PREMIUM
TICKETS
BRITISH LAND SIGNS FIRST
CHEESEGRATER TENANT
Issue 1,383 Tuesday 17 May 2011
LSE IN SIGHT
AS NASDAQ
PULLS NY BID
FINANCIAL MARKETS
▲
BY ALISON LOCK
INVESTORS bet on the London Stock
Exchange (LSE) becoming the next hos-
tile takeover target yesterday after US
exchange Nasdaq dropped its bid for
NYSE Euronext and rejoined the race
for a merger partner.
LSE shares jumped 6.8 per cent
despite it suffering a setback in its
merger with the Toronto Metals
Exchange when Canadian consortium
Maple stepped up its counter-attack.
Instead the LSE’s merger mess is
seen to make it an increasingly vulner-
able target itself, with a bid from
newly-single Nasdaq, its long-term
suitor, likely.
Nasdaq was yesterday forced to drop
its $11bn (£6.8bn) hostile bid with part-
ner IntercontinentalExchange for
NYSE Euronext after US antitrust regu-
lators said they would block the deal.
Nasdaq OMX chief executive Bob
Greifeld said he was “surprised and
disappointed in the antitrust divi-
sion’s conclusion”.
But sources close to Nasdaq said
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while the NYSE Euronext bid had been
opportunistic, the exchange was
“keeping all its options open” with
regard to further offers.
Analysts said if the Nasdaq
approached the LSE with anything like
its bid for NYSE Euronext – a 20 per
cent premium on an already-raised
share price – the offer would be “a no-
brainer” for shareholders.
“If the offer was for a 25 per cent
premium it would be a merger of
equals,” one said, adding that there
would be none of the antitrust issues
that have dogged the Nasdaq-ICE and
NYSE Euronext deal and also NYSE
Euronext’s agreed merger with the
Deutsche Boerse, which must pass
European regulators.
But he warned that another hostile
bid by Nasdaq was as unlikely to suc-
The London Stock
Exchange, headed by
Xavier Rolet, may be the
next target of acquisitive
US exchange Nasdaq
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www.cityam.com
ceed in London as it had in the US.
“The greatest lesson of the past five
years is that in exchange land you can-
not do deals without them being
friendly – therefore having buy-in
from the LSE’s board and manage-
ment team is important.”
Numis analyst James Hamilton said
he saw a more than 50 per cent chance
that TMX shareholders would reject
the current offer from the LSE – but a
higher LSE offer would be less likely to
pass regulatory hurdles.
“The failure of the deal increases
the risk of an offer being made for the
LSE. Post a failed deal the LSE’s market
position will be relatively small in the
new larger exchange world,” he said.
“We believe the long term strength
of the LSE’s market position is depen-
dant on it finding increased scale.”
Sources close to the LSE dismissed
the idea of a Nasdaq bid, citing con-
cerns over the high level of debt that
would be incurred by such a deal.
Greifeld has led two previous bids in
2006 for the LSE, including a hostile
bid in November 2006, which were
both rejected out of hand. MORE: P10
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Dominique Strauss-Kahn has been sent to Rikers Island jail after being refused bail
IMF boss refused bail
ENFORCEMENT Prosecution lawyers say there is
▲
BY STEVE DINNEEN forensic evidence corroborating the
maid’s account. Lawyers in France
IMF boss Dominique Strauss-Kahn claimed Strauss-Kahn had already
was denied bail yesterday over alle- left the hotel to meet his daughter
gations he attempted to rape a maid for lunch at the time of the attack.
in a New York hotel. Scheduled meetings went ahead
A US judge decided he was at high in his absence, with European
risk of taking flight despite his fami- finance ministers voting to approve
ly offering to pay $1m (£617,500) in Portugal’s €78bn (£68bn) bailout.
bail. He will now remain in custody The IMF said last night that no
at New York’s Rikers Island prison decision had been made on Strauss-
until his next hearing on 20 May. Kahn’s future. MORE: P6-7
Certified Distribution
04/04/11 - 01/05/11 is 103,899
 2 News
Glencore heads towards final strait
EDITOR’S LETTER
DAVID HELLIER
T
HERE is still time for it to all go
horribly wrong but the signs are
very much that the commodi-
ties trader Glencore is about to
pull off a major triumph with its $11-
$12bn flotation.
The process, which began some
weeks ago but was foreshadowed by
months if not years of speculation,
has been played out against a back-
drop of a poor IPO market, at least in
London where several flotations have
recently been pulled and where the
majority of the new Glencore shares
are being sold.
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Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
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Sales Director Jeremy Slattery
Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
WEST COAST RAIL FACES RETURN TO
STATE HANDS
Britain’s most profitable train fran-
chise could be taken back into state
hands following a government deci-
sion to delay the auction of the West
Coast service amid an overhaul of the
rail system. Virgin Trains is due to
hand back the contract to run the
lucrative London to Glasgow route in
May 2012. But although the govern-
ment has announced a four-strong
shortlist of bidders for the franchise,
it has postponed the start of the con-
tract until January 2013.
EQT CUTS FEES AS IT TARGETS €6BN
FUND
EQT is offering investors a large “early
bird” discount for one of the biggest
European buy-out funds since the
financial crisis, in a sign of how pri-
vate equity groups are going to
greater lengths to attract further cap-
It also takes place at a time of sub-
stantial volatility in the commodities
markets, with some expecting a sharp
fall in the price of oil and metals in
particular over the next few months.
The whole flotation marketing
process also got off to a notoriously
crass start, with confusion over the
choice of a new chairman that led to
the two top candidates briefing
against each in public and more sav-
agely in private.
Its eventual chairman Simon
Murray then managed to insult the
corporate governance groups with
some rather politically incorrect
thoughts about the role of women in
business.
The media commentariat thor-
oughly enjoyed the carping between
the nearly man candidate and former
BP chief Lord Browne and Murray but
Glencore’s management and its advis-
ers simply ignored the background
noise and got on with the job of sell-
ing; they sold the company’s track
record, its future prospects and its
BP misses key
deal deadline
ENERGY
▲
BY KATIE HOPE
TALKS to rescue BP’s $16bn (£9.9bn)
share swap with Kremlin-controlled oil
group Rosneft appeared close to col-
lapse last night as the midnight dead-
line passed without any deal being
announced.
The deal, which would give BP an
interest in offshore Arctic exploration
venture leases that could contain over
40bn barrels of oil, has previously been
blocked in the courts by BP’s tycoon co-
owners of its Russian venture TNK-BP,
prompting BP to try and buy them out.
Alfa-Access-Renova (AAR), the consor-
tium that represents the oligarchs,
rejected BP’s first advance of $27-$28bn
for their half share. BP upped its offer
to around $30bn in cash and stock but
AAR was still believed to be unhappy
with the price. Any agreement would
ital. The private equity group, which
is part-owned by Sweden’s
Wallenberg family, is targeting the
first close of a €4.25bn ($6.05bn) fund
before July, several people close to the
situation told the Financial Times.
FOOTBALLER SEEKS SEARCH ORDER ON
JOURNALISTS
A footballer has asked the UK High
Court for an order to search e-mails
and text messages of journalists at
Rupert Murdoch’s News Group
Newspapers in an unprecedented
effort to see whether they breached
the terms of a so-called super-injunc-
tion concerning an alleged affair
with a reality TV star. The applica-
tion, which the court has not yet
ruled on, is likely to send a chill
through media organisations at a
time of intense debate over privacy
law and the efficacy of super-injunc-
tions. Last week, a Twitter user
named several celebrities who have
reportedly taken out super-injunc-
tions.
executive team.
They also came up with the master-
stroke, sure to be followed in future
floats of this sort of size, of signing up
strategic cornerstone investors who
were happy to take up to a third of the
new shares on offer and promise not
to sell them for up to six months.
That’s quite something for funds that
are often short-termist in their invest-
ment behaviour (and even if they
aren’t they generally prefer the choice
of staying in or selling out).
As Peter Davey, an analyst at
Standard Bank and a sceptic at the
beginning of the discussions over the
Glencore float, said yesterday: “That
gave other investors the feeling of
comfort they needed.”
Davey might still not be a convert
to all the Glencore hype but he, like
the rest of us, can see why it is looking
like a flotation success.
The cornerstone investors’ commit-
ment to hang on for six months
regardless of external events was fol-
lowed by up Glencore chief executive
ultimately have to be agreed by the
Russian government – Rosneft’s owner.
But a source familiar with the bil-
lionaires’ thinking said price was not a
major issue, but rather that BP and
Rosneft had not been able to meet
AAR’s demand for big equity stakes in
each company. The sources said that
talks could continue beyond the dead-
line, although the expiry of the original
deal raises the possibility that Rosneft
could seek to redraft the terms. Since
the agreement was penned, Rosneft’s
shares have risen and BP’s fallen.
BP declined to comment last night.
BP chief Bob Dudley, the
architect of the Rosneft
pact, will have to put his
Russian arctic ambitions
on hold for now
SAATCHI SHARES PLAN WOULD COST
CITY £1BN
The City will miss out on £1bn of fees
if the Government agrees bank pri-
vatisation as recommended yesterday
by Lord Saatchi and other influential
Conservatives. The Centre for Policy
Studies think-tank, chaired by the
Tory peer, has urged the coalition to
shun a normal sale of its shares in
RBS and Lloyds and instead give them
to every taxpayer in the country. The
novel approach would bypass the
investment banks.
BE AT ONE IS SEEKING ORDERS FROM
INVESTORS
Three former TGI Friday’s bartenders
have appointed advisers to seek pri-
vate equity backing for a rollout of
their chain of London cocktail bars.
Be At One, which has ten bars in the
capital, wants to double its number
of sites in London.
Ivan Glasenberg, who vowed not to
sell a share while he is with the firm.
Whether his commitment was a
prerequisite of the cornerstones’ lock-
up agreement is unclear but it would
certainly have helped them make
their decision.
So we head towards the final
hours – pricing is tomorrow – with a
price that will be pitched to look rea-
sonable and hence encourage a
healthy market.
Yesterday it emerged that the advis-
ers are sharpening the price range,
taking it a bit higher at the lower end.
It will be priced to get off to a good
start, and it has an order book that is
several times oversubscribed.
In the circumstances, that is an
incredible achievement and a major
boost to London’s reputation for
pulling such deals off. Then the argu-
ments will rage about whether this
represents the top of the commodi-
ties cycle and whether this is the last
deal of its kind for the sector.
david.hellier@cityam.com
Chris Huhne has denied he asked someone else to take points for speeding
Huhne welcomes police
POLITICS
▲
BY RICHARD PARTINGTON
EMBATTLED government minister
Chris Huhne has denied allegations
that he asked someone else to take
his penalty points for a speeding
offence, as pressure on his cabinet
position intensifies.
The claims that Huhne lied about
speeding offences are now set to be
the focus of a police investigation.
“All I want to say is that these alle-
gations are simply incorrect,” he
TATE & LYLE IN ETHANOL LEGAL
DISPUTE
Tate & Lyle, the UK ingredients busi-
ness, is embroiled in a £100m-plus
legal row in the US courts following a
contract dispute with a British suppli-
er. The FTSE 250 company sued
London-based Whitefox Technologies
which in turn launched its own
£100m counter-claim. The legal battle
could be heard in the US courts later
this year presuming the two parties
cannot reach an earlier settlement.
RUSSIAN POLICE ESCALATE CASE
AGAINST WILLIAM BROWDER
Lawyers for William Browder, chief
executive of UK-based hedge fund
Hermitage Capital Management, yes-
terday strongly attacked Russian
police for the “flagrant misuse of the
criminal justice system” in attempt-
ing to summon him to Moscow for
questioning.
CITYA.M. 17 MAY 2011
NEWS | IN BRIEF
Goldman shuffles executives
Goldman Sachs has picked a third co-
chief of investment banking to help
ramp up its efforts in this branch of the
business, the firm told employees yester-
day. London banker Richard Gnodde will
take up the role, while the bank’s current
global head of M&A, Gordon Dyal, will
become co-chairman of investment
banking. The reshuffle is part of
Goldman’s plans to draw in more busi-
ness from outside of the United States,
chief executive Lloyd Blankfein told staff
in a memo.
Soros dumps most of his gold
Billionaire investor George Soros’s hedge
fund dumped most of its gold holdings
during the first-quarter, well ahead of
the recent commodities sell-off, a regu-
latory filing showed yesterday. Soros
Fund Management, based in New York,
owned 49,400 shares of the SPDR Gold
Trust at the end of March, down from
4.7m shares held at the end of
December. A 5m share stake in the
iShares Gold Trust at the end of
December disappeared completely from
the latest filing with the US Securities
and Exchange Commission.
Picture: PA
said yesterday.
“They’ve been made before and
they’ve been shown to be untrue, and
I very much welcome the referral to
the police as it will draw a line under
the matter.”
He added: “I think the police can
get to the bottom of this.”
Downing Street earlier said that
Prime Minister David Cameron had
given the energy secretary his “full
confidence”. Huhne’s political oppo-
nents are calling for him to stand
down from his government post.
HEDGE FUND BOOSTS STAKE IN EL
PASO
Hedge fund Jana Partners LLC said it
expanded its stake in El Paso Corp. to
just over 4 per cent, in what many
viewed as an effort to help force the
natural-gas provider to break up.
Investors have been pressuring El
Paso, which operates disparate divi-
sions including exploration and
pipelines, to sell parts of its business.
Management has said it would con-
sider restructuring.
WAL-MART BALKS AT HURDLE TO DEAL
In the latest obstacle to a deal, Wal-
Mart Stores yesterday threatened
to walk away from a proposed $2.4
billion merger with South African
retailer Massmart Holdings if pro-
curement conditions are imposed
after recommendations by the
country’s competition commis-
sion.
CITYA.M. 17 MAY 2011
GOOGLE SEARCHES BOND MARKET FOR INVESTORS
Banks are on
track to miss
Merlin target
▲
BANKING
BY MARION DAKERS
THE TREASURY yesterday gave its
support to the UK banks involved in
the Merlin agreement, despite pre-
liminary figures showing that the
banks are on course to miss targets
for lending to businesses.
Figures collated for the Bank of
England by accountants at
PricewaterhouseCoopers suggest
that since the Project Merlin deal
was made between the government
and the banks in February, lending
to small businesses has fallen short
of a £19bn quarterly target.
HSBC, Barclays, Lloyds Banking
Group, Santander and Royal Bank of
Scotland have lent out around
£16.8bn between January and the
end of March, according to the
Bank’s statistics.
Overall business lending has
come closer to the Merlin bench-
mark during the last three months,
with the five institutions doling out
around £47.2bn compared with an
expected quarterly rate of £47.5bn.
The Merlin deal set out annual
lending targets in a bid to improve
transparency in the banking sector,
Betfred to lay out the details of
£200m offer for Tote bookmaker
▲
LEISURE
ONE OF the bidders for the Tote book-
maker will unveil details of its offer
this morning, in an attempt to con-
vince stakeholders of its suitability.
Bookmaker Betfred will announce
today that it will bid almost £200m
for the government-owned betting
chain, and will earmark an additional
£11m payment this year for the rac-
ing industry, a person close to the
deal confirmed last night.
This subsidy will remain in place
for several years afterwards, but will
fall in value slightly in subsequent
years.
News 3
GOOGLE hit the US
bond market yes-
Glencore narrows
float price range
terday, selling $3bn
of three, five and
ten year notes to
help repay shorter-
term debts and
fund operations.
The internet giant,
fronted by Eric er price range of 520p-580p.
▲
CAPITAL MARKETS
Schmidt (pictured), BY JULIET SAMUEL Analysts suggested on Friday that
hired Citigroup, Glencore could see its credit rating
Goldman Sachs GLENCORE has narrowed the price upgraded by S&P after a float. Miriam
and JP Morgan to range for its $11bn (£6.8bn) float at the Hehir of RBC Capital Markets, which is
run the sale of the higher end of its range, despite a crash not on the deal, also said: “Moody’s
bonds, which gar- in commodity prices last week. negative outlook... continues to look
nered an Aa2 rat- The commodity trader began its out of date.” Hehir also estimates that
ing from credit investor roadshow with a 480p-580p Glencore will put $2bn towards paying
agency Moody’s. price range, the midpoint of which val- back its most expensive, seven per cent
ues the company at around $60bn. debt after its planned buyout of
However, it is now targeting a narrow- Kazzinc, leaving $5.3bn for expansion.
though the tallies from the latest
quarter are the first indication of
how the banks are living up to this
element of the Project Merlin com-
mitments.
A Treasury source said yesterday
that while the figures had not yet
been finalised, “it is encouraging
that the banks are broadly on track
to meet the stretching £190bn tar-
get that was only agreed half way
through the quarter”.
The firms said in February they
were able to lend £190bn during the
year, £76bn of which was to go to
smaller businesses.
“It will be disappointing if the
numbers show that, within the
overall total, lending to SMEs is
behind schedule, but it is still early
days.”
The final figures are due to be
released by the Bank next week, as
part of the banks’ commitment to
hand over quarterly lending statis-
tics under the Merlin agreement.
The figures will form part of the
performance targets used for top
executives at the UK’s biggest banks.
Industry group the British
Bankers’ Association was unavail-
able for comment last night.
The value of the bid is still around
half the price tag put on Tote by the
Labour government when it tried and
failed to sell off the firm several times
throughout the lifetime of the gov-
ernment.
Other contenders to take over Tote
from the public purse include Sir
Martin Broughton’s Sports
Investment Partners, which is report-
edly making a joint offer with two for-
mer Ladbrokes executives and broker
Cenkos.
The rival consortium was given the
blessing of racing industry leaders
last week, prompting Betfred’s
announcement.
 4 News
Boots UK sees
slow sales as
KKR stays on
▲
RETAIL
BY JOHN DUNNE
ALLIANCE Boots yesterday warned of
a slow UK market compared with its
international performance, and con-
firmed that investor Kohlberg, Kravis
& Roberts (KKR) will be staying on
board.
Boots UK – the group’s main
health, beauty and pharmacy chain
in Britain – reported a like-for-like
sales increase of 0.5 per cent in the
year to 1 March, while its opticians
stores recorded a 2.5 per cent
underlying revenue decline.
These translate into a like-for-
like sales increase of 0.4 per cent
across Boots UK stores.
Alliance Boots as as
a whole posted a 14.2
per cent rise in trading
profit to £1.05bn.
Stefano Pessina,
executive chairman
(right), said the
tough conditions
look set to persist.
“Looking to the year ahead, we are
planning for consumer demand to be
subdued and expect governments to
continue to seek ways to contain
growth in healthcare expenditure,”
he said.
Alliance Boots was taken private for
£11bn in 2007 by KKR and Pessina in
what was Europe’s biggest leveraged
buyout at the time. The company yes-
terday dismissed any talk of a float in
the near future. “We believe
that there’s quite a lot more
that we can still do as a pri-
vate company,” it said. Nick
Bubb, retail analyst at Arden
said: “The money is to be
made in the wholesale phar-
maceutical business,
that’s where
Alliance Boots is
doing well.The
UK is more or less
flat.”
Net debt
was reduced
by £546m
to £7.84bn.
CITYA.M. 17 MAY 2011
H&M SALES LIFTED BY THE SUNSHINE NEWS | IN BRIEF
JC Penney’s cost-cutting pays off
JC Penney reported a higher quarterly
profit yesterday as it benefited from
increased sales of its exclusive merchan-
dise and cost-cutting. The department
store operator raised its full-year profit
forecast, sending its shares up six per cent.
Penney reported that first-quarter net
income rose 6.7 per cent to $64m
(£39.4m) from $60m. In recent years the
retailer tried to turn itself into a more
fashionable retailer. It has also sought to
control costs by changing the way it man-
ages inventory and shuttering weaker
businesses such as its catalogue operation,
which it is winding down.
HMV sets out worst case scenario
Embattled retailer HMV has secretly
warned that it could make as little as £3m
in profits within two years. A report pre-
pared by the music chain’s creditors show
that, if it sells its Canadian arm and
Waterstone’s, its core profitability could
dramatically slip. The worst case scenario
report sits in stark contrast to its £30m
predicted profits this year. HMV is cur-
rently in talks with Russian billionaire
Alexander Mamut over the sale of its
Waterstone’s chain.
Urban Outfitters sees sales rise
US-based retailer Urban Outfitters posted
a rise in its first-quarter revenue that beat
market estimates last night, helped by
higher sales at its direct-to-consumer and
wholesale segments. Shares of the opera-
tor of Urban Outfitters, Anthropologie,
Free People and Terrain stores rose three
HOT weather in key European markets and an Easter holiday helped Swedish budget per cent in after-hours trading. The com-
fashion chain Hennes & Mauritz post its biggest rise in sales in eight months in April. pany posted net income of $39m (£24m),
The world’s second biggest-clothes retailer by sales posted an 11 per cent year-on-year rise compared with $53m a year ago. Revenue
in sales, beating forecasts. The strong April sales figure followed a five per cent drop in for the first-quarter rose nine per cent to
sales in March. $524m.
CITYA.M. 17 MAY 2011 News 5

Mary Queen of Shops KV

in high street review
CityPoint
Kidbrooke Village London SE9

RETAIL Vivienne Westwood. In 2005 Portas

▲

BY JOHN DUNNE began writing her Shop! column for

the Telegraph, and began her
RETAIL guru Mary Portas is launch- makeover series Mary, Queen of
ing a rescue campaign to save Shops in 2007. Portas has since made
Britain’s struggling high streets, after over charity shops and gone under-
being called in by Prime Minister cover to expose
David Cameron. poor customer
TV’s “Queen of Shops” wants giant service for her
supermarket chains like Tesco to Channel 4
hand over some of their profit to help series; Mary
independent shops. The manage- Portas: Secret
ment consultant has been identified Shopper.
as someone with the expertise and
personality to drive through changes
to lift retailers’ fortunes. Portas, who
has worked in retail for 30 years, will
give a full report in the department
of business, innovation and skills on

For a fast commute. For more time at home.

how to turn around the ailing sector.
Cameron said: “Her no nonsense
approach will help us to create
vibrant and diverse town centres Kidbrooke Village Sales & Marketing Suite Now Open.
and bring back the bustle to our NEWHAM
high streets.” CITY OF
LONDON
Portas started her career with a MAYFAIR
ALDGATE

Saturday job in John Lewis. Her first VICTORIA

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CANARY
full-time role was with Harrods, LAMBETH
WHARF

where she took charge of the window CHELSEA

VAUXHALL
PECKHAM
GREENWICH
displays. She then moved onto the CAMBERWELL
CLAPHAM
job of display manager at Topshop BROCKLEY BLACKHEATH

before, at the age of 30, she was DULWICH

KV
KidbrookeVillage
London Borough of Greenwich

appointed creative director at Harvey

Nichols. She drafted in younger
big-name designers such as
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▲

RETAIL
THE BRITISH Retail Consortium (BRC)
has expressed fears that a review of
the UK high street by TV’s Mary Portas
will favour independent shops at the
expense of chains.
Portas’s government appointment
tasks her with breathing new life into
across the board.
BRC director general Stephen Call 020 8150 5151
Robertson said: “Independents are a
vital part of an attractive retail mix Kidbrooke Village. For London. For everyone.
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 6 News CITYA.M. 17 MAY 2011

EU: New Greek rescue will

not mean restructuring debt
doesn’t have the same consequences.” borne equally by the IMF, the 27-nation
▲

EUROZONE
BY JULIET SAMUEL
IN THE clearest sign yet that Europe is
preparing for a second Greek bailout,
an EU spokesman yesterday tried to
draw a distinction between “re-profil-
ing” Athens’ debt and “restructuring”.
EU monetary affairs spokesman
Amadeu Altafaj said: “Reprofiling is
one concept, debt restructuring is a dif-
ferent concept… It doesn’t involve nec-
essarily even the same players and
His comments fuelled speculation
that Greece’s second bailout will
involve Eurozone members extending
the maturity of its rescue funds, which
consisted of a series of bilateral loans
from Eurozone members. The EU
insists that this would not constitute or
lead to a full-scale restructuring or
default.
The speculation on Greece came as
European finance ministers approved
Portugal’s €78bn bailout, which will be
EU bailout mechanism and the 16-
nation Eurozone bailout facility. The UK
will underwrite Lisbon’s rescue to the
tune of €4.81bn through its five per cent
contribution to the IMF and its 13.5 per
cent EU bailout fund contribution.
The summit proceeded without the
scheduled attendance of IMF chief
Dominique Strauss-Kahn, who also
missed a meeting with chancellor
Angela Merkel due to being charged
with attempted rape in New York.

Strauss-Kahn was
led from court in
handcuffs yester-
day.
Picture: REUTERS

New claims of
sex crimes hit
Strauss-Kahn
▲

EUROZONE
BY STEVE DINNEEN
DOMINIQUE Strauss-Kahn cut a grim
figure as he stood before a New York
court, and the world’s TV cameras, to
deny charges of sexual assault and
attempted rape of a New York hotel
maid.
Dressed in a black jacket, the 62-
year-old remained silent as he was
denied bail by the US judge. He was
deemed a flight risk, despite his wife
offering to put up $1m (£617,000) in
bail money. His lawyer, Benjamin
Brafman – who has represented
Michael Jackson – argued that Strauss-
Kahn is “the most easily identifiable
individual in the world today,” adding
“there is no indication, nothing, that
he intends to flee.”
Across the Atlantic in Paris, a second
woman accused the embattled IMF
chief of attempted rape, relating to an
incident nearly a decade ago. Tristane
Banon, the 31-year-old god-daughter of
Strauss-Kahn’s ex-wife Brigitte
Guillemette, said she was attacked
after being granted an interview with
the politician when she was a young
journalist.
Strauss-Kahn will now remain in
custody until he faces the jury that
could lock him up for 25 years.
Prosecution lawyers argued that the
unnamed maid provided a “very pow-
erful and detailed account” of the
alleged attack. They also claimed foren-
sic evidence corroborated her story.
Details were not provided but it is
known Strauss-Kahn underwent med-
ical tests while under police custody.
He faces seven charges relating to
the alleged incident.
The maid says Strauss-Kahn carried
out a “brutal” sex attack when she
entered his £1,900-a-night hotel suite.
When she let herself into the room she
says Strauss-Kahn ran naked towards
her and sexually assaulted her before
dragging her into the bathroom,
where he attempted to rape her. She
says he attempted to lock her in the
room as he fled the hotel.
Lawyers in France have questioned
the chain of events, claiming Strauss-
Kahn had left the hotel an hour earlier
to meet his daughter for lunch. They
said he then called the hotel when he
realised he had forgotten his mobile
phone.
In a bizarre twist, just weeks earlier
the IMF boss gave an interview to a
French newspaper, where he hinted he
may be the victim of a “honey-trap” in
which his political enemies might
bribe a woman to say she was raped.
He also said the three main chal-
lenges he faced were “money, women
and my Jewishness.”
CITYA.M. 17 MAY 2011
French finance minister Christine Lagarde
The contenders for the IMF job
With Strauss-Kahn’s tenure all but over,
attention has turned to his successor. Steve
Dinneen looks at some of the favourites
WHILE the IMF has not yet received a
resignation from Dominique Strauss-
Kahn, it is almost certainly only a mat-
ter of time. But with the IMF going
through some of the most complex
negotiations it has ever been involved
in, the appointment of a strong leader
to steady the ship will be a priority.
French finance minister Christine
Lagarde has been picked out as an
early favourite. She has thus-far
declined to make any comment on
Former Prime Minister Gordon Brown
the top job or the arrest of its incum-
bent leader.
Her credentials are strong and, like
Strauss-Kahn, she has a vested interest
in holding the Eurozone together,
which would help to calm the nerves
of the likes of Greece and Portugal.
However, many observers would like
to see someone from an emerging
market take the job – France has held
it for 26 of the past 33 years – as a sig-
nal it has grasped the shift in global
Central Bank of India chairman S Sridhar
power.
Acting managing director John
Lipsky is seen as a credible candidate
but has already said he plans to
resign. His US passport would also
count against him, with tradition dic-
tating an American usually takes the
World Bank job instead.
Gordon Brown may still hold a
shred of hope, but David Cameron
appeared to dash his plans to take the
reins at the organisation, hinting he
would veto the appointment, which
he said was inappropriate given
Brown’s involvement in the UK’s eco-
nomic crisis.
If an appointment came from out-
side Europe, Indian Central Bank
chairman S Sridhar would be an obvi-
News 7
South African minister Trevor Manuel
ous choice, having gained plaudits
nationally and abroad. His country-
man Montek Singh Ahluwalia, deputy
chairman of the Indian planning
commission, is also seen as having a
real chance.
South African Trevor Manuel, a for-
mer finance minister and currently
serving as minister in the Presidency,
is also in the running.
Former Turkish economy minister
Kemal Dervis, Mexico’s central bank
governor Agustin Carstens and Bank
of Israel governor Stanley Fischer have
all been linked with the post.
So far, candidates have been cau-
tious – nobody wants to be caught
dancing on Straus-Kahn’s grave quite
yet. This will soon change.
 8 News CITYA.M. 17 MAY 2011

BATTLE OF THE BUILDINGS

British Land
lets a third of
9
OUT OF
7
OUT OF
7
OUT OF
6
OUT OF
5
OUT OF Cheesegrater
10 10 10 10 10

▲
PROPERTY
BY DAVID CROW

BRITISH Land has pre-let a third of

its Cheesegrater skyscraper to insur-
ance company Aon, giving it a head-
start in the race to secure tenants
before a glut of new office space
comes to market in 2014.
The US-based insurer is leasing the
10 lower floors in the 47-storey
Leadenhall Building, equivalent to
191,000 sq ft out of a total of 610,000
sq ft, and has an option of a further
five floors. It will move in when the
building is completed in 2014.
Industry sources said that Aon was
1
OUT OF
paying around £55 per sq ft and
some suggested British Land and

The Walkie Talkie Pinnacle

10 venture partner Oxford Properties

Cheesegrater
Developer: British
Land and Oxford
Properties
Completed: Due 2014
Has done remarkably
well to pre-let space
to Aon at this stage,
although some ana-
lysts think it could
have got more than
£55 per sq ft if it had
waited a little longer.
A Daimler Brand
The Shard
Developer: Sellar
Completed: Due May
2012
With around a year to
go until completion,
the Shard still hasn’t
pre-let any office
space. But the devel-
opers won’t have any
trouble drumming up
interest in such an
iconic building.
Heron Tower
Developer: Heron
Completed: March
2011
Has pre-let around 20
per cent of its office
space, with industry
sources suggesting it
has secured an rate of
£55 per sq ft. Will be
glad to have complet-
ed before Pinnacle
and Walkie Talkie.
Developer: Land
Securities and Canary
Wharf
Completed: Due 2014
Another building that
will come to market
in 2014, the develop-
ers will surely be
smarting after losing
out on the Aon deal
to arch rival British
Land.
Developer: Arab
Investments
Completed: Due 2014
Hasn’t found a tenant,
which means it has to
go back to its
investors for extra
funds to continue con-
struction. Will face
stiff competition from
the Cheesegrater and
Walkie-Talkie.
The Walbrook
Developer: Minerva
Completed: February 2010
Having stood empty for over a year
now, the Walbrook is definitely the
laggard of the bunch. We’ve heard
that its insistence that tenants take
on a 15 year lease, which the banks
are asking for, is putting prospective
companies off.
had been hoping for a higher rate.
British Land’s shares dipped slightly,
closing down 2p at 582.5p
But some analysts think predic-
tions of City rents as high as £70 or
£80 per sq ft are wide of the mark
and said the property developers had
done well to sign a tenant at this
stage in the building’s development.
John Cahill, an analyst at
Evolution Securities, said: “There’s
an awful lot of supply coming on to
the market at the moment, and I’m
not convinced there is huge demand.
Some talk of rents around £70 per sq
ft but I don’t see it happening.”

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CITYA.M. 17 MAY 2011 News 9

Wood Group returns £1bn

625p per share, representing a dis- from mature fields to US conglomer-

▲
ENERGY
BY HARRY BANKS
OIL SERVICES provider John Wood
Group said yesterday it will buy back
shares to return the £1.05bn prom-
ised to shareholders from the sale of
its well support division.
The company said it will purchase
up to 32.1 per cent of Wood Group’s
Allister Langlands, Wood Group chief executive, said he will return £1.05bn to investors shares within a price range of 605p-
count of 6.1 per cent to three per cent
to Friday’s closing price.
The firm’s shares were flat yester-
day, closing at 644p to value the com-
pany at £3.4bn.
Wood Group, whose customers
include BP and Royal Dutch Shell,
said in February it intended to return
cash to shareholders after it sold a
unit that helps boost oil recovery
ate General Electric for about $2.8bn
(£1.7bn).
The proceeds of the tender offer
will be returned to shareholders by 7
June.
If any of the full £1.05bn is not
returned to shareholders through the
tender offer, the company said it
would return any remaining balance
via a separate, later B share scheme.

Shell agrees Kazakhmys

20-year deal plans Hong
with Taiwan Kong listing
▲

ENERGY
BY HARRY BANKS
ROYAL Dutch Shell said yesterday it
has signed an agreement to supply
Taiwan’s CPC Corp with 2m tonnes
of liquefied natural gas (LNG) per
year for 20 years.
“This is the first long-term LNG
deal between Shell and CPC. The
agreement will see Shell become one
the main suppliers of LNG to
Taiwan,” the company said in a state-
ment.
Shell declined to comment on the
value of the pact, citing company
policy, but said it was competitive
and linked to oil prices, typical in
the Asia Pacific basin.
The deal is not linked to any specif-
ic project and Shell will supply the
LNG starting in 2016 from its global
LNG portfolio, spokeswoman Lina
Yap-Abdullah said.
The firm said the specifics of the
long-term supply deal will be
released over the coming months.
Shell has several LNG projects in
Australia starting up around 2016
when the CPC supply contract takes
effect.
Shell also has interest in various
LNG projects that supply Asia includ-
ing Brunei LNG, Malaysia LNG Dua,
Malaysia LNG Tiga, and Russia's
Sakhalin II.
Shell’s London-listed shares closed
down 0.4 per cent at £21.42.
ANALYSIS l Royal Dutch Shell 'A'
2350 2141.50
p p
16 May
2300
2250
2200
▲
MINING
BY HARRY BANKS
KAZAKHMYS, the world’s 10th largest
copper miner, said yesterday it plans
to complete a secondary listing in
Hong Kong by the end of June, a move
that will boost its presence in China –
the world’s biggest copper importer.
The company said it has filed a
prospectus with the Hong Kong Stock
Exchange, and added that it will con-
sider issuing new shares to assist liq-
We’d rather talk about uidity.
“This secondary listing will provide
the company with an additional
channel to raise capital in the future
and gain access to a wider range of
institutional and retail investors,”
Kazakhmys said in a statement to the
stock market.
“The listing will enhance the com-
pany’s profile in China and in Asia
generally and thereby benefit the
company’s long-term growth and
cost savings than cloud computing development,” it added.
In October, the company said a list-
ing in Hong Kong would be “natural”
since the region is important for the
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21 Feb 11 Mar 31 Mar 20 Apr 16 May 21 Feb 11 Mar 31 Mar 20 Apr 16 May

Cranswick sausage and bacon sales sizzle Xchanging shuts offices

sumer, along with rising raw material per cent. eter first quarter had been solid.
▲

CONSUMER SUPPORT SERVICES

BY HARRY BANKS
PORK supplier Cranswick yesterday
posted an eight per cent rise in full-
year pre-tax profit and raised its final
dividend by 10 per cent.
However, the company, which sup-
plies fresh pork and gourmet
sausages, said it expected a tough
year ahead.
“The difficulties facing the UK con-
prices and the dynamics of the com-
petitive market in which the compa-
ny operates suggests that the year to
March 31, 2012 may be more demand-
ing than usual,” chairman Martin
Davey said in a statement.
For the year ended 31 March,
Cranswick’s pre-tax profit rose to
£47.1m from £43.8m last year.
Underlying sales grew four per cent
to £758m on volumes that were up six
Cranswick declared a final divi-
dend of 18.7p, making a total for the
year of 27.5p, an increase of 10 per
cent on last year.
The company also appointed Adam
Couch, managing director of its fresh
pork business, as its chief operating
officer.
Shares in Cranswick rose 2.2 per
cent to close at 783.5p yesterday, valu-
ing the firm at £362.8m.
STRUGGLING outsourcing firm
Xchanging reported solid trading
since January yesterday amid an over-
haul of its business, and said it
expected revenue improvements in
the second-half of the year.
Xchanging plans to close its West
End office and move its staff to its
Leadenhall Street office as part of the
overhaul, but said its seasonally qui-
The back-office services supplier
said its financial services and insur-
ance businesses, excluding its US
operation, had performed slightly
ahead of its expectations.
“Since announcing our four-part
action plan at the time of our prelim-
inary results we have been very active
and have made good progress,” said
acting chief executive and finance
chief Ken Lever.
 10 News CITYA.M. 17 MAY 2011

Rival TMX bid

MEET THE ADVISERS

JOHN TUER

could poach
SCOTIABANK

EACH bank involved in the Maple bid for

LSE’s advisers TMX has a team of M&A bankers work-

ing on its proposed takeover.
John Tuer is leading the advisory for
Scotiabank, the second largest bank
involved in the bid.
Bill Quinn is the lead adviser from TD
Securities, the largest Canadian bank on
the bid.
▲

CAPITAL MARKETS not face protectionist rules that have

BY RICHARD PARTINGTON
ROYAL Bank of Canada, one of the
London Stock Exchange’s advisers for
its agreed merger with Toronto bourse
operator TMX, could be poached by
the rival bidder threatening to derail
blocked foreign bids for Canadian
firms, such as BHP Billiton’s pursuit of
Potash Corp last year. But analysts yes-
terday warned that the group could
fail competition laws.
“[It] might create issues around
monopolistic and anti-competitive
LSE chief Xavier Rolet is hoping to tie up the deal
Paul Spafford and Frank Ord are
advising from CIBC, whilst Craig
McDougall is on the deal from National
Bank of Canada.
Picture: Micha Theiner/City A.M.

Rolet must bring home Canadian bacon

the LSE’s plans.
Luc Bertrand, the chief of the Maple
consortium of banks mounting a rival
offer, said he would approach Royal
Bank of Canada. “For obvious reasons
we haven’t spoken to [RBC]… I imagine
in due course we will,” he said.
He said he would also approach
Bank of Montreal, which is advising
TMX.
Any bid for the Toronto Stock
Exchange operator involving the advis-
ers to the London Stock Exchange deal
would be an embarrassing develop-
ment for the architects of the agreed
tie-in.
Meanwhile, Canadian regulators are
facing tough choices over the future of
the Toronto Metals Exchange.
Unlike the LSE, the Maple bid would
structures, in that the combined enti-
ty would control the vast majority of
exchange transactions in Canada and
pricing power would be firmly
entrenched,” said Darryl Levitt, a THE LONDON Stock Exchange (LSE) are likely to plump for Maple. beef up to deter prospective buyers in
mergers and acquisitions expert at might want to pretend it is business If the LSE really believes it can the flurry of stock exchange M&A
Macleod Dixon. as usual, after a rival consortium achieve £100m of synergies, then it deals.
bested its offer for the Toronto Metals could outbid Maple and still create Before the TMX deal, the LSE was
ANALYSIS l London Stock Exchange Group Exchange (TMX). shareholder value. Such a bid would vulnerable as a takeover target. If
940
p
But the truth is the bid from the no longer be a merger of equals, how- Rolet fails to bring home the
920
884.00 Canadian banks and pension funds ever, and so could hit regulatory hur- Canadian bacon, it will become a tar-
16 May that make up the Maple group dles. get once again.
900
changes everything. Although there is some strategic That mightn’t be so bad for share-
880 There is a chance that TMX share- sense to an LSE/TMX merger – it will holders, especially if the buyer offers
860 holders will still stick with the LSE create the number one exchange for a tidy premium.
840
offer, especially if they think the mining listings – Rolet’s bid for his
£100m of revenue synergies can be Canadian rival was always a variation
820
800
achieved. If they share our concerns
that the target is too optimistic, they
on the classic “fat man defence”.
He knew that the LSE needed to
BOTTOMLINE
21 Feb 11 Mar 31 Mar 20 Apr 16 May
Analysis by David Crow
CITYA.M. 17 MAY 2011 News 11

WOULD YOU TRUST SONY WITH YOUR DETAILS AFTER

THE PLAYSTATION HACK? Interviews by Phoebe Torrance and Scarlett Archer
ASHLEY STEPHENS | ACCENTURE
Treasury hit by cyber attacks

▲
TECHNOLOGY
“Yes. What happened has really harmed its BY STEVE DINNEEN
image and the reputability of the institution,
THE UK Treasury is subjected to sus-
but I think that it is something it can come tained, malicious cyber attacks from
back from because I can imagine that its foreign intelligence agencies, accord-
ing to chancellor George Osborne.
security will now increase a huge amount.” An average of at least one “serious
and pre-planned” attack is launched
every day, with some 20,000 virus
JAMES BLANCO | LLOYDS INSURANCE and spyware attacks taking place
each year.
Osborne yesterday, speaking at
“I would be very reluctant to, as I wouldn’t Google’s Zeitgeist conference, gave
want my information to get into the wrong an example of an attack that repli-
cated an official email but swapped
hands. I believe that Sony will be able to the attachment for a programme
bounce back but it will be a long process of
rebuilding trust.”
designed to steal information. He
said:
“To the recipient it would have
looked like the attachment had been
sent twice... Fortunately, our systems
identified this attack and stopped
it.”
Osborne last year earmarked
£650m for a new national security
programme, aimed at holding back
the rising tide of digital crime. A
major security breach struck the
French finance ministry ahead of
the G20 summit, with Chinese hack-
ers suspected. The UK foreign office
was also hit by a successful attack
earlier this year.
Japanese computer giant Sony suf-
fered one of the biggest online secu-
rity breaches ever last month, when
hackers stole information – includ-
ing some credit card details – from
around 100m customers.
Its PlayStation Network gaming
and entertainment hub was partially
restored over the weekend after
weeks offline, causing massive dam-
age to the firm’s reputation.
Yesterday it emerged hackers used
Amazon’s Elastic Computer Cloud,
or EC2, to mount the attacks.
It has raised questions about the
safety of services like EC2 that allow
anonymous use of servers.

ROB MARSHALL | RK HARRISON GROUP

“Not at the moment; it will take a long
time for Sony to regain people’s trust
with all the damage that has been done
to its image. It doesn’t have a choice but
to tighten up the security and prove
itself.”
 12 News
Autonomy in
£234m cloud
acquisition
▲
TECHNOLOGY
BY STEVE DINNEEN
AUTONOMY yesterday crashed into
the cloud computing market with
the £234m acquisition of Iron
Mountain’s digital archiving busi-
ness.
The deal adds six petabytes – a mil-
lion billion bytes – of data and 6,000
clients to Autonomy’s total customer
base of more than 25,000 users.
Autonomy said annual cost syner-
gies should hit £25m over the first
year and add 15 per cent to earnings
from 2012.
While analysts have welcomed the
acquisition – a Goldman Sachs note
called it a “positive step” at a “rea-
sonable valuation” – some commen-
tators were disappointed at the lack
of a big name deal.
Autonomy is sitting on an acquisi-
tion war chest of almost £700m,
with investors keen to see a big-
money purchase.
Companies are increasingly seek-
ing to switch to cloud platforms, in
which data and applications are
stored on remote servers and
accessed over the web. They offer
increased flexibility and reduce cap-
ital expenditure on hardware.
Autonomy saw its shares surge
seven per cent in early trading yester-
day, before they dropped back to end
up around 2.7 per cent higher at
1,780p.
Chief executive Mike Lynch said
the acquisition “makes Autonomy
the cloud platform of choice,”
adding he had been eyeing Iron
Mountain “for a long time”.
ANALYSIS l Autonomy Corporation
1780
p 1780.00
16 May
1700
1650
1600
1550
1500
1450
21 Feb 11 Mar 31 Mar 20 Apr
CITYA.M. 17 MAY 2011
Strong second
half boost for
Pinsent Masons
LEGAL SERVICES
▲
CITY law firm Pinsent Masons has
reported a three per cent rise in
turnover for 2010-11, reversing the four
per cent fall it saw last year thanks to a
strong second half performance.
“The figures were flat at the half-
Autonomy chief executive Mike Lynch Picture: Micha Theiner/CITY A.M. year stage,” managing partner David
Ryan told City A.M. “So all the growth
ANALYST VIEWS: WHAT DOES THE PURCHASE was in the second half of the year.”
Ryan pointed to a particularly
MEAN FOR AUTONOMY? Interviews by Steve Dinneen strong performance in the firms’ cor-
porate and international arbitration
practices, but said that even pressured
DAVID TOMS | NUMIS sectors like real estate had held up well
“
since 2010.
The rise in revenue from £206m in
”
The long-awaited acquisition has finally been achieved, management 2009-10 to £213m this year means the
are guiding to 15 per cent earnings accretion in 2012 against a consensus firm is back to pre-recession turnover
number that is already around 10 per cent ahead of our forecasts. levels, helped by its work advising
Regal Petroleum on its cash offer by
Energees Management for 70 per cent
GEORGE O'CONNOR | PANMURE GORDON of Regal.
“
Pinsent Masons is the biggest UK
law firm to publish its turnover figures
”
A match made in pragmatism. It is not ‘the one’, but the Iron Mountain during the early-May reporting round,
asset acquisition should not be construed as being second best. It has the
having retained its spot as the 14th
opportunity to drive significant profitability by chasing down costs. largest firm in the country after 2010’s
results. Like many of its peers, it will
JAMES CRAWSHAW | S&P release profitability figures – includ-
“
ing profit per equity partner (PEP) – in
six to eight weeks time once the
”
This positive development follows strong first-quarter results, which results are confirmed. Last year, the
showed sales growth accelerating to 13 per cent, with organic core firm posted PEP of £410,000, up 32 per
16 May
growth of 19 per cent. cent from the previous year.
 14 News
Alliance Trust
share buying
reaches £41m
FUND MANAGEMENT
▲
BY ALISON LOCK
ALLIANCE Trust has bought back
£41.2m of stock this year in a marked
change of strategy since coming
under fire from activist shareholders,
one of its brokers said yesterday.
Alliance has bought shares 20 times
since February in a bid to appease
hedge fund Laxey Partners, which
wants the trust to adopt a formal sys-
tem of using buybacks to keep its
share price at a maximum of ten per
cent below its overall net asset value.
But Charles Cade, head of invest-
ment companies research at
Alliance’s broker Numis, warned that
in the long-term such a discount con-
trol mechanism “could lead to a sig-
nificant shrinkage of the fund’s
capital, which would have implica-
CICC hopes to
sew up money
drive this month
▲
INVESTMENT BANKING
CHINA International Capital Corp
(CICC) hopes to finish the first
tranche of its 5bn yuan (£473m)
money-raising drive by the end of the
month.
CICC, China’s first joint venture
investment bank, aims to use the
cash to fund domestic takeovers.
The bank was set up in 1995 with a
view to becoming a China-based inter-
national investment bank, and has
registered capital of $125m (£77m). It
has so far helped Chinese firms raise
$150bn in equity.
tions for its resources.”
Despite the buybacks, a Laxey
spokesman told City A.M. it would
press for a new fund manager to take
control of the trust if shareholders do
not pass its resolutions at Friday’s
annual meeting. “If we find that we
have significant shareholder support
but not enough votes for the resolu-
tions to be accepted, we would take
steps to see whether the contract
should be put out to a beauty parade
to other managers,” he said.
John Newlands, research head at
four per cent shareholder Brewin
Dolphin, said raising the share price
may cause more holders of the stock
to sell out, creating a need for larger
buybacks. “The great question that
remains is how long and how large
these buybacks will have to be to
reduce the discount?” he said.
Charles Stanley in
£2m takeover deal
FUND MANAGEMENT
STOCKBROKER Charles Stanley took
over Birmingham-based wealth man-
ager Jobson James Financial Services
in a deal worth a maximum £2.25m
yesterday.
The acquisition will grow Charles
Stanley’s presence in the Midlands
and boost its capability in wealth
management services, it said.
Founded in 1993, Jobson James is
led by managing director Richard
Venner and offers financial advisory
services including pensions, financial
and tax planning, corporate invest-
Phoenix Group Holdings chief executive Clive Bannister joined the firm in February
Phoenix cash generation
grows to £314m by April
FUND MANAGEMENT
▲
BY ALISON LOCK
PHOENIX Group, the UK’s largest
manager of closed life insurance
funds, generated £314m of cash from
its operations in the four months to
the end of April, it said yesterday.
The cash included £14m from Ignis
Asset Management and £300m from
Phoenix Life, a bundle of life insur-
ance companies including Royal &
SunAlliance Life & Pensions and
ment advice and retirement advice. It
employs 26 people.
Payment of the maximum deal
cost will be dependent on Jobson
James meeting set revenue targets
over the next two years.
Charles Stanley chairman Sir David
Howard described the deal as a “high-
quality acquisition” that “comple-
ments the expanding activities of
Charles Stanley”.
Venner, who joined Jobson James
in 1997 and will remain on its board,
said: “Joining Charles Stanley is a nat-
ural fit for the company.”
Abbey National’s life business.
The sum was a 16 per cent rise
from the £270m made in the same
period in 2010, when it saw £9m
inflows from Ignis and £261m from
its life companies, it said in its inter-
im management statement.
New chief executive Clive Bannister
said he was confident the company
could deliver its “challenging” target
to generate £750-850m in cash by the
end of 2011. Phoenix managed £67bn
of assets at the end of April.
Equitable Life savers to
start receiving payments
▲
INSURANCE
SAVERS that lost their money in the
collapse of life and pensions firm
Equitable Life will receive compensa-
tion payments from June, the
Treasury said yesterday.
Policyholders at the firm will share
£1.5bn from the government after a
ten-year battle to recoup savings lost
when the firm collapsed in 2000.
The repayment scheme will be
managed by the government’s invest-
ment provider National Savings and
Investment (NS&I) and offer £775m to
about 945,000 policyholders, with
another £620m to be allocated to
37,000 with-profits annuity holders.
CITYA.M. 17 MAY 2011
Solvency II
boosts pay of
risk specialists
RECRUITMENT
▲
THE CITY is expecting a boom in hir-
ing risk experts due to regulation, in
particular the impact of Solvency II,
according to a survey by executive
search firm Kinsey Allen and the
Institute of Risk Management.
Solvency II, which imposes capital
requirements on insurers similar to
Basel III for banks, is expected to
increase the going rate for risk special-
ists by 85 per cent of the risk profes-
sionals surveyed, while 60 per cent
have already seen their pay rise over
the last year.
Two thirds expect this trend to con-
tinue, with the average expected pay
rise between ten and 25 per cent.
Respondents also said they spent an
average of half their day dealing with
the impact of Solvency II, despite 46
per cent thinking that the regulations
will not achieve their goal of de-risking
the insurance sector.
Kinsey Allen’s Loraine Silvester said:
“Risk professionals with Solvency II or
financial risk or modelling experience
are in hot demand as the big players
look to broaden their risk teams to
adapt in time.”
“This is a complex issue, but the
scheme has been designed to reflect
the principles of fairness, transparen-
cy and simplicity,” said Mark Hoban,
financial secretary to the Treasury.
Oldest policyholders will be paid
first, with savers paid £500m in this
financial year; £300m in 2012-13 and
£200m in 2013-14.
But any policies taken out before 1
September 1992 will not be compen-
sated, while around 100,000 policy-
holders will receive nothing as they
are deemed to have lost less than £10.
The government has estimated
savers’ total loss at £4.2bn but said it
cannot afford to pay that amount.
CITYA.M. 17 MAY 2011 News 15

Transport boss
DuPont wins Diamond miner bets on takes chief exec
Mellier to sparkle at top
takeover bid MINING sales of Chinese trains.
role at De Beers

▲
for Danisco
BY ELIZABETH FOURNIER De Beers’ latest hire echoes that MINING

FRENCH-BORN Mellier moves to
the number two diamond produc-
er fresh from Alstom Transport,
having been president of the
French engineering group since
2003.
He started his career at Ford in
▲
of its 45 per cent stakeholder
Anglo American, which recruited
externally for the first time in 89
years when it hired Cynthia Carroll
from Alcan in 2006.
Mellier will be based between De
Beers’ UK and
its South
▲
DIAMOND miner De Beers has hired
French transport industry boss
Philippe Mellier (see left) to replace for-
mer chief executive Gareth Penny, the
first time the South-African based firm
has looked externally to fill its top role.
Analysts say the appointment of a

M&A
BY HARRY BANKS
US CHEMICALS maker DuPont has
won its $6.4bn (£3.9bn) takeover battle
for Danisco, with 92.2 per cent of the
Danish food ingredients maker’s
shares tendered in support.
Nearly half of DuPont’s revenue will
now come from food-related sources, a
stark change for the company that
invented nylon and supplied gunpow-
der for World War One.
That transition away from the com-
pany’s traditional chemical base is
part of chief executive Ellen Kullman’s
plan to capitalise on spiking global
food demand.
“This combination will create an
industry leader in industrial bio-
sciences and nutrition and health,”
Kullman said yesterday.
DuPont had aggressively fought for
Danisco since its initial friendly offer
of 665 Danish crowns per share in
January. Some dissident shareholders
scoffed at that price, forcing DuPont to
raise its cash offer to 700 crowns last 1980 as a sales and planning ana-
month. lyst, and went on to spend 19
DuPont needed at least 90 per cent years there including stints in
of Danisco shareholders to approve the Portugal, New Zealand and
deal. Up until Friday’s deadline, it Mexico.
appeared DuPont would not reach Mellier ended his time at
that mark, meaning it would have to Ford as vice president of mar-
run Danisco as a majority shareholder keting sales & service for
on the NASDAQ OMX Copenhagen. Europe, before joining Renault
A big uncertainty was the position Trucks in 1999 and becoming
of US hedge fund Elliott Associates. It chairman and chief executive
had built up a 10.02 per cent stake in the following year.
Danisco and rejected the initial offer. At Alstom, Mellier proved a
Why Elliott accepted the final offer vociferous defendant of the com-
was not immediately clear. An Elliott pany’s interests, making a com-
spokesman declined to comment. plaint to the European
“With an acceptance of slightly over Commission about Eurostar’s use
92 per cent, this is the clearest possible of Siemens Velaro trains instead of
conclusion to the bid process you its own high-speed fleet.
could get,” Danisco chief executive Alstom failed to block the
Tom Knutzen said. deal, but Mellier remained in
DuPont said settlement of valid the headlines when he said
acceptances would take place on 19 Western countries should
May and it would “as soon as possible” counter a Chinese clamp-
initiate a compulsory redemption of down on outside suppliers
all remaining shares in Danisco and
apply for the shares to be delisted.
by closing their markets to
African non-mining specialist is indicative of a
offices. broader problem for the industry, as it
comes up against a shortfall in talent
during a boom in the sector.
“It is quite revealing about the
industry as a whole that they have
struggled for a long time to find some-
one to fit that CEO role, and then they
have come up with someone from
completely outside the industry,” ana-
lyst Andy Davidson at Numis
Securities said.
In its 2011 outlook for the sector,
professional services firm Deloitte
cited a talent deficit as one of the top
challenges facing mining firms.
The average age of mining profes-
sionals in South Africa has reached 50-
55, and though plenty of graduate
workers are entering the industry, a
gap remains in the coveted group of
30-50 year olds that would usually be
groomed for an executive role.
Major shareholder Oppenheimer
said De Beers had focused on finding
PHILIPPE MELLIER an executive with a track record of
delivering on large projects.

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 The Capitalist
16
BELSTAFF DIRECTOR ON-BRAND IN
PIRATES OF THE CARIBBEAN CAMEO
NEVER mind the drawn-out
takeover struggle by its largest
shareholder Peel Holdings – the
real action at Pinewood Studios has
been filming the next instalment of
the Pirates of the Caribbean fran-
chise, out tomorrow.
Cinemagoers hoping to catch
Pinewood’s chairman Sir Michael
Grade in a cameo in Pirates of the
Caribbean: On Stranger Tides will be
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disappointed. But look out for
Manuele Malenotti, the owner and
creative director of Italian clothing
brand Belstaff, who makes an appear-
ance in an early scene alongside
Johnny Depp and Keith Richards.
So does he play a pirate? “Of
course,” said Malenotti, pictured on
set below, who told The Capitalist it
was an honour to work at the “pres-
tigious” film studios. “It was a great
Terms & Conditions apply,
Registrations close 23rd May.
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
pleasure to be on set with [Depp
and Richards],” he said. “Johnny
Depp is the best actor in the world
at the moment.”
Belstaff, which Malenotti bought
for a private sum in 2004, has
branched out into designing the
costumes for 90 films, including
Rob Marshall’s Nine starring Daniel
Day Lewis and Robert Pattinson’s
new release Water for Elephants.
Belstaff owner Manuele Manelotti joins Johnny Depp in tomorrow’s Pirates instalment
However, that isn’t the only reason
Malenotti made the director’s cut in
the $300m production; he has also
been taking acting lessons from a pri-
vate LA coach for the past year.
Following a cameo in The Tourist
with Angelina Jolie, he has secured a
role in Bohemian Express alongside
John Malkovich, which starts shoot-
ing next month. No pirate costumes
this time though – he plays a “mod-
ern bohemian” called Gunari.
Shipshape: Malenotti on the Pirates set
PRODUCTION VALUES
MALENOTTI also revealed that his
grandfather Maleno was a well-
known movie producer in the 1950s
and 60s, working with Italian leg-
ends such as Sofia Loren.
So it is no surprise that
Malenotti’s next business venture is
an – as yet unnamed – film produc-
tion company, which he says has 15
to 20 projects in development.
The company will officially go pub-
lic in the next 20 days, when it will
announce its first blockbuster: an
adaptation of the Paulo Coelho novel
Eleven Minutes, which will start
shooting in September.
You read it here first. Just one
more question – between running
a retail business, acting and film
producing, when does Malenotti
actually sleep?
UN-VEATABLE
COMING to a health
food shop near you –
the revolutionary
new “Veatable
Bar” created by
H o w a r d
Beveridge
(right), the
CITYA.M. 17 MAY 2011
former commercial director of
Premier Foods.
After spending seven years manag-
ing British brands such as Oxo and
Ambrosia, Beveridge decided to take
matters into his own hands by
launching his own food product in
collaboration with his wife Helena.
“We were convinced we needed to
come up with something completely
new,” he said. “The question was,
what in the UK’s £65bn food market
hadn’t been thought of already?”
The result is the 50 per cent veg-
etable bar in flavours such as Thai
Sweetcorn that its makers claim has
created a “totally new food sector”.
A niche one, though, with just 150
units sold so far – rivals Innocent and
Dorset Cereals look safe for now.
GOING FOR BROKERS
BGC PARTNERS, Barclays Capital and
MF Global have already signed up to
Extrabet’s Bankers and Brokers Golf
Championship – but there are still a
few team places available for the con-
test, which culminates in a grand
final in Spain in October.
A maximum of 18 teams can enter,
and the winners of both first-round
events – to be held on 6 June at
Brocket Hall and on 1 July at East
Sussex National Golf Resort & Spa –
will qualify for the two-day final at
Antequera Golf near Malaga.
So there is a one in nine chance of
jetting off to the Costa Brava –
although The Capitalist hears some
teams have entered both events to
increase their chances. To give them a
run for their money, visit
www.banksandbrokersgolf.com.
READERS’ DIGEST
WANT to win half a case of fine South
African wine? Of course you do.
To stand a chance of securing the
premium South African vintages
donated by Vivat Bacchus, the
Farringdon restaurant
hosting this week’s
South African Wine
Festival, email the
answer to the follow-
ing question to info@
vivatbacchus.co.uk by
Friday 18 May.
The question is:
“Winemaker
Ken Forrester
is associated
with which
f a m o u s
S o u t h
African
wine produc-
ing region?”
CITYA.M. 17 MAY 2011 News 17

BEST OF THE BROKERS NEWS | IN BRIEF

City gives thumbs-up to chancellor
but has little time for Vince Cable
GEORGE Osborne is doing a better job
as chancellor than the City expected,
according to our Voice of the City
Panel.
PoliticsHome and City A.M. asked a
cross-section of people from London’s
business and financial community
whether government ministers had
performed better or worse than they
had expected one year ago.
Over half (51 per cent) of the panel-
lists said Osborne’s performance was
better than they expected, against 21
per cent who said he was doing worse.
Twenty-eight per cent said he was per-
forming “as expected” and one per
cent didn’t know.
The findings show Osborne has
improved his standing in the City; the
same panel said they would prefer Ken
PoliticsHome.com
In association with
PoliticsHome.com
Clarke as chancellor prior to the 2010
general election.
But almost three quarters (72 per
cent) of panellists said Vince Cable, the
business secretary, had performed
worse than they had expected against
just seven per cent who said he had
performed better than they expected.
Twenty per cent said he had per-
formed “as expected” while one per
cent didn’t know.
• PoliticsHome interviewed 489 people
from the specially recruited Voice of
the City panel by email between 12
and 16 May. Members of the panel
who respond to at least 80 per cent of
surveys between now and September
will be entered into a prize draw to
win a luxury weekend in Paris. Full
T&Cs available on request.
Apply to join today at
www.cityam.com/panel
ANALYSIS l InterContinental Hotels Group INTERCONTINENTAL HOTELS Centrica acquires PH Jones
1450 p JP Morgan (JPM) rates the hotel chain British Gas parent Centrica yesterday
“overweight” with a target price of £16.72. snapped up central heating provider PH
1400 1277.00 The broker thinks a better-than-expected Jones for £30m in cash. Centrica said
16 May the deal represented a step forward in
1350 performance since the start of the year will its expansion into social housing servic-
make up for any impact from events such es, and follows on from a partnership
1300 as the Japanese and New Zealand earth- with housing repair firm Mears last year.
quakes, and keeps the firm as one of its top Cheshire-based PH Jones, which was
1250 family-owned, has 42 contracts to serv-
picks. The firm is a beneficiary of a slow US ice 250,000 properties.
1200
21 Feb 11 Mar 31 Mar 20 Apr 16 May
supply outlook, and there is scope for a
return of capital to investors, JPM adds. Soco plans held up in Congo
Oil explorer Soco International said yes-
ANALYSIS l Experian
920 p
EXPERIAN
Credit Suisse rates the consumer credit
terday it was still waiting for govern-
ment approval before going ahead with
810.00 a project in the Democratic Republic of
16 May group “neutral” with a target price of Congo, though it expects a decision in
800 860p. The broker forecasts a pre-tax profit
the third-quarter of the year. Soco also
780
of $959m (£560.7m) for the firm’s full-year said it is looking at more exploration
results due on Thursday, though it expects openings in south east Asia and Africa.
760 organic growth to have slowed to 6.5 per
cent towards the end of the year due to
Cape moving up from AIM
740 Industrial services group Cape yester-
delays to its expansion in Brazil. Overall, day announced its plan to move from
720 Credit Suisse has lifted its forecasts for the AIM to the main stock market. The firm,
21 Feb 11 Mar 31 Mar 20 Apr 16 May which has a market cap of nearly
next two years by four per cent.
£600m and reported revenues of
ANALYSIS l ARM Holdings ARM HOLDINGS £650.1m last year, said it will move up
on 17 June, subject to shareholder
640 p 582.00 Evolution Securities has started covering approval at a meeting on 25 May.
620 16 May the chip-maker with an “add” rating and a
600
target price of 630p. The broker sees ARM RM sales drop on education cuts
repeating a pattern seen in previous stan- Education software maker RM posted a
580 first-half net loss of £1.3m yesterday as
dard-setters in the processor industry, with educational spending in the UK dropped
560
growth and share price rises expected over in response to changes in government
540
the next five years. Evo predicts a com- policy. Revenues fell 15 per cent to
520 pound annual growth rate of 17 per cent £133m, though its contract pipeline is up
480 for 2010-15 and thinks ARM will continue 12 per cent at £436m. A restructuring
21 Feb 11 Mar 31 Mar 20 Apr 16 May charge of £1.8m also helped to send the
to easily surpass consensus estimates.
company into the red. Chief executive
To appear in Best of the Brokers email your research to notes@cityam.com Terry Sweeney said market conditions
remained challenging.

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 18 Economics
America hits its debt ceiling
US ECONOMY
▲
BY JULIAN HARRIS
AMERICA’S government has hit its
debt ceiling of $14.3 trillion (£8.8 tril-
lion), with President Obama threaten-
ing that a failure to raise the limit
could trigger a devastating economic
and financial crisis.
The White House and congressional
Republicans are locked in a debate
over the deficit and the debt ceiling.
While Obama says the US will “get
serious about deficit reduction,” the
President has argued against the “link-
age” between the debt ceiling and
America’s annual deficit, expected to
hit $1.4 trillion this year.
Republicans are pushing for guaran-
tees on deficit reductions before agree-
Eurozone hit
by sharp leap
in core prices
EUROZONE ECONOMY
▲
BY JULIAN HARRIS
CORE inflation in the Eurozone shot
up in April, it was revealed yesterday,
while a senior central bank official sig-
nalled more interest rate hikes to
come.
Core consumer prices (excluding
energy, food, tobacco or alcohol)
jumped to 1.6 per cent in the single
currency area last month, from 1.3 per
cent in March and one per cent in
February.
“We are moving from a period of
very low interest rates toward a nor-
malisation,” said European Central
Bank (ECB) official Ewald Nowotny,
before the announcement.
“I think it is problematic to wait too
long for this normalisation.”
ECB chief Jean-Claude Trichet
declined to use the phrase “strong vig-
ilance” in his last speech on the
Eurozone’s monetary stance. The key
code-words usually signal an immi-
nent hike in rates, yet senior col-
leagues have insisted that the
omission does not rule out a rise in
rates next month.
“If the economy normalises further
then the ECB will act accordingly,”
ing to a hike in the debt ceiling.
The treasury department says it can
stave off default until 2 August by
drawing on other sources of money to
pay its bills.
Treasury secretary Timothy
Geithner told Congress yesterday that
he would start tapping into federal
pension funds to free up borrowing
capacity.
Geithner said he “will be unable to
invest fully” in the civil service retire-
ment and disability fund and the gov-
ernment securities investment fund.
“I again urge Congress to act to
increase the statutory debt limit as
soon as possible,” Geithner added,
echoing Obama’s call.
“If investors around the world
thought that the full faith and credit
Nowotny added, yesterday.
The harmonised measure of con-
sumer prices across the Eurozone rose
to 2.8 per cent last month, up from 2.7
per cent in March and 2.4 per cent in
February.
The core increase “reflects the late
timing of Easter, which meant that
package holiday prices were rising
strongly at the time,” according to
Eoin O’Callaghan of BNP Paribas.
“There will be give back in May as
the changing seasonality washes out
but it is unlikely to be complete – core
inflation is on an upward trend in the
euro area,” he added.
Meanwhile, Eurozone exports shot
up by a seasonally-adjusted 1.1 per
cent in March, bringing the trade gap
down to €0.9bn (£0.78bn) for the
month, from €2.1bn in February and
€3.2bn in the first month of the year.
The raw data, not adjusted for sea-
sonal fluctuations, showed a €2.8bn
trade surplus for March – slightly
above the trade balance at the same
time last year (€2.7bn).
“Nonetheless, imports increased by
6.8 per cent on the whole quarter,”
noted Ben May of Capital Economics.
“Net trade probably acted as a drag on
GDP in the first-quarter of this year.”
Inflation is the biggest
of the US was not being backed up, if
worry for older Britons
they thought that we might renege on
our IOUs, it could unravel the entire
financial system,” Obama had earlier
▲
UK ECONOMY
warned.
“We could have a worse recession INFLATION is responsible for damag-
than we already had, a worse financial ing the quality of life of middle-aged
crisis than we already had,” he said. and elderly Britons, and particularly
A report from the thinktank Third those on lower incomes, a survey
Way released yesterday said the US revealed today.
could plunge back into recession if More than half of people over 50 are
inaction in Washington forced a debt increasingly worried about the cost of
default, with some 640,000 US jobs living, listing it as their main concern.
vanishing, stocks falling and lending Fears over price pressures even
activity tightening. dwarf concerns about health or levels
Vice president Joe Biden is leading of crime, the survey by Saga revealed.
talks between the White House and Almost two thirds (63 per cent) of
lawmakers over how to reduce massive respondents want the Bank of
US budget deficits and raise the credit England to begin normalising interest
limit. rates to tackle rising prices.
BERNANKE BACKS STATE FUNDING OF R&D
GOVERNMENTS should consistently spend money on research and development (R&D) proj-
ects, US Federal Reserve chief Ben Bernanke said yesterday. “The primary economic rationale
for a government role in R&D is that, absent such intervention, the private market would
not adequately supply certain types of research,” Bernanke argued. Picture: REUTERS
TUESDAY 14TH JUNE TO SATURDAY 18TH JUNE 2011
300 YEARS OF THE WORLD’S
MOST FAMOUS RACECOURSE
Hospitality packages from £245 per person
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CITYA.M. 17 MAY 2011
Rates have been held at historically
low levels while inflation has spiralled
to over twice its target rate.
“Our report highlights a continued
struggle, especially for those in their
50s and those from lower socio-eco-
nomic groups that have witnessed
another rapid decline in their stan-
dard of living since January,” said
Saga’s Dr Ros Altmann.
The gap in wellbeing between the
highest and lowest socio-economic
groups over 50 has also widened since
the beginning of the year, the report
found. People aged 50-64 are more like-
ly to have been unemployed for over a
year, compared with average rates.
NEWS | IN BRIEF
Job prospects hold strong in City
Job opportunities in the City levelled out
in April, possibly slowed by the high
number of bank holidays, a survey
showed today. New financial services
openings were still 15 per cent up on the
same time last year, the Morgan
McKinley London employment monitor
showed.
Switch to short-term US assets
Foreigners cut purchases of long-term
US securities in March, data revealed
yesterday. The US attracted a net long-
term capital inflow of $24bn in March
compared with February’s revised
$27.2bn inflow – the fourth straight
monthly decline. But including short-
dated assets such as bills, foreigners
bought a net $116bn compared with a
downwardly revised $95.6bn the prior
month.
New York factories in slowdown
Manufacturing growth in New York
State slowed much more than expected
in May to its slowest pace in five
months. General business conditions fell
in the Empire State index, down to 11.88
from 21.70 in April, the lowest level
since December 2010 and well below
economists’ expectations of 19.85. New
orders also dropped, yet employment in
the factory sector actually rallied. The
prices paid index hit its highest level
since July 2008.
Low morale for US homebuilders
US homebuilder sentiment was
unchanged at low levels in May as on-
going foreclosures and tight credit kept
buyers reluctant to get into the market.
The National Association of Home
Builders / Wells Fargo housing market
index held at 16, the group said in a
statement. Readings below 50 mean
more builders view market conditions as
poor than favourable.
ascot.co.uk
Millinery: Stephen Jones
CITYA.M. 17 MAY 2011 Economics 19

UK poor are better off than

ever before, claims thinktank
“A much greater array of goods “They are harmed by bad institu-

▲
POLITICS
BY JULIAN HARRIS
WESTERNERS on low incomes are
better off than ever before thanks to
cheap imports and efficient retail-
ing, an influential Westminster
thinktank will argue today.
Complaints of widening income
inequality are frequently incorrect
and misleading, the Adam Smith
Institute report claims.
The NHS will not face radical reform, David Cameron said yesterday Picture: REX
and services are available to the poor,
at substantively lower inflation-
adjusted prices than ever before,”
said the author, Dalibor Rohac.
Policies designed to address
income inequality, which disregard
measures of material consumption,
too often ignore factors that embed
real poverty, the report says.
“The poor are not harmed by eco-
nomic inequality per se,” Rohac said.
tions, barriers to economic opportu-
nity, and privileges enjoyed by the
selected few, at the expense of every-
one else.”
Inequality across international
borders remains a far greater chal-
lenge than within the UK, the report
states. Trade barriers, migration
restrictions, and subsidies that
favour Western businesses should be
scrapped, it says.

Critics target
PM’s reforms If you’re the
for the NHS best in the city...
In the Valencia region of Spain, pri- ...then enter
▲

POLITICS
BY JULIAN HARRIS
PRIME Minister David Cameron’s pro-
posed health reforms were attacked by
both sides yesterday, with pro-reform
groups criticising his “diluted” state-
ment and Labour calling the plans a
“shambles”.
In a speech to doctors yesterday, the
Prime Minister said the NHS would
remain “much like what we have
today.” Reforms will be “evolutionary,
not revolutionary”, Cameron said.
“Let me make clear: there will be no
privatisation,” he added.
But thinktank Reform responded
sceptically: “David Cameron paid lip
service to the principle of choice but in
practice his speech defended the sta-
tus quo in NHS provision.”
Reform had earlier published exam-
ples of successful private sector health
provision in peer European countries.
“In Germany, a third of hospitals are
run by for-profit organisations and a
further third by not-for-profit organi-
sations, all accessible to citizens
through the national programme,” it
argued.
vate organisations provide services at a
25 per cent lower cost than the public
sector, Reform said.
Real term health spending has dou-
the City A.M.
bled since 1999, the group said, while
productivity has dipped by an average
of 0.3 per cent each year.
“Compared to other systems in
Awards now.
developed countries, the NHS lags
behind in terms of mortality rates,
cancer survival rates, stroke outcomes
and heart disease,” added Mark
Littlewood of the Institute for
Economic Affairs, a market liberal
thinktank.
Only three days left!
“Cameron needs to reject the status
quo and show the courage to embrace
radical reform.”
Conversely, the coalition’s plans
were attacked as “ideological” by the
opposition Labour Party.
“David Cameron’s plans will frag-
ment the NHS, with a free market free
for all undermining the quality, inte-
gration and public accountability of
NHS services,” said shadow health sec-
retary John Healey. “He talks of his
love for the NHS, but has broken his Visit our website to see how you can enter:
promise to protect the NHS.”
www.CityAMAwards.com

Business groups attack coalition For more information, please contact Jo Pead:
020 8267 4043 /jo.pead@cityamawards.com

plan for extended parental leave

vent them from taking on more staff.”
▲

EMPLOYMENT
BUSINESS groups yesterday leapt on
government plans to extend legisla-
tion on parental leave, arguing that it
contradicts the pledge to cut red tape.
A consultation paper proposes a
new period of leave that could be
shared between parents over 30 weeks,
following initial leave periods.
“The proposals look to allow more
flexible parental leave, but will lead to
uncertainty and expose employers to
endless appeals, legal challenges and
grievances,” said David Frost, head of
the British Chambers of Commerce.
“These kinds of laws create huge
uncertainty for employers, and pre-
Despite pledging to slash red tape as
part of chancellor George Osborne’s
“plan for growth”, the coalition gov-
ernment has actually increased the
regulatory burden on small firms, the headline sponsor champagne reception sponsor
Federation of Small Businesses (FSB)
said yesterday.
“Only days after announcing the
official venue partner sponsors
welcomed employment law review, a
raft of new employment burdens were
announced,” the FSB complained.
Business secretary Vince Cable
defended the proposals. “New parents
should be able to choose their child-
care arrangements for themselves,
rather than being dictated to by rigid
government regulation,” Cable said.
20 News
CITY MOVES | WHO’S SWITCHING JOBS
Legal & General Property
Charlie Walker has been promoted to
director of the property fund manager
and appointed to the LGP Board. Most
recently, Walker was senior fund manag-
er to the UK Property Income Fund. In
his new role, he will continue to oversee
the fund, which this month secured a
further £100m of equity. LGP has also
promoted Katherine Laurenson, Ross
Taylor and Michael Tate to senior solici-
tor, senior transactions manager and
fund analysis manager respectively.
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
Edited by Harriet Dennys
Aviva Investors
Nancy Utterback and Alessandro
Rovelli have joined Aviva Investors
as senior credit analysts in the
London credit team. Utterback, who
will cover the TMT and Consumer
sectors, joins from European Credit
Management and Rovelli, who will
cover the industrial and utility sec-
tors, joins from Deutsche Bank.
Berwin Leighton Paisner
The law firm has hired Nick Kynoch,
formerly a financial services partner at
Mayer Brown, to strengthen its
in association with
Financial Services and Markets Group.
Kynoch’s previous clients included BNY
Mellon and and Danske Bank.
Traiana
The post-trade solutions provider has
promoted Roy Saadon, one of the co-
founders of the company, to the newly
created role of head of EMEA.
Eximius Group
The recruitment firm has promoted
Nick Stevens to chief executive and
Bradley Lewington, Nick Harrington
and Ed Stevens, head of the engineer-
Miners offset banks
to leave FTSE flat
THELONDON
REPORT
L
ONDON’S top shares closed flat
yesterday as weakness from
banks was offset by an aggres-
sive rebound from mining
stocks, helping the index break back
through a support level which
traders said could herald a buying
spree.
The FTSE 100 ended down 2.18
points at 5,923.69, well off the ses-
sion low of 5,862.16.
“There’s a lot of support for the
FTSE around the 5,900 level -- in fact
only breached once in 2011 when we
had the Japan crisis in the middle of
March,” said Ed Woolfitt, head of
trading at Galvan Research.
“We see it as a good level to be buy-
ing at ready for the run back up,” he
said.
Tech stocks lead a
fall on Wall Street
THENEW YORK
REPORT
T
HE Nasdaq index sank yesterday,
leading US stocks lower, as
investors sold recent winners in
a sign of growing unease with
pockets of US economic weakness.
The Dow Jones industrial average
declined 47.38 points, or 0.38 per
cent, to close at 12,548.37. The
Standard & Poor’s 500 Index dropped
8.30 points, or 0.62 per cent, to end at
1,329.47. The Nasdaq Composite
Index slid 46.16 points, or 1.63 per
cent, to 2,782.31.
Worries about the market’s ability
to extend its recent gains have
increased. The expected end to the
Federal Reserve’s stimulus program
next month and the recent collapse
CITYA.M. 17 MAY 2011
ing, law and finance divisions respec-
tively, to managing directors.
PricewaterhouseCoopers
Roger Marsh has been appointed as a
senior partner in PwC’s Leeds office.
He succeeds Paul Nixon, who has been
appointed as the firm’s national leader
for mid-cap companies.
Kenmare Resources
The mining firm has hired Bruno
Cavalancia from Rio Tinto as head of
commercial and strategic development
for Asia, based in Singapore.
+ 44 (0) 207 092 0053
morganmckinley.com
Miners dominated the blue-chip
leader board, bouncing back from
recent lows as buyers came in for the
sector, which has hit by falling com-
modity prices.
Antofagasta was the standout
FTSE 100 riser, up 3.8 per cent after a
Citigroup upgrade to “hold”, while
Rio Tinto and Xstrata, which the bro-
ker named its preferred stocks, rose
1.9 and 2.1 per cent respectively.
Kazakhmys, meanwhile, climbed
2.4 per cent after announcing plans
to complete a secondary listing in
Hong Kong by the end of June, a
move that will boost its presence in
China - the world’s biggest copper
importer.
Banks waned as Eurozone finance
ministers met to discuss a bailout
package for Portugal and further
steps Greece must take to hit deficit
reduction targets, although
investors were largely taking the
meeting in their stride. The meeting
was overshadowed by IMF chief
Dominique Strauss-Kahn’s arrest.
in commodity prices have made
investors prone to sell more volatile
stocks that have outperformed in
2011.
Tech leader Amazon.com lost five
per cent, along with “high-beta”
names including Priceline.com, down
3.3 per cent, and Netflix, down 3.8 per
cent. Priceline is up 26 per cent since
the start of the year, while Netflix is
up 35 per cent.
Shares of JC Penney Inc fell 3.2 per
cent after the department store oper-
ator reported a higher quarterly prof-
it as the shares retraced some of their
recent gains.
Financials helped stem the Dow’s
losses, including American Express,
whose shares gained 1.2 per cent to
$50.07.
About 6.85bn shares were traded
on the New York Stock Exchange,
NYSE Amex and Nasdaq, compared
with the average of 7.73bn so far in
2011.
CITYA.M. 17 MAY 2011
In association with
Zurich Insurance plc
Technology clusters at
the pinnacle of success
In the second of a series examining the outlook for different sectors
of the UK economy, Philip Salter considers Cambridge’s tech sector
S
ILICON Fen is the UK’s answer
to California’s tech-rich valley.
The Cambridge cluster is
proof that, by forming a hub
of creativity, UK technology compa-
nies can compete on the world
stage.
Charles Cotton of Cambridge
Phenomenon explains that the orig-
inal catalyst for Silicon Fen came
from Tim Eiloart and David
Southward, chemical engineering
graduates from the University of
Cambridge, who founded
Cambridge Consultants. They
endeavoured to “put the brains of
Cambridge University at the dispos-
al of the problems of British indus-
try.” Cambridge and the
surrounding area prospered.
According to the Cambridge Cluster
Report, by 2004 24 per cent of all UK
venture capital was being injected
into companies in Cambridge.
Between 1988 and 2008, employ-
ment in the Cambridge tech cluster
grew from under 27,000 to over
43,000. In the same period tech-
based firms increased from approxi-
mately 800 to 1,300. There are about
1,400 today.
Richard Green, CEO of the
Cambridge-based real-time location
start-up Ubisense, describes
Cambridge as a great ecosystem,
second only to Silicon Valley. Nick
Business Features
Thompson, vice president of tech-
nology at Jagex, an online games
developer and publisher headquar-
tered in Cambridge, says:
“Cambridge has a real entrepre-
neurial spirit which runs through
the fabric of the city. There is a real
start up mentality and, because of
the university and the town’s histo-
ry and reputation for innovation, it
has become a natural hub for the
technology industry.”
Cotton says: “Cambridge is a caul-
dron of activity, people communi-
cate well formally and informally
and the entrepreneurial scene
remains vibrant.” Dr Mike Lynch,
CEO of Autonomy, believes
Cambridge has shown it can cover
almost all areas of the technology
industry, whether that is designing
hardware, like ARM, whose chip
designs run Apple’s iPad; creating
software, as Autonomy does; apply-
ing technology to life science
research, as Cambridge Bioscience
does; or providing technology con-
sultancy services and partnerships.
Over the years many Cambridge
companies have failed, but this is
the sign of innovative competition.
In the middle of the twentieth cen-
tury, Joseph Schumpeter appropri-
ated and reinterpreted from
Marxism the concept of creative
destruction. For Schumpeter, cre-
Cambridge should ative destruction is the process
inspire other cities whereby in a capitalist society, inno-
vative technologies destroy obsolete
Picture: REX ones. This process is manifest in
Cambridge. Following the collapse
of Acorn Computers came numer-
ous spinouts from its temporarily
redundant human capital.
Research on high-technology
clustering by Elizabeth Garnsey and
Paul Heffernan of the University of
Cambridge finds that “the emer-
gence of clusters of firms is related
to serial spin-out from the universi-
ty and local businesses.” Another
paper from Garnsey and Vivian
Mohr also finds that the big four
indigenous Cambridge technology
companies – ARM, Autonomy,
Domino and CSR – “have operated
as learning centres where over
6,000 employees have gained criti-
cal experience of rapid and sus-
tained growth in international
markets.”
Cambridge’s DNA is laced with
success. Its present-day James D.
Watsons and Francis Cricks are
working in the city’s many technol-
ogy companies, as innovators and
vital parts of the world’s global sup-
ply chain. In a country that readily
ignores success, Silicon Fen should
be celebrated.
Next in the series: business and profes-
sional services, 31 May.
21
PROTECTION IS
AS IMPORTANT
AS INNOVATION
GEOFF WHITE
SENIOR MARKET UNDERWRITER,
TECHMEDIA, ZURICH INSURANCE
T
HE technology sector is under continual pres-
sure to adapt, develop and deliver innovation.
This evolving business environment makes it
hard for companies to benefit from the lessons
learnt by more established industries and many com-
panies have learned it is key for them to protect their
assets, especially during their embryonic early years.
The UK economy thrives in the technology arena,
as we have a rich vein of creativity and entrepre-
neurialism, especially emanating from universities
and other further education facilities. Arguably, the
greatest invention of the last 35 years was invented
by a Brit – Sir Timothy Berners-Lee’s World Wide
Web. But recent stories surrounding Sony and others
show what a target technology has become.
Most technology companies set up with an inno-
vative idea, offering or service. The revolutionary
ideas that capture the imagination gain momentum
at an increasing rate. At this stage, the company’s
business acumen is first tested; expansion plans,
return on investment and key partnership affiliations
are fundamental to continual growth. Partners,
potential customers and suppliers all want to engage
with you and it is important to ensure close attention
is paid to any contractual terms and conditions
agreed. It is vital to employ appropriate legal counsel
to draw up contractual terms and also ensure that
expectations of delivery are firmly established and
agreed before you start work. Any changes should
be documented within the contract and written
approval from the customer, to ensure they are
happy, should always be sought. And then there’s
attention from overseas.
It is critical that technology firms seek expert
advice to ensure appropriate cover is in place to pro-
tect them on a worldwide basis to ensure any poten-
tial claim brought against them is covered. And, of
course, to protect their intellectual property.
So many issues for tech firms to consider, and as
an insurer, you’d expect us to have solutions to pro-
tect the sector. Cover looking after the potential
implications of a legal suit brought against them for
their actions where exposures vary from breach of
contractual duty, transmission of virus, privacy
infringement, libel and slander and infringement of
intellectual property rights to name a few. If you are
in technology, can you hand-on-heart say you’re cov-
ered for all those eventualities?
For more visit: www.zurich.co.uk/expertise or
speak to your insurance broker.
Kazuo Hirai of Sony has had some explaining to do Picture: REUTERS
 22
Wealth Management CFDs
EQUITIES ARE
STRUGGLING
AS QE2 ENDS
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
M
OST global equity markets are struggling to make
headway following the sharp sell-off at the begin-
ning of the month. Investors are shying away from
stocks on concerns that valuations are looking
stretched, and as a number of tailwinds which had
previously offered support are now fading. In the US, the
first quarter earnings season is drawing to a close. With over
90 per cent of S&P 500 companies having reported, 69 per
cent beat analysts’ earnings estimates, according to
Thomson Reuters. This was down on the fourth quarter, and
there were certainly notable misses, including Google, Disney
and Bank of America. But overall, investors saw the numbers
as positive, and largely ignored any downbeat forward guid-
ance, believing that corporations still have room to cut costs.
This is debatable, but if so, then it would point to further job
cutting and additional downside pressure on employment.
This is a problem. While the latest US non-farm payroll
number came in better-than-expected, the unemployment
rate ticked back up to 9 per cent last month. Weekly job-
less claims have begun to trend higher, rising back above
the 400,000 threshold for the fifth week in a row. Housing
is still weak. While there was a bounce in home sales data
last month, this came off very depressed levels, and the
overall trend has turned down again, as shown by the
S&P/Case Shiller House Price index. Meanwhile, the fore-
closure scandal is ongoing which is curbing activity and
preventing the housing market from finding its true clear-
ing level.
But perhaps the biggest concern for investors is what
happens to asset prices once the Federal Reserve com-
pletes its latest asset purchase programme. Back in
August, Ben Bernanke announced that the Fed would pur-
chase up to $600bn of US treasuries. Ever since, the dollar
has slumped while equities, oil, precious metals and other
commodities have all soared. There are now just six weeks
left before the second round of quantitative easing comes
to an end, and currently little likelihood of a fresh replace-
ment programme. Traders are now preparing themselves
for the loss of a huge amount of liquidity which was lever-
aged up and hosed into risky and high yielding financial
instruments. We’ve already seen steep falls in the dollar, oil
and precious metals. Investors are hoping that equities
won’t be next.
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CITYA.M. 17 MAY 2011
|
Bridget is not the only
one that keeps a diary
A trading journal can
help you to break
bad habits and learn
from your mistakes,
says Donata Huggins
N
OBODY likes making mistakes,
especially when you lose money
doing so. This is a feeling that con-
tracts for difference (CFD) traders
will be all too familiar with. But take
heart, much as Winston Churchill once
said: “All men make mistakes, but only
wise men learn from their mistakes”.
Traders can do just this by keeping a
trading diary.
It might seem like a painful way of re-
living your mistakes, but it can really
help. Michael Hewson of CMC Markets
explains: “The most common mistakes
traders make are tied up in emotion.
Keeping a diary can help you stop doing
that.”
COMMON MISTAKES
Indeed, most of us can empathise with
the desire to stick with a losing trade in
the hope it will bounce back – and know
how annoying it is to have jumped out of
a good trade too soon. Keeping a diary
allows you to check whether or not you
are falling into this trap. Luckily trading diaries don’t need you to record your weight
David Jones of IG Index sees this all
the time: “A really common mistake my have affected your mood. Were you rush-
clients make is trading against the trend. Reserve three pages for each trade. Note ing into the trade because you thought
Human nature is to see a market going down all the useful information you can the prices were about to change? Did you
up and look to sell it – and buy one that think of on the first page: moving aver- give enough thought to your risk-reward
is falling like a stone. This tendency is ages, support or resistance levels, but ratio and stop loss?
very easy to pick up if you keep a diary crucially how you were feeling at the
with charts in.” time, what time and why you entered FRESH EYES
the trade. Finally, the third page is for reflection.
WHAT TO JOT The less thorough might find that This is the most important part of the
But what exactly should you be jotting printing off the chart and scrawling process. It allows you to leave the trade
down? We asked the experts and here’s notes across it is a quicker method. alone and return to it at a later date with
their take on what you should do. Page two should be the same process, fresh eyes. It is a lot harder to ignore
Get a folder – it doesn’t need to be any- but for the time you sell. It’s really your bad habits if they are staring at you
thing glitzy or electronic, paper will do. important to note anything that might in black and white.
*
SPREAD BETS | CFDs | FOREX
free phone 0800 358 0864
gftuk.com
GFT Global Markets UK Ltd. is authorised and
regulated by the Financial Services Authority.
CD03UK.158.051311
CITYA.M. 17 MAY 2011
UK retailers are
serving up higher
high street prices
A report predicts tough times ahead
for the retail sector, writes Craig Drake
A
CCORDING to a report issued
by economic forecasting group
Ernst and Young ITEM Club
yesterday, UK retailers are in
for a difficult time in the years ahead.
The report points to rising inflation
and energy bills – without correspon-
ding wage increases – leaving house-
holds with less disposable income.
“World prices for food, fuel and
fibres are still working through to the
consumer inflation figures,” says the
report. “In the bad old days, this
would have triggered a vicious wage-
price spiral. But today’s workforce
seems to realise that it would be
counter-productive to try to compen-
sate for this by demanding higher
wages.”
So is all lost for CFD traders hoping
to profit in this sector?
“The UK retail sector is going to
continue down this road until such
times as we get a de-leveraging of
household debt, irrespective of inter-
est rates,” says Michael Hewson, mar-
ket analyst at CMC Markets.
According to the report, disposable
income will fall by 0.1 per cent this
year. Consumer spending – a key driv-
er of economic growth – will grow by
a meagre 0.6 per cent this year and 1.3
per cent in 2012.
David Jones, chief market strategist
for IG Markets, agrees with the
report’s short term views, but in the
long term feels that it was overly
gloomy: “Although we have seen grad-
ual economic recovery, consumer sen-
23
Haberdashery prices ANALYSIS l UK Average Earnings and Inflation
are on the rise
8
% Forecast
Average earnings
4
2
CPI inflation
0
-2
Source: Ernst
and Young
-4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
TRADE ANY MARKET
WIN AMAZING PRIZES
r chance to win
Every trade you place is anothe
WORLD
AROUND THE
ADE
WITH EVERY TR
timent in the UK is still lagging
behind. With the spectre of rate rises
this year and government cutbacks
threatening jobs, I can’t see this
changing.”
So how should CFD traders
approach the UK retail sector?
“The slowdown has split retailers
down the middle,” says David
Morrison, CFD market strategist for
GFT. “Those that were over-leveraged
and over-exposed are on one side and
those who have a good mixture of
high-street and online presence are
on the other. Companies such as the
clothing company Next have come
out in a good position, with compe- WIN an amazing experience every week,
tent management and a strong online
retailing business” including a fabulous trip around the world for two*
Jones advises that traders should be
stock specific rather than taking a
broad position on the sector as a
whole: “One strategy could be a pairs
trade – long one retailer/short anoth-
er, eg long Sainsbury/short Tesco if For more information visit
you thought that Sainsbury would
outperform Tesco share price. It is www.cityindex.co.uk/world
arguably a little bit less risky than just
a straightforward long or short – but
of course if you are wrong on both
counts you lose twice.”
Though the outlook for the broad Spread betting and CFD trading can result in losses that exceed your initial deposit.
sector is looking gloomy for the next
few years, there are some stocks that
will shine through. If traders look *Entry is restricted to UK residents aged 18 or over. Exclusions apply. Closing date is Friday 3rd June 2011
carefully they will be able to profit in at 10:00pm. Terms and conditions apply, please see www.cityindex.co.uk/world
this sector. And with inflation at its
current levels, they are going to have
to make all the money they can.
24 Wealth Management | Contracts for Difference CITYA.M. 17 MAY 2011

Providers compete
on the originality of
their platforms

Picture: CMC Markets

Forex
Forex & CFD T
Trading.
rading. Worldwide.

Focus your Forex trading potential

Mobile trading
technology is
on the move
Driven by digital innovations, portable
trading platforms offer an exciting arena
for competing providers, says Philip Salter
MetaTrader
With MetaTrader 4

W
ITH the vast majority of trad- Providers need to offer mobile trading if
One of the most popular Forex trading platforms in the ing now taking place online, they are not to be left behind; those cur-
world. MT4 is renowned for its advanced charting package the computer revolution had rently without a mobile offering are busy
and user-friendly interface. Trade on MT4 with one of the replaced the phone as the pri- working on getting them to market.
largest MT4 brokers! mary medium for trading. But the cur- Angus Campbell of London Capital
rent transformation is towards Group says: “Mobile devices are
trading on the move, getting quicker and smaller year
Plus, Alpari Research
Research T
Tools
ools as traders demand
24/7 access through
by year and so we expect them
to play an increasingly impor-
Access a wide range of research tools free with your Alpari i n te r n e t - e n a b l e d tant role in the way people
(UK) Live account: Alpari Squawk for live audio market mobile devices – trade.” He adds: “As more
commentary, technical analysis reports from Trading Central, including their mobile devices come onto the
and chart-pattern recognition from Autochartist. phones. It is an excit- market, more and more peo-
ing time for consumers, ple will buy smart phones
with stiff competition and pads, thus demanding
Alpari (UK) is authorised and regulated by the Financial
driving innovative tech- applications that will give
Services Authority. Forex and CFDs are leveraged products. nology. them fast and reliable access
They may not be suitable for you as they carry a high degree Roger Hambury of City to their trading accounts.”
of risk to your capital and you can lose more than your initial Index states: “Three years Craig Inglis of CMC Markets
Trading Central Alpari Squawk
investment. Yo ou should ensure you understand all of the risks. Autochartist ago, mobile dealing was says more people are now
only a small part of our opening accounts on
business; as little as 2 per mobile accounts than
cent of all volumes were from their PC, while
being traded through a David Jones of IG – which
alpari.co.uk/mt4
alpari.co.uk/mt4 mobile device.” He goes on:
“Today, almost one in four
will imminently offer an
app upgrade allowing
+44 (0)20 7426 2890 Best Active
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trades are executed via our traders to “view market
UK Product
mobile platforms, whilst one depth on individual
in three clients have actively shares” – believes that
used their mobiles to trade.” given the volatility seen over the
CITYA.M. 17 MAY 2011 Wealth Management | Contracts for Difference 25

THE TIPSTER continue to come under pressure, but

should Mothercare disappoint and dip to
the 380-400p support level, CFD traders
TRADERS could think about taking a longer term
view. Spread Co quotes a spread on
TURNING Mothercare of 421.9p-423.6p
JAPANESE The anticipated resolution of the
British Airways dispute with its cabin
crew combined with the falling price of oil
and talk of industrial relations issues with
Airlines Group. IG Markets current price
on ICAG is 245.2p-245.4p
This morning's first quarter Marks
and Spencer trading update is likely to
provide a key barometer towards this
week’s UK retail sales figures, though it
could also see an unexpected boost from
the Royal Wedding. CMC Markets quotes
a spread of 396.75p-398.45p
Barclays shares performed a death

T
HE Nikkei was sold off a little on
Monday following some disappoint-
ing consumer confidence data. The
country is still struggling back to
normality following the terrible earth-
quake, but for contrarian investors,
Japanese stocks could look good value.
Capital CFDs quotes a price of 9,540-
9,550 for the Nikkei 225.
Mothercare reports its earnings on
Wednesday. Its shares are 31 per cent
down on the year, but 12.5 per cent off
the lows set in mid-April. Retail stocks
pilots at competitor Virgin must have
seemed like a welcome break for the
recently listed BA-Iberia airline group.
Furthermore, with a large chunk of the
group’s outgoings being denominated in
euros, anything that precipitates further
weakness here has the potential to lend a
degree of support. There is however the
rather significant question mark lingering
over the outlook for the global economic
recovery and any further jitters here will
end up weighing once more on compa-
nies like International Consolidated
cross on 3 May when the 50-day moving
average cut through the 200-day moving
average to the downside, and since then
they have fallen 13p to 273p. If Barclays
shares play out the same pattern going
back two years again, then we should see
them continue to fall until 255p-260p
before rebounding back towards 300p. If
you are tempted to buy Barclays, it might
be worth waiting with a buy order
around 260p. Spread Co quotes
273.0p–273.6p on Barclays.
Craig Drake

Where is the price of oil heading?

last couple of years, mobile access is
increasingly necessary. Both Jones and
Inglis cite the Japanese earthquake, as an
occasion when having access to mobile
trading proved useful. Speed is key, with
Shai Heffetz of InterTrader working from
the premise that “time is money.”
Despite the accelerating demand over
the last two years, Jones cannot foresee
mobile trading overtaking PC based trad-
ing, principally because charting and
other tools don’t work as well on smaller
devices. Apart from the size of the screen
– which is seen by many as the key limi-
tation for mobile devices – another tech-
nical drawback can be that mobile
reception on occasion results in frustra-
tion for traders. A number of providers
suggest that they get phone calls from
traders on trains shooting in and out
tunnels, unsure if their trade went
If you know what affects the price of oil and have an
opinion on which direction it’s going, you should consider
through or not.
Social networking is seen by many
CFD trading with IG Markets.
providers as another essential part of Take a position on a wide variety of commodities and
their business strategy. A quick search on
Twitter reveals that all the major other markets with the UK’s number one CFD provider .*
providers have a corporate presence – as CFD trading can result in losses that exceed your
do most of their experts. CMC Markets
will soon be releasing a trading applica- initial deposit.
tion with the aim of building trading
communities as a forum to discuss trad-
Discover more at igmarkets.co.uk or call 0800 195 6300.
ing strategies: “a Facebook for traders.” * Investment Trends 2010 UK Spread Betting/CFD Report.
Inglis sees this as particularly useful for
new traders, who will be able to plug
into a community of traders.
This dynamic competition is com-
pelling. The growing distinction in prod-
ucts and services provided by the
intersection of technology and trading is
good for providers and will grant cus-
tomers more choice, which can only be a
good thing.

IG on the iPhone (left), CMC on the iPad (top) and London Capital Group on the HTC (bottom)
 26 Wealth Management | Markets CITYA.M. 17 MAY 2011

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 Lifestyle
Episode 12:
Unfamiliar as
I am with this
CITY DAD
Within two minutes of Sir Roderick hanging up
I’d had Rupert Carmichael on the telephone.
“I’m sure you’ve heard dear boy. And I know
I really ought to have been the first to tell you.
You must think me terribly rude. I’m afraid
that, in the end, they simply wanted a bigger
man. Of course, they had to pay up.
Significantly. As I’m sure you can imagine.
Anyway, I know you’ll make a colossal success
of stepping into Sandy’s over-sized loafers. And
I’m sure our paths will cross again. I certainly
haven’t forgotten our bottle of Chateau Mouton
Rothschild ’59. Au revoir.”
So Sandy had got the job I didn’t want for
probably three times the already exorbitant
package I’d been offered. Or thought I’d been
offered. It certainly seemed that I’d been set-
up by Sandy. And maybe by Carmichael too.
The first class flight home was sleepless.
In the morning, Sir Roderick had stood
beside me as I blearily and uninspiringly
addressed the troops. As I spoke, I caught
Juliette’s eye. She smiled. Surely the disarming
prelude to a series of unflattering medical reve-
lations. Afterwards I’d retreated to my new,
very empty office where I’d found a white
envelope, embossed with the bank’s emblem,
obscuring the only personal object in the office,
a framed photograph of Emma and Noel. The
envelope contained confirmation of my promo-
tion and of a 50% increase in salary.
I look up now at the expectant audience in
front of me. Twenty terrifyingly attentive six
year olds sitting cross-legged on the floor. Noel
is conspicuous at the centre of the group. I’m
under strict instructions to impress. Last
week’s mum had just finished designing a house
for a famous young actor and tickets to see his
new film were promised to the whole class.
I reach into my jacket pocket for the 6 by 4
inch cards I’ve filled with the 20 most interest-
ing facts I know about money. Fact One: in
about 1200 BC in China, cowry shells were
used as the first money. So just think, next time
you go to the seaside you could come back a
millionaire.
I withdraw my hand and decide to throw
caution to the wind. “I’m going to show you
something clever that you can do with money.”
I take a crisp, brand new one dollar bill from
my wallet and show it to the children. I’ve got
another forty-nine tucked away, just in case this
goes horribly wrong. As Noel and his class-
mates watch, I begin to fold the bill. Into quar-
ters and then diagonally. Curious, the children
edge closer as the folding becomes more intri-
cate. Three minutes later and with barely a
hitch, the dollar bill has become a butterfly.
Perhaps not the most airworthy or beautiful of
butterflies but a butterfly nevertheless. An hour
later, the world’s reserve currency is crumpled
and looking rather tatty, whilst the butterfly
population has not been added to. But the chil-
dren are happy and Noel is beaming. It seems
that those eight hours of first class airborne
practice had paid off.
City Dad will be continued on May 24. See past
City Dad columns at www.cityam.com
Lights, Camera: Beauty!
Lucie Greene checks
out the latest Cannes
red carpet hair and
make-up trends
R
ED carpet beauty is different to the
catwalks. It’s not about being edgy.
Our brief is simple: Actresses just
want to look as gorgeous as possi-
ble,” says celebrity makeup artist Emma
Day, known for working with Sienna
Miller, Keira Knightly and Lily Allen,
among others. “We pull out all the tricks
so that people go: ‘Wow, you look amaz-
ing.’”
And – as the world’s best makeup and
hair gurus descend on the Cannes Film
Festival this week – there’s plenty of inspi-
ration to be had.
“Strong red lips have been a recurring
trend,” says Day. “It looks great in the light
there. Also lots of actresses have been sport-
ing pale dresses, so a red lips are a great
way to give the look some punch.”
Day recommends getting the look by lay-
ering lipstick in a strong shade by Nars or
Chanel and blotting several times. “It gives
a great depth of colour that way.”
Minimal fresh-facedness has also been a
key trend at the Cannes, as sported by Mia
Wasikowska and Clémence Poésy who
both have worked nude lips and barely
there makeup for events.
“That’s a look a lot of French girls go
for,” says Day. Although, she cautions: “It
involves a surprising amount of effort to
achieve that low-maintenance style. I put
After the May drought expect a gadget monsoon
GEEK
SPEAK
@steve_dinneen
G
adget junkies in need of a fix may have
to accept a few more weeks of gut-
wrenching, palpitation inducing cold
turkey. May has not been a good
month for so-called “hero” product releases.
The single most exciting thing to hit the
shelves has been Motorola’s Atrix handset,
which is a bit like saying magnolia is the most
exciting shade of beige.
There are rumours the eternally protracted
launch of BlackBerry’s Playbook tablet could
finally happen this month, which seemed like
an exciting prospect when I got hold of it
back in January but has since lost approxi-
mately 97 per cent of its appeal. It’s been
like waiting for five months in a queue for
a rollercoaster at a seaside resort – you
have plenty of time to realise that it’s prob-
ably not going to be worth the money, you’d
rather be at Alton Towers and the whole
thing will likely be over before it’s really
started.
There is a very fine margin between giving
time to let excitement build and boring
potential customers into a coma. Apple, the
puppet-master of public opinion, tends to
show off its latest offerings a matter of days
before lucky customers have the chance to
camp outside its stores for a few nights to pick
one up. Gadgets are about making things hap-
pen, fast. Dangling the prospect of a new prod-
27
LEXUS CT 200H
REVIEWED
TOMORROW
on false eye lashes, a subtle eye liner, cover- Left, Cheryl Cole
up and illuminator.” working a dark
The natural look has been echoed in
hair, which – outside of the usual 1940s set
red lip on the red
carpet. Below,
curls – has taken an altogether more tou-
sled note with loose flowing curls and
actress Delphine
Chanéac.
thrown-together (but so not) updos. Sarah
Jessica Parker, Diane Kruger and Uma
Thurman have all sported versions.
“There’s a new informality,” says Tara
Smith, hair guru to Demi Moore, Rosario
Dawson and Vanessa Hudgens. “Whether
it’s up, or down, the vibe has been laid back
and textured. Actresses have also been
playing with more extreme side partings.”
Luckily, celebrity stylist Chris Sweeney
says it’s easy to achieve. “Brush mousse
through wet hair and give a quick blowdry
to smoothe, then use large tongs to curl
the hair,” he says, adding of the benefits
when this is tied back. “It’s such a great
antidote to the formal fixed looks that can
make girls look like Imelda Marcos. This is
younger and fresher,” he says. So, what red
carpet style will you be trying out?
Emma Day’s top red carpet beauty products
The perfect highlighter Flawless face
“It really brings out the “I just started working Lips with impact
cheeks.” Laura Mercier Mineral with this. It gives an “Pick a great deep red
Powder SPF 15, £31, amazing finish.” shade.”
Harrods.com Lumising Moisture Chanel Rouge Allure,
Tint, $38 (or, £23), £23, www.self-
www.jouercosmet- ridges.com
ics.com
uct with no sign of a release date angers and Wii 2
confuses me, like a bear that can smell food but • Nintendo, June 7-9
is unable to open the tin, lacking as it does the Nintendo will unveil the highly anticipated Wii
requisite manual dexterity. follow-up at the E3 showcase event. Expect a
So, in the meantime here are some dates to handheld HD screen and next-gen graphics.
add to the gadget calendar, if indeed such a
calendar exists. Which it should. iPhone 4S
• Apple, August/September
Chromebook Bigger screen, thinner body, A5 dual core
• Samsung, Acer and others, June 15 processor and a camera upgrade are all
The first generation of browser-only laptops rumoured.
powered by Google will go on sale. Everything
The follow-up to will be stored in the cloud, meaning the laptop iPod 7th Generation
Nintendo’s world-con- itself will be incredibly stripped down. Pricing • Apple, August/September
quering Wii will be will be the make-or-break factor. The new iPod will apparently pack in even more
unveiled in the features including, bizarrely, a thermometer.
summer.
LOSING YOUR HAIR?
At The Wimpole Clinic, one
of the leading hair transplant
centres in Europe, Dr. Michael
May F.R.C.S. has pioneered a
permanent solution to male
pattern baldness using
advanced follicular unit
hair transplant techniques.
For your FREE consultation
with Dr May call today on:
020 7935 1861
w w w.wimpolec linic.c om
THE WIMPOLE CLINIC
Hannah House, 1 1-16 Manc hester Stre et, London W1U 4DJ
IT CAN BE RESTORED!
28 Lifestyle CITYA.M. 17 MAY 2011

In the club: Century opens

FOOD & BOOZE
NEWS
TIMOTHY BARBER

brasserie doors to public BOMBAY BEACH PARTY ON SOUTHBANK

Quality brasserie fare
makes this a great
post work hangout,
says Lucie Greene
CENTURY BRASSERIE
Century Club, 61-63 Shaftesbury Avenue,
London. W1D 6LQ
www.centuryclub.co.uk
FOOD
SERVICE
ATMOSPHERE
Cost per person without wine: £35.20
Dishoom, the St Martin's Lane eatery inspired
by Bombay's past cafe culture, has opened a
pop-up version on Southbank complete with
its own beach. It’s been made using 48 tonnes
of sand and is offering "gola" drinks –
Bombay's answer to the slushie or snow
cone – alongside a host of themed snacks.
Finishes Oct 4. www.dishoom.com
AFTERNOON TEA FOR 7 P
The Langham Hotel,
which is sometimes
credited with first popu-
larising the concept of
afternoon tea, is cele-
brating its 146th birth-
day by offering it for just
seven pence, the equivalent to
the original price charged in 1865. Book now
as it’s one day only, June 10.
www.london.langhamhotels.co.uk
GELATO TO YOUR DOOR
hhhII London's chic ice-cream parlour, Gelupo, is
hhhII launching a nationwide delivery service for
hhhII those desperate for Italian-style gelato but
unable to make the trip to Soho to get it. Get
deliveries to your door in 24 hours, or on the
same day for Londoners (if ordered by 5pm).
www.gelupo.com

T
HERE’S something instantly calming
about stepping in to Century. The
private member’s Club, set above
street level behind an anonymous
looking door on Shaftesbury Avenue, feels
like a secret oasis of calm from the outside
madness of buses trains and crowds. And
yet, crucially, it’s still buzzy enough to feel
vibrant.
Places like this are gold dust in Soho,
where – in the throng of theatregoers and
tourists of Old Compton Street – it’s nearly
impossible to get a table for solid decent
food in a place that isn’t rammed to the
rafters and overpriced. Which is why, when
I heard that the club had recently opened
the doors of its Brasserie to the public, I was
excited.
The Century Club Brasserie, in its public
incarnation, was launched last month fol-
lowing an overhaul of the whole club, and
is situated on the first floor. Inside you can
quite see the appeal to members. The mood
as you walk up the steps in to the large airy
space is relaxed, with friendly staff showing
you to your seat. The atmosphere is rein-
forced with warm wooden tables, giant
wooden shutters, intimate (but not too
dark) lighting and booth tables along the
wall.
Chef Graham Thompson has created a
new menu for the restaurant focussing on
organic and GM free ingredients, aimed at
the post-work and lunch meeting crowds.
Its signature, he says, is a simple grills of
fish, fowl and rare breed meats, which sits
alongside solid brasserie staples.
I start with the pan fried foie gras, grapes
and balsamic vinegar. The foie gras is rich
and buttery as ever and is cut through per-
The tuna is fectly by the bed of warm sweet sauteed
grapes. My dinning partner orders the
everything it salad of warm Jersey Royals, chorizo, broad
beans & rocket. He’s also impressed. The
should be chorizo chunks are like glistening hot
paprika jewels among the rocket and
(and yet, so beans. Again, it’s a simple idea, but nicely
executed.
often isn’t.) For our main courses we go pedestrian,
shunning fancier numbers for grilled king
It’s generous, prawns prawns and a tuna steak with
poached egg and spinach salad. The
succulent and prawns are a touch over-cooked but fine.
The tuna steak meanwhile, is everything it
cooked to should be (and yet, so often isn’t.) It’s gener-
ous, succulent and cooked to perfection
perfection. with an oozing poached egg on top.
Puds at the Century Brasserie include tri-
fle, crumble, mousse and tartins. I go for
valrohna chocolate mousse with honey-
comb ice cream. It’s pretty lethal – and by
that I mean amazing. My partner also likes
the Nougat parfait with cherry sorbet,
although with two giant slices he thinks
it’s a bit rich to have such a volume.
(Clearly an amateur. I think I could have
given it a stab at it. In fact I do, once he is
defeated.)
The main selling point of the Century
Brasserie is its location and ambience. It
won’t pick up the passer by traffic (thanks
to its discrete signage) but that’s fine by
me. It’s the perfect place to have in the
back pocket for weekday evenings, or a
casual weekend lunch with friends where
all you want is good food, wine, and a bit of
relaxation at non-gratuitous prices. I look
forward to my next visit.

THREE OTHER PRIVATE CLUB RESTAURANTS

BY TIMOTHY BARBER

THE IVY CLUB BEAUFORT HOUSE CHELSEA CUCKOO CLUB

The West End's legendary centre of
luvviedom and fabulous English cook-
ing opened its members' club, The
Club at the Ivy, in 2008, covering
three floors of the building above the
restaurant. The Ivy, 1-5 West Street.
WC2H 9NQ www.the-ivy.co.uk
At the cosier end of the King's Road,
Beaufort House combines the exclu-
sivity of its club and smart restaurant
upstairs with a delightful brasserie
and cocktail bar at street level which
is open to all-comers.
www.beauforthousechelsea.com
Just off Regent Street, the Cuckoo
Club is a sultry, rock-chic place full of
sassy young Euro types. The impres-
sive modern European food reflects
the excellent sourcing of ingredients
by chef Chris Cooper.
www.thecuckooclub.com
CITYA.M. 17 MAY 2011 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
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7.30pm EastEnders: BBC News
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9pm Crimewatch:
Catch Me If You Can
10pm BBC News 10.25pm
Regional News; National Lottery
Update 10.35pm See You in Court
11.05pm The Lock Up 11.35pm The
Football League Show 12.40am
Sign Zone: The Prison Restaurant
1.30am The Hairy Bikers 2.30am
Churches: How to Read Them 3am
One Man and His Campervan
3.30am Great British Railway
Journeys 4am-6am BBC News
6pm Eggheads
6.30pm Great British Menu
7pm Britain’s Secret Seas: The
team visits a gannet colony in
the Firth of Forth.
8pm CHOICE Britain’s Next
Big Thing: Theo Paphitis spots
a product he believes could
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9pm The Country
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
  

SUDOKU KAKURO
8 16 42 15 4 10 34 11 
20 27
  
7 15
Place the numbers from 1 to 9 in each empty cell so that each 28
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 16
12 7
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 22 7
   
above or to the left of it. 23 31
35 19   
You can only use the digits 1-9
    and you must not use the
11
29  
same digit twice in a block.
  The same digit may occur 18
6 32
17
28 9

 more than once in a row or

column, but it must be in a
3
6 24
29
 
11 13
   separate block.
8 10 5 
21 21
    33 7
 

  ACROSS DOWN
1 Actor ___ Guinness, 1 Canopy (6)
 
   WORDWHEEL H V
who played Smiley in
Smiley’s People (4)
3 Small pouch for
2 Group delegated
to consider some
matter (9)
Using only the letters in the Wordwheel, you have shampoo, etc (6) 3 Dye or other
   ten minutes to find as many words as possible,
I N 5 Cereal grass (3) colouring
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 6 Standard (4)
7 Antipathetic (6)
material (5)
4 From the Orient (7)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
A N 9 Across the country (10) 8 Mysterious (9)

SOLUTIONS KAKURO is at least one nine-letter word in the wheel.

G S
13 Surfeit (4)
14 Banking system (4)
10 Character in the
Arabian Nights (7)
11 Expression of
QUICK CROSSWORD 16 Item appended to
SUDOKU
6 7 8 2 5 8 1 disapproval (3)
2 3 1 1 3 2 6 4 an email (10)
         12 Gaming cube (3)
O V S T A U N C H
6 2 7 3 4 1 5
        
18 Resist separation (6)
P O A C H N A
T L E V I D E N T 5 9 9 6 8 7 4 19 Roman cloak (4) 15 Capital of
        
I N U R E E A 1 8 4 5 7 3 9 8 Canada (6)
         20 ___ Lanka, country (3)
C E A R N E R P 3 1 9 8 17 Green salad
21 Feeling of ill-will
WORDWHEEL
S U D S E S U E T         
1 3 9 4 2 1 8 9
N H I T L E R A          vegetable (5)
9 7 9 3 8 2 5 arousing active
T N Y A C H T         
F R E E M A N H T
9 8 6 5 7 4 3 The nine-letter word was hostility (6)
        
U S C A I R O 9 8 6 7 4 1 4 9
FLAGSTONE 22 Spanish sparkling
M E S S I A H N O 4 1 8 1 2 1 6         
white wine (4)
 Sport
30
Hughes could finish as high as seventh in
his first season at Fulham Pic: PA
Fair play to
Fulham as
Europe calls
▲
FOOTBALL
BY JAMES GOLDMAN
FULHAM could make a surprise
return to European competition next
season via Uefa’s Respect Fair Play
ranking.
The 2010 Europa League runners-
up are in pole position to benefit
from the extra spot afforded to the
Premier League by the governing
body.
Mark Hughes’ side, who have a
chance of piping Everton for seventh
place in the Premier League, are in
second spot in the domestic fair play
table behind Chelsea, who have
already qualified for the Champions
League.
Fulham’s nearest challengers are
Tottenham, who could possibly
snatch the European place if they fin-
ish in sixth spot, missing out on auto-
matic Europa League qualification,
and above the Cottagers, who are the
only top flight team not to have had a
player sent off this season, in the final
fair play table.
Qualification would, however,
cloud Fulham’s pre-season prepara-
tions with the first round due to
begin on 30 June.
Mystery surrounds
death of Wanjiru
▲
ATHLETICS
BY JAMES GOLDMAN
OLYMPIC marathon champion
Samuel Wanjiru has died tragically
at the age of 24 after apparently
committing suicide.
Wanjiru suffered internal
injuries as a result of a fall
from a first-floor balcony at
his home in the town of
Nyahururu and was pro-
nounced dead in hospital
after attempts to revive
him failed.
Despite police chiefs
painting the death of the
London marathon course
record holder as suicide,
Kenyan media and the ath-
MCCLAREN SNUBS
l Hot favourite to replace Grant out of the running
l Players told to stop feeling sorry for themselves
▲
FOOTBALL
BY FRANK DALLERES
FORMER England manager Steve
McClaren last night insisted he is not
the man to mastermind West Ham’s
bid for an immediate return to the
Premier League.
McClaren was yesterday installed as
the clear favourite to replace Avram
Grant, who was sacked on Sunday
after defeat at Wigan doomed the
Hammers to relegation.
But the ex-Middlesbrough and
Twente boss, who was sacked by
German side Wolfsburg earlier this
season, ruled himself out of
the running after a day of
frenzied speculation.
“It is very flattering to
be linked with a club of
West Ham’s size and his-
toric stature, also one
that has tremendous
fans,” said McClaren
(inset). “However, at this
moment in time I do not
wish to be considered for the
position. But I wish everybody at West
Ham all the very best for the future.”
McClaren’s snub leaves former
Newcastle manager Chris Hughton,
ex-Blackburn boss Sam Allardyce and
current QPR chief Neil Warnock as the
most fancied candidates for a job that
West Ham co-owner David Gold
expects to attract a flurry of interest.
Gold has called for time and
patience as he prepares to make what
he insists will be one of the most
important managerial appointments
in the club’s 116-year history.
But with an immediate return to
the top flight needed in order to stave
off fears over their debt pile and the
move to the Olympic Stadium, Gold
lete’s agent, Federico Rosa, have spec-
ulated something more sinister could
have been afoot.
“I’m 100 per cent certain it
was not suicide, that’s all that
I can tell you,” said Rosa. “I
talked to him yesterday, he
seemed very relaxed, happy
and everything was cool.”
Despite a stellar ath-
letics career, Wanjiru’s
(left) personal life
had been afflicted
by a number of
controversies.
Last year, he was
charged with threat-
ening to kill his wife,
assault and the illegal pos-
session of a firearm.
underlined the importance of getting
the right man.
“The sooner the better because we
have an enormous amount of work to
do, but we mustn’t be rushed,” said
Gold of the timescale.
“This will be a very, very important
appointment. We’re choosing a man-
ager good enough to get us out of this
division and capable of continuing
once we’ve achieved that. It’s impor-
tant we have time for the CVs to come
into us. I’m sure many, many man-
agers will see the job as challenging
and exciting and it’s important we
pick the right person.
“We’re also prepared for the
most exciting venture in the
history of the club in the
sense that we’ll be moving
to a new stadium, which
is something we’ve never
done.”
Gold added that while a
period of mourning was
natural, the club had to
look forward. “We’re entitled
to grieve for a couple of days or
maybe a couple of weeks, but sooner
or later we have to stop feeling sorry
for ourselves and talk about promo- SAM CHRIS
ALLARDYCE HUGHTON
tion,” he said. “We’ve got to do every-
thing in our power to get back into the
Premier League as soon as possible.”
Hughton is desperate for a return to Pros: Superb organis- Pros: Took Newcastle
management and told City A.M. last
month he would consider a job in the
er and shrewd opera- up having lost star
Championship, having been out of tor in the transfer players. Worked with
work for six months. Like Hughton, market. high-profile owner.
Allardyce has been on the market
since December, when he was sacked
Cons: Has not man- Cons: Newcastle aside,
by Blackburn. aged outside the top no experience of being
Warnock, meanwhile, faces an flight since 2001. a No1. Not a big name.
uncertain future at Loftus Road,
despite leading them into the top
flight this season.
London calling for Djokovic as
Serb’s streak ensures O2 place
Bell sees a
new threat
TENNIS second grand slam of the year is like-
in Sri Lanka
▲
ly to be Nadal, whose mastery on clay
UNSTOPPABLE Novak Djokovic has is underlined by his five triumphs at
already qualified for the ATP Tour Roland Garros.
Finals in London later this year – six Tantalisingly, should they meet in
months early. the final again, at stake could be not
▲
The Serb has booked his place at just the title but also the No1 spot CRICKET
the end-of-season tournament at the and, for Djokovic at least, a victory BY JAMES GOLDMAN
O2 with an incredible 39-match win- that would equal Guillermo Vilas’s
ning streak that has already garnered record for the longest winning run ENGLAND batsman Ian Bell insists Sri
seven titles this season. on the ATP Tour, which stands at 46. Lanka represent a real threat to his
Djokovic’s latest triumph came at side’s Test ambitions this summer.
the Rome Masters, where he beat The tourists, whose champion spin-
world No1 Rafael Nadal in the final STREAKERS | LONGEST WINNING RUNS ner retired from international follow-
on Sunday, 24 hours after edging out ing the World Cup in March, wrapped
Britain’s Andy Murray. 46 Guillermo Vilas (1977) up a four-wicket win over Middlesex
It was the 23-year-old’s fourth 44 Ivan Lendl (1981-82) in their first tour match at Uxbridge
defeat of Nadal already in 2011, and 42 John McEnroe (1984) yesterday.
he looks certain to replace the Bell said: “It will be different facing
Spaniard at the top of the rankings in 41 Bjorn Borg (1979-80) them with no Murali, but Sri Lanka,
the next few weeks. = Roger Federer (2006-07) out of all the subcontinent sides,
His coronation could even come at 39* Novak Djokovic (2010) always have streetwise cricketers. We
the French Open, which gets under- are going to have to bowl well against
way on Sunday. His main rival for a
*ongoing them, that’s for sure.”

WEST HAM
NEIL Club bullish on £90m Olympic
WARNOCK Stadium move despite drop
Pros: Proven track
record with seven
career promotions.
Outstanding motivator
Cons: Direct style of
play not in keeping
with club’s traditions.
Seve’s death was tragedy but Ryder
Cup must go to most suitable venue
GOLF COMMENT
SAM TORRANCE
T
ODAY the venue for the 2018
Ryder Cup will be
announced, and following
the sad passing of Seve
Ballesteros, there have been
renewed calls for the Spanish can-
didate to be awarded the event.
Seve was a dear friend a tremen-
dous champion, yet no man is big-
ger than the game, and the most
important factor in this decision is
that the Ryder Cup is held at the
Ba room brawl at
end of term party
▲
FOOTBALL
BY JAMES GOLDMAN
WEST HAM’S miserable week
descended into farce at the
club’s end-of-season gala
dinner as police were
called in order to break
up fights between fans
and security guards.
The trouble was
allegedly sparked by
the refusal of striker
Demba Ba (right) to
sign an autograph for a
supporter, who paid £275
in order to attend the event, at
London’s Grosvenor House Hotel.
The Senegal international is
said to have turned down the
FOOTBALL
▲
WEST HAM insist relegation from
the Premier League will not affect
their plans to move into the
Olympic Stadium after the
London 2012 Games.
Concerns have been raised that
the huge financial hit and the
lower average gates caused by
right place. France look like
favourites to win the race,
although Spain is sure to have a
stronger emotional case as a result
of Seve’s death.
On a happier note, it was fantas-
tic to see Darren Clarke winning
the Iberdrola Open in Majorca,
beating Chris Wood by three shots.
I’m absolutely delighted.
Darren’s a true gent and it’s nice to
see him back where he belongs, at
the top of the leaderboard.
He played beautifully too, while
Wood had a final round to forget,
although at 23 he’s a great young
player and I’m sure he’ll learn from
the experience of losing.
Over the pond at the Players
Championship, Graeme McDowell
had a tough day as he went from
joint leader with 13 to play to fin-
ish 33rd. He may have had to get up
at 4:30am to play the rest of his
request on account of being “too
tired”.
That snub led to the enraged
fan abusing the player and as
security staff attempted to
calm the situation
punches and plates
were thrown and
tables turned over,
while it was
claimed that one
fan high-kicked a
glass vase from a
table.
West Ham’s players
had been instructed to
turn up to the event and
warned by letter they would face
a fine of a week’s wages if they
failed to do so.
dropping into the Championship
could force Hammers chiefs to
consider abandoning the reloca-
tion, which will cost £90m.
But a club spokesperson said:
“We remain totally committed to
it. Our bid was modelled on
Premier League, Championship
and different scenarios – that has
been the case from day one.”
third round but that is no excuse
whatsoever – in life you’ve got to
contend with the bumps.
McDowell just played badly, but
it was a fantastic finish from KJ
Choi, a beautiful player, and David
Toms, who put in a great perform-
ance at his age.
Luke Donald had another very
strong finish and is up to No2 in
the world. He could even overtake
Lee Westwood this weekend and is
doing lots right.
Meanwhile I’m getting ready to
return to action next week at the
US Senior PGA Championship.
I am not playing at this week’s
European Seniors Tour event in
Spain because I have other commit-
ments and the preparation would-
n’t be right, but I don’t feel too bad
at all. It’s been two and a half
months since I last competed so
I’m raring to go.
31
SPORT | IN BRIEF
Busquets clear to face United
FOOTBALL: Barcelona midfielder Sergio
Busquets will play in next Saturday’s
Champions League final after Uefa found “a
lack of strong evidence” that he had racially
abused Real Madrid’s Marcelo.
Westwood handed tough draw
Denmark’s Anders Hansen and Australia’s
Aaron Baddeley in the group stages of the
Volvo World Match Play Championship.
Fans start to count cost of tickets
OLYMPICS: London Olympic Games organis-
ers have begun deducting money from Visa
accounts for ticket orders, a process that
GOLF: World No1 Lee Westwood will face will take several weeks up until 10 June.
Results
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email sport@cityam.com
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