN SUCCESS
TONY GOODWIN
AUTHOR AND FOUNDER OF ANTAL
INTERNATIONAL
I Donata Huggins the
BUILT a recruitment organisation which
spanned Europe and then nearly lost the
whole thing when the market turned down
post 9/11. And the fact that it’s now back
on its feet again, with offices in 30 countries, is
because I learned a lot more from getting
things wrong than I ever did from getting them
right.
If you’ve spent more than a few minutes in
an airport book-store lately, you’ll be all too
aware how many books there are in the market
written by entrepreneurs and corporate CEOs
keen to give you the story behind their dazzling
success. But in the real world, hubris can turn
to nemesis very easily – as I’m only too aware.
This was the start point of the book How
they Blew It which I co-wrote last year with
business journalist Jamie Oliver. The book looks
at sixteen examples of how over-confidence
and downright stupidity brought down a suc-
cession of high flyers such as Bernie Ebbers,
Dick Fuld and our very own Mark Goldberg. So
what lessons can be learned from these former
members of the “great and good” club?
1) Believe in the miracle of the mundane
Most very successful businesses are built on
simple ideas and processes. But once that suc-
cess reaches a certain level, it’s often tempting
for their creators and managers to lose sight of
simplicity, because it’s just not exciting enough.
This in turn can create a “bunker mentality”
where the people running a business lose touch
with the front line and start believing they can
get away with anything. Just look at the mad-
ness going on within Lehman Brothers, Enron
or Worldcom before the bailiffs came knocking
for jaw-dropping examples of where this can
lead.
2) Remember the basics
Losing touch with the basics can also prompt
highly successful entrepreneurs to abandon the
key business skills that got them to the top in
the first place, as if they were somehow no
longer needed when the bank account hit a
particular figure. Mark Goldberg built a highly
profitable recruitment business and a £40m
fortune and then decided to achieve his boy-
hood dream of owning a football team. But
instead of applying sound negotiation princi-
ples to his new venture he simply asked Ron
Noades, the chairman of Crystal Palace, how
much he would like for it and then stumped up
over £22m for the club without any of the key
assets such as the stadium it played in. The
result? Bankruptcy within two years.
3) Take your own advice
If you’ve built a profitable company then the
chances are that you know what you are doing.
So why stop taking your own advice? Property
dealer Peter Klimt once told an interviewer,
“You have to create an infrastructure. Without
that what you’re doing is just a series of deals,
a sequence of events, not creating a business.”
He then promptly failed to build that infra-
structure and his company collapsed. And
finally...
4) Don’t believe your own PR
When a Roman general returned in triumph a
slave rode in their chariot reminding them they
were only human. Perhaps every entrepreneur
needs a similar voice or reason today.
Tony Goodwin is CEO of recruitment special-
ist, Antal international, and co-author of How
They Blew It published by Kogan Page.
CITYA.M. 14 JANUARY 2011
How a fit blonde girl
sparked a £200k idea
Rich Martell tells
story behind his
controversial website
O
H MY God, have you seen that gor-
geous guy in the library? The one
that’s always on the third floor, you
must have seen him.” Sounds famil-
iar, doesn’t it? If not, it’s probably because
you weren’t at university recently and have
forgotten the bizarre methods of procrasti-
nation students devise to keep them from
their books.
But this sort of admiration from afar
took off in a big way at universities last
year, encouraged in no small part by a new
technology that swept across campuses
called Fitfinder. It was a website that
allowed users to anonymously post flirty
messages and descriptions of “fit” people
they have seen in the library, using geo-
location technology to map the “hotties”
on site. For students last year, it was a phe-
nomenon of near-Facebook proportions.
The founder Rich Martell, a computer
science student at University College
London (UCL), came up with the idea
because he wanted to find out the name of
a particularly good-looking blonde woman
he kept seeing in the library. Martell
explains: “It’s kind of like Valentine’s cards;
not everyone wants to give their name to
the person they fancy straightaway.”
“I created the site as a joke between my
friends, but the next day, I went into the
library and I could see people I’d never met
before with it up on their computer
screens. All of a sudden it was everywhere.
The internet service provider contacted me
to find out why there was so much traffic
coming to the site.” Not surprising when in
a matter of weeks it spread to 52 universi- 21 years old and already the CEO of his own company
ties with 25,000 people logging on.
But Martell soon became mired in con- tracked down Martell, and alongside heavy- fees and falling in love. And you never
troversy. The UCL authorities stepped in weight US investor, Kevin Wall, offered know, maybe one day, he’ll find out who
and forced him to shut it down. “I was Martell a £200,000 investment in Fitfinder. the fit blonde lady was.
given a £300 fine for bringing the Richard explains that the idea had
university into disrepute. The underwear “delivered something special: proof. This is
bomber from UCL didn’t even get that an incredibly uncommon thing. Rich had CV | RICH MARTELL, FLOXX.COM
charge – well I suppose he got bigger proved market demand before the business
charges – but you know what I mean.” even started.” After a bit of re-branding and Investment raised: £200, 000
Under the threat of having his degree the creation of an iPhone app, the site was Job title: CEO of Floxx.com
withheld, Martell took the site down two soft-launched this week as Floxx.com. Day
days before his finals. He had a job lined up one attracted 6,000 users. Age: 21
in the City as an equities trader, so he imag- “The plan is to get people using it every- Born: Stevenage, Hertfordshire
ined that both the fun of Fitfinder and his where,” Martell says, “not just in universi- Studied: Computer Science at University
student days had come to an end. ties. We’re launching worldwide – that’s College London
But the news reached Doug Richard, for-
mer Dragon’s Den investor, who was
part of the reason we changed the name;
“Fit” doesn’t mean good-looking in
Motto: “Winning is everything”
First ambition: To be an F1 race engineer
shocked that no one had invested in the America.” Talents: The ability to recite the entire pro-
idea since it had already proved itself an Martell says he hopes that Floxx will get logue of Romeo and Juliet
enormous success. Using Twitter, Richard complete strangers sharing two-for-one cof-
NEWS | IN BRIEF
MEET THE EXPERT ON CRISIS MANAGEMENT GROWING CONFIDENCE IN UK ECONOMY ENTREPRENEUR OF THE YEAR 2011
Tim Weller, founder and CEO of the business-to- The Investec entrepreneur confidence index that This year’s Ernst & Young’s entrepreneur of the
business service provider Incisive Media will be tracks the confidence levels of entrepreneurs in year award is now open for nominations. The
speaking to an audience of entrepreneurs about
how he dealt with the fallout from the banking
the UK economy has seen a small rise of 2 per
cent since June. Some 56 per cent of the entre-
award starts at a regional level. Regional win-
ners then progress to the UK finals, and the
crisis over a relaxed lunch. This event is hosted preneurs interviewed believe that the economy overall UK winner then goes on to compete for
by Entrepreneurs World, a peer-to-peer collabo- will improve over the next 12 months. Ed Cottrell the title of world entrepreneur of the year in
ration group for entrepreneurs running business- of Investec said: “The overall findings from our Monte Carlo. Richard Harpin, the founder of
es that have a turnover greater than £1m per index are positive, and show a growing level of HomeServe, is looking for entrepreneurs who
year. The event will take place on 20 January confidence in the UK economy from some of our have built and grown their businesses in the
between 12.30pm-3.30pm at 55 Old Broad leading entrepreneurs. However, there are still a face of adversity. To enter visit www.eoy.co.uk
Street, EC2M. To register visit www.entrepre- few issues that need to be addressed if they are or phone 0845 604 1012. The closing date for
neursworld.biz to receive the level of support they need.” entries is Friday 4 March 2011.
Lifestyle GOOD LIVING 21
IN ABU DHABI
| Film & Fashion IN MONDAY’S
TRAVEL SECTION

This hornet has a comic sting

Goofball humour and ALSO OUT THIS
punchy action ensure WEEKEND
fun superhero antics TIMOTHY BARBER

Film
THE GREEN HORNET
Cert: 12A
hhhii
SETH Rogen is both writer and star of the
latest film to play fast and loose with the
superhero genre. He plays Britt Reid, a rich
layabout who becomes a masked crime
fighter principally because it amuses him –
and it amuses us too. Rogen manages to
weave the mischievous humour of his
other comedies like Superbad into a film
that shares the punch of the Iron Man
films and the disrespect for superhero con-
ventions of Kick Ass. The story’s a crock, but
that didn’t bother me for a moment.
After his nasty newspaper magnate dad
(Tom Wilkinson) kicks the bucket, party-
loving Britt finds himself sole proprietor of
a media empire in which he has no interest.
He also discovers his dad’s mechanic, a
Chinese chap called Kato (scene-stealing Jay
Chou), happens to be a genius inventor of
weapons and gizmos, and a champion mar-
tial artist, and together they take on the Los
Angeles criminal underworld.
Thanks to Rogen’s goofy humour and
the kinetic direction of Michel Gondry
(Eternal Sunshine) it’s all a lot more fun
than it has any right to be.
Timothy Barber
BLUE VALENTINE
Cert: 15
hhhii
DO NOT be fooled by the posters. Blue
Valentine is not a sweet, if edgy, love story.
Sure, it’s about love, but it’s about the
jagged death of love. Its stars, the talented,
tasty man-of-the-moment Ryan Gosling
and the formidable ex-Dawson’s Creeker
Michelle Williams, form a perfect dark cen-
tre for a claustrophobic, unsettling picture.
It opens with a typical morning at the
home of Dean (Gosling) and Cindy
(Williams). Dean’s asleep in his chair with a
can of beer, Cindy is alone in bed. Their lit-
tle daughter Frankie (played with other-
worldly poise by the six-year-old Faith
Wladyka), who adores Dean and vice versa,
is playing outside.
Over the next 24 hours, Dean and
Cindy’s marriage – already tense (why is
Cindy alone in bed? Why does Dean berate
her for preparing Frankie’s oatmeal with
water?) – reaches breaking point. A twist
revealed half way through adds complexity
and a further sense of tragedy to their mar-
riage.
The narrative is laced with flashbacks of
their lives before they met and their
courtship – including a scene at dinner
when Cindy, a student, cowers before a
family row and vows never to hate the per-
son she once loved.
Meanwhile, Dean – before his perma-
nent cigarette, can of beer and shaded
glasses – oozed boyish sweetness.
Well worth seeing for the quality of its
performances and a strong feeling – albeit
a troubled one – that will stay with you
long afterwards.
Zoe Strimpel
FILM
CONVICTION Worthy legal drama with Hilary
Swank on another Oscar push as a woman who
learned the law to defend her brother.
NEDS Scottish actor and director Peter
Above, Jay Chou and Mullan returns after years away with this tale
Seth Rogen in The of delinquent life in 1970s Glasgow.
Green Hornet.
DVD
GAINSBOURG Beautifully-made biopic about
French songwriter, singer and lascivious hard
liver Serge Gainsbourg, with Eric Elmosnino
in the title role and late British actress Lucy
Gordon as his lover Jane Birkin.
THE GIRL WHO PLAYED WITH FIRE Part two
of Stieg Larsson’s Millenium Trilogy set in the
grime and violence of Sweden’s sex-traffick-
ing industry.

Ski chic for 7 8

men with style

Timothy Barber picks the pieces for a 9
fashionable time on and off the slopes
5
2 4
1

10 11
3 6
1 Napapijri knit top, £194, www.harrods.com
2 Stetson fur trapper hat, £74.99, www.julesb.co.uk
3 Burgandy shawl collar jumper, Topman, £38, www.topman.com
4 Barts quilted beanie, £16.99, www.johnlewis.com
5 Sorel caribou wool men’s apres ski boots, £135, www.foxsoutdoor.co.uk
6 Napapijri white ski pants, £239, www.napapijri.com
7 Mover gore-tex primaloft sport jacket, £590, www.mover.se
8 Moncler Anderson padded jacket, £610, www.harveynichols.com
9 Mover gore-tex helishell overall, £1,000, www.mover.se
10 Adidas ID2 ski goggles, £98, www.vision3k.com
11 Dakine men’s Crossfier glove, £29.99, www.snowandrock.com
 Living
22 CITYA.M. 14 JANUARY 2011

| Focus On

BASILDON BUYING
BY AMY HIGGINS

BEECHWOOD VILLAGE
Price: £234,000
A contemporary four-bedroom
home with style and eco-cre-
dentials. Its slick interior belies
this property’s energy-efficient
design which promises
reduced carbon emissions and
a sizeable dent in your energy
bill. Leafy avenues, a cycle lane
MORELLO QUARTER
Price: £129,000
Q&A
This well-appointed one bed-
room apartment, conveniently
situated a short walk from Camilla Dell
Basildon Station, is typical of MANAGING PARTNER OF
the new developments which BLACK BRICK PROPERTY
are springing up across the SOLUTIONS LLP
town as part of the regenera-
Q: What are your predictions for

and an ecological park com-
prise this house’s idyllic envi-
rons. Contact: Swan New
Homes on 08000 195005 or
Q.
tion project. Perfect for the
first time buyer who com- the 2011 property market? Will
mutes to London. there be more stock? When is a
Contact: Weston Homes on good time to buy?
0845 638 5012 or

www.beechwoodvillage.co.uk
THE CROFT
Price: £649,955
If you dream of escaping the
rat race to live the Good Life,
Tom and Barbara-style, this
chalet bungalow surrounded by
greenbelt could be for you.
With four bedrooms, two acres
of land and a paddock, there’s
ample room for growing kids
and even a horse.
Contact: John Cottis &
Company on 01375 676655 or
www.johncottis.co.uk
www.weston-homes.co.uk
NEED TO KNOW | AREA INSIGHT
Commuting: The c2c rail service will
whisk you from Basildon Railway
Station at London Fenchurch Street in a
timely 35 minutes.
Education: Basildon is home to one of
Essex’s five new Academies, which claim
to inspire and motivate its pupils with a
“bold new approach to education”. As
for indepenedent schools, the reputable
Brentwood School is just a 15 minute
drive away. Decent primaries are
plentiful.
Crime: Figures are in line with national
averages and improving: 2010 saw the
lowest crime rate in 3 years.
Restaurants and bars: Indian restau-
rants, Chinese takeaways and fast food
outlets dominate the culinary scene. But
you do not have to travel far to find
gems such as the cosily unpretentious
yet AA Rosette-winning Bear Inn in
Stock.
Leisure: If the BasVegas Leisure Park –
featuring a bowling alley, nightclub com-
plex and its very own white Hollywood-
style welcome sign pitched atop a small
mound on the A127 – is not to your
taste, fear not. The town is undergoing a
£1bn re-vamp including the creation of a
new wetland nature reserve.
A.
The prime central London property
market has constantly suffered from
a shortage of stock, and our advice
for potential buyers looking for a home is to
focus on finding and buying the right proper-
ty rather than the price. In terms of prices,
we don’t anticipate any significant price falls
in central London this year. Yes, the market
does face challenges – mortgages are still
extremely difficult to access, and taxes, VAT
and stamp duty are all going up next year.
However, price falls are likely to be limited in
central London, where the buyer profile is
very international, and there is a constant
lack of supply. In addition, recent reports
suggest that a significant proportion of bank
bonuses are likely to be spent on London
property next year. With prime property in
the capital yielding between four and five per
cent and borrowing costs at three per cent,
rents rising at their fastest pace for years,
and the high prospect for capital apprecia-
tion, a buy-to-let property is a far more
attractive investment than leaving your
money on deposit.

Q.
How will the changes to the con-
CURRENT MORTGAGE DEALS BY AMY HUGGIN Source: MoneySupermarket.com gestion charging zone affect prop-
erty prices?
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan

A.
We don’t see that the changes will
(per cent) (per cent) (per cent) to Value (per cent) have any significant impact on prop-
erty prices. (For full details of the
First Direct Flexible 1.99 2 years 3.69 3.5 65 new chages, see tfl.gov.uk/roadusers/conges-
Santander Flexible 2.19 2 years 4.24 4 60 tioncharging). However, some buyers, who
once were intent on living in areas within the
HSBC Flexible 2.29 Term 3.94 2.3 60 congestion zone in order to benefit from the
90 per cent discount, may now decide to live
Yorkshire BS Flexible 2.29 To Jan 2013 4.99 4.6 60 elsewhere. When the congestion charge first
came in, there was a lot of speculation that
NatWest Flexible 2.39 To April 2013 4 3.9 60 roads in Kensington and Chelsea would bene-
Santander Fixed 2.65 To Feb 2013 4.2 4.2 60 fit because they would be less busy, but this
never actually materialised. Ultimately, the
First Direct Fixed 2.69 2 years 3.69 3.7 65 draw of living in a good location, regardless
of whether it is in the congestion charging
Yorkshire BS Fixed 2.99 To Jan 2013 4.99 4.7 75 zone or not, will far outweigh the downside
of having to pay congestion charge.
Post Office Fixed 3.45 To Dec 2012 3.99 4.1 80
Chelsea BS Fixed 3.29 To Feb 2014 5.79 5.2 75 Camilla Dell is the managing partner of Black
Brick Property, the finding agent.
Mansfield BS Fixed 3.49 3 years 5.59 5.2 75

PROPERTY NEWS
BY AMY HIGGINS AND ZOE STRIMPEL

REMEMBER THE RIGHT TO MANAGE
Leaseholders should “take control” of their properties
and stop getting “ripped off” by managing agents, says
block management specialists Urban Owners. Over 70
per cent of lease-holding flat owners are unaware of
the Right to Manage – government legislation which
gives them the right to take over the management of
their properties. By taking on the Right to Manage,
each leaseholder stands to save approximately £400 a
year. Management agents often charge over the odds
on cleaning and other basic maintenance and services.
UNSTABLE PROPERTY MARKET FORECAST
UK house prices will have fallen by 4 per cent from
current levels by the end of 2011, predicts C B Ellis,
the commercial real estate firm. Unemployment and
restrictions on lending are expected to diminish
demand in the short term. However, healthier condi-
tions are anticipated in London and the South East,
where the market should be boosted by a City bonus
pool of £7.2bn. Slower completion of projects, creat-
ing limited supply, could also lead to a cramped
demand that pushes prices too high.
CHESTERTON HUMBERTS FREEZES VAT
Sellers acting through estate agents Chesterton
Humberts will see their VAT on the agent’s fees frozen
at 17.5 per cent until 28 February. The company will
pay the extra 2.5 per cent itself, as long as sellers
instruct the company as sole agents at their standard
commission rate and contracts are exchanged on or
before 30 April 2011. “We want to give property own-
ers considering selling a bit of motivation,” says
Robert Bartlett, CH’s CEO. “We want to do what we
can to minimize the pain.” Every little helps, right?
BARBADOS IS BACK
After a wobble during the recession, the Brits’
favourite sunny island is regaining strength. Estate
agent Cluttons reports an increase of 70 per cent in
sales completed between 2009 and 2010. It is still a
good time for buyers, though, as prices have stayed 15
per cent lower than they were in 2008. Kieran Kelly, of
Cluttons Barbados, says: “Home buyers are attracted
by the potential to negotiate a discounted price with
high expectations of rental and capital growth.”
Figures indicate that prime locations bounce back first.
 Queen Mary’s Gate, South Woodford, E18 Q
URBAN CONNECTIONS
W I T H A C O U N T RY T W I S T

1, 2 & 3 bedroom apartments and penthouses offering the space to enjoy and to entertain in style, Sales Centre open daily
design that will make you the envy of your friends, and the luxury of the Capital in easy reach. Mon - Sat 10am - 6pm
Sun 11am - 5pm
Apartments from £230,000* including parking
Private gated development with 24 hour concierge • Landscaped gardens and courtyards • Balconies & terraces to all apartments†
Central line connections:

Q
South Liverpool Canary Bond
Woodford Stratford Street Bank Wharf Street
10-15 mins walk 10 mins 19 mins 21 mins 25 mins 30 mins

0800 883 8607 www.queenmarysgate.co.uk

or (out-of-hours) 0800 032 0077
*Price correct at time of going to press. Photographs depict Queen Mary’s Gate. †Applies to Freshman’s House, Gatekeeper’s Lodge and Grove House.

www.apdinteriors.com

No need to move, improve

Is your home looking tired?
In need of a makeover?
Need to entertain in a beautiful
new kitchen or lounge?

Then make the most of our special offer and have the home you
want this year without breaking the bank.
We can deliver a complete home renovation, extensions or loft/
basement conversions, interior design or the redesign of a single
room, without disrupting your busy life.
Increase the value of your home by up to 22%* by investing in any
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our offer, quote APDCAM

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Email. info@apdinteriors.com Web. www.apdinteriors.com
*Nationwide Building Society.
 24 Lifestyle | TV& Games CITYA.M. 14 JANUARY 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm A Question of Sport:
BBC News
8pm EastEnders
8.30pm CHOICE QI
9pm Hustle
10pm BBC News
10.25pm Regional News
10.35pm Graham Norton Show
11.20pm The National Lottery
Friday Night Draws 11.30pm FILM
Starship Troopers 1997;
Weatherview 1.30am Sign Zone:
James May’s Man Lab 2.30am
Miracle Cure? A Decade of the
Human Genome 3.30am Filthy
Rotten Scoundrels 4.15am-6am
BBC News
6pm Eggheads: Quiz show,
hosted by Jeremy Vine.
6.30pm Great British Railway
Journeys
7pm Live Snooker: The
Masters: The fourth best-of-11-
frames quarter-final.
8pm Mastermind
8.30pm Life in a Cottage
Garden with Carol Klein
9pm Can’t Take It with You
10pm Fast and Loose
10.30pm Newsnight
11pm The Review Show:
Weather
11.50pm Snooker: The Masters:
12.40am Snooker Extra
2.40am BBC News 4.15am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm Monkey Life
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Coronation Street 7.25pm 4thought.tv 7.30pm Michaela’s Zoo Babies:
8pm Children’s Hospital 7.30pm The Pawn King Five News Update
8.30pm Coronation Street 7.55pm Jamie’s Fish Supper 8pm Pirates of the Caribbean:
9pm CHOICE Comedy Rocks 8pm Relocation: Phil Down The True Story: The events that
with Jason Manford Under inspired the fantasy films; Five
10pm ITV News at Ten 9pm CHOICE Heston’s Fishy News at 9
10.30pm London News Feast 9pm The Mentalist
10.35pm Take Me Out 10pm Shameless 10pm CSI: Crime Scene QI
11.50pm 30 Years of An 11.10pm FILM Hot Shots! Part Investigation BBC1, 8.30PM
Guests David Mitchell, Rob Brydon,
Audience With Deux 1993. 10.55pm NCIS
12.40am The Zone; ITV News 12.50am Music on 4: 4Play: 11.55pm Cops in Crisis Sandi Toksvig and regular panellist
Headlines White Lies 12.15am SuperCasino Alan Davies join host Stephen Fry, who
2.40am FILM US Marshals: Thriller 1.05am My Name Is Earl 1.55am 4am Motorsport Mundial 4.25am asks questions on the topic of history.
sequel, starring Tommy Lee Jones. Comedy Lab: iCandy 2.20am FILM How Not to Decorate 5.10am
1998. 4.50am-5.30am ITV Baby Boy 2001. 4.30am ER Wildlife SOS 5.35am-6am House
Nightscreen 5.15am-6am Countdown Doctor

SKY SPORTS 1 3.30am European Tour Golf 10pm CSI: Crime Scene 12.40am Scrubs 1.35am DISCOVERY HOME &
SATELLITE & CABLE

5.30am-6am Powerboating Investigation 11pm Criminal Supernanny USA 2.15am Wife

7pm Sky Sports News at
Seven 7.30pm Live European
Cup Rugby Union 9.55pm Live
Test Cricket 5am Take It Like a
Fan 5.30am-6am Premier
League Preview
SKY SPORTS 2
7pm Tight Lines 8pm
International Twenty20
Cricket 10pm Take It Like a
Fan 10.30pm Premier League
Preview 11pm Football League
Weekend 12am NFL: Total
Access 1am Take It Like a Fan
1.30am Premier League
Preview 2am Football League
Weekend 3am Tight Lines 4am
Airsports World 4.30am NFL:
Total Access 5.30am-6am
Kings of the Snow
SKY SPORTS 3
6.30pm Elite League Ice
Hockey 7.30pm Live Football
League 10pm European Tour
Golf 12am Live PGA Tour Golf
BRITISH EUROSPORT
5.35pm Caribbean Twenty20
Cricket 7.15pm Live Dakar
Rally 7.45pm euroCRASH!
8pm Live Caribbean Twenty20
Cricket 11pm Dakar Rally
11.30pm-12.30am Poker
ESPN
7pm Goal! Special 7.30pm Live
Bundesliga 9.30pm Premier
League Preview 10pm ESPN
MMA Live 10.45pm ESPN
Kicks: Extra 11pm Freestyle
World Cup 11.30pm Rallycross
12.30am Live NHL Ice Hockey
3am Freestyle World Cup
3.30am-6am Live NBA
Basketball
LIVING
7pm Ghost Whisperer. A
woman is haunted by the
ghost of her fiance’s wife. 8pm
Bones 9pm Criminal Minds
Minds 12am CSI: Crime Scene
Investigation 2.50am
Charmed 4.30am Celebrity
Four Weddings 5.20am-6am
Maury
BBC THREE
7pm Most Annoying People
2010 8pm Doctor Who
8.45pm Doctor Who
Confidential 9pm Come Fly
with Me 9.30pm Him and Her
10pm EastEnders 10.30pm
Sun, Sex and Suspicious
Parents 11.30pm Family Guy
12.15am Snog, Marry, Avoid?
1.10am Most Annoying People
2010 2.10am Sun, Sex and
Suspicious Parents 3.10am Is
Oral Sex Safe? 4.10am-
5.10am Snog, Marry, Avoid?
E4
7pm Hollyoaks 7.30pm Friends
9pm Supernanny USA 10pm
Wife Swap 11pm Tool Academy
Swap 3.10am Beauty and the HEALTH
Geek 3.50am Life Unexpected 7pm A Baby Story 8pm 10
4.30am-6am Switched Years Younger 9pm Quints By
Surprise 10pm Raising 10 Kids:
HISTORY The Hayes Way 11pm Chopper COMEDY ROCKS WITH JASON
7pm Heir Hunters 8pm IRT Rescue 11.30pm A&E: Outback MANFORD ITV1, 9PM
Deadliest Roads 9pm 12am Quints By Surprise 1am The award-winning comedian presents
Mysteryquest 11pm The True Raising 10 Kids: The Hayes stand-up by leading lights on the circuit,
Story 12am Mysteryquest 2am Way 2am Chopper Rescue along with music by acts currently in
The Nostradamus Effect 3am 2.30am A&E: Outback 3am 10 the charts, beginning with the Script.
Death Masks 5am-6am Years Younger 4am Bringing
Barbarians Home Baby 5am-6am A Baby
Story
DISCOVERY
8pm How Do They Do It? SKY1
8.30pm How It’s Made 9pm 8pm Futurama 9pm A League
Interview with a Poltergeist of Their Own: Best of.
10pm Sole Survivor 11pm Memorable moments from
Surviving the Cut 12am Bear comedy panel show. Hosted by
Grylls: Born Survivor 1am James Corden. 10pm Got to
Deadliest Catch 2am Days That Dance 12am Road Wars HESTON’S FISHY FEAST
Shook the World 3am Treasure 1.50am Ross Kemp on Gangs CHANNEL4, 9PM
Quest 3.50am Mark Williams 2.40am Oops TV 3.30am The Chef Heston Blumenthal tries to
on the Rails 4.40am Building 4400 4.20am Don’t Forget the create the ultimate sustainable
the Biggest 5.30am-6am How Lyrics 5.10am-6am Are You seafood feast in an effort to
Does That Work? Smarter Than a 10 Year Old? highlight dwindling fish stocks.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
8 32 23 14 22 34 16
3 7 22
6 
33 12
Place the numbers from 1 to 9 in each empty cell so that each 12  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 10
5 35
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 45
 
above or to the left of it.
You can only use the digits 1-9 13 16 13     
   and you must not use the
39 38
15  
same digit twice in a block. 17 21 27 4
     The same digit may occur 24 17 11   
9 7
  more than once in a row or
column, but it must be in a
45

11 20
    separate block.
9 17
9 29
 
13 6 10

  
 ACROSS DOWN
1 Types, varieties (5) 1 Emphasis (6)
 
     WORDWHEEL M U
4
7
Great danger (5)
Highly excited (4)
2 British explorer
of the Arctic and
Antarctic (4)
Using only the letters in the Wordwheel, you have 8 Short formal piece
   ten minutes to find as many words as possible,
D R of writing (5) 3 Corset (5)
9 5 One half of a
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 10
Make warm (4)
Time assigned on a
quarter (6)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
T E 12
schedule or agenda (4)
Japanese drink made
6 Pierce with a
sharp stake (6)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
O N from fermented rice (4) 11 Science room
(abbr) (3)
15 Back part of a shoe (4)
QUICK CROSSWORD 6 9 8 7 3 2 8 1 17
13 Slowly, in musical
W A T C H L U C I D
2 5 3 1 8 4 9 6 SUDOKU         
Aggressive and
pointed remark (4)
tempo (6)
1 7 9 8 7 1 14 Kicks out (6)
X A M H I
3 8 2 3 1 9 5
         19 Challenge to
M E L T O B S E S S
3 7 9 5 6 8 1
         do something 16 Canine film star (6)
O E L M M P
        
D E C R E E R I C E 3 8 1 9 6 4 5 7 2 dangerous (4) 18 Attitude, beliefs (5)
        
E
R O
H E
A R
I N
T
O U S
U B E
N
R S
1
7
6 4 5 7 2
9 2 4
3
2 8 4
WORDWHEEL          20 Ruptures (5) 21 Verdi opera with an
Egyptian theme (4)
A N A T E E
7 3 2 1 7 1          22 Ready money (4)
T A N K E R L E A D The nine-letter word was
O E Y L D 4 7 9 8 7 2 9 8          23 Brag (5)
1 9 8 6 2 1 4 3
ABATEMENT         
R U L E S B A C O N
24 Debonair (5)
 Punter
25

| Sports ...the home of form

SPORT TRADER BEN CLEMINSON AND BILL ESDAILE BRING YOU THE BEST FOOTBALL AND RACING BETS OF THE WEEKEND

United set for

another away
day stalemate
TOTTENHAM
MANCHESTER UNITED
SUNDAY – 4.10PM SKY SPORTS 1
SOMETHING is going to have to give at
White Hart Lane on Sunday afternoon if
either Tottenham or Manchester United
are going to walk away with a victory.
United are still unbeaten in the league
this season, while Spurs have lost just
once on home turf.
Sir Alex Ferguson will be the first to
admit that his side haven’t been at their
best this campaign, but they are sitting
pretty at the top of the table with games
in hand. A win on Sunday would be a
major step towards claiming another
Premier League title and the Red Devils
have a brilliant record against Spurs.
In the last 19 league meetings between
the clubs, United have won 15 and drawn
the other four, with Tottenham’s last win
coming at White Hart Lane in 2001.
However, this is a very different Spurs out-
fit and Harry Redknapp will be confident
that his side can take at least a point.
United have been the draw specialists
on the road this season with seven of their
nine away games ending in a stalemate.
They have also gone into the interval level
in eight of those contests and the same is
true in six of Spurs’ 11 home fixtures this
term. Another interesting statistic is that
three of United’s last four away visits to
top-six sides have been goalless at the
break.
At the prices, I’d rather back Spurs at
2/1 than United at 6/4, despite their poor
record against the Red Devils, but the
draw looks the best option at 23/10 with
William Hill. Redknapp would probably
be happy with a point and his team have
drawn at home against both Manchester
City and Chelsea this season.
Ferguson knows his side are in a very Van der Vaart has
strong position and he will be keen that scored 11 times for
they continue their unbeaten run. This Spurs this season,
isn’t quite the free-flowing United side seven of which have
that we’ve become accustomed to over the come at White Hart
years, so a cagey opening looks on the Lane
cards. That may interest buyers of the time
of the first match goal at 40 with Sporting Picture:
Index, but I’ll stick to a sell of goals at 2.5. ACTION IMAGES
I would be surprised if it wasn’t tight in
the first half and there is some value in
backing the draw / draw double result at
4/1 on Betdaq. I also wouldn’t put anyone
off having a small bet on no goalscorer at a
general 9/1. There have been a few disap-
pointing, defensive games between the big
sides in recent weeks.
POINTERS...
Draw at 23/10 with William Hill
Draw / Draw at 4/1 on Betdaq
Sell total match goals at 2.5 with Sporting Index

Christmas Star still burning bright!

C
HRISTMAS was lovely, but there was something
missing - and I’m not talking about sprouts or
brandy butter. Well, that something was
Kempton’s King George which was claimed on
Boxing Day by the frost and will finally be run tomor-
row. Regular readers of this column were advised
before Christmas to take the even money available
with Paddy Power about KAUTO STAR landing the
contest for a record breaking fifth time and, like the
frost, that price has long gone.
Paul Nicholls’ star is currently trading at around
4/6 and may get even shorter if the heavens open. I
certainly wouldn’t rule out him touching 1/2 and that
may well be the time to reach for the lay button on
Betdaq as he is no certainty. The Nightingale was rea-
sonable each-way value earlier in the week at around
20/1 but does not appeal now that his odds have
halved.
Therefore, there may be better value in looking at
some of the other races on tomorrow’s bumper nine
race card and the Paul Nicholls team can get the day
off to a flyer with BRAMPOUR in the opener. He is
reportedly the stable’s best juvenile hurdler and judg-
ing by his French form, the ground should hold no
fears.
The Christmas Hurdle is a muddling six runner
affair and it is very hard to separate the top three in
the market. Last year’s Champion Hurdle winner
Binocular looks sure to be sent off favourite, but I’m
not sure the small field and muddling pace will play
to his strengths. I’d far rather be a layer than a backer
on Betdaq and would probably look to take him on
with STARLUCK who will travel supremely well and
should trade as favourite approaching the last flight.
The declarations for the Lanzarote Hurdle aren’t
made until later this morning, but I’ll be keeping a
close eye out to see whether Nick Williams runs
JAMES DE VASSY. He didn’t seem to stay three miles
on his reappearance and the drop in trip is just what
he needs.
However, one horse who looks sure to run tomor-
row is Emma Lavelle’s COURT IN MOTION who can
land the Grade Two Novices’ Hurdle at Warwick
before going on to run in the Albert Bartlett at the
Cheltenham Festival. If he impresses tomorrow, the
14/1 freely available about him for that race will dis-
appear fast.
While on the subject of Cheltenham, if you
haven’t yet made plans for the opening day of the
Festival, then ‘Cheltenham in the City’ sees Green’s
Restaurant and Ladbrokes joining forces to help raise
money for the Raising the Stakes appeal at Great
Ormond Street with a gourmet lunch and afternoon
of racing action.
Chaired by Richard Glynn, Chief Executive of
Ladbrokes Plc, a committee of high level executives
from the gaming community are helping to
galvanise support for Raising the Stakes with an ini-
tial aim of raising £500,000 to fund a four bedded
high dependency bay in Great Ormond Street
Hospital’s Cardiac Critical Care Unit. Money raised
on the day will go towards this target, so if you are
interested in taking a table at a truly worthwhile
event, you can contact Rebecca Hannawin by calling
020 7239 3164 or you can email her at
Rebecca.hannawin@gosh.org.
 Sport
26 CITYA.M. 14 JANUARY 2011

Spurs boosted as
Olympic chief stays
Fabregas hit out at Ipswich’s tactics during
the defeat at Portman Road Pic: EMPICS

Ipswich were out of stadium row

playing rugby, troversial process. They have
▲

FOOTBALL
talked up their preference to keep
says Fabregas BY FRANK DALLERES
TOTTENHAM have been handed a
boost in their bid to move into the
the track but have repeatedly
refused to rule out bids that won’t.
Spurs have raised eyebrows by
Olympic Stadium after Jacques revealing they intend to bulldoze
FOOTBALL Rogge, the president of the the £500m stadium constructed
▲

International Olympic Committee for the London 2012 Games in

ARSENAL captain Cesc Fabregas has
criticised Ipswich’s supposed heavy-
handed tactics during their shock
Carling Cup semi-final first leg win at
Portman Road on Wednesday.
Tamas Priskin’s second-half strike
handed the Championship strugglers a
famous victory, but Fabregas was
unimpressed with their game plan and
claimed the winning goal came from a
“rugby kick”.
“I don’t know if it is long ball or it is
a rugby kick but it worked for them,”
said Fabregas. “In England, a lot of
teams play like that and it works for
them, they create chances like that
and it is their football. We just have to
put the ball on the floor and try to play
football.
“Still, we played well. We were good
enough but just did not put the ball in
the back of the net. I can remember
only two opportunities for them but it
was from a long, long ball because
when they were playing football they
could not really get in behind us.
“It is disappointing because we were
the much better team but it was one of
those nights.”
Arsenal have injury concerns over
goalkeeper Lukasz Fabianski and mid-
fielder Denilson ahead of tomorrow’s
match at West Ham.
(IOC), ruled out intervening in the order to build a new arena on the
escalating row. site to their specifications.
Rogge, one of the most powerful They want to scrap the running
men in world sport, had hinted he track, which they feel would hin-
would actively oppose der the spectator experience, and
Tottenham’s plans to tear down have instead promised to deliver
the £500m venue and scrap the an athletics legacy by pumping
athletics track if they are preferred money into a redevelopment and
to rival bidders West Ham. expansion of Crystal Palace.
But last night he clarified the Tottenham’s £250m plans have
IOC’s position, admitting that he upset fans who do not want them
would prefer to see the track to leave their traditional home in
retained at the Stratford venue, he N17, while local MP David Lammy
had no jurisdiction and would not has vociferously spoken out
seek to exercise any influence. against their proposed switch.
Rogge (inset) said: “We would “This is no different to
favour a solution with a track lega- the situation that
cy. But the decision is in the hands emerged with MK Dons
of the OPLC [Olympic Park Legacy and AFC Wimbledon,”
Company] along with UK Athletics he said yesterday.
and Locog [the London Organising West Ham have
Committee for the Olympic the backing of UK
Games]. Athletics due to
“If a solution could be found for their commitment
the track we would be happy, but to retain the run-
don’t expect the IOC to intervene ning track. A key
in an issue where we are not promise made by
responsible.” London when bidding OPLC chiefs are due to
OPLC chiefs are due to for the Games was that announce the winning
announce the winning bid on 28 the event would create an bid on 28 January
January, bringing to an end a con- athletics legacy. Picture: REX

WHIZZ-KIDZ HAS
Murray’s preparation hit by rain SPORT | IN BRIEF

LONDON ON
MARAAITLAHBL Murray is seed-
King can’t Cope with Jamie
SNOOKER: Masters debutant Jamie

PLACES AV E! ed fifth for the

Australian
Cope produced a stylish display to ham-
mer Mark King 6-1. Cope will face Ding
Open Junhui in the semi-finals after the for-
Pic: REUTERS mer finalist defeated an out of sorts
Graeme Dott 6-2.

Aussie star Tait signs for Surrey

Whizz-Kidz is the working name for The Movement for Non-Mobile Children.

CRICKET: Surrey have signed Australia

paceman Shaun Tait as an overseas
player for this summer's FP t20 com-
petition. The 27-year-old will join up
with Surrey shortly before their first
group match against Gloucestershire
▲

TENNIS against Cilic due to take place after the main on 2 June.
BY JAMES GOLDMAN matches yesterday, there simply wasn’t enough
Babel accepts Twitter charge
Registered charity No. 802872.

time to fit the match into the schedule.

BRITISH No1 Andy Murray’s preparations for
next week’s Australian Open have been ham-
pered by heavy rain in Melbourne.
Murray had been hoping to fit in one more
practice match, against Croatian Marin Cilic, the
RUN FOR DISABLED KIDS! man he beat last year in the semi-finals, ahead of
the start of the first grand slam event of the new
e: events@whizz-kidz.org.uk season.
t: 0207 233 9696 However, rain wiped out Wednesday’s play at
w: www.whizz-kidz.org.uk the Kooyong Classic, playing havoc with the four-
day event and with World No5 Murray’s game
Tournament director Colin Stubs said:
“Precedence has to go to the matches of players
who signed up. Andy didn’t.”
Murray, beaten by Roger Federer in the final 12
months ago, has slipped below Robin Soderling
in the world rankings since the start of the year
and has been seeded fifth for the Australian
Open.
Murray could, therefore, be scheduled to meet
any of the top four at the quarter-final stage
when the draw is made today.
FOOTBALL: Liverpool have confirmed
Ryan Babel has accepted a charge of
improper conduct from the Football
Association over a Twitter post con-
cerning Howard Webb. The Dutch for-
ward linked to a mocked-up picture of
referee Webb in a Manchester United
shirt after Liverpool had lost 1-0 at Old
Trafford in the FA Cup. Babel has
requested a personal hearing which will
take place on Monday.
CITYA.M. 14 JANUARY 2011 27

The rotten luck of the Irish

They’ve lost 10 games in UNWANTED RECORDS | LOSING RUNS
a row, but Exiles forward RUGBY UNION
In early 1913, France was host to a tour-
Nick Kennedy believes a ing Springboks party and lost 5-35. The
match was part of an era that lasted
turnaround is imminent from 1911 until 1920 which saw France
lose 18 games in a row.
RUGBY LEAGUE
▲

Q+A | OLYMPIC STADIUM ROW
WHY DO SPURS WANT TO MOVE IN?
White Hart Lane is not big enough,
while building a new ground in north
London would cost an extra £200m.
AND WEST HAM? The East End’s
biggest team are keen on an upgrade
from dated Upton Park, and see the
one being built down the road as ideal.
WHAT ARE THEIR ARGUMENTS?
Spurs say their stronger finances and
greater ticket demand, plus the back-
ing of O2 chiefs AEG, make them a
safer bet. West Ham say they will keep
the athletics track, ticking the legacy
box, and are the “logical” choice.
WHEN WILL A DECISION BE MADE?
The Olympic Park Legacy Company is
due to pick the winner on 28 January.
RUGBY UNION
BY JAMES GOLDMAN
LONDON IRISH forward Nick
Kennedy insists spirit in the camp is
as healthy as it’s ever been despite a
run of 10 consecutive defeats.
That miserable sequence of results
stretches back to the beginning of
November, before when the Exiles
had won six of their previous seven
matches and put themselves in
healthy positions on the domestic
and European fronts.
But such has been their rapid fall
from grace that even a resounding
victory in Sunday’s Heineken Cup
pool match against Ospreys may not
prolong their involvement in the
competition should results elsewhere
go against them.
Despite the grim outlook, Kennedy
maintains the squad are as tight as
ever, united in their quest to turn the
club’s fortunes around and finish the
season strongly.
“I can’t lie and say everything is
hunky-dory. Obviously there has
been a lot of soul searching but in a
strange way this run has brought us
closer as a unit,” he told City A.M.
“Nobody enjoys losing, but if you
can’t smile and maintain some level
of banter then it’ll just eat you up.
“When you’re on a run like this
spirit is not normally high but we’re
still coming into training with smiles
on our faces and enjoying our jobs.
“We know we’re not far off the lev-
els we need to be to get wins at this
level. We need to keep things in per-
spective and if you look at the
Premiership table we’re only three
points off a top four.”
Irish finished sixth last term and
were Premiership runners-up the sea-
son before, leading coach Toby Booth
to proclaim there was no need to
stray from the methods which have
brought recent success.
Kennedy admitted he found the
recent defeat against Bath – where
they lost to the last kick of the game
– particularly difficult to take but
believes it was evidence that Irish are
close to a return to winning ways.
“Of course you look yourself as a
Kennedy will feature in
Sunday’s Heineken Cup
match against Ospreys
Picture: ACTION IMAGES
team and as individuals when you’re
on this sort of run. But essentially we
have enjoyed a great deal of success
over the last few years playing a cer-
tain way. There’s no need for us to
tear things up and start again.
“The Bath defeat was particularly
galling but they are a solid team and
to come so close to winning shows
we’re not doing much wrong. We’ve
For just over two years – from January
1989 to February 1991 – Runcorn
Highfield lost every single match, in both
league and cup. That’s 61 straight defeats.
CRICKET
Bangladesh have set records in all three
versions of the game for consecutive
defeats, but it is in the 50 over format
they tend to excel at losing. Between
1986-1998 the Tigers lost 22 consecu-
tive ODIs, but the class of 2002 eclipsed
them by losing 23 matches on the trot.
FOOTBALL
In the Premier League era two teams,
Derby County and Sunderland, stand out
as being particularly inept. The Black
Cats side of 2002-03 were relegated
with, a then, record low of 19 points and
lost 15 consecutive matches between
January and May. The Rams managed to
avoid breaking the record for consecutive
defeats, but did set a new benchmark by
going 32 games without a win.
BASKETBALL
In the 1972/73 season, the Philadelphia
76ers lost a scarcely credible 73 of their
82 games, prompting their rivals’ fans to
nickname them the 73ers.
not been losing games because of
one thing in particular. Sometimes
it’s been the scurm, sometimes we’ve
been slow at the breakdown, but
we’ve sorted those areas now.
“Once we get that win, whether it
be against Ospreys on Sunday or in
the next match, the confidence will
flood back and we’ll go on a strong
run until the end of the season.”

Wasps and Quins must finish strongly to claim top spots
LEINSTER V SARACENS
(TOMORROW, HEINEKEN CUP)
Leinster will hope to dominate in
the fly-half battle: their No10
Jonathan Sexton has accrued an
impressive 492 Amlin Opta
Index points with his kicking,
and has also made the fifth
most passes by any fly-half in
the competition so far.
WEEKEND PREDICTIONS
LAWRENCE DALLAGLIO’S VERDICT:
DALLAGLIO Saracens have nothing left to
play for but pride, especially
having lost to Leinster at
Lawrence Dallaglio, Amlin Wembley. Sarries will say the
rugby ambassador, uses the departure of boss Brendan
new Amlin Opta Index player Venter doesn’t make any dif-
performance analysis to give ference but undoubtedly it
his verdict on this weekend’s will have an impact. Leinster
European clashes involving will be desperate to put them-
London clubs. The Index is the selves in touching distance of
first ever player performance the next roundand will very
comparison analysis in rugby. hard to beat at home.
GLASGOW V WASPS
(SUNDAY, HEINEKEN CUP)
Dave Walder is Wasps’ top rated
player and their top rated kicker.
Only two backs in European
rugby have notched up more
Amlin Opta Index points this
season than him, with his points
total being boosted by his 74 per
cent goal kicking accuracy rate.
DALLAGLIO’S VERDICT:
This is a must-win game for
Wasps, who are in a two-way
tussle to win Pool Six. Victory
would set up a grandstand fin-
ish to the group and give them
a great chance of winning it,
or at least qualify as one of the
best runners-up. Wasps won
the reverse fixture but can’t
underestimate Glasgow,
whose Six Nations hopefuls
will be keen to impress.
LONDON IRISH V OSPREYS CAVALIERI PRATO V
(SUNDAY, HEINEKEN CUP) HARLEQUINS
Delon Armitage (716 points) is
the top Exiles player in the
Amlin Opta Index – he has made
35 carries, the second most at
the club. Sailosi Tagicakibau has
made the second most metres
with the ball in hand in the
Heineken Cup this season (301).
DALLAGLIO’S VERDICT:
Irish are on a wretched run
and, while I’m sure Toby
Booth will turn it around soon,
he could hardly have a harder
next two games, with Ospreys
and Munster two of the best
in Europe. This pool is so tight,
the Exiles aside, and Ospreys
can’t afford to drop points if
they are to finish top. Ospreys
have looked good lately and I
just don’t see an upset here.
(TOMO, AMLIN CHALLENGE CUP)
Tom Guest (880 points) is
Harlequins’ top player based on
the Amlin Opta Index, with
more metres (181) and carries
(36) than any of his team-mates,
while Will Skinner is Quins’ lead-
ing tackler, with 31.
DALLAGLIO’S VERDICT:
Quins are flying and unbeaten
in all competitions in six
games, but are locked in a
battle for top spot with
Bayonne. I expect the
Frenchmen to keep winning
which means Quins must do
too. They thrashed Cavalieri
Prato at home and I expect
them to rack up another com-
fortable win – the question is
can they get a bonus point?
Results
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email sport@cityam.com