Issue 1,187 Thursday 29 July 2010
BUSINESS WITH PERSONALITY
EASYJET ROW
TURNS NASTY
▲
AVIATION
BY EMMA SADOWSKI
A BITTER war of words broke out between
easyJet founder Sir Stelios Haji-Ioannou and
the budget airline over its poor punctuality
yesterday adding fresh fuel to ongoing ten-
sions over their branding agreement.
Stelios, who quit the board in May in a
row over strategy but whose private holding
company, easyGroup, owns the “easy” brand
and licenses it, sent a scathing letter to
chairman Sir Michael Rake demanding
easyJet improve its performance by 17
October. If there is no improvement, he
warned he would terminate the airline’s
ability to use the name and orange brand.
He criticised the company for being in an
“operational mess” and said that there were
“too few staff to meet the number of flights
sold”. He also lashed out at easyJet manage-
RIM HOPES TO KILL iPHONE
TELECOMS
▲
BY STEVE DINNEEN
BLACKBERRY maker Research In Motion
(Rim) is expected to announce the release
of its new “iPhone killer” handset next
week.
It is understood the firm will unveil its
9800 model touchscreen smartphone at a
press conference in New York on Tuesday.
The launch has special significance for the
firm which has seen its share price drop 21
per cent this year after struggling to keep up
with rivals including the iPhone and
Google’s Android range.
It hopes the new model – thought to fea-
FTSE 100 ▼ 5,319.68 -45.99 DOW ▼ 10,497.88 -39.81
FREE
At odds: easyJet boss
Carolyn McCall (l) and
founder Sir Stelios Haji-
Ioannou Pictures: GETTY
ment saying that several years of “building
goodwill is being eroded” due to delays and
cancellations.
let this
nd I cannot stand by and
As the owner of this bra e served a cure notice demand-
happen. This is why I hav ctuality and cancellation per-
pun
ing easyJet improve its
formance.
taken to
necessary steps are not
Rest assured that if the to an acceptable level such that
improve the performance n of the easyJet brand can start
tio
the goodwill and reputa itate to terminate the licence.
rebuilt, I will not hes
to be
Regards
Stelios
Newly appointed
easyJet chief executive Carolyn McCall, who
has only been in the job for three weeks,
ture a slide-out keyboard similar to the latest
offerings from Motorola and Nokia – will
stop the hemorrhaging of customers to the
likes of Apple.
Tom Gidley-Kitchin from Charles Stanley
stressed the importance of this launch for
Rim. He told City A.M.: “The BlackBerry’s
basic strength – email on your phone – has
been eroded as this function has become
available across the board.
“Rim needs to try and make its handsets
fashionable again if it is going to be able to
compete. Will this launch be enough? I sus-
pect not.
“The new Android phones are increasing
competition in every section of the market.
NASDAQ ▼ 2,264.56 -23.69
www.cityam.com
CAMERON
IN INDIA
TRADE
DEALS
FOR UK
FIRMS
NEWS: P5
admitted yesterday while delivering the air-
line’s third quarter results that there was an
issue with punctuality.
She said: “There are crew shortages in cer-
tain places and we need to get to the bottom
of why.”
But easyJet, which is engaged in a long-
running dispute with Stelios over its growth
plans, struck back saying it hasn’t breached
any conditions that would allow Stelios to
terminate its brand license.
A spokesperson for the airline said:
“[Stelios’] threats have no legal basis.”
EasyJet has just concluded a court battle
with Stelios over the use of the licence for
non-airline products such as car hire.
Meanwhile, despite taking a £65m hit from
the volcano disruptions, easyJet posted a 5.3
per cent rise in revenue over the last three
months to £759.2m. It still expects full-year
pre-tax profit in the range of £100-150m.
“We will see a whole range of new devices
coming out over the next few months pow-
ered by the new ARM chip that came onto
the market earlier this year. This should
make for some pretty impressive phones.”
Rim will be keen to get its new offering on
shelves in time for the lucrative back-to-
school market.
AT&T is expected to exclusively carry the
phone in the US. O2 has been tipped to win
the contract in the UK.
Rim and the major UK carriers declined to
comment.
Certified Distribution
31/05/10 till 04/07/10 is 103,725
£/$ 1.56 unc £/¤ 1.20 unc ¤/$ 1.22 unc
 2 News
World trade is continuing to recover
EDITOR’S LETTER
ALLISTER HEATH
WORLD industrial production has
overtaken its pre-recession peak – that
is the key finding from one of the
world’s most useful economic surveys,
produced monthly by the Dutch
Statistics Bureau. The Netherlands are
a key hub for world trade; local statis-
ticians are experts at crunching the
numbers. Ian Harwood, chief econo-
mist at Evolution Securities, is one of
the few in the City who monitors
these crucial figures; it is high time
others followed suit.
The Dutch surveys reveal that dur-
ing the second half of 2008 and early
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
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Sales Director Jeremy Slattery
Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
ICBC SAYS IT WILL RAISE £4.26BN
Industrial and Commercial Bank of
China, the world’s largest lender by
market value, said yesterday it
planned to raise up to £4.26bn in a
rights issue in Hong Kong and
Shanghai to shore up its capital base.
The rights issue is the latest in a
string of fundraising plans from
China’s state-controlled banks, which
intend to raise tens of billions of dol-
lars in the coming months to
strengthen their balance sheets after
an unprecedented lending spree last
year.
SPRINT REPORTS NARROW LOSS
Strong demand for HTC’s Evo smart-
phone helped Sprint Nextel, the third
largest US mobile network operator,
add wireless subscribers for the first
time in three years and report a nar-
rower than expected loss in the sec-
ond quarter.
2009, world production and trade col-
lapsed, partly because the crunch
neutered the financing which under-
pins commerce and partly because of
a slump in demand from firms for
capital goods. Trade fell much more
sharply than overall output and
employment, which is one reason why
export-orientated Germany (with no
housing collapse and a small finance
sector) suffered as much as Britain
during the recession. The global
plunge in manufacturing and trade
was arrested in 2009 and subsequently
reversed. World industrial production
finally surpassed its March 2008 peak
in May 2010, the most recent period
for which figures are available; the
geographical composition of world
output, needless to say, has changed
drastically: up in Asia, down in the UK
and Europe. The world has recovered
but power has shifted East.
World trade has also enjoyed a sus-
tained recovery. Unlike actual produc-
tion, however, total export and import
volumes still remain just below their
Growth slows
in parts of US
US ECONOMY
▲
BY STEVE DINNEEN
ECONOMIC growth in parts of the US
is at risk of grinding to a halt, height-
ening fears of a double-dip recession.
The Federal Reserve’s latest Beige
Book survey, released yesterday, and
tracking 12 regions showed growth in
Atlanta and Chicago had slowed and
Cleveland and Kansas City had held
steady. Other regions were described
as having “modest” growth in eco-
nomic activity.
While most areas saw some
increases in manufacturing, half
reported a slowing in activity. Car
sales in most regions declined and
the housing market continued to
struggle.
The staggered road to recovery has
been blamed on high unemployment
and low consumer confidence.
DANONE SELLS STAKE IN JUICE MAKER
Danone has sold its stake in a
Chinese juice maker for €200m
($166m), less than half the amount
Coca-Cola was prepared to pay in a
deal that collapsed last year. The
value of Danone’s stake in Huiyuan
Juice Group has fallen sharply since
the Chinese government blocked
Coca-Cola from taking over the coun-
try’s largest privately owned juice
producer.
SAP RAISES ITS SALES OUTLOOK
SAP slightly raised its sales outlook
for the full year, in a move that
failed to achieve market hopes for a
bolder forecast from the German
business software maker. The
world’s largest business software
group by sales said it expected rev-
enues from software and related
services to climb by six to eight per
cent at constant currencies in the
full year, at the upper end of the
previously forecast range of four to
eight per cent.
highs of early 2008.
There is plenty more evidence that
trade continues to grow: the IATA
monthly air traffic report for June
shows that freight volumes rose again,
and are now up by 27 per cent year on
year. To put all these figures into per-
spective, total world trade has almost
tripled since 1990, Harwood’s data
show, as the world economy under-
went the greatest period of wealth cre-
ation and integration in its history.
Asian economies are leading the
growth, but they are not the only
ones: Latin America is buoyant and
even the West has seen a breathtaking
bounce-back in trade.
Speaking of which, some of the
gloom about the US economy yester-
day was overdone: while overall new
durable goods orders fell for the sec-
ond consecutive month as a result of
volatility in aircraft orders, the key
capital goods orders surprised by its
strength. Capex orders rose 0.6 per
cent last month and May’s gain was
revised up to 4.6 per cent. The US is
However, the figures will allay the
worst fears that the US economy has
stopped growing altogether.
Fed chairman Ben Bernanke has
said he will hold rates at their
record low levels for the foreseeable
future.
Meanwhile, California governor
Arnold Schwarzenegger declared a
state of emergency over the state’s
finances yesterday, raising pressure
on lawmakers to negotiate a state
budget that is more than a month
overdue and will need to meet a
$19bn shortfall.
Fed chairman Ben
Bernanke has said he
will keep rates at their
record lows for the
foreseeable future.
BIG FOUR BANKS PASS STRESS TEST
Britain’s big four high street banks
would together write off £119bn —
equivalent to more than five years’
profits — if they encountered a reces-
sion and sovereign debt crisis of the
scale and severity described last week
in the Europe-wide stress test. While
British banks passed that test com-
fortably, with their capital levels
judged more than adequate to cush-
ion such losses, the numbers illus-
trate the huge sums at risk from
significant adverse events.
WORLD CUP BOOSTS REXAM PROFIT
Rexam, the world’s largest beverage
can maker, scored a 47 per cent rise
in pre-tax profits thanks partly to spe-
ciality cans. A range of World Cup
promotional beer cans featuring the
likes of Lionel Messi and Kaka played
to Rexam’s advantage in the first six
months of the year.
undergoing a private sector, corporate
investment led recovery, even though
consumer spending and the housing
market remain subdued. In part, of
course, this is because capital outlays
were slashed sharply in 2008-09 and
much pent-up demand therefore
remains – especially in IT. However,
the main reason is that companies are
reasonably confident, despite the
ambient gloom, and in an ultra-com-
petitive marketplace they need to con-
tinue to spend on new technologies,
computers, software and machines.
Yet major risks to the recovery
remain. Excessively weak monetary
growth figures in the US and
Eurozone are a worry, and Western
economies cannot go on with near-
zero official short-term interest rates
for ever. As some point, rates will have
to rise and other forms of central bank
liquidity will also have to be switched
off. This process must be managed
gently and carefully – it certainly can-
not be delayed for ever.
allister.heath@cityam.com
Incoming Sage chief executive Guy Burruyer will take the helm in October
Sage bids for TeamSystem
TECHNOLOGY
▲
BY STEVE DINNEEN
ACCOUNTING software group Sage is
first in line to snap up Italian busi-
ness management software group
TeamSystem for an estimated €650m
(£542m).
TeamSystem, which has been put
on the market by private equity vehi-
cle Bain Capital, will close the bid-
ding tomorrow.
It is understood HgCapital and
Cinven are also interested in the firm.
SKY TO LAUNCH 3D CHANNEL
Sky will fully launch its 3D channel
on October 1 but will only be available
to those with the Sky+ HD package
and a 3D-enabled television. The sta-
tion has been live since 3 April, but
other than six Premier League foot-
ball matches, has only been playing
promotional snippets of 3D footage.
OIL RIG SAFETY CHECKS TO START
UK safety officials have begun a crack-
down on elderly North Sea oil and gas
rigs, at the same time as it emerged a
clutch of US federal regulators are
preparing to begin a formal investiga-
tion into whether BP and its partners
drilling the ill-fated Macondo well
contributed to the Gulf of Mexico
spill. The two separate moves – on
either side of the Atlantic – highlight
the seriousness with which regulators
are treating the industry since the
well’s 20 April explosion.
CITYA.M. 29 JULY 2010
NEWS | IN BRIEF
Carphone beats forecasts
Carphone Warehouse, Europe’s top
mobile phone retailer, beat quarterly
revenue forecasts, boosted by demand
for smartphones, and said its megastore
partnership with US group Best Buy had
a successful launch. The British group
said it remained cautious about the eco-
nomic environment but was confident of
achieving its full-year guidance.
New Fannie rules paying off
Stricter lending standards adopted last
year by Fannie Mae are beginning to pay
off as the mortgage finance giant's “new
book” of business is the strongest in a
decade, the firm’s chief executive said
yesterday. Fannie Mae is emphasising
safer, long-term, fixed-rate loans.
Google talks over Facebook rival
Google has held talks with gaming com-
panies as it looks to develop a new serv-
ice to compete with social networking
website Facebook. The internet giant has
had talks with makers of online games
for the service including Playdom,
Electronic Arts Playfish and Zynga Game
Network, according to people close to
the matter. PLAYDOM: P16
Bain stands to make a healthy
return on the €274m investment it
made in the business in 2004.
Sage, which has more than 6m
small and medium-sized business cus-
tomers, said yesterday it had seen
improved growth trends in the third
quarter, and it saw full-year results in
line with market expectations.
Chief executive Paul Walker, who
steps down in October after 26 years
with the company, will be replaced by
Guy Burruyer, head of mainland
Europe and Asia.
ADOBE TO BUY DAY SOFTWARE
Adobe said yesterday it has signed a
definitive agreement to launch a pub-
lic tender offer to acquire all of Day
Software’s shares for about $240m
(£185m) in, a move that highlights
the expansion of its portfolio of web
content-management offerings.
Adobe will acquire the shares at 139
Swiss francs each in cash, said Rob
Tarkoff, who runs Adobe’s Digital
Enterprise Solutions group.
RUSSIA’S DST PLANS IPO
Russian Internet firm Digital Sky
Technologies has hired investment
banks to organize an initial public
offering in 2011, a person familiar
with the plans said. DST chose
Goldman Sachs, which has a stake in
the company, and two other invest-
ment banks for an IPO on a global
stock exchange, most likely in
London.
CITYA.M. 29 JULY 2010
AstraZeneca in drug victory
PHARMACEUTICALS
▲
BY HARRY BANKS
ON THE eve of its first half results, US
pharma company AstraZeneca scored
a vital regulatory victory.
US advisers backed a potential
blockbuster blood thinner from the
firm which will help to offset expir-
ing patents on some of its best-selling
medicines.
Members of a Food and Drug
Administration panel voted 7-1 to rec-
ommend approval of Brilinta for
patients suffering from heart attacks
BP launches
$30bn sale of
global assets
BP IN CRISIS
BY EMMA SADOWSKI
BP YESTERDAY kick-started its $30bn
(£19bn) asset sale, with a number of
potential buyers already lining up just
one day after announcing the move.
It is understood that BP is already in
talks with a number of buyers, includ-
ing India’s Reliance Industries and
Essar, to sell off £500m in African
retail assets.
The group has already signed a deal
with US rival Apache for $7bn in
Canadian, American and Egyptian
assets, with expectations that BP
could also put its stake in Alaska’s
Prudhoe Bay field and its stake in Pan
American Energy up for sale.
Analysts criticised BP’s plans and
said management should “start
thinking radically to recover share-
holder value”.
The spill, which is temporarily
stopped, reached its 100th day yester-
day, with hopes that a relief well will
be drilled by early next week.
or chest pain who need drug therapy
or an artery-clearing procedure.
Analysts predict Brilinta’s sales will
top $1bn (£640m) a year based on
strong results showing the medicine
reduced deaths and heart attacks.
AstraZeneca shares, which surged
in the final hour of regular trading to
finish 3.2 per cent higher on the New
York Stock Exchange, gained another
2.6 per cent in after-hours trade to
$52.84, following the panel vote.
The company overcame doubts
about Brilinta’s effectiveness in US
patients. In a clinical trial of 18,000
Criminal and civil investigations
into the cause of the 20 April explo-
sion are examining whether BP and
companies involved in the Deepwater
Horizon rig had misled or misin-
formed regulators and shareholders
over the event.
“There will be a criminal inquiry as
well as civil investigation and it
involves more than simply BP,” said US
Attorney general Eric Holder.
BP also faces a number of private
lawsuits and claims for compensation
from the spill that damaged fishing
areas and tourist sites.
ANALYSIS l BP
600 p
550 402.50
28 Jul
500
450
400
350
300
250
10 May 28 May 18 Jun 8 Jul
News 3
ICBC to tap shareholders
patients, the relatively small group
in £4.26bn rights issue
from North America saw no benefit.
ANALYSIS l AstraZeneca “to ensure the healthy development
▲
BANKING
3,300 p
3,208.00 of our business and to boost our
28 Jul INDUSTRIAL and Commercial Bank bank’s competitiveness, as well as its
3,200
of China, the world’s most valuable resilience to risks and its sustainabili-
3,100 bank, has set out plans to raise up to ty in profits.”
45bn yuan (£4.26bn) through a rights Big state-owned Chinese banks,
3,000
issue, the latest of a series of mam- including the Bank of China, are seek-
2,900 moth fundraisings by Chinese ing to replenish funds depleted by
lenders to shore up their capital base. last year’s record government-direct-
2,800 The rights issue will be on a 0.6 for ed lending spree and to meet higher
2,700
10 basis to existing shareholders, capital requirements dictated by reg-
10 May 28 May 18 Jun 8 Jul 28 Jul ICBC said, adding that the offer was ulators.
Lazard beats
IAN NORRIS FACES FIVE YEARS IN PRISON
forecasts with
strong quarter
▲
BANKING
INVESTMENT bank Lazard’s quarterly
earnings soared a better-than-expect-
ed 58 per cent, helped by strong asset
management results.
The New York-based firm said its
key financial advisory business was
growing, even as a sluggish mergers
and acquisitions market and con-
cerns about European economics
have plagued competitors and
weighed on results.
Lazards second-quarter profits were
$44.57m (£28.6m), up from $28.19m a
year ago.
The bank’s asset management divi-
sion performed particularly well,
with operating revenue rising 42 per
cent to $187.2m. Management fees
jumped 56 per cent to $167m, and
assets under management were
$123.5bn, up 26 per cent.
Lazard chief financial officer
Michael Castellano said the firm has
made a commitment to turn the asset
management business around, and it
is paying off.
He said: “While the markets are
correcting, we are not seeing a flight
of assets. Institutional clients are still
hanging in there.”
IAN Norris, former chief executive of Morgan Crucible, is facing five years in prison Key clients are also sticking with
and a fine of £250,000 (£160,000) after being found guilty of conspiring with others to Lazard’s financial advisory business.
obstruct justice. Norris was extradited to the United States in March 2010 on the Second-quarter M&A and strategic
three obstruction charges dating back to 2004. Sentencing has been scheduled for 2 advisory revenue was $145.9m, up
28 Jul November 2010. Picture:PHOTOSHOT eight per cent.
 4 News CITYA.M. 29 JULY 2010

Coca-Cola profits up COALITION’S ELECTRIC SHOCK

imagine, as we come out of Labour Coca-Cola and Diet Coke drinks.

▲

CONSUMER
Day than we are today,” said Steve Shares in Coca-Cola closed down
BY MARION DAKERS Cahillane, head of North American 0.3 per cent at $54.68 in New York
COCA-COLA Enterprises reported operations. trading yesterday.
higher-than-expected quarterly profit The company raised its 2010 earn-
and raised its 2010 forecast yesterday, ings forecast to $1.73 to $1.77 a share, ANALYSIS l Coca Cola
which it credited to World Cup pro- saying the jump could have been clos- 56 $ 54.68
motions and slight price increases in er to $1.83 if it weren’t for 55
28 Jul
North America. unfavourable exchange rates.
54
The firm, which bottles and distrib- Volume rose 5.5 per cent in Europe
utes drinks on behalf of Coca-Cola, in the second quarter, propelled by 53
said net profit rose to $356m (£228m) the introduction of Ocean Spray cran- 52
in the second quarter, from $313m a berry juice and expanded distribu-
year earlier. tion of the Capri Sun brand. 51
However, it warned revenue in Sales volumes were also up in 50
America will be flat for the rest of the America, with a rise of 0.5 per cent 49
year. “We’ll be less cautious, I would concentrated largely on its trademark 3 May 21 May 11 Jun 1 Jul 22 Jul

THE coalition government will commit £43m over 18 months to subsidise the uptake of
electric cars, the department for transport (DfT) said yesterday. Motorists will receive up
to £5,000 towards the purchase of a low-carbon car from January 2011 to March 2012,
transport secretary Philip Hammond said. The amount is less than the £250m pledged
by the previous government. Picture: REUTERS

Shares in Chalco
are suspended as
deal with Rio nears
Under that deal, Chinalco –
▲

MINING
BY STEVE DINNEEN
SHARES in Aluminium Corp of
China (Chalco) were suspended yes-
terday, as a deal with Rio Tinto is
expected to be finalised by this
morning.
Chalco shares stopped trading in
both Shanghai and Hong Kong as the
company said it was “discussing
important issues”, according to
announcements in both markets.
A signing ceremony will be held in
Beijing to finalise a deal – expected
to involve an agreement over an
iron-ore project in the Simandou
region of Guinea.
The two firms signed a non-bind-
ing $2.9bn (£1.9bn) pact in March to
jointly develop the iron ore mine in
Simandou.
Chalco’s parent company – was due
to pay Rio $1.35bn over two years to
take up its 44.65 per cent stake.
Rio has been considering whether
to sell its interest in the area to its
Chinese partner after experiencing
difficulties with the project.
Half of its rights to develop the
area were granted to rival BSG
Resources after the Guinea govern-
ment accused Rio of not moving
quickly enough.
Chalco told investors shares would
resume trading tomorrow.
Chinalco holds a stake of around
nine per cent in Rio. It had a propos-
al to buy an even bigger slice of the
firm rejected last year.
Spokesmen from both Chinalco
and Rio Tinto both declined to com-
ment.

NEWS | IN BRIEF
Arcelor Mittal profits surge 43pc
Steel giant Arcelor Mittal yesterday
reported a big jump in profits between
April and June, with sales up as the glob-
al economy picks up. Net profit was
$1.7bn (£1.1bn), compared with a loss of
$792m in the same period a year earlier
and a profit of $679m in the previous
quarter. Revenue for the period rose by
43 per cent, from $15.2bn to $21.7bn.
FSA bans Simply Trading bosses
The Financial Services Authority (FSA)
has publicly censured three traders and
banned them from senior management
positions for falling short of FSA stan-
dards. The FSA said the three directors
of Simply Trading relied too heavily on
consultants for advice on how to run the
business.Stephen Coles, Luke Ryan and
Michael Yamoah also failed to properly
monitor two of their representatives,
leading to a serious risk of investors
receiving unsuitable investment advice.
Yell warns on revenues for 2010
Yellow Pages firm Yell has warned rev-
enues will remain under pressure as
small businesses continue to fret about
the pace of economic recovery.
The directories firm reported a 10.6 per
cent drop in revenues for the three
months to 30 June and said underlying
earnings were down by a similar rate.
CITYA.M. 29 JULY 2010
Vince Cable’s (l) comments on
an immigration cap have
undermined the PM’s (r) trip
Migrant row
overshadows
Indian deals
▲
POLITICS
BY DAVID CROW
DAVID Cameron yesterday smoothed
the way for a flurry of deals with India
on a trade mission to the emerging
superpower, but simmering tensions
over plans to cap immigration in
Britain threatened to turn into a full-
scale row.
The Prime Minister is leading a 90-
strong delegation, which includes top
business figures like Barclays boss
John Varley and London Stock
Exchange (LSE) chief Xavier Rolet, in a
bid to improve economic ties with the
region.
Yesterday, BAE Systems and engine
maker Rolls-Royce signed a £700m
deal to build 57 Hawk training jets to
train pilots in the Indian military.
Around £500m will go to BAE and
£200m to Rolls-Royce.
The LSE signed a pact with India’s
National Stock Exchange (NSE) which
promised closer cooperation. Both said
they would explore the possibility of
linking the FTSE 100 Index to the NSE,
while the NSE would in turn license
its Nifty 50 Index for trading options
and index contracts in London.
And Xchanging said it would spend
£4m to build a processing centre in
Karnataka, while construction giant
JCB is expected to unveil a deal today.
Cameron also said he would remove
barriers that stop Britain exporting
civil nuclear technology India, open-
ing the way for Serco, Amec and Rolls-
A NEW ORDER IN
ANGLO-INDIAN
RELATIONS?
WHEN George Osborne rung the bell
at the Bombay Stock Exchange, he
was trying to ring the changes in
Anglo-Indian relations. He said negoti-
ations over an EU-Indian free trade
agreement, which have entered their
fourth year, needed to be concluded –
and fast: if a deal is struck, it could be
worth €4.5bn (£3.7bn) to the regions
by 2020. Although the chancellor was
on a charm offensive, he reminded the
hosts this was a two-way street. He
wants to smooth the way for British
Focus on India 5
Top UK business figures, includ- George Osborne rings the open-
ing Barclays boss John Varley ing bell at the Bombay Stock
(2nd left of Osborne), are on the Exchange
Pictures: GETTY trip Pictures: GETTY Pictures: GETTY
Royce to win business in the region.
The string of deals was overshad-
owed by an escalating row over plans
to impose a cap on non-EU economic
migrants, which has become a hot-
button issue in India, where politi-
cians and businessmen say it amounts
to a fear of protectionism. They are
worried it could stem the flow of
opportunities that are currently avail-
able to high-flying Indian graduates.
Vince Cable, the Liberal Democrat
business secretary that argued for an
amnesty on illegal immigrants in the
run up to the election, exacerbated
the situation by repeating his opposi-
tion to a cap. And he said he wanted
the regulations to be administered
with a “light touch” when they come
in. An aide to home secretary Theresa
May, who is responsible for immigra-
tion, said: “The Prime Minister has set
out what the policy is. Last time I
checked, he was in charge of the gov-
ernment – not Vince Cable.”
BEN GRIFFITHS: P16
ANALYSIS l BAE Systems
360 p
350
317.00
340 28 Jul
330
320
310
300
10 May 28 May 18 Jun 8 Jul 28 Jul
banks and insurers to enter the emerg-
ing superpower, and reminded the
Indians they had promised to raise a
cap on foreign investment from 26 per
cent to 49 per cent. Aides to Osborne
say this is all about boosting exports
and inward investment, fitting with
the oft-repeated intention of aiding a
private-sector recovery. India is
already Britain’s biggest manufactur-
ing employer (Tata has 47,000 UK
employees), but Osborne wants them
to buy more of our goods and services.
He has his work cut out, however: a
younger generation of Indian high-fly-
ers see America – not Britain – as the
real place to forge economic ties. An
immigration cap in the UK is unlikely
to change their minds. By David Crow
 6 News
Lloyds to hold
its stake in St
James’s Place
▲
WEALTH MANAGEMENT
BY OLIVER SHAH
LLOYDS BANKING GROUP yesterday
said it would keep its 60 per cent
share in St James’s Place (SJP) for the
timebeing, extending uncertainty
over the timing of an eventual sale.
Lloyds said it had “no intention to
sell down or dispose of its stake in St.
James’s Place at this time”.
Management hoped the announce-
ment would put an end to the over-
hang on the wealth manager’s share
price, which has been held down as
traders anticipated a bulk placing of
Lloyds’ stake at a discount, but ana-
lysts were unconvinced. One said a
sale was now unlikely over the next
12 months, but said: “The black cloud
hovering over St. James’s Place has
turned into a grey cloud”.
Shares in SJP rose 6.6 per cent to
273.3p as the private client specialist
beat analyst consensus with a half-
year pre-tax operating profit of
£162.1m. Low interest rates and high-
er income tax helped tempt savers
into products such as Isas, sending
first half new business sales up 44 per
cent to a record £293m.
SJP confirmed an interim dividend
of 2p per share and a net asset value
of 295p on a European embedded
value basis. Pre-tax profits jumped 82
per cent to £36.3m on an IFRS basis.
Chief executive David Bellamy told
City A.M. the firm recruited nine per
cent more senior staff last year. The
strengthened workforce was able to
win more business, Bellamy said,
saluting the “professionalism and
growth in the partnership”.
ANALYSIS l St James’s Place
273.30
280 p
28 Jul
270
260
250
240
230
220
210
200
10 May 28 May 18 Jun 8 Jul
Rathbone boss Andy Pomfret said clients were searching for income
Rathbones keeps banking
licence and grows profits
WEALTH MANAGEMENT
▲
BY OLIVER SHAH
RATHBONE BROTHERS, the FTSE 250
investment manager, has decided to
keep its banking licence after a
review concluded dropping it would
incur unnecessary costs.
Chief executive Andy Pomfret told
City A.M. the banking licence brought
in £4m per year and carried a certain
degree of prestige. Changing
28 Jul Rathbones’ status with the FSA to a
client money business would be oner-
ous and expensive, Pomfret said.
Rathbones, which traces its history
back to 1742, grew pre-tax profits 11.3
per cent to £15.8m in the first half.
Total funds under management were
up 1.5 per cent to £13.3bn, including
the impact of funds transferred from
Lloyds Banking Group.
But Pomfret said there was a devel-
oping trend of retired clients pulling
out capital to replace income lost
from banking stocks and BP.
CITYA.M. 29 JULY 2010
Brewin Dolphin
investment fee
income surges
FINANCIAL SERVICES
▲
INVESTMENT management firm
Brewin Dolphin saw income jump by
almost a fifth over the third quarter
of its financial year, though it warned
the performance of the group going
forward would be at the mercy of the
financial markets.
Brewin’s investment management
revenue soared 27.5 per cent to
£55.3m over the quarter, though this
was partially offset by a decline in the
income the firm received on its client
deposits as interest rates fell.
The group’s discretionary funds
under management have strength-
ened by 10.2 per cent to £13bn since
the end of the previous financial year
last September, compared to a 1.7 per
cent rise in the benchmark FTSE
APCIMS private investor series bal-
anced portfolio. The FTSE 100 index
declined by 0.7 per cent over the nine-
month period, to 5,046 as of 27 June.
However, Brewin’s corporate advi-
sory and stockbroking arm, which
accounts for just 3.3 per cent of the
group’s revenue, was hit by the turbu-
lent economic environment, with rev-
enue dipping 13.1 per cent to £2.02m
in the third quarter.
“In the short term, the group’s
trading performance is very depen-
dant on markets,” Brewin warned in a
statement.
CITYA.M. 29 JULY 2010 News 7

Independent FinnCap doubles

revenue amid market turmoil
firm confirmed it had remained prof- cess was due to its proactive broking
▲

FINANCIAL SERVICES
BY VICTORIA BATES
FINNCAP, the broker chaired by pri-
vate equity stalwart Jon Moulton,
more than doubled its turnover over
the last year after making strides in
new client wins and completing a
management buyout from its former
parent JM Finn.
FinnCap’s sales rose 56 per cent to
£7.8m over the year to April, while the
itable over the period despite a bleak
small cap market environment.
The firm, led by Sam Smith, one of
the City’s most successful female
bosses, has added 12 new corporate
clients since last year, taking its tally
up to 68. It raised £120m for its clients
over the past 12 months.
Better Capital founder Moulton,
who joined as non-executive chair-
man in January, said the firm’s suc-
of growth firms. “We see smaller cap
companies as deserving and needing
capital to grow and prosper,” he said.
“The banks are not filling this fund-
ing gap and the UK equity markets
can play a major role.” Jon Moulton, left,
Smith added that June had been joined Sam
one of the firm’s best months for Smith at the
years in terms of deals, completing helm of FinnCap
placings for a number of clients, earlier this year
including miner Jubilee Platinum.

Brit in talks Halifax Mortgages

after £850m
We know that it’s expensive moving home or buying a house for the first time.
So, to help lower the cost of your move, at Halifax we’ve cut our product fee in
half across a number of mortgages. Just apply on or before 9th August 2010.

To find out more go online at halifax.co.uk/mortgages

Apollo offer or call 0845 122 1511

Crucially, tangible net assets (TNA)

▲

INSURANCE
BY OLIVER SHAH
BRIT INSURANCE is sounding out its
largest investors after opening its
books to US private equity house
Apollo on the basis of a £850m indica-
tive offer yesterday.
Brit agreed to due diligence after
Apollo raised its approach for the
third time to £10.75 per share, just
shy of the magic £11 per share touted
by analysts. The offer included 30p
per share pledged by the insurer to
shareholders in its interim results.
Chief executive Dane Douetil is
speaking to investors including
Schroders, Jupiter Asset
Management, Axa and Legal &
General Investment Management,
who own significant amounts of Brit
stock. Their opinions will influence
whether a deal goes ahead.
The development came as Brit
smashed forecasts with a 12 per cent
rise in first-half profits to £72.8m.
Gross written premiums were 13.4
per cent lower at £851.5m. The claims
ratio – stripping out the impact of the
Chilean earthquake and an Air
France crash – was down nine points.
per share grew 4.6 per cent to £11 by
the end of June. TNA is the number
cited by insiders in reference to the
price Apollo should pay for Brit.
The announcement pleased ana-
lysts, whose profit estimates had
ranged between £15m and £65m.
Mark Williamson at KBC Peel Hunt
said it was “likely a positive spin has
been put on [the] numbers” in light of
Apollo’s interest, but commended the
company’s discipline in terms of writ-
ing new business.
Brit’s shares closed up 10 per cent
at £10.05. Before Apollo arrived they
were trading at around 729p, or a 31
per cent discount to TNA.
ANALYSIS l Brit Insurance
p 1,003.00
1,000 28 Jul
950
900
850
800
750
700
19 May 9 Jun 29 Jun 19 Jul

ADVISERS stake in Trader Media, which owns

PHILIP NOBLET
WEST HILL AND
MERRILL LYNCH
ADVISING Apollo on its wooing of
Brit Insurance are boutique bank West
Hill, run by former HSBC veteran
Andrew Galloway, and a Merrill Lynch
team led by Philip Noblet.
West Hill advised long-only activist
fund Crystal Amber on its £60m Aim
listing in 2008. It has worked on
numerous deals in the insurance space.
Noblet, head of multi-industries
mergers & acquisitions (M&A) at
Merrill Lynch, acted for Carlyle Group
in its unsuccessful £600m pursuit of
waste processing company Shanks in
March. He also advised Guardian
Media Group on its disposal of its
Auto Trader, in 2007.
They have been up against Brit
advisers Lexicon Partners and
JPMorgan Cazenove.
Angus Winther is leading the effort
at Lexicon. Winther, a Durham gradu-
ate who has previously worked at
Chase Manhattan Bank and
Donaldson, Lufkin & Jenrette, is no
stranger to Brit. He helped rival Lloyds
of London insurer fend off an
approach from the sponsor of the
England cricket team last year.
Winthers also guided specialist
insurer Beazley through its £150m
rights issue in the spring of last year.
Apollo’s side has made a break-
through by forcing Brit to open its
accounts for checking, but no cham-
pagne corks were popping yesterday.
Advisers know the deal could still be
scuppered by disagreements over YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
price between Apollo, Brit’s manage- Terms and conditions apply. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound,
ment and institutional shareholders. Edinburgh EH1 1YZ. Available to homemovers, first time buyers, remortgage customers and buy to let customers. Offer available by phone,
online or in branch. We may monitor and record calls. Lines are open Monday-Friday 8am-8pm, Saturday 9am-4pm. Compliance number 10/04102
CITYA.M. 29 JULY 2010
Telefonica seals deal for Vivo
▲
TELECOMS
BY HARRY BANKS
TELEFONICA has won its battle for a
bigger share of the burgeoning
Brazilian telecoms market after rais-
ing its offer for Portugal Telecom’s
(PT) stake in mobile operator Vivo to
€7.5bn (£6.2bn).
The long-sought-after takeover, a
coup for Telefonica chairman Cesar
Alierta, makes the group the biggest
in Brazil whether measured by its
69.2m customers or its 2009 revenues
of €11.8bn.
Investors said the Vivo deal offered
clear growth prospects and ended the
Conoco says
it will sell off
Lukoil stake
▲
ENERGY
BY EMMA SADOWSKI
CONOCOPHILLIPS, the third-largest
US oil company, yesterday said it will
sell its entire stake in Russian oil
major Lukoil in a bid to boost share-
holder returns as it reported better-
than-expected quarterly profit.
The Houston company, which has a
two-year plan to shrink debt by selling
$10bn (£6.4bn) in assets, said it will
sell 40 per cent of its 20 per cent stake
in Lukoil back to the company for
$3.44bn. Conoco will sell the rest of its
stake in the open market by the end of
2011, with proceeds going to share
repurchases, the company said.
“This is a positive because there was
some question about them keeping
half of their stake,” Brian Youngberg,
oil analyst with Edward Jones, said.
“While it has been a good investment
for the company, it hasn’t been a great
investment and this move reduces the
company’s risk profile.”
Previously, Conoco said it would sell
half of its Lukoil shares.
“Given the expected business envi-
ronment and our stated strategy to
enhance returns and increase distri-
butions, we have made the decision to
sell our entire stake in Lukoil,” Jim
Boeing remains optimistic for 2010
despite posting a sharp fall in profits
▲
AVIATION
BY EMMA SADOWSKI
AIRCRAFT manufacturer Boeing saw
a sharp fall in profits during the first
six months of the year after plane
deliveries were hit by problems, and
government spending cuts hit its
defense business.
The US-based group saw profits fall
from 2009’s $1.6bn (£1bn) to $1.3bn,
marking a 19 per cent drop for the
period, with the sharpest fall in the
second quarter when Boeing’s profits
uncertainty that has dogged
Telefonica shares since the last chap-
ter of the takeover battle began two
months ago.
The Vivo deal has the all-important
blessing of Portugal’s government,
which rejected Telefonica’s earlier
bid, and will allow the Spanish tele-
com group to offset the impact of
slowing revenues from its largely
mature European businesses by
boosting its presence in the country
of 190m.
PT also announced that it has
made an agreement with Brazilian
phone giant Oi that ensures its con-
tinued presence in Brazil and soothes
Mulva, Conoco’s chief executive, said.
Lukoil will use its own funds and an
unsecured loan to repurchase the
shares from Conoco, the company
said.
Conoco’s earnings were boosted by
higher crude oil profit and its refining
business. Margins to process fuels like
diesel improved globally, the oil com-
pany said. Conoco posted a second-
quarter net profit of $4.2bn, or $2.77
per share, compared with $859m, or
57 cents per share a year earlier.
Excluding items, it earned $2.5bn,
or $1.67 per share. Analysts on average
had expected a profit of $1.56 per
share. The company’s refining unit
had a profit of $736m in the second
quarter, up sharply from $20m in the
year-ago period.
ANALYSIS l ConocoPhillips
60 $
54.44
58
56
54
52
50
48
3 May 21 May 11 Jun 1 Jul
dropped by more than a fifth to
$787m.
Boeing delivered nine per cent
fewer aircraft during the six-month
period as a result of “challenges” with
its seat suppliers and lower deliveries
of transatlantic planes.
Half-year revenue for its commer-
cial airplanes business was $14.9bn,
down 12 per cent from 2009. The
group’s defence, space and security
division saw sales for the same period
fall five per cent to $15.5bn.
“Continued strong results from our
fears it could be relegated to a mainly
Portuguese carrier.
Oi said it had signed an agreement
with PT for an “eventual” alliance
that involves PT taking a 22.4 per cent
stake in its operating unit Telemar
Norte Leste and also buying shares in
the holding company that controls Oi
for £3bn.
Telefonica chairman
Cesar Alierta will see
the acquisition of Vivo
as a personal triumph
after a long battle.
WALT DISNEY BUYS PLAYDOM
28 Jul
WALT Disney yesterday said it will acquire social gaming firm Playdom for $563.2m
(£361m), as the young but fast-growing market for internet games on Facebook and
other websites has exploded. The deal is set to provide stiff competition for other social
22 Jul gaming rivals such as Zynga.
major businesses drove another solid
quarter of operational performance
for the company,” said Boeing chair-
man, president and chief executive
officer Jim McNerney.
Boeing signed a bumper number of
contracts at last week’s Farnborough
Air Show, including a mammoth
$9.1bn deal with Emirates to deliver
30 of its 777 planes.
Meanwhile, Boeing hopes that the
first delivery of its eco-friendly 787
Dreamliner will take place before the
end of the year.
NEWS | IN BRIEF
Infineon raises full-year outlook
German chipmaker Infineon raised its
full-year outlook for the second time in
three months yesterday after crashing
past profit forecasts. Infineon, whose
chips can be found in mobile handsets
including Nokia and Apple, now expects
revenue for the year to rise by at least 45
per cent, with an operating margin in the
low teens.
Mecom sees profits surge
European newspaper group Mecom post- web content management software to
ed a 48 per cent leap in first-half operat- its portfolio. Day shareholders will
ing profit yesterday as it continued to
drive costs out of the business as part of per cent premium to Day’s Tuesday close
an aggressive move from traditional print of 104 Swiss francs. The deal, valued at
to online local content. Mecom said
advertising revenue fell three per cent
but online newspaper advertising grew
Picture: GETTY
Derwent London snaps up
Central Cross for £146m
▲
PROPERTY
LANDLORD and developer Derwent
London said yesterday that it is step-
ping into the market for the first time
in three years with the £146m pur-
chase of a building in one of London’s
busiest shopping streets.
The deal indicates that banks slow-
ly are beginning to sell real-estate
assets that are weighing on their
books.
Derwent is buying the 251,000-
square-feet retail and office property
News 9
47 per cent, with 5.7 per cent of group
sales now generated online. Circulation
revenue rose two per cent. EBITDA rose
to £70.1m in the six months to the end of
June despite a two per cent fall in rev-
enue to £708m.
Adobe to buy Day Software
Adobe Systems yesterday agreed to buy
Switzerland-based Day Software Holding
for $240m (£153.8m), to strengthen its
enterprise software segment and add
receive 139 Swiss francs per share, a 34
255m Swiss francs will have no material
impact on Adobe’s 2010 earnings but
will add to its 2011 earnings.
BAA halves
losses, but
traffic falls
▲
AVIATION
AIRPORT operator BAA has narrowed
its losses despite passenger numbers
taking a hit from British Airways’
(BA’s) cabin crew strikes and the
Icelandic volcano.
The group, owned by Spanish
infrastructure firm Ferrovial, halved
its pre-tax losses during the first half
of the year from £545.7m in 2009 to
£279.7m, helped by lower one-off
charges.
BAA, which owns Heathrow and
Stansted airports, saw revenue rise by
2.2 per cent to £957.6m after 38.7m
passengers traveled through its air-
ports during the period.
But the group reported a 4.5 per
cent fall in passenger numbers after
taking a hit from 22 days of industrial
action launched by British Airways
and six days of flight disruptions
caused by the ash cloud. BAA said this
meant 2.2m fewer passengers trav-
eled through it airports.
“Airports and airlines are facing
continuing economic challenges and
our focus remains on raising stan-
dards, maximising efficiency and
continuously improving the service
we provide to passengers and air-
lines,” said BAA chief executive offi-
cer, Colin Matthews. The group was
also hit by news that the new coali-
tion government would not support
development plans to open a third
runway at Heathrow. BAA said this
would not affect its growth plans.
Central Cross at 18-30 Tottenham
Court Road and 1-2 Stephen Street,
which is situated on a 2.1-acre site.
The building fronts onto Tottenham
Court Road, which is known for its
electrical stores and furniture shops.
The previous owner of Central
Cross was a real-estate fund managed
by property investment and develop-
ment company Glebe Asset
Management.
The building was acquired for
£223.8m in April 2007 with plans for
redevelopment.
 10 News CITYA.M. 29 JULY 2010

BG Group earnings
Sam Laidlaw, chief
executive of
Centrica, said the
firm added
223,000 new cus-

hurt by writedown
tomers in February
alone

quarters of which will be refunded by

▲
ENERGY
BY MARION DAKERS
GAS producer BG Group reported a 19
per cent rise in underlying profit last
quarter, mostly due to higher world-
wide gas and oil prices.
However, its second-quarter net
profit fell 21 per cent to $602m
(£385m) after heavy losses on asset
disposals and commodities contracts.
BG wrote off $255m invested in a
well in the North Sea, around three-
the Norwegian authorities, chief
executive Frank Chapman said.
Gas production, which makes up
two-thirds of BG’s output, dropped
two per cent in the quarter, to 57.3m
barrels of oil equivalent or 630,000
barrels per day.
Some of the drop was due to
planned maintenance, and the firm
expects slight annual growth.
UK gas prices fell 17 per cent but
rose elsewhere by 35 per cent.

Cold weather
boosts profits
for Centrica
Venture Production and British
▲

ENERGY
BY MARION DAKERS
BRITISH Gas owner Centrica beat fore-
casts yesterday by posting a first-half
operating profit of £1.56bn.
Profit rose 65 per cent in the last
six months, bolstered by the UK’s
coldest winter in 30 years upping
energy consumption.
Revenues for the period were com-
parable to the same time last year, at
£11.7bn, though the firm added
around 223,000 new customers after
cutting prices in February.
The severe weather also created
extra work for British Gas engineers,
who fixed up to 35,000 boilers a day
during the winter.
Nick Luff, finance director, said:
“The key driver of the UK business
was again the downstream residen-
tial sector, but all divisions reported
better results than this time last year.
But UK gas prices were unusually low
last winter, despite increased
demand.”
The profit included first-time con-
tributions from Centrica’s acquisi-
tions of North Sea gas producer
Energy, and the newly commissioned
gas-fired Langage power station –
part of its strategy to expand into
both wholesale energy and house-
hold services to limit the impact of
fluctuating gas prices.
Underlying profits in the group’s
fledgling US business also rose by 25
per cent.
“The strong results for the group
highlight that, as an integrated utili-
ty, Centrica is well positioned to cope
with a volatile wholesale energy price
environment,” said Killick & Co ana-
lyst Jonathan Jackson.
ANALYSIS l Centrica
320 p 304.00
28 Jul
300
280
260
10 May 28 May 18 Jun 8 Jul 28 Jul

Shareholders should remember

that this is as good as it gets
BUMPER profits at energy
providers are something of a dou-
ble-edged sword. Shareholders
might cheer, but populist denunci-
ations and cries of “excess” are sure
to follow. Centrica investors should
ignore the scrum for now, however,
and bask in the glory: this is as
good as it gets. Falling wholesale
prices coupled with a bitterly cold
winter combined to create an
uncommonly good operating envi-
ronment, helping to push operat-
ing profit up 65 per cent in the first
half. Management won’t be able to
repeat this performance, which is
likely why the share price dipped
by one per cent yesterday.
That said, Centrica deserves a
second look. From the outside, it
might seem like a boring utility
company, but underneath the
archaic British Gas moniker, a
transformation is taking place.
Increasingly, Centrica is moving
away from being a supplier and
becoming a fully-fledged produc-
tion and supply company, as sym-
bolised by its £1.3bn buyout of
North Sea oil producer Venture.
With projected earnings growth of
10 per cent per annum and a sector-
beating yield of 4.5 per cent, you
could do much worse.
BOTTOMLINE
Analysis by David Crow
 The Capitalist
PIMCO’S GROSS LOWERS THE TONE
WITH A TOUCH OF TOILET HUMOUR
FULL marks to Pimco managing direc-
tor Bill Gross, who has excelled even
his own high standards of witty repar-
tee in his latest Investment Outlook
newsletter. The most recent missive is
dedicated to none other than the
humble toilet – more specifically, the
advent of electronic “eye” sensors in
place of a manual flushing system.
“It’s after the dirty deed is com-
plete that the real intrigue begins,”
writes Gross, who clearly isn’t too
concerned about the delicate sensibil-
ities of his more prudish readers.
“Does it flush or doesn’t
it?...Sometimes, after the paperwork
has been filed, pants pulled up and
an attempted getaway initiated –
nothing happens. No flush. Well,
what is one to do in such circum-
stances? You can’t just leave it there,
you know. Sometimes when the toi-
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
let’s plugged and there’s no plunger
like in European bathrooms, you can
get out of there quick with con-
science intact, but only, of course,
after checking to see that there’s no
one else in the restroom who might
be able to testify against you in court
for being a non-flusher. With elec-
tronic eye toilets, however, the con-
science is never clear…”
On and on Gross rambles, for a
Bill Gross, inset, reckons we’re in “deep demographic doo-doo” Pictures: GETTY, REUTERS
page and a half, before getting to his
point – the consequences of a global
deleveraging drive in the face of slow-
ing growth in world population, and
the dangers of “cyclical policy errors
that thrust Keynesian consumption
remedies on a declining consumer
base”. His conclusion? We’re in “deep
demographic doo-doo”.
HOT OFF THE BLOCK
Off to an informal drinks party on
Tuesday evening at the Devonshire
Terrace bar near Liverpool Street,
where fund manager Henderson was
entertaining its staff and their friends
at a bash in aid of young people’s char-
Rolf Harris is a hit with fund managers
ity Fairbridge.
The showpiece of the event was a
charity auction, which raised £6,000
via the sale of a number of juicy lots,
including signed sporting memorabil-
ia, tickets to the opera, pop concerns
and sports matches, and golfing days
out. The Capitalist was somewhat
bemused by the tastes of the fund
managers present, who let a driving
experience day for six people at
Silverstone go for a mere £650, but
were willing to stump up £430 for a
signed print of a painting by grizzled
Aussie animal-lover Rolf Harris.
Institutional sales associate direc-
tor James Lucas was on hand to auc-
tion off the first items, though the
entertaining display was rather more
one of charm than of skill. Luckily for
the charity’s revenues, he soon hand-
ed over to head of corporate commu-
nications Richard Acworth, who
divvied up the remaining big ticket
items with flair.
BOOK WORM
While we’re on the subject of asset
management, let’s
turn to the hot
source of gossip in
the industry: New
Star and Jupiter founder
John Duffield, who’s now
busy with new venture Brompton
Asset Management on the other side
of town.
11
Tongues are wagging that Duffield
has recently been trying to convince
his sidekick, former Sunday Times
business editor John Jay, to pen an
autobiography, funded by the great
man himself. I call Jay, kicking back
on holiday this week with a copy of
Andrew Ross Sorkin’s Too Big To Fail,
to find out more.
“I’m not writing any book at the
moment,” comes the reply, accompa-
nied by the requisite hearty guffaw.
And yet he does make sure to add:
“That comment would not preclude
me from writing one in the future…”
Let’s wait and see, eh?
GLOBAL VISION
First we had the Brics – Brazil, Russia,
India and China – and now everyone is
burbling about the hot new tips for
emerging market economies with the
potential for runaway growth, the
Civets – Columbia, Indonesia,
Vietnam, Egypt, Turkey and South
Africa. With all these initials flying
about, the City has been getting
acronym-happy, and a reader emails
in to float a few new possibilities.
“I suggest that other contrived
investment regions could consist of
Bulgaria, Armenia, Latvia, Lithuania
and Serbia?” he begins. “Or perhaps
Armenia, Russia, Serbia and Estonia?
Or moving east, maybe Taiwan,
Indonesia, Thailand and South Korea?
Or in Africa, how about Namibia,
Uganda, Tanzania and Sierra Leone?
Armed with a map of the world, the
possibilities are almost endless.”
NECK AND NECK
Happy news for NewSmith Capital
Partners founder Paul Roy yesterday at
Goodwood. Roy, who is also chairman
of the British Horseracing Authority,
saw his horse Canford Cliffs storm to
victory in the prestigious Sussex
Stakes, winning by a neck against last
year’s victor Rip Van Winkle to claim
the £300,000 race.
SPORT: P27
BALL GAME
City table tennis fanatics should get
ready for some furiously competitive
action over the summer, after Lord
Mayor Nick Anstee launched the
Square Mile’s outdoor
ping pong league
yesterday. Tables
are located at
Paternoster
Square, the
Barbican and
Finsbury Square,
while City workers
can sign up to take part at
www.cityoflondon.gov.uk/sport/2012.
 12 News
Philippe Varin chief executive of Peugeot Citroen
BBVA beats
forecasts to
issue bonds
&+ !*
▲
BANKING
BY MARION DAKERS
SPAIN’S second largest bank, BBVA,
beat analyst forecasts yesterday with a
9.7 per cent drop in net profit for the
first half of the year, and stepped back
into the bond market for the first
time since the crisis.
Net profit fell to €1.3bn (£1.1bn),
beating forecasts of €2.45bn in a
Reuters poll but dropping 19 per cent
on the same period last year.
Total lending across the group
grew four per cent, to €348.9bn, while
income from loans also grew year-on-
year, by 1.2 per cent to €6.9bn.
Bad loans fell to 4.2 per cent of the
total loan book at the end of June
from 4.3 per cent at the end of March,
broadly in line with analyst forecasts.
BBVA emerged as one of the most sol-
vent European banks in last week’s
stress test results.
BBVA placed its first senior unse-
cured bond since the start of the sov-
ereign debt crisis yesterday, raising
more than €1bn over five years at
spreads of around 1.75 per cent.
The bank said it was confident it
could profit from the restructuring of
Spanish savings banks taking place in
the wake of the crisis. “This restruc-
turing could mean an increase in
market share of over 200-300 basis
points in the next two to three years,”
BBVA’s director for Spain and
Portugal Juan Asua said.
ANALYSIS l BBVA
€
10.52
28 Jul
10.5
10
#&
!% * +"' $ !"&  &" "%& +"'$ "%%% !%& +"'$
9.5
#&
!% &+
* )% $ %'& &" ! ! #! "! !(' $' %&!%

9 % % !#!!& (  !%%$+

8.5
Picture: REUTERS
$ ! $%
#$ & )&
uncertainty
&+!*
"
' who took over the helm in 2005, has
  
% #$ &&! % $ $"
in Barclays in 2008, and plans to list
#$ &&! !
Peugeot grim after profit
▲
AUTOMOTIVE
BY HARRY BANKS
FRENCH carmaker Peugeot Citroen
warned its second-half performance
would be hampered by a tougher eco-
nomic environment, yesterday send-
ing its shares lower even though it
swung to a first-half profit.
Shares fell sharply following the
announcement, before closing down
its shares on the New York Stock
four per cent at €23.89 (£19.90).
Europe’s second-largest carmaker
behind Volkswagen posted first-half
recurring operating income of
€1.14bn, compared with a recurring
operating loss of €826m for the same
time last year.
Peugeot expects its automotive
division to be “close to break-even” in
the second half, despite seasonality
and “more difficult market condi-
CITYA.M. 29 JULY 2010
tions” for the rest of the year in
Europe where scrapping schemes are
grinding to a halt. Chief executive
Philippe Varin, however, cautioned
Peugeot would have to cope with a
tougher economic environment in
the coming months.
“Clearly the economic context is
going to be less favourable, and will
have a negative impact in the second
half,” Varin said yesterday.
Japanese
banks face
▲
BANKING
BY HARRY BANKS
JAPAN’S third-biggest bank stuck to
its full-year forecast yesterday despite
reporting robust first-quarter earn-
ings, due to uncertainty about the
economic outlook.
Sumitomo Mitsui Financial Group
(SFMG) said net profit soared nearly
three-fold to 211.8bn yen (£1.55bn) in
the three months to the end of June.
Citigroup analyst Hironari Nozaki
had forecast the bank would earn a
profit of 100bn yen.
SMFG’s strong quarterly results are
likely to be mirrored by its bigger
rivals, top-ranked Mitsubishi UFJ
Financial Group and second-placed
Mizuho Financial Group, which will
announce earnings tomorrow.
“It was a very strong result but
there is a question of sustainability,
since the bank achieved topline
growth by offsetting a decline in net
interest income with highly volatile
market income,” said Nana Otsuki, an
analyst at UBS Securities Japan. Net
interest income is what a bank earns
from lending activities.
Japanese banks are seeing a decline
in credit costs as the economy stages a
moderate pickup, but their core lend-
ing to households and businesses
remain sluggish.
SMFG president Teisuke Kitayama,
been steering the bank in its efforts to
build revenue generators beyond its
lending business in a mature
Japanese market.
SMFG acquired a two per cent stake
Exchange later this year. It also agreed
in June to buy a 4.5 per cent stake in
% ! $%'& ! "%%% && * +"'$ !& #"%&
Indian lender Kotak Mahindra Bank.
8
Shares in the bank have rise 1.3 per
7.5 cent so far this year, outperforming
the benchmark Nikkei average of a 7.5
10 May 31 May 21 Jun 12 Jul per cent loss.

CITY VIEWS: SHOULD THE CITY TAKE A LESSON FROM THE CONTINENT AND CLOSE DURING AUGUST? Interviews by Marion Dakers

BEREND VAN LUIK | DAIWA CAPITAL
“It’s not possible in this country. Here, a
lot of people work through their holidays
anyway. In the Netherlands, each region
has a different holiday period, which is
optional but it helps to plan projects
if you know roughly when every-
one will be away.”
MICK ROBERTS | MITEL NETWORKS RAEES MIYAN | UNICORN IT SOLUTIONS
“It would turn into companies telling “It’s definitely a good idea, but it would
people when they can and can’t take be hard to persuade everyone to take
their holidays. Travel companies would part. People already work from home or
put their prices through the roof. I tend on the go, so it’s impossible for them to
to go on holiday in May or switch off for a whole month. I won’t
September, and wouldn’t want be taking any holidays at all this
to lose that flexibility.” summer.”
CITYA.M. 29 JULY 2010 Economic News 13

House prices inched higher

in June, says Land Registry
same levels that they were in the Simon Rubinsohn, RICS chief econ-

▲
PROPERTY
BY HARRY BANKS
HOUSE prices in England and Wales
rose 0.1 per cent on the month and
8.4 per cent on the year in June, fig-
ures from the Land Registry showed
yesterday.
Bank governor Mervyn King said inflation would stay high Picture: REUTERS The government agency said the
average price of a home was now
summer of 2006.
London continued to see rising
house prices in June, with the aver-
age house price rising by 0.5 per cent
to £338,027. This is double the
national average.
Transaction volumes increased
slightly in the first quarter compared
to the same period in 2009. They
omist, said: “House prices on this
measure are just 9.5 per cent away
from their previous high, recorded in
November 2007.”
“The more worrying element of
the Land Registry data is the continu-
ing weakness in transaction activity.
Subsequent figures on mortgage
approvals suggest that this number

King remains
£166,072. averaged 44,114 transactions per is unlikely to pick-up anytime soon,”
House prices are now around the month instead of 32,041. Rubinsohn added.

dovish about
UK outlook
curb expected high inflation. “Given
▲

UK ECONOMY
BY JESSICA MEAD
BANK OF ENGLAND governor Mervyn
King yesterday staunchly defended
the continued need for ultra-loose
monetary policy but warned that
high inflation could continue to
erode households’ earnings power
over the next year or so.
Speaking in front of the Treasury
Select Committee, King denied that
the strong second quarter GDP
growth reading meant that the
Monetary Policy Committee (MPC)
could put its foot on the brake. He
even suggested that policy would be
loosened further if required.
“The debate is about the appropri-
ate degree of stimulus, not about
applying the brakes. I am arguing
that we have room to use monetary
policy in either direction. I don’t
want to prejudge where it will need
to go,” he said.
“The wider economic problems
around the world underline the fact
that we can’t be confident that the
recovery in demand, output and
employment here in the UK will be
sustained,” he said.
Consequently, King indicated that
the MPC was unlikely to raise rates to
the changes to VAT announced in the
Budget, it’s likely that inflation will
remain above target for much of next
year,” King warned.
“There will come a point when we
will certainly need to ease off the
accelerator and return the bank rate
to more normal levels. But I fear there
is some considerable distance to trav-
el before we can begin to use the
word ‘normal,’” he added.
However, there were further clues
yesterday as to how the central bank
would conduct a tightening of mone-
tary policy. King said that any plan
would be coordinated with the Debt
Management Office and added: “We
shouldn’t begin new sales until we
are in a position where we are fairly
confident that we want to embark on
this degree of tightening over, say, the
following six months.”
Paul Fisher, executive director for
markets at the Bank and MPC mem-
ber, added: “We would expect interest
rates to be changed first and then we
would announce a programme of
sales of the assets to take place some
time shortly after that but over a peri-
od of time to give the markets some
certainty of the pace at which we
would sell the assets.”

ECB gets tough Durable goods

on bank lending orders drop
▲

EUROPEAN ECONOMY US ECONOMY

THE EUROPEAN Central Bank (ECB)
yesterday unveiled a tougher stance
on lending, subjecting banks to more
stringent penalties for borrowing
from the ECB using more risky assets
as collateral.
Banks in Greece, Portugal, Spain
and other heavily indebted parts of
the Eurozone have been locked out of
normal bank-to-bank lending markets
during the most turbulent periods of
the financial and debt crises, leaving
them almost entirely dependent on
the ECB for funding. The ECB’s new
sliding scale of “haircuts” – the
amount it takes off collateralized
asset values to protect itself – will
come into force in 2011.
NEW orders for US manufactured
goods such as cars and planes fell
unexpectedly for a second straight
month in June, in a sign that the eco-
nomic recovery cooled in the second
quarter.
However, the Commerce
Department report on durable goods
showed that cash-rich businesses con-
tinued to invest in equipment. This
implied that underlying demand
remained intact with firms exhibit-
ing confidence in the moderate eco-
nomic recovery.
Durable goods orders dropped one
per cent after falling 0.8 per cent in
May, surprising markets that had
expected a one per cent increase.
 14 Consumer News CITYA.M. 29 JULY 2010

William Hill names new chair Carphone Warehouse in

LEISURE in 1996 and led the successful development into a leading multi-
boost from smartphones
▲

BY HARRY BANKS demerger of Imperial from Hanson national business. Since 2003, Davis
and subsequent listings on the has also been a non-executive director
WILLIAM Hill has appointed Gareth London and New York stock of Wolseley. net access like Apple’s iPhone.

▲
CONSUMER
Davis as its new chairman. exchanges. He played a key role in the Charles Scott, who announced in Chief executive of Europe’s biggest
Davis, who recently retired as chief development and execution of January he was standing down, will CARPHONE Warehouse said demand independent mobile phone retailer,
executive of Imperial Tobacco Group Imperial Tobacco’s strategy and its leave when Davis takes over. Scott has for smartphones would help it cope Roger Taylor said: “It feels like we can
after 14 years in the role, will take up been with the betting group as a in a muted consumer environment, continue for the rest of this year and
his new job from 1 September. Gareth Davis, formerly director since 1999 and chairman as it beat quarterly revenue forecasts into the first half of next year.”
He joined Imperial Tobacco in 1972 since 2004. Chief executive Ralph and hailed a strong debut for its new The company said it had also been
as a management trainee and under- chief executive of Topping said: “We are delighted that megastores with US partner Best Buy. boosted by smartphones equipped
took various roles in the business, Imperial Tobacco, will Gareth has agreed to join the board. The company, which also owns a with Google’s Android technology
including managing director of inter- take over the reins He has strong, relevant experience in 47.5 per cent stake in Virgin Mobile and Blackberry advances.
national operations from 1988. from 1 September terms of managing a complex, regu- France, is benefiting from surging The battle for the smartphone mar-
He was appointed chief executive lated business.” demand for smartphones with inter- ket is becoming increasingly fierce.

ANALYSIS l BAT's performance for the first six months of the year
DSGi tips iPad
BAT increases as the Xmas
its dividend in gift to fly off the
shelves fastest
a flying start

▲
CONSUMER
APPLE’S iPad has been tipped to be
this Christmas’s best-selling gadget,
according to Currys and PC World
owner DSGi.
CONSUMER for the half were down three per cent The company, which owns 670
▲

BY JOHN DUNNE after a four per cent slump in the first stores in the UK, said Apple’s tablet
quarter and a 1.9 per cent fall in the computer will top the list of desirable
BRITISH American Tobacco (BAT) yes- second. gifts during the festive season.
terday hiked its dividend by nearly a BAT hopes sales will be down less DSGi predicts that hi-tech gadgets
fifth after a better-than-expected start than two per cent in the second half. will be the must have items.
to the year. The firm has been hit by sharp Jeremy Fennell at DSGi said: “There
The world’s second-largest tobacco increases in tobacco duties in coun- is no doubt the iPad is going to be the
group declared an interim payment tries such as Romania, Turkey, Japan number one Christmas gift this year
of 33.2p a share, up 19 per cent on the and Pakistan which has encouraged with even more accessories launch-
27.9p it paid at the same stage last illicit trade. ing it’s only going to make a must-
year. “The company is cautiously opti- have technology even more
Revenues in the first six months of mistic it is past the worst of the reces- attractive.”
the year jumped eight per cent to sion,” said analyst Adam Spielman at DSGi also predicted that
£7.3bn. Profits were up by the same Citi. Microsoft’s Kinect for Xbox 360 – a
amount to £2.27bn. controller-free, motion-sensing gam-
The company, whose cigarette
brands include Dunhill, Lucky Strike
ANALYSIS l British American Tobacco
2,300 p
2,242.50 8% 33.2p ing device – would fly off the shelves.
Other items on the list include the
28 Jul Jump in
£7.3bn £2.27bn Dividend
and Pall Mall, said it was able to raise Gran Turismo 4 video game and E-
some prices and had seen an increase 2,200 revenue to be readers.
in its market share.
Chairman Richard Burrows said: in first Total Profit paid from
DSGi announced earlier this week
that it had sealed a deal with private-
“While the comparisons with 2009
2,100
six months Revenue end of ly-owned mobile phone group Phones
will become tougher in the second of the September 4u to launch a series of mobile phone
2,000
half, shareholders should see another
year of good growth in both earnings
year outlets in the Currys chain.
The decision followed trials in five
and dividends.” 1,900 megastores over the past year, which
Stripping out acquisitions, volumes 10 May 28 May 18 Jun 8 Jul 28 Jul BAT’s interim results mark a good start to the year Picture: NEWSCAST proved successful.

Aldi’s co-founder
That’s broadband, line rental with evening
& weekend calls in one lower–cost bill Theo Albrecht dies
RETAIL
▲

£1.5bn in Britain and has more than

BY HARRY BANKS
THEO Albrecht – one of the found-
ing brothers of the Aldi grocery
and £17 after that for ø customers chain – has died at the age of 88.
Albrecht had a personal fortune
of more than £10bn.
He died in his home city of Essen,
on Saturday. Together with his
brother Karl, two years his senior, he
Call 0800 954 1396 built up Europe’s biggest budget
Visit o2.co.uk/broadband grocery chain Aldi, and in doing so
was a regular on the Forbes richest
or any ø shop We’re better, connected list.
“The best quality at the lowest
You need O2 Home Broadband to get O2 Home Phone. It’s subject to availability, 12 month contract, direct debit and a compatible phone line. Excludes cable. Price quoted is for O2 mobile customers. price” was the business motto.
Includes calls to standard UK landlines (starting 01, 02 or 03), up to 60 minutes long from 6pm-6am weekdays or 6pm Friday to 6am Monday. Other calls have a 9p setup fee. Cheaper than our broadband Annually, the group turns over
with a BT line. Fair usage policy, price list and full details at o2.co.uk/broadband 3 months free offer ends 17.08.10.
around £22bn. Aldi has invested
300 outlets,
The reclusive brothers spent their
time playing golf, and other hobbies
including collecting typewriters and
growing orchids. Theo was once
asked to inspect the plans for a new
store in the Netherlands.
Having studied them closely, he
offered the advice: “This layout is
very good. But there’s just one
thing – this paper you're using is too
thick. Use thinner paper to save
money.”
Rather than waste money on
fountain pens, Theo would also take
notes at meetings with senior staff
using pencils which also could not
be too expensive.
 La lin
De
st e:
ad
ch Thu
ALISON CARNWATH

an rs
ce da
to y 2
IS READY. ARE YOU?

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ter uly
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is ready to judge entries to the inaugural CITY A.M. Awards and urges you to enter
these new financial business awards from the UK’s leading, free, business daily.
Entry to the Awards is free and online. There are 15 company awards recognising
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For full details and helpful contact points please visit
the Awards website: www.CityAMAwards.com
For information on becoming a sponsor of the City A.M. Awards
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 16 News
LSE’s Indian adventure gives hope for future
fears weighed heavy, but interest in
market developments and competi-
tion remains high.
The London Stock Exchange (LSE)
has survived assault after assault in
recent years. Predators like OMX and
Deutsche Boerse have eyed a takeover
of the City’s oldest and most impor-
CITY COMMENT tant institution. Since then, upstart
new entrants such as Turquoise and
BEN GRIFFITHS Chi-X have been battling to steal the
LSE’s lunch by under-cutting the cost
S
TOCK exchanges continue to be of trading. Turquoise is now part of
a hot topic for debate both in the the LSE, of course, but the threat of
City and the wider global mar- competition remains real. Yet the
kets. Global equity issuance may exchange continues to survive despite
be at its lowest point since 2005, with current market conditions.
just $309bn (£198.2bn) raised in the Now it seems the LSE could face
first half of 2010 as sovereign debt even stiffer competition if Vince Cable
Virgin Media
eyes buyback
of its shares
▲
TELECOMS
“Going forward, we’ll continue to
BY STEVE DINNEEN differentiate our propositions by proac-
VIRGIN Media will buy-back up to tively exploiting the advantages of our
£375m of its shares as confidence in network and our mobile capability.
its cable business rockets. “Confidence in our long term abili-
The firm posted better-than-expect- ty to deliver strong free cash flow,
ed second-quarter results, buoyed by along with the recent completion of
signing up an extra 9,100 customers our refinancing, enables us to
during the notoriously tough trading announce a capital return pro-
period. This was compared with a loss gramme that complements our exist-
of almost 28,000 customers a year ago ing debt reduction schedule.”
and a company consensus for a net The firm also reported its cus-
loss of 2,000 customers. tomers are spending more, with aver-
Revenue jumped 7.1 per cent to age revenue per user up 4.9 per cent
£964m – the strongest revenue to £45.88. The number of users sub-
growth since the company was scribing to its “triple play” package of
formed from a merger more than broadband, TV and phoneline
four years ago. Operating cash flow increased from 59 to 62 per cent.
was up 12.9 per cent to £370m. Churn – the number of customers
The firm will now snap up an ini- leaving the company – was held at 1.3
tial £375m of its shares over the next per cent.
12 months as part of a £700m capital
return programme that will also pay Chief executive Neil
down debt.
Chief executive Neil Berkett said:
Berkett says the firm
“This performance was driven by our will continue its capital
ability to offer households and busi- return programme
nesses an increasingly differentiated after this year
range of digital services.
CITY MOVES | WHO’S SWITCHING JOBS
Collins Stewart
The financial advisory group has appointed a
new equity research, sales and corporate
broking team, focused on the mining sector and
headed by John McGloin (pictured).
McGloin has worked as an analyst for the
past eight years at Beeson Gregory and
Evolution. He is joined by mining analysts Tim
Dudley and Andrei Kroupnik; corporate broker
John Prior, who moves over from Arbuthnot
Securities; and salesman Matt Hasson.
Commerzbank (ECM) for the UK.
The bank has hired Daniel Oakes as its Oakes joins from STJ Advisors,
new head of equity capital markets where he was a partner with responsi-
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
gets his way. The coalition govern-
ment’s business secretary has pro-
posed the remarkable “back to the
future” notion of resurrecting the old
regional stock exchanges as a way of
helping small businesses to list and
raise new capital. The argument goes
that it is just too expensive for many
to float, even on the supposedly
cheaper Aim market. Big regional
cities such as Birmingham, Edinburgh
and Manchester have hosted thriving
stock markets in the distant past.
But is it really necessary or even eco-
nomically viable for them to return?
Particularly when the LSE has its eyes
turned increasingly overseas for
future business development. A deal
to work with its Indian equivalent was
BEST OF THE BROKERS
ANALYSIS l Informa
410 p
393.10
28 Jul
400
390
380
370
360
350
340
330
19 May 9 Jun 29 Jun 19 Jul
INFORMA
Royal Bank of Scotland (RBS) believes that
Informa's first-half results demonstrated a
turning of the cycle –both operationally
and from a capital allocation perspective
because the firm upped its dividend by 25
per cent. RBS reiterates a “buy” recom-
mendation for Informa and raises its target
price to £4.70.
Russia plans $29bn state asset sell-off
▲
WORLD ECONOMY
RUSSIA plans to sell $29bn worth of
assets on the open market, a senior
government official said yesterday,
allaying investors fears about the
transparency of the biggest privatisa-
tion since the 1990s.
The planned asset sale is designed
to fill budget holes that Russia is to
battle for the next few years.
“We will sell significant stakes in
Edited by Victoria Bates
bility for the ECM advisory franchise.
He has over 14 years of experience
across equity and equity-linked prod-
ucts, gleaned at firms such as Nomura,
WestLB and HSBC.
JO Hambro
The investment manager has taken on
Edward Novis to co-manage its Pepin
and Waverton European funds, along-
side Oliver Kelton.
Novis started his 20-year career at
Cazenove, before joining Morgan
Stanley in New York. He joins JO
Hambro from Marble Bar Asset
Management, where he has been a pan-
European portfolio manager since 2007.
signed as part of David Cameron’s
visit to the country this week, which
included LSE boss Xavier Rolet.
Closer to home the amount of
money raised on the LSE has been
impressive during a turbulent July.
Online grocery retailer Ocado raised
£215m on admission, making it the
fifth company to join the main market
this month. It took the total money
raised by new UK-based companies on
the market to over £1bn in July. Vallar,
the investment vehicle which floated
on 14 July, raised £687m at admission.
And GCP Infrastructure Investments
raised £40m on the 22 July and is the
first infrastructure fund of its type to
float in the UK. Better Capital raised
£67.6m when it joined the main LSE
ANALYSIS l Whitbread
1,600 p
1,438.00
1,550
28 Jul
1,500
1,450
1,400
1,350
1,300
1,250
1,200
19 May 9 Jun 29 Jun 19 Jul
WHITBREAD
JP Morgan Cazenove retains a “neutral”
recommendation on Whitbread and said
that June’s hotel market data demonstrates
the ongoing disparity between strength of
demand in London. Premier Inn has already
reported strong trading, but JP Morgan
prefers the exposure of Intercontinental
Hotels Group at this stage of the cycle.
To appear in Best of the Brokers email your research to notes@cityam.com
state companies on the market. We
plan to keep controlling stakes,”
finance minister Alexei Kudrin said
ahead of a government meeting
today, which will debate key budget
parameters and privatisation plans.
“(Assets) will be valued publicly, in
line with market prices and tenders
will be open,” he said. “We are fully
ruling out a situation when some-
body sells something to someone at
an artificially low price.”
in association with
JLT Benefit Solutions
Paternoster founder and former
Prudential chief executive Mark Wood
has joined the employee benefits con-
sultancy as non-executive chairman,
effective from 1 August.
Wood founded Paternoster in 2006,
after spending four years at the helm
of Prudential. Prior to that, he also
headed up Axa’s UK business as chief
executive, and has held senior posi-
tions at Commercial Union and
Barclays.
RSM Tenon
The accountancy firm has appointed
three new recovery directors to its
CITYA.M. 29 JULY 2010
market from Aim on the 8 July, and
Entertainment One also made the
move from Aim to the Main Market
on 15 July.
So far this year, there have been a
total of 45 IPOs on the LSE’s markets,
raising more than £5.5bn. Notable
international floats included Essar
Energy and African Barrick Gold.
All of this adds weight to the argu-
ment that the LSE remains the
world’s most international capital
market. It has around 600 overseas
companies from almost 70 countries
on its markets. More foreign firms
could yet come if chief executive
Rolet’s visit to India with the Prime
Minister is successful.
ben.griffiths@cityam.com
ANALYSIS l Daily Mail and General Trust
540 p
520
485.80
500 28 Jul
480
460
440
420
19 May 9 Jun 29 Jun 19 Jul
DAILY MAIL & GENERAL TRUST
Citigroup sees Daily Mail & General Trust’s
results as mildly positive and gives them a
“buy” rating. Citi said that while it may not
drive significant changes to consensus
earnings, it believes it will give confidence
for full-year 2010 forecasts. Citi forecasts
19 per cent earnings per share growth in
2010 and 2011.
He said the government wanted to
earn $10bn next year from asset sales
but did not name the companies that
would be auctioned off.
If approved, the sale would become
Russia’s most ambitious since
President Boris Yeltsin’s era when oil
and metal companies were sold-off.
Investors have said they are keen to
see how transparent the process will
be and whether foreigners will be
allowed to bid.
London office.
Steve Billot joins to head up the
firm’s independent business review
services, having previously held roles
at BDO, the DTI Insolvency Service
and Levy Gee. Derrick Woolf, a found-
ing member of the Institute for
Turnaround, will be responsible for
developing RSM Tenon’s lender servic-
es, while Richard Brewer has been
promoted to head of compliance after
joining the firm in July last year.
Lester Aldridge
The law firm has appointed Tony
Sampson as its new head of corporate
recovery and insolvency.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment
17

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .290.00 –2.80 314.80 246.90 COLT Group . . . . . . . . . . . . . . . .132.20 –1.80 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .53.35 –0.85 71.75 36.50 Schroders . . . . . . . . . . . . . . . . .1277.00 +2.00 1450.00 899.00
3i Infrastructure . . . . . . . . . . . . . 111.20 –0.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .542.00* –16.00 574.50 308.10 Jardine Lloyd Thompson. . . . . . .589.50 –1.00 604.50 420.70 Schroders N/V. . . . . . . . . . . . . .1061.00 +6.00 1185.00 779.00
A.B. Foods . . . . . . . . . . . . . . . .1044.00 –47.00 1096.00 777.00 Cookson . . . . . . . . . . . . . . . . . . .456.00 –4.20 616.00 292.50 Johnson Matthey . . . . . . . . . . .1707.00* –16.00 1814.00 1302.00 Scot. & Sthrn Energy. . . . . . . . . 1115.00 –63.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .139.50 +1.50 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1267.00 –5.00 1316.00 536.00 Kazakhmys . . . . . . . . . . . . . . . . 1197.00 –19.00 1634.00 768.00 Scottish Mortgage. . . . . . . . . . . .602.00 –8.00 623.50 420.75
Admiral. . . . . . . . . . . . . . . . . . .1473.00 –26.00 1519.00 930.50 CSR . . . . . . . . . . . . . . . . . . . . . .355.50 –59.20 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .129.30 –1.10 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .283.60 –3.50 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . . 117.00 –1.20 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .485.80 –0.70 539.00 290.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .221.00 –0.50 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . . .92.60 –0.35 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1716.00 +9.00 1728.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .137.00 –1.30 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .553.50 –5.00 656.50 394.30
African Barr Gold . . . . . . . . . . . .543.00 –4.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .376.50 –9.00 442.30 323.25 Lancashire Hldgs . . . . . . . . . . . .537.50 –4.00 545.00 416.70 Severn Trent . . . . . . . . . . . . . . .1285.00* — 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1527.00 –16.00 1639.00 524.50 De La Rue . . . . . . . . . . . . . . . . . .730.50* –28.50 1021.00 729.50 Land Securities . . . . . . . . . . . . . .620.50* –5.50 743.50 487.00 Shaftesbury . . . . . . . . . . . . . . . .401.90 –4.10 426.50 307.75
Alliance Trust . . . . . . . . . . . . . . .321.30* –0.90 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .64.90 –0.50 91.95 51.95 Legal & General . . . . . . . . . . . . . .91.95 –0.15 94.70 57.00 Shire. . . . . . . . . . . . . . . . . . . . .1469.00 +2.00 1526.00 850.00
AMEC . . . . . . . . . . . . . . . . . . . . .879.50 –18.50 909.50 684.50 Derwent London . . . . . . . . . . . .1358.00 +3.00 1490.00 911.00 Lloyds Banking Gp . . . . . . . . . . . .69.35 –2.45 75.58 45.30 SIG . . . . . . . . . . . . . . . . . . . . . . .103.00 –2.10 146.60 96.90
Amlin . . . . . . . . . . . . . . . . . . . . .421.00 –2.70 432.20 325.00 Dexion Absolute . . . . . . . . . . . . .138.80 –0.60 148.00 117.75 Logica . . . . . . . . . . . . . . . . . . . .102.00 –0.40 149.10 84.25 Smith & Nephew . . . . . . . . . . . . .547.50 –3.50 700.50 458.60
Anglo American . . . . . . . . . . . .2539.50 +5.00 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1112.00 –25.00 1176.00 893.00 London Stk Exchange . . . . . . . . .661.00* +1.50 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .142.00 –2.30 150.20 70.00
Antofagasta . . . . . . . . . . . . . . . .994.00 –11.00 1100.00 676.00 Dimension Data . . . . . . . . . . . . .123.60 –0.40 125.50 55.00 Lonmin . . . . . . . . . . . . . . . . . . .1559.00 +10.00 2198.00 1214.00 Smiths . . . . . . . . . . . . . . . . . . . 1121.00 –14.00 1186.00 715.00
Aquarius Platinum . . . . . . . . . . .284.50 +6.50 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .417.80* –0.40 431.30 228.40 Man . . . . . . . . . . . . . . . . . . . . . .224.50 –1.00 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .428.00 +2.90 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .335.50 +1.60 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .383.60 –2.00 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .352.40 +2.80 412.70 321.90 Spectris . . . . . . . . . . . . . . . . . . .890.50 +2.00 949.00 545.00
Arriva . . . . . . . . . . . . . . . . . . . . .770.50 +0.50 782.50 413.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.61 –0.59 39.75 23.00 Meggitt . . . . . . . . . . . . . . . . . . . .307.90 –5.00 331.00 168.50 Spirax-Sarco Eng . . . . . . . . . . .1580.00 +2.00 1617.00 893.50
Ashmore . . . . . . . . . . . . . . . . . . .290.50 +5.70 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .385.30 –6.90 438.40 250.70 Melrose . . . . . . . . . . . . . . . . . . .231.30 –4.70 251.50 110.50
Astrazeneca . . . . . . . . . . . . . . .3202.50 +13.50 3277.50 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .403.60 –30.90 499.90 273.25 Mercantile IT . . . . . . . . . . . . . . . .958.50* — 1002.00 772.00 Spirent Comms . . . . . . . . . . . . . .130.00 — 135.90 65.25
Atkins(Ws) . . . . . . . . . . . . . . . . .729.50 –22.00 760.50 532.50 Edinburgh Inv Tst . . . . . . . . . . . .397.20* –1.90 412.40 313.50 Michael Page Intl. . . . . . . . . . . . .393.90 –3.90 461.50 272.50 Sports Direct Intl . . . . . . . . . . . . . 114.00 +0.90 134.00 81.80
Autonomy Corp . . . . . . . . . . . .1650.00 –28.00 2012.00 1161.00 Electrocomponents . . . . . . . . . . .224.90 –1.50 245.00 142.90 Micro Focus . . . . . . . . . . . . . . . .425.00 +0.50 550.00 300.90 SSL Intl . . . . . . . . . . . . . . . . . . . 1180.00 –1.00 1190.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1356.00* +3.00 1368.00 755.00 EnQuest . . . . . . . . . . . . . . . . . . . 119.00 +9.00 119.00 87.35 Millen & Copthorne . . . . . . . . . . .470.20 –17.10 504.00 246.50 St James’s Place . . . . . . . . . . . . .273.30 +16.90 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .358.80 –4.70 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .433.80 –5.90 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .255.00 –2.70 281.70 171.00 Stagecoach. . . . . . . . . . . . . . . . .177.30 –6.50 204.90 126.20
Babcock International . . . . . . . . .551.50 –15.50 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . . 911.00 –7.00 1276.00 731.00 Mitchells & Butlers . . . . . . . . . . .313.80 –2.30 343.90 228.30 Standard Chartered . . . . . . . . . .1869.00 –30.00 1927.00 1310.00
BAE Systems . . . . . . . . . . . . . . .317.00 –1.60 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .597.00 +11.00 630.00 223.00 MITIE . . . . . . . . . . . . . . . . . . . . .209.20* –0.60 281.70 195.20 Standard Life . . . . . . . . . . . . . . .202.30 –1.70 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .252.10 –3.70 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .634.00 –3.00 664.50 475.75 Mondi . . . . . . . . . . . . . . . . . . . . .446.20 –3.80 488.00 238.75 SuperGrp . . . . . . . . . . . . . . . . . .988.00 +38.00 1030.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .339.10 –0.45 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .91.00* –0.80 96.80 74.50 Monks Inv Tst . . . . . . . . . . . . . . .292.80* –2.20 321.20 238.00 TalkTalk . . . . . . . . . . . . . . . . . . .122.00 –1.00 147.10 106.60
Barratt Development . . . . . . . . . . .97.55 –3.75 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .285.40 –7.70 396.20 138.00 Morrison Wm . . . . . . . . . . . . . . .270.50 +0.30 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .406.00 –7.20 501.50 341.40
BBA Aviation . . . . . . . . . . . . . . .195.00 –0.60 220.00 123.50 FirstGroup . . . . . . . . . . . . . . . . .374.10* –5.50 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .846.00* +5.00 893.50 632.00 Tate & Lyle . . . . . . . . . . . . . . . . .455.90* –6.40 509.00 336.50
Beazley. . . . . . . . . . . . . . . . . . . . 119.00 –1.50 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .274.90 –2.00 297.20 229.50 National Express. . . . . . . . . . . . .242.90 –2.70 258.60 155.86 Taylor Wimpey . . . . . . . . . . . . . . .27.01 –0.49 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .579.50 –3.50 927.50 554.00 Fresnillo . . . . . . . . . . . . . . . . . .1034.00 –6.00 1139.00 539.50 National Grid . . . . . . . . . . . . . . .513.00* –2.00 607.65 474.80
Berkeley . . . . . . . . . . . . . . . . . . .816.00 –11.50 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .259.50 –5.60 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2166.00 –14.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .433.50 –3.50 458.90 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1039.50 –23.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .468.00 –5.40 484.00 370.00 Northumbrian Water . . . . . . . . . .329.60 +0.40 331.60 219.90 Templeton Emrg Mkts . . . . . . . . .548.50* –8.50 598.00 390.00
BHP Billiton . . . . . . . . . . . . . . .1991.50 +23.00 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .139.90 –1.30 155.00 90.00 Old Mutual . . . . . . . . . . . . . . . . .121.90 –2.40 127.20 85.80 Tesco . . . . . . . . . . . . . . . . . . . . .396.00 –0.35 454.90 361.20
BlackRock Mining . . . . . . . . . . . .578.00 +6.00 654.50 412.00 GlaxoSmithKline . . . . . . . . . . . . 1134.50 –20.50 1347.00 1088.00 Pace . . . . . . . . . . . . . . . . . . . . . .209.00 –1.50 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .186.00 –7.30 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .43.86 –0.90 49.50 33.00 Great Portland Estates . . . . . . . .303.30 –3.60 332.10 219.00 Partygaming . . . . . . . . . . . . . . . .257.00 +3.10 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .323.60 –0.40 325.50 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .402.50 –3.50 658.20 296.00 Greene King . . . . . . . . . . . . . . . .442.80 –3.40 504.00 372.50 Pearson . . . . . . . . . . . . . . . . . .1000.00 –22.00 1069.00 667.50 Travis Perkins . . . . . . . . . . . . . . .830.00 — 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1005.00 +91.50 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .487.00* –10.80 562.50 324.00 Pennon . . . . . . . . . . . . . . . . . . . .577.50 +3.00 587.50 434.40 TUI Travel . . . . . . . . . . . . . . . . . . 211.60 –6.90 313.90 202.30
British Airways . . . . . . . . . . . . . .220.00 –4.50 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .275.00* +0.40 298.70 184.25 Persimmon . . . . . . . . . . . . . . . . .356.20 –13.50 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .345.00 –7.90 436.20 261.20
British Amer. Tob . . . . . . . . . . .2242.50 –17.00 2335.50 1807.00 Hammerson . . . . . . . . . . . . . . . .387.80 –5.10 460.30 325.50 Petrofac . . . . . . . . . . . . . . . . . .1287.00 –33.00 1372.00 730.00 Tullow Oil . . . . . . . . . . . . . . . . .1285.00 +12.00 1375.00 970.00
British Empire Tst . . . . . . . . . . . .437.30 –0.20 467.90 338.50 Hargreaves Lansdown . . . . . . . .360.60 +1.60 387.00 210.75 Petropavlovsk . . . . . . . . . . . . . .1039.00 –27.00 1370.00 601.00 UK Commercial Prop. . . . . . . . . . .76.10 –3.40 84.90 62.25
British Land . . . . . . . . . . . . . . . .469.70* –2.60 532.00 402.00 Hays . . . . . . . . . . . . . . . . . . . . . . .91.30 –3.00 119.00 86.00 Premier Farnell . . . . . . . . . . . . . .237.70 –2.70 252.60 138.50 Ultra Electronics . . . . . . . . . . . .1588.00 –25.00 1681.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .482.70 –6.30 518.00 316.25 Henderson . . . . . . . . . . . . . . . . .130.70 –0.80 157.80 101.25 Premier Oil . . . . . . . . . . . . . . . .1505.00 –28.00 1610.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1865.00 –5.00 2024.00 1524.00
Brown(N.) . . . . . . . . . . . . . . . . . .234.50* –0.20 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .414.00 –1.00 587.00 368.70 Provident Financial . . . . . . . . . . .819.50 –1.50 986.00 786.00
BSkyB . . . . . . . . . . . . . . . . . . . .720.00 +9.50 732.00 516.50 Hikma Pharma . . . . . . . . . . . . . .724.00 +5.50 746.00 430.00 Prudential . . . . . . . . . . . . . . . . . .551.50 –1.00 665.00 425.00 United Utilities . . . . . . . . . . . . . .562.00* –3.50 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .139.90 –1.60 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .348.90 –1.50 369.30 293.75 PZ Cussons . . . . . . . . . . . . . . . .351.20 +7.30 373.20 210.10 Utd Business Media . . . . . . . . . .549.00 –9.50 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .705.00 –11.50 784.50 514.00 Hochschild Mining . . . . . . . . . . .300.00 –7.00 370.60 220.00 Qinetiq . . . . . . . . . . . . . . . . . . . .126.70 –1.80 179.10 113.90 Vedanta Resources . . . . . . . . . .2524.00* +4.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .846.50* –6.00 886.50 436.00 Home Retail . . . . . . . . . . . . . . . .239.80 –2.00 336.50 208.50 Randgold Resources. . . . . . . . .5690.00 –10.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . .1214.00 –12.00 1245.00 613.50
Cable & Wire Comms . . . . . . . . . .60.25* –0.60 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2305.00* –20.00 2376.00 1336.00 Reckitt Benckiser . . . . . . . . . . .3230.00 –11.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .148.25* –1.95 153.80 117.30
Cable & Wire Wwide . . . . . . . . . . .68.45* –0.10 94.80 64.85 HSBC Hldgs . . . . . . . . . . . . . . . .663.30 –3.00 766.80 564.20 Reed Elsevier . . . . . . . . . . . . . . .532.00 +0.50 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1191.00 –28.00 1266.00 524.00
Cairn Energy. . . . . . . . . . . . . . . .468.90 –2.30 485.30 306.80 Hunting . . . . . . . . . . . . . . . . . . .538.50 +4.00 659.50 395.75 Regus . . . . . . . . . . . . . . . . . . . . . .76.25 +0.35 125.50 67.50 Wetherspoon(J.D.) . . . . . . . . . . .435.20 +0.10 556.00 378.70
Caledonia Invs . . . . . . . . . . . . .1596.00 –23.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . . 411.60* +0.10 478.30 291.70 Rentokil Initial . . . . . . . . . . . . . . .103.40 –1.10 140.20 86.75 WH Smith . . . . . . . . . . . . . . . . . .425.30 –1.80 551.00 396.00
Capita . . . . . . . . . . . . . . . . . . . . .730.50 –14.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .476.10 –0.10 492.20 291.00 Rexam . . . . . . . . . . . . . . . . . . . .327.60 –12.70 348.80 222.50 Whitbread . . . . . . . . . . . . . . . . .1438.00 –6.00 1645.00 827.50
Capital & Counties . . . . . . . . . . . 111.80 –1.90 125.40 99.60 Imagination Tech Gp . . . . . . . . . .340.00 +10.90 343.70 149.75 Rightmove . . . . . . . . . . . . . . . . .666.50 +4.50 729.00 398.75 William Hill . . . . . . . . . . . . . . . . .169.30 –1.90 217.80 160.50
Capital Shopping Centres . . . . . .348.80 –6.10 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .729.00 –10.00 786.00 314.50 Rio Tinto . . . . . . . . . . . . . . . . . .3387.50 +32.00 4104.00 2205.00 Witan Inv Tst . . . . . . . . . . . . . . . .446.00 –2.00 487.00 356.00
Carillion . . . . . . . . . . . . . . . . . . .308.40 –6.80 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1827.00* +7.00 2159.00 1624.00 RIT Capital Partners . . . . . . . . . 1158.00 –11.00 1215.00 910.00
Carnival . . . . . . . . . . . . . . . . . .2321.00 –10.00 2937.00 1649.00 Inchcape. . . . . . . . . . . . . . . . . . .313.50 +4.90 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .587.50 –6.00 631.50 367.75 Wolseley . . . . . . . . . . . . . . . . . .1452.00 +4.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .382.30 –1.30 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .393.10 –1.60 439.40 225.00 Rotork . . . . . . . . . . . . . . . . . . .1396.00 –18.00 1482.00 869.00 Wood Group (John). . . . . . . . . . .364.90 –4.70 411.70 261.50
Centamin Egypt . . . . . . . . . . . . .153.30 –0.50 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .756.50 +3.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .49.73 –0.62 58.95 28.25 WPP . . . . . . . . . . . . . . . . . . . . . .675.50 –6.50 744.00 440.00
Centrica . . . . . . . . . . . . . . . . . . .304.00 –3.70 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1108.00 –2.00 1244.00 629.00 Royal Dutch Shell A . . . . . . . . .1787.00 –34.50 2068.50 1521.50 Xstrata . . . . . . . . . . . . . . . . . . .1044.50 +13.00 1344.50 713.00
Charter Intl . . . . . . . . . . . . . . . . .750.50 –3.50 855.50 486.00 Intermediate Capital . . . . . . . . . .270.20* –0.30 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1707.00 –38.00 1997.50 1505.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2942.00* –54.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1604.00 –65.00 1745.00 1024.00 RSA Insurance . . . . . . . . . . . . . .127.80 –1.10 142.00 114.10
Chloride Group . . . . . . . . . . . . . .373.10* –0.60 390.50 131.00 Intl Power . . . . . . . . . . . . . . . . . .358.40 –11.10 375.90 243.00 SABMiller . . . . . . . . . . . . . . . . . 1911.00 –33.00 2090.00 1307.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .682.50 –5.00 806.50 660.00 Invensys . . . . . . . . . . . . . . . . . . .279.10* –13.90 350.30 234.50 Sage . . . . . . . . . . . . . . . . . . . . . .243.50 –5.00 260.50 185.90
Cobham . . . . . . . . . . . . . . . . . . .237.20 –2.30 278.60 173.60 Investec . . . . . . . . . . . . . . . . . . .502.00 –12.50 565.00 378.20 Sainsbury(J) . . . . . . . . . . . . . . . .345.70 –0.80 373.00 307.60 www.interactivedata.com

Energy firms drag down the US stocks fall after

FTSE as BG fails to deliver poor durable figures
the $30bn costs of its Gulf of Mexico underlying first-half pretax profits. not as robust in a few districts and
THELONDON oil spill.
Royal Dutch Shell shed 1.9 per cent,
Scottish & Southern Energy fell 5.4
per cent, also traded without its divi- THENEW YORK had lost steam over the past several
weeks.

REPORT with crude prices also lower.

Tullow Oil, however, bucked the
trend, rising 0.9 per cent after reveal-
dend.
Banks, which have been at the fore-
front of the recent rally, lost momen-
REPORT “With the nice rally that we had, it
looks like some profit-takers are start-
ing to take charge here and the Beige
ing its Ngiri-2 appraisal well found tum, with Lloyds Banking Group the Book sparked it,” said Ryan Detrick,

B U
RITAIN’S top shares fell yester- over 40 metres of net oil bearing biggest faller, down 3.4 per cent. S stocks fell yesterday after senior technical strategist at
day, dragged lower by energy reservoir in two zones. The bank has shelved plans to sell weak durable goods figures and Schaeffer’s Investment Research in
stocks after BG Group reported London’s blue chips echoed falls on off its 60 per cent stake in mid-cap a downbeat assessment of the Cincinnati, Ohio.
its quarterly results, and weak Wall Street after data showed orders wealth manager St James’s Place economy from the Fed’s Beige “Earnings have been good, but the
US data knocked sentiment. for US durable goods unexpectedly Capital, which rose 6.6 per cent. Book kept the benchmark S&P 500 overall economy is still sluggish at
The FTSE 100 index closed down fell in June, their largest decline since On the upside, BSkyB topped the trapped below its 200-day moving best and is not coming back as much
45.99 points at 5,319.68, having August, further evidence economic FTSE 100 risers list, up 1.3 per cent average. as we would have hoped,” he said.
gained almost 4.5 per cent over the growth cooled in the second quarter. ahead of results due out today, with A three-day rally built on strong The S&P’s 200-day moving average
last five days, and falling away from Meanwhile, Boeing 2010 profit out- Daniel Stewart raising its target price earnings boosted the index to close is currently around 1,114. Investors
the psychologically important 5,400 look was beneath analyst’s consensus ahead of the numbers. Monday above its 200-day moving are struggling to either define it as
level. forecast. AstraZeneca added 0.4 per cent as average, a closely watched measure of the top of a recent rally or a consoli-
“The near-term outlook for equities “To a large degree the UK market is the drugmaker urged US advisors to market direction. It has since stalled dation point leading to further
is very uncertain and you would not following the US trend, which clearly back its new blood thinner Brilinta as trading remains rangebound and gains.Paulsen said holding above
want to be taking major risks at this does not look too healthy at the drug ahead of second-quarter results technically driven. 1,100 could set the S&P for a run at
stage of the cycle,” said Peter Dixon, moment,” Dixon said. today. “In the short run technicals are the 1,150 level if fundamentals are
an economist at Commerzbank. In the UK, investors digested a del- dominating daily movements here supportive. Some investors are wary
Integrated oils was the worst per- uge of other corporate earnings news ANALYSIS l FTSE until we get a fundamental (piece of of committing ahead of a report on
forming sector, with BG Group down yesterday. 5,800 5,319.68 news) to knock us off that,” said Jim weekly jobless claims and US eco-
28 July
2.2 per cent after its second-quarter Invensys dropped 4.7 per cent after 5,600
Paulsen, chief investment officer at nomic growth later this week, he
numbers failed to excite. the engineer’s trading update raised Wells Capital Management. said.
“Although BG’s second-quarter fig- concern over its Rail division’s per- 5,400 Boeing disappointed investors after The Dow Jones industrial average
ures were above consensus, we do not formance for Nomura, which cut its 5,200
it forecast full-year earnings slightly dropped 39.81 points, or 0.38 per
see any strong drivers of near-term estimates for the firm. below estimates. The plane maker’s cent, to 10,497.88. The Standard &
share price performance in the Beverage-can maker Rexam shed 5,000 shares fell 1.9 per cent to $67.32. Poor’s 500 Index dropped 7.72 points,
results,” said Collins Stewart in a 3.7 per cent as the firm said visibility The US Federal Reserve’s Beige or 0.69 per cent, to 1,106.12. The
4,800
note. remained low and the global econom- Book, a summary of national eco- Nasdaq Composite Index dropped
Peer BP shed 0.9 per cent as the oil ic outlook remained uncertain after 4,600 nomic conditions, added to the disap- 23.69 points, or 1.04 per cent, to
major prepared to sell assets to cover posting an above-forecast rise in 19 May 9 Jun 29 Jun 19 Jul pointment. It indicated activity was 2,264.56.
 18 Investment | Listed Products
Investors need
to hedge their
equities risk
Don’t rely on stock market gains to deliver
decent returns, writes Juliet Samuel
S
AVVY investors should be moving
into any asset class except equities
– that’s at least according to Saltus
Partners’ Jon Macintosh. Macintosh
says that advanced economies’ stock mar-
kets are in for a period of downward or
sideways movement, potentially for the
next decade or more. He claims there’s
only one scenario in which investors
should stay in stocks: “If you’re confident
your life expectancy is over 100 years, it’s
safe to be in equities,” Macintosh says.
Because most exchange-traded funds
(ETFs) are linked to equity benchmarks, this
argument is one that should interest listed
product investors in particular. The increas-
ing proliferation of products that follow
alternative indices does suggest that there
is increasing demand for access to a wider
range of asset classes that most investors
were previously unable to access easily.
Research by iShares shows that since
2006, for example, assets under manage-
ment (AUM) in European exchange-traded
commodity products have risen from
€2.5bn to €21bn to make up 12 per cent of
all assets in exchange-traded products (ETP)
Domestic demand adds
to South Korea’s roar
A country ETF gives exposure to this cheap
and buoyant Asian Tiger, says Jessica Mead
F
ROM shipbuilding and car manufac-
turing to world-class information
technology and high-tech white
goods, South Korea has gone from
strength to strength since the 1960s.
In the 1990s, South Korean multination-
al firms made a deliberate shift towards
more high-technology goods and it is now
home to well known household names
such as Samsung, Hyundai, Daewoo and
LG. And as further evidence of the coun-
try’s growing clout, it is this year’s chair of
the G20 – the first emerging market coun-
try to play this role.
Indeed, such is the country’s global pres-
ANALYSIS l Performance of the Korean Kospi over the past six months
1,750
1,700
1,650
1,600
Mar Apr
in Europe, versus just 1 per cent five years
ago. Meanwhile, hardly a month goes by
without a raft of new currency products
launched in Europe, with ETF Securities
recently opening up 22 new currency ETPs
to investors.
AN EQUITY PLATEAU
But should investors take advantage of
the widening variety to get out of prod-
ucts pegged to developed market equity
benchmarks? Both Macintosh and Cube
Capital’s Francois Buclez point to certain
periods over the past hundred years
when equity growth has plateaued after
a boom. These plateaus are not straight
lines sideways, however, but periods of
high risk and volatility during which the
overall stock market fails to make sus-
Analysts point to three periods in the last
hundred years when equities delivered no
gains. We are in the midst of a similar run.
ence, it may surprise some that South
Korea is still seen as an emerging market.
For example, its GDP per capita is already
around $20,000 – only slightly behind
Portugal, Israel and Slovenia – while its life
expectancy is on a par with that of the UK.
Indeed, the FTSE Group announced that it
would reclassify South Korea as a devel-
oped market in September 2008.
But in contrast, benchmark index
provider MSCI announced last month that
it would maintain the MSCI Korea Index in
its emerging markets classification
because of continued difficulties experi-
enced by international institutional
Source: Bloomberg
May Jun Jul
CITYA.M. 29 JULY 2010
Equities often plateau tained gains. Overall, equity markets dropped below 40 per cent. “It dropped to
for a long time after a have been in one such period since 2001 35 per cent in 2008, but has bounced back
steep climb. and the last such period, during the in 2009 and 2010. And for all the focus on
Picture: GETTY inflationary years of the 1970s, lasted growth from emerging markets, the US
over 15 years. Equities failed to deliver and western Europe still account for over
the capital gains that are currently asso-
ciated with the asset class and both ana-
80 per cent of global AUM and that’s not
going to change any time soon,” says
lysts think the current plateau will last. Taneja, who forecasts that equities’ share
Cerulli Associates’ Shiv Taneja disagrees, of global mutual fund investments will
pointing out that 2008 was an extraordi- grow steadily in the coming years to reach
narily rare period in history in that the 45.1 per cent in 2014.
global share of investments in equities But Taneja, too, sounds a note of cau-
investors in accessing the country’s stock
markets. However, the MSCI added that
the index would remain under review for a
potential reclassification to developed
markets in 2011.
These concerns over accessibility make
exchange-traded funds (ETFs) an ideal way
for both institutional and individual
investors to gain exposure to one of Asia’s
strongest growth stories. Both Deutsche
Bank’s db x-trackers and BlackRock’s
iShares offer ETFs on the MSCI Korea.
The db x-trackers’ ETF has a total
expense ratio (TER) of 0.65 per cent per
annum while the iShares fund has a TER of
0.74 per cent. Both funds’ biggest holding
is Samsung, followed by steel manufactur-
er Posco and then Hyundai Motor
Company. The iShares ETF is weighted
most heavily in favour of information tech-
nology, which makes up 30.03 per cent of
the index, followed by financials (16.47 per
cent); industrials (14.09 per cent); materials
(13.72 per cent) and consumer discre- A bright future is seen “Korea still seems to us to offer the best
tionary (13.38 per cent). for Korea balance of risk and reward in Asia. It is the
But what is the outlook for the Korean cheapest market in the region on a 12-
stock index? The Kospi 200 sold off sharply Picture: GETTY month forward price-to-earnings ratio of
in May following North Korea’s sabre-rat- 9.2 times and a price-to-book of 1.3 times,”
tling and HSBC analysts note in their latest they write. Cheap valuations mean that
Asia Insights Quarterly that, historically, Korea is also seen as an inexpensive way of
increased tension between the north and getting exposure to Chinese growth.
south has often represented a good buying The Kospi, and consequently the MSCI
opportunity for Korean stocks. Korea, should benefit from earnings
Accordingly, they reiterate the overweight growth of 49 per cent in 2010, driven by
stance that they initiated last quarter and one-off rebounds in telecoms and utilities.
maintain their end-2010 target for the Next year’s forecast is just 7 per cent but
Kospi at 2,000, which is trading at 1,764.54. this appears to be very cautious and ana-
CITYA.M. 29 JULY 2010
tion about this growth: of the 16.2 per
cent increase in AUM during 2009, 15.1
per cent stemmed from a stock market
rally and only 1.1 per cent came from
new net inflows. This means that
although investors poured money back
into equities, they were less comfort-
able about making the investments
that might add to that equity growth
in future.
DIVIDENDS WILL GROW
As an alternative to equities, investors
could attempt to target distressed debt
– which should deliver high returns
given the amount of personal and busi-
ness debt still to be unwound. There
are few listed products that target this
area directly, however. Traders could
look at private equity index trackers –
iShares’ S&P Listed Private Equity fund
is up 24.33 per cent this year, while
Powershares’ Global Listed Private
Equity Portfolio has seen a 18.25 per
cent return. Both ETFs are down since
their inception, however, and relatively
expensive – the iShares private equity
ETF has a 0.75 per cent total expensive
ratio, for example. Moreover, distressed
debt is a risky area for many institu-
tional investors trying to deliver consis-
tent growth.
Another option is to consider divi-
dend-trackers. Macintosh argues that
as a counterpart to equities’ sluggish
capital gains, it is likely that dividends
will rise. Average dividend yields have
been far below their historical average
in the past ten years at under 2.5 per
cent, whereas they should be signifi-
cantly above government bond yields
to compensate for equities’ compara-
tively risky outlook.
Even for those who don’t agree with
the extreme thesis that developed mar-
ket equity growth is “dead” for the
time being, hedging one’s exposure to
the major benchmarks is a good idea.
Fortunately, with an ever-increasing
range of ETFs available, tracking bonds
is far from the only other way to make
an index-linked investment.
lysts suggest it may well be revised up – fur-
ther good news for the stock market.
Growth is also expected to be strong –
recent figures showed that the economy
grew by 1.5 per cent in the second quarter,
and first quarter growth was revised up to
2.1 per cent. Private consumption and
investment provided the chief supports to
growth in the second quarter, unlike in the
first three months of 2010, when (tempo-
rary) government spending and invento-
ries were central. This is good news, says
Lombard Street Research’s Maya Bhandari.
“Korea stands out for the strength of its
THE TIPSTER
MINING COMPANY MAY
HAVE RUN OUT OF STEAM
A
FTER an impressive run from 755p at
the beginning of the month
Antofagasta has managed to just pop
above the 1,000p level but it looks like
it might have just run out of steam leaving it
unable to break the earlier high of the year, of
1,088p. Worldspreads’ current price for
Antofagasta is 988p-991p.
Despite continued conflict with its trade
union, British Airways is likely to report
domestic demand, which will be vital if
the global economy double dips,” she says.
Korea’s prospects are good compared to
both its regional and emerging market
peers for two reasons, says Bhandari. “First,
its recovery has been good, but not exces-
sive. Industrial production, for example, is
11 per cent above the pre-crisis peak, plac-
ing it after only China and India among
significant emerging markets, but without
their shared stagflation risks.” Second, she
adds, unlike some of its pure-exporter
neighbours such as Malaysia, which faces
twin-threats from a Chinese and commod-
ity price relapse, Korea has solid domestic
demand to fall back on.
The Korean stockmarket is historically
cheap and has good prospects. Now is the
time to buy.
Investment | Listed Products 19
strong first quarter results on Friday. As well
as passenger traffic increasing, a fall in fuel LISTED
costs should boost profits. ETX Capital is
quoting 222.20p-222.90p for a rolling daily PRODUCT NEWS
contract. KATHLEEN BROOKS
Analysts are expecting a decent show
from National Express today when it pub-
lishes interim results. Following last month’s
trading statement, which stated that the
company is clawing back losses from the rail
arm of the business, expect a positive state-
ment and an optimistic outlook. Cantor Index
offers a spread of 242.69p-243.91p.
Dell's share price is knocking on the door
of a one-month high above the $14 mark. A
break above here could open up a move to
$15. Capital Spreads offers a price of
$13.64-$13.67.
Kathleen Brooks
Industrials ETFs are popular Picture: REUTERS
EUROPEAN ETFS ENJOY NET INFLOWS
Data provided by iShares, the ETF provider,
found that there were more than $226m of
net inflows to European sector ETFs that
track the Eurostoxx 600 last week. The
largest flows went to industrial goods and
services, which had $103m of inflows.
Utilities experienced the second largest
flows of $50m. However, banks experi-
enced net outflows last week to the tune of
$87m. Since the beginning of the year,
total outflows from ETFs have reached
$457m, with $237m coming just from the
banking sector. The telecommunications
sector has had the second largest outflows
of $212m. However, Europe’s media sector
has been the most popular with ETF
traders. It has experienced net inflows of
$232.8m since the start of the year.
NEW PRODUCTS LAUNCHED
Listed products traders can add 10 more
covered warrants to their trading shopping
lists. Investment bank Societe Generale has
added a total of 112 new covered warrants
in the past month. The latest products
include call and put options on BP that
expire in December 2011, calls and puts on
Royal Bank of Scotland also with expiry in
December next year, two call warrants on
the FTSE 100, both of which expire on 17
December 2010, and a call and a put war-
rant on sterling-USD dollar. SocGen has
also recently launched covered warrants
for aluminium, copper, gold, the S&P 500,
platinum and an agricultural warrant.
SURVEY IS UPBEAT FOR ETFS
The latest BlackRock survey of the ETF
industry for the second quarter was
released this week and it was upbeat about
the future for the ETF industry in Europe.
It found that ETFs remain a competitive
product for investors – the average total
expense ratio (TER) for equity ETFs in
Europe are 40 basis points. This compares
with 91 basis points for equity index funds
and 180 basis points for an average equity
fund. The most popular underlying asset
class was fixed income, which has more
than 20 per cent of all ETF assets. The sec-
ond most popular asset is individual coun-
try equity indices with 14 per cent of total
ETF assets.
Innovation remains rife: since the start of
the year there have been 135 new ETF
ANALYSIS l The sectoral weightings of SECTOR % product launches across Europe and 65 are
iShares' MSCI Korea currently in the pipeline. But the market for
Information Technology 30.03 these products remains fairly concentrated,
Financials 16.47 with only three main players. ETF provider
iShares remains the largest, with more than
Industrials 14.09 35 per cent of total market share, 173 prod-
ucts and a total of $77.9bn in assets. Lyxor
Materials 13.72 follows with a nearly 20 per cent market
Weight share and db x-trackers has 135 products
%
Consumer Discretionary 13.38
and a 16.5 per cent market share. Although
Consumer Staples 4.83 net sales of mutual funds in Europe raised
$73.5bn during the first five months of
Telecomm. Services 2.96 2010, ETFs are nipping at their heels. Total
ETF sales over the same time period were
Energy 2.20 $23.6bn. BlackRock predicts that global
Utilities 1.84 ETF assets will grow by 20-30 per cent in
2010. In Europe there were 961 ETFs at the
Source: iShares
Health Care 0.47 end of the second quarter, with assets of
$218bn.
 City Focus
20
Graduates with chutzpah can find jobs
There is plenty of work about
if you are willing to put in the
effort, writes Jeremy Hazlehurst
I
T’S tough out there for graduates. A
survey by the Association of Graduate
Recruiters found that for every job
there are 68.8 applicants, with the
number going up to 205 for jobs in food,
confectionary and cosmetics. Aldi, the
supermarket chain, received 12,000 appli-
cations for 50 places on its management
scheme. Seventy-eight per cent of employ-
ers will only look at those with a 2.1.
But it’s not all doom and gloom, espe-
cially in the City. Firms are recruiting
again – Ernst & Young is looking for 30 per
cent more people this year than last year,
and it will employ 900 university leavers
in 2011. Youngsters are appreciated too. A
survey by City recruiter Robert Half found
that 63 per cent of employers prefer
younger people. They also say that some
employers believe that today’s graduates
are more commercially-minded than
those from the generation preceding
them. Youngsters are sharp, learn fast –
and they are relatively cheap.
If you are a graduate and you are read-
ing this, then you are probably already in
the City, perhaps on a placement, so
you’ve got your foot in the door. But the
question now is how to translate that into
a job offer. David Royston-Lee, former head
of career management services at KPMG,
has recently written a book called How to
Win From the Start, based on the number
of people who said to him that they wish
they had known in their 20s what they do
now. Firstly, he says, don’t be defeatist.
There are lots of people sitting on sofas
right now saying that there is no point in
looking for a job. Well, the jobs aren’t
going to arrive if they stay on that sofa.
They do exist, and only those who look
will find them. If you are out there, you
have a head start.
This might sound silly, but don’t be
Too busy to find a new role?
)RU([HFXWLYHV(DUQLQJ…N…P
| Careers
tempted to take any old job. Make sure you
go for something that suits you.
Otherwise, you won’t enjoy it, and you
won’t be good at it. Ask yourself three
questions: “Who am I?”, “where am I
going?”, and “how am I going to get
there?” Talk to people about what differ-
ent jobs involve. Do as many internships
as possible. “Do them in as many places as
you can, and do some temp work to find
out what you are good at. Talk to some-
body who is already working there before
you apply,” says Royston-Lee, so you know
if it’ll suit you. If you have to work in the
evenings to finance unpaid work experi-
ence, then so be it. That’s life right now.
If you are job-hunting then you are like-
ly to have plenty of interviews. One prob-
lem of being young is that you don’t have
a lot of experience, so how do you
impress? You should think about what you
are passionate about and find ways of talk-
ing about it, says Royston-Lee. “I get people
to write vignettes about what they’ve
done, showcasing their talents. If some-
It’s always worth body asks you it helps if you have prac-
paying attention. ticed those stories.”
If you have run something – a business,
Picture: GETTY a magazine, a theatre group – put it down
and ensure you tell people. People do not
expect you to have the skills for the job,
they are “looking for somebody with some
passion, some chutzpah, some energy.”
Make sure you know about the business
that is interviewing you. If it is an invest-
ment bank, they will ask you about invest-
ment banking. Prove you are interested.
Once you are on a placement, you have
to shine. Don’t do the bare minimum, and
don’t moan that you are not being paid.
“There are loads of other people doing the
same as you, so you need to offer to do
more than the job you are being employed
to do,” says Royston-Lee. Be keen, ask for
work, but don’t overdo it. “Don’t act like
somebody who is just trying to get atten-
tion; you have to be authentically you.”
Also, he says, get networking – the peo-
ple you are working with could be the con-
tacts who will give you a job later on.
CITYA.M. 29 JULY 2010
HOW TO MAKE
THE RIGHT
IMPRESSION
EMMA DE VITA
IMAGE IS EVERYTHING
Look conservative with a small c – think
West Wing, not Sex and the City. Make
sure that you accessorise carefully and
avoid any novelty fashion. If in any doubt,
aim for a smarter look than you think is
needed – it’s better to be safe than sorry.
ACT CONFIDENT EVEN IF YOU’RE NOT
Banish fidgeting, hair twirling and other
non-confident body language and replace
tentative words (maybe, perhaps, might)
with positive, vigorous ones. Each time you
tackle a scary situation, praise yourself for
what you did well and chalk the rest up to
experience. Recognise that even the most
outwardly confident people get butterflies.
SHARE WATERCOOLER MOMENTS
We may be expert tweeters and texters
but are we losing the ability to make con-
nections face-to-face? Spend time getting
to know the people you’re working with
and it will pay dividends. Find shared inter-
ests with people. Talking about the latest
football scores or the X-Factor doesn’t
make you seem unprofessional – just
friendly.
LISTEN
Communication skills aren’t just about
talking; listening is really important too.
Check body language, give your undivided
attention and don’t interrupt. Keep your
opinions to yourself and make sure you
also hear what’s not being said.
NETWORK ONLINE
If you meet someone interesting, keep in
touch via LinkedIn or join professional
online forums. But be careful – remember
that posted comments don’t disappear
overnight, and keep your personal and pro-
fessional life separate. Keep Facebook for
the social stuff and don’t add people you’ve
worked with unless they are actually
friends.
...AND MAKE THE MOST OF FACE-TO-FACE
TIME, TOO
Networking isn’t just for ladies who lunch.
Those who have done well in their careers
will always have the ear of the person who
matters so go out and meet people. If you
accept an invitation to a meeting or event,
read up on the people who are going to be
there beforehand so you’ll know who might
be attending and who might be useful in
securing you a job.
WATCH THAT YOU’RE NOT OVER-CONFI-
DENT
If you come into an office assuming that
everyone fancies you and loving the sound
of your own voice, then nobody will take
you seriously. Tone back the language, sit
back, listen and pause before you speak to
allow your brain to engage before your
mouth.
BE AUTHENTIC
Authenticity is about having enough self-
awareness to know what your strengths
are and how to use them to your best
advantage to get a job. Practice adapting
to your new surroundings while remaining
yourself. Whether you take on a challeng-
ing project or spend some time abroad,
&RQWDFWXVWRGLVFXVV\RXUQH[WPRYH7 find out who you really are.
(ORQGRQ#LQWHUH[HFFRXN:ZZZLQWHUH[HFFRXN The Management Masterclass by Emma De
Vita is published by Headline priced £10.99
and is available to buy in all good book-
shops.
CITYA.M. 29 JULY 2010
What now? Prepare for the next crisis
Climate change is the
next challenge for
finance professionals,
writes Andrew Leck
P
REDICTING the future can be a
notoriously tricky business. If peo-
ple declare with certainty that
things will happen, they often
don’t. While things that no one saw com-
ing have a horrible habit of actually hap-
pening.
The Asian financial crisis in 1997 came
as everyone was talking about an “Asian
economic miracle”, while the most recent
economic crisis came as some in the West
were predicting an end to economic
“boom and bust”.
Predicting the future may be hard, but
at least it can prepare us for a tomorrow
that is different from today. The financial
crises in the past decade-and-a-half have
hurt so much because nobody was pre-
pared; financial crises just didn’t seem
possible while everything was going so
well. We have seen the effects of not being
prepared, and it must not happen again.
A look back only 20 years ago demon-
strates this perfectly. In 1990, South Africa
was still afflicted by apartheid; the USSR
was still around, and the internet was
only an academic’s play thing. Just imag-
ine what the next twenty years will look
like.
Predicting the future means challeng-
ing some of the basic assumptions of the
present.
THE WORLD IN 2030
This is precisely what the Association of
Chartered Certified Accountants (ACCA)
has tried to do with its latest report,
Where Next for the Global Economy: A
View of the World in 2030. The report col-
lates the opinions of 15 global experts,
including CNN’s John Defterios, KPMG’s
global head of tax Loughlin Hickey, the
World Bank’s Tony Hegarty, and
PricewaterhouseCooper’s managing
director for Malaysia Chin Kwai Fatt.
So, what will the world look like in
twenty years time?
The world in 2030 will have a flatter
distribution of global power. We’re
already seeing this process take place
with the G7 becoming the G8, and most
recently with the G20 coming to the fore.
By 2030, a reduction or even removal of
trade barriers and the wider dispersion of
influence will see regional competition
and suspicion be replaced by a genuine
desire amongst countries to work togeth-
er. The East and emerging markets will no
longer be spoken of as “the next big
thing”. They will be the big thing.
PwC’s Chin Kwai Fatt predicts that “if
the resulting landscape is such that…
emerging economies will have a greater
“Carbon and sustainability accounting is one
of the most crucial issues facing the profes-
sion in both the short and long-term.”
role there will be a higher degree of
mutual dependence – to the extent that
we will not just be relying on the US
domestic market. Hopefully emerging
economies will create new market clus-
ters which, in turn, will promote two-way
economic potential between the US and
other trading nations. It will therefore
become a two-way flow, rather than a par-
allel universe, where goods are shipped to
the US while capital is shifted to the East”.
The world in 2030 will be in the midst
of an eco-crunch. While countries may
well see the world’s wealth as shared,
there will be serious tensions over the
dwindling supply of natural resources. Oil
may be one of the world’s biggest com-
modities today, but in 2030 fresh water
will be the big one. Declining resources
will be put under pressure by a global
City Focus | Accounting
population heading towards 9bn by 2050,
according to UN predictions.
Sustainability will be a burning issue for
every stakeholder in the global economy.
The world in 2030 will have globalised
regulation. Agreement on harmonised
standards will be a positive development
– especially the global acceptance of
International Financial Reporting
Standards – and regulatory arbitrage will
be minimised. There will be more volun-
tary and self-regulation as businesses
around the world recognise the need for
stricter controls in the aftermath of the
2008-2010 financial crisis and react to
pressure to demonstrate to stakeholders
that they are pursuing responsible and
sustainable commercial practices.
The world in 2030 will be a world of
shopkeepers. The corporate ecosystem
will be more diverse and far more com-
plex. Increasingly virtual ties will connect
specialist and remote businesses, located
in increasingly specialised regions and
cities. Small businesses will act like shoals
of fish, becoming a strong global force.
The corporations of 2030 will be an amal-
gam of specialist businesses, connected
through looser agreements and employ-
ing a more intuitive form of outsourcing.
Today’s biggest companies will de-con-
glomerate, outsourcing almost all central
functions to achieve efficiency.
Federations of businesses will be the cor-
porations of tomorrow.
CLIMATE CHANGE IS THE NEXT CRISIS
What does this mean for finance profes-
sionals? These changes will affect every
business, every sector, and every govern-
ment. As head of ACCA UK, what interests
me personally is how this future will
affect accountants. While accountants
will have a role to play in all of these
changes, the one in particular that leaps
out as an area of opportunity is the future
of the earth’s resources.
What will be the point of making
grand predictions and plans for the
future if the natural environment, upon
which everything is based, is crumbling?
21
A new global
economic order and
climate change will
dominate the future
Picture: GETTY
Carbon and sustainability accounting
is one of the most crucial issues facing
the profession in both the short and the
long term. While the immediate financial
crisis will eventually pass, the climate
change crisis will remain. The accountan-
cy profession recognises that if we have
not already reached the point of irre-
versible climate change, we soon will.
Either way, both scenarios contain
inevitable tough choices and costs for
business and society.
A GREEN-COLLAR ECONOMY
ACCA believes that the creation of a gen-
uine global green-collar economy will
therefore not only be vital, but will also
bring with it exciting possibilities for
smarter technologies and businesses.
Accountants will have a key role to play
in bringing about a low carbon world
through leading on the disclosure of com-
panies’ carbon emissions and the audit-
ing of these disclosures to quantify and
promote the financial consequences of
climate change. To drive this, what’s
needed is a common, internationally-
accepted carbon accounting standard.
By adopting relevant principles and
objectives of financial reporting, we can
construct a workable reporting method
to enable companies and investors to
identify the major trends and significant
events related to resource availability and
climate change that affect a company’s
current or future financial condition.
Yes, there will be some increased costs
of implementing new reporting mecha-
nisms, but these costs will be vastly out-
weighed by the benefits.
Some of the predictions made by our
panel won’t come true. There will be
other things that will happen that our
panel haven’t thought of. But at least by
considering the possibility that the future
will be a different place, we can begin to
prepare now, especially for the challenges
presented by our changing environment.
We have to be ready for “different” and
we have to begin preparing now.
Andrew Leck is head of ACCA UK
 Lifestyle
22
A sorry tale for our times
Jonathan Coe’s hero
turns his chronic
dulness into tragedy
THE TERRIBLE PRIVACY OF
MAXWELL SIM
BY JONATHAN COE
Viking, £18.99
by Zoe Strimpel
hhhhi
JONATHAN COE represents the pinnacle of
British picaresque – his iconic novel about
80s Britain, What a Carve Up, hilariously
and tragically skewered the stereotypes of
the time while developing a narrator who
is impossible not to care for even as you
pity or despise him.
The Terrible Privacy of Maxwell Sim is
on a par with that book: a barely believable
(and often not at all credible) series of coin-
cidences and fantastically odd situations
converges on our narrator, Maxwell Sim, of
Watford, who is as sad as he is boring.
On his way back from a failed bonding
visit with his father in Australia, the
recently single Sim meets a lovely girl in
Singapore Airport: Poppy. He is delighted
to discover a genuine spark with someone,
a woman no less, and they stay in touch.
Poppy introduces him to the story of
Donald Crowhurst, a real-life adventurer
who – on realising that he couldn’t com-
plete his 1969 round-the-world sailing
challenge alone -- meticulously faked his
log-books, became overtaken by loneliness
and, ultimately, suicidal.
Meanwhile, Sim accepts a bizarre mar-
keting gig selling toothbrushes in the
Shetlands. As he reaches the farthest end
of the country, he becomes obsessed with
Crowhurst’s story, identifying his loneli-
ness and impotence with the other man’s
tragic failure.
Coe is a master of running comedic cir-
cles around real psychological drama. The
shock ending of this book is an electrocut-
ing jolt to close a clever, sad and often
deeply funny novel.
BOG-STANDARD BRITAIN:
HOW MEDIOCRITY RUINED
THIS GREAT NATION
BY QUENTIN LETTS
Constable, £7.99
hhhhi
by Alex Deane
THE DAILY Mail has a hard time of it. People
are judged for reading it and judged for
writing it. Yet I generally find it both power-
ful and sympathetic. Others, to put it mild-
ly, disagree. If you like the Mail, you’ll like
this book; if you don’t, you won’t.
Letts, a longstanding Mail columnist, has
written a companion volume to his earlier
book, “50 People Who Buggered Up
Britain”. As with its predecessor, Bog-
Standard Britain delivers on the promise of
its title.
This is a tremendously angry book, writ-
ten with vim and vigour. Parts are best read
aloud, so as best to squeeze the wrath from
each paragraph’s inevitable rhetorical ques-
tion. If it doesn’t flow much, sometimes
moving clunkily from one chapter to the
next without appreciable connection, it’s
to be expected from a past master at turn-
ing in weekly vituperative columns.
The usual suspects are here – the equali-
ty agenda, political correctness, health and
safety, the EU, “modern art”, Jonathan Ross
and all he stands for. Each is enjoyably
drubbed in turn. At his best, when his
| Books
forensic attention is turned to demolishing
a specific aspect of modern British society,
there is no-one better than Letts. The three
pages he devotes to the irritations of unnec-
essary railway announcements are glori-
ously spot-on and can stand as the final
word on the subject.
The Mail speaks for a segment of our
society who feel left aside in their own
country. Letts is the champion of that
cause, and this book is the apotheosis of
that thinking. It will and deserves to sell
well. Alex Deane is a barrister and the director of
Big Brother Watch think tank.
THE INFIDEL
BY BOB SHEPHERD
Simon & Schuster, £12.99
hhhhi
by Zoe Strimpel
THE INFIDEL opens in Kabul in 2008 with
a British foreign correspondent staring at
an empty computer screen.
From this high-tempo, current setting
unfolds a compulsive war thriller. Author
Bob Shepherd is a security advisor and a
former SAS soldier, and he knows his sub-
ject inside and out: The Infidel’s gritty
details speak volumes and its plot is tight.
Just as you’d expect of an elite air force
man like Shepherd.
Shepherd casts himself rather transpar-
ently in the story. When Islamic militants
infiltrate an elite British counter-nar-
cotics programme, disaster is averted
The sad story of thanks to ex-SAS soldier John Patterson
Donald Crowhurst (ahem) and Dusty Miller. But when fallout
(above), who failed to from the affair threatens to topple the
sail around the world West’s fragile Afghan alliance and expose
in 1969, obsesses failings inside the UK’s new crime fight-
Maxwell Sim. ing agency, John and Dusty suddenly find
themselves on the wrong side of the law,
Picture: GETTY and on the run.
One place only holds the key to clearing
their names: Nuristan, a remote Afghan
province and notorious haven. But their
journey to freedom will thrust them
deeper into the Afghan conflict than they
ever imagined. Battling hostile terrain
and Islamic fighters, John and Dusty
emerge as the unlikely champions of an
ancient community torn apart by Al
Qaeda and western forces.
Gripped? You will be.
OUT OF OFFICE
TIMOTHY BARBER
TOM AIKENS SERVES UP CLOUDY BAY
If you’d happened by Parsons Green at
the weekend you’d have seen celebrity
chef Tom Aikens cooking takeaway dish-
es in an ad-hoc shack erected by wine
producer Cloudy Bay. The dishes,
designed to go with Cloudy Bay wines
and including spicy crab cakes and
deep-fried paprika, are now available
at his Chelsea brasserie Tom’s Kitchen
throughout August, as are some of the
scrummy wines. Tom’s Kitchen, 27 Cale
Street, SW3 3QP. www.tomskitchen.co.uk Tom Aikens.
CITYA.M. 29 JULY 2010
VEXED IN THE CITY
SOLVING YOUR
WORK-LIFE
PROBLEMS
While the boss
is away, can the
employees go
off and play?
DEAR VEXED: As usual, the office largely
clears out over August. Of particular
interest is the fact that my boss is going
to be away in Greece for three weeks. But
I’ve already taken my year’s holiday and
I’ll be here. Here’s the thing: I’d love to
use his holiday as a time to bunk off at
work. I’ve been working hard all year
after all. Is this fair enough? Or is it
unwise to slow down just because the
boss is away? Rob, 29, IT and comms
W
E’VE just come out of the biggest
recession since the Great Depression
and only now has some sense of secu-
rity begun to (tentatively) return to
the City. And you’re suggesting “bunking off”
while the boss is on hols? Not wise. You’re lucky
to still have a job, and by your attitude I’d wager
that you might not have one for too terribly long
if you continue in this vein.
Right, telling-off over. But I do think you
need to sit down and consider what you’re
doing with your life such that you’re still think-
ing like a schoolboy in terms of bunking off
when the teacher (or boss) isn’t looking.
Now, take the issues apart. You say you’ve
been working hard all year and feel you
deserve a break. If you feel that you’re not
being compensated for your labour either by
time off, promotion, pay or encouragement,
then you should ask to speak to your manager
about how you can increase your value to the
company so that you’re not just blindly labour-
ing away, losing heart.
On a practical, job-safety level, remember
that office walls have eyes. Your boss may be
technically away, but if he’s anything like my
boss, he or she will have one eye on the office.
And the office won’t be entirely empty – I pre-
sume at least one of your boss’s deputies will
be around. Think of those who are left as spies
reporting on your performance.
It’s understandable that you see August as
prime bunking-off time – it’s true that so many
people are away you can get lost (intentionally)
between the cracks and sometimes it can be
frustrating trying to get anything done as so
many people are away. But think of it as a time
for creativity, not dossing. Left to take your
time over things you can imbuet them with
your own imprint. Rather than thinking of how
to do your job worse, think of how to do it
better. It’ll make you happier in the end.
Honest. vexed@cityam.com
SHIRLEY AND RITA HIT THE WEST END
A double bill of Willy Russell’s classic
comedies about women on the up, Shirley
Valentine and Educating Rita, has opened
at the Trafalgar Studios following an
acclaimed revival at the Menier Chocolate
Factory. Meera Syal stars as holidaying
housewife Shirley Valentine, while Laura
Dos Santos and Tim Piggott-Smith are
Educating Rita’s Open University profes-
sor and pupil. Until 30 Oct, Trafalgar Studios 1,
Whitehall, SW1A 2DY. Tickets from £15 from
www.ambassadorstickets.com
CITYA.M. 29 JULY 2010
The queen of cocktails
Fresh summer drink or hangover staple, the Bloody
Mary offers numerous possibilities, says Timothy Barber
C
LASSIC morning-after pick-me-up or smart aperi-
tif; fresh, salady cocktail for a summer afternoon,
or thick, spicy meal-in-a-glass to fire up a winter’s
evening. The Bloody Mary is arguably the most
diverse cocktail around, in both when you would drink it
and how you should make it. At it’s most
basic level, it involves a slug of vodka mixed
with tomato juice, Tabasco sauce,
Worcestershire sauce, seasoning (normally with
celery salt) and a bit of lemon juice. But the varia-
tions are endless, and come down to personal taste,
including how spicy to make it. We asked the people
behind three of the best Bloody Marys to be found in and
around the City for their tips.
HAWKSMOOR
157 Commercial Street, E1 6BJ, www.thehawksmoor.co.uk
Pete Jeary at Shoreditch’s steakhouse extraordinaire uses
Ketel One Citroen vodka – “it’s infused with citrus
flavour from fresh fruit and is very smooth, perfect for a
Bloody Mary,” he says. Jeary uses a slice of fresh red chilli
instead of Tabasco, for extra fresh flavour. He includes a
teaspoonful of his own spice mixture (a blend of smoked
sea salt, cumin, celery seed, fennel seed and black pep-
per) and adds lemon juice, Worcester sauce, a pinch of
homemade celery salt, and tops it off with a dash of
Talisker whisky. “Roll it with ice in the shaker – don’t
shake it vigorously – but don’t serve it on ice, because it
separates the tomato juice when it melts.”
PRISM
147 Leadenhall St, EC3V 4QT, www.harveynichols.com
The grandiose City bar and restaurant has introduced
extra kick to its Bloody Mary by using mustard-infused
SUPER-SUPER PREMIUMS | A NEW BREED OF VODKA
According to drinks company Whyte and Mackay, the
last few years have been tough. Spirits, including
vodka, have taken a serious hit. But there’s one area
that’s bucked the trend: super-premium vodkas. In
other words, seriously posh vodka sells.
We’ve now entered a brave new world of even
higher-end, wilder and more innovative voddie, with
truly rarefied brands nibbling up a decent fraction of
market share. Complete with ornate, subtle marketing
and luxurious additives, the new fleet are a truly
suave bunch. Your Bloody Mary need never be the
same.
One remarkable (relative) newbie is Pinky, created
to “taste” pink by a team of champion wine (yes,
vodka made by boutique spirits producer
Sipsmith. It’s named the Bloody Scarlet (after
Cluedo’s Miss Scarlet – there’s another vodka
cocktail at Prism titled Colonel Mustard, and a
booze-free number called Professor Plum), and
the mustard complements the drink’s savoury
nature, says drinks maestro Joel Groves. “Along
with the horseradish, it makes it really zingy
and perfect as an aperitif,” he says. Groves
includes fresh grated horseradish – he says
shop-bought horseradish creams are too
acidic – and both fresh and smoked chillis.
Extra freshness comes from blitzing fresh
celery and blending it into the mix, while
cherry tomatoes on a cocktail stick make
an alternative to the traditional celery garnish.
REDHOOK
89 Turnmill Street, EC1M 5QU, www.redhook.com
Alex Orwin, mixologist at Clerkenwell’s hotly-
tipped new seafood and steaks restaurant, recom-
mends blitzing down tinned tomatoes instead of
using supermarket tomato juice, which tends to
contain additives. As well as seasoning, he recom-
mends adding some sugar. “You can think of it in
terms of making pasta sauce. You need decent
amounts of salt, pepper and lemon juice, and a
tiny splash of sugar syrup brings out the natural
sweetness of the tomatoes.” He prefers soft, neu-
tral vodkas like Finlandia or Grey Goose, and fin-
ishes things off with a splash of nutty Tio Pepe
fino sherry. “Particularly if it’s a hair-of-the-dog
drink, you need a taste explosion, and the sherry
does that.”
wine) tasters in Sweden. It’s distilled from slightly
sweet winter wheat and glacial water, with 12 botani-
cals that are hand-blended into the vodka, giving it its
flavour and aroma. It goes down so easily you need to
be careful, but it does give a Bloody a great edge.
For the truly premium-obsessed, there is Black
Moth, a vodka infused with Périgord truffle, launched
last month. Distilled five times and triple filtered, it’s
probably the best vodka to accompany food; as for
cocktails, the options are endless.
And let us not forget about Camitz sparkling
vodka, made from ice-age Swedish springs and
Scandinavian wheat, and carbonated with what the
makers call the “purest gas in the world” (they would,
Whole Native Lobster & Chips
With A Glass Of J&B NV Champagne
Celebrating Justerini & Brooks 250th Anniversary
Boisdale of Belgravia - Boisdale of Bishopsgate - The Lamb at Hindon
15 Eccleston Street,
London, SW1W 9LX
020 7730 6922
Lifestyle | Food & Drink
wouldn’t they). Talk about adding a zing to
your cocktail, though.
Other frontrunners – favoured by top
London mixologst Joe McCanta, of Saf –
are Ciroc, made from grapes grown in
Cognac rather than from wheat;
Akvinta, from the lush Imotski region of
Croatia and made using Italian wheat,
and Chase, a family-run distiller produc-
ing the UK’s only potato vodka.
McCanta describes the latter has hav-
ing “toasted almond, white pepper and
a slight buttery finish”. Now that’s
what I call premium. Zoe Strimpel
£24.50
Subject to availability until 16th August
Swedeland Court,
202 Bishopsgate
London, EC2M 4NR
020 7283 1763
www.boisdale.co.uk
23
GOING
OUT
TIM BADHAM
Nothing beats a
warm night
outside in town
W
ITH the summer just about living up to
expectations this year, outside space has
become the holy grail when picking a great
place to drink in London. It’s certainly tricky
to find in Mayfair and the West End so when the sun
does come out, here are some of the best alfresco spots
to seek out along with some shiny new arrivals. St
James is a good place to start with a nice rosé outside
Franco’s on Jermyn street (it has the best selection in
London) and then over the road to Blue Ball Yard for
the Stafford Hotel’s tucked-away courtyard where you
can enjoy a superb cocktail from the American Bar and
some wonderful platters. The garden at The Ritz is also
just round the corner and is lovely, if you can get in.
Heading up Bond Street, Lancashire Court has both
Hush and the trendy Mews of Mayfair. North of
Oxford Street it’s hard to beat the lovely garden at
Home House where you can rub shoulders with rock
stars and hedge fund managers alike, or further west
try a glass of champers at the Langham’s brand new
Laurent Perrier Terrace Garden.
No 5 Cavendish Square has two cute back terraces
and also a wonderful secret roof garden, although is
used more for special events. There is also the stunning
outside/inside terrace at The Sanderson, which has
the covers off for summer. If you are looking for fresh
air with your plein air you might have to aim higher. The
three spacious balconies at Aqua on Argyle Street are a
very welcome addition but there is also the very recent
Soho Sky Terrace just around the corner at the
Courthouse Hotel and the newly redesigned Vista roof
garden on top of The Trafalgar Hotel which has amazing
views – all three have an Ibiza-esq feel. The Serpentine
Bar and Kitchen (Hyde Park) and Inn the Park (St
James’s Park) can be lovely and probably offer the best
great outdoors experiences. Other notable mentions
slightly further afield include Tom’s Terrace and The
Yacht London down by Embankment, Eight
Moorgate and Coq d’Argent’s terraces in the City, the
trendy Boundary and Shoreditch House out East,
Bluebird’s courtyard and Tuatara’s balcony on the
King’s Road to the west, and of course the unique Roof
Gardens in Kensington. Tim Badham is the founder of
Innerplace, London’s leading providers of VIP entertain-
ment, including film premieres, fashion shows, launch
parties and members club access. www.innerplace.co.uk
Hindon near Salisbury,
Wiltshire, SP3 6DP
01747 820 573
 24 Lifestyle | TV& Games CITYA.M. 29 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm Celebrity MasterChef
9pm The Secret Tourist
10pm BBC News
10.25pm Regional News
10.35pm Stealing Shakespeare
11.25pm FILM Three Fugitives:
Comedy, with Nick Nolte,
Martin Short and James Earl
Jones. 1989; Weatherview
1.05am Sign Zone: Panorama
1.35am Sign Zone: Countryfile
2.30am Sign Zone: Celebrity
MasterChef 3.30am Sign Zone: Put
Your Money Where Your Mouth Is
4.30am-6am BBC News
5.30pm Live Athletics
European Championships
Further coverage from the
Olympic Stadium in Barcelona.
9pm CHOICE Five Days That
Changed Britain: How the
coalition Government was
formed.
10pm Mock the Week:
Highlights of the quiz show,
hosted by Dara O Briain.
10.30pm Newsnight: With
Gavin Esler; Weather
11.20pm Imagine: Spanish
tenor Placido Domingo reflects
on his career in opera.
12.15am Wild Wales
1.15am BBC News 4.30am-6am
Close
6pm London Tonight 6pm The Simpsons: Lisa tries 6pm Home and Away
6.30pm ITV News to become a tap dancer. 6.25pm Don’t Stop Believers
7pm Emmerdale 6.30pm Hollyoaks: Steph 6.30pm Live from Studio Five
7.30pm Cashing in the worries Gilly is planning to pick 7.15pm Cricket on Five:
Criminals: Tonight up where he left off with Jem. England v Pakistan.
8pm Emmerdale 7pm Channel 4 News 8pm CHOICE The Man Who
8.30pm Coronation Street 7.55pm 4thought.tv Moves Buildings: A large
9pm CHOICE Police, Camera, 8pm Location, Location, historical house is transported
Action! Location: Revisiting two through a busy town; Five
10pm ITV News at Ten couples who wanted to buy News at 9
10.30pm London News dream starter homes. 9pm The Hotel Inspector FIVE DAYS THAT CHANGED
10.35pm FILM Lethal Weapon 9pm Undercover Boss 10pm FILM Edison 2005 BRITAIN BBC2, 9.00PM
1987 10pm Big Brother: The latest 11.55pm Don’t Stop Believers Documentary telling the story of how
12.35am The Zone; ITV News footage from inside the 12.05am SuperCasino the coalition Government was formed.
Headlines compound. 4.05am House Doctor 4.30am Interviewees include David Cameron
2.40am The Jeremy Kyle Show 11.10pm Skins House Doctor 4.55am Animal and Nick Clegg.
3.35am Cashing in the Criminals: 12.15am Dirty Sexy Money Rescue Squad 5.10am The New
Tonight 4am-5.30am ITV 1.10am The Ascent of Money Tomorrow 5.35am-6am Michaela’s
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
  

SUDOKU KAKURO
7 33 13 15 9 34 
10 14 9
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45
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row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 4 11 7
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above or to the left of it. 21 12
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column, but it must be in a
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mineral (4)
3 Appease, placate (6)
5 ___ Lanka, country (3)
2 Computer code
representing
text (inits) (5)
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I E 6 Flat round object (4)
7 Formerly the basic unit 4 Tiredness (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I of money in Spain (6)
9 Reviving, as with a
8 Travel on the piste (3)
10 Most uncanny (7)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
N L friendship (10) 11 Colourful ornamental
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
G F
14 Prefix meaning recent
or modern (3)
carp (3)
12 Barrier which contains
QUICK CROSSWORD 1 3 2 3 9 3
15 No longer fashionable (3) the flow of water (3)
5 7 8 9 6 8 6 9 SUDOKU         
17 Person in charge 13 Negative word (3)
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 Punter
SPORT TRADER CRICKET TRADING EXPERT OLLIE DREW LOOKS AT THE OPENING TEST BETWEEN ENGLAND AND PAKISTAN
England must beware
of Pakistan’s pace, but
can claim the first Test
ENGLAND
PAKISTAN
TODAY – 11.00AM SKY SPORTS 1
UNUSUALLY, England will host oppo-
nents that have played a Test series in
this country more recently than they
have when Pakistan head to Trent Bridge
today.
The visitors’ two matches against
Australia ended in a creditable 1-1 draw
which concluded on Saturday with a
three-wicket win over
Ricky Ponting’s men.
Having drawn compar-
isons to Wasim Akram,
including from the great
man himself, those fix-
tures at Lord’s and
Headingley brought the
name of 18-year-old
Mohammad Aamer to
wider attention after he
took a total of 11 wickets.
Seven of those came most
recently in Leeds where
the Aussies posted a mea-
gre 88 in their first
innings as Aamer claimed
3-20.
He looks a good buy at
RACING TRADER BILL ESDAILE’S TOP TIPS FROM GOODWOOD
T
HE highlight of today’s card at
Goodwood is the Group 2
Artemis Goodwood Cup
(3.25pm) where Aidan O’Brien
will be hoping AGE OF AQUARIUS
can step into Yeats’ rather large
hoofprints. His star stayer won this
race in 2008 and 2006, and the
new kid on the block should have a
great chance of adding to his sta-
ble’s fine record.
Age Of Aquarius was only beaten
a neck by compatriot Rite Of
Passage in the Ascot Gold Cup and
he should relish this drop back to 2
miles. John Dunlop’s Tactic is a dan-
ger, but I’m not sure he has the
scope of his market rival, while Kite
Wood has to carry a penalty and
Purple Moon was 6 lengths behind
INSIDER
the
M
any horses find Goodwood
very challenging and course
form should never be underes-
timated here. Glorious
Goodwood is also a severe test for
punters and the key is not having too
many bets. I will therefore restrict
myself to just one selection today, PIS-
CEAN in the closing 5 furlong handi-
cap at 5.45pm. He won well at
Sandown earlier this month, but three
25
| Sport
43 in Sporting Index’s bowling index. were world champions in 1992 and are
After a month on tour, he’s adapted to underdogs for the opener at 10/3 on
the conditions and proven his ability to Betdaq.
take wickets in this country against the Their batting line-up displayed a
highest quality of opposition. fragility against Australia which the likes
Alongside fellow paceman Mohammad of Stuart Broad and Graeme Swann can
Asif, Pakistan boast a fearsome new ball get stuck into on their home ground.
attack the Three Lions must beware of. England look the worthy favourites at
The duo were quick to strike against 5/6, and Andrew Strauss’ men are no bet-
Australia, claiming their first wicket for ter than 8/15 to win the series, just as
eight runs at Lord’s and for 20 at they did the last time the pair met in a
Headingley. In England’s last 10 games Test series here four years ago.
their average opening wicket stand has
been 27.3 runs. As such I’d recommend Pakistan's
Hills’ 5/6 for England’s opening partner- Mohammad Aamer
ship to be under 32.5 – just as seven of celebrates after
I GET
their previous 10 have been. trapping Australia's
With all due respect, Mitchell Johnson
back-to-back series against LBW
Bangladesh are hardly Test
matches at the sharp end Picture: ACTION
of international cricket. IMAGES
A £30
England recorded four
straight – and convincing
– wins at home and
abroad but Pakistan will
be far tougher.
Pakistan haven’t,
FREE BET.
though, won a Test series
in England since they
POINTERS...
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England opening partnership under 32.5 runs at 5/6 with William Hill
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O’Brien’s runner at Ascot. Illustrious 7/1 with William Hill. He has won
Blue loves this course and has an two of his last three races and was
each-way squeak at around 10/1. second in his maiden at Goodwood Bet
In today’s opener Sir Michael last season to Derby winner
CRICKET:
CRICKET: EENGLAND
NGLAND v PPAKISTAN
AKISTAN In-Play
Stoute should be back in the win- Workforce.
ner’s enclosure with LONDON Finally, don’t forget to have a few
STRIPE. He was only just beaten by quid on the Richard Hannon-trained First Test,
e Starts 11.00am, Live on Sky Sports.
Dandino in the King George V and Sir Alex Ferguson-owned PAU-
Stakes at Royal Ascot and the win- SANIAS in Saturday’s maiden at 8/11 England 11/4 Draw Pakistan 3/1
ner franked the form with a crack- 4.15pm. We’ve seen no signs of the
ing effort in the Gordon Stakes on Hannon juggernaut stopping at SERIES BETTING
Tuesday. This is the type of colt Goodwood and this impressive two-
Stoute excels with and he could well year-old did an electric piece of 4/11 England 9/2 Draw Pakistan 9/2
be a Group horse in the making. work alongside Zebedee last week.
The draw in tomorrow’s Totesport
Mile is crucial and a high berth is a POINTERS... SERIES SCORE
massive advantage. I was therefore LONDON STRIPE 2.10pm Goodwood (today) England Score Pakistan England Score Pakistan
delighted to see Ralph Beckett’s AGE OF AQUARIUS 3.25pm Goodwood (today)
OASIS DANCER handed stall 19 OASIS DANCER 3.25pm Goodwood (Friday) 16/1 1-0 33/1 10/1 4-0 100/1
and he is a great each-way bet at PAUSANIAS 4.15pm Goodwood (Saturday)
11/2 2-0 20/1 66/1 0-0 66/1
5/1 2-1 14/1 7/1 1-1 7/1
5/1 3-0 33/1 14/1 2-2 14/1
oddschecker.com
All the latest odds and £100s of bookie freebets
8/1 3-1 28/1
of his five career victories have come old prize in tomorrow’s Richmond
over this course and distance. Stakes (4.00pm) with LIBRANNO.
Tomorrow’s Totesport Mile is fierce- Oddschecker.com have just
ly competitive, but the draw always launched an iPhone racing app with
plays a big part and stall 21 is just loads of different functions. We’ve all
about perfect for WEBBOW. He fin-
ished fourth in this race last year and
seen Paul The Octopus out-do all the
World Cup tipsters, so it might be fun 0800 44 40 40 williamhill.com
will be running off a 3lb lower mark, so to have a go at the ‘Shake and Back’
looks great each-way value at around function, which randomly selects a g y
included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices subject to fluctuation. Prices correct as at 4.00pm yesterday.
16/1. I’ll also be backing Richard horse rather like a roulette wheel. The William Hill rules apply. Over 18s only. FOR ADVICE & INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK
Hannon to take another big two-year- app is available to download for free.
 Sport
26 CITYA.M. 29 JULY 2010

Results

Suarez 13
UEFA CHAMPIONS LEAGUE THIRD
QUALIFYING ROUND FIRST LEG
AIK....................................(0) 0 Rosenborg..........................(1) 1
Henriksen 33
Ajax...................................(1) 1 PAOK Salonika ...............(0) 1
Ivic 72
Forget Ashes, beat Pakistan
Aktobe ...........................(0) 1 Hapoel Tel-Aviv..............(0) 0
▲

Smakov 70 (pen) CRICKET

BATE.................................(0) 0 FC Copenhagen..............(0) 0 BY JON COUCH
Braga................................(1) 3 Celtic.....................................(0) 0
Alan 26 (pen) Att: 12,295 CAPTAIN Andrew Strauss has urged
Echiejile 76; Matheus 89 his England side to turn their atten-
Debrecen......................(0) 0 Basle.......................................(1) 2 tions away from the Ashes series and
Stocker 34; Xhaka 90 concentrate on beating Pakistan.
Partizan Belgrade ..(2) 3 HJK Helsinki ....................(0) 0
Iliev 8 Strauss’ side return to Test duty
Ilic 42; Cleo 90 after almost two months away when
Young Boys...................(1) 2 Fenerbahce.......................(2) 2 they host the Pakistanis in the first
Dudar 14 Belozoglu 5 match of a four-Test series at Trent
Costanzo 89 (pen) Stoch 38 Bridge, starting this morning.
FC Sheriff......................(1) 1 Dinamo Zagreb...............(1) 1
Erokhin 35 Sammir 3
The series is being billed as an indi-
cator of form as England plan the
FRIENDLY MATCHES
defence of their Ashes urn this winter.
AEK Athens....................... 2 Blackburn................................. 1
Bournemouth................... 0 Portsmouth ............................ 1 But with Pakistan themselves fresh
Burton Albion.................. 1 Derby........................................... 3 from a three-wicket win over
Cheltenham....................... 0 Bristol Rovers........................ 0 Australia at Headingley last week, the
Hendon ................................. 0 Brentford ................................. 1 talismanic Strauss has warned his
Lincoln City ....................... 0 Norwich..................................... 0 men not to take their foot off the gas
Rushden & D ..................... 0 Southend.................................. 0
Whitley Bay ...................... 1 Hartlepool................................ 1 by looking too far ahead.
Bromley................................ 0 Charlton .................................... 2 “It’s a big challenge,” he admitted.
Milton Keynes Dons .... 0 West Ham................................. 2 “We saw against Australia that the
ATHLETICS Pakistan side is a dangerous one full
EUROPEAN CHAMPIONSHIPS (Barcelona)— Finals Men, 100m: 1
of talent. They are used to the condi-
C Lemaitre (Fra) 10.11secs, 2 M Lewis-Francis (Gbr) 10.18, 3 M tions so we don’t have that to surprise
Mbandjock (Fra) 10.18. Also: 5 D Chambers (Gbr) 10.18. Hammer: 1 them.
L Charfreitag (Svk) 80.02m, 2 K Pars (Hun) 79.06, 3 N Vizzoni (Ita) “We are going to have to be at our Strauss says England must not look beyond this summer series with Pakistan. Picture: REUTERS
78.03. Women, 20km Walk: 1 O Kaniskina (Rus) 1hr 27mins best to win it and that’s a good thing
44secs, 2 A Kirdyapkina (Rus) 1:28:55, 3 V Sokolova (Rus) 1:29:32. for us, not only ahead of the Ashes but “All we can do is play well in the rounder Tim Bresnan to the12-man “It’s disappointing,” the skipper
Also: 10 J Jackson (Gbr) 1:33:33. 10000m: 1 E Abeylegesse (Tur)
31mins 10.23secs, 2 I Abitova (Rus) 31:22.83, 3 J Augusto (Por) generally because we want to play at series, win the series and go from this squad after an ankle injury forced admitted. “He’s gone away to under-
31:25.77. Long Jump: 1 I Radevica (Lat) 6.92m, 2 N Gomes (Por) our best and hopefully beat the best. series to Australia with a lot of confi- seamer Ajmal Shahzad to pull out. go further treatment and we hope
6.92, 3 O Kucherenko (Rus). Discus: 1 S Perkovic (Cro) 64.67m, 2 N “In some ways it’s a precursor dence. We’ve been waiting for it for a Strauss, however, says Shahzad’s he’ll be OK for the second Test.”
Grasu (Rom) 63.48, 3 J Wisniewska (Pol) 62.37. because there’s a lot of attention little bit now, it’s probably a step up withdrawal was purely a precaution Batsman Kevin Pietersen also suf-
CRICKET towards the Ashes and we can under- from Bangladesh and that’s what we and expects the Yorkshire pace man fered a scare when he tripped over a
SECOND TEST MATCH (Colombo); Sri Lanka 642-4 dec. (K C stand that. [But] it’s wrong to look at need.” to return for the second Test at ball during the warm-up, but he
Sangakkara 219, M Jayawardene 174, N T Paranavitana 100, any series and look beyond it. England yesterday recalled all- Edgbaston next week. escaped unhurt.
T T Samaraweera 76no, T M Dilshan 54) v India 382-4 (108.0
overs) (G Gambhir 99, M K Vijay 58).

Time for England to stake their claim

SECOND UNDER 19 TEST MATCH: Sri Lanka 317 (K
Karunanayake 90, P M Best 5-53) v England 223-6 (73.3 overs) (J
Manuel 57, L W P Wells 54, K P C M Peries 4-58).

TODAY’S DIARY
(Football 7.45pm unless stated)
UEFA EUROPA LEAGUE Third Qualifying Round First Leg
Aalesund v Motherwell (6pm) ..............................................................................
Maribor v Hibernian (7.30)...................................................................................... Pakistan for the first Test, starting just what a talented side they are. here to reclaim his status as a world-
Maritimo v Bangor City............................................................................................ today. They were swinging the ball through class batsman.
Rabotnicki Kometal v Liverpool ............................................................................ Of the 15 or so players in con- hoops in the English conditions and It’s a big series also for the ultra-tal-
Shamrock Rovers v Juventus ................................................................................ tention for a Test squad place, I’d say made the world sit up and notice ented Eoin Morgan as he looks to
Women’s World Cup Qualifier only three, captain Andrew Strauss, when bowling Ricky Ponting’s men cement his place in the five-day set-
England v Turkey (7pm)............................................................................................
Friendly Matches: Club America v Man City (1pm), MLS All-Stars v Graeme Swann and Stuart Broad, are out for 88 on the first day of the sec- up. Morgan has been given his chance
Man Utd (1.30), Wycombe v Chelsea, Tottenham v Villarreal (8pm). guaranteed a start for the first Ashes ond Test. by Ian Bell’s injury and will be look-
CRICKET Test this winter. In youngster Mohammad Aamir ing to grab it with both hands to
First Test Match—day 1 of 5: England v Pakistan (Trent AT THE CREASE WITH The rest, whether they be new and Mohammad Asif, Pakistan have show the world he’s not a one-trick
faces or a few of the old guard look- stumbled across a feared fast bowling pony.
Bridge).
LV County Championship - Division One—day 1 of 4: Somerset
v Nottinghamshire (Taunton), Hampshire v Lancashire (The
ANDY LLOYD ing to put a few things right, will be attack, who will present the likes of The selectors are also looking for-
giving it their all against the Kevin Pietersen and Alastair Cook ward to unleashing 6ft 7in pace man
Rose Bowl), Kent v Essex (Canterbury). Division Two—day 1

T
of 4: Middlesex v Surrey (Lord’s), Worcestershire v OURING Australia in an Ashes
Northamptonshire (New Road), Leics v Sussex (Grace Road). series is every young English
Clydesdale Bank 40 - Group B: Gloucs v Yorks (Cheltenham). cricketer’s dream and you can
be sure it will rest in the back of
SPORTS EDITOR JON COUCH the players’ minds when they line up
email sport@cityam.com for the summer series against
Pakistanis to book their place on the
plane Down Under.
FEARED
But it won’t be easy. Pakistan showed
in their recent series with Australia
with a few problems in their quest for
some much-needed runs.
It’s been a long time since
Pietersen, in particular, played a dom-
inant, match-winning innings for
England, and he needs a big series
Steven Finn on the Pakistanis this
summer.
Finn is recognised as a huge talent
in the Steve Harmison mould but so
far has been kept under wraps. This
could well be his stage.

SPORT | IN BRIEF
Contador quits team Astana his deal at Arsenal ran out at the end of
Drogba’s staying and we are
ready to spend, say Chelsea
CYCLING: Tour de France winner Alberto the season.
Contador is to leave Astana at the end of Campbell said: “I’d like to thank Chris
the season. Hughton for putting his faith in me and
The Spaniard, who has won two of his aim to repay him and the supporters by
three Tours in Astana colours, rejected giving everything I possibly can to help
the team’s offer to extend his contract, re-establish this great club in the top tier
admitting he was considering offers else- of English football.”
where. Gourlay yesterday dismissed any few days in a deal that could be worth
▲

FOOTBALL
A representative of Contador said: Tendulkar leads India charge BY FRANK DALLERES prospect of the Premier League cham- as much as £20m.
“The position of both parties was not so CRICKET: Sachin Tendulkar smashed his pions selling their top scorer, who has Besides that, however, the club
far from each other, but the team want- 48th Test century to lead the India CHELSEA have attempted to nail spec- two years left on his current contract. have been quiet in the transfer mar-
ed to know [whether he would renew his recovery in the second Test against Sri ulation linking Didier Drogba with a “Didier will be a Chelsea player ket, with the £5m purchase of Yossi
deal]. Alberto Contador has rejected the Lanka. move away by categorically declaring next year,” said Gourlay. “Didier is Benayoun’s from Liverpool their only
ultimatum of Astana.” Chasing 624-4dec, India battled to the striker will remain at Stamford under contract. The thing about this senior signing.
382-4 at the close, thanks to 108 not out Bridge next season. time of year is we always get [this]. For But Gourlay said: “If Carlo wants to
Campbell seals Newcastle move from Tendulkar, including an unbroken Drogba’s agent revealed earlier this our players to be in the news – it’s bring a player or two into the squad
FOOTBALL: Sol Campbell has set his stand of 141 with debutant Suresh Raina, month that Manchester City had normal. But Didier Drogba will be a then we will look at that. It has to be
sights on restoring Newcastle to their who added 66no. made contact over a transfer, and Chelsea player next year.” the right player to fit into the squad
former glories after joining the club on a Virender Sehwag earlier fell to Suraj hinted that the Ivory Coast star could Brazil’s World Cup midfielder and obviously at the right price. If
one-year deal yesterday. Randiv, just one run short of a 21st Test be tempted by a move to Eastlands. Ramires, of Benfica, is expected to these things all come together then
The 35-year-old was a free agent after century. But Chelsea chief executive Ron arrive at Stamford Bridge in the next fine, we’ll strengthen the squad.”
CITYA.M. 29 JULY 2010 Sport 27

Cliffs hangs on to
deliver Hannon a
Goodwood double
by Richard Hughes, showed his class again

▲
GLORIOUS GOODWOOD
BY JON COUCH here with a masterful ride as he stalked
Ryan Moore on Rip Van Winkle in pursuit
RICHARD HANNON’S sensational season of pacemaker Encompassing.
continued with a dream double on a Moore looked to have stolen a yard on
thrilling second day of Glorious his rival as they turned into the straight
Goodwood yesterday. before Canford Cliffs showed a tremen-
The Marlborough-based trainer cel- dous turn of pace to win by a neck.
ebrated victory in the big race of the “He’s a superstar,” Hughes said.
day, the Sussex Stakes, after odds-on “Rip Van Winkle nicked a length
favourite Canford Cliffs squeezed out of me, but I know how good he
past last year’s winner Rip Van is. My horse pricked his ears in the
Winkle in a nail-biting finish. last 100 yards and was in com-
And it was to get better for mand.” Hannon added: “If we can
Hannon when King Torus ran out keep him then I think he will be
an impressive six-length winner in an awesome horse next year.”
the Veuve Clicquot Vintage Stakes. King Torus, the 11-4 shot,
Since being eclipsed in the kicked away from front-runner
Guineas at Newmarket, Canford Stentorian on the final straight to
Cliffs, right, has triumphed in both give the Hannon/Hughes team
Lewis-Francis (left) took second place behind France’s Lemaitre but Chambers (right) was a disappointing fifth. Picture: GETTY the Irish equivalent and in the St back-to-back wins with 6-4
James’s Palace Stakes at Royal Ascot. favourite Crown Prosecutor

Lewis-Francis silver
And the Tagula colt, ridden as ever third.

| PROMOTION

upstages Chambers Emirates Stadium is once again playing host to the Emirates
Cup, being held on the weekend of Saturday 31st July

Win
and Sunday 1st August, and we’ve teamed up with
Arsenal to offer one lucky reader the chance to win
a pair of premium Club Level tickets to both days of
this high profile pre-season tournament.
British sprinting, handed second now trained by Linford Christie. “I
▲

ATHLETICS Joining Arsenal at Emirates Cup 2010 will be

BY FRANK DALLERES
BRITAIN’S Mark Lewis-Francis
snatched a shock silver and
upstaged team-mate Dwain
Chambers as rising French star
Christophe Lemaitre stormed to
100m gold at the European
Championships in Barcelona.
Lemaitre, 20, who last month
became the first white man to
break the 10-second barrier, pro-
duced a blistering final 30m to fin-
ish in 10.11 seconds, with
Lewis-Francis and Chambers
among a group of four who record-
ed the same time of 10.18.
The photo finish saw Lewis-
Francis, the forgotten man of
place but Chambers, who arrived
as one of the favourites and led for
part of the race, ended a hugely dis-
appointing fifth.
Another Frenchman, Martial
Mbandjock, took bronze, while
defending champion Francis
Obikwelu, of Portugal was fourth.
Lewis-Francis, 27, lost his lottery
funding last year after failing to
recover top form following injury,
was only named in the team last
week and scraped into the final as
one of the fastest third-place finish-
ers in the semi-finals.
“I got to the final on a lucky star
and I got to these championships
on a lucky star,” said the 2004
Olympic 4x100 gold medal winner,
think 2010 is my year I am the hap-
piest man in the world. I said I’d
take fourth place before the final
and I ended up with second.”
Chambers had longed for gold,
having lost his prize for winning at
the 2002 European Championship
after admitting to doping. At 32, he
now looks unlikely to win a major
international outdoor medal.
“You can’t win them all. I just
did the best I could,” said
Chambers. “Sometimes you win
and sometimes you lose but I’m
happy for Mark.”
Earlier British pair Martyn
Rooney and Michael Bingham
booked their places in tomorrow’s
400m final.
Italian powerhouse AC Milan, Scottish giants Celtic, TICKETS TO SEE
and leading French club Lyon. Arsenal line-up against ARSENAL AT
AC Milan on the Saturday (kick off 4.20pm) and then EMIRATES CUP
bring the tournament to an exciting finish by playing 2010
Celtic on the Sunday (kick off 4.20pm).
The Emirates Cup will not only offer many fans with a first opportunity to see the Gunners
play ahead of the 2010/2011 season, but the chance to see two high quality matches each
day, with some of the world’s finest players on show.
To be in with the chance of winning, simply answer the following question:
Who is the current manager of Arsenal Football Club?
A B C
George Graham Arsène Wenger Bruce Rioch
Send your answer and contact number to lucky@cityam.com

Hammers chief snubs £7m Parker The competition prize is for tickets only and does not include transport to and from Emirates
Cup 2010.

For further information on tickets for Emirates Cup 2010, please visit
bid and pledges to keep Spurs target www.arsenal.com/emiratescup or call 0844 277 3625.

That did not stop Tottenham man-

Hughes poised to
▲

FOOTBALL
BY FRANK DALLERES
WEST HAM chairman David
Sullivan has told Tottenham that
no amount of money would tempt
them to sell Scott Parker, after
rejecting a £7m bid for the
England midfielder.
Parker’s form has been outstand-
ing for the Hammers since arriving
from Newcastle three years ago,
winning their player of the season
award for the past two years and
earning a call-up to Fabio Capello’s
initial World Cup squad.
So popular is he with fans that
Sullivan named him as the one
player the debt-ridden east London
club would not consider selling.
ager Harry Redknapp trying his
luck with an offer for the 29-year-
old, but Sullivan has dismissed the
bid and warned Spurs not to both-
er continuing their chase.
“I made a promise that I would
not sell Scott and I will not, for any
amount of money, break that
promise to the West Ham support-
ers,” said the club’s co-owner.
“Scott is not for sale at any price,
to anyone. West Ham supporters,
for far too long, have had owners
that sell their best players and
promise one thing and do another.
“This is a new era. We are build-
ing a bigger, better West Ham and
when we make a promise, we hon-
our it.”
take Fulham job
FULHAM are today expected to
confirm the appointment of Mark
Hughes as manager.
Former Manchester City boss
Hughes is thought to have been
preferred to ex-England coach
Sven-Goran Eriksson.
The Cottagers have moved Terms & Conditions: The prize is a pair of Club Level tickets to both days of the Emirates Cup on 31st July and 1st August 2010. Tickets
quickly to capture Hughes, who are not for resale and no cash alternative offered. The promoter is Arsenal Football Club and the promoter reserves the right to change
was sacked by City in December, the prize to one of equivalent or greater value without notice. Entry in to the promotion is free and no purchase is necessary, entrants
must be aged 18 and over. Travel expenses and accommodation are not included. The closing date is 29th July 2010 at 11:59pm. The
after their No1 target, Martin Jol, winner will be drawn at random from all the correct entries and will be notified on 30th July 2010. By entering the promotion you agree
decided to stay at Ajax. to receive further information and similar promotions from City A.M. If you wish not to receive any further information please add ‘No’
after your answer. The winners, by accepting the prize, agree to publicity if required. The Editor’s decision is final.
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