Reviews:
HARRY
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IS BACK p32
Issue 1,267 Friday 19 November 2010
IRELAND WILL
RECEIVE TENS
OF BILLIONS GM PULLS OFF
IN LOAN DEAL RECORD FLOAT
BANKING
▲
BY MARION DAKERS
IRELAND is likely to take a loan worth
tens of billions of euros from the
International Monetary Fund and
European partners to prop up its bank-
ing system, the troubled country’s
banking chief said yesterday in the first
official confirmation that a bailout is
imminent.
Central bank governor Patrick
Honohan said “we are talking about a
very substantial loan for sure – tens of
billions, yes,” when asked about the res-
cue package.
“The intention is and the expecta-
tion is, on their part and personally on
my part, that negotiations or discus-
sions will be effective and a loan will be
made available and drawn down as
necessary,” he added.
Experts from the European
Commission, the European Central
Bank and the IMF met at the Irish cen-
tral bank yesterday to discuss the possi-
ble rescue package, with discussions
set to continue into next week.
Finance minister Brian Lenihan said
in parliament that the embattled gov-
ernment had not formally asked for a
loan, and the amount needed was cur-
rently unknown. Estimates yesterday
ranged from €80bn (£68bn) to €110bn.
“The banks themselves can’t put a
figure on the residential debt, and the
figure has been going up and up over
the last two years,” WorldSpreads chief
executive Conor Foley told City A.M. last
night. “Based on our estimates of the
FTSE 100 ▲ 5,768.71 +76.15 DOW ▲ 11,181.23 +173.35 NASDAQ ▲ 2,514.40 +38.39 £/$ ▲ 1.60 +0.01 £/¤ ▲ 1.18 +0.01 ¤/$ 1.36 unc
BUSINESS WITH PERSONALITY
Central bank governor Patrick Honohan (top)
said Ireland would take a “substantial loan”;
while deputy PM Mary Coughlan (bottom) said
its low corporate tax rate was “non-negotiable”
banks’ debts, the amount needed
won’t be less than €80bn.”
The government would not be
coerced into altering its 12.5 per cent
corporate tax rate as part of a bailout
deal, Ireland’s deputy Prime Minister
Mary Coughlan said yesterday.
French and German officials are
thought to be pressing Ireland to raise
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the attractive rate, but Coughlan told
the Irish parliament: “It’s non-nego-
tiable.” Lenihan said on Wednesday the
country’s tax policy was protected
under the EU’s Lisbon Treaty.
Irish employers’ group IBEC backed
the government’s firm stance. “Any
change in the corporate tax regime
would be counterproductive to the col-
lective efforts to reduce the budget
deficit,” said director general Danny
McCoy. “Ireland is a small, open trad-
ing economy and the recovery will
come from enterprise. It is vital that
the ability of Ireland’s enterprise sector
to drive growth and recovery is not
undermined in any way.”
David Cameron said he has not
ruled out a direct UK contribution to
Ireland’s coffers, telling a House of
Commons committee yesterday that
Ireland is “a close neighbour, a good
friend, a country that we have very
close political and economic relations
with . . . Our banks are very connected to
the Irish banks. We have an interest in
not just the Eurozone being a success,
we have an interest in Ireland being a
success.”
After 10 days of losses, European
stock and bond markets and the euro
rebounded yesterday on expectations
Ireland would become the second
Eurozone country after Greece to
receive a bailout.
Ireland’s cost of borrowing, which is
close to an 11-year high, fell as worries
of a sovereign default eased. Yields on
10-year gilts dropped from 8.3 per cent
to 8.1 per cent yesterday.
▲
AUTOMOTIVE
BY STEVE DINNEEN
GENERAL MOTORS closed 3.6 per cent
higher yesterday after pulling off the
biggest IPO in US history.
The stock closed at $34.19, up from
its float price of $33 a share.
Frantic trading throughout the day
saw more than 100m shares change
hands, out of the total of 478m
placed, while financial advisers strug-
gled to meet the demands of investors
desperate to get hold of the stock.
GM raised $20.1bn after pricing
shares at the top of its proposed
range. The total is expected to top
$23bn after underwriters on the deal
take up options to shift extra stock.
It is the largest ever IPO retail
uptake, with small investors snapping
up more than 17 per cent of the firm,
although this was less than the 30 per
cent originally expected.
Combined fees are estimated to
ANALYSIS l General Motors
$
35.5
35
34.5
34
10 am 11 am 12 pm
FREE
Barack Obama
hailed the float
as a success for
his Tarp scheme
Picture: REX
have exceeded $248m, with Morgan
Stanley and JP Morgan taking home
around $40m each.
Bank of America Merrill Lynch and
Citigroup were also listed as lead
underwriters, with Barclays Capital,
Deutsche Bank, Goldman Sachs,
Credit Suisse and Royal Bank of
Canada all working on the deal.
The roaring success of the IPO
could set the US and Canadian gov-
ernments up for a windfall down the
line as they offload the remainder of
their stakes.
The US government sold around
half of its 61 per cent interest, while
Canada sold 20 per cent of its 11.7 per
cent stake.
Barack Obama hailed the float as a
victory for his Tarp bailout scheme.
He said: “Supporting the American
auto industry required tough deci-
sions and shared sacrifices, but it
helped save jobs and rescue an indus-
try and make it more competitive.”
34.19
18 Nov
1 pm 2 pm 3 pm
Certified Distribution
04/10/10 - 31/10/10 is 110,406
 2 News
Crisis must be used to force change
EDITOR’S LETTER
ALLISTER HEATH
SOMETIMES, crises are the best way to
force through change. Take what has
happened to the US car industry. I
wish the US government hadn’t bailed
out General Motors; governments
should not be in the business of help-
ing individual firms in this way. The
assistance helped GM’s remaining
employees but it unfairly put other
companies at a competitive disadvan-
tage, including Ford, Toyota and oth-
ers who had done all the hard work to
put their own houses in order.
Putting that crucial point aside,
however, at least GM was transformed
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WHAT THE OTHER PAPERS SAY THIS MORNING
LLOYDS HOT FOR PROPERTY DEALS
Lloyds Banking Group will be behind
almost one-sixth of all property deals
in the UK this year, as some £4bn of
property has been shifted by boom-
time borrowers needing to repay
loans to the bank’s £30bn troubled
real estate debt division. Lloyds, the
largest lender to commercial proper-
ty with almost a quarter of the
£250bn of outstanding debt, has
formed a 425-strong business support
team headed by Richard Dakin.
BRAZIL FACES AIRPORT SHORTFALL AT
WORLD CUP
Brazil risks public embarrassment
because it will run out of space at its
airports well before it hosts the World
Cup in 2014 due to a rapid increase in
demand and inadequate develop-
ment plans, according to leading air-
line industry executives. Without
more development, observers fear
during its bankruptcy phase, with fac-
tories shut and ridiculously generous
union-negotiated wage and pension
costs cut to more realistic levels. The
firm now makes money on every car it
sells, rather than losing a packet.
The IPO values GM at about $63bn.
Roughly $23.1bn will have been
raised, the biggest public offering in
history, eclipsing the $22.1bn raked in
by Agricultural Bank of China in July.
This is an astonishing turnaround
from GM’s near-death experience in
2008. Its rescue left the US Treasury
with a 61 per cent stake, cut to 33 per
cent yesterday. At $33 a share, the par-
tial sale represents a loss of $9bn on
taxpayers’ original investments; how-
ever, the soaring share price means
that they could still quite easily break
even on the deal over time. GM’s trans-
formation – it has, of course, still a
long way to go – is a perfect case study
of how a crisis can transform a seem-
ingly untransformable organisation
and thus end up being beneficial.
In a similar fashion, the British gov-
Hands looks
for next deal
PRIVATE EQUITY
▲
BY MARION DAKERS
PRIVATE equity tycoon Guy Hands
said yesterday he was focused on “the
next deal” following his attempts to
sue Citigroup over his purchase of
struggling music label EMI.
He said his firm would “look like
geniuses” if it hadn’t bought EMI, but
refused to discuss his recent legal bat-
tle against Citigroup. “EMI is where
EMI is,” he told the Super Investor
conference in Paris yesterday.
It was the Terra Firma owner’s first
public appearance since losing a
$2bn (£1.25bn) fraud case against the
investment bank over the purchase of
EMI. Hands unsuccessfully claimed
Citigroup had tricked him into pay-
ing $6.8bn for the debt-laden firm in
May 2007.
He told conference delegates that
that Brazil will face flight delays and
cancellations around the World Cup.
DEBT VENTURE AIMS TO PLUG £1.5BN
PROPERTY HOLE
Fund managers Schroders and Cairn
Capital have teamed up with
Eurohypo, the German bank, to
launch a real estate debt venture with
the aim of plugging a £1.5bn hole in
the UK property market. There is a
shortage of new real estate lending as
bank retrench after profligate lend-
ing for property purchases during the
boom years.
SPORTECH AND BETFRED LEAD FIELD
IN TOTE RACE
Sportech, the football pools opera-
tor, and bookmaker Betfred are the
early frontrunners in the auction for
the government’s Tote betting busi-
ness. Lazards, which is conducting
the auction, this week sent out an
information memorandum to
prospective bidders, according to
those close to the deal.
ernment ought to have made use of
the Irish crisis to push through real
change in the EU and force a renegoti-
ation of the Treaties to allow the UK to
extricate itself of those bits that it
doesn’t like. Prior to the election, the
Tories said they wanted to repatriate
some powers from Brussels to
Westminster, including on social poli-
cy. Depressingly, the trend since the
election has been entirely the other
way, with European institutions crack-
ing down on the City like never before.
The government has blown a once-in-
a-decade opportunity to reverse this
nonsense. Eurorealist Tories have been
defeated by unthinkingly pro-EU ele-
ments within the coalition.
One change which the crisis must-
n’t trigger is the abolition of Ireland’s
12.5 per cent rate of corporation tax.
Competition between nations for cap-
ital, labour and corporate HQs is a
good thing. The French and Germans
hate it, because they want to keep
taxes higher; they would rather create
a cartel of high-tax nations. If Ireland
private equity needed to accept lower
returns in the future. “2004 to 2007
was an anomaly...the Woodstock
years. We have to accept reality and
stop chasing ghosts. We are back
where we were,” Hands said.
Buyout funds should return to
basics, he said. Private equity would
have to invest in good businesses and
hold on to them long-term rather
than selling out after three years.
Investors should expect returns of
eight or nine per cent rather than the
20 per cent seen at the height of the
market, he added.
Terra Firma boss Guy
Hands made his first
public appearance
since his failed lawsuit
against Citigroup
US FACES BOYCOTT FOR CARBON
HABIT
The US will be banned from selling
goods to many countries if it contin-
ues to shirk its promise to cut green-
house gas emissions, according to the
world’s leading climate change econ-
omist. In an interview with The
Times, Lord Stern said nations that
were taking strong action on emis-
sions could start imposing restric-
tions on “dirty” US exports by 2020.
GAMBLERS CAN STILL TURN TO
LITTLEWOODS FOR A WINNER
The name may have disappeared
from the pools coupons handed to
doorstep collectors every week, but
Littlewoods will survive on the inter-
net for another five years. Football
pools operator Sportech has signed a
licencing deal with Shop Direct,
which owns the Littlewoods brand, to
use the name for online gambling.
were forced to give up what is one of
its few successful policies, it is fin-
ished as an economy. Hiking corpora-
tion tax wouldn’t even raise any
money. Firms that have relocated to
Dublin would simply up sticks again
and move somewhere else; they won’t
return to high tax countries. There are
more low tax jurisdictions than ever,
not least the up and coming global
financial centre that is Singapore.
The Eurozone’s existential crisis
won’t end with Ireland’s bailout. It
will be merely delayed. Ireland can be
saved. This may not be true of some
other Eurozone countries; their day-
to-day non-banking budget deficit are
much larger and their economies less
competitive. Another bailout of anoth-
er small country a few months down
the line would start to stretch the EU
and IMF’s ability to cope. The real
worry is whether Spain or Italy will
eventually lose the markets’ confi-
dence. Britain desperately needs to
turn this crisis to its advantage.
allister.heath@cityam.com
Former Man Group boss Stanley Fink is to join the House of Lords
City stars set for peerages
POLITICS
▲
BY MARION DAKERS
THE CONSERVATIVE and Labour par-
ties are set to name several City play-
ers in the latest lists of appointed
peers.
Stanley Fink, the Tory party treas-
urer and former chief executive of
Man Group, is among those said to be
on the list of the latest entrants to the
House of Lords, which will be
revealed on Saturday.
Former BMI chairman Sir Michael
BERNARD MADOFF EMPLOYEES
ARRESTED
A former secretary to Bernard Madoff
and another long-term employee of
the multi-billion-dollar fraudster have
been arrested and charged with secu-
rities fraud and falsifying books.
Annette Bongiorno, who worked as a
secretary and helped to run the back
office at Madoff Securities, was arrest-
ed at her home in Boca Raton, Florida.
Joann Crupi, another former employ-
ee, was also arrested.
HALF OF BRITISH BUSINESSES HIT BY
PROFIT SQUEEZE
Almost half of British businesses were
hit by decreased profits in the last
quarter, according to a survey of busi-
ness owners and financial directors. A
quarterly ranking of the warning
signs of business distress by R3 found
that a downturn in profits was experi-
enced by 49 per cent of firms.
CITYA.M. 19 NOVEMBER 2010
NEWS | IN BRIEF
Dell reports strong third quarter
Dell raised its yearly income forecast
after third-quarter margins and earn-
ings beat expectations, helped by sliding
costs of PC components propelling its
shares 4.8 per cent higher. The personal
computer maker, which vies with Acer
for the number two spot in the global
PC market, expects stable demand from
government and corporate customers
and favourable component prices this
current quarter. Dell beat earnings fore-
casts by a wide margin. It yesterday
reported net earnings for the quarter
ended 29 October of $822m (£512m),
up from $337m, from a year ago.
Gap posts weak earnings
Gap posted a slight decrease in net prof-
it that met Wall Street estimates,
despite tepid sales in advance of the key
holiday selling season, but the apparel
retailer stood by its 2010 profit outlook.
Net profit in Gap's third quarter fell one
per cent to $303m (£189m), from
$307m a year earlier. Sales rose two per
cent to $3.65bn, above the $3.58bn
expected by Wall Street. The firm said it
would close about 100 Gap stores in
2010, 10 below its earlier guidance.
Picture: GETTY
Bishop is also thought to be on the
list of up to 30 new Conservative
peers, along with Andrew Feldman,
the party co-chairman and a universi-
ty friend of David Cameron.
The Labour party has also submit-
ted a list of up to 20 candidates for
the Lords, who have been scrutinised
by a selection committee. Labour’s
list is thought to include Nigel
Doughty, founder of private equity
firm Doughty Hanson and owner of
Nottingham Forest FC, and ready
meal entrepreneur Sir Gulam Noon.
NORWAY CENTRAL BANK OWNS 7.5PC
OF BLACKROCK
Norges Bank, the central bank of
Norway, became the latest to report
boosting its stake in BlackRock. after
Bank of America and PNC Financial
Services sold a total of $9.57bn in a
BlackRock secondary offer this
month. According to a filing with US
regulators yesterday, Norges now
owns 9.85m shares, or 7.5 per cent of
BlackRock’s common shares.
TRICHET CONCERNED ABOUT
STABILITY PACT
European Central Bank president
Jean-Claude Trichet yesterday
expressed “grave concerns” about the
depth of the EU’s stability pact, call-
ing for a “quantum leap” in econom-
ic governance, while speaking at a
central banking conference in
Frankfurt. He called for increased
governance and surveillance.
CITYA.M. 19 NOVEMBER 2010 News 3

WHITNEY STRIKES AGAIN

Airbus to seek compensation

Picture: REUTERS
for Rolls-Royce engine failure
“We can’t comment on customers dent could delay deliveries next year.

▲
AVIATION
BY MARION DAKERS
AIRCRAFT maker Airbus will seek
compensation from Rolls Royce for
disruption linked to its engine failure
on a Qantas flight earlier this month.
Rolls-Royce plans to replace engines
in the wake of the Qantas Airbus
A380 emergency, when an engine
blow-out forced a passenger plane to
turn back to Singapore.
but we can say that any cost Airbus
incurs, we will seek full financial
compensation from Rolls-Royce,” an
Airbus spokesperson said yesterday.
The move means that Rolls-Royce
could face a more serious financial
impact than thought from the inci-
dent.
Airbus, which has almost 200
orders for A380 planes on its books,
said disruption caused by the inci-
Qantas said yesterday around 40
Rolls-Royce engines, or around half of
those in use in A380 aircraft, will be
affected. Qantas’ six A380s have been
grounded since the incident. The air-
line said in a memo yesterday its
pilots had struggled to shut down an
engine on the flight on 4 November
due to debris from the Rolls-Royce
engine that severed cables as it broke
up mid-flight.

MEREDITH Whitney, the analyst credited with predicting the financial crisis, plans to go
head-to-head with Moody’s and Standard & Poor’s by launching her own credit ratings
agency. Whitney already set up her own research company, Meredith Whitney Advisory
Group, last year after leaving her analyst role at boutique investment firm Oppenheimer.

Deloitte woos
Roland Berger
It is believed the new firm would
▲

M&A
BY MATTHEW WEST
DELOITTE Touche Tohmatsu is in
advanced talks about a possible
takeover with Roland Berger Strategy
Consultants it emerged yesterday.
The discussions to merge the
German firm with Deloitte’s strategic
consulting practice are in line with
consolidation activity in the wider
consulting sector this year. Risk man-
agement firm Aon acquired Hewitt
Associates in a $4.9bn (£3.05bn) deal
which added to its human resources
consulting arm.
Deloitte confirmed yesterday that
discussions were taking place.
“We can confirm that Deloitte and
Roland Berger are in advanced discus-
sions to merge their businesses. We
have an exciting ambition to create a
market leading strategy consultancy
within Deloitte’s Consulting busi-
ness,” the accountancy said.
be called Roland Berger Deloitte
Strategy Consultants.
Martin Wittig, Roland Berger’s
chief executive, is thought most likely
to become the new company’s chief
executive with Jeff Watts, Deloitte’s
global strategy and operations leader,
being lined up as his deputy should
the deal go through.
Roland Berger also confirmed the
talks with Deloitte. Matthias
Hopfmueller, a spokesman for the
firm said: “Discussions between the
two companies are already taking
place to open up new growth
prospects for ourselves and Deloitte
but we have to discuss this with all
the partners at our international
meeting in December.”
Roland Berger began as one-man
company in 1967 with a focus on mar-
keting consulting. In 2009, the com-
pany generated €616m in sales and
employed 2,000 staff worldwide.

United Biscuits back on the block

as Chinese firm’s offer crumbles
talks, are likely to be invited back into
▲

CONSUMER
THE PRIVATE equity owners of United
Biscuits are opening up a possible
£2bn sale to new bidders after exclu-
sive talks with a preferred suitor
ended, people familiar with the mat-
ter said yesterday.
US food groups Kraft, Campbell
Soup and Kellogg’s, which all looked
at United Biscuits before Chinese food
group Bright Food entered exclusive
the process, the people said.
A number of rival buyout firms are
also thought to be readying approach-
es for the business.
United Biscuits, Britain’s biggest
snack food group and maker of
McVitie’s biscuits and Hula Hoops, is
owned by Blackstone and PAI
Partners. Blackstone declined to com-
ment last night, while PAI did not
respond to requests for comment.
 4 News
Advisers say
migrant cap
needs rethink
▲
POLITICS
BY TOM DE CASTELLA
PLANS to cap the number of skilled
migrant workers coming to the UK
will only go a small way to achieving
new immigration targets and are like-
ly to damage economic growth, a
government advisory body warned.
The Migration Advisory Committee
(MAC) was asked by Home Secretary
Theresa May to recommend limits on
the number of skilled workers enter-
ing the UK from outside Europe.
Its latest report says that if govern-
ment targets to return immigration
levels to “the tens of thousands” from
196,000 by 2015 are to be achieved,
the number of workers from outside
Europe will need to be cut by between
13 and 25 per cent next year.
But in his foreward, MAC chair
Professor David Metcalf stated: “It is
not possible to reduce net migration
to the tens of thousands by limiting
work-related migration alone. This
goal can only be achieved by also cut-
ting net migration under the study
CITY VIEWS: IS THE GOVERNMENT RIGHT TO PUBLISH
A LIST OF ITS BIGGEST SUPPLIERS? Interviews by Thomas Hamed
and family routes.”
The professor noted “widespread
concern among employers regarding
the impact that limits on migration
could have” and suggested that alter-
native methods to capping workers
may be more practicable.
“Limits on work visas could be
eased if, for example: the study and
family routes bear more than their
pro-rata share of any cuts.”
The 300 page report gave support
to businesses concerned by the eco-
nomic impact of a stringent cap on
migrant workers. He said: “[Skilled]
migration makes a small but positive
contribution to GDP per head. Such
effects will accumulate over time and
become more significant.”
Baroness Jo Valentine, chief execu-
tive of business lobby group London
First praised the bold nature of the
report.
She said: “It is quite brave of them
to point out, more than once in the
document that the economic case
argues against capping these highly
skilled individuals.”
TONY STIRZAKER | MOLEX
“Indeed it will help because the govern-
ment is spending way too much. Much
of this money is wasted.
Thankfully, the new transparen-
cy also lets me pay taxes with
confidence.”
PHIL MOORE | RSA INSURANCE
“I think the transparency will help me form
an opinion. It will help me find out what my
government is spending on, and deter-
mine if I like it or not.
Undoubtedly, this gives me confi-
dence now that I can see where
the money is being spent.”
PIERRE HENRI LEROY | PROXINVEST
“I would say ‘yes’. Disclosure is a really
good thing because it lets you see where
the money is going. If you
don’t disclose, no one will trust
you.”
CITYA.M. 19 NOVEMBER 2010
Government
publishes
spending data
TAX
▲
THE government is to publish a list of
its biggest suppliers today as it
launches its drive to make public
spending more accountable.
Cabinet Office minister, Francis
Maude, will publish the spending
data later this morning which shows
all departmental spending above
£25,000.
Among the government’s biggest
suppliers are the Young People’s
Learning Agency, established in April
to provide support for training and
education to all 16 to 19 year-olds in
England, Partnerships for Schools
and the Greater London Authority.
The data published covers govern-
ment spending over the last six
months and the government expects
that charities alongside access to
information groups will use it to help
the public understand where money
is being spent.
The government has also created
an open access website to give the
public and computer programme
developers easy access to the data
from all levels of government.
The Taxpayers Alliance welcomed
the move. A spokesman said: “There
is lots of excellent information that
will make it easier for us to hold the
government to account for its spend-
ing activities”
CITYA.M. 19 NOVEMBER 2010 Focus on LSE 5

Earnings
per share:
23.3p (up 11
Group is still well-placed to compete
per cent) despite growing fragmentation
Total six-
L
SE has not had an easy time so Still, despite growing fragmenta-
far this year, after it was shuf- tion in the marketplace, LSE is well-
month fled out of the FTSE 100 in placed to compete in Europe.
revenues: June. Following the worst of It maintains a dominant market
the financial crisis, 2010 has seen share in the UK and with its move
£297.9m nervous investors shuttle into into high-frequency trading (albeit
bonds and out of equities, partly slightly marred by suspected sabo-
explaining why the company’s rev- tage), it has proved that, with some
LSE boss Xavier Six-month enues saw barely any change. prodding, it is ready to move with
Rolet is hoping to pre-tax Its results yesterday benefited the times.
cash in on lucra- from a one-off gain of £5.6m after juliet.samuel@cityam.com
tive derivatives profit: renegotiating VAT calculations with
trades £100.2m the Treasury, but they were other-
Picture:Micha
Theiner/ CITY A.M
wise right on consensus, with oper-
ating profit of £155m.
BOTTOMLINE
Analysis by Juliet Samuel

LSE to launch
new platform
for derivatives
tives platform: “This was an isolated
▲

FINANCIAL SERVICES
BY JULIET SAMUEL incident and, although a thorough
investigation is ongoing, it is clear that
THE London Stock Exchange (LSE) has it was unconnected to the functioning
announced that it will launch a pan- of the trading platform itself,” the
European derivatives trading platform company said in its third-quarter
in the second quarter of 2011. results statement.
The move comes after rival trading Overall, analysts were cautiously
platforms stole market share, in part positive on LSE’s earnings. Its six-
due to regulatory changes following month pre-tax profit was up 26 per
concern about competition. cent to £100.2m. Revenues from pri-
In February, LSE bought the high- mary capital markets were up just one
frequency trading platform Turquoise per cent on last year, to £297.9m, and
as part of its response to changing revenues from cash equities in the UK
demand. Turquoise, which uses tech- fell 18 per cent to £44m.
nology from LSE-owned company
Millennium IT in October, will form ANALYSIS l LSE 747.50
p 18 Nov
the basis of its new platform. 760
Turquoise suffered a blow to its rep-
utation earlier this month when the
Millennium IT system it uses was 720
taken out for two hours by suspected
sabotage. 680
The incident forced LSE to put back
the move-over of the main market
onto the Millennium IT system, but 640
the firm insists that it has not affected
its plans for the Europe-wide deriva- 23 Aug 13 Sep 1 Oct 21 Oct 10 Nov

Rolet celebrates rules rethink

▲

REGULATION seat in Brussels. This is very good

BY DAVID HELLIER news for the UK, for the corporate sec-
tor looking to raise capital, in particu-
LONDON stock exchange (LSE) chief lar SMEs, and for financial markets”
executive Xavier Rolet yes- SEE DETAILThe E CITY exchange chief has
S INSIstock
Issue 1,220

LSE BOSS: H DE P28

Wednesday
15 Septemb
er 2010

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Rolet counsel. do
of the govern asked for more Xavier Rolet, Hannah
critics the LSE’s CEO,
come forwa ment’s
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to raise fundsof the City the against propos
and small
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have long,” on 18 October. “Weltation Europe’s has the ers. y set
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Consumer Protection How Xavier Rolet in arguing that the
and Markets Authority, campaigned through the Listing Authorities
which will hold the pages of CityA.M. should not be split.
 8 Economic News
VAT rise will
hurt growth,
says the OBR
▲
ECONOMICS
BY DAVID CROW
GEORGE Osborne’s decision to hike
VAT will shave 0.3 per cent off GDP in
2011-12, the official independent fore-
caster said yesterday.
The chancellor will increase the
sales tax from 17.5 per cent to 20 per
cent in the New Year, as he seeks to
pay down the largest deficit in
Britain’s peacetime history.
Yesterday, the Office of Budget
Responsibility (OBR) revealed the
amount of damage it expected the
tax hike to do to economic growth.
“The interim OBR’s June 2010
Budget forecast assumed that the
increase in the standard rate of VAT
from 17.5 per cent to 20 per cent
would reduce the level of real GDP in
2011-12 by around 0.3 per cent,” it said
in a statement.
Shadow chancellor Alan Johnson
seized on the figures, claiming the
hike would ultimately result in fewer
jobs.
He said: “David Cameron promised
he wouldn't raise VAT because it hits
the poorest hardest. He broke that
promise.
“Now the independent OBR has
told us the impact of Cameron’s very
own jobs tax – slower growth and
fewer jobs.”
The OBR only publishes the
assumptions behind its forecasts in
response to a formal request.
Yesterday, it refused to say who had
asked for the information, although
sources close to the Treasury insist it
was the Labour party.
Meanwhile, economists at the
Adam Smith Institute called on the
government to consider more spend-
ing cuts instead of the VAT rise, which
they said would do less damage to the
economy.
“The coalition should urgently con-
sider making further spending cuts
instead of raising VAT, which is going
to hit every household in the coun-
try,” said Tom Clougherty, executive
director of the Adam Smith Institute.
The rise will come into force on 4
January 2011.
The High Street is losing out to internet sales
Retail sales pick up but
growth stays sluggish
ECONOMICS
▲
BY JULIAN HARRIS
RETAIL sales in the UK rose for the
first time in three months in October,
according to official statistics released
yesterday.
Sales volumes were up 0.5 per cent
compared to September, but still 0.1
per cent lower than the same month
in 2009.
Online retailers continued to out-
perform their traditional High Street
Picture: Micha Theiner/City A.M.
rivals, with non-store retailing up 1.2
per cent on September and a stagger-
ing 12 per cent on October 2009.
But shops selling household goods
such as hardware stores and DIY
superstores fared the worse, with sales
down 4.7 per cent year-on-year, due to
the slowdown in the housing market.
Sales at these retailers were down 0.6
per cent on September.
Analysts warned the VAT hike
would likely stem retail sales growth
in the New Year.
CITYA.M. 19 NOVEMBER 2010
OECD warns of
UK headwinds
as cuts forecast
ECONOMICS
▲
GOVERNMENT spending cuts will put
the brakes on UK growth, according
to influential think tank the
Organisation for Economic Co-opera-
tion and Development (OECD) which
yesterday slashed its forecast for the
UK in 2011.
The Paris-based group said Britain
will grow by 1.7 per cent in 2011, well
below the 2.5 per cent it predicted in
May and the 2.3 per cent expected by
the Treasury.
But despite warning of “head
winds” and “subdued growth”, the
OECD continued to judge the
Coalition’s fiscal tightening “substan-
tial but necessary”.
The OECD’s revised forecast
dragged some growth it previously
saw for the UK next year into the cur-
rent 12 months, upping the 2010 fore-
cast to 1.8 per cent from 1.3 per cent.
However, the pace will slow as contri-
butions from businesses stockbuild-
ing wane and household
consumption remains subdued, it
said.
The organisation forecast world
growth would slow to 4.2 per cent in
2011 from 4.6 per cent this year
before returning to a rate of 4.6 per
cent in 2012. Last May, it projected
expansion of 4.6 per cent in 2010 and
4.5 per cent in 2011.
CITYA.M. 19 NOVEMBER 2010
Economists said George Osborne might have to make deeper cuts
Government
borrowing up
on last year
▲
ECONOMICS
BY JULIAN HARRIS
THE chancellor could have to cut pub-
lic spending by even more than
planned, economists warned yester-
day after government borrowing in
October was higher than last year.
The Office for National Statistics
(ONS) said net borrowing was £10.3bn
last month, up from £10.1bn in
October 2009.
There is now a “very real risk the
deficit will overshoot” the govern-
ment’s target of net borrowing of
£149bn for 2010-11, according to
Graeme Leach, chief economist at the
Institute of Directors.
Chancellor George Osborne may
have to “revisit spending cuts and tax
hikes” if the economy underperforms
between now and March, Leach
added.
The ONS figures show public sector
net debt reaching £845.8bn – the
NEWS | IN BRIEF
Mortgage lending slumps
Gross mortgage lending last month was
the lowest October total since 2000,
according to figures released yesterday.
The Council of Mortgage Lenders esti-
mated that lending was down nine per
cent, from £13.6bn in October 2009 to
£12.4bn last month.
The figures coincided with fresh Bank of
England data on the level of mortgage
lending by major UK lenders.
The Bank announced that 44,000 new
mortgages were approved in October,
yet the value of mortgage lending for
house purchases is down from £5.6bn in
September to £5.3bn. This represents a
nine-month low, the Bank said yesterday.
Economic News 9
ECONOMIST VIEWS: HOW BAD IS THE PUBLIC SECTOR DEBT? Interviews by Julian Harris
ALAN CLARKE | BNP PARIBAS
“ Borrowing is still on track to undershoot the latest emergency budget target. Nonetheless, the
deterioration in recent months is a disappointment and may reflect slower growth.
GEORGE BUCKLEY | DEUTSCHE BANK ”
“ Deficit levels are still high but should come down next year as fiscal tightening steps up a gear.
But only if forecasts of strong growth and employment do not prove overly optimistic.
MICHAEL SAUNDERS | CITIGROUP ”
“ The figures were encouraging, as they were in previous months. And those months’ debt levels
have since been revised down. The UK remains well on course to meet its target.
”
Picture: GETTY
the seiko chronograph.
a new fusion of high performance
and classic style.
equivalent of 57.1 per cent of the UK’s
GDP – up from £694.7bn or 49.3 per
cent of GDP at the end of October
2009.
These figures exclude financial
interventions such as bailouts for
banks. Including these amounts, the
public sector debt is 64.5 per cent of
GDP, says the ONS.
Mark Littlewood, director general
of the Institute of Economic Affairs,
said: “The real liabilities facing the
country are even worse than these
numbers indicate. When our colossal
pensions liabilities are considered,
the true scale of our indebtedness
runs into several trillion.”
Interest payments on the debt also
increased to £3.86bn in October from
£3.35bn a year earlier.
However, economists at IHS Global
Insight pointed out that that the pub-
lic finances have benefited from
increased corporation tax and VAT
receipts.
dedicated to perfection
Car production boosts industry
Over a million cars have rolled out of
British factories this year, according to
figures released yesterday – and most of
the vehicles are being exported. As the inventor of the quartz watch in 1969 and the analogue quartz chronograph in 1983, SEIKO has
Production of new cars grew six per cent decades of experience in fusing high performance with refined design. The new 2010 chronograph
in October, while production is up 30.4
per cent so far this year. Earlier this week measures elapsed time to 1/5th second and features an alarm with dual-time option, a sapphire crystal and
the European Automobile Manufacturers’ 10 bar water resistance. A classic chronograph for the watch connoisseur. seiko.co.uk
Association reported a 16.6 per cent fall
in new EU registrations. Yesterday’s fig-
ures from the Society of Motor
Manufacturers and Traders (SMMT)
showed exports up 6.4 per cent, account-
ing for over four out of five cars pro- AVA I L A B L E AT H . S A M U E L U W W W. H S A M U E L . C O . U K
duced in the UK. Commercial vehicle
production was up 47.1 per cent.
 The Capitalist
10 CITYA.M. 19 NOVEMBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

Centre left to right:

Finsbury senior
partner Roland
Rudd; Philip
Bassett, Labour
adviser in the
House of Lords and
RBS chairman Sir
Philip Hampton

On right: Credit
Suisse’s UK manag-
ing director of
investment bank-
ing Sebastian
Grigg

From left to right: Baronness Vadera, consultant to the Dubai government, Alliance
Boots chief executive Andy Hornby and M&S chairman Robert Swannell

Left: Katherine Garrett-Cox, Alliance Trust chief;

Right: Carphone Warehouse chair Charles Dunstone

Pictures: Micha Theiner/City A.M.

On left: RBS chief executive Stephen Hester and former business secretary Lord Peter
Mandelson; On right KKR partner Dominic Murphy

FUN AND FROLICS AS

CITY’S FINEST GATHER
AT FINSBURY’S PARTY
Complete with ceiling lights, a steady
flow of champagne and a path of can-
dle-filled lanterns guiding our path,
the Tate Britain was last night decked
out for one of the biggest City shindigs
of the year last night. The annual
party of Roland Rudd’s Finsbury PR
made its triumphant return to the
cosy environs of the museum in full
style. Guests strolled past a violet-lit,
upside-down aeroplane hanging from
the ceiling to the central lobby, where
a sizeable chunk of Rudd’s two dozen
FTSE 100 clients had gathered for
drinks and high jinks.
Your Capitalist was there, watching
as the axles of business – at least, its
more champagne-fuelled side – were
greased. Speculation that Finsbury
would ruthlessly shed its New Labour
credentials in favour of this coalition
fad proved groundless, as we spotted
only the regular Tory attendees.
And, of course, the dark prince of
New Labour himself – Peter
Mandelson – was seen gliding across
the floor. Smoothly, he sailed into a
conversation with RBS honcho
Stephen Hester. “How are you?”
exclaimed the lord as if the two were
old friends. “I’ve just come back from
China.”
His impeccable black tie drew
queries – “off to the Italian ambas-
sador’s”, he said airily. But what was
the old hand doing in China?
Apparently embracing his “John the
Baptist” role, as he put it, but further
specifics remained a mystery.
“Does he still think he’s running
RBS?” one chairman asked as the Lord
peeled Hester off from the crowd.
And Sainsbury’s chief executive
Justin King strolled the floor display-
ing his heart on his sleeve – or lapel –
in the form of a huge badge bearing
the supermarket’s logo (and kindly
enlarged to fit the clumsy Olympic
equivalent).
As Centrica chairman Roger Carr
deployed his charming smile to
another guest and former Lloyds boss
Sir Victor Blank made a fashionably
late entrance, Nat Rothschild’s BMW
pulled up at the Tate’s steps. For
some, the evening was still young.
ALL OF IT MUST GO
Ever wanted your own private string
quartet concert? Or to see what goes
on behind the scenes at fashion house
Anya Hindmarch? All such delights
are up for grabs at the Pilotlight
online charity auction. The charity
acts as a mentor to smaller non-profit
agencies, helping them find funding
and business advice from big City
names. Bidding starts today in its
online auction and will close on 30
November, so get your offers in now
at www.pilotlight.org.uk/auction
CITYA.M. 19 NOVEMBER 2010
Julian Treger’s share sale sparks a deal at Western Coal
Capita says
cuts will hit
its revenues
▲
SUPPORT SERVICES
BY HARRY BANKS
CAPITA yesterday said revenues
would be hit harder by government
spending cuts than it previously
expected, casting a shadow over pre-
dictions that robust support services
firms stand to gain from the era of
austerity.
Since the coalition was formed in
May, many large support services
firms such as Capita and rival Serco
have sounded bullish about their
ability to gain market share because
of increased levels of government
outsourcing.
“We indicated that pressures on
public spending might potentially
affect growth in the short term...
This is now occurring and will sub-
due revenue growth in the second
half of the year more than previously
anticipated,” Capita said.
Capita, which processes 25m life,
savings and pensions policies and
handles complaints for the BBC, said
revenue growth would be modest
because many existing contracts
would not be renewed or offset with
new deals, and because fewer con-
tracts had been signed in the second
half.
The support services sector’s
largest players had been expected to
cash in on the cuts because of their
penetration, size and diverse list of
services.
ANALYSIS l Capita
800 p
690.00
18 Nov
780
720
23 Aug 13 Sep 1 oct 21 Oct
Yoplait owners reject £1.2bn Lactalis bid Two linked in Madoff case
▲
FOOD MANUFACTURING
BY HARRY BANKS
THE owners of French yoghurt maker
Yoplait rejected a €1.4bn (£1.19bn)
unsolicited bid from Europe’s largest
dairy group, Lactalis yesterday, saying
it was too low and would force out a
major shareholder.
Unlisted Yoplait, which competes
with food giant Danone, has been in
the spotlight since the summer when
Picture: REX
10 Nov
private equity fund PAI Partners said
it wanted to sell its 50 per cent stake.
The other half of Yoplait is owned
by Sodiaal, a dairy co-operative, which
wants to keep its participation.
Lactalis’ offer, made on 16
November, was for all of Yoplait.
“The price proposed by Lactalis nei-
ther reflects the intrinsic nor strate-
gic value of Yoplait, nor its growth
potential,” Sodiaal and PAI said in a
joint press release.
Treger triggers £2bn bid
▲
MINING
BY DAVID HELLIER
JULIAN Treger, the well known share-
holder activist, has triggered the sale
of the Aim market’s largest company
Western Coal by agreeing to sell a
23.5 per cent stake in it to Walter
Energy, the US coal company.
Treger, who came off the board of
Western Coal last month, owned the
The sale process, which officially
started a few days ago, could also
draw interest from food giants such
as Nestle, General Mills, which distrib-
utes the Yoplait brand in the United
States, Asian food groups and private
equity groups.
Lucien Fa, who had been with
Danone for 21 years, came on board
as chief executive in 2002. Following
a restructuring plan, the loss-making
Yoplait returned to profit.
stake through one of his funds, the
Audley European Opportunities
Master Fund.
Treger has agreed to sell 40 per
cent of his shareholding now for
cash, with the rest later subject to
him getting a higher offer from
another buyer.
If the sale of his entire holding goes
through at the current price he will
have netted £530m from an invest-
US CRIME
TWO members of imprisoned finan-
cier Bernard Madoff’s inner circle
were arrested on charges of helping
to conceal the largest financial fraud
in history, US prosecutors said yester-
day.
The indictments of former employ-
ees Jo Ann “Jodi” Crupi, 49, and
Annette Bongiorno, 62, brings to
eight the number of people criminal-
News 11
ment that cost only around £20m
three years ago.
Walter Energy has said it wants to
buy Western Coal for $11.50 a share,
valuing it at $3.3bn (£2.06bn), more
than any other Aim company.
Western Coal says it sold three mil-
lion tonnes of coal last year but
expects to get to six million tonnes by
this year. It is being advised in the UK
by Nick Wells at Cenkos Securities.
PwC sells
remaining
Rok units
▲
CONSTRUCTION
BY TOM DE CASTELLA
ADMINISTRATORS have been forced
to break up the remainder of trou-
bled housing group Rok after a sole
buyer failed to materialise.
Just 500 jobs out of a workforce of
3,800 look set to be saved after
PriceWaterhouseCoopers (PwC)
found buyers for only parts of the
firm.
PwC said that it had sold parcels of
the construction and social house
building division to Mansell
Construction Services, a subsidiary
of Balfour Beatty, saving 381 jobs.
The reprieved section is made up
of construction operations in Milton
Keynes, Gatwick and Heathrow and
the social house building businesses
based in the South West and North
West of England.
In a further development, sources
close to housing maintenance firm
Mears Group, claimed that it was
saving more than 100 jobs in the
South West.
But the majority of the firm’s
employees are being made redun-
dant after earlier expressions of
interest to buy the whole group col-
lapsed.
PwC are retaining a team of 200
people across the group to help wind
up the business but these jobs will
go once the parent group closes.
According to PwC, Rok which built
and maintained social housing, was
a casualty of public sector cuts and
the construction slump.
PwC Jeremy Webb joint adminis-
trator said: “We are delighted that
we have been able to secure a sale of
part of the business hence preserv-
ing employment for 381 people.
“This is tinged with disappoint-
ment that there was not sufficient
interest in the other parts and hence
the redundancies that have been
made today.”
ly charged since the December 2008
revelation of Madoff’s multibillion-
dollar decades-long fraud.
Hours after the two women were
arrested at their homes, Manhattan
US attorney Preet Bharara hinted at
more arrests and criminal charges in
the case.
The fraud shook investor confi-
dence in market regulators who
missed Madoff’s epic swindle despite
repeated warnings.
 12 News
BA wins appeal in cargo case
▲
AVIATION
BY KATIE HOPE
BRITISH Airways (BA) yesterday won a
high court battle to prevent hundreds
of air cargo customers suing it in a
US-style class action lawsuit.
Two UK flower importers that sued
BA in 2008 cannot represent all direct
and indirect customers of the carrier,
because there was no way to know if
they had the same interest in the
case, the Court of Appeal in London
ruled yesterday.
Justice John Mummery concluded
the customers’ request for a so-called
representative action was “fatally
Chaucer aims
to grow car
insurance arm
▲
INSURANCE
BY STEVE DINNEEN
INSURER Chaucer will expand its UK
motoring operations as part of an
ambitious new growth strategy.
It says the push into motoring
insurance will involve a “significant”
presence on price-comparison web-
sites. Chaucer wants to balance its
exposure to the catastrophe business,
which offers high returns but high
volatility, with a greater input to the
lower-risk motoring sector.
However, the firm says its core
business remains the 27 specialist
London classes, including the new
international division, and the UK
division. It says it aims to become a
“top three dedicated Lloyd’s busi-
ness.” It is currently number six.
It will also develop a new global
energy business, taking advantage of
its energy, nuclear and engineering
expertise.
The company has targeted an over-
all return on equity of 12 per cent and
a reduction in its combined ratio of
two per cent.
Total premium rate increases of 2.7
per cent are forecast for this year after
premium income for the first three
quarters rose more than four per cent
Weir snaps up American Hydro Corp to Melrose hires Rothschild
boost its presence in renewable energy to sell die-cast metal firm
▲
ENERGY
BY MARION DAKERS
ENGINEER Weir Group has snapped
up an American firm that makes wind
turbines and hydro-electric power sta-
tions.
The Glasgow-based group refused to
say how much it is paying for
American Hydro Corporation, which
has revenues of £27m and assets
worth £18m.
Weir also said it would invest £6m
in a new Canadia service centre, to fur-
flawed.”
The companies, which claim they
suffered a loss as a result of the air-
line’s involvement with a global car-
tel which fixed the price of air cargo,
had wanted to bring a class-action
suit on behalf of around 200 compa-
nies.
BA pleaded guilty in the US three
years ago to being involved in the car-
tel and was fined $300m for its role in
the separate conspiracies to fix both
cargo rates and passenger fares.
Last week, BA alongside ten other
airlines was fined €104m by the EU
after an investigation into the air
cargo cartel.
to £677m.
Bob Stuchbery, chief executive,
said: “A key focus of the management
team over the past few months has
been to ensure we have the strategy
and resources in place to make the
most of our core strengths as a busi-
ness going forward.
“With the launch of our new strate-
gy, we firmly believe we are now bet-
ter positioned to meet the developing
needs of our markets, to deliver a
superior return on capital and to
build enduring value for our share-
holders.”
Chaucer has staged a strong recov-
ery after a torrid period of natural dis-
asters which included the Chilean and
Haiti earthquakes, European wind-
storm Xnthia and floods in Australia.
ANALYSIS l Chaucer
51 p
50.50
49
18 Nov
47
45
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
ther boost growth in North America.
American Hydro has had a tie-up
with Weir over the past five years and
also worked with the company on
hydro projects in Scotland during the
1990s.
Keith Cochrane, chief
executive of Weir
Group, has worked with
American Hydro on
various tie-ups before
BA, which could still face individ-
ual claims, said in a statement: “We
will continue to contest every class
action brought by cargo customers.”
ANALYSIS l British Airways
p
300 272.90
18 Nov
280
260
240
220
23 Aug 13 Sep 1 Oct 21 Oct
New station designs were unveiled for Crossrail yesterday
Weir’s chief executive, Keith
Cochrane, said: “Hydro-power is the
world’s largest source of renewable
energy.”
He added: “Combined with
American Hydro, we have the engi-
neering depth and skills to accelerate
our development in established hydro
markets throughout the Americas and
Europe”
“Weir has worked with American
Hydro before, so knows the business
well,” said RBS analyst Andrew
Douglas.
Wealthy Europeans pile
into London property
▲
PROPERTY
CASH-rich Europeans are rushing to
invest in prime property in one of
London’s most expensive postcodes,
in a bid to protect their money amid
growing fear over the stability of the
euro, according to property firm
Sandfords.
The firm says cash-rich individuals
from Europe currently account for 60
per cent of property purchases in
London’s W1 postcode.
10 Nov Ireland and Portugal’s mounting
▲
MANUFACTURING
BRITISH manufacturing buyout firm
Melrose said trading was slightly
ahead of its own view and that rev-
enue visibility remained healthy as
orders were increasing.
Melrose, which has grown by buy-
ing underperforming businesses, said
it was confident that the year would
end strongly and provide a good base
for 2011.
The company’s Dynacast business,
which makes die-cast metal parts, is
CITYA.M. 19 NOVEMBER 2010
debt problems and the potential
impact on the value of the euro have
led to a surge of interest from buyers
keen to move some of their wealth
into London prime property,
Sandfords added.
Around a quarter are looking to
make London their primary resi-
dence, while the rest are purchasing
as a means of diversifying their
wealth and seeking protection from
the turbulence in the Eurozone.
Properties between £1.5m and £4m
are selling in seven days on average.
Station plans
for Crossrail
are unveiled
▲
TRANSPORT
LONDON Mayor Boris Johnson yester-
day unveiled new station designs for
Crossrail.
Johnson showed pictures of eight
new Crossrail stations, five of which
are underneath Central London.
The stations feature wide plat-
forms, escalators and lifts to ease con-
gestion.
All stations will also have step-free
access to platforms.
Speaking at the event, Johnson said
that Crossrail will form the backbone
of London’s rail infrastructure.
He said: “As Crossrail moves from
the drawing board to reality we can
see the breathtaking benefits it will
bring to our city.”
Rail minister Theresa Villiers, also
at the event, said Crossrail will add 10
per cent to London’s rail capacity, and
move more workers into the City.
“[Crossrail] will create thousands of
jobs and potentially generate up to
£50bn for the UK’s GDP,” Villiers said.
The £16bn project will bring pas-
senger trains under central London.
The line, running from east-to-west,
has direct connections between the
City and Heathrow, London City
Airport, and Eurostar rail services at
Stratford. It will also run to Canary
Wharf.
The station designs are displayed
until 8 December at the Building
Centre, near Tottenham Court Road
Underground station.
expected to post second-half operat-
ing profit similar to first half levels, it
said in a statement.
Melrose plans to sell Dynacast for a
price expected to be more than
£350m. It has hired Rothschild to
advise on the sale.
Dynacast accounted for about a
fifth of Melrose’s total revenue for the
six months to the end of June.
Melrose shares, which have more
than doubled in value in the year to
date, closed 4.9 per cent lower at
288.6p yesterday.
CITYA.M. 19 NOVEMBER 2010 News 13

Close Brothers
Investec sells reports solid
its Rensburg start to year

funds division
BANKING

▲
CLOSE Brothers said overall perform-
ance during the first quarter was
solid yesterday, driven by good loan
book growth on continued demand
for its specialist lending services.
The merchant bank said its loan
book stood at £3.1bn at the end of
▲

BANKING months to 30 September, up 5.6 per October compared to £2.9bn three

BY TOM DE CASTELLA AND MATTHEW WEST cent from £215.9m a year earlier. months earlier, an increase of seven
Excluding a £46m profit made in the Donal Kinsella said he had been made a laughing stock by the allegations per cent. It said it also remained posi-
INVESTEC, South Africa’s fifth-largest same period last year on the repur- tive about the outlook for the full

Naked mining director

bank, is selling Rensburg Fund chase of debt, profits were 34 per cent financial year.
Management (RFM) for £45m, it said higher. It added net interest income However, Close said its bad debt
yesterday as it unveiled a six per cent totalled £321.17m, compared with ratio grew slightly compared to the
hike in underlying operating profit. £297.36m a year earlier. Meanwhile, first six months of the year due to a

wins €10m libel case

Franklin Templeton has entered
into a conditional agreement to
acquire RFM from Investec, which
manages about £880m in UK equities,
and is a small part of Rensburg
Sheppards, which was bought earlier
in the year by Investec.
bad debt charges totalled £122.85m, problem property portfolio although
compared with £134.29n a year earlier. it said it expected its bad debt ratio to
The investment bank and asset be lower by the end of the 2011 finan-
manager said the regulatory environ- cial year.
ment remained challenging, but activ- The bank’s asset management divi-
ity levels were starting to improve. sion made a small loss as it continued
MINING The jury accepted the married to invest for future growth, particu-
▲

RFM chief executive Alex
Brotherstone said the deal would give
the firm’s fund managers global distri-
bution opportunities.
But he was unable to give details of
his own future: “I’m keen to stay
around and will work very closely with
Jamie to see how we can expand. At the
moment I remain joint chief executive
until the group is integrated”.
Meanwhile, Investec said operating
profit totalled £228.15m in the six
ANALYSIS l Investec BY STEVE DINNEEN father of six’s explanation that he larly in private clients. Total funds
p was prone to sleepwalking, did not under management increased 14 per
507.00
520 18 Nov A MINING director was yesterday wear pyjamas and had been drinking cent to £8.5bn at 31 October 2010,
awarded €10m (£8.5m) after a judge whilst taking painkillers. The inci- compared to £7.4bn three months ear-
found he had been defamed by false dent took place on a work visit to lier reflecting the acquisition of the
500
allegations he made inappropriate, Mozambique. Chartwell Group and market move-
naked advances to a work colleague. Kinsella argued the incident had ments.
480 Donal Kinsella, a director at made him a laughing stock after he Close Brothers said its securities
Kenmare Resources, had been was asked to resign as chairman of division had recorded sound perform-
460 accused of making three trips to the the firm’s audit committee. ance although its derivatives trader,
door of a female fellow director late at He took particular exception to a press Mako, had been subdued due to lower
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov night. release which he said was suggestive. volumes and volatility.

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 14 News CITYA.M. 19 NOVEMBER 2010

Roadworks action demanded AMEC wins North Sea oil

to speed up its consultation on road- centrate the minds on cash and
rig engineering contract
▲

TRANSPORT
works disruption and to get on with a reduce the capital’s cones, chaos and
BY JULIET SAMUEL consultation on lane rental that was congestion.”

BAA CHAIRMAN Sir Nigel Rudd has
added his name to a list of nine signa-
tories to a letter urging the govern-
ment to stop dragging its feet on
roadworks policy in London.
The letter, sent out by the office of
London Major Boris Johnson, was
today delivered to transport secretary
Philip Hammond and warns that
there is still too much disruption on
the capital’s roads caused by road-
works with just two years to go until
the Olympic games.
The letter calls on the government
meant to begin in July.
It says that Hammond should
“urgently approve regulations that
would mean utility companies could
be charged for digging up the capi-
tal’s busiest roads at the busiest
times”.
Automobile Association president
Edmund King has also signed the ini-
tiative. He said: “84 per cent of
Londoners back tougher penalties for
utility companies that dig up the
roads without permission. An effi-
cient lane rental system would con-
The letter claims that roadworks
cost London £1bn per year and are at
the root of 38 per cent of the city’s
traffic jams. Data from public.lon-
donworks.gov.uk shows that there
have been 22 active roadworks caus-
ing disruption in the City of London
in the last two weeks alone.
The other signatories to the letter
include Jules Pipe, the chairman of
London councils, Sue Terpilowski of
the Federation of Small Businesses,
and James Drummond, chief execu-
tive and president of Invensys Rail.
▲
ENERGY
ENGINEERING firm AMEC’s shares
gained 2.5 per cent yesterday after the
group won two contracts on oil and
gas rigs in the North Sea.
Oil refiner ConocoPhillips has hired
AMEC for engineering and procure-
ment work on its existing Judy plat-
form around 240km from the
Aberdeen coast, as well as for initial
work on its new Jasmine gas reservoir.
The value of the contract win has
not been disclosed.
ConocoPhillips anticipates produc-
tion on the Jasmine platform will
start in the fourth quarter of 2012.
AMEC shares closed 28p up at
£11.54, its highest close in more than
a year.
“I am delighted that our long track
record of delivery of major and com-
plex projects for ConocoPhillips,
including on this field itself, has been
recognised through this significant
contract award,” said John Pearson,
managing director of AMEC’s
European & West African business.

QinetiQ’s cost
National Grid
HERITAGE HITS MORE OIL IN IRAQ

cutting helps
dividend up as boost results
profits soar

▲
DEFENCE
DEFENCE firm QinetiQ saw its shares
soar yesterday after it posted a 14 per
cent rise in first-half profit on
stronger sales and better cash genera-
electricity transmission expected to tion.
▲

ENERGY
BY JULIET SAMUEL
NATIONAL Grid saw six-month pre-
tax profit surge 45 per cent to £938m,
with operating profit growing in
every part of the business.
The good performance is in part
weather-related, with a warm sum-
mer in the US leading to high use of
air conditioners on the east coast
where National Grid’s interests are.
Six-month earnings per share (EPS)
have increased five per cent to 20.3p
with the £2.3bn rights issue complet-
ed in June. As a result of the earnings
growth, National Grid increased its
interim dividend by eight per cent to
12.9p a share. The firm, which owns
and operates electricity and gas net-
works in both the UK and US, said
that profits were flattered somewhat
by earnings from previous periods
being carried over into the current
results, with this effect accounting
for about £200m of pre-tax profit.
Chief executive Steve Holliday told
City A.M. that the firm is also on track
with its £3.7bn investment pro-
gramme, with most money being
spent in the UK. It is planning for a
seven per cent overall growth in its
assets over the next five years, with
see 13 per cent growth.
Holliday said: “We are renewing
assets that are old and connecting
new generators – lots of them wind
and nuclear. And we have to reinforce
the system so that the power can flow
from where they’re located to where
you and I live.”
National Grid’s investment pro-
gramme has been particularly affect-
ed by Britain’s increasing reliance on
imported gas, meaning that energy
has to be transported from different
points of entry than used to be the
case. As a result, it is expanding its
facility on the Isle of Grain off the
coast of Kent by a third, which will
make it big enough to supply 20 per
cent of the UK’s gas demand.
ANALYSIS l National Grid
590
p 587.50
18 Nov
570
550
530
23 Aug 13 Sep 1 Oct 21 Oct
Sales at the defence technology
firm’s global products business,
which accounts for around a third of
group revenue, grew 65 per cent, driv-
en by demand for its Q-NET vehicle
products to support operations in
Afghanistan.
QinetiQ reported underlying pre-
tax profit of £51.6m for the six
months to the end of September, on
revenue seven per cent higher at
£865m.
Its shares, which had fallen more
than a third this year after it lost a
key Ministry of Defence training con-
tract, closed up 13.6 per cent at
112.5p, valuing the floated portion of
the firm at £647.5m.
“The overall beat comes from the
lumpy products business, mainly
from the Q-Nets order which the mar-
ket had underestimated,” Bank of
America analyst Celine Fornaro said
in a research note, adding the compa-
ny’s 231 per cent cash conversion rate
was a “key positive”.
QinetiQ, which was spun off from
ONE of Heritage Oil’s wells in Iraq has hit a bigger-than-expected hydrocarbon deposit, the Ministry of Defence in 2001, said
the firm said in a trading statement yesterday. Shares closed down 2.3 per cent at 367p, it had cut net debt a quarter to £327m
however, after no update was given on the company’s ongoing tax dispute with the over the past 12 months, adding cost
Ugandan government. The company has set aside around $400m (£249m) in relation to cuts and self-help measures were
10 Nov
the tax quarrel linked to its sale of assets to former partner Tullow. Picture: REUTERS starting to bear fruit.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Marion Dakers in association with

Man Group
The alternative asset manager has hired Jenny
Morton as head of consultant relations, starting
on 22 November. She joins from Putnam
Investments, where she was head of global
consultant relations, and has also held senior
roles at Fidelity, Boston Partners and the
Boston Company. Morton will report to Paul
Dackombe, head of institutional clients UK, and
will be responsible for leading Man’s initiative
to build relationships with UK consultants.
Thompson as a senior consultant in its
Mercer health and benefits business. Thompson
The consultancy has taken on Simon joins from Bupa, where he was a com-
mercial manager leading the client rela-
tionship team in the south of the UK.
Before this he was UK and Ireland sales
manager for Europ Assistance Holdings.
He has spent the last ten years working
on healthcare and benefits.
F&C
Michael Sell is set to join the F&C
emerging equities team, following the
fund manager’s recent appointment as
group manager for the Board of
Traditional Funds’ global emerging mar-
ket and emerging Asia funds. Sell, who
has managed the Asian fund for previ-
ous manager Nevsky since January
2008, will join F&C on 1 February.
Smith & Williamson
The investment manager has appointed
David Amplett-Lewis as a director to
grow its discretionary fund manage-
ment business with independent finan-
cial advisers (IFAs). He has 11 years of
experience with IFAs and investment,
working most recently at Deutsche
Bank within private wealth manage-
ment as an investment director. Also
joining is Amanda Keyton, who will be
working alongside Amplett-Lewis to
promote the firm’s discretionary wealth
management services to the intermedi-
ary sector. The firm has also recently
hired Nick Richards as a business devel-
opment director, supporting the private
client side of the business.
HIG Europe
The European branch of the private
equity firm has hired Neil McIlroy as an
associate in its London office, bringing
the company’s UK investment team to
25. McIlroy joins from European buy-
out firm Cinven, where he spent four
years in the industrial and healthcare
investment teams. Before this he
worked at Morgan Stanley within the
investment banking division.

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
CITYA.M. 19 NOVEMBER 2010 News 15

Glencore paves way

for £10bn flotation
COMMODITIES named. Five-year credit default swaps
▲

BY HARRY BANKS Switzerland-based Glencore tightened 30 basis points to 215

PRIVATELY held commodities giant
Glencore is considering listing in
the first half of next year, in an IPO
that could raise around £10bn.
Glencore, the world’s biggest
commodity trader, has been prepar-
ing to go public after issuing a
$2.2bn (£1.bbn) convertible bond
last year.
The group, which yesterday post-
ed a strong jump in nine-month
profit, is considering an IPO that
would likely launch off the back of
full-year results in March or April,
according to two people familiar
with the matter who declined to be
declined to comment.
While no final decision has been
made on the size of the offering, it
could raise around £10bn, one
source said, making it one of the
biggest London flotations on record.
The IPO could to be a dual listing
in London and Hong Kong, another
source said. Morgan Stanley,
Citigroup and Credit Suisse are
expected to be involved in the list-
ing.
In the credit markets, the cost of
insuring Glencore’s debt against
default fell, which analysts said was
sparked by the news about possible
timing of the IPO.
basis points, the tightest levels since
May.
“Whilst we wouldn’t expect the
proceeds to be put towards debt
reduction, we consider the
increased transparency and addi-
tional funding source should pro-
vide comfort to credit investors,”
analyst Matthew Robbins at RBS
said Another analyst said an IPO of
Glencore would likely not take place
until it completed a spin-off of its
gold assets. In August, Glencore
unveiled plans for spinning off or
listing its Kazzinc gold assets, which
could be worth more than $5bn,
next year.

Champion Trader - NEWS | IN BRIEF

Day 4 l Week 2
Lagardere aims for Spring IPO
Hard day on the markets for most and we have a new leader jasonkhan who lost French media group Lagardere will sell
a little but managed to take the top spot but a good performance from rhona45 its stake in pay-TV group Canal+ France
and shidong who have increased their account values and moved into second and in an initial public offering (IPO) in
third. The weekly prize closes at 5.30pm today for the greatest account increase spring 2011, Lagardere's chief financial
over the week so plenty to play for. officer Dominique d'Hinnin said yester-
day. D'Hinnin told an investor conference
It is free with £8,000 prize pot still available. in Spain that Canal+'s majority owner
Vivendi had never responded to a price
proposal Lagardere had sent early this
User Name Account Value % Difference year, and there had been no negotia-
tions.
1 jasonkhan £132,186.03 1222
2 rhona45 £113,451.74 1035
Ex-car czar Rattner sued by NY
Steven Rattner, the former Obama
administration auto industry czar, was
3 shidong £104,381.03 944 yesterday sued by New York’s attorney
general Andrew Cuomo for allegedly
4 alonsove £95,890.39 859 paying kickbacks to win investments
from the state's public pension fund.
5 sbwilliams £89,750.21 798 Rattner separately settled a related US
Securities and Exchange Commission
6 Gekko1981 £73,845.76 638 (SEC) civil lawsuit, agreeing to pay
$6.2m (£3.9m) and accept a two-year
7 urosbric3 £73,486.00 635 ban from working with an investment
adviser or broker-dealer. That accord
8 TheMysteryTrader £71,150.75 612 requires court approval. Cuomo and the
SEC alleged Rattner entered quid pro
9 ballyvirane £45,335.20 353 quo arrangements with the New York
State Common Retirement Fund to
10 dadaas £40,969.11 310 obtain $150m in investments for his pri-
vate equity firm, Quadrangle Group, in
To register and the full standings, visit www.intertrader.com/champion 2005 and 2006.
 16 Consumer News
Arcadia looks
overseas to
grow profit
RETAIL
▲
BY JOHN DUNNE
ARCADIA, the owner of retail chains
including Topshop and BHS, is plan-
ning further international expan-
sion
after posting a 6.4 per cent rise in
pre-tax profit to £213.2m for the year
to the end of August yesterday.
Arcadia Group’s operating profits
increased 10.4 per cent to £279.6m in
the year, on sales up 40 per cent to
£2.8bn.
Total sales were £2.8bn with sales
at UK stores open at least a year up
1.3 per cent, and up one per cent in
the first 11 weeks of the new finan-
cial year.
However, UK like-for-like sales
growth at the group – which also
includes Miss Selfridge, Burton,
Coleen Rooney
launches debut
clothes line
▲
RETAIL
COLEEN Rooney yesterday launched
her debut fashion collection with the
online and home shopping retailer
Littlewoods.
Rooney’s collection goes on sale in
December and is “inspired by fashion
icons including Jackie Onassis”.
Floor-sweeping maxi dresses, neat
shifts and strapless prom-style dresses
feature in the range. Rooney said: “I
am often asked about the clothes that
I wear and my sense of style. By creat-
ing a range myself I hope to make my
favourite looks available to all.”
Dorothy Perkins, Wallis and Evans –
has declined in recent weeks.
Sir Philip Green said he was eyeing
South Africa, Australia and Asia to
expand his chains, which include
Top Shop and BHS.
Arcadia already has 2,542 owned
and 579 franchised outlets in 37
countries. The group has just agreed
to open five stores in Brazil, and is in
discussions to set up in South Africa
and Australia.
Green said: “We also have get to go
to Asia. We’ve got to sit down and
draw up a business plan. I remain
cautious about the year ahead, with
increases in VAT, rates, raw materials
and some wage inflation. But I look
to grow the business both at home
and overseas.”
The company said that Green will
not receive a dividend.
Spar MD to move
on after nine years
RETAIL
SPAR UK managing director Jerry
Marwood has announced he is set to
leave the company after nine years in
charge.
He will move on next summer but
is yet to reveal his future plans.
During his time at Spar, Marwood
has overseen rapid company growth.
The company has a 2,583-strong
network of supermarkets in the UK,
all of which are independently owned
and managed, and it recently report-
ed a 3.1 per cent year-on-year increase
in sales for the three-month period to
Arcadia boss Sir Philip Green is planning international expansion
the end of July.
By category, sales of own-brand
products grew by 4.4 per cent, while
fresh food and wine sales increased
by 3.9 and 3.5 per cent respectively.
Spar said in statement : “Jerry has a
desire to move on to seek new chal-
lenges and we have been working
with him to map out a process which
would ensure a smooth transition.”
Marwood said: “I still have a num-
ber of exciting business initiatives to
implement, a replacement to find
and a handover to complete – all of
which will take some time.”
Pic: Micha Theiner
SABMiller sales boosted
by its emerging markets
▲
CONSUMER
A STRONG recovery in emerging mar-
kets helped brewing giant SABMiller
beat forecasts with a 16 per cent rise
in half-year earnings, while the Miller
Lite brewer’s markets in Europe and
North America struggled.
The world’s second biggest brewer,
which earns more than 80 per cent of
its profits from emerging markets,
said Africa and Asia had fully recov-
ered while high unemployment in
mature markets was holding back
any upturn in beer sales.
Chief executive Graham Mackay
said: “The outlook is extremely
mixed.
CITYA.M. 19 NOVEMBER 2010
John Lewis in
sales surge as
Xmas nears
RETAIL
▲
JOHN Lewis said sales had risen by
11.3 per cent over the last four days –
driven by a strong performance from
fashion and helped by the colder
weather.
The department store said the
week had begun well as consumers
started thinking about buying
Christmas gifts.
Lesley Ballantyne, John Lewis direc-
tor of operational development said:
“This week is shaping up to be a really
strong week, by last night we were
11.3 per cent up on last year.
“All areas are very positive but fash-
ion particularly stands out, where
customers are taking advantage of
our beautiful winter ranges in
women’s cashmere.”
Sales of fleece robes jumped 118 per
cent during the four days compared to
last year, while sales of slippers rose 15
per cent, and Ugg earmuffs 112 per
cent. Watch sales were up 25 per cent.
The retailer is considered a bellwether
for the consumer climate on the high
street and issues regular trading
updates in the run-up to Christmas.
“Emerging markets are fine
although some have been hit by tax
but developed markets in Europe and
North America are struggling.”
The brewer of Peroni and Grolsch
beers said it would continue to bene-
fit from lower raw material prices
such as for barley to the end of its
March 2011 year and then see a small
rise the following year as higher grain
prices come through.
“The market seems to have
assumed that SABMiller is better
placed than some competitors to deal
with the increase in some commodity
costs,” said Matthew Webb at brokers
JP Morgan Cazenove.
CITYA.M. 19 NOVEMBER 2010
Halfords refinances as
earnings drive forward
▲
RETAIL
BY JOHN DUNNE
HALFORDS said yesterday it had refi-
nanced its debt arrangements as it
posted a rise in first half profit.
The cycle and car parts retailer saw
pre-tax profit rise 12.8 per cent in the
six months to 1 October.
Halfords said it had grown its mar-
ket share in its more expensive cycles
range as more people invest in bikes
to ride to work.
The company also said it had seen a
slight bounce in satnav sales after
they had plummeted earlier in the
year.
Halfords said its Autocentre devel-
opment plan was on track with
rebranding of all centres to be com-
pleted by early 2011.
Meanwhile net debt stood at
£109m at the end of the period with a
new debt facility agreed with the
Consumer News 17
company’s banks.
Chief executive David Wild said:
“We are pleased that we have had an
agreement with our banks that is pos-
itive for us.
“This has been a big period of
change for the company with new
distribution arrangements and the
re-branding of our servicing
Autocentres. We think we have the
right stock for Christmas which
should give us another boost.” Halfords chief executive David Wild is bullish on 2011 Picture:Micha Theiner/ CITY A.M
 18 News CITYA.M. 19 NOVEMBER 2010

Crozier cool BlackBerry claims

on restarting
ITV dividend
Playbook is more
powerful than iPad
▲

MEDIA
BROADCASTER ITV will keep consid-
ering the possibility of paying a divi- TECHNOLOGY possible contender for the iPad’s

dend given its newly strong balance
sheet, but investing in programmes is
more urgent, its chief executive said
yesterday.
Adam Crozier, who took over in
April, said ITV needed to make more
of its own content and technology to
profit from coming web distribution
channels such as Google TV, Apple TV
or YouView in Britain.
ITV makes only 45 per cent of its
own programming, or 17 per cent
excluding soap operas Coronation
Street and Emmerdale.
To cut costs, ITV ran down invest-
ments in content during the reces-
sion, buying in programmes and
relying on mass-audience shows like
the X Factor to attract advertisers.
“We have some investments we
need to make, and we've been upfront
about that,” said Crozier.
▲
BY STEVE DINNEEN
BLACKBERRY maker Research in
Motion (RIM) yesterday fired a warn-
ing shot to Apple when it released a
video claiming to show the superiori-
ty of its tablet computer.
RIM is set to launch its rival to the
all-conquering iPad in the second
quarter next year. Named the
Playbook, it will attempt to lure users
with its ability to run Flash videos,
which Apple has blocked.
The video runs through a series of
comparison tests with a BlackBerry
Playbook and Apple iPad, which
demonstrate the speed of the
PlayBook Browser, its support for rich
Flash content, and the performance
of open web standards like HTML 5 on
the PlayBook.
RIM’s Playbook (below) will go head-to-head with Apple’s iPad Pictures: REUTERS/ REX On paper the Playbook looks like a
crown.
Its processor and RAM are both
superior, despite its smaller size. This
would be good news for users dealing
with a lot of video or multi-tasking
between apps.
It also appears to have been posi-
tioned closer to BlackBerry’s core
enterprise market, rather than the
consumer-facing iPad, which could
reel in large numbers of business-
focused users.
However, analysts say the product
has come late to a market Apple’s
tablet computer has already taken by
the scruff of the neck.
In Apple’s fourth fiscal quarter, the
second quarter that the iPad has been
available, the company sold 4.2m
units. Analysts also see Google
Android-powered devices becoming
increasingly important.

iPhone users to see

adverts inside apps
TECHNOLOGY and iPod touch users.” apps have now been downloaded
▲

BY STEVE DINNEEN
iPhone users in the UK will soon
find adverts inside apps they down-
load as Apple rolls out its iAds plat-
form outside the US.
The platform allows application
developers – and Apple itself – to
make money from advertising con-
tained within apps.
It is set to launch in the UK and
France in December after attract-
ing a host of big money advertisers
in the US.
European launch partners will
include L’Oréal, Renault, Louis
Vuitton and Absolute Radio.
Apple describes the technology
as a “powerful new way for adver-
tisers to reach millions of iPhone
The launch of iAds heralded the
start of a major advertising war
between Apple and Google. At the
launch of the iPhone 4, Apple chief
executive Steve Jobs claimed iAds
would help Apple to control 48 per
cent of the mobile advertising mar-
ket by the end of 2010 – a clear
swipe at Google’s dominance.
The emergence of iAds has pro-
vided Apple with a lucrative new
revenue stream. An estimated 5bn
Steve Jobs believes
iAds can help Apple
capture almost 50
per cent of the
mobile ad market
through the App Store, with Apple
pocketing a third of the cover price.
Now it will also be able to cream off
a premium from ads.
iAds, which is built into iOS 4,
lets users stay within their current
app while engaging with an the
advertisement.
Apple says the platform aims to
“combine the narrative quality of
TV ads with the interactivity of dig-
ital for something entirely new”.
Marc Menesguen, L’Oréal’s Head
of marketing said: “We’re thrilled
by the quality, the interactivity and
the depth of iAd’s user experience,
giving us an unparalleled opportu-
nity to reach and serve the most
engaged and discerning customers
at the digital forefront of beauty.”

Reed Elsevier confirms gloomy

outlook as subscriptions remain weak
▲

PUBLISHING
REED Elsevier yesterday reaffirmed
its outlook for a slightly lower oper-
ating profit margin this year as
subscriptions to its scientific and
legal publications remained weak.
The Anglo-Dutch company has
been slow to respond to economic
recovery as corporate subscriptions
come up for renewal only periodi-
cally, and are worth less as firms
employ fewer staff – a fact that pro-
tected it in the early stages of the
recession.
It has also been investing heavily
in its Lexis Nexis legal business in
the United States, where it is work-
ing to reverse a long decline in
market share against Thomson
Reuters’ Westlaw.
A company spokesman said: “A
modest reduction year on year in
adjusted operating margin is
expected, due to a weak revenue
environment and increased invest-
ment in legal markets. Any sus-
tained recovery is expected to be
gradual and remains dependent on
economic conditions.”
Reed said it was making good
progress in developing legal prod-
ucts for the US market, although
subscription renewals continued
to reflect low levels of legal activity.
This week, Reed agreed to sell
Lexis Nexis Deutschland to Wolters
Kluwer, effectively ceding the
German market to its Dutch rival,
which has invested there for a
quarter of a century.
Reed said yesterday its exhibi-
tions business – the world’s largest,
which includes the annual mip-
com entertainment fair and the
Vienna Auto Show – was stabilis-
ing. It expects to grow this division
over the next year.
CITYA.M. 19 NOVEMBER 2010 News 19

Private equity BEST OF THE BROKERS

ANALYSIS l Mark & Spencer MARKS & SPENCER
SEC probes Citi
on mortgage
battle looms
Execution Noble has upgraded the super-
440 p 390.20
market to “buy” with an upgraded fair

400
18 Nov
value price of 475p, following its research
on M&S customers. The broker sees the
securities deal
firm’s new strategy as a real driver for

for Danish ISS

sales growth, with the food business as a
360
particularly strong opportunity. It adds BANKING

▲
that the brand could also cash in on the THE US Securities and Exchange
homewares market, which is ripe for con- Commission (SEC) is investigating
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov solidation. Citigroup’s role in a $1bn mortgage-
backed securities deal in 2007.
ANALYSIS l Trinity Mirror TRINITY MIRROR Citigroup “improperly pushed an
130
p 74.50 Altium Securities rates the media group independent manager to put specific
18 Nov “buy” with a reduced target price of 145p. assets” in a collateralised debt obliga-
M&A
▲

comment or had no immediate com- tion (CDO) it created in February

BY HARRY BANKS
A BLACKSTONE-led quartet and two
rival teams are readying bids for ISS,
the $7bn (£4.4bn) Danish cleaning
giant as Europe’s biggest post-crisis
buyout heats up.
The owners of ISS – Goldman Sachs
Capital Partners and Sweden’s EQT –
are exploring an initial public offer-
ing (IPO) of the company or a sale of
it. Blackstone Group, the buyout titan
that is raising a near-$15bn fund, is
working with Bain Capital, Nordic
Capital and Clayton Dubilier & Rice.
CVC and Apollo Management are
also preparing a joint bid, while
Apax, which can draw on co-investors
such as Chinese and Singaporean sov-
ereign wealth funds, is working
alone.
Indicative offers for ISS, one of the
world’s largest facilities services
firms, are due next week.
The owners and all of the other pri-
vate equity firms either declined to
ment.
ISS yesterday reiterated it was
examining “strategic alternatives”
but declined to comment further.
A deal of this size will require big
equity cheques from new buyers,
hence the four-strong Blackstone
team. Purchasers might also draw on
a buoyant high-yield market and seek
to keep some of ISS’s big, existing
debt pile in place.
Citi, Goldman and Nordea are like-
ly to be among ISS’s key existing
lenders: the trio arranged a 23bn
crown (£2.6bn) refinancing in 2007,
Thomson Reuters Loan Pricing Corp
(LPC) data shows. ISS sees its main
peers as British security services
group G4S, French catering and serv-
ices company Sodexho, UK catering
services provider Compass Group and
Swedish security services Securitas
AB. Goldman and EQT will have to
weigh whether a deal, at perhaps a lit-
tle more than 40bn crowns will offer
a better return than an IPO.
The broker has trimmed its pre-tax profit
110
2007. The deal, which was backed by
forecasts for 2011 and 2012 by four and other CDOs that were backed by slices
eleven per cent respectively, following a of subprime mortgages, was man-
more cautious revenue outlook in last aged by Credit Suisse Alternative
90 Capital.
week’s management statement. Altium still
Citigroup said in a regulatory filing
views the shares as cheap, but remains earlier this month that it “continues
wary for future years until more concrete to cooperate fully in response to sub-
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov signs of recovery emerge. poenas and requests for information
from the Securities and Exchange
ANALYSIS l Keller Group KELLER GROUP Commission”.
BNP Paribas rates the construction firm Spokeswoman Danielle Romero-
660 p 546.00 Apsilos declined to comment on the
18 Nov “neutral” with a reduced target price of
specific probe yesterday but said in an
650p. The broker believes there is further email: “It’s been widely reported that
620 pressure on margins from continued slow there are ongoing industry-wide inves-
demand in North America and Europe, with tigations into CDO-related matters.”
the company forced to cut costs. However, Shareholders have also sued
580 Citigroup over its CDOs and other
it adds that Keller can maintain its dividend securities, claiming the bank know-
payments despite a 10 per cent earnings ingly misled them about the value of
per share shortfall, due to its recently- and risk related to the securities.
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov reduced net debt levels. A judge dismissed parts of the law-
suit earlier this month, but allowed
To appear in Best of the Brokers email your research to notes@cityam.com the investors to pursue some of their
CDO-related claims.

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 Markets&Investment 21

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 . . . . . . . . . . . . . . . . . . . . . . . .315.20 +6.20 328.30 246.90 Compass . . . . . . . . . . . . . . . . . .535.50 +6.00 574.50 399.30 Kazakhmys . . . . . . . . . . . . . . . .1470.00 +44.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .372.60* +4.90 397.00 307.60
3i Infrastructure . . . . . . . . . . . . . 118.40 +0.90 118.50 97.00 Cookson . . . . . . . . . . . . . . . . . . .521.50 +9.00 616.00 364.80 Kesa Electricals . . . . . . . . . . . . .159.90 –1.50 172.40 98.45 Schroders . . . . . . . . . . . . . . . . .1602.00 +24.00 1670.00 1096.00
A.B. Foods . . . . . . . . . . . . . . . .1080.00 +11.00 1113.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1438.00 +43.00 1540.00 735.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .246.80 +7.10 255.00 196.50 Schroders N/V. . . . . . . . . . . . . .1277.00 +23.00 1330.00 912.50
Aberdeen Asset Man . . . . . . . . . .177.70 +1.40 191.60 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .559.50 +1.00 573.50 401.70 Ladbrokes . . . . . . . . . . . . . . . . .130.70* –1.20 164.60 120.00 Scot. & Sthrn Energy. . . . . . . . . 1156.00 +8.00 1206.00 1006.00
Admiral. . . . . . . . . . . . . . . . . . .1573.00 +3.00 1721.00 1003.00 Davis Service . . . . . . . . . . . . . . .406.30 +6.30 442.30 356.00 Lancashire Hldgs . . . . . . . . . . . .633.50 +4.00 636.00 416.70 Scottish Mortgage. . . . . . . . . . . .649.00* +9.00 684.00 475.00
Aegis . . . . . . . . . . . . . . . . . . . . .135.10 +4.50 137.30 103.10 Debenhams . . . . . . . . . . . . . . . . .71.40 +2.00 88.90 51.95 Land Securities . . . . . . . . . . . . . .670.00 +1.50 724.50 543.00
Afren . . . . . . . . . . . . . . . . . . . . .127.20 +2.60 135.90 77.00 Derwent London . . . . . . . . . . . .1459.00 –4.00 1633.00 1183.00 Legal & General . . . . . . . . . . . . . .96.80 –0.50 107.50 69.05 SEGRO . . . . . . . . . . . . . . . . . . . .296.90 –1.10 383.00 244.00
African Barr Gold . . . . . . . . . . . .535.00 –4.50 685.00 520.50 Dexion Absolute . . . . . . . . . . . . .139.50 +1.30 148.00 131.20 Lloyds Banking Gp . . . . . . . . . . . .67.79 +1.39 79.15 45.30 Serco . . . . . . . . . . . . . . . . . . . . .556.50 –3.50 656.50 491.20
Aggreko . . . . . . . . . . . . . . . . . .1536.00 +31.00 1698.00 727.50 Diageo . . . . . . . . . . . . . . . . . . . 1193.00 +28.00 1240.00 988.00 Logica . . . . . . . . . . . . . . . . . . . .123.80 +1.30 149.10 100.80 Severn Trent . . . . . . . . . . . . . . .1435.00 +2.00 1468.00 981.50
Alliance Trust . . . . . . . . . . . . . . .355.50 +8.10 363.00 292.80 Dixons Retail . . . . . . . . . . . . . . . .25.80 +0.19 39.50 23.07 London Stk Exchange . . . . . . . . .747.50 +30.50 876.00 540.50 Shaftesbury . . . . . . . . . . . . . . . .435.80 –0.10 465.00 348.00
AMEC . . . . . . . . . . . . . . . . . . . . 1154.00 +28.00 1163.00 728.00 Domino’s Pizza . . . . . . . . . . . . . .519.00 +4.00 535.50 278.20 Lonmin . . . . . . . . . . . . . . . . . . .1775.00 +8.00 2198.00 1344.00 Shire. . . . . . . . . . . . . . . . . . . . .1543.00 +30.00 1545.00 1117.00
Amlin . . . . . . . . . . . . . . . . . . . . .383.20 –8.30 437.60 357.30 Drax . . . . . . . . . . . . . . . . . . . . . .373.20 +2.60 455.20 321.50 Man . . . . . . . . . . . . . . . . . . . . . .284.20 +3.90 368.70 199.60 SIG . . . . . . . . . . . . . . . . . . . . . . . 119.30 +6.40 142.10 89.55
Anglo American . . . . . . . . . . . .2958.00 +62.00 3069.00 2210.00 Dunelm . . . . . . . . . . . . . . . . . . . .497.70 +3.20 521.00 319.40 Marks & Spencer. . . . . . . . . . . . .390.20* +6.00 431.40 321.90 Smith & Nephew . . . . . . . . . . . . .592.00 +4.50 700.50 532.00
Antofagasta . . . . . . . . . . . . . . .1395.00 +30.00 1482.00 755.50 Easyjet . . . . . . . . . . . . . . . . . . . .450.00 +6.20 499.90 339.80 Meggitt . . . . . . . . . . . . . . . . . . . .323.90 +7.90 336.70 234.50 Smith(Ds) . . . . . . . . . . . . . . . . . .183.00 +1.90 185.90 103.00
Aquarius Platinum . . . . . . . . . . .351.40 +3.50 490.00 211.50 Edinburgh Inv Tst . . . . . . . . . . . .443.00* +6.80 466.80 345.50 Melrose . . . . . . . . . . . . . . . . . . .304.20 +29.30 306.80 160.00 Smiths . . . . . . . . . . . . . . . . . . . 1154.00* +22.00 1297.00 930.00
ARM Holdings . . . . . . . . . . . . . . .370.60 +10.00 419.50 150.60 Electrocomponents . . . . . . . . . . .262.10 +0.10 266.60 159.50 Mercantile IT . . . . . . . . . . . . . . .1007.00 +18.50 1029.00 822.50 SOCO Intl . . . . . . . . . . . . . . . . . .348.70 +2.90 510.00 287.40
Ashmore . . . . . . . . . . . . . . . . . . .361.60* +7.20 400.50 215.00 EnQuest . . . . . . . . . . . . . . . . . . .132.00 +3.40 138.50 87.35 Michael Page Intl. . . . . . . . . . . . .483.20 +10.20 507.50 326.00 Spectris . . . . . . . . . . . . . . . . . .1202.00 +13.00 1234.00 653.00
Ashtead . . . . . . . . . . . . . . . . . . .128.80 +3.80 135.60 61.25 Essar Energy . . . . . . . . . . . . . . .506.50 –0.50 566.50 358.50 Micro Focus . . . . . . . . . . . . . . . .323.90 –7.10 550.00 272.20
Astrazeneca . . . . . . . . . . . . . . .3062.50 +25.00 3389.50 2687.00 Eurasian Nat Res . . . . . . . . . . . .927.00 +22.00 1276.00 801.00 Millen & Copthorne . . . . . . . . . . .532.50 +11.00 585.00 329.20 Spirax-Sarco Eng . . . . . . . . . . .1746.00 +16.00 1888.00 1060.00
Atkins(Ws) . . . . . . . . . . . . . . . . .739.00 +12.00 801.00 549.50 Euromoney Inst Inv . . . . . . . . . . .675.00* +0.50 685.00 383.00 Misys . . . . . . . . . . . . . . . . . . . . .295.40 +4.40 300.00 196.60 Spirent Comms . . . . . . . . . . . . . .148.90 +0.90 158.30 90.45
Autonomy Corp . . . . . . . . . . . .1399.00 –11.00 2012.00 1319.00 Experian . . . . . . . . . . . . . . . . . . .744.50 –3.50 763.50 559.00 Mitchells & Butlers . . . . . . . . . . .347.30 +9.70 351.60 242.50 Sports Direct Intl . . . . . . . . . . . . .130.60 +2.20 154.30 89.85
Aveva . . . . . . . . . . . . . . . . . . . .1526.00 +24.00 1572.00 930.00 Ferrexpo . . . . . . . . . . . . . . . . . . .376.90 +3.30 401.60 175.00 MITIE . . . . . . . . . . . . . . . . . . . . .198.00 –5.80 245.90 187.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1164.00 +1.00 1190.00 660.50
Aviva . . . . . . . . . . . . . . . . . . . . .400.90* +3.90 428.70 290.20 FirstGroup . . . . . . . . . . . . . . . . .379.90 +2.40 428.40 331.20 Mondi . . . . . . . . . . . . . . . . . . . . .496.00 –9.50 562.00 304.70 St James’s Place . . . . . . . . . . . . .251.80 –0.30 298.00 203.40
Babcock International . . . . . . . . .530.00 –25.00 645.50 489.00 Foreign & Col Inv Tst. . . . . . . . . .294.70 +4.90 300.00 250.00 Monks Inv Tst . . . . . . . . . . . . . . .338.60 +5.50 349.70 265.00 Stagecoach. . . . . . . . . . . . . . . . .205.20 +1.20 226.10 144.10
BAE Systems . . . . . . . . . . . . . . .352.70* +4.90 389.90 288.10 Fresnillo . . . . . . . . . . . . . . . . . .1414.00 +68.00 1480.00 647.00 Morgan Crucible . . . . . . . . . . . . .242.60 +10.60 254.90 142.90 Standard Chartered . . . . . . . . . .1852.00 +37.00 1975.00 1316.50
Balfour Beatty . . . . . . . . . . . . . . .279.30* +1.00 304.80 228.60 G4S . . . . . . . . . . . . . . . . . . . . . .249.60 +0.70 285.70 238.70 Morrison Wm . . . . . . . . . . . . . . .280.00 +3.90 307.10 255.00 Standard Life . . . . . . . . . . . . . . .223.80* +1.80 238.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .277.95* +3.70 394.25 253.40 Genesis Emerging Mkts Fd . . . . .521.00 +8.00 542.50 383.00 Murray Intl Tst . . . . . . . . . . . . . . .906.00 +14.00 938.50 720.00 SuperGrp . . . . . . . . . . . . . . . . .1478.00 +29.00 1488.00 499.00
Barratt Development . . . . . . . . . . .75.65 +0.90 145.60 72.15 GKN . . . . . . . . . . . . . . . . . . . . . .191.60 +5.80 192.00 100.40 National Express. . . . . . . . . . . . .242.00 +4.90 261.30 164.80 TalkTalk . . . . . . . . . . . . . . . . . . .149.40 –0.80 154.50 106.60
BBA Aviation . . . . . . . . . . . . . . .196.80 +0.80 220.00 145.90 GlaxoSmithKline . . . . . . . . . . . .1257.50* +14.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .587.50 +3.00 607.65 474.80 Talvivaara Mining . . . . . . . . . . . .545.00 +16.00 597.00 341.40
Berkeley . . . . . . . . . . . . . . . . . . .801.00 +11.00 917.50 735.00 Great Portland Estates . . . . . . . .332.10* +2.10 368.60 265.40 Next . . . . . . . . . . . . . . . . . . . . .2083.00 +5.00 2361.00 1816.00 Tate & Lyle . . . . . . . . . . . . . . . . .526.00 +1.00 534.50 388.00
BG . . . . . . . . . . . . . . . . . . . . . .1232.00 +13.00 1302.50 966.90 Greene King . . . . . . . . . . . . . . . .446.70 +9.00 484.00 372.50 Northumbrian Water . . . . . . . . . .349.00 –2.00 364.00 239.90
BHP Billiton . . . . . . . . . . . . . . .2365.00 +29.50 2500.00 1678.00 Halfords . . . . . . . . . . . . . . . . . . .426.60 +15.10 562.50 370.10 Ocado Grp . . . . . . . . . . . . . . . . .139.40 +3.40 169.00 120.90 Taylor Wimpey . . . . . . . . . . . . . . .25.34 +0.41 46.34 22.12
BlackRock Mining . . . . . . . . . . . .726.00 +16.00 737.50 490.00 Halma . . . . . . . . . . . . . . . . . . . . .334.20 +6.30 345.50 221.80 Old Mutual . . . . . . . . . . . . . . . . .128.20* +1.70 146.90 95.30 Telecity . . . . . . . . . . . . . . . . . . . .445.00 +1.00 546.00 323.50
BlueBay . . . . . . . . . . . . . . . . . . .481.60* +0.10 495.00 251.00 Hammerson . . . . . . . . . . . . . . . . 411.10 +2.90 455.70 332.20 Partygaming . . . . . . . . . . . . . . . .232.20 +12.20 339.70 205.80 Templeton Emrg Mkts . . . . . . . . .652.00 +7.00 688.00 470.00
Bluecrest Allblue GBP . . . . . . . . .174.00 — 174.50 151.60 Hargreaves Lansdown . . . . . . . .490.20 +18.20 502.50 259.40 Pearson . . . . . . . . . . . . . . . . . . .937.50 +1.50 1069.00 812.00 Tesco . . . . . . . . . . . . . . . . . . . . .428.30* +8.50 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .55.40* –0.10 56.00 37.50 Hays . . . . . . . . . . . . . . . . . . . . . .109.50* +2.30 125.30 82.50 Pennon . . . . . . . . . . . . . . . . . . . .627.50 –3.50 644.00 468.70 Thomas Cook . . . . . . . . . . . . . . .188.00 +2.00 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .438.25 +2.65 658.20 296.00 Henderson . . . . . . . . . . . . . . . . .127.80 +2.20 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .357.30* +6.90 520.00 335.90 Travis Perkins . . . . . . . . . . . . . . .852.50 +22.50 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1038.00 –1.00 1052.00 709.00 Heritage Oil. . . . . . . . . . . . . . . . .367.00 –8.80 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1500.00 +17.00 1545.00 900.00 TUI Travel . . . . . . . . . . . . . . . . . .200.40 +1.40 313.90 189.20
British Airways . . . . . . . . . . . . . .272.90 +11.50 290.00 180.20 Hikma Pharma . . . . . . . . . . . . . .779.00 +26.00 813.00 480.00 Petropavlovsk . . . . . . . . . . . . . .1062.00 +40.00 1370.00 834.00 Tullett Prebon . . . . . . . . . . . . . . .356.60* +1.20 427.00 261.20
British Amer. Tob . . . . . . . . . . .2402.50 +39.50 2490.50 1832.00 Hiscox . . . . . . . . . . . . . . . . . . . .353.60 –9.50 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .671.50 +1.50 775.00 550.50 Tullow Oil . . . . . . . . . . . . . . . . .1213.00 +18.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .482.00 +4.60 497.00 338.50 Hochschild Mining . . . . . . . . . . .565.50 +12.00 580.50 220.00 Premier Farnell . . . . . . . . . . . . . .295.00 +1.60 299.20 150.80 UK Commercial Prop. . . . . . . . . . .77.00* +2.00 84.90 71.00
British Land . . . . . . . . . . . . . . . .495.40 +6.70 525.00 416.00 Home Retail . . . . . . . . . . . . . . . .210.40* +0.50 325.60 201.70 Premier Oil . . . . . . . . . . . . . . . .1885.00 +20.00 2032.00 984.00 Ultra Electronics . . . . . . . . . . . .1588.00 +42.00 1903.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .487.90 +5.90 518.00 366.10 Homeserve . . . . . . . . . . . . . . . . .430.00 –0.10 502.00 405.40 Provident Financial . . . . . . . . . . .750.00* +6.50 983.50 725.50 Unilever . . . . . . . . . . . . . . . . . .1877.00* +29.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .283.00 +5.20 308.00 204.80 HSBC Hldgs . . . . . . . . . . . . . . . .666.50* +6.00 752.00 595.20 Prudential . . . . . . . . . . . . . . . . . .618.00 +5.50 665.00 475.70
BSkyB . . . . . . . . . . . . . . . . . . . .726.00 +2.00 737.00 521.00 Hunting . . . . . . . . . . . . . . . . . . .636.00* +14.50 663.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .385.20 –2.80 406.80 231.70 United Utilities . . . . . . . . . . . . . .626.00 +3.00 634.50 467.40
BT . . . . . . . . . . . . . . . . . . . . . . .164.80 –0.30 170.10 108.40 ICAP . . . . . . . . . . . . . . . . . . . . . .476.60 +4.60 501.50 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . . 112.50 +13.50 179.10 96.00 Utd Business Media . . . . . . . . . .645.00 +5.00 692.00 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .723.00* +5.50 784.50 614.00 IG . . . . . . . . . . . . . . . . . . . . . . . .507.00 +15.50 560.00 312.60 Randgold Resources. . . . . . . . .6045.00 +75.00 6755.00 4126.00 Vedanta Resources . . . . . . . . . .2219.00 +40.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . .1026.00 +18.00 1065.00 555.50 Imagination Tech Gp . . . . . . . . . .317.30 +13.80 445.00 200.00 Reckitt Benckiser . . . . . . . . . . .3541.00 +70.00 3667.00 3019.00 Victrex . . . . . . . . . . . . . . . . . . .1241.00 +41.00 1355.00 753.00
Cable & Wire Comms . . . . . . . . . .48.05* –0.09 150.00 46.51 IMI . . . . . . . . . . . . . . . . . . . . . . .856.00 +30.00 857.50 483.10 Reed Elsevier . . . . . . . . . . . . . . .529.00 –7.00 566.00 454.60 Vodafone . . . . . . . . . . . . . . . . . .168.10* +1.15 179.90 126.50
Cable & Wire Wwide . . . . . . . . . . .66.70 –0.20 94.80 60.05 Imperial Tobacco. . . . . . . . . . . .1990.00 +19.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .80.20 +3.10 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1725.00 +36.00 1735.00 660.00
Cairn Energy. . . . . . . . . . . . . . . .373.70 +7.70 497.60 306.80 Inchcape. . . . . . . . . . . . . . . . . . .341.10 +9.90 358.00 235.00 Renishaw . . . . . . . . . . . . . . . . . 1178.00 +21.00 1250.00 479.00 Wellstream Hldgs . . . . . . . . . . . .750.00 +15.00 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1783.00 +32.00 1833.00 1496.00 Informa . . . . . . . . . . . . . . . . . . . .420.70 +6.40 450.50 263.30 Rentokil Initial . . . . . . . . . . . . . . . .93.80 –1.20 140.20 89.40 WH Smith . . . . . . . . . . . . . . . . . .468.10 +3.10 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .690.00 –32.00 829.50 676.50 Inmarsat . . . . . . . . . . . . . . . . . . .688.00 +14.50 831.00 603.50 Resolution . . . . . . . . . . . . . . . . .240.50 +0.50 280.50 220.10 Whitbread . . . . . . . . . . . . . . . . .1715.00* +24.00 1807.00 1260.00
Capital & Counties . . . . . . . . . . .145.80 +0.30 159.00 99.60 Intercontl Hotels . . . . . . . . . . . . 1139.00 +37.00 1244.00 803.00 Rexam . . . . . . . . . . . . . . . . . . . .318.30 +2.30 348.80 271.40 William Hill . . . . . . . . . . . . . . . . .158.30* –1.40 217.80 157.20
Capital Shopping Centres . . . . . .372.00 –5.70 523.50 300.10 Intermediate Capital . . . . . . . . . .335.50 +1.70 352.80 233.50 Rightmove . . . . . . . . . . . . . . . . .770.00 +11.00 830.00 456.90 Witan Inv Tst . . . . . . . . . . . . . . . .481.50 +6.50 492.00 397.30
Carillion . . . . . . . . . . . . . . . . . . .344.40 +3.20 361.90 272.00 Intertek . . . . . . . . . . . . . . . . . . .1828.00* –122.00 1964.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .4281.50 +134.00 4477.50 2751.00
Carnival . . . . . . . . . . . . . . . . . .2632.00* +16.00 2937.00 1963.00 Intl Personal Fin . . . . . . . . . . . . .314.80 +8.60 340.90 181.40 RIT Capital Partners . . . . . . . . . 1195.00 +22.00 1215.00 940.00 Wolseley . . . . . . . . . . . . . . . . . .1770.00 +28.00 1837.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .344.00 –1.70 394.60 303.20 Intl Power . . . . . . . . . . . . . . . . . .428.30 +8.80 438.10 268.70 Rolls Royce . . . . . . . . . . . . . . . .603.50* +4.00 661.50 466.10 Wood Group (John). . . . . . . . . . .479.00 +12.50 492.60 279.60
Centamin Egypt . . . . . . . . . . . . .184.80 +4.80 202.80 103.50 Invensys . . . . . . . . . . . . . . . . . . .338.70* +2.60 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1660.00 +2.00 1906.00 1101.00 WPP . . . . . . . . . . . . . . . . . . . . . .740.00 +10.50 758.50 562.50
Centrica . . . . . . . . . . . . . . . . . . .331.00* –1.20 347.00 252.00 Investec . . . . . . . . . . . . . . . . . . .507.00 +7.00 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .42.01 +0.28 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1338.50 +26.50 1462.50 832.50
Charter Intl . . . . . . . . . . . . . . . . . 711.50 +17.50 855.50 563.50 ITV . . . . . . . . . . . . . . . . . . . . . . . .68.25 –0.25 73.00 46.77 Royal Dutch Shell A . . . . . . . . .2042.00* +23.00 2106.50 1621.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2870.00 +10.00 3711.00 2551.00 Jardine Lloyd Thompson. . . . . . .582.00 +3.50 604.50 420.70 Royal Dutch Shell B . . . . . . . . .2014.50* +26.00 2071.00 1550.00
Close Bros . . . . . . . . . . . . . . . . .806.00* +4.50 834.00 657.00 Johnson Matthey . . . . . . . . . . .1897.00 +54.00 1999.00 1435.00 RSA Insurance . . . . . . . . . . . . . .126.90* +1.50 137.40 114.10 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .207.90 +4.10 278.60 199.20 JPMorgan Emerg Mkts . . . . . . . .602.50 +14.00 618.00 448.00 SABMiller . . . . . . . . . . . . . . . . .2157.00 +105.00 2165.50 1638.00
COLT Group . . . . . . . . . . . . . . . .121.00 +1.20 144.20 107.70 Jupiter Fnd Mgmt . . . . . . . . . . . .286.50 +3.50 310.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .269.20 +5.70 286.80 208.20 www.interactivedata.com

Mounting hope of an Irish New York rises on

bailout drives up the FTSE success of GM IPO
banks. British Airways added 4.4 per cent “There’s a lot of selling pressure at
THELONDON Sentiment surrounding banking
stocks was buoyed, with Lloyds
after solid results from Air France-
KLM boosted optimism in the sector. THENEW YORK the 1,200 level, there’s buying pres-
sure at 1,150 and we’re in a tight

REPORT Banking Group the best off, putting

on 1.9 per cent.
Further brightening the mood, gov-
Positive broker sentiment helped
InterContinental Hotels, up 3.4 per
cent, with Nomura repeating its
REPORT range until further notice,” said Joe
Battipaglia, market strategist at Stifel
Nicolaus in Yardley, Pennsylvania.
ernment statistics showed new US “buy” stance on the stock ahead of a Piercing the 1,200 level would

B U
RITAIN’S top share index closed claims for jobless benefits barely rose strategy day on 23 November. S stocks jumped yesterday on leave the S&P 500 facing hefty techni-
higher yesterday, boosted by last week and manufacturing activity Nomura said the firm “is well placed expectations of a resolution of cal resistance near 1,228, the highest
banks on growing hopes for a in the country’s Mid-Atlantic region to execute on long-term growth strat- Ireland’s banking crisis, but the it has been in more than two years.
deal to ease Ireland’s debt crisis touched a near one-year high in egy”. S&P 500’s inability to break Reflecting less market uncertainty,
and by mining stocks which followed November, ging investors more proof On the downside, Intertek shed 6.3 through resistance suggests stocks the CBOE Volatility index fell 13.8 per
metals prices higher. that the economy was regaining per cent after the testing equipment could be in a tight range through the cent, its largest percentage daily drop
The FTSE 100 closed 76.15 points, or some momentum. firm issued a cautious update, end of the year. in more than five months.
1.3 per cent, firmer at 5,768.71, in UK data, meanwhile, painted a prompting Seymour Pierce to cut its General Motors shares gained 3.6 The Dow Jones industrial average
light volume, trading 85 per cent of mixed picture of the economy, with rating to “hold”. per cent in its return to public trad- gained 173.35 points, or 1.57 per cent,
its 90-day average. British retail sales volumes picking And outsourcer Capita fell 4.4 per ing and accounted for about 5.1 per to 11,181.23.
The index rose 0.2 per cent in the up in October, while public borrow- cent after the firm’s quarterly trading cent of regular session volume, The Standard & Poor’s 500 rose
previous session, having recorded its ing hit a record high for the month. update, with Execution Noble saying according to Thomson Reuters data. 18.10 points, or 1.54 per cent, to
biggest one-day percentage fall in The upbeat US economic data in a note a lack of new contracts However, given how much 1,196.69.
three months on Tuesday. along with the easing Irish debt wor- would put downward pressure on Ireland’s financial woes hampered The Nasdaq Composite added 38.39
“I think we’re probably close to get- ries underpinned demand expecta- 2011 top-line expectations. stocks in recent days, GM’s success points, or 1.55 per cent, to 2,514.40.
ting things resolved in Ireland but tions for industrial metals, boosting was a side note to the rescue of GM shares shot up as much as 9.06
I’m not pinning too much on the metals prices and having a positive ANALYSIS l FTSE another troubled European country’s percent as investors bet the US
market bouncing back,” Manoj knock-on effect on mining stocks. 6,000 5,768.71 finances. automaker can make a sustained
Ladwa, senior trader at ETX Capital, Fresnillo was the second-top FTSE 18 Nov US-listed shares of the Bank of recovery as it returned to the market
said. 100 riser, up more than 5 per cent, 5,800 Ireland climbed 33.3 per cent to after a blockbuster IPO.
“It could just be a dead cat bounce with Rio Tinto another good gainer, $2.88. The stock closed up 3.6 per cent at
recovering some of the losses we saw 3.2 per cent ahead. 5,600 Despite the bullish sentiment, the $34.19. The S&P Industrials index
a couple of days ago,” he said. But SABMiller grabbed the top spot 5,400
S&P 500 hovered around 1,200 for rose 1.8 percent as GM’s advance
Ireland’s central bank chief said he on the blue chip leader board, up 5.1 most of the session but failed to hold boosted shares of other automakers
expected Dublin to receive tens of bil- per cent after a strong recovery in 5,200 above the key level. and auto suppliers.
lions of euros in loans from European emerging markets helped the brewer This could mean the index’s trad- “This morning we had the big push
partners and the IMF to provide con- beat forecasts with a 16 per cent rise 5,000 ing range will remain tight for the from GM and the enthusiasm that
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
tingency capital for its shattered in half-year earnings. rest of the year. creates,” Battipaglia said.
 22 Investment | Personal Finance CITYA.M. 19 NOVEMBER 2010

Planning now
will save time
and cash later
Thinking ahead will wealthy City workers, however financially
savvy they might think themselves to be.
help you successfully Sue Whitbread at the Institute of
Financial Planning says: “Financial plan-
achieve your goals, ners tell us that high net worth individu-
als quite often don’t plan.”
writes Jessica Mead Julie Lord at Bluefin Wealth
Management says: “They will all think
that they know something about money,
and they will. But what is missing is that

A
LMOST everything you will ever
want or have to do in life will cost
you money, so it is worth – every
now and again – taking stock of
your situation to think about your goals
and how you can plan your finances
accordingly. Next week is Financial
Planning Week, which should provide you
with an incentive to do just this.
Financial planning is just as relevant to
there is no coordinated strategic plan.
They all have a bit of money here and a bit
there and they don’t know what size of
fund this is going to generate them nor is
it targeted towards any particular out-
comes.”
Life-changing events such as having
children and retiring will affect your
finances. Here’s what you should be think-
ing about when you do your planning.

Inflation is like a hole

in every saver’s pocket
This is a terrible time
to be putting money
under the mattress,
says Daniel Knowles

I
NFLATION is a global concern at the
moment. In China, rocketing food
prices have pushed up inflation to 4.4
per cent, prompting a 50 basis point
rise in interest rates and a short crash in
global equity and commodity prices. That
must be galling for British savers – accord-
ing to the Office for National Statistics;
British inflation is almost as high as
China’s, and no interest rate rise is forth-
coming. The retail price index increased
by 4.6 per cent in October, while the co
nsumer price index increased by 3.2 per
cent. Far from earning a return, savers are
seeing their money steadily eroded in
value. What can they do about it?
Well, the first thing is to look for higher
interest rates. According to
Moneyfacts.co.uk, to beat inflation, a basic
rate taxpayer will have to find an account
with a return of 4 per cent, while a higher
rate taxpayer will need to earn 5.33 per
cent. To get those sorts of returns, most
savers will have to lock in their money for
a long time – the State Bank of India offers
an account with a return of 4.5 per cent to
Don’t let your savings people willing to commit for five years, as
float away does the AA. Savers would be advised to
use up their ISAs first though – few pay
Picture: GETTY more than 3 per cent, but unlike most sav-
ings accounts, interest is tax-free.
A better option might be to stop being a
saver. The Bank of England is keeping
interest rates low not so much to deliber-
ately punish savers but rather to encour-
age people to either spend their money or
to put it into riskier assets. It is now possi-
ble to invest as much as £10,200 in a stocks
and shares ISA, which attracts no income
or capital gains tax, while shares are still
arguably relatively cheap.
But with the VAT rise kicking in at the
New Year, there is one other solution.
Stuff is only going to get more expensive.
Perhaps the best way to beat inflation is
just to buy as much you can possibly can
now.
CITYA.M. 19 NOVEMBER 2010
If you had one of
these, planning would
be easier
Picture: GETTY
KEY MOMENTS | RETIREMENT AND OLD AGE
Every financial expert agrees that people need to start
putting away money sooner if they want to have a com-
fortable retirement. “Because of the power of com-
pounded growth, people should be thinking about things
way ahead of when they need the money,” warns
Bluefin’s Julie Lord.
“People assume that if they’re earning good money now,
they’re going to continue earning good money,” says
Chris Nicholls at Investment-Advice-Online.com.
With annuity rates dropping like a stone, it has also
become more difficult to transform your pension pot into
Expat expert: Potential offshore tax benefits
Understand how your wealth
may be affected by European
Union investment legislation
Q. WHAT ARE THE POTENTIAL TAX
BENEFITS OF BANKING OFFSHORE?
A. An attraction of offshore banking
could be the opportunity to receive
gross interest since interest on offshore
accounts is usually paid without the
deduction of tax. This may be tax effi-
cient for you, depending on the tax rules
in the country where you are resident.
There is also the possibility that you
will not have to pay any inheritance tax,
capital gains tax or death duties if you
hold a bank account in jurisdictions
such as the Isle of Man and Jersey.
KEY MOMENTS | STARTING OFF
It doesn’t matter how old you are. Knowing what your goals
are is critical to planning your finances. People often won’t
think about planning finances until they get married or have
children because they see it as not particularly exciting. But
ideally, you should think about it as early as possible.
“You have to find out how much you are worth and prepare a
budget to work out what your net cash flow is,” says Adrian
Lowcock, senior investment adviser at BestInvest. Lowcock
adds that you often find out very quickly what you are doing
wrong with your finances. As part of any financial plan, you
should always aim to have about three months’ salary in easi-
KEY MOMENTS | CHILDREN
Planning for children can be as simple as how many you
want to have – and even this can cause disagreements with
your partner. But, assuming you do want children, having an
idea of how many and how far apart will help you manage
your cash flow.
Children are certainly expensive – estimates run at
£200,000 before you’ve even added on private school fees
and the rising cost of university tuition. You will have to be
able to cope with reduced income for at least the duration of
maternity leave and potentially for longer if one half of the
couple decides to reduce working hours to look after the
KEY MOMENTS | ESTATE PLANNING
Thinking about one’s death is never a particularly appealing
prospect but that does not mean you should avoid estate
planning. You never know when you might fall ill, become less
able to manage your finances, or even get hit by a bus, so
forethought really is essential.
If you do have significant wealth or complicated finances,
then restructuring your assets to make them as tax efficient
and as simple as possible will help your relatives after your
death. In an age of austerity, your children and grandchildren
will appreciate whatever financial help you can give, whether
this is the form of gifts before you die or as an inheritance.
a sizeable retirement income. For example, if you have a
pension pot of £500,000 when you retire, then your
income – if you enter drawdown to preserve capital – is
around £20,000. “There are enough people out there
who want a lot more than that,” points out Lowcock.
If you are aged 40 or more, he says that getting financial
planning advice is essential. “Just in retirement alone
people are living longer and the healthcare associated
with that can eat away a lot of money very quickly
indeed. A planner can help you tidy up complicated tax
affairs and make them more effective,” he adds.
A probate may be required in certain
circumstances.
However, if you live in an EU member
state then you are likely to be affected by
the European Savings Directive (ESD).
Q. WHAT IS THE EUROPEAN SAVINGS
DIRECTIVE ?
A. The European Savings Directive was
agreed on 3 June 2003 and it came
into force on 1 July 2005.
According to the directive, it aims to
counter cross border tax evasion by col-
lecting and exchanging information
about foreign resident individuals
receiving savings income outside their
resident state.
The government believes that
exchange of information between tax
authorities is the best way to ensure that
individuals pay the right amount of tax
on cross-border income from savings.
Investment | Personal Finance
ly accessible rainy day funds.
Bluefin Wealth Management’s Julie Lord says: “The main
thing that people ignore is inflation and what it will do to
their value of their money in the future. It’s a hidden demon
that sneaks up on people. With inflation having been low for
some time, its effects have almost been forgotten.”
In essence, people should have a ballpark figure of what they
can afford to save on a weekly, monthly or even annual basis.
Then how they save is down to their discipline and need for
flexibility. For example, there is no point putting all your
money into a pension if you need it aged 40 for school fees.
kids.
Financial planning for those with young families is not just
about managing the higher daily expenditure. It may also be
about putting some money aside – perhaps well before the
children are born – to help pay for school fees, computers
and the like.
Parents should also consider financial protection. What hap-
pens to the rest of the family if you and/or your partner are
involved in an accident? Will they be able to manage finan-
cially? Look into getting insurance against unforeseen events
such as redundancy, long-term illness and premature death.
If you have a large estate and are likely to be liable for inheri-
tance tax, then you are likely to need the assistance of a
financial planner. “Financial planners can be worth their
weight in gold in this scenario,” says BestInvest’s Adrian
Lowcock.
The rules and regulations surrounding bequests and gifts are
extremely complicated – ie, any gifts you make to individuals
will be exempt from inheritance tax as long as you live for
seven years after making the gift. If you are planning to pass
on some of your wealth to reduce the size of your estate, it is
worth speaking to a financial adviser or tax expert.
For example, one of Bluefin’s clients was a couple in their
fifties with poorly structured pensions – spread between
various life offices, mostly in with-profits schemes. By
consolidating their pension and cash accounts after pur-
chasing an annuity with their accumulated pension fund,
Bluefin could create a bespoke investment portfolio.
But it doesn’t have to be all doom and gloom. A financial
planner may be able to help you restructure and consoli-
date your finances so that you can reduce your hours as
you approach retirement or even retire earlier than you
ever thought possible.
Q. WILL MY INVESTMENTS BE AFFECTED
BY THE ESD?
A. Any interest you receive on your off-
shore accounts can have tax with-
held at source.
Alternatively, you may opt to continue
to receive gross interest, but details
about you and the interest you have
received will be shared with the tax
authority in the EU member state where
you are resident.
Certain investments are not affected
by the European Savings Directive, how-
ever. These include:
l Insurance policies, life policies (such
as with profit funds) and pensions.
l Shares that you hold directly.
l Pure equity funds are unlikely to be
affected because their primary objective
is to achieve capital growth.
You may also be excluded from the
ESD in certain circumstances:
23
PERSONAL
FINANCE NEWS
BY JESSICA MEAD
BRITS TO WORK BEYOND RETIREMENT AGE
Over 4m Brits aged 50-plus expect to work
beyond their state retirement age by an
average of just over six years, according to
the first Working Late Index, published this
week by insurance, investment and retire-
ment group LV=. A quarter believe they will
work five to 10 years more, and a further
one in five see themselves working well into
their seventies or even eighties. Nearly twice
as many women expect to retire past their
state retirement age as men.
ETORO BACKS RESPONSIBLE TRADING
Trading platform eToro has this week
launched its Responsible Trading pro-
gramme, which aims to provide traders with
the information and knowledge they need. It
safeguards new traders by setting a low risk
level as the default and requires new traders
to review educational information before
being able to change the leverage setting
manually. Further features are scheduled to
be added to the platform next year.
MORGAN STANLEY’S FTSE GROWTH PLAN
Morgan Stanley announced this week the
launch of its FTSE Gilt-Backed Growth Plan
6. This six-year product offers investors 7.25
per cent per annum, which will be paid on
the first anniversary that the FTSE records
flat or positive performance. Should this
occur, investors may exit the plan at this
point and receive their initial investment
back in full plus the fixed return. The mini-
mum investment is £3,000 and it is available
until 24 December with an early investment
discount equivalent to 0.5 per cent per
annum.
LEEDS BS RELAUNCHES FIXED RATE BOND
Leeds Building Society has relaunched its
short term Fixed Rate Postal Bond, which
pays a guaranteed return of 2.50 per cent
gross per annum. Investors have unlimited
access to all of the funds in the bond at any
time without any notice or penalty. The mini-
mum investment is £1,000 and the maxi-
mum is £1m (£2m for joint accounts). The
interest is paid on maturity on 31 March
2011.
M&S MONEY WARNS AGAINST BURST PIPES
M&S Money is warning Britons to take steps
to prevent burst water pipes this winter
after a surge in related claims last January.
Claims concerning burst pipes made to M&S
Home Insurance jumped 220 per cent in
January 2010 on the previous year as a
result of the freezing temperatures. There
was also an increase in the number of claims
of more than £100,000. Andrew Ferguson,
M&S Head of General Insurance, said:
“Escape of water can cause thousands of
pounds worth of damage by destroying ceil-
ings, furniture and personal belongings.”
l You are a resident in the UK but are
not domiciled there and are prepared to
follow certain restrictions, ie, you do not
intend to transfer any of the offshore
interest paid after 1 July 2005 from your
offshore accounts back to the UK.
l You are an unincorporated associa-
tion or society such as a charity.
l You are a company or partnership.
l Your affairs are in a trust (provided
the trust structure meets certain rules).
l You are able to provide an exemption
certificate from an EU tax authority.
For more details about HSBC Bank
International’s offshore banking solutions visit
www.offshore.hsbc.com or call +44 1534 616079
In association with
 Living
24 CITYA.M. 19 NOVEMBER 2010

| The Knowledge

FOCUS ON: HERTFORD SELLING

Q&A
BY JESSICA MEAD

VILLIERS STREET BALLS PARK

Price: £599,995 Price: From £294,995
This four-bedroom
townhouse is close to
This 60-acre develop-
ment on the outskirts of
Russell Hunt
MANAGING DIRECTOR,
the town centre and it Hertford has one and PROPERTY HUNT
has been refurbished. two-bed apartments as
Period features such as well as three-bed hous- Dear Russell, what can I do to
sash windows and fire-
places have been kept.
There is a back garden.
es. All properties have
state-of-the-art fittings
and luxury furnishings.
Q. increase the value of my property?

Contact: Hetheringtons Contact: Explore Living

A.
There are very simple and obvious
on 01992 440000, on 0844 6626049, things that can be done to improve the
hetheringtons.co.uk www.balls-park.com value of a property but it is amazing
how often people forget them. For example, it
will not help the value of your property at all if
it is cluttered. You want prospective buyers to
envisage rooms as large in size and clearing
away items will help them appear bigger.
Equally, keep your kitchen surfaces clear.
If you are selling a tenanted property, then
NEED TO KNOW | AREA INSIGHT you need to make sure your tenants keep it
tidy. You could consider incentivising them by
REVELLS HALL offering them a rent reduction. This will help
Price: £2.75m Commuting: Hertford is around 40 national average, particularly for rob- your sale price so you’ll almost certainly make
This Grade II-listed 16th minutes away from Moorgate by train bery and sexual offences. back what money you lost on the rent.
century house has while it is also well located for both Check to make sure there are no damp
panoramic views across the A1 and the M25. Restaurants & Pubs: Hertford has a patches or any smell of damp and if a flat
Ware Park. There are six number of good restaurants, including above has leaked, for example, and stained the
bedrooms, two separate Education: There are top state Lussmans, Deco, and Papillon at the ceiling, get rid of the mark. Even if it happened
self-contained flats, a years ago, it will give buyers an impression that
schools near Hertford such as Mill Woodhall Arms, which is in nearby the place needs work doing to it and may offer
large garage and a size- Mead and Hollybush primary schools Stapleford. In terms of pubs, the Mill
able gym. less. Make sure all appliances and lights work.
Contact: Strutt & Parker as well as Simon Balle secondary Stream is described as friendly with a Finally, if you have a flat in an apartment block,
on 01727 840285, school. Private schools in the area pleasant beer garden. give the communal areas a tidy. These are the
struttandparker.com including Duncombe Preparatory first parts of the property that viewers will see.
School, Heath Mount Preparatory Parks & Leisure: There are plenty of

Q.
School and Haileybury College. sports facilities such as golf at Dear Russell, do you think it is a buy-
Hanbury Manor, Aston and East Herts ers’ or sellers’ market in London?
Crime: Hertford is much safer than the golf clubs and polo at Letty Green.

A.
There have been many conflicting
reports on this topic but in my opinion
it is more of a buyers’ market here in
CURRENT MORTGAGE DEALS BY JESSICA MEAD Source: MoneySupermarket.com the capital. Vendors have become more flexible
so it is worth doing some research into what
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan situation the seller is in. Try to find out if they
need to sell quickly or if they need to release
(per cent) (per cent) (per cent) to Value (per cent) the cash – this strengthens your negotiating
power. However, there are still some sellers
who have a price in mind and you will never get
NatWest Flexible 1.99 To Feb 2013 4 3.9 60 them to shift their position. If you are up
First Direct Flexible 2.19 2 years 3.69 3.5 65 against other people for a property, then it
becomes trickier to make the most of a buyers’
Santander Flexible 2.19 2 years 4.24 4 60 market. But with Christmas approaching, there
ING Direct Flexible 2.29 2 years 3.5 3.5 60 is less competition and sellers want to
exchange now to get it out of the way.
HSBC Flexible 2.39 Term 2.4 2.4 60 Check out properties that have been sitting
on the market. The house might not have any-
Yorkshire BS Flexible 2.39 To Nov 2012 4.99 4.7 60 thing wrong with it – it may just have been
First Direct Fixed 2.69 2 years 3.7 65 passed over by estate agents in favour of
newer commissions – and the seller might take
Yorkshire BS Fixed 2.69 To Nov 2012 4.99 4.8 60 a reduction.
Santander Fixed 2.69 To Jan 2013 4.2 4.2 60
Russell Hunt is managing director of Property
Principality BS Fixed 2.74 To Dec 2012 4.99 4.9 65 Hunt, a search agent for London and the
Home Counties. www.property-hunt.co.uk
ING Direct Fixed 3.39 To Mar 2013 3.5 3.6 80

PROPERTY NEWS
BY JESSICA MEAD

RENTS ON THE RISE
Rents rose for the ninth consecutive month in
October to £691 while tenant arrears fell significant-
ly for the second month in a row, according to the
latest buy-to-let index from LSL Property Services.
Unpaid rent totalled £221m, down from £229.3m in
the previous month. This accounted for just 9.3 per
cent of all UK rent unpaid during the month and was
only 0.1 per cent higher than its best performance on
record.
AWARD-WINNING DEVELOPMENT IN CAMBRIDGE
Only 10 homes are still available at Redeham Homes’
Accordia Living development in Cambridge so inter-
ested buyers will have to act quickly. Prices for the
remaining homes start from £239,950 for a one-bed-
room apartment and from £849,950 for a four-bed-
room townhouse. The development of 203 homes is
situated within 23 acres on Brooklands Avenue. It
received the Royal Institute of British Architecture
Stirling Prize for its innovative architecture.
FIGURES SHOW IT’S CHEAPER TO BUY
Buying is more cost effective than renting in 80 per
cent of British cities and towns according to research
conducted by property search website Zoopla.co.uk. As
asking prices have come down and rents have
increased, this figure has risen from 74 per cent in July.
Assuming an owner with an interest-only 5 per cent
mortgage, the average renter pays 9.9 per cent more
than an owner. This is compared to a difference of 8.7
per cent in July.
DALSTON SQUARE PROVING POPULAR
More than 75 per cent of apartments have sold in the
second phase of Barratt East London’s Dalston Square
development. The homes are approximately three miles
from the Olympic Park and are due for completion in
the summer/autumn of 2011. Comprising nine blocks of
different heights, prices in the latest phase start from
£242,000 for a one-bedroom apartment. Most flats
will have a balcony or terrace and there will also be a
24-hour concierge service and an on-site private gym.
 Queen Mary’s Gate • South Woodford • E18

Q
uncompromising
LUXURY
...and special offers on selected homes reserved in November!
• Apartments [1 bed]] up to £250,000 - Receive up to £1500 of furnishings**
• Apartments [2 bed] £275,000 to £325,000 - Receive a Luxury Lifestyle package
including gym membership, Oyster Card & shopping vouchers up to £2500**
• Apartments [3 bed] £375,000 to £385,000 - Estate Agent’s fees paid** (home movers)
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0800 833 8607 or (out-of-hours) 0800 032 0077 www.telfordhomes.plc.uk

Sales Centre Open Mon - Sat 10am - 6pm, Sun 11am - 5pm
*Price correct at time of going to press. **Terms and conditions apply - please contact the Sales Centre for full details.
All apartments must legally complete by 20th December 2010 to qualify for the November special offers. Photographs depict Queen Mary’s Gate.
 26 Living | The Knowledge
Twenty per cent off
property in paradise
Buying your Caribbean dream
home is now more affordable
than ever, writes Donata Huggins
I
T FEELS wrong to be delighted by the
financial crisis, doesn’t it? But if you
were reclining on a sun-lounger in
30°C heat with a sparkling ocean
stretching out in front of you, it would be
difficult not to. Especially if you had man-
aged to buy a Caribbean dream home on
the cheap. The numbers of these smug peo-
ple are growing because the financial crisis
lopped an average of 20 per cent off proper-
ty prices across the Caribbean. But with
depressed property prices comes a degree
of risk and buyers need to consider careful-
ly the various islands' potential before tak-
ing the plunge.
Indeed, Julian Cunningham of Knight
Frank’s international department explains
that most are shopping safe by sticking to
the most established islands such as
Barbados. “Three and a half years ago peo-
ple were more adventurous, buying in less
densely populated places like Dominica
and St. Martin. Now they want to be able to
see their exit strategy before they buy, just
in case.”
But the real bargains are outside of
Barbados. In Nevis, for instance, a luxury
For more information visit residencessugarbeach.com
CITYA.M. 19 NOVEMBER 2010
VICEROY RESIDENCES, ANGUILLA
Between $935m-$9.9m
These recently opened contemporary-style villas had their interiors styled by Beverley Hills
design celeb Kelly Wearstler. The 166 residences range from studio apartments to penthous-
es. Some have private beaches. The development is surrounded by 35 acres of land.
Contact: Hamptons International on 020 7758 8488
property can be $2.5m cheaper than in
Barbados. Certainly, a risk worth taking
now that the financial crisis is underway
and prices are beginning to recover.
But which island is most likely to pay off?
“Any island with direct international
flights will do well,” says Cunningham. The
Caymans, for example, has direct flights to
both the UK and Miami. It also benefits
from extremely low taxes – a major pull
considering the rising taxes in the UK and
US. St. Lucia is also a good choice. It’s cheap-
er than Barbados, more popular than
Dominica and has none of the financial
scandals that rocked Antigua a couple of
years back. The island is experiencing grow-
ing commercial interest. Developments
such as Sugar Beach have poured in mil-
lions to build luxury properties on the
coast of the Caribbean Sea.
But what are the experts tipping?
Cunningham says Grenada is his “wild
card” because it had only just entered the
mainstream property market prior to the
crash, yet the prices have fallen 10-5 per
cent further than its more established
rivals. “My bets are on it making a come
back,” says Cunningham.
Prices may be low but confidence is
growing, so the window of this bargain
opportunity might be short-lived. Those
bold enough to take the plunge on an
island property outside of Barbados could
reap the benefits when prices take off
again.
CITYA.M. 19 NOVEMBER 2010 Living | The Knowledge 27

WINDSWEPT VILLAS, ST. KITTS

Between $1.975m-$2.45m
These villas are based on the least populated island in the Caribbean. The development offers 11 apart-
ments with three to four bedrooms on the harbours side.
Contact Aylesford International on 020 7349 5100

CARIBBEAN FINANCE FACTS

MORTGAGES:
Caribbean banks never really
offered particularly generous
mortgages even before the crisis.
SUGAR BEACH, ST. LUCIA So if you’re interested in buying be
Between $2.4m-$9m sure that you have at least a 30-40
These soon-to-opened residences will offer private swimming pools with natural stone or whitewashed per cent deposit available. Most
greenheart timber deck, depending on the setting. Some of the bedrooms will have private balconies. people purchase their property in
Contact Sugar Beach on 084 4921 0126 cash.
EXCHANGE RATE:
If you know that you will be selling
your property in the near future,
beware that experts have noticed
that property sells more easily when
the dollar ranges between $1.5-$1.6
to the pound. Important to bear in
mind as the next few years could
see considerable fluctuations.
CAYMANS TAX:
While taxes are extremely low in the
Cayman Islands there are a few
taxes that can hit the unprepared
hard. The tax imposed on importing
a car, for instance, is calculated from
the cost of the car plus the insur-
ance premium with a special tax for
those with SUVs.

Introducing the Caribbean’s finest

residences, nestled between the
iconic Pitons of St Lucia
The Residences at Sugar Beach
The world renowned Jalousie Plantation Resort is undergoing a breathtaking
transformation to become Sugar Beach. At the heart of this UNESCO World
Heritage Site are the Residences – stunning freehold properties with unbroken
vistas across the rainforest, Pitons and warm waters of the Caribbean.

Prices from US$2,400,000

+44 (0)844 9210126 info@residencessugarbeach.com

 28 Living | Couples
Investing your love in bricks and mortar
Rebecca O’Connor, director at
Perrons Davis, the property
group, explains how to buy
your first house as a couple
1
BUDGET
BEFORE you start the fun stuff – house-
hunting – make sure you have covered the
boring stuff: finances. Work out how
much you can afford to put towards mort-
gage repayments each month, based on
your joint net income, and joint outgo-
ings.
If, like Kate and William, you are thor-
oughly modern and are already living
together in rented accommodation, this is
easier to work out (whether you are com-
fortably affording your rent repayments is
a good guide to what you could afford in
mortgage repayments). If you are living
separately, you may find that your outgo-
ings on household bills shrink when you
move in together – a bonus of coupledom
– so take this into account.
Excel spreadsheets really come into
their own when budgeting: familiarise
yourself with the formula function.
2
BE FRANK WITH EACH OTHER ABOUT
EARNINGS
THERE can be no financial holes barred
when applying for a joint mortgage.
Every little missed credit card payment
SUPERBLY DESIGNED 1, 2 & 3 BEDROOM
APARTMENTS IN STRATFORD
NOW AVAILABLE TO VIEW
Velocity’s sharply styled apartments come
with balconies and luxury specifications and
are now available to view.
Conveniently located on Stratford High Street, Velocity is less
than half a mile from the centre of Stratford and only minutes
from exceptional transport connections.
Westfield
Olympic Retail Centre
village DLR
Stratford
Regional
Station
Main
Stadium 1 Ward Road,
HI
E15 2LB
Stratford Market
Transport
Interchange Car Park
PRICES:
1 Bedroom apartments from £198,950
2 Bedroom apartments from £243,950
3 Bedroom apartments from £294,950
CITYA.M. 19 NOVEMBER 2010
will come out in the open, as will earn-
ings. When assessing how much you can
afford monthly, mortgage lenders will
take into account the amount you earn
jointly.
Each lender has different criteria – for
example, some will lend a maximum of
three times the highest income and one
times the second income, or four times
joint income. Some will just go on what
you can afford rather than income mul-
tiples, but check before applying. If
either of you has credit problems in the
past, be aware that this may result in a
rejected application, although lenders
will look more kindly on you if the high-
est earner has an unblemished credit
history.
3
Prince William and Kate Middleton will probably
manage to avoid mortgage stress.Picture: REUTERS
POOL RESOURCES
WHEN sourcing a mortgage deal, buying
4 5
as a couple is easier than buying as a sin-
gleton because you can pool resources
for a deposit – another bonus of couple- THE BIGGER THE DEPOSIT, THE SET UP A JOINT ACCOUNT
dom. It is best to try and contribute CHEAPER YOUR REPAYMENTS WILL BE THIS does not have to be a big, meaningful
equally but in practice, this is unlikely, THERE are first time buyer deals available relationship event. It is just practical. All
since the chances are your incomes to people with as little as 5 per cent of the of your household outgoings, including
aren’t the same. If one of you has con- purchase price to put down, but rates are the mortgage, electricity bills, council tax,
tributed more to financing the pur- cheaper if you can find 10 per cent, cheap- TV licence and Sky can come out of it by
chase, consider what this would mean if er still at 15 per cent, and really great if direct debit. Each person’s contribution to
you broke up and sold the property. you have 25 or even 40 per cent to put in. the household expenses can also go into it
Would the main contributor get a bigger Consider how much you can raise as a by standing order. This is more egalitarian
share of any equity gain? deposit before househunting, as this will than nominating one person to take
It is not a nice conversation, but it is inform your range of options more than charge of all of the household bills and is a
worth having and even putting in writ- anything else. The Post Office currently good exercise in shared responsibility that
ing or in an email, should the unthink- has some competitive deals for those with will serve your relationship well in the
able happen. smaller deposits. future.
let every second count...
Show home open Thurs-Mon 11am-5pm
y
Stratford
Shopping
Centre
Call now to book an appointment to view
<(,
020 8522 4568
1
A1
ST
GH
www.site-sales.co.uk
View from Velocity
LLandlord?
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 City Focus
30 CITYA.M. 19 NOVEMBER 2010

| Entrepreneurs

How to turn Cameron’s vision of an

entrepreneurial decade into a reality
Global Entrepreneurs Week one per cent in self-employment rates
could boost the UK’s GDP by around 1.5
offers the chance to hold the PM per cent and add approximately £22bn to
the UK economy.
No wonder David Cameron wants to
to account, says Donata Huggins make this decade the “most entrepre-
neurial and dynamic” in British history.
But the trouble is few believe him. A
are engaged in the actual process of start-
ing a business compared to 8 per cent in
the US and 15 per cent in Brazil and 19
per cent in China.
AMBITION GAP
But don’t think this means that Brits
don’t want to become entrepreneurs: 50
success.
The YouGov poll shows the population
is pointing its finger at the government
for this one: 77 per cent of people want
the government to play a key role in sup-
porting entrepreneurs.
So this week’s Global Entrepreneurs
Week is calling Cameron to account, ask-

D
AVID Cameron has called on the recent YouGov survey found that while per cent of the population want to start a ing him to back British entrepreneurs
nation’s “doers-and-grafters, inven- 79 per cent of Brits think the recovery business. Clearly some form of “ambition and to make sure the next decade really
tors and entrepreneurs” to save us rests on the shoulders of entrepreneurs, gap” has emerged. Many are pointing to is an entrepreneurial one. Below, we have
from our troubled finances. He’s only 20 per cent believe it will happen. the education system because research asked entrepreneurs, opinion-formers
not wrong. According to research com- Currently Britain is lagging behind: shows that enterprise education at and decision-makers what can be done to
missioned by Enterprise UK, a rise of just just 5.8 per cent of the population school doubles your chances of business achieve this.

JULIE MEYER | ENTREPRENEUR TRAVERS CLARKE-WALKER | BOBBY LANE | ENTREPRENEUR

BARCLAYS BUSINESS BANKING

“ “ “
It’s in all our interests to make the load as light We need to tackle late or non-pay-
as possible for entrepreneurs. The gov- ment for work if we want to make a
ernment needs to reduce taxes and national big difference for entrepreneurs in this coun- The government
insurance contributions in the early years of a try. In our survey this year we found that, at could encourage
business and create labour laws that give any one time, around £9bn is owed to small entrepreneurs in
greater flexibility to growing companies. businesses in the UK. Worse, businesses have these tough times
The rest of us however need to make their doubled the amount they have written off and by extending the
stories heard to start to change the cul- around one in five businesses say that late or non-payment national insurance
ture of the UK and encourage an threatens their business’s future. Once debt is written off, holiday for small
atmosphere of entrepreneurship. that’s money, time and resources lost and for some busi- businesses to the
After all, NESTA research shows that nesses that may be the difference between profit and loss. excluded areas of
the 6 per cent of UK businesses with Avoiding this isn’t always possible, but businesses can help London and the South East. This is a
the highest growth rates generated themselves by making credit checking standard practice – great incentive that will encourage

”
half of the new jobs between that’s simply doing a credit check on their new more businesses to get off the ground

”
2002-8. We need entrepreneurs or existing customers and working out in those difficult early years. The gov-
now more than ever. whether they are creditworthy. ernment’s proposed extension of the
Enterprise Capital Fund programme is a
good idea since many good business

”
ideas are not currently getting
funding from the banks.
MATT BRITTIN | HEAD OF GOOGLE UK PETER JONES | NEA FOUNDER

“ People simply need to realise the opportunities the internet

holds for starting new businesses. It is now easier than ever to start a
online business. The internet is a fantastic low-cost tool for trialling
products and ideas, allows for easy feedback and marketing and pay-
ment methods are faster, safer and easier to use than ever before.
Business online is not a new idea anymore. Britain is steaming ahead
this week showed that young people blame
their teachers for their lack of entrepre-
neurial spirit. They say the number one
reason they are held back from becoming
an entrepreneur is their teachers’ lack of
business experience. We need a structured
approach to tackle this if we want to
in this field – proved by the fact that online businesses currently make

“
up 7.2 per cent of GDP (more than the construction, utilities and change the nation. There’s a high level of

”
transport industries put together). And it’s growing at 10 per If we really want to encourage support for doing this. The survey also
cent a year. Forecasts predict that online businesses will make the “doers-and-grafters” of showed that 54 per cent of people backed

”
up 10 per cent of GDP by 2015. Britain, we urgently need a shift in the idea of making enterprise edu-
culture and this has to start with young cation a mandatory part of the
people. Research released from YouGov national curriculum.

MARK PRISK MP | BUSINESS & ENTERPRISE MINISTER

VIEWS | POLICY WISH LIST

“ We want to support small businesses as

they grow and expand, and ensure they
have access to the finance they need.
This week we announced a new 40,000-
strong network of business mentors
which will help start-ups, growing com-
INSTITUTE OF DIRECTORS:
l

l
Abolish the right to flexible working and
let small businesses conduct this informally.

Introduce a minimum £500 deposit in

panies and businesses seeking financial
mentoring. I want to call on more
businesses to join this network.
The best people to advise
entrepreneurs and business
owners are those
who have already started and
run successful companies.
The government wants to
create the best possible condi-
tions for our small businesses
so the main rate of corpora-
rate will be reduced to 20 per cent. We will also
extend the highly successful Enterprise Finance
Guarantee for four more years, which facilitates
additional bank lending to viable small and
medium sized businesses (SME). We also want
to continue the Enterprise Capital Fund pro-
gramme that enhances the provision of equity
finance to SMEs by using government funding
alongside private sector investment. This will
enable high-growth start-ups to
employment tribunals.
l Scrap the ban on the default retirement
age.
THE FEDERATION OF SMALL BUSINESSES:
l Cut red tape to make it easier to set up
small businesses.
l A greater number of government con-
tracts must be awarded to small and grow-
ing businesses.
THE BRITISH LIBRARY, IP & BUSINESS
CENTRE:
l Introduce a fast-track IP scheme for small
businesses to help entrepreneurs protect
their ideas. The procedure currently takes
around two years.
l More government sponsored apprentice-
ships.
TAXPAYERS’ ALLIANCE:
l Scrap capital gains tax to strengthen the
incentive to take risks and become an entre-
preneur
l Abolish inheritance tax because it doesn't
raise much revenue and inheritances are a
key source of initial capital for the many

”
tion tax will be cut from 28 access important venture capital l Greater financial support for green innova- entrepreneurs who don't want the risks of
per cent to 24 per cent over investment. So my message to aspir- tion. borrowing.
four years, and the small firms’ ing entrepreneurs is: you can make it.
 Lifestyle
Watches ready for action
It’s time for a return
to sporty timepieces
for thrill seekers,
says Timothy Barber
B
ACK in the heady days of what we’re
now calling “the bubble” (2006, basi-
cally) things in the world of watches
had all got a little bit much, frankly.
If the thing strapped to your wrist wasn’t
big enough to eat your dinner off and full
of enough moving parts to dazzle a rocket
scientist, it wasn’t worth wearing.
So the return to elegance, understated
beauty and classic design engendered by
harsher economic times was to be wel-
comed. But that shouldn’t mean there isn’t
room for a bit of extraversion. In fact sporty,
chunky, rugged watches suddenly seem
refreshed – and in 2011 may be just what’s
needed to stand out from the crowd.
PIAGET, POLO FORTYFIVE
A chronograph watch that’s both sporty and
smoothly businesslike at the same time. The
dynamic display includes a second 24-hour time
zone, date and flyback chronograph.
£13,200 www.piaget.com
PATEK PHILIPPE, 5980R
A timely rose gold version of Patek’s charis-
matic, retro-cool Nautilus chronograph line.
£35,100 www.patek.com
WATCH NEWS IN BRIEF
BY TIMOTHY BARBER
GRAND SEIKO COMES TO THE UK
Japan’s Seiko is well known as more than a cre-
ator of quartz watches, but its highest-end pieces,
the Grand Seiko range, have only ever been sold
in Japan. After 50 years, they’re finally hitting the
international market, and Mayfair’s Jura watches
is selling them in the UK. For collectors, they’re
worth the wait. www.jurawatches.co.uk
GRAHAM, SILVERSTONE LUFFIELD
Swiss-owned but British-branded, Graham’s watches are
large and macho, with something of a military edge to
them, to which this one adds some motor racing cool.
£7,150 www.williamandson.com
HUBLOT, KING POWER SENNA
Hublot, official timekeeper of this year’s World Cup,
makes watches that are the last word in cool, extrovert
machismo. In honour of the late Ayrton Senna, its latest
piece incorporates materials used in F1 cars, and will be
available from Mayfair’s Marcus watches soon.
£18,710 www.hublot.ch
BREITLING, CHRONOMAT 01
Breitling’s watches are bold, brash and heavily influenced
by aviation. Its latest flagship watch is this sporty limited
edition Chronomat 01, which contain’s the company’s in-
house movement, the Caliber 1.
£5,880 www.breitling.com
WELCOME BACK ELLICOTT
Another brand coming to this country is Ellicott,
though it’s actually an English watchmaking
name – the original Ellicotts made timepieces for
European monarchs over 200 years ago. Now
revived in Switzerland, the brand’s small but cap-
tivating range is available at Fulham’s Watch
Gallery. www.thewatchgallery.co.uk
ON SAFARI
IN ZAMBIA
IN MONDAY’S
TRAVEL SECTION
CORUM, ADMIRALS CUP CHRONO
44 CENTRO MONO PUSHER A
Bringing sleekness and some heavy duty toughness to
Corum’s Admirals Cup line of nautically-themed watches,
this is the watch for those taking to the most gruelling of
high seas.
£5,250 www.jurawatches.co.uk
JAEGER-LECOULTRE, MASTER
COMPRESSOR EXTREME LAB 2
This chronograph watch is as tough as it is terrifically
smart. Designed for extreme conditions, its housing is
made from a highly resistant titanium alloy and its bezel
from ceramic zirconium.
£43,000 www.jaeger-lecoultre.com
PIAGET OPENS IN MAYFAIR
Easily one of the most prestigious Swiss watch
brands, Piaget has been leading the trend for
thinner watches with its Altiplano line of
watches with movements that are a mere
2.1mm thick. Next week it opens a smart new
London boutique, and not before time. 169 New
Bond Street, W1S 4AN. www.piaget.com
31
THE APPS FOR
WATCH GEEKS
Timothy
Barber
Style
Counsel
OR an industry that prides itself on being
F at the cutting edge of technological
endeavour, the watch business – or at
least, the luxury end of it – can also be
rather backward looking. Just take its attitude
to online technology – the internet has mostly
been treated with the same hostility as digital
watches once were, and the idea of selling high-
end pieces online mostly dismissed by those in
their Alpine ivory towers.
Things are changing though. Companies like
Jura Watches in Mayfair
(www.jurawatches.co.uk) and British watch-
maker Christopher Ward (www.christopher-
ward.co.uk) have demonstrated a ready market
for online selling, and the odd prestige brand –
most notably France’s Bell & Ross – has fol-
lowed suit.
However it’s in the world of the app that
companies are really noticing an opportunity to
interact with tech savvy watch fans. This
month has seen the launch of the most
involved watch app yet, by Hublot. As smartly
designed as the company’s ultra-cool watches,
the app allows you to browse the collection,
and rotate watches through 360 degrees to
inspect them from every angle. You can also
photograph your wrist via the app and see how
it would look with a Hublot watch on – a func-
tion that will also be present in Jura’s about-to-
appear app, through which you can interact
with the online shop directly. Check out Jura’s
website next week
to download it.
Other watch
apps include one
from Montblanc
that actually flies
inside the move-
ment of the
Nicholas Rieussec
chronograph; IWC,
with which you
can browse
images of the col-
lection; Boucheron,
which has lots of
jewellery to
inspect as well as
watches; and Bell
& Ross, which
allows you to have
one of its distinc-
tive watch faces as
your lock screen.
WILLIAM & SON TURNS WATCHMAKER
Talking of Mayfair boutiques, one of the
smartest, Mount Street’s William & Son, is cele-
brating 10 years of business by bringing out its
own watch. It’s a striking Art Deco-inspired piece
in 18ct rose gold, conceived by chairman William
Asprey, and only 10 – worth £11,000 each – are
being made. www.williamandson.com
 32 Lifestyle | Reviews
OUT THIS WEEKEND
PREVIEWS
FILM MUSIC
PEEPING TOM TAKE THAT
Re-release of the classic 1950s psycho thriller. Progress features all five boys in a first since 1995.
FATHERS OF GIRLS RIHANNA
One man’s daughter is another man’s lover. Rejoice: Rihanna is back with Loud, her fifth album.
DREAM HOME BRUCE SPRINGSTEEN
Gory Hong Kong horror flick. Two discs with 21 previously unreleased songs.
The darkest Harry
Potter film yet
Film
HARRY POTTER AND THE
DEATHLY HALLOWS PART 1
Cert: 12A
YHJDV FRRJDQ GDYLV hhhii
IT’S NEVER easy preceding the headline
GRFKHNKRY act, but part one of the Deathly Hallows
– JK Rowling’s final fat tome in the wiz-
ardly series that has been split into two
films – is pretty engaging, while saving
the big dramatics for next year’s finale.
It certainly sees things go in a differ-
ent direction to previous films, as
Hogwarts is left behind by Harry,
Hermione and Ron, who are engaged in
tracking down and destroying a series
of “horcruxes” – items in which evil
Lord Voldemort has stashed various
parts of his mortality. And let’s face it,
anyone who needs horcruxes explained
to them this deep into the series isn’t
going to understand an awful lot else of
what’s going on either.
Unfortunately, the whereabouts of
these enigmatic objects are still
unknown, and a large section of the
film sees the trio travelling across the
country in an epic treasure hunt.
Meanwhile Voldemort (Ralph Fiennes)
and his followers are busy trying to
hunt down the boy wizard, with the
allegiances of Alan Rickman’s
%HOLHYHLQEHWWHU Professor Snape still eerily ambiguous.
Away from Hogwarts and
Dumbledore, the rootless, unprotected
nature of the trio’s wanderings only
add to the menace of what’s cer-
tainly the darkest Harry Potter
film yet, as does an unsettling
visit to the decidedly Orwellian
Ministry of Magic.
It’s all pretty ominous –
even while the little soap
opera elements like Ron
FKHNKRYFRPHG\VKRUWV and Hermione’s develop-
ing relationship bubble
VXQGD\VDWSP away – and makes a com-
pelling watch. Some may
find that the fact that
this is clearly intended as
a prelude and not the
main event a little frus-
trating. We’ll have to
wait until the summer for
VN\FRPDUWV the real fireworks.
Rhys Griffiths
CITYA.M. 19 NOVEMBER 2010
Theatre
THE GLASS MENAGERIE
The Young Vic
hhhhi
WINTER 2010 is the perfect time for a
revival of Tennessee Williams’ The Glass
Menagerie, set in the grip of the Great
Depression. But the Young Vic’s produc-
tion has so much more going for it than
good timing. From the moment the first
cigarette (of about a zillion) is lit you can
tell Joe Hill-Gibbins’ production is going
to be magical.
Williams’s play tells the story of a sour-
thern family – matriarch Amanda,
daughter Laura and her brother Tom
(the play’s narrator, recollecting past
events) – living a hollow existence in a
cramped tenement, hoping for better
things.
The set conjures up a very believable
backstage area, complete with a costume
cupboard and a sign telling you to keep
quiet. Melodramatic Amanda (Deborah
Findlay) and her cripplingly shy daugh-
ter Laura (Sinéad Matthews, pictured)
constantly have an eye on the green door
with a star on, nervously waiting for a
long-overdue gentleman caller.
Meanwhile disillusioned Tom (Leo Bill)
protects his sister from their infuriating-
ly demanding, but ultimately forgivable,
mother.
The acting is flawless. Every heart-
string is tugged and yet there is comedy
in the most unexpected places. One per-
fectly-pitched scene switches from joy-
fulness to tragedy in the briefest
moment, with the smashing of a
glass ornament – part of the titular
collection of glass animals that are
Laura’s obsession.
Any woman who has had their
heart broken will feel for Laura,
and any man with a difficult
mother will feel for Tom. The
real clinchers, though, are the
clever staging, spot-on lighting
and small details such as a live
musician playing the glass
harp. The set highlights the
claim from Tom that this is
“truth in the pleasant dis-
guise of illusion,” a lovely sum-
mary of what we expect from
theatre. Lauren Paxman
CITYA.M. 19 NOVEMBER 2010 Lifestyle | TV& Games 33

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm CHOICE Children in Need
2010: Terry Wogan, Tess Daly
and Fearne Cotton present
coverage of the charity event
from the BBC Television Centre
in London, featuring
performances by JLS and
Cheryl Cole.
10pm BBC News
10.25pm Regional News
10.35pm Children in Need 2010:
Terry Wogan, Tess Daly and
Fearne Cotton present coverage
of the second half of the appeal
from the BBC Television Centre
in London; Weatherview
2.05am-6am BBC News
6pm Eggheads: Quiz show,
hosted by Jeremy Vine.
6.30pm CHOICE Strictly Come
Dancing – It Takes Two
7pm Live International Rugby
Union: Wales v Fiji (Kick-off
7.30pm).
9.30pm Harry & Paul
10pm Mastermind Children in
Need Special
10.35pm Newsnight
11.05pm The Review Show:
Weather
11.50pm The National Lottery
Draws
12am Later with Jools Holland
1am FILM The Spiral Staircase:
Period thriller, starring Dorothy
McGuire. 1946. 2.25am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale
7.30pm Coronation Street
8pm Cheetah Kingdom
8.30pm Coronation Street
9pm I’m a Celebrity Get Me
Out of Here!
10pm ITV News at Ten
10.30pm London News
10.35pm FILM Tango & Cash:
Action adventure, with
Sylvester Stallone. 1989.
12.30am The Zone; ITV News
Headlines
2.30am FILM The Three
Musketeers: Adventure, starring
Michael York. 1973. 4.20am-
5.30am ITV Nightscreen
6pm The Simpsons 6pm Home and Away
6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Channel 4 News 7pm Five News at 7
7.25pm 4thought.tv 7.30pm Fifth Gear: Five News
7.30pm Unreported World Update
8pm Come Dine with Me 8pm CHOICE White Van Man:
9pm The Event Five News at 9
10pm FILM Good Luck Chuck: 9pm The Mentalist
Premiere. Comedy. 2007. 10pm Law & Order: Special
12am Music on 4: Mercury Victims Unit
Prize Sessions 10.55pm CSI: Miami CHILDREN IN NEED 2010
12.15am Music on 4: The BBC1, 7PM
11.50pm Cops in Crisis
Album Chart Show: The Script 12.10am SuperCasino Terry Wogan, Tess Daly and Fearne
12.50am Music on 4: On Track 4.05am Motorsport Mundial Cotton present coverage of the charity
1.05am FILM The Serpent: 4.30am Street Market Chefs event from the BBC Television Centre
Premiere. Thriller, starring Yvan 4.55am Rough Guide to Beaches in London.
Attal. 2006. 3.05am This Week’s 5.10am Michaela’s Wild Challenge
4Music Top 20 4.55am Brothers & 5.35am-6am Michaela’s Wild
Sisters 5.40am-6.25am Countdown Challenge

SKY SPORTS 1 4am Golfing World 5am-6am BBC THREE 2.55am What About Brian Engineering 3am World War
SATELLITE & CABLE

7pm Sky Sports News at
Seven 7.30pm Live Premiership
Rugby Union 10pm Take It Like
a Fan 10.30pm Premier League
Preview 11pm-7.30am Live
International Cricket
SKY SPORTS 2
6pm European Tour Golf
7.30pm Live Victory Shield
Football 9.30pm WWE: Late
Night – Smackdown 11.30pm
WWE: Late Night – Bottom
Line 12.30am Victory Shield
Football 2.30am Take It Like a
Fan 3am Football League
Weekend 4am World Sport
4.30am Tight Lines 5.30am-
6am World Sport
SKY SPORTS 3
6.30pm Live Netball 9.30pm
Snow Ride 10pm Golfing
World 11pm Football League
Weekend 12am NFL: Total
Access 1am NFL 2.30am
European Tour Golf
Live European Tour Golf
BRITISH EUROSPORT
7pm Strongest Man 7.45pm
WATTS 8pm Poker 10pm
Winter Olympic Finish Line
11pm Freeride Spirit Show
11.15pm WATTS 11.30pm-
12.30am International Football
ESPN
7pm Goal! 7.30pm NHL Ice
Hockey 9.30pm Premier
League Preview 10pm UFC
Unleashed 11pm Poker 12am
Live NHL Ice Hockey 2.30am-
5am Live NBA Basketball
LIVING
7pm CSI: Miami 8pm Criminal
Minds 9pm Medium 10pm
CSI: Crime Scene Investigation
11pm Criminal Minds 1am CSI:
Miami 2am Four Weddings US
3am Charmed 4.40am
Exposed: Paris Hilton 5.30am-
6am Home Shopping
7pm Doctor Who 7.50pm
Doctor Who Confidential 8pm
Great TV Mistakes 10pm
Russell Howard’s Good News
10.30pm Don’t Tell the Bride
11.30pm Family Guy 12.15am
Russell Howard’s Good News
12.45am How Not to Live Your
Life 1.15am Freak Like Me
1.45am Don’t Tell the Bride
2.45am Kara Tointon: Don’t
Call Me Stupid 3.40am How
Not to Live Your Life 4.10am
Freak Like Me 4.40am Snog,
Marry, Avoid? 5.10am-5.20am
Doctor Who Confidential
E4
7pm Hollyoaks 7.30pm Friends
9pm How to Look Good Naked
10pm Natalie Cassidy:
Becoming Mum 11.05pm
Desperate Housewives 12.05am
Scrubs 1.05am How to Look
Good Naked 2am Natalie
Cassidy: Becoming Mum
3.35am Reno 911! 3.55am Two in HD Colour 3.50am Two
Switched 4.20am Accidentally Weeks in Hell 5.30am-6am
on Purpose 4.40am-6am How Does That Work?
Switched
DISCOVERY HOME &
HISTORY STRICTLY COME DANCING – IT
HEALTH
7pm How the Earth Was Made 7pm Babes in the Wood 8pm TAKES TWO BBC2, 6.30PM
8pm India: The First 10 Years Younger 9pm 18 Kids Analysis of the pro-celebrity couples’
Civilisation 9pm Britain AD: and Counting 10pm Joy of progress ahead of tomorrow night’s
King Arthur’s Britain 10pm
Sextuplets: Harris Family 11pm show, with Claudia Winkleman
World War Two Lost Films Saving Babies 12am 18 Kids reporting from the rehearsals.
12am Britain AD: King Arthur’s and Counting 1am Joy of
Britain 1am India: The First Sextuplets: Harris Family 2am
Civilisation 2am Tunnellers Saving Babies 3am 10 Years
3am Prehistoric Megastorms Younger 4am Multiple Mums
4am-5am Ancient Discoveries 5am-6am Portland Babies
DISCOVERY SKY1
8pm How Do They Do It?: 8pm Oops TV 9pm Ross Kemp
Examining the production of on Gangs 10pm House 11pm
Irish stout. 8.30pm How It’s Thorne: Scaredy Cat 12am
Made 9pm Beyond Survival Stargate Universe 1am Road WHITE VAN MAN
With Les Stroud 10pm Wheeler Wars 2.40am Oops TV CHANNEL5, 8PM
Dealers 11pm Monsters Inside 3.30am Lost 4.20am Sell Me A welder dismantles an old funeral
Me 12am Deadliest Catch 1am the Answer 5.10am-6am Are home and repairs a scooter, before
Bear Grylls: Born Survivor 2am You Smarter Than a 10 Year selling it and using the profits to take
Rory McGrath’s Best of British Old? his family to Spain.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
11 16 30 12 13 16 32 3 
21 26
 
12 13
Place the numbers from 1 to 9 in each empty cell so that each 31  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 28 15
16 22 6
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above or to the left of it. 27 15
You can only use the digits 1-9 8 38 
  and you must not use the
8
35  
same digit twice in a block. 14 34 33 4
   The same digit may occur 22 11 
11
   more than once in a row or
column, but it must be in a
17
7
7
11
8

10 14
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9 12 12 
27 29
      10 16
 

  ACROSS DOWN
1 Committee having 1 Amphibious animal
  
   WORDWHEEL D I
supervisory
powers (5)
4 Light touch or
renowned for its fur (6)
2 River mouth (5)
3 Peculiar aspect of
Using only the letters in the Wordwheel, you have
  ten minutes to find as many words as possible,
R N
stroke (3) a person’s attitude
6 Evade (5) or behaviour (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters P 7 Be of service (5) 4 Trick (9)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
A E 9 Unbearable
physical pain (7)
5 Food used in a trap (4)
8 Industry and technology
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
P I 11 Set aside (7) concerned with aviation,
satellites, etc (9)
13 Capsicum spice (7)
QUICK CROSSWORD 3 2 1 8 2 9 15 Highest female 10 Church instrument (5)
0 $ & $ 8 $ : $ 5 '
5 9 8 7 3 4 1 2 SUDOKU          voice (7) 12 Daily news publications (6)
3 7 5 1 3 7
( / 3 $ 5 / ,          16 Make a thrusting 13 Electronic device
1 6 2 1 3 5 2
7 : , * 6 5 2 2 6 7          forward that generates a
$ , 0 $ $ 2 7 8 1 7 4 6 8 9
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/ ( % $ 1 2 1 ) 5 < 3 7 1 2 5
        
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1 2 4
5 9 7
6 3
8
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1
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WORDWHEEL         
17 Not easy to
swallow (5)
14 Growth on the surface of
a mucous membrane (5)
5 7 2 0 ( 9 $         
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4 8 9 7 9 6 5 8         
, ( 1 8 1 $ '
was GODPARENT          19 Capital of France (5) in puddings (4)
( $ 5 / 6 7 $ 5 ' < 1 6 5 7 2 1
 Punter
34
SPORT TRADER BEN CLEMINSON PREVIEWS THE WEEKEND’S
FOOTBALL & DAVID WILD LOOKS AT ENGLAND V SAMOA
Local bragging rights
can go to the Gunners
ARSENAL
TOTTENHAM
TOMORROW, 12.45PM, SKY SPORTS
EVERYONE was writing off Arsenal’s title
credentials when they lost at home
against Newcastle a fortnight ago, but two
consecutive away wins and some dropped
points by their rivals have seen them close
the gap on Chelsea to just two points.
They are normally very strong at the
Emirates, but they’ve already lost to newly
promoted West Brom and Newcastle here
this season.
The north London derby is often a full-
blooded encounter and tomorrow’s game
promises to be exactly the same.
Tottenham are in seventh place in the
league, but they have lost their last two
away games and you have to go back to
1993 for the last time they won at Arsenal.
In fact, astonishingly they have now failed
to win at a Big Four side in the league in
their last 68 attempts.
Arsene Wenger will have been pleased
with his side’s response following the
Newcastle defeat and he’ll be keen to
make sure they continue their momen-
tum. His side have won 19 of their 25
home games since the start of last season
and 15 of those victories have come by at
LIVERPOOL
WEST HAM
TOMORROW, 5.30PM, ESPN
THINGS had been looking up for Liverpool
following three straight wins, but a point
from their last two away games against
Wigan and Stoke isn’t inspiring form.
However, they are a different side at
Anfield and a win against bottom-side
West Ham really should be a formality.
Avram Grant had a tough season at
Portsmouth last year, and this one looks
as though it’s going to be every bit as diffi-
cult. Although the Hammers have lost just
Red Rose set to continue momentum
ENGLAND
SAMOA
TOMORROW, 2.30PM, SKY SPORTS
DARE we say that Martin Johnson’s grand
plans to mould England into contenders
for the 2011 World Cup are finally taking
shape? The scintillating attacking display
against the Aussies last weekend suggests
so, but we must wait until after tomor-
row’s match against Samoa to gauge if
that was a one-off or the heralding of a
| Sports
least two goals. They have also won by two
or more in five of their last eight league
games hosting top-half, non-Big Four
opposition.
Arsenal’s relatively young team have
showed strong battling qualities in the
past two games and they should have too
much for a Spurs side that have struggled
away from White Hart Lane in recent
weeks. The Gunners can be backed at 4/6
with Paddy Power and that is a decent
price – especially as they have won nine of
their past 11 home meetings against
Spurs.
This will always be a big game for both
teams and their supporters, but Spurs fol-
lowers would have to be concerned that
their team have lost by the HT / FT double
result in three of their past four away
games. They have also gone down by two
two of their last eight league games,
they’ve drawn five of them, all against rel-
atively week sides. It also has to be a worry
that they’ve lost 15 of their past 25 away
games and have lost by a minimum of two
goals in five of their six trips to Big Four
outfits, scoring just once in the process.
Roy Hodgson is still under pressure, but
he knows that another run of good results
could lift his team pretty close to the top
four. That would have seemed highly
unlikely a month ago and a home game
against an out of form West Ham side is
exactly what his team need. Liverpool
have won five of their last seven games at
Anfield against bottom-six sides, with four
victories coming by at least two goals.
The Reds are also good at bouncing
back from a defeat – they have won eight
and drawn two of their last 10 home
bright new era for the Red Rose.
Samoa did get within 10 points of
Ireland last Saturday and are unlikely to
be a walkover, but if England can replicate
the intensity displayed at Twickenham
last time then an admittedly steep handi-
cap of 21 points can be overcome. The Red
Rose won by at least that margin in their
last two contests against the Samoans,
including by a 37-point gap in their last
meeting at Twickenham in 2005, so back-
ing England on the handicap at 10/11 with
Paddy Power appeals.
Quite rightly, Ben Youngs’ coming of age
and Chris Ashton’s wonder try drew most
of the plaudits last weekend but Toby
Flood’s contribution should not be over-
CITYA.M. 19 NOVEMBER 2010
...the home of form
Picture: ACTION IMAGES
clear goals in all of their last five visits to
Big Four opposition.
Arsenal always have plenty of chances
at the Emirates, but they’ll need to get on
the scoresheet relatively early if they’re to
avoid making the crowd anxious. I fancy
them to do that and to hold on for a win
in the second half, so back the Arsenal HT
/ FT double result at 7/4 on Betdaq.
We’ve already seen how poor Harry
Redknapp’s side are on the road at the top
teams, so buying Arsenal supremacy at 1.1
with Sporting Index looks the right
option.
POINTERS...
Arsenal at 4/6 with Paddy Power
Arsenal HT / FT at 7/4 on Betdaq
Buy Arsenal supremacy at 1.1 with Sporting Index
games when they have lost their previous
league match, with five wins by two or
more goals. They are as short as 2/5 with
Paddy Power in the outright market, but
the Irish firm offer 5/4 about a Liverpool
win to nil and that looks appealing with
the Hammers only finding the next once
in their last six games at Big Four
opposition.
Punters can also have a go at the HT / FT
home win at 11/10 on Betdaq, while
spread bettors are advised to buy
Liverpool supremacy at 1.25 with
Sporting Index.
POINTERS...
Liverpool to win to nil at 5/4 with Paddy Power
Liverpool HT / FT at 11/10 on Betdaq
Buy Liverpool supremacy at 1.25 with Sporting Index
looked. The Leicester fly-half barely made a
questionable decision with ball in hand but
with his right boot he was flawless. Nine
place kicks saw him record 25 points – the
highest by a single player ever between
England and Australia – and a make-up of
259 metres on Sporting Index’s England
kicking metres market. The firm quote 175-
185 versus Samoa and if we assume that
England will cross the try-line several
times, Flood can be relied upon to convert.
POINTERS...
England to win with 21pt handicap at 10/11
with Paddy Power
Buy England kicking metres at 185 with Sporting Index
 CITYA.M. 19 NOVEMBER 2010
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND
What A Friend
Sir Alex has in
tomorrow’s
Betfair Chase
I
T WAS nice to finally be back
amongst the winners last week and I
hope you managed to snap up some
of the 15/2 available about Menorah
early on Sunday morning. Long Run was a
little disappointing in the Paddy Power
Gold Cup, but all those who followed our
each-way tip on Poquelin were in the
money if they backed Paul Nicholls’
charge at 20/1 with the sponsors who paid
down to fifth place.
Looking ahead to this weekend’s action
and it won’t be the last time this season
we focus on the Paul Nicholls camp in our
search for the winner of the feature con-
test. The Champion trainer saddles the Sir
Alex Ferguson-owned WHAT A FRIEND in
the Betfair Chase (3.25pm) and the seven-
year-old looks decent value at 7/2 with
Paddy Power to defeat Cheltenham Gold
Cup winner Imperial Commander in the
£200,000 contest.
Our selection was last seen in action at
Aintree last term winning the Totesport
Bowl, having won the Lexus Chase in
Ireland on his previous start. The young-
ster is quickly rising to the very top of the
chasing tree and he could well be
Ditcheat’s main Gold Cup hope come
March.
Last year’s painfully unlucky runner-up
Imperial Commander will be a very tough
nut to crack and his trainer Nigel Twiston-
Davies has reported him to be in rude
health. However, he is currently trading at
as short as 4/6 and, even though he is the
most likely winner, there may not be as
much between him and What A Friend as
the betting would suggest.
Elsewhere on Haydock’s card, I like the
look of CLERK’S CHOICE in the 1.50pm. He
absolutely bolted up at Cheltenham last
time and is now quoted as short as 25/1 for
the Champion Hurdle. He comes from
Michael Banks’ small stable of just six
horses, but don’t let that put you off. He
demolished the well-regarded Royal Mix
by 21 lengths last time and could be top
class.
JAMES DE VASSY looks very interesting
in the 2.50pm handicap hurdle for Nick
Williams. The stable is in fine fettle, he
INSIDER
the
F
OR ME it really is back to getting the
All Weather form sorted and trying to
pick off some good value winners over
the winter months. I like the jumps but
I have found over the past few seasons that
the flat offers some great value at this time
of year.
The races that catch the eye are the Class
2 & 3 handicaps over five to 10 furlongs.
Tomorrow there is a very interesting seven
furlong handicap at Lingfield (2.30pm). Elna
Bright could bounce back to form with
Kieren Fallon on board but based on his last
two runs I think we can discount him. Bravo
Echo and Yer Woman need to drop a few
more pounds, while Autumn Blades may not
be fully tuned up.
The Punter | Racing 35
HAYDOCK TOMORROW live on Channel 4
3.25 BETFAIR CHASE (GRADE 1) 3m £112,660 GOING: GOOD TO SOFT (Soft in places)
1 1/0PP-F ATOUCHBETWEENACARA (10)
Miss V Williams Paul Beck
2 37011- CHIEF DAN GEORGE (249)(C)(D)
supplied by RACING POST
9 11-7 A Coleman
10 11-7 P Aspell
100-1
100-1
J Moffatt Maurice Chapman
3 P251U- IMPERIAL COMMANDER (226)(BF) 9 11-7 P Brennan 8-11F
N Twiston-Davies Our Friends In The North
4 8P423-1 NACARAT (21)(D) 9 11-7 P Moloney 7-1
T George Simon W Clarke
5 12F01- PLANET OF SOUND [T] (213) 8 11-7 R Johnson 8-1
P Hobbs C G M Lloyd-Baker
6 24174-3 TIDAL BAY (21)(D) 9 11-7 B Hughes 33-1
J H Johnson Andrea & Graham Wylie
7 61/211- WHAT A FRIEND (226)(D) 7 11-7 S Thomas 3-1
P Nicholls Ged Mason & Sir Alex Ferguson
goes on all types of ground and has won
on his reappearance in the last two sea-
sons. Another who goes well fresh is
Charlie Longsdon’s PALYPSO DE CREEK
(2.20pm) and he ran a stormer to finish
second to Our Vic in the Peter Marsh
Chase here last season. He fell late on in
the Grand National when beaten, but this
is more his level and he is still relatively
unexposed.
Over at Ascot, MASTER MINDED should
have too much speed and class for
Albertas Run over 2m3f in the Amlin 1965
Chase at 2.05pm. It may just be that he
needs an extra couple of furlongs these
days and he could end up going for the
Ryanair at the Festival. However, the best
bet at the Berkshire track tomorrow is
ZAYNAR in the Coral Ascot Hurdle at
2.35pm. He won this race easily last year
and although he has to give weight to the
majority of his rivals, I expect him to win
again.
Finally, Alan King’s yard is absolutely
flying at present and his MILLE CHIEF
looks like an each-way bet to nothing in
this afternoon’s 3.55pm at Ascot. His train-
er thinks he could be Champion Hurdle
class, but the problem is that he’s taking
on Aegean Dawn who was hugely impres-
sive at Cheltenham last Friday and is due
to go up 21lb in the future. However, Mille
Chief would have needed the run on his
reappearance at Aintree and will strip
much fitter today.
Newbury’s fantastic three-day Winter
Festival kicks off on Thursday and I’ll be
there on Gentlemen’s Day on Friday.
Denman goes for an unprecedented third
Hennessy win on the Saturday, but I’ll
hold off on my tips for the big race until
next week.
POINTERS...
MILLE CHIEF e/w 3.55pm Ascot (today)
CLERK’S CHOICE 1.50pm Haydock (tomorrow)
MASTER MINDED 2.05pm Ascot (tomorrow)
PALYPSO DE CREEK e/w 2.20pm Haydock (tomorrow)
ZAYNAR 2.35pm Ascot (tomorrow)
JAMES DE VASSY e/w 2.50pm Haydock (tomorrow)
WHAT A FRIEND 3.25pm Haydock (tomorrow)
All the runners would have to be at their
peak to beat Malcheek in a seven furlong
dash on Polytrack but on this occasion I
reckon the draw (14 of 14) may be his undo-
ing. It therefore leaves the door ajar for
WOODCOTE PLACE (5% win) to break his
duck (0 from 10) on Polytrack. Richard
Kingscote gets the leg up on Pat Chamings’
runner. With a 20% strike rate (47-232
rides) over the past five seasons, Kingscote
should have the course knowledge to get
this son of Lujain home in front.
The Listed contest at 3.05pm is an intrigu-
ing race and I like the look of NIDEEB (5%
win), who bolted up at Kempton recently
and can show further improvement here to
take the prize.
 Sport
36 CITYA.M. 19 NOVEMBER 2010

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SPORTS EDITOR FRANK DALLERES

email sport@cityam.com

21-28 NOVEMBER The O2 LONDON Gerrard was only

supposed to play
for an hour
against France.

Picture: ACTION
IMAGES

Gerrard out
for a month
decision to renege on the agreement
▲

FOOTBALL
BY JAMES GOLDMAN
LIVERPOOL captain Steven Gerrard
faces up to a month on the sidelines
with the hamstring injury he suf-
fered playing for England on
Wednesday.
Dr Peter Brukner, Liverpool’s head
of sports medicine and sports science,
confirmed the midfielder’s injury
was “significant”.
“Steven’s been in for an early assess-
ment here and it certainly looks like a
significant hamstring injury,” said
Brukner. “He’s going to be out for
three to four weeks I’d imagine.”
Gerrard was only expected to play
for an hour against France, but
injuries to other senior players meant
he stayed on until the 84th minute.
England manager Fabio Capello’s
prompted a furious response from
Liverpool’s head of fitness and condi-
tioning Darren Burgess, who branded
the decision to keep Gerrard on as
“amateurish” and “disgraceful”.
However, Brukner took a more rea-
soned approach. He said: “You have
got to accept how long they want you
to play for. There were obviously cir-
cumstances which came together to
result in Steven playing for longer
than we’d hoped.”
“There were obviously circumstances
GERRARD | THE GAMES HE’LL MISS
20 Nov, West Ham (h); 28 Nov,
Tottenham (a); 2 Dec, Steaua
Bucharest (a); 6 Dec, Aston Villa (h); 11
Dec, Newcastle (a); 15 Dec, Utrecht (a)
18 Dec, Fulham (h).

SEE FEDERER IN ACTION FOOTBALL | IN BRIEF

THIS SUNDAY EVENING Chelsea promote Emenalo
MICHAEL EMENALO has been appointed
the tune of £105m. Building work is due to
finish in the summer of 2012 with the FA
Chelsea’s assistant first-team coach fol- aiming to use it as a coach education cen-
LAST TICKETS REMAINING lowing the departure of Ray Wilkins last
week. Emenalo had been working as head
opposition scout for the club since October
tre. “St George’s Park will be a world-class
facility,” said National Football Centre
chairman David Sheepshanks. “St George’s
2007 but will now make the transition to Park won’t be an instant panacea for all
www.BarclaysATPWorldTourFinals.com coaching. Chelsea confirmed the move in a
statement: “Chelsea are pleased to
the ills of English football, but it will be a
catalyst for a step change in the way we
announce the appointment of Michael educate our coaches.”
Emenalo to the position of assistant first-
team coach. He moves up from his previ- Whyte confirms Rangers interest
ous post of head opposition scout.” RANGERS officials have confirmed that
chairman Sir David Murray is in “early
FOR CORPORATE HOSPITALITY, PLEASE CONTACT IMG ON 020 8233 5888
Work to begin on National Centre talks” with London-based investor Craig
OR ATPTennis@imgworld.com. Follow the stars on their journey to compete at the
BUILDING work on the National Football Whyte over a possible takeover of the
2010 ATP World Tour season finale on Check website for order of play.
Centre in Burton will begin in January, club. A statement from Whyte’s solicitor
Qualification and participation subject to ATP rules.
the Football Association has announced. read: “Mr Whyte confirms that he is con-
The FA board has unanimously approved sidering making an offer for RFC and is in
plans for the much-delayed centre and talks with Murray International Holdings
also agreed to underwrite it financially to but these are at an early stage.”
CITYA.M. 19 NOVEMBER 2010
Cameron lends
hand to England
World Cup bid
▲
FOOTBALL
BY FRANK DALLERES
PRIME MINISTER David Cameron has
embarked on a charm offensive after
England’s ailing bid to host the 2018
World Cup suffered further blows yes-
terday.
England is thought to have lost at
least one vote, perhaps two, after gov-
erning body Fifa banned two top offi-
cials, Amos Adamu and Reynald
Temarii over corruption allegations.
To make matters worse, the chair-
man of Fifa’s ethics committee then
launched an attack on the English
newspaper that probed Adamu and
Temarii, increasing fears a backlash
against English media could affect
support in the 2 December vote.
With Adamu and Temarii’s bans
trimming the number of votes to be
cast from 24 to 22, currying favour
with the remaining members of the
all-powerful executive committee has
become even more fundamental.
Cameron, knowing this, yesterday
telephoned Jack Warner, one of the
most powerful members of the com-
mittee, in the latest attempt to woo
him before next month’s decision.
“He called to ask me for my sup-
port for the English bid and he asked
me to join him for lunch next week
Thursday,” said Caribbean Warner.
Adamu was banned from all foot-
ball activity for three years and
Temarii for one, while both were
fined four-figure sums. The pair were
accused by the Sunday Times of ask-
ing for money in exchange for votes.
ANALYSIS | ENGLAND’S CHANCES
Some positive remarks in Fifa reports
had this week given England renewed
hope, but yesterday’s events dampened
spirits again. Serious doubts remain that
England’s bid will have enough support
to beat Spain/Portugal and Russia.
37
BELL CHIMES IN WITH A CLASSY CENTURY RUGBY | IN BRIEF
Jones lauds Welsh scrum
DEINIOL JONES hopes Wales contin-
ue to exhibit their scrummaging
power against Fiji tonight. The Welsh
pack destroyed Australia’s eight two
weeks ago, and held its own when
world champions South Africa came
calling seven days later. Cardiff Blues
lock Jones is among five changes in
the forwards for tonight’s Millennium
Stadium clash. He said: “The scrum is
an area where Wales have been
strong so far this autumn. We need to
press our cases forward.”
Kidney wants to reduce errors
IRELAND head coach Declan Kidney
knows his side cannot repeat the
errors they made in their recent 23-21
defeat against South Africa if they are
to topple the mighty All Blacks tomor-
row. “We know our error count
against South Africa was too high and
that’s what we’ve been trying to recti-
fy,” he said.
Hines’ experience is crucial
SCOTLAND will hope the experience
trio Nathan Hines, Chris Paterson and
Nikki Walker have of beating the
Springboks will prove key when the
sides clash at Murrayfield tomorrow.
Scotland scored a 21-6 victory over
the world champions eight years ago,
IAN BELL underlined his growing importance in the England batting line-up with a with wing Walker scoring one of his
superb century against Australia A yesterday. The Warwickshire right-hander, tradition- four Scotland tries. "I’ve had more suc-
ally identified as a weak link by the Aussies, missed most of the summer with a broken cess against South Africa than any
foot, but looked in fine fettle against a decent attack on a green pitch. Kevin Pietersen’s southern hemisphere team, so that’s a
form, however, continues to be a worry. He was dismissed for just five. Picture: PA big boost for us,” said Hines.
 38 Sport CITYA.M. 19 NOVEMBER 2010

Bath stars are ready

to take centre stage
Johnson’s decision to rest key men against Samoa will allow
club colleagues Hape and Banahan to shine, by James Goldman
He said. “Me and Shontayne have
ENGLAND got a good link and understanding
from playing together at Bath. We’ve
also spent three months as room-
SAMOA mates together so I think we know
each other inside out.
“It’s a matter of trust out
slate. Obviously we don’t want to for-
get about the positives of last week
but we need to kick on. Samoa are no
pushovers, all of their players are
tough and lots of them play in Super
14 teams and top Premiership sides.
“In international rugby you want

B
ATH centres Matt Banahan and
Shontayne Hape believe their
close off-field relationship will
help them develop a midfield
partnership that will benefit England
for years to come.
With veteran World Cup winner
Mike Tindall being afforded the week
off by manager Martin Johnson, the
Bath axis of Kiwi-born Hape (right)
and Jersey giant Banahan will get the
opportunity to translate their club
from onto the international stage
against Samoa tomorrow.
The decision to play Banahan at
centre – his previous five England
appearances all came on the wing –
represents something of a bold move
by Johnson and 23-year-old Banahan
is glad he’ll have a familiar figure in
Hape alongside him.
their in the midfield so it’s
good to have him there.
We’re looking forward
to it and it’s a chance
we want to take
with both hands.
“We want to
carry in the
form we’ve
shown togeth-
er in the
Premiership. Obviously I
want to stake my claim.”
Johnson has already publi-
cally warned his players not
to rest on their laurels follow-
ing last weekend’s uplifting
win over Australia and Banahan
is certainly expecting a tough
encounter against Samoa.
He said: “We want to cut a clean
to win every game, you don’t need
any more motivation than that.”
Standing at 6ft 4in and weighing
in at 18 stone, Banahan should be
better prepared than most to cope
with the physical challenge the
Pacific Islanders will present, and
Hape has given his club colleague
and roommate a vote of confi-
dence.
He said: “He’s had a massive
ride in his career, starting some-
where in the forwards.
“He can play anywhere. He’s
such a specimen, you don’t
want to mess with him.
Luckily I room with him in
the England camp so I
know him on a personal
level. He’s up for this
challenge.”

England new boys will be out to prove points

the Test to experiment. Here are three
men who’ll be out to impress.
NICK EASTER
As captain in place of the rested Lewis
Moody, Nick has a vital role. Chiefly
he must make sure England play with
the same attitude that they did in last
RUGBY UNION COMMENT weekend’s win over Australia – one of
the best games the national team
KYRAN BRACKEN have played in more than a decade.
They’ll have one eye on the South
will also be wary of their tackling; the
medical team will be on red alert.
Easter has become a talisman and
was exceptional last week.
Enthusiasm is key: the Australia win
bred it, and England must continue
to play with it in order to maintain
their momentum and have a good
chance of beating the Springboks.
JAMES HASKELL
Regarded as an easy pick in the last
across the Channel at Stade Francais,
he is extremely dangerous and carries
the ball well. He is the sort of player
who should be in the England team
and on his day would be in the back
row. The flanker has a massive point
to prove tomorrow.
MATT BANAHAN
Once billed as England’s answer to
Jonah Lomu, Banahan’s career has
stuttered a bit. Chris Ashton and
fairly quick and powerful, so should
offload well. The centre partnership is
something England seem less sure
about, and trying Banahan is a gam-
ble, but this is the right game for it.
VERDICT
England will win but the questions
are: can they follow up last week’s
dazzling performance, and how
many players will emerge unscathed?
Kyran is hosting a rugby business breakfast

A
FEW of England’s players have
a particular point to prove
against Samoa tomorrow,
with Martin Johnson using
Africa match next week, but need to few years, James has been looking for- Mark Cueto have nailed down the on 2 December themed ‘Managing Change’
remain fully focused because Samoa lorn on the bench this autumn wing spots, while Banahan has been where he will be in conversation with
have some very talented individuals, having lost his place in the side. reinvented as a centre. He won’t out- England captain Lewis Moody; www.game-
as their sevens teams show. England When he is on form, as he has been run the Samoan defence but he is plansolutions.co.uk
CITYA.M. 19 NOVEMBER 2010 Sport 39

SPORTFOOTBALL
Banaham has been
moved from the
wing to centre by
Johnson.

Picture: GETTY

Van der Vaart

has become a star
for Spurs.

Picture: ACTION
IMAGES

Van Persie: I advised Arsenal to sign Van der Vaart

Persie. “I know the quality he has. I’d first start since 28 August.
▲

FOOTBALL
BY FRANK DALLERES
ARSENAL striker Robin van Persie has
added further spice to tomorrow’s
north London derby by revealing he
begged manager Arsene Wenger to
sign Rafael van der Vaart.
Holland playmaker Van der Vaart
has been a revelation at Tottenham
since joining in September and will
pose the visitors’ biggest threat when
they clash at Emirates Stadium. But
the mercurial midfielder could have
been dancing through defences in an
Arsenal shirt instead, had Van Persie
succeeded in persuading Wenger to
move for his international team-mate.
“He’s a great footballer,” said Van
rather have him at Arsenal. I indicat-
ed a couple of times Rafael would be
useful for Arsenal but that advice was
not followed. I regret the fact he
wasn’t signed, but it is the right of the
club. This is just my opinion. Now you
can see the result. Spurs were a good
team but now they are a top team.”
Van Persie and Van der Vaart were
team-mates for Holland two days ago
but are now preparing to do battle in
a lunchtime kick-off that could see
the Gunners go top of the Premier
League, at least for a few hours.
The Arsenal forward played 45 min-
utes in that friendly win against
Turkey as he steps up his recovery
from injury, and is in contention for a
Wenger is hopeful midfielder Jack
Wilshere will recover from a back
problem. Spurs striker Jermain Defoe,
who also missed England’s friendly
defeat to France, is back in training
and could be set to return.
FRIENDS REUNITED
TURN TO
Other international colleagues crossing
PAGES
swords tomorrow: Bacary Sagna, Gael
Clichy, Samir Nasri take on fellow France
36 & 37
stars Younes Kaboul and William Gallas;
Russians Andrey Arshavin and Roman
FOR MORE
Pavlyuchenko, Cameroon’s Alex Song
and Benoit Assou-Ekotto.
FOOTBALL