BUSINESS WITH PERSONALITY

BEAT THE SUMMER RSA TURNS

UP THE HEAT
HOLIDAY JET LAG AVIVA FACES
SHAREHOLDER IRE
IN TODAY’S HEALTH SECTION P16 OVER OFFER P3
Issue 1,200 Tuesday 17 August 2010 www.cityam.com FREE

Wall Street
PAY DEAL AVERTS fumes over
GM fee cut
BAA STRIKE PAIN
▲
BANKING
BY OLIVER SHAH AND MARION DAKERS
WALL STREET has been left fuming
INDUSTRIAL after an exceptionally cheap pitch
▲

BY OLIVER SHAH from Goldman Sachs led the US

FEARS of travel chaos over the busy
Bank Holiday faded last night after
airport operator BAA secured a last-
ditch pay deal with unions, who
agreed to call off planned strikes.
In a dramatic climbdown, Unite
said it would urge workers at
Heathrow, Stansted, Southampton,
Glasgow, Edinburgh and Aberdeen
airports to accept a “much improved”
pay offer from BAA rather than go
ahead with industrial action. The
breakthrough came after eight hours
of talks between union representa-
tives, led by Unite’s Brian Boyd, and
BAA executives led by Terry Morgan.
Neither side would confirm details
of the salary hike offered to airport
staff. But the package will be far in
excess of the one per cent rise previ-
ously tabled by BAA.
Boyd said union members would
be informed of the deal today and
would vote on it in the next few
weeks. Speaking outside the head-
quarters of conciliation service Acas,
he said: “Unite came to these negotia-
tions with a strong mandate for
industrial action… [but] we are
pleased to announce we are calling
off strike action at BAA’s six airports.”
BAA said the parties had reached
an agreement “that is fair to staff but
which also reflects the difficult eco-
nomic climate”.
Unite’s Brian Boyd (l) and BAA’s Terry Morgan hammered out an agreement late last night
Unions had planned to strike as
early as next Monday to express their
anger at a below-inflation pay rise
and changes to working conditions.
Because many of the unionised work-
ers are firemen and security guards
the action would have closed airports,
disrupting up to 2,500 flights and
troubling 350,000 travellers every day.
BAA originally insisted a one per
cent salary increase reflected the
pressures of the recession and the
£36m cost of the Icelandic volcanic
ash clouds. But the company’s nego-
tiators softened in the face of further
multi-million pound losses.
The deal means the potentially dev-
astating impact of a BAA staff strike
coinciding with action by British
Airways cabin crew will almost cer-
tainly be avoided.
Peter Harwood, chief conciliator at
Acas, said the talks had been “chal-
lenging” but said Unite, together
Pictures: REUTERS, PHOTOSHOT
with the Prospect and Public and
Commercial Services unions, would
press its members to accept the olive
branch from BAA.
“Acas is pleased at this develop-
ment and hope that the matter will
soon be settled,” he added.
BAA, owned by Spanish giant
Ferrovial, last faced the prospect of
industrial action in 2008. In that case,
an 11th-hour arrangement on pen-
sions averted a series of strikes.
Treasury to slash fees for all banking
advisers on its impending $20bn
(£13bn) flotation of General Motors.
Goldman, which was mired in alle-
gations of securities fraud when it
applied for a role in the GM initial
public offering (IPO) in May, offered to
work for a fee of 0.75 per cent – far
below the three per cent usually
charged by corporate finance houses.
Goldman was desperate to secure an
underwriting position despite the
scandal surrounding the Security and
Exchange Commission (SEC)’s case
against trader Fabrice Tourre.
The US government forced other
banks to match Goldman’s challenge,
reducing their potential haul from
$600m to $150m and sparking irrita-
tion among senior dealmakers.
Among those affected are lead man-
agers JPMorgan, Morgan Stanley,
Bank of America and Citigroup.
Goldman eventually landed a less
prominent place in the IPO line-up
along with Credit Suisse.
Jacob Frenkel, a lawyer at
Maryland-based Shulman Rogers, told
City A.M.: “This comes down to the
fundamental premise that industry
leaders set prevailing market prices.”
GM is expected to file its IPO
prospectus with the SEC as early as
this morning after making tweaks to
take into account the surprise depar-
ture of chief executive Ed Whitacre.

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 2 News CITYA.M. 17 AUGUST 2010

Reflections on the Philip Green saga NEWS | IN BRIEF

DEPUTY EDITOR’S LETTER
DAVID HELLIER
MY first contact with Sir Philip Green
came around two decades ago when
he was running a small public compa-
ny called Amber Day.
I had written a two paragraph story
for the Independent newspaper
which provoked the retailing tycoon
to scream down the phone at me the
following day.
“I cut out your article out and put
it under my cat’s arse, which is where
it firmly belongs,” Sir Philip, then just
plain old Philip, bellowed at me, pep-
pering his further comments with
plenty of expletives.
I watched and reported with inter-
est as Amber Day failed and Sir Philip
retreated from the public company
arena and then watched again with
admiration as the retailing tycoon
built up an incredible empire, includ-
ing Bhs and Top Shop.
As the years went by Sir Philip
joined the top ranks of British busi-
ness. He tried and failed to take over
Marks & Spencer but in doing so he
instructed the country’s best advisers,
including the top financial relations
firm Finsbury and bankers Merrill
Lynch. Then, under the Labour
administration, this swashbuckling
entrepreneur with a no-nonsense
approach to management, was
knighted.
That he should have been appoint-
ed by the government to look at mak-
ing cuts in public expenditure does
not come as a total surprise. Sir
Philip’s talents in running his retail
empire will no doubt bring some ben-
efits to some areas of government
procurement and there will be jobs
that he will no doubt be able to dis-
pense with.
What does surprise is Sir Philip’s
naive belief that in accepting the job
he would not be subjected to ques-
tions about his family’s tax arrange-
ments. One might have every
sympathy for Sir Philip and others
like him, such as Terra Firma’s Guy
Hands, who either reside overseas or
have family overseas for tax reasons.
Such businessmen and countless
hedge fund managers and successful
City figures are fed up with what they
consider to be a punitive tax system.
But it can not have escaped Sir
Philip, or the government’s advisers,
that in Vince Cable, the coalition has
a business secretary who believes in
making those who can afford it pay
more. As Cable told us over the week-
end: “I remain of the general view
that British businesspeople should
pay their taxes in Britain.”
Sir Philip would no doubt reply
that he does pay UK tax, but his wife,
who has received a large dividend in
the past, lives in Monaco and doesn’t.
In asking Sir Philip about his tax
affairs in the context of Cable’s stated
position, CityA.M. upset the entrepre-
neur who has broken off relations.
We are not the first newspaper to
reach this state of affairs with him
and clearly won’t be the last.
But it is a shame the government’s
latest appointee feels this way. In pri-
vate Sir Philip has interesting
thoughts on the kind of tax condi-
tions that might allow his family and
others to return to the UK, and he
could no doubt enrich the debate.
Increasing tax revenue would bring
the budget deficit down just as much
as cutting expenditure, and if that
means reducing the rates of capital
gains tax or income tax bands then
that discussion needs to take place.
Maybe Sir Philip will be calm enough
to discuss such issues when he meets
Cable on the business secretary’s
return from holiday.
david.hellier@cityam.com
Allister Heath is away.
Citi blocked in $75m SEC payoff
Citigroup’s $75m (£48m) settlement
with the US Securities and Exchange
Commission over its alleged failure to
disclose up to $40bn in sub-prime secu-
rities has hit an obstacle after a federal
judge refused to approve the payment.
US district judge Ellen Segal Huvelle
said she did not have “sufficient infor-
mation” to green-light the deal. The SEC
accused Citi of misleading investors by
failing to be clear on the full extent of its
exposure to low grade mortgage-backed
securities in conference calls in 2007.
BP gets $5bn loans on oil sales
Beleaguered energy giant BP has
secured $5bn (£3.2bn) fresh financing
by securing debt against its revenues
from oil sales for the first time. It is
understood the debt will be used to ease
BP’s general liquidity position rather
than to fund the $20bn escrow account
set up to pay for damages caused by its
gargantuan oil spill off the coast of
Louisiana in the US. BP said the loans
created “further flexibility for BP as an
alternative form of financing in addition
to its more conventional debt financing
such as corporate lending”.

7th Floor, Centurion House,

24 Monument Street,
London, EC3R 8AJ
EC rules to hit
UK companies
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
REGULATION capital, whereby funds in an entity
▲

Associate Editor David Crow

Lifestyle Editor Zoe Strimpel BY OLIVER SHAH are used to calculate the capital Sir Alan Budd said the episode has damaged the OBR’s reputation Picture: REUTERS
Art Director Darren Soulsby strength of both the entity and its

Sir Alan Budd regrets leak

Pictures Alex Ridley INSTITUTIONS including Lloyds parent company. They are also intend-
Banking Group and Royal Bank of ed to make it simpler for regulators to
Commercial Scotland will be hit by an overhaul of spot risks hiding in complex group
Sales Director Jeremy Slattery European rules giving regulators structures and holding companies.
Commercial Director Harry Owen greater powers over combined bank- The EC, led by José Manuel Barroso,
Head of Distribution Nick Owen ing and insurance groups. said the rules would remedy “unin-
The European Commission (EC) yes- tended loopholes identified in the POLITICS decision to rush out official figures to
▲

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editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
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Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
terday put forward plans to tighten
oversight of “financial conglomer-
ates”, defined as firms that lend and
provide cover across multiple
European states. As well as taxpayer-
backed Lloyds and RBS, Barclays,
HSBC, Old Mutual, Prudential and
Standard Life are among those who
fall into the category in the UK.
The revised measures are designed
to help national watchdogs such as
the Financial Services Authority (FSA)
clamp down on the multiple use of
context of the financial crisis”. The
Commission aims to pass its propos-
als into law by the start of 2011, after
discussions with European Union
member states .
The EC, led by José
Manuel Barroso, wants
to tighten regulation of
large financial compa-
nies following the crisis
BY DAVID CROW
SIR Alan Budd, the former head of
the Office for Budget Responsibility
(OBR), yesterday admitted he regret-
ted the impact of a leak that dogged
his short tenure at the independent
fiscal forecaster.
“I enormously regret the effect it
had on our reputation… That was in
some sense the most harmful event
in terms of the press coverage,” Sir
Alan admitted, in reference to his
counter an inaccurate leak.
The timing allowed David
Cameron to use the figures as ammu-
nition in a tetchy exchange of Prime
Minister’s questions, leading to ques-
tions over the OBR’s impartiality.
Sir Alan, who stood down from the
OBR last week, also admitted there
was a possibility of a double dip reces-
sion, but said it was unlikely. “You
cannot rule it out... but the most like-
ly outcome is that the economy will
continue to grow,” he said.

WHAT THE OTHER PAPERS SAY THIS MORNING

TOUGH TARGETS FOR
REFORMS
The Treasury has required Iain
Duncan Smith, work and pensions
secretary, to find about £5 of savings
for every £1 he spends to simplify the
benefits system, setting tight finan-
cial conditions on dramatic reforms.
The fiscal parameters mark an
uneasy truce in a cabinet row that
gives Mr Duncan Smith some room to
manoeuvre but leaves a tense final
negotiation ahead.
RESURGENCE OF CONTROVERSIAL
HEDGE FUND STRATEGY
Fixed-income relative value trading,
the hedge fund strategy pioneered –
and made notorious – by Long Term
Capital Management is returning to
prominence amid one of its most suc-
cessful years, aided in large part by
the massive issuance of bonds by the
UK government and other sovereigns.
SANTANDER AND M&T REKINDLE US
TALKS
Santander has rekindled talks in
BENEFIT recent weeks with M&T Bank over a
merger of the US operations of the
Spanish lender with the regional
bank based in Buffalo, New York. The
talks about combining Santander’s
US unit, known as Sovereign, with
M&T had collapsed in May, within
weeks of a planned announcement.
Discussions faltered over which bank
would control the enlarged business.
CHEYNE CAPITAL POISED TO SHAKE UP
MORTGAGE FUND
Cheyne Capital, one of London’s most
prominent credit hedge funds, is
poised to reorganise its listed vehicle
Queen’s Walk Investment, which was
an early victim of the global housing
slump when it hit in 2007. Losses at
the fund, which specialised in invest-
ing in complex mortgage assets, pre-
saged the collapse of Northern Rock
and the spread of problems in the US
subprime housing market to the UK.
BOA MAY REDUCE ITS HOLDING IN
BLACKROCK
Bank of America is considering reduc-
ing its 34 per cent holding in
BlackRock, the New York-based invest-
ment fund. The bank acquired its
holding in the world’s largest asset
manager last year through its acquisi-
tion of Merrill Lynch and has always
regarded it as an investment, rather
than a core asset.
INVESTORS SCORE AS SKS BETS ON
THE POOR
SKS Microfinance gained as much as
18 per cent in its trading debut in
Mumbai today as investors bet that
tiny loans extended to some of the
world’s poorest people can deliver
huge profits. Shareholders in the
Indian microlender backed by
George Soros were handed a paper
profit of as much as $288m.
COST OF WINDING UP LEHMAN
BROTHERS NOW CLOSE TO $1BN
The cost of winding up failed US bank
Lehman Brothers is close to hitting
$1bn after advisers working on the
bankruptcy clocked up another
$44.5m in fees last month. Overall,
Alvarez & Marshall, the restructuring
specialists, have charged $326m in
fees for “interim management”,
according to recent figures filed with
the Securities & Exchange
Commission for 22 months’ work.
PETROL RETAILERS URGE COALITION
GOVERNMENT TO TACKLE FUEL PRICES
Petrol retailers have fired a “warning
shot” to the coalition Government to
stick to pre-election pledges over ris-
ing road fuel prices. RMI Independent
Petrol Retailers Association has writ-
ten to the Prime Minister asking him
to “urgently” set up a working party of
Government and industry.
INTEL TO BUY TI UNIT
Intel says it’s buying a Texas
Instruments unit that makes cable
modem chips, which it intends to
combine with its own processors for
smarter modems and cable set-top
boxes. The companies did not reveal
the terms of the deal in the
announcement yesterday.
WEALTH MANAGERS TARGET SPORT
STARS
The huge influx of money into profes-
sional sport has created a niche but
growing market for private banks
and wealth managers, keen to pro-
vide advice to athletes on how to pre-
serve the wealth they create in often
short careers. These specialist sports
divisions of wealth managers aim to
help their clients avoid the pitfalls of
having too much money at too young
an age — but they face increasingly
tough competition.
CITYA.M. 17 AUGUST 2010 News 3

Video streaming site Hulu

sounds out $2bn flotation
launched to combat the prevalence of rumour or speculation.”
▲

MEDIA
BY STEVE DINNEEN
ONLINE video site Hulu could
become the biggest internet IPO of
the year after its owners began sound-
ing out the market for a potential
$2bn (£1.3bn) listing yesterday.
The joint venture between Disney,
News Corp, NBC Universal, who all
own 27 per cent of the firm, and
Providence Equity Partners, was
piracy on sites such as YouTube. The
US-based firm is a rival to video
screening sites such as Apple TV and
Netflix. Industry sources say the
media giants are raising the cash to
further extend the reaches of the site,
which is known for screening hit
shows such as Family Guy and Glee
before its rivals.
A Hulu spokesman told City A.M.:
“We do not comment on market
Hulu is second only to YouTube in
terms of unique users in the US but
still trails far behind its Google-
owned rival. However, it pushes
almost twice the number of adverts
and reportedly hit revenues of
around $100m last year.
The video streaming industry is
rapidly expanding as studios seek
alternative revenue streams in the
face of internet piracy. America’s Got Talent is one of the shows screened on Hulu Picture: REX

Aviva told to
deliver or see
itself split up
London Asset Management, are
▲

INSURANCE
BY OLIVER SHAH
INVESTORS piled pressure on Aviva to
come up with a credible alternative
to being broken up yesterday as the
insurer formally knocked back rival
RSA’s “unacceptable” £5bn approach
for its general insurance business.
Shareholders are disgruntled at
Aviva’s decision not to consult them
before rejecting the offer for the
group’s property and casualty opera-
tions in the UK, Ireland and Canada.
RSA’s interest has stirred up long-
standing frustration at Aviva’s inabil-
ity to close the gap between its
embedded value and share price.
Euan Stirling at Standard Life
Investments (SLI), which owns shares
in both FTSE 100 firms, broke cover to
say: “If RSA were to come back with a
more serious bid, Aviva would have to
take that more seriously and who
knows what happens beyond that.
Maybe the cat’s out of the bag then.”
Another institutional investor told
City A.M.: “The main result of the bid
is to raise questions over whether
Aviva could be split up and become
an acquisition target.”
Investors, led by SLI and Royal
demanding action to stimulate
Aviva’s value if the board continues to
refuse talks with RSA.
Their calls came as RSA issued an
aggressive statement accusing Aviva’s
management of squeezing a poor
return on equity from the business
since chief executive Andrew Moss
took over in 2006. RSA said its offer
was “fair” at 9.8 times 2010 earnings.
Aviva retorted by arguing RSA was
trying to buy its general insurance
arm at a low point in the cycle. RSA’s
offer was “unacceptable and not in
the best interests of shareholders”.
Shares in Aviva ended 2.5 per cent
down at 377.9p. Shares in RSA closed
down 2.3 per cent at 124.5p.
ANALYSIS l Aviva
p
377.90
16 Aug
380
340
300
17 May 7 Jun 25 Jun 15 Jul 4 Aug

Air of unlikelihood fades

RSA’S offer was politely described as
“speculative” when it was leaked on
Friday. In fact, it looked downright
odd: a £5bn proposal, made out of
the blue from one chairman to
another, swiftly rebuffed.
But no-one in Aviva’s boardroom
will be feeling comfortable this
morning. RSA has skilfully turned
the nascent takeover battle into a
referendum on Aviva executives’
chances of unlocking serious value
from the business.
RSA’s timing is opportune. Aviva
boss Andrew Moss conspicuously
dropped the second half of his “One
Aviva, twice the value” slogan at
this month’s results. Aviva shares
are down around five per cent since
January and trade at a 28 per cent
discount to embedded value.
Moss’ strategy of focusing on cap-
ital and cash is slowly beginning to
bear fruit. First-half IFRS operating
profits were 21 per cent up at
£1.3bn and capital generation is
expected to reach £1.5bn this year.
Earnings per share came in at
38.8p, the best level in three years,
and bullish analysts expect a rapid
take-off as the cycle turns.
But with shareholders’ patience
wearing thin and RSA looking
determined, this story could run.
BOTTOMLINE
Analysis by Oliver Shah
 4 News
Dell to buy 3PAR for $1.5bn
TECHNOLOGY
▲
BY HARRY BANKS
DELL plans to buy data storage com-
pany 3PAR for $1.15bn (£730m) in
cash, expanding its cloud computing
business to compete with other tech-
nology services companies like IBM.
Dell said it would pay $18 a share
for 3PAR, an 87 per cent premium
over Friday’s closing price. The deal
would further expand Dell’s presence
in technology services, a business
that often yields higher profit mar-
gins than personal computers but is
NatWest 3 put
the spotlight
on extradition
LEGAL
▲
BY VICTORIA BATES
LAWYERS have warned that the spirit-
ed defence mounted by two of the
“NatWest Three” against their prose-
cution in the US should act as an eye-
opener for the government ahead of a
planned review of extradition policy.
David Bermingham and Gary
Mulgrew, two of the former NatWest
bankers convicted two years ago of
cooking up an Enron-related fraud
scam, have now revoked their guilty
pleas in a sensational video posted on
the internet at Ungagged.net, a web-
site designed to catalogue “prosecuto-
rial abuse” in the Enron case.
The pair accuse US prosecutors of
subjecting them to a form of “torture”
by delaying the trial and keeping
them from their families in the UK.
Legal experts said the case was yet
another example of the importance
of a thorough review of the UK’s
Extradition Act, which is expected to
be launched by the coalition govern-
ment within weeks of politicians
increasingly competitive.
IBM has been expanding its services
business, as have other rivals like
Hewlett-Packard and Oracle. They have
also been stepping up investment in
cloud computing, which enables users
to access data and software over the
internet without needing to download
information.
Dell, which bought technology
services company Perot Systems last
year for $3.9bn, said 3PAR’s technolo-
gy would help customers reduce data
management costs, including hard-
ware and energy consumption.
returning from the summer recess.
Anand Doobay, an extradition
expert at Peters & Peters, said: “This
case is symptomatic of a wider issue
with the extradition treaty between
the UK and the US. There have been a
number of other controversial cases
and if the issues are not tackled head
on then this is likely to continue.”
Keystone Law solicitor Mark
Spragg, who acted for the NatWest
Three before they were extradited in
2005, attacked the current arrange-
ments between the US and UK.
“At no stage of the process would
anyone in England have the power to
decide if an offence has even been
committed by the defendant,” he told
City A.M. “But if it is the other way
round, we have to show reasonable
cause. It is very, very one-sided.”
A Home Office spokesman said the
government is “committed to a
review of the Extradition Act and is
giving careful consideration to the
UK’s extradition arrangements to
ensure they operate effectively and in
the interests of justice”.
CITYA.M. 17 AUGUST 2010
Barclays pays £190m to
Dell will integrate 3PAR’s products
settle US sanctions case
into an existing storage portfolio.
ANALYSIS l Dell involving $500m from 1995 until
▲
BANKING
$ September 2006, according to the doc-
15 11.93 BARCLAYS Bank has agreed to pay uments.
16 Aug
$298m (£190m) to settle criminal Barclays and US prosecutors entered
14
charges that it violated US sanctions in into a deferred prosecution agreement
dealings with Cuba, Iran, Libya, Sudan that lasts 24 months. A federal judge
and Myanmar, according to US court still must approve the agreement.
13 documents filed yesterday. Barclays voluntarily disclosed some
The bank was charged with violat- of the prohibited transactions to US
12 ing the International Emergency authorities and agreed to cooperate
Economic Powers Act and the Trading fully, according to the documents filed
17 May 7 Jun 25 Jun 16 Jul 5 Aug with the Enemy Act in its dealings in Washington.
H&M CHEERS SALES RISE NEWS | IN BRIEF
Hunting snaps up Innova-Extel
International energy services group
Hunting is to acquire Innova-Extel
Acquisition Holdings for $125m (£80m)
by the end of the month. Innova-Extel is
a supplier of harsh environment elec-
tronics technology to the energy indus-
try, and the acquisition will boost
Hunting’s offering in directional drilling,
a practice which has become more com-
mon in the industry. It said the acquisi-
tion from American Capital is subject to
certain conditions, but is expected to be
earnings enhancing in 2010.
Shire in drug withdrawal threat
US health officials have for the first time
proposed withdrawing approval of a
prescription drug for the manufacturer’s
failure to complete required studies
after the medicine reached the market.
Shire did not conduct clinical trials to
verify the suggested benefits of
hypotension drug ProAmatine, the Food
and Drug Administration said yesterday.
The drug won approval 14 years ago and
is not a big seller for Shire. Shire has 15
days to request a hearing to object.
Berkshire buys Fiserv and J&J
Warren Buffett's Berkshire Hathaway
reported a new investment in payment
processor Fiserv and a higher stake in
drugmaker Johnson & Johnson as it
boosted stock holdings amid a broad
market decline. Berkshire reported a
4.4m share stake in Fiserv, valued at
$200.9m as of 30 June, according to a
quarterly filing late yesterday with the
FASHION retailer Hennes & Mauritz saw sales at its established stores rise sharply by ten US Securities and Exchange Commission
per cent in July compared with a year earlier as the firm reaped the benefit of an improv- showing its US-listed holdings. It also
ing global economy. Total sales in the month, which include newly opened stores, were up reported a 41.31m share stake in
21 per cent. The outfit said it had suffered a slow spring season while the economy Johnson & Johnson, up from 23.89m
remained rocky, but summer had been better. Picture: Micha Theiner/City A.M. shares three months earlier.
 6 News CITYA.M. 17 AUGUST 2010

Russian drought set

Cairn chief
executive Bill
Gammell is in
line for a wind-
fall

to hit grain output

75m tonnes, a day after Russia’s first
▲

FOOD
RUSSIA’S severe drought may cut its
grain output by 40 per cent this year, a
leading research group said yesterday,
as Russia’s weather service forecast
short-lived rains in some areas which
could help planting for next year.
Leading Russian agricultural ana-
lyst’s body SovEcon said it cut its 2010
grain crop forecast to 59.5-63.5m
tonnes from a previous forecast of 70-
grain export ban for 11 years came
into effect.
Coming after last year’s bumper
97m tonne crop, Russia’s worst
drought in over a century has
destroyed crops over large areas, spark-
ing wildfires which have shrouded
Moscow in eye-stinging smog for days.
SovEcon has already revised down
its forecast for Russia’s 2010 wheat
crop by 4m tonnes to 43-44m.

Vedanta buys
into Cairn’s
Indian oil firm
▲
ENERGY
BY MARION DAKERS
MINING group Vedanta said it will
take a majority stake in oil firm
Cairn’s Indian operations yesterday, in
a cash deal worth up to $9.6bn
(£6.1bn).
The London-listed miner ended
weeks of speculation and confirmed it
would take control of the second
largest oil firm in the country, Cairn
India, by purchasing between 51 and
60 per cent of the company.
The deal represents a 21 per cent
premium on Cairn’s Friday share price
on the Mumbai stock exchange. Cairn
chief executive Bill Gammell, who
owns 0.5 per cent of the firm, is expect-
ed to net a significant windfall.
Vedanta, which is London-listed and
Indian focused, will borrow as much
as $6.5bn to fund the acquisition, said
deputy chairman Navin Agarwal yes-
terday.
Standard Chartered is acting as lead
financing bank, and is said to be pro-
viding up to $5bn towards the pur-
chase, while Credit Suisse and
Goldman Sachs are joint financing
banks. The bank debt will have a
tenure of at least two years, the min-
ing company said.
Cairn India currently produces
125,000 barrels of oil a day, which
Ventanta said could roughly double
thanks to its 70 per cent stake in the
Rajasthan oil development project.
If the deal wins approval from both
sets of shareholders and the Indian
Reserve Bank, Vedanta would be only
the second diversified mining group
in the world, after BHP Billiton.
Meanwhile, Vedanta came under
fire yesterday with its controversial
project to develop a bauxite mine on
sacred tribal land in India in jeopardy
after a government inquiry said that
mining would destroy the way of life
in the area. The government panel
advised against the project.
ANALYSIS l Cairn Energy 493.20
500 p 16 Aug
460
420
380
17 May 7 Jun 25 Jun 15 Jul 4 Aug

Ireland: Anglo Wealth funds

Ve
er y Hot. Ver
e y Cool. aid is affordable pile into M&A
▲

BANKING
The T6 brings you boiling hot and ice-cold IRELAND’S bailout of Anglo Irish
Bank, a key factor behind the coun-
purified water, straight from the mains. try’s soaring budget deficit, is “costly
but manageable,” the head of its cen-
tral bank said yesterday.
Patrick Honohan, who is also on the
ECB’s governing council, said the total
cost of bailouts of all Ireland’s banks
and financial institutions would be
around 20 per cent of GDP.
Honohan said last week the net cost
T6water.co.uk
T6w
water.co.uk 0845 30 22 493 of the recapitalisation would reach 15
to 16 per cent of GDP, though the final
bill would depend on the price Anglo
got on sales of loans to Ireland’s bad
bank.
M&A
GLOBAL corporate mergers and acqui-
sitions activity involving sovereign
wealth funds rose to more than
$12bn (£7.7bn) in the second quarter
with 33 deals completed, Thomson
Reuters data showed yesterday.
Global announced M&A volumes
involving state investment vehicles
stood at $12.5bn in the second quar-
ter, up from just $1.1bn in the first
three months of this year. The num-
ber of deals rose to 33 from 24 in the
January-March period. A month and a
half into the third quarter, sovereign
wealth funds have made 13 M&A
deals worth $2bn.
 8 Economic News
China surges
past Japan in
symbolic shift
WORLD ECONOMY
▲
BY KATIE HOPE
CHINA’S per capita annual income is
just $3,600 (£2,299) compared to
Japan’s $37,800 but in the second quar-
ter of this year the once impoverished
communist state surged past Japan to
become the world’s second-largest
economy.
The faltering Japanese economy
grew by just 0.1 per cent in the three
months to June, an annualised pace of
0.4 per cent, with GDP of $1.28 trillion
eclipsed by China, which had econom-
ic output of $1.33 trillion, according to
official figures published yesterday.
Although it is not the first time
China has outpaced Japan in a single
quarter, the figures mark a symbolic
shift that is expected to see China
eventually overtake the US as the
world’s biggest economy. In the three
decades since pioneer leader Deng
Xiaoping dumped hardline-policies in
favour of free-market reforms, China
has leapfrogged the world league of
economic powers outstripping Britain
in 2005 and Germany in 2007.
Already the biggest exporter, car
buyer and steel producer, economists
expect China, which is growing at
around 10 per cent a year, to perma-
nently overtake the Japanese economy,
which is growing at just two to three
per cent a year, by the end of this year.
They believe it will then take over the
US, whose population is four times
smaller, by 2030.
“The crossover has come far sooner
than seemed likely two decades ago,”
says Capital Economics’ Julian Jessop.
But he says the story is less about
China’s strength than Japan’s weakness.
Struggling since the start of the
1990s when its property bubble burst,
and with flat consumer spending,
Japan is almost entirely reliant on
exports for growth. Yet the surging yen
has hit it hard. The contribution from
exports was mostly concentrated in
April – the first month of the quarter –
while May and June had near zero
growth on a month-to-month basis.
And with just 128m people com-
pared to China’s 1.3bn, the country is
also grappling with an ageing and
shrinking population.
Ironically, it is China, which could
help to both boost consumer spending
and the dwindling population.
Following a relaxation on visa
requirements, Chinese tourists have
flocked to their smaller neighbour,
with visits up 80 per cent over the past
year, while Chinese workers are
increasingly being brought over to
Japan on working visas to serve them.
As Martin Schulz of Fujitsu Research
Institute said: “The stronger China
continues to grow, the better it is for
Japan.”
China, led by premier, Wen Jiabao began
market reforms in 1978, gradually shed-
ding state control and laying the founda-
tion for a manufacturing and export
powerhouse.
ANALYSIS l China officially overtakes Japan
CHINA JAPAN
$1.337bn
Second quarter GDP:
Growth in second
quarter GDP (YoY): 10.3%
1.3bn
Population:
CITY VIEWS: ARE YOU WORRIED ABOUT RISING INFLATION?
ANDREW DAMM |
ROYAL BANK OF SCOTLAND
“Its a bit of a tricky situation at
the moment, but in the long
term the market will
sort itself out. I
think it will be a
slow recovery and
we need to be
cautious.”
NEWS | IN BRIEF
US manufacturing index rises
A gauge of regional manufacturing in
the US rose in August after plunging
the previous month but it fell short of
analysts’ forecasts, adding to evidence
that the US recovery is losing momen-
tum. The New York Federal Reserve
said yesterday that its Empire State
general business conditions index
increased to 7.10 in August from 5.08
in July. The August reading was below
market expectations. Economists had
expected a figure around 8.00 this
month.
CITYA.M. 17 AUGUST 2010
BoE heads
for row over
UK stimulus
▲
ECONOMY
BY JESSICA MEAD
BANK OF ENGLAND governor Mervyn
King will be readying his pen this
morning to write his second letter to
chancellor George Osborne if annual
inflation was, as expected, above
three per cent last month.
City economists expect headline
Picture: GETTY consumer price index (CPI) inflation
to ease to 3.1 per cent in July from 3.2
per cent in June, well above the
Monetary Policy Committee’s (MPC)
two per cent target. CPI has been con-
sistently above three per cent for the
whole of 2010 and the Bank of
England was forced to revise
upwards its inflation forecast at last
week’s Inflation Report.
Rampant inflation is unlikely to
ease significantly in the coming
months given the looming VAT hike
and higher food prices. This has been
cause for concern among MPC mem-
bers with Andrew Sentance having
voted twice to raise rates.
However, some analysts envisage a
three-way split of the MPC when the
August minutes are published tomor-
row. Andrew Sentance is forecast to
stick to his hawkish stance while two
$1.288bn
members may have voted for further
Second quarter GDP: QE. Names touted by economists
include David Miles and Adam Posen.
Meanwhile, annual inflation in
Growth in second
quarter GDP(YoY): 0.4% the Eurozone accelerated in July to
1.7 per cent, the highest level since
128m
November 2008. It was boosted by a
Population: surge in energy price inflation and
recent VAT hikes in Spain, Portugal,
Greece, and Finland.
Interviews by Alain Tolhurst and Simon Warner
JOHN WHITE | STEPHEN CHERRY |
QUASH ZENITH BANK UK
“Personally I'm not that worried “I'm not worried, the underlying
about inflation, but it could have rate of inflation is low, and the
a knock-on effect, drivers of inflation are a one-off
and people do and the problem will
seem nervous rectify itself. To
now. There was raise interest rates
optimism would send us
six or eight straight
weeks ago back into
but that's reces-
gone.” sion.”
US homebuilders less positive House prices drop in London
Homebuilder confidence in the US London house prices dropped by four
dropped to a 17-month low in August, per cent in August, wiping out any
according to the National Association gains made earlier this year, according
of Home Builders index. The index fell to Rightmove. On average £17,000
to 13, its worst reading since March came off London asking prices in
2009. Analysts had expected the index August, the biggest drop in two years.
to rise to 15 from 14 in July. A reading The average London house price now
above 50 indicates that builders view sits at £405,058, falling back to
conditions as good rather than poor. January levels. Wandsworth and Brent
The index has not climbed above 50 fell by 6.2 per cent, with Newham
since April 2006. The NAHB data is declining by only 1.2 per cent, and
the latest in a series of weaker read- Kensington and Chelsea falling by 1.7 per
ings for the US housing market. cent, in line with the national average.
CITYA.M. 17 AUGUST 2010 News 9

DRAMATIC RAID ON CITY JEWELLERS

UK pension pot
Jewel thieves values slumped
again in July,
escape with says survey
£380,000 haul

▲
PENSIONS
THE VALUE of the nation’s pensions
has continued to tumble in the past
month, with the average 30-year-old
losing £518 from their annual pen-
CRIME them off about security weaknesses. sion income in the last four weeks
▲

BY STEVE DINNEEN
MASKED raiders escaped with
£380,000 worth of jewellery and
watches after a brazen smash and
grab at a City arcade.
A gang of four thieves wearing bal-
aclavas smashed their way into luxu-
ry jeweller De Beers, in the Royal
Exchange, with sledge hammers in a
five-minute raid on Saturday night.
They targeted diamonds before
breaking into neighbouring watch-
maker Omega in a move described by
one source as an afterthought.
The dramatic CCTV images
released by the police show the men
piling handfuls of jewelery into white
sacks and scouring the stores for the
most expensive items.
The thieves then made their
escape in the same red BMW they
arrived in.
Police sources, including a former
member of the Scotland Yard Flying
Squad, are speculating the gang may
have had an inside man who tipped
Royal Exchange, which houses
some of London’s most expensive
retailers, was allegedly protected by
only a small lock and a series of glass
doors.
Police are now sifting through
hours of CCTV footage in a bid to
track the men.
A City of London police spokesman
said: “The force is treating this inci-
dent very seriously. A team of dedicat-
ed detectives from the City of London
Police is currently involved in the
investigation and is liaising with
other police forces.”
The spokesman added: “One of the
reasons this type of crime is rare in
the City is the protection offered by
the network of CCTV cameras that
cover the City. These include private
cameras in and around the Royal
Exchange, which officers are now
analysing as one line of enquiry.”
Police are appealing for witnesses
or information leading to the capture
of the men or their vehicle. No arrests
had been made last night.
alone according to recent figures.
The average 65-year-old is left with
£7,666 a year, according to Aon
Thieves pile handfuls of jewellery into sacks during the dramatic five- Consulting’s monthly pension track-
minute raid on Saturday night. Police suspect the gang of four may have er, which is half the amount thought
had an inside man who tipped them off. necessary for an adequate standard of
living. The losses highlight the short-
fall in personal funding for the aver-
age Briton at a time when the default
pension age faces abolition.
“Though we have seen some
improvement to economic circum-
stances in the past six months, pen-
sion pots are in only marginally
better shape than this time last year
and due to the volatility in stock mar-
ket activity, pension pots shrank once
again during the last month,” said
Richard Strachan of Aon Consulting.
The index tracks individuals who
pay in 10 per cent of a £25,000 salary
into a pension pot, and found that a
30-year-old’s annual pension income
had shrunk by 2.6 per cent to just
over £19,000 in the space of a month.
A 60-year-old’s income fell by 3.3 per
cent to just over £10,000.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates in association with

Daiwa Capital Markets Rabobank Kleinwort Benson Close Asset Management

Hetal Mehta, a former senior economic adviser
to the Ernst & Young ITEM club, has joined the
Japanese brokerage’s investment banking arm
as its new UK economist.
Mehta joins from Oxford Economics and has
also previously worked at HM Treasury and in
the office of the deputy Prime Minister as a
policy analyst. In her new role, she will report
to Chris Scicluna, deputy head of economic
research for Daiwa Europe.
The bank has hired Jane Foley as an
executive director and senior FX strate-
gist in its global financial markets divi-
sion.
Foley’s career in foreign exchange
strategy spans over 20 years. She joins
from Gain Capital, where she was direc-
tor of research.
She also previously held the role of
an FX strategist at investment bank
Barclays Capital.
Peter Neville has been appointed as
chairman of the board of private bank
Kleinwort Benson in the Channel
Islands.
Neville has four decades of experi-
ence in the financial services industry.
He is a former director general of the
Guernsey Financial Services
Commission, a position he held from
2001 until his retirement in May last
year.
The asset manager has appointed
Andrew Gillespie as its new marketing
director and Anita Juneja as head of
strategic relationships, both based in
London.
Gillespie joins from Standard Life,
where he was managing director of
marketing in the UK and responsible for
the successful active money campaigns.
Juneja was previously head of busi-
ness implementation at Cofunds.

To appear in CITYMOVES please email your career

updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com

Roast New Season Grouse

with a glass of
Justerini & Brooks Red Burgundy
Game dish of
the year
Restaurant
Magazine 2008
£27.50
Boisdale of Bishopsgate The Lamb at Hindon
Reservations on 020 7283 1763 Reservations on 01747 820 573
Boisdale of Belgravia Subject to availability from
Reservations on 020 7730 6922 17th August until 30th September
 The Capitalist
10
FINANCE
BOSS IN THE
WARS AFTER
HITLER GAG
AS A hack, it gets frustrating to be con-
fronted with a deafening silence when ask-
ing any financier to stand up and publicly
defend the industry against politically-
motivated attacks – especially when the
same hotshots are perfectly happy to shoot
their mouth off when cornered in private.
But, refreshing as it is to find an excep-
tion to the rule, there’s something to be
said for keeping a sense of perspective.
“It’s a war,” Blackstone Group chief
executive Stephen Schwarzman said of
the ongoing fight between US politicians
and private equity firms over increasing
the tax burden for the industry, according
to Newsweek. “It’s like when Hitler invad-
ed Poland in 1939…”
Comparing the US administration –
and, by default, President Barack Obama
himself – to a genocidal dictator?
That’s got to be quite the most bizarre
comparison The Capitalist has ever heard,
particularly coming from a Jewish busi-
nessman.
Unsurprisingly, Blackstone’s spinners
are refusing to comment on their boss’
unfortunate choice of words – though
behind the scenes, they’re presumably
doing their nut.
Blackstone’s Stephen Schwarzman is up in arms about raising private equity taxes Picture: GETTY
AW, SHUCKS
Calling the foodies of the City – especially
any competitive souls who sometimes feel
left out by the number of sporting stand-
offs among the financial community.
As those who know their seasonal
ingredients will be aware, British oysters
are at their best when there’s an “R” in
the month – meaning that we’ve got just
over two weeks until the season begins.
It’s an occasion that you’d expect tradi-
tional restaurants to mark, and Green’s
on Cornhill, the venue set up last year in
the old Lloyds banking hall, is no excep-
tion. The restaurant and bar is planning a
big party for the 1 September, I hear,
involving teams of eager City workers
CITYA.M. 17 AUGUST 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“According to
Schwarzman,
US politicians’
attitude to
private equity
firms is akin
to Hitler
invading
will be the first to produce the world’s first
Poland” 3D porn film.
Romping home as the favourite (sorry,
couldn’t resist) is a 3D “Sex and Zen:
Extreme Ecstasy” from Hong Kong direc-
tor Christopher Sun – in at 5/6 and whip-
ping the competition (a 3D remake of
“Caligula” by Italian director Tinto Brass
at 2/1 and Hustler’s upcoming porn ver-
competing in an “oyster shucking champi- sion of James Cameron’s Avatar at 3/1)
onship”. into submission.
Apparently, there’s an art to getting
into those slippery little suckers – and
though it’s not as easy as it looks, Green’s GETTING SHIRTY
is offering to teach interested parties how Investec is really upping the ante with its
to go about it ahead of the competition. sports sponsorship programme, just over a
Those in search of bragging rights – or a year after announcing a high-profile deal
way to impress their dates on a romantic to sponsor the horseracing Derby.
night out – should apply for more infor- And yesterday, the South African
mation within… bank added football club
Tottenham Hotspur to its list,
having sealed a deal to sponsor the
TOP-CLASS ROMP team’s shirts in all cup competi-
Throaty chuckles reverberated around tion ties – including European
the City A.M. office yesterday as it club competitions, FA Cup
emerged that bookie Paddy Power has put and League Cup matches – over
out odds on which adult film company the next two years.
CITYA.M. 17 AUGUST 2010
Hiring drive
in City boosts
Michael Page
RECRUITMENT
▲
BY VICTORIA BATES
RECRUITMENT group Michael Page
yesterday reported booming profit
growth over the first half, driven by a
strong performance across its global
divisions and by an explosion in
demand for City workers in the after-
math of the financial crisis.
Chief executive Steve Ingham said
recruitment activity in the City has
now been rebounding for several con-
secutive quarters – a trend seen right
across the board from the large
investment banks through to other
sectors such as hedge funds.
“Having cut back quite heavily
when the market was in trouble,
most firms now just don’t have the
capacity to handle the increased lev-
els of business,” Ingham told City A.M..
“That momentum has also continued
into July, so while we obviously can’t
predict in which direction the econo-
my is headed, we are hopeful that
financial services recruitment will
continue on its current course over
the second half of the year.”
Michael Page reported a 42 per cent
rise in pre-tax profit to £61.4m for the
six months to the end of June, under-
pinned by eight per cent revenue
growth to £393.5m.
The group said that the recovery in
its UK operations, which represent
Afghanistan looks for partner after
discovering 1.8bn barrel oil field
OIL
▲
BY JOHN DUNNE
AFGHANISTAN is looking for a com-
mercial partner after it discovered
an oilfield with an estimated 1.8bn
barrels in the north of the war-torn
country.
The discovery of the basin
between northern Balkh and
Shiberghan provinces was made
after a survey conducted by Afghan
and international geologists,
according to Jawad Omar, a
spokesman for the ministry of
mines.
He said: “I do not know its price
in the market. But the initial sur-
NEWS | IN BRIEF
Balfour gets US rail contract
Construction firm Balfour Beatty has
won the contract for a £560m com-
muter rail project in the US. It said it
had closed the deal for the design,
build and operation of the Eagle P3
project in Denver, beginning later this
month. The FTSE 250 firm will be
responsible for a 50 per cent share of
the $1bn engineering, procurement
and construction contract, worth
£333m. It also has 33 per cent of the
$1bn 29-year operations and mainte-
nance contract, worth £227m.
almost a third of gross profits, had
started in the financial services, sales
and retail markets and had now
spread to almost all of its sectors.
It cautioned that the nature of
recruitment means that the group is
vulnerable to economic shocks, but
said the broad diversification of its
business across geographies and
industries would reinforce perform-
ance in times of stress.
Over 40 per cent of Michael Page’s
fees are now generated in developing
recruitment markets such as Asia and
Latin America, where the group says
prospects for long-term growth are
strong.
Despite the bullish tone of the
results, shares in the firm closed
down 1.34 per cent yesterday at 368p
as investors fretted about the effect of
the uncertain macro economic out-
look on the business.
ANALYSIS l Michael Page
420 p 368.00
410 16 Aug
390
370
350
17 May 7 Jun 25 Jun 15 Jul 4 Aug
vey says there are 1.8bn barrels of
oil and I think there will be more.”
Various estimates of
Afghanistan’s hidden wealth have
been made in recent years, but the
challenge of exploiting the
resources in a country at war and
with little mining infrastructure is
daunting for most investors.
Omar gave no more details on
how the estimates were made but
said the country will offer the
reserves for development along
with other minerals in the coming
months. Afghanistan hopes that
untapped mineral deposits valued
at $3 trillion (£1.9 trillion) could
help reduce the need to rely on
Brewer defends S Africa share Misys sells off AllScripts stake
SABMiller aims to protect its 90 per
cent market share in South Africa from
rival Heineken, the head of the brewer's
South African unit said yesterday. The
world’s second-largest brewer was also
confident it had a solid case against
South African charges of violating anti-
competition laws, managing director
Norman Adami said. London and
Johannesburg-listed SABMiller is fac-
ing a challenge from Heineken, which is
trying boost its presence in Africa’s
largest economy.
News 11
Mall owner
BRASSERIE BLANC FOCUSES ON LE PUB
disposes of
four sites
▲
PROPERTY
BY JOHN DUNNE
THE Mall Fund, a major investor in
shopping centres in the UK, yester-
day offloaded four sites for £135.9m.
The fund, set up by Capital &
Regional and Aviva Investors in 2002,
sold the shopping centres to clients
of Rockspring Property Investment
Managers as part of its drive to cut
debts.
The Liberty 2 Shopping Centre in
Romford was sold along with the
Eastgate Shopping Centre in
Gloucester, the Marlands Shopping
Centre in Southampton, and the
Howgate Centre in Falkirk.
They were valued at £128.1m at
the end of June and sold for six per
cant above that figure, comfortably
beating analyst expectations.
Capital & Regional and Aviva last
month obtained consent from
investors and bondholders to
restructure £1bn of loans held by
The Mall Fund. It must now cut the
fund’s loan-to-value ratio to 65 per
cent in 2014 from the current 80 per
cent.
Other investors in The Mall Fund
include the Prudential, Isis Property
Asset Management, ING Real Estate,
Scottish Widows, Hermes Real
Estate, F&C Asset Management,
Arlington Property Investors,
Sparinvest and pension fund APG.
The sale reduces the number of
THE private equity firm behind Brasserie Blanc, Core Capital, said it will launch the centres the Mall Fund owns to 12. Its
White Brasserie Company which will focus on gastropubs. It will start by opening the most recent project was a £66m
Queen’s Head in Weybridge, Surrey, and the King’s Head in Teddington, Middlesex. development in Blackburn that
Raymond Blanc (above) is the chef behind Brasserie Blanc. Picture: REX opened at the end of July.
Western cash for bankrolling its
impoverished economy and for its
soldiers to maintain security when
foreign troops draw down num-
bers. But ravaged by three decades
of foreign interventions and civil
war, the central government now
faces the Taliban insurgency and
relies on foreign forces for control
of many parts of the vast Central
Asian country.
The US Department of Defence
estimated earlier this year that
Afghanistan’s mineral resources
could top $1 trillion. Omar said an
earlier plan for the tender of a
1.6bn barrel Afghan-Tajik oil block
in early 2011 was still on track.
A subsidiary of software firm Misys
has announced it is selling 25m shares
on behalf of its parent company and
majority shareholder. Misys is selling to
reduce its majority stake in AllScripts-
Misys Healthcare Solutions as part of
an agreement between the two, in
preparation for AllScripts' pending
merger with Eclipsys Corporation.
There is also an option for underwrit-
ers to purchase up to 3.75m additional
shares from the selling stockholders to
cover over-allotments.
 12 News CITYA.M. 17 AUGUST 2010

BlackBerry
agrees to share
LARA FIGHTS GAMING APATHY
Murdoch to launch
India user data tablet-only national
to avoid ban
newspaper in the US
▲

TELECOMS
BLACKBERRY-maker Research in MEDIA Earlier this year he erected paywalls

Motion (RIM) yesterday caved in to
demands to provide security services
partial access to its users’ information
in India.
The firm has been under pressure
to share encrypted information since
terrorists in Mumbai allegedly used
smartphones to plan their attack.
UAE recently reacted by threaten-
ing to force mobile networks to ban
BlackBerry’s email and Messenger
services.
An eleventh-hour deal saved a ban
coming into play in neighbouring
Saudi Arabia and now RIM appears to
have caved in to pressure in one of its
fastest growing markets.
A RIM spokesman declined to com-
ment on the developments. The firm
maintains it will continue to defend
its users’ data within the law of the
countries it operates in.
▲
BY STEVE DINNEEN
RUPERT Murdoch is planing an auda-
cious tablet-PC only newspaper in the
US.
Murdoch plans to charge users a
subscription fee to read his new ven-
ture on their iPads. It is understood
the as-yet-unnamed paper will draw
on resources from his existing media
outlets but also have its own staff of
several dozen.
The News Corp boss is desperate to
secure new revenue streams from the
internet for his newspaper empire,
which includes the New York Post in
the US and the Sun and Times in the
UK.
GAME maker Crystal Dynamics has attempted to breath life into the flagging industry The move is the clearest sign yet
with the release of a new Tomb Raider adventure, The Guardian of Light, which is avail- that Murdoch is prepared to force
able for download. The industry is suffering from the traditionally slow summer season, through changes to the way people
the World Cup effect and the unusually hot British summer. view news content.
around parts of his UK newspaper sta-
ble, charging readers to access informa-
tion from the Times and Sunday Times.
Early reports suggest their readership
has been slashed but it remains to be
seen whether the sites will become a
worthwhile source of revenue.
Murdoch told the LA Times the ven-
ture will appeal to readers who con-
sume their news on the go. He said it
will focus on short, easily digestible
stories ideal for commuters. The
tycoon added: “We’ll have young peo-
ple reading newspapers. It’s a real
game changer in the presentation of
news.”
Benedict Evans of Enders Analysis
told City A.M. there could be a gap in the
market for such a venture, but influen-
tial technology blog TechCrunch said
the move is akin to the doomed charge
of the Light Brigade.

China investors to
Fancy working for a snap up AIA stake
bank that actually INSURANCE (£6.4bn) for the stake, based on investments from Chinese
▲

BY HARRY BANKS AIA’s estimated $30bn value. investors as a security net for the
The plans come just months offer, making it easy for AIG and its

lends to the SME A CONSORTIUM of Chinese finan-

cial services companies are eyeing a
30 per cent stake in AIA, the Asian
after UK insurance group
Prudential’s high-profile $35.5bn
bid for AIA collapsed in tatters.
advisers to get the rest of the shares
away to traditional institutions
and mutual funds.

marketplace? arm of US insurance giant AIG,

ahead of its planned listing on the
Hong Kong stock exchange later
Bailed-out AIG is planning to list
AIA in Kong Kong later this year, in
a move which is expected to raise
AIA just last month announced
the shock appointment of the for-
mer head of Prudential, Mark

NO REALLY THEY DO!

this year. about $15bn. Tucker, as its new chief executive,
The consortium – thought to It is thought to have lined up tasked with overseeing the upcom-
include Industrial and Commercial Citigroup, Deutsche Bank, ing listing.
Bank of China (ICBC), the China Goldman Sachs and Morgan Tucker, 53, was a major player in
If you are working for a bank successfully Life insurance company, China
Cinda Asset Management, Fosun
Stanley as joint global coordinators
for the IPO.
the growth of Prudential’s Asian
business. He held the chief execu-
developing business within the SME marketplace in Group and Hony Capital – would The firm is understood to have tive’s position from 2005 until he
have to stump up around $10bn been actively seeking pre-IPO quit in 2009.
the London area this opportunity could be for you.
Good people are hard to find, and good companies BEST OF THE BROKERS
to work for are even harder to find!
ANALYSIS l Sports Direct ANALYSIS l BSkyB ANALYSIS l BAE Systems
ARE YOU A SUCCESSFUL BANKER 120 p 104.00
16 Aug
750 p 707.50
16 Aug
335 p
304.70
16 Aug
WITHIN THE SME MARKET PLACE? 115

110
700
330

325
650 320
Wouldnt it be great to work for; 105
315

••
600
A bank that is growing dramatically 100 310
A bank that is getting great press coverage, 95
550
305

••
A bank that has actually got a genuine appetite to lend
A bank where you can build your career as the company builds its business 17 May 7 Jun 25 Jun 15 Jul 4 Aug
500
26 May 16 Jun 6 Jul 26 Jul 13 Aug
300
26 May 16 Jun 6 Jul 26 Jul 13 Aug

We will be interviewing in London over the next couple of weeks. SPORTS DIRECT BSKYB BAE SYSTEMS
These opportunities don’t come along very often so could you please Numis retains its “add” rating on sports Investec has put a “hold” rating on J P Morgan has raised its earnings per
contact me asap. retailer Sports Direct after a solid year, BSkyB with a price target of 700p share forecast for BAE Systems after a
My contact details are: with ebitda of £160m in the year to based on an assumed takeover at 775p strong industry performance in the first
Kieran Kelly Principal Consultant Tel 0845 868 0748 April. But it has revised the ebitda fore- in six to nine months time. Investec half of the year, plus growth in all divi-
cast for this year down £7m to £195m notes the key investment risk is if News sions and a seven per cent increase in
Email  CV to Kieran@orbissearch.com due to a tougher trading environment. Corp walks away from any deal, but organic sales. With the seasonally
Nonetheless it believes the business has forecasts a five per cent earnings per stronger second half to come it
Ps we have quite a few roles so why not tell a a strong internet sales opportunity. share increase by the end of 2011. maintains its “overweight” rating.
friend or colleague and make their day as well!
To appear in Best of the Brokers email your research to notes@cityam.com
 Markets&Investment
13

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 . . . . . . . . . . . . . . . . . . . . . . . .263.70 –1.20 314.80 246.90 Cobham . . . . . . . . . . . . . . . . . . .216.90 +0.50 278.60 192.60 Investec . . . . . . . . . . . . . . . . . . .464.20* –0.10 565.00 378.20 SABMiller . . . . . . . . . . . . . . . . .1893.00* –4.00 2090.00 1307.00
3i Infrastructure . . . . . . . . . . . . . 113.70 –0.10 115.00 89.35 COLT Group . . . . . . . . . . . . . . . .120.50 +0.50 144.20 111.20 ITV . . . . . . . . . . . . . . . . . . . . . . . .49.92 –0.08 71.75 41.04 Sage . . . . . . . . . . . . . . . . . . . . . .236.80 –2.40 260.50 207.10
A.B. Foods . . . . . . . . . . . . . . . .1025.00 +2.00 1096.00 785.50 Compass . . . . . . . . . . . . . . . . . .505.50 +4.50 574.50 308.10 Jardine Lloyd Thompson. . . . . . .585.50 — 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .348.00 +0.30 373.00 307.60
Aberdeen Asset Man . . . . . . . . . .135.00 +0.30 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .442.00 –6.20 616.00 347.60 Johnson Matthey . . . . . . . . . . .1641.00 +4.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1371.00* +4.00 1450.00 957.00
Admiral. . . . . . . . . . . . . . . . . . .1466.00 +7.00 1520.00 991.00 Croda Intl . . . . . . . . . . . . . . . . .1279.00 +20.00 1355.00 581.00 JPMorgan Emerg Mkts . . . . . . . .526.00 +4.00 549.00 395.10 Schroders N/V. . . . . . . . . . . . . . 1107.00* +2.00 1185.00 804.50
Aegis . . . . . . . . . . . . . . . . . . . . . 115.10 +0.80 137.30 89.80 Daily Mail ‘A’ . . . . . . . . . . . . . . . .454.80 –1.70 539.00 333.10 Kazakhmys . . . . . . . . . . . . . . . . 1176.00 +20.00 1634.00 845.00
Afren . . . . . . . . . . . . . . . . . . . . . .96.50 –0.75 111.00 52.50 Dana Petroleum . . . . . . . . . . . .1672.00 –5.00 1729.00 968.50 Kesa Electricals . . . . . . . . . . . . .129.40 +0.20 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . .1121.00* –4.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .562.50 +13.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .363.60 –4.70 442.30 354.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .204.90 +1.20 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .580.50 +1.00 623.50 439.70
Aggreko . . . . . . . . . . . . . . . . . .1512.00 +4.00 1639.00 578.50 De La Rue . . . . . . . . . . . . . . . . . .688.00 –20.00 1021.00 666.50 Ladbrokes . . . . . . . . . . . . . . . . .132.80* +1.50 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .273.00 –0.30 403.10 244.00
Alliance Trust . . . . . . . . . . . . . . .312.90 +0.10 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .58.50 +0.65 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .523.00 +1.00 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .540.00 — 656.50 416.50
AMEC . . . . . . . . . . . . . . . . . . . . .879.50 +6.00 937.00 706.00 Derwent London . . . . . . . . . . . .1376.00 +12.00 1490.00 1077.00 Land Securities . . . . . . . . . . . . . .600.00 +1.50 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1324.00 –10.00 1358.00 929.50
Amlin . . . . . . . . . . . . . . . . . . . . .428.10 +3.80 436.20 336.30 Dexion Absolute . . . . . . . . . . . . .138.60 –0.40 148.00 121.10 Legal & General . . . . . . . . . . . . . .91.20 +0.45 94.70 64.30 Shaftesbury . . . . . . . . . . . . . . . .397.50 –0.30 426.50 341.70
Anglo American . . . . . . . . . . . .2409.00 +38.50 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1110.00 +2.00 1176.00 922.50 Lloyds Banking Gp . . . . . . . . . . . .69.41 –0.83 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1478.00 +5.00 1526.00 991.50
Antofagasta . . . . . . . . . . . . . . .1003.00 +12.50 1100.00 692.00 Dimension Data . . . . . . . . . . . . .121.50 +1.10 125.50 55.00 Logica . . . . . . . . . . . . . . . . . . . . 111.20 –0.40 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .572.50 +2.50 700.50 465.80
Aquarius Platinum . . . . . . . . . . .256.70 +0.60 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .412.60* — 431.30 229.00 London Stk Exchange . . . . . . . . .652.00* +1.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1154.00 +3.00 1242.00 764.00
ARM Holdings . . . . . . . . . . . . . . .307.00 –1.00 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .398.10 +9.20 496.50 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1494.00 +9.00 2198.00 1336.00 SOCO Intl . . . . . . . . . . . . . . . . . .447.00 –0.90 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .772.50 — 782.50 428.20 DSG Intl . . . . . . . . . . . . . . . . . . . .25.30 +0.68 39.75 23.32 Man . . . . . . . . . . . . . . . . . . . . . .210.40 –0.80 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .883.00 –11.00 949.00 561.00
Ashmore . . . . . . . . . . . . . . . . . . .285.20 +1.00 311.20 211.60 Dunelm . . . . . . . . . . . . . . . . . . . .389.00 +4.70 438.40 250.70 Marks & Spencer. . . . . . . . . . . . .332.60 +1.20 412.70 321.90
Astrazeneca . . . . . . . . . . . . . . .3306.50* +11.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .360.00 +0.90 499.90 308.50 Meggitt . . . . . . . . . . . . . . . . . . . .265.60* –2.70 331.00 197.60 Spirax-Sarco Eng . . . . . . . . . . .1501.00 — 1617.00 929.00
Atkins(Ws) . . . . . . . . . . . . . . . . .747.50 –9.00 801.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .403.80 +2.10 412.40 315.60 Melrose . . . . . . . . . . . . . . . . . . .218.40 –4.50 251.50 127.10 Spirent Comms . . . . . . . . . . . . . .124.80* –0.20 135.90 68.55
Autonomy Corp . . . . . . . . . . . .1563.00 –2.00 2012.00 1229.00 Electrocomponents . . . . . . . . . . .207.20 –0.30 245.00 142.90 Mercantile IT . . . . . . . . . . . . . . . .932.50 –10.00 1002.00 822.50 Sports Direct Intl . . . . . . . . . . . . .104.00 +1.50 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1340.00 +2.00 1375.00 805.00 EnQuest . . . . . . . . . . . . . . . . . . . 112.00 — 121.40 87.35 Michael Page Intl. . . . . . . . . . . . .368.00 –5.00 461.50 299.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1159.00* — 1190.00 522.50
Aviva . . . . . . . . . . . . . . . . . . . . .377.90 –9.50 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .387.40 +0.30 475.90 358.50 Millen & Copthorne . . . . . . . . . . .480.80* –1.80 514.50 297.90 St James’s Place . . . . . . . . . . . . .266.70* –3.50 296.90 194.40
Babcock International . . . . . . . . .521.00 –7.50 660.50 473.80 Eurasian Nat Res . . . . . . . . . . . .931.00 +9.50 1276.00 731.00 Misys . . . . . . . . . . . . . . . . . . . . .266.00 +9.60 281.70 173.90 Stagecoach. . . . . . . . . . . . . . . . .165.10 –0.50 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .304.70 –4.40 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .605.50 –14.50 630.00 252.00 Mitchells & Butlers . . . . . . . . . . .295.50 –2.60 343.90 228.30 Standard Chartered . . . . . . . . . .1715.00* –0.50 1927.00 1340.00
Balfour Beatty . . . . . . . . . . . . . . .256.40 +0.60 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .619.50 +2.00 664.50 489.00 MITIE . . . . . . . . . . . . . . . . . . . . .193.90* –0.30 281.70 192.20 Standard Life . . . . . . . . . . . . . . .210.40 +0.60 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .318.30* +1.30 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .91.25 –0.15 96.80 79.00 Mondi . . . . . . . . . . . . . . . . . . . . .467.70 +3.40 488.00 263.50 SuperGrp . . . . . . . . . . . . . . . . . .992.50 +21.00 1030.00 499.00
Barratt Development . . . . . . . . . . .94.00 –0.85 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .287.50* –1.70 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .292.90 +0.90 321.20 240.00 TalkTalk . . . . . . . . . . . . . . . . . . .125.50 +0.50 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .188.90 +1.00 220.00 136.60 FirstGroup . . . . . . . . . . . . . . . . .350.50* +1.40 448.80 331.20 Morrison Wm . . . . . . . . . . . . . . .274.40 +0.40 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .404.90 +4.30 501.50 341.40
Beazley. . . . . . . . . . . . . . . . . . . . 114.60* –0.80 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .268.00* –1.50 297.20 229.50 Murray Intl Tst . . . . . . . . . . . . . . .854.00* –0.50 893.50 632.00 Tate & Lyle . . . . . . . . . . . . . . . . .418.00 –3.70 509.00 382.00
Bellway. . . . . . . . . . . . . . . . . . . .541.00 –11.50 927.50 537.50 Fresnillo . . . . . . . . . . . . . . . . . .1018.00 +14.00 1139.00 539.50 National Express. . . . . . . . . . . . .220.10 –2.40 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .800.50 +0.50 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .261.80 — 285.70 209.40 National Grid . . . . . . . . . . . . . . .531.50* –6.00 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .27.46 –0.50 54.90 24.29
BG . . . . . . . . . . . . . . . . . . . . . .1023.00* –2.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .467.80 –1.70 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .1942.00 +18.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .444.80 +10.30 458.90 311.30
BHP Billiton . . . . . . . . . . . . . . .1962.50 +19.50 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .136.40* +0.70 155.00 100.20 Northumbrian Water . . . . . . . . . .322.00* –0.60 341.30 219.90 Templeton Emrg Mkts . . . . . . . . .543.50 –1.00 598.00 390.00
BlackRock Mining . . . . . . . . . . . .562.50 +5.00 654.50 413.00 GlaxoSmithKline . . . . . . . . . . . .1218.00* –6.50 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .121.40 +0.60 130.20 85.80 Tesco . . . . . . . . . . . . . . . . . . . . .398.50 –2.55 454.90 361.20
Bluecrest Allblue GBP . . . . . . . . .168.30 +0.80 168.30 136.20 Great Portland Estates . . . . . . . .308.00 — 332.10 236.60 Pace . . . . . . . . . . . . . . . . . . . . . .210.00 +0.50 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .175.60 –1.30 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .44.00 +0.03 49.50 33.00 Greene King . . . . . . . . . . . . . . . .401.50* –8.70 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .263.00 –4.00 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .321.30 +0.20 325.70 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .409.75 –6.65 658.20 296.00 Halfords . . . . . . . . . . . . . . . . . . .473.00 +3.00 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . . .976.00 –7.00 1069.00 695.00 Travis Perkins . . . . . . . . . . . . . . .802.00 –2.50 915.00 647.50
Brit Insurance . . . . . . . . . . . . . . .989.00 +1.00 1017.00 709.00 Halma . . . . . . . . . . . . . . . . . . . . .272.50* –1.10 298.70 186.60 Pennon . . . . . . . . . . . . . . . . . . . .587.50* –4.50 613.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .199.10 –2.10 313.90 189.20
British Airways . . . . . . . . . . . . . .216.20 +0.60 255.80 169.70 Hammerson . . . . . . . . . . . . . . . .364.10 –1.30 460.30 332.20 Persimmon . . . . . . . . . . . . . . . . .344.40 –2.40 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .367.10 –1.30 436.20 261.20
British Amer. Tob . . . . . . . . . . .2261.00 +8.00 2335.50 1832.00 Hargreaves Lansdown . . . . . . . .404.00 +22.00 404.00 214.00 Petrofac . . . . . . . . . . . . . . . . . .1303.00 +12.00 1372.00 849.00 Tullow Oil . . . . . . . . . . . . . . . . .1262.00 +3.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .429.30 –1.70 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .88.95 –0.70 119.00 88.05 Petropavlovsk . . . . . . . . . . . . . .1034.00 +29.00 1370.00 617.00 UK Commercial Prop. . . . . . . . . . .76.60* +0.10 84.90 65.25
British Land . . . . . . . . . . . . . . . .451.40* +2.00 532.00 416.00 Henderson . . . . . . . . . . . . . . . . .131.50 +1.40 157.80 110.60 Premier Farnell . . . . . . . . . . . . . .229.40 –1.40 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1659.00 +5.00 1694.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .479.00 –2.70 518.00 324.80 Heritage Oil. . . . . . . . . . . . . . . . .334.40* –4.60 587.00 324.20 Premier Oil . . . . . . . . . . . . . . . .1531.00 +9.00 1610.00 984.00
Brown(N.) . . . . . . . . . . . . . . . . . .226.30 +1.10 284.30 204.80 Hikma Pharma . . . . . . . . . . . . . .723.50 +4.00 746.00 440.00 Provident Financial . . . . . . . . . . .818.00 +3.50 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1703.00* –2.00 2024.00 1602.00
BSkyB . . . . . . . . . . . . . . . . . . . .707.50 –1.50 732.00 521.00 Hiscox . . . . . . . . . . . . . . . . . . . .353.10 –0.70 369.30 299.60 Prudential . . . . . . . . . . . . . . . . . .555.00 +2.50 665.00 475.70 United Utilities . . . . . . . . . . . . . .590.50 –2.50 606.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .137.20* –1.20 151.00 108.40 Hochschild Mining . . . . . . . . . . .315.00 +2.90 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .343.50 +0.50 373.20 210.10 Utd Business Media . . . . . . . . . .551.00 +2.00 579.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .688.00 –0.50 784.50 533.00 Home Retail . . . . . . . . . . . . . . . .216.20 +1.00 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .109.40 +0.20 179.10 107.40 Vedanta Resources . . . . . . . . . .2153.00 +100.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .829.00 — 891.50 450.20 Homeserve . . . . . . . . . . . . . . . . .468.60 –5.90 488.20 435.40 Randgold Resources. . . . . . . . .5585.00 +75.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1102.00 –16.00 1320.00 613.50
Cable & Wire Comms . . . . . . . . . .60.25 –1.00 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .654.50 +1.60 766.80 595.20 Reckitt Benckiser . . . . . . . . . . .3167.00* +46.00 3667.00 2694.00 Vodafone . . . . . . . . . . . . . . . . . .153.60 +0.35 155.50 124.85
Cable & Wire Wwide . . . . . . . . . . .61.70 –0.50 94.80 61.30 Hunting . . . . . . . . . . . . . . . . . . .561.50 +37.00 659.50 423.20 Reed Elsevier . . . . . . . . . . . . . . .530.00* –7.00 566.00 414.00 Weir . . . . . . . . . . . . . . . . . . . . . 1182.00 +8.00 1275.00 599.00
Cairn Energy. . . . . . . . . . . . . . . .493.20 +24.90 497.60 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .392.00* +2.00 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .71.85 –0.90 125.50 68.65 WH Smith . . . . . . . . . . . . . . . . . .405.80 –0.70 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1564.00 –12.00 1759.00 1496.00 IG . . . . . . . . . . . . . . . . . . . . . . . .483.30 +0.30 498.90 291.00 Renishaw . . . . . . . . . . . . . . . . . .869.00 +22.00 915.50 420.00 Whitbread . . . . . . . . . . . . . . . . .1371.00 –10.00 1645.00 917.00
Capita . . . . . . . . . . . . . . . . . . . . .700.50 +3.00 829.50 643.50 Imagination Tech Gp . . . . . . . . . .340.40 –1.60 358.30 149.75 Rentokil Initial . . . . . . . . . . . . . . . .98.15 –1.15 140.20 94.10 William Hill . . . . . . . . . . . . . . . . .166.00 +2.20 217.80 160.50
Capital & Counties . . . . . . . . . . . 115.30 +0.30 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .699.50 +4.00 786.00 362.10 Resolution . . . . . . . . . . . . . . . . .246.00 — 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .434.00 –5.40 487.00 365.50
Capital Shopping Centres . . . . . .320.90 –5.30 580.00 300.10 Imperial Tobacco. . . . . . . . . . . .1865.00* +15.00 2159.00 1672.00 Rexam . . . . . . . . . . . . . . . . . . . .302.30 +4.80 348.80 250.50
Carillion . . . . . . . . . . . . . . . . . . .293.20 +0.70 361.90 263.90 Inchcape. . . . . . . . . . . . . . . . . . .267.10 +1.40 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .598.50 –1.50 729.00 404.50 Wolseley . . . . . . . . . . . . . . . . . . 1311.00 –18.00 1742.00 1155.00
Carnival . . . . . . . . . . . . . . . . . .2141.00 –9.00 2937.00 1747.00 Informa . . . . . . . . . . . . . . . . . . . .378.20 +0.40 439.40 252.10 Rio Tinto . . . . . . . . . . . . . . . . . .3307.00* +30.00 4104.00 2218.50 Wood Group (John). . . . . . . . . . .348.90 –0.90 411.70 277.00
Catlin . . . . . . . . . . . . . . . . . . . . .350.10 –1.00 394.60 303.20 Inmarsat . . . . . . . . . . . . . . . . . . .686.00 –2.50 831.00 491.00 RIT Capital Partners . . . . . . . . .1107.00 –3.00 1215.00 913.50 WPP . . . . . . . . . . . . . . . . . . . . . .670.50 –0.50 744.00 461.90
Centamin Egypt . . . . . . . . . . . . .169.00 +2.00 174.75 80.00 Intercontl Hotels . . . . . . . . . . . .1069.00 –4.00 1244.00 697.50 Rolls Royce . . . . . . . . . . . . . . . .559.50 — 631.50 421.10 Xstrata . . . . . . . . . . . . . . . . . . .1014.00 +18.40 1344.50 735.50
Centrica . . . . . . . . . . . . . . . . . . .324.20 –3.60 333.10 216.90 Intermediate Capital . . . . . . . . . .265.60* +2.40 332.00 233.50 Rotork . . . . . . . . . . . . . . . . . . .1478.00 –14.00 1537.00 933.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .633.00* –3.00 855.50 560.50 Intertek . . . . . . . . . . . . . . . . . . .1646.00 –7.00 1745.00 1103.00 Royal Bank Of Scot . . . . . . . . . . . .45.92 –1.05 58.95 28.25
Chemring . . . . . . . . . . . . . . . . .2661.00 –14.00 3711.00 2017.00 Intl Personal Fin . . . . . . . . . . . . .231.80 +0.80 283.00 128.25 Royal Dutch Shell A . . . . . . . . .1772.00* –5.50 2068.50 1559.50 * Ex-Dividend † Suspended
Chloride Group . . . . . . . . . . . . . .373.60 +0.60 390.50 138.60 Intl Power . . . . . . . . . . . . . . . . . .364.70 –1.30 384.10 248.20 Royal Dutch Shell B . . . . . . . . .1703.00* –12.00 1997.50 1528.00
Close Bros . . . . . . . . . . . . . . . . .664.00 –0.50 806.50 657.00 Invensys . . . . . . . . . . . . . . . . . . .243.50 +0.10 350.30 234.50 RSA Insurance . . . . . . . . . . . . . .124.50* –2.90 142.00 114.10 www.interactivedata.com

*
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FTSE remains flat as takeover moves Education stocks suffer as

are offset by weak Japanese survey weak data spooks traders
forced by the disappointing growth ing the oil giant after Alabama said it daily volume of the year.

THELONDON numbers from Japan earlier today

which set a bit of a negative tone,”
was suing for “catastrophic harm”
caused by the Gulf of Mexico oil spill. THENEW YORK The biggest losers were education
stocks, which tumbled on concerns

REPORT
said Henk Potts, equity strategist at
Barclays Wealth.
In the latest sign the recovery may
lag expectations, Japan’s economy
Royal Dutch Shell and BG Group
dipped 0.3 per cent and 0.2 per cent
respectively, as the price of crude
slipped.
REPORT federal regulators will impose
tighter controls on student loans.
Corinthian Colleges lost 21.6 per
cent to $5.22 (£3.33) and was one of

B I
RITAIN’S top shares closed flat grew just 0.1 per cent in the second Elsewhere, British insurer Aviva, NVESTORS found little reason to the most actively traded on the
yesterday as concerns over eco- quarter, below forecasts. down 2.5 per cent, failed to see off bid buy stocks yesterday as the Dow Nasdaq.
nomic recovery after weak data And in the United States, home- speculation despite rejecting a £5bn and S&P 500 ended barely Strayer Education fell 18.4 per cent
from Japan offset firmer min- builder sentiment unexpectedly fell offer from rival RSA Insurance Group changed, suggesting that even to $163.26 and Capella Education
ers, led up by Vedanta Resources for a third straight month in August that analysts and shareholders said several days of losses have not con- slumped 13.2 per cent to $60.94.
which made its play for a controlling to its lowest level since March 2009, might add up. RSA fell 2.3 per cent. vinced institutions share prices are The Dow Jones industrial average
stake in Cairn India. according to an industry survey. Miners were in demand. Vedanta attractive. A smattering of strength was down 1.14 points, or 0.01 per
The FTSE 100 ended up 0.66 points Integrated oil stocks took the most Resources will spend up to $9.6bn in technology shares boosted the cent, at 10,302.01. The Standard &
at 5,276.10, having closed up 0.2 per points off the UK blue-chip index, (£6.1bn) acquiring as much as 60 per Nasdaq modestly, but just 5.812bn Poor’s 500 Index was up 0.13 point,
cent on Friday. “Investors continue to with BP the worst off, down 1.6 per cent of Cairn India, branching out shares traded on the combined NYSE or 0.01 per cent, at 1,079.38. The
be spooked by the poor macroeco- cent, with traders pointing to mount- into oil and gas and delivering a cash Arca, Nasdaq and American Stock Nasdaq Composite Index was up 8.39
nomic environment. That was rein- ing worries about the legal threat fac- windfall to its current owners. Exchanges for the second-lightest points, or 0.39 per cent, at 2,181.87.
 14 Markets & Investment | Contracts for Difference
SUMMER FALL
MAY SET TONE
FOR AUTUMN
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
W
HEN I set off on holiday two weeks
ago, equities were soaring. The S&P
was threatening to burst through
the top end of a significant band of
resistance between 1,124 and 1,130. This is an
area defined by the 50 per cent retracement
of the fall from the October 2007 high to the
March 2009 low, and more recently, the
retracement of the sell-off from April to
March this year. Driving the rise were the sec-
ond quarter earnings figures, which were gen-
erally interpreted as bullish. The constant
stream of poor data convinced investors that
the Federal Reserve was on the cusp of
announcing a further round of stimulus meas-
ures, or QE 2.
But the resistance held, and last week saw
the US indices slump to their current levels,
with the S&P now testing support at
1,075/80. The trigger seems to have been
disappointment following last Tuesday’s
FOMC statement. The Fed once again
expressed its concerns about the US econo-
my and tempered its outlook for growth. It
also announced that the proceeds of its hold-
ings of mortgage backed securities would be
used to purchase Treasuries, delaying its exit
strategy. This was not the stimulus
announcement that the market had been
hoping for, and led to a sharp sell-off that
gathered pace into Wednesday.
This move saw the S&P fall back below its
50, 100 and 200-day moving averages
(DMA). If the weakness continues, it won’t
be long before the 100-DMA breaks below
the 200 based on their current trajectories.
The last time this happened was in December
2007 and the S&P then lost more than 50
per cent of its value. But if equities can snap
back from current levels, then we look set for
further range-bound trading for now.
Although August marks the peak of the
holiday season, it isn’t unusual to see big
intra-day price moves. The question is
whether the recent weak tone is setting the
scene for a dismal second half, or if we can
expect another rebound once the trading
desks are again fully manned.
AMPLIFY
YOUR DEPOSIT
*Minimum trade volumes and withdrawal restrictions apply. See gftuk.com for full terms and conditions. CFDs, spot forex and spread bets are leveraged
products and may not be suitable for everyone as it is possible to lose more than the funds you deposit. Please ensure that you fully understand the risks
involved. GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority.
SPREAD BETS | CFDs | FOREX / gftuk.com / free phone 0800 358 0864
CD03UK.115.080310
CITYA.M. 17 AUGUST 2010
Take off in the blue with
aviation equity growth
Crises make good
buying opportunities,
writes Juliet Samuel
W
ITH tour operators struggling,
strikes looming and the spectre
of wildcard events like May’s vol-
canic ash cloud, contracts for dif-
ference (CFD) traders might be justifiably
nervous about the aviation industry. But
this caution flies in the face of the figures:
globally, the sector is growing at a healthy
pace and even the major European carriers
beat market expectations with their second
quarter results. And the signs are that pas-
senger numbers – including the most prof-
itable business and premium travellers –
are on the up.
In line with their consensus-beating
results, European airlines have also deliv-
ered decent share price appreciation in the
last six weeks, with British Airways – UBS’s
most favoured European aviation stock –
delivering a 15.4 per cent rise from 10 July
to 10 August and Air France-KLM rising 14.7 With premium travellers
per cent over the same period. Although returning, there’s an airline
Europe lags behind many of its emerging stock for everyone
market rivals in terms of recovery speed, Picture: GETTY
the undervaluation of European airline
stocks can give a picky trader good returns
and solid dividend yields over the medium traders can also access aviation growth by And premium passengers – that is, those
term – if you are prepared to sort the wheat targeting air industry service equities like not travelling economy – are returning to
from the chaff. BBA. The stock is recommended as a “buy” the skies in line with world trade (see
The strength of the recovery in the avia- by RBS’s Joe Spooner and analysts at chart): the most recent figures available
tion industry has surprised many analysts. Charles Stanley, with both forecasting a show that at the beginning of 2010 their
Although the ash cloud in April-May has strong and steady recovery. numbers were up 10 per cent on 2009.
cut into European airlines’ profits, a savvy For those traders who are bullish on the All of which means that whether traders
trader who bought in May when stocks global recovery, it makes a lot of sense to are after medium-term, opportunistic buys
were at their lowest would today have target emerging market airline stocks. Data or long-run, high-return growth, there’s an
made 16.8 per cent on BA, 18.6 per cent on collected by the International Air Transport aviation stock to fit your needs.
Lufthansa and 24.8 per cent on Iberia. but Association (IATA) – a trade body of 230 air-
these figures show how much timing mat- lines – shows that growth is concentrated ANALYSIS l Premium passengers and
ters: unless traders are in for long-haul in the Middle East and Pacific Asia. IATA 10 world trade growth
returns, they are best off targeting medi- forecasts a net profit of $2.2bn for Asian 5
um-term appreciation among European carriers this year, the largest profit of any
airline stocks by buying during a crisis and region. Compared to last year, passenger 0 % change
over year
selling after a couple of months as the numbers have swelled 10 per cent for the -5
stocks return to levels that reflect their north and mid Pacific, 14 per cent for with-
steady recovery. in-Asia flights and an impressive 22 per -10
It pays to be wary, however. easyJet has cent for flights between Asia and the -15 Premium passenger
bucked the trend of recovering stocks. Middle East. numbers
-20
Plagued by problems over punctuality and Firms such as Cathay Pacific and Developed countries
trade good
a row between brand-owner Sir Stelios and Singpore Airlines are enjoying the benefits -25
the easyJet board, its stock has sunk even of this expansion, with both stocks having Source: IATA, Netherlands CPB
-30
below its May lows. On the other hand, appreciated steadily since the start of 2010. Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010
OPEN AN ACCOUNT WITH GFT
AND WE’LL MATCH
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Offer ends 15 September.
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CITYA.M. 17 AUGUST 2010 Investment | Contracts for Difference 15

Weak economy
and strong yen
offer Nikkei no
summer respite
A fall below 9,000 is 225 – Japan’s leading stock index – to
shed 0.6 per cent yesterday, closing at
more than possible, 9,196.67 and it is in serious danger of
falling to the psychologically important
9,000 level, says Manoj Ladwa, senior trad-
writes Jessica Mead er at contracts-for-difference (CFDs)
provider ETX Capital.
He adds: “The odds now are for the

I
T HAS been a tough 2010 for the
Japanese stock market, which is
already down some 13 per cent so far
this year. Its export-oriented compa-
nies have suffered from a toxic mix of a
surprisingly strong yen, lacklustre con-
sumption in the West and now depressed
domestic demand as well.
Consequently, Japanese GDP growth
between April and June was disappoint-
ing to say the least – the economy expand-
ed by only 0.1 per cent on the first three
months of the year as consumer spending
stalled and net exports slowed. This puts
the annualised growth rate at just 0.4 per
cent, well below the 2.3 per cent that the
market was expecting.
As Lindsay Coburn, independent con-
sultant to ING says: “Anything that could
come in weaker than expectations did
come in weaker in the second quarter
GDP release.” Indeed, Japan’s economic
output lagged that of China in the second
quarter, raising the chance that China
will officially become the world’s second
largest economy in 2010.
The poor GDP data caused the Nikkei
ANALYSIS l Performance of the Nikkei 225 over the past six months
11.5K
11K
10.5K
10K
9.5K
Mar Apr
Nikkei to trade down to the 9,000 level;
there are no real key support levels
between where we are now and 9,000.”
The Nikkei has flirted with the 9,000 level
a number of times but it has not traded
below it since May 2009.
“If it breaks below 9,000 then it could
trade a lot lower because all the stop loss-
es will be taken out and a lot of orders
will be triggered,” adds Ladwa.
He reckons that the Nikkei could well
go at least a couple of hundred points
below 9,000 in the short-term. But, longer-
term, if the situation in Japan continues
to worsen, then Ladwa reckons that we
could see the index sub-8,000 – a level it
has not traded at since the dark days of
March 2009.
But how likely is it the economic and
corporate situation will worsen from
here? Further economic deterioration is
highly likely. ING’s Coburn doesn’t rule
out a downward revision to second quar-
ter growth and says that his initial esti- Emerging markets are sive quarters of negative growth have to tailor their products to the BRIC coun-
mates for the third quarter point to Japanese firms’ key to clearly increased – we think to around tries and the share of exports heading to
outright contraction in the economy: success one-third. Japan could be in recession America and Europe has fallen sharply.
“The odds that Japan will post two succes- right now.” A struggling economy will fur- However, any continued strength in the
Picture: REUTERS ther undermine investor confidence and yen poses difficulties for Japanese
CFD traders could expect to see subse- exporters. A combination of political
quent weakness in the Nikkei 225. uncertainty, deflation, and even further
In terms of the corporate situation, quantitative easing should weaken the
Japanese firms have belatedly woken up yen. Ole Hansen, senior manager for CFDs
to the allure of emerging markets and and listed products at Saxo Bank, says:
their burgeoning middle classes. “Corporate Japan is operating on the
Corporate profitability is up fourfold on a assumption of dollar-yen above ¥90 for
year ago, thanks to a surge in sales to the next six months, so the current level
emerging markets. Firms are now rushing (¥85.47) hurts.” Continued yen strength
will clearly hit corporate Japan and, if it
Corporate Japan is operating on the basis of persists, its profitability.
The Nikkei is expected to close in on
dollar-yen above ¥90 for the next six months 9,000 in the coming week or so but a sus-
tained fall below this level will require a
so the current level of ¥85 is hurting them return to recession and a strong yen. CFD
traders should look for an opportunistic
May Jun Jul Aug short trade but place your stops close.

THE TIPSTER and Unite, although the market seems confi-

dent that a resolution can be found. After
the disruption caused by the volcanic erup-
STRIKE ACTION tions in April and strike action by its cabin
AND M&A BIDS crews, British Airways’ share price has
been holding up well, but there’s no siesta
KEY FACTORS time for BAA’s Spanish owner Grupo
Ferrovial. IG Markets’ current price for
THIS WEEK British Airways is 217.2p-217.3p while the
current price quoted for Grupo Ferrovial is
€6.407-6.424.
ities. It has been finding support at progres-
sively higher levels and has long-term sup-
port around 380p. CMC Markets’ spread on
Vedanta Resources is 2,143p-2,145p while
Cairn Energy is quoted at 484.70-484.90p.
The $9.6bn takeover of 51 per cent of
Cairn India by Vedanta may also lead to fur-
ther consolidation in the energy sector, with
FTSE 250-listed Hardy Oil viewed as a pos-
sible target. In fact, shares in Hardy, which
also has oil interests in India, have shot up

A
S RECENT demand for both sterling
and the euro wanes while economic
uncertainty persists, buyers are taking
advantage of the recent falls in the
dollar and loading up on greenbacks. This has
started to push up the US dollar trade-
weighted index. ETX Capital is currently
quoting 8241-8249 for the September dollar
index.
It has been a woeful few months for the
British travelling public and once again
industrial action is on the cards. This time
it’s a dispute between airport operator BAA
Vedanta’s acquisition of Cairn’s energy
business has had contrasting effects on
both companies’ share prices. Vedanta’s
share price has fallen 20 per cent over the
past week to nine-month lows and is near-
ing a key support level around the 2,000p
mark. A break and close below here could
well open up further share price losses for
the stock in the medium term.
On the other hand, Cairn’s share price has
continued to post new all-time highs as the
cash injection improves its cash flow and
allows it to invest more in exploration activ-
by 25 per cent since last Wednesday, sug-
gesting that the market is already starting
to see a bid as more than just a possibility.
Hardy Oil’s share price has broken
through the 100-day simple moving average
at 180p and closed yesterday above the
150-day exponential moving average at
198p. The stock traded around 250p at the
start of the year, so there is still scope for
further gains should a bid materialise.
Spread Co quotes Hardy Oil at 202.85p-
203.15p.
Jessica Mead Despite the Fed’s actions, the dollar is rising again Picture: REUTERS
 Lifestyle
16
How to send jet lag packing
Timothy Barber looks
at ways to stave off
the after-effects of
long-haul travelling
NUTRITION
Nutritionist Charlotte Fraser recom-
mends making sure you slot back in
with the eating routine wherever you
are locally. Consequently, if it’s breakfast
time, eat breakfast – whether your body
feels as though you should do or not.
Flying can be very dehydrating, so make
sure you drink lots of water to replenish
what the flight has taken out of you.
That dehydrating atmosphere can also
contribute to the constipation a lot of
people get as a result of flying. Fraser rec-
ommends eating lots of fresh vegetables
(particularly leafy green ones that are
richer in magnesium, which is a stress-
buster) and wholegrains to support your
bowel. “Wholegrains are rich in B vita-
mins which give you that energy pick-
me-up and help calm the nerves – very
useful when you’re finding yourself
thrown back into the daily grind,” says
Fraser. You might also want to up your
vitamin C intake via some fresh fruit and
vegetables to try to ward off any colds
and germs circulating on the plane.
www.naturopathic-nutrition.com
YOGA
Practicing a bit of yoga can be an espe-
cially effective way of restoring some
equilibrium after long-haul travel. If
you’ve been sitting scrunched up in a
seat for a long time, yoga stretches will
ease and relax your body, while breath-
ing exercises and postures can calm and
rejuvenate body and mind. “It reboots
your energy, encourages healthy regula-
tion of your hormonal systems, and con-
centrating on breathing oxygenates your
blood and gives you a
sense of wellbe-
ing,” says
Alessia
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| Health & Beauty
TREATMENTS
THE JET LAG REVIVER
First up is a full body salt and oil scrub
before cramped limbs are given a circu-
lation-boosting massage. The scrub and
massage enliven skin, boost blood flow
and zap the stress of travel, leaving you
with a spring in your step as you accli-
matise to being home again.
£120 for 1hr 25 minutes at Spa Chancery
Court, 252 High Holborn, WC1V 7EN, tel: 020
7829 7058.
RAW GLOW JET LAG FACIAL
Glow Urban Spa has mastered the art of
using natural ingredients to revitalise
tired skin. The facial uses completely
fresh ingredients – think berries, goat
milk, honey and oatmeal – that are
blended on site. First, a natural cleanse
and exfoliation, followed by the Jet Lag
mask (the fresh mixture) and finally, a
Raw Glow regenerating serum.
60 mins for £90.00 at Glow Urban Spa, 8
Motcomb Street SW1X 8JU, tel: 020 7752
0652.
THE TRAVELLER
This stalwart for the travel-weary gen-
tleman is a head-to-foot treatment. The
massage helps to release and eliminate
tired, tense muscles while enhancing
deep relaxation. A must-do for those
who have been in the air for a while, or
are permanently on the go. 75 mins for
£115.00 at Gentlemen’s Tonic, 31a Bruton
Place, W1J 6NN, tel: 020 7297 4343
Avellino of Camden yoga centre
Alchemy (www.alchemythecentre.co.uk).
She recommends doing some gentle
stretches and breathing exercises before
and during the flight to lessen the jet lag
impact. On returning, sit down cross-
legged and take in 10 deep, long breaths.
Then interlace the hands, breathe in
deeply and stretch the palms right up
above the head, before releasing – repeat
this 10 times.
Next, simple positions like the
Downward-facing Dog (head-down on
hands and feet with bum in the air), the
Child’s Pose (kneeling doubled up with
bum touching heels and arms stretched
forwards, illustrated below) and the
Cobra (lying on your belly and lifting
the head and chest off the floor), all
mixed with some long, deep breaths
while holding position will help revi-
talise and rebalance.
LOTIONS ‘N’ POTIONS | BEAT THE LAG
SPRAYOLOGY TRAVELEASE
£18
www.glowgetter.com
This spray, which goes under the tongue,
contains eight “re-balancing” ingredients
including cocculus (Indian cockle tree) for
drowsiness and fatigue; apis (honey bee) for
dehydration, and nux vomica (chestnut) for
feelings of disorientation.
H GILLERMAN TRAVEL REMEDY
£38
www.glowgetter.com
The essential oils in this blend help you to
adjust to temperature, climate and time-
zone shits. “It has an uplifting lemon-balm
scent which helps to reduce post-travel dis-
comfort,” says Georgie Wolfenden, herbal
remedy expert.
NUDE CELLULAR RENEWAL SERUM
£68
www.nudeskincare.com
Helena Christensen and Erin O’Connor
swear by it. Say hello to the brand new Nude
skincare line (available in the UK from
September), whose facial serum battles the
drying effects of plane air with the likes of
Japanese sea kelp and bioactive peptides to
keep skin plump.
CITYA.M. 17 AUGUST 2010
FITNESS
WATCH
BY KEITH ANDERSON
PERSONAL COACH AT FULL POTENTIAL
Running is a
great workout
but it’s easy to
hurt yourself
I
NJURY is perceived as a natural by-prod-
uct of running. And while it’s true that
two out of three runners suffer injury
each year, with careful planning, many
can be avoided. Follow the advice below to
tip the odds in your favour.
HAVE THE RIGHT KIT
Kit has advanced hugely in recent years
and modern day gear can offer much assis-
tance with comfort and injury prevention.
In particular, it’s crucial that you’re in the
right trainers – so see a specialist and get
the pair with the correct support for you.
CURB YOUR ENTHUSIASM
A difficult concept to grasp when you’re
keen to improve, but going suddenly from
five miles a week to fifty is asking for seri-
ous trouble. Layer training on gradually and
consistently, never looking to increase your
mileage by more than 10 per cent each
week. Intersperse hard sessions with days
of rest, cross training or easier runs, giving
the body time to recover.
STAY LOOSE AND CHILL OUT
Start each run with a gentle jog or walk
until you’re nicely warmed up. Fit stretching
into your routine as often as possible after
exercise and on rest days. Incorporate
pilates or yoga if you can to improve flexi-
bility. Immediately after a hard session you
might consider imitating Paula Radcliffe
and taking an “ice bath” to arrest any inter-
nal bleeding.
CONDITION AND CROSS-TRAIN
Running is a high impact sport so try to do
some of your miles on softer surfaces such
as grass and loose trails. Don’t be afraid to
reduce the time spent running and replace
it with lower impact cross training like
swimming, cycling and aqua jogging. If you
can’t get to the gym then try to work on
body conditioning by doing squats, single
leg squats, sit-ups and press-ups.
LISTEN TO YOUR BODY
Don’t wait until it’s too late – see a physio-
therapist when you detect the first warning
sign and it’s likely they can mend you quick-
ly and easily. Get a regular sports massage
during periods of intensive exercise. If you
do get a niggle then revert to a rehabilita-
tion programme of cross training or rest
and reintroduce running gradually.
Runners wanted for the Garmin #4miler. For
further information and to sign up your
office visit www.garmin4milechallenge.co.uk.
CITYA.M. 17 AUGUST 2010 Lifestyle | TV& Games 17

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QUICK CROSSWORD
    

SUDOKU KAKURO
23 6 12 41 28
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15 24
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    WORDWHEEL L I
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7 Musical records (6)
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2 Jewish spiritual
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E M 9 Apex (4)
11 Fragrant bushy plant (5) 5 Account for (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 12 Cold dessert often 6 Speedily (5)
8 Manual dexterity (7)
LAST ISSUE’S or more, all must contain the central letter and
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14 Expanse (4) 10 Listening organ (3)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
R K 16 Daybreak (4)
19 State of being male
13 Dame Margot
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QUICK CROSSWORD 6 7 4 8 5 1
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 Sport
18
Woods must wait on Ryder Cup wild card spot
▲
GOLF
BY JON COUCH
TIGER WOODS must rely on a wild
card pick from captain Corey Pavin if
he is to make the US Ryder Cup team
this year.
The world No1 tied for 28th in the
US PGA Championship at Whistling
Straits at the weekend – not enough
to propel him into the eight automat-
ic qualifying places.
As it is, Woods, the 14-time Major
champion, lies 12th in the standings
and must now rely on receiving one
Martin would
have done his
countryproud
ON THE GREENS WITH
SAM TORRANCE
I
T must be something they put in
the water there because Martin
Kaymer’s US PGA victory at
Whistling Straits was so typically
Germanic.
The young man handled himself
magnificently and was as solid as a
rock for the final 36 holes en route to
his maiden Major title, which was
encapsulated by his birdie on 17 in
the play-off.
He admitted afterwards he felt
Ponting targets an Ashes
whitewash over England
▲
CRICKET
RICKY PONTING has continued the
Australian trend by admitting it’s
“absolutely possible” his side can
regain the Ashes with a whitewash
victory this winter.
Ponting, 35, captained the
Australians to a 5-0 thrashing of
England when the teams last met
Down Under in 2006-07 – only the sec-
ond time that’s happened in 125 years
of Ashes cricket.
Since then, Ponting has lost his
grasp of the Ashes urn after Andrew
Strauss’s England exacted revenge with
a 2-1 victory on home soil last summer.
But now, in a similar vein to former
fast bowler Glenn McGrath, who
famously predicted whitewash victo-
of Pavin’s four wild card picks on 7
September to book his place at Celtic
Manor in October.
In truth, Woods is a near certainty
to be offered a pick, although Pavin
refuses to guarantee him a place in
the side to be fair to the other players.
“Well, Corey texts me a lot so I’m
sure he’ll be texting me or calling me
and I’m sure we’ll be talking,” Woods
said. “I’m looking forward to it.
Hopefully, Corey will pick me on the
team.” He then joked: “I think I’ve got
a chance of helping out in the sin-
gles.”
nervous, and that surprised me as it
seemed he was fazed by nothing,
even when Bubba Watson went one
up in the play-off.
You have to sympathise with
Dustin Johnson for being penalised
two shots for grounding his club in
the bunker, but he doesn’t have a leg
to stand on in the rulebook. The play-
ers were clearly told beforehand that
any sand was designated as a bunker,
although in fairness to Dustin, it did-
n’t look much like a bunker.
Rory McIlroy flew the British flag
and couldn’t have played any better
in his quest for a first Major, only to
come up a shot short.
Tiger Woods’s tie for 28th at
Whistling Straits meant he was
unable to secure automatic qualifica-
tion on the US Ryder Cup team for
Celtic Manor in October.
He finished only 12th in the stand-
ings, but although he is struggling
ries in each of the last three series,
Ponting says his side can make history
once again when the 2010 campaign
gets underway on 25 November.
“It’s absolutely possible [to win 5-0],
there’s no reason why not,” Ponting
said. “It’s all in our hands. It’s how
well we play and how we take charge
of different situations. We’ve learned
from the mistakes we’ve made.”
Ponting admits he has been
impressed with England’s recent
form, but believes his side can make
their home advantage count.
“We know now that we’re a more
experienced and probably a better
team now than we were then,” he
added. “We put that together plus
we’re playing in our conditions. We
hope to win this series and win it well.”
US PGA runner-up Bubba Watson
climbed 15 spots to claim his place in
the American side, although Anthony
Kim and Zach Johnson were among
those to miss out.
Meanwhile, champion Martin
Kaymer guaranteed his place on the
European team by leaping up to third
in the standings, although Luke
Donald, Padraig Harrington and
Justin Rose are among a cluster of big
names also relying on wild cards
from captain Colin Montgomerie.
Harrington missed out on the top
nine by less than £1,000.
with his game at the moment, leav-
ing Tiger Woods out of the Ryder Cup
team would be like England’s 1966
team dropping Bobby Charlton.
It won’t be quite so easy for Colin
Montgomerie, however, who’s job got
even tougher with the likes of Luke
Donald now joining a host of big
names relying on a wild card.
It’s a big week for me also as I look
to revitalise my Seniors Tour season
Mint Murray geared up for
US Open after Toronto win
▲
TENNIS
BY JON COUCH
ANDY MURRAY believes he is on track
for a shot at the US Open title follow-
ing his impressive victory in the
Rogers Cup.
Murray toppled world No2 Roger
Federer 7-5, 7-5 to claim his first title
of 2010 in Toronto on Sunday having
already enjoyed a straight sets victory
over world No1 Rafael Nadal in
Saturday’s semi-final.
Now, the world No4 has his sights
set on turning his impressive hard-
court form into a first Grand Slam
title at Flushing Meadows this month.
“The US Open is the main goal but
USA STANDINGS
1. Phil Mickelson 6,095.063
2. Hunter Mahan 4,095.620
3. Bubba Watson 3,894.319
4. Jim Furyk 3,763.642
5. Steve Stricker 3,697.976
6. Dustin Johnson 3,573.804
7. Jeff Overton 3,533.148
8. Matt Kuchar 3,415.813
12. Tiger Woods 2,902.580
Kaymer, 25, won
his first Major at
Whistling Straits
on Sunday.
Picture: GETTY
at my home event, the Scottish Senior
Open. This is a very special tourna-
ment for me – as it is being played on
my own designed links course at
Fairmont St Andrews, so I should
know my way around it.
It’s also the ideal time to put right
some indifferent form and close the
gap on my old mate Bernhard Langer
at the top. My game feels at lot more
solid, so I’m looking forward to it.
this is a good start,” said Murray,
who continues his preparations
for the US Open at the
Cincinnati Masters this week. “I
played five days in a row from
Wednesday – all the matches
right in the heat of the day
so it was good for me physi-
cally. I’ll try to keep it going
in Cincinnati but the
most important thing is
getting ready for the US
Open.”
Of his victory in Toronto, the
Scot added: “It was one of the
best weeks I’ve had. Winning
a tournament is always great,
but it’s the first time I beat
CITYA.M. 17 AUGUST 2010
EUROPEAN STANDINGS
WORLD LIST
1 Lee Westwood (Eng) 422.0
2 Rory McIlroy (NI) 316.9
3 Martin Kaymer (Ger) 285.4
4 Graeme McDowell (NI) 249.3
NEXT 5 ON EURO LIST
5 Ian Poulter (Eng) 2,238,874
6 Ross Fisher (Eng) 1,708,614
7 Francesco Molinari (Ita) 1,612,747
8 M-A Jimenez (Spa) 1,499,775
9 Paul Casey (Eng) 1,487,776
Champion has
sympathy for
loser Johnson
GOLF
▲
MARTIN KAYMER offered words of
consolation to Dustin Johnson after
sealing his maiden Major title at the
US PGA Championship.
Johnson looked set to have earned
himself a place in the play-off with
Kaymer and fellow American Bubba
Watson after the trio finished on 11-
under-par at Whistling Straits.
But Johnson was then controversial-
ly penalised two shots after grounding
his club in what officials deemed to be
a bunker at the 18th.
German Kaymer went on to take
the title after beating Watson over the
three extra holes, but was full of sym-
pathy for the distraught Johnson.
“Obviously he didn’t know he was
not allowed to ground the club because
he did not think it was a bunker,” he
said. “Both Bubba and I said that it was
very sad to see because he played great
golf and deserved to be in the play-off.”
At the same time, Kaymer couldn’t
hide his delight at becoming only the
second German to win a Major title
after Bernhard Langer.
“It was an amazing feeling on 18
with two putts to win. I just won my
first Major and I am just on Tour for
four years. I have goosebumps.”
Roger and Rafa in the same tourna-
ment, which is probably the most
pleasing thing.”
Murray, meanwhile, says he is in
no hurry to appoint a new
coach after splitting with
Miles Maclagan last month.
“I’m not going to rush
into anything,” he said
“I’m sure after the US
Open I’ll look long and
hard at who I would like
to work with and what
I’d like to do moving for-
ward but I can’t see
myself making any
changes before the US
Open.”
CITYA.M. 17 AUGUST 2010 Sport | Football 19

Berbatov scored
United’s first goal of
the 2010-11 Premier
Results
League season; one of BARCLAYS PREMIER LEAGUE
Man Utd.........................(2) 3 Newcastle .........................(0) 0
two to be set up by Berbatov 33
Paul Scholes. Fletcher 41, Giggs 85 Att: 75,221
P W D L F A GD Pts
Picture: ACTION Chelsea 1 1 0 0 6 0 6 3
Blackpool 1 1 0 0 4 0 4 3
IMAGES Aston Villa 1 1 0 0 3 0 3 3
Man Utd 1 1 0 0 3 0 3 3
Wolves 1 1 0 0 2 1 1 3
Blackburn 1 1 0 0 1 0 1 3
Birminghm 1 0 1 0 2 2 0 1
Sunderland 1 0 1 0 2 2 0 1
Arsenal 1 0 1 0 1 1 0 1
Liverpool 1 0 1 0 1 1 0 1
Bolton 1 0 1 0 0 0 0 1
Fulham 1 0 1 0 0 0 0 1
Man City 1 0 1 0 0 0 0 1
Tottenham 1 0 1 0 0 0 0 1
Stoke 1 0 0 1 1 2 -1 0
Everton 1 0 0 1 0 1 -1 0
Newcastle 1 0 0 1 0 3 -3 0
West Ham 1 0 0 1 0 3 -3 0
Wigan 1 0 0 1 0 4 -4 0
West Brom 1 0 0 1 0 6 -6 0
CRICKET
FIRST ONE DAY INTERNATIONALS: Ireland v Holland
(Dublin); Ireland 275-6 (G C Wilson 113) v Holland 205-10
(T L W Cooper 68, A R White 4-44).Ireland beat Holland by
70 runs. Scotland v Afghanistan (Ayr); Scotland 224-9 (D F
Watts 55) v Afghanistan 225-1. Afghanistan beat Scotland
by 9 wickets.
TRIANGULAR TOURNAMENT: Sri Lanka v India (Dambulla);
Sri Lanka 170 v India 171-4 (V Sehwag 99no).India (2pts)
beat Sri Lanka by 6 wickets.
LV COUNTY CHAMPIONSHIP - DIVISION ONE: Durham v
Yorkshire (Emirates Durham ICG); Durham 213 (M J Di
Venuto 117no, P Mustard 53, A Shahzad 5-51) v
Yorkshire125-7 (38.0 overs). Nottinghamshire v
Warwickshire (Trent Bridge); Nottinghamshire 328 (A D
Brown 76, M A Wagh 54) v Warwickshire13-0 (6.0 overs).
DIVISION TWO: Glamorgan v Middlesex (The SWALEC
Stadium); Glamorgan 198(P T Collins 4-55) v Middlesex68-2
(21.0 overs). Gloucestershire v Northamptonshire
(Northampton); Gloucestershire 302 (W T S Porterfield 150,
C D J Dent 92, L M Daggett 4-57) v Northamptonshire4-2
(2.2 overs). Worcestershire v Surrey (New Road);
Worcestershire 308 (J G Cameron 95) v Surrey12-0 (3.0 overs).
CLYDESDALE BANK 40 - GROUP A: Somerset v Lancashire
(Taunton); Somerset 245-4 (J C Hildreth 72no, J C Buttler
64no, N R D Compton 59) v Lancashire 130(M Kartik 4-30).
Somerset (2pts) beat Lancashire by 115 runs.
GOLF

Berbatov on target as Red

US PGA CHAMPIONSHIP (Whistling Straits, Kohler,
Wisconsin)—FFinal rnd (USA unless stated, par 72): 277
Martin Kaymer (Ger) 72 68 67 70, Bubba Watson 68 71 70 68
(Kaymer won at three play-off hole). 278 Rory McIlroy (NIrl) 71
68 67 72, Zach Johnson 69 70 69 70. 279 Jason Dufner 73 66
69 71, Steve Elkington (Aus) 71 70 67 71, Dustin Johnson 71 68
67 73. 280 Camilo Villegas (Col) 71 71 70 68, Wen-chong Liang

Devils cruise to opening win

(Chn) 72 71 64 73.

and substitute Ryan Giggs enjoyed
MANCHESTER UTD 3 goal-scoring glory as United began
their Premier League campaign in
ominous fashion.
NEWCASTLE UTD 0 But it was 35-year-old Scholes who
orchestrated wave after wave of
attacks from the home side, setting
up both Berbatov and Giggs to beat
▲
hopes. He looks after himself and
that’s important. Last year was his
first without injury for a long time.”
Berbatov looked menacing and
Ferguson called his performance
“excellent”, while admitting the
Bulgarian forward should have added
to his low, diagonal 33rd-minute
player to have netted in all 19
Premier League seasons, and saw him
overtake Bryan Robson as the club’s
oldest scorer in the competition.
Fletcher was the other man to
pierce the visitors’ rearguard, the
Scotland midfielder turning and
rifling home a loose ball after Wayne
TODAY’S DIARY
(Football 7.45pm unless stated)
UEFA Champions Lge Play-off First Leg
Dynamo Kiev v Ajax ..................................................................................................
Rosenborg v FC Copenhagen..................................................................................
Sparta Prague v MSK Zilina ..................................................................................
Young Boys v Tottenham..........................................................................................
Zenit St Petersburg v Auxerre (5.30) ................................................................
UEFA Europa League Play-off Round First Leg
Besiktas v HJK Helsinki (5pm) ..............................................................................
Aris Salonika v FK Austria Vienna (5pm) ........................................................
CRICKET
Second One Day International: Scotland v Afghanistan (Ayr).
LV County Championship - Division One—day 2 of 4:
Durham v Yorkshire (Emirates Durham ICG),

PREMIER LEAGUE Nottinghamshire v Warwickshire (Trent Bridge). Division

BY FRANK DALLERES
MANCHESTER United manager Sir
Alex Ferguson praised Paul Scholes
after the evergreen midfielder mas-
terminded a nonchalant dissection of
Newcastle.
Dimitar Berbatov, Darren Fletcher
Steve Harper.
“Scholes showed at his age, you
don’t lose what he’s got: passing,
vision, and he’s still got a good
appetite for the game,” said Ferguson.
“The game always needs players
like that who can lift the game to a
different level and lift spectators’
strike, which came from a Scholes
through-ball.
Giggs was the other veteran to
shine, climbing off the bench to meet
Scholes’s floated pass with a down-
ward left-foot volley that arrowed
into Harper’s far corner. That 85th-
minute goal made Giggs the only
Rooney diverted a Patrice Evra cross
goal-wards just before half-time.
There was little sign of Rooney
doing likewise, however, and the
England star was withdrawn after an
hour, having extended his goal
drought for club and country to a
personal record 13 games.
Two—day 2 of 4: Glamorgan v Middlesex (The SWALEC
Stadium), Worcestershire v Surrey (New Road),
Northamptonshire v Gloucestershire (Northampton).
Clydesdale Bank 40 - Group C: Hampshire v Leicestershire
(The Rose Bowl).
SPORTS EDITOR JON COUCH
email sport@cityam.com

Ban stands for Spurs begin Investec deal Indian investor in a hurry
Cole as Reds
decline appeal with Young Boys fixture to finalise Blackburn deal
Software company Autonomy last transfer window and I would love to
▲

CHAMPIONS LEAGUE
▲

PREMIER LEAGUE
month paid £20m to sponsor the support his ambitions.”
PREMIER LEAGUE TOTTENHAM have signed an innova- north London club’s shirts in Premier AHASAN Ali Syed, the Indian lawyer Syed has said he is ready to plough
▲

JOE COLE will miss Liverpool’s next
three Premier League matches after
the club opted not to appeal his send-
ing off against Arsenal on Sunday.
Debutant Cole saw red for a reck-
less challenge on Laurent Koscielny
during first half injury-time of the 1-1
draw at Anfield.
Meanwhile the Reds are poised to
complete the signing of goalkeeper
Brad Jones from Middlesbrough after
agreeing a fee of around £2.3m. The
Australia international, 28, qualifies
as a home-grown player.
tive two-year deal with Investec that
will see the bank sponsor their shirts
in cup matches only.
Spurs’ jerseys will bear the Investec
name for the first time this evening,
when they take on Young Boys of
Bern in the first leg of a Champions
League qualifying tie.
It is not known how much the
London and Johannesburg-listed
bank paid for the deal, but it will gain
them far more exposure if Harry
Redknapp’s men can overcome their
Swiss opponents and reach the com-
petition’s group stage.
League matches over the next two
seasons. The split sponsorship deal is
thought to be the first of its kind in
the top flight.
Despite qualification being worth
more than £10m to Spurs, Redknapp
played down the consequences of fail-
ing to beat Young Boys.
“What are we going to do, commit
suicide or something?” Redknapp
said. “Listening to everybody, we’ll
end up hanging ourselves. If we play
at our best, we’ve got a great chance.
Nobody expected us to get here in the
first place last year.”
hoping to buy Blackburn, insists he is
eager to thrash out a deal before the
end of the month.
Western Gulf Advisory, Syed’s
investment vehicle, has entered an
exclusive four-week period of due dili-
gence with Rovers.
And the 36-year-old, who studied in
London, hopes to wrap up the pur-
chase in time to give Sam Allardyce a
late run at the transfer market.
“I am very keen to move very fast
and buy this club at the earliest
moment,” said Syed. “I am aware that
Big Sam has big ambitions for this
a combined £300m into buying the
club, paying off debts and funding
new signings. But despite that signif-
icant bill, he still regards the outlay as
good value.
“My investments are always good
assets who are undervalued and who
have huge potential for a turnaround
situation,” he added.
“I have been doing this for 14 years
now and Blackburn fitted the bill. I
have been presented with a lot of
clubs, but Blackburn really came to
my attention because it suits my
investment philosophy.”