Issue 1,221 Thursday 16 September 2010

BUSINESS WITH PERSONALITY FREE

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FINANCIAL SERVICES
BY KATIE HOPE
RADICAL curbs on short selling and deriva-
DETAILS
tives trading proposed by the European
Commission to bring the multi-trillion dol-
lar industry in from “Wild West territory”
ON P23
were condemned as costly and potentially
uncompetitive by hedge funds yesterday.
The proposals, released to coincide with
the collapse of Lehman Brothers two years
ago, require increased disclosure of short
selling positions against companies and gov-
ernment debt as well as handing the
European Securities and Markets Authority,
one of the EU’s newly created financial reg-
ulators, the power to temporarily ban short
selling altogether.
Investors will need to disclose short posi-
tions to regulators if they exceed 0.2 per
cent of a company’s issued share capital,
and to the rest of the market if the short
position exceeds 0.5 per cent.
The proposals also cover credit-default
swaps and the clearing of over-the-counter
derivatives – a $600 trillion (£384 trillion)
market. In a bid to reduce counterparty risk,
most derivatives trades will have to be rout-
ed through centralised clearing houses pro-
viding a safety net in the event of a collapse,
and ensuring regulators know how much
money firms owe each other. This forced
transparency, will challenge the dominance
of the roughly half a dozen large banks,
including Deutsche Bank, Barclays, Eu financial services commissioner Michel
Goldman Sachs, JP Morgan, Bank of Barnier said nobody will escape the new rules:
America and Citigroup, which currently “ No market, no player, must remain outside
design derivatives for customers and trade this set of regulations.” Picture: REUTERS
them among themselves.
Michel Barnier, the EU’s financial services measures were being brought in worldwide. While Kevin McNulty, head of the
commissioner, insisted that the regulatory Andrew Baker from the Alternative International Securities Lending Association,
overhaul was vital for the future stability of Investment Management Association wel- said the proposed thresholds were too low and
Europe’s financial system. comed the standardisation across Europe, could encourage investors to curb their trades to
“No financial market can afford to but slammed short position reporting to the stay beneath those levels, reducing liquidity and
remain a Wild West territory,” he said. market as “uncompetitive.” ironically creating riskier trading conditions.
Barnier also sought to dampen fears that Darren Fox, a partner at Simmons & The regulations, which still need to be
the new rules could drive dealers away from Simmons, said the disclosure requirements approved by EU member states and the
the City, where 40 per cent of the global would “potentially be very expensive” for European parliament, are expected to be in
derivatives trade is based, saying similar firms and trading venues. place by July 2012. EU RULES IN DETAIL: P5

POLICE WARN ON IRA THREAT

TERROR informing the police of anything suspicious, of bankers and the institutions they serve in
▲

BY VICTORIA BATES
CITY banks yesterday received a stark warn-
ing from the City of London Police that the
threat of terrorism is “real and ever-pres-
ent”, after the Real IRA warned it had made
banks and their staff a potential target for
attack.
The force said that the official terrorist
threat level had not been raised because of
the Real IRA’s warning, though it reiterated
calls for vigilance on the part of the public as
“one of the best ways of preventing and
detecting crime”.
Its guidelines for City workers include
however seemingly insignificant, as well as
keeping alert to the threat of postal bombs –
including unusual-smelling or heavy pack-
ages, or those which are addressed incorrect-
ly, bear too many stamps for the weight or
have grease stains on the envelope or wrap-
ping.
A source at one large firm said the organi-
sation had made sure to make staff aware of
the threat, adding that most of the UK’s
biggest banks kept up a regular dialogue
with the security services over potential
threats.
Leaders of the republican terrorist group
told the Guardian newspaper that the “role
financing Britain’s colonial and capitalist
system has not gone unnoticed”.
However, the Real IRA – which has around
100 activists – does not have the same fire-
power as the Provisional IRA, which repeat-
edly targeted London’s financial community
in the 1990s.
In April 1993, a bomb planted in
Bishopsgate exploded, killing one person
and injuring dozens more, while Canary
Wharf was also targeted by the terror group
a few years later.
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 2 News
We must unleash the private sector
EDITOR’S LETTER
ALLISTER HEATH
IF YOU want to know why the loom-
ing cutbacks to the public sector will
be so painful, look no further than
what is happening to wage bills. It is
extraordinary that at a time when
savings are desperately needed, state
sector wages are still growing much
faster than those in the private sector.
In the year to July, total pay growth
in the private sector stood at 1.2 per
cent, compared with 2.7 per cent in
the public sector. This makes no
sense: a pay freeze in the public sector
would allow tens of thousands of jobs
to be saved. What matters is the total
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
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WHAT THE OTHER PAPERS SAY THIS MORNING
BOND STRATEGY LED TO BIG WIN
AFTER LEHMAN
The collapse of Lehman Brothers
and central banks’ unorthodox
monetary policies distorted markets
to create some of the biggest pricing
anomalies ever documented in bond
trading, according to research from
leading US academics. A paper from
the US National Bureau of Economic
Research claims to have identified
by academic research in fixed
income markets the “largest arbi-
trage ever”.
BA CHIEF WARNS EUROPE OF THREAT
FROM MIDEAST AIRLINES
Europe has failed to recognise the “sig-
nificant threat” of ambitious Middle
Eastern airlines, the head of British
Airways has warned. Willie Walsh told
industry leaders: “We have been very
slow in the UK and in Europe to recog-
nise the new competitive threat.
wage bill, the number of staff multi-
plied by all of their costs – and the
fact that this is still going up means
that job-cutting will have to be even
harsher.
State jobs are starting to go down
but not yet by much. Public sector
employment peaked at 6.097m – on
the official payroll, omitting contrac-
tors, agency workers, GPs, freelancers
and others who are state sector
employees in all but name – in the
fourth quarter of last year. The subse-
quent two quarters have seen
declines; the number now stands at
6.051m.
So far, the private sector has easily
compensated for this: yesterday’s fig-
ures from the Office for National
Statistics show a huge jump in private
employment. Despite the small cuts
in the state sector, total jobs increased
at the fastest quarterly rate since May
1989, when the economy was in an
other unsustainable bubble. Private
jobs increased by 308,000 (1.4 per
cent), a very healthy number, on the
Ofcom could
probe BSkyB
MEDIA
▲
BY MATTHEW WEST
OFCOM could be asked to review
News Corporation’s bid for BSkyB if a
formal offer is made with business
secretary Vince Cable likely to issue
an “intervention notice”.
The notice would order the watch-
dog to look at the impact of the
takeover. News Corporation wants to
take over the remaining 61 per cent
of BSkyB it does not own.
The corporation has already made
two unofficial bids for BSkyB, the
first valued the company at 675p per
share, the second at 700p per share.
Both were rejected by the broad-
caster, which values itself at above
800p per share.
News Corp is owned by Rupert
Murdoch, and operates News
International, which owns the Sun,
CARDINAL COMPARES UK TO THIRD
WORLD
The start of Pope Benedict XVI ‘s state
visit to Britain starting on Thursday
has been marred by one of his senior
advisers, who has described the UK as
“a third world country” marked by a
“new and aggressive atheism”. As the
Pope prepares for what will be the
first official visit ever made to the UK
by a Catholic pontiff, Cardinal
Walter Kasper, a former adviser on
relations with other denominations,
triggered controversy by making the
comments in a German magazine
article.
CAMBRIDGE TOPS UNIVERSITY RICH
LIST
The University of Cambridge is now
comfortably Britain’s richest univer-
sity, confirming its place in the glob-
al top 10 of academic endowments
with £4bn, after a strong investment
performance and a billion-pound
fundraising drive.
face of it at least. This easily compen-
sated for the 22,000 (or 0.4 per cent)
drop in public sector employment.
The main caveat is that the quarter-
ly increase in employment was main-
ly driven by part-time workers, which
increased by 166,000 on the quarter to
reach 7.93m, the highest figure on
record. However, full-time workers
increased by 121,000 on the quarter to
reach 21.23m, not a bad result. Part-
time workers now account for 27.2
per cent of total employment.
In the second quarter of 2010, the
public sector accounted for 20.8 per
cent of total employment in the
United Kingdom, down from 21.0 per
cent in the first quarter (these figures
probably underestimate the real
reach of the public sector by around
three percentage points or so).
Those who claim that there is no
way that the private sector can create
jobs to replace the 600,000 or so that
will probably be lost in the public sec-
tor over the next five years are too pes-
simistic. It will be tough but it is
the News of the World and the Times
and Sunday Times newspapers in the
UK.
A Department for Business
spokesperson told the BBC: “The sec-
retary of state has not made a deci-
sion on this matter – indeed at this
stage there is not even a decision for
him to take. We will not be speculat-
ing on this issue.”
A referral to Ofcom would charge it
with looking at whether News Corp’s
complete ownership of BSkyB would
restrict the “plurality” and number of
voices within the media.
Rupert Murdoch has
already made two
unofficial offers to buy
the remaining 61 per
cent of BSkyB
REVENUE FEELS THE HEAT FOR FIASCO
OF UNDERPAID TAXES
The chairman of the Treasury
Select Committee has launched a
scathing attack on HM Revenue &
Customs over its handling of the
tax fiasco that has left millions fac-
ing claims for backdated tax.
Andrew Tyrie told The Times that
HMRC had failed to prepare itself to
deal with taxpayer concern.
AVIVA CALLS IN HEADHUNTERS TO
SEEK OUT NEW CHAIRMAN
Aviva has begun the search for a
new chairman to replace Lord
Sharman, opening up a further
vacancy at the top of corporate
Britain, The Times has learnt.
Britain’s second-largest insurer has
appointed several headhunters to
draw up a list of potential replace-
ments for Lord Sharman, 67, who
has held the role for five years.
perfectly possible (and in fact likely).
The economy will probably grow by
just 1.7 per cent this year yet we will
finish the year with more full-time
private jobs than we started it.
But that’s hardly a great result. We
need much greater private sector job
creation than we are likely to get. The
problem is not that the public sector
is being cut (that is essential to avoid
national bankruptcy). The problem is
that the private sector is too weak, too
burdened by ever more costly rules
and costs. Shrinking the state will lib-
erate some resources for the private
sector; but what we also need is an
ambitious supply-side, pro-entrepre-
neur programme of marginal tax
cuts, deregulation and vigorous wel-
fare reform to jolt the private sector
and labour market out of their stu-
por. The private sector needs an injec-
tion of fresh capitalist energy to
perform to its true potential. Let us
hope somebody is listening in
Downing Street.
allister.heath@cityam.com
tMercedes-Benz’s UK offices have been probed
Carmakers face OFT probe
AUTOMOTIVE
▲
BY HARRY BANKS
A NUMBER of Europe’s best-known
vehicle makers, including Mercedes-
Benz, are at the centre of a price fix-
ing investigation by the Office of Fair
Trading (OFT).
The OFT last night confirmed that
it had launched both criminal and
civil investigations into suspected
price-fixing by major lorry manufac-
turers in the UK. The OFT said it was
looking into suspected cartel activity,
CATTLES BONDHOLDERS ENDS
RESTRUCTURING TALKS
Cattles, the stricken door-to-door
lender, said on Wednesday that talks
with its group of bondholders over a
restructuring had broken down. The
company said in a statement on
Wednesday that it would continue
talks with other key creditors to find
a solution.
BANK OF JAPAN RILES US WITH YEN
MOVE
Japan has launched a huge inter-
vention in the foreign exchange
market for the first time since 2004
to stem the rise of the yen and head
off a deflation spiral, prompting
harsh protests from top US
Democrats on Capitol Hill. The
move is the latest dramatic twist in
a world where a growing number of
countries are seeking an economic
edge.
CITYA.M. 16 SEPTEMBER 2010
Rok drafts in
PwC ahead of
refinance talks
▲
CONSTRUCTION
ROK is understood to be setting up
refinancing discussions with its
lenders, a month after the building
group issued its second profit warn-
ing of the year.
A company spokesman said it was
not at risk of breaching its covenants,
and said the move to renegotiate its
debt was an indication it was confi-
dent of meeting market expectations
of profits for the year to 31 December.
“We have commenced discussions
with our banks with a view to renew-
ing our banking facilities,” the com-
pany said. “The timing of that
refinancing is in line with the
requirement to put new facilities in
place in the early part of 2011.”
The group’s banks are drafting in
PricewaterhouseCoopers (PWC) to ver-
ify Rok’s accounts ahead of the talks.
Picture: GETTY
which was at an early stage.
As part of the probe, the OFT has
visited the UK offices of Daimler’s
Mercedes-Benz as part of a broad-
ranging investigation into the pricing
of trucks. It has also requested infor-
mation from Sweden’s Scania and
Germany’s MAN as part of the probe.
The probes are being carried out
under both the Enterprise Act 2002
and the Competition Act 1998. Proven
price-fixing carries big fines for firms
and criminal prosecutions against
executives.
BA CHIEF SAYS LAN MERGER ISN'T
THREAT TO ONEWORLD
British Airways PLC Chief Executive
Willie Walsh said Chilean carrier
LAN Airlines SA's pending merger
with Brazil's TAM S/A isn't a threat
to the Oneworld airline alliance,
which includes BA. “LAN are very
much core members of Oneworld,”
Walsh said in an interview. BA, LAN,
AMR Corp’s American Airlines and
11 other airlines belong to
Oneworld, through which they
cooperate on marketing and strate-
gic planning.
RUSSIA, NORWAY RESOLVE DISPUTE
OVER MARITIME BORDER
Russia and Norway signed an agree-
ment Wednesday on their maritime
border in the energy-rich Barents Sea,
ending a dispute that has dragged on
for decades. The countries said the
deal was significant.
CITYA.M. 16 SEPTEMBER 2010
Cable’s power
grab threat to
share listings
▲
REGULATION
BY VICTORIA BATES
LONDON’S competitiveness as an
attractive company listing destina-
tion is in danger of being jeopardised
by political gesturing between busi-
ness secretary Vince Cable and the
Treasury, one of the UK’s most senior
investment bankers has warned.
Sir Laurie Magnus, who was yester-
day appointed chairman of Lexicon
Partners, said plans to separate the
regulation of primary and secondary
capital raising markets would make
London “far more difficult to sell” to
firms looking to list in the capital.
“The problem is partly that the
coalition doesn’t fully understand
what it is doing and the conse-
quences,” Magnus said. “It seems
there’s a political turf war afoot
between Vince Cable and the
Treasury.”
He added: “We’re sleepwalking
towards making life much more diffi-
cult for ourselves. I just hope they
wake up and realise that.”
Magnus, a member of the UK
Listing Authority Advisory
Committee spoke out in support of
the London Stock Exchange chief
executive Xavier Rolet. Rolet has
warned that the rules would “severe-
ly” impact London’s competitiveness
and urged other concerned City prac-
titioners to speak out against them.
The government’s proposals would
see regulation of primary listings
pass to a strengthened Financial
Reporting Council (FRC), which
would be overseen by Cable’s depart-
ment, while secondary capital rais-
ings would fall under the jurisdiction
of the new Consumer Protection and
Markets Authority (CPMA).
The City is also concerned that the
CPMA has the UK’s only vote on
Europe’s new super-regulator, the
European Securities and Markets
Authority (ESMA).“If this goes ahead,
the UK’s voice in Europe will be ham-
strung,” Magnus said.
The government’s consultation
process is due to conclude on 18
October.
News 3
Female workers
allege bias at
Goldman Sachs
COURTS
▲
THREE women who formerly worked
for Goldman Sachs are suing the Wall
Street giant for what they say is ram-
pant gender discrimination that
unfairly favours men in pay and pro-
motions.
The lawsuit filed yesterday alleges
that Goldman has violated federal
and New York City laws by engaging
in a systematic “pattern and practice”
of discrimination against female pro-
fessionals at the firm. They are asking
a federal judge to certify the case as a
class-action suit on behalf of the
firm’s female employees.
The three — a former vice presi-
dent, a managing director and an
associate — also are seeking damages
from Goldman for emotional distress
and humiliation they say they've suf-
fered and for lost income.
And they want the firm to put in
new policies for pay and promotion
decisions.
“We believe this suit is without
merit,” Goldman spokesman Lucas
van Praag in New York said in a state-
ment.
It added: “People are critical to our
business, and we make extraordinary
efforts to recruit, develop and retain
outstanding women professionals.”
The suit was filed in the US District
Business secretary Vince Cable is accused by the City of market meddling Picture: GETTY Court in New York.
LONDON
CITY TO
COPENHAGEN
FROM £65
ONE WAY
With a flight time of less than
2 hours and a check in time of
only 15 minutes, you’ll hope the
rest of your stay doesn’t go as
quickly. Book at ba.com
CITYA.M. 16 SEPTEMBER 2010 News 5

New EU rules
AT A GLANCE | EUROPEAN SHORT SELLING PROPOSALS
● If the European parliament and Lehman Brothers, by stepping in should company concerned.
27member states agree, the two laws to either buyer or seller to a trade go bust.
reform short-selling and derivatives will ●If a seller cannot close a short sale
come into effect in 2012. Negotiations ● The proposals make it mandatory to after four days by coming up with the

on short sales with countries and lawmakers, however,

could water down the rules.
● Commission officials want to intro-
duce standardisation to the derivatives
report all trading to central data banks or
repositories, which will make it possible
for regulators to keep tabs on the market
●Industrial companies will be given
assets he promised to sell, the regulator
can force him to pay the buyer cash
instead. A fine can also be imposed.
● The markets watchdog will also be

trade in myth
markets such as interest-rate swaps that
bet on borrowing rates. This would make
trading more transparent and easier to
move from over-the-counter to
exchanges, where it can be easily moni-
tored.
● The rules will ask derivative traders to
Struggling governments and firms like to pass the use clearing houses which provide a safe-
ty net in the event of a collapse like
buck for their own failings, explains Marc Sidwell
exemptions, provided their use of deriva-
tives does not pass a threshold that will
be set up the new European supervisor.
●All trades involving short-selling will be
flagged as such. Smaller short positions
will be shown to the regulators while
traders will be obliged to publicly post
big short positions – where the value tops
0.5 per cent of the market value of the
able to prohibit short-selling for three
months at a time. Regulators can also
impose a one-day ban if the price of a
financial instrument suddenly dips.
●The rules also introduce tight controls
for "naked" short selling, when sellers
have not arranged to borrow the assets
such as company stock they promised to
sell.

T
HE EUROPEAN Union’s new
proposals on short selling
address a practice that suppos-
edly contributed to recent
financial crises. But there is still too
much misunderstanding of short
selling, and these wide new powers
bring dangers of their own.
It is easy to point the finger of
blame at those who borrow shares
they believe will fall and buy them
back at a profit. Finding short sellers
at the scene of every disaster, naïve
observers confuse correlation with
causation, and ignore the valuable
service provided in the early discov-
ery of overvalued stock.
Politicians attacked short sellers as
“spivs” after HBOS shares plunged in
2008, leading to a takeover by Lloyds.
But it soon emerged that borrowed
stock, a clear measure of short sell-
ing, was just three per cent of avail-
able shares, a level typical for the UK.
The Lehman bankruptcy report by
Anton Valukas this March found that
Lehman’s available liquidity and the
actions of its senior executives and
auditor were central to its collapse –
yet former Lehman CEO Richard Fuld
wrongly blamed short sellers and
sought a naked short selling ban
before bankruptcy was filed.
Short selling was actively involved
in a market collapse this May, but
that was because the German govern-
ment banned some kinds of short
selling overnight. Billions were
wiped off the major European
indices, with the FTSE falling 2.8 per
cent. The new EU regulations restrict
such “rogue” actions at a national
level. But if the result is pan-
European bans of uncertain length,
it will be scant comfort.
There’s little evidence that bans
help. Research on the SEC’s 2008 ban
by Ekkehar Boehmer, Charles Jones
and Xiaoyan Zhang (2009) found no
clear evidence that it helped stem a
collapse in share prices. Alessandro
Beber and Marco Pagano (2010)
looked across all the global bans and
concluded “the overall evidence indi-
cates that short-selling bans have at
best left stock prices unaffected, and
at worst may have contributed to
their decline.”
Despite the eagerness of many to
blame the messenger, short sellers
spot companies with real problems.
Cracking down on them won’t make
these problems go away – they will
just take longer to become public.

ANALYST VIEWS: WHAT DO YOU THINK OF

THE NEW REGULATIONS? Interviews by Matthew West

FOLAKE SHASANYA | DIRECTOR AFME

“ “We welcome the proposals to help increase trans-

parency and reduce credit and operational risk in the mar-

”
ket. But more work will be needed to analyse whether these
proposals could help mitigate systemic risk.”

JAMES COILEY| PARTNER AT ASHURST

“ Although the text of the proposal is balanced, it per-

mits national regulators and the European Securities and

”
Markets Authority to ban entry into credit default swaps on
as wide or as narrow a basis as they choose.

ANDREW BAKER |CHIEF EXECUTIVE AIMA

“ In the interests of international regulatory consis-

tency it is desirable that the Commission is harmonising

”
rules in both these fields. A common regime that concen-
trates on reporting is the way forward.

JUSTIN URQUART STEWART | SEVEN INVESTMENT

“ I have no problem with more transparency, so that

people can see we are not taking unnecessary risks that

”
cause systemic failures. But it is also essential that they
realise these things are essential tools of the trade.
 6 News
First Quantum boss Clive Newall is taking action against ENRC
Priory looks
healthy for
buyout bids
▲
PRIVATE EQUITY
BY HARRY BANKS
A HANDFUL of buyout firms are
understood to be submitting indica-
tive bids for mental-health specialist
the Priory Group, which seller Royal
Bank of Scotland (RBS) hopes could
fetch about £1bn.
Advent International, Bain Capital,
Blackstone and Cinven were all
thought to be planning to submit non-
binding bids by yesterday’s deadline.
The Carlyle Group and KKR are also
thought to have also examined the
business, but it was unclear whether
they intend to lodge bids.
The private equity firms, RBS and
the Priory all declined to comment.
The Priory operates more than 50
hospitals, schools and care homes in
Britain. It is best known for treating
celebrities including “Britain’s Got
Talent” star Susan Boyle, Libertines
singer Pete Doherty, and comedienne
Ruby Wax, who went on to write a
show about depression, dubbed “Live
From the Priory”.
It is being sold as RBS sheds non-core
assets to slim its unwieldy balance
sheet. Priory expects to generate earn-
ings before interest, tax, depreciation
and amortisation of about £95m in
the year to December, a source previ-
ously said.
Banks would be willing to lend
about 5.5 times that amount, the
source said, leaving a private equity
buyer to stump up about £500m in
equity.
The business is viewed as a strong
performer with a good management
team, meaning a new private equity
buyer may have little more to add to
the business and could need to target
lower returns, another source said.
Buyout firms usually target net
returns of 20 to 25 per cent, but have
been prepared recently to put in more
equity and accept lower returns for
businesses they perceive to be low-risk.
Deutsche Telekom chief faced with probe Greece rejects debt doubts
▲
TELECOMMUNICATIONS
BY HARRY BANKS
DEUTSCHE TELEKOM said its chief
executive Rene Obermann is the only
top company official among the eight
people facing investigation in a sus-
pected bribery case in its eastern
Europe operations.
In a show of support however, the
company started negotiations this
month with Obermann to extend his
Picture: REUTERS
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contract, which expires in November
2011, according to a person with
knowledge of the matter .
Deutsche Telekom declined to com-
ment.
Telekom’s top lawyer, Manfred
Balz, said that Obermann was not the
target of a US investigation that trig-
gered searches in Germany but was
being questioned as a witness in the
US probe, Balz told a conference call,
adding no other members of top
ENRC faces legal action
▲
MINING
BY HARRY BANKS
FIRST QUANTUM MINERALS is suing
units of Eurasian Natural Resources
Corp which bought rights to Kolwezi,
a disputed copper project, after
Democratic Republic of Congo with-
drew First Quantum’s licence.
First Quantum will also inititate
international arbitration proceedings
management or the supervisory
board were involved.
German prosecutors are investigat-
ing eight people including Obermann
at the request of US authorities who
are looking into suspected bribery in
Macedonia and Montenegro.
The WirtschaftsWoche magazine
reported on Monday that prosecutors
searched Obermann's home and con-
fiscated documents last month as
part of the investigation.
shortly over Frontier, a second project
in the DRC, as the miner fights for
the return of assets in the country,
the group’s president, Clive Newall
said.
The miner suspended operations at
Frontier last month after being
stripped of its exploration permit, a
move it said was retribution for enter-
ing into arbitration over Kolwezi.
A spokeswoman for FTSE 100 miner
EUROZONE ECONOMY
GREECE’S finance minister has
strongly rejected the idea the country
will be forced to restructure its debts,
saying that a default would break the
eurozone.
On a two-day visit to London, Paris
and Frankfurt to convince investors
Greece is beginning to recover from
its economic crisis, George
Papaconstantinou told the Financial
CITYA.M. 16 SEPTEMBER 2010
ENRC reiterated comments made last
week that the miner would vigorous-
ly defend any legal action. Newall said
the amount of compensation First
Quantum was seeking over Kolwezi
would emerge during the proceed-
ings. “We are claiming for essentially
the fair value of the project which
will be in the billions, but just how
much depends on prevailing metal
prices,” he said.
Terra Firma
case set for
fraud trial
▲
PRIVATE EQUITY
BY MATTHEW WEST
GUY Hands, the founder of private
equity group Terra Firma, was yester-
day granted permission by a judge in
New York to sue US bank Citigroup
for fraud over his £4bn acquisition of
the record label EMI.
Hands alleges Citigroup misled
him into believing there was another
bidder for the troubled record label
during the auction process in 2007
causing him to overpay.
The record label’s value has halved
to around £2bn since then.
Hands decided to sue Citi last year
after falling out with the bank when
it refused to write off some of the
£3bn of debt he used to finance the
deal.
While Judge Rakoff threw out two
of Terra Firma’s claims he ruled the
firm could press ahead on two other
counts of fraud despite Citi’s attempt
to have the entire case thrown out.
The case will now go to a jury trial
with the first hearing slated for 18
October.
A Terra Firma spokesman said: “We
are pleased that judge Rakoff has
rejected Citi’s attempt to avoid a trial
on both of Terra Firma’s fraud claims.
We look forward to the trial on 18
October when Citi will have to answer
to a group of New York Jurors”.
Citigroup said: "We are pleased that
Judge Rakoff has dismissed two of the
four claims in the case. We believe
this case is entirely without merit,
and we are confident that Citi will
prevail at trial on the remaining two
claims."
While EMI is a British company
Hands opted for the case to be heard
in the US because many of Terra
Firma’s investors are based in
America. Hands, who is a tax exile,
also told the court he did not want to
jeopardise his tax status by having
the case heard in London.
Times a Greek default would spark
selling in other so-called peripheral
bond markets such as Portugal and
Ireland.
The minister’s message to investors
was backed up by officials from the
International Monetary Fund,
European Union and the European
Central Bank.
One senior IMF official said “no
one would benefit from a Greek
default”.
 8 News
Part time jobs
fuel surge in
employment
▲
UK ECONOMY
BY JESSICA MEAD
THE NUMBER of people in employ-
ment grew at the fastest rate since
records began in the three months to
July, official figures revealed yester-
day – boosted by a surge in part-time
workers as employers cut back on
working hours.
Employment for the quarter rose
by 286,000 to 29.16m, representing a
0.4 per cent rise in the rate to 70.7 per
cent. This is the biggest quarterly rise
since 1971, according to the Office for
National Statistics (ONS).
However, the figure was boosted by
166,000 part-time jobs, continuing a
trend during the year for employers
to rely increasingly on part-time
workers.
Part-time workers now account for
27.2 per cent of total employment, up
from 25.4 per cent as of mid-2008.
Despite the rise in employment,
the number of Britons claiming job-
less benefits in August rose for the
first time since December 2009.
CITY VIEWS: WHAT ARE THE PROSPECTS FOR
THE JOB MARKET IN THE NEXT YEAR?
Overall, the claimant count rose by
2,300 last month, taking the total to
1.466m, and ending seven consecu-
tive months of a decline in those
claiming Job Seeker’s Allowance. This
increase was entirely borne by
women, the figures showed.
The mixed picture painted by yes-
terday’s data, especially the more
recent claimant count figures, disap-
pointed economists.
“The jump in part-time employ-
ment indicates that many companies
are reluctant to add full-time workers
amid serious concerns over the sus-
tainability and longer-term strength
of the recovery,” said economist
Howard Archer at IHS Global Insight.
Although earnings growth picked
up, it still remained subdued.
Headline average weekly earnings
rose 1.5 per cent in the three months
to July up from 1.1 per cent in the
quarter to June.
But stripping out the more volatile
bonus component, core earnings
growth rose to 1.8 per cent in July , a
little stronger than expected.
CITYA.M. 16 SEPTEMBER 2010
Lloyds launches
DAVID SAHNER |
Interviews by Alasdair Peoples and Marion Dakers
a thirty-year
sterling bond
HEATH LAMBERT
“I think it’s picking up slowly; I’m not convinced
it will have improved much by the end of the
year. If you want a job now you have to BANKING
▲
accept a lower salary and worse con- LLOYDS Banking Group launched a
rare 30-year senior sterling bond yes-
ditions generally, but we’ll have to terday, capitalising on the upbeat
get used to that.” tone of the credit markets and on
demand from pension funds and
insurers for long-dated sterling assets.
The bond deal is the bank’s first
JAMES PARRATT | MILLER INSURANCE ever sterling issue with a 30-year
maturity, an official with the bank
said.
“I think unemployment rates in the City are rel- Initial guidance on the bond was at
atively stable, at least for this year. I don’t think UK gilts plus around 250 basis points.
“There is natural demand from UK
it will get a huge amount worse. Currently the pension funds and insurers because
they have long-duration liabilities
banking sector seems to be rejuvenat- such as annuities,” said one financial
ed, and is employing more people, sector analyst at a UK-based asset
manager.
but it’s not the same everywhere.” Lloyds has done relatively few sen-
ior bond deals this year, but this
month has joined in a rush by
MARK ABBOTT | PCR LTD European banks to raise cash via the
bond markets.
Banks have seized the chance to tap
“I work in recruitment, and the markets are cash-rich investors and take advan-
tage of positive sentiment towards
getting stronger. After cutbacks during the credit versus equities due to fears of a
recession, some sectors are hiring again, and fresh economic slowdown.
At the start of September, for exam-
as long as there isn't a double-dip it will ple, Lloyds raised £1.04bn with a five
continue. But nationally things might year senior bond at a spread of 200
basis points over mid-swaps.
get worse before they get better.” The managing banks on the 30-year
deal are Lloyds, Barclays and HSB.
CITYA.M. 16 SEPTEMBER 2010
King tells the unions
cuts are only option
POLITICS
▲
BY DAVID CROW
MERVYN King launched a broad-
side against bankers’ bonuses yes-
terday, telling unions they were
right to be angry at the industry –
but he warned there was no alter-
native to swingeing spending cuts
to reduce the deficit.
Speaking at the Trades Union
Congress annual conference in
Manchester, the Bank of England
governor said the economic crisis
rested squarely on the shoulders of
the banking industry.
He said: “Remuneration, especial-
ly the structure of financial sector
THE PEOPLE’S SUPERMARKET
TESCO chief executive Sir Terry Leahy was on hand at the Economist Emerging
Markets Summit in London yesterday to hear his designated successor Philip
Clarke predict China will become profitable for the retailer during his tenure.
The supermarket giant is planning to invest around £2bn into developing shop-
ping malls in the People’s Republic.
bonuses, encouraged excessive risk-
taking... your members, and indeed
the businesses which employ them,
are entitled to be angry.”
However, King – who will soon
have overall responsibility for bank
regulation – said that clamping
down on bonuses was not the
answer, because “if banks want to
pay this money to those individuals
they will find a way to do it”.
The governor also fired a warn-
ing shot across the bow of the
unions, insisting that savage spend-
ing cuts and public sector job losses
were essential if Britain is to reduce
its “unsustainable” deficit.
He said: “It is vital for any govern-
Picture: GETTY
News 9
ment to set out and commit to a
clear and credible plan for reducing
the deficit. The current plan is to
reduce the deficit steadily over five
years – a more gradual fiscal tight-
ening than in some other coun-
tries. As a result of a failure to put
such a plan in place sooner, some
euro-area countries have found... a
much more rapid adjustment
being forced upon them.”
Unions reacted angrily to King’s
comments. Paul Kenny, GMB gener-
al secretary, said: “His analysis of
the excesses of the banking system
reminds me of Jessie James warn-
ing people in the Wild West about
the dangers of train robberies.”
BoE rate setter
says inflation is
too high in UK
▲
ECONOMY
DAVID MILES, the Bank of England’s
rate setter, warned yesterday that UK
inflation is uncomfortably high.
“I am particularly concerned about
inflationary pressures, since it is our
job to keep the rate close to the two
per cent target and it is uncomfort-
ably above that at present,” said Miles
yesterday.
Miles said there still remained a
“great deal of uncertainty” over
whether spare capacity in the econo-
my could help to alleviate inflation-
ary pressures.
His remarks come as figures yester-
day showed that the Consumer Price
Index has remained above three per
cent for the sixth consecutive month.
Inflation has continued to sit above
the Bank’s two per cent target for
almost a year.
Meanwhile, bread, clothes and
cereal prices have continued to rise
during August.
 10 News CITYA.M. 16 SEPTEMBER 2010

Abu Dhabi buys

Yeo claims BP more oil assets
was victim of in North Sea

over-reaction
ENERGY

▲
STATE-controlled Abu Dhabi National
Energy Co (TAQA) announced another
purchase of mature North Sea oil
assets yesterday in a move analysts
said could increase its UK oil output
by almost 20 per cent.
▲

ENERGY
BY HARRY BANKS
TIM Yeo, chairman of the energy and
climate change select committee, has
said there was “a degree of over-reac-
tion”over the Gulf of Mexico oil spill
after outgoing BP chief executive
Tony Hayward was quizzed by MPs
yesterday.
Yeo said BP was the “unwitting vic-
tim” of US domestic politics after
Hayward told the parliamentary com-
mittee that the failings which caused
the spill were not particular to the
company he heads.
“It’s been easy for some parties to
suggest that this is a problem with BP.
I emphatically do not believe that that
is the case,” the outgoing chief execu-
tive said.
Hayward denied that there was any
link between the accident and previ-
ous safety lapses at BP such as a 2005
refinery blast that killed 15 workers.
“It’s very dangerous to join up dots
that may not be appropriate to join
up,” he said.
Hayward said the decision of rivals
such as Royal Dutch Shell and Exxon
Mobil to criticise it in the wake of the
disaster reflected the political climate
in the United States at the time, rather
than because of BP operating outside
industry norms, as the companies
said.
Hayward received a less confronta-
tional treatment from the committee
than he received from a US
Congressional committee. His appear-
ance came on the same day regulators
criticised BP for its safety training
regime in the North Sea.
Health and Safety Executive (HSE)
inspectors found the company lacked
a clear chain of command for dealing
with a loss of well control on a North
Sea oil rig – three months before a
blow-out in the Gulf of Mexico caused
America’s worst ever oil spill.
In a letter HSE said to BP that there
was “evidence of a culture among your
contractors, Seawell (up to senior lev-
els of management), of working out-
side of procedures, permit or permit
conditions”.
TAQA, 75 per cent-owned by the
government of Abu Dhabi, said in a
statement its unit TAQA Bratani
agreed to buy Total’s entire 81 per
cent stake in production licences for
two blocks in the Otter oilfield.
Otter produces around 8,000 bar-
rels per day (bpd) of oil, lies next to
existing TAQA interests and is linked
under the sea to the Eider Platform,
operated by TAQA Bratani.
TAQA’s oil production so far this
year has been running at a little over
35,000 bpd and the acquisition from
Total should add in excess of 6,000
bpd, North Sea oil analysts said. TAQA
gave no financial details.
The purchase is the latest in a series
over the last two years of North Sea oil
interests by TAQA, which has concen-
trated on building up assets in
mature offshore fields that other, big-
ger oil companies have discarded.
Analysts say TAQA has some advan-
tages over larger oil majors because it
optimises output from older fields
through new technology and will
Tony Hayward fell on his sword following criticism over the Gulf oil spill Picture: PA operate much smaller oil fields.

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 12 Focus on ABI Conference CITYA.M. 16 SEPTEMBER 2010

Shareholders urged to sign

up to new Stewardship Code
to governance regulation at a the European Commission. tutional investors are determined to
▲

REGULATION
BY VICTORIA BATES
SPEAKERS at the ABI’s investment
conference yesterday urged company
shareholders to sign up to the govern-
ment’s new Stewardship Code, argu-
ing that improving the long-term
attitude of investors is crucial in
order to hold at bay radical changes
European level.
Peter Montagnon, who left the ABI
earlier this year to become senior
investment adviser to the Financial
Reporting Council (FRC), said a collec-
tive display of long-termism would
put the UK “in a strong position to
push back on more radical alterna-
tives” currently being mulled over by
Those alternatives “would almost
certainly involve more direct regula-
tion of companies and also of the
markets with possible limits on the
right of shareholders who put up cap-
ital”, Montagnon warned.
Alain Dromer, the new chair of the
ABI’s investment committee, stressed
the importance of proving that “insti-
make it work and evolve over time” in
order to avoid “yet another layer of
regulation” from Brussels.
The Stewardship Code was pub-
lished by the FRC in July in order to
increase awareness among institu-
tions of their role in overseeing com-
pany leadership. The FRC has given
institutions until the end of the
month to declare their support.
Employment relations minister
Edward Davey underlined the impor-
tance of long-termism among share-

Get on your bike on your holders with regard to takeovers,

adding that the government is com-
mitted to tightening up the Takeover
Code as part of its current review.

City Break to Holland Solutions may include “higher merger

fees or a pre-notification requirement
for some deals”, he said.
Also attending the conference were
outgoing HSBC chairman Stephen MP Edward Davey was a
Green, Cable & Wireless chairman speaker at the ABI’s invest-
Richard Lapthorne and Severn Trent ment conference
chairman Sir John Egan.

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 ABI Conference
The FRC’s Peter Montagnon, above left, and HSBC chairman Stephen Green
ABI: Don’t ignore
UK’s institutions
▲
REGULATION
BY VICTORIA BATES
THE NEW chairman of the ABI’s
investment committee has warned
regulators that an over-zealous
approach to protecting the interests
of retail shareholders in the wake of
the financial crisis could come at the
expense of institutional investors.
In his first official speech in the
role, Aviva Investors chief executive
Alain Dromer expressed support for a
new regulatory structure with
increased emphasis on financial sta-
bility and a greater role for the Bank
of England.
But he said regulators should
ALAIN DROMER
CHAIRMAN OF THE
ABI INVESTMENT
COMMITTEE
AVIVA Investors chief Alain Dromer
went through a baptism of fire yester-
day as he hosted the Association of
British Insurers’ investment confer-
ence on his very first day as chairman
of the investment committee.
Frenchman Dromer replaced fellow
industry heavyweight Keith Skeoch,
the chief executive of Standard Life
13
guard against the danger of focusing
too heavily on the “perceived short-
falls in banking regulation” and skip-
ping over the needs of institutional
investors.
“Financial markets, we should
always remind ourselves and regula-
tors, allow capital allocation between
investors and issuers. Intermediaries
are servicing this purpose,” Dromer
said.
“There are significant differences
between retail and wholesale markets
and it is important that the priorities
of the Consumer Protection and
Markets Authority are not dominated
by thinking rooted in consumer pro-
tection.”
Investments, in the role and has also
joined the ABI’s board. The appoint-
ment was first announced just last
month.
He has been at the helm of Aviva
Investors for the past three years and
has a wealth of experience in the
financial services sector.
His CV includes stints as head of
group investment businesses at HSBC;
senior executive vice president and
head of asset management and insur-
ance at Credit Commercial de France;
and positions at La Compagnie
Financiere Edmond de Rothschild in
Paris, in the French Treasury and the
French Institute for Statistics and
Economic Studies.
 The Capitalist
14
REGAL DITCHES BROKER MIRABAUD
AFTER TUSSLE OVER LEADERSHIP
IT WAS the end of an activist era yes-
terday for broker Mirabaud Securities
and oil and gas firm Regal Petroleum,
which parted ways on, shall we say,
less than friendly terms.
Regal’s terse termination state-
ment to the stock exchange came
after Mirabaud questioned the tenure
of the company’s chief executive,
David Greer. That’s not a procedure
which is unheard-of in the City, of
course, but sources close to Regal said
the company’s beef isn’t with
Mirabaud’s feelings towards Greer
but in the manner in which it went
about expressing them.
Mirabaud, for its part, is under-
stood to have sent a letter in early
August to Regal chairman Keith
Henry, claiming that a significant
investor had called for Greer to be
replaced with ex-Burren Energy chief
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
Atul Gupta. The broker also claimed
to have elicited the support of several
other shareholders concerned at the
dramatic slide in the firm’s share
price.
But though sources close to Regal
admitted that the share price per-
formance has been less than ideal
since a $1m capital raise last year,
they said Mirabaud should have
approached Henry much earlier and
Regal chief executive David Greer has been under pressure from shareholders
that its hesitation constituted a
breach of duty, causing the contractu-
al break.
Regal declined to comment, while
no one from Mirabaud was yesterday
available to talk to City A.M.
For now, it seems the firm is happy
with its relationship with ongoing
broker Bank of America Merrill
Lynch, though whether or not the
shareholder unrest settles down may
turn out to be quite another matter.
UNSUNG HERO
Tullett Prebon boss Terry Smith was a
happy man indeed yesterday as a stat-
ue was unveiled in Waterloo Place of
Terry Smith in front of the statue
Air Chief Marshal Sir Keith Park, the
“unsung hero” of the Battle of Britain.
Smith has been campaigning for
over a year for a permanent statue of
Park in central London, to recognise
his valiant efforts in defending south-
ern England from the Luftwaffe as
commander of 11 Group Fighter
Command.
“My background in studying histo-
ry and my love of flying as a
private pilot perhaps partly
explain why I instigated the
campaign,” Smith said.
“Park’s central role in the
Battle of Britain has not
been suitably recognised –
until now, that is.”
SAFE AS HOUSES
A robust defence of the attrac-
tiveness of fine wines as an
investment play, courtesy of the
Fine Wine Investment Fund.
The fund – which is up 25 per cent
for the year to date – took issue in its
monthly update at a recent sugges-
tion that fine wine prices were never
likely to exceed residential property
prices as no one would ever pay more
for a case of vino than they would for
a house, no matter what the vintage.
Not so, the fund argues.
Apparently, on a historical basis
(going back to 1988) there is almost
no evidence of correlation between
the two markets, with fine
CITYA.M. 16 SEPTEMBER 2010
wine hugely outperforming residen-
tial property over the past two
decades.
“As fine wine prices increase as a
fraction of property prices, if the
argument was correct then their rate
of growth would slow, whereas the
opposite is true,” the fund wrote,
indignantly. “Nor does it make sense
on a qualitative basis. Fine wine is a
tightly supplied luxury consumable
good purchased for pleasure whereas
UK residential property is a large mar-
ket with very different value drivers,
not least of all interest rates, the sup-
ply of credit and affordability ratios…”
Apparently, the average UK residen-
tial property in 1983 was worth 89
cases of Lafite Rothschild 1982, but is
now worth a little under five. “We
would not bet against them reaching
parity in our lifetime,” ventures the
fund, bravely.
BOOKISH TYPES
Ping! In zooms an email from law firm
Latham & Watkins, which seems dis-
proportionately excited about a new
service it’s just launched on its website
and on a free iPhone app.
The app in question – called the
“Book of Jargon” – is an interactive
glossary of capital markets and bank-
ing slang, the firm informs me,
though it’s more an encyclopaedia of
serious terms than a collection of
humorous examples of cringeworthy
“business-speak”.
“We had a lot of fun putting togeth-
er this glossary of Wall Street lingo,”
explains Kirk Davenport, co-chairman
of the firm’s capital markets practice
group. “The Book of Jargon is definite-
ly one of the most useful
things we have ever pub-
lished and the new iPhone
app is by far the coolest
thing we have ever done…”
Someone get that man
to a boozy business lunch,
and pronto.
ACTION MAN
Finally, a note of congratula-
tions to Hugh-Guy Lorriman,
leisure research guru over at
Seymour Pierce.
Lorriman at the weekend com-
pleted a gruelling 140 mile coast-to-
coast endurance event, biking,
kayaking and running his way from
North to South Devon in aid of Trinity
Hospice, and all despite recent
Achilles tendon and knee injuries.
Our action man – so-called because
he sometimes wears combats into
the office, a little bird tells me – is
fundraising at www.justgiving.com/
Hugh-Guy-Lorriman, if you want to
chuck him some cash.
 16 Consumer News
Profit back at
ailing French
Connection
▲
RETAIL
BY JOHN DUNNE
FRENCH Connection bounced back
into profit yesterday after cost-cutting
measures were taken to breathe new
life into the business.
The group saw a slim half-year prof-
it of £200,000 compared with losses
of £5.4m over the same period last
year.
French Connection is closing loss-
making stores in the US alongside the
closure of its Japanese business and
some European retail outlets to get
the business back in line.
The company has also offloaded its
loss-making Nicole Farhi brand.
Turnover rose by four per cent to
£96.2m in the six months to July.
French Connection shares jumped
seven per cent to 47p after the
improved figures were announced.
Founder Stephen Marks has said
the fashion brand, which was a hit
until its FCUK brand lost its appeal,
appeared to be “back on track”.
Turnover rose four per cent to
£96m including a three per cent rise
in like-for-like sales in Britain and
Europe, driven by growth in
menswear and e-commerce.
“The like-for-like sales performance
in our retail stores in the early weeks
of the new season has shown a
decline making us more cautious
about our outlook for the second
half,” the retailer said.
It added: “However our wholesale
forward orders are ahead of this time
last year and we expect to be able to
maintain the stronger gross margins
achieved recently.”
ANALYSIS l French Connection
p
55
47.00
50 15 Sep
45
40
35
30
21 Jun 9 Jul 29 Jul 18 Aug
French Connection founder Stephen Marks says the brand is back on track
Identity crisis persists
FRENCH Connection is a retailer
which has more gallic luck than its
rivals. At the tail end of the 20th
Century, it managed to arrest an
alarming decline in sales by rebrand-
ing itself as FCUK, tapping into the
youth counter culture and stealing a
march on rivals like Gap. But in
recent years it has struggled to hold
its own, and many thought it would
be a casualty of the downturn: its
clever FCUK moniker (since discon-
tinued) couldn’t hide the fact that
the likes of H&M and Zara were mak-
ing more interesting clothes.
It has once again confounded the
doubters, swinging from a £5.4m
8 Sep
pre-tax loss last year to a £0.2m pre-
tax profit. But this was mainly down
to an admittedly impressive 240
basis points improvement in gross
margin. A new licensing deal, which
should add £1.5m to next year’s pre-
tax profit, also provides cause for
cheer. Sales continue to bump along
the bottom, however, and French
Connection’s bizarre positioning –
part high-end brand, part main-
stream High Street – is still confus-
ing shoppers and shareholders alike.
BOTTOMLINE
Analysis by David Crow
CITYA.M. 16 SEPTEMBER 2010
New trading
director hired
to steer JJB
CONSUMER
▲
JJB Sports has appointed Ben
Sherman international retail director
Kate Hayes as its trading director to
nurse it back to health.
Hayes will work alongside retail
director Ron Rome and HR and train-
ing director Paul Mitford.
She will join the retailer on 1
November and will be based at its
Retail Support Centre in Wigan.
Hayes has worked in retail for more
than 15 years.
Before joining Ben Sherman, Hayes
worked at Nike for eight years.
She was originally a European buy-
ing and merchandising director and,
after a short spell at Tesco.com, as
Nike’s UK retail director.
JJB chief executive Keith Jones said:
“Kate’s experience in the sportswear
market will be a great asset as we con-
tinue to strengthen our senior man-
agement team and drive the
turnaround of JJB Sports. Kate will
lead improvements in our product
offer to customers.”
Kate Hayes has moved
from Ben Sherman to
JJB Sports with the
task of improving the
company’s fortunes
CITYA.M. 16 SEPTEMBER 2010 Consumer News 17

Staycations hand
Next chief executive
Lord Simon
Wolfson believes
that the UK econo-
my will gradually

boost to economy
recover after a
series of challenges

summer. Meanwhile 76 per cent of

▲
LEISURE
BY JOHN DUNNE
VISIT ENGLAND has reported a
growth in domestic tourism as Brits
holiday at home on so-called “stayca-
tions”.
The group, which champions
homegrown tourism, said that 51 per
cent of hotels and 42 per cent of
camping businesses have seen an
increase in guest numbers over the
those questioned said they were con-
fident that they will have done as
well as or better this year and 83 per
cent think they are going to have a
great autumn.
Chief executive James Berresford is
confident that tourism businesses
will continue to do well in the future.
“The staycation shouldn’t be seen as a
cheap alternative because it offers
quality,” he said.

Next expects
online sales to
drive growth
truth is somewhere in between,” he
▲

RETAIL
BY JOHN DUNNE
NEXT yesterday reported a 15 per cent
rise in first half pre-tax profit and
pinned its hopes on internet sales to
fuel expansion.
The retailer said the tough con-
sumer climate, weakened by a loom-
ing VAT hike and job cuts in public
services would mean at least three to
five years of low sales growth.
Next sales rose five per cent in the
period with homeware performing
strongly. Pre-tax profit was £213.3m
and the company repeated its annual
profit forecast of around £530m.
The company’s share price jumped
7.8 per cent to close at 2,176p follow-
ing the announcement, which also
included a warning that clothes
prices would rise up to eight per cent
because of spiralling cotton costs.
Chief executive Lord Simon
Wolfson said a consumer boom had
been “supercharged” by easy credit
which was no longer available
However, he claimed Next was in a
good position to ride out the storm
because of its strong cash position.
“The economy is neither falling off
a cliff nor recovering quickly, the
said. He added that this environment
meant like-for-like sales improvement
would be “difficult”.
Referring to the internet he said:
“We will have to adapt to a new type
of consumer environment, one in
which like-for-like sales growth is like-
ly to be low for some time and top-
line growth will need to come from
other opportunities.”
Among the changes online will be
a guarantee that most customers will
receive their goods the next day if
they order as late as 9pm.
Wolfson said international sales on
the web had grown 250 per cent with
sales in Eastern Europe proving par-
ticularly strong.
ANALYSIS l Next
2350 p
2,176.00
2250
15 Sep
2150
2050
1950
21 Jun 9 Jul 29 Jul 18 Aug 8 Sep

Ideal Shopping Coca-Cola hit

in profit surge by strike action
▲

CONSUMER
TV CHANNEL Ideal Shopping posted a
first half pre-tax profit compared to a
loss the year before with trading in
the second half in line with manage-
ment expectations.
For the 26 weeks ended 4 July 2010
pre-tax profit was £2.89m compared
to a loss of £1.2m a year earlier.
Revenue for the period increased to
£56.58m from £47.42m. Like-for-like
sales jumped by 11.4 per cent to
£52.8m. Chairman Paul Wright said:
“We are optimistic for the second half
year. Trading in the first eight weeks
of the second half is positive.”
CONSUMER
WORKERS at a London Coca-Cola fac-
tory went on strike yesterday in a row
over pay.
Unite said the stoppage at the plant
in Edmonton will lead to millions
fewer bottles of Coke being produced
this month.
The union, which has threatened a
series of walkouts, warned that the
dispute could escalate unless the
company increases a two per cent pay
offer. Coca Cola said the decision to
strike had been “disappointing”,
while claiming that its pay offer had
been fair.
 18 News CITYA.M. 16 SEPTEMBER 2010

New push to merge German

publicly-owned landesbanks
running plans to consolidate or pri- “The trigger could be the sale of
▲

BANKING
BY HARRY BANKS
GERMAN finance minister Wolfgang
Schaeuble yesterday launched a new
campaign to merge publicly-owned
landesbanks, which suffered in the
credit crisis and could lose support
more quickly under new capital
rules.
The Basel III agreement on bank
capital rules passed at the weekend
has given new momentum to long-
vatise such regional lenders, the
finance ministry spokesman Michael
Offer said.
“The need for action has
increased, and it’s correct that the
finance minister will increase his
efforts to work towards a solution on
this issue,” he added.
Consolidation could start with the
sale of a landesbank in the western
state of North Rhine-Westphalia
(NRW).
WestLB,” a high-ranking landesbank
source said. “But I wouldn’t expect
much support from the state pre-
miers, because they want to main-
tain the status quo for the most
part.”
Landesbanks like WestLB, LBBW
and BayernLB provide wholesale
banking services to their local public
savings banks and are a source of
prestige and patronage for state
politicians.

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Tube bosses to meet with unions

Many more exciting offers in store to avoid further strikes by staff
242 Tottenham Court Road The two sides are currently at odds
▲

TRANSPORT
London W1T 7QR
TALKS to avoid another set of crip-
Tel: 0845 634 0333 pling strikes by Tube staff are set to
take place next week.
‘Sony’, ‘make.believe’, ‘VAIO’ and their logos are trademarks or registered trademarks of Sony Corporation.
Senior management from the
All other trademarks are property of their respective owners. All rights reserved. All prices correct at time London Underground (LU) will meet
of going to press E & O.E. All pictures are for illustration purposes only. Promotion ends 10th October 2010. with trade unions RMT and the
Transport Salaried Staffs’ Association
(TSSA) at conciliation service Acas in a
bid to soothe a heated dispute over
proposed job cuts to station staff.
over plans by LU to cut up to 800 sta-
tion jobs.
If the negotiations are successful,
the unions could call off three more
planned strike periods, which are cur-
rently set for 3 October, 2 November
and 28 November.
Earlier this month RMT and TSSA
caused chaos on London’s transport
network after Tube workers launched
industrial action.
 the essential
FASHION
& style weekend
Friday 17th - Monday 20th September
Jubilee Place, FREE
fashion advice & style consultations
colour matching
body shape consultations
hair & beauty demonstrations
 20 News
Japanese PM
intervenes to
weaken yen
▲
FOREIGN EXCHANGE
BY MARION DAKERS
JAPAN intervened in the currency
market to weaken the yen yesterday,
ending a 15-year high and setting the
tone for Prime Minister Naoto Kan’s
time in office after fending off a lead-
ership challenge on Tuesday.
The dollar jumped to 85 yen from
its earlier low of 82.87 immediately
after the Bank of Japan, acting for the
Finance Department, stepped in to
flood the market with the currency
for the first time in six years.
Traders cited market estimates that
the latest intervention amounted to
around 1.5 trillion yen (£11.2bn).
The move helped propel the euro,
Australian dollar and sterling sharply
higher against the yen, though
traders doubted Japan had bought
anything other than dollars.
Stock investors cheered the move,
sending the Nikkei 225 stock average
up by 217.25 points, or 2.3 per cent, to
close at 9,516.56.
Currency traders had long specu-
BOOK WWW.TICKETMASTER.CO.UK
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lated on whether Japan would inter-
vene to halt the growing strength of
the yen and ease the burden on
Japanese exporters.
“If Kan was ever going to intervene
it had to be shortly after the election,
to make it clear where the leadership
stood,” said Simon Derrick, head of
currency research at BNY Mellon.
The foreign exchange markets will
now watch to see if Japan will repeat
the move to keep the yen weak.
“Speculators have been long of yen
so there is scope for further yen sell-
ing. But there’s scepticism over
whether the Japanese can change the
trend as fundamentals haven’t
altered,” said Beat Siegenthaler, FX
strategist at UBS.
FAST FACTS | THE JAPANESE YEN
● The yen hit a 15-year high against the dollar
this month, meaning the USA was paying less
for Japanese goods from firms such as Sony.
● The Japanese government last stepped in to
alter the currency markets in March 2004.
CITYA.M. 16 SEPTEMBER 2010
BlueCrest goes
Japanese Prime
Minister Naoto
Kan’s
government
believes sharp
currency to the market
movements have
harmed the
domestic
economy
for more cash
Picture: GETTY
HEDGE FUNDS
▲
ANALYST VIEWS: WHAT DOES JAPAN’S HEDGE fund BlueCrest hopes to cash
in on demand for its AllBlue fund to
MOVE TO INTERVENE MEAN? Interviews by Marion Dakers raise up to £80m this month, after
announcing a share sale yesterday.
It is the AllBlue fund’s third offer-
ing in 12 months, and will place new
SIMON DERRICK | BANK OF NEW YORK MELLON
shares worth 9.99 per cent of total
“
issued stock.
AllBlue successfully raised £349m
The intervention by Japanese authorities was in the in June and took £100m in December,
top ten largest interventions this year. It’s been very success- and said there was ongoing desire for
”
ful on the day. It’s interesting that there seems to be support its shares.
AllBlue chairman Richard Crowder
from the EU for the intervention. said: “This proposed placing responds
to the considerable demand we have
witnessed from investors.
ASHRAF LAIDI | CMC MARKETS “BlueCrest AllBlue is performing
“
well and is trading at a premium to
net asset value. BlueCrest remains
It doesn’t mean much for the sterling-yen trade, confident that it represents an attrac-
though we could see a brief reprieve in the rates. It’s not the tive opportunity in current market
”
start of a systematic intervention but Japan can now try to conditions.”
RBS Hoare Govett and Dexion
run the show with additional verbal warnings. Capital are acting as joint bookrun-
ners for the company, which tracks
other funds owned by parent
CHRIS REDFERN | MONEYCORP BlueCrest Capital Management.
“
AllBlue had $5.2bn (£3.3bn) of
assets under management on 1
Last week Japan reached the end of its tether, and September, when it hit its target half-
this could be a bit of a short-term move to point the market year return of five per cent on its ster-
”
ling shares. AllBlue’s smaller euro
away from endless rises in the currency. We could see more and dollar share classes returned 9.2
interventions, the yen is no longer a one-way street. and two per cent respectively.

Jack Dorsey created Twitter which is now ramping up its challenge to rivals Picture: REUTERS
Twitter ready
to monetise
with revamp
▲
TECHNOLOGY
BY ALASDAIR PEOPLES
TWITTER yesterday said it is redesign-
ing its website in an effort to make it
easier for users to navigate the service
and discover new information.
Chief executive Evan Williams
announced that the four-year-old com-
pany, which on average is now signing
up 370,000 new users daily, will intro-
duce a completely new system which
is more responsive and user friendly.
The site will feature a new two-pane
layout and users will be able to embed
YouTube videos and various other con-
tent on the screen.
The changes promise a “richer and
faster experience”, Williams said at a
press conference to announce the new
site. His hopes are that the redesign
will also help to better monetise the
service as a new advertising system is
introduced.
Forrester analyst Augie Ray said the
redesign should help improve engage-
Astra drug to Eutelsat reaches
face FDA delay more TV homes
▲
PHARMACEUTICAL
ASTRAZENECA’S potential new block-
buster heart drug Brilinta faces a
three-month delay in winning
approval in the United States, slicing
valuable revenue-earning time off the
product.
The company said the Food and
Drug Administration (FDA) needed
more time to study the application
and would now complete its review
by 16 December rather than by 16
September as originally indicated.
Brilinta is AstraZeneca’s most
important pipeline product and the
company is relying on its revenues to
offset expiring patents.
News 21
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hool, University of Te
exas
improve Twitterers’ interactions with
content and each other, and ease adop- at Austin, University
sity of North Carrolina, University
Un of Maryland
tion for Twitter newbies,” Ray said in a
blog post.
The new Twitter.com will be
launched for a small percentage of
users next Tuesday, and will later be
rolled out incrementally across the
globe over the coming weeks.
The announcement comes after
Register Today
o at: TheMBAToourr.com
.
Google bosses this week said that their
company plans to develop a new social
networking platform.
The move is being regarded as a seri-
ous attempt to challenge the domi-
nance of rival Facebook in social
media.
With more than 90m tweets sent
per day on average, Twitter is increas-
ingly challenging established web
giants such as Yahoo and Google for
consumers’ online time.
ECONOMY
ONE of the world’s largest satellite
operators Eutelsat Communications
yesterday said it is reaching nine out
of 10 homes in those countries it
serves, as it announced the key high-
lights of its bi-annual survey of televi-
sion reception by satellite and cable
homes.
Eutelsat own satellites that provide
coverage over the entire European
continent, the Middle East, Africa,
India and large parts of Asia and the
Americas. The survey showed 204m
satellite and cable homes receive
channels via Eutelsat, up from 190m
in 2008.
 22 News CITYA.M. 16 SEPTEMBER 2010

Profit jumps by
78pc at Brooks
Government to try
Macdonald again to sell off the
Tote bookmakers
▲

FINANCIAL SERVICES
WEALTH manager Brooks
Macdonald posted a 78 per cent
jump in pre-tax profit for the year
yesterday, prompting the Aim-listed
firm to hike its dividend by 64 per M&A Tote and with racing interests as this

cent to 9p.
Brooks generated £35.1m in rev-
enue in the year to 30 June, it said
yesterday, and made a profit of
£5.68m before tax.
Its funds under management bal-
looned 57 per cent to £2.19bn, and
the firm said all parts of its business
grew last year.
“Organic growth fuelled by office
openings and new strategic alliances
with professional introducers has
been a key driver, but has been com-
plemented by the acquisition of
Lawrence House during the year and
of Braemar Group post year end,”
said chief executive Chris Macdonald
yesterday.
Total staff numbers have increased
from 140 to more than 200, helping
to push administrative costs up 57
per cent to £29.5m.
▲
BY HARRY BANKS
THE GOVERNMENT will launch the
sale of the state-owned Tote book-
makers in the late autumn, a minis-
ter confirmed yesterday.
The disposal of the Tote, which
takes bets on horse racing, football
and other sports, forms part of a
wider sale of government assets as
the country aims to deal with a
yawning budget deficit.
“This process will be open to all
organisations who have an interest
in the Tote and the government
expects to be in a position to update
the House early in the new year,”
said minister for tourism and her-
itage John Penrose in a statement to
parliament yesterday.
“The government will continue to
The government has again put the Tote on the block Picture: REUTERS liaise closely with the board of the
process unfolds.”
Private-sector rivals such as Paddy
Power and Ladbrokes have previously
said they could be interested.
The Labour government’s
attempts to sell Tote were cancelled
in 2008 due to poor market condi-
tions. The company was thought to
be worth upwards of £300m at the
time.
Current chancellor George
Osborne announced in his June
emergency Budget that he planned a
future for Tote that “secures value
for the taxpayers”. It will now be put
onto the open market.
The High Speed 1 rail link, air traf-
fic control and the student loan
book are among the other assets that
the coalition government hopes to
sell off to pump billions of pounds
into the public purse.

Sanofi chief hopeful

of buying Genzyme
BIOTECHNOLOGY a webcast presentation at a Bank of Viehbacher did not say at what
▲

BY HARRY BANKS America-Merrill Lynch Global price the Genzyme shareholders he

SANOFI-AVENTIS sees a reasonable
chance of buying US biotech
Genzyme at a fair price, but
expects it will take some time to
agree a deal that would further
diversify the French drugmaker
and strengthen its US foothold.
Chief executive Chris Viehbacher
yesterday reiterated Sanofi would
not be rushed to buy Genzyme, a
specialist in rare diseases, after it
rejected Sanofi’s $18.5bn (£11.8bn)
non-binding cash offer at the end
of August.
“I think there’s a reasonable shot
at a deal getting done at a reason-
able price, but it’s not going to be a
quick process,” Viehbacher said in
Healthcare conference in London.
Genzyme chief executive
founder, Henri Termeer, late last
month said there was a “high prob-
ability” of a deal getting done but
demanded, without wanting to
specify, a reasonable starting point
for negotiations to begin.
Viehbacher had met about 50
per cent of Genzyme shareholders
in the US last week and has yet to
meet Genzyme management,
whom he has accused of forming a
“brick wall”, to discuss Sanofi’s
offer of $69 a share.
“It was easier to see Genzyme
shareholders than management,
but that will hopefully change very
shortly,” he said.
had met would consider selling
their holdings in the company.
Several of Sanofi’s key drugs are
facing generic competition which
along with future patent expiries
will shave about a third of its 2008
sales until 2013. Buying Genzyme
would help Sanofi bridge that gap
and add rare diseases as a sixth
growth platform next to others like
emerging markets and vaccines.
Sanofi-Aventis boss
Chris Viehbacher
said he will not be
rushed into buying
rival firm Genzyme

Galliford Try forecasts more demand

for jobs in the construction industry
▲

CONSTRUCTION
HOUSEBUILDER and construction
firm Galliford Try yesterday said it
planned to cut a further five per
cent of its workforce in the con-
struction business amid fears of gov-
ernment spending cuts and a
continued decline in demand.
The company, which employs
about 3,850 people, said it has cut as
many as 15 per cent, or about 500
jobs, in the construction division
from 3,300 last year.
“It’s a very challenging market in
construction. There is undoubtedly
less work out there... we are actually
encouraging our construction divi-
sion to downsize,” said chief execu-
tive Greg Fitzgerald.
Fitzgerald expects construction
sales to fall seven per cent in the
current fiscal, mainly due to the
British government’s programme to
slash public spending. “We would
anticipate somewhere between 20
and 40 per cent cutbacks in most of
our areas where the government
spends money,” he said.
According to a survey of purchas-
ing managers, growth in Britain’s
construction sector slowed marked-
ly in August, and employment with-
in the sector decreased.
However, Fitzgerald expects sales
from the its housebuilding unit,
which the company planned to
expand, and private commercial
projects to offset the lower demand
in construction.
For the year to 30 June, revenue
was £1.22bn, down 16 per cent from
a year ago. Galliford Try, whose
landbank rose 24 per cent to 9,700
plots, expects to double its housing
market sales in 2012 from £316m
currently. Pre-tax profit rose to
£26.1m from £24.5m last year.
CITYA.M. 16 SEPTEMBER 2010
Fleming set to
pounce as law
firms open up
▲
LEGAL
BY EMMA SADOWSKI
FLEMING Family & Partners, the pri-
vate wealth manager, has joined the
growing pool of firms interested in
investing into the legal sector once
the market opens up next autumn.
The family arm, which manages
personal wealth for high net-worth
families, has recently been in discus-
sion with a number of law firms in
the City about becoming a potential
third party investor, say sources close
to the talks.
It can only do so after October next
year once the government brings the
Legal Services Act (LSA) into force.
Flemings joins a growing number
of bodies, including a raft of private
equity firms, which could inject capi-
tal into law firms in the future.
Other potential parties include
Lyceum Capital, Phoenix Equity
Partners, Lloyds Development Capital
and Investec.
A growing number of family
offices, similar to Flemings, are
becoming increasingly interested in
investing in the legal sector with
hopes that their returns will be sub-
stantial.
Flemings declined to comment on
any potential investment into law
firms.
The LSA, which received Royal
Assent three years ago, is likely to rad-
ically change the landscape of the
legal sector. The act is expected to
open the traditionally closed partner-
ship model to external investors and
will enable law firms to have the abil-
ity to raise additional finance
through an initial public offering.
A number of legal bodies are
already considering their options and
whether or not to float on the stock
market once the act comes into force.
It will also open the door to non-
legal entities, including banks, real
estate agents and insurers to join
forces with legal outfits to create an
alternative and broader business
structure.
Anthony Rose (inset) founded City firm Hampden Law Picture: Micha Theiner/City A.M.
Hampden Law seeks fresh
investors in bid for growth
LEGAL
▲
BY EMMA SADOWSKI
ANTHONY ROSE, a former partner
with a City law firm, has launched
Hampden Law, an independent prac-
tice, with hopes it could become one
of the first legal practices to receive
outside external investment once the
Legal Services Act comes into force
next year.
Hampden Law, which advises on
commercial work, already has busi-
ness support from insurance services
firm, The Hampden Group.
The legal outfit receives external,
accounting, secretarial and IT sup-
port from Hampden Chambers, a sub-
sidiary of the group.
Rose is hoping that after the Act
comes in, Hampden Law will become
part of the Hampden Group and serve
as the group’s legal team.
He said: “We perhaps will be
acquired by the Hampden Group as
its legal team next year.”
News 23
UK firms under
threat from new
Bribery bill
LEGAL
▲
THE Ministry of Justice (MoJ)
launched a two-month consultation
on the Bribery Act to help companies
prepare for new legislation due to
come in next April.
A consultation period with indus-
try bodies kicked off yesterday and
will run until the beginning of
November. The government said that
it plans to publish the responses in
early 2011.
The consultation covers corporate
hospitality and promotional expendi-
ture. Firms have been concerned that
the wording in the act was too broad,
leaving large international compa-
nies vulnerable to bribery charges,
especially when it came to entertain-
ing clients and business partners.
Others fear that strict new legisla-
tion currently threatens to put UK
companies and those doing business
in the UK at a competitive disadvan-
tage
“That the government has now
issued draft guidance is welcomed.
The guidance is, as expected, based on
principles. Although it doesn’t solve
some of the problems, especially con-
cerning the bribery of a foreign offi-
cial, it is positive that some guidance
has been provided on that point,” said
Simmons and Simmons lawyer
Patrick Boylan.
 24 News CITYA.M. 16 SEPTEMBER 2010

US industrial output growth BEST OF THE BROKERS

ANALYSIS l ARM
p
386.60
15 Sep
ARM
Execution Noble thinks it’s time for a

slows while import prices rise

400
380
breather on the technology company, and
360
downgrades the stock to a “sell” with a fair
340
value of 300p. The broker says that ARM
320
remains well placed to outperform the
300
semi-conductor industry, and will continue
turing sector continued to expand 0.4 per cent in August, compared to expand into new end markets, but the
▲

WORLD ECONOMY 280

BY HARRY BANKS
US INDUSTRIAL output slowed last
month and a regional measure of fac-
tory activity touched a 14-month low
in September, pointing to a cooling in
manufacturing as the boost from an
inventory build-up fades.
The reports yesterday were consis-
tent with other data suggesting the
US economy is stuck in a soft spot,
but they also showed the manufac-
I am
and offered nothing to suggest a new with July’s 0.3 per cent advance. current value of 29 times 2012 core earn-
recession was brewing. Separately, the New York Fed’s
Industrial production rose 0.2 per “Empire State” general business con-
21 Jun 9 Jul 29 Jul 18 Aug 8 Sep ings forecasts is hard to justify.
cent in August, Federal Reserve data ditions index slipped to 4.14 in ANALYSIS l Sainsbury
showed, matching economists’ fore- September from 7.10 in August. p 380.50
SAINSBURY
casts for a sharp slowdown from July September's reading marked the low- 380 15 Sep RBS has downgraded the supermarket to a
when unusually strong auto manu- est since July 2009 and was below 370
“hold” from a “buy”, with a target price of
facturing lifted output. July’s gain market expectations for 8.0. £3.82, after shares reached its previous
was revised down to 0.6 per cent from Any reading above zero in the 360
350
target of £3.70. The broker says it does not
one per cent. index, which economists look to for
Excluding motor vehicles and early clues on national output, indi- 340
see any near-term triggers that could
parts, total industry output increased cates expansion. 330
change its forecasts, and prefers peers
320
Tesco and Morrisons. It predicts a 1.1 per
cent rise in sales growth at the firm’s quar-
21 Jun 9 Jul 29 Jul 18 Aug 8 Sep terly results in October.
ANALYSIS l Aggreko AGGREKO
1,650 p
1,528.00 Standard & Poor’s has initiated coverage
1,600 15 Sep on the temporary power supplier with a
1,550
“hold” rating and a target price of £17.00.
1,500 Analysts believe Aggreko’s exposure to
1,450 developing markets means continued
1,400 demand for its services, and thinks growth
1,350 could accelerate in the next five years.
However, S&P sees potential for earnings
21 Jun 9 Jul 29 Jul 18 Aug 8 Sep disappointment.
I am To appear in Best of the Brokers email your research to notes@cityam.com

Ruby
Wax
Ben
Griffiths Boeing hit by
WTO’s ruling
Boeing argues any aid for which
▲

WORLD TRADE
BY HARRY BANKS Washington is faulted pales in compar-
ison with subsidies for Airbus that
WORLD Trade Organisation (WTO) were resoundingly denounced by the

I am I am judges have found aircraft maker

Boeing received more than $20bn
(£12.7bn) in US government subsidies
WTO in a ruling in a parallel case.
Both sides have appealed various find-
ings in that case.
Jane Jon challenged by the European Union
and called for them to be withdrawn,
The European source said the WTO
judges had backed EU complaints over

English Snow an EU source said yesterday.

The confidential ruling, if con-
firmed, would add weight to European
calls for a negotiated settlement to the
transatlantic row over the aerospace
industry – the biggest bilateral trade
dispute – following WTO condemna-
tion in June of illegal European subsi-
dies for Boeing rival Airbus.
But in the past both sides have
accused the other of putting out mis-
Search information so early leaks must be
treated with caution.
Kid
s The confidential report, issued only
to EU and US officials, will not be
I am
’P
some $17bn in research contracts
from the US aerospace agency NASA
and the Pentagon, and $4bn in tax
breaks from Washington state.
The WTO judges found these pay-
ments broke WTO rules and should be
withdrawn, the source said. The fig-
ures were not cited in the report but
were derived from adding the respec-
tive claims.
But the WTO dispute panel did not
find that aid challenged by the EU was
prohibited – as it did in a ruling in the
parallel case against Airbus subsidies
brought by the US – which would have

made public until possibly mid-2011. required faster remedies.

eac

Helen I am
e of Mind

THE EU’S CASE | THE MAIN ISSUES RAISED

Mirren Richard ● NASA-funded federal research programmes $3bn for independent research and to pay for

Branson have injected more than $10bn into Boeing. The

US defends these funds as being payments for a
service; the EU says they break WTO rules.
Boeing government contract bids. US says these
payments are legal commercial transactions.

● Washington state gave Boeing $3.5bn in illegal

● The US Department of Defense (Pentagon) has
given Boeing $2.4bn worth of dual-use technology
for its large civil aircraft, as well as access to the
department’s facilities, equipment and staff.
● Boeing received $726.4m worth of intellectual
property rights in free patents, industry secrets
and data rights from NASA and the Pentagon for
its large civil aircraft.
● NASA and the Pentagon paid Boeing another
tax breaks, tax rate discounts, interest subsidies
and bond issuance. Illinois and Chicago gave
Boeing a relocation package, tax credits and rent
subsidies. Kansas supports Boeing with a $900m
package of tax breaks and subsidised bonds.
● Boeing is still eligible for $2.2bn of export sub-
sidies the WTO has already ruled illegal.
● All US support, which has helped Boeing
launch its 787 Dreamliner, is non-repayable.
CITYA.M. 16 SEPTEMBER 2010 News 25

Carlsberg eyes cider sales Bayer’s Xarelto anti-clotting drug

targets potential $15bn market
ing. Carlsberg could also turn to bot- Among other non-beer products,
▲

BEVERAGES
BY HARRY BANKS tled water and soft drinks if that paid the group has launched Tuborg Lime

DANISH brewer Carlsberg yesterday
said successful launches in Russia of
Somersby cider and Eve, a fruit
flavoured malt beverage aimed at
women, meant it could look to prod-
ucts other than core brands for
growth.
Chief executive Jorgen Buhl
Rasmussen also said the world’s
fourth-biggest brewer was to target
women in general and northern and
western European markets in particu-
lar, as it looked to broaden its offer-
off, he said at the company’s annual
investor day. “When we look at inno-
vation in the future, we will see prod-
ucts that support beer,” he said.
Head of global sales, marketing
and innovation, Khalil Younes, said:
“We have launched Somersby in 12
markets, including Russia, with great
success.”
Eve, flavoured with fruit juice, has
also done well there, Younes said.
“Year-to-date we have sold 60 per cent
more than our budget. So we have
surprised ourselves.”
Cut in Denmark and Norway.
Rasmussen said he expected east
European markets to begin growing
again soon after a hard 2009.
The group’s Ukraine chief told
Reuters in an interview that the local
market – Carlsberg’s second biggest
by volume – had turned around after
shrinking seven per cent in 2009.
Carlsberg stood by its mid-term tar-
get for operating margin in its
Northern & Western Europe division
to rise to 15-17 per cent in 10 years,
finance director Jorn Jensen said.
▲
PHARMACEUTICALS
GERMANY’S Bayer yesterday said it was
targeting a market worth as much as
$15bn (£9.6bn) with its anti-blood-clot-
ting pill Xarelto, setting the stage for
decisive study results to be released
later this year.
Chief executive Werner Wenning,
who will hand over to Marijn Dekkers
next month, said the new generation
of experimental anticoagulants such
as Xarelto – designed to replace prob-
lematic existing treatment warfarin –
could have combined annual sales of
$12-$15bn.
Industry analysts believe the market
eyed by Bayer and its development
partner Johnson & Johnson could
eventually be worth more than $10bn
a year and possibly as much as $20bn.
Wenning also reconfirmed an esti-
mate for Xarelto, based on the active
ingredient rivaroxaban, to have peak
annual sales of more than €2bn
(£1.7m). A key study on Xarelto will be
presented at the American Heart
Association meeting in November.

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

Europe. director and spearheaded the growth of from MacIntyre Hudson.

Jefferies
The investment bank has appointed Julian
Smith from Collins Stewart as its new head of
UK corporate broking.
Smith has over 16 years of corporate broking
and equity experience.
In addition to his role as a managing director
at Collins Stewart, he previously spent 15 years
at Dresdner Kleinwort in corporate broking and
equity capital markets roles, also most recently
as a managing director.
Aviva Investors James Morrow as client portfolio man-
The investment firm has appointed ager for real estate in the UK and
Morrow joins from Ernst & Young
Real Estate Finance, where he was an
assistant director responsible for devel-
oping a global real estate capital capa-
bility. Prior to that, he worked at DTZ
Corporate Finance.
KPMG
The accountancy firm has hired
Graham Macken as a partner in its per-
formance and technology consultancy
practice.
Macken was previously at Navigant
Consulting, where he was a managing
the firm’s investment management
advisory practice in Europe. He has also
had experience working for Morgan
Stanley Investment Management and
Merrill Lynch Investment Managers.
Kingston Smith
Silvia Vitiello and Richard Heap have
joined the accountancy firm as part-
ners.
Vitiello is a general practice partner
with expertise in a range of sectors
including property, technology, not-for-
profit and professional firms. She joins
Heap joins from BDO, where he spe-
cialised in the technology, media and
telecoms sector.
RMG Wealth Management
The private client investment manager
has hired Stephen Greene as a client
portfolio manager.
Green was formerly chief investment
officer and a partner at ACPI
Investments and has also held the posi-
tion of global head of hedge fund
research at Deutsche Bank Private
Wealth Management.

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

LET’S
LET
T’S TA
TTALK
A
ALLK FOREEX
Join Allister Heath, editor of City AM as he welcomes Boris Schlossberg,
Director of Currency Research at GFT for an ‘all-things-forex’ seminar.

Thursday, 23 September | 8:00 am – 10:00 am | The Grange Hotel, St Paul’s Register online
at gftuk.com//ccityam
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ng this seminarr, you will learn:
đƫƫ$!.!ƫ0$!ƫ +((.ƫ%/ƫ$! ! čƫƫ %/1//%+*ƫ+"ƫ/+%(ƫ* ƫ!+*+)%ƫ"0+./ƫû!0%*#ƫ0$!ƫƫ).'!0ƫ/ƫ3!ƫ$! ƫ%*0+ƫ0$!ƫ(+/!ƫ+"ƫĂĀāĀ
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 Investment
26 CITYA.M. 16 SEPTEMBER 2010

| Listed Products

Credit Suisse
expands into
UK ETF market
Listing in London is For the past decade, new arrivals in the
European ETF space have been trying to
the first step in the wrestle market share away from the behe-
moth that is BlackRock, whose European
division iShares controls 33.2 per cent of
bank’s global shift, the European market.
But Credit Suisse is confident that ETF
says Jessica Mead provision is not a zero-sum game, particu-
larly in Europe, which is lagging behind
the US market. Deutsche Bank forecasts

C
OMPETITION in the exchange-traded
fund (ETF) market stepped up anoth-
er notch yesterday when Swiss bank
Credit Suisse launched 45 ETFs on
the London Stock Exchange (LSE), solidify-
ing its European presence and paving the
way for a global launch of its ETF product.
that annual growth in the European
exchange-traded product market may
reach 25-30 per cent before the end of
2010.
Credit Suisse’s global head of ETFs Dan
Draper says: “We believe it is an exciting
time for the European ETF industry. This is
A timely arrival for only the beginning of the story, we see
Credit Suisse ETFs potential for rapid growth in Europe, sim-
ilar to that seen in the US over the past
Picture: REUTERS decade.”
His colleague Bob Parker, senior adviser
and member of the Credit Suisse global
investment committee, says: “Our latest
development is consistent with how we
see client demand and changes in capital
flows. Over the past 10 to 15 years, clients
have been moving away from traditional
asset management and into either ETFs

Use forex products to gain

as Japan wrestles the yen
Tokyo’s intervention could speed permitted to bet directly on forex, a wide
range of currency-tracking products enable
actions: the yen is slated to weaken over the
medium-term without intervention. In
up a devaluation versus the them to benefit from these movements
through exchange-traded notes (ETN).
response to the announcement yesterday,
Capital Economics released a note:
greenback, writes Juliet Samuel ETF Securities (ETFS) says it has seen
money moving steadily into short yen posi-
“Barring a major new shock in global mar-
kets, we continue to expect the yen to fall
tions over the last two weeks. ETFS’s Martin back to around 90 against the dollar by

T
HE yen lurched downwards 2.4 per
cent versus the dollar and 2.8 per
cent against the euro yesterday as the
Bank of Japan (BoJ) waded into the
forex markets to weaken the currency.
While many institutional investors are not
Arnold says that this position now repre-
sents 18 per cent of all assets under man-
agement in the firm’s currency products –
slightly down from 24 per cent a week ago.
But this does not necessarily reflect con-
fidence in the effectiveness of the BoJ’s
year-end, regardless of intervention.”
So the policy change could just speed
things up. Japanese fundamentals have
been poor for a long time, with sluggish
growth, deflation and an estimated govern-
ment gross debt of 228 per cent of GDP
plaguing its economy. The yen’s surge to 15-
year highs against the dollar was therefore
little more than the result of the markets’
ongoing quest to find somewhere safe to
store cash: as a stable advanced economy,

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by Flow Traders B.V.PHAU is issued by ETFS Metals Securities Ltd (MSL). GBS is issued by Gold Bullion Securities
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*AUM figures as at 29th June 2010

CITYA.M. 16 SEPTEMBER 2010
and index products or into alternatives.”
But while there is certainly room and
demand for more providers, entrants
still need to demonstrate an edge over
their competitors to acquire market
share in what is a highly competitive
industry.
Credit Suisse has managed to differ-
entiate itself from the existing UK
providers. The tie-up between its invest-
ment bank and its asset management
division has allowed Credit Suisse to
become the first European provider to
offer both physically-backed and swap-
backed ETFs. Of the 45 listed yesterday,
there are 32 physically replicated ETFs
and 13 swap-based products.
The swap-backed ETFs allow Credit
Suisse to place a strong emphasis on
emerging markets within its London-
listed range, including the first ever
Ucits-regulated Chinese A-shares ETF,
giving exposure to the Chinese market.
Swap-based ETFs both remove many
of the problems associated with track-
ing error and give exposure to markets
that are more difficult to access, but
they throw up the issue of counterparty
risk. This has become particularly rele-
vant post-crisis so Credit Suisse ETFs
have a daily swap reset, restricting coun-
terparty risk to a single day’s mark to
market movements.
Credit Suisse certainly has ambitious
plans for its ETF range. Whether it can
gain enough traction in the UK market
remains to be seen.
Tokyo is taking on
the yen’s strength
Picture: REUTERS
Japan was merely seen as the best of a
very bad set of options.
But analysts have been anticipating an
end to these highs for some time. The BoJ
has been putting off intervention in part
due to a G7 agreement to forego direct
intervention in the currency markets. US
officials are likely to look unkindly on
the policy change, which rather under-
mines the case against voracious Chinese
purchases of Treasuries.
But even if the US goes for further
quantitative easing, most economists
expect the balance to tip back in favour
of dollar strength. Which means that –
unless the global economy double dips –
the BoJ and short yen traders may get
their wish without having to pour
money into a bottomless pit.
LISTED PRODUCT NEWS
DONATA HUGGINS
RBS SEMINAR ON TECHNICAL ANALYSIS
RBS is tonight hosting a seminar where
Jackson Wong from research and analysis
provider Investors Intelligence will be giving
a full market update from a technical analysis
perspective. Wong is a technical analyst spe-
cialising in indicators and chart patterns in
the global fixed income markets. He will
focus on the major asset classes and give an
insight into what is coming next for listed
products. RBS will also provide a talk on its
products. The seminar will run from 5.30pm-
7.00pm and will be held at 250 Bishopsgate.
To register: www.rbs.co.uk/markets.
ANALYSIS l Number of ETFs listed on the LSE by issuer
Deutsche Bank:
iShares:
Credit Suisse:
Lyxor:
%
ETF Securities:
Source:
Powershares:
HSBC:
RBS (Market Access):
Marshall Wace Indices:
Osmosis:
Source: London Stock Exchange
RBS LISTS 2,000 TURBOS IN PARIS
RBS announced the launch of 2,000 turbos
on NYSE Euronext in Paris earlier this week.
These turbos are already listed on NYSE
Euronext in Amsterdam. They offer investors
a greater choice of available strategies
through exposure to a broad range of under-
lying assets: 31 French equities, 105 other
equities, 44 indices, 24 commodities, 10 cur-
rencies and seven bonds. Turbos allow lever-
aged exposure to trends in underlying assets
without the constraints of a predetermined
maturity date or excessive sensitivity to
volatility.
27
WILL FERRELL AND
MARK WAHLBERG
THE OTHER GUYS REVIEWED
IN TOMORROW’S PAPER
Global demand for
sugar is rising
Picture: SXC
28.5%
28.2%
13.8%
8%
6.1%
4.9%
4.7%
2.8%
1.8%
0.9%
0.3%
THE
TIPSTER
SUGAR WILL PROVIDE
SOME SWEET PROFITS
S
UGAR prices have hit a high this year at
24.87 cents per pound. An increase in
demand and export bottlenecks in
Brazil could see further rises. Spreadex
has a Sugar No 11 October contract at
24.08c -24.18c.
Next stormed ahead yesterday following
a fantastic trading update. The jump could
be a precursor to further share price gains.
Retail stocks have also benefited from some
good US sales data this week. Capital CFDs
quotes a price of 2,140.9p-2,145.1p.
But the future might not be so rosy –
recent results from the sector have shown
that inflation is starting to be felt in manu-
facturing. Dunelm, the furniture manufac-
turer, is expected to announce that prices
will rise and demand will fall in its annual
report out today. Cantor Index offers a
spread of 398.2p-392.0p.
Silver hit a two-and-a-half-year high yes-
terday, touching $20.56 an ounce. It has
tracked the rise in gold and base metals
such as copper, lead, aluminium, zinc and
nickel. Since silver also has industrial uses,
strong industrial production numbers in
India and China have caused the jump. But
many spread betters are keeping their stop
losses tight since volatility in silver can be
more pronounced. ShortsandLongs.com has
a daily December spread of $20.39-$20.42.
Having pushed to an all time high this
week, there appears to be no end in sight for
gold’s upside. Safe haven plays remain popu-
lar and as long as uncertainty over the eco-
nomic outlook – especially in the US –
lingers, then this is unlikely to change.
American CPI data is due on Friday so a
poor reading could spark a jump in the
metal. The current IG Index price is
$1,267.33-$1,267.83.
Japan intervened in the FX market for the
first time in six years to control the yen’s
appreciation. The move surprised traders
who had thought prime minister Naoto Kan
less inclined to intervene. The dollar-yen
rally could meet good offers from Japanese
exporters who want to hedge their FX risk.
Spread Co quotes dollar-yen at ¥85.55-
¥85.58. Donata Huggins
TRADERS TAKE PROFITS IN CORN ETCS Supply problems have
ETF Securities’ agriculture ETCs have seen boosted corn prices
their seventh consecutive week of outflows
as traders rushed to take profits. Supply side Picture: REUTERS
problems continue to support prices and
investors have taken advantage of rising
prices to reduce their positions. Outflows
over the past seven weeks have totalled
$313m with last week accounting for $31m.
The outflows are concentrated in ETF
Securities’ corn ETC, which saw the largest
outflow in over two years at $13m. This was
followed by ETF Securities’ sugar ETF at
$6m of outflows.
 28 Markets & Investment CITYA.M. 16 SEPTEMBER 2010

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Aegis . . . . . . . . . . . . . . . . . . . . .121.50* +0.60 137.30 103.10 Dana Petroleum . . . . . . . . . . . .1788.00 +1.00 1817.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.90 +7.20 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . .103.80 +0.10 111.00 70.50 Davis Service . . . . . . . . . . . . . . .395.00 –9.70 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .143.00* +1.50 174.29 114.60 Scottish Mortgage. . . . . . . . . . . .612.50 –0.50 623.50 473.10
African Barr Gold . . . . . . . . . . . .598.00* –21.00 685.00 520.50 De La Rue . . . . . . . . . . . . . . . . . .697.00 –1.00 1021.00 638.00 Lamprell . . . . . . . . . . . . . . . . . . .322.00* +0.80 338.90 156.70 SEGRO . . . . . . . . . . . . . . . . . . . .269.50* +0.10 403.10 244.00
Aggreko . . . . . . . . . . . . . . . . . .1528.00 –12.00 1639.00 664.50 Debenhams . . . . . . . . . . . . . . . . .66.30 –0.90 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .554.00* +3.00 556.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .616.00* –3.00 656.50 479.80
Alliance Trust . . . . . . . . . . . . . . .331.30 –0.20 352.70 292.80 Derwent London . . . . . . . . . . . .1505.00 –17.00 1540.00 1174.00 Land Securities . . . . . . . . . . . . . .639.50 –11.00 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1388.00 –6.00 1404.00 939.50
AMEC . . . . . . . . . . . . . . . . . . . . .950.50 +6.50 958.50 724.50 Dexion Absolute . . . . . . . . . . . . .142.00 — 148.00 125.70 Legal & General . . . . . . . . . . . . .102.40* +0.20 105.00 69.05 Shaftesbury . . . . . . . . . . . . . . . .444.50 +7.90 446.60 341.70
Amlin . . . . . . . . . . . . . . . . . . . . .410.90* –2.60 437.60 350.80 Diageo . . . . . . . . . . . . . . . . . . .1089.00* +2.00 1176.00 930.50 Lloyds Banking Gp . . . . . . . . . . . .77.34 +0.20 78.62 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1521.00* +13.00 1526.00 999.00
Anglo American . . . . . . . . . . . .2550.00* –22.00 3015.50 1846.50 Dimension Data . . . . . . . . . . . . . 119.50 +0.10 125.50 58.90 Logica . . . . . . . . . . . . . . . . . . . .123.20 –1.50 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .566.00 +1.50 700.50 525.50
Antofagasta . . . . . . . . . . . . . . . 1152.00 +1.00 1160.00 699.50 Dixons Retail . . . . . . . . . . . . . . . .24.40 –0.54 39.75 23.11 London Stk Exchange . . . . . . . . .691.50 +2.50 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .153.30* +3.90 155.10 90.30
Aquarius Platinum . . . . . . . . . . .331.00* +7.80 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .478.30 +2.20 481.10 262.20 Lonmin . . . . . . . . . . . . . . . . . . .1669.00 –31.00 2198.00 1344.00 Smiths . . . . . . . . . . . . . . . . . . .1223.00 –2.00 1244.00 814.00
ARM Holdings . . . . . . . . . . . . . . .386.80* –2.20 416.40 132.70 Drax . . . . . . . . . . . . . . . . . . . . . .398.20 –15.70 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .235.60 +3.70 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .461.80 –1.30 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . . 311.90 –2.10 335.30 215.00 Dunelm . . . . . . . . . . . . . . . . . . . .396.00 +10.00 438.40 290.10 Marks & Spencer. . . . . . . . . . . . .379.60 +12.60 412.70 321.90 Spectris . . . . . . . . . . . . . . . . . .1020.00 +10.00 1043.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3348.00 –37.00 3389.50 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .389.90 +2.50 499.90 339.80 Meggitt . . . . . . . . . . . . . . . . . . . .291.00* –3.20 331.00 218.60
Atkins(Ws) . . . . . . . . . . . . . . . . .715.00* –4.00 801.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .428.30 –2.70 436.00 338.00 Melrose . . . . . . . . . . . . . . . . . . .265.20* –0.90 275.10 160.00 Spirax-Sarco Eng . . . . . . . . . . .1680.00 +19.00 1716.00 994.50
Autonomy Corp . . . . . . . . . . . .1809.00 +15.00 2012.00 1278.00 Electrocomponents . . . . . . . . . . .241.90 –0.30 246.30 142.90 Mercantile IT . . . . . . . . . . . . . . . .969.00 –0.50 1002.00 822.50 Spirent Comms . . . . . . . . . . . . . .145.00* +2.80 145.10 84.15
Aveva . . . . . . . . . . . . . . . . . . . .1385.00 –19.00 1487.00 856.50 EnQuest . . . . . . . . . . . . . . . . . . .120.20 +0.10 125.90 87.35 Michael Page Intl. . . . . . . . . . . . .443.60* –5.40 461.50 313.00 Sports Direct Intl . . . . . . . . . . . . .126.70 +2.70 129.10 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .417.70 +0.10 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .459.70 –4.30 475.90 358.50 Micro Focus . . . . . . . . . . . . . . . .367.90* +4.90 550.00 272.20 SSL Intl . . . . . . . . . . . . . . . . . . . 1157.00 +1.00 1190.00 596.50
Babcock International . . . . . . . . .564.50 +13.00 660.50 489.00 Eurasian Nat Res . . . . . . . . . . . .866.00* –18.50 1276.00 781.00 Millen & Copthorne . . . . . . . . . . .538.50* +13.50 547.00 321.40 St James’s Place . . . . . . . . . . . . .273.00* –0.60 296.90 203.40
BAE Systems . . . . . . . . . . . . . . .340.80 +6.40 389.90 288.10 Euromoney Inst Inv . . . . . . . . . . .601.50 +12.00 630.00 286.00 Misys . . . . . . . . . . . . . . . . . . . . .290.00 — 291.20 180.80 Stagecoach. . . . . . . . . . . . . . . . .185.20 +0.40 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .258.80 +3.80 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .674.00 +5.50 677.00 499.00 Mitchells & Butlers . . . . . . . . . . .302.10 –0.80 343.90 228.30 Standard Chartered . . . . . . . . . .1923.50* –7.00 1939.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . .316.75 –7.25 394.25 253.40 Ferrexpo . . . . . . . . . . . . . . . . . . . 311.30* +2.20 396.20 138.00 MITIE . . . . . . . . . . . . . . . . . . . . .200.60 +2.90 269.20 187.80 Standard Life . . . . . . . . . . . . . . .226.20* +4.00 237.00 170.00
Barratt Development . . . . . . . . . .102.70 +0.10 186.56 89.10 FirstGroup . . . . . . . . . . . . . . . . .352.30 –6.30 448.80 331.20 Mondi . . . . . . . . . . . . . . . . . . . . .512.00* +2.00 515.00 296.20 SuperGrp . . . . . . . . . . . . . . . . . 1111.00 +4.00 1150.00 499.00
BBA Aviation . . . . . . . . . . . . . . .195.00* –1.00 220.00 145.90 Foreign & Col Inv Tst. . . . . . . . . .285.60 –0.80 297.20 240.50 Monks Inv Tst . . . . . . . . . . . . . . .320.50 +0.40 322.70 258.00 TalkTalk . . . . . . . . . . . . . . . . . . .137.90 +2.10 147.10 106.60
Bellway. . . . . . . . . . . . . . . . . . . .568.00 — 927.50 510.00 Fresnillo . . . . . . . . . . . . . . . . . . 1189.00* –1.00 1197.00 647.00 Morrison Wm . . . . . . . . . . . . . . .298.50 +2.00 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .443.90 –0.30 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .833.50 –8.50 959.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .252.50* –1.60 285.70 217.70 Murray Intl Tst . . . . . . . . . . . . . . .904.00 +7.50 907.50 689.00 Tate & Lyle . . . . . . . . . . . . . . . . .468.80 –3.00 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . .1093.50 –5.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .498.00 –2.00 506.00 370.00 National Express. . . . . . . . . . . . .244.00 –2.90 258.60 155.86
BHP Billiton . . . . . . . . . . . . . . .1963.00* –18.00 2346.00 1583.50 GKN . . . . . . . . . . . . . . . . . . . . . .159.90* –0.30 164.70 100.40 National Grid . . . . . . . . . . . . . . .560.00 –2.00 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .29.29 +0.15 49.40 24.29
BlackRock Mining . . . . . . . . . . . .608.00 +0.50 654.50 469.20 GlaxoSmithKline . . . . . . . . . . . .1283.50* +1.50 1347.00 1088.00 Next . . . . . . . . . . . . . . . . . . . . .2176.00 +136.00 2360.00 1666.00 Telecity . . . . . . . . . . . . . . . . . . . .524.50 +0.50 542.50 311.30
BlueBay . . . . . . . . . . . . . . . . . . .320.50 +6.10 393.00 251.00 Great Portland Estates . . . . . . . .331.00 –1.60 334.40 236.60 Northumbrian Water . . . . . . . . . .346.60 –3.10 353.00 225.20 Templeton Emrg Mkts . . . . . . . . .587.50 — 598.00 428.60
Bluecrest Allblue GBP . . . . . . . . .167.10 –0.70 169.00 139.20 Greene King . . . . . . . . . . . . . . . .429.80 –1.60 484.00 372.50 Old Mutual . . . . . . . . . . . . . . . . .139.20 +0.30 140.50 91.80 Tesco . . . . . . . . . . . . . . . . . . . . .430.70 +7.45 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .48.75 — 49.50 37.50 Halfords . . . . . . . . . . . . . . . . . . .482.70 –1.30 562.50 324.00 Partygaming . . . . . . . . . . . . . . . .293.30 +1.90 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .196.10* –0.20 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .404.10 –11.10 658.20 296.00 Halma . . . . . . . . . . . . . . . . . . . . .307.40 –2.90 315.30 198.00 Pearson . . . . . . . . . . . . . . . . . .1001.00* +9.50 1069.00 738.00 Tomkins . . . . . . . . . . . . . . . . . . .323.80 +0.10 325.70 155.00
Brit Insurance . . . . . . . . . . . . . . .993.50 +1.50 1017.00 709.00 Hammerson . . . . . . . . . . . . . . . .389.40* +0.80 460.30 332.20 Pennon . . . . . . . . . . . . . . . . . . . .605.50* –2.50 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .828.00 +7.50 915.00 647.50
British Airways . . . . . . . . . . . . . .234.40 –0.60 255.80 172.40 Hargreaves Lansdown . . . . . . . .437.10* +11.10 439.20 259.40 Persimmon . . . . . . . . . . . . . . . . .399.30 +0.30 523.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .221.00* –0.80 313.90 189.20
British Amer. Tob . . . . . . . . . . .2358.50* +3.50 2386.50 1832.00 Hays . . . . . . . . . . . . . . . . . . . . . .109.00 –0.40 119.00 82.50 Petrofac . . . . . . . . . . . . . . . . . .1385.00 –25.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .398.40 +3.40 436.20 261.20
British Empire Tst . . . . . . . . . . . .454.90 +1.50 467.90 338.50 Henderson . . . . . . . . . . . . . . . . .136.10* +1.40 157.80 112.10 Petropavlovsk . . . . . . . . . . . . . .1252.00 +54.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1265.00 –5.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .483.30 –3.70 531.00 416.00 Heritage Oil. . . . . . . . . . . . . . . . .322.70 –1.00 585.00 298.20 Premier Farnell . . . . . . . . . . . . . .270.20 +1.20 272.60 140.60 UK Commercial Prop. . . . . . . . . . .80.65 +0.30 84.90 69.10
Britvic. . . . . . . . . . . . . . . . . . . . .488.80 –3.70 518.00 340.00 Hikma Pharma . . . . . . . . . . . . . .801.00* +1.00 813.00 443.00 Premier Oil . . . . . . . . . . . . . . . .1668.00 +9.00 1681.00 984.00 Ultra Electronics . . . . . . . . . . . .1748.00* +10.00 1764.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .235.30 +5.90 284.30 204.80 Hiscox . . . . . . . . . . . . . . . . . . . .367.10* +7.10 371.10 299.60 Provident Financial . . . . . . . . . . .850.50 –10.00 986.00 795.00
BSkyB . . . . . . . . . . . . . . . . . . . .714.00 –0.50 732.00 521.00 Hochschild Mining . . . . . . . . . . .415.00* +8.80 424.80 220.00 Prudential . . . . . . . . . . . . . . . . . .627.50* +6.50 665.00 475.70 Unilever . . . . . . . . . . . . . . . . . .1778.00* –7.00 2024.00 1628.00
BT . . . . . . . . . . . . . . . . . . . . . . .144.40 +0.40 151.00 108.40 Home Retail . . . . . . . . . . . . . . . .214.50 +2.10 326.30 208.50 PZ Cussons . . . . . . . . . . . . . . . .342.40* –0.30 373.20 222.10 United Utilities . . . . . . . . . . . . . .585.00 –10.00 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .754.50 –2.50 784.50 594.50 Homeserve . . . . . . . . . . . . . . . . .487.40 +1.10 502.00 435.40 Qinetiq . . . . . . . . . . . . . . . . . . . . 114.50 –1.20 179.10 103.50 Utd Business Media . . . . . . . . . .604.00* –2.00 613.00 408.30
Burberry . . . . . . . . . . . . . . . . . . .906.00 +7.00 917.00 457.70 HSBC Hldgs . . . . . . . . . . . . . . . .676.60* +0.40 766.80 595.20 Randgold Resources. . . . . . . . .6245.00 –45.00 6600.00 3930.00 Vedanta Resources . . . . . . . . . .2137.00 +9.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .61.10 +0.10 150.00 53.00 Hunting . . . . . . . . . . . . . . . . . . .644.00 +13.00 659.50 429.10 Reckitt Benckiser . . . . . . . . . . .3448.00* +28.00 3667.00 2938.00 Victrex . . . . . . . . . . . . . . . . . . .1233.00 — 1320.00 726.50
Cable & Wire Wwide . . . . . . . . . . .74.20 +0.25 94.80 60.05 ICAP . . . . . . . . . . . . . . . . . . . . . .454.70 –3.30 478.30 291.70 Reed Elsevier . . . . . . . . . . . . . . .539.00 –0.50 566.00 454.60 Vodafone . . . . . . . . . . . . . . . . . .161.05 +1.10 162.00 126.50
Cairn Energy. . . . . . . . . . . . . . . .433.60 –6.70 497.60 306.80 IG . . . . . . . . . . . . . . . . . . . . . . . .510.00* +0.50 532.00 291.00 Regus . . . . . . . . . . . . . . . . . . . . . .75.40* +0.25 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1407.00 +10.00 1420.00 635.00
Caledonia Invs . . . . . . . . . . . . .1627.00 +6.00 1759.00 1496.00 Imagination Tech Gp . . . . . . . . . .347.70 +0.50 385.00 154.00 Renishaw . . . . . . . . . . . . . . . . . .970.00 –10.00 1021.00 479.00 WH Smith . . . . . . . . . . . . . . . . . .440.00 +3.20 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .767.00* –3.50 829.50 693.00 IMI . . . . . . . . . . . . . . . . . . . . . . .737.50* –3.00 786.00 410.00 Rentokil Initial . . . . . . . . . . . . . . .106.90 –0.10 140.20 91.15 Whitbread . . . . . . . . . . . . . . . . .1585.00 –4.00 1645.00 1141.00
Capital & Counties . . . . . . . . . . .129.50 +0.50 131.00 99.60 Imperial Tobacco. . . . . . . . . . . .1925.00 +2.00 2159.00 1728.00 Resolution . . . . . . . . . . . . . . . . .254.10* +4.50 264.80 220.10 William Hill . . . . . . . . . . . . . . . . .183.40 +1.90 217.80 160.50
Capital Shopping Centres . . . . . .361.00 +1.20 580.00 300.10 Inchcape. . . . . . . . . . . . . . . . . . .287.40 –2.30 347.00 235.00 Rexam . . . . . . . . . . . . . . . . . . . .309.60* — 348.80 253.40 Witan Inv Tst . . . . . . . . . . . . . . . .458.50* –2.30 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .317.50* +3.60 361.90 263.90 Informa . . . . . . . . . . . . . . . . . . . .417.00* –3.10 439.40 263.30 Rightmove . . . . . . . . . . . . . . . . .730.00 –5.00 796.50 456.90
Carnival . . . . . . . . . . . . . . . . . .2366.00 –33.00 2937.00 1876.00 Inmarsat . . . . . . . . . . . . . . . . . . .724.50 +5.00 831.00 526.00 Rio Tinto . . . . . . . . . . . . . . . . . .3572.50 –49.50 4104.00 2435.00 Wolseley . . . . . . . . . . . . . . . . . .1434.00 –1.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .340.10* –5.80 394.60 303.20 Intercontl Hotels . . . . . . . . . . . . 1118.00* +3.00 1244.00 762.50 RIT Capital Partners . . . . . . . . . 1134.00 +1.00 1215.00 940.00 Wood Group (John). . . . . . . . . . .384.80* –6.60 411.70 279.60
Centamin Egypt . . . . . . . . . . . . .168.40 +2.40 188.70 92.00 Intermediate Capital . . . . . . . . . .291.80 –0.80 332.00 233.50 Rolls Royce . . . . . . . . . . . . . . . .584.50 +0.50 631.50 434.50 WPP . . . . . . . . . . . . . . . . . . . . . .712.50 +9.00 744.00 520.50
Centrica . . . . . . . . . . . . . . . . . . .342.50 –1.50 346.10 236.30 Intertek . . . . . . . . . . . . . . . . . . .1800.00 +6.00 1808.00 1136.00 Rotork . . . . . . . . . . . . . . . . . . .1685.00* +16.00 1693.00 1050.00 Xstrata . . . . . . . . . . . . . . . . . . . 1160.00 –10.00 1344.50 815.00
Charter Intl . . . . . . . . . . . . . . . . .666.50 –11.00 855.50 563.50 Intl Personal Fin . . . . . . . . . . . . .270.30* +0.10 283.00 135.30 Royal Bank Of Scot . . . . . . . . . . . .49.66 –0.49 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2950.00 –26.00 3711.00 2284.00 Intl Power . . . . . . . . . . . . . . . . . .388.60 –5.90 396.80 248.20 Royal Dutch Shell A . . . . . . . . .1861.00 –5.00 2068.50 1621.00
Close Bros . . . . . . . . . . . . . . . . .705.50 +5.00 806.50 657.00 Invensys . . . . . . . . . . . . . . . . . . .277.10 +0.10 350.30 224.90 Royal Dutch Shell B . . . . . . . . .1807.50 — 1997.50 1550.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .236.30 –2.00 278.60 205.50 Investec . . . . . . . . . . . . . . . . . . .510.00 — 565.00 411.50 RSA Insurance . . . . . . . . . . . . . .129.40* +1.90 142.00 114.10
COLT Group . . . . . . . . . . . . . . . . 119.90 +0.60 144.20 107.70 ITV . . . . . . . . . . . . . . . . . . . . . . . .57.15 –0.50 71.75 41.04 SABMiller . . . . . . . . . . . . . . . . . 2011.50 +43.00 2090.00 1450.00 www.interactivedata.com

Commodities drag FTSE 100 Wall St edges up

down as US output eases despite poor data
markets, said a double-dip recession ing almost 9 per cent. shares lost ground after some bearish

THELONDON is unlikely and sees the FTSE consoli-

dating into 2011.
The UK blue chip index carried a
12-month forward price-to-earnings THENEW YORK analyst comments.
Equities were little moved after the

REPORT REPORT
“At current levels, the FTSE has of 9.84 times, versus a 10-year average Japanese government intervened in
already troughed. While the picture of 14.86, Thomson Reuters global currency markets to sell yen
going forward is still very unclear, I Datastream showed. for the first time in six years, though
do not think any downside will push Fashion retailer Next led blue-chip the US dollar climbed.

C
OMMODITY stocks pulled us below 4,800 seen in July,” he said, gainers, up 6.7 per cent after meeting October crude futures settled down

S
Britain’s top shares lower yester- forecasting the FTSE to be around the forecasts with a 13 per cent gain in TOCKS advanced yesterday on 1 per cent to $76.02 per barrel, while
day as US data showed a sharp 5,675 level by mid-2011. first-half operating profit and keep- Wall Street but remained the S&P Energy index lost 0.2 per
slowdown in industrial output, BP fell 2.7 per cent. The oil major ing its full-year outlook unchanged. hemmed in a recent trading cent.
and after investors switched into the lacked a clear chain of command for Other retailers also benefited from range as disappointing econom- Chevron slipped 0.4 per cent to
dollar after The Bank of Japan’s yen dealing with a loss of well control on Next’s success, with Marks & Spencer ic data hindered the S&P 500 from $79.21 and was among the top declin-
intervention and recent sharp gains. a North Sea oil rig, safety regulators and Kingfisher each up 3.4 per cent, breaking through a stubborn techni- ers on the Dow.
The FTSE 100 index closed down found three months before a blow- while supermarket groups Tesco and cal level. Fellow Dow component Kraft Foods
11.85 points, or 0.2 per cent at out in the Gulf of Mexico caused WM Morrison added 1.7 per cent and Markets were pressured early by a gained 1.7 per cent to $31.59 after say-
5,555.56, snapping a five session win- America’s worst ever oil spill. 0.6 per cent respectively. report showing a measure of New ing it would squeeze another $1bn in
ning streak, having inched higher Health and Safety Executive (HSE) Elsewhere on the downside, York state business conditions slipped revenue from its global business by
late on Tuesday to extend Monday’s inspectors visiting the Magnus plat- AstraZeneca shed 1.9 per cent after to the lowest level in more than a 2013 as its North American business
four-month closing peak. form 160km northeast of the saying US regulators had extended year, while industrial output rose at a faces challenges.
Heavyweight mining and energy Shetland Islands in late January dis- their review of the drugmaker’s slower rate in August. Semiconductors edged lower after
stocks fell in tandem with crude and covered there was confusion about potential new blockbuster heart drug The S&P found support shortly Goldman Sachs downgraded chip-
base metal prices as worries persisted who would order a well shut-off in Brilinta by three months. Banks were after the reports at its 200-day moving makers Micron Technology to “neu-
over the choppy economic recovery in the event of a blow-out, according to easier. The session marked the two- average, climbing back above the tral” and Maxim Integrated Products
the US. documents published on the HSE year anniversary of the collapse of 1,115 level. to “sell.”
Industrial output data from the website on Wednesday. BP also failed Lehman Brothers, which sparked tur- But the benchmark index was once Micron shares lost 4.5 per cent to
world’s biggest economy showed a to provide adequate safety training to moil in global financial markets. again unable to pierce the 1,130 $6.94 and Maxim shed 0.5 percent to
rise of 0.2 per cent in August, match- North Sea staff and to conduct ade- threshold, seen as a key resistance $16.75. The Philadelphia semiconduc-
ing expectations for a sharp slow- quate oil spill response exercises. ANALYSIS l FTSE 5,555.56 level by analysts, which, if breached, tor index fell 0.3 per cent.
down from the prior month when Declines were curbed as US indexes
5600 p 15 Sep could spark further buying. Volume was light with about 6.6bn
auto production was unusually showing some resilience following 5400
The Dow Jones industrial average shares traded on the New York Stock
strong. the industrial output figures provid- gained 46.24 points, or 0.44 per cent, Exchange, the American Stock
Investors also saw better value in ed encouragement to the bulls. 5200
to 10,572.73. The Standard & Poor's Exchange and Nasdaq, well below last
switching funds into the US dollar As the UK market closed the Dow 500 Index rose 3.97 points, or 0.35 per- year's estimated daily average of
after the Bank of Japan intervention Jones and S&P 500 were firmer. 5000
cent, to 1,125.07. The Nasdaq 9.65bn.
to curb yen strength, and following Both US indexes have lagged the Composite Index climbed 11.55 Advancing stocks outnumbered
the recent strength in commodities. FTSE’s rally over the last three weeks. 4800
points, or 0.50 per cent, to 2,301.32. declining ones on the New York Stock
Despite continuing concerns over London's blue chips have broken out Among the top decliners, energy Exchange by about 1.1 to 1, while on
the recovery in the United States, of their two-month trading range, 4000 shares were pressured by a fall in the Nasdaq, advancers beat decliners
Jimmy Yates, head of equities at CMC touching four month highs and ris- 21 Jun 9 Jul 29 Jul 18 Aug 8 Sep crude oil prices and technology four to three.
 City Focus
Be ready to leap when the market turns
The recruitment landscape has
changed, and it pays to keep up
to date, writes Jeremy Hazlehurst
T
HE popular obsession with City pay
has not gone away, as was in evi-
dence recently when the news that
Bob Diamond will become CEO of
Barclays was accompanied by lurid head-
lines about the “bonus banker”. City remu-
neration might be a dog-whistle issue for
tabloids, but it’s also a big issue for every-
body who works here, especially if you are
considering a move at any point in the
next few months – before or after the
bonus round that starts in December.
So what is the state of play? Pay-wise,
things are looking up. Earlier this week
professional services firm Deloitte pub-
lished a report asking: “Is it business as
usual for executive pay?” It concluded that
in FTSE 100 companies in 2010 the median
bonuses for directors of the top 30 compa-
nies were 140 per cent of salary, almost 20
per cent higher than last year and close to
pre-crisis levels. For the others, they were
100 per cent of salary, again numbers rem-
iniscent of the boom days.
Just a few days later, recruitment firm
Norman Broadbent also published a report
which said that we are seeing the emer-
gence of a “bulge bracket” of top banks
which “are starting to operate differently
from the rest” and where pay is exception-
ally high. Although bonuses are not as
high as they were, there has been a com-
pensatory rise in base pay, which has
increased by 50-100 per cent in the last
year, says the report.
In terms of remuneration, things are
looking healthy in the top echelons of
the City, then. That said, the market is
still slow. But you should be aware that
regulatory and commercial pressures
have changed things significantly across
the board. Nimble footwork is needed to
make the best of the new realities. So
when the time comes for that job-move,
what should you be asking for?
Thomas Drewry, managing partner at
executive advisory and search firm Veni
Partners, says that compensation packages
have become “as much about regulatory
compliance as a commercial decision” and
some practices have all-but vanished. For
example, two-year guarantees are now far
less common. Ditto dual contracts, where
an employee is paid in two jurisdictions in
a tax-efficient way – these were once stan-
dard for senior bankers. “These days you
have to prove that you have a legitimate
ODD JOBS
A lawyer talks blood-spattered bodies and
explains why convicts send her flowers
MIA WELLFARE
CRIMINAL BARRISTER
I
became a lawyer because I strug-
gled at school socially and wanted
to go to the local college, but you
could only do that if you took a sub-
ject they didn’t do at the school, so I
| Careers
Just hold on
a bit longer
Picture: GETTY
business connection with both countries
where you are paid,” Drewry says.
Other practices have replaced these.
Base salaries, of course, have increased to
compensate for a loss in cash bonus and
have doubled in many cases. Bonuses have
a much heavier stock component than
before. This means that if you are contem-
plating a move, then you should make sure
you are confident about the firm’s long-
term prospects. A mercenary move is not a
good idea in this market.
Be aware too that accelerated stock vest-
ing has recently been banned by the FSA.
This was a technique whereby your stock
in one company could be transferred to
another very quickly, rather than taking
the usual three years. However, some
banks are still offering all cash sign-ons to
sweeten any deals. Norman Broadbent say
that buy-outs are also on the agenda, and
deals worth 200 per cent of salary are not
unknown.
Of all these, the most significant change
is the proportion of remuneration in stock.
On the face of it, this suggests that long-ter-
mism is the best policy for your career. But
while it might look that way now, don’t get
complacent. Once the markets return to
buoyancy, then things will change again
and a long stay at one employer might
chose to do law A-level. I was taught by a
female barrister and she was so exciting
and glamorous that I decided I wanted
to go and be a young lady barrister in
London. I was called to the bar six years
ago and I work in the chambers of John
Coffey at 3 Temple Gardens, and I spend
a lot of my time in the Old Bailey,
Southwark and Blackfriars Crown
Courts.
I do a lot of serious violence cases,
some sex cases and drugs. I recently did
a child abuse case, and not that long ago
I defended a bigamist. I’ve just had my
first rape case, which was very exciting,
and also my first attempted murder.
There can be interesting moments – I
WHY I LOVE 29
THE KINDLE
SEE BOOKS, P31
50-
110%
increase in base
pay at big banks
in 2010
140%
of base salary
paid in bonuses to
top FTSE 100
directors
150%
of salary FTSE
350 directors hold
in stock
actually work against you. thinking is best for your long-term career
Andrew Hanson, director of financial goals, if that doesn’t sound too paradoxi-
services at recruiter Robert Walters says: cal. The odds are that the market we see
“Somebody who has worked in two or around us does not reflect a permanent
three organisations is often a more attrac- change, but a blip. Sooner or later the
tive candidate – they will have experience City’s favourite recruitment technique –
of different environments, systems, man- the tap on the shoulder – will be back with
agement and business structures.” a vengeance. When business as usual does
The general rule is that short-term return, you should be ready for it.
10 NEGOTIATION TIPS | PHILIP HESKETH
You need to accept that the negotiation ask your employer before the meeting l Consider everything in the deal. It’s not
started before the salary review meeting, how you can help them achieve their just about basic salary and bonus.
it’s built into the whole employee-employ- objectives. l Agree only with a struggle. You were
er relationship. So you need to build your l Don’t talk about how much you need – always expecting more.
own value, the contribution you make and talk about how much you contribute and l Endeavour to agree you are worth
your employer’s perception of you well in your plans to contribute more. more next time if you achieve more.
advance of the meeting. Here are the 10 l If you want to be a director start l Tie up all the details. Write down what
top tips to maximise on your chances of a behaving like one now. the negotiator said.
good salary increase. l Never put your marker down first. It’s Philip Hesketh is a professional speaker
l Do your research on what people always possible they had a higher salary on the psychology of persuasion and the
around you earn and have a clear view on in mind than you. author of the bestselling book, How to
what you think you are worth. l Keep neutral body-language. Don’t look Persuade and Influence People.
l Build your value to the company and or sound desperate. But be persistent. www.heskethtalking.com
have been attacked in a cell by some-
body who was undiagnosed with bipolar
them they were almost sick, but it’s just
life. Whatever they’ve done, you have to
disorder and he thought I’d come to
arrest him. But I’m a tough girl and I
think of your client as a person. If
they are guilty, it’s a question of get-
can take it. ting them what they need – the
You learn about all sorts of things in right kind of counselling or
this job – a couple of years ago I had a rehabilitation to help them
case where somebody had graffitied improve their lives. If you can
trains, so I learned all about graffiti, stop them reoffending, that’s
and went to lots of exhibitions of the best thing for society, too.
street art. A lot of it is violent crime, I frequently get flowers and
though. I also know all about blood- champagne from people who
spattering and how to best dispose of were convicted and have done
a body. their time and are able to move for-
Some barristers say they ward.
get hardened to the vio- It’s an exciting job, and I never
lence, but I don’t think I know what I will be doing the next
am. Not long ago I day. When a stack of papers come in
defended somebody with a red ribbon it could be any-
who had bitten off thing, I am still excited by untying it
somebody’s ear and I and finding what I am working on, I
was leafing through the pictures at my still get butterflies in my stomach. My
birthday barbecue. When the jury saw aspiration is to become a district judge.
 Lifestyle
30
The idiot box gets smart –
and threatens old media
Internet TVgives you
free content online –
so why pay a boring
old subscription fee?
asks Juliet Samuel
M T
ODERN technophiles are already
used to multi-tasking online. And
with online mainstays now ven-
turing into the coveted space of
TV entertainment, attention spans are set
to encounter another challenge.
Google TV is due to launch in the US by
the end of the year to rival Boxee – a serv-
ice built originally from open source Xbox
software code – while Apple TV has been
slimmed down in preparation for its UK
launch at a retail price of £99.
Preview screenshots show that Google
TV users will simultaneously have the abil-
ity to watch TV in one corner of the screen
and browse online content related to the
programme on the rest of it.
So while technophobes wheel out argu-
ments against the mesmerising gaze of tele-
vision turning its consumers into passive
couch potatoes, the TV of the future is more
likely to join smartphones and Twitter as a
relentless source of hyperactivity.
But what do these sleek new appendages
to the idiot box actually add? And, crucially,
can these flashy services distract us from a
more important development: the growing
accessibility of low-cost – or even free –
online TV.
Already it is possible to watch TV feeds
online through services like hulu.com and
ivi.tv. And there is an ever-expanding range
of TV apps for mobiles, such as Rok TV,
which offers Blackberry users live feeds of Internet TV threatens
ITN and Reuters for just over £3 per month. the power of the old
Detractors argue that many of these so- idiot box
called new developments are just rehashes
of existing services. PC World’s Barbara Picture: GETTY
Hernandez dismisses Apple TV as “a glori-
fied TiVo nobody needs”. The Apple TV box
lets users purchase episodes in TV quality a
la carte – but why bother when you can
watch and share many online for free
through legal services like Hulu?
Hernandez suggests other functions that
could help rivals out-manoeuvre Apple’s
GADGETS | NEWS IN BRIEF
COMMANDOS EMBRACE TWITTER
Even as US commanders are still grappling with
the implications of Wikileaks’ publication of
sensitive military intelligence regarding
Afghanistan, their fellows this side of the
pond are embracing new media – albeit with
limits. As he leads 450 men into battle,
Lieutenant Colonel Dougie Graham will be sending
updates of his progress to Twitter, subject to mili-
tary approval. He told the Telegraph: “I would
like to be able to give people a feel for the real-
ity because it’s not all fighting, it’s not all
bombs and bullets. What we’re trying to do is
draw everything together so that we can get
messages of support to the men, as well as updates
of what the battalion’s been doing back home.”
SMARTPHONE BOASTS ANDROID IN HD
HTC has finally unveiled the much-anticipated HTC
Desire HD, an HD version of the heir to the G1 smart-
phone that first boasted Google’s Android platform and
a decent rival to the iPhone. The Desire offers users a
full QWERTY keyboard, like its predecessors, as well
as an 8-megapixel camera, a 4.3-inch screen and the
use of Android 2.2.
| Gadgets
prescriptive offering, including video-con-
ferencing and an ability to store one’s
media library online.
Paul Entwistle of Pace – a leading manu-
facturer of set-top boxes – agrees that mak-
ing content mobile is key. In the future, he
says: “The content will belong to the viewer,
not to one particular device, and they will
have the power to transfer it around the
devices operating in their home, whether
it’s the TV, the PC screen or the iPad.”
But there is still a major barrier to the lib-
eralisation of TV content: old media. While
new media firms like Apple and Google are
striking deals that add limited functionality
and don’t threaten the subscription TV
model, new firms like ivi.tv have less incen-
tive to play nice. ivi.tv offers a full TV service
for free on your computer (unfortunately
only in the US), which it promised would be
“highly disruptive”.
Its CEO Todd Weaver
says: “The cable industry
has spent countless millions of
dollars on so-called ‘TV
GADGETS | REVIEWS
AMAZON KINDLE
£149 with 3G www.amazon.co.uk
hhhhi
A
CONFIRMED fan of Amazon’s Kindle e-
book reader, I was lucky enough to be
given the latest model to play with in
advance. If you’ve seen the ads on the
Tube and wondered whether to join the e-
book revolution, the new Kindle is unlikely to
disappoint.
Everywhere’ solutions to prop up outdated
technology and business models. ivi
empowers its users to experience TV
Anywhere, offering them major broadcast
channels delivered live to their laptop or
desktop, making the set-top box and any
‘Web to TV’ products obsolete. Instead of
attempting to bring the web to the TV, ivi
intuitively brings TV to the web.”
To compete in such a world, old media
companies need to start offering services
beyond mere content. Whether viewers are
willing to pay the same prices just for a
high-quality picture or the ability to search
their programmes remains in question.
In other words, your living room is about
to be engulfed in the same dilemma that is
tearing apart the traditional, paid-for
music and newspaper industries: how to
get users to pay for content they can now
access for free.
So it’s a shame that the new multi-task-
ing services on offer mean that we might
not have the attention span to follow the
debate.
This is the second Kindle available in the
UK. The previous model was slim and Apple-
pretty, but many important features were
disabled outside the US. The new Kindle has
been properly integrated with Amazon’s UK
services. It has also been significantly
improved.
A 3G Kindle now weighs just 247 grams,
comparing favourably to 730 grams for a 3G
iPad. There is much better contrast on the e-
ink screen, and the Kindle’s battery can now
go 10 days between charges with 3G on.
You will, incidentally, want to pay £40
CITYA.M. 16 SEPTEMBER 2010
NICK
BOOTH
TECH TALK
A raft of new
apps to help
you find deals
HE everything-is-cheaper-online myth
was created by the retail industry so
they could charge you more and work
less. That said, Google has created a
price comparison website for phones that
run Android. OK, it’s slow on my handset, but
Google Shopper is worth the wait – and
you’ll wait even longer to see it on iPhone.
Still, these price comparison websites
aren’t perfect, so you need back up sources
of information. TheFashionPixie.com (for
iPhone) is promising. It gives you up-to-date
information on all the latest sales and vouch-
er codes that you can print off. Gap, Phase 8,
Joules and White Stuff are all offering big
discounts on the site. One deal, with
Very.co.uk, gave a £10 discount, even for
goods that cost £10. So you got it free. They
slashed £1,000 off designer bags (Prada,
Marc Jacobs, Gucci) in a Selfridges sale.
If you’re disciplined, you’ll trawl sites like
Vouchercodes.co.uk and print off all the rele-
vant discount voucher codes before you
start. Having done that, use Yell.com to map
out your shopping strategy.
Fancy some online collective bargaining?
The creators of comparison site Kelkoo.com
have now formed a buying club, Key Noir. By
aggregating buyers, they drive down prices,
giving you up to 65 per cent discounts. A full
makeover at Butterfly Salon in Cornhill was
bargained down from £85 to £30 on
KeyNoir.com. It’s good for hotel and restau-
rant deals too, if you’re out and about with
an iPhone.
OK, sometimes goods are cheaper online.
But buying them is more dangerous.
Secure yourself with a Visa card
with Dynamic Passcode
Authentication – it’s all the rage in
digital banking circles, such as
Visaeurope.com.
Had a row over the shop-
ping? Use your mobile to
apologise. For £1.49
Touchnote.com lets you
create and send a physi-
cal card using the pho-
tos on your iPhone,
Symbian and
Android. My wife
sent me one say-
ing, “Ok, did your
bum look big in
those trousers? You
be the judge! See attached
photo.” Nick Booth is the edi-
tor of mobbed-online.com.
extra for 3G. Free global 3G is a bargain, even
if the Kindle’s web browser is fairly limited.
Having 3G also makes it easier to subscribe
to blogs that update through the day, or even
share your favourite passages as you read on
Twitter and Facebook.
The Kindle’s light weight and a storage
capacity of up to 3,500 books make it an
ideal solution for global travellers and com-
muters looking to keep up with their reading
on the move, although I find it less handy for
reading downloaded pdfs and work docu-
ments. Marc Sidwell
CITYA.M. 16 SEPTEMBER 2010
Another month,
another e-reader
The launch of a new Kindle proves how fast we’re
moving away from paper books. Is this a good thing?
MARC SIDWELL
YES
I
HAVE seen the future of books, and it
isn’t lumps of dead tree. Whether the
iPod of books turns out to be
Amazon’s Kindle, Barnes and Noble’s
Nook or Sony’s Reader – or even Apple’s
iPad – these readers will catch on. The e-
ink screens favoured by everyone but
Apple still can’t do colour or video,
though they already match the book’s
main advantages over computer screens:
crisp contrast and pages that can be read
in any light without hurting the eye.
But e-readers aren’t just as good as
books – they are better than books. I love
my library for its content, not its format,
and the idea of having my library always
with me, just as we all now carry our
music collections on MP3 players, is noth-
ing short of miraculous. Now I have a
Kindle, I can search easily across the
whole collection instead of flipping vain-
ly through a shelf of heavy books for the
right page. And if I think of a new book I
want to try or buy, I can be reading it in
seconds wherever I am. And when you
want to annotate, you don’t have to inter-
rupt your train of thought by scrabbling
around for a pen – yes, you can scribble
on e-readers, too.
There are those who will always
love the feel of paper books. But
there were those who loved manu-
scripts and scrolls more than the
products of the printing press.
Paper books will become a niche
market, and those who couldn’t
live without them will die and be
replaced by generations who can’t
imagine why we lugged those old-
fashioned things around.
Roast New Season Grouse
Justerini & Brooks Red Burgundy
Game dish of
the year
Restaurant
Magazine 2008
ZOE STRIMPEL
NO
FEW weeks ago I lost my diary and
A declared so in a round-robin email.
About half of the responses were
remonstrations about still having a
paper diary.
To which I said, if I had to look at a screen
and tap at a keyboard any more than I do
already for work (and the odd bout of
Facebook stalking), I would be sick. Or I’d go
mad. Or I’d fall into a deep depression. The
human eye was not made to bend itself on
a chimera of pixels; combinations of galli-
um arsenide, polarised glass and mercury.
It’s bad enough staring at one all day, every
day in a professional capacity. I told my
Many people will miss detractors that it is a pleasure to take out a
reading real books. pen and paper and write my appointments
Others, well, might in it; also, to feel the crackle of well-penned
not. pages.
Books are on a different level entirely.
They are not just purveyors of information
and language, but meaningful objects
themselves. In the days before you snug-
gled up with your iPad, you snuggled up
with your favourite book – and a damn
sight more comforting it was. Rather than
being confronted by endless choice and
another shifty screen, you had one
story, with one typeface, framed in
nice neat pages and a solidity that
can only be described as earthy
and life-affirming. The brain
could settle, the soul engage. Tell
me how that’s possible on a
machine that is constantly prof-
fering something else? Those
beguiled by the promise of end-
less choice are chasing the
wrong rainbow, particularly
when it comes to books.
£27.50
Boisdale of Bishopsgate
Reservations on 020 7283 1763
Boisdale of Belgravia
Reservations on 020 7730 6922
Books | Lifestyle
Spies and Russians in
classic le Carré London
Gangsters and spies
still thrill if done well,
says Zoe Strimpel
OUR KIND OF TRAITOR
BY JOHN LE CARRÉ
Viking, £18.99
hhhii
A LE Carré book is an event whether
you’re a fan or not. He is the last great
British thriller writer, a former spy for MI5
and MI6, and a man with an intellectually
political core. He also manages to provide
page-turners in a way that makes Dan
Brown’s attempts at writing seem ludi-
crous and cheap.
Having left his old favourite topic of the
Cold War behind, le Carré has embraced
such modern crises as the war on terror,
post-Soviet Russian gangsters and their
skulduggery, and the underhanded behav-
iour of big business in the developing
world. He is, perhaps surprisingly, a lefty
through and through.
In his latest book, a smart young couple
– Perry, an Oxford professor and Gail, a
lawyer – head to Antigua for a tennis holi-
day. Once there, they meet Dima, a tat-
tooed Russian gangster who oozes money.
A money launderer who has spent 15
years in prison, Dima is wanted dead by
some of the fouler elements in his world,
and desperately wants to attain a safe-
haven in England with his daughter at
with a glass of
The Lamb at Hindon
Reservations on 01747 820 573
Subject to availability from
17th August until 30th September
31
John le Carré was
born David John
Moore Cornwell.
Picture: GETTY
Roedean. Gail and Perry become roped in
as the middlemen between Dima and the
British secret service – in return for asy-
lum, Dima’s prepared to vomit up reams
of top secret names and crimes that are
more shocking than anyone at MI6 had
imagined. As usual with le Carré, machi-
nations in London are just as corrupt as
those in Russia and those official agents
meant to be patriotic and loyal are, in the
end, easily bought off.
The book is sophisticated and thrilling –
but not always as juicy as it could be. One
has the sense that Le Carré is getting a bit
tired, perhaps a bit bored of spinning
these psychologically-embellished tales of
intrigue. The only real flaw, though, is
Gail and Perry’s involvement – just why
they’re willing to put their lives at risk for
a minor oligarch is never quite clear.
Suspending disbelief for more minor
authors is one thing; with le Carré, one
rather hopes not to have to do it.
LAST NIGHT AT CHATEAU
MARMONT
BY LAUREN WEISBERGER
Harper Collins, £7.99
hhiii
THE new book from The Devil Wears
Prada author should satisfy any literary
sweet tooth. Brooke and Julian live happi-
ly in New York; she’s the breadwinner and
he’s a struggling musician. Suddenly he is
discovered by a Sony exec and becomes a
star. When Julian is photographed in a
compromising position at the Chateau
Marmont, Brooke has to decide if she’s
going to sink or swim.
 32 Lifestyle | TV& Games CITYA.M. 16 SEPTEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm CHOICE EastEnders;
BBC News
8pm Watchdog
9pm The Young Ones
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm FILM K2: With
Michael Biehn 1991; Holiday
Weatherview
1.25am Sign Zone: Panorama
1.55am Sign Zone: Countryfile
2.55am Sign Zone: Ben Fogle’s
Escape in Time 3.40am Sign Zone:
Britain’s Empty Homes 4.10am-
6am BBC News
5pm The Pope’s Visit 2010
7.30pm Coast
8pm James Wong and the
Malaysian Garden: The garden
designer searches for
inspiration in Malaysia.
9pm Gareth Malone’s
Extraordinary School for Boys:
The choirmaster introduces an
element of competition to
improve reading skills.
10pm Mock the Week: With
Stewart Francis and Ed Byrne.
10.30pm Newsnight: Weather
11.20pm Ride of My Life: The
Story of the Bicycle
12.20am Glastonbury 2010
2.20am BBC News 4.10am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away: Tony
6.30pm ITV News 6.30pm Hollyoaks discovers Rachel’s ticket to
7pm Emmerdale 7pm Channel 4 News Boston.
7.30pm Keeping the Faith?: 7.55pm 4thought.tv 6.25pm Live from Studio Five:
Tonight 8pm Location, Location, Topical reports.
8pm CHOICE Emmerdale Location 7pm Five News at 7
8.30pm Coronation Street 9pm Alan Davies’ Teenage 7.30pm Live UEFA Europa
9pm Law & Order: UK: Steel Revolution: The actor examines League Football: Liverpool v
pushes the boundaries of the how Thatcher’s Britain was Steaua Bucharest (Kick-off
law to the limit in a prosecution. divided by political debate. 8.05pm).
10pm ITV News at Ten 10pm CHOICE True Blood 10.10pm FILM Outlaw: EASTENDERS
10.30pm London News 11.20pm FILM Aliens: Sci-fi, Premiere. Crime drama, BBC1, 7.30PM
10.35pm FILM On Deadly with Sigourney Weaver. 1986. starring Sean Bean. 2007. Sam is left reeling after the revelation
Ground 1994 2.10am The Fairy Jobmother 12.10am SuperCasino of her deceit and struggles with the
12.30am The Zone; ITV News 3.05am This Is Me 3.10am The 4.05am Chinese Food in Minutes idea of being a single parent and Ronnie
Headlines Trouble with the Pope 4.05am 4.30am House Doctor 4.55am has some life-changing news for Jack.
2.30am The Jeremy Kyle Show Cameron’s Black Tory 5am Rough Guide to Beaches 5.10am
3.25am Keeping the Faith?: Tonight Countdown 5.45am-6.10am Yo The New Tomorrow 5.35am-6am
3.50am-5.30am ITV Nightscreen Gabba Gabba Michaela’s Wild Challenge

SKY SPORTS 1 1.30am Championship Rugby 3.50am Girls of the Playboy 12.05am Scrubs 1.05am 4.40am Mystery Investigator:
SATELLITE & CABLE

7pm Sky Sports News at
Seven 7.30pm Premier League
World 8pm The Rugby Club
9pm Ringside Special 10pm
Time of Our Lives 11pm The
Rugby Club 12am Ringside
Special 1am Time of Our Lives
2am Premier League World
2.30am-6am Premier League
Snooker
SKY SPORTS 2
6.30pm Race World 7.30pm
Live Premier League Snooker
11pm European Tour Golf
12.30am Golfing World
1.30am IAAF Athletix Weekly
2am Sailing 2.30am-4am
European Tour Golf
SKY SPORTS 3
7pm NRL Fulltime 7.30pm Live
Championship Rugby League
9.30pm Super League’s
Supermen 10pm WWE: Late
Night – Raw 12am WWE: NXT
1am NRL Fulltime
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Wakestock 2010
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7pm Fight Club 9pm Live
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Football 11pm Rallying 11.15pm
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12.15am-1.00am Table Tennis
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5.30pm Live UEFA Europa
League Football 10.15pm Goal!
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Highlights 1.30am ESPN
Scottish Premier League Kicks
2am Live Major League Soccer
4am ESPN Kicks Extra
4.15am-5.15am 30 for 30
LIVING
7pm Four Weddings US 8pm
Private Practice 9pm My Fake
Baby 10pm Criminal Minds
12am CSI: Crime Scene
Investigation 2am Charmed
Mansion 4.40am Make Me a
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BBC THREE
7pm Live Women's World Cup
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Britain’s Really Disgusting
Drinks 10pm EastEnders
10.30pm The King Is Dead
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and Her 12.15am Britain’s Really
Disgusting Drinks 1.15am The
King Is Dead 1.45am E20
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1.30am Facejacker 2am Joan Does That Work?
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
13 27 14 8 29 38 7 
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22 6
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(1854-1932) (5)
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2 Bring dishonour upon (5)
4 Victoria Beckham’s
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E M priest (4)
5 Opaque gem (4)
6 Store for goods and
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A 9 Tree with sharp
thorns (6)
merchandise (9)
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LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R K 10 Arabian ruler (4) 13 Black wood (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
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11 Remedy (4)
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ANELKA FIRES BLUES
TO A WINNING START
TWO-GOAL NIC LEADS BLUES ON
A EURO STROLL IN SLOVAKIA: P34

Booze-free Westwood ready for Ryder SPORT | IN BRIEF

Gollings to captain Sevens
RUGBY UNION: Ben Gollings has been
named as captain of the England
is convinced he has recovered from a Westwood’s confidence will pro- regime to shape up for the competi- Sevens team for next month’s
▲

GOLF
BY FRANK DALLERES
ENGLAND’S Lee Westwood insists he
is over his injury troubles and ready
to spearhead Europe’s quest to
reclaim the Ryder Cup next month.
Westwood, the world No3, has not
struck a ball competitively since
pulling out of the WGC-Bridgestone
Invitational seven weeks ago.
But Europe’s highest-ranked player
ruptured calf muscle and will be fit
enough to play a full part against the
United States at Celtic Manor.
“I haven’t had any pain for three
weeks,” said Westwood. “I’ve made
great progress. I’m pretty strong at
the moment. I’d be fine playing in all
five matches [at the Ryder Cup]. I’ve
been working with my coach, Pete
Cowen, and he says I’m swinging it
better than I was before.”
vide a major boost to the European
camp just two weeks before the bien-
nial contest tees off in Wales.
Earlier this week vice-captain Paul
McGinley admitted Westwood’s
injury had “hurt” their prospects and
was the team’s biggest problem.
The Worksop player has also
revealed he has cut out alcohol for
the past month and lost almost a
stone in weight as part of a strict
tion. “I haven’t had a drink in four
weeks and have lost 12lbs since the
Open,” Westwood added.
Westwood will step up his come-
back by playing in a charity event in
Scotland early next week before play-
ing back-to-back rounds on Friday in
order to prepare for the competition’s
heavy schedule. He said: “I just want
to replicate the Ryder Cup with two
matches in one day.”
Commonwealth Games in Delhi.
The 30-year-old former Harlequins
fly-half, who now plays in New Zealand
for Tasman, will be competing in his
third Games after playing in Manchester
in 2002 and winning a silver medal in
Melbourne in 2006.
England face Namibia, Australia and
Uganda on day one of the 16-team tour-
nament on 11-12 October.
SQUAD: G Barden, K Barrett, J Brake,
D Caprice, C Cracknell, I Damudama, B
Gollings, S Hunt, D Norton, T Powell, J

Notts curse
Rodwell, M Turner.

Exiles announce new deal

RUGBY UNION: London Irish have
announced internet security provider
Trend Micro as their new kit sponsor

rain as title
and partner for the 2010-11 Aviva
Premiership season.
The company logo will be branded on
the first-team shirt and Trend Micro will
also become title partner in the club’s
community programme.

charge fades
Richard Marsh, London Irish's com-
mercial director, said: “Trend Micro have
an ethos of continually striving for fur-
ther success, this dovetails perfectly
with London Irish.”

Grant excused for Yom Kippur

FOOTBALL: West Ham boss Avram
first-ever County Championship title, Grant has been excused from attending
▲

COUNTY CRICKET
BY JON COUCH
NOTTINGHAMSHIRE director of crick-
et Mick Newell was last night
resigned to his side falling foul to a
cruel twist of fate in the County
Championship title race.
Heavy rain in Manchester again
washed out an entire day’s play of
their crucial final match of the sea-
son against Lancashire, meaning only
28 overs have been possible ahead of
today’s final day.
Newell’s men began the final week
two points clear of Somerset at the
top of the table and nine clear of
Yorkshire in third.
But with Somerset claiming a max-
imum eight bonus points at Durham
and Yorkshire securing five against
Kent at Headingley, it looks increas-
ingly likely that a lack of action will
cost Notts dear.
To be sure of denying Somerset a
Newell’s men would need to claim six
bonus points and win themselves by
contriving a run chase for Lancashire.
“If Lancashire are prepared to
chase a score tomorrow then that dis-
cussion is going to have to take place,”
Newell admitted. “But you’ve got to
keep the integrity of the game to the
extent that you can’t give anything
away.”
Somerset’s eighth bonus point
came after reaching 426 – a lead of
140 – and the Cidermen will feel con-
fident of wrapping up a maiden title
despite Durham rallying to 171-2 at
the close.
Victory for Yorkshire over relega-
tion-threatened Kent looks unlikely,
however, with the Tykes ending the
day of 51-1 – an overall lead of just 10.
But Kent weren’t helped either by a
century from Ian Bell which helped
Warwickshire to a sixth bonus point
as they hit 303 against Hampshire.
Saturday’s Premier League game with
Stoke to observe Yom Kippur.
The Day of Atonement is the most
significant date in the Jewish calendar
and is a strict day of fasting and forbids
followers to work. Defender Tal Ben
Haim is also expected to miss the game.
Grant’s assistant Zeljko Petrovic will
take temporary charge of team affairs.
Mascarenhas banned for 14 days
CRICKET: Hampshire captain Dimitri
Mascarenhas was last night suspended
for 14 days by the England and Wales
Cricket Board following his foul-mouthed
Twitter outburst earlier this month.
The all-rounder, currently out with a
long-term Achilles problem, blasted
national selector Geoff Miller on two
seperate posts on his Twitter page.
He was fined £500 by the ECB, to go
with his £1,000 fine from Hampshire,
and his ban will start at the beginning
James Hildreth’s century took Somerset within sight of the title. Picture: ACTION IMAGES of next season.

THE 129TH VARSITY MATCH SPONSORED BY

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 34 Sport | Football CITYA.M. 16 SEPTEMBER 2010

Results
UEFA CHAMPIONS LEAGUE - GROUP E
Bayern Munich.........(0) 2 Roma.....................................(0) 0
Muller 78
Klose 83 Att: 67,253
Wenger hails captain Cesc
as awesome Arsenal hit six
CFR Cluj-Napoca......(2) 2 Basle.......................................(1) 1
Rada 9 Stocker 45
Traore 12 Att: 16,000
P W D L F A GD Pts
Bayern Munich 1 1 0 0 2 0 2 3
CFR Cluj-Napoca 1 1 0 0 2 1 1 3
Basle 1 0 0 1 1 2 -1 0
Roma 1 0 0 1 0 2 -2 0
GROUP F
MSK Zilina ...................(0) 1 Chelsea ................................(3) 4
Oravec 55 Essien 13

Att: 11,181
Anelka 24, 28
Sturridge 48
ARSENAL 6
Marseille.......................(0) 0 Spartak Moscow..........(0) 1
Att: 54,000 Azpilicueta 81 (og)

Chelsea
P W D L F A GD Pts
1 1 0 0 4 1 3 3
BRAGA 0
Spartak Moscow 1 1 0 0 1 0 1 3
Marseille 1 0 0 1 0 1 -1 0
▲

MSK Zilina 1 0 0 1 1 4 -3 0 CHAMPIONS LEAGUE

GROUP G BY FRANK DALLERES AT EMIRATES STADIUM
AC Milan........................(0) 2 Auxerre...............................(0) 0
Ibrahimovic 66, 69 Att: 74,296 ARSENAL boss Arsene Wenger singled
Real Madrid.................(1) 2 Ajax........................................(0) 0 out Cesc Fabregas for praise after his
Higuain 31, 73 Att: 80,142
P W D L F A GD Pts captain orchestrated a Champions
AC Milan 1 1 0 0 2 0 2 3 League demolition of Braga, scoring
Real Madrid 1 1 0 0 2 0 2 3 twice and setting up two more in a
Ajax 1 0 0 1 0 2 -2 0
Auxerre 1 0 0 1 0 2 -2 0
victory of embarrassing ease.
Substitute Carlos Vela had time to
GROUP H
Arsenal...........................(3) 6 Braga ....................................(0) 0 register a brace of his own, while
Fabregas 9 (pen), 53 Andrei Arshavin and Marouane
Arshavin 30 Chamakh added to the visitors’ humil-
Chamakh 34, Vela 69, 84 Att: 59,333
Shakhtar Donetsk .(0) 1 Partizan Belgrade .......(0) 0 iation as the Gunners racked up pic-
Srna 71 Att: 45,907 turesque goal after picturesque goal.
P W D L F A GD Pts Fabregas launched the drubbing
Arsenal 1 1 0 0 6 0 6 3 with a penalty before adding a header
S Donetsk 1 1 0 0 1 0 1 3
P Belgrade 1 0 0 1 0 1 -1 0 after the break in a commanding per-
Braga 1 0 0 1 0 6 -6 0 formance that dispelled any doubts
NPOWER LEAGUE 1 that his commitment might have Captain Marvel Cesc
MK Dons........................(0) 2 Southamptn.....................(0) 0 been dented by his manager’s refusal Fabregas is congratulated
Balanta 72, Leven 87 Att: 8,133 to let him join Barcelona. by two-goal Carlos Vela.
“Cesc is a fantastic influence and Picture: ACTION IMAGES
TODAY’S DIARY it’s important that he leads this team
Europa League - Group A to winning,” said Wenger. “I believe as
SV Red Bull Salzburg v Man City (6pm) .......................................................... well that the playing alongside him is that, but I never doubted that. He nents might have capitalised. so than when Wilshere capped a ludi-
Group K
Liverpool v Steaua Bucuresti (8.05) .................................................................. a fantastic opportunity for young arrived here at the age of 16 and he The rout began when, in the eighth crous move by backheeling for
Women’s World Cup Qualifying Play-Off Second Leg players to improve. enjoys the way we play. What do you minute, goalkeeper Felipe took Chamakh to finish. An unmarked
Switzerland (0) v England (2) (6pm).................................................................. “I like as well that he gave the ball want more, to be happy?” Chamakh’s legs and Fabregas confi- Fabregas nodded the fourth soon
GOLF to Vela instead of trying alone [for his A fourth straight victory took dently slotted home from the spot. after the interval from an Arshavin
Austrian Open (Diamond Country Club, Vienna, Austria). hat-trick]. That reflects the way we Arsenal’s tally to 16 goals in three The Spaniard’s jink and threaded cross, and the Russian’s through-ball
want to play the game and also the home games, although the value of pass then allowed Arshavin to toe- set up Vela to net a cool finish.
real attitude of a leader; he does what this win was tempered by Braga’s poke the second on the half-hour. Fittingly Fabregas fed the Mexican
SPORTS EDITOR JON COUCH the game wants and is not selfish. ineptitude. The Gunners still looked In truth, the match resembled a to cap a thumping win with a side-
email sport@cityam.com “He loves this club, people doubted vulnerable at times and better oppo- training ground exercise, none more footed finish with five minutes to go.

L
LIVE
IV E B
BARCLAYS
ARCLAYS PREMIER
AT C
AT
PREMIER LEAGUE
LEAGUE F
RAVEN COTTAGE
CRAVEN COTTAGE
FOOTBALL
OOTBALL
It’s Anelka at the
double as Chelsea
take Euro stroll
“We are doing very well. We are
MSK ZILINA 1 in a good moment. We started well
in the Premier League and in the
Champions League – everything is
CHELSEA 4 okay now.”
Essien side-footed the Blues
ahead from Anelka’s centre on 13
minutes before the French striker
▲

CHAMPIONS LEAGUE
BY JON COUCH
Saturday 25th September CARLO ANCELOTTI hailed his ruth-
less Chelsea after Champions
(Kick-Off 3pm) Craven Cottage League rookies MSK Zilina were
given a rude awakening in their
Group F opener in Slovakia.
Tickets available from: Nicolas Anelka scored twice,
either side of strikes from Michael
£35 Adults / £15 Juniors Essien and Daniel Sturridge, as the
Blues began their European cam-
paign with a thumping win.
Buy now @ fulhamfc.com “The first half was fantastic,” said
a delighted boss Carlo Ancelotti
or call 0843 208 1234 (option 1) after seeing his side waltz into a 3-0
Y
himself doubled the lead soon after
from Florent Malouda’s chipped
through ball.
Four minutes later Anelka made
it 3-0 after the returning John Terry
had headed Malouda’s corner onto
the crossbar.
Sturridge made it four three min-
utes into the restart with his first
Champions League goal after coolly
rounding keeper Martin
Dubravaka, and his proud moment
wasn’t to be spoilt by Tomas Oravec
netting a consolation for the hosts.
“I’ve been dreaming of this since I

lead at the break. was a young boy,” Sturridge said.

B D
IT
A E

“We played very well on the “I’m delighted to get off the mark in
IL
IL IT

counter-attack. We had a lot of the Champions League and hopeful-

A IM

chances. It was a fantastic per- ly there’s many more to come.

AV L

formance. The second half was dif- “There’s a lot of world-class play-
ferent. We had a good control of ers in this team. I’m delighted to be
the game. part of things.”
CITYA.M. 16 SEPTEMBER 2010
Bristly Redknapp
may be starting
to feel pressure
ON THE BALL WITH
TREVOR STEVEN
HARRY Redknapp seems to be getting
a bit bristly in his old age. The
Tottenham manager objected to the
notion that his side’s failure to hold
onto a two-goal lead at Werder
Bremen on Tuesday suggested they
had lessons to learn about the
Champions League. That’s silly.
Make no mistake, Spurs will view
the result as an opportunity missed.
Away wins in this competition are
vital because they ease the pressure
to take maximum points at
home and, although Bremen
are a good attacking side, it
&579>5.(&1
was two points lost.
Redknapp’s squad may be
full of internationals but
they are inexperienced
in playing as a team in
the Champions League.
Of course you have to
learn lessons. Even the
best teams slip up some-
times.
Perhaps Redknapp
(right) is starting to feel
Nicolas Anelka fired
Chelsea with two goals in
Slovakia.
Picture: GETTY
Sport | Football 35
It’s easy pickings for Real boss Jose, as
Milan and Bayern also cruise through
Argentinian srtriker Gonzalo Higuain CFR Cluj overcame Basel 2-1 in the
CHAMPIONS put paid to Martin Jol’s Dutch side. other Group E game thanks to early
LEAGUE 2010-11 In the other game in Group G, goals from Ionut Rada and Lacina
BY JON COUCH Zlatan Ibrahimovic scored twice as Traore.
Italian giants AC Milan also came Joining Chelsea on maximum
JOSE MOURINHO got off to a winning through 2-0, at home to French side points in Group F is Spartak Moscow,
start in the opening match of his Auxerre. who sprung a surprise by beating
the pressure. Expectations are very Champions League defence after Likewise, last season’s runners-up Marseille 1-0 on the road with Cesar
high but it looks like being a tough guiding Real Madrid to a comfortable Bayern Munich began with a comfort- Azpilicueta netting an own goal nine
season for Tottenham, who must jug- 2-0 win over Ajax at the Bernabeu. able 2-0 win, this time over Italian minutes from time.
gle a European campaign and a scrap The former Chelsea chief, who won side Roma. The other game in Arsenal’s group
to maintain their top-four Premier the title with Inter last season to add German World Cup stars Thomas saw ex-Rangers striker Darijo Srna
League status. to his success with Porto in 2004, Muller and Miroslav Klose netted in give Shakhtar Donetsk a 1-0 win over
Spurs are not a team you’d put looked on as a goals in each half from the final 12 minutes for Bayern. FK Partisan.
money on to finish in the Champions
League places again this time but
]
Redknapp won’t want to prioritise
 
domestic matters over the
(9
Champions League, so I expect he’ll
5&
look to field his strongest line-up as
(42
often as he possibly he can.
That’s not an accusation you could
7
level at Sir Alex Ferguson, however,
+4
who paid the price for selecting a
> 
weakened Manchester United side
)
against Rangers. They needed some-
&
7* 9:7*
one to produce some magic, but with
Paul Scholes, Dimitar Berbatov and
Ryan Giggs all left out they failed.
Ferguson won’t be reaching for the
panic button yet but there are a lot of
issues he needs to address: a lack of
form and fluidity, defensive errors,
*3
and a reliance on Rooney’s goals.
;
&)
United urgently need to shake
off the malaise that has seen
them squander winning positions
at Fulham and Everton and now
draw with Rangers, starting by beat-
ing Liverpool on
Sunday.
In the meantime,
Chelsea will be look-

ing to capitalise on

their main rivals’ slump
by opening up a big gap.
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tonight’s opening Europa League
match at Red Bull Salzburg. FUEL CONSUMPTION FIGURES FOR THE PATRIOT RANGE IN MPG (L/100KM): URBAN 24.4 (11.6) – 35.8 (7.9),
Emmanuel Adebayor has not recov- EXTRA URBAN 37.2 (7.6) – 47.9 (5.9), COMBINED 31.0 (9.1) – 42.8 (6.6). CO2 EMISSIONS IN G/KM 172 – 210.
ered from the dead leg that kept him
out at the weekend, meaning Mancini *Vehicle shown is a Patriot 2.4 litre Sport Petrol at £14,995 OTR. Model features optional metallic paint at an additional £450 including VAT. On the road price includes
Vehicle Excise Duty (VED), first registration fee and VAT. Prices and specifications correct at time of going to press (09/10). **Promotion available on new Jeep Patriot
has only Carlos Tevez and Jo at his dis- models registered between 1st July and 30th September 2010 at participating dealers. Further charges may be made subject to the condition of the vehicle, if the vehicle
posal. Centre-back Joleon Lescott is is returned at the end of the finance agreement. Finance subject to status. Guarantees/Indemnities may be required. Chrysler Group Financial Services, PO BOX 108,
also absent but full-back Wayne Bridge Leeds LS27 0WU. Jeep is a registered trademark of Chrysler Group LLC.
is in line for his first start of the season
after shaking off an ankle injury.
 Cell,
cell,
cell.

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