BUSINESS WITH PERSONALITY
LONDON GETS WEDDING
Issue 1,370 Tuesday 26 April 2011
■ Gold touches a
fresh high of $1,518.6
per troy ounce
■ Prices for silver
and diamonds also
near record highs
GOLD
▲
BY JULIET SAMUEL
THE PRICE of gold surged to yet anoth-
er all-time high yesterday as growing
fears over a weaker dollar sent
investors scrambling for the safest
asset class of all.
Gold hit an unprecedented $1,518.6
per troy ounce in morning trading
yesterday. It eventually fell back to
$1,507, although some traders predict
it will hit $1,600 by the end of the year.
Silver also surged, with spot prices
reaching $49.82 an ounce – close to
the all-time high of $50.35 recorded in
January 1980. It eventually fell back to
$47.09.
The greenback has come under
heavy selling pressure ahead of this
week’s Federal Open Market
Committee, with markets expecting
chairman Ben Bernanke to reiterate
his commitment to easy money.
Long-standing gold bug Jim Grant,
FTSE 100 t6,018.30 -3.96 DOW t12,479.88 -26.11
GIFT WORTH £107M
WILLS & KATE BOOST CAPITAL P5
ANALYSIS l I gold you so!
USD
1,500
1,480
1,460
1,440
1,420
28 Mar 4 Apr
the founder and editor of Grant’s
Interest Rate Observer, said he was
expecting a third round of quantita-
tive easing in the US, which would
propel gold to new highs.
The greenback also slid against
commodity currencies, diving to a 29-
year low of A$0.9291 versus the
Australian dollar and a three-year low
of C$0.9503 versus the Canadian
loonie.
Analysts blamed the buck’s unpop-
ularity on the Federal Reserve’s ongo-
ing inflationary monetary policy,
NASDAQ ▲2,825.88 +5.72
VOICE OF
www.cityam.com
11 Apr 18 Apr 25 Apr
anxieties about US government debt The market has also been influ-
and suggestions that China is moving enced by fears that China is planning
to limit its exposure to the greenback. several new investment funds to
BNP Paribas’ Ray Attrill said “it’s a diversify its $3 trillion foreign
weak dollar story”. “We don’t see any reserves holdings, much of which is in
imminent reversal unless Mr dollars.
Bernanke has got a rabbit to pull out Diamonds are also reckoned to have
the hat,” he added, referring to the reached record highs on the back of
Fed’s interest rate-setting decision. slowing production and increased
Economists say that sky-high pre- demand from China and India, while
cious metals prices are here to stay as WTI crude oil rose to over $113 a bar-
desperate investors rush towards per- rel due to ongoing fears about politi-
ceived “safe havens” to escape the cal turmoil in the Middle East.
damaging effects of inflation. THE FALLING DOLLAR: P19
£/$ 1.65 ▲+0.02 £/¤ 1.13 unc ¤/$ ▲1.46 +0.01
THE CITY
IMMIGRATION
CAP WILL HURT
ECONOMY P9
FREE
Private firms
could run
universities
▲
POLITICS
BY DAVID CROW
STRUGGLING universities could be
taken over by private firms when the
government cuts off financial support
for troubled institutions.
Under the radical plans, vice-chan-
cellors would be asked to pay a man-
agement fee to profit-making private
firms, who would run the university
on a day-to-day basis for a period of ten
years or more.
The private contractor would then
be tasked with nursing the institution
back to financial health, likely by
ditching unpopular or unprofitable
courses and slashing costs.
Traditionally, the government has
stepped in to prop up cash-strapped
institutions or negotiated mergers
with stronger rivals. But a double-
whammy of huge cuts to teaching
grants and higher tuition fees of up to
£9,000 will put renewed pressure on
some weaker universities.
The idea is to be included in a White
Paper to be published by universities
minister David Willetts, who said pri-
vate sector management was “one pos-
sible way in which a failing institution
could be turned round”.
BPP, the private for-profit firm that
was granted university college status
last year, has said it is interested in run-
ning universities and is understood to
be in talks with several struggling
establishments.
A government source told City A.M.
that private providers would also be
more likely to slash fees to compete
with other universities.
Certified Distribution
28/02/11 - 03/04/11 is 105,180
 2 News
China may be larger than US by 2016
EDITOR’S LETTER
ALLISTER HEATH
IF the International Monetary Fund is
right, whoever is elected President of
the United States next year will be the
last American to preside over the
world’s largest economy. By 2016, the
IMF believes, China will have overtak-
en the US as the biggest economy –
the first time it actually pins a year on
this key event, and a date far closer
than previously realised.
China’s GDP will surge from $11.2
trillion to $19 trillion in 2016, account-
ing for 18 per cent of world output.
The US will grow, but not enough: its
output is predicted to jump from
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Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
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Jeremy Slattery
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WHAT THE OTHER PAPERS SAY THIS MORNING
MPS PRESSURE VICKERS TO
DEFINE BANK BONUS RULES
Sir John Vickers is facing pressure
from senior MPs to widen his work on
making banks safer by defining new
bonus transparency rules, to provide
an early warning of the build-up of
risk. Members of the Commons treas-
ury committee will next month urge
Sir John to ensure that his commis-
sion’s final report on Britain’s bank-
ing industry contains much tougher
scrutiny of the role bonuses play in
creating systemic risk.
CIC SET FOR UP TO $200BN IN
FRESH FUNDS
China Investment Corp, the Chinese
sovereign wealth fund, will soon
receive $100bn-$200bn in new funds
from the government, according to
three people familiar with the mat-
ter. CIC, which has already fully allo-
cated the $110bn it had available for
$15.2 trillion to $18.8 trillion, just 17.7
per cent of global GDP. It’s heady stuff,
with huge implications for global
prosperity, investors, corporate strate-
gies, individual careers, geopolitics
and the future of liberal democracy.
No wonder gold futures hit another
record yesterday – and that the green-
back is under such pressure.
Two caveats are in order. The first is
that the stats are adjusted for purchas-
ing power parity: a dollar goes much
further in China than it does in the US
and Chinese GDP figures are adjusted
to reflect this. At existing exchange
rates, it would take longer for China to
overtake the US – but economists pre-
fer to use the adjusted numbers as
they reflect relative wealth better.
The second caveat is that the IMF,
like all forecasters seeking to predict
the unpredictable, regularly gets it
wrong. China is suffering from exces-
sive inflation; its housing market
remains a bubble and its GDP statis-
tics (and all official figures) are suspi-
cious. It remains unclear whether the
US condemns
Syria violence
MIDDLE EAST CRISIS
▲
BY STEVE DINNEEN
SYRIAN troops and tanks poured into
protester hotspot Deraa yesterday as
autocratic President Bashar al-Assad
attempted to crush resistance in the
city where an uprising began a
month ago.
At least 18 people were killed, caus-
ing the White House to condemn the
use of violence and threaten to
impose “targeted sanctions”.
Security forces have killed more
than 350 civilians across Syria since
unrest broke out in Deraa, with a
third of the victims killed in the past
three days.
Meanwhile, at least two Nato
bombs hit Gaddafi’s Tripoli head-
quarters last night, with the alliance
appearing to escalate its campaign in
the country. Fighting continued to
offshore investments, is to get the
new money as Beijing seeks to reduce
its exposure to US government debt.
LENOVO TO EXPORT ITS
RURAL EXPERTISE
Lenovo is kicking off an aggressive
campaign to penetrate rural markets
in five developing countries, seeking
to challenge competitors such as
Hewlett-Packard, Dell and Acer using
the recipe behind its recent successes
in its Chinese home market. The PC
maker plans to build a vast distribu-
tion network to “fully cover” rural
areas in Indonesia, Brazil, Mexico,
India and Turkey during the next
three years.
LAWSON SOFTWARE CLOSE TO
DEAL WITH INFOR
Lawson Software is close to agreeing a
deal with Infor, another business soft-
ware company, and Golden Gate
Capital, after last month revealing it
had received an approach from the
pair.
present monetary tightening will be
enough to avoid a massive, sub-prime
style financial and credit crisis, which
could yet destroy the Chinese regime.
We shall soon find out.
THINK MACRO, ACT MICRO
It is not all bad news, though. Since 11
April, 71 per cent of MCSI World Index
firms reporting profits have beaten
analysts’ estimates for earnings per
share, according to Bloomberg. The
188 giants (from all over the world)
have on average smashed expectations
by 8.8 per cent, thanks primarily to yet
another quarter of strong productivity
and efficiency growth. Demand has
also been rising, of course, led by
emerging economies as well as
Germany, Europe’s new powerhouse.
The real surprise has been that the
explosion in commodity costs – led by
oil – has done so little, on average, to
dent the earnings bonanza.
The poster-child of the uber-per-
formers was Apple, which boasted
quarterly profits up 95 per cent with
rage between rebels and pro-govern-
ment forces in the besieged Libyan
city of Misrata.
Forces loyal to Gaddafi said they
were pulling back from Misrata last
week to hand over to local tribal
forces. But fighting has continued in
a two-month-old siege that has killed
hundreds of civilians and made the
city into a symbol of resistance to
Gaddafi.
Clashes between protesters govern-
ment forces in Yemen also killed two
people and injured dozens more as a
fresh wave of violence broke out.
Syrian President
Bashar al-Assad could
see US sanctions
imposed after 18 more
deaths in Deraa
COVENTRY AIMS TO TURN ROCK BACK
INTO A BUILDING SOCIETY
Coventry Building Society is prepar-
ing a publicity campaign to persuade
politicians to allow it to take over
Northern Rock’s “good” bank. The
society has gone through the num-
bers on a possible transaction, lead-
ing it to believe that it would need
only about £200m in new capital to
merge with Northern Rock. It has car-
ried out a secret poll asking whether
the public would support the nation-
alised bank becoming a mutual,
which produced a positive result.
LEGAL ROW BREWING
WITH STANFORD CREDITORS
A legal row is brewing in London over
the fate of more than $100m held in
frozen bank accounts connected to
the disgraced American financier
Allen Stanford. The US Government
wants the funds repatriated.
iPhone sales more than doubling;
Google, by contrast, performed less
well, partly because it has been spend-
ing far more on staff. Wall Street wor-
ried a little yesterday after some firms
trimmed their outlooks – but the over-
all picture is remarkably resilient.
Once again, the world’s largest compa-
nies stand apart from the rest of the
economy in terms of their ability to
grow, boost efficiency, innovate and
make money. There are worries that
the US economy may have expanded
by just 2 per cent or less annualised
during the first quarter (0.5 per cent
on a quarterly basis), while on
Wednesday we will find out how
Britain has done (there is a huge range
of predictions, with economists even
more confused than usual). There are
no such fears when it comes to multi-
nationals as a class. For investors, the
lesson is clear: in an upswing, big
firms do better than countries. Think
macro – but act micro.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Rajaratnam fought unsuccessfully to suppress the wiretaps used in court.
Jury out in Galleon case
COURTS
▲
BY HARRY BANKS
THE fate of hedge fund manager Raj
Rajaratnam was in the hands of a jury
yesterday, after Wall Street’s biggest
insider-trading trial in two decades
approached its climax.
In a case that featured FBI phone
taps and former friends who testified
against him, Rajaratnam, the founder
of the Galleon Group hedge fund, was
accused of running a complex web of
highly placed tipsters, including
RAIL COMPANIES ‘SHOULD BE ABLE TO
INCREASE FARES’
Rail companies should be allowed to
introduce “airline-style fares” that
could see them charging hundreds of
pounds for tickets during peak times
and banning passengers without pre-
booked seats from travelling, a
Government review is set to recom-
mend.
CABLE & WIRELESS WINS EMERGENCY
CONTRACT IN MURDER CAPITAL
Cable & Wireless Communications
has turned crime-fighter in El
Salvador – the country with the
world’s worst murder rate. Under the
programme, it will be possible to
monitor the location of every police
unit in the country at all times via
tracking devices. The US government
rates El Salvador as a “critical crime
threat country” where “random and
organised violent crime is endemic”.
CITYA.M. 26 APRIL 2011
NEWS | IN BRIEF
Fraud panel criticises SFO plans
The Fraud Advisory Panel has slammed
the break-up of the Serious Fraud Office
(SFO). In a Treasury consultation sub-
mission it said the planned changes
“would be a wholly unwise and danger-
ous move in our view that would benefit
only the criminal and be an enormously
retrograde step in the fight against
financial crime.” Under government
plans the SFO will be dismantled and its
responsibilities split between the Crown
Prosecution Service, which will charge
cases, and the new National Crime
Agency, which will be tasked with inves-
tigating alleged offences.
Lloyds and Grainger in property deal
Lloyds Banking Group will work with
Grainger in a tie-up that will see the res-
idential landlord manage a portfolio of
homes on behalf of administrators. The
innovative system will help return value
to thousands of non-performing loans
from Lloyds-backed housing groups that
have fallen into administration. Non-per-
forming loans from Lloyds’ so-called
bad-bank, some of which is comprised of
former buy-to-let loans backed by
HBOS, are worth more than £500m.
hedge fund colleagues and public
company executives, between 2003
and March 2009. Prosecutors said he
made $63.8m (£38.7m) illegally.
Rajaratnam’s defence countered
that his trades were guided by analysis
and public information.
Jury deliberations began yesterday
in the Manhattan federal court trial.
Rajaratnam, 53, faces five counts of
conspiracy and nine counts of securi-
ties fraud for trading on stocks such as
Advanced Micro Devices, Intel, Google
and Goldman Sachs Group.
ORACLE'S FINANCE CHIEF RESIGNS
Oracle said its chief financial officer
had resigned and will be immediately
succeeded by the company’s co-presi-
dent, the latest executive switch at
the large software maker. The execu-
tive, Jeff Epstein, joined Oracle in
September 2008 and oversaw investor
relations in addition to the compa-
ny's finance operations. His duties
will be added to those of Safra Catz,
the co-president who was his immedi-
ate superior.
FDA WILL REGULATE E-CIGARETTES AS
TOBACCO PRODUCTS
The Food and Drug Administration
said yesterday that it wouldn’t appeal
a January federal court ruling stating
that electronic cigarettes should be
regulated as tobacco products, not
drug delivery devices, in a move that
was hailed as a victory for e-cigarette
manufacturers and distributors.
CITYA.M. 26 APRIL 2011 News 3

Investors on tenterhooks to
see Glencore’s Xstrata plan
cial position. That means Glencore spin-off,” said a source.

▲
COMMODITIES
BY JULIET SAMUEL
GLENCORE will be forced to disclose
whether it has imminent plans to
merge with FTSE 100 miner Xstrata in
its float prospectus, due to be
released in the first week of May.
UK listing law requires companies
to provide a summary of “all material
contracts” with external parties that
could substantially affect their finan-
will have to declare if it has advanced
plans to pursue a merger with
Xstrata, of which it owns 34 per cent,
in the next quarter.
The commodities trader will also
need to update investors on the status
of plans to spin off the gold unit of
Kazakh miner Kazzinc, of which it
currently owns 50.7 per cent.
“They’ll have to say something on
both Xstrata and the Kazakh gold
Glencore said in its intention to
float document that it will use some
proceeds from its float to increase its
stake in Kazzinc to 93 per cent, with
an option to buy 6.4 per cent more if
it manages to float Kazzinc’s gold
assets.
In 2010, Glencore announced plans
to float the assets “during the course
of 2011” in a deal that aims to raise
some $600m (£364m).

Glencore, run by chief executive Ivan Glasenberg, will have to tell prospective investors
whether it plans to merge with FTSE 100 miner Xstrata Picture: GETTY

Barrick Gold
makes £5bn
copper push
needs of China and other developing
▲

MINING
BY STEVE DINNEEN
RIO Tinto and BHP Billiton could soon
face a new copper-mining rival after
Barrick Gold announced a £4.7bn bid
for Australia-based Equinox
Resources.
Canada-listed Barrick’s bid topped
an earlier offer from China’s
Minmetals Resources in a big bet on
soaring copper demand. It represents
the miner’s first major push outside
its core gold-mining business.
Equinox shares jumped nearly 12
per cent in Toronto after the
announcement yesterday, signalling
some expectation of a counter-bid
from the Chinese metals powerhouse.
Barrick shares shed five per cent, sug-
gesting not all investors agree with
the move to diversify.
Already the world’s largest gold
miner, Barrick will double its position
in copper with the acquisition.
Prices for the industrial metal have
risen more than sevenfold in the past
eight years as supplies lag the surging
economies.
Equinox, an Australian company
listed in Toronto and Sydney, owns
the Lumwana copper mine in the
rich Zambian copper belt and most of
the Jabal Sayid project in Saudi
Arabia.
Barrick’s bid represents an 8.7 per
cent premium over Equinox’s
Thursday closing price. The all-cash
bid is 16 per cent higher than the
£4bn offer that Minmetals presented
earlier this month. The proposal
underscored China’s growing promi-
nence in the global race for resources.
ANALYSIS l Barrick Gold 49.50
25 Apr
55.50 C$
54.50
53.50
52.50
18 Apr 21 Apr 25 Apr

US firms prepare for new

say-on-pay rules for executives
and AT&T are among those under-
▲

US ECONOMY
US FIRMS have already begun to make
provisions for tough new rules giving
shareholders more say in how much
top staff are paid.
A study by ClearBridge shows a sig-
nificant number of the biggest US
firms have already moved to cut the
basic pay and benefits packages of
their top staff.
Firms including General Electric
stood to have changed their pay and
tax structures to meet the demands of
the so-called “say-on-pay” legislation.
The new rules, which were brought
in as part of the Dodd-Frank financial
reforms, also demand greater trans-
parency over remuneration for top
executives.
Some firms have also begun to link
the pay of their chief executives more
closely with returns for investors.
CITYA.M. 26 APRIL 2011
London to get
wedding gift
worth £107m
▲
UK ECONOMY
BY STEVE DINNEEN
DETRACTORS say the Royal Wedding
could cost the UK economy up to
£30bn. But a new survey from PwC
claims that the nuptials will also have
an economic upside.
Visitors to the capital determined to
share in the carnival atmosphere will
be splashing out an estimated £107m
while they celebrate. Around 560,000
people will flock to London from other
parts of the UK to watch William and
Kate tie the knot on Friday.
Businesses remaining open in the
Westminster area could see the biggest
revenue boost, with over half a million
people expected to gather there. Bars,
hotels and transport companies servic-
ing London will also receive a welcome
upturn in business, as will major shop-
ping centres including Westfield and
Brent Cross.
Over 1m people will watch the event
News 5
Source: PwC
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on big screens around the country.
The small screen will also see a big
audience spike, with 20m people plan-
ning to huddle round the TV for the
event. The global forecast for the num-
ber of people watching when Kate says
“I do” is an astonishing 2bn.
Analysts at PwC say the figures bode
well for London’s performance during
the Olympic Games.
Mark Ambler, PwC economist, said:
“Our survey suggests that the wedding
will be a great economic boost for Spread betting is a leveraged
London’s economy and a good indica-
tor of the potential economic benefits
product and can result in losses
of the Olympic games when more that exceed your initial deposit
than ten times this number of visitors
is expected.”
But others are more gloomy. The
timing of the wedding, which falls
after a late Easter, gives people the
chance to bag 11 days off for just three
days of holiday. Economists say that if
everyone takes the full 11 days it will WorldSpreads Limited is authorised and regulated in the UK by
cost £30bn in lost productivity. the Financial Services Authority
 6 News
Nintendo will launch new Wii
to reverse slump in its profits
▲
TECHNOLOGY
BY HARRY BANKS
NINTENDO has said it will launch a
successor to its ageing Wii game con-
sole in 2012 as it struggles to win
back users from rivals Microsoft and
Sony and seeks to reverse a slump in
profits.
Nintendo said yesterday that it
expects profits to remain almost flat
in the current financial year, despite
the launch of its much-touted 3D-
capable handheld games device,
whose sales in Japan have been over-
shadowed by the devastating 11
March earthquake.
The maker of the DS handheld
game player, which is also facing
competition from smartphone and
tablet makers including Apple, said
it will demonstrate the Wii’s replace-
ment in Los Angeles on 7 June at the
E3 game show.
Yesterday, the company revealed
quarterly profit of just 12bn yen
(£88.63m), down from 59.9bn yen a
year earlier, as it slashed prices and
the strong yen hurt the value of its
sales abroad.
Having sold 86m units of the Wii
since its launch in 2006, sales last
business year slipped by a quarter to
15m.
Nintendo expects first half profit
for the current financial year to be
down more than 63 per cent on the
previous year, with a bounce back in
the second half.
Nintendo will launch a new version of the Wii in 2012
Toyota set to
lose top spot
after quake
▲
AUTOMOTIVE
BY HARRY BANKS
TOYOTA looks set to slip to number
three in the global carmaker produc-
tion rankings, behind General Motors
and Volkswagen, after the Japanese
earthquake and nuclear crisis slashed
output by almost two-thirds in March.
A shortage of parts in the wake of
the 11 March earthquake and tsuna-
mi has savaged Japan’s car supply
chain, while damage to a major
nuclear plant has disrupted power
supplies.
Investors expecting overseas rivals
to benefit from a prolonged slump in
Japanese output pushed up shares in
South Korea’s Hyundai Motors and
associate Kia Motors to record highs
yesterday.
“Hyundai and Kia will be the
biggest beneficiaries of the struggling
Japanese car industry,” said Suh Sung-
moon, an analyst at Korea Investment
& Securities in Seoul.
Domestic production at Toyota, the
world’s largest carmaker, fell 62.7 per
cent in March, while Nissan said its
corresponding figure fell 52.4 per
cent.
Bank of Japan governor hopes
for growth in the third quarter
▲
ECONOMICS
BANK of Japan Governor Masaaki
Shirakawa yesterday expressed hope
that the country’s economic growth
will turn positive in the third quarter
of this year as supply constraints ease.
Shirakawa also dismissed calls for
the central bank to underwrite govern-
ment bonds to finance reconstruction,
which has been called for by some
Japanese politicians.
Business and household sentiment
are deteriorating due to the earth-
quake, tsunami and nuclear crisis that
struck northeast Japan last month,
Shirakawa said, adding that power
CITYA.M. 26 APRIL 2011
Picture: REX
Toyota is almost certain to lose the
top producer ranking it has held since
2008 to General Motors this year and
could fall behind number three
Volkswagen.
Toyota, which sold 8.42m vehicles
last year versus GM’s 8.39m, is on
track to post sales of around 6.5m
units this year.
Meanwhile, Standard & Poor’s has
cut its outlook on the six major
Japanese carmakers and suppliers to
negative from stable.
“In our opinion, extended produc-
tion cuts may erode Japanese
automakers’ market shares and com-
petitive positions in the longer term,”
S&P said.
ANALYSIS l Toyota Motor Corp
4000 ¥
3750 3,275.000
25 Apr
3500
3250
Feb Mar Apr
shortages triggered by the devastating
earthquake and subsequent supply
constraints would ease after the sum-
mer.
“It would be tough for output to
rebound in one or two months,” as
was the case after the 1995 Kobe earth-
quake, Shirakawa said.
“But supply constraints will ease
over time and reconstruction demand
will certainly emerge,” he said. “We
need to monitor developments with-
out any preset ideas, particularly when
there is so much uncertainty.”
Shirakawa did not comment on
monetary policy or on Thursday’s eco-
nomic and price outlook report.
CITYA.M. 26 APRIL 2011
Profits surge
at Netflix but
stock slumps
▲
MEDIA
BY STEVE DINNEEN
MOVIE rental firm
announced a surge in profits and
Netflix
revenues yesterday but saw its stock
tumble after disappointing investors
with its second quarter outlook.
It added 3.3m new customers in
the quarter to overtake Comcast as
the largest paid video service in the
US with 23.6m subscribers. Year-on-
year its global subscriber base has
risen an astonishing 69 per cent.
First-quarter profits beat expecta-
tions, hitting $60.2m (£36m), up
from $32.3m a year ago. Revenues
rose 46 per cent to $719m, with ana-
lysts expecting $703.6m.
Gross margin for the quarter grew
from 37.8 per cent to 39 per cent.
However, Netflix said it is likely to
miss analyst forecasts for sent sec-
ond quarter. That outlook sent its
shares tumbling five per cent in
after hours trading.
To attract more customers, Netflix
has negotiated a glut of content
agreements. Recent additions to its
stable include a deal with Lionsgate
for Mad Men, a Fox deal for Glee, and
a two-year tie-up with CBS for shows
including Cheers and Frasier.
The firm also attracts record
rentals of hit movies including Oscar
winners Crash and The Departed
(right).
Netflix’s stock is up 43 per cent
this year and reached an all-time
high before the close of play in New
York yesterday.
ANALYSIS l Netflix
250
$ 251.67
25 Apr
230
200
170
31 Jan 18 Feb 10 Mar 30 Mar
News 7
Radioshack sees
dip in earnings
▲
RETAIL
QUARTERLY earnings at US electricals
retailer Radioshack fell on weakness
in its T-Mobile business and higher
costs, prompting the firm to cut its
profit outlook.
In the first quarter, it earned
$35.1m (£21.3m), down from $50.1m
a year earlier. Sales rose 2.1 per cent to
$1.06bn, missing analysts’ expecta-
tions of $1.07bn. RadioShack reduced
the top end of its 2011 profit outlook
to $1.80 a share from $1.90, while
keeping the low end at $1.60.
Kleenex maker
warns on costs
RETAIL
▲
KLEENEX tissue-maker Kimberly-
Clark saw its profits slide 8.9 per cent
in the first quarter as higer raw mate-
rial prices eroded its margins.
The firm saw its profits fall to
$350m (£212.5m) from $384m, miss-
ing analyst forecasts. Its revenues
climbed four per cent to $5.03bn,
beating forecasts of $4.98bn.
Chief executive Thomas Falk said:
“We continue to execute our global
business plan strategies in a difficult
environment. The rapid run-up in
The Departed, starring Leonardo DiCaprio and Matt Damon, was one of the most rented commodity costs has influenced our
19 Apr movies by users of Netflix near-term profitability.”
CITYA.M. 26 APRIL 2011 News 9

ANALYSIS l How will the government’s plans to limit

immigration affect the prospects for the
UK economic recovery?

5% Very helpful
9%
PoliticsHome.com 11% Fairly helpful

%
16%
No effect
In association with PoliticsHome.com Fairly damaging
32%
27% Very damaging
Apply to join today at www.cityam.com/panel
Don’t know

Coalition plans to reduce immigration will

ANALYSIS l How concerned are you that disagreements
within the coalition government will
destabilise the UK economy?
1%

hinder recovery, says our readers’ panel 7%

37%

%
Very concerned

POLITICS Fairly concerned

▲

BY DAVID CROW
GOVERNMENT plans to reduce
immigration will hinder Britain’s
economic recovery, according to
members of our Voice of the City
panel.
Forty-three per cent of panellists
said policies designed to reduce net
immigration from the hundreds of
thousands to the tens of thousands
The findings are in stark contrast ments would destabilise the UK ly recruited to represent
to general opinion polls, which economy, even as the Liberal a cross section of 54%
show huge support for the govern- Democrats and Tories tear strips off London’s financial and Not at all concerned
ment’s plan to cap net immigra- each other ahead of the AV referen- business community.
tion. Earlier this month, Ipsos Mori dum. Seven per cent said they were Members of the panel Don’t know
found that three quarters of Britons “very concerned” while 37 per cent that respond to at ANALYSIS l Do you think that Gordon Brown is a
believe that immigration is current- said they were “fairly concerned”. least 80 per suitable candidate to be the next head
ly a problem and just 15 per cent Meanwhile, over three quarters cent of surveys of the IMF?
oppose a cap, compared to more of panellists (78 per cent) said ex- between now
than half (57 per cent) who support Prime Minister Gordon Brown was and September
1%
7%
one. an unsuitable candidate to be the will be entered
into a prize Completely suitable
Earlier this month, coalition ten- next head of the IMF. Earlier this 11%

%
would be either “very damaging” or sions over immigration boiled over month, David Cameron courted draw to win a Fairly suitable
“fairly damaging” to the recovery, after business secretary Vince Cable controversy after he appeared to luxury week- 3%
against a quarter of panellists who said the Prime Minister had made dash the former Labour leader’s end in Paris. Neither suitable nor
said they would be either “very “very unwise” comments about hopes of leading the organisation Full T&Cs 15% unsuitable
helpful” or “fairly helpful”. immigration that “risked inflam- by signalling he would not back his available on 63% Fairly unsuitable
Twenty-seven per cent of panel- ing extremism”. candidacy. request. New
lists said the policy would have “no But over half of our panellists (54 • City A.M. and PoliticsHome inter- members can Completely unsuitable
effect” while five per cent said they per cent) said they were “not at all viewed 481 members of the Voice of apply to join at Don’t know
didn’t know. concerned” that coalition disagree- the City panel, which has been special- cityam.com/panel
 10 News
New counting
firm emerges
amid AV row
▲
POLITICS
BY RICHARD PARTINGTON
A SECOND vote-counting machine
boss, whose firm stands to gain from a
switch to the Alternative Vote, has
extolled the virtues of scrapping
Britain’s first past the post electoral
system.
Anne Marie-Slavin, chief executive
of Opt2Vote, a vote-counting firm that
has a contract for all of Scotland’s
council and by-elections, said: “The
introduction of electronic counting,
and possibly AV for parliamentary
elections, as part of the government’s
overall modernisation programme
should be encouraged.”
Her backing comes just days after
Nick Clegg accused his coalition allies
of lying about electronic counting. He
said claims that the introduction of AV
would require expensive automated
machines was “lies, misinformation
and deceit”.
Yet his broadside, seen as an attack
on Prime Minister David Cameron,
was questioned by detractors.
“This shows that the consensus
among those who run elections is
that the introduction of AV will mean
councils have to purchase expensive
vote counting machines,” a spokesper-
son for the No to AV campaign said.
“Here is a company that runs elec-
tions urging a yes vote for the poten-
tial commercial interests AV would
bring.”
It had already emerged that the
Electoral Reform Society, a major
backer of the “Yes to AV” campaign,
believed it could gain financially
under AV.
Several prominent City figures have
pledged thousands of pounds to the
“No” campaign in the run up to the 5
May referendum.
The campaign’s chairman, founder
of derivatives dealer CMC Markets
Peter Cruddas, has made a £400,000
donation, whilst Lord Sainsbury has
donated £100,000.
The heads of FTSE100 firms
Hargreaves Lansdown and Man Group,
Peter Hargreaves and Lord Fink, also
pledged significant sums.
Peter Hargreaves (top left), Lord Fink (top
right), Peter Cruddas (bottom left) and
Lord Sainsbury are backers of the “No to
AV” campaign. Pictures: REX, GETTY
CITYA.M. 26 APRIL 2011
Corporation tax
cut would boost
wages: report
▲
POLITICS
BY ED KEMP
BRITISH workers would get an aver-
age £552 pay rise if corporation tax
was cut by five per cent, a new report
has claimed.
Reducing the tax on British firms –
currently 27.9 per cent – and bringing
it closer to the OECD average of 18.6
per cent would enable companies to
increase wages, according to a paper
by the TaxPayers’ Alliance.
A one percentage point rise in cor-
porate tax leads to a fall in average
wages of 0.52 percentage points, the
report says. Based on that figure, a tax
cut of five per cent would boost an
average worker’s salary of £21,221 by
£552 to £21,773.
The report suggests that higher lev-
els of business tax are always passed
on in higher prices to consumers, and
lower wages to workers.
Corporation tax is due to be cut to
23 per cent over the current
Parliament following measures set
out by chancellor George Osborne in
last month’s Budget.
Last week John Cridland, the head
of the Confederation of British
Industry, called for the tax on profits
to be cut to 18 per cent to boost the
UK’s global competitiveness. He also
demanded the scrapping of the 50
per cent rate of personal income tax
on earnings over £150,000.
CITYA.M. 26 APRIL 2011 News 11

Sberbank heads to
HSBC, run by chief
executive Stuart
Gulliver, is shutting
its retail operations
in Russia

Picture: REUTERS

US to find investors
The state-owned lender, which has a

▲
BANKING
BY RICHARD PARTINGTON
THE CHIEF executive of Russia’s
largest lender, Sberbank, is to tour the
United States this week to court poten-
tial investors ahead of a privatisation
expected to start later this year.
Herman Gref and other top man-
agers are visiting the US this week to
meet the largest fund managers and
institutions.
market capitalisation of around
$83bn (£50bn), will begin to sell down
the government’s stake later this year.
Moscow plans to cut its stakes in
major state-owned firms, including
banks, in a 1 trillion rouble (£21bn)
privatisation drive over three years.
Gref said: “First of all we are inter-
ested in potential investors for our
shares. We can make a profit, we are
exceeding analysts’ expectations.”

HSBC axes its

Russian retail
banking unit
Moscow and one affiliate branch in St
▲

BANKING
BY RICHARD PARTINGTON
HSBC has become the latest interna-
tional lender to pull the plug on its
retail operations in Russia, as foreign
banks struggle to crack the domi-
nance of the country’s state-backed
giants.
The London-based bank’s exit fol-
lows that of Barclays, which quit its
Russian retail banking operation last
month.
Barclay’s boss Bob Diamond said at
the time his bank was “unable to com-
pete” in Russia.
HSBC said it would close its retail
business and reduce its private bank-
ing presence to a representative office,
following a strategic review of its oper-
ations in the country.
Russian chief executive Huseyin
Ozkaya said: “It’s clear that the
strongest opportunity for HSBC in
Russia lies in servicing corporate and
institutional clients.
He added: “This enables HSBC to bet-
ter support clients who are trading
and investing internationally and
require access to our extensive global
network.”
The bank had four branches in
Petersburg, and will now focus on its
investment banking operations in the
country.
State-owned banks control around
65 per cent of Russia’s top-100 banks’
assets, according to estimates, with
Sberbank accounting for almost 50 per
cent of deposits in the banking system.
Foreign banks operating in the
country have struggled to emulate
Citigroup, whose heavily promoted
Citigold service has outperformed
competitors.
Citi gained a foothold in the Russian
market due to its early entry, having
first established a Moscow presence in
1993. It now has more than 55 retail
branches in about a dozen cities.
ANALYSIS l HSBC
740 p
659.60
700 21 Apr
660
620
31 Jan 18 Feb 10 Mar 30 Mar 19 Apr

INTERNATIONAL BANKS IN RUSSIA

● The latest international bank to quit its
HSBC Russian retail operations, with a shift away
from private banking to corporate work.
● Pulled the plug on its retail operations ear-
Barclays lier this year, having struggled since it entered
the market just before the financial crash.
● Bought Moscow-based lender Rosbank in
Société Générale 2008. Has 16,000 employees in Russia - more
than in any country outside of France.
● Perhaps the only international player to
Citigroup have cracked Russia. It has become one of the
country’s biggest banks since its 1993 entry.
● The Italian lender is doing well in Russia.
UniCredit It bought International Moscow Bank in
2007 and now has more than 100 branches.
● Sold its mortgage unit last year to Russian
Morgan Stanley Orient Express bank after the financial crash
hit the country’s construction sector hard.
● Exited Russia in December, also selling to
Santander Orient Express. The Spanish bank had also
faced tough competition from local lenders.
 The Capitalist
12
BANK EXODUS AS TRADERS JUMP
SHIP FOR HEDGE FUND MILLIONS
THE BRAIN drain from the City’s lead-
ing banks has started, as The Capitalist
can reveal traders at JP Morgan Chase,
RBS, UBS and Lloyds have gone
behind bosses’ backs to apply to a
hedge fund that promises to make
them millionaires within a year.
The deserting bankers are on the
shortlist for Mike Baghdady’s Trading
Places-style contest to find the next-
generation of hedge fund stars – as
Hold it there: Can JP Morgan boss Jamie Dimon stop the talent exodus? Pictures: REX, GETTY first reported in this column on 14
EDITED BY CITYA.M. 26 APRIL 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
April – where the 20 winners will be
given a full-time job at Baghdady’s
firm Training Traders.
If the traders are successful, they
could manage £10m of funds within
12 months, taking up to 40 per cent of
the profits. You do the maths.
The lure of the cash is so strong
that a TV producer is willing to drop a
ten-year career at the BBC, and a
restaurateur is drafting his P45 for his
job with one of the UK’s top chefs.
The final 40 will now undergo a
series of psychological tests set by
Edna Agbartha, who cut her teeth
doing psychological profiles for RBS,
to check whether they are able to
cope with the financial pressure.
Baghdady is happy to promote the Hastings: Nightmare snakes and ladders
“great story” of the former pit trader
hoping to make a comeback after his online trading experiment. In his
falling on taxi-driving hard times, heart, however, he knows that innu-
but refuses to reveal the full names merates like himself are “doomed to
of his would-be millionaires. remain prisoners of the banks and
Not because he was cycling along financial advisers, who will continue
Bond Street on a Boris Bike as he systematically to skin us alive”.
spoke to The Capitalist, you under-
stand, but because he doesn’t want to
attract the attentions of “every finan- FOOT IN THE DOOR
cial headhunter in town”. MEANWHILE, The Capitalist is pleased
Not to mention the wrath of JP to have helped Ratidzo Chinyuku ful-
Morgan, RBS, Lloyds and UBS bosses fil her ambition of becoming a
when they discover their star employ- lawyer, after City A.M.’s 12 April story
ees are heading for the door… on Martin Winter’s work in her home
country of Zimbabwe inspired her to
write to the Taylor Wessing partner
BATTLE OF HASTINGS asking to be considered for a work
THERE was only one possible out- placement.
come when Max Hastings opened Impressed by the year-ten student’s
an online NatWest trading resourcefulness – “how many 17 year-
account: hysterical laughter from olds do you know who read financial
his banker friends. newspapers?” – Winter has offered
As part of a DIY investment mas- Chinyuku an informal work place-
terclass for Prospect magazine, the ment shadowing at his offices for two
former Daily Telegraph and weeks from 25 July this summer.
Evening Standard editor set about
mimicking the shareholdings of an
experienced private investor, but
soon became embroiled in a “night-
mare game of snakes and ladders”,
calling the helpline twice during
each transaction.
Hastings intends to persevere with
BILL OF THE WEEK
BABBO on Albemarle Street, voted Best
New Italian Restaurant 2011 by Zagat,
was the venue for a “celebratory” lunch for
five City gourmands who took full advan-
tage of one of the finest Italian wine lists
in London. So the regional dishes including
Beef Florenti, Veal Milanese and chef
Douglas Santi’s lasagne were all well and
good, but the high spots were a £550 bot-
tle of Sassicaia from 1997 and a £1,400
bottle of Tuscan Masseto from 1998.
Clearly on a roll, the diners decided not to
bother with coffee, instead rounding off
the £2,800 blowout with a bottle of
Grappa. Not bad for a Thursday – even by
Mayfair standards.
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 14 News CITYA.M. 26 APRIL 2011

Economic lessons from the last Royal Wedding

nomic output suffers further as a
result?
Last week I was temporarily a
staunch Republican as I looked at how
my net pay is going one way (down)
and my daily costs are going the other
way (up) as fiscal tightening and glob-
al inflation combine to hit my person-
CNBC COMMENT al balance sheet yet again. Still, we’ll
be popping open the champers on
STEVE SEDGWICK Friday to celebrate the happy occa-
sion, even if we’ll be passing off
were tying the knot. The UK was again
in a tough financial pickle; we had a
Conservative government trying to
sort out the economic mess; and, as
now, we had inflation problems.
That said, inflation is not exactly
runaway just yet. The Bank of England
may be relaxed about the retail price
index rising by 5.3 per cent and the
favoured consumer price index (CPI)
at four per cent, double the target.
However, compared with 1981,
autumn of 1981. That kind of rate
today would make my mortgage track-
er look a little nasty.
Another wretched link to 1981
came a couple of weeks ago when we
found out that last year we suffered
the first drop in real incomes since
that year.
In 1981 Geoffrey Howe was doing
pretty much what George Osborne is
doing now: polarising the economic
and academic establishment with
short to medium term. Back then
unemployment hit 2.5m in 1981.
Thirty years ago will also be remem-
bered for riots in Brixton and Toxteth;
Greenham Common peace campaign-
ers; and the firebrand Ken Livingstone
in charge of the GLC.
Perhaps one of the most polarising
figures of 1981, after Lady Thatcher
herself, was Norman Tebbit.
I’ll leave you with his most memo-
rable quote of the year. Maybe it is just

S
O, it’s Royal Wedding week –
how exciting! I have decided to
become a Royalist this week
because we all get an extra day
of holiday to celebrate Kate and Wills’
big day on Friday. Who cares if UK eco-
sparkling wine as the real stuff.
How different or similar were
things thirty years ago when we last
had a big Royal Wedding?
In many ways, it was the same old
story in 1981, as Charles and Diana
when UK CPI was standing at 11.9 per
cent having hit 18 per cent in 1980,
things don’t look quite so bad.
Incidentally, you may be interested to
know that the Bank of England inter-
est rate stood at 15 per cent by the
harsh medicine to correct an econo-
my which had become dangerously
unbalanced. The debate still goes on
after thirty years as to whether his
Budgets in the early 1980s made the
unemployment problem worse in the
as apt today: “I grew up in the thirties
with an unemployed father. He didn’t
riot. He got on his bike and looked for
work and he kept looking until he
found it.”
Steve Sedgwick is an anchor on CNBC

NEWS | IN BRIEF

Make a break for

Treasury near to deal with Swiss Delay to Shell flared gas deal
The Treasury is close to agreeing a deal Legal hurdles have delayed Iraq's $12bn
with the Swiss authorities to tax assets (£7.3bn) deal with Royal Dutch Shell and
that up to 15,000 Britons have banked in Mitsubishi to capture flared gas, but
secret accounts there. The deal is set to agreement on a final draft contract may

it this summer!
raise between £3bn and £6bn, but allow
the Swiss to maintain clients’ privacy.
Swiss banks would collect the money,
which would then be handed over by the
Swiss authorities. The tax is likely to be
25-35 per cent of Swiss account savings.
be only a few weeks away, a senior Iraqi
oil official said yesterday. “I expect by
the end of next week we will be very
close to settling these issues and reach-
ing agreement on a final draft deal,” said
deputy oil minister Ahmed al-Shamma.

Travel from 1 May to 30 September 2011

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CITYA.M. 26 APRIL 2011 Consumer 15

Mamut set to table

Waterstone’s bid
RETAIL under pressure to raise money chain’s founder, Tim Waterstone,
▲

BY RICHARD PARTINGTON
RUSSIAN oligarch Alexander
Mamut will make a formal bid for
struggling high street book chain
Waterstone’s as early as this week.
The Moscow-based billionaire
will mount a cut-price £35m bid
for the retailer, which is being
sold off by its embattled owner
HMV.
The bookseller had been valued
at between £50m and £75m, yet
Mamut could take advantage of
HMV’s heavy debt burden to
encourage a discount sale.
HMV has issued three profit
warnings so far this year and is
amid fears it could break its bank- over a joint bid. It is not clear
ing covenants. whether Waterstone is involved in
It recently bought more time the bid at this stage, although the
after it agreed with lenders an pair have worked together before
extension of its measurement and are known to be good friends.
period for its covenant test from
the end of April to 2 July. ANALYSIS l HMV
The move could give manage- 26 p
ment the breathing space to
22
10.50
weigh Mamut’s bid against poten- 21 Apr Sculptures,
p , rare graphics,
g p ,
tial rivals, although chief execu-
tive Simon Fox will be under 18 original
g colllages
g
pressure from shareholders to
accept. 14
Mamut has been carrying out
due diligence on Waterstone’s 10
over recent weeks.
31 Jan 18 Feb 10 Mar 30 Mar 19 Apr
He had been linked with the

Oligarch’s friendship with chain founder

RETAIL Moor House Building
▲

BY RICHARD PARTINGTON nerstone of a group of investors in

BILLIONAIRE bibliophile Alexander
Mamut has a long-standing friend-
ship with Tim Waterstone, the
founder of the book chain that bears
his name.
Although it is not yet clear
whether they will mount a
joint bid for the retailer,
the pair have joined
forces behind a book-
seller in the past.
The oligarch and
the Englishman
TIM WATERSTONE formed the cor-
Russian bookstore chain Bookberry, Opening April 1st
before selling out to another
Russian billionaire, Oleg
Deripaska, in 2008. 120 London Wall, City of London, EC2Y 5ET
Both Waterstone and Mamut
share a love for literature and have Monday - Friday 10:00 am - 6:00 pm
been friends since the venture.
The two are said to have been build- Saturday 11:00 am - 5:00 pm
ing a management team to run
the chain, with plans to take it
back to its roots as a stock hold- T. +44 (0) 778 907 6340 | T. +44 (0) 207 614 0600
ing business with more day-to- info@modernmastersgallery.com
day management
input from its www.modernmastersgallery.com
staff. ALEXANDER MAMUT

All Saints edges NEWS | IN BRIEF

Good Friday great for retailers

closer to sale amid

The New West End Company, which
represents 600 retailers on Bond Street,
Oxford Street and Regent Street,
reported increased sales figures over
Easter, as shoppers took advantage of

administration fear
warm weather and extra holiday time. It
said 2m shoppers flocked to the area
during the first three days of the Easter
weekend – up 4.1 per cent on Easter
weekend last year. On Friday alone,
800,000 went shopping in the area,
causing retailers to dub the day “Great
Friday”. West End hotels reported a
RETAIL over the future of the business. surge in family room bookings too, with
▲

BY RICHARD PARTINGTON
HIGH street fashion retailer All
Saints is set to complete a sale to US
private equity house Goode Partners
by the end of this week, despite fears
its creditors could put it into admin-
istration.
Sources close to the process said
the US firm was “leading the deal” to
buy all of the ordinary shares in the
company for more than £100m, as
part of a consortium of buyers.
But there are suggestions the
retailer’s main lender, Lloyds
Banking Group, has threatened chief
executive Stephen Craig with the liq-
uidation of his firm should the buy-
out deal fail.
The bank, which provides All
Saints with a £28.5m loan facility,
was also said to have put KPMG on
standby to initiate administration
proceedings should talks fail.
Talks are set to continue today
between management and bankers
Craig told City A.M. last night there
had been no threat of liquidation,
adding that Lloyds had been “fantas-
tic” throughout the sale process.
He said: “It’s been a case study in
relationship banking.
“Where we’re at in the transaction
is that I believe it will complete this
week. If it doesn’t complete this week
then, in my view, it’s only because of
the Royal Wedding.”
All Saints was put on the block
after majority shareholders
Kaupthing and Glitnir, the Icelandic
banks that collapsed during the
financial crisis, were forced to sell
their assets by administrators.
Retail mogul Kevin Stanford, who
bought the fashion brand in 2003,
also holds a “Z-share” in the business
– a position that could net him 50
per cent of the value of the transac-
tion.
All Saints has more than 60 stores
and almost 50 concessions across the
UK, Europe, America and Russia.
Fashion retailer All Saints is set to complete a sale this week
both British visitors and out-of-towners
taking advantage of the combined 11-
day break bookended by Bank holidays.
Yahoo buys TV sharing company
Yahoo said yesterday it has bought
IntoNow, a start-up that enables users
to identify and share television pro-
grammes with their friends, in its con-
tinuing drive to boost its social media
credentials. Financial terms were not
disclosed. IntoNow, which is led by
Adam Cahan, a former executive with
Google and Viacom’s MTV, works with
an app on a user's phone which scans
the audio waves from TV sets and iden-
tifies the programmes being aired.
Ford idles plants over shortages
Ford will idle plants in Taiwan, China and
South Africa beginning this week due to
the shortage of parts from Japan after
the 11 March earthquake, tsunami and
nuclear crisis, the company said yester-
day. All three plants were scheduled to
Picture: GETTY be shut at a later date.
 16 News CITYA.M. 26 APRIL 2011

Why giving listed status to Broadgate is wrong

a new European headquarters for
UBS.
The fact that UBS has taken a long-
term decision to be based in the City
for the foreseeable future is an
encouraging one.
However, this project has not been
without controversy and the whole of
CITY COMMENT Broadgate is reportedly being assessed
for “listed building” designation. I
STUART FRASER believe this would be a mistake.
Whilst always mindful of the need
their business requirements – this is
vital to continued competitiveness.
By approving the scheme at 5
Broadgate, the City of London has pro-
vided a fitting home for one of
Europe’s largest banks and has
demonstrated its commitment to pro-
viding a business environment that
can continue to attract the world’s
leading firms for many years to come.
These plans aptly demonstrate the
adaptability of the original Broadgate
City community.
The City of London works hard to
ensure that new developments repre-
sent the best of contemporary archi-
tecture while respecting our
cherished network of alleys and open
spaces – 5 Broadgate succeeds in this.
Ken Shuttleworth – the architect
most famous for designing the
Gherkin – has claimed that low-rise
projects are the way forward and that
“the age of the glass tower is dead”.
Angel Court last week – I would be sur-
prised if we have seen the last applica-
tion for a tall City building.
Different buildings – be they sky-
scrapers or groundscrapers or any-
thing in between – offer different
advantages to their occupiers; devel-
opers, architects and financiers natu-
rally produce schemes that reflect
market conditions and the business
needs of potential tenants.
The fact that all of the City’s tall

L
AST week the City of London
Corporation’s Planning and
Transportation Committee
approved plans for a 13 storey
office block at 5 Broadgate to provide
to protect our heritage, the City of
London also works closely with cur-
rent occupiers and potential future
occupiers to ensure the office space
available in the Square Mile meets
development concept and the vision
of its architect, Peter Foggo.
Broadgate is defined by the quality
of its open spaces, which have been
critical to its lasting appeal among the
While current trends suggest a
greater enthusiasm for lower develop-
ments or for the retrofitting of exist-
ing buildings – such as the proposal
granted planning permission at 1
buildings are now fully funded and
under construction shows there is still
an appetite for such projects.
Stuart Fraser is policy chairman at the City
of London Corporation.

“It’s a privilege to be nominated by a

range of other asset managers and
EU tells UK to
professionals in the city”
Richard Swann, Inflexion (Alternative Manager of the Year) relax liquids
on planes ban
ried that anything other than a simul-
▲

AVIATION
taneous lifting of the ban will cause
BY ED KEMP
delays when passengers travel from a
BRITISH airports face disastrous conse- country that allows them to take liq-
quences if they fail to agree to the lift- uids on board to one that doesn’t.
ing of a ban on carrying liquids onto The UK’s move means that travellers
aeroplanes, the EU has warned. connecting at Heathrow will have liq-
The warning comes after Philip uid duty free purchases confiscated,
Hammond (pictured), the transport while those passing through other EU
secretary, refused to go ahead with the jurisdictions will not.
first phase of relaxing liquids restric- The rules were introduced in
tions, which is due this week. Europe in August 2006 after UK police
From 29 April, passengers on uncovered a terrorist plot to use
long-haul flights from outside bombs made from liquid explosives
the EU would have been able mixed during a flight.
to take duty-free liquids as The regulations prevent passen-
hand luggage on connecting gers carrying fluids onto planes
flights at UK airports. But unless they are in individual con-
Hammond has told airport own- tainers of no more than
ers that restrictions will not 100ml. Over 2,000 tonnes
be lifted, citing ongoing of liquids are confiscat-
security concerns. ed at Heathrow alone
Siim Kallas, the EU trans- each year.
port commissioner, said all Although scanning
What will you say? countries must meet the
agreed April 2013 deadline
technology for suspi-
cious liquids is not
for lifting the ban in full, yet in place, the
warning: “If some countries Department for
Enter the City A.M. Awards 2011 and you could be lift the ban and some do not Transport said it still
recognised as one of the City’s great personalities it will be disastrous.” intended to lift the
or companies of the year. Airport operators are wor- restrictions by 2013.

Visit our website to see how you can enter: TIME LINE | HAND LUGGAGE SECURITY
www.CityAMAwards.com
or for more information, please contact Jo Pead: 9 August 2006
020 8267 4043 / jo.pead@cityamawards.com A terrorist plot to detonate liquid explosives
on board several flights to North America is
disrupted when UK police officers arrest 21
suspects.
launches an attack on US-led security regula-
tions, saying: “There’s quite a number of ele-
ments of the security programme which are
completely redundant and they should be
sorted out.”

10 August 2006 December 2010

headline sponsor champagne reception sponsor
official venue partner
An overnight emergency ban on liquids in
hand luggage is imposed by then Home
Secretary John Reid. The ban is relaxed over
subsequent weeks to allow passengers to
carry fluids, but only in individual containers
of 100ml or less.
sponsors October 2009
The EU admits that progress towards devel-
oping scanning technology capable of
detecting dangerous fluids is “much slower
than anticipated”. It is forced to push back
its initial target of April 2010.
October 2010
British Airways chairman Martin Broughton
Transport secretary Philip Hammond tells a
Transport Select Committee: “In some cases
more searches than are necessary are being
carried out. Different approaches using tech-
nology could eliminate risk,”he said, adding:
“I am not suggesting we relax the standards
we require, I am suggesting more flexibility.”
12 April 2011
Hammond tells airport owners the planned
first phase of the lifting of liquids restrictions
across the EU will no longer go ahead in the
UK due to security concerns. He said he was
still committed to the complete lifting of the
ban by April 2013 alongside improvements
to screening technology.
CITYA.M. 26 APRIL 2011
NYSE targets higher savings
FINANCIAL SERVICES
▲
BY HARRY BANKS
NYSE Euronext sees cost savings in its
$9.8bn (£5.9bn) deal with Deutsche
Boerse at closer to €400m (£354m), up
by about a third from its initial esti-
mate, according to a spokesman.
NYSE chief executive Duncan
Niederauer also sees the biggest NYSE
and Deutsche Boerse customers saving
at least $3bn from the combination of
their European derivatives platforms,
according to spokesman Richard
Adamonis.
Standard Life
results aim to
justify outlay
INSURANCE
▲
BY ELIZABETH FOURNIER
STANDARD Life’s investment strategy
will be under scrutiny on Thursday
when it posts first quarter results,
with analysts expecting long-term sav-
ings net flows to increase by 18 per
cent.
Shares in the Edinburgh-based life
insurer fell more than 18 per cent at
the end of March following full-year
results that highlighted its higher
investment spending.
But its UK corporate cash flow is
expected to jump 10 per cent to £854m
from £776m for the three months to
March 2011. However, net cash flows
from self-invested personal pensions
are likely to be down, having benefited
last year from proposals to change the
minimum age at which pensions can
be accessed.
The Department for Work and
Pensions last week ruled out allowing
the early access to pension savings, say-
ing there was no evidence it would
encourage more people to start saving.
The new savings estimate, along
with a €100m in benefits coming from
cross-selling and distribution opportu-
nities, would bring the total savings
and benefits from the deal to about
$725m, closer to the estimates from a
competing takeover offer.
Nasdaq OMX Group and
IntercontinentalExchange have
launched a rival $11.2bn takeover bid
for NYSE Euronext. That deal promises
net savings and benefits, or synergies,
of $740m.
Last week, NYSE’s board rejected the
Nasdaq/ICE bid for the second time in
Chief executive David Nish, who was
promoted from finance director at the
firm in January 2010, was also award-
ed a 66 per cent pay rise earlier this
month, based on strict targets that
mean he will have to deliver an operat-
ing profit of £800m by 2013. Current
projections for 2013 profits stand at
£556m.
During the reporting period,
Standard Life also completed its acqui-
sition of financial software company
Focus Solutions for £42m, in a move
designed to boost its customer services
and improve product ranges.
ANALYSIS l Standard Life
250
p
212.40
230 21 Apr
210
190
31 Jan 18 Feb 10 Mar 30 Mar
11 days.
All four exchanges involved in the
increasingly bitter takeover battle are
trying to persuade NYSE shareholders
to back their deal.
Niederauer’s comments come
ahead of a closely watched NYSE share-
holder meeting on 28 April for their
annual vote on the companys direc-
tors.
Analysts have said that vote could be
an early sign of how shareholders feel
about the NYSE board’s decision to
back the Deutsche Boerse over the
rival, higher bid.
David Nish has increased investment following the financial crisis
Insurer will have to prove investment
will not erode the stock’s meaty yield
ALL eyes will be on Standard Life’s
ability to generate significant
amounts of cash when the insurer
reports first quarter results this
Thursday.
At the end of March, shares in the
firm lost more than 18 per cent after
operating capital and cash genera-
tion from continuing operations was
23 per cent lower at £287m.
Cash generation was hit by a
triple whammy of higher reserve
releases; increased investment
(which many investors fear is run-
ning at levels that are too high);
19 Apr
AXA Real Estate raises
€1.26bn from investors
▲
FUNDS
AXA Real Estate Investment Managers
raised €1.26bn (£1.1bn) in the first
quarter of 2011, with €800m raised as
segregated accounts to reflect an
ongoing demand for diversified man-
dates.
Axa Real Estate, the largest real
estate manager in Europe with
€39.9bn in assets under manage-
ment, also raised €460m for two of its
and a failure to repeat 2009’s stellar
back book management results.
The problem is investors look to
Standard Life for its meaty yield of
over five per cent, which will be
jeopardised unless the firm can
run enough cash off of its opera-
tion. Last year, the 13p-a-share was
only just covered. Shareholders will
want reassurance that it is safe in
the long run.
BOTTOMLINE
Analysis by Katie Hope
News 17
pan-European institutional invest-
ment vehicles, and for a debt fund it
launched in January this year.
Kiran Patel, global head of business
development, distribution, research
and strategy said: “The fact that we
have seen such strong interest from
investors in both our debt and devel-
opment funds in particular, reflects
the increasing appetite since the start
of this year for funds with strategies
across the entire risk spectrum.”
Overseas focus
behind record
results for SLR
▲
PRIVATE EQUITY
ENVIRONMENTAL consultant SLR
has reported record full-year
results, posting a 24 per cent rise in
profit despite a contraction of its
core UK market.
The company, which is backed by
private equity firm 3i, has spent the
past year expanding into resource-
driven economies through targeted
acquisitions in Alaska, Australia
and South Africa, to offset reduced
growth in its UK and Ireland opera-
tions.
Earnings before tax at the group
jumped 67 per cent to £7.7m, with
profits climbing to £67.3m from
£54.4m in 2009. More than 60 per
cent of group revenues earned out-
side of the UK.
Chief executive David Richards
said that the company was now well
poised to benefit from a recovery in
the industrial sector across the
countries that it serves. “We are
delighted to announce record
results for the Group, particularly
as these have been achieved against
a backdrop of flat or contracting
markets in Europe,” he said.
The company also announced yes-
terday that it had paid £7m for
Metago, a South African environ-
mental consultancy focused on sub-
Saharan Africa and Australia.

 

 
    

  


 
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 18 News CITYA.M. 26 APRIL 2011

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Gap
The US retailer has announced that it will
combine its international operations into one
London-based division, to be led by Stephen
Sunnucks, the new president, international of
Gap Inc. Since joining the company five years
ago, Sunnucks has guided the growth of Gap
and Banana Republic in Europe. Gap has also
appointed John Ermatinger, currently presi-
dent of Gap Inc’s Asia Pacific region, to a new
role establishing Old Navy International.
Commerzbank Markets has hired Andrew Readinger
Commerzbank Corporates and as global head of financial institution
sales, based in London, and promoted
Thomas Deppe to global head of cor-
porate sales, based in Frankfurt.
Ashcourt Rowan
The wealth management firm has
appointed Steve Daykin and Chris
Johnson as regional managers. Both
were formerly area sales managers
at Co-Operative Bank Independent
Financial Advisers until its acquisi-
tion by Ashcourt Rowan last year.
Stadia Trustees
The SIPP and alternative investment
specialist has appointed Jason
Burman as head of SIPP operations.
Burman joins from Suffolk Life, where
he was head of client reporting.
KPMG
Mike Linter, who has been a partner
at KPMG since 2000, has been
appointed as national head of the
People Services Tax division. In addi-
tion, Marc Burrows, tax partner at
KPMG in Switzerland, joins the UK
firm to run the International
Executive Services practice; Angus
Menzies joins as a director from
McGrigors to lead a new employ-
ment law team; and Chris Hogan
joins from KPMG in the US as a
director in the International
Executive Services practice.
Panmure Gordon
The stockbroker has appointed Philip
Tansey to the board as chief financial
officer and chief operating officer,
effective from 24 May. Tansey joins
from BCG Partners.
F&C Asset Management
The investment management group
has appointed Nabil Owadally as a
derivatives fund manager. Owadally
joins from Towers Watson.

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

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS l Rushydrow 5.22 ANALYSIS l Reckitt Benckiser 3,290.00 ANALYSIS l Shire Plc
25 Apr 21 Apr
5.25 $ p 1,900 p 1,866.00
3,500
5.20 21 Apr
5.15
5.10 3,300 1,800
5.05
5.00
4.95 3,100 1,700

4.90

2,900 1,600
15 Apr 18 Apr 19 Apr 20 Apr 21 Apr 31 Jan 18 Feb 10 Mar 30 Mar 19 Apr 31 Jan 18 Feb 10 Mar 30 Mar 19 Apr

RUSHYDRO RECKITT BENCKISER SHIRE PHARMACEUTICALS

Goldman Sachs has upgraded the hydroelectricity company to “buy”, seeing
its underperformance in the year to date as an opportunity to invest. The bro-
ker thinks the market has overreacted to the news flow on regulatory pres-
sure on electricity tariffs and the risks associated with M&A activity, and
expects an 18 per cent increase in earnings before tax in 2011 compared to
2010. Its 12-month price target increases 24 per cent to $7.80 (£4.73).
Nomura rates the consumer goods giant “buy” with a target price of 3800p
following its first quarter results last week, which saw core sales growth
broadly in line with expectations and core earnings before tax slightly ahead
of expectations. Most importantly, the brokers sees the company’s health and
personal care brands having returned to good growth and developing market
margins back in positive trend, having caused concern last year.
Credit Suisse rates the pharma giant as “overweight” with a target price of
1900p ahead of first quarter results due out this Thursday. The broker
expects an unusually strong performance from key product Adderall XR, driv-
en by a sharp increase in volumes over the quarter. Attention deficit hyperac-
tivity disorder (ADHD) treatment Vyvanse should also benefit with an
increase of 16 per cent year on year, as ADHD drugs continue to outperform.

US stocks fall over fears of commodity price rises

one of the busiest weeks of earnings, 0.16 per cent, to 1,335.25. But the ANALYSIS l Dow Jones Industrial Average 12,479.88
THENEW YORK with 180 S&P 500 companies set to
report this week, including other
major consumer names like Procter &
Nasdaq Composite Index gained 5.72
points, or 0.20 per cent, to close at
2,825.88.
12,600 25 Apr

REPORT Gamble and Colgate-Palmolive.

“That is going to be the next thing
that happens – the forward guidance
Johnson Controls fell 2.8 per cent
to $39.60 after the company, one of
the world’s largest auto suppliers,
12,200

is going to start to become impacted said its fiscal third-quarter results

11,800

I
N the lightest volume session of
the year, US stocks fell yesterday
after a lowered outlook from
Kimberly-Clark increased con-
cerns about higher commodity costs
squeezing profits in coming quarters.
About 5.4bn shares traded on the
New York Stock Exchange, the
American Stock Exchange and
Nasdaq, below the daily average of
7.74bn.
Kimberly-Clark fell 2.7 per cent to
$64.24 after it cut the low end of its
full-year outlook because the costs of
pulp and other goods rose more than
twice as much as it had expected.
The threat of rising commodity
costs will remain in the spotlight for
because of higher prices,” said Ken would be hit by a drop in car produc-
Polcari, managing director of ICAP tion following Japan’s massive earth-
Equities in New York. quake last month. Japan’s earthquake
“This non-existent inflation that has disrupted the supply of auto parts 11,400
31 Jan 18 Feb 10 Mar 30 Mar 19 Apr
(the Federal Reserve) keeps talking and forced auto companies to idle
about is elusive, because there clearly plants. ANALYSIS l Nasdaq Index
is much more inflation than they Through Monday, 75 per cent of
2,850
2825.88
care to admit at the moment.” the 151 companies in the S&P 500 25 Apr
Kimberly-Clark, maker of Kleenex that have reported results have beat-
tissue and Huggies disposable dia- en analysts’ expectations. That is just
pers, is among companies highly vul- above the average over the past four
2,750
nerable to rising commodity costs quarters but well above the average of
because its products contain oil-based 62 percent since 1994, according to
materials and paper. Thomson Reuters data.
The Dow Jones industrial average The Nasdaq edged higher, boosted 2,650
dropped 26.11 points, or 0.21 per cent, by SanDisk, up 1.6 per cent at $49.78
to end at 12,479.88. The Standard & after raising its 2011 margin outlook
Poor’s 500 Index shed 2.13 points, or late on Thursday. 31 Jan 18 Feb 11 Mar 31 Mar 20 Apr

WALL STREET WEEK AHEAD

L
ARGE blue chips, including some
consumer-oriented companies,
will have to show they can count-
er sluggish developed economies
by leveraging growth in emerging
markets and technology – if Wall
Street is to maintain earnings
momentum this week.
Companies like Microsoft, PepsiCo,
and Coca-Cola, unloved on Wall
Street, could turn out to be good buys
if they can show they justify higher
valuations than investors are now
willing to give them.
“If you see these Cokes and Pepsis
and these kinds of multinational con-
sumer names post good results, I
think it is going to give the percep-
tion that the equity market can over-
come a lot of these domestic issues,”
said Nick Kalivas, an analyst at MF
Global in Chicago.
Before the recession, the consumer
and financial sectors benefited from
huge credit expansion. Not so now.
Growth is now concentrated in
industrial, materials and energy
stocks that benefit from strong
demand in emerging markets, as well
as a technology sector boosted by
robust demand from businesses.
Average earnings growth across
those sectors amounts to almost 33
per cent in the first quarter over a
year ago, according to Thomson
Reuters data. That is more than dou-
ble the estimated growth for the S&P
500 and towers over the 5 per cent
growth in a financial sector burdened
by a weak housing market.
Investors will also want to see at
least stable performance in developed
markets as they gear up this week for
a press conference by US Federal
Reserve Chairman Ben Bernanke.
 Wealth Management
How UK CFD traders can
gain from a falling dollar
Craig Drake looks
at how to cash in
on the weak buck
T
HIS year’s financial headlines
have been dominated by uncer-
tainty around the world. The tur-
moil in the Middle East and
north Africa has led to long-term sup-
ply worries in this oil rich area, and the
continuing fears over the Eurozone sov-
ereign debt crisis have had investors
seeking out safe havens. Combined
with the weak greenback, these global
events have pushed dollar-denominat-
ed commodities, especially oil and pre-
cious metals, to new highs.
OIL
US crude and oil product inventories
are reported to be at their lowest levels
since 2008, and with Opec member
Libya being battered by peace-keeping
bombing raids, oil prices are holding a
large risk premium. Brent crude is still
above $120 a barrel as a weaker dollar
and pressure on US crude stocks indi-
cated that prices have the potential to
climb much higher.
GOLD
Gold has been the biggest benefactor of
the global uncertainty. The weak dollar
has seen the yellow metal take its place
as the favoured haven currency. The
markets have seen flight into the de
facto currency with each earthquake,
revolution and Moody’s downgrade.
Since the start of the year, prices have
risen over eight per cent, with the price
for a troy ounce hitting a new record of
$1,518.6 yesterday.
Though UK investors may be rub-
bing their hands together in excite-
ment at the prospect of cashing in on
these gains, there is a barrier to sur-
mount. According to David Jones, mar-
kets analyst for IG Index, “we’ve seen
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When trading forex, it is possible to lose more than your
initial deposit.
It’s raining gains across the board for dollar
presidential men denominated commodities, but the
upside if you’re trading in a second
PICTURE: ALAMY currency can be somewhat limited.
Taking a look at gold for example. On
April 1, gold opened at $1,432 an
ounce and ended last week at $1,507.
Over the same time, it only rose from
£893 to £910.”
Adrian Ash, head of research for
BullionVault, also voices the same con-
cerns for UK investors: “If the dollar
weren’t sinking, gold would be pretty
much flat from the start of the year,
only just breaking $1,400 today. This
week’s big jump has been entirely
unwound in terms of the euro, yen,
| Contracts
Swiss, Canadian and Aussie dollar.”
IG Markets presents a way around
this issue for investors trading in ster-
ling. The CFD provider has recently
started offering clients the ability to
trade dollar denominated commodity
CFDs in sterling, eliminating the dollar
part of it. This covers the highest pro-
file instruments only (gold, oil et
cetera) but removes the exchange rate
risk and allows clients to focus purely
on the underlying direction of the
market.
With the dollar likely to remain in
its current state until at least the third
quarter, savvy investors can continue
to gain through CFDs.
19
for Difference
DOLLAR FEARS
MAY KEEP OIL
ON THE BOIL
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
F
INANCIAL markets initially reeled following last
week’s announcement from Standard & Poor’s
(S&P). The ratings agency downgraded its outlook
for US sovereign debt to “negative” from “stable”,
implying a 33 per cent chance that the US would lose its
AAA credit rating within the next two years. The agency is
concerned by the fiscal challenges facing the US and
warned policymakers to address the situation immediate-
ly rather than waiting until after the presidential election
in 2012. Many analysts shrugged off S&P’s warning either
by attacking the credibility of the agency or by insisting
that it is overreacting to old news. But the downgrade
highlights the danger to the US economy of the current
political impasse.
Investors are already worried about what will happen
to financial assets once the Federal Reserve ends its pro-
gramme of asset purchases this summer. On top of this,
the geopolitical and macroeconomic outlook is still a con-
cern. Violence continues to flare up across north Africa
and the Middle East; Japan is still struggling to deal with
its nuclear crisis and supply chain issues; Europe is ham-
pered by its debt problems, and inflation is on the rise
everywhere leading to interest rate hikes in the Eurozone,
as well as China and other emerging countries.
Firmer oil prices are also playing into this mix. Just a
few weeks ago, crude hit its highest level since the sum-
mer of 2008. It then pulled back sharply following a
number of “sell” recommendations from Goldman Sachs,
which cited weaker global demand, a possible ceasefire in
Libya and excessive long-side speculation. Crude has
since rebounded and made back around 50 per cent of its
losses. Then last week’s S&P downgrade hit prices again
as the US dollar rallied on a “flight to safety”, but support
has held at $121 for Brent and around $106 for the WTI
contract. The oil price should be self-correcting to some
degree. While higher prices hurt global growth and stoke
inflation, they also put a dent in demand. But it’s the dol-
lar that currently holds the biggest influence over oil.
With the Federal Reserve determined to complete its
$600bn of asset purchases, and as US policymakers
struggle to control the budget deficit, the dollar should
remain under pressure. This should ensure that oil prices
are kept on the boil.
gftuk.com | FOREX
free phone 0800 358 0864
GFT Global Markets UK Ltd. is authorised and
regulated by the Financial Services Authority.
CD03UK.150.040511
20 Wealth Management | Contracts for Difference
Go long on cocoa
after Gbagbo – just
don’t hold too long
Buying an Easter egg every year isn’t the only way
to gain exposure to cocoa, writes Philip Salter
Who next?
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European debt crisis, you should consider
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exceptional access to the largest and most
liquid financial market in the world.
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* Investment Trends 2010 UK Spread Betting/CFD Report.
AFRICAN COCOA PRODUCTION
Ivory Coast
Cameroon
Nigeria
Ghana
2010 COCOA PRODUCTION (EST.)
Thousand
tonnes
World 3,700
Africa 2,500
Ivory Coast 1,610
Ghana 490
Nigeria 212
Cameroon 129
Others (Africa) 59
Source: United Nations Conference on Trade and Development
A
CCOUNTING for over 40 per
cent of the world’s production,
Ivory Coast’s recent political cri-
sis sent the price of cocoa soar-
ing. However, it fell as quickly as it rose,
and with the political situation
resolved, traders now need to decide
whether it has fallen too far or not far
enough.
Despite President Alassane
Ouattara’s victory at the ballot box in
Ivory Coast’s elections at the end of last
year, he was unable to formally take
office until French special forces arrest-
ed former leader Laurent Gbagbo on 11
April. In between, Ouattara had
banned the export of cocoa to pres-
surise Gbagbo’s departure. The US, EU
and African Union all upheld the ban
to support the rightful victor, and now
these prohibitions are being rescinded.
David Jones of IG Markets explains
that during the crisis we saw “some big
moves in both directions – London
Cocoa ran up to 2,400 in March, from
around 1,900 at the end of 2010 – but
as things seem to be getting sorted out
it has gone all the way back down again
to 1,900.” Despite these sharp moves,
traders have had the distractions of
events in north Africa and the Japanese
earthquake to deal with. Once the
stockpiled cocoa hits the market, the
question will be whether the price will
drop further or whether the market
THE TIPSTER
APPLE STILL
GOLDEN BUT
SILVER WINS
S
HARES in Apple hit an all time
high of $364 back in February, but
its first quarter results have
smashed forecasts. Profits were up
90 per cent to $5.99bn from $3.07bn in
the same period last year. Some
investors thought Steve Jobs’s illness had
encouraged a slowdown in growth, and
they were wrong. His recent
commitment to “continue to innovate on
all fronts” put a strong message out to all
investors. Capital CFDs quotes $342.24-
$342.59.
There are expectations that crude oil
CITYA.M. 26 APRIL 2011
% of world
production
100
67.6
43.5
13.2
5.7
3.5
1.6
has already factored this in. Jones says
“1,800 has been a floor in recent times,
if someone was of the opinion that the
price has overshot to the downside
there is a good risk reward down here if
buying at 1,917 (July London Cocoa)
with a stop beyond 1,800, looking for a
move back up to the early 20s.”
According to Goldman Sachs’s
Commodity Watch paper of 15 April,
cocoa will “decline given this year’s
large West African production which
points to a market in surplus for the
2010/11 crop year and a global stocks-
to-use ratio back to its highest level
since 2005.” However, the paper cites
some medium-term factors pushing
the price up: “As demand continues to
grow, the production outlook for Ivory
Coast will remain key as aging
orchards, poor infrastructure and polit-
ical instability have curbed production
and investment over the past few years.
Further, while La Nina was beneficial to
west African production, a return to
neutral weather conditions suggests
that 2011/12 production will not be as
large as the current crop.”
A bet on cocoa is a bet for or against
Ivory Coast. Despite the large amount
of cocoa about to enter the market the
price should be pushed up in the medi-
um-term. Therefore, if you are hunting
for profits, cocoa could be the golden
egg you are looking for.
prices will continue to climb in the com-
ing months, not only as perceived dollar
weakness takes its toll, but also from
the strong seasonal pattern in the run
up to the US driving season. With the
US economy seemingly having turned a
corner, there is every reason to believe
that demand will remain strong. Even
though we’re sitting well above the psy-
chological $100 per barrel level, further
gains wouldn’t be much of a surprise.
Current IG Markets price on US light
crude for June is $112.15-$112.21.
The record for silver was $50 in
1980, but we may not have to wait too
long before we see it reach this level
based on ongoing global fundamentals.
The metal has been up on the back of
inflation concerns, government debt
downgrades and the Middle Eastern tur-
moil. The gold/silver ratio is currently
down to 30, favouring silver. Capital
CFDs quotes silver May $45.72-$45.75.
Philip Salter
 TRADE A N Y M A R K E T
WIN AMAZING PRIZES
e you place is another chance to win
Every trad

T HE WO RL D
AROUND
TH EV ERY TR ADE
WI

WIN an amazing experience every week,

including a fabulous trip around the world for two*

For more information visit

www.cityindex.co.uk/world

Spread betting and CFD trading can result in losses that exceed your initial deposit.

*Entry is restricted to UK residents aged 18 or over. Exclusions apply. Closing date is Friday 3rd June 2011 at 10:00pm. Terms and conditions apply, please see www.cityindex.co.uk/world
 22 Wealth Management | Markets CITYA.M. 26 APRIL 2011

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Lifestyle
Hardly the spice of life at the W
The Leicester Square
hotel’s restaurant is
inspired by Oriental
street food, but leaves
a lot to be desired
Spice Market
W Hotel, 10 Wardour Street, W1D 6QF
www.wlondon.co.uk
FOOD hIIII
SERVICE hhhII
ATMOSPHERE hhIII
Cost per person without wine: £45
W
HEN the W Hotel dropped like a
spaceship on the corner of
Leicester Square earlier this
year, it brought with it Spice
Market, the Pan Asian restaurant originat-
ed in New York by the lauded chef Jean-
Georges Vongerichten.
With a menu apparently inspired by his
experiences of Asian street food, it’s a
large, snazzy, moodily-lit place lined with
shelves of spice jars, and with all the soul
of a Nandos. A Nandos where the cheapest
red wine is £33, mind.
Spice Market partakes of the “sharing
food” philosophy, in which help-yourself
dishes are stacked in the middle of the
table. The problem with the sharing idea,
other than the whiff it carries of produc-
tion-line cooking, is its requirement for
consensus and agreement in the ordering
process. Glazing over as we browse
through the 40 or so dishes on offer, we
take the easy route out and try the five-
course, £48 tasting menu.
It doesn’t start well and goes downhill
from there. Shaved tuna in chilli tapioca
consists of a few sloppy slivers of taste-free
fish floating in a chilled white soup, with
little hint of the pear and lime described
on the menu. Accompanying it, a lobster
summer roll contains only the tiniest off-
cut of lobster meat, and tastes of vinegar.
Next up, spiced chicken samosas with a
coriander yoghurt score neither for inter-
est nor taste – what coriander? What
spice? – while little, lukewarm clumps of
beef on skewers register only for their
strange, spongy texture.
Something a bit more substantial
THREE NEW WEST END RESTAURANTS
TIMOTHY BARBER
ST JOHN HOTEL
The brand new West End outpost of Smithfield’s most
famous restaurant is a smart, bijoux haven of white-
washed calm and simple culinary brilliance. Suckling pig
for two with watercress and potato is an adventure in
itself, snails and bacon are heavenly, while even tripe and
onions has been winning fans. 1 Leicester St, WC2H 7BL
www.stjohnhotellondon.com
WORDS BY
TIMOTHY BARBER
The interior of the
Spice Market features
shelves packed with
spices and moody
lighting.
arrives in the shape of a halibut fillet, sit-
ting plumply in the midst of a sticky,
mahogany-coloured Malaysian chilli
sauce. It’s a good bit of fish, nicely cooked
and easy to pick apart, but utterly
swamped for flavour by the icky, catch-the-
back-of-the-throat sweetness of the sauce,
of which there’s far too much.
Each course is explained at tiresome
length by our friendly, orange-pyjama’d
waiter, who points out this bit and that as
though we’ve never laid eyes on a plate of
soy-doused broccoli before.
Having said that, one thing I haven’t
seen before is the accompaniment to our
main course of char-grilled chicken: a
huge, perfectly circular pile of fried rice
on top of which sits a Frisbee-sized fried
egg, its white encrusted thickly with a
rust-coloured dust. The dust, apparently, is
fried ginger, but once our waiter has help-
SPUNTINO
There seems to be no stopping the stratospheric trajec-
tory of those behind Polpo, the popular Soho eatery
serving Venetian style tapas – and good thing too. After
opening Polpetto above the French House pub, Russell
Norman has launched small plate, bar food-tastic
Spuntino on Rupert Street. 61 Rupert Street, W1D 7PW.
www.spuntino.co.uk
fully mashed the whole thing together
with my fork, the only thing to taste is
burnt garlic and oil.
It’s revolting, and so is the chicken
accompanying it. The burnt, bitter carbon
taste of the grill is as nothing compared to
the astringent horror of the kumquat
lemongrass dressing it’s soaked in.
Dessert is – give me strength – Ovaltine
kulfi, an oblong slab you could use for fur-
niture stuffing, topped with a splurge of
sugary cream which, if it didn’t come
from a can, gives every appearance of hav-
ing done so. A mouthful of the kulfi sits in
the belly like a lead weight.
Other than the fried rice, the dishes
look pretty, and that’s the best that can be
said of them. Even in this jazzy new hotel,
it seems the best traditions of Leicester
Square dining are being maintained: this
is naff, overpriced and lousy.
NOPI
Cosy, friendly, all-day dining brasserie from renowned
Israeli chef Yotam Ottlongenghi, specialising in Middle
Eastern and Asian flavours. It’s all about sharing plates,
with dishes such as slow cooked pig cheek with celeriac,
rose veal carpaccio and confit kingfish with artichoke,
plus a heap of vegetarian options. 21-22 Warwick St,
W1B 5NE. www.nopi-restaurant.com
23
FOOD & BOOZE
NEWS
TIMOTHY BARBER
BECK LAUNCHES NEW APSLEYS MENU
Anyone searching for a really lavish Spring din-
ing experience could do worse than head to
Apsley’s restaurant at the Lanesborough Hotel.
Heinz Beck, the multi-starred German chef who
specialises in the finest Italian cooking, has
launched a new menu there which includes
some of the most joyfully lovely dishes to be
found in London right now. Scallops with
asparagus and black truffle, foie gras with wild
mushroom consomme and cereals, and wild red
sea bream carpaccio with exotic fruit vinai-
grette are some of the seasonal delights on
offer. The Lanesborough, Hyde Park Corner,
SW1X 7TA. www.lanesborough.com
RESTAURANTS TURN TO FLOWER POWER
Get booking now for restaurants that will be
getting in the spirit of the Chelsea Flower Show
next month. Kensington perennial Daphne’s will
be offering a floral-inspired set menu from 17-30
May which comes with a complimentary G&T.
Chef Jun Tanaka of Holborn’s Pearl Restaurant
will also be serving up flowery specials from the
23-28 May, with ingredients including hawthorn
blossom, pea flowers, sorrel flowers and elder-
flower. The Connaught Hotel’s brilliant chef
Helene Darroze is putting together an afternoon
tea using edible flowers, to be washed down
with a glass of Laurent Perrier Rose fizz.
www.daphnes-restaurant.co.uk; www.pearl-
restaurant.co.uk; www.the-connaught.co.uk
A ROOM WITH A VIEW OF THE WEDDING
Galvin at Windows, the Michelin-starred restau-
rant at the top of the Hilton Hotel tower on Park
Lane – its views overlook Buckingham Palace
gardens and part of the wedding procession
route – is running a special, £45 royal wedding
lunch menu from today until Friday, with a free
glass of bubbly for anyone named Will or Kate.
www.galvinatwindows.com
 24 Lifestyle In association with CITYA.M. 26 APRIL 2011

Zara Phillips knows a thing or two about relaxation.

So if she favours a beautiful horsey
resort in the rolling hills near Lisbon,
it can’t be a bad place for us, either
A Silver Coast golf and riding resort is also a top spot for kids, finds Jenny Forsyth

T
HESE are busy days for Zara
Phillips, what with her wedding
to rugby player Mike Tindall in
July, her cousin Will’s nuptials
this week and training to compete in
next year’s Olympics.
But judging by Zara’s choice of holi-
day home – a 220 sq m, four-bedroom
villa with pool set on rolling
Portuguese hills half an hour from
Lisbon – this is one royal who knows
how to relax.
Fittingly, the 29-year-old champion
showjumper is investing in the new
vineyards section of properties being
developed by Eduardo Netto de
Almeida, who is part of a dynasty of horse riding nightmares of being
Portuguese horsemen and a friend of thrown off and having your toes
Phillips’ father, the Olympic gold stamped on.
medallist Captain Mark Phillips. If you can drag yourself away from
The site is CampoReal Golf Resort the relaxing atmosphere of CampoReal
and Spa, a 200-acre development com- (or move too far after sampling the
plete with five star hotel, health spa delights of the hotel’s wide-ranging
and 18-hole golf course. A riding school breakfast buffet), the area, known as
and equestrian centre on site was an the Silver Coast, is a brilliant base for
obvious drawcard for Zara, who has tourism.
also competed in the area. Lisbon, the vibrant capital of
But while the estate boasts its own Portugal, historic Sintra and Obidos
royal lineage – it was once and the beautiful beaches of
the private property of Peniche, Praia de Santa
Portuguese mon- Cruz and Ericeira are
archs who used it all within easy driv-
for hunting – it ing distance.
mixes a world We spent a
of fine din- day walking
ing and the cobbled
pampered streets of
luxury Sintra, where
with laid- the children
b a c k eschewed the
charm. more obvi-
Need a lift ous sights
from the such as the
hotel to grand Palacio
your apart- Nacional de
ment? The Sintra for a walk
concierge will through a wooded
have you back in national park and
a jiffy in the golf an audience with the
buggy. “chicken man” and his
For a family holiday, stay- noisy feathered friends, all
ing at one of the spacious rented apart- named after world class footballers.
ments linked to the hotel, CampoReal Come lunch time, we followed an 80-
seemed to have as much to offer the year-old woman’s apparently guileless
children as we adults. advice and found ourselves enjoying
A massive outdoor pool, plus an
indoor pool and tennis courts, school
holiday kids’ club and organised bike
rides ensure there is always something RIDING: THE MENU
fun to do.
But the highlight for all of us was a
chance to enjoy the ride at the neigh- l Initiation class (30 min)
bouring Centro Equestre (Equestrian €30
Centre). l Level 2 (1 hour) €50.
The centre, which stables around 40 Includes riding indoor on
horses, offers horse riding tuition for own, walk trot and gallop.
everyone from the novice (my children) l Advanced (1h) €70. This
to the experienced (my husband) and includes jumping or
the very wary (me). advanced dressage, (includ-
In a large, sunlit arena, husband and ing piaffe).
wife team Cuca and Miguel gently
guided us through the basics, training
us to sit straight and hold the reins cor-
rectly.
By the end of our individual lessons
my husband was effortlessly jumping
his horse, the children were grinning
with delight as they went “round the
world” (turning around in the saddle)
and I had all but forgotten my previous
CITYA.M. 26 APRIL 2011
delicious and authentic Portuguese
salted fish in a rather down-at-heel cafe
cum shop. Who would suspect a
woman of that age was a tout for the
restaurant?
At Peniche, a cool surfing beach, we
watched the action in the water, then
enjoyed the simple delights of fossil
hunting (the children) and photo-
graphing long shadows in the brilliant
In association with
Left: a view of Campo
Real, below, one of its
terraces, bottom left: a
rider at the equestrian
school, bottom right, a
pretty scene in nearby
Obidos.
The estate boasts its own royal lineage –
it was once the private property of
Portuguese monarchs
sunlight (me).
Then it was off to Obidos for a stroll
through the charming winding
streets, stopping at hillside shops to
sample the local specialty, a cherry
brandy, and admire the pottery.
Only a small tussle between my son
and daughter over a toy sword outside
one shop, which inevitably resulted in
broken pottery, put a small dampener
CAMPO REAL NEED TO KNOW
l CampoReal Golf Resort & Spa
2565-779, Turcifal
Portugal
www.camporeal.co.uk,
tel: +351 261950050
l Double rooms from €88
l One bedroom apartments from
£170,000 and two bedroom
apartments from £190,000
l Three bedroom townhouses
from £327,000
l Four bedroom villas from:
£560,000
lFor property enquiries call:
Premier Resorts on 020 8940
9406 or Hamptons International
on 020 7963 0614
on our visit.
But even the pain of buying €45-
worth of broken dishes was all but for-
gotten after an hour at CampoReal’s
DiVine health spa.
True to the vineyard inspired name,
it offers vinotherapy – a treatment that
uses grape skins, grape oil and wine for
their beauty and health benefits.
But I decided to stick to wine by the
glass only, and opted for a heavenly
hour-long back and shoulder treat-
ment that left me floating on air.
Truly, with all the stresses of his
country’s burgeoning debt, a potential
bailout and his recent resignation, for-
mer Portuguese prime minister Jose
Socrates could do worse than come
here for a massage.
Chances are, of course, he has
already been here. CampoReal is a pop-
ular venue for conferences and can
host up to 550 people. During the time
of our visit, a banking conference was
underway.
And after unwillingly packing our
bags and leaving CampoReal we
looked out of our plane window to see
US President Barack Obama’s Air Force
One plane on the other side of the run-
way, having arrived for the NATO sum-
mit.
I’m sure Zara Phillips would agree –
an hour or two of horse riding at
CampoReal, followed by a groaning
plate of fresh seafood at the formal
restaurant Grande Escolha, would
have been enough to banish all his
worries about global economics.
Lifestyle 25
TRAVEL NOTES | by Zoe Strimpel
GO PRIVATE IN PALMA NEW LEELA IN DELHI
Mallorca, a perennial favourite for the Leela Palaces, one of the best hotel
euro-chic, has a new enticement, in the brands in India, has just launched a new
form of a new private wing at the property in New Delhi. Located in the
ultra-swanky Puro Hotel in elite Diplomatic Enclave, it’s
Palma. With 11 suites, the inspired by the English ele-
wing is available for pri- gance of Edwin Lutyens
vate hire and connect- and designed by
ed to the restored
18th century town-
acclaimed architect
John Gerondelis.
house hotel so you
can use the ameni-
Highlights are a
rooftop pool with
ties. As for the
interiors, think
magnificent views,
four restaurants
Marrakech meets and a beautiful
Miami, with a sprin- Espa spa. Double
kling of Asia. The Rooms start from
new annex has a pri- £346 per night.
vate living room, www.theleela.com
numerous patios, a roof
deck with Jacuzzi, a spa and PORTO SANI OFFER
gym plus the benefits of 24-hour Sovereign Luxury Travel is offer-
concierge. Then there’s Purobeach, the ing a free upgrade to half-board for adults
perfect seaside hangout on a mini staying at the Halkidiki resort, plus a 20
peninsula in the middle of Palma Bay. per cent discount, a free child place, €200
Rates for exclusive use of the new wing spa credit per booking and seven nights
start at €3,750 per night on a bed and from £1,989 per family of 3 on a half-
breakfast basis. Go to board basis, departing 16 May 2011. Price
www.purohotel.com or call +34 971 includes flights from London Gatwick and
425 450 for more information. all internal transfers. www.sovereign.com
THINK ROOMS... with
VINCCI BAIXA 4*
Rua Do Comércio | nº 32 e 38 Rua Do S.Juliao
| nº 47 e 57 | 1100-150 Lisboa
Housed in an old townhouse in Baixa, the famous
shopping and banking district of Lisbon, Vincci Baixa
offers a truly enchanting stay. We love this bohemian
part of town and the hip feel of the hotel is a perfect fit
for its surroundings. Packed with style and elegance it’s
a great place to base yourself for exploring not just
Baixa, but the whole of historical Lisbon too.
HOTEL AVENIDA PALACE 5*
Rua 1º de Dezembro | 123 | 1200-359 Lisboa
An imposing neo-classical building in the heart of
Lisbon, you know you’re in for a treat the moment you
set eyes on Avenida Palace. And when you step inside
you’ll find the luxurious décor just as impressive. Its
classical style oozes majestic charm and the grand
Restauradores Square location is just perfect for
sampling the culture and contrasts of this fine city.
AXIS PORTO BUSINESS & SPA 4*
Rua Maria Feliciana |100 S.Mamede de
Infesta | 4465-283 Porto
This fantastic hotel is cool and modern with a really
striking design feature throughout – floor to ceiling
wooden panels running along each corridor showcasing
iconic images of Porto. And whether you’re visiting on
business or exploring the fascinating city for pleasure,
the swimming pool and spa facilities here are just the
sort you want to come back to at the end of the day.
To book your stay at any of these fabulous hotels, or to discover a whole world of other
accommodation possibilities, visit LateRooms.com or call 0161 831 3894.
 26 Lifestyle | TV& Games CITYA.M. 26 APRIL 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

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Review Show 12am Live Major
League Baseball 3am ESPN Press
Pass 3.30am Planet Speed 4am
Bundesliga Review Show 5.15am
ESPN Kicks: Serie A 5.30am-6am
ESPN Game of the Week
7pm CSI: Crime Scene
Investigation 8pm Cougar Town
8.30pm Hot in Cleveland 9pm
Katie 10pm Hunks 11pm Criminal
Minds 12am Ghost Whisperer 1am
CSI: Crime Scene Investigation
2.40am Charmed 4.20am Nothing
to Declare 5.10am-6am Maury
BBC THREE
7pm Don’t Tell the Bride 8pm
Misbehaving Mums-to-Be 9pm
Meet the Multiples 10pm
EastEnders 10.30pm Two Pints of
Lager and a Packet of Crisps
11.30pm Family Guy 12.15am The
Undercover Princes 1.15am Two
Pints of Lager and a Packet of
Crisps 2.15am Meet the Multiples
3.15am Misbehaving Mums-to-Be
4.15am-5.15am Don’t Tell the
Bride
E4
7pm Hollyoaks 7.30pm Friends
9pm 90210 10pm The Cleveland
Show 11pm Bob’s Burgers 5.30am-6am Destroyed in
11.30pm The Cleveland Show Seconds
12am The Big Bang Theory
12.55am How I Met Your Mother DISCOVERY HOME &
1.40am My Name Is Earl 2.25am
Ugly Betty 3.10am The Class HEALTH A HISTORY OF CELTIC BRITAIN
7pm A Baby Story 8pm 18 Kids
3.30am Heartland 4.15am-6am BBC2, 9PM
Switched and Counting 9pm Embarrassing Neil Oliver concludes his journey
Illnesses 10pm Britain’s Fattest through ancient history by focusing
HISTORY Woman 11pm Trauma Unit 12am on the legacy of the Romans. Last in
7pm America: The Story of the US Embarrassing Illnesses 1am the series.
8pm Monumental Challenge 9pm Britain’s Fattest Woman 2am
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3am America: The Story of the US SKY1
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Road Truckers Naked Gun: From the Files of Police
Squad! 1988. 10.40pm Fringe
DISCOVERY 11.40pm Brit Cops: Frontline Crime
7pm Deadliest Catch 9pm Wheeler UK 12.40am Ross Kemp on Gangs THE SECRET MILLIONAIRE
Dealers 10pm Deadliest Catch 1.40am UK Border Force 2.40am CHANNEL4, 9PM
12am Flying Wild Alaska 1am Cold Case 3.30am A Town Called The owner of a IT recruitment agency
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Weapons 3am Hitler: A Profile You’re Safe? 5.10am-6am Don’t of his sister by helping an epilepsy
3.50am The First World War Forget the Lyrics US awareness charity in Middlesbrough.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
    

SUDOKU KAKURO
3 38 11 17 37 20 11 28 
26 10
 
14 21
Place the numbers from 1 to 9 in each empty cell so that each 23   
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 6 35
8 39
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 8 10 10
 
above or to the left of it. 21 21
You can only use the digits 1-9 42   
    and you must not use the
22 6
24 27   
same digit twice in a block. 7
    The same digit may occur 30    
30 12
 more than once in a row or
column, but it must be in a
8
12
20
24
3

16 14
   separate block.
3 4 
29 13
  16 15


   ACROSS DOWN
4 Style of glazed 1 Cured pig’s meat (5)

    WORDWHEEL T E
earthenware or
pottery (5)
7 Pear-shaped
2 Hinged switch that
can assume either of
two positions (6)
Using only the letters in the Wordwheel, you have fruit (7) 3 Acid found in milk (6)
    ten minutes to find as many words as possible,
R L 8 Shake (3) 4 Duck’s feathers (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 10 Had better (5)
12 Sibling’s
5 Racing sled for one
or two people (4)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
O L daughter (5)
13 Animal’s home (4)
6 River which flows
through Rome (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
B A 15 Very cordial (9)
19 Cipher (4)
9 Japanese martial art, a
form of wrestling (6)
QUICK CROSSWORD 7 4 3 8 6 9
21 Yawns wide (5) 11 Cuts into two equal

S E A B E D D E
5 2 3 1 4 2 4 1 SUDOKU         
24 Religious
doctrine (5)
pieces (6)
14 Legendary bird (3)
8 5 9 2 7 4 1 6 3
I O O R D E R S          25 Viper (3) 16 Self-contained
S L A T E S C S 6 1 5 9 8 8 4
        
A H S T R I K E 9 8 3 6 1 8 26 Made up of component (6)
        
L O S E S Y D X 4 3 2 1 6 9 8 7 famous top 17 Invalidate (6)
WORDWHEEL
        
T R A M P L E 1 9 3 6 3 1 performers (3-4) 18 Representative (5)
M E G E A S E L         
A F L O A T D E
4 2 2 1 5 6 2 27 Make a rhythmic 20 Mr Humphries, aka Dame
        
Y L E N I G M A
6 1 2 8 4 9 7 5 3 The nine-letter word was sound with the Edna Everage (5)
9 7 8 6 8 9 7 5         
O R A T O R E V
SUBMARINE         
fingers (5) 22 Set of two (4)
R R M O S Q U E 3 1 2 7 9 4
23 Unwanted email (4)
CITYA.M. 26 APRIL 2011
Rangers are up, up but not
quite away after late shock
QPR 1 FORMULA ONE
HULL CITY 1 ten to F1 chief Bernie Ecclestone
▲
FOOTBALL
BY JAMES GOLDMAN
QUEENS PARK RANGERS missed the
chance to rubber stamp their return
to the Premier League after Simeon
Jackson’s 95th minute winner for
Norwich against Derby ruined the
promotion party at Loftus Road.
A victory over Hull would’ve ren-
dered Norwich’s victory irrelevant,
but David Amoo cancelled out Wayne
Routledge’s early opener in the 81st
minute to leave Neil Warnock’s side
sweating on events at Carrow Road.
Jackson’s strike, which completed
his hat-trick, arrived with Rangers
fans on the pitch prematurely toast-
ing an elevation back to the top flight
after a 15-year absence.
Rangers are still strong favourites
to go up automatically – they lead
third placed Cardiff by six points with
two games to go and boast a vastly
superior goal difference – and manag-
er Warnock insists yesterday’s events
won’t take the gloss off a hugely suc-
cessful season.
He said: “I’m disappointed not to
have tied it up. We are five points
clear (of Norwich in second) with two
games to go, you can’t ask for much
more.
“It’s a healthy position to be in and
it certainly makes the Watford game
on Saturday more appetising.”
City close in on Champions League spot thanks to Dzeko
BLACKBURN 0 game in the 75th minute,
MANCHESTER CITY 1 tutes’ bench.
▲
FOOTBALL
BY JAMES GOLDMAN
MANCHESTER CITY striker Edin
Dzeko expressed his relief at finally
breaking his Premier League duck as
his goal earned Roberto Mancini’s
side a crucial win in their pursuit of
Champions League qualification.
The Bosnia international fired
Yardy winning battle with
depression, confirm Sussex
CRICKET
▲
ENGLAND spinner Michael Yardy is
close to playing his first match since
he left the World Cup early last
month after admitting to suffering
with depression.
The 30-year-old stepped up his
recovery yesterday when he netted
with his Sussex colleagues and
according to his county coach, Mark
Robinson, next week’s County
Faurlin and QPR must wait a little longer to book their return to the Premier League
home the only goal of the
just three minutes after
emerging from the substi-
Dzeko, who had gone
nine top flight games with-
out a goal, secured a win
which moved City four points
clear of fifth placed Spurs and
to within five points of falter-
ing Arsenal with a game in
hand.
“I'm very happy that this
goal helped my team to win
the game,” said Dzeko.
“Sometimes it’s difficult, I’m
Championship match at Hampshire
is being pencilled in as his potential
return date.
Robinson said: “He is going well.
Every week he has practised more.
This week he was in every day, includ-
ing Saturday, so he is getting close.
“I think this week will be too early.
Whether he is in a situation to play
the week after we will just have to
wait and see. We would love to have
him back because he is quality.”
not the first who didn’t make the best
start but I’m happy because I scored
today and helped the team.”
Mancini added: “I’m very happy for
Edin because he deserves to score, he
is a good player and a
good man. In the
first half we played a
fantastic game, we
should have scored
two goals minimum. In
the second half the
game changed,
Blackburn were hard.”
Rovers are now firm-
ly entrenched in a relegation
battle, just a point off the drop
SPORT | IN BRIEF
Carberry wins Irish National
HORSE RACING: Nina Carberry won the
Irish Grand National on
Organisedconfusion at Fairyhouse. The
six-year-old was taking a big step up in
trip but appeared to relish the extra dis-
tance to land an emotional success for
Carberry and her uncle, Arthur Moore.
The later, who won the race as a jockey
in 1971, said: “He's a lovely horse – so
laid-back. We were a bit worried with
him only being six but he has a great
engine. It’s a great family occasion with
Nina on board.”
Hendry ponders retirement
SNOOKER: The seven-time Crucible
champion Stephen Hendry is considering
Sport 27
Ecclestone
urged to stop
Bahrain GP
▲
PRO-DEMOCRACY activists have writ-
pleading with him not to reinstate
this year’s Bahrain GP.
The 13 March Formula One season
opener was called off due to civil
unrest, which is still ongoing, with
the organisers given until 1 May to
inform Formula One’s governing
body whether or not they want the
race reinstated on this year’s calen-
dar.
The ‘Youth of the 14 February
Revolution’ wrote: “In support of the
population of Bahrain, we’re asking
you reconsider hosting Grand Prix of
Bahrain until basic human rights and
freedom are restored, and, if you
wish, to issue a letter stating that the
Grand Prix cannot, and will not, be
organized in Bahrain until basic
human rights are restored.
“We thank you for your support
and wish to see the Grand Prix in
Bahrain soon, in a free and democrat-
ic atmosphere.”
Woodward
not right for
England job
Picture: ACTION IMAGES
▲
RUGBY UNION
FORMER RFU council member Jeff
Probyn has warned the governing
zone. Their manager Steve Kean said: body against appointing Sir Clive
“If we continue to approach the
games like that we will put points on
Woodward as performance director.
World Cup winning coach
the table and climb the league.” Woodward has been heavily linked
with the vacant post, but Probyn
believes his potential appointment
TOP SIX would antagonise current England
TEAM PLD W D L F A PTS boss Martin Johnson.
Probyn said: “Clive likes to do
Man Utd 34 21 10 3 71 32 73 things his way and have complete
Chelsea 34 20 7 7 64 27 67 control. I am not sure how well that
would sit with Martin Johnson.
Arsenal 34 18 10 6 67 36 64 “Martin has an interesting history
Man City 33 17 8 8 51 30 59 with Clive and it is far from a given
that the two would get along. Their
Tottenham 33 14 13 6 49 41 55
relationship is not as good as people
Liverpool 34 15 7 12 51 39 52 think it is.”
Results
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retirement following his second-round 9cXZbYlie%%%%%%%%%%%%%%'  ' DXe:`kp%%%%%%%%%%%%%%%%%%%%'  (
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O’Driscoll skips Royal wedding
RUGBY UNION: Ireland captain Brian KF;8PËJ;@8IP
O’Driscoll has turned down an invite to
the royal wedding in favour of a Leinster L<=8:_Xdg`fejC^\J\d`=`eXc=`ijkC\^
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training session ahead of their Heineken 9XiZcXpjGi\d`\iC\X^l\
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on my career is that personal gratifica-
tion takes second place. The team ethos IL>9PC<8>L<
comes first even after 12 years,” he said. \e^X^\Jlg\iC\X^l\1?l[[\ij]`\c[mJXc]fi[.gd %
“I'll be at home, preparing for Toulouse.” email sport@cityam.com
 Sport
28 CITYA.M. 26 APRIL 2011

RANGERS PUT THE

CHAMPAGNE ON ICE
PROMOTION PARTY
POOPED BY HULL: P27

Fergie eyes a SCHALKE | DANGERMEN

They might be surprise packages but
the Bundesliga side have a solid spine

chance to join
capable of causing an upset

the Euro elite Raul: Ryan Giggs won’t be the only

golden oldie on show tonight. The
competition. Twice Ferguson has lost Spaniard is the competition’s all-time
at this stage against Bundesliga record scorer with 71 goals. At 33,
MANCHESTER UTD sides – to Bayer Leverkusen in 2002 he’s lost the majority of his pace but
and Borussia Dortmund in 1997 – his predatory instincts are still intact
and despite their lowly standing in
SCHALKE their domestic league, Ferguson
won’t be taking Schalke lightly.
He said: “There is now way
▲

FOOTBALL Manchester United are going to be led

BY JAMES GOLDMAN
MANCHESTER UNITED manager Sir
Alex Ferguson believes his side are on
the verge of shedding their European
inferiority complex ahead of tonight’s
Champions League semi-final against
Schalke.
Ferguson is desperate to conquer
Europe for the fourth time in the
club’s history, and draw closer to the
number of major titles earned by the
likes of fellow continental heavy-
weights Bayern Munich, AC Milan
and Real Madrid.
He said: “I think this is where we
should be. My expectation has always
been high in regards to the European
scene, but we do get envious of the
records of other clubs.
“We look at the records of Real
Madrid, AC Milan, Ajax, Bayern
Munich and Liverpool and we are try-
ing to get parity with that. We really
need to progress quickly to get to that
level.”
Barring the way to a third final in
four years are the competition’s sur-
prise package Schalke, who will be
hoping to extend Ferguson’s jinx
against German opposition in this
into believing this is going to be easy.
I think you always get apprehensive
at this stage of the competition. You
go through the gamut of emotions
when you get to these semi-finals
because they are never easy. Georgios Papadopoulos: Samuel
“But what you have seen is that this Eto’o came off considerably second
team will not give in. Absolutely no best when the Inter Milan striker
chance.” came up against the mountainous
Wayne Rooney returns to the scene Greek defender. Wayne Rooney will
of one of his most infamous crimes –
present a different challenge, though
the sending-off for stamping on
Portugal’s Ricardo Carvalho in the
2006 World Cup quarter-final – with
his manager under the opinion that
his striker is back to his best following
a year of struggles with form and fit-
ness.
“I didn’t know the sending-off was
in Gelsenkirchen,” said Ferguson.
“But it’s normal for any footballer to
put bad moments behind them.
“I think Wayne, more than anyone, Manuel Neuer: The Germany interna-
realises that performances are the tional is one of the prime candidates
thing that he will always be judged to succeed Edwin van der Sar in the
on because there is an expectation of Manchester United goal. Similarities
the boy. You see that he has stepped with former Bayern star Oliver Kahn
up to the mark for that.” extend beyond his blonde hair
United travelled to Germany with a
full strength squad, with the excep-
tion of striker Dimitar Berbatov. Rooney returns to Gelsenkirchen for the first time since he was sent off there in a World Cup quarter-final in 2006 Picture: ACTION IMAGES

Olympic bosses Guess which of these

rely on late surge men got treatment from
our online doctor?
OLYMPICS
▲

“But the best opportuni-

OLYMPIC chiefs are antic-
ipating a late dash to
secure tickets for the
London games ahead of
today’s midnight dead-
line for applications.
Bosses, who have con-
firmed that this will not
be the last chance for
members of the public to
purchase tickets, claim
they have been hugely
encouraged by recent
sales over the Easter peri-
od.
“Tickets will be made
available again,” said a
spokesman for LOCOG.
ty to get one is now, and From erectile dysfunction to hair loss or premature
we’d really encourage ejaculation, purchase genuine medicines quickly
anyone who wants one and discreetly. Go online today for expert healthcare
to try now.”
LOCOG will be creat-
you can hang your hat on.
ing an online exchange
forum, allowing tick-
etholders to resell at face
value, but the system has
drawn criticism from
ticketing experts.
“There is a risk that
millions of Olympic
fans will not get the
chance to attend the
games and events they
want to,” said Joe Cohen
of ticket exchange
Seatwave. Treatment subject to assessment. Service provided in partnership with DrThom, who are registered with the Care Quality Commission. Lloyds Pharmacy Limited, CV2 2TX.