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BUSINESS WITH PERSONALITY
Issue 1,266 Thursday 18 November 2010 www.cityam.com FREE

BAILOUT LOOMS FOR

TROUBLED IRELAND
EU ECONOMY
▲

Ireland’s 12.5 per cent rate of taxa-

BY STEVE DINNEEN AND JULIET SAMUEL tion has allowed it to compete as a
major business hub. Firms including
A BAILOUT for troubled Ireland Google and Microsoft have their
drew closer last night as an interna- European domicile there and yester-
tional taskforce prepared for crunch day Greencore and Northern Foods
negotiations over the country’s eco- announced they plan to remain in
nomic future. Ireland for tax purposes after their
Representatives from the planned merger goes through. Any
International Monetary Fund, the hike in the tax rate could hurt
European Central Bank and the Ireland as it begins its slow recovery.
European Commission – the same The Irish finance ministry said it
team that descended on Greece – will not bow to Austrian pressure,
will begin their work in Dublin this claiming the EU’s Lisbon Treaty pro-
morning. tects the rate.
They will probe growing concerns George Osborne agreed “It’s up to
that Irish bank deposits are dwin- countries to decide their own tax
dling as faith in the financial system policies”
comes close to collapse. The UK Treasury was unwilling to
Irish Life & Permanent revealed comment on speculation the UK
yesterday corporations withdrew a may offer Ireland direct financial
staggering €600m in a matter of aid in addition to – or even in place
weeks at the end of the summer – of – the £6bn of European funds.
more than 11 per cent of total Osborne said: “Britain stands
deposits. This echoes a similar trend ready to support Ireland on the steps
at Bank of Ireland and, along with it needs to take to bring about that
bigger than expected losses, has led stability. I won’t speculate on what
to fears banks could struggle to fund kind of assistance we might provide.
their daily operations. There are options, and we are look-
Irish finance minister Brian ing at all of those.”
Lenihan attempted to play down the The UK last offered a direct coun-
possibility of liquidity problems, say- try to country loan to Brazil in 1998.
ing: “The European Central Bank However, last night Eurosceptic
stands fully behind the Irish bank- Tories had already broken ranks.
ing system. There are no funding dif- Tory MP Douglas Carswell told City
ficulties in the Irish banking A.M.: “Osborne talks about national
system.” interest. The worst possible national
But he admitted the banking sec- Ireland’s embattled finance minister Brian Lenihan said “there are no funding difficulties in the Irish banking system” interest would be for the British tax-
tor needed help, adding: “What may payer to spend billions of pounds
be required may not in fact be an Prime Minister Brian Cowen said: adverse to external help, despite throughout the area. That includes from an EU fund set up to deal with
actual transfer of money now but “There has been no question of the Ireland’s apparent reluctance to Ireland. We share our sovereignty natural disasters in order to prop up
demonstration of how much money government negotiating for a accept a handout. It yesterday issued with Europe in relation to currency.” the euro and delay Ireland’s misery.”
can be made available if further dif- bailout.” a statement saying: “We’re not on Austria heaped pressure on the Markets yesterday closed slightly
ficulties materialise.” However, sceptics argue there is our own. We’re part of the beleaguered nation yesterday when higher as hopes of a bailout for
The Irish Treasury is still attempt- little distinction following the state Eurozone. And the finance minis- it suggested Ireland could be made Ireland boosted investor confidence.
ing to deflect talk of a state bailout, guarantee of the banks undertaken ters of the Eurozone are determined to hike its low rate of corporation The FTSE 100 jumped 10.66 points to
attempting to contain the crisis in 2008. to take whatever action is needed to tax as punishment for its financial 5,692.56. ALLISTER HEATH: P2,
within the banking system. Irish The Irish Treasury insists it is not safeguard financial stability failures. NEWS: P20, GREENCORE: P6-P7

FTSE 100 ▲ 5692.56 +10.66 DOW ▼ 11,007.88 -15.62 NASDAQ ▲ 2,476.01 +6.17 £/$ 1.59 unc £/¤ ▼ 1.17 -0.01 ¤/$ ▲ 1.36 +0.01 Certified Distribution
04/10/10 - 31/10/10 is 110,406

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 2 News CITYA.M. 18 NOVEMBER 2010

Ireland’s crisis won’t destroy the UK NEWS | IN BRIEF

EDITOR’S LETTER
ALLISTER HEATH
ONCE again, UK taxpayers are about to
be asked to bail out a failed organisa-
tion, in this case the Irish state. This is
a tragedy, because Ireland has actually
sorted out its day to day public
finances but stupidly decided to guar-
antee all of the liabilities of all of its
banks, something it couldn’t possible
afford. Not for the first time, we are
paying the price for politicians’ failure
to work out a proper resolution mech-
anism to allow financial institutions
to fail without smashing the rest of
the economy. Britain should not take
part in this bailout; it is a problem for
the Eurozone, not Westminster.
Brussels and Frankfurt helped create
this mess; they must now sort it out.
Contrary to what many believe, the
direct fallout from the Irish situation
for the UK economy won’t be devastat-
ing. A bigger problem would be if
Ireland were to leave the euro – while
that would be good for all concerned
in the long run, as membership of the
single currency is one major reason
for Eire’s woes, it would trigger mas-
sive losses in Irish euro-denominated
assets in the short term. The real prob-
lem for the UK would be if other
Eurozone countries hit the rocks,
especially large economies such as
Italy and Spain. This could trigger a
true catastrophe.
But any immediate and localised
trouble in Ireland ought to be contain-
able. There are fours ways in which we
would suffer. The euro may fall fur-
ther, hitting UK exports and the ster-
ling value of the turnover and profits
of UK owned businesses in Europe. As
Capital Economics points out, a
European bailout to which Britain
would be forced to contribute, or a
bilateral bailout, would mean that
gross UK public debt would rise and
further risk would be absorbed onto
the public sector balance sheet. Yet
even if the UK government con-
tributed a quarter of an €80bn bail-
out, that would only add 2 per cent to
UK gross public sector debt. There
would also be some return on any
loans. The net cost might be half a per
cent of GDP (and could even conceiv-
ably turn a profit, though I very much
doubt that).
British banks may suffer further
losses on exposures to Ireland’s bank-
ing sector, businesses and households,
either because of defaults or through
falls in asset values. UK banks’ have
cut their exposure to Ireland but it
remains at 6 per cent of UK GDP,
much larger than the exposure to
other peripheral Eurozone economies.
Of course, even in the event of a catas-
trophe, only perhaps one-sixth of the
exposure would be lost forever. So the
UK banks ought to be able to cope but
may need to raise additional capital
under any worse case scenario which
saw Ireland go bust, its main banks
implode and expulsion from the
Eurozone. Last but not least, 6 per cent
of UK exports go to Ireland. These have
already slumped in recent years, so
any further effect will be muted. It
may still inflict some pain, however,
and slow the recovery.
There are many lessons to be learnt
from all of this. The EU’s treaties are
not worth the paper they are written
on, especially the nonsense about fis-
cal sustainability; the euro is a giant
with feet of clay; monetary union will
either lead to fiscal centralisation and
destroy democracy in small countries
or break up completely. Another
absurdity: as part of the moves to force
banks all over the world to hold more
liquid assets, they have all been told to
buy vast amounts of supposedly safe
government bonds. This wasn’t exact-
ly the cleverest strategy. What a mess.
allister.heath@cityam.com
Vale SA plans spending spree
Vale SA plans to spend more than
$10bn over the next five years to
expand its operations in Canada, an
investment that may soothe critics of
the Brazilian mining giant's track record
in the country. The company said yester-
day that the large-scale investments
have already started and will ramp up
during 2011. Vale bought the bulk of its
Canadian operations through its
$18.8bn acquisition of Inco in 2007.
SocGen man makes confession
A former Societe Generale trader
admitted he took home printouts of
the French bank's speed-trading code,
admitted sharing it with a prospective
employer and that it was wrong, an
odd twist in the criminal trial over
trade secrets theft. The trial of
Samarth Agrawal, a citizen of India, is
expected to go to the jury in US
District Court in New York today.
"Frankly, I'm puzzled by the present
situation," Judge Jed Rakoff said. "The
defendant has admitted all essential
elements of at least the first count of
the indictment and probably the sec-
ond count."

Goldman hires
GOLDMAN’S NEW PARTNERS
Chuck Adams Samuel W Finkelstein Matthew F Mallgrave Stephen B. Scobie
7th Floor, Centurion House,
Nick S Advani Matthew R Gibson Alain Marcus John C. Shaffer
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334 William D Anderson Michele Gill Robert A. Mass Konstantin A.

110 partners
Email: news@cityam.com www.cityam.com Scott B Barringer Michael J Grimaldi Matthew B. McClure Shakhnovich
Gareth W Bater Dylan S Halterlein Patrick S McClymont Daniel M. Shefter
Editorial Tracey E Benford Elizabeth M Hammack Dermot W McDonogh Michael L. Simpson
Editor Allister Heath
Deputy Editor David Hellier Avanish R Bhavsar Dane E Holmes Richard P McNeil Mark R. Sorrell
News Editor Ben Griffiths V Bunty Bohra Ning Hong Avinash Mehrotra J. Richard Suth
Night Editor Katie Hope Stefan R Bollinger Shin Horle Jonathan M Meltzer Jasper Tans
Associate Editor David Crow Robert Boroujerdi Stephanie Hui Bruce H Mendelsohn Patrick Tassin de
BANKING South America. A further 29 per cent
▲

Business Features Editor Marc Sidwell Alison L Bott Eric S Jordan Peeyush Misra Nonneville
Lifestyle Editor Zoe Strimpel BY STEVE DINNEEN are from Europe.
Goldman chief executive Lloyd Sally A Boyle Vijay M Karnani Bryan P Mix Megan M. Taylor
Pictures Alex Ridley
GOLDMAN Sachs yesterday released Blankfein said: “These appointments Christoph Brand Christopher M Keogh Atosa Moini Teresa Teague
Commercial the names of 110 of its staff who have recognize some of the firm’s most Torrey J Browder Peter Kimpel Ricardo Mora Pawan Tewari
Sales Director Jeremy Slattery been promoted to partner. valued senior professionals and Philippe L Camu Kelvin Koh Ezra V. Nahum Klaus B. Toft
Commercial Director Harry Owen Less than 500 of Goldman’s total acknowledge their leadership and
Donald J Casturo Adam M Korn Nigel M. O’Sullivan Kenro Tsutsumi
Head of Distribution Nick Owen workforce of 35,000 are honoured contribution to the firm’s culture of
with the title. excellence. Chia-Lin Chang David Kostin Nirubhan Pathmanabhan Richard Tufft
The number promoted is around “These decisions are extremely dif- Steven N Cho Joerg H. Kukies Jonathan M. Penkin Toshihiko Umetani
Distribution helpline 10 per cent higher than the average ficult and we would like to acknowl-
If you have any comments about the distribution David T Y Chou Andre Laport Ribeiro Michelle H. Pinggera Jonathan R. Vanica
of City A.M. Please ring 0207 015 1230, or email and the highest since 2006. Just 94 edge the hard work of those who Thalia Chryssikou Geoffrey Lee Dhruv Piplani Philip J. Venables
distribution@cityam.com employees were promoted to partner were not selected. We are confident
Colin Coleman Laurent Lellouche Dina H. Powell Simone Verri
in 2008, the last intake. that many of them will be selected in
Editorial Statement The total number of partners is the future.” Kenneth W Coquillette Eugene H Leouzon Sumit Rajpal Daniel Wainstein
This newspaper adheres to the system of believed to have grown, with only 60 Cyril Cottu Wayne M Leslie Ganesh Ramani Kevin A. Walker
self-regulation overseen by the Press Complaints leaving the bank since the last count, Goldman boss Lloyd Massimo Della Ragione John R. Levene James H. Reynolds Robert P. Wall
Commission. The PCC takes complaints about the although Goldman closely guards the
editorial content of publications under the Editor’s Blankfein welcomed the Michele I Docharty Leland Lim Stuart Riley David D. Wildermuth
exact figure.
Code of Practice, a copy of which can be found at
www.pcc.org.uk Around 26 per cent, a higher pro- new crop of partners as David P Eisman Lindsay P LoBue Karl J. Robijns Chang-Po Yang

Printed by Newsfax International,

portion than usual, are based in Asia, part of the bank’s cul- Harry Eliades David B Ludwig Craig Russell Alan Zhang
Beam Reach 5 Business Park, with only 45 per cent of the partner- ture of excellence. Christopher Eoyang Raghav Maliah Luke A. Sarsfield III Xing Zhang
Marsh Way, Rainham, Essex, RM13 8RS ships being awarded in North and

WHAT THE OTHER PAPERS SAY THIS MORNING

AGARWAL’S PROJECT QUASHED
Anil Agarwal, the Indian billionaire
who controls Vedanta, the UK-listed
mining group, has suffered a setback
to his philanthropic ambitions, hard
on the heels of legal problems this
year involving some of the group’s
Indian operations. Mr Agarwal’s
plans to build a $3.3bn (£2.1bn) uni-
versity in a coastal area of impover-
ished Orissa, starting with a $1bn
endowment from his personal for-
tune, have fallen foul of the law –
and a powerful Hindu deity, Lord
Jagannath.
GOOGLE AND HACHETTE IN DEAL
Google and Hachette Livre have struck
a groundbreaking deal allowing the
world’s second largest retail book pub-
lisher to control the scanning and elec-
tronic sale of its out-of-print French
language titles. The agreement, cover-
ing about 50,000 works
MINTS CASH IN ON SILVER COINS
Silver coins are selling at a record
pace as investors – especially in the
US – seek to limit their exposure to
the dollar. The world’s top mints have
seen their silver coin sales jump to
record or near-record levels, and they
and coin dealers are working over-
time to meet the surge in demand
from investors.
3I CHIEF WARNS DEALS ARE EXPENSIVE
Private equity groups will face
“tough questions” from investors
when many of them seek to raise
fresh funds in the next year or two,
according to Michael Queen, chief
executive of 3i, the UK’s biggest list-
ed private equity group by market
capitalisation. Warning that an over-
hang of capital left from the last
buy-out bubble was causing private
equity groups to pay “extraordinari-
ly high” prices for deals, Mr Queen
said the excess of dry powder in the
industry would take 12-18 months to
clear.
AMERICAN ACQUISITION REPRESENTS
LEAP FOR IMAGINATION
Imagination Technologies has
bought its American rival HelloSoft
in its first acquisition for a decade.
The $47 million deal puts the compa-
ny that provides graphics processors
for the iPad among the select few
British technology companies that
have reversed the trend of selling out
to larger US rivals.
HEDGE FUND DEMANDS €200M FROM
WALLENBERG BANK
A Swedish investment bank is being
sued for about €200 million by a
hedge fund that claims the bank
slashed the value of its portfolio.
Skandinaviska Enskilda Banken,
which is controlled by the
Wallenberg family, faces action from
Euroption, a British Virgin Islands-
based hedge fund with offices in the
City of London.
BRITISH BANKS HAVE £140 BILLION
EXPOSURE TO IRELAND'S ECONOMIC
CRISIS
George Osborne has pledged to help
Ireland after new figures showed
British banks have a £140 billion expo-
sure to the beleaguered country. The
chancellor attended crisis talks in
Brussels to discuss the growing debt
crisis in Ireland with the country
under intense international pressure
to accept an international bailout.
NEW LEAK EXPOSES MOD FURY AT
DEFENCE CUTBACKS
David Cameron's defence review has
demoralised the Armed Forces,
strained relations with allies and
ignored significant military advice, a
leaked Ministry of Defence document
has disclosed. It was rushed and its
handling “badly damaged the confi-
dence and morale of our personnel,”
the paper says.
JULIUS BAER SEES PROGRESS IN
RAISING CLIENTS' RISK APPETITE
Swiss private bank Julius Baer Group
AG, is succeeding in its efforts to raise
the risk appetite of its wealthy private
clients who sheltered their money in
low-risk cash investments during the
financial crisis, tempting them
instead into slightly riskier products
such as corporate bonds and foreign
exchange trading, its head of invest-
ment solutions said in an interview.
VERIZON RETHINKS PRICING
Top executives at Verizon
Communications Inc. are exploring
ways to charge consumers based on
the speed of their wireless data con-
nection in addition to the amount of
data they use. Chief executive Ivan
Seidenberg said that such a pricing
change would be made possible by
the carrier’s migration to a fourth-
generation, OR 4G.
CITYA.M. 18 NOVEMBER 2010 News 3

Jain not a shoe-in at Deutsche

Not picking an investment banker being passed over for the top job.
▲

BANKING
BY STEVE DINNEEN
SENIOR Deutsche Bank executives
and members of the supervisory
board – which will select the next
chief executive -- have signaled it is
not a foregone conclusion that Anshu
Jain will get the job.
“The captain of the ship needs to
give a direction and detect icebergs,
but he doesn’t have to row the boat,”
a member of the supervisory board
said.
The bank’s chief risk officer Hugo
Baenziger has emerged as a strong
candidate.
would run counter to a trend at other
European banks involved in invest-
ment banking.
Barclays recently handed invest-
ment banking chief Bob Diamond the
top job after initially passing him
over in favour of John Varley.
And Credit Suisse promoted US
investment banking chief Brady
Dougan, rather than Swiss wealth
management chief Walter Berchtold,
to run the Swiss bank.
Before joining Deutsche Bank, Josef
Ackermann himself walked out of
SKA, a predecessor of Credit Suisse
where he was a board member, after
Ackermann later became invest-
ment banking head at Deutsche
before becoming chief executive in
2002.
But senior bankers say one of
Ackermann’s most important
achievements was to be “neutral,” a
quality needed to unite competing
factions within the bank.
That may count against Jain’s
candidacy given his investment
banking background.
Unlike Jain, Baenziger speaks flu-
ent German, a fact that will go down
well in Berlin and in German banking
circles. (l-r) Investment banking head Anshu Jain and chief risk officer Hugo Baenziger Picture: GETTY

FSA to keep
its financial “BE SIMPLER THAN
WHAT COULD

crime powers
FSA when it is disbanded as part of
SPREADS?
”
▲

POLITICS
BY DAVID CROW
GEORGE Osborne has performed a U-
turn over a landmark policy, which
would have seen the FSA stripped of
its power to prosecute financial crime
and its oversight of companies listing
on the stock exchange.
The chancellor had previously said
he would give the FSA’s prosecution
powers to a new Economic Crime
Agency (ECA), which is being set up to
take on the responsibilities of the
Serious Fraud Office and the Office of
Fair Trading.
But in a major coup for Hector
Sants, the chief executive of the FSA,
the City watchdog will hang on to the
powers for the next two years.
They will then be handed to a new
Consumer Protection and Markets
Agency (CPMA), which will replace the
Xavier Rolet has cam-
paigned to keep the
oversight of new listing
companies and ongoing
trading with one body
Osborne’s overhaul of financial regu-
lation.
“After much consideration, we have
decided that for the moment the
FSA’s powers of prosecution will lie
with the new CPMA rather than the
new Economic Crime Agency,” said a
Treasury spokesperson.
NOTHING.
Treasury aides insisted the chancel-
lor had not performed a U-turn, but
the policy was a key plank of
Osborne’s pre-election pledge to scrap
tripartite regulation.
Margaret Cole, who was director of
enforcement at the FSA when
Osborne criticised its record, is likely
to continue in that role, and to take
up a similar one when the CPMA is
created.
The UK Listing Authority, which
oversees both the new listing of com-
panies and the ongoing trading of
existing securities, will also fall under
the CPMA.
This is a major coup for the City,
with LSE boss Xavier Rolet pushing
for regulatory powers to lie with one
body rather than be split with the
Bank of England and the Financial
Reporting Council (FRC).

Barclays Private Equity will buy

division in future profit exchange
boss. He will also replace Gonzague
▲

BANKING de Blignières as head of its Paris

BY STEVE DINNEEN
MANAGEMENT at Barclays Private
Equity (BPE) will buy out the banking
giant’s private equity division in a
deal involving no up-front cash.
Ownership will be transferred in
exchange for a share of BPE’s future
earnings over a period of several
years, according to the Financial
Times. Barclays and BPE were both
unavailable for comment last night.
It is understood BPE will also shake
up its management structure by
appointing Guillaume Jacqueau, a
managing director in Paris, as its new
office.
This represents a major shift from
the “three-pronged” leadership struc-
ture previously in place, with
Gonzague de Blignières, Peter
Hammermann and Paul Goodson in
charge. Owen Clarke, a managing
director in London, will be named
chief investment officer.
The BPE acquisition follows a simi-
lar proposal earlier this week by
Lloyds Banking Group to separate its
private equity arm from the group.
Bank of America Merrill Lynch and
Citigroup have already completed
similar deals.
 4 News
GM in record
float as raises
over $23bn
▲
AUTOMOTIVE
BY HARRY BANKS
GENERAL MOTORS (GM) pulled off
the biggest initial public offering in
US history yesterday, raising $23.1bn
after pricing shares at the top of the
proposed range in response to huge
investor demand.
GM sold 478m common shares at
$33 each, raising $15.77bn, as well as
$4.35bn in preferred shares, more
than the initially planned $4bn.
Including an option that would
allow underwriters to sell more
shares, expected to be exercised in
coming days, GM looks set to raise
$23.1bn – the biggest initial public
offering ever.
The strong response to the stock
sale reflects growing investor confi-
dence that GM is moving beyond its
unpopular, taxpayer-funded bank-
ruptcy in June 2009 with sharply
lower costs and higher profit poten-
tial.
The US government’s stake in GM
will drop to about 33 per cent from
61 per cent if all available shares are
sold.
The stock will begin trading today
on the New York and Toronto stock
exchanges.
The success of the IPO is good
news for the Obama administration,
which faced criticism for bailing out
GM, and will help the automaker
shed its “Government Motors” label.
Auto industry executives and ana-
lysts said the reversal in Wall Street
sentiment toward GM pointed to
renewed confidence in an industry
that was hit hard by the credit crisis
of 2008.
That is a positive sign for a range
of auto-related companies, including
Chrysler, that are looking to tap the
credit and equity markets in coming
months, analysts said.
The stock sale represents a big step
toward taxpayers recouping the
embattled US government’s $50bn
rescue of the 102-year-old company,
which had fallen from blue-chip sta-
tus to bailout basket case in recent
years.
CITYA.M. 18 NOVEMBER 2010
Russia approves
£20bn plan to
privatise assets
FINANCIAL MARKETS
▲
RUSSIAN Prime Minister Vladimir
Putin yesterday approved a plan to sell
1 trillion roubles (£20bn) in state assets
over the next three years to help plug a
gap in the budget and lure investors.
Russia’s leaders need cash as they
struggle to get the country out of its
worst recession in 15 years and ratchet
up growth ahead of the 2012 presiden-
tial election, in which Putin, a former
president, has hinted he may stand.
Russia ran a budget deficit of 2.1 per
cent in the first 10 months of the year,
the finance ministry said last Friday.
Analysts polled by Reuters have fore-
cast a 4.4 percent deficit for 2010 while
the government expects 5.4 percent.
Economy minister Elvira Nabiullina
said a cabinet meeting chaired by
Prime Minister Putin approved the pri-
vatisation plan – which includes stakes
in the country’s two biggest banks,
main oil producer and railways
monopoly.
The sale will be Russia’s biggest pri-
vatisation drive since the rigged sell-off
of former Soviet Union assets in the
early 1990s, which saw multi-billion
dollar companies and assets fall into
the hands of a small number of indi-
viduals. The first asset to be sold is
almost certain to be a 10 per cent stake
in lender VTB to US private equity
The goverment will sell its 10pc stake in VTB, led by Andrei Kostin (above) Picture: GETTY group TPG for at least $3bn.
CITYA.M. 18 NOVEMBER 2010 News 5

Obama closes in on
NEWS Corp’s
European boss
James Murdoch has
called on regula-
tors to back his

Altman as adviser
firm’s £7.8bn bid
for BSkyB or risk
losing its invest-
ment in the “world
leader” digital TV
operation.

centre because he is closely associated

▲
US ECONOMY
Picture: BY HARRY BANKS
Micha Theiner
/City A.M. INVESTMENT banker Roger Altman is
the top candidate to replace National
Economic Council director Lawrence
Summer as Obama’s most senior eco-
nomic adviser, it emerged yesterday.
Altman, a former Treasury official,
met with Obama at the White House
Tuesday.
Altman could signal a move to the
with moderate economic policies of
the Clinton administration.
He served two stints at the Treasury
Department, first in 1977-81 as assis-
tant secretary in the administration
of President Jimmy Carter, and sec-
ond in 1993-94 as deputy secretary
under President Bill Clinton.
Summers’ replacement will play an
important role in helping Obama
find new ways to boost the economy.

News Corp Get on your bike on your

warns Cable City Break to Holland

over Sky deal

which time the market value of Sky is
▲

MEDIA
BY STEVE DINNEEN
NEWS Corp’s European boss James
Murdoch has called on regulators to
back his firm’s £7.8bn bid for BSkyB
or risk losing its investment in the
“world leader” digital TV operation.
Business secretary Vince Cable has
asked media regulator Ofcom to
investigate whether the takeover
would harm “media plurality”. The
European Union could also launch a
full competition probe.
Murdoch, who is also chairman of
Sky but has agreed to remain absent
from the bid, said: “While we do not
think the grounds for a public inter-
est or a plurality intervention are very
strong, I do think that governments
need to make some choices.”
He added: “From a policy perspec-
tive, the government needs to assess
the benefits of having a digital TV
business that is a world leader cen-
tred in the UK marketplace, with all
of the things that it brings, versus
potentially jeopardising an £8bn
investment in the UK with a pro-
longed kind of plurality process.”
The approval processes could take
until the middle of next year, during
likely to grow as the UK’s leading pay-
TV operator reaps the benefits of past
investments.
News Corp, whose chief executive
is James’s father Rupert, said in June
it wanted to buy the 61 per cent of
Sky it does not already own.
The two parties failed to agree on a
price and have been seeking regulato-
ry approval before further talks.
Commentators have suggested that
News Corp could dispose of the loss-
making Sky News TV channel to
appease regulators.
But Murdoch said the possibility of
making disposals to secure approval
for the proposed deal had not been
discussed. He said: “We are at a very
early stage in this process, so it is dra-
matically premature to be comment-
ing on theories that have not even
surfaced yet.”
Sky’s independent directors have
said they would be prepared to sup-
port a bid of above 800p a share from
News Corp, which has offered 700p
per share, or a total of £7.8bn.
Sky chief executive Jeremy Darroch
said he expects the firm’s profit mar-
gins to increase in coming months.
THE CAPITALIST: P10

London to
Tube boss vows to fight unions in
a bid to modernise the network Amsterdam
the move “dangerous and unneces-
from
▲

TRANSPORT

TUBE boss Mike Brown vowed not to
back down in his long-running dis-
pute with unions over his plans to cut
800 ticket office jobs.
“I want staff to be more flexible, I
make no apology for that,” said the
London Underground managing
director. “We will not run a service
that is stuck in the 1960s. There is no
alternative to modernisation.”
Brown faces his fourth strike on 29
November in several weeks over his
plans to cut the ticket office jobs.
The RMT and the Transport and
Salaried Staffs’ Association say it will
leave stations undermanned and call
£
29 .99
sary.”
But Brown, who is overseeing the
upgrade of the Tube since the col-
lapse of the £29bn public private part- single
nership in the summer, says the issue inc. taxes
is about modernisation rather than
safety.
Brown said: “We are willing to lis-
ten to safety concerns. But the unions
have not put a genuine safety issue on
the table. Unions need to wake up to
the reality of where we are right
now.”
Both sides are locked in talks, but We fly from Gatwick, Luton and Stansted. Price correct as at 9 November 2010. Available to book now for travel
have so far made little progress. between 9 November 2010 and 26 March 2011. Variable charges for hold baggage apply and some payment methods
Unions have pledged not to strike
over Christmas. INTERVIEW: P26 attract a handling fee. See website for details.
 6 Focus on Greencore and Northern Foods merger
ADVISERS
GREENCORE
THE Irish food group has hired a veri-
table army of advisers to lend a hand
with the merger.
Barclays Capital is acting as finan-
cial adviser, joint broker and joint spon-
sor, with Mark Todd and Jon
Bathard-Smith heading the team.
Yesterday’s announcement was the
first public glimpse of Todd since he
joined from Citigroup in July 2009. The
Queens College, Cambridge graduate
has worked with Imperial Tobacco dur-
ing its acquisition of Altadis, Tata
ADVISERS
NORTHERN FOODS
LEEDS-based Northern Foods has
taken on UBS to act as financial advis-
er and broker, with Herbert Smith pro-
viding legal backing.
UBS has looked after Northern for
more than eight years, with head of
investment banking Hew Glyn Davies
taking the lead. Davies also advises
Sainsbury’s, construction firm CRH and
Bank of Ireland, which completed a
€1.7bn rights issue in June.
Craig Calvert acted as broker,
adding to a list of clients that includes
Motors as it bought Jaguar, as well as
buying and later selling Somerfield
during his ten years at Citi.
Joint broker Investec has worked
with Greencore for a number of years,
with head of investment banking David
Currie still heavily involved. Leading on
this occasion is Chris Baird, who joined
from Dresdner Kleinwort in 2009.
IBI Corporate Finance and
Goodbody Stockbrokers, both based in
Ireland, are acting as joint sponsor and
joint broker respectively.
Magic circle firm Slaughter & May
is advising on the legal side, with part-
ners John Panichola and Jonathan
Marks leading a six-strong team.
Panichola’s recent work includes
advising Ocado on its initial public
offering, while Marks aided
GlaxoSmithKline’s £900m pensions
buy-in with Prudential.
grocer Ocado and trader IG Group.
Hebert Smith partners Gillian
Fairfield and Gareth Roberts provided
legal advice. Fairfield specialises in cor-
porate finance, with a specialism in
mergers and takeovers.
She recently advised Rothschild dur-
ing Centrica’s hostile takevoer, and
Arriva when Deutsche Bahn offered a
£1.6bn buy-out.
Gareth Roberts has worked with
BAA during its £15.6bn takeover by
Spanish group Ferrovial and when the
firm established a £800m property
holding fund.
The corporate partner has also
given advice to Virgin Mobile on its
£1.17bn takeover by NTL, AOL Time
Warner during its attempts to poach
EMI and brewer Foster’s Group as it
sold its beer brand to Scottish &
Newcastle.
Northern and
Greencore
agree merger
▲
CONSUMER
BY MARION DAKERS
FOOD retailers Greencore and
Northern Foods revealed plans to
merge yesterday, in a deal that will pro-
duce one of the biggest chilled food
players in the UK.
The firms, responsible for
Goodfella’s pizzas, Fox’s biscuits and
the Weight Watchers range, will be
rebranded Essenta once the proposed
tie-up is complete in March 2011.
Management said yesterday the new
business, structured as a merger of
equals, will float as part of the FTSE
250 index, meaning Greencore will de-
list from the Dublin exchange to meet
London trading requirements. The
company, which will have a combined
revenue of £1.7bn, will be tax-domi-
ciled in Ireland with an operational
base in Yorkshire.
Under the terms of the deal,
Northern Foods shareholders will
receive 0.4479 of a new Greencore
share for each Northern Foods share
held.
CITYA.M. 18 NOVEMBER 2010
NORTHERN
FOODS
“We are creating a food business of
scale, with a balanced portfolio of prod-
ucts and customers that don’t overlap,”
said new financial officer Simon
Herrick, who joins from Northern. “It
gives us fantastic market conditions.
The debt funding that is available to us
is frankly embarrassing, although the
company will be focused on adapting
to the merger for the next year.”
The deal needs approval from share-
holders on both sides. Around 30 per
cent of Greencore investors and 12 per
cent at Northern, including GAM
International and Odey Asset
Management, have backed the merger.
Shares in both firms soared yester-
day leading to speculation of a counter-
bid. “Both companies are now in play,”
Clive Black from Shore Capital said.
Greencore’s chief exec
Patrick Coveney will
take over as boss of
the newly-formed
Essenta
CITYA.M. 18 NOVEMBER 2010 Focus on Greencore and Northern Foods merger 7

GREENCORE
Retailers may have to eat own margins
THE chilled convenience food mar-
ket is ripe for consolidation. In
recent years, the major players have
lacked the scale needed to secure a
decent return from powerful super-
market retailers. Investment has fall-
en, taking its toll on the quality of
products.
For that reason, the marriage of
the two leading chilled players in
the UK market makes perfect sense.
If the almost nil premium merger
goes ahead, the rest of the com-
peition will pale in comparison.
Icelandic Bakkavor has struggled
since the island’s banking woes,
while RF Brookes, the chilled unit of
Premier Foods, is looking tired.
The pair expect to make some
£40m in cost savings, 90 per cent of
which will be achieved in the first
two years. Crucially, these synergies
are not based on a predicted surge in
revenues, which might never mate-
rialise; instead, Essenta (as the new
company will be known) will save
£15m by cutting overheads; £20m
on more efficient procurement; and
£5m by moving Northern Foods’ tax
domicile to Ireland (a rare piece of
good news for that emerald isle).
However, the main advantage is
the extra clout that Northern Foods
and Greencore can expect in the
future. The proposed merger will
create a clear number one player in
private label ready meals, coupled
with a handful of successful brands.
With annualised sales of around
£1.7bn, it will be a force to reckon
with: supermarkets might have to
eat into their own margins instead
of their suppliers’.
Shareholders should support the
merger. Northern and Greencore
would have a less certain future if
they went it alone.
BOTTOMLINE
Analysis by David Crow

KEY STATISTICS FOR THE

COMBINED COMPANY
Combined debt
£329m market cap (based on of around
Tuesday's closing price)
£1.7bn annual revenue
£66m annual pre-tax profit
£40m of cost synergies
17,000 employees
£365m Stop dreaming
about a C-Class.
Barden left out of
Essenta’s top team Start driving one.
M&A For more information on our current
▲

the business during the interim peri-

BY MARION DAKERS
THE CREATION of Essenta has forced
Northern Foods chief executive Stefan
Barden out of the firm, after the chair-
men of the two firms omitted him
from the rejigged executive team.
The chairmen of Northern and
Greencore, old friends Anthony
Hobson and Ned Sullivan, thrashed
out the make-up of the combined
board in private meetings over the
last three months.
Hobson will become chairman of
the enlarged group, with Sullivan as
his deputy.
Greencore’s chief executive Patrick
Coveney was chosen to head the new
company, leaving Northern’s chief
executive out of the final line-up.
A spokesperson for Northern Foods
said the company would make an
announcement about Barden’s
future in due course.
A source close to Barden said:
“Stefan has given his full support to
the merger. He is still working with
od, helping to integrate the business-
es, but after this he will move offers or to book a test drive visit
elsewhere.
“He was fully in the loop during
the negotiations but the two chair-
mercedes-benz.co.uk/offers
men sat down and discussed the
final line-up for the new board
between themselves.”
Northern’s Simon Herrick was
appointed group finance director,
after his Greencore counterpart
Geoff Doherty decided to step down.
“Putting the new board together
was interesting,” Herrick told City
A.M.. “My role was relatively easy, but
the other roles were a bit trickier. But
the chairmen of the two companies
sorted the rest of the board.”
The chairmen of
Greencore and
Northern decided not
to give Stefan Barden
a place on the board

ANALYSIS l Northern Foods ANALYSIS l Greencore 1.35

56 p 1.4 €
17 Nov
1.35

52 56.50 1.3
17 Nov
1.25
1.2
48
1.15
1.1
44 1.05

23 Aug 13 Sep 1 Oct 24 Oct 10 Nov 23 Aug 13 Sep 1 oct 21 Oct 10 Nov
CITYA.M. 18 NOVEMBER 2010 News 9

Blackstone and TPG line up

to bid for troubled Egg bank
have an interest in Egg and could merge Egg with SAV Credit, which

▲
BANKING
BY MATTHEW WEST
BLACKSTONE and TPG are believed to
be preparing a bid for US lender
Citigroup’s online bank Egg.
Citigroup bought the unit in May
2007 for £546m from British insurer
Prudential. However binding offers
are expected to fall well short of that
level, at around £300m
Barclays bank is also believed to
merge it with its Barclaycard and
mortgage operations. But it remains
unclear if it will lodge a binding bid.
Blackstone has teamed up with
specialist credit card provider SAV
Credit, which is backed by private
equity investors Palamon Capital,
Morgan Stanley Alternative
Investments and Electra Private
Equity.
If successful, Blackstone would
owns the Marbles credit card brand,
taking control of the enlarged group,
one source said.
Citigroup has already said that Egg
is part of its portfolio of non-core
assets that it is looking to reduce.
The bank has never disclosed
financial figures for Egg, although it
was a troublesome asset for
Prudential, which set it up in 1998 as
one of Britain’s first internet banks.

Icap chief executive Michael Spencer Picture: Micha Theiner/City A.M.

Icap revenue
up on e-trade
enue of £596m, but its two per cent
▲

BANKING
BY MATTHEW WEST
ICAP, the interdealer broker, said yes-
terday revenue increased nine per
cent to £867m in the first half of the
year on the back of its electronic and
post trade units.
The broker said pre-tax profit also
rose by two per cent to £183m and it
raised its interim dividend by three
per cent to 5.27p.
Icap said growth was driven by a
rebound in its electronic brokerage
business, where revenue was up 24
per cent to £151m, having declined
last year, following September’s
launch of its electronic euro interest
rate swap platform. Icap said close to
€110bn of contracts had been trans-
acted and more than 1,000 trades.
Its post-trade service also saw rev-
enue increase 30 per cent to £90m.
Icap’s traditional voice brokerage
business remains its largest, with rev-
growth rate was overshadowed by the
smaller units.
Trading activity on Icap’s main for-
eign exchange system EBS and its
bond platform Brokertec was up 26
per cent on the previous year to
£750.3bn.
MIchael Spencer, Icap’s chief execu-
tive, said the broker was looking to
grow its post-trade services business,
which supports clients’ middle and
back-office requirements.
He added: “Icap has performed well
during the six months and we have
continued to make significant
progress towards our strategic goals,
including the launch of the electron-
ic euro interest rate swaps platform
with market maker support. During a
period of generally quieter markets
Icap has delivered good revenue and
earnings growth driven primarily by
our strong electronic broking fran-
chise.”

Irish Life relaxed over capital

levels if mortgage market falls
tial mortgage market, said it was
▲

EU ECONOMY
IRISH LIFE & PERMANENT said yester-
day it was confident Irish banks are
adequately capitalised to deal with
any downturn in the nation’s residen-
tial mortgage market.
Investors are worried home loans
could become a new black hole for
Ireland’s banks, but Irish Life, whose
permanent tsb banking unit is one of
the biggest operators in the residen-
comfortable with its capital position.
“We are very confident that the
regulatory stress tests for mortgages
are sufficient to cover even the worst
case scenario envisaged in Ireland,”
chief executive Kevin Murphy said.
Irish Life said mortgages over 90
days in arrears had risen by 11 per
cent since July but early arrears cases
had levelled off since May as unem-
ployment levels stabilised.
 The Capitalist
10 CITYA.M. 18 NOVEMBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

BETWEEN “It’s very

MURDOCH
AND A VERY
HARD PLACE
FINALLY! A chance for harried BSkyB chief
executive Jeremy Darroch to let his hair
down: the Sky Christmas party – or
“Winter Reception” – invites have been
issued, the balloons blown up, the goose
cooked. And it will be a well-deserved rest.
The Capitalist hears that Darroch has had a
stressful few weeks in the limbo surround-
ing News Corporation’s attempt to buy out
the rest of the Sky.
News Corp is keen to expand beyond its
39 per cent stake but its attempts have so
far been stymied by pesky regulators.
So Darroch faces an unusual quandary:
does he try to maximise profits and
increase the company’s stock price, thereby
aggravating his main shareholder by
upping the amount it will have to stump
up for the rest of the company? Or does he
keep a lid on growth and face the wrath of
the other 61 per cent of investors?
Never has just doing one’s best for the
firm seemed so complicated.
BARE ESSENTIALS
Every merger brings its trials, from the
lawyers’ fees to the “social issues”, but
top of the pile is surely what to name the
Sky chief executive Darroch will get to let his hair down
resulting hybrid.
Luckily, the honchos over at Essenta
have taken the bull by the horns. Essenta
itself is a merged version of Northern
Foods and Greencore – so what’s with
the brand new branding?
Chief financial officer Simon Herrick
was kind enough to satisfy my curiosity:
“The name is derived from ‘essential’ and
‘essence’, which are two words that play
to the quality of our food,” he said. So
what kind of essential food does he
mean? Well, Goodfella’s Pizza, Bisto,
Aunt Bessie’s… all essential, in their own
way.
But there might be another reason:
“It’s very difficult to find a name that
nobody else has already used, to be
frank,” Herrick admitted.
difficult to
find a name
that nobody
else has
already used,
to be frank,”
says Simon
Herrick.
Pictures: REX, Micha Theiner/City A.M.
CUNNING AS FOX
ROLL up for the most anticipated
Christmas bash of the season. Not a soiree,
that is, but a chance for some of the loud-
est mouths in media to bash one another’s
employers in a BBC-hosted panel entitled
“The future of news: BBC, Fox or a third
way?”
To be chaired by Nick Robinson, the
debate is to feature BBC director general
Mark Thompson, head of news for Channel
4 Dorothy Byrne, NewsWatch’s Raymond
Snoddy and, to keep the discussion on the
straight and narrow, former Sun editor
Kelvin MacKenzie.
MacKenzie is known for offering gener-
ous doses of his florid prose to all who will
listen, so I wondered how the hack fancies
Kelvin MacKenzie: a great talker
his chances against a panel including a
woman known for inviting Iranian
President Ahmadinejad to deliver Channel
4’s Christmas message.
MacKenzie isn’t too ruffled, it turns out.
“Mr Thompson has a large brain,” he said,
“but a small public speaking ability. I am
the exact reverse.”
The secret of getting applause on
Question Time revealed.
VOODOO CASH
Tired of sitting on all that amassed compa-
ny capital? Luckily, Capital Alternatives has
found a more fun way for you to store it
than using an exchange-traded fund
with a long name. The firm is selling a
collection of Elvis Presley memorabilia
that includes a cigar actually smoked
by the King himself. Or if Presley isn’t
your cup of tea, try a visit to
Bonhams on 15 December, where
one of Jimi Hendrix’s surviving gui-
tars will set you back an estimated
£80,000-£120,000. That ought to take
care of some of the cash and as for the
rest, did someone say Potash Corp?
Are you fast enough?
Race the Pros from Team Sky.
Race over one mile against the Team Sky Pros and your
colleagues in the IG Markets Square Mile Challenge.
Join us at Broadgate Circle on Friday 26 November.

Take on the challenge by signing up at

www.igmarkets.co.uk/cycling
 12 News
Former CEO
of Imaginatik
demands vote
▲
EXCLUSIVE
BY STEVE DINNEEN
CONSULTANCY firm Imaginatik
could be heading for an explosive
general meeting after its former chief
executive demanded the right to air a
string of embarrassing allegations.
Mark Turrell, who left the firm by
mutual agreement in June, has called
for chairman Matt Cooper and direc-
tor Shawn Taylor to be axed and
wants shareholders to vote for him to
be reinstated.
City A.M. understands Turrell, who
has called the meeting as the firm’s
biggest shareholder with a 35 per
cent stake, will make a number of
allegations, including that the board
was unaware of Cooper’s history of
mental illness.
An Imaginatik spokesman declined
to comment but a source close to the
company said Cooper had been very
open about suffering from acute anx-
iety, even giving an interview to a
national newspaper.
Turrell also alleges he was con-
structively dismissed, claiming the
firm threatened to put out a “highly
negative” statement to the market
regarding his personal life if he did
not sign a separation agreement.
It is understood both sides have
instigated legal action.
Imaginatik, which provides soft-
ware consultancy services, says it is
considering whether the request for a
general meeting is valid and will
announce its decision within 21 days.
A company spokesman said: “We
are confident that if the resolutions
set out are put to shareholders they
will be defeated,” adding the meeting
is “an unnecessary distraction and a
waste of the company’s resources”.
Former Imaginatik
boss Mark Turrell has
called for a meeting to
axe chairman
Matt Cooper
Bob Dudley became BP’s boss in the wake of the spill
BP accused of missing key
errors before giant oil spill
ENERGY
▲
BY HARRY BANKS
LACKING standards to weigh costs
against safety, BP and its partners
made critical errors leading to the
largest offshore oil spill in US history,
according to a scientific panel report
obtained by Reuters.
Interim findings from the National
Academy of Engineering and the
National Research Council attribute
the massive spill to workers’ decisions
Picture: Micha Theiner/City A.M.
to move ahead with temporary aban-
donment of BP’s doomed Macondo
well despite warning signs from a key
test of well integrity.
“The various failures mentioned in
this report indicate the lack of a suit-
able approach for anticipating and
managing the inherent risks, uncer-
tainties... associated with deepwater
drilling,” the report said.
Government regulators also failed
to provide adequate oversight for deep-
water drilling, according to the report.
CITYA.M. 18 NOVEMBER 2010
Entertainment
One hopes for
Peppa Pig boost
MEDIA
▲
BY STEVE DINNEEN
ENTERTAINMENT One, which owns
the rights to the Twilight movies,
said yesterday it cut its losses in the
last six months of the year.
The firm’s reported loss before tax
fell to £2.5m – down from £7.9m –
and included £1.8m of one-time costs
associated with the company’s move
to the main market in London.
The firm, which recently
announced the export of its smash-
hit children’s animation Peppa Pig to
the US, saw its revenues rise 30 per
cent to £212m
Chief executive Darren Throop told
City A.M. he is planning to roll out the
firm’s UK production operations in
its TV division through inorganic
growth.
Entertainment One is also hoping
Peppa Pig can emulate its UK success
when it hits the US next year.
It has made around £150m in the
UK and some analysts are speculating
it could rake in as much as £700m in
the US. Throop added: “The second
half has started well. We anticipate
the business will continue to deliver
good growth and are confident mar-
ket expectations will be met.”
The Toronto-based firm is also
Canada’s largest wholesaler of DVDs,
CDs and video games.
CITYA.M. 18 NOVEMBER 2010
Centrica on track to “
meet profit forecast
▲
COMMODITIES
BY MATTHEW WEST
CENTRICA, which owns British Gas,
continued to perform well during the
third quarter it said yesterday.
The group forecast operating profit
for the year would be slightly ahead
of market expectations of around
£2.2bn although this would be slight-
ly offset by interest and tax charges
relating to several joint ventures.
Centrica said interest charges were
likely to be over £200m adding net
debt stood at £3bn at the end of the
third quarter. Based on current esti-
mates of the mix of profits Centrica
expects its effective tax rate for the
financial year to be around 37 per
cent.
Last week British Gas said it was
increasing household gas prices by
seven per cent at the start of
December, blaming network charges
and environmental obligations as
News 13
ANALYSIS l Centrica
Centrica chief execu- 350 p
tive Samuel Laidlaw
said its full-year 332.20
operating profit 340 17 Nov
would be higher
than market expec-
tations of £2.2bn 330
320
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
ANALYST VIEWS: WHAT DO YOU THINK OF
CENTRICA’S RESULTS ? Interviews by Matthew West
MANOJ LADWA | ETX CAPITAL
Centrica continues to perform strongly and is mak-
ing progress towards the strategic priorities set out earlier
”
this year. Overall, the group’s forecast for operating profit for
2010 is slightly ahead of current expectations.
SCOTT BYROM | MONEYSUPERMARKET.COM
“ This is yet another kick in the teeth for customers of
the energy giant; the news comes hot on the heels of an
”
announcement last week that they would be facing a seven
well as a rise in wholesale prices for
gas and electricity. Yet in July, it said per cent increase on gas and electricity prices
half-year profits had been boosted by
the then low level of wholesale gas
prices. British Gas also said it had JONATHAN JACKSON, | KILLIK & CO
“
boosted residential energy accounts
by 270,000, this year.
Audrey Gallacher, head of energy at Centrica is well placed to cope with industry trends:
Consumer Focus, said: “Customers will energy efficiency, electricity decarbonisation, volatile com-
”
be baffled as to why they are being
told to pay more when British Gas are modity prices and security of supply. The medium-term out-
on track for such huge profits.” look remains very positive.
 14 News
Vedanta to float Zambian
copper miner in London
▲
MINING
BY MARION DAKERS
VEDANTA investors picked over the
details of its $1.1bn (£692m) plan to
list its Zambian copper company on
the London stock market yesterday.
Liberum Capital said in a note
that the total value of Konkola
Copper Mines, which is 79.4 per cent
owned by Vedanta, could be worth
up to $7.1bn if it hits increased quo-
tas.
CITYA.M. 18 NOVEMBER 2010
BEST OF THE BROKERS
ANALYSIS l Burberry 1,008.00
p
1,050 17 Nov BURBERRY
1,000
950
900
Standard & Poor’s rates the retailer as a
“hold” with a target price of £10.60 after
in-line half-year results. The broker believes
Burberry’s increased sales in non-apparel
play to its model as a luxury brand, but
However, other analysts are bookrunners. 850 does not expect any significant consensus
upgrades and believes the rise in GDP could
unsure the firm could hit its ambi- The team at JP Morgan includes
tious targets, which include more Joe Seifert, a vice president at the 23 Aug 13 Sep 1 Oct 21 Oct 10 Nov hamper its future performance.
than doubling copper production bank who advised Vedanta ANALYSIS l British Land
from 173,000 tonnes to 400,000 Resources on its $775m bond issue
520
p BRITISH LAND
tonnes a year. in March and miner Xstrata on its 488.70 Numis rates the real estate group “hold”
A spokesperson declined to put a $5.9bn rights issue last year. Chris 17 Nov
figure on the value of Konkola. Nichols and Laurence Holligworth 500 with an increased target price of 535p. The
Konkola, which is set to be the are also advising. broker believes there is only limited upside
first Zambian company to have a pri- Goldman Sachs’ advisers include 480 potential from internal asset management,
mary listing in the UK, has hired head of equity capital markets given the already strong land portfolio, and
Goldman Sachs and JP Morgan Matthew Westerman, Richard
Cazenove to act as joint sponsors and Cormack and Philip Lindop.
460 that peers Land Securities and Great
Portland have greater scope for growth as
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
rents start to pick up.
ANALYSIS l Vodafone VODAFONE
175 p
166.95 Evolution Securities has downgraded the
170
17 Nov telecoms giant to “reduce” from “neutral”
165 but has increased its target price to 168p
160 from 162p due to favourable currency
moves. The broker says the £3.1bn gained
155
from selling Japanese operator Softbank
150 was a positive surprise, but that the strug-
gling economy could hit sales.
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
To appear in Best of the Brokers email your research to notes@cityam.com
CITYA.M. 18 NOVEMBER 2010 News 15

VINTAGE BUBBLY WORTH £31K A BOTTLE

Iceland drafts a deal to repay
debts from its banking bailout
Netherlands earlier this year but the Dutch and Icelandic finance min-

▲
BANKING
BY MATTHEW WEST
ICELAND has drafted a new deal to
repay the British and Dutch govern-
ments the money they paid to bail
out investors who had saved with sev-
eral of its banks, including
Landsbanki, following their collapse
two years ago.
Iceland’s government put together
a deal to repay Britain and the
deal was rejected by voters in March.
The new deal is believed to be far
lower and would see Iceland repaying
40bn to 60bn Icelandic crowns
(£240m) to the British and Dutch.
The figure is well short of the £3bn
both governments paid out to
investors in high-interest Icelandic
bank accounts. However, it is believed
a big portion of the debt could be cov-
ered by a sale of assets in Landsbanki.
istries said no deal had been reached
but progress was being made.
“A final resolution of the matter
will hopefully emerge within a few
weeks,” the Icelandic finance min-
istry said.
Dutch finance minister Jan Kees de
Jager said full payment would still be
required.“The Netherlands does not
accept anything less than the princi-
pal plus interest,” he said.

EXPERTS have predicted that a batch of 168 bottles of vintage champagne salvaged by
divers during the summer is likely to become the world’s most expensive, with some
experts, who got to taste the first sample yesterday, estimating each bottle could fetch
more than €50,000 (£31,400). The first bottle goes on sale next year. Picture: REUTERS

Brazil boost
for Experian
Revenue grew eight per cent at con-
▲

BANKING
BY MATTHEW WEST
CREDIT reference agency Experian
hiked its interim dividend and said it
was continuing to look at ways of
returning cash to shareholders after
a stronger-than-expected first half of
the year boosted by Latin America.
Earnings before interest and tax
(Ebit) in the region jumped 36 per
cent year-on-year to $115m (£72.3m)
while revenue rose 22 per cent to
$350m.
Chief executive, Don Robert, said
Latin America was “incredibly impor-
tant” to Experian’s growth. The com-
pany acquired about 70 per cent of
Brazilian credit agency Serasa for
roughly $1.5bn three years ago. Since
then it has posted annual growth of
between 15 and 22 per cent.
The firm reported that net profit in
the six months to 30 September rose
to $260m from $249m a year earlier.
stant exchange rates and seven per
cent on an organic basis, to $2bn
from $1.87bn. Overall first half profit
before tax rose 12 per cent to $450m.
But pre-tax profit from continuing
operations fell to $283m from $316m.
Experian proposed an interim divi-
dend of $0.09 cents per ordinary
share, up 29 per cent adding it would
continue to look at ways to return
surplus cash to shareholders.
In May it responded to pressure to
unlock its cash reserves with a share
buyback. It said yesterday it had
bought back $147m shares under the
$350m programme.
“For the year as a whole, we expect
to deliver similar rates of organic rev-
enue growth to the first half, and we
are targeting modest improvement in
our Ebit margin,” said Robert.
Investors welcomed the report
with shares ending the day up 6.33
per cent, or 44.5p, at 748p.

Roche cuts 4,800 jobs over price

pressure and product setbacks
as in manufacturing after the setback
▲

PHARMACEUTICAL
SWISS pharmaceutical firm Roche
announced it would be cutting 4,800
jobs worldwide, or about six per cent
of its workforce, over the next two
years as part of a wide-ranging
restructuring programme forced on
it by price pressures.
Most of the planned job cuts will be
in its pharma unit, particularly in the
sales and marketing divisions, as well
of diabetes medicine taspoglutide
being delayed.
A further 1,500 jobs will be trans-
ferred to other locations within the
firm, or outsourced. Roche said it
would hack Sfr2.4bn ($2.4bn ) from
annual costs from 2012 onwards,
with Sfr1.8bn of savings expected
next year. It expects restructuring
costs will amount to Sfr2.7bn from
2010 through to 2012.
 16 Economic News
Part-time jobs
help boost UK
employment
UK ECONOMY
▲
BY JULIAN HARRIS
THE number of people out of work
in the UK has fallen, official figures
showed yesterday.
Unemployment fell by 9,000 in the
three months to September. The
total unemployment rate remains
unchanged, at 7.7 per cent, accord-
ing to the Office for National
Statistics (ONS).
The number of claimants – people
out of work and receiving benefits –
also fell, dropping by 3,700.
The total number of people in
employment increased 167,000 on
the previous quarter, and by 320,000
people in the last two quarters – the
highest growth rate since the late
1980s.
Yet employment minister Chris
Grayling warned that 5m people are
still claiming out of work benefits.
American inflation slumps to
its weakest rate for 53 years
▲
US ECONOMY
CORE US inflation fell to an annual
rate of just 0.6 per cent in October,
according to data released yesterday
by the Labor Department.
This is the lowest 12 month
increase in the 53 year history of the
index.
The Consumer Price Index (CPI)
“less food and energy” recorded no
increases at all for the third month in
a row.
Energy prices, however, continued
“We have to get our labour force
ready for the recovery and our bene-
fit claimants ready for the work-
place”, he said.
Much of the recent improvements
have been driven by part time work.
In the 12 months leading to the lat-
est figures, part time jobs grew by
4.2 per cent, while full time jobs fell
by 0.2 per cent.
Average earnings for July to
September were below inflation, up
just two per cent on last year. Yet
despite real earnings declining,
there are signs of a business-driven
recovery. “If the labour market
remains flexible and onerous regula-
tions are scrapped or at least sus-
pended, the private sector should
eventually be able to absorb the tem-
porary job losses created by the fiscal
austerity plan”, said David Kern,
chief economist at the British
Chambers of Commerce (BCC).
to soar, increasing by an average of
2.6 per cent, while energy commodi-
ties (such as gasoline and fuel oil)
increased by 4.4 per cent.
The CPI has now shown energy
prices increasing for four successive
months, since July
However, prices on these items
remain volatile. On average energy
items only increased by 0.7 per cent
in September, yet this rate shot back
up to 2.6 per cent last month.
The CPI charts price changes of
goods and services purchased by US
HOW THE MPC VOTED ON RATES IN NOVEMBER
Mervyn King Paul Tucker
Spencer Dale Charles Bean
Adam Posen Paul Fisher
+£50bn QE
households, surveying 4,000 housing
units and approximately 25,000 retail
establishments.
The news came as the US
Commerce Department announced a
11.7 per cent fall in housing construc-
tion, the lowest the figures have been
for 18 months and below predictions.
The fall leaves the annual housing
construction rate at 519,000 units.
And on Tuesday core US producer
prices recorded their biggest fall in
over four years, after large declines in
vehicle prices.
Andrew Sentance
David Miles
Martin Weale
Bank of England’s Tucker
is upbeat on UK economy
▲
UK ECONOMY
PARTS of Europe are experiencing
difficulties but Britain’s economy
looks in better shape now than it was
a few months ago, Bank of England
deputy governor Paul Tucker said yes-
terday.
In an interview with BBC Radio
Oxford, Tucker struck a cautiously
upbeat tone and reiterated the cen-
tral bank’s commitment to bring
“uncomfortably high” inflation back
to target.
“The world is still a hazardous
place and there are obviously diffi-
CITYA.M. 18 NOVEMBER 2010
All steady as
MPC decides
to wait and see
▲
UK ECONOMY
INTEREST rate changes remain off
the agenda after the majority of the
Monetary Policy Committee (MPC)
voted to continue their policy of
“wait and see”, it was announced yes-
terday.
The Bank of England’s interest rate
setting body replicated last month’s
meeting, with seven of the commit-
tee’s nine members voting against
changes to either interest rates or lev-
els of quantitative easing.
A rate increase of 0.25 per cent was
again suggested by Andrew Sentance,
while Adam Posen continued to pro-
pose £50bn more in quantitative eas-
ing. Yet neither convinced any of the
other members to support their
opposing proposals.
The minutes of the meeting, held
on 3 and 4 November, concluded that
“most members felt the balance of
risks had not altered decisively” and
that currently policy should be main-
tained.
“Given the uncertainties surround-
ing the economic outlook it’s no sur-
prise there’s now a three way split on
the MPC” said George Buckley, UK
economist for Deutsche Bank.
culties around Europe. But I think the
UK is in a better position now than
perhaps it was a few months ago,”
Tucker said.
Tucker said the government’s
action to cut the budget deficit had
taken away some of the risks to the
macro-economic outlook, and noted
it had been widely welcomed by the
business community.
The action that has been taken to
put the UK public finances on a better
footing over the next few years pro-
vides some insulation for our econo-
my,” he said. He said businesses were
“mildly optimistic” on the future.
CITYA.M. 18 NOVEMBER 2010
Speedy Hire set for boost
from 2012 Olympics work
▲
CONSTRUCTION
BY THOMAS HAMED
SPEEDY Hire yesterday reported a
larger-than-expected loss for the six
months to 30 September.
Its adjusted pre-tax loss was £9.9m
between April and September, com-
pared with a loss of £4.8m a year ago.
Sales fell 4.1 per cent to £177.3m.
Despite the losses, Olympic spirit
and private spending are expected to
boost Speedy Hire’s prospects.
The firm is part of a consortium of
firms providing construction equip-
ment at Olympic Park, one of the
largest civil engineering projects in
Britain today.
The firm also expects recent con-
tracts from Balfour Beatty, Babcock
and Costain to add to second half
growth. One contract, from Costain,
names Speedy Hire as an equipment
provider for an oil complex in Abu
News 17
Dhabi. Sales from the international
division increased to £4.5m, up from
£0.8m in the same period.
All of these developments encour-
age chairman David Wallis.
Combined, he said the projects, “pro-
vide grounds for confidence for the
future, especially as these are now
supported from a more efficient oper-
ating base”.
Speedy Hire shares closed down 3.7
per cent at 26.25p. Speedy Hire sees huge opportunity in the Olympic development projects Picture: REX
 18 News CITYA.M. 18 NOVEMBER 2010

Lactalis makes a move for

Yoplait with a £1bn plus offer
be below the €1.5bn pricetag some The sale process, which started this
▲

FOOD
BY HARRY BANKS
EUROPE’S largest dairy group Lactalis
said it had offered to buy all of French
yoghurt maker Yoplait with a view to
creating a world dairy giant.
Unlisted Lactalis did not put a price
tag on its offer, but a source close to
the deal said the offer valued Yoplait
at around €1.3bn (£1.1bn), or over 10
times its operating profit.
The Lactalis offer would however
close to Yoplait have been looking for.
“The Lactalis offer, the sole French
offer, would give birth to a big French
dairy sector champion worldwide
and would keep the Yoplait brand
within the national patrimony,”
Lactalis said.
Unlisted Yoplait has been in the
spotlight since the summer when pri-
vate equity fund PAI Partners said it
wanted to sell its 50 per cent stake in
the company.
month, could also draw interest from
food giants such as Nestle, General
Mills, which distributes the Yoplait
brand in the United states, Asian food
groups and private equity groups.
The sale process was officially
launched a few days ago, according
to sources.
The second largest Yoplait stake-
holder, France’s largest milk coopera-
tive Sodiaal, reiterated yesterday it
would not sell its 50 per cent stake.

Barratt boss Mark Clare said access to mortgage finance is the industry’s biggest issue

Gloom hinders
Barratt sales
gage finance remains the single
▲

CONSTRUCTION
BY HARRY BANKS
BUILDER Barratt Developments yester-
day reported an autumn slowdown in
reservations, as an uncertain econom-
ic environment and limited mortgage
availability continued to weigh on con-
sumer sentiment.
Net reservations per active sales site
stood at 0.45 compared with 0.55 a
year ago as homebuyers took longer to
commit to buying ahead of a govern-
ment announcement on spending
cuts in October, Barratt said.
Britain’s fourth largest house-
builder by market value echoed its
peers in saying a lack of mortgage
lending was obstructing a recovery of
the housing market. “Access to mort-
biggest issue for the industry,” said
chief executive Mark Clare.
A sharp drop in mortgage availabili-
ty from banks rebuilding their balance
sheets has crimped demand for homes
in Britain, with analysts expecting
transaction activity to remain flat for
the foreseeable future.
Net debt nudged up to £575m dur-
ing the period, as the company spent
£220m buying around 4,500 land
plots. The total average selling price on
completions rose nine per cent to
£180,000.
Clare said new build homes repre-
sented a relatively small part of the
wider house sales market, and the
group was focussing on achieving
high margins from its land plots.

Champion Trader - Day 3

l Week 2

sbwilliams consolidates his pole position today with a new look to the leader board, TheMysterTrader
and Gekko1981 have lost ground but are still sitting dangerously in the top ten. The players on the up are
jasonkhan and alsonove who have moved into second and third respectively. Can you make the top 10?
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2 jasonkhan £139,608.44 1,296
3 alonsove £95,038.83 850
4 shidong £93,871.03 839
5 rhona45 £75,897.09 659
6 urosbric3 £62,793.00 528
7 TheMysteryTrader £58,328.95 483
8 dadaas £41,419.00 314
9 garnz123 £41,378.00 314
10 Gekko1981 £34,722.79 247
To register and the full standings, visit www.intertrader.com/champion
 Lower margins

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 20 News CITYA.M. 18 NOVEMBER 2010

Sandeesh’s star dims as screen experience flops

“big screen experience”, a rather erable self-awareness: “I have to reign mally mild-mannered Nick was rattled huffing that his talents were being
grand description for getting £15 off in my extreme masculinity in by Stuart. “Who does he think he wasted, their stall opened an hour late.
harassed shoppers so their children this task”. I’m told those is?”, he hissed in his best With little interest from the punters,
can stand against a blue screen. watching in HD will be able Downton Abbey voice. Perhaps they slashed their prices and stole the
The teams were given stalls in to see testosterone dripping Nick was intimidated by that other team’s idea. “Anything’s worth a
Westfield (it’s a shopping centre, down the screen. extreme masculinity. go”, was Sandeesh’s verdict.
Sandeesh) but first they had to do Leading a team of Despite Stuart’s best Inspiring as her motto was, it wasn’t
some filming. Synergy – led on Lord women, he quickly assert- efforts, Apollo did well. Jo in enough to secure victory and
APPRENTICE REVIEW Sugar’s insistence by Sandeesh – want- ed his authority, remind- particular excelled at multi- Sandeesh found herself in the final
ed to give the kids a bit of glamour and ing them of his own tasking: buying props, three for the fourth time. With the
GRAEME ALLISTER excitement so the choice was obvious:
the indoor ski slope in Milton Keynes.
successes and unassail-
able instincts. Poor
attracting customers, enter-
taining children and
innocent eyes of a woodland creature
and the demeanour of a grounded
6am summons to Pinewood stu- Meanwhile Stuart (Apollo’s team Stella, a decrepit 30 explaining why the price teenager, she took Liz and Chris with

A dios and Sandeesh’s brain was

whirring. Pine… wood… Pine… “I
think it’s a furniture store”, she
informed the others of the home of
British cinema. Their task was to sell a
leader) headed to a track to live out his
Top Gear fantasies, taking just a
moment to let everyone know about
the BMW he owns.
As ever Stuart demonstrated consid-
years old, was written
off for weaknesses
such as the need
to make notes.
Even the nor-
had suddenly risen.
Things weren’t so
smooth on Synergy.
With little organisa-
tion and Jamie
her, the team’s hardest workers. Lord
Sugar went through the motions but it
was clear who his victim would be;
Sandeesh’s small screen experience
came to an abrupt end.

FREE
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CONSUMER GOODS about possible anti-competitive
BY HARRY BANKS effects in Belgium, the Netherlands,
Sony 40” Full HD 1080p BRAVIA Wi-Fi Ready Denmark, Britain, Ireland, Spain and
LCD TV KDL-40EX503 ANGLO-DUTCH consumer goods firm Portugal. Sara Lee’s Sanex deodorants
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• BRAVIA Engine 3 • 4 x HDMI chase of Sara Lee Corp’s bodycare busi- The Sara Lee brands acquired by
ness after pledging to divest some Unilever had annual sales of more
1/2 assets from the acquisition. than €750m, with earnings before

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price
blu-ray Only £749.99 The European Commission said
Unilever’s plan to sell Sara Lee’s Sanex
brand and related business in Europe
interest, tax, depreciation and amor-
tisation of €128m, for the year ended
in June 2009.
Back player had eased concerns that the takeover
could hurt competitors and lead to
Sara Lee interim chief executive
Marcel Smits said in a statement that
£111.70
Net price £638.29
higher prices for consumers.
“As Unilever offered a strong and
the deal would have no effect on
plans to repurchase between $2.5bn
All-new Blu-ray Disc™ player with online video and back-lit remote - BDP-S373 clear-cut remedy to address the com- and $3bn of shares by the end of fis-
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Competition commissioner Joaquin still looking into options to sell off the
Almunia said in a statement. unit, which includes shoe care and
The regulator had been concerned Asian cleaning brands.

Claim Claim SHOULD THE UK HELP TO BAIL IRELAND OUT OF ITS

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Sony 32” Full HD 1080p BRAVIA Wi-Fi Ready Sony 40” Full HD 1080p BRAVIA LCD with “I suppose that because we are not in the
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hand, we are supposed to be united. Maybe we
was £549.99 now £469.99
Offer ends 23.11.2010
was £749.99 now £599.99
Offer ends 23.11.2010
should work with our European partners to
craft a package.”
Sony 40” Full HD 1080 3D LCD TV with
Dynamic Edge LED - KDL-40HX803
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Claim “Ireland is a part of the British Isles so we

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Net price £1063.83 was £1499.99 now £1249.99 Offer ends 23.11.2010
I’m not really sure what form it should take.“

LONDON
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sure they would help us out if we needed it. But
it should be a combined effort that the UK
should be part of, not just us.”
 Landmark spreads

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22 News CITYA.M. 18 NOVEMBER 2010

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

past he has conducted fund manage- electronic trading platform of BGC worked at Gartmore Fund Managers
Canada Life Investments ment research and selection. Partners. and Prudential-Bache Securities. The
Canada Life Investments has announced the addition follows on the heels of its
appointment of David Marchant as head of Ambition Moelis & Company recent hiring of Catherine Evans as
securities. He will be responsible for oversee- Ambition, the global specialist Michael Findlay has been announced institutional sales director.
ing the fixed income and equity desks in a recruitment company, has named as new managing director of the
role that has been created in order to build Guy Day as its new CEO. He is cur- independent global investment bank Shazam
the firm’s investment franchise. Marchant rently the company’s regional MD of Moelis & Company, to be based in The mobile discovery provider
has 25 years’ experience, having been head the business in Asia and the UK but London. Findlay has 20 years’ experi- Shazam has appointed Evan Krauss
of global equities at Insight Investment, he will now be in charge of Australia ence working with clients in equity as executive VP of advertising sales.
before which he worked at Equitable Life. as well, from January next year. Day markets, having advised on capital He joins from JumpTap, where he
has been at Ambition since January markets on a range of issues, includ- was senior VP of global ad sales and
2001 when he was responsible for ing strategic transactions. In the business development. Previously, he
Cheyne Capital Management worked for Lehman Brothers. launching its Asian operations. past, he has been managing director spent six years at Yahoo! where his
Cheyne Capital Management has and co-head of Europe, the Middle latest role was as MD of Yahoo!’s
appointed a new partner, after a OBSR IPC Systems East and Africa at Merrill Lynch, connected life business unit.
period of new inflows and clients OBSR, a Morningstar company that Richard Petrie is joining IPC Systems leading relationships with numerous
since 2009 and the launch of several provides independent investment as VP of network operations for FTSE 250 clients and advising on a AXA Real Estate
funds. John Hyman will join the firm fund research and advice, has made Europe, the Middle East and Africa. number of mergers and acquisitions. AXA Real Estate, the property man-
to develop its equity business, launch two new additions to its research In this new role, he will be in charge ager with €39.5bn assets under
new products and generate research analyst team. Richard Whitehall and of driving growth and expansion, Fundsmith management, has announced the
ideas. Diego Higuera will join a team led by particularly in the European market. The new asset management compa- appointment of Olivier Thoral as
Hyman has 23 years’ experience in Ruli Viljoen, head of investment The firm’s on-net community now ny, Fundsmith, has announced the head of North America. He will start
equities. He is moving over from research, swelling the ranks of his includes 4,000 people with direct appointment of Conrad Rey as sales immediately and will be in charge of
Morgan Stanley, where he has analysts to a total of 17. connectivity to over 1,000 financial director. Rey will be responsible for growing the business in his region
worked for 17 years as co-head of Whitehall will be doing research firms and over 40 exchanges global- marketing to independent financial and coordinating US activities.
global capital markets and oversaw on UK and global equities and funds, ly. Petrie moves over from COLT advisers, wealth managers and
all of the bank’s equity transactions having worked at a boutique invest- Telecommunications, where he was multi-managers. Before moving to DTZ
in Europe, the Middle East, Africa ment firm. Higuera will be focusing head of product and solution servic- Fundsmith, he worked at Standard DTZ has named a new investment
and Asia between 2005 and 2009. on emerging markets, Asia, North es. Before that, he was global head Life Investments as an investment director. Stuart Spalding joins with
Before joining Morgan Stanley he America and absolute return. In the of network services at eSpeed, the director. In the past he has also 16 years’ experience in investment.
To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

Amgen eyes up £4bn deal

PHARMACEUTICALS
▲

“A bid would make sense, allergic conditions, which would

HARRY BANKS
SHARES in the Swiss drugmaker
Actelion, which specialises in pul-
monary hypertension drugs and
has a market capitalisation of
about $6.6bn (£4.2bn), were up
yesterday morning on reports
that the US biotech firm Amgen
TWO CURRIES was studying a takeover offer.
Actelion shares have gained 35
per cent since early October as
HELPED TRANSFORM takeover talk swirled, recouping
most of this year’s losses following
a series of drug setbacks.
PAUL’S LIFE
Amgen is in an uncomfortable sit- strengthen the Amgen pipeline.”
uation because sales have been Amgen has said it is looking to
eroding,” said Helvea analyst Olav expand internationally and ana-
Zilian, citing Actelion’s pul- lysts have previously named
monary arterial hypertension Actelion as a potential target.
(PAH) treatment Tracleer as a Actelion’s efforts to reduce its
potential $2bn a year drug by dependence on key drug Tracleer,
2015. which treats a rare heart and lung
He added: “We expect their PAH disorder and rakes in more than
franchise could extend well
beyond 2015 with two late stage
$1bn a year, have been thwarted
by a string of recent setbacks.
compounds to substitute Tracleer Actelion’s stock closed up nine per
when the patent expires. And they
have two mid-stage compounds,
cent at SwFr54.60.
Amgen spokesman David Polk
for auto immune disorders and declined to comment.

On Wednesday 6th April 2011 the City will once

again come together to support ABF The Soldiers’
Charity at the fourth annual Lord Mayor’s Big Curry
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both his lower legs in an IED attack in Afghanistan F[j[h BWcX š 7dZh[W C[Z`[i_#@ed[i š >k]^ C[dZ[i š >_heae DWaWe š 9^h_i E\_b_ š =hWoied F[hho
during an intelligence mission.
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All the money raised goes to the
charity’s Current Operations Fund
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 24 Consumer News CITYA.M. 18 NOVEMBER 2010

Paddy Power hires TED BAKER SEES REVENUE JUMP ON OVERSEAS SUCCESS
SHOPPERS flocking

500 staff in Dublin

to Ted Baker for its
butterfly knitwear
and military-style
coats helped the
fashion chain post
a 20 per cent jump
in revenues for the
country fell off. three months to
▲

LEISURE
Irish business minister, Batt November. The
IRISH bookmaker Paddy has O’Keeffe. said: “Paddy Power is now a retailer said sales
announced the creation of 500 new major Irish employer and today’s were 8.6 per cent
jobs at its Dublin headquarters, as its announcement will bring the firm’s higher than the
revenues rose. workforce here to more than 2,200.” same time last year
The chain said it saw net revenues “Paddy Power’s rapid international and it was “encour-
in the last three months climb 17 per expansion has direct revenue benefits aged” by its new
cent in the UK and 70 per cent in for the Irish Exchequer.” international
Australia. However in the Irish The company said it would create a stores.
Republic they were up only nine per further 640 jobs in the UK and Picture: REX
cent as gambling in the cash strapped Australia by 2013.

TARRANT’S
Mothercare
CHRISTMAS sees foreign
MUSIC sales beat UK
QUIZ
▲
RETAIL
BY JOHN DUNNE
MOTHERCARE posted a 22 per cent
rise in first-half profit yesterday, with
a strong performance overseas offset-
ting weak UK sales.
Have a Christmas party The baby and mother goods retail-
er, with more than 1,200 stores in 54
with us – come and join countries, said it made an underlying
pre-tax profit of £12.2m in the 28
Chris Tarrant for a fun weeks to 9 October.
That compares with £10m in the
¿OOHGHYHQLQJRIPXVLF same period last year.
Overall sales rose 7.5 per cent to
PD\KHPDQGVLQJLQJ £590.2m, with overseas retail sales
overtaking British sales for the first
time. International sales were up 17.3
per cent, reflecting 112 new overseas
Tuesday 30 November stores, but UK sales fell 0.4 per cent.
Mothercare opened 112 international
6.45pm - 11pm stores in the period, including open-
ing its 50th store in India.
It has also raised its store opening
target for the year from 100 to 150,
7KH 1XUVHU\ 3DYLOLRQ boosting retail space by 20 per cent.
Sales in the company’s home shop-
Lord’s Cricket Ground ping business, were 11.6 per cent
higher at £64.7m.
London Chief executive Ben Gordon said:
“The UK consumer environment
remains uncertain and we continue
to plan cautiously.”
Mothercare is paying an interim
dividend of 6.4p, up 16.4 per cent.
Shares in Mothercare have lost eight
per cent of their value over the last six
months, hit by its warning in July that
profit margins would suffer from
price cuts and promotions as it seeks
to attract cash-strapped shoppers.
Gordon added: “We are however
benefiting significantly from the
strategic initiatives we have taken
and from the rapid growth of interna-
tional.”
The chain has 1,217 stores in 54
countries, and is planning to expand
its parenting centres in out-of-town
sites where all the ranges are includ-
ed.
ANALYSIS l Mothercare 520.00
560 p 17 Nov
550
530
510
490
16 Aug 6 Sep 24 Sep 14 Oct 3 Nov

7HDP HQWU\ IRU  SHRSOH

LV … SHU WHDP LQFOXGLQJ HMV exchanges contracts on
two-course dinner
£13.7m Oxford Street lease sale
'UHVVWRLPSUHVV more customers in the tough con-
▲

RETAIL
HMV yesterday announced that it had
&DOO020 7821 2828 to book tickets exchanged contracts on the disposal
of the leasehold for its store at 360
RUHPDLOHYHQWV#ORUGVWDYHUQHUVRUJ Oxford Street to US fashion retailer
Forever 21, for £13.75m.
In a statement HMV said the
money will be used to reduce debt.
It said that it will also work hard to
transfer sales to its existing flagship
store at 150 Oxford Street and its
Trocadero outlet, as well as to its con-
cession at Selfridges, which is near
Registered Charity No. 306054 the store being sold.
It is understood HMV will also
invest in both Oxford Circus and
Trocadero stores in a bid to pull in
sumer climate.
Chief executive Simon Fox said that
the deal represents great value for
shareholders in the current economic
climate.
“We are confident of consolidating
a proportion of the store’s sales into
the remainder of HMV’s West End
estate, including our flagship store at
Oxford Street, where we recently
extended our lease for a further 10
years,” he said.
“HMV’s strong London presence
will also enable us to redeploy our
store colleagues from 360 Oxford
Street to stores within a reasonable
travelling distance,” he added.
CITYA.M. 18 NOVEMBER 2010
Securitas eyes new UK deals
Alf Goransson tells John Dunne
how the economic turmoil has
provided opportunities to buy rivals
THE chief executive of Securitas, one
of the world’s largest security compa-
nies, is warning that the global threat
posed by terrorism is escalating while
vigilance at airports means travellers
will have to pay the price with longer
queues.
The company Alf Goransson leads
provides security at four airports in
the UK, including Liverpool and the
City of Manchester, as well as for
retail giant Marks and Spencer.
The Sweden-based firm is the sec-
ond largest security firm operating in
the UK after buying rival Reliance.
Earlier this week it posted sales
worth $144m (£90m) for the past
quarter, beating forecasts. Goransson
said the company made an acquisi-
tion at least once a month and was
eyeing other targets in the UK.
“When there are economic prob-
lems, opportunities do arise and if
the price and opportunity is right we
are interested.”
The executive admitted that the
rise in the terror threat as well as an
increase in blackmail and the theft of
data, which could cripple a business
overnight, offered his sector opportu-
nities.
“Unfortunately the world is getting
a more dangerous place, what with
To register for this event, visit:
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This adver tisement contains numerous trade marks belonging to The Royal Bank of Scotland Group plc and other companies in the RBS Group. These trade marks include, but are not limited to, The Royal Bank of Scotland logo, The Royal Bank of Scotland and RBS. If you are in doubt as to
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EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authority
Securitas chief
executive Alf
Goransson has seen
his firm
beat market
expectations
the raised terror threat, more black-
mail and other things.
“Increased airport security is a fact
of life, but it is necessary. I think
there will be more use of full body
scanners.”
He said that the patrolling and
checking of ports was increasing as
the potential for terrorists exploiting
cargo had risen up the agenda since
an alleged plot to bring a cargo plane
y. RBS is an authorised agent of The Royal Bank of Scotland N.V in cer tain jurisdictions.
ANALYSIS l Securitas
8.2 SEK
8.0
7.8
7.6
7.4
7.2
23 Aug 10 Sep 30 Sep 20 Oct
down over the US. also gearing up for a possible shoplift-
“We are seeing an expansion of our ing bonanza at Christmas as the aus-
maritime division as the world tries terity measures threaten to create a
to come to terms with the threat.” crimewave. “We are always aware of
Goransson said the company was the amount shoplifters cost retailers,”
enjoying a flourishing relationship he said. On the future of the business
with M&S, where it is carrying out a Goransson is upbeat, particularly as
crackdown in store car parks with the US market has picked up.
teams in CCTV vans swooping on van- “Things are picking up and with our
dals and thieves. The undercover acquisitions and cash position we are
detectives patrolling the stores are well paced,” he concludes.
News 25
BoA is forced to
repay $500m in
7.80
Lehman assets
17 Nov
BANKING
▲
BANK of America Corp was ordered
by a US judge to return $500m
(£314.1m) of deposits it seized from
Lehman Brothers Holdings shortly
after Lehman’s record bankruptcy.
US Bankruptcy judge James Peck
said Bank of America violated federal
law when it “brazenly” seized the
deposits, after having taken advan-
9 Nov tage of Lehman’s weakened condition
in the summer of 2008 in obtaining
the money.
“It is difficult to understand how
Bank of America could have thought
that taking the money was the right
thing to do without first seeking per-
mission from the court,” Peck wrote
in a opinion filed in Manhattan bank-
ruptcy court.
“The actions taken were surprising
and, quite frankly, disappointing for a
leading financial institution that
should care a great deal about its rep-
utation,” he wrote.
The decision is a victory for
Lehman as it tries to repay creditors
still owed hundreds of billions of dol-
lars following its 15 September 2008
bankruptcy.
Peck directed Lehman to draft an
order calling for the return of the
$500m plus interest, and for the par-
ties to meet to discuss “the amount of
any further monetary award.”
 26 News | Interview
The Tube boss who is battling to
rebuild the world’s oldest network
Mike Brown is fighting
to combat strikes and
boost funds while
trying to upgrade a
157-year-old railway
I
t has been a tough few months for the
new managing director of London
Underground. Mike Brown, a compa-
ny veteran who returned in March,
faces his fourth strike over the axing of
ticket office jobs in a matter of weeks.
Tube unions RMT and the Transport
Salaried Staffs’ Association say getting rid
of 800 ticket office jobs will make stations
dangerous. London Underground, which
employs 12,500, say they want staff out on
the stations rather than cooped up in
offices. It adds that because of voluntary
redundancies and unfilled posts over 500
of these jobs have gone already, and what
the unions really are fighting is the mod-
ernisation of the 157-year-old network.
“I want staff to be more flexible, I make
no apology for that,” says Brown in a sur-
prisingly soft Belfast accent. “Every busi-
ness in the country has to respond to new
technology as it comes along. We will not
run a service that is stuck in the 1960s.
There is no alternative to modernisation.”
A resolute Brown is sitting in a small
office next to the Tube’s network opera-
tions centre, where all of the systems’ 11
lines and 270 stations are monitored. It is
on the first floor of the network’s art deco
headquarters above St James’s Park sta-
tion. The short, trim Brown is a little over
six months into his second stint at the
Tube, and he could hardly have come back
at a more challenging time.
The network’s 30-year, £29bn public pri-
vate partnership has collapsed after just
seven years, leaving him to direct the nec-
essary upgrades. Crossrail, the largest civil
engineering project in Europe, must be
smoothly integrated into his network. All
of this must be managed after an eight per
cent budget cut as a result of the
Comprehensive Spending Review (CSR).
And one of the most powerful unions in
the country has already shown that it is
willing to strike if it does not like the
change in working practices these new
projects threaten. The next union stop-
page is set for 29 November, though both
sides are still in talks.
Brown says the Oyster card has “trans-
CV | MIKE BROWN
Age: 46
Work: Returned to London Underground
as managing director in March 2010; man-
aging director of Heathrow for BAA from
2008-2010; chief operating officer at
London Underground from 2003-2008;
works his way up the London
Underground ranks from 1989-2003; joins
London Underground as manager of
Neasden cleaning depot in 1989; starts his
career as a graduate trainee at Rank Hovis
McDougall
Education: Queen’s University, Belfast,
where he read economics; MBA
Family: Married, one son
Lives: Wimbledon
formed” Tube travel in the same way the
ATM has changed the way people get cash
from their accounts.
He says: “How many people do you
know who write a cheque to themselves
and take that to a cashier in a bank? Not
many. And with Oyster people have also
moved on. They buy online or from kiosks.
We can’t have people sitting in offices sell-
ing a few tickets every hour. Unions need
to wake up to the reality of where we are
right now. We are willing to listen to safety
concerns. But the unions have not put a
genuine safety issue on the table.”
Brown argues that he is making head-
way against the effects of the strike.
During the third stoppage earlier this
month he ran 50 per cent of the network,
compared to 40 per cent of trains during
the second walk out.
Unions have asked Mayor of London
Boris Johnson to join the talks in a bid to
break the deadlock. But Johnson has said
he has no plans to reward “bad” union
behaviour with “beer and sandwiches at
City Hall.” Brown agrees: “I brief the Mayor
every week. But it’s right that he leaves the
talks to us.”
However, many Londoners feel that
once this issue is settled another concern
over modernisation will arise and both
parties will be back to square one. And
that RMT general secretary Bob Crow, who
is popular among his members (but not
the public) for winning them good pay
and conditions, will again call out the
Tube’s drivers on another strike.
Brown counters: “I’m more optimistic
than that. I’m proud of the announce-
ments our drivers make when things go
wrong. I’m proud of the way our staff help
the public in our stations. They under-
stand changes have to be made.”
The Tube PPP was introduced in 2003 to
finance much-needed upgrades to the net-
work. And while £12bn has been spent in
that time with some good station
improvements carried out, Brown is clear
the process failed to move quickly enough
WORDS BY ROGER BAIRD
London Underground or take on the biggest challenges.
managing director London Underground is now in charge
Mike Brown in the of its rebuilding programme after it
Tube’s network bought one of the two upgrade firms,
operating centre at Tube Lines, in June for £310m, after the
the railway’s company said it could not manage the
headquarters above next seven-and-a-half year tranche of work
St James’s Park for the £4.46bn set by the PPP arbiter Chris
station Bolt. The other upgrade company
Metronet collapsed in 2008, and had to be
Picture: absorbed into London Underground at a
Micha Theiner cost of £2bn to the taxpayer.
/City A.M. Brown says: “There was some delivery
under PPP. But there was little momen-
tum on the large big ticket projects that
will really make a difference to London.”
By this Brown means signalling. New
stations and trains may look good, but
“signalling is absolutely crucial to the net-
work. It allows trains to run closer togeth-
er, more frequently and adds capacity.”
This is what the PPP failed to deliver,
says Brown. Now it has taken over from
Tube Lines, he says, the signalling on the
Jubilee Line, which will add 30 per cent
capacity, will finally be ready by spring
2011, two years behind schedule.
Past signal testing on this line has per-
formed poorly and Brown says part of the
problem “is that we could never talk
directly to the signalling company. We
“Unions need had to go through Tube Lines. Too often
during the PPP we were reduced to the
to wake up to role of an interested observer.”
Brown adds that he is at the final ten-
the reality of der stage for the signalling on the net-
work’s three main sub surface lines – the
where we are Metropolitan, Circle and District lines.
These lines also have 191 trains on order, a
right now. few of which will come into service before
Christmas.
There is no The Victoria Line has about half of its 40
new trains in service with the remainder
alternative to coming in by the middle of next year,
which will add 30 per cent capacity to the
modernising route.
Victoria station has begun a £700m
the Tube”. refurbishment, which like the King’s
Cross development, will open up the con-
CITYA.M. 18 NOVEMBER 2010
course and prevent overcrowding. The
new Victoria station, which accommo-
dates 91m passengers a year, will be com-
pleted in 2018.
Brown also wants to restart work on the
Northern Line signalling early next year.
He stopped work here in the summer after
it bought Tube Lines because the early
evening and weekend closures were caus-
ing too much passenger disruption. He is
currently talking to local businesses about
the best way to go forward and is studying
if block closures may be less painful. Work
on the Northern Line is set to start again
in the first quarter of next year and be
completed in 2018.
But whatever way you look at it the
Tube will undergo another “eight or nine
years” of major work says Brown.
The Tube boss says Johnson did “a fan-
tastic job” fighting the case for London
during the CSR. After extra borrowing
from the markets and boosted fares, trans-
port in the capital now faces an eight per
cent cut of its £9.24bn annual budget.
Brown is sure his department can make
up this difference out of efficiency sav-
ings.
Crossrail will have its budget cut by
£1bn to £15bn and will be completed a
year later in 2018 as a result of the CSR.
Some critics are concerned that
Crossrail’s interconnections with the Tube
– at Farringdon, Bond Street and
Tottenham Court Road – is where cash
will be cut from the project, which in fact
would lead to increased congestion rather
than easing it. However, Brown is
adamant that these vital connections will
not be “descoped.” He says: “Crossrail and
an upgraded Tube will ease congestion in
London. But the two must come together,
it is not an either or option.”
What is clear is that Brown will face a
lot of hard choices over the next few years
as the rebuilding of the world’s oldest
Tube network, his duty to passengers and
his relations with the unions pull him in
different directions.
CITYA.M. 18 NOVEMBER 2010
In English
for the first
time, read
The Truth
About IKEA
Johan Stenebo left Ikea in 2008.
His book, published in the UK on
25 November, reveals its dark side.
W
ITH an insider’s knowledge, Johan
Stenebo’s controversial book is a
remarkable, personal view inside a
company that overtook Argos as the
UK’s largest home furnishings retailer in 2009
but, after 67 years, only disclosed its profits for the
first time last month (worldwide net profit £2.2bn
in the year to 31 August 2009). In these three
extracts from the book, Stenebo gives his view of
Ikea’s UK business dealings, Ikea’s 84-year-old
founder and the seductive layout of Ikea’s stores.
ON IKEA IN THE UK
“DURING these years [the 1990s] up until
2000, Ikea’s British subsidiary showed a
profit which in percentage points surpassed
the cost level of many sister-companies.
Swedish legislation regarding company
secrets unfortunately prohibits me from
quoting the exact figures, but let me give a
fictitious example by comparison. Say, the
Hennings company runs ten textile stores
and in all has a turnover of SEK1bn per year
(£90m). The turnover of SEK1bn corre-
sponds to 100 per cent. The company’s prof-
its after having paid the purchase of all
goods and materials are, say, 50 per cent.
From the remaining 50 per cent it must
cover all the costs of running the company
and make a sufficient profit. The total cost
of running Hennings corresponds to 40 per
cent of turnover. Thus Hennings makes a
profit 10 per cent (turnover less purchases
less running costs), which is a fine result for
any company. Now imagine a case, as with
Ikea UK Ltd, where profits are actually high-
er than the cost of running the entire com-
pany! Very few retailers like that exist
anywhere in the Western world.
Obviously such profit levels cannot be
healthy for a subsidiary in the long run, as
it amounts to ruthless exploitation of the
Johan Stenebo was customer. Only someone who shopped or
PA to Ikea’s founder worked in the British stores at this time can
for three years and a really understand the immense pressure
key Ikea executive for both customers and co-workers were sub-
over twenty years jected to when far too many people crowd-
ed into a far too small space day in day out.
Picture: As a customer you could frequently go nei-
Micha Theiner ther forward nor backward in the store
/CITY A.M. aisles, but were forced further into the inte-
rior of the building like penned cattle. This
was a common state of affairs in the
Wallau store in Germany when I first start-
ed working for Ikea. But there it happened
one or two days a week. In the case of the
UK the crush soon became unbearable
throughout the week, and in many stores
during all opening hours. This was a totally
unique situation within the Ikea-world.
Nowhere else – neither before nor after –
has the customer experience been so
unbearable, for such a long period, as in
the British stores.”
ON IKEA’S FOUNDER, INGVAR KAMPRAD
“INGVAR has today no neo-Nazi or fascist
sympathies whatsoever. I have never even
heard vague allusions to this. Ingvar is
absolutely no anti-Semite. I would say the
contrary. He has told many anecdotes from
the early sixties when he helped Polish
Jews or Jewish groups in need of money or
support in other ways. He has a soft spot
for colleagues of this religion. Some of
them are among Ingvar’s favourites. Why
this is so I do not know, perhaps he wishes
to compensate for his earlier sins.
CITY A.M. READER OFFER | THE TRUTH ABOUT IKEA
Order THE TRUTH ABOUT IKEA (978-1906142759 RRP £12.99) for £9.99 free p&p
on order line 01903 828503 (tel), 01903 828623 (fax), or mailorders@lbsltd.co.uk
Business Feature
Ingvar grew up in an extremely authori-
tarian family of German origin. His pater-
nal grandmother was more than
pro-German, a matriarch who set the agen-
da in the Kamprad home. The fact that
Ingvar’s father Feodor was a confirmed
Nazi was, according to the now dead col-
league Leif Sjöö, known all around the dis-
trict. Beatings and indoctrination were
part of everyday life on their farm,
Elmtaryd, as in so many other homes dur-
ing the twenties and thirties. To be able to
escape from this emotional desert as a
child without lasting damage must have
been difficult. The fact that Ingvar, as
Sjöberg perhaps correctly points out, was a
Nazi, or in any case a fascist, at the end of
the fifties is decidedly bad. But my assess-
ment is that those acts of folly stopped, in
order to never return.”
ON IKEA’S PSYCHOLOGICAL SEDUCTION
“ONE of Ikea’s absolute competitive advan-
tages is the fantastic capability to in a sub-
tle way, almost unnoticeably, manoeuvre
your purchases, something usually called
purchasing process. This is done in a very
ingenious way and with the only purpose
to make you buy as much as possible. It
begins already as you come up the escala-
tor to the furniture display. Here you are
met by the open-your-wallet market and
bins with Ingvar’s bags [the distinctive
large, blue Ikea carrier bags] so that you
will have room for all the extremely cheap
products you without fail will pick up.
27
Then your stroll along the main route
begins, the grey path. You continually
find new tasteful room sets and interest-
ing products. Wherever you go it is all so
interesting and varied. To get lost is
almost impossible. Signs in the ceiling,
pedagogic plans and arrows on the floor
lead you on with a firm but gentle hand.
Your visit is going smoothly. Perhaps you
won’t even notice that no part of the grey
pathway has a straight stretch of more
than 10-15 metres (longer than that is
called “Autobahn” and is considered a seri-
ous mistake) before it is interrupted by a
bend, then a short straight stretch and
then a bend in the other direction. As you
turn your eyes you will without noticing
see new hot areas with new hot products.
You carry on like this throughout the
entire store: straight stretch, bend, short
straight, bend, straight stretch. You can-
not really tire as your eyes are inexorably
guided towards new destinations and
Ingvar’s bag will be exchanged for a trol-
ley in order to have room for all you have
picked up and in the end there you are at
the checkout with a full trolley. Consider
that this entire process, all your experi-
ences, the firm control over you strolling
through the department store happens so
subtly that you at no time manage to per-
ceive how you are
being influenced
to purchase deci-
sions other than
possibly subcon-
sciously.”
 Investment
28
Now is a good
time to get in
to America for
the long haul
The S&P 500 has rallied heavily, but it is still
worth buying American, says Daniel Knowles
A
CCORDING to the late Sir John
Templeton, investors should “buy
when there’s blood in the streets”.
The streets are not as bloody today
as they were two years ago, but the last
week has certainly been violent. Hints of a
sovereign debt crisis in Europe, policy
tightening in China, and the hangover
from the announcement of a renewed
quantitative easing policy have all
depressed a lot of investors, and the S&P
500 fell by 2.75 per cent over the last week.
Despite that, 66 per cent of S&P 500 com-
panies outperformed expectations in the
last quarter. Is now the moment to buy
American?
Certainly some people think so. Bill
Miller, chief investment officer at Legg
Mason, thinks that despite the rally over
the last year, American equities are still
drastically undervalued. As he put it:
“Stocks are cheap. They’ve gone down a lot
and they are probably going to do very
well”. Miller compares the current situa-
tion to 1974, when Warren Buffett
claimed that equities were so cheap that
he felt “like an oversexed guy in a harem”.
According to Miller, such is the pes-
simism still priced into the American
stock market that even if American com-
panies do not grow at all, the returns from
dividend yield alone would still outper-
form bonds. And he estimates that far
from not growing at all, the S&P 500 could
increase by around 15 per cent over the
next year as the economy picks up and
retail investor confidence returns.
Investing in US equities would seem very
THERE’S SCOPE
FOR GOLD TO
RISE FURTHER
MARTIN ARNOLD
SENIOR ANALYST, ETF SECURITIES
T
HE allure of gold is unmistakable in the
current economic environment. Its
attributes as a store of value have histor-
ically attracted investors during times of
financial and economic uncertainty, and as a
counter to inflation and sovereign risk.
While inflation still appears a long way off,
gold is being viewed as an alternative to paper
currency as central banks around the world
flood financial markets with cheap liquidity.
And it is not just the Federal Reserve. There is
CITYA.M. 18 NOVEMBER 2010
| Listed Products
wise indeed then.
BIG CASH RESERVES
Though others are less bullish, the mood
is still optimistic. Manoj Ladwa, senior
trader at ETX Capital, agrees that now
could be a good time for investors to buy
into America. He says that “the trend is
positive as we slowly grind our way out of
recession”, while this week’s price falls
offer an opportunity to get in cheap. As Time for a walk up – that in turn would flush the system benefit from a strengthening dollar, as
Ladwa points out, American firms have Wall Street? with cash, bolstering any rally. well as from rising share prices. With
built up impressive balance sheets, while Moreover, as Ladwa observes, the weak exchange-traded funds (ETFs), it is possi-
earnings are very strong. As uncertainty Picture: REX dollar should make American equities ble to hedge against currency risk or not.
recedes, firms may begin running those particularly appealing to British iShares for example offers ETFs linked to
balances down by paying higher dividends investors, since it offers the chance to the S&P 500 index hedged against the
ANALYSIS l Despite the trauma, markets look optimistic ANALYSIS l S&P market composite 10-year compound annual total return (including
reinvested dividends), data 1827 to 30 September 2010
80 % Extreme Optimism 22.5 %
20
NDR Crowd 17.5
Sentiment
70
15
12.5
60 10
7.5
5
50
2.5
0
Dec-31-2008 10year
-2.5
40 Extreme Pessimism total return (-1.4) %
-5 Dec-31-2009 10year
total return (-1.0) %
Source: Ned Davis Research -7.5 Source: Legg Mason Capital Management
1836 1852 1868 1884 1900 1916 1932 1948 1964 1980 1999
2000 2002 2004 2006 2008 2010
still the possibility that the Bank of Japan and
the Bank of England will increase their mone-
tary stimulus and a number of other devel-
oped economy central banks could follow.
The outlook for gold must also be viewed in
the context of a struggling global economy
that faces an overhang of consumer and
mortgage debt, high inventories of unsold
homes, high unemployment levels and govern-
ments that need to tighten public purse
strings to stabilise government debt. As a
fresh wave of sovereign risk threatens the
Eurozone, investors are looking for hard
assets to buffer portfolios against the grow-
ing risks of currency debasement and possible
government defaults. Government debt and
budget problems cannot be fixed overnight,
but instead take years to be resolved and
investor concerns are therefore unlikely to Gold will only get more expensive Picture: REUTERS
subside anytime soon.
It’s not just private investors that are diver- With gold still around 70 per cent below its ing government debt while trying to stimulate
sifying portfolios with gold. Even the official all-time highs in real terms, if current macro structurally weak domestic economies. To
sector is diversifying its foreign reserves hold- trends continue, there would seem to be sub- paraphrase George Bernard Shaw: if you have
ings into gold, with central banks turning net stantial scope for further appreciation. How to choose between trusting the natural stabili-
buyers of gold in the second quarter of 2009, high the gold price can go will be determined ty of gold or the natural stability of the hon-
driven mainly by the reserve-rich emerging by how well governments are able to manage esty and intelligence of the members of the
markets such as China, Russia and India. the dilemma of needing to control rapidly ris- government, vote for gold.
CITYA.M. 18 NOVEMBER 2010
pound, the euro, or not hedged at all. If
American share prices continue rising,
then eventually that might attract
investors away from bonds and com-
modities – which would help boost the
dollar. In that case, an unhedged ETF
would seem a particularly wise way to
invest.
Investors should perhaps be a little
cautious, however. Liz Sonders, of
Charles Schwab, argues that while the
American economy is looking strong,
American equities may be due further
correction. Sonders observes that confi-
dence is in fact especially strong right
now – and that “when sentiment
begins to show excess optimism, it
often sets the stage for disappoint-
ment.” Sonders is not convinced that
shares are especially expensive, but
with fears about Europe’s sovereign
debt persisting, the market may fall yet
further. In that case, it might be wise to
wait a little before investing with an
ETF.
But for investors willing to hold out
for the long run, now looks like a good
time to get in. The fallout from the
financial crisis cannot hobble the
American economy forever, and growth
must eventually return. When it does,
we might well see a new bull market in
American stocks. For investors who
missed out on the 2009 massacre, this
week’s bloody correction offers an
excellent opportunity to jump in for
the long term.
LISTED PRODUCT NEWS
BY JESSICA MEAD
Getting more exposure to Asia
DB X-TRACKERS LISTS FOUR NEW ETFS
Deutsche Bank’s ETF division db x-trackers
announced on Monday that it had listed four
ETFs in London that give access to key Asian
emerging markets. These swap-based ETFs
track the MSCI China, MSCI India, MSCI
Malaysia and MSCI Thailand total return
equity indexes. The all-in fees for the
Malaysia and Thailand ETFs are 0.5 per cent
while the China ETF costs 0.65 per cent and
the India ETF 0.75 per cent. Db x-trackers
says it is now the largest issuer of emerging
market ETFs on the London Stock Exchange
Picture: GETTY following these listings.
MAKING THE MOST
OUT OF COGNAC
COCKTAILS FOR THE PARTY
SEASON: P32
EasyJet is about to
take off
Picture: REX
DEBT WORRIES AID PRECIOUS METAL ETCS
Flows into precious metals exchange-traded
commodities (ETCs) accelerated to their
fastest rate in 13 weeks last week according
to data from ETF Securities as a result of
mounting speculation about an Irish bailout
and the G20 impasse. Diversified physical
precious metal basket ETCs have been the
most popular over the past month, attracting
$104m since mid-September. Physical palla-
dium ETCs saw $60m of inflows while $40m
went into physical platinum ETCs and $22m
into physical silver ETCs. In contrast, physical
gold ETCs saw $112m of outflows.
29
THE
TIPSTER
EASYJET IS STANDING
OUT AMONG AIRLINES
T
HE majority of European airlines are
staging something of a rebound after
the recent sell-off, yet EasyJet has
really stood out. It posted some decent
earnings news earlier in the week and
announced – as widely expected – the pay-
ment of its first dividend in 2012. Traders
have been using the opportunity to sell down
their holdings. The influence that any share-
holder can have on corporate actions may be
a cause for concern. But the company does
not seem like it is about to pause for breath
before re-testing the year-to-date highs. The
current IG Index price is 438.2p-441.1p.
Tullett Prebon’s shares have been ham-
mered since news broke that it was being
sued by rival BGC over data usage. It slid 12
per cent but has reached a level that may
make it worth a buy. The support from the
long-term trend lines around 350p-360p
and the 200-day moving average at 353p
could help Tullett back towards the 400p
level. Spread Co are offering a spread on
Tullett Prebon of 356.3p–357.6p.
The FTSE 100 hit its 23.60 per cent
Fibonacci retracement level yesterday when
it took its July low to this month’s high.
This is seen as a key support level and could
provide a buying opportunity considering
that the market is returning to strength –
possibly coinciding with an Ireland bailout.
Capital Spreads quotes 5,679.0-5,680.0 for
the FTSE 100 index.
With the gold price having taken a beat-
ing in the last five days, falling six per cent
from its high, the FTSE 100 gold mining
company Randgold Resources (RRS) might
be worth considering. WorldSpreads is
offering a 0.2 per cent spread.
After a big fall in October due to disap-
pointing drilling results, Soco International
has found some support around the £3
mark and now sits in the mid-£3 range.
Yesterday’s trading update could give fur-
ther impetus to a share price that has
wiped out all its gains from earlier in the
year. Capital CFDs quotes a price of
348.3p-349.4p for Soco’s shares.
The dollar has been climbing steadily
against the yen since the beginning of the
month. The economic data coming from the
US shows a recovery which is gathering
pace, this trend is unlikely to reverse in the
coming few days. Cantor Index offers a
spread of ¥83.13-¥83.15.
Palladium has seen a near 65 per cent
rise over the last year, outperforming the
current darling of the precious metal mar-
ket, gold. Palladium refiner Johnson
Matthey has suggested that he expects a
25 per cent rise since a production deficit
may be arising. Spreadex offers a March
contract of 655.6p-659.6p.
Donata Huggins
FREE RBS SEMINAR ON BRIC INVESTING
RBS is hosting a free seminar tonight at its
HQ in the City of London on the opportunities
for investing in the Bric countries (Brazil,
Russia, India and China). These have become
more popular for investors as the opportuni-
ties in developed markets have disappeared.
Investment expert David Stevenson will give
his outlook for these countries while RBS will
be looking at how to make the most of this
opportunity using listed products. The semi-
nar is from 5.30pm to 6.45pm and it will be
held at 250 Bishopsgate. To register go to
www.rbs.co.uk/markets.
 30 Markets & Investment CITYA.M. 18 NOVEMBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .309.00 –5.90 328.30 246.90 Compass . . . . . . . . . . . . . . . . . .529.50 –0.50 574.50 399.30 Kazakhmys . . . . . . . . . . . . . . . .1426.00 +5.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .367.70 –6.00 397.00 307.60
3i Infrastructure . . . . . . . . . . . . . 117.50 –0.90 118.50 97.00 Cookson . . . . . . . . . . . . . . . . . . .512.50 –0.50 616.00 364.80 Kesa Electricals . . . . . . . . . . . . .161.40 –0.60 172.40 98.45 Schroders . . . . . . . . . . . . . . . . .1578.00 +1.00 1670.00 1096.00
A.B. Foods . . . . . . . . . . . . . . . .1069.00 –3.00 1113.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1395.00 +28.00 1540.00 735.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .239.70 +3.00 255.00 196.50 Schroders N/V. . . . . . . . . . . . . .1254.00 +6.00 1330.00 912.50
Aberdeen Asset Man . . . . . . . . . .176.30 –0.90 191.60 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .558.50 +12.00 573.50 401.70 Ladbrokes . . . . . . . . . . . . . . . . .131.90* –0.60 164.60 120.00 Scot. & Sthrn Energy. . . . . . . . . 1148.00 +1.00 1206.00 1006.00
Admiral. . . . . . . . . . . . . . . . . . .1570.00 +5.00 1721.00 1003.00 Davis Service . . . . . . . . . . . . . . .400.00 –0.30 442.30 356.00 Lamprell . . . . . . . . . . . . . . . . . . .342.00 –10.30 393.90 157.30 Scottish Mortgage. . . . . . . . . . . .640.00 –9.00 684.00 475.00
Aegis . . . . . . . . . . . . . . . . . . . . .130.60 +2.70 137.30 103.10 Debenhams . . . . . . . . . . . . . . . . .69.40 –0.60 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .629.50 — 630.50 416.70
Afren . . . . . . . . . . . . . . . . . . . . .124.60 –1.30 135.90 77.00 Derwent London . . . . . . . . . . . .1463.00 +28.00 1633.00 1183.00 Land Securities . . . . . . . . . . . . . .668.50 –4.50 726.00 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .298.00 +1.50 389.30 244.00
African Barr Gold . . . . . . . . . . . .539.50 –11.50 685.00 520.50 Dexion Absolute . . . . . . . . . . . . .138.20 +1.10 148.00 131.20 Legal & General . . . . . . . . . . . . . .97.30 +0.85 107.50 69.05 Serco . . . . . . . . . . . . . . . . . . . . .560.00 –1.50 656.50 491.20
Aggreko . . . . . . . . . . . . . . . . . .1505.00 +3.00 1698.00 727.50 Diageo . . . . . . . . . . . . . . . . . . . 1165.00 +6.00 1240.00 988.00 Lloyds Banking Gp . . . . . . . . . . . .66.40 –0.20 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1433.00 –3.00 1468.00 981.50
Alliance Trust . . . . . . . . . . . . . . .347.40 –3.50 363.00 292.80 Dixons Retail . . . . . . . . . . . . . . . .25.61 +0.23 39.50 23.07 Logica . . . . . . . . . . . . . . . . . . . .122.50 –0.40 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .435.90 +1.00 465.00 348.00
AMEC . . . . . . . . . . . . . . . . . . . . 1126.00 +10.00 1144.00 728.00 Domino’s Pizza . . . . . . . . . . . . . .515.00 –8.00 535.50 278.20 London Stk Exchange . . . . . . . . .717.00 –16.50 884.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1513.00 +3.00 1534.00 1117.00
Amlin . . . . . . . . . . . . . . . . . . . . .391.50 –7.90 437.60 357.30 Drax . . . . . . . . . . . . . . . . . . . . . .370.60 +4.80 464.80 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1767.00 +8.00 2198.00 1344.00 SIG . . . . . . . . . . . . . . . . . . . . . . . 112.90 –5.10 142.10 89.55
Anglo American . . . . . . . . . . . .2896.00 +9.50 3069.00 2210.00 Dunelm . . . . . . . . . . . . . . . . . . . .494.50 –1.90 521.00 319.40 Man . . . . . . . . . . . . . . . . . . . . . .280.30 –0.60 370.70 199.60 Smith & Nephew . . . . . . . . . . . . .587.50 +6.50 700.50 532.00
Antofagasta . . . . . . . . . . . . . . .1365.00 +6.00 1482.00 755.50 Easyjet . . . . . . . . . . . . . . . . . . . .443.80 –5.50 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .384.20 –11.80 431.40 321.90 Smith(Ds) . . . . . . . . . . . . . . . . . .181.10 +2.50 185.90 103.00
Aquarius Platinum . . . . . . . . . . .347.90 –6.30 490.00 211.50 Edinburgh Inv Tst . . . . . . . . . . . .436.20 –4.80 466.80 345.50 Meggitt . . . . . . . . . . . . . . . . . . . .316.00 –1.90 336.70 234.50 Smiths . . . . . . . . . . . . . . . . . . . 1132.00* –10.00 1297.00 930.00
ARM Holdings . . . . . . . . . . . . . . .360.60 +8.30 419.50 150.60 Electrocomponents . . . . . . . . . . .262.00 +1.40 266.60 159.50 Melrose . . . . . . . . . . . . . . . . . . .274.90 –3.10 304.90 160.00 SOCO Intl . . . . . . . . . . . . . . . . . .345.80 –2.20 510.00 287.40
Ashmore . . . . . . . . . . . . . . . . . . .354.40* +2.40 400.50 215.00 EnQuest . . . . . . . . . . . . . . . . . . .128.60 –0.30 138.50 87.35 Mercantile IT . . . . . . . . . . . . . . . .988.50 –10.00 1029.00 822.50 Spectris . . . . . . . . . . . . . . . . . . 1189.00 +8.00 1234.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3037.50 +9.50 3389.50 2680.50 Essar Energy . . . . . . . . . . . . . . .507.00 +2.00 566.50 358.50 Michael Page Intl. . . . . . . . . . . . .473.00 –6.50 507.50 326.00
Atkins(Ws) . . . . . . . . . . . . . . . . .727.00 –2.00 801.00 549.50 Eurasian Nat Res . . . . . . . . . . . .905.00 –14.50 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .331.00 +4.00 550.00 272.20 Spirax-Sarco Eng . . . . . . . . . . .1730.00 +6.00 1888.00 1060.00
Autonomy Corp . . . . . . . . . . . .1410.00 +12.00 2012.00 1319.00 Euromoney Inst Inv . . . . . . . . . . .674.50 –2.50 685.00 383.00 Millen & Copthorne . . . . . . . . . . .521.50 +8.00 585.00 329.20 Spirent Comms . . . . . . . . . . . . . .148.00 +0.80 158.30 90.45
Aveva . . . . . . . . . . . . . . . . . . . .1502.00 +32.00 1572.00 930.00 Experian . . . . . . . . . . . . . . . . . . .748.00 +44.50 763.50 559.00 Misys . . . . . . . . . . . . . . . . . . . . .291.00 +1.20 300.00 196.60 Sports Direct Intl . . . . . . . . . . . . .128.40 +0.20 154.30 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .397.00* +1.10 428.70 290.20 Ferrexpo . . . . . . . . . . . . . . . . . . .373.60 +12.60 401.60 169.00 Mitchells & Butlers . . . . . . . . . . .337.60 –3.10 351.60 242.50 SSL Intl . . . . . . . . . . . . . . . . . . . 1163.00 — 1190.00 659.50
Babcock International . . . . . . . . .555.00 –12.00 645.50 489.00 FirstGroup . . . . . . . . . . . . . . . . .377.50 +0.20 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .203.80 +3.80 248.60 187.60 St James’s Place . . . . . . . . . . . . .252.10 +4.00 298.00 203.40
BAE Systems . . . . . . . . . . . . . . .347.80* +2.60 389.90 288.10 Foreign & Col Inv Tst. . . . . . . . . .289.80 +1.80 300.00 250.00 Mondi . . . . . . . . . . . . . . . . . . . . .505.50 +13.30 562.00 304.70 Stagecoach. . . . . . . . . . . . . . . . .204.00 +0.50 226.10 144.10
Balfour Beatty . . . . . . . . . . . . . . .278.30* –0.40 304.80 228.60 Fresnillo . . . . . . . . . . . . . . . . . .1346.00 –15.00 1480.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .333.10 –1.90 349.70 265.00 Standard Chartered . . . . . . . . . .1815.00 –3.00 1975.00 1316.50
Barclays . . . . . . . . . . . . . . . . . . .274.25 +0.45 394.25 253.40 G4S . . . . . . . . . . . . . . . . . . . . . .248.90 –0.60 285.70 238.70 Morrison Wm . . . . . . . . . . . . . . .276.10 +0.10 307.10 255.00 Standard Life . . . . . . . . . . . . . . .222.00* +1.90 238.00 170.00
Barratt Development . . . . . . . . . . .74.75 +1.20 149.90 72.15 Genesis Emerging Mkts Fd . . . . .513.00 –1.00 542.50 383.00 Murray Intl Tst . . . . . . . . . . . . . . .892.00 –2.00 938.50 720.00 SuperGrp . . . . . . . . . . . . . . . . .1449.00 –1.00 1465.00 499.00
BBA Aviation . . . . . . . . . . . . . . .196.00 +1.10 220.00 145.90 GKN . . . . . . . . . . . . . . . . . . . . . .185.80 +4.20 188.40 100.40 National Express. . . . . . . . . . . . .237.10 –0.80 261.30 164.80 TalkTalk . . . . . . . . . . . . . . . . . . .150.20 –2.80 154.10 106.60
Berkeley . . . . . . . . . . . . . . . . . . .790.00 –5.00 917.50 735.00 GlaxoSmithKline . . . . . . . . . . . .1243.00* +29.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .584.50 +2.50 607.65 474.80 Talvivaara Mining . . . . . . . . . . . .529.00 +5.00 597.00 341.40
BG . . . . . . . . . . . . . . . . . . . . . .1219.00 +10.50 1302.50 966.90 Great Portland Estates . . . . . . . .330.00 –4.30 368.60 265.40 Next . . . . . . . . . . . . . . . . . . . . .2078.00 –30.00 2361.00 1816.00 Tate & Lyle . . . . . . . . . . . . . . . . .525.00 +12.00 534.50 388.00
BHP Billiton . . . . . . . . . . . . . . .2335.50 +17.50 2500.00 1678.00 Greene King . . . . . . . . . . . . . . . .437.70 –1.60 484.00 372.50 Northumbrian Water . . . . . . . . . .351.00 +0.90 364.00 239.90
BlackRock Mining . . . . . . . . . . . .710.00 +2.00 737.50 490.00 Halfords . . . . . . . . . . . . . . . . . . . 411.50 +3.00 562.50 370.10 Ocado Grp . . . . . . . . . . . . . . . . .136.00 +3.80 169.00 120.90 Taylor Wimpey . . . . . . . . . . . . . . .24.93 +0.11 46.34 22.12
BlueBay . . . . . . . . . . . . . . . . . . .481.50* — 495.00 251.00 Halma . . . . . . . . . . . . . . . . . . . . .327.90 +2.00 345.50 221.80 Old Mutual . . . . . . . . . . . . . . . . .126.50* +0.10 146.90 95.30 Telecity . . . . . . . . . . . . . . . . . . . .444.00 –9.30 546.00 323.50
Bluecrest Allblue GBP . . . . . . . . .174.00 — 174.50 151.60 Hammerson . . . . . . . . . . . . . . . .408.20 –0.30 455.70 332.20 Partygaming . . . . . . . . . . . . . . . .220.00 +1.10 339.70 205.80 Templeton Emrg Mkts . . . . . . . . .645.00 +2.50 688.00 470.00
Booker . . . . . . . . . . . . . . . . . . . . .55.50* +0.70 56.00 37.50 Hargreaves Lansdown . . . . . . . .472.00 –7.40 502.50 259.40 Pearson . . . . . . . . . . . . . . . . . . .936.00 +6.00 1069.00 812.00 Tesco . . . . . . . . . . . . . . . . . . . . .419.80* –0.40 454.90 368.40
BP . . . . . . . . . . . . . . . . . . . . . . .435.60 –0.05 658.20 296.00 Hays . . . . . . . . . . . . . . . . . . . . . .107.20* –0.90 125.30 82.50 Pennon . . . . . . . . . . . . . . . . . . . .631.00 +2.00 644.00 462.90 Thomas Cook . . . . . . . . . . . . . . .186.00 +1.10 277.20 167.50
Brit Insurance . . . . . . . . . . . . . .1039.00 –2.00 1052.00 709.00 Henderson . . . . . . . . . . . . . . . . .125.60 –3.30 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .350.40* –6.20 520.00 335.90 Travis Perkins . . . . . . . . . . . . . . .830.00 –9.50 915.00 647.50
British Airways . . . . . . . . . . . . . .261.40 +1.90 290.00 180.20 Heritage Oil. . . . . . . . . . . . . . . . .375.80 –13.50 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1483.00 –3.00 1545.00 900.00 TUI Travel . . . . . . . . . . . . . . . . . .199.00 +0.30 313.90 189.20
British Amer. Tob . . . . . . . . . . .2363.00 –19.50 2490.50 1832.00 Hikma Pharma . . . . . . . . . . . . . .753.00 +2.50 813.00 480.00 Petropavlovsk . . . . . . . . . . . . . .1022.00 +24.00 1370.00 834.00 Tullett Prebon . . . . . . . . . . . . . . .355.40* +7.40 427.00 261.20
British Empire Tst . . . . . . . . . . . .477.40 –2.60 497.00 338.50 Hiscox . . . . . . . . . . . . . . . . . . . .363.10 +2.80 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .670.00 –1.00 775.00 550.50 Tullow Oil . . . . . . . . . . . . . . . . . 1195.00 –1.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .488.70 –1.00 525.00 416.00 Hochschild Mining . . . . . . . . . . .553.50 +6.00 580.50 220.00 Premier Farnell . . . . . . . . . . . . . .293.40 –0.60 299.20 150.80 UK Commercial Prop. . . . . . . . . . .75.00* –1.75 84.90 71.00
Britvic. . . . . . . . . . . . . . . . . . . . .482.00 –2.40 518.00 360.70 Home Retail . . . . . . . . . . . . . . . .209.90* –2.60 325.60 201.70 Premier Oil . . . . . . . . . . . . . . . .1865.00 +34.00 2032.00 984.00 Ultra Electronics . . . . . . . . . . . .1546.00 –39.00 1903.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .277.80 –2.20 308.00 204.80 Homeserve . . . . . . . . . . . . . . . . .430.10 +0.50 502.00 405.40 Provident Financial . . . . . . . . . . .743.50* +5.50 983.50 725.50 Unilever . . . . . . . . . . . . . . . . . .1848.00* +13.00 2024.00 1662.00
BSkyB . . . . . . . . . . . . . . . . . . . .724.00 — 737.00 521.00 HSBC Hldgs . . . . . . . . . . . . . . . .660.50 –4.50 755.30 595.20 Prudential . . . . . . . . . . . . . . . . . .612.50 +4.50 665.00 475.70
BT . . . . . . . . . . . . . . . . . . . . . . .165.10 — 170.10 108.40 Hunting . . . . . . . . . . . . . . . . . . .621.50* –1.00 663.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .388.00 +1.90 406.80 231.70 United Utilities . . . . . . . . . . . . . .623.00 +3.50 634.50 467.40
BTG . . . . . . . . . . . . . . . . . . . . . .246.30 –0.80 270.80 150.00 ICAP . . . . . . . . . . . . . . . . . . . . . .472.00 +6.10 501.50 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . . .99.00 +1.30 179.10 96.00 Utd Business Media . . . . . . . . . .640.00 –8.50 692.00 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .717.50* –1.50 784.50 614.00 IG . . . . . . . . . . . . . . . . . . . . . . . .491.50 –2.60 560.00 312.60 Randgold Resources. . . . . . . . .5970.00 +40.00 6755.00 4126.00 Vedanta Resources . . . . . . . . . .2179.00 –15.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . .1008.00 +4.00 1065.00 555.50 Imagination Tech Gp . . . . . . . . . .303.50 –21.50 445.00 200.00 Reckitt Benckiser . . . . . . . . . . .3471.00 –4.00 3667.00 3019.00 Victrex . . . . . . . . . . . . . . . . . . .1200.00 +15.00 1355.00 753.00
Cable & Wire Comms . . . . . . . . . .48.14* –0.86 150.00 46.51 IMI . . . . . . . . . . . . . . . . . . . . . . .826.00 +2.50 855.50 483.10 Reed Elsevier . . . . . . . . . . . . . . .536.00 +6.00 566.00 454.60 Vodafone . . . . . . . . . . . . . . . . . .166.95 –3.50 179.90 126.50
Cable & Wire Wwide . . . . . . . . . . .66.90 –2.00 94.80 60.05 Imperial Tobacco. . . . . . . . . . . .1971.00 –17.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .77.10 –2.30 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1689.00 +29.00 1720.00 660.00
Cairn Energy. . . . . . . . . . . . . . . .366.00 –4.70 497.60 306.80 Inchcape. . . . . . . . . . . . . . . . . . .331.20 –3.30 358.00 235.00 Renishaw . . . . . . . . . . . . . . . . . 1157.00 –1.00 1250.00 479.00 Wellstream Hldgs . . . . . . . . . . . .735.00 –5.00 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1751.00 –14.00 1833.00 1496.00 Informa . . . . . . . . . . . . . . . . . . . .414.30 –3.10 450.50 263.30 Rentokil Initial . . . . . . . . . . . . . . . .95.00 –0.70 140.20 89.40 WH Smith . . . . . . . . . . . . . . . . . .465.00 +11.20 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .722.00 –13.00 829.50 693.00 Inmarsat . . . . . . . . . . . . . . . . . . .673.50 +1.00 831.00 603.50 Resolution . . . . . . . . . . . . . . . . .240.00 –2.50 280.50 220.10 Whitbread . . . . . . . . . . . . . . . . .1691.00* — 1807.00 1260.00
Capital & Counties . . . . . . . . . . .145.50 –2.50 159.00 99.60 Intercontl Hotels . . . . . . . . . . . . 1102.00 +21.00 1244.00 803.00 Rexam . . . . . . . . . . . . . . . . . . . .316.00 –2.20 348.80 271.40 William Hill . . . . . . . . . . . . . . . . .159.70* +0.30 217.80 157.20
Capital Shopping Centres . . . . . .377.70 +5.10 523.50 300.10 Intermediate Capital . . . . . . . . . .333.80 +0.90 352.80 233.50 Rightmove . . . . . . . . . . . . . . . . .759.00 +4.00 830.00 456.90 Witan Inv Tst . . . . . . . . . . . . . . . .475.00 +2.40 492.00 397.30
Carillion . . . . . . . . . . . . . . . . . . .341.20 — 361.90 272.00 Intertek . . . . . . . . . . . . . . . . . . .1950.00* +19.00 1964.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .4147.50 +27.50 4477.50 2751.00
Carnival . . . . . . . . . . . . . . . . . .2616.00 –15.00 2937.00 1963.00 Intl Personal Fin . . . . . . . . . . . . .306.20 –0.90 340.90 181.40 RIT Capital Partners . . . . . . . . . 1173.00 +42.00 1215.00 940.00 Wolseley . . . . . . . . . . . . . . . . . .1742.00 +35.00 1837.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .345.70 –5.80 394.60 303.20 Intl Power . . . . . . . . . . . . . . . . . .419.50 +1.60 438.10 268.70 Rolls Royce . . . . . . . . . . . . . . . .599.50* +10.50 661.50 466.10 Wood Group (John). . . . . . . . . . .466.50 –20.40 492.60 279.60
Centamin Egypt . . . . . . . . . . . . .180.00 +8.50 202.80 103.50 Invensys . . . . . . . . . . . . . . . . . . .336.10* +5.70 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1658.00 –16.00 1906.00 1101.00 WPP . . . . . . . . . . . . . . . . . . . . . .729.50 +8.00 758.50 562.50
Centrica . . . . . . . . . . . . . . . . . . .332.20* –1.20 347.00 248.10 Investec . . . . . . . . . . . . . . . . . . .500.00 +2.20 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .41.73 +0.87 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1312.00 +0.50 1462.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .694.00 –1.50 855.50 563.50 ITV . . . . . . . . . . . . . . . . . . . . . . . .68.50 +1.40 73.00 46.77 Royal Dutch Shell A . . . . . . . . .2019.00* +12.50 2106.50 1621.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2860.00 +59.00 3711.00 2551.00 Jardine Lloyd Thompson. . . . . . .578.50 –1.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1988.50* +19.50 2071.00 1550.00
Close Bros . . . . . . . . . . . . . . . . .801.50* +8.50 834.00 657.00 Johnson Matthey . . . . . . . . . . .1843.00 +14.00 1999.00 1435.00 RSA Insurance . . . . . . . . . . . . . .125.40* –0.80 137.40 114.10 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .203.80 –0.70 278.60 199.20 JPMorgan Emerg Mkts . . . . . . . .588.50 –3.50 618.00 448.00 SABMiller . . . . . . . . . . . . . . . . .2052.00 +37.50 2103.00 1638.00
COLT Group . . . . . . . . . . . . . . . . 119.80 +0.30 144.20 107.70 Jupiter Fnd Mgmt . . . . . . . . . . . .283.00 –3.50 310.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .263.50 +0.50 286.80 208.20 www.interactivedata.com

FTSE 100 gains on the back Wall St flat after

of Experian and financials late banks sell off
to explore solutions to the crisis. those looking for work but not claim- day and were still up one per cent in

THELONDON Drugmaker GlaxoSmithKline

added 2.4 per cent, following backing
ing benefits, also fell in the three
months to September, official data THENEW YORK the past two weeks before
Wednesday’s selloff.

REPORT REPORT
from a US advisory panel for its lupus showed yesterday. The KBW bank index fell 1.4 per
drug Benlysta, which is seen as a Minutes from the Bank of cent. Regional bank KeyCorp slid 3.8
potential blockbuster. England’s November meeting per cent to $7.68 after Credit Suisse
An expert advisory committee of revealed policymakers split three downgraded its shares.

T
HE top share index closed high- the Food and Drug Administration ways for the second month running, Indexes also suffered from the con-

I
er yesterday, led up by Experian voted by 13 to 2 in favour of approv- with one member voting for more INVESTORS were unable to tinued uncertainty of Ireland’s finan-
after robust first-half results, ing Benlysta for use in the US, while monetary stimulus, another advocat- recoup recent losses in the mar- cial crisis, which contributed to Wall
while strength was seen among also recommending restrictions and ing a rate hike and the others freez- ket yesterday, suggesting the Street’s drop of nearly two per cent on
banks which have been weighed tough scrutiny post-launch. ing policy. struggles recently experienced by Tuesday.
down by concerns over Europe’s debt The US regulator is not required to The wireless telecommunications stocks are far from over. The Dow Jones industrial average
problems. follow the recommendation of its sector was dragged down by market A late-day selloff did not inspire was off 15.62 points, or 0.14 per cent,
Experian rose 6.3 per cent after the arthritis advisory committee, but heavyweight Vodafone, off 2.1 per confidence. Volume was light and to 11,007.88. The Standard & Poor’s
credit information group hiked its analysts raised their assessments cent after trading ex-dividend and as early buying faded, as financials led 500 Index edged up 0.25 point, or 0.02
interim dividend and said it would that it would make it to market, gen- broker Evolution Securities cut its the market downward. The S&P 500 is per cent, at 1,178.59. The Nasdaq
look at ways of returning cash to erating annual sales for GSK estimat- rating to “reduce” in the wake of down nearly four per cent since 5 Composite Index added 6.17 points, or
shareholders after a stronger-than- ed potentially to reach £1bn by 2015. recent results. November after rallying nearly 13 per 0.25 per cent, to 2,476.01.
expected first half. With around 5m sufferers world- “Despite slightly better than cent in September and October. Volume was light and some of the
At the close the FTSE 100 was 10.66 wide, lupus has proved difficult to expected results, we see some poten- “I think the market is in a deterio- day’s quietness was due to investors
points, or 0.2 per cent, higher at conquer: doctors rely on sympto- tially large macroeconomic stum- ration trend. It’s worrisome at this awaiting the pricing of General
5,692.56, after recording its biggest matic treatments, including anti- bling blocks and still too little point, considering that we had a sell- Motors’ initial public offering after
daily fall since 11 August on Tuesday. inflammatory drugs, steroids, evidence that Vodafone is sufficient- off yesterday with pretty big volume the market's close, said Nick Kalivas,
“People are sitting on the fence. We antimalarials and immunosuppres- ly differentiated from peers to and poor advance-decline numbers,” senior equity index analyst at MF
are in a kind of limbo period while sants, which have a range of side- deserve a premium rating,” the said Frank Gretz, market analyst and Global in Chicago.
waiting to see how Ireland pans out,” effects. Evolution Securities said. technician at the Shields & Co broker- The automaker set the terms for a
Will Hedden, a trader at IG Index, Several attempts to introduce age in New York. landmark IPO that could be the
said. drugs to treat the disease, which pri- ANALYSIS l FTSE “The market is certainly vulnera- largest in US history, raising up to
“Companies are moving for their marily affects women of child-bear- 5,692.56 ble, and I think it is in fact headed for $22.7bn. GM said after the closing bell
6,000 17 Nov
own reasons. There has been a little ing age, have failed to pass trials. a correction.” the stock was priced at $33 a share.
bit of a rally in banking stocks which Energy stocks ticked higher, recov- 5,800 Financials sagged after the Federal “There’s a feeling a lot of money
have been falling because of exposure ering support after recent falls on Reserve said it will evaluate the abili- has been sucked out of the market to
to Ireland but it’s all on a bit of a the back of fears of interest rate hikes 5,600 ty of 19 large financial institutions to go pay for that. Once that gets out of
knife edge,” he said. in China, the world’s largest com- withstand losses in “adverse” eco- the way, that theory’s going to be put
5,400
Royal Bank of Scotland, which has modities consumer. nomic scenarios. to the test,” said Kalivas. Retailers kept
fallen recently on fears over its expo- In terms of UK macro data, unem- 5,200 The announcement accompanied a floor under the market as discount
sure to Irish sovereign debt, rose 2.1 ployment benefit claimants fell guidance on potential dividend chain Target Corp rose 3.9 per cent to
per cent as investors awaited the out- unexpectedly by 3,700 last month 5,000 increases, first reported on 4 $55.62 after it forecast its best same-
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
come of an EU/IMF mission to Dublin and a wider measure, which includes November. Banks rallied sharply that store sales in three years.
 City Focus
Five fast ways to
jazz up your CV
A few simple tips will
help make sure you
impress any potential
employers, writes
Jeremy Hazlehurst
1. USE NUMBERS
They quantify your achievements and
people remember them, says Richard
Maun in his book Job Hunting 3.0.
Saying that you “saved money” or
“improved the business” are meaning-
less. Saying that you “saved the compa-
ny £200,000 a year” or that you
“increased sales by 20 per cent” will
grab the interviewer’s attention and
make him curious about the story
behind the number, giving you a
chance to sell yourself.
2. GET TO THE POINT
Tear the first page of your CV in half.
Does the top half leap out on its own?
Think of it like the front page of a news-
paper. The reader needs to have seen
your personal profile and your first two
achievements by half-way down the
Business ethics: do the right thing
ROGER STEARE
CORPORATE PHILOSOPHER IN RESIDENCE
I
n my work as a professional
“Corporate Philosopher” I work with a
number of global banks and other cor-
porations, the public sector and gov-
ernment agencies in helping leaders and
employees ask and answer the question,
“Are we doing the right thing?”
The challenges we face today are
immense. We are all concerned about the
banking system and the economy, but
many of us are also concerned about
social cohesion, environmental break-
down and why we never seem to have
enough money or possessions.
The research into the economics of hap-
piness finds that our levels of well-being in
the West are no higher than they were 2
generations ago, in the 1950s. Yet our
economies are up to 16 times bigger than
they were then (3 per cent GDP growth
doubles the economy every 20 years). So
we are consuming up to 16 times the eco-
nomic resources our grandparents were
consuming, with very little to show for it
other than overdrafts, mortgages, failed
relationships and the latest shiny gadget
in our pocket.
So what has this got to do with busi-
31
| Careers
first page. Also make sure your CV is no
more than two pages long, and always
put your name at the top and bottom of
each page, just in case they get separat-
ed.
3. AVOID CLICHES, INCLUDE DETAILS
Nobody ever said they were a bad com-
municator, lazy or lacked passion. Prove
that you have the qualities you want to
highlight rather than just stating that
you do. Tell the reader what you have
done, and he will infer the qualities
that you want to prove you have. Things
Numbers make sure
you are remembered 5. WORK ON YOUR PROFILE
It is the first thing that the interviewer
you have worked in. Do not use “I”, use
the third-person as this makes it easier
to read. And above all don’t forget to be
like “entrepreneurial skills” are Picture: GETTY reads. So be relevant in your profile, and interesting – if there is a juicy detail
unquantifiable. If you set up a business, pin yourself to the job that was adver- that will make them remember you
say so. Otherwise you are not an entre- tised by using words that already appear (“the one who did the Goldman Sachs
preneur, however much you might like in the advert. Include industry-specific deal”) then you will have improved your
to be one keywords, brand names and countries chances.
4. THINK ABOUT PRESENTATION
Think about presentation. Use a sans-
serif font, with no smaller than 11-point
type – any smaller and it looks like you Thinking about your future career?
couldn’t edit your CV. Make sure there’s Take a big step forward with a professionally
enough white space to make it look nice. accredited master’s degree from Glasgow
Avoid crazy designs or too much colour.
Simple is best. Also, if possible send your
CV in paper form. It is harder to lose
Caledonian’s Graduate University College.
than an email, and good quality paper To get the full picture come and have coffee
makes a good impression. As Maun says: and cake with our academics at the GCU London
“People do judge books by their covers,
otherwise they’d all have plain brown campervan in Spitalfields Market on the
ones.” following dates:
14th Nov – Tourism, Fashion and Luxury
21st Nov – Risk Management and
Construction Management
28th Nov – Banking and Finance,
Tourism and Fashion
and Luxury
ness? Well the simple answer is that we
cannot separate business from society.
Business is not some cool console game
that we play at work. Everything we do at
work affects other people and the world
we inhabit. But our financial and econom-
ic system doesn’t value or measure many
*UµT
UJNF
positive outcomes like personal well-
being; and we don’t measure many nega-
UP
NBLF
B
tives like the social impact of CJH
DIBOHF
UP
ZPVS
unemployment or the environmental
damage caused by species extinctions.
The other challenge with business is
DBSFFS
that the modern corporation is a fairly
dysfunctional form of human association.
In the UK we live in a free-market, social
democracy. But the modern corporation is
a totalitarian, feudal plutocracy. That is
why the average quoted business survives
for less than 30 years.
Businesses thrive and sustain them-
selves by achieving economic purpose, but
they can only do this in a sustained way by
creating a human community of belong- Located in the heart of the City,
ing, where people care about the conse- GCU London is a leading-edge
quences of what they do for everyone who learning environment with excellent
is affected. Doing the right thing in busi-
ness is no different from doing the right industry links and partnerships. January
thing in life. It’s not complex. It’s simple. start
But it’s also very hard.
Roger Steare is Professor of Organisational available
Ethics at Cass Business School. Try his free online
Moral DNA Profile and buy his book at To find out more:
www.ethicability.org call 0203 369 3000
email enquiries@gculondon.ac.uk
or visit www.gculondon.ac.uk
GCU London is a graduate college of Glasgow Caledonian University,
registered Scottish charity, number SC021474
 Lifestyle
32 CITYA.M. 18 NOVEMBER 2010

| Food& Drink

TIM
BADHAM
GOING OUT

Glamour is
going west
for the winter

In praise of French spirit Eighty Six brings glamour to the Fulham Road.

Don’t wait until after where other famous brands include Remy everything from those dark, wintry notes OLLOWING the slew of recent East

dinner to make the

most of cognac, says
Martin, Martell and Hennessy. Ugni Blanc
grapes are harvested into white wine,
which is then distilled repeatedly, aged in
oak barrels and eventually blended at
great complexity into cognacs in which
the age of the youngest component of the
Timothy Barber blend determines the variety.
VERY SPECIAL
like chocolate, orange zest and nutmeg to
much lighter, fruitier tones.”
At a time when things old-fashioned
and full of provenance and history are
quite the fashionable thing, there seems
something rather satisfying in co-opting
the drink of snooty old gentlemen’s clubs
into cool cocktails. Alternatively take the
view of the US hip hop community, which
F London launches, attention is shifting
to the West where things are hotting
up. After the summer additions of the
Brompton Club and Beaufort House, the most
exciting new club for some time is heading to
Chelsea in the shape of Guy Pelly’s new offer-
ing, Public on the King’s Road. Public (think
school, not toilet) should shake up the
Chelsea club scene as Guy bring his pedigree

H
ERE’S a strange thing: the French
don’t like cognac. In fact, according
to Patrice Pinet, master blender for
Courvoisier, France imports more
Scottish whisky than it makes cognac.
Young people in France in particular, he
laments, have given up on the drink, associ-
ating it with a naff, fusty past instead of a
cool, cocktail-centric present.
Actually cognac has an august past – it
was a favourite drink of Napoleon, for a
start, and the techniques of its produc-
tion go back 300 years. But even here
cognac can suffer by its association with
a kind of post-prandial tradition observed
by old duffers bearing huge bulb glasses
in one hand and cigars in the other.
That’s a shame, says Richard Wynne,
owner of hip East London cocktail joint
Callooh Callay, since cognac has a lot
more to offer.
“A fine cognac is just as good and versa-
tile in cocktails as any aged whisky or rum,
and the flavours can be very comparable,”
he says. “The perception of it is still people
having brandy as the Titanic goes down,
but people who drink cognac like that
don’t know what they’re drinking or why.”
So what are they drinking? Cognac is
brandy, but made to exacted methods in
the Charente region of south west France,
TASTING NOTES
HIGH-END BOOZE FOR THE PARTY SEASON
APPLETON’S LUXURY RUM
Jamaican brand Appleton Estate
is known for some very fine
rums, but its latest trumps the
bunch. The notably-dark 30 Year
Old is about as expensive a rum
as you will find, and as rare –
only a few bottles exist. After
three decades in tropical barrels,
it’s been hand-blended for some-
thing very special.
£550 at Harrods. www.harrods.com
For instance, a “VS” marking on a bottle has embraced the drink wholeheartedly as (Mahiki, Whiskey Mist, Punch Bowl) and seri-
means simply “Very Special”, with the a tipple with suitable bling factor. As Busta ous connections to bear (he’s close chums
youngest brandy at least two years aged; Rhymes raps, “Give me some sh*t, you can with a certain newly-engaged prince, among
“VSOP” means “Very Special Old Pale” – give me the cribs, you can give me whatev- many others – wedding reception, anyone?).
four years aged – while “XO” stands for er, just pass the Courvoisier.” Carved out from an old antiques warehouse
“Extra Old”, requiring a decade in the cask Well, quite. The fact is, this winter the 10,000 Sq Ft space will have a New York
at the very least. cognac could just be the party season industrial style with high ceilings, raw brick-
“The longer it’s been aged the more sub- drink of choice – which is roughly what work, steel girders and solid copper bars. Fun
tlety it takes on,” says Wynne. “You get Busta was suggesting. comes in the form of a fancy dress room,
photobooth and smoking area featuring gold-
COGNAC COCKTAILS | WHAT TO HAVE fish pond and fairground fish. And of course,
there’ll be a VIP area too and plenty of room
to dance. It opens in two weeks it after a
£2m refit, with a second phase planned next
As a rule of thumb, the more aged and com- Sidecar mixes cognac with quantro and year.
plex the cognac, the more expensive it will lemon juice, while Callooh Callay’s Richard NYC seems to be de rigueur in West
be – which means you could be shelling out Wynne recommends adding in passion fruit London at the moment with Brenhan Magee’s
three figures for a bottle of XO. If that seems puree and ginger syrup for some extra exotic brand new and beautifully judged Manhattan
a bit extravagant, Courvoisier’s new VSOP edge. “Serve it over crushed ice and you’ve loft-style bar and restaurant Brasa on
expression, Exclusif, is both affordable got a really fruity drink with a hit of bitterness Fulham Road.
(£28.59 a bottle) and blended with cocktails in the passion fruit – perfectly refreshing for There are even two launches tonight.
and punch in mind. a winter’s evening,” says Wynne. Staying on the Fulham Road, Eighty Six
One of the simplest mixers for cognac is gin- For a to really warm the cockles, try this offers a buzzing cocktail bar on the ground
ger beer – served with ice, it makes for a Spiced Apple Warmer, as recommended by floor of an impressive Georgian townhouse. It
sweetly delicious aperitif. Add a slice of lime for the people at Courvoisier. Take two parts shares owners with Verbier hot spot Coco
a twist on the Dark ‘n Stormy rum cocktail. cognac, 0.3 parts allspice, 0.3 parts maple designers with Galvin La Chapelle. Meanwhile
For something more extravagant – and sat- syrup and 0.5 parts lemon juice and mix with No 92 at Notting Hill Brasserie also opens
Courvoisier VSOP isfyingly old school – the ultimate cognac apple juice in a saucepan. Heat it all up, then tonight (evidently street numbers are in
Exxlusif, above, is cocktail is the Sidecar, invented in Paris pour into a glass with a slice of lemon and add vogue) and promises delectable cocktails
designed for cocktails shortly after the end of World War One. A a sprinkle of cinnamon. from the pre-Victorian era to the present day,
and punch. all served from an art deco bar in a room of
quirky decadence. No 92’s from the same sta-
ble as the Ebury and The Running Horse,
which also has another new Notting Hill addi-
tion, the relaxed and thoroughly English pub
The Chesterfield on Chepstow Place.
Over in Kensington, even Roof Gardens are
THE SPIRIT OF SRI LANKA BLENDED WHISKY’S TOP TRUMP in on the opening act this week with their
Ceylon Arrack is a rather rare, Johnnie Walker’s Blue Label new Tanqueray Bar and Live Lounge with
handcrafted spirit from Sri range has ruled the blended early evening live music every weekend.
Lanka that’s made from the sap whisky roost forever and a day, Back on the King’s road, a reopened and
of coconut flowers, which are and it now has a new release rejuvenated Eight Over Eight (closed a year
hand collected by chaps who that’s the pick of the bunch. ago after a fire) completes the scene.
shimmy high up the trees to Simply called The John Walker, it Tim Badham is the founder of
grab them. The taste is pure, sits in a Baccarat crystal decanter, Innerplace, London’s leading providers
delicate and long, and it’s which comes in a hand-crafted of VIP entertainment, including film
newly available in the UK. case of Chinese pine – and tastes, premieres, fashion shows, launch par-
£27.50 at Harvey Nichols. we’re told, sensational. ties and members club access.
www.ceylonarrack.com £2,000 from Harrods. www.harrods.com ww.innerplace.co.uk.
CITYA.M. 18 NOVEMBER 2010
The world’s in peril...again
Andy McNab has
delivered another
ludicrous yarn. Good
luck putting it down
ZERO HOUR
BY ANDY MCNAB
Bantam £18.99
hhhhi
MORE AGGRESSIVELY masculine thriller-
writing is hard to come by – McNab’s Nick
Stone is the toughest of the tough (of
British men), and his partners in crime
operate in a world of violent political espi-
onage and the most blood-letting, explo-
sive of special ops.
With Zero Hour, the prolific McNab is
back with a story that takes in the triple
fireworks of British, Israeli and US forces –
and includes such real-life characters as
Ehud Olmert, the former Israeli prime
minister. The action begins with an Israeli
bombing of a Syrian nuclear installation
in September 2007.
Two big events are converging on Stone.
One is the bombing, which Syrian radar,
supposedly state-of-the-art, had failed to
pick up. Unknown to anyone but the
Israelis and the radar’s manufacturers,
the commercial, off-the-shelf microproces-
sors within it contained a remotely acces-
sible kill switch and now, guess what, a
terrorist group nearly have it in their
hands. To make matters worse, British
Intelligence has discovered that the same
switches are at the heart of every electron-
ic device in the UK and US arsenal.
The second event is that the beautiful
twenty-year old daughter of a Moldovan
businessman has gone missing from her
university and British intelligence will do
anything in its power to track her down.
But what is the connection between the
raid and the missing student? How has
she come to hold the key to Britain’s secu-
rity? It’s Nick Stone’s task to find out, so
just why is he not on “receive” when he’s
needed by Intelligence? A rampaging
book with ludicrous use of real-life
nations and wars, but with a pace and
scope that will keep you glued to the end.
Zoe Strimpel
EAT TWEET
BY MAUREEN EVANS
Workman, £12.99
hhhhi
“BEAT11EGWT foamy. Beat snowy+11/2
crmoftartar. Beat stiff + 11/2 sug. Fold+c
flr/t vanil. Fill tubepan. h@325F. Cool
well.” Contained in this single tweet is the
recipe for Angel Food Cake, one of 1,020
that the New York-based cook and Twitter
COSTA BOOK AWARDS | ANALYSIS
The Costa Book
Awards have gone
far off the beaten
track this year
S
ECOND in command to the Booker
Prize, the Costa Awards (formerly
the Whitbreads), still matter. They
still shift books on a large scale
genius Maureen Evans has put together in Andy McNab makes
“eat tweet”, a compilation of the recipes good use of explosive
she’s been broadcasting as @cookbook. international ops.
There are many advantages to the book
– not least that it’s light and small despite Picture: GETTY
containing the information of a whole
shelf’s worth. Another is the sheer curiosi-
ty of seeing how Evans boils down compli-
cated recipes and classics such as Julia
Child’s Beef Bourgignon into 140 charac-
ters. Classics abound, just boiled down to
their bare essentials.
As Frank Bruni, New York’s most
famous food critic, says in the Foreword:
“Let Nigella Lawson tell you how to ‘serve’
something. Maureen will tell you how to
‘srv’ it, losing nothing in the process but
two superfluous e’s.”
If the thought of all those abbreviations
and symbols scares you, fear not: the “get-
ting started” section includes a “chart of
symbols” – a comma, for example, means
“then”; it “groups actions in a step; e.g.
‘wash, chop spinach’ means wash then
chop spinach.” Then there’s Decoding and
Coding Recipes, too.
A brilliant little book, worth reading for
its ingenuity, even if the style of recipe-
deliverance doesn’t suit you. ZS
THE BIG SOCIETY:
THE ANATOMY OF THE
NEW POLITICS
BY JESSE NORMAN
University of Buckingham
Press, £10
hhhhi
IT’S BRAVE of any author in the modern
age to begin their work by stating that
there isn’t a Twitter summary for the text –
and the “winner” sticker still counts for some-
thing in the Waterstones customer’s con-
sciousness.
Lest anyone mistake them for the Bookers’
subservient echo, this year the prize will dis-
prove such an assertion – not one Booker
short-lister has made it to Costa’s list in a
rather major snub to the judges of the other
prize. Even Howard Jacobson, this year’s
Booker winner, is absent.
Unlike the Bookers, the Costas have several
categories and thus the range of books
it promotes is wider, from poetry to
children’s – but not necessarily
Lifestyle | Books
anyone interested will simply have to “read
the book”. But Jesse Norman, an MP, is a
genuine philosopher, and – in delivering an
anatomy of the “Big Society” – he is dealing
in terrain all-too-susceptible to sound-bites,
so his approach is wise.
Norman is the right man for the job –
one of the Conservative Party’s few genuine
intellectuals. His last work, “Churchill’s
Legacy: the Conservative Case for the
Human Rights Act”, caused a remarkable
stir and this book will be no different. Many
on the left are deeply suspicious that
Cameron’s new agenda is simply a way of
masking cuts in public spending. Were it
so, it’s unlikely that the Liberal Democrats
would go along for the ride. Instead, as
Norman says, this “shared vision of social
and economic renewal” will be “the glue
that will hold the present government
together.” I for one had hoped that a shared
commitment to liberty might constitute
that glue, but since that doesn’t look likely,
Norman is undoubtedly right to look to an
alternative, social set of policies.
Norman concludes that the Big Society
is not opposed to public services, but
rather is dedicated to improving them
whilst ensuring that community work
comes about as a result of goodwill rather
than the motivation for a paycheck. His
opposition to a paternalist conception of
the state is one that many will support –
and to which, if it comes truly to repre-
sent part of the Big Society’s meaning in
modern life, many will be attracted.
This is a timely and well-written book,
and for those interested enough to grap-
ple with it, some form of enlightenment
should be attained. Alex Deane Alex Deane
is the director of Big Brother Watch, a think
tank.
more diluted. However rather than five overall
winners, thre is one eventual overall winner,
which will announced on 25 Jan.
The big story of this year’s shortlist is the
tussle for the £30,000 poetry gong.
Nominees include 48 year-old former drug
addict Sam Willetts, who wrote his first
book of poetry, New Light For The Old Dark,
in 2007 after coming out of rehab and losing
six years of his life to addiction.
Controversially, he is up against veteran poet
Roy Fisher, 80, who is up for Standard
Midland, meditations on loss and ageing.
The most unlikely-sounding contender is
33
VEXED IN THE CITY
SOLVING YOUR
WORK-LIFE
PROBLEMS
Those cursed
royals could ruin
my wedding
DEAR VEXED:
My fiancée and I have been engaged for
over a year, and four months ago decided on
a July wedding. I have a horrible feeling the
weekend we’ve plumped for is the favourite
for Wills and Kate. The whole thing is going
to be overshadowed by their circus and if it
falls on the same day as ours, I’ll be truly
devastated, and so will my fiancée. Should
we change the date? Help. Richard, 31, fund
management
FEEL for you, I really do. I’m not getting
I married any time soon and I am already
completely sickened by the wedding – it’s
somehow managed to displace things that
must be more important but that we’ll never
know about because they’re not being report-
ed. The world is collapsing? No bother: Kate
and Wills are getting married!
So yes, your wedding. A lot of people are
interested in Will and Kate, but I think you’ll
already notice a groundswell of determined
disinterest. It’s easy to be muddled by the
media’s hysterical and ubiquitous outpouring,
to suddenly feel like you have no choice but
to pay homage to the royal nuptials. But if
you ask your friends if they care, the chances
are a good deal of them will say no.
Then there’s the freshness of it. Right now
it seems interesting; newspapers and televi-
sion channels have homed in on a brilliant
way to fill space, time and coffers. They’ll keep
going at it, too, with each step of the way
chronicled in high definition, as if other peo-
ple’s wedding preparations are so endlessly
fascinating. But that’s the media. Individuals –
nice, normal ones like I’m sure you are – can’t
take it for so long. A few more months of it
and nobody will want to know.
By July, your wedding will
prove a wel-
come distrac-
tion.
Finally,
don’t change
your date.
Your
friends care
more about
you than
about the
dreary
couple and
you need
to go
ahead and
celebrate
that fact.
vexed@
cityam.
com.
Sarah Bakewell’s How To Live: A Life Of
Montaigne In One Question And Twenty
Attempts At An Answer (Bakewell is pic-
tured left) for the biography section. The
playwright Michael Frayn is also shortlisted
for the biography
category with for
My Father's
Fortune. Winners
announced on 5
Jan (categories)
and 25 Jan
(overall).
Zoe Strimpel
 34 Lifestyle | TV& Games CITYA.M. 18 NOVEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Watchdog
9pm CHOICE
Have I Got News for You
9.30pm Reggie Perrin
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week; Holiday
Weatherview
12.30am Sign Zone: Tax the Fat:
Panorama 1am Sign Zone:
Remembrance Week 1.45am
Countryfile 2.40am Antiques
Roadshow 3.40am Restoration
Roadshow 4.10am-6am BBC News
6pm Eggheads
6.30pm Strictly Come Dancing
– It Takes Two
7pm The Culture Show:
The work of artist Caspar
David Friedrich.
8pm CHOICE Nigella Kitchen
8.30pm Autumnwatch 2010
9.30pm Autumnwatch
Unsprung: With wildlife
presenter Iolo Williams.
10pm Never Mind the
Buzzcocks
10.30pm Newsnight; Weather
11.20pm The Culture Show
12.20am The Apprentice:
You’re Fired!
1.05am BBC News 4am-6am
BBC Learning Zone
6pm London Tonight 6pm The Simpsons: Guest 6pm Home and Away:
6.30pm ITV News starring Frances McDormand. 6.25pm Live from Studio Five:
7pm Emmerdale 6.30pm Hollyoaks 7pm Five News at 7
8pm Coronation Street 7pm Channel 4 News 7.30pm Jaguar Adventure with
8.30pm I’m a Celebrity 7.55pm 4thought.tv Nigel Marven:
Get Me Out of Here! 8pm CHOICE Beeny’s Five News Update
10pm ITV News at Ten Restoration Nightmare 8pm The Virgin Queen’s Fatal
10.30pm London News 9pm The Secret Millionaire Affair: Revealed: Five News at 9
10.35pm Olly Murs Revealed: 10pm True Blood 9pm FILM In the Line of Fire:
Profile of the X Factor 11.05pm 8 Out of 10 Cats Thriller, starring Clint
2009 runner-up. 11.50pm Reaper Eastwood, John Malkovich and HAVE I GOT NEWS FOR YOU
11.35pm The Late Debate 12.45am King of the Hill Rene Russo. 1993. BBC 1, 9PM
12.05am Grimefighters 1.10am King of the Hill 1.35am Actor Damian Lewis hosts the satirical
Coppers 2.30am FILM A Dirty 11.35pm The World of
12.30am The Zone: Shopping Shame: Comedy, starring Tracey Stupid Criminals: current affairs quiz, with Kevin Bridges
and interactive gaming; ITV Ullman, Johnny Knoxville, Selma 12.05am SuperCasino and Clive Anderson joining team
News Headlines Blair and Chris Isaak. 2004. 3.55am House Doctor 4.20am captains Paul Merton and Ian Hislop.
2.30am Surface 3.15am The 4.05am Unreported World 4.30am Emergency Bikers 5.10am
Jeremy Kyle Show 4.10am- Dispatches: Riding Europe’s Gravy Michaela’s Wild Challenge 5.35am-
5.30am ITV Nightscreen Train 5.25am-6.10am Countdown 6am Michaela’s Wild Challenge

SKY SPORTS 1 12.30am World Touring Car BBC THREE HISTORY 8pm 10 Years Younger 9pm I
SATELLITE & CABLE

7pm Sky Sports News at
Seven 7.30pm Premier League
World 8pm The Rugby Club
9pm Ringside 11pm-7.30am
Live International Cricket
SKY SPORTS 2
7pm ATP Tour Uncovered
7.30pm Live Premier League
Snooker 11pm Time of Our
Lives 12am The Rugby Club
1am-4.30am Live NFL
SKY SPORTS 3
7pm Race World 8pm
International Cricket 10pm
WWE: Late Night – Raw 1am
WWE: NXT 2am Premier
League World 2.30am
Ringside 4.30am Premier
League World 5am-6am Live
European Tour Golf
BRITISH EUROSPORT
6.40pm International Football
8.15pm Strongest Man
9.15pm Fight Club 12am-
Championship
ESPN
7pm Goal! 7.30pm Live FA Cup
Football: Ebbsfleet United v
AFC Wimbledon (Kick-off
7.45pm) at Stonebridge Road.
10pm MMA Live 10.45pm
Ultimate Fighting
Championship 11.45pm ESPN
Kicks Extra 12am Live NHL Ice
Hockey 2.30am Press Pass
2010 3am MMA Live 3.45am
Ultimate Fighting
Championship 4.45am-
5.45am UFC Unleashed
LIVING
7pm Private Practice 8pm Drop
Dead Diva 9pm Nikita: The
assassin tries to stop a suicide
mission. 10pm Chuck 11pm
Criminal Minds 1am CSI:
Miami 2am Four Weddings US
3am Charmed 4.40am
Exposed: Kate Moss 5.30am-
6am Home Shopping
7pm Children in Need: 50
Greatest Moments 8pm World’s
Strictest Parents 9pm Love Me,
Love My Face 10pm EastEnders
10.30pm Russell Howard’s
Good News 11pm Family Guy
11.45pm Freak Like Me
12.15am The World’s Strictest
Parents 1.15am Love Me, Love
My Face 2.15am Russell
Howard’s Good News 2.45am
Children in Need: 50 Greatest
Moments 3.45am Lip Service
4.45am-5.15am Freak Like Me
E4
7pm Hollyoaks 7.30pm Friends
9pm The Big Bang Theory
9.30pm Meet the Parents
10pm Misfits 11.05pm FILM
Damien: Omen II 1978. 1.15am
Scrubs 2.05am Misfits 3am
Glee 3.40am Reno 911!
4.05am Switched 4.25am
Accidentally on Purpose
4.50am-6am Switched
7pm How the Earth Was Made Didn’t Know I Was Pregnant
8pm Ice Road Truckers 10pm 10pm Paralysed and Pregnant
America: The Story of the US 11pm I’m Pregnant and
Homeless 11.30pm I’m
11pm Decoding the Past 12am
Ice Road Truckers 1am Barry Pregnant and in Prison 12am I
Didn’t Know I Was Pregnant NIGELLA KITCHEN
Sheene 2am Tunnellers 3am
Prehistoric Megastorms 4am-
1am Paralysed and Pregnant BBC 2, 8PM
2am I’m Pregnant and Nigella Lawson demonstrates recipes
5am Ancient Discoveries
Homeless 2.30am I’m from around the globe, featuring
DISCOVERY Pregnant and in Prison 3am 10 chicken teriyaki with noodles and
8pm How Do They Do It? Years Younger 4am Multiple sugar snap peas.
Mums 5am-6am Portland
8.30pm How It’s Made 9pm
Babies
Wheeler Dealers 10pm Swamp
Loggers 11pm Death Machines
SKY1
12am Deadliest Catch 1am 8pm Modern Family 8.30pm
Bear Grylls: Born Survivor 2am The Simpsons: A new
Rory McGrath’s Best of British neighbour moves in. 9pm An
Engineering 3am Hitler’s Gold Idiot Abroad 10pm Raising
3.50am Special Forces Heroes Hope 10.30pm A League of
4.40am Mystery Investigator: Their Own 11pm Wayne
Olly Steeds 5.30am-6am How Rooney’s Street Striker 12am BEENY’S RESTORATION
Does That Work? NCIS: Los Angeles 1am Road NIGHTMARE CHANNEL4, 8PM
Wars 2.55am Oops TV 3.20am New series. Property expert Sarah
DISCOVERY HOME & Lost 4.20am Sell Me the Beeny takes on the biggest challenge
HEALTH Answer 5.10am-6am Are You of her career as she tries to save Rise
7pm Babes in the Wood Smarter Than a 10 Year Old? Hall in East Yorkshire from ruin.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
33 10 13 43 3 11 
6 19
9 4   
32 7
Place the numbers from 1 to 9 in each empty cell so that each 10 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 16
37 13 11
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 11
  
above or to the left of it. 11
You can only use the digits 1-9 9 34
  and you must not use the
30
18     
same digit twice in a block. 6 11 15
    The same digit may occur 16 12 
22
   more than once in a row or
column, but it must be in a
29
11 24
8
 
27 13
   separate block.
5 14 8 
21 35
    12 10
 

   ACROSS DOWN
1 Former Portuguese 1 Substance such as
  
WORDWHEEL province on the south iron or aluminium,
coast of China (5) for example (5)
    T A 4 Accolade (5) 2 Move to a higher
Using only the letters in the Wordwheel, you have 7 Equality (3) point (5)
  ten minutes to find as many words as possible,
D P 8 Small branches (5) 3 Mixture of both
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters N 10 Fowl’s perch (5)
11 Intention (3)
good and bad
experiences (3,3,5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
O R 12 Country, capital Beirut (7)
13 Swarm of young fishes (3)
4 Orderly grouping (11)
5 Standoffish (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
G E 15 Former name of
6 Simple song (5)
9 Brandish (5)
Tokyo, Japan (3)
QUICK CROSSWORD 9 3 8 9 5 9 7 17 Greatly feared (7)
14 Minor parish
7 1 9 7 1 8 5 2 SUDOKU          20 Ms Braun, Hitler’s
official (5)
) 5 , / / $ 1 * 5 <
4 2 1 3 2 3 1          mistress (3) 15 Mr Wise, former
$ 1 $ ( 2
8 6 9 7 5 9 8 4 showbiz partner of
6 9 3 ( 5 * 2 / $
3 5 4 1 4 2
         21 Not in any way (5)
& + , 3 6 / / Eric Morecambe (5)
8 4 7 6 3 5 9 2 1
         22 Implant (5)
, 7 5 ( $ 7 , 6 (
         16 Alternative (5)
$ & 5 ( ,
+ 2 7 ( /
*
, (
$ 5
5
%
(
2
9
1
8 7
4 1 2 8
2 3 6 4 1
WORDWHEEL         
23 Holy sister (3)
24 Peers of the realm (5)
18 Prevent from
2 ( 0 ( & & $          entering (5)
5 2 8 1 ' 8 3 $ . 2 1 6 8 7 9 5 The nine-letter word 25 After the expected
4 6 2 9 5 7 8 3          19 Informal term
6 &
/ ( 9 ( 5
(
/ (
6
0 8
(
5 1 3 8 1 4 6 2
was TALKATIVE          time (5) for a father (5)
 Sport
Mika rips into
Schumi slump
▲
FORMULA ONE
BY JAMES GOLDMAN
FORMER world champion Michael
Schumacher is a “tragic ex-hero” who
is “dismantling his own legacy”,
according to his one time rival on the
track, Mika Hakkinen.
The Finn clashed with Schumacher
on several occasions during a career
that saw him claim two world titles of
his own.
The 42-year-old has toyed with the
idea of returning to the sport he left
in 2001, but unlike Schumacher, who
made an unsuccessful comeback with
Mercedes this year, he has resisted
temptation.
Schumacher capped his 2010 cam-
paign, inwhich he finished with near-
ly half as many points as his
team-mate Nico Rosberg, by spinning
on the opening lap in Abu Dhabi and
seeing Tonio Liuzzi’s Force India
launch into his car, with the nosecone
and front wing narrowly missing his
head.
“Michael is for me now a tragic ex-
hero,” said Hakkinen. “I ask myself
why on earth he got back into the
cockpit. There is the most successful
man in motor sport driving down in
the pack and making a ridiculous mis-
take in Abu Dhabi that almost cost
him his life.
“What has the man who has won
more than anyone else still to prove?
In my view, he is dismantling his own
legacy bit by bit.
“It makes no difference whether it
is for technical reasons or because he
can no longer keep up with the boys.”
NEVER GO BACK | FAILED COMEBACKS
l Bjorn Borg showed just why
wooden rackets belong in the loft,
losing 12 straight matches with his
archaic equipment in the early 90s
l Muhammad Ali was the greatest,
until Larry Holmes and Trevor
Burbick made him look old
l Joe Kinnear’s shock return to
management with Newcastle lasted
just seven months and was best
remembered for a very sweary press
conference
EVEN MONTY’S CATCHING FEEL-GOOD FACTOR
ENGLAND should feel they have a great chance of winning the Ashes in Australia when
Monty Panesar is taking catches like the one he pulled off in Hobart yesterday. The one-
time figure of fun, far from renowned for his fielding prowess, pouched a stunning
effort, diving to his right at mid-wicket, during the final warm-up match with Australia
A, much to the surprise of his team-mate Alastair Cook. Picture: PA
35
Results
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SPORTS EDITOR FRANK DALLERES
email sport@cityam.com
 36 Sport CITYA.M. 18 NOVEMBER 2010

England mindset is: it’ll be

alright on night. It won’t
showed he could compete at that
level. I’d expect him to keep his place
in the squad even when everyone is
fit again.
CHESTS PUFFED OUT
Of the other prospects, emerging
midfielder Jordan Henderson, also
making his first start, and young full-
COMMENT FROM WEMBLEY back Kieran Gibbs both looked out of
TREVOR STEVEN their depth. I think it’s far too early
for Henderson, who to me is still find-
ing his feet with Sunderland, while
have left Wembley with their chests
puffed out and believing they can
win Euro 2012.
What they have that England don’t
is players who want to take the ball
and dictate the play. Karim Benzema
might have been dangerous up front
but it was Samir Nasri and Yoann
Gourcuff in midfield controlling the
game.
HUFF AND PUFF
England are desperately missing a

O
N a soaking wet, wintry Gibbs looked like what he is: playmaker. They need someone who
November evening some Arsenal’s reserve full-back. will come and get the ball, give it, get
85,000 people took the trouble The more experienced players were it back, then give it again – not go
to turn up at Wembley – and just as bad. I’m struggling to come to missing or look to offload it and then
were given absolutely nothing to terms with what the one-paced run away, like some at the moment.
cheer about. It all felt so flat, and so Gareth Barry is doing there, while International football is all about
did England’s performance. James Milner and Theo Walcott also one-touch, the style of game that
Fabio Capello’s men disappointed me. teams like Arsenal and Barcelona
were very, very poor Cardiff’s Jay Bothroyd, the first play, and England are a million miles
and never had France player from outside the top flight to away from that.
on the rack. What play for England since 2007, didn’t Capello’s first defeat came against
really worries me get many touches France almost three years ago, and in
most of all is that I after coming on, that time I don’t think England have
don’t know what but looked com- progressed. The Italian did well in
direction we’re fortable on the World Cup qualification but he does
going in. I won- ball. Goalkeeper not look the same man now. The woe-
der whether Ben Foster was ful tournament itself seems to still be
Fabio does not good. affecting him – maybe he needs to be
either. L i k e stricter again – as well as the players.
Only Andy England, The pressure on him increases, but
Carroll, making France I think it’ll take much more to lose
his debut, came had a him the job. England will huff and
out of the game terrible puff and get to Euro 2012, and proba-
with any credit Wo r l d bly through the group stage. But the
from the England Cup and problem is England have this psyche
side. The Newcastle are under- that, as long as we get there, it’ll be
forward (right) didn’t going a rebuilding alright on the night. Well it won’t;
get much service but process. But they’ll we’ve proved that.

‘We knew we could play that way’

ENGLAND TEAM | TO PLAY SAMOA
Courtney Lawes
tells Frank Dalleres 15
14
Ben Foden
Chris Ashton
Northampton
Northampton
winning in style was 13 Matt Banahan Bath
12 Shontayne Hape Bath
no surprise but is 11 Mark Cueto Sale
10 Toby Flood Leicester
not all-important 9 Ben Youngs Leicester
1 Andrew Sheridan Sale
2 Dylan Hartley Northampton

N
ORTHAMPTON lock Courtney
Lawes may have played a piv-
otal role in transforming
England into stylish world-
beaters but has reminded his col-
leagues of the virtues of winning
ugly.
Lawes is one of a clutch of young-
sters at the heart of Martin Johnson’s
emerging outfit, along with Saints
team-mates Chris Ashton and Ben
Foden and Leicester duo Ben Youngs
and Toby Flood.
The second-row achieved immor-
tality last weekend when he provided
the pass that released Ashton to
sprint 90m for a spectacular try
against Australia that looks destined
to be replayed year after year.
But while that 35-18 triumph saw
England hailed for their swashbuck-
ling display, Lawes knows less enter-
taining qualities will be required if
they are to achieve consistent success.
“It’s a good feeling when you win
convincingly,” Lawes told City A.M.
ahead of Saturday’s clash with
Samoa. “It was brilliant to have been
the link man in that effort [Ashton’s
Lawes set up Northampton colleague Chris Ashton for his wonder try against Australia.
wonder try]. Youngs passed to me and
then I gave Ashton space to score –
that felt good.
“We always knew we could play
that way but it all came together. We
want to win every game and we’re
hungry to win the next two. Against
Australia we showed that we can beat
one of the best teams in the world.
Now we need to make sure that when
we’re not firing we can still beat the
better sides by grinding out results.”
Lawes is one of a number of
Northampton stars who have been
handed the chance to replicate their
stellar Premiership performances in
an England shirt. And the selection of
three club colleagues – hooker Dylan
Hartley, full-back Foden and winger
Ashton – seems to be bringing the
Picture: GETTY
best out of the Hackney-born for-
ward.
“We link up really well in games,”
Lawes added. “We are used to playing
alongside each other. It helps a lot,
and especially when we’re all playing
well.”
England boss Martin Johnson has
shuffled his pack for the penultimate
autumn international, resting cap-
3 David Wilson Bath
4 Courtney Lawes Northampton
5 Tom Palmer Stade Francais
6 James Haskell Stade Francais
7 Hendre Fourie Leeds
8 Nick Easter (c) Harlequins
REPLACEMENTS
Steve Thompson, Dan Cole, Dave
Attwood, Tom Croft, Danny Care,
Charlie Hodgson, Delon Armitage
tain Lewis Moody and making three
other changes with a visit from world
champions South Africa looming.
Lawes, who keeps his place, insists it
is not a case of taking Samoa lightly.
“We’ve got a lot of respect for
Samoa,” he said. “They’ll be difficult
in certain ways. It’s about rotation –
you can’t play four massive games in
a row. It freshens up the squad.”
Tickets for the Investec International
between England v Samoa are available
from £35 for adults and £10 for under 16s
via www.rfu.com/tickets
CITYA.M. 18 NOVEMBER 2010 Sport 37

Fergie: Rooney wasn’t greedy

Mathieu Valbuena
struck France’s sec-
ond goal HIT OR MISS?
Picture: GETTY
Fabio Capello handed debuts to
Andy Carroll, Jordan Henderson

and Jay Bothroyd. Only the Toon
striker can be truly happy with his
night’s work. By James Goldman
Good feet for a big man. Where
have we heard that before? At least
Carroll looks more than useful in the
air though
▲
FOOTBALL
BY FRANK DALLERES
MANCHESTER UNITED manager Sir
Alex Ferguson insists Wayne Rooney
did not threaten to leave Old Trafford
in order to engineer a huge wage hike.
Rooney walked away from contract
talks and demanded a move last
month, flirting with rivals
Manchester City and complaining
about United’s lack of ambition.
The striker performed a swift U-
turn and signed a new deal worth
around £200,000 a week, but
Ferguson believes it was not greed but
a sales pitch from agent Paul Stretford
that made Rooney ask to leave.
“Some young people take bad
advice. He has an agent who is not the
most popular man in the world and
he obviously sold it to Wayne to ask
away. The boy rushed in,” he said.
“But the minute he heard the
response of the public and our sup-
porters, he changed his mind, he
knew he’d made a mistake.
“There’s nothing wrong with that
as long as you recognise it. He imme-
diately apologised and agreed a new
contract within a couple of hours.
“It wasn’t done to get the contract, I
don’t think that for a minute. But maybe
he should’ve listened to better advice.”
Ferguson, speaking at a conference
in Qatar, said he wanted to examine
Rooney’s condition before deciding
whether he was fit enough to face
Wigan on Saturday.
The 25-year-old returned to England
last weekend after spending a week
working on his fitness at the head-
quarters of sponsors Nike, where he is
said to have lost half a stone.
“We want to get Wayne back to his
best,” said Ferguson. “He’s had a good
week in the States and we’ve got him
to the point where we want him to be
in terms of accelerating his fitness. Is
he ready for the first team? We’ll have
to assess that when I get back.”

Not a great start for Henderson, 21-28 NOVEMBER The O2 LONDON

but, unlike Gareth Barry, seems to
understand the concept of passing
to a white shirt

Harsh, but lets hope Bothroyd’s

family got some nice photos of him
in an England strip, it won’t be hap-
pening again. Out of his depth.

Owls have 28 days

to pay £1.4m bill
ors, including Leicester chairman
▲

FOOTBALL Milan Mandaric, but time ran out,

BY JAMES GOLDMAN
SHEFFIELD WEDNESDAY have been
given a 28-day stay of execution by a
High Court judge in order to find new
owners and pay off an outstanding tax
bill of £1.4m.
The League One club had been fac-
ing a winding-up petition from HM
and chief executive Nick Parker urged
investors to come forward and end
the club’s £27m debt crisis.
He said: “The one glimmer of hope I
can give to fans is that there are other
people out there who understand how
important Wednesday is. It’s now time
for those people to step forward.”
Rotherham businessman Spencer

Revenue & Customs for £600,000, but
the judge revealed in court that the
figure had more than doubled.
The judge confirmed that the Owls
were trading insolvently and have
been granted an extension due to
exceptional circumstances.
Wednesday had hoped to broker a
deal on Tuesday with one of four suit-
SPORT | IN BRIEF
Injury forces Moya to retire
TENNIS: Former French Open champion
Carlos Moya has announced his retire-
ment due to an ongoing foot injury. The
Spaniard made his last appearance on the
ATP Tour at the Madrid Masters in May,
losing in the opening round. Moya plans to
play one more tournament in Seville next
month before quitting. “I wanted to say
goodbye at one of the big tournaments,
but that dream wasn't to be,” he said.
RODDICK vs NADAL
Fearn and Sheffield accountant John
Roddison front one of the four bids for
Wednesday, who owe the Co-operative
Bank £23.5m.
Another bid comes from a group
led by former Wednesday director
Mick Wright and the others come
from a UK-based businessman and a
GET YOUR TICKETS NOW FOR
Middle Eastern group.
THE MONDAY NIGHT CLASH
www.BarclaysATPWorldTourFinals.com
Lawson set to captain Scotland
RUGBY UNION: Rory Lawson will stand in
for Mike Blair at scrum-half and also take
over the captain’s duties for Scotland’s
second autumn Test match against South
Africa on Saturday. Scott MacLeod takes FOR CORPORATE HOSPITALITY, PLEASE CONTACT IMG ON 020 8233 5888
the place of Jim Hamilton in the second OR ATPTennis@imgworld.com. Follow the stars on their journey to compete at the
row while Nathan Hines’ inclusion at 2010 ATP World Tour season finale on Check website for order of play.
flanker means a change of position for Qualification and participation subject to ATP rules.
Kelly Brown, who moves to No8 and
Richie Vernon misses out.
 Sport
38
FRENCH LESSON
ENGLAND 1
FRANCE 2
▲
FOOTBALL
BY JAMES GOLDMAN
ENGLAND manager Fabio Capello
came out fighting after his decision
to field an experimental side back-
fired on another desperately forget-
table night for the national team.
Goals in either half from Karim
Benzema and Mathieu Valbuena
hardly did justice to the gulf in
class between the two sides, with
Peter Crouch’s late consolation fail-
ing to paper over the cracks.
Asked if the occasion was too
much for youngsters Jordan
Henderson, Kieran Gibbs and
Andy Carroll, Capello said:
“Every time I read the news-
papers, they say ‘pick the
young players’. Well today I
did and now you want to
talk about the result.
“Young players
need senior players
around them, experi-
ence at this level is
very important. You
can’t compare this
team with France, the
inexperience is far
greater in our side than
in theirs.
“It was important for
Easter gets armband as Johnson rings changes
▲
RUGBY UNION
BY FRANK DALLERES
HARLEQUINS No8 Nick Easter will
captain England in a Test match for
the first time on Saturday after man-
ager Martin Johnson resisted the urge
to make wholesale changes for the
visit of Samoa.
With a final Test of the autumn
against South Africa on the horizon,
Johnson has shuffled his pack slightly
by making four changes from the side
that beat Australia last weekend.
But, while regular skipper Lewis
Moody is being rested, Johnson is
wary of tinkering too much with a
me to have a look at a couple of
young players and see their
value.”
To make matters worse for
Capello, he became
embroiled in a club ver-
sus country row over
Steven Gerrard, who
exited the field
with a hamstring
injury after 84
minutes.
Liverpool had
asked that Gerrard
only play an hour, with
fitness chief Darren
Burgess calling
team that has made huge strides over
the past fortnight.
“The team is doing well but we
want to keep the continuity and
we’ve seen the rewards of that,” he
said. “We don’t want to break it up
too much. The performance [against
Australia] didn’t come out of the
clouds, it was a build-up of what
we’ve been doing for a while.”
Easter takes over the skipper’s arm-
band from Moody, meaning a first
international start for South Africa-
born Leeds flanker Hendre Fourie.
Prop David Wilson and blindside
flanker James Haskell come in for
Dan Cole and Tom Croft, while per-
“ONLY CARROLL EMERGED
WITH ANY CREDIT”
READ TREVOR STEVEN’S
ENGLAND VERDICT: P36
England “completely amateurish”
on his Twitter account.
Capello responded, saying: “We
spoke with Steve and he said he
would play one hour, but after
Barry’s injury we had problems.
That’s why he stayed on the pitch.”
On a night eerily reminiscent of
England’s last defeat at Wembley,
to Croatia – rain, a makeshift
defence all at sea, an opposition
midfield infinitely superior in
technique and tactical awareness –
it appears that, three years on
from that debacle, all that has
changed is the nationality of the
manager and the absence of an
haps the most intriguing change is
Matt Banahan’s selection at out-
side centre.
The Bath player is better
known as a winger,
where he performed on
his previous five
England appearances,
but takes Mike
Tindall’s No13 shirt
and is set to partner
club colleague
Shontayne Hape in
midfield.
“He’s played a
number of Test
matches on the
umbrella in his hand. Capello (left)
can, of course, point to the
absences of John Terry, Ashley
Cole, Wayne Rooney and Frank
Lampard as a legitimate factor
behind England’s limp display.
But the excuse that his side were
made to pay for their inexperience
rings hollow given that France per-
formed with such eloquence and
imagination. The combined inter-
national experience of their side:
271 caps, the same as England.
Gerrard was one of the few
England players to offer any resist-
ance, but he was powerless to pre-
vent Benzema slotting France’s
wing and done very well,”
Johnson added. “As a young
player he has learned what it
is to come in and be a Test
player. His condition is
far better than it has
been. The physical
side is obvious but I
think he has
skills as well
which peo-
ple maybe
underesti-
mate. He’s
been very, very keen and has
practised very well.”
Easter has captained England in
CITYA.M. 18 NOVEMBER 2010
opener in the 16th minute, and
was one of the players caught out
of position when Valbuena steered
home the second 10 minutes after
the break. He was already making
his way down the tunnel by the
time Crouch volleyed home
Carroll’s eagerly anticipated
debut was hailed as “encouraging”
by Capello, whose side were booed
off for the second home game in a
row. It is doubtful that many of the
85,495 fans, swathes of whom left
early, would be upset if the Italian
wasn’t in charge to see the
Newcastle striker’s next England
performance.
non-cap internationals, including
against the Barbarians in 2008, but
never before in a Test clash. However
he was tipped as a potential skipper
when Moody suffered injury in the
run-up to the Autumn campaign,
jeopardising his participation.
England have not faced Samoa
since the 2007 World Cup, while the
last time they clashed at Twickenham
was in 2005 when both sides had a
man sent off. Moody was dismissed
for fighting with then Leicester team-
mate Alesana Tuilagi, who scored as
Samoa lost 20-10 to Ireland on
Saturday.
COURTNEY LAWES INTERVIEW: P36